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a. Materials ‘‘specially designed’’ for 

commodities enumerated in ECCN 

8A609 (except for 8A609.y) not 

elsewhere specified in the USML or the 

CCL. 

Note 1: Materials enumerated elsewhere in 

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

are controlled pursuant to the controls of the 

applicable ECCN. 

b. to .x. [RESERVED] 

y. Specific materials ‘‘specially 

designed’’ for the ‘‘development’’ or 

‘‘production’’ of commodities 

enumerated in ECCN 8A609 (except for 

8A609.y), and ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ 

‘‘specially designed’’ therefor, as 

follows: 

y.1. through y.98 [RESERVED] 

y.99. Materials not identified on the 

CCL that (i) have been determined, in an 

applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 8C609. 

7. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, add a new ECCN 8D609 

between ECCN 8D002 and 8D992 to 

read as follows: 

8D609 Software ‘‘specially designed’’ 

for the ‘‘development,’’ 

‘‘production,’’ operation or 

maintenance of surface vessels of 

war and related commodities 

controlled by 8A609, equipment 

controlled by 8B609, or materials 

controlled by 8C609. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

8D609.y.

NS Column 1. 

RS applies to entire 

entry except 

8D609.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

CIV: N/A. 

TSR: N/A. 

STA: Paragraph (c)(2) of License 

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

EAR may not be used for any software 

in 8D609. 

List of Items Controlled 

Unit: $ value. 

Related Controls: (1) Software directly 

related to articles enumerated in USML 

Category VI is controlled under USML 

Category VI(g). (2) See ECCN 0A919 for 

foreign made ‘‘military commodities’’ 

that incorporate more than 10% U.S.- 

origin ‘‘600 series’’ items. 

Related Definitions: N/A. 

Items: 

a. ‘‘Software’’ ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by ECCN 

8A609, ECCN 8B609, or ECCN 8C609 

(except for ECCN 8A609.y, 8B609.y, or 

8C609.y). 

b. to x. [RESERVED] 

y. Specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘development,’’ 

‘‘production,’’ operation, or 

maintenance of commodities 

enumerated in ECCN 8A609.y, 8B609.y, 

or 8C609.y, as follows: 

y.1. through y.98 [RESERVED] 

y.99. Software not identified on the 

CCL that (i) has been determined, in an 

applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 8D609. 

8. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, add a new ECCN 8E609 

between ECCN 8E002 and 8E992 to read 

as follows: 

8E609 ‘‘Technology’’ ‘‘required’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, installation, 

maintenance, repair, or overhaul of 

surface vessels of war and related 

commodities controlled by 8A609, 

equipment controlled by 8B609, 

materials controlled by 8C609, or 

software controlled by 8D609. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

8E609.y.

NS Column 1. 

RS applies to entire 

entry except 

8E609.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

CIV: N/A. 

TSR: N/A. 

STA: Paragraph (c)(2) of License 

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

EAR may not be used for any technology 

in 8E609. 

List of Items Controlled 

Unit: N/A. 

Related Controls: (1) Technical data 

directly related to articles enumerated 

in USML Category VI are controlled 

under USML Category VI(g). (2) See 

ECCN 0A919 for foreign made ‘‘military 

commodities’’ that incorporate more 

than 10% U.S.-origin ‘‘600 series’’ 

items. 

Related Definitions: N/A. 

Items: 

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

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, or overhaul of commodities 

controlled by ECCN 8A609, 8B609, or 

8C609, or ‘‘software’’ controlled by 

ECCN 8D609, except for ECCN 8A609.y, 

8B609.y, 8C609.y, or 8D609.y. 

b. through x. [RESERVED] 

y. Specific ‘‘technology’’ ‘‘required’’ 

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

operation, installation, maintenance, 

repair, or overhaul of commodities 

controlled by ECCN 8A609.y, 8B609.y 

or 8C609.y, or ‘‘software’’ controlled by 

ECCN 8D609.y, as follows: 

y.1. through y.98 [RESERVED] 

y.99. ‘‘Technology’’ not identified on 

the CCL that (i) has been determined, in 

an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 8E609. 

Dated: December 16, 2011. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–32867 Filed 12–22–11; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 742 and 774 

[Docket No. 110928603–1605–02] 

RIN 0694–AF39 

Revisions to the Export Administration 

Regulations (EAR): Control of 

Submersible Vessels, Oceanographic 

Equipment and Related Articles That 

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: The Bureau of Industry and 

Security (BIS) publishes this proposed 

rule that describes how submersible 

vessels, oceanographic equipment and 

related articles that the President 

determines no longer warrant control 

under Category VI (Vessels of War and 

Special Naval Equipment) or Category 

XX (Submersible Vessels, 

Oceanographic and Associated 


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Equipment) of the United States 

Munitions List (USML) would be 

controlled under the Commerce Control 

List (CCL) in new Export Control 

Classification Numbers (ECCNs) 8A620, 

8B620, 8D620, and 8E620. In addition, 

this proposed rule would control closed 

and semi-closed circuit (rebreathing) 

apparatus, engines and propulsion 

systems for submersible vessels, and 

submarine and torpedo nets, which are 

currently controlled under ECCN 

8A018, under new ECCN 8A620. With 

this proposed rule, BIS also would 

establish a new, unilateral control on 

submersibles ‘‘specially designed’’ for 

cargo transport that are not currently 

subject to USML or CCL controls. 

This rule is one of a planned series of 

proposed rules that are part of the 

Administration’s Export Control Reform 

Initiative under which various types of 

articles presently controlled on the 

USML under the International Traffic in 

Arms Regulations (ITAR) would, 

instead, be controlled on the CCL in 

accordance with the requirements of the 

Export Administration Regulations 

(EAR), if and after the President 

determines that such articles no longer 

warrant control on the USML. 

BIS is publishing this proposed rule, 

on December 23, 2011, in conjunction 

with another proposed rule that 

describes how surface vessels of war 

and special naval equipment the 

President determines no longer warrant 

control under Category VI would be 

controlled on the CCL under new 

ECCNs 8A609, 8B609, 8C609, 8D609, 

and 8E609. This proposed rule also is 

being published in conjunction with 

two proposed rules of the Department of 

State, Directorate of Defense Trade 

Controls, that would amend the list of 

articles controlled by USML Categories 

VI and Category XX, respectively. In 

recognition of the significant difference 

between surface vessels of war and 

submarines, the U.S. Department of 

State, Directorate of Defense Trade 

Controls, is proposing to move 

submarines and associated equipment 

from Category VI on the USML to 

Category XX. 

DATES: Comments must be received by 

February 6, 2012. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. The identification 

number for this rulemaking is BIS– 

2011–0045. 

• By email directly to 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF39 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–AF39. 

FOR FURTHER INFORMATION CONTACT: 

Alexander Lopes, Director, Office of 

Nonproliferation and Treaty 

Compliance, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Telephone: (202) 482–4875, Email: 

Alexander.Lopes@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On July 15, 2011, as part of the 

Administration’s ongoing Export 

Control Reform Initiative, the Bureau of 

Industry and Security (BIS) published a 

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

15 proposed rule’’) that set forth a 

framework for how articles the 

President determines, in accordance 

with section 38(f) of the Arms Export 

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

would no longer warrant control on the 

United States Munitions List (USML) 

and, instead, would be controlled on the 

Commerce Control List (CCL). The July 

15 proposed rule also contained a 

proposal by BIS describing how military 

vehicles and related articles in USML 

Category VII that no longer warrant 

control under the USML would be 

controlled on the CCL—the military 

vehicles proposal was the first in a 

series of such proposed rules to be 

published by BIS. With this proposed 

rule, BIS also would establish a new, 

unilateral control on submersibles 

‘‘specially designed’’ for cargo transport 

that are not currently subject to USML 

or CCL controls. 

On November 7, 2011 (76 FR 68675), 

and December 6, 2011 (76 FR 76072), 

BIS published proposed rules describing 

how aircraft and related items, and gas 

turbine engines and related items, 

respectively, determined by the 

President to no longer warrant control 

under the USML would be controlled on 

the CCL. In the November 7 proposed 

rule, BIS also made several changes and 

additions to the framework proposed in 

the July 15 proposed rule. 

BIS plans to publish additional 

proposed rules describing how certain 

articles that the President determines no 

longer warrant control on the USML 

would be controlled on the CCL. 

BIS also plans to publish a proposed 

rule describing how the new controls 

described in this and similar notices 

would be implemented, such as through 

the use of ‘‘grandfather’’ clauses and 

additional exceptions. The goal of such 

provisions would be to give exporters 

sufficient time to implement each final 

rule and to avoid, to the extent possible, 

situations where transactions would 

require licenses from both the State 

Department and the Commerce 

Department. 

