[Federal Register Volume 79, Number 217 (Monday, November 10, 2014)]
[Rules and Regulations]
[Pages 66608-66615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26631]


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

DEPARTMENT OF STATE

22 CFR Parts 121, 123, 125, and 126

RIN 1400-AD33
[Public Notice: 8942]


Amendment to the International Traffic in Arms Regulations: 
Revision of U.S. Munitions List Category XV; Correction

AGENCY: Department of State.

ACTION: Final rule, correction.

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

SUMMARY: On May 24, 2013, the Department of State published a rule (78 
FR 31444) proposing to amend the International Traffic in Arms 
Regulations (ITAR) by revising Category XV of the U.S Munitions List 
(USML) as part of the President's Export Control Reform (ECR) effort. 
After review of comments to the proposed rule, on May 13, 2014, the 
Department published an interim final rule that allowed a final comment 
period until June 27, 2014. The Department is now making final the 
interim final rule and correcting the interim final rule that appeared 
in the Federal Register of May 13, 2014.

DATES: This rule is effective November 10, 2014.

FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2792; email <a href="/cdn-cgi/l/email-protection#581c1c0c1b0a3d2b2837362b3d0c3d3935182b2c392c3d763f372e"><span class="__cf_email__" data-cfemail="c38787978091a6b0b3acadb0a697a6a2ae83b0b7a2b7a6eda4acb5">[email protected]</span></a>. ATTN: Regulatory 
Change, Category XV Final Rule.

SUPPLEMENTARY INFORMATION: The Department provides the following 
modification and corrections to the rule, ``Amendment to the 
International Traffic in Arms Regulations: Revision of U.S. Munitions 
List Category XV,'' published on May 13, 2014, and effective on 
November 10, 2014 (79 FR 27180).
    The changes in this rule are meant to clarify the regulation by 
revising certain text and providing conforming updates to Supplement 
No. 1 to part 126, taking into account revisions made to the USML 
categories in the rule published on May 13, 2014. Additionally, 
supplement No. 1 to part 126 is amended by adding a note regarding the 
use of the exemptions for transactions that require congressional 
notification (Note 17) due to confusion as to when the exemptions may 
be used in furtherance of properly notified agreements.
    Pursuant to ECR, the Department of Commerce has been publishing 
revisions to the Export Administration Regulations, including various 
revisions to the Commerce Control List (CCL). Revision of the USML and 
CCL are coordinated so there is uninterrupted regulatory coverage for 
items moving from the jurisdiction of the Department of State to that 
of the Department of Commerce. The Department of Commerce's companion 
to this notice (see ``Revisions to the Export Administration 
Regulations: Control of Spacecraft Systems and Related Items That the 
President Determines No Longer Warrant Control Under the United States 
Munitions List,'' 79 FR 27418) is also published in this edition of the 
Federal Register.
    The following modifications and corrections are made to the rule, 
FR Doc. 2014-10806, published on May 13, 2014 (79 FR 27180):

PART 121 [CORRECTED]


Sec.  121.1  [Corrected]

0
1A. On page 27185, in the third column, in amendatory instruction 4, 
add ``paragraph (d)(1) of U.S. Munitions List Category XIII,'' before 
``paragraph (i) of U.S. Munitions List Category IV''.
0
1B. On page 27185, in the third column, in Category IV, paragraph (i), 
``enumerated'' is removed and ``described'' is added in its place and 
on page 27186 in the first column, in Category IV, paragraph (i), ``to 
a foreign person'' is added following ``(including training)'' in two 
places.

0
2. On page 27186, in the first column, before Category XV the following 
is added:
Category XIII--Materials and Miscellaneous Articles
* * * * *
    (d) Materials, as follows:
    *(1) Ablative materials fabricated or semi-fabricated from advanced 
composites (e.g., silica, graphite, carbon, carbon/carbon, and boron 
filaments) specially designed for the articles in USML Category IV or 
XV (MT if usable for nozzles, re-entry vehicles, nose tips, or nozzle 
flaps usable in rockets, space launch vehicles (SLVs), or missiles 
capable of achieving a range greater than or equal to 300 km); or
* * * * *

0
3. On page 27186, in the second column, in Category XV, paragraph 
(a)(10), ``assembly'' is removed and ``surveillance, assembly, 
repair,'' is added in its place.

0
4. On page 27186, in the second column, in Category XV, paragraph 
(a)(11), ``[Reserved]'' is removed and ``Provide for sub-orbital or in-
space human habitation and have integrated propulsion other than that 
required for attitude control;'' is added in its place.

0
5. On page 27186, in the second column, in Category XV, paragraph 
(a)(12) is removed and ``That are not commercial communications 
satellites and that have integrated propulsion other than for attitude 
control or achieving initial orbit;'' is added in its place.

0
6. On page 27187, in the first column, in Category XV, Note to 
paragraph (c) is retitled ``Note to paragraph (c)(3)'', it is moved to 
below paragraph (c)(3), and ``Articles do not become subject to the EAR 
until integrated into the item subject to the EAR. Export, reexport, 
retransfer, or temporary import of, and technical data and defense 
services directly related to, defense articles intended to be 
integrated remain subject to the ITAR.'' is added to the end.

0
7. On page 27187, in the second column, in Category XV:
0
a. In paragraph (e)(11)(ii) ``or'' is removed;
0
b. In paragraph (e)(11)(iii), ``)'' is added before the semi-colon and 
``or'' is added after the semi-colon; and
0
c. Paragraph (e)(11)(iv) is added reading ``(iv) Plasma based 
propulsion systems;''

0
8. On page 27187, in the third column, in Category XV, Note 2 to 
paragraph (e)(18), ``XXXX XX'' is removed and ``May 13'' is added in 
its place.

