[Federal Register Volume 87, Number 105 (Wednesday, June 1, 2022)]
[Rules and Regulations]
[Pages 32983-32987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11761]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 743, and 748

[Docket No. 220524-0120]
RIN 0694-AI89


Adoption of Congressional Notification Requirement for Certain 
Semiautomatic Firearms Exports Under the Export Administration 
Regulations (EAR)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this final rule, the Bureau of Industry and Security (BIS) 
is amending the Export Administration Regulations (EAR) to add a new 
section to the EAR to adopt a congressional notification requirement 
for certain license applications of semiautomatic firearms meeting 
certain value and destination requirements. This rule does not change 
the interagency license process for these firearms or how license 
applicants currently structure or generally apply for BIS licenses.

DATES: This rule is effective July 18, 2022.

FOR FURTHER INFORMATION CONTACT: Steven Clagett, Office of 
Nonproliferation Controls and Treaty Compliance, Nuclear and Missile 
Technology Controls Division, tel. (202) 482-1641 or email 
<a href="/cdn-cgi/l/email-protection#0a797e6f7c6f642469666b6d6f7e7e4a686379246e6569246d657c"><span class="__cf_email__" data-cfemail="b6c5c2d3c0d3d898d5dad7d1d3c2c2f6d4dfc598d2d9d598d1d9c0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Background

A. Introduction

    In this final rule, the Bureau of Industry and Security (BIS) is 
amending the Export Administration Regulations (EAR) to add new Sec.  
743.6, Prior notifications to Congress of exports of semiautomatic 
firearms, to adopt a congressional notification requirement for certain 
license applications having semiautomatic firearms that are (i) 
classified under Export Control Classification Number (ECCN) 0A501.a 
and (ii) valued at $4 million or more. The congressional notification 
requirement will not apply if the total

[[Page 32984]]

value of the application is valued at $4 million or more but contains 
0A501.a semiautomatic firearms valued at less than $4 million. Further, 
the congressional notification requirement will not apply to license 
applications if the 0A501.a semiautomatic firearms are destined for 
countries in Country Group A:5 or A:6 (see supplement no.1 to part 740 
of the EAR), with the exception of Mexico, South Africa, and Turkey. 
The congressional notification requirement will also not apply to 
exports to personnel and agencies of the U.S. Government under License 
Exception GOV (Sec.  740.11(b) of the EAR) or when for the official use 
by an agency of the North Atlantic Treaty Organization (NATO).
    This congressional notification requirement is warranted because of 
the unique nature of 0A501.a semiautomatic firearms and their prior 
jurisdiction under the International Traffic in Arms Regulations 
(ITAR). While the Commerce Control List (CCL) has long controlled 
certain firearms, the firearms subject to this congressional 
notification requirement are often used by military and law enforcement 
personnel, as well as for recreational purposes. Those items were 
transferred to BIS's jurisdiction in a final rule published on January 
23, 2020 (85 FR 4136) identifying firearms, guns, ammunition and 
related articles that no longer warranted control on the U.S. Munitions 
List and were transferred to the CCL. Prior to the March 9, 2020 
effective date for that rule, 0A501.a semiautomatic firearms required 
congressional notification pursuant to Sec.  123.15(a)(3) of the ITAR 
for licenses in the amount of $1 million or more. Through publication 
of this rule, BIS is adopting congressional notifications based on the 
criteria in the new Sec.  743.6 of the EAR for certain export licenses 
of these items.
    While the ITAR's congressional notification requirement is 
informative for developing new Sec.  743.6 of the EAR, BIS is utilizing 
a different scope for this congressional notification requirement. 
Under the EAR, exporters can make a good faith estimate of the quantity 
and value of exports needed over the standard four-year validity period 
of a BIS license. This can include a license covering multiple purchase 
orders or anticipated purchase orders. Under the ITAR, DSP-5 licenses 
are generally tied to a single purchase order. To account for these 
differences, BIS is using $4 million as the value for the congressional 
notification requirement under Sec.  743.6, which is an equivalent 
annual average of $1 million in potential exports per year during the 
validity period of the license. Essentially, the value threshold in 
Sec.  743.6 will be four times the value of the ITAR's value threshold 
in Sec.  123.15(a)(3) reflecting the difference in licensing 
requirements. Additionally, because these semiautomatic firearms are 
less sensitive than the fully-automatic firearms that continue to be 
controlled under USML Category I of the ITAR, the congressional 
notification requirement will not apply to a group of allied countries.
    This rule does not change the interagency license review process 
for these firearms or how license applicants currently structure or 
generally apply for BIS licenses. License applicants may continue to 
apply for prospective sales, so long as they do not break-up contract 
values in order to come under the $4 million dollar threshold specified 
in Sec.  743.6 and are able to identify the items to be exported, 
country where the items will be exported, parties to the transaction 
and end use of the items. This rule does not change how applicants 
apply for licenses, except for requiring new support documents for 
licenses that meet the criteria in Sec.  743.6 and as described further 
below under new paragraph (bb) in supplement no. 2 to part 748.
    The congressional notification will be submitted for those license 
applications for which the interagency review process has resulted in a 
recommendation to approve, which is consistent with how BIS has managed 
the process for ``600 series Major Defense Equipment'' congressional 
notification process. The new congressional notification requirement 
will complement the existing export control requirements for 0A501.a 
semiautomatic firearms, which are subject to a worldwide license 
requirement by BIS, import certificate requirements used by foreign 
countries to ensure that firearms to be exported are authorized by the 
respective foreign government of the recipient, interagency review 
process with the Departments of Defense and State, and as well as BIS's 
extensive enforcement and compliance efforts to ensure that exports are 
made in accordance with U.S. national security and foreign policy 
interests.