Following the structure of the July 15 

and November 7 proposed rules, which 

describe the ‘‘export control reform 

initiative framework’’ for transferring 

certain USML items to the CCL, this 

proposed rule describes BIS’s proposal 

for how another group of items— 

submersible vessels, oceanographic 

equipment and related articles that are 

controlled by USML Category VI or 

Category XX—would be controlled on 

the CCL. The changes described in this 

proposed rule and related amendments 

proposed by the State Department to 

Categories VI and XX of the USML are 

based on a review of these USML 

Categories by the Defense Department, 

which worked with the Departments of 

State and Commerce in preparing the 

proposed amendments. The review was 

focused on identifying the types of 

articles that are now controlled by 

USML Category VI or Category XX that 

are either: (i) Inherently military and 

otherwise warrant control on the USML 

or (ii) if they are a type common to civil 

applications, possess parameters or 

characteristics that provide a critical 

military or intelligence advantage to the 

United States, and are almost 

exclusively available from the United 

States. If an article satisfies either or 

both of those criteria, the article would 

remain on the USML. If an article does 

not satisfy either criterion, but is 

nonetheless a type of article that is, as 

a result of differences in form and fit, 

‘‘specially designed’’ for military 

applications, then it is identified in one 

of the new ECCNs in this proposed rule. 

Finally, if an article does not satisfy 

either of the two criteria and is not 

found to be ‘‘specially designed’’ for 

military applications, the article is not 

affected by this rule because such items 

already are not on the USML. The 

licensing policies and other EARspecific controls for such items that are 

also described in this proposed rule 

would enhance our national security by: 

(i) Allowing for greater interoperability 

with our NATO and other allies while 

maintaining and expanding robust 

controls that, in some instances, would 

include prohibitions on exports or 

reexports destined for other countries or 

intended for proscribed end-users and 

end-uses; (ii) enhancing our defense 

industrial base by, for example, 

reducing the current incentives for 

foreign companies to design out or 

avoid U.S.-origin ITAR-controlled 

content, particularly with respect to 

generic, unspecified parts and 


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components; and (iii) permitting the 

U.S. Government to focus its resources 

on controlling, monitoring, 

investigating, analyzing, and, if need be, 

prohibiting exports and reexports of 

more significant items to destinations, 

end users, and end uses of greater 

concern than our NATO allies and other 

multi-regime partners. 

Pursuant to section 38(f) of the AECA, 

the President shall review the USML ‘‘to 

determine what items, if any, no longer 

warrant export controls under’’ the 

AECA. The President must report the 

results of the review to Congress and 

wait 30 days before removing any such 

items from the USML. The report must 

‘‘describe the nature of any controls to 

be imposed on that item under any 

other provision of law.’’ 22 U.S.C. 

2778(f)(1). 

This proposed rule describes how 

certain submersible vessels, 

oceanographic equipment and related 

articles currently in USML Category VI 

or Category XX would be controlled by 

the EAR and identified on the CCL, if 

the President determines that the 

articles no longer warrant control on the 

USML. The Department of Commerce is 

publishing in conjunction with this 

proposed rule, on December 23, 2011, a 

proposed rule describing how surface 

vessels of war ‘‘specially designed’’ for 

a military use and not enumerated on 

the USML and related articles that the 

President determines no longer warrant 

control under Category VI would be 

controlled on the CCL under new 

ECCNs 8A609, 8B609, 8C609, 8D609, 

and 8E609. 

In the July 15 proposed rule, BIS 

proposed creating a series of new 

ECCNs to control items that: (i) Would 

be moved from the USML to the CCL or 

(ii) are listed on the Wassenaar 

Arrangement on Export Controls for 

Conventional Arms and Dual-Use Goods 

and Technologies Munitions List 

(Wassenaar Arrangement Munitions List 

or WAML) and are already controlled 

elsewhere on the CCL. The proposed 

rule referred to this series as the ‘‘600 

series’’ because the third character in 

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

The first two characters of the 600 series 

ECCNs serve the same function as 

described for any other ECCN in § 738.2 

of the EAR. The first character is a digit 

in the range 0 through 9 that identifies 

the Category on the CCL in which the 

ECCN is located. The second character 

is a letter in the range A through E that 

identifies the product group within a 

CCL Category. In the 600 series, the 

third character is the number 6. With 

few exceptions, the final two characters 

identify the WAML category that covers 

items that are the same or similar to 

items in a particular 600 series ECCN. 

However, in this proposed rule, the final 

two characters correspond with the 

USML Category XX, instead of WAML 

Category 20. 

BIS will publish additional Federal 

Register notices containing proposed 

amendments to the CCL that will 

describe proposed controls for 

additional categories of articles the 

President determines no longer warrant 

control under the USML. The State 

Department will publish, concurrently, 

proposed amendments to the USML that 

correspond to the BIS notices. BIS will 

also publish proposed rules to further 

align the CCL with the WAML and the 

Missile Technology Control Regime 

Equipment, Software and Technology 

Annex. 

Modifications to Provisions in the July 

15 Proposed Rule 

In addition to the proposals 

mentioned above, this proposed rule 

would make the following modifications 

to the July 15 proposed rule: 

• Changes to ECCN 8A018, and 

• Addition of the new Category 8 (600 

series) ECCNs to § 742.6(a)(1). 

These modifications are described in 

the section ‘‘Scope of this Proposed 

Rule.’’ BIS will consider comments on 

the July 15 proposals only for the 

specific paragraph, note, and ECCNs 

referenced above, and only within the 

context of this proposed rule’s 

modifications to them. 

Scope of This Proposed Rule 

This proposed rule would create four 

new 600 series ECCNs in CCL Category 

8—8A620, 8B620, 8D620, and 8E620— 

that would clarify the EAR controls that 

apply to certain submersible vessels and 

related items not enumerated on the 

USML and also impose EAR controls on 

harbor entrance detection devices and 

related articles the President determines 

no longer warrant control under USML 

Category VI. Consistent with the 

regulatory construct identified in the 

July 15 proposed rule, this rule also 

would move closed and semi-closed 

circuit (rebreathing) apparatus, engines 

and propulsion systems for submersible 

vessels, and submarine and torpedo 

nets, which are currently classified 

under ECCN 8A018, to the new ECCN 

8A620. As part of the proposed changes, 

ECCN 8A018, as amended, would crossreference new ECCN 8A620 and current 

ECCNs that control non-military 

submersible vehicles, oceanographic 

and associated equipment. As noted in 

the July 15 proposed rule, moving items 

from 018 ECCNs to the appropriate 600 

series ECCNs would consolidate the 

WAML and former USML items into 

one series of ECCNs. 

The review of USML Categories VI 

and XX by the Departments of Defense, 

State and Commerce resulted in a 

determination by the agencies that U.S. 

submarines, certain submersibles, 

oceanographic equipment and related 

articles controlled on the USML provide 

a critical military and intelligence 

advantage to the United States with 

many technologies that are exclusively 

available in the United States. The 

exclusivity of this technology and the 

need to preserve the tactical and 

strategic superiority of the U.S. 

submarine force has resulted in very few 

exports of these USML items. In view of 

these factors, combined with the unique 

and independent nature of U.S. 

submarine operations and a lesser need 

for interoperability with our NATO and 

other allies, the licensing jurisdiction 

for submersible vessels, oceanographic 

equipment and related articles currently 

controlled on the USML will remain 

largely unchanged. Furthermore, unlike 

other proposed rules that have been 

published as part of the 

Administration’s Export Control Reform 

Initiative, this proposed rule would not 

affect the licensing jurisdiction of 

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

and attachments’’ ‘‘specially designed’’ 

for articles that would continue to be 

controlled under USML Category VI or 

Category XX—such articles would 

remain controlled on the USML. 

Military submersibles determined by 

the President to meet the criteria for 

movement from the USML to the CCL 

include Deep Submergence Rescue 

Vehicles (DSRV) and Deep Submergence 

Vehicles (DSV) and their specially 

designed components. This proposed 

rule would include these items in new 

ECCN 8A620. In addition, submersibles 

that are ‘‘specially designed’’ for cargo 

transport, but not currently enumerated 

on either the USML or the CCL, have 

been determined to warrant control on 

the CCL (e.g., because they are known 

to have been used in illegal drug 

trafficking activities) and would be 

included under new ECCN 8A620. 

The proposed changes are discussed 

in more detail, below. 

