This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

29564 

Vol. 77, No. 97 

Friday, May 18, 2012 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 742, 772 and 774 

[Docket No. 111229800–2073–01] 

RIN 0694–AF51 

Revisions to the Export Administration 

Regulations: Auxiliary and 

Miscellaneous Items That No Longer 

Warrant Control Under the United 

States Munitions List and Items on the 

Wassenaar Arrangement Munitions 

List 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Proposed rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) publishes this action to 

propose how auxiliary and 

miscellaneous military equipment and 

related articles the President determines 

no longer warrant control under 

Category XIII (Auxiliary Military 

Equipment) of the United States 

Munitions List (USML) would be 

controlled under the Commerce Control 

List (CCL) in new Export Control 

Classification Numbers (ECCNs) 0A617, 

0B617, 0C617, 0D617, and 0E617 as part 

of the proposed new ‘‘600 series’’ of 

ECCNs. 

This rule proposes also to integrate 

into those five new ECCNs items within 

the scope of Wassenaar Arrangement 

Munitions List (WAML) Category 17 

that would be removed from the USML, 

or that are not specifically identified on 

the USML or CCL but that are currently 

subject to USML jurisdiction. Finally, 

this rule proposes to control some items 

now classified under ECCNs 0A018, 

0A918 and 0E018 under new ECCNs 

0A617 and 0E617. This action would 

consolidate the above-mentioned 

auxiliary and miscellaneous military 

equipment and related articles on the 

CCL in the proposed new ‘‘600 series.’’ 

This rule is one of a planned series 

proposing how various types of articles 

that the President determines, as part of 

the Administration’s Export Control 

Reform Initiative, no longer warrant 

control on the USML under the 

International Traffic in Arms 

Regulations (ITAR), would be controlled 

on the CCL in accordance with the 

requirements of the Export 

Administration Regulations (EAR). This 

proposed rule is being published in 

conjunction with a proposed rule from 

the Department of State, Directorate of 

Defense Trade Controls, which would 

amend the list of articles controlled by 

USML Category XIII. 

DATES: Comments must be received by 

July 2, 2012. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. The identification 

number for this rulemaking is BIS– 

2012–0014. 

• By email directly to 

publiccomments@bis.doc.gov. Include 

RIN 0694–AF51 in the subject line. 

• By mail or delivery to Regulatory 

Policy Division, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Room 2099B, 14th Street and 

Pennsylvania Avenue NW., Washington, 

DC 20230. Refer to RIN 0694–AF51. 

FOR FURTHER INFORMATION CONTACT: 

Michael Rithmire, Office of National 

Security and Technology Transfer 

Controls, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Telephone: (202) 482–6105, Email: 

Michael.Rithmire@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On July 15, 2011, as part of the 

Administration’s ongoing Export 

Control Reform Initiative, the Bureau of 

Industry and Security (BIS) published a 

proposed rule (76 FR 41958) (herein the 

‘‘July 15 proposed rule’’) that set forth 

a framework for how to transfer articles 

the President determines, in accordance 

with section 38(f) of the Arms Export 

Control Act (AECA) (22 U.S.C. 2778(f)), 

no longer warrant control on the United 

States Munitions List (USML) to control 

under the Commerce Control List (CCL) 

in Supplement No. 1 to Part 774 of the 

Export Administration Regulations 

(EAR). That framework included a 

proposal by BIS describing a new ‘‘600 

series’’ set of Export Control 

Classification Numbers (ECCNs) to 

control defense articles that move to the 

CCL from the USML, as well as 

Wassenaar Arrangement Munitions List 

(WAML) items. Specifically, the 

proposed new ‘‘600 series’’ entries 

would capture WAML and formerly 

USML end items and related items that 

have been removed from the USML or 

that are not specifically identified on 

the USML or CCL. It would also control 

some items now classified on the CCL. 

These actions would consolidate control 

of munitions items and related articles 

on the CCL. 

On November 7, 2011 (76 FR 68675), 

BIS published a proposed rule (herein 

the ‘‘November 7 proposed rule’’) 

proposing several changes to the 

framework initially proposed in the July 

15 proposed rule. 

Following the structure of the July 15 

and November 7 proposed rules, this 

action proposes to control in new 

ECCNs 0A617, 0B617, 0C617, 0D617, 

and 0E617: Auxiliary and miscellaneous 

military equipment and related items 

from WAML 17 that would be removed 

from USML Category XIII under the 

International Traffic in Arms 

Regulations (ITAR) because the 

President determines they no longer 

warrant control under USML Category 

XIII; items not specifically identified on 

the USML or CCL, but that currently are 

subject to USML jurisdiction; and items 

ending in ‘‘018’’ on the CCL. 

The proposed changes described in 

this rule and the State Department’s 

proposed amendments to Category XIII 

of the USML are based on a review of 

the USML by the Defense Department, 

which worked with the Departments of 

State and Commerce in preparing the 

proposed rules. That review focused on 

identifying the types of articles that are 

now controlled by USML Category XIII 

and other relevant USML Categories that 

are either: (i) Inherently military and 

otherwise warrant control on the USML; 

or (ii) a type common to civil 

applications, possessing parameters or 

characteristics that provide a critical 

military or intelligence advantage to the 

United States, and that are almost 

exclusively available from the United 

States. If an article satisfied either or 

both of those criteria, the article remains 

on the USML. If an article did not 

satisfy either criterion, but was 

determined, nonetheless, to be a type of 

article that is now on the corresponding 

USML or the Munitions List of the 

Wassenaar Arrangement on Export 

Controls for Conventional Arms and 


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Federal Register / Vol. 77, No. 97 / Friday, May 18, 2012 / Proposed Rules 29565 

Dual-Use Goods and Technologies 

(Wassenaar Arrangement Munitions List 

or WAML), then it has been identified 

in one of the new ECCNs in this 

proposed rule. The license 

requirements, license policies and other 

EAR-specific controls for such items 

that are proposed in this action would, 

when considered in the context of the 

other proposed amendments to the 

USML and the CCL, enhance national 

security by: (i) Allowing for greater 

interoperability with North Atlantic 

Treaty Organization (NATO) and other 

allies while maintaining and expanding 

robust controls that, in some instances, 

include prohibitions on exports or 

reexports destined for other countries or 

intended for proscribed end users and 

end uses; (ii) enhancing the U.S. defense 

industrial base by, for example, 

reducing the current incentives for 

foreign companies to design out or 

avoid U.S.-origin ITAR-controlled 

content, particularly with respect to 

generic, unspecified parts and 

components; and (iii) permitting the 

U.S. Government to focus its resources 

on controlling, monitoring, 

investigating, analyzing, and, if need be, 

prohibiting exports and reexports of 

more significant items to destinations, 

end users, and end uses of greater 

concern than NATO allies and other 

multi-regime partners. 

Pursuant to section 38(f) of the AECA, 

the President shall review the USML ‘‘to 

determine what items, if any, no longer 

warrant export controls under’’ the 

AECA. The President must report the 

results of the review to Congress and 

wait 30 days before removing any such 

items from the USML. The report must 

‘‘describe the nature of any controls to 

be imposed on that item under any 

other provision of law.’’ 22 U.S.C. 

2778(f)(1). 

As noted above, this action proposes 

to control under the EAR auxiliary and 

miscellaneous military equipment and 

related articles currently in USML 

Category XIII under the ITAR that the 

President determines no longer warrant 

control on the USML. If implemented, 

this rule would control under the EAR: 

Items from WAML Category 17 that 

would be removed from USML Category 

XIII; items not specifically identified on 

the USML or CCL but that currently are 

subject to USML jurisdiction; and items 

ending in ‘‘018’’ on the CCL, 

specifically, some items now classified 

under ECCNs 0A018, 0A918 and 0E018 

under new ECCNs 0A617 and 0E617. 

This would consolidate the abovementioned auxiliary and miscellaneous 

military equipment and related articles 

on the CCL in a proposed new ‘‘600 

series.’’ As this rule describes the 

controls that would be in place for 

miscellaneous items, it also specifies 

how the CCL would be amended to 

clarify where an item may be controlled 

under another USML Category or ECCN. 

In the July 15 proposed rule, BIS 

proposed creating a series of new 

ECCNs to control items that: (i) Would 

be moved from the USML to the CCL; 

or (ii) are listed on the Wassenaar 

Arrangement Munitions List and are 

already controlled elsewhere on the 

CCL. That proposed rule referred to this 

series as the ‘‘600 series’’ because the 

third character in each of the new 

ECCNs would be a ‘‘6.’’ The first two 

characters of the ‘‘600 series’’ ECCNs 

serve the same function as described for 

any other ECCN in § 738.2 of the EAR. 

The first character is a digit in the range 

0 through 9 that identifies the Category 

on the CCL in which the ECCN is 

located. The second character is a letter 

in the range A through E that identifies 

the product group within a CCL 

Category. In the ‘‘600 series,’’ the third 

character is the number 6. With few 

exceptions, the final two characters 

identify the WAML category that covers 

items that are the same or similar to 

items in a particular ‘‘600 series’’ ECCN. 

This proposed rule would create five 

new ‘‘600 series’’ ECCNs in CCL 

Category 0 (ECCNs 0A617, 0B617, 

0C617, 0D617, and 0E617). ECCN 0A617 

would cover miscellaneous equipment, 

materials, and related commodities, 

including crew kits. ECCN 0B617 would 

cover test, inspection, and production 

‘‘equipment’’ and related commodities 

‘‘specially designed’’ for the 

‘‘development’’ or ‘‘production’’ of 

commodities controlled by ECCN 0A617 

or USML Category XIII. ECCN 0C617 

would cover miscellaneous materials 

‘‘specially designed’’ for military use. 

