Federal Register / Vol. 81, No. 26 / Tuesday, February 9, 2016 / Proposed Rules 6797 

List of Items Controlled 

* * * * * 

Items: 

a. Materials not elsewhere specified in 

the CCL or on the USML and ‘‘specially 

designed’’ for commodities enumerated 

or otherwise described in USML 

Category XIX or ECCN 9A619 (except 

9A619.y). 

Note 1: Materials enumerated elsewhere in 

the CCL, such as in a CCL Category 1 ECCN, 

are controlled pursuant to the controls of the 

applicable ECCN. 

Note 2: Materials ‘‘specially designed’’ for 

both an engine enumerated in USML 

Category XIX and an engine enumerated in 

ECCN 9A619 are subject to the controls of 

this ECCN 9C619. 

b. [Reserved] 

■ 13. In ECCN 9E619, revise the 

‘‘Related Controls’’ paragraph in the 

‘‘List of Items Controlled’’ section to 

read as follows: 

9E619 ‘‘Technology’’ ‘‘required’’ for 

the ‘‘development,’’ ‘‘production,’’ 

operation, installation, 

maintenance, repair, overhaul, or 

refurbishing of military gas turbine 

engines and related commodities 

controlled by 9A619, equipment 

controlled by 9B619, materials 

controlled by 9C619, or software 

controlled by 9D619 (see List of 

Items Controlled) 

* * * * * 

List of Items Controlled 

Related Controls: Technical data 

directly related to articles enumerated 

or otherwise described in USML 

Category XIX are subject to the control 

of USML Category XIX(g). 

* * * * * 

Dated: January 29, 2016. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2016–02591 Filed 2–8–16; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF STATE 

22 CFR Part 121 

[Public Notice: 9395] 

RIN 1400–AD89 

Amendment to the International Traffic 

in Arms Regulations: U.S. Munitions 

List Categories VIII and XIX 

AGENCY: Department of State. 

ACTION: Proposed rule. 

SUMMARY: As part of the President’s 

Export Control Reform (ECR) effort, the 

Department of State proposes to amend 

the International Traffic in Arms 

Regulations (ITAR) to revise Categories 

VIII (aircraft and related articles) and 

XIX (gas turbine engines and associated 

equipment) of the U.S. Munitions List 

(USML) to describe more precisely the 

articles warranting control on the 

USML. The revisions contained in this 

rule are part of the Department of State’s 

retrospective plan under E.O. 13563. 

DATES: The Department of State will 

accept comments on this proposed rule 

until March 25, 2016. 

ADDRESSES: Interested parties may 

submit comments within 45 days of the 

date of publication by one of the 

following methods: 

• Email: 

DDTCPublicComments@state.gov with 

the subject line, ‘‘ITAR Amendment— 

Categories VIII and XIX.’’ 

• Internet: At www.regulations.gov, 

search for this notice by using this rule’s 

RIN (1400–AD89). 

Comments received after that date 

will be considered if feasible, but 

consideration cannot be assured. Those 

submitting comments should not 

include any personally identifying 

information they do not wish to be 

made public or information for which a 

claim of confidentiality is asserted, 

because those comments and/or 

transmittal emails will be made 

available for public inspection and 

copying after the close of the comment 

period via the Directorate of Defense 

Trade Controls Web site at 

www.pmddtc.state.gov. Parties who 

wish to comment anonymously may do 

so by submitting their comments via 

www.regulations.gov, leaving the fields 

that would identify the commenter 

blank and including no identifying 

information in the comment itself. 

Comments submitted via 

www.regulations.gov are immediately 

available for public inspection. 

FOR FURTHER INFORMATION CONTACT: Mr. 

C. Edward Peartree, Director, Office of 

Defense Trade Controls Policy, 

Department of State, telephone (202) 

663–2792; email 

DDTCPublicComments@state.gov. 

ATTN: ITAR Amendment—USML 

Categories VIII and XIX. 

SUPPLEMENTARY INFORMATION: The 

Directorate of Defense Trade Controls 

(DDTC), U.S. Department of State, 

administers the International Traffic in 

Arms Regulations (ITAR) (22 CFR parts 

120–130). The items subject to the 

jurisdiction of the ITAR, i.e., ‘‘defense 

articles,’’ are identified on the ITAR’s 

U.S. Munitions List (USML) (22 CFR 

121.1). With few exceptions, items not 

subject to the export control jurisdiction 

of the ITAR are subject to the 

jurisdiction of the Export 

Administration Regulations (‘‘EAR,’’ 15 

CFR parts 730–774, which includes the 

Commerce Control List (CCL) in 

Supplement No. 1 to Part 774), 

administered by the Bureau of Industry 

and Security (BIS), U.S. Department of 

Commerce. Both the ITAR and the EAR 

impose license requirements on exports 

and reexports. Items not subject to the 

ITAR or to the exclusive licensing 

jurisdiction of any other set of 

regulations are subject to the EAR. 

USML List Review 

On March 2, 2015, the Department 

published a Notice of Inquiry requesting 

public comment on USML Categories 

VIII and XIX (see 80 FR 11314). This 

Notice of Inquiry initiated a review of 

these categories to ensure that they are 

clear, do not inadvertently control items 

in normal commercial use, account for 

technological developments, and 

properly implement the national 

security and foreign policy objectives of 

the reform effort. The Department will 

similarly review each of the various 

USML categories that have been revised 

in the context of the ECR initiative. 

In response to this Notice of Inquiry, 

the Department received 25 comments 

from the public. These comments 

offered proposals for modifications to 

the phrasing of regulatory text in USML 

Category VIII and Category XIX. The 

public comments were reviewed and 

considered by the Department and other 

agencies. Where the recommended 

changes added to the clarity of the 

regulation and were consistent with 

ECR objectives, the Department 

accepted them. 

All references to the USML in this 

rule are to the list of defense articles 

that are controlled for the purpose of 

export or temporary import pursuant to 

the ITAR, and not to the defense articles 

on the USML that are controlled by the 

Bureau of Alcohol, Tobacco, Firearms 

and Explosives (ATF) for the purpose of 

permanent import under its regulations 

(see 27 CFR part 447). Pursuant to 

§ 38(a)(1) of the Arms Export Control 

Act (AECA), all defense articles 

controlled for export or import are part 

of the USML under the AECA. For the 

sake of clarity, the list of defense articles 

controlled by ATF for the purpose of 

permanent import is the United States 

Munitions Import List (USMIL). The 

transfer of defense articles from the 

ITAR’s USML to the EAR’s CCL for the 

purpose of export control does not affect 

the list of defense articles controlled on 

the USMIL under the AECA for the 

purpose of permanent import. 

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6798 Federal Register / Vol. 81, No. 26 / Tuesday, February 9, 2016 / Proposed Rules 

Revision of Category VIII 

This proposed rule revises USML 

Category VIII, covering aircraft and 

related articles, to describe more 

precisely the articles warranting control 

on the USML. 

Paragraph (a) is revised to clarify that 

the controls for all paragraphs are 

applicable ‘‘whether manned, 

unmanned, remotely piloted, or 

optionally piloted,’’ by modifying 

paragraph (a)(5) to clarify the features 

meriting USML control, and by deleting 

paragraph (a)(6) and placing it into 

reserve, because the relevant control 

would be subsumed by paragraph (a)(5). 

Paragraphs (a)(7) and (a)(8) are modified 

to clarify the features meriting USML 

control. Paragraphs (a)(11) and (a)(13) 

are deleted and placed into reserve. 

Paragraph (a)(14) is modified to exclude 

L–100 aircraft manufactured prior to 

2013 from the scope of control. The 

Note to paragraph (a) is revised to 

incorporate technical corrections. 

Paragraph (d) is modified to delete the 

‘‘ship-based’’ control parameter and to 

clarify the intent and scope of the 

control. 

Notes 1 and 3 to paragraph (f) are 

modified to incorporate clarifying 

language. 

Several changes are proposed within 

paragraph (h). Paragraph (h)(1) is 

modified to delete the references to 

‘‘equipment’’ in order to resolve any 

doubt that all production and test 

equipment specially designed for USML 

Category VIII articles presently is 

subject to the EAR under Export Control 

Classification Number (ECCN) 9B610. 

