Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 31431 

the Central Service Center, 2601 

Meacham Blvd., Fort Worth, TX 76137. 

Persons interested in being placed on 

a mailing list for future NPRMs should 

contact the FAA’s Office of Rulemaking 

202–267–9677, to request a copy of 

Advisory Circular No. 11–2A, Notice of 

Proposed Rulemaking Distribution 

System, which describes the application 

procedure. 

The Proposal 

This action proposes to amend Title 

14, Code of Federal Regulations (14 

CFR), part 71 by establishing Class E 

airspace extending upward from 700 

feet above the surface within an 8-mile 

radius of Wagner Municipal Airport, 

Wagner, SD, to accommodate new 

standard instrument approach 

procedures at the airport. Controlled 

airspace is needed for the safety and 

management of IFR operations at the 

airport. 

Class E airspace areas are published 

in Paragraph 6005 of FAA Order 

7400.9W, dated August 8, 2012 and 

effective September 15, 2012, which is 

incorporated by reference in 14 CFR 

71.1. The Class E airspace designation 

listed in this document would be 

published subsequently in the Order. 

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. It, 

therefore, (1) is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866; (2) is not a ‘‘significant 

rule’’ under 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 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 U.S. Code. Subtitle 1, 

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 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 would 

establish controlled airspace at Wagner 

Municipal Airport, Wagner, SD. 

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 7400.9W, 

Airspace Designations and Reporting 

Points, dated August 8, 2012, and 

effective September 15, 2012, is 

amended as follows: 

Paragraph 6005 Class E Airspace areas 

extending upward from 700 feet or more 

above the surface of the earth. 

* * * * * 

AGL SD E5 Wagner, SD [New] 

Wagner Municipal Airport, SD 

(Lat. 43°03′51′′ N., long. 98°17′47′′ W.) 

That airspace extending upward from 700 

feet above the surface within an 8-mile radius 

of Wagner Municipal Airport. 

Issued in Fort Worth, TX on April 11, 

2013. 

David P. Medina, 

Manager, Operations Support Group, ATO 

Central Service Center. 

[FR Doc. 2013–12479 Filed 5–23–13; 8:45 am] 

BILLING CODE 4901–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 734, 736, 740, 742, 748, 

758, 772, and 774 

[Docket No. 130110030–3030–01] 

RIN 0694–AF87 

Export Administration Regulations 

(EAR): Control of Spacecraft Systems 

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 certain articles the President 

determines no longer warrant control 

under United States Munitions List 

(USML) Category XV—spacecraft and 

related items—would be controlled on 

the Commerce Control List (CCL). Such 

items would be controlled by new 

Export Control Classification Numbers 

(ECCNs) 9A515, 9B515, 9D515, and 

9E515 proposed by this rule and 

existing ECCNs. This is one 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 

proposed rule from the Department of 

State, Directorate of Defense Trade 

Controls, which would amend the list of 

articles controlled by USML Category 

XV. The revisions proposed in this rule 

are part of Commerce’s retrospective 

regulatory review plan under EO 13563 

completed in August 2011. 

DATES: Comments must be received by 

July 8, 2013. 

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– 

2013–0012. 

• By email directly to 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF87 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–AF87. 

Commerce’s full plan can be accessed 

at: http://open.commerce.gov/news/ 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
31432 Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 

2011/08/23/commerce-planretrospective-analysis-existing-rules. 

FOR FURTHER INFORMATION CONTACT: For 

questions about the ECCNs included in 

this rule contact Dennis Krepp, Office of 

National Security and Technology 

Transfer Controls, Bureau of Industry 

and Security, U.S. Department of 

Commerce, Telephone: 202–482–1309, 

Email: Dennis.Krepp@bis.doc.gov. For 

general questions about the ‘‘500 series’’ 

regulatory changes, contact Robert 

Monjay, Regulatory Policy Division, 

Office of Exporter Services, Bureau of 

Industry and Security, at 202–482–2440 

or Robert.Monjay@bis.doc.gov. 

SUPPLEMENTARY INFORMATION:

Background 

On January 2, 2013, President Obama 

signed the National Defense 

Authorization Act for Fiscal Year 2013 

(‘‘2013 NDAA’’) (Pub. L. 112–239). 

Section 1261 of the 2013 NDAA 

amended Section 1513 of the Strom 

Thurmond National Defense 

Authorization Act for Fiscal Year 1999 

(‘‘1999 NDAA’’) by striking the 

requirement that all satellites and 

related items be subject to the export 

control jurisdiction of the International 

Traffic in Arms Regulations (ITAR) (22 

CFR parts 120 through 130). The 

President is now authorized and 

obligated, pursuant to section 38(f) of 

the Arms Export Control Act (AECA) (22 

U.S.C. 2778(f)), to review the USML ‘‘to 

determine what items, if any, no longer 

warrant export controls under’’ the 

AECA. 

This notice requests public comment 

on the changes described in this 

proposed rule and the corresponding 

State Department’s proposed revisions 

to the ITAR. These rulemakings are the 

Administration’s first step in 

implementing the authorities returned 

to the President by the 2013 NDAA to 

determine the proper and more tailored 

controls over the export of satellites and 

related items as recommended by the 

Departments of Defense (DOD) and 

State. These two proposed rules are part 

of the Administration’s larger Export 

Control Reform effort described, inter 

alia, in the Commerce Department’s July 

15, 2011 proposed rule (76 FR 41958) 

(‘‘July 15 (framework) rule’’) setting up 

a structure to control in the EAR items 

that the President determines no longer 

warrant control under the ITAR in 

accordance with section 38(f) of the 

AECA. On November 7, 2011, BIS 

published a proposed rule (76 FR 

68675) (‘‘November 7 (aircraft) rule’’) 

that proposed several changes to the 

framework in the July 15 proposed rule. 

On June 19, 2012, BIS published a 

proposed rule to define the term 

‘‘specially designed’’ (77 FR 36409) 

(‘‘the June 19 (specially designed) 

rule’’). On June 21, 2012, BIS published 

a rule entitled Proposed Revisions to the 

Export Administration Regulations: 

Implementation of Export Control 

Reform; Revisions to License Exceptions 

After Retrospective Regulatory Review, 

(77 FR 37524) (‘‘the June 21 (transition) 

rule’’). Readers may find it useful to 

review these four proposed rules when 

preparing their comments on this 

proposed rule. Generally following the 

structure of the July 15 (framework) and 

the November 7 (aircraft) rules, this 

proposed rule describes BIS’s proposal 

for controlling under the EAR’s CCL the 

‘‘spacecraft’’ and related articles now 

controlled under Category XV of the 

ITAR’s United States Munitions List (22 

CFR part 121) (USML) that would not be 

controlled under the revised USML 

Category XV. 

In March 2012, the Departments of 

Defense and State filed with Congress 

their ‘‘Final Report’’ required by section 

1248 of the National Defense 

Authorization Act of Fiscal Year 2010. 

See http://www.defense.gov/home/ 

features/2011/0111_nsss/docs/ 

1248_Report_Space_Export_Control.pdf 

(the ‘‘1248 Report’’). The 1248 Report 

identified the types of satellites and 

related items that should not be 

designated as ‘‘defense articles’’ 

controlled under the ITAR. ‘‘For the 

sake of national and economic security, 

the Departments recommend[ed] that 

authority to determine the appropriate 

export control status of satellites and 

space-related items be returned to the 

President.’’ Id. The changes described in 

this proposed rule and in the State 

Department’s companion proposed rule 

on Category XV of the USML are based 

on a review of Category XV by the 

Defense Department, which, as 

described in the 1248 Report, worked 

with the Departments of State and 

Commerce in preparing the proposed 

amendments. 

The Defense Department reviewed the 

articles in Category XV to determine 

which are either (i) inherently military 

and otherwise warrant control on the 

USML or (ii) if, common to non-military 

space 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. All other satellites and 

related items are, pursuant to the State 

and Commerce Department notices, 

proposed to move to the export control 

jurisdiction of the EAR. The licensing 

requirements and other EAR-specific 

controls for such items described in this 

notice would enhance national security 

by 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 NATO allies and 

other multi-regime partners. 

In the July 15 (framework) rule, BIS 

proposed creating a ‘‘600 series’’ for the 

new ECCNs to control the munitions 

items that would be removed from the 

USML and items currently on the CCL 

that are also on the Wassenaar 

Arrangement Munitions List (WAML). 

This rule proposes to create a new ‘‘500 

series’’ of ECCNs to control ‘‘spacecraft’’ 

systems and associated equipment that 

would be removed from the USML. This 

new series would be created for 

‘‘spacecraft’’ systems and associated 

equipment because, although these 

items are currently on the USML, many 

of them are commercial items with no 

military or intelligence applications, 

such as commercial communications 

satellites. It would be inappropriate to 

include these types of items in the ‘‘600 

series,’’ which is, by definition, 

comprised of munitions items. 

Additionally, because many items 

proposed to be moved in this rule do 

have military or intelligence 

applications, it would be unnecessarily 

complicated and confusing to move 

certain ‘‘spacecraft’’ systems and 

associated equipment to new ‘‘600 

series’’ ECCNs while moving the 

commercial items to existing ECCNs. 