ECCN 0D617 would cover ‘‘software’’ 

‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul or refurbishing of 

commodities controlled by 0A617, 

‘‘equipment’’ controlled by 0B617, or 

materials controlled by 0C617. ECCN 

0E617 would cover ‘‘technology’’ 

‘‘required’’ for the ‘‘development,’’ 

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul or 

refurbishing of commodities controlled 

by 0A617 ‘‘equipment’’ controlled by 

0B617, materials controlled by 0C617, 

or ‘‘software’’ controlled by 0D617. 

BIS will publish additional Federal 

Register notices containing proposed 

amendments to the CCL that will 

describe proposed controls for 

additional categories of articles the 

President determines no longer warrant 

control under the USML. The State 

Department will publish, concurrently, 

proposed amendments to the USML that 

correspond to the BIS notices. BIS will 

also publish proposed rules to further 

align the CCL with the WAML and the 

Missile Technology Control Regime 

Equipment, Software and Technology 

Annex. 

Detailed Description of Changes 

Proposed by This Rule 

This proposed rule would create five 

new ‘‘600 series’’ ECCNs in CCL 

Category 0—0A617, 0B617, 0C617, 

0D617, and 0E617—that would clarify 

the EAR controls that apply to auxiliary 

and miscellaneous military equipment 

and related articles the President 

determines no longer warrant control 

under USML Category XIII. This 

category also applies to items from 

WAML Category 17 that would be 

removed from USML Category XIII; 

items not specifically identified on the 

USML or CCL but that currently are 

subject to USML jurisdiction; and items 

ending in ‘‘018’’ on the CCL, 

specifically, some items now classified 

under ECCNs 0A018, 0A918 and 0E018 

under new ECCNs 0A617 and 0E617. 

This action would consolidate the 

above-mentioned auxiliary and 

miscellaneous military equipment and 

related articles on the CCL in a 

proposed new ‘‘600 series’’ consistent 

with the regulatory construct identified 

in the July 15 proposed rule. Finally, 

this rule would add a corresponding 

new definition to section 772.1 of the 

EAR. 

The proposed changes are discussed 

in more detail below. 

New ECCN 0A617: Miscellaneous 

Equipment, Materials, and Related 

Commodities 

ECCN 0A617.a would control 

construction equipment ‘‘specially 

designed’’ for military use, including 

such equipment ‘‘specially designed’’ 

for transport in aircraft controlled by 

USML Category VIII(a) or proposed 

ECCN 9A610.a (proposed in the 

November 7 rule); and ‘‘parts,’’ 

‘‘components’’ and ‘‘accessories and 

attachments’’ ‘‘specially designed’’ 

therefor, including crew protection kits 

used as protective cabs. Such items 

currently are controlled under ECCN 

0A018.a as ‘‘construction equipment 

built to military specifications, 

including equipment specially designed 

for airborne transport; and specially 

designed parts and accessories for such 

construction equipment, including crew 

protection kits used as protective cabs,’’ 

and are identified in WAML Category 

17.b. 


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29566 Federal Register / Vol. 77, No. 97 / Friday, May 18, 2012 / Proposed Rules 

ECCN 0A617.b would control 

concealment and deception equipment 

‘‘specially designed’’ for military 

application that are not controlled in 

USML Category XIII(g), as well as 

‘‘parts,’’ ‘‘components,’’ ‘‘accessories 

and attachments’’ specially designed 

therefor. ECCN 0A617.c would control 

ferries, bridges (other than those 

described in ECCN 0A606 or USML 

Category VII), and pontoons if the 

ferries, bridges or pontoons are 

‘‘specially designed’’ for military use, 

also identified in WAML Category 17.m. 

Although not explicitly named or 

described on the USML, these items are 

currently controlled by USML Category 

VII(g). ECCN 0A617.d would control test 

models ‘‘specially designed’’ for the 

‘‘development’’ of defense articles 

controlled by the USML or commodities 

controlled in the ‘‘600 series.’’ Such 

items are identified in WAML Category 

17.n. Although not explicitly named or 

described on the USML, such items 

would be controlled in relation to the 

defense article they model, such as 

items in USML Categories VII(g) and 

VIII(h). ECCN 0A617.e. would control 

photointerpretation, stereoscopic 

plotting and photogrammetry 

equipment that would not be controlled 

by USML Category XIII(a) or elsewhere 

in the USML, as well as ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ ‘‘specially designed’’ 

therefor. ECCN 0A617.f would control 

‘‘metal embrittlement agents’’, currently 

controlled by USML Category XIII(i) but 

not within the scope of the revised 

Category XIII the State Department has 

proposed. The term ‘‘metal 

embrittlement agents’’ would be defined 

in the EAR the same way it is now 

defined in the ITAR. 

Paragraphs .g through .x would be 

reserved for possible future use. Unlike 

other proposed Category rules 

previously published as a part of the 

Export Control Reform Initiative, ECCN 

0A617, and the other ECCNs in the 

0X617 series, would not contain a catchall control in the ‘‘.x’’ subparagraph for 

all parts and components ‘‘specially 

designed’’ for items in that category 

because neither USML Category XIII nor 

WAML Category 17 contain such a 

catch-all for auxiliary or miscellaneous 

military equipment. To the extent a part 

or component is controlled in this 

ECCN, it is described in the applicable 

subparagraphs. 

Paragraph .y would control other 

commodities, as listed in the .y 

subparagraphs. Specifically, ECCN 

0A617.y.1 would control containers 

‘‘specially designed’’ for military use, 

which are currently identified in WAML 

Category 17.l. ECCN 0A617.y.2 would 

control military field generators, which 

are currently identified in WAML 17.k. 

ECCN 0A617.y.3 would control military 

power-controlled searchlights and 

related items. Such items are currently 

classified under ECCN 0A918.a as 

‘‘miscellaneous military equipment.’’ 

Paragraphs y.4 through y.98 would be 

reserved for future use. 

Finally, to the extent an item referred 

to in WAML 17 is already clearly 

controlled in another existing USML 

Category or ECCN, then the ‘‘related 

controls’’ note at the beginning of 

proposed ECCN 0A617 would identify 

where in the CCL and/or USML it is 

controlled. 

New ECCN 0B617: ‘‘Equipment’’ 

‘‘Specially Designed’’ for Commodities 

Controlled by ECCN 0A617.a or USML 

Category XIII 

ECCN 0B617.a would control test, 

inspection, and production 

‘‘equipment’’ not controlled by USML 

Category XIII(k) ‘‘specially designed’’ for 

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

commodities controlled by ECCN 0A617 

or USML Category XIII. Paragraphs .b 

through .x would be reserved for 

possible future use. 

ECCN 0B617.y would control specific 

test, inspection, and production 

‘‘equipment’’ ‘‘specially designed’’ for 

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

commodities controlled by ECCN 0A617 

(except 0A617.y) and ‘‘parts,’’ 

‘‘components,’’ and ‘‘accessories and 

attachments’’ ‘‘specially designed’’ 

therefor. Since this proposed rule does 

not list specific equipment under 

paragraph .y, sub-paragraphs .y.1 

through .y.98 would be reserved for 

possible future use. 

A note to 0B617 explains that field 

engineer equipment ‘‘specially 

designed’’ for use in a combat zone and 

mobile repair shops ‘‘specially designed 

or modified to service military 

equipment, which are identified in 

WAML Categories 17.d and 17.j,’’ 

respectively, are classified under ECCN 

0B617 to the extent that the items are 

not included in USML XIII(k). 

New ECCN 0C617: Miscellaneous 

Materials ‘‘Specially Designed’’ for 

Military Use 

ECCN 0C617.a would control 

materials, coatings and treatments for 

signature suppression, ‘‘specially 

designed’’ for military use and that are 

not controlled by the USML or ECCNs 

1C001 or 1C101. Paragraphs .b through 

.x would be reserved for possible future 

use. ECCN 0C617.y would control 

materials ‘‘specially designed’’ for 

military use, which are currently 

identified in WAML Category 17.c. 

However, this proposed rule would not 

include in paragraph .y those items that 

are ‘‘specially designed’’ for defense 

articles on the USML. Because this 

proposed rule does not list specific 

materials under paragraph .y, subparagraphs .y.1 through .y.98 would be 

reserved for possible future use. 

Of particular significance to this rule, 

as noted in the November 7 rule, 

materials currently controlled by USML 

Category XIII(f), not identified in 

another USML Category, and not 

identified in ECCN 0C617 through this 

proposed rule, will likely be captured in 

other ‘‘600 series’’ ECCNs published in 

future proposed rules. In each instance, 

the materials will likely be classified in 

the C entry related to the end items for 

which the materials are specially 

designed. For example, as stated in the 

November 7 proposed rule, materials 

specially designed for military aircraft 

that are currently controlled under 

USML Category XIII(f) would be 

captured by ECCN 9C610, which 

controls materials ‘‘specially designed’’ 

for military aircraft controlled by ECCN 

9A610. 

