Federal Register / Vol. 75, No. 123 / Monday, June 28, 2010 / Rules and Regulations 36511 

no longer be guaranteed in full under the 

Transaction Account Guarantee Program, but 

will be insured up to $250,000 under the 

FDIC’s general deposit insurance rules. 

For Non-Participating Institutions 

[Institution Name] has chosen not to 

participate in the FDIC’s Transaction 

Account Guarantee Program. Customers of 

[Institution Name] with noninterest-bearing 

transaction accounts will continue to be 

insured for up to $250,000 under the FDIC’s 

general deposit insurance rules. 

(ii) If the institution uses sweep 

arrangements or takes other actions that 

result in funds being transferred or 

reclassified to an account that is not 

guaranteed under the transaction 

account guarantee program, for 

example, an interest-bearing account, 

the institution must disclose those 

actions to the affected customers and 

clearly advise them, in writing, that 

such actions will void the FDIC’s 

guarantee with respect to the swept, 

transferred, or reclassified funds. 

* * * * * 

Dated at Washington, DC, this 22nd day of 

June, 2010. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2010–15497 Filed 6–25–10; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 734, 738, 740, 742, 772, 

and 774 

[Docket No. 090126064–0122–01] 

RIN 0694–AE56 

Revisions to the Export Administration 

Regulations Based Upon a Systematic 

Review of the Commerce Control List: 

Additional Changes 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This rule amends the Export 

Administration Regulations (EAR) to 

make revisions to the EAR as a result of 

a systematic review of the Commerce 

Control List (CCL) that was conducted 

by the Bureau of Industry and Security 

(BIS). This rule is the third phase of the 

regulatory implementation of the results 

of a review of the CCL that was 

conducted by BIS starting in 2007. The 

BIS CCL review benefited from input 

received from BIS’s Technical Advisory 

Committees (TACs) and comments that 

were received from the interested public 

in response to the publication of a BIS 

notice of inquiry on July 17, 2007. 

The revisions in this rule include 

clarifications to existing controls; 

eliminating redundant or outdated 

controls; and establishing more focused 

and rationalized controls. This rule also 

makes CCL related changes to other 

parts of the EAR, including CCL related 

definitions and license exceptions. 

DATES: This rule is effective: June 28, 

2010. Although there is no formal 

comment period, public comments on 

this regulation are welcome on a 

continuing basis. 

ADDRESSES: You may submit comments, 

identified by RIN 0694–AE56, by any of 

the following methods: 

E-mail: publiccomments@bis.doc.gov. 

Include ‘‘RIN 0694–AE56’’ in the subject 

line of the message. 

Fax: (202) 482–3355. Please alert the 

Regulatory Policy Division, by calling 

(202) 482–2440, if you are faxing 

comments. 

Mail or Hand Delivery/Courier: 

Timothy Mooney, U.S. Department of 

Commerce, Bureau of Industry and 

Security, Regulatory Policy Division, 

14th St. & Pennsylvania Avenue, NW., 

Room 2705, Washington, DC 20230, 

Attn: RIN 0694–AE56. 

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 e-mail to 

Jasmeet_K._Seehra@omb.eop.gov, or by 

fax to (202) 395–7285; and to the 

Regulatory Policy Division, Bureau of 

Industry and Security, Department of 

Commerce, 14th St. & Pennsylvania 

Avenue, NW., Room 2705, Washington, 

DC 20230. Comments on this collection 

of information should be submitted 

separately from comments on the final 

rule (i.e., RIN 0694–AE56)—all 

comments on the latter should be 

submitted by one of the three methods 

outlined above. 

FOR FURTHER INFORMATION CONTACT: 

Timothy Mooney, Office of Exporter 

Services, Bureau of Industry and 

Security, U.S. Department of Commerce; 

by telephone: (202) 482–2440; or by fax: 

(202) 482–3355. 

SUPPLEMENTARY INFORMATION: 

Background 

This rule amends the EAR to make 

various revisions as a result of a 

systematic review of the Commerce 

Control List (CCL) that was conducted 

by BIS. This rule is the third phase of 

the regulatory implementation of the 

results of that systematic review of the 

CCL that was conducted by BIS 

beginning in 2007. The CCL review 

benefited from input received from 

BIS’s Technical Advisory Committees 

(TACs) and public comments received 

in response to a notice of inquiry (July 

17, 2007, 72 FR 39052). 

On April 18, 2008, BIS published the 

first phase of the regulatory 

implementation of the CCL review in a 

rule titled, ‘‘Technical Corrections to the 

Export Administration Regulations 

based upon a Systematic Review of the 

CCL’’ (73 FR 21035). The first CCL 

review rule made needed technical 

corrections and clarifications to the 

CCL. The second CCL review rule made 

substantive revisions to the EAR, 

including the CCL (October 6, 2008, 73 

FR 58033). 

