Vol. 78 Thursday, 

No. 192 October 3, 2013 

Part VIII 

Department of State 

22 CFR Parts 120, 121, 123, et al. 

Amendment to the International Traffic in Arms Regulations: Initial 

Implementation of Export Control Reform; Correction; Final Rule 


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61750 Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 

DEPARTMENT OF STATE 

22 CFR Parts 120, 121, 123, and 126 

RIN 1400–AD37 

[Public Notice 8493] 

Amendment to the International Traffic 

in Arms Regulations: Initial 

Implementation of Export Control 

Reform; Correction 

AGENCY: Department of State. 

ACTION: Final rule; correction. 

SUMMARY: The Department of State is 

correcting a final rule that appeared in 

the Federal Register of April 16, 2013. 

DATES: This rule is effective October 15, 

2013. 

FOR FURTHER INFORMATION CONTACT: Mr. 

C. Edward Peartree, Director, Office of 

Defense Trade Controls Policy, 

Department of State, telephone (202) 

663–2792; email DDTCResponseTeam@

state.gov. ATTN: Regulatory Change, 

Corrections to First ECR Final Rule. 

SUPPLEMENTARY INFORMATION: The 

Department provides the following 

corrections to the rule, ‘‘Amendment to 

the International Traffic in Arms 

Regulations: Initial Implementation of 

Export Control Reform,’’ published on 

April 16, 2013 and effective on October 

15, 2013 (78 FR 22740). As part of the 

President’s Export Control Reform (ECR) 

effort, that rule amended the 

International Traffic in Arms 

Regulations (ITAR) to revise four U.S 

Munitions List (USML) categories, 

provide new definitions, and provide 

policies and procedures regarding the 

licensing of items moving from the 

export jurisdiction of the Department of 

State to the Department of Commerce. 

Most of the changes in this rule are 

meant to clarify the regulation by 

correcting grammatical and punctuation 

errors, providing references and more 

appropriate arrangement of the 

regulation, and in a few instances 

correcting unintended consequences of 

the regulation as published on April 16. 

In addition, certain errors and omissions 

in the Transition Plan included in that 

rule are corrected, and a revised 

Supplement No. 1 to part 126, which 

takes into account the changes made to 

the USML thus far, is provided. 

Pursuant to ECR, the Department of 

Commerce has been publishing 

revisions to the Export Administration 

Regulations, including various revisions 

to the Commerce Control List. Revision 

of the USML and CCL are coordinated 

so there is uninterrupted regulatory 

coverage for items moving from the 

jurisdiction of the Department of State 

to that of the Department of Commerce. 

The Department of Commerce’s 

companion to the rule corrected in this 

notice (see ‘‘Revisions to the Export 

Administration Regulations: Initial 

Implementation of Export Control 

Reform,’’ 78 FR 22660) is also corrected 

in this edition of the Federal Register. 

The following corrections are made to 

FR Doc. No. 2013–8351, ‘‘Amendment 

to the International Traffic in Arms 

Regulations: Initial Implementation of 

Export Control Reform,’’ published on 

April 16, 2013: 

■ 1. On page 22740, in the first column, 

in the heading, ‘‘22 CFR Parts 120, 121, 

and 123’’ is corrected to read ‘‘22 CFR 

Parts 120, 121, 123, and 126.’’ 

■ 2. On page 22740, in the third column, 

in the ‘‘Changes in This Rule’’ 

paragraph, ‘‘(v)’’ is changed to ‘‘(vi),’’ 

and a new ‘‘(v)’’ section is added as 

follows: ‘‘(v) updating of Supplement 

No. 1 to part 126 to reflect the changes 

to the USML in this rule;’’ 

■ 3. Starting on page 22747, in the third 

column, through page 22751, in the first 

column, ‘‘Transition Plan’’ is revised to 

read as follows: 

Transition Plan 

With the intention of establishing 

certain necessary licensing procedures 

stemming from ECR implementation 

and mitigating the impact of the changes 

involved in the revision of the USML 

and the CCL on U.S. license holders and 

the defense export industry, the 

Department implements the following 

‘‘Transition Plan,’’ which will describe 

(1) timelines for implementation of 

changes, (2) certain temporary licensing 

procedures for items transitioning from 

the USML to the CCL, and 3) certain 

permanent licensing procedures 

pertaining to the export of any item 

‘‘subject to the EAR’’ (see definition of 

this term in this rule) to be used in or 

with defense articles controlled on the 

USML. 

The Department notes the following 

main points regarding licensing 

procedure during the transition and 

thereafter: 

• There will generally be a 180-day 

transition period between the 

publication of the final rule for each 

revised USML category and its effective 

date. This period will allow U.S. license 

holders time to review their current 

authorizations and prepare for the 

transition to the new Export Control 

Classification Numbers (ECCNs). 

• A license application or other 

request for authorization containing 

only transitioning items or both USML 

and transitioning items will be accepted 

by the Department up until the effective 

date of the relevant revised USML 

category. 

• A license or authorization issued by 

the Department will be effective for up 

to two years from the effective date of 

the revised USML category if all the 

items listed on the license or 

authorization have transitioned to the 

export jurisdiction of the Department of 

Commerce. 

• A license or authorization issued by 

the Department will be valid until its 

expiration if some of the items listed on 

the license or authorization have 

transitioned to the export jurisdiction of 

the Department of Commerce. 

• USML categories will have a new 

(x) paragraph, the purpose of which is 

to allow for Department of State 

licensing for commodities, software, and 

technical data subject to the EAR, 

provided those commodities, software, 

and technical data are to be used in or 

with defense articles controlled on the 

USML and are described in the 

purchase documentation submitted with 

the application. 

The Department first presented for 

public comment its plan for licensing 

policies and procedures regarding items 

moving from the export jurisdiction of 

the Department of State to the 

Department of Commerce on June 21, 

2012 (see ‘‘Export Control Reform 

Transition Plan,’’ 77 FR 37346). The 

comment period ended August 6, 2012. 

Seventeen parties filed comments 

during the established comment period 

recommending changes. The 

Department’s evaluation of the written 

comments and recommendations 

follows. 

Eight commenting parties stated that 

the proposed 45-day transition period 

was insufficient time to accomplish all 

that was necessary to adapt company 

systems to the changes and 

recommended longer transition periods 

of varying lengths. The Department has 

accepted the recommendation for a 

longer transition period, and has 

changed the effective date of revised 

USML categories to 180 days from the 

date of publication. 

In response to the recommendation of 

several commenting parties for shared 

licensing authority for items changing 

export jurisdiction, the Department’s 

transition guidance will provide that, 

for 180 days following the publication 

date of a revised USML category, 

licenses for items moving from the 

USML to the CCL will be accepted by 

both DDTC and BIS. In addition, DDTC 

authorizations that pertain wholly to 

transitioned items will expire two years 

after the effective date of the relevant 

final rule moving the items to the CCL, 

and licenses that have some items 

remaining on the USML will be valid 

until expiration for all items covered by 


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Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 61751 

the license at the time it was issued. 

Applicants should refer to the 

Department of Commerce’s companion 

to this rule, which is published 

elsewhere in this issue of the Federal 

Register, for information related to BIS 

licenses during the transition period. 

Two commenting parties stated that 

dual jurisdiction/licensing will create a 

heavy compliance burden for USML 

end-item manufacturers with 

international supply chains, as each of 

the export authorities has different 

compliance obligations. The 

commenting parties also stated that it 

will create confusion as foreign parties 

may be party to a USML technical 

assistance agreement and receive items 

for the project under a Department of 

Commerce license or Strategic Trade 

Authorization (STA) license exception. 

The Department acknowledges this 

complexity, but notes that ECR will not 

create a new context in this regard, as 

current projects routinely require both 

defense articles and commercial items 

for completion. Dual compliance 

requirements already exist and the 

Department believes the benefits 

derived from changes implemented 

under ECR outweigh these concerns. 

One commenting party requested 

clarification of whether sending to a 

foreign supplier technical data on a 

USML end-item to allow installation of 

a 600 series component is both a USML 

technical data export and CCL 

installation technology export, creating 

dual licensing for most foreign sourced 

commodities. If the technical data is 

directly related to a defense article, the 

technical data will be ITAR controlled. 

If the technical data is for the 

production, development, etc., of a 600 

series or CCL item to be installed in a 

defense article, the technical data 

remains EAR controlled. The 

jurisdiction of the technical data follows 

the jurisdiction of the related 

commodity or item. 

