[Federal Register Volume 81, Number 33 (Friday, February 19, 2016)]
[Proposed Rules]
[Pages 8421-8438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03182]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 81, No. 33 / Friday, February 19, 2016 / 
Proposed Rules

[[Page 8421]]



DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 738, 740, 742, 743, 744, 772, and 774

[Docket No. 140221170-5728-02]
RIN 0694-AF75


Revisions to the Export Administration Regulations (EAR): Control 
of Fire Control, Laser, Imaging, and Guidance and Control Equipment the 
President Determines No Longer Warrant Control Under the United States 
Munitions List (USML)

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

ACTION: Proposed rule.

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SUMMARY: This proposed rule describes how articles the President 
determines no longer warrant control under Category XII (Fire Control, 
Laser, Imaging, and Guidance and Control Equipment) of the United 
States Munitions List (USML) of the International Traffic in Arms 
Regulations (ITAR) would be controlled under the Commerce Control List 
(CCL) of the Export Administration Regulations (EAR) by amending Export 
Control Classification Number (ECCN) 7A611 and creating new ``600 
series'' ECCNs 7B611, 7D611, and 7E611. In addition, for certain dual-
use infrared detection items, this proposed rule would expand controls 
for certain software and technology, eliminate the use of some license 
exceptions, revise licensing policy, and expand license requirements 
for certain transactions involving military end users or foreign 
military commodities. This proposed rule would also harmonize 
provisions within the EAR by revising controls related to certain 
quartz rate sensors and uncooled thermal imaging cameras.

DATES: Comments must be received by April 4, 2016.

ADDRESSES: You may submit comments by any of the following methods:
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Search for this rule using its regulations.gov docket number: BIS-2015-
0016
    <bullet> By email directly to <a href="/cdn-cgi/l/email-protection#c0b0b5a2aca9a3a3afadada5aeb4b380a2a9b3eea4afa3eea7afb6"><span class="__cf_email__" data-cfemail="b4c4c1d6d8ddd7d7dbd9d9d1dac0c7f4d6ddc79ad0dbd79ad3dbc2">[email protected]</span></a>. Include 
RIN 0694-AF75 in the subject line.
    <bullet> By mail or delivery to Regulatory Policy Division, Bureau 
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th 
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN 
0694-AF75.

FOR FURTHER INFORMATION CONTACT: For questions regarding the ECCNs 
included in this rule, contact Dennis Krepp, Office of National 
Security and Technology Transfer Controls, Bureau of Industry and 
Security, Telephone: 202-482-1309, Email: <a href="/cdn-cgi/l/email-protection#96d2f3f8f8ffe5b8dde4f3e6e6d6f4ffe5b8f2f9f5b8f1f9e0"><span class="__cf_email__" data-cfemail="d89cbdb6b6b1abf693aabda8a898bab1abf6bcb7bbf6bfb7ae">[email protected]</span></a>. For 
general questions regarding the proposed regulatory changes, contact 
Steven Emme, Office of the Assistant Secretary for Export 
Administration, Telephone: 202-482-5491, Email: 
<a href="/cdn-cgi/l/email-protection#1241667764777c3c577f7f7752707b613c767d713c757d64"><span class="__cf_email__" data-cfemail="c99abdacbfaca7e78ca4a4ac89aba0bae7ada6aae7aea6bf">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

    This proposed rule is part of the Administration's Export Control 
Reform Initiative (Initiative), the objective of which is to protect 
and enhance U.S. national security interests. The Initiative began in 
August 2009 when President Obama directed the Administration to conduct 
a broad-based review of the U.S. export control system to identify 
additional ways to enhance national security. The Department of State's 
International Traffic in Arms Regulations (ITAR) and its U.S. Munitions 
List (USML) are being amended to control only the items that provide 
the United States with a critical military or intelligence advantage or 
otherwise warrant such controls, and the Export Administration 
Regulations (EAR) are being amended to control military items that do 
not warrant USML controls. These changes will enhance national security 
by (i) improving interoperability of U.S. military forces with allied 
countries, (ii) strengthening the U.S. industrial base by, among other 
things, reducing incentives for foreign manufacturers to design out and 
avoid U.S.-origin content and services, and (iii) allowing export 
control officials to focus government resources on transactions that 
pose greater concern.
    Pursuant to section 38(f) of the Arms Export Control Act (AECA), 
the President is obligated to review the USML ``to determine what 
items, if any, no longer warrant export controls under'' the AECA. The 
President must report the results of the review to Congress and wait 30 
days before removing any such items from the USML. The report must 
``describe the nature of any controls to be imposed on that item under 
any other provision of law.'' 22 U.S.C. 2778(f)(1).
    Following the structure set forth in the final rule entitled 
``Revisions to the Export Administration Regulations: Initial 
Implementation of Export Control Reform'' (78 FR 22660, April 16, 2013) 
(``April 16 (initial implementation) rule''), BIS published a proposed 
rule entitled ``Revisions to the Export Administration Regulations 
(EAR): Control of Fire Control, Range Finder, Optical, and Guidance and 
Control Equipment the President Determines No Longer Warrant Control 
Under the United States Munitions List (USML)'' (80 FR 25798, May 5, 
2015) (``May 5 proposed rule''). That proposed rule was published in 
conjunction with a proposed rule published by the Department of State's 
Directorate of Defense Trade Controls (DDTC) to propose controls for 
the ITAR's USML Category XII.
    The proposed changes described in this proposed rule and the 
corresponding changes in the State Department's proposed amendment to 
USML Category XII are based, in part, on a review of public comments 
submitted in response to the May 5 proposed rule. The review of the 
comments on USML Category XII by the Departments of Commerce, Defense, 
Homeland Security, and State (hereinafter, ``the agencies'' or the 
``interagency review'') focused on identifying those types of articles 
that provide the United States with a critical military or intelligence 
capability and that are not currently in normal commercial use. It is 
the intent of the above agencies that the proposed USML Category XII 
and corresponding 600 series ECCNs not control items in normal 
commercial use. Such items should be controlled under existing dual-use 
controls on the CCL, consistent with the Wassenaar Arrangement List of 
Dual-Use Goods and Technologies. However, if the proposed entries in

[[Page 8422]]

USML Category XII or corresponding 600 series ECCNs include items in 
normal commercial use, then the public is encouraged to submit comments 
identifying such entries and examples of commercial items captured by 
those entries.
    To address concerns regarding the sensitivity of certain dual-use 
items related to infrared detection capability, this proposed rule 
would add restrictions to the export or reexport of several sensors and 
cameras, and related software and technology, that provide important 
night vision capability for military use but are also widely used in 
civil products and applications. These proposed restrictions include 
amending the availability of certain license exceptions, including TSR, 
APR, and STA; expanding the license requirement in Sec.  744.9 and 
scope of ECCN 0A919; adding new ECCN 0E987 for the development or 
production of commodities controlled by 0A987 that incorporate a focal 
plane array or image intensifier tube; expanding software controls 
related to items in ECCNs 6A002 and 6A003 by revising ECCNs 6D002, 
6D003, and 6D991; and expanding the scope of read-out integrated 
circuits controlled under ECCN 6A990 and related software and 
technology in ECCNs 6D991 and 6E990.
    This proposed rule would also revise controls pertaining to cameras 
classified under ECCN 6A993.a as a result of meeting the criteria to 
Note 3.a to ECCN 6A003.b.4.b (i.e., having a maximum frame rate equal 
to or less than 9 Hz). The interagency review found that these 9 Hz 
cameras have been incorporated into foreign military commodities. As a 
result, this proposed rule would amend Sec.  744.9 to include such 9 Hz 
cameras and subject them to the license requirements described in that 
section. Additionally, this proposed rule would create new ECCN 0E987 
to control technology required for the development or production of 
ECCN 0A987 commodities that incorporate a focal plane array or image 
intensifier tube.
    As a result of the interagency review, BIS believes that a limited 
number of military items, primarily less-sensitive parts and 
components, should move from USML Category XII to the 600 series 
entries proposed in this rule. This proposed rule would create (or 
revise in the case of 7A611) the following ``600 series'' ECCNs: 7A611, 
military fire control, laser, imaging, and guidance and control 
commodities; 7B611, test, inspection, and production commodities 
``specially designed'' for military fire control, laser, imaging, and 
guidance and control commodities; 7D611, software ``specially 
designed'' for the ``development,'' ``production,'' operation, or 
maintenance of commodities controlled by 7A611 or 7B611; and 7E611, 
technology ``required'' for the ``development,'' ``production,'' 
operation, installation, maintenance, repair, overhaul or refurbishing 
of commodities controlled by 7A611 or 7B611, or software controlled by 
7D611.
    In this proposed rule, all references to the USML 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 Sec.  38(a)(1) of 
the 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 controls does not affect the list of defense articles 
controlled on the USMIL under the AECA for the purpose of permanent 
import.
    BIS intends this proposed rule to be evaluated on its own merits, 
and the public need not review the May 5 proposed rule to understand 
this action. Once the public comments on this rule are reviewed and 
responded to, BIS intends to publish a final rule.

Public Comments in Response to the May 5 Proposed Rule

    BIS received 60 public comments in response to the May 5 proposed 
rule. Many of the comments focused on aspects of both the BIS proposed 
rule and the DDTC proposed rule. Generally, many commenters found that 
when the May 5 proposed rules used an unambiguous, bright line to 
delineate jurisdiction, the line was drawn in the wrong place. For many 
entries on the proposed USML Category XII, commenters found that no 
military specification or parameters were used to identify items 
warranting ITAR control. In addition, many commenters asserted that the 
proposed USML Category XII would capture items currently subject to the 
EAR, including some items that are currently EAR99. For other entries, 
commenters said the proposed rules added difficulty in determining 
jurisdiction. For instance, commenters indicated that new terms 
introduced to the ITAR in the proposal, such as ``core'' and 
``permanently encapsulated sensor assembly,'' added new layers of 
complexity and confusion to the current controls. In addition, many 
commenters expressed concerns regarding new proposed controls in the 
EAR for certain infrared detection items and for the inclusion of 
certain items in the proposed 600 series entries.
    Because of these concerns, one of the most common themes throughout 
the comments was that the May 5 proposed rules would lead to or further 
a competitive disadvantage for U.S. companies and research 
institutions. Commenters stated that many of the items proposed for 
control under either the proposed USML Category XII or 600 series 
entries were in normal commercial use and available from non-U.S. 
sources. To address these concerns, some commenters proposed additional 
parameters for various entries or recommended the use of ``specially 
designed'' in place of attempts to identify positive control 
parameters.

Changes From the May 5 Proposed Rule

    To address concerns raised in the public comments and to further 
harmonize and simplify the EAR, this proposed rule makes a number of 
changes from the May 5 proposed rule. First, this rule does not propose 
to amend part 742 to create a new worldwide Regional Stability (RS) 
control for dual-use items but would maintain a new worldwide RS 
control for certain military technology in ECCN 7E611.a. All other 
items described in this proposed rule that are or would be subject to 
RS controls would generally be subject to an RS Column 1 control, which 
imposes a license requirement for all destinations except Canada. For 
items the agencies believe warrant strict control, this proposed rule 
amends the availability of license exceptions or licensing policy, as 
described further below.
    This proposed rule also does not include controls proposed in the 
May 5 proposed rule for certain maintenance, repair, or overhaul 
software or technology related to certain dual-use infrared detection 
commodities. Such controls, which were proposed in new ECCNs 6D994 and 
6E994, would exceed those of the Wassenaar Arrangement, and based on 
public comments, would likely have resulted in extensive license 
requirements for purely commercial activities, such as civil automotive 
repair.
    Due to the elimination of the term ``permanent encapsulated sensor 
assembly'' as a parameter for determining jurisdiction for focal plane 
arrays in DDTC's proposed rule, this

[[Page 8423]]

proposed rule also does not include the definition for that term in 
part 772, as proposed in the May 5 proposed rule. This rule also 
removes references to that term that were proposed to be included in 
ECCN 6A002.
    With respect to the structure of the 600 series, this proposed rule 
would create only one set of 600 series ECCNs corresponding to USML 
Category XII rather than two sets. The May 5 proposed rule included a 
6x615 series for military fire control, range finder, and optical items 
and a 7x611 series for military guidance and control items. In order to 
simplify controls, this proposed rule would only establish one set of 
600 series ECCNs, the 7x611 series, which would correspond to all items 
proposed for control under USML Category XII.
    Additional changes made from the May 5 proposed rule are discussed 
more fully below.