The revisions to the CCL in this third 

CCL review rule are divided into three 

types of revisions: (I) Clarifications to 

Existing Controls; (II) Eliminating 

Redundant or Outdated Controls; and 

(III) Establishing More Focused and 

Rationalized Controls. The changes in 

this third CCL review rule are typically 

additional changes from the 2007 

review that required further U.S. 

Government review and/or interagency 

discussions before they could be 

implemented. This rule also makes 

certain revisions to other parts of the 

EAR related to the CCL that were 

recommended during the 2007 CCL 

review. 

As a part of the implementation phase 

of the CCL review, BIS has also taken 

other non-regulatory actions to improve 

the public’s understanding of the CCL. 

These actions have involved publishing 

certain advisory opinions and creating 

new web guidance to provide greater 

clarity to exporters and reexporters 

regarding existing provisions of the 

CCL. BIS has also created a new process 

whereby it has stated its intention to 

conduct similar types of systematic 

reviews of the CCL in the future in order 

to continuously improve the CCL. 

This rule makes the following 

revisions to the Export Administration 

Regulations (EAR): 

In § 734.4(b)(1), this rule adds 

paragraph (a)(9) of ECCN 5A002 to the 

list of 5A002 classified commodities 

that are subject to the special de 

minimis requirements for certain 

encryption items. ECCN 5A002.a.9 is 

controlled for Encryption Items (EI) 

reasons, so it should be included in 

paragraph (b)(1) because that paragraph 

is intended to include all of the ‘‘items’’ 

paragraphs of 5A002 that are controlled 

for EI reasons. 

In § 734.4 (De minimis U.S. content) 

paragraph (a)(4) and § 742.14 

(Significant items: hot section 

technology for the development, 


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36512 Federal Register / Vol. 75, No. 123 / Monday, June 28, 2010 / Rules and Regulations 

production or overhaul of commercial 

aircraft engines, components and 

systems) paragraph (a), this rule updates 

the provisions in these two sections that 

apply to ‘‘items’’ controlled for 

Significant Items (SI) reasons in ECCN 

9E003 to conform these two sections to 

the intended paragraphs of ECCN 9E003 

(i.e., 9E003.a.1 through a.10 and h). 

These changes are needed because when 

9E003 was revised the related 

provisions in §§ 734.4(a)(4) and 

742.14(a) were not updated (July 12, 

2000, 65 FR 43130). This rule updates 

those provisions to conform to the 

updates made to the items controlled 

under 9E003. This rule also makes 

changes to the SI reason for control 

under 9E003 to conform that reason for 

control to the SI items controlled under 

that ECCN entry, as described below. 

In § 740.7 (Computers (APP)) under 

paragraph (b)(2)(i)(Computers and 

software), this rule removes and 

reserves this paragraph because the 

restrictions refer to a supplement of the 

EAR that is currently reserved. 

Supplement No. 3 to part 742 was 

removed and reserved in the EAR on 

April 24, 2006 (71 FR 20876). Paragraph 

(b)(2)(i) is also reserved because 

restricting physical access to areas 

housing the computer is no longer 

necessary in protecting U.S. export 

control interests in a distributed 

computing environment. 

Also in § 740.7, this rule revises the 

Weighted TeraFLOPS (WT) level in 

paragraphs (c)(3)(ii) from 0.1 WT to 0.5 

WT. This change is being made to 

address advances in technology levels 

that justify an adjustment for what level 

of ‘‘development’’ and ‘‘production’’ 

technology and source code should be 

authorized under these provisions of 

License Exception APP. 

In § 772.1 (Definitions of terms as 

used in the Export Administration 

Regulations (EAR)), this rule revises the 

definition of ‘‘reasons for control’’ to 

conform that definition to the reasons 

for control listed in § 738.2(d)(2)(i)(A) of 

the EAR. Specifically, this rule removes 

the control ‘‘High Performance 

Computers (XP)’’ because that control is 

no longer in the EAR, and adds five 

reasons for control that were in the EAR 

but were not included in the ‘‘reasons 

for control’’ definition prior to this rule 

being published. Specifically, this rule 

adds ‘‘Chemical Weapons Convention 

(CW)’’, ‘‘Encryption Items (EI)’’, 

‘‘Firearms Convention (FC)’’, ‘‘Significant 

Items (SI)’’, and ‘‘Surreptitious Listening 

(SL)’’ to the ‘‘reasons for control’’ 

definition. 

This rule makes various substantive 

revisions to the CCL, divided below into 

three types of revisions: (I) 

Clarifications to Existing Controls; (II) 

Eliminating Redundant or Outdated 

Controls; and (III) Establishing More 

Focused and Rationalized Controls. 

I. Clarifications to Existing Controls 

1. Revisions to the ‘‘headings’’ of 

existing CCL entries. 

