Vol. 79 Tuesday, 

No. 92 May 13, 2014 

Part III 

Department of Commerce 

Bureau of Industry and Security 

15 CFR Parts 732, 734, 736, et al. 

Revisions to the 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); 

Final Rule 


tkelley on DSK3SPTVN1PROD with RULES3
27418 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 732, 734, 736, 740, 742, 

744, 748, 758, 772, 774 

[Docket No. 130110030–3740–02] 

RIN 0694–AF87 

Revisions to the 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: Interim final rule with request 

for comments. 

SUMMARY: This interim final rule adds 

controls to the Export Administration 

Regulations (EAR) for spacecraft and 

related items that the President has 

determined no longer warrant control 

under United States Munitions List 

(USML) Category XV—spacecraft and 

related items. New Export Control 

Classification Numbers (ECCNs) 9A515, 

9B515, 9D515, and 9E515 created by 

this rule and existing ECCNs on the 

Commerce Control List (CCL) will 

control such items. This rule also 

revises various sections of the EAR to 

provide the proper level of control for 

the new ECCNs. 

This rule is being published in 

conjunction with the publication of a 

Department of State, Directorate of 

Defense Trade Controls rule revising 

USML Category XV to control those 

articles the President has determined 

warrant control on the USML. Both 

rules are part of the President’s Export 

Control Reform Initiative. The revisions 

in this final rule are also part of 

Commerce’s retrospective regulatory 

review plan under Executive Order (EO) 

13563 (see the SUPPLEMENTARY

INFORMATION for availability of the plan). 

This rule is being published as an 

interim final rule because the 

Departments of Commerce and State 

acknowledge that additional internal 

analysis of and industry input regarding 

the control threshold for various aspects 

of the amendments is warranted, 

particularly with respect to civil and 

commercial remote sensing satellites 

and civil and commercial space flightrelated items. The Departments did not 

want to wait until this review is done 

to publish this rule in final form 

because of the substantial national and 

economic security benefits that will 

flow from the various amendments to 

the controls on satellites and related 

items. 

DATES: Effective Date: This rule is 

effective June 27, 2014 except for 

amendatory instruction 8, which is 

effective July 1, 2014, and amendatory 

instructions 28–47, 49–50, 52, and 54, 

which are effective November 10, 2014. 

Comment Date: Comments must be 

received by November 10, 2014. 

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. 

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 regulatory 

changes pertaining to satellites, 

spacecraft, and related items, 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 

The Bureau of Industry and Security 

(BIS) is publishing this interim final 

rule with request for comments as part 

of the Administration’s Export Control 

Reform (ECR) Initiative. President 

Obama directed the Administration in 

August 2009 to conduct a broad-based 

review of the U.S. export control system 

to identify additional ways to enhance 

national security. In April 2010, thenSecretary of Defense Robert M. Gates, 

describing the initial results of that 

effort, explained that fundamental 

reform of the U.S. export control system 

is necessary to enhance our national 

security. The implementation of ECR 

includes amending the International 

Traffic in Arms Regulations (ITAR) and 

its U.S. Munitions List (USML) so that 

they control only those items that 

provide the United States with a critical 

military or intelligence advantage or 

otherwise warrant such controls, and 

amending the Export Administration 

Regulations (EAR) to control the 

formerly ITAR-controlled items that do 

not warrant the controls of the ITAR. 

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 ITAR. The 

2013 NDAA authorized the President, 

pursuant to section 38(f) of the Arms 

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

2778(f)), to review Category XV of the 

USML ‘‘to determine what items, if any, 

no longer warrant export controls 

under’’ the AECA. On May 24, 2013, the 

Department of State, Directorate of 

Defense Trade Controls (DDTC) 

published a proposed rule, Amendment 

to the International Traffic in Arms 

Regulations: Revision of U.S. Munitions 

List Category XV and Definition of 

‘‘Defense Service’’ (78 FR 31444) (herein 

‘‘the companion proposed DDTC rule’’) 

setting forth the proposed revised USML 

Category XV. On the same day, BIS 

published a companion proposed rule, 

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) (78 FR 31431) (herein ‘‘the May 

24 (spacecraft) rule’’), describing the 

revisions to the EAR required to 

exercise control over those spacecraft 

and related items no longer listed in 

USML Category XV and setting forth the 

proposed 9x515 ECCNs. 

This interim final rule implements the 

proposal of the May 24 (spacecraft) rule 

to create four new 9x515 ECCNs in CCL 

Category 9 (ECCNs 9A515, 9B515, 

9D515, and 9E515) to describe the EAR 

controls over items the President 

determines no longer warrant control 

under USML Category XV and that are 

not otherwise within the scope of an 

existing ECCN. New ECCN 9A515 

applies to spacecraft, ground stations, 

and ‘‘specially designed’’ parts, 

components, accessories and 

attachments. New ECCN 9B515 applies 

to related test, inspection and 

production equipment and the 

‘‘specially designed’’ parts and 

components. New ECCN 9D515 applies 

to related software. New ECCN 9E515 

applies to related technology. 

This rule also makes a number of 

conforming changes to the EAR and 

existing ECCNs to implement the 

creation of the 9x515 ECCNs and the 

appropriate controls on the export of 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27419 

those items. In several existing ECCNs, 

BIS added or revised the related 

controls to provide cross references to 

relevant paragraphs in the revised 

Category XV or the new 9x515 ECCNs. 

The sections below set out the issues 

identified in the public comments to the 

May 24 (spacecraft) rule and describe 

BIS responses to those comments and 

changes from the proposed text. 

This rule will be implemented in two 

stages. On the first effective date, 45 

days following the publication of this 

interim final rule, the controls on 

radiation-hardened microelectronic 

circuits in Category XV(d) will be 

deleted from the USML, and 

microelectronic circuits will be removed 

from USML Category XV(e). In addition, 

the ITAR controls on software and 

technical data directly related to such 

microelectronic circuits will be removed 

from USML XV(f). The EAR will 

simultaneously create ECCNs 9A515.d 

and .e to control radiation-hardened 

microelectronic circuits, and 9D515.d 

and .e and 9E515.d and .e, to control 

software and technology specially 

designed for or required for such 

radiation-hardened microelectronic 

circuits. All changes in the EAR outside 

the CCL needed to give effect to these 

new controls will also become effective 

45 days following the publication of this 

interim final rule. The reason for the 45- 

day period is explained in response to 

public comment #38 below. 

On the second effective date, 180 days 

following the publication of this final 

rule, the remainder of USML Category 

XV will be revised. The remaining 

changes in this rule will then become 

effective, including the revisions to 

several non-9x515 ECCNs, the rest of 

ECCN 9A515 to provide the controls in 

paragraphs .a, .b, .x and .y, adding 

ECCN 9B515, and the rest of ECCNs 

9D515 and 9E515 to control software 

and technology specially designed for or 

required for the remaining items that 

become subject to the controls of the 

9x515 ECCN simultaneously with the 

amendments to the rest of USML XV. 

This interim final rule requests public 

comment on the changes to the EAR 

implemented in this rule and the 

continued applicability of USML 

Category XV of the ITAR to commercial 

and civil spacecraft. In particular, BIS 

seeks comments on the continued 

application of USML controls to civil 

and commercial communications 

satellites, civil and commercial remote 

sensing satellites, commercial space 

launch vehicles, human spaceflight and 

academic or scientific satellites and 

other spacecraft. BIS would like to study 

if controls can and should be revised to 

allow continued control of spacecraft 

with uniquely military or intelligence 

related capabilities on the USML, while 

allowing most, if not all, civil, 

commercial and scientific spacecraft to 

be shifted to the CCL. In addition, BIS 

seeks comments on any other aspect of 

this interim final rule and, in particular, 

whether the new controls described in 

this interim final rule are clear and, if 

not, how they could be revised to help 

ensure understanding of and 

compliance with the controls. DDTC 

will accept comments on paragraphs 

(a)(7) and (e)(11) of USML Category XV 

and ITAR § 124.15, as described in its 

interim final rule amending USML 

Category XV. Any revisions made by 

DDTC to the ITAR as a result of those 

comments may necessitate further 

revisions to the EAR, including to the 

new license documentation 

requirements for the export of satellites 

for launch, described in the new 

paragraph (y) of Supplement No. 2 to 

Part 748. 

As required by Executive Order (EO) 

13563, BIS intends to review this rule’s 

impact on the licensing burden on 

exporters. Commerce’s full plan is 

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

news/2011/08/23/commerce-plananalysis-existing-rules. Data are 

routinely collected, including through 

the comments to be submitted, and new 

information and results from AES data 

on an ongoing basis. These results and 

data have been, and will continue to 

form, the basis for ongoing reviews of 

the rule and assessments of various 

aspects of the rule. As part of its plan 

for retrospective analysis under EO 

13563, BIS intends to conduct periodic 

reviews of this rule and to modify, or 

repeal, aspects of this rule, as 

appropriate, and after public notice and 

comment. With regard to a number of 

aspects of this rule, assessments and 

refinements will be made on an ongoing 

basis. This is particularly the case with 

regard to possible modifications that 

will be considered based on public 

comments described above. 

Response to Comments 

BIS received thirty-eight public 

comments on the May 24 (spacecraft) 

rule before the close of the public 

comment period on July 8, 2013. The 

following is a summary of those 

comments, along with BIS’s responses 

and descriptions of all changes from the 

May 24 (spacecraft) rule. The comments 

are organized by topic, with similar 

comments grouped together under the 

same heading. BIS is referring to the 

new ECCNs 9A515, 9B515, 9D515 and 

9E515 collectively as 9x515. In the May 

24 (spacecraft) rule, BIS referred to these 

proposed ECCNs as the ‘‘500 series,’’ 

and many comments refer to the ‘‘500 

series.’’ 

General Comments 

Comment #1: Twenty commenters 

expressed overall support for the May 

24 (spacecraft) rule. 

Response to Comment #1: BIS is 

pleased with the overwhelmingly 

positive response to the concept of 

moving commercial, scientific, weather 

and other less sensitive spacecraft and 

parts and components, and related 

software and technology, from the 

USML to the CCL in order to 

accomplish the national and economic 

security objectives of this part of the 

Export Control Reform effort. 

Comment #2: One commenter 

requested that BIS review the effective 

date of the entire rule to determine if a 

six month delayed effective date is 

necessary to ensure proper 

implementation of the new regime by 

the U.S. licensing agencies and the 

effected industry. 

Response to Comment #2: BIS has 

determined that, in general, a six-month 

period is required to allow exporters, 

reexporters and other parties sufficient 

time to study the new rules, to reclassify 

their products, and to update their 

compliance systems for transitioning 

‘‘spacecraft’’ and related items. 

However, as discussed in detail below 

in the response to comments regarding 

radiation-hardened microelectronic 

circuits, controls on such items will 

transition from the USML to CCL on 

June 27, 2014. Therefore, this interim 

final rule contains two effective dates to 

accommodate the interests of the two 

different industries in a manner that 

does not compromise the national 

security, foreign policy, and other 

objectives of these controls. 

Comment #3: Three commenters 

asked BIS to address how this final rule 

and the DDTC final rule for USML 

Category XV, published in tandem with 

this rule, will apply to items previously 

exported from the United States. 

Response to Comment #3: This 

interim final rule applies to all items 

subject to the EAR on the date this rule 

becomes effective, regardless of their 

geographic location or when they were 

originally exported. The transition plan 

for items moving from the USML to the 

CCL as part of Export Control Reform 

was described in final rules published 

by BIS and DDTC on April 16, 2013; 78 

FR 22660 (Revisions to the Export 

Administration Regulations: Initial 

Implementation of Export Control 

Reform) and 78 FR 22740 (Amendment 

to the International Traffic in Arms 

Regulations: Initial Implementation of 

Export Control Reform). These rules 


tkelley on DSK3SPTVN1PROD with RULES3
27420 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

contain a description of how items are 

controlled during the transition period. 

Any item subject to the EAR, including 

under these new regulations, must 

comply with the EAR for all subsequent 

exports, reexports and transfers (incountry) beginning on the date the 

change becomes effective. Any foreign 

parties who wish to reexport or 

retransfer items transitioned to a 9x515 

or other ECCN should reclassify their 

items and comply with the EAR by the 

time the change becomes effective. If the 

reexport or retransfer is authorized 

under an active DDTC license, and the 

party wishes to engage in the 

transaction under the EAR, they should 

review the ITAR Initial Implementation 

of Export Control Reform at 78 FR 22747 

or contact DDTC for further guidance. 

Comment #4: One commenter claimed 

that most companies will not avoid 

future DDTC licensing fees because one 

or more products will remain on the 

USML. 

Response to Comment #4: BIS agrees 

that some companies involved in the 

satellite industry will now have items 

subject to both the EAR and the ITAR. 

However, BIS believes that many 

companies will now only have items 

subject to the EAR and others’ items 

will remain wholly subject to the ITAR. 

It is not the purpose of the Export 

Control Reform effort to remove all 

items from the control of the ITAR or 

EAR merely for the sake of changing 

controls. Rather, the purpose is to apply 

the right level of control to items of 

different sensitivities based on national 

security and foreign policy 

considerations. In general, items that 

warrant essentially worldwide controls 

with few exceptions and that otherwise 

warrant the controls of the ITAR for the 

reasons described in the preamble are in 

USML Category XV. Other items 

pertaining to satellites and other 

spacecraft that do not warrant control 

on the ITAR, but that nonetheless 

warrant or are required to be controlled, 

will become subject to the EAR. The 

structure of the EAR allows for more 

tailored controls. Less sensitive items 

can be controlled differently to different 

destinations under different 

circumstances. 

Comment #5: Two commenters 

recommended a formal interagency 

review process for continued revision of 

USML Category XV and the transition of 

items to the 9x515 ECCNs. 

Response to Comment #5: BIS agrees 

that a formal interagency review process 

for continued revision of USML 

Category XV and the transition of items 

to the 9x515 ECCNs is warranted. BIS 

and DDTC are publishing their 

respective rules as interim final rules 

because both acknowledge that several 

parts of the new regulations warrant 

additional and, indeed, continued 

review based on evolving technologies 

and commercial applications for what 

were once exclusively military or 

intelligence applications. In particular, 

BIS, DDTC, and the other relevant 

agencies will continue to study the 

interim final controls on remote sensing 

satellites to determine whether 

additional revisions are warranted. BIS 

and DDTC acknowledge that, as 

published, the ITAR will continue to 

control some satellites that have civil or 

commercial application. BIS and DDTC 

may or may not determine that 

additional revisions are warranted to 

these and the other controls in these 

interim final rules. They will publish a 

final rule taking into account public 

comments received, within six months 

of the effective date of this rule. The 

Departments of State, Commerce, and 

Defense will also announce separately 

their plans to re-create the Space 

Technology Working Group in order to 

establish a regular process for 

discussing with industry developments 

in space-related technologies and 

applications. 

Comment #6: One commenter 

suggested that BIS revise 15 CFR 

732.2(b)(1) to read: ‘‘If your technology 

or software is publicly available and 

therefore outside the scope of the EAR, 

you may proceed with the export or 

reexport.’’ The commenter argues that 

deletion of the phrase ‘‘if you are not a 

U.S. person subject to General 

Prohibition Seven’’ would be consistent 

with all other parts of the EAR, which 

treat publicly available information as 

outside the scope of the EAR and with 

the proposed revisions to 22 CFR 120.9 

that ‘‘defense service’’ means furnishing 

of assistance using ‘‘other than public 

domain information’’ in the companion 

proposed DDTC rule. 

Response to Comment #6: BIS does 

not accept this comment because it is 

outside the scope of the May 24 

(spacecraft) rule and, in any event, the 

concern is unwarranted. By definition, 

technology or software that is publicly 

available is not subject to the EAR. See 

§ 734.3(b)(3) of the EAR. Additionally, 

General Prohibition No. 7 imposes 

restrictions on all U.S. persons engaged 

in prohibited activities regardless of 

whether any technology involved is 

publicly available. Therefore, the 

removal of the reference to General 

Prohibition No. 7 would be misleading. 

Comment #7: One commenter argued 

that only half of the countries listed in 

Country Group D:5 are labeled in 22 

CFR 126.1 as subject to arms embargoes 

(10 U.N. embargoes plus three 

unilateral—Burma, China, Sudan). The 

commenter argues that, therefore, the 

restrictions on exports to the countries 

listed in Country Group D:5 in the EAR 

May 24 (spacecraft) rule are more 

restrictive than apparently intended, 

identifying the proposed revisions to 

§§ 734.4, 736.2(b)(3), 740.2(a)(12), 

740.9(a), 740.10(a)(3)(viii) and 

(b)(3)(i)(F), 742.4(b)(1)(ii), and 

742.6(b)(1). 

Response to Comment #7: BIS does 

not accept the change suggested by the 

commenter. Country Group D:5 

accurately reflects the countries 

currently identified in § 126.1 of the 

ITAR as being subject to a U.S. arms 

embargo. BIS will review all license 

applications for export to destinations 

in Country Group D:5 consistent with 

the applicable U.S. arms embargo policy 

for that destination set forth in § 126.1 

of the ITAR. This means, for example, 

that if the State Department would deny 

a license to export a USML Category XV 

item to a country in the ITAR’s § 126.1 

then the Commerce Department would 

deny a license to export a 9A515 item 

to the same country, all other facts being 

the same. If the State Department would 

have approved the license, then the 

Commerce Department would approve 

the license, all other facts being the 

same. 

