Document ID: BIS-2017-0002-0001
Agency: bis
Document Type: Rule
Title: Export Administration Regulations: Control of Spacecraft Systems and Related Items the President Determines No Longer Warrant Control under the United States Munitions List
Posted Date: 2017-01-10T05:00Z

[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Rules and Regulations]
[Pages 2875-2883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31755]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, 750, and 774

[Docket No. 150325297-6180-02]
RIN 0694-AG59

Revisions to the Export Administration Regulations (EAR): Control 
of Spacecraft Systems and Related Items the President Determines No 
Longer Warrant Control Under the United States Munitions List (USML)

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

ACTION: Final rule.

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SUMMARY: This final rule addresses issues raised in, and public 
comments on, the interim final rule that was published on May 13, 2014, 
as well as additional clarifications and corrections. The May 13 rule 
added controls to the Export Administration Regulations (EAR) for 
spacecraft and related items that the President has determined no 
longer warrant control under United States Munitions List (USML) 
Category XV--spacecraft and related items.
    This is the third final rule BIS has published related to the May 
13 rule and completes the regulatory action for the interim final rule. 
These changes were also informed by comments received in response to 
the May 13 rule that included a request for comments, as well as 
interagency discussions on how best to address the comments. The 
changes made in this final rule are grouped into four types of changes: 
Changes to address the movement of additional spacecraft and related 
items from the USML to the Commerce Control List (CCL), as a result of 
changes in aperture size for spacecraft that warrant ITAR control, in 
response to public comments and further U.S. Government review; changes 
to address the movement of the James Webb Space Telescope (JWST) from 
the USML to the CCL; other corrections and clarifications to the 
spacecraft interim final rule; and addition of .y items to Export 
Control Classification Number 9A515.
    This final rule is being published in conjunction with the 
publication of a Department of State, Directorate of Defense Trade 
Controls (DDTC) final rule, which makes changes, including corrections 
and clarifications, to the provisions adopted in the State Department's 
own May 13, 2014 rule. The State May 13 rule revised USML Category XV 
(22 CFR 121.1) to control those articles the President has determined 
warrant control on the USML. Both May 13 rules and the subsequent 
related rules are part of the President's Export Control Reform 
Initiative. This rule is also part of Commerce's retrospective 
regulatory review plan under Executive Order (EO) 13563 (see the 
SUPPLEMENTARY INFORMATION section of this rule for information on the 
availability of the plan).

DATES: This rule is effective on January 15, 2017.

FOR FURTHER INFORMATION CONTACT: For questions about the ECCNs included 
in this rule, contact Dennis Krepp, Office of National Security and 
Technology Transfer Controls, Bureau of Industry and Security, U.S. 
Department of Commerce, Telephone: 202-482-1309, email: 
Dennis.Krepp@bis.doc.gov. For general questions about the regulatory 
changes pertaining to satellites, spacecraft, and related items, 
contact the Regulatory Policy Division, Office of Exporter Services, 
Bureau of Industry and Security, at 202-482-2440 or email: 
rpd2@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    This final rule addresses issues raised in, and public comments on, 
the interim final rule, Revisions to the Export Administration 
Regulations (EAR): Control of Spacecraft Systems and Related Items the 
President Determines No Longer Warrant Control Under the United States 
Munitions List (USML), that was published on May 13, 2014 (79 FR 27417) 
(May 13 rule), and makes corrections and clarifications. The May 13 
rule added controls to the Export Administration Regulations (EAR) for 
spacecraft and related items that the President has determined no 
longer warrant control under United States Munitions List (USML) 
Category XV--spacecraft and related items. The vast majority of the 
changes included in the May 13 rule have been implemented as published 
in the interim final rule and are not republished in this final rule. A 
full description of those changes can be found in the Background 
section and the regulatory text of the May 13 rule. BIS also published 
corrections and clarifications to the May 13 rule in a final rule 
published on November 12, 2014 (79 FR 67055) and in a final rule 
published on July 13, 2015 (80 FR 39950).
    This final rule is being published in conjunction with the 
publication of a Department of State, Directorate of Defense Trade 
Controls (DDTC) final rule, which makes changes, including corrections 
and clarifications, to the provisions adopted in the May 13 State

[[Page 2876]]

rule (79 FR 27180). The State May 13 rule revised USML Category XV (22 
CFR 121.1) to control those articles the President has determined 
warrant control on the USML. Both May 13 rules and the subsequent 
related rules are part of the President's Export Control Reform 
Initiative.
    The changes included in this Commerce final rule complete the 
regulatory action begun by the May 13 rule and are also informed by 
comments received in response to that rule. The changes made in this 
Commerce final rule are grouped into four types of changes: (1) Changes 
to address the movement of additional spacecraft and related items from 
the USML to the CCL, as a result of changes in aperture size for 
spacecraft that warrant ITAR control, in response to public comments 
and further U.S. Government review; (2) changes to address the movement 
of the James Webb Space Telescope (JWST) from the USML to the CCL; (3) 
other corrections and clarifications to the spacecraft interim final 
rule; and (4) addition of .y items to Export Control Classification 
Number (ECCN) 9A515. Note that certain ECCNs may be referenced in more 
than one of the (1) through (4) sections, but for ease of reference the 
description of those changes to those ECCNs, such as ECCN 9E515, are 
grouped with the related changes under sections (1) through (4), as 
applicable.

(1) Changes To Address the Movement of Additional Spacecraft and 
Related Items From the USML to the CCL, as a Result of Changes in 
Aperture Size for Spacecraft That Warrant ITAR Control, in Response to 
Public Comments and Further U.S. Government Review

    This final rule makes several changes to the EAR to address the 
movement of additional spacecraft and related items from the USML to 
the CCL, as a result of the Department of State's responding to 
comments on its interim final rule, which specifically asked for 
additional public comments on this issue. The Department of State in 
its May 13 interim final rule noted:

    Commenting parties recommended the aperture threshold for civil 
and commercial remote sensing satellites in paragraph (a)(7)(i) be 
increased from 0.35 meters to a threshold more appropriate for 
current world capabilities and market conditions. The Department [of 
State] did not accept this recommendation at this time. However, it, 
along with other agencies, understands that the technology and civil 
and commercial applications in this area are evolving. Thus, the 
Department has committed to reviewing during the six months after 
the publication of this rule whether further amendments to the USML 
controls on civil and commercial remote sensing satellites are 
warranted, and seeks additional public comment on this matter.

