61226 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 

meet a listing, we will determine whether 

your impairment(s) medically equals a 

listing. (See § 416.926 of this chapter.) 

Genitourinary disorders may be associated 

with disorders in other body systems, and we 

consider the combined effects of multiple 

impairments when we determine whether 

they medically equal a listing. If your 

impairment(s) does not medically equal a 

listing, we will also consider whether it 

functionally equals the listings. (See 

§ 416.926a of this chapter.) We use the rules 

in § 416.994a of this chapter when we decide 

whether you continue to be disabled. 

106.01 Category of Impairments, 

Genitourinary Disorders 

106.03 Chronic kidney disease, with 

chronic hemodialysis or peritoneal dialysis 

(see 106.00C1). 

106.04 Chronic kidney disease, with 

kidney transplant. Consider under a 

disability for 1 year following the transplant; 

thereafter, evaluate the residual impairment 

(see 106.00C2). 

106.05 Chronic kidney disease, with 

impairment of kidney function, with one of 

the following documented on at least two 

occasions at least 90 days apart during a 

consecutive 12-month period: 

A. Serum creatinine of 3 mg/dL or greater; 

OR 

B. Creatinine clearance of 30 ml/min/

1.73m2 or less; 

OR 

C. Estimated glomerular filtration rate 

(eGFR) of 30 ml/min/1.73m2 or less. 

106.06 Nephrotic syndrome, with A 

and B: 

A. Laboratory findings as described in 1 or 

2, documented on at least two occasions at 

least 90 days apart during a consecutive 12- 

month period: 

1. Serum albumin of 3.0 g/dL or less, or 

2. Proteinuria of 40 mg/m2/hr or greater; 

AND 

B. Anasarca (see 106.00C3) persisting for at 

least 90 days despite prescribed treatment. 

106.07 Congenital genitourinary disorder 

(see 106.00C4) requiring urologic surgical 

procedures at least three times in a 

consecutive 12-month period, with at least 30 

days between procedures. Consider under a 

disability for 1 year following the date of the 

last surgery; thereafter, evaluate the residual 

impairment. 

106.09 Complications of chronic kidney 

disease (see 106.00C5) requiring at least three 

hospitalizations within a consecutive 12- 

month period and occurring at least 30 days 

apart. Each hospitalization must last at least 

48 hours, including hours in a hospital 

emergency department immediately before 

the hospitalization. 

* * * * * 

[FR Doc. 2014–24114 Filed 10–9–14; 8:45 am] 

BILLING CODE 4191–02–P 

DEPARTMENT OF STATE 

22 CFR Parts 120, 121, 123, 126, and 

130 

[Public Notice 8898] 

RIN 1400–AD64 

Amendment to the International Traffic 

in Arms Regulations: Corrections, 

Clarifications, and Movement of 

Definitions 

AGENCY: Department of State. 

ACTION: Final rule. 

SUMMARY: In an effort to streamline, 

simplify and clarify the recent revisions 

to the International Traffic in Arms 

Regulations (ITAR) made pursuant to 

the President’s Export Control Reform 

(ECR) initiative, the Department of State 

is amending the ITAR as part of the 

Department of State’s retrospective plan 

under Executive Order 13563 completed 

on August 17, 2011. 

DATES: This rule is effective October 10, 

2014. 

FOR FURTHER INFORMATION CONTACT: Mr. 

C. Edward Peartree, Director, Office of 

Defense Trade Controls Policy, 

Department of State, telephone (202) 

663–2792; email DDTCResponseTeam@

state.gov. ATTN: Regulatory Change, 

Omnibus Clarifications. The Department 

of State’s full retrospective plan can be 

accessed at http://www.state.gov/

documents/organization/181028.pdf. 

SUPPLEMENTARY INFORMATION: 

Changes in this Rule 

The following changes are made to 

the ITAR with this final rule: (1) 

Definitions previously provided in 

§§ 121.3, 121.4, 121.14, and 121.15 are 

removed from these sections and 

incorporated into U.S. Munitions List 

Categories VIII, VII, XX, and VI, 

respectively; (2) USML Category II is 

amended to clarify that grenade 

launchers are controlled in paragraph 

(a) as a result of the revisions previously 

made to USML Category IV pursuant to 

Export Control Reform; (3) USML 

Category IX is amended to enumerate 

military training not directly related to 

a defense article, which is a controlled 

activity pursuant to ITAR § 120.9(a)(3). 

This change is required in order to 

provide exporters a USML category to 

cite for military training when not 

related to a defense article; (4) The note 

to paragraph (b) in the specially 

designed definition is revised to clarify 

that catch-all controls are only those 

that generically control parts, 

components, accessories, and 

attachments for a specified article and 

do not identify a specific specially 

designed part, component, accessory, or 

attachment. This revision is intended to 

help ensure that exporters properly 

apply ITAR § 120.41 when classifying 

their article and clarify that when a 

specific article is described on the 

USML, it is enumerated and is not part 

of a catch-all; (5) The definitions 

previously provided in ITAR § 121.8 are 

removed to new ITAR § 120.45; (6) The 

policy with regard to when forgings, 

castings, and machined bodies are 

controlled as defense articles is removed 

from ITAR § 121.10 and placed in ITAR 

§ 120.6; (7) The threshold for lithiumion batteries controlled in Category 

VIII(h)(13) is increased from greater than 

28 volts of direct current (VDC) nominal 

to greater than 38 VDC nominal, so as 

not to control on the USML such 

batteries in normal commercial aviation 

use; (8) A control for specially designed 

parts, components, accessories, and 

attachments is added to the helmets 

controlled in Category VIII(h)(15); (9) 

The phrase ‘‘electric-generating’’ is 

added to the control describing fuel 

cells in Category VIII(h)(23) to clarify 

that fuel bladders and fuel tanks are not 

within this control; (10) The word 

‘‘enumerated’’ is replaced with the word 

‘‘described’’ in the paragraphs of the 

USML for technical data and defense 

services directly related to the defense 

articles in that Category to clarify that 

the controls on technical data and 

defense services apply even if the 

defense article is described in a catchall; (11) Conforming changes are made 

to citations throughout these sections; 

and (12) Minor reference corrections are 

made to Supplement No. 1 to Part 126, 

including moving the footnote to the 

entire Supplement from the end to the 

opening to better clarify if an item is 

excluded from eligibility in any row, it 

is excluded from that exemption, even 

if also described in another row that 

contains a description that may also 

include that item. 

Regulatory Analysis and Notices 

Administrative Procedure Act 

The Department of State is of the 

opinion that controlling the import and 

export of defense articles and services is 

a foreign affairs function of the United 

States Government and that rules 

implementing this function are exempt 

from 5 U.S.C. 553 and 554. 

Regulatory Flexibility Act 

Since the Department is of the 

opinion that this rule is exempt from the 

provisions of 5 U.S.C. 553, there is no 

requirement for an analysis under the 

Regulatory Flexibility Act. 

