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. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

76867 

Vol. 79, No. 246 

Tuesday, December 23, 2014 

DEPARTMENT OF AGRICULTURE 

Natural Resources Conservation 

Service 

Commodity Credit Corporation 

7 CFR Part 1470 

[Docket No. NRCS–2014–0008] 

RIN 0578–AA63 

Conservation Stewardship Program 

(CSP) Interim Rule 

AGENCY: Natural Resources 

Conservation Service (NRCS) and the 

Commodity Credit Corporation (CCC), 

United States Department of 

Agriculture. 

ACTION: Interim final rule; extension of 

comment period. 

SUMMARY: NRCS and CCC published an 

interim final rule amending the existing 

regulation for the Conservation 

Stewardship Program with request for 

comment, with a comment period 

ending January 5, 2015. This document 

extends the comment period. 

DATES: The comment period for the 

interim final rule for CSP (79 FR 65836, 

Nov. 5, 2014) is hereby extended until 

January 20, 2015. 

ADDRESSES: You may submit comments 

(identified by Docket No. NRCS–2014– 

0008) using one of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments 

for Docket No. NRCS–2014–0008. 

• U.S. mail or hand delivery: Public 

Comments Processing, Attn: Docket No. 

NRCS–2014–0008, Regulatory and 

Agency Policy Team, Strategic Planning 

and Accountability, U.S. Department of 

Agriculture, NRCS, 5601 Sunnyside 

Avenue, Building 1–1112D, Beltsville, 

Maryland 20705. 

NRCS will post all comments on http:// 

www.regulations.gov. If your comment 

includes your address, telephone 

number, email address, or other 

personal identifying information, please 

be aware that your entire comment, 

including this personal information, 

will be made publicly available. Do not 

include personal information with your 

comment submission if you do not want 

for it to be made public. 

FOR FURTHER INFORMATION CONTACT: 

Director, Financial Assistance Programs 

Division, U.S. Department of 

Agriculture, NRCS, P.O. Box 2890, 

Washington, DC 20013–2890. Phone: 

(202) 720–1845. Fax: (202) 720–4265. 

SUPPLEMENTARY INFORMATION: The Food, 

Conservation, and Energy Act of 2008 

Act (2008 Act) amended the Food 

Security Act of 1985 (1985 Act) to 

establish the Conservation Stewardship 

Program (CSP) and authorize the 

program in FY 2009 through FY 2012. 

The Agricultural Appropriations Act of 

2012 extended the program through FY 

2014. The Agriculture Act of 2014 (the 

2014 Act) reauthorizes and revises CSP, 

and extends the program through FY 

2018. The purpose of CSP is to 

encourage producers to address priority 

resource concerns and improve and 

conserve the quality and condition of 

the natural resources in a 

comprehensive manner by: 

(1) Undertaking additional 

conservation activities; and 

(2) improving, maintaining, and 

managing existing conservation 

activities. The Secretary of Agriculture 

delegated authority to the Chief, NRCS, 

to administer CSP. 

This action extends the comment 

period on the Interim Rule published on 

November 5, 2014, to ensure that the 

public has sufficient time to comment 

on the Interim Rule. 

Signed this 15th day of December, 2014, in 

Washington, DC. 

Jason A. Weller, 

Vice President, Commodity Credit 

Corporation and Chief, Natural Resources 

Conservation Service. 

[FR Doc. 2014–29982 Filed 12–22–14; 8:45 am] 

BILLING CODE 3410–16–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 738, 740, 742, and 774 

[Docket No. 141107937–4937–01] 

RIN 0694–AG33 

Revision to the Export Administration 

Regulations: Controls on Electronic 

Commodities; Exports and Reexports 

to Hong Kong 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This rule amends the Export 

Administration Regulations (EAR) to 

expand controls for national security 

reasons and responds to public 

comments solicited by a Bureau of 

Industry and Security (BIS) notice of 

inquiry regarding the proper export 

control classification of certain 

electronic commodities and a type of 

radar. Specifically, in this rule, BIS 

amends the EAR to expand national 

security controls on certain electronic 

commodities controlled on the 

Commerce Control List (CCL) and to 

limit license exceptions for these items. 

This rule also expands license 

requirements for exports and reexports 

to Hong Kong of items controlled for 

national security reasons. 

DATES: Effective date: This rule is 

effective December 23, 2014, except that 

the revision of the Related Controls 

paragraph under the List of Items 

Controlled section in ECCN 3E001, 

Supplement No. 1 to part 774, is 

effective December 30, 2014. 

FOR FURTHER INFORMATION CONTACT: 

With respect to electronic components, 

contact Brian Baker, Office of National 

Security and Technology Transfer 

Controls, Electronics and Materials 

Division, at 202–482–5534. With respect 

to the U.S. government’s export control 

policy for Hong Kong, contact Steven 

Schrader, Office of Nonproliferation and 

Treaty Compliance, Foreign Policy 

Division, at 202–482–1338. 

SUPPLEMENTARY INFORMATION: 

Background 

This rule amends the Export 

Administration Regulations (EAR) to 

expand controls for national security 

reasons and responds to public 

comments solicited by a Bureau of 


tkelley on DSK3SPTVN1PROD with RULES
76868 Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Rules and Regulations 

Industry and Security (BIS) notice of 

inquiry regarding the proper export 

control classification of certain 

electronic commodities and a type of 

radar. Specifically, in this rule, BIS 

amends the EAR to expand national 

security controls on certain electronic 

commodities controlled on the 

Commerce Control List (CCL) and to 

limit license exceptions for these items. 

This rule also expands license 

requirements for exports and reexports 

to Hong Kong of items controlled for 

national security reasons. 