    For a discussion of the changes made to the ITAR in response to the 
related public comments, see the corresponding Department of State rule 
published today.
    The changes described below are the EAR changes needed to address 
the movement of these additional spacecraft (under ECCNs 9A515.a.1 to 
.a.4 and 9A004.u) and related items (under 9A515.g) from the USML to 
the CCL. Adopting a more permissive aperture size (meaning more 
spacecraft items would no longer warrant ITAR control) was strongly 
advocated by commenters in response to the Commerce interim final rule. 
The public believed additional changes were needed to appropriately 
control spacecraft and related items that warranted ITAR control, with 
respect to aperture size, while moving those that did not warrant ITAR 
control to the CCL, consistent with the stated objectives in the May 13 
final rules. State and the other agencies reviewing the comments agreed 
that some additional spacecraft and related items did not warrant ITAR 
control. This Commerce rule makes conforming changes to the EAR to 
ensure that appropriate controls are in place for such additional 
spacecraft and related items that did not warrant ITAR control, based 
on the review of the public comments and additional U.S. Government 
review. BIS anticipates an increase of approximately 10 to 20 license 
applications per year as a result of these changes to the EAR.
    Because of the more sensitive nature of these additional spacecraft 
and related items that are being moved to the CCL, additional changes 
are needed to the EAR to effectively control these items. In certain 
cases, this means imposing more restrictive requirements compared to 
other 9x515 items. These additional requirements are described below, 
including a description of the parameters for the items moved to the 
CCL.
    In Sec.  740.20, paragraph (g) (License Exception STA eligibility 
requests for 9x515 and ``600 series'' end items), this final rule 
revises paragraph (g)(1) as a conforming change to the changes made to 
ECCN 9A515.a, described below. To maintain the same scope of paragraph 
(g)(1), this final rule removes the text that referred to ECCN 9A515.a 
and adds in its place text referencing ``spacecraft'' in 9A515.a.1, 
.a.2, .a.3, or .a.4, or items in 9A515.g. The spacecraft in ECCN 
9A515.a.5 are eligible for License Exception STA without a Sec.  
740.20(g) request. As a conforming change, this final rule adds ECCN 
9E515.b, .d, .e, or .f as eligible for Sec.  740.20(g) License 
Exception STA eligibility requests. Because the scope of revised 
paragraph (g) includes items other than end items, this final rule also 
revises the heading of paragraph (g) to remove the term ``end items'' 
and add in its place the term ``items.'' However, the items eligible to 
be submitted under the Sec.  740.20(g) process are still limited to 
those specific ECCNs and ``items'' paragraphs identified in paragraph 
(g).
    The spacecraft transferred to the CCL in this final rule are 
subject to special regional stability license requirements. Therefore, 
in Sec.  742.6 (Regional stability), this final rule makes revisions to 
five paragraphs. The final rule revises paragraph (a)(1), adds a new 
paragraph (a)(8), revises paragraph (b)(1)(i), and adds paragraphs 
(b)(5) and (b)(6). These changes are described below.
    In Sec.  742.6, paragraph (a)(1) (RS Column 1 license requirements 
in general), this final rule adds a reference to new paragraph (a)(8). 
New paragraph (a)(8) (Special RS Column 1 license requirement 
applicable to certain spacecraft and related items) is an RS Column 1 
license requirement, which is specific to certain spacecraft and 
related items. This paragraph specifies that a license is required for 
all destinations, including Canada, for spacecraft and related items 
classified under ECCN 9A515.a.1, .a.2., .a.3., .a.4., .g, and ECCN 
9E515.f. Although the license requirement for these specified ECCN 
9x515 items is more restrictive than for those 9x515 items on the CCL 
prior to publication of this rule, the license review policy is the 
same as those for other 9x515 items. As a conforming change, this final 
rule revises the fourth sentence of paragraph (b)(1)(i) to add a 
reference to paragraph (a)(8), because that sentence references the 
ECCN 9x515 license requirements, which now include those special RS 
license requirements in paragraph (a)(8).
    This final rule adds two new paragraphs, paragraph (b)(5) 
(Spacecraft for launch) and paragraph (b)(6) (Remote sensing 
spacecraft) to specify the requirements that apply for license 
applications involving spacecraft and remote sensing spacecraft. 
Consistent with the requirements in paragraph (y) in Supplement No. 2 
to part 748 Unique Application and Submission Requirements, this final 
rule adds paragraphs (b)(5)(i) and (b)(5)(ii) to specify when 
applications to export or reexport a ``spacecraft'' controlled under 
ECCN 9A515.a for launch in or by a country will or may require a 
technology transfer control plan (TCP) approved by the Department of 
Defense

[[Page 2877]]

