42430 Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 

comply with the law and the standards 

listed above, due to limits on the powers 

of the sponsor and/or other local 

governments, or on other legal limits on 

the sponsor’s discretion to adopt certain 

measures. Other sponsors have the 

capability to adopt measures to satisfy 

the compliance standards but have not 

done so. The FAA may consider a 

commercial service airport sponsor’s 

inability to comply with the law and/or 

the minimum compliance standards as 

a militating factor in its review of 

requests for discretionary funding. 

6. Commercial service airports that 

fail to submit an access plan. The FAA 

expects commercial service airport 

sponsors with existing residential 

through-the-fence access to develop an 

access plan which addresses the law, 

preserves their proprietary rights and 

powers, and mitigates the inherent 

challenges posed by this practice. 

Beginning in Fiscal Year 2015, a 

sponsor’s failure to comply with the 

Final Policy may jeopardize its ability to 

compete for discretionary AIP grant 

funding. 

B. Requests to extend residential 

through-the-fence access at airports 

covered by this Final Policy 

As of the date of the enactment of 

Public Law 112–95 (February 14, 2012), 

a sponsor of a commercial service 

airport proposing to extend an access 

agreement must submit a current airport 

master plan and a revised residential 

through-the-fence access plan as 

detailed below. The ADO or regional 

division will forward its 

recommendations regarding each 

request to extend access to the Manager 

of Airport Compliance. Only the 

Manager of Airport Compliance may 

approve a sponsor’s request to extend 

access. In reviewing the proposal, the 

Manager of Airport Compliance may 

consult with TSA. 

1. Master Plan. A sponsor of a 

commercial service airport wishing to 

extend an existing residential throughthe-fence access agreement must submit 

a recent airport master plan to the ADO 

or regional division. The FAA considers 

a master plan to be recent if it was 

developed or updated within the past 5 

years. The master plan should explain 

how the sponsor plans to address future 

growth, development, and use of the 

airport property over the next 20 years; 

sponsors should work with ADO or 

regional division staff to develop an 

appropriate scope of work for these 

master plans. 

2. Residential through-the-fence 

access plan. The sponsor is responsible 

for revising its access plan, as discussed 

under section III of this Final Policy, to 

reflect how it will meet the standards 

for compliance for the extended access. 

Once FAA has accepted the revised 

access plan, FAA will condition future 

AIP grants upon its ongoing 

implementation. 

3. Continuing obligations. Once the 

revised access plan is accepted by FAA, 

and if required, the revised ALP, is 

approved by FAA, the sponsor must 

continue to comply with obligations 

described in section IV.A of this Final 

Policy. 

V. Eligibility for AIP Grants 

A. General. Beginning in Fiscal Year 

2015, a sponsor of a commercial service 

airport with existing residential 

through-the-fence access will be 

required to submit their residential 

through-the-fence access plan prior to 

notifying FAA of its intent to apply for 

an AIP grant. The sponsor will not lose 

eligibility for entitlement grants on the 

basis of the through-the-fence access, 

but FAA will consider the potential 

constraints on the utility of the airport 

to be a significant factor in future AIP 

funding decisions. 

B. Public infrastructure and facilities 

with substantial benefit to private 

through-the-fence users. The FAA may 

be unable to justify the Federal 

investment in a proposed project when 

private residential developments with 

through-the-fence access will receive 

substantial value from that federally 

assisted airport infrastructure and/or 

facility. 

C. Exclusive or primary private 

benefit. On-airport infrastructure and 

facilities used exclusively or primarily 

for accommodation of through-the-fence 

users are considered private-use and are 

ineligible for AIP grants. 

Issued in Washington, DC on July 9, 2013. 

Randall S. Fiertz, 

Director, Airport Compliance and 

Management Analysis. 

[FR Doc. 2013–16917 Filed 7–15–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 740, 772 and 774 

[Docket No. 130104008–3008–01] 

RIN 0694–AF81 

Revisions to the Export Administration 

Regulations Based on the 2012 Missile 

Technology Control Regime Plenary 

Agreements 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is amending the Export 

Administration Regulations (EAR) to 

reflect changes to the Missile 

Technology Control Regime (MTCR) 

Annex that were agreed to by MTCR 

member countries at the October 2012 

Plenary in Berlin, Germany, and at the 

MTCR Reinforced Point of Contact 

(RPOC) meeting in Paris, France, in 

December 2011. This final rule revises 

six Export Control Classification 

Numbers (ECCNs) (1C011, 1C111, 

1C116, 9A101, 9B105 and 9E101) and 

one defined term (the definition of 

‘‘payload’’) to implement the changes 

that were agreed to at the meetings. This 

final rule also revises ECCNs 7E004 and 

9D004 to better align the Commerce 

Control List (CCL) with the MTCR 

Annex and past MTCR agreements. 

DATES: This rule is effective: July 16, 

2013. 

FOR FURTHER INFORMATION CONTACT: 

Sharon Bragonje, Nuclear and Missile 

Technology Controls Division, Bureau 

of Industry and Security, Phone: (202) 

482–0434; Email: 

sharon.bragonje@bis.doc.gov 

SUPPLEMENTARY INFORMATION: 

Background 

The Missile Technology Control 

Regime (MTCR) is an export control 

arrangement among 34 nations, 

including most of the world’s advanced 

suppliers of missiles and missile-related 

equipment, materials, software and 

technology. The regime establishes a 

common list of controlled items (the 

Annex) and a common export control 

policy (the Guidelines) that member 

countries implement in accordance with 

their national export controls. The 

MTCR seeks to limit the risk of 

proliferation of weapons of mass 

destruction by controlling exports of 

goods and technologies that could make 

a contribution to delivery systems (other 

than manned aircraft) for such weapons. 

