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

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.

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:

• 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.)

• 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.

• The chapters of the regulations would be

arranged to give the exporter and reexporter

a logical path to follow.

• 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 listbased 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.

• The Country Groups used in the current

regulations would be revised in favor of

Groups which better reflect post-Cold War

circumstances.

• The CCL would be redesigned to state

the reasons for control more specifically

within each Export Control Classification

Number (ECCN).

• 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-bypart 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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

§ 732.7; arise during or result from

fundamental research, as described in

§ 732.8; are educational, as described in

§ 732.9; or are included in certain patent

applications, as described in § 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 §§ 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 stepby-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.
25270 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 nonmilitary 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-bycase basis; and
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 endusers. Specifically, § 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 § 744.4

would prohibit the export or reexport of

items with certain chemical and

biological weapon end-uses. Next,

§ 744.5 would prohibit the export or

reexport of items to be used for

specified nuclear maritime end-uses.

Finally, § 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 endusers.

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
25272 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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, endusers, 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 §§ 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.
25274 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 (§ 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

(§ 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 (§ 764.2(k)), description of

sanction (§ 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 § 787.6

violation of ‘‘export, diversion, reexport,

transshipment’’ has been replaced by

the new § 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 § 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

§ 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 § 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

(§ 766.14) and permitting cases to be

disposed of through ‘‘summary

decisions,’’ such as through motions for

summary judgment (§ 766.8).

Significant changes would be made to

simplify and clarify the process by

which cases are settled (§ 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 (§ 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

§ 779.1 (the Commerce Control List,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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,
25276 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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.

§ 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.

§ 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, nonsensitive 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.

§ 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

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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.

§ 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.

§ 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.

§ 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 boycottrelated agreements. The EAR prohibits

certain discriminatory or boycottsupporting 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.

§ 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.
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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.

§ 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.’’ (§ 732.2 of

this part)

(2) It describes the kinds of items of

U.S. origin that are subject to the EAR

(§§ 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. (§ 732.4 of this part)

(3) It describes the activities of U.S.

persons and foreign persons that are

subject to the EAR. (§ 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. (§ 732.6 of

this part)

(5) It sets forth the special policies

under the EAR that apply to exports

involving Canada. (§§ 732.6 and 732.12

of this part) (§ 748.3 of this subchapter)

(6) It describes how the EAR deal with

exports from U.S. foreign trade zones.

(§ 732.13 of this part)

(7) It makes clear that items moving

in transit through the United States are

subject to the EAR. (§ 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. (§ 732.15 of this part)

(9) It makes clear that compliance

with the EAR does not relieve any

responsibilities under foreign laws or

regulations. (§ 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.

§ 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

§ 732.2 through § 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 § 732.6 of this part. Publicly

available technology and software not

subject to the EAR are described in

§ 732.7 through § 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 § 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 § 734.2(b)(8) of this subchapter.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25279

1The 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.

§ 732.3 Items subject to the EAR.

All U.S. origin items and certain

foreign-made products as described in

§ 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 § 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 § 732.7 of this part;

(2) Arise during or result from

fundamental research, as described in

§ 732.8 of this part;

(3) Are educational, as described in

§ 732.9 of this part;

(4) Are included in certain patent

applications, as described in § 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.1

§ 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 § 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

§ 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 foreignmade 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 foreignmade 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 foreignmade 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.

§ 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 § 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.

§ 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 § 748.3 of

this subchapter.

§ 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));
25280 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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.

§ 732.8 Information resulting from

fundamental research.

(a) Fundamental research. Paragraphs

(b) through (d) of this section and

§ 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 § 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 § 732.11 of this

part will apply if a university or its

researchers accept specific national

security controls (as defined in § 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 § 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)).

§ 732.9 Educational information.

‘‘Educational information’’ referred to

in § 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 § 732.8(b) of this part. (See

Supplement No. 1 to part 732,

Questions C(1) through C(6)).

§ 732.10 Patent applications.

The information referred to in

§ 732.3(b)(4) of this part is:
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25281

2Regulations 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.

(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; 2 or

(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.

§ 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, § 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).)

§ 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 § 758.1(d) of this subchapter for

special documentation provisions that

apply to exports from the United States

that transit Canada.

§ 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.

§ 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 § 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.

§ 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.
25282 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

§ 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. (§§ 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. (§ 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. (§ 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. (§ 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 § 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. (§ 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. (§ 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. (§ 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. (§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25283

teaching laboratories of academic institutions

is not subject to the EAR. (§ 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 highperformance 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 § 732.9 of this part

because your proprietary business does not

qualify as an ‘‘academic institution’’ within

the meaning of § 732.9 of this part.