New ECCN 0D617: ‘‘Software’’ 

‘‘Specially Designed’’ for Items 

Controlled by ECCN 0A617, 0B617 or 

0C617 

ECCN 0D617.a would control 

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

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul or refurbishing of 

commodities controlled by ECCN 

0A617, ‘‘equipment’’ controlled by 

ECCN 0B617, or materials controlled by 

ECCN 0C617. Consistent with the other 

proposed ‘‘600 series’’ software controls, 

the .y paragraphs for ECCN 0D617 

would control specific ‘‘software’’ 

‘‘specially designed’’ for the 

‘‘production,’’ ‘‘development,’’ or 

operation or maintenance of 

commodities controlled by ECCN 

0A617.y, 0B617.y or 0C617.y. 

Paragraphs .b through .x would be 

reserved for possible for future use. 

Because this proposed rule does not list 

specific materials under paragraph .y, 

sub-paragraphs .y.1 through .y.98 also 

would be reserved for possible future 

use. 

New ECCN 0E617: ‘‘Technology’’ 

‘‘Required’’ for Items Controlled by 

ECCN 0A617, 0B617, 0C617 or 0D617 

ECCN 0E617.a would control 

‘‘technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul or refurbishing of 

commodities controlled by ECCN 

0A617, ‘‘equipment’’ controlled by 


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ECCN 0B617, materials controlled by 

ECCN 0C617, or ‘‘software’’ controlled 

by ECCN 0D617. Items controlled by 

ECCN 0E617 would include 

‘‘technology’’ currently in ECCN 0E018 

for the ‘‘production’’ of crew protection 

kits used as protective cabs (currently in 

ECCN 0A018.a and proposed for ECCN 

0A617). Paragraphs .b through .x would 

be reserved for possible for future use. 

Subparagraph .y.1 of ECCN 0E617 

would control specific ‘‘technology’’ 

‘‘required’’ for the ‘‘development,’’ 

‘‘production,’’ operation, installation, 

maintenance, repair, overhaul or 

refurbishing of items controlled by 

ECCNs 0A617.y, 0B617.y, 0C617.y or 

0D617.y. ECCN 0E617.y.1 would control 

‘‘technology’’ for military powercontrolled searchlights and related 

items, which would be classified under 

proposed ECCN 0A617.y.3 (moving 

from ECCN 0A918.a). The ‘‘technology’’ 

for such items is currently not classified 

on the CCL, but if this rule is 

implemented, it would be classified 

under ECCN 0E617.y.1. Subparagraphs 

.y.2 through .y.98 would be reserved for 

possible future use. 

Including ‘‘.y.99’’ Paragraphs in ‘‘600 

Series’’ ECCNs 

ECCNs 0A617, 0B617, 0C617, 0D617 

and 0E617 would also contain a 

paragraph ‘‘.y.99,’’ that would control 

any item that: (i) Has been determined, 

in an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR; and (ii) would otherwise be 

controlled elsewhere under one of the 

Category 0, ‘‘600 series.’’ 

Applicable Controls 

All items in these proposed 0Y617 

ECCNs (except items in the .y 

paragraphs) would be subject to national 

security (NS Column 1), regional 

stability (RS Column 1) and 

antiterrorism (AT Column 1) controls. 

Items in the .y paragraphs would be 

subject only to antiterrorism (AT 

Column 1) controls. 

Under ECCN 0A018, ‘‘construction 

equipment built to military 

specifications, including equipment 

specially designed for airborne 

transport; and specially designed parts 

and accessories for such construction 

equipment, including crew protection 

kits used as protective cabs’’ are 

currently controlled for national 

security, antiterrorism and United 

Nations reasons. Under proposed ECCN 

0A617.a, they would be controlled for 

national security, regional stability and 

antiterrorism reasons, but no longer for 

United Nations reasons. Controlling 

these items for United Nations reasons 

is unnecessary in light of the November 

7 proposed rule’s amendment to the RS 

Column 1 licensing policy, which stated 

that there would be a general policy of 

denial for ‘‘600 series’’ items if the 

destination is subject to a United States 

arms embargo. A list of such 

destinations is identified in proposed 

section 740.2(a)(12), set forth in the 

November 7 proposed rule. 

In addition, control of power 

controlled searchlights and control units 

therefor, designed for military use, and 

equipment mounting such units; and 

‘‘parts,’’ ‘‘components,’’ and 

‘‘accessories and attachments’’ 

‘‘specially designed’’ therefor, would be 

moved from ECCN 0A918.a to ECCN 

0A617.y.3. Under ECCN 0A918, such 

items are controlled for regional 

stability, antiterrorism and United 

Nations reasons, but under proposed 

ECCN 0A617.y.3, they would be 

controlled for antiterrorism reasons 

only. More advanced alternatives to 

ECCN 0A918 items exist today 

compared to items currently controlled 

under ECCN 0A918. For this reason, 

there is no longer a need to control such 

items for regional stability reasons. The 

rationale for removing the United 

Nations reason for control is the same as 

that for crew protection kits discussed 

above. 

Revision to Three ECCNs: 0A018, 0A918 

and 0E018 

As discussed above, this proposed 

rule would remove ‘‘construction 

equipment built to military 

specifications, including specially 

designed for airborne transport; and 

specially designed parts and accessories 

for such construction equipment, 

including crew protection kits used as 

protective cabs’’ from ECCN 0A018.a 

and add them to the .a paragraph of 

proposed ECCN 0A617. It would also 

move ‘‘power controlled searchlights 

and control units therefor, designed for 

military use, and equipment mounting 

such units; and specially designed parts 

and accessories therefor’’ from ECCN 

0A918.a to the .y.3 paragraph of 

proposed ECCN 0A617. 

Accordingly, this rule would amend 

ECCN 0A918 to remove paragraph .a 

and provisions related to that paragraph. 

The related controls paragraph would be 

amended to provide a cross-reference to 

proposed ECCN 0A617.y.3. 

In addition, this rule would amend 

ECCN 0A018.a to cross-reference new 

ECCN 0A617.a, and would amend ECCN 

0E018 to add a note stating that this 

ECCN no longer controls ‘‘technology’’ 

for items formerly classified under 

ECCN 0A018.a, which would now be 

classified under ECCN 0A617.a. Under 

this rule, the technology for such items, 

as noted above, would be classified 

under ECCN 0E617.a. 

Note with respect to the proposed 

movement of ECCN 0A018.a items to 

proposed ECCN 0A617.a that in the July 

15 proposed rule, BIS proposed moving 

ECCN 0A018.a items to proposed ECCN 

0A606.a. Thereafter, on December 6, 

2011, BIS published another proposed 

rule (76 FR 76085) that included 

revisions to the text of ECCN 0A606.a to 

cover a broad array of military vehicles, 

both armed and unarmed. While the 

revised proposal for ECCN 0A606.a was 

intended to include 0A018.a items, it 

did not explicitly name such items. 

After further reflection, BIS has 

concluded that expressly identifying 

military construction equipment in 

ECCN 0A617.a, rather than including it 

in a broad category of armed and 

unarmed military vehicles in ECCN 

0A606.a, would be more informative 

and less likely to confuse the public. In 

addition, the items currently classified 

under ECCN 0A018.a are identified in 

WAML Category 17. Accordingly, this 

rule would include construction 

equipment specially designed for 

military use and related items in 

proposed ECCN 0A617.a, to promote 

clarity and to further the 

Administration’s goal of aligning the 

600 series ECCNs with the WAML. 

Neither the December 6 proposed rule 

nor this proposed rule would change the 

license requirements or the license 

exception eligibility originally proposed 

for construction equipment and related 

items in the July 15 proposed rule. 

Corresponding Amendments 

To implement the regional stability 

controls that apply to the five new ‘‘600 

series’’ ECCNs noted above, this 

proposed rule would amend 

§ 742.6(a)(1) of the EAR to apply the RS 

Column 1 licensing policy to items 

classified under ECCNs 0A617, 0B617, 

0C617, 0D617 and 0E617 (except the .y 

paragraphs). 

In conjunction with the proposed 

control on ‘‘metal embrittlement agents’’ 

in new ECCN 0A617.f, this rule 

proposes adding to section 772.1 of the 

EAR (Definitions of terms as used in the 

EAR) to define that term as it currently 

is in USML Category XIII(m). 

Relationship to the July 15 and 

November 7 Proposed Rules 

As referenced above, the purpose of 

the July 15 proposed rule was to 

establish the framework to support the 

transfer of items that the President 

determines no longer warrant control on 

the USML from the USML to the CCL. 

To facilitate that goal, the July 15 


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proposed rule contains definitions and 

concepts that were meant to be applied 

across categories. However, as BIS 

undertakes rulemakings to move 

specific categories of items from the 

USML to the CCL, there may be 

unforeseen issues or complications that 

may require BIS to reexamine those 

definitions and concepts. The comment 

period for the July 15 proposed rule 

closed on September 13, 2011. In the 

November 7 proposed rule, BIS 

proposed several changes to those 

definitions and concepts. The comment 

period for the November 7 proposed 

rule closed on December 22, 2011. 

To the extent that this rule’s proposals 

affect any provision in either of those 

proposed rules or that any provisions in 

either of those proposed rules affect this 

proposed rule, BIS will consider 

comments on those provisions so long 

as they are within the context of the 

changes proposed in this rule. 

