Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Proposed Rules 39921 

(k) Related Information 

(1) Refer to Mandatory Continuing 

Airworthiness Information (MCAI) EASA 

Airworthiness Directive 2018–0076, dated 

April 6, 2018, for related information. This 

MCAI may be found in the AD docket on the 

internet at http://www.regulations.gov by 

searching for and locating Docket No. FAA– 

2018–0707. 

(2) For more information about this AD, 

contact Tom Rodriguez, Aerospace Engineer, 

International Section, Transport Standards 

Branch, FAA, 2200 South 216th St., Des 

Moines, WA 98198; telephone and fax 206– 

231–3226. 

(3) For service information identified in 

this AD, contact Fokker Services B.V., 

Technical Services Dept., P.O. Box 1357, 

2130 EL Hoofddorp, the Netherlands; 

telephone +31 (0)88–6280–350; fax +31 

(0)88–6280–111; email technicalservices@

fokker.com; internet http://

www.myfokkerfleet.com. You may view this 

service information at the FAA, Transport 

Standards Branch, 2200 South 216th St., Des 

Moines, WA. For information on the 

availability of this material at the FAA, call 

206–231–3195. 

Issued in Des Moines, Washington, on 

August 5, 2018. 

Michael Kaszycki, 

Acting Director, System Oversight Division, 

Aircraft Certification Service. 

[FR Doc. 2018–17322 Filed 8–10–18; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR part 774 

[Docket No. 180227222–8222–01] 

Commerce Control List: Request for 

Comments Regarding Controls on 

Certain Spraying or Fogging Systems 

and ‘‘Parts’’ and ‘‘Components’’ 

Therefor 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Notice of inquiry. 

SUMMARY: The Bureau of Industry and 

Security (BIS), Department of 

Commerce, maintains the Export 

Administration Regulations, including 

the Commerce Control List (CCL). 

Certain items identified on the CCL are 

controlled for chemical/biological (CB) 

reasons, because they are identified on 

one of the common control lists 

maintained by the Australia Group 

(AG), which is a multilateral forum of 

countries (plus the European Union) 

that maintain export controls on 

specified chemicals, biological agents, 

and related equipment and technology 

that could be used in a chemical or 

biological weapons (CBW) program. 

Among the items subject to these CB 

controls are spraying or fogging systems 

described in Export Control 

Classification Number (ECCN) 2B352.i 

on the CCL. Through this notice, BIS is 

seeking public comments as part of a 

review of the effectiveness of its 

controls on these systems, and ‘‘parts’’ 

and ‘‘components’’ therefor, to ensure 

that the descriptions of these items on 

the CCL are clear, do not inadvertently 

control items in normal commercial use, 

accurately reflect CB-related 

technological capabilities and 

developments, and are consistent with 

the principal objective of the AG, which 

is to ensure that exports of certain 

chemicals, biological agents, and dualuse chemical and biological 

manufacturing facilities and equipment, 

do not contribute to the spread of 

chemical and biological weapons 

(CBW). This notice also requests public 

comments on potential alternatives to 

the current controls in ECCN 2B352.i. 

DATES: Comments must be received by 

BIS no later than October 12, 2018. 

ADDRESSES: Comments may be 

submitted via the Federal eRulemaking 

Portal (http://www.regulations.gov). You 

can find this notice by searching on its 

regulations.gov docket number, which is 

BIS–2018–0013. Comments may also be 

submitted via email to 

publiccommments@bis.doc.gov or on 

paper 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. Please refer 

to RIN 0694–XC042 in all comments 

and in the subject line of email 

comments. All comments (including 

any personally identifying information) 

will be made available for public 

inspection and copying. 

FOR FURTHER INFORMATION CONTACT: For 

questions on the CB controls that apply 

to spraying or fogging systems described 

in ECCN 2B352.i, contact Richard P. 

Duncan, Ph.D., Director, Chemical and 

Biological Controls Division, Office of 

Nonproliferation and Treaty 

Compliance, Bureau of Industry and 

Security, Telephone: (202) 482–3343, 

Email: Richard.Duncan@bis.doc.gov. 

For questions on the submission of 

comments in response to this notice of 

inquiry, contact Willard Fisher, 

Regulatory Policy Division, Office of 

Exporter Services, Bureau of Industry 

and Security, U.S. Department of 

Commerce, Phone: (202) 482–2440. 