This rule proposes to move specific 

types of production and test equipment 

for specific aircraft identified in (h)(1) to 

the control of the USML because they 

are of a nature that inherently reveals 

technical data directly related to the 

defense article. The Department 

requests public comment on whether 

the production and test equipment 

identified in revised paragraph (h)(30) 

of the proposed revisions to USML 

Category VIII per se reveal technical 

data directly related to a defense article. 

In addition, paragraph (h)(1) is 

revised to update the list of subject 

platforms. The Note to paragraph (h)(1) 

is modified to incorporate technical 

corrections and to enhance the clarity of 

the note. Paragraph (h)(2) is revised to 

focus the scope of control on certain 

rotorcraft gearboxes meeting specific 

technical parameters, and a note to 

paragraph (h)(2) is added to clarify 

certain terminology used therein. 

Paragraph (h)(4)(ii) is modified to clarify 

the scope of control. Paragraph (h)(5) is 

updated to add the words ‘‘On-aircraft’’ 

in order to clarify the scope of control. 

Paragraph (h)(7) is modified to clarify 

the scope of control and to include 

control over specially designed parts 

and components of the subject flight 

control systems. Paragraph (h)(8) is 

modified to clarify the meaning of 

‘‘threat-adaptive autonomous flight 

control systems.’’ Paragraph (h)(10) is 

modified to enhance the clarity of the 

control text. Paragraph (h)(13) is deleted 

and placed into reserve. Paragraph 

(h)(16) is modified to incorporate a 

technical correction. Paragraph (h)(18) 

is modified to control specially 

designed parts and components of the 

subject systems. Paragraph (h)(19) is 

modified to remove reference to ECCN 

9A610. 

Current paragraphs (h)(23) through 

(h)(26) are placed into reserve, with new 

controls added as paragraphs (h)(27) 

through (h)(30). Finally, the note to 

Category VIII is modified to update the 

paragraphs of paragraph (h) that are 

affected. 

A number of commenting parties 

submitted observations or 

recommendations that pertained to 

sections of the ITAR other than USML 

Categories VIII and XIX. Additional 

commenting parties offered general 

observations or requests regarding the 

ECR initiative or defense trade 

generally. The Department is not 

addressing such comments in this 

proposed rule because they are outside 

the scope of the pending inquiry. The 

Department welcomes input from the 

public on these matters under separate 

cover and through standard means of 

communication, and offers guidance to 

industry through the efforts of the DDTC 

Response Team or the Advisory 

Opinion process. As outlined in the 

Notice of Inquiry referenced above, this 

rulemaking addresses only the USML 

Categories identified specifically in the 

Notice of Inquiry. 

One commenter recommended that 

paragraph (a)(5) and paragraph (a)(13) 

be removed, and another commenter 

similarly recommended that paragraph 

(a)(6) be deleted, with paragraphs added 

to each entry in paragraph (a) for which 

the Department sought to control 

unmanned or optionally-piloted 

variants. The Department has revised 

these paragraphs, as described below, 

and modified paragraph (a) to confirm 

that the subject aircraft are ITARcontrolled if manned, unmanned, 

remotely piloted, or optionally piloted. 

A commenting party stated that the 

term ‘‘attack helicopters’’ in paragraph 

(a)(4) is ambiguous, and proposed a 

clarifying note. The Department did not 

accept this recommendation, because it 

has received little evidence to date to 

indicate that ITAR users have struggled 

with the meaning of this language and 

no other commenting party expressed a 

similar concern. 

Several commenting parties suggested 

that the use of the term ‘‘military’’ in 

Category VIII, when used in the control 

text as a feature that would distinguish 

ITAR-controlled aircraft from other 

aircraft (e.g., in paragraph (a)(5)), did 

not provide sufficient clarity to allow 

for reliable self-classification of an 

aircraft. The Department accepted this 

suggestion and, where practical, has 

replaced references to ‘‘military’’ aircraft 

with controls impacting those aircraft 

that incorporate or are specially 

designed to incorporate a defense 

article. This includes revisions to 

paragraph (a)(5) and (a)(7). 

Additional commenting parties 

recommended that paragraph (a)(7) be 

revised to specifically describe the 

technical parameters or capabilities that 

merit ITAR control in the context of 

intelligence, surveillance, and 

reconnaissance missions. The 

Department has elected to limit 

revisions to paragraph (a)(7) to those 

referenced above, in order to capture an 

appropriate range of capabilities of 

concern. 

One commenting party recommended 

that paragraph (a)(8) be revised to 

specifically describe the technical 

parameters or capabilities that merit 

ITAR control in this context, asserting 

that commercial aircraft may be 

captured by the existing control. The 

Department did not accept the 

recommendation to add technical 

parameters, but has proposed revisions 

to the control text in order to better 

clarify the classes of aircraft subject to 

this control. 

Five commenting parties observed 

that the control set forth in paragraph 

(a)(11) created a significant burden for 

industry, by capturing any aircraft 

incorporating a mission system already 

controlled elsewhere in the USML, and 

thus recommended deletion of the 

control. Since the mission systems at 

issue in this paragraph are already 

subject to ITAR control and there is no 

other described feature that causes the 

aircraft at issue in this paragraph to 

merit ITAR control, the Department 

accepted these recommendations and 

deleted the paragraph and the notes to 

the paragraph. 

The Department did not receive 

public comment on paragraph (a)(12). 

However, public comment is requested 

on whether any commercial unmanned 

aerial vehicles have the capability 

described in this paragraph. In any 

public comment submitted in reply to 

this request, please provide specific 

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examples of the commercial models at 

issue. 

Four commenting parties recommend 

revision to or deletion of paragraph 

(a)(13), arguing that the control is overly 

broad and captures all optionally 

piloted aircraft, including aircraft that 

would otherwise be controlled by the 

EAR. The Department accepted these 

comments and deleted the paragraph, 

while revising paragraph VIII(a) to 

capture all optionally piloted variants of 

the aircraft listed in that paragraph. 

Two commenting parties 

recommended revision of paragraph 

(a)(14) to narrow the scope to capture 

only those aircraft platforms that 

provide critical military or intelligence 

capabilities, as well as to avoid 

inadvertent capture of commercial 

aircraft such as the L–100. The 

Department partially accepted the latter 

recommendation and excluded L–100 

aircraft manufactured prior to 2013 from 

control under paragraph (a)(14). The 

Department requests public comment on 

the scope and effect of this control and 

exclusion. 

Three commenting parties suggested 

that paragraph (a)(15)(ii) is not 

sufficiently clear to foreign readers, 

given its reliance on the military 

designations in paragraph (a)(15)(i) 

rather than specific performance 

criteria. While the Department believes 

the military designations set forth in 

paragraph (a)(15)(i) can be researched 

and understood satisfactorily using 

publicly available information and the 

relevant performance criteria can be 

determined based on this information, 

public comment is requested on 

whether paragraph (a)(15) captures 

articles that are not already controlled 

by paragraphs (a)(1)–(a)(14). Similar to 

its request for comments on paragraph 

(a)(15), the Department requests public 

comment regarding whether the scope 

of controls described in paragraph 

(a)(16) is redundant given the controls 

in paragraphs (a)(1)–(a)(14), and 

whether it effectively precludes any less 

sensitive aircraft from being controlled 

in ECCN 9A610.a that, for example, may 

have been once manufactured with hard 

points that could be used to deliver 

munitions. 

One commenting party recommended 

revised control text for paragraph 

(a)(16), arguing that the word ‘‘armed’’ 

is ambiguous in its meaning. The 

Department did not accept this 

recommendation and believes that this 

term is sufficiently clear and understood 

by the public. 

Two commenting parties requested 

clarification on the scope of paragraph 

(d), with respect to the relationship 

between this paragraph and paragraph 

(h)(6), as well as the use of ‘‘specially 

designed’’ in this paragraph. The 

Department observes that the reference 

to ‘‘launching systems’’ in paragraph 

(h)(6) is limited in scope to launching 

equipment for unmanned aerial 

vehicles. Additionally, the Department 

has revised paragraph (d) to remove the 

‘‘ship-based’’ modifiers, as well as to 

clarify the performance characteristic 

for which the equipment at issue must 

be ‘‘specially designed.’’ 