De Minimis Comments 

Comment #8: One commenter 

suggested revising the de minimis level 

for foreign-made commercial satellites 

or components containing 9A515 parts 

and components so that the foreignmade satellites could be reexported to 

the People’s Republic of China (PRC) 

without a license as not subject to the 

EAR if they contained 25% or less U.S.- 

origin controlled content. 

Response to Comment #8: BIS rejects 

the change suggested by the commenter. 

BIS has determined that the 2013 NDAA 

authorizing the removal of ‘‘spacecraft’’ 

and related items from the USML 

mandates that de minimis treatment is 

not available for any 9A515 items 

incorporated into ‘‘spacecraft’’ 

reexported to the PRC. Even if BIS had 

the discretion under the 2013 NDAA to 

allow 25% de minimis treatment for 

reexports to the PRC, BIS has 

determined that it is in the national 

security and foreign policy interests of 

the United States to maintain the 0% de 

minimis treatment for 9A515 items with 

respect to their export and reexport to 

the PRC, in whole or as part of foreignmade systems and other items. 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27421 

Licensing Requirements and Licensing 

Policy Comments 

Comment #9: One commenter 

suggested that BIS should ensure dual 

licensing is not required. 

Response to Comment #9: As part of 

the review of USML Category XV and 

the public comments, BIS has worked 

diligently to avoid the potential for dual 

license requirements. However, in the 

event that a dual license requirement 

does arise, as part of the initial 

implementation of Export Control 

Reform, BIS and DDTC created new 

regulatory mechanisms to allow DDTC 

to license items subject to the EAR 

when used in or with defense articles on 

the USML. See § 734.3(e) of the EAR 

and § 120.5(b) of the ITAR. 

Additionally, as described above, to 

address the potential for dual licensing, 

the revised USML Category XV and the 

9x515 controls have been revised, 

through the addition of a note to USML 

Category XV and to 9A515 to allow the 

incorporation of USML items into 

spacecraft controlled in 9A515 without 

the resultant satellite’s being subject to 

the ITAR. 

Comment #10: One commenter 

requested that BIS clarify the on-orbit 

satellite registration transfer licensing 

requirements. For example, are license 

requirements based on purchaser’s place 

of incorporation or ownership? 

Response to Comment #10: BIS 

controls, within the definition of 

‘‘reexport’’ the transfer of registration of 

a satellite or operational control over a 

satellite from a party resident in one 

country to a party resident in another 

country. For transfers to corporations, 

licensing will be based on the country 

of residency of the corporation, such as 

the country of incorporation or the 

country of its primary place of business. 

See § 772.1 of the EAR. BIS appreciates 

that this part of the definition, which 

has not been applied since satellites 

were transferred to the control of the 

State Department in 1999, will require 

refinement as new business patterns are 

presented. BIS encourages the public to 

submit comments while this rule is an 

interim final rule to help clarify the 

scope of the licensing and other 

obligations with such transactions. 

Comment #11: One commenter asked 

BIS to clarify the phrase ‘‘destined to a 

country’’ in the context of license 

requirements for the export and reexport 

of ‘‘spacecraft.’’ Specifically, the 

requester asked if an export is only to 

the end-user country, or whether it 

would include the country of any party 

in temporary contact with the item 

while it is transiting one of these 

countries. The requester also asked, if a 

commercial communications satellite 

incorporating a U.S. component 

controlled under 9A515.x were to 

transit through, be handled by a 

national of (e.g., in a transport 

container), or be launched from a 

country listed in Group D:5, would a de 

minimis rule of 0% be applicable? 

Response to Comment #11: The EAR 

generally imposes licenses requirements 

based on the country of ultimate 

destination. With the exception of those 

countries identified in General 

Prohibition 8 (§ 736.2(b)(8) of the EAR), 

transiting a country en-route to the 

ultimate destination is not a licensable 

event. However, under the EAR, 

‘‘spacecraft’’ have two potential 

countries of ultimate destination, the 

country where a space launch occurs 

and the country that will have control 

over the ‘‘spacecraft’’ after launch. The 

0% de minimis threshold for D:5 

countries applies to both the country of 

launch and the country of control. 

Comment #12: One commenter stated 

that the last sentence of proposed 

§ 742.6(b)(1) set out a policy of denial 

for 9x515 items to the PRC that is more 

restrictive than the case-by-case review 

for licenses for ‘‘600 series’’ items to the 

PRC and stated that treating the 9x515 

items more restrictively than the ‘‘600 

series’’ with respect to licensing policy 

to the PRC is inconsistent with the 

reasoning for treating 9x515 more 

liberally than ‘‘600 series’’ in other 

respects, such as License Exception 

Strategic Trade Authorization (STA) 

restrictions to other countries. 

Response to Comment #12: BIS has 

determined that the 2013 NDAA 

authorizing the removal of ‘‘spacecraft’’ 

and related items from the USML 

mandates a policy of denial for export 

licenses of 9x515 items to the PRC. BIS 

has adopted such a policy of denial with 

regard to National Security controls in 

§ 742.4(b)(1)(iii) and with regard to 

Regional Stability controls in 

§ 742.6(b)(1). As described in 

§ 742.4(b)(1)(ii) and § 742.6(b)(1) exports 

of both 9x515 and ‘‘600 series’’ items 

destined to countries in Country Group 

D:5, including the PRC, will be 

reviewed consistent with the review 

policies set forth in § 126.1 of the ITAR 

for U.S. arms embargos. 

Comment #13: One commenter stated 

that it is inappropriate for BIS to adopt 

a policy of denial for exports to 

countries subject to arms embargoes 

(such as the PRC) of 9x515 items, which 

include many items that are commercial 

items with no military or intelligence 

applications. 

Response to Comment #13: BIS has 

determined that the 2013 NDAA 

authorizing the removal of ‘‘spacecraft’’ 

and related items from the USML 

mandates a policy of denial for export 

licenses of 9x515 items to the PRC, 

North Korea, and any country that is a 

state sponsor of terrorism. Therefore, 

BIS has adopted a policy of denial for 

such items to these destinations. 

Further, BIS has determined that the 

2013 NDAA mandates a presumption of 

denial for the export of 9x515 items to 

any country with respect to which the 

United States maintains a 

comprehensive arms embargo. To give 

effect to the United States arms 

embargoes, BIS will review all 9x515 

licenses consistent with the United 

States arms embargo policies set forth in 

§ 126.1 of the ITAR. 

Comment #14: One commenter stated 

that § 750.7(i) of the EAR provides that 

a foreign entity is not bound by the prior 

STA Consignee Statement and 

Destination Control Statement 

associated with 9x515 and ‘‘600 series’’ 

items when retransferring or reexporting 

the items under the authority of de 

minimis after integration into a larger 

assembly or as a result of an additional 

applicable license exception, providing 

examples of License Exception 

Additional Permissive Reexports (LE 

APR at § 740.16) and License Exception 

Temporary Imports, Exports and 

Reexports (LE TMP at § 740.9). 

Response to Comment #14: Section 

750.7(i) of the EAR is a provision that 

allows an exporter who obtained an 

individually validated licenses from BIS 

to no longer be bound by the license 

conditions attached to that 

authorization in the event that the EAR 

has been amended to either authorize 

the transaction on the license under a 

license exception or to remove the 

license requirement from that 

transaction. It has no effect in the 

absence of a license. 

Additionally, for an export under 

License Exception STA to be valid, all 

parties must ensure compliance with all 

the requirements of License Exception 

STA, including those attested to in the 

Prior Consignee Statement. Further, any 

foreign-origin item incorporating US 

origin 9x515 or ‘‘600 series’’ content 

will always be subject to the 0% de 

minimis threshold for shipments to 

countries in Country Group D:5 and will 

require a license for any such 

shipments. 

Comment #15: One commenter asked 

BIS to create a streamlined export 

licensing process for programs (such as 

insurance) that typically include 

multiple parties, or are in multiple 

countries with multiple third-country 

nationals and dual nationals. 

Response to Comment #15: BIS 

licensing processes and procedures are 


tkelley on DSK3SPTVN1PROD with RULES3
27422 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

described in Part 748 of the EAR, and 

applications are submitted through the 

SNAP–R application on the BIS Web 

site. One aspect of the reform effort that 

is outside the scope of this rule but 

relevant to the comment is that BIS has 

the authority to generally structure 

licenses in a flexible manner to 

accommodate both applicant’s issues as 

well as the national security, foreign 

policy, and other reasons the items at 

issue warranted control. BIS thus 

encourages the commenter to contact 

the relevant licensing officer to discuss 

issues regarding the structuring of any 

particular license applications the 

commenter has in mind. 

Comment #16: One commenter 

recommended that BIS create a CCL 

licensing practice or policy by which a 

satellite manufacturer or operator could 

obtain a single cradle-to-grave program 

license that would cover all 

manufacturer-client interactions, 

beginning with marketing and sales 

activities and including contract 

discussions, delivery negotiations, and 

on-orbit support. Even if a separate 

license for launch services would also 

be required, a single license covering all 

other activities would be invaluable. 

Response to Comment #16: BIS agrees 

that having a single program under one 

license is a desirable outcome for 

compliance purposes. If an applicant 

can define the total activity that is 

subject to EAR—namely, the end users, 

end uses, destinations, and specific 

items at issue in the program at issue— 

BIS generally has the authority and 

capability to approve such transactions 

under a single license. With respect to 

marketing and sales activities that may 

occur without a specific license, the 

commenter should review License 

Exception Technology and Software 

Unrestricted (TSU) (§ 740.13). 

License Exceptions 

Comment #17: One commenter 

suggested deleting § 740.2(a)(7) to allow 

the use of license exceptions for the 

export of ‘‘space-qualified’’ items that 

had remained subject to the EAR. 

Response to Comment #17: BIS 

accepts the change suggested by the 

commenter. Section 740.2(a)(7) was a 

limitation on the use of license 

exceptions for certain ‘‘space-qualified’’ 

items that remained subject to the EAR 

following the transfer of jurisdiction for 

satellites and related items to DDTC. 

With the revision to USML Category XV, 

BIS has determined that it is 

inconsistent with the purpose of the 

new controls and the availability of 

certain license exceptions, to continue 

to prohibit the use of license exceptions 

for ‘‘space-qualified’’ items controlled in 

other ECCNs. To determine which 

license exceptions are available for each 

ECCN, please review the specific ECCN 

and Part 740 of the EAR. 

Comment #18: One commenter 

suggested revising proposed 

§ 740.2(a)(17) to allow License 

Exception STA for technology described 

in proposed 9E515.b. 

Response to Comment #18: BIS does 

not accept the change suggested by the 

commenter. BIS has revised 9E515 to 

clarify the technology controlled in 

paragraph .b. Section 740.2(a)(17) still 

prohibits the use of License Exception 

STA for the technology described in 

9E515.b (and 9E515.d and .e with 

respect to radiation-hardened 

microelectronic circuits), but the 

universe of technology described has 

been revised so that it is more clear. 

Comment #19: One commenter 

suggested allowing a license exception 

for ‘‘deemed exports’’ for amateur radio 

satellite design and construction to 

allow the free exchange of ideas, 

software, and other activities pertaining 

to amateur radio satellite design and 

construction with foreign nationals who 

are citizens of nations listed in the 

License Exception STA Country List. 

Response to Comment #19: Security 

concerns resulting from the deemed 

export of technology in 9E515.b that led 

to the restriction on STA eligibility do 

not depend on the commercial nature of 

the transactions. Therefore, BIS does not 

accept the change suggested by the 

commenter. 

Comment #20: One commenter noted 

that the ITAR contains a specific 

exemption for the export by U.S. 

institutions of higher learning of 

satellites for fundamental research 

purposes under § 123.16(b)(10), which 

has not been incorporated into the 

proposed EAR 500 series. 

Response to Comment #20: BIS 

accepts the change suggested by the 

commenter and has created a new 

paragraph (e) in License Exception 

Aircraft and Vessels (AVS) to recreate 

the scope of ITAR § 123.16(b)(10) in the 

EAR in a manner consistent with the 

structure of the EAR and the less 

sensitive nature of the items that have 

moved from USML Category XV. The 

new § 740.15(e) allows the export of 

‘‘spacecraft’’ and other commodities 

controlled in 9A515 by accredited 

institutions of higher learning in the 

United States to countries that are 

members of NATO (see § 120.31 of the 

ITAR), European Space Agency or the 

European Union, or are major nonNATO allies (see § 120.32 of the ITAR), 

and other countries that are not subject 

to embargoes, when fabricated only for 

the purpose of fundamental research. 

This rule also changes the name of 

License Exception AVS to ‘‘Aircraft, 

Vessels, and Spacecraft.’’ 

Comment #21: Two commenters 

stated that multiple provisions in the 

ITAR that are essential to universitybased research have not been carried 

over to the EAR, including 22 CFR 

123.16, 22 CFR 125.4(b)(7), and 22 CFR 

125.4(b)(9). 

Response to Comment #21: The 

commenters’ assertions are not 

completely correct. Certain ITAR license 

exemptions identified by the commenter 

have preexisting parallel provisions in 

the EAR. For exemptions found in ITAR 

§ 125.4(b)(7), the commenter should 

review License Exception TMP at 

§ 740.9(b)(3). For those found in ITAR 

§ 125.4(b)(9), the commenter should 

review License Exception TMP at 

§ 740.9(a)(1) and License Exception 

GOV at § 740.11(b). As detailed above in 

the response to Comment #20, ITAR 

§ 123.16(b)(10) has been replicated in 

the EAR in the new paragraph (e) of 

License Exception AVS (§ 740.15). 

Additionally, License Exception STA at 

§ 740.20 does authorize many of the 

transactions authorized under ITAR 

§ 123.16(b)(10) and the other 

exemptions. If, upon further review, the 

commenter identifies transactions that 

would be exempt from an individual 

licensing requirement in the ITAR that 

would not be for the same transaction 

involving items that have become 

subject to the EAR, all other facts being 

equal, then it should inform BIS of such 

information. 

Comment #22: Two commenters 

stated that the utility of license 

exceptions in the EAR will be 

significantly limited for any items or 

technologies that are subject to control 

for MT reasons, including portions of 

the 9x515 ECCNs created by this rule. 

The commenters requested that BIS 

consider ways that the EAR can be 

adjusted to prevent items that are 

transferred to the CCL from creating 

more of a licensing burden than they 

were under the ITAR. 

Response to Comment #22: BIS has 

determined that certain uses of MTcontrolled items in ‘‘spacecraft’’ meet 

the criteria for the applicability of 

license exceptions and is revising 

§ 740.2(a)(5)(i) to allow the use of 

license exceptions for certain MTcontrolled items when exported as part 

of a ‘‘spacecraft’’ or in quantities 

appropriate for replacement parts. BIS is 

also adding 7A105, for certain GPS 

systems that were previously ITAR 

controlled, and 9A515, for certain 

spacecraft, related items, radiation 

hardened microelectronic circuits and 

parts, components, accessories and 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27423 

attachments that were previously ITAR 

controlled, to the list of ECCNs that are 

eligible for the use of certain license 

exceptions for MT items. BIS is 

prohibited by statute from further 

amending licensing obligations for items 

that are MT controlled. 

Comment #23: Two commenters 

stated that License Exception STA 

should apply to all of 9D515 and 9E515. 

Response to Comment #23: BIS does 

not accept the change suggested by the 

commenter. Certain software, listed in 

9D515.b (to be effective on November 

10, 2014), .d, and .e, is excluded from 

STA eligibility based on the national 

security concerns related to the export 

of the referenced software. Similarly, 

the technology in 9E515.b (to be 

effective on November 10, 2014), .d, and 

.e is excluded from STA eligibility 

based on the national security concerns 

related to that technology. The 

commenter should nonetheless review 

the revisions to 9D515 and 9E515 that 

clarify the scope of the STA exclusions 

from the ECCNs. 

Comment #24: One commenter 

suggested that BIS allow small- and 

medium-sized companies the ability to 

quickly support new startups and 

ventures with companies in countries 

authorized as destinations in License 

Exception STA in paragraphs (c)(1) and 

(2). 

Response to Comment #24: License 

Exception STA is not authorized to 

Country Group A:6 (the countries 

authorized in paragraph (c)(2) of License 

Exception STA) for any 9x515 items. 

However, License Exception STA is 

available for exports to countries in 

Country Group A:5 (the countries 

authorized in paragraph (c)(1) of License 

Exception STA) for most of the items 

controlled in 9A515, 9D515 and 9E515, 

and all the items controlled in 9B515. 

Certain specific ‘‘spacecraft,’’ 

controlled in 9A515.a, that provide 

space-based logistics, assembly or 

servicing to another spacecraft are 

excluded from automatic eligibility for 

License Exception STA. To use License 

Exception STA for these ‘‘spacecraft,’’ 

the exporter must submit a request to 

BIS, in accordance with § 740.20(g) 

(License Exception STA eligibility 

requests for certain 9x515 and ‘‘600 

series’’ end items), for a determination 

by BIS that the item is eligible for 

License Exception STA. This rule 

revises § 740.20(g) to add the specific 

9A515.a ‘‘spacecraft’’ to the list of items 

authorized for determination under that 

paragraph and revises the heading to 

include a reference to 9x515. 

