Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Rules and Regulations 67055 

beyond their life limits. The rule also 

required that type certificate and design 

approval holders of life-limited parts 

provide instructions on how to mark a 

part indicating its current status, when 

requested by persons removing such a 

part. This document corrects error in the 

codified text of that document. 

DATES: This amendment becomes 

effective: November 12, 2014. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

action, contact Marcus Cunningham, 

Flight Standards Service, AFS–300, 

Federal Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone: (202) 

267–1694, facsimile (202) 267–1736, or 

email: marcus.cunningham@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Good Cause for Immediate Adoption 

Without Prior Notice 

Section 553(b)(3)(B) of the 

Administrative Procedure Act (APA) (5 

U.S.C. 551 et seq.) authorizes agencies 

to dispense with notice and comment 

procedures for rules when the agency 

for ‘‘good cause’’ finds that those 

procedures are ‘‘impracticable, 

unnecessary, or contrary to the public 

interest.’’ Under this section, an agency, 

upon finding good cause, may issue a 

final rule without seeking comment 

prior to the rulemaking. 

Section 553(d)(3) of the 

Administrative Procedure Act requires 

that agencies publish a rule not less 

than 30 days before its effective date, 

except as otherwise provided by the 

agency for good cause found and 

published with the rule. 

This document is correcting an error 

that is in 14 CFR 43.10(c)(6). This 

correction will not impose any 

additional restrictions on the persons 

affected by these regulations. 

Furthermore, any additional delay in 

making the regulations correct would be 

contrary to the public interest. 

Accordingly, the FAA finds that (i) 

public comment on these standards 

prior to promulgation is unnecessary, 

and (ii) good cause exists to make this 

rule effective in less than 30 days. 

Background 

On January 15, 2002, the FAA 

published a final rule entitled, ‘‘Safe 

Disposition of Life Limited Aircraft 

Parts’’ (67 FR 2110). 

In that final rule, the FAA revised the 

regulations to require that all persons 

who remove any life-limited aircraft 

part to safely control that part to deter 

the installation of that part after it has 

reached its life limit. When published, 

a typographical error was created and 

the word ‘‘product’’ was inadvertently 

replaced with the word ‘‘produce’’ in 14 

CFR 43.10(c)(6). 

Technical Amendment 

The technical amendment will 

replace the word ‘‘produce’’ with the 

word ‘‘product’’ in § 43.10(c)(6). 

Because the changes in this technical 

amendment result in no substantive 

change, we find good cause exists under 

5 U.S.C. 553(d)(3) to make the 

amendment effective in less than 30 

days. 

List of Subjects in 14 CFR Part 43 

Aircraft, Aviation safety, Life-limited 

parts, Reporting and recordkeeping 

requirements. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations as follows: 

PART 43—MAINTENANCE, 

PREVENTIVE MAINTENANCE, 

REBUILDING, AND ALTERATION 

■ 1. The authority citation for part 43 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701, 

44703, 44705, 44707, 44711, 44713, 44717, 

44725. 

■ 2. Revise § 43.10(c)(6) to read as 

follows: 

§ 43.10 Disposition of life-limited aircraft 

parts. 

* * * * * 

(c) * * * 

(6) Mutilation. The part may be 

mutilated to deter its installation in a 

type certificated product. The 

mutilation must render the part beyond 

repair and incapable of being reworked 

to appear to be airworthy. 

* * * * * 

Issued under authority of 49 U.S.C. 106(f), 

44701(a), and 44707 in Washington, DC, on 

November 5, 2014. 

Lirio Liu, 

Director, Office of Rulemaking. 

[FR Doc. 2014–26626 Filed 11–10–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 734, 740, 748, 758, and 

774 

[Docket No. 130110030–4928–03] 

RIN 0694–AF87 

Clarifications and Corrections 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: Final rule. 