The creation of a new series would 

provide a place for ‘‘spacecraft’’ systems 

and associated equipment transferred 

from the USML, and would allow BIS to 

apply the appropriate controls to these 

items. The new series would be 

identified as the ‘‘500 series’’ because 

the third character in each of the new 

ECCNs would be a ‘‘5.’’ The first two 

characters of the 500 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. 

In addition, it would be inappropriate to 

put these new controls in one of the 

multilateral controls of the CCL, such as 

the ‘‘000 series’’ for items controlled 

under the Wassenaar Arrangement, 

because none of the items described in 

proposed ECCN 9x515 in this notice are 

exclusively subject to multilateral 

United States controls. 

Although the items in the proposed 

new 9x515 ECCNs would not be listed 

in the 600 series, the order of review for 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 31433 

the new ECCNs is similar to that for 600 

series ECCNs. That is, when 

determining whether an item that is 

now controlled under USML Category 

XV would be controlled on the EAR if 

it is not within the scope of the revised 

USML Category XV, one must first look 

to the 9x515 ECCNs. Only if it is not 

controlled in one of the new ECCNs 

would one then look to the remaining 

ECCNs in the CCL to determine whether 

the item is on the CCL or, if not, an 

EAR99 item. The order of review 

guidance in Supplement No. 4 to Part 

774 is proposed to be amended 

accordingly. 

The ECCNs created in this rule would 

begin with ‘‘9,’’ because that is the 

corresponding CCL category for controls 

on ‘‘spacecraft.’’ The second character is 

a letter in the range A through E that 

identifies the product group within a 

CCL Category. In the ‘‘500 series,’’ the 

third character is the number 5. The 

final two characters of the ECCNs would 

be fifteen to identify the corresponding 

USML category that had covered the 

items in the new ECCN. The ECCNs that 

would be created or revised by this 

proposed rule are described more fully 

below. 

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. 

The revisions proposed in this rule 

are part of Commerce’s retrospective 

regulatory review plan under EO 13563 

completed in August 2011. Commerce’s 

full plan can be accessed at: http:// 

open.commerce.gov/news/2011/08/23/ 

commerce-plan-retrospective-analysisexisting-rules. 

Detailed Description of Changes 

Proposed by This Rule 

This rule proposes changes to the text 

of the EAR as modified by the Initial 

Implementation Rule of April 16, 2013 

(78 FR 22660). BIS made changes to the 

EAR in the Initial Implementation Rule 

that provide the framework for the ‘‘500 

series.’’ The changes made to the EAR 

in the Initial Implementation Rule will 

be effective on October 15, 2013. 

New 9X515 Series of ECCNs 

This proposed rule would create four 

new ‘‘500 series’’ ECCNs in CCL 

Category 9 (ECCNs 9A515, 9B515, 

9D515, and 9E515) to describe the EAR 

controls over the items the President 

determines no longer warrant control 

under the USML Category XV and that 

are not otherwise within the scope of an 

existing ECCN. Terms such as ‘‘part’’ 

and ‘‘component’’ and ‘‘accessories’’ 

and ‘‘attachments’’ are applied in the 

same manner in this rule as those terms 

are defined in the Initial 

Implementation Rule of April 16, 2013 

(78 FR 22660). This rule would also add 

a new definition for the ‘‘500 series’’ to 

§ 772.1. The new ‘‘500 series’’ would 

not include the International Space 

Station, which remains under ECCN 

9A004. 

This rule also proposes to amend the 

related controls paragraph of eighteen 

ECCNs—i.e., 3A001, 3A002, 3A611, 

3D001, 3E001, 3E003, 5A001, 5A991, 

5E001, 6A002, 6A004, 6D001, 6D002, 

6E001, 6E002, 7A004, 7A104 and 

9A004. The cross references to the 

USML for items listed in the proposed 

USML Category XV would be revised. 

The cross references to the USML for 

items that are proposed to transition 

from Category XV of the USML would 

be removed. This rule additionally 

proposes to remove paragraph .b from 

the List of Items Controlled in ECCN 

9A004. Paragraph .b was added to the 

CCL on March 15, 1999, when all 

satellites, including commercial 

communications satellites, and related 

items were transferred to the USML 

pursuant to the 1999 NDAA. 

Paragraph .b provided a space on the 

CCL to control specific ‘‘spacecraft’’ 

related items that were determined to be 

not subject to the ITAR through the 

commodity jurisdiction procedure 

administered by the Department of 

State. The new ‘‘500 series’’ ECCNs, 

specifically 9A515, would control all 

‘‘spacecraft’’ and related items that are 

not otherwise enumerated on the USML 

or CCL. Therefore, it is appropriate to 

delete 9A004.b and bring these 

‘‘spacecraft’’ related items into the orbit 

of 9A515. 

New ECCN 9X515 

Proposed ECCN 9A515 paragraph .a 

would control ‘‘spacecraft,’’ including 

satellites, manned or unmanned space 

vehicles, whether designated 

developmental, experimental, research 

or scientific, not enumerated in USML 

Category XV. Paragraph 9A515.b would 

control ground control systems and 

training simulators ‘‘specially designed’’ 

for telemetry, tracking, and control of 

the ‘‘spacecraft’’ in paragraph 9A515.a. 

Paragraph .c would be reserved. 

Paragraph .d would control certain 

radiation hardened microelectronic 

circuits that are ‘‘specially designed’’ for 

defense articles on the USML, ‘‘600 

series’’ items, or items controlled by 

9A515 that meet or exceed five specific 

characteristics. A reminder note is 

proposed for ECCN 9A515.d to state that 

application specific integrated circuits 

(ASICs) ‘‘specially designed’’ for 

defense articles are controlled by 

Category XI(c) of the USML, regardless 

of characteristics. A second note is 

proposed for ECCN 9A515.d that ‘‘space 

qualified’’ microelectronic circuits that 

do not meet the radiation-hardening or 

other criterion of 9A515.d are controlled 

by ECCN 9A515.x. A third note is 

proposed for ECCN 9A515.d to refer to 

controls in 3A001.a for microelectronic 

circuits that are ‘‘subject to the EAR’’ 

and not controlled by 9A515. A fourth 

note is proposed for ECCN 9A515.d to 

state that microelectronic circuits 

‘‘specially designed’’ for defense articles 

on the USML (other than Category XV) 

or ‘‘600 series’’ items that do not meet 

the radiation hardening criteria of 

paragraph .d would be controlled by the 

proposed ‘‘600 series’’ ECCN 3A611. 

Paragraphs .e through .w would be 

reserved. 

Paragraph .x would control ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ and 

‘‘attachments’’ that are ‘‘space 

qualified’’ and not controlled on the 

USML, elsewhere within ECCN 9A515, 

or in one of the existing ECCNs that has 

‘‘space qualified’’ as a control criterion. 

A note is proposed for ECCN 9A515.x to 

remind readers that ‘‘parts,’’ 

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

‘‘attachments’’ specified in USML 

subcategory XV(e) or enumerated in 

other USML categories are subject to the 

controls of the USML. 

New ECCN 9B515 

Proposed ECCN 9B515 paragraph .a 

would control test, inspection, and 

production ‘‘equipment’’ ‘‘specially 

designed’’ for the ‘‘production’’ or 

‘‘development’’ of commodities 

enumerated in ECCN 9A515 or USML 

Category XV. 

Paragraph .b would control 

‘‘equipment,’’ cells, and stands 

‘‘specially designed’’ for testing, 

analysis and fault isolation of 

commodities enumerated in ECCN 

9A515, 9A004 or USML Category XV. 

Paragraph .c would control 

environmental test chambers capable of 

pressures below (10¥4) Torr, and 

‘‘specially designed’’ ‘‘components’’ 

therefor. 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
31434 Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 

New ECCN 9D515 

Proposed ECCN 9D515 would control 

‘‘software’’ ‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishing of 

commodities controlled by ECCNs 

9A515 and 9B515. 

New ECCN 9E515 

Proposed ECCN 9E515 paragraph .a 

would control ‘‘technology’’ ‘‘required’’ 

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

operation, installation, maintenance, 

repair, overhaul or refurbishing of items 

controlled by ECCN 9A515, 9B515, or 

9D515. 

The appendix to the 1248 Report 

referred to a possible need to control 

technology required for passenger 

participation in space travel (e.g., suborbital, orbital, lunar, interplanetary or 

habitat) for space tourism, research or 

scientific endeavors, or transportation 

from one point to another for 

commercial purposes. The Departments 

of Defense and State have since 

reviewed such technology and 

concluded that it is not per se now 

subject to USML Category XV. There is 

thus no proposed inclusion of such 

technology as a general matter in either 

the proposed USML Category XV or the 

proposed 9E515. To the extent other 

technology described in either the 

proposed USML XV or 9E515 would be 

released to a foreign person during such 

activities, then it would be controlled 

according to the requirements of the 

relevant paragraph. 

Applicable controls for new ‘‘500 

series’’ ECCNs. 