(DoD), an encryption technology control plan approved by the National 
Security Agency (NSA), and DoD monitoring of all launch activities. 
Paragraph (b)(5)(i) specifies that this is a requirement for all such 
applications for countries that are not a member of the North Atlantic 
Treaty Organization (NATO) or a major non-NATO ally of the United 
States. This final rule adds a similar requirement under paragraph 
(b)(5)(ii), but with the key distinction that it may be required for 
countries that are a member of NATO or a major non-NATO ally of the 
United States.
    Also in Sec.  742.6, this final rule adds a new paragraph (b)(6) 
(Remote sensing spacecraft) to make applicants aware that any 
application for ``spacecraft'' described in ECCN 9A515.a.1,.a.2, a.3, 
or .a.4, for sensitive remote sensing components described in 9A515.g, 
or for ``technology'' described in ECCN 9E515.f, may require a 
government-to-government agreement at the discretion of the U.S. 
Government. A government-to-government agreement may be required for 
any destination at the sole discretion of the U.S. Government.
    In Sec.  750.4 (Procedures for processing license applications), as 
conforming changes to the changes described above to Sec.  742.6, this 
final rule makes the following two changes: adds a new paragraph 
(b)(8), and adds a new paragraph (d)(2)(iv). These changes are 
described in the next two paragraphs.
    In Sec.  750.4, consistent with the requirements in paragraph (y) 
in Supplement No. 2 to part 748 Unique Application and Submission 
Requirements, this final rule adds a new paragraph (b)(8) (Satellites 
for launch) to include a requirement for license applications involving 
a satellite for launch. Applicants must obtain approval by the DoD of a 
technology transfer control plan and the approval of the NSA of an 
encryption technology control plan. In addition, the applicant will 
also be required to make arrangements with the DoD for monitoring of 
all launch activities. These existing DoD and NSA requirements in 
regards to satellites for launch are in addition to the EAR licensing 
requirements, but any license authorized under the EAR for satellites 
for launch must also be done in accordance with those DoD and NSA 
requirements to be authorized under an EAR license. Therefore, this 
final rule adds this requirement to Sec.  750.4(b)(8), which will 
eliminate the need to add this requirement as a license condition for 
any license for satellites for launch. These DoD and NSA TCP approval 
requirements existed under the ITAR and are added to the EAR to 
preserve the status quo. Therefore, although this paragraph adds three 
new requirements to the EAR for license applications for spacecraft for 
launch, the requirements are the same as when these spacecraft were 
formerly under the ITAR, so there will be no increased burden on 
exporters, reexporters or transferors.
    In Sec.  750.4, this final rule adds a new paragraph (d)(2)(iv) 
(Remote Sensing Interagency Working Group (RSIWG)) to make applicants 
aware that the RSIWG, chaired by the State Department, will review 
license applications involving remote sensing spacecraft. These will be 
any items described in ECCN 9A515.a.1, .a.2, .a.3, or .a.4, sensitive 
remote sensing components described in 9A515.g, or ``technology'' 
described in 9E515.f.
    ECCN 9A515. This final rule adds a new License Requirement Note, 
revises the Special Conditions for STA section, revises ``items'' 
paragraph (a), and adds paragraph (g) in the List of ``items'' 
controlled section of ECCN 9E515. These changes are described in the 
next five paragraphs.
    Addition of License Requirement Note to 9A515. As a conforming 
change to the addition of Sec.  742.6(a)(8), described above, this 
final rule adds a License Requirement Note to the end of the License 
Requirements section of ECCN 9A515 to specify that the Commerce Country 
Chart is not used for determining license requirements for commodities 
classified as 9A515.a.1, .a.2., .a.3., .a.4, and .g. The new License 
Requirement also includes a cross reference to Sec.  742.6(a)(8) and 
alerts exporters and reexporters that these commodities are subject to 
a worldwide license requirement.
    In ECCN 9A515, Special Conditions for STA section, this final rule 
revises paragraph (1). This final rule adds references to the new 
``items'' paragraphs of ECCN 9A515.a (9A515.a.1, .a.2, .a.3 and .a.4) 
and 9A515.g, which would not be eligible for License Exception STA, 
unless determined by BIS to be eligible for License Exception STA in 
accordance with Sec.  740.20(g) (License Exception STA eligibility 
requests for certain 9x515 and ``600 series'' end items). Because these 
items are commodities that are more sensitive, additional U.S. 
Government review of the specific commodity is warranted prior to 
allowing exporters, reexporters or transferors to use License Exception 
STA. The imposition of this requirement is consistent with the use of 
the paragraph (g) process for other sensitive items in the 9x515 ECCNs 
and the ``600 series'' that have been moved to the CCL. Also in the 
Special Conditions for STA section, this final rule redesignates 
paragraph (2) as paragraph (3) and adds a new paragraph (2). This final 
rule adds new paragraph (2) in the Special Conditions for STA section 
to exclude the use of License Exception if the ``spacecraft'' 
controlled in ECCN 9A515.a.1, .a.2, .a.3, or .a.4 contains a separable 
or removable propulsion system enumerated in USML Category IV(d)(2) or 
USML Category XV(e)(12) and designated MT. This exclusion is being 
added because the MTCR Category I components identified in this 
paragraph are separable or removable and therefore for consistency with 
the intent to exclude MT items from License Exception STA eligibility, 
this final rule adds this as an additional restriction on the use of 
License Exception STA.
    In ECCN 9A515.a, this final rule revises ``items'' paragraph (a) to 
add control parameters for the additional spacecraft being moved from 
the USML to the CCL. Spacecraft moved from the USML to the CCL and 
classified under ECCN 9A515.a prior to publication of this rule are 
being moved to new ``items'' paragraph (a)(5). This final rule adds 
``items'' paragraphs (a)(1), (a)(2), (a)(3) and (a)(4) to ECCN 9A515 to 
control the additional spacecraft items being moved to the CCL. The 
identification of these more sensitive spacecraft items in their own 
``items'' level paragraph in ECCN 9A515 (9A515.a.1, .a.2, .a.3., .a.4) 
will allow for the imposition of more restrictive controls that are 
needed, while not impacting other spacecraft and related items that do 
not warrant the more restrictive controls (e.g., 9A515.a.5). These more 
restrictively controlled items consist of the following: 
``spacecraft,'' including satellites, and space vehicles, whether 
designated developmental, experimental, research or scientific, not 
enumerated in USML Category XV or described in ECCN 9A004 that have 
electro-optical remote sensing capabilities and having a clear aperture 
greater than 0.35 meters, but less than or equal to 0.50 meters (under 
ECCN 9A515.a.1). It includes those having remote sensing capabilities 
beyond NIR (under ECCN 9A515.a.2), those having radar remote sensing 
capabilities (e.g., AESA, SAR, or ISAR) having a center frequency equal 
to or greater than 1.0 GHz, but less than 10.0 GHz and having a 
bandwidth equal to or greater than 100 MHz, but less than 300 MHz 
(under 9A515.a.3). These more sensitive items being moved from the USML 
to the CCL also include those providing space-based logistics, 
assembly, or servicing of another ``spacecraft'' (under ECCN 
9A515.a.4).

[[Page 2878]]

