[Federal Register Volume 65, Number 199 (Friday, October 13, 2000)]
[Rules and Regulations]
[Pages 60852-60857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26239]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 734, 738, 740, 742, 743, 744, 748, and 774

[Docket No. 000204027-0266-02]
RIN 0694-AC14


Revisions to License Exception CTP

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration (BXA) is amending the

[[Page 60853]]

Export Administration Regulations (EAR) by revising License Exception 
CTP to reflect continuing technological advancement in the computer 
industry. High Performance Computers (HPCs) with a composite 
theoretical performance (CTP) of up to 45,000 millions of theoretical 
operations per second (MTOPS) can be exported to Computer Tier 2 
countries under License Exception CTP, and HPCs with a CTP up to 28,000 
MTOPS can be exported Computer Tier 3 destinations under License 
Exception CTP. The civil-military distinction for computer Tier 3 end-
users and end-uses is removed. Effective February 26, 2001, this rule 
also raises the advance notification level for HPC exports to Computer 
Tier 3 countries to 28,000 MTOPS. As required by the National Defense 
Authorization Act of 1998 (NDAA), changes in the advance notification 
level for HPC exports to Tier 3 destinations are only effective 180 
days following the submission by the President of a report to Congress. 
The President sent the report to Congress on August 30, 2000. This rule 
moves Argentina from Computer Tier 2 to Computer Tier 1. This rule also 
moves Estonia from Computer Tier 3 to Computer Tier 2, effective 
December 28, 2000.

DATES: This rule is effective October 13, 2000.

FOR FURTHER INFORMATION CONTACT: James A. Lewis, Office of Strategic 
Trade and Foreign Policy Controls, Bureau of Export Administration, 
Telephone: (202) 482-0092.

SUPPLEMENTARY INFORMATION:   

Background

    On August 3, 2000, the President announced significant changes to 
export control policy for HPCs. The new policy continues the 
Administration's commitment, as announced on July 1, 1999, to review 
and update its HPC policy every six months to reflect rapid 
advancements in microprocessor technology, as well as identify any risk 
posed by HPC exports to certain end-users and countries. This policy 
strengthens America's high-tech competitiveness, while maintaining 
export controls to protect U.S. national security.
    The Administration, in consultation with the national security 
community and industry, has determined the following adjustments are 
warranted. Effective immediately, the upper License Exception CTP level 
for Computer Tier 2 countries is raised from 33,000 to 45,000 MTOPS and 
the upper License Exception CTP level for Computer Tier 3 countries is 
raised from 20,000 to 28,000 MTOPS. For purposes of License Exception 
CTP eligibility, this rule removes the distinction between military and 
civil end-users and end-uses in Computer Tier 3 countries. Effective 
February 26, 2001, this rule raises the advance notification level for 
HPC exports to Computer Tier 3 countries from 12,500 to 28,000 MTOPS. 
As required by the NDAA, changes in the advance notification level for 
HPC exports to Tier 3 destinations are only effective 180 days 
following the President's submission of a report to Congress. The 
President sent this report to Congress on August 30, 2000. This new 
level reflects the Administration's determination that widespread 
commercial availability of computers with performance capabilities up 
to 28,000 MTOPS makes that a realistic and enforceable control level.
    The Administration has decided to combine the Tier 3 civil and 
military licensing thresholds, as agencies have determined that the 
previous distinction, based on the judgement that there is a difference 
in the availability and ease of upgrade/assembly between four and eight 
processor systems, is no longer valid. Agencies now judge that this 
distinction no longer exists due to improvement in, and the world-wide 
availability of single processors, boards, chipsets, and operating 
systems. Removal of the distinction will allow agencies to focus export 
control resources on meaningful control levels.
    This rule removes Argentina from Computer Tier 2 and places it in 
Computer Tier 1, and removes Estonia from Computer Tier 3 and places it 
in Computer Tier 2. However, due to requirements in the 1998 NDAA, 
removing Estonia from Computer Tier 3 is not effective until 120 days 
after the Congress receives a report justifying such a removal. On 
August 30, 2000, the President informed the Congress of his intent to 
remove Estonia from Computer Tier 3; thus, Estonia will be moved to 
Computer Tier 2 effective December 28, 2000.
    Finally, this rule raises the CTP levels under License Exception 
TSR relating to items controlled under ECCNS 4D003 and 4E003 on the 
Commerce Control List to 33,000 MTOPS. This update reflects the rapid 
advances in HPC technology and aligns the level with our domestic 
policy and our multilateral Wassenaar Arrangement obligations. 
Requirements for reporting exports in Sec. 743.1(c)(2) remain 
consistent with our Wassenaar Arrangement obligations.
    Due to advancement in HPC and microprocessor technology, the United 
States will review these levels to determine if further adjustments are 
warranted. In particular, agencies will review control levels by 
December 2000 to determine if further changes are warranted; additional 
countries may also be moved between tiers.
    Although the Export Administration Act (EAA) expired on August 20, 
1994, the President invoked the International Emergency Economic Powers 
Act and continued in effect the EAR, and to the extent permitted by 
law, the provisions of the EAA, as amended, in Executive Order 12924 of 
August 19, 1994, as extended by the President's notices of August 15, 
1995 (60 FR 42767), August 14, 1996 (61 FR 42527), August 13, 1997 (62 
FR 43629), August 13, 1998 (63 FR 44121), August 10, 1999 (64 FR 
44101), and August 8, 2000 (65 FR 48347).