0
9. On page 27188, in the first column, in Category XV, Note 2 to 
paragraph (e), ``Articles do not become subject to the EAR until 
integrated into the item subject to the EAR. Export, reexport, 
retransfer, or temporary import of, and technical data and defense 
services directly related to defense articles intended to be integrated 
remain subject to the ITAR.'' is added to the end.

0
10. On page 27188, in the second column, in Category XV, paragraph (f), 
``enumerated'' is removed and ``described'' is added in its place.

0
11. On page 27188, in the second column, in Category XV, Note 1 to 
paragraph (f):

[[Page 66609]]

0
a. The word ``certain'' is added before the second instance of 
``technical data'';
0
b. The word ``enumerated'' is removed and ``described'' is added in its 
place; and
0
c. The word ``includes'' is removed and ``only applies to'' is added in 
its place.

PART 123 [CORRECTED]

0
12. On page 27189, in the first column, before Part 124--AGREEMENTS, 
OFF-SHORE PROCUREMENT, AND OTHER DEFENSE SERVICES add the following 
amendments:

PART 123--LICENSES FOR THE EXPORT AND TEMPORARY IMPORT OF DEFENSE 
ARTICLES

0
5. The authority citation for part 123 continues to read as follows:

    Authority:  Secs. 2, 38, and 71, 90, 90 Stat. 744 (22 U.S.C. 
2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 U.S.C. 2776; 
Pub. L. 105-261, 112 Stat. 1920; Sec 1205(a), Pub. L. 107-228; 
Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.


0
6. Section 123.16 is amended by removing and reserving paragraph 
(b)(10).

0
7. Section 123.20 is amended by revising paragraph (a) to read as 
follows:


Sec.  123.20  Nuclear-related controls.

    (a) The provisions of this subchapter do not apply to articles, 
technical data, or services in Category VI, Category XV, Category XVI, 
or Category XX of Sec.  121.1 of this subchapter to the extent that 
exports of such articles, technical data, or services are controlled by 
the Department of Energy or the Nuclear Regulatory Commission pursuant 
to the Atomic Energy Act of 1954, as amended, and the Nuclear Non-
Proliferation Act of 1978, as amended, or is a government transfer 
authorized pursuant to these Acts. For Department of Commerce controls, 
see 15 CFR 742.3 and 744.2, administered pursuant to Section 309(c) of 
the Nuclear Nonproliferation Act of 1978, as amended (42 U.S.C. 
2139a(c)), and 15 CFR 744.5, which are not subject to this subchapter.
* * * * *

PART 125 [CORRECTED]

0
13. On page 27189, in the second column, before the signature, add the 
following amendments:

PART 125--LICENSES FOR THE EXPORT OF TECHNICAL DATA AND CLASSIFIED 
DEFENSE ARTICLES

0
9. The authority citation for part 123 continues to read as follows:

    Authority:  Secs. 2 and 38, 90, 90 Stat. 744 (22 U.S.C. 2752, 
2778); 22 U.S.C. 2651a; E.O. 13637, 78 FR 16129.

0
10. Section 125.4 is amended by removing and reserving paragraph (d).

PART 126 [CORRECTED]

0
14. On page 27189, in the second column, before the signature, add the 
following amendments:

PART 126--GENERAL POLICIES AND PROVISIONS

0
11. The authority citation for part 126 continues to read as follows:

    Authority:  Secs. 2, 38, 40, 42, and 71, Pub. L. 90-629, 90 
Stat. 744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); 22 U.S.C. 
2651a; 22 U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR, 1994 Comp., 
p. 899; Sec. 1225, Pub. L. 108-375; Sec. 7089, Pub. L. 111-117; Pub. 
L. 111-266; Sections 7045 and 7046, Pub. L. 112-74; E.O. 13637, 78 
FR 16129.

0
12. Supplement No. 1 to part 126 is revised to read as follows:

Supplement No. 1*

    *An ``X'' in the chart indicates that the item is excluded from use 
under the exemption referenced in the top of the column. An item 
excluded in any one row is excluded regardless of whether other rows 
may contain a description that would include the item.

----------------------------------------------------------------------------------------------------------------
                                                                               (CA) Sec.   (AS) Sec.   (UK) Sec.
              USML Category                            Exclusion                 126.5       126.16      126.17
----------------------------------------------------------------------------------------------------------------
I-XXI....................................  Classified defense articles and            X           X           X
                                            services. See Note 1.
I-XXI....................................  Defense articles listed in the             X           X           X
                                            Missile Technology Control
                                            Regime (MTCR) Annex.
I-XXI....................................  U.S. origin defense articles and   ..........          X           X
                                            services used for marketing
                                            purposes and not previously
                                            licensed for export in
                                            accordance with this subchapter.
I-XXI....................................  Defense services for or technical          X   ..........  ..........
                                            data related to defense articles
                                            identified in this supplement as
                                            excluded from the Canadian
                                            exemption.
I-XXI....................................  Any transaction involving the              X   ..........  ..........
                                            export of defense articles and
                                            services for which congressional
                                            notification is required in
                                            accordance with Sec.   123.15
                                            and Sec.   124.11 of this
                                            subchapter. See Note 17.
I-XXI....................................  U.S. origin defense articles and   ..........          X           X
                                            services specific to
                                            developmental systems that have
                                            not obtained written Milestone B
                                            approval from the U.S.
                                            Department of Defense milestone
                                            approval authority, unless such
                                            export is pursuant to a written
                                            solicitation or contract issued
                                            or awarded by the U.S.
                                            Department of Defense for an end-
                                            use identified in paragraph
                                            (e)(1), (e)(2), or (e)(4) of
                                            Sec.   126.16 or Sec.   126.17
                                            of this subchapter and is
                                            consistent with other exclusions
                                            of this supplement.
I-XXI....................................  Nuclear weapons strategic                  X   ..........  ..........
                                            delivery systems and all
                                            components, parts, accessories,
                                            and attachments specifically
                                            designed for such systems and
                                            associated equipment.
I-XXI....................................  Defense articles and services      ..........          X           X
                                            specific to the existence or
                                            method of compliance with anti-
                                            tamper measures, where such
                                            measures are readily
                                            identifiable, made at
                                            originating Government direction.
I-XXI....................................  Defense articles and services      ..........          X           X
                                            specific to reduced observables
                                            or counter low observables in
                                            any part of the spectrum. See
                                            Note 2.
I-XXI....................................  Defense articles and services      ..........          X           X
                                            specific to sensor fusion beyond
                                            that required for display or
                                            identification correlation. See
                                            Note 3.
I-XXI....................................  Defense articles and services      ..........          X           X
                                            specific to the automatic target
                                            acquisition or recognition and
                                            cueing of multiple autonomous
                                            unmanned systems.
I-XXI....................................  Nuclear power generating           ..........  ..........          X
                                            equipment or propulsion
                                            equipment (e.g., nuclear
                                            reactors), specifically designed
                                            for military use and components
                                            therefor, specifically designed
                                            for military use. See also Sec.
                                             123.20 of this subchapter.