B. Revisions to EAR

    This rule makes the following changes to the EAR for the adoption 
of congressional notification requirement for certain semiautomatic 
firearms exports.
    This rule adds Sec.  743.6 Prior notifications to Congress of 
exports of certain firearms. This new section is modeled on the same 
type of congressional notification process as followed under Sec.  
743.5 for ``600 Major Defense Equipment.'' New Sec.  743.6 consists of 
four paragraphs.
    Paragraph (a) (General Requirement) specifies that any license 
application for the export of semiautomatic firearms controlled under 
ECCN 0A501.a (which includes semiautomatic rifles and semiautomatic 
pistols) will be notified to Congress as provided in Sec.  743.6. 
Paragraph (a) includes two exclusions under paragraphs (a)(1) to (2) 
from the congressional notification requirement. Paragraph (a)(1) 
excludes exports to personnel and agencies of the U.S. Government under 
License Exception GOV (Sec.  740.11(b) of the EAR). Paragraph (a)(2) 
excludes applications for official use by an agency of NATO.
    New paragraph (b) specifies the country scope for these 
congressional notifications. Paragraph (b) specifies that BIS will 
notify Congress prior to issuing a license authorizing the export of 
items to a country outside the countries listed in Country Group A:5 or 
A:6, with the exception of Mexico, South Africa, or Turkey. Paragraph 
(b) specifies that the congressional requirement will apply when the 
commodities are sold under a contract or are otherwise part of an 
export transaction that includes $4 million or more of semiautomatic 
firearms controlled by ECCN 0A501.a. For these reasons, BIS does not 
anticipate any change in the number of license applications received by 
BIS because license applicants are required to follow the same process 
they were previously in determining how to structure a license 
application for these semiautomatic firearms controlled under ECCN 
0A501.a.
    Paragraph (c) provides guidance on additional information that 
license applicants will need to provide as part of the license 
application process. Importantly, this rule does not require a purchase 
order to apply for a license. However, if the license application 
includes 0A501.a semiautomatic firearms subject to a signed contract 
(which may be a purchase order), paragraph (c) specifies the signed 
contract would need to be included as a support document for the 
license application. Paragraph (c) further specifies that a written 
explanation from the applicant will be required when the export does 
not include a contract and whether the application is supported by a 
signed contract or a written explanation by the applicant, an applicant 
will need to include a statement of the value of the semiautomatic 
firearms controlled by ECCN 0A501.a to be exported for any

