[Federal Register Volume 60, Number 91 (Thursday, May 11, 1995)]
[Proposed Rules]
[Pages 25268-25477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10994]




[[Page 25267]]

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Part II





Department of Commerce





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Bureau of Export Administration



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15 CFR Part 730, et al.



Simplification of Export Administration Regulations; Proposed Rule

Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / 
Proposed Rules  
[[Page 25268]] 

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 730, 732, 734, 736, 738, 740, 742, 744, 746, 748, 750, 
752, 754, 756, 758, 760, 762, 764, 766, 768, 770, 772, and 774

[Docket No. 950407094-5094-01]
RIN 0694-AA67


Export Administration Regulation; Simplification of Export 
Administration Regulations

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Notice of proposed rulemaking; request for comments.

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SUMMARY: The Bureau of Export Administration (BXA) is proposing a 
comprehensive revision and reorganization of its Export Administration 
Regulations (EAR), the regulatory regime through which BXA imposes 
export and reexport controls on those items and activities within its 
jurisdiction. This proposed rule would clarify the language of the EAR, 
simplify their application, and generally make the export control 
regulatory regime more user-friendly.

DATES: Written comments on this proposed rule must be received on or 
before July 10, 1995.

ADDRESSES: Written comments should be sent to Cecil Hunt, Deputy Chief 
Counsel for Export Administration, United States Department of 
Commerce, Bureau of Export Administration, Fourteenth Street and 
Constitution Avenue, N.W., Room 3839, Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT: Larry E. Christensen, Acting Director, 
Regulatory Policy Division, Bureau of Export Administration, (202) 482-
2440.

SUPPLEMENTARY INFORMATION:

Background

    On September 30, 1993, the Secretary of Commerce submitted to the 
Congress a report of the Trade Promotion Coordinating Committee (TPCC), 
entitled Toward a National Export Strategy. The report included the 
following among its goals:
    Undertake a comprehensive review of the Export Administration 
Regulations to simplify, clarify, and make the regulations more user-
friendly.
    In November 1993, BXA organized a Task Group, drawn from several of 
its offices, to carry out the TPCC recommendation. The Task Group 
launched its review project by publishing an advance notice of proposed 
rulemaking (ANPRM) in the Federal Register on February 10, 1994 (59 FR 
6528). This notice was designed to solicit comments from industry and 
the interested public. The ANPRM asked for suggestions concerning 
improvements BXA could make to the EAR and described several specific 
issues on which BXA was particularly interested in receiving public 
input.
    Over seven months during the development of this proposed 
regulation, BXA shared four discussion packages with Regulations & 
Procedures Technical Advisory Committee (RPTAC), an advisory committee 
consisting of industry representatives. This was to seek the comments 
of a working group of persons intimately familiar with the private 
sector's role in using the EAR. The packages were also made available 
to other interested members of the public, with the last two being made 
available electronically on FedWorld. The four discussion Packages were 
dated August 2, 1994, September 29, 1994, January 12, 1995, and 
February 28, 1995.
    Based on the comments received from the public and from the RPTAC 
and its own assessment of how the EAR could be improved, the Task Force 
determined that the EAR should be entirely reorganized and streamlined. 
The Task Force accomplished this through the development of innovations 
that resulted in the following important features, among others:

    <bullet> No license or other authorization would be required for 
any transaction under BXA jurisdiction unless the regulations 
affirmatively state the requirement. (Current regulations state that 
all exports are prohibited unless an applicable general license has 
been established or a validated license or other authorization has 
been granted by BXA.)
    <bullet> The terms ``general'' license and ``validated'' license 
would be dropped. The term ``license'' would be used to refer only 
to authorization issued by BXA upon application. The proposed 
regulations would convert the many current general licenses into a 
smaller number of ``exceptions'', set forth in the proposed 
regulations, to the obligation to seek a license when the control 
list indicates that the particular item going to the stated country 
generally requires a license.
    <bullet> The chapters of the regulations would be arranged to 
give the exporter and reexporter a logical path to follow.
    <bullet> The affirmative statements of the need to obtain a 
license, currently scattered throughout the regulations, would be 
consolidated into ten general prohibitions. One chapter would 
contain the license review policy for all list-based license 
requirements; another would provide for the requirements and review 
policies of licenses based on the end-use or end-user involved in a 
proposed export or reexport; and the list-based license requirements 
are contained in the Commerce Control List (CCL) indicating the 
reason for control and the Country Chart indicating the country 
scope of each reason for control.
    <bullet> The Country Groups used in the current regulations 
would be revised in favor of Groups which better reflect post-Cold 
War circumstances.
    <bullet> The CCL would be redesigned to state the reasons for 
control more specifically within each Export Control Classification 
Number (ECCN).
    <bullet> The redesigned CCL would be used in tandem with a new 
Country Chart that would indicate whether a license is required for 
any ECCN to any country in the world and the reason or reasons for 
control.

    Set forth below is a detailed part-by-part description of the 
proposed rule and a review of comments received pursuant to the ANPRM, 
along with BXA's responses.

Part-by-Part Analysis

Part 730--General Information

    This Part is designed to provide a convenient introduction and 
orientation for readers of the EAR, particularly those who are not used 
to dealing with such regulations. This Part briefly indicates the types 
of controls contained in the EAR (export and reexport controls and 
antiboycott regulations), identifies the key statutes involved, and 
alerts the reader to the fact that jurisdiction over some exports and 
reexports is exercised by agencies other than BXA.
    Part 730 notes the basic control purposes and the relationship of 
some of the controls to multilateral arrangements. It points out that 
only a small percentage of exports, reexports, and other transactions 
subject to the EAR involve the need to apply to BXA for a license. Many 
items (commodities, technology, and software) listed on the CCL may be 
exported and reexported without a license due to License Exceptions 
that can be used simply by meeting the terms of the EAR.
    Further, this Part 730 notes that this proposed re-write of the EAR 
is designed to enhance the ability of exporters and reexporters to find 
the rules on their own, but also advises on the availability of help. 
It also highlights the benefits to exporters and reexporters from the 
precision, completeness, and objective character of the detailed 
provisions of the EAR.
    Part 730 relates the antiboycott provisions of the EAR to the 
Internal Revenue Code provisions that deny certain tax benefits for 
boycott-related reasons.
    Part 730 closes by cautioning that its brief descriptions are 
solely for convenience and that readers must look to the body of the 
EAR and elsewhere [[Page 25269]] for the actual rules. The regulations 
being replaced do not contain material comparable to Part 730.

Part 732--Scope of the Export Administration Regulations

    The proposed regulation would introduce the term ``subject to the 
EAR'' to define the scope of the regulations. The term would be used in 
the rule to describe those items and activities over which BXA 
exercises regulatory jurisdiction under the EAR. Conversely, items and 
activities that are not subject to the EAR would be outside the 
regulatory jurisdiction of the EAR and not affected by the proposed 
regulations. It should be noted that the term ``subject to the EAR'' is 
not to be confused with licensing or other requirements imposed in 
other parts of the EAR. The fact that an item or activity is subject to 
the EAR does not mean that a license or other requirement automatically 
applies. A license or other requirement would apply only in those cases 
where the EAR impose a licensing or other requirement on such items or 
activities.
    Items previously included on the CCL under ECCNs ending in the 
letter ``G'' were known as basket categories. Under this rule, the 
basket categories would be included within the term ``subject to the 
EAR,'' even though they are not listed on the CCL.
    The proposed rule would make clear that items and activities 
subject to the EAR are not necessarily exempted from the control 
programs of other agencies. Although BXA and other agencies try to 
minimize overlapping jurisdiction, situations might occur in which an 
exporter and a reexporter would have to comply with more than one 
regulatory program. Moreover, items not subject to the EAR may or may 
not be subject to licensing by other agencies.
    Generally, all U.S. origin items, items exported from the United 
States, and certain foreign-made products, as described in Sec. 732.4, 
would be subject to the EAR. However, certain items, such as items that 
are exclusively controlled for export by another department or agency 
of the U.S. Government, would be explicitly excepted from the EAR. 
Further, technology and software that are already publicly available or 
will be made publicly available, as described in Sec. 732.7; arise 
during or result from fundamental research, as described in Sec. 732.8; 
are educational, as described in Sec. 732.9; or are included in certain 
patent applications, as described in Sec. 732.10, would not be subject 
to the EAR.
    Certain foreign-made products would be subject to the EAR. 
Controlled U.S. origin parts, components, materials, or other 
commodities incorporated abroad into foreign-made products, if they 
exceed certain de minimis levels. For the first time, the proposed rule 
includes technology and software in the calculation of de minimis 
values. BXA especially invites substantive comments and suggestions on 
calculating such values for technology and software. BXA is considering 
requirements that such calculations be made in accordance with United 
States accounting standards including the rulings of the Financial 
Accounting Standards Board and that calculations be based solely upon 
cost records maintained in the normal course of business. BXA is also 
considering whether to require a one-time report of such calculations 
in advance of any reliance upon the de minimis exclusion for technology 
and software. BXA also urges exporters to provide substantive comments 
and suggestions on this option. In addition, foreign-made direct 
products of U.S. origin technology or software and any commodity 
produced by any plant or major component of a plant which is a direct 
product of U.S. origin technology or software, would be subject to the 
EAR as provided in the current regulations.
    The proposed regulations make clear that certain activities would 
also be subject to the EAR. The activities subject to the EAR would 
include certain proliferation-related activities by any person, as set 
forth in Part 744. Activities prohibited by any order issued under the 
EAR, including a denial order, would also be subject to the EAR.
    Part 732 would also contain rules governing other exports and 
reexports subject to the EAR. The rule would continue the general 
policy of permitting most shipments to Canada without a license. 
Further, items exported from U.S. foreign trade zones would be subject 
to the EAR, as would items moving intransit through the United States. 
Finally, the proposed regulations would state that neither a license 
nor other authorization would be required for shipments from the United 
States to Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, or any other territory, dependency, or possession of the 
United States.
    BXA would offer assistance to a potential exporter, or other 
interested party, in determining whether an item is subject to the EAR.

Part 734--General Prohibitions

    If an export, reexport, or activity is subject to the EAR, the 
general prohibitions contained in Part 734 and the exceptions set forth 
in Part 740 must be reviewed to determine if a license is necessary. 
However, no license or other authorization would be required for any 
transaction subject to the EAR unless the regulations affirmatively 
state the requirement.
    Part 734 would contain the rules for ascertaining when an export or 
reexport subject to the EAR requires a license. This would involve 
determining whether a transaction subject to the EAR is subject to a 
general prohibition. Specifically, if an export or reexport subject to 
the EAR is also subject to a general prohibition, then a license would 
be required in order to undertake the export or reexport, unless an 
exception to the prohibition applies.
    This part would set forth ten general prohibitions, listed in the 
proposed regulations at Secs. 734.2(b)(1)-(10). The CCL in Part 774 and 
the Country Chart in Part 738 when taken together define the scope of 
General Prohibitions One (Exports and Reexports in the Form Received), 
Two (Parts and Components Reexports), and Three (Foreign Produced 
Direct Product Reexports). General Prohibitions Four through Ten are 
not so limited, these general prohibitions apply to all items subject 
to the EAR unless otherwise specified, and these general prohibitions 
apply to all items subject to the EAR whether or not listed on the CCL.
    BXA especially invites substantive comments concerning the controls 
on foreign produced direct products of U.S. technology and software 
provided at General Prohibition Three. The term ``duties'' is used in 
the proposed regulation to mean responsibilities. One early comment 
suggested that some readers might confuse this with the term ``duties'' 
meaning a tax on the importation of items. BXA invites comments on the 
use of the term.

Part 736--Steps You May Follow in Determining Your Licensing 
Requirements

    Part 736 would provide a logical step-by-step path exporters and 
reexporters may follow in discerning their license requirements and 
prohibitions under the EAR. These steps would explain the relationship 
among the scope of the EAR, the general prohibitions, the License 
Exceptions, and other chapters of the EAR. BXA is considering the 
possibility of merging the text regarding steps into the introductory 
portions of the ``General Prohibitions'' chapter (Part 734). BXA 
invites specific comments on such a reorganization. [[Page 25270]] 

Part 738--Commerce Control List and the Country Chart

    BXA maintains the Commerce Control List (CCL), located in 
Supplement No. 1 to Part 774, which includes listed items subject to 
the EAR. Individual items are identified on the CCL under an Export 
Control Classification Number (ECCN).
    An ECCN contains several items of information that the exporter and 
reexporter must have in order to determine whether a license is 
required by the CCL for a particular item. As revised by the proposed 
rule, the ``License Requirements'' section of each ECCN contains two 
columns entitled ``Controls'' and ``Country Chart''. The ``Controls'' 
column lists all applicable Reasons for Control, in order of 
restrictiveness, and to what extent each applies (e.g., to the entire 
entry or only to certain subparagraphs). Those items requiring licenses 
for a greater number of countries and/or items are listed first. The 
``Country Chart'' column identifies, for each applicable Reason for 
Control, a column name and number. This column information is used in 
the Country Chart to identify the list of countries requiring a 
license.
    The proposed rule also adds a ``License Alternatives'' section to 
each ECCN. The ``License Alternatives'' section identifies ECCN-driven 
alternatives to applying for a license and a brief eligibility 
statement for each. The alternatives consist of ECCN-driven License 
Exceptions (Part 740) and the Special Comprehensive License (Part 752). 
The information in this section is provided to assist in deciding which 
alternative related to a particular item and destination would be 
explored prior to submitting an application for a license to BXA. This 
section would be consulted only AFTER an exporter or reexporter has 
determined that a license is required based on an analysis of the ECCN 
and the Country Chart.
    The proposed rule also introduces the Commerce Country Chart 
(Country Chart). The Country Chart, located in Supplement No. 1 to Part 
738, contains licensing requirements based on the export's destination 
and ``Reason for Control.'' In combination with the CCL, the Country 
Chart allows an exporter and reexporter to refer to one place in the 
EAR and determine whether a license is required for the export or 
reexport of any item on the CCL to any country in the world.

Part 740--License Exceptions

    Part 740 of the proposed rule provides for exceptions from license 
requirements similar to many of the general licenses contained in the 
current regulations. It consolidates exceptions into one chapter; the 
current regulation deals with commodities in one chapter and technology 
and software in another. This Part also organizes the exceptions in 
more transaction-oriented groupings, e.g., all exceptions dealing with 
parts are included in License Exception PTS. License Exceptions 
contained in this Part of the proposed rule permit the export or 
reexport without a license required by the CCL provided the conditions 
for the use of the License Exception are met.
    Eligibility for a License Exception would be based upon the item to 
be exported or reexported, the country of ultimate destination, the 
end-use of the item, and the end-user. If a License Exception is 
available, the exporter or reexporter may proceed with the export or 
reexport without a license. However, the exporter and reexporter would 
be required to meet all the terms and conditions required by the 
License Exception for the export or reexport to be authorized without a 
license. By using a License Exception, the exporter or reexporter would 
be self-certifying that all terms, conditions, and provisions for the 
use of that License Exception have been met. Including the appropriate 
License Exception symbol on the Shippers Export Declaration, e.g., 
``TMP'' for temporary exports, would constitute such a certification.
    Items that are listed on the CCL but do not require a license by 
reason of the Country Chart at Part 738 must be certified by entering 
the symbol ``NLR'' in the appropriate place on the Shippers Export 
Declaration. This constitutes representations of the exporter that the 
listed item does not require a license under General Prohibitions One 
(Exports and Reexports in the Form Received), Two (Parts and Components 
Reexports), and Three (Foreign Produced Direct Product Reexports); that 
General Prohibitions Four through Ten do not apply to the given export, 
reexport, or other activity; and that the item is subject to the EAR.
    BXA solicits comments on the incorporation of proliferation 
controls into License Exceptions. Many General Licenses and Permissive 
Reexports originally focused on national security controls. BXA would 
like public input on the extent to which proliferation concerns have, 
or have not, been addressed by License Exceptions.

Part 742--Control Policy--CCL Based Controls

    This Part contains licensing review policies and certain 
requirements for all items listed on the CCL. It consolidates most of 
current Part 785, and substantial portions of Parts 776 and 778. In 
addition to providing the license policies and certain license 
requirements, it notes any contract sanctity dates that may have been 
established for particular export or reexport control programs and 
describes any multilateral cooperation in particular export or reexport 
control programs.
    The proposed regulation tracks the reasons for control listed in 
the Country Chart by providing the licensing policy for every column on 
the chart. In addition, this Part includes two control policies for 
items included on the CCL, but not reflected in the Country Chart; it 
includes provisions for supercomputers and communications intercepting 
devices.
    This proposed rule, consistent with the National Defense 
Authorization Act (NDAA) for fiscal year 1993 entitled the ``Iran-Iraq 
Arms Non-Proliferation Act of 1992'', would codify the current 
statutory policy of denial for all items that require a license for 
Iran. The reader should note that additional unilateral trade 
restrictions on Iran are currently under review within the 
Administration.
    The reader should also note that controls for Libya are currently 
under review within the Administration.
    This proposed rule would reflect the Secretary of State's 6(j) 
determination of August 12, 1993, that the Government of Sudan has 
repeatedly provided support for acts of international terrorism. This 
rule would also reflect the Acting Secretary of State's determination 
of December 28, 1993, that five categories of multilaterally controlled 
items would be controlled under section 6(j). License applications for 
the following items would be reviewed under the 6(j) procedures:
    All items subject to national security controls, except national 
security controlled digital computers with a Composite Theoretical 
Performance (CTP) of 500 Million Theoretical Operations Per Second 
(MTOPS) or less. Such items will generally be denied if destined to a 
military end-user or for military end-use. Applications for non-
military end-users or end-uses will be considered on a case-by-case 
basis;
    All items subject to chemical and biological weapons proliferation 
controls. Such items will generally be denied;
    All dual-use items subject to missile proliferation controls. Such 
items will generally be denied;
    All items subject to nuclear weapons proliferation controls. Such 
items will generally be considered on a case-by-case basis; 
and [[Page 25271]] 
    All military related items (items controlled by the Commerce 
Control List (CCL) entries ending with the number 18. Such items will 
generally be denied.
    This proposed rule does not reflect these 6(j) controls for Sudan 
on either the Country Chart or on the CCL. However, they will be 
incorporated into the final rule.
    Additional unilateral trade restrictions under 6(a) for Sudan are 
currently under review within the Administration.
    This Part would not include controls and licensing policies that 
apply to exports and reexports to embargoed destinations and additional 
controls under the EAR implementing U.N. sanctions. Currently, the 
embargoed countries include Cuba, Libya, North Korea, the Federal 
Republic of Yugoslavia (Serbia and Montenegro), and Iraq. An exporter 
or reexporter seeking to export or reexport items to these countries 
should first review Part 746, Embargoes and Other Special Controls.
    Additionally, this Part would not address controls and licensing 
policies for items controlled for ``short supply'' reasons. These would 
be covered in Part 754, Short Supply Controls.

Part 744--Control Policy--End-User/End-Use Based

    This part contains prohibitions against exports, reexports, and 
activities related to certain end-uses and end-users. Specifically, 
Sec. 744.2 would prohibit exports and reexports of items subject to the 
EAR, without a validated license, if at the time of the export or 
reexport you know or have reason to know, that the item will be used in 
nuclear explosive, or other safeguarded or unsafeguarded, nuclear 
activities. Section 744.3 would prohibit the export or reexport, 
without a validated license, of certain items to be used for missile 
end-uses. Similarly, section Sec. 744.4 would prohibit the export or 
reexport of items with certain chemical and biological weapon end-uses. 
Next, Sec. 744.5 would prohibit the export or reexport of items to be 
used for specified nuclear maritime end-uses. Finally, Sec. 744.6 would 
place restrictions on certain proliferation-related activities of U.S. 
persons. For purposes of this prohibition the term ``U.S. person'' 
would mean citizens, permanent resident aliens, or protected 
individuals as defined in the immigration laws; any judicial person 
organized under the laws of the United States or any U.S. jurisdiction; 
and any person physically in the United States.
    This part would also contain prohibitions against exports, 
reexports, and certain transfers to specified end-users.

Part 746--Embargoes and Other Special Controls

    Part 746 of the proposed regulations contains all the control 
requirements that apply to embargoed destinations, including Cuba, the 
Federal Republic of Yugoslavia (Serbia and Montenegro), Iraq, Libya, 
and North Korea. It also contains the control requirements implementing 
U.N. sanctions that result in additional EAR controls on certain 
countries, such as Rwanda.
    In addition, Part 746 would add provisions to reflect current 
policy on exports and reexports to Cuba of medical items and 
telecommunications equipment, and reexports to Libya of items covered 
by United Nations Resolutions. This Part also would include new 
Department of Commerce license requirements that codify existing United 
States policy implemented by the Treasury Department for exports and 
reexports to Iraq. It would also reflect current policy by clarifying 
certain eligibility requirements for the Humanitarian License 
Procedure. BXA is considering eliminating the Humanitarian License 
Procedure, and would therefore be particularly interested in comments 
on its usefulness. Finally, this Part would include Supplements 
containing general information on embargoes and sanctions administered 
by other federal agencies.

Part 748--Applications (Classification, Advisory, and License) and 
Documentation

    Part 748 describes the process for applying for a classification 
request, advisory opinion, or a license. All such requests and license 
applications (for both exports and reexports) would be submitted on a 
new form, BXA-748P. The BXA-748P would replace the BXA-622P and the 
BXA-699P. The Form BXA-648P has been eliminated along with the Form 
BXA-685P. Form BXA-648P was used for notification of Delivery 
Verification requirement, while Form BXA-685P was required for certain 
amendments to outstanding licenses. When this rule becomes final, with 
certain exceptions, exporters and reexporters would now be required to 
submit a new license application when requesting modification to an 
outstanding license.
    This change would allow BXA to ensure a complete electronic record 
is maintained of all licenses, classification requests, and advisory 
opinions. Instructional information contained on Form BXA-648P has been 
incorporated into the text of the regulations. BXA would notify 
exporters of the requirement for a Delivery Verification directly on 
the license, instead of a separate piece of paper. No changes have been 
made to the structure of the requirement.
    The requirement for exporters to obtain Form BXA-629P from their 
purchaser and consignees would be modified under this proposed rule. 
BXA would permit you to obtain either a new Form BXA-711 or a letter 
with the same certifications that appear on the new Form BXA-711. The 
new Form BXA-711 would be a one-sided redraft of the current Form BXA-
629P.
    Items currently captured by the current basket categories, i.e., 
ECCNs ending in the letter ``G,'' will remain subject to the EAR as 
defined in Part 732 in this proposed rule even though they are not 
listed on the CCL at Part 774. For such items, BXA will respond to a 
classification request by indicating that though they are subject to 
the EAR, they are not listed in the CCL. This will be noted by the 
symbol ``NOL'', which means the items are ``not on the list'' but are 
subject to the EAR. For items listed on the CCL under this proposed 
rule, BXA will continue to respond to classification requests by 
indicating the appropriate ECCN. Under this Part 748 of the proposed 
regulation, unless items are subject to General Prohibitions Four 
through Ten, you need not apply for a license to export or reexport 
such items that are not on the list (NOL).
    BXA specifically invites comments on the question of how BXA should 
respond to classification requests for items that are not listed on the 
CCL but that are subject to the EAR. Does the designator ``NOL'' 
appropriately replace the current ECCNs ending in the letter ``G''? 
Should this be the appropriate entry for the Shippers' Export 
Declaration (SED) as proposed? Readers should note that this topic is 
related to the proposed requirement to indicate ``NLR'' on the SED for 
listed items that do not require a license to the specific country of 
destination as indicated on the Country Chart.
    A Supplement No. 4 to Part 748 would be added. This supplement 
would replace current Part 768. There are no revisions at this time to 
the existing text contained in this Part, which is being incorporated 
into this proposed rule by reference. The current Part 768 is at 15 CFR 
768, and you may obtain a copy of Supplement No. 4 to Part 748 by 
downloading it electronically from FedWorld via Internet or through 
your modem by dialing (703) 321-3339. This service is 
[[Page 25272]] free, except for long distance telephone charges and any 
standard charges you already incur for the use of the Internet or other 
commercial online service. The current Antiboycott Regulations are not 
on FedWorld.

Part 750--License Processing

    Part 750 describes the processing procedures of any application 
submitted to BXA, whether for a classification request, advisory 
opinion, or a license. In addition to procedures specific to each type 
of application, time frames (established in the draft 1994 Export 
Administration Act bill) associated with each are provided. This part 
also would provide a clear description of the interagency dispute 
resolution process and the interrelationship between all agencies and 
departments reviewing license applications. All aspects of license 
issuance would be addressed including, actual issuance of the license, 
validity periods, transfers, revocations, suspensions, and shipping 
tolerances.
    The licensing processing procedures remain under review within the 
Administration and will be the subject of a separate Federal Register 
notice once a final policy is completed.
    Validity periods for the various types of licenses would be 
synchronized. The new validity period for all licenses (except those 
issued for items subject to short supply controls, or those processed 
under emergency handling procedures) would be 2 years. This alignment 
would result in a validity period for all reexport and parts and 
components licenses, and an increase in the validity period for 
licenses authorizing temporary exports of items.

Part 752--Special Comprehensive License

    Part 752 describes the provisions of the Special Comprehensive 
License (SCL). The SCL would consolidate the activities currently 
authorized under the Project, Distribution, Service Supply, Service 
Facilities, and Special Chemical Licenses and would provide for 
additional flexibility to BXA in shaping appropriate SCLs and internal 
control programs. For example, the Project and Service Supply Licenses 
currently authorize exports and reexports to countries of the former 
Soviet Union, Eastern European, and the People's Republic of China 
(PRC), but the Distribution License, which includes an extensive 
mandatory Internal Control Program that is not required for the Project 
License and the Service Supply Procedure, does not allow exports and 
reexports for distribution in these same countries. The SCL would also 
conform item and country eligibility.
    All items subject to the EAR would be eligible for export and 
reexport under the SCL, except:
    Items identified by the letters MT in the ``Reason for Control'' 
paragraph on the Commerce Control List (CCL);
    Biologicals, or equipment and materials that can be used in the 
production of biologicals (items identified under ECCNs 1C61, 1B71, 
1E61, and 1E70);
    Communication intercepting devices identified under ECCN 5A80 on 
the CCL;
    Chemicals and chemical equipment and materials that can be used in 
the production of chemical weapons to destinations listed in Country 
Group D:3; (items identified under ECCNs 1C60, 1E60, 1B70, and 1D60);
    Maritime (civil) nuclear propulsion systems or associated design or 
production software and technology identified in Sec. 774.5;
    Items specifically identified as ineligible by BXA on your approved 
SCL, and
    Additional items may be excluded consistent with multilateral 
obligations.
    Exports and reexports of items identified as NP in the ``Reason for 
Control'' paragraph on the CCL will not generally be authorized under 
an approved SCL for export or reexport to countries listed in Country 
Group D:2.
    All countries are eligible to receive exports and reexports under 
the SCL except:
    Countries designated by the Secretary of State that have repeatedly 
provided support for acts of international terrorism (Cuba, Libya, 
Iran, Iraq, North Korea, Sudan, Syria).
    Countries listed in Country Group E; and
    Other countries that BXA may declare on a case-by-case basis.
    SCLs are designed to allow multiple exports and reexports of 
controlled items. Because BXA does not review each individual 
transaction covered by a SCL, parties to the SCL would be required to 
have the mechanisms in place to ensure that each export and reexport 
made under a SCL meets all the terms and conditions of the license, as 
well as the EAR. It is through Internal Control Programs (ICPs) that 
the Special Comprehensive License Holder (SLH) and the Special License 
Consignee (SLC) assure that exports and reexports are not made contrary 
to the national security, nonproliferation, and foreign policy 
objectives of the EAR. ICPs are designed to provide that mechanism and 
are a pre-requisite to approval of a SCL.
    There are three levels, or examples, of ICPs provided for in Part 
752. The elements of each ICP would reflect the complexity of the 
activities authorized under the SCL, the countries involved, and the 
relationship between the SLH and the approved consignees. A general 
description of the elements of each of the three of ICPs is included, 
as well as guidance on which ICP you would need to establish before 
using the SCL.
    To ensure that exports under the SCL do not jeopardize our national 
security and foreign policy interests, BXA would review each 
application for a SCL on a case-by-case basis, and may limit the scope 
of eligible items, countries, end-users, and end-uses. In addition, BXA 
may require inclusion in an ICP of any combination of elements from one 
or more levels, depending upon the nature of each SCL request.
    The provisions of this Part would also require participating 
entities to audit their export control programs, and authorize BXA to 
conduct systems reviews. These audits and review would ensure that the 
exporter and any authorized consignees have fulfilled all the 
requirements of the SCL, and that any exports and reexports made under 
the SCL have not and will not jeopardize national security interests.

Part 754--Short Supply

    This part would continue to implement the provisions of Section 7, 
``Short Supply Controls'', of the Export Administration Act of 1979, 
and similar provisions in other laws that are not based on national 
security and foreign policy reasons. Provisions in this part include 
controls and licensing policies on crude oil, petroleum products, 
unprocessed western red cedar timber, and exports and reexports of 
horses by sea. This part also would include certain License Exceptions 
that would permit exports and reexports without a license of western 
red cedar and petroleum products. Provisions in the current regulations 
dealing with petitions for monitoring or controls on recyclable 
metallic materials and registration of agricultural commodities would 
be removed but would be incorporated in the EAR by reference.
    The provisions concerning exports and reexports of crude oil and 
petroleum products have been reorganized and revised for clarity. 
Certain archaic provisions have been removed.
    A recent final rule regarding certain exports of crude oil is not 
incorporated into the draft rule, but it will be incorporated into the 
final rule.

Part 756--Appeals

    This part describes the procedures that would be applicable to 
appeals [[Page 25273]] from administrative actions taken by BXA. 
Administrative action is any action (not including an administrative 
enforcement proceeding) taken under the EAA or EAR with respect to a 
particular person, including denial of a license application, return of 
a license application for other than procedural deficiencies or 
additional information, or classification of an appellant's commodity. 
Essentially, any person directly and adversely affected by an 
administrative action would be allowed to appeal to the Under Secretary 
for Export Administration for reconsideration of that administrative 
action. The procedures for such an appeal would be unchanged from that 
currently existing in the EAR.

Part 758--General Export Clearance Requirements

    This part deals with requirements imposed on exporters and others 
regarding the movement of items subject of the EAR out of the country. 
The purpose of this part would be to ensure that the movement of items 
subject to the EAR conforms to the requirements of the export license 
or other authorization for their export. Under this proposed 
regulation, certain items are subject to the EAR as defined in Part 732 
even though they are not listed on the CCL at Part 774. If such items 
are not subject to any of the ten general prohibitions, the symbol 
``NOL'' must be entered in the appropriate place on the Shippers Export 
Declaration.
    Under this proposed rule, certain items are listed on the CCL but 
do not require a license to all destinations under General Prohibitions 
One, (Exports and Reexports in the Form Received), Two (Parts and 
Components Reexports), and Three (Foreign Produced Direct Product 
Reexports). If General Prohibitions Four through Ten also do not apply, 
the symbol ``NLR'' must be entered in the appropriate place on the 
Shippers Export Declaration. The term ``NLR'' represents exports of 
listed items when no license is required.
    BXA specifically invites comments on the use of the designators 
``NOL'' and ``NLR'' for the SED. BXA currently feels that this 
distinction allows a separate classification of ``NOL'' for items 
currently in ECCNs ending in the letter ``G'', which items would not be 
listed on the CCL in this proposed rule. This is the rationale for 
distinguishing ``NOL'' from ``NLR'', which merely refers to an item on 
the CCL that does not require a license to the specific destination in 
a given export or reexport. One early comment suggested that the term 
``NLR'' be the only entry required on the SED for both of these sets of 
items. If BXA adopted such an approach, what would then be the best 
alternative for classifying items subject to the EAR but not listed on 
the CCL, i.e. items under current ECCNs ending in the letter ``G''?
    This Part imposes specific responsibilities on the persons involved 
in export or reexport transactions to ensure compliance with other 
provisions of the EAR and of the Foreign Trade Statistics Regulations 
(15 CFR Part 30), including exporters, freight forwarders, exporters' 
agents, carriers and all other persons. It prohibits any person from 
engaging in certain proscribed conduct.
    Part 758 imposes specific responsibilities for assuring that 
Shipper's Export Declarations, bills of lading and air waybills are 
accurately filled out and are consistent with the export license or 
other authorization for the export to which they correspond. It 
restricts the conduct of exporters, forwarders, carriers and others to 
assure that the delivery abroad of items subject to the EAR is in 
accordance with the terms of the export license, exception to the 
licensing requirement, or other authorization. In some cases, it 
imposes duties on parties to the transaction to return the items to the 
United States or take steps to prevent them from entering the commerce 
of a foreign country.
    This proposed rule makes several changes to the existing rule. In 
several instances the existing regulations require carriers to conform 
their documents or their routing to statements made on Shipper's Export 
Declarations. In recent years, more exceptions to the Shipper's Export 
Declaration filing requirement have been created. This proposed rule 
deals with the exceptions by requiring carriers to conform their 
documents and routing to the Shipper's Letters of Instruction if there 
is no Shipper's Declaration or to other written instructions if there 
is no Shipper's Letter of Instruction.
    This proposed rule does not contain some of the specific provisions 
relating to who may sign the Shipper's Export Declaration, the status 
and duties of forwarding agents, requirements for power of attorney 
currently found in 15 CFR Secs. 786.3(d) & (e) which duplicate 
provisions of the Foreign Trade Statistics Regulations.
    This proposed rule replaces the terms ``commodity'' or 
``commodities'' with the terms ``item'' or ``items'' in several places 
to reflect coverage of technology and software under the EAR. The 
Foreign Trade Statistics Regulations and the Shipper's Export 
Declaration form still refer to ``commodity'' or ``commodities'', but 
they are being reviewed by the Bureau of the Census for conforming 
changes. For shipments where items requiring a license for export are 
listed on the same Shipper's Export Declaration as items not requiring 
an export license this proposed rule eliminates the requirement that 
the person filling out the declaration place an asterisk next to the 
items being shipped under a general license and replaces it with a 
requirement that the license number and expiration date or symbol 
authorizing export without a license be shown below the description of 
the item. This change would make the EAR consistent with the 
corresponding portions of the Foreign Trade Statistics Regulations 
which require that the license number and expiration date or general 
license symbol be shown below the commodity to which it applies.
    Current regulations require an exporter whose shipment under a 
validated export license is unloaded at an unscheduled stop to notify 
the Office of Export Licensing of the proposed disposition of the 
items. The proposed rule changes the term ``validated license'' to 
``export license'' and requires the exporter to wait for a response 
from the Office of Exporter Services before proceeding with the 
disposition.
    The proposed rule revises the destination control statements that 
exporters must place on shipping documents to place other parties to a 
transaction on notice of U.S. export control regulations. The revisions 
make the destination control statements conform with the country groups 
elsewhere in the proposed regulations instead of with the country 
groups contained in the existing regulations. The revisions would also 
make the destination control statements conform with the concept of 
export licenses, License Exceptions and other authorizations (e.g. NOL 
and NLR) rather than the concept of general licenses and validated 
licenses.

Part 760--Restrictive Trade Practices or Boycotts

    This Part would replace current Part 769. There are no revisions to 
the existing text contained in this Part, which is being incorporated 
into this proposed rule by reference. The current Part 769 is at 15 CFR 
769, and you may obtain a copy of Part 760 by downloading it 
electronically from FedWorld via Internet or through your modem by 
dialing (703) 321-3339. This service is free, except for long distance 
telephone charges and any standard charges you already incur for the 
use of the Internet. The current Antiboycott Regulations are not on 
FedWorld. [[Page 25274]] 

Part 762--Recordkeeping

    This part has been reorganized and restated to eliminate the 
requirement that the regulated persons obtain BXA approval prior to 
destroying original documents and replacing them with electronic, 
magnetic, photographic or other images. It would set standards for 
retrieving and legibility of such records. This part would also make it 
clear that regulated entities may always keep the records that must be 
kept pursuant to this part in the form in which that person receives or 
creates it. In addition, this part would extend the recordkeeping to 
five years to coincide with the applicable statue of limitations.

Part 764--Enforcement

    Part 764 has been reorganized to deal primarily with violations and 
sanctions. The description of sanctions has been broadened to state 
that conduct which constitutes a violation of the EAA or EAR may also 
be prosecuted under certain other sections of the United States Code 
(Sec. 764.3(b)), and such violative conduct may be subject to statutory 
or other sanctions or protective measures under the EAA or under other 
statutory or regulatory provisions (Sec. 764.3(c)).
    Provisions dealing with denial of export privileges would be 
clarified so that almost all relevant information can be found in Part 
764 of the EAR. Part 764 provisions are organized by violation 
(Sec. 764.2(k)), description of sanction (Sec. 764.3(a)(2)) and terms 
of a standard denial order (Supplement No. 1), and reference to the 
Denied Persons List (Supplement No. 2). This method of organization 
makes it easier for the world to understand how to comply with denial 
orders.
    The former frequently-used Sec. 787.6 violation of ``export, 
diversion, reexport, transshipment'' has been replaced by the new 
Sec. 764.2(a) violation entitled ``engaging in prohibited conduct.'' 
The formulation of the new violation is intended to take into account 
the new EAR Part 734 - General Prohibitions, as well as to encompass 
the former Sec. 787.6. It provides that no person may engage in any 
conduct prohibited by, or refrain from engaging in any conduct required 
by, the EAA, the EAR, or any order, license or authorization issued 
thereunder.
    The detailed provisions that set forth recordkeeping requirements 
have been moved to Part 762, while the violation for failing or 
refusing to comply with recordkeeping requirements appears in 
Sec. 764.2(i), along with other defined violations.

Part 766--Administrative Enforcement Proceedings

    Part 766 has been reorganized to remove descriptions of sanctions 
available for violations, placing them instead in Part 764 
(Enforcement), and to separate the procedures for imposing sanctions 
for violations from the procedures for taking protective enforcement 
measures (temporary denial orders and denial orders authorized by 
Sec. 11(h) of the EAA). Further, this Part has been re-designed to 
simplify and expedite proceedings, including the addition of sections 
specifically authorizing interlocutory review of rulings by the Under 
Secretary (Sec. 766.14) and permitting cases to be disposed of through 
``summary decisions,'' such as through motions for summary judgment 
(Sec. 766.8).
    Significant changes would be made to simplify and clarify the 
process by which cases are settled (Sec. 766.18). To avoid the 
impression that settlements are in any way one-sided, BXA would 
substitute the term ``settlement agreement'' for the term ``consent 
agreement.'' Virtually all orders approving settlement agreements would 
be entered by the Assistant Secretary for Export Enforcement, obviating 
the need for Administrative Law Judge (ALJ) and Under Secretary review. 
The proposal makes clear that cases can be settled even if they are 
before the Under Secretary for decision, and codifies case law holding 
that cases may be settled without a finding that violations occurred. 
Finally, the proposed rule would add specific guidance that any 
settlement relates only to claims at issue in the administrative 
enforcement proceeding and has no impact on any criminal prosecution.
    A new section (Sec. 766.23) would consolidate all procedures that 
apply when naming or adding related persons to orders issued under Part 
766. It codifies the current practice of permitting BXA to name related 
persons when the order is first issued and continues BXA's authority to 
add related persons to an order at a later date through a ``show 
cause'' procedure. The proposal would also provide procedures whereby 
related persons may appeal to the ALJ any finding that they are related 
to the respondent.

Part 768--Foreign Availability Determination Procedures and Criteria

    Foreign availability exists when the Secretary determines that an 
item is comparable in quality to an item subject to U.S. national 
security export controls, and is available-in-fact to a country, from a 
non-U.S. source, in sufficient quantities to render the U.S. export 
control of that item or the denial of an export license ineffective. 
For a controlled country, such control or denial is ``ineffective'' 
when maintaining such control or denying a specific license would not 
restrict the availability of goods or technology that would make a 
significant contribution to the military potential of the controlled 
country or combination of countries that would prove detrimental to the 
national security of the United States.
    There are two types of foreign availability, foreign availability 
to a controlled country; and foreign availability to a non-controlled 
country.
    A foreign availability assessment is an evidentiary analysis that 
BXA conducts to assess the foreign availability of a given item under 
the assessment criteria. BXA uses the results of the analysis in 
formulating its recommendation to the Secretary on whether foreign 
availability exists for a given item. If the Secretary determines that 
foreign availability exists, the Secretary will decontrol the item or 
approve the license in question, unless the President exercises a 
National Security Override.
    The procedures by which BXA would conduct a foreign availability 
assessment, the criteria for control, and a National Security Override 
would be unchanged from that currently existing in the EAR.

Part 770--Interpretations

    This part would provide commodity, technology, and software 
interpretations. These interpretations would clarify the scope of 
controls where such controls are not readily apparent for the Commerce 
Control List and from other provisions of the EAA.

Part 772--Definitions

    This part would define terms as used in the Export Administration 
Regulations. Many of the terms currently defined in the EAR would be 
used in this part, including the addition of several new terms, such as 
``export'', ``Advisory Committee on Export Policy (ACEP)'', ``Export 
Administration Review Board (EARB)'', and other terms that would define 
new concepts, such as ``License Alternatives''.
    BXA is particularly interested in comments from the business 
community on what terms they would like defined that are not already 
included in this part.

Part 774--The Commerce Control List

    Former Supplements 1, 2, and 3 to Sec. 779.1 (the Commerce Control 
List, [[Page 25275]] General Technology and Software Notes, and 
Definitions to the CCL, respectively) would become Supplements 1, 2, 
and 3 to Part 774. Supplement No. 1 would be amended by removing the 
references to ECCN's ending in the letter ``G'' (basket categories). 
Such ECCNs would continue to remain subject to the EAR, even though 
they would not appear on the CCL. In addition, Supplement No. 1 would 
be amended by revising the ``Requirements'' section of each ECCN to 
reflect the new structure of the EAR. The ``List of Items Controlled'' 
section and Supplement Nos. 2 and 3 would not be revised and will be 
included with the publication of the final rule.
    The current ``List of Items Controlled'' sections of each ECCN on 
the CCL and Supplement Nos. 2 and 3 are at 15 CFR 779, and you may 
obtain a copy of Part 774 by downloading it electronically from 
FedWorld via Internet or through your modem by dialing (703) 321-3339. 
This service is free, except for long distance telephone charges and 
any standard charges you already incur for the use of the Internet.

Summary of Comments to the ANPRM

Rulemaking Requirements

    1. For purposes of Executive Order 12866, this proposed rule has 
been determined to be significant.
    2. This proposed rule contains two new collections of information 
subject to the requirements of the Paperwork Reduction Act, 44 U.S.C. 
ch. 35. The new ``Multipurpose Application'' replaces the ``Application 
for Export License'', ``Request for Reexport Authorization'', and the 
``Request for Amendment Action'' forms. The ``Statement by Ultimate 
Consignee and Purchaser'' form has also been revised. There is a new 
``Special Comprehensive License'' which consolidates the procedures for 
applying for the former project, distribution, service supply and 
chemical licenses. All other collections of information contained in 
the rulemaking have been previously approved by OMB. The public 
reporting burdens for the new collections of information are estimated 
to average 45 minutes for the Multipurpose Application and between 20 
and 40 hours for the Special Comprehensive License. These estimates 
include the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collections of information. Send comments regarding these 
burden estimates or any other aspect of these collections of 
information, including suggestions for reducing the burden, to Larry E. 
Christensen, Acting Director, Regulatory Policy Division, Bureau of 
Export Administration, (202) 482-2440.
    3. For purposes of Executive Order 12612, this proposed rule does 
not contain policies with Federalism implications sufficient to warrant 
preparation of a Federalism Assessment.
    4. Pursuant to authority at 5 U.S.C. 553(a)(1) and section 13(a) of 
the Export Administration Act, 50 U.S.C. 2401--2420 et seq., though 
prior notice and an opportunity for public comment are provided, such 
procedures are not required for this regulatory action. As such, no 
Initial or Final Regulatory Flexibility Analysis is required under 
sections 3 and 4 of the Regulatory Flexibility Act, 5 U.S.C. 603(a) and 
604(a), and none has been prepared.
    5. Although the Export Administration Act expired on August 20, 
1994, the President invoked his authority under the International 
Emergency Economic Powers Act, through Executive Order 12924, August 
19, 1994, and determined that, to the extent permitted by law, the 
provisions of the Export Administration Act shall be extended so as to 
continue in full force and effect and amend, as necessary, the export 
control system previously implemented, as the Export Administration 
Regulations, pursuant to the Export Administration Act.

List of Subjects

15 CFR Part 730

    Administrative practice and procedure, Advisory committees, 
Exports, Foreign trade, Reporting and recordkeeping requirements, 
Strategic and critical materials.

15 CFR Part 732

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 734

    Administrative practice and procedure, Exports, Foreign trade.

15 CFR Part 736

    Exports, Foreign trade.

15 CFR Part 738

    Exports, Foreign trade.

15 CFR Part 740

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 742

    Exports, Foreign trade.

15 CFR Part 744

    Exports, Foreign trade, Reporting and recordkeeping requirements.

15 CFR Part 746

    Embargoes, Exports, Foreign trade, Reporting and recordkeeping 
requirements.

15 CFR Part 748

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 750

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 752

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 754

    Exports, Foreign trade, Forests and forest products, Petroleum, 
Reporting and recordkeeping requirements.

15 CFR Part 756

    Administrative practice and procedure, Exports, Foreign trade, 
Penalties.

15 CFR Part 758

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 760

    Boycotts, Exports, Foreign trade, Reporting and recordkeeping 
requirements.

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Foreign trade, Reporting 
and recordkeeping requirements.

15 CFR Part 764

    Administrative practice and procedure, Exports, Foreign trade, Law 
enforcement, Penalties.

15 CFR Part 766

    Administrative practice and procedure, Confidential business 
information, Exports, Foreign trade, Law enforcement, Penalties.

15 CFR Part 768

    Administrative practice and procedure, Exports, Foreign trade, 
[[Page 25276]] Reporting and recordkeeping requirements.

15 CFR Part 770

    Exports, Foreign trade.

15 CFR Part 772

    Exports, Foreign trade.

15 CFR Part 774

    Exports, Foreign trade.

    Dated: April 10, 1995.
Sue E. Eckert,
Assistant Secretary for Export Administration.

    For the reasons set forth in the preamble, Subchapter C, Chapter 7 
of Title 15, Code of Federal Regulations is proposed to be amended as 
follows:
    1. Parts 730, 732, 734, 736, 738, 740, 742, 744, 746, 748, 750, 
752, 754, 756 and 758 are added to read as follows:

PART 730--GENERAL INFORMATION

Sec.
730.1  What these regulations cover.
730.2  Statutory authority.
730.3  Dual-use exports.
730.4  Other control agencies and departments.
730.5  Coverage of more than exports.
730.6  Control purposes.
730.7  License requirements and exceptions.
730.8  How to proceed and where to get help.
730.9  Boycott.
730.10  Caution.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7429; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C 466(c); E.O. 12924.


Sec. 730.1  What these regulations cover.

    These Export Administration Regulations (EAR) (15 CFR, subchapter 
C, chapter 7) are issued by the Bureau of Export Administration (BXA) 
of the United States Department of Commerce under laws relating to the 
control of certain exports, reexports, and activity. In addition, the 
EAR implement antiboycott law provisions requiring regulations to 
prohibit specified conduct by United States persons that has the effect 
of furthering or supporting boycotts fostered or imposed by a country 
against a country friendly to United States.


Sec. 730.2  Statutory authority.

    The EAR have been designed primarily to implement the Export 
Administration Act of 1979, as amended, 50 U.S.C. app. 2401-2420 (EAA). 
There are numerous other legal authorities underlying the EAR. These 
are listed in the Federal Register Notices promulgating the EAR and at 
the beginning of each Part of the EAR in the Code of Federal 
Regulations. 15 CFR parts 730-774. From time to time, the President has 
exercised authority under the International Emergency Economic Powers 
Act with respect to the EAR. 50 U.S.C. 1701-1706 (IEEPA). The EAA is 
not permanent legislation, and when it has lapsed due to the failure to 
enact a timely extension, Presidential executive orders under IEEPA 
have directed and authorized the continuation in force of the EAR.


Sec. 730.3  Dual-use exports.

    The convenient term ``dual-use'' is sometimes used to distinguish 
the types of items covered by the EAR from those that are covered by 
the regulations of certain other export licensing agencies. In general, 
the term dual-use serves to distinguish EAR-controlled items that can 
be used both in sensitive (e.g., military or nuclear) and other, non-
sensitive applications from those that are (a) weapons or military-
related in use or design and subject to the controls of the Department 
of State (22 CFR parts 120 through 130) or (b) subject to the nuclear-
related controls of the Department of Energy or the Nuclear Regulatory 
Commission (10 CFR part 110). Note, however, that although the short-
hand term dual-use may be employed to refer to the entire scope of the 
EAR, the EAR also apply to some items that have solely civil uses.


Sec. 730.4  Other control agencies and departments.

    In addition to the agencies mentioned in the preceding section that 
license the export of nuclear and military-related items, there are 
other agencies with jurisdiction over certain narrower classes of 
exports. These include the Department of Treasury's Office of Foreign 
Assets Control (OFAC) (31 CFR parts 500 through 590), which administers 
controls against certain countries which are the object of sanctions 
affecting not only exports, but also imports and financial dealings. 
(Some OFAC regulations provide for the licensing by BXA of exports and 
reexports which are permitted as exceptions to the embargo.) For your 
convenience, the list that follows identifies agencies with regulatory 
jurisdiction over certain types of exports and reexports. This is not a 
comprehensive list, and the brief descriptions are intended are only 
generally indicative of the types of controls administered and/or 
enforced by each agency.

Defense Services and Defense Articles

Department of State, Office of Defense Trade Controls, Tel. (703) 
875-6644, 22 CFR parts 120 through 130

Foreign Assets and Transactions Controls

Department of Treasury, Office of Foreign Assets Control, Tel. (202) 
622-2420, 31 CFR parts 500 through 590

Narcotics, Dangerous Drugs, Processing Equipment

Drug Enforcement Administration, Tel. (703) 307-1000, 21 CFR parts 
1311 through 1313

Natural Gas and Electric Power

Department of Energy, Tel. (202) 586-1000, 10 CFR Part 305, 320 
[reserved]; 18 CFR Part 34

Nuclear; Nuclear Materials, Reactor Vessels, Specially Designed 
Commodities

Nuclear Regulatory Commission, Tel. (301) 492-7000, 10 CFR Part 110

Nuclear; Technical Data for Nuclear Weapons/Special Nuclear Materials

Department of Energy, Tel. (202) 586-5000, 10 CFR Part 810

Patent Filing Data Sent Abroad

Patent and Trademark Office, Tel. (703) 557-4636, 37 CFR 5.11; 15 
CFR 732.3(b)(4) and 732.10

Watercraft

U.S. Coast Guard documented watercraft of 5 net tons or more--export 
or transfer to foreign interest, U.S. Maritime Administration, Tel. 
(202) 366-5807, 46 App. U.S.C. 808, 839


Sec. 730.5  Coverage of more than exports.

    The core of the export control provisions of the EAR concerns 
exports from the United States. You will find, however, that some 
provisions give broad meaning to the term ``export'', apply to 
transactions outside of the United States, or apply to activities other 
than exports.
    (a) Reexports. Commodities, technology, and software (referred to 
collectively in the EAR as ``items'') that have been exported from the 
United States are generally subject to the EAR with respect to 
reexport. Many such reexports, however, will qualify for an exception 
from licensing requirements.
    (b) Foreign products. In some cases, authorization to export 
technology from the United States will be subject to assurances that 
items produced abroad that are the direct product of that technology 
will not be exported to certain destinations without authorization from 
BXA.
    (c) Deemed exports. Certain actions that you might not regard as an 
``export'' in other contexts do constitute an export subject to the 
EAR. For example: the electronic transmission of non-public 
[[Page 25277]] data that will be received abroad; the release of 
technology to a foreign national in the United States through such 
means as demonstration or oral briefing; shipments that might not be 
deemed ``exports'' for other purposes, such as the return of foreign 
equipment to its country of origin after repair in the United States or 
shipments from a U.S. foreign trade zone.
    (d) U.S. person activities. To counter the proliferation of weapons 
of mass destruction, the EAR restrict the involvement of ``United 
States persons'' (as defined in the EAR) anywhere in the world in 
exports of foreign-origin items, or in providing services or support, 
that may contribute to such proliferation.


Sec. 730.6  Control purposes.

    The export control provisions of the EAR are intended to serve the 
national security, foreign policy, nonproliferation, and short supply 
interests of the United States and, in some cases, to carry out its 
international obligations. Some controls are designed to restrict 
access to dual-use items by countries or persons that might apply such 
items to uses inimical to U.S. interests. These include controls 
designed to stem the proliferation of weapons of mass destruction and 
controls designed to limit the military and terrorism-support 
capability of certain countries designated by reason of their support 
of terrorist activity. The effectiveness of many of the controls under 
the EAR is enhanced by their being maintained as part of a multilateral 
system of controls. Multilateral export control cooperation is sought 
through arrangements such as the Nuclear Suppliers Group, the Australia 
Group, and the Missile Technology Control Regime. The EAR also includes 
some export controls to protect the United States from the adverse 
impact of the unrestricted export of commodities in short supply.


Sec. 730.7  License requirements and exceptions.

    A relatively small percentage of exports and reexports subject to 
the EAR require an application to BXA for a License. Most such activity 
is permitted by one or more of the License Exceptions described in the 
EAR, in which case no application need be made to BXA. In such a case, 
reference to the pertinent License Exception is to be entered on the 
Shipper's Export Declaration, a document that is to be submitted to the 
Customs office at the port of export.


Sec. 730.8  How to proceed and where to get help.

    (a) Self-help. In order to determine what the rules are and what 
you need to do, review the titles and the introductory sections of the 
parts of the EAR. By referring next to part 736, Steps for Determining 
Licensing Requirements, you will find guidance to enable you to tell 
whether or not your transaction is subject to the EAR and, if it is, 
whether it qualifies for a License Exception or must be authorized 
through issuance of a license.
    (b) Why the EAR are so detailed. Some people will find the great 
length of the EAR and their extensive use of technical terms 
intimidating. BXA believes, however, that such detail and precision can 
and does serve the interests of the public. The detailed listing of 
technical parameters in the Commerce Control List (contained in 
Supplement No. 1 to part 774 of this subchapter) establishes precise, 
objective, criteria. This, should, in most cases, enable the exporter 
to ascertain control status. Broader, more subjective criteria would 
leave exporters more dependent upon interpretations and rulings by BXA 
officials. Moreover, much of the detail in the Commerce Control List is 
derived from multilaterally adopted lists, and the specificity serves 
to enhance the uniformity and effectiveness of international control 
practices and to promote the ``level playing field.'' The detailed 
presentation of such elements as licensing and export clearance 
procedures enables exporters to find in one place what they need to 
know to comply with pertinent requirements. Of special importance is 
the detailed listing of License Exception criteria, as these enable an 
exporter to determine quickly, and with confidence, that a transaction 
can go forward without delay. Finally, some of the detail results from 
the need to draft the EAR with care in order to avoid loop-holes and to 
permit effective enforcement.
    (c) Where to get help. Throughout the EAR you will find information 
on offices you can contact for various purposes and types of 
information. General information, information on how to obtain forms 
and publications, and information on training programs offered by BXA, 
is available from the Office of Exporter Services through both its:

Exporter Counselling Division, U.S. Department of Commerce, 14th and 
Pennsylvania Avenue, N.W., Room H1099D, Washington, D.C., 20230, 
Telephone number: (202) 482-4811, FAX number: (202) 482-3617.
    and
Western Regional Office, U.S. Department of Commerce, 3300 Irvine 
Avenue, Suite 345, Newport Beach, California 92660-3198, Telephone 
number (714) 660-0144, FAX number (714) 660-9347.


Sec. 730.9  Boycott.

    Part 760, Restrictive Trade Practices or Boycotts, implements the 
antiboycott provisions of the EAA. There are also boycott-related rules 
in section 999 of the Internal Revenue Code which deny tax benefits for 
certain types of boycott-related agreements. The EAR prohibits certain 
discriminatory or boycott-supporting conduct, including the furnishing 
of information in a boycott context. The Internal Revenue Code 
penalizes many of the same activities by denying the benefit of certain 
tax code provisions otherwise available for foreign operations. The EAA 
and Internal Revenue Code provisions are not completely parallel. Both 
laws also require reporting of boycott-related requests. The Internal 
Revenue Code, additionally, requires reports of operations in, with, or 
related to a boycotting country or its nationals.


Sec. 730.10  Caution.

    The General Information in this Part is just that--general. To 
achieve brevity, so as to give you a quick overview, the information in 
this Part is selective, incomplete and not expressed with regulatory 
precision. The controlling language is the language of succeeding parts 
of the EAR and of any other laws or regulations referred to or 
applicable. The content of this Part is not to be construed as 
modifying or interpreting any other language. You should not take any 
action based solely on what you read in this Part.

PART 732--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

Sec.
732.1  Introduction.
732.2  Important EAR terms and principles.
732.3  Items subject to the EAR.
732.4  Foreign-made products subject to the EAR.
732.5  Activities of U.S. and foreign persons subject to the EAR.
732.6  Assistance available from BXA for determining licensing and 
other requirements.
732.7  Publicly available.
732.8  Information resulting from fundamental research.
732.9  Educational information.
732.10  Patent applications.
732.11  Government-sponsored research covered by contract controls.
732.12  Exports involving Canada.
732.13  Exports from U.S. foreign trade zones. [[Page 25278]] 
732.14  Intransit shipments through the United States.
732.15  Shipments to territories, possessions, dependencies, or 
departments.
732.16  Effect on foreign laws and regulations.

Supplement No. 1 to Part 732--Questions and Answers--Technology and 
Software Subject to the EAR

Supplement No. 2 to Part 732--Other Departments and Agencies With 
Foreign Policy and National Security Based Controls

Supplement No. 3 to Part 732--Calculation of Values for De Minimis 
Rules

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7429; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C 466(c); E.O. 12924.


Sec. 732.1  Introduction.

    (a) This part sets forth the scope of the Export Administration 
Regulations (EAR) (15 CFR, subchapter C, chapter 7). Specifically, this 
part covers the following subjects:
    (1) It explains the usage in the EAR of the terms ``subject to the 
EAR,'' ``item,'' ``you,'' and ``export and reexport of technology and 
software.'' (Sec. 732.2 of this part)
    (2) It describes the kinds of items of U.S. origin that are subject 
to the EAR (Secs. 732.3, 732.7, 732.8, 732.9, 732.10, and 732.11 of 
this part). It also describes when foreign-made products are subject to 
the EAR and sets forth specific guidance for determining whether 
certain technology and software are subject to the EAR. (Sec. 732.4 of 
this part)
    (3) It describes the activities of U.S. persons and foreign persons 
that are subject to the EAR. (Sec. 732.5 of this part)
    (4) It notes that assistance to the public is available from BXA 
for determining whether an item or activity is within BXA's 
jurisdiction. (Sec. 732.6 of this part)
    (5) It sets forth the special policies under the EAR that apply to 
exports involving Canada. (Secs. 732.6 and 732.12 of this part) 
(Sec. 748.3 of this subchapter)
    (6) It describes how the EAR deal with exports from U.S. foreign 
trade zones. (Sec. 732.13 of this part)
    (7) It makes clear that items moving in transit through the United 
States are subject to the EAR. (Sec. 732.14 of this part)
    (8) It describes how the EAR deal with shipments to the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, and U.S. territories, dependencies, and possessions. 
(Sec. 732.15 of this part)
    (9) It makes clear that compliance with the EAR does not relieve 
any responsibilities under foreign laws or regulations. (Sec. 732.16 of 
this part)
    (b) This part does not address any of the provisions set forth in 
Part 760 of this subchapter, Restrictive Trade Practices or Boycotts.
    (c) This part does not define the scope of legal authority to 
regulate exports, including reexports, or activities found in the 
Export Administration Act and other statutes. What this part does do is 
set forth the extent to which such legal authority has been exercised 
through the EAR.


Sec. 732.2  Important EAR terms and principles.

    (a) Subject to the EAR--Definition. (1) ``Subject to the EAR'' is a 
term used in the EAR to describe those items and activities over which 
BXA exercises regulatory jurisdiction under the EAR. Conversely, items 
and activities that are not subject to the EAR are outside the 
regulatory jurisdiction of the EAR and are not affected by the 
regulations in this subchapter. The items and activities subject to the 
EAR are described in Sec. 732.2 through Sec. 732.5 of this part. You 
should review the Commerce Control List and any applicable parts of the 
EAR to determine whether an item or activity is subject to the EAR. 
However, if you need help in determining whether an item or activity is 
subject to the EAR, see Sec. 732.6 of this part. Publicly available 
technology and software not subject to the EAR are described in 
Sec. 732.7 through Sec. 732.11 and Supplement No. 1 to this part.
    (2) Items and activities subject to the EAR may also be controlled 
under export-related programs administered by other agencies. Items and 
activities subject to the EAR are not necessarily exempted from the 
control programs of other agencies. Although BXA and other agencies 
which maintain controls for national security and foreign policy 
reasons (see Supplement No. 2 to Part 732) try to minimize overlapping 
jurisdiction, you should be aware that in some instances you may have 
to comply with more than one regulatory program.
    (3) The term ``subject to the EAR'' should not be confused with 
licensing or other requirements imposed in other parts of the EAR. Just 
because an item or activity is subject to the EAR does not mean that a 
license or other requirement automatically applies. A license or other 
requirement applies only in those cases where other parts of the EAR 
impose a licensing or other requirement on such items or activities.
    (b) Use of the term ``item''. The term ``item'' is used in the EAR 
to mean ``commodities, technology, and software.'' The two terms are 
used interchangeably. When the EAR intend to refer specifically to 
commodities, technology, or software, the text will use the specific 
reference.
    (c) Use of the term ``you''. Unless otherwise indicated, the 
prohibitions and duties under the regulations in this subchapter apply 
to all persons and firms and the term ``you'' means any person, 
including a natural person or a firm. Moreover, firms are responsible 
for the acts of their employees and agents that violate the 
prohibitions and duties imposed by the EAR; and persons acting as 
employees or agents are also individually liable for such violations.
    (d) Export and reexport of technology and software. (1) ``Export'' 
of technology or software means:
    (i) An actual shipment or transmission of technology or software 
out of the United States;
    (ii) Any release of technology or source code to a foreign 
national. Such release is deemed to be an export to the home country or 
countries of the foreign national. This deemed export rule does not 
apply to persons lawfully admitted for permanent residence in the 
United States and does not apply to persons who are protected 
individuals under the Immigration and Naturalization Act (8 U.S.C. 
1324b(a)(3)). Note that the release of any item to any party with 
knowledge or reason to know a violation is about to occur is prohibited 
by Sec. 734.2(b)(8) of this subchapter; or
    (iii) Any release of technology or software of U.S.-origin in a 
foreign country.
    (2) ``Release'' of technology or software. Technology or software 
is released for export through:
    (i) Visual inspection by foreign nationals of U.S.-origin equipment 
and facilities;
    (ii) Oral exchanges of information in the United States or abroad; 
or
    (iii) The application to situations abroad of personal knowledge or 
technical experience acquired in the United States.
    (3) ``Reexport'' of technology or software means an actual shipment 
or transmission from one foreign country to another. In addition, any 
release of technology or source code to a foreign national of another 
country is a deemed reexport to the home country or countries of the 
foreign national. However, this deemed reexport definition does not 
apply to persons lawfully admitted for permanent residence. The term 
``release'' is defined in paragraph (d)(2) of this section. Note that 
the release of any item to any party with knowledge or reason to know a 
violation is about to occur is prohibited by Sec. 734.2(b)(8) of this 
subchapter. [[Page 25279]] 


Sec. 732.3  Items subject to the EAR.

    All U.S. origin items and certain foreign-made products as 
described in Sec. 732.4 of this Part, are subject to the EAR, except 
the following:
    (a) Items that are exclusively controlled for export or reexport by 
another department or agency of the U.S. Government which regulates 
exports or reexports for national security or foreign policy purposes 
(see Supplement No. 2 to part 742). For assistance in determining 
whether an item is subject to the EAR, see Sec. 732.6 of this part. See 
part 730 of this subchapter for a listing of other departments and 
agencies that administer export and reexport controls.
    (b) Technology and software that:
    (1) Are already publicly available or will be made publicly 
available as described in Sec. 732.7 of this part;
    (2) Arise during or result from fundamental research, as described 
in Sec. 732.8 of this part;
    (3) Are educational, as described in Sec. 732.9 of this part;
    (4) Are included in certain patent applications, as described in 
Sec. 732.10 of this part; or
    (5) Are classified by being assigned a security classification 
(e.g., ``top secret,'' ``secret,'' or ``confidential'') by an officer 
or agency of the U.S. government.<SUP>1

    \1\The export of classified technology and software is 
controlled by the Center for Defense Trade of the U.S. Department of 
State or the U.S. Department of Energy.
---------------------------------------------------------------------------


Sec. 732.4  Foreign-made products subject to the EAR.

    (a) Items subject to the EAR. The following are included among the 
items that are subject to the EAR:
    (1) U.S.-origin parts, components, materials, or other commodities 
incorporated abroad into foreign-made products, in quantities exceeding 
de minimis levels as set forth in paragraph (b) of this section;
    (2) Certain foreign-made direct products of U.S. origin technology 
or software, as set forth in Sec. 734.2(b)(3) of this subchapter. The 
term ``direct product'' means the immediate product (including 
processes and services) produced directly by the use of technology or 
software; and
    (3) Certain commodities produced by any plant or major component of 
a plant that is a direct product of U.S. origin technology or software, 
as set forth in Sec. 734.2(b)(3) of this subchapter.
    (b) De minimis U.S. content. (1) There is no de minimis level for 
the export from a foreign country of a foreign-made supercomputer 
containing U.S. origin parts, components, or materials that are 
controlled to the new destination.
    (2) Except for supercomputers, for embargoed countries at part 746 
of this subchapter and for countries named as terrorist-supporting 
countries at part 744 of this subchapter the following are not subject 
to the EAR:
    (i) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 10% or less of the total value of the 
foreign-made commodity;
    (ii) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 10% or less of the total value of the 
foreign-made software; or
    (iii) Reexports of foreign technology commingled with or drawn from 
controlled U.S. origin technology valued at 10% or less of the total 
value of the foreign technology.
    (3) Except for supercomputers, for all other countries, the 
following are not subject to the EAR:
    (i) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 25% or less of the total value of the 
foreign-made commodity;
    (ii) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 25% or less of the total value of the 
foreign-made software; or
    (iii) Reexports of foreign technology commingled with or drawn from 
controlled U.S.-origin technology valued at 25% or less of the total 
value of the foreign technology.
    (4) For purposes of determining de minimis levels, technology and 
source code used to design or produce foreign-made commodities or 
software are not considered to be incorporated into such foreign-made 
commodities or software. Commodities subject only to short supply 
controls are not included in calculating U.S. content.
    (5) You are responsible for making the necessary calculations to 
determine whether the de minimis provisions apply to your situation. 
See Supplement No. 3 to part 742 for guidance regarding calculation of 
U.S. controlled content.


Sec. 732.5  Activities of U.S. and foreign persons subject to the EAR.

    The following kinds of activities are subject to the EAR:
    (a) Certain activities of U.S. persons related to the proliferation 
of chemical or biological weapons or of missile technology as set forth 
in Sec. 744.6 of this subchapter.
    (b) Activities of U.S. or foreign persons prohibited by any order 
issued under the EAR, including a Denial Order issued pursuant to part 
766 of this subchapter.


Sec. 732.6  Assistance available from BXA for determining licensing and 
other requirements.

    (a) If you are not sure whether a commodity, technology, or 
software, or activity is subject to the EAR, or is subject to licensing 
or other requirements under the EAR, you may ask BXA for an advisory 
opinion, classification, or a determination whether a particular item 
or activity is subject to the EAR. In many instances, including those 
where the item is specially designed, developed, configured, adapted, 
or modified for military application, the item may fall under the 
licensing jurisdiction of the Department of State and may be subject to 
the controls of the International Traffic in Arms Regulations (22 CFR 
parts 120 to 130) (ITAR). In order to determine if the Department of 
State has licensing jurisdiction over an item, you should submit a 
request for a commodity jurisdiction determination to the Department of 
State, Office of Defense Trade Controls. Exporters should note that in 
a very limited number of cases, the categories of items may be subject 
to both the ITAR and the EAR. The relevant departments are working to 
eliminate any unnecessary overlaps that may exist.
    (b) As the agency responsible for administering the EAR, BXA is the 
only agency that has the responsibility for determining whether an item 
or activity is subject to the EAR and, if so, what licensing or other 
requirements apply under the EAR. Such a determination only affects EAR 
requirements, and does not affect the applicability of any other 
regulatory programs.
    (c) If you need help in determining BXA licensing or other 
requirements you may ask BXA for help by following the procedures set 
forth in Sec. 748.3 of this subchapter.


Sec. 732.7  Publicly available.

    (a) Information is made public and so becomes ``publicly 
available'' when it becomes generally accessible to the interested 
public in any form, including:
    (1) Publication in periodicals, books, print, electronic, or any 
other media available for general distribution to any member of the 
public or to a community of persons interested in the subject matter, 
such as those in a scientific or engineering discipline, either free or 
at a price that does not exceed the cost of reproduction and 
distribution (See Supplement No. 1 to part 732, Questions A(1) through 
A(6));
    (2) Ready availability at libraries open to the public or at 
university libraries (See Supplement No. 1 to part 732, Question A(6)); 
[[Page 25280]] 
    (3) Patents and open (published) patent applications available at 
any patent office; and
    (4) Release at an open conference, meeting, seminar, trade show, or 
other open gathering.
    (i) A conference or gathering is ``open'' if all technically 
qualified members of the public are eligible to attend and attendees 
are permitted to take notes or otherwise make a personal record (not 
necessarily a recording) of the proceedings and presentations.
    (ii) All technically qualified members of the public may be 
considered eligible to attend a conference or other gathering 
notwithstanding:
    (A) A registration fee reasonably related to cost and reflecting an 
intention that all interested and technically qualified persons be able 
to attend, or a limitation on actual attendance, as long as attendees 
either are the first who have applied or are selected on the basis of 
relevant scientific or technical competence, experience, or 
responsibility (See Supplement No. 1 to Part 732, Questions B(1) 
through B(6)).
    (B) Reserved.
    (iii) ``Publicly available'' includes submission of papers to 
domestic or foreign editors or reviewers of journals, or to organizers 
of open conferences or other open gatherings, with the understanding 
that the papers will be made publicly available if favorably received. 
(See Supplement No. 1 to Part 732, Questions A(1) and A(3)).
    (b) Reserved.


Sec. 732.8  Information resulting from fundamental research.

    (a) Fundamental research. Paragraphs (b) through (d) of this 
section and Sec. 732.11 of this part provide specific rules that will 
be used to determine whether research in particular institutional 
contexts qualifies as ``fundamental research''. The intent behind those 
provisions is to identify as ``fundamental research'' basic and applied 
research in science and engineering, where the resulting information is 
ordinarily published and shared broadly within the scientific 
community. Such research can be distinguished from proprietary research 
and from industrial development, design, production, and product 
utilization, the results of which ordinarily are restricted for 
proprietary reasons or specific national security reasons as defined in 
Sec. 732.10 of this part. (See Supplement No. 1 to part 732, Question 
D(8)).
    (b) University based research. (1) Research conducted by 
scientists, engineers, or students at a university normally will be 
considered fundamental research, as described in this paragraph (b). 
(``University'' means any accredited institution of higher education 
located in the United States.)
    (2) Prepublication review by a sponsor of university research 
solely to insure that the publication would not inadvertently divulge 
proprietary information that the sponsor has furnished to the 
researchers does not change the status of the research as fundamental 
research. However, release of information from a corporate sponsor to 
university researches where the research results are subject to 
prepublication review, is subject to the EAR. (See Supplement No. 1 to 
part 732, Questions D(7), D(9), and D(10)).
    (3) Prepublication review by a sponsor of university research 
solely to ensure that publication would not compromise patent rights 
does not change the status of fundamental research, so long as the 
review causes no more than a temporary delay in publication of the 
research results.
    (4) However, the initial transfer of information from an industry 
sponsor to university researchers is subject to the EAR where the 
parties have agreed that the sponsor may withhold from publication some 
or all of the information so provided. (See Supplement No. 1 to this 
part, Question D(2)).
    (5) University based research is not considered ``fundamental 
research'' if the university or its researchers accept (at the request, 
for example, of an industrial sponsor) other restrictions on 
publication of scientific and technical information resulting from the 
project or activity. Scientific and technical information resulting 
from the research will nonetheless qualify as fundamental research once 
all such restrictions have expired or have been removed. (See 
Supplement No. 1 to part 732, Questions D(7) and D(9)).
    (6) The provisions of Sec. 732.11 of this part will apply if a 
university or its researchers accept specific national security 
controls (as defined in Sec. 732.11 of this part) on a research project 
or activity sponsored by the U.S. Government. (See Supplement No. 1 to 
part 732, Questions E(1) and E(2)).
    (c) Research based at Federal agencies or FFRDCs. Research 
conducted by scientists or engineers working for a Federal agency or a 
Federally Funded Research and Development Center (FFRDC) may be 
designated as ``fundamental research'' within any appropriate system 
devised by the agency or the FFRDC to control the release of 
information by such scientists and engineers. (See Supplement No. 1 to 
part 732, Questions D(8) and D(11)).
    (d) Corporate research. (1) Research conducted by scientists or 
engineers working for a business entity will be considered 
``fundamental research'' at such time and to the extent that the 
researchers are free to make scientific and technical information 
resulting from the research publicly available without restriction or 
delay based on proprietary concerns or specific national security 
controls as defined in Sec. 732.11 of this part.
    (2) Prepublication review by the company solely to ensure that the 
publication would compromise no proprietary information provided by the 
company to the researchers is not considered to be a proprietary 
restriction under paragraph (d)(1) of this section. However, paragraph 
(d)(1) of this section does not authorize the release of information to 
university researchers where the research results are subject to 
prepublication review. (See Supplement No. 1 to part 732, Questions 
D(8), D(9), and D(10)).
    (3) Prepublication review by the company solely to ensure that 
prepublication would compromise no patent rights will not be considered 
a proprietary restriction for this purpose, so long as the review 
causes no more than a temporary delay in publication of the research 
results.
    (4) However, the initial transfer of information from a business 
entity to researchers is not authorized under the ``fundamental 
research'' provision where the parties have agreed that the business 
entity may withhold from publication some or all of the information so 
provided.
    (e) Research based elsewhere. Research conducted by scientists or 
engineers who are not working for any of the institutions described in 
paragraphs (b) through (d) of this section will be treated as corporate 
research, as described in paragraph (d) of this section. (See 
Supplement No. 1 to part 732, Question D(8)).


Sec. 732.9  Educational information.

    ``Educational information'' referred to in Sec. 732.3(b)(3) of this 
part is not subject to the EAR if it is released by instruction in 
catalog courses and associated teaching laboratories of academic 
institutions. Dissertation research is discussed in Sec. 732.8(b) of 
this part. (See Supplement No. 1 to part 732, Questions C(1) through 
C(6)).


Sec. 732.10  Patent applications.

    The information referred to in Sec. 732.3(b)(4) of this part is: 
[[Page 25281]] 
    (a) Information contained in a patent application prepared wholly 
from foreign-origin technical data where the application is being sent 
to the foreign inventor to be executed and returned to the United 
States for subsequent filing in the U.S. Patent and Trademark Office;
    (b) Information contained in a patent application, or an amendment, 
modification, supplement or division of an application, and authorized 
for filing in a foreign country in accordance with the regulations of 
the Patent and Trademark Office, 37 CFR part 5;<SUP>2 or

    \2\Regulations issued by the Patent and Trademark Office in 37 
CFR Part 5 provide for the export to a foreign country of 
unclassified technical data in the form of a patent application or 
an amendment, modification, or supplement thereto or division 
thereof.
---------------------------------------------------------------------------

    (3) Information contained in a patent application when sent to a 
foreign country before or within six months after the filing of a 
United States patent application for the purpose of obtaining the 
signature of an inventor who was in the United States when the 
invention was made or who is a co-inventor with a person residing in 
the United States.


Sec. 732.11  Government-sponsored research covered by contract 
controls.

    (a) If research is funded by the U.S. Government, and specific 
national security controls are agreed on to protect information 
resulting from the research, Sec. 732.3(b)(2) of this part will not 
apply to any export or reexport of such information in violation of 
such controls. However, any export or reexport of information resulting 
from the research that is consistent with the specific controls may 
nonetheless be made under this provision.
    (b) Examples of ``specific national security controls'' include 
requirements for prepublication review by the Government, with right to 
withhold permission for publication; restrictions on prepublication 
dissemination of information to non-U.S. citizens or other categories 
of persons; or restrictions on participation of non-U.S. citizens or 
other categories of persons in the research. A general reference to one 
or more export control laws or regulations or a general reminder that 
the Government retains the right to classify is not a ``specific 
national security control''. (See Supplement No. 1 to part 732, 
Questions E(1) and E(2).)


Sec. 732.12  Exports involving Canada.

    (a) Exports of items to Canada are subject to the EAR.
    (b) Recognizing the special relationship between the United States 
and Canada, the general policy under the EAR is to permit most 
shipments of items to Canada for consumption or use in that country 
without a license.
    (c) When the items leaving the United States will transit Canada or 
are intended for reexport from Canada to another foreign destination 
and such shipment would require a license if made directly from the 
United States to that destination, a license is required under the EAR. 
The licensing policy will be based on the policy applicable to a direct 
shipment from the United States to such other destination. Please see 
Sec. 758.1(d) of this subchapter for special documentation provisions 
that apply to exports from the United States that transit Canada.


Sec. 732.13  Exports from U.S. foreign trade zones.

    (a) Items exported from U.S. foreign trade zones are subject to the 
EAR.
    (b) EAR licensing requirements apply to items originating in the 
United States and located in a foreign trade zone, as well as foreign 
origin items that, as a result of processing, manufacturing, or 
assembly while in a U.S. foreign trade zone, have been so altered that 
they have either been substantially enhanced in value or have lost 
their original identity with respect to form.
    (c) Shipments of items of foreign origin that have not been altered 
as described in paragraph (b) of this section, for which no customs 
entry has been made and that enter a U.S. foreign trade zone may be 
exported from the foreign trade zone without a license, except the 
following:
    (1) Exports to Country Group D:1 and E:2 (see supplement No. 1 to 
part 740 of this subchapter), if a shipment of similar items of U.S. 
origin could not be made from the customs territory of the United 
States to such a destination without a license. Items of Canadian 
origin require a license only if the shipment of the items would 
require a license to virtually all destinations, including Country 
Group B, if exported directly from the United States.
    (2) Items shipped to the United States under International Import 
Certificates, Form BXA 645P/ATF-4522/DSP-53, in accordance with the 
procedure described in Supplement No. 4 to part 748 of this subchapter.
    (3) The export and reexport of any commodity listed in Part 754, 
Short Supply, as requiring a license if the commodity were exported 
from the custom territory of the United States.
    (d) Commodities of U.S. or foreign origin disposed of by the U.S. 
Government under a foreign excess property disposal program that enter 
a U.S. foreign trade zone without a customs entry require a license if 
the same shipment would require a license if the export were made 
directly from the customs territory of the United States.


Sec. 732.14  Intransit shipments through the United States.

    (a) Items moving intransit through the United States are subject to 
the EAR.
    (b) Items shipped on board a conveyance and passing through the 
United States in transit from one foreign country to another do not 
require a license under the EAR provided that:
    (1) While passing its transit through the United States, such items 
have not been unladen from the conveyance on which they entered; and
    (2) They are not originally manifested to the United States.
    (c) If you determine that an item moving intransit through the 
United States requires a license under the EAR, see Sec. 740.8 of this 
subchapter, Exception 6, Exports of Items Temporarily in the United 
States (TUS), for a description of specific exceptions to licensing 
requirements for intransit shipments.


Sec. 732.15  Shipments to territories, possessions, dependencies, or 
departments.

    (a) Shipments to Puerto Rico, the Mariana Islands and U.S. 
territories, dependencies, and possessions. The EAR do not require a 
license or other authorization for shipments from the United States to 
the Commonwealth of Puerto Rico, or the Commonwealth of the Northern 
Mariana Islands or any territory, dependency, or possession of the 
United States as listed in Schedules C & E, Classification of Country 
and Territory Designations for U.S. Export Statistics, issued by the 
Bureau of the Census.
    (b) Shipments to the territories, possessions, or departments of 
other destinations. There are a number of destinations that are not 
listed in the Commerce Country Chart contained in Supplement No. 1 to 
Part 738 of this subchapter, or in the Country Groups contained in 
Supplement No. 1 to part 740 of this subchapter. If your destination is 
not listed on the Commerce Country Chart or in the Country Groups and 
such destination is a territory, possession, or department of another 
country, the EAR accords your proposed destination the same licensing 
treatment as the country to which it is a territory, possession, or 
department. For example, if your destination is the Cayman Islands, a 
dependent territory of the United Kingdom, consult the United Kingdom 
on the Commerce Country Chart and in the Country Groups. 
[[Page 25282]] 


Sec. 732.16  Effect on foreign laws and regulations.

    Any person who complies with any of the license or other 
requirements of the EAR is not relieved of the responsibility of 
complying with applicable foreign laws and regulations. Conversely, any 
person who complies with the license or other requirements of a foreign 
law or regulation is not relieved of the responsibility of complying 
with U.S. laws and regulations, including the EAR.

Supplement No. 1--Questions and Answers--Technology and Software 
Subject to the EAR

    This Supplement No. 1 contains explanatory questions and answers 
relating to technology and software that is subject to the EAR. It 
is intended to give the public guidance in understanding how BXA 
interprets this part, but is only illustrative, not comprehensive. 
In addition, facts or circumstances that differ in any material way 
from those set forth in the questions or answers will be considered 
under the applicable provisions of the EAR.
    This Supplement is divided into nine sections according to topic 
as follows:
    Section A: Publication of technology [and software] and exports 
and reexports of technology that has been or will be published.
    Section B: Release of technology at conferences.
    Section C: Educational instruction.
    Section D: Research, correspondence, and informal scientific 
exchanges.
    Section E: Federal contract controls.
    Section F: Commercial consulting.
    Section G: Software.
    Section H: Availability in a public library.
    Section I: Miscellaneous.

Section A: Publication

    Question A(1): I plan to publish in a foreign journal a 
scientific paper describing the results of my research, which is in 
an area listed in the EAR as requiring a license to all countries 
except Canada. Do I need a license to send a copy to my publisher 
abroad?
    Answer: No. This export transaction is not subject to the EAR. 
The EAR do not cover technology that is already publicly available, 
as well as technology that is made public by the transaction in 
question. (Secs. 732.3 and 732.7 of this part) Your research results 
would be made public by the planned publication. You would not need 
a license.
    Question A(2): Would the answer differ depending on where I work 
or where I performed the research?
    Answer: No. Of course, the result would be different if your 
employer or another sponsor of your research imposed restrictions on 
its publication. (Sec. 732.8 of this part)
    Question (A)3: Would I need a license to send the paper to the 
editors of a foreign journal for review to determine whether it will 
be accepted for publication?
    Answer: No. This export transaction is not subject to the EAR 
because you are submitting the paper to the editors with the 
intention that the paper will be published if favorably received. 
(Sec. 732.7(d)(3) of this part)
    Question A(4): The research on which I will be reporting in my 
paper is supported by a grant from the Department of Energy (DOE). 
The grant requires prepublication clearance by DOE. Does that make 
any difference under the Export Administration Regulations?
    Answer: No, the transaction is not subject to the EAR. But if 
you published in violation of any Department of Energy controls you 
have accepted in the grant, you may be subject to appropriate 
administrative, civil, or criminal sanctions under other laws.
    Question A(5): We provide consulting services on the design, 
layout, and construction of integrated circuit plants and production 
lines. A major part of our business is the publication for sale to 
clients of detailed handbooks and reference manuals on key aspects 
on the design and manufacturing processes. A typical cost of 
publishing such a handbook and manual might be $500; the typical 
sales price is about $15,000. Is the publication and sale of such 
handbooks or manuals subject to the EAR?
    Answer: Yes. The price is above the cost of reproduction and 
distribution. (Sec. 732.7(a) of this part) Thus, you would need to 
obtain a license or qualify for a License Exception before you could 
export or reexport any of these handbooks or manuals.
    Question A(6): My Ph.D. thesis is on technology, listed in the 
EAR as requiring a license to all destination except Canada, which 
has never been published for general distribution. However, the 
thesis is available at the institution from which I took the degree. 
Do I need a license to send another copy to a colleague overseas?
    Answer: That may depend on where in the institution it is 
available. If it is not readily available in the university library 
(e.g., by filing in open stacks with a reference in the catalog), it 
is not ``publicly available'' and the export or reexport would be 
subject to the EAR on that ground. The export or reexport would not 
be subject to the EAR if your Ph.D. research qualified as 
``fundamental research'' under Sec. 732.8 of this Part. If not, 
however, you will need to obtain a license or qualify for a License 
Exception before you can send a copy out of the country.
    Question A(7): We sell electronically recorded information, 
including software and databases, at wholesale and retail. Our 
products are available by mail order to any member of the public, 
though intended for specialists in various fields. They are priced 
to maximize sales to persons in those fields. Do we need a license 
to sell our products to foreign customers?
    Answer: You would not need a license for otherwise controlled 
technology or software if the technology and software are made 
publicly available at a price that does not exceed the cost of 
production and distribution to the technical community. Even if 
priced at a higher level, the export or reexport of the technology 
or software source code in a library accessible to the public is not 
subject to the EAR. (Sec. 732.7(a) of this part)

Section B: Conferences

    Question B(1): I have been invited to give a paper at a 
prestigious international scientific conference on a subject listed 
as requiring a license under the EAR to all countries, except 
Canada. Scientists in the field are given an opportunity to submit 
applications to attend. Invitations are given to those judged to be 
the leading researchers in the field, and attendance is by 
invitation only. Attendees will be free to take notes, but not make 
electronic or verbatim recordings of the presentations or 
discussions. Some of the attendees will be foreigners. Do I need a 
license to give my paper?
    Answer: No. Release of information at an open conference and 
information that has been released at an open conference is not 
subject to the EAR. The conference you describe fits the definition 
of an open conference. (Sec. 732.7(d) of this part)
    Question B(2): Would it make any difference if there were a 
prohibition on making any notes or other personal record of what 
transpires at the conference?
    Answer: Yes. To qualify as an ``open'' conference, attendees 
must be permitted to take notes or otherwise make a personal record 
(although not necessarily a recording). If note taking or the making 
of personal records is altogether prohibited, the conference would 
not be considered ``open''.
    Question B(3): Would it make any difference if there were also a 
registration fee?
    Answer: That would depend on whether the fee is reasonably 
related to costs and reflects an intention that all interested and 
technically qualified persons should be able to attend. 
(Sec. 732.7(d)(2)(i) of this part).
    Question B(4): Would it make any difference if the conference 
were to take place in another country?
    Answer: No.
    Question B(5): Must I have a license to send the paper I propose 
to present at such a foreign conference to the conference organizer 
for review?
    Answer: No. A license is not required under the EAR to submit 
papers to foreign organizers of open conferences or other open 
gatherings with the intention that the papers will be delivered at 
the conference, and so made publicly available, if favorably 
received. The submission of the papers is not subject to the EAR. 
(Sec. 732.7(d)(3) of this part)
    Question B(6): Would the answers to any of the foregoing 
questions be different if my work were supported by the Federal 
Government?
    Answer: No. You may export and reexport the papers, even if the 
release of the paper violates any agreements you have made with your 
government sponsor. However, nothing in the EAR relieves you of 
responsibility for conforming to any controls you have agreed to in 
your Federal grant or contract.

Section C: Educational Instruction

    Question C(1): I teach a university graduate course on design 
and manufacture of very high-speed integrated circuitry. Many of the 
students are foreigners. Do I need a license to teach this course?
    Answer: No. Release of information by instruction in catalog 
courses and associated [[Page 25283]] teaching laboratories of 
academic institutions is not subject to the EAR. (Sec. 732.9 of this 
part)
    Question C(2): Would it make any difference if some of the 
students were from countries to which export licenses are required?
    Answer: No.
    Question C(3): Would it make any difference if I talk about 
recent and as yet unpublished results from my laboratory research?
    Answer: No.
    Question C(4): Even if that research is funded by the 
Government?
    Answer: Even then, but you would not be released from any 
separate obligations you have accepted in your grant or contract.
    Question C(5): Would it make any difference if I were teaching 
at a foreign university?
    Answer: No.
    Question C(6): We teach proprietary courses on design and 
manufacture of high-performance machine tools. Is the instruction in 
our classes subject to the EAR?
    Answer: Yes. That instruction would not qualify as ``release of 
educational information'' under Sec. 732.9 of this part because your 
proprietary business does not qualify as an ``academic institution'' 
within the meaning of Sec. 732.9 of this part. Conceivably, however, 
the instruction might qualify as ``release at an open * * * seminar, 
* * * or other open gathering'' under Sec. 732.7(d) of this part. 
The conditions for qualification of such a seminar or gathering as 
``open'', including a fee ``reasonably related to costs (of the 
conference, not of producing the data) and reflecting an intention 
that all interested and technically qualified persons be able to 
attend,'' would have to be satisfied.

Section D: Research, Correspondence, and Informal Scientific 
Exchanges

    Question D(1): Do I need a license in order for a foreign 
graduate student to work in my laboratory?
    Answer: Not if the research on which the foreign student is 
working qualifies as ``fundamental research'' under Sec. 732.8 of 
this part. In that case, the research is not subject to the EAR.
    Question D(2): Our company has entered into a cooperative 
research arrangement with a research group at a university. One of 
the researchers in that group is a PRC national. We would like to 
share some of our proprietary information with the university 
research group. We have no way of guaranteeing that this information 
will not get into the hands of the PRC scientist. Do we need to 
obtain a license to protect against that possibility?
    Answer: No. The EAR do not cover the disclosure of information 
to any scientists, engineers, or students at a U.S. university in 
the course of industry-university research collaboration under 
specific arrangements between the firm and the university, provided 
these arrangements do not permit the sponsor to withhold from 
publication any of the information that he provides to the 
researchers. However, if your company and the researchers have 
agreed to a prohibition on publication, then you must obtain a 
license or qualify for a License Exception before transferring the 
information to the university. It is important that you as the 
corporate sponsor and the university get together to discuss whether 
foreign nationals will have access to the information, so that you 
may obtain any necessary authorization prior to transferring the 
information to the research team.
    Question D(3): My university will host a prominent scientist 
from the PRC who is an expert on research in engineered ceramics and 
composite materials. Do I require a license before telling our 
visitor about my latest, as yet unpublished, research results in 
those fields?
    Answer: Probably not. If you performed your research at the 
university, and you were subject to no contract controls on release 
of the research, your research would qualify as ``fundamental 
research'' (Sec. 732.8(b) of this part). Information arising during 
or resulting from such research is not subject to the EAR 
(Sec. 732.3(b)(2) of this part).
    You should probably assume, however, that your visitor will be 
debriefed later about anything of potential military value he learns 
from you. If you are concerned that giving such information to him, 
even though permitted, could jeopardize U.S. security interests, the 
Commerce Department can put you in touch with appropriate Government 
scientists who can advise you. Write to Department of Commerce, 
Bureau of Export Administration, P.O. Box 273, Washington, DC 20044.
    Question D(4): Would it make any difference if I were proposing 
to talk with a PRC expert in China?
    Answer: No, if the information in question arose during or 
resulted from the same ``fundamental research.''
    Question D(5): Could I properly do some work with him in his 
research laboratory inside China?
    Answer: Application abroad of personal knowledge or technical 
experience acquired in the United States constitutes an export of 
that knowledge and experience, and such an export may be subject to 
the EAR. If any of the knowledge or experience you export in this 
way requires a license under the EAR, you must obtain such a license 
or qualify for a License Exception.
    Question D(6): I would like to correspond and share research 
results with an Iranian expert in my field, which deals with 
technology that requires a license to all destinations except 
Canada. Do I need a license to do so?
    Answer: Not as long as we are still talking about information 
that arose during or resulted from research that qualifies as 
``fundamental'' under the rules spelled out in Sec. 732.8 of this 
part.
    Question D(7): Suppose the research in question were funded by a 
corporate sponsor and I had agreed to prepublication review of any 
paper arising from the research?
    Answer: Whether your research would still qualify as 
``fundamental'' would depend on the nature and purpose of the 
prepublication review. If the review is intended solely to ensure 
that your publications will neither compromise patent rights nor 
inadvertently divulge proprietary information that the sponsor has 
furnished to you, the research could still qualify as 
``fundamental.'' But if the sponsor will consider as part of its 
prepublication review whether it wants to hold your new research 
results as trade secrets or otherwise proprietary information (even 
if your voluntary cooperation would be needed for it to do so), your 
research would no longer qualify as ``fundamental.'' As used in 
these regulations it is the actual and intended openness of research 
results that primarily determines whether the research counts as 
``fundamental'' and so is not subject to the EAR.
    Question D(8): In determining whether research is thus open and 
therefore counts as ``fundamental,'' does it matter where or in what 
sort of institution the research is performed?
    Answer: In principle, no. ``Fundamental research'' is performed 
in industry, Federal laboratories, or other types of institutions, 
as well as in universities. The regulations introduce some 
operational presumptions and procedures that can be used both by 
those subject to the regulations and by those who administer them to 
determine with some precision whether a particular research activity 
is covered. Recognizing that common and predictable norms operate in 
different types of institutions, the regulations use the 
institutional locus of the research as a starting point for these 
presumptions and procedures. Nonetheless, it remains the type of 
research, and particularly the intent and freedom to publish, that 
identifies ``fundamental research'', not the institutional locus. 
(Sec. 732.8 of this part)
    Question D(9): I am doing research on high-powered lasers in the 
central basic-research laboratory of an industrial corporation. I am 
required to submit the results of my research for prepublication 
review before I can publish them or otherwise make them public. I 
would like to compare research results with a scientific colleague 
from Vietnam and discuss the results of the research with her when 
she visits the United States. Do I need a license to do so?
    Answer: You probably do need a license (Sec. 732.8(d) of this 
part). However, if the only restriction on your publishing any of 
that information is a prepublication review solely to ensure that 
publication would compromise no patent rights or proprietary 
information provided by the company to the researcher your research 
may be considered ``fundamental research,'' in which case you may be 
able to share information because it is not subject to the EAR. Note 
that the information will be subject to the EAR if the 
prepublication review is intended to withhold the results of the 
research from publication.
    Question D(10): Suppose I have already cleared my company's 
review process and am free to publish all the information I intend 
to share with my colleague, though I have not yet published?
    Answer: If the clearance from your company means that you are 
free to make all the information publicly available without 
restriction or delay, the information is not subject to the EAR. 
(Sec. 732.8(d) of this part)
    Question D(11): I work as a researcher at a Government-owned, 
contractor-operated [[Page 25284]] research center. May I share the 
results of my unpublished research with foreign nationals without 
concern for export controls under the EAR?
    Answer: That is up to the sponsoring agency and the center's 
management. If your research is designated ``fundamental research'' 
within any appropriate system devised by them to control release of 
information by scientists and engineers at the center, it will be 
treated as such by the Commerce Department, and the research will 
not be subject to the EAR. Otherwise, you would need to obtain a 
license or qualify for a License Exception, except to publish or 
otherwise make the information public. (Sec. 732.8(c) of this part).

Section E: Federal Contract Controls

    Question E(1): In a contract for performance of research entered 
into with the Department of Defense (DOD), we have agreed to certain 
national security controls. DOD is to have ninety days to review any 
papers we proposed before they are published and must approve 
assignment of any foreign nationals to the project. The work in 
question would otherwise qualify as ``fundamental research'' section 
under Sec. 732.8 of this part. Is the information arising during or 
resulting from this sponsored research subject to the EAR?
    Answer: Under Sec. 732.11 of this part, any export or reexport 
of information resulting from government-sponsored research that is 
inconsistent with contract controls you have agreed to will not 
qualify as ``fundamental research'' and any such export or reexport 
would be subject to the EAR. Any such export or reexport that is 
consistent with the controls will continue to be eligible for export 
and reexport under the ``fundamental research'' rule set forth in 
Sec. 732.8 of this part. Thus, if you abide by the specific controls 
you have agreed to, you need not be concerned about violating the 
EAR. If you violate those controls and export or reexport 
information as ``fundamental research'' under Sec. 732.8 of this 
part, you may subject yourself to the sanctions provided for under 
the EAR, including criminal sanctions, in addition to administrative 
and civil penalties for breach of contract under other law.
    Question E(2): Do the Export Administration Regulations restrict 
my ability to publish the results of my research?
    Answer: The Export Administration Regulations are not the means 
for enforcing the national security controls you have agreed to. If 
such a publication violates the contract, you would be subject to 
administrative, civil, and possible criminal penalties under other 
law.

Section F: Commercial Consulting

    Question F(1): I am a professor at a U.S. university, with 
expertise in design and creation of submicron devices. I have been 
asked to be a consultant for a ``third-world'' company that wishes 
to manufacture such devices. Do I need a license to do so?
    Answer: Quite possibly you do. Application abroad of personal 
knowledge or technical experience acquired in the United States 
constitutes an export of that knowledge and experience that is 
subject to the Export Administration Regulations. If any part of the 
knowledge or experience your export or reexport deals with 
technology that requires a license under the EAR, you will need to 
obtain a license or qualify for a License Exception.

Section G: Software\1\

    Question G(1): Is the export or reexport of software in machine 
readable code subject to the EAR when the source code for such 
software is publicly available?

    \1\Exporters should note that these provisions do not apply to 
software controlled under the International Traffic in Arms 
Regulations (e.g., certain encryption software).
---------------------------------------------------------------------------

    Answer: If the source code of a software program is publicly 
available, then the machine readable code compiled from the source 
code is software that is publicly available and therefore not 
subject to the EAR.
    Question G(2): Is the export or reexport of software sold at a 
price that does not exceed the cost of reproduction and distribution 
subject to the EAR?
    Answer: Software in machine readable code is publicly available 
if it is available to a community at a price that does not exceed 
the cost of reproduction and distribution. Such reproduction and 
distribution costs may include variable and fixed allocations of 
overhead and normal profit for the reproduction and distribution 
functions either in your company or in a third party distribution 
system. In your company, such costs may not include recovery for 
development, design, or acquisition. In this case, the provider of 
the software does not receive a fee for the inherent value of the 
software.
    Question G(3): Is the export or reexport of software subject to 
the EAR if it is sold at a price BXA concludes in a classification 
letter to be sufficiently low so as not to subject it to the EAR?
    Answer: In response to classification requests, BXA may choose 
to classify certain software as not subject to the EAR even though 
it is sold at a price above the costs of reproduction and 
distribution as long as the price is nonetheless sufficiently low to 
qualify for such a classification in the judgment of BXA.

Section H: Available in a Public Library

    Question H(1): Is the export or reexport of information subject 
to the EAR if it is available in a library and sold through an 
electronic or print service?
    Answer: Electronic and print services for the distribution of 
information may be relatively expensive in the marketplace because 
of the value vendors add in retrieving and organizing information in 
a useful way. If such information is also available in a library--
itself accessible to the public--or has been published in any way, 
that information is ``publicly available'' for those reasons, and 
the information itself continues not to be subject to the EAR even 
though you access the information through an electronic or print 
service for which you or your employer pay a substantial fee.
    Question H(2): Is the export or reexport of information subject 
to the EAR if the information is available in an electronic form in 
a library at no charge to the library patron?
    Answer: Information available in an electronic form at no charge 
to the library patron in a library accessible to the public is 
information publicly available even though the library pays a 
substantial subscription fee for the electronic retrieval service.
    Question H(3): Is the export or reexport of information subject 
to the EAR if the information is available in a library and sold for 
more than the cost of reproduction and distribution?
    Answer: Information from books, magazines, dissertations, 
papers, electronic data bases, and other information available in a 
library that is accessible to the public is not subject to the EAR. 
This is true even if you purchase such a book at more than the cost 
of reproduction and distribution. In other words, such information 
is ``publicly available'' even though the author makes a profit on 
your particular purchase for the inherent value of the information.

Section I: Miscellaneous

    Question I(1): The manufacturing plant that I work at is 
planning to begin admitting groups of the general public to tour the 
plant facilities. We are concerned that a license might be required 
if the tour groups include foreign nationals. Would such a tour 
constitute an export? If so, is the export subject to the EAR?
    Answer: The EAR define exports and reexports of technology to 
include release through visual inspection by foreign nationals of 
U.S.-origin equipment and facilities. Such an export or reexport 
qualifies under the ``publicly available'' provision and would not 
be subject to the EAR so long as the tour is truly open to all 
members of the public, including your competitors, and you do not 
charge a fee that is not reasonably related to the cost of 
conducting the tours. Otherwise, you will have to obtain a license, 
or qualify for a License Exception, prior to permitting foreign 
nationals to tour your facilities. (Sec. 732.7 of this part).
    Question I(2): Is the export or reexport of information subject 
to the EAR if the information is not in a library or published, but 
sold at a price that does not exceed the cost of reproduction and 
distribution?
    Answer: Information that is not in a library accessible to the 
public and that has not been published in any way, may nonetheless 
become ``publicly available'' if you make it both available to a 
community of persons and if you sell it at no more than the cost of 
reproduction and distribution. Such reproduction and distribution 
costs may include variable and fixed cost allocations of overhead 
and normal profit for the reproduction and distribution functions 
either in your company or in a third party distribution system. In 
your company, such costs may not include recovery for development, 
design, or acquisition costs of the technology or software. The 
reason for this conclusion is that the provider of the information 
receives nothing for the inherent value of the information.
    Question I(3): Is the export or reexport of information 
contributed to an electronic bulletin board subject to the EAR? 
[[Page 25285]] 
    Answer: (1) Assume each of the following:
    (i) Information is uploaded to an electronic bulletin board by a 
person that is the owner or originator of the information;
    (ii) That person does not charge a fee to the bulletin board 
administrator or the subscribers of the bulletin board; and
    (iii) The bulletin board is available for subscription to any 
subscriber in a given community regardless of the cost of 
subscription.
    (2) Such information is ``publicly available'' and therefore not 
subject to the EAR even if it is not elsewhere published and is not 
in a library. The reason for this conclusion is that the bulletin 
board subscription charges or line charges are for distribution 
exclusively, and the provider of the information receives nothing 
for the inherent value of the information.
    Question I(4): Is the export or reexport of patented information 
fully disclosed on the public record subject to the EAR?
    Answer: Information to the extent it is disclosed on the patent 
record open to the public is not subject to the EAR even though you 
may use such information only after paying a fee in excess of the 
costs of reproduction and distribution. In this case the seller does 
receive a fee for the inherent value of the technical data; however, 
the export or reexport of the information is nonetheless not subject 
to the EAR because any person can obtain the technology from the 
public record and further disclose or publish the information. For 
that reason, it is impossible to impose export controls that deny 
access to the information.

Supplement No. 2 to Part 732--Other Departments and Agencies With 
Foreign Policy and National Security Based Controls

    (a) Department of State. Regulations administered by the Office 
of Defense Trade Controls within the Center for Defense Trade, U.S. 
Department of State, govern the export and reexport of defense 
articles and defense services on the U.S. Munitions List included in 
the International Traffic in Arms Regulations (ITAR) (22 CFR part 
121). These regulations are issued under the authority of section 38 
of the Arms Export Control Act (22 U.S.C. 2778).
    (b) Treasury Department, Office of Foreign Assets Control 
(OFAC). Regulations administered by OFAC implement broad controls 
and embargoes transactions with certain foreign countries, which 
include controls on exports and reexports, as appropriate to such 
countries (31 CFR part 500). These regulations are issued under a 
grandfather provision in the Trading With the Enemy Act for Cuba and 
North Korea (50 U.S.C. App. Section 1 et seq.), and under the 
International Emergency Economic Powers Act for other countries (50 
U.S.C. Section 1701, et seq.)
    (c) U.S. Nuclear Regulatory Commission (NRC). Regulations 
administered by NRC control the export and reexport of commodities 
related to nuclear reactor vessels (10 CFR Part 110). These 
regulations are issued under the authority of the Atomic Energy Act 
of 1954, as amended (42 U.S.C. Part 2011 et seq.).
    (d) Department of Energy (DOE). Regulations administered by DOE 
control the export and reexport of technology related to the 
production of special nuclear materials (10 CFR Part 810). These 
regulations are issued under the authority of the Atomic Energy Act 
of 1954, as amended (42 U.S.C. Part 2011 et seq.).
    (e) Patent and Trademark Office (PTO). Regulations administered 
by PTO provide for the export to a foreign country of unclassified 
technology in the form of a patent application or an amendment, 
modification, or supplement thereto or division thereof (37 CFR Part 
5). BXA has delegated authority under the Export Administration Act 
to the PTO to approve exports and reexports of such technology which 
is subject to the EAR. Exports and reexports of such technology not 
approved under PTO regulations must comply with the EAR.

Supplement No. 3 to Part 732--Calculation of Values for De Minimis 
Rules

    Use the following guidelines in determining values for 
establishing exemptions or for submission of a request for 
authorization:
    (a) U.S. content value.
    (1) U.S. content value is the delivered cost to the foreign 
manufacturer of the U.S. origin parts, components, or materials. 
(When affiliated firms have special arrangements that result in 
lower than normal pricing, the cost should reflect ``fair market'' 
prices that would normally be charged to similar, unaffiliated 
customers.)
    (2) In calculating the U.S. content value, do not include parts, 
components, or materials that could be exported from the United 
States to the new country of destination without a license or 
License Exception GBS.
    (b) The foreign-made product value is the normal selling price 
f.o.b. factory (excluding value added taxes or excise taxes).

PART 734--GENERAL PROHIBITIONS

Sec.
734.1  Introduction.
734.2  General prohibitions and determination of applicability.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7429; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C 466(c); E.O. 12924.


Sec. 734.1  Introduction.

    A person may undertake transactions subject to the EAR without a 
license or other authorization, unless the regulations affirmatively 
state such a requirement. As such, if an export, reexport, or activity 
is subject to the EAR, the general prohibitions contained in part 734 
and the License Exceptions set forth in part 740 must be reviewed to 
determine if a license is necessary. In the case of all exports from 
the United States, you must document your export as described in part 
762 of this subchapter regarding recordkeeping and clear your export 
through the U.S. Customs Service as described in part 758 of this 
subchapter regarding export clearance requirements.
    (a) In this part 734 we tell you:
    (1) The facts that make your proposed export, reexport, or conduct 
subject to these general prohibitions, and
    (2) The ten general prohibitions.
    (b) Your obligations under the ten general prohibitions and under 
the EAR depend in large part upon five types of information and facts 
or information described in Sec. 734.2(a) of this part and upon the 
general prohibitions described in Sec. 734.2(b) of this part. Note that 
the ten general prohibitions contain cross-references to other parts of 
this subchapter that further define the breadth of the general 
prohibitions, and, for that reason, part 734 is not freestanding. In 
part 736, we provide certain steps you must follow in proper order to 
understand the general prohibitions and their relationship to other 
parts of this subchapter.
    (c) If you violate any of these ten general prohibitions, or engage 
in other conduct contrary to the Export Administration Act, the EAR, or 
any order, license, License Exception, or authorization issued 
thereunder, as described in part 764 of this subchapter regarding 
enforcement, you will be subject to any of the sanctions described in 
that part.


Sec. 734.2  General prohibitions and determination of applicability.

    (a) Information or facts that determine the applicability of the 
general prohibitions. The following five types of facts determine your 
obligations under the ten general prohibitions and the EAR generally:
    (1) Destination. The country of ultimate destination for an export 
or reexport (see parts 738 and 774 of this subchapter concerning the 
country chart and the Commerce Control List);
    (2) End-user. The ultimate end-user (see General Prohibition Four 
(paragraph (b)(4) of this section) and parts 744 and 764 of this 
subchapter for a reference to the list of persons you may not deal 
with);
    (3) End-use. The ultimate end-use (see General Prohibition Five 
(paragraph (b)(5) of this section) and part 744 of this subchapter for 
general end-use restrictions);
    (4) Classification of the item. The classification of the item on 
the Commerce Control List (see part 774 of this subchapter); and
    (5) Conduct. Conduct such as contracting, financing, and freight 
forwarding in support of a proliferation [[Page 25286]] project as 
described in part 744 of this subchapter.
    (b) General prohibitions. The following ten general prohibitions 
proscribe certain exports, reexports, and other conduct, subject to the 
scope of the EAR, you may not engage in unless you either have a 
license from the Bureau of Export Administration (BXA) or qualify under 
part 740 of this subchapter for a License Exception from each 
applicable general prohibition below. The License Exceptions at part 
740 of this subchapter apply only to General Prohibitions One (Exports 
and Reexports in the Form Received), Two (Parts and Components 
Reexports), and Three (Foreign Produced Direct Product Reexports); 
however, selected License Exceptions are specifically referenced and 
authorized in part 746 of this subchapter concerning embargo 
destinations and other special destinations.
    (1) General Prohibition One--Export and reexport controlled items 
to listed countries (Exports and Reexports in the Form Received). You 
may not, without a license or License Exception, export or reexport any 
item subject to the EAR to another country if each of the following is 
true:
    (i) The item is controlled for a reason indicated in the applicable 
Export Control Classification Number (ECCN).
    (ii) Export to the country of destination requires a license for 
the control reason as indicated on the Country Chart at part 738 of 
this subchapter. (The scope of this prohibition is determined by the 
correct classification of your item and the ultimate destination as 
that combination is reflected on the Country Chart.)\1\

    \1\The following export and reexport prohibitions are not 
described on the Country Chart. The scope of this prohibition for 
super computers and certain listening devices, and the country scope 
for such controls is defined in the relevant ECCN. The prohibition 
on exports and reexports and the related country scope for short 
supply controls are in part 574 and relevant ECCNs. The prohibition 
on exports concerning certain UN sanctions and other embargoes and 
the related country scope of those controls are contained in part 
746 and General Prohibition Six (paragraph (b)(6) of this section).
---------------------------------------------------------------------------

    (iii) Each License Exception described at part 740 of this 
subchapter supersedes General Prohibition One if all terms and 
conditions of a given License Exception are met by the exporter or 
reexporter.
    (2) General Prohibition Two--Reexport and export from abroad 
foreign-made items incorporating more than a de minimis amount of 
controlled U.S. content (Parts and Components Reexports). (i) You may 
not, without a license or License Exception, export, reexport or export 
from abroad any foreign-made commodity, software, or technology 
incorporating U.S.-origin commodities, software, or technology 
respectively that is controlled to the country of ultimate destination 
if the foreign-made item meets all three of the following conditions:
    (A) It incorporates more than the de minimis amount of controlled 
U.S. content, as defined in Sec. 732.4 of this subchapter concerning 
the scope of the EAR;
    (B) It is controlled for a reason indicated in the applicable ECCN; 
and
    (C) Its export to the country of destination requires a license for 
that control reason as indicated on the Country Chart. (The scope of 
this prohibition is determined by the correct classification of your 
foreign-made item and the ultimate destination, as that combination is 
reflected on the country chart.)
    (ii) Each License Exception described at part 740 of this 
subchapter supersedes General Prohibition One if all terms and 
conditions of a given License Exception are met by the exporter or 
reexporter.
    (3) General Prohibition Three--Reexport and export from abroad the 
foreign-produced direct product of U.S. technology and software 
(Foreign Produced Direct Product Reexports).
    (i) Country scope of prohibition. You may not export, reexport, or 
export from abroad items subject to the scope of this General 
Prohibition Three to Cuba, North Korea, Libya, or a destination in 
Country Group D:1 (See Supplement No. 1 to part 740 of this 
subchapter).
    (ii) Product scope of foreign-made items subject to prohibition. 
(A) Foreign-made items are subject to this General Prohibition 3 if 
they meet both of the following conditions:
    (1) They are the direct product of technology or software that 
requires a written assurance as a supporting document for a license or 
as a precondition for the use of License Exception TSR at Sec. 740.19 
of this subchapter, and
    (2) They are subject to national security controls as designated on 
the applicable ECCN of the Commerce Control List at part 774 of this 
subchapter.
    (B) Foreign-made items are also subject to this General Prohibition 
3 if they are the direct product of a complete plant or any major 
component of a plant if both of the following conditions are met:
    (1) Such plant or component is the direct product of technology 
that requires a written assurance as a supporting document for a 
license or as a precondition for the use of License Exception TSR at 
Sec. 740.19 of this subchapter, and
    (2) Such foreign-made direct products of the plant or component are 
subject to national security controls as designated on the applicable 
ECCN of the Commerce Control List at part 774 of this subchapter.
    (iii) License exceptions. Each License Exception described at part 
740 of this subchapter supersedes this General Prohibition Three if all 
terms and conditions of a given exception are met by the exporter or 
reexporter.
    (4) General Prohibition Four--Engage in actions prohibited by a 
denial order. (i) You may not take any action that is prohibited by a 
denial order issued under part 766 of this subchapter, Administrative 
Enforcement Proceedings. These orders prohibit many actions in addition 
to direct exports by the person denied export privileges, including 
some transfers within a single country either in the United States or 
abroad by other persons. You are responsible for ensuring that any of 
your transactions in which a person who is denied export privileges is 
involved do not violate the terms of the order. The names of persons 
denied export privileges are published in the Federal Register and are 
also included on the Denied Persons List, which is referenced in 
Supplement No. 2 to part 764 of this subchapter, Enforcement. The terms 
of the standard denial order are set forth in Supplement No. 1 to part 
764. You should note that some denial orders differ from the standard 
denial order. BXA may, on an exceptional basis, authorize activity 
otherwise prohibited by a denial order. See Sec. 764.3(a)(3) of this 
subchapter.
    (ii) There are no License Exceptions described in part 740 of this 
subchapter that authorize conduct prohibited by this General 
Prohibition Four.
    (5) General Prohibition Five--Export or reexport to prohibited end-
users or end-uses (End Use). You may not, without a license, export or 
reexport any item subject to the EAR to an end-user of end-use that is 
prohibited by part 744 of this subchapter.
    (6) General Prohibition Six--Export or reexport to embargoed 
destinations (Embargo). (i) You may not, without a license or License 
Exception authorized under part 746, export or reexport any item 
subject to the EAR to a country that is embargoed by the United States 
or otherwise made subject to controls as both are described at part 756 
of this subchapter.
    (ii) License Exceptions to this General Prohibition Six are 
described at part 746 of this subchapter on Embargo Destinations and 
Special Destinations [[Page 25287]] and unless a License Exception is 
authorized in part 746 of this subchapter the License Exceptions at 
part 740 of this subchapter are not available to overcome this general 
prohibition.
    (7) General Prohibition Seven--Support Proliferation Activities 
(U.S. Person Proliferation Activity). If you are a U.S. Person as that 
term is defined at Sec. 744.6 of this subchapter, you may not perform 
any financing, contracting, service, support, transportation, freight 
forwarding, or employment that you know will assist in certain 
proliferation activities described further at part 744 of this 
subchapter. There are no License Exceptions to this General Prohibition 
Seven in part 740 of this subchapter unless specifically authorized in 
that part.
    (8) General Prohibition Eight--In transit shipments and items to be 
unladen from vessels or aircraft (Intransit). (i) Unlading and shipping 
in transit. If an item to be exported or reexported would require a 
license to one of the countries listed in paragraph (b)(8)(ii) of this 
section, you may not ship that item on an aircraft or vessel that will 
be unladen in or that will move in transit through any of those 
countries en route to some other destination unless a license 
specifically authorizes such transshipment or unlading.
    (ii) Country scope. This General Prohibition Eight applies to 
Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, Cuba, 
Estonia, Georgia, Kazakhstan, Kyrgyzstan, Laos, Latvia, Lithuania, 
Mongolia, North Korea, Russia, Tajikistan, Turkmenistan, Ukraine, 
Uzbkeistan, Vietnam.
    (9) General Prohibition Nine--Violate any order, terms, and 
conditions (Orders, Terms, and Conditions). You may not violate the 
orders, terms, or conditions of a license or of a License Exception 
issued under or made a part of the EAR. There are no License Exceptions 
to this General Prohibition Nine in part 740 of this subchapter.
    (10) General Prohibition Ten--Proceed with transactions with 
knowledge that a violation has occurred or is about to occur (Knowledge 
Violation to Occur). You may not sell, transfer, export, reexport, 
finance, order, buy, remove, conceal, store, use, loan, dispose of, 
transfer, transport, forward, or otherwise service, in whole or in 
part, any item subject to the EAR and exported or to be exported with 
knowledge that a violation of the Export Administration Regulations, 
the Export Administration Act or any order, license, License Exception, 
or other authorization issued thereunder has occurred, is about to 
occur, or is intended to occur. Nor may you rely upon any license or 
exception after notice to you of the suspension or revocation of that 
license or exception. There are no License Exceptions to this General 
Prohibition Ten in part 740 of this subchapter.