[[Page 66610]]

 
I-XXI....................................  Libraries (parametric technical    ..........  ..........          X
                                            databases) specially designed
                                            for military use with equipment
                                            controlled on the USML. See Note
                                            13.
I-XXI....................................  Defense services or technical              X   ..........  ..........
                                            data specific to applied
                                            research as defined in Sec.
                                            125.4(c)(3) of this subchapter,
                                            design methodology as defined in
                                            Sec.   125.4(c)(4) of this
                                            subchapter, engineering analysis
                                            as defined in Sec.   125.4(c)(5)
                                            of this subchapter, or
                                            manufacturing know-how as
                                            defined in Sec.   125.4(c)(6) of
                                            this subchapter. See Note 12.
I-XXI....................................  Defense services other than those          X   ..........  ..........
                                            required to prepare a quote or
                                            bid proposal in response to a
                                            written request from a
                                            department or agency of the
                                            United States Federal Government
                                            or from a Canadian Federal,
                                            Provincial, or Territorial
                                            Government; or defense services
                                            other than those required to
                                            produce, design, assemble,
                                            maintain or service a defense
                                            article for use by a registered
                                            U.S. company, or a U.S. Federal
                                            Government Program, or for end-
                                            use in a Canadian Federal,
                                            Provincial, or Territorial
                                            Government Program. See Note 14.
I........................................  Firearms, close assault weapons,           X   ..........  ..........
                                            and combat shotguns.
II(k)....................................  Software source code related to    ..........          X           X
                                            USML Category II(c), II(d), or
                                            II(i). See Note 4.
II(k)....................................  Manufacturing know-how related to          X           X           X
                                            USML Category II(d). See Note 5.
III......................................  Ammunition for firearms, close             X   ..........  ..........
                                            assault weapons, and combat
                                            shotguns listed in USML Category
                                            I.
III......................................  Defense articles and services      ..........  ..........          X
                                            specific to ammunition and fuse
                                            setting devices for guns and
                                            armament controlled in USML
                                            Category II.
III(e)...................................  Manufacturing know-how related to          X           X           X
                                            USML Category III(d)(1) or
                                            III(d)(2) and their specially
                                            designed components. See Note 5.
III(e)...................................  Software source code related to    ..........          X           X
                                            USML Category III(d)(1) or
                                            III(d)(2). See Note 4.
IV.......................................  Defense articles and services              X           X           X
                                            specific to man-portable air
                                            defense systems (MANPADS). See
                                            Note 6.
IV.......................................  Defense articles and services      ..........  ..........          X
                                            specific to rockets, designed or
                                            modified for non-military
                                            applications that do not have a
                                            range of 300 km (i.e., not
                                            controlled on the MTCR Annex).
IV.......................................  Defense articles and services      ..........          X           X
                                            specific to torpedoes.
IV.......................................  Defense articles and services              X           X           X
                                            specific to anti-personnel
                                            landmines. See Note 15.
IV.......................................  Defense articles and services              X           X           X
                                            specific to cluster munitions.
IV(i)....................................  Software source code related to    ..........          X           X
                                            USML Category IV(a), IV(b),
                                            IV(c), or IV(g). See Note 4.
IV(i)....................................  Manufacturing know-how related to          X           X           X
                                            USML Category IV(a), IV(b),
                                            IV(d), or IV(g) and their
                                            specially designed components.
                                            See Note 5.
V........................................  The following energetic materials  ..........  ..........          X
                                            and related substances:.
                                           a. TATB (triaminotrinitrobenzene)
                                            (CAS 3058-38-6);.
                                           b. Explosives controlled in USML
                                            Category V(a)(38);.
                                           c. Iron powder (CAS 7439-89-6)
                                            with particle size of 3
                                            micrometers or less produced by
                                            reduction of iron oxide with
                                            hydrogen;.
                                           d. BOBBA-8 (bis(2-
                                            methylaziridinyl)2-(2-
                                            hydroxypropanoxy) propylamino
                                            phosphine oxide), and other MAPO
                                            derivatives;.
                                           e. N-methyl-p-nitroaniline (CAS
                                            100-15-2); or.
                                           f. Trinitrophenylmethylnitramine
                                            (tetryl) (CAS 479-45-8).
V(a)(13).................................  ANF or ANAzF as described in USML  ..........  ..........          X
                                            Category V(a)(13)(iii) and (iv).
V(a)(23).................................  Difluoraminated derivative of RDX  ..........  ..........          X
                                            as described in USML Category
                                            V(a)(23)(iii).
V(c)(7)..................................  Pyrotechnics and pyrophorics       ..........  ..........          X
                                            specifically formulated for
                                            military purposes to enhance or
                                            control radiated energy in any
                                            part of the IR spectrum.
V(d)(3)..................................  Bis-2, 2-dinitropropylnitrate      ..........  ..........          X
                                            (BDNPN).
V(i).....................................  Developmental explosives,          ..........          X           X
                                            propellants, pyrotechnics,
                                            fuels, oxidizers, binders,
                                            additives, or precursors
                                            therefor, funded by the
                                            Department of Defense via
                                            contract or other funding
                                            authorization in accordance with
                                            notes 1 to 3 for USML Category
                                            V(i). This exclusion does not
                                            apply if such export is pursuant
                                            to a written solicitation or
                                            contract issued or awarded by
                                            the U.S. Department of Defense
                                            for an end-use identified in
                                            paragraph (e)(1), (e)(2), or
                                            (e)(4) of Sec.   126.16 or Sec.
                                             126.17 of this subchapter and
                                            is consistent with other
                                            exclusions of this supplement.
VI.......................................  Defense articles and services      ..........  ..........          X
                                            specific to cryogenic equipment,
                                            and specially designed
                                            components or accessories
                                            therefor, specially designed or
                                            configured to be installed in a
                                            vehicle for military ground,
                                            marine, airborne or space
                                            applications, capable of
                                            operating while in motion and of
                                            producing or maintaining
                                            temperatures below 103 K (-170
                                            [deg]C).