New Category 8 (600 Series) ECCNs 

Harbor entrance detection devices and 

related articles that the President 

determines no longer warrant control in 

USML Category VI would be controlled 

under proposed new ECCNs 8A620, 

8B620, 8D620, and 8E620. In addition, 

these new ECCNs would control certain 

submersible vessels, oceanographic 

equipment and related equipment that 

are not controlled under Category XX of 


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the USML. With this proposed rule, BIS 

thus would establish a new, unilateral 

control on submersibles ‘‘specially 

designed’’ for cargo transport that are 

not currently subject to USML or CCL 

controls. These new ECCNs follow the 

600 series construct identified in the 

July 15 proposed rule. 

Paragraph .a of ECCN 8A620 would 

control submersible and semisubmersible vessels ‘‘specially 

designed’’ for a military use, but not 

enumerated on the USML (DSRVs and 

DSVs). Paragraph .b of ECCN 8A620 

would control submersible and semisubmersible vessels ‘‘specially 

designed’’ for cargo transport 

(submersible and semi-submersible 

vessels of a type known to have been 

used in illegal drug trafficking activities) 

and ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ 

‘‘specially designed’’ therefor. Paragraph 

.c of ECCN 8A620 would control harbor 

entrance detection devices (magnetic, 

pressure, and acoustic) and controls 

therefor, not elsewhere specified on the 

USML or the CCL. Paragraph .d of ECCN 

8A620 would control certain engines 

and propulsion devices for submersible 

or semi-submersible vessels. Paragraphs 

.e and .f would control submarine and 

torpedo nets and certain closed and 

semi-closed circuit (rebreathing) 

apparatus, respectively. Paragraphs .g 

through .w would be reserved for 

possible future use. Paragraph .x would 

control parts, components, accessories 

and attachments (including certain 

unfinished products that have reached a 

stage in manufacturing where they are 

clearly identifiable as commodities 

controlled by paragraph .x) that are 

‘‘specially designed’’ for a commodity in 

paragraphs .a and .c through .f; 

however, paragraph .x would not 

include items ‘‘specially designed’’ for a 

defense article in USML Category VI or 

XX. Paragraph .y would consist of 

specific types of commodities that, if 

‘‘specially designed’’ for a commodity 

subject to control in ECCN 8A620, 

warrant less strict controls because they 

have little or no military significance. 

Commodities listed in paragraph .y 

would be subject to antiterrorism (AT 

Column 1) controls, which currently 

impose a license requirement for five 

countries. A license also would be 

required, in accordance with the July 15 

proposed rule, if commodities listed in 

paragraph .y were destined to the 

People’s Republic of China for a military 

end use as described in § 744.21 of the 

EAR. 

Unlike previous proposed rules 

published by BIS that are part of the 

Administration’s Export Control Reform 

Initiative, paragraphs .x and .y in new 

ECCN 8A620 would control only 

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

and attachments’’ that are ‘‘specially 

designed’’ for a commodity enumerated 

in ECCN 8A620 and not specified 

elsewhere in the CCL. These paragraphs 

would not also control ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ that are ‘‘specially 

designed’’ for a defense article on the 

USML (i.e., a defense article in Category 

VI or Category XX). 

This proposed rule does not add gas 

turbine engines for submersible or semisubmersible vessels to the proposed 

new ECCN 8A620. Instead, the 

Administration issued a separate 

proposed rule, on December 6, 2011 (76 

FR 76072), describing the U.S. 

Government’s controls on gas turbine 

engines and related items for military 

aircraft, ships, and vehicles that no 

longer warrant control under the USML 

or an existing 018 ECCN on the CCL. 

Similarly, this proposed rule does not 

address military surface vessels and 

related equipment that no longer 

warrant control under the USML. BIS is 

addressing controls on these items in a 

separate proposed rule that is being 

published in conjunction with this 

proposed rule on December 23, 2011. 

ECCN 8B620.a would control test, 

inspection, and production 

‘‘equipment’’ and related commodities 

‘‘specially designed’’ for the 

‘‘development’’ or ‘‘production’’ of 

commodities enumerated in ECCN 

8A620 (except for items in 8A620.b and 

.y) and not elsewhere on the CCL or in 

the USML. Paragraph .b of ECCN 8B620 

would control test, inspection, and 

production ‘‘equipment’’ and related 

commodities ‘‘specially designed’’ for 

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

commodities enumerated in ECCN 

8A620.b. Paragraphs .c through .x 

would be reserved for possible future 

use. ECCN 8B620.y would control 

specific test, inspection, and production 

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

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

commodities enumerated in ECCN 

8A620 (except for items in 8A620.y) and 

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

and attachments’’ ‘‘specially designed’’ 

therefor. However, unlike previous 

Export Control Reform Initiative 

proposed rules published by BIS, this 

proposed rule would not include in 

paragraph .y those items that are 

‘‘specially designed’’ for articles on the 

USML. Since this proposed rule does 

not list specific equipment under 

paragraph .y, sub-paragraphs .y.1 

through y.98 would be reserved for 

possible future use. 

This proposed rule does not add a 

new ECCN 8C620 to control materials, 

not specified elsewhere in the CCL, that 

are ‘‘specially designed’’ for the 

‘‘development’’ or ‘‘production’’ of 

commodities enumerated in ECCN 

8A620. In this regard, BIS understands 

that USML subcategory XIII(f) would 

continue to control structural materials 

‘‘specifically designed, developed, 

configured, modified, or adapted for 

defense articles,’’ such as warships and 

vessels controlled by USML subcategory 

VI(a) or submersible vessels and related 

articles controlled by Category XX. The 

State Department plans to publish a 

proposed rule that would make USML 

subcategory XIII(f) a positive list of 

controlled structural materials. 

ECCN 8D620.a would control 

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

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities enumerated in 8A620 

(except 8A620.b and .y) or 8B620 

(except 8B620.b and .y). Paragraph .b of 

ECCN 8D620 would control ‘‘software’’ 

‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities enumerated in 8A620.b or 

8B620.b. Paragraphs .c through .x of 

ECCN 8D620 would be reserved for 

possible future use. ECCN 8D620.y 

would control specific ‘‘software’’ 

‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities enumerated in ECCN 

8A620.y or 8B620.y. 

ECCN 8E620.a would control 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

items enumerated in ECCN 8A620 

(except 8A620.y), 8B620 (except 

8B620.y), or 8D620 (except 8D620.y). 

Paragraph .b of 8E620 would control 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

items enumerated in ECCN 8A620.b, 

8B620.b or 8D620.b. Paragraphs .c 

through .x of ECCN 8E620 would be 

reserved for possible future use. ECCN 

8E620.y would control specific 

‘‘technology’’ ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

items enumerated in ECCN 8A620.y, 

8B620.y, or 8D620.y. 

In addition, ECCNs 8A620, 8B620, 

8D620, and 8E620 would each contain 

a special paragraph designated ‘‘.y.99.’’ 

Paragraph .y.99 would control any item 

that meets all of following criteria: (i) 

The item is not listed on the CCL; (ii) 

the item was previously determined to 


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be subject to the EAR in an applicable 

commodity jurisdiction determination 

issued by the U.S. Department of State; 

and (iii) the item would otherwise be 

controlled under one of these Category 

8, 600 series, ECCNs because, for 

example, the item was ‘‘specially 

designed’’ for a military use. Items in 

these .y.99 paragraphs would be subject 

to antiterrorism (AT) controls. 

This proposed rule also would affect 

the items currently controlled under 

ECCN 8A018. Specifically, engines and 

propulsion systems currently controlled 

under ECCN 8A018.b.1, .b.2, and .b.3 

would be moved to new ECCN 

8A620.d.1, .d.2, and .d.3, respectively. 

In addition, anti-submarine and antitorpedo nets currently controlled under 

ECCN 8A018.b.4 would be moved to 

new ECCN 8A620.e and closed and 

semi-closed circuit (rebreathing) 

apparatus would be moved to new 

ECCN 8A620.f. In conjunction with the 

establishment of the new ECCN 8X620 

entries, and consistent with the July 15 

proposed rule’s statement that 018 

entries would remain in the CCL for a 

time, but only for cross-reference 

purposes, this rule would amend ECCN 

8A018 to remove all language except 

cross references to the new 600 series 

ECCNs that cover the items in the new 

ECCN 8A620 (i.e., ECCN 8A620.d, .e, 

and .f). 