Comment #25: One commenter noted 

that the ITAR includes a license 

exemption in § 125.4(b)(7), allowing the 

return of technical data to the original 

source of import, and requested that it 

be brought to the EAR. 

Response to Comment #25: The 

exports authorized by § 125.4(b)(7) of 

the ITAR will generally be authorized 

by License Exception TMP § 740.9(b)(3) 

for items subject to the EAR. It is 

comparable in that it allows the return 

of items to the country of origin, except 

for Cuba, if the original items had not 

been enhanced. This license exception 

does not allow the dissemination of 

technology that has been revised, or in 

any way improved, while in the United 

States. Such actions create U.S.-origin 

technology, which would be subject to 

the EAR and may require a license for 

export. If the commenter can identify a 

transaction where License Exception 

TMP is more restrictive than ITAR 

§ 125.4(b)(7), then it should let BIS 

know. 

General Comments Related to ECCN 

9A515 

Comment #26: Two commenters 

requested the insertion of a note to 

9x515 that would make clear that nonU.S. origin items described in the 

ECCNs that are transferred to the United 

States would not be subject to the EAR, 

and therefore would not require a 

license in order to be re-transferred 

outside the United States. 

Response to Comment #26: BIS does 

not accept the changed suggested by the 

commenter. All items in the United 

States, not otherwise excluded from BIS 

jurisdiction, are subject to the EAR, 

whether U.S.-origin or foreign origin. 

However, License Exception TMP 

(§ 740.9(b)(3)) does allow the return of 

items to their country of origin if 

unaltered while in the U.S. In addition, 

the export from the United States of a 

wholly foreign-made item does not 

mean that subsequent reexports of that 

item are subject to the EAR. See 15 CFR 

734.3(a). 

Comment #27: One commenter noted 

that 9A515 was drafted using catch-all 

phrases similar to the unrevised USML 

Category XV and suggested that BIS 

redraft 9A515 so that it used only 

positive controls, similar to the revised 

USML Category XV. 

Response to Comment #27: BIS does 

not accept the change suggested by the 

commenter. As with the ‘‘600 series’’ 

ECCNs created to accomplish the 

rewrites of the other USML Categories, 

the 9x515 ECCNs necessarily include 

catch-all provisions to ensure continuity 

of control over all items removed from 

the USML. This is necessary because 

USML Category XV used catch-all 

phrases for its controls. Thus, the reform 

effort will result in more positive 

controls on the USML, while 

maintaining catch-all controls on the 

CCL. As described in previous Federal 

Register notices, BIS believes the 

negative aspects of catch-all controls 

have been ameliorated through the 

creation of a relatively objective 

definition of ‘‘specially designed.’’ 

Comment #28: One commenter asked 

if the new 9x515 ECCNs include only 

items that are transferred from the 

USML to the CCL, or if they also include 

items previously covered by other 

ECCNs (such as for example 9A004.b.) 

or items designated EAR99. 

Response to Comment #28: BIS’s goal 

in drafting the 9x515 ECCNs is that they 

would control no more items than that 

were either (i) formerly controlled in 

USML XV that are no longer described 

in the revised USML XV or (ii) within 

the scope of the former 9A004.b, and 

that they would not control items (i) 

within the scope of existing ‘‘spacequalified’’ ECCNs or (ii) that are star 

trackers in 7A004 and 7A104. BIS 

believes that its decision to change the 

catch-all control parameter in 9A515.x 

from ‘‘space-qualified’’ to ‘‘specially 

designed’’ removes the uncertainty that 

EAR99 items would move up to 

9A515.x through successful testing for 

use in space. BIS is unaware of any item 

that was properly determined to be 

subject to the EAR and as an EAR99 

item that would be within the scope of 

9A515.x or any other 9x515 ECCN 

paragraph. If the commenter believes 

otherwise, then he should notify BIS of 

the issue either during the interim 

period of this final rule or through the 

commodity classification process 

described in EAR § 748.3. 

Comment #29: Two commenters 

requested that BIS separate out purely 

commercial items and subject them to 

lesser controls. 

Response to Comment #29: Controls 

are based on the national security and 

foreign policy concerns associated with 

a particular item and are imposed at the 

levels that are warranted. Merely 

because something is commercial does 

not mean control is not warranted. Even 

purely commercial satellites provide a 

significant functionality that warrants 

significant control. Specifically, any 

satellite can, by virtue of its position in 

orbit above the earth, provide a platform 

with a global reach and the potential to 

carry alternative payloads that may have 

direct national security implications. 

Additionally, the technology related to 

the workings of commercial satellites 

provide the majority of the technology 

necessary to allow other countries to 

establish a space presence of significant 

concern as described in the report the 

Departments of Defense and State 


tkelley on DSK3SPTVN1PROD with RULES3
27424 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

provided to Congress in 2012 regarding 

controls on spacecraft. See Departments 

of Defense and State ‘‘Final Report,’’ 

required by section 1248 of the National 

Defense Authorization Act of Fiscal 

Year 2010, available at http://

www.defense.gov/home/features/2011/

0111_nsss/docs/1248_Report_Space_

Export_Control.pdf (the ‘‘1248 Report’’). 

Comment #30: One commenter 

requested that BIS change the reasons 

for control on 9A515 from NS1 and RS1 

to NS2 and RS2. 

Response to Comment #30: BIS 

accepts the change suggested by the 

commenter for the new microelectronic 

circuit control described in 9A515.e. 

ECCN 9A515.e has an RS2 reason for 

control because it is for lower level 

radiation tolerant microelectronic 

circuits that do not raise the same 

national security concerns and do not 

require the same global license 

requirement as other space related 

items. The remainder of 9A515, except 

the new .y paragraph, has NS1 and RS1 

reasons for control. 

Comments Related to Spacecraft in 

9A515.a 

Comment #31: Two commenters 

suggested that ‘‘spacecraft’’ controlled 

in 9A515.a should remain ‘‘subject to 

the EAR’’ even if they incorporate a 

defense article listed on the USML. 

Response to Comment #31: BIS 

accepts the change suggested by the 

commenter and has added a heading 

note at the top of the Items paragraph of 

9A515 to state that ‘‘spacecraft’’ and 

other items described in 9A515 remain 

subject to the EAR even if defense 

articles described on the USML are 

incorporated into the items, unless they 

take on the characteristics described in 

Category XV(a) of the USML. The note 

also states that in all other cases, 

defense articles described on the USML 

are subject to the ITAR. DDTC has 

added a corresponding note to its 

revised USML XV. This note in 9A515 

provides readers with a summary of the 

note on the ITAR excluding these 

integral and incorporated defense 

articles from the USML. As this 

represents a departure from the standard 

ITAR ‘‘see-through’’ rule, it is 

appropriate to call it to the reader’s 

attention. 

The 1999 NDAA mandates certain 

special export controls on the export of 

satellites and the performance of certain 

activities associated with the launch of 

a U.S.-origin satellite in a foreign 

country. The 2013 NDAA requires that 

the President provide for end-use 

monitoring of satellites and related 

items transferred from the USML to the 

CCL. As a result of the changes to 

Category XV in response to public 

comment, certain end item satellites 

may not be subject to ITAR licensing for 

the export of those satellites, including 

when exported for launch. Therefore, 

DDTC has revised § 124.15 of the ITAR, 

which implements the 1999 NDAA 

mandate, to clarify which special export 

controls apply only to satellites and 

related items subject to the ITAR and 

which controls apply to all satellites 

and related items regardless of 

jurisdiction. 

Mirroring these revisions to § 124.15 

of the ITAR, BIS created new export 

license application requirements, 

consistent with the 1999 NDAA 

mandate and implementing the 2013 

NDAA mandate, for satellites subject to 

the EAR. In Supplement No. 2 to Part 

748, BIS added a paragraph (y) to 

describe the requirement, from the 1999 

NDAA, for a Department of Defense 

approved technology control plan and a 

National Security Agency approved 

encryption control plan, or evidence of 

ongoing discussions to obtain approved 

plans, and evidence of arrangements for 

the Department of Defense to provide 

monitoring, to be provided to BIS with 

the application for an export license for 

a satellite. 

The 1999 NDAA only mandates 

special export controls for licenses to 

export a satellite to a country that is not 

a member of the North Atlantic Treaty 

Organization (NATO) or a major nonNATO ally of the United States. 

However, in furtherance of the national 

security and foreign policy interests of 

the United States, BIS has the discretion 

to require evidence of compliance with 

special export control requirements in 

connection with licenses to export 

satellites or spacecraft subject to the 

EAR to a country that is a member of 

NATO or is a major non-NATO ally. 

Accordingly, paragraph (y)(2) of 

Supplement No. 2 to Part 748 states that 

a license application to export a satellite 

controlled by ECCN 9A515.a to such 

countries must include (i) a technology 

transfer control plan approved by the 

Department of Defense and an 

encryption technology control plan 

approved by the National Security 

Agency, or documentation from the 

Department of Defense that such plans 

are not required; and (ii) evidence of 

arrangements with the Department of 

Defense for monitoring of the launch or 

documentation from the Department of 

Defense that such monitoring is not 

required. 

Regardless of a satellite’s or 

spacecraft’s jurisdictional status, 

ownership, or origin, the ITAR controls 

as a ‘‘defense service’’ the furnishing of 

assistance (including training) by a U.S. 

person to a foreign person directly 

related to (a) the integration of a satellite 

or spacecraft to a launch vehicle or (b) 

launch failure analyses. See 22 CFR 

121.1, USML XV(f). 

Comment #32: Two commenters 

suggested that BIS control sub-orbital 

spacecraft that are ‘‘reusable launch 

vehicles’’ and designed to carry humans 

on-board and any ‘‘specially designed’’ 

carrier aircraft in 9A515. The 

commenters also suggested adopting 

definitions for ‘‘suborbital rockets’’ and 

‘‘reusable launch vehicles’’ from the 

Federal Aviation Administration, 

Commercial Space Transportation 

regulations at 14 CFR 401.5. 

Response to Comment #32: BIS is 

controlling in 9A515.a all ‘‘spacecraft’’ 

no longer listed on USML XV(a). The 

revised USML Category XV(a) does not 

list ‘‘spacecraft’’ ‘‘specially designed’’ 

for human habitation that do not 

incorporate propulsion and navigation 

systems. Therefore, these items are 

controlled in 9A515.a. All launch 

platforms and launch vehicles remain 

subject to the ITAR. 

BIS recognizes that commercial 

spaceflight and specifically, sub-orbital 

commercial space flight, is a significant 

emerging industry and that these 

activities are being regulated by the 

Federal Aviation Administration as 

commercial activities. However, the 

technology that is at the heart of the 

ability to put a commercial vehicle into 

space and return to earth is often the 

same technology that would allow the 

delivery of weapons of mass destruction 

and other activities that present 

significant national security concerns. 

At this time, BIS is unable to draw a line 

between the commercial applications of 

these capacities and the inherently 

military potential of launch and reentry 

that would warrant their controls on the 

CCL. Therefore, these systems will 

remain on the USML, regardless of their 

potential commercial applications. BIS 

recognizes that the continued control of 

spacecraft with commercial applications 

on the USML is a significant issue for 

industry and that more work is required 

to further refine the controls in this area. 

The U.S. Government has committed to 

continue to review the issue and, to the 

extent further revisions to the controls 

in this rule are warranted, BIS will make 

them in coordination with the 

Department of State. 

Comment #33: One commenter stated 

that Servicing Mission Extension 

Vehicles do not appear on the USML 

but are also not listed specifically in the 

Note to 9A515.a. 

Response to Comment #33: Servicing 

Mission Extension Vehicles, to the 

extent that they incorporate a 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27425 

propulsion and guidance system, are 

listed on the revised USML Category XV 

at (a)(4) and thus are not ‘‘subject to the 

EAR.’’ Servicing Mission Extension 

Vehicles, and other ‘‘spacecraft’’ that 

provide space-based logistics, assembly 

or servicing of any spacecraft (e.g., 

refueling), which do not have integrated 

propulsion, beyond attitude control, are 

‘‘subject to the EAR’’ and controlled in 

9A515, but are not immediately eligible 

for License Exception STA. 

Comment #34: Two commenters 

suggested adding the phrase ‘‘satellites 

not otherwise enumerated in USML 

Category XV’’ to the note to 9A515.a, to 

make clear that any satellites not 

specifically listed under USML Category 

XV are covered under 9A515.a. 

Response to Comment #34: The 

suggested phrase is included in the 

control text of 9A515.a. Thus, BIS has 

determined that it is unnecessary to add 

it to the note as well. 

Comment #35: One commenter 

suggested adding the words ‘‘or 

controlled by 9A004’’ in 9A515.a after 

the phrase ‘‘not enumerated in USML 

Category XV’’ to clarify that the 

International Space Station (ISS) and 

other items controlled in 9A004 are not 

controlled in 9A515. 

Response to Comment #35: BIS 

accepts the change suggested by the 

commenter in principle and has added 

the words ‘‘or described in 9A004’’ to 

the description of items controlled in 

9A515.a. This excludes all items 

described in 9A004 from 9A515.a. As 

the ISS is not controlled in 9A515.a, the 

parts, components, accessories and 

attachments ‘‘specially designed’’ for 

the ISS are not controlled in 9A515.x. 

Comment #36: One commenter 

suggested revising the MT paragraph in 

9A515 to read: ‘‘MT applies to 9A515.d 

when also described in 3A101.a.’’ 

Response to Comment #36: BIS does 

not adopt this suggestion because 

quoting the Missile Technology Control 

Regime (MTCR) text is more precise. 

Comment #37: One commenter 

suggested defining the term ‘‘usable’’ in 

the MT paragraphs for 3A001.a.1.a and 

9A515 d. to reference a specific 

characteristic of to refer to a standard. 

Response to Comment #37: BIS 

acknowledges that the phrase ‘‘when 

usable in missiles for protecting missiles 

against nuclear effects (e.g. 

Electromagnetic Pulse (EMP), X-rays, 

combined blast and thermal effects)’’ 

can be difficult to apply in certain 

circumstances. However, this is the 

multilaterally agreed MTCR text, and 

BIS has determined that by providing a 

reference to a specific standard, the 

United States would be deviating from 

its regime commitments. If an exporter 

has particular issues warranting 

clarification, then it should submit an 

advisory opinion request under 

§ 748.3(c). 

Comments Related to 9A515.d and 

9A515.e 

Comment #38: Six commenters 

requested that items described in USML 

Category XV(d) be transitioned to 9A515 

on the date of publication of this final 

rule. 

Response to Comment #38: BIS agrees 

on the need to accelerate 

implementation of the transition of the 

radiation-hardened microelectronic 

circuits from the USML to the CCL. 

Microelectronic circuit development has 

advanced to a stage where 

manufacturers are concerned that the 

next generation of purely commercial 

microelectronic circuits may meet or 

exceed the parameters listed in USML 

Category XV(d). It is necessary to 

quickly transition these items to the 

CCL to avoid requiring that these 

commercial manufacturers register with 

DDTC and obtain ITAR licenses for the 

development of these items. In the final 

rule revising Category XV, DDTC has 

provided that the effective date for the 

deletion of USML Category XV(d), 

microelectronic circuits controlled by 

XV(e), and directly related technical 

data and software controlled by XV(f), 

will be 45 days following the 

publication of the final rule, the 

minimum period permitted for a major 

regulatory action. Therefore, BIS has 

also provided that this rule will 

transition those items to 9A515.d, 

9A515.e, 9D515.d, 9D515.e, 9E515.d, 

and 9E515.e, respectively, 45 days 

following the publication of the final 

rule, on June 27, 2014. 

Comment #39: One commenter asked 

BIS to clarify Notes 2 and 3 to 9A515.d 

to state which microelectronic circuits 

are intended to be controlled under 

3A001 as opposed to 9A515.x. 

Response to Comment #39: BIS has 

revised the controls on microelectronic 

circuits that fall below the threshold 

described in 9A515.d. BIS has created a 

new paragraph .e that controls certain 

microelectronic circuits that are 

‘‘specially designed’’ for defense articles 

controlled by USML Category XV or 

items controlled by 9A515 and meet two 

technical parameters (1) a total dose ≥1 

× 105 Rads (Si) (1 × 103 Gy(Si)) and <5 

× 105 Rads (Si) (5 × 103 Gy(Si)) and (2) 

a single event effect (SEE) (i.e., single 

event latchup (SEL), single event 

burnout (SEB), or single event gate 

rupture (SEGR)) immunity to a linear 

energy transfer (LET) ≥80 MeV-cm2/mg. 

BIS has also excluded all 

microelectronic circuits from 9A515.x. 

Therefore, microelectronic circuits that 

meet the control criteria of either 

9A515.d or 9A515.e are the only 

microelectronic circuits controlled in 

9A515. All other microelectronic 

circuits subject to the EAR will be 

controlled based on their technical 

parameters in the appropriate ECCN or 

designated as EAR99 items. 

Comment #40: One commenter asked 

that BIS insert into Note 1 of 9A515.d 

a statement adopting the longstanding 

definition of ‘‘ASIC’’ put forward by the 

JEDEC Solid State Technology 

Association—namely that an ASIC is 

‘‘an integrated circuit developed and 

produced for a specific application or 

functions and for a single customer.’’ 

Response to Comment #40: BIS 

accepts the commenter’s suggestion to 

provide a definition of ASIC or 

application specific integrated circuits. 