Five commenting parties 

recommended that amendments to 

licenses and authorizations that contain 

transitioning and non-transitioning 

items or solely transitioning items 

should be allowed during the transition 

period. The Department accepted this 

recommendation and revised the 

guidance to provide that such 

submissions will be accepted up until 

the effective date of the relevant revised 

USML category. 

Three commenting parties 

recommended allowing temporary 

import and export authorizations to last 

until expired or returned. As the items 

temporarily imported or exported are to 

return to their point of origin, pursuant 

to the requirements of the 

authorizations, there is no national 

security risk in maintaining the original 

authorizations. The Department 

accepted this recommendation and 

revised the guidance accordingly. 

One commenting party noted that 

currently approved agreements covering 

dual/third country national employees 

of the foreign party will be affected by 

the need to obtain deemed export 

licenses, and that two years may not be 

sufficient time to fulfill this 

requirement. The Department notes that 

as long as the currently approved 

agreement has been amended to provide 

authority for the transitioned items in 

accordance with the guidance in this 

notice, the dual/third country national 

authority would still apply. 

Five commenting parties 

recommended that existing reexport/

retransfer authorizations should be 

grandfathered without expiration. 

Foreign parties who purchased 

transitioned items under authorizations 

that allowed perpetual foreign sales 

should not have to reauthorize those 

sales and the U.S. Government should 

not re-review the authorizations. The 

Department accepted this 

recommendation and revised the 

guidance accordingly. The three 

scenarios for which this applies are: (1) 

Reexport/retransfer authority granted 

through a program status DSP–5; (2) the 

sales territory of a manufacturing 

license or warehouse and distribution 

agreement if the agreement continues to 

be the export authority; and (3) any 

stand-alone reexport/retransfer 

authorization received pursuant to ITAR 

§ 123.9(c). 

Two commenting parties 

recommended requiring U.S. exporters 

to identify ECCNs and prior USML 

classifications on export documentation 

for two years following the effective 

date of transitioned items and mandate 

prompt responses to requests for ECCNs 

for legacy items. The Department 

accepted this recommendation in part. 

The Department has revised ITAR 

§ 123.9(b) to require identification of the 

license or other approval to the foreign 

party. 

Seven commenting parties 

recommended that previously issued 

commodity jurisdiction (CJ) 

determinations designating items as not 

subject to the export jurisdiction of the 

Department remain valid. This will 

preserve EAR99 status for items 

previously so designated and would 

relieve exporters who have obtained CJ 

determinations from having to reclassify 

items. The Department accepted this 

recommendation and revised the 

guidance accordingly. 

One commenting party inquired what 

Automated Export System (AES) entry 

would be required for items that have 

transitioned to control under the CCL 

but are to be exported under a legacy 

DDTC authorization. The AES entry for 

such exports will remain the same as is 

required now for a DDTC authorization. 

In response to one commenting 

party’s inquiry on what effect the 

transition will have on recordkeeping 

requirements, the Department notes 

records must be maintained for five 

years following the last transaction, 

regardless of jurisdiction. 

After consideration of the comments 

received, and in furtherance of the 

principles of ECR, the Department has 

decided to institute a new permanent 

licensing procedure that will allow 

DDTC licensing for commodities, 

software, and technical data subject to 

the EAR, provided those commodities, 

software, and technical data are to be 

used in or with defense articles 

controlled on the USML and are 

described in the purchase 

documentation submitted with the 

application. This procedure is to be 

effected by the exporter by use of ‘‘(x) 

paragraph,’’ added to USML Categories 

VIII and XIX in this rule, and to be 

added to other USML categories as they 

are revised. The Department will begin 

accepting licenses citing a (x) paragraph 

entry following the effective date of the 

relevant revised USML category. The 

President has provided for this 

delegation of authority from the 

Secretary of Commerce to the Secretary 

of State, and Executive Order 13222 has 

been amended accordingly (see 78 FR 

16129). The Department has revised 

various sections of, and added certain 

sections to, the ITAR to accommodate 

this delegation of authority: ITAR 

§ 120.5 to add a new paragraph (b) to 

address the delegation; the addition of 

ITAR § 120.42 to provide a definition of 

‘‘subject to the EAR’’; ITAR § 123.1 to 

provide guidance on how to use the (x) 

paragraph; and ITAR § 123.9(b) to 

identify additional requirements when 

using the (x) paragraph. The Department 

of Commerce has the authority to review 

‘‘pre-positioned’’ license applications 

during the 180-day transition period for 

items transitioning to EAR jurisdiction. 

This means the Department of 

Commerce will be able to review and 

process license applications for 

transitioning items. However, these 

Department of Commerce licenses 

would not be issued until the effective 

date of the relevant final rule moving 

items from the USML to the CCL. 

Further guidance is provided in the 

Department of Commerce’s companion 

to this rule (see ‘‘Revision to the Export 


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61752 Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 

Administration Regulations: Initial 

Implementation of Export Control 

Reform,’’ elsewhere in this edition of 

the Federal Register). 

Transition Plan 

Transition Period—General Policy 

There will generally be a 180-day 

transition period between the 

publication of the final rule for each 

revised U.S. Munitions List (USML) 

category and its effective date. This 

period will allow U.S. license holders 

time to review their current 

authorizations and prepare for the 

transition to the new ECCNs. A license 

application or other request for 

authorization containing only 

transitioning items or both USML and 

transitioning items will be accepted by 

the Department up until the effective 

date of the relevant revised USML 

category. A license or authorization 

issued by the Department will be 

effective for up to two years from the 

effective date of the revised USML 

category if all the items listed on the 

license or authorization have 

transitioned to the export jurisdiction of 

the Department of Commerce. A license 

or authorization issued by the 

Department will be valid until its 

expiration if some of the items listed on 

the license or authorization have 

transitioned to the export jurisdiction of 

the Department of Commerce. During 

this period, BIS will accept license 

applications for items moving from the 

USML to the CCL, but it will not issue 

licenses for such items until the 

applicable effective date. 

DSP–5 Licenses 

Approvals issued for licenses 

submitted prior to the effective date of 

the relevant revised USML category that 

do not include any items that will 

remain on the USML will remain valid 

until expired, returned by the license 

holder, or for a period of two years from 

the effective date of the final rule, 

whichever occurs first, unless otherwise 

revoked, suspended, or terminated. 

Licenses containing both transitioning 

and non-transitioning items (mixed 

authorizations) will remain valid until 

expired or returned by the license 

holder, unless otherwise revoked, 

suspended, or terminated. Any 

limitation, proviso, or other requirement 

imposed on the DDTC authorization 

will remain in effect if the DDTC 

authorization is relied upon for export. 

License amendment requests (DSP–6) 

received by DDTC during the transition 

period amending licenses affected by 

the transition will be adjudicated on a 

case-by-case basis up until the effective 

date of the relevant rule. 

DSP–61 and DSP–73 Licenses 

All temporary licenses that are issued 

in the period prior to the effective date 

of the final rule for each revised USML 

category will remain valid until expired 

or returned by the license holder, unless 

otherwise revoked, suspended, or 

terminated. Any limitation, proviso, or 

other requirement imposed on the 

DDTC authorization will remain in 

effect if the DDTC authorization is relied 

upon for export. License amendment 

requests (DSP–62 and DSP–74) received 

by DDTC during the transition period 

amending licenses affected by the 

transition will be adjudicated on a caseby-case basis until the effective date of 

the relevant rule. 

License Applications Received After the 

Transition Period 

All license applications, including 

amendments, received after the effective 

date for items that have transitioned to 

the CCL that are not identified in a (x) 

paragraph entry will be Returned 

Without Action with instructions to 

contact the Department of Commerce. 

Technical Assistance Agreements, 

Manufacturing License Agreements, 

Warehouse and Distribution 

Agreements, and Related Reporting 

Requirements 

Approvals issued for agreements 

submitted prior to the effective date of 

the relevant revised USML category that 

contain transitioning and nontransitioning items will remain valid 

until expired, unless they require an 

amendment, or for a period of two years 

from the effective date of the relevant 

final rule, whichever occurs first, unless 

otherwise revoked, suspended, or 

terminated. In order for an agreement to 

remain valid beyond two years, an 

amendment must be submitted to 

authorize the CCL items using the new 

(x) paragraph from the relevant USML 

category. Any activity conducted under 

an agreement will remain subject to all 

limitations, provisos, and other 

requirements stipulated in the 

agreement. 