Conceivably, however, the instruction might

qualify as ‘‘release at an open * * * seminar,

* * * or other open gathering’’ under

§ 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 § 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’’ (§ 732.8(b) of this

part). Information arising during or resulting

from such research is not subject to the EAR

(§ 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

§ 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. (§ 732.8 of this part)

Question D(9): I am doing research on

high-powered lasers in the central basicresearch 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

(§ 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. (§ 732.8(d) of this part)

Question D(11): I work as a researcher at

a Government-owned, contractor-operated
25284 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

1Exporters should note that these provisions do

not apply to software controlled under the

International Traffic in Arms Regulations (e.g.,

certain encryption software).

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.

(§ 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

§ 732.8 of this part. Is the information arising

during or resulting from this sponsored

research subject to the EAR?

Answer: Under § 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 § 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

§ 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?

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. (§ 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?
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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 § 734.2(a) of this part and

upon the general prohibitions described

in § 734.2(b) of this part. Note that the

ten general prohibitions contain crossreferences 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.

§ 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
25286 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

1The 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).

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

(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 § 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 § 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 § 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 § 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

§ 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.

§ 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.

§ 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 (§ 734.2(b)(6) of this

subchapter) unless it is specifically

authorized in part 746 of this

subchapter.

§ 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

(§ 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)

(§ 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.

§ 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)

(§ 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) (§ 734.2(b)(4) and

(b)(5) of this subchapter) described in

part 740 of this subchapter.

§ 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
25288 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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 § 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 §§ 736.7

and 736.8 of this Part to identify

whether additional limits described in

§ 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.

§ 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.

§ 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)

(§ 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 § 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.

§ 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.

§ 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)

(§ 734.2(b)(7) of this subchapter) as that

activity is described in § 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) (§ 734.2(b)(1),

(b)(2), and (b)(3) of this subchapter).

Moreover, such activity extends to

services and dealing in wholly foreignorigin items in support of the specified

proliferation activity.

(b) Second, review the definition of

‘‘U.S. Person.’’

§ 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

(§ 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.

§ 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.

§ 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 crossreferenced regulations in this

subchapter, you will know which, if

any, of the ten general prohibitions in
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part 734 of this subchapter apply to you

and your contemplated transaction or

activity.

§ 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 § 758.2 of this subchapter.

(b) Requirements pertaining to the

preparation and use of a Shipper’s

Export Declaration in § 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 §§ 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 § 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.

§ 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.

§ 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.

§ 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

§ 738.3(a) of this part) to any country in

the world.

§ 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
25290 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 inchpound 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.

§ 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 § 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.

§ 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.
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(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.

BILLING CODE 3510–DT–P
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BILLING CODE 3510–DT–C
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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.

§ 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 § 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 § 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 § 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 § 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 enduse, 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 § 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) (§ 732.2(b)(1), (b)(2), or (b)(3)

of this subchapter). If General

Prohibitions Four through Ten

(§ 732.2(b)(4) through (b)(10) of this

subchapter) also do not apply, you must
25300 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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.

§ 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 § 740.15, Governments

(GOV)).

(6) The commodity you are shipping

is a specially designed crime control

and detection instrument or equipment

as described in § 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, § 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.

§ 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 § 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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 § 732.12 of this subchapter).

(c) Restrictions on commodities redirected 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.

§ 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.

§ 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 § 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.

§ 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
25302 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

subchapter. Retransfer to military endusers 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.

§ 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 newsgathering 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 § 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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.

§ 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,
25304 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

1The 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.’’

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 7513,1 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.

(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).

§ 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,

§ 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

§ 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 § 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.

§ 740.11 Servicing and Replacement

(S&R).

(a) Scope. This License Exception,

designated License Exception S&R,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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
25306 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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)).

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25307

2Where a validated license is required, see

§§ 748.2 and 748.4(g).

3See Part 772 for definitions of United States and

Canadian airlines.

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: 2

(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 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:

(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.

§ 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 nonpeaceful 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 § 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.

§ 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
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4Many foreign countries permit the entry, dutyfree, 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.

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.

§ 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.’’ 4

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 § 734.2(b) of this subchapter,

must be licensed by BXA. (See § 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.

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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.

§ 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.

§ 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.

§ 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, § 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 § 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.

§ 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
25310 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 732.4 of this

subchapter.)

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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 NonProliferation 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.

§ 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). (§ 742.2 of this part)

(2) Nuclear non-proliferation (NP).

(§ 742.3 of this part)

(3) National security (NS). (§ 742.4 of

this part)

(4) Missile technology (MT). (§ 742.5

of this part)

(5) Regional stability (RS). (§ 742.6 of

this part)

(6) Crime control (CC). (§ 742.7 of this

part)

(7) Anti-terrorism (AT): Iran. (§ 742.8

of this part)

(8) Anti-terrorism (AT): Syria. (§ 742.9

of this part)

(9) Supercomputers (SC). (§ 742.12 of

this part)

(10) Communications intercepting

devices (CI). (§ 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 § 742.5(b)(3) of

this part), nuclear non-proliferation (see

§ 742.3(b)(2) of this part), or chemical

and biological weapons (see

§ 742.3(b)(3) of this part) and all

national security items may be reviewed

for anti-terrorism reasons (see

§§ 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.