In Note 1 to 9A515.d and .e, BIS has 

included the phrase ‘‘integrated circuits 

developed and produced for a specific 

application or function’’ following the 

term ASIC to provide definition to the 

term. BIS does not accept the 

commenter’s suggestion that the term 

ASIC be limited to items produced for 

a single customer. Such language could 

lead to unintended drops in controls. 

Additionally, this Note 1 to 9A515.d 

and the new .e is a reference to the 

USML control in USML Category XI(c). 

Items are controlled on the USML if 

described therein, regardless of whether 

they are also within the scope of a 

particular ECCN. This note has no 

substantive effect on items that are 

controlled as ASICs on the USML. It is 

merely a cross reference inserted for the 

convenience of the exporter. 

Comment #41: One commenter noted 

that the fourth and fifth technical 

parameters contained within 9A515.d 

differ from the fourth and fifth technical 

parameters contained within the prior 

USML Category XV(d). The commenter 

asks why those changes have been 

made, and whether there is any need for 

them. The commenter suggests that the 

five technical parameters contained 

within USML Category XV(d) should be 

replicated exactly in 9A515.d. 

Response to Comment #41: The 

comment is correct that the words of the 

fourth and fifth technical parameters 

contained within 9A515.d are slightly 

different from those in prior USML 

Category XV(d). These controls have 

been updated and clarified, so BIS does 

not accept the request to revert to the 

previous controls. Anything that did not 

meet previous USML Category XV(d) 

controls will not be captured by the new 

9A515.d parameters. 

Comment #42: One commenter noted 

that some items currently listed under 


tkelley on DSK3SPTVN1PROD with RULES3
27426 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

other CCL ECCNs (e.g., 3A001) contain 

microelectronic circuits that have all of 

the specifications listed under 9A515.d. 

The commenter asks whether the 

microelectronic circuits meeting the 

described specifications that are 

currently controlled under other ECCNs 

will be moved into 9A515.d. 

Response to Comment #42: 

Microelectronic circuits are controlled 

in 9A515.d when they meet or exceed 

the five technical parameters described 

in the subparagraph and are ‘‘specially 

designed’’ for a defense article, a 600 

series item, or an item in 9A515. The 

criteria in 3A001.a are also controlled in 

9A515.d. However, 9A515.d describes a 

higher level of technical parameters 

than 3A001.a. Therefore, if a 

microelectronic circuit meets or exceeds 

the same three criteria in 9A515.d, but 

does not meet or exceed the remaining 

two 9A515.d criteria, then 3A001.a will 

apply. However, all items controlled in 

9A515.d were previously subject to the 

ITAR pursuant to USML Category 

XV(d). Therefore, nothing described in 

9A515.d could have been properly 

classified as 3A001.a. Moving forward, 

under the Order of Review (see § 774, 

Supplement No. 4), exporters must 

review the 9x515 ECCNs and ‘‘600 

series’’ prior to reviewing other ECCNs. 

Therefore, if an item is described in 

9A515.d, or the new 9A515.e, it will be 

controlled in those paragraphs, even if 

it also meets the technical parameters in 

3A001 or any other ECCN. 

Comments Related to 9A515.x 

Comment #43: One commenter 

requested that BIS not apply NS1 and 

RS1 reasons for control to 9A515.x. 

Response to Comment #43: BIS does 

not accept the change suggested by the 

commenter. The items controlled in 

9A515.x are ‘‘specially designed’’ for 

spacecraft and space applications, and 

thus raise national security and foreign 

policy concerns. Therefore, the U.S. 

Government will require visibility into 

the export of these items. Applying NS1 

and RS1 reasons for control requires 

world-wide licensing, other than 

exports to Canada. Allowing the use of 

License Exception STA for most items 

to our 36 closest allies and partners 

provides significantly more record of 

the transactions than allowing No 

License Required (NLR) shipments. 

Comment #44: Two commenters 

stated that the 9A515.x control 

parameter should be ‘‘specially 

designed.’’ 

Response to Comment #44: BIS 

accepts the change suggested by the 

commenter. BIS agrees that the use of 

the control parameter ‘‘space-qualified’’ 

in 9A515.x was potentially confusing 

and has changed it to ‘‘specially 

designed.’’ The structure of 9A515.x 

will now track the structure of all ‘‘600 

series’’ entries, in that, with small 

exceptions, it will be a catch-all control 

for all parts, components, accessories, 

and attachments ‘‘specially designed’’ 

for items in 9A515 or USML Category 

XV and not themselves controlled in 

USML Category XV. The exceptions 

pertain to (i) microelectronic circuits, 

(ii) star trackers in 7A004 and 7A104, 

and (iii) already existing multilateral 

controls on ‘‘space-qualified’’ items 

controlled elsewhere in the CCL. 

Comment #45: One commenter asked 

whether 9A515.x will capture all 

spacecraft ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ not 

controlled under paragraph (e) of USML 

Category XV or listed under other 

specific ECCNs above, or will other 

ECCNs that currently control spacecraft 

components (e.g., 7A004 or 7A104) 

continue to do so. Specifically, the 

commenter requested clarification on 

which ECCN will control the solar 

concentrators, power conditioners and/ 

or controllers, bearing and power 

transfer assemblies, deployment 

hardware/systems for solar arrays, 

‘‘space-qualified’’ star trackers and 

‘‘space-qualified’’ gyro-astro compasses 

currently controlled under Category 

XV(e). The commenter also stated that 

delineating which items are controlled 

by each of these ECCNs would help 

satellite component manufacturers 

understand which controls apply to 

their products. 

Response to Comment #45: BIS has 

clarified 9A515.x in this final rule so 

that the star trackers (except the star 

tracker specified in USML Category 

XV(e)) and gyro-astro compasses 

controlled in 7A004 and 7A104 are not 

controlled in 9A515.x. All other ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ or 

‘‘attachments’’ that are specially 

designed for items in USML Category 

XV or 9A515 are controlled in 9A515.x 

unless listed on the ITAR, identified in 

another paragraph of 9A515, are a 

microelectronic circuit, or are controlled 

in one of the ‘‘space-qualified’’ ECCNs 

that are specifically excluded. BIS is 

unaware of any items that will be 

controlled by 9A515.x that were not 

previously controlled under USML 

Category XV(e). If the commenter is 

aware of such items, then it should 

provide a comment to BIS during the 

interim period of this rule or submit a 

classification request pursuant to EAR 

section 748.3. 

Comment #46: One commenter asked 

BIS to confirm that space-related 

products that are currently designated 

with a specific ECCN or are designated 

EAR99, will not be moved to either the 

USML, 9x515, or a ‘‘600 series’’ ECCN. 

The comment requested that BIS 

include a specific statement to that 

effect, or if not true, include a 

grandfathering clause for such items 

already in inventory. 

Response to Comment #46: Other than 

with respect to 9A004.b items that BIS 

is moving to 9A515, BIS is unaware of 

any items that will be controlled by 

9A515 that were not previously 

controlled under USML Category XV. If 

the commenter is aware of such items, 

then it should provide a comment to BIS 

during the interim period of this rule or 

submit a classification request pursuant 

to EAR § 748.3. 

Comment #47: Six commenters asked 

if, when a commercial-off-the-shelf 

(COTS) or other EAR99 item is 

successfully tested for operation in 

space, it becomes space-qualified with 

repercussions for the manufacturer, 

even though the original part may have 

been EAR99 and has not been modified. 

Response to Comment #47: BIS 

believes that the other ECCNs that will 

continue to use ‘‘space-qualified’’ as the 

control parameter do not raise the same 

concerns for controlling otherwise 

EAR99 items on the basis of testing, as 

they are not catch-all controls. 

Additionally, this comment assumes 

that the qualification through testing of 

a single item will cause items other than 

the one tested to become spacequalified. As the note indicates, 

qualification through successful testing 

only applies to the actual unit tested. 

Comment #48: One commenter stated 

that BIS should exclude building block 

electronic components that would 

qualify for exclusion from specially 

designed, even if they are individually 

tested or create a new ECCN for SpaceQualified Basic Building Block 

Electrical/Electronic Components with 

AT only controls. 

Response to Comment #48: As noted 

above, BIS has revised 9A515.x in this 

final rule to use ‘‘specially designed’’ 

instead of ‘‘space-qualified’’ as the 

control parameter. To the extent that the 

item at issue is a microelectronic circuit, 

it will only be controlled in 9A515 if it 

meets the .d or .e control parameters. 

All other electronic components will be 

controlled by .x, regardless of 

significance, if ‘‘specially designed’’ for 

a 9A515 or USML Category XV item and 

not listed on the USML or one of the 

other ECCNs described in 9A515.x. The 

commenter should also review the 

procedures in EAR section 748.3(e) that 

allows one to petition BIS for removal 

of an item otherwise within the scope of 

9A515.x and the re-designation of the 

item as a 9A515.y item. 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27427 

Comment #49: One commenter 

suggested deleting 6A002.e from the list 

of ‘‘space-qualified’’ ECCN carved out of 

9A515.x. 

Response to Comment #49: BIS 

accepts the change suggested by the 

commenter. This paragraph was 

previously removed from the EAR. 

Comments Related to the Application of 

‘‘Space-Qualified’’ 

Comment #50: One commenter stated 

that the note to the proposed EAR 

definition of ‘‘space-qualified’’ 

providing that the terms ‘designed’ and 

‘manufactured’ in this definition are 

synonymous with ‘‘specially designed’’ 

is confusing. The purpose may have 

been to be sure that all ‘‘catch-all’’ 

components being removed from USML 

Category XV are covered by 9A515, but 

9A515.x use of ‘‘space-qualified,’’ rather 

than ‘‘specially designed,’’ seems to 

make the Note unnecessary for this 

purpose. 

Response to Comment #50: Although 

the comments related to the use of 

‘‘space-qualified’’ are no longer relevant 

to 9A515.x because the paragraph will 

not use ‘‘space-qualified,’’ they are 

nonetheless relevant to other uses of 

‘‘space-qualified’’ in the EAR. 

The note to the definition of ‘‘spacequalified’’ that states that the terms 

‘designed’ and ‘manufactured’ are 

synonymous with the definition of 

‘‘specially designed’’ allows exporters to 

apply the newly defined term ‘‘specially 

designed’’ rather than force exporters to 

apply two new undefined terms 

‘designed’ and ‘manufactured.’ This 

note prevents exporters from having to 

determine for themselves what, if any, 

difference exists between ‘designed’ and 

‘manufactured’ and the term ‘‘specially 

designed.’’ 

Comment #51: One commenter 

suggested to change ‘‘or’’ to ‘‘and’’ in the 

‘‘space-qualified’’ definition. The 

modified definition would read: ‘‘. . . 

an article is ‘‘space-qualified’’ if it is 

designed, manufactured, and qualified 

through successful testing, for operation 

at altitudes greater than . . .’’ Another 

commenter suggested revising the 

second note to state that ‘‘specially 

designed’’ is synonymous with the 

phrase ‘‘designed, manufactured, or 

qualified through successful testing,’’ 

which would have the same effect. 

Response to Comment #51: BIS does 

not accept these suggested changes for 

two reasons. First, this definition was 

agreed to as part of the 2012 

amendments to the Wassenaar 

Arrangement on Export Controls for 

Conventional Arms and Dual-Use Goods 

and Technologies (Wassenaar 

Arrangement), and the internationally 

agreed on language is incorporated into 

the EAR. Second, such a change would 

significantly reduce the scope of the 

space-qualified definition and result in 

less sensitive items not being controlled. 

An item may become space-qualified in 

two ways, if either (1) intentional steps 

were taken in the design and 

manufacture of the item to make it 

suitable for use in space, or (2) due to 

inconsistencies in the manufacturing 

process that cause variations in quality 

that result in only a subset of the 

production run to be suitable for use in 

space, individual items are qualified 

through testing. 

Comment #52: Two commenters 

stated that the use of ‘‘or’’ in ‘‘Designed, 

manufactured, or qualified through 

successful testing’’ seems to contradict 

the second note, which intends to 

exclude parts and components which 

have not been ‘‘specially designed.’’ 

Conversely, the first note excludes items 

that are not individually tested. As 

radiation testing is destructive, industry 

practice is to test radiation tolerance on 

lot samples and not on the actual parts 

to be used on the spacecraft. The note 

would result in excluding from being 

‘‘space-qualified,’’ parts determined to 

be radiation tolerant as a result of being 

of the same lot as samples successfully 

tested as radiation tolerant. 

Response to Comment #52: BIS does 

not accept the changes suggested by the 

commenter. The existing definition in 

the EAR is identical to the definition 

that was adopted by the Wassenaar 

Arrangement. However, Commerce will 

keep in mind these comments when 

considering future modifications, if 

necessary, to the multilateral regime 

definition. 

Comment #53: Four commenters 

asked BIS to establish parameters for 

testing that qualifies an item as ‘‘spacequalified.’’ 

Response to Comment #53: The 

concern raised by the commenters is 

largely resolved by the change in .x to 

apply ‘‘specially designed’’ instead of 

‘‘space-qualified’’ as the control 

parameter and creation of new 9A515.d 

and .e. Clarification of the use of the 

new ‘‘space-qualified’’ definition in the 

existing CCL entries should be resolved 

multilaterally as part of the WA process. 

Comment #54: One commenter 

suggested that ‘‘space-qualified’’ should 

incorporate both the catch and release of 

‘‘specially designed.’’ 

Response to Comment #54: The 

designed or manufactured prong of 

‘‘space-qualified’’ is synonymous with 

‘‘specially designed’’ per the second 

note to the definition of ‘‘spacequalified,’’ and thus includes both the 

catch and release provisions of the 

definition of ‘‘specially designed.’’ The 

qualified through successful testing 

prong of ‘‘space-qualified’’ operates 

independently of the designed or 

manufactured prong, and does not 

incorporate the ‘‘specially designed’’ 

release provisions. 

Comment #55: One commenter asked 

BIS to confirm that the ‘‘spacequalified’’ criterion applies only to 

items that have been designed, 

manufactured or qualified through 

successful testing performed at U.S. 

premises or using U.S. technologies. 

Response to Comment #55: For such 

entries, the ‘‘testing’’ element is not 

limited to testing done in the United 

States or using U.S.-origin technology. 

Other clarifications or revisions to 

‘‘space-qualified’’ will need to be part of 

the multilateral regime discussions. 

Comment #56: One commenter states 

that items should only be ‘‘spacequalified’’ if certified by the 

manufacturer. The commenter suggested 

that BIS add the following note ‘‘For 

purposes of this definition, ‘‘qualified’’ 

must be evidenced by an explicit rating 

or certification to operate at altitudes 

greater than 100 km above the Earth. 

Thus, any device certified by the 

manufacturer to be operative at altitudes 

greater than 100 km is ‘‘qualified 

through successful testing,’’ and any 

device not certified by the manufacturer 

to be operative at altitudes greater than 

100 km is not ‘‘qualified through 

successful testing,’’ regardless of any 

testing performed by any party. 

Response to Comment #56: BIS does 

not accept the change suggested by the 

commenter. The purpose of 

qualification through testing in the 

‘‘space qualified’’ definition is to control 

those items identified through testing to 

meet the requirements necessary to 

perform in space. It is not relevant what 

entity conducts the testing. 

Comment #57: One commenter asked 

whether the note to the ‘‘spacequalified’’ definition means that each 

component must be tested separately to 

be ‘‘space-qualified.’’ For example, if 

only one of four identical components is 

successfully tested and thus qualified, 

would the four identical components be 

then all ‘‘space-qualified’’ or will only 

the one successfully tested be ‘‘spacequalified’’? 

Response to Comment #57: For items 

qualified through testing, only items 

actually tested are ‘‘space-qualified.’’ If 

an item is ‘‘space-qualified’’ as a result 

of design or manufacture, testing is not 

relevant. 

Comment #58: Two commenters 

asked whether the definition of ‘‘spacequalified’’ allowed the ‘‘exclusion’’ for 

prior determination through a 


tkelley on DSK3SPTVN1PROD with RULES3
27428 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

commodity jurisdiction (CJ) 

determination or interagency-cleared 

commodity classification (CCATS) 

pursuant to § 748.3(e) in paragraph 

(b)(1) of the ‘‘specially designed’’ 

definition. If not, the commenters stated 

that a part that has been previously 

determined to be, for instance, EAR99 

through a Commodity Jurisdiction could 

see its classification become 9A915.x by 

virtue of meeting the criteria of ‘‘spacequalified,’’ i.e. qualified through 

successful testing, for operations at 

altitudes greater than 100km above the 

surface of the Earth, even though the 

design, performances, and testing flow 

of this part are the same that had been 

previously reviewed by the U.S. 

Government during the CJ or CCATS 

process. 

Response to Comment #58: As noted 

in Response to Comment #45, BIS has 

revised 9A515.x in this final rule to 

remove the ‘‘space-qualified’’ control 

parameter, replacing it with ‘‘specially 

designed.’’ 

Comment #59: Three commenters 

stated that testing should only apply to 

the item tested. 

Response to Comment #59: As stated 

in the first note to the ‘‘space-qualified’’ 

definition, only the item tested is 

qualified through testing. However, if an 

item is ‘‘space-qualified’’ as a result of 

design or manufacture, testing is not 

relevant. 

Comment #60: Items are identified as 

‘‘space-qualified’’ as a marker for high 

reliability and the level of control 

should not be increased to 9A515.x 

based on that criteria. 