Corresponding Amendments 

As discussed in further detail below, 

the July 15 proposed rule stated that one 

reason for control for items classified in 

the 600 series is regional stability (RS) 

(specifically, RS Column 1). Items 

classified under proposed ECCN 8A620 

or ECCN 8B620, other than ECCN 

8A620.y or ECCN 8B620.y items, as well 

as related technology and software 

classified under ECCNs 8D620 and 

8E620, would be controlled for this 

reason, among others. Correspondingly, 

this proposed rule would revise § 742.6 

of the EAR to apply the RS Column 1 

licensing policy to commodities 

classified under ECCN 8A620 and 

8B620 (except paragraphs .y of those 

ECCNs), and to related software and 

technology classified under ECCNs 

8D620 and 8E620. Note that the 

proposed rule on military aircraft and 

related items that BIS published on 

November 7 would amend the RS 

Column 1 licensing policy to impose a 

general policy of denial for ‘‘600 series’’ 

items if the destination is subject to a 

United States arms embargo. 

Relationship to the July 15 Proposed 

Rule 

As referenced above, the purpose of 

the July 15 proposed rule is to establish 

within the EAR the framework for 

controlling on the CCL articles that the 

President determines no longer warrant 

control on the USML. To facilitate that 

goal, the July 15 proposed rule contains 

definitions and concepts that are meant 

to be applied across Categories. 

However, as BIS undertakes 

rulemakings to move specific categories 

of items from the USML to the CCL, if 

and after the President determines that 

such articles no longer warrant control 

under the USML, there may be 

unforeseen issues or complications that 

require BIS to reexamine those 

definitions and concepts. The comment 

period for the July 15 proposed rule 

closed on September 13, 2011. In the 

November 7 proposed rule, BIS 

proposed several changes to those 

definitions and concepts. The comment 

period for the November 7 proposed 

rule closed on December 22, 2011. 

To the extent that this rule’s proposals 

affect any provision in July 15 proposed 

rule or the July 15 proposed rule’s 

provisions affect this proposed rule, BIS 

will consider comments on those 

provisions so long as they are within the 

context of the changes proposed in this 

rule. For example, BIS will consider 

comments on how the movement of 

Category VI and Category XX items from 

the USML to the CCL affects a 

definition, restriction, or provision that 

was contained in the July 15 proposed 

rule. BIS will also consider comments 

on the impact of a definition of a term 

in the July 15 proposed rule when that 

term is used in this proposed rule. BIS 

will not consider comments of a general 

nature regarding the July 15 proposed 

rule that are submitted in response to 

this rulemaking. 

BIS believes that the following 

provisions of the July 15 proposed rule 

and the November 7 proposed rule on 

aircraft and related items are among 

those that could affect the items covered 

by this proposed rule: 

• De minimis provisions in § 734.4; 

• Restrictions on use of license 

exceptions in §§ 740.2, 740.10, 740.11, 

and 740.20; 

• Change to national security 

licensing policy in § 742.4; 

• Requirement to request 

authorization to use License Exception 

STA for end items in 600 series ECCNs 

and procedures for submitting such 

requests in §§ 740.2, 740.20, 748.8 and 

Supp. No. 2 to part 748; 

• Addition of 600 series items to 

Supplement No. 2 to Part 744—List of 

Items Subject to the Military End-Use 

Requirement of § 744.21; and 

• Definitions of terms in § 772.1. 

BIS believes that the following 

provisions of this proposed rule are 

among those that could affect the 

provisions of the July 15 and November 

7 proposed rules: 

• Additional 600 series items 

identified in the RS Column licensing 

policy described in § 742.6. 

Effects of This Proposed Rule 

BIS believes that this proposed rule 

would have little effect, in practical 

terms, on exports and reexports of the 

items included in new ECCNs 8A620, 

8B620, 8D620, or 8E620 that the 

President determines no longer warrant 

control on the USML. Unlike the 

previous proposed rules published by 

BIS that are part of the Administration’s 

Export Control Reform Initiative and 

would add 600 series ECCNs to control 

articles the President determines no 

longer warrant control under the USML, 

this proposed rule would affect only 

exports and reexports of items 

enumerated in ECCN 8A620, ‘‘specially 

designed’’ ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ therefor 

(as indicated in ECCN 8A620.x or .y), 

and related items described in ECCN 

8B620, 8D620, or 8E620. This rule 

would not affect the licensing 

jurisdiction for ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ 

‘‘specially designed’’ for articles that 

would continue to be controlled under 

USML Category VI or Category XX— 

such articles would remain controlled 

on the USML. Furthermore, based the 

licensing history for the items affected 

by this rule, BIS anticipates receiving an 

average of less than one license 

application per year for each type of 

item (e.g., the items described in ECCN 

8A620, including those that currently 

are controlled under ECCN 8A018). 

In terms of specific EAR 

requirements, this rule would make 

additional items eligible for de minimis 

consideration under the EAR (i.e., 

‘‘specially designed’’ ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ for items enumerated in 

ECCN 8A620.a, .b, or .c, as indicated in 

ECCN 8A620.x or .y—de minimis 

consideration currently is available for 

the ECCN 8A018 items that would be 

moved to ECCN 8A620.d, .e, or .f). 

However, items ‘‘specially designed’’ for 

articles that would continue to be 

controlled under USML Category VI or 

Category XX also would remain 

controlled on the USML. In addition, 

there will be greater flexibility for 

certain 600 series ECCN items (i.e., 

items enumerated in ECCN 8A620.a, .b, 

or .c) with respect to the availability of 

certain license exceptions, such as 

License Exceptions GOV and STA. 

Some of these specific effects are 

discussed in more detail below. The 


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actual impact of these changes is likely 

to be negligible in light of the fact that 

BIS anticipates receiving only a limited 

number of license applications for such 

items. 

De minimis 

The July 15 proposed rule would 

impose certain unique de minimis 

requirements on items controlled under 

the new 600 series ECCNs. Section 

734.3 of the EAR provides, inter alia, 

that under certain conditions items 

made outside the United States that 

incorporate items subject to the EAR are 

not subject to the EAR if they do not 

exceed a ‘‘de minimis’’ percentage of 

controlled U.S. origin content. 

Depending on the destination, the de 

minimis percentage can be either 10 

percent or 25 percent. If the July 15 

proposed rule’s amendments at § 734.4 

of the EAR are adopted, the new ECCNs 

8A620, 8B620, 8D620 and 8E620 

proposed in this rule would be subject 

to the de minimis provisions set forth in 

the July 15 proposed rule, because they 

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

new ECCNs would become eligible for 

de minimis treatment at the 10 percent 

level (i.e., a foreign-made item is not 

subject to the EAR, for de minimis 

purposes, if the value of its U.S.-origin 

controlled content does not exceed 10 

percent of foreign-made item’s value). In 

contrast, the AECA does not permit the 

ITAR to have a de minimis treatment for 

USML-listed items, regardless of the 

significance or insignificance of the 

U.S.-origin content or the percentage of 

U.S.-origin content in the foreign-made 

item (i.e., USML-listed items remain 

subject to the ITAR when they are 

incorporated abroad into a foreign-made 

item, regardless of either of these 

factors). In addition, foreign-made items 

that incorporate any items that are 

currently classified under an 018 ECCN 

and that are moved to a new 600 series 

ECCN would be subject to the EAR if 

those foreign-made items contained 

more than 10 percent U.S.-origin 

controlled content, regardless of the 

destination and regardless of the 

proportion of the U.S.-origin controlled 

content accounted for by the former 018 

ECCN items. 

Use of License Exceptions 

The July 15 proposed rule would 

impose certain restrictions on the use of 

license exceptions for items that would 

be controlled under the new 600 series 

ECCNs on the CCL. For example, 

proposed § 740.2(a)(12) would make 600 

series items that are destined for a 

country subject to a United States arms 

embargo ineligible for shipment under a 

license exception, except where 

authorized by License Exception GOV 

under § 740.11(b)(2)(ii) of the EAR. BIS 

believes that, even with the July 15 and 

November 7 proposed restrictions on 

the use of license exceptions for 600 

series items, the restrictions on those 

items currently on the USML would be 

reduced, particularly with respect to 

exports to NATO members and 

multiple-regime member countries, if 

those items are moved from the USML 

to proposed ECCN 8A620. BIS also 

believes that, in practice, the movement 

of items from an 018 ECCN to a new 600 

series ECCN (e.g., engines and 

propulsion systems for submersible 

vessels from 8A018.b.1, b.2, and .b.3 to 

8A620.d.1, .d.2, and .d.3, respectively, 

submarine and torpedo nets from 

8A018.b.4 to 8A620.e, and closed and 

semi-closed circuit (rebreathing) 

apparatus from 8A018.a to 8A620.f) 

would have little effect on license 

exception availability for those items. 

However, BIS is aware of two situations 

(the use of License Exceptions GOV and 

STA) in which movement of items from 

an 018 ECCN to a new 600 series ECCN 

could, in practice, impose greater limits 

on the use of license exceptions than 

currently is the case. 