§ 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,
25316 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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 NonProliferation 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 §§ 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 enduser 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 § 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 NuclearRelated 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.

§ 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.

§ 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).
25318 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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 preexisting 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.

§ 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 likeminded countries in maintaining

regional stability controls, at this time

these controls are maintained only by

the United States.

§ 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 enduser); 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.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 likeminded countries in maintaining

controls on crime control and detection

items, at this time these controls are

maintained only by the United States.

§ 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 likeminded countries in maintaining antiterrorism controls, at this time these

controls are maintained only by the

United States.

§ 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.
25320 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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 enduse. Applications for non-military endusers 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 foreignproduced 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 preexisting 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 likeminded countries in maintaining antiterrorism controls, at this time these

controls are maintained only by the

United States.

§ 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 caseby-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 enduser 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 foreignproduced 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 likeminded countries in maintaining antiterrorism controls, at this time these

controls are maintained only by the

United States.

§ 742.11 [Reserved]

§ 742.12 Supercomputers.

(a) License requirements. (1) This

section contains special provisions for

exports, reexports, and certain intracountry 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 intracountry 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.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 caseby-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, antisubmarine, 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 caseby-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 enduse 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 enduse 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 nonscientific 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.

§ 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
25322 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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,Ndiisopropylaminoethane-2-thiol, N,Ndiisopropylaminoethyl-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 § 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

§§ § 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 enduses: 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 enduses 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 nonmilitary 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 enduses 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 enduses 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 enduses: 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 enduses: 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 endusers. 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 enduses 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 nonmilitary end-users or for non-military enduses in Syria will be considered on a caseby-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 nonmilitary end-users or for non-military enduses in Syria will be considered on a caseby-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-
25324 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

military end-users or for non-military enduses in Syria will be considered on a caseby-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 endusers: 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 nonmilitary end-users or for non-military enduses in Syria will be considered on a caseby-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 nonmilitary end-users or for non-military enduses in Syria will be considered on a caseby-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 nonmilitary end-users or for non-military enduses in Syria will be considered on a caseby-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 nonmilitary 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 endusers 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 enduses.

(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 endusers 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 nonmilitary end-users or for non-military enduses 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 nonmilitary end-users or for non-military enduses 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 endusers or end-uses; October 23, 1992, for nonmilitary 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 nonmilitary end-users or for non-military enduses 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 nonmilitary end-users or for non-military enduses 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
25326 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 nonmilitary end-users or for non-military enduses 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 nonmilitary end-users or for non-military enduses 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 endusers or end-uses; October 23, 1992, for nonmilitary 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.
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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 IranIraq Arms Non-Proliferation Act (i.e.,

contract sanctity established prior to October

23, 1992) will be considered on a case-bycase 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 § 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

§ 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:
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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 intracountry 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 enduses 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 enduse, 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 securityrelated 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 inputoutput 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 enduses 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:
25330 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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 § 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 § 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

§ 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: ENDUSER AND END-USE BASED

Sec.

744.1 General provisions.

744.2 Restrictions on certain nuclear enduses.

744.3 Restrictions on certain missile enduses.

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 EndUse 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.

§ 744.1 General provisions.

(a) Introduction. This part contains

prohibitions against exports, reexports,

and selected transfers to certain endusers 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.

§ 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25331

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 § 748.4 of this subchapter for special

provisions relating to technical data for maritime

nuclear propulsion plants and other commodities.

3 Such activities may also require a specific

authorization from the Secretary of Energy pursuant

to § 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.

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.1, 2

(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: 3

(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 § 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.

§ 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
25332 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

4See Supplement No. 1 to part 742 for relevant

contract sanctity dates.

(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.

§ 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.4

§ 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 § 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.

§ 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25333

5 Where a license is required, see §§ 748.2 and

748.4(g).

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.

§ 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 5 all of the following:

(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
25334 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

abroad for use in their aircraft

operations.

(3) Applicable commodities. This

§ 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.

§ 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 enduse 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).

Location Projects

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.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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), BosniaHerzegovina, Croatia.

746.7 Rwanda.

746.8 through § 746.16 [Reserved]

746.17 Humanitarian License.

Supplement No. 1 to Part 746—HumanNeeds 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.

§ 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 militaryrelated 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.

§ 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 § 740.8(b)(8) of this

subchapter).

(ii) Operating Technology and

Software (OTS) for legally exported

commodities (see § 740.17 of this

subchapter).

(iii) Sales Technology (STS) (see

§ 740.18 of this subchapter).

(iv) Software Updates (SUD) for

legally exported software (see § 740.19

of this subchapter).

(v) Parts (PTS) for one-for-one

replacement in certain legally exported

commodities (see § 740.10 of this

subchapter).

(vi) Baggage (BAG) (see § 740.12 of

this subchapter).

(vii) Governments (GOV) (see § 740.15

of this subchapter).