[[Page 32985]]

proposed export described in paragraph (b) of Sec.  743.6.
    This final rule also adds two anti-circumvention sentences to the 
end of paragraph (c) to make license applicants aware that they are 
prohibited from splitting license applications in order to try to 
circumvent the congressional notification process. This rule specifies 
that any activity intended to circumvent notification requirements is 
prohibited. The last sentence this rule adds to paragraph (c) provides 
illustrative examples of such prohibited activities, such as the 
splitting or structuring of contracts to avoid exceeding applicable 
notification dollar value limits.
    The dollar value threshold of $4 million or more will only be based 
on the portion of the license application for semiautomatic firearms 
controlled by ECCN 0A501.a. Paragraph (c) specifies that license 
applications for semiautomatic firearms controlled by ECCN 0A501.a may 
include other nonautomatic firearms, shotguns, other 0x5zz items, or 
other items subject to the EAR. As noted above, BIS does not intend for 
license applicants to change their behavior for how they are currently 
structuring licenses, so this rule adds text to paragraph (c) to make 
it clear to license applicants that they may and are encouraged to 
continue with their current license application practices of including 
other firearms related items on license applications. However, to make 
this process more manageable for BIS, this rule specifies under 
paragraph (c) that the applicant must clearly identify the 
semiautomatic firearms controlled by ECCN 0A501.a. This requirement 
will assist BIS in identifying whether the license application requires 
congressional notification under Sec.  743.6 and identifying the 
information that will need to be reported to Congress. As a conforming 
change to paragraph (c), this final rule also adds a new paragraph (bb) 
to supplement no. 2 to part 748--Unique Application and Submission 
Requirements of the EAR, so license applicants are aware of the 
additional support document requirements specified under Sec.  
743.6(c).
    Finally, this final rule adds paragraph (d) (Additional 
information), to provide an email that license applicants may use to 
ask questions regarding new Sec.  743.6. As noted above, this final 
rule adds a new paragraph (bb) (Semiautomatic firearms controlled under 
ECCN 0A501.a) to supplement no. 2 to part 746 to assist public 
understanding of the requirement in Sec.  743.6(c). New paragraph (bb) 
specifies that for export license applications that require prior 
notifications to Congress of exports of semiautomatic firearms 
controlled under ECCN 0A501.a under the criteria of Sec.  743.6, the 
license applicant must include the information specified in Sec.  
743.6(c) of the EAR. This rule includes a parenthetical phrase in new 
paragraph (bb) to cross reference applicants back to Sec.  743.6(c).
    This rule also adds a new general restriction on the use of EAR 
license exceptions under Sec.  740.2 Restrictions on all license 
exceptions by adding paragraph (a)(23). New paragraph (a)(23) specifies 
exports of semiautomatic firearms controlled by ECCN 0A501.a sold under 
a contract that includes $4 million or more of such items are not 
eligible for any license exception other than exports to personnel and 
agencies of the U.S. Government under License Exception GOV (Sec.  
740.11(b) of the EAR), for official use by an agency of NATO, or 
destined to a country listed in Country Groups A:5 or A:6 (see 
supplement no. 1 to part 740 of the EAR) except Mexico, South Africa, 
or Turkey. BIS added this restriction consistent with a similar license 
exception restriction that exists in Sec.  740.2(a)(15) and (16) for 
``600 Series Major Defense Equipment'' that requires congressional 
notification. New paragraph (a)(23) will ensure all exports that 
require a congressional notification under Sec.  743.6 will require the 
submission of a BIS license with limited exceptions.
    BIS notes that the vast majority of firearms exported require a BIS 
license to be obtained. The EAR license exceptions that are available 
for semiautomatic firearms (as well as other firearms under 0A501.a and 
.b) are limited and the terms of those license exceptions, such as 
License Exception BAG (limited to three individually owned firearms), 
License Exception TMP (exporting a firearm to a trade show or sending 
to servicing or repair under paragraphs (a)(5) or (a)(6) is limited to 
75 firearms), or License Exception RPL, impose additional conditions on 
the use of license exceptions. In addition, the likelihood of a 
semiautomatic firearm controlled under 0A501.a being exported in the 
limited quantity required under the license exceptions described above 
and meeting or exceeding the $4 million threshold would be extremely 
unlikely, unless each firearm was valued at a very high rate or there 
was some type of unusual circumstance, such as where a U.S. firearms 
manufacture had a defective product line that was exported to a 
distributor and all the firearms needed to be returned for warranty 
work for subsequent export. The only EAR license exception where a high 
dollar value export is likely would be under License Exception GOV for 
the United States Government under paragraphs (b)(2)(ii), but that is 
already excluded from the congressional notification requirement 
because of the U.S, government end user.