In 1992, the MTCR’s original focus on 

missiles for nuclear weapons delivery 

was extended to a focus on the 

proliferation of missiles for the delivery 

of all types of weapons of mass 

destruction (WMD), i.e., nuclear, 

chemical and biological weapons. Such 

proliferation has been identified as a 

threat to international peace and 

security. One way to counter this threat 

is to maintain vigilance over the transfer 

of missile equipment, material, and 

related technologies usable for systems 

capable of delivering WMD. MTCR 

members voluntarily pledge to adopt the 

regime’s export Guidelines and to 

mstockstill on DSK4VPTVN1PROD with RULES

Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 42431 

restrict the export of items contained in 

the regime’s Annex. The 

implementation of the regime’s 

Guidelines is effectuated through the 

national export control laws and 

policies of the regime members. 

Amendments to the Export 

Administration Regulations 

This final rule revises the Export 

Administration Regulations (EAR) to 

reflect changes to the MTCR Annex 

agreed to at the October 2012 Plenary in 

Berlin, Germany, and the MTCR 

December 2011 Reinforced Point of 

Contact meeting (RPOC) in Paris, 

France. Corresponding MTCR Annex 

references are provided below for the 

MTCR Annex changes agreed to at the 

meetings. This rule also makes two 

conforming changes to correlate the 

Commerce Control List (CCL) 

(Supplement No. 1 to Part 774 of the 

EAR) with the current MTCR Annex. 

These conforming changes are made to 

better align the MT controls on the CCL 

with the MTCR Annex and past MTCR 

agreements. In the explanation below 

for the revisions made in this rule, BIS 

identifies these changes as follows: 

‘‘Berlin 2012 Plenary,’’ ‘‘Paris 2011 

RPOC’’ and ‘‘CCL Conforming Change to 

MTCR Annex’’ to assist the public in 

understanding the origin of each change 

included in this final rule. 

In Section 740.20 (License Exception 

Strategic Trade Authorization (STA)), as 

a conforming change for the revision of 

the MT control on ECCN 7E004 

described below, this rule amends 

paragraph (b)(2) (Limitations on Use of 

License Exception STA) by 

redesignating paragraph (b)(2)(vii) as 

paragraph (b)(2)(viii). Under new 

paragraph (b)(2)(vii), this rule continues 

the existing limitation on the use of 

License Exception STA. Paragraph 

(b)(2)(vii) will specify that License 

Exception STA may not be used for 

7E004 ‘‘technology,’’ except for 

‘‘technology’’ controlled under 

7E004.a.7. Prior to publication of this 

final rule, this ‘‘technology’’ was not 

eligible for License Exception STA 

because the ‘‘technology’’ was MT 

controlled. This change is being made 

for consistency with the MTCR Annex. 

BIS decided it was still warranted to 

exclude the technology under 7E004 

that had previously been excluded 

under License Exception STA. This 

change to License Exception STA 

continues the existing limitation on the 

use of License Exception STA for 7E004 

‘‘technology,’’ so this change preserves 

the status quo in terms of License 

Exception STA ineligibility under the 

EAR for 7E004. 

Additionally, this rule revises the 

EAR in Section 772.1 (Definitions of 

Terms as Used in the Export 

Administration Regulations) by 

amending the definition of the term 

‘‘payload’’ (MTCR Annex Change, 

Definitions: ‘‘Payload,’’ Berlin 2012 

Plenary). The definition of ‘‘payload’’ is 

revised by changing the description for 

space launch vehicles in Technical Note 

b.1 from ‘‘satellites’’ to ‘‘spacecraft, 

including satellites,’’ and by changing 

the description for space launch 

vehicles in Technical Note b.2 from 

‘‘satellite-to-launch vehicle adapters,’’ to 

‘‘spacecraft-to-launch vehicle adapters.’’ 

The term satellite could be more 

limiting than intended, while the term 

spacecraft is broader and includes any 

type of spacecraft payload that could be 

carried on a space launch vehicle. For 

these reasons, the MTCR members 

decided to revise the definition of 

‘‘payload’’ to clarify the scope of the 

types of payload for space launch 

vehicles that are included in the 

‘‘payload’’ definition under Technical 

Notes b.1 and b.2. This clarification will 

have little impact on items subject to the 

EAR, and therefore not cause an 

increase in license applications received 

by BIS. 

In addition, this rule amends the CCL 

to reflect changes to the MTCR Annex. 

This final rule also revises Export 

Control Classification Numbers (ECCNs) 

7E004 and 9D004 to better align the CCL 

with the MTCR Annex and past MTCR 

agreements. Specifically, the following 

eight ECCNs are affected: 

ECCN 1C011 is amended by revising 

the MT control(s) paragraph in the 

License Requirements section to 

indicate the MT control applies to 

1C011.a and .b for materials that meet 

or exceed the parameters in 1C111. This 

change clarifies that the MT control 

applicable to 1C011.b only applies 

when the boron or boron alloys also 

meet the size requirement specific to the 

MTCR Annex (i.e., where at least 90% 

of the total particles by particle volume 

% or weight % are made up of particles 

of less than 60 mm). (MTCR Annex 

Change, Category II: Item 4.C.2.e., Berlin 

2012 Plenary). Boron and boron alloys 

with the purities specified were 

previously controlled, but the 

interpretation of the size requirement 

was not clear between MTCR Partners. 