Approvals issued for agreements 

submitted prior to the effective date of 

the relevant revised USML category that 

contain solely transitioning items will 

remain valid for a period of two years 

from the effective date of the relevant 

USML category, unless revoked, 

suspended, or terminated. After the two 

year period ends, any on-going activity 

must be conducted under the 

appropriate Department of Commerce 

authorization. Agreements and 

agreement amendments solely for items 

moving to the CCL which are received 

after the effective date will be Returned 

Without Action with instructions to 

contact the Department of Commerce. 

All reporting requirements for 

Manufacturing License Agreements 

under ITAR § 124.9(a)(6) and 

Warehouse and Distribution Agreements 

under ITAR § 124.14(c)(6) must be 

complied with and such reports must be 

submitted to the Department of State 

while the agreement is relied upon as an 

export authorization by the exporter. 

ITAR Licensing of Items Subject to the 

EAR 

USML categories will have a new (x) 

paragraph, to be a permanent feature of 

ITAR licensing. The purpose of this 

procedure is to allow for ITAR licensing 

for commodities, software, and 

technical data subject to the Export 

Administration Regulations (EAR) 

provided those commodities, software, 

and technical data are to be used in or 

with defense articles controlled on the 

USML and are described in the 

purchase documentation submitted with 

the application. 

Commodity Jurisdiction Determinations 

Previously issued commodity 

jurisdiction (CJ) determinations for 

items deemed to be subject to the EAR 

shall remain valid. Previously issued CJ 

determinations for items deemed to be 

USML but that are subsequently 

transitioning to the CCL pursuant to a 

published final rule will be superseded 

by the newly revised lists. Exporters are 

encouraged to review each revised 

USML category along with its 

companion CCL category to determine 

whether the items subject to a CJ have 

transitioned to the jurisdiction of the 

Department of Commerce. These CJs are 

limited to the specific commodity 

identified in the final determination 

letter. Consistent with the 

recordkeeping requirements of the ITAR 

and the EAR, licensees and foreign 

persons subject to licenses must 

maintain records reflecting their 

assessments of the proper regulatory 

jurisdiction over their items. License 

holders unable to ascertain the proper 

jurisdiction of their items may request a 

CJ determination from DDTC through 

the established procedure. 

License holders who are certain their 

items have transitioned to the CCL are 

encouraged to review the appropriate 

ECCN to determine the classification of 

their item. License holders who are 

unsure of the proper ECCN designation 

may submit a Commodity Classification 

Automated Tracking System request 


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Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 61753 

(CCATS) to the Department of 

Commerce. See 15 CFR 748.3. 

As described in EAR § 748.3(b)(3), 

parties making classification selfdeterminations or submitting CCATS 

requests are reminded that such 

determinations may not be relied upon 

or cited as evidence that the U.S. 

Government has determined that the 

item is not subject to the ITAR. As 

described in ITAR § 120.5, an item that 

is described on the USML is ITAR 

controlled regardless of whether it also 

within the scope of an ECCN or referred 

to in a CCATS. 

Reexport/Retransfer of USML Items 

That Have Transitioned to the CCL 

Following the effective date of 

transition, foreign persons (i.e., endusers, foreign consignees, and foreign 

intermediate consignees) who receive, 

via a Department of State authorization, 

an item that they are certain has 

transitioned to the CCL (e.g., confirmed 

in writing by manufacturer or supplier), 

should treat the item as such and submit 

requests for post-transition reexports or 

retransfers outside the scope of the 

original ITAR authorization to the 

Department of Commerce, as may be 

required by the EAR. 

If reexport or retransfer was 

previously authorized under a DDTC 

authorization, then that reexport or 

retransfer authority remains valid. The 

three scenarios for which this applies 

are: (1) Reexport/retransfer authority 

granted through a program status DSP– 

5; (2) the sales/distribution territory of 

a manufacturing license or warehouse 

and distribution agreement if the 

agreement continues to provide the 

export authority; or (3) any stand-alone 

reexport/retransfer authorization 

received pursuant to ITAR § 123.9. 

Foreign persons or U.S. persons 

abroad that have USML items in their 

inventory at the effective date of 

transition should review both the USML 

and the CCL to determine the proper 

jurisdiction. If the item is controlled by 

the Department of Commerce, any 

reexport or retransfer must comply with 

the requirements of the EAR. If doubt 

exists on jurisdiction of the items, the 

foreign person should contact the 

original exporter or manufacturer. 

Regulatory Oversight Responsibilities 

For those items transitioning from the 

USML to the CCL, the Department of 

Commerce will exercise regulatory 

oversight, as of the effective date, for the 

purposes of licensing and enforcement 

of exports from the United States where 

no Department of State authorization is 

being used. The Department of State 

will continue to exercise regulatory 

oversight concerning all Department of 

State licenses, agreements, and other 

authorizations, including those where 

exporters, temporary importers, 

manufacturers, and brokers continue to 

use previously issued Department of 

State licenses and agreements, until the 

activity is covered by a Department of 

Commerce authorization. 

License holders may decide to apply 

for and use Department of Commerce 

authorizations for export of the newly 

transitioned CCL items rather than 

continue to use previously issued 

Department of State authorizations. In 

such cases, license holders must return 

the Department of State licenses in 

accordance with ITAR § 123.22 after 

they have obtained the required 

Department of Commerce 

authorizations. 

Violations and Voluntary Disclosures of 

Possible Violations 

Exporters, temporary importers, 

manufacturers, and brokers are 

cautioned to closely monitor ITAR and 

EAR compliance concerning 

Department of State licenses and 

agreements for items transitioning from 

the USML to the CCL. 

On the effective date of each rule that 

adds an item to the CCL that was 

previously subject to the ITAR, that item 

will be subject to the EAR. Approvals 

issued by DDTC for license applications 

and other authorization requests may 

continue to be used as described above 

by exporters, temporary importers, 

manufacturers, and brokers. The 

violation of a previously issued DDTC 

authorization (including any condition 

of a DDTC authorization) that is 

continued to be used as described above 

is a violation of the ITAR. 

With respect to a transitioned item, 

persons who discover a possible 

violation of the ITAR, the EAR, or any 

license or authorization issued 

thereunder, are strongly encouraged to 

disclose this violation to DDTC, BIS, or 

both offices, as appropriate, pursuant to 

established procedures for submitting 

voluntary disclosures. 

License holders and foreign persons 

must obtain Department of State 

authorization before disposing, 

reselling, transshipping, or otherwise 

transferring any item in their possession 

that remains on the USML. 

Registration 

With few exceptions, manufacturers, 

exporters, and brokers are required to 

register with the Department of State if 

their activities involve USML defense 

articles or defense services. 

Registered manufacturers, exporters, 

temporary importers, defense service 

providers and brokers (‘‘registrants’’) are 

reminded of the requirement to notify 

DDTC in writing when they are no 

longer in the business of manufacturing, 

exporting, or brokering USML defense 

articles or defense services. Registrants 

who determine that all of their activities 

involve articles or services that will 

transition from the USML to the CCL 

and therefore are no longer required to 

register with the Department of State 

must provide such written notification 

to the Department of State. Instructions 

for providing such notification are 

accessible on the DDTC Web site 

(www.pmddtc.state.gov). Note that 

DDTC will not cancel or revoke those 

registrations, but will allow the 

registrations to expire. Registrants who 

determine that all of their activities will 

be subject to Department of Commerce 

jurisdiction as a result of the transition 

from the USML to the CCL must 

nevertheless maintain registration with 

the Department of State until the 

effective date of the applicable final rule 

transitioning the registrant’s items to the 

CCL. 

Registrants who determine they will 

no longer be required to register with 

the Department of State after the 

effective date of the final rule 

transitioning the registrant’s items to the 

CCL, and who have registration renewal 

dates that occur after publication of the 

final rule but before its effective date, 

may request to have their registration 

expiration date extended to the effective 

date of transition and not be charged a 

registration fee. In those cases, 

registrants must insert the following 

statement as the first paragraph in the 

written notification previously 

mentioned: ‘‘(insert company name) 

requests DDTC extend our registration 

expiration date to the effective date of 

transition to CCL for USML Category 

(insert Category number) items and 

waive the registration fee. (insert 

company name) certifies that no 

changes in our eligibility from what is 

represented in our previously submitted 

DS–2032 Statement of Registration has 

occurred (otherwise specify change in 

eligibility status).’’ If a registrant 

subsequently determines that its 

registration with the Department of 

State must instead be renewed, the 

registration renewal fee will be 

recalculated to include any Department 

of State licenses the registrant received 

during the period when the registration 

expiration date was extended. 

