Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Rules and Regulations 36493 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII: 

Aviation Programs describes in more 

detail the scope of the Agency’s 

authority. 

The FAA is issuing this rulemaking 

under the authority described in 

Subtitle VII, Part A, Subpart III, Section 

44701: General requirements. Under 

that section, Congress charges the FAA 

with promoting safe flight of civil 

aircraft in air commerce by prescribing 

regulations for practices, methods, and 

procedures the Administrator finds 

necessary for safety in air commerce. 

This regulation is within the scope of 

that authority because it addresses an 

unsafe condition that is likely to exist or 

develop on products identified in this 

rulemaking action. 

Regulatory Findings 

This AD will not have federalism 

implications under Executive Order 

13132. This AD will not have a 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

and 

(2) Will not affect intrastate aviation 

in Alaska. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive: 

2021–14–12 True Flight Holdings LLC: 

Amendment 39–21639; Docket No. 

FAA–2021–0541; Project Identifier AD– 

2021–00453–A. 

(a) Effective Date 

This airworthiness directive (AD) is 

effective July 27, 2021. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to True Flight Holdings 

LLC Models AA–1, AA–1A, AA–1B, AA–1C, 

and AA–5 airplanes, all serial numbers, 

certificated in any category. 

(d) Subject 

Joint Aircraft System Component (JASC) 

Code: 5512, Horizontal Stabilizer, Plate/Skin; 

5522, Elevator, Plates/Skin Structure. 

(e) Unsafe Condition 

This AD was prompted by corrosion and 

delamination of the horizontal stabilizer 

bondlines. The FAA is issuing this AD to 

detect and address cracks, buckles, corrosion, 

delamination, rust, and previous repair of the 

horizontal stabilizers. The unsafe condition, 

if not addressed, could result in reduced 

structural integrity with consequent loss of 

control of the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Inspection of Bondlines of the Horizontal 

Stabilizers 

Within the next 25 hours time-in-service or 

at the next scheduled 100 hour or annual 

inspection after the effective date of this AD, 

whichever occurs first, inspect the horizontal 

stabilizers, paying particular attention to the 

bondlines, for cracks, buckles, corrosion, 

delamination, rust, and previous repair in 

accordance with paragraphs 1. and 3. of Part 

B of True Flight Aerospace Service Bulletin 

SB–195, Revision A, dated June 1, 2021 (True 

Flight SB–195, Revision A). If there is any 

crack, buckle, corrosion, delamination, rust, 

or previous repair, before further flight, 

repair or replace the affected part in 

accordance with paragraphs 1.c. and 2. 

through 4. of True Flight SB–195, Revision A, 

as applicable. 

(h) No Reporting Requirement 

True Flight SB–195, Revision A specifies 

notifying True Flight Holdings LLC of 

compliance with the service bulletin; 

however, this AD does not contain that 

requirement. 

(i) Special Flight Permit 

A special flight permit is prohibited. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Atlanta ACO Branch, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. In accordance with 

14 CFR 39.19, send your request to your 

principal inspector or local Flight Standards 

District Office, as appropriate. If sending 

information directly to the manager of the 

certification office, send it to the attention of 

the person identified in Related Information. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(k) Related Information 

For more information about this AD, 

contact Fred Caplan, Aviation Safety 

Engineer, Atlanta ACO Branch, FAA, 1701 

Columbia Avenue, College Park, GA 30337; 

phone: (404) 474–5507; fax: (404) 474–5606; 

email: frederick.n.caplan@faa.gov. 

(l) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) True Flight Aerospace Service Bulletin 

SB–195, Revision A, dated June 1, 2021. 

(ii) [Reserved] 

(3) For True Flight Aerospace service 

information identified in this AD, contact 

True Flight Holdings LLC, 2300 Madison 

Highway, Valdosta, GA 31601; phone: (229) 

242–6337; email: info@

trueflightaerospace.com. 

(4) You may view this service information 

at the FAA, Policy and Innovation Division, 

901 Locust, Kansas City, MO 64106. For 

information on the availability of this 

material at the FAA, call (816) 329–4148. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

email: fedreg.legal@nara.gov, or go to: 

https://www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

Issued on June 25, 2021. 