While the text could be read as meaning 

that all of the material had to be less 

than 60 mm to be controlled, many 

Partners were controlling material that 

had a median particle size of 60 mm. The 

new measurement criteria clarifies that 

at least 90% of the material must be less 

than 60 mm to be controlled, and the 

criteria encompass several techniques 

used for measuring particle size by 

including multiple standard reporting 

practices within the control text and 

providing examples of test methods. 

Because the MTCR partners decided to 

make the size control more specific, 

additional detail was needed to qualify 

how the size is to be ascertained and 

reported for purposes of determining 

whether such material is MT controlled. 

The new measurement criteria being 

added in this final rule will ensure the 

different testing methods currently in 

use, such as laser diffraction and sieves, 

will be applied in a consistent manner 

in determining whether such material is 

MT controlled under ECCN 1C011 or 

controlled under ECCN 1C111. 

Additionally, because boron of this 

purity is controlled by both the MTCR, 

and for NS reasons, by the Wassenaar 

Arrangement (WA), and the WA has not 

adopted these changes, this final rule is 

implementing the MTCR-agreed change 

to 1C011.b by qualifying the scope of 

the MT control(s) paragraph. As this 

type of boron material typically meets 

the specifications of both the prior and 

updated text, this change is not 

expected to have any impact on the 

number of license applications received 

by BIS. 

ECCN 1C111 is amended by revising 

the ‘‘items’’ paragraph (a.1) in the List 

of Items Controlled section by including 

the term ‘‘spheroidal’’ and removing the 

phrase ‘‘particles of uniform diameter’’ 

from paragraph (a.1). (MTCR Annex 

Change, Category II: Item 4.C.2.c., Berlin 

2012 Plenary). This change will address 

a concern of the MTCR members that 

particles that are not exactly spherical 

might be interpreted as being outside 

the scope of this control. The changes 

are being made because aluminum 

powder particles are not exactly 

spherical. This is a clarification of the 

control and is consistent with how BIS 

has interpreted the scope of ECCN 

1C111. Therefore, this clarification will 

have no impact on the number of 

license applications received by BIS. 

This rule is also removing under 

paragraph (a.1) the phrase ‘‘other than 

those controlled by the U.S. Munitions 

List,’’ because this concept (that items 

that are enumerated or described on the 

U.S. Munitions List (USML) are subject 

to the ITAR and therefore not ‘‘subject 

to the EAR’’) is already stated in other 

places in the EAR, in particular part 734 

(Scope of the Export Administration 

Regulations). 

ECCN 1C111 is also amended by 

revising the ‘‘items’’ paragraph (a.2) in 

the List of Items Controlled section to 

modify the controls for certain powders. 

(MTCR Annex Change, Category II: 

Items 4.C.2.d. and 4.C.2.e., Berlin 2012 

mstockstill on DSK4VPTVN1PROD with RULES

42432 Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 

Plenary). The same interpretation that 

applies to the size criteria of boron 

powders as described above in ECCN 

1C011 applies to zirconium, beryllium, 

and magnesium powders. Hence, the 

same new measurement criteria in 

modified ECCN 1C011 are being applied 

to ECCN 1C111 to clarify that at least 

90% of the material must be less than 

60 mm to be controlled. The criteria also 

encompass several techniques used for 

measuring particle size by including 

multiple standard reporting practices 

within the control text and providing 

examples of test methods, as described 

in detail in the discussion of changes to 

ECCN 1C011 above. 

In addition, this rule removes the 

phrase ‘‘metal fuels and their alloys’’ in 

paragraph (a.2) and replaces it with the 

more precise and accurate term ‘‘metal 

powders’’ to conform to the MTCR 

Annex and the intent of this CCL 

control. This final rule adds the phrase 

‘‘and alloys’’ after ‘‘metal powders’’ to 

clarify that although the term metal 

fuels is being replaced with the term 

metal powders, the scope of paragraph 

(a.2) still extends to alloys of those 

metal powders. This rule also removes 

under paragraph (a.2) the phrase ‘‘other 

than those controlled by the U.S. 

Munitions List,’’ because this concept 

(that items that are enumerated or 

described on the USML are subject to 

the ITAR and therefore not ‘‘subject to 

the EAR’’) is already stated in other 

places in the EAR, in particular part 

734. The criteria in 1C111 are also being 

updated in this final rule to clarify that 

alloys of these metals are only 

controlled when they are 97% or more, 

by weight, of zirconium, beryllium, or 

magnesium, which is consistent with 

how BIS has interpreted the scope of 

ECCN 1C111. 

This rule also adds the control on 

boron powders, previously only 

controlled in 1C011, to a new ‘‘items’’ 

paragraph (a.2.b) to differentiate 

between the NS controlled and MT 

controlled material. The new 

measurement criteria and other criteria 

added in 1C111.a.2 in this final rule 

clarify exactly what is controlled by 

including multiple standard reporting 

practices within the control text and 

providing examples of test methods. 

Because the MTCR partners decided to 

make the size control more specific, 

additional detail was needed to qualify 

how the size is to be ascertained and 

reported for purposes of determining 

whether such material is MT controlled. 

The new measurement criteria being 

added in this final rule will ensure the 

different testing methods currently in 

use, such as laser diffraction and sieves, 

will be applied in a consistent manner 

in determining whether such material is 

MT controlled under ECCN 1C111 or 

controlled under 1C011. As with the 

boron control, the type of metal 

powders typically exported currently 

meet the specifications of both the 

previous and the updated control text, 

and this change is not expected to have 

any impact on the number of license 

applications received by BIS. 