Registrants that avail themselves of 

the opportunity to continue using 

previously issued Department of State 

authorizations (licenses and agreements) 

for items that have transitioned to the 

CCL must maintain current registration 


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61754 Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 

with the Department of State, which 

includes payment of registration fees. 

■ 4. On page 22751, in the second 

column, as a new last paragraph to the 

‘‘Additional Required Changes’’ section, 

the following is added: ‘‘Supplement 

No. 1 to part 126 is revised in 

conformance with the revisions of 

USML Categories VIII, XVII, and XXI 

and addition of USML Category XIX.’’ 

■ 5. On page 22752, in the third column, 

the list of subjects and the words of 

issuance are corrected to read as 

follows: 

List of Subjects 

22 CFR Parts 120 and 121 

Arms and munitions, Classified 

information, Exports. 

22 CFR Part 123 

Arms and munitions, Exports, 

Reporting and recordkeeping 

requirements. 

22 CFR Part 126 

Arms and munitions, Exports. 

‘‘Accordingly, for the reasons set forth 

above, Title 22, Chapter I, Subchapter 

M, parts 120, 121, 123, and 126 are 

amended as follows.’’ 

PART 120 [CORRECTED] 

§ 120.5 [Corrected] 

■ 6. On page 22753, in the third column, 

in paragraph (a), in the sentence 

beginning, ‘‘In carrying out the 

functions delegated to the Attorney 

General . . .,’’ the comma after 

‘‘security’’ is removed. In the sentence 

beginning, ‘‘The Department of 

Commerce regulates the export . . .,’’ 

‘‘(CCL)’’ is removed. 

§ 120.10 [Corrected] 

■ 7. On page 22754, in the first column, 

in paragraph (b), commas are placed 

after ‘‘mathematical’’ and ‘‘colleges,’’ 

and ‘‘of this subchapter’’ is placed after 

‘‘§ 120.11.’’ 

§ 120.29 [Corrected] 

■ 8. On page 22754, in the first column, 

in paragraph (a), ‘‘among’’ replaces 

‘‘between.’’ 

§ 120.41 [Corrected] 

■ 9. On page 22754, in the second 

column, in paragraph (a) introductory 

text, the quotations are removed from 

‘‘specially designed.’’ Paragraph (b) 

introductory text is removed and 

replaced with, ‘‘For purposes of this 

subchapter, a part, component, 

accessory, attachment, or software is not 

specially designed if it:’’ ‘‘Note 1 to 

paragraph (a)’’ is removed. ‘‘Note 2 to 

paragraph (a)’’ is re-titled, ‘‘Note to 

paragraphs (a) and (b).’’ In the third 

column, in ‘‘Note to paragraph (b),’’ the 

following is added as a first sentence: 

‘‘The term ‘‘enumerated’’ refers to any 

article on the U.S. Munitions List or the 

Commerce Control List and not in a 

‘‘catch-all’’ paragraph.’’ The last 

sentence in the note is replaced with the 

following: ‘‘For the purposes of the U.S. 

Munitions List, a ‘‘catch-all’’ paragraph 

includes the phrases ‘‘and specially 

designed parts and components 

therefor,’’ or ‘‘(parts, components, 

accessories, attachments, and associated 

equipment) specially designed for/to/

with.’’ The text for ‘‘Note 4 to paragraph 

(b)(3)’’ is removed and replaced with the 

following text: ‘‘The form of a 

commodity is defined by its 

configuration (including the 

geometrically measured configuration), 

material, and material properties that 

uniquely characterize it. The fit of a 

commodity is defined by its ability to 

physically interface or connect with or 

become an integral part of another 

commodity. The function of a 

commodity is the action or actions it is 

designed to perform. Performance 

capability is the measure of a 

commodity’s effectiveness to perform a 

designated function in a given 

environment (e.g., measured in terms of 

speed, durability, reliability, pressure, 

accuracy, efficiency). For software, the 

form means the design, logic flow, and 

algorithms. The fit is defined by its 

ability to interface or connect with a 

defense article. The function means the 

action or actions the software performs 

directly related to a defense article or as 

a standalone application. Performance 

capability means the measure of the 

software’s effectiveness to perform a 

designated function.’’ After ‘‘Note 4 to 

paragraph (b)(3),’’ the following new 

note is added: ‘‘Note 5 to paragraph 

(b)(3): With respect to a commodity, 

‘‘equivalent’’ means its form has been 

modified solely for fit purposes.’’ 

PART 121 [CORRECTED] 

§ 121.1 [Corrected] 

■ 10. On page 22755, in the second 

column, in paragraph (b)(3), the 

following is removed: ‘‘The asterisk is 

placed as a convenience to help identify 

such defense articles.’’ 

In the third column, in Category VIII,’’ 

in paragraphs (a)(5), (6), (10), and (13), 

the quotation marks are removed from 

‘‘range.’’ ‘‘Note 1 to paragraph (a)’’ is retitled, ‘‘Note to paragraph (a).’’ In the 

note, the quotation marks are removed 

from the second, third, and fourth 

occurrences of ‘‘range.’’ On page 22756, 

in the first column, in paragraph (d), the 

quotation marks are removed from 

‘‘range.’’ The following is added as a 

second sentence in ‘‘Note to paragraph 

d’’: ‘‘For the definition of ‘‘range,’’ see 

note to paragraph (a) of this category.’’ 

The text of paragraph (f) is removed and 

replaced with the following text: 

‘‘Developmental aircraft funded by the 

Department of Defense via contract or 

other funding authorization, and 

specially designed parts, components, 

accessories, and attachments therefor.’’ 

‘‘Note 1 to paragraph VIII(f)’’ is re-titled, 

‘‘Note 1 to paragraph (f).’’ In the note 

text, ‘‘VIII’’ and ‘‘developmental’’ are 

removed from the introductory 

sentence, ‘‘in production; (b)’’ is placed 

between ‘‘(a)’’ and ‘‘determined,’’ a 

comma is placed after ‘‘(see § 120.4 of 

this subchapter),’’ ‘‘(b)’’ is replaced by 

‘‘(c),’’ and ‘‘or other funding 

authorization’’ is placed between 

‘‘contract’’ and ‘‘as.’’ ‘‘Note 2 to 

paragraph VIII(f)’’ is re-titled, ‘‘Note 2 to 

paragraph (f).’’ A new note is added 

after ‘‘Note 2 to paragraph (f),’’ as 

follows: ‘‘Note 3 to paragraph (f): This 

provision is applicable to those 

contracts or other funding 

authorizations that are dated April 16, 

2014, or later.’’ A new note is added 

after paragraph (h)(1), as follows: ‘‘Note 

to paragraph (h)(1): Specially designed 

(see § 120.4(b)(3)(ii) of this subchapter) 

does not control parts, components, 

accessories, and attachments that are 

common to aircraft enumerated in 

paragraph (a) of this category but not 

identified in paragraph (h)(1), and those 

identified in paragraph (h)(1). For 

example, a part common to only the F– 

14 and F–35 is not specially designed 

for purposes of the ITAR. A part 

common to only the F–22 and F–35— 

two aircraft models identified in 

paragraph (h)(1)—is specially 

designed.’’ In the second column, in 

paragraph (h)(2), a comma is placed 

after ‘‘lubrication.’’ In paragraph (h)(3), 

a comma is placed after ‘‘systems.’’ In 

paragraph (h)(5), a comma is placed 

after ‘‘gear.’’ In paragraph (h)(11), a 

comma is placed after the second 

occurrence of ‘‘systems.’’ In the third 

column, in paragraph (h)(20)(ii), 

‘‘directly related to defense articles in 

this subchapter or 600 series items 

subject to the EAR’’ is placed after 

‘‘software.’’ In paragraph (h)(20)(iii), 

‘‘(see § 120.10(a)(2) of this subchapter)’’ 

is placed after ‘‘information.’’ 

On page 22757, in the second column, 

in Category XIX, paragraph (e), the 

quotation marks are removed from 

‘‘range.’’ In ‘‘Note to paragraph (e), the 

following is added as a second sentence: 

‘‘For the definition of ‘‘range,’’ see note 

to paragraph (a) of USML Category 

VIII.’’ In the third column, in paragraph 


tkelley on DSK3SPTVN1PROD with RULES5
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 61755 

(f)(6)(ii), ‘‘directly related to defense 

articles in this subchapter or 600 series 

items subject to the EAR’’ is added after 

‘‘software.’’ In paragraph (f)(6)(iii), ‘‘(see 

§ 120.10(a)(2) of this subchapter)’’ is 

added after ‘‘information.’’ 