First, the July 15 proposed rule would 

limit the use of License Exception GOV 

for 600 series commodities to situations 

in which the United States Government 

is the consignee and end user or to 

situations in which the consignee or end 

user is the government of a country 

listed in § 740.20(c)(1). Currently, closed 

and semi-closed circuit (rebreathing) 

apparatus classified under ECCN 

8A018.a, engines and propulsion 

systems classified under 8A018.b.1, b.2, 

or .b.3 and submarine and torpedo nets 

classified under ECCN 8A018.b.4, may 

be exported under any provision of 

License Exception GOV to any 

destination authorized by that provision 

if all of the conditions of that provision 

are met and nothing else in the EAR 

precludes such shipment. 

Second, the July 15 proposed rule 

would: (i) Limit the use of License 

Exception STA for ‘‘end items’’ in 600 

series ECCNs to those end items for 

which a specific request for License 

Exception STA eligibility (filed in 

conjunction with a license application) 

has been approved and (ii) require that 

the end item be for ultimate end use by 

a foreign government agency of a type 

specified in the July 15 proposed rule. 

The July 15 proposed rule also would 

limit exports of 600 series parts, 

components, accessories, and 

attachments under License Exception 

STA for ultimate end use by the same 

set of end users. Neither restriction 

currently applies to the use of License 

Exception STA for commodities 

classified under ECCN 8A018.a or .b, 

but both would apply to closed and 

semi-closed circuit (rebreathing) 

apparatus currently controlled under 

8A018.a and submarine and torpedo 

nets currently controlled under ECCN 

8A018.b.4. In addition, the July 15 

proposed rule would limit the shipment 

of 600 series items under License 

Exception STA to destinations listed in 

§ 740.20(c)(1). Currently, the 

commodities classified under ECCN 

8A018.a or .b (which would be moved 

to ECCN 8A620 by this proposed rule) 

may be shipped under License 

Exception STA to destinations listed in 

§ 740.20(c)(1) or (c)(2). 

Making U.S. Export Controls More 

Consistent With the Wassenaar 

Arrangement Munitions List Controls 

The Administration has stated, since 

the beginning of the Export Control 

Reform Initiative, that the reforms will 

be consistent with the obligations of the 

United States to the multilateral export 

control regimes. Accordingly, the 

Administration will, in this and 

subsequent proposed rules, exercise its 

national discretion to implement, 

clarify, and, to the extent feasible, align 

its controls with those of the regimes. 

For example, the proposed ECCN 8A620 

tracks, to the extent possible, the 

numbering structure and text of WAML 

category 9 pertaining to submersible 

vessels not subject to the ITAR. It also 

implements in 8A620.x the controls in 

WAML category 16 for forgings, 

castings, and other unfinished products; 

in 8B620.a the controls in WAML 

category 18 for production equipment; 

in 8D620 the applicable controls in 

WAML category 21 for software; and in 

8E620 the applicable controls in WAML 

category 22 for technology. 

Other Effects 

Pursuant to the framework identified 

in the July 15 proposed rule, 

commodities classified under ECCN 

8A620 (other than ECCN 8A620.b and 

.y), along with related test inspection 

and production equipment, software, 

and technology classified under ECCN 

8B620, 8D620 or 8E620 (except items 

classified under the .b and .y paragraphs 

of these ECCNs), would be subject to the 

licensing policies that apply to items 

controlled for national security (NS) 

reasons, as described in § 742.4(b)(1)— 

specifically, NS Column 1 controls. In 

addition, all commodities in ECCN 

8A620 (other than those identified in 

8A620.y, which are controlled for AT 

Column 1 anti-terrorism reasons only 

and may also be subject to the 


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prohibitions described in Part 744), 

along with related test, inspection and 

production equipment, software and 

technology classified under ECCN 

8B620, 8D620 or 8E620 (except items 

classified under the .y paragraphs of 

these ECCNs), would be subject to the 

regional stability licensing policies set 

forth in § 742.6(a)(1)—specifically, RS 

Column 1. 

The July 15 proposed rule would 

change § 742.4 to apply a general policy 

of denial to 600 series items for 

destinations that are subject to a United 

States arms embargo. That policy would 

apply to all items controlled for national 

security (NS) reasons under this 

proposed rule. The November 7 

proposed rule would expand that 

general policy of denial to include 600 

series items subject to the licensing 

policies that apply to items controlled 

for regional stability reasons, as 

described in § 742.6(b)(1)—specifically, 

RS Column 1. While this change might 

seem redundant for the items affected 

by this proposed rule, it ensures that a 

general denial policy would apply to 

any 600 series items that are controlled 

for missile technology (MT) and 

regional stability (RS) reasons, but not 

for national security (NS) reasons (as 

would be the case for certain items 

affected by the aircraft rule). 

Jurisdictional and Classification Status 

of Items Subject to Previous Commodity 

Jurisdiction Determinations 

The Administration recognizes that 

some items that would fall within the 

scope of the proposed new ECCNs will 

have been subject to commodity 

jurisdiction (CJ) determinations issued 

by the United States Department of 

State. The State Department will have 

either determined that the item was 

subject to the jurisdiction of the ITAR or 

that it was not. (See 22 CFR 120.3 and 

120.4.) Under this proposed rule, items 

that the State Department determined to 

be not subject to the ITAR and that are 

not described on the CCL would be 

subject to the AT-only controls of the 

‘‘.y.99’’ paragraph of a 600 series ECCN 

if they would otherwise be within the 

scope of the ECCN. Thus, for example, 

ECCN 8A620.x would control any part, 

component, accessory, or attachment 

‘‘specially designed’’ for a commodity 

enumerated in ECCN 8A620 that is not 

specified elsewhere on the CCL (in this 

regard, note that 8A620.x would not 

control items ‘‘specially designed’’ for 

an article identified on the USML). 

However, any part, component, 

accessory or attachment that is 

determined by CJ not to be subject to the 

ITAR and is (as defined) ‘‘specially 

designed’’ for a submersible or semisubmersible vessel or other commodity 

controlled by ECCN 8A620 would be 

controlled under 8A620.y.99 if it is not 

identified elsewhere on the CCL. If the 

item is controlled, either as a matter of 

law or as the result of a subsequent 

commodity classification (‘‘CCATS’’) 

determination by Commerce, under an 

ECCN that is currently on the CCL (e.g., 

ECCN 8A992.f), that ECCN would 

continue to apply to the item. This 

general approach will, pending public 

comment, be repeated in subsequent 

proposed rules pertaining to other 

categories of items. 

If, however, the State Department had 

made a CJ determination that a 

particular item was subject to the 

jurisdiction of ITAR but that item is not 

described on the final, implemented 

version of a revised USML category, a 

new CJ determination would not be 

required unless there is doubt about the 

application of the new USML category 

to the item. (See 22 CFR 120.4.) Thus, 

unless there are doubts about the 

jurisdictional status of a particular item, 

exporters and reexporters would be 

entitled to rely on the revised USML 

categories when making jurisdictional 

determinations, notwithstanding past CJ 

determinations that, under the previous 

version of the USML, the item was ITAR 

controlled. 

Finally, if the State Department had 

made a CJ determination that a 

particular item was subject to the 

jurisdiction of the ITAR and that item 

remains in the revised USML, the item 

would remain subject to the jurisdiction 

of the ITAR. 

Section-by-Section Description of the 

Proposed Changes 

• Section 742.6—ECCNs 8A620, 

8B620, 8D620 and 8E620 are added to 

§ 742.6(a)(1) to impose an RS Column 1 

license requirement and licensing 

policy, including a general policy of 

denial in Section 742.6(b)(1) for 

applications to export or reexport ‘‘600 

series’’ items to destinations that are 

subject to a United States arms embargo. 

• Supplement No. 1 to part 774— 

ECCNs 8A620, 8B620, 8D620 and 8E620 

would be added to Supplement No. 1 to 

part 774. ECCN 8A018 would be 

amended to remove all language except 

cross references to engines and 

propulsion systems for submersible 

vessels, submarine and torpedo nets, 

and closed and semi-closed circuit 

(rebreathing) apparatus that would be 

moved from ECCN 8A018 to proposed 

new ECCN 8A620 under paragraphs .d, 

.e, and .f, respectively. 

Request for Comments 

BIS seeks comments on this proposed 

rule. BIS will consider all comments 

received on or before February 6, 2012. 

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 extended by the 

Notice of August 12, 2011, 76 FR 50661 

(August 16, 2011), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. BIS 

continues to carry out the provisions of 

the Act, as appropriate and to the extent 

permitted by law, pursuant to Executive 

Order 13222. 