Paragraph (a.2.a.4) of ECCN 1C111 is 

being removed to clearly reflect the 

interpretation that alloys controlled 

would fall within the 97% weight 

requirement of paragraph (a.2.a). As a 

conforming change to the removal of 

paragraph (a.2.a.4), this rule revises 

paragraph (a.2.a.2) to add the word ‘‘or’’ 

and revises paragraph (a.2.a.3) to 

remove the word ‘‘or’’ and the 

semicolon, and replace that text and 

punctuation with a period. 

Finally, in ECCN 1C111 this rule also 

adds a new note at the end of the 

‘‘items’’ paragraph in the List of Items 

Controlled section to indicate that in a 

multimodal particle distribution (e.g., 

mixtures of different grain sizes) in 

which one or more modes are 

controlled, the entire powder mixture is 

controlled. 

ECCN 1C116 is amended by revising 

the heading and the ‘‘items’’ paragraph 

in the List of Items Controlled section 

regarding maraging steel classified 

under 1C116. (MTCR Annex Change 

Category II: Item 6.C.8., Paris 2011 

RPOC). First, the rule expands the scope 

of the control criteria to ensure that 

maraging steel that has missile 

applications is adequately enumerated 

within the scope of this ECCN. 

Specifically, this rule revises the 

heading and adds an ‘‘items’’ paragraph 

(a) and (b) in the List of Items controlled 

section to expand the scope of the 

control. 

In addition to expanding the control 

criteria, this final rule revises the 

‘‘items’’ paragraph to add new notes (a) 

and (b) to identify that maraging steels 

are iron alloys generally characterized 

by the criteria included in these notes. 

The MTCR members agreed to this 

change because maraging steel is often 

exported in the solution annealed stage 

and then further worked (i.e., processed) 

at the destination before being 

precipitation hardened. Therefore, 

maraging steel that has missile 

applications could have potentially 

avoided control, under ECCN 1C116, by 

being exported or reexported before 

being hardened into its final stage. This 

final rule addresses this missile 

proliferation concern by expanding the 

scope of 1C116 to define the ultimate 

tensile strength of maraging steel usable 

in missile applications in both the 

solution annealed stage and the 

precipitation hardened stage, and 

controlling both under 1C116. This 

expansion will result in an increase of 

one or two license applications per year, 

so the overall impact on the number of 

license applications received by BIS 

will be minimal. 

ECCN 7E004 is amended by revising 

the MT control(s) paragraph in the 

License Requirements section to 

indicate that where ‘‘technology’’ for 

equipment or systems controlled for MT 

reasons is not controlled under ECCNs 

7E001,7E002, 7E101, 7E104, and 9E101, 

it is controlled under ECCN 7E004 for 

MT reasons. (MTCR Annex Category II: 

Item 10.E.3) 

ECCN 7E004 is also amended by 

revising the ‘‘related controls’’ 

paragraph to add ECCNs 7E001, 7E002, 

7E101 and 9E101 as additional related 

controls under two new ‘‘related 

controls’’ paragraphs. Specifically, this 

rule revises the ‘‘related controls’’ under 

7E004 to include ECCNs 7E001, 7E002, 

7E101 and 7E994 as a new ‘‘Related 

Controls’’ paragraph (2). This rule also 

revises the ‘‘related controls’’ to include 

ECCNs 7E104 and 9E101 as a new 

‘‘Related Controls’’ paragraph (3), and 

adds details for when 7E104 and 9E101 

should also be reviewed for MT 

controlled technology. The remaining 

‘‘related controls’’ text in 7E004 

becomes new ‘‘Related Controls’’ 

paragraph (1). (MTCR Annex Category 

II: Item 9.E.1., 10.E.1., 10.E.2., and 

10.E.3.; CCL Conforming Change to 

MTCR Annex). This conforming change 

will result in the revision of the MT 

control on 7E004 technology. However, 

because certain portions of the MT 

control are being retained in 7E004 to 

conform to the MTCR Annex, and the 

remaining technology is controlled for 

NS reasons, the impact on the number 

of license applications received per year 

will be minimal and likely will result in 

a decrease of one or two license 

applications per year. Also as described 

above under the changes being made to 

License Exception STA, 7E004 will 

continue to be ineligible for License 

Exception STA, except for ‘‘technology’’ 

controlled under 7E004.a.7. Lastly, in 

7E004, BIS adds an STA paragraph to 

the License Exception section to make it 

explicit that License Exception STA 

may not be used for 7E004, except for 

7E004.a.7. This new STA paragraph 

conforms to the exclusion being added 

to License Exception STA under 

paragraph (b)(2)(vii) for 7E004 

‘‘technology,’’ except for ‘‘technology’’ 

controlled under 7E004.a.7. 

ECCN 9A101 is amended by revising 

the ‘‘related definitions’’ paragraph in 

the List of Items Controlled section to 

mstockstill on DSK4VPTVN1PROD with RULES

Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 42433 

add an ECCN-specific definition for 

‘maximum thrust value.’ (MTCR Annex 

Change, Category II: Item 3.A.1.a.1., 

Technical Note, Berlin 2012 Plenary). 

There is a possible discrepancy between 

the actual thrust value of an engine and 

what it is certified to, which could lead 

to certain engines used on small aircraft 

being unintentionally caught by this 

control. This definition coincides with 

the way BIS currently interprets this 

control. However, this interpretation 

was not true of all MTCR Partners and 

the addition of the note makes the 

control more uniform. This clarification 

will have no impact on the number of 

license applications received by BIS. 