Proposed Revisions To Further Harmonize and Simplify the EAR

    This rule proposes new revisions to the EAR that were not included 
in the May 5 proposed rule. In order to make the EAR more consistent 
and easier to apply, this proposed rule would revise various parts of 
the EAR related to certain QRS-11 sensors and to license requirements 
related to uncooled thermal imaging cameras.

Proposed Removal of Controls Specific to QRS-11 Sensors

    In 2007, DDTC and BIS published final rules (72 FR 31452 (June 7, 
2007); 72 FR 62768 (Nov. 7, 2007)) that moved the licensing 
jurisdiction for certain QRS-11 quartz rate sensors from the ITAR to 
the EAR when such sensors were integrated into and included as an 
integral part of a Commercial Standby Instrument System (or aircraft 
incorporating such system) or exported solely for integration into such 
a system. The BIS final rule added certain QRS-11 sensors to ECCN 7A994 
and included an RS Column 1 control. In addition, the BIS final rule 
amended Sec.  734.4 to add certain QRS-11 sensors to the list of items 
for which there is no de minimis level for foreign-made items 
incorporating such content.
    While predating Export Control Reform (ECR), the movement of 
certain QRS-11 sensors from the ITAR to the EAR reflects many of the 
rationales for ECR. The sensors, while originally designed for military 
application, began to be used in civil aircraft prior to the 2007 final 
rules. Thus, due to application of the see-through rule, State 
Department authorization would have been required for numerous exports 
and reexports involving civil aircraft.
    With the advent of ECR, BIS believes that special controls are no 
longer warranted for certain QRS-11 sensors. Consequently, this 
proposed rule would remove the RS Column 1 control from ECCN 7A994, 
along with references to certain QRS-11 sensors in the License 
Requirements Notes and Related Controls. To the extent that such 
sensors are not described on the USML (and the agencies do not believe 
that any of the sensors are described on the revised USML), one would 
follow the Order of Review in Supplement No. 4 to part 774 to determine 
whether the sensors may be captured under a 600 series ECCN or under a 
dual-use ECCN.
    This proposed rule would also remove and reserve Sec.  734.4(a)(3), 
which currently provides that there is no de minimis level for certain 
foreign-made items incorporating certain QRS-11 sensors subject to the 
EAR. Depending on the classification of the applicable QRS-11 sensor, 
one would follow the applicable de minimis requirements for 600 series 
items or for non-600 series items. In addition, this proposed rule 
would remove the restriction on the availability of license exceptions 
for certain QRS-11 sensors under Sec.  740.2(a)(9), and this proposed 
rule would remove references to QRS-11 sensors classified under ECCN 
7A994 in ECCNs 7E994 (Related Controls) and 9A991 (License Requirement 
Notes and Related Controls). Finally, this proposed rule would also 
amend Note 1 in the definition of ``specially designed'' to remove the 
reference to ECCN 7A994. With the proposed removal of the RS Column 1 
control, 7A994 would only be subject to the Anti-Terrorism reason for 
control and would not need to be included in Note 1.

Proposed Amendments to License Requirements and License Exception 
Eligibility for Certain Uncooled Thermal Imaging Cameras Controlled in 
ECCN 6A003

    On May 22, 2009, BIS published a final rule (74 FR 23941) (``May 
2009 final rule'') that revised license requirements and license 
exception eligibility for certain uncooled thermal imaging cameras in 
ECCN 6A003. That rule revised ECCN 6A003 and Sec.  742.6 to make the RS 
Column 1 reason for control inapplicable for certain transactions for a 
group of countries (now Country Group A:1) if certain uncooled thermal 
imaging cameras are fully packaged for use as consumer ready civil 
products or if such cameras with not more than 111,000 elements are to 
be embedded in civil products by authorized companies.
    While BIS believes that this structure has been useful to address 
foreign availability concerns regarding uncooled thermal imaging 
cameras, the different authorization structure established by the May 
2009 final rule added complexity to the regulations. Further, BIS 
believes that with the implementation of License Exception STA, the 
authorizations described in Sec.  742.6(a)(2)(iii) and (v) are no 
longer necessary for exports or reexports of certain uncooled thermal 
imaging cameras in 6A003. Thus, this proposed rule would remove 
Sec. Sec.  742.6(a)(2) and (a)(4)(ii). Also, this proposed rule would 
remove the current distinction in ECCN 6A003 for RS Column 1 and Column 
2 controls and subject all items in 6A003 to the RS Column 1 reason for 
control. BIS acknowledges that this proposal would require a license 
for certain transactions that currently would not require one, but BIS 
believes that the use of STA will alleviate concerns regarding this 
change. BIS welcomes comments on this proposal.
    Due to the proposed changes to Sec.  742.6 and ECCN 6A003, this 
proposed rule would also amend corresponding footnotes (current 
footnotes 2 and 4) used in the Commerce Country Chart (Supplement No. 1 
to part 738). In addition, this proposed rule would amend License 
Exception APR to remove references in Sec.  740.16(b) to the text 
proposed for removal in Sec.  742.6. This proposed rule would also 
amend Sec.  742.4 to remove similar references to text in Sec.  742.6 
proposed for deletion. Finally, this proposed rule would remove and 
reserve Sec.  743.3, which describes the current reporting requirement 
created by the May 2009 final rule.

Proposed Revisions To Increase Controls for Infrared Detection Items 
Subject to the EAR

    The May 5 proposed rule included a number of proposed revisions to 
the EAR to address concerns regarding the sensitivity of certain items 
providing infrared detection capability. This proposed rule includes 
many of the same proposals, but with some differences noted below. This 
proposed rule would revise certain controls and policies for infrared 
detection items and foreign-made military commodities incorporating 
infrared detection items by amending Sec. Sec.  734.4, 740.2, 740.16, 
740.20, 742.6, and 744.9 of the EAR.

[[Page 8424]]

Revisions to Section 734.4 for 0A919 Foreign Military Commodities

    Section 734.4(a)(5) of the EAR currently provides that there is no 
de minimis level for foreign military commodities, as described in ECCN 
0A919, that incorporate certain infrared detection items. Since this 
proposed rule would expand the scope of items controlled under ECCN 
0A919, as described further below, Sec.  734.4(a)(5) would also be 
revised to reflect changes to that ECCN. However, this proposed rule 
would amend the de minimis treatment for 0A919 items incorporating 
infrared detection content to make them consistent with 0A919 items 
incorporating 600 series or 9x515 content. Thus, under this proposed 
rule, there would be no de minimis level for foreign-made military 
commodities described in ECCN 0A919, which incorporate commodities 
classified under ECCNs 6A002, 6A003, 6A990, or 6A993.a (that meet the 
criteria of Note 3.a to ECCN 6A003.b.4.b), if the 0A919 commodities are 
destined for a country in Country Group D:5. When destined for a 
country outside of Country Group D:5, such 0A919 commodities would be 
subject to the 25% de minimis threshold.

Addition to Section 740.2

    Section 740.2 sets forth restrictions on all license exceptions, 
and the May 5 proposed rule included a restriction in Sec.  740.2(a)(7) 
for certain 6E002 production technology for certain infrared detection 
components in 6A002.a.2 or a.3 as well as for 6E990 technology.
    The interagency review re-examined those technologies that 
warranted additional restrictions under Sec.  740.2. As a result of 
that review, this proposed rule would increase the scope of technology 
subject to the restriction by including certain development technology 
in ECCN 6E001. However, this proposed rule would also narrow the type 
of technology subject to the restriction to focus on technology related 
to the most sensitive dual-use focal plane arrays and image intensifier 
tubes in 6A002 to ensure that the restriction is not overly broad in 
covering technology related to all dual-use components. Thus, under 
this proposed rule, Sec.  740.2(a)(7) would apply to 6E001 or 6E002 
technology required for the development or production of the following 
focal plane arrays: photon detector, microbolometer detector, 
pyroelectric, or multispectral detector infrared focal plane arrays 
(IRFPAs), described in ECCN 6A002, having a peak response within the 
wavelength range exceeding 900 nm but not exceeding 30,000 nm, 
excluding lead sulfide or lead selenide IRFPAs having a peak response 
within the wavelength range exceeding 1,000 nm but not exceeding 5,000 
nm and not exceeding 16 detector elements. Moreover, Sec.  740.2(a)(7) 
would apply to 6E001 or 6E002 technology required for the development 
or production of third generation image intensifier tubes or image 
intensifier tubes greater than third generation (e.g., EBAPS). Such 
6E001 and 6E002 technology would, however, remain eligible for Sec.  
740.11(b)(2) of License Exception GOV.

Restrictions on the Use of License Exception APR

    License Exception APR currently authorizes specified reexports of 
items subject to the EAR by certain countries to specified destinations 
without individual licenses from BIS. The May 5 proposed rule would 
increase the number of items ineligible for paragraph (a) of APR by 
including all items in ECCNs 6A002, 6A003, and 6A990 in the 
restrictions found in paragraph (a)(2). This proposed rule maintains 
that proposed change. Similarly, this proposed rule would also add all 
items in those ECCNs to the scope of items subject to the restriction 
in paragraph (b)(2) on the use of paragraph (b) of APR. Also, this 
proposed rule would further revise paragraph (b) of APR, as previously 
described, with respect to certain uncooled thermal imaging cameras. 
With the proposed removal of paragraph (b)(3), this proposed rule also 
revises paragraph (b) by consolidating the list of items ineligible to 
be reexported under paragraph (b)(1) in one location in paragraph 
(b)(2).

Restrictions on the Use of License Exception STA

    The EAR currently restricts the use of License Exception STA for 
specific commodities controlled by ECCNs 6A002, as well as related 
technology controlled by 6E001 or 6E002, for export or reexport to 
countries listed in Sec.  740.20(c)(2). The May 5 proposed rule would 
amend Sec.  740.20(b)(2) to remove License Exception STA availability 
for additional items related to infrared detection, and this proposed 
rule largely adopts that proposal. This rule maintains those proposed 
changes and would make License Exception STA unavailable for the 
following items: Newly-proposed technology controlled under ECCN 0E987; 
all commodities controlled under ECCN 6A002 or 6A990; software 
controlled under ECCN 6D002 for the ``use'' of commodities controlled 
under ECCN 6A002.b; software controlled under ECCN 6D003.c; software 
controlled under ECCN 6D991 for the ``development,'' ``production,'' or 
``use'' of commodities controlled under ECCNs 6A002, 6A003, or 6A990; 
technology controlled under ECCN 6E001 for the ``development'' of 
commodities controlled under ECCNs 6A002 or 6A003; technology 
controlled under ECCN 6E002 for the ``production'' of commodities 
controlled under ECCNs 6A002 or 6A003; and technology controlled under 
ECCN 6E990.

Revisions to Licensing Policy

    As previously mentioned, this proposed rule does not include the 
worldwide RS control that was proposed in the May 5 proposed rule. 
Thus, this proposed rule also does not include the corresponding 
licensing policy that was proposed in the May 5 proposed rule for Sec.  
742.6(b)(1). However, this proposed rule would revise current Sec.  
742.6(b)(1) to include new licensing policy for 6E001 or 6E002 
technology for the development or production of focal plane arrays or 
image intensifier tubes described in 6A002, or for 6E990 technology. 
Such technology would be subject to a presumption of denial for license 
applications for exports or reexports to countries in Country Group 
D:5. BIS is proposing this change due to the sensitivity of such 
technology.