PART 736--STEPS FOR DETERMINING LICENSE REQUIREMENTS

Sec.
736.1  STEP ONE: Publicly available technology and software.
736.2  STEP TWO: Ultimate country of destination and embargoed 
countries.
736.3  STEP THREE: Persons denied export privileges.
736.4  STEP FOUR: Prohibited end-uses and end-users.
736.5  STEP FIVE: Classification.
736.6  STEP SIX: Reason for control and the Country Chart.
736.7  STEP SEVEN: Foreign-made items incorporating U.S.- origin 
items and the de minimis rule.
736.8  STEP EIGHT: Foreign-produced direct product.
736.9  STEP NINE: Review the ``Know Your Customer'' guidance.
736.10  STEP TEN: Proliferation conduct of U.S. persons unrelated to 
exports and reexports.
736.11  STEP ELEVEN: Review of order, terms, and conditions.
736.12  STEP TWELVE: Intransit.
736.13  STEP THIRTEEN: Review of the remaining general prohibitions 
and License Exceptions.
736.14  STEP FOURTEEN: Miscellaneous duties.
736.15  Inapplicability of General Prohibitions.
736.16  Review of License Exceptions.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7429; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C 466(c); E.O. 12924.


Sec. 736.1  STEP ONE: Publicly available technology and software.

    Determine if your technology or software is publicly available as 
defined and explained at part 732 of this subchapter concerning the 
scope of the EAR.
    (a) If your technology or software is outside the scope of the EAR, 
then you may proceed with the export.
    (b) If your technology or software does not qualify as publicly 
available and is therefore within the scope of the EAR, you must 
consider all of the general prohibitions as described in part 734 of 
this subchapter.
    (c) Supplement No. 1 to part 732 of this subchapter contains 
several practical examples describing the scope of publicly available 
technology and software that is outside the scope of the EAR. The 
examples are illustrative, not comprehensive.


Sec. 736.2  STEP TWO: Country of ultimate destination and embargoed 
countries.

    Determine the country of ultimate destination. If your destination 
for any item is an embargoed country or other country listed in part 
746 of this subchapter, you may not make the export or reexport without 
a license unless you are exporting only publicly available technology 
or software or unless you qualify for a License Exception described in 
part 746 of this subchapter concerning embargoed destinations. You may 
not use a License Exception described at part 740 of this subchapter to 
overcome General Prohibition 6 (Sec. 734.2(b)(6) of this subchapter) 
unless it is specifically authorized in part 746 of this subchapter.


Sec. 736.3  STEP THREE: Persons denied export privileges.

    (a) Determine whether your transferee, ultimate end-user, any 
intermediate consignee, and any other party to a transaction is a 
person denied export privileges. (See part 764 of this subchapter). 
While it is not a violation of General Prohibition Four 
(Sec. 734.2(b)(4) of this subchapter) to fail to check the Denied 
Persons List prior to a transfer, it is nonetheless a per se violation 
of the regulations in this subchapter to deal with a denied person in 
any activity that is prohibited by the terms or conditions of a denial 
order.
    (b) There are no License Exceptions to General Prohibition Four 
(end-user) (Sec. 734.2(b)(4) of this subchapter) concerning certain 
end-users described in part 744 of this subchapter. The prohibitions 
concerning persons denied export privileges may be overcome only by a 
specific authorization from BXA, something that is rarely granted.


Sec. 736.4  STEP FOUR: Prohibited end-uses and end-users.

    (a) Review the end-uses and end-users prohibited under General 
Prohibitions Four (end-user) and Five (end-use) (Sec. 734.2(b)(4) and 
(b)(5) of this subchapter) as described at part 744 of this subchapter.
    (b) There are no License Exceptions to General Prohibitions Four 
(end-user) and Five (end-use) (Sec. 734.2(b)(4) and (b)(5) of this 
subchapter) described in part 740 of this subchapter.


Sec. 736.5  STEP FIVE: Classification.

    (a) You must classify your items, and you may do so on your own 
without the assistance of BXA. You are responsible for doing so 
correctly, and your failure to correctly classify your items does not 
[[Page 25288]] relieve you of the duty to obtain a license.
    (b) You have a right to request the applicable classification of 
your item from BXA, and BXA has a duty to provide that classification 
to you. For further information on how to obtain classification 
assistance from BXA, see part 748 of this subchapter for procedures and 
contact persons.


Sec. 736.6  STEP SIX: Reason for control and the country chart.

    (a) Reason for control within the Export Control Classification 
Number (ECCN). The applicable ECCN will indicate the reason or reasons 
for control for items within that ECCN. For example, ECCN 6A07 is 
controlled for both national security and missile technology reasons.
    (b) Reason for control within the country chart. Once you determine 
the reason for control from the proper ECCN, look up your country of 
destination on the country chart.
    (1) A check mark in the box or boxes for the relevant country and 
reason(s) for control indicates that a license is required for General 
Prohibitions One (Exports and Reexports in the Form Received), Two 
(Parts and Components Reexports), and Three (Foreign Produced Direct 
Product Reexports). (See Sec. 734.2(b)(1), (b)(2), and (b)(3) of this 
subchapter).
    (2) If one or more boxes have a check, a license is required unless 
you qualify for a License Exception under part 740 of this subchapter. 
If a box does not have a mark for your destination in one relevant 
reason for control, a license is not required under the CCL and the 
country chart unless another box is marked as requiring a license for 
another reason for control identified in the appropriate ECCN.
    (3) Additional controls may apply to your export. You must go on to 
steps Seven and Eight described in Secs. 736.7 and 736.8 of this Part 
to identify whether additional limits described in Sec. 734.2, 
paragraphs (b)(2) (foreign made items incorporating U.S.-origin parts 
and components) and (b)(3) (the foreign produced direct product of U.S. 
technology and software) of this subchapter apply.


Sec. 736.7  STEP SEVEN: Foreign-made items incorporating U.S.-origin 
items and the de minimis rule.

    If your foreign-made item is described in an entry on the CCL and 
the country chart requires a license to your export or reexport 
destination, you must determine whether the controlled U.S.-origin 
commodities, software, or technology incorporated into the foreign-made 
item exceeds the de minimis level applicable to the ultimate 
destination of the foreign-made item, as follows:
    (a) A 10% de-minimis level to embargoed and terrorist-supporting 
countries; or
    (b) A 25% de-minimis level to all other countries.
    (c) For guidance on how to calculate the U.S. controlled content, 
refer to part 732 of this subchapter.


Sec. 736.8  STEP EIGHT: Foreign produced direct product.

    (a) If your foreign produced item is described in an entry on the 
CCL and the country chart requires a license to your export or reexport 
destination for national security reasons, you must determine whether 
your item is subject to General Prohibition Three (Foreign Produced 
Direct Product Reexports) (Sec. 734.2(b)(3) of this subchapter). Your 
item is subject to this general prohibition if your transaction meets 
each of the following conditions:
    (1) Country scope of prohibition. Your export or reexport 
destination for the direct product is Cuba, North Korea, Libya, or a 
destination in Country Group D:1 (see Supplement No. 1 to part 740 of 
this subchapter) (reexports of foreign produced direct products 
exported to other destinations are not subject to General Prohibition 
Three);
    (2) Scope of technology or software used to create direct products 
subject to the prohibition. Technology or software that was used to 
create the foreign produced direct product, and such technology or 
software that was subject to the EAR and required a written assurance 
as a supporting document for a license or as a precondition for the use 
of License Exception TSR at Sec. 740.19 of this subchapter (reexports 
of foreign produced direct products created with other technology and 
software are not subject to General Prohibition Three); and
    (3) Scope of direct products subject to the prohibition. The 
foreign produced direct products are subject to national security 
controls as designated on the proper ECCN of the Commerce Control List 
at part 774 of this subchapter (reexports of foreign produced direct 
products not subject to national security controls are not subject to 
General Prohibition Three).
    (b) License Exceptions. Each License Exception described at part 
740 of this subchapter overcomes this General Prohibition Three 
(foreign produced direct product) if all terms and conditions of a 
given exception are met by the exporter or reexporter.


Sec. 736.9  STEP NINE: Review the ``Know Your Customer'' Guidance.

    License requirements under the regulations in this subchapter are 
determined solely by the classification, end-use, end-user, ultimate 
destination, and conduct of U.S. persons. Supplement No. 3 to part 744 
of this subchapter is intended to provide helpful guidance regarding 
the process for the evaluation of information about customers, end 
uses, and end users.


Sec. 736.10  STEP TEN: Proliferation conduct of U.S. persons unrelated 
to exports and reexports.

    (a) First, review the scope of activity prohibited by General 
Prohibition Seven (U.S. Person Proliferation Activity) 
(Sec. 734.2(b)(7) of this subchapter) as that activity is described in 
Sec. 744.6 of this subchapter. Keep in mind that such activity is not 
limited to exports and reexports and is not limited to items subject to 
General Prohibition One (exports and reexports in the form received), 
Two (parts and components reexports), and Three (foreign produced 
direct product reexports) (Sec. 734.2(b)(1), (b)(2), and (b)(3) of this 
subchapter). Moreover, such activity extends to services and dealing in 
wholly foreign-origin items in support of the specified proliferation 
activity.
    (b) Second, review the definition of ``U.S. Person.''


Sec. 736.11  STEP ELEVEN: Review of order, terms, and conditions.

    Review the orders, terms, and conditions applicable to your 
transaction. Terms and conditions are frequently contained in licenses. 
In addition, the ten general prohibitions (Sec. 734.2(b)(1) through 
(b)(10) of this subchapter) and the License Exceptions (part 740 of 
this subchapter) impose terms and conditions or limitations on your 
proposed transactions and use of License Exceptions. A given license or 
License Exception may not be used unless each relevant term or 
condition is met.


Sec. 736.12  STEP TWELVE: Intransit.

    Shippers and operators of vessels or aircraft should review General 
Prohibition Ten to determine the countries in which you may not unladen 
items or ship them intransit.


Sec. 736.13  STEP THIRTEEN: Review of the remaining general 
prohibitions and License Exceptions.

    After completion of Steps described in this part 736, and review of 
all ten general prohibitions, including cross-referenced regulations in 
this subchapter, you will know which, if any, of the ten general 
prohibitions in [[Page 25289]] part 734 of this subchapter apply to you 
and your contemplated transaction or activity.


Sec. 736.14  STEP FOURTEEN: Miscellaneous duties.

    Sections 736.1 through 736.13 of this part are useful in 
determining the license requirements that apply to you. Other portions 
of the EAR impose other duties and requirements. Some of them are:
    (a) Requirements relating use of a license in Sec. 758.2 of this 
subchapter.
    (b) Requirements pertaining to the preparation and use of a 
Shipper's Export Declaration in Sec. 758.3 of this subchapter.
    (c) Duties of carriers, forwarders, and exporters and others to 
take specific steps and prepare and deliver certain documents to assure 
that items subject to the regulations in this subchapter are delivered 
to the destination to which they are licensed or authorized by a 
License Exception or some other provision of the regulations in 
Secs. 758.4 through 785.6 of this subchapter.
    (d) Duty of Carriers to return or unload shipments at the direction 
of U.S. Government officials (see Sec. 758.8 of this subchapter).
    (e) Specific duties imposed on parties to special comprehensive 
licenses by part 752 of this subchapter.
    (f) Recordkeeping requirements imposed by Part 762 of this 
subchapter.
    (g) Part 764 requirements to disclose facts that may come to your 
attention after you file a license application or make other statement 
to the government concerning a transaction or proposed transaction that 
is subject to the EAR.
    (h) Certain duties imposed by Part 760 of this subchapter on 
parties who receive requests to take actions related to foreign 
boycotts and prohibits certain actions relating to those boycotts.


Sec. 736.15  Inapplicability of general prohibitions.

    If none of the ten general prohibitions described in part 734 of 
this subchapter apply to your export, reexport or conduct, you may 
proceed without a license and you need not and should not examine part 
740 of this subchapter for License Exceptions.


Sec. 736.16  Review of License Exceptions.

    If any of the ten general prohibitions described in part 734 of 
this subchapter apply, then you should determine whether there is a 
License Exception at part 740 of this subchapter from those general 
prohibitions or licensing requirements on the appropriate ECCN. In 
considering these License Exceptions you need only qualify for any one 
of them to rely upon that given License Exception for your transaction. 
Moreover, you may rely upon any License Exception that authorizes your 
transaction. Note especially that you should not assume that if you 
cannot qualify for one License Exception you are unable to export or 
reexport under another applicable License Exception. For example, 
assume you do not qualify for License Exception 13: Operating 
Technology and Software (OTD), and you plan to export maintenance 
manuals to the United Kingdom. The manuals are classified under ECCN 
4E94, and they are not subject to General Prohibition One (Exports and 
Reexports in the Form Received). Under these circumstances and if you 
are not subject to any of the nine other general prohibition, you may 
export the maintenance manuals even though your export or reexport does 
not qualify for any License Exception. This is so because your 
transaction is not subject to any of the ten general prohibitions.

PART 738--COMMERCE CONTROL LIST AND THE COUNTRY CHART

Sec.
738.1  Introduction.
738.2  Commerce Control List structure.
738.3  Commerce Country Chart structure.
738.4  Determining whether a license is required.

Supplement No. 1--Commerce Country Chart

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7429; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C 466(c); E.O. 12924.


Sec. 738.1  Introduction.

    (a) Commerce Control List scope. (1) The Bureau of Export 
Administration (BXA) maintains the Commerce Control List (CCL) within 
the Export Administration Regulations (EAR), which includes all items 
(i.e., commodities, software, and technology) subject to the export 
licensing authority of BXA. The CCL does not include those items 
exclusively controlled for export by another department or agency of 
the U.S. Government. In instances where agencies other than the 
Department of Commerce administer controls over related items, entries 
in the CCL contain a reference to these controls.
    (2) The CCL is contained in Supplement No. 1 to part 774 of this 
subchapter. Supplement No. 2 to part 774 of this subchapter contains 
the General Technology and Software Notes relevant to entries contained 
in the CCL, and Supplement No. 3 to part 774 of this subchapter 
contains definitions of terms used in the CCL.
    (b) Commerce Country Chart scope. BXA also maintains the Commerce 
Country Chart. The Commerce Country Chart, located in Supplement No. 1 
to part 738, contains licensing requirements based on destination and 
Reason for Control. In combination with the CCL, the Commerce Country 
Chart allows you to determine whether a license is required for all 
items on the CCL (with two exceptions identified in Sec. 738.3(a) of 
this part) to any country in the world.


Sec. 738.2  CCL structure.

    (a) Categories. The CCL is divided into 10 categories, numbered as 
follows:

1--Materials
2--Materials Processing
3--Electronics
4--Computers
5--Telecommunications and Information Security
6--Sensors
7--Avionics and Navigation
8--Marine Technology
9--Propulsion Systems and Transportation Equipment
0--Miscellaneous

    (b) Groups. Within each category, items are arranged by group. Each 
category contains the same five groups. Each Group is identified by the 
letters A through E, as follows:

A--Equipment, Assemblies and Components
B--Test, Inspection and Production Equipment
C--Materials
D--Software
E--Technology
    (c) Order of review. In order to classify your item against the 
CCL, you should begin with a review of the general characteristics of 
your item. This will usually guide you to the appropriate category on 
the CCL. Once the appropriate category is identified, you should match 
the particular characteristics and functions of your item to a specific 
ECCN. After you have identified the correct ECCN you should review the 
List of Items Controlled to determine within which subparagraph(s) your 
items are listed.
    (d) Entries--(1)(i) Composition of an entry. Within each group, 
individual items are identified by an Export Control Classification 
Number (ECCN). Each number consists of a set of digits and a letter. 
The first digit identifies the general category within which the entry 
falls (e.g., 3A01). The letter immediately following this first digit 
identifies which of the five groups the item is listed under (e.g., 
3A01). The final two digits [[Page 25290]] differentiate the individual 
entries and identify the type of controls that affect the item (e.g., 
3A01). The following list identifies the numbers associated with each 
Reason for Control:

01-19  National Security, Regional Stability, Supercomputers
20-39  Missile Technology, Regional Stability
40-59  Nuclear Non-proliferation
60-79  Chemical and Biological Weapons
80-99  Other Controls, including Crime Control, Anti-terrorism, UN 
Sanctions, Short Supply, etc.

    (ii) Since Reasons for Control are not mutually exclusive, numbers 
are assigned in order of precedence. As an example, if an item is 
controlled for both National Security and Missile Technology, the entry 
will have a number in the 01-19 range. If the item is controlled only 
for Missile Technology the number will fall within the 20-39 range.
    (2) Reading an ECCN. A brief description is provided next to each 
ECCN. Following this description is the actual entry containing 
``License Requirements'', ``License Alternatives'', and ``List of Items 
Controlled'' sections. A brief description of each section and its use 
follows:
    (i) ``License Requirements''. This section contains two columns 
entitled ``Controls'' and ``Country Chart''.
    (A) The ``Controls'' columns lists all applicable Reasons for 
Control, in order of restrictiveness, and to what extent each applies 
(e.g., to the entire entry or only to certain subparagraphs). Those 
requiring licenses for a larger number of countries and/or items are 
listed first. As you read across the columns the number of countries 
and/or items requiring a license declines. Since Reasons for Control 
are not mutually exclusive, items controlled within a particular ECCN 
may be controlled for more than one reason. The following is a list of 
all possible Reasons for Control:

AT  Anti-Terrorism
CB  Chemical & Biological Weapons
CC  Crime Control
MT  Missile Technology
NS  National Security
NP  Nuclear Non-proliferation
RS  Regional Stability
SC  Supercomputers
SS  Short Supply
UN  United Nations Sanctions

    (B) The ``Country Chart'' column identifies, for each applicable 
Reason for Control, a column name and number (e.g., CB Column 1). These 
column identifiers are used to direct you from the CCL to the 
appropriate column identifying the countries requiring a license.
    (ii) ``License Alternatives''. This section identifies ECCN-driven 
alternatives to applying for a license and a brief eligibility 
statement for each. The information in this section is provided to 
assist you in deciding which alternative related to your particular 
item and destination you should explore prior to submitting an 
application. This section should be consulted only AFTER you have 
determined a license is required based on an analysis of the entry and 
Country Chart. (See part 740 of this subchapter for a discussion of all 
License Exceptions, or part 752 of this subchapter for a discussion of 
the Special Comprehensive License.)
    (iii) ``List of Items Controlled''. This section contains a 
positive list of all items controlled by a particular entry and must be 
reviewed to determine whether your item is controlled by that entry. In 
instances where there are no items identified in the List of Items 
Controlled, the entry controls only those items specifically identified 
in the description next to the ECCN.
    (A) Units of measure. Most measurements used in the CCL are 
expressed in metric units with an inch-pound conversion where 
appropriate. In instances where other units are in general usage or 
specified by law, these will be used instead of metric. Generally, when 
there is a difference between the metric and inch-pound figures, the 
metric standard will be used for classification and licensing purposes. 
Exceptions will have the inch-pound unit first with a metric conversion 
(e.g., shotguns).
    (B) The abbreviation ``n.e.s.''. Entries within the CCL may contain 
the abbreviation ``n.e.s.'', meaning ``not elsewhere specified''. If an 
item you intend to export is controlled by an entry containing 
``n.e.s.'' in the description, you should not use that particular ECCN 
until you have determined that no other entry specifically controls 
that item.


Sec. 738.3  Commerce Country Chart structure.

    (a) Scope. The Commerce Country Chart (Country Chart) allows you to 
determine, based on the Reason(s) for Control attributed to your item, 
if you need a license to export your item to a particular destination. 
There are only two instances where the chart cannot be used for this 
purpose:
    (1) Items controlled for short supply reasons. Due to the unique 
nature of these controls, the ECCN will send you directly to part 754 
of this subchapter in order to determine whether a license is required 
for your product to a specific destination and the licensing policy 
relevant to these types of applications.
    (2) Items controlled by ECCN 5A80. A license is required for all 
destinations of items controlled under this ECCN. No License Exceptions 
apply; accordingly, if your item is controlled by 5A80 you should 
proceed directly to part 748 of this subchapter for license application 
instructions and Sec. 742.13 of this subchapter for information on the 
licensing policy relevant to these types of applications.
    (b) Countries. The first column of the Country Chart lists all 
countries in alphabetical order. There are a number of destinations 
that are not listed in the Country Chart contained in Supplement No. 1 
to part 738. If your destination is not listed on the Country Chart and 
such destination is a territory, possession, or department of a country 
included on the Country Chart, the EAR accords your destination the 
same licensing treatment as the country of which it is a territory, 
possession, or department. For example, if your destination is the 
Cayman Islands, a dependent territory of the United Kingdom, consult 
the United Kingdom on the Country Chart.
    (c) Columns. Stretching out to the right are horizontal headers 
identifying the various Reasons for Control. Under each Reason for 
Control header are diagonal column identifiers capping individual 
columns. Each column identifier consists of the two letter Reason for 
Control and a column number.(e.g., CB Column 1). The column identifiers 
correspond to those listed in the ``Country Chart'' column within the 
``License Requirements'' section of each ECCN.
    (d) Cells. The symbol ``X'' is used to denote licensing 
requirements on the Country Chart. If an ``X'' appears in a particular 
cell, transactions subject to that particular Reason for Control/
Destination combination require a license. There is a direct 
correlation between the number of ``X''s applicable to your transaction 
and the number of licensing reviews your application will undergo. Part 
742 of this subchapter describes the licensing policy associated with 
each column on the Country Chart.


Sec. 738.4  Determining whether a license is required.

    (a) Using the CCL and the Country Chart.
    (1) Overview. Once you have determined that your item is controlled 
by a specific ECCN, you must use information contained in the ``License 
Requirements'' section of that ECCN in combination with the Country 
Chart to decide whether a license is required. [[Page 25291]] 
    (2) License decision making process. The following decision making 
process must be followed in order to determine whether a license is 
required to export or reexport a particular item to a specific 
destination:
    (i) Examine the appropriate ECCN in the CCL. Is the item you intend 
to export or reexport controlled for a single Reason for Control?
    (A) If yes, identify the single Reason for Control and the relevant 
Country Chart column identifier (e.g., CB Column 1).
    (B) If no, identify the Country Chart column identifier for each 
applicable Reason for Control (e.g., NS Column 1, NP Column 1, etc.).
    (ii) With each of the applicable Country Chart Column Identifiers 
noted, turn to the Country Chart (Supplement No. 1 to this part 738). 
Locate the correct Country Chart column identifier on the horizontal 
heading, and determine whether an ``X'' is marked in the box next to 
the country in question.
    (A) If yes, a license application must be submitted unless a 
License Alternative applies. All applicable ECCN-driven ``License 
Alternatives'' are identified in each entry. If the brief eligibility 
statement contained in the ``License Exceptions'' line appears to cover 
your transaction you should consult part 740 of this subchapter to 
determine whether you can use a License Exception to effect shipment, 
rather than applying for a license. Other License Exceptions, not 
related to the CCL, may also apply to your transaction (See part 740 of 
this subchapter).
    (B) If no, a license is not required.
    (iii) In situations where more than one Reason for Control applies, 
repeat the step in paragraph (a)(2)(ii) for each Country Chart column 
identifier noted in the step in paragraph (a)(2)(i).
    (A) If an ``X'' is NOT found under any of the applicable columns, a 
license application is not required.
    (B) If an ``X'' is found under any of the applicable columns, and 
no License Exception applies, a license application must be submitted.

    Note: Though you may stop after determining a license is 
required based on the first Reason for Control, it is best to work 
through each applicable Reason for Control. A full analysis of every 
possible licensing requirement based on each applicable Reason for 
Control will provide you with the information necessary to determine 
the most advantageous License Exception available for your 
particular transaction and, if a license is required, ascertain the 
scope of review conducted by BXA.

    (b) Sample analysis using the CCL and Country Chart--(1) Scope. The 
following sample entry and related analysis is provided to illustrate 
the type of thought process you must complete in order to determine 
whether a license is required to export a particular item to a specific 
destination using the CCL in combination with the Country Chart.
    (2) Sample CCL entry.


2A00:  ECCN Description.

License Requirements

Reason for Control: NP

Control(s) and Country Chart
NP applies to entire entry--NP Column 1

License Alternatives

License Exceptions

LVS: $5,000
CSR: N/A
GBS: Yes
NSG: N/A
CIV: N/A
    Special Comprehensive License: (To be determined in the final 
rule).

List of Items Controlled

    Unit: Equipment in number; parts and accessories in $ value.
    (3) Sample analysis. After consulting the CCL I determine my item 
is classified under ECCN 2A00. I read that the entire entry is 
controlled for nuclear non-proliferation reasons, noting that the 
appropriate Country Chart column identifier is NP Column 1. Turning to 
the Country Chart, I locate my specific destination, India, and see 
that an ``X'' appears in the NP Column 1 box for India. I understand 
that a license is required, unless my transaction qualifies for a 
License Alternative (i.e., License Exception or Special Comprehensive 
License). Since I am not a Special Comprehensive License holder, I turn 
directly to the License Exceptions described in part 740 of this 
subchapter to determine whether a License Exception applies to my 
particular item/destination combination.

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BILLING CODE 3510-DT-C
[[Page 25299]]

PART 740--LICENSE EXCEPTIONS

Sec.
740.1  Introduction.
740.2  Restrictions on all License Exceptions.
740.3  Shipments of Limited Value (LVS).
740.4  COCOM Successor Regime (CSR).
740.5  Shipments to Group B Countries (GBS).
740.6  Nuclear Suppliers Group (NSG).
740.7  Civil end-users (CIV).
740.8  Temporary exports (TMP).
740.9  Exports of items temporarily in the United States (TUS).
740.10  Parts (PTS).
740.11  Servicing and Replacement (S&R).
740.12  Baggage (BAG).
740.13  Aircraft and Vessels (A&V).
740.14  International safeguards (SAF).
740.15  Governments (GOV).
740.16  Gift parcels (GFT).
740.17  Operating Technology and Software (OTS).
740.18  Sales technology (STS).
740.19  Software updates (SUD).
740.20  General Software Note (GSN).
740.21  Technology and Software under Restriction (TSR).
740.22  Additional Permissive Reexports (APR).

Supplement No. 1 to Part 740--Country Groups

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7429; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 740.1  Introduction.

    (a) Overview--(1) Scope. A ``License Exception'' is an 
authorization contained in this part that allows you to export or 
reexport, under stated conditions, items subject to the Export 
Administration Regulations (EAR) that otherwise require a license under 
one or more of the Export Control Classification Numbers (ECCN) in the 
Commerce Control List (CCL) in part 774 of this subchapter.
    (2) Steps. If your export or reexport is subject to the EAR and is 
subject to General Prohibitions One (Exports and Reexports in the Form 
Received), Two (Parts and Components Reexports), or Three (Foreign 
Produced Direct Product Reexports) in Sec. 732.2(b)(1), (b)(2), or 
(b)(3) of this subchapter, consider the steps listed in this paragraph 
(a)(2). If your export or reexport is subject to General Prohibitions 
4, 5, 7, 8, 9, or 10, there are no available License Exceptions for 
your export or reexport. If your export or reexport is subject to 
General Prohibition 6 (Embargo), consult part 746 of this subchapter 
for applicable License Exceptions.
    (i) Step One--Applicability of General Prohibitions. Determine 
whether any one or more of the general prohibitions described in 
Sec. 734.2(b) of this subchapter apply to your export or reexport. If 
no general prohibition applies to your export or reexport, then you may 
proceed with your export or reexport and need not review this License 
Exceptions chapter. You are reminded of your recordkeeping obligations 
and duties related to the clearance of the U.S. Customs Service 
provided at parts 762 and 758 of this subchapter. If your export or 
reexport is subject to General Prohibition 6 for embargoed 
destinations, refer only to part 746 of this subchapter concerning 
embargoed destinations to determine the availability of any License 
Exception.
    (ii) Step Two--Applicability of restrictions on all License 
Exceptions. Determine whether any one or more of the restrictions in 
Sec. 740.2 applies to your export or reexport. If any one or more of 
these restrictions apply, there are no License Exceptions available to 
you, and you must either obtain a license or refrain from the export or 
reexport.
    (iii) Step Three--Terms and conditions of the License Exceptions. 
If none of the restrictions in Sec. 740.2 applies, then review each of 
the License Exceptions to determine whether any one of them authorizes 
your export or reexport. Eligibility for License Exceptions is based on 
the item, the country of ultimate destination, the end-use, and the 
end-user, along with any special conditions imposed within a specific 
License Exception. You may meet the conditions for more than one 
License Exception. Moreover, although you may not qualify for some 
License Exceptions you may qualify for others. Review the broadest 
License Exceptions first; and use any License Exception available to 
you. You are not required to use the most restrictive applicable 
License Exception. If you fail to qualify for the License Exception 
that you first consider, you may consider any other License Exception 
until you have determined that no License Exception is available. 
License Exceptions TMP, TUS, PTS, S&R, BAG, A&V, SAF, GOV, OTS, and STS 
authorize exports notwithstanding the provisions of the CCL. License 
Exceptions LVS, CSR, GBS, NSG, CIV, and TSR are available only to the 
extent specified on the CCL. This part 740 provides authorization for 
reexports only to the extent each License Exception expressly 
authorizes reexports. License Exception APR authorizes reexports only.
    (iv) Step Four--Scope. Some License Exceptions are limited by 
country or by type of commodity.
    (A) Countries are arranged in country groups for ease of reference. 
For a listing of country groups, please refer to Supplement No. 1 to 
part 740. Unless otherwise indicated in a License Exception, License 
Exceptions do not apply to any exports or reexports to embargoed 
destinations. If your export or reexport is subject to General 
Prohibition 6 for embargoed destinations, License Exceptions are only 
available to the extent specifically provided in part 746 of this 
subchapter concerning embargoed destinations.
    (B) Special commodity controls apply to short supply items. No 
License Exceptions in this part 740 may be used for items listed on the 
CCL as controlled for Short Supply reasons. Exceptions for short supply 
items are found in part 754 of this subchapter.
    (v) Step Five--Compliance with all terms and conditions. If a 
License Exception is available, you may proceed with your export or 
reexport. However, you must meet all the terms and conditions required 
by the License Exception that you determined authorized your export or 
reexport. You must also determine your recordkeeping and documentation 
requirements at parts 758 and 762 of this subchapter.
    (vi) Step Six--License requirements. If no License Exception is 
available, then you must either obtain a license before proceeding with 
your export or reexport or you must refrain from the proposed export or 
reexport.
    (b) Certification. By using any of the License Exceptions you are 
certifying that the terms, provisions, and conditions for the use of 
the License Exception set forth in the EAR have been met. Please refer 
to part 758 of this subchapter for clearance of shipments and 
documenting the use of License Exceptions.
    (c) Shipper's Export Declaration. A person exporting any item under 
any License Exception must enter on any required Shipper's Export 
Declaration (SED) the letter code (e.g., CIV, PTS) of the License 
Exception. In the case of License Exceptions LVS, CSR, GBS and CIV the 
ECCN of the item being exported must also be entered. Please refer to 
Sec. 758.2 of this subchapter for the use of SEDs. Certain items are 
listed on the CCL but do not require a license to all destinations 
under General Prohibitions One, (Exports and Reexports in the Form 
Received), Two (Parts and Components Reexports), or Three (Foreign 
Produced Direct Product Reexports) (Sec. 732.2(b)(1), (b)(2), or (b)(3) 
of this subchapter). If General Prohibitions Four through Ten 
(Sec. 732.2(b)(4) through (b)(10) of this subchapter) also do not 
apply, you must [[Page 25300]] clear exports of such items through the 
U.S. Customs Service by entering the symbol ``NLR'' in the appropriate 
place on the Shippers Export Declaration. The term ``NLR'' represents 
exports of listed items when no license is required. Such exports do 
not require that you qualify for a License Exception.
    (d) Destination Control Statement. A person exporting any item 
under any License Exception is required to enter an appropriate 
Destination Control Statement on commercial documents in accordance 
with the Destination Control Notice requirements of Sec. 758.5 of this 
subchapter.
    (e) Recordkeeping. Records of transactions involving exports under 
any of the License Exceptions must be maintained in accordance with the 
recordkeeping requirements of part 762 of this subchapter.


Sec. 740.2  Restrictions on all License Exceptions.

    (a) You may not use any License Exception if any one or more of the 
following apply:
    (1) Your authorization to use a License Exception has been 
suspended or revoked, or your intended export does not qualify for a 
License Exception.
    (2) The export is contrary to a Denial Order. See part 766 of this 
subchapter for a description of Denial Orders. See the Federal Register 
for the text of any particular Denial Order.
    (3) You know that the item will be reexported and such reexport is 
subject to one of the ten General Prohibitions, is not eligible for a 
License Exception, and has not been authorized by BXA.
    (4) You know that the export will be used for certain end-uses or 
is for certain end-users as set forth and prohibited in part 744 of 
this subchapter.
    (5) The item is for surreptitious interception of wire or oral 
communications as set forth in ECCN 5A80, unless you are a U.S. 
Government agency (see Sec. 740.15, Governments (GOV)).
    (6) The commodity you are shipping is a specially designed crime 
control and detection instrument or equipment as described in 
Sec. 742.7 of this subchapter and you are not shipping to Iceland, New 
Zealand, or countries listed in Country Group A:1 (COCOM Successor 
Regime) (see Supplement No. 1 to part 740), unless the shipment is 
authorized under License Exception BAG, Sec. 740.12(e) (shotguns and 
shotgun shells).
    (b) All License Exceptions are subject to revision, suspension, or 
revocation, in whole or in part, without notice. It may be necessary 
for BXA to stop a shipment or an export transaction at any stage of its 
progress, e.g., in order to prevent an unauthorized export or reexport. 
If a shipment is already en route, it may be further necessary to order 
the return or unloading of the shipment at any port of call.


Sec. 740.3  Shipments of Limited Value (LVS).

    (a) Scope. A License Exception designated License Exception LVS is 
established authorizing the export in a single shipment of eligible 
commodities as described on the CCL.
    (b) Eligible Destinations. This License Exception is available for 
all destinations in Country Group B (see Supplement No. 1 to part 740), 
provided that the net value of the commodities included in the same 
order and controlled under the same ECCN entry on the CCL does not 
exceed the amount specified in the LVS paragraph for that entry.
    (c) Definitions--(1) Order. The term ``order'' as used in this 
Sec. 740.5 means a communication from a person in a foreign country or 
that person's representative expressing an intent to import commodities 
from the exporter. Although all of the details of the order need not be 
finally determined at the time of export, terms relating to the kinds 
and quantities of the commodities to be exported, as well as the 
selling prices of these commodities, must be finalized before the goods 
can be presented for export under this License Exception.
    (2) Net value: for LVS shipments. The actual selling price of the 
commodities that are included in the same order and are controlled 
under the same entry on the CCL, less shipping charges, or the current 
market price of the commodities to the same type of purchaser in the 
United States, whichever is the larger. In determining the actual 
selling price or the current market price of the commodity, the value 
of containers in which the commodity is being exported may be excluded. 
The value for LVS purposes is that of the controlled commodity that is 
being exported, and may not be reduced by subtracting the value of any 
content that would not, if shipped separately, be subject to licensing. 
Where the total value of the containers and their contents must be 
shown on Shipper's Export Declarations under one Schedule B Number, the 
exporter, in effecting a shipment under this License Exception, must 
indicate the ``net value'' of the contained commodity immediately below 
the description of the commodity.
    (3) Single shipment. All commodities moving at the same time from 
one exporter to one consignee or intermediate consignee on the same 
exporting carrier even, though these commodities will be forwarded to 
one or more ultimate consignees. Commodities being transported in this 
manner will be treated as a single shipment even if the commodities 
represent more than one order or are in separate containers.
    (d) Additional eligibility requirements and restrictions--(1) 
Eligible orders. To be eligible for this License Exception, orders must 
meet the following criteria:
    (i) Orders must not exceed the applicable ``LVS'' dollar value 
limits. An order is eligible for shipment under this License Exception 
(LVS) when the ``net value'' of the commodities controlled under the 
same entry on the CCL does not exceed the amount specified in the 
``LVS'' paragraph for that entry. An LVS shipment may include more than 
one eligible order because LVS eligibility is based on the ``net 
value'' of the commodities in each order, instead of the ``net value'' 
of the commodities in the shipment.
    (ii) Orders may not be split to meet the applicable LVS dollar 
limits. An order that exceeds the applicable LVS dollar value limit may 
not be misrepresented as two or more orders, or split among two or more 
shipments, to give the appearance of meeting the applicable LVS dollar 
value limit. However an order that meets all the LVS eligibility 
requirements, including the applicable LVS dollar value limit, may be 
split among two or more shipments.
    (iii) Orders must be legitimate. Exporters and consignees may not, 
either collectively or individually, structure or adjust orders to meet 
the applicable LVS dollar value limits.
    (2) Restriction on annual value of LVS orders. Shipments of items 
in a single ECCN on the CCL may not exceed 12 times the LVS value limit 
for that ECCN per calendar year to the same ultimate consignee or 
intermediate consignee. This annual value limit applies to shipments to 
the same ultimate consignee even though the shipments are made through 
more than one intermediate consignee. There is no restriction on the 
number of orders that may be included in a shipment, except that the 
annual value limit per ECCN must not be exceeded.
    (3) Orders where two or more LVS dollar value limits apply. An 
order may include commodities that are controlled under more than one 
entry on the CCL. In this case, the net value of the entire order may 
exceed the LVS dollar value for any single entry on the CCL. However, 
the net value of the commodities controlled under each ECCN entry shall 
not exceed the LVS [[Page 25301]] dollar value limit specified for that 
entry.

    Example: An order includes commodities valued at $8,000. The 
order consists of commodities controlled under two ECCN entries. 
Commodities in the order controlled under one ECCN are valued at 
$3,000 while those controlled under the other ECCN are valued at 
$5,000. Since the net value of the commodities controlled under each 
entry falls within the LVS dollar value limits applicable to that 
entry, the order may be shipped under this License Exception.

    (4) Prohibition against evasion of license requirements. Any device 
involving the use of this License Exception to evade license 
requirements is prohibited. Such devices include, but are not limited 
to, the splitting or structuring of orders to meet applicable LVS 
dollar value limits, as prohibited by paragraphs (d)(1) (ii) and (iii) 
of this section.
    (e) Reexports. Commodities may be reexported under this License 
Exception, provided that they could be exported from the United States 
to the new country of destination under LVS.


Sec. 740.4  COCOM Successor Regime (CSR).

    (a) Scope. A License Exception designated License Exception CSR is 
established authorizing exports to eligible countries of all 
commodities controlled for national security reasons, except those 
specifically excluded by the CSR paragraphs on the CCL. Reexports of 
additional commodities may be authorized by paragraph (d) of this 
section. Exports may be made under this License Exception only when 
intended for use or consumption within the importing country, reexport 
among and consumption within eligible countries, or reexport in 
accordance with other provisions of the EAR.
    (b) Eligible countries. The countries that are eligible to receive 
exports under this License Exception are the countries listed in 
Country Group A:1 (COCOM Successor Regime) (see Supplement No. 1 to 
part 740), as well as the cooperating countries indicated by footnote 
to Country Group A. Note, however, that generally there is no license 
requirement for shipments to Canada (see Sec. 732.12 of this 
subchapter).
    (c) Restrictions on commodities re-directed en route. Commodities 
exported under the provisions of this section may not be re-directed en 
route to a new country of destination without prior authorization from 
BXA,unless the new ultimate country of destination is also an eligible 
country under this License Exception.
    (d) Reexports--(1) Reexports from Country Group A:1 (COCOM 
Successor Regime) and cooperating countries. Reexports may be made from 
Country Group A:1 (COCOM Successor Regime) or from cooperating 
countries, provided that:
    (i) The reexport is made in accordance with the conditions of an 
export authorization from the government of the reexporting country;
    (ii) The commodities being reexported are not controlled for 
Nuclear Nonproliferation, Missile Technology or Crime Control reasons; 
and
    (iii) The reexport is destined to either:
    (A) A country in Country Group B, Cambodia, or Laos and the 
commodity being reexported is both controlled for national security 
reasons and eligible for this License Exception; or
    (B) A country in Country Group D:1 only (National Security) (see 
Supplement No. 1 to part 740), other than Cambodia or Laos, and the 
commodity being reexported is controlled for national security reasons.
    (2) Reexports to and among Country Group A:1 (COCOM Successor 
Regime) and cooperating countries. Reexports may be made to and among 
Country Group A:1 (COCOM Successor Regime) and cooperating countries, 
provided that eligible commodities are for use or consumption within a 
Country Group A:1 (COCOM Successor Regime) (see Supplement No. 1 to 
part 740) or cooperating country, or for reexport from such country in 
accordance with other provisions of the EAR. All commodities except the 
following are eligible for reexport to and among Country Group A:1 and 
cooperating countries:
    (i) Supercomputers;
    (ii) Commodities controlled for Nuclear Nonproliferation reasons; 
and
    (iii) Electronic, mechanical or other devices, as described in ECCN 
5A80, primarily useful for surreptitious interception of wire or oral 
communications.


Sec. 740.5  Shipments to Country Group B countries (GBS).

    (a) Scope. A License Exception designated License Exception GBS is 
established authorizing exports and reexports to Country Group B (see 
Supplement No. 1 to part 740) of certain commodities controlled for 
national security reasons.
    (b) Eligible commodities. Eligible commodities identified by the 
``GBS'' paragraph in the Requirements section of each entry on the CCL.


Sec. 740.6  Nuclear Suppliers Group (NSG).

    (a) Scope. A License Exception designated License Exception NSG is 
established authorizing exports and reexports to eligible countries of 
commodities, software, and technology described below. Exports may be 
made under this License Exception only when intended for use or 
consumption within the importing country, reexport among and 
consumption within eligible countries, or reexport in accordance with 
other provisions of the EAR.
    (b) Eligible countries. The countries listed in Country Group A:4 
(Nuclear Suppliers Group) (see Supplement No. 1 to part 740) are 
eligible for this License Exception. Note, however, that generally 
there is no license requirement for shipments to Canada (see 
Sec. 732.12 of this subchapter).
    (c)(1) Eligible commodities, software, and technology. The eligible 
commodities, software, and technology are indicated in the NSG 
paragraph under the Requirements heading in applicable ECCNs on the 
CCL. In addition, the following items are not eligible for this License 
Exception:
    (i) Items that are subject to missile technology controls; and
    (ii) Items for export to Bulgaria, Romania, or Russia that are 
controlled for national security reasons.
    (2) In addition, for shipments to Russia under NSG, General 
Prohibition 8 (transit) does not apply to commodities, software, and 
technology that are not controlled for national security reasons.
    (d) Reexports. Commodities, software and technology eligible for 
this License Exception may be reexported to, among, and from countries 
eligible for this License Exception, except:
    (1) Reexports from countries other than those in Country Group A:1 
of commodities, software or technology controlled for national security 
reasons to destinations in Country Group D:1 (see Supplement No. 1 to 
part 740); or
    (2) Reexports to destinations in Country Group D:2 or E:2.


Sec. 740.7  Civil end-users (CIV).

    (a) Scope. This License Exception, designated License Exception 
CIV, authorizes certain exports and reexports as set forth in this 
section.
    (b) Eligibility. License Exception CIV is available only for 
exports and reexports of certain specified items to civil end-users for 
civil end-uses in Country Group D:1. (See Supplement No. 1 to part 
740.) CIV may not be used for exports and reexports to military end-
users or to known military uses. Such exports and reexports will 
continue to require a license and be considered on a case-by-case 
basis. In addition to conventional military activities, military uses 
include any proliferation activities described and prohibited in part 
744 of this [[Page 25302]] subchapter. Retransfer to military end-users 
or end-uses in eligible countries is strictly prohibited without prior 
authorization. The items eligible for this License Exception are those 
indicated on the CCL.


Sec. 740.8  Temporary exports (TMP).

    (a) Scope. A License Exception designated License Exception TMP is 
established authorizing the export and reexport of commodities and 
software for temporary use abroad (including use in international 
waters) subject to the conditions and exclusions described in this 
section. Commodities and software shipped under this License Exception 
must be returned to the country from which they were exported as soon 
as practicable but, except in circumstances described in this section, 
no later than one year from the date of export. This requirement does 
not apply if the commodities and software are consumed or destroyed in 
the normal course of authorized temporary use abroad or an extension or 
other disposition is permitted by the EAR or in writing by BXA.
    (b) Eligible commodities and software. The following commodities 
and software are eligible to be shipped under License Exception TMP:
    (1) Tools of trade. Usual and reasonable kinds and quantities of 
commodities and software for use by employees of the exporter in a 
lawful enterprise or undertaking of the exporter. Eligible commodities 
and software may include, but are not limited to, such equipment as is 
necessary to commission or service goods, provided that the equipment 
is appropriate for this purpose and that all goods to be commissioned 
or serviced are of foreign origin, or if subject to the EAR, have been 
legally exported or reexported. The commodities and software must 
remain under the effective control of the exporter or the exporter's 
employee. The shipment of commodities and software may accompany the 
individual departing from the United States or may be shipped 
unaccompanied within one month before the individual's departure from 
the United States, or at any time after departure. No tools of the 
trade may be taken to Country Group E:2, and only equipment necessary 
to commission or service goods may be taken as tools of trade to 
Country Group D:1. (See Supplement No. 1 to part 740.)
    (2) Kits consisting of replacement parts. Kits consisting of 
replacement parts may be exported or reexported under this section to 
all destinations, except Country Group E:2 (see Supplement No. 1 to 
part 740), provided that:
    (i) The parts would qualify for shipment under License Exception 
PTS if exported as one-for-one replacements;
    (ii) The kits remain under effective control of the exporter or an 
employee of the exporter; and
    (iii) All parts in the kit are returned, except that one-for-one 
replacements may be made in accordance with the requirements of PTS and 
the defective parts returned.
    (3) Exhibition and demonstration in Country Group B. Commodities 
and software for exhibition or demonstration in Country Group B (see 
Supplement No. 1 to part 740) may be exported or reexported under this 
provision provided that the exporter maintains ownership of the 
commodities and software while they are abroad and provided that the 
exporter, an employee of the exporter, or the exporter's designated 
sales representative retains effective control over the commodities and 
software while they are abroad. The commodities may not be used for 
their intended purpose while abroad, except to the minimum extent 
required for effective demonstration. The commodities and software may 
not be exhibited or demonstrated at any one site more than 120 days 
after installation and debugging, unless authorized by BXA. However, 
before or after an exhibition or demonstration, the commodities and 
software may be placed in a bonded warehouse or a storage facility 
provided that the exporter retains effective control over disposition 
of the commodities and software, pending movement to another site, 
return to the United States or the foreign reexporter, or BXA approval 
for other disposition. The export documentation for this type of 
transaction must show the U.S. exporter as ultimate consignee, in care 
of the person who will have control over the commodities and software 
abroad.
    (4) Inspection and calibration. Commodities to be inspected, 
tested, calibrated or repaired abroad.
    (5) Containers. Containers for which another License Exception is 
not available and that are necessary for export of commodities. 
However, this License Exception does not authorize the export of the 
container's contents, which, if not exempt from licensing, must be 
separately authorized for export under either a License Exception or a 
license.
    (6) Broadcast material. (i) Video tape containing program material 
recorded in the country of export to be publicly broadcast in another 
country.
    (ii) Blank video tape (raw stock) for use in recording program 
material abroad.
    (7) Assembly in Mexico. Commodities to be exported to Mexico under 
Customs entries that require return to the United States after 
processing, assembly, or incorporation into end products by companies, 
factories, or facilities participating in Mexico's in-bond 
industrialization program (Maquilladora), provided that all resulting 
end-products (or the commodities themselves) are returned to the United 
States.
    (8) News media. (i) Commodities necessary for news-gathering 
purposes (and software necessary to use such commodities) may accompany 
``accredited'' news media personnel (i.e., persons with credentials 
from a news gathering or reporting firm) to Country Groups D:1 or E:2 
(see Supplement No. 1 to part 740) if the commodities:
    (A) Are retained under ``effective control'' of the exporting news 
gathering firm;
    (B) Remain in the physical possession of the news media personnel. 
The term physical possession for purposes of this paragraph (b)(8), 
news media, is defined as maintaining effective measures to prevent 
unauthorized access (e.g., securing equipment in locked facilities or 
hiring security guards to protect the equipment); and
    (C) Are removed with the news media personnel at the end of the 
trip.
    (ii) When exporting under this section from the United States, the 
exporter must send a copy of the packing list or similar identification 
of the exported commodities, to: U.S. Department of Commerce, Bureau of 
Export Administration, Office of Enforcement Support, Room H4069, 14th 
Street and Constitution Avenue, N.W., Washington, DC 20230, or any of 
its field offices, specifying the destination and estimated dates of 
departure and return. The Office of Export Enforcement (OEE) may spot 
check returns to assure that this License Exception is being used 
properly.
    (iii) Commodities necessary for news-gathering purposes that 
accompany news media personnel to all other destinations shall be 
exported or reexported under paragraph (b)(1), tools of trade, of this 
section if owned by the news gathering firm, or under Sec. 740.12, 
License Exception BAG if they are personal property of the individual 
news media personnel.

    (Note: paragraphs (b)(1), tools of trade and (b)(8)(iii), news 
media, of this section do not preclude independent ``accredited'' 
contract personnel, who are under control of news 
[[Page 25303]] gathering firms while on assignment, from utilizing 
these provisions, provided that the news gathering firm designate an 
employee of the contract firm to be responsible for the equipment.)

    (c) Special restrictions--(1) Destinations. (i) No commodity or 
software may be exported under this License Exception to Country Group 
E:2 (see Supplement No. 1 to part 740) except as permitted by paragraph 
(b)(8), news media, of this section;
    (ii) No commodity or software may be exported under this License 
Exception to Country Group D:1 (see Supplement No. 1 to part 740) 
except:
    (A) Commodities and software exported under paragraph (b)(8), news 
media, of this section;
    (B) Commodities and software exported under paragraph (b)(1), tools 
of trade, of this section; and
    (C) Commodities exported as kits of replacement parts, consistent 
with the requirements of paragraph (b)(2) of this section.
    (iii) These destination restrictions apply to temporary exports to 
and for use on any vessel, aircraft or territory under ownership, 
control, lease, or charter by any country in Country Group D:1 or E:2, 
or any national thereof. (See Supplement No. 1 to part 740.)
    (2) Commodities. The following commodities may not be exported or 
reexported to any destination under this License Exception:
    (i) Supercomputers;
    (ii) Commodities that will be used outside of Country Group A:4 
(Nuclear Suppliers Group) (see Supplement No. 1 to part 740) either 
directly or indirectly in any sensitive nuclear activity as described 
in Sec. 744.2 of this subchapter.
    (iii) Electronic, mechanical, or other devices, as described in 
ECCN 5A80, primarily useful for surreptitious interception of wire or 
oral communications.
    (3) Use or disposition. No commodity or software may be exported or 
reexported under this License Exception if:
    (i) An order to acquire the commodity or software has been received 
before shipment;
    (ii) The exporter has prior knowledge that the commodity or 
software will stay abroad beyond the terms of this License Exception; 
or
    (iii) The commodity or software is for lease or rental abroad.
    (d) Return or disposal of commodities and software. All commodities 
and software exported or reexported under this License Exception must, 
if not consumed or destroyed in the normal course of authorized 
temporary use abroad, be returned as soon as practicable but no later 
than one year after the date of export, to the United States or other 
country from which the commodities and software were exported under 
this License Exception, or shall be disposed of or retained in one of 
the following ways:
    (1) Authorization under Form BXA-748P. If the U.S. exporter or the 
reexporter wishes to sell or otherwise dispose of the commodities or 
software abroad, except as permitted by this or other applicable 
License Exception, the exporter must request authorization by 
submitting Form BXA-748P, Multipurpose Application, to BXA at the 
address listed in part 748 of this subchapter. (See part 748 of this 
subchapter for more information on reexport authorizations.) The 
request should comply with all applicable provisions of the EAR 
covering export directly from the United States to the proposed 
destination. The request must also be supported by any documents that 
would be required in support of an application for export license for 
shipment of the same commodities directly from the United States to the 
proposed destination. BXA will advise the exporter of its decision.
    (2) Use of a license. An outstanding license may also be used to 
dispose of commodities or software covered by the License Exception 
described in this section, provided that the outstanding license 
authorizes direct shipment of the same commodity or software to the 
same new ultimate consignee in the new country of destination.
    (3) Authorization to retain abroad beyond one year. If the exporter 
wishes to retain a commodity or software abroad beyond the 12 months 
authorized in Sec. 740.8(a), the exporter must request authorization by 
submitting Form BXA-748P, Multipurpose Application, 90 days prior to 
the expiration of the 12 month period. The request must be sent to BXA 
at the address listed in part 748 of this subchapter and should include 
the name and address of the exporter, the date the commodities or 
software were exported, a brief product description, and the 
justification for the extension. If BXA approves the extension request, 
the exporter will receive authorization for a one-time extension not to 
exceed six months. BXA normally will not allow an extension for 
commodities or software that have been abroad more than 12 months, nor 
will a second six month extension be authorized. Any request for 
retaining the commodities or software abroad for a period exceeding 18 
months must be made in accordance with the requirements of paragraph 
(d)(1) of this section.


Sec. 740.9  Exports of items temporarily in the United States (TUS).

    (a) Scope. This License Exception, designated License Exception 
TUS, describes the conditions for exporting foreign-origin items 
temporarily in the United States. Specifically, this License Exception 
includes the export of items moving in transit through the United 
States, imported for display at a U.S. exhibition or trade fair, 
returned because unwanted, or returned because refused entry.

    (Note: A commodity withdrawn from a bonded warehouse in the 
United States under a ``withdrawal for export'' customs entry is 
considered as ``moving in transit''. It is not considered as 
``moving in transit'' if it is withdrawn from a bonded warehouse 
under any other type of customs entry or if its transit has been 
broken for a processing operation, regardless of the type of customs 
entry.)

    (b) Items moving in transit through the United States. Subject to 
the following conditions, this License Exception authorizes export of 
items moving in transit through the United States under a 
Transportation and Exportation (T. & E.) customs entry or an Immediate 
Exportation (I.E.) customs entry made at a U.S. Customs Office.
    (1) Items controlled for national security, nuclear proliferation, 
missile technology, or chemical and biological weapons reasons may not 
be exported to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 to 
part 740), respectively, under this License Exception.
    (2) Items may not be exported to Country Group E:2 under this 
License Exception.
    (3) The following may not be exported in transit from the United 
States under TUS:
    (i) Commodities shipped to the United States under an International 
Import Certificate, Form BXA-645P;
    (ii) Chemicals controlled under ECCN 1C60; or
    (iii) Horses for export by sea (refer to short supply controls in 
part 754 of this subchapter).
    (4) The provisions of this License Exception apply to all shipments 
from Canada moving in transit through the United States to any foreign 
destination, regardless of the nature of the commodities or their 
origin. For such shipments the customs office at the U.S. port of 
export will require a copy of Form B-13, Canadian Customs Entry, 
certified or stamped by Canadian customs authorities, except where the 
shipment is exempt from U.S. licensing, [[Page 25304]] or made under a 
U.S. license or applicable U.S. License Exception other than this 
License Exception, or is valued at less than $50.00. The commodity 
description, quantity, ultimate consignee, country of ultimate 
destination, and all other pertinent details of the shipment must be 
the same on a required Form B-13, as on Commerce Form 7513,<SUP>1 or 
when Form 7513 is not required, must be the same as on Customs Form 
7512. When there is a material difference, a corrected Form B-13 
authorizing the shipment is required.

    \1\The complete names of these forms are: Commerce Form 7513, 
``Shipper's Export Declaration for Intransit Goods''; Customs Form 
7512, ``Transportation Entry and Manifest of Goods Subject to 
Customs Inspection and Permit.''
---------------------------------------------------------------------------

    (c) Items imported for display at U.S. exhibitions or trade fairs. 
Subject to the following conditions, License Exception TUS authorizes 
the export of items that were imported into the United States for 
display at an exhibition or trade fair and were either entered under 
bond or permitted temporary free import under bond providing for their 
export and are being exported in accordance with the terms of that 
bond.
    (1) Items may be exported to the country from which imported into 
the United States. However, items originally imported from Cuba or 
North Korea may not be exported unless the U.S. Government had licensed 
the import from that country.
    (2) Items may be exported to any destination other than the country 
from which imported except:
    (i) Items imported into the United States under an International 
Import Certificate;
    (ii) Exports to Country Group E:2 (see Supplement No. 1 to part 
740); or
    (iii) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 
1 to part 740) of items controlled for national security, nuclear 
proliferation, missile technology, or chemical and biological weapons 
reasons, respectively.
    (d) Return of unwanted shipments. A foreign-origin item may be 
returned under this License Exception to the country from which it was 
imported if its characteristics and capabilities have not been enhanced 
while in the United States. No foreign-origin items may be returned to 
Cuba, Libya, or North Korea.
    (e) Return of shipments refused entry. Shipments of items refused 
entry by the U.S. Customs Service, the Food and Drug Administration, or 
any other U.S. Government agency may be returned to the country of 
origin, except to:
    (1) A destination in Cuba, Libya, or North Korea; or
    (2) A destination from which the shipment has been refused entry 
because of the Foreign Assets Control Regulations of the Treasury 
Department, unless such return is licensed or otherwise authorized by 
the Treasury Department, Office of Foreign Assets Control (31 CFR part 
500).


Sec. 740.10  Parts (PTS).

    (a) Scope. This License Exception, designated License Exception 
PTS, authorizes the export and reexport of one-for-one replacement 
parts for previously exported equipment.
    (b) One-for-one replacement of parts. (1) The term ``replacement 
parts'' means parts needed for the immediate repair of equipment, 
including replacement of defective or worn parts. (It includes 
subassemblies but does not include test instruments or operating 
supplies). (The term ``subassembly'' means a number of components 
assembled to perform a specific function or functions within a 
commodity. One example would be printed circuit boards with components 
mounted thereon. This definition does not include major subsystems such 
as those composed of a number of subassemblies.) Items that improve or 
change the basic design characteristics, e.g., as to accuracy, 
capability, performance or productivity, of the equipment upon which 
they are installed, are not deemed to be replacement parts. For kits 
consisting of replacement parts, consult TMP, Sec. 740.8(b)(2).
    (2) Parts may be exported only to replace, on a one-for-one basis, 
parts contained in commodities that were: legally exported from the 
United States; legally reexported; or made in a foreign country 
incorporating authorized U.S.-origin parts. The conditions of the 
original U.S. authorization must not have been violated. Accordingly, 
the export of replacement parts may be made only by the party who 
originally exported or reexported the commodity to be repaired, or by a 
party that has confirmed the appropriate authority for the original 
transaction.
    (3) The parts to be replaced must either be destroyed abroad or 
returned promptly to the party who supplied the replacement parts, or 
to a foreign firm that is under the effective control of that party.
    (c) Exclusions. (1) No replacement parts may be exported under this 
License Exception to repair a commodity exported under a license if 
that license included a condition that any subsequent replacement parts 
must be exported only under a license.
    (2) No parts may be exported under this License Exception to be 
held abroad as spare parts or equipment for future use. Replacement 
parts may be exported to replace spare parts that were authorized to 
accompany the export of equipment, as those spare parts are utilized in 
the repair of the equipment. This will allow maintenance of the stock 
of spares at a consistent level as parts are used.
    (3) No parts may be exported under this License Exception to any 
destination except Iceland, New Zealand, or the countries listed in 
Country Group A:1 (COCOM Successor Regime) (see Supplement No. 1 to 
part 740) if the item is to be incorporated into or used in nuclear 
weapons, nuclear explosive devices, nuclear testing, the chemical 
processing of irradiated special nuclear or source material, the 
production of heavy water, the separation of isotopes of source and 
special nuclear materials, or the fabrication of nuclear reactor fuel 
containing plutonium, as described in Sec. 744.2(b) of this subchapter.
    (4) No replacement parts shall be exported under this License 
Exception to Cuba, Iran, Iraq, Sudan, Syria, Libya, or North Korea 
(countries designated by the Secretary of State as supporting acts of 
international terrorism) if the commodity to be repaired is an 
aircraft, helicopter, or national security controlled commodity.
    (5) The conditions set forth in this paragraph (c) relating to 
replacement of parts do not apply to reexports to a foreign country of 
parts as replacements in foreign-origin products, if at the time the 
replacements are furnished, the foreign-origin product is eligible for 
export to such country under any of the License Exceptions in this part 
or the exceptions in Sec. 732.4(b)(2)(ii) and (iii) of this subchapter.
    (d) Reexports. Parts exported from the United States may be 
reexported to a new country of destination, provided that the 
restrictions described in paragraphs (b) and (c) of this section are 
met. A party reexporting U.S.-origin one-for-one replacement parts 
shall ensure that the commodities being repaired were shipped to their 
present location in accordance with U.S. law and continue to be legally 
used, and that either before or promptly after reexport of the 
replacement parts, the replaced parts are either destroyed or returned 
to the United States, or to the foreign firm in Country Group B (see 
Supplement No. 1 to part 740) that shipped the replacement parts.


Sec. 740.11  Servicing and Replacement (S&R).

    (a) Scope. This License Exception, designated License Exception 
S&R, [[Page 25305]] authorizes export of items that were returned to 
the United States for servicing and the replacement of defective or 
unacceptable U.S.-origin commodities and software.
    (b) Items sent to a United States or foreign party for servicing--
(1) Definition. ``Servicing'' means inspection, testing, calibration or 
repair, including overhaul and reconditioning. The servicing shall not 
have improved or changed the basic characteristics, e.g., as to 
accuracy, capability, performance, or productivity of the commodity or 
software as originally authorized for export or reexport.
    (2) Return of serviced items. When the serviced item is returned, 
it may include any replacement or rebuilt parts necessary to its repair 
and may be accompanied by any spare part, tool, accessory, or other 
item that was sent with it for servicing.
    (3) Items imported from Country Group D:1 except the PRC. Items 
legally exported or reexported to a consignee in Country Group D:1 
(except the People's Republic of China (PRC)) (see Supplement No. 1 to 
part 740) that are sent to the United States or a foreign party for 
servicing may be returned under this License Exception to the country 
from which it was sent, provided that both of the following conditions 
are met:
    (i) The exporter making the shipment is the same person or firm to 
whom the original license was issued; and
    (ii) The end-use and the end-user of the serviced item and other 
particulars of the transaction, as set forth in the application and 
supporting documentation that formed the basis for issuance of the 
license have not changed.
    (4) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria. No 
repaired item may be exported or reexported to Cuba, Iran, Iraq, Libya, 
North Korea, Sudan, or Syria under this section.
    (c) Replacements for defective or unacceptable U.S.-origin 
equipment. (1) Subject to the following conditions, certain items may 
be exported to replace defective or otherwise unusable (e.g., 
erroneously supplied) items.
    (i) The item to be replaced must have been previously exported or 
reexported in its present form under a license or authorization granted 
by BXA.
    (ii) No item may be exported to replace equipment that is worn out 
from normal use, nor may any item be exported to be held in stock 
abroad as spare equipment for future use.
    (iii) The replacement item may not improve the basic 
characteristic, e.g., as to accuracy, capability, performance, or 
productivity, of the item as originally approved for export or reexport 
under a license issued by BXA.
    (iv) No shipment may be made to Cuba, Iran, Iraq, Libya, North 
Korea, Sudan, or Syria, or to any other destination to replace 
defective or otherwise unusable equipment owned or controlled by, or 
leased or chartered to, a national of any of those countries.
    (2) Special conditions applicable to exports to Country Group B and 
Country Group D:1. (See Supplement No. 1 to part 740.) In addition to 
the general conditions set forth in paragraph (c)(1) of this section, 
the following conditions apply to exports or reexports of replacements 
for defective or unacceptable U.S.-origin commodities or software to a 
destination in Country Group B and Country Group D:1:
    (i) By making such an export or reexport, the exporter represents 
that all the requirements of paragraph (c) have been met and undertakes 
to destroy or return the replaced parts as set forth in paragraph 
(c)(2)(iii) of this section.
    (ii) The defective or otherwise unusable item must be replaced free 
of charge, except for transportation and labor charges. If exporting to 
the countries listed in Country Group D:1 (except the PRC), the 
exporter shall replace the item within the warranty period or within 12 
months of its shipment to the ultimate consignee in the country of 
destination, whichever is shorter.
    (iii) The item to be replaced must either be destroyed abroad or 
returned to the United States, or to a foreign firm in Country Group B 
that is under the effective control of the U.S. exporter, or to the 
foreign firm that is providing the replacement part or equipment. The 
destruction or return must be effected before, or promptly after, the 
replacement item is exported from the United States.
    (iv) A party reexporting replacements for defective or unacceptable 
U.S.-origin equipment must ensure that the commodities being replaced 
were shipped to their present location in accordance with U.S. law and 
continue to be legally used.


Sec. 740.12  Baggage (BAG).

    (a) Scope. This License Exception, designated License Exception 
BAG, authorizes individuals leaving the United States and crew members 
of exporting carriers to take to any destination, as personal baggage, 
the classes of commodities set forth in this section.
    (b) Eligibility. Individuals leaving the United States may export 
any of the following items to any destination or series of 
destinations. Crew members may export only items described in 
paragraphs (b)(1) and (b)(2) of this section to any destination.
    (1) Personal effects. Usual and reasonable kinds and quantities for 
personal use of wearing apparel, articles of personal adornment, toilet 
articles, medicinal supplies, food, souvenirs, games, and similar 
personal effects, and their containers.
    (2) Household effects. Usual and reasonable kinds and quantities 
for personal use of furniture, household effects, household 
furnishings, and their containers.
    (3) Vehicles. Usual and reasonable kinds and quantities of 
vehicles, such as passenger cars, station wagons, trucks, trailers, 
motorcycles, bicycles, tricycles, perambulators, and their containers.
    (4) Tools of trade. Usual and reasonable kinds and quantities of 
tools, instruments, or equipment and their containers for use in the 
trade, occupation, employment, vocation, or hobby of the traveler.
    (c) Limits on eligibility. The export of any commodity may be 
limited or prohibited, if the kind or quantity is in excess of the 
limits set forth in this section. In addition, the commodities must be:
    (1) Owned by the individuals (or by members of their immediate 
families) or by crew members of exporting carriers on the dates they 
depart from the United States;
    (2) Intended for and necessary and appropriate for the use of the 
individuals or members of their immediate families, or by the crew 
members of exporting carriers;
    (3) Not intended for sale.
    (4) Not exported under a bill of lading as cargo if exported by 
crew members.
    (d) Special provision: unaccompanied baggage. Individuals departing 
the United States may ship unaccompanied baggage, which is baggage sent 
from the United States on a carrier other than that on which an 
individual departs. Crew members of exporting carriers may not ship 
unaccompanied baggage. Unaccompanied shipments under this License 
Exception shall be clearly marked ``BAGGAGE.'' Shipments of 
unaccompanied baggage may be made at the time of, or within a 
reasonable time before or after departure of the consignee or owner 
from the United States. Items of personal baggage controlled for 
Chemical and Biological Weapons (CB), Missile Technology (MT), National 
Security (NS) or Nuclear Nonproliferation (NP) must be shipped within 3 
months before or after the month in which the consignee or owner 
departs the United States. However, commodities controlled for CB, MT, 
NS [[Page 25306]] or NP may not be exported under this License 
Exception to Country Group D or Country Group E:2. (See Supplement No. 
1 to part 740.)
    (e) Special provisions: shotguns and shotgun shells. (1) A United 
States citizen or a permanent resident alien leaving the United States 
may export or reexport shotguns with a barrel length of 18 inches or 
over and shotgun shells under this License Exception, subject to the 
following limitations:
    (i) Not more than three shotguns may be taken on any one trip.
    (ii) The shotguns and shotgun shells must be with the person's 
baggage but they may not be mailed.
    (iii) The shotguns and shotgun shells must be for the person's 
exclusive use for legitimate hunting or lawful sporting purposes, 
scientific purposes, or personal protection, and not for resale or 
other transfer of ownership or control. Accordingly, except as provided 
in paragraph (e)(2) of this section, shotguns may not be exported 
permanently under this License Exception. All shotguns and unused 
shotgun shells must be returned to the United States.
    (2) A nonresident alien leaving the United States may export or 
reexport under this License Exception only such shotguns and shotgun 
shells as he or she brought into the United States under the provisions 
of Department of Treasury Regulations (27 CFR 178.115(d)).


Sec. 740.13  Aircraft and Vessels (A&V).

    (a) Scope. A License Exception designated License Exception A&V is 
established authorizing the departure from the United States of foreign 
registry civil aircraft on temporary sojourn in the United States and 
of U.S. civil aircraft for temporary sojourn abroad; the export of 
equipment and spare parts for permanent use on a vessel or aircraft; 
and exports to vessels or planes of U.S. or Canadian registry and U.S. 
or Canadian Airlines' installations or agents.
    (b) Aircraft on temporary sojourn--(1) Foreign registered aircraft. 
An operating civil aircraft of foreign registry that has been in the 
United States on a temporary sojourn may depart from the United States 
under its own power for any destination, provided that:
    (i) No sale or transfer of operational control of the aircraft to 
nationals of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria has 
occurred while in the United States;
    (ii) The aircraft is not departing for the purpose of sale or 
transfer of operational control to nationals of Cuba, Iran, Iraq, 
Libya, North Korea, Sudan, or Syria; and
    (iii) It does not carry from the United States any commodity for 
which export authorization is required and has not been granted by the 
appropriate U.S. Government agency.
    (2) U.S. registered aircraft. (i) A civil aircraft of U.S. registry 
operating under an Air Carrier Operating Certificate, Commercial 
Operating Certificate, or Air Taxi Operating Certificate issued by the 
Federal Aviation Administration or conducting flights under operating 
specifications approved by the Federal Aviation Administration pursuant 
to 14 CFR Part 129 of the regulations of the Federal Aviation 
Administration, may depart from the United States under its own power 
for any destination, provided that:
    (A) The aircraft does not depart for the purpose of sale, lease or 
other disposition of operational control of the aircraft, or its 
equipment, parts, accessories, or components to a foreign country or 
any national thereof;
    (B) The aircraft's U.S. registration will not be changed while 
abroad;
    (C) The aircraft is not to be used in any foreign military activity 
while abroad; and
    (D) The aircraft does not carry any commodity from the United 
States for which export authorization has not been granted by the 
appropriate U.S. Government agency.
    (ii) Any other operating civil aircraft of U.S. registry may depart 
from the United States under its own power for any destination, except 
to Cuba, Iran, Iraq, Sudan, Syria, Libya, and North Korea (flights to 
these destinations require a license), provided that:
    (A) The aircraft does not depart for the purpose of sale, lease or 
other disposition of operational control of the aircraft, or its 
equipment, parts, accessories, or components to a foreign country or 
any national thereof;
    (B) The aircraft's U.S. registration will not be changed while 
abroad;
    (C) The aircraft is not to be used in any foreign military activity 
while abroad;
    (D) The aircraft does not carry any commodity from the United 
States for which export authorization is required and has not been 
granted by the appropriate U.S. Government agency; and
    (E) The aircraft will be operated while abroad by a U.S. licensed 
pilot, except that during domestic flights within a foreign country, 
the aircraft may be operated by a pilot currently licensed by that 
foreign country.
    (3) Criteria. The following nine criteria each must be met if the 
flight is to qualify as a temporary sojourn. To be considered a 
temporary sojourn, the flight must not be for the purpose of sale or 
transfer of operational control. An export is for the transfer of 
operational control unless the exporter retains each of the following 
indicia of control:
    (i) Hiring of cockpit crew. Right to hire and fire the cockpit 
crew.
    (ii) Dispatch of aircraft. Right to dispatch the aircraft.
    (iii) Selection of routes. Right to determine the aircraft's routes 
(except for contractual commitments entered into by the exporter for 
specifically designated routes).
    (iv) Place of maintenance. Right to perform or obtain the principal 
maintenance on the aircraft, which principal maintenance is conducted 
outside Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, under 
the control of a party who is not a national of any of these countries. 
(The minimum necessary in-transit maintenance may be performed in any 
country).
    (v) Location of spares. Spares are not located in Cuba, Iran, Iraq, 
Libya, North Korea, Sudan, or Syria.
    (vi) Place of registration. The place of registration is not 
changed to Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria.
    (vii) No transfer of technology. No technology is transferred to a 
national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, 
except the minimum necessary in transit maintenance to perform flight 
line servicing required to depart safely.
    (viii) Color and logos. The aircraft does not bear the livery, 
colors, or logos of a national of Cuba, Iran, Iraq, Libya, North Korea, 
Sudan, or Syria.
    (ix) Flight number. The aircraft does not fly under a flight number 
issued to a national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or 
Syria as such a number appears in the Official Airline Guide.
    (4) Reexports. Civil aircraft legally exported from the United 
States may be reexported under this section, provided the restrictions 
described in this paragraph (b) are met.
    (c) Equipment and spare parts for permanent use on a vessel or 
aircraft--(1) Vessel. Equipment and spare parts for permanent use on a 
vessel, when necessary for the proper operation of such vessel, may be 
exported for use on board a vessel of any registry, except a vessel 
registered in Country Group D:1 (see Supplement No. 1 to part 740), 
Cuba, or North Korea, or owned or controlled by, or under charter or 
lease to any of these countries or their nationals. In addition, other 
equipment and services for necessary repair to fishing and fishery 
support vessels of [[Page 25307]] Country Group D:1 or North Korea may 
be exported for use on board such vessels when admitted into the United 
States under governing international fishery agreements.
    (2) Aircraft. Equipment and spare parts for permanent use on an 
aircraft, when necessary for the proper operation of such aircraft, may 
be exported for use on board an aircraft of any registry, except an 
aircraft registered in, owned or controlled by, or under charter or 
lease to a country included in Country Group D:1, Cuba, Libya, or North 
Korea, or a national of any of these countries.
    (d) Shipments to U.S. or Canadian vessels, planes and airline 
installations or agents--(1) Exports to vessels or planes of U.S. or 
Canadian registry. Export may be made of the commodities set forth in 
paragraph (d)(3) of this section, for use by or on a specific vessel or 
plane of U.S. or Canadian registry located at any seaport or airport 
outside the United States or Canada except a port in Cuba, North Korea 
or Country Group D:1 (excluding the PRC and Romania), (see Supplement 
No. 1 to part 740) provided that such commodities are all of the 
following:<SUP>2

    \2\Where a validated license is required, see Secs. 748.2 and 
748.4(g).
---------------------------------------------------------------------------

    (i) Ordered by the person in command or the owner or agent of the 
vessel or plane to which they are consigned;
    (ii) Intended to be used or consumed on board such vessel or plane 
and necessary for its proper operation;
    (iii) In usual and reasonable kinds and quantities during times of 
extreme need; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration 
(SED) is filed with the carrier, except that an SED is not required 
when any of the commodities, other than fuel, is exported by U.S. 
airlines to their own aircraft abroad for their use.
    (2) Exports to U.S. or Canadian airline's installation or agent. 
Exports of the commodities set forth in paragraph (e) of this section, 
except fuel, may be made to a U.S. or Canadian airline's<SUP>3 
installation or agent in any foreign destination except Cuba, North 
Korea, or Country Group D:1 (excluding the PRC and Romania), (see 
Supplement No. 1 to part 740) provided such commodities are all of the 
following:

    \3\See Part 772 for definitions of United States and Canadian 
airlines.
---------------------------------------------------------------------------

    (i) Ordered by a U.S. or Canadian airline and consigned to its own 
installation or agent abroad;
    (ii) Intended for maintenance, repair, or operation of aircraft 
registered in either the United States or Canada, and necessary for the 
aircraft's proper operation, except where such aircraft is located in, 
or owned, operated or controlled by, or leased or chartered to, Cuba, 
North Korea or Country Group D:1 (excluding the PRC) (see Supplement 
No. 1 to part 740) or a national of such country;
    (iii) In usual and reasonable kinds and quantities; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration 
(SED) is filed with the carrier, except that an SED is not required 
when any of these commodities is exported by U.S. airlines to their own 
installations and agents abroad for use in their aircraft operations.
    (3) Applicable commodities. This paragraph (d) applies to the 
following commodities, subject to the provisions in paragraph (d)(1) 
and (d)(2) of this section:

    Note: For fuel and related commodities, refer to short supply 
controls in part 754 of this subchapter;

    (i) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements;
    (ii) Medical and surgical supplies;
    (iii) Food stores;
    (iv) Slop chest articles;
    (v) Saloon stores or supplies; and
    (vi) Equipment and spare parts.


Sec. 740.14  International safeguards (SAF).

    (a) Scope. This License Exception, designated License Exception 
SAF, authorizes exports to the International Atomic Energy Agency 
(IAEA) and the European Atomic Energy Community (Euratom), and 
reexports by IAEA and Euratom for official international safeguard use, 
as follows:
    (1) Commodities consigned to the IAEA at its headquarters in 
Vienna, or field offices in Toronto, Ontario, Canada or Tokyo, Japan 
for official international safeguards use. The IAEA is an international 
organization that establishes and administers safeguards designed to 
ensure that special nuclear materials and other related nuclear 
facilities, services, and information are not diverted from peaceful 
purposes to non-peaceful purposes.
    (2) Commodities consigned to the Euratom Safeguards Directorate in 
Luxembourg, Luxembourg for official international safeguards use. 
Euratom is an international organization of European countries with 
headquarters in Luxembourg. Euratom establishes and administers 
safeguards designed to ensure that special nuclear materials and other 
related nuclear facilities, services, and information are not diverted 
from peaceful purposes to non-peaceful purposes.
    (3) Commodities consigned to IAEA or Euratom may be reexported to 
any country for IAEA or Euratom international safeguards use provided 
that IAEA or Euratom maintains control of or otherwise safeguards the 
commodities and returns the commodities to the locations described in 
paragraphs (a)(1) and (a)(2) of this section when they become obsolete, 
are no longer required, or are replaced.
    (4) Commodity shipments may be made by commercial companies under 
direct contract with IAEA or Euratom, or by Department of Energy 
National Laboratories as directed by the Department of State or the 
Department of Energy.
    (5) The monitoring functions of IAEA and Euratom are not subject to 
the restrictions on prohibited nuclear activities described in 
Sec. 744.2(a) of this subchapter.
    (6) When commodities originally consigned to IAEA or Euratom are no 
longer in IAEA or Euratom official safeguards use, such commodities may 
only be disposed of in accordance with the regulations in this 
subchapter.
    (b) Exclusions. No supercomputers may be exported under this 
License Exception.


Sec. 740.15  Governments (GOV).

    (a) Scope. This License Exception, designated License Exception 
GOV, authorizes exports and reexports of the items listed in paragraph 
(b) of this section to personnel and agencies of the U.S. Government or 
agencies of cooperating governments.
    (b) Eligibility--(1) Items for personal use by personnel and 
agencies of the U.S. Government. License Exception GOV is available for 
items in quantities sufficient only for the personal use of members of 
the U.S. Armed Forces or civilian personnel of the U.S. Government 
(including U.S. representatives to public international organizations), 
and their immediate families and servants. Items for personal use 
include household effects, food, beverages, and other daily 
necessities.
    (2) Items for official use by personnel and agencies of the U.S. 
Government. GOV is available for items consigned to and for the 
official use of any agency of the U.S. Government.
    (3) Items for official use within national territory by agencies of 
cooperating governments. GOV is available for all items except 
supercomputers consigned to and for the official use of any agency of a 
cooperating government within the territory of any cooperating 
government.
    (4) Diplomatic and consular missions of a cooperating government. 
GOV is [[Page 25308]] available for all items except supercomputers 
consigned to and for the official use of a diplomatic or consular 
mission of a cooperating government located in any country in Country 
Group B. (See Supplement No. 1 to part 740.)
    (c) Definitions. (1) ``Agency of the U.S. Government'' includes all 
civilian and military departments, branches, missions, government-owned 
corporations, and other agencies of the U.S. Government, but does not 
include such national agencies as the American Red Cross or 
international organizations in which the United States participates 
such as the Organization of American States. Therefore, shipments may 
not be made under this License Exception to these non-government 
national or international agencies, except as provided in (b)(1) of 
this section for U.S. representatives to these organizations.
    (2) ``Agency of a cooperating government'' includes all civilian 
and military departments, branches, missions, and other governmental 
agencies of a cooperating national government. Cooperating governments 
are the national governments of countries listed in Country Group A:1 
(COCOM Successor Regime) (see Supplement No. 1 to part 740) and the 
national governments of Argentina, Austria, Finland, Ireland, Korea 
(Republic of), Singapore, Sweden, and Switzerland.


Sec. 740.16  Gift parcels (GFT).

    (a) Scope. This License Exception, designated License Exception 
GFT, is established to authorize exports and reexports of gift parcels 
by an individual (donor) addressed to an individual, or a religious, 
charitable or educational organization (donee) located in any 
destination for the use of the donee or the donee's immediate family 
(and not for resale). The gift parcel must be provided free of charge 
to the donee. However, payment by the donee of any handling charges or 
of any fees levied by the importing country (e.g., import duties, 
taxes, etc.) is not considered to be a cost to the donee for purposes 
of this definition of ``gift parcel.''<SUP>4

    \4\Many foreign countries permit the entry, duty-free, of gift 
parcels that conform to regulations regarding contents and marking. 
To secure this advantage, the sender should show the words ``U.S.A. 
Gift Parcel'' on the addressee side of the package and on any 
required customs declarations. Information regarding the foreign 
postal regulations is available at local post offices. Senders of 
gift parcels who wish information regarding import duties of a 
foreign country should contact the nearest Commercial Office, 
Consulate or Embassy of the country concerned.

    Note: A gift parcel, within the context of this License 
Exception, does not include multiple parcels exported in a single 
shipment for delivery to individuals residing in a foreign country. 
Such multiple gift parcels, if subject to the General Prohibitions 
described in Sec. 734.2(b) of this subchapter, must be licensed by 
BXA. (See Sec. 748.9(e) of this subchapter for licensing of multiple 
---------------------------------------------------------------------------
gift parcels).

    (b) Commodity, value and other limitations--(1) Eligible 
commodities. The commodities eligible for this License Exception are as 
follows:
    (i) The commodity must not be controlled for Chemical and 
Biological Weapons (CB), Missile Technology (MT), National Security 
(NS), or Nuclear Proliferation (NP) (See Commerce Control List, part 
774 of this subchapter.)
    (ii) Type and quantity. The commodity must be of a type and in 
quantities normally given as gifts between individuals.
    (A) For Cuba, the only commodities that may be included in a gift 
parcel are the following items from Supplement No. 1 to part 746 of 
this subchapter: food, vitamins, seeds, medicines, medical supplies and 
devices, hospital supplies and equipment, equipment for the 
handicapped, clothing, personal hygiene items, veterinary medicines and 
supplies, fishing equipment and supplies, soap-making equipment, and in 
addition receive-only radio equipment for reception of commercial/civil 
AM/FM and short wave publicly available frequency bands, and batteries 
for such equipment.
    (B) For all other destinations, eligible commodities include all 
items described in paragraph (b)(2)(ii)(A) of this section as well as 
all other items normally sent as gifts. Gold bullion, gold taels, and 
gold bars are prohibited as are items intended for resale or reexport.

    Example. A watch or piece of jewelry is normally sent as a gift. 
However, multiple watches, either in one package or in subsequent 
shipments, would not quality for such gift parcels because the 
quantity exceeds that normally given between individuals. Similarly, 
a sewing machine or bicycle, within the dollar limits of this 
License Exception, may be an appropriate gift. However, subsequent 
shipments of the same item to the same donee would not be a gift 
normally given between individuals.

    (C) For purposes of paragraph (b)(2)(ii) of this section, clothing 
is appropriate, except that export of military wearing apparel to 
Country Group D:1 or E:2 under this License Exception is specifically 
prohibited, regardless of whether all distinctive U.S. military 
insignia, buttons, and other markings are removed.
    (2) Import requirements. The commodities must be acceptable in type 
and quantity by the recipient country for import as gifts. Commodities 
exceeding the import limits may not be included in gift parcels.
    (3) Frequency. Except for gift parcels of food to Cuba, not more 
than one gift parcel may be sent from the same donor to the same donee 
in any one calendar month. Parties seeking authorization to exceed this 
limit due to compelling humanitarian concerns (e.g., gifts of medicine 
to relatives) should submit a license application (BXA-748P) with 
complete justification.
    (4) Value. The combined total domestic retail value of all 
commodities included in a gift parcel may not exceed $400, except for 
gift parcels to Cuba where the value of non-food items may not exceed 
$200. There is no dollar value limit on food contained in a gift parcel 
to Cuba.
    (c) How to export gift parcels. (1) A gift parcel must be sent 
directly to the donee by the individual donor, or for such donor by a 
commercial or other gift-forwarding service or organization. Each gift 
parcel must show, on the outside wrapper, the name and address of the 
donor, as well as the name and address of the donee, regardless of 
whether sent by the donor or by a forwarding service.
    (2) Each parcel must have the notation ``GIFT--Export License Not 
Required'' written on the addressee side of the package and the symbol 
``GFT'' written on any required customs declaration.


Sec. 740.17  Operating technology and software (OTS).

    A License Exception designated License Exception OTS is established 
to permit exports and reexports of operation technology and software.
    (a) Scope. ``Operation technology'' is the minimum technology 
necessary for the installation, operation, maintenance (checking), and 
repair of those products that are lawfully exported or reexported under 
a License Exception or license. The ``minimum necessary'' operation 
technology does not include technology for development or production 
and includes use technology only to the extent required to ensure safe 
and efficient use of the product. Individual entries in the software 
and technology subcategories of the CCL may further restrict the export 
or reexport of operation technology under this general authorization.
    (b) Provisions and Destinations--(1) Provisions. Operation software 
may be exported or reexported under License Exception OTS provided that 
both of the following conditions are met:
    (i) The operation software is the minimum necessary to operate 
[[Page 25309]] equipment authorized for export or reexport; and
    (ii) The operation software is in object code.
    (2) Destinations. Operation software and technology may be exported 
or reexported to any destination to which the equipment for which it is 
required has been or is being legally exported or reexported.


Sec. 740.18  Sales technology (STS).

    A License Exception designated License Exception STS is established 
to authorize exports and reexports of sales technology.
    (a) Scope. ``Sales technology'' is defined as data supporting a 
prospective or actual quotation, bid, or offer to sell, lease, or 
otherwise supply any item.
    (b) Provisions and destinations. (1) Provisions. Sales technology 
may be exported or reexported under License Exception STS provided 
that:
    (i) The technology is a type customarily transmitted with a 
prospective or actual quotation, bid, or offer in accordance with 
established business practice; and
    (ii) Neither the export nor the reexport will disclose the detailed 
design, production, or manufacture technology, or the means of 
reconstruction, of either the quoted item or its product. The purpose 
of this limitation is to prevent disclosure of technology so detailed 
that the consignee could reduce the technology to production.
    (2) Destinations. Sales technology may be exported or reexported to 
all destinations.

    Note: Neither this authorization nor its use means that the U.S. 
Government intends, or is committed, to approve a license 
application for any commodity, plant, software, or technology that 
may be the subject of the transaction to which such quotation, bid, 
or offer relates. Exporters are advised to include in any 
quotations, bids, or offers, and in any contracts entered into 
pursuant to such quotations, bids, or offers, a provision relieving 
themselves of liability in the event that a license (when required) 
is not approved by the Bureau of Export Administration.


Sec. 740.19  Software updates (SUD).

    A License Exception designated License Exception SUD is established 
to authorize exports and reexports of software updates that are 
intended for and are limited to correction of errors (``fixes'' to 
``bugs'') in software lawfully exported or reexported under a License 
Exception or license (original software). Such software updates may be 
exported only to the same consignee for whom the original software was 
authorized by a license or License Exception, and such software updates 
may not enhance the functional capacities of the original software. 
Such software updates may be exported or reexported to any destination 
to which the software for which they are required has been legally 
exported or reexported.


Sec. 740.20  General Software Note (GSN).

    A License Exception designated License Exception GSN is established 
to authorize exports and reexports of software subject to the General 
Software Note (see Supplement No. 2 to part 774 of this subchapter).
    (a) Scope. License Exception GSN is available for ``mass market'' 
software as described in the General Software Note and referenced in 
this section.
    (b) Provisions and destinations--(1) Destinations. GSN is available 
to all destinations except Cuba, Iran, Libya, North Korea, and Syria.
    (2) Provisions. GSN is available for software that is generally 
available to the public by being:
    (i) Sold from stock at retail selling points, without restriction, 
by means of:
    (A) Over the counter transactions;
    (B) Mail order transactions; or
    (C) Telephone call transactions; and
    (ii) Designed for installation by the user without further 
substantial support by the supplier.


Sec. 740.21  Technology and software under restriction (TSR).

    (a) A License Exception designated License Exception TSR is hereby 
established to permit exports and reexports of technology and software. 
Individual technology and software entries on the CCL indicate 
eligibility for this License Exception by the symbol TSR. A written 
assurance is required from the consignee before exporting under this 
License Exception, and this License Exception authorizes exports only 
to the destinations in Country Group B. (See Supplement No. 1 to part 
740.)
    (1) Required assurance for export of technology. No export or 
reexport of technology is authorized under this License Exception until 
the exporter has received from the importer a written assurance that, 
without a BXA license or License Exception, the importer will neither:
    (i) Reexport the technology to or release the technology to a 
national of a country in Country Groups D:1 or E:2;
    (ii) Export to Country Groups D:1 or E:2 the direct product of the 
technology, if such foreign produced direct product is subject to 
national security controls as identified on the CCL (See General 
Prohibition Three, Sec. 732.2(b)(3) of this subchapter); nor
    (iii) If the direct product of the technology is a complete plant 
or any major component of a plant, export to Country Groups D:1 or E:2 
the direct product of the technology, if such foreign produced direct 
product is subject to national security controls as identified on the 
CCL or is subject to State Department controls under the U.S. Munitions 
List (22 CFR part 121).
    (2) Required assurance for export of software. No export or 
reexport of software is authorized under this License Exception until 
the exporter has received from the importer a written assurance that, 
without a BXA license or License Exception, the importer will neither:
    (i) Reexport the software to or release the source code for the 
software to a national of a country in Country Groups D:1 or E:2; nor
    (ii) Export to Country Groups D:1 and E:2 the direct product of the 
software, if such foreign produced direct product is subject to 
national security controls as identified on the CCL. (See General 
Prohibition Three at Sec. 732.2(b)(3) of this subchapter).
    (3) Form of written assurance. The required assurance may be made 
in the form of a letter or any other written communication from the 
importer, or the assurance may be incorporated into a licensing 
agreement that specifically includes the appropriate assurances. An 
assurance included in a licensing agreement is acceptable only if the 
agreement specifies that the assurance will be honored even after the 
expiration date of the licensing agreement. If such a written assurance 
is not received, this License Exception is not applicable and a license 
is required. The license application must include a statement 
explaining why assurances could not be obtained.
    (4) Other license exceptions. The requirements in this License 
Exception do not apply to the export of technology or software under 
other License Exceptions, or to the export of technology or software 
included in an application for the foreign filing of a patent, provided 
the filing is in accordance with the regulations of the U.S. Patent 
Office.
    (b) Reserved.


Sec. 740.22  Additional permissive reexports (APR).

    (a) Scope. This License Exception, designated License Exception 
APR, allows the following reexports.
    (b) Permissive reexports. (1) Reexports to a destination to which 
direct shipment from the United States is authorized under an unused 
outstanding license may be made under the terms of that license. Such 
reexports shall be recorded in the same manner as 
[[Page 25310]] exports are recorded, regardless of whether the license 
is partially or wholly used for reexport purposes. (See part 762 of 
this subchapter for recordkeeping requirements.)
    (2) Reexports of any item from Canada that, at the time of 
reexport, may be exported directly from the United States to the new 
country of destination under any License Exception.
    (3) Reexports (return) to the United States of any item. If the 
reexporting party requests written authorization because the government 
of the country from which the reexport will take place requires formal 
U.S. Government approval, such authorization will generally be given.
    (4) Reexports from a foreign destination to Canada of any item if 
the item could be exported to Canada without a license.
    (5) Reexports between Switzerland and Liechtenstein.
    (6) Shipments of foreign-made products that incorporate U.S.-origin 
components may be accompanied by U.S.-origin controlled spare parts, 
provided that they do not exceed 10 percent of the value of the 
foreign-made product. (See Sec. 732.4 of this subchapter.)

                                                 BILLING CODE 3510-DT-P
[[Page 25311]]

[GRAPHIC][TIFF OMITTED]TP11MY95.007



BILLING CODE 3510-DT-C
[[Page 25312]]

Country Group B

Countries

Afghanistan
Algeria
Andorra
Angola
Antiqua
Argentina
Australia
Austria
Bahamas
Bahrain
Bangladesh
Barbados
Barbuda
Belgium
Belize
Benin
Bermuda
Bhutan
Bolivia
Bosnia & Herzegovina
Botswana
Brazil
Brunei
Burkina Faso
Burma
Burundi
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
Colombia
Comoros
Congo
Costa Rica
Cote d'Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritea
Ethiopia
Fiji
Finland
France
Gabon
Gambia, The
Germany
Ghana
Greece
Greenland
Grenada
Grenadines, The
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kenya
Kiribati
Korea, South
Kuwait
Lebanon
Lesotho
Liberia
Liechtenstein
Luxembourg
Macedonia, the Former Yugoslav Republic of
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Maruitania
Mauritius
Mexico
Micronesia, Federated States of
Monaco
Morocco
Mozambique
Namibia
Nauru
Nepal
Netherlands
Nevis
New Zealand
Nicaragua
Niger
Nigeria
Norway
Oman
Pakistan
Palau
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Principe
Puerto Rico
Qatar
Saint Kitts
Saint Lucia
Saint Vincent
San Marino
Sao Tome
Saudi Arabia
Senegal
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
Spain
Sri Lanka
Surinam
Swaziland
Sweden
Switzerland
Taiwan
Tanzania
Thailand
Tobago
Togo
Tonga
Trinidad
Tunisia
Turkey
Tuvalu
Uganda
United Arab Emirates
United Kingdom
United States
Uruguay
Vanuatu
Vatican City
Venezuela
Western Sahara
Western Samoa
Yemen
Zaire
Zambia
Zimbabwe

Country Group C

[Reserved]

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PART 742--CONTROL POLICY--CCL BASED CONTROLS

Sec.
742.1  Introduction.
742.2  Proliferation of chemical and biological weapons.
742.3  Nuclear non-proliferation.
742.4  National security.
742.5  Missile technology.
742.6  Regional stability.
742.7  Crime control.
742.8  Anti-Terrorism: Iran.
742.9  Anti-Terrorism: Syria.
742.10 Anti-Terrorism: Sudan.
742.11 [Reserved].
742.12 Supercomputers.
742.13 Communications intercepting devices.

Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
Biological Weapons

Supplement No. 2 to Part 742--Countries That Are Party to the Nuclear 
Non-Proliferation Treaty and/or the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco)

Supplement No. 3 to Part 742--Iran, Sudan and Syria Contract Sanctity 
Dates and Related Policies

Supplement No. 4 to Part 742--Supercomputers; Security Conditions and 
Safeguard Plans, Definitions, and Related Information

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 742.1  Introduction.

    (a) Scope. This Part sets forth the controls and the licensing 
policies for all the items that are listed on the Commerce Control List 
(CCL), except the following:
    (1) Exports and reexports involving Cuba, Libya, North Korea, Iraq, 
and the Federal Republic of Yugoslavia (Serbia and Montenegro). This 
Part does not cover controls and licensing policies that apply to 
exports and reexports to embargoed destinations. If you are exporting 
or reexporting to Cuba, Libya, North Korea, Iraq, or the Federal 
Republic of Yugoslavia (Serbia and Montenegro) you should first review 
part 746 of this subchapter, Embargoes and Other Special Controls. The 
Country Chart (Supplement No. 1 to part 738 of this subchapter) will 
direct you to part 746 of this subchapter for these countries.
    (2) Controls implementing U.N. sanctions. The United Nations 
imposes sanctions, short of complete embargoes, against certain 
countries and destinations which may result in controls that supplement 
those otherwise maintained under the EAR for that particular country. 
When the Country Chart (Supplement No. 1 to part 738 of this 
subchapter) has a check in UN Column No. 1, you should review part 746 
of this subchapter, Embargoes and Other Special Controls, for any 
supplemental controls that may apply to exports and reexports involving 
these countries.
    (3) Commodities that are covered under part 754 of this subchapter, 
Short Supply Controls. This Part does not address controls and 
licensing policies for commodities controlled for short supply reasons. 
These commodities contain the symbol ``SS'' in the ``Reason for 
Control'' part of the ``License Requirements'' section of the 
applicable ECCNs on the CCL. These ECCNs are the following: 0A80 
(Horses for export by sea); 1C80 (Inorganic chemicals); 1C81 (Crude 
petroleum, including reconstituted crude petroleum, tar sands, and 
crude shale oil); 1C82 (Other petroleum products); 1C83 (Natural gas 
liquids and other natural gas derivatives); 1C84 (Manufactured gas and 
synthetic natural gas (except when commingled with natural gas and thus 
subject to export authorization from the Department of Energy); and 
1C88 (Western red cedar (thuja plicata) logs and timber, and rough, 
dressed and worked lumber containing wane).
    (b) This part lists all the reasons for control reflected in the 
Country Chart in Supplement No. 1 to part 738 of this subchapter except 
UN sanctions and Short Supply. In addition, it includes licensing 
requirements and licensing policy for communications intercepting 
devices and supercomputers, which are not reflected on the Chart. This 
part is organized so that it lists each reason for control in the order 
(reading left to right) in which the control appears on the Chart. In 
listing the reasons for control and licensing policies, this part 
includes a description of any multilateral regime under which specific 
controls are maintained and any applicable contract sanctity provisions 
that may apply to specific controls.
    (c) List of controls described in this part. Specifically, this 
part describes controls and licensing policies that further the U.S. 
policies relating to the following:
    (1) Chemical and biological weapons (CB). (Sec. 742.2 of this part)
    (2) Nuclear non-proliferation (NP). (Sec. 742.3 of this part)
    (3) National security (NS). (Sec. 742.4 of this part)
    (4) Missile technology (MT). (Sec. 742.5 of this part)
    (5) Regional stability (RS). (Sec. 742.6 of this part)
    (6) Crime control (CC). (Sec. 742.7 of this part)
    (7) Anti-terrorism (AT): Iran. (Sec. 742.8 of this part)
    (8) Anti-terrorism (AT): Syria. (Sec. 742.9 of this part)
    (9) Supercomputers (SC). (Sec. 742.12 of this part)
    (10) Communications intercepting devices (CI). (Sec. 742.13 of this 
part)
    (d) Overlapping license policies. Many items are specified on the 
CCL as being subject to more than one type of control (e.g., national 
security, missile technology, nuclear non-proliferation, regional 
stability). In addition, applications for all items on the CCL, other 
than those controlled for short supply reasons, may be reviewed for 
missile technology (see Sec. 742.5(b)(3) of this part), nuclear non-
proliferation (see Sec. 742.3(b)(2) of this part), or chemical and 
biological weapons (see Sec. 742.3(b)(3) of this part) and all national 
security items may be reviewed for anti-terrorism reasons (see 
Secs. 742.8(b) and 742.9(b) of this part). Your application for a 
license will be reviewed under all applicable licensing policies. A 
license will be issued only if an application can be approved under all 
applicable licensing policies.


Sec. 742.2  Proliferation of chemical and biological weapons.

    (a) License requirements. The following controls are maintained in 
support of the U.S. foreign policy of opposing the proliferation and 
illegal use of chemical and biological weapons:
    (1) If CB Column 1 of the Country Chart (Supplement No. 1 to part 
738 of this subchapter) is indicated in the appropriate ECCN, a license 
is required to all destinations except Canada for the following:
    (i) Viruses, viroids, bacteria, fungi, and protozoa identified in 
ECCN 1C61 (Microorganisms and toxins).
    (ii) Technology for the production and or disposal of 
microbiological commodities described in paragraph (a)(1)(i) of this 
section (1E61).
    (2) If CB Column 2 of the Country Chart (Supplement No. 1 to part 
738 of this subchapter) is indicated in the appropriate ECCN, a license 
is required to all destinations except countries in Country Group A:3 
(see Supplement No. 1 to part 740 of this subchapter) (Australia Group 
members) for the following:
    (i) Chemicals identified in ECCN 1C60 (precursor and intermediate 
chemicals used in the production of chemical warfare agents).
    (A) This licensing requirement includes chemical mixtures 
containing any chemicals identified in ECCN 1C60, [[Page 25316]] except 
as specified in Note 2 to that ECCN.
    (B) This licensing requirement does not include chemical compounds 
created with any chemicals identified in ECCN 1C60, unless those 
compounds are also identified in ECCN 1C60.
    (ii) Software (ECCN 1D60) for process control that is specifically 
configured to control or initiate production of the chemical precursors 
controlled by ECCN 1C60.
    (iii) Technology (ECCN 1E60) for the production and/or disposal of 
chemical precursors described in ECCN 1C60, and technology involving 
the following for facilities designed or intended to produce chemicals 
described in ECCN 1C60:
    (A) Overall plant design:
    (B) Design, specification, or procurement of equipment;
    (C) Supervision of construction, installation, or operation of 
complete plant or components thereof;
    (D) Training of personnel;
    (E) Consultation on specific problems involving such facilities.
    (3) If CB Column 3 of the Country Chart (Supplement No. 1 to part 
738 of this subchapter) is indicated in the appropriate ECCN, a license 
is required to Country Group D:3 (see Supplement No. 1 to part 740 of 
this subchapter) for the following:
    (i) Equipment and materials identified in ECCN 1B70 on the CCL, 
which can be used in the production of chemical weapons precursors or 
chemical warfare agents, and equipment and materials identified in ECCN 
1B71, which can be used in the production of biological agents.
    (ii) Technology for production of the commodities covered in 
paragraph (a)(3)(i) of this section (ECCN 1E70).
    (b) Licensing policy. (1) License applications for the items 
described in paragraph (a) of this section will be considered on a 
case-by-case basis to determine whether the export or reexport would 
make a material contribution to the design, development, production, 
stockpiling, or use of chemical or biological weapons. When an export 
or reexport is deemed to make such a contribution, the license will be 
denied.
    (2) The following factors are among those that will be considered 
to determine what action should be taken on individual license 
applications:
    (i) The specific nature of the end-use;
    (ii) The significance of the export and reexport in terms of its 
contribution to the design, development, production, stockpiling, or 
use of chemical or biological weapons;
    (iii) The non-proliferation credentials of the importing country;
    (iv) The types of assurances or guarantees against design, 
development, production, stockpiling, or use of chemical or biological 
weapons that are given in a particular case; and
    (v) The existence of a pre-existing contract.
    (3) BXA will review license applications in accordance with the 
licensing policy described in paragraph (b)(2) of this section for 
items not described in paragraph (a) of this section that:
    (i) Require a license for reasons other than ``short supply'';
    (ii) Are destined to any country except countries in Country Group 
A:3 (see Supplement No. 1 to part 740 of this subchapter) (Australia 
Group members); and
    (iii) Could be destined for the design, development, production, 
stockpiling, or use of chemical or biological weapons, or for a 
facility engaged in such activities.
    (c) Contract sanctity. Contract sanctity dates are set forth in 
Supplement No. 1 to part 742. Applicants who wish that a pre-existing 
contract be considered in reviewing their license applications must 
submit documentation sufficient to establish the existence of such a 
contract.
    (d) Australia Group. The Australia Group, a multilateral body that 
works to halt the spread of chemical and biological weapons, has 
developed common control lists of items specifically related to 
chemical and biological weapons. Australia Group members are listed in 
Country Group A:3 (see Supplement No. 1 to part 740 of this 
subchapter). The list of items controlled in paragraph (a) of this 
section are consistent with lists agreed to in the Australia Group.


Sec. 742.3  Nuclear non-proliferation.

    (a) License requirements. Section 309(c) of the Nuclear Non-
Proliferation Act of 1978 requires BXA to identify items subject to the 
EAR that could be of significance for nuclear explosive purposes if 
used for activities other than those authorized at the time of export 
or reexport. ECCNs on the CCL that include the symbols ``NP 1'' or ``NP 
2'' in the ``Country Chart'' column of the ``License Requirements'' 
section identify items that could be of significance for nuclear 
explosive purposes and are therefore subject to licensing requirements 
under this part and under section 309(c) of the Nuclear Non-
Proliferation Act of 1978. These items are referred to as ``The Nuclear 
Referral List'' and are subject to the following licensing 
requirements:
    (1) If NP Column 1 of the Country Chart (Supplement No. 1 to part 
738 of this subchapter) is indicated in the appropriate ECCN, a license 
is required to all destinations, except Canada.
    (2) If NP Column 2 of the Country Chart (Supplement No. 1 to part 
738 of this subchapter) is indicated in the appropriate ECCN, a license 
is required to Country Group D:2 (see Supplement No. 1 to part 740 of 
this subchapter).
    (3) Other nuclear-related license requirements are described in 
Secs. 744.3 and 744.4 of this subchapter.
    (b) Licensing policy. (1) To implement the controls in paragraph 
(a) of this section, the following factors are among those used to 
determine what action should be taken on individual applications:
    (i) Whether the items to be transferred are appropriate for the 
stated end-use and whether that stated end-use is appropriate for the 
end-user;
    (ii) The significance for nuclear purposes of the particular item;
    (iii) Whether the items to be exported or reexported are to be used 
in research on, or for the development, design, manufacture, 
construction, operation, or maintenance of, any reprocessing or 
enrichment facility;
    (iv) The types of assurances or guarantees given against use for 
nuclear explosive purposes or proliferation in the particular case;
    (v) Whether any party to the transaction has been engaged in 
clandestine or illegal procurement activities;
    (vi) Whether an application for a license to export or reexport to 
the end-user has previously been denied, or whether the end-user has 
previously diverted items received under a general license, a License 
Exception, or a validated license to unauthorized activities;
    (vii) Whether the export or reexport would present an unacceptable 
risk of diversion to a nuclear explosive activity or unsafeguarded 
nuclear fuel-cycle activity described in Sec. 744.2(a) of this 
subchapter; and
    (viii) The non-proliferation credentials of the importing country, 
based on consideration of the following factors:
    (A) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco) (see Supplement 
No. 2 to part 742), or to a similar international legally-binding 
nuclear non-proliferation agreement.
    (B) Whether the importing country has all of its nuclear 
activities, facilities, or installations that are operational, 
[[Page 25317]] being designed, or under construction under 
International Atomic Energy Agency (IAEA) safeguards or equivalent full 
scope safeguards;
    (C) Whether there is an agreement for cooperation in the civil uses 
of atomic energy between the U.S. and the importing country;
    (D) Whether the actions, statements, and policies of the government 
of the importing country are in support of nuclear nonproliferation and 
whether that government is in compliance with its international 
obligations in the field of non-proliferation;
    (E) The degree to which the government of the importing country 
cooperates in non-proliferation policy generally (e.g., willingness to 
consult on international non-proliferation issues);
    (F) Information on the importing country's nuclear intentions and 
activities.
    (2) In addition, BXA will review license applications in accordance 
with the licensing policy described in paragraph (b) of this section 
for items not on the Nuclear Referral List that:
    (i) Require a license on the CCL for reasons other than ``short 
supply;'' and
    (ii) Are intended for a nuclear related end-use or end-user.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) Nuclear Suppliers Group. Most items on the Nuclear Referral 
List that require a license under NP Column No. 1 on the Country Chart 
(see Supplement No. 1 to part 738 of this subchapter) are contained in 
the Annex to the ``Guidelines for Transfers of Nuclear-Related Dual-Use 
Equipment, Material, and Related Technology'' (the Annex), as published 
by the International Atomic Energy Agency in INFCIRC/254/Revision 1/
Part 2. The adherents to INFCIRC/254/Revision 1/Part 2, which includes 
the Nuclear Suppliers Guidelines, have agreed to establish export 
licensing procedures for the transfer of items identified in the Annex. 
Items that are listed as requiring a license under NP Column No. 2 on 
the Country Chart (see Supplement No. 1 to part 738 of this subchapter) 
are not included in the Annex and are controlled only by the United 
States.


Sec. 742.4  National security.

    (a) License requirements. It is the policy of the United States to 
restrict the export and reexport of items that would make a significant 
contribution to the military potential of any other country or 
combination of countries that would prove detrimental to the national 
security of the United States. Accordingly, if NS Column 1 of the 
Country Chart (see Supplement No. 1 to part 738 of this subchapter) is 
indicated in the appropriate ECCN, a license is required for exports 
and reexports to all destinations, except Canada, for all items in 
ECCNs on the CCL that include NS Column 1 in the Country Chart column 
of the ``License Requirements'' section. The purpose of the controls is 
to ensure that these items do not make a contribution to the military 
potential of countries in Country Group D:1 (see Supplement No. 1 to 
part 740 of this subchapter) that would prove detrimental to the 
national security of the United States.
    (b) Licensing policy. (1) The policy for national security 
controlled items exported or reexported to any country except a country 
in Country Group D:1 (see Supplement No. 1 to Part 740 of this 
subchapter) is to approve applications unless there is a significant 
risk that the items will be diverted to a country in Country Group D:1.
    (2) Except as described for certain countries in paragraphs (b)(5) 
through (8) of this section, the general policy for exports and 
reexports of items to Country Group D:1 (see Supplement No. 1 to part 
740 of this subchapter) is to approve applications when BXA determines, 
on a case-by-case basis, that the items are for civilian use or would 
otherwise not make a significant contribution to the military potential 
of the country of destination that would prove detrimental to the 
national security of the United States.
    (3) To permit such policy judgments to be made, each application is 
reviewed in the light of prevailing policies with full consideration of 
all aspects of the proposed transaction. The review generally includes:
    (i) An analysis of the kinds and quantities of items to be shipped;
    (ii) Their military or civilian uses;
    (iii) The unrestricted availability abroad of the same or 
comparable items;
    (iv) The country of destination;
    (v) The ultimate end-users in the country of destination; and
    (vi) The intended end-use.
    (4) Although each proposed transaction is considered individually, 
items described in Advisory Notes on the Commerce Control List are more 
likely to be approved than others.
    (5) In recognition of efforts made to adopt safeguard measures for 
exports and reexports, Bulgaria, Latvia, Kazakhstan, Lithuania, 
Mongolia, and Russia are accorded enhanced favorable consideration 
licensing treatment.
    (6) Romania has been determined to present a lesser strategic 
threat, and has adopted safeguard measures to protect against the 
diversion of national security controlled items. In recognition of 
these facts, the Commerce Control List includes several Advisory Notes 
that indicate likelihood of approval or favorable consideration for 
export to satisfactory end-users in Romania. Items not eligible for 
favorable consideration will be reviewed on a case-by-case basis.
    (7) The general policy for Cambodia and Laos is to approve license 
applications when BXA determines, on a case-by-case basis, that the 
items are for an authorized use in Cambodia or Laos and are not likely 
to be diverted to another country or use contrary to the national 
security or foreign policy controls of the United States.
    (8) For the People's Republic of China, the general licensing 
policy is to approve applications, except that for those items that 
would make a direct and significant contribution to nuclear weapons and 
their delivery systems, electronic and anti-submarine warfare, 
intelligence gathering, power projection, and air superiority receive 
extended review or denial. Each application will be considered 
individually. Items may be approved even though they may contribute to 
Chinese military development or the end-user or end-use is military.

    Note: The Advisory Notes in the CCL headed ``Note for the 
People's Republic of China'' provide guidance on equipment likely to 
be approved more rapidly for China.

    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) Interim regime. The licensing requirements described in 
paragraph (a) of this section reflect multilaterally agreed lists that 
were in effect when the Coordinating Committee (COCOM) ceased operating 
in March 1994. COCOM members agreed to maintain controls based on this 
list on an interim basis, pending the development of new lists and 
policies to be applied by the COCOM successor regime.


Sec. 742.5  Missile technology.

    (a) License requirements. (1) In support of U.S. foreign policy to 
limit the proliferation of missiles, a license is required to export 
and reexport items related to the design, development, production, or 
use of missiles. These items are identified in ECCNs on the CCL as MT 
Column No. 1 in the Country Chart column of the ``License 
Requirements'' section. Licenses for these items are required to all 
destinations, except Canada, as indicated by MT Column 1 of the Country 
Chart (see Supplement No. 1 to part 738 of this subchapter). 
[[Page 25318]] 
    (2) The term ``missiles'' is defined as rocket systems (including 
ballistic missile systems, space launch vehicles, and sounding rockets) 
and unmanned air vehicle systems (including cruise missile systems, 
target drones, and reconnaissance drones) capable of delivering at 
least 500 kilograms (kg) payload to a range of a least 300 kilometers 
(km).
    (b) Licensing policy. (1) Applications to export and reexport items 
identified in ECCNs on the CCL as MT Column No. 1 in the Country Chart 
column of the ``License Requirements'' section will be considered on a 
case-by-case basis to determine whether the export or reexport would 
make a material contribution to the proliferation of missiles. 
Applications for exports and reexports of such items contained in 
Category 7A or described by ECCN 9A21 on the CCL will be considered 
more favorably if such exports or reexports are determined to be 
destined to a manned aircraft, satellite, land vehicle, or marine 
vessel, in quantities appropriate for replacement parts for such 
applications. When an export or reexport is deemed to make a material 
contribution to the proliferation of missiles, the license will be 
denied.
    (2) The following factors are among those that will be considered 
in reviewing individual applications.
    (i) The specific nature of the end-use;
    (ii) The significance of the export and reexport in terms of its 
contribution to the design, development, production, or use of 
missiles;
    (iii) The capabilities and objectives of the missile and space 
programs of the recipient country;
    (iv) The non-proliferation credentials of the importing country;
    (v) The types of assurances or guarantees against design, 
development, production, or use of missiles that are given in a 
particular case; and
    (vi) The existence of a pre-existing contract.
    (3) Controls on other items. BXA will review license applications, 
in accordance with the licensing policy described in paragraph (b)(1) 
of this section, for items not described in paragraph (a) of this 
section that:
    (i) Require a validated license for reasons other than short 
supply; and
    (ii) Could be destined for the design, development, production, or 
use of missiles, or for a facility engaged in such activities.
    (c) Contract sanctity. The following contract sanctity dates have 
been established:
    (1) License applications for batch mixers specified in ECCN 1B28.a 
involving contracts that were entered into prior to January 19, 1990, 
will be considered on a case-by-case basis.
    (2) License applications subject to paragraphs (b) or (c) of this 
section that involve a contract entered into prior to March 7, 1991, 
will be considered on a case-by-case basis.
    (3) Applicants who wish that a pre-existing contract be considered 
in reviewing their license applications must submit documentation 
sufficient to establish the existence of a contract.
    (d) Missile Technology Control Regime. Missile Technology Control 
Regime (MTCR) members are listed in Country Group A:2 (see Supplement 
No. 1 to part 740 of this subchapter). Controls on items identified in 
paragraph (a) of this section are consistent with the list agreed to in 
the MTCR and included in the MTCR Annex.


Sec. 742.6  Regional stability.