ECCN 9B105 is amended by replacing 

the term wind tunnels in the heading 

with the term ‘aerodynamic test 

facilities’ (which, as noted in the new 

technical note described below, 

includes wind tunnels and shock 

tunnels), adding a note, and adding one 

technical note to the ‘‘items’’ paragraph 

in the List of Items Controlled section. 

(MTCR Annex Change, Category II: Item 

15.B.2., Berlin 2012 Plenary). The new 

note is an exclusion note specifying that 

ECCN 9B105 does not control wind 

tunnels for speeds of Mach 3 or less 

with the dimension of the test cross 

section size equal to or less than 250 

mm. This specific decontrol helps to 

clarify what is usable for rockets, 

missiles, or unmanned aerial vehicles 

capable of achieving a range equal to or 

greater than 300 km and the subsystems 

of these items. This final rule also adds 

two new technical notes to assist the 

public in understanding and applying 

the revised ECCN 9B105. The first 

technical note clarifies that 

‘aerodynamic test facilities’ includes 

wind tunnels and shock tunnels for the 

study of airflow over objects. This final 

rule adds the second technical note to 

assist the public in understanding and 

applying the new exclusion note for 

9B105 by clarifying that ‘test cross 

section size’ means the diameter of the 

circle, or the side of the square, or the 

longest side of the rectangle, or the 

major axis of the ellipse at the largest 

test cross section location. In addition, 

this second new technical note clarifies 

that the ‘test cross section’ is the section 

perpendicular to the flow direction. 

ECCN 9D004 is amended by revising 

the MT control(s) paragraph in the 

License Requirements section to 

indicate the MT control does not apply 

to this entry. This change is made to 

more closely align the scope of this MT 

control with the MTCR Annex. (No 

MTCR Annex reference is applicable to 

all of the software described in 9D004; 

CCL Conforming Change to MTCR 

Annex). This change will result in the 

removal of the MT control on 9D004 

software, as the corresponding MTCR 

Annex entry related to this control is 

already controlled in ECCN 9D104. 

However, because the 9D004 software 

remains controlled for NS reasons, the 

impact on the number of license 

applications received per year will be 

minimal, resulting in a decrease of one 

or two per year. Lastly, to alert people 

regarding other related software 

controls, 9D004 is amended by revising 

the ‘‘related controls’’ paragraph in the 

List of Items Controlled section to add 

a reference to 9D104. 

ECCN 9E101 is amended by revising 

the heading and the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section to add a reference to ECCN 

9A103. (MTCR Annex Change, Category 

II: Item 3.E.1., Paris 2011 RPOC). This 

final rule makes this change because the 

MTCR Annex was updated to include 

technology for liquid propellant tanks 

specially designed for propellants 

specified by 4.C. in the Annex or used 

in Category I rocket systems. These 

commodities and the related technology 

are ‘‘subject to the ITAR,’’ and the 

commodities are referenced on the CCL 

under 9A103. This change will have no 

impact on the number of license 

applications received by BIS because 

ECCNs 9E101 and 9A103 are both 

‘‘subject to the ITAR,’’ so the change is 

limited to updating the scope of an 

ECCN cross reference between two 

ECCNs that are ‘‘subject to the ITAR.’’ 

The heading has also been changed to 

reflect that the MT control only applies 

to 9A012 commodities that are 

themselves controlled for MT reasons. 

This change is made to more closely 

align the scope of this MT control with 

the MTCR Annex. (Category II: Item 

19.A.2., CCL Conforming Change to 

MTCR Annex). This clarification will 

have no impact on the number of 

license applications received by BIS. 

Savings Clause 

Shipments of items removed from 

eligibility for a License Exception or 

export or reexport without a license 

(NLR) as a result of this regulatory 

action that were on dock for loading, on 

lighter, laden aboard an exporting or 

reexporting carrier, or en route aboard a 

carrier to a port of export or reexport, on 

July 16, 2013, pursuant to actual orders 

for export or reexport to a foreign 

destination, may proceed to that 

destination under the previous 

eligibility for a License Exception or 

export or reexport without a license 

(NLR) so long as they are exported or 

reexported before August 15, 2013. Any 

such items not actually exported or 

reexported before midnight, on August 

15, 2013, require a license in accordance 

with this rule. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as amended by 

Executive Order 13637 of March 8, 

2013, 78 FR 16129 (March 13, 2013), 

and as extended by the Notice of August 

15, 2012, 77 FR 49699 (August 16, 

2012), has continued the EAR in effect 

under the International Emergency 

Economic Powers Act. BIS continues to 

carry out the provisions of the Export 

Administration Act, as appropriate and 

to the extent permitted by law, pursuant 

to Executive Order 13222. 

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 

determined to be not significant for 

purposes of Executive Order 12866. 

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 rule affects 

the following approved collection: 

Simplified Network Application 

Processing System (control number 

0694–0088), which includes, among 

other things, license applications and 

carries a burden estimate of 58 minutes 

for a manual or electronic submission. 