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Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 61227 

Unfunded Mandates Reform Act of 1995 

This rulemaking does not involve a 

mandate that will result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any year and it will not significantly 

or uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

For purposes of the Small Business 

Regulatory Enforcement Fairness Act of 

1996, a ‘‘major’’ rule is a rule that the 

Administrator of the OMB Office of 

Information and Regulatory Affairs finds 

has resulted or is likely to result in (1) 

an annual effect on the economy of 

$100,000,000 or more; (2) a major 

increase in costs or prices for 

consumers, individual industries, 

federal, state, or local government 

agencies, or geographic regions; or (3) 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

foreign markets. 

The Department does not believe this 

rulemaking will have an annual effect 

on the economy of $100,000,000 or 

more. Articles that are being removed 

from coverage in the U.S. Munitions List 

categories contained in this rule will 

still require licensing for export, but 

from the Department of Commerce. 

While the licensing regime of the 

Department of Commerce is more 

flexible than that of the Department of 

State, it is not expected that the change 

in jurisdiction of these articles will 

result in an export difference of 

$100,000,000 or more. 

The Department also does not believe 

that this rulemaking will result in a 

major increase in costs or prices for 

consumers, individual industries, 

federal, state, or local government 

agencies, or geographic regions, or have 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

foreign markets. 

Executive Orders 12372 and 13132 

This rulemaking will not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this rulemaking 

does not have sufficient federalism 

implications to require consultations or 

warrant the preparation of a federalism 

summary impact statement. The 

regulations implementing Executive 

Order 12372 regarding 

intergovernmental consultation on 

Federal programs and activities do not 

apply to this rulemaking. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess 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, distributed impacts, and equity). 

These executive orders stress the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rulemaking has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

this rule has been reviewed by the 

Office of Management and Budget 

(OMB). 

Executive Order 12988 

The Department of State has reviewed 

this rulemaking in light of sections 3(a) 

and 3(b)(2) of Executive Order 12988 to 

eliminate ambiguity, minimize 

litigation, establish clear legal 

standards, and reduce burden. 

Executive Order 13175 

The Department of State has 

determined that this rulemaking will 

not have tribal implications, will not 

impose substantial direct compliance 

costs on Indian tribal governments, and 

will not preempt tribal law. 

Accordingly, the requirements of 

Executive Order 13175 do not apply to 

this rulemaking. 

Paperwork Reduction Act 

This rule does not impose or revise 

any reporting or recordkeeping 

requirements subject to the Paperwork 

Reduction Act, 44 U.S.C. Chapter 35. 

List of Subjects 

22 CFR Parts 120 and 121 

Arms and munitions, Classified 

information, Exports. 

22 CFR Part 123 

Arms and munitions, Exports, 

Reporting and recordkeeping 

requirements. 

22 CFR Part 126 

Arms and munitions, Exports. 

22 CFR Part 130 

Arms and munitions, Campaign 

funds, Confidential business 

information, Exports, Reporting and 

recordkeeping requirements. 

Accordingly, the Department of State 

amends 22 CFR chapter I as follows: 

PART 120—PURPOSE AND 

DEFINITIONS 

■ 1. The authority citation for part 120 

continues to read as follows: 

Authority: Secs. 2, 38, and 71, Pub. L. 90– 

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

2797); 22 U.S.C. 2794; 22 U.S.C. 2651a; Pub. 

L. 105–261, 112 Stat. 1920; Pub. L. 111–266; 

Section 1261, Pub. L. 112–239; E.O. 13637, 

78 FR 16129. 

■ 2. Section 120.6 is revised to read as 

follows: 

§ 120.6 Defense article. 

Defense article means any item or 

technical data designated in § 121.1 of 

this subchapter. The policy described in 

§ 120.3 is applicable to designations of 

additional items. This term includes 

technical data recorded or stored in any 

physical form, models, mockups or 

other items that reveal technical data 

directly relating to items designated in 

§ 121.1 of this subchapter. It also 

includes forgings, castings, and other 

unfinished products, such as extrusions 

and machined bodies, that have reached 

a stage in manufacturing where they are 

clearly identifiable by mechanical 

properties, material composition, 

geometry, or function as defense 

articles. It does not include basic 

marketing information on function or 

purpose or general system descriptions. 

■ 3. Section 120.10 is amended by 

revising paragraph (a)(4) to read as 

follows: 

§ 120.10 Technical data. 

(a) * * * 

(4) Software (see § 120.45(f)) directly 

related to defense articles. 

* * * * * 

■ 4. Section 120.41 is amended by 

revising paragraph (a) introductory text, 

paragraph (a)(2), and the note to 

paragraph (b), to read as follows: 

§ 120.41 Specially designed. 

(a) Except for commodities or 

software described in paragraph (b) of 

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61228 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 

this section, a commodity or software 

(see § 120.45(f)) is specially designed if 

it: 

* * * * * 

(2) Is a part (see § 120.45 (d)), 

component (see § 120.45(b)), accessory 

(see § 120.45(c)), attachment (see 

§ 120.45(c)), or software for use in or 

with a defense article. 

* * * * * 

Note to paragraph (b): The term 

‘‘enumerated’’ refers to any article on 

the U.S. Munitions List or the 

Commerce Control List and not in a 

‘‘catch-all’’ control. A ‘‘catch-all’’ 

control is one that does not refer to 

specific types of parts, components, 

accessories, or attachments, but rather 

controls unspecified parts, components, 

accessories, or attachments only if they 

were specially designed for an 

enumerated item. 

* * * * * 

■ 5. Section 120.45 is added to read as 

follows: 

§ 120.45 End-items, components, 

accessories, attachments, parts, firmware, 

software, systems, and equipment. 

(a) An end-item is a system, 

equipment, or an assembled article 

ready for its intended use. Only 

ammunition or fuel or other energy 

source is required to place it in an 

operating state. 

(b) A component is an item that is 

useful only when used in conjunction 

with an end-item. A major component 

includes any assembled element that 

forms a portion of an end-item without 

which the end-item is inoperable. A 

minor component includes any 

assembled element of a major 

component. 

(c) Accessories and attachments are 

associated articles for any component, 

equipment, system, or end-item, and 

which are not necessary for its 

operation, but which enhance its 

usefulness or effectiveness. 

(d) A part is any single unassembled 

element of a major or a minor 

component, accessory, or attachment 

which is not normally subject to 

disassembly without the destruction or 

the impairment of designed use. 

(e) Firmware and any related unique 

support tools (such as computers, 

linkers, editors, test case generators, 

diagnostic checkers, library of functions, 

and system test diagnostics) directly 

related to equipment or systems covered 

under any category of the U.S. 

Munitions List are considered as part of 

the end-item or component. Firmware 

includes but is not limited to circuits 

into which software has been 

programmed. 

(f) Software includes but is not 

limited to the system functional design, 

logic flow, algorithms, application 

programs, operating systems, and 

support software for design, 

implementation, test, operation, 

diagnosis and repair. A person who 

intends to export only software should, 

unless it is specifically enumerated in 

§ 121.1 of this subchapter (e.g., USML 

Category XIII(b)), apply for a technical 

data license pursuant to part 125 of this 

subchapter. 