Revisions to End-Use/End-User Controls

    Section 744.9 currently requires a license for the export or 
reexport to any destination other than Canada for cameras controlled by 
ECCNs 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c when the exporter knows or 
is informed that the item is intended to be used by a ``military end-
user'' or to be incorporated into a ``military commodity'' controlled 
by ECCN 0A919, in addition to other applicable license requirements in 
the EAR.
    This proposed rule, like the May 5 proposed rule, would revise 
Sec.  744.9 to require a license for exports, reexports, or transfers 
(in-country) of commodities controlled by ECCN 0A987 (incorporating 
items in ECCNs 6A002 and 6A003, or certain cameras in 6A993.a), ECCN 
6A002, ECCN 6A003, ECCN 6A990, ECCN 6A993.a commodities meeting the 
criteria of Note 3.a to ECCN 6A003.b.4.b, ECCN 8A002.d.1.c, and ECCN 
8A002.d.2, when the exporter, reexporter, or transferor knows or is 
informed that the item is intended to be used by a ``military end-
user'' or to be incorporated into a ``military commodity'' controlled 
by ECCN

[[Page 8425]]

0A919. Commodities controlled by ECCN 6A993.a as a result of meeting 
the criteria of Note 3.a to ECCN 6A003.b.4.b are cameras with a maximum 
frame rate equal to or less than 9 Hz. Although these 9 Hz cameras are 
subject only to Anti-Terrorism controls, the agencies determined that 9 
Hz cameras are used in foreign-made military commodities and thus 
merited inclusion in Sec.  744.9.
    Based on public comments to the May 5 proposed rule, this proposed 
rule does not include the license requirement for such items if at the 
time of the export, reexport, or transfer, the person is unable to 
determine whether the item will be or is intended to be used by a 
military end user or incorporated into a 0A919 military commodity. 
Increasing the scope of Sec.  744.9 to include both the unable to 
determine standard and the license requirement for 9 Hz cameras (which 
are often low-cost consumer goods sold through distributors or 
storefronts) would have triggered extensive license requirements due to 
the inability to determine whether the items would be purchased by 
military end users. To address concerns with that standard, while still 
making 9 Hz cameras subject to Sec.  744.9 license requirements, this 
proposed rule omits the unable to determine standard and would maintain 
the existing knowledge standard in Sec.  744.9.

Revisions to ECCN 0A919

    ECCN 0A919 currently controls ``military commodities'' produced and 
located outside the United States that are not subject to the ITAR, and 
incorporate one or more cameras controlled under ECCNs 6A003.b.3, 
6A003.b.4.b, or 6A003.b.4.c. In addition, ECCN 0A919 controls such 
``military commodities'' if they incorporate more than a de minimis 
amount of U.S.-origin 600 series content or are the direct products of 
U.S.-origin 600 series technology or software.
    To control the reexport of such military commodities that 
incorporate a wider group of items on the CCL, this proposed rule would 
revise ECCN 0A919 to control military commodities produced outside the 
United States that are not subject to the ITAR, and have any of the 
following characteristics: (i) Incorporate one or more commodities 
classified under ECCNs 6A002, 6A003, or 6A990; (ii) incorporate one or 
more commodities controlled under ECCN 6A993.a as a result of meeting 
the criteria specified in Note 3.a to ECCN 6A003.b.4.b (i.e., having a 
maximum frame rate equal to or less than 9 Hz); (iii) incorporate more 
than a de minimis amount of U.S.-origin ``600 series'' controlled 
content; or (iv) are direct products of U.S.-origin ``600 series'' 
technology or software. This proposed change to ECCN 0A919 mirrors the 
proposal in the May 5 proposed rule.

Establishment of ECCN 0E987

    As with the May 5 proposed rule, this proposed rule would create a 
new ECCN for technology required for the ``development'' or 
``production'' of commodities controlled by ECCN 0A987, if such 
commodities incorporate a focal plane array or image intensifier tube. 
ECCN 0E987 would be subject to RS Column 1 and Anti-Terrorism Column 1 
controls. In addition, items controlled by 0E987 would not be eligible 
for License Exception STA.

Revisions to ECCN 6A002

    ECCN 6A002 currently controls specified optical sensors or 
equipment and components therefor. The Department of State's proposed 
rule for Category XII, which is being published concurrently with this 
rule, proposes the use of ``specially designed'' for certain focal 
plane arrays, image intensifier tubes, and other related items that 
would be subject to the ITAR. Because of that change, this proposed 
rule does not include references in 6A002 to ``permanent encapsulated 
sensor assembly'' or use luminous sensitivity to describe those image 
intensifier tubes subject to the EAR and controlled under 6A002.
    As noted above, this proposed rule does not include the worldwide 
RS control that was proposed in the May 5 proposed rule. This proposed 
rule maintains the existing reasons for control and would revise the 
Related Controls paragraph to include references to controls in USML 
Category XII, as well as proposed controls in ECCN 0A919 and Sec.  
744.9.

Revisions to ECCN 6A003

    ECCN 6A003 currently controls specified cameras, systems or 
equipment and components therefor. As with the May 5 proposed rule, 
this proposed rule would add a reference to USML Category XII(c) in the 
Related Controls paragraph of ECCN 6A003. Also, this rule revises the 
Related Controls references to ECCN 0A919 and Sec.  744.9 to reflect 
the expansion of the applicability of those provisions to all of ECCN 
6A003.
    Due to proposed changes described previously regarding license 
requirements for certain uncooled thermal imaging cameras in ECCN 
6A003, this proposed rule would also revise the applicability of the 
regional stability control to the ECCN by eliminating the RS Column 2 
control and applying the RS Column 1 control to the entire ECCN. This 
proposed change would result in requiring a license for certain items 
in 6A003 that currently may not require a license when exported or 
reexported to certain destinations. While License Exception STA would 
be available for many of these transactions, BIS encourages 
organizations that may be affected by this change to submit public 
comments, including any quantitative data, on the impact of this 
proposal.

Revisions to ECCN 6A990

    Under the Department of State's proposed rule to revise USML 
Category XII, certain read-out integrated circuits (ROICs) would be 
controlled under XII(e). ROICs that are ``specially designed'' for 
focal plane arrays controlled under ECCN 6A002.a.3 would be classified 
under ECCN 6A990 and subject to the RS Column 1 reason for control. 
Unlike the May 5 proposed rule, this proposed rule would also add a 
note to clarify that ROICs ``specially designed'' for civil automotive 
applications would not be controlled under ECCN 6A990. BIS is proposing 
this note in order to address technological and market developments, 
and this note parallels a similar carve out in ECCN 6A003.
    ROICs classified under 6A990 would not be eligible for License 
Exception STA and would be subject to the limitations on the use of 
License Exception APR in Sec.  740.16(a)(2) and (b)(2). This rule also 
proposes to insert references to Category XII(e), ECCN 0A919, and Sec.  
744.9 under the Related Controls paragraph. Also, this rule would allow 
for the use of License Exception LVS for this ECCN with a $500 value 
limit. This change would ensure that controls on ROICs subject to the 
EAR are not more restrictive than controls for ROICs proposed to be 
controlled in USML Category XII(e), which would be eligible for the 
exemption in Sec.  123.16(b)(2) of the ITAR.

Revisions to ECCN 6A993

    As previously mentioned, Sec.  744.9 is proposed to be revised to 
require a license for 9 Hz cameras if exported to a ``military end 
user'' or if incorporated into a ``military commodity.'' To remind 
readers of the applicability of Sec.  744.9 and ECCN 0A919 to 9 Hz 
cameras, this proposed rule would provide a reference to those 
provisions under the Related Controls paragraph of 6A993.

Revisions to ECCNs 6D002, 6D003, and 6D991

    The Wassenaar Arrangement's Lists of Dual-Use Goods and 
Technologies

[[Page 8426]]

impose limited controls on software related to commodities controlled 
under ECCNs 6A002 and 6A003. As a result, the CCL currently has the 
following multilateral and unilateral software controls related to such 
items: ECCN 6D002 (software ``specially designed'' for the ``use'' of 
commodities controlled under ECCN 6A002.b), ECCN 6D003.c (software 
designed or modified for cameras incorporating ``focal plane arrays'' 
specified by ECCN 6A002.a.3.f and designed or modified to remove a 
frame rate restriction and allow the camera to exceed the frame rate 
specified in ECCN 6A003.b.4 Note 3.a), and ECCN 6D991 (software 
specially designed for the ``use'' of commodities controlled under ECCN 
6A002.a.1.d).
    To address concerns regarding the lack of comprehensive software 
controls related to commodities controlled under ECCNs 6A002 and 6A003, 
this proposed rule would consolidate existing, unilateral software 
controls and would expand them to revise ECCN 6D991 to also control 
software, not elsewhere specified, that is ``specially designed'' for 
the ``development,'' ``production,'' or ``use'' of commodities 
controlled by ECCNs 6A002 or 6A003. Under this proposed rule, such 
software would be subject to the RS Column 1 reason for control. Also, 
this proposed rule would remove eligibility to use License Exception 
TSR for the software described above in ECCNs 6D002 and 6D003.c.
    To prevent confusion over multiple ECCNs potentially controlling 
the same software, this proposed rule would add language to the Related 
Controls paragraphs of ECCN 6D991 to confirm that software currently 
controlled under ECCNs 6D002 and 6D003.c would remain controlled under 
those provisions. To reflect this understanding, this proposed rule 
would also revise the Related Controls paragraphs of ECCNs 6D002 and 
6D003 to provide references to ECCNs 6D991.

Revisions to ECCNs 6E001 and 6E002

    ECCNs 6E001 and 6E002 currently control ``development'' and 
``production'' technology, respectively, related to multiple ECCNs in 
Category 6, including items related to infrared detection in ECCNs 
6A002 and 6A003. This proposed rule would remove eligibility for 
License Exception TSR for all 6E001 or 6E002 technology related to 
commodities controlled under 6A002 or 6A003, and this proposed rule 
would add guidance to the Related Controls paragraphs in ECCNs 6E001 
and 6E002 to provide clarity on technology controls related to 
commodities subject to the ITAR.

Proposed Establishment of ``600 Series'' for Military Fire Control, 
Laser, Imaging, and Guidance and Control Items Under ECCNs 7A611, 
7B611, 7D611, and 7E611

    This proposed rule would establish a ``600 series'' by revising 
ECCN 7A611 and adding new ECCNs 7B611, 7D611, and 7E611 for military 
fire control, laser, imaging, and guidance and control commodities, 
software, and technology. Categories 6 and 7 of the CCL currently 
control certain laser, imaging, and guidance and control items. In 
order to ease understanding and use of this ``600 series,'' BIS is 
proposing to consolidate such controls under Category 7 rather than 
both Categories 6 and 7. However, should readers look for such 600 
series items in Category 6, this proposed rule would amend ECCN 6A611 
to refer readers to Category 7 to locate the appropriate controls. ECCN 
6A611 was added to the CCL by a previously published final rule 
entitled Revisions to the Export Administration Regulations (EAR): 
Control of Military Electronic Equipment and Other Items the President 
Determines No Longer Warrant Control Under the United States Munitions 
List (USML), 79 FR 37551 (July 1, 2014). Also, to assist readers in 
locating controls for navigation and avionics items ``specially 
designed'' for a military application, this proposed rule would move 
the current heading of ECCN 7A611 into the Related Controls paragraph 
of proposed ECCN 7A611.
    Under this proposed ``600 series,'' ECCN 7A611 would control 
military fire control, laser, imaging, and guidance and control 
equipment that would be removed from USML Category XII and that are not 
covered by an existing ECCN subject to controls for reasons other than 
Anti-Terrorism (AT) reasons. Due to the increased use of ``specially 
designed'' in the proposed USML Category XII and to ensure that no 
current defense articles are inadvertently decontrolled, ECCN 7A611 
would use ``specially designed'' as the primary control parameter in 
paragraphs .a through .e, which would control certain guidance, 
navigation, or control systems; inertial measurement units; 
accelerometers; gyros or angular rate sensors; or gravity meters 
(gravimeters). Paragraph .x would control ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' that are ``specially designed'' 
for a commodity controlled by ECCN 7A611 (except 7A611.y) or a defense 
article in USML Category XII and not controlled elsewhere on the USML 
or in 7A611.y or 3A611.y. All items controlled under 7A611 (excluding 
7A611.y) would be controlled for NS, RS, AT, and UN reasons. Paragraph 
.y would control specific ``parts,'' ``components,'' ``accessories,'' 
and ``attachments'' ``specially designed'' for a commodity subject to 
control in ECCN 7A611, or a defense article in USML Category XII and 
not elsewhere specified on the USML or in the CCL, and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' therefor. No items would be listed in 7A611.y under this 
proposed rule, but should any items be added, they would be subject to 
AT controls only.
    This proposed rule does not include any of the items enumerated 
under ECCN 6A615 in the May 5 proposed rule in ECCN 7A611. Due to the 
increased use of ``specially designed'' in USML Category XII in the 
State Department's corresponding proposed rule, BIS believes that many 
of the items previously proposed for control under ECCN 6A615 would be 
controlled under USML Category XII. In addition, after reviewing public 
comments, BIS believes that many of the items proposed for control 
under ECCN 6A615.c in the May 5 proposed rule would be adequately 
captured as dual-use items under ECCN 6C004.
    New ECCN 7B611 would impose controls on test, inspection, and 
production equipment and related commodities ``specially designed'' for 
military fire control, laser, imaging, and guidance and control 
equipment. Paragraph .a would control such equipment ``specially 
designed'' for the ``development,'' ``production,'' repair, overhaul, 
or refurbishing of items controlled in ECCN 7A611 (except 7A611.y) or 
commodities in USML Category XII that are not enumerated in USML 
Category XII or controlled by a ``600 series'' ECCN. Paragraph .b would 
control environmental test facilities ``specially designed'' for 
certification, qualification, or testing of commodities controlled in 
ECCN 7A611 (except 7A611.y) or commodities in USML Category XII that 
are not enumerated in USML Category XII or a ``600 series'' ECCN. 
Paragraph .c would control field test equipment ``specially designed'' 
to evaluate or calibrate the operation of systems described in USML 
Category XII(a), (b), or (c). Paragraphs .d through .w are reserved. 
Paragraph .x would control parts, components, accessories, and 
attachments that are ``specially designed'' for such test, inspection 
and production equipment that are not enumerated on the USML or 
controlled by another ``600 series'' ECCN. Items in ECCN 7B611 would be 
controlled for NS, RS, AT, and UN reasons.