Send comments regarding these burden 

estimates or any other aspect of these 

collections of information, including 

suggestions for reducing the burden, to 

OMB Desk Officer, New Executive 

Office Building, Washington, DC 20503; 

and to Jasmeet Seehra, OMB Desk 

Officer, by email at 

Jasmeet_K._Seehra@omb.eop.gov or by 

fax to (202) 395–7285; and to the Office 

of Administration, Bureau of Industry 

and Security, Department of Commerce, 

14th and Pennsylvania Avenue NW., 

Room 6622, Washington, DC 20230. 

mstockstill on DSK4VPTVN1PROD with RULES

42434 Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

participation, and a delay in effective 

date, are inapplicable because this 

regulation involves a military and 

foreign affairs function of the United 

States (5 U.S.C. 553(a)(1)). Immediate 

implementation of these amendments 

fulfills the United States’ international 

obligations to the MTCR. The MTCR 

contributes to international security and 

regional stability by promoting greater 

responsibility in transfers of missile 

technology items, thus preventing 

destabilizing accumulations of such 

items. The MTCR consists of 34 member 

countries that act on a consensus basis 

and the changes set forth in this rule 

implement agreements reached by 

MTCR member countries at the October 

2012 Plenary in Berlin, Germany and at 

the MTCR Reinforced Point of Contact 

(RPOC) meeting in Paris, France in 

December 2011. Since the United States 

is a significant exporter of the items in 

this rule, implementation of this 

provision is necessary for the MTCR to 

achieve its purpose. Moreover, it is in 

the public’s interest to waive the notice 

and comment requirements, as any 

delay in implementing this rule will 

disrupt the movement of affected items 

globally because of disharmony between 

export control measures implemented 

by MTCR members, resulting in tension 

between member countries. Export 

controls work best when all countries 

implement the same export controls in 

a timely manner. If this rulemaking 

were delayed to allow for notice and 

comment and a 30 day delay in 

effectiveness, it would prevent the 

United States from fulfilling its 

commitment to the MTCR in a timely 

manner, would injure the credibility of 

the United States in this and other 

multilateral regimes, and may impair 

the international communities’ ability to 

effectively control the export of certain 

potentially national- and internationalsecurity-threatening materials. 

Further, no other law requires that a 

notice of proposed rulemaking and an 

opportunity for public comment be 

given for this final rule. Because a 

notice of proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule under 

the Administrative Procedure Act or by 

any other law, the analytical 

requirements of the Regulatory 

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

not applicable. Therefore, this 

regulation is issued in final form. 

List of Subjects 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 772 

Exports. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, parts 740, 772 and 774 

of the Export Administration 

Regulations (15 CFR parts 730–774) are 

amended as follows: 

PART 740—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 740 continues to read as follows: 

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

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

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

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

Comp., p. 783; Notice of August 15, 2012, 77 

FR 49699 (August 16, 2012). 

■ 2. Section 740.20 is amended: 

■ a. By redesignating paragraphs 

(b)(2)(vii) through (b)(2)(ix) as 

paragraphs (b)(2)(viii) through (b)(2)(x); 

and 

■ b. By adding paragraph (b)(2)(vii) to 

read as follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

* * * * * 

(b) * * * 

(2) * * * 

(vii) Commerce Control List Category 

7 limitation on use of License Exception 

STA. License Exception STA may not be 

used for 7E004 ‘‘technology,’’ except for 

‘‘technology’’ controlled under 

7E004.a.7. 

* * * * * 

PART 772—[AMENDED] 

■ 3. The authority citation for 15 CFR 

part 772 continues to read as follows: 

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

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

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

15, 2012, 77 FR 49699 (August 16, 2012). 

■ 4. Section 772.1 is amended by 

revising Technical Notes b of the 

‘‘payload’’ definition as set forth below: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

* * * * * 

Payload. * * * 

TECHNICAL NOTES: 

a. * * * 

b. Space Launch Vehicles—‘‘Payload’’ 

includes: 

1. Spacecraft (single or multiple), 

including satellites; 

2. Spacecraft-to-launch vehicle 

adapters including, if applicable, 

apogee/perigee kick motors or similar 

maneuvering systems; 

* * * * * 

PART 774—[AMENDED] 

■ 5. The authority citation for 15 CFR 

part 774 continues to read as follows: 

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

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

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

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

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

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

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

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

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

Comp., p. 783; Notice of August 15, 2012, 77 

FR 49699 (August 16, 2012). 

■ 6. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms’’ and ‘‘Toxins,’’ Export 

Control Classification Number (ECCN) 

1C011 is amended: 

■ a. By revising the heading; and 

■ b. By revising the ‘‘MT’’ paragraph in 

the License Requirements section to 

read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

1C011 Metals and compounds, other than 

those specified in 1C111, as follows (see 

List of Items Controlled). 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

*****

MT applies to 

1C011.a and .b for 

items that meet or 

exceed the parameters in 1C111.

MT Column 1. 

*****

* * * * * 

■ 7. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms’’ and ‘‘Toxins,’’ Export 

Control Classification Number (ECCN) 

1C111 is amended: 

■ a. By revising ‘‘items’’ paragraphs a.1, 

introductory text of paragraph a.2, 

paragraph a.2.a.2 and paragraph a.2.a.3 

in the List of Items Controlled section; 

mstockstill on DSK4VPTVN1PROD with RULES

Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 42435 

■ b. By removing ‘‘items’’ paragraph 

a.2.a.4 in the List of Items Controlled 

section; 

■ c. By adding ‘‘items’’ paragraph a.2.b 

in the List of Items Controlled section; 

and 

■ d. By adding a note to at the end of 

the ‘‘items’’ paragraph in the List of 

Items Controlled section after ‘‘items’’ 

paragraph c.5 to read as follows: 

1C111 Propellants and constituent 

chemicals for propellants, other than 

those specified in 1C011, as follows (see 

List of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Items: 

* * * * * 

a.1. Spherical or spheroidal aluminum 

powder in particle of size of less than 200 x 

10¥6 m (200 mm) and with an aluminum 

content of 97% by weight or more, if at least 

10% of the total weight is made up of 

particles of less than 63 mm, according to ISO 

2591:1988 or national equivalents. 