SUPPLEMENTARY INFORMATION: 

Background 

The Bureau of Industry and Security 

(BIS), Department of Commerce, 

maintains the Export Administration 

Regulations (EAR) (15 CFR parts 730– 

774), including the Commerce Control 

List (CCL) (Supplement No. 1 to part 

774 of the EAR). Through this notice, 

BIS is seeking public comments as part 

of a review of the effectiveness of its 

controls on spraying or fogging systems, 

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

that are described in paragraph (i) of 

Export Control Classification Number 

(ECCN) 2B352 on the CCL. The items 

controlled by ECCN 2B352.i are subject 

to chemical/biological (CB) controls on 

the CCL, because they are identified on 

one of the common control lists 

maintained by the Australia Group 

(AG), specifically, the AG ‘‘Control List 

of Dual-Use Biological Equipment and 

Related Technology and Software.’’ The 

AG is a multilateral forum consisting of 

42 participating countries and the 

European Union that maintain export 

controls on specified chemicals, 

biological agents, and related equipment 

and technology that could be used in a 

chemical or biological weapons 

program. 

Current EAR Controls on Spraying or 

Fogging Systems 

Currently, ECCN 2B352.i controls 

complete spraying or fogging systems, 

spray booms, and arrays of aerosol 

generating units that are: (1) ‘‘specially 

designed’’ or modified for fitting to 

aircraft, ‘‘lighter than air vehicles,’’ or 

‘‘unmanned aerial vehicles’’ (‘‘UAVs’’); 

and (2) capable of delivering, from a 

liquid suspension, an initial droplet 

volume median diameter (‘VMD’) of less 

than 50 microns at a flow rate of greater 

than 2 liters per minute. This ECCN also 

controls aerosol generating units that are 

‘‘specially designed’’ for fitting to the 

aforementioned equipment. 

The Technical Notes immediately 

following ECCN 2B352.i clarify the 

scope of these controls and provide 

guidance on how to evaluate certain 

characteristics (e.g., droplet size) to 

determine whether specific equipment 

is controlled under this ECCN. 

Technical Note 1 states that aerosol 

generating units, for purposes of the 

controls in ECCN 2B352.i, are devices 

‘‘specially designed’’ or modified for 

fitting to ‘‘aircraft’’ and include nozzles, 

rotary drum atomizers and similar 

devices. Technical Note 2 clarifies the 

scope of ECCN 2B352 by indicating that 

this ECCN does not control spraying or 

fogging systems and ‘‘parts’’ and 

‘‘components’’ therefor, as described in 

2B352.i, that are demonstrated not to be 


sradovich on DSK3GMQ082PROD with PROPOSALS
39922 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Proposed Rules 

capable of delivering biological agents 

in the form of infectious aerosols. 

Technical Note 3 provides guidance on 

how to measure ‘VMD’ for droplets 

produced by spray equipment or 

nozzles ‘‘specially designed’’ for use on 

‘‘aircraft’’ or ‘‘UAVs,’’ indicating that, 

pending the adoption of internationally 

accepted standards, ‘VMD’ should be 

measured using either of the following 

methods: (1) Doppler ‘‘laser’’ method; or 

(2) forward ‘‘laser’’ diffraction method. 

The control text in ECCN 2B352.i, as 

described above, is consistent with the 

corresponding controls described in the 

AG ‘‘Control List of Dual-Use Biological 

Equipment and Related Technology and 

Software,’’ which were established to 

address a very specific threat, i.e., the 

dissemination of biological agents from 

the air. 

Proposed Alternatives to the Current 

Controls in ECCN 2B352.i 

As part of its review of the ECCN 

2B352.i controls on spraying or fogging 

systems, and ‘‘parts’’ and ‘‘components’’ 

therefor, BIS is considering expanding 

the scope of these controls to include: 

(1) Systems for the dissemination of 

chemicals controlled by ECCN 1C350 or 

1C355 (currently, CB controls apply 

only to systems for the dissemination of 

biological agents controlled by ECCN 

1C351); and (2) ground-based systems 

(currently, CB controls apply only to 

airborne systems). These changes are 

being considered because potential 

chemical/biological warfare (CBW) 

threats are likely to include the 

dissemination of chemical agents, as 

well as the dissemination of biological 

agents, and may well involve groundbased methods of dissemination, as well 

as airborne means of dissemination. 