[[Page 66611]]

 
VI.......................................  Defense articles and services      ..........  ..........          X
                                            specific to superconductive
                                            electrical equipment (rotating
                                            machinery and transformers)
                                            specially designed or configured
                                            to be installed in a vehicle for
                                            military ground, marine,
                                            airborne, or space applications
                                            and capable of operating while
                                            in motion. This, however, does
                                            not include direct current
                                            hybrid homopolar generators
                                            which have single-pole normal
                                            metal armatures that rotate in a
                                            magnetic field produced by
                                            superconducting windings,
                                            provided those windings are the
                                            only superconducting component
                                            in the generator.
VI.......................................  Defense articles and services      ..........          X           X
                                            specific to naval technology and
                                            systems relating to acoustic
                                            spectrum control and awareness.
                                            See Note 10.
VI(a)....................................  Nuclear powered vessels..........          X           X           X
VI(e)....................................  Defense articles and services              X           X           X
                                            specific to naval nuclear
                                            propulsion equipment. See Note 7.
VI(g)....................................  Software source code related to    ..........          X           X
                                            USML Category VI(a) or VI(c).
                                            See Note 4.
VII......................................  Defense articles and services      ..........  ..........          X
                                            specific to cryogenic equipment,
                                            and specially designed
                                            components or accessories
                                            therefor, specially designed or
                                            configured to be installed in a
                                            vehicle for military ground,
                                            marine, airborne or space
                                            applications, capable of
                                            operating while in motion and of
                                            producing or maintaining
                                            temperatures below 103 K (-170
                                            [deg]C).
VII......................................  Defense articles and services      ..........  ..........          X
                                            specific to superconductive
                                            electrical equipment (rotating
                                            machinery and transformers)
                                            specially designed or configured
                                            to be installed in a vehicle for
                                            military ground, marine,
                                            airborne, or space applications
                                            and capable of operating while
                                            in motion. This, however, does
                                            not include direct current
                                            hybrid homopolar generators
                                            which have single-pole normal
                                            metal armatures that rotate in a
                                            magnetic field produced by
                                            superconducting windings,
                                            provided those windings are the
                                            only superconducting component
                                            in the generator.
VIII.....................................  Defense articles and services      ..........  ..........          X
                                            specific to cryogenic equipment,
                                            and specially designed
                                            components and accessories
                                            therefor, specially designed or
                                            configured to be installed in a
                                            vehicle for military ground,
                                            marine, airborne or space
                                            applications, capable of
                                            operating while in motion and of
                                            producing or maintaining
                                            temperatures below 103 K (-170
                                            [deg]C).
VIII.....................................  Defense articles and services      ..........  ..........          X
                                            specific to superconductive
                                            electrical equipment (rotating
                                            machinery and transformers)
                                            specially designed or configured
                                            to be installed in a vehicle for
                                            military ground, marine,
                                            airborne, or space applications
                                            and capable of operating while
                                            in motion. This, however, does
                                            not include direct current
                                            hybrid homopolar generators
                                            which have single-pole normal
                                            metal armatures that rotate in a
                                            magnetic field produced by
                                            superconducting windings,
                                            provided those windings are the
                                            only superconducting component
                                            in the generator.
VIII(a)..................................  All USML Category VIII(a) items..          X   ..........  ..........
VIII(f)..................................  Developmental aircraft parts,              X   ..........  ..........
                                            components, accessories, and
                                            attachments identified in USML
                                            Category VIII(f).
VIII(i)..................................  Manufacturing know-how related to          X           X           X
                                            USML Category VIII(a) or
                                            VIII(e), and specially designed
                                            parts or components therefor.
                                            See Note 5.
VIII(i)..................................  Software source code related to    ..........          X           X
                                            USML Category VIII(a) or
                                            VIII(e). See Note 4.
IX.......................................  Training or simulation equipment   ..........          X           X
                                            for Man Portable Air Defense
                                            Systems (MANPADS). See Note 6.
IX(e)....................................  Software source code related to    ..........          X           X
                                            USML Category IX(a) or IX(b).
                                            See Note 4.
IX(e)....................................  Software that is both              ..........  ..........          X
                                            specifically designed or
                                            modified for military use and
                                            specifically designed or
                                            modified for modeling or
                                            simulating military operational
                                            scenarios.
X(e).....................................  Manufacturing know-how related to          X           X           X
                                            USML Category X(a)(1) or
                                            X(a)(2), and specially designed
                                            components therefor. See Note 5.
XI(a)....................................  Defense articles and services      ..........          X           X
                                            specific to countermeasures and
                                            counter-countermeasures. See
                                            Note 9.
XI(a)....................................  High Frequency and Phased Array    ..........          X   ..........
                                            Microwave Radar systems, with
                                            capabilities such as search,
                                            acquisition, tracking, moving
                                            target indication, and imaging
                                            radar systems. See Note 16.
XI.......................................  Defense articles and services      ..........          X           X
                                            specific to naval technology and
                                            systems relating to acoustic
                                            spectrum control and awareness.
                                            See Note 10.
XI(b), XI(c), XI(d)......................  Defense articles and services      ..........          X           X
                                            specific to USML Category XI (b)
                                            (e.g., communications security
                                            (COMSEC) and TEMPEST).
XI(d)....................................  Software source code related to    ..........          X           X
                                            USML Category XI(a). See Note 4.
XI(d)....................................  Manufacturing know-how related to          X           X           X
                                            USML Category XI(a)(3) or
                                            XI(a)(4), and specially designed
                                            components therefor. See Note 5.
XII......................................  Defense articles and services      ..........          X           X
                                            specific to countermeasures and
                                            counter-countermeasures. See
                                            Note 9.