SUMMARY: This final rule makes 

clarifications and corrections to an 

interim final rule that was published on 

May 13, 2014. The May 13 rule added 

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 the 

May 13 rule and existing ECCNs on the 

Commerce Control List (CCL) will 

control such items. The May 13 rule 

also revised various sections of the EAR 

to provide the proper level of control for 

the new ECCNs. The vast majority of the 

changes included in the May 13 rule 

have been implemented as published in 

the interim final rule, so those change 

are not republished in this final rule. A 

full description of those changes can be 

found in the Background section and 

the regulatory text of the May 13 rule. 

The changes included in this final rule 

are limited to corrections and 

clarifications to what was included in 

the interim final rule. These corrections 

and clarifications were also informed by 

comments received in response to the 

May 13 rule that included a request for 

comments. 

DATES: Effective Date: This rule is 

effective November 10, 2014. 

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 


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67056 Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Rules and Regulations 

the Regulatory Policy Division, Office of 

Exporter Services, Bureau of Industry 

and Security, at 202–482–2440 or email: 

rpd2@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

This final rule makes corrections and 

clarifications to the interim final rule, 

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), that was 

published on May 13, 2014 (79 FR 

27417) (May 13 interim final rule). The 

May 13 rule added 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 the May 13 rule and 

preexisting ECCNs on the Commerce 

Control List (CCL) will control such 

items. The May 13 rule also revised 

various sections of the EAR to provide 

the proper level of control for the new 

ECCNs. 

The vast majority of the changes 

included in the May 13 rule have been 

implemented as published in the 

interim final rule, so those change are 

not republished in this final rule. A full 

description of those changes can be 

found in the Background section and 

the regulatory text of the May 13 rule. 

The changes included in this final rule 

are limited to corrections and 

clarifications to what was included in 

the interim final rule. These corrections 

and clarifications were also informed by 

comments received in response to the 

May 13 rule that included a request for 

comments. This rule also adds a 

clarification to § 758.6 of the EAR 

stating that compliance with 22 CFR 

123.9(b)(1) is sufficient to satisfy the 

Destination Control Statement 

requirement for the EAR of shipments 

that include both items subject to the 

EAR and items subject to the 

International Traffic in Arms 

Regulations (ITAR). 

The May 13 rule was 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, including the final rules 

published May 13 by the Departments of 

Commerce and State and the rules 

making corrections to the May 13 rules, 

are part of the President’s Export 

Control Reform Initiative. The 

corrections and clarifications to the May 

13 rule are also part of Commerce’s 

retrospective regulatory review plan 

under Executive Order (EO) 13563. 

In § 734.4 (De minimis U.S. content) 

under the introductory text of paragraph 

(a)(6), this final rule adds a reference to 

9x515 to conform to the scope of 

paragraph (a)(6)(i) and (ii). The May 13 

interim final rule added 9x515 to 

paragraph (a)(6)(i) and (ii), but did not 

add a reference to the introductory text 

of paragraph (a)(6). In order to provide 

greater clarity regarding the scope of 

paragraph (a)(6) and to conform with the 

existing text of paragraphs (a)(6)(i) and 

(ii), this final rule adds the reference to 

9x515 to the introductory text of this 

paragraph. 

In § 740.2 (Restrictions on all license 

exceptions) under paragraph (a)(5)(i), 

this final rule revises the cross reference 

to § 740.15(b) (License Exception AVS) 

to reference the correct name of the 

license exception. The May 13 final rule 

revised the heading of License 

Exception AVS, but inadvertently 

omitted the phrase ‘‘or spacecraft’’ when 

referencing the scope of License 

Exception AVS in paragraph (a)(5)(i) of 

this section. 

In Supplement No. 2 to part 748 

(Unique Application and Submission 

Requirements), this final rule revises the 

introductory text in paragraph (y)(1) and 

the introductory text in paragraph (y)(2) 

to make the same clarification. This 

final rule removes the phrase ‘‘to a 

country’’ and replaces that phrase with 

the more specific phrase ‘‘for launch in 

or by a country’’. The intent of both of 

these paragraphs is to require unique 

application and submission 

requirements for exports of satellites 

under ECCN 9A515.a for launch in or by 

one of the countries identified under 

(y)(1) or (y)(2). The new text will make 

it clearer for when applications will be 

subject to these unique application and 

submission requirements. 