All items in the 9X515 ECCNs, as 

proposed in this rule, would be subject 

to national security (NS Column 1) and 

regional stability (RS Column 1) 

controls, as well as antiterrorism (AT 

Column 1) controls. Some of the items 

would be subject to missile technology 

(MT) controls in some cases. The 

licensing policy would be a case-by-case 

review to determine whether the 

transaction is contrary to the national 

security or foreign policy interests of the 

United States. However, applications for 

‘‘500 series’’ items destined to a country 

listed in Country Group D:5 

(Supplement No. 1 to Part 740) as a 

country subject to a U.S. arms embargo 

will be reviewed consistent with United 

States arms embargo policies. Country 

Group D:5 (Supplement No. 1 to Part 

740) is set out in the Initial 

Implementation Rule of April 16, 2013 

(78 FR 22660). The U.S. Government 

has long considered U.S. arms embargo 

policies when reviewing license 

applications to export items subject to 

the EAR. BIS has now explicitly stated 

that the review policy for all ‘‘600 

series’’ items will be consistent with 

U.S. arms embargos. DOD and the State 

Department recommended in the 1248 

Report to Congress that BIS explicitly 

adopt this review policy for items 

transitioning from the USML to ensure 

that exporters are aware that all items 

subject to embargo remain so on the 

CCL. BIS agrees with this 

recommendation and would amend 

§§ 742.4(b)(1)(ii) and 742.6(b)(1) to add 

the term ‘‘500 series.’’ Additionally, as 

required by Section 1261 of the 2013 

NDAA, applications for ‘‘500 series’’ 

items destined to the People’s Republic 

of China, North Korea, or any country 

that is a state sponsor of terrorism, 

would be subject to a policy of denial. 

‘‘Space-Qualified’’ 

In December 2012, the Wassenaar 

Arrangement on Export Controls for 

Conventional Arms and Dual-Use Goods 

and Technologies (‘‘Wassenaar 

Arrangement’’) amended its definition 

of ‘‘space-qualified’’ to be ‘‘[d]esigned, 

manufactured, or qualified through 

successful testing, for operation at 

altitudes greater than 100 km above the 

surface of the Earth. Note: A 

determination that a specific item is 

‘‘space qualified’’ by virtue of testing 

does not mean that other items in the 

same production run or model series are 

‘‘space qualified’’ if not individually 

tested.’’ BIS plans to adopt this 

definition in the EAR when it publishes 

its amendments to the EAR to 

implement the amendments agreed to 

by the Wassenaar Arrangement. To 

comment on the proposed changes to 

the EAR in this notice that pertain to the 

meaning of ‘‘space-qualified,’’ the 

public should use the above definition. 

The Wassenaar Arrangement adopted 

the revised definition after the 

Departments of State and Defense 

submitted to Congress the 1248 Report, 

describing the proposed controls on 

‘‘space qualified’’ items not controlled 

elsewhere. In addition, the revised 

definition was adopted after the U.S. 

Government had received and 

considered public comments on its 

proposed definition of ‘‘specially 

designed,’’ which would be the control 

parameter in its other ‘‘.x’’ catch-all 

controls. In order to (i) maintain the 

‘‘space qualified’’ control scope 

described in the 1248 Report, (ii) 

maintain consistency between this 

catch-all control and the other ‘‘space 

qualified’’ controls in the CCL, and (iii) 

limit the ambiguity between the scope 

of this catch-all approach and the other 

new ‘‘.x’’ catch-alls that use ‘‘specially 

designed,’’ BIS is proposing the addition 

of a note to the new ‘‘space qualified’’ 

definition. The note would state that, for 

purposes of these controls, the terms 

‘designed’ and ‘manufactured’ in the 

Wassenaar’s definition of ‘‘space 

qualified’’ are synonymous with the 

EAR’s new definition of ‘‘specially 

designed.’’ Thus, for example, an item 

that is ‘‘specially designed’’ for a 

spacecraft is deemed to be ‘designed’ or 

‘manufactured’ for operation at altitudes 

greater than 100 km and an item that is 

not ‘‘specially designed’’ for a spacecraft 

is not deemed to have been so 

‘designed’ or ‘manufactured.’ An 

implication of this note would be that 

an item that becomes ‘‘space qualified’’ 

by virtue of successful testing would be 

‘‘space qualified’’ regardless of whether 

it would be considered ‘‘specially 

designed.’’ This note does not constitute 

a modification of the Wassenaar 

definition of the term, only a comment 

about how it is relates to the EAR’s 

definition of ‘‘specially designed.’’ 

Effects of This Proposed Rule 

De minimis 

Items made outside the United States 

that incorporate items subject to the 

EAR are subject to the EAR if they 

exceed a de minimis percentage of 

controlled U.S.-origin content, as 

described in § 734.3 of the EAR. The 

Initial Implementation Rule of April 16, 

2013 (78 FR 22660) established the de 

minimis threshold for a foreign-made 

item that incorporates U.S.-origin ‘‘600 

series’’ items at zero percent when the 

foreign-made item is destined for a 

country subject to a U.S. arms embargo 

and 25 percent for destinations that are 

not subject to a U.S. arms embargo. This 

rule proposes to adopt the same de 

minimis thresholds for the ‘‘500 series’’ 

as is proposed for the ‘‘600 series.’’ 

Foreign-made items that incorporate any 

amount of U.S.-origin ‘‘500 series’’ items 

would be subject to the EAR when 

destined to a country that is subject to 

a U.S. arms embargo (i.e., Afghanistan, 

Belarus, Burma, China, Cote d’Ivoire, 

Cuba, Cyprus, Democratic Republic of 

Congo, Eritrea, Fiji, Haiti, Iraq, Iran, 

Lebanon, Liberia, Libya, North Korea, 

Somalia, Sri Lanka, Sudan, Syria, 

Venezuela, Vietnam, and Zimbabwe). A 

foreign-made item that incorporates 

U.S.-origin ‘‘500 series’’ items, destined 

to a country that is not subject to a U.S. 

arms embargo, would be eligible for de 

minimis treatment and would not be 

subject to the EAR if the value of all of 

its U.S.-origin controlled content does 

not exceed 25 percent of foreign-made 

item’s value. 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 31435 

Foreign-Produced Direct Product 

The Initial Implementation Rule of 

April 16, 2013 (78 FR 22660) expanded 

the foreign-produced direct products of 

U.S. ‘‘technology’’ that are subject to the 

EAR. Foreign-produced direct products 

of U.S.-origin ‘‘600 series’’ 

‘‘technology,’’ or of a plant or major 

component of a plant that is a direct 

product of U.S.-origin ‘‘600 series’’ 

‘‘technology,’’ that are ‘‘600 series’’ 

items are proposed to be subject to the 

EAR when reexported or exported from 

abroad to countries listed in Country 

Groups D:1 (national security countries 

of concern), D:3 (chemical and 

biological countries of concern), D:4 

(missile technology countries of 

concern), or E:1 (countries that support 

terrorism) in Supplement No. 1 to part 

740 or countries subject to a U.S. arms 

embargo. Foreign-made items subject to 

the EAR because of this rule are subject 

to the same license requirements to the 

new country of destination as if they 

were of U.S. origin. This rule proposes 

to extend the ‘‘600 series’’ direct 

product rule to items in the ‘‘500 series’’ 

as well. 

Use of License Exceptions 

Most ‘‘500 series’’ items would be 

eligible for several license exceptions, 

including STA, which would be 

available for exports to certain countries 

that are NATO members or multi-regime 

close allies. Certain items described in 

ECCNs 9D515 and 9E515, however, 

would not be eligible for export under 

STA, as described in those ECCNs. 

Additionally, the MT controlled 

commodities in 9A515 and some types 

of technology in 9E515 would not be 

eligible for any license exceptions, 

including STA. The use of STA for ‘‘500 

series’’ items would require the 

consignee to consent to an end-user 

check by the U.S. Government in 

addition to the standard consignee 

statement required for all STA 

transactions. ‘‘600 series’’ items are 

subject to additional criteria for the use 

of License Exception STA. Specifically, 

the Ultimate Consignee must be in an 

A:5 country and either (a) the ultimate 

end user must be the government of an 

A:5 country or the United States 

Government, or (b) the items must be for 

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

an item in that will ultimately be used 

by any such government agencies, the 

United States Government, or a person 

in the United States. BIS is not 

proposing to make this ‘‘600 series’’ 

specific STA requirement applicable to 

the ‘‘500 series.’’ ‘‘500 series’’ items are 

not munitions items and are generally 

not intended for ultimate end use by 

governmental end users. The majority of 

the items in the ‘‘500 series’’ are 

commercial items, and while many of 

the ‘‘parts’’ and ‘‘components’’ have 

military or intelligence applications, 

they are dual-use items that have 

commercial applications. Therefore, the 

application of this requirement to the 

‘‘500 series’’ would be inappropriate. 

Items controlled under proposed 

ECCNs 9A515 and 9B515 would also be 

eligible for License Exception LVS 

(limited value shipments) up to a value 

of $1,500 ($5,000 for 9B515.c), TMP 

(temporary exports), GOV (U.S. 

Government), and RPL (servicing and 

replacement parts). The use of license 

exceptions for ‘‘500 series’’ items 

generally would be prohibited to any 

destination subject to a U.S. arms 

embargo, except to the U.S. Government 

under License Exception GOV. 

License Applications 

In a license application for a 

transaction involving ‘‘500 series’’ items 

that is equivalent to a transaction that 

was previously approved by the State 

Department under the ITAR, the 

applicant may report the ITAR license 

or other approval number to BIS in 

Block 24 of the license application. 