(g) A system is a combination of parts, 

components, accessories, attachments, 

firmware, software, equipment, or enditems that operate together to perform a 

function. 

Note to paragraph (g): The industrial 

standards established by INCOSE and 

NASA provide examples for when 

commodities and software operate 

together to perform a function as a 

system. References to these standards 

are included in this note to provide 

examples for when commodities or 

software operate together to perform a 

function as a system. See the INCOSE 

standards for what constitutes a system 

at: http://g2sebok.incose.org/app/mss/

asset.cfm?ID=INCOSE%20G2SEBOK

%202.00&ST=F, and in INCOSE SE 

Handbook v3.1 2007; ISO/IEC 

15288:2008. See the NASA standards for 

examples of what constitutes a system 

in NASA SE Handbook SP–2007–6105 

Rev 1. 

(h) Equipment is a combination of 

parts, components, accessories, 

attachments, firmware, or software that 

operate together to perform a function 

of, as, or for an end-item or system. 

Equipment may be a subset of an enditem based on the characteristics of the 

equipment. Equipment that meets the 

definition of an end-item is an end-item. 

Equipment that does not meet the 

definition of an end-item is a 

component, accessory, attachment, 

firmware, or software. 

PART 121—THE UNITED STATES 

MUNITIONS LIST 

■ 6. The authority citation for part 121 

continues to read as follows: 

Authority: Secs. 2, 38, and 71, Pub. L. 90– 

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

2797); 22 U.S.C. 2651a; Pub. L. 105–261, 112 

Stat. 1920; Section 1261, Pub. L. 112–239; 

E.O. 13637, 78 FR 16129. 

■ 7. Section 121.1 is amended by: 

■ a. Revising the section heading; 

■ b. Revising the final sentence of 

paragraph (b)(2); 

■ c. Removing the word ‘‘enumerated’’ 

and adding in its place the word 

‘‘described’’ in two places in paragraph 

(b)(2), in two places in paragraph (i) of 

Category I, in two places in paragraph 

(k) of Category II, in two places in 

paragraph (e) of Category III, in one 

place in paragraph (i) of Category IV, in 

one place in Note 1 to paragraph (i) of 

Category VI, in one place in Note to 

paragraph (h)(1) of Category VIII, in one 

place in paragraph (i) of Category VIII, 

in one place in paragraph (e) of Category 

IX, in one place in paragraph (e) of 

Category X, in two places in paragraph 

(d) of Category XI, in two places in 

paragraph (f) of Category XII, in two 

places in paragraph (l) of Category XIII, 

in two places in paragraph (m) of 

Category XIV, in two places in 

paragraph (f) of Category XV, in one 

place in paragraph (e) of Category XVI, 

in two places in paragraph (f) of 

Category XVIII, in one place in 

paragraph (g) of Category XIX, in one 

place in paragraph (d) of Category XX; 

■ d. Revising paragraph (a) of Category 

II; 

■ e. Removing the word ‘‘numerated’’ in 

adding in its place the word 

‘‘described’’ in paragraph (j) of Category 

V; 

■ f. Revising paragraphs (a) and (b), and 

adding the note to paragraph (b)(4), and 

the note to paragraphs (a) and (b) in 

Category VI; 

■ g. Revising paragraphs (a) 

introductory text, (b), (c), and (e), and 

adding the note to paragraph (c), and 

note 1, note 2, and note 3 to Category 

VII in Category VII; 

■ h. Revising paragraphs (a) 

introductory text, (a)(9), (a)(11), (a)(12), 

(a)(13), adding paragraphs (a)(14), 

(a)(15), and (a)(16), revising paragraphs 

(h)(3), (h)(6), (h)(13), (h)(15), and (h)(23), 

adding note 1 and note 2 to paragraph 

(a)(11), and note 1 to paragraph (a), and 

redesignating the note to paragraph (a) 

as note 2 to paragraph (a) in Category 

VIII; 

■ i. Revising the title of Category IX, 

removing the note to paragraph (e) of 

Category IX, and revising paragraph (e) 

of Category IX; 

■ j. Adding note to paragraph (f)(1) in 

Category XIX; and 

■ k. Revising paragraphs (a) 

introductory text, (a)(1), and (a)(4), 

redesignating paragraphs (a)(6), (a)(7), 

and notes 1 through 3 of paragraph 

(a)(7) as paragraphs (a)(7), (a)(8), and 

notes 1 through 3 of paragraph (a)(8), 

respectively, adding a new paragraph 

(a)(6) and revising paragraph (a)(7) in 

Category XX. 

The revisions and additions read as 

follows: 

§ 121.1 The United States Munitions List. 

* * * * * 

(b) * * * 

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Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 61229 

(2) * * * Most U.S. Munitions List 

categories contain an entry on technical 

data (see § 120.10 of this subchapter) 

and defense services (see § 120.9 of this 

subchapter) related to the defense 

articles described in that U.S. Munitions 

List category. 

* * * * * 

Category II—Guns and Armament 

*(a) Guns over caliber .50 (i.e., 12.7 

mm), whether towed, airborne, selfpropelled, or fixed, including but not 

limited to, howitzers, mortars, cannons, 

recoilless rifles, and grenade launchers. 

* * * * * 

Category VI—Surface Vessels of War 

and Special Naval Equipment 

*(a) Warships and other combatant 

vessels (i.e., battleships, aircraft carriers, 

destroyers, frigates, cruisers, corvettes, 

littoral combat ships, mine sweepers, 

mine hunters, mine countermeasure 

ships, dock landing ships, amphibious 

assault ships), Coast Guard Cutters (with 

or equivalent to those with U.S. 

designations WHEC, WMEC, WMSL, or 

WPB for the purpose of this subchapter), 

or foreign-origin vessels specially 

designed to provide functions 

equivalent to those of the vessels listed 

above; 

(b) Other vessels not controlled in 

paragraph (a) of this category, as 

follows: 

(1) High-speed air cushion vessels for 

transporting cargo and personnel, shipto-shore and across a beach, with a 

payload over 25 tons; 

(2) Surface vessels integrated with 

nuclear propulsion plants or specially 

designed to support naval nuclear 

propulsion plants; 

(3) Vessels armed or specially 

designed to be used as a platform to 

deliver munitions or otherwise destroy 

or incapacitate targets (e.g., firing lasers, 

launching torpedoes, rockets, or 

missiles, or firing munitions greater 

than .50 caliber); or 

(4) Vessels incorporating any mission 

systems controlled under this 

subchapter. 

Note to paragraph (b)(4): ‘‘Mission 

systems’’ are defined as ‘‘systems’’ (see 

§ 120.45(g) of this subchapter) that are 

defense articles that perform specific 

military functions such as by providing 

military communication, electronic 

warfare, target designation, surveillance, 

target detection, or sensor capabilities. 