In the Commerce Control List in 

Supplement No. 1 to part 774, this final 

rule makes clarifications to three Export 

Control Classification Numbers 

(ECCNs): 9A004, 9A515 and 9E515, and 

adds a new Note to Category 9. 

In Category 9 under Product Group E: 

‘‘Technology,’’ this final rule 

redesignates the Note to Product Group 

E as Note 1 and adds a new Note 2 to 

Product Group E. This final rule adds 

Note 2 to provide guidance on the 

classification of telemetry data specific 

to commodities classified under ECCNs 

9A004 and 9A515. This is the same type 

of note that was included in ECCN 

9E515 under Note 3 in the interim final 

rule, but because the note also has 

applicability to ECCNs 9E001 and 

9E002, as they relate to 9A004, BIS 

decided to remove Note 3 to 9E515 and 

add in its place a Note 2 that covers the 

concept for purposes of Category 9 

Product Group E. This note clarifies that 

for purposes of Category 9, Product 

Group E that ECCNs 9E001, 9E002 and 

9E515 do not 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. This note 

clarifies that such information is not 

within the scope of information 

captured within the definition of 

‘‘technology’’ in the EAR for purposes of 

ECCNs 9E001, 9E002 or 9E515. 

ECCN 9A004. In ECCN 9A004, this 

final rule adds an items paragraph .y to 

the List of Items Controlled section. 

This new items paragraph .y will 

control items that would otherwise be 

within the scope of 9A004.x but that 

have been identified in an interagencycleared commodity classification 

(CCATS) pursuant to § 748.3(e) as 

warranting control in 9A004.y. The 

§ 748.3(e) CCATS process is an 

established process under the EAR. This 

clarification to 9A004 specifies where 

certain spacecraft related items 

determined to not warrant being 

classified as ‘‘specially designed’’ under 

a 9x515 ECCN may be designated on the 

CCL that would otherwise have been 

classified under 9A00.x and controlled 

for national security NS 1 reasons. Items 

determined to be classified under 

9A004.y will be controlled for antiterrorism AT 1 reasons to fewer 

destinations compared to items 

classified under 9A004.x. 

ECCN 9A515. This final rule makes 

three clarifications to ECCN 9A515.The 

final rule adds a Related Controls 

paragraph in the List of Items Controlled 

section to inform people to see ECCN 

9A610.g for pressure suits used for high 

altitude aircraft. This new Related 

Controls paragraph is a conforming 

change for the additions of new ‘‘items’’ 

paragraph f in 9A515, described below. 

This final rule also revises the Note to 

items paragraph .a in the List of Items 

Controlled section. The revision to the 

note consists of removing the phrase 

‘‘not identified in USML Category 

XV(a)’’ from the middle of the note and 

adding it to the end of this note. The 

phrase ‘‘not identified in USML 

Category XV(a)’’ is intended to modify 

all the items referenced earlier in the 

note. Therefore, the placement of the 


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Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Rules and Regulations 67057 

phrase in the context of the larger note 

was not correct. This final rule corrects 

the placement of this phrase by adding 

it to the end of the Note to paragraph .a 

in the List of Items Controlled section. 

Lastly, for ECCN 9A515, this final rule 

also adds a new items paragraph .f in 

the List of Items Controlled section of 

9A515 to clarify that pressure suits (i.e., 

space suits) capable of operating at 

altitudes 55,000 feet above sea level are 

controlled under this ECCN. These 

space suits were removed from USML 

Category XV and were intended to be 

classified under 9A515, but because of 

an oversight an items paragraph was not 

included in 9A515 to control these 

suits, although the intent as stated in the 

May 13 interim final rule was that such 

commodities would be controlled along 

with the other ‘‘spacecraft’’ and related 

commodities in 9A515. 