Response to Comment #60: As noted 

in Response to Comment #45, BIS has 

revised 9A515.x to remove the ‘‘spacequalified’’ control parameter, replacing 

it with ‘‘specially designed.’’ 

Comment #61: One comment asked 

why the proposed rules only refer to 

categories 3, 6, and 9 in the ‘‘spacequalified’’ definition and what that 

means regarding the other categories of 

EAR. 

Response to Comment #61: The term 

‘‘space-qualified’’ only appears in 

ECCNs in categories 3, 6 and 9 of the 

Commerce Control List and the 

convention for Wassenaar Arrangement 

defined terms is to identify the 

categories in which they are used, if not 

common throughout the control list. As 

‘‘space-qualified’’ is no longer the 

control parameter in 9A515.x, category 

9 is removed from this list. 

Comment #62: One commenter 

requested that BIS clarify how 

‘‘required’’ applies to items with only a 

‘‘space qualified’’ control parameter, 

particularly when qualified through 

testing. 

Response to Comment #62: BIS has 

revised 9A515.x in this final rule to 

remove the ‘‘space-qualified’’ control 

parameter, replacing it with ‘‘specially 

designed.’’ Therefore, it is no longer 

necessary to determine how 9E515 

controls apply to items that are 

controlled as ‘‘space-qualified’’ by 

virtue of testing. 

Comments Related to 9A515.y 

Comment #63: Two commenters 

suggested that BIS create a .y paragraph 

for items that only warrant AT control, 

including certain ‘‘space-qualified’’ 

basic building block electronic 

components. 

Response to Comment #63: BIS 

accepts the suggestion to create a .y 

paragraph with an AT reason for control 

and prohibition on the export to China. 

Unlike the .y paragraphs in many of the 

‘‘600 series’’ ECCNs, 9A515.y will not 

initially be a list of items. Rather, the 

control parameter will be ‘‘[i]tems 

described in 9A515.x that have been 

identified in an interagency-cleared 

commodity classification (CCATS) 

pursuant to § 748.3(e).’’ The reason for 

control on the .y paragraph, as with the 

other .y paragraphs in the ‘‘600 series’’ 

ECCNs, is Anti-Terrorism Column 1 

(AT). Additionally, as with the other .y 

paragraphs, export to China is 

prohibited and § 744.21(a)(2) is 

amended to add a prohibition of the 

export of all items described in 9A515.y 

to China. 

At the time of publication, no items 

are designated within the .y control. BIS 

will accept requests to designate 

9A515.x items under § 784.3(e) as .y 

upon publication of this rule, but will 

not begin populating any .y controls 

until on or after the effective date of this 

rule. 

Comments Related to 9B515 

Comment #64: One commenter 

requested that BIS clarify the 

classification of encryption simulators 

used to test COMSEC encryptors when 

installed on a foreign manufactured 

satellite. 

Response to Comment #64: 

Encryptors that are ‘‘specially designed’’ 

for spacecraft will be controlled in 

9A515.x to the extent they are 

commodities or in 9D515 to the extent 

they are software. The simulators to test 

those items will not be controlled in a 

9x515 ECCN. BIS has revised 9B515.a 

and .b so that the controls on test, 

inspection and production equipment 

controlled in 9B515.a and the 

equipment, cells and stands for testing, 

analysis and fault isolation in 9B515.b 

only apply to items ‘‘specially 

designed’’ for items in 9A515.a or 

USML Category XV paragraphs (a) or (e). 

Therefore, simulators for testing a part, 

component, accessory or attachment 

controlled in 9A515.x are not controlled 

in 9B515. 

Comment #65: One commenter has 

stated that it is unclear why the (10¥4) 

Torr technical threshold has been 

included in 9B515.c. In general, the 

development of more advanced satellite 

designs has led to increases in design 

life, a feature that requires more 

demanding testing standards and more 

advanced testing equipment to validate 

these designs. It is, therefore, plausible 

that commercially available 

environmental test chambers could 

approach this threshold due to natural 

competitive pressures and the general 

interest among both satellite 

manufacturers and their customers in 

developing more reliable spacecraft. 

Unless there is a specific reason for the 

inclusion of this threshold, the 

commenter recommends that this 

control be removed. 

Response to Comment #65: BIS 

accepts the changes suggested in this 

comment, in part. The control for the 

Torr technical threshold is currently in 

1B018.b and it is deleted by this rule. 

The intent is to control chambers for 

‘‘spacecraft.’’ The chambers will only be 

controlled in 9B515.c if ‘‘specially 

designed’’ for commodities enumerated 

in 9A515.a or USML Category XV(a). 

Comments Related to 9D515 

Comment #66: One commenter 

requested the addition of a note to 

9D515 that clarifies the jurisdiction of 

software common to both USML and 

CCL satellites. The note should state 

that if software is not specially designed 

or modified for a satellite controlled 

under the USML, it is subject to the EAR 

and controlled under this ECCN. 

Response to Comment #66: BIS does 

not accept the changes suggested by the 

commenter. Software is ITAR controlled 

if it meets the definition of § 120.10 of 

the ITAR (i.e., it is ‘‘required’’ for one 

of the functions listed in 120.10) and is 

also, per USML Category XV(f), 

‘‘directly related’’ to a USML Category 

XV spacecraft or other defense article in 

USML XV. Software that is completely 

common to ITAR and EAR items would 

not meet this threshold. Thus, the 

requested note is not necessary. 

Comments Related to 9E515 

Comment #67: Ten commenters 

requested that BIS apply controls on the 

technology for the three defined terms 

‘‘development,’’ ‘‘production,’’ and 

‘‘use’’ and not apply control to 

technology on the six disjunctive 

elements of the defined term ‘‘use,’’ 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27429 

namely operation, installation, 

maintenance, repair, overhaul and 

refurbishing. Two of the commenters 

further noted that technical data and 

technical assistance required for any 

one of the disjunctive elements of use 

does not fit within the Part 772 

definition of technology as a threshold 

matter due to the use of the defined 

terms ‘‘development,’’ ‘‘production’’ 

and ‘‘use.’’ Additionally, one 

commenter noted that the expansion of 

technology controls to include 

operation, installation, maintenance, or 

repair activities in connection with 

9x515 and ‘‘600 series’’ items is in 

contradiction to the approach DDTC 

appears to be taking in revising the 

ITAR definition of defense services and 

the potential revision of the definition 

of technical data. 

Response to Comment #67: BIS 

adopted controls on elements of the 

defined term ‘‘use’’ for the ‘‘600 series’’ 

technology ECCNs, and proposed such 

controls for 9E515 to maintain 

continuity of control over the technical 

data and defense services for the items 

transitioning to the CCL that was 

controlled on the ITAR. Controls on the 

technology required for each of the 

listed disjunctive elements in each 

technology ECCN are appropriate to 

retain the necessary level of control 

consistent with the national security 

interests of the United States. 

Specifically with regard to 9E515, this 

was also done to conform to the 1248 

Report and to identify for Congress 

where all items controlled in USML 

Category XV are controlled on the CCL. 

In response to these comments, BIS, 

in consultation with other departments 

and agencies of the U.S. Government, 

has reviewed the use of various 

combinations of the disjunctive 

elements, operation, installation, 

maintenance, repair, overhaul and 

refurbishing, and determined that for 

most 9E515 technology, export controls 

on the technology for the operation and 

maintenance of those items are not 

necessary. BIS has also determined that 

all technology controls on the ground 

stations described in 9A515.b are 

unnecessary. Therefore, BIS has revised 

9E515.a to exclude technology for items 

controlled in 9A515.b, 9A515.d, 

9A515.e, and removed the words 

operation and maintenance. BIS also 

added a parenthetical following the 

word repair to make it clear that repair 

includes any on-orbit anomaly 

resolution and analysis when it goes 

beyond established procedures. 

Comment #68: Five commenters 

suggested that 9E515 be revised to 

clarify any potential overlap between 

9E515.a and 9E515.b. 

Response to Comment #68: BIS has 

reviewed and revised 9E515 to clarify 

the difference between the technologies 

controlled in each paragraph, as 

described in Response to Comment #67. 

Comment #69: Several commenters 

asked BIS and DDTC to confirm that 

various types of telemetry—i.e., 

communications to and from satellites 

and other spacecraft, whether on the 

ground, in the air, or in space—are not 

subject to the ITAR or the EAR, or, if so, 

to exclude them from the controls over 

satellite and spacecraft technology and 

technical data in USML Categories XV(f) 

and 9E515. 

Response to Comment #69: Based on 

a review of the comments and the types 

of information pertaining to satellites 

and spacecraft that warrant control, BIS 

and DDTC have determined to codify 

existing policy within the regulations 

that data transmitted to or from a 

satellite or spacecraft, whether real or 

simulated, should not be subject to the 

ITAR and should not fall within the 

scope of the EAR’s definition of 

‘‘technology,’’ if it is limited to 

information about the health, 

operational status, or function of, or raw 

sensor output from, the spacecraft, 

spacecraft payload, or its associated 

subsystems or components. Such 

information is often referred to as 

housekeeping data. In addition, the act 

of processing such telemetry data—i.e., 

converting raw data into engineering 

units or readable products—or 

encrypting it does not, in and of itself, 

cause the telemetry data to become 

subject to the ITAR or to ECCN 9E515. 

To implement this determination, DDTC 

has added a note to USML Category 

XV(f) that such information is not 

subject to the ITAR, and BIS has added 

a note to 9E515 that such information, 

to the extent it would be subject to the 

EAR, is not within the scope of 

information captured within the 

definition of ‘‘technology’’ in the EAR. 

These notes do not indicate that other 

types of technical data, as defined in 

ITAR § 120.10, directly related to USML 

Category XV items and other types of 

technology, as defined in EAR § 772.1, 

required for 9A515 items are no longer 

controlled. In addition, the notes to 

USML Category XV(f) and 9E515 do not 

change the ITAR-control status of 

classified information directly related to 

defense articles and defense services on 

the U.S. Munitions List and 600-series 

items subject to the EAR, as well as 

information covered by an invention 

secrecy order. ‘‘Classified,’’ for these 

purposes, means that which is classified 

pursuant to Executive Order 13526, 

predecessor or successor order, or to the 

corresponding classification rules of 

another government or international 

organization. 

Comment #70: One commenter 

suggested that BIS delete the quotation 

marks around the term ‘‘technology’’ in 

9E515 because these alterations would 

create a different definition for the term 

than the one that currently exists in the 

EAR. 

Response to Comment #70: BIS does 

not accept the changes suggested by the 

commenter. BIS has denominated the 

technology that is appropriate for 

control given the national security 

concerns relevant to the various items 

controlled in the 9x515 ECCNs. BIS will 

be undertaking a larger project to review 

the technology definitions and controls 

in the EAR and to harmonize, where 

appropriate, the technology controls 

with those in the ITAR. 

Comment #71: One commenter 

requested that BIS address how the 

terms installation, maintenance, repair, 

overhaul or refurbishing will apply to 

technology for items controlled in 

9A515.a, end-item spacecraft. For 

example, would data provided to 

satellite operators for post-launch 

operations (e.g., orbit-raising) meet this 

definition? The commenter noted that 

the terms installation, maintenance, 

repair, overhaul or refurbishing seem to 

apply only to the ground control 

systems controlled under 9A515.b. The 

commenter requested that BIS revise 

9E515 so that installation, maintenance, 

repair, overhaul or refurbishing 

technology are only controlled for 

ground control systems listed under 

9A515.b, ‘‘equipment’’ controlled by 

9B515, and ‘‘software’’ controlled by 

9D515. 

Response to Comment #71: As 

detailed in Response to Comment #69, 

BIS has revised 9E515.a so that it now 

controls technology ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

installation, repair (including on-orbit 

anomaly resolution and analysis beyond 

established procedures), overhaul or 

refurbishing of commodities controlled 

by 9A515 (except 9A515.d. or .e), 

9B515, or ‘‘software’’ controlled by 

9D515.a. 9E515.b now controls 

technology ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ e.g., 

failure analysis and anomaly resolution 

of software controlled by 9D515.b. One 

of the revisions to 9E515.a also makes 

clear that the control of repair 

technology includes on-orbit anomaly 

resolution and analysis, beyond 

established procedures. However, 

standard post-launch operations (e.g., 

orbit-raising), orbit maintenance and 

other movement of the spacecraft onorbit do not fall within the controlled 

technology. If an exporter has any 


tkelley on DSK3SPTVN1PROD with RULES3
27430 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

question whether certain specific 

information is technology for an item in 

9A515.a, BIS recommends that the 

exporter submit a classification request 

to BIS and this will be a fact-based 

inquiry. 

Comment #72: One commenter 

suggested that export licensing 

requirements should only focus on the 

export of hardware, such as amateur 

radio satellite subsystems or complete 

amateur radio satellites, and not on 

technology related to that hardware. 

Response to Comment #72: BIS does 

not accept the change suggested by the 

commenter. Technology for 

commodities and software is often just 

as significant, and is sometimes even 

more significant, than the commodities 

derived from the technology. Teaching 

other countries how to design, develop 

or produce these items imparts the 

capacity to create the items 

domestically. Therefore, BIS continues 

to maintain controls on technology. 

However, BIS has reviewed 9E515 and, 

as discussed in Response to Comment 

#69, has excluded controls on operation 

and maintenance technology for most 

items and expanded the scope of 

technology eligible for License 

Exception STA. 

Comment #73: One commenter stated 

that this rule should do more to 

unburden university research and 

teaching regarding space technology. 

Response to Comment #73: BIS 

understands that compliance with 

export controls in the university context 

can be complex and appreciates all the 

efforts by colleges and universities to 

vigilantly maintain compliance with the 

EAR and the ITAR. Although export 

controls are required on the basis of 

national security concerns arising from 

the potential proliferation of these 

items, BIS notes that classroom 

instruction is often not subject to the 

EAR. See § 734.9 of the EAR. 

Comment #74: Four commenters 

stated that BIS should not attach license 

conditions to technology transfer 

licenses that are similar to the current 

DDTC TAA provisos. 

Response to Comment #74: Licensing 

decisions and the license conditions 

attached to specific licenses are driven 

by the national security implications of 

the specific transaction under 

consideration. Specific license 

conditions are not set out in the 

regulations and, therefore, discussion of 

the appropriateness in any situation of 

any individual license condition is not 

germane to this regulatory revision. 

Comment #75: Three commenters 

requested that BIS exclude controls on 

operation technology, because it is 

already exempt from the ITAR under 

§ 125.4(b)(5). 

Response to Comment #75: BIS has 

revised 9E515.a so that it no longer 

includes controls on technology merely 

for operation. 

Comment #76: One commenter 

requested that, in the event that BIS 

decides that ‘‘operation’’ data should be 

controlled under 9E515.a, an exception 

for basic operations, maintenance, and 

training information similar to the one 

provided by § 125.4(b)(5) of the ITAR 

should be added in a note to the 

paragraph. 

Response to Comment #76: BIS has 

revised 9E515 and .a no longer includes 

controls on technology for operation. 

However, when the EAR do control 

operation technology, License Exception 

TSU (§ 740.13) provides comparable 

authority for the export of operation and 

other basic technology with a legally 

exported item. 

Comment #77: One commenter 

suggested that there is an overlap 

between the controls on technology for 

production, which includes the 

integration stage, and technology for 

installation and asked if ‘‘installation’’ 

in this ECCN has the same definition as 

in the definition of ‘‘defense service’’ 

proposed in the companion proposed 

DDTC rule. 

Response to Comment #77: BIS 

recognizes that there is some conceptual 

overlap between the integration stage 

controlled as production technology and 

installation technology. There is also 

conceptual overlap between various 

stages of development and production 

technology and certain technology 

involved in the repair, overhaul, or 

refurbishing or items. At this time, all 

controlled technology for 9x515 items 

has the same level of control, so 

whether a particular piece of 

information is required for production 

or only for installation is academic. As 

noted above, BIS intends to engage in a 

review of technology controls and to 

coordinate with DDTC to harmonize 

technology controls between the EAR 

and the ITAR. 

Comment #78: Three commenters 

suggested that development and 

production technology should be in 

9E515.a. 

Response to Comment #78: BIS 

accepts the change suggested by the 

commenters, except for development 

and production technology for 

radiation-hardened microelectronic 

circuits controlled in 9A515.d or 

9A515.e. Due to the sensitive nature of 

radiation hardening technology, it was 

necessary to continue to exclude all 

technology related to the radiation 

hardened and radiation tolerant 

microelectronic circuits in 9A515.d and 

.e from STA eligibility, including the 

technology for the development or 

production of these items. 

Comment #79: Three commenters 

requested that controls on technology 

for the design verification, quality 

control and manufacturability be moved 

to 9E515.a, and not be subject to 

licensing in the same way as production 

and development technology. 

Response to Comment #79: BIS has 

revised 9E515 to no longer use the terms 

design verification, quality control and 

manufacturability. These were 

undefined terms which may have 

caused confusion and which became 

unnecessary once 9E515 was revised. 

Comment #80: Two commenters 

suggested that BIS develop a definition 

for manufacturability to distinguish it 

from development and production 

technology, exclude it from the controls 

on development and production 

technology in 9A515.a, and retain the 

control in 9E515.b. 

Response to Comment #80: BIS has 

revised 9E515 so that it no longer uses 

the term ‘‘manufacturability’’ to avoid 

any confusion. 