    In ECCN 9A515.g, this final rule also adds ``items'' paragraph (g) 
to 9A515, as related to the changes described above to 9A515.a. 
Paragraph (g) is added to control remote sensing components that are 
``specially designed'' for ``spacecraft'' described in ECCN 9A515.a.1 
though 9A515.a.4, which were described above. Similar to the reason for 
identifying the items in ECCN 9A515.a.1 through .a.4., specifying that 
these remote sensing components are the ``items'' paragraphs (g)(1) 
through (g)(3) will allow the imposition of more restrictive controls 
on these components, without needing to impose the same level of 
restrictions on 9A515.x items, which is the paragraph under which these 
components would have been controlled if this new 9A515.g paragraph 
were not being added. Paragraph (g) controls remote sensing components 
for space-qualified optics with the largest lateral clear aperture 
dimension equal to or less than 0.35 meters; or with the largest clear 
aperture dimension greater than 0.35 meters but less than or equal to 
0.50 meters (under ECCN 9A515.g.1). In addition, paragraph (g) controls 
optical bench assemblies ``specially designed'' for the spacecraft 
added to ECCN 9A515.a.1 through .a.4 (under ECCN 9A515.g.2), and 
primary, secondary, or hosted payloads that perform a function of 
spacecraft added to 9A515.a.1. through .a.4. (under 9A515.g.3).
    ECCN 9E515. This final rule adds a new License Requirement Note, 
revises the Special Conditions for STA section and ``items'' paragraph 
(a), and adds ``items'' paragraph (f) in the List of ``items'' 
controlled section of ECCN 9E515. These changes are described in the 
next five paragraphs:
    Addition of License Requirement Note to 9E515. As a conforming 
change to the addition of Sec.  742.6(a)(8), described above, this 
final rule adds a License Requirement Note to the end of the License 
Requirements section of ECCN 9E515 to specify that the Commerce Country 
Chart is not used for determining license requirements for 
``technology'' classified 9E515.f. The new License Requirement also 
includes a cross reference to Sec.  742.6(a)(8) and alerts exporters 
and reexporters that this ``technology'' is subject to a worldwide 
license requirement.
    In ECCN 9E515, Special Conditions for STA section, this final rule 
revises paragraph (1) to add a reference to 9E515.f. This final rule 
specifies that such technology is not eligible for STA, unless the 
specific technology has been approved under the Sec.  740.20(g) process 
by the U.S. Government. This change is made to conform to the addition 
described below of ``technology'' under ECCN 9E515.f for the additional 
spacecraft and related components added to 9A515.a and .g described 
above. In addition, this final rule also specifies that the 
``technology'' controlled under ECCN 9E515.b, .d and .e are not 
eligible for License Exception STA, unless the specific ``technology'' 
has been approved under the Sec.  740.20(g) process by the U.S. 
Government. Prior to publication of this final rule, ECCN 9E515.b, .d 
and .e ``technology'' was excluded from License Exception STA in all 
cases, which based on public comments and interagency discussions was a 
more restrictive policy than was needed to protect U.S. national 
security and foreign policy interests for this ``technology'' 
classified under ECCN 9E515. Therefore, this final rule makes the other 
``technology'' (9E515.b, .d and .e) also eligible for the requests 
under Sec.  740.20(g), as described above in the changes this final 
rule makes to paragraph (g) of License Exception STA.
    In ECCN 9E515.a, this final rule revises ``items'' paragraph (a) to 
exclude the ``technology'' for the new commodities added to 9A515.a 
(.a.1 through .a.4) and .g. ``Required'' ``technology'' for these new 
commodities added to ECCN 9A515.a and .g will be controlled under ECCN 
9E515, but in order to impose more restrictive controls on those 
``technologies'' without impacting other 9E515 ``technology,'' this 
final rule adds this ``technology'' being moved to the CCL to a new 
``items'' paragraph (f) to 9E515, as described below.
    In ECCN 9E515.f, this final rule adds a new ``items'' paragraph (f) 
in the List of Items Controlled section to control ``technology'' 
``required'' for the ``development,'' ``production,'' installation, 
repair, overhaul, or refurbishing of commodities that this final rule 
adds to ECCN 9A515 under ``items'' paragraphs .a.1 through .a.4, or .g. 
As described above, this final rule is identifying these 
``technologies'' in their own ``items'' paragraph in order to allow 
more restrictive controls to be placed on these items without impacting 
other ECCN 9E515 ``technology.''

(2) Changes To Address the Movement of the James Webb Space Telescope 
(JWST) From the USML to the CCL

    ECCN 9A004. This final rule revises ECCN 9A004 to add a specific 
telescope, which was ``subject to the ITAR'' prior to the effective 
date of this final rule. A determination was made based on the public 
comments received by the Department of State and the space interagency 
working group (a group of U.S. Government agencies involved in the 
export control system and that deal with space related issues) that 
this specific telescope was within the scope of spacecraft and related 
items that did not warrant being subject to the ITAR. Therefore, 
consistent with the stated purpose of the May 13 rule, as well as 
section 38(f) of the Arms Export Control Act (AECA), the Department of 
State has moved this telescope, the James Webb Space Telescope (JWST), 
which is being developed, launched, and operated under the supervision 
of the U.S. National Aeronautics and Space Administration (NASA), to 
the CCL. The ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' that are ``specially designed'' for use in or with the 
JWST are also being moved from the ITAR and will be subject to the EAR, 
as of the effective date of the State and Commerce final rules.
    To control the JWST and the ``specially designed'' ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' for the JWST, this 
final rule adds two new ``items'' paragraph to ECCN 9A004. First, this 
final rule adds a new ``items'' paragraph (u) to 9A004 to control the 
JWST (the specific telescope) that is being moved to the CCL from the 
USML. Second, this final rule adds a new ``items'' paragraph (v) to 
control the ``specially designed'' ``parts,'' ``components,'' 
``accessories,'' or ``attachments'' for use in or with the JWST. The 
commodities this final rule adds to ECCN 9A004.v include the primary 
and secondary payloads of the JWST.
    This final rule also specifies in the control parameters in the new 
paragraph (v)(1) to (v)(4) that the ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' specified in paragraph (v) do not 
include items that are ``subject to the ITAR,'' microelectronic 
circuits, items in ECCNs 7A004 and 7A104, or in any ECCN containing 
``space qualified'' as a control criterion (See ECCN 9A515.x.4). As a 
conforming change, this final rule revises the phrase ``ECCN 9A004.x'' 
in paragraph (y) to add a reference to the ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' in paragraph (v) that this final 
rule adds. This final rule revises the phrase, so it now specifies 
``ECCN 9A004.v or .x,'' which is being done to account for the fact 
that paragraphs (v) and (x) will contain certain ``specially designed'' 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' for 
items enumerated in ECCN 9A004 and that the new items being added to 
paragraph (v) and (x) could be reclassified under 9A004.y, if 
subsequently the specific item is

[[Page 2879]]

identified in an interagency-cleared commodity classification (CCATS) 
pursuant to Sec.  748.3(e) as warranting control in 9A004.y. BIS 
anticipates an increase of approximately 20 license applications per 
year as a result of these changes to the EAR.
    In addition to the change to ECCN 9A004, this final rule makes 
changes to three 9x515 ECCNs to reflect that the JWST and the 
``specially designed'' ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' for the JWST are being added to 9A004. This final rule 
makes these conforming changes to ECCNs 9A515, 9B515 and 9E515. These 
are not substantive changes. These changes are described in the next 
three paragraphs.
    ECCN 9A515. This final rule revises the third sentence of the 
Related Controls paragraph in the List of Items Controlled section of 
ECCN 9A515 to add a reference to the JWST. This final rule also revises 
the Note to ECCN 9A515.a to specify items in ECCN 9A004 are not within 
the scope of 9A515.a. A reference to ECCN 9A004 needs to be added 
because the description of this Note to ECCN 9A515.a would otherwise 
include the JWST. This final rule revises ``items'' paragraph (b) in 
ECCN 9A515, to add a reference to ECCN 9A004.u for the JWST. This 
conforming change is needed to specify that ground control systems and 
training simulators ``specially designed'' for telemetry, tracking and 
control of the JWST are also within the scope of ECCN 9A515.b. For 
similar reasons, this final rule revises ``items'' paragraph (e) to add 
a reference to ECCN 9A004.u. This conforming change is made to specify 
that the microelectronic circuits and discrete electronic components 
described in ECCN 9A515.e include those ``specially designed'' for the 
JWST. This final rule also makes some changes to the .y paragraph in 
ECCN 9A515, which are discussed further below.
    ECCN 9B515. This final rule revises ``items'' paragraph (a) in the 
List of Items Controlled section to add a reference to ECCN 9A004.u. 
This conforming change is needed to specify that the test, inspection, 
and production ``equipment'' ``specially designed'' for the 
``production'' or ``development'' of the JWST are also classified under 
ECCN 9B515.a. For similar reasons, this final rule revises the Note to 
ECCN 9B515.a to add a reference to ECCN 9A004.u. This conforming change 
is intended to specify that ECCN 9B515.a includes equipment, cells, and 
stands ``specially designed'' for the analysis or isolation of faults 
in the JWST, in addition to the other commodities enumerated in the 
Note to ECCN 9A515.a.
    ECCN 9E515. This final rule also revises the third sentence in the 
``Related Controls'' paragraph in the List of Items Controlled section 
in ECCN 9E515 to add a reference to the JWST. This sentence will alert 
persons classifying technology for the JWST to see ECCNs 9E001 and 
9E002.