Lance T. Gant, 

Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2021–14687 Filed 7–9–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 61 and 141 

[Docket No.: FAA–2021–0592] 

Notification of Policy for Flight 

Training in Certain Aircraft 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notification of policy. 

SUMMARY: This notification provides 

clarification on flight training for 

compensation in certain aircraft that 

hold special airworthiness certificates 

including limited category, 


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36494 Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Rules and Regulations 

1The FAA has not conceded that the flights being 

operated by Warbirds were for the purpose of flight 

training. 

2On April 19, 2021, AOPA, EAA, and GAMA 

sent a joint letter to Ali Bahrami, then Associate 

Administrator for Aviation Safety. A copy of this 

letter and the response has been placed in the 

docket for this notification. 

3FAA Legal Interpretation to Gregory Morris 

(October 7, 2014). The Morris Interpretation 

concluded, inter alia, that § 91.315 ‘‘does not set 

forth any exceptions for providing flight training for 

hire in a limited category aircraft’’ and that ‘‘the 

only way to provide such training is pursuant to an 

exemption from this section of the regulations’’ 

following the procedures of 14 CFR part 11. 

4 Given the broad definition of ‘‘operate’’ in § 1.1, 

both the owner of a limited category aircraft seeking 

flight training and the flight instructor providing 

the training are considered to be operating the 

aircraft. The FAA notes that the term ‘‘operate’’ has 

a different meaning from the term ‘‘operational 

control,’’ which is defined in § 1.1 as ‘‘the exercise 

of authority over initiating, conducting or 

terminating a flight.’’ 

5Consistent with the position for limited category 

aircraft, FAA Order 8900.1 addresses the 

prohibition against the operation of an experimental 

aircraft to carry persons or property for 

compensation or hire. It acknowledges that the 

restriction ‘‘prohibits the widespread use of 

experimental aircraft for flight training for 

compensation or hire.’’ FAA Order 8900.1, Vol. 3, 

Chpt. 11, sec. 1, para. 3–293. 

6FAA Order 8900.1, Vol. 3, Chpt. 11, sec. 1, para. 

3–292. 

experimental category, and primary 

category aircraft. It also provides 

guidance on how flight training for 

compensation can be accomplished in 

these aircraft in compliance with 

regulations and establishes a process for 

owners of experimental aircraft to 

obtain a letter of deviation authority to 

receive and provide compensation for 

flight training in their experimental 

aircraft. 

DATES: The policy described herein is 

effective July 12, 2021. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

policy notification, contact Erin Cappel 

for information about Letters of 

Deviation Authority and Thomas (TJ) 

Leahy for information about exemption, 

General Aviation and Commercial 

Division, General Aviation Operations 

Branch, (202) 267–1100, or email 9-AFS800-Correspondence@faa.gov, 800 

Independence Ave. SW, Washington, 

DC 20591. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On April 2, 2021, the United States 

Court of Appeals for the District of 

Columbia Circuit dismissed a petition 

for review of the FAA’s emergency cease 

and desist order against Warbird 

Adventures, Inc. and Thom Richard 

(hereinafter ‘‘Warbirds’’), ordering that 

they cease and desist from operating 

their limited category aircraft in 

violation of § 91.315 of title 14 of the 

Code of Federal Regulations (14 CFR). In 

this case, Warbirds maintained a 

publicly available website that 

advertised opportunities to fly in 

Warbirds’ limited category aircraft at 

upcoming airshows and allowed 

members of the public to book flights in 

exchange for substantial amounts of 

money. Section 91.315 states that no 

person may operate a limited category 

aircraft carrying persons or property for 

compensation or hire. 

Before the Court, Warbirds argued 

that it was conducting flight training for 

compensation in its limited category 

aircraft, which it claimed is not 

prohibited under § 91.315.1 The FAA 

responded that, under the plain 

language of § 91.315, flight training for 

compensation constitutes operating a 

limited category aircraft carrying a 

person for compensation or hire and, 

therefore, is a violation of the 

regulation. After the Court dismissed 

the petition for review, several industry 

groups requested that the FAA publish 

a statement explaining the impact of the 

decision and providing clarification 

regarding flight training in general and 

flight training for compensation in 

certain aircraft that hold special 

airworthiness certificates.2 The FAA is 

issuing this notification in response to 

the request from industry. 