Comment #81: Two commenters 

suggested that BIS clarify its definition 

of ‘‘build-to-print’’ technology and some 

of the elements in Proposed 9E515.b, 

with which it appears to conflict. 

Response to Comment #81: BIS has 

revised 9E515 so that it no longer uses 

the term build-to-print to enhance 

clarity and avoid any confusion. 

Comment #82: One commenter 

suggested that BIS create a 9E515.y 

paragraph to control low-level 

technology. 

Response to Comment #82: As 

discussed above in response to 

comment #63, BIS did accept a 

comment to create a 9A515.y paragraph 

for items that are ‘‘specially designed’’ 

for items in 9A515 or USML Category 

XV that the U.S. Government 

determines do not warrant control in 

9A515.x. As also discussed above, BIS 

will continue to review technology 

controlled by 9E515 to determine 

whether lower levels of controls on 

some types of space-related technologies 

are warranted. 

Comment #83: Five commenters 

expressed support for keeping the 

passenger and participant spaceflight 

experience EAR99. 

Response to Comment #83: BIS agrees 

that export controls on the passenger 

and participant spaceflight experience 

are not necessary and has revised the 

note to 9E515, now Note 2 to 9E515, to 

clarify the scope of the technology 

related to the passenger and participant 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27431 

spaceflight experience, which is not 

subject to the ITAR or the EAR. 

Comments Related to the International 

Space Station (ISS) 

Comment #84: One commenter 

suggested that BIS delete the Related 

Control Note 6 in 9A004 and move ISS 

technology from the USML to 9E001 

and 9E002. 

Response to Comment #84: BIS 

accepts the change suggested by the 

commenter and revises all of the Related 

Control Notes to 9A004 and the text of 

the List of Items Controlled paragraph. 

The USML has been revised to exclude 

the ISS and all specially designed parts 

and components therefor. See USML 

Category XV, note to paragraph (a)(12). 

Therefore, the ISS will remain 

controlled in 9A004.a and the parts, 

components, accessories and 

attachments ‘‘specially designed’’ for 

the ISS will be controlled in a new 

9A004.x. The result of this exclusion on 

the ITAR is also to remove the 

technology directly related to the ISS 

and its specially designed parts and 

components from the USML to the CCL. 

The technology controls for 9A004 are 

9E001 for development technology and 

9E002 for production technology. 

Comment #85: One commenter 

suggested that BIS revise 9A004 Related 

Controls (4) by deleting ‘‘and related 

articles’’ and ‘‘and 9B515.’’ 

Response to Comment #85: As 

discussed above in the response to 

comment #84, BIS has revised all of the 

Related Control paragraphs in 9A004, 

and this comment is no longer relevant. 

Comments Related to Other ECCNs 

Comment #86: One commenter asked 

if BIS intends to remove the related 

controls 3 and 4 from 3A001. 

Response to Comment #86: BIS did 

not propose any changes to related 

controls 3 and 4 in 3A001 and does not 

make any changes in this rule. 

Comment #87: One commenter 

suggested that BIS edit several ECCNs 

paragraphs in 3A001, 3A002, 3A101, 

3D001, 3D101, 3E001, 5A001, 6A002, 

7A004, 7A104, 9A004 and 9A116 to 

identify potential overlaps with the 

USML or 9A515 and remove references 

to the USML or 9A515 from the related 

control paragraphs in those ECCNs. 

Response to Comment #87: BIS does 

not accept the changes suggested by the 

commenter. BIS uses the convention of 

identifying related controls, including 

potentially overlapping controls, in the 

related controls paragraph and not in 

each ECCN paragraph. The order of 

review directs parties classifying an 

item to review USML before reviewing 

the CCL and to review the 9x515 ECCNs 

before reviewing any other ECCNs. 

Therefore, when the USML describes an 

item, it is controlled on the USML, and 

when 9A515 describes an item, it is 

controlled in 9A515, even if also 

described in another ECCN. 

Comment #88: One commenter 

suggested that BIS revise the MT reason 

for control paragraph in 3A001 and 

9A515. 

Response to Comment #88: BIS does 

not accept the change suggested by the 

commenter. Quoting the MTCR text is 

more precise. 

Comment #89: One commenter 

suggested that BIS revise the List of 

Items Controlled paragraph in 3A001 

and the heading to 3D101. 

Response to Comment #89: BIS does 

not accept the change suggested by the 

commenter because it is outside the 

scope of the May 24 (spacecraft) rule. 

Comment #90: One commenter 

suggested that BIS revised 6A002 by 

deleting Related Control paragraph (1). 

Response to Comment #90: BIS does 

not accept the change suggested by the 

commenter. In addition to controls in 

USML Category XV on certain ‘‘spacequalified’’ optics, many of the image 

intensifiers and focal plane arrays 

described in Related Control paragraph 

(1) are controlled in USML Category XII 

and will be addressed when that 

paragraph is revised. Additionally, 

items that are ‘‘specially designed’’ for 

military use will be controlled on the 

USML or in the ‘‘600 series’’ in most 

circumstances. 

Comment #91: One commenter 

suggested that BIS delete Related 

Controls (2) in 6A004. 

Response to Comment #91: BIS 

acknowledges the commenter’s support 

for this proposed revision, which 

appeared in the May 24 (spacecraft) 

rule, and has implemented the change 

in this final rule. 

Comment #92: One commenter 

suggested that BIS revise 7A005 by 

deleting the License Requirements 

reference that these items are subject to 

DDTC export licensing authority, and 

revising the related controls paragraph. 

Response to Comment #92: BIS does 

not accept the suggested change by the 

commenter because it is outside the 

scope of the May 24 (spacecraft) rule. 

Major revisions to the controls on GPS 

will be addressed in the revisions of 

USML Category XII and the companion 

EAR ‘‘600 series’’ ECCNs. Additionally, 

this ECCN is currently subject to the 

ITAR and is licensed for export by 

DDTC. 

Comment #93: One commenter 

suggested that BIS revise 7A105 to read: 

‘‘Receiving equipment for Global 

Navigation Satellite Systems (GNSS) 

(e.g., GPS, GLONASS or Galileo), 

designed or modified for airborne 

applications and capable of providing 

navigation information at speeds in 

excess of 600 m/s (1,165 nautical miles/ 

hour). MT applies to entire entry. MT 

Column 1. Related Controls: See also 

USML Category XV(c) and 7A005.’’ (To 

conform with MTCR 11.A.3.b.1). 

Response to Comment #93: BIS 

accepts the changes suggested by the 

commenter. Although revisions to 

USML controls on GPS items will be 

addressed in revisions of USML 

Category XII, the revised USML 

Category XV has removed paragraph 

XV(c)(2). The GPS described in that 

paragraph therefore moves to the CCL. 

Because 7A105 describes the MTCR 

control on that type of GPS and GPS is 

not specifically related to spacecraft, it 

will be controlled in 7A105 and not 

within 9A515. The text of 7A105 is 

revised to match the current MTCR text, 

as accurately described in the comment 

and to add control for ‘‘specially 

designed’’ parts and components as 

well. The reasons for control will be 

Missile Technology (MT) and AntiTerrorism (AT) and a license will be 

required for all destinations other than 

Canada. 

Export Administration Act 

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 8, 

2013, 78, 2013, 78 FR 49107 (August 12, 

2013), has continued the Export 

Administration Regulations in effect 

under the International Emergency 

Economic Powers Act. BIS continues to 

carry out the provisions of the Export 

Administration Act, as appropriate and 

to the extent permitted by law, pursuant 

to Executive Order 13222 as amended 

by Executive Order 13637. 

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 


tkelley on DSK3SPTVN1PROD with RULES3
27432 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

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 rule affects 

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 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 included in this rule, such 

‘‘parts’’ and ‘‘components’’ would 

become eligible for export to countries 

that are 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 

9E515 are likely to be less complex and 

burdensome than the authorizations 

required to export ITAR-controlled 

‘‘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 rule will not have a 

significant impact on a substantial 

number of small entities. A summary of 

the factual basis for this certification 

follows. 

5. To the extent that any changes to 

the EAR made by this rulemaking are 

outside the scope of the logical 

outgrowth of the changes proposed in 

the May 24 (spacecraft) rule and the 

public comments received on that rule, 

the provisions of the Administrative 

Procedure Act (5 U.S.C. 553) requiring 

notice of proposed rulemaking and the 

opportunity for public comment are 

waived for good cause as it is contrary 

to the public interest. (5 U.S.C. 

553(b)(B)). BIS implements the new 

provisions in section paragraph (y) in 

Supplement No. 2 to Part 748 in this 

rule to protect U.S. national security or 

foreign policy interests by preventing 

the unauthorized export of satellites and 

unauthorized release of technology 

related to satellites and launch vehicles. 

Executive Order 13222 as amended by 

Executive Order 13637, promulgated, in 

part, pursuant to § 203 of the 

International Emergency Economic 

Powers Act (50 U.S.C. 1702), declares 

the unrestricted access of foreign parties 

to U.S. goods and technology to 

constitute an unusual and extraordinary 

threat to the national security, foreign 

policy, and economy of the United 

States and declares a national 

emergency with respect to that threat 

BIS continues to carry out the 

provisions of the Export Administration 

Act pursuant to this emergency 

authority. Additionally, the Congress of 

the United States has declared that it is 

in the national security interests of the 

United States that satellites be subject to 

the same export controls that apply to 

munitions. (Section 1511(5) of the 1999 

NDAA). Further, Congress has 

conditioned the removal of satellites 

from the USML on a determination that 

the removal of such satellites is in the 

national security interests of the United 

States. (Section 1261(b)(1) of the 2013 

NDAA). The provisions in paragraph (y) 

in Supplement No. 2 to Part 748 are 

implemented to prevent the export of 

technology related to satellite launches 

by unauthorized persons. Without this 

provision, BIS would lack sufficient 

information to ensure that the exporter 

has complied with the statutory 

requirements for the foreign launch of 

U.S.-origin satellites and related 

technology that could be released in a 

manner that is inconsistent with the 

U.S. national interest. If BIS cannot 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27433 

confirm that the required approvals 

from DOD and NSA and that the 

appropriate monitoring has been 

arranged, BIS will not be able to ensure 

that U.S. national security concerns are 

appropriately addressed in relation to 

the export. For this reason, BIS finds 

good cause to waive prior notice and 

opportunity for public comment. 

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 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 9x515 ECCNs. In practice, the 

greatest impact of this rule on small 

entities would likely be reduced 

administrative costs and reduced delay 

for exports of items that are now on the 

USML but would become subject to the 

EAR. 

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 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 multiregime 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 of 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 


tkelley on DSK3SPTVN1PROD with RULES3
27434 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

the USML to the CCL, except for items 

destined to embargoed destinations in 

Country Group D:5. 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 

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. 

BIS did not receive any comments 

regarding the economic impacts of this 

rule. As a result, a final regulatory 

flexibility analysis was not required and 

one was not prepared. 

List of Subjects 

15 CFR Parts 732, 734, 740, 744, 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) are amended as follows: 

PART 732—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 732 continues to read as follows: 

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

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

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

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

of August 8, 2013, 78 FR 49107 (August 12, 

2013). 

■ 2. Supplement No. 3 to part 732 is 

amended by revising paragraphs (b)13. 

and (b)14. to read as follows: 

SUPPLEMENT NO. 3 TO PART 732— 

BIS’S ‘‘KNOW YOUR CUSTOMER’’ 

GUIDANCE AND RED FLAGS 

* * * * * 

(b) * * * 

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

‘‘components’’ for an end item in 9x515 or 

the ‘‘600 series.’’ The requested ‘‘parts’’ or 

‘‘components’’ may be eligible for License 

Exception STA, another authorization, or 

may not require a destination-based license 

requirement for the country in question. 

However, the requested ‘‘parts’’ or 

‘‘components’’ would be sufficient to service 

one hundred of the 9x515 or ‘‘600 series’’ end 

items, but you ‘‘know’’ the country does not 

have those types of end items or only has two 

of those end items. 

14. The customer indicates or the facts 

pertaining to the proposed export suggest 

that a 9x515 or ‘‘600 series’’ item may be 

reexported to a destination listed in Country 

Group D:5 (see Supplement No. 1 to part 740 

of the EAR). 

PART 734—[AMENDED] 

■ 3. 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; E.O. 13637 of March 8, 2013, 

78 FR 16129 (March 13, 2013); Notice of 

August 8, 2013, 78 FR 49107 (August 12, 

2013); Notice of November 7, 2013, 78 FR 

67289 (November 12, 2013). 

■ 4. Section 734.4 is amended by 

revising paragraph (a)(6) to read as 

follows: 

§ 734.4 De minimis U.S. content. 

(a) * * * 

(6) ‘‘600 series.’’ 

(i) There is no de minimis level for foreignmade items that incorporate U.S.-origin 

9x515 or ‘‘600 series’’ items enumerated or 

otherwise described in paragraphs .a through 

.x of a 9x515 or ‘‘600 series’’ ECCN when 

destined for a country listed in Country 

Group D:5 of Supplement No. 1 to part 740 

of the EAR. 

(ii) There is no de minimis level for 

foreign-made items that incorporate U.S.- 

origin 9x515 or ‘‘600 series’’ .y items when 

destined for a country listed in Country 

Group E:1 of Supplement No. 1 to part 740 

of the EAR or for the People’s Republic of 

China (PRC). 

* * * * * 

PART 736—[AMENDED] 

■ 5. 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 7, 2013, 78 FR 27301 

(May 9, 2013); Notice of August 8, 2013, 78 

FR 49107 (August 12, 2013); Notice of 

November 7, 2013, 78 FR 67289 (November 

12, 2013). 

■ 6. Section 736.2 is amended by 

revising paragraphs (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 9x515 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 ‘‘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). 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 9x515 item 

subject to the scope of this General 

Prohibition Three to a destination in 

Country Groups D:5 or E:1 (see 

Supplement No. 1 to part 740 of the 

EAR). 

(iv) Product scope of 9x515 and ‘‘600 

series’’ items subject to this prohibition. 

This General Prohibition Three applies 

if a 9x515 or ‘‘600 series’’ item meets 

either of the following conditions: 

(A) Conditions defining direct product 

of ‘‘technology’’ or ‘‘software’’ for 9x515 

and ‘‘600 series’’ items. Foreign-made 

9x515 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 9x515 or ‘‘600 series’’ as designated 

on the applicable ECCN of the 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27435 

Commerce Control List in Supplement 

No. 1 to part 774 of the EAR; and 

(2) They are in the 9x515 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 9x515 and ‘‘600 series’’ 

items. Foreign-made 9x515 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 9x515 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 9x515 or ‘‘600 series’’ as designated 

on the applicable ECCN of the 

Commerce Control List in part 774 of 

the EAR. 

(v) 9x515 and ‘‘600 series’’ foreignproduced 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] 

■ 7. 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 8, 2013, 78 

FR 49107 (August 12, 2013). 

■ 8. Section 740.2 is amended by 

revising paragraph (a)(5)(i), removing 

and reserving paragraph (a)(7), revising 

paragraphs (a)(12) introductory text and 

(a)(12)(i), and adding paragraph (a)(18), 

effective July 1, 2014, to read as follows: 

§ 740.2 Restrictions on all license 

exceptions. 

(a) * * * 

(5) * * * 

(i) The item is controlled for missile 

technology (MT) reasons, except that the 

items described in ECCNs 6A008, 

7A001, 7A002, 7A004, 7A101, 7A102, 

7A103, 7A104, 7A105, 7B001, 7D001, 

7D002, 7D003, 7D101, 7D102, 7E003, 

7E101 or 9A515, may be exported as 

part of a spacecraft, manned aircraft, 

land vehicle or marine vehicle or in 

quantities appropriate for replacement 

parts for such applications under 

§ 740.9(a)(4) (License Exception TMP for 

kits consisting of replacement parts), 

§ 740.10 (License Exception RPL), 

§ 740.13 (License Exception TSU), or 

§ 740.15(b) (License Exception AVS for 

equipment and spare parts for 

permanent use on a vessel or aircraft). 

* * * * * 

(7) [RESERVED] 

* * * * * 

(12) The item is described in a 9x515 

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: 

(i) 9x515 or ‘‘600 series’’ items 

destined to, or in, Country Group D:5 

are eligible for License Exception GOV 

(§ 740.11(b)(2) of the EAR); and 

* * * * * 

(18) 9x515 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). 

* * * * * 

■ 9. Section 740.9 is amended by 

revising the last sentence of paragraph 

(a) introductory text to read as follows: 

§ 740.9 Temporary imports, exports, 

reexports, and transfers (in-country) (TMP). 

(a) * * * The references to various 

countries and country groups in these TMPspecific 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 9x515 or ‘‘600 series’’ items to 

destinations in Country Group D:5. 

* * * * * 

■ 10. Section 740.10 is amended by 

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

(b)(1), and (b)(3)(i)(F) to read as follows: 

§ 740.10 License Exception Servicing and 

replacement of parts and equipment (RPL). 

* * * * * 

(a) * * * 

(3) * * * 

(viii) ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ classified 

in 9x515 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 9x515 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) * * * 

(1) Scope. The provisions of this paragraph 

(b) authorize the export and reexport to any 

destination, except for 9x515 or ‘‘600 series’’ 

items to destinations identified in Country 

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

or otherwise prohibited under the EAR, of 

commodities and software that were returned 

to the United States for servicing and the 

replacement of defective or unacceptable 

U.S.-origin commodities and software. 