[[Page 8427]]

    New ECCN 7D611 would control ``software'' ``specially designed'' 
for the ``development,'' ``production,'' operation, or maintenance of 
commodities controlled by 7A611 or 7B611. Such software would be 
controlled for NS, RS, AT, and UN reasons. Any software added to 
7D611.y would be controlled for AT reasons only.
    New ECCN 7E611 would control ``technology'' ``required'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul, or refurbishing of items controlled by 7A611, 7B611, 
or 7D611. Such technology would be controlled for NS, RS, AT, and UN 
reasons. Any technology added to 7E611.y would be controlled for AT 
reasons only. As described in proposed Sec.  742.6(a)(8), the RS 
control would impose a license requirement for exports and reexports of 
technology in 7E611.a to all destinations, including Canada (all other 
technology in 7E611, other than 7E611.y, would be subject to an RS 
Column 1 control). BIS believes that this worldwide RS control would 
only affect technical data currently controlled in USML Category XII(f) 
that is not eligible for the Canadian exemption under Supplement No. 1 
to part 126 of the ITAR. As described in Sec.  742.6(b)(1), 7E611.a 
technology would be subject to the same licensing policy as other 600 
series items. In addition, License Exception STA would not be available 
for 7E611.a technology but would be available for technology in 7E611.b 
or .c for exports or reexports to Country Group A:5.

Proposed Revisions to Other Existing ECCNs

    The May 5 proposed rule included revisions to many existing dual-
use ECCNs to provide cross references to controls for similar items 
subject to the ITAR under the proposed revisions to USML Category XII. 
This proposed rule includes revisions to the same ECCNs but updates 
many of the cross references to account for changes since the State 
Department's May 5 proposal.

Revisions to ECCN 0A987

    ECCN 0A987 currently controls specified optical sighting devices, 
and this proposed rule would revise ECCN 0A987.f to specify that the 
entry controls laser aiming devices or laser illuminators ``specially 
designed'' for use on firearms, and having an operational wavelength 
exceeding 400 nm but not exceeding 710 nm. A proposed note to ECCN 
0A987.f would further specify that the entry does not control laser 
boresighting devices that must be placed in the bore or chamber to 
provide a reference for aligning the firearms sights. This proposed 
rule would also provide jurisdictional guidance in the Related Controls 
paragraph to more clearly delineate jurisdiction between USML Category 
XII and ECCN 0A987.

Revisions to ECCN 2A984

    ECCN 2A984 currently controls concealed object detection equipment 
that operates in the frequency range from 30 GHz to 3000 GHz and has a 
spatial resolution of 0.5 milliradians up to and including 1 
milliradian at a standoff distance of 100 meters. Under the Department 
of State's proposed revisions to USML Category XII, certain terahertz 
imaging systems would be enumerated under USML Category XII(c). 
Consequently, this proposed rule would add a reference to Category 
XII(c) in the Related Controls paragraph of ECCN 2A984.

Revisions to ECCN 6A004

    ECCN 6A004 currently controls optical equipment and components, 
including gimbals meeting a number of parameters, including slew, 
bandwidth, angular pointing error, diameter, and angular acceleration. 
The Department of State proposes to control certain gimbals under 
Category XII(e). To aid in properly determining jurisdiction and 
classification of gimbals, this proposed rule would amend the Related 
Controls paragraph of ECCN 6A004 to reference gimbals controlled under 
USML Category XII(e).

Revisions to ECCN 6A005

    ECCN 6A005 currently controls specified lasers, components and 
optical equipment. The Department of State's corresponding proposed 
rule would control certain laser systems and lasers under USML Category 
XII(b) and (e), respectively. To aid in properly determining 
jurisdiction and classification, this proposed rule would revise the 
Related Controls paragraph of ECCN 6A005 to refer readers back to USML 
Category XII(b) and (e) for laser systems or lasers subject to the 
ITAR. Additionally, this proposed rule would add a reference in the 
Related Controls paragraph to USML Category XVIII for certain laser-
based directed energy weapon items.

Revisions to ECCNs 6A007 and 6A107

    ECCNs 6A007 and 6A107 currently control certain gravity meters 
(gravimeters) and gravity gradiometers. Under the State Department's 
proposed rule, certain gravity meters and gravity gradiometers subject 
to the ITAR would be controlled under USML Category XII(d). 
Consequently, this proposed rule would add references to the Related 
Controls paragraphs of ECCNs 6A007 and 6A107 to refer readers to that 
paragraph in Category XII. This proposed rule also adds a reference to 
ECCN 7A611 in the Related Controls paragraphs of those ECCNs.

Revisions to ECCN 6A008

    ECCN 6A008 currently controls radar systems, equipment, and 
assemblies, including certain laser detection and ranging (LADAR) and 
light detection and ranging (LIDAR) equipment under ECCN 6A008.j. The 
Department of State's proposed rule would control certain LIDAR, LADAR, 
and range-gated systems in USML Category XII(b). Consequently, this 
proposed rule would amend the Related Controls paragraph of ECCN 6A008 
to add references to those provisions of Category XII.

Revisions to ECCNs 7A001 and 7A101

    ECCNs 7A001 and 7A101 control certain accelerometers. The 
Department of State's proposed rule would control certain 
accelerometers subject to the ITAR under USML Category XII(e). 
Therefore, this proposed rule would amend the Related Controls 
paragraphs of ECCNs 7A001 and 7A101 to add references to USML Category 
XII(d). This proposed rule also adds references to ECCN 7A611 in the 
Related Controls paragraphs of those ECCNs.

Revisions to ECCNs 7A002 and 7A102

    ECCNs 7A002 and 7A102 control certain gyros or angular rate 
sensors. Under the State Department's proposed rule, certain gyros or 
angular rate sensors would be subject to the ITAR under USML Category 
XII(e). This proposed rule would amend the Related Controls paragraphs 
of ECCNs 7A002 and 7A102 to add references to USML Category XII(e). 
This proposed rule also adds references to ECCN 7A611. For the Related 
Controls paragraph in ECCN 7A102, this proposed rule would also add 
references to ECCNs 7A002 and 7A994.

Revisions to ECCN 7A003

    ECCN 7A003 controls inertial measurement equipment or systems. 
Under the State Department's proposed rule, certain guidance or 
navigation systems would be subject to the ITAR under USML Category 
XII(d). This proposed rule would amend the Related Controls paragraph 
of ECCN 7A003 to add a reference to that USML entry. Also, this 
proposed rule would add a reference to ECCN 7A611.

[[Page 8428]]

Revisions to ECCN 7A005

    ECCN 7A005 currently controls specified Global Navigation Satellite 
Systems (GNSS) receiving equipment. This proposed rule would amend the 
Related Controls section of ECCN 7A005 to use ``GNSS'' in place of 
``GPS'' and to provide a reference to GNSS receiving equipment subject 
to the ITAR under USML Category XII.

Revisions to ECCN 8A002

    To reflect the expansion of the scope of Sec.  744.9 to apply to 
8A002.d.1.c and .d.2 items, this proposed rule would add an additional 
sentence regarding Sec.  744.9 to the Related Controls paragraph of 
8A002.

Effects of This Proposed Rule

De minimis

    The April 16 (initial implementation) rule imposed certain unique 
de minimis requirements on items controlled under the new ``600 
series'' ECCNs. Section 734.3 of the EAR provides, inter alia, that 
under certain conditions, items made outside the United States that 
incorporate items subject to the EAR are not subject to the EAR if they 
do not exceed a de minimis percentage of controlled U.S.-origin 
content. Under the April 16 (initial implementation) rule, there is no 
de minimis eligibility for ``600 series'' items destined for countries 
subject to a U.S. arms embargo, but there is a 25% de minimis 
percentage for ``600 series'' items destined for all countries not 
subject to U.S. arms embargoes. The fire control, laser, imaging, and 
guidance and control items that would be subject to the EAR as a result 
of this proposed rule would become eligible for de minimis treatment, 
so long as they are not destined for a country subject to a U.S. arms 
embargo.

Use of License Exceptions

    Unless subject to the restrictions on the use of STA in Sec.  
740.20(b)(2), many of the fire control, laser, imaging, and guidance 
and control items described in this proposed rule would become eligible 
for several license exceptions, including STA, which would be available 
for exports to certain government agencies of NATO and other multi-
regime allies. The exchange of information and statements required 
under STA is substantially less burdensome than the license application 
requirements currently required under the ITAR. Some items covered by 
this rule also would be eligible for the following license exceptions: 
LVS (limited value shipments), up to $1500, and RPL (servicing and 
parts replacement).

Alignment With the Wassenaar Arrangement Munitions List (WAML)

    The Administration has stated since the beginning of the Export 
Control Reform Initiative that the reforms will be consistent with U.S. 
obligations to the multilateral export control regimes. Accordingly, 
the Administration will, in this proposed rule, exercise its national 
discretion to implement, clarify, and, to the extent feasible, align 
its controls with those of the regimes. USML Category XII encompasses 
multiple WAML categories, including ML 5 (e.g., fire control and range-
finding systems), ML 11 (e.g., ``guidance and navigation equipment''), 
and ML 15 (e.g., imaging equipment). For simplicity, this proposed rule 
uses one of these categories--ML 11 (``electronic equipment specially 
designed for military use,'' including ``guidance and navigation 
equipment'')--to add items moving from USML Category XII to the new 600 
series ECCNs ending in ``11.''

Request for Comments

    BIS seeks comments on this proposed rule. BIS will consider all 
comments received on or before April 4, 2016. All comments must be in 
writing and submitted via one or more of the methods listed under the 
ADDRESSES caption to this notice. All comments (including any personal 
identifiable information or information for which a claim of 
confidentially is asserted either in those comments or their 
transmittal emails) will be available for public inspection and 
copying. Parties who wish to comment anonymously may do so by 
submitting their comments via www.regulations.gov, leaving the fields 
for information that would identify the commenter blank, and including 
no identifying information in the comment itself.

