[Federal Register Volume 83, Number 5 (Monday, January 8, 2018)]
[Rules and Regulations]
[Pages 709-711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00059]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[170207157-7157-01]
RIN 0694-AH31


Revisions, Clarifications, and Technical Corrections to the 
Export Administration Regulations; Correction

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule; correcting amendments.

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SUMMARY: In this final rule, the Bureau of Industry and Security 
corrects an error in the text of Export Control Classification Numbers 
(ECCNs) 0D606, 0E606, and 8A609.

DATES: This rule is effective January 8, 2018.

FOR FURTHER INFORMATION CONTACT: Ivan Mogensen, Office of Exporter 
Services, Bureau of Industry and Security, by telephone: (202) 482-2440 
or email: <a href="/cdn-cgi/l/email-protection#662f100708482b0901030815030826040f154802090548010910"><span class="__cf_email__" data-cfemail="5b122d3a357516343c3e35283e351b393228753f3438753c342d">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Overview

    On December 27, 2017, BIS published a final rule, Revisions, 
Clarifications, and Technical Corrections to the Export Administration 
Regulations (82 FR 61153) (the December 27 rule), which made 
corrections to certain provisions of the Export Administration 
Regulations (EAR), including the Commerce Control List (part 774 of the 
EAR) (CCL). The corrections were editorial in nature and did not affect 
license requirements. In this final rule, BIS is amending ECCNs 0D606 
and 0E606 by reinstating original text that was erroneously replaced 
with the text for ECCNs 0D614 and 0E614, respectively, in the December 
27 rule. In addition, this rule reinstates paragraph (2) of the Special 
Conditions for STA in ECCN 8A609.

Part 774

    ECCNs 0D606 and 0E606: The December 27 rule amended ECCN 
subparagraphs 0D606.a and 0E606.a to include references to ECCNs 0B606 
and 0C606. During drafting, the License Requirements section and the 
text following the revised subparagraphs for both ECCNs was exchanged 
with the text for ECCNs 0D614 and 0E614, respectively. In order to 
follow the guidelines of the original preamble, this correction to the 
December 27 rule restores the original License Requirements section and 
the text of ECCNs 0D606 and 0E606 following subparagraph .a in both 
ECCNs. In addition, this rule replaces the incorrect reference to 0D606 
with 0E606 in the Special Conditions for STA of ECCN 0E606.
    ECCN 8A609: The December 27 rule amended ECCN 8A609 by revising the 
title reference in these ECCNs to match the current title of Sec.  
740.20(g) and in doing so inadvertently removed paragraph (2) of the 
Special Conditions for STA. This rule restores paragraph (2) of the 
Special Conditions for STA in ECCN 8A609.

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as 
amended, has been in lapse. However, the President, through Executive 
Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as 
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March 
13, 2013), and as extended by the Notice of August 15, 2017, 82 FR 
39005 (August 16, 2017) has continued the EAR in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
BIS continues to carry out the provisions of the Export Administration 
Act, as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222 as amended by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule does not impose any regulatory burden on the 
public and is consistent with the goals of Executive Order 13563. This 
rule has been designated not significant for purposes of Executive 
Order 12866. This rule is not an Executive Order 13771 regulatory 
action because this rule is not significant under Executive Order 
12866.
    2. This final rule does not contain information collections subject 
to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.) (PRA). 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 Office of Management and Budget (OMB) Control Number.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The Department of Commerce finds that there is good cause under 
5 U.S.C. 553(b)(B) to waive the provisions of the Administrative 
Procedure Act otherwise requiring prior notice and the opportunity for 
public comment because they are unnecessary. The revisions made by this 
rule are administrative in nature and do not affect the privileges and 
obligations of the public. Additionally, it is important that the edits 
and clarifications are added as soon as possible to prevent improper 
interpretation of the EAR. The Department also finds that there is good 
cause under 5 U.S.C. 553(b)(A) to waive the provisions of the 
Administrative Procedure Act requiring notice and comment because these 
changes are limited to providing guidance on existing interpretations 
of current EAR provisions. Because these revisions are not substantive 
changes to the EAR, the 30-day delay in effectiveness otherwise 
required by 5 U.S.C. 553(d) is not applicable. No other law requires 
that a notice of proposed rulemaking and opportunity for public comment 
be given for this rule. The analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et. seq.) are not applicable because no 
general notice of proposed rulemaking was required