BIS believes that the following 

provisions of the July 15 proposed rule 

and the November 7 proposed rule are 

among those that could affect this 

proposed rule, but because those rules 

remain under review, BIS does not 

know yet how exactly they may impact 

this rule: 

• De minimis provisions in § 734.4; 

• Restrictions on use of license 

exceptions in §§ 740.2, 740.10, 740.11, 

and 740.20; 

• Change to national security 

licensing policy in § 742.4; 

• Requirement to request 

authorization to use License Exception 

STA (strategic trade authorization) for 

end items in 600 series ECCNs and 

procedures for submitting such requests 

in §§ 740.2, 740.20, 748.8 and Supp. No. 

2 to part 748; 

• Addition of ‘‘600 series’’ items to 

Supplement No. 2 to Part 744—List of 

Items Subject to the Military End-Use 

Requirement of § 744.21; and 

• Definitions of terms in § 772.1. 

BIS believes that the following 

provisions of this proposed rule are 

among those that could affect the 

provisions of the July 15 and November 

7 proposed rules: 

• Additional ‘‘600 series’’ items 

identified in the RS Column 1 licensing 

policy described in § 742.6. 

Effects of This Proposed Rule 

BIS believes that the principal effect 

of this rule will be to provide greater 

flexibility for exports and reexports to 

NATO member countries and other 

multiple-regime-member countries of 

items the President determines no 

longer warrant control on the USML. 

This greater flexibility will be in the 

form of: availability of license 

exceptions, particularly License 

Exceptions RPL (servicing and 

replacement of parts and equipment) 

and STA (strategic trade authorization); 

eliminating the requirements for 

manufacturing license agreements and 

technical assistance agreements in 

connection with exports of technology; 

reducing or eliminating exporter and 

manufacturer registration requirements 

and associated registration fees; and 

applying the EAR’s de minimis 

threshold principle for items 

constituting less than a de minimis 

amount of controlled U.S.-origin content 

in foreign-made items. Some of these 

specific effects are discussed in more 

detail below. 

De minimis 

The July 15 proposed rule would 

impose certain unique de minimis 

requirements on items controlled under 

the new ‘‘600 series’’ ECCNs. Section 

734.3 of the EAR provides, inter alia, 

that, under certain conditions, items 

made outside the United States that 

incorporate items subject to the EAR are 

not subject to the EAR if they do not 

exceed a de minimis percentage of 

controlled U.S. origin content. 

Depending on the destination, the de 

minimis percentage can be either 10 

percent or 25 percent. If the July 15 

proposed rule’s amendments at § 734.4 

of the EAR are adopted, the new ECCNs 

0A617, 0B617, 0C617, 0D617, and 

0E617 proposed in this rule would be 

subject to the de minimis provisions set 

forth in the July 15 proposed rule. 

Foreign-made items incorporating items 

controlled under the new ECCNs would 

become eligible for de minimis 

treatment at the 10 percent level (i.e., a 

foreign-made item is not subject to the 

EAR, for de minimis purposes, if the 

value of its U.S.-origin controlled 

content does not exceed 10 percent of 

foreign-made item’s value). In contrast, 

the AECA does not permit the ITAR to 

have a de minimis treatment for USMLlisted items, regardless of the 

significance or insignificance of the 

U.S.-origin content or the percentage of 

U.S.-origin content in the foreign-made 

item (i.e., USML-listed items remain 

subject to the ITAR when they are 

incorporated abroad into a foreign-made 

item, regardless of either of these 

factors). In addition, foreign-made items 

that incorporate any items that are 

currently classified under an 018 ECCN 

(e.g., ECCN 0E018) and that are moved 

to a new ‘‘600 series’’ ECCN (e.g., ECCN 

0E617) would be subject to the EAR if 

those foreign-made items contain more 

than 10 percent U.S.-origin controlled 

content, regardless of the destination 

and the proportion of the U.S.-origin 

controlled content accounted for by the 

former 018 ECCN items. 

Use of License Exceptions 

The July 15 proposed rule would 

impose certain restrictions on the use of 

license exceptions for items that would 

be controlled under the new ‘‘600 

series’’ ECCNs on the CCL. For example, 

proposed § 740.2(a)(12) would make 

‘‘600 series’’ items that are destined for 

a country subject to a United States 

arms embargo ineligible for shipment 

under a license exception, except where 

authorized by License Exception GOV 

under § 740.11(b)(2)(ii) of the EAR. BIS 

believes that, even with the July 15 and 

November 7 proposed restrictions on 

the use of license exceptions for ‘‘600 

series’’ items, the restrictions on those 

items currently on the USML would be 

reduced, particularly with respect to 

exports to NATO members and 

multiple-regime member countries, if 

those items are moved from the USML 

to proposed ECCN 0A617, 0B617 or 

0C617. BIS also believes that, in 

practice, moving items from a 018 ECCN 

to a new ‘‘600 series’’ ECCN (e.g., the 

construction equipment built to military 

specifications and related items that 

would move from ECCN 0A018.a to 

proposed ECCN 0A617.a) would have 

little effect on license exception 

availability for those items. However, 

BIS is aware of two situations (the use 

of License Exceptions GOV and STA) in 

which movement of items from a 018 

ECCN to a new ‘‘600 series’’ ECCN 

could, in practice, impose greater limits 

on the use of license exceptions than 

currently is the case. 

First, the July 15 proposed rule would 

limit the use of License Exception GOV 

for ‘‘600 series’’ commodities to 

situations in which the U.S. 

Government is the consignee and end 

user, or to situations in which the 

consignee or end user is the government 

of a country listed in § 740.20(c)(1). 

Currently, construction equipment built 

to military specifications and related 

items, classified under ECCN 0A018.a, 

may be exported under any provision of 

License Exception GOV to any 

destination authorized by that provision 

if all of the conditions of that provision 

are met and nothing else in the EAR 

precludes such shipment. 

Second, the July 15 proposed rule 

would: (i) Limit the use of License 

Exception STA for ‘‘end items’’ in ‘‘600 

series’’ ECCNs to those end items for 

which a specific request for License 

Exception STA eligibility (filed in 

conjunction with a license application) 

has been approved; and (ii) require that 

the end item be for ultimate end use by 

a foreign government agency of a type 


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specified in the July 15 proposed rule. 

The July 15 proposed rule also would 

limit exports of ‘‘600 series’’ parts, 

components, accessories, and 

attachments under License Exception 

STA for ultimate end use by the same 

set of end users. Neither the end-item 

restriction nor the restriction applicable 

to parts, components, accessories, and 

attachments currently applies to the use 

of License Exception STA for 

commodities classified under ECCN 

0A018.a, but the latter restriction would 

apply to these commodities under new 

ECCN 0A617.a. In addition, the July 15 

proposed rule would limit the shipment 

of ‘‘600 series’’ items under License 

Exception STA to destinations listed in 

§ 740.20(c)(1). Currently, the 

commodities classified under ECCN 

0A018.a (which would be moved to 

ECCN 0A617.a by this proposed rule) 

may be shipped under License 

Exception STA to destinations listed in 

§ 740.20(c)(1) or (c)(2). 

In addition, this proposed rule 

provides that STA-eligible items 

controlled under new ECCN 0A617, 

0B617, or 0C617 would not be subject 

to the restriction, proposed in the July 

15 rule, on using of License Exception 

STA for ‘‘end items’’ in ‘‘600 series’’ 

ECCNs unless a specific request for 

License Exception STA eligibility has 

been submitted to, and approved by, 

BIS. 

Items controlled under proposed 

ECCNs 0A617, 0B617 or 0C617 would 

be eligible for License Exception LVS 

(limited value shipments) up to a value 

of $1,500. Note that for items previously 

classified under ECCN 0A018.a that 

would, under this proposal, be 

classified under ECCN 0A918.a, the 

threshold for LVS availability would 

generally drop from $5,000 to $1,500 

with this proposed change (and increase 

from $0 to $1,500 for Rwanda). Items 

controlled under proposed ECCNs 

0A617, 0B617, 0C617, 0D617 or 0E617 

also would be eligible for License 

Exception TMP (temporary exports), 

and items controlled under proposed 

ECCNs 0A617, 0B617 or 0D617 would 

be eligible for License Exception RPL 

(servicing and replacement parts). 

Making U.S. Export Controls More 

Consistent With the Wassenaar 

Arrangement Munitions List Controls 

Since the beginning of the Export 

Control Reform Initiative, the 

Administration has stated that the 

reforms will be consistent with the 

United States’ obligations to the 

multilateral export control regimes. 

Accordingly, the Administration will, in 

this and subsequent proposed rules, 

exercise its national discretion to 

implement, clarify, and, to the extent 

feasible, align its controls with those of 

the regimes. For example, proposed 

ECCNs 0A617 and 0C617 implement, to 

the extent possible, the controls in 

WAML Category 17 pertaining to 

miscellaneous munitions items, while 

proposed ECCNs 0B617.a, 0D617 and 

0E617, to the extent possible, 

implement the controls in WAML 

Category 18 for production equipment, 

the controls in WAML Category 21 for 

software, and the controls in WAML 

Category 22 for technology. 

Other Effects: National Security and 

Regional Stability Controls 

Pursuant to the framework identified 

in the July 15 proposed rule, auxiliary 

and miscellaneous military 

commodities classified under ECCN 

0A617 (other than ECCN 0A617.y), 

along with related test inspection and 

production equipment, materials, 

software, and technology classified 

under ECCNs 0B617, 0C617, 0D617 or 

0E617 (except items classified under the 

.y paragraphs of these ECCNs) would be 

subject to the licensing policies that 

apply to items controlled for national 

security reasons, as described in 

§ 742.4(b)(1)—specifically, NS Column 1 

controls. In addition, commodities in 

ECCN 0A617 (other than 0A617.y), 

along with related test, inspection and 

production equipment, materials, 

software and technology classified 

under ECCNs 0B617, 0C617, 0D617 or 

0E617 (except items classified under the 

.y paragraphs of these ECCNs), would be 

subject to the regional stability licensing 

policies set forth in § 742.6(a)(1)— 

specifically, RS Column 1. 