One commenting party recommended 

no change to paragraph (e), while three 

commenting parties recommended 

deletion of the paragraph or removal of 

its Significant Military Equipment 

designation. The Department did not 

accept any recommendation to modify 

this paragraph in this rulemaking. Since 

it is anticipated that the concurrent 

Category XII revision effort may impact 

controls over related technologies, the 

Department has elected to refrain from 

modifying the paragraph (e) control in 

Category VIII pending the outcome of 

the Category XII review and revision 

process. 

Three commenting parties suggested 

revisions to paragraph (f) or the Notes to 

that paragraph. Where commenting 

parties recommended technical 

clarifications or changes of terminology 

that did not materially alter the control, 

the Department did not accept these 

recommendations in order to maintain 

conformity between this paragraph and 

the analogous paragraphs that appear in 

other categories of the USML. The 

Department also did not accept a 

recommendation to limit the scope of 

paragraph (f) to developmental aircraft 

‘‘of the type described in VIII(a)(1)–(16)’’ 

in favor of the existing scope of the 

paragraph. The Department accepted a 

recommendation to limit the class of 

modified contract affected by Note 3 to 

paragraph (f) to those that initiate the 

development of a new defense article 

and are dated April 16, 2014 or later. 

One commenting party remarked in 

numerous instances on the use of 

‘‘specially designed’’ with respect to 

components of components. The 

Department received no other indication 

in the context of this review effort that 

the referenced control parameter is 

unclear and did not agree with these 

comments. Similarly, two commenting 

parties recommended the addition of 

technical parameters to remove 

‘‘specially designed’’ wherever possible. 

The Department accepts this edit to the 

fullest extent possible, but notes that 

‘‘specially designed’’ exists in 

recognition of the fact that an 

enumeration of specific technical 

parameters may prove too complex or 

unwieldy to produce a useful regulation 

in some cases. 

Several commenters offered 

recommendations to revise paragraph 

(h)(1), arguing that the control is overly 

broad or offering specific examples of 

technologies that are controlled by the 

paragraph but may be more 

appropriately controlled by the EAR. 

The Department did not accept any 

recommendation to remove a single 

technology or product from the 

paragraph, because such a change 

would be inconsistent with the national 

security, foreign policy, and regulatory 

drafting objectives of the paragraph to 

control as defense articles all parts and 

components, regardless of 

sophistication or similarity to items 

subject to the EAR, that are specially 

designed for the stealth and lowobservable aircraft platforms of greatest 

concern referenced in paragraph (h)(1). 

However, the Department modernized 

the list of aircraft platforms, and 

removed the reference to equipment. A 

new paragraph (h)(30) is added to 

capture the limited range of equipment 

relevant to a defense article described in 

paragraph (h)(1) and meriting ITAR 

control. Additionally, the Department 

notes that not all products designed for 

a referenced aircraft platform are 

‘‘specially designed’’ for that platform. 

Please refer to ITAR § 120.41 for more 

information. 

One commenting party requested 

confirmation that paragraph (h)(1) does 

not control articles controlled elsewhere 

on the USML, such as an F–35 radar 

that would otherwise be controlled as 

significant military equipment (SME) 

under USML Category XI(a)(3). The 

Department confirms that the higherlevel SME control is appropriate in such 

a scenario. The essence of the Order of 

Review concept is that when 

determining whether an item is subject 

to the ITAR, one must first review the 

enumerated and other entries on the 

USML that do not use a ‘‘specially 

designed’’ catch-all reference to 

unspecified ‘‘parts’’ and ‘‘components.’’ 

If no such references apply to the 

product at issue, then one must then 

review the ‘‘specially designed’’ catchall provisions in the USML. If none of 

the USML catch-all provisions apply to 

the product at issue, then one must 

perform the same exercise within the 

600 series controls of the CCL (or with 

the 515 controls for satellite-related 

items). If none of those entries apply, 

then one reviews the rest of the CCL as 

described in the EAR. 

A commenting party recommended 

clarification with respect to the Note to 

paragraph (h)(1), to confirm that the 

paragraph’s description of specially 

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designed and ITAR § 120.41 pertains 

only to paragraph (h)(1). The 

Department confirms that notes within 

the USML are intended only to pertain 

to the category, paragraph, or paragraph 

referenced in their heading; as such, the 

Note to paragraph (h)(1) relates only to 

that paragraph. 

Three commenting parties 

recommended revision to paragraph 

(h)(2) to remove the reference to 

interconnecting drive shafts and to 

clarify the scope of gearboxes that merit 

control under this provision. The 

Department accepted these edits and 

proposes a rewritten paragraph (h)(2) 

that controls only certain rotorcraft 

gearboxes that meet specific technical 

criteria. 

Two commenters recommended 

deletion of paragraph (h)(2) and an 

expansion of paragraph (h)(18) to 

control ballistic resistant gearbox parts 

and components. The Department 

partially accepted these comments. The 

revised control clarifies the narrowed 

scope of articles that merit control and 

is intended to address the commenters’ 

objective of avoiding capture of items in 

normal commercial use. 

One commenting party recommended 

removal of the ‘‘specially designed parts 

and components therefor’’ language 

from paragraph (h)(2). The Department 

rejected this comment because the 

revised control now sets forth specific 

technical criteria. 

A commenter recommended revision 

of paragraph VIII(h)(3) to control only 

quick-fold systems designed for 

maritime operations and the specially 

designed parts and components thereof. 

In the interest of retaining the existing 

scope of control, the Department did not 

accept this recommendation. 

Similarly, the Department did not 

accept a recommendation to remove 

paragraph VIII(h)(4)’s control over 

certain wing folding systems. This 

paragraph was revised as recently as 

July 1, 2014 to ensure that wing folding 

systems for commercial aircraft are not 

controlled as defense articles, while 

retaining those systems that warrant 

ITAR controls for foreign policy and 

national security reasons. The range of 

public comments received did not 

indicate that the paragraph, as revised 

in July 2014, required further revision at 

this time. 

One commenting party requested 

clarification regarding the relationship 

between paragraph (h)(6) and paragraph 

(d) of the same category. As described 

above, the Department has revised 

paragraph (d) to provide more specific 

performance criteria, and further notes 

that the ‘‘airborne launching systems’’ 

referenced in paragraph (h)(6) pertain 

only to unmanned aerial vehicles. 

A commenting party recommended 

addition of a Note to paragraph (h)(6) to 

explain the meaning of ‘‘external stores 

support systems for ordnance or 

weapons.’’ In drafting control text the 

Department intends to avoid the overuse 

of clarifying notes to the extent possible, 

and did not believe that the 

recommended Note added sufficient 

clarity to merit its addition. 

One commenting party requested the 

addition of technical parameters to 

allow for the removal of ‘‘specially 

designed’’ language from paragraph 

(h)(7). The Department did not accept 

this comment but added a clarifying 

revision to the text of the paragraph, in 

order to better identify the intended 

scope of control, and added a control for 

parts and components of the systems 

described in this paragraph. 

Similarly, the Department did not 

accept a recommendation to add a Note 

to paragraph (a)(10) to indicate that the 

paragraph does not control radar or 

radio altimeter equipment conforming 

to Federal Aviation Administration 

Technical Standard Order C87. The 

Department made a minor clarifying 

revision to the paragraph, but the 

balance of comments received did not 

indicate a degree of confusion that 

would require the addition of the 

recommended Note. 

Two commenting parties 

recommended deletion of paragraph 

(h)(13), arguing that it does not control 

a uniquely military capability. The 

Department accepted these 

recommendations, deleted the control 

text of paragraph (h)(13), and placed the 

paragraph into reserve. 

One commenter recommended the 

removal of text in paragraph (h)(15) 

relating to ‘‘specially designed parts, 

components, accessories, and 

attachments therefor’’ and moving 

certain connectors, cables, and cable 

assemblies to ECCN 9A610. The 

commenter argued that the only 

differences between the EAR and 

apparent ITAR variants of the subject 

cables are the number of connectors on 

the cable and the wire length between 

connectors. The Department did not 

accept this recommendation because the 

cables as described would not be 

captured by the definition of specially 

designed in ITAR § 120.41. The 

Department did not accept a similar 

recommended refinement of the same 

text to control only those specially 

designed parts, components, and 

accessories for the optical sights or 

slewing device of the integrated helmet. 