Note to paragraphs (a) and (b): 

Vessels specially designed for military 

use that are not identified in paragraph 

(a) or (b) of this category are subject to 

the EAR under ECCN 8A609, including 

any demilitarized vessels, regardless of 

origin or designation, manufactured 

prior to 1950 and unmodified since 

1949. Vessels with modifications made 

to incorporate safety features required 

by law, are cosmetic (e.g., different 

paint), or that add parts or components 

otherwise available prior to 1950 are 

considered ‘‘unmodified’’ for the 

purposes of this paragraph. 

* * * * * 

Category VII—Ground Vehicles 

*(a) Armored combat ground vehicles 

as follows: 

* * * * * 

*(b) Ground vehicles (not enumerated 

in paragraph (a) of this category) and 

trailers that are armed or are specially 

designed to be used as a firing or launch 

platform to deliver munitions or 

otherwise destroy or incapacitate targets 

(e.g., firing lasers, launching rockets, 

firing missiles, firing mortars, firing 

artillery rounds, or firing other 

ammunition greater than .50 caliber) 

(MT if specially designed for rockets, 

space launch vehicles, missiles, drones, 

or unmanned aerial vehicles capable of 

delivering a payload of at least 500 kg 

to a range of at least 300 km). 

(c) Ground vehicles and trailers 

equipped with any mission systems 

controlled under this subchapter (MT if 

specially designed for rockets, space 

launch vehicles, missiles, drones, or 

unmanned aerial vehicles capable of 

delivering a payload of at least 500 kg 

to a range of at least 300 km). 

Note to paragraph (c): ‘‘Mission 

systems’’ are defined as ‘‘systems’’ (see 

§ 120.45(g) of this subchapter) that are 

defense articles that perform specific 

military functions, such as by providing 

military communication, target 

designation, surveillance, target 

detection, or sensor capabilities. 

* * * * * 

*(e) Armored support vehicles 

capable of off-road or amphibious use 

specially designed to transport or 

deploy personnel or materiel, or to 

move with other vehicles over land in 

close support of combat vehicles or 

troops (e.g., personnel carriers, resupply 

vehicles, combat engineer vehicles, 

recovery vehicles, reconnaissance 

vehicles, bridge launching vehicles, 

ambulances, and command and control 

vehicles). 

Note 1 to Category VII: Ground 

vehicles specially designed for military 

applications that are not identified in 

this category are subject to the EAR 

under ECCN 0A606, including any 

unarmed ground vehicles, regardless of 

origin or designation, manufactured 

prior to 1956 and unmodified since 

1955. Ground vehicles with 

modifications made to incorporate 

safety features required by law, are 

cosmetic (e.g., different paint, 

repositioning of bolt holes), or that add 

parts or components otherwise available 

prior to 1956 are considered 

‘‘unmodified’’ for the purposes of this 

paragraph. ECCN 0A606 also includes 

unarmed vehicles derived from 

otherwise EAR99 civilian vehicles that 

have been modified or otherwise fitted 

with materials to provide ballistic 

protection, including protection to level 

III (National Institute of Justice Standard 

0108.01, September 1985) or better and 

that do not have reactive or 

electromagnetic armor. 

Note 2 to Category VII: Armored 

ground vehicles are (i) ground vehicles 

that have integrated, fully armored hulls 

or cabs, or (ii) ground vehicles on which 

add-on armor has been installed to 

provide ballistic protection to level III 

(National Institute of Justice Standard 

0108.01, September 1985) or better. 

Armored support vehicles do not 

include those that are merely capable of 

being equipped with add-on armor. 

Note 3 to Category VII: Ground 

vehicles include any vehicle meeting 

the definitions or control parameters 

regardless of the surface (e.g., highway, 

off-road, rail) upon which the vehicle is 

designed to operate. 

* * * * * 

Category VIII—Aircraft and Related 

Articles 

(a) Aircraft, as follows: 

* * * * * 

(9) Air refueling aircraft; 

* * * * * 

(11) Aircraft incorporating any 

mission system controlled under this 

subchapter; 

Note 1 to paragraph (a)(11): ‘‘Mission 

systems’’ are defined as ‘‘systems’’ (see 

§ 120.45(g) of this subchapter) that are 

defense articles that perform specific 

military functions such as by providing 

military communication, electronic 

warfare, target designation, surveillance, 

target detection, or sensor capabilities. 

Note 2 to paragraph (a)(11): This does 

not include tethered aerostats. Mission 

systems incorporated on otherwise EARcontrolled aerostats are controlled as the 

mission systems themselves just as if 

they were mounted, for example, on a 

tower or a pole. 

(12) Aircraft capable of being refueled 

in flight including hover-in-flight 

refueling (HIFR); 

*(13) Optionally Piloted Vehicles 

(OPV) (i.e. aircraft specially designed to 

operate with and without a pilot 

physically located in the aircraft) (MT if 

the OPV has a range equal to or greater 

than 300km); 

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61230 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 

(14) Aircraft with a roll-on/roll-off 

ramp, capable of airlifting payloads over 

35,000 lbs. to ranges over 2,000 nm 

without being refueled in-flight, and 

landing onto short or unimproved 

airfields; 

*(15) Aircraft not enumerated in 

paragraphs (a)(1) through (a)(14) as 

follows: 

(i) U.S.-origin aircraft that bear an 

original military designation of A, B, E, 

F, K, M, P, R, or S; or 

(ii) Foreign-origin aircraft specially 

designed to provide functions 

equivalent to those of the aircraft listed 

in paragraph (a)(15)(i) of this category; 

or 

(16) are armed or are specially 

designed to be used as a platform to 

deliver munitions or otherwise destroy 

targets (e.g., firing lasers, launching 

rockets, firing missiles, dropping bombs, 

or strafing); 

Note 1 to paragraph (a): Aircraft 

specially designed for military 

applications that are not identified in 

paragraph (a) of this section are subject 

to the EAR and classified as ECCN 

9A610, including any unarmed military 

aircraft, regardless of origin or 

designation, manufactured prior to 1956 

and unmodified since manufacture. 

Aircraft with modifications made to 

incorporate safety of flight features or 

other FAA or NTSB modifications such 

as transponders and air data recorders 

are considered ‘‘unmodified’’ for the 

purposes of this paragraph. 