    (a) License requirements. The following controls are maintained in 
support of U.S. foreign policy to maintain regional stability:
    (1) As indicated in the CCL and in RS Column 1 of the Country Chart 
(see Supplement No. 1 to part 738 of this Subchapter), a license is 
required to all destinations, except Canada, for items described on the 
CCL under ECCNs 6A02.a.1, a.2, a.3, or c; 6A03.b.3 and b.4; 6D21 (only 
software for development of items in 6A02.a.1, a.2, a.3 or c); 6E01 
(only technology for development of items in 6A02.a.1, a.2, a.3, and c, 
or 6A03.b.3 and b.4); 6E02 (only technology for production of items in 
6A02.a.1, a.2, a.3, or c, or 6A03.b.3 or b.4); 7D01 (only software for 
development or production of items in 7A01, 7A02, or 7A03); 7E01 (only 
technology for the development of inertial navigation systems, inertial 
equipment, and specially designed components therefor for civil 
aircraft); 7E02 (only technology for the production of inertial 
navigation systems, inertial equipment, and specially designed 
components therefor for civil aircraft); and, 7E21 (only technology for 
the development or production of inertial navigation systems, inertial 
equipment, and specially designed components therefor for civil 
aircraft).
    (2) As indicated in the CCL and in RS Column 2 of the Country Chart 
(see Supplement No. 1 to part 738 of this subchapter), a license is 
required to any destination except countries in Country Group A:1 (see 
Supplement No. 1 to part 740 of this subchapter), Iceland and New 
Zealand for military vehicles and certain commodities (specially 
designed) used to manufacture military equipment, described on the CCL 
in ECCNs 0A18.c, 1B18.a, 2B18, and 9A18.b.
    (b) Licensing policy. (1) Applications to export and reexport items 
described in paragraph (a)(1) of this section will be reviewed on a 
case-by-case basis to determine whether the export or reexport could 
contribute directly or indirectly to any country's military 
capabilities in a manner that would alter or destabilize a region's 
military balance contrary to the foreign policy interests of the United 
States.
    (2) Applications to export and reexport commodities described in 
paragraph (a)(2) of this section will generally be considered favorably 
on a case-by-case basis unless there is evidence that the export or 
reexport would contribute significantly to the destabilization of the 
region to which the equipment is destined.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining regional stability controls, 
at this time these controls are maintained only by the United States.


Sec. 742.7  Crime control.

    (a) License requirements. In support of U.S. foreign policy to 
promote the observance of human rights throughout the world, a license 
is required to export and reexport crime control and detection 
equipment, related technology and software as follows:
    (1) Crime control and detection instruments and equipment and 
related technology and software identified in the appropriate ECCNs on 
the CCL under CC Column No. 1 in the Country Chart column of the 
``License Requirements'' section. A license is required to countries 
listed in CC Column 1 (Supplement No. 1 to part 738 of this 
subchapter), i.e., all countries except those listed in Country Group 
A:1 (see Supplement No. 1 to part 740 of this subchapter) and Iceland 
and New Zealand. Items affected by this requirement are identified on 
the CCL under the following ECCNs: 0A82; 0A84 (shotguns with barrel 
length over 18 but less than 24 inches, regardless of end-user); 0E84; 
1A84; 3A80; 3A81; 3D80; 3E80; 4A03 (fingerprint computers only); 4A80; 
4D01 (for fingerprint computers only); 4D80; 4E01 (for fingerprint 
computers only); 4E80; 6A02 (police-model infrared viewers only); 6E01 
(for police-model infrared viewers only); 6E02 (for police-model 
infrared viewers only); and 9A80. [[Page 25319]] 
    (2) Shotguns with a barrel length of 24 inches or more identified 
in ECCN 0A84 on the CCL under CC Column No. 2 in the Country Chart 
column of the ``License Requirements'' section regardless of end-user 
to countries listed in CC Column 2 (Supplement No. 1 to part 738 of 
this subchapter), which are the same as those countries listed in 
Country Group D:1 (see Supplement No. 1 to part 740 of this 
subchapter).
    (3) Shotguns with barrel length over 24 inches, identified in ECCN 
0A84 on the CCL under CC Column No. 3 in the Country Chart column of 
the ``License Requirements'' if for sale or resale to police or law 
enforcement entities to countries listed in CC Column 2 (Supplement No. 
1 to part 738 of this subchapter) except countries in Country Group A:1 
(see Supplement No. 1 to part 740 of this subchapter), and Iceland and 
New Zealand.
    (b) Licensing policy. The licensing policies are as follows:
    (1) Applications for licenses to export or reexport ``specially 
designed implements of torture'' will be denied.
    (2) Applications for other items controlled under paragraph (a) of 
this section will generally be considered favorably on a case-by-case 
basis unless there is evidence that the government of the importing 
country may have violated internationally recognized human rights and 
that the judicious use of export controls would be helpful in deterring 
the development of a consistent pattern of such violations or in 
distancing the United States from such violations.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining controls on crime control and 
detection items, at this time these controls are maintained only by the 
United States.


Sec. 742.8  Anti-terrorism: Iran.

    (a) License requirements. In support of U.S. foreign policy on 
terrorism designated countries, BXA maintains two types of anti-
terrorism controls on the export and reexport of items described in 
Supplement No. 3 to part 742. Of these controls, items described in 
paragraph (a)(i) through (a)(v) of Supplement No. 3 to part 742 are 
controlled under section 6(j) of the Export Administration Act, as 
amended (EAA). Items listed in paragraph (a)(vi) through (a)(xxxviii) 
of Supplement No. 1 to part 742 are controlled under section 6(a) of 
the EAA.
    (1) If AT Column 1 or AT Column 2 of the Country Chart (Supplement 
No. 1 to part 738 of this subchapter) is indicated in the appropriate 
ECCN, a license is required for export to Iran for anti-terrorism 
purposes.
    (2) If AT Column 1 or AT Column 2 of the Country Chart (Supplement 
No. 1 to part 738 of this subchapter) is indicated in the appropriate 
ECCN, a license is required for reexport to Iran of such items, except 
for ECCNs 2A94, 3A93, 5A92, 5A95, 6A90, 6A94, 7A94, 8A92, 8A94, 9A90, 
9A92, and 9A94. In addition, items in these ECCNs are not counted as 
controlled US content for the purposes of determining license 
requirements for foreign made products containing US parts and 
components. However, the export of these items from the U.S. to any 
destination with knowledge that they will be reexported directly or 
indirectly, in whole or in part to Iran is prohibited without a 
validated license.
    (b) Licensing policy. The Iran-Iraq Arms Non-Proliferation Act 
requires BXA to deny license applications for Iran. License 
applications for which contract sanctity is established are considered 
under policies in effect prior to the enactment of that Act (for Iran 
the effective date is October 23, 1992). Otherwise, licenses for Iran 
are subject to a policy of denial. License applications for items 
reviewed under 6(a) controls will also be reviewed to determine the 
applicability of 6(j) controls to the transaction. When it is 
determined that an export or reexport could make a significant 
contribution to the military potential of Iran, including its military 
logistics capability, or could enhance Iran's ability to support acts 
of international terrorism, the appropriate committees of the Congress 
will be notified thirty days before issuance of a license to export or 
reexport such items.
    (c) Contract sanctity. Contract sanctity dates and licensing 
policies in effect prior to October 23, 1992 are listed in Supplement 
No. 3 to part 742. Applicants who wish a pre-existing contract to be 
considered must submit sufficient documentation to establish the 
existence of a contract.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining anti-terrorism controls, at 
this time these controls are maintained only by the United States.


Sec. 742.9  Anti-terrorism: Syria.

    (a) License requirements. In support of U.S. foreign policy on 
terrorism designated countries, BXA maintains two types of anti-
terrorism controls on the export and reexport of items described in 
Supplement No. 3 to part 742. Of these controls, items described in 
paragraph (a)(i) through (a)(v) of Supplement No. 3 to part 742 are 
controlled under section 6(j) of the Export Administration Act, as 
amended (EAA). Items listed in paragraph (a)(vi) through (a)(xxxviii) 
of Supplement No. 1 to part 742 are controlled under section 6(a) of 
the EAA. If AT Column 1 of the Country Chart (Supplement No. 1 to part 
738 of this subchapter) is indicated in the appropriate ECCN, a license 
is required for export and reexport to Syria for anti-terrorism 
purposes.
    (b) Licensing policy. (1) Applications for export and reexport to 
Syria of the following items will generally be denied:
    (i) Items that are controlled for chemical and biological weapons 
proliferation reasons to any destination (i.e., that contain CB Column 
1, CB Column 2, or CB Column 3 in the Country Chart column of the 
``License Requirements'' section of an ECCN on the CCL).
    (ii) Military-related items controlled for national security 
reasons to any destination containing NS Column 1 in the Country Chart 
column of the ``License Requirements'' section in an ECCN on the CCL 
and ending with the number ``18''.
    (iii) Items that are controlled for missile proliferation reasons 
to any destination (i.e., that have an MT Column 1 in the Country Chart 
column of the ``License Requirements'' section of an ECCN on the CCL).
    (iv) All aircraft (powered and unpowered), helicopters, engines, 
and related spare parts and components controlled to any destination 
for national security reasons and containing an NS in the Reason for 
Control column on the CCL; or controlled to Syria and containing an AT 
1 in the Country Chart column of the ``License Requirements'' section 
of an ECCN on the CCL.

    Note: Consistent with the general rule that applies to computing 
U.S. parts and components content incorporated in foreign made 
products, all aircraft-related items that require a license to Syria 
will be included as controlled US content for purposes of such 
license requirements.

    (v) Cryptographic, cryptoanalytic, and cryptologic items controlled 
to any destination for national security reasons and containing an NS 
Column 1 in the Country Chart column of the ``License Requirements'' 
section of an ECCN on the CCL; or controlled to Syria and containing an 
AT Column 1 in the Country Table Chart column of the ``License 
Requirements'' section of an ECCN on the CCL. [[Page 25320]] 
    (2) Items that are controlled for nuclear non-proliferation reasons 
to any destination and have an NP Column 1 or NP Column 2 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL will be considered on a case-by-case basis.
    (3) Applications for export and reexport to Syria of all other 
items described in paragraph (a) of this section, and not controlled by 
paragraphs (b)(1) or (b)(2) of this section, will generally be denied 
if the export or reexport is destined to a military end-user or for 
military end-use. Applications for non-military end-users or for non-
military end-uses will be considered on a case-by-case basis.
    (4) Notwithstanding the provisions of paragraphs (b)(1), (b)(2), 
and (b)(3) of this section, applications for Syria will be considered 
on a case-by-case basis if:
    (i) The transaction involves the reexport to Syria of items where 
Syria was not the intended ultimate destination at the time of original 
export from the United States, provided that the exports from the U.S. 
occurred prior to the applicable contract sanctity date (or, where the 
contract sanctity date is December 16, 1986, prior to June 18, 1987).
    (ii) The U.S. content of foreign-produced commodities is 20% or 
less by value; or
    (iii) The commodities are medical equipment.

    Note: Applicants who wish any of the factors described in 
paragraph (b) of this section to be considered in reviewing their 
license applications must submit adequate documentation 
demonstrating the value of the U.S. content, the specifications and 
medical use of the equipment, or the date of export from the United 
States.

    (5) License applications for items reviewed under 6(a) controls 
will also be reviewed to determine the applicability of 6(j) controls 
to the transaction. When it is determined that an export or reexport 
could make a significant contribution to the military potential of 
Syria, including its military logistics capability, or could enhance 
Syria's ability to support acts of international terrorism, the 
appropriate committees of the Congress will be notified thirty days 
before issuance of a validated license to export or reexport such 
items.
    (c) Contract sanctity. Contract sanctity dates and related 
licensing policies for Syria are set forth in Supplement No. 3 to part 
742. Applicants who wish a pre-existing contract to be considered must 
submit sufficient documentation to establish the existence of a 
contract.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining anti-terrorism controls, at 
this time these controls are maintained only by the United States.


Sec. 742.10  Anti-terrorism: Sudan.

    (a) License requirements. In support of U.S. foreign policy on 
terrorism designated countries, BXA maintains anti-terrorism controls 
on the export and reexport of items described in paragraph (a)(1) 
through (a)(v) of Supplement No. 3 to part 742. These items are 
controlled under section 6(j) of the Export Administration Act, as 
amended (EAA).
    (b) Licensing policy. (1) Applications for export and reexport to 
Sudan of the following items will generally be denied:
    (i) Items that are controlled for chemical and biological weapons 
proliferation reasons to any destination (i.e., that contain CB Column 
1, CB Column 2, or CB Column 3 in the Country Chart column of the 
``License Requirements'' section of an ECCN on the CCL).
    (ii) Military-related items controlled for national security 
reasons to any destination (i.e., that contain NS Column 1 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL and ending with the number ``18'').
    (iii) Items that are controlled for missile proliferation reasons 
to any destination (i.e., that contain a MT Column 1 in the Country 
Chart column of the ``License Requirements'' section of an ECCN on the 
CCL).
    (2) Items that are controlled for nuclear non-proliferation reasons 
to any destination (i.e., that contain a NP Column 1 or NP Column 2 in 
the Country Chart column of the ``License Requirements'' section of an 
ECCN on the CCL) will be considered on a case-by-case basis.
    (3) Applications for the export and reexport of national security 
controlled items to any destination (i.e., that contain NS Column 1 in 
the Country Chart column of the ``License Requirements'' section of an 
ECCN on the CCL) will be denied if the export or reexport is destined 
to a military end-user or for military end-use. Applications for non-
military end-users or for non-military end-uses will be considered on a 
case-by-case basis.
    (4) Notwithstanding the provisions of paragraphs (b)(1), (b)(2), 
and (b)(3) of this section, applications for Sudan will be considered 
on a case-by-case basis if:
    (i) The transaction involves the reexport to Sudan of items where 
Sudan was not the intended ultimate destination at the time of original 
export from the United States, provided that the exports from the U.S. 
occurred prior to the contract sanctity date of December 28, 1993).
    (ii) The U.S. content of foreign-produced commodities is 20% or 
less by value; or
    (iii) The commodities are medical equipment.

    Note: Applicants who wish any of the factors described in 
paragraph (b)(4) of this section to be considered in reviewing their 
license applications must submit adequate documentation 
demonstrating the value of the U.S. content, the specifications and 
medical use of the equipment, or the date of export from the United 
States.

    (c) Contract sanctity. Contract sanctity dates and related 
licensing information for Sudan are set forth in Supplement No. 3 part 
742. Applicants who wish a pre-existing contract to be considered must 
submit sufficient documentation to establish the existence of a 
contract.
    (d) U.S. controls. Although the United States seeks cooperation 
from like-minded countries in maintaining anti-terrorism controls, at 
this time these controls are maintained only by the United States.


Sec. 742.11  [Reserved]


Sec. 742.12  Supercomputers.

    (a) License requirements. (1) This section contains special 
provisions for exports, reexports, and certain intra-country transfers 
of supercomputers. A supercomputer is any computer with a Composite 
Theoretical Performance (CTP) equal to or exceeding 1,500 MTOPS 
(million theoretical operations per second). For the calculation of 
CTP, see the Technical Note that follows the Advisory Notes for 
Category 4 in the Commerce Control List.
    (2) In recognition of the strategic significance of supercomputers, 
in particular their potential to make substantial contributions to 
activities of national security and weapons proliferation concern, a 
license is required for the export or reexport of supercomputers to all 
destinations, except Japan and Canada and for intra-country transfers 
within such destinations, except that no license is required for export 
from Japan. These license requirements are not reflected on the Country 
Chart (Supplement No. 1 to part 738 of this subchapter).
    (b) Licensing policy. Supercomputer licensing policies described in 
this section vary according to the country of destination. Generally 
licenses are subject to security conditions or safeguard plans. 
Security conditions, safeguard plans, and related information are 
provided in Supplement No. 4 to part 742. [[Page 25321]] 
    (1) License applications for exports, reexports, or in-country 
transfers of supercomputers to Australia, Belgium, Denmark, France, 
Germany, Italy, the Netherlands, Norway, Spain, and the United Kingdom 
generally will be approved subject to Minimum Security Conditions (see 
Supplement No. 4 to part 742), unless otherwise stated on the license.
    (2) License applications for exports, reexports, or in-country 
transfers of supercomputers to Austria, Finland, Iceland, Mexico, 
Singapore, South Korea, Sweden, Switzerland, and Venezuela will be 
considered on a case-by-case basis and, if approved, will be subject to 
Level 1 Safeguards Plans (see Supplement No. 4 to part 742), unless 
otherwise stated on the license. The following factors will be 
considered in reviewing applications for these countries:
    (i) Strategic trade control cooperation between the importing 
government and the United States;
    (ii) The ultimate consignee's participation in, or support of, any 
activities that involve national security concerns (e.g., cryptography, 
anti-submarine, and strategic defense concerns); or
    (iii) The ultimate consignee's participation in, or support of, the 
following prohibited activities:
    (A) The design, development, production, or use of:
    (1) Nuclear explosive devices, including any components or 
subsystems of such devices;
    (2) Complete rocket systems or unmanned air vehicle systems capable 
of delivering nuclear weapons, including any components or subsystems 
of such devices;
    (B) The design, development, production, use, or maintenance of 
nuclear fuel cycle facilities (including facilities related to nuclear 
propulsion) or heavy water production plants in countries in Country 
Group D:2 (see Supplement No. 1 to part 740 of this subchapter);
    (C) Any projects or facilities for the design, development, 
production, stockpiling, or use of chemical or biological weapons;
    (D) A violation of the export laws and regulations of a supplier 
country or involvement in clandestine procurement activities or other 
activities where there is a significant risk of diversion from the 
authorized end-uses or a likelihood that supercomputer security 
safeguards would not be effectively implemented.
    (3) License applications for export, reexport, or in-country 
transfers of supercomputers to the following countries will be 
considered on a case-by-case basis and, if approved, will be subject to 
Level 2 Safeguards Plans (see Supplement No. 4 to part 742), unless 
otherwise stated on the license: Bahrain, Czech Republic, Egypt, 
Jordan, Lebanon, Poland, Qatar, Slovakia, Taiwan, and Yemen and 
countries in Country Group D:2 (see Supplement No. 1 to part 740 of 
this subchapter), excluding Iran. The factors that will be considered 
in reviewing applications to these countries are the same as those set 
forth in paragraph (b)(2) of this section.

    Note: The number and nature of the safeguards required to 
approve an application will depend on whether the end-use is single-
purpose or multiple-purpose (fewer safeguards will generally be 
required to approve an application when the end-use is single-
purpose).

    (4) License applications for exports, reexports, or in-country 
transfers of supercomputers to the following countries will generally 
be denied: countries in Country Group D:1 (see Supplement No. 1 to part 
740 of this subchapter), Cuba, Iran, Iraq, the Federal Republic of 
Yugoslavia (Serbia and Montenegro), Libya, North Korea, Sudan, and 
Syria. Should an application be considered for approval to any such 
destinations, an appropriate safeguards plan will be developed 
including appropriate security conditions described under the Level 2 
Safeguards Plans (see Supplement No. 4 to part 742).
    (5) License applications for exports, reexports, or in-country 
transfers of supercomputers to other countries will be reviewed on a 
case-by-case basis and will be evaluated to determine which safeguards 
requirements would be most appropriate. In addition to the factors set 
forth in paragraph (b)(2) of this section, the following criteria will 
be considered in the review of these applications:
    (i) The presence and activities of countries and end-users of 
national security and proliferation concern and the relationships that 
exist between the government of the importing country and such 
countries and end-users; and,
    (ii) The extent to which the importing country has cooperated with 
the United States in stemming nuclear, chemical or biological weapons, 
or missile proliferation activities.

    Note: The number and nature of the safeguards required to 
approve an application will depend on whether the end-use is single-
purpose or multiple-purpose (fewer safeguards will generally be 
required to approve an application when the end-use is single-
purpose).

    (6) Exports, reexports, or in-country transfers of supercomputers 
involving countries listed in paragraphs (b)(1), (b)(2), and (b)(3) of 
this section that are solely dedicated to the following non-scientific 
and non-technical commercial and business uses may be eligible for a 
less restrictive set of security safeguards than those normally 
applicable to such countries:
    (i) Financial services (e.g., banking and securities and commodity 
exchanges);
    (ii) Insurance;
    (iii) Reservation systems;
    (iv) Point-of-sales systems;
    (v) Mailing list maintenance for marketing purposes;
    (vi) Inventory control for retail/wholesale distribution.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications involving exports and reexports of 
supercomputers.
    (d) Supercomputer regime. The United States and Japan participate 
in a supercomputer regime. Other countries are expected to join. The 
regime provides uniform and effective safeguards to protect 
supercomputers from unauthorized end-users and unauthorized end-uses, 
including those associated with proliferation. Under the regime, 
supercomputer controls apply on a world-wide basis.


Sec. 742.13  Communications intercepting devices.

    (a) License requirement. (1) As set forth in ECCN 5A80, a license 
is required for the export or reexport to any destination, including 
Canada, of any electronic, mechanical, or other device primarily useful 
for surreptitious interception of wire or oral communications. This 
control implements a provision of the Omnibus Crime Control and Safe 
Streets Act of 1968 (Pub.L. 90-361). This license requirement is not 
reflected on the Country Chart (Supplement No. 1 to part 738 of this 
subchapter).
    (2) Communications intercepting devices are electronic, mechanical, 
or other devices that can be used for interception of wire or oral 
communications if their design renders them primarily useful for 
surreptitious listening even though they may also have innocent uses. A 
device is not restricted merely because it is small or may be adapted 
to wiretapping or eavesdropping. Some examples of devices to which 
these restrictions apply are: the martini olive transmitter; the 
infinity transmitter; the spike mike; and the disguised microphone 
appearing as a wristwatch, cufflink, or cigarette pack; etc. The 
restrictions do not apply to devices such as the parabolic microphone 
or other [[Page 25322]] directional microphones ordinarily used by 
broadcasters at sports events, since these devices are not primarily 
useful for surreptitious listening.
    (b) Licensing policy. (1) License applications will generally be 
approved for:
    (i) A provider of wire or electronic communication services or an 
officer, agent, or employee of, or person under contract with, such a 
provider in the normal course of the business of providing that wire or 
electronic communication service; and
    (ii) Officers, agents, or employees of, or person under contract 
with the United States, one of the 50 States, or a political 
subdivision thereof, when engaged in the normal course of government 
activities.
    (2) Other applications will generally be denied.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications involving exports and reexports of 
communications interception devices.
    (d) U.S. controls. Controls on this equipment are maintained by the 
United States government in accordance with the Omnibus Crime Control 
and Safe Streets Act of 1968.

Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
Biological Weapons

    Note: Exports and reexports of items in performance of contracts 
entered into before the applicable contract sanctity date(s) will be 
eligible for review on a case-by-case basis or other applicable 
licensing policies that were in effect prior to the contract 
sanctity date. The contract sanctity dates set forth in this 
Supplement are for the guidance of exporters. Contract sanctity 
dates are established in the course of the imposition of foreign 
policy controls on specific items and are the relevant dates for the 
purpose of licensing determinations involving such items. If you 
believe that a specific contract sanctity date is applicable to your 
transaction, you should include all relevant information with your 
license application.

    (1) The contract sanctity date for exports to Syria of dimethyl 
methylphosphonate, methyl phosphonyldifluoride, phosphorous 
oxychloride, thiodiglycol, dimethylamine hydrochloride, 
dimethylamine, ethylene chlorohydrin (2-chloroethanol), and 
potassium fluoride is April 28, 1986.
    (2) The contract sanctity date for exports to Iran or Syria of 
dimethyl phosphite (dimethyl hydrogen phosphite), methyl 
phosphonyldichloride, 3-quinuclidinol, N,N-diisopropylaminoethane-2-
thiol, N,N-diisopropylaminoethyl-2-chloride, 3-hydroxy-1-
methylpiperidine, trimethyl phosphite, phosphorous trichloride, and 
thionyl chloride is July 6, 1987.
    (3) The contract sanctity date for exports to Iran or Syria of 
items in ECCN 1C61 is February 22, 1989.
    (4) The contract sanctity date for exports to Iran of dimethyl 
methylphosphonate, methylphosphonyl difluoride, phosphorus 
oxychloride, and thiodiglycol is February 22, 1989.
    (5) The contract sanctity date for exports to Iran, Libya, or 
Syria of potassium hydrogen fluoride, ammonium hydrogen fluoride, 
sodium fluoride, sodium bifluoride, phosphorus pentasulfide, sodium 
cyanide, triethanolamine, diisopropylamine, sodium sulfide, and N,N 
-diethylethanolamine is December 12, 1989.
    (6) The contract sanctity date for exports to all destinations 
(except Iran or Syria) of phosphorus trichloride, trimethyl 
phosphite, and thionyl chloride is December 12, 1989. For exports to 
Iran or Syria, paragraph (2) of this Supplement applies.
    (7) The contract sanctity date for exports to all destinations 
(except Iran, Libya, or Syria) of 2-chloroethanol and 
triethanolamine is January 15, 1991. For exports of 2-chloroethanol 
to Syria, paragraph (1) of this Supplement applies. For exports of 
triethanolamine to Iran, Libya, or Syria, paragraph (6) of this 
Supplement applies.
    (8) The contract sanctity date for exports to all destinations 
(except Iran, Libya, or Syria) of chemicals controlled by ECCN 1C60 
is March 7, 1991, except for applications to export the following 
chemicals: 2-chloroethanol, dimethyl methylphosphonate, dimethyl 
phosphite (dimethyl hydrogen phosphite), methylphosphonyl 
dichloride, methylphosphonyl difluoride, phosphorus oxychloride, 
phosphorous trichloride, thiodiglycol, thionyl chloride 
triethanolamine, and trimethyl phosphite. (See also paragraphs (6) 
and (7) of this Supplement.) For exports to Iran, Libya, or Syria, 
see paragraphs (1) through (6) of this Supplement.
    (9) The contract sanctity date for exports and reexports of the 
following commodities and technical data is March 7, 1991:
    (i) Equipment for producing chemical weapon precursors and 
chemical warfare agents described in ECCN 1B70;
    (ii) Equipment and materials for producing biological agents) 
described in ECCN 1B71; and
    (iii) Technology for the production of 1B70 and 1B71 described 
in 1E70.
    (10) The contract sanctity date for license applications subject 
to Sec. 742.2(b)(3) of this Part is March 7, 1991.
    (11) The contract sanctity date for reexports of chemicals 
controlled under ECCN 1C60 is March 7, 1991, except that the 
contract sanctity date for reexports of these chemicals to Iran, 
Libya, or Syria is December 12, 1989.
    (12) The contract sanctity date for reexports of viruses, 
viroids, bacteria, fungi, and protozoa controlled by ECCN 1C61 is 
March 7, 1991.

Supplement No. 2 to Part 742--Countries That Are Party to the Nuclear 
Non-Proliferation Treaty and/or the Treaty for the Prohibition of 
Nuclear Weapon in Latin America (Treaty of Tlatelolco)

    [This Supplement is redesignated from Supplement No. 2 to Part 
778 elsewhere in this proposed rule. The text for this Supplement 
will be set out in the final rule.]

Supplement No. 3 to Part 742--Iran, Sudan and Syria Contract 
Sanctity Dates and Related Policies

    (a)(1) The current licensing policies for Iran, Sudan, and Syria 
are set forth in Secs. Sec. 742.8, 742.9, and 742.10 of this part. 
The following list provides guidance on licensing policies and 
related contract sanctity dates that may be available for 
transactions involving pre-existing contracts involving Iran, Sudan, 
and Syria.
    (i) All items subject to national security controls. (A) Iran. 
Applications for export and reexport to Iran of these items will 
generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of items valued at $7 million or more: January 
23, 1984.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other national security controlled 
items: September 28, 1984.
    (3) Contract sanctity date for exports and reexports to non-
military end-users or end-uses: October 23, 1992, unless otherwise 
specified in this paragraph (a)(1)(i) of this Supplement.
    (B) Sudan. Applications for export and reexport to Sudan of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or military end-use. Applications 
for exports and reexports to non-military end-users or end-uses will 
be considered on a case-by-case basis. Contract sanctity date: 
December 28, 1993.
    (C) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or military end-use. Applications 
for exports and reexport to non-military end-users or end-uses will 
be considered on a case-by-case basis, unless otherwise specified in 
this paragraph (a)(1)(i) of this Supplement.
    (1) No contract sanctity date for exports and reexports to 
military end-users or end-uses of items valued at $7 million or 
more.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other items: December 16, 1986.
    (ii) All items subject to chemical and biological weapons 
proliferation controls. Applications for export and reexport to 
Iran, Sudan, or Syria of these items will generally be denied to all 
end-users. Contract sanctity date for Sudan: December 28, 1993 (See 
Supplement No. 1 to Part 742 for contract sanctity dates for Iran 
and Syria).
    (iii) All items subject to missile proliferation controls 
(MTCR). Applications for export and reexport to Iran, Sudan, or 
Syria of these items will generally be denied to all end-users. 
Contract sanctity date for Sudan: December 28, 1993. Contract 
sanctity provisions for Iran and Syria are not available.
    (iv) All items subject to nuclear weapons proliferation controls 
(NRL). (A) Iran. Applications for export and reexport to Iran of 
these items will generally be denied to all end-users. Contract 
sanctity date: October 23, [[Page 25323]] 1992, unless otherwise 
specified in this paragraph (a)(1) of this Supplement.
    (B) Sudan. Applications for export and reexport to Sudan of 
these items will generally be denied if destined to a military end-
user or end-use. Applications for export and reexport to non-
military end-users or end-uses will be considered on a case-by-case 
basis. Contract sanctity date: December 28, 1993.
    (C) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if destined to a military end-
user or end-use. Applications for export and reexport to non-
military end-users or end-uses will be considered on a case-by-case 
basis. Contract sanctity date: October 23, 1992.
    (v) All military-related items, i.e., applications for export 
and reexport of items controlled by CCL entries ending with the 
number ``18''. (A) Iran. Applications for export and reexport to 
Iran of these items will generally be denied to all end-users. 
Contract sanctity date: see paragraph (a)(1)(i)(A) of this 
Supplement.
    (B) Sudan. Applications for export and reexport to Sudan of 
these items will generally be denied to all end-users. Contract 
sanctity date: December 28, 1993.
    (C) Syria. Applications for export and reexport to Syria of 
these items will generally be denied to all end-users. Contract 
sanctity date: see paragraph (a)(1)(i)(B) of this Supplement.
    (vi) All aircraft (powered and unpowered), helicopters, engines, 
and related spare parts and components. (A) Iran. Applications for 
export (and reexport, if applicable) to Iran of these items will 
generally be denied to all end-users.
    (1) Contract sanctity date for helicopters exceeding 10,000 lbs. 
empty weight or fixed wing aircraft valued at $3 million or more: 
January 23, 1984.
    (2) Contract sanctity date for other helicopters and aircraft 
and gas turbine engines therefor: September 28, 1984.
    (3) Contract sanctity date for helicopter or aircraft parts and 
components controlled by 9A91, 9A94, or 9A95: October 22, 1987.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied to all end-users.
    (1) There is no contract sanctity for helicopters exceeding 
10,000 lbs. empty weight or fixed wing aircraft valued at $3 million 
or more; except that passenger aircraft, regardless of value, have a 
contract sanctity date of August 28, 1991, if destined for a 
regularly scheduled airline with assurance against military use.
    (2) Contract sanctity date for helicopters with 10,000 lbs. 
empty weight or less: April 28, 1986.
    (3) Contract sanctity date for other aircraft and gas turbine 
engines therefor: December 16, 1986.
    (4) Contract sanctity date for helicopter or aircraft parts and 
components controlled by 9A91 or 9A94: August 28, 1991.
    (vii) Heavy duty, on-highway tractors. (A) Iran. Applications 
for export and reexport to Iran of these items will generally be 
denied to all end-users. Contract sanctity date: August 28, 1991.
    (B) Syria. Applications for export or reexport to Syria of these 
items will generally be denied if the export or reexport is destined 
to a military end-user or for military end-use. Applications for 
non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis. Contract sanctity date for 
military end-users or end-uses: August 28, 1991.
    (viii) Off-highway wheel tractors of carriage capacity 9t (10 
tons) or more. (A) Iran. Applications for export (and reexport, if 
applicable) to Iran of these items will generally be denied to all 
end-users. Contract sanctity date: October 22, 1987.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis. Contract 
sanctity date for military end-users or end-uses: August 28, 1991.
    (ix) Large diesel engines (greater than 400 horsepower) and 
parts to power tank transporters. (A) Iran. Applications for export 
(and reexport, if applicable) to Iran of these items will generally 
be denied to all end-users. Contract sanctity date: October 22, 
1987.
    (B) Reserved.
    (x) Cryptographic, cryptoanalytic, and cryptologic equipment. 
(A) Iran. Applications for export (and reexport, if applicable) to 
Iran of any such equipment will generally be denied to all end-
users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of cryptographic, cryptoanalytic, and 
cryptologic equipment that were subject to national security 
controls on October 22, 1987: see paragraphs (a)(1)(i)(A)(1) and 
(a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for all other cryptographic, 
cryptoanalytic, and cryptologic equipment: October 22, 1987.
    (B) Syria. A license is required for all national security-
controlled cryptographic, cryptoanalytic, and cryptologic equipment 
to all end-users. Applications for export and reexport to Syria will 
generally be denied.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of cryptographic, cryptoanalytic, and 
cryptologic equipment that were subject to national security 
controls on August 28, 1991: see paragraph (a)(1)(i)(B) of this 
Supplement.
    (2) Contract sanctity date for exports and reexports to non-
military end-users or end-uses of cryptographic, cryptoanalytic, and 
cryptologic equipment that were subject to national security 
controls on August 28, 1991: December 16, 1986.
    (3) Contract sanctity date for all other cryptographic, 
cryptoanalytic, and cryptologic equipment to all end-users: August 
28, 1991.
    (xi) Navigation, direction finding, and radar equipment.
    (A) Iran. Applications for export (and reexport, if applicable) 
to Iran of such equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of navigation, direction finding, and radar 
equipment that were subject to national security controls on August 
28, 1991: see paragraphs (a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this 
Supplement.
    (2) Contract sanctity date for all other navigation, direction 
finding, and radar equipment: October 22, 1987.
    (B) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of navigation, direction finding, and radar 
equipment that were subject to national security controls on August 
28, 1991: see paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for all other navigation, direction 
finding, and radar equipment for military end-users or end-uses: 
August 28, 1991.
    (xii) Electronic test equipment.
    (A) Iran. Applications for export (and reexport, if applicable) 
to Iran of such equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of electronic test equipment that was subject 
to national security controls on October 22, 1987: see paragraphs 
(a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for all other electronic test 
equipment for all end-users: October 22, 1987.
    (B) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied to a military end-user or for 
military end-use. Applications for non-military end-users or for 
non-military end-uses in Syria will be considered on a case-by-case 
basis.
    (1) Contract sanctity date for exports and reexport to military 
end-users or end-uses of electronic test equipment that was subject 
to national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexport to military 
end-users or end-uses of all other electronic test equipment: August 
28, 1991.
    (xiii) Mobile communications equipment.
    (A) Iran. Applications for export (and reexport, if applicable) 
to Iran of such equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexport of mobile 
communications equipment that was subject to national security 
controls on October 22, 1987: see paragraphs (a)(1)(i)(A)(1) and 
(a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for all other mobile communications 
equipment for all end-users: October 22, 1987.
    (B) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non- [[Page 25324]] military end-users or for non-
military end-uses in Syria will be considered on a case-by-case 
basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of mobile communications equipment that were 
subject to national security controls on August 28, 1991: see 
paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other mobile communications equipment: 
August 28, 1991.
    (xiv) Acoustic underwater detection equipment.
    (A) Iran. Applications for export and reexport to Iran of such 
equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of acoustic underwater detection equipment 
that was subject to national security controls on October 22, 1987: 
see paragraphs (a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this 
Supplement.
    (2) Contract sanctity date for all other acoustic underwater 
detection equipment for all end-users: October 22, 1987.
    (B) Syria. A license is required for national security-
controlled acoustic underwater detection equipment. Applications for 
export and reexport to Syria will generally be denied if the export 
or reexport is destined to a military end-user or for military end-
use. Applications for non-military end-users or for non-military 
end-uses in Syria will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of acoustic underwater detection equipment 
that was subject to national security controls on August 28, 1991: 
see paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses for all other acoustic underwater detection 
equipment: August 28, 1991.
    (xv) Portable electric power generators. (A) Iran. Applications 
for export (and reexport, if applicable) to Iran of such equipment 
will generally be denied to all end-users. Contract sanctity date: 
October 22, 1987.
    (B) Reserved.
    (xvi) Vessels and boats, including inflatable boats. (A) Iran. 
Applications for export (and reexport, if applicable) to Iran of 
these items will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of vessels and boats that were subject to 
national security controls on October 22, 1987: see paragraphs 
(a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for all other vessels and boats for 
all end-users: October 22, 1987.
    (B) Syria. A license is required for only national security-
controlled vessels and boats. Applications for export and reexport 
to Syria of these items will generally be denied if the export or 
reexport is destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexport to military 
end-users or end-uses of vessels and boats that were subject to 
national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for all other vessels and boats: 
August 28, 1991.
    (xvii) Marine and submarine engines (outboard/inboard, 
regardless of horsepower). (A) Iran. Applications for export and 
reexport to Iran of these items will generally be denied to all end-
users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of marine and submarine engines that were 
subject to national security controls on October 22, 1987: see 
paragraphs (a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for outboard engines of 45 HP or more 
for all end-users: September 28, 1984.
    (3) Contract sanctity date for all other marine and submarine 
engines for all end-users: October 22, 1987.
    (B) Syria. A license is required for all national security 
controlled marine and submarine engines. Applications for export and 
reexport to Syria of these items will generally be denied if the 
export or reexport is destined to a military end-user or for 
military end-use. Applications for non-military end-users or for 
non-military end-uses in Syria will be considered on a case-by-case 
basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of marine and submarine engines that were 
subject to national security controls on August 28, 1991: see 
paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for all other marine and submarine 
engines: August 28, 1991.
    (xviii) Underwater photographic equipment. (A) Iran. 
Applications for export (and reexport, if applicable) to Iran of 
such equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of underwater photographic equipment that was 
subject to national security controls on October 22, 1987: see 
paragraphs (a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for all other underwater photographic 
equipment for all end-users: October 22, 1987.
    (B) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of underwater photographic equipment that was 
subject to national security controls on August 28, 1991: see 
paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other underwater photographic 
equipment: August 28, 1991.
    (xix) Submersible systems. (A) Iran. Applications for export and 
reexport to Iran of such systems will generally be denied to all 
end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of submersible systems that were subject to 
national security controls on October 22, 1987: see paragraphs 
(a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for all other submersible systems for 
all end-users: October 22, 1987.
    (B) Syria. Applications for export and reexport to Syria of such 
systems will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of submersible systems that were subject to 
national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other submersible systems: August 28, 
1991.
    (xx) Scuba gear and related equipment. Applications for export 
and reexport to Iran of such equipment will generally be denied to 
all end-users. No contract sanctity for Iran.
    (xxi) Pressurized aircraft breathing equipment. (A) Iran. 
Applications for export and reexport to Iran of such equipment will 
generally be denied to all end-users. Contract sanctity date: 
October 22, 1987.
    (B) Reserved.
    (xxii) Computer numerically controlled machine tools. (A) Iran. 
Applications for export and reexport to Iran of these items will 
generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of computer 
numerically controlled machine tools that were subject to national 
security controls on August 28, 1991 for all end-users: see 
paragraph (a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other computer numerically 
controlled machine tools: August 28, 1991, for military end-users or 
end-uses; October 23, 1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications to Syria for non-military end-users or for non-military 
end-uses will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of computer numerically controlled machine 
tools that were subject to national security controls on August 28, 
1991: see paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other computer numerically controlled 
machine tools: August 28, 1991.
    (xxiii) Vibration test equipment. (A) Iran. Applications for 
export and reexport to Iran [[Page 25325]] of such equipment will 
generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexport of vibration 
test equipment that was subject to national security controls on 
August 28, 1991 for all end-users: see paragraph (a)(1)(i)(A) of 
this Supplement.
     (2) Contract sanctity dates for all other vibration test 
equipment: August 28, 1991, for military end-users or end-uses; 
October 23, 1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications to Syria for non-military end-users or for non-military 
end-uses will be considered on a case-by-case basis.
    (1) Contract sanctity date for export and reexport to military 
end-users or end-uses of vibration test equipment that was subject 
to national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other vibration test equipment: August 
28, 1991.
    (xxiv) Digital computers with a CTP of 6 or above, assemblies, 
related equipment, equipment for development or production of 
magnetic and optical storage equipment, and materials for 
fabrication of head/disk assemblies. (A) Iran. Applications for 
export and reexport to Iran of these items will generally be denied 
to all end-users.
    (1) Contract sanctity dates for exports and reexports of items 
that were subject to national security controls on August 28, 1991 
for all end-users: see paragraph (a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity date for all other items for all end-
users: August 28, 1991.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied, if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity dates for export and reexport to military 
end-users or end-uses of items that were subject to national 
security controls on August 28, 1991: see paragraph (a)(1)(i)(B) of 
this Supplement.
    (2) Contract sanctity date for export and reexport to military 
end-users or end-uses of all other items: August 28, 1991.
    (xxv) Telecommunications equipment. (A) A license is required 
for the following telecommunications equipment:
    (1) Radio relay systems or equipment operating at a frequency 
equal to or greater than 19.7 GHz or ``spectral efficiency'' greater 
than 3 bit/s/Hz;
    (2) Fiber optic systems or equipment operating at a wavelength 
greater than 1000 nm;
    (3) ``Telecommunications transmission systems'' or equipment 
with a ``digital transfer rate'' at the highest multiplex level 
exceeding 45 Mb/s.
    (B) Iran. Applications for export or reexport to Iran of such 
equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of 
telecommunications equipment that was subject to national security 
controls on August 28, 1991 for all end-users: see paragraph 
(a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other telecommunications 
equipment: August 28, 1991, for military end-users or end-uses; 
October 23, 1992, for non-military end-users or end-uses.
    (C) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexport to military 
end-users or end-uses of telecommunications equipment that was 
subject to national security controls on August 28, 1991: see 
paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other telecommunications equipment: 
August 28, 1991.
    (xxvi) Microprocessors operating at a clock speed over 25 MHz. 
(A) Iran. Applications for export and reexport to Iran of these 
items will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of 
microprocessors that were subject to national security controls on 
August 28, 1991 for all end-users: see paragraph (a)(1)(i)(A) of 
this Supplement.
    (2) Contract sanctity dates for all other microprocessors: 
August 28, 1991, for military end-users or end-uses; October 23, 
1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of microprocessors that were subject to 
national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other microprocessors: August 28, 1991.
    (xxvii) Semiconductor manufacturing equipment. For Iran or 
Syria, a license is required for all such equipment described in 
ECCNs 3B01 and 3B91.
    (A) Iran. Applications for export and reexport to Iran of such 
equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of 
semiconductor manufacturing equipment that was subject to national 
security controls on August 28, 1991 for all users: see paragraph 
(a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other semiconductor 
manufacturing equipment: August 28, 1991, for military end-users or 
end-uses; October 23, 1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for export and reexport to military 
end-users or end-uses of semiconductor manufacturing equipment that 
was subject to national security controls on August 28, 1991: see 
paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for export and reexport to military 
end-users or end-uses of all other semiconductor manufacturing 
equipment: August 28, 1991.
    (xxviii) Software specially designed for the computer-aided 
design and manufacture of integrated circuits. (A) Iran. 
Applications for export and reexport to Iran of such software will 
generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of software 
that was subject to national security controls on August 28, 1991 
for all end-users: see paragraph (a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other software: August 28, 
1991, for military end-users or end-uses; October 23, 1992, for non-
military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of such 
software will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of such software that was subject to national 
security controls on August 28, 1991: see paragraph (a)(1)(i)(B) of 
this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other such software: August 28, 1991.
    (xxix) Packet switches. For Iran or Syria, a license is required 
for all equipment described in ECCNs 5A03 and 5A94.
    (A) Iran. Applications for export and reexport to Iran of such 
equipment will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of packet 
switches that were subject to national security controls on August 
28, 1991 for all end-users: see paragraph (a)(1)(i)(A) of this 
Supplement.
    (2) Contract sanctity dates for all other packet switches: 
August 28, 1991, for military end-users or end-uses; October 23, 
1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of such 
equipment will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of packet switches that were subject to 
national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses [[Page 25326]] for all other packet switches: 
August 28, 1991.
    (xxx) Specially designed software for air traffic control 
applications that uses any digital signal processing techniques for 
automatic target tracking or that has a facility for electronic 
tracking.
    (A) Iran. Applications for export and reexport to Iran of such 
software will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of such 
software that was subject to national security controls on August 
28, 1991 for all end-users: see paragraph (a)(1)(i)(A) of this 
Supplement.
    (2) Contract sanctity dates for all other such software: August 
28, 1991, for military end-users or end-uses; October 23, 1992, for 
non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of such 
software will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of such software that was subject to national 
security controls on August 28, 1991: see paragraph (a)(1)(i)(B) of 
this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other such software: August 28, 1991.
    (xxxi) Gravity meters having static accuracy of less (better) 
than 100 microgal, or gravity meters of the quartz element (worden) 
type. (A) Iran. Applications for export and reexport to Iran of 
these items will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of gravity 
meters that were subject to national security controls on August 28, 
1991 for all end-users: see paragraph (a)(1)(i)(A) of this 
Supplement.
    (2) Contract sanctity dates for all other such gravity meters: 
August 28, 1991, for military end-users or end-uses; October 23, 
1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for export and reexport to military 
end-users or end-uses of gravity meters that were subject to 
national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other such gravity meters: August 28, 
1991.
    (xxxii) Magnetometers with a sensitivity lower (better) than 1.0 
nt rms per square root Hertz. (A) Iran. Applications for export and 
reexport to Iran of these items will generally be denied to all end-
users.
    (1) Contract sanctity date for exports and reexports of such 
magnetometers that were subject to national security controls on 
August 28, 1991 for all end-users: see paragraph (a)(1)(i)(A) of 
this Supplement.
    (2) Contract sanctity dates for all other such magnetometers: 
August 28, 1991, for military end-users or end-uses; October 23, 
1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of such magnetometers that were subject to 
national security controls on August 28, 1991: see paragraph 
(a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other such magnetometers: August 28, 
1991.
    (xxxiii) Fluorocarbon compounds described in ECCN 1C94 for 
cooling fluids for radar and supercomputers. (A) Iran. Applications 
for export and reexport to Iran of such compounds will generally be 
denied to all end-users.
    (1) Contract sanctity date for exports and reexports of such 
fluorocarbon compounds that were subject to national security 
controls on August 28, 1991 for all end-users: see paragraph 
(a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other such fluorocarbon 
compounds: August 28, 1991, for military end-users or end-uses; 
October 23, 1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export and reexports to Syria of 
such compounds will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of such fluorocarbon compounds that were 
subject to national security controls on August 28, 1991: see 
paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other such fluorocarbon compounds: 
August 28, 1991.
    (xxxiv) High strength organic and inorganic fibers (kevlar) 
described in ECCN 1C50. (A) Iran. Applications for export and 
reexport to Iran of such fibers will generally be denied to all end-
users.
    (1) Contract sanctity date for exports and reexports of high 
strength organic and inorganic fibers described in 1C50 that were 
subject to national security controls on August 28, 1991 for all 
end-users: see paragraph (a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other high strength organic 
and inorganic fibers described in 1C50: August 28, 1991, for 
military end-users or end-uses; October 23, 1992, for non-military 
end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of such 
fibers will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of high strength organic and inorganic fibers 
described in 1C50 that were subject to national security controls on 
August 28, 1991: see paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other high strength organic and 
inorganic fibers described in 1C50: August 28, 1991.
    (xxxv) Machines described in ECCNs 2B03 and 2B93 for cutting 
gears up to 1.25 meters in diameter. (A) Iran. Applications for 
export and reexport to Iran of these items will generally be denied 
to all end-users.
    (1) Contract sanctity date for exports and reexports of machines 
that were subject to national security controls on August 28, 1991 
for all end-users: see paragraph (a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other machines: August 28, 
1991, for military end-users or end-uses; October 23, 1992, for non-
military end-users or end-uses.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of machines that were subject to national 
security controls on August 28, 1991: see paragraph (a)(1)(i)(B) of 
this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other machines: August 28, 1991.
    (xxxvi) Aircraft skin and spar milling machines. (A) Iran. 
Applications for export and reexport to Iran of these items will 
generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports of aircraft 
skin and spar milling machines that were subject to national 
security controls on August 28, 1991 for all end-users: see 
paragraph (a)(1)(i)(A) of this Supplement.
    (2) Contract sanctity dates for all other aircraft skin and spar 
milling machines: August 28, 1991, for military end-users or end-
uses; October 23, 1992, for non-military end-users or end-uses.
    (B) Syria. Applications for export or reexport to Syria of these 
items will generally be denied if the export or reexport is destined 
to a military end-user or for military end use. Applications for 
non-military end-users or for non-military end-uses will be 
considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of aircraft skin and spar milling machines 
that were subject to national security controls on August 28, 1991: 
see paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other aircraft skin and spar milling 
machines: August 28, 1991.
    (xxxvii) Manual dimensional inspection machines described in 
ECCN 2B92. (A) Iran. [[Page 25327]] Applications for export and 
reexport to Iran of these items will generally be denied to all end-
users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of manual dimensional inspection machines that 
were subject to national security controls on August 28, 1991 for 
all end-users: see paragraphs (a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of 
this Supplement.
    (2) Contract sanctity date for all other manual dimensional 
inspection machines: August 28, 1991.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of such manual dimensional inspection machines 
that were subject to national security controls on August 28, 1991: 
see paragraph (a)(1)(i)(B) of this Supplement.
    (2) Contract sanctity date for exports and reexports to military 
end-users or end-uses of all other such manual dimensional 
inspection machines: August 28, 1991.
    (xxxviii) Robots capable of employing feedback information in 
real time processing to generate or modify programs.
    (A) Iran. Applications for export and reexport to Iran of these 
items will generally be denied to all end-users.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of such robots that were subject to national 
security controls on August 28, 1991 for all end-users: see 
paragraphs (a)(1)(i)(A)(1) and (a)(1)(i)(A)(2) of this Supplement.
    (2) Contract sanctity date for all other such robots: August 28, 
1991.
    (B) Syria. Applications for export and reexport to Syria of 
these items will generally be denied if the export or reexport is 
destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
in Syria will be considered on a case-by-case basis.
    (1) Contract sanctity date for exports and reexports to military 
end-users or end-uses of such robots that were subject to national 
security controls on August 28, 1991: see paragraph (a)(1)(i)(B) of 
this Supplement.
    (2) Contract sanctity date for all other such robots: August 28, 
1991.
    (2) Applications for Iran that are not subject to the policy of 
denial under the Iran-Iraq Arms Non-Proliferation Act (i.e., 
contract sanctity established prior to October 23, 1992) will be 
considered on a case-by-case basis for transaction involving the 
reexport to Iran of items where Iran was not the intended ultimate 
destination at the time of original export from the United States, 
provided that the export from the U.S. occurred prior to the 
applicable contract sanctity date indicated in paragraph (a)(1) of 
this Supplement (or, where the contract sanctity date is October 22, 
1987, prior to November 27, 1987).
    (3) Applicants who wish contract sanctity for any of the factors 
described in paragraph (a)(2) of this Supplement to be considered in 
reviewing their license applications must submit adequate 
documentation demonstrating the value of the U.S. content, the 
existence of the pre-existing contract, the specifications and 
intended humanitarian or medical use of the equipment, or the date 
of export from the United States.
    (b) Exports and reexports of items in performance of contracts 
entered into before the applicable contract sanctity date(s) will be 
eligible for review on a case-by-case basis or other applicable 
license policies that were in effect prior to the contact sanctity 
date. The contract sanctity dates set forth in paragraph (a) of this 
Supplement are for the guidance of exporters. Contract sanctity 
dates are established in the course of the imposition of foreign 
policy controls on specific items and are the relevant dates for the 
purpose of licensing determinations involving such items. If you 
believe that a specific contract sanctity date is applicable to your 
transaction, then you should include all relevant information with 
your license application.

Supplement No. 4 to Part 742--Supercomputers; Security Conditions and 
Safeguard Plans Definitions and Related Information

    This Supplement sets forth the applicable security conditions 
and safeguard plans for the export, reexport, or in-country transfer 
of supercomputers to certain destinations. The licensing policies 
for the export, reexport, or in-country transfer of supercomputers 
are set forth in Sec. 742.12 of this Part.

(a) Minimum Security Conditions

    (1) Applicable countries. The countries subject to paragraph (a) 
of this Supplement include: Australia, Belgium, Denmark, France, 
Germany, Italy, the Netherlands, Norway, Spain, and the United 
Kingdom.
    (2) Security conditions. A license for any of the countries 
listed in paragraph (a)(1) of this Supplement will be subject to the 
following conditions unless otherwise specified on the license:
    (i) The applicant will assume responsibility for providing 
adequate security against physical diversion of the supercomputer 
during shipment (e.g., delivery by either attended or monitored 
shipment, using the most secure route possible). This precludes 
using the services or facilities of any country listed in Country 
Group D:1 (see Supplement No. 1 to Part 740 of this subchapter), and 
Iran, Syria, Cuba, Iraq, North Korea, and Libya.);
    (ii) No reexport or intra-country transfer without prior written 
authorization from BXA; and
    (iii) No physical or computational access to supercomputers may 
be granted to restricted nationals (see paragraph (e)(7) of this 
Supplement for definition) without prior written authorization from 
BXA, except that commercial consignees described in 
Sec. 742.12(b)(6) of this Part are prohibited only from giving such 
nationals user-accessible programmability without prior written 
authorization.
    (3) Supporting documentation. Applications must be accompanied 
by an International Import Certificate (IIC) or a Form BXA-6052P, 
Statement by Foreign Consignee, in accordance with the documentation 
requirements in Parts 748 and 752, respectively, of this subchapter.

(b) Level 1 Safeguards Plan

    (1) Applicable countries. The countries subject to paragraph (b) 
of this Supplement include: Austria, Finland, Iceland, Mexico, 
Singapore, South Korea, Sweden, Switzerland, and Venezuela.
    (2) Supercomputer safeguards plan. Following interagency review 
of the application, BXA will instruct the exporter to submit a 
supercomputer safeguards plan signed by the ultimate consignee. For 
supercomputers with a CTP equal to or exceeding 1,950 MTOPS, the 
safeguards plan must also be certified by the export control 
authorities of the importing country. The safeguards plan must 
indicate that the ultimate consignee agrees to implement the 
following safeguards:
    (i) Measures to provide adequate security against physical 
diversion of the supercomputer during shipment (e.g., delivery by 
either attended or monitored shipment, using the most secure route 
possible. This precludes using the services or facilities of any 
country listed in Country Group D:1 (see Supplement No. 1 to Part 
740 of this subchapter), and Iran, Syria, Cuba, Iraq, North Korea, 
and Libya));
    (ii) No reexport or intra-country transfer of the supercomputer 
without prior written authorization from BXA;
    (iii) Security measures to protect the computer using facility 
against theft or unauthorized use of hardware or software at all 
times;
    (iv) Appropriate checks to ensure that physical and 
computational access to the computer using facility will be limited 
to authorized persons;
    (v) Password or ID protocols for access by all authorized users;
    (vi) No access to supercomputers by restricted nationals:
    (A) No physical or computational access to supercomputers may be 
granted to restricted nationals without prior written authorization 
from BXA, except that commercial consignees are prohibited only from 
giving such nationals user-accessible programmability without prior 
written authorization;
    (B) No passwords or IDs may be issued to restricted nationals; 
and
    (C) No work may be performed on the supercomputer on behalf of 
restricted nationals;
    (vii) No conscious or direct ties may be established to networks 
(including their subscribers) operated by restricted nationals;
    (viii) Appropriate monitoring of the use of the supercomputer 
(any indications of improper or unauthorized use or requests for 
runs will be promptly reported to the government of the importing 
country); and
    (ix) No use of the supercomputer for any prohibited activities.
    (3) Certification by export control authorities of importing 
country. The following importing government certification is 
required for supercomputers with a CTP equal to or exceeding 1,950 
MTOPS: [[Page 25328]] 
    This is to certify that (name of ultimate consignee) has 
declared to (name of appropriate foreign government agency) that the 
supercomputer (model name) will be used only for the purposes 
specified in the end-use statement and that the ultimate consignee 
will establish and adhere to all the safeguard conditions and 
perform all other undertakings described in the end-use statement.
    The (name of appropriate foreign government agency) will advise 
the United States Government of any evidence that might reasonably 
indicate the existence of circumstances (e.g., transfer of 
ownership) that could affect the objectives of the security 
safeguard conditions.
    (4) Supporting documentation. With the exception of applications 
for Mexico and Venezuela, applications must be accompanied by an 
International Import Certificate (IIC), or a Form BXA-629P 
(Statement by Ultimate Consignee and Purchaser), in accordance with 
the documentation requirements in Part 748 of this subchapter.

(c) Level 2 Safeguards Plan

    (1) Applicable countries. The countries subject to paragraph (c) 
of this Supplement include: Bahrain, Czech Republic, Egypt, Jordan, 
Lebanon, Poland, Qatar, Slovakia, Taiwan, and Yemen and countries in 
Country Group D:2 (see Supplement No. 1 to Part 740 of this 
subchapter), excluding Iran.
    (2) Supercomputer safeguards plan. Following interagency review 
of the application, BXA will instruct the exporter to submit a 
supercomputer safeguards plan signed by the ultimate consignee and 
certified by the export control authorities of the importing 
country. The safeguards plan must indicate that the ultimate 
consignee agrees to implement those safeguards required by BXA as a 
condition of issuing the license. BXA will inform exporters 
concerning which of the following safeguards will be required as 
license conditions:
    (i) The applicant will assume responsibility for providing 
adequate security against physical diversion of the supercomputer 
during shipment (e.g., delivery by either attended or monitored 
shipment, using the most secure route possible--this precludes using 
the services or facilities of any country listed in Country Group 
D:1 (see Supplement No. 1 to Part 740 of this subchapter), and Iran, 
Syria, Cuba, Iraq, North Korea, and Libya.
    (ii) There will be no reexport or intra-country transfer of the 
supercomputer without prior written authorization from BXA.
    (iii) The supercomputer systems will be used only for those 
activities approved on the license or reexport authorization.
    (iv) There will be no changes either in the end-users or the 
end-uses indicated on the license without prior written 
authorization by BXA.
    (v) Only software that supports the approved end-uses will be 
shipped with the computer system.
    (vi) The end-user will station security personnel at the 
computer using facility to ensure that the applicable security 
measures are implemented.
    (vii) The exporter will station representatives at the computer-
using facility, or make such individuals readily available, to guide 
the security personnel in the implementation and operation of the 
security measures.
    (viii) The security personnel will undertake the following 
measures under the guidance of the exporter's representatives:
    (A) The physical security of the computer using facility;
    (B) The establishment of a system to ensure the round-the-clock 
supervision of computer security;
    (C) The inspection, if necessary, of any program or software to 
be run on the computer system in order to ensure that all usage 
conforms to the conditions of the license;
    (D) The suspension, if necessary, of any run in progress and the 
inspection of any output generated by the supercomputer to determine 
whether the program runs or output conform with the conditions of 
the license;
    (E) The inspection of usage logs daily to ensure conformity with 
the conditions of the license and the retention of records of these 
logs for at least a year;
    (F) The determination of the acceptability of computer users to 
ensure conformity with the conditions of the license;
    (G) The immediate reporting of any security breaches or 
suspected security breaches to the government of the importing 
country and to the exporter's representatives;
    (H) The execution of the following key tasks:
    (1) Establishment of new accounts;
    (2) Assignment of passwords;
    (3) Random sampling of data;
    (4) Generation of daily logs;
    (I) The maintenance of the integrity and security of tapes and 
data files containing archived user files, log data, or system 
backups.
    (ix) The exporter's representatives will be present when certain 
key functions are being carried out (e.g., the establishment of new 
accounts, the assignment of passwords, the random sampling of data, 
the generating of daily logs, the setting of limits to computer 
resources available to users in the development mode, the 
certification of programs for conformity to the approved end-uses 
before they are allowed to run in the production mode, and the 
modification to previously certified production programs).
    (x) The security personnel and the exporter's representatives 
will provide monthly reports on the usage of the supercomputer 
system and on the implementation of the safeguards.
    (xi) The supercomputer system will be housed in one secure 
building and protected against theft and unauthorized entry at all 
times.
    (xii) Restricted nationals will not be allowed access to 
supercomputers:
    (A) No physical or computational access to supercomputers may be 
granted to restricted nationals without prior written authorization 
from BXA, except that commercial consignees are prohibited only from 
giving such nationals user-accessible programmability without prior 
written authorization;
    (B) No passwords or IDs may be issued to restricted nationals;
    (C) No work may be performed on the supercomputer on behalf of 
restricted nationals; and
    (D) No conscious or direct ties may be established to networks 
(including their subscribers) operated by restricted nationals.
    (xiii) Physical access to the supercomputer, the operator 
consoles, and sensitive storage areas of the computer using facility 
will be controlled by the security personnel, under the guidance and 
monitoring of the exporter's representatives, and will be limited to 
the fewest number of people needed to maintain and run the 
supercomputer system.
    (xiv) The supercomputer will be equipped with the necessary 
software to: permit access to authorized persons only, detect 
attempts to gain unauthorized access, set and maintain limits on 
usage, establish accountability for usage, and generate logs and 
other records of usage. This software will also maintain the 
integrity of data and program files, the accounting and audit 
system, the password or computational access control system, and the 
operating system itself.
    (A) The operating system will be configured so that all jobs can 
be designated and tracked as either program development jobs or as 
production jobs.
    (B) In the program development mode, users will be free, 
following verification that their application conforms to the agreed 
end-use, to create, edit, or modify programs, to use utilities such 
as editors, debuggers, or compilers and to verify program operation. 
Programs in the development mode will be subject to inspection of 
any program or software to be run on the computer system in order to 
ensure that all usage conforms to the conditions of the license.
    (C) In the production mode, users will have access to the full 
range of computer resources, but will be prohibited from modifying 
any program or using utilities that could modify any program. Before 
being allowed to run in the production mode, a program will have to 
be certified for conformity to approved end-uses by the security 
personnel and the exporter's representatives.
    (D) Programs certified for execution in the production mode will 
be protected from unauthorized modification by appropriate software 
and physical security measures. Any modifications to previously 
certified production programs will be approved by the security 
personnel under the guidance and monitoring of the exporter's 
representatives.
    (E) The supercomputer will be provided with accounting and audit 
software to ensure that detailed logs are maintained to record all 
computer usage. A separate log of security-related events will also 
be kept.
    (F) For each job executed in the production mode, the operating 
system will record execution characteristics in order to permit 
generation of a statistical profile of the program executed.
    (xv) The source code of the operating system will be accessible 
only to the exporter's representatives. Only those individuals will 
make changes in this source code.
    (xvi) The security personnel, under the guidance of the 
exporter's representatives, [[Page 25329]] will change passwords for 
individuals frequently and at unpredictable intervals.
    (xvii) The security personnel, under the guidance of the 
exporter's representatives, will have the right to deny passwords to 
anyone. Passwords will be denied to anyone whose activity does not 
conform to the conditions of the license.
    (xviii) Misuse of passwords by users will result in denial of 
further access to the supercomputer.
    (xix) The exporter's representatives will install a strict 
password system and provide guidance on its implementation.
    (xx) Only the exporter's representatives will be trained in 
making changes in the password system and only they will make such 
changes.
    (xxi) No supercomputer will be networked to other computers 
outside the supercomputer center without prior authorization from 
BXA.
    (xxii) Generally, remote terminals will not be allowed outside 
the computer using facility without prior authorization by BXA. If 
remote terminals are specifically authorized by the license:
    (A) The terminals will have physical security equivalent to the 
safeguards at the computer using facility;
    (B) The terminals will be constrained to minimal amounts of 
computer resources (CPU time, memory access, number of input-output 
operations, and other resources);
    (C) The terminals will not be allowed direct computational 
access to the supercomputer (i.e., the security personnel, under the 
guidance of the exporter's representatives, will validate the 
password and identity of the user of any remote terminals before any 
such user is permitted to access the supercomputer)--all terminals 
will be connected to the supercomputer system by a dedicated access 
line and a network access controller.
    (xxiii) There will be no direct input to the supercomputer from 
remote terminals. Any data originating from outside the computer 
using facility, except for direct input from terminals within the 
same compound as the computer using facility, will first be 
processed by a separate processor or network access controller in 
order to permit examination of the data prior to its entry into the 
supercomputer.
    (xxiv) The exporter will perform all maintenance of the 
supercomputer system.
    (xxv) Spare parts kept on site will be limited to the minimum 
amount. Spares will be kept in an area accessible only to the 
exporter's representatives. These representatives will maintain a 
strict audit system to account for all spare parts.
    (xxvi) No development or production technology on the 
supercomputer system will be sent with the supercomputer to the 
ultimate consignee.
    (xxvii) The end-user must immediately report any suspicions or 
facts concerning possible violations of the safeguards to the 
exporter and to the export control authorities of the importing 
country.
    (xxviii) The exporter must immediately report any information 
concerning possible violations of the safeguards to BXA. A violation 
of the safeguards might constitute grounds for suspension or 
termination of the license, preventing the shipment of unshipped 
spare parts, or the denial of additional licenses for spare parts, 
etc.
    (xxix) The end-user will be audited quarterly by an independent 
consultant who has been approved by the export control authorities 
of the importing and exporting countries, but is employed at the 
expense of the end-user. The consultant will audit the supercomputer 
usage and the implementation of the safeguards.
    (xxx) The installation and operation of the supercomputer will 
be coordinated and controlled by the following management structure:
    (A) Steering Committee. The Steering Committee will be comprised 
of nationals of the importing country who will oversee the 
management and operation of the supercomputer.
    (B) Security Staff. The Security Staff will be selected by the 
end-user or the government of the importing country to ensure that 
the required safeguards are implemented. This staff will be 
responsible for conducting an annual audit to evaluate physical 
security, administrative procedures, and technical controls.
    (C) Technical Consultative Committee. This committee will 
comprise technical experts from the importing country and the 
exporting company who will provide guidance in operating and 
maintaining the supercomputer. At least one member of the committee 
will be an employee of the exporter. The committee will approve all 
accounts and maintain an accurate list of all users. In addition, 
the committee will advise the Steering Committee and the Security 
Staff concerning the security measures needed to ensure compliance 
with the safeguards required by the license.
    (xxxi) An ultimate consignee who is a multiple-purpose end-user, 
such as a university, will establish a peer review group comprising 
experts who represent each department or application area authorized 
for use on the supercomputer under the conditions of the license. 
This group shall have the following responsibilities:
    (A) Review all requests for supercomputer usage and make 
recommendations concerning the acceptability of all projects and 
users;
    (B) Submit these recommendations to the Security Staff and 
Technical Consultative Committee for review and approval (see 
paragraph (c)(2)(xxviii) of this Supplement);
    (C) Establish acceptable supercomputer resource parameters for 
each project and review the results to verify their conformity with 
the authorized end-uses, restrictions, and parameters; and
    (D) Prepare monthly reports that would include a description of 
any runs exceeding the established parameters and submit them to the 
security staff.
    (xxxii) The end-user will also cooperate with any post-shipment 
inquiries or inspections by the U.S. Government or exporting company 
officials to verify the disposition and/or use of the supercomputer, 
including access to the following:
    (A) Usage logs, which should include, at a minimum, computer 
users, dates, times of use, and amount of system time used;
    (B) Computer access authorization logs, which should include, at 
a minimum, computer users, project names, and purpose of projects.
    (xxxiii) The end-user will also cooperate with the U.S. 
Government or exporting company officials concerning the physical 
inspection of the computer using facility, on short notice, at least 
once a year and will provide access to all data relevant to 
supercomputer usage. This inspection will include:
    (A) Analyzing any programs or software run on the supercomputer 
to ensure that all usage complies with the authorized end-uses on 
the license. This will be done by examining user files (e.g., source 
codes, machine codes, input/output data) that are either on-line at 
the time of the inspection or that have been previously sampled and 
securely stored;
    (B) Checking current and archived usage logs for conformity with 
the authorized end-uses and the restrictions imposed by the license; 
and
    (C) Verifying the acceptability of all computer users in 
conformity with the authorized end-uses and the restrictions imposed 
by the license.
    (xxxiv) Usage requests that exceed the quantity of monthly CPU 
time specified on the license shall not be approved without prior 
written authorization from BXA. Requests for computational access 
approval shall include a description of the intended purpose for 
which access is sought.
    (3) Certification by export control authorities of importing 
country.  (i) The following importing government certification is 
required:
    This is to certify that (name of ultimate consignee) has 
declared to (name of appropriate foreign government agency) that the 
supercomputer (model name) will be used only for the purposes 
specified in the end-use statement and that the ultimate consignee 
will establish and adhere to all the safeguard conditions and 
perform all other undertakings described in the end-use statement.
    The (name of appropriate foreign government agency) will advise 
the United States Government of any evidence that might reasonably 
indicate the existence of circumstances (e.g., transfer of 
ownership) that could affect the objectives of the security 
safeguard conditions.
    (ii) Other importing government assurances may be required on a 
case-by-case basis regarding the prohibited activities set forth in 
the licensing policy for these countries.
    (4) Supporting documentation. (i) Exports. Applications to 
export supercomputers to these countries must be accompanied by one 
of the following supporting documents, as required by Part 748 of 
this subchapter:
    (A) Form BXA-629P (Statement by Ultimate Consignee and 
Purchaser);
    (B) International Import Certificate (IIC);
    (C) Indian Import Certificate;
    (D) Bulgarian, Czech, Hungarian, Polish, Romanian, or Slovak 
Import Certificates.
    (ii) Reexports. Applications to reexport supercomputers to the 
following countries must be accompanied by the necessary supporting 
documents, as required by Part 748 of this subchapter: 
[[Page 25330]] 
    (A) Bulgaria, Czech Republic, Hungary, Poland, Romania, and 
Slovakia. Reproduced copies of the Bulgarian, Czech, Hungarian, 
Polish, Romanian, and Slovak Import Certificates;
    (B) India. A reproduced copy of the Indian Import Certificate;
    (C) South Africa. A Form BXA-629P (Statement by Ultimate 
Consignee and Purchaser).

(d) Prohibited Activities

    An ultimate consignee who is authorized to use a supercomputer, 
except consignees authorized in accordance with licensing policy for 
supplier countries and countries subject to minimum security 
conditions, may not be involved in activities related to any of the 
following:
    (1) The design, development, production or use of:
    (i) Nuclear explosive devices, including any components or 
subsystems of such devices;
    (ii) Complete rocket systems or unmanned air vehicle systems 
capable of delivering nuclear weapons, including any components or 
subsystems of such devices;
    (2) The design, development, production, use, or maintenance of 
nuclear fuel cycle facilities (including facilities related to 
nuclear propulsion) or heavy water production plants in countries 
that are listed in Country Group D:1 (see Supplement No. 1 to Part 
740 of this subchapter);
    (3) Any projects or facilities for the design, development, 
production, stockpiling, or use of chemical or biological weapons;
    (4) A violation of the export laws and regulations of a supplier 
country or involvement in clandestine procurement activities or 
other activities where there is a significant risk of diversion from 
the authorized end-uses or a likelihood that supercomputer security 
safeguards would not be effectively implemented.

(e) Definitions

    The following are definitions of terms as used in this 
Supplement:
    (1) Authorized person. A person whose identity and legitimate 
bona fides have been established by the ultimate consignee. 
Restricted nationals (see paragraph (e)(7) of this Supplement) will 
not be considered to be authorized persons for the purposes of this 
Supplement.
    (2) Commercial end-user. An end-user whose only authorized end-
uses are those described in the list of approved commercial 
activities in Sec. 742.12(b)(6) of this Part.
    (3) Computational access or usage. Any data processing, or data, 
program, or file manipulation (retrieval), done on the 
supercomputer.
    (4) Independent consultant. A nongovernment firm in the 
importing country that is experienced in informatics auditing 
procedures and not owned, affiliated, or controlled by the end-user 
or by the government of the importing country.
    (5) Multiple-purpose end-use. Authorized end-uses in several 
areas of expertise with a variety of application packages (e.g., 
university).
    (6) National. The term national as used in this section means:
    (i) Any individual;

    (ii) Any official, agent, or representative of a corporation, 
partnership, association, company, or any other kind of 
organization; or

    (iii) Any official, agent, or representative of a government, 
government agency, or any other government organization.

    (7) Restricted nationals. The term restricted nationals as used 
in this Supplement means:

    (i) Nationals of countries subject to the licensing policy 
described in Sec. 742.12(b)(4) of this Part (i.e., countries in 
Country Group D:1 (see Supplement No. 1 to Part 740 of this 
subchapter) and Cuba, Iran, Iraq, Libya, North Korea, and Syria), 
except those individuals who have legally immigrated and have become 
permanent residents of the United States or Japan, or any of the 
countries listed in paragraph (a)(1) of this Supplement; and

    (ii) Nationals of the countries listed in Sec. 742.12(b)(3) of 
this Part (i.e., Bahrain, Czech Republic, Egypt, Jordan, Lebanon, 
Poland, Qatar, Slovakia, Taiwan, and Yemen and countries in Country 
Group D:2 (see Supplement No. 1 to Part 740 of this subchapter), 
excluding Iran) that are involved in prohibited activities as set 
forth in paragraph (d) of this Supplement.

    (8) Single-purpose end-use. An authorized end-use in one area of 
expertise (e.g., oil exploration).

    (9) The following are terms defined elsewhere in the EAR:

    (i) Computer using facility;

    (ii) Cryptography;

    (iii) Network access controller;

    (iv) Program;

    (v) Software;

    (vi) Source code;

    (vii) Technology;

    (viii) Use; and

    (ix) User-accessible programmability.

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

Sec.
744.1 General provisions.

744.2 Restrictions on certain nuclear end-uses.

744.3 Restrictions on certain missile end-uses.

744.4 Restrictions on certain chemical and biological weapons end-
uses.

744.5 Restrictions on certain naval nuclear propulsion end-uses.

744.6 Restrictions on certain activities of U.S. persons.

744.7 Restrictions on certain exports to and for the use of certain 
foreign vessels or aircraft.

744.8 Restrictions on certain exports to all countries for Libyan 
aircraft.

Supplement No. 1 to Part 744--Missile Technology Projects

Supplement No. 2 to Part 744--The Enhanced Proliferation ControL 
Initiative (EPCI) [Catch-all Item List] [Positive List] [Product Scope 
for End-Use Limitation]

Supplement No. 3 to Part 744--BXA's ``Know Your Customer'' Guidance

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 744.1  General provisions.

    (a) Introduction. This part contains prohibitions against exports, 
reexports, and selected transfers to certain end-users and end-uses as 
introduced under General Prohibition Four and prohibitions against 
exports or reexports to certain end-uses as introduced, under General 
Prohibition Five. Sections 744.2, 744.3, 744.4, and 744.5 prohibit 
exports and reexports of items subject to the EAR to defined nuclear, 
missile, chemical and biological weapons, and nuclear maritime end 
uses. Section 744.6 prohibits certain activities by U.S. persons in 
support of certain missile and chemical and biological weapons end uses 
regardless of whether that support involves the export or reexport of 
items subject to the EAR. Sections 744.7 and 744.8 prohibit exports and 
reexports of certain items for certain aircraft and vessels. In 
addition, these sections include license review standards for export 
license applications submitted as required by these sections. It should 
also be noted that Part 764 of this subchapter prohibits exports, 
reexports and certain in-country transfers of items subject to the EAR 
to denied parties.
    (b) Steps. The following are steps you should follow in using the 
provisions of this part:
    (1) Review end-use and end-user prohibitions. First, review each 
end-use and end-user prohibition described to learn the scope of these 
prohibitions.
    (2) Determine applicability. Second, determine whether any of the 
end-use and end-user prohibitions described in this part are applicable 
to your planned export, reexport, or other activity. See Supplement No. 
3 to part 744 for guidance.


Sec. 744.2  Restrictions on certain nuclear end-uses.

    (a) General prohibition. In addition to the validated license 
requirements for items specified on the CCL, you may not export or 
reexport to any destination, [[Page 25331]] other than countries in the 
Nuclear Suppliers Group as indicated at Country Group A:4 in Supplement 
1 to part 740 of this subchapter, any item subject to the EAR without a 
validated license if at the time of the export or reexport you know or 
have reason to know the item will be used directly or indirectly in any 
one or more of the following activities described in paragraphs (a)(1), 
(a)(2), and (a)(3) of this section:
    (1) Nuclear explosive activities. Nuclear explosive activities, 
including research on or development, design, manufacture, 
construction, testing or maintenance of any nuclear explosive device, 
or components or subsystems of such a device.<SUP>1,<SUP>2

    \1\ Nuclear explosive devices and items specifically designed or 
specially modified for use in designing or fabricating nuclear 
weapons or nuclear explosive devices are subject to export licensing 
or other requirements of the Office of Defense Trade Controls, U.S. 
Department of State, or the licensing or other restrictions 
specified in the Atomic Energy Act of 1964, as amended. Similarly, 
items specifically designed or specifically modified for use in 
devising, carrying out, or evaluating nuclear weapons tests or 
nuclear explosions (except such items as are in normal commercial 
use for other purposes) are subject to the same requirements.
    \2\ Also see Sec. 748.4 of this subchapter for special 
provisions relating to technical data for maritime nuclear 
propulsion plants and other commodities.
---------------------------------------------------------------------------

    (2) Unsafeguarded nuclear activities. Activities including research 
on or development, design, manufacture, construction, operation, or 
maintenance of any nuclear reactor, critical facility, facility for the 
fabrication of nuclear fuel, facility for the conversion of nuclear 
material from one chemical form to another, or separate storage 
installation, where there is no obligation to accept International 
Atomic Energy Agency (IAEA) safeguards at the relevant facility or 
installation when it contains any source or special fissionable 
material (regardless of whether or not it contains such material at the 
time of export), or where any such obligation is not met.
    (3) Safeguarded and unsafeguarded nuclear activities. Safeguarded 
and unsafeguarded nuclear fuel cycle activities, including research on 
or development, design, manufacture, construction, operation or 
maintenance of any of the following facilities, or components for such 
facilities:<SUP>3

    \3\ Such activities may also require a specific authorization 
from the Secretary of Energy pursuant to Sec. 57.b.(2) of the Atomic 
Energy Act of 1954, as amended, as implemented by the Department of 
Energy's regulations published in 10 CFR 810.
---------------------------------------------------------------------------

    (i) Facilities for the chemical processing of irradiated special 
nuclear or source material;
    (ii) Facilities for the production of heavy water;
    (iii) Facilities for the separation of isotopes of source and 
special nuclear material; or
    (iv) Facilities for the fabrication of nuclear reactor fuel 
containing plutonium.
    (b) Additional prohibition on exporters informed by BXA. BXA may 
inform an exporter or reexporter, either by specific notice or through 
amendment to the regulations in this subchapter, that a license is 
required for export or reexport of specified items to specified end-
users, because BXA has determined that there is an unacceptable risk of 
use in or diversion to any of the activities described in paragraph (a) 
of this section. Specific notice is to be given only by, or at the 
direction of, the Deputy Assistant Secretary for Export Administration. 
When such notice is provided orally, it will be followed by a written 
notice within two working days signed by the Deputy Assistant Secretary 
for Export Administration. The absence of any such notification does 
not excuse the exporter or reexporter from compliance with the license 
requirements of this section.
    (c) Exceptions. Despite the prohibitions described in paragraph (a) 
and (b) of this section, you may export technology subject to the EAR 
under License Exception 13 for operation technology and License 
Exception 14 for sales technology but only to and for use in countries 
listed in Country Group A:1 (COCOM Successor Regime) (see Supplement 
No. 1 to part 740 of this subchapter) and New Zealand. All the terms 
and conditions of License Exception 13 apply except that this exception 
may only be used for exports to the countries listed in Country Group 
A:1 and New Zealand notwithstanding the provisions of part 740 of this 
subchapter.
    (d) License review standards. The following factors are among those 
used by the United States to determine whether to grant or deny license 
applications required under this section:
    (1) Whether the commodities, software, or technology to be 
transferred are appropriate for the stated end-use and whether that 
stated end-use is appropriate for the end-user;
    (2) The significance for nuclear purposes of the particular 
commodity, software, or technology;
    (3) Whether the commodities, software, or technology to be exported 
are to be used in research on or for the development, design, 
manufacture, construction, operation, or maintenance of any 
reprocessing or enrichment facility;
    (4) The types of assurances or guarantees given against use for 
nuclear explosive purposes or proliferation in the particular case;
    (5) Whether the end-user has been engaged in clandestine or illegal 
procurement activities;
    (6) Whether an application for a license to export to the end-user 
has previously been denied, or whether the end-use has previously 
diverted items received under a license or license exception to 
unauthorized activities;
    (7) Whether the export would present an unacceptable risk of 
diversion to a nuclear explosive activity or unsafeguarded nuclear 
fuel-cycle activity described in Sec. 744.3 of this part; and
    (8) The nonproliferation credentials of the importing country, 
based on consideration of the following factors:
    (i) Whether the importing country is a party of the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco) (see Supplement 
No. 2 to part 742 of this subchapter), or to a similar international 
legally-binding nuclear nonproliferation agreement;
    (ii) Whether the importing country has all of its nuclear 
activities, facilities or installations that are operational, being 
designed, or under construction, under International Atomic Energy 
Agency (IAEA) safeguards or equivalent full scope safeguards;
    (iii) Whether there is an agreement for cooperation in the civil 
uses of atomic energy between the U.S. and the importing country;
    (iv) Whether the actions, statements, and policies of the 
government of the importing country are in support of nuclear non-
proliferation and whether that government is in compliance with its 
international obligations in the field of non-proliferation;
    (v) The degree to which the government of the importing country 
cooperates in non-proliferation policy generally (e.g., willingness to 
consult on international non-proliferation issues);
    (vi) Intelligence data on the importing country's nuclear 
intentions and activities.


Sec. 744.3  Restrictions on certain missile end-uses.

    (a) General prohibition. In addition to the license requirements 
for items specified on the CCL, you may not export or reexport an item 
subject to the EAR to any destination, including Canada, without a 
license if at the time of the export or reexport you know the item:
    (1) Is destined to or for a project listed in the footnote to 
Country Group D:4 [[Page 25332]] (see Supplement No. 1 to part 740 of 
this subchapter); or
    (2) Will be used in the design, development, production or use of 
missiles in or by a country listed in Country Group D:4, whether or not 
that use involves a listed project.
    (b) Additional prohibition on exporters informed by BXA. BXA may 
inform the exporter or reexporter, either individually or through 
amendment to the regulations in this subchapter, that a license is 
required for a specific export, or for exports of specified items to a 
certain end-user, because there is an unacceptable risk of use in or 
diversion to activities described in paragraph (a) of this section, 
anywhere in the world. Specific notice is to be given only by, or at 
the direction of, the Deputy Assistant Secretary for Export 
Administration. When such notice is provided orally, it will be 
followed by a written notice within two working days signed by the 
Deputy Assistant Secretary for Export Administration. However, the 
absence of any such notification does not excuse the exporter from 
compliance with the validated license requirements of paragraph (a) of 
this section. An illustrative list of projects is included in a 
footnote to Country Group D:4. Exporters are deemed to have been 
informed that an individual validated license is required to export to 
these projects. Exporters should be aware that the list of projects in 
Country Group D:4 is not comprehensive; extra caution should be 
exercised when making any shipments to a country listed in Country 
Group D:4.
    (c) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraph (a) and (b) of this section.
    (d) License review standards for certain missile end-uses. (1) 
Applications to export the items subject to this section will be 
considered on a case-by-case basis to determine whether the export 
would make a material contribution to the proliferation of missiles. 
When an export is deemed to make a material contribution, the license 
will be denied.
    (2) The following factors are among those that will be considered 
to determine what action should be taken on an application required by 
this section:
    (i) The specific nature of the end-use;
    (ii) The significance of the export in terms of its contribution to 
the design, development, production, or use of missiles;
    (iii) The capabilities and objectives of the missile and space 
programs of the recipient country;
    (iv) The non-proliferation credentials of the importing country;
    (v) The types of assurances or guarantees against design, 
development production or use, of missiles delivery purposes that are 
given in a particular case; and
    (vi) The existence of a pre-existing contract.


Sec. 744.4  Restrictions on certain chemical and biological weapons 
end-uses.

    (a) General prohibition. In addition to the license requirements 
for items specified on the CCL, you may not export or reexport an item 
subject to the EAR to any destination, including Canada, without a 
license if at the time of the export or reexport you know the item will 
be used in the design, development, production, stockpiling, or use of 
chemical or biological weapons in or by a country listed in Country 
Group D:5 (see Supplement No. 1 to part 740 of this subchapter).
    (b) Additional prohibition on exporters informed by BXA. BXA may 
inform the exporter or reexporter, either individually or through 
amendment to the regulations in this subchapter, that a license is 
required for a specific export, or for export of specified items to a 
certain end-user, because there is an unacceptable risk of use in or 
diversion to such activities, anywhere in the world. Specific notice is 
to be given only by, or at the direction of, the Deputy Assistant 
Secretary for Export Administration. When such notice is provided 
orally, it will be followed by a written notice within two working days 
signed by the Deputy Assistant Secretary for Export Administration. 
However, the absence of any such notification does not excuse the 
exporter from compliance with the validated license requirements of 
paragraph (a) of this section.
    (c) Exceptions. No license exceptions apply to the prohibitions 
described in paragraphs (a) and (b) of this section.
    (d) License review standards. (1) Applications to export or 
reexport items subject to this section will be considered on a case-by-
case basis to determine whether the export or reexport would make a 
material contribution to the design, development, production, 
stockpiling, or use of chemical or biological weapons. When an export 
is deemed to make such a contribution, the license will be denied.
    (2) The following factors are among those that will be considered 
to determine what action should be taken on an application required 
under this section:
    (i) The specific nature of the end-use;
    (ii) The significance of the export in terms of its contribution to 
the design, development, production, stockpiling, or use of chemical or 
biological weapons;
    (iii) The non-proliferation credentials of the importing country;
    (iv) The types of assurances or guarantees against design, 
development, production, stockpiling, or use of chemical or biological 
weapons that are given in a particular case; and
    (v) The existence of a pre-existing contract.<SUP>4

    \4\See Supplement No. 1 to part 742 for relevant contract 
sanctity dates.
---------------------------------------------------------------------------


Sec. 744.5  Restrictions on certain naval nuclear propulsion end-uses.

    (a) General prohibition. In addition to the license requirements 
for items specified on the CCL, you may not export or reexport certain 
technology subject to the EAR to any destination, including Canada, 
without a license if at the time of the export or reexport you know the 
item is for use in connection with a foreign maritime nuclear 
propulsion project. This prohibition applies to any technology relating 
to maritime nuclear propulsion plants, their land prototypes, and 
special facilities for their construction, support, or maintenance, 
including any machinery, devices, components, or equipment specifically 
developed or designed for use in such plants or facilities.
    (b) Exceptions. The exceptions provided at part 740 of this 
subchapter do not apply to the prohibitions described in paragraph (a) 
of this section.
    (c) License review standards. It is the policy of the United States 
Government not to participate in and not to authorize United States 
firms or individuals to participate in foreign naval nuclear propulsion 
plant projects, except under an Agreement for Cooperation on naval 
nuclear propulsion executed in accordance with Sec. 123(d) of the 
Atomic Energy Act of 1954. However, it is the policy of the United 
States Government to encourage United States firms and individuals to 
participate in maritime (civil) nuclear propulsion plant projects in 
friendly foreign countries provided that United States naval nuclear 
propulsion information is not disclosed.


Sec. 744.6  Restrictions on certain activities of U.S. persons.

    (a) General prohibitions--(1) Activities related to exports. (i) No 
U.S. person may, without a license from BXA, export, reexport, or 
transfer, in the United States or in any other country, 
[[Page 25333]] any item where that person knows that such item:
    (A) Will be used in the design, development, production, or use of 
nuclear explosive devices in or by a country listed in Country Group 
D:2 (see Supplement No. 1 to part 740 of this subchapter).
    (B) Will be used in the design, development, production, or use of 
missiles in or by a country listed in Country Group D:4 (see Supplement 
No. 1 to part 740 of this subchapter); or
    (C) Will be used in the design, development, production, 
stockpiling, or use of chemical or biological weapons in or by a 
country listed in Country Group D:3 (see Supplement No. 1 to part 740 
of this subchapter).
    (ii) No U.S. person shall, without a license from BXA, knowingly 
support an export, reexport, or transfer that does not have a license 
as required by this section. Support means any action, including 
financing, transportation, and freight forwarding, by which a person 
facilitates an export, reexport, or transfer without being the actual 
exporter or reexporter.
    (2) Other activities unrelated to exports. No U.S. person shall, 
without a license from BXA:
    (i) Perform any contract, service, or employment that the U.S. 
person knows will directly assist in the design, development, 
production, or use of nuclear explosives devices in or by a country 
listed in Country Group D:2 (see Supplement No. 1 to part 740 of this 
subchapter);
    (ii) Perform any contract, service, or employment that the U.S. 
person knows will directly assist in the design, development, 
production, or use of missiles in or by a country listed in Country 
Group D:4 (see Supplement No. 1 to part 740 of this subchapter); or
    (iii) Perform any contract, service, or employment that the U.S. 
person knows directly will directly assist in the design, development, 
production, stockpiling, or use of chemical or biological weapons in or 
by a country listed in Country Group D:3 (see Supplement No. 1 to part 
740 of this subchapter).
    (3) Whole plant requirement. No U.S. person shall, without a 
license from BXA, participate in the design, construction, export, or 
reexport of a whole plant to make chemical weapons precursors 
identified in ECCN 1C60, in countries other than those listed in 
Country Group A:3 (Australia Group) (See Supplement No. 1 to part 740 
of this subchapter).
    (b) Additional prohibitions on U.S. persons informed by BXA. BXA 
may inform U.S. persons, either individually or through amendment to 
the regulations in this subchapter, that a license is required because 
an activity could involve the types of participation and support 
described in paragraph (a) of this section anywhere in the world. 
Specific notice is to be given only by, or at the direction of, the 
Deputy Assistant Secretary for Export Administration. When such notice 
is provided orally, it will be followed by a written notice within two 
working days signed by the Deputy Assistant Secretary for Export 
Administration. However, the absence of any such notification does not 
excuse the exporter from compliance with the validated license 
requirements of paragraph (a) of this section.
    (c) Definition of U.S. person. For purposes of this section, the 
term U.S. person includes:
    (1) Any individual who is a citizen of the United States, a 
permanent resident alien of the United States, or a protected 
individual as defined by 8 U.S.C. 1324b(a)(3);
    (2) Any juridical person organized under the laws of the United 
States or any jurisdiction within the United States, including foreign 
branches; and
    (3) Any person in the United States.
    (d) Exceptions. No license exceptions apply to the prohibitions 
described in paragraphs (a) and (b) of this section.
    (e) License review standards. Applications to engage in activities 
otherwise prohibited by this section will be denied if the activities 
would make a material contribution to the design, development, 
production, stockpiling, or use of chemical or biological weapons, or 
of missiles.


Sec. 744.7  Restrictions on certain exports to and for the use of 
certain foreign vessels or aircraft.

    (a) General end-use prohibition. In addition to the license 
requirements for items specified on the CCL, you may not export or 
reexport an item subject to the EAR to, or for the use of, a foreign 
vessel or aircraft, whether an operating vessel or aircraft or one 
under construction, located in any port including a Canadian port, 
unless a License Exception permits the shipment to be made:
    (1) To the country in which the vessel or aircraft is located, and
    (2) To the country in which the vessel or aircraft is registered, 
or will be registered in the case of a vessel or aircraft under 
construction, and
    (3) To the country, including a national thereof, which is 
currently controlling, leasing, or chartering the vessel or aircraft.
    (b) Exception for U.S. and Canadian carriers. (1) Notwithstanding 
the general end-use prohibition in paragraph (a) of this section, 
export may be made of the commodities set forth in paragraph (b)(3) of 
this section, for use by or on a specific vessel or plane of U.S. or 
Canadian registry located at any seaport or airport outside the United 
States or Canada except a port in North Korea or Country Group D:1 
(excluding the PRC and Romania), (see Supplement No. 1 to part 740) 
provided that such commodities are<SUP>5 all of the following:

    \5\ Where a license is required, see Secs. 748.2 and 748.4(g).
---------------------------------------------------------------------------

    (i) Ordered by the person in command or the owner or agent of the 
vessel or plane to which they are consigned;
    (ii) Intended to be used or consumed on board such vessel or plane 
and necessary for its proper operation;
    (iii) In usual and reasonable kinds and quantities during times of 
extreme need, except that usual and reasonable quantities of ship's 
bunkers or aviation fuel are considered to be only that quantity 
necessary for a single onward voyage or flight; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration 
(SED) is filed with the carrier, except that an SED is not required 
when any of the commodities, other than fuel, is exported by U.S. 
airlines to their own aircraft abroad for their use.
    (2) Exports to U.S. or Canadian Airline's Installation or Agent. 
Exports of the commodities set forth in paragraph (e) of this section, 
except fuel, may be made to a U. S. or Canadian airline's installation 
or agent in any foreign destination except North Korea or Country Group 
D:1 (excluding the PRC and Romania), (see Supplement No. 1 to part 740) 
provided such commodities are all of the following:
    (i) Ordered by a U.S. or Canadian airline and consigned to its own 
installation or agent abroad;
    (ii) Intended for maintenance, repair, or operation of aircraft 
registered in either the United States or Canada, and necessary for the 
aircraft's proper operation, except where such aircraft is located in, 
or owned, operated or controlled by, or leased or chartered to, North 
Korea or Country Group D:1 (excluding the PRC) (see Supplement No. 1 to 
part 740) or a national of such country;
    (iii) In usual and reasonable kinds and quantities; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration 
(SED) is filed with the carrier, except that an SED is not required 
when any of these commodities is exported by U.S. airlines to their own 
installations and agents [[Page 25334]] abroad for use in their 
aircraft operations.
    (3) Applicable commodities. This Sec. 740.12(b) applies to the 
commodities listed subject to the provisions in paragraph (b) of this 
section:
    (i) Fuel, except crude petroleum and blends of unrefined crude 
petroleum with petroleum products, which is of non-Naval Petroleum 
Reserves origin or derivation (refer to short supply controls in part 
754 of this subchapter);
    (ii) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements, except crude petroleum, 
provided that any commodities which are listed in Supplement No. 2 to 
part 754 of this subchapter are of non-Naval Petroleum Reserves origin 
or derivation (refer to short supply controls in part 754 of this 
subchapter);
    (iii) Medical and surgical supplies;
    (iv) Food stores;
    (v) Slop chest articles;
    (vi) Saloon stores or supplies; and
    (vii) Equipment and spare parts.


Sec. 744.8  Restrictions on certain exports to all countries for Libyan 
aircraft.

    (a) General end-use prohibition for Libyan aircraft. In addition to 
the license requirements for items specified on the CCL for the items 
specified in paragraph (b) of this section, you may not export or 
reexport such parts and accessories if intended for use in the 
manufacture, overhaul, or rehabilitation in any country of aircraft 
that will be exported or reexported to Libya or Libyan nationals.
    (b) Scope of products subject to end-use prohibition for Libyan 
aircraft. The general end-use prohibition in paragraph (a) of this 
section applies to items controlled by ECCNs 6A08, 6A28, 6A29, 6A30, 
6A90, 7A01, 7A21, 7A02, 7A22, 7A03, 7A23, 7A04, 7A24, 7A05, 7A25, 7A06, 
7A26, 7A27, 7A94, 9A01, 9A21, 9A23, 9A18.a, 9A82.d, 9A91, and 9A94.

Supplement No. 1--Missile Technology Locations and Projects

------------------------------------------------------------------------
              Location                             Projects             
------------------------------------------------------------------------
Bahrain                              ...................................
Brazil.............................  Sonda III, Sonda IV, SS-300, SS-   
                                      1000, MB/EE Series Missile, VLS   
                                      Space Launch Vehicle.             
China..............................  M Series Missiles, CSS-2.          
Egypt                                ...................................
India..............................  Agni, Prithvi, SLV-3 Satellite     
                                      Launch Vehicle, Augmented         
                                      Satellite Launch Vehicle (ASLV),  
                                      Polar Satellite Launch Vehicle    
                                      (PSLV), Geostationary Satellite   
                                      Launch Vehicle (GSLV).            
Iran...............................  Surface-to-Surface Missile Project,
                                      Scud Development Project.         
Iraq                                 ...................................
Israel                               ...................................
Jordan                               ...................................
North Korea........................  No Dong I, Scud Development        
                                      Project.                          
Kuwait                               ...................................
Lebanon                              ...................................
Libya                                ...................................
Oman                                 ...................................
Pakistan...........................  Haft Series Missiles.              
Qatar                                ...................................
Saudi Arabia                         ...................................
South Africa.......................  Surface-to-Surface Missile Project,
                                      Space Launch Vehicle.             
Syria                                ...................................
United Arab Emirates                 ...................................
Yemen                                ...................................
------------------------------------------------------------------------

Supplement No. 2--The Enhanced Proliferation Control Initiative 
(EPCI) [Catch-All Item List] [Positive List] [Product Scope for 
End-Use Limitation]--[Reserved]

Supplement No. 3--BXA's ``Know Your Customer'' Guidance

    Certain provisions in part 744 require an exporter to obtain an 
individual validated license if the exporter ``knows'' that any 
export otherwise eligible for license exception is for end-uses 
involving nuclear, chemical, or biological weapons, or related 
missile delivery systems, in named destinations listed in the 
regulations.
    (a) BXA has issued the following guidance on how individuals and 
firms should act under this knowledge standard. This guidance does 
not change or revise the EAR.
    (1) Decide whether there are ``red flags''. Take into account 
any abnormal circumstances in a transaction that, indicate that the 
export may be destined for an inappropriate end-use, end-user, or 
destination. Such circumstances are referred to as ``red flags''. 
Included among examples of red flags are orders for items that are 
inconsistent with the needs of the purchaser, a customer declining 
installation and testing when included in the sales price or when 
normally requested, or requests for equipment configurations which 
are incompatible with the stated destination (e.g., 120 volts in a 
country with 220 volts). Commerce has developed lists of such red 
flags that are not all-inclusive but are intended to illustrate the 
types of circumstances that should cause reasonable suspicion that a 
transaction will violate the EAR.
    (2) If there are ``red flags'', inquire. If there are no ``red 
flags'' in the information that comes to your firm, you should be 
able to proceed with a transaction in reliance on information you 
have received. That is, absent ``red flags'' (or an express 
requirement in the EAR), there is no affirmative duty upon exporters 
to inquire, verify, or otherwise ``go behind'' the customer's 
representations. However, when ``red flags'' are raised in 
information that comes to your firm, you have a duty to check out 
the suspicious circumstances and inquire about the end-use, end-
user, or ultimate country of destination. The duty to check out 
``red flags'' is not confined to the use of License Exceptions 
affected by the ``know'' or ``reason to know'' language in the EAR. 
Applicants for licenses are required by part 748 of this subchapter 
to obtain documentary evidence concerning the transaction, and 
misrepresentation or concealment of material facts is prohibited, 
both in the licensing process and in all export control documents. 
You can rely upon representations from your customer and repeat them 
in the documents you file unless red flags oblige you to take 
verification steps.
    (3) Do not self-blind. Do not cut off the flow of information 
that comes to your firm in the normal course of business. For 
example, do not instruct the sales force to tell potential customers 
to refrain from discussing the actual end-use, end-user, and 
ultimate country of destination for the product your firm is seeking 
to sell. Do not put on blinders that prevent the learning of 
relevant information. An affirmative policy of steps to avoid 
``bad'' information would not insulate a company from liability, and 
it would usually be considered an aggravating factor in an 
enforcement proceeding.
    (4) Employees need to know how to handle ``red flags''. 
Knowledge possessed by an employee of a company can be imputed to a 
firm so as to make it liable for a violation. This makes it 
important for firms to establish clear policies and effective 
compliance procedures to ensure that such knowledge about 
transactions can be evaluated by responsible senior officials. 
Failure to do so could be regarded as a form of self-blinding.
    (5) Reevaluate all the information after the inquiry. The 
purpose of this inquiry and reevaluation is to determine whether the 
``red flags'' can be explained or justified. If they can, you may 
proceed with the transaction. If the ``red flags'' cannot be 
explained or justified and you proceed, you run the risk of having 
had ``knowledge'' that would make your action a violation of the 
EAR.
    (6) Refrain from the transaction or advise BXA and wait. If you 
continue to have reasons for concern after your inquiry, then you 
should either refrain from the transaction or submit all the 
relevant information to BXA in the form of an application for a 
validated license or in such other form as BXA may specify.
    (b) Industry has an important role to play in preventing exports 
and reexports contrary to the national security and foreign policy 
interests of the United States. BXA will continue to work in 
partnership with industry to make this front line of defense 
effective, while minimizing the regulatory burden on exporters. If 
you have any question about whether you have encountered a ``red 
flag'', you may contact the Office of Export Enforcement at 1-800-
424-2980 or the Office of Exporter Services at (202)482-4532.
[[Page 25335]]

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

Sec.
746.1  Introduction.
746.2  Cuba.
746.3  Iraq.
746.4  Libya.
746.5  North Korea.
746.6  The Federal Republic of Yugoslavia (Serbia and Montenegro), 
Bosnia-Herzegovina, Croatia.
746.7  Rwanda.
746.8 through Sec. 746.16  [Reserved]
746.17  Humanitarian License.

Supplement No. 1 to Part 746--Human-Needs Items

Supplement No. 2 to Part 746--United Nations Embargoes or Other 
Special Sanctions Administered by the Office of Foreign Assets 
Control: Angola

Supplement No. 3 to Part 746--United Nations Arms Embargoes 
Administered by the Department of State: Liberia, Somalia and 
Countries of the Former Yugoslavia (Bosnia-Herzegovina, Croatia, 
Former Yugoslav Republic of Macedonia, Serbia, Montenegro, 
Slovenia)

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 746.1  Introduction.

    (a) Sections 746.2 through 746.6 of this part give the license 
requirements and licensing policies for exports to Cuba, Iraq, Libya, 
North Korea, and the former Yugoslavia. All the items on the Commerce 
Control List (CCL) require a license for export or reexport to these 
destinations. In addition, most items subject to the EAR, but not 
included on the CCL, require a license to these destinations. Most 
items requiring a license to these destinations are subject to a 
general policy of denial. The Department of the Treasury's Office of 
Foreign Assets Control (OFAC) authorizes by general license (as defined 
in 31 CFR part 500) all transactions incident to the export of goods 
from the U.S. to Cuba and North Korea authorized by BXA. No license 
from OFAC is necessary. BXA is also responsible for licensing reexports 
of most items subject to the EAR, but additional authorization is 
required by OFAC if the reexport is being made by persons subject to 
U.S. jurisdiction (as defined in 31 CFR part 500), including foreign 
subsidiaries of U.S. firms. OFAC also controls other transactions by 
U.S. persons involving Cuba or North Korea or specially designated 
nationals of those countries, and exports of non U.S.-origin items by 
U.S. persons from third countries to Cuba or North Korea.
    (b) Section 746.7 of this part explains the special controls on the 
sale or supply to Rwanda of arms and related material of all types. 
Such military-related items are subject to a general policy of denial, 
consistent with a United Nations Security Council Resolution. These 
special controls also complement controls on items included on the U.S. 
Munitions List administered by the Department of State under the 
International Traffic in Arms Regulations (22 CFR parts 120 through 
130).
    (c) Section 746.17 of this part gives the eligibility requirements 
for donations of human-needs items to certain embargoed destinations 
under the Humanitarian License.
    (d) Supplement No. 1 to this part lists the human-needs items that 
may be approved under the Humanitarian License or that may be approved 
under regular license procedures when not qualifying for the 
Humanitarian License.
    (e) Supplement No. 2 to this part provides you with general 
information on United Nations sanctions administered by the Department 
of the Treasury's Office of Foreign Assets Control (OFAC) (31 CFR part 
590) on Angola.
    (f) Supplement No. 3 to this part provides you with general 
information on United Nations arms embargoes administered by the 
Department of State (22 CFR parts 120 through 130) on all the countries 
of the former Yugoslavia (Bosnia-Herzegovina, Croatia, the Former 
Yugoslav Republic of Macedonia, Serbia, Montenegro, and Slovenia), 
Liberia and Somalia.


Sec. 746.2  Cuba.

    (a) License requirements. You will need a license to export or 
reexport all items subject to the EAR (see part 732 of this subchapter 
for the scope of items subject to the EAR) to Cuba, except as follows:
    (1) License Exceptions. You may export without a license if your 
transaction meets all the applicable terms and conditions of any of the 
following License Exceptions. To determine the scope and eligibility 
requirements, you will need to turn to the sections or specific 
paragraphs of part 740 of this subchapter (License Exceptions).
    (i) Temporary Exports (TMP) by the news media (see Sec. 740.8(b)(8) 
of this subchapter).
    (ii) Operating Technology and Software (OTS) for legally exported 
commodities (see Sec. 740.17 of this subchapter).
    (iii) Sales Technology (STS) (see Sec. 740.18 of this subchapter).
    (iv) Software Updates (SUD) for legally exported software (see 
Sec. 740.19 of this subchapter).
    (v) Parts (PTS) for one-for-one replacement in certain legally 
exported commodities (see Sec. 740.10 of this subchapter).
    (vi) Baggage (BAG) (see Sec. 740.12 of this subchapter).
    (vii) Governments (GOV) (see Sec. 740.15 of this subchapter).
    (viii) Gift parcels (GFT) (see Sec. 740.16 of this subchapter).
    (ix) Items in transit (TUS) from Canada through the U.S. (see 
Sec. 740.9(b)(4) of this subchapter).
    (x) Aircraft and Vessels (A&V) for certain aircraft on temporary 
sojourn (see Sec. 740.13(a) of this subchapter).
    (2) [Reserved.]
    (b) Licensing policy. Items requiring a license are subject to a 
general policy of denial. Exceptions to the policy of denial are as 
follows:
    (1) Humanitarian License. BXA may issue licenses to organizations 
eligible for the Humanitarian License for exports of donated human-
needs items. See Sec. 746.17 of this part for this license and 
Supplement No. 1 to part 746 for a list of human-needs items that may 
be approved.
    (2) Licenses for donations of human-needs items. BXA will review on 
a case-by-case basis applications for exports of donated human-needs 
items listed in Supplement 1 to part 746 that do not qualify for the 
Humanitarian License. Such applications include single transactions 
involving exports to meet emergency needs.
    (3) Medicines, medical supplies, instruments and equipment. 
Applications to export medicines, medical supplies, instruments and 
equipment will generally be approved, except:
    (i) To the extent restrictions would be permitted under section 
5(m) of the Export Administration Act of 1979, as amended (EAA), or 
section 203(b)(2) of the International Emergency Economic Powers Act;
    (ii) If there is a reasonable likelihood that the item to be 
exported will be used for purposes of torture or other human rights 
abuses;
    (iii) If there is a reasonable likelihood that the item to be 
exported will be reexported;
    (iv) If the item to be exported could be used in the production of 
any biotechnological produce; and
    (v) If it is determined that the United States government is unable 
to verify, by on-site inspection or other means, that the item to be 
exported will be used for [[Page 25336]] the purpose for which it was 
intended and only for the use and benefit of the Cuban people, but this 
exception shall not apply to donations of medicines for humanitarian 
purposes to a nongovernmental organization in Cuba.
    (4) Telecommunications commodities may be authorized on a case by 
case basis, provided the commodities are part of an FCC-approved 
project and are necessary to provide efficient and adequate 
telecommunications services between the United States and Cuba.
    (5) Exports from third countries to Cuba of nonstrategic foreign-
made products that contain an insubstantial proportion of U.S.-origin 
materials, parts, or components will generally be considered favorably 
on a case-by-case basis, provided all of the following conditions are 
satisfied:
    (i) The local law requires, or policy in the third country favors, 
trade with Cuba;
    (ii) The U.S.-origin content does not exceed 20 percent of the 
value of the product to be exported from the third country. Requests 
where the U.S.-origin parts, components, or materials represent more 
than 20 percent by value of the foreign-made product will generally be 
denied. See Supplement No. 3 to part 732 of this subchapter for 
instructions on how to calculate value.
    (iii) You are not a U.S.-owned or -controlled entity in a third 
country as defined by the OFAC or you are a U.S.-owned or controlled 
entity in a third country and one or more of the following situations 
applies:
    (A) You have a contract for the proposed export that was entered 
into prior to October 23, 1992.
    (B) Your transaction involves the export of foreign-produced 
medicine, or medical supplies, instruments, or equipment incorporating 
U.S.-origin parts, components or materials, in which case the 
application will be reviewed according to the provisions of paragraph 
(b)(3) of this section.
    (C) Your transaction is for the export of foreign-produced 
telecommunications commodities incorporating U.S.-origin parts, 
components and materials, in which case the application will be 
reviewed under the licensing policy set forth in paragraph (b)(4) of 
this section.
    (D) Your transaction is for the export of donated food to 
individuals or non-governmental organizations in Cuba.
    (c) Related controls. OFAC maintains controls on the activities of 
persons subject to U.S. jurisdiction, wherever located, involving 
transactions with Cuba or any specially designated Cuban national.


Sec. 746.3  Iraq.

    (a) License requirements. For foreign policy reasons, you will need 
a license to export or reexport all items subject to the EAR (see Part 
732 of this subchapter) to Iraq, except as noted in this section. OFAC 
administers an embargo against Iraq under the authority of the 
International Emergency Economic Powers Act of 1977 and in conformance 
with United Nations Security Council Resolutions. The applicable OFAC 
regulations, the Iraqi Sanctions Regulations, are found at 31 CFR part 
575. You should consult with OFAC for authorization to export or 
reexport items subject to U.S. jurisdiction to Iraq, or to any entity 
owned or controlled by, or specially designated as acting for or on 
behalf of, the Government of Iraq. An authorization from OFAC 
constitutes authorization under the EAR, and no license from BXA is 
necessary. Except as noted in Sec. 746.3(a)(1) of this part, you may 
not use any BXA License Exception or other BXA authorization to export 
or reexport to Iraq.
    (1) License Exceptions. You may export or reexport without a 
license if your transaction meets all the applicable terms and 
conditions of one of the following License Exceptions.
    (i) Baggage (BAG) (See Sec. 740.12 of this subchapter).
    (ii) Governments (GOV) (See Sec. 740.15 of this subchapter).
    (iii) Parts (PTS) for one-for-one replacement in certain legally 
exported goods (See Sec. 740.10 of this subchapter).
    (2) Exports for the official use of the United Nations, its 
personnel or agencies (excluding its relief or developmental agencies). 
You must consult with OFAC to determine what transactions are eligible.
    (b) Licensing policy. Under Executive Orders 12722 of August 2, 
1990 and 12724 of August 9, 1990, and consistent with United Nations 
resolutions, exports and reexports requiring a license are subject to a 
general policy of denial. You are advised to consult with OFAC 
concerning export and reexport authorization.
    (c) Related controls. OFAC maintains controls on the activities of 
U.S. persons, wherever located, involving transactions with Iraq or any 
specially designated Iraqi national.


Sec. 746.4  Libya.