(3) Other Corrections and Clarifications to Interim Spacecraft Final 
Rule

    ECCN 9A515. This final rule adds two sentences at the end of the 
introductory text in the ``items'' paragraph in the List of Items 
Controlled section of ECCN 9A515, consistent with the notes to USML 
Category XV. The introductory paragraph clarifies when ``spacecraft'' 
and other items described in ECCN 9A515 remain subject to the EAR even 
if exported, reexported, or transferred (in-country) with defense 
articles ``subject to the ITAR'' integrated into and included therein 
as integral parts of the item. This introductory paragraph includes 
some application examples and some qualifiers for when the ITAR 
jurisdiction would reapply to such defense articles. This final rule 
adds two new sentences to clarify two additional instances where the 
jurisdiction of the ITAR would be applicable in such scenarios. The 
first new sentence is being added to clarify that the removal of a 
defense article subject to the ITAR from the spacecraft is a retransfer 
under the ITAR--meaning the removal of a defense article would require 
an ITAR authorization. The ITAR authorization requirement would apply 
regardless of which CCL authorization the spacecraft is exported under 
the EAR. The second sentence clarifies that transfer of technical data 
regarding the defense article subject to the ITAR integrated into the 
spacecraft would require an ITAR authorization.
    ECCN 9B515. This final rule revises the License Requirements 
section of ECCN 9B515 to add a missile technology (MT) control. The MT 
control is being added to impose a license requirement on equipment in 
ECCN 9B515.a that is for the ``development'' or ``production'' of 
commodities in USML Category XV(e)(12) and XV(e)(19) that are MT 
controlled. This change is made to conform to the Missile Technology 
Control Regime (MTCR) Annex and the corresponding MT controls in USML 
Category XV (MTCR Annex, Category I: Item 2.B.2.). BIS anticipates an 
increase of approximately 10 license applications per year as a result 
of this change to the EAR, along with the conforming MT change made to 
ECCN 9E515 described in the next paragraph.
    ECCN 9E515. This final rule, as a conforming change to the change 
to ECCN 9B515, revises the MT Control paragraph in the License 
Requirements section on ECCN 9E515. This final rule revises the MT 
Control paragraph in ECCN 9E515 to add technology for items in 9B515.a 
that are controlled for MT reasons. This change is made to conform to 
the MTCR Annex and the corresponding MT controls in USML Category XV 
(MTCR Annex, Category I: Item 2.E.1.).

(4) Addition of .y Items to ECCN 9A515

    This final rule adds five .y paragraphs (ECCN 9A515.y.2, .y.3., 
.y.4, .y.5, and .y.6) as additional commodities specified under 
paragraph (y) in this ECCN. As noted in the introductory text of 
paragraph (y), the U.S. Government through the Sec.  748.3(e) process 
will identify the items that warrant being classified under 9x515.y, 
such as the commodities being specified under ECCN 9A515.y.2 to .y.6 in 
this final rule. Specifically, the following space grade or for 
spacecraft applications commodities: thermistors (ECCN 9A515.y.2); RF 
microwave bandpass ceramic filters (dielectric resonator bandpass 
filters) (9A515.y.3); space grade or for spacecraft applications hall 
effect sensors (9A515.y.4); subminiature (SMA and SMP) plugs and 
connectors, TNC plugs and cable and connector assemblies with SMA plugs 
and connectors (9A515.y.5); and flight cable assemblies (9A515.y.6) 
have been identified in interagency-cleared commodity classifications 
(CCATS) pursuant to Sec.  748.3(e) as warranting control in 9A515.y.2 
to .y.6. The additions described above for ECCN 9A515.y.2 to y.6 are 
the second set of approved populations of .y controls being added to 
9A515. As stated in the May 13 rule, as well as the July 13 rule (which 
added ECCN 9A515.y.1), BIS (along with State and Defense) will continue 
to populate the 9A515.y with additional entries as additional 
classification determinations are made in response to requests from the 
public under Sec.  748.3(e).
    As required by Executive Order (EO) 13563, BIS intends to review 
this rule's impact on the licensing burden on exporters. Commerce's 
full plan is available at: http://open.commerce.gov/news/2011/08/23/plan-retrospective-analysis-existing-rules. Data are routinely 
collected on an ongoing basis, including through the comments to be 
submitted and as a result of new information and results from AES data. 
These results and data have been, and

[[Page 2880]]

will continue to form, the basis for ongoing reviews of the rule and 
assessments of various aspects of the rule. As part of its plan for 
retrospective analysis under EO 13563, BIS intends to conduct periodic 
reviews of this rule and to modify, or repeal, aspects of this rule, as 
appropriate, and after public notice and comment. Some of the changes 
described above are limited to corrections or clarifications of what 
was included in the May 13 rule. BIS estimates that the substantive 
changes described above will result in an increase of 30-40 license 
applications per year, which is within the previous estimate made for 
the number of license applications that BIS anticipated receiving as a 
result of the movement of these spacecraft and related items to the CCL 
under the May 13 rule.