This rule makes revisions to the 

headings of three (3) CCL entries: 0E018, 

4E992 and 4E993 to clarify the items 

controlled under those CCL entries. 

ECCN 0E018 is amended by removing 

the phrase ‘‘0A018.a through 0A018.c’’ 

and replacing that with ‘‘0A018’’ for 

consistency with the International 

Munitions List (IML) 22. 

ECCNs 4E992 and 4E993 are amended 

by revising the headings to conform to 

the removal of ECCNs 4B994 and 4C994 

from the CCL. The changes in the 

headings of ECCNs 4E992 and 4E993 

remove references to ‘‘technology’’ 

applicable to the ECCNs 4B994 and 

4C994 that are removed from the CCL 

with this rule, as described in the next 

two paragraphs. The removal of ECCNs 

4B994 and 4C994 are described below 

under the discussion on ‘‘Eliminating 

Redundant or Outdated Controls.’’ 

ECCN 4E992 is amended by revising 

the heading to remove the reference to 

4B994 and materials controlled by 

4C994. The heading will be revised to 

specify the technology controlled under 

this ECCN entry is ‘‘technology’’ other 

than that controlled in 4E001 for the 

‘‘development,’’ ‘‘production,’’ or ‘‘use’’ of 

equipment controlled by 4A994, or 

‘‘software’’ controlled by 4D993 or 

4D994. 

ECCN 4E993 is amended by revising 

the heading to remove the reference to 

technology required for the 

development or production of graphic 

accelerators and magnetic disk drives. 

The heading is being revised to specify 

the technology controlled under this 

ECCN entry is ‘‘technology’’ for the 

‘‘development’’ or ‘‘production’’ of 

equipment for ‘‘multi-data stream 

processing.’’ As described below, this 

rule also revises the ‘‘items’’ paragraph 

in the List of Items of controlled to 

conform to this change to the heading. 

2. Revisions to ‘‘Items’’ paragraphs in 

CCL entries. This rule makes revisions 

to the ‘‘Items’’ paragraphs under two (2) 

CCL entries, 4E993 and 9A991, to 

provide greater clarity regarding the 

items controlled under those CCL 

entries. Specifically, these revisions 

include the following: 

ECCN 4E993 is amended by removing 

the ‘‘items’’ paragraph (a), (b) and (c) and 

replacing it with a sentence stating, 

‘‘The list of items controlled is 

contained in the ECCN heading.’’ As 

described above, the technology 

described in paragraphs (a) and (c) is 

being removed from this entry, and the 

only items that this entry will now 

control are listed in the entry’s heading. 

ECCN 9A991 is amended by making 

two clarifications. First, this rule revises 

‘‘items’’ paragraph (b) to remove the 

word ‘‘and’’ because this word is not 

needed. Second, this rule amends the 

Note to paragraph (c) of the ‘‘items’’ 

paragraph, to specify that for aero gas 

turbine engines that are destined for use 

in civil ‘‘aircraft’’ and have been in use 

in bona fide civil ‘‘aircraft’’ for more than 

eight years, such engines are controlled 

under 9A991.d. This is not a change in 

the control parameter, but rather a 

clarification regarding the original 

intent of that Note to paragraph (c). 

3. Clarifications to ‘‘Items’’ paragraphs 

to conform to multilateral regimes. This 

action revises the ‘‘items’’ paragraphs in 

two (2) CCL entries, 8A018 and 9A018, 

to clarify what items are controlled 

under those entries and to better 

conform those entries to the language 

used in multilateral control lists, such 

as the IML. 

ECCN 8A018 is amended by revising 

paragraphs (b)(1), (b)(2), (b)(3), (b)(4) 

and (b)(5) of the ‘‘Items’’ paragraph, to 

conform to IML 9.b.3, 9.d and b.1–4, 

respectively. Specifically, under 

paragraph (b)(1), this rule adds the 

phrase ‘‘and specially designed 

components therefor’’ to conform to IML 

9.b.1. Under paragraph (b)(2), this rule 

adds the phrase ‘‘and specially designed 

components therefor’’ to conform to IML 

9.b.2. Under paragraph (b)(3), this rule 

revises the ‘‘items’’ paragraph to specify 

that the commodities controlled under 

this paragraph are ‘‘nonmagnetic diesel 

engines, 50 hp and over, specially 

designed for military purposes with 

nonmagnetic content in excess of 75 

percent of total mass and specially 

designed components therefor.’’ This 

change is being made to conform to IML 

9.b.2. Paragraph (b)(5) is removed from 

the CCL entry because the components, 

parts, accessories, and attachments for 

the above are now controlled under 

paragraphs (b)(1)–(b)(4) with the 

publication of this rule. This change is 

being made to conform to the IML 9 

portion that was moved to (b)(1)–(b)(4) 

of the ‘‘items’’ paragraph of this CCL 

entry. 