II. FAA Regulations and Guidance 

A. Pilot Requirements and Operating 

Requirements 

The requirements for a person 

exercising the privileges of a pilot 

certificate or a flight instructor 

certificate are generally contained in 14 

CFR part 61. These regulations govern 

what is required to ‘‘act as pilot in 

command,’’ ‘‘serve as a required 

flightcrew member,’’ or ‘‘conduct flight 

training in an aircraft.’’ The regulations 

in 14 CFR part 91 by contrast contain 

operating requirements that govern how 

the aircraft itself may be operated. The 

term ‘‘operate’’ is broadly defined in 14 

CFR 1.1 as ‘‘use, cause to use or 

authorize to use aircraft, for the purpose 

(except as provided in § 91.13 of this 

chapter) of air navigation including the 

piloting of aircraft, with or without the 

right of legal control (as owner, lessee, 

or otherwise).’’ As such, the 

determination of whether someone is 

operating an aircraft is not contingent 

on ownership, flightcrew status, or the 

receipt of payment for the use of the 

aircraft. 

Although a person may hold the 

appropriate privileges ‘‘to act as pilot in 

command’’ or ‘‘conduct flight training’’ 

under part 61, the regulations in part 91 

may restrict the exercise of those 

privileges in a particular category of 

aircraft under certain conditions, such 

as operations conducted for 

compensation or hire. As defined, the 

term ‘‘operate’’ has broader meaning 

than the general terms used in part 61 

that address ‘‘acting as pilot in 

command’’ or ‘‘exercising the 

privileges’’ of a particular pilot 

certificate. A person may be considered 

to ‘‘operate’’ an aircraft under the § 1.1 

definition without serving as a required 

flightcrew member or manipulating the 

controls of the aircraft. 

As noted, under § 91.315, no person 

may operate a limited category aircraft 

carrying persons or property for 

compensation or hire. Based on the 

plain language of the regulation, the 

FAA’s position as represented in a 2014 

legal interpretation 3 and restated in the 

Warbirds case is that a flight instructor 

who is operating (i.e. ‘‘using’’) a limited 

category aircraft that is carrying a 

person (e.g. the person receiving 

instruction) for compensation (e.g. 

monetary payment) is acting contrary to 

the regulation.4

The regulations governing other 

categories of aircraft (experimental 

aircraft in § 91.319 and primary category 

aircraft in § 91.325) include the same 

language as the prohibition in § 91.315. 

The prohibitions in §§ 91.319 and 

91.325 that mirror the language in 

§ 91.315 must be read to have the same 

meaning.5 As such, a flight instructor 

providing flight training in one of these 

categories of aircraft for compensation is 

acting contrary to the regulations absent 

a letter of deviation authority (LODA), if 

applicable, or exemption. 

B. FAA Guidance on Flight Training for 

Compensation in Experimental Aircraft 

FAA Order 8900.1 contains guidance 

for FAA inspectors that indicates that 

flight training in an experimental 

aircraft for compensation is permissible 

without a LODA under certain 

circumstances.6 The guidance states that 

flight instructors may receive 

compensation for providing flight 

training in an experimental aircraft but 

may not receive compensation for the 

use of the aircraft in which they provide 

that flight training unless they obtain a 

LODA issued under § 91.319(h). 

Likewise, the guidance states that 

owners of experimental aircraft may 

receive and provide compensation for 

flight training in their aircraft without a 

LODA, but owners may not receive 

compensation for the use of their 

aircraft for flight training except in 


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Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Rules and Regulations 36495 

7Although there is no written guidance for 

limited category and primary category aircraft, the 

FAA has applied the same approach to flight 

training for compensation in limited category and 

primary category aircraft. 