Export Administration Act

    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 7, 2015, 80 FR 48233 (August 11, 2015), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act. BIS continues to carry out the provisions of the 
Export Administration Act, as appropriate and to the extent permitted 
by law, pursuant to Executive Order 13222, as amended by Executive 
Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
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, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is 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 OMB 
control number. This proposed rule would affect two approved 
collections: Simplified Network Application Processing + System 
(control number 0694-0088), which includes, among other things, license 
applications, and License Exceptions and Exclusions (0694-0137).
    As stated in the proposed rule published on July 15, 2011 (76 FR 
41958) (``July 15 proposed rule''), BIS initially believed that the 
combined effect of all rules to be published adding items to the EAR 
that will be removed from the ITAR as part of the administration's 
Export Control Reform Initiative would increase the number of license 
applications to be submitted by approximately 16,000 annually. As the 
review of the USML has progressed, the interagency group has gained 
more specific information about the number of items that will come 
under BIS jurisdiction and whether those items would be eligible for 
export under license exceptions. As of June 21, 2012, BIS revised that 
estimate to an increase in license applications of 30,000 annually, 
resulting in an increase in burden hours of 8,500 (30,000 transactions 
at 17 minutes each) under control number 0694-0088. BIS continues to 
believe that its revised estimate is accurate.
    Some items formerly on the USML would become eligible for License

[[Page 8429]]

Exception STA under this rule. As stated in the July 15 proposed rule, 
BIS believes that the increased use of License Exception STA resulting 
from the combined effect of all rules to be published adding items to 
the EAR that would be removed from the ITAR as part of the 
Administration's Export Control Reform Initiative would increase the 
burden associated with control number 0694-0137 by about 23,858 hours 
(20,450 transactions at 1 hour and 10 minutes each).
    BIS expects that this increase in burden would be more than offset 
by a reduction in burden hours associated with approved collections 
related to the ITAR. This proposed rule addresses controls on fire 
control, laser, imaging, and guidance and control items. With few 
exceptions, most exports of such items, even when destined to NATO 
member states and other close allies, require State Department 
authorization. In addition, the exports of technology necessary to 
produce such items in the inventories of the United States and its NATO 
and other close allies require State Department authorizations. Under 
the EAR, as proposed, such technology that would be subject to the EAR 
would become eligible for export to NATO member states and other close 
allies under License Exception STA unless otherwise specifically 
excluded. Use of License Exception STA imposes a paperwork and 
compliance burden because, for example, exporters must furnish 
information about the item being exported to the consignee and obtain 
from the consignee an acknowledgement and commitment to comply with the 
EAR. However, the Administration believes that complying with the 
requirements of STA is likely less burdensome than applying for 
licenses. For example, under License Exception STA, a single consignee 
statement can apply to an unlimited number of products, need not have 
an expiration date, and need not be submitted to the government in 
advance for approval. Suppliers with regular customers can tailor a 
single statement and assurance to match their business relationship 
rather than applying repeatedly for licenses with every purchase order 
to supply reliable customers in countries that are close allies or 
members of export control regimes or both.
    Control number 0694-0137 also includes thermal imaging camera 
reporting under Sec.  743.3. This proposed rule would remove the 
reporting requirement in Sec.  743.3. Thus, BIS estimates this 
elimination would reduce the total annual burden hours in control 
number 0694-0137 by 60 hours annually (60 reports at 1 hour each).
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 
601 et seq., generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to the notice and comment 
rulemaking requirements under the Administrative Procedure Act (5 
U.S.C. 553) or any other statute, unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Under section 605(b) of the RFA, however, if 
the head of an agency (or his or her designee) certifies that a rule 
will not have a significant impact on a substantial number of small 
entities, the statute does not require the agency to prepare a 
regulatory flexibility analysis. Pursuant to section 605(b), the Chief 
Counsel for Regulation, Department of Commerce, submitted a memorandum 
to the Chief Counsel for Advocacy, Small Business Administration, 
certifying that the May 5 proposed rule would not have a significant 
impact on a substantial number of small entities. The rationale for 
that certification was set forth in the preamble to that proposed rule. 
Although BIS received no comments on that rationale, and has 
accordingly made no changes to the proposed rule based on the RFA 
certification, BIS has determined that, in the interest of openness and 
transparency, it will briefly restate the rationale behind the 
certification here.
    This proposed rule is part of the Administration's Export Control 
Reform Initiative, which seeks to revise the USML to a positive list--
one that does not use generic, catch-all controls for items listed--and 
to move some items that the President has determined no longer merit 
control under the ITAR to control under the CCL.
    Although BIS does not collect data on the size of entities that 
apply for and are issued export licenses, and is therefore unable to 
estimate the exact number of small entities--as defined by the Small 
Business Administration's regulations implementing the RFA--BIS 
acknowledges that some small entities may be affected by this proposed 
rule.
    The main effects on small entities resulting from this rule will be 
in application times, costs, and delays in receiving licenses to export 
goods subject to the CCL. However, while small entities may experience 
some costs and time delays for exports due to the license requirements 
of the CCL, these costs and delays will likely be significantly less 
than they were for items previously subject to the USML. BIS believes 
that in fact this rule will result in significantly reduced 
administrative costs and delays for exports of items that will, upon 
this rule's implementation, be subject to the EAR rather than the ITAR. 
Currently, USML applicants must pay to use the USML licensing procedure 
even if they never actually are authorized to export. Registration fees 
for manufacturers and exporters of articles on the USML start at $2,250 
per year, increase to $2,750 for organizations applying for one to ten 
licenses per year and further increases to $2,750 plus $250 per license 
application (subject to a maximum of three percent of total application 
value) for those who need to apply for more than ten licenses per year. 
By contrast, BIS is statutorily prohibited from imposing licensing 
fees. In addition, exporters and reexporters of goods that would become 
subject to the EAR under this rule would need fewer licenses because 
their transactions would become eligible for license exceptions that 
were not available under the ITAR. Additionally, the ITAR controls 
parts and components even when they are incorporated--in any amount--
into a foreign-made product. That limitation on the use of U.S.-made 
goods subject to the ITAR discouraged foreign manufacturers from 
importing U.S. goods. However, the EAR has a de minimis exception for 
U.S.-manufactured goods that are incorporated into foreign-made 
products. This exception may benefit small entities by encouraging 
foreign producers to use more U.S.-made items in their goods.
    Even where an exporter or reexporter would need to obtain a license 
under the EAR, that process is both cheaper and the process is more 
flexible than obtaining a license under the ITAR. For example, unlike 
the ITAR, the EAR does not require license applicants to provide BIS 
with a purchase order with the application, meaning that small (or any) 
entities can enter into negotiations or contracts for the sale of goods 
without having to caveat any sale presentations with a reference to the 
need to obtain a license under the ITAR before shipment can occur. 
Second, the EAR allows license applicants to obtain licenses to cover 
all expected exports or reexports to a particular consignee over the 
life of a license, rather than having to obtain a new license for every 
transaction.
    In short, BIS expects that the changes to the EAR proposed in this 
rule will have a positive effect on all affected

[[Page 8430]]

entities, including small entities. While BIS acknowledges that this 
rule may have some cost impacts to small (and other) entities, those 
costs are more than offset by the benefits to the entities from the 
licensing procedures under the EAR, which are much less costly and less 
time consuming than the procedures under the ITAR. Accordingly, the 
Chief Counsel for Regulation for the Department of Commerce has 
certified that this rule, if implemented, will not have a significant 
economic impact on a substantial number of small entities. Accordingly, 
an initial regulatory flexibility analysis is not required, and none 
has been prepared.

List of Subjects

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and 
patents, Research science and technology.

15 CFR Part 738

    Exports.

15 CFR Part 740

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, the Export Administration 
Regulations (15 CFR parts 730-774) are proposed to be amended as 
follows:

PART 734--[AMENDED]

0
1. The authority citation for 15 CFR part 734 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013); 
Notice of August 7, 2015, 80 FR 48233 (August 11, 2015); Notice of 
November 12, 2015, 80 FR 70667 (November 13, 2015).

0
2. Section 734.4 is amended by:
0
a. Removing and reserving paragraph (a)(3);
0
b. Removing the Note to paragraph (a)(3); and
0
c. Revising paragraph (a)(5) to read as follows:


Sec.  734.4  De minimis U.S. content.

    (a) * * *
    (5) There is no de minimis level for foreign-made ``military 
commodities'' incorporating one or more of the commodities described in 
ECCN 0A919.a.1 when destined for a country listed in Country Group D:5 
of Supplement No. 1 to part 740 of the EAR.
* * * * *

PART 738--[AMENDED]

0
3. The authority citation for 15 CFR part 738 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 7, 2015, 80 FR 48233 (August 11, 2015).

0
4. In Supplement No. 1 to part 738, The Commerce Country Chart, is 
amended by:
0
a. Removing references to footnote number 2 in the rows for Albania, 
Cyprus, Malta, and South Africa;
0
b. Removing references to footnote number 4 in the rows for Austria; 
Cyprus; Finland; Ireland; Korea, South; Malta; South Africa; Sweden; 
and Switzerland; and
0
c. Removing and reserving footnotes 2 and 4 to the table.

PART 740--[AMENDED]

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

    Authority: 50 U.S.C. app. 2401 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; Notice 
of August 7, 2015, 80 FR 48233 (August 11, 2015).

0
6. Section 740.2 is amended by:
0
a. Removing and reserving paragraph (a)(9), and
0
b. Revising paragraph (a)(7) to read as follows:


Sec.  740.2  Restrictions on all License Exceptions.

    (a) * * *
    (7) With the exception of License Exception GOV (Sec.  
740.11(b)(2)), license exceptions are not available for the following 
6E001 or 6E002 technology:
    (i) Technology required for the ``development'' or ``production'' 
of photon detector, microbolometer detector, pyroelectric, or 
multispectral detector infrared focal plane arrays (IRFPAs), described 
in ECCN 6A002, having a peak response within the wavelength range 
exceeding 900 nm but not exceeding 30,000 nm, excluding lead sulfide or 
lead selenide IRFPAs having a peak response within the wavelength range 
exceeding 1,000 nm but not exceeding 5,000 nm and not exceeding 16 
detector elements; or
    (ii) Technology required for the ``development'' or ``production'' 
of third generation or greater (e.g., EBAPS) image intensifier tubes 
described in ECCN 6A002.
* * * * *
0
7. Section 740.16 is amended by:
0
a. Revising paragraphs (a)(2), (b)(1), and (b)(2), and
0
b. Removing and reserving (b)(3), to read as follows:


Sec.  740.16  Additional permissive reexports (APR).

    (a) * * *
    (2) The commodities being reexported are not controlled for NP, CB, 
MT, SI or CC reasons and are not military commodities described in ECCN 
0A919; commodities described in 3A001.b.2 or b.3 (except those that are 
being reexported for use in civil telecommunications applications); or 
commodities described in ECCNs 6A002, 6A003, or 6A990; and
* * * * *
    (b) * * *
    (1) Eligible commodities may be reexported to and among 
destinations in Country Group A:1 and Hong Kong for use or consumption 
within a destination in Country Group A:1 (see Supplement No. 1 to part 
740) or Hong Kong, or for reexport from such country in accordance with 
other provisions of the EAR.
    (2) Commodities not eligible for reexport under paragraph (b)(1) 
are:
    (i) Commodities controlled for nuclear nonproliferation or missile 
technology reasons;
    (ii) Commodities in 3A001.b.2 or b.3 (except those that are being 
reexported for use in civil telecommunications applications);
    (iii) ``Military commodities'' described in ECCN 0A919; or
    (iv) Commodities described in ECCNs 6A002, 6A003, or 6A990, or 
commodities described in ECCN 0A987 incorporating an image intensifier 
tube.

[[Page 8431]]

    (3) [RESERVED]
* * * * *
0
8. Section 740.20 is amended by revising paragraphs (b)(2)(ii) and 
(b)(2)(x), to read as follows:


Sec.  740.20  License Exception Strategic Trade Authorization (STA).

* * * * *
    (b) * * *
    (2) * * *
    (ii) License Exception STA may not be used for any item controlled 
under ECCNs 0A981, 0A982, 0A983, 0A985, 0E982, or 0E987.
* * * * *
    (x) License Exception STA may not be used for items controlled by 
ECCNs 6A002; 6A990; 6D002 (software specially designed for the ``use'' 
of commodities controlled under 6A002.b); 6D003.c; 6D991 (software 
``specially designed'' for the ``development,'' ``production,'' or 
``use'' of commodities controlled under 6A002, 6A003, or 6A990); 6E001 
(``technology'' for the ``development'' of commodities controlled under 
ECCNs 6A002 or 6A003); 6E002 ``technology'' (for the ``production'' of 
commodities controlled under ECCNs 6A002 or 6A003); or 6E990.
* * * * *

PART 742--[AMENDED]

0
9. The authority citation for 15 CFR part 742 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Notice of August 7, 2015, 80 FR 48233 (August 11, 2015); Notice of 
November 12, 2015, 80 FR 70667 (November 13, 2015).

0
10. Section 742.4 is amended by revising paragraph (a) to read as 
follows:


Sec.  742.4  National security.

    (a) License requirements. It is the policy of the United States to 
restrict the export and reexport of items that would make a significant 
contribution to the military potential of any other country or 
combination of countries that would prove detrimental to the national 
security of the United States. Accordingly, a license is required for 
exports and reexports to all destinations, except Canada, for all items 
in ECCNs on the CCL that include NS Column 1 in the Country Chart 
column of the ``License Requirements'' section. A license is required 
to all destinations except those in Country Group A:1 (see Supplement 
No. 1 to part 740), for all items in ECCNs on the CCL that include NS 
column 2 in the Commerce Country Chart column of the ``License 
Requirements'' section. The purpose of the controls is to ensure that 
these items do not make a contribution to the military potential of 
countries in Country Group D:1 (see Supplement No. 1 to part 740 of the 
EAR) that would prove detrimental to the national security of the 
United States. License Exception GBS is available for the export and 
reexport of certain national security controlled items to Country Group 
B (see Sec.  740.4 and Supplement No. 1 to part 740 of the EAR).
* * * * *
0
11. Section 742.6 is amended by:
0
a. Removing and reserving paragraphs (a)(2) and (a)(4)(ii);
0
b. Revising the last sentence of paragraph (a)(1);
0
c. Adding paragraph (a)(8); and
0
d. Revising paragraph (b)(1), to read as follows:


Sec.  742.6  Regional stability.