Electronic Components 

Notice of Inquiry: Comment Summary 

and BIS Response 

On July 1, 2014, BIS and the 

Department of State published final 

rules related to military electronics to 

take effect on December 30, 2014 (see 79 

FR 37551 and 79 FR 37536) (herein the 

‘‘BIS July 1 Military Electronics Rule’’ 

and the ‘‘Department of State July 1 

Military Electronics Rule’’). On the same 

day, BIS published a notice of inquiry 

(79 FR 37547) seeking additional 

comments on the proper export control 

classification of microwave monolithic 

integrated circuit (MMIC) power 

amplifiers, discrete microwave 

transistors, and bi-static and multi-static 

radar that exploits greater than 125 kHz 

bandwidth and is lower than 2 GHz 

center frequency to passively detect or 

track using radio frequency (RF) 

transmissions (e.g., commercial radio or 

television stations). 

The notice of inquiry set forth the 

parameters adopted by the Wassenaar 

Arrangement 2013 plenary meeting for 

including MMIC power amplifiers and 

discrete microwave transistors on its 

Dual-Use List. Those parameters are 

found in Export Control Classification 

Number (ECCN) 3A001 paragraphs .b.2 

and .b.3. The BIS July 1 Military 

Electronics Rule adopted additional 

parameters that, if met, would move the 

MMIC power amplifier or discrete 

microwave transistor from ECCN 3A001 

to the ‘‘600 series’’ ECCN 3A611, and 

corresponding technology controls to 

3E611. The notice sought comments on 

the appropriateness of the factors used 

to distinguish devices to be controlled 

under ECCN 3A611 from those 

controlled under ECCN 3A001. 

The Department of State July 1 

Military Electronics Rule placed bistatic and multi-static radar that exploits 

greater than 125 kHz bandwidth and is 

lower than 2 GHz center frequency to 

passively detect or track using radio 

frequency (RF) transmissions (e.g., 

commercial radio or television stations) 

in USML Category XI(a)(3)(xxvii). The 

notice of inquiry sought comments on 

whether such radars are in fact in use 

in civil air traffic control, collision 

avoidance or weather radar in sufficient 

quantities to justify moving such radar 

to the CCL. 

BIS received comments from eight 

parties. Six addressed MMIC power 

amplifiers or discrete microwave 

transistors or both. One commenter 

addressed passive radar and one 

commenter addressed the impact that 

regulations not administered by BIS 

have on his business. 

Comments Related to Use of MMIC 

Power Amplifiers and/or Discrete 

Microwave Transistors in Civil 

Applications and Impact of 3A611 

Control on U.S. Manufacturers 

The commenters generally opined 

that classifications in the BIS July 1 

Military Electronics Rule would 

increase costs and impose delays in 

shipping for U.S. manufacturers. The 

commenters cited a number of civil uses 

for MMIC power amplifiers and discrete 

microwave transistors that would be 

controlled in ECCN 3A611 under the 

BIS July 1 Military Electronics Rule to 

become effective on December 30, 2014. 

The civil uses that they cited are: 

• Cellular communications 

applications including 

Æ Point to point radios 

Æ Cellular backhaul 

Æ LTE infrastructure 

• WiMax 

• Ground to satellite communications 

Æ Block up converters and solid state 

power amplifiers 

Æ Direct internet access via satellite 

for individual customers 

Æ Satellite access for WiFi aboard 

commercial airliners 

Æ Very small aperture terminals 

(VSAT) mainly for business data 

networks 

• Test equipment for 

telecommunications networks 

• Civilian radar (maritime, air traffic 

and weather). 

Two commenters noted that civil 

applications are making greater use of 

two sets of frequency ranges than in the 

past. The commenters stated that 

cellular base stations are expanding into 

the 3.5 GHz band and that block upconverters and solid state amplifiers 

used in satellite based civil 

communications are expanding into the 

Ka band. 

Four manufacturers of MMIC power 

amplifiers and/or discrete microwave 

transistors provided a list of specific 

amplifiers and transistors by model 

number that are sold for use in 

commercial products and that would 

become controlled in ECCN 3A611 by 

the BIS July 1 Military Electronics Rule 

on December 30, 2014. 

One manufacturer of commercial 

telecommunications equipment 

confirmed that it has suppliers in the 

United States, Japan and Singapore for 

some of the MMIC power amplifiers and 

discrete microwave transistors that 

would be made subject to ECCN 3A611 

by the BIS July 1 Military Electronics 

Rule. 

Exacerbates an Existing Disadvantage 

One commenter asserted that 

manufacturers located outside the 

United States have advantages over their 

U.S. counterparts even without the 

latter’s being subjected to the 3A611 

classification because the European 

Union has not revised its control lists to 

implement any Wassenaar Arrangement 

approved changes for three years. The 

expansion of MMIC power amplifier 

and discrete microwave transistor 

coverage adopted by the Wassenaar 

Arrangement December 2013 plenary 

meeting may not be implemented by the 

EU for months or years. (On August 4, 

2014, the EAR was amended to include 

the expanded MMIC power amplifier 

and discrete microwave transistor 

coverage adopted by the December 2013 

plenary meeting. See 79 FR 45287). 

This commenter further asserted that 

manufacturers located outside the 

United States also have an advantage 

because other countries make decisions 

on license applications more quickly 

than the United States. 

Increases the Number of Licenses 

Required 

One manufacturer estimated that 

ECCN 3A611 would impose license 

requirements on exports that currently 

do not require a license for 39 products 

that it has been selling to commercial 

customers, in some cases for more than 

a decade. The customers for these 

products are largely global 

telecommunications equipment 

manufacturers. The manufacturer noted 

that manufacturers in other countries 

can supply MMIC power amplifiers and 

discrete microwave transistors that 

would meet the parameters of 3A611 

but that are not subject to the EAR. This 

manufacturer stated that the license 

requirements of 3A611 would ‘‘stop 

exports of these 39 products hindering 

its participation in three of our core 

commercial markets: Point to-point 

radio, satellite ground terminal (also 

called VSAT, for Very Small Aperture 

Terminal), and cellular base stations 

above 2.7 GHz.’’ Because its customers 

for two of these products, point-to-point 

radio and the emerging 3.5 GHz cellular 

infrastructure (base stations), are largely 


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Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Rules and Regulations 76869 

outside the United States, this 

manufacturer stated that without ability 

to export it ‘‘would likely terminate 

current investments’’ to develop MMIC 

power amplifiers and discrete 

microwave transistors for such 

products. 