    (a) Introduction. The Department of Commerce maintains 
comprehensive controls on exports and reexports to Libya. The 
Department of the Treasury, Office of Foreign Assets Control (OFAC) 
maintains comprehensive controls on exports and transshipments to Libya 
under the Libyan Sanctions Regulations (31 CFR part 550). To avoid 
duplicate licensing procedures, OFAC and BXA have allocated licensing 
responsibility as follows: OFAC licenses direct exports and 
transshipments to Libya; BXA licenses reexports, exports of foreign-
manufactured items containing U.S.-origin parts, components or 
materials, and exports of foreign produced direct product of U.S. 
technology or software. Issuance of an OFAC license also constitutes 
authorization under the EAR, and no license from BXA is necessary. 
Exports and reexports subject to the EAR that are not subject to the 
Libyan Sanctions Regulations continue to require authorization from 
BXA.
    (b) Definitions.--(1) Transshipment. For purposes of this section, 
transshipment means exports from the United States to third countries 
if the exporter knows, or has reason to know, the items are intended 
for reshipment to Libya (including passage through, or storage in, 
intermediate destinations) without coming to rest in a third country. 
The term ``transshipment'' covers goods intended specifically for 
substantial transformation or for incorporation in a third country into 
products for use in Libya in the petroleum or petrochemical industry. 
The term ``transshipment'' also covers technology intended specifically 
for use in a third country in the manufacture of, or incorporation 
into, products for use in Libya in the petroleum or petrochemical 
industry. See 31 CFR 550.409.
    (2) Reexport. For purposes of this section, reexport means the 
export of an item from a third country to Libya when Libya is not the 
intended ultimate destination at the time of export from the United 
States. Exports of foreign-manufactured items incorporating U.S.-origin 
parts, component or materials, and exports of foreign-manufactured 
items based on U.S. technology which are not subject to OFAC license 
requirements as ``transshipments'' may be subject to BXA license 
requirements. See part 732 of this subchapter.
    (c) License requirements. You will need a license to export and 
reexport all items subject to the EAR (see part 732 of this subchapter) 
to Libya, except donations of items intended to relieve human 
suffering, such as food, clothing, medicine and medical supplies 
intended strictly for medical purposes, or as follows.
    (1) Exports and transshipments. You will need a license from OFAC 
for all direct exports and transshipments to Libya except the 
following:
    (i) Exports eligible for the following BXA License Exceptions: (A) 
Baggage [[Page 25337]] (BAG) (see Sec. 740.12 of this subchapter). (B) 
Governments (GOV) (see Sec. 740.15 of this subchapter). (C) Gift 
parcels (GFT) (see Sec. 740.16 of this subchapter).
    (ii) As noted in paragraph (a) of this section, an authorization 
from OFAC constitutes authorization under the Export Administration 
Regulations. Except as noted in Sec. 746.4(b)(1) of this section, you 
may not use any BXA License Exception or other BXA authorization to 
export or transship to Libya.
    (2) Reexports. You will need a license from BXA to reexport any 
U.S.-origin item from a third country to Libya, any foreign-
manufactured item containing U.S.-origin parts, components or 
materials, as defined in Sec. 734.2(b)(2) of this subchapter, or any 
national security-controlled foreign-produced direct product of U.S. 
technology or software, as defined in Sec. 734.2(b)(3) of this 
subchapter, exported from the U.S. after March 12, 1982. Exceptions to 
the controls maintained by BXA, insofar as reexports are concerned, 
include the following:
    (i) Temporary Exports (TMP) reexports by the news media (see 
Sec. 740.8(b)(8) of this subchapter).
    (ii) Operating Technology and Software (OTS) for legally exported 
commodities (see Sec. 740.17 of this subchapter).
    (iii) Sales Technology (STS) (see Sec. 740.18 of this subchapter).
    (iv) Software Updates (SUD) for legally exported software (see 
Sec. 740.19 of this subchapter).
    (v) Parts (PTS) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.10 of this subchapter).
    (vi) Baggage (BAG) (Sec. 740.12 of this subchapter).
    (vii) Aircraft and Vessels (A&V) for vessels only (see 
Sec. 740.13(c)(1) of this subchapter).
    (viii) Governments (GOV) (see Sec. 740.15 of this subchapter).
    (ix) Gift parcels (GFT) (see Sec. 740.16 of this subchapter).
    (3) Applications submitted to BXA for reexport authorization must 
provide specific answers to the following questions:
    (i) How was the product received at its current location, and under 
what type of authorization;
    (ii) On what date was it received; and
    (iii) How are inventories maintained at the current site?
    (d) Licensing policy. (1) You should consult with OFAC regarding 
licensing policy for direct exports and transshipments to Libya.
    (2) The licensing policy for BXA controls is as follows. Licenses 
will generally be denied for:
    (i) Items controlled for national security purposes and related 
technology and software, including controlled foreign produced products 
of U.S. technology and software exported from the United States after 
March 12, 1982; and
    (ii) Oil and gas equipment and technology and software, if 
determined by BXA not to be readily available from sources outside the 
United States; and
    (iii) Goods and technology and software destined for the 
petrochemical processing complex at Ras Lanuf, where such items would 
contribute directly to the development or construction of that complex. 
Items destined for the township at Ras Lanuf, or for the public 
utilities or harbor facilities associated with that township, generally 
will not be regarded as making such a contribution where their 
functions will be primarily related to the township, utilities or 
harbor.
    (iv) The following items subject to international sanctions:
    (A) Aircraft or aircraft components to Libya or the provision of 
engineering and maintenance servicing of Libyan aircraft or aircraft 
components;
    (B) Arms and related material of all types, including the sale or 
transfer of weapons and ammunition, military vehicles and equipment, 
paramilitary police equipment, spare parts for the aforementioned, and 
equipment or supplies for the manufacture or maintenance of the 
aforementioned.
    (C) Materials destined for the construction, improvement or 
maintenance of Libyan civilian or military airfields and associated 
facilities and equipment or any engineering or other services or 
components destined for the maintenance of any Libyan civil or military 
airfields or associated facilities and equipment, except emergency 
equipment and equipment and services directly related to civilian air 
traffic control;
    (D) Items listed in paragraphs (d)(1) through (5) and equipment and 
supplies for the manufacture or maintenance of such items:
    (1) Pumps of medium or large capacity (equal to or larger than 3500 
cubic meters per hour) and drivers (gas turbines and electric motors) 
designed for use in the transportation of crude oil and natural gas.
    (2) Equipment designed for use in crude oil export terminals, as 
follows:
    (i) Loading buoys or single point moorings;
    (ii) Flexible hoses for connection between underwater manifolds 
(plem) and single point mooring and floating loading hoses of large 
sizes (from 12-16 inches); or
    (iii) Anchor chains.
    (3) Equipment not specially designed for use in crude oil export 
terminals, but which because of its large capacity can be used for this 
purpose, as follows:
    (i) Loading pumps of large capacity (4000 m<SUP>3/h) and small head 
(10 bars);
    (ii) Boosting pumps within the same range of flow rates;
    (iii) Inline pipe line inspection tools and cleaning devices (i.e., 
pigging tools) (16 inches and above); or
    (iv) Metering equipment of large capacity (1000 m\3\/h and above).
    (4) Refinery equipment, as follows:
    (i) Boilers meeting American Society of Mechanical Engineers 1 
standards;
    (ii) Furnaces meeting American Society of Mechanical Engineers 8 
standards;
    (iii) Fractionation columns meeting American Society of Mechanical 
Engineers 8 standards;
    (iv) Pumps meeting American Petroleum Institute 610 standards;
    (v) Catalytic reactors meeting American Society of Mechanical 
Engineers 8 standards; or
    (vi) Prepared catalysts, including catalysts containing platinum 
and catalysts containing molybdenum.
    (5) Spare parts for any of the above.
    (3) Notwithstanding the presumptions of denial in paragraphs 
(d)(2)(i) through (iii), licenses will generally be issued when the 
transaction involves items not included in paragraph (d)(2)(iv).
    (i) The export or reexport of commodities or technology and 
software under a contract in effect prior to March 12, 1982, where 
failure to obtain a license would not excuse performance under the 
contract;
    (ii) Reexport of items not controlled for national security 
purposes that had been exported from the United States prior to March 
12, 1982 or exports of foreign products incorporating such items as 
components; or
    (iii) Use of U.S.-origin parts, components, or materials in 
foreign-manufactured products destined for Libya, where the U.S. 
content is 20 percent or less by value,
    (4) Notwithstanding the presumption of denial in paragraph 
(d)(2)(iv), applications for reexports under a contract pre-dating 
December 3, 1993, will be reviewed under the licensing policy in effect 
prior to that date.
    (5) Licenses will generally be considered favorably on a case-by-
case basis when the transaction involves the following items, provided 
such items are not included in paragraph (d)(2)(iv):
    (i) Reexports of items subject to national security controls that 
were [[Page 25338]] exported prior to March 12, 1982 and exports of 
foreign products incorporating such U.S.-origin components, where the 
particular authorization would not be contrary to specific foreign 
policy objectives of the United States; or
    (ii) Items destined for use in the development or construction of 
the petrochemical processing complex at Ras Lanuf, where the 
transaction could be approved but for the general policy of denial set 
out in paragraph (d)(4)(i)(C), and where either:
    (A) The transaction involves a contract in effect before December 
20, 1983 that requires export or reexport of the items in question; or
    (B) The items had been exported from the U.S. before that date.
    (iii) Other unusual situations such as transactions involving firms 
with contractual commitments in effect before March 12, 1982.
    (6) Licenses will generally be considered favorably on a case-by-
case basis for the export of reasonable quantities for civil use of 
off-highway wheel tractors of carriage capacity of 9t (10 tons) or 
more, as defined in ECCN 9A92, provided such tractors are not for uses 
covered by United Nations Security Council Resolution 883 of November 
11, 1993.
    (7) All other exports and reexports not covered by United Nations 
resolutions will generally be approved, subject to any other licensing 
policies applicable to a particular transaction.
    (e) Related controls. OFAC administers broad economic sanctions on 
Libya, and restricts participation by U.S. persons in transactions with 
Libya or specially designated Libyan nationals. The applicable OFAC 
regulations, the Libyan Sanctions Regulations, are found at 31 CFR part 
550.


 Sec. 746.5  North Korea.

    (a) License requirements. You will need a license to export or 
reexport items subject to the EAR (see part 732 of this subchapter) to 
North Korea, except as follows:
    (1) License Exceptions. You may export without a license if your 
transaction meets all the applicable terms and conditions of any of the 
following License Exceptions. To determine scope and eligibility 
requirements, you will need to turn to the sections or specific 
paragraphs of part 740 of this subchapter (License Exceptions).
    (i) Temporary Exports (TMP) by the news media (see Sec. 740.8(b)(8) 
of this subchapter).
    (ii) Operating Technology and Software (OTS) for legally exported 
commodities (see Sec. 740.17 of this subchapter).
    (iii) Sales Technology (STS) (see Sec. 740.18 of this subchapter).
    (iv) Software Updates (SUD) for legally exported software (see 
Sec. 740.19 of this subchapter).
    (v) Parts (PTS) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.10 of this subchapter).
    (vi) Baggage (BAG) (Sec. 740.12 of this subchapter).
    (vii) Aircraft and Vessels (A&V) for fishing vessels under 
governing international fishery agreements and foreign-registered 
aircraft on temporary sojourn in the U.S.<SUP>1 (see Sec. 740.13(a) and 
(c)(1) of this subchapter).

    \1\Export of U.S. aircraft on temporary sojourn is prohibited by 
the Department of Transportation, 44 CFR Ch. IV, Part 403 ``Shipping 
restrictions: North Korea (T-2).''
---------------------------------------------------------------------------

    (viii) Governments (GOV) (see Sec. 740.15 of this subchapter).
    (ix) Gift parcels (GFT) (see Sec. 740.16 of this subchapter).
    (2) [Reserved.]
    (b) Licensing policy. Items requiring a license are subject to a 
general policy of denial. Exceptions to the policy of denial are as 
follows:
    (1) Humanitarian License. BXA may issue licenses for exports of 
donated human-needs items to organizations eligible for the 
Humanitarian License. See Sec. 746.17 of this part for this license and 
Supplement No. 1 to part 746 for a list of human-needs items that may 
be approved.
    (2) BXA will review on a case-by-case basis applications for export 
of donated human-needs items listed in Supplement No. 1 to Part 746 
that do not qualify for the Humanitarian License. Such applications 
include single transactions involving exports to meet emergency needs.
    (3) BXA will review on a case-by-case basis applications for 
commercial sales of human-needs items. Such applications must be for 
items listed in Supplement No. 1 to part 746, but are not limited 
solely to small scale projects at the local level.
    (c) Related controls. OFAC maintains controls on the activities of 
persons subject to U.S. jurisdiction, wherever located, involving 
transactions with North Korea or any specially designated North Korean 
national.


Sec. 746.6  The Federal Republic of Yugoslavia (Serbia and Montenegro), 
Bosnia-Herzegovina, Croatia.

    (a) Federal Republic of Yugoslavia (Serbia & Montenegro). BXA 
maintains the controls reflected on the Country Chart in Supplement 1 
to part 738 of this subchapter on the Federal Republic of Yugoslavia. 
In addition, OFAC administers an embargo on exports and reexports to 
the Federal Republic of Yugoslavia (Serbia and Montenegro) (FRY (S & 
M)). OFAC administers this embargo under Executive Orders 12808 of May 
30, 1992, 12810 of June 5, 1992, 12831 of January 15, 1993, 12846 of 
April 25, 1993, and 12934 of October 25, 1994, and consistent with 
United Nations Security Council Resolutions 757 of May 30, 1992, 787 of 
November 16, 1992, 820 of April 17, 1993, and 942 of September 23, 
1994. Under this embargo, no goods or technology subject to U.S. 
jurisdiction may be exported, directly or indirectly, to the FRY (S & 
M), or to any entity operated from the FRY (S & M), or owned or 
controlled by, or specially designated as acting for or on behalf of 
the Government of the FRY (S & M). The applicable OFAC regulations, the 
Federal Republic of Yugoslavia (Serbia and Montenegro) Sanctions 
Regulations, are found at 31 CFR part 585. Exporters should apply to 
OFAC for authorization to export or reexport items subject to the EAR 
to the FRY (S & M). An authorization from OFAC constitutes 
authorization under the EAR, and no BXA license is necessary.
    (b) Bosnia-Herzegovina. BXA maintains the controls reflected on the 
Country Chart in Supplement 1 to part 738 of this subchapter on Bosnia-
Herzegovina. In addition, OFAC prohibits any dealing by a U.S. person 
relating to the export to, or transshipment through, those areas of the 
Republic of Bosnia-Herzegovina under the control of the Bosnian Serb 
forces, or activity of any kind that promotes or is intended to promote 
such dealing. OFAC maintains this embargo under Executive Orders 12846 
of April 25, 1993 and 12934 of October 25, 1994, and consistent with 
United Nations Security Council Resolutions 820 of April 17, 1993 and 
942 of September 23, 1994. The applicable OFAC regulations, the Federal 
Republic of Yugoslavia (Serbia and Montenegro) Sanctions Regulations, 
are found at 31 CFR part 585. U.S. persons should apply to OFAC for 
authorization to engage in trade-related transactions involving those 
areas of the Republic of Bosnia-Herzegovina under the control of the 
Bosnian Serb forces. An authorization from OFAC constitutes 
authorization under the EAR, and no BXA license is necessary. You will 
need a license from BXA for items controlled on the CCL to Bosnia-
Herzegovina when the export or [[Page 25339]] reexport is destined to 
areas in the Republic of Bosnia-Herzegovina not controlled by the 
Bosnian Serb forces. You may also need a license from BXA to reexport 
U.S.-origin items from third countries to areas of the Republic of 
Bosnia-Herzegovina under the control of the Bosnian Serb forces.
    (c) Croatia. BXA maintains the controls reflected on the Country 
Chart in Supplement 1 to part 738 of this subchapter on Croatia. In 
addition, OFAC prohibits any dealing by a U.S. person relating to the 
export to, or transshipment through, the United Nations Protected Areas 
in the Republic of Croatia. OFAC maintains this embargo under Executive 
Order 12846 of April 25, 1993, and consistent with United Nations 
Security Council Resolution 820 of April 17, 1993. The applicable OFAC 
regulations, the Federal Republic of Yugoslavia (Serbia and Montenegro) 
Sanctions Regulations, are found at 31 CFR part 585. U.S. persons 
should apply to OFAC for authorization to engage in trade-related 
transactions involving to the United Nations Protected Areas in the 
Republic of Croatia. An authorization from OFAC constitutes 
authorization under the EAR, and no BXA license is necessary. You will 
need a license from BXA for items controlled on the CCL to Croatia when 
the export or reexport is destined to areas other than the United 
Nations Protected Areas in the Republic of Croatia. You may also need a 
license from BXA to reexport U.S.-origin items from third countries to 
the United Nations Protected Areas in the Republic of Croatia.


Sec. 746.7  Rwanda.

    (a) Introduction. In addition to the controls on Rwanda reflected 
on the Country Chart in Supplement 1 to part 738 of this subchapter, 
there are special controls on items that fall within the scope of a 
United Nations Security Council arms embargo.
    (b) License requirements. (1) Under Executive Order 12918 of May 
26, 1994, and in conformity with United Nations Security Council (UNSC) 
Resolution 918 of May 17, 1994, an embargo applies to the sale or 
supply to Rwanda of arms and related materiel of all types and 
regardless of origin, including weapons and ammunition, military 
vehicles and equipment, paramilitary police equipment, and spare parts 
for such items. You will therefore need a license for the sale, supply 
or export of embargoed items as listed in paragraph (b)(1)(i) and (ii) 
of this section from the territory of the United States by any person. 
You will also need a license for the export, reexport, sale or supply 
to Rwanda of such items by any United States person in any foreign 
country or other location. (Reexport controls imposed by this embargo 
apply only to reexports by U.S. persons.) You will also need a license 
for the use of any U.S.-registered aircraft or vessel to supply or 
transport to Rwanda any such items. These requirements apply to 
embargoed items, regardless of origin.
    (i) Crime Control and Detection Equipment as identified on the CCL 
under CC Columns No. 1, 2 or 3 in the Country Chart column of the 
``License Requirements'' section of the applicable ECCN.
    (ii) Items described by any ECCN ending in ``18,'' and items 
described by ECCNs 1A88F, 2B85F, 5A80D, 6A02A.a.1,a.2,a.3 and c, 
6A03A.b.3 and b.4, 6D21B, 6E01A, 6E02A, 9A22B, 9A91F.a, 0A84C, 0A86F, 
and 0A88F.
    (2) This embargo was effective 11:59 p.m. EDT on May 26, 1994.
    (3) Definitions. For the purposes of this embargo, the term:
    (i) ``Person'' means a natural person as well as a corporation, 
business association, partnership, society, trust, or any other entity, 
organization or group, including governmental entities; and
    (ii) ``United States person'' means any citizen or national of the 
United States, any lawful permanent resident of the United States, or 
any corporation, business association, partnership, society, trust, or 
any other entity, organization or group, including governmental 
entities, organized under the laws of the United States (including 
foreign branches).
    (c) Licensing policy. Applications for export or reexport of all 
military-related equipment listed in paragraphs (b)(1)(i) and (ii) of 
this section are subject to a general policy of denial. Consistent with 
United Nations Security Council Resolution 918 and the United Nations 
Participation Act, this embargo is effective notwithstanding the 
existence of any rights or obligations conferred or imposed by any 
international agreement or any contract entered into or any license or 
permit granted prior to that date, except to the extent provided in 
regulations orders, directives or licenses that may be issued in the 
future under Executive Order 12918 or these regulations.
    (d) Related controls. The Department of State, Office of Defense 
Trade Controls, maintains controls on arms and military equipment under 
the International Traffic in Arms Regulations (22 CFR parts 120 through 
130).


Sec. 746.8-Sec. 746.16  [Reserved]


Sec. 746.17  Humanitarian License.

    A Humanitarian License is established that authorizes exports to 
certain embargoed destinations of donated goods to meet basic human-
needs by a group or organization that has experience in maintaining a 
verifiable system of distribution that ensures delivery to the intended 
beneficiaries.
    (a) Basic human needs. Under this license, basic human needs are 
defined as those requirements essential to individual well-being: 
health, food, clothing, shelter, and education. These needs are 
considered to extend beyond those of an emergency nature and those that 
meet direct needs for mere subsistence. This license permits the export 
of goods that are suitable for small-scale local improvement projects; 
for example: seeds, tools, fertilizers, small-scale irrigation pumps, 
and agricultural materials and machinery suited to small-scale farming 
operations. It encompasses the export of goods of the kind normally 
donated by charitable organizations that address basic human needs 
directly and at the local level, where specific improvement projects 
can be closely monitored and adjusted as needed to ensure that the 
donated items are being delivered to the intended beneficiaries. The 
Humanitarian License does not, however, permit exports for large-scale 
projects of the kind associated with comprehensive economic growth, 
such as dams and hydroelectric plants.
    (b) Eligible donors. Eligible donors are U.S. charitable 
organizations that have an established record of involvement in 
donative programs and experience in maintaining and verifying a system 
of distribution to ensure delivery of commodities to the intended 
beneficiaries.
    (c) Donations. To qualify for export under this license, the items 
must be provided free of charge to the beneficiary. This requirement 
reflects a distinction between freely-donated goods of a people-to-
people nature of the type exported by U.S. private and voluntary 
charitable organizations and those goods of a commercial nature, which 
are excluded from this license. The payment by the beneficiary, 
however, of normal handling charges or fees levied by the importing 
country (e.g., import duties, taxes, etc.) is not considered to be a 
cost to the beneficiary for purposes of this section.
    (d) Ineligible items. Among those items not eligible under this 
license are those controlled for national security, chemical, 
biological and nuclear non- [[Page 25340]] proliferation, missile 
technology or crime control reasons in the ``Reason for Control'' 
paragraph on the Commerce Control List (CCL) (Supplement No. 1 to part 
774 of this subchapter) and communications intercepting devices (ECCN 
5A80).
    (e) Eligible items. Supplement No. 1 to this part 746 lists the 
kinds of items that have been determined to meet basic human needs. The 
exporter, however, is required to abide by the guidelines in paragraph 
(a) of this section to ensure that a given item to be exported is 
encompassed by this license. For example, even though ``generators'' 
are included in the Supplement, only small generators suitable and 
necessary to administer and operate a donative program are authorized 
for export by this license. In like manner, ``laboratory supplies and 
equipment'' covers items intended for use in local medical laboratories 
such as refrigerators, sterilization equipment and microscopes. If a 
license holder is in doubt whether an item is included within the scope 
of one of the entries listed in the Supplement, or seeks authorization 
for items not included in the Supplement, a letter of inquiry should be 
submitted to the Bureau of Export Administration, Office of Exporter 
Services, Rm. 2627, U.S. Department of Commerce, Washington, DC 20230. 
The request should describe the type of goods intended for export and 
how it is intended to meet basic human needs. The Office of Exporter 
Services will notify the exporter whether the item is authorized for 
export by this license and any special conditions that may apply to the 
export.
    (f) Distribution. To qualify for a Humanitarian License, the donor 
must demonstrate a means of ensuring that the donations exported are in 
fact used to meet the basic human needs of the intended beneficiaries. 
This requires a monitoring system that would alert the donor if goods 
are being diverted. See paragraph (g)(5) of this section for ways by 
which this requirement may be satisfied.
    (g) Application procedure. To apply for a Humanitarian License, the 
applicant shall prepare a Narrative Statement, in duplicate, explaining 
the nature and function of the donative program. This Narrative 
Statement should be submitted to the Bureau of Export Administration, 
Office of Exporter Services, Room 2627, Department of Commerce, 
Washington, DC 20230. The Narrative Statement must include, as a 
minimum, the following information:
    (1) The applicant organization's identity and past experience as an 
exporter of goods to meet basic human needs;
    (2) A specific list of past and current countries to which the 
donative programs have been and are being directed, as well as any 
countries to which such programs are now planned, with particular 
reference to donative programs in embargoed destinations;
    (3) A description of the types of projects and commodities involved 
in the donative programs;
    (4) A description of the specific class(es) of beneficiaries of 
particular donated goods intended to be exported under this license.
    (5) A description of the arrangements to ensure proper distribution 
of the donated goods. These arrangements may consist of any one or more 
of the following:
    (i) A permanent staff maintained in the recipient country to 
monitor the receipt and distribution of the donations to the intended 
beneficiaries;
    (ii) Periodic spot-checks in the recipient country by members of 
the exporter's staff;
    (iii) An agreement to utilize the services of a charitable 
organization that has a monitoring system in place; and
    (6) Information concerning the source of funding for the donative 
programs and the projected annual value of exports under the license. 
When a narrative statement is approved, the Office of Exporter Services 
will issue a letter authorizing export of eligible donations during the 
validity period, subject to the provisions of the Export Administration 
Regulations and to the terms and conditions contained in the letter. 
Attached to this letter will be a validated copy of the narrative 
statement with a license number and an expiration date. This letter 
together with the validated copy of the Narrative Statement constitutes 
the ``Humanitarian License.'' The license number must be displayed on 
the Shipper's Export Declaration (Commerce Form 7525-V.)
    (h) Duration of license. (1) A Humanitarian License granted under 
this section will be valid for two years from the last day of the month 
in which it is issued. The license may be extended for two-year periods 
thereafter by submitting a certification to the Office of Exporter 
Services. This certification must state the following:

    For the purpose of requesting a two year extension of 
Humanitarian License No.__________, I (we) certify that all material 
facts concerning the license outlined in the Narrative Statement 
submitted to the Office of Exporter Services remain the same and 
that I continue to comply with the terms and conditions of said 
license and with the Export Administration Regulations (EAR). I am 
authorized to make this statement on behalf of our organization.

----------------------------------------------------------------------
(Name and Title)
----------------------------------------------------------------------
(Signature and Date)

    (2) If any material facts concerning the license have changed from 
those described in the Narrative Statement, the exporter must submit an 
explanation of those changes at the time that renewal of the license is 
sought. This request for an extension of the Humanitarian License 
should be submitted 90 days prior to the license's expiration date. 
When this extension request is approved, the Office of Exporter 
Services will issue a validated letter with a new license number and 
expiration date.
    (i) Revocation of license. In addition to any enforcement action 
under part 764 of this subchapter, the license may be suspended or 
revoked if any of the following occurs:
    (1) The exporter discontinues use of the license for a period of 
more than one year;
    (2) The exporter has failed to comply with the guidelines of the 
license, including the export of items that do not qualify as donations 
intended to meet basic human needs or the acceptance of any form of 
payment for the items donated;
    (3) The donations are diverted to an unauthorized party;
    (4) Any provision of the Export Administration Act or any 
regulation, order, or license issued pursuant thereto has been 
violated.
    (j) Recordkeeping requirements. In addition to the renewal request 
discussed in paragraph (h) of this section, any exporter granted a 
Humanitarian License must maintain records of all shipments made under 
that license, the values of said shipments, the countries and 
beneficiaries to which the donations are sent, the Department of 
Commerce letter and Narrative Statement, and any party charged with 
distributing the donations to the beneficiaries. These records must be 
available for review upon request by the Office of Export Enforcement.

Supplement 1 to Part 746--Kinds of Items That May Be Donated To Meet 
Basic Human Needs Under the Humanitarian License

    The following is a list of the kinds of items that have been 
identified as meeting basic human needs. The list is not definitive but 
will be amended on an ongoing basis to reflect additional items, as 
they are identified, that meet [[Page 25341]] these needs. The list is 
divided into categories that parallel the five basic human needs: 
health, food, clothing, shelter, and education. A degree of overlap 
exists, however, since an item listed as meeting one need may serve as 
well to meet additional needs. A sixth category of items is added to 
cover the non-commercial export of basic support equipment and supplies 
necessary to operate and administer the donative programs. The list is 
limited by the guidelines outlined in Sec. 746.17(a) of this part, 
which confine the scope of the list to those items appropriate in 
addressing basic human needs through small-scale projects at the local 
level. Each item itself must be able to be described as ``basic'' and 
``small-scale'' if it is to be eligible for export under this license. 
If the exporter is unsure whether a prospective donation falls within 
these guidelines, the procedure outlined in Sec. 746.17(e) of this part 
should be followed. Where applicable, replacement and spare parts for 
items that qualify for export under this Supplement may also be 
exported. Specific goods that may not be exported under a Humanitarian 
License are described in Sec. 746.17(d) of this part.

    Note: Motorized vehicles, watercraft and aircraft are not 
included in this Supplement. Requests to export such items to meet 
basic human needs may be made under the procedure described in 
Sec. 746.17(e) of this part.

    (a) Health

Equipment for the Handicapped
Hospital Supplies and Equipment
Laboratory Supplies and Equipment
Medical Supplies and Devices
Medicine-Processing Equipment
Medicines
Vitamins
Water Resources Equipment
Food
Agricultural Materials and Machinery Suited to Small-Scale Farming 
Operations
Agricultural Research and Testing Equipment
Fertilizers
Fishing Equipment and Supplies Suited to Small-Scale Fishing 
Operations

    (b) Food

Insecticides
Pesticides
Seeds
Small-Scale Irrigation Equipment
Veterinary Medicines and Supplies

    (c) Clothes and Household Goods

Bedding
Clothes
Cooking Utensils
Fabric
Personal Hygiene Items
Soap-Making Equipment
Weaving and Sewing Equipment

    (d) Shelter

Building Materials
Hand Tools

    (e) Education

Books
Individual School Supplies
School Furniture
Special Education Supplies and Equipment for the Handicapped

    (f) Basic Support Equipment and Supplies Necessary to Operate 
and Administer the Donative Program

Audio-Visual Aids for Training
Generators
Office Supplies and Equipment

Supplement 2 to Part 746--United Nations Embargoes Administered by OFAC

    (a) Angola. BXA maintains controls on Angola as reflected on the 
Country Chart in Supplement 1 to part 738 of this subchapter. (See 
also section 746.7 of this part.) In addition, OFAC administers 
sanctions against the National Union for the Total Independence of 
Angola (UNITA). Under Executive Order 12865 of September 26, 1993, 
and consistent with United Nations Security Council Resolution 864 
of September 15, 1993, OFAC administers an embargo on the sale or 
supply of arms and related materiel of all types, including weapons 
and ammunition, military vehicles and equipment and spare parts, and 
petroleum and petroleum products to:
    (1) UNITA; or
    (2) The territory of Angola, other than through points of entry 
designated by the Secretary of the Treasury, in the following 
schedule:
    (i) Airports:
    (A) Luanda; or
    (B) Katumbela, Benguela Province.
    (ii) Ports:
    (A) Luanda;
    (B) Lobito, Benguela Province; or
    (C) Namibe, Namibe Province.
    (iii) Entry Points:
    (A) Malongo, Cabinda.
    (B) Reserved.
    (b) Exporters should apply to OFAC for authorization to export 
embargoed items to UNITA or to points of entry not designated by the 
Secretary of the Treasury. Exports of embargoed items that are also 
controlled on the CCL to end-users other than UNITA and to points of 
entry designated by the Secretary of the Treasury continue to 
require a license from BXA. In addition, all other items controlled 
on the CCL to Angola continue to require a license from BXA.

Supplement 3 to Part 746--United Nations Arms Embargoes Administered by 
the State Department

    (a) Former Socialist Federal Republic of Yugoslavia (Bosnia-
Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, 
Montenegro, Serbia, and Slovenia). The Department of State 
administers an embargo on all weapons and military equipment, 
consistent with United Nations Security Council Resolution 713 of 
September 25, 1991, to the countries of the former Socialist Federal 
Republic of Yugoslavia (Bosnia-Herzegovina, Croatia, the Former 
Yugoslav Republic of Macedonia, Montenegro, Serbia, and Slovenia). 
Exporters are advised to consult with the Department of State, 
Office of Defense Trade Controls (22 CFR parts 120 through 130), 
regarding exports of weapons and military equipment to these 
destinations.
    (b) Liberia. The Department of State administers an embargo on 
all weapons and military equipment to Liberia, consistent with 
United Nations Security Council Resolution 788 of November 19, 1992. 
Exporters are advised to consult with the Department of State, 
Office of Defense Trade Controls (22 CFR parts 120 through 130), 
regarding exports of weapons and military equipment.
    (c) Somalia. The Department of State administers an embargo on 
all weapons and military equipment to Somalia, consistent with 
United Nations Security Council Resolution 733 of February 23, 1992. 
Exporters are advised to consult with the Department of State, 
Office of Defense Trade Controls (22 CFR parts 120 through 130), 
regarding exports of weapons and military equipment.

PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND 
DOCUMENTATION

Sec.
748.1  General provisions.
748.2  Where to obtain the necessary forms.
748.3  Classification and Advisory Opinion requests.
748.4  Parties to the transaction.
748.5  Provisions related to applying for a license.
748.6  Disclosure and substantiation of facts on license 
applications.
748.7  General instructions for license applications.
748.8  Additional license application requirements.
748.9  Support documentation for license applications.
748.10 Import and End-User Certificates.
748.11 Statement by Ultimate Consignee and Purchaser.
748.12  Special provisions.
748.13  Delivery Verification.
748.14  Mailing address for applications and documentation.

Supplement No. 1--BXA-748P, BXA-748P-A; Item Appendix, and BXA-748P-B; 
End-User Appendix Multipurpose Application Instructions

Supplement No. 2--BXA-711, Statement by Ultimate Consignee and 
Purchaser Instructions

Supplement No. 3--Authorities Administering Import Certificate/Delivery 
Verification (IC/DV) and End Use Certificate Systems in Foreign 
Countries

Supplement No. 4--U.S. Import Certificate and Delivery Verification 
Procedure

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924. [[Page 25342]] 


Sec. 748.1  General provisions.

    (a) Scope.  (1) The provisions of this part apply to all 
applications whether submitted in writing or electronically for 
transactions subject to the Export Administration Regulations (EAR). 
All terms, conditions, provisions, and instructions including the 
applicant's certification, contained in such form(s) are incorporated 
as part of the EAR. For the purposes of this part, the term 
``application'' refers to the Form BXA-748P.
    (2) BXA will give a formal licensing decision only through the 
review of a license application or specific classification or advisory 
opinion request submitted in writing to BXA. Such decisions are based 
upon the application or request and information submitted concerning 
all facts relevant to the transaction supported by all required 
documentation.
    (b) Reserved.


Sec. 748.2  Where to obtain the necessary forms.

    (a) You may obtain the forms required by the EAR from any U.S. 
Department of Commerce District Office; or in person or by telephone or 
facsimile from the following BXA offices:

Export Counseling Division, U.S. Department of Commerce, 14th Street 
and Pennsylvania Ave., N.W., Room H1099D, Washington, D.C. 20230. 
Telephone Number: (202) 482-4811; Facsimile Number: (202) 482-3617.
Western Regional Offices:
3300 Irvine Avenue, Ste. 345, Newport Beach, CA 92660. Telephone 
Number: (714) 660-0144; Facsimile Number: (714) 660-9347.
5201 Great America Pkwy., Ste. 226, Santa Clara, CA 95054. Telephone 
Number: (408) 748-7450; Facsimile Number: (408) 748-7470.

    (b) For the convenience of foreign consignees and other foreign 
parties, certain BXA forms may be obtained at U.S. Embassies and 
Consulates throughout the world. A Forms Supplement containing samples 
of the most commonly used export control forms is included as a 
supplement to the EAR.


Sec. 748.3  Classification and Advisory Opinion requests.

    (a) Introduction. You may ask BXA to classify your item and provide 
you with the correct Export Control Classification Number (ECCN) to the 
paragraph (or subparagraph if appropriate). BXA will advise you whether 
or not your item is subject to the EAR and, if applicable, the 
appropriate ECCN. This type of request is commonly referred to as a 
``Classification Request''. If requested, for a given end-use, end-
user, or destination, BXA will advise you whether a license is required 
to export a particular item(s), and whether or not a license is likely 
to be granted. This type of request is commonly referred to as an 
``Advisory Opinion''.
    (1) Classification and Advisory Opinion requests must be submitted 
using Form BXA-748P; Multipurpose Application. Please see the 
instructions contained in Supplement No. 1 to part 748 to complete the 
Blocks identified for each type of request. Both requests must be sent 
to BXA at one of the addresses listed in Sec. 748.14 of this part. Be 
certain that your request does not omit any essential information or is 
otherwise incomplete.
    (i) Each request involving particular items must be limited to 5 
items. Exceptions may be made on a case-by-case basis for several 
related items if the relationship between the items is satisfactorily 
substantiated in the request. All Classification and Advisory Opinion 
requests (that necessitate BXA verifying a classification) must be 
supported by any descriptive literature, brochures, precise technical 
specifications or papers that describe the items in sufficient 
technical detail to enable classification or verification by BXA.
    (ii) Your specific request should be stated in Block 24 on the 
application, whether you are requesting a Classification or Advisory 
Opinion. If your request does not fit in this Block, you may enter the 
words ``See Attached Request'' in Block 24, and attach your written 
request to the application.
    (b) Classification requests. If you are submitting a Classification 
request you must complete Blocks 1 through 5, 14, 22 and 25 on the 
application. If you are requesting BXA to classify an item for which 
precise specifications are identified in Sec. 748.8 of this part, these 
specifications must be addressed in, or attached to, your request.
    (c) Advisory Opinion requests. If you are submitting a written 
Advisory Opinion request, you must complete Blocks 1 through 5, 14 and 
25 on the application. In addition you may need to complete the 
following Blocks based on the nature of your request:
    (1) Blocks 16, 17, 18, or 19 when your request involves parties to 
a proposed transaction;
    (2) Block 21 when your request involves a specific end-use; or
    (3) Block 22 when your request involves a particular item.


Sec. 748.4  Parties to the transaction.

    (a) Definitions of parties in interest--(1) Applicant. (i) The 
``applicant'' is defined as the person who, as the principal party in 
interest in the transaction, has the power and responsibility for 
determining and controlling the exporting or reexporting of the items. 
BXA is primarily concerned with the identity of the applicant and the 
applicant's role in the transaction, and not the terms of sale.
    (ii) Ordinarily, a seller who delivers items in the United States 
to a foreign buyer, or to the latter's forwarder or other agent, would 
not be in a position to assume responsibility for the export and would 
not be a proper applicant. This would normally be the situation where 
sale is made f.o.b. factory, although such terms of sale may relate 
only to price and are not necessarily inconsistent with the assumption 
by the seller of full responsibility for effecting the export or 
reexport.
    (iii) If the seller intends to leave the responsibility for 
effecting an export or reexport in the hands of the foreign importer or 
the latter's forwarding or purchasing agent in the United States, the 
foreign importer should apply for the license in the foreign importer's 
own name if the foreign importer is subject to the jurisdiction of the 
United States at the time of export. Otherwise, the importer's 
forwarding or purchasing agent must appear as applicant and exporter. 
In this situation you, as the applicant, must disclose your role as 
agent and the name of your principal.
    (2) Order party. The order party is that person in the United 
States who conducted the direct negotiations or correspondence with the 
foreign purchaser or ultimate consignee and who, as a result of these 
negotiations, received the order from the foreign purchaser or ultimate 
consignee.
    (3) Purchaser. The purchaser is that person abroad who has entered 
into the transaction with the applicant to purchase an item for 
delivery to the ultimate consignee. A bank, freight forwarder, 
forwarding agent, or other intermediary is not the purchaser.
    (4) Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter or reexporter, the purchaser, or 
the ultimate consignee, for the purpose of effecting delivery of the 
export or reexport to the ultimate consignee.
    (5) Ultimate consignee. The ultimate consignee is the person 
located abroad who is the true party in interest in actually receiving 
the export for the designated end-use. A bank, freight forwarder, 
forwarding agent, or other party, when acting as an intermediary, 
[[Page 25343]] is not acceptable as the ultimate consignee.
    (b) Reserved.


Sec. 748.5  Provisions related to applying for a license.

    (a) Licensing action. License applications may be approved in whole 
or in part, denied in whole or in part, or returned without action. 
However, if you specifically request, the license application will be 
considered as a whole and either approved or denied in its entirety. 
You will be notified of the action taken on your license application.
    (b) Prohibited from applying for a license. No one convicted of a 
violation of one of the statutes specified in Sec. 11(h) of the Export 
Administration Act, as amended, at the discretion of the Secretary of 
Commerce, is eligible to apply for any license for a period up to 10 
years from the date of the conviction.
    (c) Disclosure of prior action on a shipment. If you have obtained 
a license without disclosure of the facts described in Sec. 748.6(a) of 
this part, where applicable, the license will be deemed to have been 
obtained without disclosure of all facts material to the granting of 
the license and the license so obtained will be deemed void.
    (1) Licenses for items subject to detention. If you submit a 
license application for items that you know or have reason to know have 
been detained by the Office of Export Enforcement or by the U.S. 
Customs Service, you must disclose this fact to BXA when you submit 
your license application.
    (2) Licenses for items previously exported. You may not submit a 
license application to BXA covering a shipment that is already laden 
aboard the exporting carrier, exported or reexported. If such export or 
reexport should not have been made without first securing a license 
authorizing the shipment, you must send a letter of explanation to the 
Office of Export Enforcement, U.S. Department of Commerce, 14th and 
Pennsylvania H4520, Washington, D.C., 20230. The letter must state why 
a license was not obtained and disclose all facts concerning the 
shipment that would normally have been disclosed on the license 
application. You will be informed of any action and furnished any 
instructions by the Office of Export Enforcement.
    (d) Combining items on license applications. Any items may be 
combined on a single application, however, if the items differ 
dramatically (e.g., computers and shotguns) the number of BXA offices 
to which a license application may be referred for review may increase 
significantly. Accordingly, it is recommended that you limit items on 
each license application to those that are similar and/or related.
    (e) Second application. You may not submit a second license 
application covering the same proposed transaction while the first is 
pending action by BXA.
    (f) Resubmission. If a license application is returned without 
action to you by BXA, and you want to resubmit the license application, 
a new license application must be completed in accordance with the 
instructions contained in Supplement No. 1 to part 748. You must attach 
the original license application returned without action to your new 
license application.
    (g) Emergency processing. If you believe an emergency situation 
beyond your control necessitates expedited processing of your license 
application, you should contact BXA's Exporter Counseling Division of 
the Office of Exporter Services. This office may be reached by 
telephone on (202) 482-4811 or by facsimile on (202) 482-3617. These 
procedures do not apply to emergency handling of Special Comprehensive 
License applications.
    (1) How to request emergency handling. If your license application 
is already pending with BXA, contact the Exporter Counseling Division 
directly on either number listed above. If you have not yet submitted 
your license application, include a written letter with the title 
``Emergency Handling Request'' with your license application. The 
letter must include:
    (i) A justification for the request, supported, where appropriate, 
with copies of orders, communications, or other documentation to show 
that a valid emergency exists. You may be specifically requested to 
supply these or other documents not included with your submission.
    (ii) An acknowledgement by you that any license issued under these 
emergency procedures will be valid only until the end of the month 
following the month in which it is issued and that it may not be 
extended.
    (2) Prompt delivery of emergency handling requests. You are 
responsible for prompt delivery of your request and license application 
to BXA. You may hand-carry your request and license application or use 
the services of an overnight courier to ensure prompt delivery. If you 
desire to hand-carry your request and license application, you may hand 
deliver it to the Exporter Counseling Division at the address stated in 
Sec. 748.2 of this part. If you decide to use an overnight courier, use 
the address listed in Sec. 748.14 of this part. The envelope containing 
your license application should be labeled ``Attn: Exporter Counseling 
Division, Emergency Handling Request Enclosed''.
    (3) Review of emergency handling requests. BXA views an emergency 
as an unforeseeable situation over which you have no control. On the 
day of receipt, BXA will evaluate your license application and decide 
whether emergency handling is warranted. Frequent emergency request 
will be given particularly close scrutiny. This procedure is not 
designed to become a substitute for timely filing of license 
applications.
    (4) Action on license applications processed under emergency 
procedures. If you have submitted an emergency request, you will be 
contacted by the Exporter Counseling Division informing you of whether 
or not your request for emergency processing has been granted. If your 
license is approved under emergency handling procedures, you will be 
notified by BXA of the approval by telephone or in person. You will be 
given the license number and verbal authorization to effect shipment 
immediately, without waiting for the actual license. Any license 
approved under these emergency handling procedures will have a limited 
validity period as described in Sec. 750.7(f) of this subchapter.


Sec. 748.6  Disclosure and substantiation of facts on license 
applications.

    (a) Disclosure requirement--(1) Full disclosure. You, as the 
applicant, are required to make the fullest disclosure of all parties 
in interest to the transaction so that BXA may decide on the license 
application with the fullest knowledge of all relevant facts and so 
that the identity and location of the persons who know the most about 
the transactions may be easily ascertained in the event they must be 
contacted for additional information. Where there is any doubt as to 
which of several persons should be named as a party to the license, you 
must disclose the names of all such persons and the functions to be 
performed by each in an attachment to your license application.
    (i) Parties. The names of all the parties who are concerned with or 
interested in the proposed export or reexport. This includes all 
parties participating on their own account: the applicant as exporter 
or reexporter, the ultimate consignee, the intermediate consignee, and 
the purchaser, as defined in Sec. 748.4(a) of this part. If the license 
application is filed for an account other than that of the applicant, 
the agent, as [[Page 25344]] applicant must disclose the name of the 
agent's principal.
    (ii) Identification of principal. Where more than one person in a 
transaction can fairly be described as being a principal, the license 
application should be accompanied by a statement giving the names and 
addresses of all such persons and their roles in the transaction.
    (2) Reserved.
    (b) Orders and other material facts--(1) Orders involving foreign 
agents. If you are a foreign agent of a U.S. exporter, you are not 
required to have in your possession an order before submitting a 
license application if the order covers items intended for general 
resale by you to presently unknown end-users. In all other 
circumstances, the order must be transmitted to the U.S. exporter 
before the license application is submitted to BXA.
    (2) Requirements for other types of orders. A license application 
must be based on an order. An ``order'' means a communication from a 
person in a foreign country or that person's representative expressing 
an intent to import items from you or order party, as defined in 
Sec. 748.4(b) of this part. While an order must, in any case, be more 
than a mere business inquiry relating to a possible export or reexport, 
it need not be an agreement that can presently be executed or that 
would become a binding contract upon acceptance. Additionally, an order 
need not be an unconditional offer to buy. An order, for instance, may 
be contingent upon certain variable conditions such as market price, 
time of delivery, availability of the items in kinds and quantities 
desired, and other undetermined factors. Such a contingent offer still 
constitutes an order within the meaning of these provisions. Similarly, 
a continuing or ``open'' order that remains at all times flexible in 
some respects may be acceptable. If, however, all of the terms of the 
order are not finally determined before a license application is 
submitted, all negotiations toward the settlement of the terms must 
have been advanced sufficiently to establish the intent of the person 
placing the order to consummate the proposed transaction. BXA will 
consider granting a waiver of this order requirement in situations 
where you are able to show that an exception is warranted. Some 
examples of reasons that, if fully substantiated, might warrant an 
exception are:
    (i) An unusual expenditure of time, money, or technical skill, in 
excess of ordinary sales expenses is necessary before negotiations for 
an order may be pursued and before a bid can be submitted or an order 
obtained.
    (ii) The applicant is under an unusual obligation to export or 
reexport items covered because of a special trade or industry practice.
    (iii) The export or reexport involves a sample, gift, relief, or 
charitable shipment, or other shipment where an order is not normally 
an element of the transaction.
    (3) Request for waiver of ``order'' requirement. A statement 
explaining in full the reason(s) for the requested exception, and any 
documents that substantiate your request, must be submitted with your 
license application. If it is not possible to obtain the required 
documentation at the time the waiver request is submitted, you should 
submit the documents upon receipt. If the exception request is granted 
and the license is issued, certain conditions or limitations on the 
export or reexport may be imposed.
    (c)(1) Documentary Evidence you must have in your possession. 
Before filing a license application for a license, you, as the 
applicant, should have in your possession documentary evidence of the 
order that is referenced on the license application. ``Documentary 
evidence'' means any document(s) from the foreign purchaser or the 
foreign purchaser's representative that contain the terms and 
conditions of an offer to buy the items for which the license is 
requested. Such evidence may take the form of a contract signed by both 
parties, or of letters, telegrams, facsimiles, confirmations or other 
documents that describe the offer of the foreign purchaser to buy or 
the acceptance by the foreign purchaser of the exporter's offer to 
sell. You, or the order party involved in the transaction, must have in 
your possession documentary evidence of the facts related to the 
transaction that appear on the license application including:
    (i) Country of ultimate destination;
    (ii) Names and addresses of the ultimate consignee, intermediate 
consignee (if any), purchaser (if other than ultimate consignee), and 
any other party to the transaction, whether principal or agent, 
including but not limited to brokers, representatives, or other agents 
through whom the order was received;
    (iii) Quantity, value and description of the items to be exported 
or reexported; and
    (iv) End-use of the export or reexport.
    (2) The printed name, address, or nature of business of the 
ultimate consignee or purchaser appearing on a letterhead or order form 
will not constitute evidence of either the ultimate consignee or 
purchaser's identity, country of ultimate destination, or end-use of 
the items described in the license application. This type of 
information does not meet the requirement for documentary evidence as 
described in Sec. 748.6(c) of this section.


Sec. 748.7  General instructions for license applications.

    (a) Application Control Number. Each application form includes a 
preprinted Application Control Number. This Application Control Number, 
consisting of a letter followed by six digits, is for use by BXA when 
processing applications, and by applicants communicating with BXA 
concerning pending applications. The Application Control Number is not 
a license number. This control number is for use by BXA and by 
applicants when communicating with BXA concerning their pending 
applications. This number is used for tracking purposes within the U.S. 
Government.
    (b) Form and instructions. An application for license, whether to 
export or reexport, must be submitted on Form BXA-748P, Multipurpose 
Application (revised [EFFECTIVE DATE] or later), and Forms BXA-748P-A, 
Item Appendix, and Form BXA-748P-B, End-User Appendix. Facsimiles or 
copies of these forms are not acceptable. Instructions for preparing 
Form BXA-748P are contained in Supplement No. 1 to part 748. Remember, 
your license application is not limited to a single shipment, but may 
represent a reasonable estimate of items to be shipped throughout the 
validity of the license.
    (c) Assembly and additional information. All documents or 
correspondence accompanying your license application should bear the 
Application Control Number, and be stapled together. Where necessary, 
BXA may require you to submit additional information beyond that stated 
in the EAR or Form BXA-748P confirming or amplifying information 
contained in your license application.
    (d) Changes in facts. Answers to all items on the license 
application will be deemed to be continuing representations of the 
existing facts or circumstances. Any material or substantive change in 
the terms of the order, or in the facts relating to the purchase 
transaction or other transaction, must be promptly reported to BXA, 
whether a license has been granted or the license application is still 
under consideration. If a license has been granted, such changes must 
be reported immediately to BXA, even [[Page 25345]] though shipments 
against the license may be partially or wholly completed.
    (e) Applying electronically for a license, Classification or 
Advisory Opinion requests. You may apply electronically once you have 
been authorized to do so by BXA. An authorization to submit 
applications electronically may be limited or withdrawn by BXA at any 
time. There are no prerequisites for obtaining permission to submit 
electronically or limitations in terms of country eligibility. However, 
BXA may direct that any electronic application be resubmitted in 
writing, in whole or in part for any reason, including the desire of 
BXA in a particular case to receive documentation in support of the 
application that does not lend itself to electronic submission.
    (1) Requesting approval to submit applications electronically. Your 
company must submit a written request to submit applications 
electronically to BXA at one of the addresses identified in Sec. 748.14 
of this part. Both the envelope and letter must be marked ``Attn: 
Electronic Submission Request''. Your letter must contain your 
company's name, and the address, telephone number, and name of the 
principal contact person in your company. BXA will provide you with 
language for a number of required certifications. Once you have 
completed the necessary certifications, you may be approved by BXA to 
submit applications electronically.
    (2) Assignment and use of company and personal identification 
numbers. (i) Each company granted permission to submit applications 
electronically will be assigned a company identification number. Each 
person approved by BXA to submit applications electronically for the 
company will be assigned a personal identification number (``PIN'') 
telephonically by BXA. A PIN will be assigned to you only if your 
company has certified to BXA that you are to be authorized to act for 
it in making to electronic submissions under these regulations.
    (ii) Your company may reveal the assigned company identification 
number only to the PIN holders, their supervisors, employees, or agents 
of the company with a commercial justification for knowing the company 
identification number.
    (iii) An individual PIN holder may not:
    (A) Disclose the PIN to anyone;
    (B) Record the PIN either in writing or electronically;
    (C) Authorize another person to use the PIN; or
    (D) Use the PIN following termination by BXA or your company of 
your authorization or approval for PIN use.
    (iv) To prevent misuse of the PIN:
    (A) If a PIN is lost, stolen or otherwise compromised, the company 
and the PIN holder must report the loss, theft or compromise of the PIN 
immediately by telephoning BXA at (202) 482-0436. You must confirm this 
notification in writing within two business days to BXA at the address 
provided in Sec. 748.14 of this part.
    (B) Your company is responsible for immediately notifying BXA 
whenever a PIN holder leaves the employ of the company or otherwise 
ceases to be authorized by the company to submit applications 
electronically on its behalf.
    (v) No person may use, copy, steal or otherwise compromise a PIN 
assigned to another person; and no person may use, copy, steal or 
otherwise compromise the company identification number where the 
company has not authorized such person to have access to the number.
    (3) Electronic submission of applications. (i) All applications. 
Upon submission of the required certifications and approval of the 
company's request to use electronic submission, BXA will provide 
instructions both on the method to transmit applications electronically 
and the process for submitting required supporting documents and 
technical specifications. These instructions may be modified by BXA 
from time to time.
    (ii) License Applications. The electronic submission of a 
application for license will constitute an export control document. 
Such submissions must provide the same information as written 
applications and are subject to the recordkeeping provisions of part 
762 of this subchapter. The applicant company and PIN holder submitting 
the application will be deemed to make all representations and 
certifications as if the submission were made in writing by the company 
and signed by the submitting PIN holder. Electronic submission of a 
license application will be considered complete upon the transmittal of 
the application to BXA or to an entity under contract to receive such 
applications for BXA.
    (4) Maintenance of a log. Your company must maintain a log, either 
manually or electronically, specifying the date and time of each 
electronic submission, the ECCNs of items on each electronic 
submission, and the name of the employee or agent submitting the 
license application. This log may not be altered. Written corrections 
must be made in a manner that does not erase or cover original entries. 
If the log is maintained electronically, corrections may only be made 
as notations.
    (5) Updating. An applicant company must promptly notify BXA of any 
change in its name or address. If your company wishes to have an 
individual added as a PIN holder, your company must advise BXA and 
follow the instructions provided by BXA. Your company should conduct 
periodic reviews to ensure that PINs are held only by individuals whose 
current responsibilities make it necessary and appropriate that they 
act for the company in this capacity.
    (f) Request for extended validity period. An extended validity 
period will generally be granted if your transaction is related to a 
multi-year project, when production lead time will not permit export or 
reexport during the original validity period of the license, when an 
unforeseen emergency prevents shipment within the 24-month validity of 
the license, or for other similar circumstances. A continuing 
requirement to supply spare or replacement parts will not normally 
justify an extended validity period. To request an extended validity 
period, include justification for your request in Block 24 on the 
application.
    (g) Applications for the export of items from the United States. A 
license application to export items from the United States may be made 
only by a person subject to the jurisdiction of the United States who 
is in fact the exporter, or by the applicant's duly authorized agent. 
An application may be made on behalf of a person not subject to the 
jurisdiction of the United States by an authorized agent in the United 
States, who then becomes the applicant.


Sec. 748.8  Additional license application requirements.

    In addition to the instructions contained in Supplement No. 1 to 
part 748, you must also ensure that the additional requirements for 
certain items or types of transactions described below are addressed in 
your license application. Any block not identified below must be 
completed in accordance with the instructions contained in Supplement 
No. 1 to part 748. All ``blocks'' discussed in this section relate to 
those appearing on the Form BXA-748P, unless otherwise noted.
    (a) Chemicals, medicinals, and pharmaceuticals. If you are 
submitting a license application for the export or reexport of 
chemicals, medicinals,     and/or pharmaceuticals, the following 
information must be provided in the Block 22 on the license 
application.
    (1) Facts relating to the grade, form, concentration, mixture(s), 
or ingredients as may be necessary to identify the item accurately, 
and; [[Page 25346]] 
    (2) In instances where Chemical Abstract Service Registry (C.A.S.) 
numbers exist, they must be identified.
    (b) Communications intercepting devices. If you are required to 
submit a license application under Sec. 742.13 of this part, you must 
enter the words ``Communications Intercepting Device(s)'' in Block 9.
    (c) Digital computers and related equipment. If your license 
application involves items controlled by both Category 4 and Category 
5, your license application must be submitted according to the 
principal function of the equipment. If the principal function is 
telecommunications, a Composite Theoretical Performance (CTP) is not 
required. Computers, related equipment, or software performing 
telecommunication or local area network functions will be evaluated 
against the telecommunications performance characteristics of Category 
5, while cryptographic, cryptoanalytic, certifiable multi-level 
security or certifiable user isolation functions, or systems that limit 
electromagnetic compatibility (EMC) will be evaluated against the 
information security performance characteristics of Category 5. (If 
your license application involves a supercomputer, See Sec. 742.12 of 
this part for application requirements.)
    (1) Requirements for license applications involving digital 
computers. If you are submitting a license application to export or 
reexport ``digital computers'' or equipment containing digital 
computers to destinations in Country Group D:1 (See Supplement No. 1 to 
part 740 of this subchapter), or to upgrade existing ``digital 
computer'' installations in those countries, you must include in 
addition to the CTP in Block 22(b) the following information:
    (i) A configuration diagram of the entire system must be submitted 
if the equipment exceeds the limits of the Advisory Notes that indicate 
a likelihood of approval for Country Group D:1 in the appropriate ECCN 
in the Commerce Control List (CCL); and
    (ii) Technical specifications and product brochures to corroborate 
the data supplied in your license application.
    (2) Additional requirements. License applications to export or 
reexport computers or related equipment that are described in Advisory 
Note 6 to Category 4, or that exceed any of the limits specified in 
Advisory Notes 3 or 6 to Category 4, must include:
    (i) A signed statement by a responsible representative of the end-
user or the importing agency describing the end-use and certifying that 
the ``digital'' computers or related equipment:
    (A) Will be used only for civil applications; and
    (B) Will not be reexported or otherwise disposed of without prior 
written authorization from the BXA;
    (ii) A full description of the equipment and its intended 
application and workload; and
    (iii) A complete identification of all end-users and their 
activities.
    (d) Gift parcels; consolidated in a single shipment. If you are 
submitting a license application to export multiple gift parcels for 
delivery to individuals residing in a foreign country, you must include 
the following information in your license application. NOTE: Each gift 
parcel must meet the terms and conditions described in License 
Exception GFT (See Sec. 740.16 of this subchapter).
    (1) In Block 16, enter the word ``None'';
    (2) In Block 18, enter the word ``Various'' instead of the name and 
address of a single ultimate consignee;
    (3) In Block 22(e), indicate the specific number of gift parcels 
you believe may represent a reasonable estimate of the number of 
parcels to be shipped during the validity of the license;
    (4) In Block 22(j), enter the phrase ``Gift Parcels'';
    (5) In Block 23, indicate a reasonable value approximation 
proportionate to the quantity of gift parcels identified in Block 
22(e); and
    (6) In Block 21, enter the phrase ``For personal use by 
recipients''.
    (e) Intransit through the United States. If you are submitting a 
license application for items moving intransit through the United 
States that do not qualify for License Exception TUS (See Sec. 740.9 of 
this subchapter), you must provide the following information with your 
license application:
    (1) In Block 9, enter the phrase ``Intransit Shipment'';
    (2) In Block 24, enter the name and address of the foreign 
consignor who shipped the items to the United States and a statement 
that the shipment is wholly of foreign origin;
    (3) Any available evidence showing the approval or acquiescence of 
the exporting country (or the country of which the exporter is a 
resident) for shipments to the proposed ultimate destination. Such 
evidence may be in the form of a Transit Authorization Certificate; and
    (4) Any support documentation required by Sec. 748.9 of this part 
for the country of ultimate destination.
    (f) Intransit outside of the United States. If you are submitting a 
license application based on General Prohibition No. 10 stated in 
Sec. 734.2(b)(10) of this subchapter and identification of the 
intermediate consignee in the country of unlading or transit is unknown 
at the time the license application is submitted, the country of 
unlading or transit must be shown in Block 17.
    (g) Nuclear Non-proliferation items and end-uses. (1) Statement 
requirement. If a license is required to export or reexport items under 
Sec. 742.3 of this subchapter, prior to submitting a license 
application you must obtain a signed written statement from the foreign 
importer certifying the following:
    (i) The items to be exported or replicas thereof (``replicas'' 
refers to items produced abroad based on physical examination of the 
item originally exported, matching it in all critical design and 
performance parameters), will not be used in any of the activities 
described in Sec. 742.3 of this subchapter; and
    (ii) Written authorization will be obtained from the BXA prior to 
reexporting the items, unless they are destined to Canada or would be 
eligible for export from the United States to the new country of 
destination under License Exception NSG (See Sec. 740.6 of this 
subchapter).
    (2) License application requirements. Along with the required 
certification, you must include the following information in your 
license application:
    (i) In Block 6, place an (X) in the box titled ``Nuclear 
Certification'';
    (ii) In Block 9, enter the phrase ``NUCLEAR CONTROLS'';
    (iii) In Block 21, provide, if known, the specific geographic 
locations of any installations, establishments, or sites at which the 
items will be used;
    (iv) In Block 22(j), if applicable, include a description of any 
specific features of design or specific modifications that make the 
item capable of nuclear explosive activities, or of safeguarded or 
unsafeguarded nuclear activities; and
    (v) In Block 24, if your license application is being submitted 
because you know or have reason to know that your transaction involves 
a nuclear end-use described in Sec. 744.2 of this subchapter, you must 
fully explain the basis for your knowledge that the items are intended 
for the purpose(s) described in Sec. 744.2 of this subchapter. 
Indicate, if possible, the specific end-use(s) the items will have in 
designing, developing, fabricating, or testing nuclear weapons or 
nuclear explosive devices or in designing, constructing, 
[[Page 25347]] fabricating, or operating the facilities described in 
Sec. 742.3 of this subchapter.
    (h) Numerical control devices, motion control boards, numerically 
controlled machine tools, dimensional inspection machines, direct 
numerical control systems, specially designed assemblies and specially 
designed software. (1) If you are submitting a license application to 
export, reexport, or request BXA to classify numerical control devices, 
motion control boards, numerically controlled machine tools, 
dimensional inspection machines, and specially designed software you 
must include the following information in your license application:
    (i) For numerical control devices and motion control boards:
    (A) Make and model number of the control unit;
    (B) Description and internal configuration of numerical control 
device. If the device is a computer with motion control board(s), then 
include the make and model number of the computer;
    (C) Description of the manner in which a computer may be connected 
to the CNC unit for on-line processing of CAD data. Specify the make 
and model of the computer;
    (D) Number of axes the control unit is capable of simultaneously 
controlling in a coordinated contouring mode, and type of interpolation 
(linear, circular, and other);
    (E) Minimum programmable increment;
    (F) Number and type of data communication interfaces;
    (G) A description and an itemized list of all software/firmware to 
be supplied with the control device or motion control board, including 
software/firmware for axis interpolation function and for any 
programmable control unit or device to be supplied with the control 
unit;
    (H) Description of capabilities related to ``real time processing'' 
and receiving computer aided-design as described in ECCN 2B01.a.2.a and 
a.2.b and ECCN 2B01.b.2 and b.3;
    (I) A description of capability to accept additional boards or 
software that would permit an upgrade of the electronic device or 
motion control board above the control levels specified in ECCN 2B01; 
and
    (J) Specify if the electronic device has been downgraded, and if so 
can it be upgraded in future.
    (ii) For numerically controlled machine tools and dimensional 
inspection machines:
    (A) Name and model number of machine tool or dimensional inspection 
machine;
    (B) Type of equipment, e.g., horizontal boring machine, machining 
center, dimensional inspection machine, turning center, water jet, 
etc.;
    (C) Description of the linear and rotary axes capable of being 
simultaneously controlled in a coordinated contouring mode, regardless 
of the fact that the coordinated movement of the machine axis may be 
limited by the numerical control unit supplied by the machine tool;
    (D) Maximum workpiece diameter for cylindrical grinding machines;
    (E) Motion of the spindle axis measured in the axial direction in 
one revolution of the spindle, and a description of the method of 
measurement for turning machine tools only;
    (F) Motion of the spindle axis measured in the radial direction in 
one revolution of the spindle, and a description of the method of 
measurement;
    (G) Overall positioning accuracy, and a description of the method 
for measurement; and
    (H) Slide motion test results if required as described in ECCN 
2B01.c.1.b.6.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products. BXA will consider license applications to export 
or reexport to multiple consignees or multiple countries. Such requests 
will not be approved for countries listed in Country Group E:1 (See 
Supplement No. 1 to part 740 of this subchapter), but may be approved 
only in limited circumstances for countries listed in Country Group 
D:1. If you are requesting approval of multiple countries or 
consignees, enter the word ``Various'' in Block 18, and list the 
countries or consignees in Block 24.
    (1) License applications for the export of parts and components. If 
you are submitting a license application for the export of parts, 
components, or materials to be incorporated abroad into products that 
will then be sent to designated third countries, you must enter in 
Block 21, a description of end-use including a general description of 
the commodities to be manufactured, their typical end-use, and the 
countries where those commodities will be marketed. The countries may 
be listed specifically or may be identified by Country Groups, 
geographic areas, etc.
    (2) License applications for the reexport of incorporated parts and 
components. If you are submitting a license application for the 
reexport of parts, components, or materials incorporated abroad into 
products that will be sent to designated third countries you must 
include the following information in your license application:
    (i) In Block 9, enter the phrase ``Parts and Components'';
    (ii) In Block 18, enter the name, street address, city and country 
of the foreign party who will be receiving the foreign-made product (if 
various, enter ``Various'' in Block 18, and list the specific 
countries, Country Groups, or geographic areas in Block 24);
    (iii) In Block 20, enter the name, street address, city, and 
country of the foreign party who will be reexporting the foreign-made 
product incorporating U.S. origin parts, components or materials;
    (iv) In Block 22(e), specify the quantity for each foreign-made 
product. If this information is unknown, enter ``Unknown'' in Block 
22(e);
    (v) In Block 22(j), describe the foreign-made product that will be 
reexported, specifying type and model or part number. Attach brochures 
or specifications, if available. Show as part of the description the 
unit value, in U.S. dollars, of the foreign-made product (if more than 
one foreign-made product is listed on the license application, specify 
the unit value for each type/model/part number). Also include a 
description of the U.S. content (including the applicable Export 
Control Classification Number(s)) and its value in U.S. dollars. If 
more than one foreign-made product is identified on the license 
application, describe the U.S. content and specify the U.S. content 
value for each foreign-made product. Also, provide sufficient 
supporting information to explain the basis for the stated values. To 
the extent possible, explain how much of the value of the foreign-made 
product represents foreign origin parts, components, or materials, as 
opposed to labor, overhead, etc. When the U.S. content varies and 
cannot be specified in advance, provide a range of percentage and value 
that would indicate the minimum and maximum U.S. content;
    (vi) Include separately in Block 22(j) a description of any U.S. 
origin spare parts to be reexported with the foreign-made product, if 
they exceed the amount allowed by Sec. 740.10 of this subchapter. Enter 
the quantity, if appropriate, in Block 22(e). Enter the ECCN for the 
spare parts in Block 22(a) and enter the value of the spare parts in 
Block 22(h);
    (vii) In Block 22(h), enter the digit ``0'' for each foreign-made 
product;
    (viii) In Block 23, enter the digit ``0'';
    (ix) In Block 21, describe the activity of the ultimate consignee 
identified in Block 18 and the end-use of the foreign-made product. 
Indicate the final configuration if the product is intended 
[[Page 25348]] to be incorporated in a larger system. If the end-use is 
unknown, state ``unknown'' and describe the general activities of the 
end-user;
    (x) If the foreign-made product is the direct product of U.S. 
origin technology that was exported or reexported subject to written 
assurance, a request for waiver of that assurance, if necessary, may be 
made in Block 24. If U.S. origin technology will accompany a shipment 
to a country listed in Country Group D:1 or E:2 (see Supplement No. 1 
to part 740 of this subchapter) describe in Block 24 the type of 
technology and how it will be used.
    (j) Ship stores, plane stores, supplies, and equipment. (1) Vessels 
under construction. If you are submitting a license application for the 
export or reexport of items, including ship stores, supplies, and 
equipment, to a vessel under construction must include the following 
information in your license application:
    (i) In Block 18, enter the name, street address, city, and country 
of the shipyard where vessel is being constructed;
    (ii) In Block 22(j), enter the following information, state the 
length of the vessel for a vessel under 12 m (40 ft) in length. For a 
vessel 12 m (40 ft) in length or over, provide the following 
information (if this information is unknown, enter ``Unknown'' in this 
Block):
    (A) Hull number and name of vessel;
    (B) Type of vessel;
    (C) Name and business address of prospective owner, and the 
prospective owner's nationality; and
    (D) Country of registry or intended country of registry.
    (2) Aircraft under construction. If you are submitting a license 
application for the export or reexport of items, including plane 
stores, supplies, and equipment, to an aircraft under construction must 
include the following information in your license application:
    (i) In Block 18, enter the name and address of the plant where the 
aircraft is being constructed;
    (ii) In Block 22(j), enter the following information (if this 
information is unknown, enter ``Unknown'' in this Block):
    (A) Type of aircraft and model number;
    (B) Name and business address of prospective owner and his 
nationality; and
    (C) Country of registry or intended country of registry.
    (3) Operating vessels and aircraft. If you are submitting a license 
application for the export or reexport of items, including ship or 
plane stores, supplies, and equipment to an operating vessel or 
aircraft, whether in operation or being repaired, must include the 
following information in your license application:
    (i) In Block 18, enter the name of the owner, the name of the 
vessel, if applicable, and port or point where the items will be taken 
aboard;
    (ii) In Block 18, enter the following statement if, at the time of 
filing the license application, it is uncertain where the vessel or 
aircraft will take on the items, but it is known that the items will 
not be shipped to country listed in Country Group D:1 and E:2 (see 
Supplement No. 1 to part 740 of this subchapter):
    Uncertain; however, shipment(s) will not be made to Country Groups 
D:1 or E:2.
    (iii) Provide information as described in Sec. 748.8(l)(1)(ii) of 
this section for vessels or information contained in 
Sec. 748.8(l)(2)(ii) of this section for aircraft.
    (k) Regional stability controlled items. If you are submitting a 
license application for the export or reexport of items controlled for 
regional stability reasons and subject to licensing under RS Column 1 
on the Country Chart, your license application must be accompanied by 
full technical specifications. License applications received without 
full technical specifications will be promptly returned without action, 
without prior notice from BXA.
    (l) Reexports. If you know that an item that requires a license to 
be exported from the United States to a certain foreign destination 
will be reexported to a third destination also requiring approval, such 
a request must be included on the license application. The license 
application must specify the country to which the reexport will be made 
in Block 24.
    (m) Robots. If you are submitting a license application for the 
export or reexport of items controlled by ECCNs 2B07 or 2D01 (including 
robots, robot controllers, end-effectors, or related software) the 
following information must be provided in Block 24:
    (1) Specify if the robot is equipped with a vision system and its 
make, type, and model number;
    (2) Specify if the robot is specially designed to comply with 
national safety standards for explosive munitions environments;
    (3) Specify if the robot is specially designed for outdoor 
applications and if it meets military specifications for those 
applications;
    (4) Specify if the robot is specially designed for operating in an 
electro-magnetic pulse (EMP) environment;
    (5) Specify if the robot is specially designed or rated as 
radiation-hardened beyond that necessary to withstand normal industrial 
(i.e., non-nuclear industry) ionizing radiation;
    (6) Describe the robot's capability of using sensors, image 
processing or scene analysis to generate or to modify robot program 
instructions or data;
    (7) Describe the manner in which the robot may be used in nuclear 
industry/manufacturing; and
    (8) Specify if the robot controllers, end-effectors, or software 
are specially designed for robots controlled by ECCN 2B07, and why.
    (n) Short Supply controlled items. If you are submitting a license 
application for the export of items controlled for short supply 
reasons, you must consult part 754 of this subchapter for instructions 
on preparing your license application.
    (o) Technology--(1) License application instructions. If you are 
submitting a license application for the export or reexport of 
technology you must check the box labeled ``Letter of Explanation'' in 
Block 6, enter the word ``Technology'' in Block 9, leave Blocks 22(e) 
and (i) blank, and include a general statement that specifies the 
technology (e.g., blueprints, manuals, etc.) in Block 22(j).
    (2) Letter of explanation. Each license application to export or 
reexport technology must be supported by a comprehensive letter of 
explanation. This letter must describe all the facts for a complete 
disclosure of the transaction including, if applicable, the following 
information:
    (i) The identities of all parties to the transaction;
    (ii) The exact project location where the technology will be used;
    (iii) The type of technology to be exported or reexported;
    (iv) The form in which the export or reexport will be made;
    (v) The uses for which the data will be employed;
    (vi) An explanation of the process, product, size, and output 
capacity of all items to be produced with the technology, if 
applicable, or other description that delineates, defines, and limits 
the data to be transmitted (the ``technical scope''); and
    (vii) The availability abroad of comparable foreign technology.
    (3) Special provisions. (i) Technology controlled for national 
security reasons. If you are submitting a license application to export 
technology controlled for national security reasons to a country not 
listed in Country Group D:1 or E:2 (see Supplement No. 1 to part 740 of 
this subchapter), you must obtain [[Page 25349]] a written letter from 
the ultimate consignee assuring that, unless prior authorization is 
obtained from BXA, the consignee will not knowingly reexport the 
technology to any destination, or export the direct product of the 
technology directly to a country listed in Country Group D:1 or E:2 
(See Supplement No. 1 to part 740 of this subchapter). If you are 
unable to obtain this letter of assurance from your consignee, you must 
state in your license application why the assurances could not be 
obtained.
    (ii) Maritime nuclear propulsion plants and related items. Maritime 
nuclear propulsion plants and related items including maritime (civil) 
nuclear propulsion plants, their land prototypes, and special 
facilities for their construction, support, or maintenance, including 
any machinery, device, component, or equipment specifically developed 
or designed for use in such plants or facilities. If you are submitting 
a license application to export or reexport technology relating to any 
of these items you must include the following information in your 
license application:
    (A) A description of the foreign project for which the technology 
will be furnished;
    (B) A description of the scope of the proposed services to be 
offered by the applicant, his consultant(s), and his subcontractor(s), 
including all the design data that will be disclosed;
    (C) The names, addresses and titles of all personnel of the 
applicant, the applicant's consultant(s) and subcontractor(s) who will 
discuss or disclose the technology or be involved in the design or 
development of the technology;
    (D) The beginning and termination dates of the period of time 
during which the technology will be discussed or disclosed and a 
proposed time schedule of the reports the applicant will submit to BXA, 
detailing the technology discussed or disclosed during the period of 
the license;
    (E) The following certification:

    I (We) certify that if this license application is approved, I 
(we) and any consultants, subcontractors, or other persons employed 
or retained by us in connection with the project licensed will not 
discuss with or disclose to others, directly or indirectly, any 
technology relating to U.S. naval nuclear propulsion plants. I (We) 
further certify that I (we) will furnish to the Bureau of Export 
Administration all reports and information it may require concerning 
specific transmittals or disclosures of technology under any license 
granted as a result of this license application.

    (F) A statement of the steps that you will take to assure that 
personnel of the applicant, the applicant's consultant(s) and 
subcontractor(s) will not discuss or disclose to others technology 
relating to U.S. naval nuclear propulsion plants; and
    (G) A written statement of assurance from the foreign importer as 
described in Sec. 748.8(q)(2) of this section.
    (p) Temporary exports or reexports. If you are submitting a license 
application for the temporary export or reexport of an item (not 
eligible for License Exception TMP (See Sec. 740.8 of this subchapter)) 
you must include the following certification in Block 24:
    The items described on this license application are to be 
temporarily exported (or reexported) for (state the purpose e.g., 
demonstration, testing, exhibition, etc.), used solely for the 
purpose authorized, and returned to the United States (or 
originating country) as soon as the temporary purpose has ended, but 
in no case later than two years of the date of export (or reexport), 
unless other disposition has been authorized in writing by the 
Bureau of Export Administration.


Sec. 748.9  Support documentation for license applications.

    (a) Exemptions. If you plan to submit a license application 
involving one of the following situations, no support documentation is 
required. Simply submit the license application.
    (1) All exports and reexports involving ultimate consignees located 
in any of the following countries:
    Bahamas, Barbados, Belize, Bermuda, Bolivia, Brazil, Canada, Chile, 
Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, French 
West Indies, French Guiana, Greenland, Guatemala.
    Guyana, Haiti, Honduras, Jamaica, Leeward and Windward Islands, 
Mexico, Miquelon and St. Pierre Islands, Netherlands Antilles, 
Nicaragua, Panama, Paraguay, Peru, Surinam, Trinidad and Tobago, 
Uruguay, and Venezuela.
    (2) The ultimate consignee or purchaser is a foreign government(s) 
or foreign government agency(ies). To determine whether the parties to 
your transaction meet the definition of ``government agency'' refer to 
the definition contained in Sec. 730.3 of this subchapter. Remember, if 
both the ultimate consignee and purchaser are not a foreign government 
or foreign government agency, a statement is required from the 
nongovernmental party. However, support documents are required from 
governments of the People's Republic of China, India, Bulgaria, Czech 
Republic, Hungary, Poland, Romania, and Slovakia.
    (3) The license application is filed by, or on behalf of, a relief 
agency registered with the Advisory Committee on Voluntary Foreign Aid, 
U.S. Agency for International Development, to a member agency in the 
foreign country.
    (4) The license application is submitted to export or reexport 
items for temporary exhibition, demonstration, or testing purposes.
    (5) The license application is submitted for items controlled for 
short supply reasons (See part 754 of this subchapter).
    (6) The license application is submitted under the Special 
Comprehensive License described in part 752 of this subchapter.
    (b) Support documentation requirements. Certain license 
applications must be supported by documents designed to elicit 
information concerning the disposition of the items intended for export 
or reexport. These support documents must be either submitted at the 
time the license application is filed or retained in the applicant's 
files in accordance with the recordkeeping provisions of part 762 of 
this subchapter. The type of support documentation required is 
dependent on the item involved and the country of ultimate destination. 
To determine which type of support documentation is required, answer 
the following questions:
    (1) Does your transaction involve items controlled for national 
security reasons?
    (i) If yes, continue with question number 2.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee and Purchaser. Proceed directly to Sec. 748.11 of this part.
    (2) Does your transaction involve items controlled for national 
security reasons destined for Bulgaria, the Czech Republic, Hungary, 
India, the People's Republic of China, Poland, Romania, or Slovakia?
    (i) If yes, your transaction may require an Import or End-User 
Certificate. Proceed to Sec. 748.10 of this part.

    Note: If the destination is the People's Republic of China, a 
Statement of Ultimate Consignee and Purchaser may be substituted for 
a PRC End-User Certificate under the following conditions: (1) The 
item to be exported is described in an Advisory Note for Country 
Group D:1 (See Supplement No. 1 to part 740 of this subchapter) on 
the CCL, or; (2) The item to be exported (i.e., replacement parts 
and sub-assemblies) is for servicing previously exported items and 
is valued at $75,000 or less; or (3) The End-User is not a Chinese 
entity.

    (ii) If no, continue with question number 3.
    (3) Does your transaction involve items controlled for national 
security [[Page 25350]] reasons destined for one of the following 
countries (this applies only to those overseas territories specifically 
listed):
    Argentina, Australia, Austria, Belgium, Denmark, Finland, France, 
Germany, Greece, Hong Kong, Ireland, Republic of, Italy, Japan, Korea, 
Republic of.
    Liechtenstein Luxembourg, Netherlands, New Zealand, Norway, 
Pakistan, Portugal, Singapore, Spain, Sweden, Switzerland, Taiwan, 
Turkey, and United Kingdom.
    (i) If yes, your transaction may require an Import Certificate. 
Proceed to Sec. 748.10 of this part.,
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee or Purchaser. Proceed to Sec. 748.11 of this part.
    (c) License applications requiring support documentation. License 
applications requiring support by either a Statement by the Ultimate 
Consignee and Purchaser or an Import or End-User Certificate must 
indicate the type of support document obtained in Block 6. If the 
support document is an Import or End User Certificate, you must also 
identify the originating country and number of the Certificate in Block 
13. If a license application is submitted without either the required 
support document, the license application will be immediately returned 
without action unless the reasons for failing to obtain the document 
are supplied in Block 24 or in an attachment to the license 
application.
    (1) License applications supported by an Import or End User 
Certificate. If submission of the original certificate is not required 
in Sec. 748.10(g) of this part, you may submit your license application 
upon receipt of a facsimile or other legible copy of the Import or End 
User Certificate provided that no shipment will be made against any 
license issued based upon the Import or End User Certificate prior to 
receipt and retention of the original statement by the applicant. If 
Sec. 748.10(g) requires submission of the original certificate with 
your license application, you must submit the original. Copies will not 
be accepted.
    (2) License applications supported by Ultimate Consignee and 
Purchaser statements. These types of license applications may be 
submitted upon receipt of a facsimile or other legible copy of the 
original statement provided that the original manually-signed statement 
is retained by the ultimate consignee, and you retain a copy of the 
statement.
    (d) Exceptions to obtaining the required support document. BXA will 
consider the granting of an exception to the requirement for supporting 
document where the requirements cannot be met due to circumstances 
beyond your control. An exception will not be granted contrary to the 
objectives of the U.S. export control program. Refer to Sec. 748.12(d) 
of this part for specific instructions on procedures for requesting an 
exception.
    (e) Validity period. (1) When an Import or End-User Certificate or 
a Statement by Ultimate Consignee and Purchaser is required to support 
one or more license applications, you must submit the first license 
application within the validity period shown on the Certificate, or 6 
months from the date the Certificate was issued (or Statement signed), 
whichever is shorter.
    (2) All subsequent license applications supported by the same 
Certificate or Statement must be submitted to BXA within one year from 
the date that the first license application, supported by the same 
Certificate or Statement, was submitted to BXA.
    (f) English translation requirements. All abbreviations, coded 
terms, or other expressions on support documents having special 
significance in the trade or to the parties to the transaction must be 
explained on an attachment to the document. Documents in a language 
other than English must be accompanied by an attachment giving an 
accurate English translation, either made by a translating service or 
certified by you to be correct. Explanations or translations should be 
provided on a separate piece of paper, and not entered on the support 
documents themselves.
    (g) Responsibility for full disclosure. (1) Information contained 
in a support document cannot be construed as extending or expanding the 
specific information supplied in a license application or license 
issued by BXA. In terms of the disclosure of facts pertaining to a 
transaction(s), the license application covering the transaction must 
be self-contained. The authorizations contained in the resulting 
license are not extended by the general information contained in Import 
Certificate, End-User Certificate or Statement by Ultimate Consignee 
and Purchaser with regard to the reexport from the country of 
destination or with regard to any other facts relative to the 
transaction as reported on the license application.
    (2) Misrepresentations, either through failure to disclose facts, 
concealing a material fact, or furnishing false information, will 
subject all parties to administrative action by BXA. Administrative 
action may include suspension, revocation, or denial of licensing 
privileges and denial of other participation in exports from the United 
States.
    (3) In obtaining the required support document, you as the 
applicant are not relieved of the responsibility for full disclosure of 
any other information concerning the ultimate destination and end-use 
of which you has knowledge or belief, even if inconsistent with the 
representations made in the Import Certificate, End-User Certificate, 
or Statement by Ultimate Consignee and Purchaser. You are responsible 
for promptly notifying BXA of any change in the facts contained in the 
support document that comes to the your attention subsequent to the 
issuance of the support document.
    (h) Effect on license application review. BXA reserves the right in 
all respects to determine to what extent any license will be issued 
covering items for which an Import or End-User Certificate has been 
issued by a foreign government. BXA will not seek or undertake to give 
consideration to recommendations from the foreign government as to the 
action to be taken on a license application. A supporting document 
issued by a foreign government will be only one of the considerations 
upon which BXA will base its licensing action, since end-uses and other 
considerations are important factors in the decision making process.
    (i) Request for return of support documents submitted to BXA. If an 
applicant is requested by a foreign importer to return an unused or 
partially used Import or End-User Certificate submitted to BXA in 
support of a license application, the procedure provided below should 
be followed:
    (1) Applicants must send their letter request for return of an 
Import or End-User Certificate to the address stated in Sec. 748.14 of 
this part, ``Attn: Import/End-User Certificate Request''.
    (2) The letter request must include the name and address of the 
importer, the Application Control Number under which the original 
Import or End-User Certificate was submitted, the Application Control 
Numbers for any subsequent license applications supported by the same 
certificate, and one of the following statements, if applicable:
    (i) If the certificate covers a quantity greater than the total 
quantity identified on the license application(s) submitted against it, 
a statement that the certificate will not be used in connection with 
another license application.
    (ii) If you do not intend to make any additional shipments under a 
license covered by the certificate, or is in the 
[[Page 25351]] possession of an expired license covered by the 
certificate, a statement to this effect, indicating the unshipped 
items.
    (j) Recordkeeping requirements for returning certificates retained 
by the applicant. (1) Though the recordkeeping provisions of these 
regulations require that all original support documents are retained 
for a period of five years, you may return an unused or partially used 
certificate at the request of a foreign importer provided that you 
submit the original certificate, accompanied by a letter of 
explanation, and a copy of each license covered by the certificate, and 
list of all shipments made against each license to BXA at the address 
listed in Sec. 748.14. BXA will notify you in writing whether your 
request has been granted. The following information must be contained 
in your letter of explanation:
    (i) A statement citing the foreign importer's request for return of 
the certificate;
    (ii) The license number(s) that have been issued against the 
certificate (including both outstanding and expired licenses); and
    (iii) If the certificate covers a quantity greater than the total 
quantity stated on the license(s), you must include a statement that 
the certificate will not be used in connection with another license 
application.
    (2) If your request is granted, BXA will return the certificate to 
you. You must make a copy of the certificate before you return the 
original to the importer. This copy must show all the information 
contained on the original certificate including any notation made on 
the certificate by BXA. The copies must be retained on file along with 
your correspondence in accordance with the recordkeeping provisions in 
part 762 of this subchapter.


Sec. 748.10  Import and End-User Certificates.

    (a) Scope. There are a variety of Import and End-User Certificates 
currently in use by various governments. The control exercised by the 
government issuing the Import or End-User Certificate is in addition to 
the conditions and restrictions placed on the transaction by BXA. The 
laws and regulations of the United States are in no way modified, 
changed, or superseded by the issuance of an Import or End-User 
Certificate. This section describes exceptions and relationships true 
for both Import and End-User Certificates, and applies only to 
transactions involving national security controlled items destined for 
one of the countries identified in Sec. 748.9(b)(2) and (b)(3) of this 
part.
    (b) An Import or End-User Certificate must be obtained if:
    (1) Any items on your license application are controlled for 
national security reasons (NS); and
    (2) Your license application involves the export of items 
classified in a single entry on the CCL, the total value of which 
exceeds $5,000.
    (i) Your license application may list several separate CCL entries. 
If any entry controlled for national security reasons exceeds $5,000, 
then an Import or End-User Certificate must be obtained covering all 
items controlled for national security reasons on your license 
application;
    (ii) If your license application involves a lesser transaction that 
is part of a larger order exceeding $5,000, an Import or End-User 
Certificate must be obtained.
    (iii) If you are specifically requested by BXA to obtain an Import 
Certificate for a transaction valued under $5,000.
    (c) Where to obtain Import and End-User Certificates. See 
Supplement No. 3 to part 748 for a list of the authorities 
administering the Import Certificate/Delivery Verification and End-User 
Certificate Systems in other countries.
    (d) How to obtain an Import or End-User Certificate. (1) Applicants 
must request that the importer (e.g., ultimate consignee or purchaser) 
obtain the Import or End-User Certificate, and that it be issued 
covering only those items that are controlled for national security 
reasons. Importers should not be requested to obtain an Import or End-
User Certificate for items that are controlled for reasons other than 
national security. Upon receipt, the importer must transmit the 
original document to the applicant.
    (2) The applicant's name must appear on the Import or End-User 
Certificate submitted to BXA as either the applicant, supplier, or 
order party. The Import Certificate may be made out to either the 
ultimate consignee or the purchaser, even though they are different 
parties, as long as both are located in the same country.

    Note: You should furnish the consignee the item description 
contained in the CCL to be used in applying for the Import or End-
User Certificate. It is also advisable to furnish a manufacturer's 
catalog, brochure, or technical specifications if the item is new.

    (i) If your transaction requires support of a PRC End-User 
Certificate, you must ensure the following information is included on 
the PRC End-User Certificate signed by an official of the Department of 
Science and Technology of the Ministry of Foreign Trade and Economic 
Cooperation (MOFTEC) with MOFTEC's seal affixed to it:
    (A) Title of contract and contract number (optional);
    (B) Names of importer and exporter;
    (C) End-User and end-use;
    (D) Description of the item, quantity and dollar value; and
    (E) Signature of the importer and date.
    (ii) Reserved.
    (e) Triangular symbol on International Import Certificates. (1) In 
accordance with international practice, the issuing government may 
stamp a triangular symbol on the International Import Certificate 
(IIC). This symbol is notification that the importer does not intend to 
import or retain the items in the country issuing the certificate, but 
that, in any case, the items will not be delivered to any destination 
except in accordance with the export regulations of the issuing 
country.
    (2) If you receive an IIC bearing a triangular symbol, you must 
identify all parties to the transaction on the license application, 
including those located outside the country issuing the IIC. If the 
importer declines to provide you with this information, you may advise 
the importer to provide the information directly to BXA through a U.S. 
Foreign Commercial Service office, or in a sealed envelope to you 
marked ``To be opened by BXA only''.
    (f) Multiple license applications supported by one certificate. An 
Import or End-User Certificate may cover more than one purchase order 
and more than one item. Where the certificate includes items for which 
more than one license application will be submitted, you must include 
in Block 24, or in an attachment to each license application submitted 
against the certificate, the following certification:

    I (We) certify that the quantities of items shown on this 
license application, based on the Certificate identified in Block 13 
of this license application, when added to the quantities shown on 
all other license applications submitted to BXA based on the same 
Certificate, do not total more than the total quantities shown on 
the above cited Certificate.

    (g) Submission of Import and End-User Certificates. (1) In order to 
determine whether submission to BXA of the requisite certificate is 
required, you must ask the following two questions.
    (i) Does the license application involve the export or reexport of 
a supercomputer as defined in part 742 of this subchapter?
    (ii) Is a PRC End-User Certificate required for the proposed 
transaction?
    (2) If the answer is yes to either question, the original 
certificate must be submitted with the license application to BXA. 
Copies will not be accepted.
    (3) If the answer is no to both of these questions, the original 
certificate must [[Page 25352]] be retained on file by the applicant in 
accordance with the recordkeeping provisions of part 762 of this 
subchapter, and not submitted with the license application.
    (h) Alterations. After an Import or End-User Certificate is issued 
by a foreign government, no corrections, additions, or alterations may 
be made on the Certificate by any person. If you desire to explain any 
information contained on the Certificate, you may attach a signed 
statement to the Certificate.
    (i) Request for Delivery Verification. BXA will on a selective 
basis require Delivery Verification documents for shipments supported 
by Import Certificates. You will be notified if Delivery Verification 
is required at the time of issuance of the license. Please refer to 
Sec. 748.13 of this part for detailed information on these procedures.
    (j) Retention procedures. You must retain on file the original copy 
of any certificate issued in support of a license application submitted 
to BXA, unless the original is submitted with the license application. 
All recordkeeping provisions contained in part 762 of this subchapter 
apply to this requirement, except that reproductions may not be 
substituted for the officially authenticated original in this instance.


Sec. 748.11  Statement by Ultimate Consignee and Purchaser.

    (a) Exceptions to completing a Statement by Ultimate Consignee and 
Purchaser. A Statement by the Ultimate Consignee and/or Purchaser 
involved in a transaction must be completed unless:
    (1) An International Import Certificate, a People's Republic of 
China End-User Certificate, an Indian Import Certificate, or a 
Bulgarian, Czech, Hungarian, Polish, Romanian or Slovak Import 
Certificate is required in support of the license application.
    (2) The applicant is the same person as the ultimate consignee, 
provided the required statements are contained in Block 24 on the 
license application. This exemption does not apply where the applicant 
and consignee are separate entities, such as parent and subsidiary, or 
affiliated or associated firms.
    (b) Submission of the Statement by Ultimate Consignee and 
Purchaser. A copy of the signed Statement by Ultimate Consignee and 
Purchaser must be maintained by the applicant with the ultimate 
consignee retaining the manually-signed original in accordance with the 
recordkeeping provisions of part 762. The copy retained by the 
applicant must be of sufficient quality to ensure all assertions made 
on the statement are legible and that the signatures are sufficiently 
legible to permit identification of the signature as that of the 
signer. A copy of the statement must be submitted with your license 
application if the country of ultimate destination is listed in either 
Country Group D:2, D:3, or D:4 (See Supplement No. 1 to part 740 of 
this subchapter) or the item involved is a supercomputer.
    (c) Form or letter. The ultimate consignee and purchaser must 
complete either a statement on company letterhead in accordance with 
Sec. 748.11(e) of this part or Form BXA-711, Statement by Ultimate 
Consignee and Purchaser. If you elect to complete the statement on 
letterhead and both the ultimate consignee and purchaser are the same 
entity, only one statement is necessary. If the ultimate consignee and 
purchaser are separate entities, separate statements must be prepared 
and signed. If you elect to complete Form BXA-711, only one Form BXA-
711 (containing the signatures of the ultimate consignee and purchaser) 
need be completed. Whether your ultimate consignee and purchaser sign a 
written statement or Form BXA-711, the following constraints apply:
    (1) Responsible officials representing the ultimate consignee must 
sign the statement. ``Responsible official'' is defined as someone with 
personal knowledge of the information included in the statement, and 
authority to bind the ultimate consignee or purchaser for whom they 
sign, and who has the power and authority to control the use and 
disposition of the licensed items.
    (2) The authority to sign the statement may not be delegated to any 
person (agent, employee, or other) whose authority to sign is not 
inherent in his or her official position with the ultimate consignee or 
purchaser for whom he or she signs. The signing official may be located 
in the U.S. or in a foreign country. The official title of the person 
signing the statement must also be included.
    (3) The consignee and/or purchaser must submit information that is 
true and correct to the best of their knowledge and must promptly send 
a new statement to the applicant if changes in the facts or intentions 
contained in their statement(s) occur after the statement(s) have been 
forwarded to the applicant. Once a statement has been signed, no 
corrections, additions, or alterations may be made. If a signed 
statement is incomplete or incorrect in any respect, a new statement 
must be prepared, signed and forwarded to the applicant.
    (d) Instructions on completing Form BXA-711. Instructions on 
completing Form BXA-711 are contained in Supplement No. 2 to part 748. 
The ultimate consignee and purchaser may sign a legible copy of Form 
BXA-711. It is not necessary to require your ultimate consignee and 
purchaser sign an original Form BXA-711, provided all information 
contained on the copy is legible.
    (e) Instructions on completing the statement on letterhead. 
Information in response to each of the following criteria must be 
included in the statement. If any information is unknown, that fact 
should be disclosed in the statement. Preprinted information supplied 
on the statement, including the name, address, or nature of business of 
the ultimate consignee or purchaser appearing on the letterhead or 
order form, will not constitute evidence of either the signer's 
identity, the country of ultimate destination, or end-use of the items 
described in the license application.
    (1) Paragraph 1. One of the following certifications must be 
included depending on whether the statement is proffered in support of 
a single license application or multiple license applications:
    (i) Single. This statement is to be considered part of a license 
application submitted by [name and address of applicant].
    (ii) Multiple. This statement is to be considered a part of every 
license application submitted by [name and address of applicant] until 
one year from the date this statement is signed.
    (2) Paragraph 2. One or more of the following certifications must 
be included:

    Note: If any of the facts related to the following statements 
are unknown, this must be clearly stated.

    (i) The items for which a license application will be filed by 
[name of applicant] will be used by us as capital equipment in the form 
in which received in a manufacturing process in [name of country] and 
will not be reexported or incorporated into an end product.
    (ii) The items for which a license application will be filed by 
[name of applicant] will be processed or incorporated by us into the 
following product(s) [list products] to be manufactured in [name of 
country] for distribution in [list name of country or countries].
    (iii) The items for which a license application will be filed by 
[name of applicant] will be resold by us in the form in which received 
for use or consumption in [name of country].
    (iv) The items for which a license application will be filed by 
[name of [[Page 25353]] applicant] will be reexported by us in the form 
in which received to [name of country or countries].
    (v) The items received from [name of applicant] will be [describe 
use of the items fully].
    (3) Paragraph 3. The following two certifications must be included:
    (i). The nature of our business is [possible choices include; 
broker, distributor, fabricator, manufacturer, wholesaler, retailer, 
value added reseller, original equipment manufacturer, etc.].
    (ii) Our business relationship with [name of applicant] is 
[possible choices include; contractual, franchise, distributor, 
wholesaler, continuing and regular individual business, etc.] and we 
have had this business relationship for [number of years].
    (4) Paragraph 4. The final paragraph must include each of the 
following certifications:
    (i) We certify that all of the facts contained in this statement 
are true and correct to the best of our knowledge and belief and we do 
not know of any additional facts that are inconsistent with the above 
statements. We shall promptly send a replacement statement to [name of 
the applicant] disclosing any change of facts or intentions set forth 
in this statement that occur after this statement has been prepared and 
forwarded to [name of applicant]. We acknowledge that the making of any 
false statement or concealment of any material fact in connection with 
this statement may result in imprisonment or fine, or both, and denial, 
in whole or in part, of participation in U.S. exports or reexports.
    (ii) Except as specifically authorized by the U.S. Export 
Administration Regulations, or by written approval from the Bureau of 
Export Administration, we will not reexport, resell, or otherwise 
dispose of any items approved on a license supported by this statement 
issued to [name of applicant] (1) to any country not approved for 
export as brought to our attention by the U.S. exporter; or (2) to any 
person if there is reason to believe that it will result directly or 
indirectly, in disposition of the items contrary to the representations 
made in this statement or contrary to the U.S. Export Administration 
Regulations.
    (iii) We understand that acceptance of this statement as a support 
document cannot be construed as an authorization by BXA to reexport the 
items in the form in which received even though the ultimate consignee 
and/or purchaser has indicated the intention to reexport, and that 
authorization to reexport is not granted on the basis of information 
provided in the statement, but as a result of a specific request in a 
license application.


Sec. 748.12  Special provisions.

    (a) Grace periods. Whenever the requirement for an Import or End-
User Certificate or Statement by Ultimate Consignee or Purchaser is 
imposed or extended by a change in the regulations, the license 
application need not conform to the new support documentation 
requirements for a period of 45 days after the effective date of the 
notice published in the Federal Register.
    (1) Requirements are usually imposed or extended by virtue of one 
of the following:
    (i) Addition or removal of national security controls over a 
particular item; or
    (ii) Development of an Import Certificate/Delivery Verification or 
End-User Certificate program by a foreign country; or
    (iii) Removal of an item from eligibility under the Special 
Comprehensive License described in part 752 of this subchapter, when 
you hold such a special license and have been exporting the item under 
that license.
    (2) License applications filed during the 45 day grace period must 
be accompanied by any evidence available to you that will support 
representations concerning the ultimate consignee, ultimate 
destination, and end use, such as copies of the order, letters of 
credit, correspondence between you and ultimate consignee, or other 
documents received from the ultimate consignee. You must also identify 
the regulatory change (including its effective date) that justifies 
exercise of the 45 day grace period.

    Note: An Import or End-User Certificate will not be accepted, 
after the stated grace period, for license applications involving 
items that are no longer controlled for national security reasons. 
If an item is removed from national security controls, you must 
obtain a Statement by Ultimate Consignee and Purchaser as described 
in Sec. 748.11 of this part. Likewise, any item newly controlled for 
national security purposes requires support of an Import or End-User 
Certificate as described in Sec. 748.10 of this part after 
expiration of the stated grace period.

    (b) Reexports. If a support document would be required for an 
export, the same document would be required for reexport to Country 
Group D:1 and E:2 (See Supplement No. 1 to part 740 of this 
subchapter).
    (c) Granting of exceptions to the support documentation 
requirement. An exception to obtaining the required support 
documentation will be considered by BXA, however, an exception will not 
be granted contrary to the objectives of the U.S. export control 
program. A request for exception may involve either a single 
transaction, or where the reason necessitating the request is 
continuing in nature, multiple transactions. If satisfied by the 
evidence presented, BXA may waive the support document requirement and 
accept the license application for processing. Favorable consideration 
of a request for exception generally will be given in instances where 
the support document requirement:
    (1) Imposes an undue hardship on you and/or ultimate consignee 
(e.g., refusal by the foreign government to issue an Import or End-User 
Certificate and such refusal constitutes discrimination against you); 
or
    (2) Cannot be complied with (e.g., the items will be held in a 
foreign trade zone or bonded warehouse for subsequent distribution in 
one or more countries); or
    (3) Is not applicable to the transaction (e.g., the items will not 
be imported for consumption into the named country of destination).
    (d) Procedures for requesting an exception. (1) Requests for 
exception must be submitted with the license application to which the 
request relates. Where the request relates to more than one license 
application it should be submitted with the first license application 
and referred to in Block 24 on any subsequent license application. The 
request for exception must be submitted in writing on the applicant's 
letterhead.
    (2) In instances where you are requesting exception from obtaining 
an Import or End-User Certificate, the request must be accompanied by a 
manually-signed original Statement by Ultimate Consignee and Purchaser 
as described in Sec. 748.11 of this part.
    (3) At a minimum, the letter request must include:
    (i) Name and address of ultimate consignee;
    (ii) Name and address of purchaser, if different from ultimate 
consignee;
    (iii) Location of foreign trade zone or bonded warehouse if the 
items will be exported to a foreign trade zone or bonded warehouse;
    (iv) Type of request, i.e., whether for a single transaction or 
multiple transactions;
    (v) Full explanation of the reason(s) for requesting the exception;
    (vi) Nature and duration of the business relationship between you 
and ultimate consignee and purchaser shown on the license 
application; [[Page 25354]] 
    (vii) Whether you have previously obtained and/or submitted to BXA 
an Import or End-User Certificate issued in the name of the ultimate 
consignee and/or purchaser, and a list of the Application Control 
Number(s) to which the certificate(s) applied; and
    (viii) Any other facts to justify granting an exception.
    (4) Action by BXA. (i) Single transaction request. Where a single 
transaction is involved, BXA will act on the request for exception at 
the same time as the license application with which the request is 
submitted. In those instances where the related license application is 
approved, the issuance of the license will serve as an automatic notice 
to the applicant that the exception was approved. If any restrictions 
are placed on granting of the exception, these will appear on the 
approval. If the request for exception is not approved, BXA will advise 
you by letter.
    (ii) Multiple transactions request. Where multiple transactions are 
involved, BXA will advise you by letter of the action taken on the 
exception request. The letter will contain any conditions or 
restrictions that BXA finds necessary to impose (including an exception 
termination date if appropriate). In addition, a written acceptance of 
these conditions or restrictions may be required from the parties to 
the transaction.
    (e) Availability of original. The original certificate or statement 
must be kept on file, and made available for inspection in accordance 
with the provisions of part 762 of this subchapter. To ensure 
compliance with this recordkeeping requirement, BXA will require 
applicants, on a random basis, to submit specific original certificates 
and statements that have been retained on file. Applicants will be 
notified in writing of any such request.


Sec. 748.13  Delivery Verification (DV).

    (a) Scope. (1) BXA may request applicants to obtain verifications 
of delivery on a selective basis. A Delivery Verification Certificate 
(DV) is a document issued by the government of the country of ultimate 
destination after the export has taken place and the items have either 
entered the export jurisdiction of the recipient country or are 
otherwise accounted for by the importer to the issuing government. 
Governments that issue DVs are listed in Supplement No. 3 to part 748.
    (2) If BXA decides to request verification of delivery, the request 
will appear as a condition on the face of the license. If the license 
is sent directly to a party other than the applicant authorized to 
receive the license (e.g., agent, forwarder, broker, etc.), such party 
is responsible for notifying the licensee immediately in writing that a 
DV is required.
    (b) Exception to obtaining Delivery Verification. The DV 
requirement for a particular transaction is automatically canceled if, 
subsequent to the issuance of a license, the item is no longer 
controlled for national security reasons. In this instance, the 
licensee must send a letter to BXA at the address listed in Sec. 748.14 
of this part, stating that the items on the license are no longer 
controlled for national security reasons, and accordingly, the request 
for DV will not be fulfilled by the licensee.
    (c) Procedure for obtaining Delivery Verification. When notified 
that DV is required by BXA, the licensee must transmit to the importer 
a written request for a DV at the time of making each shipment under 
the license (whenever possible, this request should be submitted 
together with the related bill of lading or air waybill). The request 
must include the number of the Import or End-User Certificate for the 
transaction referred to on the license, and notify the importer that 
this same Import or End-User Certificate number should be shown on the 
DV.
    (1) The importer must obtain the DV from the appropriate government 
ministry identified in Supplement No. 3 to part 748, and forward the 
completed DV to the licensee. The DV must cover the items described on 
the license that have been shipped.


    Note: BXA must be able to relate the description provided in the 
DV to the approved license. In order to ensure the same terminology 
is used, the licensee should provide the importer with the 
description as it appears on the license.

    (2) The original copy of the DV must be sent to BXA within 90 days 
after the last shipment has been made against the license. If 
verification of delivery is required for items covered by a license 
against which partial shipments have been made, the licensee shall 
obtain the required DV for each partial shipment, and retain these on 
file until all shipments have been made against the license. Once all 
shipments against the license have been made (or the licensee has 
determined that none will be), the licensee must forward, in one 
package, all applicable DVs to BXA at the address listed in Sec. 748.14 
of this part.
    (3) The documents must be forwarded with a dated letter evidencing 
the license number, the name, title and signature of the authorized 
representative, and one of the following statements:
    (i) The total quantity authorized by license number ______ have 
been exported, and all delivery verification documents are attached.
    (ii) A part of the quantity authorized by license number ______ 
will not be exported. Delivery verification documents covering all 
items exported are attached.
    (iii) No shipment has been made against this license, and none is 
contemplated.
    (d) Inability to obtain Delivery Verification certificates. If a 
licensee is unable to obtain the required DV (within the time frame 
stated above, or at all) from the importer, the licensee must promptly 
notify BXA and, upon request, make available all information and 
records, including correspondence, regarding the attempt to obtain the 
DV.


Sec. 748.14  Mailing address for applications and documentation.

    All applications should be mailed to the following address, unless 
otherwise specified: Bureau of Export Administration, U.S. Department 
of Commerce, P.O. Box 273, Washington, D.C. 20044. If you wish to 
submit your application using an overnight courier, use the following 
address: Bureau of Export Administration, U.S. Department of Commerce, 
14th Street and Pennsylvania Avenue, Room 2705, Washington, D.C. 20044, 
Attn: ``Application Enclosed''. BXA will not accept applications sent 
C.O.D.

Supplement No. 1 to Part 748--BXA-748P, BXA-748P-A; Item Appendix, and 
BXA-748P-B; End-User Appendix Multipurpose Application Instructions

    All information must be legibly typed within the lines for each 
Block or Box.
    Block 1: Contact Person. Enter the name of the person who can 
answer questions concerning the application.
    Block 2: Telephone. Enter the telephone number of the person who 
can answer questions concerning the application.
    Block 3: Facsimile. Enter the facsimile number, if available, of 
the person who can answer questions concerning the application.
    Block 4: Date of Application. Enter the current date.
    Block 5: Type of Application. Mark the appropriate Box with an 
(X). Export. If the items are located within the United States, and 
you wish to export those items, mark the Box labeled ``Export'' with 
an (X). Reexport. If the items have been previously exported (e.g., 
they are no longer located in the United States), mark the Box 
labeled ``Reexport'' with an (X). Classification Request. If you are 
requesting BXA to classify your item against the CCL, check the Box 
labeled ``Classification Request''. Advisory Opinion Request. If you 
are requesting an Advisory Opinion from BXA, check the Box labeled 
``Advisory Opinion Request''. Special Comprehensive License. If you 
are submitting [[Page 25355]] a Special Comprehensive License in 
accordance with procedures described in part 752 of this subchapter, 
mark the Box labeled ``Special Comprehensive License'' with an (X).
    Block 6: Attachments submitted with Application. Review the 
documentation you are required to submit with your application in 
accordance with the provisions of part 748 and Sec. 742.12 of this 
subchapter, and mark all applicable Boxes with an (X).
    Mark the Box ``Foreign Availability'' with an (X) if you are 
submitting an assertion of foreign availability with your license 
application. See part 768 of this subchapter for instructions on the 
submission of a foreign availability submission.
    If you are asking BXA to classify your product, you must mark 
the Box labeled ``Tech. Specs.'', and include with your application 
descriptive literature, brochures, technical specifications or 
papers that provide sufficient technical detail to enable BXA to 
determine the correct classification. Also mark this box if you are 
required to submit technical specifications for a application.
    Block 7: Documents on File with Applicant. Certify that you have 
retained on file all applicable documents as required by the 
provisions of part 748 by placing an (X) in the appropriate Box(es).
    Block 8: Special Comprehensive License. Complete this Block only 
if you are submitting an application for a Special Comprehensive 
License in accordance with part 752 of this subchapter.
    Block 9: Special Purpose. Complete this box for certain items or 
types of transactions only if specifically required in Sec. 748.8 of 
this part.
    Block 10: Resubmission Application Control Number. If your 
original application was returned without action, provide the 
Application Control Number for the previous application.
    Block 11: Replacement License Number. If you have received a 
license for identical items to the same ultimate consignee, but 
would like to make a change to the license as originally approved, 
enter the license number here, and a statement in Block 24 regarding 
what changes you wish to make to the original license.
    Block 12: Items Previously Exported. This Block should be 
completed only if you have checked the ``Reexport'' box in Block 4. 
Enter the license number or License Exception symbol (for exports 
under General Licenses, enter the appropriate General License 
symbol) under which the items were originally exported.
    Block 13: Import/End-User Certificate. Enter the name of the 
country and number of the Import or End User Certificate obtained in 
accordance with provisions of Sec. 748.11 of this subchapter.
    Block 14: Applicant. Enter the applicant's name, street address, 
city, state/country, and postal code. Refer to Sec. 748.4(a) of this 
part for a definition of ``applicant''. If you have checked 
``Export'' in Block 4, you must include your company's Employer 
Identification Number unless you are filing as an individual or as 
an agent on behalf of the exporter. The Employer Identification 
Number is assigned by the Internal Revenue Service for tax 
identification purposes. Accordingly, you should consult your 
company's financial officer or accounting division to obtain this 
number.
    Block 15: Other Party Authorized to Receive License. If you 
would like BXA to transmit the approved license to another party 
designated by you, complete all information in this Block, including 
name, street address, city, country, postal code and telephone 
number. Leave this space blank if the license is to be sent to the 
applicant. Designation of another party to receive the license does 
not alter the responsibilities of the applicant.
    Block 16: Purchaser. Enter the purchaser's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. If you wish to provide a facsimile number instead of a 
telephone number, identify the facsimile number with the letter 
``F'' immediately after the number (e.g., 011-358-0-123456F). Refer 
to Sec. 748.4(b)(3) of this part for a definition of ``purchaser''. 
If the purchaser is also the ultimate consignee, enter the words 
``same as Block 18''.
    Block 17: Intermediate Consignee. Enter the intermediate 
consignee's complete name, street address, city, country, postal 
code and telephone or facsimile number. If you wish to provide a 
facsimile number instead of a telephone number, identify the 
facsimile number with the letter ``F'' immediately after the number 
(e.g., 011-358-0-123456F). Provide a complete street address, P.O. 
Boxes are not acceptable. Refer to Sec. 748.4(b)(4) of this part for 
a definition of ``intermediate consignee''. If this party is 
identical to that listed in Block 16, you may simply type the words 
``Same as Block 16''. If your proposed transaction does not involve 
use of an intermediate consignee, enter ``None''. If your proposed 
transaction involves use of more than one intermediate consignee, 
provide the information in Block 24 for each additional Intermediate 
Consignee.
    Block 18: Ultimate Consignee. Enter the ultimate consignee's 
complete name, street address, city, country, postal code and 
telephone or facsimile number. Provide a complete street address, 
P.O. Boxes are not acceptable. The ultimate consignee is the party 
who will actually receive the material for the end-use designated in 
Block 21. A bank, freight forwarder, forwarding agent, or other 
intermediary may not be identified as the ultimate consignee. Refer 
to Sec. 748.4(b)(1) of this part for the definition of ``ultimate 
consignee''. Government purchasing organizations are the sole 
exception to this requirement. This type of entity may be identified 
as the government entity that is the actual ultimate consignee in 
those instances when the items are to be transferred to the 
government entity that is the actual end-user, provided actual end-
use is clearly identified in Block 21 or additional documentation 
attached to the application.
    If your application is for the reexport of items previously 
exported, enter the new ultimate consignee's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. If you wish to provide a facsimile number instead of a 
telephone number, identify the facsimile number with the letter 
``F'' immediately after the number (e.g., 011-358-0-123456F).
    If your application involves a temporary export or reexport, the 
applicant should be shown as the ultimate consignee in care of a 
person or entity who will have control over the items abroad.
    Block 19: End-User. Complete this Block only if the ultimate 
consignee identified in Block 18 is not the actual end-user. If 
there is more than one end-user, enter the word ``Various'' in this 
Block, and use Form BXA-748P-B to identify each of the end-users. 
Enter each end user's complete name, street address, city, country, 
postal code and telephone or facsimile number. If you wish to 
provide a facsimile number instead of a telephone number, identify 
the facsimile number with the letter ``F'' immediately after the 
number (e.g., 011-358-0-123456F). Provide a complete street address, 
P.O. Boxes are not acceptable.
    Block 20: Original Ultimate Consignee. If your application 
involves the reexport of items previously exported, enter the 
original ultimate consignee's complete name, street address, city, 
country, postal code and telephone or facsimile number. The original 
ultimate consignee is the entity identified in the original 
application for export as the ultimate consignee or the consignee 
currently in possession of the items. If you wish to provide a 
facsimile number instead of a telephone number, identify the 
facsimile number with the letter ``F'' immediately after the number 
(e.g., 011-358-0-123456F). Provide a complete street address, P.O. 
Boxes are not acceptable.
    Block 21: Specific End-Use. Provide a complete and detailed 
description of the end-use intended by the ultimate consignee and/or 
end-user(s). If you are requesting approval of a reexport, provide a 
complete and detailed description of the end-use intended by the new 
ultimate consignee or end-user(s) and indicate any other countries 
for which resale or reexport is requested. If additional space is 
necessary, use Block 21 on Form BXA-748P-A or B.
    Block 22: You must complete each of the sub-blocks contained in 
this Block, If you are submitting a classification request, you do 
not need to complete blocks (d), (e), (f), (g), and (h). Enter ``N/
A'' in these blocks. If you wish to export, reexport or have BXA 
classify more than one item, use Form BXA-748P-A for additional 
items.
    (a) ECCN. Enter the Export Control Classification Number that 
corresponds to the item you wish to export or reexport. If you are 
requesting BXA classify your item, provide a recommended 
classification for the item in this Block.
    (b) CTP. You must complete this Block if you intend to export, 
reexport, or request BXA to classify a digital computer. 
Instructions on calculating the CTP is contained in a Technical Note 
at the end of Category 4 in the CCL. If you are not exporting or 
reexporting a digital computer, insert ``N/A'' in this Block.
    (c) Model Number. Enter the correct model number for each item.
    (d) CCATS Number. If you have received a classification from 
BXA, provide the CCATS number shown on the classification issued by 
BXA. If not, enter ``N/A''. [[Page 25356]] 
    (e) Quantity. Give the quantity to be exported or reexported, as 
in terms of the ``Units'' identified in the Export Control 
Classification Number entered in Block 21(a) of the item. If the 
``Unit'' for an item is ``$value,'' enter the quantity in units 
commonly used in the trade.
    (f) Units. The ``Unit'' paragraph within each Export Control 
Classification Number will list a specific ``Unit'' for those items 
controlled by the entry. The ``Unit'' must be entered on all license 
applications submitted to BXA. If an item is licensed in terms of 
``Sec. value'', the unit of quantity commonly used in trade must 
also be shown on the license application. If the unit for your 
particular item is shown as ``N/A'' in the appropriate entry on the 
CCL, enter ``N/A'' in this Block.
    (g) Unit Price. Provide the fair market value of the items you 
wish to export or reexport. Round all prices to the nearest whole 
dollar amount. Give the exact unit price only if the value is less 
than $0.50. If normal trade practices make it impractical to 
establish a firm contract price, state in Box 24 the precise terms 
upon which the price is to be ascertained and from which the 
contract price may be objectively determined.
    (h) Total Price. Provide the total price of the item(s) 
described in Block 22(j).
    (i) Manufacturer. Provide the name only of the manufacturer, if 
known, for each of the items you wish to export, reexport, or have 
BXA classify, if different from the applicant.
    (j) Manufacturer's Description. Provide a description of the 
item(s) you wish to export, reexport, or have BXA classify. Provide 
details when necessary to identify the specific item(s), include all 
characteristics or parameters shown in the applicable ECCN using 
measurements identified in the ECCN (e.g., basic ingredients, 
composition, electrical parameters, size, gauge, grade, horsepower, 
etc.) These characteristics must be identified for the items in the 
proposed transaction that may be different than the characteristics 
described in promotional brochure(s).
    Block 23: Total Application Dollar Value. Enter the total value 
of all items contained on the application in U.S. Dollars. The use 
of other currencies is not acceptable.
    Block 24: Additional Information. Enter additional data 
pertinent to the transaction as required in the EAR. Include special 
certifications, names of parties in interest not disclosed 
elsewhere, explanation of documents attached, etc. Do not include 
information concerning Block 22 in this space.
    If your application represents a transaction previously denied, 
you must provide the Application Control Number for the original 
application.
    If you are asking BXA to classify your product, provide an 
explanation why you believe the Export Control Classification Number 
entered in block 22(a) is appropriate. This explanation must contain 
an analysis of the item in terms of the technical control parameters 
specified in the appropriate ECCN. If you do not identify a 
recommended classification in block 22(a), you must state the reason 
you cannot determine the appropriate classification, identifying any 
ambiguities or deficiencies in the regulations that precluded you 
from determining the correct classification.
    If additional space is necessary, use Block 24 on Form BXA-748P-
A or B.
    Block 25: You, as the applicant or duly authorized agent of the 
applicant, must manually sign the application. If you are an agent 
of the applicant, in addition to providing your name and title in 
this Block you must enter your company's name in Block 24. Note: 
rubber-stamped or electronic signatures are not acceptable. Type 
both your name and title in the spaces provided.

Supplement No. 2 to Part 748 BXA-711, Statement by Ultimate 
Consignee and Purchaser Instructions

    All information must be typed or legibly printed in each 
appropriate Block or Box.
    Block 1: Ultimate Consignee. The Ultimate Consignee must be the 
person abroad who is actually to receive the material for the 
disposition stated in Block 2. A bank, freight forwarder, forwarding 
agent, or other intermediary is not acceptable as the Ultimate 
Consignee.
    Block 2: Disposition or Use of Items by Ultimate Consignee named 
in Block 1. Place an (X) in ``A.,'' ``B.,'' ``C.,'' ``D.,'' and 
``E.,'' as appropriate, and fill in the required information.
    Block 3: Nature of Business of Ultimate Consignee named in Block 
1. Complete both ``A'' and ``B''.
    Possible choices for ``A'' include: broker, distributor, 
fabricator, manufacturer, wholesaler, retailer, value added 
reseller, original equipment manufacturer, etc.
    Possible choices for ``B'' include: contractual, franchise, 
distributor, wholesaler, continuing and regular individual business, 
etc.
    Block 4: Additional Information. Provide any other information 
not appearing elsewhere on the form such as other parties to the 
transaction, and any other material facts which may be of value in 
considering license applications supported by this statement.
    Block 5: Assistance in Preparing Statement. Name all persons, 
other than employees of the ultimate consignee or purchaser, who 
assisted in the preparation of this form.
    Block 6: Ultimate Consignee. Enter the requested information and 
sign the statement in ink. (For a definition of ultimate consignee, 
see Sec. 748.4(a)(5) of this subchapter.)
    Block 7: Purchaser. This form must be signed in ink by the 
Purchaser, if the Purchaser is not the same as the Ultimate 
Consignee identified in Block 1. (For a definition of purchaser, see 
Sec. 748.4(a)(3) of this subchapter.)
    Block 8: Certification for U.S. Exporter. This Block must be 
completed to certify that any correction, addition, or alteration on 
this form was made prior to the signing by the Ultimate Consignee in 
Block 6 and Purchaser in Block 7.