§ 121.2 [Corrected] 

■ 11. On page 22758, in the first 

column, a period is placed after the 

section header. 

§ 121.3 [Corrected] 

■ 12. On page 22758, in the first 

column, in paragraph (a) introductory 

text, ‘‘USML’’ is added in between ‘‘In’’ 

and ‘‘Category.’’ In paragraph (a)(6), the 

quotation marks are removed from the 

first occurrence of ‘‘mission system’’ 

and from ‘‘system.’’ 

PART 123 [CORRECTED] 

■ 13. On page 22758, in the second 

column, ‘‘The authority citation for part 

123 is revised to read as follows’’ is 

corrected to read ‘‘The authority citation 

for part 123 continues to read as 

follows.’’ ‘‘Sec. 520, Pub. L. 112–55’’ is 

placed between ‘‘Sec. 1205(a), Pub. L. 

107–228;’’ and ‘‘Section 1261, Pub. L. 

112–239.’’ 

§ 123.9 [Corrected] 

■ 14. On page 22759, in the third 

column, in paragraph (b)(2), ‘‘(see 

§§ 120.42 and 123.1(b)’’ is corrected to 

read ‘‘(see §§ 120.42 and 123.1(b) of this 

subchapter),’’ and ‘‘submitted with the 

Department of State license or other 

approval request’’ is added between 

‘‘support documentation’’ and ‘‘the 

appropriate EAR classification.’’ 

PART 126 [CORRECTED] 

■ 15. On page 22759, at the end of 

column three, before the signature, add 

the following amendments: 

PART 126—GENERAL POLICIES AND 

PROVISIONS 

■ 20. The authority citation for part 126 

continues to read as follows: 

Authority: Secs. 2, 38, 40, 42, and 71, Pub. 

L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2780, 2791, and 2797); 22 U.S.C. 2651a; 22 

U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR, 

1994 Comp., p. 899; Sec. 1225, Pub. L. 108– 

375; Sec. 7089, Pub. L. 111–117; Pub. L. 111– 

266; Sections 7045 and 7046, Pub. L. 112–74; 

E.O. 13637, 78 FR 16129. 

■ 21. Supplement No. 1 to part 126 is 

revised to read as follows: 

SUPPLEMENT NO. 1* 

USML Category Exclusion (CA) 

§ 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

I–XXI .......................... Classified defense articles and services. See Note 1 .................................... X X X 

I–XXI .......................... Defense articles listed in the Missile Technology Control Regime (MTCR) 

Annex.

X X X 

I–XXI .......................... U.S. origin defense articles and services used for marketing purposes and 

not previously licensed for export in accordance with this subchapter.

.................... X X 

I–XXI .......................... Defense services for or technical data related to defense articles identified 

in this supplement as excluded from the Canadian exemption.

X .................... ....................

I–XXI .......................... Any transaction involving the export of defense articles and services for 

which congressional notification is required in accordance with § 123.15 

and § 124.11 of this subchapter.

X .................... ....................

I–XXI .......................... U.S. origin defense articles and services specific to developmental systems 

that have not obtained written Milestone B approval from the U.S. Department of Defense milestone approval authority, unless such export is 

pursuant to a written solicitation or contract issued or awarded by the 

U.S. Department of Defense for an end-use identified in paragraph (e)(1), 

(e)(2), or (e)(4) of § 126.16 or § 126.17 of this subchapter and is consistent with other exclusions of this supplement.

.................... X X 

I–XXI .......................... Nuclear weapons strategic delivery systems and all components, parts, accessories, and attachments specifically designed for such systems and 

associated equipment.

X .................... ....................

I–XXI .......................... Defense articles and services specific to the existence or method of compliance with anti-tamper measures, where such measures are readily identifiable, made at originating Government direction..................... X X 

I–XXI .......................... Defense articles and services specific to reduced observables or counter 

low observables in any part of the spectrum. See Note 2.

.................... X X 

I–XXI .......................... Defense articles and services specific to sensor fusion beyond that required 

for display or identification correlation. See Note 3.

.................... X X 

I–XXI .......................... Defense articles and services specific to the automatic target acquisition or 

recognition and cueing of multiple autonomous unmanned systems.

.................... X X 

I–XXI .......................... Nuclear power generating equipment or propulsion equipment (e.g., nuclear 

reactors), specifically designed for military use and components therefore, specifically designed for military use. See also § 123.20 of this subchapter.

.................... .................... X 

I–XXI .......................... Libraries (parametric technical databases) specially designed for military 

use with equipment controlled on the USML. See Note 13.

.................... .................... X 

I–XXI .......................... Defense services or technical data specific to applied research as defined 

in § 125.4(c)(3) of this subchapter, design methodology as defined in 

§ 125.4(c)(4) of this subchapter, engineering analysis as defined in 

§ 125.4(c)(5) of this subchapter, or manufacturing know-how as defined in 

§ 125.4(c)(6) of this subchapter. See Note 12.

X .................... ....................


tkelley on DSK3SPTVN1PROD with RULES5
61756 Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 

SUPPLEMENT NO. 1*—Continued 

USML Category Exclusion (CA) 

§ 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

I–XXI .......................... Defense services other than those required to prepare a quote or bid proposal in response to a written request from a department or agency of 

the United States Federal Government or from a Canadian Federal, Provincial, or Territorial Government; or defense services other than those 

required to produce, design, assemble, maintain or service a defense article for use by a registered U.S. company, or a U.S. Federal Government Program, or for end-use in a Canadian Federal, Provincial, or Territorial Government Program. See Note 14.

X .................... ....................

I .................................. Firearms, close assault weapons, and combat shotguns ............................... X .................... ....................

II(k) ............................. Software source code related to USML Category II(c), II(d), or II(i). See 

Note 4.

.................... X X 

II(k) ............................. Manufacturing know-how related to USML Category II(d). See Note 5 ......... X X X 

III ................................ Ammunition for firearms, close assault weapons, and combat shotguns listed in USML Category I.X .................... ....................

III ................................ Defense articles and services specific to ammunition and fuse setting devices for guns and armament controlled in USML Category II..................... .................... X 

III(e) ........................... Manufacturing know-how related to USML Category III(d)(1) or III(d)(2) and 

their specially designed components. See Note 5.

X X X 

III(e) ........................... Software source code related to USML Category III(d)(1) or III(d)(2). See 

Note 4.

.................... X X 

IV ............................... Defense articles and services specific to man-portable air defense systems 

(MANPADS). See Note 6.

X X X 

IV ............................... Defense articles and services specific to rockets, designed or modified for 

non-military applications that do not have a range of 300 km (i.e., not 

controlled on the MTCR Annex).

.................... .................... X 

IV ............................... Defense articles and services specific to torpedoes ....................................... .................... X X 

IV ............................... Defense articles and services specific to anti-personnel landmines. See 

Note 15.

X X X 

IV ............................... Defense articles and services specific to cluster munitions. See Note 16 ..... X X X 

IV(i) ............................ Software source code related to USML Category IV(a), IV(b), IV(c), or 

IV(g). See Note 4.

.................... X X 

IV(i) ............................ Manufacturing know-how related to USML Category IV(a), IV(b), IV(d), or 

IV(g) and their specially designed components. See Note 5.

X X X 

V ................................ The following energetic materials and related substances: ............................ .................... .................... X 

a. TATB (triaminotrinitrobenzene) (CAS 3058–38–6); 

b. Explosives controlled in USML Category V(a)(32) or V(a)(33); 

c. Iron powder (CAS 7439–89–6) with particle size of 3 micrometers or less 

produced by reduction of iron oxide with hydrogen;.

d. BOBBA–8 (bis(2-methylaziridinyl)2-(2-hydroxypropanoxy) propylamino 

phosphine oxide), and other MAPO derivatives;.

e. N-methyl-p-nitroaniline (CAS 100–15–2); or 

f. Trinitrophenylmethylni-tramine (tetryl) (CAS 479–45–8).

V(c)(7) ........................ Pyrotechnics and pyrophorics specifically formulated for military purposes to 

enhance or control radiated energy in any part of the IR spectrum.