Another manufacturer reported that 

about 75% of its MMIC products that 

can currently be exported without a 

license would require a license to all 

destinations other than Canada under 

ECCN 3A611. It has obtained seven 

export licenses for these products in 18 

months. With the new requirements, it 

estimates that it would need about 71 

export licenses. Also, there will be a 

strong ‘‘presumption of denial’’ for all 

export license applications for exports 

of MMICs to China (PRC)—a factor that 

would make it impossible to use U.S. 

origin MMIC power amplifiers and 

discrete microwave transistors for 

telecommunications equipment made in 

China. 

One telecommunications equipment 

manufacturer pointed out that its 

products, if made outside the United 

States, but incorporating even one U.S. 

origin 3A611 commodity, may not be 

exported to China because of the zero de 

minimis threshold and license 

application denial policy for 600 series 

items that apply to that country. The 

same piece of equipment manufactured 

outside the United States, if made with 

MMIC power amplifiers or discrete 

microwave transistors that also were 

made outside the United States, would 

not be subject to those restrictions. This 

same manufacturer also noted that if the 

same piece of equipment were 

manufactured in the United States, it 

would be classified under the ECCN that 

controls the piece of equipment even if 

that piece of equipment contained 600 

series commodities. BIS notes that 

although a foreign made item containing 

a 600 series MMIC power amplifier or 

discrete microwave transistor would be 

subject to the EAR if being exported to 

China, its ECCN (and thus CCL based 

license requirements) would be based 

on the ECCN of the commodity, not that 

of its incorporated parts or components. 

Criteria for Distinguishing Civil From 

Military MMIC Power Amplifiers and 

Discrete Microwave Transistors 

Several commenters stated that power 

added efficiency (PAE) is not an 

appropriate criterion for identifying 

which MMIC power amplifiers and 

discrete microwave transistors are 

predominately used in military 

applications. In the words of one 

commenter: ‘‘Employing PAE for 

distinguishing military from civil 

products seems based on an implicit 

assumption that military systems 

uniformly require higher efficiency than 

commercial operations. That 

assumption is not true.’’ The 

commenters offered the following 

reasons for asserting that power added 

efficiency is not an appropriate metric 

for distinguishing military from civil 

MMIC power amplifiers and discrete 

microwave transistors. 

• The PAE thresholds in ECCN 3A611 

are too low. They would cover most 

Gallium Nitride (GaN) MMICs and 

transistors. 

• PAE is not a precise measure. PAE 

of a single product can vary widely 

depending on a number of factors at the 

time of testing: bias condition, RF drive 

level, temperature, pulse width, duty 

cycle, and time period of operation. 

• In industry practice, there is no 

standard consistent way to measure 

PAE. It can be measured at the optimal 

output load, at a single point of 

frequency, at a peak power level, or at 

an average point of normal operation. 

• Many products are not rated for 

PAE because they will be used in 

applications where other measures 

make more sense. For example, in 

communications, a more relevant 

measure is saturated peak power (which 

needs to be very high to achieve the 

average level of operation that the 

customer needs). 

• The PAE metric creates the same 

problems as ‘‘average output power’’ 

that was removed from ECCN 3A001 in 

accordance with the Wassenaar 

Arrangement 2013 plenary meeting 

changes to the Wassenaar Dual-Use List. 

It is not a metric that lends itself to clear 

or consistent definition in the RF 

industry, and as such should not be the 

basis for regulating RF products. 

• Producers of commercial systems 

are demanding ever-higher efficiency to 

reduce system power consumption 

(which reduces operating costs), size, 

and weight. 

• For power-intensive applications 

such as cellular base stations, 

equipment manufacturers goals 

typically exceed present capabilities of 

MMIC power amplifier and discrete 

microwave transistor technology and 

power amplifier topology. 

• For the device, efficiency is 

determined by the device technology 

and frequency of operation. For the 

amplifier that uses the device, efficiency 

is determined by the topology and class 

of operation, load tuning, and 

bandwidth. 

One commenter noted that a major 

base station manufacturer is asking for 

GaN drain efficiency at saturated output 

power to be greater than 70%. 

Comments and Responses 

Commenters offered several possible 

changes to the criteria for including 

MMIC power amplifiers or discrete 

microwave transistors in ECCN 3A611. 

BIS and the Departments of Defense and 

State reviewed the public comments 

and reassessed the appropriate level of 

control over those devices. 

Comment 1: Two commenters 

recommended eliminating the power 

added efficiency values with respect to 

MMIC power amplifiers and increasing 

the threshold values for peak saturated 

power output in all frequency ranges to 

values that would be substantially 

higher than those specified in the BIS 

July 1 Military Electronics Rule. 

Another commenter recommended 

increasing the threshold values for 

fractional bandwidth, peak saturated 

power output and power added 

efficiency in all frequency ranges to 

values that would be substantially 

higher than the values in the BIS July 1 

Military Electronics Rule. Two 

commenters recommended increasing 

the fractional bandwidth threshold 

values for all or some of the frequency 

ranges to levels that that would be 

substantially higher than those specified 

in the BIS July 1 Military Electronics 

Rule, but did not recommend changes to 

the other parameters. 

Response 1: BIS did not adopt 

changes to the control based on 

fractional bandwidth, peak saturated 

power output, and/or power added 

efficiency because the agency found that 

attempting to designate some MMIC 

power amplifiers and discrete 

microwave transistors as civil and 

others as military based on those 

characteristics is impractical, and any 

resulting classification would not 

accurately reflect real world 

applications for those devices. 

Accordingly, this rule does not adopt 

any performance parameters for 

distinguishing military MMIC power 

amplifiers and discrete microwave 

transistors from their civil counterparts. 