Supplement No. 3 to Part 748--Authorities Administering Import 
Certificate/Delivery Verification (IC/DV) and end use Certificate 
Systems in Foreign Countries\1\

--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Country                                            IC/DV authorities                                 System administered          
--------------------------------------------------------------------------------------------------------------------------------------------------------
Argentina.........................................  Secretaria Ejecutiva de la Comision Nacional de Control de  IC/DV.                                  
                                                     Exportaciones Sensitivas y Material Belico Balcarce 362--                                          
                                                     ler. piso--Capital Federal--CP 1064 Buenos Aires. Tel.                                             
                                                     334-0738, Fax 331-1618.                                                                            
Australia.........................................  Director, Technology Transfer and Analysis, Industry        IC/DV.                                  
                                                     Policy and Operations Division, Department of Defense,                                             
                                                     Russell Office, Canberra, A.C.T. 2600.                                                             
Austria...........................................  Bundesministerium fur Handel Gewerbe und Industrie          IC/DV.                                  
                                                     Landstr. Haupstr. 55-57, Vienna 1031.                                                              
Belgium...........................................  Ministere Des Affaires Economiques Office Central des       IC/DV.                                  
                                                     Contingents et Licences 24-26 Rue De Mot, Bruxelles-1040.                                          
Bulgaria..........................................  Ministry of Trade 12 Al. Batenberg 1000 Sofia.............  IC/DV.                                  
China, People's Republic of.......................  Technology Import and Export, Department MOFERT, No. 2      PRC End-User Certificate.               
                                                     Dong Chang An Street, Beijing, Telephone: 553031, Telex:                                           
                                                     22478 MFERTCN.                                                                                     
Czech Republic....................................  Federal Ministry of Foreign Trade, Head of Licensing        IC/DV.                                  
                                                     Politickych, Veznu 20 112 49 Praha 1.                                                              
Denmark...........................................  Handelsministeriets, Licenskontor, Kampmannsgade 1, DK      IC/DV.                                  
                                                     1604, Copenhagen V.                                                                                
                                                    IC's also issued by Danmarks Nationalbank, Holmens Kanal    DV.                                     
                                                     17, Copenhagen K Custom-houses.                                                                    
[[Page 25357]]
                                                                                                                                                        
Finland...........................................  Hensingin Piiritullikamari, Kanavakatu 6 (or P.O. Box       IC/DV.                                  
                                                     168), 00161 Helsinki.                                                                              
France............................................  Ministere de l'Economie et des, Finances Direction          IC/DV.                                  
                                                     Generale des, Douanes et Droita Indirects, Division des                                            
                                                     Affaires Juridiques et Contentieuses 8, Rue de la Tour                                             
                                                     des Dames, Bureau D/3, 75436, Paris Codex 09.                                                      
Germany...........................................  Bundesamt fur gewerbliche, Wirtschaft Frankfurter Strasse,  IC/DV.                                  
                                                     29-31 65760 Eschborn.                                                                              
Greece............................................  Banque de Greece, Direction des Transactions Commerciales   IC/DV.                                  
                                                     avec l'Etranger, Athens.                                                                           
Hong Kong.........................................  Trade Department, Ocean Centre, Canton Road, Tsimshatsui,   IC/DV.                                  
                                                     Kowloon,.                                                                                          
Hungary...........................................  Ministry of International Economic Relations Export         IC/DV.                                  
                                                     Control Office, 1054 Budapest P.O. Box 728, H-1365, Hold                                           
                                                     Str. 17.                                                                                           
India.............................................  Deputy Director General of Foreign Trade Udyog Bhawan,      Indian IC.                              
                                                     Maulana Azad Road, New Delhi 11011: For small scale                                                
                                                     industries and entities, and those not elsewhere                                                   
                                                     specified.                                                                                         
                                                    Directorate General of Technical Development, Udyog         Indian IC.                              
                                                     Bhawan, Maulana Azad Road, New Delhi 11011: For the                                                
                                                     ``organized'' sector, except for computers and related                                             
                                                     equipment.                                                                                         
                                                    Defense Research and Development Organization, Room No.     Indian IC.                              
                                                     224, ``B'' Wing Sena Bhawan, New Delhi 110011: For                                                 
                                                     Defense organizations.                                                                             
                                                    Department of Electronics, Lok Nayak Bhawan, New Delhi      Indian IC.                              
                                                     110003: For computers and related electronic items.                                                
                                                    Assistant Director, Embassy of India, Commerce Wing, 2536   Indian IC.                              
                                                     Massachusetts Ave. NW, Washington D.C. 20008--: For any                                            
                                                     of the above.                                                                                      
Ireland, Republic of..............................  Department of Industry, Trade, Commerce and Tourism,        IC/DV.                                  
                                                     Frederick House, South Frederick Street, Dublin 2.                                                 
Italy.............................................  Ministero del Commercio con l'Estero Direzione Generale     IC/DV.                                  
                                                     delle Importazioni e delle Esportazioni, Div. III, Rome,                                           
                                                     Dogana Italiana (of the town import where takes place).                                            
Japan.............................................  Ministered of International Trade and Industry in:          IC.                                     
                                                     Fukuoka, Hiroshima, Kanmon (Kitakyushu-shi), Kobe,                                                 
                                                     Nagoya, Osaka, Sapporo, Sendai, Shikoku (Takamatsu-shi),                                           
                                                     Shimizu, Tokyo, and Yokohama.                                                                      
                                                    Japanese Customs Offices..................................  DV.                                     
Korea, Republic of................................  Trade Administration Division, Trade Bureau Ministry of     IC.                                     
                                                     Trade and Industry Jungang-Dong, Kyonggi-Do, Building 3,                                           
                                                     Kwachon.                                                                                           
                                                    Republic of Korea Customs House...........................  DV.                                     
Liechtenstein.....................................  Swiss Federal Office for Foreign Economic Affairs, Import   IC/DV.                                  
                                                     and Export Division Zieglerstrasse 30, CH-3003 Bern.                                               
Luxembourg........................................  Office des Licences, Avenue de la Liberte, 10.............  IC/DV.                                  
Netherlands.......................................  Centrale Dienst voor In-en Uitvoer, Engelse Kamp 2,         IC/DV.                                  
                                                     Groningen.                                                                                         
New Zealand.......................................  Comptroller for Customs, P.O. Box 2218, Wellington........  IC/DV.                                  
Norway............................................  Handelsdepartmentet, Direktoratet for Eksport-og-           IC/DV.                                  
                                                     Importregulering, Fr. Nansens plass 5, Oslo.                                                       
Pakistan..........................................  Chief Controller of Imports and Exports, 5, Civic Center,   IC.                                     
                                                     Islamabad.                                                                                         
                                                    Joint Science Advisor, Ministry of Science and Technology,  DV.                                     
                                                     Secretariat, Block `S', Islamabad.                                                                 
Poland............................................  Ministry of Foreign Economic Relations Department of        IC/DV.                                  
                                                     Commodities and Services, Plac Trzech Krzyzy 5, Room 358,                                          
                                                     00-507 Warsaw.                                                                                     
Portugal..........................................  Reparticao do Comercio Externo, Direccao-Geral do           IC/DV.                                  
                                                     Comercio, Secretaria de Estado do Comercio, Ministerio da                                          
                                                     Economia, Lisbon.                                                                                  
Romania...........................................  National Agency for Control of Strategic Exports and        IC/DV.                                  
                                                     Prohibition of Chemical Weapons, 13, Calea 13 Septembrie                                           
                                                     Casa (or P.O. Box 5-10) Republicii, Gate A 1, Bucharest,                                           
                                                     Sector 5, Phone: 401-311-2083, Fax: 401-311-1265.                                                  
Singapore.........................................  Controller of Imports and Exports, Trade Development        IC/DV.                                  
                                                     Board, World Trade Centre, 1 Maritime Square, Telok                                                
                                                     Blangah Road,.                                                                                     
Slovakia..........................................  Ministry of Foreign Affairs, Licensing-Registration         IC                                      
                                                     Department, Spitalska 8, 813 15 Bratislava.                                                        
Spain.............................................  Secretary of State for Commerce, Paseo la Cistellana 162,   IC/DV.                                  
                                                     Madrid 28046.                                                                                      
Sweden............................................  The Association of Swedish Chambers of Commerce & Industry  IC/DV.                                  
                                                     P.O. Box 16050, S-103 22 Stockholm Office: Vastra                                                  
                                                     Tradgardsgatan 9.                                                                                  
Switzerland.......................................  Swiss Federal Office for Foreign Economic Affairs, Import   IC/DV.                                  
                                                     and Export Division, Zieglerstrasse, 30 CH-3003 Bern.                                              
[[Page 25358]]
                                                                                                                                                        
Taiwan............................................  Board of Foreign Trade Ministry of Economic Affairs, 1 Hu-  IC/DV.                                  
                                                     Kou Street, Taipei.                                                                                
                                                    Science-based Industrial Park Administration No. 2 Hsin                                             
                                                     Ann Road, Hsinchu.                                                                                 
                                                    Export Processing Zone Administration, 600 Chiachang Road                                           
                                                     Nantz, Kaohsiung.                                                                                  
Turkey............................................  Ministry of Commerce, Department of Foreign Commerce,       IC.                                     
                                                     Ankara.                                                                                            
                                                    Head Customs Office at the point of entry.................  DV.                                     
United Kingdom....................................  Department of Trade and Industry, Export Licensing Branch,  IC.                                     
                                                     Millbank Tower Millbank, London, SW1P 4QU.                                                         
                                                    H.M. Customs and Excise, King's Beam House, Mark Lane,      DV.                                     
                                                     London, E.C. 3.                                                                                    
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\Samples of Import Certificates and Delivery Verifications issued by each of these countries may be viewed at any of the offices identified in Sec.   
  748.2(a) of this part. Copies are not available.                                                                                                      

Supplement No. 4--U.S. Import Certificate and Delivery Verification 
Procedure--[Reserved]

PART 750--APPLICATION PROCESSING, ISSUANCE AND DENIAL

Sec.
750.1  Scope.
750.2  Processing of Classification and Advisory Opinion requests.
750.3  Review of license applications by BXA and other government 
agencies and departments.
750.4  Procedures for processing license applications.
750.5  Status on pending applications.
750.6  Denial of license applications.
750.7  Issuance of licenses.
750.8  Revocation or suspension of licenses.
750.9  Duplicates of licenses.
750.10  Transfer of licenses for exports.
750.11  Shipping tolerances.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 750.1  Scope.

    This part 750 describes the licensing process used by the Bureau of 
Export Administration (BXA) to review your application for a license, 
including processing times, denials, revocations, issuance, duplicates, 
transfers, and shipping tolerances on approved licenses. The processing 
times for Classification and Advisory Opinion requests are also 
provided along with directions on obtaining status on your pending 
application.


Sec. 750.2  Processing of classification and advisory opinion requests.

    (a) Classification requests. All written inquiries submitted to BXA 
requesting the classification of a particular item on the Commerce 
Control List (CCL) will be answered within 14 days after receipt. All 
responses will inform the person of the proper classification (e.g., 
whether or not the item is subject to the Export Administration 
Regulations (EAR) and, if applicable, the appropriate Export Control 
Classification Number [ECCN]).
    (b) Advisory opinion requests. All written inquiries submitted to 
BXA requesting the applicability of license requirements to a proposed 
transaction or series of transactions (e.g., a particular item to a 
specific destination), will be answered within 30 days after receipt.


Sec. 750.3  Review of license applications by BXA and other government 
agencies and departments.

    (a) Review by BXA. In reviewing specific license applications, BXA 
will conduct a complete analysis of all documentation and other forms 
of information submitted along with the license application. In 
addition to reviewing the item and end-use, BXA will consider the 
reliability of each party to the transaction and review any available 
intelligence information. To the maximum extent possible, BXA will make 
licensing decisions without referral of license applications to other 
agencies, however, BXA may consult with other U.S. departments and 
agencies regarding any license application.
    (b) Review by advisory agencies. (1) The Departments of State, 
Defense, Energy, and the Arms Control and Disarmament Agency have the 
authority to review all categories of license application each agency 
or department specifies to BXA. These agencies and departments will be 
referred to as ``advisory agencies'' for the purposes of this section. 
Though advisory agencies have the authority to review any license 
application, they may determine that certain types of license 
applications need not be referred. In these instances, the advisory 
agency will provide BXA with a Delegation of Authority to process those 
license applications without review by that particular advisory agency.
    (2) Advisory agencies are concerned with license applications 
involving items controlled for missile technology, nuclear non-
proliferation, and chemical and biological weapons proliferation 
reasons or destined for countries and/or end uses of concern. In 
addition the following advisory agencies are generally concerned with 
reviewing license applications, as follows:
    (i) The Department of State is concerned primarily with license 
applications involving items controlled for regional stability, anti-
terrorism, crime control reasons, and sanctions;
    (ii) The Department of Defense is concerned primarily with license 
applications involving items controlled for national security and 
regional stability reasons; and
    (iii) The Department of Energy is concerned primarily with license 
applications involving items controlled for nuclear non-proliferation 
reasons.


Sec. 750.4  Procedures for processing license applications.

    (a) Overview.
    (1) All license applications will be resolved or referred to the 
President no later than 90 calendar days from the date of BXA's 
registration of the license application. Processing times for the 
purposes of this section are defined in calendar days. The procedures 
and time limits described in this chapter apply to all license 
applications received on or after [EFFECTIVE DATE OF THE FINAL RULE]. 
The procedures and time limits in effect prior to [EFFECTIVE DATE OF 
THE FINAL RULE] will apply to license applications received prior to 
[EFFECTIVE DATE OF THE FINAL RULE].
    (2) Incomplete license applications will not be registered. BXA 
will attempt to contact the applicant to correct the deficiencies, 
however, if BXA is unable to contact the applicant, the license 
[[Page 25359]] application will be returned without being registered. 
The specific deficiencies requiring return will be enumerated in a 
notice accompanying the returned license application. If a license 
application is registered, but BXA is unable to correct deficiencies 
crucial to processing the license application, it will be returned 
without action. The notice will identify the deficiencies and the 
necessary action to correct the deficiencies. If you decide to resubmit 
the license application, it will be treated as a new license 
application when calculating license processing time frames.
    (b) Exceptions to the 90 day license processing. The only license 
applications not subject to this 90 day license processing time limit 
are those involving:
    (1) The Special Comprehensive License;
    (2) Items controlled for short supply reasons; or
    (3) Items and destinations where the existence of a pre-existing 
contract is a prerequisite to approval.
    (c) Actions not included in processing time calculations. The 
following actions will not be counted in the time period calculations 
described in paragraphs (a) and (b) of this section for the processing 
of license applications:
    (1) Agreement of the applicant. (i) When the applicant agrees to 
the delay. Applicants may be requested by BXA to provide additional 
information in support of their license application or respond to 
questions arising during the processing of their license application.
    (ii) In situations where BXA has provided the applicant with an 
intent to deny letter described in Sec. 750.6 of this part. Processing 
times may be suspended in order to negotiate modifications to a license 
application and obtain agreement to such modifications from the foreign 
parties to the license application.
    (2) Pre-license checks. If a pre-license check, to establish the 
identity and reliability of the recipient of the controlled items, is 
conducted through government channels, provided that:
    (i) The need for such pre-license check is established by the 
Secretary, or by another advisory agency, if the request for a pre-
license check is made by such advisory agency;
    (ii) The pre-license check is requested within five days of the 
determination that it is necessary; and
    (iii) The analysis resulting from the pre-license check is 
completed within five days.
    (3) Government-to-Government assurances. Requests for government-
to-government assurances of suitable end-use of items approved for 
export or reexport when failure to obtain such assurances would result 
in rejection of the license application, provided that:
    (i) The request for such assurances is sent to the Secretary of 
State within five days of the determination that the assurances are 
required;
    (ii) The Secretary of State initiates the request of the relevant 
government within 10 days thereafter; and
    (iii) The license is issued within five days of the Secretary's 
receipt of the requested assurances.
    (4) Multilateral reviews. Multilateral review of a license 
application if such review is required by the relevant multilateral 
regime.
    (5) Congressional notification. License applications requiring 
congressional notification in accordance with section 6(j) of the 
Export Administration Act, as amended (EAA). Under Section 6(j) of the 
EAA, the Secretaries of Commerce and State are required to notify 
appropriate Committees of the Congress 30 days prior to issuing a 
license to any country designated by the Secretary of State as being 
terrorist supporting for any items that could make a significant 
contribution to the military potential of such countries, or could 
enhance the ability of such countries to support acts of international 
terrorism. Accordingly, the issuance of any license subject to this 
requirement will be delayed for 30 days.
    (i) Designated countries. The following countries have been 
designated by the Secretary of State as terrorist-supporting countries: 
Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (ii) Items subject to notification requirement. License 
applications involving the export or reexport of the following items to 
the military, police, intelligence or other sensitive end-users are 
subject to this notification requirement:
    (A) All items controlled for national security reasons, except 
digital computers with a Composite Theoretical Performance (CTP) less 
than 500 Mtops.
    (B) All items controlled for chemical and biological weapons 
proliferation reasons.
    (C) All items controlled for missile technology reasons.
    (D) All items controlled for nuclear non-proliferation reasons.
    (E) All items controlled by the CCL entries ending with number 18.
    (iii) Additional notifications. The Secretaries of Commerce and 
State must also notify the appropriate Congressional committees 30 days 
before a license is issued for the export or reexport of any item 
controlled on the CCL to a designated country if the Secretary of State 
determines that the export or reexport ``could make a significant 
contribution to the military potential of such country, including its 
military logistics capability, or could enhance the ability of such 
country to support acts of international terrorism.''
    (d) Initial processing. Within nine days of license application 
registration, BXA will, as appropriate:
    (1) Contact the applicant if additional information is required, or 
if the license application is improperly completed or required support 
documents are missing, to request corrected information;
    (2) Assure the stated classification on the license application is 
correct;
    (3) Return the license application if a license is not required; or
    (4) Refer the license application electronically along with all 
necessary recommendations and analysis concurrently to other agencies 
or departments. Any relevant information not contained in the 
electronic file will be simultaneously forwarded in paper copy. If 
referral to another advisory agency is not required, BXA will either 
approve the license application or notify the applicant of the intent 
to deny the license application.
    (e) Review by advisory agencies and/or interagency groups. (1) 
Within thirty days of receipt of a referral, an advisory agency will 
provide BXA with a recommendation either to approve or deny the license 
application. As appropriate, such a recommendation may be with the 
benefit of consultation and discussions in interagency groups 
established to provide expertise and coordinate interagency 
consultation. These interagency groups consist of:
    (i) The Missile Technology Export Control Group (MTEC). The MTEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for missile technology reasons. The MTEC 
also reviews license applications involving items not controlled for 
missile technology (MT) reasons, but destined for a country and/or end-
use/end-user of concern.
    (ii) The SubGroup on Nuclear Export Coordination (SNEC). The SNEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for nuclear non-proliferation reasons. The 
SNEC also reviews license applications involving items not controlled 
for nuclear non-proliferation (NP) reasons, but destined for a country 
and/or end use/end-user of concern.
    (iii) The Shield. The Shield, chaired by the Department of State, 
reviews license applications involving items [[Page 25360]] controlled 
for chemical and biological weapons reasons. The Shield also reviews 
license applications involving items not controlled for chemical and 
biological weapons (CBW) reasons, but destined for a country and/or 
end-use/end-user of concern.
    (2) If an advisory agency requires additional information that is 
not contained in the electronic referral file or paper copies, the 
request will be forwarded promptly to BXA. BXA will in turn contact 
you.
    (f) Recommendations by advisory agencies. Advisory agencies 
recommending denial of a license application must provide a statement 
of reasons, consistent with the provisions of the Act, and cite both 
the statutory and the regulatory basis for the recommendation to deny. 
An advisory agency that fails to provide a recommendation within thirty 
days with a statement of reasons supported by the statutory and 
regulatory basis shall be deemed to have no objection to the final 
decision of BXA.
    (g) Interagency dispute resolution and escalation procedures--(1) 
Escalation to the Operating Committee (OC). (i) In any instance where 
the reviewing agencies are not in agreement on final disposition of a 
license application, it will be escalated to the OC for resolution. The 
Chair of the OC will consider the recommendations of the reviewing 
agencies and inform each agency of the Chair's decision on the license 
application within 14 days after the deadline for receiving agency 
recommendations.
    (ii) If any advisory agency disagrees with the OC Chair's decision, 
the advisory agency may escalate the decision to the Chair of the 
Advisory Committee on Export Policy for resolution. If such a request 
for escalation is not made within five days of the decision of the OC 
Chair, his or her decision is then final.
    (2) Escalation to the Advisory Committee on Export Policy (ACEP). 
Requests for escalation to the ACEP must be in writing from an official 
appointed by the President, with the advice and consent of the Senate, 
and cite both the statutory and the regulatory basis for the request. 
The ACEP will review all relevant information and recommendations. The 
Chair of the ACEP will inform the reviewing agencies of the majority 
decision of the ACEP within 11 days from the date of receipt of the 
escalation request. Within five days of the decision, any dissenting 
advisory agency may appeal in writing the ACEP's decision to the 
Secretary of Commerce in the Secretary's capacity as the Chair of the 
Export Administration Review Board. The appeal must be made by the head 
of the advisory agency and cite both the statutory and the regulatory 
basis for the appeal. Within the same period of time, the Secretary may 
initiate a meeting on his or her own initiative to consider a license 
application. In the absence of a timely appeal, the decision of the 
ACEP is then final.
    (3) Escalation to the Export Administration Review Board (EARB). 
The EARB will review all relevant information and recommendations, and 
such other export control matters as may be appropriate. The Secretary 
will inform the reviewing departments and agencies of the majority 
decision of the EARB decision within 11 days from the date of receipt 
of the appeal. Within five days of the decision, any advisory agency 
dissenting from the decision of the EARB may appeal the decision to the 
President. The appeal must be in writing from the head of the 
dissenting advisory agency. In the absence of a timely appeal, the 
decision of the EARB is then final.


Sec. 750.5  Status of pending applications.

    (a) Information available on pending application. Depending on the 
type of application you have submitted you may contact BXA for status 
of your application. For Classification and Advisory Opinion requests, 
telephone (202) 482-4905 or send a fax to (202) 219-9179. For license 
applications, telephone BXA's System for Tracking Export License 
Applications (``STELA'') at (202) 482-2752. STELA is an automated voice 
response system, that upon request via any standard touch-tone 
telephone will provide you with up to the minute status on any license 
application pending with BXA. Requests for status may be made only by 
the applicant or the applicant's agent.
    (b) STELA's hours. STELA is operational Monday through Friday from 
7:15am to 11:15pm and on Saturday from 8:00am to 4:00pm, Eastern 
Standard Time. If you have any difficulty accessing STELA, contact 
during normal business hours, one of BXA's offices listed in Sec. 748.2 
of this subchapter.
    (c) Procedures to access information on STELA. Once you dial STELA 
you will be instructed to enter your Application Control Number using 
your push button telephone keys. Enter the number ``5'' on your 
telephone for Application Control Numbers beginning with the letter 
``Z''. Following this number, enter in the remaining six digits. After 
you enter the Application Control Number, STELA will provide you with 
the current status of your license application.


Sec. 750.6  Denial of license applications.

    (a) Intent to deny notification. If BXA intends to deny your 
license application, BXA will notify you in writing within 5 days of 
the decision. The notification will include:
    (1) The intent to deny decision;
    (2) The statutory and regulatory basis for the denial;
    (3) To the extent consistent with the national security and foreign 
policy of the United States, the specific considerations that led to 
the determination to deny the license application;
    (4) What, if any, modifications or restrictions to the license 
application would allow BXA to reconsider the license application;
    (5) The name of the BXA representative in a position to discuss the 
issues with the applicant; and
    (6) The availability of appeal procedures.
    (b) Response to intent to deny notification. You will be allowed 20 
days from the date of the notification to respond to the determination 
before the license application is denied. If you respond to the 
notification, BXA will advise you if, as a result of your response, the 
determination to deny has been changed. Unless you are so advised by 
the 45th day after the date of the notification, the denial will become 
final, without further notice. You will then have 45 days from the date 
of final denial to exercise the right to appeal under part 756 of this 
subchapter.


Sec. 750.7  Issuance of licenses.

    (a) Scope. A license authorizes only a specific transaction, or 
series of transactions, as described in the license application and any 
supporting documents. A license application may be approved in whole or 
in part, or further limited by conditions or other restrictions 
appearing on the license itself or in the EAR. When a license 
application is approved by the BXA, a license is issued as described in 
paragraph (b) of this section.
    (b) Issuance of a license. After a license application is approved, 
a computer generated license is issued by the Department of Commerce 
bearing the license number and a validation date. Where appropriate, 
the license will also show an expiration date. Where necessary, 
attachments to a license will also be validated with the Department of 
Commerce seal and the date of validation. Exporters must use the 
complete license number when [[Page 25361]] preparing a Shipper's 
Export Declaration (SED) and other export control documents, and in 
communicating with the Department of Commerce concerning the license. 
The following changes do not require submission of a ``Replacement'' 
license or any other notification to BXA (If you wish to make any 
change not identified below, you will need to submit a ``Replacement'' 
license in accordance with the instructions contained in Supplement No. 
1 to part 748):
    (1) Decrease in unit price or total value;
    (2) Increase in price or quantity if permitted under the shipping 
tolerances in Sec. 750.11 of this subchapter;
    (3) Increase in price that can be justified on the basis of changes 
in point of delivery, port of export, or as a result of transportation 
cost, drayage, port charges, warehousing, etc.;
    (4) Establishment of unit or total price in conformance with a 
``price statement'' on a license that permits price to be based on the 
market price at a specified date plus an exporter's mark-up, or like 
basis;
    (5) Change in intermediate consignee if the new intermediate 
consignee is located in the country of ultimate destination as shown on 
the license, except a change in, or addition of, an intermediate 
consignee involving a consolidated shipment;
    (6) Change in continuity of shipment by unloading from carrier at a 
country listed in Country Group B (see Supplement No. 1 to part 740 of 
this subchapter) port not in the country of ultimate destination, 
without the designation of an intermediate consignee on the shipping 
documents and license, provided:
    (i) The purpose is to transfer the shipment to another vessel, 
barge, or vehicle, solely for onforwarding to the country of 
destination shown on the shipping documents and the license;
    (ii) The shipment is moving on a through bill of lading;
    (iii) The carrier is not registered in, owned or controlled by, or 
under charter or lease to a country in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of this subchapter), or a national of any 
of these countries;
    (iv) The carrier retains custody of the shipment until it is 
delivered to the ultimate consignee; and
    (v) The original ocean bill of lading first issued at the port of 
export is delivered with the shipment to the ultimate consignee;
    (7) Change in address of purchaser or ultimate consignee if the new 
address is located within the same country shown on the license;
    (8) Change in ECCN, unit of quantity, unit price, or wording of the 
item description (where necessary only for the purpose of conforming to 
an official revision in the CCL). This does not cover an actual change 
in the item to be shipped, or an increase in the price or quantity.
    (c) Responsibility of the licensee. If a license is issued to you, 
you become the licensee. The licensee will be held accountable for use 
of the license, whether as a principal (exporting for your own account) 
or as an agent (including an agent acting for the account of a foreign 
principal who is not subject to the jurisdiction of the United States). 
You, as the licensee, assume responsibility for effecting the export or 
reexport, for proper use of the license, and for due performance of all 
of the license's terms and conditions. The obligations arising under 
the provisions of the EAA and the EAR are the same whether the license 
application is submitted and issued in writing or electronically.
    (d) Prohibited use of a license. No one convicted of a violation of 
one of the statutes specified in section 11(h) of the EAA, at the 
discretion of the Secretary of Commerce, is eligible to use any license 
for a period up to 10 years from the date of the conviction. (See 
Sec. 766.25 of this subchapter)
    (e) Quantity of commodities authorized. Unlike software and 
technology, commodities will be approved with a quantity or dollar 
value limit. The ``Unit'' paragraph within each CCL commodity entry 
will list a specific ``Unit'' for those commodities controlled by that 
entry. Any license resulting from a license application to export or 
reexport commodities will be licensed in terms of the specified 
``Unit''. If a commodity is licensed in terms of ``Sec. value'', the 
unit of quantity commonly used in trade may also be shown on the 
license. Though this unit may be shown on the approved license, the 
quantity of commodities authorized is limited entirely by the total 
dollar value shown on the approved license.
    (f) License validity period. Licenses involving the export or 
reexport of items generally have a 24 month validity period, unless a 
different validity period has been requested and specifically approved 
by BXA. Exceptions from the 24 month validity period include, license 
applications reviewed and approved as an ``emergency'' (See 
Sec. 748.5(f) of this subchapter), or license applications for items 
controlled for short supply reasons. Emergency licenses are limited to 
a one month validity period and licenses for items controlled for short 
supply reasons are limited to a 12 month validity period. Where 
appropriate, the expiration date will be clearly stated on the face of 
the license. If the expiration date falls on a legal holiday (Federal 
or State), the validity period is automatically extended to midnight of 
the first day of business following the expiration date. (See part 752 
of this subchapter for validity periods for Special Comprehensive 
Licenses.)
    (1) Extended validity period. Validity periods in excess of 24 
months generally will not be granted. BXA will consider granting a 
validity period exceeding 24 months when extenuating circumstances 
warrant, however, no changes will be approved related to any other 
particular (e.g., parties to the transaction, countries of ultimate 
destination, etc.). For example, an extended validity period will 
generally be granted where the transaction is related to a multi-year 
project, when production lead time will not permit export or reexport 
during the original validity period of the license, when an unforeseen 
emergency prevents shipment within the 24-month validity of the 
license, or for other similar circumstances. A continuing requirement 
to supply spare or replacement parts will not normally justify an 
extended validity period. Licenses issued in accordance with emergency 
clearance provisions contained in Sec. 748.5(f) of this subchapter will 
not be extended.
    (2) Request for extension. (i) The applicant must submit a written 
request for the extension of the validity period of a previously 
approved license. The subject of the letter must be titled: ``Request 
for Validity Period Extension'' and contain the following information:
    (A) The name, address, and telephone number of the requestor;
    (B) A copy of the original license, with the license number, 
validation date, and current expiration date legible; and
    (C) Justification for the extension;
    (ii) It is the responsibility of the applicant to ensure all 
applicable support documents remain valid and in the possession of the 
applicant. If the request for extension is approved, BXA will provide 
the applicant with a written response.
    (g) Specific types of licenses--(1) Licenses for temporary exports 
or Reexports. If you have been granted a license for the temporary 
export or reexport of items and it is decided not to return the items 
to the United States, you must submit a license application requesting 
authorization to dispose of the items. Except where the items will be 
used on a temporary basis at the new [[Page 25362]] destination (and 
returned to the United States after such use), you must ensure your 
license application is accompanied by any documents that would be 
required if you had requested a license to export or reexport the same 
item directly to the new destination.
    (2) Intransit within the United States. If you have been issued a 
license authorizing an intransit shipment through the United States, 
your license will be valid only for the export of the intransit 
shipment wholly of foreign origin and for which a Transportation and 
Exportation customs entry or an Immediate Exportation customs entry is 
outstanding.
    (3) Intransit outside the United States. If you have been issued a 
license authorizing unlading or transit through a country listed in the 
Intransit Prohibition contained in part 734 of this subchapter, and you 
did not know the identity of the intermediate consignee at the time of 
the original license application, you must notify BXA in writing once 
you have ascertained the identity of the intermediate consignee. Your 
notification must contain, the original license number, and the 
complete name, address, and telephone number of the intermediate 
consignee. The letter must be submitted to BXA at the address listed in 
Sec. 748.15 of this subchapter.
    (4) Replacement license. If you have been issued a ``replacement'' 
license (for changes to your original license that were not covered in 
Sec. 750.7(b) of this part), you must attach the ``replacement'' 
license to the original, and retain both.
    (h) Records. If you have been issued a license you must retain the 
license, and maintain complete records in accordance with part 762 of 
this subchapter including any licenses (whether used or unused, valid 
or expired) and all supporting documents and shipping records.


Sec. 750.8  Revocation or suspension of licenses.

    (a) Revocation. All licenses to export or reexport are subject to 
revision, suspension, or revocation, in whole or in part, without 
notice whenever there is reason to know that the EAR have been violated 
or that a violation is about to occur. BXA may revoke any license in 
which a person who has been convicted of one of the statutes specified 
in section 11(h) of the EAA, at the discretion of the Secretary of 
Commerce, has an interest in the license at the time of the conviction. 
It may be necessary for the BXA to stop a shipment or an export or 
reexport transaction at any stage in the process (e.g., in order to 
prevent an unauthorized export or reexport). If a shipment is already 
en route, BXA may be further necessary to order the return or unloading 
of such shipment at any port of call in accordance with the provisions 
of the EAA.
    (b) Return of revoked or suspended licenses. If BXA revokes or 
suspends a license, the licensee shall return the license immediately 
upon notification that the license has been suspended or revoked. The 
license must be returned to BXA at the address listed in Sec. 748.15 of 
this subchapter, Attn:'' Return of Revoked/Suspended License''. All 
applicable supporting documents and records of shipments must be 
retained by the licensee in accordance with the recordkeeping 
provisions of part 762 of this subchapter. If the licensee fails to 
return a license immediately upon notification that it has been 
suspended or revoked, the Office of Export Enforcement may impose 
sanctions provided for in Sec. 764.3 of this subchapter.


Sec. 750.9  Duplicate License.

    (a)(1) Lost, stolen or destroyed. If a license is lost or destroyed 
you may obtain a duplicate of the license by submitting a letter to the 
BXA at the address listed in Sec. 748.15 of this subchapter, Attention: 
Duplicate License Request''. You must certify in your letter:
    (i) That the original license ([number] issued to [name and address 
of licensee]) has been lost or destroyed;
    (ii) The circumstances under which it was lost or destroyed;
    (iii) If the original license is found, the licensee will return 
either the original or duplicate license to the BXA.
    (2) If shipment was made against the original license, those 
shipments must be counted against the duplicate license. If you are 
issued a duplicate license you must retain the duplicate license in 
accordance with the recordkeeping provisions of part 762 of this 
subchapter.
    (b) Hong Kong Trade Department. BXA will automatically issue a 
duplicate license whenever the license lists a party in Hong Kong as 
the intermediate consignee, or when Hong Kong is identified as the 
country from which the reexport will take place. The duplicate license 
will be labeled ``Duplicate for Hong Kong Trade Department''. This 
duplicate must be forwarded to the reexporter or intermediate consignee 
for submission to the Hong Kong Trade Department. The original license 
must be retained on file by the licensee in accordance with the 
recordkeeping provisions contained in part 762 of this subchapter.


Sec. 750.10  Transfers of licenses for export.

    (a) Authorization. As the licensee, you may not transfer a license 
issued for the export of items from the United States to any other 
party, except with the prior written approval of BXA. BXA may authorize 
a transfer of a license for export to a transferee who is subject to 
the jurisdiction of the United States, is a principal party in 
interest, and will assume all powers and responsibilities under the 
license for the control of the shipment of the commodities or 
technology out of the United States. BXA will approve only one transfer 
of the same license and only transfers of licenses to export items.
    (b) How to request the transfer of licenses--(1) Letter from 
licensee. You, as the licensee, must submit a letter in writing to 
request transfer of a license or licenses containing the following:
    (i) The reasons for the requested transfer;
    (ii) Either a list of the outstanding license numbers or a 
statement that all outstanding licenses in the name of the licensee are 
to be transferred, and the total number of such outstanding licenses;
    (iii) A list of all license applications for export to be 
transferred that are pending with BXA, identifying the Application 
Control Number for each, or other information that will assist in 
identifying the pending license applications;
    (iv) Name and address of the person you intend to transfer the 
licenses and license applications to;
    (v) The facts necessitating transfer;
    (vi) A statement as to whether any consideration has been, or will 
be, paid for the transfer; and
    (vii) Identification by name of the legal document (certificate, 
agreement, etc.) or other authority by which the new firm name is 
legally established, the new corporation or firm created, or the assets 
transferred,showing the effective date of such document and the state 
where filed or recorded.
    (2) Information from transferee. The person to whom you wish to 
transfer your license(s) must provide you a signed letter, that must be 
submitted with your request, containing the following:
    (i) That the transferee is a principal party in interest in the 
transaction covered by the license, or is acting as agent for a 
principal party in interest;
    (ii) That the transferee is subject to the jurisdiction of the 
United States;
    (iii) That the transferee assumes all powers and responsibilities 
under the [[Page 25363]] license for the control of the shipment of the 
items out of the United States;
    (iv) Whether any consideration has been, has not been, or will be 
paid for the transfer;
    (v) The name and address of the foreign principal in instances 
where the transferee will make the export as an agent on behalf of a 
foreign principal; and
    (vi) If the license is to be transferred to subsidiary or firm, or 
if you transfer to the transferee all, or a substantial portion, of 
your assets or business, the transferee must certify that the legal 
authority changing the exporter imposes on the transferee the 
responsibility to accept and fulfill the obligations of the transferor 
under the transactions covered by the license; and
    (vii) The following certification:

The undersigned hereby certifies that, if license number(s) 
__________ is (are) transferred in accordance with my (our) request, 
any and all documents evidencing the order covered by 
this(these)license(s) will be made available upon demand and will be 
retained by me (us) for a period of two years from the time of the 
export from the United States, or any known reexport, transshipment, 
or diversion, or any other termination of the transaction whether 
formally in writing or by any other means, whichever is later. The 
undersigned will promptly report to the Bureau of Export 
Administration any material or substantive changes in the terms of 
the order and any other facts of the export transaction known or 
reported to the undersigned at any future time by any party to the 
export transaction.

    (c) Notification of transfer and recordkeeping. Unless instructed 
otherwise by BXA, you must retain the license(s) pending notification 
by the BXA of the action taken. If the request is approved, you must 
forward the license(s) to the transferee and the validated letter 
received from BXA authorizing the transfer. If the transfer request is 
not approved, the license(s) must either be returned to BXA or used by 
you if you so choose and have retained the legal and operational 
capacity fully to meet the responsibilities imposed by the license(s). 
If your initial request is returned by BXA for additional information, 
after obtaining the necessary information you may resubmit your 
request.


Sec. 750.11  Shipping tolerance.

    (a) Applicability and use of shipping tolerances. Under some 
circumstances, you may use a license issued for the export of items 
from the United States to export more than the quantity or value shown 
on that license. This additional amount is called a shipping tolerance. 
This section tells you, as the licensee, when you may take advantage of 
a shipping tolerance and the amount of shipping tolerance you are 
permitted to use.
    (1) If you have already shipped the full amount approved on your 
license, you may not use this shipping tolerance provision. No further 
shipment may be made under the license.
    (2) The amount of shipping tolerance you are permitted is based on 
the ``Unit'' specified for the item you want to ship in the applicable 
ECCN on the CCL (see Supplement No. 1 to part 774 of this subchapter). 
You must calculate shipping tolerance based on the applicable ``Unit'' 
whether that be ``Number'', ``Dollar value'', or ``Area, Weight, or 
other Measure''. You may not use any other unit that may appear on your 
license.
    (b) Calculating shipping tolerances. There are three basic rules, 
one for items licensed by ``Dollar Value'', one for items licensed by 
``Number'', and another for items licensed by ``Area, Weight or other 
Measure''.
    (1) Items licensed by ``Dollar Value''. If the ``Unit'' paragraph 
in ECCN applicable to your item reads ``Sec. value'' or ``in 
Sec. value'', there is no shipping tolerance. You may not ship more 
than the dollar value stated on your license.
    (2) Items licensed by ``Number''. If the ``Unit'' paragraph in ECCN 
applicable to your item reads ``Number'' or ``in Number'', there is no 
shipping tolerance with respect to the number of units. However, the 
value of all of your shipments under one license may exceed the dollar 
value stated on that license by up to 25%.
    (3) Items licensed by ``Area, Weight or Measure''. If the ``Unit'' 
paragraph in ECCN applicable to your item reads ``kilograms'' or 
``square meters'' or some other unit of area, weight or measure, your 
shipment may exceed the unshipped balance of the area, weight or other 
measure listed on your license by up to 10% and the total dollar value 
shown on your license by up to 25%, unless:
    (i) Your license stipulates a specific shipping tolerance; or
    (ii) Your item is controlled for short supply reasons and a smaller 
tolerance has been established. (see part 754 of this subchapter).
    (c) Examples of shipping tolerances. (1) A license authorizes the 
export of 100,000 kilograms of an item controlled by an ECCN where the 
``Unit'' is stated as ``kilograms'', the total cost of which is 
$1,000,000:
    (i) One shipment. If one shipment is made, the quantity that may be 
exported may not exceed 110,000 kg (10% tolerance on the unshipped 
``Area, Weight, or Measure'' balance), and the total cost of that one 
shipment may not exceed $1,250,000:

$1,000,000....  (the total value shown on the license)                  
+250,000......  (25% of the total value shown on the license)           
---------------                                                         
$1,250,000....                                                          
                                                                        

    (ii) Two shipments. If the first shipment is for 40,000 pounds, the 
second shipment may not exceed 66,000 kg (10% of the unshipped balance 
of 60,000 kg (6,000 kg) plus the unshipped balance), and the total cost 
of the second shipment shall not exceed $850,000:

$600,000......  (the value of the unshipped balance of 60,000 kg)       
+250,000......  (25% of the original total value shown on the license)  
---------------                                                         
$850,000......                                                          
                                                                        

    (iii) Three shipments. If the first shipment is for 40,000 kg and 
the second shipment is for 20,000 kg, the third shipment may not exceed 
44,000 kg (10% of the unshipped balance of 40,000 kg (4,000 kg) plus 
the unshipped balance), and the total cost of the third shipment can 
not exceed $650,000:

$400,000......  (the value of the unshipped balance of 40,000 kg)       
+250,000......  (25% of the original total value on the license)        
---------------                                                         
$650,000......                                                          
                                                                        

    (2) A license authorizes the export of an item controlled by an 
ECCN where the ``Unit'' is stated as ``$value'', the total cost of 
which is $5,000,000. There is no shipping tolerance on this license 
because the items are controlled by an ECCN where ``$value'' is the 
stated ``Unit''.
    (3) A license authorizes the export of 10 pieces of equipment 
controlled by an ECCN where the ``Unit'' is stated as ``Number'', with 
a total value of $10,000,000 and the export of parts and accessories 
covered by that same entry valued at $1,000,000:
    (i) If one shipment is made, the quantity of equipment that may be 
exported may not exceed 10 pieces of equipment because there is no 
shipping tolerance on the ``number'' of units. That one shipment of 
equipment may not exceed $12,500,000:

                                                                        
[[Page 25364]]
                                                                        
$10,000,000...  (the total value shown on the license)                  
+2,500,000....  (25% of the total value shown on the license)           
---------------                                                         
$12,500,000...                                                          
                                                                        

  If the one shipment includes parts and accessories, those parts and 
accessories may not exceed $1,000,000 because there is no shipping 
tolerance on any commodity licensed in terms of dollar value.
(ii) If the first shipment is for 4 pieces of equipment valued at 
$4,000,000, the second shipment may not exceed 6 pieces of equipment 
(no tolerance on ``number'') valued at no more than -$8,500,000:

$6,000,000....  (the value of the unshipped 6 pieces)                   
+2,500,000....  (25% of the original total value shown on the license)  
---------------                                                         
$8,500,000....                                                          
                                                                        

If the first shipment includes $300,000 of parts and accessories, the 
second shipment may not exceed $700,000 of parts and accessories 
because there is no shipping tolerance on any commodity licensed in 
terms of dollar value.
    (iii) If the first shipment is for 4 pieces of equipment valued at 
$4,000,000 and the second shipment is for 3 pieces of equipment valued 
at $3,000,000, the third shipment may not exceed 3 pieces of equipment 
(no tolerance on ``number'') valued at no more than $5,500,000:

  $3,000,000..  (the value of the unshipped 3 pieces)                   
+2,500,000....  (25% of the original value shown on the license)        
---------------                                                         
$5,500,000....                                                          
                                                                        

If the first shipment includes $300,000 of parts and accessories and 
the second shipment incudes another $300,000, the third shipment may 
not exceed $400,000 because there is no shipping tolerance on 
commodities licensed in terms of dollar value.

PART 752--SPECIAL COMPREHENSIVE LICENSE

Sec.
752.1  Introduction.
752.2  Activities that may be authorized under the Special 
Comprehensive License.
752.3  Eligible items.
752.4  Eligible countries.
752.5  Steps you must follow to apply for a Special Comprehensive 
License.
752.6  Reexports.
752.7  Direct shipment to customers from the SCL holder.
752.8  License process.
752.9  Action on applications.
752.10  Action on Form BXA-752.
752.11  Changes to the Special Comprehensive License.
752.12  Internal Control Programs.
752.13  Recordkeeping requirements.
752.14  Inspection of records.
752.15  Audits.
752.16  Export clearance.
752.17  Effect of other regulations.
752.18  Administrative actions.

Supplement No. 1: Instructions for Completing Forms BXA-748P and BXA-
752 for Requests for Special Comprehensive Licenses

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 752.1  Introduction.

    (a) Scope--(1) Introduction. This part describes the provisions of 
the Special Comprehensive License (SCL). You may use SCLs, when 
appropriate, in lieu of other licenses described in part 748 of this 
subchapter, for multiple exports and reexports of items subject to the 
EAR. The SCL provides authorization to make specified exports and 
reexports otherwise prohibited by General Prohibitions One, Two, and 
Three described in part 734 of this subchapter. However, the existence 
of an SCL does not supersede an exporter's obligation to request a 
separate license as may be required by part 744 of this subchapter. 
Because the Bureau of Export Administration (BXA) does not review each 
individual transaction covered by a SCL, parties to the SCL must have 
the mechanisms in place to ensure that each export and reexport made 
under a SCL meets all the terms and conditions of the license and are 
in accordance with all applicable provisions in the Export 
Administration Regulations (EAR). It is through the design and 
effective implementation of an Internal Control Program (ICP) that the 
SCL holder and the SCL consignee (referred to as ``consignee'' for 
purposes of this part) assure that exports and reexports are not made 
contrary to the EAR.
    (2) ICP Levels. To qualify for a SCL, you will be required to 
develop an ICP. ICPs can be generally categorized into three levels 
that are dependent upon the activities involved. Section 752.12 of this 
part includes a general description of the elements of each of the 
three ICP levels, and guidance on which ICP your company must establish 
before making shipments under the SCL. The elements of each ICP reflect 
the complexity of the activities authorized under the SCL, the 
countries involved, and the relationship between the SCL holder and the 
approved consignees. BXA may require you to include in your ICP any 
combination of elements from one or more levels, depending upon the 
nature of your SCL application.
    (b) [Reserved].


Sec. 752.2  Activities that may be authorized under the Special 
Comprehensive License.

    (a) General authorizations. Under the SCL, BXA may authorize you to 
perform any number of activities, which can be grouped under the 
general categories of ``service'', ``end-user'', ``distribution'' and 
``other'' activities. Examples of the types of activities that BXA may 
authorize under the SCL include:
    (1) Service activities. Exporting and reexporting items subject to 
the EAR for use in servicing other items subject to the EAR. Related 
activities include:
    (i) Exports of replacement parts for the repair of items subject to 
the EAR that have been legally exported from the U.S. This includes 
replacement of defective parts. Items that upgrade the original item 
are permitted as long as the upgrade does not exceed the performance 
parameter of the particular ECCN under which the item was originally 
classified (see Supplement No. 1 to part 774 of this subchapter).
    (ii) Exports to support services performed related to previously 
exported U.S.-origin items. Examples include computer help lines, 
training, advisory services, transfer of information or data, and 
testing.
    (iii) Exports to support maintenance. Servicing that involves 
normal and usual activities to maintain items in proper and safe 
operating condition, or to restore items to the original condition. 
Servicing may result in upgrades, provided that the upgrade does not 
exceed the performance parameters of the ECCN under which the item was 
originally classified (see Supplement No. 1 to part 774 of this 
subchapter).
    (iv) Exports to a designated service facility.
    (v) Exports of items for stocking. Stocking of ``spare parts'' 
where items are kept on hand to assure prompt repair of items abroad.
    (A) Definition of spare parts. As used in this part 752, ``spare 
parts'' includes ``sub-assemblies'', but does not include test 
instruments.
    (B) Definition of sub-assemblies. As used in this part 752, ``sub-
assemblies'' means a number of components assembled to perform a 
specific function or functions, replaceable as a unit, and 
[[Page 25365]] not capable of operating as a standalone. One example is 
printed circuit boards that include mounted components. The term ``sub-
assemblies'' does not include major subsystems such as those composed 
of a number of sub-assemblies, for example, the entire memory bank or 
the complete central processing unit of a computer.
    (2) End-user activities. Exporting and reexporting items subject to 
the EAR for use as capital equipment or for incorporating items into 
manufactured items, where the U.S. content is above the de minimis 
levels identified in Sec. 732.4(b) of this subchapter. Related 
activities include:
    (i) Exporting items for capital expansion projects for constructing 
a new facility or expanding an existing facility;
    (ii) Providing maintenance, repair, and operating supplies for an 
existing facility;
    (iii) Supplying parts, components, and materials for use in the 
production of foreign-made items;
    (iv) Exporting items to support scientific data acquisition when 
the items remain under the control of either the SCL holder or the 
consignee (examples include charting shorelines, recording tidal 
activity, drawing core samples, and oil and gas exploration);
    (v) Exporting items for installation and expansion of services, 
such as providing wiring and cable for establishing a cable network; or
    (vi) Supplying chemicals or chemical and biological equipment to 
subsidiaries under the ``effective control'' of the United States 
exporter or to other end-users specifically authorized by the BXA. As 
used in this part 752, ``effective control'' means the exercise of a 
right, under a contractual agreement between the U.S. exporter and the 
consignee, to determine and control the export of items authorized 
under a SCL and
    (3) Distribution activities. Exporting and reexporting items 
subject to the EAR for the purpose of resale and reexport by 
consignees, such as:
    (i) Reselling and/or reexporting in the form received under the 
SCL;
    (ii) Assembling a finished product from kit form;
    (iii) Adding software to a U.S. computer or other device;
    (iv) Using an item for systems integration (i.e., assembling 
hardware and various components/software for a specific application by 
an end-user customer);
    (v) Adding support equipment (e.g., test equipment being shipped 
with a foreign-produced system);
    (vi) Installing communication/navigation equipment in a customer's 
aircraft, or direction finding equipment on a vessel;
    (vii) Adding discrete U.S. components to foreign-produced systems; 
or
    (viii) Reselling foreign manufactured products that exceed the de 
minimis levels described in Sec. 734.2(b)(2) of this subchapter.
    (4) Other activities. Other activities may be authorized by BXA 
under the SCL on a case-by-case basis.
    (b) Prohibited activities. The general prohibitions described in 
Sec. 734.2(b) (4) through (10) of this subchapter apply to all exports 
and reexports by, and conduct of, all parties named on the SCL, unless 
you are specifically authorized under the SCL to perform such 
activities or the particular activity otherwise qualifies for a License 
Exception described in part 740 of this subchapter.


Sec. 752.3  Eligible items.

    (a) All items subject to the EAR are eligible for export and 
reexport under the SCL, except:
    (1) Items identified by the letters MT in the ``Reason for 
Control'' paragraph on the Commerce Control List (CCL) (see Supplement 
No. 1 to part 774 of this subchapter);
    (2) Biologicals, or equipment and materials that can be used in the 
production of biologicals (items controlled by ECCNs 1C61, 1B71, 1E61, 
and 1E70);
    (3) Chemicals and chemical equipment and materials that can be used 
in the production of chemical weapons to destinations listed in Country 
Group D:3 (see Supplement No. 1 to part 740 of this subchapter) (items 
controlled by ECCNs 1B70, 1C60, 1E60, and 1D60);
    (4) Maritime (civil) nuclear propulsion systems or associated 
design or production software and technology identified in Sec. 744.5 
of this subchapter;
    (5) Communication intercepting devices controlled by ECCN 5A80 on 
the CCL (see Supplement No. 1 to part 774 of this subchapter);
    (6) Items identified by the letters ``SS'' in the ``Reason for 
Control'' paragraph on the CCL;
    (7) Items specifically identified as ineligible by BXA on your 
approved SCL; and
    (8) Additional items excluded consistent with multilateral 
obligations.
    (b) Exports of items identified as NP in the ``Reason for Control'' 
paragraph on the CCL will not generally be authorized under an approved 
SCL for export or reexport to countries listed in Country Group D:2 
(see Supplement No. 1 to part 740 of this subchapter).


Sec. 752.4  Eligible countries.

    (a) General provisions. You or your approved consignees may export 
or reexport items covered by a SCL to all countries except:
    (1) Countries designated by the Secretary of State that have 
repeatedly provided support for acts of international terrorism (Cuba, 
Libya, Iran, Iraq, North Korea, Sudan, Syria).
    (2) Countries listed in Country Group E (see Supplement No. 1 to 
part 740 of this subchapter); and
    (3) Other countries that BXA may declare on a case-by-case basis as 
ineligible to receive items under the SCL.
    (b) Servicing prohibitions. Under the SCL, you may not service any 
item owned or controlled by, or under the lease or charter of, entities 
in countries identified in paragraphs (a)(1) through (a)(3) of this 
section or any national of such countries.


Sec. 752.5  Steps you must follow to apply for a Special Comprehensive 
License.

    (a) Step One: Establish exporter reliability. (1) Pre-application 
consultation. To apply for a SCL, BXA must determine your reliability 
as a potential SCL holder. BXA usually does this through consultation 
with company officials, and a review of the elements identified in 
paragraph (a)(2) of this section. To determine whether your company 
requires such a consultation before you apply for a SCL, contact BXA at 
the address listed in Sec. 752.19 of this part.
    (2) Criteria to determine eligibility. BXA will review the 
following to determine SCL holder eligibility:
    (i) Evidence of past licensing history and projected, continuous 
large volume exports;
    (ii) Reliability of all parties relative to their compliance with 
U.S. export controls;
    (iii) Company commitment, as well as the commitment of appropriate 
consignees, of the necessary resources to implement an adequate ICP; 
and
    (iv) Evidence of your knowledge of all provisions of the EAR.
    (b) Step Two: Establish consignee reliability. (1) Definition of 
consignee. Consignee, as used in this part 752, means a legal entity 
authorized as a consignee on the SCL. The consignees may be:
    (i) A party that is ``controlled-in-fact'' by the SCL holder;
    (ii) An unrelated party that has entered into a written agreement 
with the SCL applicant to adhere to all provisions of the EAR, and 
related documentation applicable to an approved consignee; or 
[[Page 25366]] 
    (iii) Any other party receiving items under the SCL.
    (2) Requirements. You must make an initial determination of the 
reliability of all consignees that are listed on your application for a 
SCL.
    (3) Criteria for determining reliability. For purposes of this 
initial determination, a consignee is considered ``reliable'' if any 
one of the following apply:
    (i) Your proposed consignee has a satisfactory record established 
through BXA pre-license checks, extensive experience as a consignee 
under a license issued by BXA, or has been previously approved by BXA 
as a consignee on a special license;
    (ii) The proposed consignee is a wholly-owned subsidiary or a 
``controlled-in-fact'' affiliate of the applicant or of a consignee 
that is already approved on a SCL; or
    (iii) You have evidence of an established, on-going business 
relationship with the proposed consignee.
    (4) Determination by BXA. The provisions of paragraph (b)(3) of 
this section do not preclude the authority of BXA to determine the 
reliability and eligibility of a party as a consignee. BXA may, based 
upon any negative information on the proposed consignees, refuse to 
authorize a proposed consignee and remove certain consignees from your 
SCL application.
    (c) Step Three: Prepare your documentation. Prepare Form BXA-748P, 
an ICP, a comprehensive narrative statement, Form BXA-752, and all 
applicable certifications. Submit this documentation to BXA at the 
addresses listed in Sec. 752.19 of this part.
    (1) Form BXA-748P, Multipurpose Application. Complete Form BXA-
748P, Multipurpose Application, according to the instructions found in 
Supplement No.1 to part 748 of this subchapter. Certify submission of 
all applicable SCL documentation by placing an ``X'' in the appropriate 
boxes in Block 8 on the Form BXA-748P.
    (2) ICP. You must provide a copy of your proposed ICP as required 
by Sec. 752.12 of this part.
    (3) Comprehensive narrative statement. Prepare a comprehensive 
narrative statement on your company letterhead that includes the 
following information:
    (i) An overview of the total business activity you and other 
parties will perform under the SCL.
    (ii) An explanation of the relationship between the parties to the 
application, such as affiliate, subsidiary, or parent.
    (iii) A description of the role of other participants under the SCL 
and whether they are under the effective control of the SCL holder or 
the consignee. For example, describe whether vessels receiving exports 
for scientific data gathering or exploration activities are 
``controlled-in-fact'' by the SCL holder or consignee. You must attach 
a list of subcontractors or vessels to the Form BXA-6052 that exercises 
control over those entities.
    (iv) A detailed list of all items you would like to export or 
reexport under the SCL, including Export Control Classification Numbers 
(ECCN), and the descriptive item category (i.e, ``semiconductors,''). 
Refer to the Commerce Control List (Supplement No. 1 to part 774 of 
this subchapter for the appropriate ECCNs).
    (v) A detailed list of all items eligible for export under a 
License Exception described in part 740 of this subchapter, which will 
be included in shipments of controlled items authorized under the SCL. 
Indicate the applicable ECCN for each item.
    (vi) The total dollar value of sales or other transactions during 
the last 12 month period preceding submission of your application 
relevant to the types of activities you are requesting on the 
application. Also include the projected total dollar value of all 
transactions you anticipate to make throughout the validity period of 
the license, and the basis upon which you made that estimate. Include a 
ratio of controlled items to those not subject to the EAR, that have 
been, and will be, exported under the SCL.
    (vii) The final disposition of the items. If the activity you are 
requesting is to manufacture commodities for resale, describe the 
finished product and how it will be sold and/or distributed.
    (viii) A certification that you have in place, or will establish, 
upon approval of the application by BXA, an ICP that incorporates the 
elements set forth in Sec. 752.12 of this part and as required by BXA 
upon approval of the SCL. You must indicate whether any of the elements 
of the ICP have not been implemented and explain why these elements 
were deemed inapplicable. Existence of a properly constructed ICP will 
not relieve you of your responsibility to comply with requirements of 
all applicable regulations pertaining to your SCL.
    (ix) A detailed description of the primary activities of the 
various classes of proposed consignees (e.g., sales, manufacturing, 
assembly, warehousing/redistribution, servicing, etc.). Indicate the 
dollar volume of sales or other transactions with each proposed 
consignee in the items involved during the 12 month period preceding 
submission of your application. Also describe the anticipated nature 
and volume of regular and repetitive transactions proposed between 
consignees under the license.
    (x) Information on whether the consignees will use directly or 
reexport the items received under a SCL. You must include enough detail 
of the proposed consignee's activity for BXA to determine the 
appropriate level of ICP required.
    (4) Form BXA-752, ``Statement of Consignee in Support of Special 
Comprehensive License Application.'' Each consignee named on the SCL 
application must provide to you a completed Form BXA 752. This 
requirement also applies to subsidiaries, affiliates and branches of 
the applicant company, or other independent firms. Each completed Form 
BXA-752 must be submitted by you with your application for a SCL.
    (i) Exceptions. Form BXA-752 is not required if the proposed 
consignee is the same legal entity as the applicant or if the SCL 
consignee is a foreign government agency.
    (ii) Number of copies. Each named consignee must provide three 
copies of Form BXA-752.
    (iii) Authorized signatures. Each of the three copies required by 
paragraph (a)(3)(ii) of this section must include the original 
signature of a responsible official of the named consignee who has:
    (A) Personal knowledge of the information included on the form BXA-
752;
    (B) Authority to bind the company to the terms and conditions of 
the SCL; and
    (C) The power and authority to control the use and disposition of 
the licensed items in the country of destination.
    (iv) The authority to sign form BXA-752P may not be delegated to 
any person whose authority to sign is not inherent in his/her official 
position with the company. The signing official must include their 
official title with the signature. All copies must be co-signed by the 
applicant and submitted with the application to BXA.
    (5) Consignee certifications. Each consignee must provide certain 
certifications on either Form BXA-752 or by letter. Letters of 
certification must be prepared on company letterhead, signed by the 
consignee, and attached to Form BXA-752. Facsimile copies of 
certification letters are acceptable. Each consignee must certify that:
    (i) They have an ICP in place, if required by Sec. 752.12 of this 
part. If [[Page 25367]] certain elements of an ICP are not required, 
include the reasons for that determination;
    (ii) No items received under the SCL will be reexported unless 
authorized by Sec. 752.6 of this part, and that the consignee agrees to 
the notice requirements described in Sec. 752.6(d) of this part;
    (iii) They will comply with all provisions of the EAR, including 
the recordkeeping provisions of part 762 of this subchapter and all 
applicable audit requirements of Sec. 752.15 of this part; and
    (iv) They will make available for review by BXA all records 
required under part 762 of this subchapter.
    (6) Additional certifications. (i) Temporary Exports. Consignees 
who plan to exhibit or demonstrate items in countries other than those 
in which they are located or are authorized under a SCL, an approved 
Form BXA-752, or a License Exception described in part 740 of this 
subchapter may obtain permission to do so by providing the following 
additional certification on the Form BXA-752. If the consignee has 
already been previously approved by BXA to receive items under a SCL, 
the same certification may be provided on company letterhead, in 
triplicate, which upon approval will be validated by BXA.

    ``I(We) request authorization to reexport temporarily, for 
exhibit or demonstration in countries eligible to receive items 
under the SCL. The items exported will be retained under my (our) 
ownership and control, and will be returned by me (us) to (name 
destination) promptly after their exhibit or demonstration abroad, 
and in no case later than one year after the date of reexport, 
unless other disposition is authorized in writing by the Bureau of 
Export Administration.''

    (ii) Exports of technology and software. If you are requesting 
authorization from BXA to export technology or software eligible for 
export or reexport under License Exception 17 (TSR), described in 
Sec. 750.19 of this subchapter, or that requires a license, both the 
SCL holder and consignee must certify that they have received from the 
foreign importer the written assurances described in Sec. 740.18 of 
this subchapter.
    (iii) Chemicals and chemical and biological equipment 
certification. Section 752.6(b) of this part prohibits retransfers, 
resales, and reexports of chemicals and chemical and biological 
equipment without specific authorization by BXA. If you are requesting 
authority to export chemicals or chemical and biological equipment 
(ECCNs identified with the letters CB in the ``Reason for Control'' 
paragraph on the CCL (see Supplement No. 1 to part 774 of this 
subchapter), the consignee must include the following certification on 
the Form BXA-752, or on company letterhead, in triplicate.

    ``No items received under this Special Comprehensive License 
will be transferred resold, or reexported to a destination that 
requires a license, unless the new end-user has been approved by the 
Bureau of Export Administration, and in no case will the items be 
transferred, resold, or reexported to a party who is not the end-
user.''


Sec. 752.6  Reexports.

    (a) Authorized reexports. Consignees may reexport items under 
License Exception 18 (APR) (see Sec. 740.20 of this subchapter). In 
addition, all consignees may reexport items without approval from BXA 
under any one of the following circumstances, unless otherwise 
specifically exempt by the regulations in this subchapter or by a 
condition placed on your SCL.
    (1) Reexports to destinations approved by BXA through validation of 
a Form BXA-752, according to the terms stated on the Form BXA-752 and 
the comprehensive narrative statement required by Sec. 752.5(c)(3) of 
this part; or
    (2) Reexports of items approved under a SCL to and among other 
consignees approved on the same SCL.
    (b) Prohibitions--(1) Reexports to destinations described in 
Sec. 752.4. Notwithstanding the authority of paragraph (a) of this 
section, consignees may not use the authority of the SCL to reexport to 
destinations not eligible to receive items under the SCL, as described 
in Sec. 752.4 of this part.
    (2) Retransfer, resell and reexport of chemicals and chemical and 
biological equipment. You may not retransfer, resell, or reexport 
chemicals or chemical and biological equipment (ECCNs identified with 
the letters CB in the ``Reason for Control'' paragraph on the CCL (see 
Supplement No. 1 to part 774 of this subchapter) under the SCL without 
specific authorization by BXA.
    (c) Sourcing. Consignees who obtain SCL-eligible items abroad, 
which are subject to General Prohibitions One, Two, or Three (see part 
734 of this subchapter), may reexport them under the authority of the 
SCL, provided that they are reexported in accordance with the firm's 
comprehensive narrative statement required by Sec. 752.5(c)(3) of this 
part and ICP required by Sec. 752.12 of this part. Either the SCL 
holder or the consignee must submit the request for reexport of items 
(in triplicate), on their letterhead, BXA-6052 or within the 
comprehensive narrative statement.
    (d) Destination control statements--(1) General provisions. Unless 
specifically exempted by the SCL or subsequently in writing by BXA, all 
approved consignees reexporting items received under a SCL must notify 
their customers on the commercial invoice (or by such other means 
specifically approved by BXA) of reexport restrictions. See 
Sec. 758.6(b)(6) of this subchapter for information on notification 
procedures.
    (2) Requirements for retransfers, resales, and reexports of 
chemicals and chemical and biological equipment. (i) General 
requirements. Unless specifically exempt on the SCL, or subsequently in 
writing by BXA, all approved consignees not located in Country Group 
A:3 (see Supplement No. 1 to part 740 of this subchapter) must notify 
each end-user approved by BXA of the restrictions on unauthorized 
reexports the items described in paragraph (b)(2) of this section. This 
notification must appear on the commercial invoice or other document 
specifically approved by BXA.
    (ii) Notification. The notice required by paragraph (d)(2)(ii) of 
this section must read as follows:

    ``These items were authorized for export from the United States 
under a Special Comprehensive License on the condition that they may 
not be reexported without prior approval from the United States 
Government to countries not listed in Country Group A:3 in the 
Export Administration Regulations.''

    (3) Exceptions. The notice required by paragraph (d)(1) of this 
section is not required if the shipment is destined to a country in 
Country Group A:1 (see Supplement No. 1 to part 740 of this 
subchapter).


Sec. 752.7  Direct shipment to customers.

    (a) (1) General authorization. Upon request by a consignee, a SCL 
holder or another consignee approved under the same SCL is authorized 
to deliver products directly to the consignee's customer in either:
    (i) The requesting consignee's country; or
    (ii) Another country authorized to receive exports under the 
requesting consignee's validated Form BXA-752.
    (2) The SCL holder or consignee making direct shipments authorized 
by this section must have internal controls procedures in place 
relative to such shipments.
    (b) Procedures--(1) Exports by a SCL holder. The license holder may 
make a direct shipment by entering on the Shipper's Export Declaration 
(SED) the name and address of the customer as ultimate consignee and 
adding the notation ``by order of (name and address of consignee 
requesting the direct shipment)''. The notation must appear 
[[Page 25368]] below the commodity description and must cite the SCL 
number followed by the three digit number of the consignee requesting 
the ``by order of'' shipment.
    (2) Reexports by a consignee. An approved consignee may make a 
direct reexport shipment to a customer of another approved consignee on 
the same SCL by showing on the commercial invoice the name and address 
of the customer as ultimate consignee and adding the notation ``by 
order of (name and address of consignee requesting the direct 
shipment).'' SCL holders and consignees utilizing the direct shipment 
provision may invoice the shipments directly to the requesting 
consignee's customers if copies of applicable invoices are maintained 
by both the shipping party and requesting consignee. This procedure may 
not be used for items identified by the letters ``NP'', ``CB'', ``SS'', 
``CC'', or ``RS'' in the ``Reason for Control'' paragraph on the CCL 
(Supplement No. 1 to part 774 of this subchapter), unless specifically 
authorized by BXA.


Sec. 752.8  License application process.

    (a) Scope of review. Under a SCL, you are authorized to make 
multiple export and reexports without review and approval of each 
individual transaction by BXA. To approve a SCL, BXA must be satisfied 
that the persons benefiting from this license will adhere to the 
conditions of the license and the EAR, and that approval of the 
application will not be detrimental to U.S. national security or 
foreign policy interests.
    (b) Elements of review. To permit BXA to make such judgments, BXA, 
including BXA's Office of Export Enforcement, and other departments and 
agencies will thoroughly analyze your past export transactions, inspect 
your export documents, and interview company officials of both the 
applicant and the consignees. If BXA cannot verify that appropriate 
internal control procedures are in place, and establish the reliability 
of the proposed parties to the application, it may deny the 
application, or modify it by eliminating certain consignees, items, 
countries, or activities.
    (c) Order requirement. You do not need to have in your possession 
an order, as defined in Sec. 748.6(b)(2) of this subchapter, from the 
proposed consignee at the time you apply for a SCL. However, evidence 
of a consignee's firm intention to place orders on a continuing basis 
is required.
    (d) Criteria for review. The following factors are among those that 
BXA will consider in determining what action to take on your 
application for a SCL:
    (1) The specific nature of proposed end-uses/end-users;
    (2) The significance of the export in terms of its contribution to 
the design, development, production, stockpiling, or use of nuclear, 
missile and/or chemical or biological weapons;
    (3) The non-proliferation credentials of the importing country;
    (4) Corporate commitment to the necessary resources to implement an 
adequate ICP;
    (5) The types of assurances against design, development, 
production, stockpiling, or use of nuclear, missiles and CBW weapons 
that are included in the ICP;
    (6) Evidence of past licensing history of the applicant and 
consignees, and projected, continuous large volume exports and/or 
reexports;
    (7) Reliability of all parties;
    (8) Information on all parties' compliance with U.S. export 
controls;
    (9) Your knowledge of U.S. export controls.
    (e) In reviewing and approving specific SCL, BXA retains the full 
right to limit the eligibility of items or to prohibit the export, 
reexport, or transfer of items under this procedure to specific firms, 
individuals, or countries.
    (f) Application processing time-frames. (1) Within 30 days of 
receipt of the application for SCL, BXA will advise you of any 
correctable deficiencies or clarifications before it proceeds with full 
review of your application.
    (2) Generally, BXA will process all applications that are complete 
in all respects and do not require additional information from you 
within 60-90 days of receipt. Certain individual consignees and end-
users may require more time for review.


Sec. 752.9  Action on applications.

    (a) Approval--(1) Validity period. SCLs are valid for four years. 
You may request an extension of a valid SCL for an additional four 
years, but such request must be received by BXA at least 60 days before 
the expiration of the SCL. To apply for an extension, submit a 
statement on company letterhead indicating:
    (i) That you continue to abide by the provisions and conditions of 
the SCL; and
    (ii) If there are changes to the SCL that you are requesting (see 
Sec. 752.10 of this part for procedures on changing your SCL).
    (2) If approved, the extension letter will be validated and 
returned to you, extending the validity period for an additional four 
more years. A complete new application and support documentation is 
required at the end of that eight-year period.
    (3) Support documentation. BXA will validate all approved support 
documentation with the Department of Commerce seal and date of 
validation.
    (4) Special license conditions. BXA may place special conditions on 
your license, such as restrictions on eligible items, countries, end-
uses, end-users or activities, or a requirement that certain sales or 
transfers of items under the SCL are subject to prior reporting to BXA. 
Such special conditions will be listed on an Approval Rider attached to 
the license in a letter from BXA to the SCL holder. You must inform all 
consignees of all license conditions prior to effecting any shipments 
under the SCL.
    (b) Denial. BXA may at any time prohibit the sale or transfer of 
items under the SCL to specified individuals, companies, or countries. 
In such cases, the SCL holder must inform all consignees, and apply for 
a license described in part 748 of this subchapter for subsequent 
transactions with such denied individual, companies, or countries.
    (c) Return without action. If BXA determines to return the SCL 
application without action, the application and all related documents 
will be returned to the applicant. BXA will also include a letter of 
explanation, stating the reason for return of the license application, 
explaining the deficiencies or additional information required for 
reconsideration, or advising you to apply for a license described in 
part 748 of this subchapter.


Sec. 752.10  Action on Form BXA-752.

    (a) Approval. With the approved SCL or amendment to the SCL, you 
will receive two validated copies of each approved Form BXA-752. You 
must retain one copy, and send one copy to the approved consignee. You 
must attach a letter to each Form BXA-752 that includes each of the 
following elements:
    (1) A description of recordkeeping requirements, applicable to the 
activities of the consignee;
    (2) Information on reexport restrictions on any item received under 
the SCL;
    (3) A description or copy of part 766 of this subchapter, listing 
administrative actions that may be taken for improper use of, or 
failure to comply with, the SCL procedures;
    (4) A description of any special conditions or restrictions on the 
license applicable to the consignee, including approved lists of 
customers, when required; [[Page 25369]] 
    (5) A description of the elements of the SCL holder's ICP relevant 
to the SCL;
    (6) A copy of the high risk customer profile contained in 
Sec. 752.12(d) of this part, when required;
    (7) A copy of the Table of Denial Orders currently in effect and 
notification that you will send the consignee regular updates to this 
list;
    (8) A notice that the consignee, in addition to other requirements, 
may not sell or otherwise dispose of any U.S. origin items when it 
knows that the items will be used in the activities described in part 
744 of this subchapter;
    (9) A requirement that the consignee acknowledge, in writing, 
receipt of the letter of transmittal and certify that it will comply 
with all of the requirements, including establishment of an ICP, when 
required by Sec. 752.12; and
    (10) A description of any special documentation requirements for 
consignees reexporting items to destinations having such requirements.
    (b) Rejection. If a consignee is not approved, the Form BXA-752 
will be returned to the SCL holder with a letter explaining the reason 
for denial.


Sec. 752.11  Changes to the Special Comprehensive License.

    You may request a change to the provisions of your Special 
Comprehensive License by either an amendment or written notice to BXA, 
depending upon the nature of the change.
    (a) Changes made by amendments. Amendments require authorization by 
BXA, and must be received by BXA 60 days before the change will occur, 
unless other arrangements are specifically agreed to by that office. 
Amendment requests must be submitted by the SCL holder on company 
letterhead (in duplicate) to the address listed in Sec. 752.19 of this 
part. Amendments are not effective until the SCL holder receives a 
validated copy of the original request.
    (1) Action requiring amendments. You must request an amendment for 
the following types of changes:
    (i) Change of company name. For changes to the company name of the 
SCL holder, the SCL holder must send a copy of the validated letter to 
all consignees and inform them to attach the copy of the validated 
letter to their validated Form BXA-752. If a consignee changes its 
name, the SCL holder must advise BXA promptly, and provide a new Form 
BXA-752 following the procedures described in Sec. 752.5(c) of this 
part.
    (ii) Additional consignees. Requests to add consignees must be 
accompanied by a Form BXA-752 and a Comprehensive Narrative Statement 
according to the provisions of Sec. 752.5(c) of this part. However, a 
new Form BXA-752 is not required where the proposed consignee is the 
same entity as SCL holder or when the proposed consignee is a foreign 
government agency. However, this fact must be stated in the amendment 
letter as well as a complete address of that entity.
    (iii) Consignee move from one country to another. Amendments to 
change the address of a consignee that moves to another country must be 
accompanied by a new Form BXA-752 in accordance with the provisions of 
Sec. 752.5(c) of this part.
    (iv) Additional items. Requests to add more items to the license 
must include the ECCN and item category, as defined in the Commerce 
Control List, Supplement No. 1 to part 774 of this subchapter.
    (2) Amendment approval. Upon approval of an amendment, BXA will 
return to you a validated copy of the original letter, indicating any 
changes that may have been made to your amendment request, or any 
special conditions that may have been imposed.
    (b) Changes made by notices. You may make the following changes to 
your SCL without prior approval from the Bureau of Export 
Administration. Such changes only require letters of notification on 
company letterhead, in duplicate. BXA must receive such notices no 
later than 30 days after the change has been made. BXA will validate 
the notice letter and return one copy to you for your records.
    (1) Deletion, suspension or revocation of consignees. In the event 
that you remove a consignee from eligibility to receive items under 
your SCL, you must notify BXA as well as all SCL consignees of that 
action. The notice must state that the deleted party is no longer 
eligible to receive items under the SCL, and include the reason for 
removal of a consignee and whether it was due to non-compliance with 
the provisions of the SCL. If BXA suspends or revokes a consignee, BXA 
will notify both you and the consignee, and provide the reason for the 
suspension or revocation.
    (2) Deletion of ECCNs. If you remove items from export and reexport 
eligibility under your SCL, you must notify BXA as well as all 
consignees of that action.
    (3) Within-country change of SCL holder or consignee address or 
phone number. Include in the letter of notice to BXA the effective date 
of change, the new address, and phone number of the point of contact 
within the firm responsible for export controls.
    (4) Changes in ownership or control of the SCL holder or SCL 
consignee. If you or a consignee change ownership or control, you must 
notify BXA by letter on company letterhead. This letter must describe 
the circumstances necessitating the change (i.e., mergers), and include 
changes in persons who have official signatory authority on the 
license.
    (c) Changes made by BXA. If BXA revises or adds an ECCN in the CCL 
or a country's eligibility already covered by the SCL changes, BXA will 
notify the SCL holder by letter or through the publication of notice in 
the Federal Register. The SCL holder is responsible for immediately 
complying with either the notification by letter or amendment in the 
Federal Register.


Sec. 752.12  Internal Control Programs.

    (a) Scope--(1) Introduction. It is through Internal Control 
Programs (ICPs) that the SCL holder and the consignee assure that 
exports and reexports are not made contrary to the national security, 
nonproliferation, and foreign policy objectives of the EAR.
    (2) General requirements. To qualify for a SCL, you must have an 
ICP in place that is designed to ensure compliance with all conditions 
of the SCL and the EAR.
    (3) Levels of ICPs. There are three levels of ICPs provided for in 
this part 752. The elements of each ICP reflect the complexity of the 
activities authorized under the SCL, the countries involved, and the 
relationship between the SCL holder and the approved consignees. BXA 
may require you to include in your ICP any combination of elements from 
one or more levels, depending upon the nature of your SCL request.
    (b) Certification requirements. You must certify, according to the 
provisions of Sec. 752.5(c)(3)(viii) of this part that you have an ICP 
in place or you are ready to implement an ICP upon approval of the 
application. You may not make any shipments under a SCL until you 
implement all the elements of the required ICP. If any of the elements 
for an ICP will not be implemented at the time of SCL approval, you 
must explain why these elements were deemed inapplicable. Existence of 
a properly constructed ICP will not relieve the SCL holder of liability 
for improper use or failure to comply with the requirements of all 
applicable regulations pertaining to its SCL.
    (c) Elements of an ICP. The elements of your ICP are dependent upon 
the activities you and your consignees are [[Page 25370]] authorized to 
perform under the SCL. Each level describes the responsibilities of 
both the SCL holder and consignees. However, Level I only describes the 
responsibilities of the SCL holder because shipments are made directly 
to customers, not through consignees. There are three levels of ICPs:
    (1) Level I ICP. Examples of activities that may require the 
elements of a Level I ICP include services for customers. Activities 
covered by Level I ICPs do not include reexport of items by the 
receiving company. The Level I ICP must include at least the following 
elements:
    (i) A clear statement of corporate policy communicated to all 
levels of the firm involved in export sales, traffic, and related 
functions, emphasizing the importance of SCL compliance;
    (ii) Methods for screening customers against the Table of Denial 
Orders;
    (iii) A system for assuring compliance with product and country 
restrictions;
    (iv) Evidence that you have no knowledge or reason to believe 
through the normal course of business that the item was delivered 
without the appropriate BXA authorization;
    (v) Identification of export control personnel; and
    (vi) A program for recordkeeping as required by the EAR.
    (2) Level II ICP. This plan requires the SCL holder as well as 
consignees to develop an ICP. A Level II ICP is required when 
authorized activities involve items controlled for proliferation 
reasons, or for end-user activities described in Sec. 752.2(a)(2) of 
this part, such as exporting items subject to the EAR to support 
capital expansion projects. The Level II ICP must include the following 
elements:
    (i) For the SCL holder: (A) A clear statement of corporate policy 
communicated to all levels of the firm involved in export sales, 
traffic, and related functions, emphasizing the importance of SCL 
compliance;
    (B) Identification of positions (and maintenance of current listing 
of individuals occupying the positions) in the license holder firm and 
consignee firms responsible for compliance with the requirements of the 
SCL procedure;
    (C) Methods for screening customers' orders/shipments against the 
Table of Denial Orders (TDO);
    (D) A system for assuring compliance with product and country 
restrictions;
    (E) A system for timely distribution to consignees and verification 
of receipt by consignees of the TDO (Supplement No. 2 to part 764 of 
this subchapter);
    (F) A program for recordkeeping as required by the EAR;
    (G) A system for notifying BXA promptly if the SCL holder has 
knowledge that a consignee is not in compliance with terms of the SCL.
    (H) A system for assuring compliance with controls over missile-
related items and end-uses described in Secs. 742.5 and 744.3 of this 
subchapter;
    (I) A system for assuring compliance with controls over chemical 
precursors and biological agents and related items and end-uses 
described in Secs. 742.2 and 744.4 of this subchapter; and
    (J) A system to screen against customers who are known to have, or 
are suspected of having unauthorized dealings with specially designated 
regions and countries for which non-proliferation controls apply. See 
paragraph (d) of this Section for signs of potential diversion.
    (ii) For consignees: (A) Statement of consignee policy, 
communicated from consignee management to consignee employees, 
directing compliance with provisions of the EAR pertaining to the SCL 
procedure;
    (B) Maintenance of a current list of employees charged with export 
compliance responsibilities.
    (C) A system for screening hardware, software, training and 
servicing transactions against Table of Denial Orders (Supplement No. 2 
to part 764 of this subchapter) and any relevant updates supplied by 
the SCL holder;
    (D) A system for assuring compliance with the product and country 
restrictions for reexports authorized on the Form BXA-752, and for 
exports of products incorporating controlled items received under the 
SCL;
    (E) A program for recordkeeping as required by the EAR; and
    (F) An order processing system that documents employee clearance of 
transactions in accordance with applicable elements described in this 
section.
    (3) Level III ICP. This plan requires the SCL holder as well as 
consignees to develop an ICP. A Level III ICP is generally required in 
instances where the SCL authorizes export of items under an 
international marketing program. It may include various activities and 
generally involves three or more consignees that have been approved in 
advance as foreign distributors and/or users. The elements of a level 
III ICP include:
    (i) For the SCL holder: (A) A clear statement of corporate policy 
communicated to all levels of the firm involved in export sales, 
traffic, and related functions, emphasizing the importance of 
compliance with the SCL;
    (B) Identification of positions (and maintenance of current listing 
of individuals occupying the positions) in the license holder firm and 
consignee firms responsible for compliance with the requirements of the 
SCL procedure;
    (C) A system for timely distribution to consignees and verification 
of receipt by consignees of the Table of Denial Orders (Supplement No. 
2 to part 764 of this subchapter) and other regulatory materials 
necessary to ensure compliance;
    (D) A method for screening customers' orders and shipments of all 
items and activities against the Table of Denial Orders (Supplement No. 
2 to part 764 of this subchapter);
    (E) A system for assuring compliance with product and country 
restrictions, including controls over reexports by consignees and 
direct exports to consignees' customers;
    (F) An internal audit system or compliance review program covering 
the SCL holder and extending to all consignees;
    (G) A system for assuring compliance with the limits on delivery to 
nuclear end-uses and/or end-users as described in Sec. 744.2 of this 
subchapter;
    (H) An on-going program for informing and educating those parties 
in the license holder firm and consignee firms concerning applicable 
regulations, limits and restrictions of the Special License;
    (I) A program for recordkeeping as required by the EAR;
    (J) An order processing system affixing responsibility for all 
required internal control reviews;
    (K) A system for monitoring in-transit shipments and shipments to 
bonded warehouses and free trade zones;
    (L) A system for notifying BXA promptly if the license holder has 
knowledge that a consignee is not in compliance with terms of the SCL;
    (M) A system for assuring compliance with controls over missile-
related items and end-uses described in Secs. 742.5 and 744.3 of this 
subchapter;
    (N) A system for assuring compliance with controls over chemical 
precursors and biological agents and related items and end-uses 
described in Secs. 742.2 and 744.4 of this subchapter; and
    (O) A system to screen against customers who are known to have, or 
are suspected of having unauthorized dealings with specially designated 
regions and countries for which non-proliferation controls apply. See 
paragraph (d) of this section for signs of potential diversion.
    (ii) For consignees: (A) A clear statement of consignee company 
policy, communicated from consignee management to consignee employees, 
[[Page 25371]] directing compliance with provisions of the EAR 
pertaining to the SCL;
    (B) Maintenance of current list of employees charged with export 
compliance responsibilities;
    (C) A system for screening hardware, software, technology, training 
and servicing transactions against Table of Denial Orders and updates 
thereto supplied by the SCL holder;
    (D) A system for assuring compliance with the product and country 
restrictions for reexports authorized on the Form BXA-752, and for 
exports and reexports of items received under the SCL;
    (E) A system for assuring compliance with the limits on delivery to 
nuclear end-uses and/or end-users as described in Sec. 744.2 of this 
subchapter;
    (F) A system for assuring compliance with controls over missile-
related items and end-uses described in Secs. 742.5 and 744.3 of this 
subchapter;
    (G) A system for assuring compliance with controls over chemical 
precursors and biological agents and related items and end-uses 
described in Secs. 742.2 and 744.4 of this subchapter;
    (H) An internal audit program to verify consignee compliance with 
its ICP;
    (I) An education program for employees processing transactions 
involving items received under the procedure;
    (J) A process for screening customers against the diversion risk 
profile described in paragraph (d) of this section;
    (K) A program for recordkeeping as required by the EAR; and
    (L) An order processing system that documents employee clearance of 
transactions in accordance with applicable elements described above.
    (d) Signs of potential diversion. (1) The signs of potential 
diversion that you should take into consideration include, but are not 
limited to, the following:
    (i) Your customer is little known (financial information 
unavailable from normal commercial sources and corporate principals 
unknown by trade sources);
    (ii) Your customer does not wish to use commonly available 
installation and maintenance services;
    (iii) Your customer is reluctant to provide end-use and end-user 
information;
    (iv) Your customer requests atypical payment terms or currencies;
    (v) Customer order amounts, packaging, or delivery routing 
requirements do not correspond with normal industry practice.
    (vi) The performance/design characteristics of the items ordered 
are incompatible with customer's line of business or stated end-use;
    (vii) Your customer provides only a ``P.O. Box'' address or has 
facilities that appear inappropriate for the items ordered;
    (viii) Your customer's order is for parts known to be 
inappropriate, or for which the customer appears to have no legitimate 
need (e.g., there is no indication of prior authorized shipment of 
system for which the parts are sought); and
    (ix) Your customer is known to have, or is suspected of having, 
unauthorized dealings with parties and/or destinations in ineligible 
countries.
    (2) When any of the above characteristics have been identified, but 
through follow-up inquiries or investigation have not been 
satisfactorily resolved, the consignee should not transact any business 
with the customer before contacting the SCL holder. If the SCL holder 
is unable to resolve the problem, the SCL holder should request 
assistance, in writing, from BXA's Special Licensing and Compliance 
Division. The request should explain the basis for the concern 
regarding the proposed customer and seek a determination if there is 
information available on the reliability of the customer (see 
Sec. 752.19 of this part for appropriate addresses). Consignees and 
holders should consider use of a license described in part 748 of this 
subchapter before establishing an ongoing relationship with new 
customers under a SCL.


Sec. 752.13  Recordkeeping requirements.

    (a) Introduction. In addition to the recordkeeping requirements in 
part 762 of this subchapter, the SCL holder and each consignee must 
maintain certain other records for a period of two years beyond the 
expiration date of the SCL. These records must be made readily 
available for review by the BXA upon request by BXA, in accordance with 
the provisions of part 762 of this subchapter.
    (b) License holder and consignees--(1) Form BXA-752. The consignee 
named on the Form BXA-752 must retain the original, validated Forms 
BXA-752 and all applicable attachments. The SCL holder must maintain 
one copy of each validated Form BXA-752 as well as all forms not 
approved.
    (2) Transmittal letter to consignees. The SCL holder and the 
consignee must retain one copy of the transmittal letter required under 
Sec. 752.19(a) of this part and any attachments by the SCL holder and 
the consignee.
    (3) Amendment and notice letters. The SCL holder must retain all 
original, validated copies of amendment and notice letters.
    (4) Export and reexport documentation. (i) License holder. The SCL 
holder must keep, in accordance with the recordkeeping requirements of 
part 762 of this subchapter, all forms, documents, correspondence, 
memoranda, specifications and other records, including invoices, 
shipping documents and orders relating to all exports from the United 
States. Other records that must be kept under part 762 of this 
subchapter include records on special documentation for specific 
destinations, records relating to special conditions on license 
applications, and other records and reports confirming compliance with 
the requirements of the regulations in this subchapter and the SCL.
    (ii) Consignees. All consignees must retain all records of the 
types of activities identified in Sec. 752.3(a)(3). Records on such 
sales or reexports must include the following:
    (A) Full name and address of individual or firm to whom sale or 
reexport was made;
    (B) Full description of each item sold or reexported;
    (C) Units of quantity and value of each item sold or reexported; 
and
    (D) Date of sale or reexport.
    (5) Table of Denial Orders (TDO) and other regulatory materials 
necessary to ensure compliance. Copies of the most current list of 
denied parties TDO (see Supplement No. 2 to part 764 of this 
subchapter) and all other regulatory materials necessary to ensure 
compliance, such as relevant changes to the EAR, product 
classification, and additions, deletions, or other administrative 
changes to the SCL, must be maintained by all parties. Copies of the 
transmittal letters and consignee's confirmations of receipt of these 
materials must also be maintained by both the license holder and the 
consignees.
    (6) ICP. Copies of manuals, guidelines, policy statements, internal 
audit procedures reports, and other documents making up the ICP of each 
party included under a SCL must be maintained on a current basis.


Sec. 752.14  Inspection of records.

    (a) Availability of records. You and all consignees must make 
available all of the records required by Sec. 752.13 of this part for 
inspection, upon request, by BXA or by any other representative of the 
U.S. Government, in accordance with part 762 of this subchapter. 
[[Page 25372]] 
    (b) Relationship of foreign laws. Foreign law may prohibit 
inspection of records by a U.S. Government representative in the 
foreign country where the records are located. In that event, the 
consignee must submit with the required copies of Form BXA-752 an 
alternative arrangement for BXA to review consignee activities and 
determine whether or not the consignee has complied with U.S. export 
control laws and regulations.
    (c) Failure to comply. Parties failing to comply with requests to 
inspect documents may be subject to orders denying export privileges 
described in part 764 of this subchapter or to the administrative 
actions described in part 766 of this subchapter.


Sec. 752.15  Audits.

    (a) Pre-license audits. In addition to the requirement for pre-
license consultation with BXA, BXA may require new SCL applicants (or 
upon extension) to cooperate in pre-license audits to establish the 
firm's credentials and reliability to participate in the SCL procedure. 
This review may also include, but not be limited to, reviews of 
information collected to establish the reliability of proposed 
consignees.
    (b) Post-license audits--(1) Authority of BXA. BXA may conduct 
audits of the SCL holder as well as any consignee. Generally, BXA will 
give reasonable notice to SCL holders and consignees in advance of such 
audits.
    (2) Scope. The audits will involve interviews with officials 
familiar with, or responsible for, SCL compliance, inspection or 
records and the review of ICPs. BXA may conduct special unannounced 
audits if BXA has reason to believe a SCL holder or consignee has 
improperly used or has failed to comply with the SCL regulations and 
conditions. Alleged violations established during the course of audits 
will be referred to BXA's Office of Export Enforcement.
    (c) Mini audits. BXA may require a SCL holder or consignee to 
submit to its office a list of all sales made under the SCL during a 
specified time-frame. Also, from time to time, BXA may request from any 
consignee a list of transactions during a specified, limited period 
involving direct shipments of commodities received under SCLs to 
customers of other consignees and sales to customers in reexport 
territories authorized by BXA on the consignee's validated Form BXA-
752.


Sec. 752.16  Export clearance.

    (a) Shipper's Export Declaration (SED). The SED covering an export 
made under a SCL must be prepared in accordance with standard 
instructions described in Sec. 758.3 of this subchapter. If the SCL 
holder has implemented the Bureau of Census Monthly Reporting System, 
the SCL holder is to comply with the Census requirements. Firms 
authorized to file summary SED reports to the U.S. Census Bureau may, 
on the request of BXA, be required to submit for BXA inspection copies 
of such report applicable to exports under a SCL.
    (1) Item descriptions. Item descriptions on the SED must indicate 
specifically the ECCN and item description conforming to the applicable 
Commerce Control List description and incorporating any additional 
information where required by Schedule B; (e.g., type, size, name of 
specific item, etc.).
    (2) Value of shipments. There is no value limitation on shipments 
under the SCL; however, the value of each shipment must be shown on the 
SED.
    (3) SCL number. The SED must include the SCL Number.
    (4) License number. The SED must include in the lower portion of 
column 10 the SCL number followed by a blank space, and then the 
consignee numerical designation identifying the SCL's approved 
consignee to whom the shipment is authorized. The consignee numbers 
will be assigned by BXA to all approved consignees in order to monitor 
exports.
    (5) Recordkeeping. A copy of the SED must be prepared and retained 
by the exporter for recordkeeping purposes for a period of five years 
after shipment. BXA may require submission of copies of the SEDs upon 
notification.
    (b) Destination control statement--(1) Exports. The U.S. exporter 
must enter a destination control statement on all copies of the bill of 
lading, air way-bill, and the commercial invoice covering exports under 
the SCL, in accordance with the provisions of Sec. 758.6 of this 
subchapter. Use of a destination control statement does not preclude 
the consignee from reexporting to any of the SCL holder's other 
approved consignees or to other countries for which specific prior 
approval has been received from BXA. In such instances, reexport is not 
contrary to U.S. law and, hence is not prohibited. A different 
destination control statement may be required or approved by BXA on a 
case-by-case basis.
    (2) Reexports. See Sec. 752.6(d) of this part for information on 
destination control requirements for reexports of items under the SCL.
    (c) Exports by mail. Exports by mail must be made in accordance 
with the provisions of part 758 of this subchapter. The SCL number must 
be entered on the address side of the wrapper on the package.


Sec. 752.17  Effect of other regulations.

    Insofar as consistent with the provisions of this part 752, all of 
the provisions of the EAR shall apply equally to applications for 
licenses and licenses issued under this part.


Sec. 752.18  Administrative actions.

    (a) General information. Failure to strictly comply with all 
conditions and requirements to the SCL by SCL holders, consignees, U.S. 
suppliers or customers increases the risk of diversion contrary to U.S. 
national and economic interests.
    (b) Administration actions. (1) If BXA is not satisfied that you or 
other parties to the SCL are complying with such conditions and 
requirements, or that control systems employed by parties to such 
licenses are not adequate, BXA may, in addition to any enforcement 
action pursuant to part 764 of this subchapter, take any licensing 
action it deems appropriate, including the following:
    (i) Suspend the privileges under the SCL in whole or in part, or 
impose other restrictions;
    (ii) Revoke the SCL in whole or in part;
    (iii) Prohibit consignees from receiving items covered by the SCL, 
or otherwise restrict their activities;
    (iv) Restrict items that may be shipped under the SCL;
    (v) Require that certain exports or reexports be individually 
authorized by BXA;
    (vi) Restrict parties to whom consignees may sell; and
    (vii) Require that a license holder provide an audit report to BXA 
of selected consignees or overseas operations.
    (2) Whenever necessary to protect the national interest of the 
U.S., BXA may take any licensing action it deems appropriate, without 
regard to contracts or agreements entered into before such action, 
including those described in paragraphs (b)(1) (i) through (vi) of this 
section.
    (c) Appeals. Actions taken pursuant to paragraph (b) of this 
section may be appealed under the provisions of part 756 of this 
subchapter.


Sec. 752.19  BXA mailing addresses.

    (a) Special Licensing and Compliance Division. You should use the 
following addresses when submitting to BXA applications, reports, 
documentation, or other requests required in this part 752: Bureau of 
Export Administration, U.S. Department of Commerce, P.O. Box 273, 
[[Page 25373]] Washington, D.C. 20044, ``Attn: Special Licensing and 
Compliance Division''. If you wish to send the required material via 
overnight courier, use the following address: Bureau of Export 
Administration, U.S. Department of Commerce, 14th and Pennsylvania 
Avenue, N.W., Room 2705, Washington D.C. 20230 ``Attn: Special 
Licensing and Compliance Division''.
    (b) Office of Export Enforcement. Mail all documentation and 
reports submitted to the Office of Export Enforcement under this part 
752 to the following address: Bureau of Export Administration, U.S. 
Department of Commerce, 14th and Pennsylvania Avenue, N.W., Room 4069, 
Washington, D.C. 20230, ``Attn: Office of Export Enforcement''.

Supplement No. 1 to Part 752--Instructions for Completing Forms BXA-
748P and BXA-752 for Requests for Special Comprehensive Licenses--
[Reserved]

PART 754--SHORT SUPPLY CONTROLS

Sec.
754.1  Introduction.
754.2  Crude oil.
754.3  Petroleum products not including crude oil.
754.4  Unprocessed western red cedar.
754.5  Horses for export by sea.
754.6  Registration of U.S. agricultural commodities for exemption 
from short supply limitations on export.
754.7  Petitions for the imposition of monitoring or controls on 
recyclable metallic materials; Public hearings.

Supplement No. 1 to Part 754: Petroleum and Petroleum Products

Supplement No. 2 to Part 754: Unprocessed Western Red Cedar

Supplement No. 3 to Part 754: Statutory Restrictions on Crude Oil

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2410 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 754.1  Introduction.

    (a) Scope. This part implements the provisions of Section 7, 
``Short Supply Controls,'' of the Export Administration Act of 1979, 
and similar provisions in other laws that are not based on national 
security and foreign policy grounds.
    (b) Contents. Specifically, this part deals with the following:
    (1) It sets forth the license requirements and licensing policies 
for commodities that contain the symbol ``SS'' in the ``Reason for 
Control'' part of ``License Requirements'' section of the applicable 
Export Control Classification Number (ECCN) identified on the Commerce 
Control List (Supplement No. 1 to part 774 of this subchapter). In 
appropriate cases, it also provides for License Exceptions from the 
short supply licensing requirements described in this part. The license 
requirements and policies that are set forth in this part, cover the 
following:
    (i) Crude oil described by ECCN 1C81D (Crude petroleum, including 
reconstituted crude petroleum, tar sands, and crude shale oil listed in 
Supplement No. 1 to this part). For specific licensing requirements for 
these items, see Sec. 754.2 of this part.
    (ii) Petroleum products other than crude oil listed in Supplement 
No. 1 to this part, described by the following ECCNs. For specific 
licensing requirements for these items, see Sec. 754.3 of this part.
    (A) ECCN 1C80D (Inorganic chemicals);
    (B) ECCN 1C82D (Other petroleum products);
    (C) ECCN 1C83D (Natural gas liquids and other natural gas 
derivatives); and
    (D) ECCN 1C84D (Manufactured gas and synthetic natural gas (except 
when commingled with natural gas and thus subject to export 
authorization from the Department of Energy)).
    (iii) Unprocessed western red cedar described by ECCN 1C88D 
(Western red cedar (thuja plicata) logs and timber, and rough, dressed 
and worked lumber containing wane listed in Supplement No. 2 to this 
part). For specific licensing requirements for these items, see 
Sec. 754.4 of this part.
    (iv) Horses exported by sea for slaughter covered by ECCN 0A80D 
(Horses for export by sea). For specific licensing requirements, 
Sec. 754.5 of this part.
    (2) It incorporates provisions for the registration of U.S. 
agricultural commodities for exemption from short supply limitations on 
export (see Sec. 754.6 of this part); and
    (3) It incorporates procedures for the filing and review of 
petitions seeking the imposition of monitoring or controls on 
recyclable metallic materials and procedures for related public 
hearings (see Sec. 754.7 of this part).
    (c) Reexports. Reexports of items controlled by this part require a 
license only if such a requirement is specifically set forth in this 
part or is set forth on the license authorizing the export from the 
United States.
    (d) Additional requirements for embargoed destinations. For exports 
involving embargoed destinations, you must satisfy the requirements of 
this part and also of part 746 of this subchapter (Embargoes and Other 
Special Controls).


Sec. 754.2  Crude oil.

    (a) License requirement. As indicated by the SS notation in the 
``License Requirements'' section of ECCN 1C81D on the CCL (Supplement 
No. 1 to part 774 of this subchapter), a license is required for the 
export of crude oil, as defined in paragraph (g) of this Section, to 
all destinations, including Canada.
    (b) License policy. (1) Except as provided in paragraph (c) of this 
section, BXA will generally approve applications to export crude oil if 
BXA determines that the proposed export is consistent with the national 
interest and the purposes of the Energy Policy and Conservation Act.
    (2) Generally, BXA will determine that the following kinds of 
transactions involving the exports of crude oil are in the national 
interest and consistent with the purposes of EPCA:
    (i) Exports from Alaska's Cook Inlet (see paragraph (d) of this 
section);
    (ii) Exports to Canada for consumption or use therein (see 
paragraph (e) of this section);
    (iii) Exports in connection with refining or exchange of strategic 
petroleum reserve oil (see paragraph (f) of this section);
    (iv) The export is part of an overall transaction:
    (A) That will result directly in the importation into the United 
States of an equal or greater quantity and an equal or better quality 
of crude oil;
    (B) That will take place only under contracts that may be 
terminated if the petroleum supplies of the United States are 
interrupted or seriously threatened;
    (C) In which the applicant can demonstrate that, for compelling 
economic or technological reasons that are beyond the control of the 
applicant, the crude oil cannot reasonably be marketed in the United 
States; and
    (D) That the crude oil to be imported into the United States would 
not be available for import if the export had not taken place;
    (v) The export will be part of an overall transaction:
    (A) That will result directly in the importation into the United 
States of a quantity and quality of petroleum products listed, other 
than crude oil in Supplement No. 1 to this part that is not less than 
the quantity and quality of commodities that would be derived from the 
refining of the commodity for which an export license is sought; and
    (B) In which the applicant can demonstrate that, for compelling 
economic or technological reasons that are beyond the control of the 
applicant, [[Page 25374]] the crude oil cannot reasonably be marketed 
in the United States;
    (vi) Exports involving temporary exports or exchanges that are 
consistent with the exceptions from the restrictions of the statutes 
listed in paragraph (c) of this section;
    (vii) Exports that are consistent with international agreements as 
described in the statutes listed in paragraph (c) of this section;
    (viii) Exports that are consistent with findings made by the 
President under an applicable statute, including the statutes described 
in paragraph (c) of this section; and
    (ix) Exports of foreign origin crude oil where, based on written 
documentation satisfactory to BXA, the exporter can demonstrate that 
the oil is not of U.S. origin and has not been commingled with oil of 
U.S. origin.
    (c) Additional statutory restrictions. (1) The following Statutes 
restrict the export of domestically produced crude oil based on its 
place of origin or mode of transport. If such other statutory 
restrictions apply, a license may only be approved if the President 
makes the findings required by the applicable law.
    (i) Section 7(d) of the Export Administration Act of 1979 (50 
U.S.C. App. 2407(d)). Restricts exports of domestically produced crude 
oil transported by pipeline over rights-of-way granted pursuant to 
section 203 of the TransAlaska Pipeline Authorization Act (43 U.S.C. 
1652) (``TAPS'').
    (ii) The Mineral Leasing Act of 1920 restricts exports of 
domestically produced crude oil transported by pipeline over rights-of-
way granted pursuant to section 28 (u) of that Act (30 U.S.C. 185(u)) 
(``MLA'').
    (iii) The Outer Continental Shelf Lands Act restricts exports of 
crude oil produced from the outer Continental Shelf (29 U.S.C. 1354) 
(``OCSLA'').
    (iv) The Naval Petroleum Reserves Production Act restricts the 
export of crude oil produced from the naval petroleum reserves (10 
U.S.C. 7430) (``NPRPA'').
    (2) Supplement No. 3 to this part provides the relevant statutory 
provisions. In cases where a particular statute applies, a Presidential 
finding is necessary before BXA can approve the export. You should note 
that it is possible that more than one statute could apply to a 
particular export of crude oil.
    (d) Exports from Alaska's Cook Inlet. Exports of crude oil that was 
derived from the state-owned submerged lands of Alaska's Cook Inlet and 
has not been, nor will not be, transported by a pipeline over a federal 
right-of-way subject to the MLA or TAPS.<SUP>1

    \1\On November 6, 1985, the Secretary of Commerce determined 
that the export of crude oil derived from State waters in Alaska's 
Cook Inlet is consistent with the national interest and the purposes 
of the Energy Policy and Conservation Act.
---------------------------------------------------------------------------

    (e) Exports to Canada for consumption or use therein. (1) Except 
for crude oil subject to TAPS, the licensing policy is to approve 
applications for exports of crude oil to Canada for consumption or use 
therein.
    (2) The licensing policy for crude oil subject to TAPS is to 
approve applications for an average of no more than 50,000 barrels of 
oil per day for consumption or use in Canada, subject to the following 
procedures and conditions:
    (i) Any ocean transportation of the commodity will be made by 
vessels documented for United States coastwise trade under 46 U.S.C. 
12106. Only barge voyages between the State of Washington and 
Vancouver, British Columbia, and comparable barge movements across 
waters between the U.S. and Canada may be excluded from this 
requirement. The Department of Commerce will determine, in consultation 
with the Maritime Administration, whether such transportation is 
``ocean'' transportation; and
    (ii) Authorization to export such Alaska crude oil will be granted 
on a quarterly basis. Applications will be accepted by BXA no earlier 
than two months prior to the beginning of the calendar quarter in 
question, but must be received no later than the 25th day of the second 
month preceding the calendar quarter. For example, for the calendar 
quarter beginning April 1 and ending June 30, applications will be 
accepted beginning February 1, but must be received no later than 
February 25.
    (iii) The quantity stated on each application must be the total 
number of barrels for the quarter, not a per day rate. This quantity 
must not exceed 50,000 barrels times the number of calendar days in the 
quarter.
    (iv) Each application must include support documents providing 
evidence that the applicant has either:
    (A) Title to the quantity of barrels stated in the application; or
    (B) A contract to purchase the quantity of barrels stated in the 
application.
    (v) The quantity of barrels authorized on each validated license 
for export during the calendar quarter will be determined by the BXA as 
a prorated amount based on:
    (A) The quantity requested on each license application; and
    (B) The total number of barrels that may be exported by all license 
holders during the quarter (50,000 barrels per day multiplied by the 
number of calendar days during the quarter).
    (vi) Applicants may combine their licensed quantities for as many 
as four consecutive calendar quarters into one or more shipments, 
provided that the validity period of none of the affected licenses has 
expired.
    (vii) BXA will carry forward any portion of the 50,000 barrels per 
day quota that has not been allocated during a calendar quarter, except 
that no un-allocated portions will be carried over to a new calendar 
year. The un-allocated volume for a calendar quarter will be added, 
until expended, to the quotas available for each quarter through the 
end of the calendar year.
    (f) Refining or exchange of Strategic Petroleum Reserve Oil. (1) 
Exports of crude oil withdrawn from the Strategic Petroleum Reserve 
(SPR) will be approved if BXA, in consultation with the Department of 
Energy, determines that such exports will directly result in the 
importation into the U.S. of refined petroleum products that are needed 
in the U.S. and that otherwise would not be available for importation 
without the export of the crude oil from the SPR.
    (2) Licenses may be granted to export, for refining or exchange 
outside of the United States, SPR crude oil that will be sold and 
delivered, pursuant to a drawdown and distribution of the SPR, in 
connection with an arrangement for importing refined petroleum products 
into the United States.
    (3) BXA will approve license applications subject to the following 
conditions:
    (i) You must provide BXA evidence of the following:
    (A) A title to the quantity of barrels of SPR crude stated in the 
application; or
    (B) A contract to purchase, for importation, into the United States 
the quantity of barrels of SPR crude stated in the application.
    (ii) The following documentation must be submitted to BXA no later 
than fourteen days following the date that the refined petroleum 
products are imported in the U.S. in exchange for the export of SPR 
crude:
    (A) Evidence that the exporter of the SPR crude has title to or a 
contract to purchase refine petroleum product;
    (B) A copy of the shipping manifest that identifies the refined 
petroleum products; and
    (C) A copy of the entry documentation required by the U.S. Customs 
Service that show the refined petroleum [[Page 25375]] products were 
imported into the United States, or a copy of the delivery receipt when 
the refined petroleum products are for delivery to the U.S. military 
outside of the United States.
    (4) You must complete both the export of the SPR crude and the 
import of the refined petroleum products no later than 30 days 
following the issuance of the export license, except in the case of 
delivery to the U.S. military outside of the United States, in which 
case the delivery of the refined petroleum products must be completed 
no later than the end of the term of the contract with the Department 
of Defense.
    (g) Definition of ``crude oil''. ``Crude oil'' is defined as a 
mixture of hydrocarbons that existed in liquid phase in underground 
reservoirs and remains liquid at atmospheric pressure after passing 
through surface separating facilities and which has not been processed 
through a crude oil distillation tower. Included are reconstituted 
crude petroleum, and lease condensate and liquid hydrocarbons produced 
from tar sands, gilsonite, and oil shale. Drip gases are also included, 
but topped crude oil, residual oil, and other finished and unfinished 
oils are excluded.


Sec. 754.3  Petroleum products not including crude oil.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph in the ``License Requirements'' 
section of ECCNs 1C80D, 1C82D, 1C83D, and 1C84D on the CCL (Supplement 
No. 1 to part 774 of this subchapter), a license is required to all 
destinations, including Canada, for the export of petroleum products, 
excluding crude oil, listed in Supplement No. 1 to this part. See 
paragraph (c) of this section for License Exceptions for non-naval 
petroleum reserves products.
    (b) License policy. (1) Applications for the export of petroleum 
products listed in Supplement No. 1 to this part that were produced or 
derived from the Naval Petroleum Reserves, or that became available for 
export as a result of an exchange for a Naval Petroleum Reserves-
produced or derived commodity, other than crude oil, will be denied, 
unless the President makes a finding required by the Naval Petroleum 
Reserves Production Act (10 U.S.C. 7430).
    (2) Applications that involve temporary exports or exchanges 
excepted from that Act will be approved. See paragraph (c) of this 
section for License Exceptions that apply to non-naval petroleum 
reserve products.
    (c) License Exception for Non-Naval Petroleum Reserve products 
(NPR). Subject to the requirements set forth in this paragraph, License 
Exception NPR may be used to export without a license petroleum 
products that were not produced or derived from the Naval Petroleum 
Reserves or became available for export as a result of an exchange of a 
Naval Petroleum Reserves-produced or derived commodity.
    (1) The requirements and restrictions set forth in Sec. 740.1 and 
Sec. 740.2 of this subchapter that apply to all License Exceptions also 
apply to the use of License Exception NPR.
    (2) A person exporting any item pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-NPR''.


Sec. 754.4  Unprocessed western red cedar.

    (a) License requirement. (1) As indicated by the letters ``SS'' in 
the ``Reason for Control'' paragraph in the ``License Requirements'' 
section of ECCN 1C88D on the CCL Supplement No. 1 to part 774 of this 
subchapter), a license is required to all destinations, including 
Canada, for the export of unprocessed western red cedar covered by ECCN 
1C88D (Western red cedar (thuja plicata) logs and timber, and rough, 
dressed and worked lumber containing wane listed in Supplement No. 2 to 
this part). See paragraph (c) of this section for License Exceptions 
for timber harvested from public lands in the State of Alaska, private 
lands, or Indian lands, and see paragraph (d) of this section for 
relevant definitions.
    (2)(i) Applicants requesting export of unprocessed western red 
cedar must submit a properly completed Form BXA-748P, Multipurpose 
License Form, other documents as may be required by BXA, and a signed 
statement from an authorized representative of the exporter, reading as 
follows:

    I, (Name) (Title) of (Exporter) HEREBY CERTIFY that to the best 
of my knowledge and belief the (Quantity) (cubic meters or board 
feed scribner) of unprocessed western red cedar timber that 
(Exporter) proposes to export was not harvested from State or 
Federal lands under contracts entered into after October 1, 1979,

(Signature)------------------------------------------------------------

(Date)-----------------------------------------------------------------

    (ii) For Items [6] and [7] on Form BXA-748P, ``Various'' may be 
entered when there is more than one purchaser or ultimate consignee.
    (3) For each Form BXA-748P submitted, and for each export shipment 
made under a license, the exporter must assemble and retain for the 
period prescribed in part 762 of this subchapter, and produce or make 
available for inspection, the following:
    (i) A signed statement(s) by the harvester or producer, and each 
subsequent party having held title to the commodities, that the 
commodities in question were harvested under a contract to harvest 
unprocessed western red cedar from State or Federal lands, entered into 
before October 1, 1979; and
    (ii) A copy of the Shipper's Export Declaration.
    (4) A shipping tolerance of 5 percent in cubic feet or board feet 
scribner is allowed on the un-shipped balance of a commodity listed on 
a license. This tolerance applies only to the final quantity remaining 
un-shipped on a license against which more than one shipment is made 
and not to the original quantity authorized by such license.
    (b) Licensing policy. (1) BXA will generally deny applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into after September 30, 
1979.
    (2) BXA will consider, on a case-by-case basis, applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into prior to October 1, 
1979.
    (3) BXA will approve license applications for unprocessed western 
red cedar timber harvested from public lands in Alaska, private lands, 
and Indian lands. Applications must be submitted in accordance with the 
procedures set forth in paragraph (a) of this section. See paragraph 
(c) of this section for the availability of a License Exception.
    (c) License Exception for western red cedar (WRC). (1) Subject to 
the requirements set forth below, License Exception WRC may be used to 
export without a license unprocessed western red cedar timber harvested 
from Federal, State and other public lands in Alaska, all private 
lands, and, lands held in trust for recognized Indian tribes by Federal 
or State agencies.
    (2) Exporters who use License Exception WRC must obtain and retain 
on file the following documents:
    (i) A statement by the exporter (or other appropriate 
documentation) indicating that the unprocessed western red cedar timber 
exported under this License Exception was not harvested from State or 
Federal lands outside the State of Alaska, and did not become available 
for export through substitution of commodities so harvested or 
produced. If the exporter did not harvest or produce the timber, the 
records or statement must identify the harvester or producer and must 
be accompanied by [[Page 25376]] an identical statement from the 
harvester or producer. If any intermediate party or parties held title 
to the timber between harvesting and purchase, the exporter must also 
obtain such a statement, or equivalent documentation, from the 
intermediate party or parties and retain it on file.
    (ii) A certificate of inspection issued by a third party log 
scaling and grading organization, approved by the United States Forest 
Service, that:
    (A) Specifies the quantity in cubic meters or board feet, scribner 
rule, of unprocessed western red cedar timber to be exported; and
    (B) Lists each type of brand, tag, and/or paint marking that 
appears on any log or unprocessed lumber in the export shipment or, 
alternatively, on the logs from which the unprocessed timber was 
produced.
    (3) The requirements and restrictions set forth in Secs. 740.1 and 
740.2 of this subchapter that apply to all License Exceptions also 
apply to the use of License Exception WRC.
    (4) A person exporting any item pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-WRC''.
    (d) Definitions. When used in this section, the following terms 
have the meaning indicated:
    (1) ``Unprocessed western red cedar'' means western red cedar 
(thuja plicata) timber, logs, cants, flitches, and processed lumber 
containing wane on one or more sides, as defined in ECCN 1C88D, that 
has not been processed into:
    (i) Lumber of American Lumber Standards Grades of Number 3 
dimension or better, or Pacific Lumber Inspection Bureau Export R-List 
Grades of Number 3 common or better grades, with a maximum cross 
section of 2,000 square centimeters (310 square inches) for any 
individual piece of processed western red cedar (WRC) being exported, 
regardless of grade;
    (ii) Chips, pulp, and pulp products;
    (iii) Veneer and plywood;
    (iv) Poles, posts, or pilings cut or treated with preservative for 
use as such and not intended to be further processed; and
    (v) Shakes and shingles.
    (2) ``Federal and State lands'' means Federal and State lands, 
excluding lands in the State of Alaska and lands held in trust by any 
Federal or State official or agency for a recognized Indian tribe or 
for any member of such tribe.
    (3) ``Contract harvester'' means any person who, on October 1, 
1979, had an outstanding contractual commitment to harvest western red 
cedar timber from State and Federal lands and who can show by previous 
business practice or other means that the contractual commitment was 
made with the intent of exporting or selling for export in unprocessed 
form all or part of the commodities to be harvested.
    (4) ``Producer'' means any person engaged in a process that 
transforms an unprocessed western red cedar commodity (e.g., western 
red cedar timber) into another unprocessed western red cedar commodity 
(e.g., cants) primarily through a saw mill.