    (a) * * *
    (1) * * * Transactions described in paragraph (a)(3) of this 
section are subject to the RS Column 1 license requirements set forth 
in that paragraph rather than the license requirements set forth in 
this paragraph (a)(1).
* * * * *
    (8) Special worldwide RS license requirement for ECCN 7E611.a. A 
license is required to export or reexport items described in ECCN 
7E611.a to all destinations, including Canada.
* * * * *
    (b) * * *
    (1) Licensing policy for RS Column 1 items and ECCN 7E611.a.
    (i) 9x515 and ``600 series'' ECCNs. Applications for exports and 
reexports of 9x515 and ``600 series'' items will be reviewed on a case-
by-case basis to determine whether the transaction is contrary to the 
national security or foreign policy interests of the United States, 
including the foreign policy interest of promoting the observance of 
human rights throughout the world. Other applications for exports and 
reexports described in paragraph (a)(1), (6), (7), or (8) of this 
section will be reviewed on a case-by-case basis to determine whether 
the export or reexport could contribute directly or indirectly to any 
country's military capabilities in a manner that would alter or 
destabilize a region's military balance contrary to the foreign policy 
interests of the United States. Applications for reexports of items 
described in paragraph (a)(3) of this section will be reviewed applying 
the policies for similar commodities that are subject to the ITAR. 
Applications for export or reexport of items classified under any 9x515 
or ``600 series'' ECCN requiring a license in accordance with paragraph 
(a)(1) or (8) of this section will also be reviewed consistent with 
United States arms embargo policies in Sec.  126.1 of the ITAR if 
destined to a country set forth in Country Group D:5 in Supplement No. 
1 to part 740 of the EAR. Applications for export or reexport of 
``parts,'' ``components,'' ``accessories,'' ``attachments,'' 
``software,'' or ``technology'' ``specially designed'' or otherwise 
required for the F-14 aircraft will generally be denied. When destined 
to the People's Republic of China or a country listed in Country Group 
E:1 in Supplement No. 1 to Part 740 of the EAR, items classified under 
any 9x515 ECCN will be subject to a policy of denial.
    (ii) Certain infrared detection technology. Applications for 
exports and reexports to a country listed in Country Group D:5 (in 
Supplement No. 1 to part 740 of the EAR) of technology controlled under 
6E001 for the development of focal plane arrays or image intensifier 
tubes described in 6A002, technology controlled under 6E002 for the 
production of focal plane arrays or image intensifier tubes described 
in 6A002, or technology controlled under 6E990 will be reviewed with a 
presumption of denial.
* * * * *

PART 743--[AMENDED]

0
12. The authority citation for 15 CFR part 743 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637 of 
March 8, 2013, 78 FR 16129 (March 13, 2013); 78 FR 16129; Notice of 
August 7, 2015, 80 FR 48233 (August 11, 2015).

0
13. Part 743 is amended by removing and reserving Sec.  743.3.

PART 744--[AMENDED]

0
14. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3

[[Page 8432]]

CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice 
of January 21, 2015, 80 FR 3461 (January 22, 2015); Notice of August 
7, 2015, 80 FR 48233 (August 11, 2015); Notice of September 18, 
2015, 80 FR 57281 (September 22, 2015); Notice of November 12, 2015, 
80 FR 70667 (November 13, 2015).

0
15. Section 744.9 is amended by revising the heading and paragraphs (a) 
and (b) to read as follows:


Sec.  744.9  Restrictions on certain exports and reexports of certain 
cameras, systems, or equipment.

    (a) General prohibitions. In addition to the applicable license 
requirements for national security, regional stability, anti-terrorism 
and United Nations embargo reasons in Sec. Sec.  742.4, 742.6, 742.8, 
746.1(b), and 746.3 of the EAR, a license is required to export, 
reexport, or transfer (in-country) to any destination other than Canada 
commodities described in ECCNs 0A987 (incorporating commodities 
controlled by ECCNs 6A002 or 6A003, or commodities controlled by 
6A993.a that meet the criterion of Note 3.a to 6A003.b.4), 6A002, 
6A003, 6A990, or 6A993.a (having a maximum frame rate equal to or less 
than 9 Hz and thus meeting the criteria of Note 3.a to 6A003.b.4), 
8A002.d.1.c, or 8A002.d.2 if at the time of export, reexport, or 
transfer, the exporter, reexporter, or transferor knows or is informed 
that the item will be or is intended to be:
    (1) Used by a ``military end-user,'' as defined in paragraph (d) of 
this section; or
    (2) Incorporated into a ``military commodity'' controlled by ECCN 
0A919.
    (b) Additional prohibition on exporters, reexporters, or 
transferors informed by BIS. BIS may inform an exporter, reexporter, or 
transferor, either individually by specific notice or through amendment 
to the EAR, that a license is required for the export, reexport, or 
transfer of commodities described in ECCNs 0A987 (incorporating 
commodities controlled by ECCNs 6A002 or 6A003, or commodities 
controlled by 6A993.a that meet the criterion of Note 3.a to 
6A003.b.4), 6A002, 6A003, 6A990, or 6A993.a (having a maximum frame 
rate equal to or less than 9 Hz and thus meeting the criteria of Note 
3.a to 6A003.b.4), 8A002.d.1.c, or 8A002.d.2 to specified end users, 
because BIS has determined that there is an unacceptable risk of 
diversion to the users or unauthorized incorporation into the 
``military commodities'' described in paragraph (a) of this section. 
Specific notice is to be given only by, or at the direction of, the 
Deputy Assistant Secretary for Export Administration. When such notice 
is provided orally, it will be followed by a written notice within two 
working days signed by the Deputy Assistant Secretary for Export 
Administration.
* * * * *

PART 772--[AMENDED]

0
16. The authority citations paragraph for part 772 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
7, 2015, 80 FR 48233 (August 11, 2015).

0
17. Section 772.1 is amended by revising the last sentence in Note 1 to 
the definition of ``specially designed,'' to read as follows:


Sec.  772.1  Definitions of terms as used in the Export Administration 
Regulations (EAR).

* * * * *
    Specially designed.
* * * * *
    Note 1: * * * For purposes of ``specially designed,'' ECCNs 0B986, 
0B999, 0D999, 1B999, 1C992, 1C995, 1C997, 1C999, 6A998 (except for .b), 
and 9A991 are treated as ECCNs controlled exclusively for AT reasons.
* * * * *

PART 774--[AMENDED]

0
18. The authority citations paragraph for part 774 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 7, 2015, 80 FR 48233 (August 11, 2015).

Supplement No. 1 to Part 774 [Amended]

0
19. In Supplement No. 1 to part 774, Category 0, ECCN 0A919 is amended 
by revising the Items paragraph of the List of Items Controlled section 
to read as follows:

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

* * * * *
0A919 ``Military commodities'' located and produced outside the 
United States as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
    a. ``Military commodities'' produced and located outside the 
United States that are not subject to the International Traffic in 
Arms Regulations (22 CFR parts 120-130) and having any of the 
following characteristics:
    a.1. Incorporate one or more commodities classified under ECCNs 
6A002, 6A003, 6A990, or 6A993.a (having a maximum frame rate equal 
to or less than 9 Hz and thus meeting the criterion of Note 3.a to 
6A003.b.4);
    a.2. Incorporate more than a de minimis amount of U.S.-origin 
``600 series'' controlled content (see Sec.  734.4 of the EAR); or
    a.3. Are direct products of U.S.-origin ``600 series'' 
technology or software (see Sec.  736.2(b)(3) of the EAR).
    b. [Reserved]

0
20. In Supplement No. 1 to part 774, Category 0, ECCN 0A987 is amended 
by:
0
a. Revising the Related Controls paragraph in the List of Items 
Controlled section;
0
b. Revising paragraph f. in the Items paragraph in the List of Items 
Controlled section; and
0
c. Adding a note to 0A987.f, to read as follows:

0A987 Optical sighting devices for firearms (including shotguns 
controlled by 0A984); and ``components'' as follows (See List of 
Items Controlled).
* * * * *

List of Items Controlled

Related Controls: (1) Sighting devices operating outside the visible 
spectrum, as enumerated in USML Category XII, or laser aiming or 
laser illumination equipment not specified in 0A987.f are subject to 
the ITAR. (2) Section 744.9 imposes a license requirement on certain 
commodities described in 0A987 if being exported, reexported, or 
transferred (in-country) for use by a military end-user or for 
incorporation into an item controlled by ECCN 0A919.
* * * * *
Items:
* * * * *
    f. Laser aiming devices or laser illuminators specially designed 
for use on firearms, and having an operational wavelength exceeding 
400 nm but not exceeding 710 nm.

    Note:  0A987.f does not control laser boresighting devices that 
must be placed in the bore or chamber to provide a reference for 
aligning the firearms sights.

* * * * *
0
21. In Supplement No. 1 to part 774, Category 0, add ECCN 0E987 between 
ECCN 0E984 and EAR99, to read as follows:

0E987 ``Technology'' ``required'' for the ``development,'' or 
``production'' of commodities controlled by 0A987 that incorporate a 
focal plane array or image intensifier tube.

License Requirements

Reason for Control: RS, AT.

[[Page 8433]]



 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)
CIV: N/A
TSR: N/A

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:

    The list of items controlled is contained in the ECCN heading.

0
22. In Supplement No. 1 to part 774, Category 2, ECCN 2A984 is amended 
by adding Note 4 to the end of the Related Controls paragraph in the 
List of Items Controlled section, to read as follows:

2A984 Concealed object detection equipment operating in the 
frequency range from 30 GHz to 3000 GHz and having a spatial 
resolution of 0.5 milliradian up to and including 1 milliradian at a 
standoff distance of 100 meters; and ``parts'' and ``components,'' 
n.e.s.

* * * * *

List of Items Controlled

Related Controls: * * * (4) See USML Category XII(c) for terahertz 
imaging systems ``subject to the ITAR.''
* * * * *
0
23. In Supplement No. 1 to part 774, Category 6, ECCN 6A002 is amended 
by:
0
a. Removing the ``Special Conditions for STA'' section; and
0
b. Revising the Related Controls paragraph in the List of Items 
Controlled section.

6A002 Optical sensors and equipment and ``components'' therefor, as 
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) For focal plane arrays, image intensifier 
tubes, and related parts and components subject to the ITAR, see 
USML Category XII(e). (2) See also ECCNs 6A102, 6A202, and 6A992. 
(3) See ECCN 0A919 for foreign-made military commodities that 
incorporate commodities described in 6A002. (4) Section 744.9 
imposes a license requirement on commodities described in ECCN 6A002 
if being exported, reexported, or transferred (in-country) for use 
by a military end-user or for incorporation into an item controlled 
by ECCN 0A919.
* * * * *
0
24. In Supplement No. 1 to part 774, Category 6, ECCN 6A003 is amended 
by:
0
a. Revising the Control(s) table in the License Requirements section;
0
b. Revising notes 4 and 5 in the Related Controls paragraph in the List 
of Items Controlled section; and
0
c. Adding note 6 to the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

6A003 Cameras, systems or equipment, and ``components'' therefor, as 
follows (see List of Items Controlled).

License Requirements

* * * * *

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
NS applies to entire entry................  NS Column 2
NP applies to cameras controlled by         NP Column 1
 6A003.a.2, a.3 or a.4 and to plug-ins in
 6A003.a.6 for cameras controlled by
 6A003.a.3 or a.4.
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to items controlled in           See Sec.   746.1(b) for UN
 6A003.b.3 and b.4.                          controls
 

* * * * *

List of Items Controlled

* * * * *
    Related Controls: * * * (4) See ECCN 0A919 for foreign made 
military commodities that incorporate cameras described in 6A003. 
(5) Section 744.9 imposes a license requirement on cameras described 
in 6A003 if being exported, reexported, or transferred (in-country) 
for use by a military end-user or for incorporation into a commodity 
controlled by ECCN 0A919. (6) See USML Category XII(c) for cameras 
subject to the ITAR.
* * * * *
0
25. In Supplement No. 1 to part 774, Category 6, ECCN 6A004 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

6A004 Optical equipment and ``components,'' as follows (see List of 
Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) For optical mirrors or `aspheric optical 
elements' ``specially designed'' for lithography ``equipment,'' see 
ECCN 3B001. (2) See USML Category XII(e) for gimbals ``subject to 
the ITAR.'' (3) See also 6A994.
* * * * *
0
26. In Supplement No. 1 to part 774, Category 6, ECCN 6A005 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section.