[[Page 710]]

for this rule by 5 U.S.C. 553, or by any other law. Accordingly, no 
regulatory flexibility analysis is required and none has been prepared.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, part 774 of the Export Administration Regulations (15 
CFR part 774) is amended as follows:

PART 774--[AMENDED]

0
1. The authority citation for 15 CFR part 774 continues to read as 
follows:

    Authority: 50 U.S.C. 4601 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; 42 U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C. 
4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Notice of August 15, 2017, 82 FR 39005 (August 
16, 2017).


0
2. In supplement No. 1 to part 774, Category 0, ECCN 0D606 is revised 
to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *
0D606 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of ground vehicles and 
related commodities controlled by 0A606, 0B606, or 0C606 (see List 
of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry, except 0D606.y  NS Column 1.
RS applies to entire entry, except 0D606.y  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry, except 0D606.y  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions

(See Part 740 for a description of all license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any software in 0D606.

List of Items Controlled

Related Controls: (1) Software directly related to articles 
enumerated or otherwise described in USML Category VII are subject 
to the controls of USML paragraph VII(h). (2) See ECCN 0A919 for 
foreign made ``military commodities'' that incorporate more than a 
de minimis amount of U.S.-origin ``600 series'' controlled content.
Related Definitions: N/A.
Items:

    a. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCNs 0A606 (except for ECCNs 0A606.b or 0A606.y), 0B606, or 
0C606.
    b. through x. [RESERVED]
    y. ``Specific software'' ``specially designed'' for the 
``production,'' ``development,'' operation, or maintenance of 
commodities described in ECCN 0A606.y.


0
3. In supplement No. 1 to part 774, Category 0, ECCN 0E606 is revised 
to read as follows:

0E606 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of ground vehicles and related commodities 
in 0A606, 0B606, 0C606, or software in 0D606 (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry, except 0E606.y  NS Column 1.
RS applies to entire entry, except 0D606.y  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry, except 0D606.y  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions

(See Part 740 for a description of all license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any technology in 0E606.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category VII are subject to the controls of USML 
paragraph VII(h).
Related Definitions: N/A.
Items:

    a. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities enumerated or otherwise 
described in ECCN 0A606 (except for ECCNs 0A606.b or 0A606.y), 
0B606, or 0C606.
    b. through x. [RESERVED]
    y. Specific ``technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul or refurbishing of commodities or software in ECCN 0A606.y 
or 0D606.y.

0
4. In supplement No. 1 to part 774, Category 8, ECCN 8A609 is revised 
to read as follows:

8A609 Surface vessels of war and related commodities (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry, except 8A609.y  NS Column 1.
RS applies to entire entry, except 8A609.y  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry, except 8A609.y  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

LVS: $1500.
GBS: N/A.
CIV: N/A.

Special Conditions for STA

STA: (1) Paragraph (c)(1) of License Exception STA (Sec.  
740.20(c)(1) of the EAR) may not be used for any item in 8A609.a, 
unless determined by BIS to be eligible for License Exception STA in 
accordance with Sec.  740.20(g) (License Exception STA eligibility 
requests for 9x515 and ``600 series'' items). (2) Paragraph (c)(2) 
of License Exception STA (Sec.  740.20(c)(2) of the EAR) may not be 
used for any item in 8A609.