ECCN 9E515. This final rule removes 

Note 3 to 9E515 at the end of the 

‘‘items’’ paragraph in the List of Items 

Controlled section to conform to the 

addition of the same type of note to 

Category 9 Product Group E: 

Technology, which was described 

above. The substance of the note is the 

same, only the location has been 

changed in Category 9 because of the 

note’s applicability to other Category 9 

technology ECCNs, specifically 9E001, 

9E002 and 9E515. 

Other Clarifications to the EAR 

This rule also add a clarification to 

§ 758.6 of the EAR stating that 

compliance with 22 CFR 123.9(b)(1) is 

sufficient to satisfy the Destination 

Control Statement requirement for the 

EAR for shipments that include both 

items subject to the EAR and to the 

International Traffic in Arms 

Regulations (ITAR). 

Addressing Public Comments That May 

Be Received 

The May 13 interim final rule 

requested public comment through 

November 10, 2014. BIS will review all 

comments received at that time and 

address them through a subsequent 

rulemaking. 

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 on an ongoing basis, 

including through the comments to be 

submitted and as a result of new 

information and results from AES data. 

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. 

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 7, 

2014, 79 FR 46959 (August 11, 2014), 

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. 

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 final rule has been 

determined to be not significant for 

purposes of Executive Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor is subject to a penalty 

for failure to comply with, a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

OMB control number. This regulation 

involves collections previously 

approved by the OMB under control 

numbers 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 43.8 minutes for a 

manual or electronic submission. This 

rule does not alter any information 

collection requirements; therefore, total 

burden hours associated with the PRA 

and OMB control number 0694–0088 

are not expected to increase as a result 

of this rule. You may send comments 

regarding the collection of information 

associated with this rule, including 

suggestions for reducing the burden, to 

Jasmeet K. Seehra, Office of 

Management and Budget (OMB), by 

email to Jasmeet_K._Seehra@

omb.eop.gov, or by fax to (202) 395– 

7285. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Department finds that there is 

good cause under 5 U.S.C. 553(b)(3)(B) 

to waive the provisions of the 

Administrative Procedure Act requiring 

prior notice and the opportunity for 

public comment because they are 

unnecessary. The changes included in 

this final rule are limited to corrections 

and clarifications to what was included 

in the interim final rule. These revisions 

are non-substantive, or are limited to 

only clarifying the regulations to ensure 

consistency with the intent of the May 

13, 2014 interim final rule; therefore, 

providing an additional opportunity for 

public comment on these corrections is 

unnecessary. In addition, for the 

revision to § 758.6, the Department finds 

that there is good cause under 5 U.S.C. 

553(b)(3)(B) to waive the provisions of 

the Administrative Procedure Act 

requiring prior notice and the 

opportunity for public comment 

because they are contrary to the public 

interest. BIS implements a revision to 

§ 758.6 of the EAR to clarify that 

compliance with § 123.9(b)(1) of the 

ITAR is sufficient for compliance with 

the Destination Control Statement 

requirement in § 758.6(1). Based on 

questions received by the U.S. 

Government since the publication in 

April 16, 2013 initial implementation of 

Export Control Reform rules by 

Commerce (78 FR 22661) and State (78 

FR 22740), confusion exists in industry 

as to whether § 758.6 requires exporters 

to include the Destination Control 

Statement provided in the EAR in 

addition to the statement provided in 

§ 123.9(b)(1) of the ITAR for shipments 

including both items subject to the EAR 

and defense articles subject to the ITAR. 

The intent of the April 16, 2013 

Commerce rule was not to require an 

additional Commerce Destination 

Control Statement for transactions 

authorized by State because it would be 

redundant with the State Destination 

Control Statement. The clarification to 

§ 758.6 will address this perceived 

confusion and clarify that an EAR 

Destination Control Statement is not 

required in such cases. 


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In addition, BIS finds good cause to 

waive the 30-day delay in effectiveness 

under 5 U.S.C. 553(d)(3) because it will 

allow the corrections and clarifications 

to go into effect at the same time as the 

related provisions from the May 13, 

2014 rule. This will reduce the potential 

for confusion among the public. 