Regulatory Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

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 


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applications, and License Exceptions 

and Exclusions (0694–0137). 

As stated in the proposed rules 

published at 76 FR 41958 (July 15, 

2011), 76 FR 41958 (July 15, 2011), 76 

FR 68675 (November 7, 2011), 76 FR 

76072 (December 6, 2011), and 76 FR 

76085 (December 6, 2011) and in the 

proposed rule on military surface 

vessels and related equipment that is 

being published in conjunction with 

this proposed rule on December 23, 

2011, BIS believes that the combined 

effect of all rules to be published adding 

items to EAR that would be removed 

from the ITAR as part of the 

administration’s Export Control Reform 

Initiative would increase the number of 

license applications to be submitted by 

approximately 16,000 annually, 

resulting in an increase in burden hours 

of 5,067 (16,000 transactions at 17 

minutes each) under control number 

0694–0088. 

Some items formerly on the USML 

would become eligible for License 

Exception STA under this rule. Other 

such items may become eligible for 

License Exception STA upon approval 

of a request submitted in conjunction 

with a license application. As stated in 

the July 15 and November 7 proposed 

rules published by BIS, in the two 

proposed rules that BIS published on 

December 6, and in the proposed rule 

on military surface vessels and related 

equipment that BIS is publishing in 

conjunction with this proposed rule on 

December 23, 2011, BIS believes that the 

increased use of License Exception STA 

resulting from the combined effect of all 

rules to be published adding items to 

EAR that would be removed from the 

ITAR as part of the administration’s 

Export Control Reform Initiative would 

increase the burden associated with 

control number 0694–0137 by about 

23,858 hours (20,450 transactions @ 1 

hour and 10 minutes each). 

BIS does not expect that these 

changes would result in a measurable 

increase in burden with respect to the 

items affected by this proposed rule (i.e., 

the items that would be moved from the 

018 ECCNs to the new 600 series ECCNs 

and the items that would be included in 

the new 600 series ECCNs because the 

President determines such items no 

longer warrant control under the 

USML). The reason for this is that the 

export and reexport trade in the items 

that would be controlled under new 

ECCN 8A620, 8B620, 8D620, or 8E620 is 

very limited. In fact, BIS anticipates 

receiving an average of less than one 

license application per year for each 

type of item controlled under these 

ECCNs. 

Similarly, BIS does not expect that the 

addition to new ECCNs 8A620, 8B620, 

8D620, and 8E620 of items that the 

President determines no longer warrant 

control under the USML would result in 

a measurable decrease in burden, given 

the very limited volume of export and 

reexport trade in such items. 

Furthermore, unlike the previous 

proposed rules published by BIS that 

are part of the Administration’s Export 

Control Reform Initiative, this proposed 

rule would reduce burden hours only 

with respect to exports and reexports of 

certain items enumerated in ECCN 

8A620 (specifically ECCN 8A620.a, .b, 

and .c), ‘‘specially designed’’ ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ therefore (as indicated in 

ECCN 8A620.x or .y), and related items 

described in ECCN 8B620, 8D620, or 

8E620. This proposed rule would not 

affect the licensing jurisdiction for 

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

and attachments’’ ‘‘specially designed’’ 

for articles that would continue to be 

controlled under USML Category VI or 

Category XX—such articles would 

remain controlled on the USML. 

Therefore, the reduction in burden 

hours that would result from this 

proposed rule would be significantly 

less than in the previous Export Control 

Reform Initiative proposed rules 

published by BIS. 

In conclusion, due to the very limited 

volume of export and reexport trade in 

the items that would be affected by this 

proposed rule, BIS does not expect the 

proposed amendments described 

therein to result in a measurable change 

in burden. 

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, certified to the Chief 

Counsel for Advocacy, Small Business 

Administration that this proposed rule, 

if promulgated, will not have a 

significant impact on a substantial 

number of small entities for the reasons 

explained below. Consequently, BIS has 

not prepared a regulatory flexibility 

analysis. A summary of the factual basis 

for the certification is provided below. 

Number of Small Entities 

The Bureau of Industry and Security 

(BIS) does not collect data on the size 

of entities that apply for and are issued 

export licenses. Although BIS is unable 

to estimate the exact number of small 

entities that would be affected by this 

rule, it acknowledges that this rule 

would affect some unknown number. 

Economic Impact 

This proposed rule is part of the 

Administration’s Export Control Reform 

Initiative. Under that initiative, the 

United States Munitions List (22 CFR 

part 121) (USML) would be revised to be 

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

use generic, catch-all controls on any 

part, component, accessory, attachment, 

or end item that was in any way 

specifically modified for a defense 

article, regardless of the article’s 

military or intelligence significance or 

non-military applications. At the same 

time, articles that are determined to no 

longer warrant control on the USML 

would become controlled on the 

Commerce Control List (CCL). Such 

items, along with certain military items 

that currently are on the CCL, will be 

identified in specific Export Control 

Classification Numbers (ECCNs) known 

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

some items currently on the Commerce 

Control List would move from existing 

ECCNs to the new 600 series ECCNs. 

This rule addresses certain 

submersible and semi-submersible 

vessels currently enumerated in USML 

Category XX (i.e., Deep Submergence 

Rescue Vehicles (DSRV) and Deep 

Submergence Vehicles (DSV)), certain 

submersible and semi-submersible 

vessels ‘‘specially designed’’ for cargo 

transport (i.e., vessels not currently 

enumerated on either the USML or the 

CCL, but determined to warrant control 

on the CCL, because they are known to 

have been used in illegal drug 

trafficking activities), items currently 

controlled under ECCN 8A018 (i.e., 

closed and semi-closed circuit 

(rebreathing) apparatus, engines and 

propulsion systems for submersible and 

semi-submersible vessels, and 

submarine and torpedo nets), and 

certain articles currently enumerated in 

USML Category VI (i.e., harbor entrance 

detection devices and related articles). 


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BIS does not anticipate that the 

changes described in this proposed rule 

would have a measurable impact on 

small entities. This is because the export 

and reexport trade in the items that 

would be controlled under new ECCN 

8A620, 8B620, 8D620, or 8E620 is very 

limited. In addition, this proposed rule 

would not affect the licensing 

jurisdiction for ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ 

‘‘specially designed’’ for articles that 

would continue to be controlled under 

USML Category VI or Category XX. In 

contrast to the other proposed rules that 

BIS has published as part of the 

Administration’s Export Control Reform 

Initiative, such articles would remain 

controlled on the USML. In fact, based 

on the licensing history of the items that 

would be affected by this proposed rule, 

BIS anticipates receiving an average of 

less than one license application per 

year for each type of item controlled 

under these new 600 series ECCNs. 

Although BIS anticipates that the 

changes that would be made by this 

proposed rule would not have a 

measurable impact on the burden on 

small entities, changing the 

jurisdictional status of certain Category 

VI and Category XX articles would, 

potentially, reduce the burden on small 

entities (and other entities as well) 

through: (i) Elimination of some license 

requirements, (ii) greater availability of 

license exceptions, (iii) simpler license 

application procedures, and (iv) 

reduced, or eliminated, registration fees. 

For example, parts and components 

identified in ECCN 8A620.y would be 

designated immediately as parts and 

components that, even if specially 

designed for a military use, have little 

or no military significance (in this 

regard, note that ECCN 8A620.y would 

control only parts or components 

‘‘specially designed’’ for items that 

would be controlled by ECCN 8A620.a 

through .f—not parts and components 

‘‘specially designed’’ for articles 

enumerated on the USML). Those parts 

and components identified in proposed 

ECCN 8A620.y that currently require a 

license under the ITAR to nearly all 

destinations would, under the EAR, 

require a license to only five 

destinations and, if destined for a 

military end use, to the People’s 

Republic of China. 

Certain exports and reexports of the 

Category VI and Category XX articles 

that would be placed on the CCL by this 

rule would become eligible for license 

exceptions that apply to shipments to 

United States Government agencies, 

shipments valued at less than $1,500, 

parts and components being exported 

for use as replacement parts, temporary 

exports, and License Exception Strategic 

Trade Authorization (STA), reducing 

the number of licenses that exporters of 

these items would need. 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 for 

which a license would be required, the 

process would be simpler and less 

costly under the EAR. When a USML 

Category VI or Category XX article is 

moved 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 that the 

license procedure for UMSL articles. 

Under the USML licensing procedure, 

an applicant must include a purchase 

order or contract with its application. 