[[Page 66612]]

 
XII......................................  Defense articles and services      ..........  ..........
                                            specific to USML Category XII(c)
                                            articles, except any 1st- and
                                            2nd-generation image
                                            intensification tubes and 1st-
                                            and 2nd-generation image
                                            intensification night sighting
                                            equipment. End-items in USML
                                            Category XII(c) and related
                                            technical data limited to basic
                                            operations, maintenance, and
                                            training information as
                                            authorized under the exemption
                                            in Sec.   125.4(b)(5) of this
                                            subchapter may be exported
                                            directly to a Canadian
                                            Government entity (i.e.,
                                            federal, provincial,
                                            territorial, or municipal)
                                            consistent with Sec.   126.5,
                                            other exclusions, and the
                                            provisions of this subchapter.
XII......................................  Technical data or defense                  X           X           X
                                            services for night vision
                                            equipment beyond basic
                                            operations, maintenance, and
                                            training data. However, the AS
                                            and UK Treaty exemptions apply
                                            when such export is pursuant to
                                            a written solicitation or
                                            contract issued or awarded by
                                            the U.S. Department of Defense
                                            for an end-use identified in
                                            paragraph (e)(1), (e)(2), or
                                            (e)(4) of Sec.   126.16 or Sec.
                                             126.17 of this subchapter and
                                            is consistent with other
                                            exclusions of this supplement.
XII(f)...................................  Manufacturing know-how related to          X           X           X
                                            USML Category XII(d) and
                                            specially designed components
                                            therefor. See Note 5.
XII(f)...................................  Software source code related to    ..........          X           X
                                            USML Category XII(a), XII(b),
                                            XII(c), or XII(d). See Note 4.
XIII(b)..................................  Defense articles and services      ..........          X           X
                                            specific to USML Category
                                            XIII(b) (Military Information
                                            Security Assurance Systems,
                                            cryptographic devices, software,
                                            and components).
XIII(d)..................................  Carbon/carbon billets and          ..........  ..........          X
                                            preforms which are reinforced in
                                            three or more dimensional
                                            planes, specifically designed,
                                            developed, modified, configured
                                            or adapted for defense articles.
XIII(e)..................................  Defense articles and services      ..........  ..........          X
                                            specific to armored plate
                                            manufactured to comply with a
                                            military standard or
                                            specification or suitable for
                                            military use. See Note 11.
XIII(g)..................................  Defense articles and services      ..........  ..........          X
                                            related to concealment and
                                            deception equipment and
                                            materials.
XIII(h)..................................  Energy conversion devices other    ..........  ..........          X
                                            than fuel cells.
XIII(j)..................................  Defense articles and services      ..........          X           X
                                            related to hardware associated
                                            with the measurement or
                                            modification of system
                                            signatures for detection of
                                            defense articles as described in
                                            Note 2.
XIII(l)..................................  Software source code related to    ..........          X           X
                                            USML Category XIII(a). See Note
                                            4.
XIV......................................  Defense articles and services      ..........          X           X
                                            related to toxicological agents,
                                            including chemical agents,
                                            biological agents, and
                                            associated equipment.
XIV(a), XIV(b), XIV(d), XIV(e), XIV(f)...  Chemical agents listed in USML             X   ..........  ..........
                                            Category XIV(a), (d) and (e),
                                            biological agents and
                                            biologically derived substances
                                            in USML Category XIV(b), and
                                            equipment listed in USML
                                            Category XIV(f) for
                                            dissemination of the chemical
                                            agents and biological agents
                                            listed in USML Category XIV(a),
                                            (b), (d), and (e).
XV(a)....................................  Defense articles and services              X           X           X
                                            specific to spacecraft/
                                            satellites. However, the
                                            Canadian exemption may be used
                                            for commercial communications
                                            satellites that have no other
                                            type of payload.
XV(b)....................................  Defense articles and services      ..........          X           X
                                            specific to ground control
                                            stations for spacecraft
                                            telemetry, tracking, and
                                            control. Defense articles and
                                            services are not excluded under
                                            this entry if they do not
                                            control the spacecraft.
                                            Receivers for receiving
                                            satellite transmissions are also
                                            not excluded under this entry.
XV(c)....................................  Defense articles and services      ..........          X           X
                                            specific to GPS/PPS security
                                            modules.
XV(c)....................................  Defense articles controlled in             X   ..........  ..........
                                            USML Category XV(c) except end-
                                            items for end-use by the Federal
                                            Government of Canada exported
                                            directly or indirectly through a
                                            Canadian-registered person.
XV(e)....................................  Anti-jam systems with the ability          X   ..........  ..........
                                            to respond to incoming
                                            interference by adaptively
                                            reducing antenna gain (nulling)
                                            in the direction of the
                                            interference.
XV(e)(1).................................  Antennas having any of the                 X   ..........  ..........
                                            following:
                                           a. Aperture (overall dimension of
                                            the radiating portions of the
                                            antenna) greater than 30 feet;.
                                           b. All sidelobes less than or
                                            equal to -35 dB relative to the
                                            peak of the main beam; or.
                                           c. Designed, modified, or
                                            configured to provide coverage
                                            area on the surface of the earth
                                            less than 200 nautical miles in
                                            diameter, where ``coverage
                                            area'' is defined as that area
                                            on the surface of the earth that
                                            is illuminated by the main beam
                                            width of the antenna (which is
                                            the angular distance between
                                            half power points of the beam).
XV(e)(12)................................  Propulsion systems which permit            X   ..........  ..........
                                            acceleration of the satellite on-
                                            orbit (i.e., after mission orbit
                                            injection) at rates greater than
                                            0.1 g.
XV(e)(10)................................  Attitude determination and                 X   ..........  ..........
                                            control systems designed to
                                            provide spacecraft pointing
                                            determination and control or
                                            payload pointing system control
                                            better than 0.02 degrees per
                                            axis.