6A005 ``Lasers,'' ``components'' and optical equipment, as follows 
(see List of Items Controlled), excluding items that are subject to 
the export licensing authority of the Nuclear Regulatory Commission 
(see 10 CFR part 110).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) See ECCN 6D001 for ``software'' for items 
controlled under this entry. (2) See ECCNs 6E001 (``development''), 
6E002 (``production''), and 6E201 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 6A205 and 6A995. (4) 
See ECCN 3B001 for excimer ``lasers'' ``specially designed'' for 
lithography equipment. (5) ``Lasers'' ``specially designed'' or 
prepared for use in isotope separation are subject to the export 
licensing authority of the Nuclear Regulatory Commission (see 10 CFR 
part 110). (6) See USML Category XII(b) and (e) for laser systems or 
lasers subject to the ITAR. (7) See USML Category XVIII for certain 
laser-based directed energy weapon systems, equipment, and 
components subject to the ITAR.
* * * * *
0
27. In Supplement No. 1 to part 774, Category 6, ECCN 6A007 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

6A007 Gravity meters (gravimeters) and gravity gradiometers, as 
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

    Related Controls: (1) See USML Category XII(d) for certain 
gravity meters (gravimeters) and gravity gradiometers subject to the 
ITAR. (2) See also ECCNs 6A107, 6A997, and 7A611.
* * * * *
0
28. In Supplement No. 1 to part 774, Category 6, ECCN 6A008 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

6A008 Radar systems, equipment and assemblies, having any of the 
following (see List of Items Controlled), and ``specially designed'' 
``components'' therefor.
* * * * *

List of Items Controlled

* * * * *
Related Controls: This entry does not control: Secondary 
surveillance radar (SSR); Car radar designed for collision 
prevention; Displays or monitors used for Air Traffic Control (ATC) 
having no more than 12 resolvable elements per mm; Meteorological 
(weather) radar. See also ECCNs 6A108 and 6A998. ECCN 6A998 
controls, inter alia, the Light Detection and

[[Page 8434]]

Ranging (LIDAR) equipment excluded by the note to paragraph j of 
this ECCN (6A008). See USML Category XII(b) for certain LIDAR, Laser 
Detection and Ranging (LADAR), or range-gated systems subject to the 
ITAR.
* * * * *
0
29. In Supplement No. 1 to part 774, Category 6, ECCN 6A107 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

6A107 Gravity meters (gravimeters) or gravity gradiometers, other 
than those controlled by 6A007, designed or modified for airborne or 
marine use, as follows, (see List of Items Controlled) and 
``specially designed'' ``parts'' and ``components'' therefor.
* * * * *

List of Items Controlled

* * * * *
Related Controls: See USML Category XII(d) for certain gravity 
meters (gravimeters) or gravity gradiometers subject to the ITAR. 
See also ECCN 7A611.
* * * * *
0
30. In Supplement No. 1 to part 774, Category 6, ECCN 6A611 is revised 
to read as follows:

6A611 Acoustic systems and equipment, radar, and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' therefor, ``specially designed'' for a military 
application that are not enumerated in any USML category or other 
ECCN are controlled by ECCN 3A611. Military fire control, laser, 
imaging, and guidance and control equipment that are not enumerated 
in any USML category or ECCN are controlled by ECCN 7A611.

0
31. In Supplement No. 1 to part 774, Category 6, ECCN 6A990 is revised 
to read as follows:

6A990 Read-out integrated circuits, as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)
LVS: $500
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: (1) See USML Category XII(e) for read-out 
integrated circuits ``subject to the ITAR.'' (2) See ECCN 0A919 for 
foreign made military commodities that incorporate commodities 
described in 6A990. (3) Section 744.9 imposes a license requirement 
on commodities described in 6A990 if being exported, reexported, or 
transferred (in-country) for use by a military end-user or for 
incorporation into a commodity controlled by ECCN 0A919.
Related Definitions: N/A
Items:
    a. Read-out integrated circuits ``specially designed'' for 
``focal plane arrays'' controlled by 6A002.a.3;

    Note:  6A990.a does not control read-out integrated circuits 
``specially designed'' for civil automotive applications.

    b. [RESERVED]
* * * * *
0
32. In Supplement No. 1 to part 774, Category 6, ECCN 6A993 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

6A993 Cameras, not controlled by 6A003 or 6A203, as follows (see 
List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) See ECCN 0A919 for foreign made military 
commodities that incorporate cameras described in 6A993.a that meet 
the criteria specified in Note 3.a to 6A003.b.4.b (i.e., having a 
maximum frame rate equal to or less than 9 Hz). (2) Section 744.9 
imposes license requirements on cameras described in 6A993.a as a 
result of meeting the criteria specified in Note 3.a to 6A003.b.4.b 
(i.e., having a maximum frame rate equal to or less than 9 Hz) if 
being exported, reexported, or transferred (in-country) for use by a 
military end-user or for incorporation into a commodity controlled 
by ECCN 0A919.
* * * * *
0
33. In Supplement No. 1 to part 774, Category 6, ECCN 6D002 is amended 
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions 
section; and
0
b. Revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

6D002 ``Software'' ``specially designed'' for the ``use'' of 
equipment controlled by 6A002.b, 6A008 or 6B008.
* * * * *
List Based License Exceptions (See Part 740 for a description of all 
license exceptions)
* * * * *
TSR: Yes, except N/A for the following: (1) Items controlled for MT 
reasons; (2) ``Software'' ``specially designed'' for the ``use'' of 
``space qualified'' ``laser'' radar or Light Detection and Ranging 
(LIDAR) equipment defined in 6A008.j.1; or (3) ``Software'' 
``specially designed'' for the ``use'' of commodities controlled by 
6A002.b.

List of Items Controlled

* * * * *
Related Controls: (1) ``Software'' ``specially designed'' for the 
``use'' of ``space-qualified'' LIDAR ``equipment'' ``specially 
designed'' for surveying or for meteorological observation, released 
from control under the note in 6A008.j, is controlled in 6D991. (2) 
See also 6D102, 6D991, and 6D992.
* * * * *
0
34. In Supplement No. 1 to part 774, Category 6, ECCN 6D003 is amended 
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions 
section; and
0
b. Revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

6D003 Other ``software'' as follows (see List of Items Controlled).
* * * * *
List Based License Exceptions (See Part 740 for a description of all 
license exceptions)
* * * * *
TSR: Yes, except for 6D003.c and exports or reexports to 
destinations outside of those countries listed in Country Group A:5 
(See Supplement No. 1 to part 740 of the EAR) of ``software'' for 
items controlled by 6D003.a.
* * * * *

List of Items Controlled

* * * * *
Related Controls: See also 6D103, 6D991, and 6D993.
* * * * *
0
35. In Supplement No. 1 to part 774, Category 6, ECCN 6D991 is revised 
to read as follows:

6D991 ``Software,'' n.e.s., ``specially designed'' for the 
``development'', ``production'', or ``use'' of commodities 
controlled by 6A002, 6A003, 6A990, 6A991, 6A996, 6A997, or 6A998.

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
RS applies to ``software'' for commodities  RS Column 1
 controlled by 6A002, 6A003, 6A990, or
 6A998.b.
RS applies to ``software'' for commodities  RS Column 2
 controlled by 6A998.c.
AT applies to entire entry, except          AT Column 1
 ``software'' for commodities controlled
 by 6A991.
AT applies to ``software'' for commodities  AT Column 2
 controlled by 6A991.
 

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

[[Page 8435]]

CIV: N/A
TSR: N/A

List of Items Controlled

Related Controls: (1) See ECCN 6D002 for ``software'' ``specially 
designed'' for the ``use'' of commodities controlled under ECCN 
6A002.b. (2) See ECCN 6D003.c for ``software'' ``specially 
designed'' for cameras incorporating ``focal plane arrays'' 
specified by 6A002.a.3.f and ``specially designed'' to remove a 
frame rate restriction and allow the camera to exceed the frame rate 
specified in 6A003.b.4 Note 3.a.
Related Definitions: N/A
Items:

    The list of items controlled is contained in the ECCN heading.

0
36. In Supplement No. 1 to part 774, Category 6, ECCN 6E001 is amended 
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions 
section; and
0
b. Revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

6E001 ``Technology'' according to the General Technology Note for 
the ``development'' of equipment, materials or ``software'' 
controlled by 6A (except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996, 
6A997, 6A998, or 6A999.c), 6B (except 6B995), 6C (except 6C992 or 
6C994), or 6D (except 6D991, 6D992, or 6D993).
* * * * *
List Based License Exceptions (See Part 740 for a description of all 
license exceptions)
* * * * *
TSR: Yes, except for the following: (1) Items controlled for MT 
reasons; (2) ``Technology'' for commodities controlled by 6A002, 
6A003, 6A004.e or 6A008.j.1; (3) ``Technology'' for ``software'' 
``specially designed'' for ``space qualified'' ``laser'' radar or 
Light Detection and Ranging (LIDAR) equipment defined in 6A008.j.1 
and controlled by 6D001 or 6D002; or (4) Exports or reexports to 
destinations outside of those countries listed in Country Group A:5 
(See Supplement No. 1 to part 740 of the EAR) of ``technology'' for 
the ``development'' of the following: 6A001.a.1.b, 6A001.a.1.e, 
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5, 
6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.d, 6A001.a.2.e., 6A004.c, 
6A004.d,, 6A006.a.2, 6A006.c.1, 6A006.d, 6A006.e, 6A008.d, 6A008.h, 
6A008.k, 6B008, 6D003.a; (b) Equipment controlled by 6A001.a.2.c or 
6A001.a.2.f when ``specially designed'' for real time applications; 
or (c) ``Software'' controlled by 6D001 and ``specially designed'' 
for the ``development'' or ``production'' of equipment controlled by 
6B008, or 6D003.a.
* * * * *

List of Items Controlled

Related Controls: (1) Technical data directly related to satellites 
and all other items described in USML Category XV are subject to the 
ITAR under USML Category XV(f). (2) Technical data directly related 
to laser systems, infrared imaging systems, and all other items 
described in USML Category XII are subject to the ITAR under USML 
Category XII(f). (3) See also 6E101, 6E201, and 6E991.
* * * * *

0
37. In Supplement No. 1 to part 774, Category 6, ECCN 6E002 is amended 
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions 
section; and
0
b. Revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

6E002 ``Technology'' according to the General Technology Note for 
the ``production'' of equipment or materials controlled by 6A 
(except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, 6A998 or 
6A999.c), 6B (except 6B995) or 6C (except 6C992 or 6C994).
* * * * *
List Based License Exceptions (See Part 740 for a description of all 
license exceptions)
* * * * *
TSR: Yes, except for the following:

    (1) Items controlled for MT reasons;
    (2) ``Technology'' for commodities controlled by 6A002, 6A003, 
6A004.e, 6A008.j.1; or
    (3) Exports or reexports to destinations outside of those 
countries listed in Country Group A:5 (See Supplement No. 1 to part 
740 of the EAR) of ``technology'' for the ``production'' of the 
following: (a) Items controlled by 6A001.a.1.b, 6A001.a.1.e, 
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5, 
6A001.a.2.a.6, 6A001.a.2.b, 6A004.c, 6A004.d, 6A006.a.2, 6A006.c.1, 
6A006.d, 6A006.e, 6A008.d, 6A008.h, 6A008.k, 6B008; and (b) Items 
controlled by 6A001.a.2.c and 6A001.a.2.f when ``specially 
designed'' for real time applications.
* * * * *

List of Items Controlled

Related Controls: (1) Technical data directly related to satellites 
and all other items described in USML Category XV are subject to the 
ITAR under USML Category XV(f). (2) Technical data directly related 
to laser systems, infrared imaging systems, and all other items 
described in USML Category XII are subject to the ITAR under USML 
Category XII(f). (3) See also 6E992.
* * * * *
0
38. In Supplement No. 1 to part 774, Category 6, ECCN 6E990 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

6E990 ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by ECCN 6A990.
* * * * *