Sec. 754.5  Horses for export by sea.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph of the ``License Requirements'' 
section of ECCN 0A80D on the CCL (Supplement No. 1 to part 774 of this 
subchapter) a license is required for the export of horses exported by 
sea to all destinations, including Canada.
    (b) License policy. (1) License applications for the export of 
horses by sea for the purposes of slaughter will be denied.
    (2) Other license applications will be approved if BXA, in 
consultation with the Department of Agriculture, determines that the 
horses are not intended for slaughter. You must provide a statement in 
the additional information section of the Form BXA-748P, certifying 
that no horse under consignment is being exported for the purpose of 
slaughter.
    (3) Each applications for export may cover only one consignment of 
horses.


Sec. 754.6  Registration of U.S. agricultural commodities for exemption 
from short supply limitations on export.

    (a) Scope. Under the provisions of section 7(g) of the Export 
Administration Act of 1979 (EAA), agricultural commodities of U.S. 
origin purchased by or for use in a foreign country and stored in the 
United States for export at a later date may be registered with BXA for 
exemption from any quantitative limitations on export that may 
subsequently be imposed under section 7 of the EAA for reasons of short 
supply.
    (b) Applications for registration. Applications to register 
agricultural commodities must be submitted by a person or firm subject 
to the jurisdiction of the United States who is acting as a duly 
authorized agent for the foreign purchaser.
    (c) Mailing address. Submit applications pursuant to the provisions 
of section 7(g) of the EAA to: Bureau of Export Administration, U.S. 
Department of Commerce, P.O. Box 273, Washington, D.C. 20230.


Sec. 754.7  Petitions for the imposition of monitoring or controls on 
recyclable metallic materials; Public hearings.

    (a) Scope. Section 7(c) of the Export Administration Act of 1979 
(EAA) provides for the filing and review of petitions seeking the 
imposition of monitoring or controls on recyclable metallic materials.
    (b) Eligibility for filing petitions. Any entity, including a trade 
association, firm or certified or recognized union or group of workers, 
which is representative of an industry or a substantial segment of an 
industry which processes metallic materials capable of being recycled 
with respect to which an increase in domestic prices or a domestic 
shortage, either of which results from increased exports, has or may 
have a significant adverse effect on the national economy or any sector 
thereof, may submit a written petition to BXA requesting the monitoring 
of exports, or the imposition of export controls, or both, with respect 
to such materials.
    (c) Public hearings. The petitioner may also request a public 
hearing. Public hearings may also be requested by an entity, including 
a trade association, firm, or certified or recognized union or group of 
workers, which is representative of an industry or a substantial 
segment of an industry which processes, produces or exports the 
metallic materials which are the subject of a petition.
    (d) Mailing address. Submit petitions pursuant to section 7(c) of 
the EAA to: Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, D.C. 20230.

Supplement No. 1 to Part 754--Petroleum and Petroleum Products.

    This Supplement provides relevant Schedule B numbers and a 
commodity description of the items controlled by ECCNs 1C80D, 1C81D, 
1C82D, 1C83D, and 1C84D.

                               Schedule B                               
------------------------------------------------------------------------
      Number                      Commodity description\1\              
------------------------------------------------------------------------
                               Crude Oil                                
                                                                        
------------------------------------------------------------------------
2709.0710           Crude petroleum (including reconstituted crude      
                     petroleum), tar sands and crude shale oil.         
2710.0710           Petroleum, partly refined for further refining.     
                                                                        
------------------------------------------------------------------------
                           Petroleum Products                           
                                                                        
------------------------------------------------------------------------
2804.29.0010        Helium.                                             
2804.10.0000        Hydrogen.                                           
[[Page 25377]]
                                                                        
2814.20.0000        Ammonia, aqueous.                                   
2811.21.0000        Carbon dioxide and carbon monoxide.                 
2710.00.0550        Distillate fuel oils, having a Saybolt Universal    
                     viscosity at 100& F. of less than 45 seconds.      
2710.00.1007        Distillate fuel oils (No. 4 type) having a Saybolt  
                     Universal viscosity at 100& F. of 45 seconds or    
                     more, but not more than 125 seconds.               
2710.00.1050        Fuel oils, having a Saybolt Universal viscosity at  
                     100& F. of more than 125 seconds.                  
2711.11.0000        Natural gas, methane and mixtures thereof (including
                     liquefied natural gas and synthetic or substitute  
                     natural gas).\2\                                   
2711.14.0000        Ethane with a minimum purity of 95 liquid volume    
                     percent.                                           
2711.12.0000        Propane with a minimum purity of 90 liquid volume   
                     percent.                                           
2711.13.0000        Butane with a minimum purity of 90 liquid volume    
                     percent.                                           
2711.19.0000        Other natural gases (including mixtures), n.s.p.f.  
                     and manufactured gas.                              
2710.00.1510        Gasoline, motor fuel (including aviation).          
2710.00.1520        Jet fuel, naphtha-type.                             
2710.00.1530        Jet fuel, kerosene-type.                            
2710.00.1550        Other motor fuel (including tractor fuel and        
                     stationary turbine fuel).                          
2710.00.2000        Kerosene derived from petroleum, shale oil, natural 
                     gas, or combinations thereof (except motor fuel).  
2710.00.2500        Naphthas derived from petroleum, shale oil, natural 
                     gas, or combinations thereof (except motor fuel).  
2710.00.5030        Mineral oil of medicinal grade derived from         
                     petroleum, shale oil or both.                      
3819.00.0000        Hydraulic fluids, including automatic transmission  
                     fluids.                                            
2710.00.3010        Aviation engine lubricating oil, except jet engine  
                     lubricating oil.                                   
2710.00.3020        Jet engine lubricating oil 475.4520 Automotive,     
                     diesel, and marine engine lubricating oil.         
2710.00.3030        Turbine lubricating oil, including marine.          
2710.00.3040        Automotive gear oils.                               
2710.00.3050        Steam cylinder oils.                                
2710.00.5045        Insulating or transformer oils.                     
2710.00.3070        Quenching or cutting oils.                          
2710.00.3080        Lubricating oils, n.s.p.f., except white mineral    
                     oil.                                               
2710.00.3700        Greases.                                            
2710.00             Carbon black feedstock oil.                         
2712.10.0000        Petroleum jelly and petrolatum, all grades.         
2710.00.5040        White mineral oil, except medicinal grade.          
2710.00.5060        Other non-lubricating and non-fuel petroleum oils,  
                     n.s.p.f.                                           
2814.10.0000        Ammonia, anhydrous.                                 
2712.20.0000        Paraffin wax, crystalline, fully refined.           
2712.90.0000        Paraffin wax, crystalline, except fully refined.    
2712.90.0000        Paraffin wax, all others (including microcrystalline
                     wax).                                              
2517.30.0000        Paving mixtures, bituminous, based on asphalt and   
                     petroleum.                                         
2713.12.0000        Petroleum coke, calcined.                           
2714.               Petroleum asphalt.                                  
2713.11.0000        Petroleum coke, except calcined.                    
------------------------------------------------------------------------
\1\The commodity descriptions provided in this Supplement for the most  
  part reflect those found in the U.S. Department of Commerce, Bureau of
  the Census, (1990 Edition) Statistical Classification of Domestic and 
  Foreign Commodities Exported from the United States (1990 Ed., as     
  revised through Jan. 1994). In some instances the descriptions are    
  expanded or modified to ensure proper identification of products      
  subject to export restriction. The descriptions in this Supplement,   
  rather than Schedule B Number, determine the commodity included in the
  definition of ``Petroleum'' under the Naval Petroleum Reserves        
  Production Act.                                                       
\2\Natural gas and liquefied natural gas (LNG), and synthetic natural   
  gas commingled with natural gas (Schedule B Nos. 2711.11.0000,        
  2711.14.0000, and 2711.19.0000) require export authorization from the 
  U.S. Department of Energy.                                            

Supplement No. 2 to Part 754--Unprocessed Western Red Cedar

    This Supplement provides relevant Schedule B numbers and a 
commodity description of the items controlled by ECCN 1C88D.

                               Schedule B                               
------------------------------------------------------------------------
  Number                                                       Unit of  
   1\1\                  Commodity description               quantity\2\
------------------------------------------------------------------------
200.3516.  Western red cedar (Thuja plicata) logs and                   
            timber.........................................        MBF  
202.2820.  Western red cedar lumber; rough, containing wane        MBF  
202.2840.  Western red cedar lumber; dressed or worked,                 
            containing wane................................       MBF   
------------------------------------------------------------------------
<SUP>1Schedule B Numbers are provided only as a guide to proper completion of
  the Shipper's Export Declaration, Form No. 7525 V.                    
<SUP>2For export licensing purposes, report commodities on Form BXA-748P in  
  units of quantity indicated.                                          

Supplement No. 3 to Part 754--Statutory Restrictions on Exports of 
Crude Oil\1\

Export Administration Act of 1979, as Amended

50 U.S.C. App. 2406(d)

    (d) Domestically produced crude oil.

    \1\The statutory material published in this Supplement is 
provided for the information of the reader only. See the U.S. Code 
for the official text of this material.
---------------------------------------------------------------------------

    (1) Notwithstanding any other provision of this Act and 
notwithstanding subsection (u) of section 28 of the Mineral Leasing Act 
of 1920 (30 U.S.C. 185), no domestically produced crude oil transported 
by pipeline over right-of-way granted pursuant to section 203 of the 
Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652) (except any 
such crude oil which (A) is exported to an adjacent foreign country to 
be refined and consumed therein in exchange for the same quantity of 
crude oil being exported from that country to the United States; such 
exchange must result through convenience or increased efficiency of 
transportation in lower prices for consumers of petroleum products in 
the United States as described in paragraph (2)(A)(ii) of this section, 
or (B) is temporarily exported for convenience or increased efficiency 
of transportation across parts of an adjacent foreign country and 
reenters the United States) may be exported from the United States, or 
any of its territories and possessions, unless the requirements of 
paragraph (d)(2) of this section are met.
    (2) Crude oil subject to the prohibition contained in paragraph (1) 
may be exported only if:
    (A) The President makes and publishes express findings that exports 
of such crude oil, including exchanges:
    (i) Will not diminish the total quantity or quality of petroleum 
refined within, stored within, or legally committed to be transported 
to and sold within the United States; [[Page 25378]] 
    (ii) Will, within 3 months following the initiation of such exports 
or exchanges, result in:
    (A) Acquisition costs to the refiners which purchase the imported 
crude oil being lower than the acquisition costs such refiners would 
have to pay for the domestically produced oil in the absence of such an 
export or exchange; and
    (B) Not less than 75 percent of such savings in costs being 
reflected in wholesale and retail prices of products refined from such 
imported crude oil;
    (iii) Will be made only pursuant to contracts which may be 
terminated if the crude oil supplies of the United States are 
interrupted, threatened, or diminished;
    (iv) Are clearly necessary to protect the national interest; and
    (v) Are in accordance with the provisions of this Act; and
    (B) The President reports such findings to the Congress and the 
Congress, within 60 days thereafter, agrees to a concurrent resolution 
approving such exports on the basis of the findings.
    (3) Notwithstanding any other provision of this section or any 
other provision of law, including subsection (u) of section 28 of the 
Mineral Leasing Act of 1920, the President may export oil to any 
country pursuant to a bilateral international oil supply agreement 
entered into by the United States with such nation before June 25, 
1979, or to any country pursuant to the International Emergency Oil 
Sharing Plan of the International Energy Agency.

Mineral Lands Leasing Act

30 U.S.C. 185(u)

    (u) Limitations on export.
    Any domestically produced crude oil transported by pipeline over 
rights-of-way granted pursuant to this section, except such crude 
oil which is either exchanged in similar quantity for convenience or 
increased efficiency of transportation with persons or the 
government of an adjacent foreign state, or which is temporarily 
exported for convenience or increased efficiency of transportation 
across parts of an adjacent foreign state and reenters the United 
States, shall be subject to all of the limitations and licensing 
requirements of the Export Administration Act of 1979 (50 U.S.C. 
App. 2401 and following) and, in addition, before any crude oil 
subject to this section may be exported under the limitations and 
licensing requirements and penalty and enforcement provisions of the 
Export Administration Act of 1979 the President must make and 
publish an express finding that such exports will not diminish the 
total quantity or quality of petroleum available to the Unites 
States, and are in the national interest and are in accord with the 
provisions of the Export Administration Act of 1979: Provided, That 
the President shall submit reports to the Congress containing 
findings made under this section, and after the date of receipt of 
such report Congress shall have a period of sixty calendar days, 
thirty days of which Congress must have been in session, to consider 
whether exports under the terms of this section are in the national 
interest. If the Congress within this time period passes a 
concurrent resolution of disapproval stating disagreement with the 
President's finding concerning the national interest, further 
exports made pursuant to the aforementioned Presidential finding 
shall cease.

Naval Petroleum Reserves Production Act

10 Sec. 7430(e)

    (e) Any petroleum produced from the naval petroleum reserves, 
except such petroleum which is either exchanged in similar 
quantities for convenience or increased efficiency of transportation 
with persons or the government of an adjacent foreign state, or 
which is temporarily exported for convenience or increased 
efficiency of transportation across parts of an adjacent foreign 
state and reenters the United States, shall be subject to all of the 
limitations and licensing requirements of the Export Administration 
Act of 1979 (50 U.S.C. App. 2401 et seq.) and, in addition, before 
any petroleum subject to this section may be exported under the 
limitations and licensing requirement and penalty and enforcement 
provisions of the Export Administration Act of 1979, the President 
must make and publish an express finding that such exports will not 
diminish the total quality or quantity of petroleum available to the 
United States and that such exports are in the national interest and 
are in accord with the Export Administration Act of 1979.

Outer Continental Shelf Lands Act

43 U.S.C. 1354

    (a) Application of Export Administration provisions.
    Except as provided in subsection (d) of this section, any oil or 
gas produced from the outer Continental Shelf shall be subject to 
the requirements and provisions of the Export Administration Act of 
1969.
    (b) Condition precedent to exportation; express finding by 
President of no increase in reliance on imported oil or gas. Before 
any oil or gas subject to this section may be exported under the 
requirements and provisions of the Export Administration Act of 
1969, the President shall make and publish an express finding that 
such exports will not increase reliance on imported oil or gas, are 
in the national interest, and are in accord with the provisions of 
the Export Administration Act of 1969.
    (c) Report of findings by President to Congress; joint 
resolution of disagreement with findings of President. The President 
shall submit reports to Congress containing findings made under this 
section, and after the date of receipt of such reports Congress 
shall have a period of sixty calendar days, thirty days of which 
Congress must have been in session, to consider whether export under 
the terms of this section are in the national interest. If the 
Congress within such time period passes a concurrent resolution of 
disapproval stating disagreement with the President's finding 
concerning the national interest, further exports made pursuant to 
such Presidential findings shall cease.
    (d) Exchange or temporary exportation of oil and gas for 
convenience or efficiency of transportation. The provisions of this 
section shall not apply to any oil or gas which is either exchanged 
in similar quantity for convenience or increase efficiency of 
transportation with persons or the government of a foreign state, or 
which is temporarily exported for convenience or increased 
efficiency of transportation across parts of an adjacent foreign 
state and reenters the United States, or which is exchanged or 
exported pursuant to an existing international agreement.

PART 756--APPEALS

Sec.
Sec. 756.1  Introduction.
Sec. 756.2  Appeal from an administrative action.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2410 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 756.1  Introduction.

    (a) Scope. This part 756 describes the procedures applicable to 
appeals from administrative actions taken under the Export 
Administration Act of 1979, as amended (EAA) or the Export 
Administration Regulations (EAR). Any person directly and adversely 
affected by an administrative action taken by the U.S. Department of 
Commerce may appeal to the Under Secretary for reconsideration of that 
administrative action. The following types of administrative actions 
are not subject to the appeals procedures set forth in this part 756:
    (1) Issue, amend or revoke or appeal a regulation. (These requests 
may be submitted to the Department at any time.)
    (2) Denial or probation orders, civil penalties, sanctions, or 
other actions under parts 764 and 766 of this subchapter.
    (b) Definitions. The following are definitions of terms used in 
this part 756:
    Administrative action. Any action taken by the U.S. Department of 
Commerce under the EAA or the EAR with respect to a particular person 
including denial of a license application, return without action of a 
license application for other than procedural deficiencies or 
additional information, or classification of an applicant's commodity. 
Administrative actions do not include enforcement actions under part 
764 of this subchapter. [[Page 25379]] 
    Appeal. A request for relief from an administrative action taken by 
the Bureau of Export Administration.
    Appellant. A person, or their representative, requesting relief 
from an administrative action taken by the Bureau of Export 
Administration.
    Person. Any individual, partnership, corporation, or other form of 
association.
    Under Secretary. The term ``Under Secretary'' refers to the Under 
Secretary and any other official delegated authority, by the Under 
Secretary to review and decide an appeal submitted pursuant to 
Sec. 756.2(a)(2) of this part.


Sec. 756.2  Appeal from an administrative action.

    (a) Review and appeal officials. The Under Secretary may delegate 
to the Deputy Under Secretary for Export Administration or to another 
Department of Commerce official the authority to review and decide the 
appeal. In addition, the Under Secretary may designate any Department 
official to be an appeals coordinator to assist in the review and 
processing of an appeal under this part. The responsibilities of an 
appeals coordinator may include presiding over informal hearings.
    (b) Appeal procedures--(1) Filing. An appeal under this part must 
be received by the Under Secretary for Export Administration, Bureau of 
Export Administration, U.S. Department of Commerce, Room H-3886C, 14th 
Street and Pennsylvania Avenue, N.W., Washington, DC 20230, not later 
than 45 days after the date appearing on the written notice of 
administrative action.
    (2) Content of appeal. A full written statement in support of the 
request must be filed with the appeal. The request must include a 
precise statement of why the appellant believes the administrative 
action has a direct and adverse effect and should be reversed or 
modified. The Under Secretary may request additional information that 
would be helpful in resolving the appeal and may accept additional 
submissions. The Under Secretary will not ordinarily accept any 
submission filed more than 30 days after the filing of the appeal or 
any requested submission.
    (3) Request for informal hearing. In addition to the written 
statement submitted in support of an appeal, an appellant may request, 
in writing, at the time an appeal is filed, an opportunity for an 
informal hearing. The Under Secretary may grant or deny a request for 
an informal hearing. All hearings, if granted, will be held in the 
District of Columbia unless the Under Secretary determines, based upon 
good cause shown, that another location would be better.
    (4) Informal hearing procedures. (i) Presentations. The Under 
Secretary will provide an opportunity for the appellant to make an oral 
presentation based on the materials previously submitted by the 
appellant or made available by the Department in connection with the 
administrative action. The Under Secretary may require that any facts 
in controversy be covered by an affidavit or testimony given under oath 
or affirmation.
    (ii) Evidence. The rules of evidence prevailing in courts of law 
will not apply, and all evidentiary material deemed by the Under 
Secretary to be relevant and material to the proceeding, and not unduly 
repetitious, will be received and given appropriate weight.
    (iii) Procedural questions. The Under Secretary has the authority 
to limit the number of people attending the hearing, to impose any time 
or other limitations deemed reasonable, and to determine all procedural 
questions.
    (iv) Transcript. A transcript of an informal hearing will not be 
made, unless the Under Secretary determines that the national interest 
or other good cause warrants it, or the appellant requests a 
transcript. If the appellant requests a transcript, the appellant will 
be responsible for paying all expenses related to production of the 
transcript.
    (v) Report. When the Under Secretary designates another 
Departmental official to conduct an informal hearing, that designee 
will submit a written report containing a summary of the hearing and 
recommended action to the Under Secretary.
    (c) Decisions--(1) Determination of appeals. In addition to the 
documents specifically submitted in connection with the appeal, the 
Under Secretary will consider any recommendations, reports, or relevant 
documents available to the Department of Commerce in determining the 
appeal, but will not be bound by any such recommendation, nor prevented 
from considering any other information, or consulting with any other 
person or groups, in making a determination. The Under Secretary may 
adopt any other procedures deemed necessary and reasonable for 
considering an appeal. The Under Secretary will decide an appeal within 
a reasonable time after receipt of the appeal. The decision will be 
issued to the appellant in writing and contain a statement of the 
reasons for the action.
    (2) Effect of the determination. The decision of the Under 
Secretary will be final.
    (d) Effect of appeal. Acceptance and consideration of an appeal 
will not affect any administrative action, pending or in effect, unless 
the Under Secretary, upon request by the appellant and with opportunity 
for response, grants a stay.

PART 758--GENERAL EXPORT CLEARANCE REQUIREMENTS

Sec.
758.1  General export clearance requirements.
758.2  Use of license.
758.3  Shipper's Export Declaration.
758.4  Conformity of documents for shipments under export licenses.
758.5  General destination control requirements.
758.6  Destination control statements.
758.7  Authority of the Office of Export Enforcement, the Bureau of 
Export Administration, Customs offices and Postmasters in clearing 
shipments.
758.8  Return or unloading of cargo at direction of U.S. Department 
of Commerce or Customs Service.
758.9  Other applicable laws and regulations.
758.1  General export clearance requirements.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2410 et seq.; 46 U.S.C. 466(c); E.O. 12924.
    (a) Responsibility of licensee, exporter and agent. (1) If you are 
issued a Bureau of Export Administration (BXA) license, or you rely on 
a License Exception described in part 740 of this subchapter, you are 
responsible for the proper use of that license or License Exception and 
for the performance of all of its terms and conditions.
    (2) If you export without a license issued by BXA, you are 
responsible for determining that the transaction is outside the scope 
of the EAR or the export is designated as ``No License Required'' or 
``Not on List'', as described in paragraph (a)(3) and (4) of this 
section.
    (3)(i) ``No License Required''. Items that are listed on the 
Commerce Control List (CCL) (Supplement No. 1 to part 774 of this 
subchapter) but that do not require a license by reason of the Commerce 
Country Chart contained in Supplement 1 to part 738 of this subchapter, 
must be designated as ``NLR'', or ``no license required'', on your 
shipping documents in accordance with the provisions of this part.
    (ii) NLR notation. Entering the symbol NLR is a representation to 
the U.S. government that the items being exported are listed on the 
Commerce Control List but do not require a license by reason of the 
Commerce Country Chart (Supplement No. 1 to part 738 of this 
subchapter); that they do not [[Page 25380]] require a license under 
General Prohibitions One (Exports and Reexports in the Form Received), 
Two (Parts and Components Reexports), or Three (Foreign Produced Direct 
Product Reexports); General Prohibitions Four through Ten do not apply 
to the given export, reexport, or other activity; and the items are 
subject to the EAR.
    (4)(i) ``Not on List'' designation. Some items that are not on the 
Commerce Control List are subject to the EAR (see Sec. 732.3 of this 
subchapter). When exporting such items, you must designate them on your 
shipping documents as ``NOL'', or ``not on list'', in accordance with 
the provisions of this part.
    (ii) NOL notation. Entering the symbol NOL is a representation to 
the U.S. government that the items being exported are not listed on the 
Commerce Control List but are subject to the Export Administration 
Regulations and therefore do not require a license under General 
Prohibitions One (Exports and Reexports in the Form Received), Two 
(Parts and Components Reexports), and Three (Foreign Produced Direct 
Product Reexports); General Prohibitions Four through Ten do not apply 
to the given export, reexport, or other activity.
    (5) License Exception symbol. Entering a License Exception symbol 
is a representation to the U.S. Government that the transaction meets 
all of the terms and conditions of the License Exception cited. (See 
part 740 of this subchapter for details regarding License Exceptions)
    (b) Forwarding agent. (1) Authorizing a forwarding agent. A 
forwarding agent is a person the exporter authorizes to perform 
services that facilitate the export described on the Shipper's Export 
Declaration. The agent must be authorized to act on behalf of the 
exporter either for the specific transaction for which he is submitting 
the Shipper's Export Declaration or under a general power of attorney. 
The Foreign Trade Statistics Regulations of the Bureau of the Census 
(15 CFR part 30) set forth the specific requirements for obtaining 
authorization as a forwarding agent.
    (2) Forwarding agent as licensee. If the forwarding agent is 
appointed at the suggestion of a foreign buyer, the seller may insist 
that the agent apply for the export license.
    (3) Record and proof of agent's authority. The power-of-attorney or 
other authorization from the exporter must be retained on file in the 
forwarding agent's office while the authorization is in force and for a 
period of five years after the last action taken by the forwarding 
agent under the authority. During this retention period, the forwarding 
agent must make its delegation of authority from the exporter available 
for inspection on demand, in accordance with the provisions of 
Sec. 762.6 of this subchapter. This recordkeeping and inspection 
requirement also applies to any redelegation of the forwarding agent's 
authority and to any person to whom the forwarding agent redelegates 
its authority. (For further recordkeeping requirements see part 762 of 
this subchapter)
    (c) Responsibility for compliance. Acting through a forwarding 
agent, or other agent or delegation or redelegation of authority, does 
not relieve anyone of responsibility for compliance with this 
subchapter.
    (d) Exports by mail. (1) Exports made under a license issued by the 
Bureau of Export Administration. Before making by mail an export that 
is authorized by a license issued by BXA, you must enter the license 
number on the address side of the parcel and submit a properly executed 
Shipper's Export Declaration (SED) to the post office at the place of 
mailing, when required by these regulations and/or the Foreign Trade 
Statistics Regulations of the U.S. Bureau of the Census.\1\

    \1\The Shipper's Export Declaration (U.S. Department of Commerce 
form 7525-V) may be purchased from the Superintendent of Documents, 
U.S. Government Printing Office, Washington, DC 20402, or it may be 
privately printed. Form 7525-V-Alt (Intermodal), must be privately 
printed. Privately printed forms must strictly conform to the 
official form in all respects. Samples of these forms may be 
obtained from the Bureau of the Census, Washington, DC 20233, local 
Customs offices, and the U.S. Department of Commerce District 
Offices (see list beginning on page ii under Commerce Office 
Addresses).
---------------------------------------------------------------------------

    (2) Shipments without a license. The requirements of this paragraph 
apply whenever you export items that do not require a license under the 
EAR. These requirements apply regardless of whether you ship under one 
of the ``No License Required'' or ``Not On List'' provisions or under a 
License Exception as described in part 740 of this subchapter.
    (i) Shipments to Canada for consumption therein. An SED is not 
required for exports of items to Canada if the items are for 
consumption in Canada and the export transaction does not require a 
license from BXA. Note that if the item you are exporting to Canada is 
controlled by another government agency, the regulations of that agency 
may require you to file a Shipper's Export Declaration.
    (ii) Shipments to Puerto Rico or U.S. territories or possessions. 
Exports of items to Puerto Rico or the U.S. territories or possessions 
do not require a license issued by BXA. However, the regulations of the 
Census Bureau (15 CFR part 30) may still require you to file a 
Shipper's Export Declaration.
    (iii) Shipments valued over $500. When mailing an item from one 
business concern to another where the total value of the items being 
shipped exceeds $500, you must present an executed SED to the post 
office at the place of mailing unless the EAR or the Bureau of the 
Census Foreign Trade Statistics Regulations specifically provide an 
exception to this requirement. If either the exporter or recipient is 
not a business concern, no SED is required.
    (iv) Designation on Shipper's Export Declaration and/or parcel. If 
you are exporting an item that is not listed on the Commerce Control 
List, or one that is listed but for the export of which no license is 
required, or you are exporting pursuant to a License Exception as 
described in part 740 of this subchapter, you must enter the 
appropriate symbol indicating the absence of a license requirement 
(either NLR, meaning ``No License Required'' or NOL meaning ``Not On 
List'') or of the applicable License Exception on the SED and on the 
address side of the parcel along with the phrase ``Export License Not 
Required.'' If your transaction is one for which you are not required 
to file a SED, you must enter the appropriate symbol indicating the 
absence of a license requirement (either NLR, meaning ``No License 
Required'' or NOL meaning ``Not On List'') or of the applicable License 
Exception on the address side of the parcel along with the phrase 
``Export License Not Required.''
    (A) By entering the symbol NLR you are representing to the U.S. 
government that: the items you are exporting are listed on the Commerce 
Control List (See Supplement No. 1 to part 774 of this subchapter) but 
do not require a license by reason of the Country Chart (Supplement No. 
1 to part 738 of this subchapter); that it does not require a license 
under General Prohibitions One (Exports and Reexports in the Form 
Received), Two (Parts and Components Reexports), or Three (Foreign 
Produced Direct Product Reexports); General Prohibitions Four through 
Ten do not apply to the given export, reexport, or other activity; and 
the item is subject to the EAR.
    (B) By entering the symbol NOL, you are representing to the U.S. 
government that the items you are exporting are not listed on the 
Commerce Control List but is subject to the Export Administration 
Regulations and therefore does not require a license under General 
[[Page 25381]] Prohibitions One (Exports and Reexports in the Form 
Received), Two (Parts and Components Reexports), and Three (Foreign 
Produced Direct Product Reexports); General Prohibitions Four through 
Ten do not apply to the given export, reexport, or other activity.
    (C) By entering a License Exception symbol, you are representing to 
the U.S. Government that your transaction meets all of the terms and 
conditions of the License Exception you are using. (See part 740 of 
this subchapter for details regarding License Exceptions)
    (v) Gift parcels. If you are sending a gift parcel to Cuba, North 
Korea or Libya pursuant to the requirements of part 746 of this 
subchapter, you must enter the phrase ``Gift--export license not 
required'' on any customs declaration documents and on the address side 
of the parcel.
    (vi) Software and technology. If you are exporting software or 
technology, the export of which is authorized under the License 
Exceptions set forth in Sec. 740.15 through Sec. 740.18 of this 
subchapter, you do not need to make any notation on the package. If you 
are exporting software or technology that is outside the scope of the 
EAR, check to see if any other agency's regulations require specific 
markings on the package.
    (3) When you enter any of the symbols or phrases referred to in 
paragraph (b) of this section on the documents or packages, you are 
certifying to the post office and to the Bureau of Export 
Administration that you are exporting the package in compliance with 
all of the terms and provisions of the License Exception or other 
authority to export.
    (c) Exports by means other than mail. (1) (i) Exemptions to 
Shipper's Export Declaration. A Shipper's Export Declaration is not 
required for:
    (A) Any shipment, other than a shipment made under a license issued 
by BXA, to any country in Country Group B (See Supplement No. 1 to part 
740 of this subchapter) or to the People's Republic of China if the 
shipment is valued at $2,500 or less per Schedule B Number. The 
schedule B number of an item is that shown in the current edition of 
Schedule B, Statistical Classification of Domestic and Foreign 
Commodities Exported from the United States. As used here ``shipment'' 
means all commodities classified under a single Schedule B Number, 
shipped on the same carrier, from one exporter to one importer;
    (B) Any shipment reported under the provisions of the Monthly 
Reporting Procedure (Sec. 758.3(p) of this part); or
    (C) Any shipment made under any other exception to the Shipper's 
Export Declaration requirements provided elsewhere in this part 758 or 
in part 740 of this subchapter. (A complete list of exceptions to the 
Shipper's Export Declaration requirement is set forth in Subpart D of 
the Bureau of the Census' Foreign Trade Statistics Regulations. See 
Supplement No. 1 to this part 758.)
    (ii) Exceptions from Shipper's Export Declaration requirements.
    (A) Statement on shipping documents. If you are exempt by paragraph 
(c)(1) of this section from the requirement of filing a Shipper's 
Export Declaration, the Bureau of the Census Foreign Trade Statistics 
Regulations (FTSR) (15 CFR Sec. 30.50), require you to make a statement 
on the bill of lading, air waybill, or other loading document 
describing the basis for the exemption and referencing the specific 
section of the FTSR where the exemption is provided, unless the 
exemption is based on value and destination. If the exemption is based 
on the value and destination of your shipment, you must state the basis 
for the exemption, but you do not have to cite a reference to the 
specific section of the FTSR containing the exemption.
    (B) Monthly reporting procedures.
    (1) All forwarders or brokers who use the monthly reporting 
procedures described in FTSR Sec. 30.39 (15 CFR 30.39) on behalf of 
exporters who are not themselves exempt from the individual filing 
requirement must also include on the bill of lading, air waybill 
(including house air waybill), or other loading document either the 
number of and expiration date of an export license issued by the Bureau 
of Export Administration, or the appropriate symbol indicating the 
absence of an export license requirement (either NLR, meaning ``No 
License Required'' or NOL meaning ``Not On List'') or of the applicable 
License Exception from part 740 of this subchapter.
    (2) The notation required by paragraph (c)(1)(ii)(B)(1) of this 
section applies to any bill of lading or other loading document, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, this requirement does not 
apply to a ``master'' bill of lading or other loading document issued 
by a carrier to cover a consolidated shipment. The bill of lading or 
other loading document must be available for inspection along with the 
goods or data prior to lading on the carrier.
    (2) Presentation of declaration. The exporting carrier is 
responsible for the accuracy of the following items of information 
(where required) on the Shipper's Export Declaration:
    (i) Name of carrier (including flag of vessel),
    (ii) U.S. Customs port of export,
    (iii) Method of transportation,
    (iv) Foreign port of unloading,
    (v) Bill of lading or air waybill number, and
    (vi) Whether or not containerized.
    (3) Exports not requiring a license. Even if your shipment does not 
require a license from the Bureau of Export Administration, it may 
still require a Shipper's Export Declaration. Before shipping, check 
the Bureau of the Census Foreign Trade Statistics Regulations for the 
complete Shipper's Export Declaration requirements.
    (d) Shipments transiting Canada en route to other countries.
    (1) Shipments moving under individual Shipper's Export Declaration. 
When an export to a foreign country is made in transit through Canada, 
and the shipment is one for which an individual Shipper's Export 
Declaration is required pursuant to this part 758, the U.S. exporter 
must submit to the Canadian Customs authorities at the Canadian port of 
entry a copy of the U.S. Shipper's Export Declaration, Form 7525-V, 
certified by the exporter as ``A True Copy'' of the original Shipper's 
Export Declaration.
    (i) Shipments for which individual Shipper's Export Declarations 
are not required. When an export to a foreign country is made in 
transit through Canada, and the shipment is one for which an individual 
Shipper's Export Declaration is not required because:
    (A) The forwarder or broker is authorized to report export 
information to Census by means other than an individual Shipper's 
Export Declaration; or
    (B) The shipment qualifies for a specific exemption (listed in 
Subpart D of the Census Bureau Foreign Trade Statistics Regulations), 
the forwarder or broker must include the number of and expiration date 
of the license issued by the Bureau of Export Administration, or the 
appropriate symbol indicating the absence of an export license 
requirement (either NLR, meaning ``No License Required'' or NOL meaning 
``Not On List'') or of the applicable License Exception from part 740 
of these Export Administration Regulations on the bill of lading or 
other loading document as directed in paragraph (c)(2) of this section. 
The properly annotated bill of lading or other loading document, along 
with the license authorization, when required, must be displayed to the 
Canadian Customs authorities at the Canadian [[Page 25382]] port of 
entry and a copy provided, if requested by the Canadian authorities.
    (2) Reserved.


Sec. 758.2  Use of export license.

    (a) License valid for shipment from any port. A license issued by 
BXA authorizes exports from the United States from any U.S. port of 
export unless the license notes otherwise. Items that leave the United 
States at one port, cross adjacent foreign territory, and reenter the 
United States at another port before final export to a foreign country 
will be treated as an export from the last U.S. port of export.
    (b) Shipments against expiring license. (1) Any item that has not 
departed from the last U.S. port of export by midnight of the 
expiration date of the license may not be exported under that license 
unless the shipment meets the requirements of paragraph (b)(1)(i) or 
(ii) of this section are met.
    (i) The Bureau of Export Administration grants an extension; or
    (ii) Prior to midnight of the expiration date of the license, the 
items:
    (A) Were laden aboard the vessel; or
    (B) Were located on a pier ready for loading and not for storage, 
and were booked for a vessel that was at the pier ready for loading; or
    (2) When the vessel is expected to be available at the pier for 
loading before the license expires, but exceptional and unforeseen 
circumstances delay it, the items may be exported without an extension 
of the license, if in the judgment of the U.S. Customs Service or the 
Bureau of Export Administration, undue hardship would otherwise result.
    (c) Reshipment of undelivered items. If the consignee does not 
receive an export made under a license because the carrier failed to 
deliver it, the exporter may reship the same or an identical item in 
the same quantity and of the same value to the same consignee and 
destination under the same license. Before reshipping, the exporter 
must submit to the Office of Exporter Services of the Bureau of Export 
Administration of the U.S. Department of Commerce satisfactory evidence 
of the original export and of the failure to deliver the shipment, 
together with a satisfactory explanation of the delivery failure. If an 
item is to be reshipped to any person other than the original 
consignee, the shipment is deemed to be a new export and is subject to 
all current Export Administration Regulations regarding the specific 
item and destination.


Sec. 758.3  Shipper's Export Declaration.

    (a) Shipper's Export Declaration presentation requirement. Both the 
Foreign Trade Statistics Regulations of the Census Bureau (15 CFR part 
30) and these Export Administration Regulations require that Shipper's 
Export Declarations be submitted to the U.S. government. There are a 
few exceptions to this rule, but if you are required to submit a 
Shipper's Export Declaration you must prepare it in accordance with the 
rules of the Foreign Trade Statistics Regulations (FTSR) and present 
the number of copies specified in the FTSR at the port of export.
    (b) Shipper's Export Declaration is a statement to the U.S. 
government. Your Shipper's Export Declaration is a statement to the 
U.S. government in which you assert that all of the information shown 
on the Shipper's Export Declaration is true. You may execute and submit 
the Shipper's Export Declaration only if you are the exporter or the 
duly authorized forwarding agent of an exporter.
    (c) Limitation on time when Shipper's Export Declaration may be 
used. No one may use a Shipper's Export Declaration to export, or 
facilitate or effect an export, after the expiration of the applicable 
license or after the termination of the applicable License Exception or 
provisions of the Export Administration Regulations that authorize 
export without a license, except as provided in Sec. 750.6(d) of this 
subchapter and Sec. 758.2(b) of this part.
    (d) Additional copies of the Shipper's Export Declaration. You are 
required to submit additional copies of the SED when:
    (1) The Bureau of Export Administration or one of its component 
offices asks you to send it copies of the Shipper's Export Declaration 
for exports:
    (i) Authorized by a license (See paragraph (l) of this section);
    (ii) Authorized by a Special Comprehensive License (See 
Sec. 752.16(a)(5) of this subchapter; or
    (iii) Of items controlled for short supply reasons (See part 754 of 
this subchapter); or
    (iv) Required by Sec. 758.1(d) of this part.
    (2) Reserved.
    (e) Statements on Shipper's Export Declaration. Whenever a SED is 
presented to a carrier, a customs office, or a postmaster, the exporter 
and the person making the presentation represent that:
    (1) All statements and information on the SED have been furnished 
by the exporter or on the exporter's behalf to effect an export under 
the provisions of this subchapter;
    (2) Export of the items described on the SED is authorized under 
the ``No License Required'' or ``Not on List'' provisions of this 
subchapter, a License Exception described in part 740 of this 
subchapter, or the license identified on the SED;
    (3) Statements contained on the SED are consistent with the 
contents of the license or the terms, provisions, and conditions of the 
applicable License Exception or of the applicable ``No License 
Required'' provisions or ``Not on List'' provisions of this subchapter; 
and
    (4) All other terms, provisions, and conditions of the EAR 
applicable to the export have been met.
    (f) Items that may be listed on the same Shipper's Export 
Declaration. (1) General. Except as described in paragraph (f)(2) of 
this section, more than one item may be listed on the same Shipper's 
Export Declaration provided they are contained in one shipment on board 
a single carrier and are going from the same exporter to the same 
consignee. Even if some of the items are being shipped under authority 
of a license and others under a License Exception or the ``No License 
Required'' or ``Not On List'' provisions of this subchapter, they may 
still be shown on one Shipper's Export Declaration. The applicable 
license number and expiration date, License Exception symbol, the ``No 
License Required'' symbol (NLR) or the ``Not on List'' symbol (NOL) 
must be shown under each of the properly aligned line item descriptions 
(including quantity, if required, Schedule B Number, and value) to 
which each authorization applies. The following apply for notations 
made on Shipper's Export Declarations:
    (i) Entering the license number and date is a representation to the 
U.S. government that the transaction is authorized by the license 
cited.
    (ii) Entering a License Exception symbol, or ``NLR'' or ``NOL'' is 
a representation to the U.S. government that the shipment meets one of 
the applicable provisions of paragraphs (a)(3) through (a)(5) of 
Sec. 758.1 to this part.
    (2) Exception. Separate Shipper's Export Declarations must be 
prepared and presented for each vehicle when more than one vehicle is 
used to make the shipment. Customs Directors may waive this requirement 
if a shipment is made under a single bill of lading or other loading 
document and all the items listed on the Shipper's Export Declaration 
are cleared simultaneously.
    (g) Schedule B Number and item description. (1) Schedule B number. 
You must enter the Schedule B number, as shown in the current edition 
of Schedule B, Statistical Classification of [[Page 25383]] Domestic 
and Foreign Commodities Exported from the United States, in the 
designated column of the Shipper's Export Declaration regardless of 
whether the shipment is being exported under authority of a license 
issued by the Bureau of Export Administration, a License Exception 
described in part 740 of this subchapter, or the ``No License 
Required'' or ``Not on List'' provisions of this subchapter.
    (2) Item description for exports under a license. (i) General. If 
your export is being made under the authority of a license issued by 
the Bureau of Export Administration, you must enter the item 
description shown on the license on the Shipper's Export Declaration. 
However, if part of the description on the license is underlined, you 
need place only the underlined portions on the Shipper's Export 
Declaration. The item description on the license will be stated in 
Commerce Control List terms, which may be inadequate to meet Census 
Bureau requirements. In this event, the item description you place on 
the Shipper's Export Declaration must give enough additional detail to 
permit verification of the Schedule B number (e.g., size, material, or 
degree of fabrication).
    (ii) Distinguishing characteristics or specifications. If a 
commodity classification in Schedule B has instructions such as 
``specify by name,'' ``state species,'' etc., you must furnish that 
information in the column of the Shipper's Export Declaration provided 
for the commodity description. When a single Shipper's Export 
Declaration covers more than one item classifiable under a single 
classification carrying the ``specify by name'' or similar requirement, 
you must enter each item separately in this column. However, if more 
than five items are involved, all classifiable under one Schedule B 
number, only the five items of greatest value in the classification 
need be shown separately. Separate quantities, values, and shipping 
weights for individual items are not required in either case.
    (3) Item description for License Exception shipments or shipments 
for which no license is required. For items that may be exported under 
the authority of a License Exception, or are exported under the ``No 
License Required'' or a ``Not on List'' provision of this subchapter, 
you must enter a description in sufficient detail to permit review by 
the U.S. government and verification of the Schedule B number entered 
on the Shipper's Export Declaration.
    (h) License number or other authorization designation. (1) Exports 
under authority of a license issued by the Bureau of Export 
Administration. You must show the license number and expiration date, 
the Export Control Classification Number (ECCN) and the item 
description, in the designated spaces of a Shipper's Export Declaration 
covering an export under a license issued by the Bureau of Export 
Administration (The space for the item description on the SED form may 
be headed ``commodity description''). If you have also included other 
items on the Shipper's Export Declaration that may be exported under a 
License Exception, or under a ``No License Required'' or ``Not on 
List'' provision of this subchapter, you must show the license number 
and expiration date immediately below the specific description 
(quantity, Schedule B, value) of the item(s) to which the license 
applies.
    (2) Exports not needing a license. In addition to the item 
description, the License Exception symbol, ``No License Required'' 
symbol (NLR) or ``Not on List'' symbol (NOL) must be shown in the 
appropriate column of each Shipper's Export Declaration covering a 
shipment under authority of a License Exception (see part 740 of this 
subchapter), or a ``No License Required'' or ``Not on List'' provision 
of this subchapter. If several items, authorized by different License 
Exceptions, ``No License Required'' provisions or ``Not on List'' 
provisions are listed on one declaration, the appropriate symbol for 
each item must be placed under the properly aligned description of that 
item. If the item will be exported under the provisions of License 
Exceptions GBS, CIV, LVS or CSR, the ECCN must also be shown in the 
designated space. The following apply for notations made on Shipper's 
Export Declarations:
    (i) Entering the license number and date is a representation to the 
U.S. government that the transaction is authorized by the license 
cited.
    (ii) Entering a License Exception symbol, or ``NLR'' or ``NOL'' is 
a representation to the U.S. government that the shipment meets one of 
the applicable provisions of paragraphs (a)(3) through (a)(5) of 
Sec. 758.1 to this part.
    (i) Optional Ports of Unlading. (1) Applicability. If, prior to the 
departure of the exporting carrier, the exporter does not know at what 
port the shipment will be unloaded, the exporter may designate optional 
ports of unlading on the SED and bill of lading or air waybill in 
accordance with the provisions of this paragraph. There are 
restrictions on the countries in which these optional ports may be 
located. The restrictions depend on whether the export is authorized 
under the ``No license Required'' or ``Not on List'' provisions of this 
subchapter, the License Exceptions described in part 740 of this 
subchapter, or a license (See paragraph (j)(3) of this section).
    (2) Exemptions. You may never designate an optional port of 
unlading for a shipment destined directly or indirectly to Country 
Group D:1 (except for the People's Republic of China), Libya, Cuba, or 
North Korea.
    (3) Shipments for which no license is required or which are 
authorized by a License Exception. (i) For exports under the authority 
of the ``No License Required'' or ``Not on List'' provisions of this 
subchapter, if the exporter does not know which of several countries in 
Country Group B or the People's Republic of China is the country of 
ultimate destination, the exporter may name optional ports of unlading 
in one or more of these countries.
    (ii) When an export under any License Exception is shipped in 
transit through a country other than the country of ultimate 
destination, the exporter may designate optional ports of unlading in 
one or more countries, together with the name and address of the 
intermediate consignee in each country designated.
    (4) Restrictions on optional ports of unlading. The optional ports 
of unlading, which the exporter designates on the Shipper's Export 
Declaration pursuant to paragraph (i)(3)(i) of this section, must be in 
a country to which the item being unloaded may be exported directly 
from the United States under the same or another applicable ``No 
License Required'' provision, ``Not on List'' provision or License 
Exception to these Export Administration Regulations.
    (5) Shipments under a license issued by the Bureau of Export 
Administration. For exports under a license, optional ports of unlading 
are restricted to the country of ultimate destination, unless either 
the transaction complies with the provisions of Sec. 750.7 of this 
subchapter dealing with continuity of shipments, or the license 
designates intermediate consignees in other countries. In the latter 
case, the optional ports of unlading must be designated as optional 
intransit points on the Shipper's Export Declaration, or if there is no 
Shipper's Export Declaration, on the Shipper's Letter of Instructions, 
or, if there is neither, the optional port of unlading must appear on 
another document containing instructions that the exporter conveys 
(either directly or through an agent) to the carrier, and on the bill 
of lading or air waybill. [[Page 25384]] 
    (6) Correcting the Shipper's Export Declaration. As soon as the 
exporter, or the exporter's forwarding agent or carrier determines at 
which port the shipment is to be unloaded (whether in the country of 
ultimate destination or in a country of transit), that person must 
correct the SED to show the specific port of unloading and the name and 
address of the intermediate consignee to whom delivery is to be made. 
An intermediate consignee must be shown if the port of unloading is 
located in a country other than the country of destination. If the 
export is unloaded at more than one port, the quantity and value 
unloaded at each port and the name and address of each intermediate 
consignee must be given. The procedures for correcting and filing SEDs 
are set forth in Sec. 758.3(n) of this part.
    (j) Signature on Shipper's Export Declaration. The exporter or the 
exporter's authorized forwarding agent, or an authorized employee of 
either, may sign the Shipper's Export Declaration. In general, the 
requisite authority rests with employees who, by their official titles, 
are apparently vested with power to deal with exports, such as export 
managers or such corporate officers as the president, vice president, 
treasurer, and secretary of a corporation, any partner of a 
partnership, and any responsible head of any other form of private or 
quasi-governmental organization, and assistant officers. The signature 
of such person, whether that of the exporter or authorized agent or 
employee, constitutes a representation by the exporter that all 
statements and information in the Shipper's Export Declaration are true 
and correct. In addition, if the signature is that of the forwarding 
agent, or the forwarding agent's duly authorized officer or employee, 
such signature constitutes a like representation by the forwarding 
agent.
    (k) Attachment to Shipper's Export Declaration. If you need 
additional space for any information on the SED, you may use additional 
copies of the Shipper's Export Declaration or copies of the 
continuation sheet. In such cases, only one Shipper's Export 
Declaration need be signed. You must number the additional sheets in 
sequence and securely attach them to the executed Shipper's Export 
Declaration. You must insert the following statements between the 
column provided for marks and numbers of the shipment and the column 
provided for its value:

    This Shipper's Export Declaration consists of this sheet and 
________ continuation sheets.
    No portion of any form attached as a continuation sheet may be 
torn off or removed.

    (l) Special requirements for additional information and documents. 
(1) A license may bear on its face a requirement to submit a Shipper's 
Export Declaration or other documents (or information) to the Office of 
Export Enforcement in addition to that furnished when the application 
was filed. The exporter and the person submitting the documents 
represent that the documents are complete, truthful and accurate. The 
Export Administration Regulations prohibit the making of false 
representations to the U.S. government in any export control matter 
(see Sec. 764.2(g) of this subchapter). The licensee must furnish the 
documents to:

Office of Export Enforcement, Room H-4520, U.S. Department of Commerce, 
14th Street and Constitution Ave. NW., Washington, DC 20230.

    (2) When required, the licensee must:
    (i) Prepare one copy of the SED in addition to the number of copies 
otherwise required;
    (ii) Enter the additional information called for by the license in 
the space between the column provided for marks and numbers of the 
shipment and the column provided for its value on all copies of the 
SED; and
    (iii) Unless otherwise specified on the license, attach the 
required documents (either original or certified copy) to the extra 
copy of the Shipper's Export Declaration.
    (m) Shipper's Export Declaration for shipments moving in-transit. 
(1) Applicability. Use the Shipper's Export Declaration for In-transit 
Goods, Commerce Form 7513,<SUP>2 for the following types of 
transactions:

    \2\Form 7513 may be purchased from the Superintendent of 
Documents, U.S. Government Printing Office, Washington, D.C. 20402, 
the local customs offices, or may be privately printed.
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    (i) Items departing the United States by vessel, which transited 
through, or transshipped in, ports of the United States, destined from 
one foreign country or area to another.
    (ii) Foreign merchandise exported from a General Order Warehouse 
and the export of foreign origin merchandise that was rejected after 
government inspection or examination. Shipments in bond transiting the 
United States being exported by means of any carrier other than a 
vessel may be cleared for export without presenting a Form 7513, unless 
a license is required for the export.
    (2) Exports from Foreign Trade Zones. You may not use Form 7513 for 
any exports from Foreign Trade Zones. Such shipments require the filing 
of the Shipper's Export Declaration (Form 7525-V), unless otherwise 
exempted, with the applicable zone number reported on the Document.
    (3) Additional information. The following additional information 
must be entered on a Shipper's Export Declaration for In-transit Goods:
    (i) The name and address of the intermediate consignee in a foreign 
destination, if any, must be shown below the description of the items.
    (ii) Underneath the name and address of the intermediate consignee, 
one of the following statements, whichever is appropriate, must be 
entered:
    (A) For intransit shipments of foreign-origin merchandise (see part 
772 of this subchapter for a definition of ``foreign-origin,''), enter 
the following statement:

    The merchandise described herein is of foreign origin.

    (B) For intransit shipments of domestic (U.S.) merchandise, enter 
the following statement:

    The merchandise described herein is of the growth, production, 
or manufacture of the United States.

    (C) For intransit shipments of items of U.S. origin eligible for 
License Exception TUS (See Sec. 740.9 of this subchapter), enter the 
following statement:

    The merchandise described herein is of the growth, production, 
or manufacture of the United States, but has been so altered by 
further processing, manufacture, or assembly in a foreign country 
that it has either been substantially enhanced in value, or has lost 
its original identity with respect to form.

    (iii) The items must be described in terms of Schedule B, including 
the appropriate Schedule B number.
    (4) See section 30.8 of the Foreign Trade Statistics Regulations 
(15 CRF 30.8) for additional requirements concerning the information 
that must be placed on a Shipper's Export Declaration for In-transit 
Goods.
    (n) Correction, change, alteration, or amendment of Shipper's 
Export Declaration. (1) Methods of changing declarations. The exporter 
or the exporter's agent must report corrections, cancellations, 
additions or amendments to information reported on SEDs to the Customs 
Director at the port of exportation (or, in the case of mail shipments, 
to the Postmaster at the post office where the shipment was mailed) as 
soon as the need for such changes is determined. See the Foreign Trade 
Statistics Regulations (15 CFR part 30) for additional information 
about how to correct SEDs and file the corrections. If 
[[Page 25385]] you are required by paragraph (l) of this section to 
file a copy of the original SED with the Office of Export Enforcement 
(OEE), a copy of the changed SED should be sent to OEE at the address 
shown in paragraph (l) of this section with the words ``Correction 
Copy'' conspicuously shown in the upper right portion of the form.
    (2) Responsibility. Nothing herein relieves you or any person or 
firm making changes on the Shipper's Export Declaration from 
responsibility for any such changes. Acceptance of a changed Shipper's 
Export Declaration by the Customs office does not imply approval of any 
act involved in the shipment or acceptance of the truth or accuracy of 
the information provided.
    (o) Summary monthly reports in lieu of individual Shipper's Export 
Declarations. (1) Scope. This paragraph contains only basic information 
about the monthly filing procedures for the SED. Details of the 
procedure are set forth in Sec. 30.39 of the Foreign Trade Statistics 
Regulations (FTSR) of the Bureau of the Census (15 CFR Sec. 30.39). 
Exporters interested in the procedure should consult Sec. 30.39 of the 
FTSR to ascertain qualifications, how to apply for the privilege of 
participating, how to file electronically after approval is given, and 
other pertinent facts.
    (2) Applicability. Approved parties may file monthly SEDs with the 
Bureau of the Census for export to Canada and destinations in Country 
Group B (see Supplement No. 1 to part 740 of this subchapter).
    (3) How to request monthly reporting privileges. (i) Addresses. (A) 
A request for the privilege of participating in monthly reporting 
procedures should be forwarded to: Foreign Trade Division, Bureau of 
the Census, Washington, D.C. 20233.

    (B) A copy of all requests must be sent to: Office of Export 
Enforcement, Room H-4616, U.S. Department of Commerce, 14th St. and 
Constitution Ave., N.W., Washington, D.C. 20230.

    (ii) Certification requirements. The request must include the 
following certification by the applicant:

    I (We) certify that I (we) have established adequate internal 
procedures and safeguards to assure compliance with the requirements 
set forth in the U.S. Department of Commerce Export Administration 
Regulations and Foreign Trade Statistics Regulations. Among other 
things, these procedures and safeguards assure:
    (1) A proper determination as to whether a license is required 
for a particular export;
    (2) Actual receipt of the export license, if required, before 
the shipment is exported;
    (3) Compliance with all the terms of the license or License 
Exception, as applicable;
    (4) Return of licenses to the Bureau of Export Administration in 
accordance with Sec. 750.7 of the Export Administration Regulations, 
if requested;
    (5) Compliance with the destination control statement provisions 
of Secs. 758.5 and 758.6 of the Export Administration Regulations;
    (6) Compliance with the prohibition against export transactions 
that involve persons who have been denied U.S. export privileges; 
and
    (7) Compliance with the recordkeeping requirements of part 762 
of the Export Administration Regulations and, in addition, I (we) 
agree that my (our) office records will be made available for 
inspection by the Bureau of the Census, the Bureau of Export 
Administration or the U.S. Customs Service, upon request, to verify 
that a given shipment was properly included in a particular monthly 
report.

    (4) Exporter's agent. If the exporter intends to authorize a 
forwarding agent to file electronically on the exporter's behalf, the 
exporter's request must include the name and address of each such 
forwarding agent.
    (5) Authorization by Census to use monthly reporting procedure. Any 
authorization to file summary monthly reports in lieu of individual 
SEDs may be granted only by the Bureau of the Census with the 
concurrence of BXA.
    (6) Export clearance. (i) Destination control statement. In 
addition to the exporter's responsibility for assuring that the proper 
destination control statement is placed on the commercial invoice as 
required by Sec. 758.6 of this part, the exporter or the exporter's 
forwarding agent is responsible for assuring that the carrier places 
the proper destination control statement on the related bill of lading 
or air waybill.
    (ii) Detention and examination. Shipments being reported under the 
summary filing procedure described in this paragraph are subject to 
inspection, examination and detention, as provided in Sec. 758.8 of 
this part, whenever an official of the Bureau of Export Administration, 
a customs officer, or a postmaster deems such action necessary to 
assure compliance with the Export Administration Regulations.
    (7) Revocation of authorization. An authorization to file summary 
monthly reports in lieu of individual Shipper's Export Declarations, 
granted under the provisions of Sec. 30.39 of the Foreign Trade 
Statistics Regulations (15 CFR Sec. 30.39) and this paragraph, may be 
revoked, suspended, or revised at any time.
    (8) Effect of other provisions. Insofar as consistent with the 
provisions of this paragraph that relate specifically to filing 
electronically in lieu of individual Shipper's Export Declarations, the 
other provisions of this part 758 apply to exports reported under this 
procedure.


Sec. 758.4  Conformity of documents for shipments under export 
licenses.

    (a) Applicability. The rules of conformity set forth in this 
section apply to shipping documents used in connection with any 
shipment under the authority of a license issued by BXA except 
``master'' air waybills issued by consolidators. These rules apply to 
any individual air waybill issued by a consolidator (indirect carrier) 
for an export included in a consolidated shipment and to any air 
waybill issued by anyone in connection with an export not included in a 
consolidated shipment.
    (b) Compliance. You may not issue, prepare, or procure a bill of 
lading that is contrary to the provisions of this section. Officials of 
the Bureau of Export Administration and the U.S. Customs Service are 
authorized to require any document or to use any other appropriate 
methods to ensure compliance with the rules of conformity in this 
section.
    (c) Rules of conformity. (1) General. The following documents must 
be consistent with each other:
    (i) The license issued by BXA;
    (ii) One of the following applicable documents:
    (A) The SED;
    (B) If there is no SED, the Shipper's Letter of Instructions; or
    (C) If there is neither, another document containing instructions 
that the exporter conveys (either directly or through an agent) to the 
carrier, and the outbound bill of lading (including a railroad through 
bill of lading) covering a particular export shipment must be 
consistent with one another.
    (2) Signs of inconsistent documents. The bill of lading, whether in 
negotiable or nonnegotiable form, is not consistent with those other 
documents if:
    (i) It does not provide for delivery of the shipment (cargo) at a 
port located in the country of either the ultimate or intermediate 
consignee named in the documents described in paragraph (c)(1)(ii) of 
this section;
    (ii) It contains any indication that the shipment is intransit to a 
country of ultimate destination different from that named in the 
appropriate one of the documents described in paragraph (c)(1)(ii) of 
this section, or that the shipment is not for consumption in such 
country of ultimate destination. For example, it would be inconsistent 
to consign a shipment to the ultimate destination with a qualifying 
phrase indicating the shipment is ``in transit'' [[Page 25386]] at that 
destination, or to consign the shipment to a free zone or free port;
    (iii) It names as shipper any person other than the licensee (the 
person to whom a license is issued) or the licensee's duly authorized 
forwarding agent. Where shipments from more than one licensee are 
consolidated on a single bill of lading, the shipper named on the bill 
of lading must also appear as the authorized forwarding agent for each 
exporter on each document described in paragraph (c)(1)(ii) of this 
section.
    (iv) The name and address of the ultimate consignee are not shown 
either in the space provided for ``consignee'' or in the body of the 
bill of lading under the caption ``ultimate consignee and notify 
party'' or, in the case of the air waybill, under the caption ``also 
notify.'' However, where shipments to more than one ultimate consignee 
are consolidated on one bill of lading and not all are shown in the 
body of the bill of lading, the name of the intermediate consignee 
(customs broker or consolidator's agent in the foreign country) who 
will receive and distribute the items to the ultimate consignees must 
appear on the bill of lading, the export license(s), and documents 
listed in paragraph (c)(1)(ii) of this section.
    (2) Additional rules for negotiable bills of lading. A negotiable 
bill of lading (an ``order'' bill of lading) is deemed consistent with 
the appropriate one of the documents described in paragraph (c)(1)(ii) 
of this section only if the consignee or order party named on the bill 
of lading is also named in the Shipper's Export Declaration, the 
Shipper's Letter of Instructions or the other document.
    (i) Sometimes ``order'' bills of lading consign the items they 
cover to the order of the shipper, to the order of an intermediate 
consignee such as a bank, foreign freight forwarder, or other 
intermediary, or to the order of a purchaser who is not the same person 
as the ultimate consignee. An ``order'' bill of lading issued in any of 
these forms constitutes a representation by the shipper that:
    (A) The items covered by the appropriate one of the documents 
described in paragraph (c)(1)(ii) of this section and bill of lading 
are ultimately destined to the ultimate consignee stated on the 
license;
    (B) The ``order'' bill of lading has not been used for the purpose 
of evading the terms and conditions of the license; and
    (C) Pursuant to the contract of carriage, the items will be 
delivered at a port located in the country of the ultimate consignee or 
of the intermediate consignee named on the appropriate one of the 
documents described in paragraph (c)(1)(ii) of this section.
    (3) Item description. On the bill of lading the items may be 
described in terms of the freight tariff classification or other type 
of classification, but may not be inconsistent with the description 
shown on the appropriate one of the documents described in paragraph 
(c)(1)(ii). These documents must include the same item description as 
shown on the related license, and, in addition, it must include more 
detailed information where required by the Bureau of the Census.
    (4) Carrier's manifest. If the carrier's outward foreign manifest 
filed with the U.S. customs office contains the names of shippers or 
consignees, these names must not be inconsistent with the names shown 
on the bill of lading and the appropriate one of the documents 
described in paragraph (c)(1)(ii) of this section.


Sec. 758.5  General destination control requirements.

    (a) Scope. This section sets forth some actions the parties to a 
transaction authorized by a license issued by BXA are prohibited from 
taking. The purpose of these prohibitions is to prevent items licensed 
for export from being diverted while in transit or thereafter. It also 
sets forth the duties of the parties when the goods are unloaded in a 
country other than that of the ultimate consignee or intermediate 
consignee as stated on the export license.
    (b) Destination on bill of lading or air waybill. (1) Requirements 
to prevent diversions. (i) Statements on bill of lading or air waybill. 
(A) A carrier (or any other person on behalf of any carrier) may not 
issue a bill of lading or air waybill providing for delivery of cargo 
at any foreign port located outside the country of the ultimate 
consignee, or the intermediate consignee, named on the appropriate one 
of the documents described in Sec. 758.4(c)(1)(ii) of this part.
    (B) Optional ports on bill of lading or air waybill. No carrier may 
issue a bill of lading or air waybill providing for delivery of cargo 
at optional ports to the ultimate consignee named on one of the 
appropriate documents described in Sec. 758.4(c)(1)(i) and (ii) of this 
part where one of such optional ports is not in the country of ultimate 
destination named on the license or Shipper's Export Declaration, or if 
there is no Shipper's Export Declaration, the Shipper's Letter of 
Instructions, or if there is neither, another document containing 
instructions that the exporter conveys (either directly or through an 
agent) to the carrier, without prior written authorization from the 
Bureau of Export Administration. However, where the appropriate 
document described in Sec. 758.4(c)(1)(i) and (ii) of this part provide 
for delivery of cargo to optional intermediate consignees located in 
ports in different countries, the carrier may issue a bill of lading or 
air waybill providing for delivery at such optional ports.
    (2) Delivery of cargo. No carrier may deliver cargo to any country 
other than the country of the ultimate consignee, or the intermediate 
consignee, named on the appropriate one of the documents described in 
Sec. 758.4(c)(1)(ii) at the request or option of the shipper, 
consignor, exporter, purchaser, or ultimate consignee, or their agents, 
or any other person having custody or control of the shipment, without 
prior written authorization from BXA to the carrier or its agent.
    (c) Duties when items are unloaded in a unauthorized country. If 
the items are unloaded in a country other than that of the intermediate 
or ultimate consignee as stated on the appropriate one of the documents 
described in Sec. 758.4(c)(1)(ii) of this part, the procedures 
described in this paragraph must be followed.
    (1) Reasons beyond carrier's control. Nothing contained in this 
subchapter shall be deemed to prohibit a carrier from unloading cargo 
at a port outside the country of intermediate or ultimate destination 
shown on the appropriate one of the documents described in 
Sec. 758.4(c)(1)(ii), where for reasons beyond the control of the 
carrier (as set forth in the standard provisions of the carrier's bill 
of lading or air waybill, such as acts of God, perils of the sea, 
damage to the carrier, strikes, war, political disturbances, or 
insurrections), it is not feasible to deliver the cargo at the licensed 
port of destination.
    (2) Required actions for unscheduled unloading. (i) If the item is 
unloaded in a country to which that item may be exported without a 
license issued by the Bureau of Export Administration, no one is 
required to notify BXA of the unloading. The exporter may dispose of 
the items in that country without approval of the BXA. When making such 
a disposition you must still comply with any conditions or requirements 
of the License Exception or other provisions of the EAR that would 
authorize the export of the item being unloaded to the country in which 
you are disposing of it, and any regulations of other government 
agencies that apply to the transaction. This paragraph does not 
authorize anyone to take any action with knowledge or reason to know 
that a violation of the Export Administration Act, the EAR, or any 
order, license or [[Page 25387]] authorization issued thereunder, has 
occurred, is about to occur or is intended to occur, or to deliver to a 
denied party or to take any other action prohibited by the EAR.
    (ii) If a license issued by the Bureau of Export Administration 
would be required to export the item to the country in which it is 
unloaded:
    (A) No person may take any steps to effect delivery or entry of the 
items into the commerce of the country where unloaded without prior 
approval of the Bureau of Export Administration;
    (B) The carrier must take steps to assure that the items are placed 
in custody under bond or other guaranty not to enter the commerce of 
such country or any country other than the countries of the ultimate 
and intermediate consignees shown on the appropriate one of the 
documents described in Sec. 758.4(c)(1)(ii) of this part, without prior 
approval of BXA;
    (iii) The carrier, the carrier's agent located in the United 
States, and the exporter each have specific responsibilities to notify 
the Bureau of Export Administration regarding any unscheduled 
unloading. The specific responsibilities of each party are as follows:
    (A) The carrier must, within 10 days after date of unloading, 
report the facts to the nearest American Consulate and to the agent of 
the carrier located in the United States. Within 10 days after receipt 
of such report, the agent must send a copy of the report to BXA. The 
report must include:
    (1) A copy of the manifest of such diverted cargo;
    (2) A statement of the place of unloading; and;
    (3) The name and address of the person in whose custody the items 
were delivered.
    (B) BXA will inform the exporter of the unloading. Within 10 days 
following receipt of this notice, the exporter must inform the BXA of 
the proposed disposition of the items. The exporter may not dispose of 
the items without approval of the BXA.


Sec. 758.6  Destination control statements.

    (a) Requirement for destination control statement. One of the 
destination control statements shown in paragraph (b) of this section 
must be entered on all copies of the bill of lading, the air waybill 
and the commercial invoice covering any export made under a license, or 
that is authorized by the following License Exceptions: PTS, GBS, CIV, 
CSR, LVS, NSG, SLV, TUS, or TMP. In addition, if an item would require 
a license to be exported to any destination in County Group D:1, and 
the total value of all such items in a particular shipment exceeds 
$250, a destination control statement found in paragraph (b) of this 
section must be entered on all copies of the bill of lading, the air 
waybill and the commercial invoice covering the export of that item 
even if the export would be authorized by the ``no license required'' 
provision described in Sec. 758.1(a)(2)(i) of this part. An exporter or 
the exporter's agent may enter a destination control statement on the 
shipping documents for exports for which no destination control 
statement is required.
    (b) Text of destination control statement. (1) For exports 
authorized by a license or License Exceptions CSR or NSG, either 
statement 1 or 2 may be used.
    (i) Statement 1. These commodities, technology or software were 
exported from the United States in accordance with the Export 
Administration Regulations for ultimate destination [name of country]. 
Diversion contrary to U.S. law is prohibited.
    (ii) Statement 2. These commodities, technology or software were 
exported from the United States in accordance with the Export 
Administration Regulations for ultimate destination [name of country] 
and may be resold or redistributed in [names of countries]. Diversion 
contrary to U.S. law is prohibited.
    (2) Completion of country information in Statements 1 and 2. (i) 
Shipments authorized by a license. If the shipment is authorized by a 
license, enter the name of the country to which the exports are 
licensed in the blank for ``name of country'' in either statement one 
or two. The country must be the same as the country of ultimate 
destination stated on the license and Shipper's Export Declaration or 
other document described in Sec. 758.4(c)(1)(ii) of this part. If the 
license authorizes resale or redistribution in other countries you may 
use the second statement, in which case, in the space for ``names of 
countries'' enter either the names of the countries to which the 
license authorizes resale or redistribution or you may enter the phrase 
``all countries except'' followed by a list of the countries to which 
the license does not authorize resale or redistribution.
    (ii) Shipments authorized by License Exceptions CSR or NSG. For 
shipments authorized by License Exceptions CSR or NSG, enter the name 
of the country to which you are exporting the item in the blank for 
``name of country''. This country must the same as the country of 
ultimate destination stated on the appropriate document described in 
Sec. 758.4(c)(1)(ii) of this part. If you use Statement 2, enter either 
the names of the countries to which direct exports from the United 
States would be authorized under the License Exception you are using or 
the phrase ``all countries except'' followed by a list of the countries 
to which exports would not be permitted under the License Exception you 
are using.
    (3) Other exports. If the item would require a license to be 
exported to any destination in County Group D:1, but does not require a 
license to be exported to the country to which it is destined and the 
export would not be authorized under License Exceptions CSR or NSG and 
the total value of all such items in a particular shipment exceeds $250 
or if the export is authorized by License Exception GBS or LVS, you may 
use the following statement 3:

    Statement 3: United States law prohibits disposition of these 
items in Cuba, Iraq, Libya, North Korea and other countries as 
stated in Country Group D, Number 1 of the Export Administration 
Regulations, unless otherwise authorized by the United States. 
Diversion to countries, persons or uses contrary to U.S. law is 
prohibited.

    (4) Shipments License Exceptions PTS, CIV, TUS or TMP. If the 
export is authorized by License Exceptions PTS, CIV, TUS, or TMP (see 
part 740 of this subchapter for additional information), you may use 
the following statement:

    Statement 4. United States law prohibits disposition of these 
items in Cuba, Iraq, Libya, or North Korea. Diversion to countries, 
persons or uses contrary to U.S. law is prohibited.

    (5)(i) Special statement for approved consignees under Special 
Comprehensive Licenses. Approved consignees under Special Comprehensive 
Licenses may comply with the requirements of Sec. 752.6(d) of this 
subchapter by using the following statement:

    These items were authorized for export from the United States 
under a Special Comprehensive License procedure on the condition 
that they may not be reexported without prior approval from United 
States authorities.

    (ii) The approved consignee may use more specific wording referring 
to the need for BXA approval. The notice may be translated into an 
appropriate language.
    (c) Responsibility for assuring that the destination control 
statement is used. (1) Exporters. The exporter is responsible for 
assuring entry of the destination control statement on the commercial 
invoice, regardless of whether the exporter actually prepares this 
document. The exporter has this [[Page 25388]] responsibility even if 
the invoice is prepared by an order party or the exporter acts through 
an agent.
    (2) Agents of exporters (forwarding agents). Agents of exporters 
are also responsible for assuring entry of the destination control 
statement on the commercial invoice.
    (i) If the agent receives from the exporter a copy of a commercial 
invoice without the correct destination control statement, the agent 
must:
    (A) Notify the exporter in writing;
    (B) Request written assurance from the exporter that:
    (1) The destination control statement has been properly entered on 
all other copies of the commercial invoice; and
    (2) Any person who received an invoice without the statement has 
been informed in writing of the restrictions set forth in the 
statement;
    (ii) Either:
    (A) Enter the appropriate statement on the agent's copy of the 
invoice; or
    (B) Return it to the exporter for completion; and
    (iii) Keep and make available for inspection, in accordance with 
part 762 of this subchapter, a copy of his notification to the exporter 
and the original of the exporter's assurance required by paragraph 
(c)(2)(i) of this section. (For further recordkeeping requirements, see 
part 762 of this subchapter)
    (iv) If the agent prepares the invoice, the agent's 
responsibilities are governed by paragraph (c)(3) of this section.
    (3) Forwarders, carriers and other parties who prepare invoices. If 
a forwarder, a carrier acting as a forwarder, or any other party 
prepares, presents, and/or executes the invoice, the forwarder, 
carrier, or other party is also responsible for assuring that an 
appropriate statement is entered on the invoice.
    (4) Carriers and other parties who issue bills of lading or air 
waybills. The carrier, or any other party that issues the bill of 
lading or air waybill, is responsible for assuring that the destination 
control statement appearing on the corresponding invoice also appears 
on the bill of lading or air waybill.
    (d) Responsibility for distributing copies of the invoice. The 
exporter or other person issuing any invoice containing a destination 
control statement must promptly send copies to:
    (1) The ultimate consignee and the purchaser named in the 
declaration;
    (2) The intermediate consignee; and
    (3) Any other persons named in the invoice who are located in a 
foreign country. Nothing contained in this part shall be construed to 
limit the persons or classes of persons to whom such invoices, bills of 
lading or air waybills are usually and customarily sent in the course 
of export trade. The shipper or other person issuing the commercial 
invoice may comply with the requirements of this section even if the 
copy of the invoice sent to any of the persons listed in this section 
omits all reference to price or sales commission provided such invoice 
otherwise adequately identifies the shipment. As an alternative in lieu 
of a copy of the commercial invoice, such person may send a copy of the 
bill of lading or air waybill containing the destination control 
statement.
    (e) Requirements for bill of lading or air waybill. (1) General. No 
carrier may issue (and no one may prepare or procure) a bill of lading 
or air waybill covering an export for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of such bill of lading or air waybill 
(including all non-negotiable and office copies) contain the 
destination control statement in clearly legible form.
    (2) Exception for ``master'' air waybills. In the case of shipments 
by air (other than airmail or air parcel post), the requirement of 
paragraph (c)(2)(i) of this section applies to any air waybill, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, the provisions of 
paragraph (e) of this section do not apply to a ``master'' air waybill 
issued by a carrier to cover a consolidated shipment.
    (f) Requirements for the commercial invoice. No licensee, shipper, 
consignor, exporter, agent, or any other person may prepare or issue a 
commercial invoice for a shipment for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of the invoice(s) contain the statement in 
clearly legible form.
    (g) Carrier's responsibility before releasing cargo. No carrier may 
release custody of a shipment covered by the provisions of this section 
to any party without surrender by that party, to the carrier, of a copy 
of the bill of lading or air waybill bearing on its face the applicable 
destination control statement, unless either:
    (1) Simultaneously with the release, the carrier delivers to such 
party a written copy of the destination control statement, contained in 
the carrier's copy of the bill of lading or air waybill for the 
shipment. The written copy must identify the shipment by bill of lading 
or air waybill number, name of carrier, voyage or flight number, date, 
and port of arrival. The carrier must also secure either a signed 
receipted copy of the written statement or other equivalent written 
evidence that the statement has been delivered by the carrier; or,
    (2) The regulations of the importing country require the carrier to 
deliver the items directly into the physical possession and control of 
customs or other government agency for delivery to the consignee or the 
consignee's agent. In this case, the carrier need not give to, or 
receive from, the customs or other government agency, or the consignee 
or the consignee's agent, any document bearing the destination control 
statement.


Sec. 758.7  Authority of BXA, the Office of Export Enforcement, Customs 
offices and Postmasters in clearing shipments.

    (a) Actions to assure compliance with the regulations. Officials of 
BXA, the Office of Export Enforcement, the U.S. Customs Service and 
postmasters, including post office officials, are authorized and 
directed to take appropriate action to assure compliance with the EAR. 
This includes assuring that:
    (1) Exports without a license issued by the Bureau of Export 
Administration are either outside the scope of the license requirements 
of the Export Administration Regulations or authorized by a License 
Exception; and
    (2) Exports purporting to be authorized by licenses issued by the 
Bureau of Export Administration are, in fact, so authorized and the 
transaction complies with the terms of the license.
    (b) Types of actions. The officials designated in paragraph (a) of 
this section are authorized to take the following types of actions:
    (1) Inspection of items. (i) Purpose of inspection. All items 
declared for export are subject to inspection for the purpose of 
verifying the items specified in the Shipper's Export Declaration, or 
if there is no Shipper's Export Declaration, the bill of lading or 
other loading document covering the items about to be exported, and the 
value and quantity thereof, and to assure observance of the other 
provisions of the Export Administration Regulations. This authority 
applies to all exports within the scope of the Export Administration 
Act or Export Administration Regulations whether or not such exports 
require a license issued by BXA. The inspection may include, but is not 
limited to, item identification, technical appraisal (analysis), or 
both.
    (ii) Place of inspection. Inspection shall be made at the place of 
lading or where officials authorized to make those inspections are 
stationed for that purpose. [[Page 25389]] 
    (iii) Technical identification. Where, in the judgment of the 
official making the inspection, the item cannot be properly identified, 
a sample may be taken for more detailed examination or for laboratory 
analysis.
    (A) Obtaining samples. The sample will be obtained by the official 
making the inspection in accordance with the provisions for sampling 
imported merchandise. The size of the sample will be the minimum 
representative amount necessary for identification or analysis. This 
will depend on such factors as the physical condition of the material 
(whether solid, liquid, or gas) and the size and shape of the 
container.
    (B) Notification to exporter and consignee. When a sample is taken, 
the exporter (or the exporter's agent) and the ultimate consignee will 
be notified by letter from one of the officials designated in paragraph 
(a) of this section, showing the port of export, date of sampling, 
export license number (if any) or other authorization, invoice number, 
quantity of sample taken, description of item, marks and packing case 
numbers, and manufacturer's number for the item. The original letter 
will be sent to the exporter or the exporter's agent, the duplicate 
will be placed in the container that had been opened, and the 
triplicate will be retained by the inspecting office.
    (C) Disposal of samples. Samples will be disposed of in accordance 
with the U.S. Customs Service procedure for imported commodities.
    (2) Inspection of documents. (i) General. Officials designated in 
paragraph (a) of this section are authorized to require exporters or 
their agents, and owners and operators of exporting carriers or their 
agents, to produce for inspection or copying: invoices, orders, letters 
of credit, inspection reports, packing lists, shipping documents and 
instructions, correspondence, and any other relevant documents, as well 
as furnish other information bearing upon a particular shipment being 
exported or intended to be exported.
    (ii) Cartridge and shell case scrap. When cartridge or shell cases 
are being exported as scrap (whether or not they have been heated, 
flame-treated, mangled, crushed, or cut) from the United States, the 
U.S. Customs Service is authorized to require the exporter to furnish 
information bearing on the identity and relationships of all parties to 
the transaction and produce a copy of the bid offer by the armed 
services in order to assure that the terms of the Export Administration 
Regulations are being met and that the material being shipped is scrap.
    (3) Questioning of individuals. Officials designated in paragraph 
(a) of this section are authorized to question the owner or operator of 
an exporting carrier and the carrier's agent(s), as well as the 
exporter and the exporter's agent(s), concerning a particular shipment 
exported or intended to be exported.
    (4) Prohibiting lading. Officials designated in paragraph (a) of 
this section are authorized to prevent the lading of items on an 
exporting carrier whenever those officials have reasonable cause to 
believe that the export or removal from the United States is contrary 
to the Export Administration Regulations.
    (5) Inspection of exporting carrier. The U.S. Customs Service is 
authorized to inspect and search any exporting carrier at any time to 
determine whether items data are intended to be, or are being, exported 
or removed from the United States contrary to the Export Administration 
Regulations. Officials of the Office of Export Enforcement may conduct 
such inspections with the concurrence of the U.S. Customs Service.
    (6) Seizure and detention. Customs officers are authorized, under 
Title 22 of the United States Code, section 401, et seq., to seize and 
detain any items whenever an attempt is made to export them in 
violation of the Export Administration Regulations, or whenever they 
know or has probable cause to believe that items are intended to be, 
are being, or have been exported in violation of the EAR. Seized items 
are subject to forfeiture. In addition to the authority of Customs 
officers to seize and detain items, both customs officials and 
officials of the Office of Export Enforcement are authorized to detain 
any shipment held for review of the Shipper's Export Declaration, or if 
there is no Shipper's Export Declaration, the bill of lading or other 
loading document covering the items about to be exported, or for 
physical inspection of the items, whenever such action is deemed to be 
necessary to assure compliance with the EAR.
    (7) Preventing departure of carrier. The U.S. Customs Service is 
authorized under Title 22 of the U.S. Code, section 401, et seq., to 
seize and detain, either before or after clearance, any vessel or 
vehicle or air carrier that has been or is being used in exporting or 
attempting to export item intended to be, being, or having been 
exported in violation of the EAR.
    (8) Ordering the unloading. The U.S. Customs Service is authorized 
to unload, or to order the unloading of, items from any exporting 
carrier, whenever the U.S. Customs Service has reasonable cause to 
believe such items are intended to be, or are being, exported or 
removed from the United States contrary to the EAR.
    (9) Ordering the return of items. If, after notice that an 
inspection of a shipment is to be made, a carrier departs without 
affording the U.S. Customs Service, Office of Export Enforcement, or 
BXA personnel an adequate opportunity to examine the shipment, the 
owner or operator of the exporting carrier and the exporting carrier's 
agent(s) may be ordered to return items exported on such exporting 
carrier and make them available for inspection.
    (10) Designating time and place for clearance. The U.S. Customs 
Service is authorized to designate times and places at which U.S. 
exports may move by land transportation to countries contiguous to the 
United States.


Sec. 758.8  Return or unloading of cargo at direction of U.S. 
Department of Commerce or Customs Service.

    (a) Exporting carrier. As used in this section, the term 
``exporting carrier'' includes a connecting or on-forwarding carrier, 
as well as the owner, charterer, agent, master, or any other person in 
charge of the vessel, aircraft, or other kind of carrier, whether such 
person is located in the United States or in a foreign country.
    (b) Ordering return or unloading of shipment. Where there are 
reasonable grounds to believe that a violation of the Export 
Administration Regulations has occurred, or will occur, with respect to 
a particular export from the United States, the BXA, the Office of 
Export Enforcement, or the U.S. Customs Service may order any person in 
possession or control of such shipment, including the exporting 
carrier, to return or unload the shipment. Such person must, as 
ordered, either:
    (1) Return the shipment to the United States or cause it to be 
returned or;
    (2) Unload the shipment at a port of call and take steps to assure 
that it is placed in custody under bond or other guaranty not to enter 
the commerce of any foreign country without prior approval of the BXA. 
For the purpose of this section, the furnishing of a copy of the order 
to any person included within the definition of exporting carrier will 
be sufficient notice of the order to the exporting carrier.
    (c) Requirements regarding shipment to be unloaded. The provisions 
of Sec. 758.5(b) of this part, relating to reporting, notification to 
BXA, and the prohibition against unauthorized delivery or entry of the 
item data into a foreign country, shall apply also when 
[[Page 25390]] items are unloaded at a port of call, as provided in 
paragraph (b)(2) of this section.
    (d) Notification. Upon discovery by any person included within the 
term ``exporting carrier,'' as defined in paragraph (a) of this 
section, that a violation of the EAR has occurred or will occur with 
respect to a shipment on board, or otherwise in the possession or 
control of the carrier, such person must immediately notify both:
    (1) The Office of Export Enforcement at the following address: Room 
H-4520, U.S. Department of Commerce, 14th Street and Constitution Ave., 
N.W., Washington D.C. 20230, Telephone: (202) 482-1208, Facsimile: 
(202) 482-0964; and
    (2) The person in actual possession or control of the shipment.


Sec. 758.9  Other applicable laws and regulations.

    The provisions of this part 758 apply only to exports regulated by 
the Bureau of Export Administration, U.S. Department of Commerce. 
Nothing contained in this part 758 shall relieve any person from 
complying with any other law of the United States or rules and 
regulations issued thereunder, including those governing Shipper's 
Export Declarations and manifests, or any applicable rules and 
regulations of the U.S. Customs Service.

Supplement No. 2 to Part 778--[Redesignated as Supplement No. 2 to 
Part 742]

    2. Supplement No. 2 to part 778 is redesignated as Supplement No. 2 
to part 742.

Part 769--[Redesignated as Part 760]

    3. Part 769 is redesignated as part 760, and references to ``769'' 
are revised to read ``760'' wherever they appear.
    4. Parts 762, 764, and 766 are added and parts 768, 770, and 772 
are revised to read as follows:

PART 762--RECORDKEEPING

Sec.
762.1  Scope.
762.2  Records to be retained.
762.3  Records exempt from recordkeeping requirements.
762.4  Original records required.
762.5  Reproduction of original records.

762.6  Period of retention.
762.7  Producing and inspecting records.
    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2410 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 762.1  Scope.

    (a) Transactions subject to this part. The recordkeeping provisions 
of this part apply to the following transactions:
    (1) Transactions involving restrictive trade practices or boycotts 
described in part 760 of this subchapter;
    (2) Exports of commodities, software, or technology from the United 
States and any known reexports, transshipment, or diversions of items 
exported from the United States;
    (3) Exports to Canada, if, at any stage in the transaction, it 
appears that a person in a country other than the United States or 
Canada has an interest therein, or that item involved is to be 
reexported, transshipped, or diverted from Canada to another foreign 
country; or
    (4) Any other transactions subject to the Export Administration 
Regulations. This part also applies to all negotiations connected with 
those transactions, except that for export control matters a mere 
preliminary inquiry or offer to do business and negative response 
thereto shall not constitute negotiations, unless the inquiry or offer 
to do business proposes a transaction that a reasonably prudent 
exporter would believe likely lead to a violation of the Export 
Administration Act, the Export Administration Regulations or any order, 
license or authorization issued thereunder.
    (b) Persons subject to this part. Any person subject to the 
jurisdiction of the United States who, as principal or agent (including 
a forwarding agent), participates in any transaction described in 
paragraph (a) of this section, and any person in the United States or 
abroad who is required to make and maintain records under any provision 
of the Export Administration Regulations, shall keep and maintain all 
records described in Sec. 762.2 of this part, that are made or obtained 
by that person, and shall produce them in a manner provided by 
Sec. 762.6 of this part.


Sec. 762.2  Records to be retained.

    (a) Records required to be retained. The records required to be 
retained under this part 762 include the following:
    (1) Export control documents, as defined in part 772 of this 
subchapter;
    (2) Memoranda;
    (3) Notes;
    (4) Correspondence;
    (5) Contracts;
    (6) Invitations to bid;
    (7) Books of account;
    (8) Financial records;
    (9) Restrictive trade practice or boycott documents and reports, 
and
    (10) Other records pertaining to the types of transactions 
described in Sec. 762.1(a) of this part, or that are made or obtained 
by a person described in Sec. 762.1(b) of this part.
    (b) Additional record retention requirements. In addition to the 
records required to be retained by paragraph (a) of this section, other 
sections of the Export Administration Regulations require the retention 
of records including, but not limited to part 734 and Sec. 736.14, 
Sec. 740.1, Sec. 740.20, Supplement No. 4 to part 742, Secs. 746.17, 
748.6, 748.7, 748.10, 748.11, 748.13, 748.14, 750.7, 750.8, 750.9, 
750.10, 752.5, 752.7, 752.10, 752.11, 752.12, 752.13, 752.14, 752.15, 
752.16, 754.4, 758.3, 758.6, 760.6, 762.2, 764.2, 764.5, and 766.10.


Sec. 762.3  Records exempt from recordkeeping requirements.

    (a) The following types of records have been determined to be 
exempt from the recordkeeping requirement procedures:
    (1) Export information page;
    (2) Special export file list;
    (3) Vessel log from freight forwarder;
    (4) Inspection certificate;
    (5) Warranty certificate;
    (6) Guarantee certificate;
    (7) Parking material certificate;
    (8) Goods quality certificate;
    (9) Notification to customer of advance meeting;
    (10) Letter of indemnity;
    (11) Financial release form;
    (12) Financial hold form;
    (13) Export parts shipping problem form;
    (14) Draft number log;
    (15) Expense invoice mailing log;
    (16) Financial status report;
    (17) Bank release of guarantees;
    (18) Cash sheet;
    (19) Commission payment back-up;
    (20) Commissions payable worksheet;
    (21) Commissions payable control;
    (22) Check request forms;
    (23) Accounts receivable correction form;
    (24) Check request register;
    (25) Commission payment printout;
    (26) Engineering fees invoice;
    (27) Foreign tax receipt;
    (28) Individual customer credit status;
    (29) Request for export customers code forms;
    (30) Acknowledgement for receipt of funds;
    (31) Escalation development form;
    (32) Summary quote;
    (33) Purchase order review form;
    (34) Proposal extensions;
    (35) Financial proposal to export customers; and
    (36) Sales summaries.
    (b) Reserved.


Sec. 762.4  Original records required.

    The regulated person must maintain the original records in the form 
in [[Page 25391]] which he or she receives or creates them unless he or 
she meets all of the conditions of Sec. 762.5 of this part relating to 
reproduction of records.


Sec. 762.5  Reproduction of original records.

    (a) The regulated person may maintain reproductions instead of the 
original records provided all of the requirements of paragraph (b) of 
this section are met.
    (b) In order to maintain the records required by Sec. 762.2 of this 
part, the regulated persons defined in Sec. 762.1 may use any 
photographic, photostatic, miniature photographic, micrographic, 
automated archival storage, or other process that completely, 
accurately, and durably reproduces the original records (whether on 
paper, microfilm, or through electronic digital storage techniques). 
The process must meet all of the following requirements, which are 
applicable to all systems:
    (1) The system must be capable of reproducing all records on paper.
    (2) The system must record and be able to reproduce all marks, 
information, and other characteristics of the original record, 
including both obverse and reverse sides of paper documents.
    (3) When displayed on a viewer, monitor, or reproduced on paper, 
the records must exhibit a high degree of legibility and readability. 
(For purposes of this section, legible and legibility mean the quality 
of a letter or numeral that enable the observer to identify it 
positively and quickly to the exclusion of all other letters or 
numerals. Readable and readability mean the quality of a group of 
letters or numerals being recognized as complete words or numbers.)
    (4) The system must preserve the initial image (including both 
obverse and reverse sides of paper documents) and record all changes, 
who made them and when they were made. This information must be stored 
in such a manner that none of it may be altered once it is initially 
recorded.
    (5) The regulated person must establish written procedures to 
identify the individuals who are responsible for the operation, use and 
maintenance of the system.
    (6) The regulated person must establish written procedures for 
inspection and quality assurance of records in the system and document 
the implementation of those procedures.
    (7) The system must be complete and contain all records required to 
be kept by this part or the regulated person must provide a method for 
correlating, identifying and locating records relating to the same 
transaction(s) that are kept in other record keeping systems.
    (8) The regulated person must keep a record of where, when, by 
whom, and on what equipment the records and other information were 
entered into the system.
    (9) Upon request by the Office of Export Enforcement, the Office of 
Antiboycott Compliance, or any other agency of competent jurisdiction, 
the regulated person must furnish, at the examination site, the 
records, the equipment and, if necessary, knowledgeable personnel for 
locating, reading, and reproducing any record in the system.
    (c) Requirements applicable to systems based on the storage of 
digital images. For systems based on the storage of digital images, the 
system must provide accessibility to any digital image in the system. 
With respect to records of transactions, including those involving 
restrictive trade practices or boycott requirements or requests. The 
system must be able to locate and reproduce all records relating to a 
particular transaction based on any one of the following criteria:
    (1) The name(s) of the parties to the transaction;
    (2) Any country(ies) connected with the transaction; or
    (3) A document reference number that was on any original document.
    (d) Requirements applicable to a system based on photographic 
processes. For systems based on photographic, photostatic, or miniature 
photographic processes, the regulated person must maintain a detailed 
index of all records in the system that is arranged in such a manner as 
to allow immediate location of any particular record in the system.


Sec. 762.6  Period of retention.

    (a) Five year retention period. All records required to be kept by 
this subchapter must be retained for five years from the latest of the 
following times:
    (1) The export from the United States of the item involved in the 
transaction to which the records pertain;
    (2) Any known reexport, transshipment, or diversion of such item;
    (3) Any other termination of the transaction, whether formally in 
writing or by any other means; or
    (4) In the case of records of pertaining to transactions involving 
restrictive trade practices or boycotts described in part 760 of this 
subchapter, the date the regulated person receives the boycott related 
request or requirement.
    (b) Destruction or disposal of records. If the Bureau of Export 
Administration or any other government agency makes a formal or 
informal request for a certain record or records, such record or 
records may not be destroyed or disposed of without the written 
authorization of the agency concerned. This prohibition applies even if 
such records have been retained for a period of time exceeding that 
required by paragraph (a) of this section.


Sec. 762.7  Producing and inspecting records.

    (a) Persons located in the United States. Persons located in the 
United States may be asked to produce records that are required to be 
kept by any provision of the Export Administration Regulations, or any 
license, order, or authorization issued thereunder and to make them 
available for inspection and copying by any authorized agent, official, 
or employee of the Bureau of Export Administration, the U.S. Customs 
Service, or the U.S. Government, without any charge or expense to such 
agent, official, or employee. The Office of Export Enforcement and the 
Office of Antiboycott Compliance encourage voluntary cooperation with 
such requests. When voluntary cooperation is not forthcoming, the 
Office of Export Enforcement and the Office of Antiboycott Compliance 
are authorized to issue subpoenas for books, records, and other 
writings. In instances where a person does not comply with a subpoena, 
the Department of Commerce may petition a district court to have a 
subpoena enforced.
    (b) Persons located outside of the United States. Persons located 
outside of the United States that are required to keep records by any 
provision of the Export Administration Regulations or by any license, 
order, or authorization issued thereunder shall produce all records or 
reproductions of records required to be kept, and make them available 
for inspection and copying upon request by an authorized agent, 
official, or employee of the Bureau of Export Administration, the U.S. 
Customs Service, or a Foreign Service post, or by any accredited 
representative of the U.S. Government, without any charge or expense to 
such agent, official or employee.

PART 764--ENFORCEMENT

Sec.
764.1 Introduction.
764.2 Violations.
764.3 Sanctions.
764.4 Reporting of violations.
764.5 Voluntary self-disclosure. [[Page 25392]] 
Supplement No. 1 to Part 764--Standard Terms of Orders Denying 
Export Privileges
Supplement No. 3 to Part 764--Denied Persons List

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2410 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 764.1  Introduction.

    This part describes conduct which constitutes a violation of the 
Export Administration Act (EAA) and/or the Export Administration 
Regulations (EAR), and sets forth the sanctions that may be imposed for 
such violations. Although the violations and sanctions set forth in 
this part may be applicable to antiboycott cases, other antiboycott 
violations are identified in part 760 of this subchapter. This part 
explains administrative sanctions that may be imposed by Bureau of 
Export Administration (BXA) and criminal sanctions that may be imposed 
by a United States court, and also refers to protective administrative 
measures, as well as to other sanctions which are neither 
administrative nor criminal. Information is provided on how to report 
and disclose violations.


Sec. 764.2  Violations.

    (a) Engaging in prohibited conduct. No person may engage in any 
conduct prohibited by, or refrain from engaging in any conduct required 
by, the EAA, the EAR, or any order, license or authorization issued 
thereunder.
    (b) Causing, aiding and abetting a violation. No person may cause, 
or aid, abet, counsel, command, induce, procure, or permit the doing of 
any act prohibited, or the omission of any act required, by the EAA, 
the EAR, or any order, license or authorization issued thereunder.
    (c) Solicitation and attempt. No person may do any act that 
solicits the commission of, or that constitutes an attempt to bring 
about, a violation of the EAA, the EAR, or any order, license or 
authorization issued thereunder.
    (d) Conspiracy. No person may conspire or act in concert with one 
or more persons in any manner or for any purpose to bring about or to 
do any act that constitutes a violation of the EAA, the EAR, or any 
order, license or authorization issued thereunder.
    (e) Acting with knowledge of a violation. No person may order, buy, 
remove, conceal, store, use, sell, loan, dispose of, transfer, 
transport, finance, forward, or otherwise service, in whole or in part, 
any items exported or to be exported from the United States, or which 
is otherwise subject to the EAR, with knowledge or reason to know that 
a violation of the EAA, the EAR, or any order, license or authorization 
issued thereunder, has occurred, is about to occur, or is intended to 
occur.
    (f) Possession with intent to export illegally. No person may 
possess any items controlled for national security or foreign policy 
reasons under sections 5 or 6 of the EAA: (1) with intent to export 
such items in violation of the EAA, the EAR, or any order, license or 
authorization issued thereunder, or (2) with knowledge or reason to 
know that the items would be so exported.
    (g) Misrepresentation and concealment of facts.
    (1) No person may make any false or misleading representation, 
statement, or certification, or falsify or conceal any material fact, 
whether directly to BXA, the United States Customs Service, or an 
official of any other United States agency, or indirectly to any of the 
foregoing through any other person or any foreign government agency or 
official:
    (i) In the course of an investigation or other action subject to 
the EAR; or
    (ii) In connection with the preparation, submission, issuance, use, 
or maintenance of any export control document, or restrictive trade 
practice or boycott request report, as defined in Sec. 760.6 of this 
subchapter; or
    (iii) For the purpose of or in connection with effecting an export 
from the United States, the reexport, transshipment, or diversion of 
any such export, or any other activity subject to the EAR.
    (2) All representations, statements, and certifications made by any 
person are deemed to be continuing in effect. Every person who has made 
any representation, statement, or certification must notify BXA and any 
other relevant agency(ies), in writing, of any change of any material 
fact or intention from that previously represented, stated, or 
certified, immediately upon receipt of any information which would lead 
a reasonably prudent person to believe that a change of material fact 
or intention has occurred or may occur in the future.
    (h) Evasion. No person may engage in any transaction or take any 
other action, either independently or through any other person, with 
intent to evade the provisions of the EAA, the EAR, or any order, 
license or authorization issued thereunder.
    (i) Failure to comply with reporting, recordkeeping requirements. 
No person may fail or refuse to comply with any reporting or 
recordkeeping (see part 762 of this subchapter) requirements in 
violation of the EAA, the EAR, or any order, license or authorization 
issued thereunder.
    (j) Misuse of license, export control documents. (1) Unauthorized 
use and alteration. Except as specifically authorized in the EAR or in 
writing by BXA, no licensee or other person may obtain, use, alter, 
assist in, or permit the use or alteration of any export control 
document for the purpose of, or in connection with, facilitating or 
effecting any export or reexport other than that set forth in such 
document and in accordance with all the terms, provisions, and 
conditions thereof.
    (2) Trafficking and advertising export control documents. Without 
prior written approval of the BXA, no person may do any of the 
following with respect to any export or reexport in connection with any 
export control document:
    (i) Effect any transfer of, or other change in the authority 
granted in such document, whether by sale, grant, gift, loan or 
otherwise, to any person; permit any person to use an export control 
document other than for the true account of and as true agent in fact 
for the licensee; or, if that person is not the licensee, to receive or 
accept a transfer or other change of the authority granted in, or 
otherwise use an export control document except for the true account of 
and as true agent in fact for the licensee.
    (ii) Effect any change of, substitution for, or addition to, the 
parties named in an export control document; or transfer, obtain, 
purchase, or create any interest or participation in the transaction 
described in any export control document.
    (iii) Offer or solicit by advertisement, circular, or other 
communication any transfer or change of an export control document or 
any interest therein prohibited above. Such communication shall be 
deemed unlawful:
    (A) Even though coupled with a condition requiring approval by BXA 
of a new consignor or consignee or other change in the export license, 
by way of transfer or otherwise;
    (B) Where, in offering or soliciting the sale for export of any 
items, the communication indicates that the proposed seller of such 
items holds or will furnish a license or other export control document 
for the export of such items;
    (C) Where, in offering or soliciting the purchase for export of any 
items, that communication is addressed by the proposed buyer directly 
or indirectly to any person on the condition that such person as a 
seller then holds or will [[Page 25393]] furnish a license or other 
export control document for the export of those items.
    (iv) Other unlawful practices. It is unlawful:
    (A) For a licensee or other person holding an export control 
document to sell or offer to sell, or for any person to purchase or to 
offer to purchase, the items described in such document with the 
understanding that the document may be used by or for the benefit of 
the purchaser to effect export of those items;
    (B) For any person to effect the export of the commodities referred 
to in Sec. 764.2(j)(2) of this part for the benefit of or ``for the 
account'' of any person other than the licensee, regardless of the 
device, means, or fiction employed;
    (C) For the licensee to act fictitiously as principal or agent of 
another person who actually is effecting the export, or for such other 
person to act fictitiously as the licensee's principal or agent for the 
same purpose;
    (D) For the named consignee to act ``for the account'' of a new 
unlicensed consignee; or
    (E) For any person to use a license, originally issued for a 
specified transaction which was not effected, for any other transaction 
without the specific written authorization from BXA.
    (k) Acting contrary to the terms of a denial order. No person may 
take any action that is prohibited by the terms or conditions of a 
denial order.


Sec. 764.3  Sanctions.

    (a) Administrative. Violations of the EAA, the EAR, or any order, 
license or authorization issued thereunder are subject to the 
administrative sanctions set forth in this section, and to any other 
liability, sanction or penalty available under law. Administrative 
sanctions for violations, which are imposed pursuant to the 
administrative enforcement procedures set forth in part 766 of this 
subchapter, are separate and distinct from protective administrative 
measures taken by BXA, such as temporary denial orders, license 
suspension and revocation, and suspension of eligibility for license 
exceptions, all of which are inherent in the exercise of BXA's 
regulatory and licensing authority, but not all of which are subject to 
part 766 administrative enforcement procedures.
    (1) Civil penalty. (i) In addition to, or instead of, any or all of 
the administrative sanctions described in this section, a civil penalty 
not to exceed $10,000 for each violation of the EAA, the EAR, or any 
order, license or authorization thereunder may be imposed, except that 
a civil penalty not to exceed $100,000 may be imposed for each 
violation of the EAA, the EAR, or any order, license or authorization 
thereunder involving national security controls imposed under section 5 
of the EAA.
    (ii) The payment of any civil penalty imposed may be made a 
condition, for a period not exceeding one year after the imposition of 
such penalty, to the granting, restoration, or continuing validity of 
any export license, license exception, permission, or privilege granted 
or to be granted to the person upon whom such penalty is imposed. 
Moreover, the payment of any penalty imposed may be deferred or 
suspended in whole or in part for a period of time no longer than any 
probation period (which may exceed one year) that may be imposed upon 
such person. Such deferral or suspension shall not operate as a bar to 
the collection of the penalty in the event that the conditions of the 
suspension, deferral, or probation are not fulfilled.
    (2) Denial of export privileges. An order may be issued in 
accordance with the procedures in part 766 of this subchapter that 
restricts the ability of the named persons to engage in export-related 
transactions involving items subject to the EAR, or that restricts 
access by named persons to items subject to the EAR. Such an order 
denying export privileges may be imposed either as a sanction for a 
violation specified in this part; as a temporary denial order, an 
administrative protective measure that may be taken pursuant to 
Sec. 766.24 of this subchapter; or as an order issued against a person 
convicted for violating one or more of the statutes listed in section 
11(h) of the EAA, an administrative protective measure that may be 
taken pursuant to Sec. 766.25 of this subchapter. A denial order may 
suspend or revoke any or all outstanding licenses issued under the EAR 
to a person named in the denial order, may deny or restrict exports and 
reexports by or to such person of any item subject to the EAR, and may 
restrict dealings in which that person may benefit from any export or 
reexport of such items. The standard denial order, used either as a 
sanction for a violation, as a temporary denial order, or as an order 
issued pursuant to section 11(h) of the EAA and Sec. 766.25 of this 
subchapter, is set forth in Supplement No. 1 to this part, and this 
section is to be construed as authorizing an order of such breadth. A 
non-standard denial order, narrower in scope, may be issued in a 
specific case. Authorization for actions prohibited by a denial order 
may be given by the Office of Exporter Services (OExS), in consultation 
with the Office of Export Enforcement (OEE), on application filed 
either by a person named in the denial order or by a person seeking 
permission to deal with a named person.
    (3) Exclusion from practice. Any person acting as attorney, 
accountant, consultant, freight forwarder, or in any other 
representative capacity with regard to any license application or other 
matter before BXA may be excluded from any or all such activities 
before BXA.
    (b) Criminal. Conduct which constitutes a violation of the EAA, the 
EAR, or any order, license or authorization issued thereunder, or which 
occurs in connection with such a violation, may also be subject to 
criminal sanctions under one or more laws of the United States. Either 
administrative sanctions, criminal sanctions, or both, may be imposed 
for the same conduct.<SUP>1

    \1\The Federal Sentencing Guidelines found in Sec. 2M5.1 of 
Appendix 4 to Title 18 of the United States Code apply, to the 
extent followed by the court, to sentencing for convictions for 
violating the EAA.
---------------------------------------------------------------------------

    (1) General. Except as provided in paragraph (b)(2) of this 
section, whoever knowingly violates or conspires to or attempts to 
violate the EAA, the EAR, or any order or license issued thereunder, 
shall be fined not more than five times the value of the exports 
involved or $50,000, whichever is greater, or by imprisonment for not 
more than five years, or both.<SUP>2

    \2\18 U.S.C. 3571, a broad criminal code provision, establishes 
a maximum criminal fine for a felony that is the greater of the 
amount provided by the statute that was violated, or an amount not 
more than $250,000 for an individual, or an amount not more than 
$500,000 for an organization.
---------------------------------------------------------------------------

    (2) Willful violations. (i) Whoever willfully violates or conspires 
to or attempts to violate any provision of the EAA, the EAR, or any 
order or license issued thereunder, with knowledge that the exports 
involved will be used for the benefit of, or that the destination or 
intended destination of the items involved is, any controlled country 
or any country to which exports are controlled for foreign policy 
purposes, except in the case of an individual, shall be fined per 
violation not more than five times the value of the export involved or 
$1,000,000, whichever is greater; and, in the case of an individual, 
shall be fined per violation not more than $250,000, or imprisoned not 
more than 10 years, or both.
    (ii) Any person who is issued a license under the EAA or the EAR 
for the export of any items to a controlled country and who, with 
knowledge that such export is being used by such controlled country for 
military or intelligence gathering purposes contrary [[Page 25394]] to 
the conditions under which the license was issued, willfully fails to 
report such use to the Secretary of Defense, except in the case of an 
individual, shall be fined per violation not more than five times the 
value of the exports involved or $1,000,000, whichever is greater; and, 
in the case of an individual, shall be fined per violation not more 
than $250,000, or imprisoned not more than five years, or both.
    (iii) Any person who possesses any item with intent to export such 
item in violation of an export control imposed under sections 5 or 6 of 
the EAA, the EAR, or any order or license issued thereunder, or knowing 
or having reason to believe that the item would be so exported, shall, 
in the case of a violation of an export control imposed under section 5 
of the EAA (or the EAR, or any order or license issued thereunder), be 
subject to the penalties set forth in paragraph (b)(2) of this section 
and shall, in the case of a violation of an export control imposed 
under section 6 of the EAA (or the EAR, or any order or license issued 
thereunder), be subject to the penalties set forth in paragraph (b)(1) 
of this section.
    (iv) Any person who takes any action with intent to evade the 
provisions of the EAA, the EAR, or any order or license issued 
thereunder, shall be subject to the penalties set forth in paragraph 
(b)(1) of this section, except that in the case of an evasion of an 
export control imposed under sections 5 or 6 of the EAA (or the EAR, or 
any order or license issued thereunder), such person shall be subject 
to the penalties set forth in paragraph (b)(2) of this section.
    (3) Other criminal sanctions. Conduct which constitutes a violation 
of the EAA, the EAR, or any order, license or authorization issued 
thereunder, or which occurs in connection with such a violation, may 
also be prosecuted under 18 U.S.C. 371 (conspiracy), 18 U.S.C. 1001 
(false statements), 18 U.S.C. 1341, 1343, and 1346 (mail and wire 
fraud), and 18 U.S.C. 1956 and 1957 (money laundering).
    (c) Other sanctions. In addition to the administrative and criminal 
sanctions available under the EAA and the EAR, conduct that violates 
the EAA, the EAR, or any order, license or authorization issued 
thereunder, as well as conduct specifically identified in the EAA, may 
be subject to statutory or other sanctions or protective measures. 
These may include, but are not limited to, the following:
    (1) Statutory sanctions. Statutorily-mandated sanctions may be 
imposed on account of specified conduct related to weapons 
proliferation. Such statutory sanctions do not involve civil or 
criminal penalties, but rather impose restrictions on imports and 
procurement under EAA section 11A (multilateral export control 
violations) and EAA section 11C (chemical and biological weapons 
proliferation), and restrict the issuance of export licenses under EAA 
section 11B (missile proliferation violations) and the Iran-Iraq Arms 
Non-Proliferation Act of 1992. If the conduct for which such statutory 
sanctions are imposed also constitutes a violation of the EAR, it may 
be subject to administrative and criminal sanctions set forth in 
Sec. 764.3(a) and (b) of this part.
    (2) Other actions. (i) Seizure and forfeiture. Items which have 
been, are being, or are intended to be, exported or shipped from or 
taken out of the United States in violation of the EAA, the EAR, or any 
order, license or authorization issued thereunder, are subject to being 
seized and detained, as are the vessels, vehicles, and aircraft 
carrying such items. Seized items are subject to forfeiture. (50 U.S.C. 
app. 2411(g); 22 U.S.C. 401).
    (ii) Temporary denial orders. BXA may obtain a temporary denial 
order on an ex parte basis when it believes such an order is necessary 
to prevent the occurrence of an imminent export violation. (15 CFR 
766.24; EAA section 13(d)).
    (iii) Denial based on criminal conviction. BXA may deny the export 
privileges for a period of up to ten years of any person who has been 
convicted criminally of violations of certain statutes such as the EAA, 
the Arms Export Control Act, and the International Emergency Economic 
Powers Act, Sections 793, 794 or 798 of Title 18 of the United States 
Code and Section 783 of Title 50 of the United States Code. (EAA 
section 11(h); 15 CFR 766.25).
    (iv) Cross-debarment. (A) The Department of State may deny licenses 
or approvals for defense articles and defense services controlled under 
the Arms Export Control Act to persons for a variety of reasons, 
including indictments and/or convictions for specified criminal 
offenses, including violations of the EAA. This section does not 
provide an exhaustive list of other acts whose violation may lead to 
denial of licenses or approvals by the Department of State. (22 CFR 
126.7(a)).
    (B) The Department of State may deny licenses or approvals for 
defense articles and defense services controlled under the Arms Export 
Control Act to persons denied export privileges by other agencies, such 
as BXA. (22 CFR 127.11(a)).
    (C) The Department of Defense, among other agencies, may suspend 
the right of any person to contract with the United States Government 
based on export control violations. (48 CFR 9.407-2(b)).


Sec. 764.4  Reporting of violations.

    (a) Where to report. If a person, or Federal, state, or local 
agency, learns that an export control violation of the EAR has occurred 
or may occur, that person may notify:

Office of Export Enforcement, Bureau of Export Administration, U.S. 
Department of Commerce, Room H-4520, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230, Tel: (202) 482-1208, Facsimile: 
(202) 482-0964.

or, for violations of part 760 of this subchapter:

Office of Antiboycott Compliance, Bureau of Export Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-6099C, Washington, D.C. 20230, Tel: (202) 482-2381, Facsimile: (202) 
482-0913.

    (b) Failure to report violations. Failure to report potential 
violations may result in the unwarranted issuance of export licenses or 
unlicensed exports to the detriment of national security, foreign 
policy, proliferation or short supply interests of the United States.
    (c) Reporting requirement distinguished. The reporting provisions 
set forth in paragraph (a) of this section are not ``reporting 
requirements'' within the meaning of Sec. 764.2(i) of this part.


Sec. 764.5  Voluntary self-disclosure.