8The FAA will revise the guidance in the 8900.1 

to reflect the requirements in the regulation. 

accordance with a LODA issued under 

§ 91.319(h).7

The distinction set forth in FAA 

Order 8900.1 is inconsistent with the 

definition of ‘‘operate’’ in § 1.1 and the 

plain language of § 91.319. Where a 

regulation and guidance conflict, the 

regulation controls.8 Accordingly, 

owners of experimental aircraft and 

flight instructors who have operated 

experimental aircraft for the purpose of 

compensated flight training without 

obtaining a LODA (as allowed by FAA 

guidance) will be required to obtain a 

LODA to remain compliant with the 

regulations. 

III. Process for Compliance 

The FAA acknowledges that the 

disconnect between the regulations and 

the guidance to inspectors has created 

confusion in industry. The FAA also 

recognizes the value of specialized flight 

training in aircraft that hold special 

airworthiness certificates under certain 

conditions. This section provides 

guidance to owners of affected aircraft 

and flight instructors seeking to conduct 

flight training for compensation in these 

aircraft. 

A. Experimental Category Aircraft 

In general, the FAA places limitations 

on the use of aircraft that hold 

experimental airworthiness certificates 

because the airworthiness certification 

requirements for these aircraft impose 

no standard and pose unique 

operational risk to the national airspace 

system. FAA regulations and guidance 

direct that, for most training, pilots 

should use a standard category aircraft 

to accomplish training rather than 

aircraft that hold special airworthiness 

certificates. 

Section 91.319(h), however, permits a 

person to apply for deviation authority 

to conduct flight training in an 

experimental aircraft. Currently, 

individuals seeking to provide flight 

training and receive compensation for 

both the flight training and the use of 

the experimental aircraft must submit 

an application package to the Flight 

Standards District Office (FSDO) in the 

district in which the training will take 

place. Under § 91.319(h)(2), a request for 

deviation authority must contain a 

complete description of the proposed 

operation and justification that 

establishes a level of safety equivalent to 

that provided under the regulations for 

the deviation requested. The FAA 

generally limits LODAs to training that 

can only be accomplished in aircraft 

with experimental certificates and 

directs its inspectors that, with a few 

exceptions, LODAs should not be issued 

to permit flight training in experimental 

aircraft leading toward the issuance of a 

pilot certificate, rating, or operating 

privilege. 

As discussed, FAA guidance 

incorrectly indicates that no LODA is 

necessary if the owner of an 

experimental aircraft provides 

compensation for flight training in the 

owner’s own aircraft and no 

compensation is provided for the use of 

the aircraft itself. The FAA will update 

the guidance to align with the 

regulation, as previously discussed. To 

mitigate disruption for this type of flight 

training, which has been allowed under 

FAA guidance and is viewed as an 

increased safety measure for pilots who 

regularly fly these aircraft, the FAA has 

developed an interim process to issue 

LODAs to the owners of experimental 

aircraft and flight instructors that will 

permit flight training for compensation 

in experimental aircraft when no 

compensation is provided for the use of 

the aircraft. 

The FAA finds that, for owners of 

experimental aircraft seeking flight 

training in the aircraft they will 

regularly fly in the national airspace, the 

standard under § 91.319(h)(2) for 

granting a LODA has been met. The 

FAA has long emphasized the 

importance of pilots being trained and 

checked in the aircraft they will operate. 

Specifically, it is critical that pilots 

understand and are familiar with the 

particular systems, procedures, 

operating characteristics, and 

limitations of the aircraft they will 

operate. This flight training is distinct 

from a situation where an aircraft with 

a special airworthiness certificate is 

‘‘held out’’ broadly for training to 

individuals who pay for both the flight 

training and the use of an aircraft that 

they will not have further access to 

upon completion of LODA training. It is 

also distinct from flight training that can 

be accomplished effectively and safely 

in a standard category aircraft. 

The FAA will accept requests for a 

LODA electronically from an owner of 

an experimental aircraft or flight 

instructor who chooses to conduct 

training in experimental aircraft. 

LODAs, once issued, will define the 

scope of the flight training activity so 

that owners of experimental aircraft may 

receive and provide compensation for 

flight training in their aircraft, as well as 

permit flight instructors to receive 

compensation for flight training in an 

experimental aircraft. These LODAs will 

prohibit owners and flight instructors 

from receiving compensation for any 

other use of the aircraft in which the 

flight training is provided. 