Nevertheless, MMIC power amplifiers 

and discrete microwave transistors, 

regardless of whether they meet the 

performance levels of ECCN 3A001 or 

the published, but not yet effective 

ECCN 3A611, are able to enhance the 

performance of certain military 

electronic systems in ways that can 

confer a military advantage and thus, 

the U.S. government needs to review not 

only proposed exports and reexports for 

use in military applications, but also 

those that are for use in applications 

that pose significant risk of diversion to 

a military application or enhancement 

of a potential adversary’s military 


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76870 Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Rules and Regulations 

capability. After consultation with the 

Departments of Defense and State, BIS 

has concluded that export and reexport 

of MMIC power amplifiers and discrete 

microwave transistors for civil 

telecommunication end uses do not 

impose such risks to an extent that 

would justify license requirements 

beyond those currently imposed on 

MMIC power amplifiers and discrete 

microwave transistors by ECCN 3A001. 

However, for other end uses, the risks 

involved necessitate prior U.S. 

Government review of transactions to 

guard against possible diversion to a 

military application or enhancement of 

a potential adversary’s military 

capability. Accordingly, BIS has 

decided to require licenses for the 

export and reexport of all MMIC power 

amplifiers and discrete microwave 

transistors currently on the CCL for civil 

telecommunications uses to the same 

extent as license are required for exports 

and reexports of MMIC power 

transistors and discrete microwave 

transistors currently controlled in ECCN 

3A001. For all other uses, BIS will 

impose a license requirement for all 

destinations other than Canada and will 

eliminate eligibility for most license 

exceptions. 

Comment 2: One commenter 

recommended adding the phrase 

‘‘specially designed for a military 

application,’’ which appears in ECCN 

3A611.a, to paragraphs .b and .c of that 

ECCN (which control MMIC power 

amplifiers and discrete microwave 

transistors, respectively) as well. 

Response 2: BIS also considered 

adding the phrase ‘‘specially designed 

for a military application,’’ which 

appears in ECCN 3A611.a, to paragraphs 

.b and .c of that ECCN as suggested by 

one commenter. Although the idea has 

merit, its application would not trigger 

a license requirement for all 

transactions into which the U.S. 

Government needs visibility to 

determine whether the transaction 

negatively affects United States security 

interests. Upon review, the agencies 

concluded that the manufacture and 

distribution of devices that support civil 

telecommunications networks and 

systems pose a very low risk. However, 

incorporation into military hardware is 

not the only activity into which the U.S. 

Government needs visibility. Some civil 

uses may also have heightened potential 

for diversion to military application. 

Comment 3: Two commenters 

recommended adding a de-control note 

to ECCN 3A611 excluding products 

specifically designed for radio 

communications in a frequency band 

allocated by the ITU. 

Response 3: BIS considered and 

decided not to adopt the proposal to 

exclude products specifically designed 

for radio communications in a 

frequency band allocated by the ITU. 

Frequency bands allocated by ITU may 

overlap the frequencies used by military 

devices. 

Comments Regarding Bi-Static/

Multistatic Passive Radar That Exploits 

Greater Than 125 kHz Bandwidth Is 

Lower Than 2 GHz Center Frequency To 

Passively Detect or Track Using Radio 

Frequency (RF) Transmissions (e.g., 

Commercial Radio or Television 

Stations) 

One commenter stated that it has an 

internal development project to evaluate 

the feasibility of applying bi-static radar 

to civil air traffic management 

applications. The bi-static radar 

approach could be used as an airborne 

collision avoidance system for civil 

unmanned aerial vehicles and could 

apply to general aviation aircraft. The 

radar described in the USML Category 

XI(a)(3)(xxvii) control could be installed 

at ground based locations to provide air 

traffic information about aircraft not 

equipped with transponders to aircraft 

operating around uncontrolled airports. 

In the past, this commenter has 

classified its passive radar efforts under 

ECCN 5A001.g and the related 

technology under ECCN 5E001. 

Pursuant to the Department of State July 

1 Military Electronics Rule, it will now 

have to classify the system under USML 

Category XI(a)(3)(xxvii). The commenter 

cited an on-going study to test the 

feasibility of using passive radar that 

relies on radio and television broadcast 

signals for air traffic control being 

conducted in the United Kingdom (UK) 

under the auspices of the United 

Kingdom Technology Strategy Board. 

The commenter stated that it did not 

know how this technology is classified 

in the United Kingdom, but indicated 

that if the UK does not classify it as a 

munition, the U.S. company could face 

an un-level playing field. 

BIS has decided not to recommend to 

the Department of State that the revised 

USML Category XI scheduled to take 

effect on December 30 be further revised 

as a result of this comment. As 

described by the commenter, the 

technology is not ready for commercial 

application and thus need not be 

removed from the USML and added to 

the CCL. 

Comment Unrelated to Regulations 

Administered by BIS 

One commenter commented on the 

effect that rules governing the operation 

of unmanned aerial vehicles in the 

United States had on his business. 

The operation of unmanned aerial 

vehicles in the United States is outside 

the scope of regulations administered by 

BIS. Therefore, BIS is taking no action 

in response to this comment. 

Specific Changes Related to ECCN 

3A001 Made by This Final Rule 

For the reasons discussed above, this 

rule imposes a national security (NS 

column 1) control on certain MMIC 

power amplifiers and certain discrete 

microwave transistors, except those that 

are being exported or reexported for use 

in civil telecommunications 

applications, because the U.S. 

Government has determined that these 

commodities are at an increased risk of 

diversion to military applications or to 

activities that would enhance the 

military capabilities of potential 

adversaries, end users and end uses 

contrary to national security objectives. 

This rule also limits the availability of 

License Exceptions Limited Value 

Shipments (LVS), Shipments to Group B 

Countries (GBS), Additional Permissive 

Reexports (APR), and Strategic Trade 

Authorization (STA) for those 

commodities, and makes parallel 

changes to the technology related to 

these commodities for the same reason. 

Specifically, this rule revises the 

controls paragraph in ECCN 3A001 to 

add a national security (NS column 1) 

control and a regional stability (RS 

column 1) control to these commodities, 

which prior to publication of this rule 

were controlled under NS column 2. 