C. Clarification to Existing Requirement for ``600 Series Major Defense 
Equipment''

    This rule also adds a new paragraph (aa) (``600 Series Major 
Defense Equipment'') to supplement no. 2 to part 748 to assist public 
understanding of the requirement in Sec.  743.5(d). The longstanding 
requirement in Sec.  743.5(d) was added to the EAR on April 16, 2013 
(78 FR 22722), but BIS determined it would still be beneficial to 
license applicants to include a new paragraph (aa) in supplement no. 2 
to part 748 to make it easier to find this requirement, similar to what 
is described above for new paragraph (bb). New paragraph (aa) specifies 
that for export license applications that require prior notifications 
to congress of exports of ``600 series major defense equipment'' under 
the criteria of Sec.  743.5, the license applicant must include the 
information specified in Sec.  743.5(d) of the EAR. This rule includes 
a parenthetical phrase to cross reference applicants back to Sec.  
743.5(d).
    Lastly, as a clarification on the correct email address to use for 
``600 Series Major Defense Equipment,'' this rule removes the email 
address of <a href="/cdn-cgi/l/email-protection#8be9e2f8a5e8e4e6fbe7e2eae5e8eecbe9e2f8a5efe4e8a5ece4fd"><span class="__cf_email__" data-cfemail="bad8d3c994d9d5d7cad6d3dbd4d9dffad8d3c994ded5d994ddd5cc">[email protected]</span></a> in Sec.  743.5(d) and adds a new 
email address of <a href="/cdn-cgi/l/email-protection#3d505e59625e52504d51545c535e587d5f544e1359525e135a524b"><span class="__cf_email__" data-cfemail="bed3dddae1ddd1d3ced2d7dfd0dddbfedcd7cd90dad1dd90d9d1c8">[email protected]</span></a> in its place.
Savings Clause
    For the changes being made in this final rule, shipments of items 
removed from eligibility for a License Exception or export, reexport, 
or transfer (in-country) without a license (NLR) as a result of this 
regulatory action that were en route aboard a carrier to a port of 
export, reexport, or transfer (in-country), on July 18, 2022, pursuant 
to actual orders for export, reexport, or transfer (in-country) to or 
within a foreign destination, may proceed to that destination under the 
previous eligibility for a License Exception or export, reexport, or 
transfer (in-country) without a license (NLR).
    Only license applications received on or after July 18, 2022 may be 
subject to congressional notification under Sec.  743.6 of the EAR.

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain

[[Page 32986]]

National Defense Authorization Act for Fiscal Year 2019, which included 
the Export Control Reform Act of 2018 (ECRA) (codified, as amended, at 
50 U.S.C. Sections 4801-4852). ECRA provides the legal basis for BIS's 
principal authorities and serves as the authority under which BIS 
issues this rule.