Rulemaking Requirements

    1. This final rule has been determined to be significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor be subject to a penalty for failure to 
comply with a collection of information subject to the requirements of 
the Paperwork Reduction Act unless that collection of information 
displays a current valid OMB Control Number. This regulation involves 
collections previously approved by the Office of Management and Budget 
under control numbers 0694-0088, ``Multi-Purpose Application,'' which 
carries a burden hour estimate of 45 minutes per manual submission and 
40 minutes per electronic submission. Miscellaneous and recordkeeping 
activities account for 12 minutes per submission. Information is also 
collected under OMB control number 0694-0107, ``National Defense 
Authorization Act,'' Advance Notifications and Post-Shipment 
Verification Reports, which carries a burden hour estimate of 15 
minutes per report. This rule also involves collections of information 
under OMB control number 0694-0073, ``Export Controls of High 
Performance Computers'' and OMB control number 0694-0093, ``Import 
Certificates and End-User Certificates''.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 13132.
    4. The provisions of the Administrative Procedure Act requiring 
notice of proposed rule making, the opportunity for public 
participation, and a delay in effective date, are inapplicable because 
this regulation involves a military or foreign affairs

[[Page 60854]]

function of the United States (see 5 U.S.C. 553(a)(1)). Further, no 
other law requires that a notice of proposed rule making and an 
opportunity for public comment be given for this rule. Because a notice 
of proposed rule making and opportunities for public comment are not 
required to be given for this rule by 5 U.S.C. 553, or by any other 
law, the analytical requirements of the Regulatory Flexibility Act, 5 
U.S.C. 601 et seq., are inapplicable.
    Therefore, this regulation is issued in final form. Although there 
is no formal comment period, public comments on this regulation are 
welcome on a continuing basis. Comments should be submitted to Office 
of Exporter Services, Bureau of Export Administration, Department of 
Commerce, P.O. Box 273, Washington, DC 20044.

List of Subjects

15 CFR Parts 734 and 738

    Administrative practice and procedure, Exports, Foreign trade.

15 CFR Parts 740, 743 and 748

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 742

    Exports, Foreign trade.

15 CFR Parts 744 and 774

    Exports, Foreign trade, Reporting and recordkeeping requirements.

    Accordingly, parts 734, 738, 740, 742, 743, 744, 748, and 774 of 
the Export Administration Regulations (15 CFR Parts 730-799) are 
amended as follows:
    1. The authority citation for 15 CFR part 734 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; 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; Notice of November 10, 1999, 64 FR 61767, 3 CFR, 1999 Comp., p. 
318; Notice of August 3, 2000 (65 FR 48347, August 8, 2000).


    2. The authority citation for 15 CFR Part 738 is revised 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); 18 U.S.C. 2510 et seq.; 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; 46 U.S.C. 
app. 466c; 50 U.S.C. app. 5; E.O. 12924, 59 FR 43437, 3 CFR, 1994 
Comp., p. 917; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; 
Notice of August 3, 2000 (65 FR 48347, August 8, 2000).