(The anti-terrorism (AT column 1) 

control remains unchanged by this rule.) 

This rule revises the List Based License 

Exceptions paragraph in ECCN 3A001 to 

remove LVS and GBS eligibility, and to 

exclude these commodities from 

License Exception STA eligibility under 

the Special Conditions for STA 

paragraph. This rule also revises 

eligibility paragraphs in License 

Exceptions APR (§ 740.16(a) and (b)) 

and STA (§ 740.20(b)(2)) to exclude 

these commodities. 

Technology for the development and 

production of these commodities is 

controlled by ECCN 3E001. This rule 

revises the List Based License 

Exceptions paragraph in ECCN 3E001 to 

remove eligibility for License Exception 

Technology and Software Under 

Restriction (TSR), and to exclude 

technology for these commodities from 

License Exception STA eligibility under 

the Special Conditions for STA 

paragraph. This rule does not remove 

license exception eligibility for 

technology controlled by ECCN 

5E001.d. The fact that an item, such as 


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Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Rules and Regulations 76871 

a MMIC, is used for telecommunications 

does not make that item a 

telecommunications item controlled in 

Category 5 of the CCL. There are 

additional special design modifications, 

frequency band limiters, and interfaces 

that are specific for telecommunications 

and that constitute the required 

technology controlled in 5E001.d MMIC 

power amplifiers for 

telecommunications. The design 

technology for the MMIC is controlled 

by ECCN 3E001. The additional 

technology required for 

telecommunications is controlled by 

ECCN 5E001. This rule adds notes to the 

Related Controls paragraphs in both 

ECCNs 3E001 and 5E001 to clarify the 

classifications of these technologies. 

These actions will allow the U.S. 

Government to examine in advance the 

exports and reexports of MMIC power 

amplifiers and discrete microwave 

transistors that pose the greatest risk of 

diversion or enhancement of potential 

adversaries’ military capabilities 

without imposing unnecessary licensing 

requirements on low risk transactions. 

Consistent with past practice, this rule 

provides a saving clause for items 

already en route to proceed and allows 

sufficient time to obtain a ‘‘deemed’’ 

export license for technology transfer to 

a foreign national employed in the 

United States (see ‘‘Saving Clause’’ 

below). 

BIS intends to publish, in a future 

rulemaking, a corrections notice 

removing paragraphs .c and .d from 

ECCN 3A611 and paragraphs b.3 and b.4 

from 3E611 as published in the BIS July 

1 Military Electronics Rule. 

Exports and Reexports to Hong Kong 

Notwithstanding Hong Kong’s 

comprehensive export control system, 

analysis of trade information indicates 

Wassenaar Arrangement controlled 

items exported from the United States to 

Hong Kong or reexported from abroad to 

Hong Kong are imported into Hong 

Kong and reexported from Hong Kong 

contrary to the requirements of Hong 

Kong’s export control system (which 

requires import and export 

authorization from the Hong Kong 

Government) and the EAR. 

Prior to publication of this rule, 

certain national security-controlled 

items (i.e., controlled for NS column 2 

on the CCL) did not have a destinationbased license requirement for Hong 

Kong. This rule imposes such a 

requirement by placing an ‘‘X’’ in the 

box in the entry in the Commerce 

Country Chart for Hong Kong for NS 

column 2, and by removing text in 

§ 742.4 (national security) that excepted 

Hong Kong from NS column 2 license 

requirements. A corresponding import 

license will be required from the Hong 

Kong government for these items, and 

this action will facilitate Hong Kong’s 

ability to track their shipment and 

prevent diversion of these items. This 

rule is imposing this new license 

requirement to support the objectives of 

both the U.S. Government and the Hong 

Kong Government to prevent diversion 

of sensitive items. This rule also aligns 

the treatment of Hong Kong under the 

EAR with other Wassenaar Arrangement 

members’ treatment of Hong Kong for 

items under Wassenaar controls. 

Saving Clause 

Shipments of items removed from 

eligibility for export or reexport under a 

license exception or without a license 

(i.e., under the designator ‘‘NLR’’) as a 

result of this regulatory action that were 

on dock for loading, on lighter, laden 

aboard an exporting carrier, or en route 

aboard a carrier to a port of export, on 

December 23, 2014, pursuant to actual 

orders for export or reexport to a foreign 

destination, may proceed to that 

destination under the previously 

applicable license exception or without 

a license (NLR) so long as they are 

exported or reexported before January 

22, 2015. Any such items not actually 

exported or reexported before midnight, 

on January 22, 2015, require a license in 

accordance with this regulation. 

‘‘Deemed’’ exports of ‘‘technology’’ 

and ‘‘source code’’ removed from 

eligibility for export under a license 

exception or without a license (under 

the designator ‘‘NLR’’) as a result of this 

regulatory action may continue to be 

made under the previously available 

license exception or without a license 

(NLR) before February 23, 2015. 

Beginning at midnight on February 23, 

2015, such ‘‘technology’’ and ‘‘source 

code’’ may no longer be released, 

without a license, to a foreign national 

subject to the ‘‘deemed’’ export controls 

in the EAR when a license would be 

required to the home country of the 

foreign national in accordance with this 

regulation. 

Export Administration Act 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as amended by 

Executive Order 13637 of March 8, 

2013, 78 FR 16129 (March 13, 2013) and 

as extended by the Notice of August 7, 

2014, 79 FR 46959 (August 11, 2014), 

has continued the Export 

Administration Regulations in effect 

under the International Emergency 

Economic Powers Act. BIS continues to 

carry out the provisions of the Export 

Administration Act, as appropriate and 

to the extent permitted by law, pursuant 

to Executive Order 13222 as amended 

by Executive Order 13637. 

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 

effects, distributive 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 rule 

has been determined to be not a 

significant rule for purposes of 

Executive Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to nor be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

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

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

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves collections previously 

approved by OMB under control 

number 0694–0088, Simplified Network 

Application Processing System, which 

includes, among other things, license 

applications and carries a burden 

estimate of 43.8 minutes for a manual or 

electronic submission. 