5. 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 the certification was 

provided in the May 13 interim final 

rule and is not repeated here. BIS did 

not receive any comments in response 

to the proposed rule regarding the 

economic impact of this rule or to the 

certification made by the Chief Counsel. 

As a result, a final regulatory flexibility 

analysis is not required and one was not 

prepared. 

List of Subjects 

15 CFR Parts 734, 740, 748 and 758 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, the Export 

Administration Regulations (15 CFR 

Parts 730–774) are amended as follows: 

PART 734—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 734 continues to read as follows: 

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

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

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

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

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

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

Comp., p. 783; E.O. 13637 of March 8, 2013, 

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

November 7, 2013, 78 FR 67289 (November 

12, 2013); Notice of August 7, 2014, 79 FR 

46959 (August 11, 2014). 

■ 2. Section 734.4 is amended by 

revising the introductory text of 

paragraph (a)(6) to read as follows: 

§ 734.4 De minimis U.S. content. 

(a) * * * 

(6) 9x515 and ‘‘600 series.’’ 

* * * * * 

PART 740—[AMENDED] 

■ 3. 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 7, 2014, 79 

FR 46959 (August 11, 2014). 

■ 4. Section 740.2 is amended by 

revising paragraph (a)(5)(i) 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, aircraft or 

spacecraft). 

* * * * * 

PART 748—[AMENDED] 

■ 5. 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 7, 2014, 79 FR 46959 (August 11, 

2014). 

■ 6. Supplement No. 2 to part 748 

(Unique Application and Submission 

Requirements) is amended by revising 

introductory text of paragraph (y)(1) and 

the introductory text of paragraph (y)(2) 

to read as follows: 

Supplement No. 2 to Part 748—Unique 

Application and Submission 

Requirements 

* * * * * 

(y) * * * 

(1) A license application to export a 

satellite controlled by ECCN 9A515.a for 

launch in or by 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 

CFR 120.31 and 120.32), must include: 

* * * * * 

(2) A license application to export a 

satellite controlled by ECCN 9A515.a for 

launch in or by 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 CFR 

120.31 and 120.32), must include: 

* * * * * 

PART 758—[AMENDED] 

■ 7. 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 

7, 2014, 79 FR 46959 (August 11, 2014). 

■ 8. Section 758.6 is amended by adding 

one sentence at the end of paragraph (a) 

to read as follows: 

§ 758.6 Destination control statement and 

other information furnished to consignees. 

(a) * * * Compliance with the 

requirements described in § 123.9(b) of 

the ITAR constitutes compliance with 

the requirements of this paragraph (a) 

for shipments containing both items 

subject to the EAR and defense articles 

subject to the ITAR. 

* * * * * 

PART 774—[AMENDED] 

■ 9. 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 7, 2014, 79 

FR 46959 (August 11, 2014). 

Supplement No. 1 to Part 774— 

[Amended] 

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

Category 9—Aerospace and Propulsion, 

Export Control Classification Number 

(ECCN) 9A004 is amended by: 

■ a. Revising the License Requirements 

table; and 

■ b. Revising the Items paragraph in the 

List of Items Controlled section as 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Rules and Regulations 67059 

added May 13, 2014, at 79 FR 27439, 

effective November 10, 2014, by adding 

an items paragraph .y to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

9A004 Space Launch Vehicles and 

‘‘Spacecraft,’’ as Follows (See List of 

Items Controlled) 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

(see supp. No. 1 to part 738) 

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

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

* * * * * 

List of Items Controlled 

* * * * * 

Items: 

* * * * * 

y. Items that would otherwise be within 

the scope of ECCN 9A004.x but that have 

been identified in an interagency-cleared 

commodity classification (CCATS) pursuant 

to § 748.3(e) as warranting control in 

9A004.y. 