.................... .................... X 

V(d)(3) ........................ Bis-2, 2-dinitropropylnitrate (BDNPN) ............................................................. .................... .................... X 

VI ............................... Defense articles specific to cryogenic equipment, and specially designed 

components or accessories therefor, specially designed or configured to 

be installed in a vehicle for military ground, marine, airborne or space applications, capable of operating while in motion and of producing or maintaining temperatures below 103 K (–170 °C).

.................... .................... X 

VI ............................... Defense Articles specific to superconductive electrical equipment (rotating 

machinery and transformers) specially designed or configured to be installed in a vehicle for military ground, marine, airborne, or space applications and capable of operating while in motion. This, however, does not 

include direct current hybrid homopolar generators that have single-pole 

normal metal armatures which rotate in a magnetic field produced by 

superconducting windings, provided those windings are the only superconducting component in the generator.

.................... .................... X 

VI ............................... Defense articles and services specific to naval technology and systems relating to acoustic spectrum control and awareness. See Note 10..................... X X 

VI(a) ........................... Nuclear powered vessels ................................................................................ X X X 

VI(c) ........................... Defense articles and services specific to submarine combat control systems .................... X X 

VI(d) ........................... Harbor entrance detection devices ................................................................. .................... .................... X 

VI(e) ........................... Defense articles and services specific to naval nuclear propulsion equipment. See Note 7.X X X 

VI(g) ........................... Software source code related to USML Category VI(a) or VI(c). See Note 4 .................... X X 

VII .............................. Defense articles specific to cryogenic equipment, and specially designed 

components or accessories therefor, specially designed or configured to 

be installed in a vehicle for military ground, marine, airborne or space applications, capable of operating while in motion and of producing or maintaining temperatures below 103 K (–170 °C).

.................... .................... X 


tkelley on DSK3SPTVN1PROD with RULES5
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 61757 

SUPPLEMENT NO. 1*—Continued 

USML Category Exclusion (CA) 

§ 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

VII .............................. Defense articles specific to superconductive electrical equipment (rotating 

machinery and transformers) specially designed or configured to be installed in a vehicle for military ground, marine, airborne, or space applications and capable of operating while in motion. This, however, does not 

include direct current hybrid homopolar generators that have single-pole 

normal metal armatures which rotate in a magnetic field produced by 

superconducting windings, provided those windings are the only superconducting component in the generator.

.................... .................... X 

VII .............................. Armored all wheel drive vehicles fitted with, or designed or modified to be 

fitted with, a plough or flail for the purpose of land mine clearance, other 

than vehicles specifically designed or modified for military use.

.................... .................... X 

VII(e) .......................... Amphibious vehicles ........................................................................................ .................... .................... X 

VII(f) ........................... Technical data and defense services for gas turbine engine hot sections. 

See Note 8.

X X X 

VIII ............................. Defense articles specific to cryogenic equipment, and specially designed 

components and accessories therefor, specially designed or configured to 

be installed in a vehicle for military ground, marine, airborne or space applications, capable of operating while in motion and of producing or maintaining temperatures below 103 K (-170 °C).

.................... .................... X 

VIII ............................. Defense articles specific to superconductive electrical equipment (rotating 

machinery and transformers) specially designed or configured to be installed in a vehicle for military ground, marine, airborne, or space applications and capable of operating while in motion. This, however, does not 

include direct current hybrid homopolar generators that have single-pole 

normal metal armatures which rotate in a magnetic field produced by 

superconducting windings, provided those windings are the only superconducting component in the generator.

.................... .................... X 

VIII(a) ......................... All USML Category VIII(a) items ..................................................................... X .................... ....................

VIII(f) .......................... Developmental aircraft parts, components, accessories, and attachments 

identified in USML Category VIII(f).

X .................... ....................

VIII(i) .......................... Manufacturing know-how related to USML Category VIII(a) or VIII(e), and 

specially designed parts or components therefor. See Note 5.

X X X 

VIII(i) .......................... Software source code related to USML Category VIII(a) or VIII(e). See Note 

4.

.................... X X 

IX ............................... Training or simulation equipment for Man Portable Air Defense Systems 

(MANPADS). See Note 6.

.................... X X 

IX(e) ........................... Software source code related to USML Category IX(a) or IX(b). See Note 4 .................... X X 

IX(e) ........................... Software that is both specifically designed or modified for military use and 

specifically designed or modified for modeling or simulating military operational scenarios.

.................... .................... X 

X(e) ............................ Manufacturing know-how related to USML Category X(a)(1) or X(a)(2), and 

specially designed components therefor. See Note 5.

X X X 

XI(a) ........................... Defense articles and services specific to countermeasures and countercountermeasures See Note 9..................... X X 

XI(a) ........................... High Frequency and Phased Array Microwave Radar systems, with capabilities such as search, acquisition, tracking, moving target indication, and 

imaging radar systems. See Note 17.

.................... X ....................

XI ............................... Defense articles and services specific to naval technology and systems relating to acoustic spectrum control and awareness. See Note 10..................... X X 

XI(b), XI(c), XI(d) ....... Defense articles and services specific to USML Category XI (b) (e.g., communications security (COMSEC) and TEMPEST)..................... X X 

XI(d) ........................... Software source code related to USML Category XI(a). See Note 4 ............. .................... X X 

XI(d) ........................... Manufacturing know-how related to USML Category XI(a)(3) or XI(a)(4), 

and specially designed components therefor. See Note 5.

X X X 

XII .............................. Defense articles and services specific to countermeasures and countercountermeasures. See Note 9..................... X X 

XII .............................. Defense articles and services specific to USML Category XII(c) articles, except any 1st- and 2nd-generation image intensification tubes and 1stand 2nd-generation image intensification night sighting equipment. Enditems in USML Category XII(c) and related technical data limited to basic 

operations, maintenance, and training information as authorized under 

the exemption in § 125.4(b)(5) of this subchapter may be exported directly to a Canadian Government entity (i.e., federal, provincial, territorial, 

or municipal) consistent with § 126.5, other exclusions, and the provisions 

of this subchapter.

X .................... ....................


tkelley on DSK3SPTVN1PROD with RULES5
61758 Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 

SUPPLEMENT NO. 1*—Continued 

USML Category Exclusion (CA) 

§ 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

XII .............................. Technical data or defense services for night vision equipment beyond basic 

operations, maintenance, and training data. However, the AS and UK 

Treaty exemptions apply when such export is pursuant to a written solicitation or contract issued or awarded by the U.S. Department of Defense 

for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of § 126.16 

or § 126.17 of this subchapter and is consistent with other exclusions of 

this supplement.

X X X 

XII(f) ........................... Manufacturing know-how related to USML Category XII(d) and specially designed components therefor. See Note 5.X X X 

XII(f) ........................... Software source code related to USML Category XII(a), XII(b), XII(c), or 

XII(d). See Note 4.

.................... X X 

XIII(b) ......................... Defense articles and services specific to USML Category XIII(b) (Military Information Security Assurance Systems)..................... X X 

XIII(d) ......................... Carbon/carbon billets and preforms which are reinforced in three or more 

dimensional planes, specifically designed, developed, modified, configured or adapted for defense articles.

.................... .................... X 

XIII(e) ......................... Defense articles and services specific to armored plate manufactured to 

comply with a military standard or specification or suitable for military 

use. See Note 11.

.................... .................... X 

XIII(f) .......................... Structural materials specifically designed, developed, modified, configured 

or adapted for defense articles.

.................... .................... X 

XIII(g) ......................... Defense articles and services related to concealment and deception equipment and materials..................... .................... X 

XIII(h) ......................... Energy conversion devices other than fuel cells ............................................ .................... .................... X 

XIII(i) .......................... Metal embrittling agents .................................................................................. .................... .................... X 

XIII(j) .......................... Defense articles and services related to hardware associated with the 

measurement or modification of system signatures for detection of defense articles as described in Note 2.

.................... X X 

XIII(k) ......................... Defense articles and services related to tooling and equipment specifically 

designed or modified for the production of defense articles identified in 

USML Category XIII(b).

.................... X X 

XIII(l) .......................... Software source code related to USML Category XIII(a). See Note 4 ........... .................... X X 

XIV ............................. Defense articles and services related to toxicological agents, including 

chemical agents, biological agents, and associated equipment.

.................... X X 

XIV(a), XIV(b), XIV(d), 

XIV(e), XIV(f).

Chemical agents listed in USML Category XIV(a), (d) and (e), biological 

agents and biologically derived substances in USML Category XIV(b), 

and equipment listed in USML Category XIV(f) for dissemination of the 

chemical agents and biological agents listed in USML Category XIV(a), 

(b), (d), and (e).