The July 15 proposed rule would 

change § 742.4 to apply a general policy 

of denial to ‘‘600 series’’ items for 

destinations that are subject to a United 

States arms embargo. That policy would 

apply to all items controlled for national 

security (NS) reasons under this 

proposed rule. The November 7 

proposed rule would expand that 

general policy of denial to include ‘‘600 

series’’ items subject to the licensing 

policies that apply to items controlled 

for regional stability reasons, as 

described in § 742.6(b)(1)—specifically, 

RS Column 1. While this change might 

seem redundant for the items affected 

by this proposed rule, it ensures that a 

general denial policy would apply to 

any ‘‘600 series’’ items that are 

controlled for missile technology (MT) 

and regional stability (RS) reasons, but 

not for national security (NS) reasons (as 

would be the case for certain items 

affected by the November 7 proposed 

rule). 

Section-by-Section Description of the 

Proposed Changes 

• Section 742.6—ECCNs 0A617, 

0B617, 0C617, 0D617 and 0E617 would 

be added to § 742.6(a)(1) to impose an 

RS Column 1 license requirement and 

licensing policy, including a general 

policy of denial in Section 742.6(b)(1), 

for applications to export or reexport 

‘‘600 series’’ items to destinations that 

are subject to a United States arms 

embargo. 

• Section 772.1—The definition 

section of the EAR would be amended 

to include, in alphabetical order, the 

definition of the term ‘‘metal 

embrittlement agents’’ to correspond 

with the proposed classification of such 

items under ECCN 0A617.f. 

• Supplement No. 1 to part 774— 

ECCNs 0A617, 0B617, 0C617, 0D617 

and 0E617 would be added to 

Supplement No. 1 to part 774. ECCN 

0A018 would be removed and reserved, 

and the related controls paragraph 

would be amended to include a crossreference directing the public to 

proposed new ECCN 0A617.a for items 

currently controlled by ECCN 0A018.a. 

ECCN 0A918 would be amended to 

remove paragraph .a and provisions 

related to that paragraph. The related 

controls paragraph would be amended 

to include a cross-reference directing 

the public to proposed new ECCN 

0A617.y.3. And ECCN 0E018 would be 

amended to add a note cross-referencing 

controls in proposed ECCN 0E617.a. 

Request for Comments 

BIS seeks comments on this proposed 

rule. BIS will consider all comments 

received on or before July 2, 2012. All 

comments (including any personally 

identifying information or information 

for which a claim of confidentially is 

asserted either in those comments or 

their transmittal emails) will be made 

available for public inspection and 

copying. Parties who wish to comment 

anonymously may do so by submitting 

their comments via 

www.Regulations.gov, leaving the fields 

that would identify the commenter 

blank and including no identifying 

information in the comment itself. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as extended by the 

Notice of August 12, 2011, 76 FR 50661 

(August 16, 2011), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. BIS 

continues to carry out the provisions of 

the Act, as appropriate and to the extent 


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29570 Federal Register / Vol. 77, No. 97 / Friday, May 18, 2012 / Proposed Rules 

permitted by law, pursuant to Executive 

Order 13222. 

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, 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 rule has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget (OMB). 

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 proposed 

rule would affect two approved 

collections: Simplified Network 

Application Processing + System 

(control number 0694–0088), which 

includes, among other things, license 

applications, and License Exceptions 

and Exclusions (0694–0137). 

As stated in the July 15, 2011, 

proposed rule (76 FR 41958), BIS 

believes that the combined effect of all 

rules to be published adding items to 

the EAR that would be removed from 

the ITAR as part of the administration’s 

Export Control Reform Initiative would 

increase the number of license 

applications submitted by 

approximately 16,000 annually, 

resulting in an increase in burden hours 

of 5,067 (16,000 transactions at 17 

minutes each) under control number 

0694–0088. 

Some items formerly on the USML 

would become eligible for License 

Exception STA under this rule. As 

specified in the STA eligibility 

paragraph for proposed new ECCNs 

0A617, 0B617, and 0C617, such items 

would not need a determination of 

eligibility per § 740.20(g) of the EAR. As 

stated in the July 15 proposed rule, BIS 

believes that the increased use of 

License Exception STA resulting from 

the combined effect of all rules to be 

published adding items to the EAR that 

would be removed from the ITAR as 

part of the administration’s Export 

Control Reform Initiative would 

increase the burden associated with 

control number 0694–0137 by about 

23,858 hours (20,450 transactions at 1 

hour and 10 minutes each). 

BIS expects that this increase in 

burden would be more than offset by a 

reduction in burden hours associated 

with approved collections related to the 

ITAR. This proposed rule addresses 

controls on auxiliary and miscellaneous 

equipment, materials and related parts, 

components, test and production 

equipment, software, and technology. 

The largest impact of the proposed rule 

would likely apply to exporters of end 

items. Under the EAR, such items 

would become eligible for export to 

NATO member states and other close 

allies under License Exception STA. 

Use of License Exception STA imposes 

a paperwork and compliance burden 

because, for example, exporters must 

furnish information about the item 

being exported to the consignee and 

obtain from the consignee an 

acknowledgement and commitment to 

comply with the EAR. However, the 

Administration understands that 

complying with the requirements of 

STA is likely to be less burdensome 

than applying for licenses. For example, 

under License Exception STA, a single 

consignee statement can apply to an 

unlimited number of products, need not 

have an expiration date, and need not be 

submitted to the government in advance 

for approval. Suppliers with regular 

customers can tailor a single statement 

and assurance to match their business 

relationship rather than applying 

repeatedly for licenses with every 

purchase order to supply reliable 

customers in countries that are close 

allies or members of export control 

regimes, or both. 

Even in situations in which a license 

would be required under the EAR, the 

burden likely will be reduced compared 

to the license requirement of the ITAR. 

In particular, license applications for 

exports of technology controlled by 

ECCN 0E617 are likely to be less 

complex and burdensome than the 

authorizations required to export ITARcontrolled technology, i.e., 

Manufacturing License Agreements and 

Technical Assistance Agreements. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Regulatory Flexibility Act 

(RFA), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA), 5 U.S.C. 

601 et seq., generally requires an agency 

to prepare an initial regulatory 

flexibility analysis (IRFA) for any rule 

subject to the notice and comment 

rulemaking requirements under the 

Administrative Procedure Act (5 U.S.C. 

553) or any other statute. However, 

under section 605(b) of the RFA, if the 

head of an agency certifies that a rule 

will not have a significant impact on a 

substantial number of small entities, the 

RFA does not require the agency to 

prepare a regulatory flexibility analysis. 

Pursuant to section 605(b), the Chief 

Counsel for Regulation, Department of 

Commerce, certified to the Chief 

Counsel for Advocacy, Small Business 

Administration that this proposed rule, 

if promulgated, will not have a 

significant impact on a substantial 

number of small entities. 

Number of Small Entities 

The Bureau of Industry and Security 

(BIS) does not collect data on the size 

of entities that apply for and are issued 

export licenses. Although BIS is unable 

to estimate the exact number of small 

entities that would be affected by this 

rule, it acknowledges that this rule 

would affect some unknown number of 

them. 

Economic Impact 

This proposed rule is part of the 

Administration’s Export Control Reform 

Initiative. Under that initiative, the 

United States Munitions List (22 CFR 

part 121) (USML) will be revised to be 

a ‘‘positive’’ list, i.e., a list that does not 

use generic, catch-all controls on any 

part, component, accessory, attachment, 

or end item that was in any way 

specifically modified for a defense 

article, regardless of the article’s 

military or intelligence significance or 

non-military applications. At the same 

time, articles that the President 

determines no longer warrant control on 

the USML will become controlled on 

the Commerce Control List (CCL). Such 

items, along with certain military items 

that currently are on the CCL, will be 

identified in specific Export Control 

Classification Numbers (ECCNs) known 

as the ‘‘600 series’’ ECCNs. In addition, 

some items currently on the Commerce 

Control List will move from existing 

ECCNs to the new ‘‘600 series’’ ECCNs. 

This rule addresses certain 

miscellaneous equipment and related 

articles currently controlled in WAML 

Category 17 (Miscellaneous equipment, 

materials and ‘libraries’ and specially 

designed components) and USML 

Category XIII (Materials and 

Miscellaneous Articles). 

Changing the jurisdictional status of 

these USML articles would, potentially, 

reduce the burden on small entities (and 

other entities as well) through: (i) 

Eliminating some license requirements; 


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Federal Register / Vol. 77, No. 97 / Friday, May 18, 2012 / Proposed Rules 29571 

(ii) increasing availability of license 

exceptions; (iii) simplifying license 

application procedures; and (iv) 

reducing or eliminating registration fees. 

These amendments are part of the 

Administration’s effort to make the 

USML the U.S. Government’s list of 

critical military and intelligence items 

that warrant the stringent worldwide 

controls of the ITAR, while controlling 

all other military and intelligence items, 

particularly generic parts and 

components, through the CCL. BIS 

believes that the economic benefits for 

the proposed amendments include the 

significant reduction in the time spent 

determining and addressing issues 

associated with determining the 

jurisdictional status of such items now. 