Only those license applications where 

the particulars (e.g., the function, 

performance capabilities, form and fit of 

the item, the purchaser, ultimate 

consignee and end user(s)) are the same 

in both the EAR license application and 

the previously issued ITAR 

authorization would receive full 

consideration under this paragraph. For 

example, if a U.S. company had an 

ITAR authorization to export certain 

radiation hardened microchips that will 

be controlled under 9A515.d to a 

governmental end user in Japan, the 

company may list that authorization in 

Block 24 if it plans to export more of the 

same chips to the same end user in 

Japan. However, if the company wishes 

to export the same chip to a commercial 

end user or the next generation of chip 

to the same government end user, it may 

not list the prior authorization as 

precedent. Block 24 would alert BIS and 

the other U.S. Government agencies 

reviewing a particular ‘‘500 series’’ 

license application that this new 

application to BIS concerns a 

transaction that is equivalent to a 

previously approved transaction. This 

information may be relevant to review 

of the transaction and may result in an 

expedited determination. 

Export Clearance 

This rule proposes to adopt the ‘‘600 

series’’ export clearance requirements 

proposed in the June 21 (transition) 

rule. This rule would revise § 758.1 to 

require that information on all exports 

of ‘‘500 series’’ items be filed in AES 

regardless of value or destination. BIS is 

required to report to Congress on all 

‘‘500 series’’ exports and would only be 

able to obtain information on low value 

unlicensed shipments if an AES filing is 

made. This rule would also revise 

§ 758.2 to preclude the option of postdeparture filing for exports of ‘‘500 

series’’ items. This revision would 

maintain the current status of these 

items under the ITAR as ineligible for 

post-departure filing. Finally, this rule 

would revise § 758.6 to require that the 

ECCN for each ‘‘500 series’’ item being 

shipped be provided on the same 

documents on which the Destination 

Control Statement is required. This 

would require that the ECCN for each 

‘‘500 series’’ item be entered on the 

invoice and on the bill of lading, air 

waybill, or another export control 

document that accompanies the 

shipment from its point of origin in the 

United States to the ultimate consignee 

or end user abroad. 

Order of Review 

Supplement No. 4 to Part 774 would 

be amended to include a reference to the 

new 9x515 ECCNs so that those 

engaging in classification analyses of 

items formerly in USML Category XV 

but no longer controlled under the 

amended USML Category XV know to 

review the new 9X515 ECCNs before 

reviewing other potentially applicable 

ECCNs in the CCL. 

Request for Comments 

BIS seeks comments on this proposed 

rule. BIS will consider all comments 

received on or before July 8, 2013. 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. 

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 Export 

Administration Regulations in effect 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
31436 Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 

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. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget (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). 

BIS believes that the effect of adding 

items to the EAR that would be removed 

from the ITAR as a result of this rule as 

part of the administration’s Export 

Control Reform Initiative would 

increase the number of license 

applications to be submitted to BIS by 

approximately 1,500 annually, resulting 

in an increase in burden hours of 425 

(1,500 transactions at 17 minutes each) 

under control number 0694–0088. 

Most ‘‘spacecraft’’ and ground control 

systems, ‘‘space qualified’’ ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories’’ and 

‘‘attachments,’’ and related ‘‘software’’ 

and ‘‘technology’’ formerly on the 

USML would become eligible for 

License Exception STA under this rule. 

BIS believes that the increased use of 

License Exception STA resulting from 

the effect of adding items to the EAR 

that would be removed from the ITAR 

as a result of this rule as part of the 

administration’s Export Control Reform 

Initiative would increase the burden 

associated with control number 0694– 

0137 by about 2,258 hours (1,935 

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. The largest impact of the 

proposed rule would likely apply to 

exporters of parts, components, 

accessories, and attachments 

specifically designed or modified for 

satellite and other ‘‘spacecraft’’ items 

that would have been approved for 

export under the ITAR pursuant to a 

license for export to NATO allies and 

regime partners. Because, with few 

exceptions, the ITAR allows exemptions 

from license requirements only for 

certain exports to Canada, most exports 

of such parts, even when destined to 

NATO and other allied countries, 

require specific State Department 

authorization. Under the EAR, as 

proposed in this notice, such ‘‘parts’’ 

and ‘‘components’’ would become 

eligible for export to NATO and other 

multi-regime 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. However, the 

Administration understands that 

complying with the burdens of STA is 

likely less burdensome than applying 

for licenses or other approval from the 

State Department. 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 reliable 

customers in countries that are close 

allies or members of export control 

regimes or both. 

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 9E515 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 Regulation, Department of 

Commerce, submitted a memorandum 

to the Chief Counsel for Advocacy, 

Small Business Administration, 

certifying that this proposed rule will 

not have a significant impact on a 

substantial number of small entities. A 

summary of the factual basis for this 

certification follows. 

Number of Small Entities 

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 

USML (22 CFR part 121) 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 CCL. ‘‘Spacecraft’’ and 

related items so designated will be 

identified in specific ECCNs known as 

the ‘‘500 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 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 31437 

USML but would become subject to the 

EAR. 

Many ‘‘spacecraft’’ and specific parts 

and components would remain on the 

USML. However, ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ and 

‘‘attachments’’ for such ‘‘equipment’’ 

would be included on the CCL unless 

expressly enumerated on the USML. 

Such ‘‘parts’’ and ‘‘components’’ are 

more likely to be produced by small 

businesses than complete ‘‘spacecraft,’’ 

which would in many cases become 

subject to the EAR. Moreover, officials 

at 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 reviewed 

by that department. The proposed 

changes in this rule will not result in 

the decontrol of such items, but will 

reduce administrative and collateral 

regulatory burdens by, for example, 

allowing for the use of License 

Exception STA for exports to NATO and 

other multi-regime allied countries. 

Thus, changing the jurisdictional 

status of certain Category XV articles 

would reduce the burden on small 

entities (and other entities as well) 

through: Elimination of some license 

requirements, greater availability of 

license exceptions, simplification of 

license application procedures, and 

reduction (or elimination) of 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. 

Exporters and reexporters of the 

Category XV articles, particularly 

‘‘parts’’ and ‘‘components,’’ that would 

be placed on the CCL by this rule would 

need fewer licenses because their 

transactions 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). License Exceptions under the 

EAR would allow suppliers to send 

routine parts and low level parts to 

NATO and other export control regime 

partner countries 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 than under the 

USML. When a USML Category XV 

article moves to the CCL, the number of 

destinations for which a license is 

required would remain unchanged. 

However, the burden on the license 

applicant would decrease because the 

licensing procedure for CCL items is 

simpler and more flexible than the 

license procedure for USML 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 four 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, who are 

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 $2,250 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 costs or 

application processing fees for 

applications to export items listed on 

the CCL. Once the Category XV articles 

that are the subject to this rulemaking 

are added to the CCL and removed from 

the USML, 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 and it would no longer incur 

that expense. 

De minimis treatment under the EAR 

would also 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 exceeds 

25 percent for most destinations. 

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. 

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 Regulation of the 

Department of Commerce certified to 


TKELLEY on DSK3SPTVN1PROD with PROPOSALS
31438 Federal Register / Vol. 78, No. 101 / Friday, May 24, 2013 / Proposed Rules 

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 734, 740, 748 and 758 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Parts 736 and 772 

Exports. 

15 CFR Parts 742 and 774 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, the Export 

Administration Regulations (15 CFR 

Parts 730–774), as amended by the final 

rule published April 16, 2013 (78 FR 

22660), effective October 15, 2013, are 

proposed to be further amended as 

follows: 

PART 734—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 734 continues to read as follows: 

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

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

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

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

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

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

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

FR 49699 (August 16, 2012); Notice of 

November 1, 2012, 77 FR 66513 (November 

5, 2012). 

■ 2. Section 734.4 is amended by 

revising paragraph (a)(6) to read as 

follows: 

§ 734.4 De minimis U.S. content. 

(a) * * * 

(6) There is no de minimis level for 

foreign-made items that incorporate 

U.S.-origin ‘‘500 series’’ or ‘‘600 series’’ 

items when destined to a country listed 

in Country Group D:5 of Supplement 

No. 1 to part 740 of the EAR. 

* * * * * 

PART 736—[AMENDED] 

■ 3. The authority citation for 15 CFR 

part 736 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. 2151 note; E.O. 

12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 

950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 

Comp., p. 219; E.O. 13026, 61 FR 58767, 3 

CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 

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

13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 

168; Notice of May 9, 2012, 77 FR 27559 

(May 10, 2012); Notice of August 15, 2012, 

77 FR 49699 (August 16, 2012); Notice of 

November 1, 2012, 77 FR 66513 (November 

5, 2012). 

■ 4. Section 736.2 is amended by 

revising paragraph (b)(3)(iii) through (v) 

to read as follows: 

§ 736.2 General prohibitions and 

determination of applicability. 

* * * * * 

(b) * * * 

(3) * * * 

(iii) Additional country scope of 

prohibition for ‘‘500 series’’ or ‘‘600 

series’’ items. You may not, except as 

provided in paragraphs (b)(3)(v) or (vi) 

of this section, reexport or export from 

abroad without a license any ‘‘500 

series’’ or ‘‘600 series’’ item subject to 

the scope of this General Prohibition 

Three to a destination in Country 

Groups D:1, D:3, D:4, D:5 or E:1 (See 

Supplement No.1 to part 740 of the 

EAR). 