To obtain a LODA, owners of 

experimental aircraft and flight 

instructors providing flight training in 

experimental aircraft may submit a 

request to the following email address: 

9-AVS-AFG-LODA@faa.gov. Applicants 

seeking a LODA through this process 

must provide the following information: 

• Name 

• Address 

• Email address 

• Pilot Certificate Number 

• Flight instructor certificate number (if 

applying as a Certificated Flight 

Instructor (CFI)) 

• Aircraft Registration Number (if 

applying as an owner) 

• Aircraft make/model in which you 

will receive or provide instruction 

• Aircraft home base airport (if applying 

as an owner) 

The FAA will review the information 

submitted and issue a LODA (via email) 

that reflects the conditions and 

limitations contained in this 

notification, as well any additional 

limitations required in accordance with 

§ 91.319(h) and (i). 

Individuals seeking to provide flight 

training and receive compensation for 

both the flight training and the use of 

the aircraft must continue to apply for 

LODAs through their local FSDOs. 

B. Limited Category and Primary 

Category Aircraft 

Section 91.315 does not permit an 

individual to obtain deviation authority 

to conduct flight training for 

compensation or hire in a limited 

category aircraft. Therefore, as 

explained in the 2014 legal 

interpretation, the only way to provide 

flight training for compensation in a 

limited category aircraft is pursuant to 

an exemption from the regulation. 

Because there is no deviation authority 

in § 91.325 for primary category aircraft, 

the owners of these aircraft and flight 

instructors seeking to conduct flight 

training for compensation must likewise 

obtain an exemption from the 

regulation. 

As with the process for issuing 

LODAs to owners and flight instructors, 

the FAA will consider adopting a fasttrack exemption process for owners of 

limited category and primary category 

aircraft seeking to conduct flight 

training for compensation in these 

aircraft. As with experimental category 

aircraft, the FAA will consider granting 

relief for flight training operations when 


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36496 Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Rules and Regulations 

9The FAA cautions, however, that LHFE 

exemptions do not permit operators to allow 

passengers on LHFE flights to manipulate the 

controls of the aircraft under the guise of flight 

training. The flight training relief extends only to 

the LHFE operator’s own flightcrew members for 

the purpose of training those individuals to conduct 

LHFE flights. 

compensation is provided solely for the 

flight training and not the use of the 

aircraft. 

The FAA notes that any operator of a 

limited category aircraft that holds an 

exemption to conduct Living History of 

Flight (LHFE) operations already holds 

the necessary exemption relief to 

conduct flight training for its flightcrew 

members. LHFE exemptions grant relief 

to the extent necessary to allow the 

exemption holder to operate certain 

aircraft for the purpose of carrying 

persons for compensation or hire for 

living history flight experiences. As a 

condition of these exemptions, the 

operators must provide regular flight 

training and checking to flightcrew 

members. As such, these flight training 

operations are considered necessary for 

the operator to conduct the LHFE flights 

themselves.9 The FAA will clarify this 

relief when operators apply for renewal 

of their LHFE exemptions. 

For the safety reasons set forth in this 

notification, the FAA is considering a 

rulemaking that would enable the flight 

training activity discussed in this 

notification without the need to obtain 

an exemption or LODA from the FAA. 

Issued in Washington, DC. 

Ricardo Domingo, 

Executive Director, Flight Standards Service, 

AFX–1. 

[FR Doc. 2021–14765 Filed 7–8–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 210702–0143] 

RIN 0694–AI57 

Addition of Certain Entities to the 

Entity List; Revision of Existing Entry 

on the Entity List; Removal of Entity 

From the Unverified List; and Addition 

of Entity to the Military End-User (MEU) 

List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Export Administration Regulations 

(EAR) by adding thirty-four entities 

under forty-three entries to the Entity 

List. These thirty-four entities have been 

determined by the U.S. Government to 

be acting contrary to the foreign policy 

interests of the United States and will be 

listed on the Entity List under the 

destinations of Canada; People’s 

Republic of China (China); Iran; 

Lebanon; Netherlands (The 

Netherlands); Pakistan; Russia; 

Singapore; South Korea; Taiwan; 

Turkey; the United Arab Emirates 

(UAE); and the United Kingdom. This 

final rule also revises one entry on the 

Entity List under the destination of 

China. This final rule also removes one 

entry from the Entity List under the 

destination of Germany. This final rule 

removes one entity from the Unverified 

List, as a conforming change to this 

same entity being added to the Entity 

List. In addition, this final rule amends 

the EAR by adding one entity to the 

Military End-User (MEU) List under the 

destination of Russia. 