The relevant control extends to those 

parts, components, or accessories that 

meet the definition of specially 

designed with respect to the 

components described in the paragraph. 

A commenting party requested 

clarification with respect to the words 

‘‘and computers’’ in paragraph (h)(16). 

The Department accepted this 

recommendation and made a minor 

revision to clarify that the words 

‘‘aircraft-weapon interface units and 

computers’’ should be read together as 

one concept. 

One commenting party remarked that 

paragraphs (h)(17), (h)(19), and (h)(23) 

described general purpose items and 

thus should be deleted. As noted above, 

paragraph (h)(23) is placed into reserve 

in this rule. With respect to paragraphs 

(h)(17) and (h)(19), the Department did 

not accept these recommendations 

because the commenter did not provide 

sufficient justification or explanation for 

these assertions. 

A commenter asked whether 

paragraph (h)(20) controlled all relevant 

classified parts, components, 

accessories, attachments, equipment, or 

systems, or if the paragraph only 

controlled those classified items not 

enumerated elsewhere in the subject 

category. This paragraph functions as a 

catch-all for classified defense articles 

not described elsewhere in the USML. 

Articles described elsewhere on the 

USML that are classified are controlled 

as specifically enumerated elsewhere in 

the subchapter, if applicable, or by 

USML Category XVII. 

One commenter recommended minor 

revisions to paragraph (h)(20) to match 

the analogous entries in USML 

Categories IV, V, IX, X, XI, and XV. The 

Department accepted this comment. 

Four commenting parties requested 

clarification of the terms ‘‘thermal 

engine’’ and ‘‘thermal batteries’’ as they 

appear in paragraphs (h)(24) and (h)(25), 

respectively. The Department notes that 

those paragraphs are deleted in this 

proposed rule. 

A commenting party observed that 

paragraph VIII(k) is reserved, but in 

§ 121.16 of this subchapter, Item 10— 

Category II of the Missile Technology 

Control Regime (MTCR) Annex 

references the paragraph. The MTCR 

Annex is beyond the scope of this 

review effort but the Department 

acknowledges the observation of an 

error. Once all revised USML categories 

are published as final rules, ITAR 

§ 121.16 will be placed in reserve, and 

the parenthetical ‘‘(MT)’’ will be used at 

the end of each USML section 

containing such articles. 

One commenter suggested that the 

reference to ECCN 9A610 in the Note to 

Category VIII is not helpful, because 

most EAR-controlled aircraft that 

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incorporate a defense article are 

classified under ECCN 9A991.b. The 

Department did not accept the 

recommendation because it is not 

prepared to extend a per se exclusion 

from ITAR coverage to relevant aircraft 

controlled under the latter ECCN. 

Moreover, the Department believes that 

a very small number of USML articles 

are typically incorporated into ECCN 

9A991.b aircraft. Any examples to the 

contrary should be identified in a public 

comment. 

A commenting party suggested that it 

is logically inconsistent to subject to 

ITAR control any spare or replacement 

parts for aircraft covered by the Note to 

Category VIII, where the spare or 

replacement parts are controlled by any 

of the USML paragraphs referenced in 

that Note. The Department does not 

agree with this comment because it 

continues to value the control of exports 

of unincorporated parts and 

components that would independently 

merit ITAR control under normal 

circumstances. 

Revision of Category XIX 

This proposed rule revises USML 

Category XIX, covering gas turbine 

engines and associated equipment, to 

describe more precisely the articles 

warranting control on the USML. 

Paragraph (a) is modified to clarify the 

scope of controlled engines and to 

incorporate technical corrections. 

Paragraph (b) is revised to provide 

additional technical parameters to 

clarify the scope of controlled engines. 

With respect to paragraph (b)(1), public 

comment is requested on whether any 

commercial models exceed the 

capability described in this paragraph. 

In any public comment submitted in 

reply to this request, please provide 

specific examples of the commercial 

models at issue. 

Paragraph (c) is modified to 

incorporate conforming changes and to 

make clear that the paragraph applies 

only to gas turbine engines, while 

paragraph (d) is modified to update the 

list of subject engines. The Note to 

paragraph (e) is modified to incorporate 

a conforming change. 

Several changes are proposed within 

paragraph (f). Paragraph (f)(1) is 

modified to incorporate technical 

corrections and to update the list of 

subject engines. Paragraph (f)(2) 

introduces additional text to clarify the 

scope of controlled hot section 

components. New controls are proposed 

for paragraphs (f)(7) through (f)(16). 

A commenting party observed that 

Category XIX does not currently capture 

developmental engines that do not meet 

the performance criteria of paragraphs 

(a) through (e), and that paragraph (g) 

only covers technical data directly 

related to defense articles. A second 

commenter recommended the addition 

of a paragraph to specifically control 

developmental gas turbine engines, in a 

manner similar to development-related 

paragraphs in other USML categories. 

The Department has revised paragraphs 

(a) through (c) to specifically control 

developmental engines that meet the 

technical criteria specified in those 

paragraphs that merit ITAR control. 

Two commenting parties 

recommended the addition of a Note to 

Category XIX that would allow the 

Department of Commerce to license the 

export of certain ITAR-controlled gas 

turbine engines when incorporated in a 

military aircraft subject to the EAR and 

classified under a ‘‘600 series’’ ECCN. 

The Department accepted this 

recommendation. If examples exist of 

non-600 series production aircraft that 

are subject to the EAR and incorporate, 

in the ordinary course of civil 

applications, engines subject to the 

ITAR, please identify them in a public 

comment. 

A commenting party recommended 

the deletion of ‘‘specially designed’’ in 

various instances throughout the 

category. The Department has not 

received information indicating that the 

employment of the term has frustrated 

the application of the controls in this 

category, but will closely review any 

relevant comments received in reply to 

this proposed rule. 

One commenting party stated that the 

control text of paragraph (b), in concert 

with Category VIII(h)(2), frustrated 

commercial tilt rotor aircraft 

development. The Department has 

revised both categories to more 

specifically describe the parameters or 

characteristics that merit ITAR control. 

One commenter requested the removal 

of the T700 engine from control under 

paragraph (d). The Department did not 

accept this recommendation but has 

revised the list of engines subject to 

ITAR control under this paragraph. 

Several commenters offered 

recommendations to revise paragraph 

(f)(1), arguing that the control is overly 

broad or offering specific examples of 

technologies that are controlled by the 

paragraph but may be more 

appropriately controlled by the EAR. 

The Department did not accept any 

recommendation to remove the catch-all 

structure of the paragraph because such 

a revision would be inconsistent with 

the national security, foreign policy, and 

regulatory draft objectives of the 

paragraph to control as defense articles 

all parts and components specially 

designed for gas turbine engines of 

greatest concern and as identified in 

paragraph (f)(1). However, the 

Department modernized the list of gas 

turbine engines, and removed the 

reference to equipment. Several new 

paragraphs are added to capture the 

limited range of equipment relevant to 

a defense article described in paragraph 

(f)(1) and meriting ITAR control. 

Additionally, the Department notes that 

not all products designed for a 

referenced gas turbine engine are 

‘‘specially designed’’ for that engine. 

Please refer to ITAR § 120.41 for more 

information. 

A commenting party remarked that 

paragraph (f)(2) does not control 

augmenter parts and components. The 

Department confirms this observation 

and notes that parts and components 

specially designed for hot section 

components not controlled by paragraph 

(f)(2) are controlled by ECCN 9A619.x. 

A commenter asked whether 

paragraph (f)(6) controlled all relevant 

classified parts, components, 

accessories, attachments, equipment, or 

systems, or if the paragraph only 

controlled those classified items not 

enumerated elsewhere in the subject 

category. The Department observes that 

the paragraph functions as a catch-all 

for classified defense articles not 

described elsewhere in the USML. 

Articles described elsewhere on the 

USML that are classified are controlled 

as specifically enumerated elsewhere in 

the subchapter, if applicable, or by 

USML Category XVII. 