(iv) Product scope of ‘‘500 series’’ and 

‘‘600 series’’ items subject to this 

prohibition. This General Prohibition 

Three applies if a ‘‘500 series’’ or ‘‘600 

series’’ item meets either of the 

following conditions: 

(A) Conditions defining direct product 

of ‘‘technology’’ or ‘‘software’’ for ‘‘500 

series’’ and ‘‘600 series’’ items. Foreignmade ‘‘500 series’’ and ‘‘600 series’’ 

items are subject to this General 

Prohibition Three if the foreign-made 

items meet both of the following 

conditions: 

(1) They are the direct product of 

‘‘technology’’ or ‘‘software’’ that is in 

the ‘‘500 series’’ or ‘‘600 series’’ as 

designated on the applicable ECCN of 

the Commerce Control List in 

Supplement No. 1 to part 774 of the 

EAR; and 

(2) They are in the ‘‘500 series’’ or 

‘‘600 series’’ as designated on the 

applicable ECCN of the Commerce 

Control List in part 774 of the EAR. 

(B) Conditions defining direct product 

of a plant for ‘‘500 series’’ and ‘‘600 

series’’ items. Foreign-made ‘‘500 

series’’ and ‘‘600 series’’ items are also 

subject to this General Prohibition Three 

if they are the direct product of a 

complete plant or any major component 

of a plant if both of the following 

conditions are met: 

(1) Such plant or major component is 

the direct product of ‘‘500 series’’ or 

‘‘600 series’’ ‘‘technology’’ as designated 

on the applicable ECCN of the 

Commerce Control List in part 774 of 

the EAR, and 

(2) Such foreign-made direct products 

of the plant or major component are in 

the ‘‘500 series’’ or ‘‘600 series’’ as 

designated on the applicable ECCN of 

the Commerce Control List in part 774 

of the EAR. 

(v) ‘‘500 series’’ and ‘‘600 series’’ 

foreign-produced direct products of U.S. 

‘‘technology’’ or ‘‘software’’ subject to 

this General Prohibition Three do not 

require a license for reexport or export 

from abroad to the new destination 

unless the same item, if exported from 

the U.S. to the new destination would 

have been prohibited or made subject to 

a license requirement by part 742, 744, 

746, or 764 of the EAR. 

* * * * * 

PART 740—[AMENDED] 

■ 5. 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). 

■ 6. Section 740.2 is amended by 

revising paragraph (a)(12) and adding 

paragraph (a)(17) to read as follows: 

§ 740.2 Restrictions on all License 

Exceptions. 

(a) * * * 

(12) The item is described in a ‘‘500 

series’’ or ‘‘600 series’’ ECCN and is 

destined to, shipped from, or was 

manufactured in a destination listed in 

Country Group D:5 (see Supplement 

No.1 to part 740 of the EAR), except that 

such items are eligible for License 

Exception GOV (§ 740.11(b)(2) of the 

EAR) unless otherwise restricted by that 

paragraph. 

* * * * * 

(17) ‘‘500 series’’ items that are 

controlled for missile technology (MT) 

reasons may not be exported, 

reexported, or transferred (in-country) 

under License Exception STA (§ 740.20 

of the EAR). Items controlled under 

ECCNs 9D515.b through .g and 9E515.b 

are not eligible for license exceptions 

except for License Exception GOV 

(§ 740.11(b)(2) of the EAR). 

* * * * * 

■ 7. Section 740.9 is amended by 

revising the last sentence of paragraph 

(a) introductory text to read as follows: 

§ 740.9 Temporary imports, exports, and 

reexports (TMP). 

* * * * * 

(a) * * * The references to various 

countries and country groups in these 

TMP-specific provisions do not limit or 

amend the prohibitions in § 740.2 of the 

EAR on the use of license exceptions 

generally, such as for exports of ‘‘500 

series’’ or ‘‘600 series’’ items to 

destinations in Country Group D:5. 

* * * * * 

■ 8. Section 740.10 is amended by 

revising paragraphs (a)(3)(viii), (a)(4)(ii), 

(b)(3)(i)(F) to read as follows: 


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§ 740.10 License Exception Servicing and 

replacement of parts and equipment (RPL). 

(a) * * * 

(3) * * * 

(viii) ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ 

classified in ‘‘500 series’’ or ‘‘600 series’’ 

ECCNs may not be exported or 

reexported to a destination listed in 

Country Group D:5 (see Supplement No. 

1 to this part). 

(4) * * * 

(ii) The conditions described in 

paragraph (a)(3) relating to replacement 

of ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ or ‘‘attachments’’ 

(excluding ‘‘500 series’’ and ‘‘600 

series’’ ECCNs) do not apply to 

reexports to a foreign country of ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ or 

‘‘attachments’’ as replacements in 

foreign-origin products, if at the time 

the replacements are furnished, the 

foreign-origin product is eligible for 

export to such country under any of the 

License Exceptions in this part or the 

foreign-origin product is not subject to 

the EAR pursuant to § 734.4. 

* * * * * 

(b) * * * 

(3) * * * 

(i) * * * 

(F) Commodities or ‘‘software’’ 

‘‘subject to the EAR’’ and classified in 

‘‘500 series’’ or ‘‘600 Series’’ ECCNs may 

not be exported or reexported to a 

destination identified in Country Group 

D:5 (see Supplement No. 1 to this part). 

* * * * * 

■ 9. Section 740.20 is amended by 

adding a sentence to the end of 

paragraph (d)(2) introductory text to 

read as follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

(d) * * * 

(2) * * * Paragraph (d)(2)(vii) is also 

required for transactions including ‘‘500 

series’’ items. 

PART 742—[AMENDED] 

■ 10. The authority citation for 15 CFR 

part 742 continues to read as follows: 

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

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

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

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

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

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

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

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

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

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

Comp., p. 783; Presidential Determination 

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

16, 2003; Notice of August 15, 2012, 77 FR 

49699 (August 16, 2012); Notice of November 

1, 2012, 77 FR 66513 (November 5, 2012). 

■ 11. Section 742.4 is amended by 

revising paragraph (b)(1)(ii) and adding 

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

§ 742.4 National security. 

* * * * * 

(b) * * * 

(1) * * * 

(ii) When destined to a country listed 

in Country Group D:5 in Supplement 

No. 1 to Part 740 of the EAR, however, 

items classified under ‘‘500 series’’ or 

‘‘600 series’’ ECCNs will be reviewed 

consistent with United States arms 

embargo policies (§ 126.1 of the ITAR). 

(iii) When destined to the People’s 

Republic of China or a country listed in 

Country Group E:1 in Supplement No. 

1 to Part 740 of the EAR, items classified 

under any ‘‘500 series’’ ECCN will be 

subject to a policy of denial. 

* * * * * 

■ 12. Section 742.6 is amended by 

revising the first and fourth sentence 

and adding a sentence to the end of 

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

§ 742.6 Regional stability. 

* * * * * 

(b) * * * 

(1) Applications for exports and 

reexports of ‘‘500 series’’ and ‘‘600 

series’’ items will be reviewed on a caseby-case basis to determine whether the 

transaction is contrary to the national 

security or foreign policy interests of the 

United States. * * * Applications for 

export or reexport of items classified 

under any ‘‘500 series’’ or ‘‘600 series’’ 

ECCN requiring a license in accordance 

with paragraph (a)(1) of this section will 

also be reviewed consistent with United 

States arms embargo policies (§ 126.1 of 

the ITAR) if destined to a country set 

forth in Country Group D:5 in 

Supplement No. 1 to part 740 of the 

EAR. * * * When destined to the 

People’s Republic of China or a country 

listed in Country Group E:1 in 

Supplement No. 1 to Part 740 of the 

EAR, items classified under any ‘‘500 

series’’ ECCN will be subject to a policy 

of denial. 

* * * * * 

PART 748—[AMENDED] 

■ 13. The authority citation for 15 CFR 

part 748 continues to read as follows: 

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

U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 

3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 

FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 

of August 15, 2012, 77 FR 49699 (August 16, 

2012). 

■ 14. Section 748.8 is amended by 

revising paragraph (x) to read as follows: 

§ 748.8 Unique application and 

submission requirements. 

* * * * * 

(x) License application for a 

transaction involving a ‘‘500 series’’ and 

‘‘600 series’’ item that is equivalent to 

a transaction previously approved under 

an ITAR license or other approval. 

■ 15. Supplement No. 1 to part 748 

(BIS–748P, BIS–748P–A: Item 

Appendix, and BIS–748P–B: End-User 

Appendix; Multipurpose Application 

Instructions) is amended by revising the 

first and fifth sentences of Block 24 to 

read as follows: 

Supplement No. 1 to Part 748—Item 

Appendix, and Bis–748P–B: End-User 

Appendix; Multipurpose Application 

Instructions 

* * * * * 

Block 24: Additional Information 

This Block should be completed if your 

application includes a ‘‘500 series’’ or ‘‘600 

series’’ item that is equivalent to a 

transaction previously approved under an 

ITAR license or other approval. * * * The 

classification of the ‘‘500 series’’ or ‘‘600 

series’’ item in question will no longer be the 

same because the item would no longer be 

‘‘subject to the ITAR,’’ but all other aspects 

of the description of the item must be the 

same in order to be reviewed under this 

expedited process under paragraph (x) of 

Supplement No. 2 to part 748 of the EAR. 