List of Items Controlled

Related Controls: Technical data directly related to read-out 
integrated circuits described in USML Category XII(e) are subject to 
the ITAR under USML Category XII(f).
* * * * *

0
39. In Supplement No. 1 to part 774, Category 7, ECCN 7A001 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

7A001 Accelerometers as follows (see List of Items Controlled) and 
``specially designed'' ``components'' therefor.
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) See USML Category XII(e) for accelerometers 
subject to the ITAR. (2) See also ECCNs 7A101, 7A611, and 7A994. For 
angular or rotational accelerometers, see ECCN7A001.b. MT controls 
do not apply to accelerometers that are ``specially designed'' and 
developed as Measurement While Drilling (MWD) sensors for use in 
downhole well service applications.
* * * * *
0
40. In Supplement No. 1 to part 774, Category 7, ECCN 7A002 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

7A002 Gyros or angular rate sensors, having any of the following 
(see List of Items Controlled) and ``specially designed'' 
``components'' therefor.
* * * * *

List of Items Controlled

Related Controls: (1) See USML Category XII(e) for gyros or angular 
rate sensors subject to the ITAR. (2) See also ECCNs 7A102, 7A611, 
and 7A994. For angular or rotational accelerometers, see ECCN 
7A001.b.
* * * * *
0
41. In Supplement No. 1 to part 774, Category 7, ECCN 7A003 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

7A003 `Inertial measurement equipment or systems,' having any of the 
following (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: See also ECCNs 7A103, 7A611, and 7A994. See USML 
Category XII(d) for guidance or navigation systems subject to the 
ITAR.
* * * * *
0
42. In Supplement No. 1 to part 774, Category 7, amend ECCN 7A005 by 
revising the Related Controls paragraph in the List of Items Controlled 
section, to read as follows:


[[Page 8436]]


7A005 Global Navigation Satellite Systems (GNSS) receiving equipment 
having any of the following (see List of Items Controlled) and 
``specially designed'' ``components'' therefor.
* * * * *

List of Items Controlled

Related Controls: (1) See also ECCNs 7A105 and 7A994. Typically 
commercially available GNSS receivers do not employ decryption or 
adaptive antennas and are classified as 7A994. (2) See USML Category 
XII(d) for GNSS receiving equipment subject to the ITAR.
* * * * *
0
43. In Supplement No. 1 to part 774, Category 7, ECCN 7A101 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

7A101 Accelerometers, other than those controlled by 7A001 (see List 
of Items Controlled), and ``specially designed'' ``parts'' and 
``components'' therefor.
* * * * *

List of Items Controlled

Related Controls: (1) See USML Category XII(e) for accelerometers 
subject to the ITAR. (2) See also ECCNs 7A001 and 7A611. (3) This 
entry does not control accelerometers that are ``specially 
designed'' and developed as MWD (Measurement While Drilling) sensors 
for use in downhole well service operations.
* * * * *
0
44. In Supplement No. 1 to part 774, Category 7, ECCN 7A102 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

7A102 Gyros, other than those controlled by 7A002 (see List of Items 
Controlled), and ``specially designed'' ``parts'' and ``components'' 
therefor.
* * * * *

List of Items Controlled

Related Controls: (1) See USML Category XII(e) for gyros or angular 
rate sensors subject to the ITAR. (2) See also ECCNs 7A002, 7A611, 
and 7A994.
* * * * *
0
45. In Supplement No. 1 to part 774, Category 7, ECCN 7A611 is revised 
to read as follows:

7A611 Military fire control, laser, imaging, and guidance and 
control equipment, as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
NS applies to entire entry except 7A611.y.  NS Column 1
RS applies to entire entry except 7A611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7A611.y.  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions

    (See Part 740 for a description of all license exceptions)
LVS: $1500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 7A611.

List of Items Controlled

Related Controls: (1) Military fire control, laser, imaging, and 
guidance and control equipment that are enumerated in USML Category 
XII, and technical data (including software) directly related 
thereto, are subject to the ITAR. (2) Navigation and avionics 
equipment and systems, and ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' ``specially designed'' 
therefor, ``specially designed'' for a military application that are 
not enumerated in any USML category or another ``600 series'' ECCN 
are controlled by ECCN 3A611. (3) See Related Controls in ECCNs 
0A987, 2A984, 6A002, 6A003, 6A004, 6A005, 6A007, 6A008, 7A001, 
7A002, 7A003, 7A005, 7A101, and 7A102. (4) See ECCN 3A611 and USML 
Category XI for controls on countermeasure equipment. (5) See ECCN 
0A919 for foreign-made ``military commodities'' that incorporate 
more than a de minimis amount of U.S. origin ``600 series'' 
controlled content.
Related Definitions: N/A
Items:
    a. Guidance, navigation, or control systems, not elsewhere 
specified on the USML, that are ``specially designed'' for a defense 
article on the USML or for a 600 series item.
    b. Inertial measurement units (IMUs), not elsewhere specified on 
the USML, that are ``specially designed'' for a 600 series item.
    c. Accelerometers, not elsewhere specified on the USML, that are 
``specially designed'' for a defense article on the USML or for a 
600 series item.
    d. Gyros or angular rate sensors, not elsewhere specified on the 
USML, that are ``specially designed'' for a defense article on the 
USML or for a 600 series item.
    e. Gravity meters (gravimeters), not elsewhere specified on the 
USML, that are ``specially designed'' for a defense article on the 
USML or for a 600 series item.
    f. to w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' that are ``specially designed'' for a commodity 
enumerated or otherwise described in ECCN 7A611 (except 7A611.y) or 
a defense article enumerated or otherwise described in Category XII 
and not elsewhere specified on the USML, in 7A611.y, or 3A611.y.
    y. Specific ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN or a defense article in Category XII and not 
elsewhere specified on the USML or in the CCL, as follows, and 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
``specially designed'' therefor:
    y.1 [RESERVED]

0
46. In Supplement No. 1 to part 774, Category 7, ECCN 7A994 is revised 
to read as follows:

7A994 Other navigation direction finding equipment, airborne 
communication equipment, all aircraft inertial navigation systems 
not controlled under 7A003 or 7A103, and other avionic equipment, 
including ``parts'' and ``components,'' n.e.s.

License Requirements

Reason for Control: AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
AT applies to entire entry................  AT Column 1
 

License Requirement Notes:
    (1) Typically commercially available GPS do not employ 
decryption or adaptive antenna and are classified as 7A994.

List Based License Exceptions

    (See Part 740 for a description of all license exceptions)
LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: See 7A005 and 7A105.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
0
47. In Supplement No. 1 to part 774, Category 7, add a new ECCN 7B611 
between ECCNs 7B103 and 7B994, to read as follows:

7B611 Test, inspection, and production commodities ``specially 
designed'' for military fire control, laser, imaging, and guidance 
and control equipment, as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1

[[Page 8437]]

 
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions

    (See Part 740 for a description of all license exceptions)
LVS: $1500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 7B611.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:
    a. Test, inspection, and production end items and equipment 
``specially designed'' for the ``development,'' ``production,'' 
repair, overhaul, or refurbishing of commodities controlled in ECCN 
7A611 (except 7A611.y) or commodities in USML Category XII that are 
not enumerated in USML Category XII or ``600 series'' ECCN.
    b. Environmental test facilities ``specially designed'' for the 
certification, qualification, or testing of commodities controlled 
in ECCN 7A611 (except 7A611.y) or guidance and control equipment in 
USML Category XII that are not enumerated in USML Category XII or 
``600 series'' ECCN.
    c. Field test equipment ``specially designed'' to evaluate or 
calibrate the operation of systems described in USML Category 
XII(a), (b), or (c).
    d. to w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' that are ``specially designed'' for a commodity 
listed in this entry and that are not enumerated on the USML or 
controlled by another ``600 series'' ECCN.

0
48. In Supplement No. 1 to part 774, Category 7, add a new ECCN 7D611 
between ECCNs 7D103 and 7D994, to read as follows:

7D611 ``Software'' ``specially designed'' for commodities controlled 
by 7A611 or equipment controlled by 7B611, as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
NS applies to entire entry except 7D611.y.  NS Column 1
RS applies to entire entry except 7D611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7D611.y.  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions

    (See Part 740 for a description of all license exceptions)
CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any software in 7D611.

List of Items Controlled

Related Controls: ``Software'' directly related to articles 
enumerated in USML Category XII is subject of USML paragraph XII(f).
Related Definitions:
Items:
    a. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCNs 7A611 (except 7A611.y) or 7B611.
    b. to x. [RESERVED]
    y. Specific ``software'' ``specially designed'' for the 
``development,'' ``production,'' operation, or maintenance of 
commodities described in 7A611.y.

0
49. In Supplement No. 1 to part 774, Category 7, add a new ECCN 7E611 
between ECCNs 7E104 and 7E994, to read as follows:

7E611 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul or refurbishing of commodities controlled by 7A611, 
commodities controlled by 7B611, or software controlled by 7D611, as 
follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to Part 738)
 
NS applies to entire entry except 7E611.y.  NS Column 1
RS applies to ``development'' or            A license is required to
 ``production'' ``technology'' in 7E611.a.   export and reexport these
                                             items to all countries,
                                             including Canada. A column
                                             specific to this control
                                             does not appear on the
                                             Commerce Country Chart.
                                             (See Sec.   742.6(a)(8)).
RS applies to entire entry except 7E611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7E611.y.  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions

    (See Part 740 for a description of all license exceptions)
CIV: N/A
TSR: N/A

Special Conditions for STA

STA: (1) Paragraph (c)(1) of License Exception STA (Sec.  
740.20(c)(1) of the EAR) may not be used for ``development'' or 
``production'' ``technology'' in 7E611.a. (2) Paragraph (c)(2) of 
License Exception STA (Sec.  740.20(c)(2) of the EAR) may not be 
used for any technology in 7E611.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category XII are subject to the control of USML 
Category XII(f).
Related Definitions: N/A
Items:
    a. ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by ECCNs 7A611.a- .e.
    b. ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities or ``software'' controlled by ECCNs 
7A611 (except 7A611.a-.e or .y), 7B611, or 7D611.
    c. ``Technology'' ``required'' for the operation, installation, 
maintenance, repair, overhaul, or refurbishing of commodities or 
``software'' controlled by ECCNs 7A611 (except 7A611.y), 7B611, or 
7D611 (except 7D611.y).
    d. through x. [RESERVED]
    y. Specific ``technology'' ``required'' for the ``production,'' 
``development,'' operation, installation, maintenance, repair, or 
overhaul of commodities or software controlled by ECCNs 7A611.y or 
7D611.y.

0
50. In Supplement No. 1 to part 774, Category 7, ECCN 7E994 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

7E994 ``Technology,'' n.e.s., for the ``development,'' 
``production'', or ``use'' of navigation, airborne communication, 
and other avionics equipment.
* * * * *

List of Items Controlled

* * * * *
Related Controls: N/A
* * * * *

0
51. In Supplement No. 1 to part 774, Category 8, ECCN 8A002 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

8A002 Marine systems, equipment, ``parts'' and ``components,'' as 
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) See also 8A992 and for underwater 
communications systems, see Category 5, Part I--Telecommunications. 
(2) See also 8A992 for self-contained underwater breathing apparatus 
that is not controlled by 8A002 or released for control by the 
8A002.q Note. (3) For electronic imaging systems ``specially 
designed'' or

[[Page 8438]]

modified for underwater use incorporating image intensifier tubes 
specified by 6A002.a.2.a or 6A002.a.2.b, see 6A003.b.3. (4) For 
electronic imaging systems ``specially designed'' or modified for 
underwater use incorporating ``focal plane arrays'' specified by 
6A002.a.3.g, see 6A003.b.4.c. (5) Section 744.9 imposes a license 
requirement on commodities described in 8A002.d.1.c or .d.2 if being 
exported, reexported, or transferred (in-country) for use by a 
military end-user or for incorporation into an item controlled by 
ECCN 0A919.
* * * * *

0
52. In Supplement No. 1 to part 774, Category 9, ECCN 9A991 is amended 
by:
0
a. Removing the License Requirement Notes paragraph in the License 
Requirements section, and
0
b. Revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

9A991 ``Aircraft'', n.e.s., and gas turbine engines not controlled 
by 9A001 or 9A101 and ``parts'' and ``components,'' n.e.s. (see List 
of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: N/A
* * * * *

    Dated: February 11, 2016.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export Administration.
[FR Doc. 2016-03182 Filed 2-18-16; 8:45 am]
 BILLING CODE 3510-33-P


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