Consequently, BIS is considering one 

or more of the following options with 

respect to the EAR controls on spraying 

or fogging systems, and ‘‘parts’’ and 

‘‘components’’ therefor. 

(1) Removing the criterion in ECCN 

2B352.i that currently limits CB controls 

to those systems that are ‘‘specially 

designed’’ or modified for fitting to 

‘‘aircraft,’’ ‘‘lighter than air vehicles,’’ or 

‘‘UAVs.’’ The rationale for this change is 

that the ability of such systems to 

produce an aerosol is not determined by 

whether the systems are ground-based 

or airborne. 

(2) Removing the criterion in ECCN 

2B352.i based on initial droplet size 

(i.e., an initial droplet ‘VMD’ of less 

than 50 microns). The rationale for this 

change is that initial droplet size is not 

necessarily a feature that is measured 

(or otherwise addressed) by all 

manufacturers of these systems. In 

addition, the initial droplet size 

currently indicated in ECCN 2B352.i is 

based solely on the airborne 

dissemination of biological agents (i.e., 

those controlled by ECCN 1C351) and 

would not necessarily apply to systems 

for the airborne dissemination of 

chemicals (i.e., those controlled by 

ECCN 1C350 or 1C355) or the groundbased dissemination of such chemicals 

or biological agents. 

(3) Lowering the flow rate at which 

spraying or fogging systems are 

controlled under ECCN 2B352.i. 

Currently, ECCN 2B352.i specifies a 

flow rate of ‘‘greater than 2 liters per 

minute.’’ However, BIS acknowledges 

that this change would involve 

determining a lower flow rate that 

would not catch typical commercial 

systems (e.g., systems designed for 

agricultural use), except when deemed 

necessary to ensure the continued 

effectiveness of CB controls on spraying 

or fogging systems. 

(4) Developing a control that would 

apply to spraying or fogging systems 

‘‘specially designed’’ for the 

dissemination or dispersion of 

chemicals controlled by ECCN 1C350 or 

1C355 or biological agents controlled by 

ECCN 1C351 in a manner likely to cause 

significant harm to humans or livestock 

or serious damage to crops. 

With respect to option #4 described 

above, note that paragraph (a)(1) of the 

definition of ‘‘specially designed’’ in 

Section 772.1 of the EAR states that an 

item is ‘‘specially designed’’ if, as a 

result of ‘‘development,’’ it ‘‘has 

properties peculiarly responsible for 

achieving or exceeding the performance 

levels, characteristics, or functions in 

the relevant ECCN or U.S. Munitions 

List (USML) paragraph.’’ Therefore, if 

the term ‘‘specially designed’’ were used 

in the control text for spraying or 

fogging systems in ECCN 2B352.i, the 

only systems that would be captured by 

these controls would be those that are 

peculiarly responsible for achieving the 

dissemination or dispersion of 

chemicals controlled by ECCN 1C350 or 

1C355 or biological agents controlled by 

ECCN 1C351 in a manner likely to cause 

significant harm to humans or livestock 

or serious damage to crops (i.e., 

properties that would distinguish these 

systems from typical commercial 

systems, such as those designed for 

agricultural applications). 

Consequently, under option #4, the 

controls in ECCN 2B352.i would not 

apply to spraying or fogging systems 

designed for commercial use that have 

performance levels, characteristics, or 

functions that are capable of, but not 

peculiarly responsible for, achieving the 

dissemination or dispersion of 

chemicals controlled by ECCN 1C350 or 

1C355 or biological agents controlled by 

ECCN 1C351 in the manner described 

above. 

Request for Comments 

BIS is publishing this notice of 

inquiry to obtain public comments as 

part of a review of the effectiveness of 

the EAR controls on spraying or fogging 

systems, and ‘‘parts’’ and ‘‘components’’ 

therefor, as currently described in ECCN 

2B352.i. Specifically, BIS is seeking 

comments that address whether the 

descriptions of these items on the CCL: 

(1) Are clear; (2) do not inadvertently 

control items in normal commercial use; 

(3) accurately reflect CB-related 

technological capabilities and 

developments; and (4) are consistent 

with the principal objective of the AG, 

which is to ensure that exports of 

certain chemicals, biological agents, and 

dual-use chemical and biological 

manufacturing facilities and equipment 

do not contribute to the spread of 

chemical and biological weapons 

(CBW). 