(viii) Gift parcels (GFT) (see § 740.16

of this subchapter).

(ix) Items in transit (TUS) from

Canada through the U.S. (see

§ 740.9(b)(4) of this subchapter).

(x) Aircraft and Vessels (A&V) for

certain aircraft on temporary sojourn

(see § 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

§ 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 humanneeds items. BXA will review on a caseby-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
25336 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 nongovernmental 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.

§ 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 § 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 § 740.12 of this

subchapter).

(ii) Governments (GOV) (See § 740.15

of this subchapter).

(iii) Parts (PTS) for one-for-one

replacement in certain legally exported

goods (See § 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.

§ 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 foreignmanufactured 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 foreignmanufactured 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25337

(BAG) (see § 740.12 of this subchapter).

(B) Governments (GOV) (see § 740.15 of

this subchapter). (C) Gift parcels (GFT)

(see § 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 § 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 § 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 § 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

§ 740.8(b)(8) of this subchapter).

(ii) Operating Technology and

Software (OTS) for legally exported

commodities (see § 740.17 of this

subchapter).

(iii) Sales Technology (STS) (see

§ 740.18 of this subchapter).

(iv) Software Updates (SUD) for

legally exported software (see § 740.19

of this subchapter).

(v) Parts (PTS) for one-for-one

replacement in certain legally exported

commodities (§ 740.10 of this

subchapter).

(vi) Baggage (BAG) (§ 740.12 of this

subchapter).

(vii) Aircraft and Vessels (A&V) for

vessels only (see § 740.13(c)(1) of this

subchapter).

(viii) Governments (GOV) (see

§ 740.15 of this subchapter).

(ix) Gift parcels (GFT) (see § 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 m3/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 m3/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 foreignmanufactured 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
25338 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

1Export 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).’’

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.

§ 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 § 740.8(b)(8) of this

subchapter).

(ii) Operating Technology and

Software (OTS) for legally exported

commodities (see § 740.17 of this

subchapter).

(iii) Sales Technology (STS) (see

§ 740.18 of this subchapter).

(iv) Software Updates (SUD) for

legally exported software (see § 740.19

of this subchapter).

(v) Parts (PTS) for one-for-one

replacement in certain legally exported

commodities (§ 740.10 of this

subchapter).

(vi) Baggage (BAG) (§ 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.1 (see § 740.13(a) and

(c)(1) of this subchapter).

(viii) Governments (GOV) (see

§ 740.15 of this subchapter).

(ix) Gift parcels (GFT) (see § 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 § 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.

§ 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 BosniaHerzegovina. 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 traderelated transactions involving those

areas of the Republic of BosniaHerzegovina 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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 mate ́riel 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).

§ 746.8–§ 746.16 [Reserved]

§ 746.17 Humanitarian License.

A Humanitarian License is

established that authorizes exports to

certain embargoed destinations of

donated goods to meet basic humanneeds 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-
25340 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.lllll, 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.

lllllllllllllllllllll

(Name and Title)

lllllllllllllllllllll

(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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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

§ 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 § 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 § 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 mate ́riel 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 (BosniaHerzegovina, 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; EndUser 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.
25342 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

§ 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.

§ 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.

§ 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 § 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-bycase 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 § 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.

§ 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25343

is not acceptable as the ultimate

consignee.

(b) Reserved.

§ 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 § 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 § 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 § 748.2 of this part. If you

decide to use an overnight courier, use

the address listed in § 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 § 750.7(f) of this

subchapter.

§ 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

§ 748.4(a) of this part. If the license

application is filed for an account other

than that of the applicant, the agent, as
25344 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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 § 748.6(c) of

this section.

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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.

§ 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;
25346 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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 § 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 § 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 enduser 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 § 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

§ 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 § 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

§ 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 § 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 § 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 § 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 enduse described in § 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 § 744.2 of this subchapter.

Indicate, if possible, the specific enduse(s) the items will have in designing,

developing, fabricating, or testing

nuclear weapons or nuclear explosive

devices or in designing, constructing,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25347

fabricating, or operating the facilities

described in § 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 enduse 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 foreignmade 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 foreignmade 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 foreignmade 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 foreignmade product, if they exceed the

amount allowed by § 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 foreignmade product. Indicate the final

configuration if the product is intended
25348 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 748.8(l)(1)(ii) of this section for

vessels or information contained in

§ 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 electromagnetic 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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.

§ 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 § 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 § 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 § 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
25350 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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

§ 748.10 of this part.,

(ii) If no, your transaction may require

a Statement by Ultimate Consignee or

Purchaser. Proceed to § 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 § 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 § 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 § 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 EndUser Certificate to the address stated in

§ 748.14 of this part, ‘‘Attn: Import/EndUser 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

§ 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.

§ 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 § 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 EndUser 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 EndUser 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 EndUser 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 EndUser 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
25352 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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.