Total burden hours associated with 

the PRA and OMB control number 

0694–0088 are expected to increase by 

approximately 22 hours as a result of 

this rule (an estimated thirty additional 

license per year). You may send 

comments regarding the collection of 

information associated with this rule, 

including suggestions for reducing the 

burden, to Office of Management and 

Budget (OMB) by email to OIRA_

Submission@omb.eop.gov, or by fax to 

(202) 395–7285. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

comment and a delay in effective date 

are inapplicable because this regulation 

involves a military or foreign affairs 

function of the United States. (See 5 

U.S.C. 553(a)(1)). 


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76872 Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Rules and Regulations 

BIS is implementing this rule to 

protect U.S. national security or foreign 

policy interests. This rule imposes an 

export and reexport license requirement 

on certain items controlled for national 

security reasons destined to Hong Kong. 

This rule is imposing this new license 

requirement to support the objectives of 

both the U.S. Government and the Hong 

Kong Government to prevent diversion 

of sensitive items. This rule also 

removes certain license exception 

availability for some electronic 

components, such as MMIC power 

amplifiers and certain discrete 

microwave transistors, except those that 

are being exported or reexported for use 

in civil telecommunications 

applications, that BIS has determined 

are at risk for diversion or enhancement 

of potential adversaries’ military 

capabilities. By requiring a license for 

end uses where that possibility of 

diversion or enhancement of potential 

adversaries’ military capabilities is 

higher, the U.S. Government has the 

opportunity to evaluate the risk in 

advance of export or reexport. 

Immediate implementation will allow 

BIS to prevent exports of these items to 

users and for uses that pose a security 

threat to the United States or its allies. 

If BIS published a proposed rule 

soliciting notice and comment, the 

resulting delay in implementation 

would afford an opportunity to divert 

these items to users and uses that pose 

such a security threat, thereby 

undermining the purpose of the rule. 

Further, no other law requires that a 

notice of proposed rulemaking and an 

opportunity for public comment be 

given for this rule. 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 

15 CFR Part 738 

Exports. 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, parts 738, 740, 742, and 

774 of the Export Administration 

Regulations (15 CFR parts 730–774) are 

amended as follows: 

PART 738—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 738 continues to read as follows: 

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

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 

seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

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

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

Comp., p. 783; Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014). 

Supplement No. 1 to Part 738 

[Amended] 

■ 2. Supplement No. 1 to part 738 is 

amended by revising the entry for Hong 

Kong to read as follows: 

SUPPLEMENT NO. 1 TO PART 738—COMMERCE COUNTRY CHART

[Reason for control] 

Countries 

Chemical & biological weapons Nuclear nonproliferation National 

security 

Missile 

tech 

Regional stability Fire- arms 

convention 

Crime 

control 

Antiterrorism 

CB 

1 

CB 

2 

CB 

3 

NP 

1 

NP 

2 

NS 

1 

NS 

2 

MT 

1 

RS 

1 

RS 

2 FC 

1 

CC 

1 

CC 

2 

CC 

3 

AT 

1 

AT 

2 

*******

Hong Kong ....... X X .............. X .............. X X X X X .............. X .............. X .............. ..............

*******

* * * * * 

PART 740—[AMENDED] 

■ 3. The authority citation for 15 CFR 

part 740 is revised to read as follows: 

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

U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; 

E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., 

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

Comp., p. 783; Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014). 

■ 4. Section 740.16 is amended by 

revising paragraphs (a)(2) and (b)(1) to 

read as follows: 

§ 740.16 Additional permissive reexports 

(APR). 

* * * * * 

(a) * * * 

(2) The commodities being reexported 

are not controlled for NP, CB, MT, SI or 

CC reasons and are not military 

commodities described in ECCN 0A919 

or cameras described in ECCN 

6A003.b.3 (having the characteristics 

listed in 6A002.a.2.a or a.2.b), 

6A003.b.4.b, 6A003.b.4.c, or 

commodities described in 3A001.b.2 or 

b.3 (except those that are being 

reexported for use in civil 

telecommunications applications), 

6A002.a.2.a, a.2.b, a.2.c, a.3.b.2.b, or 

a.3.g; and 

* * * * * 

(b) * * * 

(1) Commodities that are not 

controlled for nuclear nonproliferation 

or missile technology reasons, described 

in 3A001.b.2 or b.3 (except those that 

are being reexported for use in civil 

telecommunications applications), nor 

listed in paragraph (b)(2) or (b)(3) of this 

section may be reexported to and among 

Country Group A:1 and cooperating 

countries, provided that eligible 

commodities are for use or consumption 

within a Country Group A:1 (see 

Supplement No. 1 to part 740) or 

cooperating country, or for reexport 

from such country in accordance with 

other provisions of the EAR. 

* * * * * 

■ 5. Section 740.20 is amended by 

adding paragraph (b)(2)(xi) to read as 

follows: 

§ 740.20 License exception strategic trade 

authorization (STA). 

* * * * * 

(b) * * * 

(2) * * * 

(xi) License Exception STA may not 

be used for any commodity controlled 

by ECCN 3A001.b.2 or b.3 (except those 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Rules and Regulations 76873 

that are being exported or reexported for 

use in civil telecommunications 

applications), or any ‘‘technology’’ 

controlled by 3E001 for the 

‘‘production’’ or ‘‘development’’ of 

commodities controlled by 3A001.b.2 or 

b.3. 

* * * * * 

PART 742—[AMENDED] 

■ 6. The authority citation for 15 CFR 

part 742 continues to read as follows: 

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

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

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

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

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

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

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

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

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

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

Comp., p. 783; Presidential Determination 

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

16, 2003; Notice of August 7, 2014, 79 FR 

46959 (August 11, 2014); Notice of November 

7, 2014, 79 FR 67035 (November 12, 2014). 

■ 7. Section 742.4 is amended by 

revising the third sentence of paragraph 

(a) to read as follows: 

§ 742.4 National security. 