* * * * * 

■ 16. Supplement No. 2 to part 748 

(Unique Application and Submission 

Requirements) is amended by revising 

paragraph (x) to read as follows: 

Supplement No. 2 to Part 748—Unique 

Application and Submission 

Requirements 

* * * * * 

(x) License application for a transaction 

involving a‘‘500 series’’ or ‘‘600 series’’ item 

that is equivalent to a transaction previously 

approved under an ITAR license or other 

approval. To request that the U.S. 

Government review of a license application 

for a ‘‘500 series’’ or ‘‘600 series’’ item also 

take into consideration a previously 

approved ITAR license or other approval, 

applicants must also include the State license 

number or other approval identifier in Block 

24 of the BIS license application (see the 

instructions in Supplement No. 1 to part 748 

under Block 24). 

* * * * * 

PART 758—[AMENDED] 

■ 17. The authority citation for 15 CFR 

part 758 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). 

■ 18. Section 758.1 is amended by 

revising paragraph (b)(3) to read as 

follows: 


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§ 758.1 The Automated Export System 

(AES) record. 

* * * * * 

(b) * * * 

(3) For all exports of ‘‘500 series’’ or 

‘‘600 series’’ items enumerated in 

paragraphs .a through .x of a ‘‘500 

series’’ or ‘‘600 series’’ ECCN regardless 

of value or destination, including 

exports to Canada; 

* * * * * 

■ 19. Section 758.2, as amended April 

16, 2013, at 78 FR 22726, is further 

amended by revising paragraph (c)(4) to 

read as follows: 

§ 758.2 Automated Export System (AES). 

* * * * * 

(c) * * * 

(4) Exports are made under License 

Exception Strategic Trade Authorization 

(STA); are made under Authorization 

Validated End User (VEU); or are of 

‘‘500 series’’ or ‘‘600 series’’ items. 

* * * * * 

■ 20. Section 758.6, as amended April 

16, 2013, at 78 FR 22726, is further 

amended by revising paragraph (b) to 

read as follows: 

§ 758.6 Destination control statement and 

other information furnished to consignees. 

* * * * * 

(b) Additional Requirement for ‘‘500 

series’’ and ‘‘600 series’’ items. In 

addition to the DCS as required in 

paragraph (a) of this section, the ECCN 

for each ‘‘500 series’’ or ‘‘600 series’’ 

item being exported must be printed on 

the invoice and on the bill of lading, air 

waybill, or other export control 

document that accompanies the 

shipment from its point of origin in the 

United States to the ultimate consignee 

or end user abroad. 

■ 21. 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). 

■ 22. Section 772.1 is amended by 

adding, in alphanumerical order, a 

definition for the term ‘‘500 series’’ and 

revising the definition for the term 

‘‘space-qualified’’ as set forth below: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

* * * * * 

500 series. ECCNs in the ‘‘xY5zz’’ 

format on the Commerce Control List 

(CCL) that control ‘‘dual use’’ 

‘‘spacecraft’’ and related items on the 

CCL that were previously controlled on 

the United States Munitions List. The 

‘‘5’’ indicates the entry is a ‘‘spacecraft’’ 

entry on the CCL. The ‘‘x’’ represents 

the CCL category and ‘‘Y’’ the CCL 

product group. The ‘‘500 series’’ 

constitutes the ‘‘spacecraft’’ ECCNs 

within the larger CCL. The ‘‘500 series’’ 

does not include items designated in 

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

0E521. 

* * * * * 

‘‘Space-qualified’’. (Cat 3, 6, and 9) 

Designed, manufactured, or qualified 

through successful testing, for operation 

at altitudes greater than 100 km above 

the surface of the Earth. 

Note: A determination that a specific item 

is ‘‘space qualified’’ by virtue of testing does 

not mean that other items in the same 

production run or model series are ‘‘space 

qualified’’ if not individually tested. 

Note: The terms ‘designed’ and 

‘manufactured’ in this definition are 

synonymous with ‘‘specially designed.’’ 

Thus, for example, an item that is ‘‘specially 

designed’’ for a spacecraft is deemed to be 

‘designed’ or ‘manufactured’ for operation at 

altitudes greater than 100 km and an item 

that is not ‘‘specially designed’’ for a 

spacecraft is not deemed to have been so 

‘designed’ or ‘manufactured.’ 

* * * * * 

PART 774—[AMENDED] 

■ 23. 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). 

■ 24. In Supplement No. 1 to Part 774, 

Category 3, revise the MT paragraph of 

the License Requirements section and 

the Related Controls paragraphs (1) and 

(2) and add a new sentence to the 

beginning of the Related Definitions 

paragraph of Export Control 

Classification Number (ECCN) 3A001 to 

read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

3A001 Electronic ‘‘components’’ and 

‘‘specially designed’’ ‘‘parts’’ and 

‘‘components’’ therefor, as follows (see 

List of Items Controlled). 

License Requirements 

* * * * * 

MT applies to 3A001.a.1.a for 

‘microcircuits’ ‘‘usable in’’ 

‘‘missiles’’ for protecting 

‘‘missiles’’ against nuclear 

effects (e.g. Electromagnetic 

Pulse (EMP), X-rays, combined blast and thermal effects) and to 3A001.a.5.a 

when ‘‘designed or modified’’ for military use, hermetically sealed and rated 

for operation in the temperature range from below ¥54 

°C to above +125 °C.

MT Column 

1 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: (1) See Category XV of the 

USML for certain ‘‘space qualified’’ 

electronics ‘‘subject to the ITAR’’ (see 22 

CFR parts 120 through 130). (2) See also 

3A101, 3A201, 3A991, and 9A515. * * * 

* * * * * 

Related Definitions: ‘Microcircuit’ means a 

device in which a number of passive or 

active elements are considered as 

indivisibly associated on or within a 

continuous structure to perform the 

function of a circuit. * * * 

■ 25. In Supplement No. 1 to Part 774, 

Category 3, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 3A002 to 

read as follows: 

3A002 General purpose electronic 

‘‘equipment’’ and ‘‘accessories’’ therefor, as 

follows (see List of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See Category XV(e)(9) of 

the USML for certain ‘‘space qualified’’ 

atomic frequency standards ‘‘subject to the 

ITAR’’ (see 22 CFR parts 120 through 130). 

See also 3A292 and 3A992. 

* * * * * 

■ 26. In Supplement No. 1 to Part 774, 

Category 3, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 3D001 to 

read as follows: 

3D001 ‘‘Software’’ ‘‘specially designed’’ for 

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

‘‘equipment’’ controlled by 3A001.b to 

3A002.g or 3B (except 3B991 and 3B992). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: ‘‘Software’’ ‘‘specially 

designed’’ for the ‘‘development’’ or 

‘‘production’’ of certain ‘‘space qualified’’ 

atomic frequency standards described in 

Category XV(e)(9) of the USML is ‘‘subject 

to the ITAR’’ (see 22 CFR parts 120 through 

130). See also 3D101. 

* * * * * 

■ 27. In Supplement No. 1 to Part 774, 

Category 3, revise the License Exception 

TSR and Related Controls paragraphs of 


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Export Control Classification Number 

(ECCN) 3E001 to read as follows: 

3E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of 

‘‘equipment’’ or ‘‘materials’’ controlled by 

3A (except 3A292, 3A980, 3A981, 3A991, 

3A992, or 3A999), 3B (except 3B991 or 

3B992) or 3C (except 3C992). 

* * * * * 

License Exceptions 

* * * * * 

TSR: Yes, except N/A for MT, and 

‘‘technology’’ specially designed for the 

‘‘development’’ or ‘‘production’’ of: (a) 

Traveling Wave Tube Amplifiers described 

in 3A001.b.8, having operating frequencies 

exceeding 19 GHz; and (b) solar cells, 

coverglass-interconnect-cells or coveredinterconnect-cells (CIC) ‘‘assemblies,’’ solar 

arrays and/or solar panels described in 

3A001.e.4. 

List of Items Controlled 

* * * * * 

Related Controls: ‘‘Technology’’ according to 

the General Technology Note for the 

‘‘development’’ or ‘‘production’’ of certain 

‘‘space qualified’’ atomic frequency 

standards described in Category XV(e)(9) of 

the USML is ‘‘subject to the ITAR’’ (see 22 

CFR parts 120 through 130). See also 3E101 

and 3E201. 

* * * * * 

■ 28. In Supplement No. 1 to Part 774, 

Category 3, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 3E003 to 

read as follows: 

3E003 Other ‘‘technology’’ for the 

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

following (see List of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See 3E001 for the 

‘‘development’’ or ‘‘production’’ related to 

radiation hardening of integrated circuits, 

including silicon-on-insulation (SOI) 

‘‘technology.’’ 