ECCN 9A018 is amended by revising 

paragraphs (c) and (d) of the ‘‘items’’ 

paragraphs to clarify the items 

controlled under this CCL entry. 

Specifically, under paragraph (c) this 

rule adds quotes around the term 

‘‘aircraft’’ and removes the phrase ‘‘and 

helicopters,’’ to conform to IML 10.f. 

Under paragraph (d), this rule adds 

quotes around the term ‘‘aircraft’’ and 


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Federal Register / Vol. 75, No. 123 / Monday, June 28, 2010 / Rules and Regulations 36513 

removes the term ‘‘helicopter’’ to 

conform to IML 10.f. This rule also 

removes the reference to helicopters 

under paragraphs (c) and (d) because the 

definition of ‘‘aircraft’’ includes 

helicopters, so helicopters do not need 

to be specifically identified in the 

control parameter. This rule also 

removes ‘‘parts, attachments’’ under 

paragraph (f) to conform to IML 14. 

4. Other assorted clarifications to 

existing controls. 

ECCN 4A003 is amended by making 

a correction in the Anti-Terrorism (AT) 

control in the License Requirements 

section of this ECCN. This correction is 

made to conform to a change made on 

October 6, 2008 (73 FR 58040) in the 

Adjusted Peak Performance (APP) level 

in ECCN 4A994. To conform to the 

October 2008 change, this rule updates 

the AT control cross reference in the 

License Requirements section of ECCN 

4A003 that refers to the ‘‘Adjusted Peak 

Performance’’ level in 4A994. 

Specifically, this rule corrects the AT 

control cross reference to inform the 

public to ‘‘refer to 4A994 for controls on 

‘digital computer’ with an APP > 0.0128 

but ≤ to 0.75 WT).’’ 

This rule amends ECCN 4A994 by 

revising the Related Definitions 

paragraph of the List of Items Controlled 

to read ‘‘N/A’’ because the definition for 

‘‘two dimensional vector rate’’ applied to 

items controlled by ECCN 4A994.g, 

which was removed and reserved on 

October 6, 2008 (73 FR 58040). 

ECCN 5A001 is amended to revise the 

Technical Note (2) to 5A001.b.6 to 

remove the redundant phrase, ‘‘samples 

of human voice and then convert these.’’ 

This same phrase only needs to be 

stated once in this technical note, so 

this rule is removing the redundant 

phrasing. 

ECCN 7A008 is amended by revising 

the License Exceptions section by 

removing ‘‘TSR: N/A’’ because this 

ECCN is not a technology or software 

entry and adding License Exceptions 

‘‘GBS: N/A’’ and ‘‘LVS: N/A’’ to indicate 

these license exceptions are not eligible 

for this entry. 

ECCN 9E003 is amended by revising 

the SI control under the ‘‘License 

Requirements’’ section to conform the SI 

reason for control to the hot section 

technology for the development, 

production or overhaul of commercial 

aircraft engines, components and 

systems that are currently controlled in 

the ‘‘items’’ paragraphs of ECCN 9E003 

(i.e., 9E003.a.1 through a.10 and h). 

These changes are needed because when 

the ‘‘items’’ paragraph of ECCN 9E003 

was amended on July 12, 2000 (65 FR 

43130), the conforming change to the SI 

reason for control in that same ECCN 

entry was not updated. This rule 

updates this ECCN’s SI license 

requirement to conform to the previous 

updates made to ECCN 9E003. This rule 

also makes conforming changes to 

§§ 734.4(a)(4) and 742.14(a) to conform 

to these same changes in 9E003, as 

described above. 

II. Eliminating Redundant or Outdated 

Controls 

ECCN 3A992 is amended by removing 

License Exception LVS eligibility for 

Syria. Syria is not eligible to receive 

commodities authorized by License 

Exception LVS under the EAR. This rule 

clarifies Syria’s ineligibility by revising 

the LVS paragraph in the License 

Exceptions section of this ECCN to make 

it N/A. 

ECCNs 4B994 and 4C994 are removed 

from the CCL because storage 

equipment previously controlled under 

ECCN 4A994 was removed from control 

on October 8, 2008 (73 FR 58033). 

Because the storage equipment is no 

longer controlled under 4A994, 

equipment for the ‘‘development’’ and 

‘‘production’’ of magnetic and optical 

storage equipment no longer needs to be 

controlled under ECCN 4B994. In 

addition, for the same reason, materials 

specially formulated and required for 

the fabrication of head/disk assemblies 

for controlled magnetic and magnetooptical hard disk drives no longer needs 

to be controlled under ECCN 4C994. To 

conform to the removal of ECCNs 4B994 

and 4C994, this rule also makes 

revisions to ECCNs 4E992 and 4E993 to 

remove references to ‘‘technology’’ 

applicable to these ECCNs 4B994 and 

4C994 that are removed from the CCL 

with this rule. The changes to ECCNs 

4E992 and 4E993 are described above 

under the discussion on ‘‘Revisions to 

the ‘headings’ of existing CCL entries.’’ 