Technical Note: * * * 

a.2. Metal powders and alloys where at 

least 90% of the total particles by particle 

volume or weight are made up of particles of 

less than 60 mm (determined by measurement 

techniques such as using a sieve, laser 

diffraction or optical scanning), whether 

spherical, atomized, spheroidal, flaked or 

ground, as follows: 

* * * * * 

a.2.a.2. Beryllium; or 

a.2.a.3. Magnesium. 

a.2.b Boron or boron alloys with a boron 

content of 85% or more by weight. 

Technical Note: * * * 

* * * * * 

Note: In a multimodal particle distribution 

(e.g., mixtures of different grain sizes) in 

which one or more modes are controlled, the 

entire powder mixture is controlled. 

■ 8. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

1—Special Materials and Related 

Equipment, Chemicals, 

‘‘Microorganisms’’ and ‘‘Toxins,’’ Export 

Control Classification Number (ECCN) 

1C116 is amended: 

■ a. By revising the heading; 

■ b. By revising the ‘‘items’’ paragraph 

in the List of Items Controlled section; 

and 

■ c. By adding a new ‘‘technical note’’ 

to the ‘items’’ paragraph in the List of 

Items Controlled section to read as 

follows: 

1C116 Maraging steels having both of the 

following (see List of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Items: 

a. Having an ultimate tensile strength, 

measured at 20°C, equal to or greater than: 

a.1. 0.9 GPa in the solution annealed stage; 

or 

a.2. 1.5 GPa in the precipitation hardened 

stage; and 

b. Any of the following forms: 

b.1 Sheet, plate or tubing with a wall or 

plate thickness equal to or less than 5.0 mm; 

or 

b.2 Tubular forms with a wall thickness 

equal to or less than 50 mm and having an 

inner diameter equal to or greater than 270 

mm. 

Technical Note: 

Maraging steels are iron alloys that are 

generally: 

a. Characterized by high nickel, very low 

carbon content and use substitutional 

elements or precipitates to produce 

strengthening and age-hardening of the alloy; 

and 

b. Subjected to heat treatment cycles to 

facilitate the martensitic transformation 

process (solution annealed stage) and 

subsequently age hardened (precipitation 

hardened stage). 

■ 9. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

7—Navigation and Avionics, Export 

Control Classification Number (ECCN) 

7E004 is amended: 

■ a. By revising the ‘‘MT’’ paragraph in 

the License Requirements section; 

■ b. By adding a License Exception STA 

paragraph at the end of the License 

Exceptions section; and 

■ c. By revising the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section, to ready as follows. 

7E004 Other ‘‘technology’’ as follows (see 

List of Items Controlled). 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

*****

MT applies to ‘‘technology’’ for equipment or systems 

controlled for MT 

reasons.

MT Column 1. 

*****

License Exceptions 

* * * * * 

STA: (1) Paragraph (c)(1) of License 

Exception STA (§ 740.20(c)(1) of the EAR) 

may not be used for 7E004, except for 

7E004.a.7. (2) Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2) of the EAR) 

may not be used for 7E004, except for 

7E004.a.7. 

List of Items Controlled 

* * * * * 

Related Controls: (1) See 0D521 No. 2 

(‘‘source code’’ for the ‘‘development’’ of 

fly-by-wire control systems), 0E521 No. 6 

(for ‘‘technology’’ for the ‘‘development’’ of 

‘‘software’’ controlled by 0D521 No. 2). (2) 

See also 7E001, 7E002, 7E101, and 7E994. 

(3) In addition to the Related Controls in 

7E001, 7E002, and 7E101 that include MT 

controls, also see the MT controls in 7E104 

for design ‘‘technology’’ for the integration 

of the flight control, guidance, and 

propulsion data into a flight management 

system, designed or modified for rockets or 

missiles capable of achieving a ‘‘range’’ 

equal to or greater than 300 km, for 

optimization of rocket system trajectory; 

and also see 9E101 for design ‘‘technology’’ 

for integration of air vehicle fuselage, 

propulsion system and lifting control 

surfaces, designed or modified for 

unmanned aerial vehicles capable of 

achieving a ‘‘range’’ equal to or greater than 

300 km, to optimize aerodynamic 

performance throughout the flight regime 

of an unmanned aerial vehicle. 

* * * * * 

■ 10. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9A101 is amended: 

■ a. By revising the ‘‘related 

definitions’’ paragraph in the List of 

Items Controlled section; and 

■ b. By adding single quotes around the 

phrase ‘maximum thrust value’ in 

‘‘items’’ paragraph a.1 in the List of 

Items Controlled section to read as 

follows: 

9A101 Turbojet and turbofan engines, other 

than those controlled by 9A001, as follows 

(see List of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Definitions: ‘Maximum thrust value’ 

in 9A101.a.1 is the manufacturer’s 

demonstrated maximum thrust for the 

engine type un-installed. The civil type 

certified thrust value will be equal to or 

less than the manufacturer’s demonstrated 

maximum thrust for the engine type. 

* * * * * 

■ 11. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9B105 is amended: 

■ a. By revising the heading; and 

■ b. By adding a new ‘‘note’’ and two 

new ‘‘technical notes’’ to the end of the 

‘items’’ paragraph in the List of Items 

Controlled section to read as follows: 

9B105 ‘Aerodynamic test facilities’ for 

speeds of Mach 0.9 or more, usable for 

rockets, missiles, or unmanned aerial 

vehicles capable of achieving a ‘‘range’’ 

equal to or greater than 300 km and 

their subsystems. 