In addition, parts and components 

currently controlled under the ITAR 

remain under ITAR control when 

incorporated into foreign-made items, 

regardless of the significance or 

insignificance of the item. This 

discourages foreign buyers from 

incorporating such U.S. content. The 

availability of de minimis treatment for 

items that are transferred to control 

under the EAR may reduce the 

disincentive to foreign manufacturers 

for purchasing U.S.-origin parts and 

components. 

Many exports and reexports of the 

Category XIII articles that would be 

placed on the CCL by this rule would 

become eligible for license exceptions 

that apply to shipments to U.S. 

Government agencies, thereby reducing 

the number of licenses that exporters of 

these items would need. License 

Exceptions under the EAR would allow 

suppliers to send routine replacement 

and low level parts to NATO member 

states and other close allies and export 

control regime partners for use by those 

governments, and for use by contractors 

building equipment for those 

governments or for the U.S. Government 

without having to obtain export 

licenses. Under License Exception 

Strategic Trade Authorization (STA), the 

exporter would need to furnish 

information about the item being 

exported to the consignee and obtain a 

statement from the consignee that, 

among other things, would commit the 

consignee to comply with the EAR and 

other applicable U.S. laws. Because 

such statements and obligations can 

apply to an unlimited number of 

transactions and have no expiration 

date, they would impose a net reduction 

in burden on transactions that the 

government routinely approves through 

the license application process that the 

License Exception STA statements 

would replace. 

Even for exports and reexports for 

which a license would be required 

under the proposed rule, the process 

would be simpler and less costly under 

the EAR. When a USML Category XIII 

article is moved to the CCL, the number 

of destinations for which a license is 

required would remain unchanged. 

However, the burden on the license 

applicant would decrease because the 

licensing procedure for CCL items is 

simpler and more flexible than the 

license procedure for USML articles. 

Under the USML licensing procedure, 

an applicant must include a purchase 

order or contract with its application. 

There is no such requirement under the 

CCL licensing procedure. This 

difference gives the CCL applicant at 

least two advantages. First, the 

applicant has a way to determine 

whether the U.S. Government will 

authorize the transaction before it enters 

into potentially lengthy, complex and 

expensive sales presentations or 

contract negotiations. Under the USML 

procedure, the applicant must caveat all 

sales presentations with a reference to 

the need for government approval, and 

is more likely to engage in substantial 

effort and expense only to find that the 

government will reject the application. 

Second, a CCL license applicant need 

not limit its application to the quantity 

or value of one purchase order or 

contract. It may apply for a license to 

cover all of its expected exports or 

reexports to a specified consignee over 

the life of a license (normally two years, 

but may be longer if circumstances 

warrant a longer period), thus reducing 

the total number of licenses for which 

the applicant must apply. 

In addition, many applicants 

exporting or reexporting items that this 

rule would transfer from the USML to 

the CCL would realize cost savings 

through the elimination of some or all 

registration fees currently assessed 

under the USML’s licensing procedure. 

Currently, USML applicants must pay to 

use the USML licensing procedure even 

if they never actually are authorized to 

export. Registration fees for 

manufacturers and exporters of articles 

on the USML start at $2,250 per year, 

increase to $2,750 for exporters 

applying for one to ten licenses per year 

and further increase to $2,750, plus 

$250 per license application (subject to 

a maximum of three percent of total 

application value) for those who need to 

apply for more than ten licenses per 

year. Conversely, there are no 

registration or application processing 

fees for applications to export items 

listed on the CCL. Once the Category 

XIII items that are the subject to this 

rulemaking are moved from the USML 

to the CCL, entities currently applying 

for licenses from the Department of 

State will find their registration fees 

reduced if the number of USML licenses 

those entities need declines. If an 

entity’s entire product line is moved to 

the CCL, its ITAR registration and 

registration fee requirement will be 

eliminated. 

De minimis treatment under the EAR 

would also become available for all 

items that this rule proposes to transfer 

from the USML to the CCL. Items 

subject to the ITAR remain subject to 

the ITAR when they are incorporated 

abroad into a foreign-made product 

regardless of the percentage of U.S. 

content in that foreign-made product. 

However, foreign-made products 

incorporating items that this rule would 

move to the CCL would be subject to the 

EAR only if their total controlled U.S.- 

origin content exceeds 10 percent. 

Because including small amounts of 

U.S.-origin content would not subject 

foreign-made products to the EAR, 

foreign manufacturers would have less 

incentive to refrain from purchasing 

such U.S.-origin parts and components, 

a development that potentially would 

mean greater sales for U.S. suppliers, 

including small entities. 

For items currently on the CCL that 

would be moved from existing ECCNs to 

the new ‘‘600 series,’’ license exception 

availability would be narrowed 

somewhat and the applicable de 

minimis threshold for foreign-made 

products containing those items would 

in some cases be reduced from 25 

percent to 10 percent. However, BIS 

believes that any increased burden 

imposed by those actions would be 

offset substantially by the reduction in 

burden attributable to moving items 

from the USML to CCL and the 

compliance benefits associated with the 

consolidation of all WAML items 

subject to the EAR in one series of 

ECCNs. These changes also would 

reduce the burden on small entities by 

resolving actual and potential 

jurisdictional uncertainty with respect 

to items that are related to articles 

controlled by USML Category XIII. 

Conclusion 

BIS is unable to determine the precise 

number of small entities that would be 

affected by this rule. Based on the facts 

and conclusions set forth above, BIS 

believes that any burdens imposed by 

this rule would be offset by a reduction 

in the number of items that would 

require a license, increased 

opportunities for use of license 

exceptions for exports to certain 

countries, simpler export license 

applications, reduced or eliminated 


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29572 Federal Register / Vol. 77, No. 97 / Friday, May 18, 2012 / Proposed Rules 

registration fees, and application of a 

de minimis threshold for foreign-made 

items incorporating U.S.-origin parts 

and components, which would reduce 

the incentive for foreign buyers to 

design out or avoid U.S.-origin content. 

For these reasons, the Chief Counsel for 

Regulation of the Department of 

Commerce certified to the Chief Counsel 

for Advocacy of the Small Business 

Administration that this rule, if adopted 

in final form, would not have a 

significant economic impact on a 

substantial number of small entities. 

Accordingly, no IRFA is required, and 

none has been prepared. 

List of Subjects 

15 CFR Part 742 

Exports, Terrorism. 

15 CFR Part 772 

Exports. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, parts 742, 772 and 774 of the 

Export Administration Regulations (15 

CFR parts 730–774) are proposed to be 

amended as follows: 

PART 742—[AMENDED] 

1. 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 12, 2011, 76 FR 

50661 (August 16, 2011); Notice of November 

9, 2011, 76 FR 70319 (November 10, 2011). 

2. Section 742.6 is amended by 

revising paragraph (a)(1) to read as 

follows: 

§ 742.6 Regional stability. 

(a) * * * 

(1) RS Column 1 License 

Requirements in General. As indicated 

in the CCL and in RS column 1 of the 

Commerce Country Chart (see 

Supplement No. 1 to part 738 of the 

EAR), a license is required to all 

destinations, except Canada, for items 

described on the CCL under ECCNs 

0A521; 0A606 (except 0A606.b and .y); 

0A617 (except 0A617.y); 0B521; 0B606 

(except 0B606.y); 0B617 (except 

0B617.y); 0C521; 0C606 (except 

0C606.y); 0C617 (except 0C617.y), 

0D521; 0D606 (except 0D606.y); 0D617 

(except 0D617.y) 0E521; 0E606 (except 

0E606.y); 0E617 (except 0E617.y); 

1A607 (except 1A607.y); 1B607 (except 

1B607.y); 1B608 (except 1B608.y); 

1C607; 1C608; 1D607 (except 1D607.y); 

1D608 (except 1D608.y); 1E607 (except 

1E607.y); 1E608 (except 1E608.y); 

6A002.a.1, a.2, a.3, .c, or .e; 6A003.b.3, 

and b.4.a; 6A008.j.1; 6A998.b; 6D001 

(only ‘‘software’’ for the ‘‘development’’ 

or ‘‘production’’ of items in 6A002.a.1, 

a.2, a.3, .c; 6A003.b.3 and .b.4; or 

6A008.j.1); 6D002 (only ‘‘software’’ for 

the ‘‘use’’ of items in 6A002.a.1, a.2, a.3, 

.c; 6A003.b.3 and .b.4; or 6A008.j.1); 

6D003.c; 6D991 (only ‘‘software’’ for the 

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

of equipment classified under 6A002.e 

or 6A998.b); 6E001 (only ‘‘technology’’ 

for ‘‘development’’ of items in 

6A002.a.1, a.2, a.3 (except 

6A002.a.3.d.2.a and 6A002.a.3.e for lead 

selenide focal plane arrays), and .c or .e, 

6A003.b.3 and b.4, or 6A008.j.1); 6E002 

(only ‘‘technology’’ for ‘‘production’’ of 

items in 6A002.a.1, a.2, a.3, .c, or .e, 

6A003.b.3 or b.4, or 6A008.j.1); 6E991 

(only ‘‘technology’’ for the 

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

of equipment classified under 6A998.b); 

6D994; 7A994 (only QRS11–00100–100/ 

101 and QRS11–0050–443/569 

Micromachined Angular Rate Sensors); 