ECCN 8A018 is amended by removing 

‘‘items’’ paragraph (b)(5) to conform to a 

change to the IML. The IML 9 control 

that was under 8A018.b.5, prior to the 

publication of this rule, has been moved 

to paragraphs 8A018.b.1 through 

8A018.b.4. 

III. Establishing More Focused and 

Rationalized Controls 

Changes for Greater Consistency in 

National Security, Regional Stability 

and Encryption Licensing 

In Supplement No. 1 to part 738 

(Commerce Country Chart), this rule 

removes the license requirement for 

Regional Stability (RS 2) from Austria, 

Finland, Ireland, Sweden and 

Switzerland (i.e., this rule removes the 

‘‘X’’ in the box in the RS 2 column for 

these five destinations). This change is 

made to create more consistency in 

what destinations require a license for 

RS column 2, NS column 2, and 

countries listed in Supplement No. 3 to 

part 740 (License Exception ENC 

Favorable Treatment Countries). Thirtyseven countries are in one of these three 

groupings. Twenty-four of the thirtyseven are in all three groupings (i.e., 

these destinations do not require a 

license for RS column 2, NS column 2 

and are listed in Supplement No. 3 to 

part 740). Nine of these thirty-seven 

countries require a license for RS 

column 2. Austria, Finland, Ireland, 

Sweden, and Switzerland all require a 

license for RS column 2 even though 

these countries are in Supplement No. 

3 to Part 740 and do not require a 

license for NS column 2 reasons. 

Because these five countries are the only 

five countries that are listed in 

Supplement No. 3 to Part 740 and also 

do not require a license for NS column 

2 reasons, these countries were the most 

appropriate destinations to remove the 

RS 2 license requirement from in order 

to create greater uniformity in these 

license requirements. This change is 

also made because Austria, Finland, 

Ireland, Sweden and Switzerland are 

not countries that contribute to regional 

instability that would be contrary to the 

foreign policy interests of the United 

States. 

Removing the RS column 2 license 

requirement that applied to these 

countries is consistent with the stated 

purpose of regional stability controls in 

§ 742.6(b), which is to prevent ‘‘export[s] 

or reexport[s] that could contribute 

directly or indirectly to any country’s 

military capability in a manner that 

would alter or destabilize a region’s 

military balance contrary to the foreign 

policy interests of the United States.’’ 

This removal raises the number of 

countries that are in all three groups 

from 24 to 29 and creates more 

consistency in these EAR license 

requirements. 

Savings Clause 

Shipments of items removed from 

eligibility for a License Exception or 

export or reexport without a license 

(NLR) as a result of this regulatory 

action that were on dock for loading, on 

lighter, laden aboard an exporting or 

reexporting carrier, or en route aboard a 

carrier to a port of export or reexport, on 

June 28, 2010, pursuant to actual orders 

for export or reexport to a foreign 

destination, may proceed to that 

destination under the previous 

eligibility for a License Exception or 

export or reexport NLR so long as they 

are exported or reexported July 28, 

2010. Any such items not actually 


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exported or reexported before midnight, 

on July 28, 2010, require a license in 

accordance with this rule. 

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 extended by the 

Notice of August 13, 2009, 74 FR 41325 

(August 14, 2009), has continued the 

EAR in effect under the International 

Emergency Economic Powers Act. 

Rulemaking Requirements 

1. This final rule has been determined 

to be significant for purposes of E.O. 

12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor shall any person 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 currently valid 

Office of Management and Budget 

Control Number. This rule contains a 

collection of information subject to the 

Paperwork Reduction Act of 1980 (44 

U.S.C. 3501 et seq.). This collection has 

been approved by the Office of 

Management and Budget under control 

number 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 58 minutes for a 

manual or electronic submission. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

participation, and a delay in effective 

date, are inapplicable because this 

regulation involves a military and 

foreign affairs function of the United 

States (5 U.S.C. 553(a)(1)). Further, no 

other law requires that a notice of 

proposed rulemaking and an 

opportunity for public comment be 

given for this final rule. Because a 

notice of proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule under 

the Administrative Procedure Act or by 

any other law, the analytical 

requirements of the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) are 

not applicable. Therefore, this 

regulation is issued in final form. 