* * * * * 

(h) * * * 

(3) Tail boom folding systems, 

stabilator folding systems or automatic 

rotor blade folding systems, and 

specially designed parts and 

components therefor; 

* * * * * 

(6) Bomb racks, missile launchers, 

missile rails, weapon pylons, pylon-tolauncher adapters, unmanned aerial 

vehicle (UAV) airborne launching 

systems, external stores support systems 

for ordnance or weapons, and specially 

designed parts and components therefor 

(MT if the bomb rack, missile launcher, 

missile rail, weapon pylon, pylon-tolauncher adapter, UAV airborne 

launching system, or external stores 

support system is for a UAV, drone, or 

missile that has a ‘‘range’’ equal to or 

greater than 300 km); 

* * * * * 

(13) Aircraft Lithium-ion batteries that 

provide greater than 38VDC nominal; 

* * * * * 

(15) Integrated helmets incorporating 

optical sights or slewing devices, which 

include the ability to aim, launch, track, 

or manage munitions (e.g., Helmet 

Mounted Cueing Systems, Joint Helmet 

Mounted Cueing Systems (JHMCS), 

Helmet Mounted Displays, Display and 

Sight Helmets (DASH)), and specially 

designed parts, components, 

accessories, and attachments therefor; 

* * * * * 

(23) Electricity-generating fuel cells 

specially designed for aircraft controlled 

in this category or controlled in ECCN 

9A610; 

* * * * * 

Category IX—Military Training 

Equipment and Training 

* * * * * 

(e) Technical data (see § 120.10 of this 

subchapter) and defense services (see 

§ 120.9 of this subchapter): 

(1) Directly related to the defense 

articles enumerated in paragraphs (a) 

and (b) of this category; 

(2) Directly related to the software and 

associated databases enumerated in 

paragraph (b)(4) of this category even if 

no defense articles are used or 

transferred; or 

(3) Military training (see, § 120.9(a)(3) 

of this subchapter) not directly related 

to defense articles or technical data 

enumerated in this subchapter. 

* * * * * 

Category XIX—Gas Turbine Engines 

and Associated Equipment 

* * * * * 

(f) * * * 

(1) * * * 

Note to paragraph (f)(1): Specially 

designed (see § 120.41(b)(3)(ii) of this 

subchapter) does not control parts, 

components, accessories, and 

attachments that are common to engines 

enumerated in paragraph (a) through (d) 

of this category but not identified in 

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

paragraph (f)(1). For example, a part 

common to only the F110 and F136 is 

not specially designed for purposes of 

the ITAR. A part common to only the 

F119 and F135—two engine models 

identified in paragraph (f)(1)—is 

specially designed. 

* * * * * 

Category XX—Submersible Vessels and 

Related Articles 

(a) Submersible and semi-submersible 

vessels that are: 

*(1) Submarines specially designed 

for military use; 

* * * * * 

(4) Armed or are specially designed to 

be used as a platform to deliver 

munitions or otherwise destroy or 

incapacitate targets (e.g., firing 

torpedoes, launching rockets, firing 

missiles, deploying mines, deploying 

countermeasures) or deploy military 

payloads; 

* * * * * 

(6) Integrated with nuclear propulsion 

systems; 

(7) Equipped with any mission 

systems controlled under this 

subchapter; or 

Note to paragraph (a)(7): ‘‘Mission 

system’’ is defined as a ‘‘system’’ (see 

§ 120.45(g) of this subchapter) that are 

defense articles that perform specific 

military functions such as by providing 

military communication, electronic 

warfare, target designation, surveillance, 

target detection, or sensor capabilities. 

* * * * * 

■ 8. Sections 121.2, 121.3, 121.4, 121.8, 

121.10, 121.14, and 121.15 are removed 

and reserved. 

PART 123—LICENSES FOR THE 

EXPORT AND TEMPORARY IMPORT 

OF DEFENSE ARTICLES 

■ 9. The authority citation for part 123 

continues to read as follows: 

Authority: Secs. 2, 38, and 71, Pub. L. 90– 

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

2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 

U.S.C. 2776; Pub. L. 105–261, 112 Stat. 1920; 

Sec. 1205(a), Pub. L. 107–228; Section 1261, 

Pub. L. 112–239; E.O. 13637, 78 FR 16129. 

■ 10. Section 123.1 is amended by 

removing the word ‘‘enumerated’’ and 

adding in its place the word 

‘‘described’’ in one place in paragraph 

(b)(1). 

■ 11. Section 123.16 is amended by 

revising paragraph (b)(4) to read as 

follows: 

§ 123.16 Exemptions of general 

applicability. 

* * * * * 

(b) * * * 

(4) Port Directors of U.S. Customs and 

Border Protection shall permit the 

export without a license, of unclassified 

models or mock-ups of defense articles, 

provided that such models or mock-ups 

are inoperable and do not reveal any 

technical data in excess of that which is 

exempted from the licensing 

requirements of § 125.4(b) of this 

subchapter and do not contain 

components (see § 120.45(b) of this 

subchapter) covered by the U.S. 

Munitions List (see § 121.1 of this 

subchapter). Some models or mockups 

built to scale or constructed of original 

materials can reveal technical data. U.S. 

persons who avail themselves of this 

exemption must provide a written 

certification to the Port Director of U.S. 

Customs and Border Protection that 

these conditions are met. This 

exemption does not imply that the 

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Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 61231 

Directorate of Defense Trade Controls 

will approve the export of any defense 

articles for which models or mocks-ups 

have been exported pursuant to this 

exemption. 

* * * * * 

PART 126—GENERAL POLICIES AND 

PROVISIONS 

■ 12. The authority citation for part 126 

continues to read as follows: 

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

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

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

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

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

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

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

E.O. 13637, 78 FR 16129. 

§ 126.1 [Amended] 

■ 13. Section 126.1 is amended by 

removing the word ‘‘enumerated’’ and 

adding in its place the word 

‘‘described’’ in one place in paragraph 

(c). 

■ 14. Supplement No. 1 to part 126 is 

revised to read as follows: 

Supplement No. 1 to Part 126 

SUPPLEMENT NO. 1* 

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

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

USML 

Category Exclusion (CA) § 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

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

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

I–XXI ........ U.S. origin defense articles and services used for marketing purposes and not previously licensed 

for export in accordance with this subchapter.

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

I–XXI ........ Defense services for or technical data related to defense articles identified in this supplement as 

excluded from the Canadian exemption.

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

I–XXI ........ Any transaction involving the export of defense articles and services for which congressional notification is required in accordance with § 123.15 and § 124.11 of this subchapter.X .............. ..............

I–XXI ........ U.S. origin defense articles and services specific to developmental systems that have not obtained written Milestone B approval from the U.S. Department of Defense milestone approval 

authority, unless such export is pursuant to a written solicitation or contract issued or awarded 

by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or 

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

supplement.

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

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

I–XXI ........ Defense articles and services specific to the existence or method of compliance with anti-tamper 

measures, where such measures are readily identifiable, made at originating Government direction.

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

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

part of the spectrum. See Note 2.

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

I–XXI ........ Defense articles and services specific to sensor fusion beyond that required for display or identification correlation. See Note 3............... X X 

I–XXI ........ Defense articles and services specific to the automatic target acquisition or recognition and cueing of multiple autonomous unmanned systems............... X X 

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

designed for military use and components therefor, specifically designed for military use. See 

also § 123.20 of this subchapter.

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

I–XXI ........ Libraries (parametric technical databases) specially designed for military use with equipment controlled on the USML. See Note 13............... .............. X 

I–XXI ........ Defense services or technical data specific to applied research as defined in § 125.4(c)(3) of this 

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

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

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

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

I–XXI ........ Defense services other than those required to prepare a quote or bid proposal in response to a 

written request from a department or agency of the United States Federal Government or from 

a Canadian Federal, Provincial, or Territorial Government; or defense services other than those 

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

Federal, Provincial, or Territorial Government Program. See Note 14.