7D001 (only ‘‘software’’ for 

‘‘development’’ or ‘‘production’’ of 

items in 7A001, 7A002, or 7A003); 

7E001 (only ‘‘technology’’ for the 

‘‘development’’ of inertial navigation 

systems, inertial equipment, and 

specially designed components therefor 

for civil aircraft); 7E002 (only 

‘‘technology’’ for the ‘‘production’’ of 

inertial navigation systems, inertial 

equipment, and specially designed 

components therefor for civil aircraft); 

7E101 (only ‘‘technology’’ for the ‘‘use’’ 

of inertial navigation systems, inertial 

equipment, and specially designed 

components for civil aircraft); 8A609 

(except 8A609.y); 8B609 (except 

8B609.y); 8C609 (except 8C609.y); 

8D609 (except software for the 

‘‘development,’’ ‘‘production,’’ 

operation, or maintenance of 

commodities controlled by 8A609.y, 

8B609.y, or 8C609.y); 8E609 (except 

‘‘technology’’ for the ‘‘development,’’ 

‘‘production,’’ operation, installation, 

maintenance, repair, or overhaul of 

commodities controlled by 8A609.y, 

8B609.y, or 8C609.y); 9A610 (except 

9A610.y); 9A619 (except 9A619.y); 

9B610 (except 9B610.y); 9B619 (except 

9B619.y); 9C610 (except 9C610.y); 

9C619 (except 9C619.y); 9D610 (except 

software for the ‘‘development,’’ 

‘‘production,’’ operation, installation, 

maintenance, repair, or overhaul of 

commodities controlled by 9A610.y, 

9B610.y, or 9C610.y); 9D619 (except 

software for the ‘‘development,’’ 

‘‘production,’’ operation, or 

maintenance of commodities controlled 

by 9A619.y, 9B619.y, or 9C619.y); 

9E610 (except ‘‘technology’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, or overhaul of commodities 

controlled by ECCN 9A610.y, 9B610.y, 

or 9C610.y); and 9E619 (except 

‘‘technology’’ for the ‘‘development,’’ 

‘‘production’’ operation, installation, 

maintenance, repair, or overhaul of 

commodities controlled by ECCN 

9A619.y, 9B619.y, or 9C619.y). 

* * * * * 

PART 772—[AMENDED] 

3. The authority citation for 15 CFR 

part 772 continues to read as follows: 

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

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

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

12, 2011, 76 FR 50661 (August 16, 2011). 

4. Section 772.1 is amended by 

adding a definition for ‘‘metal 

embrittlement agents’’ in alphabetical 

order to read as follows: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

* * * * * 

Metal embrittlement agents. (Cat. 0)— 

Non-lethal weapon substances that alter 

the crystal structure of metals within a 

short time span. Metal embrittling 

agents severely weaken metals by 

chemically changing their molecular 

structure. These agents are compounded 

in various substances to include 

adhesives, liquids, aerosols, foams and 

lubricants. 

* * * * * 

PART 774—[AMENDED] 

5. 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 12, 2011, 76 

FR 50661 (August 16, 2011). 

6. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items]— 

Export Control Classification Number 

(ECCN) 0A018 is amended 


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Federal Register / Vol. 77, No. 97 / Friday, May 18, 2012 / Proposed Rules 29573 

a. By adding a sentence to the end of 

the Related Controls paragraph in the 

List of Items Controlled section; and 

b. By removing and reserving 

paragraph .a in the Items paragraph of 

the List of Items Controlled section to 

read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

0A018 Items on the Wassenaar 

Munitions List 

* * * * * 

List of Items Controlled: 

Unit: * * * 

Related Controls: * * * 3) See ECCN 

0A617.a for items formerly controlled 

by ECCN 0A018.a. 

Related Definitions: * * * 

Items: 

a. [RESERVED]. 

* * * * * 

7. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items] 

add a new ECCN 0A617 between ECCNs 

0A018 and 0A918 to read as follows: 

0A617 Miscellaneous ‘‘Equipment,’’ 

Materials, and Related Commodities 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire entry except 0A617.y ....................................................................................................................................... NS Column 1. 

RS applies to entire entry except 0A617.y ....................................................................................................................................... RS Column 1. 

AT applies to entire entry ................................................................................................................................................................. AT Column 1. 

License Exceptions 

LVS: $1500 

GBS: N/A 

CIV: N/A 

STA: 

(1) Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2)) of the 

EAR may not be used for any item in 

0A617. 

(2) Paragraph (c)(1) of License 

Exception STA (§ 740.20(c)(1)) may be 

used for items in 0A617 without the 

need for a determination described in 

§ 740.20(g). 

List of Items Controlled 

Unit: End items in number; parts, 

components, accessories and 

attachments in $ value. 

Related Controls: (1) Defense articles, 

such as materials made from classified 

information, that are controlled by 

USML Category XIII, and technical data 

(including software) directly related 

thereto, are subject to the ITAR. (2) See 

ECCN 0A919 for foreign-made ‘‘military 

commodities’’ that incorporate more 

than 10% U.S.-origin ‘‘600 series’’ 

items. (3) For controls on self-contained 

diving and underwater swimming 

apparatus and related commodities, see 

ECCN 8A620.f. (4) For controls on 

robots, robot controllers, and robot endeffectors, see USML Category VII and 

ECCNs 0A606 and 2B007. (5) 

‘‘Libraries,’’ i.e., parametric technical 

databases, ‘‘specially designed’’ for 

military use with equipment controlled 

by USML or a ‘‘600 series’’ ECCN are 

controlled by the technical data and 

technology controls pertaining to such 

items. (6) For controls on nuclear power 

generating equipment or propulsion 

equipment, including ‘‘nuclear 

reactors,’’ ‘‘specially designed’’ for 

military use, and parts and components 

‘‘specially designed’’ therefor, see 

USML Categories VI, XIII, XV, and XX. 

(7) Simulators ‘‘specially designed’’ for 

military ‘‘nuclear reactors’’ are 

controlled by USML Category IX(b). (8) 

Laser protection equipment (e.g., eye 

and sensor protection) ‘‘specially 

designed’’ for military use are subject to 

the controls of USML Category X(a)(7). 

(9) ‘‘Fuel cells’’ ‘‘specially designed’’ for 

a defense article not on the USML or a 

commodity controlled by a ‘‘600 series’’ 

ECCN are controlled according to the 

corresponding ‘‘600 series’’ ECCN for 

such end items. (10) See USML Category 

XV and ECCN 9A515 for controls on 

fuel cells specially designed for satellite 

or spacecraft. 

Items: 

a. Construction equipment ‘‘specially 

designed’’ for military use, including 

such equipment ‘‘specially designed’’ 

for transport in aircraft controlled by 

USML VIII(a) or ECCN 9A610.a; and 

‘‘parts,’’ ‘‘components’’ and ‘‘accessories 

and attachments’’ ‘‘specially designed’’ 

therefor, including crew protection kits 

used as protective cabs; 

b. Concealment and deception 

equipment ‘‘specially designed’’ for 

military application, including special 

paints, decoys, smoke or obscuration 

equipment and simulators, and ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ ‘‘specially designed’’ 

therefor, not controlled by USML 

Category XIII. 

c. Ferries, bridges (other than those 

described in ECCN 0A606 or USML 

Category VII), and pontoons ‘‘specially 

designed’’ for military use. 

d. Test models ‘‘specially designed’’ 

for the ‘‘development’’ of defense 

articles controlled by the USML or 

commodities controlled by a ‘‘600 

series’’ ECCN. 

e. Photointerpretation, stereoscopic 

plotting and photogrammetry 

equipment ‘‘specially designed’’ for 

military use, and ‘‘parts,’’ 

‘‘components,’’ ‘‘accessories and 

attachments’’ ‘‘specially designed’’ 

therefor. 

f. ‘‘Metal embrittlement agents.’’ 

g. Through x. [RESERVED] 

y. Other commodities as follows: 

y.1. Containers ‘‘specially designed’’ 

for defense articles or items controlled 

by a ‘‘600 series’’ ECCN. 

y.2 Field generators ‘‘specially 

designed’’ for military use. 

y.3 Power controlled searchlights 

and control units therefor, ‘‘specially 

designed’’ for military use, and 

‘‘equipment’’ mounting such units; and 

‘‘parts,’’ ‘‘components’’ and ‘‘accessories 

and attachments’’ ‘‘specially designed’’ 

therefor. 

y.4 to y.98. [RESERVED] 

y.99. Commodities not identified on 

the CCL that (i) have been determined, 

in an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 0A617. 

8. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

Export Control Classification Number 

(ECCN) 0A918 is amended 

a. By revising the License Exception 

section; and 

b. By revising the List of Items 

Controlled section to read as follows: 

0A918 Miscellaneous Military 

Equipment Not on the Wassenaar 

Munitions List 

* * * * * 

License Exceptions 

LVS: $1,500, $0 for Rwanda 

GBS: N/A 

CIV: N/A 

List of Items Controlled 

Unit: In Number. 


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29574 Federal Register / Vol. 77, No. 97 / Friday, May 18, 2012 / Proposed Rules 

Related Controls: See ECCN 

0A617.y.3 for items formerly controlled 

by ECCN 0A918.a. 

Related Definitions: N/A 

Items: Bayonets. 

9. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

add a new ECCN 0B617 between ECCNs 

0B006 and 0B986 to read as follows: 

0B617 Test, Inspection, and 

Production ‘‘Equipment’’ and Related 

Commodities ‘‘Specially Designed’’ for 

the ‘‘Development’’ or ‘‘Production’’ of 

Commodities Controlled by ECCN 

0A617.a or USML Category XIII 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire entry except 0B617.y ....................................................................................................................................... NS Column 1. 

RS applies to entire entry except 0B617.y ....................................................................................................................................... RS Column 1. 

AT applies to entire entry ................................................................................................................................................................. AT Column 1. 

License Exceptions 

LVS: $1500 

GBS: N/A 

CIV: N/A 

STA: 

(1) Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2)) of the 

EAR may not be used for any item in 

0B617. 

(2) Paragraph (c)(1) of License 

Exception STA (§ 740.20(c)(1)) may be 

used for items in 0B617 without the 

need for a determination described in 

§ 740.20(g). 

List of Items Controlled 

Unit: N/A 

Related Controls: 

Related Definitions: N/A 

Items: a. Test, inspection, and 

production ‘‘equipment’’ not controlled 

by USML Category XIII(k) ‘‘specially 

designed’’ for the ‘‘production’’ or 

‘‘development’’ of commodities 

controlled by ECCN 0A617 or USML 

Category XIII. 

b. through .x [RESERVED]. 

y.1 through .y.98 [RESERVED] 

y.99 Commodities not identified on 

the CCL that (i) have been determined, 

in an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 0B617. 

NOTE TO 0B617: Field engineer 

equipment ‘‘specially designed’’ for use 

in a combat zone, identified in WAML 

Category 17.d, and mobile repair shops 

‘‘specially designed’’ or modified to 

service military equipment, identified in 

WAML Category 17.j, are controlled by 

0B617 to the extent that the items are 

not included in USML Category XIII(k). 

10. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

add a new ECCN 0C617 after ECCN 

0C201 to read as follows: 

0C617 Miscellaneous Materials 

‘‘Specially Designed’’ for Military Use 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire entry except 0C617.y ...................................................................................................................................... NS Column 1. 

RS applies to entire entry except 0C617.y ...................................................................................................................................... RS Column 1. 

AT applies to entire entry ................................................................................................................................................................. AT Column 1. 

License Exceptions 

LVS: $1500 

GBS: N/A 

CIV: N/A 

(1) STA: Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2)) of the 

EAR may not be used for any item in 

0C617. 

(2) Paragraph (c)(1) of License 

Exception STA (§ 740.20(c)(1)) may be 

used for items in 0C617 without the 

need for a determination described in 

§ 740.20(g). 

List of Items Controlled 

Unit: End items in number; parts, 

component, accessories and attachments 

in $ value. 

Related Controls: For controls on 

other signature suppression materials, 

see USML Category XIII and ECCNs 

1C001 and 1C101. 

Related Definitions: 

Items: 

a. Materials, coatings and treatments 

for signature suppression, ‘‘specially 

designed’’ for military use and that are 

not controlled by USML Category XIII or 

ECCNs 1C001 or 1C101. 

b. through x. [RESERVED]. 

y.1 through y.98 [RESERVED]. 

y.99. Materials not identified on the 

CCL that (i) have been determined, in an 

applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 0C617. 

11. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items], 

add a new ECCN 0D617 between ECCNs 

0D001 and 0D999 to read as follows: 

0D617 ‘‘Software’’ ‘‘Specially 

Designed’’ for the ‘‘Development,’’ 

‘‘Production,’’ Operation, Installation, 

Maintenance, Repair, Overhaul or 

Refurbishing of Commodities 

Controlled by 0A617, ‘‘Equipment’’ 

Controlled by 0B617, or Materials 

Controlled by 0C617 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire entry except 0D617.y ...................................................................................................................................... NS Column 1. 

RS applies to entire entry except 0D617.y ...................................................................................................................................... RS Column 1. 

AT applies to entire entry ................................................................................................................................................................. AT Column 1. 


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License Exceptions 

CIV: N/A 

TSR: N/A 

STA: Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2))of the 

EAR may not be used for any ‘‘software’’ 

in 0D617. 

List of Items Controlled 

Unit: $ value 

Related Controls: ‘‘Software’’ directly 

related to articles controlled by USML 

Category XIII is subject to the control of 

USML paragraph XIII(l). 

Related Definitions: N/A 

Items: 

a. ‘‘Software’’ (other than ‘‘software’’ 

controlled in paragraph .y of this entry) 

‘‘specially designed’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation or maintenance of 

commodities controlled by ECCNs 

0A617 (except 0A617.y), 0B617 (except 

0B617.y), or 0C617 (except 0C617.y). 

b. to x. [RESERVED]. 

y. Specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘production,’’ 

‘‘development,’’ or operation or 

maintenance of commodities controlled 

by ECCN 0A617, 0B617 or 0C617, as 

follows: 

y.1. Specific ‘‘software’’ ‘‘specially 

designed’’ for the ‘‘production,’’ 

‘‘development,’’ operation or 

maintenance of commodities controlled 

by ECCN 0A617.y, 0B617.y or 0C617.y. 

y.2 through y.98 [RESERVED]. 

y.99. Software not identified on the 

CCL that (i) has been determined, in an 

applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 0D617. 

12. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items]— 

ECCN 0E018 is amended by adding a 

note at the end of the entry to read as 

follows: 

0E018 ‘‘Technology’’ for the 

‘‘Development,’’ ‘‘Production,’’ or 

‘‘Use’’ of Items Controlled by 0A018 

* * * * * 

Note: This ECCN no longer controls 

‘‘technology’’ for items formerly 

controlled by 0A018.a. See ECCN 

0A617.a for items formerly controlled 

by 0A018.a and see the ‘‘technology’’ 

controls for those items in ECCN 

0E617.a. 

13. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

0—Nuclear Materials, Facilities, and 

Equipment [and Miscellaneous Items] 

add a new ECCN 0E617 between ECCNs 

0E018 and 0E982 to read as follows: 

0E617 ‘‘Technology’’ ‘‘Required’’ for 

the ‘‘Development,’’ ‘‘Production,’’ 

Operation, Installation, Maintenance, 

Repair, Overhaul or Refurbishing of 

Commodities Controlled by 0A617, 

‘‘Equipment’’ Controlled by 0B617, 

Materials Controlled by 0C617, or 

‘‘Software’’ Controlled by 0D617 

License Requirements 

Reason for Control: NS, RS, AT 

Control(s) Country chart 

NS applies to entire entry except 0E617.y ....................................................................................................................................... NS Column 1. 

RS applies to entire entry except 0E617.y ....................................................................................................................................... RS Column 1. 

AT applies to entire entry ................................................................................................................................................................. AT Column 1. 

License Exceptions 

CIV: N/A 

TSR: N/A 

STA: Paragraph (c)(2) of License 

Exception STA (§ 740.20(c)(2)) of the 

EAR may not be used for any technology 

in 0E617. 

List of Items Controlled 

Unit: $ value 

Related Controls: Technical data 

directly related to articles controlled by 

USML Category XIII are subject to the 

control of USML paragraph XIII(l). 

Related Definitions: N/A 

Items: 

a. ‘‘Technology’’ (other than 

‘‘technology’’ controlled by paragraph .y 

of this entry) ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishing of 

commodities or ‘‘software’’ controlled 

by ECCN 0A617 (except 0A617.y), 

0B617 (except 0B617.y), 0C617 (except 

0C617.y), or 0D617 (except 0D617.y). 

b. through x. [RESERVED]. 

y. Specific ‘‘technology’’ ‘‘required’’ 

for the ‘‘production,’’ ‘‘development,’’ 

operation, installation, maintenance, 

repair, or overhaul of items controlled 

by ECCN 0A617, 0B617, 0C617 or 

0D617, as follows: 

y.1. Specific ‘‘technology’’ ‘‘required’’ 

for the ‘‘production,’’ ‘‘development,’’ 

operation, installation, maintenance, 

repair or overhaul of items controlled by 

ECCN 0A617.y, 0B617.y, 0C617.y or 

0D617.y. 

y.2. through y.98 [RESERVED]. 

y.99. ‘‘Technology’’ not identified on 

the CCL that (i) has been determined, in 

an applicable commodity jurisdiction 

determination issued by the U.S. 

Department of State, to be subject to the 

EAR and (ii) would otherwise be 

controlled elsewhere in ECCN 0E617. 

Dated: May 14, 2012. 

Kevin J. Wolf, 

Assistant Secretary of Commerce for Export 

Administration. 

[FR Doc. 2012–12124 Filed 5–17–12; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF STATE 

22 CFR Part 121 

RIN 1400–AD13 

[Public Notice 7883] 

Amendment to the International Traffic 

in Arms Regulations: Revision of U.S. 

Munitions List Category XIII 

AGENCY: Department of State. 

ACTION: Proposed rule. 

SUMMARY: As part of the President’s 

Export Control Reform effort, the 

Department of State proposes to amend 

the International Traffic in Arms 

Regulations (ITAR) to revise Category 

XIII (materials and miscellaneous 

articles) of the U.S. Munitions List 

(USML) to describe more precisely the 

materials warranting control on the 

USML. 

DATES: The Department of State will 

accept comments on this proposed rule 

until July 2, 2012. 

ADDRESSES: Interested parties may 

submit comments within 45 days of the 

date of publication by one of the 

following methods: 

• Email: 

DDTCResponseTeam@state.gov with the 


srobinson on DSK4SPTVN1PROD with PROPOSALS