[[Page 66613]]

 
XV(e)....................................  All parts, components,                     X   ..........  ..........
                                            accessories, attachments,
                                            equipment, or systems for USML
                                            Category XV(a) items, except
                                            when specially designed for use
                                            in commercial communications
                                            satellites.
XV(e)....................................  Defense articles and services      ..........          X           X
                                            specific to spacecraft, ground
                                            control station systems (only
                                            for spacecraft control as
                                            controlled in USML Category
                                            XV(b)), subsystems, components,
                                            parts, accessories, attachments,
                                            and associated equipment
                                            controlled in Category XV.
XV(f)....................................  Technical data and defense                 X           X           X
                                            services directly related to the
                                            other defense articles excluded
                                            from the exemptions for USML
                                            Category XV.
XVI......................................  Defense articles and services              X           X           X
                                            specific to design and testing
                                            of nuclear weapons.
XVII.....................................  Classified articles, and                   X           X           X
                                            technical data and defense
                                            services relating thereto, not
                                            elsewhere enumerated. See Note 1.
XVIII....................................  Defense articles and services      ..........          X           X
                                            specific to directed energy
                                            weapon systems.
XIX(e), XIX(f)(1), XIX(f)(2), XIX(g).....  Defense articles and services      ..........          X           X
                                            specific to gas turbine engine
                                            hot section components and to
                                            Full Authority Digital Engine
                                            Control Systems (FADEC) or
                                            Digital Electronic Engine
                                            Controls (DEEC). See Note 8.
XIX(g)...................................  Technical data and defense                 X           X           X
                                            services for gas turbine engine
                                            hot sections. (This does not
                                            include hardware). See Note 8.
XX.......................................  Defense articles and services              X           X           X
                                            related to submersible vessels,
                                            oceanographic, and associated
                                            equipment.
XX.......................................  Defense articles and services      ..........          X           X
                                            specific to naval technology and
                                            systems relating to acoustic
                                            spectrum control and awareness.
                                            See Note 10.
XX.......................................  Defense articles specific to       ..........  ..........          X
                                            cryogenic equipment, and
                                            specially designed components or
                                            accessories therefor, specially
                                            designed or configured to be
                                            installed in a vehicle for
                                            military ground, marine,
                                            airborne or space applications,
                                            capable of operating while in
                                            motion and of producing or
                                            maintaining temperatures below
                                            103 K (-170 [deg]C).
XX.......................................  Defense articles specific to       ..........  ..........          X
                                            superconductive electrical
                                            equipment (rotating machinery
                                            and transformers) specially
                                            designed or configured to be
                                            installed in a vehicle for
                                            military ground, marine,
                                            airborne, or space applications
                                            and capable of operating while
                                            in motion. This, however, does
                                            not include direct current
                                            hybrid homopolar generators that
                                            have single-pole normal metal
                                            armatures which rotate in a
                                            magnetic field produced by
                                            superconducting windings,
                                            provided those windings are the
                                            only superconducting component
                                            in the generator.
XX(a)....................................  Nuclear powered vessels..........          X           X           X
XX(b)....................................  Defense articles and services              X           X           X
                                            specific to naval nuclear
                                            propulsion equipment. See Note 7.
XX(c)....................................  Defense articles and services      ..........          X           X
                                            specific to submarine combat
                                            control systems.
XX(d)....................................  Software source code related to    ..........          X           X
                                            USML Category XX(a). See Note 4.
XXI......................................  Articles, and technical data and           X           X           X
                                            defense services relating
                                            thereto, not otherwise
                                            enumerated on the USML, but
                                            placed in this category by the
                                            Director, Office of Defense
                                            Trade Controls Policy.
----------------------------------------------------------------------------------------------------------------
Note 1: Classified defense articles and services are not eligible for export under the Canadian exemptions. U.S.
  origin articles, technical data, and services controlled in USML Category XVII are not eligible for export
  under the UK Treaty exemption. U.S. origin classified defense articles and services are not eligible for
  export under either the UK or AS Treaty exemptions except when being released pursuant to a U.S. Department of
  Defense written request, directive, or contract that provides for the export of the defense article or
  service.
Note 2: The phrase ``any part of the spectrum'' includes radio frequency (RF), infrared (IR), electro-optical,
  visual, ultraviolet (UV), acoustic, and magnetic. Defense articles related to reduced observables or counter
  reduced observables are defined as:
(a) Signature reduction (radio frequency (RF), infrared (IR), Electro-Optical, visual, ultraviolet (UV),
  acoustic, magnetic, RF emissions) of defense platforms, including systems, subsystems, components, materials
  (including dual-purpose materials used for Electromagnetic Interference (EM) reduction), technologies, and
  signature prediction, test and measurement equipment and software, and material transmissivity/reflectivity
  prediction codes and optimization software.
(b) Electronically scanned array radar, high power radars, radar processing algorithms, periscope-mounted radar
  systems (PATRIOT), LADAR, multistatic and IR focal plane array-based sensors, to include systems, subsystems,
  components, materials, and technologies.
Note 3: Defense articles and services related to sensor fusion beyond that required for display or
  identification correlation is defined as techniques designed to automatically combine information from two or
  more sensors/sources for the purpose of target identification, tracking, designation, or passing of data in
  support of surveillance or weapons engagement. Sensor fusion involves sensors such as acoustic, infrared,
  electro optical, frequency, etc. Display or identification correlation refers to the combination of target
  detections from multiple sources for assignment of common target track designation.
Note 4: Software source code beyond that source code required for basic operation, maintenance, and training for
  programs, systems, and/or subsystems is not eligible for use of the UK or AS Treaty exemptions, unless such
  export is pursuant to a written solicitation or contract issued or awarded by the U.S. Department of Defense
  for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of Sec.   126.16 or Sec.   126.17 of this
  subchapter and is consistent with other exclusions of this supplement.
Note 5: Manufacturing know-how, as defined in Sec.   125.4(c)(6) of this subchapter, is not eligible for use of
  the UK or AS Treaty exemptions, unless such export is pursuant to a written solicitation or contract issued or
  awarded by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of
  Sec.   126.16 or Sec.   126.17 of this subchapter and is consistent with other exclusions of this supplement.
Note 6: Defense articles and services specific to Man Portable Air Defense Systems (MANPADS) includes missiles
  that can be used without modification in other applications. It also includes production and test equipment
  and components specifically designed or modified for MANPAD systems, as well as training equipment
  specifically designed or modified for MANPAD systems.