Regulatory Analysis and Notices 

Administrative Procedure Act 

The Department of State is of the 

opinion that controlling the import and 

export of defense articles and services is 

a foreign affairs function of the United 

States Government and that rules 

implementing this function are exempt 

from sections 553 (Rulemaking) and 554 

(Adjudications) of the Administrative 

Procedure Act. Although the 

Department is of the opinion that this 

rule is exempt from the rulemaking 

provisions of the APA, the Department 

is publishing this rule with a 45-day 

provision for public comment and 

without prejudice to its determination 

that controlling the import and export of 

defense services is a foreign affairs 

function. As noted above, and also 

without prejudice to the Department 

position that this rulemaking is not 

subject to the APA, the Department 

previously published a related Notice of 

Inquiry on March 2, 2015 (80 FR 11314), 

and accepted comments for 60 days. 

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Regulatory Flexibility Act 

Since the Department is of the 

opinion that this rule is exempt from the 

provisions of 5 U.S.C. 553, there is no 

requirement for an analysis under the 

Regulatory Flexibility Act. 

Unfunded Mandates Reform Act of 1995 

This rulemaking does not involve a 

mandate that will result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any year and it will not significantly 

or uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

For purposes of the Small Business 

Regulatory Enforcement Fairness Act of 

1996 (the ‘‘Act’’), a ‘‘major’’ rule is a 

rule that the Administrator of the OMB 

Office of Information and Regulatory 

Affairs finds has resulted or is likely to 

result in (1) an annual effect on the 

economy of $100,000,000 or more; (2) a 

major increase in costs or prices for 

consumers, individual industries, 

federal, state, or local government 

agencies, or geographic regions; or (3) 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

foreign markets. 

The Department does not believe this 

rulemaking will have an annual effect 

on the economy of $100,000,000 or 

more. Articles that are being removed 

from coverage in the U.S. Munitions List 

categories contained in this rule will 

still require licensing for export, but 

from the Department of Commerce. 

While the licensing regime of the 

Department of Commerce is more 

flexible than that of the Department of 

State, it is not expected that the change 

in jurisdiction of these articles will 

result in an export difference of 

$100,000,000 or more. 

The Department also does not believe 

that this rulemaking will result in a 

major increase in costs or prices for 

consumers, individual industries, 

federal, state, or local government 

agencies, or geographic regions, or have 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

foreign markets. 

Executive Orders 12372 and 13132 

This rulemaking will not have 

substantial direct effects 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. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this rulemaking 

does not have sufficient federalism 

implications to require consultations or 

warrant the preparation of a federalism 

summary impact statement. The 

regulations implementing Executive 

Order 12372 regarding 

intergovernmental consultation on 

Federal programs and activities do not 

apply to this rulemaking. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributed impacts, and equity). 

These executive orders stress the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rulemaking has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

this rule has been reviewed by the 

Office of Management and Budget 

(OMB). 

Executive Order 12988 

The Department of State has reviewed 

this rulemaking in light of sections 3(a) 

and 3(b)(2) of Executive Order 12988 to 

eliminate ambiguity, minimize 

litigation, establish clear legal 

standards, and reduce burden. 

Executive Order 13175 

The Department of State has 

determined that this rulemaking will 

not have tribal implications, will not 

impose substantial direct compliance 

costs on Indian tribal governments, and 

will not preempt tribal law. 

Accordingly, the requirements of 

Executive Order 13175 do not apply to 

this rulemaking. 

Paperwork Reduction Act 

This rule does not impose any new 

reporting or recordkeeping requirements 

subject to the Paperwork Reduction Act, 

44 U.S.C. Chapter 35; however, the 

Department of State seeks public 

comment on any unforeseen potential 

for increased burden. 

List of Subjects in 22 CFR 121 

Arms and munitions, Classified 

information, Exports. 

PART 121—THE UNITED STATES 

MUNITIONS LIST 

■ 1. The authority citation for part 121 

continues to read as follows: 

Authority: Secs. 2, 38, and 71, Pub. L. 90– 

629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2797); 22 U.S.C. 2651a; Pub. L. 105–261, 112 

Stat. 1920; Section 1261, Pub. L. 112–239; 

E.O. 13637, 78 FR 16129. 

■ 2. Section 121.1 is amended by 

revising U.S. Munitions List Categories 

VIII and XIX, to read as follows: 

§ 121.1 The United States Munitions List. 

* * * * * 

Category VIII—Aircraft and Related 

Articles 

(a) Aircraft, whether manned, 

unmanned, remotely piloted, or 

optionally piloted, as follows (MT if the 

aircraft, excluding manned aircraft, has 

a range equal to or greater than 300 km): 

*(1) Bombers; 

*(2) Fighters, fighter bombers, and 

fixed-wing attack aircraft; 

*(3) Turbofan- or turbojet-powered 

trainers used to train pilots for fighter, 

attack, or bomber aircraft; 

*(4) Attack helicopters; 

*(5) Unmanned aerial vehicles 

(UAVs) incorporating or specially 

designed to incorporate a defense 

article; 

*(6) [Reserved] 

*(7) Intelligence, surveillance, and 

reconnaissance aircraft incorporating or 

specially designed to incorporate a 

defense article; 

*(8) Electronic warfare aircraft, or 

airborne warning and control aircraft; or 

command, control, and communications 

aircraft incorporating or specially 

designed to incorporate a defense 

article; 

(9) Air refueling aircraft; 

(10) Target drones; 

(11) [Reserved] 

(12) Aircraft capable of being refueled 

in-flight including hover-in-flight 

refueling (HIFR); 

(13) [Reserved] 

(14) Aircraft with a roll-on/roll-off 

ramp, capable of airlifting payloads over 

35,000 lbs. to ranges over 2,000 nm 

without being refueled in-flight, and 

landing onto short or unimproved 

airfields, other than L–100 aircraft 

manufactured prior to 2013; 

*(15) Aircraft not enumerated in 

paragraphs (a)(1) through (a)(14) as 

follows: 

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(i) U.S.-origin aircraft that bear an 

original military designation of A, B, E, 

F, K, M, P, R, or S; or 

(ii) Foreign-origin aircraft specially 

designed to provide functions 

equivalent to those of the aircraft listed 

in paragraph (a)(15)(i) of this category; 

or 

(16) Aircraft that are armed or are 

specially designed to be used as a 

platform to deliver munitions or 

otherwise destroy targets (e.g., firing 

lasers, launching rockets, firing missiles, 

dropping bombs, or strafing); 

Note 1 to paragraph (a): Aircraft 

specially designed for military 

applications that are not identified in 

paragraph (a) of this section are subject 

to the EAR and classified as ECCN 

9A610, including any model of unarmed 

military aircraft manufactured prior to 

1956, regardless of origin or designation, 

and unmodified since manufacture. 

Aircraft with modifications made to 

incorporate safety of flight features or 

other FAA or NTSB modifications such 

as transponders and air data recorders 

are considered ‘‘unmodified’’ for the 

purposes of this paragraph. 

Note 2 to paragraph (a): ‘‘Range’’ is 

the maximum distance that the 

specified aircraft system is capable of 

traveling in the mode of stable flight as 

measured by the projection of its 

trajectory over the surface of the Earth. 

The maximum capability based on the 

design characteristics of the system, 

when fully loaded with fuel or 

propellant, will be taken into 

consideration in determining range. The 

range for aircraft systems will be 

determined independently of any 

external factors such as operational 

restrictions, limitations imposed by 

telemetry, data links, or other external 

constraints. For aircraft systems, the 

range will be determined for a one-way 

distance using the most fuel-efficient 

flight profile (e.g., cruise speed and 

altitude), assuming International Civil 

Aviation Organization (ICAO) standard 

atmosphere with zero wind, but with no 

fuel reserve. 

(b)–(c) [Reserved] 

(d) Launching and recovery 

equipment specially designed to allow 

an aircraft described in paragraph (a) of 

this category to take off or land on a 

vessel described in Category VI 

paragraphs (a) through (c) (MT if the 

launching and recovery equipment is for 

an aircraft, excluding manned aircraft, 

that has a range equal to or greater than 

300 km). 

Note to paragraph (d): For the 

definition of ‘‘range,’’ see note to 

paragraph (a) of this category. 

