This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

729 

Vol. 87, No. 4 

Thursday, January 6, 2022 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 774 

[Docket No. 211222–0267] 

RIN 0694–AH89 

Export Control Classification Number 

0Y521 Series Supplement—Extension 

of Controls on an Emerging 

Technology (Software Specially 

Designed To Automate the Analysis of 

Geospatial Imagery Classification) 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Interim final rule; technical 

amendment. 

SUMMARY: On January 6, 2020, the 

Bureau of Industry and Security (BIS) 

amended the Export Administration 

Regulations (EAR) to add Software 

Specially Designed to Automate the 

Analysis of Geospatial Imagery to the 

0Y521 Temporary Export Control 

Classification Numbers (ECCN) Series as 

0D521. BIS first extended controls on 

this emerging technology for a second 

year pursuant to the 0Y521 series 

extension procedures on January 6, 

2021, and in this action extends these 

controls a second time for an additional 

year for a total of three years of this 

control since it was added to the EAR 

on January 6, 2020. 

DATES: This rule is effective January 6, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

Aaron Amundson, Director, Information 

Technology Division, Office of National 

Security and Technology Transfer 

Controls, at email Aaron.Amundson@

bis.doc.gov or by phone at (202) 482– 

5299. 

SUPPLEMENTARY INFORMATION: 

Background 

On January 6, 2020, the Bureau of 

Industry and Security (BIS) amended 

the Export Administration Regulations 

(EAR) with an interim final rule to add 

an emerging technology—Software 

Specially Designed to Automate the 

Analysis of Geospatial Imagery—to the 

0Y521 Temporary Export Control 

Classification Numbers (ECCN) Series as 

0D521. (85 FR 459, January 6, 2020). 

More specifically, the software was 

described as Geospatial imagery 

‘‘software’’ ‘‘specially designed’’ for 

training a Deep Convolutional Neural 

Network to automate the analysis of 

geospatial imagery and point clouds. 

The following year, BIS extended that 

status for a year. (86 FR 461, January 6, 

2021). These actions are consistent with 

Section 1758 (50 U.S.C. 4801) of the 

Export Control Reform Act of 2018 

(ECRA), which requires the Department 

of Commerce to establish appropriate 

controls on the export, reexport, or 

transfer (in-country) of emerging and 

foundational technologies. 

BIS established the ECCN 0Y521 

series (April 13, 2012, 72 FR 22191) to 

identify items that warrant control on 

the Commerce Control List (CCL) but are 

not yet identified in an existing ECCN. 

Items in the 0Y521 series of ECCNs are 

added upon a determination by the 

Department of Commerce, with the 

concurrence of the Departments of 

Defense and State, and other agencies as 

appropriate, that the items warrant 

control for export because the items may 

provide a significant military or 

intelligence advantage to the United 

States or because foreign policy reasons 

justify control. The ECCN 0Y521 series 

is a temporary holding classification. 

Under the procedures set forth in 

Section 742.6(a)(8)(iii) of the EAR, items 

classified under ECCN 0Y521 remain so 

classified for one year from the date 

they are listed in supplement no. 5 to 

part 774 of the EAR, unless the items are 

re-classified under a different ECCN or 

the 0Y521 classification is extended. 

BIS may extend an item’s ECCN 0Y521 

classification for two one-year periods, 

provided that the U.S. Government has 

submitted a proposal to the relevant 

multilateral regime(s) (e.g., the 

Wassenaar Arrangement) to obtain 

multilateral controls over the item, with 

the understanding that multilateral 

controls are preferable when practical. 

Further extension beyond three years 

may occur only if the Under Secretary 

for Industry and Security makes a 

determination that such extension is in 

the national security or foreign policy 

interest of the United States. Any 

extension or re-extension of control of 

an ECCN 0Y521 item, including the 

determination by the Under Secretary, 

shall be published in the Federal 

Register. 

In this action, BIS extends the status 

of an item classified under a 0Y521 

ECCN for a second time for an 

additional year, for a total of three years 

of this control since it was added to the 

EAR on January 6, 2020, consistent with 

procedures that allow such an 

extension. Specifically, in this case the 

U.S. Government submitted a proposal 

for multilateral control of software 

specially designed to automate the 

analysis of geospatial imagery, as 

described in the January 6, 2020 interim 

final rule and in ECCN 0D521, to the 

relevant multilateral regime (the 

Wassenaar Arrangement) in a timely 

manner, within the first year of the 

item’s 0D521 classification. However, 

due to the pandemic, the Wassenaar 

Arrangement did not formally convene 

in 2020 and therefore was unable to 

consider acceptance of the proposal. 

Therefore, BIS published the first 

extension of this 0Y521 control on 

January 6, 2021. However, the 

Wassenaar Arrangement’s limited 

deliberations in 2021 due to the 

pandemic did not allow for sufficient 

discussion of this proposal. An 

additional extension of time is 

appropriate in order for the U.S. 

Government to continue its effort at the 

Wassenaar Arrangement in 2022, and is 

consistent with the requirements of 

Section 1758(c) of ECRA. 