    3. The authority citation for 15 CFR Part 740 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 61 
FR 58767, 3 CFR, 1996 Comp., p. 228; Notice of August 3, 2000 (65 FR 
48347, August 8, 2000).


    4. The authority citation for 15 CFR Part 742 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 
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. 12924, 59 FR 43437, 3 CFR, 
1994 Comp., p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; Notice of 
November 10, 1999, 64 FR 61767, 3 CFR, 1999 Comp., p. 318; Notice of 
August 3, 2000 (65 FR 48347, August 8, 2000).


    5. The authority citation for 15 CFR part 743 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq; 50 U.S.C. 1701 et seq; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August 
3, 2000 (65 FR 48347, August 8, 2000).


    6. The authority citation for 15 CFR part 744 is revised 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; 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. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; Notice of November 10, 1999, 64 FR 
61767, 3 CFR, 1999 Comp., p. 318; Notice of August 3, 2000 (65 FR 
48347, August 8, 2000).

    7. The authority citation for 15 CFR part 748 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 61 
FR 58767, 3 CFR, 1996 Comp., p. 228; Notice of August 3, 2000 (65 FR 
48347, August 8, 2000).


    8. The authority citation for part 774 is revised 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); 18 U.S.C. 2510 et seq.; 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; 46 U.S.C. 
app. 466c; 50 U.S.C. app. 5; E.O. 12924, 59 FR 43437, 3 CFR, 1994 
Comp., p. 917; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; 
Notice of August 3, 2000 (65 FR 48347, August 8, 2000).

PART 734--[AMENDED]


Sec. 734.4  [Amended]

    9. Section 734.4 is amended by revising the phrase ``20,000 MTOPS'' 
in paragraph (a) to read ``28,000 MTOPS''.

PART 738--[AMENDED]

    10. Supplement No. 1 to Part 738 is amended by revising the phrase 
``greater than 33,000 MTOPS'' in the second footnote to read ``greater 
than 45,000 MTOPS''.

PART 740--[AMENDED]

    11. Section 740.7 is amended by revising the first sentence of 
paragraph (a) and paragraphs (b)(1), (c), (d)(1), (d)(2), (d)(4), 
(d)(5)(i), and (d)(5)(v) introductory text to read as follows:


Sec. 740.7  Computers (CTP).

    (a) Scope. License Exception CTP authorizes exports and reexports 
of computers and specially designed components therefor, exported or 
reexported separately or as part of a system for consumption in 
Computer Tier countries as provided by this section. * * *
    (b) Computer Tier 1--(1) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Argentina, Australia, Austria, Belgium, Brazil, Czech Republic, 
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, 
Italy, Japan, Liechtenstein, Luxembourg, Mexico, Monaco, Netherlands, 
New Zealand, Norway, Poland, Portugal, San Marino, Spain, Sweden, 
Switzerland, Turkey, the United Kingdom, and Vatican City.
* * * * *
    (c) Computer Tier 2--(1) Eligible countries. The countries that are 
eligible to receive exports under this License Exception include 
Antigua and Barbuda, Bahamas, Barbados, Bangladesh, Belize, Benin, 
Bhutan, Bolivia, Botswana, Brunei, Burkina Faso, Burma, Burundi, 
Cameroon, Cape Verde, Central African Republic, Chad, Chile, Colombia, 
Congo, Costa Rica, Cote d'Ivoire, Cyprus, Dominica, Dominican Republic, 
Ecuador, El Salvador, Equatorial Guinea, Eritrea, Ethiopia, Fiji, 
Gabon, Gambia (The), Ghana, Grenada, Guatemala, Guinea, Guinea-Bissau, 
Guyana, Haiti, Honduras, Hong Kong, Indonesia, Jamaica, Kenya, 
Kiribati, Korea (Republic of), Lesotho, Liberia, Madagascar, Malawi, 
Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritius, 
Micronesia (Federated States of), Mozambique, Namibia, Nauru,

[[Page 60855]]