Rulemaking Requirements

    1. This final rule has been designated a ``significant regulatory 
action'', under Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to or be subject to a penalty for failure to comply 
with a collection of information, subject to the requirements of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless 
that collection of information displays a currently valid Office of 
Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and commodity classifications, and 
carries a burden estimate of 29.6 minutes for a manual or electronic 
submission for a total burden estimate of 33,133 hours. Total burden 
hours associated with the PRA and OMB control number 0694-0088 are 
expected to increase as a result of this rule because of the new 
support document requirement for license applications that require 
congressional notification pursuant to the Sec.  743.6 that this rule 
adds to supplement no. 2 to part 748 under paragraph (bb) 
(Semiautomatic firearms controlled under ECCN 0A501.a). BIS estimates 
that sixty of the current license applications that are submitted to 
BIS annually will require the support documents specified in paragraph 
(bb). Specifically, for export license applications that require prior 
notifications to congress of exports of semiautomatic firearms 
controlled under ECCN 0A501.a under the criteria of Sec.  743.6, the 
exporter must include a copy of the signed contract or, if there is no 
contract, a written explanation from the applicant (including a 
statement of the value of the firearms controlled by ECCN 0A501.a to be 
exported) for any proposed export described in Sec.  743.6(b) of the 
EAR. License applications for semiautomatic firearms controlled by ECCN 
0A501.a may include other nonautomatic firearms, shotguns, other 0x5zz 
items, or other items subject to the EAR, but the applicant must 
clearly identify the semiautomatic firearms controlled by ECCN 0A501.a. 
This support document requirement will make this process more 
manageable for BIS by having the applicant clearly identify the 
semiautomatic firearms controlled on a license application. BIS 
estimates the burden hours associated with this collection will 
increase by 20 hours (i.e., 60 existing license applications that will 
now require these additional support documents x 20 minutes per 
response) for a total estimated cost increase of $1,800 (i.e., 60 hours 
x $30 per hour). The $30 per hour cost estimate for OMB control number 
0694-0088 is consistent with the salary data for export compliance 
specialists currently available through glassdoor.com (glassdoor.com 
estimates that an export compliance specialist makes $55,280 annually, 
which computes to roughly $26.58 per hour).
    Lastly, this rule also adds a new paragraph (aa) (``600 Series 
Major Defense Equipment'') to supplement no. 2 to part 748 to assist 
public understanding of the requirement in Sec.  743.5(d). The 
requirement in Sec.  743.5(d) was added to the EAR on April 16, 2013 
(78 FR 22722), but BIS determined it would still be beneficial to 
license applicants to also include a new paragraph (aa) in supplement 
no. 2 to part 748 to make it easier to find this requirement. BIS does 
not anticipate this change will result in a change in the burden hours 
under this collection because BIS would estimate no more than one 
existing license application per year would require this support 
document.
    BIS is in the process of updating this information collection to 
account for the increase in burden hours and costs posed by this rule. 
Any comments regarding this collection of information, including 
suggestions for reducing the burden, may be submitted online at https://www.reginfo.gov/public/do/PRAMain. Find this particular information 
collection by using the search function and entering the title of the 
collection or the OMB Control Number.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of ECRA, this action is exempt from the 
Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for 
notice of proposed rulemaking, opportunity for public participation, 
and delay in effective date. While section 1762 of ECRA provides 
sufficient authority for such an exemption, this action is also 
independently exempt from these APA requirements because it involves a 
military or foreign affairs function of the United States (5. U.S.C. 
553(a)(1)).
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required and none 
has been prepared.

List of Subjects

15 CFR Part 740

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

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 748

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

    For the reasons stated in the preamble, parts 740, 743, and 748 of 
the Export Administration Regulations (15 CFR parts 730-774) are 
amended as follows:

PART 740--LICENSE EXCEPTIONS

0
1. The authority citation for 15 CFR part 740 continues to read as 
follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783.


0
2. Section 740.2 is amended by adding paragraph (a)(23) to read as 
follows:


Sec.  740.2  Restrictions on all License Exceptions.

    (a) * * *
    (23) Exports of semiautomatic firearms controlled by ECCN 0A501.a 
sold under a contract or otherwise part of an export that includes 
$4,000,000 or more of such items are not eligible for any license 
exceptions except to personnel and agencies of the U.S. Government 
under License Exception GOV (Sec.  740.11(b) of the EAR), for official 
use by an agency of NATO, or where a license exception would otherwise 
be available for the export of such items to a country listed in 
Country Groups A:5 or A:6 (see supplement no. 1 to part 740 of the EAR) 
except Mexico, South Africa, or Turkey.
* * * * *

[[Page 32987]]

PART 743--SPECIAL REPORTING AND NOTIFICATION

0
3. The authority citation for 15 CFR part 743 is revised to read as 
follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 223; 78 FR 
16129.


0
4. Section 743.5(e) is amended by removing 
``<a href="/cdn-cgi/l/email-protection#a9cbc0da87cac6c4d9c5c0c8c7cacce9cbc0da87cdc6ca87cec6df"><span class="__cf_email__" data-cfemail="1a787369347975776a76737b74797f5a787369347e7579347d756c">[email protected]</span></a>'' and adding in its place 
``<a href="/cdn-cgi/l/email-protection#aec3cdcaf1cdc1c3dec2c7cfc0cdcbeeccc7dd80cac1cd80c9c1d8"><span class="__cf_email__" data-cfemail="84e9e7e0dbe7ebe9f4e8ede5eae7e1c4e6edf7aae0ebe7aae3ebf2">[email protected]</span></a>.''