There is no such requirement under the 

CCL licensing procedure. This 

difference gives the CCL applicant at 

least two advantages. First, the 

applicant has a way of determining 

whether the U.S. Government will 

authorize the transaction before it enters 

into potentially lengthy, complex and 

expensive sales presentations or 

contract negotiations. Under the USML 

procedure, the applicant must caveat all 

sales presentations with a reference to 

the need for government approval and is 

more likely 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 specified consignee over 

the life of a license (normally two years, 

but may be longer if circumstances 

warrant a longer period), thus reducing 

the total number of licenses for which 

the applicant must apply. 

For items currently on the CCL that 

would be moved from existing ECCNs to 

the new 600 series ECCNs (i.e., the items 

currently controlled under ECCN 

8A018), license exception availability 

would be narrowed somewhat and the 

applicable de minimis threshold for 

foreign-made products containing those 

items would in some cases be reduced 

from 25 percent to 10 percent. However, 

similar to the changes affecting the 

USML Category VI and Category XX 

articles described above, BIS anticipates 

that these changes would have little 

impact on the burden on small entities 

in light of the extremely limited number 

of exports and reexports involving the 

items currently controlled under ECCN 

8A018. 

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 

anticipates that none of the changes 

proposed by this rule would likely have 

a measurable impact on the burden on 

small entities, due to the limited 

number of exports and reexports 

involving the items that would be 

affected by this proposed rule. However, 

although BIS anticipates that the 

changes that would be made by this 

proposed rule would not have a 

measurable impact on the burden on 

small entities, changing the 

jurisdictional status of certain Category 

VI and Category XX articles would, 

potentially, reduce the burden on small 

entities by reducing 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 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 Part 742 

Exports, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, parts 742 and 774 of the 

Export Administration Regulations (15 

CFR parts 730–774) are proposed to be 

amended as follows: 


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PART 742—[AMENDED] 

1. The authority citation for 15 CFR 

part 742 continues to read as follows: 

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

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

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

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

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

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

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

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

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

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

Comp., p. 783; Presidential Determination 

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

16, 2003; Notice of August 12, 2011, 76 FR 

50661 (August 16, 2011); Notice of November 

9, 2011, 76 FR 70319 (November 10, 2011). 

2. Section 742.6 is amended by 

revising paragraph (a)(1) to read as 

follows: 

§ 742.6 Regional stability. 

(a) * * * 

(1) RS Column 1 License 

Requirements in General. As indicated 

in the CCL and in RS column 1 of the 

Commerce Country Chart (see 

Supplement No. 1 to part 738 of the 

EAR), a license is required to all 

destinations, except Canada, for items 

described on the CCL under ECCNs 

0A521; 0A606 (except 0A606.b and .y); 

0B521; 0B606 (except 0B606.y); 0C521; 

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

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

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

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

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

‘‘development’’ or ‘‘production’’ of 

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

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

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

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

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

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

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

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

6E001 (only ‘‘technology’’ for 

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

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

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

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

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

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

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

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

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

‘‘use’’ of equipment classified under 

6A998.b); 6D994; 7A994 (only QRS11– 

00100–100/101 and QRS11–0050–443/ 

569 Micromachined Angular Rate 

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

‘‘development’’ or ‘‘production’’ of 

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

7E001 (only ‘‘technology’’ for the 

‘‘development’’ of inertial navigation 

systems, inertial equipment, and 

specially designed components therefor 

for civil aircraft); 7E002 (only 

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

inertial navigation systems, inertial 

equipment, and specially designed 

components therefor for civil aircraft); 

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

of inertial navigation systems, inertial 

equipment, and specially designed 

components for civil aircraft); 8A609 

(except 8A609.y); 8A620 (except 

8A620.y); 8B609 (except 8B609.y); 

8B620 (except 8B620.y); 8C609 (except 

8C609.y); 8D609 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by 8A609.y, 

8B609.y, or 8C609.y); 8D620 (except 

software for the ‘‘development,’’ 

‘‘production,’’ operation, or 

maintenance of commodities controlled 

by 8A620.y or 8B620.y); 8E609 (except 

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

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of commodities 

controlled by 8A609.y, 8B609.y, or 

8C609.y); 8E620 (except ‘‘technology’’ 

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

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

commodities controlled by 8A620.y or 

8B620.y); 9A610 (except 9A610.y); 

9A619 (except 9A619.y); 9B610 (except 

9B610.y); 9B619 (except 9B619.y); 

9C610 (except 9C610.y); 9C619 (except 

9C619.y); 9D610 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, or overhaul of commodities 

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

9C610.y); 9D619 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by 9A619.y, 

9B619.y, or 9C619.y); 9E610 (except 

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

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of commodities 

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

or 9C610.y); and 9E619 (except 

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

‘‘production’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of commodities 

controlled by ECCN 9A619.y, 9B619.y, 

or 9C619.y). 

* * * * * 

PART 774—[AMENDED] 

3. The authority citation for 15 CFR 

part 774 continues to read as follows: 

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

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

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

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

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

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

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

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

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

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

FR 50661 (August 16, 2011). 

4. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, ECCN 8A018 is revised to 

read as follows: 

Supplement No. 1 to Part 774—the 

Commerce Control List 

* * * * * 

8A018 Items on the Wassenaar 

Arrangement Munitions List. 

No items currently are in this ECCN. 

See ECCN 8A620 for engines and 

propulsion systems for submersible 

vessels, submarine and torpedo nets, 

closed and semi-closed circuit 

(rebreathing) apparatus, and specially 

designed components therefor that, 

immediately prior to [Insert effective 

date of final rule that moves these 

items], were classified under ECCN 

8A018. See ECCNs 8A001, 8A002 and 

8A992 for controls on non-military 

submersible vehicles, oceanographic 

and associated equipment. 

5. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, add a new ECCN 8A620 

between ECCNs 8A018 and 8A992 to 

read as follows: 

8A620 Submersible vessels, 

oceanographic and associated 

equipment. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

8A620.b and .y.

NS Column 1. 

RS applies to entire 

entry except 

8A620.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

LVS: $1,500. 

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 

8A620. Paragraph (c)(1) of License 

Exception STA (§ 740.20(c)(1)) may not 

be used for any ‘‘end item’’ in 8A620, 

unless determined by BIS to be eligible 

for License Exception STA in 

accordance with § 740.20(g) (License 

Exception STA eligibility requests for 

‘‘600 series’’ end items). See § 740.20(g) 

for the procedures to follow if you wish 

to request new STA eligibility for ‘‘end 

items’’ under this ECCN 8A620 as part 


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of an export, reexport, or transfer (incountry) license application. ‘‘End 

items’’ under this entry that have 

already been determined to be eligible 

for License Exception STA are listed in 

Supplement No. 4 to part 774 and on 

the BIS Web site at www.bis.doc.gov. 

Paragraph (c)(1) of License Exception 

STA (§ 740.20(c)(1)) may be used for 

items in 8A620.x without the need for 

a determination described in 

§ 740.20(g). 

List of Items Controlled 

Unit: Equipment in number; parts, 

components, accessories and 

attachments in $ value. 

Related Controls: (1) Submersible 

vessels, oceanographic and associated 

equipment, and technical data 

(including software), and services 

directly related thereto, described in 22 

CFR part 121, Category XX, Submersible 

Vessels, Oceanographic and Associated 

Equipment, are subject to the 

jurisdiction of the International Traffic 

in Arms Regulations (ITAR). Parts, 

components, accessories, and 

attachments ‘‘specially designed’’ for 

defense articles in USML Category XX 

are controlled under USML sub-category 

XX(c). (2) See ECCN 0A919 for foreignmade ‘‘military commodities’’ that 

incorporate more than 10% U.S.-origin 

‘‘600 series’’ items. (3) For controls on 

non-military submersible vehicles, 

oceanographic and associated 

equipment, see ECCNs 8A001, 8A002, 

and 8A992. 

Related Definitions: N/A. 

Items: 

a. Submersible and semi-submersible 

vessels ‘‘specially designed’’ for a 

military use and not enumerated in the 

USML. 

Note: 8A620.a includes Deep Submergence 

Rescue Vehicles (DSRV) and Deep 

Submergence Vehicles (DSV). 

b. Submersible and semi-submersible 

vessels ‘‘specially designed’’ for cargo 

transport and ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ 

‘‘specially designed’’ therefor. 

c. Harbor entrance detection devices 

(magnetic, pressure, and acoustic) and 

controls therefor, not elsewhere 

specified on the USML or the CCL. 

d. Engines and propulsion systems, as 

follows: 

d.1. Diesel engines of 1,500 hp and 

over with rotary speed of 700 rpm or 

over ‘‘specially designed’’ for 

submarines; 

d.2. Electric motors ‘‘specially 

designed’’ for submarines and having all 

of the following: 

d.2.a. Power output of more than 

1,000 hp; 

d.2.b. Quick reversing; 

d.2.c. Liquid cooled; and 

d.2.d. Totally enclosed. 

d.3. Non-magnetic diesel engines with 

a power output of 50 hp or more and 

either of the following: 

d.3.a. Non-magnetic content 

exceeding 25% of total weight; or 

d.3.b. Non-magnetic parts other than 

crankcase, block, head, pistons, covers, 

end plates, valve facings, gaskets, and 

fuel, lubrication and other supply lines. 