*(e) Inertial navigation systems (INS), 

aided or hybrid inertial navigation 

systems, Inertial Measurement Units 

(IMUs), and Attitude and Heading 

Reference Systems (AHRS) specially 

designed for aircraft controlled in this 

category or controlled in ECCN 9A610 

and all specially designed components, 

parts, and accessories therefor (MT if 

the INS, IMU, or AHRS is for an aircraft, 

excluding manned aircraft, or missile 

that has a ‘‘range’’ equal to or greater 

than 300 km). For other inertial 

reference systems and related 

components refer to USML Category 

XII(d). 

(f) Developmental aircraft funded by 

the Department of Defense via contract 

or other funding authorization, and 

specially designed parts, components, 

accessories, and attachments therefor. 

Note 1 to paragraph (f): This 

paragraph does not control aircraft and 

specially designed parts, components, 

accessories, and attachments therefor (a) 

in production; (b) determined to be 

subject to the EAR via a commodity 

jurisdiction determination (see § 120.4 

of this subchapter), or (c) identified in 

the relevant Department of Defense 

contract or other funding authorization 

as being developed for both civil and 

military applications. 

Note 2 to paragraph (f): Note 1 does 

not apply to defense articles enumerated 

on the U.S. Munitions List, whether in 

production or development. 

Note 3 to paragraph (f): This 

paragraph is applicable only to those 

contracts, other funding authorizations, 

or modifications initiating development 

of a new defense article that are dated 

April 16, 2014, or later. 

(g) [Reserved] 

(h) Parts, components, accessories, 

attachments, associated equipment and 

systems, as follows: 

(1) Parts, components, accessories, 

and attachments specially designed for 

the following U.S.-origin aircraft: the B– 

1B, B–2, F–15SE, F/A–18 E/F, EA–18G, 

F–22, F–35, and future variants thereof; 

or the F–117 or U.S. Government 

technology demonstrators. Parts, 

components, accessories, and 

attachments of the F–15SE and F/A–18 

E/F that are common to earlier models 

of these aircraft, unless listed in 

paragraph (h) of this category, are 

subject to the EAR; 

Note to paragraph (h)(1): This 

paragraph does not control parts, 

components, accessories, and 

attachments that are common to aircraft 

described in paragraph (a) of this 

category but not identified in paragraph 

(h)(1), and those identified in paragraph 

(h)(1). For example, when applying 

§ 120.41(b)(3), a part common to only 

the F–16 and F—35 is not specially 

designed for purposes of this paragraph. 

A part common to only the F–22 and F– 

35—two aircraft models identified in 

paragraph (h)(1)—is specially designed 

for purposes of this paragraph, unless 

one of the other paragraphs is applicable 

under § 120.41(b). 

(2) Rotorcraft gearboxes with internal 

pitch line velocities exceeding 20,000 

feet per minute and able to operate 30 

minutes with loss of lubrication without 

an emergency or auxiliary lubrication 

system, and specially designed parts 

and components therefor; 

Note to paragraph (h)(2): Loss of 

lubrication means a situation where oil/ 

lubrication is mostly or completely lost 

from a transmission/gearbox such that 

only a residual coating remains due to 

the lubrication system failure. 

(3) Tail boom folding systems, 

stabilator folding systems or automatic 

rotor blade folding systems, and 

specially designed parts and 

components therefor; 

(4) Wing folding systems, and 

specially designed parts and 

components therefor, for: 

(i) Aircraft powered by power plants 

controlled under USML Category IV(d); 

or 

(ii) Aircraft with any of the following 

characteristics and powered by gas 

turbine engines: 

(A) The portion of the wing outboard 

of the wing fold is required for 

sustained flight; 

(B) Fuel can be stored outboard of the 

wing fold; 

(C) Control surfaces are outboard of 

the wing fold; 

(D) Hard points are outboard of the 

wing fold; 

(E) Hard points inboard of the wing 

fold are capable of in-flight ejection; or 

(F) The aircraft is designed to 

withstand maximum vertical 

maneuvering accelerations greater than 

+3.5g/¥1.5g. 

(5) On-aircraft arresting gear (e.g., tail 

hooks and drag chutes) and specially 

designed parts and components 

therefor; 

(6) Bomb racks, missile launchers, 

missile rails, weapon pylons, pylon-tolauncher adapters, unmanned aerial 

vehicle (UAV) airborne launching 

systems, external stores support systems 

for ordnance or weapons, and specially 

designed parts and components therefor 

(MT if the bomb rack, missile launcher, 

missile rail, weapon pylon, pylon-tolauncher adapter, UAV airborne 

launching system, or external stores 

support system is for an aircraft, 

excluding manned aircraft, or missile 

that has a ‘‘range’’ equal to or greater 

than 300 km); 

(7) Damage or failure-adaptive flight 

control systems, that do not consist 

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solely of redundant internal circuitry, 

specially designed for aircraft controlled 

in this category, and specially designed 

parts and components therefor; 

(8) Threat-adaptive autonomous flight 

control systems, where a ‘‘threatadaptive autonomous flight control 

system’’ is a flight control system that, 

without input from the operator or pilot, 

adjusts the aircraft control or flight path 

to minimize risk caused by hostile 

threats; 

(9) Non-surface-based flight control 

systems and effectors (e.g., thrust 

vectoring from gas ports other than main 

engine thrust vector); 

(10) Radar altimeters with output 

power management LPI (low probability 

of intercept) or signal modulation (i.e., 

frequency hopping, chirping, direct 

sequence-spectrum spreading) LPI 

capabilities (MT if for an aircraft, 

excluding manned aircraft, or missile 

that has a ‘‘range’’ equal to or greater 

than 300 km); 

(11) Air-to-air refueling systems and 

hover-in-flight refueling (HIFR) systems, 

and specially designed parts and 

components therefor; 

(12) Unmanned aerial vehicle (UAV) 

flight control systems and vehicle 

management systems with swarming 

capability (i.e., UAVs interact with each 

other to avoid collisions and stay 

together, or, if weaponized, coordinate 

targeting) (MT if for an aircraft, 

excluding manned aircraft, or missile 

that has a ‘‘range’’ equal to or greater 

than 300 km); 

(13) [Reserved] 

(14) Lift fans, clutches, and roll posts 

for short take-off, vertical landing 

(STOVL) aircraft and specially designed 

parts and components for such lift fans 

and roll posts; 

(15) Integrated helmets incorporating 

optical sights or slewing devices, which 

include the ability to aim, launch, track, 

or manage munitions (e.g., Helmet 

Mounted Cueing Systems, Joint Helmet 

Mounted Cueing Systems (JHMCS), 

Helmet Mounted Displays, Display and 

Sight Helmets (DASH)), and specially 

designed parts, components, 

accessories, and attachments therefor; 

(16) Fire control computers, stores 

management systems, armaments 

control processors, and aircraft-weapon 

interface units and computers (e.g., 

AGM–88 HARM Aircraft Launcher 

Interface Computer (ALIC)); 

(17) Mission computers, vehicle 

management computers, and integrated 

core processers specially designed for 

aircraft controlled in this category; 

(18) Drive systems and flight control 

systems specially designed to function 

after impact of a 7.62mm or larger 

projectile, and specially designed parts 

and components therefor; 

(19) Thrust reversers specially 

designed to be deployed in flight for 

aircraft controlled in this category; 

*(20) Any part, component, accessory, 

attachment, equipment, or system that: 

(i) Is classified; 

(ii) Contains classified software 

directly related to defense articles in 

this subchapter or 600 series items 

subject to the EAR; or 

(iii) Is being developed using 

classified information. 

Note to paragraph (h)(20): Classified 

means classified pursuant to Executive 

Order 13526, or predecessor order, and 

a security classification guide developed 

pursuant thereto or equivalent, or to the 

corresponding classification rules of 

another government or international 

organization; 

(21)–(26) [Reserved] 

(27) Variable speed gearboxes capable 

of varying output speed by 50% or 

greater and providing power to rotors, 

proprotors, propellers, propfans, or 

liftfans; and specially designed parts 

and components therefor; 

(28) Electrical power or thermal 

management systems integrated with an 

engine controlled in Category XIX 

having any of the following: 

(i) Electrical power generators that 

provide greater than 300kW of electrical 

power (per generator) with gravimetric 

power densities exceeding 2kW/pound; 

(ii) Heat exchangers that exchange 200 

kW of heat or greater into the gas 

turbine engine flow path; 

(iii) Logic controls that maintain gas 

turbine engine operability during 

pneumatic and shaft power extraction of 

2kW/pound; or 

(iv) Direct-cooling thermal electronic 

package heat exchangers that transfers 

20kW of heat or greater at 100W/cm2 or 

greater; 

(29) Flight control algorithms or 

software that aid in landing a fixed-wing 

aircraft on any vessel controlled in 

Category VI(a)–(c); or 

(30) The following, if specially 

designed for a defense article described 

in paragraph (h)(1): 

(i) Wind tunnel and other scale test 

models; 

(ii) Full scale iron bird ground rigs 

used to test major aircraft systems; 

(iii) Autonomic logistics information 

system (ALIS); or 

(iv) Jigs, locating fixtures, templates, 

gauges, molds, dies, and caul plates, for 

production of airframe parts and 

components. 