* * * * * 

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

Category 9—Aerospace and Propulsion, 

Export Control Classification Number 

(ECCN) 9A515 is amended by: 

■ a. Adding a sentence at the end of the 

Related Controls paragraph in the List of 

Items Controlled section as added May 

13, 2014, at 79 FR 27440, effective 

November 10, 2014; 

■ b. Revising the note to paragraph .a in 

the List of Items Controlled section as 

added May 13, 2014, at 79 FR 27440, 

effective November 10, 2014; and 

■ c. Adding paragraph .f in the Items 

paragraph in the List of Items Controlled 

section as added May 13, 2014, at 79 FR 

27440, effective November 10, 2014, to 

read as follows: 

9A515 ‘‘Spacecraft’’ and Related 

Commodities, as Follows (See List of 

Items Controlled) 

License Requirements 

* * * * * 

List of Items Controlled 

Related Controls: * * * See ECCN 9A610.g 

for pressure suits used for high altitude 

aircraft. 

* * * * * 

Items: 

* * * * * 

a. * * * 

Note: ECCN 9A515.a includes commercial 

communications satellites, remote sensing 

satellites, planetary rovers, planetary and 

interplanetary probes, and in-space habitats, 

not identified in USML Category XV(a). 

* * * * * 

f. Pressure suits (i.e., space suits) capable 

of operating at altitudes 55,000 feet above sea 

level. 

* * * * * 

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

Category 9—Aerospace and Propulsion, 

Product Group E. ‘‘Technology’’ is 

amended by: 

■ a. Redesignating the Note to Product 

Group E: ‘‘Technology’’ as Note 1 and 

revising newly redesignated Note 1; and 

■ b. Adding a Note 2 to Product Group 

E: ‘‘Technology’’ to read as follows: 

Category 9—Aerospace and Propulsion 

* * * * * 

E. ‘‘Technology’’ 

Note 1: ‘‘Development’’ or ‘‘production’’ 

‘‘technology’’ controlled by 9E001 to 9E003 

for gas turbine engines remains controlled 

when used for repair or overhaul. Excluded 

from 9E001 to 9E003 control are: technical 

data, drawings or documentation for 

maintenance activities directly associated 

with calibration, removal or replacement of 

damaged or unserviceable line replaceable 

units, including replacement of whole 

engines or engine modules. 

Note 2: USML Category XV(f) and ECCNs 

9E001, 9E002 and 9E515 do not 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 for purposes of 

Category 9 Product Group E. 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 for purposes of 

9A515, or to ECCNs 9E001 or 9E002 for 

purposes of 9A004. All classified technical 

data directly related to items controlled in 

USML Category XV or ECCNs 9A515, and 

defense services using the classified technical 

data remains subject to the ITAR. This note 

does not affect controls in USML XV(f), ECCN 

9D515, or ECCN 9E515 on software source 

code or commands that control a 

‘‘spacecraft,’’ payload, or associated 

subsystems for purposes of 9A515. This note 

also does not affect controls in ECCNs 9D001, 

9D002, 9E001, or 9E002 on software source 

code or commands that control a 

‘‘spacecraft,’’ payload, or associated 

subsystems for purposes of 9A004. 

* * * * * 

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

Category 9—Aerospace and Propulsion, 

Export Control Classification Number 

(ECCN) 9E515 is amended by removing 

Note 3 to 9E515 at the end of the Items 

paragraph in the List of Items Controlled 

section as added May 13, 2014, at 79 FR 

27442, effective November 10, 2014. 

Dated: November 5, 2014. 

Kevin J. Wolf, 

Assistant Secretary of Commerce for Export 

Administration. 

[FR Doc. 2014–26664 Filed 11–10–14; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9702] 

RIN 1545–BJ21 

Allocation of Basis in All Cash D 

Reorganizations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations regarding the determination 

of the basis of stock or securities in 

certain reorganizations where no stock 

or securities of the issuing corporation 

is issued and distributed in the 

transaction. These final regulations 

clarify that only a shareholder that owns 

actual shares in the issuing corporation 


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