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 4, 2016, 81 FR 52587 (August 8, 2016), 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 final rule has been designated a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) of Executive Order 12866.
    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 regulation involves collections previously 
approved by OMB under control number 0694-0088, Simplified Network 
Application Processing System, which includes, among other things, 
license applications and carries a burden estimate of 43.8 minutes for 
a manual or electronic submission. Total burden hours associated with 
the PRA and OMB control number 0694-0088 are expected to increase 
slightly as a result of this rule. The expected increase in total 
burden hours is expected to be minimal and to not exceed the existing 
estimates for burden hours associated with the PRA and OMB control 
number 0694-0088. You may send comments regarding the collection of 
information associated with this rule, including suggestions for 
reducing the burden, to Jasmeet K. Seehra, Office of Management and 
Budget (OMB), by email to Jasmeet_K._Seehra@omb.eop.gov, or by fax to 
(202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The Department finds that there is good cause under 5 U.S.C. 
553(b)(B) to waive the provisions of the Administrative Procedure Act 
(APA) requiring prior notice and the opportunity for public comment 
because they are either unnecessary or contrary to the public interest. 
The following revisions are non-substantive or are limited to ensure 
consistency with the intent of the May 13, 2014 interim final rule, and 
thus prior notice and the opportunity for public comment is 
unnecessary. ECCNs 9A004, 9A515, 9B515, and 9E515 are revised to make 
clarifications to the EAR to ensure consistency with the intent of the 
May 13, 2014 interim final rule for purposes of what spacecraft and 
related items warranted ITAR control and what spacecraft items were 
intended to be moved to the EAR, as well as for consistency with the 
MTCR Annex for certain changes made to ECCNs 9B515 and 9E515. This 
includes the changes made to Sec. Sec.  740.20(g), 742.6(a)(1), (a)(8), 
(b)(1)(i), (b)(5) and (b)(6), and 750.4(b)(4), (b)(8) and (d)(2)(iv) to 
ensure appropriate controls are in place under the EAR for the 
additional spacecraft and related items that are moved to the CCL in 
this final rule in response to public comments and additional U.S. 
Government review of those comments. Finally, as contemplated in the 
May 13 rule, BIS has added five entries to the .y paragraph of ECCN 
9A515, which were added as a result of the Sec.  748.3(e) process. For 
purposes of the APA, there is good cause, and it is in the public 
interest to incorporate this change so the public can benefit from 
understanding the classification of the items. These revisions are 
important to implement as soon as possible so the public will be aware 
of the correct text and meaning of current EAR provisions.
    BIS finds good cause to waive the 30-day delay in effectiveness 
under 5 U.S.C. 553(d)(3). As mentioned previously, the revisions made 
by this rule are non-substantive or are limited to ensure consistency 
with the intent of the May 13, 2014 interim final rule and are 
important to implement as soon as possible so the public will be aware 
of the correct text and meaning of current EAR provisions.
    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for these amendments by 5 
U.S.C. 553, or by any other law, the analytical requirements of the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not applicable.

List of Subjects

15 CFR Parts 740 and 750

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, the Export Administration Regulations (15 CFR parts 
730-774) are amended as follows:

PART 740--[AMENDED]

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

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 4, 2016, 81 FR 52587 (August 8, 2016).

0
2. Section 740.20 is amended by revising the heading of paragraph (g) 
and paragraph (g)(1) to read as follows:

Sec.  740.20  License exception strategic trade authorization (STA).

* * * * *
    (g) License Exception STA eligibility requests for 9x515 and ``600 
series'' items--(1) Applicability. Any person may request License 
Exception STA eligibility for end items described in ECCN 0A606.a, ECCN 
8A609.a, ECCN 8A620.a or .b, ``spacecraft'' in ECCN

[[Page 2881]]

9A515.a.1, .a.2, .a.3, .a.4, or .g, that provide space-based logistics, 
assembly or servicing of any spacecraft (e.g., refueling), ECCN 
9A610.a, or ECCN 9E515.b, .d, .e, or .f.
* * * * *

PART 742--[AMENDED]

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

    Authority: 50 U.S.C. 4601 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, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Notice of November 12, 2015, 80 FR 70667 (November 13, 2015); Notice 
of August 4, 2016, 81 FR 52587 (August 8, 2016).

0
4. Section 742.6 is amended:
0
a. By revising paragraph (a)(1);
0
b. By adding paragraph (a)(8);
0
c. By revising the fourth sentence of paragraph (b)(1)(i); and
0
d. By adding paragraphs (b)(5) and (6), to read as follows:

Sec.  742.6  Regional stability.

    (a) * * *
    (1) RS Column 1 license requirements in general. A license is 
required for exports and reexports to all destinations, except Canada, 
for all items in ECCNs on the CCL that include RS Column 1 in the 
Country Chart column of the ``License Requirements'' section. 
Transactions described in paragraphs (a)(2), (a)(3), or (a)(8) of this 
section are subject to the RS Column 1 license requirements set forth 
in those paragraphs rather than the license requirements set forth in 
this paragraph (a)(1).
* * * * *
    (8) Special RS Column 1 license requirement applicable to certain 
spacecraft and related items. A license is required for all 
destinations, including Canada, for spacecraft and related items 
classified under ECCN 9A515.a.1, .a.2., .a.3., .a.4., .g, and ECCN 
9E515.f.
    (b) * * *
    (1) * * *
    (i) *** 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 (a)(8) of this section will also be 
reviewed consistent with United States arms embargo policies in Sec.  
126.1 of the ITAR (22 CFR 126.1) if destined to a country set forth in 
Country Group D:5 in Supplement No. 1 to part 740 of the EAR. * * *
* * * * *
    (5) Spacecraft for launch. (i) Applications to export or reexport a 
``spacecraft'' controlled under ECCN 9A515.a for launch in or by a 
country that is not a member of the North Atlantic Treaty Organization 
(NATO) or a major non-NATO ally of the United States (as defined in 22 
CFR 120.31 and 120.32), will require a technology transfer control plan 
approved by the Department of Defense, an encryption technology control 
plan approved by the National Security Agency, and Department of 
Defense monitoring of all launch activities.
    (ii) Applications to export or reexport a ``spacecraft'' controlled 
under ECCN 9A515.a for launch in or by a country that is a member of 
the North Atlantic Treaty Organization (NATO) or a major non-NATO ally 
of the United States (as defined in 22 CFR 120.31 and 120.32), may 
require a technology transfer control plan approved by the Department 
of Defense, an encryption technology control plan approved by the 
National Security Agency, or Department of Defense monitoring of launch 
activities.
    (6) Remote sensing spacecraft. Applications to export or reexport a 
``spacecraft'' described in ECCN 9A515.a.1,.a.2, a.3, or .a.4, 
sensitive remote sensing components described in 9A515.g, or 
``technology'' described in ECCN 9E515.f may require a government-to-
government agreement at the discretion of the U.S. Government.
* * * * *

PART 750--[AMENDED]

0
5. The authority citation for 15 CFR part 750 continues to read as 
follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; Sec. 
1503, Pub. L. 108-11, 117 Stat. 559; 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, 78 FR 16129, 3 CFR, 2013 Comp., p. 223; 
Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., 
p. 320; Notice of August 4, 2016, 81 FR 52587 (August 8, 2016).

0
6. Section 750.4 is amended:
0
a. By adding paragraph (b)(8); and
0
b. By adding paragraph (d)(2)(iv) to read as follows:

Sec.  750.4  Procedures for processing license applications.

* * * * *
    (b) * * *
    (8) Satellites for launch. Applicant must obtain approval by the 
Department of Defense of a technology transfer control plan and the 
National Security Agency of an encryption technology transfer control 
plan and must make arrangements with the Department of Defense for 
monitoring of all launch activities.
* * * * *
    (d) * * *
    (2) * * *
    (iv) Remote Sensing Interagency Working Group (RSIWG). The RSIWG, 
chaired by the State Department, reviews license applications involving 
remote sensing spacecraft described in ECCN 9A515.a.1, .a.2, .a.3, or 
.a.4, sensitive remote sensing components described in 9A515.g, or 
``technology'' described in ECCN 9E515.f.
* * * * *

PART 774--[AMENDED]

0
7. The authority citation for 15 CFR part 774 continues to read as 
follows:

    Authority: 50 U.S.C. 4601 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; 42 U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C. 
4305; 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 4, 2016, 81 FR 52587 (August 8, 
2016).