The public comments submitted in 

response to this notice of inquiry should 

address specific aspects of the current 

controls in ECCN 2B352.i in relation to 

the four criteria described above. For 

example, if the current control text is 

not sufficiently clear or does not 

accurately reflect CB-related 

technological capabilities and 

developments, please identify the 

specific aspects in which the current 

controls fall short with respect to these 

criteria. In addition, please indicate: (1) 

The extent to which the existing 

controls in ECCN 2B352.i would apply 

to any spraying or fogging systems that 

are currently being manufactured and/or 

sold; or (2) if the existing controls do 

not apply to any current systems, what 

specific aspects (e.g., flow rate or 

‘VMD’) would differentiate such 

systems from the systems described in 

ECCN 2B352.i. Also, if applicable, 

describe the manner in which your 

company evaluates spraying or fogging 

equipment, and ‘‘parts’’ and 

‘‘components’’ therefor, consistent with 

Technical Note 2 to ECCN 2B352 as 

described above, which states that this 

ECCN does not control items specified 

in 2B352.i if they are ‘‘demonstrated not 

to be capable of delivering biological 

agents in the form of infectious 

aerosols.’’ 

In addition, BIS encourages the public 

to submit comments on the 

aforementioned options to modify the 

current controls in ECCN 2B352.i. 

Comments on these options should 

focus on the extent to which they would 

satisfy the four criteria described above 

and also address the potential impact of 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Proposed Rules 39923 

1 17 CFR 145.9. Commission regulations referred 

to herein are found at 17 CFR chapter I (2018), and 

are accessible on the Commission’s website at 

https://www.cftc.gov/LawRegulation/Commodity

ExchangeAct/index.htm. 

2See Remarks of Acting Chairman J. Christopher 

Giancarlo before the 42nd Annual International 

Futures Industry Conference in Boca Raton, FL, 

Mar. 15, 2017, available at https://www.cftc.gov/ 

PressRoom/SpeechesTestimony/opagiancarlo-20. 

On February 24, 2017, President Donald J. Trump 

issued Executive Order 13777: Enforcing the 

Regulatory Reform Agenda (E.O. 13777). E.O. 13777 

directs federal agencies, among other things, to 

designate a Regulatory Reform Officer and establish 

a Regulatory Reform Task Force. Although the 

CFTC, as an independent federal agency, is not 

bound by E.O. 13777, the Commission is 

nevertheless engaging in an agency-wide review of 

its rules, regulations, and practices to make them 

simpler, less burdensome, and less costly. See 

Request for Information, 82 FR 23756 (May 24, 

2017). 

3 7 U.S.C. 1 et seq. 

4The term ‘‘derivatives clearing organization’’ is 

statutorily defined to mean a clearing organization 

in general. However, for purposes of the discussion 

herein, the term ‘‘DCO’’ refers to a CommissionContinued 

these alternative controls on specific 

types of spraying or fogging systems 

(including ‘‘parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments’’ 

therefor) that are currently being 

manufactured and/or sold or that are 

likely to be manufactured and/or sold in 

the foreseeable future. Comments on 

option #4 (where the ECCN 2B352.i 

control text would include the term 

‘‘specially designed’’) should not only 

address this option with reference to the 

four criteria described above, but also 

identify any performance levels, 

characteristics, or functions that clearly 

distinguish commercial spraying or 

fogging systems from those systems 

having properties that are peculiarly 

responsible for achieving the 

dissemination or dispersion of 

chemicals controlled by ECCN 1C350 or 

1C355 or biological agents controlled by 

ECCN 1C351 in a manner likely to cause 

significant harm to humans or livestock 

or serious damage to crops. 

Dated: August 6, 2018. 

Richard E. Ashooh, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2018–17249 Filed 8–10–18; 8:45 am] 

BILLING CODE 3510–33–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 39 and 140 

RIN 3038–AE65 

Exemption From Derivatives Clearing 

Organization Registration 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Commodity Futures 

Trading Commission (Commission) is 

proposing amendments to its 

regulations to establish a regulatory 

framework within which the 

Commission may exempt a clearing 

organization that is organized outside of 

the United States (hereinafter referred to 

as ‘‘non-U.S. clearing organization’’) 

from registration as a derivatives 

clearing organization (DCO) in 

connection with the clearing 

organization’s clearing of swaps. In 

addition, the Commission is proposing 

certain amendments to its delegation 

provisions in its regulations. 