* * * * * 

List of Items Controlled 

* * * * * 

mstockstill on DSK4VPTVN1PROD with RULES

42436 Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 

Items: * * * 

Note: 9B105 does not control wind tunnels 

for speeds of Mach 3 or less with the 

dimension of the ‘test cross section size’ 

equal to or less than 250 mm. 

Technical Notes: 

1. ‘Aerodynamic test facilities’ includes 

wind tunnels and shock tunnels for the study 

of airflow over objects. 

2. ‘Test cross section size’ means the 

diameter of the circle, or the side of the 

square, or the longest side of the rectangle, 

or the major axis of the ellipse at the largest 

‘test cross section’ location. ‘Test cross 

section’ is the section perpendicular to the 

flow direction. 

■ 12. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9D004 is amended: 

■ a. By removing the ‘‘MT’’ paragraph in 

the License Requirements section; and 

■ b. By revising the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section to read as follows: 

9D004 Other ‘‘software’’ as follows (see List 

of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See also 9D104. 

* * * * * 

■ 13. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9E101 is amended: 

■ a. By revising the heading; and 

■ b. By revising the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section to read as follows: 

9E101 ‘‘Technology’’ according to the 

General Technology Note for the 

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

of commodities or software controlled 

by 9A012 (for MT controlled 

commodities only), 9A101, 9A103 to 

9A111, 9A115 to 9A119, 9C110, 9D101, 

9D103, 9D104 or 9D105. 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: ‘‘Technology’’ controlled 

by 9E101 for items in 9A101.b, 9A103 to 

9A111, 9A115 to 9A119, 9D103, and 9D105 

is ‘‘subject to the ITAR’’ (see 22 CFR parts 

120 through 130). 

* * * * * 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2013–16954 Filed 7–15–13; 8:45 am] 

BILLING CODE 3510–33–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 43 

RIN 3038–AD08 

Procedures To Establish Appropriate 

Minimum Block Sizes for Large 

Notional Off-Facility Swaps and Block 

Trades; Correction 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rule; correction. 

SUMMARY: The Commodity Futures 

Trading Commission is correcting a 

final rule that appeared in the Federal 

Register of May 31, 2013 (78 FR 32866). 

The final rule adopted regulations, 

under the Dodd-Frank Wall Street 

Reform and Consumer Protection Act, 

defining the criteria for grouping swaps 

into separate swap categories and 

establishing methodologies for setting 

appropriate minimum block sizes for 

each swap category. These corrections 

fix errors in certain contract 

descriptions, block sizes, and block 

units listed in Appendix F to the final 

rule. 

DATES: Effective date: July 30, 2013. 

FOR FURTHER INFORMATION CONTACT: John 

W. Dunfee, Assistant General Counsel, 

Office of the General Counsel, 

Commodity Futures Trading 

Commission, Three Lafayette Center, 

1155 21st Street, NW., Washington, DC 

20581; 202–418–5396; jdunfee@cftc.gov. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2013–12133 appearing on page 32866 in 

the Federal Register of Friday, May 31, 

2013, the following correction is made: 

Appendix F to Part 43—Initial 

Appropriate Minimum Block Sizes by 

Asset Class for Block Trades and Large 

Notional Off-Facility Swaps [Corrected] 

1. On page 32942, in the third 

column, in Appendix F to Part 43— 

Initial Appropriate Minimum Block 

Sizes by Asset Class for Block Trades 

and Large Notional Off-Facility Swaps, 

correct Appendix F by removing all of 

the tables published on pages 32942 

through 32944 and adding the following 

corrected tables in their place: 

Currency group Currencies 

Super-Major Currencies .............. United States dollar (USD), European Union Euro Area euro (EUR), United Kingdom pound sterling (GBP), 

and Japan yen (JPY). 

Major Currencies ......................... Australia dollar (AUD), Switzerland franc (CHF), Canada dollar (CAD), Republic of South Africa rand (ZAR), 

Republic of Korea won (KRW), Kingdom of Sweden krona (SEK), New Zealand dollar (NZD), Kingdom of 

Norway krone (NOK), and Denmark krone (DKK). 

Non-Major Currencies ................. All other currencies. 

INTEREST RATE SWAPS

Currency group Tenor greater than Tenor less than or equal to 50% Notional 

(in millions) 

Super-Major ................................. ...................................................................... 46 days ........................................................ 6,400 

Super-Major ................................. 46 days ........................................................ Three months (107 days) ............................ 2,100 

Super-Major ................................. Three months (107 days) ............................ Six months (198 days) ................................ 1,200 

Super-Major ................................. Six months (198 days) ................................ One year (381 days) ................................... 1,100 

Super-Major ................................. One year (381 days) ................................... Two years (746 days) ................................. 460 

Super-Major ................................. Two years (746 days) ................................. Five years (1,842 days) .............................. 240 

Super-Major ................................. Five years (1,842 days) .............................. Ten years (3,668 days) ............................... 170 

Super-Major ................................. Ten years (3,668 days) ............................... 30 years (10,973 days) ............................... 120 

Super-Major ................................. 30 years (10,973 days) ............................... ...................................................................... 67 

Major ............................................ ...................................................................... 46 days ........................................................ 2,200 

Major ............................................ 46 days ........................................................ Three months (107 days) ............................ 580 

Major ............................................ Three months (107 days) ............................ Six months (198 days) ................................ 440 

Major ............................................ Six months (198 days) ................................ One year (381 days) ................................... 220 

mstockstill on DSK4VPTVN1PROD with RULES