[[Page 66614]]

 
Note 7: Naval nuclear propulsion plants includes all of USML Category VI(e). Naval nuclear propulsion
  information consists of technical data that concern the design, arrangement, development, manufacture,
  testing, operation, administration, training, maintenance, and repair of the propulsion plants of naval
  nuclear-powered ships and prototypes, including the associated shipboard and shore-based nuclear support
  facilities. Examples of defense articles covered by this exclusion include nuclear propulsion plants and
  nuclear submarine technologies or systems; nuclear powered vessels (see USML Categories VI and XX).
Note 8: A complete gas turbine engine with embedded hot section components or digital engine controls is
  eligible for export or transfer under the Treaties. Technical data, other than those data required for routine
  external maintenance and operation, related to the hot section is not eligible for export under the Canadian
  exemption. Technical data, other than those data required for routine external maintenance and operation,
  related to the hot section or digital engine controls, as well as individual hot section parts or components
  are not eligible for the Treaty exemption whether shipped separately or accompanying a complete engine. Gas
  turbine engine hot section exempted defense article components and technology are combustion chambers and
  liners; high pressure turbine blades, vanes, disks and related cooled structure; cooled low pressure turbine
  blades, vanes, disks and related cooled structure; cooled augmenters; and cooled nozzles. Examples of gas
  turbine engine hot section developmental technologies are Integrated High Performance Turbine Engine
  Technology (IHPTET), Versatile, Affordable Advanced Turbine Engine (VAATE), and Ultra-Efficient Engine
  Technology (UEET), which are also excluded from export under the exemptions.
Note 9: Examples of countermeasures and counter-countermeasures related to defense articles not exportable under
  the AS or UK Treaty exemptions are:
(a) IR countermeasures;
(b) Classified techniques and capabilities;
(c) Exports for precision radio frequency location that directly or indirectly supports fire control and is used
  for situation awareness, target identification, target acquisition, and weapons targeting and Radio Direction
  Finding (RDF) capabilities. Precision RF location is defined as angle of arrival accuracy of less than five
  degrees (RMS) and RF emitter location of less than ten percent range error;
(d) Providing the capability to reprogram; and
(e) Acoustics (including underwater), active and passive countermeasures, and counter-countermeasures.
Note 10: Examples of defense articles covered by this exclusion include underwater acoustic vector sensors;
  acoustic reduction; off-board, underwater, active and passive sensing, propeller/propulsor technologies; fixed
  mobile/floating/powered detection systems which include in-buoy signal processing for target detection and
  classification; autonomous underwater vehicles capable of long endurance in ocean environments (manned
  submarines excluded); automated control algorithms embedded in on-board autonomous platforms which enable (a)
  group behaviors for target detection and classification, (b) adaptation to the environment or tactical
  situation for enhancing target detection and classification; ``intelligent autonomy'' algorithms that define
  the status, group (greater than 2) behaviors, and responses to detection stimuli by autonomous, underwater
  vehicles; and low frequency, broad band ``acoustic color,'' active acoustic ``fingerprint'' sensing for the
  purpose of long range, single pass identification of ocean bottom objects, buried or otherwise (controlled
  under Category USML XI(a)(1), (a)(2), (b), (c), and (d)).
Note 11: This exclusion does not apply to the platforms (e.g., vehicles) for which the armored plates are
  applied. For exclusions related to the platforms, refer to the other exclusions in this list, particularly for
  the category in which the platform is controlled.
The excluded defense articles include constructions of metallic or non-metallic materials or combinations
  thereof specially designed to provide protection for military systems. The phrase ``suitable for military
  use'' applies to any articles or materials which have been tested to level IIIA or above IAW NIJ standard
  0108.01 or comparable national standard. This exclusion does not include military helmets, body armor, or
  other protective garments which may be exported IAW the terms of the AS or UK Treaty.
Note 12: Defense services or technical data specific to applied research (Sec.   125.4(c)(3) of this
  subchapter), design methodology (Sec.   125.4(c)(4) of this subchapter), engineering analysis (Sec.
  125.4(c)(5) of this subchapter), or manufacturing know-how (Sec.   125.4(c)(6) of this subchapter) are not
  eligible for export under the Canadian exemptions. However, this exclusion does not include defense services
  or technical data specific to build-to-print as defined in Sec.   125.4(c)(1) of this subchapter, build/design-