§ 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

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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 EndUser 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

§ 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 § 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 § 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;
25354 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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.

§ 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

§ 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 § 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 lll have been

exported, and all delivery verification

documents are attached.

(ii) A part of the quantity authorized

by license number lll 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.

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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 § 748.11 of

this subchapter.

Block 14: Applicant. Enter the applicant’s

name, street address, city, state/country, and

postal code. Refer to § 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 § 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 § 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 § 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 enduse 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’’.
25356 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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

‘‘§ 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 § 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 § 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

Exportaciones Sensitivas y Material Belico Balcarce 362—ler.

piso—Capital Federal—CP 1064 Buenos Aires. Tel. 334–

0738, Fax 331–1618.

IC/DV.

Australia .................................................... Director, Technology Transfer and Analysis, Industry Policy and

Operations Division, Department of Defense, Russell Office,

Canberra, A.C.T. 2600.

IC/DV.

Austria ....................................................... Bundesministerium fur Handel Gewerbe und Industrie Landstr.

Haupstr. 55–57, Vienna 1031.

IC/DV.

Belgium ..................................................... Ministere Des Affaires Economiques Office Central des Contingents et Licences 24–26 Rue De Mot, Bruxelles-1040.IC/DV.

Bulgaria ..................................................... Ministry of Trade 12 Al. Batenberg 1000 Sofia ............................ IC/DV.

China, People’s Republic of ...................... Technology Import and Export, Department MOFERT, No. 2

Dong Chang An Street, Beijing, Telephone: 553031, Telex:

22478 MFERTCN.

PRC End-User Certificate.

Czech Republic ......................................... Federal Ministry of Foreign Trade, Head of Licensing

Politickych, Veznu 20 112 49 Praha 1.

IC/DV.

Denmark .................................................... Handelsministeriets, Licenskontor, Kampmannsgade 1, DK

1604, Copenhagen V.

IC/DV.

IC’s also issued by Danmarks Nationalbank, Holmens Kanal 17,

Copenhagen K Custom-houses.

DV.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25357

Country IC/DV authorities System administered

Finland ....................................................... Hensingin Piiritullikamari, Kanavakatu 6 (or P.O. Box 168),

00161 Helsinki.

IC/DV.

France ....................................................... Ministere de l’Economie et des, Finances Direction 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.

IC/DV.

Germany .................................................... Bundesamt fur gewerbliche, Wirtschaft Frankfurter Strasse, 29–

31 65760 Eschborn.

IC/DV.

Greece ....................................................... Banque de Greece, Direction des Transactions Commerciales

avec l’Etranger, Athens.

IC/DV.

Hong Kong ................................................ Trade Department, Ocean Centre, Canton Road, Tsimshatsui,

Kowloon,.

IC/DV.

Hungary ..................................................... Ministry of International Economic Relations Export Control Office, 1054 Budapest P.O. Box 728, H–1365, Hold Str. 17.IC/DV.

India ........................................................... Deputy Director General of Foreign Trade Udyog Bhawan,

Maulana Azad Road, New Delhi 11011: For small scale industries and entities, and those not elsewhere specified.

Indian IC.

Directorate General of Technical Development, Udyog Bhawan,

Maulana Azad Road, New Delhi 11011: For the ‘‘organized’’

sector, except for computers and related equipment.

Indian IC.

Defense Research and Development Organization, Room No.

224, ‘‘B’’ Wing Sena Bhawan, New Delhi 110011: For Defense organizations.

Indian IC.

Department of Electronics, Lok Nayak Bhawan, New Delhi

110003: For computers and related electronic items.

Indian IC.

Assistant Director, Embassy of India, Commerce Wing, 2536

Massachusetts Ave. NW, Washington D.C. 20008—: For any

of the above.

Indian IC.

Ireland, Republic of ................................... Department of Industry, Trade, Commerce and Tourism, Frederick House, South Frederick Street, Dublin 2.IC/DV.

Italy ............................................................ Ministero del Commercio con l’Estero Direzione Generale delle

Importazioni e delle Esportazioni, Div. III, Rome, Dogana

Italiana (of the town import where takes place).

IC/DV.

Japan ......................................................... Ministered of International Trade and Industry in: Fukuoka, Hiroshima, Kanmon (Kitakyushu-shi), Kobe, Nagoya, Osaka,

Sapporo, Sendai, Shikoku (Takamatsu-shi), Shimizu, Tokyo,

and Yokohama.

IC.

Japanese Customs Offices ........................................................... DV.

Korea, Republic of .................................... Trade Administration Division, Trade Bureau Ministry of Trade

and Industry Jungang-Dong, Kyonggi-Do, Building 3,

Kwachon.

IC.

Republic of Korea Customs House ............................................... DV.

Liechtenstein ............................................. Swiss Federal Office for Foreign Economic Affairs, Import and

Export Division Zieglerstrasse 30, CH–3003 Bern.

IC/DV.