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

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

II(k) ........... Software source code related to USML Category II(c), II(d), or II(i). See Note 4 .............................. .............. X X 

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

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

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

III(e) ......... Manufacturing know-how related to USML Category III(d)(1) or III(d)(2) and their specially designed components. See Note 5.X X X 

III(e) ......... Software source code related to USML Category III(d)(1) or III(d)(2). See Note 4 ........................... .............. X X 

IV ............. Defense articles and services specific to man-portable air defense systems (MANPADS). See 

Note 6.

X X X 

IV ............. Defense articles and services specific to rockets, designed or modified for non-military applications that do not have a range of 300 km (i.e., not controlled on the MTCR Annex)............... .............. X 

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

IV ............. Defense articles and services specific to anti-personnel landmines. See Note 15 ............................ X X X

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61232 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 

SUPPLEMENT NO. 1*—Continued 

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

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

USML 

Category Exclusion (CA) § 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

IV ............. Defense articles and services specific to cluster munitions ............................................................... X X X 

IV(i) .......... Software source code related to USML Category IV(a), IV(b), IV(c), or IV(g). See Note 4 .............. .............. X X 

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

designed components. See Note 5.

X X X 

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

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

b. Explosives controlled in USML Category V(a)(38); .................................................................

c. Iron powder (CAS 7439–89–6) with particle size of 3 micrometers or less produced by reduction of iron oxide with hydrogen;.

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

and other MAPO derivatives;.

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

f. Trinitrophenylmethylnitramine (tetryl) (CAS 479–45–8) ............................................................

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

V(a)(13) .... ANF or ANAzF as described in USML Category V(a)(13)(iii) and (iv) ............................................... .............. .............. X 

V(a)(23) .... Difluoraminated derivative of RDX as described in USML Category V(a)(23)(iii) .............................. .............. .............. X 

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

radiated energy in any part of the IR spectrum.

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

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

V(i) ........... Developmental explosives, propellants, pyrotechnics, fuels, oxidizers, binders, additives, or precursors therefor, funded by the Department of Defense via contract or other funding authorization in accordance with notes 1 to 3 for USML Category V(i). This exclusion does not apply if 

such export is pursuant to a written solicitation or contract issued or awarded by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of § 126.16 or 

§ 126.17 of this subchapter and is consistent with other exclusions of this supplement.

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

VI ............. Defense articles and services specific to cryogenic equipment, and specially designed components or accessories therefor, specially designed or configured to be installed in a vehicle for 

military ground, marine, airborne or space applications, capable of operating while in motion 

and of producing or maintaining temperatures below 103 K (¥170°C).

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

VI ............. Defense articles and services specific to superconductive electrical equipment (rotating machinery 

and transformers) specially designed or configured to be installed in a vehicle for military 

ground, marine, airborne, or space applications and capable of operating while in motion. This, 

however, does not include direct current hybrid homopolar generators which have single-pole 

normal metal armatures that rotate in a magnetic field produced by superconducting windings, 

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

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

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

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

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

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

VII ............ Defense articles and services specific to cryogenic equipment, and specially designed components or accessories therefor, specially designed or configured to be installed in a vehicle for 

military ground, marine, airborne or space applications, capable of operating while in motion 

and of producing or maintaining temperatures below 103 K (¥170°C).

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

VII ............ Defense articles and services specific to superconductive electrical equipment (rotating machinery 

and transformers) specially designed or configured to be installed in a vehicle for military 

ground, marine, airborne, or space applications and capable of operating while in motion. This, 

however, does not include direct current hybrid homopolar generators that have single-pole normal metal armatures which rotate in a magnetic field produced by superconducting windings, 

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

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

VIII ........... Defense articles and services specific to cryogenic equipment, and specially designed components and accessories therefor, specially designed or configured to be installed in a vehicle for 

military ground, marine, airborne or space applications, capable of operating while in motion 

and of producing or maintaining temperatures below 103 K (¥170°C).

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

VIII ........... Defense articles and services specific to superconductive electrical equipment (rotating machinery 

and transformers) specially designed or configured to be installed in a vehicle for military 

ground, marine, airborne, or space applications and capable of operating while in motion. This, 

however, does not include direct current hybrid homopolar generators which have single-pole 

normal metal armatures that rotate in a magnetic field produced by superconducting windings, 

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

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

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

VIII(f) ........ Developmental aircraft parts, components, accessories, and attachments identified in USML Category VIII(f).X .............. ..............

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

or components therefor. See Note 5.

X X X 

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

IX ............. Training or simulation equipment for Man Portable Air Defense Systems (MANPADS). See Note 6 .............. X X 

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

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

modified for modeling or simulating military operational scenarios.

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

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Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 61233 

SUPPLEMENT NO. 1*—Continued 

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

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

USML 

Category Exclusion (CA) § 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

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

components therefor. See Note 5.

X X X 

XI(a) ......... Defense articles and services specific to countermeasures and counter- countermeasures See 

Note 9.

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

XI(a) ......... High Frequency and Phased Array Microwave Radar systems, with capabilities such as search, 

acquisition, tracking, moving target indication, and imaging radar systems. See Note 16.

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

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

XI(b), 

XI(c), 

XI(d).

Defense articles and services specific to USML Category XI (b) (e.g., communications security 

(COMSEC) and TEMPEST).

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

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

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

components therefor. See Note 5.

X X X 

XII ............ Defense articles and services specific to countermeasures and counter- countermeasures. See 

Note 9.

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

XII ............ Defense articles and services specific to USML Category XII(c) articles, except any 1st- and 2ndgeneration image intensification tubes and 1st- and 2nd-generation image intensification night 

sighting equipment. End-items in USML Category XII(c) and related technical data limited to 

basic operations, maintenance, and training information as authorized under the exemption in 

§ 125.4(b)(5) of this subchapter may be exported directly to a Canadian Government entity (i.e., 

federal, provincial, territorial, or municipal) consistent with § 126.5, other exclusions, and the 

provisions of this subchapter.

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

XII ............ Technical data or defense services for night vision equipment beyond basic operations, maintenance, and training data. However, the AS and UK Treaty exemptions apply when such export 

is pursuant to a written solicitation or contract issued or awarded by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of § 126.16 or § 126.17 of 

this subchapter and is consistent with other exclusions of this supplement.

X X X 

XII(f) ......... Manufacturing know-how related to USML Category XII(d) and specially designed components 

therefor. See Note 5.

X X X 

XII(f) ......... Software source code related to USML Category XII(a), XII(b), XII(c), or XII(d). See Note 4 .......... .............. X X 

XIII(b) ....... Defense articles and services specific to USML Category XIII(b) (Military Information Security Assurance Systems, cryptographic devices, software, and components)............... X X 

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

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

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

XIII(e) ....... Defense articles and services specific to armored plate manufactured to comply with a military 

standard or specification or suitable for military use. See Note 11.