* * * * * 

(3) * * * 

(i) * * * 

(F) Commodities or ‘‘software’’ ‘‘subject to 

the EAR’’ and classified in 9x515 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). 

* * * * * 

■ 11. Section 740.15 is amended by 

revising the heading and the 

introductory text, and adding paragraph 

(e), to read as follows: 

§ 740.15 Aircraft, vessels and spacecraft 

(AVS). 

This License Exception authorizes 

departure from the United States of foreign 

registry civil aircraft on temporary sojourn in 

the United States and of U.S. civil aircraft for 

temporary sojourn abroad; the export of 

equipment and spare parts for permanent use 

on a vessel or aircraft; exports to vessels or 

planes of U.S. or Canadian registry and U.S. 

or Canadian Airlines’ installations or agents; 

and the export of spacecraft and components 

for fundamental research. Generally, no 

License Exception symbol is necessary for 

export clearance purposes; however, when 

necessary, the symbol ‘‘AVS’’ may be used. 

* * * * * 

(e) Spacecraft for launch. This paragraph 

(e) authorizes the export by accredited U.S. 

institutions of higher learning of 

commodities subject to the EAR fabricated 

only for fundamental research purposes 

when all of the following conditions are met: 

(1) The export is to an accredited 

institution of higher learning, a governmental 

research center, or an established government 

funded private research center located in a 

country other than Country Group D:5 (see 

Supp. No. 1 to this part) and involves 

exclusively nationals of such countries; 

(2) All the information about the 

commodity, including its design, and all of 

the resulting information obtained through 

fundamental research involving the 

commodity will be published and shared 

broadly within the scientific community, and 

is not restricted for proprietary reasons or 

specific U.S. government access and 

dissemination controls or other restrictions 

accepted by the institution or its researchers 

on publication of scientific and technical 

information resulting from the project or 

activity (see § 734.11 of the EAR); and 

(3) If the commodity is for permanent 

export, the platform or system into which the 


tkelley on DSK3SPTVN1PROD with RULES3
27436 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

commodity will be incorporated must be a 

scientific, research, or experimental satellite 

and must be exclusively concerned with 

fundamental research and may only be 

launched into space from countries and by 

nationals of countries not identified in 

Country Group D:5. 

* * * * * 

■ 12. Section 740.20 is amended by 

adding a new sentence to the end of 

paragraph (d)(2) introductory text and 

revising the heading of paragraph (g) 

and paragraph (g)(1) to read as follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

* * * * * 

(d) * * * 

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

for transactions including 9x515 items. 

* * * * * 

(g) License Exception STA eligibility 

requests for 9x515 and ‘‘600 series’’ end 

items. (1) Applicability. Any person may 

request License Exception STA eligibility for 

end items described in ECCN 0A606.a, ECCN 

8A609.a, ECCN 8A620.a or .b, or ECCN 

9A610.a or spacecraft described in 9A515.a 

that provide space-based logistics, assembly 

or servicing of any spacecraft (e.g., refueling). 

PART 742—[AMENDED] 

■ 13. 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 8, 2013, 78 FR 

49107 (August 12, 2013); Notice of November 

7, 2013, 78 FR 67289 (November 12, 2013). 

■ 14. Section 742.4 is amended by 

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

a new 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 9x515 or ‘‘600 series’’ ECCNs 

will be reviewed consistent with United 

States arms embargo policies in § 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 9x515 ECCN will be subject to a policy 

of denial. 

* * * * * 

■ 15. Section 742.6 is amended by 

revising the first and fourth sentence 

and adding a new sentence to the end 

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

§ 742.6 Regional stability. 

* * * * * 

(b) Licensing policy. (1) Applications for 

exports and reexports of 9x515 and ‘‘600 

series’’ items will be reviewed on a case-bycase 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 

9x515 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 in 

§ 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 9x515 ECCN will be subject to a policy 

of denial. 

* * * * * 

PART 744—[AMENDED] 

■ 16. The authority citation for 15 CFR 

part 744 continues to read as follows: 

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

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

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

U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 

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

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

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

12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 

356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 

Comp., p. 228; E.O. 13099, 63 FR 45167, 3 

CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 

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

13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 

786; Notice of January 17, 2013, 78 FR 4303 

(January 22, 2013) Notice of August 8, 2013, 

78 FR 49107 (August 12, 2013); Notice of 

September 18, 2013, 78 FR 58151 (September 

20, 2013); Notice of November 7, 2013, 78 FR 

67289 (November 12, 2013). 

■ 17. Section 744.21 is amended by 

revising paragraph (a)(2) to read as 

follows: 

§ 744.21 Restrictions on certain military 

end-uses in the People’s Republic of China 

(PRC). 

(a) * * * 

(2) General prohibition. In addition to the 

license requirements for 9x515 and ‘‘600 

series’’ items specified on the Commerce 

Control List (CCL), you may not export, 

reexport, or transfer (in-country) any 9x515 

or ‘‘600 series’’ item, including items 

described in a .y paragraph of a 9x515 or 

‘‘600 series’’ ECCN, to the PRC without a 

license. 

* * * * * 

PART 748—[AMENDED] 

■ 18. 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 8, 2013, 78 FR 49107 (August 12, 

2013). 

■ 19. Section 748.8 is amended by 

revising paragraph (x) and adding 

paragraph (y) to read as follows: 

§ 748.8 Unique application and 

submission requirements. 

* * * * * 

(x) License application for a transaction 

involving a 9x515 and ‘‘600 series’’ item that 

is equivalent to a transaction previously 

approved under an ITAR license or other 

approval. 

(y) Satellite exports. 

■ 20. Supplement No. 1 to part 748 is 

amended by revising the first and fifth 

sentences of the final paragraph 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 9x515 or ‘‘600 series’’ 

item that is equivalent to a transaction 

previously approved under an ITAR license 

or other approval. 

* * * The classification of the 9x515 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. 

* * * * * 

■ 21. Supplement No. 2 to part 748 is 

amended by revising paragraph (x) and 

adding paragraph (y) to read as follows: 

Supplement No. 2 to Part 748—Unique 

Application and Submission 

Requirements 

* * * * * 

(x) License application for a transaction 

involving a 9x515 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 9x515 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). 

* * * * * 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27437 

(y) Satellite exports. (1) A license 

application to export a satellite controlled by 

ECCN 9A515.a to a country that is not a 

member of the North Atlantic Treaty 

Organization (NATO) or a major non-NATO 

ally of the United States (as defined in 22 

C.F.R. sections 120.31 and 120.32), must 

include: 

(i) A technology transfer control plan 

approved by the Department of Defense and 

an encryption technology control plan 

approved by the National Security Agency, or 

drafts reflecting advance discussions with the 

departments and information identifying the 

U.S. Government officials familiar with the 

preparation of such draft plans; and 

(ii) Evidence of arrangements with the 

Department of Defense for monitoring of the 

launch activities. 

(2) A license application to export a 

satellite controlled by ECCN 9A515.a to a 

country that is a member of the North 

Atlantic Treaty Organization (NATO) or that 

is a major non-NATO ally of the United 

States (as defined in 22 C.F.R. sections 

120.31 and 120.32), must include: 

(i) A technology transfer control plan 

approved by the Department of Defense and 

an encryption technology control plan 

approved by the National Security Agency, or 

documentation from the Department of 

Defense that such plans are not required; and 

(ii) Evidence of arrangements with the 

Department of Defense for monitoring of the 

launch or documentation from the 

Department of Defense that such monitoring 

is not required. 

Note 1 to Paragraph (y): Regardless of a 

satellite’s or spacecraft’s jurisdictional status, 

ownership, or origin, the ITAR controls as a 

‘‘defense service’’ the furnishing of assistance 

(including training) by a U.S. person to a 

foreign person directly related to (a) the 

integration of a satellite or spacecraft to a 

launch vehicle or (b) launch failure analyses. 

See (See 22 CFR 121, Categories IV(i) and 

XV(f), and 22 CFR 124.15). 

PART 758—[AMENDED] 

■ 22. 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 

8, 2013, 78 FR 49107 (August 12, 2013). 

■ 23. Section 758.1 is amended by 

revising paragraph (b)(3) to read as 

follows: 

§ 758.1 The Electronic Export Information 

(EEI) filing to the Automated Export System 

(AES). 

* * * * * 

(b) * * * 

(3) For all exports of 9x515 or ‘‘600 series’’ 

items enumerated in paragraphs .a through .x 

of a 9x515 or ‘‘600 series’’ ECCN regardless 

of value or destination, including exports to 

Canada; 

* * * * * 

■ 24. Section 758.2 is amended by 

revising paragraph (b)(4) to read as 

follows: 

§ 758.2 Automated Export System (AES). 

* * * * * 

(b) * * * 

(4) Exports are made under License 

Exception Strategic Trade Authorization 

(STA); are made under Authorization 

Validated End User (VEU); or are of 

9x515 or ‘‘600 series’’ items. 

■ 25. Section 758.6 is amended by 

revising paragraph (b) to read as follows: 

§ 758.6 Destination control statement and 

other information furnished to consignees. 

* * * * * 

(b) Additional Requirement for 9x515 and 

‘‘600 series’’ items. In addition to the 

destination control statement required in 

paragraph (a), the ECCN for each 9x515 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. 

PART 772—[AMENDED] 

■ 26. 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 

8, 2013, 78 FR 49107 (August 12, 2013). 

■ 27. Section 772.1 is amended by 

revising the definition for the term 

‘‘space-qualified’’ to read as follows: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

* * * * * 

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

manufactured, or qualified through 

successful testing, for operation at altitudes 

greater than 100 km above the surface of the 

Earth. 

Note 1: 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 ‘‘spacequalified’’ if not individually tested. 

Note 2: 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] 

■ 28. 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 8, 2013, 78 

FR 49107 (August 12, 2013). 

Supplement No. 1 to Part 774— 

[Amended] 

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

Category 1, remove and reserve 

paragraph .b in the Items paragraph of 

the List of Items Controlled of Export 

Control Classification Number (ECCN) 

1B018, effective November 10, 2014. 

■ 30. 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, 

effective November 10, 2014, to read as 

follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

3A001 Electronic ‘‘components’’ and 

‘‘specially designed’’ ‘‘components’’ 

therefor, as follows (see List of Items 

Controlled). 

License Requirements 

* * * * * 

Controls(s) 

Country chart 

(See Supp. No. 1 to 

part 738) 

* * * * * 

MT applies to 

3A001.a.1.a for 

‘microcircuits’ ‘‘usable in’’ ‘‘missiles’’ 

for protecting ‘‘missiles’’ against nuclear effects (e.g. 

Electromagnetic 

Pulse (EMP), Xrays, 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 and Category XI of the USML 

for certain ASICs ‘‘subject to the ITAR’’ 

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


tkelley on DSK3SPTVN1PROD with RULES3
27438 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

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. * * * 

* * * * * 

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

Category 3, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 3A002, 

effective November 10, 2014, 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, 3A992 and 9A515.x. 

* * * * * 

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

Category 3, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 3D001, 

effective November 10, 2014, 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 and 9D515. 

* * * * * 

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

Category 3, revise the License Exception 

TSR and Related Controls paragraphs of 

Export Control Classification Number 

(ECCN) 3E001, effective November 10, 

2014, 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). 

* * * * * 

List Based License Exceptions (See Part 740 

for a description of all 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), 

MMICs described in Category XV(e)(14), and 

oscillators described in Category XV(e)(15) of 

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

CFR parts 120 through 130). See also 3E101, 

3E201 and 9E515. 

* * * * * 

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

Category 3, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 3E003, 

effective November 10, 2014, 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.’’ See also USML Category XI 

for certain ASICs. 

* * * * * 

■ 35. 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, effective November 10, 2014, to 

read as follows: 

5A001 Telecommunications systems, 

equipment, ‘‘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 is ‘‘subject to the ITAR’’ 

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

also 5A101 and 5A991. 

* * * * * 

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

Category 5, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 5A991, 

effective November 10, 2014, 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 and 5E991. 

* * * * * 

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

Category 5, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 5E001, 

effective November 10, 2014, 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. 

* * * * * 

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

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6A002, 

effective November 10, 2014, to read as 

follows: 

6A002 Optical sensors and equipment, 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. 

* * * * * 

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

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6A004, 

effective November 10, 2014, to read as 

follows: 

6A004 Optical equipment, 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. 

* * * * * 

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

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6D001, 

effective November 10, 2014, to read as 

follows: 

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

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

equipment controlled by 6A004, 6A005, 

6A008 or 6B008. 

* * * * * 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27439 

List of Items Controlled 

Related Controls: See also 6D991, and ECCN 

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

for items controlled under this entry. 

* * * * * 

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

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6D002, 

effective November 10, 2014, 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 ‘‘spacequalified’’ 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. 

* * * * * 

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

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6E001, 

effective November 10, 2014, 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. 

* * * * * 

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

Category 6, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 6E002, 

effective November 10, 2014, 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). 

* * * * * 

List of Items Controlled 

Related Controls: See also 6E992. 

* * * * * 

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

Category 7, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 7A004, 

effective November 10, 2014, 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). (2) See also 7A104 and 7A994. 

* * * * * 

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

Category 7, revise the Related Controls 

paragraph of Export Control 

Classification Number (ECCN) 7A104, 

effective November 10, 2014, 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’’ ‘‘parts’’ and 

‘‘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) This entry controls 

‘‘specially designed’’ ‘‘parts’’ and 

‘‘components’’ for gyro-astro compasses 

and other devices controlled by 7A004. 

* * * * * 

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

Category 7, revise Export Control 

Classification Number (ECCN) 7A105, 

including the heading, effective 

November 10, 2014, to read as follows: 

7A105 Receiving equipment for Global 

Navigation Satellite Systems (GNSS) (e.g., 

GPS, GLONASS, or Galileo) designed or 

modified for airborne applications and 

capable of providing navigation information 

at speeds in excess of 600 m/s (1,165 nautical 

mph), and ‘‘specially designed’’ ‘‘parts’’ and 

‘‘components’’ therefor. 

License Requirements 

Reason for Control: MT, AT 

Control(s) Country chart 

MT applies to entire 

entry.

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

List Based License Exceptions (See Part 

740 for a description of all license 

exceptions) 

LVS: N/A 

GBS: N/A 

CIV: N/A 

List of Items Controlled 

Related Controls: (1) See also 7A005 and 

7A994. (2) See Categories XI and XV 

of the U.S. Munitions List (22 CFR 

121.1) for controls on similar 

equipment ‘‘specially designed’’ for 

defense articles. 

Related Definitions: N/A 

Items: The list of items controlled is 

contained in the ECCN heading. 

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

Category 9, revise the List of Items 

Controlled paragraph of Export Control 

Classification Number (ECCN) 9A004, 

effective November 10, 2014, to read as 

follows: 

9A004 Space launch vehicles and 

‘‘spacecraft,’’ as follows (see List of 

Items Controlled). 

* * * * * 

List of Items Controlled 

Related Controls: (1) See also 9A104, 9A515, 

and 9B515. (2) See ECCNs 9E001 

(‘‘development’’) and 9E002 

(‘‘production’’) for technology for items 

controlled by this entry. (3) See USML 

Categories IV and XV for the space launch 

vehicles and other spacecraft that are 

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

120 through 130). 

Related Definitions: N/A 

Items: 

a. The International Space Station being 

developed, launched, and operated under the 

supervision of the U.S. National Aeronautics 

and Space Administration. 

b. through w. [RESERVED] 

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

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for the International Space Station. 

* * * * * 

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

between the entries for ECCNs 9A120 

and 9A610, 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, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry, except .e.

NS Column 1 

RS applies to entire 

entry, except .e.

RS Column 1 

RS applies to 

9A515.e.

RS Column 2 

MT applies to 

9A515.d when ‘‘usable in’’ ‘‘missiles’’ 

for protecting ‘‘missiles’’ against nuclear effects (e.g. 

Electromagnetic 

Pulse (EMP), Xrays, combined 

blast and thermal 

effects).

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

LVS: $1500 


tkelley on DSK3SPTVN1PROD with RULES3
27440 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

GBS: N/A 

CIV: N/A 

Special Conditions for STA 

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 

Related Controls: N/A 

Related Definitions: N/A 

Items: 

a. [RESERVED] 

b. [RESERVED] 

c. [RESERVED] 

d. Microelectronic circuits (e.g., integrated 

circuits and micro-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: 

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

103 Gy (Si)); 

d.2. A dose rate upset threshold of 5 × 108

Rads (Si)/sec (5 × 106 Gy (Si)/sec); 

d.3. A neutron dose of 1 × 1014 n/cm2 (1 

MeV equivalent); 

d.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 

d.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. 

e. Microelectronic circuits (e.g., integrated 

circuits and micro-circuits) that are rated, 

certified, or otherwise specified or described 

as meeting or exceeding all the following 

characteristics and that are ‘‘specially 

designed’’ for defense articles controlled by 

USML Category XV or items controlled by 

9A515: 

e.1. A total dose ≥1 × 105 Rads (Si) (1 × 103

Gy(Si)) and <5 × 105 Rads (Si) (5 × 103

Gy(Si)); and 

e.2. A single event effect (SEE) (i.e., single 

event latchup (SEL), single event burnout 

(SEB), or single event gate rupture (SEGR)) 

immunity to a linear energy transfer (LET) 

≥80 MeV-cm2/mg. 