* * * * * 

■ 29. In Supplement No. 1 to Part 774, 

Category 5, revise the Related Controls 

paragraph and remove the second note 

to Items paragraph (a.3) of Export 

Control Classification Number (ECCN) 

5A001 to read as follows: 

5A001 Telecommunications ‘‘systems,’’ 

‘‘equipment,’’ ‘‘parts,’’ ‘‘components’’ and 

‘‘accessories,’’ as follows (see List of Items 

Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: (1) See USML Category XI 

for direction finding ‘‘equipment’’ defined 

in 5A001.e that are ‘‘subject to the ITAR’’ 

(see 22 CFR parts 120 through 130). (2) See 

also 5A101 and 5A991. 

* * * * * 

■ 30. In Supplement No. 1 to Part 774, 

Category 5, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 5A991 to 

read as follows: 

5A991 Telecommunication ‘‘equipment,’’ 

not controlled by 5A001 (see List of Items 

Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See also 5E101, 5E980 and 

5E991. 

* * * * * 

■ 31. In Supplement No. 1 to Part 774, 

Category 5, revise the Related Controls 

paragraph of Export Control 

Classification Number 5E001 (ECCN) to 

read as follows: 

5E001 ‘‘Technology’’ as follows (see List of 

Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See also 5E101, 5E980, and 

5E991. 

* * * * * 

■ 32. In Supplement No. 1 to Part 774, 

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6A002 to 

read as follows: 

6A002 Optical sensors and ‘‘equipment,’’ 

‘‘parts’’ and ‘‘components’’ therefor, as 

follows (see List of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: (1) See USML Categories 

XII and XV for controls on ‘‘image 

intensifiers’’ defined in 6A002.a.2 and 

‘‘focal plane arrays’’ defined in 6A002.a.3 

that are ‘‘subject to the ITAR’’ (see 22 CFR 

parts 120 through 130). (2) See also 6A102, 

6A202, and 6A992. 

* * * * * 

■ 33. In Supplement No. 1 to Part 774, 

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6A004 to 

read as follows: 

6A004 Optical ‘‘equipment,’’ ‘‘parts’’ and 

‘‘components,’’ as follows (see List of Items 

Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: (1) For optical mirrors or 

‘aspheric optical elements’ ‘‘specially 

designed’’ for lithography ‘‘equipment,’’ 

see ECCN 3B001. (2) See also 6A994. 

* * * * * 

■ 34. In Supplement No. 1 to Part 774, 

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6D001 to 

read as follows: 

6D001 ‘‘Software’’ ‘‘specially designed’’ for 

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

‘‘equipment’’ controlled by 6A004, 6A005, 

6A008 or 6B008. 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See also 6D991, and ECCN 

6E001 (‘‘development’’) for ‘‘technology’’ 

for items controlled under this entry. 

* * * * * 

■ 35. In Supplement No. 1 to Part 774, 

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6D002 to 

read as follows: 

6D002 ‘‘Software’’ ‘‘specially designed’’ for 

the ‘‘use’’ of ‘‘equipment’’ controlled by 

6A002.b, 6A008 or 6B008. 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: ‘‘Software’’ ‘‘specially 

designed’’ for the ‘‘use’’ of ‘‘space 

qualified’’ LIDAR ‘‘equipment’’ ‘‘specially 

designed’’ for surveying or for 

meteorological observation, released from 

control under the note in 6A008.j, is 

controlled in 6D991. See also 6D102, 

6D991, and 6D992. 

* * * * * 

■ 36. In Supplement No. 1 to Part 774, 

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6E001 to 

read as follows: 

6E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ of ‘‘equipment,’’ ‘‘materials’’ 

or ‘‘software’’ controlled by 6A (except 

6A991, 6A992, 6A994, 6A995, 6A996, 

6A997, or 6A998), 6B (except 6B995), 6C 

(except 6C992 or 6C994), or 6D (except 

6D991, 6D992, or 6D993). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See also 6E101, 6E201, and 

6E991. 

* * * * * 

■ 37. In Supplement No. 1 to Part 774, 

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6E002 to 

read as follows: 

6E002 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘production’’ of ‘‘equipment’’ or ‘‘materials’’ 

controlled by 6A (except 6A991, 6A992, 

6A994, 6A995, 6A996, 6A997 or 6A998), 6B 

(except 6B995) or 6C (except 6C992 or 

6C994). 

* * * * * 


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List of Items Controlled 

* * * * * 

Related Controls: See also 6E992. 

* * * * * 

■ 38. In Supplement No. 1 to Part 774, 

Category 7, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 7A004 to 

read as follows: 

7A004 ‘Star trackers’ and components 

therefor, as follows (see List of Items 

Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: 1) See USML Category XV 

for certain ‘Star trackers’ that are ‘‘subject 

to the ITAR’’ (see 22 CFR parts 120 through 

130). 

* * * * * 

■ 39. In Supplement No. 1 to Part 774, 

Category 7, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 7A104 to 

read as follows: 

7A104 Gyro-astro compasses and other 

devices, other than those controlled by 

7A004, which derive position or orientation 

by means of automatically tracking celestial 

bodies or satellites and specially designed 

components therefor. 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: (1) See USML Categories IV 

and XV for certain ‘Star trackers’ that are 

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

120 through 130). (2). * * * 

* * * * * 

■ 40. In Supplement No. 1 to Part 774, 

Category 9, revise the Related Controls 

paragraphs (1) and (3) through (5), and 

remove items paragraph (b) from the 

Items paragraph in the List of Items 

Controlled of Export Control 

Classification Number (ECCN) 9A004 to 

read as follows: 

9A004 Space launch vehicles and 

‘‘spacecraft’’. 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: 

(1) See also 9A104, 9A515, and 9B515. 

(2) * * * 

(3) Spacecraft, launch vehicles and related 

articles that are enumerated in the USML are 

‘‘subject to the ITAR’’ (see 22 CFR parts 120 

through 130). 

(4) All other ‘‘spacecraft’’ and related 

commodities not controlled under 9A004 or 

enumerated in the USML are controlled 

under ECCN 9A515 and 9B515. 

(5) Technical data required for the detailed 

design, development, manufacturing, or 

production of the international space station 

remains ‘‘subject to the ITAR’’ (see 22 CFR 

parts 120 through 130). All technical data 

and all defense services, including all 

technical assistance, for launch of the 

international space station, including launch 

vehicle compatibility, integration, or 

processing data, are ‘‘subject to the ITAR’’ 

(see 22 CFR parts 120 through 130). 

* * * * * 

■ 41. In Supplement No. 1 to Part 774, 

between the entries for ECCNs 9A120 

and 9A980, add new entry for ECCN 

9A515 to read as follows: 

9A515 ‘‘Spacecraft’’ and related 

commodities, as follows (see List of 

Items Controlled). 

License Requirements 

Reason for Control: NS, MT, RS, AT 

Control(s) Country chart 

NS applies to entire entry ..... NS Column 1 

RS applies to entire entry ..... RS Column 1 

MT applies to 9A515.d when 

‘‘usable in’’ ‘‘missiles’’ for 

protecting ‘‘missiles’’ 

against nuclear effects 

(e.g. Electromagnetic Pulse 

(EMP), X-rays, combined 

blast and thermal effects).

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 9A515. 

List of Items Controlled 

Unit: End items in number; ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ and 

‘‘attachments’’ in $ value 

Related Controls: Spacecraft, launch vehicles 

and related articles that are enumerated in 

the USML, and technical data (including 

‘‘software’’) directly related thereto, launch 

services, and launch failure analysis for 

items in 9A515.a, are ‘‘subject to the 

ITAR.’’ A license is required under the 

ITAR for a ‘‘U.S. person’’ to provide 

‘‘defense services’’ to a foreign person for 

a ‘‘spacecraft’’ to be launched from outside 

the United States, even if that ‘‘spacecraft’’ 

may be exported under License Exception 

STA. See 22 CFR 120.9. All other 

‘‘spacecraft,’’ as enumerated below and 

defined in section 772.1, are subject to the 

controls of this ECCN. See also ECCNs 

3A001, 3A002, 3A991, 3A992, 6A002, 

6A004, 6A008, and 6A998 for specific 

‘‘space-qualified’’ items and 9A004 for the 

International Space Station. 

Related Definitions: N/A. 

Items: 

a. ‘‘Spacecraft,’’ including satellites, 

manned or unmanned space vehicles, 

whether designated developmental, 

experimental, research or scientific, not 

enumerated in USML Category XV. 

Note: ECCN 9A515.a includes commercial 

communications satellites, remote sensing 

satellites not identified in USML Category 

XV, planetary rovers, and planetary and 

interplanetary probes. 

b. Ground control systems and training 

simulators ‘‘specially designed’’ for 

telemetry, tracking, and control of the 

‘‘spacecraft’’ in paragraph 9A515.a. 

c. [Reserved] 

d. Microelectronic circuits rated, certified, 

or otherwise specified or described as 

meeting or exceeding all the following 

characteristics and that are ‘‘specially 

designed’’ for defense articles, ‘‘600 series’’ 

items, or items controlled by 9A515: 

(1) A total dose of 5 × 105 Rads (Si) (5 × 

103 Gy (Si)); 

(2) A dose rate upset threshold of 5 × 108

Rads (Si)/sec (5 × 106 Gy (Si)/sec); 

(3) A neutron dose of 1 × 1014 n/cm2

(1 MeV equivalent); 

(4) An uncorrected single event upset 

sensitivity of 1 × 10¥10 errors/bit/day or less, 

for the CRE`ME–MC geosynchronous orbit, 

Solar Minimum Environment for heavy ion 

flux; and 

(5) An uncorrected single event upset 

sensitivity of 1 × 10¥3 errors/part or less for 

a fluence of 1 × 107 protons/cm2 for proton 

energy greater than 50 MeV. 