Note to paragraph (h)(30)(iv): 

‘‘Airframe’’ means an assembled 

structure influencing strength, integrity 

or shape and also includes 

transparencies, flush antennas, radomes, 

fairings, doors, internal ducts, pylons 

for external stores but does not include 

landing gear or other readily removable 

items. 

(i) Technical data (see § 120.10 of this 

subchapter) and defense services (see 

§ 120.9 of this subchapter) directly 

related to the defense articles described 

in paragraphs (a) through (h) of this 

category and classified technical data 

directly related to items controlled in 

ECCNs 9A610, 9B610, 9C610, and 

9D610 and defense services using 

classified technical data. (See § 125.4 of 

this subchapter for exemptions.) (MT for 

technical data and defense services 

related to articles designated as such.) 

(j)–(w) [Reserved] 

(x) Commodities, software, and 

technical data subject to the EAR (see 

§ 120.42 of this subchapter) used in or 

with defense articles controlled in this 

category. 

Note to paragraph (x): Use of this 

paragraph is limited to license 

applications for defense articles 

controlled in this category where the 

purchase documentation includes 

commodities, software, or technical data 

subject to the EAR (see § 123.1(b) of this 

subchapter). 

Note: Inertial navigation systems, 

aided or hybrid inertial navigation 

systems, Inertial Measurement Units, 

and Attitude and Heading Reference 

Systems in paragraph (e), and parts, 

components, accessories, and 

attachments in paragraphs (h)(3)–(5), 

(7), (14), (17), or (19) are licensed by the 

Department of Commerce when 

incorporated in an aircraft subject to the 

EAR and classified under ECCN 9A610. 

Replacement systems, parts, 

components, accessories and 

attachments are subject to the controls 

of the ITAR. 

* * * * * 

Category XIX—Gas Turbine Engines and 

Associated Equipment 

*(a) Turbofan and Turbojet engines 

(including those that are technology 

demonstrators, developmental engines, 

or variable cycle engines) capable of 

15,000 lbf (66.7 kN) of thrust or greater 

that have any of the following: 

(1) With or specially designed for 

thrust augmentation (afterburner); 

(2) Thrust or exhaust nozzle 

vectoring; 

(3) Parts or components controlled in 

paragraph (f)(6) of this category; 

(4) Specially designed for sustained 

30 second inverted flight or negative g 

maneuver; or 

(5) Specially designed for high power 

extraction (greater than 50 percent of 

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engine thrust at altitude) at altitudes 

greater than 50,000 feet. 

*(b) Turboshaft and Turboprop 

engines (including those that are 

technology demonstrators or 

developmental engines) that have any of 

the following: 

(1) Capable of 1500 mechanical shp 

(1119 kW) or greater and specially 

designed with oil sump sealing when 

the engine is in the vertical position; or 

(2) Capable of 225 specific power or 

greater and specially designed for 

armament gas ingestion and transient 

maneuvers, where specific power is 

defined as maximum takeoff shaft 

horsepower divided by compressor inlet 

flow (lbm/sec). 

*(c) Gas turbine engines (including 

technology demonstrators, 

developmental engines, and variable 

cycle engines) specially designed for 

unmanned aerial vehicle systems 

controlled in this category, cruise 

missiles, or target drones (MT if for an 

engine used in an aircraft, excluding 

manned aircraft, or missile that has a 

‘‘range’’ equal to or greater than 300 

km). 

*(d) GE38, AGT1500, CTS800, MT7, 

T55, TF60, HPW3000, GE3000, T408, 

and T700 engines. 

Note to paragraph (d): Engines 

subject to the control of this paragraph 

are licensed by the Department of 

Commerce when incorporated in an 

aircraft subject to the EAR and 

controlled under ECCN 9A610. Such 

engines are subject to the controls of the 

ITAR in all other circumstances. 

*(e) Digital engine control systems 

(e.g., Full Authority Digital Engine 

Controls (FADEC) and Digital Electronic 

Engine Controls (DEEC)) specially 

designed for gas turbine engines 

controlled in this category (MT if the 

digital engine control system is for an 

aircraft, excluding manned aircraft, or 

missile that has a range equal to or 

greater than 300 km). 

Note to paragraph (e): Digital 

electronic control systems 

autonomously control the engine 

throughout its whole operating range 

from demanded engine start until 

demanded engine shut-down, in both 

normal and fault conditions. 

(f) Parts, components, accessories, 

attachments, associated equipment, and 

systems as follows: 

(1) Parts, components, accessories, 

and attachments specially designed for 

the following U.S.-origin engines (and 

military variants thereof): F101, F107, 

F112, F118, F119, F120, F135, F136, 

F414, F415, and J402; Note to paragraph 

(f)(1): This paragraph does not control 

parts, components, accessories, and 

attachments that are common to engines 

enumerated in paragraph (a) through (d) 

of this category but not identified in 

paragraph (f)(1), and those identified in 

paragraph (f)(1). For example, a part 

common to only the F110 and F136 is 

not specially designed for purposes of 

this paragraph. A part common to only 

the F119 and F135—two engine models 

identified in paragraph (f)(1)—is 

specially designed for purposes of this 

paragraph, unless one of the other 

paragraphs is applicable under 

§ 120.41(b). 

*(2) Hot section components (i.e., 

combustion chambers and liners; high 

pressure turbine blades, vanes, disks 

and related cooled structure; actively 

cooled low pressure turbine blades, 

vanes, disks and related actively cooled 

structures; actively cooled power 

turbine blades, vanes, disks and related 

actively cooled structures; actively 

cooled intermediate turbine blades, 

vanes, disks and related actively cooled 

structures; actively cooled augmenters; 

and actively cooled nozzles) specially 

designed for gas turbine engines 

controlled in this category; 

(3) Uncooled turbine blades, vanes, 

disks, and tip shrouds specially 

designed for gas turbine engines 

controlled in this category; 

(4) Combustor cowls, diffusers, 

domes, and shells specially designed for 

gas turbine engines controlled in this 

category; 

(5) Engine monitoring systems (i.e., 

prognostics, diagnostics, and health) 

specially designed for gas turbine 

engines and components controlled in 

this category; 

*(6) Any part, component, accessory, 

attachment, equipment, or system that: 

(i) Is classified; 

(ii) Contains classified software 

directly related to defense articles in 

this subchapter or 600 series items 

subject to the EAR; or 

(iii) Is being developed using 

classified information. 