    (a) General policy. BXA strongly encourages the disclosure of 
information to OEE by persons who believe that they may have violated 
the export control provisions of the EAA, the EAR, or any order, 
license or authorization issued thereunder. Voluntary self-disclosure 
is a mitigating factor in determining what administrative sanctions, if 
any, will be sought by OEE.
    (b) Limitations.
    (1) The provisions of this section do not apply to disclosures of 
violations of either section 8 of the EAA or of part 760 of the EAR.
    (2) The provisions of this section apply only when information is 
provided to OEE for its review in determining whether to take 
administrative action under part 766 of this subchapter concerning 
violations of the export control provisions of the EAA and the EAR. 
[[Page 25395]] 
    (3) The provisions of this section apply only when information is 
received by OEE for review prior to the time that OEE, or any other 
agency of the United States Government, has learned the same or 
substantially similar information from another source and has commenced 
an investigation or inquiry in connection with that information.
    (4) While voluntary self-disclosure is a mitigating factor in 
determining what administrative sanctions, if any, will be sought by 
OEE, it is a factor that is considered together with all other factors 
in a case. The weight given to voluntary self-disclosure is solely 
within the discretion of OEE, and the mitigating effect of voluntary 
self-disclosure may be outweighed by aggravating factors. Moreover, 
voluntary self-disclosure does not prevent transactions from being 
referred to the Justice Department for criminal prosecution. In such a 
case, OEE would notify the Justice Department of the voluntary self-
disclosure, but the Justice Department is not required to give that 
fact any weight.
    (5) A firm will not be deemed to have made a disclosure under this 
section unless the individual making the disclosure did so with the 
full knowledge and authorization of the firm's senior management.
    (6) The provisions of this section do not, nor should they be 
relied on to, create, confer, or grant any rights, benefits, 
privileges, or protection enforceable at law or in equity by any 
person, business, or entity in any civil, criminal, administrative, or 
other matter.
    (c) Information to be provided to the Office of Export Enforcement 
in connection with a voluntary self-disclosure.
    (1) General. Any person wanting to disclose information that 
constitutes a voluntary self-disclosure should, in the manner outlined 
in this paragraph (c), initially notify OEE as soon as possible after 
violations are discovered, and then conduct a thorough review of all 
export-related transactions where violations are suspected.
    (2) Initial notification. (i) The initial notification should be in 
writing and be sent to one of the addresses set forth in 
Sec. 764.5(c)(7) of this part. The notification should include the name 
of the person making the disclosure and a brief description of the 
suspected violations.
    (ii) OEE recognizes that there may be situations where it will not 
be practical to make an initial notification in writing. For example, 
written notification may not be practical if a shipment leaves the 
United States without the required export license, yet there is still 
an opportunity to prevent acquisition of the items by unauthorized 
persons. In such situations, OEE should be contacted promptly at one of 
the locations listed in Sec. 764.5(c)(7) of this part.
    (iii) The initial notification should describe the general nature 
and extent of the violations. If the person making the disclosure 
subsequently completes the narrative account required by 
Sec. 764.5(c)(3) of this part, the disclosure will be deemed to have 
been made on the date of the initial notification for purposes of 
Sec. 764.5(b)(3) of this part.
    (3) Narrative account. After the initial notification, a thorough 
review should be conducted of all export-related transactions where 
possible violations are suspected. OEE recommends that the review cover 
a period of five years prior to the date of the initial notification. 
If the person making the disclosure undertakes a review of more limited 
scope than that recommended, he risks failing to discover violations 
that may later become the subject of an investigation. Any violations 
not voluntarily disclosed do not receive consideration under this 
section. However, the failure to make such disclosures will not be 
treated as a separate violation unless some other section of the EAR or 
other provision of law requires disclosure. Upon completion of the 
review, OEE should be furnished with a narrative account that 
sufficiently describes the suspected violations so that their nature 
and gravity can be assessed. The narrative account should also describe 
the nature of the review conducted and measures that may have been 
taken to minimize the likelihood that violations will occur in the 
future. The narrative account should include:
    (i) The kind of violation involved, for example an unlicensed 
shipment, or dealing with a party denied U.S. export privileges;
    (ii) An explanation of when and how the violations occurred;
    (iii) The complete identities and addresses of all individuals and 
organizations, whether foreign or domestic, involved in the activities 
giving rise to the violations;
    (iv) Export license numbers;
    (v) Commodity classification numbers, product descriptions and 
quantities, and value in U.S. dollars of the commodities or technical 
data involved; and
    (vi) A description of any mitigating circumstances.
    (4) Supporting documentation. (i) The narrative account should be 
accompanied by copies of those documents that explain and support it, 
including:
    (A) Licensing documents such as licenses, license applications, 
import certificates and end-user statements;
    (B) Shipping documents such as Shipper's Export Declarations, air 
waybills and bills of lading; and
    (C) Other documents such as letters, facsimiles, telexes and other 
evidence of written or oral communications, internal memoranda, 
purchase orders, invoices, letters of credit and brochures.
    (ii) Any relevant documents not attached to the narrative account 
must be retained by the person making the disclosure until OEE requests 
them, or until a final decision on the disclosed information has been 
made. After a final decision, the documents should be handled in 
accordance with the recordkeeping rules set forth in part 762 of this 
subchapter.
    (5) Certification. A certification must be submitted stating that 
all of the representations made in connection with the voluntary self-
disclosure are true and correct to the best of that person's knowledge 
and belief. Certifications made by a corporation or other organization 
should be signed by an official of the corporation or other 
organization with the authority to do so. Section 764.2(g) of this 
part, relating to false or misleading representations, applies in 
connection with the disclosure of information under this section.
    (6) Oral presentations. OEE believes that oral presentations are 
generally not necessary to augment the written narrative account and 
supporting documentation. If the person making the disclosure believes 
otherwise, a request for a meeting should be included with the 
disclosure.
    (7) Where to make voluntary self-disclosures. The information 
constituting a voluntary self-disclosure or any other correspondence 
pertaining to a voluntary self-disclosure may be submitted to:

Office of Export Enforcement, Director, Intelligence Division, U.S. 
Department of Commerce, Ben Franklin Station, P.O. Box 70, Washington, 
D.C. 20044
Office of Export Enforcement, Director, Intelligence Division, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-4520, Washington, D.C. 20230, Tel: (202) 482-1208, Facsimile: (202) 
482-0964

or to any of the following field offices:

Special Agent in Charge, Boston Field Office, Office of Export 
Enforcement, [[Page 25396]] New Boston Federal Building, 10 Causeway 
Street, Room 350, Boston, Massachusetts 02222, Tel: (617) 565-6030
Special Agent in Charge, Chicago Field Office, Office of Export 
Enforcement, 2400 East Devon, Suite 300, Des Plaines, Illinois 60018, 
Tel: (312) 353-6640
Special Agent in Charge, Dallas Field Office, Office of Export 
Enforcement, 525 Griffin Street, Room 622, Dallas, Texas 75202, Tel: 
(214) 767-9294
Special Agent in Charge, Los Angeles Field Office, Office of Export 
Enforcement, 2601 Main Street, Suite 310, Irvine, California 92714-
6299, Tel: (714) 251-9001
Special Agent in Charge, Miami Field Office, Office of Export 
Enforcement, 200 East Las Olas Blvd., Suite 1260, Fort Lauderdale, 
Florida 33301, Tel: (305) 356-7540
Special Agent in Charge, New York Field Office, Office of Export 
Enforcement, Teleport II, 2 Teleport Drive, Staten Island, New York 
10311-1001, Tel: (718) 370-0070
Special Agent in Charge, San Jose Field Office, Office of Export 
Enforcement, 96 North 3rd Street, Suite 250, San Jose, California 
95112-5572, Tel: (408) 291-4204
Special Agent in Charge, Washington, D.C. Field Office, Office of 
Export Enforcement, 8001 Forbes Place, Room 201, Springfield, Virginia 
22151-0838, Tel: (703) 487-4950

    (d) Action by the Office of Export Enforcement. After OEE has been 
provided with the required narrative and supporting documentation, it 
will acknowledge the disclosure by letter, provide the person making 
the disclosure with a point of contact, and take whatever additional 
action, including further investigation, it deems appropriate. As 
quickly as the facts and circumstances of a given case permit, OEE may 
take any of the following actions:
    (1) Inform the person or firm making the disclosure that, based on 
the facts disclosed, it plans to take no action;
    (2) Issue a warning letter;
    (3) Issue a proposed charging letter pursuant to Sec. 766.18 of 
this subchapter and attempt to settle the matter;
    (4) Issue a charging letter pursuant to Sec. 766.3 of this 
subchapter if a settlement is not reached; and/or
    (5) Refer the matter to the United States Department of Justice for 
criminal prosecution.
    (e) Criteria. For purposes of determining what administrative 
action to take and what sanctions, if any, to seek, the fact that a 
voluntary self-disclosure has been made will be a mitigating factor. 
OEE will take that factor into account along with other mitigating and 
aggravating factors when determining what, if any, administrative 
sanction should be imposed. The factors that OEE will consider are in 
its sole discretion, but may include:
    (1) The extent to which the purpose of the control is undermined by 
the transaction;
    (2) Whether the transaction would have been authorized had proper 
application been made;
    (3) The quantity and value of the items involved;
    (4) Why the violations occurred. For example, OEE may consider 
whether the violations were intentional or inadvertent; the degree to 
which the person or firm responsible for the violation making the 
disclosure was familiar with the EAR; and whether the violator has been 
the subject of prior administrative or criminal action under the EAA;
    (5) Whether, as a result of the information provided, OEE is able 
to prevent any items exported illegally from reaching unauthorized 
persons or destinations;
    (6) The degree of cooperation with the ensuing investigation;
    (7) Whether the person or firm has instituted or improved an 
internal compliance program to reduce the likelihood of future 
violations.
    (f) Treatment of unlawfully exported items after voluntary self-
disclosure. (1) Any person taking certain actions with knowledge or 
reason to know that a violation of the EAA or the EAR has occurred has 
violated Sec. 764.2(e) of this part of the EAR. Any person who has made 
a voluntary self-disclosure has reason to believe that a violation may 
have occurred. Therefore, at the time that a voluntary self-disclosure 
is made, the person making the disclosure may request permission from 
BXA to engage in the activities set forth in Sec. 764.2(e) of this part 
which would otherwise be prohibited. If the request is granted by 
Export Administration (EA), in consultation with Export Enforcement 
(EE), future activities with respect to those items that would 
otherwise violate Sec. 764.2(e) of this part, will not constitute 
violations. However, even if permission is granted, the person making 
the voluntary self-disclosure is not absolved from liability for any 
violations disclosed, nor is he relieved from the obligation to obtain 
any required reexport authorizations.
    (2) Reexport authorization for items that are the subject of a 
voluntary self-disclosure, and that have been exported contrary to the 
provisions of the EAA or the EAR, may be requested from BXA in 
accordance with the provisions of part 748 of this subchapter. If the 
applicant for reexport authorization knows or has reason to know that 
the items are the subject of a voluntary self-disclosure, the request 
should state that a voluntary self-disclosure was made in connection 
with the export of the commodities for which reexport authorization is 
sought.

Supplement No. 1 To Part 764--Standard Terms Of Orders Denying Export 
Privileges

    Orders denying export privileges may be ``standard'' or ``non-
standard.'' This Supplement sets forth the terms of the standard order 
denying export privileges. All orders denying export privileges are 
published in the Federal Register. The failure by any person to comply 
with any order denying export privileges is a violation of the Export 
Administration Regulation (EAR). (See General Prohibition Four at 
Sec. 734.2(b)(4) of this subchapter; Sec. 764.2(k) of this part). All 
persons whose export privileges are denied by any form of denial order 
are identified on the Denied Persons List (Supplement No. 2 to this 
part), with an indication of whether an order is standard or non-
standard denoted in the ``Term of order'' column. The Denied Persons 
List also tells you where each denial order can be found in the Federal 
Register. Reference should be made to the text of the denial order, as 
published in the Federal Register, to learn the scope of any order that 
denies export privileges, including any non-standard denial order.
    Denial orders issued prior to [THE EFFECTIVE DATE OF THE FINAL 
RULE] are to be construed, insofar as possible, as having the same 
scope and effect as this standard denial order.
    The introduction to each order imposing a denial of export 
privileges shall be specific to that order, and shall include: (1) The 
name and address of any denied persons and any related persons subject 
to the denial order; (2) the basis for the denial order, such as final 
decision following charges of violation, settlement agreement, section 
11(h) of the EAA, or temporary denial order request; and (3) the period 
of denial, the effective date of the order, whether and for how long 
any portion of the denial of export privileges is suspended, and any 
conditions of probation.
    The standard denial order shall provide:
    ``IT IS THEREFORE ORDERED:
    FIRST, that [the denied person(s)] may not, directly or indirectly, 
participate in any way in any transaction involving any commodity, 
[[Page 25397]] technology or software (hereinafter collectively 
referred to as ``item'') exported or to be exported from the United 
States that is subject to the Export Administration Regulations (EAR), 
or in any other activity subject to the EAR, including, but not limited 
to:
    A. Applying for, obtaining, or using any license, license 
exception, or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the EAR, or in any other activity 
subject to the EAR; or
    C. Benefiting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the EAR, or in any other activity subject to the EAR.
    SECOND, that no person may, directly or indirectly, do any of the 
following:<SUP>1

    \1\But see Sec. 764.3(a)(2) which permits BXA, by request, to 
authorize certain actions prohibited by a denial order.
---------------------------------------------------------------------------

    A. Export or reexport to or on behalf of the denied person any item 
subject to the EAR;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a denied person of the ownership, possession, or control 
of any item subject to the EAR that has been or will be exported from 
the United States, including financing or other support activities 
related to a transaction whereby a denied person acquires or attempts 
to acquire such ownership, possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from the denied person of any item subject to 
the EAR that has been exported from the United States;
    D. Obtain from the denied person in the United States any item 
subject to the EAR with knowledge or reason to know that the item will 
be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the EAR 
that has been or will be exported from the United States and which is 
owned, possessed or controlled by a denied person, or service any item, 
of whatever origin, that is owned, possessed or controlled by a denied 
person if such service involves the use of any item subject to the EAR 
that has been or will be exported from the United States. For purposes 
of this paragraph, servicing means installation, maintenance, repair, 
modification or testing.
    THIRD, that after notice and opportunity for comment as provided in 
Sec. 766.23 of the EAR, any person, firm, corporation, or business 
organization hereafter related to the denied person by affiliation, 
ownership, control, or position of responsibility in the conduct of 
trade or related services may also be made subject to the provisions of 
this order.
    FOURTH, that this order does not prohibit an export, reexport,or 
other transaction subject to the EAR where the only items involved that 
are subject to the EAR are the foreign-produced direct product of U.S.-
origin technology.
    This order, which constitutes the final agency action in this 
matter, is effective immediately.''

Supplement No. 2 To Part 764--Denied Persons List

    (a) General. (1) The Denied Persons List identifies those persons 
denied export privileges by the Bureau of Export Administration (BXA) 
pursuant to the terms of an order. Part A of the Denied Persons List 
lists all denied persons in alphabetical order and provides 
supplementary information, while Part B lists all denied persons by 
geographic area. Part A of the Denied Persons List is organized into 
five columns, including the name and address of the denied person, the 
effective and expiration dates of the order, a brief description of the 
terms of the order, and a citation to the Federal Register here the 
terms of the order can be located. Reference should always be made to 
the text of a denial order when using the Denied Persons List.
    (2) Denial orders issued subsequent to [THE EFFECTIVE DATE OF THE 
FINAL RULE] shall be identified in Part A as being standard or non-
standard, and denial orders issued prior to [THE EFFECTIVE DATE OF THE 
FINAL RULE] shall be construed, insofar as possible, as having the same 
scope and effect as the standard denial order. Non-standard orders are 
denoted by the phrase ``non-standard'' in the ``Terms of order'' column 
in Part A, standard orders are denoted by the word ``standard,'' and 
orders issued prior to [THE EFFECTIVE DATE OF THE FINAL RULE] are 
denoted by the same brief description entered at the time of issuance. 
Standard orders denying export privileges contain the standard terms 
set forth in Supplement No. 1 to part 764.
    (3) You are responsible for ensuring that you take no action 
involving items subject to the Export Administration Regulations (EAR) 
that is contrary to the terms of a denial order.
    (b) Related persons. Related persons who are denied export 
privileges subsequent to [THE EFFECTIVE DATE OF THE FINAL RULE] shall 
appear in Part A of the Denied Persons List with a note identifying the 
denied persons to whom they are related in the column entitled ``Terms 
of order.''
    (c) Publication. New and amended denial orders are published in the 
Federal Register as they are issued. This publication constitutes the 
only official notice to the public, and the Federal Register is the 
only source that can be relied on to provide current and accurate 
information with respect to denied persons.
    (d) Updates and availability. As a convenience for the public, 
issuance of denial orders is announced in Export Administration 
Bulletins, as well as in printed Denied Persons List updates. The 
printed version of the Denied Persons List is revised and updated by 
BXA semi-annually, adding new or amended orders and deleting orders 
which have expired. Between the semi-annual revisions of the Denied 
Persons List, additions and changes are published in Export 
Administration Bulletins. The Denied Persons List does not appear in 
the CFR, but you may contact the Office of Exporter Services to request 
a copy:

Office of Exporter Services, P.O. Box 273, Washington, DC 20044

      or

U.S. Department of Commerce, Bureau of Export Administration, Room 
2705, 14th Street & Constitution Avenue, NW., Washington, DC 20230, 
Tel: (202) 482-0074

    The Denied Persons List is also available electronically on the 
National Trade Data Base, which is updated only as frequently as the 
printed version of the Denied Persons List.

PART 766--ADMINISTRATIVE ENFORCEMENT PROCEEDINGS

Sec.
766.1  Scope.
766.2  Definitions.
766.3  Institution of administrative enforcement proceedings.
766.4  Representation.
766.5  Filing and service of papers other than charging letter.
766.6  Answer and demand for hearing.
766.7  Default.
766.8  Summary decision.
766.9  Discovery.
766.10  Subpoenas.
766.11  Matter protected against disclosure.
766.12  Prehearing conference.
766.13  Hearings.
766.14  Interlocutory review of rulings.
766.15  Proceeding without a hearing.
766.16  Procedural stipulations; extension of time. [[Page 25398]] 
766.17  Decision of the administrative law judge.
766.18  Settlement.
766.19  Reopening.
766.20  Record for decision and availability of documents.
766.21  Appeals.
766.22  Review by Under Secretary.
766.23  Related persons.
766.24  Temporary denials.
766.25  Administrative action denying permission to apply for or use 
export licenses.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 766.1  Scope.

    This part describes the procedures for imposing administrative 
sanctions for violations of the Export Administration Act of 1979, as 
amended (the EAA), the Export Administration Regulations (EAR), or any 
order, license or authorization issued thereunder. Parts 760 and 764 of 
this subchapter define those actions that constitute violations, and 
part 764 describes the sanctions that apply. In addition, this part 
describes the procedures for imposing temporary denial orders to 
prevent imminent violations of the EAA, the EAR, or any order, license 
or authorization issued thereunder. Finally, this part describes the 
procedures for taking the discretionary protective administrative 
action of denying the export privileges of persons who have been 
convicted of violating any of the statutes, including the EAA, listed 
in section 11(h) of the EAA. Nothing in this part shall be construed as 
applying to or limiting other administrative or enforcement action 
relating to the EAA or the regulations in this subchapter, including 
the exercise of any investigative authorities conferred by the EAA. 
This part does not confer any procedural rights or impose any 
requirements based on the Administrative Procedure Act to proceedings 
charging violations under the EAA, except as expressly provided for in 
this part.


Sec. 766.2  Definitions.

    As used in this part, the following definitions apply:
    Administrative Law Judge. The person authorized to conduct hearings 
in administrative enforcement proceedings brought under the EAA or to 
decide appeals from the imposition of temporary denial orders.
    Assistant Secretary. The Assistant Secretary for Export 
Enforcement, Bureau of Export Administration.
    Bureau of Export Administration (BXA). Bureau of Export 
Administration, United States Department of Commerce, and all of its 
component units, including, in particular for purposes of this part, 
the Office of Antiboycott Compliance, the Office of Export Enforcement, 
and the Office of Exporter Services.
    EAR. The Export Administration Regulations (15 CFR parts 730 
through 774), including the regulations concerning Restrictive Trade 
Practices or Boycotts (15 CFR part 760).
    Final decision. A decision or order assessing a civil penalty, 
denial of export privileges or other sanction, or otherwise disposing 
of or dismissing a case, which is not subject to further review under 
this part, and which is subject to collection proceedings or judicial 
review in an appropriate Federal district court as authorized by law.
    Initial decision. A decision of the administrative law judge in 
proceedings involving violations relating to section 8 of the EAA, and 
which is subject to appellate review by the Under Secretary for Export 
Administration, but which becomes the final decision in the absence of 
such an appeal.
    Party. BXA and any person named as a respondent under this part. 
Recommended decision. A decision of the administrative law judge in 
proceedings involving violations other than those relating to section 8 
of the EAA, and which is subject to review by the Under Secretary of 
Commerce for Export Administration, who issues a written order 
affirming, modifying or vacating the recommended decision.
    Respondent. Any person named in a charging letter, proposed 
charging letter, temporary denial order, or other order proposed or 
issued under this part.
    Under Secretary. The Under Secretary for Export Administration, 
United States Department of Commerce.


Sec. 766.3  Institution of administrative enforcement proceedings.

    (a) Charging letters. The Director of the Office of Export 
Enforcement<SUP>1 (OEE) or the Director of the Office of Antiboycott 
Compliance (OAC), as appropriate, may begin administrative enforcement 
proceedings under this part by issuing a charging letter in the name of 
BXA. The charging letter shall constitute the formal complaint and will 
state that there is reason to believe that a violation of the EAA, the 
EAR, or any order, license or authorization issued thereunder, has 
occurred. It will set forth the essential facts about the alleged 
violation, refer to the specific regulatory or other provisions 
involved, and give notice of the sanctions available under part 764 of 
this subchapter. The charging letter will inform the respondent that 
failure to answer as provided in Sec. 766.6 of this part will be 
treated as a default under Sec. 766.7 of this part; that the respondent 
is entitled to a hearing if a written demand for one is requested with 
the answer, and that the respondent may be represented by counsel, or 
by other authorized representative who has a power of attorney to 
represent the respondent. A copy of the charging letter shall be filed 
with the administrative law judge, which filing shall toll the running 
of the applicable statute of limitations. Charging letters may be 
amended or supplemented at any time before an answer is filed, or, with 
permission of the administrative law judge, afterwards. BXA may 
unilaterally withdraw charging letters at any time, by notifying the 
respondent and the administrative law judge.

    \1\By agreement with the Director of the Office of Strategic 
Industries and Economic Resource Administration, the Director of the 
Office of Export Enforcement enforces short supply controls imposed 
under section 7 of the EAA.
---------------------------------------------------------------------------

    (b) Notice of issuance of charging letter instituting 
administrative enforcement proceeding. A respondent shall be notified 
of the issuance of a charging letter, or any amendment or supplement 
thereto:
    (1) By mailing a copy by registered or certified mail addressed to 
the respondent at his last known address;
    (2) By leaving a copy with the respondent or with an officer, a 
managing or general agent, or any other agent authorized by appointment 
or by law to receive service of process for the respondent; or
    (3) By leaving a copy with a person of suitable age and discretion 
who resides at the respondent's last known dwelling.
    (4) Delivery of a copy of the charging letter, if made in the 
manner described in paragraph (b)(2) or (3) of this section, shall be 
evidenced by a certificate of service signed by the person making such 
service, stating the method of service and the identity of the person 
with whom the charging letter was left. The certificate of service 
shall be filed with the administrative law judge.
    (c) Date. The date of service of notice of the issuance of a 
charging letter instituting an administrative enforcement proceeding, 
or service of notice of the issuance of a supplement or amendment to a 
charging letter, is the date of its delivery, or of its attempted 
delivery if delivery is refused. [[Page 25399]] 


Sec. 766.4  Representation.

    A respondent individual may appear and participate in person, a 
corporation by a duly authorized officer or employee, and a partnership 
by a partner. If a respondent is represented by counsel, counsel shall 
be a member in good standing of the bar of any State, Commonwealth or 
Territory of the United States, or of the District of Columbia, or be 
licensed to practice law in the country in which counsel resides. A 
respondent personally, or through counsel or other representative, 
shall file a notice of appearance with the administrative law judge. 
BXA will be represented by the Office of Chief Counsel for Export 
Administration, U.S. Department of Commerce.


Sec. 766.5  Filing and service of papers other than charging letter.

    (a) Filing. All papers to be filed shall be delivered or mailed to 
``EAR Administrative Enforcement Proceedings,'' U.S. Department of 
Commerce, Room H-6716, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230, or such other place as the administrative law 
judge may designate. Filing by United States mail, first class postage 
prepaid, or by express or equivalent parcel delivery service, is 
acceptable. Filing by mail from a foreign country shall be by airmail. 
In addition, the administrative law judge may authorize filing of 
papers by facsimile or other electronic means, provided that a hard 
copy of any such paper is subsequently filed. A copy of each paper 
filed shall be simultaneously served on each party.
    (b) Service. Service shall be made by personal delivery or by 
mailing one copy of each paper to each party in the proceeding. Service 
by delivery service or facsimile, in the manner set forth in paragraph 
(a) of this section, is acceptable. Service on BXA shall be addressed 
to the Chief Counsel for Export Administration, Room H-3839, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230. Service on a respondent shall be to the address 
to which the charging letter was sent or to such other address as 
respondent may provide. When a party has appeared by counsel or other 
representative, service on counsel or other representative shall 
constitute service on that party.
    (c) Date. The date of filing or service is the day when the papers 
are deposited in the mail or are delivered in person, by delivery 
service, or by facsimile.
    (d) Certificate of service. A certificate of service signed by the 
party making service, stating the date and manner of service, shall 
accompany every paper, other than the charging letter, filed and served 
on parties.
    (e) Computing period of time. In computing any period of time 
prescribed or allowed by this part or by order of the administrative 
law judge or the Under Secretary, the day of the act, event, or default 
from which the designated period of time begins to run is not to be 
included. The last day of the period so computed is to be included 
unless it is a Saturday, a Sunday, or a legal holiday (as defined in 
Rule 6(a) of the Federal Rules of Civil Procedure), in which case the 
period runs until the end of the next day which is neither a Saturday, 
a Sunday, nor a legal holiday. Intermediate Saturdays, Sundays, and 
legal holidays are excluded from the computation when the period of 
time prescribed or allowed is seven days or less.


Sec. 766.6  Answer and demand for hearing.

    (a) When to answer. The respondent must answer the charging letter 
within 30 days after being served with notice of the issuance of a 
charging letter instituting an administrative enforcement proceeding, 
or within 30 days of notice of any supplement or amendment to a 
charging letter, unless time is extended under Sec. 766.16 of this 
part.
    (b) Contents of answer. The answer must be responsive to the 
charging letter and must fully set forth the nature of the respondent's 
defense or defenses. The answer must admit or deny specifically each 
separate allegation of the charging letter; if the respondent is 
without knowledge, the answer must so state and will operate as a 
denial. Failure to deny or controvert a particular allegation will be 
deemed an admission of that allegation. The answer must also set forth 
any additional or new matter the respondent believes supports a defense 
or claim of mitigation. Any defense or partial defense not specifically 
set forth in the answer shall be deemed waived, and evidence thereon 
may be refused, except for good cause shown.
    (c) Demand for hearing. If the respondent desires a hearing, a 
written demand for one must be submitted with the answer. Any demand by 
BXA for a hearing must be filed with the administrative law judge 
within 30 days after service of the answer. Failure to make a timely 
written demand for a hearing shall be deemed a waiver of the party's 
right to a hearing, except for good cause shown. If no party demands a 
hearing, the matter will go forward in accordance with the procedures 
set forth in Sec. 766.15 of this part.
    (d) English language required. The answer, all other papers, and 
all documentary evidence must be submitted in English, or translations 
into English must be filed and served at the same time.


Sec. 766.7  Default.

    (a) General. Failure of the respondent to file an answer within the 
time provided shall be deemed to constitute a waiver of the 
respondent's right to appear and contest the allegations in the 
charging letter and to authorize the administrative law judge, on BXA's 
motion and without further notice to the respondent, to find the facts 
to be as alleged in the charging letter and to enter a recommended 
decision containing findings of fact and appropriate conclusions of law 
and a proposed order imposing appropriate sanctions. The recommended 
decision and proposed order shall be reviewed by the Under Secretary in 
accordance with the procedures set forth in Sec. 766.22 of this part.
    (b) Petition to set aside default. (1) Procedure. Upon petition 
filed by a respondent against whom a default order has been issued, 
which petition is accompanied by an answer meeting the requirements of 
Sec. 766.6(b) of this part, the Under Secretary may, after giving all 
parties an opportunity to comment, and for good cause shown, set aside 
the default and vacate the order entered thereon and remand the matter 
to the administrative law judge for further proceedings.
    (2) Time limits. A petition under this section must be made within 
one year of the date of entry of the order which the petition seeks to 
have vacated.


Sec. 766.8  Summary decision.

    At any time after a proceeding has been initiated, a party may move 
for a summary decision disposing of some or all of the issues. The 
administrative law judge may render an initial or recommended decision 
and order if the entire record shows, as to the issue(s) under 
consideration:
    (a) That there is no genuine issue as to any material fact; and
    (b) That the moving party is entitled to a summary decision as a 
matter of law.


Sec. 766.9  Discovery.

    (a) General. The parties are encouraged to engage in voluntary 
discovery regarding any matter, not privileged, which is relevant to 
the subject matter of the pending proceeding. The provisions of the 
Federal Rules of Civil Procedure relating to discovery apply to the 
extent [[Page 25400]] consistent with this part and except as otherwise 
provided by the administrative law judge or by waiver or agreement of 
the parties. The administrative law judge may make any order which 
justice requires to protect a party or person from annoyance, 
embarrassment, oppression, or undue burden or expense. These orders may 
include limitations on the scope, method, time and place of discovery, 
and provisions for protecting the confidentiality of classified or 
otherwise sensitive information.
    (b) Interrogatories and requests for admission or production of 
documents. A party may serve on any party interrogatories, requests for 
admission, or requests for production of documents for inspection and 
copying, and a party concerned may apply to the administrative law 
judge for such enforcement or protective order as that party deems 
warranted with respect to such discovery. The service of a discovery 
request shall be made at least 20 days before the scheduled date of 
hearing unless the administrative law judge specifies a shorter time 
period. Copies of interrogatories, requests for admission and requests 
for production of documents and responses thereto shall be served on 
all parties, and a copy of the certificate of service shall be filed 
with the administrative law judge. Matters of fact or law of which 
admission is requested shall be deemed admitted unless, within a period 
designated in the request (at least 10 days after service, or within 
such further time as the administrative law judge may allow), the party 
to whom the request is directed serves upon the requesting party a 
sworn statement either denying specifically the matters of which 
admission is requested or setting forth in detail the reasons why he 
cannot truthfully either admit or deny such matters.
    (c) Depositions. Upon application of a party and for good cause 
shown, the administrative law judge may order the taking of the 
testimony of any person by deposition and the production of specified 
documents or materials by the person at the deposition. The application 
shall state the purpose of the deposition and set forth the facts 
sought to be established through the deposition.
    (d) Enforcement. The administrative law judge may order a party to 
answer designated questions, to produce specified documents or things 
or to take any other action in response to a proper discovery request. 
If a party does not comply with such an order, the administrative law 
judge may make a determination or enter any order in the proceeding as 
he deems reasonable and appropriate. The judge may strike related 
charges or defenses in whole or in part or may take particular facts 
relating to the discovery request to which the party failed or refused 
to respond as being established for purposes of the proceeding in 
accordance with the contentions of the party seeking discovery. In 
addition, enforcement by a district court of the United States may be 
sought under section 12(a) of the EAA.


Sec. 766.10  Subpoenas.

    (a) Issuance. Upon the application of any party, supported by a 
satisfactory showing that there is substantial reason to believe that 
the evidence would not otherwise be available, the administrative law 
judge will issue subpoenas requiring the attendance and testimony of 
witnesses and the production of such books, records or other 
documentary or physical evidence for the purpose of the hearing, as the 
judge deems relevant and material to the proceedings, and reasonable in 
scope.
    (b) Service. Subpoenas issued by the administrative law judge may 
be served in any of the methods set forth in Sec. 766.5(b) of this 
part.
    (c) Timing. Applications for subpoenas must be submitted at least 
10 days before the scheduled hearing or deposition, unless the 
administrative law judge determines, for good cause shown, that 
extraordinary circumstances warrant a shorter time.


Sec. 766.11  Matter protected against disclosure.

    (a) Protective measures. It is often necessary for BXA to receive 
and consider information and documents that are sensitive from the 
standpoint of national security or business confidentiality and that 
are to be protected against disclosure. Accordingly, and without 
limiting the discretion of the administrative law judge to give effect 
to any other applicable privilege, it is proper for the administrative 
law judge to limit discovery or introduction of evidence or to issue 
such protective or other orders as in his judgment may be consistent 
with the objective of preventing undue disclosure of the sensitive 
documents or information. Where the administrative law judge determines 
that documents containing the sensitive matter need to be made 
available to a respondent to avoid prejudice, the judge may direct BXA 
to prepare an unclassified and nonsensitive summary or extract of the 
documents. The administrative law judge may compare the extract or 
summary with the original to ensure that it is supported by the source 
document and that it omits only so much as must remain classified or 
undisclosed. The summary or extract may be admitted as evidence in the 
record.
    (b) Arrangements for access. If the administrative law judge 
determines that this procedure is unsatisfactory and that classified or 
otherwise sensitive matter must form part of the record in order to 
avoid prejudice to a party, the judge may provide the parties 
opportunity to make arrangements that permit a party or a 
representative to have access to such matter without compromising 
national security or confidential business information. Such 
arrangements may include obtaining security clearances, obtaining a 
national interest determination under section 12(c) of the EAA, or 
giving counsel for a party access to sensitive information and 
documents subject to assurances against further disclosure, including a 
protective order, if necessary.


Sec. 766.12  Prehearing conference.

    (a) The administrative law judge, on his own motion or on request 
of a party, may direct the parties to participate in a prehearing 
conference, either in person or by telephone, to consider:
    (1) Simplification of issues;
    (2) The necessity or desirability of amendments to pleadings;
    (3) Obtaining stipulations of fact and of documents to avoid 
unnecessary proof; or
    (4) Such other matters as may expedite the disposition of the 
proceedings.
    (b) The administrative law judge may order the conference 
proceedings to be recorded electronically or taken by a reporter, 
transcribed and filed with the judge.
    (c) If a prehearing conference is impracticable, the administrative 
law judge may direct the parties to correspond with him to achieve the 
purposes of such a conference.
    (d) For all conference proceedings, the administrative law judge 
will prepare a summary of any actions agreed on or taken at the 
conference. The summary will include any written stipulations or 
agreements made by the parties.


Sec. 766.13  Hearings.

    (a) Scheduling. The administrative law judge, by agreement with the 
parties or upon notice to all parties of not less than 30 days, will 
schedule a hearing. All hearings will be held in Washington, D.C., 
unless the administrative law judge determines, for good cause shown, 
that another location would better serve the interests of 
justice. [[Page 25401]] 
    (b) Hearing procedure. Hearings will be conducted in a fair and 
impartial manner by the administrative law judge, who may limit 
attendance at any hearing or portion thereof to the parties, their 
representatives and witnesses if he deems this necessary or advisable 
in order to protect sensitive matter (see Sec. 766.11 of this part) 
from improper disclosure. The rules of evidence prevailing in courts of 
law do not apply, and all evidentiary material deemed by the 
administrative law judge to be relevant and material to the proceeding 
and not unduly repetitious will be received and given appropriate 
weight.
    (c) Testimony and record. Witnesses will testify under oath or 
affirmation. A verbatim record of the hearing and of any other oral 
proceedings will be taken by reporter or by electronic recording, 
transcribed and filed with the administrative law judge. A respondent 
may examine the transcript and may obtain a copy by paying any 
applicable costs. Upon such terms as the administrative law judge deems 
just, the judge may direct that the testimony of any person be taken by 
deposition and may admit an affidavit or declaration as evidence, 
provided that any affidavits or declarations have been filed and served 
on the parties sufficiently in advance of the hearing to permit a party 
to file and serve an objection thereto on the grounds that it is 
necessary that the affiant or declarant testify at the hearing and be 
subject to cross-examination.
    (d) Failure to appear. If a party fails to appear in person or by 
counsel at a scheduled hearing, the hearing may nevertheless proceed, 
and that party's failure to appear will not affect the validity of the 
hearing or any proceedings or action taken thereafter.


Sec. 766.14  Interlocutory review of rulings.

    (a) At the request of a party, or on the judge's own initiative, 
the administrative law judge may certify to the Under Secretary for 
review a ruling that does not finally dispose of a proceeding, if the 
administrative law judge determines that immediate review may 
materially advance the final disposition of the matter.
    (b) Upon certification to the Under Secretary of the interlocutory 
ruling for review, the parties will have 10 days to file and serve 
briefs stating their positions, and five days to file and serve 
replies, following which the Under Secretary will decide the matter 
promptly.


Sec. 766.15  Proceeding without a hearing.

    If the parties have waived a hearing, the case will be decided on 
the record by the administrative law judge. Proceeding without a 
hearing does not relieve the parties from the necessity of proving the 
facts supporting their charges or defenses. Affidavits or declarations, 
depositions, admissions, answers to interrogatories and stipulations 
may supplement other documentary evidence in the record. The 
administrative law judge will give each party reasonable opportunity to 
file rebuttal evidence.


Sec. 766.16  Procedural stipulations; extension of time.

    (a) Procedural stipulations. Unless otherwise ordered, a written 
stipulation agreed to by all parties and filed with the administrative 
law judge will modify any procedures established by this part.
    (b) Extension of time. (1) The parties may extend any applicable 
time limitation, by stipulation filed with the administrative law judge 
before the time limitation expires.
    (2) The administrative law judge may, on his/her own initiative or 
upon application by any party, either before or after the expiration of 
any applicable time limitation, extend the time within which to file 
and serve an answer to a charging letter or do any other act required 
by this part.


Sec. 766.17  Decision of the administrative law judge.

    (a) Predecisional matters. Except insofar as the default procedures 
of Sec. 766.7 of this part may be applicable, the administrative law 
judge will give the parties reasonable opportunity to submit the 
following, which will be made a part of the record:
    (1) Exceptions to any ruling by him/her or to the admissibility of 
evidence proffered at the hearing;
    (2) Proposed findings of fact and conclusions of law;
    (3) Supporting legal arguments for the exceptions and proposed 
findings and conclusions submitted; and
    (4) A proposed order.
    (b) Decision and order. After considering the entire record in the 
proceeding, the administrative law judge will issue a written decision.
    (1) Initial decision. For proceedings charging violations relating 
to section 8 of the EAA, the decision rendered shall be an initial 
decision. The decision will include findings of fact, conclusions of 
law, and findings as to whether there has been a violation of the EAA, 
the EAR, or any order, license or authorization issued thereunder. If 
the administrative law judge finds that the evidence of record is 
insufficient to sustain a finding that a violation has occurred with 
respect to one or more charges, the judge shall order dismissal of the 
charges in whole or in part as appropriate. If the administrative law 
judge finds that one or more violations have been committed, the judge 
may issue an order imposing administrative sanctions, as provided in 
part 764 of this subchapter. The decision and order shall be served on 
each party, and shall become effective as the final decision of the 
Department 30 days after service, unless an appeal is filed in 
accordance with Sec. 766.21 of this part.
    (2) Recommended decision. For proceedings not involving violations 
relating to section 8 of the EAA, the decision rendered shall be a 
recommended decision. The decision will include recommended findings of 
fact, conclusions of law, and findings as to whether there has been a 
violation of the EAA, the EAR or any order, license or authorization 
issued thereunder. If the administrative law judge finds that the 
evidence of record is insufficient to sustain a recommended finding 
that a violation has occurred with respect to one or more charges, the 
judge shall recommend dismissal of any such charge. If the 
administrative law judge finds that one or more violations have been 
committed, the judge shall recommend an order imposing administrative 
sanctions, as provided in part 764 of this subchapter, or such other 
action as the judge deems appropriate. The administrative law judge 
shall immediately certify the record, including the original copy of 
the recommended decision and order, to the Under Secretary for review 
in accordance with Sec. 766.22 of this part. The administrative law 
judge shall also immediately serve the recommended decision on all 
parties. Because of the time limits established in the EAA for review 
by the Under Secretary, service upon parties shall be by personal 
delivery, express mail or other overnight carrier.
    (c) Suspension of sanctions. Any order imposing administrative 
sanctions may provide for the suspension of the sanction imposed, in 
whole or in part and on such terms of probation or other conditions as 
the administrative law judge or the Under Secretary may specify. Any 
suspension order may be modified or revoked by the signing official 
upon application of BXA showing a violation of the probationary terms 
or other conditions, after service on the respondent of notice of the 
application in accordance with the service provisions of Sec. 766.3 of 
this part, and with such opportunity for response as the responsible 
signing official in his discretion may allow. A copy of any order 
modifying or revoking the [[Page 25402]] suspension shall also be 
served on the respondent in accordance with the provisions of 
Sec. 766.3 of this part.
    (d) Time for decision. Administrative enforcement proceedings not 
involving violations relating to section 8 of the EAA shall be 
concluded, including review by the Under Secretary under Sec. 766.22 of 
this part, within one year of the submission of a charging letter, 
unless the administrative law judge, for good cause shown, extends such 
period. The charging letter will be deemed to have been submitted to 
the administrative law judge on the date the respondent files an answer 
or on the date BXA files a motion for a default order pursuant to 
Sec. 766.7(a) of this part, whichever occurs first.


Sec. 766.18  Settlement.

    (a) Cases may be settled before service of a charging letter. In 
such event, a proposed charging letter will be prepared, and a 
settlement proposal consisting of a settlement agreement and order 
submitted to the Assistant Secretary for approval and signature. If the 
Assistant Secretary does not approve the proposal, he/she will notify 
the parties and the case will proceed as though no settlement proposal 
had been made. If the Assistant Secretary approves the proposal, he/she 
will issue an appropriate order, and no action will be required by the 
administrative law judge.
    (b) Cases may also be settled after service of a charging letter. 
(1) If the case is pending before the administrative law judge, the 
administrative law judge shall stay the proceedings for a reasonable 
period of time, usually not to exceed 30 days, upon notification by the 
parties that they have entered into good faith settlement negotiations. 
The administrative law judge may, in his/her discretion, grant 
additional stays. If settlement is reached, a proposal will be 
submitted to the Assistant Secretary for approval and signature. If the 
Assistant Secretary approves the proposal, he/she will issue an 
appropriate order, and notify the administrative law judge that the 
case is withdrawn from adjudication. If the Assistant Secretary does 
not approve the proposal, he/she will notify the parties and the case 
will proceed to adjudication by the administrative law judge as though 
no settlement proposal had been made.
    (2) If the case is pending before the Under Secretary under 
Sec. 766.21 or Sec. 766.22 of this part, the parties may submit a 
settlement proposal to the Under Secretary for approval and signature. 
If the Under Secretary approves the proposal, he/she will issue an 
appropriate order. If the Under Secretary does not approve the 
proposal, the case will proceed to final decision in accordance with 
Sec. 766.21 or Sec. 766.22 of this part, as appropriate.
    (c) If the respondent neither admits nor denies BXA's allegations 
of violation, the order disposing of a case by settlement shall not 
contain a finding of violation.
    (d) Any order disposing of a case by settlement may suspend the 
administrative sanction imposed, in whole or in part, on such terms of 
probation or other conditions as the signing official may specify. Any 
such suspension may be modified or revoked by the signing official, in 
accordance with the procedures set forth in Sec. 766.17(c) of this 
part.
    (e) Any respondent who agrees to an order imposing any 
administrative sanction does so solely for the purpose of resolving the 
claims in the administrative enforcement proceeding brought under this 
part. This reflects the fact that BXA has neither the authority nor the 
responsibility for instituting, conducting, settling, or otherwise 
disposing of criminal proceedings. That authority and responsibility 
are vested in the Attorney General and the Department of Justice.
    (f) Cases that are settled may not be reopened or appealed.


Sec. 766.19  Reopening.

    The respondent may petition the administrative law judge within one 
year of the date of the final decision, except where the decision 
arises from a default judgment or from a settlement, to reopen an 
administrative enforcement proceeding to receive any relevant and 
material evidence which was unknown or unobtainable at the time the 
proceeding was held. The petition must include a summary of such 
evidence, the reasons why it is deemed relevant and material, and the 
reasons why it could not have been presented at the time the 
proceedings were held. The administrative law judge will grant or deny 
the petition after providing other parties reasonable opportunity to 
comment. If the proceeding is reopened, the administrative law judge 
may make such arrangements as the judge deems appropriate for receiving 
the new evidence and completing the record. The administrative law 
judge will then issue a new initial or recommended decision and order, 
and the case will proceed to final decision and order in accordance 
with Sec. 766.21 or Sec. 766.22 of this part, as appropriate.


Sec. 766.20  Record for decision and availability of documents.

    (a) General. The transcript of hearings, exhibits, rulings, orders, 
all papers and requests filed in the proceedings and, for purposes of 
any appeal under Sec. 766.21 of this part or review under Sec. 766.22 
of this part, the decision of the administrative law judge and such 
submissions as are provided for by Secs. 766.21 and 766.22 of this 
part, will constitute the record and the exclusive basis for decision. 
When a case is settled after the service of a charging letter, the 
record will consist of any and all of the foregoing, as well as the 
settlement agreement and the order. When a case is settled before 
service of a charging letter, the record will consist of the proposed 
charging letter, the settlement agreement and the order.
    (b) Restricted access. On the judge's own motion, or on the motion 
of any party, the administrative law judge may direct that there be a 
restricted access portion of the record for any material in the record 
to which public access is restricted by law or by the terms of a 
protective order entered in the proceedings. A party seeking to 
restrict access to any portion of the record is responsible for 
submitting, at the time specified in Sec. 766.20(c)(2) of this part, a 
version of the document proposed for public availability that reflects 
the requested deletion. The restricted access portion of the record 
will be placed in a separate file and the file will be clearly marked 
to avoid improper disclosure and to identify it as a portion of the 
official record in the proceedings. The administrative law judge may 
act at any time to permit material that becomes declassified or 
unrestricted through passage of time to be transferred to the 
unrestricted access portion of the record.
    (c) Availability of documents. (1) Scope. (i) For proceedings 
started on or after October 12, 1979, all charging letters, answers, 
initial and recommended decisions, and orders disposing of a case will 
be made available for public inspection in the BXA Freedom of 
Information Records Inspection Facility, U.S. Department of Commerce, 
Room H-6624, 14th Street and Pennsylvania Avenue N.W., Washington, D.C. 
20230. The complete record for decision, as defined in Sec. 766.20(a) 
and (b) of this part, will be made available on request. In addition, 
all decisions of the Under Secretary on appeal pursuant to Sec. 766.22 
of this part and those final orders providing for denial, suspension or 
revocation of export privileges shall be published in the Federal 
Register. [[Page 25403]] 
    (ii) For proceedings started before October 12, 1979, the public 
availability of the record for decision will be governed by the 
applicable regulations in effect when the proceedings were begun.
    (2) Timing. (i) Antiboycott cases. For matters brought under 
section 8 of the EAA, documents are available immediately upon filing, 
except for any portion of the record for which a request for 
segregation is made. Parties that seek to restrict access to any 
portion of the record under Sec. 766.20(b) of this part must make such 
a request, together with the reasons supporting the claim of 
confidentiality, simultaneously with the submission of material for the 
record.
    (ii) Other cases. In all other cases brought under the EAA, 
documents will be available only after the final administrative 
disposition of the case. In these cases, parties desiring to restrict 
access to any portion of the record under Sec. 766.20(b) of this part 
must assert their claim of confidentiality, together with the reasons 
for supporting the claim, before the close of the proceeding.


Sec. 766.21  Appeals.

    (a) Grounds. For proceedings charging violations relating to 
section 8 of the EAA, a party may appeal to the Under Secretary from an 
order disposing of a proceeding, denying a petition to set aside a 
default or a petition for reopening, or from refusal to approve a 
settlement proposal on the grounds:
    (1) That a necessary finding of fact is omitted, erroneous or 
unsupported by substantial evidence of record;
    (2) That a necessary legal conclusion or finding is contrary to 
law;
    (3) That prejudicial procedural error occurred, or
    (4) That the decision or the extent of sanctions is arbitrary, 
capricious or an abuse of discretion. The appeal must specify the 
grounds on which the appeal is based and the provisions of the order 
from which the appeal is taken.
    (b) Filing of appeal. An appeal of an order must be filed with the 
Office of the Under Secretary for Export Administration, Bureau of 
Export Administration, U.S. Department of Commerce, Room H-3898, 14th 
Street and Constitution Avenue N.W., Washington, D.C. 20230, within 30 
days after service of the order appealed from. If the Under Secretary 
cannot act on an appeal for any reason, the Under Secretary will 
designate another Department of Commerce official to receive and act on 
the appeal.
    (c) Effect of appeal. The filing of an appeal shall not stay the 
operation of any order, unless the order by its express terms so 
provides or unless the Under Secretary, upon application by a party and 
with opportunity for response, grants a stay.
    (d) Appeal procedure. The Under Secretary normally will not hold 
hearings or entertain oral argument on appeals. A full written 
statement in support of the appeal must be filed with the appeal and be 
simultaneously served on all parties, who shall have 30 days from 
service to file a reply. At his/her discretion, the Under Secretary may 
accept new submissions, but will not ordinarily accept those 
submissions filed more than 30 days after the filing of the reply to 
the appellant's first submission.
    (e) Decisions. The decision will be in writing and will be 
accompanied by an order signed by the Under Secretary giving effect to 
the decision. The order may either dispose of the case by affirming, 
modifying or reversing the order of the administrative law judge or may 
refer the case back to the administrative law judge for further 
proceedings.


Sec. 766.22  Review by Under Secretary.

    (a) Recommended decision. For proceedings not involving violations 
relating to section 8 of the EAA, the administrative law judge shall 
immediately refer the recommended decision and proposed order to the 
Under Secretary. Because of the time limits provided under the EAA for 
review by the Under Secretary, service of the recommended decision on 
the parties, all papers filed by the parties in response, and the final 
decision of the Under Secretary must be by personal delivery, 
facsimile, express mail or other overnight carrier. If the Under 
Secretary cannot act on a recommended decision for any reason, the 
Under Secretary will designate another Department of Commerce official 
to receive and act on the recommendation.
    (b) Submissions by parties. Parties shall have 12 days from the 
date of issuance of the recommended decision in which to submit 
simultaneous responses. Parties thereafter shall have 8 days from 
receipt of any response(s) in which to submit replies. Any response or 
reply must be received within the times specified by the Under 
Secretary.
    (c) Final decision. Within 30 days after receipt of the recommended 
decision, the Under Secretary shall issue a written order affirming, 
modifying or vacating the recommended decision of the administrative 
law judge. If he/she vacates the recommended decision, the Under 
Secretary may refer the case back to the administrative law judge for 
further proceedings. Because of the time limits, the Under Secretary's 
review will ordinarily be limited to the written record for decision, 
including the transcript of any hearing, and any submissions by the 
parties concerning the recommended decision.
    (d) Delivery. The final decision and implementing order shall be 
served on the parties and will be publicly available in accordance with 
Sec. 766.20 of this part.
    (e) Appeals. The charged party may appeal the Under Secretary's 
written order within 15 days to the United States Court of Appeals for 
the District of Columbia pursuant to 50 U.S.C. app. 2412(c)(3).


Sec. 766.23  Related persons.

    (a) General. In order to prevent evasion, certain types of orders 
under this part may be made applicable not only to the respondent, but 
also to other persons then or thereafter related to the respondent by 
ownership, control, position of responsibility, affiliation, or other 
connection in the conduct of trade or related services. Orders that may 
be made applicable to related persons include those that deny or affect 
export privileges, including temporary denial orders, and those that 
exclude a respondent from practice before BXA.
    (b) Procedures. The procedures for making orders applicable to 
related persons are as follows:
    (1) If, at the time an order is issued, BXA has reason to believe 
that a person is related to the respondent, BXA will name that related 
person in the order; and
    (2) If, subsequent to the time an order is issued, BXA has reason 
to believe that a person is related to the respondent, BXA shall, 
through the Office of Chief Counsel for Export Administration, give 
that person notice and an opportunity to comment why the order should 
not be made applicable to that person. The Assistant Secretary may, 
thereafter, issue an order naming that person as related to the 
respondent.
    (c) Appeals. Any person named by BXA in an order as related to the 
respondent may file an appeal with the administrative law judge. The 
sole issue to be raised and ruled on in any such appeal is whether the 
person so named is related to the respondent. The recommended decision 
and proposed order of the administrative law judge shall be reviewed by 
the Under Secretary in accordance with the procedures set forth in 
Sec. 766.22 of this part. [[Page 25404]] 


Sec. 766.24  Temporary denials.

    (a) General. The procedures in Sec. 766.24 of this part apply to 
temporary denial orders issued on or after July 12, 1985. For temporary 
denial orders issued on or before July 11, 1985, the proceedings will 
be governed by the applicable regulations in effect at the time the 
temporary denial orders were issued. Without limiting any other action 
BXA may take under the EAR with respect to any application, order, 
license or authorization issued under the EAA, BXA may ask the 
Assistant Secretary to issue a temporary denial order on an ex parte 
basis to prevent an imminent violation, as defined in paragraph (b) of 
this section, of the EAA, the EAR, or any order, license or 
authorization issued thereunder. The temporary denial order will deny 
any or all of the export privileges specified in part 764 of this 
subchapter to any person named in the order.
    (b) Issuance. (1) The Assistant Secretary may issue an order 
temporarily denying to a party any or all of the export privileges 
specified in part 764 of this subchapter upon a showing by BXA that the 
order is necessary in the public interest to prevent an imminent 
violation of the EAA, the EAR, or any order, license or authorization 
issued thereunder.
    (2) The temporary denial order shall define the imminent violation 
and state why it was issued without a hearing. Because all denial 
orders are public, the description of the imminent violation and the 
reasons for proceeding on an ex parte basis set forth therein shall be 
stated in a manner that is consistent with national security, foreign 
policy and investigative concerns.
    (3) A violation may be ``imminent'' either in time or in degree of 
likelihood. To establish grounds for the temporary denial order, BXA 
may show either that a violation is about to occur, or that the general 
circumstances of the matter under investigation or case under criminal 
or administrative charges demonstrate a likelihood of future 
violations. In support of its position concerning the likelihood of 
future violations, BXA may show that the violation under investigation 
or charges is significant, deliberate, covert and/or likely to occur 
again, rather than technical or negligent, and that it is appropriate 
to give notice to companies in the United States and abroad to cease 
dealing with the person in U.S.-origin items in order to reduce the 
likelihood that a person under investigation or charges continues to 
export or acquire abroad such items, risking subsequent disposition 
contrary to export control requirements. Lack of information 
establishing the precise time a violation may occur does not preclude a 
finding that a violation is imminent, so long as there is sufficient 
reason to believe the likelihood of a violation.
    (4) The temporary denial order will be issued for a period not 
exceeding 180 days.
    (c) Related persons. In order to prevent evasion or circumvention 
of the temporary denial order, the order or any renewal thereof may 
name and deny export privileges to, in addition to any person 
designated as a respondent, any other person who is then related to the 
respondent by ownership, control, position of responsibility, 
affiliation, or other connection in the conduct of trade or business. 
BXA may seek to add to a temporary denial order, at a time other than 
initial issuance or renewal, any person who BXA then has reason to 
believe is related to a respondent by following the procedures in 
Sec. 766.23 of this part.
    (d) Renewal. (1) If, no later than 20 days before the expiration 
date of a temporary denial order, BXA believes that renewal of the 
denial order is necessary in the public interest to prevent an imminent 
violation, BXA may file a written request setting forth the basis for 
its belief, including any additional or changed circumstances, asking 
that the Assistant Secretary renew the temporary denial order, with 
modifications, if any are appropriate, for an additional period not 
exceeding 180 days. BXA's request shall be delivered to the respondent, 
or any agent designated for this purpose, in accordance with 
Sec. 766.5(b) of this part which will constitute notice of the renewal 
application.
    (2) Non-resident respondents. To facilitate timely notice of 
renewal requests, a respondent not a resident of the United States may 
designate a local agent for this purpose and provide written 
notification of such designation to BXA in the manner set forth in 
Sec. 766.5(b) of this part.
    (3) Hearing. (i) A respondent may oppose renewal of a temporary 
denial order by filing with the Assistant Secretary a written 
submission, supported by appropriate evidence, to be received not later 
than seven days before the expiration date of such order. For good 
cause shown, the Assistant Secretary may consider submissions received 
not later than five days before the expiration date. The Assistant 
Secretary ordinarily will not allow discovery; however, for good cause 
shown in respondent's submission, he/she may allow the parties to take 
limited discovery, consisting of a request for production of documents. 
If requested by the respondent in the written submission, the Assistant 
Secretary shall hold a hearing on the renewal application. The hearing 
shall be on the record and ordinarily will consist only of oral 
argument. The only issue to be considered on BXA's request for renewal 
is whether the temporary denial order should be continued to prevent an 
imminent violation as defined in this section.
    (ii) Any person designated as a related person may not oppose 
issuance or renewal of the temporary denial order but may file an 
appeal in accordance with Sec. 766.24(e) of this part.
    (iii) If no written opposition to BXA's renewal request is received 
within the specified time, the Assistant Secretary may issue the order 
renewing the temporary denial order without a hearing.
    (4) A temporary denial order may be renewed more than once.
    (e) Appeals. (1) Filing. (i) A respondent may, at any time, file an 
appeal of the initial or renewed temporary denial order with the 
administrative law judge.
    (ii) The filing of an appeal shall stay neither the effectiveness 
of the temporary denial order nor any application for renewal, nor will 
it operate to bar the Assistant Secretary's consideration of any 
renewal application.
    (2) Grounds. Grounds for an appeal must be specified.
    (i) A respondent may appeal to the administrative law judge from an 
order issuing or renewing a temporary denial order on the ground that a 
finding of an imminent violation is unsupported.
    (ii) Any related person may appeal any finding that he/she is 
related to a respondent, but may not appeal the underlying issuance or 
renewal of the temporary denial order.
    (3) Appeal procedure. A full written statement in support of the 
appeal must be filed with the appeal together with appropriate 
evidence, and be simultaneously served on BXA, which shall have seven 
days from receipt to file a reply. Service on the administrative law 
judge shall be addressed to the Office of the Administrative Law Judge, 
U.S. Department of Commerce, Room H-6716, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230. Service on BXA shall be as set 
forth in Sec. 766.5(b) of this part. The administrative law judge 
normally will not hold hearings or entertain oral argument on appeals.
    (4) Recommended decision. Within 10 working days after an appeal is 
filed, the administrative law judge shall submit a 
[[Page 25405]] recommended decision to the Under Secretary, and serve 
copies on the parties, stating whether the issuance or the renewal of 
the temporary denial order should be affirmed, modified or vacated.
    (5) Final decision. Within five working days after receipt of the 
recommended decision, the Under Secretary shall issue a written order 
accepting, rejecting or modifying the recommended decision. Because of 
the time constraints, the Under Secretary's review will ordinarily be 
limited to the written record for decision, including the transcript of 
any hearing. The issuance or renewal of the temporary denial order 
shall be affirmed only if there is reason to believe that the temporary 
denial order is required in the public interest to prevent an imminent 
violation of the EAA, the EAR, or any order, license or other 
authorization issued under the EAA. The Under Secretary's written order 
is final and is not subject to judicial review, except as provided in 
Sec. 766.24(g) of this part.
    (f) Delivery. A copy of any temporary denial order issued or 
renewed and any final decision on appeal shall be published in the 
Federal Register and shall be delivered to BXA and to the respondent, 
or any agent designated for this purpose, and to any related person in 
the same manner as provided in Sec. 766.5 of this part for filing for 
papers other than a charging letter.
    (g) Judicial review. A respondent temporarily denied export 
privileges by order of the Under Secretary may appeal to the United 
States Court of Appeals for the District of Columbia pursuant to 50 
U.S.C. app. 2412(d)(3).


Sec. 766.25  Administrative action denying permission to apply for or 
use export licenses.

    (a) General. The Director of the Office of Exporter Services, in 
consultation with the Director of the Office of Export Enforcement, may 
deny permission to apply for or use any export license, including any 
license exceptions, to any person who has been convicted of a violation 
of the EAA, the EAR, or any order, license or authorization issued 
thereunder; any regulation, license or order issued under the 
International Emergency Economic Powers Act (50 U.S.C. 1701-1706); 18 
U.S.C. 793, 794 or 798; Section 4(b) of the Internal Security Act of 
1950 (50 U.S.C. 783(b)), or Section 38 of the Arms Export Control Act 
(22 U.S.C. 2778).
    (b) Procedure. Upon notification that a person has been convicted 
of a violation of one or more of the provisions specified in paragraph 
(a) of this section, the Director of the Office of Exporter Services, 
in consultation with the Director of the Office of Export Enforcement, 
will determine whether to deny permission to apply for or use any 
export license, including any license exception, to any such person. 
The Director of the Office of Exporter Services, will notify each 
person denied under this section by letter stating that permission to 
apply for or use export licenses has been denied.
    (c) Criteria. In determining whether and for how long to deny U.S. 
export privileges to a person previously convicted of one or more of 
the statutes set forth in paragraph (a) of this section, the Director 
of the Office of Exporter Services, may take into consideration any 
relevant information, including, but not limited to, the seriousness of 
the offense involved in the criminal prosecution, the nature and 
duration of the criminal sanctions imposed, and whether the person has 
undertaken any corrective measures.
    (d) Duration. Any denial of permission to apply for or use export 
licenses, including any license exception, under this section shall not 
exceed 10 years.
    (e) Effect. Any person denied permission to apply for and use 
licenses under this section will be considered a ``person denied export 
privileges'' for purposes of Sec. 734.2(b)(4) (General Prohibition 4--
Engage in actions prohibited by a denial order) and Sec. 764.2(k) of 
this subchapter.
    (f) Publication. The name and address(es) of any person denied 
permission to apply for or use export licenses under this section will 
be published in Supplement No. 2 to part 764 of this subchapter, noting 
that such action was taken pursuant to this section and section 11(h) 
of the EAA.
    (g) Appeal. An appeal of an action under this section will be 
pursuant to part 756 of this subchapter.
    (h) Applicability to related person. The Director of the Office of 
Exporter Services, in consultation with the Director of the Office of 
Export Enforcement, may, through the Office of Chief Counsel for Export 
Administration, notify any person related through affiliation, 
ownership, control, or position of responsibility to any person denied 
export privileges under paragraph (a) of this section, of his/her 
intent to deny that person permission to apply for or use any export 
license, including any license exceptions. Such person so notified may 
request a hearing by filing a request for a hearing with the Office of 
the Administrative Law Judge, Room H-6716, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230, and by serving a copy of the 
request for a hearing on the Office of Chief Counsel for Export 
Administration, Room H-3839, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230. The sole issue to be raised and ruled on under 
this paragraph is whether the person notified is, in fact, related to 
any person denied export privileges under paragraph (a) of this 
section, and not the scope or duration of the underlying denial. The 
procedures set forth in this part will apply to any hearing requested 
under this paragraph.

PART 768--FOREIGN AVAILABILITY DETERMINATION PROCEDURES AND 
CRITERIA

Sec.
768.1  Introduction.
768.2  Foreign availability described.
768.3  Foreign availability assessment.
768.4  Initiation of an assessment.
768.5  Contents of foreign availability submissions and Technical 
Advisory Committee certifications.
768.6  Criteria.
768.7  Procedures.
768.8  Eligibility of expedited licensing procedures for non-
controlled countries.
768.9  Appeals of negative foreign availability determinations.
768.10  Removal of controls on less sophisticated items.

Supplement No. 1 to Part 768--Evidence of Foreign Availability

Supplement No. 2 to Part 768--Items Eligible for Expedited Licensing 
Procedures--[Reserved]

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 768.1  Introduction.

    (a) Authority. Pursuant to sections 5(f) and 5(h) of the Export 
Administration Act of 1979, as amended (EAA), the Under Secretary of 
Commerce for Export Administration directs the Bureau of Export 
Administration (BXA) in gathering and analyzing all the evidence 
necessary for the Secretary to determine foreign availability.
    (b) Scope. This part applies only to the extent that items are 
controlled for national security purposes.
    (c) Types of programs. There are two general programs of foreign 
availability:
    (1) Foreign availability to controlled countries. In this category 
are denied license assessments (see Secs. 768.4(b) and 768.7 of this 
part) and decontrol assessments (see Secs. 768.4(c) and 768.7 of this 
part).
    (2) Foreign availability to non-controlled countries. In this 
category are [[Page 25406]] denied license assessments, decontrol 
assessments, and evaluations of eligibility for expedited licensing 
(see Sec. 768.8 of this part).
    (d) Definitions. The following are definitions of terms used in 
this part 768:
    Allegation. See Foreign availability submission.
    Applicant. Any person or firm as defined in part 772 of this 
subchapter.
    Assessment. An evidentiary analysis that BXA conducts concerning 
the foreign availability of a given item in light of the assessment 
criteria, data gathered by BXA, and the data and recommendations 
submitted by the Departments of Defense and State and other relevant 
departments and agencies, TAC committees, and industry.
    Assessment criteria. Statutorily established criteria that must be 
assessed for the Secretary to make a determination with respect to 
foreign availability. They are: ``available-in-fact''; ``from a non-
U.S. source''; ``in sufficient quantity so as to render the control 
ineffective''; and ``of comparable quality''. (See Sec. 768.6 of this 
part).
    Available-in-fact. An item is ``available-in-fact'' to a country if 
it is produced within the country or if it may be obtained by that 
country from a third country. (Ordinarily, items will not be considered 
available-in-fact to non-controlled countries that are available only 
under a validated national security license or a comparable 
authorization from a country that maintains export controls on such 
items cooperatively with the United States.
    Claimant. Any applicant who makes a foreign availability 
submission, excluding TACs.
    Comparable quality. An item is of comparable quality to an item 
controlled under the regulations in this subchapter if it possesses the 
characteristics specified in the Commerce Control List for that item 
and is alike in key characteristics that include, but are not limited 
to: (1) function; (2) technological approach; (3) performance 
thresholds; (4) maintainability and service life; and (5) any other 
attribute relevant to the purpose for which the control was placed on 
the commodity.
    Controlled countries. Albania, Armenia, Azerbaijan, Belarus, 
Bulgaria, Cambodia, Cuba, Estonia, Georgia, Kazakhstan, Kyrgystan, 
Laos, Latvia, Lithuania, Moldova, Mongolia, North Korea, Russia, 
Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Vietnam and the People's 
Republic of China.
    Decontrol. Removal of license requirements under the Export 
Administration Regulations (EAR).
    Decontrol assessment. An assessment of the foreign availability of 
an item to a country or countries for purposes of determining whether 
decontrol is warranted. Such assessments may be conducted after the 
Department receives a foreign availability submission or a TAC 
certification, or on the Secretary's own initiative.
    Denied license assessment. A foreign availability assessment 
conducted as a result of an applicant's allegation of foreign 
availability for an item (or items) for which the Department of 
Commerce has denied or has issued a letter of intent to deny a license. 
If the Secretary finds foreign availability, the Department's approval 
of a license will be limited to the items, countries, and quantities in 
the application.
    Determination. The Secretary's decision that foreign availability 
within the meaning of the EAA does or does not exist. (See Sec. 768.7 
of this part).
    Expedited licensing procedure eligibility evaluation. An evaluation 
that BXA initiates for the purpose of determining whether an item is 
eligible for the expedited licensing procedure. (See Sec. 768.8 of this 
part).
    Expedited licensing procedures. Under expedited licensing 
procedures, BXA reviews and processes a license application for the 
export of an eligible item to a non-controlled country within statutory 
time limits. Licenses are deemed approved unless BXA denies within the 
statutory time limits (See Sec. 768.8 of this part).
    Foreign availability submission (FAS). An allegation of foreign 
availability: a claimant makes, supported by reasonable evidence, and 
submits to BXA. (See Sec. 768.5 of this part).
    Item. Any commodity, technology, or software.
    Item eligible for non-controlled country expedited licensing 
procedures. An item is eligible for expedited licensing procedures if 
it is described as such in Supplement No. 2 of part 768 (See Sec. 768.8 
of this part).
    National Security Override (NSO). A Presidential decision to 
maintain export controls on an item notwithstanding its foreign 
availability as determined under the EAA. The President's decision is 
based on his determination that the absence of the controls would prove 
detrimental to the national security of the United States. Once the 
President makes such a decision, the President must actively pursue 
negotiations to eliminate foreign availability with the governments of 
the sources of foreign availability. (See Sec. 768.7 of this part).
    Non-controlled countries. Any country not listed as a controlled 
country.
    Non-U.S. source/foreign source. A person located outside the 
jurisdiction of the United States (as defined in part 772 of this 
subchapter) that makes an item available.
    Reasonable evidence. Relevant information that is credible.
    Reliable evidence. Relevant information that is credible and 
dependable.
    Secretary. As used in this subchapter, the Secretary refers to the 
Secretary of Commerce or designee.
    Similar quality. An item is of similar quality to an item that is 
controlled under the EAR if it is substantially alike in key 
characteristics that may include, but are not limited to: (1) function; 
(2) technological approach; (3) performance thresholds; (4) 
maintainability and service life; and (5) any other attribute relevant 
to the purpose for which the control was placed on the commodity.
    Sufficient quantity. The amount of an item that would render the 
U.S. export control, or the denial of the license in question, 
ineffective in achieving its purpose with respect to a particular 
country or countries. For a controlled country, it is the quantity that 
meets the military needs of that country so that U.S. exports of the 
item to that country would not make a significant contribution to its 
military potential.
    Technical Advisory Committee (TAC). A Committee created under 
section 5(h) of the EAA that advises and assists the Secretary of 
Commerce, the Secretary of Defense, and any other department, agency, 
or official of the Government of the United States to which the 
President delegates authority under the Export Administration Act on 
export control matters related to specific areas of controlled goods 
and technology.
    TAC certification. A statement that a TAC submits to BXA, supported 
by reasonable evidence, documented as in a FAS, that foreign 
availability to a controlled country exists for an item that falls 
within the TAC's area of technical expertise.


Sec. 768.2  Foreign availability described.

    (a) Foreign availability. Foreign availability exists when the 
Secretary determines that an item is comparable in quality to an item 
subject to U.S. national security export controls, and is available-in-
fact to a country, from a non-U.S. source, in sufficient quantities to 
render the U.S. export control of that item or the denial of a license 
ineffective. For a controlled country, such control or denial is 
``ineffective'' when maintaining such control or [[Page 25407]] denying 
a specific license would not restrict the availability of goods or 
technology that would make a significant contribution to the military 
potential of the controlled country or combination of countries that 
would prove detrimental to the national security of the United States 
(See sections 5(A) and 3(2)(A) of the EAA.)
    (b) Types of foreign availability. There are two types of foreign 
availability:
    (1) Foreign availability to a controlled country; and
    (2) Foreign availability to a non-controlled country.

(Note: See Sec. 768.7 of this part for delineation of the foreign 
availability assessment procedures, and Sec. 768.6 of this part for 
the criteria used in determining foreign availability)


Sec. 768.3  Foreign availability assessment.

    (a) Foreign availability assessment. A foreign availability 
assessment is an evidentiary analysis that the Bureau of Export 
Administration (BXA) conducts to assess the foreign availability of a 
given item under the assessment criteria. BXA uses the results of the 
analysis in formulating its recommendation to the Secretary on whether 
foreign availability exists for a given item. If the Secretary 
determines that foreign availability exists, the Secretary will 
decontrol the item or approve the license in question, unless the 
President exercises a National Security Override. (See Sec. 768.7 of 
this part.)
    (b) Types of assessments. There are two types of foreign 
availability assessments:
    (1) Denied license assessment; and
    (2) Decontrol assessment.
    (c) Expedited licensing procedures. See Sec. 768.8 of this part for 
the evaluation of eligibility of an item for the Expedited Licensing 
Procedures.


Sec. 768.4  Initiation of an assessment.

    (a) Assessment request. To initiate an assessment, each claimant 
and TAC must submit a FAS or a TAC Certification to BXA. TACs are 
authorized to certify foreign availability only to controlled 
countries. Claimants can allege foreign availability for either 
controlled or non-controlled countries.
    (b) Denied license assessment. A license applicant whose license 
the Department of Commerce has denied, or on which it has issued a 
letter of intent to deny, on national security grounds may request that 
BXA initiate a denied license assessment by submitting a FAS within 90 
days after denial of the license. As part of its submission, the 
claimant must request that the specified license application be 
approved on the grounds of foreign availability. The evidence must 
relate to the particular export as described on the license application 
and to the alleged comparable item. If foreign availability is found, 
the Secretary will approve the license for the specific items, 
countries, and quantities listed on the application. The denied license 
assessment procedure, however, is not intended to trigger the removal 
of the U.S. export control on an item by incrementally providing a 
country with amounts that taken together would constitute a sufficient 
quantity of an item. The Secretary will not approve on foreign 
availability grounds a denied license if the approval of such license 
would itself render the U.S. export control ineffective in achieving 
its purpose with respect to a particular country or countries. In the 
case of a positive determination, the Secretary will determine whether 
a decontrol assessment is warranted. If so, then BXA will initiate a 
decontrol assessment.
    (c) Decontrol assessment. (1) Any claimant may at any time request 
that BXA initiate a decontrol assessment by making a FAS to BXA 
alleging foreign availability to any country or countries.
    (2) A TAC may request that BXA initiate a decontrol assessment at 
any time by submitting a TAC Certification to BXA that there is foreign 
availability to a controlled country for items that fall within the 
area of the TAC's technical expertise.
    (3) The Secretary, on his/her own initiative, may initiate a 
decontrol assessment.
    (d) BXA mailing address. All foreign availability submissions and 
TAC certifications are to be submitted to: Department of Commerce, 
Bureau of Export Administration, 14th and Pennsylvania Avenue, NW, Room 
3877, Washington, DC 20230.


Sec. 768.5  Contents of foreign availability submissions and Technical 
Advisory Committee certifications.

    (a) All foreign availability submissions must contain at least:
    (1) The name of the claimant;
    (2) The claimant's mailing and business address;
    (3) The claimant's telephone number; and
    (4) A contact point and telephone number.
    (b) Foreign availability submissions and TAC certifications should 
contain as much evidence as is available to support the claim, 
including, but not limited to:
    (1) Product names and model designations of the items alleged to be 
comparable;
    (2) Extent to which the alleged comparable item is based on U.S. 
technology;
    (3) Names and locations of the non-U.S. sources and the basis for 
claiming that the item is a non-U.S. source item;
    (4) Key performance elements, attributes, and characteristics of 
the items on which a qualitative comparison may be made;
    (5) Non-U.S. source's production quantities and/or sales of the 
alleged comparable items and marketing efforts;
    (6) Estimated market demand and the economic impact of the control;
    (7) Product names, model designations, and value of U.S. controlled 
parts and components incorporated in the items alleged to be 
comparable; and
    (8) The basis for the claim that the item is available-in-fact to 
the country or countries for which foreign availability is alleged.
    (c) Supporting evidence of foreign availability may include, but is 
not limited to, the following: foreign manufacturers' catalogs, 
brochures, operation or maintenance manuals; articles from reputable 
trade and technical publications; photographs; depositions based on 
eyewitness accounts; and other credible evidence. Examples of 
supporting evidence are provided in Supplement No. 1 to part 768.
    (d) Upon receipt of a FAS or TAC certification, BXA will review it 
to determine whether there is sufficient evidence to support the belief 
that foreign availability may exist. If BXA determines the FAS or TAC 
certification is lacking in supporting evidence, BXA will seek 
additional evidence from appropriate sources, including the claimant or 
TAC, BXA will initiate the assessment when it determines that it has 
sufficient evidence that foreign availability may exist. Claimant and 
TAC initiated assessments will be deemed to be initiated as of the date 
of such determination.
    (e) Claimants and TACs are advised to review the foreign 
availability assessment criteria delineated in Sec. 768.6 of this part 
and the examples of evidence set forth in Supplement No. 1 to part 768 
when assembling supporting evidence for inclusion in the FAS or TAC 
certification.


Sec. 768.6  Criteria.

    (a) Introduction. BXA evaluates the evidence contained in a FAS or 
TAC certification and all other evidence gathered in the assessment 
process in light of certain criteria that must be met before BXA can 
recommend a positive determination to the Secretary. In order 
[[Page 25408]] to initiate an assessment, each FAS and TAC 
certification should address each of these criteria. The criteria are 
statutorily prescribed and are:
    (1) Available-in-fact;
    (2) Non-U.S. source;
    (3) Sufficient quantity; and
    (4) Comparable quality.
    (b) Related definition. The criteria are defined in Sec. 768.1(d) 
of this part.


Sec. 768.7  Procedures.

    (a) Initiation of an assessment. (1) Once BXA accepts a FAS or TAC 
certification of foreign availability, BXA will notify the claimant or 
TAC that it is initiating the assessment.
    (2) The Bureau of Export Administration will publish a Federal 
Register notice of the initiation of any assessment.
    (3) BXA will notify the Departments of Defense and State, the 
intelligence community, and any other departments, agencies and their 
contractors that may have information concerning the item on which BXA 
has initiated an assessment. Each such department, agency, and 
contractor shall provide to BXA all relevant information that it has 
concerning the item. BXA will invite interested departments and 
agencies to participate in the assessment process (See paragraph (e) of 
this section for details).
    (b) Data gathering. BXA will seek and consider all available 
information that bears upon the presence or absence of foreign 
availability, including but not limited to that evidence set out in 
Sec. 768.5(b) and (c) of this part. As soon as Commerce initiates the 
assessment, it will seek evidence relevant to the assessment, including 
an analysis of the military needs of a selected country or countries, 
technical analysis, and intelligence information from the Departments 
of Defense and State, and other U.S. agencies. Evidence is particularly 
sought from industry sources worldwide; other U.S. organizations; 
foreign governments; commercial, academic and classified data bases; 
scientific and engineering research and development organizations; and 
international trade fairs.
    (c) Analysis. BXA conducts its analysis by evaluating whether the 
reasonable and reliable evidence that is relevant to each of the 
foreign availability criteria provides a sufficient basis for a 
recommendation for a determination that foreign availability does or 
does not exist.
    (d) Recommendation and determination. (1) Upon completion of each 
assessment, BXA on the basis of its analysis, recommends to the 
Secretary of Commerce that the Secretary make a determination either 
that there is or that there is not foreign availability, whichever the 
evidence supports. BXA's assessment upon which BXA based its 
recommendation accompanies the recommendation to the Secretary.
    (2) BXA will recommend on the basis of its analysis that the 
Secretary determine that foreign availability exists to a country when 
the available evidence demonstrates that an item of comparable quality 
is available-in-fact to the country, from non-U.S. sources, in 
sufficient quantity so that continuation of the existing export 
control, or denial of the license application in question would be 
ineffective in achieving its purpose. For a controlled country, such 
control or denial is ``ineffective'' when comparable items are 
available-in-fact from foreign sources in sufficient quantities so that 
maintaining such control or denying a license would not be effective in 
restricting the availability of goods and technology which would make a 
significant contribution to the military potential of any country or 
combination of countries which would prove detrimental to the national 
security of the United States.
    (3) The Secretary makes the determination of foreign availability 
on the basis of the BXA assessment and recommendation; the Secretary's 
determination takes into account the evidence provided to BXA, the 
recommendations of the Secretaries of Defense and State and any other 
interested agencies, and any other information that the Secretary 
considers relevant.
    (4) For all decontrol and denied license assessments (pursuant to 
section 5(f)(3) of the EAA) initiated by a FAS, the Secretary makes a 
determination within 4 months of the initiation of the assessment and 
so notifies the claimant. The Secretary submits positive determinations 
for review to appropriate departments and agencies.
    (5) The deadline for determinations based on self-initiated and 
TAC-initiated assessments are different than the deadlines for 
claimant-initiated assessments (see paragraphs (f)(2) and (f)(3) of 
this section).
    (e) Interagency review. Commerce notifies all appropriate U.S. 
agencies and Departments upon the initiation of the assessment and 
invites them to participate in the assessment process. Commerce 
provides all interested agencies and departments an opportunity to 
review source material, draft analyses and draft assessments 
immediately upon their receipt or production. For claimant-initiated 
assessments, Commerce provides a copy of all positive recommendations 
and assessments to interested agencies and departments for their review 
following the Secretary's determination of foreign availability. For 
self-initiated and TAC-initiated assessments, Commerce provides all 
interested agencies an opportunity to review and comment on the 
assessment.
    (f) Notification. (1) No later than 5 months after the initiation 
of an assessment based on a FAS (claimant assessments), the Secretary 
informs the claimant in writing and submits for publication in the 
Federal Register a notice to the effect that:
    (i) Foreign availability exists, and
    (A) The requirement of a license has been removed or the license 
application in question has been approved; or
    (B) The President has determined that for national security 
purposes the export controls must be maintained or the license 
application must be denied, notwithstanding foreign availability, and 
that appropriate steps to eliminate the foreign availability are being 
initiated; or
    (C) In the case of an item controlled multilaterally under the 
COCOM Successor Regime, the U.S. Government will submit the proposed 
decontrol or approval of the license for COCOM Successor Regime review 
for a period of up to 4 months from the date of the publication of the 
determination in the Federal Register (The U.S. Government may remove 
the license requirement for exports to non-controlled countries pending 
completion of the COCOM Successor Regime review process.); or
    (ii) Foreign availability does not exist.
    (2) For all TAC certification assessments, the Secretary makes a 
foreign availability determination within 90 days following initiation 
of the assessment. BXA prepares and submits a report to the TAC and to 
the Congress stating that:
    (i) The Secretary has found foreign availability and has removed 
the license requirement; or
    (ii) The Secretary has found foreign availability, but has 
recommended to the President that negotiations be undertaken to 
eliminate the foreign availability; or
    (iii) The Secretary has not found foreign availability.
    (3) There is no statutory deadline for assessments initiated on the 
Secretary's own initiative or for the resulting determination. However, 
the Department will make every effort to complete such assessments and 
determinations promptly.
    (g) Foreign availability to controlled countries. When the 
Secretary [[Page 25409]] determines that an item controlled for 
national security reasons is available to a controlled country and the 
President does not issue an NSO, BXA submits the determination to the 
Department of State, along with a draft proposal for the multilateral 
decontrol of the item or for COCOM Successor Regime approval of the 
license. The Department of State submits the proposal or the license to 
the COCOM Successor Regime review process. The COCOM Successor Regime 
has up to 4 months for review of the proposal.
    (h) Foreign availability to non-controlled countries. If the 
Secretary determines that foreign availability to non-controlled 
countries exists, the Secretary will decontrol the item for export to 
all non-controlled countries to which it is found to be available, or 
approve the license in question, unless the President exercises a 
National Security Override.
    (i) Negotiations to eliminate foreign availability. (1) The 
President may determine that an export control must be maintained 
notwithstanding the existence of foreign availability. Such a 
determination is called a National Security Override (NSO) and is based 
on the President's decision that the absence of the control would prove 
detrimental to the United States national security. Unless extended (as 
described in paragraph (i)(7) of this section), an NSO is effective for 
6 months. Where the President invokes an NSO, the U.S. Government will 
actively pursue negotiations with the government of any source country 
during the 6 month period to eliminate the availability.
    (2) There are two types of National Security Overrides:
    (i) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(f) of the EAA 
(claimant and self-initiated assessments); and
    (ii) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(h) of the EAA (TAC-
certification assessments).
    (3) For an NSO resulting from an assessment initiated pursuant to 
section 5(f) of the EAA, the Secretary of any agency may recommend that 
the President exercise the authority under the Act to retain the 
controls or deny the license notwithstanding the finding of foreign 
availability.
    (4) For an NSO resulting from an assessment initiated pursuant to 
section 5(h) of the EAA, the Secretary of Commerce may recommend that 
the President exercise the authority under the Act to retain the 
controls notwithstanding the finding of foreign availability.
    (5) Under an NSO resulting from an assessment initiated pursuant to 
section 5(f) of the EAA, the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Foreign Affairs of the House 
of Representatives will be notified of the initiation of the required 
negotiations. The notice will include an explanation of the national 
security interest that necessitates the retention of controls.
    (6) Under an NSO resulting from an assessment initiated pursuant to 
section 5(f) of the EAA, the Bureau of Export Administration will 
publish notices in the Federal Register of:
    (i) The Secretary's determination of foreign availability;
    (ii) The President's decision to exercise the National Security 
Override;
    (iii) A concise statement of the basis for the President's 
decision; and
    (iv) An estimate of the economic impact of the decision.
    (7) The 6 month effective period for an NSO may be extended up to 
an additional 12 months if prior to the end of the 6 months the 
President certifies to Congress that the negotiations are progressing, 
and determines that the absence of the controls would continue to be 
detrimental to the United States national security.
    (8) After the conclusion of negotiations, the Department of 
Commerce will retain the control only to the extent that foreign 
availability is eliminated. If foreign availability is not eliminated, 
the Department of Commerce will decontrol the item by removing the 
requirement for a license for the export of the item to the 
destinations covered by the assessment. To the extent that the 
negotiations are successful and the foreign availability is eliminated, 
Commerce will remove the license requirement for the export of the item 
to any country that has agreed to eliminate foreign availability.
    (j) Changes in foreign availability. If BXA becomes aware of 
conditions, including new evidence, that affect a previous 
determination that foreign availability exists or does not exist, BXA 
may review the conditions. If BXA finds that the foreign availability 
previously determined no longer exists, or that foreign availability 
not earlier found now does exist, the Office will make a recommendation 
to the Secretary of Commerce for the appropriate changes in the 
control. The Secretary of Commerce will make a determination, and the 
Bureau of Export Administration will publish a Federal Register notice 
of the determination.


Sec. 768.8  Eligibility for expedited licensing procedure for non-
controlled countries.

    (a) BXA determines the eligibility of an item for expedited 
licensing procedures on the basis of an evaluation of the foreign 
availability of the item. Eligibility is specific to the items and the 
countries to which they are found to be available.
    (b) BXA will initiate an eligibility evaluation:
    (1) On its own initiative;
    (2) On receipt of a FAS; or
    (3) On receipt of a TAC certification.
    (c) Upon initiation of an eligibility evaluation following receipt 
of either a FAS or TAC certification, the BXA will notify the claimant 
or TAC of the receipt and initiation of an evaluation and publish a 
Federal Register notice of the initiation of the evaluation.
    (d) The criteria for determining eligibility for expedited 
licensing procedures are:
    (1) The item must be available-in-fact to the specified non-
controlled country from a foreign source;
    (2) The item must be of a quality similar to that of the U.S.-
controlled item; and
    (3) The item must be available-in-fact to the specified non-
controlled country without effective restrictions.
    (e) Within 30 days of initiation of the evaluation, the Secretary 
of Commerce makes a determination of foreign availability on the basis 
of the BXA evaluation and recommendation which takes into account the 
evidence the Secretaries of Defense, State, and other interested 
agencies provided to BXA and any other information that the Secretary 
considers relevant. The Secretary of Commerce will provide all 
interested agencies an opportunity to review and comment on the 
evaluation.
    (f) Within 30 days of the receipt of the FAS or TAC certification, 
BXA will publish the Secretary's determination in the Federal Register, 
that the item will not be eligible for expedited licensing procedures 
to the stated countries and, where appropriate, amend Supplement No. 2 
to part 768.
    (g) Following completion of a self-initiated evaluation, BXA will 
be notified of the Secretary's determination and, where appropriate, 
Supplement No. 2 to part 768 will be amended.
    (h) Foreign availability submissions and TAC certifications to 
initiate an expedited licensing procedure evaluation must be clearly 
designated on their face as a request for expedited licensing procedure 
and must specify the items, quantities and countries alleged eligible. 
They should be sent to: Department of Commerce, Bureau of Export 
Administration, 14th Street and [[Page 25410]] Pennsylvania Avenue, NW, 
Room 3877, Washington, DC 20230.


Sec. 768.9  Appeals of negative foreign availability determinations.

    Appeals of negative determinations will be conducted according to 
the standards and procedures set forth in 15 CFR part 789. A 
Presidential decision (NSO) to deny a license or continue controls 
notwithstanding a determination of foreign availability shall not be 
subject to appeal.


Sec. 768.10  Removal of controls on less sophisticated items.

    Where the Secretary has removed national security controls on an 
item for foreign availability reasons, the Secretary will also remove 
controls on similar items that are controlled for national security 
reasons and whose functions, technological approach, performance 
thresholds, and other attributes that form the basis for national 
security export controls do not exceed the technical parameters of the 
item that Department of Commerce has decontrolled for foreign 
availability reasons.

Supplement No. 1 to Part 768--Evidence of Foreign Availability

    Below is a list of examples of evidence that the Bureau of Export 
Administration (BXA) has found useful in conducting assessments of 
foreign availability. A claimant submitting evidence supporting a claim 
of foreign availability should review this list for suggestions as 
evidence is collected. Acceptable evidence indicating possible foreign 
availability is not limited to these examples, nor is any one of these 
examples, usually, in and of itself, necessarily sufficient to meet a 
foreign availability criterion. A combination of several types of 
evidence for each criterion usually is required. A FAS should include 
as much evidence as possible on all four of the criteria listed below. 
BXA combines the submitted evidence with the evidence that it collects 
from other sources. BXA evaluates all evidence, taking into account 
factors that may include, but are not limited to: information 
concerning the source of the evidence, corroborative or contradictory 
indications, and experience concerning the reliability of 
reasonableness of such evidence. BXA will assess all relevant evidence 
to determine whether each of the four criteria has been met. Where 
possible, all information should be in writing. If information is based 
on third party documentation, the submitter should provide such 
documentation to BXA. If information is based on oral statements a 
third party made, the submitter should provide a memorandum of the 
conversation to BXA if the submitter cannot obtain a written memorandum 
from the source. BXA will amend this informational list as it 
identifies new examples of evidence.
    (a) Examples of evidence of Foreign Availability: The following are 
intended as examples of evidence that BXA will consider in evaluating 
foreign availability. BXA will evaluate all evidence according to the 
provisions in Sec. 768.7(c) of this part in order for it to be used in 
support of a foreign availability determination. This list is 
illustrative only.
    (1) Available-in-fact:
    (i) Evidence of marketing of an item in a foreign country (e.g., an 
advertisement in the media of the foreign country that the item is for 
sale there);
    (ii) Copies of sales receipts demonstrating sales to foreign 
countries;
    (iii) The terms of a contract under which the item has been or is 
being sold to a foreign country;
    (iv) Information, preferably in writing, from an appropriate 
foreign government official that the government will not deny the sale 
of an item it produces to another country in accordance with its laws 
and regulations;
    (v) Information, preferably in writing, from a named company 
official that the company legally can and would sell an item it 
produces to a foreign country;
    (vi) Evidence of actual shipments of the item to foreign countries 
(e.g., shipping documents, photographs, news reports);
    (vii) An eyewitness report of such an item in operation in a 
foreign country, providing as much information as available, including 
where possible the make and model of the item and its observed 
operating characteristics;
    (viii) Evidence of the presence of sales personnel or technical 
service personnel in a foreign country;
    (ix) Evidence of production within a foreign country;
    (x) Evidence of the item being exhibited at a trade fair in a 
foreign country, particularly for the purpose of inducing sales of the 
item to the foreign country;
    (xi) A copy of the export control laws or regulation of the source 
country which shows that the item is not controlled; or
    (xii) A catalog or brochure indicating the item is for sale in a 
specific country.
    (2) Foreign (non-U.S.) source:
    (i) Names of foreign manufacturers of the item including, and if 
possible, addresses and telephone numbers;
    (ii) A report from a reputable source of information on commercial 
relationships that a foreign manufacturer is not linked financially or 
administratively with a U.S. company;
    (iii) A list of the components in the U.S. item and foreign item 
indicating model numbers and their sources;
    (iv) A schematic of the foreign item identifying its components and 
their sources;
    (v) Evidence that the item is a direct product of foreign 
technology (e.g., a patent law suit lost by a U.S. producer, a foreign 
patent);
    (vi) Evidence of indigenous technology, production facilities, and 
the capabilities at those facilities; or
    (vii) Evidence that the parts and components of the item are of 
foreign origin or are exempt from U.S. licensing requirements by the 
parts and components provision Sec. 732.4 of this subchapter.
    (3) Sufficient quantity:
    (i) Evidence that foreign sources have the item in serial 
production;
    (ii) Evidence that the item or its products is used in civilian 
applications in foreign countries;
    (iii) Evidence that a foreign country is marketing in the specific 
country an item of its indigenous manufacture;
    (iv) Evidence of foreign inventories of the item;
    (v) Evidence of excess capacity in a foreign country's production 
facility;
    (vi) Evidence that foreign countries have not targeted the item or 
are not seeking to purchase it in the West;
    (vii) An estimate by a knowledgeable source of the foreign 
country's needs; or
    (viii) An authoritative analysis of the worldwide market (i.e., 
demand, production rate for the item for various manufacturers, plant 
capacities, installed tooling monthly production rates, orders, sales 
and cumulative sales over 5-6 years).
    (4) Comparable quality:
    (i) A sample of the foreign item;
    (ii) Operation or maintenance manuals of the U.S. and foreign 
items;
    (iii) Records or a statement from a user of the foreign item;
    (iv) A comparative evaluation, preferably in writing, of the 
U.S.and foreign items by, for example, a western producer or purchaser 
of the item, a recognized expert, a reputable trade publication, or 
independent laboratory;
    (v) A comparative list identifying, by manufacturers and model 
numbers, the key performance components and the materials used in the 
item that qualitatively affect the performance of the U.S. and foreign 
items;
    (vi) Evidence of the interchangeability of U.S. and foreign items; 
[[Page 25411]] 
    (vii) Patent descriptions for the U.S. and foreign items;
    (viii) Evidence that the U.S. and foreign items meet a published 
industry, national, or international standard;
    (ix) A report or eyewitness account, by deposition or otherwise, of 
the foreign item's operation;
    (x) Evidence concerning the foreign manufacturers' corporate 
reputation;
    (xi) Comparison of the U.S. and foreign end item(s) made from a 
specific commodity tool(s), technical data or device; or
    (xii) Evidence of the reputation of the foreign item including, if 
possible, information on maintenance, repair, performance, and other 
pertinent factors.

Supplement No. 2 to Part 768--Items Eligible for Expedited 
Licensing Procedures--[Reserved]

PART 770--INTERPRETATIONS

Sec.
770.1  Introduction.
770.2  Commodity interpretations.
770.3  Interpretations related to exports of technology and software 
to destinations in Country Group D:1.

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.


Sec. 770.1  Introduction.

    This part provides commodity, technology, and software 
interpretations. These interpretations clarify the scope of controls 
where such scope is not readily apparent from the Commerce Control List 
(CCL) (see Supplement No. 1 to part 774 of this subchapter) and other 
provisions of the Export Administration Regulations.


Sec. 770.2  Commodity interpretations.

    (a) Interpretation 1: Anti-friction bearing or bearing systems and 
specially designed parts. (1) Anti-friction bearings or bearing systems 
shipped as spares or replacements are classified under Export Control 
Classification Numbers (ECCNs) 2A01, 2A02, 2A03, 2A04, 2A05, 2A06 and 
2A96 (ball, roller, or needle-roller bearings and parts). This applies 
to separate shipments of anti-friction bearings or bearing systems and 
anti-friction bearings or bearing systems shipped with machinery or 
equipment for which they are intended to be used as spares or 
replacement parts.
    (2) An anti-friction bearing or bearing system physically 
incorporated in a segment of a machine or in a complete machine prior 
to shipment loses its identity as a bearing. In this scenario, the 
machine or segment of machinery containing the bearing is the item 
subject to export control requirements.
    (3) An anti-friction bearing or bearing system not incorporated in 
a segment of a machine prior to shipment, but shipped as a component of 
a complete unassembled (knocked-down) machine, is considered a 
component of a machine. In this scenario, the complete machine is the 
item subject to export license requirements.
    (b) Interpretation 2: Classification of ``parts'' of machinery, 
equipment, or other items--(1) An assembled machine or unit of 
equipment is being exported. In instances where one or more assembled 
machines or units of equipment are being exported, the individual 
component parts that are physically incorporated into the machine or 
equipment do not require a license. The license or general exception 
under which the complete machine or unit of equipment is exported will 
also cover its component parts, provided that the parts are normal and 
usual components of the machine or equipment being exported, or that 
the physical incorporation is not used as a device to evade the 
requirement for a license.
    (2) Parts are exported as spares, replacements, for resale, or for 
stock. In instances where parts are exported as spares, replacements, 
for resale, or for stock, a license is required only if the appropriate 
entry for the part specifies that a license is required for the 
intended destination.
    (c) Interpretation 3: Wire or cable cut to length.
    (1) Wire or cable may be included as a component of a system or 
piece of equipment, whether or not the wire or cable is cut to length 
and whether or not it is fitted with connectors at one or both ends, so 
long as it is in normal quantity necessary to make the original 
installation of the equipment and is necessary to its operation.
    (2) Wire or cable exported as replacement or spares, or for further 
manufacture is controlled under the applicable wire or cable ECCN only. 
This includes wire or cable, whether or not cut to length or fitted 
with connectors at one or both ends.
    (d) Interpretation 4: Telecommunications equipment and systems. 
Control equipment for paging systems (broadcast radio or selectively 
signalled receiving systems) is defined as circuit switching equipment 
in Category 5 of the CCL.
    (e) Interpretation 5: Numerical control systems. (1) Classification 
of ``Numerical Control'' Units. ``Numerical control'' units for machine 
tools, regardless of their configurations or architectures, are 
controlled by their functional characteristics as described in ECCN 
2B01.a. ``Numerical control'' units include computers with add-on 
``motion control boards''. A computer with add-on ``motion control 
boards'' for machine tools may be controlled under ECCN 2B01.a even 
when the computer alone without ``motion control boards'' is not 
subject to licensing requirements under Category 4 and the ``motion 
control boards'' are not controlled under ECCN 2B01.b.
    (2) Export documentation requirement. (i) When preparing a license 
application for a numerical control system, the machine tool and the 
control unit are classified separately. If either the machine tool or 
the control unit requires a license, then the entire unit requires a 
license. If either a machine tool or a control unit is exported 
separately from the system, the exported component is classified on the 
license application without regard to the other parts of a possible 
system.
    (ii) When preparing the Shipper's Export Declaration (SED), a 
system being shipped complete (i.e., machine and control unit), should 
be reported under the Schedule B number for each machine. When either a 
control unit or a machine is shipped separately, it should be reported 
under the Schedule B number appropriate for the individual item being 
exported.
    (f) Interpretation 6: Parts, accessories, and equipment exported as 
scrap. Parts, accessories, or equipment that are being shipped as scrap 
should be described on the SED in sufficient detail to be identified 
under the proper ECCN. When commodities declared as parts, accessories, 
or equipment are shipped in bulk, or are otherwise not packaged, 
packed, or sorted in accordance with normal trade practices, the 
Customs Officer may require evidence that the shipment is not scrap. 
Such evidence may include, but is not limited to, bills of sale, orders 
and correspondence indicating whether the commodities are scrap or are 
being exported for use as parts, accessories, or equipment.
    (g) Interpretation 7: Scrap arms, ammunition, and implements of 
war.
    Arms, ammunition, and implements of war, as defined in the U.S. 
Munitions List, and are under the jurisdiction of the U.S. Department 
of State (22 CFR parts 120 through 130), except for the following, 
which are under the jurisdiction of the Department of Commerce:
    (1) Cartridge and shell cases that have been rendered useless 
beyond the possibility of restoration to their original identity by 
means of excessive heating, [[Page 25412]] flame treatment, mangling, 
crushing, cutting, or by any other method are ``scrap''.
    (2) Cartridge and shell cases that have been sold by the armed 
services as ``scrap'', whether or not they have been heated, flame-
treated, mangled, crushed, cut, or reduced to scrap by any other 
method.
    (3) Other commodities that may have been on the U.S. Munitions List 
are ``scrap'', and therefore under the jurisdiction of the Department 
of Commerce, if they have been rendered useless beyond the possibility 
of restoration to their original identity only by means of mangling, 
crushing, or cutting. When in doubt as to whether a commodity covered 
by the Munitions List has been rendered useless, exporters should 
consult the Office of Defense Trade Controls, U.S. Department of State, 
Washington, D.C. 20520, or the Exporter Counseling Division, Office of 
Exporter Services, Room 1099A, U.S. Department of Commerce, Washington, 
D.C. 20230, before reporting a shipment as metal scrap.
    (h) Interpretation 8: Military automotive vehicles and parts for 
such vehicles--(1) Military automotive vehicles. (i) For purposes of 
U.S. export controls, military automotive vehicles ``possessing or 
built to current military specifications differing materially from 
normal commercial specifications'' may include, but are not limited to, 
the following characteristics:
    (A) Special fittings for mounting ordnance or military equipment;
    (B) Bullet-proof glass;
    (C) Armor plate;
    (D) Fungus preventive treatment;
    (E) Twenty-four volt electrical systems;
    (F) Shielded electrical system (electronic emission suppression); 
or
    (G) Puncture-proof or run-flat tires.
    (ii) Automotive vehicles fall into two categories.
    (A) Military automotive vehicles on the Munitions List, new and 
used. Automotive vehicles in this category are primarily combat 
(fighting) vehicles, with or without armor and/or armament, ``designed 
for specific fighting function.'' These automotive vehicles are 
licensed for export by the U.S. Department of State (22 CFR parts 120 
through 130).
    (B) Military automotive vehicles not on the U.S. Munitions List, 
new and used. Automotive vehicles in this category are primarily 
transport vehicles designed for non-combat military purposes 
(transporting cargo, personnel and/or equipment, and/or for to wing 
other vehicles and equipment over land and roads in close support of 
fighting vehicles and troops). These automotive vehicles are licensed 
for export by the U.S. Department of Commerce.
    (iii) Parts for military automotive vehicles. Functional parts are 
defined as those parts making up the power train of the vehicles, 
including the electrical system, the cooling system, the fuel system, 
and the control system (brake and steering mechanism), the front and 
rear axle assemblies including the wheels, the chassis frame, springs 
and shock absorbers. Parts specifically designed for military 
automotive vehicles on the Munitions List are licensed for export by 
the U.S. Department of State (22 CFR parts 120 through 130).
    (iv) General instructions. Manufacturers of non-Munitions List 
automotive vehicles and/or parts will know whether their products meet 
the conditions described in this paragraph (h). Merchant exporters and 
other parties who are not sure whether their products (automotive 
vehicles and/or parts) meet these conditions should check with their 
suppliers for the required information before making a shipment under 
general exception or submitting an application to BXA for a license.
    (i) Interpretation 9: Aircraft, parts, accessories and components. 
Aircraft, parts, accessories, and components defined in Categories VIII 
and IX of the Munitions List are under the export licensing authority 
of the U.S. Department of State (22 CFR parts 120 through 130). All 
other aircraft, and parts, accessories and components therefor, are 
under the export licensing authority of the U.S. Department of 
Commerce. The following aircraft, parts, accessories and components are 
under the licensing authority of the U.S. Department of Commerce:
    (1) Any aircraft (except an aircraft that has been demilitarized, 
but including aircraft specified in paragraph (i)(2) of this section) 
that conforms to a Federal Aviation Agency type certificate in the 
normal, utility, acrobatic, transport, or restricted category, provided 
such aircraft has not been equipped with or modified to include 
military equipment, such as gun mounts, turrets, rocket launchers, or 
similar equipment designed for military combat or military training 
purposes.
    (2) Only the following military aircraft, demilitarized (aircraft 
not specifically equipped, reequipped, or modified for military 
operations):
    (i) Cargo, bearing designations ``C-45 through C-118 inclusive,'' 
and ``C-121'';
    (ii) Trainers, bearing a ``T'' designation and using piston 
engines;
    (iii) Utility, bearing a ``U'' designation and using piston 
engines;
    (iv) Liaison, bearing an ``L'' designation; and
    (v) Observation, bearing an ``O'' designation and using piston 
engines.
    (3) All reciprocating engines.
    (4) Other aircraft engines not specifically designed or modified 
for military aircraft.
    (5) Parts, accessories, and components (including propellers), 
designed exclusively for aircraft and engines described in paragraphs 
(i)(1), (i)(2), (i)(3), and (i)(4) of this section.
    (6) General purpose parts, accessories, and components usable 
interchangeably on either military or civil aircraft.
    (j) Interpretation 10: Civil aircraft inertial navigation 
equipment.
    (1) The Department of Commerce has licensing jurisdiction over 
exports and reexports to all destinations of inertial navigation 
systems, inertial navigation equipment, and specially designed 
components therefor for ``civil aircraft''.
    (2) The Department of State, retains jurisdiction over all software 
and technology for inertial navigation systems and navigation 
equipment, and specially designed components therefor, for shipborne 
use, underwater use, ground vehicle use, spaceborne use or use other 
than ``civil aircraft''.
    (k) Interpretation 11: Precursor chemicals. The following chemicals 
are controlled by ECCN 1C60C. The appropriate Chemical Abstract Service 
Registry (C.A.S.) number and synonyms, (i.e., alternative names) are 
included to help you determine whether your chemicals are controlled by 
this entry. These chemicals require a license to all countries except 
Argentina, Australia, Austria, Belgium, Canada, Denmark, Czech 
Republic, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, 
Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
(1) (C.A.S. #1341-49-7) Ammonium hydrogen bifluoride
Acid ammonium fluoride
Ammonium bifluoride
Ammonium difluoride
Ammonium hydrofluoride
Ammonium hydrogen fibluoride
Ammonium hydrogen difluoride
Ammonium monohydrogen difluoride
(2) (C.A.S. #7784-34-1) Arsenic trichloride
Arsenic (III) chloride
Arsenous chloride
Fuming liquid arsenic
Trichloroarsine [[Page 25413]] 
(3) (C.A.S. #76-93-7) Benzilic acid
.alpha.,.alpha.-Diphenyl-.alpha.-hydroxyacetic acid
Diphenylgloycolic acid
.alpha.,.alpha.-Diphenylglycolic acid
Diphenylhydroxyacetic acid
.alpha.-Hydroxy-2,2-diphenylacetic acid
2-Hydroxy-2,2-diphenylacetic acid
.alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid
Hydroxydiphenylacetic acid
(4) (C.A.S. #107-07-3) 2-Chloroethanol
2-Chloro-1-ethanol
Chloroethanol
2-Chloroethyl alcohol
Ethene chlorohydrin
Ethylchlorohydrin
Ethylene chlorhydrin
Ethylene chlorohydrin
Glycol chlorohydrin
Glycol monochlorohydrin
2-Hydroxyethyl chloride
(5) (C.A.S. #78-38-6) Diethyl ethylphosphonate
Ethylphosphonic acid diethyl ester
(6) (C.A.S. #15715-41-0) Diethyl methylphosphonite
Diethoxymethylphosphine
Diethyl methanephosphonite
O,O-Diethyl methylphosphonite
Methyldiethoxyphosphine
Methylphosphonous acid diethyl ester
(7) (C.A.S. #2404-03-7) Diethyl-N, N-dimethylphosphoro- amidate
N,N-Dimethyl-O,O'-diethyl phosphoramidate
Diethyl dimethylphosphoramidate
Dimethylphosphoramidic acid diethyl ester
(8) (C.A.S. #762-04-9) Diethyl phosphite
Diethoxyphosphine oxide
Diethyl acid phosphite
Diethyl hydrogen phosphite
Diethyo phosphonate
Hydrogen diethyl phosphite
(9) (C.A.S. #100-37-8) N, N-Diethylethanolamine
N,N-Diethyl-2-aminoethanol
Diethyl (2-hydroxyethyl) amine
N,N-DIethyl-N-(.beta.-hydroxyethyl) amine
N,N-Diethyl-2-hydroxyethylamine
Diethylaminoethanol
2-(Diethylamino) ethanol
2-(Diethylamino)ethyl alcohol
N,N-Diethylmonoethanolamine
(2-Hydroxyethyl) diethylamine
2-Hydroxytriethylamine
(10) (C.A.S. #5842-07-9) N,N-Diisopropyl-.beta.-aminoethane thiol
2-(Diisopropylamino) ethanethiol
Diisopropylaminoethanethiol
.beta.-Diisopropylaminoethanethiol
2-(bis(1-Methylethyl)amino) ethanethiol
(11) (C.A.S. #4261-68-1) N, N-Diisopropyl-.2-aminoethyl chloride 
hydrochloride
(12) (C.A.S. #96-80-0) N,N-Diisopropyl-.beta.-aminoethanol
N,N-Diisopropyl-2-aminoethanol
2-(Diisopropylamino) ethanol
(N,N-Diisopropylamino) ethanol
2-(Diisopropylamino) ethyl alcohol
N,N-Diisopropylethanolamine
(13) (C.A.S. #96-79-7) N,N-Diisopropyl-.beta.-aminoethyl chloride
2-Chloro-N,N-diisoproplethanamine
1-Chloro-N,N-diisopropylaminoethane
2-Chloro-N,N-diisopropylethylamine
N-(2-chloroethyl)-N-(1-methylethyl)-2-propanamine
N-(2-Chloroethyl) diisopropylamine
N,N-Diisopropyl-2-chloroethylamine
1-(Diisopropylamino)-2-cholorethane
2-(Diisopropylamino)ethyl chloride
Diisopropylaminoethyl chloride
.beta.-Diisopropylaminoethyl chloride
(14) (C.A.S. #108-18-9) Diisopropylamine
N,N-Diisopropylamine
N-(1-Methylethyl)-2-propanamine
(15) (C.A.S. #6163-75-3) Dimethyl ethylphosphonate
Dimethyl ethanephosphonate
Ethylphosphonic acid dimethyl ester
(16) (C.A.S. #756-79-6) Dimethyl methylphosphonate
Dimethoxymethyl phosphine oxide
Dimethyl methanephosphonate
Methanephosphonic acid dimethyl ester
Methylphosphonic acid dimethyl ester
(17) (C.A.S. #868-85-9) Dimethyl phosphite
Dimethoxyphosphine oxide
Dimethyl acid phosphite
Dimethyl hydrogen phosphite
Dimethyl phosphonate
Hydrogen dimethyl phosphite
Methyl phosphate
(18) (C.A.S. #124-40-3) Dimethylamine
N-Methyl methanamine
(19) (C.A.S. #506-59-2) Dimethylamine hydrochloride
Dimethylammonium chloride
N-Methyl methanamine hydrochloride
(20) (C.A.S. #57856-11-8) O-Ethyl-2-diisoprophylaminoethyl 
methylphosphonite (QL)
Methylphosphonous acid 2-(bis(1-methylethyl)amino)ethyl ethyl ester
(21) (C.A.S. #1498-40-4) Ethylphosphonous dichloride
Dichloroethylphosphine
Ethyl phosphonous dichloride
Ethyldichlorophosphine
(22) (C.A.S. #430-78-4) Ethylphosphonus difluoride
Ethyldifluorophosphine
(23) (C.A.S. #1066-50-8) Ethylphosphonyl dichloride
Dichloroethylphosphine oxide
Ethanephosphonyl chloride
Ethylphosphinic dichloride
Ethylphosphonic acid dichloride
Ethylphosphonic dichloride
(24) (C.A.S. #753-98-0) Ethylphosphonyl difluoride
Ethyl difluorophosphite
Ethyldifluorophosphine oxide
Ethylphosphonic difluoride
(25) (C.A.S. #7664-39-3) Hydrogen fluoride
Anhydrous hydrofluoric acid
Fluorhydric acid
Fluorine monohydride
Hydrofluoric acid gas
(26) (C.A.S. #3554-74-3) 3-Hydroxyl-1-methylpiperidine
3-Hydroxy-N-methylpiperidine
1-Methyl-3-hydroxypiperidine
N-Methyl-3-hydroxypiperidine
1-Methyl-3-piperidinol
N-Methyl-3-piperidonol
(27) (C.A.S. #76-89-1) Methyl benzilate
Benzilic acid methyl ester
.alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid methyl ester
Methyl .alpha.-phenylmandelate
Methyl diphenylglycolate
(28) (C.A.S. #676-83-5) Methylphosphonous dichloride
Dichloromethylphosphine
Methyldichlorophosphine
Methylphosphorus dichloride
(29) (C.A.S. #753-59-3) Methylphosphonous diflouride
Difluoromethylphosphine
Methyldifluorophosphine
(30) (C.A.S. #676-97-1) Methylphosphonyl dichloride
Dichloromethylphosphine oxide
Methanephosphonodichloridic acid
Methanephosphonyl chloride
Methylphosphonic acid dichloride
Methylphosphonic dichloride
Methylphosphonodichloridic acid
Methylphosphonyl chloride
(31) (C.A.S. #676-99-3) Methylphosphonyl difluoride
Difluoromethylphosphine oxide
Methyl difluorophosphite
Methylphosphonic difluoride [[Page 25414]] 
(32) (C.A.S. #10025-87-3) Phosphorus oxychloride
Phosphonyl trichloride
Phosphoric chloride
Phosphoric trichloride
Phosphoroxychloride
Phosphoroxytrichloride
Phosphorus chloride oxide
Phosphorus monoxide trichloride
Phosphorus oxide trichloride
Phosphorus oxytrichloride
Phosphorus trichloride oxide
Phosphoryl trichloride
Trichlorophosphine oxide
Trichlorophosphorus oxide
(33) (C.A.S. #10026-13-8) Phosphorus pentachloride
Pentachlorophosphorane

entachlorophosphorus
Phosphoric chloride
Phosphorus (V) chloride
Phosphorus perchloride
(34) (C.A.S. #1314-80-3) Phosphorus pentasulfide
Diphosphorus pentasulfide
Phosphoric sulfide
Phosphorus persulfide
Phosphorus sulfide
(35) (C.A.S. #7719-12-2) Phosphorus trichloride
Phosphorus chloride
Trichlorophosphine
(36) C.A.S. #75-97-8) Pinacolone
tert-Butyl methyl ketone
2,2-Dimethyl-3-butanone
3,3-Dimethyl-2-butanone
2,2-Dimethylbutanone
3,3-Dimethylbutanone
1,1-Dimethylethyl methyl ketone
Methyl tert-butyl ketone
Pinacolin
Pinacoline
1,1,1-Trimethylacetone
(37) (C.A.S. #464-07-3) Pinacolyl alcohol
tert-Butyl methyl carbinol
2,2-Dimethyl-3-butanol
3,3-Dimethyl-2-butanol
1-Methyl-2,2-dimethylpropanol
(38) (C.A.S. #151-50-8) Potassium cyanide
(39) (C.A.S. #7789-23-3) Potassium fluoride
Potassium monofluoride
(40) (C.A.S. #7789-29-9) Potassium hydrogen fluoride
Hydrogen potassium difluoride
Hydrogen potassium fluoride
Potassium acid fluoride
Potassium bifluoride
Potassium hydrogen difluoride
Potassium monohydrogen difluoride
(41) (C.A.S. #1619-34-7) 3-Quinuclidinol
1-Azabicyclo(2.2.2)octan-3-ol
3-Hydroxyquinuclidine
(42) (C.A.S. #3731-38-2) 3-Quinuclidinone
1-Azabicyclo(2.2.2)octan-3-one
3-Oxyquinuclidine
Quinuclidone
(43) (C.A.S. #1333-83-1) Sodium bifluoride
Sodium hydrogen difluoride
Sodium hydrogen fluoride
(44) (C.A.S. #143-33-9) Sodium cyanide
(45) (C.A.S. #7681-49-4) Sodium fluoride
Sodium monofluoride
(46) (C.A.S. #1313-82-2) Sodium sulfide
Disodium monosulfide
Disodium sulfide
Sodium monosulfide
Sodium sulphide
(47) (C.A.S. #10025-67-9) Sulfur Monochloride
(48) (C.A.S. #10545-99-0) Sulfur dicholoride
(49) (C.A.S. #111-48-8) Thiodiglycol
Bis(2-hydroxyethyl) sulfide
Bis(2-hydroxyethyl) thioether
Di(2-hydroxyethyl) sulfide
Diethanol sulfide
2,2'-Dithiobis-(ethanol)
3-Thiapentane-1,5-diol
2,2'-Thiobisethanol
2,2'-Thiodiethanol
Thiodiethylene glycol
2,2'-Thiodiglycol
(50) C.A.S. #7719-09-7) Thionyl chloride
Sulfinyl chloride
Sulfinyl dichloride
Sulfur chloride oxide
Sulfur oxychloride
Sulfurous dichloride
Sulfurous oxychloride
Thionyl dichloride
(51) (C.A.S. #102-71-6) Triethanolamine
Alkanolamine 244
Nitrilotriethanol
2,2',2''-Nitrilotriethanol
2,2',2''-Nitrilotris(ethanol)
TEA
TEA(amino alcohol)
Tri(2-hydroxyethyl)amine
Triethanolamin
Tris(.beta.-hydroxyethyl)amine
Tris(2-hydroxyethyl)amine
Trolamine
(52) (C.A.S. #637-39-8) Triethanolamine hydrochloride
(53) (C.A.S. #122-52-1) Triethyl phosphite
Phosphorous acid triethyl ester
Triethoxyphosphine
Tris(ethoxy)phosphine
(54) (C.A.S. #121-45-9) Trimethyl phosphite
Phosphorus acid trimethyl ester
Trimethoxyphosphine


Sec. 770.3  Interpretations related to exports of technology and 
software to destinations in Country Group D:1.