Luxembourg .............................................. Office des Licences, Avenue de la Liberte, 10 ............................. IC/DV.

Netherlands ............................................... Centrale Dienst voor In-en Uitvoer, Engelse Kamp 2, Groningen IC/DV.

New Zealand ............................................. Comptroller for Customs, P.O. Box 2218, Wellington .................. IC/DV.

Norway ...................................................... Handelsdepartmentet, Direktoratet for Eksport-ogImportregulering, Fr. Nansens plass 5, Oslo.IC/DV.

Pakistan ..................................................... Chief Controller of Imports and Exports, 5, Civic Center,

Islamabad.

IC.

Joint Science Advisor, Ministry of Science and Technology, Secretariat, Block ‘S’, Islamabad.DV.

Poland ....................................................... Ministry of Foreign Economic Relations Department of Commodities and Services, Plac Trzech Krzyzy 5, Room 358, 00–507

Warsaw.

IC/DV.

Portugal ..................................................... Reparticao do Comercio Externo, Direccao-Geral do Comercio,

Secretaria de Estado do Comercio, Ministerio da Economia,

Lisbon.

IC/DV.

Romania .................................................... National Agency for Control of Strategic Exports and 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.

IC/DV.

Singapore .................................................. Controller of Imports and Exports, Trade Development Board,

World Trade Centre, 1 Maritime Square, Telok Blangah Road,.

IC/DV.

Slovakia ..................................................... Ministry of Foreign Affairs, Licensing-Registration Department,

Spitalska 8, 813 15 Bratislava.

IC

Spain ......................................................... Secretary of State for Commerce, Paseo la Cistellana 162, Madrid 28046.IC/DV.

Sweden ..................................................... The Association of Swedish Chambers of Commerce & Industry

P.O. Box 16050, S–103 22 Stockholm Office: Vastra

Tradgardsgatan 9.

IC/DV.

Switzerland ................................................ Swiss Federal Office for Foreign Economic Affairs, Import and

Export Division, Zieglerstrasse, 30 CH–3003 Bern.

IC/DV.
25358 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

Country IC/DV authorities System administered

Taiwan ....................................................... Board of Foreign Trade Ministry of Economic Affairs, 1 Hu-Kou

Street, Taipei.

IC/DV.

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, Ankara.IC.

Head Customs Office at the point of entry ................................... DV.

United Kingdom ......................................... Department of Trade and Industry, Export Licensing Branch,

Millbank Tower Millbank, London, SW1P 4QU.

IC.

H.M. Customs and Excise, King’s Beam House, Mark Lane,

London, E.C. 3.

DV.

1Samples of Import Certificates and Delivery Verifications issued by each of these countries may be viewed at any of the offices identified in

§ 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.

§ 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.

§ 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.

§ 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.

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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-togovernment assurances of suitable enduse 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 nonproliferation reasons. The SNEC also

reviews license applications involving

items not controlled for nuclear nonproliferation (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
25360 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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 touchtone 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 § 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.

§ 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.

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 markup, 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 § 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

‘‘§ 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

§ 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 § 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
25362 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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 § 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.

§ 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 § 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 § 764.3 of this

subchapter.

§ 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 § 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.

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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) lllll 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.

§ 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 ‘‘§ value’’

or ‘‘in § 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:
25364 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

$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.

§ 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].

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 subassemblies, 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

§ 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 endusers 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 § 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 § 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.

§ 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 § 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).

§ 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.

§ 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 § 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
25366 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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 § 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

§ 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

§ 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 § 752.12 of this part. If
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

§ 752.6 of this part, and that the

consignee agrees to the notice

requirements described in § 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 § 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

§ 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

§ 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.’’

§ 752.6 Reexports.

(a) Authorized reexports. Consignees

may reexport items under License

Exception 18 (APR) (see § 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 § 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 § 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 § 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 § 752.5(c)(3) of

this part and ICP required by § 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 § 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).

§ 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
25368 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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 § 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 timeframes. (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.

§ 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 § 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.

§ 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;
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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.

§ 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 § 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 § 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 § 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 § 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.

§ 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 § 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
25370 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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 §§ 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 §§ 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 nonproliferation 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 § 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 §§ 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 §§ 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 nonproliferation 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 744.2 of this subchapter;

(F) A system for assuring compliance

with controls over missile-related items

and end-uses described in §§ 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 §§ 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 § 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.

§ 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 § 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 § 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.

§ 752.14 Inspection of records.

(a) Availability of records. You and all

consignees must make available all of

the records required by § 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.
25372 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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.

§ 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.

§ 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 § 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 § 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 § 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.

§ 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.

§ 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.

§ 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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 § 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 § 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 § 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, § 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 § 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 § 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).

§ 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,
25374 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

1On 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.

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-ofway 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.1

(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 unallocated 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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 nonnaval 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 § 740.1 and § 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 ‘‘SSNPR’’.

§ 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) lllllllllllllll

(Date) llllllllllllllllll

(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-bycase 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
25376 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 §§ 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 ‘‘SSWRC’’.