(a) License requirements. * * * A 

license is required to all destinations 

except Country Group A:5 (not 

including Argentina) (see Supplement 

No. 1 to part 740) and Mexico, for all 

items in ECCNs on the CCL that include 

NS column 2 in the Commerce Country 

Chart column of the ‘‘License 

Requirements’’ section except those 

cameras in ECCN 6A003.b.4.b that have 

a focal plane array with 111,000 or 

fewer elements and a frame rate of 60 

Hz or less. * * * 

* * * * * 

PART 774—[AMENDED] 

■ 8. The authority citation for 15 CFR 

part 774 continues to read as follows: 

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

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 

seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

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

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

Comp., p. 783; Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014). 

■ 9. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 3, 

ECCN 3A001 is amended by revising the 

Reasons for Control and the Control 

Table in the License Requirements 

section and the List Based License 

Exceptions section, and adding a 

Special Conditions for STA section 

before the List of Items Controlled 

section to read as follows: 

Supplement No. 1 to Part 774—the 

Commerce Control List 

* * * * * 

3A001 Electronic components and 

‘‘specially designed’’ ‘‘components’’ 

therefor, as follows (see List of Items 

Controlled). 

License Requirements 

Reason for Control: NS, RS, MT, NP, AT 

Control(s) 

Country chart (see 

Supp. No. 1 to part 

738) 

NS applies to Microwave ‘‘Monolithic 

Integrated Circuits’’ 

(MMIC) power amplifiers in 

3A001.b.2 and discrete microwave 

transistors in 

3A001.b.3, except 

those 3A001.b.2 

and b.3 items 

being exported or 

reexported for use 

in civil telecommunications 

applications.

NS Column 1 

NS applies to entire 

entry.

NS Column 2 

RS applies to Microwave ‘‘Monolithic 

Integrated Circuits’’ 

(MMIC) power amplifiers in 

3A001.b.2 and discrete microwave 

transistors in 

3A001.b.3, except 

those 3A001.b.2 

and b.3 items 

being exported or 

reexported for use 

in civil telecommunications 

applications.

RS Column 1 

MT applies to 

3A001.a.1.a when 

usable in ‘‘missiles’’; and to 

3A001.a.5.a when 

‘‘designed or modified’’ for military 

use, hermetically 

sealed and rated 

for operation in the 

temperature range 

from below ¥54°C 

to above +125°C.

MT Column 1 

Control(s) 

Country chart (see 

Supp. No. 1 to part 

738) 

NP applies to pulse 

discharge capacitors in in 3A001.e.2 

and superconducting solenoidal 

electromagnets in 

3A001.e.3 that 

meet or exceed the 

technical parameters in 3A201.a 

and 3A201.b, respectively.

NP Column 1 

AT applies to entire 

entry.

AT Column 1 

* * * * * 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

LVS: N/A for MT or NP; N/A for Microwave 

‘‘Monolithic Integrated Circuits’’ (MMIC) 

power amplifiers in 3A001.b.2 and discrete 

microwave transistors in 3A001.b.3, except 

those that are being exported or reexported 

for use in civil telecommunications 

applications 

Yes for: 

$1500: 3A001.c 

$3000: 3A001.b.1, b.2 (exported or 

reexported for use in civil 

telecommunications applications), b.3 

(exported or reexported for use in civil 

telecommunications applications), b.9, .d, 

.e, .f, and .g. 

$5000: 3A001.a (except a.1.a and a.5.a when 

controlled for MT), and .b.4 to b.7. 

GBS: Yes for 3A001.a.1.b, a.2 to a.13 (except 

.a.5.a when controlled for MT), b.2 

(exported or reexported for use in civil 

telecommunications applications), b.8 

(except for TWTAs exceeding 18 GHz), 

b.9., b.10, .g, and .h. 

CIV: Yes for 3A001.a.3, a.7, and a.11. 

Special Conditions for STA 

STA: License Exception STA may not be 

used to ship any item in 3A001.b.2 or b.3, 

except those that are being exported or 

reexported for use in civil 

telecommunications applications, to any of 

the destinations listed in Country Group 

A:5 or A:6 (See Supplement No.1 to part 

740 of the EAR). 

* * * * * 

■ 10. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 3, 

ECCN 3E001 is amended by revising the 

List Based License Exceptions section, 

the Special Conditions for STA, and the 

Related Controls paragraph under the 

List of Items Controlled section to read 

as follows: 

3E001 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development’’ or ‘‘production’’ of 

equipment or materials controlled by 3A 

(except 3A292, 3A980, 3A981, 3A991 

3A992, or 3A999), 3B (except 3B991 or 

3B992) or 3C (except 3C992). 

* * * * * 


tkelley on DSK3SPTVN1PROD with RULES
76874 Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Rules and Regulations 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

CIV: N/A 

TSR: Yes, except N/A for MT, and 

‘‘technology’’ for the ‘‘development’’ or 

‘‘production’’ of: (a) Traveling Wave Tube 

Amplifiers described in 3A001.b.8, having 

operating frequencies exceeding 19 GHz; 

(b) solar cells, coverglass-interconnect-cells 

or covered-interconnect-cells (CIC) 

‘‘assemblies,’’ solar arrays and/or solar 

panels described in 3A001.e.4; (c) 

Microwave ‘‘Monolithic Integrated 

Circuits’’ (MMIC) power amplifiers in 

3A001.b.2; and (d) discrete microwave 

transistors in 3A001.b.3. 

Special Conditions for STA 

STA: License Exception STA may not be 

used to ship or transmit ‘‘technology’’ 

according to the General Technology Note 

for the ‘‘development’’ or ‘‘production’’ of 

equipment specified by ECCNs 3A002.g.1 

or 3B001.a.2 to any of the destinations 

listed in Country Group A:6 (See 

Supplement No.1 to part 740 of the EAR). 