0
5. Section 743.6 is added to read as follows:


Sec.  743.6  Prior notifications to Congress of exports of certain 
semiautomatic firearms.

    (a) General requirement. Applications to export semiautomatic 
firearms controlled by ECCN 0A501.a will be notified to Congress as 
provided in this section before licenses for such items are issued, 
except as specified in paragraphs (a)(1) to (2) of this section.
    (1) Exports of semiautomatic firearms controlled by ECCN 0A501.a to 
personnel and agencies of the U.S. Government under License Exception 
GOV (Sec.  740.11(b) of the EAR) do not require such notification.
    (2) Exports of semiautomatic firearms controlled by ECCN 0A501.a 
for official use by an agency of NATO do not require such notification.
    (b) Notification criteria. Unless excluded in paragraphs (a)(1) to 
(2) of this section, BIS will notify Congress prior to issuing a 
license authorizing the export of items to Mexico, South Africa, or 
Turkey or any other country not listed in Country Group A:5 or A:6 (see 
supplement no.1 to part 740 of the EAR) if the items are sold under a 
contract or are otherwise part of an export transaction that includes 
$4,000,000 or more of semiautomatic firearms controlled by ECCN 
0A501.a.
    (c) License application information. In addition to information 
required on the application, the exporter must include a copy of the 
signed contract or, if there is no contract, a written explanation from 
the applicant (including a statement of the value of the firearms 
controlled by ECCN 0A501.a to be exported) for any proposed export 
described in paragraph (b) of this section. License applications for 
semiautomatic firearms controlled by ECCN 0A501.a may include other 
nonautomatic firearms, shotguns, other 0x5zz items, or other items 
subject to the EAR, but the applicant must clearly identify the 
semiautomatic firearms controlled by ECCN 0A501.a. The applicant 
clearly distinguishing the semiautomatic firearms controlled by ECCN 
0A501.a from any other items on the license application will assist BIS 
in assessing whether the license application requires congressional 
notification under this section and identifying the information that 
will need to be reported to Congress. Any activity intended to 
circumvent notification requirements is prohibited. Such devices 
include, but are not limited to, the splitting or structuring of 
contracts to avoid exceeding applicable notification dollar value 
limits described in paragraph (a) of this section.
    (d) Additional information. For questions on this section, you may 
contact the Nuclear and Missile Technology Controls Division, Guns and 
Ammunition licensing group at <a href="/cdn-cgi/l/email-protection#294f405b4c485b445a6a67694b405a074d464a074e465f"><span class="__cf_email__" data-cfemail="92f4fbe0f7f3e0ffe1d1dcd2f0fbe1bcf6fdf1bcf5fde4">[email protected]</span></a>.

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

0
6. The authority citation for 15 CFR part 748 is revised to read as 
follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 6, 2021, 86 FR 43901 (August 10, 2021).


0
7. Supplement No. 2 to part 748 (Unique Application and Submission 
Requirements) is amended by adding paragraphs (aa) and (bb) to read as 
follows:

Supplement No. 2 to Part 748--Unique Application and Submission 
Requirements

* * * * *
    (aa) ``600 Series Major Defense Equipment.'' For license 
applications that require prior notifications to Congress of exports of 
``600 series major defense equipment'' pursuant to Sec.  743.5, the 
exporter must include a copy of the signed contract (including a 
statement of the value of the ``600 Series Major Defense Equipment'' to 
be exported under the contract). (See Sec.  743.5(d) of the EAR)
    (bb) Semiautomatic firearms controlled under ECCN 0A501.a. For 
export license applications that require prior notifications to 
congress of exports of semiautomatic firearms controlled under ECCN 
0A501.a under the criteria of Sec.  743.6, the exporter must include a 
copy of the signed contract or, if there is no contract, a written 
explanation from the applicant (including a statement of the value of 
the firearms controlled by ECCN 0A501.a to be exported). License 
applications for semiautomatic firearms controlled by ECCN 0A501.a may 
include other nonautomatic firearms, shotguns, other 0x5zz items, or 
other items subject to the EAR, but the applicant must clearly identify 
the semiautomatic firearms controlled by ECCN 0A501.a.

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2022-11761 Filed 5-31-22; 8:45 am]
BILLING CODE 3510-33-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>