Nepal, Nicaragua, Niger, Nigeria, Palau, Panama, Papua New Guinea, 
Paraguay, Peru, Philippines, Romania, Rwanda, St. Kitts & Nevis, St. 
Lucia, St. Vincent and Grenadines, Sao Tome & Principe, Senegal, 
Seychelles, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon 
Islands, Somalia, South Africa, Sri Lanka, Surinam, Swaziland, Taiwan, 
Tanzania, Togo, Tonga, Thailand, Trinidad and Tobago, Tuvalu, Uganda, 
Uruguay, Venezuela, Western Sahara, Western Samoa, Zaire, Zambia, and 
Zimbabwe. As of December 26, 2000, Estonia is a Computer Tier 2 
country.
    (2) Eligible computers. The computers eligible for License 
Exception CTP to Tier 2 destinations are those having a CTP greater 
than 6,500 MTOPS, but less than or equal to 45,000 MTOPS.
    (d) Computer Tier 3--(1) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, 
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina, Bulgaria, Cambodia, 
China (People's Republic of), Comoros, Croatia, Djibouti, Egypt, 
Estonia, Georgia, India, Israel, Jordan, Kazakhstan, Kosovo (Serbian 
province of), Kuwait, Kyrgyzstan, Laos, Latvia, Lebanon, Lithuania, 
Macau, Macedonia (The Former Yugoslav Republic of), Mauritania, 
Moldova, Mongolia, Montenegro, Morocco, Oman, Pakistan, Qatar, Russia, 
Saudi Arabia, Serbia, Tajikistan, Tunisia, Turkmenistan, Ukraine, 
United Arab Emirates, Uzbekistan, Vanuatu, Vietnam, and Yemen. Until 
December 26, 2000, Estonia is a Computer Tier 3 country. As of December 
26, 2000, Estonia is moved to Computer Tier 2.
    (2) Eligible computers. The computers eligible for License 
Exception CTP to Tier 3 destinations are those having a CTP greater 
than 6,500 MTOPS, but less than or equal to 28,000 MTOPS, subject to 
the restrictions in paragraph (d)(3) of this section.
* * * * *
    (4) Supporting documentation. Prior to February 26, 2001, exports 
of computers with a CTP greater that 12,500 MTOPS, as described by 
paragraph (d)(2) of this section, to the People's Republic of China 
must be supported by a PRC End-User Certificate, regardless of value. 
See Sec. 748.10(c)(3) of the EAR for information on obtaining the PRC 
End-User Certificate.) Exporters are required to obtain a PRC End-User 
Certificate before exporting computers regardless of value to the 
People's Republic of China. Exporters are also required to provide the 
PRC End-User Certificate Number to BXA as part of their post-shipment 
report (see paragraph (d)(5) of this section). When providing the PRC 
End-User Certificate Number to BXA, you must identify the transaction 
in the post shipment report to which that PRC End-User Certificate 
Number applies. The original PRC End-User Certificate shall be retained 
in the exporter's files in accordance with the recordkeeping provisions 
of Sec. 762.2 of the EAR.
    (5) NDAA notification--(i) General requirement. The National 
Defense Authorization Act (NDAA) of FY98 (Public Law 105-85, 111 Stat. 
1629) enacted on November 18, 1997 requires advance notification of 
certain exports and reexports of computers to Computer Tier 3 
countries. Prior to February 26, 2001, advance notification is required 
for all exports and reexports of computers with a CTP greater than 
12,500 but less than or equal to 28,000 MTOPS to Computer Tier 3 
destinations. For each such transaction destined to Computer Tier 3, 
prior to using License Exception CTP, you must first notify BXA by 
submitting a completed Multipurpose Application Form (BXA-748P). The 
Multipurpose Application Form must be completed including all 
information required for a license application according to the 
instructions described in Supplement No. 1 to part 748 of the EAR, with 
two exceptions. You (the applicant as listed in Block 14) shall in 
Block 5 (Type of Application) mark the box ``Other.'' This designator 
will permit BXA to route the NDAA notice into a special processing 
procedure. (Blocks 6 and 7, regarding support documentation, may be 
left blank.) BXA will not initiate the registration of an NDAA notice 
unless all information on the Multipurpose Application form is 
complete. Beginning on February 26, 2001, advance notification is not 
required for exports and reexport of computers with a CTP less than or 
equal to 28,000 MTOPS to Computer Tier 3 destinations. You must also 
provide a notice using this procedure prior to exporting or reexporting 
items that you know will be used to enhance beyond 12,500 MTOPS the CTP 
of a previously exported or reexported computer. Beginning on February 
26, 2001, you must obtain a license prior to exporting or reexporting 
items that you know will be used to enhance beyond 28,000 MTOPS the CTP 
of a previously exported or reexported computer.
* * * * *
    (v) Post-shipment verification. This section outlines special post-
shipment reporting requirements for exporters of certain computers to 
destinations in Computer Tier 3. Exporters must file post-shipment 
reports for computer exports, as well as exports of items used to 
enhance previously exported or reexported computers, according to the 
following schedule: for exports occurring on or after January 23, 2000, 
but on or before August 13, 2000, reports are required for computers 
with a CTP greater than 6,500 MTOPS; for exports occurring on or after 
August 14, 2000, but on or before February 25, 2001, reports are 
required for computers with a CTP greater than 12,500 MTOPS; and for 
exports occurring on or after February 26, 2001, reports are required 
for computers with a CTP greater than 28,000 MTOPS. Post-shipment 
reports must be submitted in accordance with the provisions of this 
paragraph (d)(5)(v), and all relevant records of such exports must be 
kept in accordance with part 762 of the EAR.
* * * * *