Export Control Reform Act of 2018 

On August 13, 2018, the President 

signed into law the John S. McCain 

National Defense Authorization Act for 

Fiscal Year 2019, which included the 

Export Control Reform Act of 2018 

(ECRA) (50 U.S.C. 4801–4852) that 

provides the legal basis for BIS’s 

principal authorities and serves as the 

authority under which BIS issues this 

rule. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 


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730 Federal Register / Vol. 87, No. 4 / Thursday, January 6, 2022 / Rules and Regulations 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This interim final rule has 

been designated to be not significant for 

purposes of Executive Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor is subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

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

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

information displays a currently valid 

OMB control number. This rule does not 

involve any collection of information. 

3. This rule does not contain policies 

associated with Federalism as that term 

is defined under Executive Order 13132. 

4. Pursuant to section 1762 of ECRA 

(see 50 U.S.C. 4821), this action is 

exempt from the Administrative 

Procedure Act requirements (under 5 

U.S.C. 553) for notice of proposed 

rulemaking, opportunity for public 

participation, and delay in effective 

date. This rule only updates 

Supplement No. 5 to Part 774 to the 

EAR by extending the date of the period 

of validity of 0D521 software in 

Supplement No. 5 to Part 774 for one 

year. This revision is merely technical 

and in accordance with established 

0Y521 ECCN series procedure and 

purpose, which was proposed to the 

public and subject of comment. This 

rule clarifies information, which serves 

to avoid confusing readers about the 

0D521 item’s status. It does not alter any 

right, obligation or prohibition that 

applies to any person under the EAR. 

5. Because a notice of proposed 

rulemaking and an opportunity for 

public comment are not required to be 

given for this rule by 5 U.S.C. 553, or 

by any other law, the analytical 

requirements of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., are 

not applicable. Accordingly, no 

regulatory flexibility analysis is 

required, and none has been prepared. 

List of Subjects in 15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, part 774 of the Export 

Administration Regulations (15 CFR 

parts 730 through 774) is amended as 

follows: 

PART 774—THE COMMERCE 

CONTROL LIST 

■ 1. The authority citation for part 774 

continues to read as follows: 

Authority: 50 U.S.C. 4801–4852; 50 U.S.C. 

4601 et seq.; 50 U.S.C. 1701 et seq.; 10 U.S.C. 

8720; 10 U.S.C. 8730(e); 22 U.S.C. 287c, 22 

U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 

2139a; 15 U.S.C. 1824; 50 U.S.C. 4305; 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. 

Supplement No. 5 to Part 774 

[Amended] 

■ 2. In Supplement No. 5 to part 774, 

amend the table under section ‘‘0D521. 

Software’’ by revising entry No 1. to 

read as follows: 

Supplement No. 5 to Part 774—Items 

Classified Under ECCNS 0A521, 0B521, 

0C521, 0D521 and 0E521 

* * * * * 

Item descriptor .............................................................................

Note: The description must match by model number or a 

broader descriptor that does not necessarily need to be 

company specific.

Date of initial or subsequent BIS classification.

(ID = initial date; SD = 

subsequent date).

Date when the item will 

be designated EAR99, 

unless reclassified in 

another ECCN or the 

0Y521 classification is 

reissued.

Item-specific license exception eligibility. 

* * * * * * * 

0D521. Software. 

No. 1 Geospatial imagery ‘‘software’’ ‘‘specially designed’’ for 

training a Deep Convolutional Neural Network to automate 

the analysis of geospatial imagery and point clouds, and 

having all of the following: 

January 6, 2020 (ID) ..... January 6, 2023 ............ License Exception GOV 

under § 740.11(b)(2)(ii) 

only. 

1. Provides a graphical user interface that enables the user to 

identify objects (e.g., vehicles, houses, etc.) from within 

geospatial imagery and point clouds in order to extract positive and negative samples of an object of interest; 

2. Reduces pixel variation by performing scale, color, and rotational normalization on the positive samples; 

3. Trains a Deep Convolutional Neural Network to detect the 

object of interest from the positive and negative samples; 

and 

4. Identifies objects in geospatial imagery using the trained 

Deep Convolutional Neural Network by matching the rotational pattern from the positive samples with the rotational 

pattern of objects in the geospatial imagery. 

Technical Note: A point cloud is a collection of data points defined by a given coordinate system. A point cloud is also 

known as a digital surface model. 

*******


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Federal Register / Vol. 87, No. 4 / Thursday, January 6, 2022 / Rules and Regulations 731 

Thea D. Rozman Kendler, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2021–28444 Filed 1–5–22; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

Office of Investment Security 

31 CFR Part 800 

Determination Regarding Excepted 

Foreign States 

AGENCY: Office of Investment Security, 

Department of the Treasury. 

ACTION: Determination. 

SUMMARY: The Department of the 

Treasury, as Chair of the Committee on 

Foreign Investment in the United States, 

is publishing the Committee’s 

determination that two foreign states 

have established and are effectively 

utilizing a robust process to analyze 

foreign investments for national security 

risks and to facilitate coordination with 

the United States on matters relating to 

investment security. 