  to-specification as defined in Sec.   125.4(c)(2) of this subchapter, or basic research as defined in Sec.
  125.4(c)(3) of this subchapter, or maintenance (i.e., inspection, testing, calibration or repair, including
  overhaul, reconditioning and one-to-one replacement of any defective items parts or components, but excluding
  any modification, enhancement, upgrade or other form of alteration or improvement that changes the basic
  performance of the item) of non-excluded defense articles which may be exported subject to other exclusions or
  terms of the Canadian exemptions.
Note 13: The term ``libraries'' (parametric technical databases) means a collection of technical information of
  a military nature, reference to which may enhance the performance of military equipment or systems.
Note 14: In order to utilize the authorized defense services under the Canadian exemption, the following must be
  complied with:
(a) The Canadian contractor and subcontractor must certify, in writing, to the U.S. exporter that the technical
  data and defense services being exported will be used only for an activity identified in Supplement No. 1 to
  part 126 of this subchapter and in accordance with Sec.   126.5 of this subchapter; and
(b) A written arrangement between the U.S. exporter and the Canadian recipient must:
(1) Limit delivery of the defense articles being produced directly to an identified manufacturer in the United
  States registered in accordance with part 122 of this subchapter; a department or agency of the United States
  Federal Government; a Canadian-registered person authorized in writing to manufacture defense articles by and
  for the Government of Canada; a Canadian Federal, Provincial, or Territorial Government;
(2) Prohibit the disclosure of the technical data to any other contractor or subcontractor who is not a Canadian-
  registered person;
(3) Provide that any subcontract contain all the limitations of Sec.   126.5 of this subchapter;
(4) Require that the Canadian contractor, including subcontractors, destroy or return to the U.S. exporter in
  the United States all of the technical data exported pursuant to the contract or purchase order upon
  fulfillment of the contract, unless for use by a Canadian or United States Government entity that requires in
  writing the technical data be maintained. The U.S. exporter must be provided written certification that the
  technical data is being retained or destroyed; and
(5) Include a clause requiring that all documentation created from U.S. origin technical data contain the
  statement that, ``This document contains technical data, the use of which is restricted by the U.S. Arms
  Export Control Act. This data has been provided in accordance with, and is subject to, the limitations
  specified in Sec.   126.5 of the International Traffic in Arms Regulations (ITAR). By accepting this data, the
  consignee agrees to honor the requirements of the ITAR.''
(c) The U.S. exporter must provide the Directorate of Defense Trade Controls a semi-annual report regarding all
  of their on-going activities authorized under Sec.   126.5 of this subchapter. The report shall include the
  article(s) being produced; the end-user(s); the end-item into which the product is to be incorporated; the
  intended end-use of the product; and the names and addresses of all the Canadian contractors and
  subcontractors.
Note 15: This exclusion does not apply to demining equipment in support of the clearance of landmines and
  unexploded ordnance for humanitarian purposes. As used in this exclusion, ``anti-personnel landmine'' means
  any mine placed under, on, or near the ground or other surface area, or delivered by artillery, rocket,
  mortar, or similar means or dropped from an aircraft and which is designed to be detonated or exploded by the
  presence, proximity, or contact of a person; any device or material which is designed, constructed, or adapted
  to kill or injure and which functions unexpectedly when a person disturbs or approaches an apparently harmless
  object or performs an apparently safe act; any manually-emplaced munition or device designed to kill, injure,
  or damage and which is actuated by remote control or automatically after a lapse of time.
Note 16: The radar systems described are controlled in USML Category XI(a)(3)(i) through (v). As used in this
  entry, the term ``systems'' includes equipment, devices, software, assemblies, modules, components, practices,
  processes, methods, approaches, schema, frameworks, and models.
Note 17: This exclusion does not apply to the export of defense articles previously notified to Congress
  pursuant to Sec.   123.15 or Sec.   124.11 of this subchapter. For use of the Australian and UK exemptions for
  congressional notification, see Sec.   126.16(o) and Sec.   126.17(o).



[[Page 66615]]

 Rose E. Gottemoeller,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2014-26631 Filed 11-7-14; 8:45 am]
BILLING CODE 4710-25-P


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