Sec. 740.11  [Amended]

    12. Section 740.11 is amended by revising the phrase ``33,000 
MTOPS'' in paragraphs (a)(2)(ii) and (a)(2)(iii) and in paragraph 
(c)(2)(i) to read ``45,000 MTOPS''.

    13. Supplement No. 1 to section 740.11 is amended by revising the 
phrase ``33,000 MTOPS'' in paragraphs (a)(1)(ii), (a)(1)(iii), 
(b)(1)(ii), and (b)(1)(iii) to read ``45,000 MTOPS''.

    14. Section 740.16 is amended by revising the phrase ``10,000 
MTOPS'' in paragraph (b)(1) to read ``45,000 MTOPS''.

PART 742--[AMENDED]

    15. Section 742.12 is amended by revising the phrase ``greater than 
33,000'' in paragraph (b)(2)(i) to read ``greater than 45,000''; and by 
revising paragraphs (b)(3)(i)(B), (b)(3)(i)(C), and (b)(3)(iv) 
introductory text to read as follows:


Sec. 742.12  High performance computers.

* * * * *
    (b) * * *
    (3) * * *
    (i) * * *
    (B) A license is required to export or reexport computers with a 
CTP greater than 28,000 MTOPS to a country in Computer Tier 3.
    (C) Prior to February 26, 2001, a license may be required to export 
or reexport computers with a CTP greater than 12,500 MTOPS to countries 
in Computer Tier 3 pursuant to the NDAA (see Sec. 740.7(d)(5) of the 
EAR). Beginning on February 26, 2001, a license is required to export 
or reexport computers with a CTP greater than

[[Page 60856]]

28,000 MTOPS to countries in Computer Tier 3.
* * * * *
    (iv) Post-shipment verification. This section outlines special 
post-shipment reporting requirements for exporters of certain computers 
to destinations in Computer Tier 3. Exporters must file post-shipment 
reports for computer exports, as well as exports of items used to 
enhance previously exported or reexported computers, according to the 
following schedule: for exports occurring on or after January 23, 2000, 
but on or before August 13, 2000, reports are required for computers 
with a CTP greater than 6,500 MTOPS; for exports occurring on or after 
August 14, 2000, but on or before February 25, 2001, reports are 
required for computers with a CTP greater than 12,500 MTOPS; and for 
exports occurring on or after February 26, 2001, reports are required 
for computers with a CTP greater than 28,000 MTOPS. Post-shipment 
reports must be submitted in accordance with the provisions of this 
paragraph (b)(3)(iv), and all relevant records of such exports must be 
kept in accordance with part 762 of the EAR.
* * * * *

PART 743--[AMENDED]


Sec. 743.1  [Amended]

    16. Sec. 743.1 is amended by revising the phrase ``provisions of 
Sec. 740.7(d)(4)(v)'' to read ``provisions of Sec. 740.7(d)(5)(v)'' in 
the Note to paragraph (c)(2).