DATES: This rule is effective July 12, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Chair, End-User Review Committee, 

Office of the Assistant Secretary for 

Export Administration, Bureau of 

Industry and Security, Department of 

Commerce, Phone: (202) 482–5991, 

Email: ERC@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Entity List (supplement no. 4 to 

part 744 of the EAR) identifies entities 

for which there is reasonable cause to 

believe, based on specific and 

articulable facts, that the entities have 

been involved, are involved, or pose a 

significant risk of being or becoming 

involved in activities contrary to the 

national security or foreign policy 

interests of the United States. The EAR 

(15 CFR parts 730–774) impose 

additional license requirements on, and 

limit the availability of most license 

exceptions for, exports, reexports, and 

transfers (in-country) to listed entities. 

The license review policy for each listed 

entity is identified in the ‘‘License 

Review Policy’’ column on the Entity 

List, and the impact on the availability 

of license exceptions is described in the 

relevant Federal Register document 

adding entities to the Entity List. BIS 

places entities on the Entity List 

pursuant to part 744 (Control Policy: 

End-User and End-Use Based) and part 

746 (Embargoes and Other Special 

Controls) of the EAR. 

The ‘Military End-User’ (MEU) List 

(supplement no. 7 to part 744 of the 

EAR) identifies entities that have been 

determined by the End-User Review 

Committee (ERC) to be ‘military end 

users’ pursuant to § 744.21 of the EAR. 

That section imposes additional license 

requirements on, and limits the 

availability of, most license exceptions 

for, exports, reexports, and transfers (incountry) to listed entities on the MEU 

List, as specified in supplement no. 7 to 

part 744 and § 744.21 of the EAR. 

Entities may be listed on the MEU List 

under the destinations of Burma, China, 

Russia, or Venezuela. The license 

review policy for each listed entity is 

identified in the introductory text of 

supplement no. 7 to part 744 and in 

§ 744.21(b) and (e). The MEU List 

includes introductory text, which 

specifies the scope of the license 

requirements, limitations on the use of 

EAR license exceptions, and the license 

review policy that applies to the 

entities. These requirements are also 

reflected in § 744.21, but for ease of 

reference, these are also included in the 

introductory text of the supplement. 

The Unverified List, found in 

supplement no. 6 to part 744 of the 

EAR, contains the names and addresses 

of foreign persons who are or have been 

parties to a transaction, as such parties 

are described in § 748.5 of the EAR, 

involving the export, reexport, or 

transfer (in-country) of items subject to 

the EAR, and whose bona fides BIS has 

been unable to verify through an enduse check. BIS may add persons to the 

Unverified List when BIS or federal 

officials acting on BIS’s behalf have 

been unable to verify a foreign person’s 

bona fides because an end-use check, 

such as a pre-license check or a postshipment verification, cannot be 

completed satisfactorily for reasons 

outside the U.S. Government’s control. 

The ERC, composed of representatives 

of the Departments of Commerce 

(Chair), State, Defense, Energy and, 

where appropriate, the Treasury, makes 

all decisions regarding additions to, 

removals from, or other modifications to 

the Entity List and MEU List. The ERC 

makes all decisions to add an entry to 

the Entity List and MEU List by majority 

vote and makes all decisions to remove 

or modify an entry by unanimous vote. 

In addition, when an entity listed on the 

Unverified List is being added to the 

Entity List based on a majority vote of 

the ERC, the ERC’s determination to add 

that entity to the Entity List constitutes 

interagency approval for a conforming 

change to remove the same entity from 

the Unverified List in supplement no. 6 

to part 744 of the EAR. 


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