(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.

§ 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.

§ 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.

§ 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.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25377

1The 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.

SCHEDULE B—Continued

Number Commodity description 1

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.

SCHEDULE B—Continued

Number Commodity description 1

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.

1The 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

11 Commodity description

Unit of

quantity2

200.3516 Western red cedar

(Thuja plicata) logs

and timber ................. MBF

202.2820 Western red cedar lumber; rough, containing

wane .......................... MBF

SCHEDULE B—Continued

Number

11 Commodity description

Unit of

quantity2

202.2840 Western red cedar lumber; dressed or

worked, containing

wane .......................... MBF

1Schedule B Numbers are provided only as

a guide to proper completion of the Shipper’s

Export Declaration, Form No. 7525 V. 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) 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 TransAlaska 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;
25378 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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 § 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.

§ 756.1 Introduction.

§ 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.

§ 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.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 756.2(a)(2) of this part.

§ 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
25380 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

1The 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).

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

§ 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 § 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

(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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

§ 740.15 through § 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 (§ 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 § 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 § 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
25382 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

port of entry and a copy provided, if

requested by the Canadian authorities.

(2) Reserved.

§ 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.

§ 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 § 750.6(d) of this

subchapter and § 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

§ 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 § 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 § 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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.
25384 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

2Form 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.

(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 § 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 llll 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 § 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 7513,2 for the

following types of transactions:

(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 foreignorigin merchandise (see part 772 of this

subchapter for a definition of ‘‘foreignorigin,’’), 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 § 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 30.39 of the Foreign Trade

Statistics Regulations (FTSR) of the

Bureau of the Census (15 CFR § 30.39).

Exporters interested in the procedure

should consult § 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

§ 750.7 of the Export Administration

Regulations, if requested;

(5) Compliance with the destination

control statement provisions of §§ 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 § 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 § 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 § 30.39 of the Foreign

Trade Statistics Regulations (15 CFR

§ 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.

§ 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’’
25386 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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 § 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

§ 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

§ 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 § 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 § 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

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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.

§ 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 § 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 § 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

§ 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 § 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
25388 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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

§ 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
25390 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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.

§ 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 § 762.2 of this part, that are

made or obtained by that person, and

shall produce them in a manner

provided by § 762.6 of this part.

§ 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

§ 762.1(a) of this part, or that are made

or obtained by a person described in

§ 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 § 736.14, § 740.1, § 740.20,

Supplement No. 4 to part 742,

§§ 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.

§ 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.

§ 762.4 Original records required.

The regulated person must maintain

the original records in the form in
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25391

which he or she receives or creates them

unless he or she meets all of the

conditions of § 762.5 of this part relating

to reproduction of records.

§ 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 § 762.2 of this part, the

regulated persons defined in § 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.

§ 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.

§ 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.
25392 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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.

§ 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.

§ 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

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25393

1The Federal Sentencing Guidelines found in

§ 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.

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.

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

§ 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.

§ 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 exportrelated 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 § 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 § 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 § 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.1

(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.2

(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
25394 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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. Statutorilymandated 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 NonProliferation 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 § 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)).

§ 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 § 764.2(i) of this part.

§ 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.
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 selfdisclosure 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 selfdisclosure.

(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 exportrelated 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

§ 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 § 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

§ 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 § 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 selfdisclosures. 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,
25396 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 766.18 of this subchapter

and attempt to settle the matter;

(4) Issue a charging letter pursuant to

§ 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 selfdisclosure 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 § 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 § 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

§ 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 selfdisclosure, 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 § 734.2(b)(4)

of this subchapter; § 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 nonstandard 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,
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25397

1But see § 764.3(a)(2) which permits BXA, by

request, to authorize certain actions prohibited by

a denial order.

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: 1

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

§ 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. Nonstandard 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 semiannual 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.
25398 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

1By 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.

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.

§ 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.

§ 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.

§ 766.3 Institution of administrative

enforcement proceedings.

(a) Charging letters. The Director of

the Office of Export Enforcement 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 § 766.6 of this

part will be treated as a default under

§ 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.

(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.
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§ 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.

§ 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.

§ 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 § 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 § 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.

§ 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 § 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 § 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.

§ 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.

§ 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
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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.

§ 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

§ 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.

§ 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.

§ 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.

§ 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.
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(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

§ 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.

§ 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.

§ 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.

§ 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.

§ 766.17 Decision of the administrative law

judge.

(a) Predecisional matters. Except

insofar as the default procedures of

§ 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 § 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 § 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 § 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
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suspension shall also be served on the

respondent in accordance with the

provisions of § 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

§ 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 § 766.7(a) of this part,

whichever occurs first.

§ 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 § 766.21 or

§ 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 § 766.21 or

§ 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

§ 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.

§ 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 § 766.21 or § 766.22 of

this part, as appropriate.