PART 744--[AMENDED]

    17. Supplement No. 4 to part 744 is amended by revising the phrase 
``For computers above the Tier 3 military level described in 
Sec. 742.12(b)(3)(i)(B)'' in the License requirement column for the 
Israeli entity ``Ben Gurion University, Israel'' to read ``For 
computers above the Tier 3 level described in 
Sec. 742.12(b)(3)(i)(B)''.

PART 748--[AMENDED]

    18. Section 748.10 is amended by revising paragraph (b)(3) as 
follows:


Sec. 748.10  Import and End-User Certificates.

* * * * *
    (b) * * *
    (3) Your transaction involves an export to the People's Republic of 
China of a computer, you must obtain a PRC End-User Certificate, 
regardless of dollar value, as follows:
    (i) For license applications submitted on or before February 25, 
2001, a PRC End-User Certificate is required for computers with a 
Composite Theoretical Performance (CTP) greater than 12,500 Million 
Operations Per Second (MTOPS) and for license applications submitted on 
or after February 26, 2001, a PRC End-User Certificate is required for 
computers with a CTP greater than 28,000 MTOPS;
    (ii) For exports under License Exception CTP occurring on or before 
February 25, 2001, a PRC End-User Certificate is required for computers 
with a CTP of greater than 12,500 MTOPS.
* * * * *

PART 774--[AMENDED]

    19. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4--Computers is amended by revising the ``License 
Requirements'' section of Export Control Classification Numbers (ECCNs) 
of 4A001 and 4A002, the ``License Exceptions'' section of ECCN 4A003, 
and the ``License Requirements'' and ``License Exceptions'' sections of 
ECCNs 4D001 and 4E001, to read as follows:

4A001  Electronic computers and related equipment, and ``electronic 
assemblies'' and specially designed components therefor. 

License Requirements

    Reason for Control: NS, MT, AT, NP, XP.

------------------------------------------------------------------------
                Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 2
MT applies to items in 4A001.a when the    MT Column 1
 parameters in 4A101 are met or exceeded.
AT applies to entire entry...............  AT Column 1
------------------------------------------------------------------------

    NP applies to electronic computers with a CTP greater than 6,500 
Mtops, unless a License Exception is available. See Sec. 742.3(b) of 
the EAR for information on applicable licensing review policies.
    XP applies to electronic computers with a CTP greater than 6,500 
Mtops, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use. See Sec. 742.12 of 
the EAR for additional information.

    License Requirement Notes: See Sec. 743.1 of the EAR for 
reporting requirements for exports under License Exceptions.
* * * * *
4A002  ``Hybrid computers'' and ``electronic assemblies'' and specially 
designed components therefor. 

License Requirements

    Reason for Control: NS, MT, AT, NP, XP.

------------------------------------------------------------------------
                Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 2
MT applies to hybrid computers combined    MT Column 1
 with specially designed ``software'',
 for modeling, simulation, or design
 integration of complete rocket systems
 and unmanned air vehicle systems that
 are usable in systems controlled for MT
 reasons.
AT applies to entire entry...............  AT Column 1
------------------------------------------------------------------------

    NP applies to hybrid computers with a CTP greater than 6,500 Mtops, 
unless a License Exception is available. See Sec. 742.3(b) of the EAR 
for information on applicable licensing review policies.
    XP applies to hybrid computers with a CTP greater than 6,500 Mtops, 
unless a License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.
* * * * *
4A003  ``Digital computers'', ``electronic assemblies'', and related 
equipment therefor, and specially designed components therefor. 
* * * * *

License Exceptions

LVS: $5000; N/A for MT and ``digital'' computers controlled by 4A003.b 
and having a CTP exceeding 12,500 MTOPS; or ``electronic assemblies'' 
controlled by 4A003.c and capable of enhancing performance by 
aggregation of ``computing elements'' so that the CTP of the 
aggregation exceeds 12,500 MTOPS.
GBS: Yes, for 4A003.d, .e, and .g and specially designed components 
therefor, exported separately or as part of a system.
CTP: Yes, for computers controlled by 4A003.a, .b and .c, to the 
exclusion of other technical parameters, with the exception of 
parameters specified as controlled for Missile Technology (MT) concerns 
and 4A003.e (equipment performing analog-to-digital or digital-to-
analog conversions exceeding the limits of 3A001.a.5.a). See Sec. 740.7 
of the EAR.
CIV: Yes, for 4A003.d (having a 3-D vector rate less than or equal to 
100 M vectors/sec), .e, and .g.
* * * * *
4D001  ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of

[[Page 60857]]

equipment or ``software'' controlled by 4A001 to 4A004, or 4D (except 
4D980, 4D993 or 4D994). 