5. The other changes made under this 

rule are nonsubstantive changes that 

would not meet the criteria noted in the 

preceding paragraph. For these 

nonsubstantive changes described in 

this paragraph, the Department of 

Commerce finds that there is good cause 

under 5 U.S.C. 553(b)(B) to waive the 

provisions of the Administrative 

Procedure Act requiring prior notice 

and the opportunity for public comment 

because they are unnecessary and 

contrary to the public interest. The 

changes made by this rule described 

under this paragraph are not substantive 

changes, but rather are clarifications to 

existing controls. These nonsubstantive 

changes are described under Part I: 

Clarifications to Existing Controls in the 

Background section of this rule. These 

nonsubstantive changes include: 

revisions to the headings of existing 

CCL entries; and removal of an outdated 

‘‘Related Controls’’ reference in one CCL 

entry. This rule does not alter any right, 

obligation or prohibition that applies to 

any person under the Export 

Administration Regulations (EAR). 

Additionally, if the previous rules were 

left in place, public confusion may 

result because the rules would refer to 

outdated references and headings. 

Because these revisions are not 

substantive changes, it is unnecessary to 

provide notice and opportunity for 

public comment. In addition, the 30-day 

delay in effectiveness required by 5 

U.S.C. 553(d) is not applicable because 

this rule is not a substantive rule. 

List of Subjects 

15 CFR Part 734 

Administrative practice and 

procedure, Exports, Inventions and 

patents, Research Science and 

technology. 

15 CFR Part 738 and 772 

Exports. 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

■ Accordingly, parts 734, 738, 740, 742, 

772 and 774 of 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; Notice of August 13, 2009, 74 

FR 41325 (August 14, 2009); Notice of 

November 6, 2009, 74 FR 58187 (November 

10, 2009). 

■ 2. Section 734.4 is amended by 

revising paragraphs (a)(4) and the 

introductory text of paragraph (b)(1), to 

read as follows: 

§ 734.4 De minimis U.S. content. 

(a) * * * 

(4) There is no de minimis level for 

U.S.-origin technology controlled by 

ECCN 9E003a.1 through a.10, and .h, 

when redrawn, used, consulted, or 

otherwise commingled abroad. 

* * * * * 

(b) * * * 

(1) The U.S. origin commodities or 

software, if controlled under ECCNs 

5A002.a.1, .a.2, .a.5, or .a.6, .a.9, or 

5D002, must have been: 

* * * * * 

PART 738—[AMENDED] 

■ 3. The authority citation for 15 CFR 

part 738 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 13, 2009, 74 

FR 41325 (August 14, 2009). 

■ 4. Supplement No. 1 to part 738 

(Commerce Country Chart), is amended 

by removing the ‘‘X’’ in the RS 2 column 

under the Regional Stability column for 

the countries of ‘‘Austria’’, ‘‘Finland’’, 

‘‘Ireland’’, ‘‘Sweden’’, and ‘‘Switzerland’’. 

PART 740—[AMENDED] 

■ 5. 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 13, 2009, 74 

FR 41325 (August 14, 2009). 

■ 6. Section 740.7 is amended: 

■ a. By removing and reserving 

paragraph (b)(2)(i); and 

■ b. By revising paragraphs (c)(3)(ii) and 

(c)(3)(iii), to read as follows: 

§ 740.7 Computers (APP). 

* * * * * 

(b) * * * 

(2) * * * 

(i) [RESERVED] 

* * * * * 

(c) * * * 

(3) * * * 


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Federal Register / Vol. 75, No. 123 / Monday, June 28, 2010 / Rules and Regulations 36515 

(ii) ‘‘Development’’ and ‘‘production’’ 

technology and source code described 

in paragraph (a)(2) of this section for 

computers with an APP less than or 

equal to 0.5 Weighted TeraFLOPS (WT) 

are eligible for deemed exports under 

License Exception APP to foreign 

nationals of Tier 1 destinations, other 

than the destinations that are listed in 

paragraph (c)(3)(i) of this section, 

subject to the restrictions in paragraph 

(b) of this section. 

(iii) ‘‘Use’’ technology and source code 

described in paragraph (a)(2) of this 

section for computers with an APP less 

than or equal to 3 WT are eligible for 

deemed exports under License 

Exception APP to foreign nationals of 

Tier 1 destinations, other than the 

destinations that are listed in paragraph 

(c)(3)(i) of this section, subject to the 

restrictions in paragraph (b) of this 

section. 

* * * * * 

PART 742—[AMENDED] 

■ 7. The authority citation for 15 CFR 

part 742 continues to read as follows: 

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

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

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

U.S.C. 7210; Sec. 1503, Pub. L. 108–11, 117 

Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 

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

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

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

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

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

Comp., p. 783; Presidential Determination 

2003–23 of May 7, 2003, 68 FR 26459, May 

16, 2003; Notice of August 13, 2009, 74 FR 

41325 (August 14, 2009); Notice of November 

6, 2009, 74 FR 58187 (November 10, 2009). 

■ 8. Section 742.14 is amended by 

revising the last sentence of paragraph 

(a), to read as follows: 

§ 742.14 Significant Items: hot section 

technology for the development, production 

or overhaul of commercial aircraft engines, 

components, and systems. 