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

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

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

XIII(j) ........ Defense articles and services related to hardware associated with the measurement or modification of system signatures for detection of defense articles as described in Note 2............... X X 

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

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

agents, and associated equipment.

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

XIV(a), 

XIV(b), 

XIV(d), 

XIV(e), 

XIV(f).

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

derived substances in USML Category XIV(b), and equipment listed in USML Category XIV(f) 

for dissemination of the chemical agents and biological agents listed in USML Category XIV(a), 

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

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

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

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

X X X 

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

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

this entry.

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

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

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

Government of Canada exported directly or indirectly through a Canadian-registered person.

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

XV(e) ........ Anti-jam systems with the ability to respond to incoming interference by adaptively reducing antenna gain (nulling) in the direction of the interference.X .............. ..............

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

a. Aperture (overall dimension of the radiating portions of the antenna) greater than 30 feet; ..

b. All sidelobes less than or equal to -35 dB relative to the peak of the main beam; or ...........

c. Designed, modified, or configured to provide coverage area on the surface of the earth 

less than 200 nautical miles in diameter, where ‘‘coverage area’’ is defined as that area on 

the surface of the earth that is illuminated by the main beam width of the antenna (which is 

the angular distance between half power points of the beam).

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

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

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61234 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 

SUPPLEMENT NO. 1*—Continued 

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

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

USML 

Category Exclusion (CA) § 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

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

baseband) equipment.

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

XV(e) ........ Propulsion systems which permit acceleration of the satellite on-orbit (i.e., after mission orbit injection) at rates greater than 0.1 g.X .............. ..............

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

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

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

XV(e) ........ All specifically designed or modified systems, components, parts, accessories, attachments, and 

associated equipment for all USML Category XV(a) items, except when specifically designed or 

modified for use in commercial communications satellites.

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

XV(e) ........ Defense articles and services specific to spacecraft and ground control station systems (only for 

telemetry, tracking and control as controlled in USML Category XV(b)), subsystems, components, parts, accessories, attachments, and associated equipment.

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

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

the exemptions for USML Category XV.

X X X 

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

XVII .......... Classified articles, and technical data and defense services relating thereto, not elsewhere enumerated. See Note 1.X X X 

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

XIX(e), 

XIX(f)(1), 

XIX(f)(2), 

XIX(g).

Defense articles and services specific to gas turbine engine hot section components and to Full 

Authority Digital Engine Control Systems (FADEC) or Digital Electronic Engine Controls 

(DEEC). See Note 8.

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

XIX(g) ....... Technical data and defense services for gas turbine engine hot sections. (This does not include 

hardware). See Note 8.

X X X 

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

equipment.

X X X 

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

XX ............ Defense articles specific to cryogenic equipment, and specially designed components or accessories therefor, specially designed or configured to be installed in a vehicle for military ground, 

marine, airborne or space applications, capable of operating while in motion and of producing 

or maintaining temperatures below 103 K (¥170°C).

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

XX ............ Defense articles specific to superconductive electrical equipment (rotating machinery and transformers) specially designed or configured to be installed in a vehicle for military ground, marine, 

airborne, or space applications and capable of operating while in motion. This, however, does 

not include direct current hybrid homopolar generators that have single-pole normal metal armatures which rotate in a magnetic field produced by superconducting windings, provided those 

windings are the only superconducting component in the generator.

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

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

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

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

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

XXI ........... Articles, and technical data and defense services relating thereto, not otherwise enumerated on 

the USML, but placed in this category by the Director, Office of Defense Trade Controls Policy.

X X X 

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

and services controlled in USML Category XVII are not eligible for export under the UK Treaty exemption. U.S. origin classified defense articles and services are not eligible for export under either the UK or AS Treaty exemptions except when being released pursuant to a U.S. Department of Defense written request, directive, or contract that provides for the export of the defense article or service. 

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

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

(a) Signature reduction (radio frequency (RF), infrared (IR), Electro-Optical, visual, ultraviolet (UV), acoustic, magnetic, RF emissions) of defense platforms, including systems, subsystems, components, materials (including dual-purpose materials used for Electromagnetic Interference (EM) reduction), technologies, and signature prediction, test and measurement equipment and software, and material transmissivity/

reflectivity prediction codes and optimization software. 

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

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

Note 3: Defense articles and services related to sensor fusion beyond that required for display or identification correlation is defined as techniques designed to automatically combine information from two or more sensors/sources for the purpose of target identification, tracking, designation, or passing of data in support of surveillance or weapons engagement. Sensor fusion involves sensors such as acoustic, infrared, 

electro optical, frequency, etc. Display or identification correlation refers to the combination of target detections from multiple sources for assignment of common target track designation. 

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

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

issued or awarded by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of § 126.16 or § 126.17 of 

this subchapter and is consistent with other exclusions of this supplement. 

Note 5: Manufacturing know-how, as defined in § 125.4(c)(6) of this subchapter, is not eligible for use of the UK or AS Treaty exemptions, unless such export is pursuant to a written solicitation or contract issued or awarded by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of § 126.16 or § 126.17 of this subchapter and is consistent with other exclusions of this supplement. 

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Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 61235 

SUPPLEMENT NO. 1*—Continued 

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

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

USML 

Category Exclusion (CA) § 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

Note 6: Defense articles and services specific to Man Portable Air Defense Systems (MANPADS) includes missiles that can be used without

modification in other applications. It also includes production and test equipment and components specifically designed or modified for 

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

Note 7: Naval nuclear propulsion plants includes all of USML Category VI(e). Naval nuclear propulsion information consists of technical data 

that concern the design, arrangement, development, manufacture, testing, operation, administration, training, maintenance, and repair of the 

propulsion plants of naval nuclear-powered ships and prototypes, including the associated shipboard and shore-based nuclear support facilities. Examples of defense articles covered by this exclusion include nuclear propulsion plants and nuclear submarine technologies or systems; nuclear powered vessels (see USML Categories VI and XX). 

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

the Treaties. Technical data, other than those data required for routine external maintenance and operation, related to the hot section is not 

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

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

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

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

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

(a) IR countermeasures; 

(b) Classified techniques and capabilities; 

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

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

(d) Providing the capability to reprogram; and 

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

Note 10: Examples of defense articles covered by this exclusion include underwater acoustic vector sensors; acoustic reduction; off-board, underwater, active and passive sensing, propeller/propulsor technologies; fixed mobile/floating/powered detection systems which include in-buoy 

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

(manned submarines excluded); automated control algorithms embedded in on-board autonomous platforms which enable (a) group behaviors for target detection and classification, (b) adaptation to the environment or tactical situation for enhancing target detection and classification; ‘‘intelligent autonomy’’ algorithms that define the status, group (greater than 2) behaviors, and responses to detection stimuli by autonomous, underwater vehicles; and low frequency, broad band ‘‘acoustic color,’’ active acoustic ‘‘fingerprint’’ sensing for the purpose of long 

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

(d)). 

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

platforms, refer to the other exclusions in this list, particularly for the category in which the platform is controlled. 