§ 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 § 766.21 of this part or

review under § 766.22 of this part, the

decision of the administrative law judge

and such submissions as are provided

for by §§ 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 § 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

§ 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 § 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.
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(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 § 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 § 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.

§ 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.

§ 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 § 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).

§ 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 § 766.22 of this

part.
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§ 766.24 Temporary denials.

(a) General. The procedures in

§ 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 § 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 § 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

§ 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 § 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

§ 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
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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

§ 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

§ 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).

§ 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 § 734.2(b)(4) (General

Prohibition 4—Engage in actions

prohibited by a denial order) and

§ 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.

§ 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 §§ 768.4(b) and

768.7 of this part) and decontrol

assessments (see §§ 768.4(c) and 768.7

of this part).

(2) Foreign availability to noncontrolled countries. In this category are
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denied license assessments, decontrol

assessments, and evaluations of

eligibility for expedited licensing (see

§ 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-infact’’; ‘‘from a non-U.S. source’’; ‘‘in

sufficient quantity so as to render the

control ineffective’’; and ‘‘of comparable

quality’’. (See § 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 noncontrolled 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 § 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 § 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

§ 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 § 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 § 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 § 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.

§ 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
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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 noncontrolled country.

(Note: See § 768.7 of this part for delineation

of the foreign availability assessment

procedures, and § 768.6 of this part for the

criteria used in determining foreign

availability)

§ 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 § 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 § 768.8 of this part for the

evaluation of eligibility of an item for

the Expedited Licensing Procedures.

§ 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.

§ 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 nonU.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 § 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.

§ 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
25408 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 768.1(d) of this part.

§ 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

§ 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 TACinitiated 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 TACinitiated 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
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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 noncontrolled 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 selfinitiated 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.

§ 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 selfinitiated 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
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Pennsylvania Avenue, NW, Room 3877,

Washington, DC 20230.

§ 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.

§ 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

§ 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 § 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;
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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.

§ 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.

§ 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 antifriction 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,
25412 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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, Ndimethylphosphoro- 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, NDiethylethanolamine

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,NDiisopropyl-.beta.-aminoethane thiol

2-(Diisopropylamino) ethanethiol

Diisopropylaminoethanethiol

.beta.-Diisopropylaminoethanethiol

2-(bis(1–Methylethyl)amino) ethanethiol

(11) (C.A.S. #4261–68–1) N, NDiisopropyl-.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
25414 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

(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

§ 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 § 732.7 of

this subchapter, and installation,

operation, maintenance, and repair

technology and software eligible for

License Exception 14 described in

§ 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 § 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 § 732.4 of this

subchapter.

(d) Certain License Exception. The

following questions and answers are
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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 § 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

§ 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.
25416 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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 § 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 nonproliferation, missile technology,

regional stability, crime control, antiterrorism, 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-
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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

§ 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
25418 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 § 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 § 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 twothirds 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 § 774.1 is revised

to read as follows:

§ 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 μ 109 N/m2

(Pa) or greater measured at 20≥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

* * * * *
25420 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 109 N/m2) (300,000 lbs./in2) or more at 293

K (20 ≥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

* * * * *
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 (UF6) and specially designed

or prepared equipment (including UF6

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

* * * * *
25422 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 (KNH2/NH3).

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

* * * * *
25424 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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, noncomposite 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25426 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 25427

Special Comprehensive License: (To Be

Determined in Final Rule)

List of Items Controlled

* * * * *

1C56 Chlorine trifluoride (C1F3).

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
25428 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 3.18μ106 m or greater and a

specific tensile strength of 7.62μ104 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25430 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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≥C

to 2,900≥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

* * * * *
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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≥ 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
25432 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 fabriclined journal sliding bearings manufactured

for use at operating temperatures below 219

K (Ø54≥ C) or above 423 K (150≥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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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¥4 Torr (0.76

x 10¥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 (Rc = 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
25434 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 nonelectronic 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 5×10 4 grays

(Si) (5×10 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25436 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25438 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25440 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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;
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 highcurrent 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

* * * * *
25442 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25444 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25446 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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

§ 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

§ 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 § 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

§ 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

* * * * *
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 § 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 § 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

§ 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 Ø45≥C to above +55≥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

* * * * *
25448 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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

§ 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 § 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 § 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 § 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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

§ 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

* * * * *
25450 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25452 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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

* * * * *
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25454 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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 (Ø54≥C) to

397K (124≥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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25456 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25458 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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

* * * * *
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25460 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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

* * * * *
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25462 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25464 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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≥ (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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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
25466 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25468 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25470 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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≥); 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
25472 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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≥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 ≥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 ≥C) or more.

License Requirements

Reason for Control: NS, AT

Control(s) and Country Chart

NS applies to entire entry—NS Column

1
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25474 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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

* * * * *
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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

* * * * *
25476 Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules

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
Federal Register / Vol. 60, No. 91 / Thursday, May 11, 1995 / Proposed Rules 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 enduser—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