    (a) Introduction. This section is intended to provide you 
additional guidance on how to determine whether your technology or 
software would be eligible for a License Exception, or require a 
license, for export to Country Group D:1.
    (b) Scope of licenses. The export of technology and software under 
a license is authorized only to the extent specifically indicated on 
the face of the license. The only technology and software related to 
equipment exports that may be exported without a license is technology 
described in Sec. 732.7 of this subchapter, and installation, 
operation, maintenance, and repair technology and software eligible for 
License Exception 14 described in Sec. 740.16 of this subchapter.
    (c) Commingled technology and software. (1) U.S.-origin technology 
does not lose its U.S.-origin when it is redrawn, used, consulted, or 
otherwise commingled abroad in any respect with other technology of any 
other origin. Therefore, any subsequent or similar technical data 
prepared or engineered abroad for the design, construction, operation, 
or maintenance of any plant or equipment, or part thereof, which is 
based on or utilizes any U.S.-origin technology, is subject to the EAR 
is the same manner as the original U.S.-origin technology, including 
license requirements, unless the commingled technology is not subject 
to the EAR by reason of the de minimis exclusions described at 
Sec. 732.4 of this subchapter.
    (2) U.S.-origin software that is incorporated into or commingled 
with foreign-origin software does not lose its U.S.-origin. Such 
commingled software is subject to the EAR is the same manner as the 
original U.S.-origin software, including license requirements, unless 
the commingled software is not subject to the EAR by reason of the de 
minimis exclusions described at Sec. 732.4 of this subchapter.
    (d) Certain License Exception. The following questions and answers 
are [[Page 25415]] intended to further clarify the scope of technology 
and software eligible for a License Exception.
    (1)(i) Question 1.
    (A) Our engineers, in installing or repairing equipment, use 
techniques (experience as well as proprietary knowledge of the internal 
componentry or specifications of the equipment) that exceed what is 
provided in the standard manuals or instructions (including training) 
given to the customer. In some cases, it is also a condition of the 
license that such information provided to the customer be constrained 
to the minimum necessary for normal installation, maintenance and 
operation situations.
    (B) Can we send an engineer (with knowledge and experience) to the 
customer site to perform the installation or repair, under the 
provisions of License Exception 14 (OTS) described in Sec. 740.16 of 
this subchapter, if it is understood that he is restricted by our 
normal business practices to performing the work without imparting the 
knowledge or technology to the customer personnel?
    (ii) Answer 1. Export of technology includes release of U.S.-origin 
data in a foreign country, and ``release'' includes ``application to 
situations abroad of personal knowledge or technical experience 
acquired in the United States.'' As the release of technology in the 
circumstances described here would exceed that permitted under License 
Exception 14 (OTS) for operating technology and software, a license 
would be required even though the technician could apply the data 
without disclosing it to the customer.
    (2)(i) Question 2. We plan, according to our normal business 
practices, to train customer engineers to maintain equipment that we 
have exported under a license or License Exception. The training is 
contractual in nature, provided for a fee, and is scheduled to take 
place in part in the customer's facility and in part in the U.S. Can we 
now proceed with this training at both locations under a License 
Exception?
    (ii) Answer 2. (A) Provided that this is your normal training, and 
involves technology contained in your manuals and standard instructions 
for the exported equipment, and meets the other requirements of License 
Exception 14 (OTS) for operating technology and software, the training 
may be provided within the limits of that License Exception. The 
location of the training is not significant, as the export occurs at 
the time and place of the actual transfer or imparting of the 
technology to the customer's engineers.
    (B) Any training beyond that covered under the provisions of 
License Exception 14 (OTS), but specifically represented in your 
license application as required for this customer installation, and in 
fact authorized on the face of the license or a separate technology 
license, may not be undertaken while the license is suspended or 
revoked.

PART 772--DEFINITIONS OF TERMS

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.

    The following are definitions of terms as used in the Export 
Administration Regulations:
    Advisory Committee on Export Policy (ACEP). The ACEP voting members 
include the Assistant Secretary of Commerce for Export Administration, 
and the Assistant Secretary-level representatives from the Departments 
of State, Defense, Energy, and the Arms Control and Disarmament Agency. 
The Director of the Joint Chiefs of Staff for International Negotiation 
and the Director of the Nonproliferation Center of the Central 
Intelligence Agency are non-voting members. The Assistant Secretary of 
Commerce for Export Administration is the Chair. No alternate ACEP 
members may be designated, but the appropriate acting assistant head of 
any agency or department may serve in lieu of the assistant head of the 
concerned agency or department. The ACEP may invite the assistant heads 
of other United States Government agencies or departments (other than 
those identified above) to participate in the activities of the ACEP 
when matters of interest to such agencies or departments are under 
consideration. Decisions are made by majority vote.
    Airline. Any person or firm engaged primarily in the transport of 
persons or property by aircraft for compensation or hire, pursuant to 
authorization by the U.S. Government or a foreign government.
    Applicant. That person who, as the principal party in interest in 
the transaction, has the power and responsibility for determining and 
controlling the sending of the item out of the country and is thus, in 
reality, the exporter. (For additional information see Sec. 748.4(b)(1) 
of this subchapter.)
    Australia Group. The members belonging to this group have agreed to 
adopt controls on dual-use chemicals, i.e., weapons precursors, and 
equipment, and biological microorganisms and related equipment in order 
to prevent the proliferation of chemical and biological weapons.
    Bill of lading. The contract of carriage and receipt for items, 
issued by the carrier. It includes an air waybill, but does not include 
an inland bill of lading or a domestic air waybill covering movement to 
port only.
    CCL Group. The Commerce Control List is divided into 10 categories. 
Each category is subdivided into the same five groups, designated by 
letters A through E. See Sec. 738.2(b) of this subchapter for a listing 
of these groups.
    CTP. See Composite Theoretical Performance.
    Canadian airline. Any citizen of Canada who is authorized by the 
Canadian Government to engage in business as an airline. For purposes 
of this definition, a Canadian citizen is:
    (1) A natural person who is a citizen of Canada; or
    (2) A partnership of which each member is such an individual; or
    (3) A Canadian firm incorporated or otherwise organized under the 
laws of Canada or any Canadian province, having a total foreign stock 
interest not greater than 40 percent and having the Chairman or Acting 
Chairman and at least two-thirds of the Directors thereof Canadian 
citizens.
    Category. The Commerce Control List is divided into 10 categories. 
A list of these categories can be found in Sec. 738.2(a) of this 
subchapter.
    COCOM (Coordinating Committee on Multilateral Export Controls). A 
multilateral organization that cooperated in restricting strategic 
exports to controlled countries. COCOM was officially disbanded on 
March 31, 1994. A successor regime is currently in the process of being 
created. COCOM members included the NATO countries, except Iceland, 
plus Japan and Australia.
    Commerce Control List (CCL). A list of items under the export 
control jurisdiction of the Bureau of Export Administration, U.S. 
Department of Commerce. Note that certain additional items described in 
part 732 of this subchapter are also subject to the EAR.
    Commodity. Any article, material, or supply except technology and 
software.
    Composite Theoretical Performance (CTP). A measure of computational 
performance given in millions of theoretical operations per second 
(MTOPS). The formula to calculate the CTP is contained in a technical 
note titled ``Information on How to Calculate ``Composite Theoretical 
Performance'' at the end of Category 4 of the CCL. [[Page 25416]] 
    Controlled country. Country Group D:1. (See Supplement No. 1 to 
part 740 of this subchapter.)
    Cooperating country. A country that cooperated with the former 
COCOM member countries in restricting strategic exports in accordance 
with COCOM standards. The ``Cooperating Countries'' are: Austria, 
Finland, Hong Kong, Ireland, Korea (Republic of), New Zealand, Sweden, 
and Switzerland.
    Countries supporting international terrorism. In accordance with 
section 6(j) of the Export Administration Act of 1979, as amended 
(EAA), the Secretary of State has determined that the following 
countries have repeatedly provided support for acts of international 
terrorism: Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    Country Chart. A chart, found in Supplement No. 1 to part 738 of 
this subchapter, that contains certain licensing requirements based on 
destination and Reason for Control. In combination with the CCL, the 
Country Chart indicates when a license is required for any item on the 
CCL to any country in the world under General Prohibition One (Exports 
and Reexports in the Form Received), General Prohibition Two (Parts and 
Components Reexports), and General Prohibition Three (Foreign Produced 
Direct Product Reexports).
    Country Groups. For export control purposes, foreign countries are 
separated into five country groups designated by the symbols A, B, C, 
D, and E. (See Supplement No. 1 to part 740 of this subchapter for a 
list of countries in each Country Group.)
    Customs officer. The Customs officers in the U.S. Customs Service 
and postmasters unless the context indicates otherwise.
    Defense Trade Control (DTC). The office at the Department of State, 
formerly known as the Office of Munitions Control, responsible for 
reviewing applications to export and reexport items on the U.S. 
Munitions List. (See 22 CFR parts 120 through 130.)
    Denied Persons List. A list, referenced in Supplement No. 2 to part 
764 of this subchapter, of specific persons or firms that have been 
denied export privileges, in whole or in part. The full text of each 
order denying export privileges is published in full in the Federal 
Register.
    Dual use. Items that have both military and commercial applications 
and items with purely commercial uses.
    Export Administration Review Board (EARB). The EARB was established 
by Executive Order No. 11533 of June 4, 1970. EARB voting members are 
the Secretary of Commerce, the Secretary of State, the Secretary of 
Defense, the Secretary of Energy, and the Director of the Arms Control 
and Disarmament Agency. The Chairman of the Joint Chiefs of Staff and 
the Director of Central Intelligence are non-voting members. The 
Secretary of Commerce is the Chair of the EARB. No alternate EARB 
members may be designated, but the acting head or deputy head of any 
agency or department may serve in lieu of the head of the concerned 
agency or department. The EARB may invite the heads of other United 
States Government agencies or departments (other than those identified 
above) to participate in the activities of the EARB when matters of 
interest to such agencies or departments are under consideration. 
Decisions are made by majority vote.
    Export. The term export means an actual shipment, transfer, or 
transmission of items out of the United States; a transfer of items in 
the United States to an embassy or affiliate of a controlled country; 
or a transfer to any person of items either within the United States or 
outside the United States with the knowledge or intent that the items 
will be shipped, transferred, or transmitted to an unauthorized 
recipient. (See Sec. 732.3(e) of this subchapter.)
    Export Administration Act (EAA). Export Administration Act of 1979, 
as amended, effective October 1, 1979.
    Export Administration Regulations (EAR). Regulations set forth in 
parts 730-774, inclusive, of Title 15 of the Code of Federal 
Regulations.
    Export Control Classification Number (ECCN). The numbers used in 
part 774 of this subchapter and throughout the EAR. The Export Control 
Classification Number consists of a set of digits and a letter. 
Reference Sec. 738.2(c) of this subchapter for a complete description 
of each ECCN's composition.
    Export control document. A license; application for license; any 
and all documents submitted in accordance with the requirements of the 
EAR in support of, or in relation to, a license application; 
application for International Import Certificate; International Import 
Certificate; Delivery Verification Certificate or similar evidence of 
delivery; Shipper's Export Declaration (SED) presented in connection 
with shipments to any country; a Dock Receipt or bill of lading issued 
by any carrier in connection with any export subject to the EAR and any 
and all documents prepared and submitted by exporters and agents 
pursuant to the export clearance requirements of part 758 of this 
subchapter; a U.S. exporter's report of request received for 
information, certification, or other action indicating a restrictive 
trade practice or boycott imposed by a foreign country against a 
country friendly to the United States, submitted to the U.S. Department 
of Commerce in accordance with the provisions of part 760 of this 
subchapter; Customs Form 7512, Transportation Entry and Manifest of 
Goods, Subject to Customs Inspection and Permit, when used for 
Transportation and Exportation (T.& E.) or Immediate Exportation 
(I.E.); and any other document issued by a U.S. Government agency as 
evidence of the existence of a license for the purpose of loading onto 
an exporting carrier or otherwise facilitating or effecting an export 
from the United States or any reexport of any item requiring a license.
    Export of satellites. The term export, as applied to satellites 
controlled by the Department of Commerce, includes the physical 
movement of a satellite from the United States to another country for 
any purpose, or the transfer of registration of a satellite or 
operational control over a satellite from a person resident in the 
United States to a person resident in another country. Under the 
Commercial Space Launch Act, a launch of a launch vehicle and payload 
is not an export for purposes of controlling export.
    Exporting carrier. Any instrumentality of water, land, or air 
transportation by which an export is effected, including any domestic 
air carrier on which any cargo for export is laden or carried.
    Firm. A corporation, partnership, limited partnership, association, 
company, trust, or any other kind of organization or body corporate, 
situated, residing, or doing business in the United States or any 
foreign country, including any government or agency thereof.
    Foreign policy control. A control imposed under the EAR for any and 
all of the following reasons: chemical and biological weapons, nuclear 
non-proliferation, missile technology, regional stability, crime 
control, anti-terrorism, United Nations sanctions, and any other reason 
for control implemented under section 6 of the EAA or other similar 
authority.
    Forwarding agent. The person authorized by an exporter to perform 
for that exporter actual services which facilitate the export of items. 
The forwarding agent need not be a person regularly engaged in the 
freight forwarding business. The forwarding agent must be designated by 
the exporter in writing in the power-of- [[Page 25417]] attorney set 
forth on the Shippers' Export Declaration or in a general power-of-
attorney, or other written form, subscribed and sworn to by a duly 
authorized officer or employee of the exporter.
    General prohibitions. The 10 prohibitions found in part 734 of this 
subchapter that prohibit certain exports, reexports, and other conduct, 
subject to the EAR.
    Hold Without Action (HWA). License applications may be held without 
action only in the limited circumstances described in Sec. 750.4(c) of 
this subchapter.
    Intent to Deny (ITD) letter. A letter informing: 1) the applicant 
of the reason for BXA's decision to deny a license application; and 2) 
that the application will be denied 45 days from the date of the ITD 
letter, unless the applicant provides, and BXA accepts, a reason why 
the application should not be denied for the stated reason.
    Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter, the purchaser, or the ultimate 
consignee, for the purpose of effecting delivery of the items to the 
ultimate consignee.
    Item. Any commodity, technology, or software.
    Law or regulation relating to export control. Any statute, 
proclamation, executive order, regulation, rule, license, or order 
applicable to any conduct involving an export transaction shall be 
deemed to be a ``law or regulation relating to export control.''
    License. Authority issued by the Bureau of Export Administration 
authorizing an export, reexport, or other regulated activity. The term 
``license'' does not include authority represented by a ``License 
Exception.''
    License alternatives. A license alternative is either the Special 
Comprehensive License described in part 752 of this subchapter, or a 
License Exception described in part 740 of this subchapter.
    License application; application for license. License application 
and similar wording mean an application to BXA requesting the issuance 
of a license to the applicant.
    License Exception. An authorization described in part 740 of this 
subchapter that allows you to export or reexport, under stated 
conditions, items subject to the EAR that otherwise would require a 
license. Unless otherwise indicated, these License Exceptions are not 
applicable to exports under the licensing jurisdiction of agencies 
other than the Department of Commerce.
    Licensee. The person to whom a license has been issued by BXA. See 
Sec. 750.7(c) of this subchapter for a complete definition and 
identification of a licensee's responsibilities.
    MTCR. See Missile Technology Control Regime.
    MTEC. See Missile Technology Export Control Group.
    Missile Technology Control Regime (MTCR). The United States along 
with other nations in this multilateral control regime have agreed to 
guidelines for restricting the export and reexport of dual-use items 
that may contribute to the development of missiles. The MTCR Annex 
lists missile-related equipment and technology controlled either by the 
Department of Commerce or by the Department of State's Office of 
Defense Trade Controls (22 CFR parts 120 through 130).
    Missile Technology Export Control Group (MTEC). Chaired by the 
Department of State, the MTEC primarily reviews applications involving 
items controlled for Missile Technology reasons. The MTEC also reviews 
applications involving items not controlled for Missile Technology 
reasons, but destined for a country and/or end use/end user of concern.
    ``N.E.S.''. N.E.S or n.e.s is an abbreviation meaning ``not 
elsewhere specified''.
    NLR. NLR (``no license required'') is a symbol entered on the 
Shipper's Export Declaration, certifying that the items exported are 
listed on the CCL and that no license is required.
    NOL. NOL (``not on list'') is a symbol entered on the Shipper's 
Export Declaration, certifying that items exported are not listed on 
the CCL, but still subject to the EAR, and that no license is required.
    NSG. See Nuclear Suppliers Group.
    NATO (North Atlantic Treaty Organization). A strategic defensive 
organization that consists of the following member nations: Belgium, 
Canada, Denmark, France, Germany, Greece, Iceland, Italy, Luxembourg, 
the Netherlands, Norway, Portugal, Spain, Turkey, the United Kingdom, 
and the United States.
    Net value. The actual selling price, less shipping charges or 
current market price, whichever is the larger, to the same type of 
purchaser in the United States.
    Nuclear Suppliers Group (NSG). The United States and other nations 
in this multilateral control regime have agreed to guidelines for 
restricting the export or reexport of dual-use items with nuclear 
applications.
    Office of Foreign Assets Control (FAC) or (OFAC). The agency at the 
Department of the Treasury responsible for blocking assets of 
sanctioned foreign entities, controlling participation by U.S. persons, 
including foreign subsidiaries, in transactions with specific countries 
or nationals of such countries, and administering embargoes on certain 
countries or areas of countries. (31 CFR parts 500 through 590.)
    Operating Committee (OC). The OC voting members include 
representatives of appropriate agencies in the Departments of Commerce, 
State, Defense, and Energy and the Arms Control and Disarmament Agency 
for Nonproliferation Policy. The Director of the Joint Chiefs of Staff 
for International Negotiations and the Director of the Nonproliferation 
Center of the Central Intelligence Agency are non-voting members. The 
Department of Commerce representative, appointed by the Secretary, is 
the Chair of the OC and serves as the Executive Secretary of the 
Advisory Committee on Export Policy. The OC may invite representatives 
of other United States Government agencies or departments (other than 
those identified above) to participate in the activities of the OC when 
matters of interest to such agencies or departments are under 
consideration.
    Person. A natural person, including a citizen or national of the 
United States or of any foreign country, or any firm.
    Port of export. The port where the cargo to be shipped abroad is 
laden aboard the exporting carrier. It includes, in the case of an 
export by mail, the place of mailing.
    Production facility. As defined by 10 CFR 110.2 of the Nuclear 
Regulatory Commission Regulations, production facility means any 
nuclear reactor or plant specially designed or used to produce special 
nuclear material through the irradiation of source material or special 
nuclear material, the separation of isotopes or the chemical 
reprocessing or irradiated source or special nuclear material.
    Publicly available information. Information that is generally 
accessible to the interested public in any form and, therefore, not 
subject to the EAR (See part 732 of this subchapter).
    Purchaser. The person abroad who has entered into a transaction 
with the applicant to purchase an item for delivery to the ultimate 
consignee. A bank, freight forwarder, forwarding agent, or other 
intermediary is not a purchaser.
    RWA. See Return without Action.
    Reasons for Control. There are 10 possible reasons why an item may 
be controlled. Items controlled within a particular ECCN may be 
controlled for [[Page 25418]] more than one reason. Reasons for Control 
are: Anti-Terrorism (AT), Chemical & Biological Weapons (CB), Crime 
Control (CC), Missile Technology (MT), National Security (NS), Nuclear 
Nonproliferation (NP), Regional Stability (RS), Supercomputers (SC), 
Short Supply (SS), and United Nations sanctions (UN).
    Reexport. The term ``reexport'' includes the transfer, 
transshipment, or diversion of items from one foreign country to 
another foreign country. In addition, for purposes of satellites 
controlled by the Department of Commerce, the term ``reexport'' also 
includes the transfer of registration of a satellite or operational 
control over a satellite from a party resident in one country to a 
party resident in another country.
    Replacement. An authorization by the Bureau of Export 
Administration revising the information, conditions, or riders stated 
on a license issued by BXA.
    Return Without Action (RWA). An application may be RWA'd for one of 
the following reasons: (1) the applicant has requested the application 
be returned, (2) if a License Exception applies, (3) the items are not 
under Department of Commerce jurisdiction, (4) required documentation 
has not been submitted with the application, or (5) the applicant can 
not be reached after several attempts to request additional information 
necessary for processing of the application.
    SNEC. See Subgroup on Nuclear Export Coordination.
    Schedule B numbers. The commodity numbers appearing in the current 
edition of the Bureau of the Census publication, Schedule B Statistical 
Classification of Domestic and Foreign Commodities Exported from the 
United States. (See part 758 of this subchapter for information on use 
of Schedule B numbers.)
    Shield. Chaired by the Department of State, the Shield primarily 
reviews applications involving items controlled for Chemical and 
Biological Weapons reasons. The Shield also reviews applications 
involving items not controlled for Chemical and Biological Weapons 
reasons, but destined for a country and/or end use/end-user of concern.
    Single shipment. All items moving at the same time from one 
exporter to one consignee or intermediate consignee on the same 
exporting carrier, even if these items will be forwarded to one or more 
ultimate consignees. Items being transported in this manner shall be 
treated as a single shipment even if the items represent more than one 
order or are in separate containers.
    Specially Designated National (SDN). Any person who is determined 
by the Secretary of the Treasury to be a specially designated national 
for any reason under regulations issued by the Office of Foreign Assets 
Control (see 31 CFR parts 500 through 590).
    Specially Designated Terrorist (STN). Any person who is determined 
by the Secretary of the Treasury to be a specially designated terrorist 
under notices or regulations issued by the Office of Foreign Assets 
Control (see 31 CFR chapter V).
    Subgroup on Nuclear Export Coordination (SNEC). Chaired by the 
Department of State, the SNEC primarily reviews applications involving 
items controlled for Nuclear Non-proliferation reasons. The SNEC also 
reviews applications involving items not controlled for Nuclear Non-
proliferation reasons, but destined for a country and/or end use/end-
user of concern.
    Subject to the EAR. A term used in the EAR to describe those 
commodities, technology, software and activities over which the Bureau 
of Export Administration (BXA) exercises regulatory jurisdiction under 
the EAR (See Sec. 732.2(a) of this subchapter for a complete 
definition).
    Supercomputer. A ``supercomputer'' is any computer with a Composite 
Theoretical Performance (CTP) equal to or exceeding 1,500 Mtops 
(million theoretical operations per second). The formula to calculate 
the CTP is contained in a technical note titled ``Information on How to 
Calculate ``Composite Theoretical Performance'' at the end of Category 
4 of the CCL.
    U.S. exporter. That person who, as the principal party in interest 
in the export transaction, has the power and responsibility for 
determining and controlling the sending of the items out of the United 
States.
    Ultimate consignee. The person located abroad who is the true party 
in interest in actually receiving the export or reexport for the 
designated end-use. (See Sec. 748.4(b)(5) of this subchapter.)
    United States. Unless otherwise stated, the 50 States, including 
offshore areas within their jurisdiction pursuant to section 3 of the 
Submerged Lands Act (43 U.S.C. 1311), the District of Columbia, Puerto 
Rico, and all territories, dependencies, and possessions of the United 
States, including foreign trade zones established pursuant to 19 U.S.C. 
81A-81U, and also including the outer continental shelf, as defined in 
section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1331(a)).
    United States airline. Any citizen of the United States who is 
authorized by the U.S. Government to engage in business as an airline. 
For purposes of this definition, a U.S. citizen is:
    (1) An individual who is a citizen of the United States or one of 
its possessions; or
    (2) A partnership of which each member is such an individual; or
    (3) A corporation or association created or organized under the 
laws of the United States, or of any State, Territory, or possession of 
the United States, of which the president and two-thirds of the board 
of directors and other managing officers thereof are such individuals 
and in which at least 75 percent of the voting interest is owned or 
controlled by persons who are citizens of the United States or of one 
of its possessions.
    Utilization facility. As defined by 10 CFR 110.2 of the Nuclear 
Regulatory Commission Regulations, utilization facility means a nuclear 
reactor, other than one that is a production facility, any of the 
following major components of a nuclear reactor: Pressure vessels 
designed to contain the core of a nuclear reactor, other than one that 
is a production facility, and the following major components of a 
nuclear reactor: (1) Primary coolant pumps; (2) Fuel charging or 
discharging machines; and (3) Control rods. Utilization facility does 
not include the steam turbine generator portion of a nuclear power 
plant.
    You. Any person, including a natural person or a firm.

 PARTS 771, 773, 775-779, 785-791--[REMOVED AND RESERVED]

    5. Parts 771, 773, 775 through 779 and 785 through 791 are removed 
and reserved.

PART 799--[REDESIGNATED AS PART 774]

    6. Part 799 is redesignated as part 774.
    7. The authority citation for newly designated part 774 is revised 
to read as follows:

    Authority: 18 U.S.C. 2510 et seq.; 30 U.S.C. 185; 42 U.S.C. 
6212; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 50 U.S.C. 1710 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C 2139(a); 43 U.S.C. 1354; 50 U.S.C. 
2401 et seq.; 46 U.S.C. 466(c); E.O. 12924.

    8. Newly designated Sec. 774.1 is revised to read as follows:


Sec. 774.1  Introduction.

    The Bureau of Export Administration (BXA) maintains the Commerce 
Control List (CCL), that includes all items (commodities, software, and 
technology) subject to the licensing authority of [[Page 25419]] BXA. 
The CCL does not include those items exclusively controlled for export 
by another department or agency of the U.S. Government. In instances 
where other agencies administer controls over related items, entries in 
the CCL will contain a reference to these controls. The CCL is 
contained in Supplement No. 1 to part 774. Supplement No. 2 contains 
the General Technology and Software Notes relevant to entries contained 
in the CCL, and Supplement No. 3 contains definitions to terms used in 
the CCL.
    9. Supplement No. 1 to newly designated part 774 is amended by 
revising the Requirements section of each applicable Export Control 
Classification Number (ECCN) to read as follows:

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

Category 1--Materials

A. Equipment, Assemblies and Components


1A01  Components made from fluorinated compounds.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A02  Composite structures or laminates.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to composite structures that are specially designed for 
missile applications (including specially designed subsystems and 
components)--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500
    CSR: Yes, except MT
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A03  Manufactures of non-fluorinated polymeric substancescontrolled by 
1C08.a in film, sheet, tape or ribbon form.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $200
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A22  Other composite structures of laminates usable in missile 
systems.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A27  Maraging steels (steels generally characterized by high nickel, 
very low carbon contect and the use of substitutional elements or 
precipitates to produce age-hardening), other than those controlled by 
ECCN 1A47, below, having an Ultimate Tensil Strength of 1.5  x  
10<SUP>9 N/m<SUP>2 (Pa) or greater measured at 20 deg.C, in the form of 
sheet, plate, or tubing with a wall or plate thickness equal to or less 
than 5.0mm(0.2 inch).

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A44  Crucibles made of materials resistant to liquid actinide metals.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25420]] 


1A45  Specialized packings for use in separating heavy water from 
ordinary water that are made of phosphor bronze mesh or copper (both 
chemically treated to improve wettability) and are designed for use in 
vacuum distillation towers.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A46  Aluminum and titanium alloys in the form of tubes or solid forms 
(including forgings) with an outside diameter of more than 75 mm (3 
inches).

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A47  Maraging steel capable of an ultimate tensile strength of 2050 
MPa (2.050 x 10<SUP>9 N/m<SUP>2) (300,000 lbs./in<SUP>2) or more at 293 
K (20  deg.C), except forms in which no linear dimension exceeds 75 mm 
(3 inches).

License Requirements

Reason for Control: NP, MT, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
MT applies to maraging steels controlled by this entry that also meet 
the specifications of 1A27--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes, except MT
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A48  Depleted uranium (any uranium containing less than 0.711% of the 
isotope U-235) in shipments of more than 1,000 kilograms in the form of 
shielding contained in X-ray units, radiographic exposure or 
teletherapy devices, radioactive thermoelectric generators, or 
packaging for the transportation of radioactive materials.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A50   Parts made of tungsten, tungsten carbide, or tungsten alloys 
(greater than 90% tungsten) having a mass greater than 20 kilograms and 
a hollow cylindrical symmetry (including cylinder segments) with an 
inside diameter greater than 10 cm (4 in), but less than 30 cm (12 in), 
except parts specially designed for use as weights or gamma-ray 
collimators.

License Requirements

Reason for Control: NP, AT

 Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A84   Chemical agents, including tear gas formulation containing 1 
percent or less of orthochlorobenzalmalononitrile (CS), or 1 percent or 
less of chloroacetophenone (CN), except in individual containers with a 
net weight of 20 grams or less; smoke bombs; non-irritant smoke flares, 
canisters, grenades and charges; other pyrotechnic articles having dual 
military and commercial use; and fingerprinting powders, dyes and inks.

License Requirements

Reason for Control: CC

 Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1A88  Bulletproof and bullet resistant vests.

License Requirements

Reason for Control: UN

 Control(s) and Country Chart
UN applies to entire entry--UN Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25421]] 

B. Test, Inspection and Production Equipment


1B01   Equipment for the production of fibers, prepregs, preforms or 
composites controlled by 1A02 or 1C10, as follows, and specially 
designed components and accessories therefor.

License Requirements

Reason for Control: NS, MT, NP, AT

 Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry EXCEPT 1B01.d.4--MT Column 1
NP applies to filament winding machines described in 1B01.a that are 
capable of winding cylindrical rotors having a diameter between 75mm (3 
in) and 400 mm (16 in) and lengths of 600 mm (24 in) or greater; AND 
coordinating and programming controls and precision mandrels for these 
filament winding machines--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A for 1B01.a; $5000 for all other items
    CSR: Yes, except MT and NP
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B02   Systems and components therefor specially designed for producing 
metal alloys, metal alloy powder or alloyed materials controlled by 
1C02.a.2, 1C02.b, or 1C02.c.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B03  Tools, dies, molds or fixtures, for superplastic forming or 
diffusion bonding titanium or aluminum or their alloys, specially 
designed for the manufacture of the following:

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B16  Plants for the production of uranium hexafluoride (UF<INF>6) and 
specially designed or prepared equipment (including UF<INF>6 
purification equipment), and specially designed parts and accessories 
therefor.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to items that appear on International Atomic Energy List--NP 
Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes, except Bulgaria, Romania, or Russia for NP only
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled


1B17  Electrolytic cells for the production of fluorine with a 
production capacity greater than 250 grams of fluorine per hour, and 
specially designed parts and accessories therefor.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to items that appear on the International Atomic Energy 
List--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes, except Bulgaria, Romania, or Russia for NP only
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B18  Commodities on the International Munitions List

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to equipment for the production of rocket propellants--MT 
Column 1
RS applies to 1B18.a--RS Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000 for 1B18.a for Australia, Japan, New Zealand, and NATO 
only; $5000 for 1B18.b
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25422]] 


1B21  Other equipment for the production of fibers, prepregs, preforms 
or composites.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B28  Other equipment for the production of propellants.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B30  Pyrolytic deposition and densification equipment.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B41  Filament winding machines not controlled by 1B01, controls, and 
mandrels.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B42  Electromagnetic isotope separators designed for, or equipped 
with, single or multiple ion sources capable of providing a total ion 
beam current of 50 mA or greater.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B50  Vacuum and controlled environment furnaces.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B51  Instruments designed for vacuum service that are capable of 
measuring absolute or differential pressures to an accuracy of plus or 
minus 1 torr in the pressure range of 0 to 100 torr absolute where all 
whetted surfaces, including pressure sensing elements, are constructed 
of or protected by corrosion-resistant materials such as nickel, nickel 
alloys, phosphor bronze, stainless steel, aluminum, or aluminum alloys 
and specially designed or modified component parts therefor.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B52  Water-hydrogen sulfide exchange tray columns constructed from 
fine carbon steel (such as ASTM A516) with a diameter of 1.8 m (6 ft) 
or greater and made to operate at a nominal pressure of 2 MPa (300 psi) 
or greater.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1 [[Page 25423]] 

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B53  Hydrogen-cryogenic distillation columns.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B54  Ammonia synthesis converters.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry AT--Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B58  Facilities or plants, and related equipment, for the production, 
recovery, extraction, concentration, or handling of tritium.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B59  Pumps for circulating solutions of diluted or concentrated 
potassium amide catalyst in liquid ammonia (KNH<INF>2/NH<INF>3).

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B70  Equipment that can be used in the production of chemical weapons 
precursors and chemical warfare agents.

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 3
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1B71  Equipment that can be used in the production of biological 
weapons.

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 3
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

C. Materials


1C01  Materials specially designed for use as absorbers of 
electromagnetic waves, or intrinsically conductive polymers.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25424]] 


1C02  Metal alloys, metal alloy powder or alloyed materials.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C03  Magnetic metals of all types and of whatever form, having the 
following characteristics:

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C04  Uranium titanium alloys or tungsten alloys with a matrix based on 
iron, nickel or copper, with all of the following characteristics:

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C05  Superconductive composite conductors in lengths exceeding 100 m 
or with a mass exceeding 100 g.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C06  Fluids and lubricating materials.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C07  Ceramic base materials, non-composite ceramic materials, ceramic 
matrix composite materials and precursor materials.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to items described in 1C07.d (dielectric constant less than 
6 at frequencies from 100Hz to 10,000 Mhz) for use in missile radomes--
MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000, except N/A for 1C07.e
    CSR: Yes, except 1C07.d
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C08  Non-fluorinated polymeric substances.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $200
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C09  Unprocessed fluorinated compounds.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1 [[Page 25425]] 

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C10  Fibrous and filamentary materials that may be used in organic 
matrix, metallic matrix or carbon matrix composite structures or 
laminates.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to 1C10.a (all aramid fibrous and filamentary materials 
[FFM]), 1C10.b (all carbon FFM), and 1C10.c (all glass FFM)--NP Column 
1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500, except N/A for NP items
    CSR: N/A
    GBS: N/A
    NSG: Yes, except to Bulgaria, Romania, or Russia for NP only
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C18  Items on the International Munitions List.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: Yes for items listed in Advisory Note to 1C18
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C19  Items on the International Atomic Energy List (e.g., zirconium 
metal, nickel powder and porous nickel metal, lithium, beryllium metal, 
wet-proofed platinized catalysts, and hafnium).

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry except zirconium in the form of foil or 
strip having a thickness not exceeding 0.10 mm (0.004 in) in shipments 
of 200 kg or less--NS Column 1
NP applies to zirconium metal, alloys, or compounds in shipments of 5 
kg or less--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes, except to Bulgaria, Romania, or Russia for NP only
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C21  Other materials for reduced observables such as radar 
reflectivity, ultraviolet/infrared signatures and acoustic signatures 
(i.e., stealth technology), for applications usable for missile systems 
and subsystems.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C22  Tungsten, molybdenum, and alloys of these metals in the form of 
uniform spherical or atomized particles of 500 micrometer diameter or 
less with a purity of 97 percent or higher for fabrication of rocket 
motor components; i.e., heat shields, nozzle substrates, nozzle 
throats, and thrust vector control surfaces.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C27  Other ceramic or graphite materials usable in missile systems.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C31  Propellants, constituent chemicals, and polymeric substances for 
propellants.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1
[[Page 25426]]

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C49  Platinized catalysts not controlled by 1C19.e that are specially 
designed or prepared for promoting the hydrogen isotope exchange 
reaction between hydrogen and water for the recovery of tritium from 
heavy water or for heavy water production.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C50  Fibrous and filamentary materials not controlled by 1C10.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C51  High purity (99.99% or greater) bismuth with very low silver 
content (less than 10 parts per million).

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C52  High purity calcium containing both less than 1,000 parts per 
million by weight of metallic impurities other than magnesium and less 
than 10 parts per million of boron.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C53  High purity magnesium containing both less than 200 parts per 
million by weight of metallic impurities other than calcium and less 
than 10 parts per million of boron.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C54  Alpha-emitting radionuclides having an alpha half-life of 10 days 
or greater, but less than 200 years, including compounds and mixtures 
containing these radionuclides with a total alpha activity of 1 curie 
(37 GBq) per kilogram or greater, and equipment containing these 
radionuclides.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C55  Helium isotopically enriched in the helium-3 isotope, in any 
form, whether or not mixed with other materials, or contained in any 
equipment or device, except products or devices containing less than 1 
g of helium-3.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A [[Page 25427]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C56  Chlorine trifluoride (C1F<INF>3).

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C57  Boron and boron compounds, mixtures, and loaded materials in 
which the boron-10 isotope is more than 20% by weight of the total 
boron content.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C58  Radium-226.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C60  Precursor and intermediate chemicals used in the production of 
chemical warfare agents.

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C61  Microorganisms and toxins.

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C80  Inorganic chemicals listed in Supplement No. 1 to part 754 of the 
EAR.

License Requirements

Reason for Control: SS

Control(s)
    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of this 
subchapter. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

* * * * *


1C81  Crude petroleum including reconstituted crude petroleum, tar 
sands & crude shale oil listed in Supplement No. 1 to part 754 of the 
EAR.

License Requirements

Reason for Control: SS

Control(s)
    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of this 
subchapter. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

* * * * *


1C82  Other petroleum products listed in Supplement No. 1 to part 754 
of the EAR.

License Requirements

Reason for Control: SS

Control(s)
    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of this 
subchapter. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

* * * * *


1C83  Natural gas liquids and other natural gas derivatives listed in 
Supplement No. 1 to part 754 of the EAR.

License Requirements

Reason for Control: SS

Control(s)
    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of this 
subchapter. The [[Page 25428]] Commerce Country Chart is not designed 
to determine licensing requirements for items controlled for SS 
reasons.

List of Items Controlled

* * * * *


1C84  Manufactured gas and synthetic natural gas (except when 
commingled with natural gas and thus subject to export authorization 
from the Dept. of Energy) listed in Supplement No. 1 to part 754 of the 
EAR.

License Requirements

Reason for Control: SS

Control(s)
    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of this 
subchapter. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

* * * * *


1C88  Western red cedar (thuja picata), logs and timber, and rough, 
dressed and worked lumber containing wane listed in Supplement No. 2 to 
part 754 of the EAR.

License Requirements

Reason for Control: SS

Control(s)
    SS applies to entire entry. For licensing requirements (and 
possible License Exceptions) proceed directly to part 754 of this 
subchapter. The Commerce Country Chart is not designed to determine 
licensing requirements for items controlled for SS reasons.

List of Items Controlled

* * * * *


1C92  Oil well perforators.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C93  Fibrous and filamentary materials, not controlled by 1C10 or 
1C50, for use in composite structures and with a specific modulus of 
3.18 x 10<SUP>6 m or greater and a specific tensile strength of 
7.62 x 10<SUP>4 m or greater.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1C94  Fluorocarbon electronic cooling fluids.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
D. Software


1D01  Software specially designed or modified for the development, 
production, or use of equipment controlled by 1B01, 1B02, 1B03, 1B16, 
1B17, or 1B18.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software for the development, production, or use of 
equipment controlled by 1B01 and 1B18.a for MT reasons--MT Column 1
NP applies to software for the development, production or use of 
equipment controlled by 1B01 for NP reasons--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia, for NP only
    CIV: Yes, except MT and NP
    TSR: Yes, except MT and NP

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1D02 Software for the development of organic matrix, metal matrix or 
carbon matrix laminates or composites.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software specially designed or modified for the 
development of composites controlled by 1A, 1B or 1C entries for MT 
reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: Yes, except MT
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1D23  Other software specially designed for the ``development'', 
``production'', or ``use'' of items controlled by 1A, 1B, and 1C for 
missile technology reasons.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A [[Page 25429]] 
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1D41  Software, not controlled by 1D01, specially designed or modified 
for the ``development'', ``production'', or ``use'' of filament winding 
machines controlled by 1B41.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1D50  Specially designed software for computer control and monitoring 
systems specially configured for vacuum and controlled atmosphere 
metallurgical melting and casting furnaces controlled by 1B50.b.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1D60  Software for process control that is specifically configured to 
control or initiate production of chemical precursors controlled by 
ECCN 1C60.

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1D93  Software specially designed for the ``development'', 
``production'', or ``use'' of fibrous and filamentary materials 
controlled by 1C50.b or 1C93.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1D94  Software specially designed for the ``development'' or 
``production'' of fluorocarbon electronic cooling fluids controlled by 
1C94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


1E01  Technology according to the General Technology Note for the 
development or production of equipment or materials controlled by 
1A01.b, 1A01.c, 1A02, 1A03, 1B01, 1B02, 1B03, 1B18, 1C01, 1C02, 1C03, 
1C04, 1C05, 1C06, 1C07, 1C08, 1C09, 1C10, or 1C18.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology for items controlled by 1A02 or 1B01 for MT 
reasons--MT Column 1
NP applies to technology for the development or production of items 
controlled by 1B01 and materials controlled by 1C10 for NP reasons--NP 
Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia, for NP only
    CIV: N/A
    TSR: Yes, except MT and NP, and except Iran and Syria

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E02  Other technology.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes, except Iran and Syria

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25430]] 


1E19  Technology according to the General Technology Note for the 
``development'', ``production'', or ``use'' of equipment or materials 
controlled by 1B16, 1B17, or 1C19.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to technology for the development, production or use of 
plants controlled by 1B16, equipment controlled by 1B17, or materials 
controlled by 1C19--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia for NP only
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E23  Other technology according to the General Technology Note for the 
``development'', ``production'', or ``use'' of items controlled by 
1A22, 1A27, 1B28, 1B30, 1C21, 1C22, 1C27, or 1C31.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E24  Technology (including processing conditions) and procedures for 
the regulation of temperature, pressure or atmosphere in autoclaves or 
hydroclaves when used for the production of composites or partially 
processed composites.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E25  Technology for producing pyrolytically derived materials formed 
on a mold, mandrel, or other substrate from precursor gases that 
decompose at 1,300 deg.C to 2,900 deg.C temperature range at pressures 
of 130 Pa (1 mm Hg) to 20 kPa (150 mm Hg), including technology for the 
composition of precursor gases, flow-rates, and process control 
schedules and parameters.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E40   Technology for the use of filament winding machines controlled 
by 1B01.a that are capable of winding cylindrical rotors having a 
diameter between 3 inches and 16 inches and a length of 24 inches or 
greater.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E41  Technology for the ``development'', ``production'', or ``use'' of 
items controlled by 1A44, 1A45, 1A46, 1A47, 1A48, 1A50, 1B41, 1B42, 
1B50, 1B51, 1B52, 1B53, 1B54, 1B58, 1B59, 1C49, 1C50, 1C51, 1C52, 1C53, 
1C54, 1C55, 1C56, 1C57, or 1C58 or for the ``use'' of items controlled 
by 1C10.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E60  Technology for the production and/or disposal of chemical 
precursors described in ECCN 1C60, and technology as described in the 
list below for facilities designed or intended to produce chemicals 
described in ECCN 1C60.

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25431]] 


1E61  Technology for the production and/or disposal of microbiological 
items described in ECCN 1C61.

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E70  Technology for production of commodities described in ECCNs 1B70 
and 1B71 (equipment that can be used in production of chemical warfare 
agents or their precursors, or biological agents).

License Requirements

Reason for Control: CB, AT

Control(s) and Country Chart
CB applies to entire entry--CB Column 3
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


1E94  Technology for the development, production, or use of fibrous and 
filamentary materials controlled by 1C93 or fluorocarbon electronic 
cooling fluids controlled by 1C94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 2--Materials Processing

A. Equipment, Assemblies and Components
    Note to Category 2A: Category 2A does not control balls with 
tolerance specified by the manufacturer in accordance with ISO 3290 
as grade 5 or worse.


2A01   Ball bearings or solid roller bearings, except tapered roller 
bearings, having tolerances specified by the manufacturer in accordance 
with ABEC 7, ABEC 7P, or ABEC 7T or ISO Standard Class 4 or better (or 
national equivalents).

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A02   Other ball bearings or solid roller bearings, except tapered 
roller bearings, having tolerances specified by the manufacturer in 
accordance with ABEC 9, ABEC 9P or ISO Standard Class 2 or better (or 
national equivalents).

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A03   Solid tapered roller bearings, having tolerances specified by 
the manufacturer in accordance with ANSI/AFBMA Class 00 (inch) or Class 
A (metric) or better (or national equivalents) and having either of the 
following characteristics.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A04   Gas-lubricated foil bearing manufactured for use at operating 
temperatures of 561 K (288 deg. C) or higher and a unit load capacity 
exceeding 1 MPa.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A05   Active magnetic bearing systems.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1 [[Page 25432]] 
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A06  Fabric-lined self-aligning or fabric-lined journal sliding 
bearings manufactured for use at operating temperatures below 219 K 
(-54 deg. C) or above 423 K (150 deg.C).

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A19   Commodities on the International Atomic Energy List (e.g., power 
generating and/or propulsion equipment, neutron generator systems, and 
valves for gaseous diffusion separation process).

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to 2A19.b & c--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes for 2A19.b and c, except to Bulgaria, Romania, or Russia
    CIV: Yes, except NP (see Advisory Note to 2A19)

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A44   Specialized instruments for hydrodynamic experiments.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A48  Valves not controlled by 2A19.c that are 5 mm (0.2 in.) or 
greater in diameter, with a bellows seal, wholly made of or lined with 
aluminum, aluminum alloy, nickel, or alloy containing 60% or more 
nickel, either manually or automatically operated, and specially 
designed parts and accessories therefor.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A49  Generators and other equipment specially designed, prepared, or 
intended for use with nuclear plants.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A50  Equipment related to nuclear material handling and processing and 
to nuclear reactors.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A51  Piping, fittings and valves made of, or lined with, stainless 
steel, copper-nickel alloy or other alloy steel containing 10% or more 
nickel and/or chromium.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A [[Page 25433]] 
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A52  Vacuum pumps with an input throat size of 38 cm (15 in.) or 
greater with a pumping speed of 15,000 liters/second or greater and 
capable of producing an ultimate vacuum better than 10<SUP>-4 Torr 
(0.76 x 10<SUP>-4 mbar).

License Requirements

Reason for Control: NP, AT

Control(s) amd Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A53  Pumps designed to move molten metals by electromagnetic forces.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2A94  Portable electric generators and specially designed parts.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


2B01  Numerical control units, motion control boards, specially 
designed for numerical control applications on machine tools, machine 
tools, and specially designed components therefor.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes, except Bulgaria, Romania, or Russia
    CIV: Yes, except NP (for items described in Advisory Note 2)

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B02  Non-numerically controlled machine tools for generating optical 
quality surfaces.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B03  Numerically controlled or manual machine tools specially designed 
for cutting, finishing, grinding or honing either of the following 
classes of bevel or parallel axis hardened (R<INF>c = 40 or more) 
gears, and specially designed components, controls and accessories 
therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes for 2B03.a

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B04  Hot isostatic presses, as follows, and specially designed dies, 
molds, components, accessories and controls therefor.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A [[Page 25434]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B05  Equipment specially designed for deposition, processing and in-
process control of inorganic overlays, coatings and surface 
modification, as follows, for non-electronic substrates by processes 
shown in the Table and associated Notes following 2E03.d and specially 
designed automated handling, positioning, manipulation and control 
components therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B06  Dimensional inspection or measuring systems or equipment.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to 2B06.a, b or c--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: Yes for 2B06.d
    GBS: N/A
    NSG: Yes for 2B06.a, b, and c, except to Bulgaria, Romania, or 
Russia
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B07  Robots, and specially designed controllers and end-effectors 
therefor.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to robots and NP Column 1 end-effectors that are controlled 
by 2B07.b OR that are specially designed or rated as radiation hardened 
to withstand greater than 5 x 10\4\ grays (Si) (5 x 10\6\ rad (Si)) 
without operational degradation, and to specially designed controllers 
therefor--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000, except N/A for NP
    CSR: Yes, except NP
    GBS: N/A
    NSG: Yes, except Bulgaria, Romania, or Russia, for NP only
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B08  Assemblies, units or inserts specially designed for machine 
tools, or for equipment controlled by 2B06 or 2B07.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry NS Column 1
NP applies to entire entry NP Column 1
AT applies to entire entry AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes, except Bulgaria, Romania, or Russia
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B09  Specially designed printed circuit boards with mounted components 
and software therefor, or compound rotary tables or tilting spindles, 
capable of upgrading, according to the manufacturer's specifications, 
numerical control units, machine tools or feed-back devices to or above 
the levels specified in ECCNs 2B01, 2B02, 2B03, 2B04, 2B05, 2B06, 2B07, 
or 2B08.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes, except Bulgaria, Romania, or Russia
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B18  Commodities on the International Munitions List.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to specialized machinery, equipment, and gear for producing 
rocket systems (including ballistic missile systems, space launch 
vehicles, and sounding rockets) and unmanned air vehicle systems 
(including cruise missile systems, target drones, and reconnaissance 
drones) usable in systems that are controlled for MT reasons including 
their propulsion systems and components, and pyrolytic deposition and 
densification equipment--MT Column 1
RS applies to entire entry--RS Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A [[Page 25435]] 
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B24  Isostatic presses not controlled by 2B04 and specially designed 
dies and moulds, and controls therefor.

License Requirements

Reason for Control: MT, NP, AT

Control(s) and Country Chart
MT applies to entire entry--NS Column 1
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B41  Numerically controlled machine tools for vertical and/or boring 
not controlled by ECCN 2B01.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B44  Isostatic presses, not controlled by 2B04 or 2B24, capable of 
achieving a maximum working pressure of 10,000 psi (69 MPa) or greater 
and having a chamber cavity with an inside diameter in excess of 152 mm 
(6 inches) and specially designed dies and moulds, and controls 
therefor.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B50  Spin-forming and flow-forming machines and precision rotor-
forming mandrels, and specially designed components therefor.

License Requirements

Reason for Control: NP, MT, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
MT applies to 2B50.a except those that are not usable in the production 
of propulsion components and equipment (e.g., motor cases) for missile 
systems--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B51  Centrifuge rotor fabrication assembly, and straightening 
equipment and bellows-forming mandrels and dies.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B53  Centrifugal balancing machines, fixed or portable, horizontal or 
vertical.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B85  Equipment specially designed for manufacturing shotgun shells; 
and ammunition hand-loading equipment for both cartridges and shotgun 
shells.

License Requirements

Reason for Control: UN

Control(s) and Country Chart
UN applies to entire entry--UN Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A [[Page 25436]] 
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B91  Numerical control units for machine tools and numerically 
controlled machine tools, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B92  Manual dimensional inspection machines with two or more axes, and 
measurement uncertainty equal to or less (better) than (3 + L/300) 
micrometer in any axes (L measured length in mm).

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B93  Gearmaking and/or finishing machinery not controlled by 2B03 
capable of producing gears to a quality level of better than AGMA 11.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2B94  Robots not controlled by 2B07 that are capable of employing 
feedback information in real-time processing from one or more sensors 
to generate or modify programs or to generate or modify numerical 
program data.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials--[Reserved]
D. Software


2D01  Software specially designed or modified for the development, 
production or use of equipment controlled by 2A01, 2A02, 2A03, 2A04, 
2A05, 2A06, 2B01, 2B02, 2B03, 2B04, 2B05, 2B06, 2B07, 2B08, or 2B09.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software specially designed or modified for the 
development, production or use of items controlled by 2B04--MT Column 1
NP applies to software described in this entry for the development, 
production or use of equipment controlled by 2B01, 2B04, and 2B06.a, .b 
and .c (including software for the simultaneous measurements of wall 
thickness and contour), 2B07, and 2B09 for NP reasons--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes for software for 2B01, 2B06.a, .b, .c, 2B07, and 2B09 
except to Bulgaria, Romania, or Russia. Software (including 
documentation) for numerical control units must be: in machine 
executable form only; and limited to the minimum necessary for the use 
(i.e., installation, operation, and maintenance) of the units.
    CIV: N/A
    TSR: Yes, except MT and NP

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D02  Specific software.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D18  Software for the development, production or use of equipment 
controlled by 2B18.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software for the development, production or use of items 
controlled by 2B18 for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes, except MT and Iran and Syria [[Page 25437]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D19  Software for the development, production or use of equipment 
controlled by 2A19.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to software for the development, production or use of items 
controlled by 2A19.b and .c--NP Column 1
AT applies to entire entry AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia for NP only
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D24  Software for the development, production or use of commodities 
controlled by 2B24.

License Requirements

Reason for Control: MT, NP, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D41  Software specially designed or modified for the development, 
production or use of numerically controlled machine tools controlled by 
ECCN 2B41.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry NP Column 1
AT applies to entire entry AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, provided that software (including documentation) for 
``numerical control'' units is: exported in machine executable form 
only; and limited to the minimum necessary for the use (i.e., 
installation, operation, and maintenance) of the units.
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D44  Software for the development, production or use of commodities 
controlled by 2B44.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D49  Software specially designed or modified for the development, 
production or use of equipment controlled by 2A49.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D50  Software specially designed or modified for the development, 
production or use of equipment controlled by 2A50 or 2B50.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D53  Software specially designed or modified for the development, 
production or use of centrifugal balancing machines controlled by 2B53.

License Requirements



Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25438]] 


2D92  Software specially designed for the development or production of 
portable electric generators controlled by 2A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D93  Software specially designed for the development or production of 
manual dimensional inspection machines controlled by 2B92.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2D94  Software specially designed for the development, production, or 
use of numerical control units and numerically controlled machine tools 
controlled by 2B91, gear making and/or finishing machinery controlled 
by 2B93, or robots controlled by 2B94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


2E01  Technology according to the General Technology Note for the 
development of equipment or software controlled by 2A01, 2A02, 2A03, 
2A04, 2A05, 2A06, 2B01, 2B02, 2B03, 2B04, 2B05, 2B06, 2B07, 2B08, 2B09, 
2D01 or 2D02.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology for the development of items controlled by 
2B04--MT Column 1
NP applies to technology for the development of items controlled by 
2B04--NP Column 1
NP applies to technology for the development of items controlled for NP 
reasons by 2B01, 2B06.a .b and .c, 2B07, 2B08, and 2B09, and software 
controlled by 2D01 for NP reasons-- NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes for NP, except techology for 2B04, and except Bulgaria, 
Romania, or Russia
    CIV: N/A
    TSR: Yes, except MT and NP

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E02  Technology according to the General Technology Note for the 
production of equipment controlled by 2A01, 2A02, 2A03, 2A04, 2A05, 
2A06, 2B01, 2B02, 2B03, 2B04, 2B05, 2B06, 2B07, 2B08 or 2B09.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology for the production of items controlled by 
2B04--MT Column 1
NP applies to technology for the production of items controlled by 
2B04--NP Column 1
NP applies to technology for the production of items controlled by 
2B01, 2B06.a, .b, and .c, 2B07, 2B08, and 2B09 for NP reasons--NP 
Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except technology for 2B04 and except Bulgaria, Romania, 
or Russia, for NP only
    CIV: N/A
    TSR: Yes, except MT and NP

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E03  Other Technology.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to technology controlled by 2E03.a.1 or a.3--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia, for 2E03.a.1 and a.3 
only
    CIV: N/A
    TSR: Yes, except 2E03.a.1, a.3, b, and d

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E18  Technology for the development, production or use of equipment 
controlled by 2B18.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology for the development, production or use of 
items controlled by 2B18 for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes, except MT and Iran and Syria [[Page 25439]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E19  Technology for the development, production, or use of equipment 
controlled by 2A19.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to technology for the development, production or use of 
items controlled by 2A19.b and .c--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia for NP only
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E20  Technology for the use of commodities controlled by 2B04.

License Requirement

Reason for Control: MT, NP, AT

Control (s) and Country Chart
MT applies to entire entry--MT Column 1
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E24  Technology for the development, production, or use of commodities 
controlled by 2B24.

License Requirement

Reason for Control: MT, NP, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E40  Technology for the use of hot isostatic presses controlled by 
2B04, and systems or equipment controlled by 2B06.a, .b, or c, 2B07, 
2B08 or 2B09.

License Requirement

Reason for Control: NP, AT

Control(s) and Country Chart
    NP applies to technology NP Column 1 for the use of items 
controlled by 2B04, 2B06.a, .b or .c, 2B07, 2B08, and 2B09 for NP 
reasons.
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E41  Technology for the development, production or use of numerically 
controlled machine tools controlled by 2B41 or for the use of equipment 
controlled by 2B01.

License Requirement

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E44  Technology for the development, production or use of specialized 
instruments for hydrodynamic experiments controlled by 2A44 or 
isostatic presses controlled by 2B44.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E48  Technology for the development, production or use of valves 
controlled by 2A48.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E49  Technology for the development, production or use of equipment 
controlled by 2A49.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A [[Page 25440]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E50  Technology for the development, production or use of equipment 
controlled by 2A50 or 2B50.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E51  Technology for the development, production or use of equipment 
controlled by 2A51 or 2B51.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E52  Technology for the development, production or use of equipment 
controlled by 2A52.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E53  Technology for the development, production or use of equipment 
controlled by 2A53 or 2B53.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E93  Technology for the development, production, or use of portable 
electric generators controlled by 2A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


2E94  Technology for the development, production, or use of numerical 
control units and numerically controlled machine tools controlled by 
2B91, manual dimensional inspection machines controlled by 2B92, gear 
making and/or finishing machinery controlled by 2B93, or robots 
controlled by 2B94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 3--Electronics Design, Development and Production

A. Equipment, Assemblies and Components


3A01  Electronic devices and components.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
    NS applies to entire entry--NS Column 1
    MT applies to 3A01.a.1.a--MT Column 1
    NP applies to 3A01.e.5--NP Column 1
    AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500: 3A01.c; $3000: 3A01.b.1 to b.3, 3A01.d to 3A01.f; 
$5000: 3A01.a, 3A01.b.4 to b.7
    CSR: Yes, except 3A01.a.1.a and 3A01.e.5
    GBS: Yes, except 3A01.a.1.a, b.1, b.3 to b.7, c to f
    NSG: Yes, except Bulgaria, Romania, or Russia, for 3A01.e.5
    CIV: Yes for 3A01.a.4.a and a.4.b (see Advisory Note 3 to Category 
3--Electronics Design, Development and Production)

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A02  General purpose electronic equipment.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000: 3A02.a, 3A02.e to g; [[Page 25441]] $5000: 3A02.b to d, 
3A02.h
    CSR: Yes
    GBS: Yes for 3A02.a.1
    NSG: N/A
    CIV: Yes for 3A02.h

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A22  Accelerators capable of delivering electromagnetic radiation 
produced by ``bremsstrahlung'' from accelerated electrons of 2 Me V or 
greater and systems containing the accelerators, excluding that 
equipment specially designed for medical purposes.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

 License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A41  Capacitors not controlled by 3A01.e.2.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A42:  Superconducting solenoidal electromagnets other than those 
described in 3A01.e.3.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A43  Switching devices.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A44  High-speed pulse generators with output voltages greater than 6 
volts into a less than 55-ohm resistive load, and with pulse transition 
times less than 500 picoseconds (defined as the time interval between 
10% and 90% voltage amplitude).

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A46  Firing sets and equivalent high-current pulse generators (for 
detonators controlled by 3A49).

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A48  Multistage light gas gun or other high-velocity gun systems 
(coil, electromagnetic, electrothermal, or other advanced systems) 
capable of accelerating projectiles to 2 kilometers per second or 
greater and specialized components therefor.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25442]] 


3A49  Detonators and multipoint initiation systems (exploding bridge 
wire, slapper, etc.).

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A50  Inverters, converters, frequency changers, and generators.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A51  Mass spectrometers.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A52  Oscilloscopes, transient recorders, and specially designed 
components therefor.

 License Requirements

 Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
 AT applies to entire entry--AT Column 1

License Alternatives

 License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

 Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A53  High-voltage direct current power supplies capable of 
continuously producing, over a time period of 8 hours, 20,000 V or 
greater with a current output of 1 amp or greater and with a current or 
voltage regulation better than 0.1 percent.

License Requirements

 Reason for Control: NP, AT

 Control(s) and Country Chart
 NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A54  Direct current high-power supplies capable of continuously 
producing, over a time period of 8 hours, 100 V or greater with a 
current output of 500 amps or greater and with a current or voltage 
regulation better than 0.1 percent.

License Requirements

 Reason for Control: NP, AT

 Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

 License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

 Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A55  Flash X-ray generators and electron accelerators not controlled 
by 3A01.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

 Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A80  Voice print identification and analysis equipment and parts, 
n.e.s.

License Requirements

 Reason for Control: CC

 Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A [[Page 25443]] 
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A81  Polygraphs (except biomedical recorders designed for use in 
medical facilities for monitoring biological and neurophysical 
responses); fingerprint analyzers, cameras and equipment, n.e.s.; 
automated fingerprint and identification retrieval systems, n.e.s.; 
psychological stress analysis equipment; electronic monitoring 
restraint devices; and specially designed parts and accessories, n.e.s.

License Requirements

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

 License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A92  Electronic devices and components not controlled by 3A01.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A93  Electronic test equipment in Category 3A n.e.s.

License Requirements

 Reason for Control: AT

 Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1000 for Syria only
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

 Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3A94  General purpose electronic equipment not controlled by 3A02.

License Requirements

 Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

 License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

 Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


3B01  Equipment for manufacture or testing of semiconductor devices or 
materials, as follows, and specially designed components and 
accessories therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

 License Exceptions

     LVS: $500
     CSR: Yes
     GBS: N/A
     NSG: N/A
     CIV: N/A

 Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3B91  Equipment not controlled by 3B01 for the manufacture or testing 
of electronic components and materials, and specially designed 
components and accessories therefor.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials


3C01  Hetero-epitaxial materials consisting of a ``substrate'' with 
stacked epitaxially grown multiple layers.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25444]] 


3C02  Resist materials, and ``substrates'' coated with controlled 
resists.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3C03  Organo-inorganic compounds as described in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3,000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3C04  Hydrides of phosphorus, arsenic or antimony, having a purity 
better than 99.999%, even diluted in inert gases or hydrogen.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
D. Software


3D01  Software specially designed for the development or production of 
equipment controlled by 3A01.b to 3A01.f, 3A02, or 3B01.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to software for the development or production of items 
controlled for NP reasons by 3A01.e.5.--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia, for ``software'' for 
3A01.e.5
    CIV: N/A
    TSR: Yes, except 3A01.e.5

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3D02  Software specially designed for the use of stored program 
controlled equipment controlled by 3B01.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3D03  Computer-aided-design (CAD) ``software'' for semiconductor device 
or integrated circuits.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3D21  Software specially designed for the development or production of 
items controlled by 3A01.a.1.a.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3D22  Software for the development, production, or use of radiographic 
equipment (linear accelerators) controlled by 3A22.

License Requirements

Reason for Control: MT, AT

Control(s) Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A [[Page 25445]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3D80  Software specially designed for the development, production, or 
use of items controlled by 3A80 and 3A81.

License Requirements:

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire--entry CC Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3D94  Software specially designed for the development, production, or 
use of electronic devices or components controlled by 3A92, electronic 
test equipment controlled by 3A93, general purpose electronic equipment 
controlled by 3A94, or manufacturing and test equipment controlled by 
3B91.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


3E01  Technology according to the General Technology Note for the 
development or production of equipment or materials controlled by 3A01, 
3A02, 3B01, 3C01, 3C02, 3C03 or 3C04.

License Requirements

Reason for Control: NS, MT, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology specially designed for the development or 
production of items controlled for MT reasons by 3A01.a.1.a--MT Column 
1
NP applies to technology specially designed for the development or 
production of items controlled for NP reasons by 3A01.e.5 --NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: Yes, except 3A01.a.1.a and e.5

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3E02  Other technology for the development or production of equipment 
and components described in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3E22  Technology for the development, production, or use of 
radiographic equipment (linear accelerators) controlled by 3A22.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3E40  Technology for the development, production, or use of items 
controlled by 3A41, 3A42, 3A43, 3A44, 3A46, 3A48, 3A49, 3A50, 3A51, 
3A52, 3A53, 3A54, or 3A55.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3E41  Technology for the use of flash discharge type x-ray systems, 
including tubes, controlled by 3A01.e.5.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3E80  Technology specially designed for the development, production, or 
use of items controlled by 3A80 and 3A81.

License Requirements

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A [[Page 25446]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


3E94  Technology for the development, production, or use of electronic 
devices or components controlled by 3A92, electronic test equipment 
controlled by 3A93, general purpose electronic equipment controlled by 
3A94, or manufacturing and test equipment controlled by 3B91.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 4--Computers

    Note 1: Computers, related equipment or ``software'' performing 
telecommunications or ``local area network'' functions must also be 
evaluated against the performance characteristics of the 
telecommunications entries in Category 5.
    N.B. 1: Control units that directly interconnect the buses or 
channels of central processing units, ``main storage'' or disk 
controllers, are not regarded as telecommunications equipment 
described in the telecommunications entries in Category 5.
    N.B. 2: For the control status of ``software'' that provides 
routing or switching of ``datagram'' or ``fast select'' packets 
(i.e., packet by packet route selection) or for ``software'' 
specifically designed for packet switching, see the 
telecommunications entries in Category 5.
    Note 2: Computers, related equipment or ``software'' performing 
cryptographic, cryptanalytic, certifiable multi-level security or 
certifiable user isolation functions, or that limit electronmagnetic 
compatibility (EMC), must also be evaluated against the performance 
characteristics of the ``information security'' entries in Category 
5.
A. Equipment, Assemblies and Components


4A01  Electronic computers and related equipment, as follows, and 
assemblies and specially designed components therefor.

License Requirements

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

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to 4A01.a--MT Column 1
AT applies to entire entry--AT Column 1

    NP applies to computers with a CTP exceeding 500 Mtops destined for 
a country listed in Country Group D:2. This reason for control does not 
relate directly to a licensing requirement, but rather an additional 
review conducted on all applications by the Bureau of Export 
Administration. Accordingly, no additional column is provided for 
purposes of identifying licensing requirements.
    SC (Supercomputer) controls apply to all destinations except Japan 
for computers with a Composite Theoretical Performance equal to or 
exceeding 1500 Mtops. These controls do not relate directly to a 
licensing requirement, but rather what type of supercomputer support 
documentation (e.g., security plan) is required, conditions that may be 
placed on the license, and the licensing review policy the application 
will be subject to at the Bureau of Export Administration.
    Accordingly, no additional column is provided for purposes of 
identifying licensing requirements. (Reference Sec. 742.12 for 
information on licensing review policies, required support 
documentation, security conditions and plans, and licensing policies.)

License Alternatives

License Exceptions

    LVS: $5000 for 4A01.a; N/A for 4A01.b
    CSR: Yes, except MT and except supercomputers as defined in 
Sec. 742.12 (no supercomputer restriction for Japan)
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4A02  Hybrid computers, as follows, and assemblies and specially 
designed components therefor.

License Requirements

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

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to hybrid computers combined with specially designed 
software, for modeling, simulation, or design integration of complete 
rocket systems and unmanned air vehicle systems that are usable in 
systems controlled for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

    NP applies to computers with a CTP exceeding 500 Mtops destined for 
a country listed in Country Group D:2. This reason for control does not 
relate directly to a licensing requirement, but rather an additional 
review conducted on all applications by the Bureau of Export 
Administration. Accordingly, no additional column is provided for 
purposes of identifying licensing requirements.
    SC (Supercomputer) controls apply to all destinations except Japan 
for computers with a Composite Theoretical Performance equal to or 
exceeding 1500 Mtops. These controls do not relate directly to a 
licensing requirement, but rather what type of supercomputer support 
documentation (e.g., security plan) is required, conditions that may be 
placed on the license, and the licensing review policy the application 
will be subject to at the Bureau of Export Administration. Accordingly, 
no additional column is provided for purposes of identifying licensing 
requirements. (Reference Sec. 742.12 for information on licensing 
review policies, required support documentation, security conditions 
and plans, and licensing policies.)

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes, except MT and except supercomputers as defined in 
Sec. 742.12 (no supercomputer restrictions for Japan)
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
[[Page 25447]]

4A03  Digital computers, assemblies, and related equipment therefor, as 
described in this entry, and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, CC, AT, NP, SC

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to digital computers used as ancillary equipment for test 
facilities and equipment that are controlled by 9B05 or 9B06--MT Column 
1
CC applies to computers for computerized fingerprint equipment--CC 
Column 1
AT applies to entire entry (refer to 4A94 for controls on computers 
with CTPs greater than 260 Mtops., but less than or equal to 6 Mtops)--
AT Column 1
    NP applies to computers with a CTP exceeding 500 Mtops destined for 
a country listed in Country Group D:2. This reason for control does not 
relate directly to a licensing requirement, but rather an additional 
review conducted on all applications by the Bureau of Export 
Administration. Accordingly, no additional column is provided for 
purposes of identifying licensing requirements.
    SC (Supercomputer) controls apply to all destinations except Japan 
for computers with a Composite Theoretical Performance equal to or 
exceeding 1500 Mtops. These controls do not relate directly to a 
licensing requirement, but rather what type of supercomputer support 
documentation (e.g., security plan) is required, conditions that may be 
placed on the license, and the licensing review policy the application 
will be subject to at the Bureau of Export Administration. Accordingly, 
no additional column is provided for purposes of identifying licensing 
requirements. (Reference Sec. 742.12 for information on licensing 
review policies, required support documentation, security conditions 
and plans, and licensing policies.)

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes, except MT and CC, and except supercomputers as defined in 
Sec. 742.12 (no supercomputer restriction for Japan)
    GBS: Yes, except MT and CC for computers with a CTP not exceeding 
1,000 Mtops (500 Mtops for eligible countries in Country Group D:2 and 
specially designed components therefor, exported separately or as part 
of a system; and related equipment therefor when export with these 
computers as part of a system. (GBS is not available for the export of 
commodities that the exporter knows will be used to: enhance the 
performance capability (i.e., CTP) of a computer to the supercomputer 
level or enhance the performance capability of a supercomputer (See 
Sec. 742.12 for a definition of supercomputer))
    NSG: N/A
    CIV: Yes, except MT and CC for 4A03.d (having a 3-D vector rate 
less that 3M vectors/sec) f, (see Advisory Notes 2, 3 and 8 to Category 
4-Computers)

Special Comprehensive License--(To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4A04  Computers, as follows, and specially designed related equipment, 
assemblies and components therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4A21  Analog computers, digital computers, or digital differential 
analyzers designed or modified for use in missiles not controlled by 
4A01 and having either of the following characteristics: rated for 
continuous operation at temperatures from below -45 deg.C to above 
+55 deg.C; or designed as ruggedized or radiation hardened.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4A80  Computers for fingerprint equipment, n.e.s.

License Requirements

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4A94  Computers, assemblies, and related equipment not controlled by 
4A01, 4A02, or 4A03, and specially designed components therefor.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25448]] 
B. Test, Inspection and Production Equipment


4B94  Equipment for the development and production of magnetic and 
optical storage equipment, as described in this entry.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials


4C94  Materials specially formulated for and required for the 
fabrication of head/disk assemblies for controlled magnetic and 
magneto-optical hard disk drives.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
D. Software
    Note to Category 4D: The control status of software for the 
development, production, or use of equipment described in other 
Categories is dealt with in the appropriate Catergory. The control 
status of software for equipment described in the Category 4 is 
dealt with herein.


4D01  Software specially designed or modified for the development, 
production or use of equipment controlled by 4A01, 4A02, 4A03, or 4A04, 
or software controlled by 4D01, 4D02, or 4D03.

License Requirements

Reason for Control: NS, MT, CC, AT, SC

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software specially designed or modified for the 
development, production or use of equipment controlled for MT reasons 
by 4A01, 4A02, and 4A03--MT Column 1
CC applies to software specially designed or modified for the 
development, production or use of computers for computerized 
fingerprint equipment--CC Column 1
AT applies to entire entry--AT Column 1
    SC (Supercomputer) controls apply to all destinations except Japan 
for software specially designed or modified for the development, 
production, or use of computers with a Composite Theoretical 
Performance equal to or exceeding 1500 Mtops. These controls do not 
relate directly to a licensing requirement, but rather what type of 
supercomputer support documentation (e.g., security plan) is required, 
conditions that may be placed on the license, and the licensing review 
policy the application will be subject to at the Bureau of Export 
Administration. Accordingly, no additional column is provided for 
purposes of identifying licensing requirements. (Reference Sec. 742.12 
for information on licensing review policies, required support 
documentation, security conditions and plans, and licensing policies.)

License Alternatives

License Exceptions

    NSG: N/A
    CIV: Yes, except MT and CC (see Advisory Notes 2 and 3 to Category 
4-Computers)
    TSR: Yes, except MT and CC and except software for supercomputers 
as defined in Sec. 742.12 (no supercomputer restriction for Japan)

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4D02  Software specially designed or modified to support technology 
controlled by 4E01 or 4E02.

License Requirements

Reason for Control: NS, MT, AT, SC

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software specially designed or modified to support 
technology for the development, production or use of equipment 
controlled for MT reasons by 4A01, 4A02, and 4A03--MT Column 1
AT applies to entire entry--AT Column 1
    SC (Supercomputer) controls apply to all destinations except Japan 
for software specially designed or modified to support technology for 
the development, production, or use of computers with a Composite 
Theoretical Performance equal to or exceeding 1500 Mtops. These 
controls do not relate directly to a licensing requirement, but rather 
what type of supercomputer support documentation (e.g., security plan) 
is required, conditions that may be placed on the license, and the 
licensing review policy the application will be subject to at the 
Bureau of Export Administration. Accordingly, no additional column is 
provided for purposes of identifying licensing requirements. (Reference 
Sec. 742.12 for information on licensing review policies, required 
support documentation, security conditions and plans, and licensing 
policies.)

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: Yes, except MT and CC and except software specifically designed or 
modified to support technology for supercomputers as defined in 
Sec. 742.12 (no supercomputer restriction for Japan)

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4D03  Specific software, as described in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1 [[Page 25449]] 

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: Yes, except D03.c

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4D21  Software specially designed or modified for the development, 
production, or use of items controlled by 4A21, or for supporting 
technology controlled by 4E21 for the development, production, or use 
of items controlled by 4A21.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4D80  Software specially designed for the development, production, or 
use of items controlled by 4A80.

License Requirements

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

 * * * * *


4D92  Software specially designed or modified for the development, 
production, or use of equipment controlled by 4B94 and materials 
controlled by 4C94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4D93  Program proof and validation software, software allowing the 
automatic generation of source codes, and operating systems not 
controlled by 4D03 that are specially designed for real time processing 
equipment.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled:

* * * * *


4D94  Software specially designed for the development, production, or 
use of digital computers, assemblies, and related equipment therefor 
controlled by 4A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


4E01  Technology according to the General Technology Note, for the 
development, production or use of equipment controlled by 4A01, 4A02, 
4A03, or 4A04, or software controlled by 4D01, 4D02, or 4D03.

License Requirements

Reason for Control: NS, MT, CC, AT, SC

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology for the development, production or use of 
equipment or software controlled for MT reasons by 4A01, 4A02, 4A03, 
4D01 or 4D02--MT Column 1
CC applies to technology for the development, production or use of 
computers controlled by by 4A03 for CC reasons--CC Column 1
AT applies to entire entry--AT Column 1
    SC (Supercomputer) controls apply to all destinations except Japan 
for technology for the development, production, or use of computers 
with a Composite Theoretical Performance equal to or exceeding 1500 
Mtops. These controls do not relate directly to a licensing 
requirement, but rather what type of supercomputer support 
documentation (e.g., security plan) is required, conditions that may be 
placed on the license, and the licensing review policy the application 
will be subject to at the Bureau of Export Administration. Accordingly, 
no additional column is provided for purposes of identifying licensing 
requirements. (Reference Sec. 742.12 for information on licensing 
review policies, required support documentation, security conditions 
and plans, and licensing policies.)

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes, except MT and CC and except technology for supercomputers 
as defined in 742.12 (no supercomputer restriction for Japan)

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25450]] 


4E02  Other technology.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4E21  Technology for the development, production, or use of items 
controlled by 4A21.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4E80  Technology for the development, production, or use of items 
controlled by 4A80.

License Requirements

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4E92  Technology for the development, production, or use of equipment 
controlled by 4B94, materials controlled by 4C94, or software 
controlled by 4D92, 4D93, or 4D94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4E93  Technology for the development or production of graphics 
accelerators or equipment designed for multi-data-stream processing and 
technology required for the development or production of magnetic hard 
disk drives.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


4E94  Technology for the development, production, or use of digital 
computers, assemblies and related equipment therefor controlled by 
4A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 5--Telecommunications and Information Security

    Notice: Category 5 entries are divided into three sections. (I) 
Telecommunication entries; (II) Information Security entries; and 
(III) Other Equipment, Materials and Software and Technology 
entries.

I. Telecommunications

A. Equipment, Assemblies and Components


5A01  Any type of telecommunications equipment having any of the 
following characteristics, functions or features.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A02  Telecommunication transmission equipment or systems and specially 
designed components and accessories therefor, having any of the 
characteristics, functions or features described in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry-- AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes, except 5A02.h and i
    NSG: N/A
    CIV: Yes, except 5A02.h and i [[Page 25451]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A03  Stored program controlled switching equipment and related 
signalling systems having any of the characteristics, functions or 
features described in this entry, and specially designed components and 
accessories therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A04  Centralized network controls having the characteristics described 
in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A05  Optical fiber communication cables and optical fibers.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: Yes
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A06  Phased array antennas, operating above 10.5GHz containing active 
elements and distributed components, and designed to permit electronic 
control of beam shaping and pointing, except for landing systems with 
instruments meeting ICAO standards (microwave landing systems (MLS)).

License Requirements

Reason For Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


5B01  Equipment, and Specially designed components and accessories 
therefor, Specially designed for the development, production, or use of 
equipment, materials, or functions controlled by the entries in the 
telecommunications sections of Category 5 for national security 
reasons.

License Requirements

Reason For Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5B02  Other equipment.

License Requirements

Reason For Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials


5C01  Preforms of glass or of any other material optimized for the 
manufacture of optical fibers controlled by 5A05.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: Yes
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25452]] 
D. Software


5D01  Software specially designed or modified for the development, 
production or use of equipment or materials controlled by the 
telecommunications entries 5A01, 5A02, 5A03, 5A04, 5A05, 5A06, 5B01, 
5B02, or 5C01.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: Yes
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D02  Software specially designed or modified to support technology 
controlled by telecommunications entries 5E01 and 5E02.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: Yes
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D03  Specific Software as described in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: Yes
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


5E01  Technology according to the General Technology Note for the 
development, production or use (excluding operation) of equipment, 
systems, materials or software controlled by the telecommunications 
entries in 5A, 5B, 5C, or 5D.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5E02  Specific technologies as described in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry-- NS Column 1
AT applies to entire entry-- AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes, except Iran and Syria

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

II. Information Security

A. Equipment, Assemblies and Components


5A11  Systems, equipment, application specific ``assemblies'', modules 
or integrated circuits for ``information security'' as listed, and 
specially designed components therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: Yes for Advisory Note 4 to Category 5--Information Security
    NSG: N/A
    CIV: Yes for Advisory Notes 4 and 5 to Category 5--Information 
Security

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


5B11  Equipment specially designed for the development of equipment or 
functions controlled by the information security entries in this 
category, including measuring or test equipment.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25453]] 


5B12  Equipment designed for the production of equipment or functions 
controlled by the information security entries in this category, 
including measuring, test, repair or production equipment.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5B13  Measuring equipment specially designed to evaluate and validate 
the information security functions controlled by the information 
security entries in 5A or 5D.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials
[Reserved]
D. Software


5D11:  Software specially designed or modified for the development, 
production or use of equipment controlled by Information Security 
entries 5A11, 5B11, 5B12 or 5B13 or software controlled by Information 
Security entries 5D11, 5D12, or 5D13.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: Yes for Advisory Note 5 to Category 5--Information Security
    TSR: Yes for Advisory Note 5 to Category 5--Information Security

Special Comprehensive License: (To Be determined in final rule)

List of Items Controlled

* * * * *


5D12  Software specially designed or modified to support technology 
controlled by the information security entry 5E11.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D13  Specific software as follows:

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes for software described in Advisory Note 5--Information 
Security, provided that the software is not controlled by the Office of 
Defense Trade Controls, Department of State

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


5E11  Technology according to the General Technology Note for the 
development, production or use of equipment controlled by information 
security entries 5A11, 5B11, 5B12, or 5B13 or software controlled by 
information security entries 5D11, 5D12, or 5D13.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

III. Other Equipment, Materials, ``Software'', and Technology

A. Equipment, Assemblies and Components


5A20  Telemetering and telecontrol equipment usable as launch support 
equipment for unmanned air vehicles or rocket system.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A [[Page 25454]] 
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A80  Communications intercepting devices; and parts and accessories 
therefor.

License Requirements

Reason for Control

    Controls on equipment described in this entry are maintained in 
accordance with the Omnibus Crime Control and Safe Streets Act of 1968 
(Public Law 90-351). A license is required for ALL destinations, 
regardless of end use. Accordingly, a column specific to this control 
does not appear on the Commerce Country Chart.

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A90  Any type of telecommunications equipment, not controlled by 5A01, 
specially desinged to operate outside the temperature range from 219D 
(-54 deg.C) to 397K (124 deg.C).

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A91  Transmission equipment, not controlled by 5A02, containing:

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A92  Mobile communications equipment, n.e.s., and assemblies and 
components therefor.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A93  Radio relay communications equipment designed for use at 
frequencies equal to or exceeding 19.7 GHz and assemblies and 
components therefor, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A94  Data (message) switching equipment or systems designed for 
packet-mode operation and assemblies and components therefor, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5A95  Information security equipment, n.e.s.; (e.g., cryptographic, 
cryptoanalytic, and cryptologic equipment, n.e.s.), and components 
therefor.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


5B94  Telecommunications test equipment, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1 [[Page 25455]] 

License Alternatives

License Exceptions

    LVS: $1,000 for Syria; N/A to Iran
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials
    [Reserved]
D. Software


5D20  Software designed or modified for the development, production or 
use of items controlled by 5A20.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D90  Software specially designed or modified for the development, 
production, or use of equipment controlled by 5A90 and 5A91.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D91  Software specially designed or modified for the development, 
production, or use of telecommunications test equipment controlled by 
5B94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D92  Software specially designed or modified for the development, 
production or use of mobile communications equipment controlled by 
5A92.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D93  Software specially designed or modified for the development, 
production or use of radio relay communication equipment controlled by 
5A93.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D94  Software specially designed or modified for the development, 
production or use of data (message) switching equipment controlled by 
5A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5D95  Software, n.e.s., specially designed or modified for the 
development, production, or use of information security or cryptologic 
equipment (e.g., equipment controlled by 5A95).

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


5E20  Technology for the development, production or use of equipment or 
software controlled by 5A20 or 5D20.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A [[Page 25456]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5E90  Technology for the development, production or use of equipment 
controlled by 5A90 or 5A91 or software controlled by 5D90.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5E91  Technology for the development, production, or use of 
telecommunications test equipment controlled by 5B94, or software 
controlled by 5D91.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5E92  Technology for the development, production, or use of mobile 
communications equipment controlled by 5A92 or software controlled by 
5D92.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5E93  Technology for the development, production, or use of radio relay 
communication equipment controlled by 5A93, or software controlled by 
5D93.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5E94  Technology for the development, production or use of data 
(message) switching equipment controlled by 5A94, or software 
controlled by 5D94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


5E95  Technology, n.e.s., for the development, production, or use of 
information security or cryptologic equipment (e.g., equipment 
controlled by 5A95), or software controlled by 5D95.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 6--Sensors

A. Equipment, Assemblies and Components


6A01  Acoustics.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: Yes for 6A01.a.1.b.4 (see Advisory Note 1.2 to Category 6--
Sensors)
    NSG: N/A
    CIV: Yes for 6A01.b

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A02  Optical Sensors.

License Requirements

Reason for Control: NS, MT, CC, RS, AT, UN

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to optical detectors in 6A02.a.1, a.3, and a.4 that are 
specially designed or rated as electromagnetic (including ``lasers'') 
and ionized-particle radiation resistant--MT Column 1
RS applies to 6A02.a.1, a.2, a.3 and .c--RS Column 1
CC applies to police-model infrared viewers in 6A02.c--CC Column 1
AT applies to entire entry--AT Column 1
UN applies to 6A02.a.1, a.2, a.3 and c--UN Column 1

License Alternatives

License Exceptions

    LVS: $3000, except N/A for 6A02.a.1, a.2, a.3, and c
    CSR: Yes, except MT, RS, and CC
    GBS: N/A
    NSG: N/A [[Page 25457]] 
    CIV: Yes, except MT, RS and CC for 6A02a.4 and items in Advisory 
Notes 2.2 and 2.3 to Category 6--Sensors

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A03  Cameras.

License Requirements

Reason for Control NS, NP, RS, AT, UN

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to items controlled in paragraphs 6A03.a.2, a.3, a.4, a.5 
and b.1--NP Column 1
RS applies to items controlled in 6A03.b.3 and b.4--RS Column 1
AT applies to entire entry--AT Column 1
UN applies to items controlled in 6A03.b.3 and b.4--UN Column 1

License Alternatives

License Exceptions

    LVS: $1500, except N/A for 6A03.a.2 through a.5, b.1, b.3 and b.4
    CSR: Yes, except NP and RS
    GBS: N/A
    NSG: Yes, except Bulgaria, Romania, or Russia, for NP only
    CIV: Yes for 6A03a.1 and items in Advisory Note 3.2 to Category 6--
Sensors

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A04  Optics.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: Yes for 6A04a.1, a.2, a.4, b, d.1.a, e.2 and e.4 (see Advisory 
Note 4.2 to Category 6--Sensors)
    NSG: N/A
    CIV: Yes for 6A04.f and items in Advisory Note 4.2 to Category 6--
Sensors

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A05  Lasers, components and optical equipment, as follows.

License Requirements

Reason for Control: NS, NP, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
NP applies to 6A05.a.1.c, a.2.a, a.4.c, a.6 (argon lasers only), a.7.b, 
c.1.b, c.2.c.2, c.2.c.3, c.2.d.2, and d.2.c--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A for NP items; $3000 for all other items
    CSR: Yes, except NP
    GBS: Yes, except NP, for items in Advisory Notes 5.3 and .4 to 
Category 6--Sensors
    NSG: Yes, except Bulgaria, Romania, or Russia, for NP only
    CIV: Yes, except NP for 6A05.c.2.a, d, e and for items in Advisory 
Notes [5.2], 5.3 and 5.4 to Category 6--Sensors

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A06  Magnetometers, magnetic gradiometers, intrinsic magnetic 
gradiometers and compensation systems and specially designed 
components.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A07  Gravity meters (gravimeters) and gravity gradiometers.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to 6A07.b and c when the characteristics of 6A07.b are 
exceeded--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes, except MT
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A08  Radar systems, equipment and assemblies having any of the 
following characteristics, and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to items that are designed for airborne applications and 
that are usable in systems controlled for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes, except MT
    GBS: N/A
    NSG: N/A
    CIV: Yes, except MT for 6A08.b, c, and l.1

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25458]] 


6A18  Magnetic, pressure, and acoustic underwater detection devices 
specially designed for military purposes and controls and components 
therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A22  Photosensitive components not controlled by ECCN 6A02

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A28  Radar and laser radar systems (including altimeters), and 
specially designed components for airborne applications.

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A29  Precision tracking systems.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A30  Integrated electronic systems specially designed for radar cross 
section measurement.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A43  Cameras and components not controlled by ECCN 6A03.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions:

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A44  Photomultiplier tubes.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A50  Lasers, laser amplifiers, and oscillators.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: Yes
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25459]] 


6A90  Airborne radar equipment, n.e.s., and specially designed 
components therefor.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A92  Gravity meters (gravimeters) not controlled by 6A07.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A93  ``Magnetometers'' having a ``noise level'' (sensitivity) lower 
(better) than 1.0 nT rms per square root Hz, but no lower than 0.05 nT 
rms per square root Hz.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6A94  Marine or terrestrial acoustic equipment, n.e.s., capable of 
detecting or locating underwater objects or features or positioning 
surface vessels or underwater vehicles; and specially designed 
components, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


6B04  Optics.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5,000
    CSR: Yes
    GBS: Yes for Advisory Note 4.3 to Category 6-Sensors
    NSG: N/A
    CIV: Yes for Advisory Note 4.3 to Category 6-Sensors

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6B05  Lasers.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5,000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6B07  Gravimeters.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6B08:  Radar.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions:

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25460]] 
C. Materials


6C02  Optical sensors.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: Yes for 6C02.c

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6C04  Optics.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500
    CSR: Yes
    GBS: Yes for Advisory Note 4.2 to Category 6-Sensors
    NSG: N/A
    CIV: Yes for 6C04.h and Advisory Note 4.2 to Category 6--Sensors

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6C05  Lasers.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1500
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
D. Software


6D01  Software specially designed for the development or production of 
equipment controlled by 6A04, 6A05, 6A08, or 6B08.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and County Chart
NS applies to entire entry--NS Column 1
MT applies to software for the development or production of equipment 
controlled by 6A08 that is designed for airborne applications and that 
are usable in systems controlled for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions:

    NSG: N/A
    CIV: N/A
    TSR: Yes, except MT

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D02  Software specially designed for the use of equipment controlled 
by 6A02.b, 6A08, or 6B08.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and County Chart
NS applies to entire entry--NS Column 1
MT applies to software forthe use of equipment controlled by 6A08 that 
is designed for airborne applications and that are usable in systems 
controlled for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions:

    NSG: N/A
    CIV: N/A
    TSR: Yes, except MT

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D03  Other software, as follows.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
    NS applies to entire entry--NS Column 1
    AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: Yes for 6D03.d.1 and Advisory Note 8.2 to Category 6--Sensors
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D21  Software specially designed for the development or production of 
equipment controlled by 6A02.a.1, a.2, a.3, a.4, c, 6A03.b.3, b.4, 
6A22, 6A07.b and .c, 6A28 or 6A30.

License Requirements

Reason for Control: MT, RS, AT, UN

Control(s) and Country Chart
MT applies to software for the development or production of equipment 
controlled by 6A02.a.1, a.3, and a.4, 6A07.b and c, 6A22, 6A28, or 
6A30--MT Column 1
RS applies to software for the development or production of equipment 
controlled by 6A02.a.1, a.2, a.3, c, 6A03.b.3 and b.4--RS Column 1
AT applies to entire entry--AT Column 1
UN applies to software for the development or production of equipment 
controlled by 6A02.a.1, a.2, a.3, c, 6A03.b.3 and b.4--UN Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25461]] 


6D22  Software specially designed for the use of equipment controlled 
by 6A02.a.1, a.3, and a.4, 6A22, 6A07.b and .c, 6A28, or 6A30.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D29  Software for the development, production, or use of commodities 
described in 6A29, including software that processes post-flight 
recorded data enabling determination of vehicle position throughout its 
flight path.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D90  Software specially designed for the development, production, or 
use of airborne radar equipment controlled by 6A90.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Atlernatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D92  Software specially designed for the development, production, or 
use of gravity meters (gravimeters) controlled by 6A92.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D93  Software specially designed for the development, production, or 
use of magnetometers controlled by 6A93.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6D94  Software specially designed for the development, production, or 
use of marine or terrestrial acoustic equipment controlled by 6A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


6E01  Technology according to the General Technology Note for the 
development of equipment, materials or software controlled by 6A01, 
6A02, 6A03, 6A04, 6A05, 6A06, 6A07, 6A08, 6B04, 6B05, 6B07, 6B08, 6C02, 
6C04, 6C05, 6D01, 6D02, or 6D03.

License Requirements

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

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology for the development of equipment controlled by 
6A02.a.1, a.3, or a.4, 6A07.b or .c, or 6A08 (only when the equipment 
is designed for airborne applications and that are usable in systems 
controlled for MT reasons--MT Column 1
NP applies to technology for the development of equipment controlled by 
6A03.a.2, a.3, a.4, a.5, or b.1, or 6A05.a.1.c, a.2.a, a.4.c, a.6 
(argon ion lasers only), a.7.b, c.1.b, c.2.c.2, c.2.c.3, c.2.d.2, or 
d.2.c.--NP Column 1
RS applies to technology for the development of items controlled by 
6A02.a.1, a.2, a.3, or .c, and 6A03.b.3 and b.4--RS Column 1
AT applies to entire entry--AT Column 1
CC applies to technology for the development of police-model infrared 
viewers controlled by 6A02.c--CC Column 1
UN applies to technology for the development of items controlled by 
6A02.a.1, a.2, a.3, or .c, and 6A03.b.3 and b.4--UN Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia, for NP only
    CIV: N/A
    TSR: Yes, except MT, NP, RS, AT, CC, UN

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25462]] 


6E02  Technology according to the General Technology Note for the 
production of equipment or materials controlled by 6A01, 6A02, 6A03, 
6A04, 6A05, 6A06, 6A07, 6A08, 6B04, 6B05, 6B07, 6B08, 6C02, 6C04, or 
6C05.

License Requirements

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

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology for the production of equipment controlled by 
6A02.a.1, a.3, or a.4, 6A07.b or .c, or 6A08 when the equipment is 
designed for airborne applications that are usable in systems 
controlled for MT reasons--MT Column 1
NP applies to technology for the production of equipment controlled by 
6A03.a.2, a.3, a.4, a.5, or b.1, or 6A05.a.1.c, a.2.a, a.4.c, a.6 
(argon ion lasers only), a.7.b, c.1.b, c.2.c.2, c.2.c.3, c.2.d.2, or 
d.2.c.--NP Column 1
RS applies to technology for the production of items controlled by 
6A02.a.1, a.2, a.3, or .c--RS Column 1
AT applies to entire entry--AT Column 1
CC applies to technology for the production of police-model infrared 
viewers controlled by 6A02.c--CC Column 1
UN applies to technology for the development of items controlled by 
6A02.a.1, a.2, a.3, or c and 6A03.b.3 or b.4--UN Column 1

License Alternatives

License Exceptions

    NSG: Yes, except Bulgaria, Romania, or Russia, for NP only
    CIV: N/A
    TSR: Yes, except MT, NP, RS, AT, CC, UN

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E03  Other technology.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E21  Technology for the development of equipment controlled by 6A22, 
6A28, 6A29, or 6A30.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E22  Technology for the production of equipment controlled by 6A22, 
6A28, 6A29, or 6A30.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E23  Technology for the use of equipment controlled by 6A02.a.1, a.3, 
and a.4, 6A22, 6A07.b and .c, 6A08, 6A28, 6A29, or 6A30.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to technology for use of items controlled by 6A02.a.1, a.3, 
and a.4, 6A22, 6A07.b and .c, 6A28, 6A29, 6A30, or items controlled by 
6A08 when the equipment is designed for airborne applications that are 
usable in systems controlled for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E40  Technology for the use of equipment controlled by 6A03.a.2, a.3, 
a.4, a.5, or b.1 or 6A05.a.1.c, a.2.a, a.4.c, a.6 (argon ion lasers 
only), a.7.b, c.1.b, c.2.c.2, c.2.c.3, c.2.d.2, or d.2.c.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E41  Technology for the development, production, or use of equipment 
controlled by 6A43, 6A44, or 6A50.

License Requirements

Reason for Control: NP, AT

Control(s) and Country Chart
NP applies to entire entry--NP Column 1
AT applies to entire entry--AT Column 1 [[Page 25463]] 

License Alternatives

License Exceptions

    NSG: Yes
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E90  Technology for the development, production, or use of airborne 
radar equipment controlled by 6A90.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E92  Technology for the development, production, or use of gravity 
meters (gravimeters) controlled by 6A92.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled


6E93  Technology for the development, production, or use of 
magnetometers controlled by 6A93.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: To Be Determined in Final Rule)

List of Items Controlled

* * * * *


6E94  Technology for the development, production, or use of marine or 
terrestrial acoustic equipment controlled by 6A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 7--Navigation and Avionics

A. Equipment, Assemblies, and Components


7A01  Accelerometers designed for use in inertial navigation or 
guidance systems and having any of the following characteristics, and 
specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry except accelerometers that are specially 
designed and developed as Measurement While Drilling (MWD) Sensors for 
use in downhole well service applications--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A02  Gyros having any of the following characteristics, and specially 
designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A03  Inertial navigation systems and inertial equipment for aircraft 
and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A04  Gyro-astro compasses, and other devices that derive position or 
orientation by means of automatically tracking celestial bodies or 
satellites, with an azimuth accuracy of equal to or less (better) than 
5 seconds of arc; and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1 [[Page 25464]] 
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A06  Airborne altimeters operating at frequencies other than 4.2 to 
4.4 GHz inclusive and specially designed components therefor, having 
either of the following characteristics.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A21  Accelerometers, designed for use in inertial navigation systems 
or in guidance systems of all types, having the characteristics of 
either 7A21.a or 7A21.b; and specially designed components therefor.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry except accelerometers that are specially 
designed and developed as Measurement While Drilling (MWD) Sensors for 
use in downhole well service applications--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A22:  Gyros of all types, with a rated drift rate stability of less 
than 0.5 deg. (1 sigma or rms) per hour in a 1 g environment; and 
specially designed components therefor.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A23  Inertial or other equipment using accelerometers or gyros 
described in 7A21 or 7A22, and systems incorporating such equipment; 
and specially designed components therefor.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A24  Other gyro-astro compasses and other devices, and specially 
designed components therefor.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A26  Avionics equipment and components usable in missile systems.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A27  Airborne passive sensors for determining bearing to specific 
electromagnetic sources (direction finding equipment) or terrain 
characteristics.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A [[Page 25465]] 
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7A94  Other navigation direction finding equipment, airborne 
communication equipment, all aircraft inertial navigation systems, and 
other avionic equipment, including parts and components, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


7B01  Test, calibration or alignment equipment specially designed for 
equipment controlled by 7A, for national security reasons except 
equipment for Maintenance Level I or Maintenance Level II.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7B02  Equipment, as follows, specially designed to characterize mirrors 
for ring laser gyros.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7B03  Equipment specially designed for the production of equipment 
controlled by 7A for national security reasons, and specially designed 
components therefor, including:

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7B22  Reflectometers and specially designed test, calibration, and 
alignment equipment and production equipment and specially designed 
components therefor, for the production of items controlled by 7A or 7B 
for national security or missile technology reasons and specially 
designed components therefor.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7B94  Other equipment for the test, inspection, or production of 
navigation and avionics equipment.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials
    [Reserved]
D. Software


7D01  Software specially designed or modified for the development or 
production of equipment controlled by 7A or 7B for national security 
reasons.

License Requirements

Reason for Control: NS, MT, RS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1 [[Page 25466]] 
MT applies to entire entry--MT Column 1
RS applies to software for the development or production of inertial 
navigation systems inertial equipment, and specially designed 
components therefor, for civil aircraft--RS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7D02  Source code for the use of any inertial navigation equipment or 
Attitude Heading Reference Systems (AHRS) (except gimballed AHRS) 
including inertial equipment not controlled by 7A03 or 7A04.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7D03  Other software, as follows.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart

NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7D24  Software specially designed for the development, production, or 
use of commodities controlled by 7A21, 7A22, 7A23, 7A24, 7A25, 7A26, 
and 7A27, 7B01, 7B02, 7B03, and 7B22 for missile technology reasons.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart

MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7D94  Software, n.e.s., for the development, production, or use of 
navigation, airborne communication and other avionics.

License Requirements

Reason for Control: AT

Control(s) and Country Chart

AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


7E01  Technology according to the General Technology Note for the 
development of equipment or software controlled by 7A, 7B, or 7D for 
national security reasons.

License Requirements

Reason for Control: NS, MT, RS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
RS applies to technology for the development of inertial navigation 
systems, inertial equipment and specially designed components therefor, 
for civil aircraft--RS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7E02  Technology according to the General Technology Note GTN for the 
production of equipment controlled by 7A or 7B for national security 
reasons.

License Requirements

Reason for Control: NS, MT, RS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
RS applies to technology for the production of inertial navigation 
systems, inertial equipment and specially designed components therefor, 
for civil aircraft--RS Column 1.
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled:

* * * * *


7E03  Technology according to the General Technology Note (GTN) for the 
repair, refurbishing or overhaul of equipment controlled by 7A01 to 
7A04, except for maintenance technology directly associated with 
calibration, removal or replacement of damaged or unserviceable line 
replaceable units (LRU) and shop replaceable units (SRA) of a civil 
aircraft as described in Maintenance Level I or Maintenance Level II.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1 [[Page 25467]] 
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7E04   Other technology.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7E21   Other technology for the development, production or use of 
equipment or software controlled by 7A, 7B, or 7D controlled for 
national security or missile technology reasons.

License Requirements

Reason for Control: MT, RS, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
RS applies to development--RS Column 1 or production of inertial 
navigation systems, inertial equipment and specially designed 
components therefor, for civil aircraft--RS Column 1.
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7E22  Design technology for protection of avionics and electrical 
subsystems against electromagnetic pulse (EMP) and electromagnetic 
interference (EMI) hazards from external sources.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


7E94   Technology, n.e.s., for the development, production, or use of 
navigation, airborne communication, and other avionics equipment.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 8--Marine Technology

A. Equipment, Assemblies and Components


8A01  Submersible vehicles or surface vessels.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8A02  Systems or equipment.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes for 8A02.i.2 (see Advisory Note 2 to Category 8--Marine 
Technology)
    NSG: N/A
    CIV: Yes for 8A02.e.2 and Advisory Note 2 to Category 8--Marine 
Technology

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8A18  Commodities on the International Munitions List.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25468]] 


8A92  Other underwater camera equipment, n.e.s., other submersible 
systems, n.e.s.; and specially designed parts therefor.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8A93  Self-contained underwater breathing apparatus (scuba gear) and 
related equipment.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8A94  Boats, n.e.s., including inflatable boats, marine engines (both 
inboard and outboard) and submarine engines, n.e.s; and specially 
designed parts therefor, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


8B01  Water tunnels, having a background noise of less than 100 dB 
(reference 1 microPascal, 1 Hz) in the frequency range from 0 to 500 
Hz, designed for measuring acoustic fields generated by a hydro-flow 
around propulsion system models.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials


8C01  Syntactic foam for underwater use.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
D. Software


8D01:  Software specially designed or modified for the development, 
production or use of equipment or materials controlled by 8A01, 8A02, 
8A18, 8B01, or 8C01.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8D02  Specific software specially designed or modified for the 
development, production, repair, overhaul or refurbishing (re-
machining) of propellers specially designed for underwater noise 
reduction.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8D92  Software specially designed or modified for the development, 
production or use of commodities controlled by 8A92.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A [[Page 25469]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8D93  Software specially designed or modified for the development, 
production or use of commodities controlled by 8A93 and 8A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


8E01  Technology according to the General Technology Note for the 
development or production of equipment or materials controlled by 8A01, 
8A02, 8A18, 8B01, or 8C01.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8E02  Other technology

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8E92  Technology for the development, production or use of commodities 
controlled by 8A92.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


8E93  Technology for the development, production or use of commodities 
controlled by 8A93 and 8A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 9--Propulsion Systems and Transportation Equipment

A. Equipment, Assemblies and Components


9A01  Aero gas turbine engines incorporating any of the technologies 
controlled by 9E03.a and described in this entry.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A02  Marine gas turbine engines with an ISO standard continuous power 
rating of 24,245 kW or more and a specific fuel consumption of less 
than 0.219 kg/kW-hr at any point in the power range from 35 to 100 
percent, and specially designed assemblies and components therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: Yes for Advisory Note 2 to Category 9--Propulsion Systems and 
Transportation Equipment
    NSG: N/A
    CIV: Yes for Advisory Note 2 to Category 9--Propulsion Systems and 
Transportation Equipment

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25470]] 


9A03  Specially designed assemblies and components, incorporating any 
of the technologies controlled by 9E03.a for gas turbine engine 
propulsion systems.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A04  Spacecraft (not including their payloads) and specially designed 
components therefor.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A18  Commodities on the International Munitions List.

License Requirements

Reason for Control: NS, RS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
RS applies to 9A18.a and b--RS Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

LVS: $1500
CSR: N/A
GBS: N/A
NSG: N/A
CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A21  Gas turbine aero engines not controlled by 9A01, uncertified or 
certified, having both a maximum thrust value greater than 1000N 
(achieved un-installed), excluding civil certified engines with a 
maximum thrust value greater than 8,890N (achieved un-installed), and 
specific fuel consumption of 0.13kg/N/hr or less (at sea level static 
and standard conditions).

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A22  Vehicles designed or modified for transport or handling of 
missile systems.

License Requirements

Reason for Control: MT, UN, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
UN applies to entire entry--UN Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A23  Liquid or slurry propellant control systems, pumps and servo 
valves therefor, and specially designed components therefor.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $1000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A24  Non-military unmanned air vehicle systems (UAVs) and remotely 
piloted vehicles (RPVs) that are capable of a maximum range of at least 
300 kilometers (km), regardless of payload.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A80  Nonmilitary mobile crime science laboratories; and parts and 
accessories, n.e.s.

License Requirements

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

    LVS: N/A [[Page 25471]] 
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A90  Diesel engines, n.e.s., for trucks, tractors, and automotive 
applications of continuous brake horsepower of 400 BHP (298 kW) or 
greater (performance based on SAE J1349 standard conditions of 100 kPa 
and 25 deg.); pressurized aircraft breathing equipment, n.e.s.; and 
specially designed parts therefor, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A91  Other aircraft and certain gas turbine engines.

License Requirements

Reason for Control: AT, UN

Control(s) and Country Chart
AT applies to entire entry--AT Column 1
UN applies to 9A91.a--UN Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A92  Off highway wheel tractors of carriage capacity at (10 tons) or 
more; and parts and accessories, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A93  On-Highway tractors, with single or tandem rear axles rated for 
9t (20,000 lbs.) or greater and specially designed parts.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9A94  Aircraft parts and components, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment


9B01  Specially designed equipment, tooling or fixtures, as follows, 
for manufacturing or measuring gas turbine blades, vanes or tip shroud 
castings.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to equipment for test, inspection and production of small 
lightweight turbine engines described in 9A21--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes, except MT
    GBS: N/A
    NSG: N/A
    CIV: Yes, except MT for 9B01.a, b, f and h

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B02  On-line (real time) control systems, instrumentation (including 
sensors) or automated data acquisition and processing equipment, 
specially designed for the development of gas turbine engines, 
assemblies or components incorporating technologies controlled by 
9E03.a.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A [[Page 25472]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B03  Equipment specially designed for the production or test of gas 
turbine brush seals designed to operate at tip speeds exceeding 335 m/
s, and specially designed parts or accessories.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B04  Tools, dies or fixtures for the solid state joining of gas 
turbine superalloy or titanium components.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B05  On-line (real-time) control systems, instrumentation (including 
sensors) or automated data acquisition and processing equipment, 
specially designed for use with wind tunnels or devices.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B06  Specially designed acoustic vibration test equipment capable of 
producing sound pressure levels of 160 dB or more, (reference to 20 
micropascals) with a rated output of 4 kW or more at a test cell 
temperature exceeding 1273 K (1000 deg.C), and specially designed 
transducers, strain gauges, accelerometers, thermocouples or quartz 
heaters therefor.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to vibration test equipment only--MT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: Yes, except MT
    GBS: N/A
    NSG: N/A
    CIV: Yes, except MT

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B07  Equipment specially designed for inspecting the integrity of 
rocket motors using non-destructive test (NDT) techniques other than 
planar X-ray or basic physical or chemical analysis.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B08  Transducers specially designed for the direct measurement of the 
wall skin friction of the test flow with a stagnation temperature 
exceeding 833k (560  deg.C)

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B09  Tooling specially designed for producing turbine engine powder 
metallurgy rotor components capable of operating at stress levels of 
60% of ultimate tensile strength (UTS) or more and metal temperatures 
of 873 k (600  deg.C) or more.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1 [[Page 25473]] 
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: Yes
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B21  Specially designed production facilities and production equipment 
for the systems, sub-systems, and components in ``missile'' systems.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B25  Wind tunnels for speeds of Mach 0.9 or more related control 
systems, instrumentation (including sensors) or automated data 
acquisition and processing equipment.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B26  Other vibration test equipment, as follows.

License Requirements

Reason for Control: MT, NP, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
NP applies to 9B26.a--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $3000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B27  Test benches or stands that have the capacity to handle solid or 
liquid propellant rockets or rocket motors of more than 90 KN (20,000 
lbs.) of thrust, or that are capable of simultaneously measuring the 
three axial thrust components.

License Requirements

Reason for Control: MT, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9B94  Vibration test equipment and specially designed parts and 
components, n.e.s.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
C. Materials
[Reserved]
D. Software


9D01  Software required for the development of equipment controlled by 
9A01, 9A02, 9A03, 9B01, 9B02, 9B03, 9B04, 9B05, 9B06, 9B07, 9B08, or 
9B09, or technology controlled by 9E03.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software required for the development of items controlled 
by 9B02, 9B03, 9B04, 9B06, 9B07, and equipment for test, inspection and 
production of items controlled by 9A21 for for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
[[Page 25474]]

9D02  Software required for the production of equipment controlled by 
9A01, 9A02, 9A03, 9B01, 9B02, 9B03, 9B04, 9B05, 9B06, 9B07, 9B08 or 
9B09.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software required for the production of items controlled 
by 9B02, 9B03, 9B04, 9B06, 9B07, and equipment for test, inspection and 
production of items controlled by 9A21 for for MT reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9D03  Software required for the use of full authority digital 
electronic engine controls (FADEC) for propulsion systems controlled by 
9A01, 9A02 or 9A03, or equipment controlled by 9B01, 9B02, 9B03, 9B04, 
9B05, 9B06, 9B07, 9B08 or 9B09.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to software required for the use of FADEC for gas turbine 
aero engines controlled by 9B21--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9D04  Other software.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to entire entry--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9D18  Software for the development, production, or use of equipment 
controlled by 9A18.

License Requirements

Reason for Control: NS, RS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
RS applies to 9A18.a and b--RS Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes for Australia, Japan, New Zealand, and NATO only

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9D24  Software specially designed or modified for the development, 
production, or use of propulsion systems and equipment controlled by 
9A21, 9A22, 9A23, 9A24, 9B21, 9B25, 9B26, or 9B27, and software, 
n.e.s., specially designed or modified for use of equipment controlled 
by 9B01, 9B02, 9B03, 9B04, 9B06, or 9B07.

License Requirements

Reason for Control: MT, NP, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
NP applies to software for the development, production or use of 
vibration test equipment and feedback or closed loop test equipment 
controlled by 9B26.a--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9D90  Software, n.e.s., for the development or production of diesel 
engines and pressurized aircraft breathing equipment controlled by 
9A90.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9D91  Software, n.e.s., for the development or production of aircraft 
and aero gas turbine engines controlled by 9A91 or aircraft parts and 
components controlled by 9A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25475]] 


9D93  Software for the production or development of off-highway wheel 
tractors controlled by 9A92 or on-highway tractors controlled by 9A93.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9D94  Software for the development, production, or use of equipment 
controlled by 9B94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *
E. Technology


9E01  Technology according to the General Technology Note for the 
development of equipment controlled by 9A01.c, 9B01, 9B02, 9B03, 9B04, 
9B05, 9B06, 9B07, 9B08, or 9B09 or software controlled by 9D01, 9D02, 
9D03, or 9D04.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology according to the General Technology Note for 
the development of equipment controlled by 9B02, 9B03, 9B04, 9B06, and 
9B07, and software controlled by 9D01, 9D02, 9D03, and 9D04 for MT 
reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9E02  Technology according to the General Technology Note for the 
production of equipment controlled by 9A01.c or 9B01, 9B02, 9B03, 9B04, 
9B05, 9B06, 9B07, 9B08, or 9B09.

License Requirements

Reason for Control: NS, MT, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
MT applies to technology according to the General Technology Note for 
the development of equipment controlled by 9B02, 9B03, 9B04, 9B06, and 
9B07, and software controlled by 9D01, 9D02, 9D03, and 9D04 for MT 
reasons--MT Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

NSG: N/A
CIV: N/A
TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9E03  Other technology, as follows:

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9E18  Technology for the development, production, or use of equipment 
controlled by 9A18.

License Requirements

Reason for Control: NS, RS, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
RS applies to 9A18.a and b--RS Column 2
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes for Australia, Japan, New Zealand, and NATO only

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9E21  Technology for the development, production or use of equipment 
controlled by 9A21, 9A22, 9A23, 9A24, 9B21, 9B25, 9B26, or 9B27, or 
software controlled by 9D24, and technology for the use of equipment 
controlled by 9B01, 9B02, 9B03, 9B04, 9B06, or 9B07.

License Requirements

Reason for Control: MT, NP, AT

Control(s) and Country Chart
MT applies to entire entry--MT Column 1
NP applies to technology for the development, production, or use of 
vibration test equipment and feedback or closed loop test equipment 
controlled by 9B26.a.--NP Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * * [[Page 25476]] 


9E90  Technology, n.e.s., for the development, production, or use of 
diesel engines and pressurized aircraft breathing equipment controlled 
by 9A90.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 2

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9E91  Technology, n.e.s., for the development, production, or use of 
aircraft and aero gas turbine engines controlled by 9A91 or aircraft 
parts and components controlled by 9A94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9E93  Technology for the development, production, or use of off-highway 
wheel tractors controlled by 9A92 or on-highway tractors controlled by 
9A93.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


9E94  Technology for development, production, or use of vibration test 
equipment controlled by 9B94.

License Requirements

Reason for Control: AT

Control(s) and Country Chart
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Category 0--Miscellaneous

A. Equipment, Assemblies and Components


0A18  Items on the International Munitions List.

License Requirements

Reason for Control: NS, RS, UN, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
RS applies to 0A18.c--RS Column 2
UN applies to entire entry--UN Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    LVS: $5000 for 0A18.a and b; $3000 for 0A18.c; $1500 for 0A18.d 
through f
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


0A80  Horses by sea.

License Requirements

Reason for Control: SS

Control(s)
SS applies to entire entry. For licensing requirements, please turn to 
part 754 of this subchapter. The country chart is not designed to 
determine licensing requirements for items controlled for SS reasons.

List of Items Controlled

* * * * *


0A82  Saps; thumbcuffs, thumbscrews, leg irons, shackles, and 
handcuffs; specially designed implements of torture; straight jackets, 
plastic handcuffs, police helmets and shields; and parts and 
accessories, n.e.s.

License Requirements

Reason for Control: CC

Control(s) and Country Chart
CC applies to entire entry--CC Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


0A84  Shotguns, barrel length 18 inches (45.72 cm) inches or over; 
buckshot shotgun shells; and discharge type arms (for example, stun 
guns, shock batons, electric cattle prods, immobilization guns and 
projectiles, etc.) except equipment used exclusively to treat or 
tranquilize animals, and except arms designed solely for signal, flare, 
or saluting use; and parts, n.e.s., including optical sighting devices 
for firearms.

License Requirements

Reason for Control: CC, UN

Control(s) and Country Chart
CC applies to shotguns with a barrel length over 18 in. (45.72 cm) but 
less than 24 in. (60.96 cm) and shotgun shells, regardless of end 
user--CC Column 1
CC applies to shotguns with a barrel length over 24 in. (60.96 cm), 
regardless of end-user--CC Column 2
CC applies to shotguns with a barrel length over 24 in. (60.96 cm) if 
for sale or resale to police or law enforcement--CC Column 3
UN applies to entire entry--UN Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A [[Page 25477]] 

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


0A86  Shotgun shells, except buckshot shotgun shells, and parts.

License Requirements

Reason for Control: UN

Control(s) and Country Chart
UN applies to entire entry--UN Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determinted in Final Rule)

List of Items Controlled

* * * * *


0A88  Conventional military steel helmets as described by 0A18.f.1; and 
machetes.

License Requirements

Reason for Control: UN

Control(s) and Country Chart
UN applies to entire entry--UN Column 1

License Alternatives

License Exceptions

    LVS: N/A
    CSR: N/A
    GBS: N/A
    NSG: N/A
    CIV: N/A

Special Comprehensive License: (To Be Determinted in Final Rule)

List of Items Controlled

* * * * *
B. Test, Inspection and Production Equipment
    [Reserved]
C. Materials
    [Reserved]
D. Software
    [Reserved]
E. Technology


0E18  Technology for the development, production, or use of items 
controlled by 0A18.b through 0A18.e.

License Requirements

Reason for Control: NS, RS, UN, AT

Control(s) and Country Chart
NS applies to entire entry--NS Column 1
RS applies to technology for the development, production or use of 
items controlled by 0A18.c for RS reasons--RS Column 2
UN applies to entire entry--UN Column 1
AT applies to entire entry--AT Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: Yes

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *


0E84  Technology for the development or production of shotguns 
controlled by 0A84 and shotgun shells.

License Requirements

Reason for Control: CC, UN

Control(s) and Country Chart
CC applies to technology for the development or production of shotguns 
with a barrel length over 18 in. (45.72 cm) but less than 24 in. (60.96 
cm) and shotgun shells, regardless of end user--CC Column 1
CC applies to technology for the development or production of shotguns 
with a barrel length over 24 in. (60.96 cm), regardless of end-user--CC 
Column 2
CC applies to technology for the development or production of shotguns 
with a barrel length over 24 in. (60.96 cm) if for sale or resale to 
police or law enforcement--CC Column 3
UN applies to entire entry--UN Column 1

License Alternatives

License Exceptions

    NSG: N/A
    CIV: N/A
    TSR: N/A

Special Comprehensive License: (To Be Determined in Final Rule)

List of Items Controlled

* * * * *

Supplement No. 2 to Part 774--General Technology and Software Notes 
(To Be Included With Publication of Final Rule)

Supplement No. 3 to Part 774--Definitions to the Commerce Control 
List (To Be Included With Publication of Final Rule)

[FR Doc. 95-10994 Filed 5-10-95; 8:45 am]
BILLING CODE 3510-DT-P