0
8. In Supplement No. 1 to Part 774, Category 9--Aerospace and 
Propulsion, ECCN 9A004 is amended:
0
a. By revising the License Requirements table;
0
b. By adding ``items'' paragraph u. and v. to the List of Items 
Controlled section; and
0
c. By revising ``items'' paragraph y. in the List of Items Controlled 
section to read as follows:

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

* * * * *
9A004 Space launch vehicles and ``spacecraft,'' ``spacecraft 
buses,'' ``spacecraft payloads,'' ``spacecraft'' on-board systems or 
equipment, and terrestrial equipment, as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS and AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to 9A004.u, .v, .w and .x......  NS Column 1
AT applies to 9A004.u, .v, .w, .x and .y..  AT Column 1
 

* * * * *

[[Page 2882]]

List of Items Controlled

* * * * *
    u. The James Webb Space Telescope (JWST) being developed, 
launched, and operated under the supervision of the U.S. National 
Aeronautics and Space Administration (NASA).
    v. ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' that are ``specially designed'' for the James Webb 
Space Telescope and that are not:
    v.1. Enumerated or controlled in the USML;
    v.2. Microelectronic circuits;
    v.3. Described in ECCNs 7A004 or 7A104; or
    v.4. Described in an ECCN containing ``space-qualified'' as a 
control criterion (See ECCN 9A515.x.4).
* * * * *
    y. Items that would otherwise be within the scope of ECCN 
9A004.v or .x but that have been identified in an interagency-
cleared commodity classification (CCATS) pursuant to Sec.  748.3(e) 
as warranting control in 9A004.y.

0
 9. In Supplement No. 1 to Part 774, Category 9--Aerospace and 
Propulsion, ECCN 9A515 is amended:
0
a. By adding a License Requirement Note at the end of the License 
Requirements section;
0
b. By revising the Special Conditions for STA section;
0
c. By revising the Related Controls paragraph in the List of Items 
Controlled section;
0
d. By revising the introductory text to the ``items'' paragraph in the 
List of items Controlled section;
0
e. By revising ``items'' paragraphs a. and b. in the List of Items 
Controlled section;
0
f. By revising the introductory text of paragraphs d. and e. in the 
List of Items Controlled section;
0
g. By adding ``items'' paragraph g. in the list of Items Controlled 
section; and
0
h. By adding ``items'' paragraphs y.2., y.3., y.4., y.5. and y.6. to 
read as follows:

9A515 ``Spacecraft'' and related commodities, as follows (see List 
of Items Controlled).

License Requirements

* * * * *

    License Requirement Note: The Commerce Country Chart is not used 
for determining license requirements for commodities classified in 
ECCN 9A515.a.1, .a.2., .a.3., .a.4, and .g. See Sec.  742.6(a)(8), 
which specifies that such commodities are subject to a worldwide 
license requirement.

* * * * *

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 ``spacecraft'' in ECCN 
9A515.a.1, .a.2, .a.3, or .a.4, or items in 9A515.g, unless 
determined by BIS to be eligible for License Exception STA in 
accordance with Sec.  740.20(g) (License Exception STA eligibility 
requests for certain 9x515 and ``600 series'' items). (2) License 
Exception STA may not be used if the ``spacecraft'' controlled in 
ECCN 9A515.a.1, .a.2, .a.3, or .a.4 contains a separable or 
removable propulsion system enumerated in USML Category IV(d)(2) or 
USML Category XV(e)(12) and designated MT. (3) Paragraph (c)(2) of 
License Exception STA (Sec.  740.20(c)(2) of the EAR) may not be 
used for any item in 9A515.

List of Items Controlled

Related Controls: Spacecraft, launch vehicles and related articles 
that are enumerated in the USML, and technical data (including 
``software'') directly related thereto, and all services (including 
training) directly related to the integration of any satellite or 
spacecraft to a launch vehicle, including both planning and onsite 
support, or furnishing any assistance (including training) in the 
launch failure analysis or investigation for items in ECCN 9A515.a, 
are ``subject to the ITAR.'' All other ``spacecraft,'' as enumerated 
below and defined in Sec.  772.1, are subject to the controls of 
this ECCN. See also ECCNs 3A001, 3A002, 3A991, 3A992, 6A002, 6A004, 
6A008, and 6A998 for specific ``space-qualified'' items, 7A004 and 
7A104 for star trackers, and 9A004 for the International Space 
Station (ISS), James Webb Space Telescope (JWST), and ``specially 
designed'' ``parts'' and ``components'' therefor. See USML Category 
XI(c) for controls on microwave monolithic integrated circuits 
(MMICs) that are ``specially designed'' for defense articles. See 
ECCN 9A610.g for pressure suits used for high altitude aircraft.
* * * * *
Items: ``Spacecraft'' and other items described in ECCN 9A515 remain 
subject to the EAR even if exported, reexported, or transferred (in-
country) with defense articles ``subject to the ITAR'' integrated 
into and included therein as integral parts of the item. In all 
other cases, such defense articles are subject to the ITAR. For 
example, a 9A515.a ``spacecraft'' remains ``subject to the EAR'' 
even when it is exported, reexported, or transferred (in-country) 
with a ``hosted payload'' described in USML Category XV(e)(17) 
incorporated therein. In all other cases, a ``hosted payload'' 
performing a function described in USML Category XV(a) always 
remains a USML item. The removal of the defense article subject to 
the ITAR from the spacecraft is a retransfer under the ITAR and 
would require an ITAR authorization, regardless of the CCL 
authorization the spacecraft is exported under. Additionally, 
transfer of technical data regarding the defense article subject to 
the ITAR integrated into the spacecraft would require an ITAR 
authorization.
* * * * *
    a. ``Spacecraft,'' including satellites, and space vehicles, 
whether designated developmental, experimental, research or 
scientific, not enumerated in USML Category XV or described in ECCN 
9A004, that:
    a.1. Have electro-optical remote sensing capabilities and having 
a clear aperture greater than 0.35 meters, but less than or equal to 
0.50 meters;
    a.2. Have remote sensing capabilities beyond NIR (i.e., SWIR, 
MWIR, or LWIR);
    a.3. Have radar remote sensing capabilities (e.g., AESA, SAR, or 
ISAR) having a center frequency equal to or greater than 1.0 GHz, 
but less than 10.0 GHz and having a bandwidth equal to or greater 
than 100 MHz, but less than 300 MHz;
    a.4. Provide space-based logistics, assembly, or servicing of 
another ``spacecraft''; or
    a.5. Are not described in ECCN 9A515.a.1, .a.2, .a.3 or .a.4.