License Requirements

    Reason for Control: NS, MT, CC, AT, NP, XP.

------------------------------------------------------------------------
                Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``software'' for             NS Column 1
 commodities or software controlled by
 4A001 to 4A004, 4D001 to 4D003.
MT applies to ``software'' for equipment   MT Column 1
 controlled by 4A001 to 4A003 for MT
 reasons.
CC applies to ``software'' for             CC Column 1
 computerized finger-print equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry...............  AT Column 1
------------------------------------------------------------------------

    NP applies to ``software'' for computers with a CTP greater than 
6,500 Mtops, unless a License Exception is available. See Sec. 742.3(b) 
of the EAR for information on applicable licensing review policies.
    XP applies to ``software'' for computers with a CTP greater than 
6,500 Mtops, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use. See Sec. 742.12 of 
the EAR for additional information.

    License Requirement Notes: See Sec. 743.1 of the EAR for 
reporting requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except for the following:
(1) ``Software'' controlled for MT reasons;
(2) ``Software'' for equipment or ``software'' requiring a license; or
(3) Exports and reexports to destinations outside of Austria, Belgium, 
Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, 
Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or the 
United Kingdom of ``software'' specially designed for the 
``development'' or ``production'' of equipment controlled as follows:
(a) ``Digital'' computers controlled by 4A003.b and having a CTP 
exceeding 33,000 MTOPS; or
(b) ``Electronic assemblies'' controlled by 4A003.c and capable of 
enhancing performance by aggregation of ``computing elements'' so that 
the CTP of the aggregation exceeds 33,000 MTOPS.
* * * * *
4E001 ``Technology'' according to the General Technology Note, for the 
``development'', ``production'' or ``use'' of equipment or ``software'' 
controlled by 4A (except 4A980, 4A993 or 4A994) or 4D (except 4D980, 
4D993, 4D994).

License Requirements

    Reason for Control: NS, MT, CC, AT, NP, XP.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for         NS Column 1
 commodities or software controlled by
 4A001 to 4A004, 4D001 to 4D003.
MT applies to ``technology'' for items   MT Column 1
 controlled by 4A001 to 4A003, 4A101,
 4D001, 4D102 or 4D002 for MT reasons.
CC applies to ``technology'' for         CC Column 1
 computerized fingerprint equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

    NP applies to ``technology'' for computers with a CTP greater than 
6,500 Mtops, unless a License Exception is available. See Sec. 742.3(b) 
of the EAR for information on applicable licensing review policies.
    XP applies to ``technology'' for computers with a CTP greater than 
6,500 Mtops, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use. See Sec. 742.12 of 
the EAR for additional information.

    License Requirement Notes: See Sec. 743.1 of the EAR for 
reporting requirements for exports under License Exceptions.

License Exceptions

CIV: N/A.
TSR: Yes for ``technology'' directly related for hardware exported 
under a License Exception.
N/A for the following:
    (1) ``Technology'' controlled for MT reasons; or
    (2) Exports and reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``technology'' for the ``development'' or 
``production'' of the following items:
    (a) ``Digital'' computers controlled by 4A003.b and having a CTP 
exceeding 33,000 MTOPS;
    (b) ``Electronic assemblies'' controlled by 4A003.c and capable of 
enhancing performance by aggregation of ``computing elements'' so that 
the CTP of the aggregation exceeds 33,000 MTOPS; or
    (c) ``Software'' specially designed for the ``development'' or 
``production'' of equipment listed in paragraphs (a) or (b) above.
* * * * *

    Dated: October 5, 2000.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 00-26239 Filed 10-12-00; 8:45 am]
BILLING CODE 3510-33-P