Note 1: Application specific integrated 

circuits (ASICs) ‘‘specially designed’’ for 

defense articles are controlled by Category 

XI(c) of the USML regardless of 

characteristics. 

Note 2: See 9A515.x for controls on ‘‘space 

qualified’’ microelectronic circuits that are 

not rated certified, or otherwise specified or 

described as meeting or exceeding the 

characteristics in paragraph .d. 

Note 3: See 3A001.a for controls radiationhardened microelectronic circuits ‘‘subject to 

the EAR’’ that are not controlled by 9A515.d 

or 9A515.x. 

Note 4: Microelectronic circuits that are 

‘‘specially designed’’ for defense articles on 

the USML or for ‘‘600 series’’ items are 

controlled under 3A611.x. 

e. through w. [Reserved] 

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

and ‘‘attachments’’ that are ‘‘space qualified’’ 

and not enumerated or controlled in the 

USML, elsewhere within ECCN 9A515, or an 

ECCN containing ‘‘space-qualified’’ as a 

control criterion, i.e., 3A001.b.1, 3A001.e.4, 

3A002.a.3, 3A002.g.1, 3A991.o, 3A992.b.3, 

6A002.a.1, 6A002.b.2, 6A002.d.1, 6A002.e, 

6A004.c and .d, 6A008.j.1, or 6A998.b. 

Note 1: ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ specified 

in USML subcategory XV(e) or enumerated in 

other USML categories are subject to the 

controls of that paragraph or category. 

■ 42. In Supplement No. 1 to Part 774, 

between the entries for ECCNs 9B117 

and 9B990, add new entry for ECCN 

9B515 to read as follows: 

9B515 Test, inspection, and production 

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

‘‘spacecraft’’ and related commodities, as 

follows (see List of Items Controlled). 

License Requirements 

Reason for Control: NS, RS, AT 


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Control(s) Country chart 

NS applies to entire entry ..... NS Column 1 

RS applies to entire entry ..... RS Column 1 

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

License Exceptions 

LVS: $1500; $5000 for 9B515.c. 

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 9B515. 

List of Items Controlled 

Unit: N/A. 

Related Controls: N/A. 

Related Definitions: N/A. 

Items: 

a. Test, inspection, and production 

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

‘‘production’’ or ‘‘development’’ of 

commodities enumerated in ECCN 9A515 or 

USML Category XV. 

b. ‘‘Equipment,’’ cells, and stands 

‘‘specially designed’’ for testing, analysis and 

fault isolation of commodities enumerated in 

ECCN 9A515, 9A004 or USML Category XV. 

c. Environmental test chambers capable of 

pressures below (10¥4) Torr, and ‘‘specially 

designed’’ ‘‘components’’ therefor. 

■ 43. In Supplement No. 1 to Part 774, 

between the entries for ECCNs 9D105 

and 9D990, add a new entry for ECCN 

9D515 to read as follows: 

9D515 ‘‘Software’’ ‘‘specially designed’’ for 

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

installation, maintenance, repair, overhaul, 

or refurbishing of ‘‘spacecraft’’ and related 

commodities, as follows (see List of Items 

Controlled). 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire entry ..... NS Column 1 

RS applies to entire entry ..... RS Column 1 

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

License Exceptions 

CIV: N/A. 

TSR: N/A. 

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

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

may not be used for 9D515.b through .g. (2) 

Paragraph (c)(2) of License Exception STA 

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

for any ‘‘software’’ in 9D515. 

List of Items Controlled 

Unit: $ value. 

Related Controls: ‘‘Software’’ directly related 

to articles enumerated in USML Category 

XV is subject to the control of USML 

paragraph XV(f). See also ECCNs 3D001, 

6D001, 6D002, and 6D991 for controls of 

specific software ‘‘specially designed’’ for 

certain ‘‘space qualified’’ items. 

Related Definitions: N/A. 

Items: 

a. ‘‘Software’’ (other than ‘‘software’’ 

controlled in paragraphs .b through .g of this 

entry) ‘‘specially designed’’ for the 

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

installation, maintenance, repair, overhaul, 

or refurbishing of commodities controlled by 

ECCN 9A515 or ‘‘equipment’’ controlled by 

9B515. 

b. ‘‘Source code’’ that contains the 

algorithms or control principles (e.g., clock 

management), precise orbit determination 

(e.g., ephemeris, pseudo range), signal 

construct (e.g., pseudo-random noise (PRN) 

anti-spoofing) ‘‘specially designed’’ for items 

controlled by ECCN 9A515. 

c. ‘‘Source code’’ ‘‘specially designed’’ for 

the integration, operation, or control (i.e., 

use) of items controlled by ECCN 9A515. 

d. ‘‘Source code’’ that contains algorithms 

or modules ‘‘specially designed’’ for system, 

subsystem, component, part, or accessory 

calibration, manipulation, or control of items 

controlled by ECCN 9A515. 

e. ‘‘Source code’’ ‘‘specially designed’’ for 

data assemblage, extrapolation, or 

manipulation of items controlled by ECCN 

9A515. 

f. ‘‘Source code’’ that contains the 

algorithms or control laws ‘‘specially 

designed’’ for attitude, position, or flight 

control of items controlled in ECCN 9A515. 

g. ‘‘Source code’’ ‘‘specially designed’’ for 

built-in test and diagnostics for items 

controlled by ECCN 9A515. 

■ 44. In Supplement No. 1 to Part 774, 

between the entries for ECCNs 9E102 

and 9E990, add new entry for ECCN 

9E515 to read as follows: 

9E515 ‘‘Technology’’ ‘‘required’’ for the 

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

installation, maintenance, repair, overhaul, 

or refurbishing of ‘‘spacecraft’’ and related 

commodities, as follows (see List of Items 

Controlled). 

License Requirements 

Reason for Control: NS, MT, RS, AT 

Control(s) Country chart 

NS applies to entire entry ..... NS Column 1 

MT applies to technology for 

items in 9A515.d controlled 

for MT reasons.

MT Column 1 

RS applies to entire entry ..... RS Column 1 

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

License Exceptions 

CIV: N/A. 

TSR: N/A. 

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

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

may not be used for 9E515.b. (2) Paragraph 

(c)(2) of License Exception STA 

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

for any ‘‘technology’’ in 9E515. 

List of Items Controlled 

Unit: $ value. 

Related Controls: Technical data directly 

related to articles enumerated in USML 

Category XV are subject to the control of 

USML paragraph XV(f). See also ECCNs 

3E001, 3E003, 6E001, and 6E002 for 

specific ‘‘space-qualified’’ items. 

Related Definitions: N/A. 

Items: 

a. ‘‘Technology’’ ‘‘required’’ for the 

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

installation, maintenance, repair, overhaul 

or refurbishing of commodities controlled 

by ECCN 9A515, ‘‘equipment’’ controlled 

by 9B515, or ‘‘software’’ controlled by 

9D515. 

Note: ‘‘Build-to-print technology’’ excluded 

from paragraph b. is classified under 

9E515.a. 

b. ‘‘Technology’’ (other than ‘‘build-toprint technology’’) ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ design 

verification, manufacturability, or quality 

control for items in ECCN 9A515, except 

items in ECCN 9A515.b. 

■ 45. In Supplement No. 4 to Part 774, 

add three sentences to the conclusion of 

paragraph (a)(3) and one sentence to the 

conclusion of paragraph (a)(4) and 

revise the first sentence of paragraph 

(a)(5), to read as follows: 

Supplement No. 3 to Part 774—Commerce 

Control List Order of Review 

* * * * * 

(a) * * * 

(3) Step 3. * * * The 9x515 ECCNs 

describe satellites, related items, and some 

types of radiation-hardened microelectronic 

circuits that were once subject to the ITAR 

under USML Category XV. Similarly, the first 

step when determining the classification 

status of such items that are no longer listed 

on USML Category XV is to determine 

whether they are controlled in a 9x515 

ECCN. If so, the item is classified under that 

9x515 ECCN paragraph. If not, then one 

needs to review the rest of the CCL to 

determine whether the item is within the 

scope of another ECCN. 

(4) Step 4. * * * Similarly, if a satellite, 

related item, or radiation-hardened 

microelectric circuit are not described in 

9A515, then review 9A515.x to determine if 

it is controlled there as a result of being 

‘‘space qualified.’’ 

* * * * * 

(5) Step 5. If an item is not classified by 

a ‘‘600 series’’ or ‘‘500 series’’ ECCN, then 

starting from the beginning of the product 

group analyze each ECCN to determine 

whether any other ECCN in that product 

group describes the item. * * * 

* * * * * 

Dated: May 14, 2013. 

Kevin J. Wolf, 

Assistant Secretary of Commerce for Export 

Administration. 

[FR Doc. 2013–11986 Filed 5–23–13; 8:45 am] 

BILLING CODE 3510–33–P 


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