60852 Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Rules and Regulations

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

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

§ 39.13 [Amended]

2. FAA amends Section 39.13 by

adding a new AD to read as follows:

2000–20–13 British Aerospace:

Amendment 39–11924; Docket No.

2000–CE–12–AD.

(a) What airplanes are affected by this AD?

This AD affects Models HP137 Mk1,

Jetstream Series 200 airplanes, and Jetstream

Models 3101 and 3201 airplanes, all serial

numbers excluding 936 and 940, certificated

in any category.

(b) Who must comply with this AD?

Anyone who wishes to operate any of the

above airplanes on the U.S. Register must

comply with this AD.

(c) What problem does this AD address?

The actions specified by this AD are intended

to detect, correct, and prevent further

cracking in the rudder quadrant structure

caused by incorrectly installed D-washers.

Cracks in this structure could result in loss

of rudder control with consequent airplane

control problems.

(d) What actions must I accomplish to

address this problem? To address this

problem, you must accomplish the following:

Actions Compliance times Procedures

(1) Inspect the upper edge member radii and

bottom diaphragm radii adjacent to the rudder artificial feel assembly attachments at the

rudder quadrant support for cracks and inspect the D-washers to assure correct installation.

Within 90 calendar days after November 27,

2000 (the effective date of this AD).

Accomplish in accordance with the ‘‘ACCOMPLISHMENT INSTRUCTIONS: Part 1—Inspection’’ section of British Aerospace Mandatory Alert Service Bulletin 53–JA–990842,

Revision 1, dated February 21, 2000.

(2) If cracks are found in the area of the upper

edge member radii on the rudder quadrant

support structure, replace this component by

incorporating material Kit No. ‘53–JA–

990842PT2’.

Before further flight after the inspection where

the cracked part was detected.

Accomplish in accordance with the ‘‘ACCOMPLISHMENT INSTRUCTIONS: Part 2—Replacement of the right upper edge member

if cracks are found at Part 1’’ section of

British Aerospace Mandatory Alert Service

Bulletin 53–JA–990842, Revision 1, dated

February 21, 2000.

(3) If cracks are found in the area of the bottom

diaphragm on the rudder quadrant support

structure, replace this component by incorporating material Kit No. ‘53–JA–990842PT3’.

Before further flight after the inspection where

the cracked part was detected.

Accomplish in accordance with the ‘‘ACCOMPLISHMENT INSTRUCTIONS: Part 3—Replacement of the bottom diaphragm of the

rudder quadrant support structure’’ section

of British Aerospace Mandatory Alert Service Bulletin 53–JA–990842, Revision 1,

dated February 21, 2000.

(4) Remove any incorrectly installed D-washer

and replace with a new D-washer. This replacement is accomplished by incorporating

material Kit No. ‘53–JA–990842PT4’.

Before further flight after the inspection where

the incorrect installation was detected.

Accomplish in accordance with the ‘‘ACCOMPLISHMENT INSTRUCTIONS: Part 4—Removal and replacement of D-washers’’ section of British Aerospace Mandatory Alert

Service bulletin 53–JA–990842, Revision 1,

dated February 21, 2000.

(e) Can I comply with this AD in any other

way? You may use an alternative method of

compliance or adjust the compliance time if:

(1) Your alternative method of compliance

provides an equivalent level of safety; and

(2) The Manager, Small Airplane

Directorate approves your alternative. Submit

your request through an FAA Principal

Maintenance Inspector, who may add

comments and then send it to the Manager,

Small Airplane Directorate.

Note 1: This AD applies to each airplane

identified in paragraph (a) of this AD,

regardless of whether it has been modified,

altered, or repaired in the area subject to the

requirements of this AD. For airplanes that

have been modified, altered, or repaired so

that the performance of the requirements of

this AD is affected, the owner/operator must

request approval for an alternative method of

compliance in accordance with paragraph (e)

of this AD. The request should include an

assessment of the effect of the modification,

alteration, or repair on the unsafe condition

addressed by this AD; and, if you have not

eliminated the unsafe condition, specific

actions you propose to address it.

(f) Where can I get information about any

already-approved alternative methods of

compliance? Contact S.M. Nagarajan,

Aerospace Engineer, FAA, Small Airplane

Directorate, 901 Locust, Room 301, Kansas

City, Missouri 64106; telephone: (816) 329–

4145; facsimile: (816) 329–4090.

(g) What if I need to fly the airplane to

another location to comply with this AD? The

FAA can issue a special flight permit under

sections 21.197 and 21.199 of the Federal

Aviation Regulations (14 CFR 21.197 and

21.199) to operate your airplane to a location

where you can accomplish the requirements

of this AD.