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

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

or above IAW NIJ standard 0108.01 or comparable national standard. This exclusion does not include military helmets, body armor, or other 

protective garments which may be exported IAW the terms of the AS or UK Treaty. 

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

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

eligible for export under the Canadian exemptions. However, this exclusion does not include defense services or technical data specific to 

build-to-print as defined in § 125.4(c)(1) of this subchapter, build/design-to-specification as defined in § 125.4(c)(2) of this subchapter, or basic 

research as defined in § 125.4(c)(3) of this subchapter, or maintenance (i.e., inspection, testing, calibration or repair, including overhaul, reconditioning and one-to-one replacement of any defective items parts or components, but excluding any modification, enhancement, upgrade 

or other form of alteration or improvement that changes the basic performance of the item) of non-excluded defense articles which may be 

exported subject to other exclusions or terms of the Canadian exemptions. 

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

which may enhance the performance of military equipment or systems. 

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

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

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

§ 126.5 of this subchapter; and 

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

(1) Limit delivery of the defense articles being produced directly to an identified manufacturer in the United States registered in accordance with part 122 of this subchapter; a department or agency of the United States Federal Government; a Canadian-registered person authorized in writing to manufacture defense articles by and for the Government of Canada; a Canadian Federal, Provincial, or 

Territorial Government; 

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

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

(4) Require that the Canadian contractor, including subcontractors, destroy or return to the U.S. exporter in the United States all of the 

technical data exported pursuant to the contract or purchase order upon fulfillment of the contract, unless for use by a Canadian or 

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

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61236 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 

SUPPLEMENT NO. 1*—Continued 

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

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

USML 

Category Exclusion (CA) § 126.5 

(AS) 

§ 126.16 

(UK) 

§ 126.17 

(5) Include a clause requiring that all documentation created from U.S. origin technical data contain the statement that, ‘‘This document 

contains technical data, the use of which is restricted by the U.S. Arms Export Control Act. This data has been provided in accordance with, and is subject to, the limitations specified in § 126.5 of the International Traffic in Arms Regulations (ITAR). By accepting 

this data, the consignee agrees to honor the requirements of the ITAR.’’ 

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

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

which the product is to be incorporated; the intended end-use of the product; and the names and addresses of all the Canadian contractors and subcontractors. 

Note 15: This exclusion does not apply to demining equipment in support of the clearance of landmines and unexploded ordnance for humanitarian purposes. 

As used in this exclusion, ‘‘anti-personnel landmine’’ means any mine placed under, on, or near the ground or other surface area, or delivered 

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

proximity, or contact of a person; any device or material which is designed, constructed, or adapted to kill or injure and which functions unexpectedly when a person disturbs or approaches an apparently harmless object or performs an apparently safe act; any manually-emplaced 

munition or device designed to kill, injure, or damage and which is actuated by remote control or automatically after a lapse of time. 

Note 16: The radar systems described are controlled in USML Category XI(a)(3)(i) through (v). As used in this entry, the term ‘‘systems’’ includes equipment, devices, software, assemblies, modules, components, practices, processes, methods, approaches, schema, frameworks, 

and models. 

PART 130—POLITICAL 

CONTRIBUTIONS, FEES AND 

COMMISSIONS 

■ 15. The authority citation for part 130 

continues to read as follows: 

Authority: Sec. 39, Pub. L. 94–329, 90 

Stat. 767 (22 U.S.C. 2779); 22 U.S.C. 2651a; 

E.O. 13637, 78 FR 16129. 

■ 16. Section 130.8 is amended by 

revising the introductory text of 

paragraph (a) to read as follows: 

§ 130.8 Vendor. 

(a) Vendor means any distributor or 

manufacturer who, directly or 

indirectly, furnishes to an applicant or 

supplier defense articles valued in an 

amount of $500,000 or more which are 

end-items or major components as 

defined in § 120.45 of this subchapter. It 

also means any person who, directly or 

indirectly, furnishes to an applicant or 

supplier defense articles or services 

valued in an amount of $500,000 or 

more when such articles or services are 

to be delivered (or incorporated in 

defense articles or defense services to be 

delivered) to or for the use of the armed 

forces of a foreign country or 

international organization under: 

* * * * * 

Rose E. Gottemoeller, 

Under Secretary, Arms Control and 

International Security, Department of State. 

[FR Doc. 2014–23792 Filed 10–9–14; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 34 

RIN 1505–AC49 

Gulf Coast Restoration Trust Fund 

AGENCY: Office of the Fiscal Assistant 

Secretary, Treasury. 

ACTION: Interim final rule. 

SUMMARY: The Department of the 

Treasury is issuing regulations 

concerning the amounts available to 

eligible Louisiana parishes from the 

Gulf Coast Restoration Trust Fund, a 

fund established by the Resources and 

Ecosystem Sustainability, Tourist 

Opportunities, and Revived Economies 

of the Gulf Coast States Act of 2012 

(RESTORE Act). These regulations 

amend an interim final rule for the 

RESTORE Act published on August 15, 

2014. 

DATES: Effective October 14, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Please send questions by email to 

RESTORErule@treasury.gov or contact 

Janet Vail, 202–622–6873. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The RESTORE Act makes funds 

available for the restoration and 

protection of the Gulf Coast region 

through a new trust fund in the 

Treasury of the United States, known as 

the Gulf Coast Restoration Trust Fund. 

The trust fund will contain 80 percent 

of the administrative and civil penalties 

paid after July 6, 2012, under the 

Federal Water Pollution Control Act in 

connection with the Deepwater Horizon 

oil spill. One component of the Act, the 

Direct Component, sets aside 35 percent 

of the penalties paid into the trust fund 

for grants to the State of Alabama, the 

State of Mississippi, the State of Texas, 

the State of Louisiana and 20 Louisiana 

parishes, and 23 Florida counties. The 

Direct Component provides an equal 

amount to each of the five Gulf Coast 

States, and allocates 30 percent of 

Louisiana’s share to the 20 eligible 

parishes. 

On September 6, 2013, Treasury 

proposed a rule to implement the Direct 

Component and four other components 

in the RESTORE Act. Among its 

provisions, the proposed rule identified 

the 20 Louisiana parishes eligible to 

receive funds under the Direct 

Component, but not the share of each 

parish. Treasury requested public 

comments on the data and methodology 

for calculating these shares, and 

received comments from the State of 

Louisiana and one Louisiana parish. 

On July 31, 2014, Treasury proposed 

a rule identifying the share of each 

Louisiana parish under the Direct 

Component, based on a formula in the 

RESTORE Act and data from the United 

States Census Bureau and the United 

States Coast Guard. 79 FR 44325. 

Treasury considered the comments 

submitted previously, and opened a 

new public comment period for 30 days. 

Treasury received two substantive 

comments. 

After considering public comments, 

Treasury now issues the regulations as 

an interim final rule. The rule for 

Louisiana parishes amends the 

RESTORE Act rule published on August 

15, 2014 (79 FR 48039), which covers 

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