X .................... ....................

XV(a) .......................... Defense articles and services specific to spacecraft/satellites. However, the 

Canadian exemption may be used for commercial communications satellites that have no other type of payload.

X X X 

XV(b) .......................... Defense articles and services specific to ground control stations for spacecraft telemetry, tracking, and control. Defense articles and services are 

not excluded under this entry if they do not control the spacecraft. Receivers for receiving satellite transmissions are also not excluded under 

this entry.

.................... X X 

XV(c) .......................... Defense articles and services specific to GPS/PPS security modules .......... .................... X X 

XV(c) .......................... Defense articles controlled in USML Category XV(c) except end-items for 

end-use by the Federal Government of Canada exported directly or indirectly through a Canadian-registered person.

X .................... ....................

XV(d) .......................... Defense articles and services specific to radiation-hardened microelectronic 

circuits.

X X X 

XV(e) .......................... Anti-jam systems with the ability to respond to incoming interference by 

adaptively reducing antenna gain (nulling) in the direction of the interference.

X .................... ....................

XV(e) .......................... Antennas having any of the following: ............................................................

a. Aperture (overall dimension of the radiating portions of the antenna) 

greater than 30 feet;.

b. All sidelobes less than or equal to ¥35 dB relative to the peak of the 

main beam; or.

c. Designed, modified, or configured to provide coverage area on the surface of the earth less than 200 nautical miles in diameter, where ‘‘coverage area’’ is defined as that area on the surface of the earth that is illuminated by the main beam width of the antenna (which is the angular 

distance between half power points of the beam).

X .................... ....................

XV(e) .......................... Optical intersatellite data links (cross links) and optical ground satellite terminals.X .................... ....................

XV(e) .......................... Spaceborne regenerative baseband processing (direct up and down conversion to and from baseband) equipment.X .................... ....................


tkelley on DSK3SPTVN1PROD with RULES5
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 61759 

SUPPLEMENT NO. 1*—Continued 

USML Category Exclusion (CA) 

§ 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

XV(e) .......................... Propulsion systems which permit acceleration of the satellite on-orbit (i.e., 

after mission orbit injection) at rates greater than 0.1 g.

X .................... ....................

XV(e) .......................... Attitude control and determination systems designed to provide spacecraft 

pointing determination and control or payload pointing system control better than 0.02 degrees per axis.

X .................... ....................

XV(e) .......................... All specifically designed or modified systems, components, parts, accessories, attachments, and associated equipment for all USML Category 

XV(a) items, except when specifically designed or modified for use in 

commercial communications satellites.

X .................... ....................

XV(e) .......................... Defense articles and services specific to spacecraft and ground control station systems (only for telemetry, tracking and control as controlled in 

USML Category XV(b)), subsystems, components, parts, accessories, attachments, and associated equipment.

.................... X X 

XV(f) ........................... Technical data and defense services directly related to the other defense 

articles excluded from the exemptions for USML Category XV.

X X X 

XVI ............................. Defense articles and services specific to design and testing of nuclear 

weapons.

X X X 

XVI(c) ......................... Nuclear radiation measuring devices manufactured to military specifications X .................... ....................

XVI(e) ......................... Software source code related to USML Category XVI(c). See Note 4 .......... .................... X X 

XVII ............................ Classified articles, and technical data and defense services relating thereto, 

not elsewhere enumerated. See Note 1.

X X X 

XVIII ........................... Defense articles and services specific to directed energy weapon systems .................... X X

XIX(e), XIX(f)(1), 

XIX(f)(2), XIX(g).

Defense articles and services specific to gas turbine engine hot section 

components and to Full Authority Digital Engine Control Systems 

(FADEC) or Digital Electronic Engine Controls (DEEC). See Note 8.

.................... X X 

XIX(g) ......................... Technical data and defense services for gas turbine engine hot sections. 

(This does not include hardware). See Note 8.

X X X 

XX .............................. Defense articles and services related to submersible vessels, oceanographic, and associated equipment.X X X 

XXI ............................. Articles, and technical data and defense services relating thereto, not otherwise enumerated on the USML, but placed in this category by the Director, Office of Defense Trade Controls Policy.X X X 

NOTE 1: Classified defense articles and services are not eligible for export under the Canadian exemptions. U.S. origin articles, technical data, 

and services controlled in USML Category XVII are not eligible for export under the UK Treaty exemption. U.S. origin classified defense articles 

and services are not eligible for export under either the UK or AS Treaty exemptions except when being released pursuant to a U.S. Department 

of Defense written request, directive, or contract that provides for the export of the defense article or service. 

NOTE 2: The phrase ‘‘any part of the spectrum’’ includes radio frequency (RF), infrared (IR), electro-optical, visual, ultraviolet (UV), acoustic, 

and magnetic. Defense articles related to reduced observables or counter reduced observables are defined as: 

(a) Signature reduction (radio frequency (RF), infrared (IR), Electro-Optical, visual, ultraviolet (UV), acoustic, magnetic, RF emissions) of defense platforms, including systems, subsystems, components, materials (including dual-purpose materials used for Electromagnetic Interference 

(EM) reduction), technologies, and signature prediction, test and measurement equipment and software and material transmissivity/reflectivity 

prediction codes and optimization software. 

(b) Electronically scanned array radar, high power radars, radar processing algorithms, periscope-mounted radar systems (PATRIOT), LADAR, 

multistatic and IR focal plane array-based sensors, to include systems, subsystems, components, materials, and technologies. 

NOTE 3: Defense Articles related to sensor fusion beyond that required for display or identification correlation is defined as techniques designed to automatically combine information from two or more sensors/sources for the purpose of target identification, tracking, designation, or 

passing of data in support of surveillance or weapons engagement. Sensor fusion involves sensors such as acoustic, infrared, electro optical, frequency, etc. Display or identification correlation refers to the combination of target detections from multiple sources for assignment of common 

target track designation. 

NOTE 4: Software source code beyond that source code required for basic operation, maintenance, and training for programs, systems, and/or 

subsystems is not eligible for use of the UK or AS Treaty exemptions, unless such export is pursuant to a written solicitation or contract issued or 

awarded by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of § 126.16 or § 126.17 of this subchapter and is consistent with other exclusions of this supplement. 

NOTE 5: Manufacturing know-how, as defined in § 125.4(c)(6) of this subchapter, is not eligible for use of the UK or AS Treaty exemptions, unless such export is pursuant to a written solicitation or contract issued or awarded by the U.S. Department of Defense for an end-use identified in 

paragraph (e)(1), (e)(2), or (e)(4) of § 126.16 or § 126.17 of this subchapter and is consistent with other exclusions of this supplement. 

NOTE 6: Defense Articles specific to Man Portable Air Defense Systems (MANPADS) includes missiles which can be used without modification 

in other applications. It also includes production and test equipment and components specifically designed or modified for MANPAD systems, as 

well as training equipment specifically designed or modified for MANPAD systems. 

NOTE 7: Naval nuclear propulsion plants includes all of USML Category VI(e). Naval nuclear propulsion information is technical data that concerns the design, arrangement, development, manufacture, testing, operation, administration, training, maintenance, and repair of the propulsion 

plants of naval nuclear-powered ships and prototypes, including the associated shipboard and shore-based nuclear support facilities. Examples 

of defense articles covered by this exclusion include nuclear propulsion plants and nuclear submarine technologies or systems; nuclear powered 

vessels (see USML Categories VI and XX). 

NOTE 8: A complete gas turbine engine with embedded hot section components or digital engine controls is eligible for export or transfer under 

the Treaties. Technical data, other than required for routine external maintenance and operation, related to the hot section is not eligible for export under the Canadian exemption. Technical data, other than required for routine external maintenance and operation, related to the hot section or digital engine controls, as well as individual hot section parts or components are not eligible for the Treaty exemption whether shipped 

separately or accompanying a complete engine. Gas turbine engine hot section exempted defense article components and technology are combustion chambers and liners; high pressure turbine blades, vanes, disks and related cooled structure; cooled low pressure turbine blades, vanes, 

disks and related cooled structure; cooled augmenters; and cooled nozzles. Examples of gas turbine engine hot section developmental technologies are Integrated High Performance Turbine Engine Technology (IHPTET), Versatile, Affordable Advanced Turbine Engine (VAATE), and 

Ultra-Efficient Engine Technology (UEET), which are also excluded from export under the exemptions. 