Note: Other propulsion systems not 

specified in ECCN 8A620.d or elsewhere on 

the CCL (see Related Controls paragraph for 

this ECCN) and ‘‘specially designed’’ for an 

article controlled by USML Category XX are 

controlled by USML XX(b) or (c). 

e. Submarine nets and torpedo nets. 

f. Closed and semi-closed circuit 

(rebreathing) apparatus specially 

designed for military use and not 

enumerated elsewhere in the CCL or in 

the USML, and specially designed 

components for use in the conversion of 

open-circuit apparatus to military use. 

g. through w. [RESERVED] 

x. ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ that are 

‘‘specially designed’’ for a commodity 

enumerated in ECCN 8A620 (except for 

8A620.b) and not specified elsewhere in 

the CCL. 

Note 1: Forgings, castings, and other 

unfinished products, such as extrusions and 

machined bodies, that have reached a stage 

in manufacturing where they are clearly 

identifiable by material composition, 

geometry, or function as commodities 

controlled by ECCN 8A620.x are controlled 

by ECCN 8A620.x. 

Note 2: ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ specified in 

ECCN 8A620.y are subject to the controls of 

that paragraph. 

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

‘‘accessories and attachments’’ 

‘‘specially designed’’ for a commodity 

subject to control in this ECCN and not 

elsewhere specified in the CCL, as 

follows: 

y.1. Ship service hydraulic and 

pneumatic systems; 

y.2. Internal communications systems; 

y.3. Filters and filter assemblies for 

hydraulic, oil and fuel systems; 

y.4. Galleys and related equipment; 

y.5. Hydraulic and fuel hoses, straight 

and unbent lines, fittings, clips, 

couplings, and brackets; 

y.6. Lavatories and sanitary systems; 

y.7. Magnetic compass, magnetic 

azimuth detector; 

y.8. Medical facilities and related 

equipment; 

y.9. Potable water storage systems; 

y.10. Filtered and unfiltered panel 

knobs, indicators, switches, buttons, 

and dials; 

y.11. Emergency lighting; 

y.12. Analog gauges and indicators; 

y.13. Audio selector panels; 

y.14. Atmosphere control and 

monitoring equipment; 

y.15. Environmental control and 

monitoring equipment; 

y.16. Trash handling systems; 

y.17. Mooring, towing and dry 

docking equipment; 

y.18. Anchoring systems; 

y.19. Material corrosion and fouling 

control systems; 

y.20. Damage control equipment. 

y.21. to y.98 [RESERVED] 

y.99. Commodities not identified on 

the CCL that (i) have been determined, 

in an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 8A620 

6. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, add a new ECCN 8B620 

immediately following ECCN 8B001 to 

read as follows: 

8B620 Test, inspection, and 

production ‘‘equipment’’ and 

related commodities ‘‘specially 

designed’’ for the ‘‘development’’ or 

‘‘production’’ of commodities 

enumerated in ECCN 8A620. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

8B620.b and .y.

NS Column 1. 

RS applies to entire 

entry except 

8B620.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

LVS: $1,500. 

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 

8B620. 

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 

8A620 (except for 8A620.b and .y) and 

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

and attachments’’ ‘‘specially designed’’ 

therefor. 


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b. Test, inspection, and production 

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

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

commodities enumerated in ECCN 

8A620.b and ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ 

‘‘specially designed’’ therefor. 

c. through x. [RESERVED] 

y. Specific test, inspection, and 

production ‘‘equipment’’ ‘‘specially 

designed’’ for the ‘‘production’’ or 

‘‘development’’ of commodities 

enumerated in ECCN 8A620 (except for 

8A620.y) and ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories and attachments’’ 

‘‘specially designed’’ therefor, as 

follows: 

y.1. through y.98 [RESERVED] 

y.99. Commodities not identified on 

the CCL that (i) have been determined, 

in an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 8B620. 

7. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, add a new ECCN 8D620 

between ECCN 8D002 and 8D992 to 

read as follows: 

8D620 Software ‘‘specially designed’’ 

for the ‘‘development,’’ 

‘‘production,’’ operation or 

maintenance of submersible 

vessels, oceanographic and 

associated equipment controlled by 

8A620 or equipment controlled by 

8B620. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

8D620.b and .y.

NS Column 1. 

RS applies to entire 

entry except 

8D620.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

CIV: N/A. 

TSR: N/A. 

STA: Paragraph (c)(2) of License 

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

EAR may not be used for any software 

in 8D620. 

List of Items Controlled 

Unit: $ value. 

Related Controls: (1) Software directly 

related to articles enumerated in USML 

Category XX is controlled under USML 

Category XX(d). (2) See ECCN 0A919 for 

foreign made ‘‘military commodities’’ 

that incorporate more than 10% U.S.- 

origin ‘‘600 series’’ items. 

Related Definitions: N/A. 

Items: 

a. ‘‘Software’’ ‘‘specially designed’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by ECCN 8A620 

or ECCN 8B620 (except for ECCN 

8A620.b and .y or 8B620.b and .y). 

b. ‘‘Software’’ ‘‘specially designed’’ 

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

operation, or maintenance of 

commodities controlled by ECCN 

8A620.b or ECCN 8B620.b. 

c. to x. [RESERVED] 

y. Specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘development,’’ 

‘‘production,’’ operation, or 

maintenance of commodities 

enumerated in ECCN 8A620.y or 

8B620.y, as follows: 

y.1. through y.98 [RESERVED] ] 

y.99. Software not identified on the 

CCL that (i) has been determined, in an 

applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 8D620. 

8. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, add a new ECCN 8E620 

between ECCN 8E002 and 8E992 to read 

as follows: 

8E620 ‘‘Technology’’ ‘‘required’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of submersible 

vessels, oceanographic and 

associated equipment controlled by 

8A620, equipment controlled by 

8B620, or software controlled by 

8D620. 

License Requirements 

Reason for Control: NS, RS, AT. 

Control(s) Country chart 

NS applies to entire 

entry except 

8E620.b and .y.

NS Column 1. 

RS applies to entire 

entry except 

8E620.y.

RS Column 1. 

AT applies to entire 

entry.

AT Column 1. 

License Exceptions 

CIV: N/A. 

TSR: N/A. 

STA: Paragraph (c)(2) of License 

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

EAR may not be used for any technology 

in 8E620. 

List of Items Controlled 

Unit: N/A. 

Related Controls: (1) Technical data 

directly related to articles enumerated 

in USML Category XX are controlled 

under USML Category XX(d). (2) See 

ECCN 0A919 for foreign made ‘‘military 

commodities’’ that incorporate more 

than 10% U.S.-origin ‘‘600 series’’ 

items. 

Related Definitions: N/A. 

Items: 

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

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

commodities controlled by ECCN 8A620 

or 8B620 or ‘‘software’’ controlled by 

ECCN 8D620, except for ECCN 8A620.b 

and .y, 8B620.b and .y, or 8D620.b and 

.y. 

b. ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishment of 

commodities controlled by ECCN 

8A620.b or 8B620.b or ‘‘software’’ 

controlled by ECCN 8D620.b. 

c. through x. [RESERVED] 

y. Specific ‘‘technology’’ ‘‘specially 

designed’’ for the ‘‘development,’’ 

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul, or 

refurbishment of commodities 

controlled by ECCN 8A620.y or 8B620.y 

or ‘‘software’’ controlled by ECCN 

8D620.y, as follows: 

y.1. through y.98 [RESERVED] 

y.99. ‘‘Technology’’ not identified on 

the CCL that (i) has been determined, in 

an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 8E620. 

Dated: December 16, 2011. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–32868 Filed 12–22–11; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF STATE 

22 CFR Part 121 

RIN 1400–AC99 

[Public Notice 7736] 

Amendment to the International Traffic 

in Arms Regulations: Revision of U.S. 

Munitions List Category VI 

AGENCY: Department of State. 

ACTION: Proposed rule. 

SUMMARY: As part of the President’s 

Export Control Reform effort, the 

Department of State proposes to amend 

the International Traffic in Arms 

Regulations (ITAR) to revise Category VI 

(surface vessels of war and special naval 


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