(h) Are any service bulletins incorporated

into this AD by reference? Actions required

by this AD must be done in accordance with

British Aerospace Mandatory Alert Service

Bulletin 53–JA–990842, Revision 1, dated

February 21, 2000. The Director of the

Federal Register approved this incorporation

by reference under 5 U.S.C. 552(a) and 1 CFR

part 51. You can get copies from British

Aerospace Regional Aircraft, Prestwick

International Airport, Ayrshire, KA9 2RW,

Scotland. You can look at copies at the FAA,

Central Region, Office of the Regional

Counsel, 901 Locust, Room 506, Kansas City,

Missouri, or at the Office of the Federal

Register, 800 North Capitol Street, NW, suite

700, Washington, DC 20001.

(i) When does this amendment become

effective? This amendment becomes effective

on November 27, 2000.

Note 2: The subject of this AD is addressed

in British AD Number 006–12–99, not dated.

Issued in Kansas City, Missouri, on

September 28, 2000.

Michael Gallagher,

Manager, Small Airplane Directorate, Aircraft

Certification Service.

[FR Doc. 00–25554 Filed 10–12–00; 8:45 am]

BILLING CODE 4910–13–P

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.

SUMMARY: The Bureau of Export

Administration (BXA) is amending the

Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Rules and Regulations 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 civilmilitary 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 endusers 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

§ 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

60854 Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Rules and Regulations

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]

§ 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:

§ 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,

Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Rules and Regulations 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

§ 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 EndUser Certificate Number to BXA, you

must identify the transaction in the post

shipment report to which that PRC EndUser Certificate Number applies. The

original PRC End-User Certificate shall

be retained in the exporter’s files in

accordance with the recordkeeping

provisions of § 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.

* * * * *

§ 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:

§ 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 § 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

60856 Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Rules and Regulations

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]

§ 743.1 [Amended]

16. § 743.1 is amended by revising the

phrase ‘‘provisions of § 740.7(d)(4)(v)’’

to read ‘‘provisions of § 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 § 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 § 742.12(b)(3)(i)(B)’’.

PART 748—[AMENDED]

18. Section 748.10 is amended by

revising paragraph (b)(3) as follows:

§ 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 parameters in 4A101 are met or

exceeded.

MT Column

1

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 § 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 § 742.12 of the EAR for additional

information.

License Requirement Notes: See § 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 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.

MT Column

1

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

§ 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 § 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-todigital or digital-to-analog

conversions exceeding the limits of

3A001.a.5.a). See § 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

Federal Register / Vol. 65, No. 199 / Friday, October 13, 2000 / Rules and Regulations 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

commodities or software

controlled by 4A001 to

4A004, 4D001 to 4D003.

NS Column 1

MT applies to ‘‘software’’ for

equipment controlled by

4A001 to 4A003 for MT reasons.

MT Column

1

CC applies to ‘‘software’’ for

computerized finger-print

equipment controlled by

4A003 for CC reasons.

CC Column

1

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 § 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 enduse. See § 742.12 of the EAR for

additional information.

License Requirement Notes: See § 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 commodities or software controlled by

4A001 to 4A004, 4D001

to 4D003.

NS Column 1

MT applies to ‘‘technology’’

for items controlled by

4A001 to 4A003, 4A101,

4D001, 4D102 or 4D002

for MT reasons.

MT Column 1

CC applies to ‘‘technology’’

for computerized fingerprint equipment controlled by 4A003 for CC

reasons.

CC Column 1

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 § 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 enduse. See § 742.12 of the EAR for

additional information.

License Requirement Notes: See § 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

FEDERAL TRADE COMMISSION

16 CFR Parts 1 and 311

Federal Civil Penalties Inflation

Adjustment Act of 1990; and Debt

Collection Improvement Act of 1996

AGENCY: Federal Trade Commission

(FTC).

ACTION: Final rule amendments.

SUMMARY: These rule amendments

adjust the dollar amounts of civil

penalties under statutes within the

FTC’s jurisdiction to reflect inflation

that has occurred since the Commission

last made such inflation adjustments in

1996.

EFFECTIVE DATE: November 20, 2000.

FOR FURTHER INFORMATION CONTACT: Alex

Tang, Attorney, Office of General

Counsel, FTC, 600 Pennsylvania

Avenue, NW, Washington, DC 20580,

(202) 326–2447, atang@ftc.gov.

SUPPLEMENTARY INFORMATION: The

Federal Civil Penalties Inflation

Adjustment Act of 1990 (FCPIAA), as

amended by the Debt Collection

Improvement Act of 1996 (DCIA), 28

U.S.C. 2461 note, requires each federal

agency to issue regulations adjusting

civil monetary penalty amounts within

its jurisdiction for inflation at least once

every four years, using the June

consumer price index (CPI) published

by the United States Department of

Labor, Bureau of Labor Statistics. The

last time the Commission adjusted its

civil penalties was in 1996, when it

published the initial adjustments

required by the Act. See 61 FR 54548

(Oct. 21, 1996), 55840 (Oct. 29, 1996)

(correction); Commission Rule 1.98, 16

CFR 1.98 (inflation adjustments of civil

monetary penalty amounts).

The Commission is now amending

Rule 1.98 to reflect the 10.02% increase

in the relevant CPI since 1996 (i.e., from

156.7 in June 1996 to 172.4 in June

2000), with the amount of each increase

being rounded in accordance with