Note to paragraph (f)(6): ‘‘Classified’’ 

means classified pursuant to Executive 

Order 13526, or predecessor order, and 

a security classification guide developed 

pursuant thereto or equivalent, or to the 

corresponding classification rules of 

another government or international 

organization; 

(7) Test cells or test stands specially 

designed for technology demonstrator 

engines, developmental engines, or 

variable cycle engines controlled in this 

category; 

(8) Investment casting cores, core 

dies, or wax pattern dies for parts or 

components enumerated in paragraphs 

(f)(1), (f)(2), or (f)(3) of this category; 

(9) Pressure gain combustors specially 

designed for engines controlled in this 

category, and specially designed parts 

and components therefor; 

(10) Three-stream fan systems that 

allow the movement of airflow between 

the streams to control fan pressure ratio 

or bypass ratio (by means other than use 

of fan corrected speed or the primary 

nozzle area to change the fan pressure 

ratio or bypass ratio), and specially 

designed parts, components, 

accessories, and attachments therefor; 

(11) High pressure compressors with 

core-driven bypass streams that have a 

pressure ratio greater than one, 

occurring across any section of the 

bypass duct, and specially designed 

parts, components, accessories, and 

attachments therefor; 

(12) Intermediate compressors of a 

three-spool compression system with an 

intermediate spool-driven bypass stream 

that has a pressure ratio greater than 

one, occurring across any section of the 

bypass duct, and specially designed 

parts, components, accessories, and 

attachments therefor; 

(13) Powders specially designed for 

thermal or environmental barrier 

coating of defense articles enumerated 

in paragraphs (f)(1)–(f)(4) of this 

category; 

(14) Superalloys (i.e., nickel, cobalt or 

iron based), used in directionally 

solidified or single crystal casting, 

specially designed for defense articles 

enumerated in paragraphs (f)(1)–(f)(4) of 

this category; 

(15) Imide matrix, metal matrix, or 

ceramic matrix composite material (i.e., 

reinforcing fiber combined with a 

matrix) specially designed for defense 

articles enumerated in paragraphs (f)(1)– 

(f)(4) of this category; or 

(16) The following, if specially 

designed for a defense article in 

paragraph (f)(1): 

(i) Jigs, locating fixtures, templates, 

gauges, molds, dies, or caul plates, for 

production of engine parts and 

components; or 

(ii) Test cells or test stands. 

(g) Technical data (see § 120.10 of this 

subchapter) and defense services (see 

§ 120.9 of this subchapter) directly 

related to the defense articles described 

in paragraphs (a) through (f) of this 

category and classified technical data 

directly related to items controlled in 

ECCNs 9A619, 9B619, 9C619, and 

9D619 and defense services using the 

classified technical data. (See § 125.4 of 

this subchapter for exemptions.) (MT for 

technical data and defense services 

related to articles designated as such.) 

(h)–(w) [Reserved] 

(x) Commodities, software, and 

technical data subject to the EAR (see 

§ 120.42 of this subchapter) used in or 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

6806 Federal Register / Vol. 81, No. 26 / Tuesday, February 9, 2016 / Proposed Rules 

1When originally enacted as Title VI of the 

Housing and Community Development Act of 1974, 

the Act was titled the ‘‘Mobile Home Construction 

and Safety Standards Act of 1974’’. Section 308 of 

the Housing and Community Development Act of 

1980 (Pub. L. 96–399, approved October 8, 1980) 

amended the Act by replacing ‘‘Mobile Home’’ with 

‘‘Manufactured Housing’’ in the title and by 

replacing each reference to ‘‘mobile home’ with 

‘‘manufactured home.’’ Section 599A of the 

Department of Housing and Urban Development’s 

Appropriations Act for 1998 (Pub. L. 105–276, 

approved October 21, 1998) amended the definition 

of manufactured home to exclude ‘‘any selfpropelled recreational vehicle.’’ 

with defense articles controlled in this 

category. 

Note to paragraph (x): Use of this 

paragraph is limited to license 

applications for defense articles 

controlled in this category where the 

purchase documentation includes 

commodities, software, or technical data 

subject to the EAR (see § 123.1(b) of this 

subchapter). 

* * * * * 

Rose E. Gottemoeller, 

Under Secretary, Arms Control and 

International Security, Department of State. 

[FR Doc. 2016–02587 Filed 2–8–16; 8:45 am] 

BILLING CODE 4710–25–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Parts 3280 and 3282 

[Docket No. FR–5877–P–01] 

RIN 2502–AJ33 

Manufactured Home Procedural and 

Enforcement Regulations; Revision of 

Exemption for Recreational Vehicles 

AGENCY: Office of the Assistant 

Secretary for Housing-Federal Housing 

Commissioner, HUD. 

ACTION: Proposed rule. 

SUMMARY: This rulemaking proposes to 

revise the exemption for recreational 

vehicles that are not self-propelled from 

HUD’s Manufactured Housing 

Procedural and Enforcement 

Regulations. This proposed rule is based 

on a recommendation adopted by the 

Manufactured Housing Consensus 

Committee (MHCC) which would define 

a recreational vehicle as one built on a 

vehicular structure, not certified as a 

manufactured home, designed only for 

recreational use and not as a primary 

residence or for permanent occupancy, 

and built and certified in accordance 

with either the National Fire Protection 

Association (NFPA) 1192–15 or 

American National Standards Institute 

(ANSI) A119.5–09 consensus standards 

for recreational vehicles. HUD is 

adopting the MHCC’s recommendation 

but modifying it to require certification 

with the updated ANSI standard, 

A119.5–15, and by including a 

requirement that units claiming the 

ANSI A119.5–15 exemption 

prominently display a notice stating that 

the unit is designed only for recreational 

use, and not as a primary residence or 

permanent dwelling. 

DATES: Comments Due Date: April 11, 

2016. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this rule to the Regulations Division, 

Office of General Counsel, Department 

of Housing and Urban Development, 

451 Seventh Street SW., Washington, 

DC 20410–0500. Room 10276, 

Washington, DC 20410–0500. 

Communications must refer to the above 

docket number and title. There are two 

methods for submitting public 

comments. All submissions must refer 

to the above docket number and title. 

1. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street SW., Room 10276, 

Washington, DC 20410–0500. 

2. Electronic Submission of 

Comments. Interested persons may 

submit comments electronically through 

the Federal eRulemaking Portal at 

www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit a comment, ensures timely 

receipt by HUD, and enables HUD to 

make them immediately available to the 

public. Comments submitted 

electronically through the 

www.regulations.gov Web site can be 

viewed by other commenters and 

interested members of the public. 

Commenters should follow the 

instructions provided on that site to 

submit comments electronically. 

Note: To receive consideration as 

public comments, comments must be 

submitted through one of the two 

methods specified above. Again, all 

submissions must refer to the docket 

number and title of the rule. 

No Facsimile Comments. Facsimile 

(FAX) comments are not acceptable. 

Public Inspection of Public 

Comments. All properly submitted 

comments and communications 

submitted to HUD will be available for 

public inspection and copying between 

8 a.m. and 5 p.m. weekdays at the above 

address. Due to security measures at the 

HUD Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at 202–708– 

3055 (this is not a toll-free number). 

Individuals with speech or hearing 

impairments may access this number 

through TTY by calling the Federal 

Information Relay Service at 800–877– 

8339. Copies of all comments submitted 

are available for inspection and 

downloading at www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Pamela Beck Danner, Administrator, 

Office of Manufactured Housing 

Programs, Office of Housing, 

Department of Housing and Urban 

Development, 451 Seventh Street SW., 

Washington DC 20410; telephone (202) 

708–6409 (this is not a toll free number). 

Persons with hearing or speech 

impairments may access this number 

via TTY by calling the toll free Federal 

Information Relay Service at 1–800– 

877–8389. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The National Manufactured Housing 

Construction and Safety Standards Act 

of 1974 1 (Pub. L. 93–383, approved 

August 22, 1974) (42 U.S.C. 5401–5426) 

(the Act) authorizes HUD to establish 

and amend the Federal Manufactured 

Home Construction and Safety 

Standards (the Construction and Safety 

Standards, or Standards). When 

originally enacted, the Act covered 

mobile homes, defined as ‘‘a structure, 

transportable in one or more sections, 

which is eight body feet or more in 

width and is thirty-two feet in length.’’ 

Consequently, structures measuring less 

than 256 square feet were excluded from 

the definition of mobile home under the 

Act. 

On May 13, 1976 (41 FR 19846), HUD 

issued 24 CFR part 3282, its Mobile 

Home Procedural and Enforcement 

regulations. In this regulation, HUD 

codified its first recreational vehicle 

exemption. Recognizing that 

recreational vehicles in excess of 256 

square feet would be included in the 

definition of ‘‘mobile home,’’ HUD 

decided to exempt recreational vehicles 

from the scope of the regulation since 

they are not designed to be used as a 

permanent dwelling. HUD determined 

that, ‘‘[r]ecreational vehicles do not fall 

within the definition of mobile homes 

and are not subject to these regulations. 

A recreational vehicle is a vehicle, 

regardless of size, which is not designed 

to be used as a permanent dwelling, and 

in which the plumbing, heating, and 

electrical systems contained therein 

may be operated without connection to 

outside utilities and which are selfmstockstill on DSK4VPTVN1PROD with PROPOSALS