(a) * * * These items include hot 

section technology for the development, 

production or overhaul of commercial 

aircraft engines controlled under ECCN 

9E003.a.1 through a.10, and .h, and 

related controls. 

* * * * * 

PART 772—[AMENDED] 

■ 9. The authority citation for 15 CFR 

part 772 continues to read as follows: 

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

U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 

3 CFR, 2001 Comp., p. 783; Notice of August 

13, 2009, 74 FR 41325 (August 14, 2009). 

■ 10. Section 772.1 is amended by 

revising the definition of ‘‘reasons for 

control’’, as set forth below: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

* * * * * 

Reasons for Control. Reasons for 

Control are: Anti-Terrorism (AT), 

Chemical & Biological Weapons (CB), 

Chemical Weapons Convention (CW), 

Crime Control (CC), Encryption Items 

(EI), Firearms Convention (FC), Missile 

Technology (MT), National Security 

(NS), Nuclear Nonproliferation (NP), 

Regional Stability (RS), Short Supply 

(SS), Significant Items (SI), 

Surreptitious Listening (SL) and United 

Nations sanctions (UN). Items 

controlled within a particular ECCN 

may be controlled for more than one 

reason. 

* * * * * 

PART 774—[AMENDED] 

■ 11. 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 13, 2009, 74 

FR 41325 (August 14, 2009). 

■ 12. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment (and Miscellaneous Items), 

Export Control Classification Number 

(ECCN) 0E018 is amended by revising 

the heading, to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

0E018 ‘‘Technology’’ for the ‘‘development’’, 

‘‘production’’, or ‘‘use’’ of items 

controlled by 0A018: 

* * * * * 

■ 13. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

3—Electronics, Export Control 

Classification Number (ECCN) 3A992 is 

amended by revising the LVS paragraph 

in the License Exceptions section, to 

read as follows: 

3A992 General purpose electronic 

equipment not controlled by 3A002. 

* * * * * 

License Exceptions 

LVS: N/A 

GBS: * * * 

CIV: * * * 

* * * * * 

■ 14. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

4—Computers, Export Control 

Classification Number (ECCN) 4A003 is 

amended by revising the AT control(s) 

paragraph in the License Requirements 

section, to read as follows: 

4A003 ‘‘Digital computers,’’ ‘‘electronic 

assemblies,’’ and related equipment 

therefor, as follows, and specially 

designed components therefor. 

License Requirements 

Reason for Control: * * * 

Control(s) Country chart 

* * * * * 

AT applies to entire 

entry (refer to 

4A994 for controls 

on ‘‘digital computers’’ with a APP 

>0.0128 but ≤ to 

0.75 WT).

AT Column 1 

* * * * * 

■ 15. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

4—Computers, Export Control 

Classification Number (ECCN) 4A994 is 

amended by removing the definition in 

the Related Definitions paragraph in the 

List of Items Controlled section and 

adding ‘‘N/A’’ in its place. 

■ 16. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

4—Computers, is amended by removing 

Export Control Classification Numbers 

(ECCN) 4B994 and 4C994 and reserving 

‘‘B. Test Inspection and Production 

Equipment’’ and ‘‘C. Materials’’. 

■ 17. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

4—Computers, Export Control 

Classification Number (ECCN) 4E992 is 

amended by revising the heading to read 

as follows: 

4E992 ‘‘Technology’’ other than that 

controlled in 4E001 for the 

‘‘development,’’ ‘‘production,’’ or ‘‘use’’ of 

equipment controlled by 4A994, or 

‘‘software’’ controlled by 4D993 or 

4D994. 

* * * * * 

■ 18. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

4—Computers, Export Control 

Classification Number (ECCN) 4E993 is 

amended: 

■ a. By revising the heading; and 

■ b. By revising the ‘‘items’’ paragraph in 

the List of Items Controlled section, to 

read as follows: 

4E993 ‘‘Technology’’ for the ‘‘development’’ 

or ‘‘production’’ of equipment designed 

for ‘‘multi-data-stream processing.’’ 

* * * * * 


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36516 Federal Register / Vol. 75, No. 123 / Monday, June 28, 2010 / Rules and Regulations 

List of Items Controlled 

Unit: * * * 

Related Controls: * * * 

Related Definitions: * * * 

Items: 

The list of items controlled is contained in 

the ECCN heading. 

■ 19. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

5—Telecommunications and 

‘‘Information Security,’’ Part 1 

Telecommunications, Export Control 

Classification Number (ECCN) 5A001 is 

amended by revising the Technical 

Notes (2) to paragraph (b)(6) of the 

‘‘items’’ paragraph in List of Items 

Controlled section, to read as follows: 

5A001 Telecommunications systems, 

equipment, components and accessories, 

as follows (see List of Items Controlled). 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: * * * 

Related Definitions: * * * 

Items: 

* * * * * 

b.6. * * * 

Technical Notes: 

1. * * * 

2. For the purpose of 5A001.b.6, ‘voice 

coding’ is defined as the technique to take 

samples of human voice and then convert 

these samples of human voice into a digital 

signal taking into account specific 

characteristics of human speech. 