    Note: ECCN 9A515.a includes commercial communications 
satellites, remote sensing satellites, planetary rovers, planetary 
and interplanetary probes, and in-space habitats, not identified in 
ECCN 9A004 or USML Category XV(a).

    b. Ground control systems and training simulators ``specially 
designed'' for telemetry, tracking, and control of the 
``spacecraft'' controlled in paragraphs 9A004.u or 9A515.a.
* * * * *
    d. Microelectronic circuits (e.g., integrated circuits, 
microcircuits, or MOSFETs) and discrete electronic components rated, 
certified, or otherwise specified or described as meeting or 
exceeding all the following characteristics and that are ``specially 
designed'' for defense articles, ``600 series'' items, or items 
controlled by ECCNs 9A004.v or 9A515:
* * * * *
    e. Microelectronic circuits (e.g., integrated circuits, 
microcircuits, or MOSFETs) and discrete electronic components that 
are rated, certified, or otherwise specified or described as meeting 
or exceeding the characteristics in either paragraph e.1 or e.2, AND 
``specially designed'' for defense articles controlled by USML 
Category XV or items controlled by ECCNs 9A004.u or 9A515:
* * * * *
    g. Remote sensing components ``specially designed'' for 
``spacecraft'' described in ECCNs 9A515.a.1 through 9A515.a.4 as 
follows:
    g.1. Space-qualified optics (i.e., lens, mirror, membrane having 
active properties (e.g., adaptive, deformable)) with the largest 
lateral clear aperture dimension equal to or less than 0.35 meters; 
or with the largest clear aperture dimension greater than 0.35 
meters but less than or equal to 0.50 meters;
    g.2. Optical bench assemblies ``specially designed'' for ECCN 
9A515.a.1, 9A515.a.2, 9A515.a.3, or 9A515.a.4 ``spacecraft;'' or
    g.3. Primary, secondary, or hosted payloads that perform a 
function of ECCN 9A515.a.1, 9A515.a.2, 9A515.a.3, or 9A515.a.4 
``spacecraft.''
* * * * *
    y. * * *
    y.2. Space grade or for spacecraft applications thermistors;
    y.3. Space grade or for spacecraft applications RF microwave 
bandpass ceramic filters (Dielectric Resonator Bandpass Filters);

[[Page 2883]]

    y.4. Space grade or for spacecraft applications hall effect 
sensors;
    y.5. Space grade or for spacecraft applications subminiature 
(SMA and SMP) plugs and connectors, TNC plugs and cable and 
connector assemblies with SMA plugs and connectors; and
    y.6. Space grade or for spacecraft applications flight cable 
assemblies.

0
10. In Supplement No. 1 to Part 774, Category 9--Aerospace and 
Propulsion, ECCN 9B515 is amended:
0
a. By revising the License Requirements section; and
0
b. By revising ``items'' paragraph a. in the List of Items Controlled 
section to read as follows:

9B515 Test, inspection, and production ``equipment'' ``specially 
designed'' for ``spacecraft'' and related commodities, as follows 
(see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, RS, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
MT applies to equipment in 9B515.a for the  MT Column 1
 ``development'' or ``production'' of
 commodities in USML Category XV(e)(12)
 and XV(e)(19) that are MT controlled.
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
 

* * * * *
Items:
    a. Test, inspection, and production ``equipment'' ``specially 
designed'' for the ``production'' or ``development'' of commodities 
enumerated in ECCNs 9A004.u, 9A515.a, or USML Category XV(a) or 
XV(e).

    Note:
    ECCN 9B515.a includes equipment, cells, and stands ``specially 
designed'' for the analysis or isolation of faults in commodities 
enumerated in ECCNs 9A004.u or 9A515.a, or USML Category XV(a) or 
XV(e).

* * * * *

0
11. In Supplement No. 1 to Part 774, Category 9--Aerospace and 
Propulsion, ECCN 9E515 is amended:
0
a. By revising the License Requirements table;
0
b. By adding a License Requirement Note at the end of the License 
Requirements section;
0
c. By revising paragraph (1) in the Special Conditions for STA section;
0
d. By revising the Related Controls paragraph in the List of Items 
Controlled section;
0
e. By revising ``items'' paragraph a. in the List of Items Controlled 
section; and
0
f. By adding ``items'' paragraph f. in the list of Items Controlled 
section to read as follows:

9E515 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, repair, overhaul, or 
refurbishing of ``spacecraft'' and related commodities, as follows 
(see List of Items Controlled).

License Requirements

* * * * *

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry except 9E515.y.  NS Column 1
MT applies to technology for items in       MT Column 1
 9A515.d, 9A515.e.2 and 9B515.a controlled
 for MT reasons.
RS applies to entire entry except 9E515.y.  RS Column 1
AT applies to entire entry................  AT Column 1
 

    License Requirement Note:
    The Commerce Country Chart is not used for determining license 
requirements for ``technology'' classified ECCN 9E515.f. See Sec.  
742.6(a)(8), which specifies that such ``technology'' is subject to 
a worldwide license requirement.

* * * * *

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 ECCN 9E515.b, .d, .e, 
or .f unless determined by BIS to be eligible for License Exception 
STA in accordance with Sec.  740.20(g) (License Exception STA 
eligibility requests for certain 9x515 and ``600 series'' items). * 
* *

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category XV are subject to the control of USML 
paragraph XV(f). See also ECCNs 3E001, 3E003, 6E001, and 6E002 for 
specific ``space-qualified'' items. See ECCNs 9E001 and 9E002 for 
technology for the International Space Station, the James Webb Space 
Telescope (JWST) and ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' therefor. See USML category 
XV(f) for controls on technical data and defense services related to 
launch vehicle integration.
* * * * *
Items:
    a. ``Technology'' ``required'' for the ``development,'' 
``production,'' installation, repair (including on-orbit anomaly 
resolution and analysis beyond established procedures), overhaul, or 
refurbishing of commodities controlled by ECCN 9A515 (except 
9A515.a.1, .a.2, .a.3, .a.4, .b, .d, .e, or .g), ECCN 9B515, or 
``software'' controlled by ECCN 9D515.a.
* * * * *
    f. ``Technology'' ``required'' for the ``development,'' 
``production,'' installation, repair (including on-orbit anomaly 
resolution and analysis beyond established procedures), overhaul, or 
refurbishing of commodities controlled by ECCN 9A515.a.1, .a.2, 
.a.3, .a.4, or .g.
* * * * *

    Dated: December 27, 2016.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export Administration.
[FR Doc. 2016-31755 Filed 1-9-17; 8:45 am]
 BILLING CODE P