License Exception STA may not be used to 

ship or transmit ‘‘technology’’ according to 

the General Technology Note for the 

‘‘development’’ or ‘‘production’’ of 

components specified by ECCN 3A001.b.2 

or b.3 to any of the destinations listed in 

Country Group A:5 or A:6 (See Supplement 

No.1 to part 740 of the EAR). 

List of Items Controlled 

Related Controls: (1) ‘‘Technology’’ according 

to the General Technology Note for the 

‘‘development’’ or ‘‘production’’ of certain 

‘‘space-qualified’’ atomic frequency 

standards described in Category XV(e)(9), 

MMICs described in Category XV(e)(14), 

and oscillators described in Category 

XV(e)(15) of the USML are ‘‘subject to the 

ITAR’’ (see 22 CFR parts 120 through 130). 

See also 3E101, 3E201 and 9E515. (2) 

‘‘Technology’’ for ‘‘development’’ or 

‘‘production’’ of Microwave ‘‘Monolithic 

Integrated Circuits’’ (MMIC) power 

amplifiers in 3A001.b.2 is controlled in 

this ECCN 3E001; 5E001.d refers only to 

that additional ‘‘technology’’ ‘‘required’’ 

for telecommunications. 

* * * * * 

■ 11. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 5, 

ECCN 5E001 is amended by revising the 

Related Controls paragraph under the 

List of Items Controlled section to read 

as follows: 

5E001 ‘‘Technology’’ as follows (see List of 

Items Controlled). 

* * * * * 

List of Items Controlled 

Related Controls: (1) See also 5E101, 5E980 

and 5E991. (2) ‘‘Technology’’ for 

‘‘development’’ or ‘‘production’’ of 

Microwave ‘‘Monolithic Integrated 

Circuits’’ (MMIC) power amplifiers that 

meet the control criteria given at 3A001.b.2 

is controlled in 3E001; 5E001.d refers only 

to that additional ‘‘technology’’ ‘‘required’’ 

for telecommunications. 

* * * * * 

Dated: December 12, 2014. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2014–29686 Filed 12–22–14; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 774 

[Docket No. 141119982–4982–01] 

RIN 0694–AG40 

Clarification to Scope of Certain ‘‘600 

series’’ Export Control Classification 

Numbers (ECCNs) 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Final rule. 

SUMMARY: This rule revises six Export 

Control Classification Numbers (ECCNs) 

to clarify that they do not control certain 

basic parts, components, accessories 

and attachments because those basic 

parts, components, accessories and 

attachments are controlled in a new 

ECCN created by a rule published on 

July 1, 2014 to be effective on December 

30, 2014. This rule also removes 

controls on certain monolithic 

microwave integrated circuit (MMIC) 

power amplifiers and discrete 

microwave transistors and related 

technology. These controls are no longer 

necessary because two other rules 

published after July 1, 2014, provide 

appropriate controls on those items. 

This rule also clarifies the application of 

‘‘specially designed’’ to controls 

published on July 1, 2014 that would 

apply to printed circuit boards, 

populated circuit card assemblies and 

multichip modules to reduce the 

possibility of confusion. Finally, this 

rule revises three of the amendatory 

instructions in the final rule published 

on July 1, to avoid negating changes to 

the Export Administration Regulations 

that became effective after that date. 

DATES: This rule is effective December 

30, 2014. 

FOR FURTHER INFORMATION CONTACT: 

William Arvin, Regulatory Policy 

Division, Office of Exporter Services, 

Bureau of Industry and Security, 

william.arvin@bis.doc.gov, 202–482– 

2440. 

SUPPLEMENTARY INFORMATION: 

Background 

Affirming Scope of Antiterrorism 

License Requirement in ECCN 3A611.y 

As part of the Administration’s Export 

Control Reform Initiative, BIS has added 

to the Commerce Control List several 

‘‘600 series’’ ECCNs to control items of 

a military nature that the President has 

determined no longer warrant control 

on the United State Munitions List. The 

‘‘600 series’’ ECCNs are identified by the 

numeral ‘‘6’’ as their third character. 

Many ‘‘600 series’’ ECCNs have a 

paragraph designated as paragraph .x 

that imposes license requirements on 

unspecified parts, components, 

accessories and attachments specially 

designed for a specified set of items, 

unless those parts, components, 

accessories or attachments are 

enumerated on the USML or specified 

in ECCNs listed in that .x paragraph. 

Many ‘‘600 series’’ ECCNs also have a 

paragraph designated as paragraph .y, 

which specifies items to which only the 

antiterrorism (AT) reason for control 

applies. Items covered by the .x 

paragraphs require a license for all 

destinations except Canada unless a 

license exception is available. Items 

covered by .y paragraphs require a 

license for only Cuba, Iran, North Korea, 

Sudan, Syria, the People’s Republic of 

China, Russia, and Venezuela. 

In response to a proposed rule— 

Revisions to the Export Administration 

Regulations (EAR): Control of Military 

Electronic Equipment and Related Items 

the President Determines No Longer 

Warrant Control Under the United 

States Munitions List (77 FR 70945, 

November 28, 2012)—one commenter 

expressed a belief that placing .y 

paragraphs in separate ECCNs would 

lead to inconsistent classifications; for 

example, in some ECCNs indicator 

lights appeared in the .y paragraph but 

not in other ECCNs. In response, BIS, 

inter alia, published a second proposed 

rule and solicited comments on three 

specific ideas for organizing the controls 

that had been set forth in the .y 

paragraphs (78 FR 45026, 45034, July 

25, 2013). Those ideas were: (1) Creating 

separate ECCN-specific .y paragraphs; 

(2) creating a single list of ‘‘600 series’’ 

items that would be subject only to the 

antiterrorism and China license 

requirements; and (3) establishing a 

classification request procedure 

whereby a ‘‘600 series’’ item could be 

designated as subject only to 

antiterrorism and China license 

requirements, but eliminate the .y 

listings from the regulations or remove 

all .y lists completely. 

After reviewing the comments on that 

proposal, BIS published a final rule (79 


tkelley on DSK3SPTVN1PROD with RULES