* * * * * 

■ 20. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

7—Navigation and Avionics, Export 

Control Classification Number (ECCN) 

7A008 is amended by revising the 

License Exceptions section, to read as 

follows: 

7A008 Underwater sonar navigation 

systems, using Doppler velocity or 

correlation velocity logs integrated with 

a heading source and having a 

positioning accuracy of equal to or less 

(better) than 3% of distance traveled 

‘‘Circular Error Probable’’ (‘‘CEP’’), and 

specially designed components therefor. 

* * * * * 

License Exceptions 

LVS: N/A 

GBS: N/A 

CIV: N/A 

* * * * * 

■ 21. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

8—Marine, Export Control Classification 

Number (ECCN) 8A018 is amended by 

revising paragraph (b) of the ‘‘items’’ 

paragraph in the List of Items Controlled 

section, to read as follows: 

8A018 Items on the Wassenaar 

Arrangement Munitions List. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: * * * 

Related Definitions: * * * 

Items: 

a. * * * 

b. Naval equipment, as follows: 

b.1. Diesel engines of 1,500 hp and over 

with rotary speed of 700 rpm or over 

specially designed for submarines, and 

specially designed components therefor; 

b.2. Electric motors specially designed for 

submarines, i.e., over 1,000 hp, quick 

reversing type, liquid cooled, and totally 

enclosed, and specially designed components 

therefor; 

b.3. Nonmagnetic diesel engines, 50 hp and 

over, specially designed for military purposes 

with nonmagnetic content in excess of 75 

percent of total mass and specially designed 

components therefor; 

b.4. Submarine and torpedo nets and 

specially designed components therefor. 

■ 22. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Propulsion Systems, Space Vehicles 

and Related Equipment, Export Control 

Classification Number (ECCN) 9A018 is 

amended by revising paragraphs (c),(d) 

and (f) of the ‘‘items’’ paragraph in the 

List of Items Controlled section, to read 

as follows: 

9A018 Equipment on the Wassenaar 

Arrangement Munitions List. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: * * * 

Related Definition: * * * 

Items: 

* * * * * 

c. Pressure refuelers, pressure refueling 

equipment, equipment specially designed to 

facilitate operations in confined areas; and 

ground equipment, developed specially for 

military ‘‘aircraft’’, and specially designed 

parts and accessories, n.e.s.; 

d. Pressurized breathing equipment 

specially designed for use in military 

‘‘aircraft’’; 

e. * * * 

f. Military instrument flight trainers, except 

for combat simulation; and components and 

accessories specially designed for such 

equipment. 

■ 23. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9A991 is amended: 

■ a. By revising ‘‘items’’ paragraph (b) in 

the List of Items Controlled section; and 

■ b. By revising ‘‘items’’ paragraph (c) in 

the List of Items Controlled section and 

the note to paragraph (c), to read as 

follows: 

9A991 ‘‘Aircraft’’, n.e.s., and gas turbine 

engines not controlled by 9A001 or 

9A101 and parts and components, n.e.s. 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: * * * 

Related Definitions: * * * 

Items: 

* * * * * 

b. Civil aircraft; 

Note: * * * 

c. Aero gas turbine engines, and specially 

designed parts therefor. 

Note: 9A991.c does not control aero gas 

turbine engines that are destined for use in 

civil ‘‘aircraft’’ and that have been in use in 

bona fide civil ‘‘aircraft’’ for more than eight 

years. If they have been in use in bona fide 

civil ‘‘aircraft’’ for more than eight years, such 

engines are controlled under 9A991.d. 

* * * * * 

■ 24. In Supplement No. 1 to part 774 

(The Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9E003 is amended by revising the 

‘‘Control(s)’’ paragraph in the License 

Requirements section, to read as 

follows: 

9E003 Other ‘‘technology’’ as follows (see 

List of Items Controlled). 

License Requirements 

Reason for Control: NS, SI, AT 

Control(s) Country Chart 

NS applies to entire 

entry.

NS Column 1 

SI applies to 

9E003.a.1 through 

a.10, and h. See 

§ 742.14 of the 

EAR for additional 

information.

AT applies to entire 

entry.

AT Column 1 

* * * * * 

Dated: June 21, 2010. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2010–15444 Filed 6–25–10; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 100429205–0248–01] 

RIN 0694–AE92 

Addition and Removal of Certain 

Persons on the Entity List: Addition of 

Persons Acting Contrary to the 

National Security or Foreign Policy 

Interests of the United States; Removal 

of Person Based on Removal Request 

AGENCY: Bureau of Industry and 

Security, Commerce. 


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