DATES: Effective January 5, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Laura Black, Director of Investment 

Security Policy and International 

Relations, at U.S. Department of the 

Treasury, 1500 Pennsylvania Avenue 

NW, Washington, DC 20220; telephone: 

(202) 622–3425; email: CFIUS.FIRRMA@

treasury.gov. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

The list of excepted foreign states and 

additional information with respect to 

the Committee on Foreign Investment in 

the United States (CFIUS or the 

Committee) are available on the 

Committee’s section of the Department 

of the Treasury website. 

Notice of CFIUS Action 

The Committee, taking into 

consideration the factors identified on 

the Committee’s section of the 

Department of the Treasury website, has 

determined, under the authority of 

section 721 of the Defense Production 

Act of 1950, as amended, and 31 CFR 

800.1001(a), that: (1) Australia has 

established and is effectively utilizing a 

robust process to analyze foreign 

investments for national security risks 

and to facilitate coordination with the 

United States on matters relating to 

investment security; and (2) Canada has 

established and is effectively utilizing a 

robust process to analyze foreign 

investments for national security risks 

and to facilitate coordination with the 

United States on matters relating to 

investment security. 

This determination satisfies the 

second criterion in the definition of 

excepted foreign state under 31 CFR 

800.218 with respect to Australia and 

Canada. Therefore, Australia and 

Canada are and will remain excepted 

foreign states absent further Committee 

action and notice in the Federal 

Register. 

Larry McDonald, 

Acting Assistant Secretary for International 

Markets. 

[FR Doc. 2021–28598 Filed 1–5–22; 8:45 am] 

BILLING CODE 4810–AK–P 

DEPARTMENT OF THE TREASURY 

Office of Investment Security 

31 CFR Parts 800 and 802 

Certain Investments in the United 

States by Foreign Persons and Certain 

Transactions by Foreign Persons 

Involving Real Estate in the United 

States 

AGENCY: Office of Investment Security, 

Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: This final rule adopts without 

change the proposed rule modifying the 

definitions of ‘‘excepted foreign state’’ 

and ‘‘excepted real estate foreign state’’ 

by extending by one year the effective 

date of one of two criteria set forth in 

the definitions in the regulations 

implementing certain provisions of 

Section 721 of the Defense Production 

Act of 1950, as amended. 

DATES: This final rule is effective on 

February 4, 2022. 

FOR FURTHER INFORMATION CONTACT: For 

questions about this rule, contact: Laura 

Black, Director of Investment Security 

Policy and International Relations, 

Meena R. Sharma, Deputy Director of 

Investment Security Policy and 

International Relations, or Richard 

Rowe, Senior Policy Advisor, at U.S. 

Department of the Treasury, 1500 

Pennsylvania Avenue NW, Washington, 

DC 20220; telephone: (202) 622–3425; 

email: CFIUS.FIRRMA@treasury.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Definitions of Excepted Foreign State 

and Excepted Real Estate Foreign 

State—Sections 800.218 and 802.214 

On November 15, 2021, the 

Department of the Treasury (Treasury 

Department) published a proposed rule 

amending the definitions of ‘‘excepted 

foreign state’’ and ‘‘excepted real estate 

foreign state’’ in 31 CFR part 800 and 31 

CFR part 802, respectively. 86 FR 62978. 

These terms operate together with other 

relevant terms to provide an exception 

from the jurisdiction of the Committee 

on Foreign Investment in the United 

States (CFIUS or the Committee) over 

covered investments by certain foreign 

persons who meet specific criteria 

establishing sufficiently close ties to 

certain foreign states, as well as certain 

other provisions of the Foreign 

Investment Risk Review Modernization 

Act of 2018. 

The preamble to the proposed rule 

provides background on CFIUS’s 

statutory authority and the rationale for 

these definitional changes. The public 

was provided an opportunity to 

comment on the proposed rule and 

comments were due by December 10, 

2021. The Treasury Department 

received two comments prior to the 

deadline, which are described in the 

next section. 

B. Excepted Foreign States and 

Excepted Real Estate Foreign States 

As described in the preamble to the 

proposed rule, ‘‘excepted foreign state’’ 

and ‘‘excepted real estate foreign state’’ 

are each defined by a two-criteria 

conjunctive test, with delayed 

effectiveness for the second criterion. 

This second criterion is a Committee 

determination under § 800.1001(a) for 

each eligible foreign state that it has 

established and ‘‘is effectively utilizing’’ 

a robust process to analyze foreign 

investments for national security risks 

and to facilitate coordination with the 

United States on matters relating to 

investment security, and a Committee 

determination under § 802.1001(a) for 

each eligible foreign state that it has 

‘‘made significant progress’’ toward 

establishing and effectively utilizing the 

robust process that is described in 

§ 800.1001. The final rule extends the 

effectiveness of the second criterion 

with respect to each definition. Instead 

of becoming effective on February 13, 

2022, each such second criterion will 

become effective on February 13, 2023. 

II. Summary of Comments 

During the public comment period, 

the Treasury Department received two 

comments to the proposed rule. The 

Treasury Department considered each 

submitted comment. All comments 

received by the end of the comment 

period are available on the public 

rulemaking docket at https://

www.regulations.gov and addressed 

herein. 


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