List of Items Controlled

Related Controls: (1) Surface vessels of war and special naval 
equipment, and technical data (including software), and services 
directly related thereto, described in 22 CFR part 121, Category VI, 
Surface Vessels of War and Special Naval Equipment, are subject to 
the jurisdiction of the International Traffic in Arms Regulations. 
(2) See ECCN 0A919 for foreign-made ``military commodities'' that 
incorporate more than a de minimis amount of U.S.- origin ``600 
series'' controlled content. (3) For controls on diesel engines and 
electric motors that are ``subject to the EAR'' for surface vessels 
of war ``subject to the EAR'' or ``subject to the ITAR,'' see ECCN 
8A992.g. For diesel engines and electric motors for surface vessels 
of war ``subject to the ITAR,'' see 22 CFR part 121, Category VI(c) 
for parts, components, accessories, and attachments, ``specially 
designed'' for developmental vessels funded by the Department of 
Defense via contract or other funding authorization. (4) For 
controls on military gas turbine

[[Page 711]]

engines and related items for vessels of war, see ECCN 9A619.
Related Definitions: N/A.
Items:

    a. Surface vessels of war ``specially designed'' for a military 
use and not enumerated or otherwise described in the USML.

    Note 1: 8A609.a includes: (i) Underway replenishment ships; (ii) 
surface vessel and submarine tender and repair ships, except vessels 
that are ``specially designed'' to support naval nuclear propulsion 
plants; (iii) non-submersible submarine rescue ships; (iv) other 
auxiliaries (e.g., AGDS, AGF, AGM, AGOR, AGOS, AH, AP, ARL, AVB, 
AVM, and AVT); (v) amphibious warfare craft, except those that are 
armed; and (vi) unarmored and unarmed coastal, patrol, roadstead, 
and Coast Guard and other patrol craft with mounts or hard points 
for firearms of .50 caliber or less.


    Note 2: For purposes of paragraph .a, surface vessels of war 
includes vessels ``specially designed'' for military use that are 
not identified in paragraph (a) of ITAR Sec.  121.15, including any 
demilitarized vessels, regardless of origin or designation, 
manufactured prior to 1950 and that have not been modified since 
1949. For purposes of this note, the term modified does not include 
incorporation of safety features required by law, cosmetic changes 
(e.g., different paint), or the addition of ``parts'' or 
``components'' available prior to 1950.

    b. Non-magnetic diesel engines with a power output of 50 hp or 
more and either of the following:
    b.1. Non-magnetic content exceeding 25% of total weight; or
    b.2. Non-magnetic parts other than crankcase, block, head, 
pistons, covers, end plates, valve facings, gaskets, and fuel, 
lubrication and other supply lines.
    c. through w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' that are ``specially designed'' for a commodity 
enumerated or otherwise described in ECCN 8A609 (except for 8A609.y) 
or a defense article enumerated or otherwise described in USML 
Category VI and not specified elsewhere on the USML, in 8A609.y or 
3A611.y.

    Note 1: 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 
commodities controlled by ECCN 8A609.x are controlled by ECCN 
8A609.x.


    Note 2: ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' specified in USML subcategory VI(f) are subject to 
the controls of that paragraph. ``Parts,'' ``components,'' 
``accessories,'' and ``attachments'' specified in ECCN 8A609.y are 
subject to the controls of that paragraph.

    y. Specific ``parts,'' ``components,'' ``accessories'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN or for a defense article in USML Category VI 
and not elsewhere specified in the USML, as follows, and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' therefor:
    y.1. Public address (PA) systems;
    y.2. Filters and filter assemblies, hoses, lines, fittings, 
couplings, and brackets for pneumatic, hydraulic, oil and fuel 
systems;
    y.3. Galleys;
    y.4. Lavatories;
    y.5. Magnetic compass, magnetic azimuth detector;
    y.6. Medical facilities;
    y.7. Potable water tanks, filters, valves, hoses, lines, 
fittings, couplings, and brackets;
    y.8. Panel knobs, indicators, switches, buttons, and dials 
whether unfiltered or filtered for use with night vision imaging 
systems;
    y.9. Emergency lighting;
    y.10. Gauges and indicators;
    y.11. Audio selector panels.

    Dated: January 2, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-00059 Filed 1-5-18; 8:45 am]
BILLING CODE-P


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