DATES: Comments must be received on 

or before October 12, 2018. 

ADDRESSES: You may submit comments, 

identified by ‘‘Exemption from 

Derivatives Clearing Organization 

Registration’’ and RIN number 3038– 

AE65, by any of the following methods: 

• CFTC Comments Portal: https://

comments.cftc.gov. Select the ‘‘Submit 

Comments’’ link for this rulemaking and 

follow the instructions on the Public 

Comment Form. 

• Mail: Send to Christopher 

Kirkpatrick, Secretary of the 

Commission, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street NW, 

Washington, DC 20581. 

• Hand Delivery/Courier: Follow the 

same instructions as for Mail, above. 

Please submit your comments using 

only one of these methods. To avoid 

possible delays with mail or in-person 

deliveries, submissions through the 

CFTC Comments Portal are encouraged. 

All comments must be submitted in 

English, or if not, accompanied by an 

English translation. Comments will be 

posted as received to https://

comments.cftc.gov. You should submit 

only information that you wish to make 

available publicly. If you wish the 

Commission to consider information 

that you believe is exempt from 

disclosure under the Freedom of 

Information Act (FOIA), a petition for 

confidential treatment of the exempt 

information may be submitted according 

to the procedures established in § 145.9 

of the Commission’s regulations.1

The Commission reserves the right, 

but shall have no obligation, to review, 

pre-screen, filter, redact, refuse or 

remove any or all of your submission 

from https://comments.cftc.gov that it 

may deem to be inappropriate for 

publication, such as obscene language. 

All submissions that have been redacted 

or removed that contain comments on 

the merits of the rulemaking will be 

retained in the public comment file and 

will be considered as required under the 

Administrative Procedure Act and other 

applicable laws, and may be accessible 

under the FOIA. 

FOR FURTHER INFORMATION CONTACT: 

Eileen A. Donovan, Deputy Director, 

202–418–5096, edonovan@cftc.gov; 

Parisa Abadi, Associate Director, 202– 

418–6620, pabadi@cftc.gov; Eileen R. 

Chotiner, Senior Compliance Analyst, 

202–418–5467, echotiner@cftc.gov; 

Abigail S. Knauff, Special Counsel, 202– 

418–5123, aknauff@cftc.gov; Division of 

Clearing and Risk, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street NW, 

Washington, DC 20581. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

A. Project KISS 

B. Statutory and Regulatory Framework for 

Swaps Execution and Clearing 

C. Statutory and Regulatory Requirements 

for Registration and Operation of DCOs 

II. Proposed Amendments to Part 39 

A. Regulation 39.1—Scope 

B. Regulation 39.2—Definitions 

C. Regulation 39.6—Exemption Provisions 

D. Regulation 39.9—Scope 

III. Proposed Amendments to Part 140— 

Delegations of Authority 

IV. Request for Comments 

V. Consideration of Costs and Benefits 

A. Introduction 

B. Proposed Regulation 39.6 

C. Section 15(a) Factors 

VI. Related Matters 

A. Regulatory Flexibility Act 

B. Paperwork Reduction Act 

I. Background 

A. Project KISS 

The Commission is engaging in an 

agency-wide review of its rules, 

regulations, and practices to make them 

simpler, less burdensome, and less 

costly, and to make progress on G–20 

regulatory reforms. This initiative is 

called Project KISS, which stands for 

‘‘Keep It Simple, Stupid.’’ 2 The 

Commission is proposing to adopt 

regulations that would codify the 

policies and procedures that the 

Commission is currently following with 

respect to granting exemptions from 

DCO registration in order to make such 

policies and procedures transparent to 

all potential applicants. 

B. Statutory and Regulatory Framework 

for Swaps Execution and Clearing 

The Commodity Exchange Act (CEA) 3

provides that a clearing organization 

may not ‘‘perform the functions of a 

[DCO]’’ 4 with respect to swaps unless 


sradovich on DSK3GMQ082PROD with PROPOSALS