Note 1 to 9A515.d and .e: Application 

specific integrated circuits (ASICs), 

integrated circuits developed and produced 

for a specific application or function, 

‘‘specially designed’’ for defense articles are 

controlled by Category XI(c) of the USML 

regardless of characteristics. 

Note 2 to 9A515.d and .e: See 3A001.a for 

controls on radiation-hardened 

microelectronic circuits ‘‘subject to the EAR’’ 

that are not controlled by 9A515.d or 

9A515.e. 

f. through y. [RESERVED] 

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

Category 9, revise Export Control 

Classification Number (ECCN) 9A515, 

effective November 10, 2014, to read as 

follows: 

9A515 ‘‘Spacecraft’’ and related 

commodities, as follows (see List of 

Items Controlled). 

License Requirements 

Reason for Control: NS, RS, MT, AT 

Control(s) Country chart 

NS applies to entire 

entry, except .e 

and .y.

NS Column 1 

RS applies to entire 

entry, except .e 

and .y.

RS Column 1 

RS applies to 

9A515.e.

RS Column 2 

MT applies to 

9A515.d when ‘‘usable in’’ ‘‘missiles’’ 

for protecting ‘‘missiles’’ against nuclear effects (e.g. 

Electromagnetic 

Pulse (EMP), Xrays, combined 

blast and thermal 

effects).

MT Column 1 

AT applies to entire 

entry.

AT Column 1 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

LVS: $1500 

GBS: N/A 

CIV: N/A 

Special Conditions for STA 

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

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

may not be used for ‘‘spacecraft’’ in 

9A515.a that provide space-based logistics, 

assembly or servicing of any spacecraft 

(e.g., refueling), unless determined by BIS 

to be eligible for License Exception STA in 

accordance with § 740.20(g) (License 

Exception STA eligibility requests for 

certain ‘‘500 series’’ and ‘‘600 series’’ end 

items). (2) 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 

Related Controls: Spacecraft, launch vehicles 

and related articles that are enumerated in 

the USML, and technical data (including 

‘‘software’’) directly related thereto, and all 

services (including training) directly 

related to the integration of any satellite or 

spacecraft to a launch vehicle, including 

both planning and onsite support, or 

furnishing any assistance (including 

training) in the launch failure analysis or 

investigation for items in 9A515.a, are 

‘‘subject to the ITAR.’’ 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, 7A004 and 7A104 

for star trackers, and 9A004 for the 

International Space Station and specially 

designed part and components therefor. 

See USML Category XI(c) for controls on 

microwave monolithic integrated circuits 

(MMICs) that are ‘‘specially designed’’ for 

defense articles. 

Related Definitions: N/A 

Items: 

‘‘Spacecraft’’ and other items described in 

ECCN 9A515 remain subject to the EAR even 

if exported, reexported, or transferred (incountry) with defense articles ‘‘subject to the 

ITAR’’ integrated into and included therein 

as integral parts of the item. In all other 

cases, such defense articles are subject to the 

ITAR. For example, a 9A515.a ‘‘spacecraft’’ 

remains ‘‘subject to the EAR’’ even when it 

is exported, reexported, or transferred (incountry) with a ‘‘hosted payload’’ described 

in USML Category XV(e)(17) incorporated 

therein. In all other cases, a ‘‘hosted payload’’ 

performing a function described in USML 

Category XV(a) always remains a USML item. 

a. ‘‘Spacecraft,’’ including satellites, and 

space vehicles, whether designated 

developmental, experimental, research or 

scientific, not enumerated in USML Category 

XV or described in 9A004. 

Note: ECCN 9A515.a includes commercial 

communications satellites, remote sensing 

satellites not identified in USML Category 

XV(a), planetary rovers, planetary and 

interplanetary probes, and in-space habitats. 

b. Ground control systems and training 

simulators ‘‘specially designed’’ for 

telemetry, tracking, and control of the 

‘‘spacecraft’’ controlled in paragraph 

9A515.a. 

c. [RESERVED] 

d. Microelectronic circuits (e.g., integrated 

circuits and micro-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: 

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

103 Gy (Si)); 

d.2. A dose rate upset threshold of 5 × 108

Rads (Si)/sec (5 × 106 Gy (Si)/sec); 

d.3. A neutron dose of 1 × 1014 n/cm2 (1 

MeV equivalent); 

d.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 

d.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. 

e. Microelectronic circuits (e.g., integrated 

circuits and micro-circuits) that are rated, 

certified, or otherwise specified or described 

as meeting or exceeding all the following 

characteristics and that are ‘‘specially 

designed’’ for defense articles controlled by 

USML Category XV or items controlled by 

9A515: 

e.1. A total dose ≥1 × 105 Rads (Si) (1 × 103

Gy(Si)) and <5 × 105 Rads (Si) (5 × 103

Gy(Si)); and 

e.2. A single event effect (SEE) (i.e., single 

event latchup (SEL), single event burnout 

(SEB), or single event gate rupture (SEGR)) 

immunity to a linear energy transfer (LET) 

≥80 MeV-cm2/mg. 

Note 1 to 9A515.d and .e: Application 

specific integrated circuits (ASICs), 

integrated circuits developed and produced 

for a specific application or function, 

specifically designed or modified for defense 

articles and not in normal commercial use 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27441 

are controlled by Category XI(c) of the USML 

regardless of characteristics. 

Note 2 to 9A515.d and .e: See 3A001.a for 

controls on radiation-hardened 

microelectronic circuits ‘‘subject to the EAR’’ 

that are not controlled by 9A515.d or 

9A515.e. 

f. through w. [RESERVED] 

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

and ‘‘attachments’’ that are ‘‘specially 

designed’’ for defense articles controlled by 

USML Category XV or items controlled by 

9A515, and that are NOT: 

1. Enumerated or controlled in the USML 

or elsewhere within ECCN 9A515; 

2. Microelectronic circuits; 

3. Described in 7A004 or 7A104; or 

4. Described in 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, 6A004.c and .d, 6A008.j.1, or 

6A998.b). 

Note to 9A515.x: ‘‘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. 

y. Items that would otherwise be within 

the scope of ECCN 9A515.x but that have 

been identified in an interagency-cleared 

commodity classification (CCATS) pursuant 

to § 748.3(e) as warranting control in 

9A515.y. 

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

between the entries for ECCNs 9B117 

and 9B610, add new entry for ECCN 

9B515, effective November 10, 2014, 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 

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 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

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

GBS: N/A 

CIV: N/A 

Special Conditions for STA 

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 

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.a, 

or USML Category XV(a) or XV(e). 

Note: ECCN 9B515.a includes equipment, 

cells, and stands ‘‘specially designed’’ for the 

analysis or isolation of faults in commodities 

enumerated in ECCN 9A515.a or USML 

Category XV(a) or XV(e). 

b. Environmental test chambers capable of 

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

designed’’ for commodities enumerated in 

9A515.a or USML Category XV(a). 

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

between the entries for ECCNs 9D105 

and 9D610, 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 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

CIV: N/A 

TSR: N/A 

Special Conditions for STA 

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

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

may not be used for 9D515.d or .e (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 

Related Controls: ‘‘Software’’ directly related 

to articles enumerated in USML Category 

XV is subject to the control of USML 

paragraph XV(f). 

Related Definitions: N/A 

Items: 

a. [RESERVED] 

b. [RESERVED] 

c. [RESERVED] 

d. ‘‘Software’’ ‘‘specially designed’’ for the 

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

failure analysis or anomaly resolution of 

commodities controlled by ECCN 9A515.d. 

e. ‘‘Software’’ ‘‘specially designed’’ for the 

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

failure analysis or anomaly resolution of 

commodities controlled by ECCN 9A515.e. 

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

revise Export Control Classification 

Number (ECCN) 9D515, effective 

November 10, 2014, 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 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

CIV: N/A 

TSR: N/A 

Special Conditions for STA 

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

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

may not be used for 9D515.b, .d, or .e. (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 

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, .d, or .e of this 

entry) ‘‘specially designed’’ for the 

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

installation, maintenance, repair, overhaul, 

or refurbishing of commodities controlled by 

ECCN 9A515 (except 9A515.d or .e) or 

9B515. 

b. ‘‘Source code’’ that: 

b.1. Contains the algorithms or control 

principles (e.g., for clock management), 

precise orbit determination (e.g., for 

ephemeris or pseudo range analysis), signal 

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

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

controlled by ECCN 9A515; 

b.2. Is ‘‘specially designed’’ for the 

integration, operation, or control of items 

controlled by ECCN 9A515; 

b.3. Contains algorithms or modules 

‘‘specially designed’’ for system, subsystem, 

component, part, or accessory calibration, 

manipulation, or control of items controlled 

by ECCN 9A515; 

b.4. Is ‘‘specially designed’’ for data 

assemblage, extrapolation, or manipulation of 

items controlled by ECCN 9A515; 

b.5. Contains the algorithms or control 

laws ‘‘specially designed’’ for attitude, 

position, or flight control of items controlled 

in ECCN 9A515; or 

b.6. Is ‘‘specially designed’’ for built-in test 

and diagnostics for items controlled by ECCN 

9A515. 

c. [RESERVED] 

d. ‘‘Software’’ ‘‘specially designed’’ for the 

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

failure analysis or anomaly resolution of 

commodities controlled by ECCN 9A515.d. 

e. ‘‘Software’’ ‘‘specially designed’’ for the 

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


tkelley on DSK3SPTVN1PROD with RULES3
27442 Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 

failure analysis or anomaly resolution of 

commodities controlled by ECCN 9A515.e. 

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

between the entries for ECCNs 9E102 

and 9E610, add new entry for ECCN 

9E515 to read as follows: 

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

the ‘‘development,’’ ‘‘production,’’ 

operation, installation, 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 

List Based License Exceptions (See Part 

740 for a description of all license 

exceptions) 

CIV: N/A 

TSR: N/A 

Special Conditions for STA 

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

Exception STA (§ 740.20(c)(1) of the 

EAR) may not be used for 9E515.d or 

.e. (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 

Related Controls: Technical data 

directly related to articles enumerated 

in USML Category XV are subject to 

the control of USML paragraph XV(f). 

Related Definitions: N/A 

Items: 

a. [RESERVED] 

b. [RESERVED] 

c. [RESERVED] 

d. ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, failure analysis or anomaly 

resolution of commodities controlled by 

ECCN 9A515.d. 

e. ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ failure 

analysis or anomaly resolution of 

commodities controlled by ECCN 

9A515.e. 

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

revise Export Control Classification 

Number (ECCN) 9E515, effective 

November 10, 2014, to read as follows: 

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

‘‘development,’’ ‘‘production,’’ 

operation, installation, 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 

Special Conditions for STA 

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

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

may not be used for 9E515.b, .d or .e. (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 

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. See 9E001 

and 9E002 for technology for the 

International Space Station and ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories,’’ and 

‘‘attachments’’ ‘‘specially designed’’ 

therefor. See USML category XV(f) for 

controls on technical data and defense 

services related to launch vehicle 

integration. 

Related Definitions: N/A 

Items: 

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

‘‘development,’’ ‘‘production,’’ installation, 

repair (including on-orbit anomaly resolution 

and analysis beyond established procedures), 

overhaul or refurbishing of commodities 

controlled by ECCN 9A515 (except 9A515.b, 

.d, or .e), 9B515, or ‘‘software’’ controlled by 

9D515.a. 

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

‘‘development,’’ ‘‘production,’’ failure 

analysis or anomaly resolution of software 

controlled by ECCN 9D515.b. 

c. [RESERVED] 

d. ‘‘Technology’’ ‘‘required’’ for the 

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

failure analysis or anomaly resolution of 

commodities controlled by ECCN 9A515.d. 

e. ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ failure 

analysis or anomaly resolution of 

commodities controlled by ECCN 9A515.e. 

Note 1: [RESERVED] 

Note 2: Activities and technology/technical 

data directly related to or required for the 

spaceflight (e.g., sub-orbital, orbital, lunar, 

interplanetary, or otherwise beyond Earth 

orbit) passenger or participant experience, 

regardless of whether the passenger or 

participant experience is for space tourism, 

scientific or commercial research, 

commercial manufacturing/production 

activities, educational, media, or commercial 

transportation purposes, are not subject to 

the ITAR or the EAR. Such activities and 

technology/technical data include those 

directly related to or required for: 

(i) ‘‘spacecraft’’ access, ingress, and egress, 

including the operation of all ‘‘spacecraft’’ 

doors, hatches, and airlocks; 

(ii) physiological training (e.g., humanrated centrifuge training or parabolic flights, 

pressure suit or spacesuit training/operation); 

(iii) medical evaluation or assessment of 

the spaceflight passenger or participant; 

(iv) training for and operation by the 

passenger or participant of health and safety 

related hardware (e.g., seating, environmental 

control and life support, hygiene facilities, 

food preparation, exercise equipment, fire 

suppression, communications equipment, 

safety-related clothing or headgear) or 

emergency procedures; 

(v) viewing of the interior and exterior of 

the spacecraft or terrestrial mock-ups; 

(vi) observing ‘‘spacecraft’’ operations (e.g., 

pre-flight checks, landing, in-flight status); 

(vii) training in ‘‘spacecraft’’ or terrestrial 

mock-ups for connecting to or operating 

passenger or participant equipment used for 

purposes other than operating the 

‘‘spacecraft’’; or 

(viii) donning, wearing or utilizing the 

passenger’s or participant’s flight suit, 

pressure suit or spacesuit, and personal 

equipment. 

Note 3 to 9E515: Neither USML Category 

XV(f) nor ECCN 9E515 control the data 

transmitted to or from a satellite or 

‘‘spacecraft,’’ whether real or simulated, 

when limited to information about the 

health, operational status, or measurements 

or function of, or raw sensor output from, the 

‘‘spacecraft,’’ ‘‘spacecraft’’ payload(s), or its 

associated subsystems or components. Such 

information is not within the scope of 

information captured within the definition of 

‘‘technology’’ in the EAR. Examples of such 

information, which are commonly referred to 

as ‘‘housekeeping data,’’ include (i) system, 

hardware, component configuration, and 

operation status information pertaining to 

temperatures, pressures, power, currents, 

voltages, and battery charges; (ii) 

‘‘spacecraft’’ or payload orientation or 

position information, such as state vector or 

ephemeris information; (iii) payload raw 

mission or science output, such as images, 

spectra, particle measurements, or field 

measurements; (iv) command responses; (v) 

accurate timing information; and (vi) link 

budget data. The act of processing such 

telemetry data—i.e., converting raw data into 

engineering units or readable products—or 

encrypting it does not, in and of itself, cause 

the telemetry data to become subject to the 

ITAR or to ECCN 9E515. All classified 

technical data directly related to items 

controlled in USML Category XV or ECCNs 

9A515, and defense services using the 


tkelley on DSK3SPTVN1PROD with RULES3
Federal Register / Vol. 79, No. 92 / Tuesday, May 13, 2014 / Rules and Regulations 27443 

classified technical data remains subject to 

the ITAR. This note does not affect controls 

in USML VX(f), ECCN 9D515, or ECCN 9E515 

on software source code or commands that 

control a ‘‘spacecraft,’’ payload, or 

associated subsystems. 

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

revise paragraph (a)(3), the introductory 

text of paragraph (a)(4), and the first 

sentence of paragraph (a)(5), to read as 

follows: 

Supplement No. 4 to Part 774— 

Commerce Control List Order of Review 

(a) * * * 

(3) Step 3. The ‘‘600 series’’ describes 

military items that were once subject to the 

ITAR. The 9x515 ECCNs describe 

‘‘spacecraft,’’ related items, and some 

radiation-hardened microelectronic circuits 

that were once subject to the ITAR under 

USML Category XV. Just as the ITAR 

effectively trumps the EAR, items described 

in a 9x515 ECCN or ‘‘600 series’’ ECCN 

trump other ECCNs on the CCL. Thus, the 

next step in conducting a classification 

analysis of an item ‘‘subject to the EAR’’ is 

to determine whether it is described in a 

9x515 ECCN or ‘‘600 series’’ ECCN paragraph 

other than a ‘‘catch-all’’ paragraph such as a 

‘‘.x’’ paragraph that controls unspecified 

‘‘parts’’ and ‘‘components’’ ‘‘specially 

designed’’ for items in that ECCN or the 

corresponding USML paragraph. If so, the 

item is classified under that 9x515 ECCN or 

‘‘600 series’’ ECCN paragraph even if it 

would also be described in another ECCN. 

(4) Step 4. If the item is not described in 

a 9x515 ECCN or ‘‘600 series’’ ECCN, then 

determine whether the item is classified 

under a 9x515 ECCN or ‘‘600 series’’ catchall paragraph, i.e., one that controls nonspecific ‘‘parts,’’ ‘‘components,’’ 

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

designed’’ for items in that ECCN or the 

corresponding USML paragraph. Such items 

are generally in the ‘‘.x’’ paragraph of ECCN 

9A515 or a ‘‘600 series’’ ECCN. * * * 

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

a ‘‘600 series’’ or in a 9x515 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 7, 2014. 

Kevin J. Wolf, 

Assistant Secretary of Commerce for Export 

Administration. 

[FR Doc. 2014–10807 Filed 5–12–14; 8:45 am] 

BILLING CODE 3510–33–P 


tkelley on DSK3SPTVN1PROD with RULES3