NOTE 9: Examples of countermeasures and counter-countermeasures related to defense articles not exportable under the AS or UK Treaty exemptions are: 


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61760 Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 

(a) IR countermeasures; 

(b) Classified techniques and capabilities; 

(c) Exports for precision radio frequency location that directly or indirectly supports fire control and is used for situation awareness, target identification, target acquisition, and weapons targeting and Radio Direction Finding (RDF) capabilities. Precision RF location is defined as angle of 

arrival accuracy of less than five degrees (RMS) and RF emitter location of less than ten percent range error; 

(d) Providing the capability to reprogram; and 

(e) Acoustics (including underwater), active and passive countermeasures, and counter-countermeasures. 

NOTE 10: Examples of defense articles covered by this exclusion include underwater acoustic vector sensors; acoustic reduction; off-board, 

underwater, active and passive sensing, propeller/propulsor technologies; fixed mobile/floating/powered detection systems which include in-buoy 

signal processing for target detection and classification; autonomous underwater vehicles capable of long endurance in ocean environments 

(manned submarines excluded); automated control algorithms embedded in on-board autonomous platforms which enable (a) group behaviors 

for target detection and classification, (b) adaptation to the environment or tactical situation for enhancing target detection and classification; ‘‘intelligent autonomy’’ algorithms which define the status, group (greater than 2) behaviors, and responses to detection stimuli by autonomous, underwater vehicles; and low frequency, broad-band ‘‘acoustic color,’’ active acoustic ‘‘fingerprint’’ sensing for the purpose of long range, single 

pass identification of ocean bottom objects, buried or otherwise (controlled under Category USML XI(a)(1), (a)(2), (b), (c), and (d)). 

NOTE 11: This exclusion does not apply to the platforms (e.g., vehicles) for which the armored plates are applied. For exclusions related to the 

platforms, reference should be made to the other exclusions in this list, particularly for the category in which the platform is controlled. 

The excluded defense articles include constructions of metallic or non-metallic materials or combinations thereof specially designed to provide 

protection for military systems. The phrase ‘‘suitable for military use’’ applies to any articles or materials which have been tested to level IIIA or 

above IAW NIJ standard 0108.01 or comparable national standard. This exclusion does not include military helmets, body armor, or other protective garments which may be exported IAW the terms of the AS or UK Treaty. 

NOTE 12: Defense services or technical data specific to applied research (§ 125.4(c)(3) of this subchapter), design methodology (§ 125.4(c)(4) 

of this subchapter), engineering analysis (§ 125.4(c)(5) of this subchapter), or manufacturing know-how (§ 125.4(c)(6) of this subchapter) are not 

eligible for export under the Canadian exemptions. However, this exclusion does not include defense services or technical data specific to buildto-print as defined in § 125.4(c)(1) of this subchapter, build/design-to-specification as defined in § 125.4(c)(2) of this subchapter, or basic research 

as defined in § 125.4(c)(3) of this subchapter, or maintenance (i.e., inspection, testing, calibration or repair, including overhaul, reconditioning and 

one-to-one replacement of any defective items parts or components, but excluding any modification, enhancement, upgrade or other form of alteration or improvement that changes the basic performance of the item) of non-excluded defense articles which may be exported subject to 

other exclusions or terms of the Canadian exemptions. 

NOTE 13: The term ‘‘libraries’’ (parametric technical databases) means a collection of technical information of a military nature, reference to 

which may enhance the performance of military equipment or systems. 

NOTE 14: In order to utilize the authorized defense services under the Canadian exemption, the following must be complied with: 

(a) The Canadian contractor and subcontractor must certify, in writing, to the U.S. exporter that the technical data and defense services being 

exported will be used only for an activity identified in Supplement No. 1 to part 126 of this subchapter and in accordance with § 126.5 of this subchapter; and 

(b) A written arrangement between the U.S. exporter and the Canadian recipient must: 

(1) Limit delivery of the defense articles being produced directly to an identified manufacturer in the United States registered in accordance 

with part 122 of this subchapter; a department or agency of the United States Federal Government; a Canadian-registered person authorized in 

writing to manufacture defense articles by and for the Government of Canada; a Canadian Federal, Provincial, or Territorial Government; 

(2) Prohibit the disclosure of the technical data to any other contractor or subcontractor who is not a Canadian-registered person; 

(3) Provide that any subcontract contain all the limitations of § 126.5 of this subchapter; 

(4) Require that the Canadian contractor, including subcontractors, destroy or return to the U.S. exporter in the United States all of the technical data exported pursuant to the contract or purchase order upon fulfillment of the contract, unless for use by a Canadian or United States 

Government entity that requires in writing the technical data be maintained. The U.S. exporter must be provided written certification that the technical data is being retained or destroyed; and 

(5) Include a clause requiring that all documentation created from U.S. origin technical data contain the statement that, ‘‘This document contains technical data, the use of which is restricted by the U.S. Arms Export Control Act. This data has been provided in accordance with, and is 

subject to, the limitations specified in § 126.5 of the International Traffic in Arms Regulations (ITAR). By accepting this data, the consignee 

agrees to honor the requirements of the ITAR.’’ 

(c) The U.S. exporter must provide the Directorate of Defense Trade Controls a semi-annual report of all their on-going activities authorized 

under § 126.5 of this subchapter. The report shall include the article(s) being produced; the end-user(s); the end-item into which the product is to 

be incorporated; the intended end-use of the product; the name and address of all the Canadian contractors and subcontractors. 

NOTE 15: This exclusion does not apply to demining equipment in support of the clearance of landmines and unexploded ordnance for humanitarian purposes. As used in this exclusion, ‘‘anti-personnel landmine’’ means any mine placed under, on, or near the ground or other surface 

area, or delivered by artillery, rocket, mortar, or similar means or dropped from an aircraft and which is designed to be detonated or exploded by 

the presence, proximity, or contact of a person; any device or material which is designed, constructed, or adapted to kill or injure and which functions unexpectedly when a person disturbs or approaches an apparently harmless object or performs an apparently safe act; any manually-emplaced munition or device designed to kill, injure, or damage and which is actuated by remote control or automatically after a lapse of time. 

NOTE 16: The cluster munitions that are subject to this exclusion are set forth below: 

The Convention on Cluster Munitions, signed December 3, 2008, and entered into force on August 1, 2010, defines a ‘‘cluster munition’’ as: 

A conventional munition that is designed to disperse or release explosive submunitions each weighing less than 20 kilograms, and includes 

those explosive submunitions. Under the Convention, a ‘‘cluster munition’’ does not include the following munitions: 

(a) A munition or submunition designed to dispense flares, smoke, pyrotechnics or chaff; or a munition designed exclusively for an air defense 

role; 

(b) A munition or submunition designed to produce electrical or electronic effects; 

(c) A munition that, in order to avoid indiscriminate area effects and the risks posed by unexploded submunitions, has all of the following characteristics: 

(1) Each munition contains fewer than ten explosive submunitions; 

(2) Each explosive submunition weighs more than four kilograms; 

(3) Each explosive submunition is designed to detect and engage a single target object; 

(4) Each explosive submunition is equipped with an electronic self-destruction mechanism; and 

(5) Each explosive submunition is equipped with an electronic self-deactivating feature. 

Pursuant to U.S. law (Pub. L. 111–117, section 7055(b)), no military assistance shall be furnished for cluster munitions, no defense export license for cluster munitions may be issued, and no cluster munitions or cluster munitions technology shall be sold or transferred, unless: 

(a) The submunitions of the cluster munitions, after arming, do not result in more than 1 percent unexploded ordnance across the range of intended operational environments; and 

(b) The agreement applicable to the assistance, transfer or sale of such cluster munitions or cluster munitions technology specifies that the 

cluster munitions will only be used against clearly defined military targets and will not be used where civilians are known to be present or in 

areas normally inhabited by civilians. 

NOTE 17: The radar systems described are controlled in USML Category XI(a)(3)(i) through (v). As used in this entry, the term ‘‘systems’’ includes equipment, devices, software, assemblies, modules, components, practices, processes, methods, approaches, schema, frameworks, and 

models. 

* An ‘‘X’’ in the chart indicates that the item is excluded from use under the exemption referenced in the top of the column. An item excluded 

in any one row is excluded regardless of whether other rows may contain a description that would include the item. 


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Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Rules and Regulations 61761 

Rose E. Gottemoeller, 

Acting Under Secretary, Arms Control and 

International Security, Department of State. 

[FR Doc. 2013–24235 Filed 10–2–13; 8:45 am] 

BILLING CODE 4710–25–P 


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