Document ID: BIS-2024-0001-0001
Agency: bis
Document Type: Rule
Title: Export Administration Regulations Based on 2018, 2019, and 2021 Missile Technology Control Regime Plenary Agreements; License Exception Eligibility
Posted Date: 2023-12-08T05:00Z

[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Rules and Regulations]
[Pages 85487-85495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26682]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 774

[Docket No. 230926-0234]
RIN 0694-AI66

Export Administration Regulations for Missile Technology Items: 
2018, 2019, and 2021 Missile Technology Control Regime Plenary 
Agreements; and License Exception Eligibility

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) to reflect changes to the 
Missile Technology Control Regime (MTCR) Annex that were agreed to by 
MTCR member countries at the Technical Experts Meetings (TEMs) in March 
and November 2018, May and October 2019, and October 2021. This rule 
also expands the eligibility for the use of license exceptions under 
the EAR for MT-controlled items. These changes to license exception 
eligibility are also being made as part of a broader effort announced 
today that will liberalize several categories of export licensing 
requirements and the availability of export license exceptions for key 
allied and partner countries, as well as for members of certain 
multilateral export control regimes.

DATES: This rule is effective December 8, 2023.

FOR FURTHER INFORMATION CONTACT: Sharon Bragonje, Nuclear and Missile 
Technology Controls Division, Bureau of Industry and Security, Phone: 
(202) 482-0434; Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The Missile Technology Control Regime (MTCR or Regime) is an export 
control arrangement among 35 nations, including most of the world's 
suppliers of advanced missiles and missile-related equipment, 
materials, software, and technology. The regime establishes a common 
list of controlled items (the Annex) and a common export control policy 
(the Guidelines) that member countries implement in accordance with 
their national export controls. The MTCR seeks to limit the risk of 
proliferation of weapons of mass destruction by controlling exports of 
goods and technologies that could make a contribution to delivery 
systems (other than manned aircraft) for such weapons.
    In 1993, the MTCR's original focus on missiles for nuclear weapons 
delivery was expanded to include the proliferation of missiles for the 
delivery of all types of weapons of mass destruction (WMD), i.e., 
nuclear, chemical, and biological weapons. Such proliferation has been 
identified as a threat to international peace and security. One way to 
address this threat is to maintain vigilance over the transfer of 
missile equipment, material, and related technologies usable for 
systems capable of delivering WMD. MTCR members voluntarily pledge to 
adopt the Regime's export Guidelines and to restrict the export of 
items contained in the Regime's Annex. The Regime's Guidelines are 
implemented through the national export control laws, regulations and 
policies of the regime members.

[[Page 85488]]

Amendments to the Export Administration Regulations (EAR)

    This final rule, as further described in section A of this 
preamble, revises six ECCNs under the EAR to reflect changes to the 
MTCR Annex agreed to at the March 2018 Technical Experts Meeting (TEM) 
in Reykjavik, Iceland; November 2018 TEM in Basel, Switzerland; May 
2019 TEM in Berlin, Germany; October 2019 TEM in Auckland, New Zealand; 
and October 2021 TEM in Sochi, Russian Federation. References are 
provided below for the MTCR Annex changes agreed to at the meetings 
that correspond to the EAR revisions described below. These changes are 
primarily editorial corrections to these ECCNs for consistency with the 
MTCR Annex. This rule also makes changes to the Commerce Control List 
(CCL) (supplement no. 1 to part 774 of the EAR) to conform with the 
MTCR Annex. All of the changes in this final rule align the MT controls 
on the CCL with the MTCR Annex. In the discussion below, BIS identifies 
the origin of each change in the regulatory text of this final rule by 
using one the following parenthetical phrases: (Reykjavik 2018 TEM), 
(Basel 2018 TEM), (Berlin 2019 TEM), (Auckland 2019 TEM), (Sochi 2021 
TEM), or (Changes to Align with MTCR Annex).
    This final rule expands the eligibility of license exceptions for 
MT-controlled items, as further described in section B, by amending the 
EAR to expand the eligibility for the use of four license exceptions 
under the EAR for MT-controlled items and to add one new license 
exception authorization under an existing license exception. In 
addition, this rule revises the general restriction on the use of 
license exceptions to ensure that the limited set of additional license 
exception authorizations specified are not available for destinations 
of concern for missile technology reasons or that are subject to a U.S. 
arms embargo and makes conforming changes where needed to license 
exceptions to ensure that only certain license exceptions or portions 
of license exceptions will be available for MT-controlled items. These 
changes to license exception eligibility for MT-controlled items will 
better harmonize the availability of license exceptions for such items 
with the availability of license exceptions that are available for 
other items of similar sensitivity under the EAR. Because of the terms 
and conditions of existing licenses exceptions there will only be a 
limited number of license exceptions or portions of those license 
exceptions that will be available for MT-controlled items.
    Making these limited additional license exceptions or portions of 
those license exceptions available will ease the burden on exporters, 
reexporters, and transferors and allow for BIS, as well as the other 
agencies that review BIS licenses, to focus its license reviews on 
transactions that warrant individual reviews through the license review 
process.
    The changes with this rule to license exception eligibility and two 
other ally and partner rules published today are part of a broad effort 
to liberalize controls for allies and partner countries under the EAR 
(15 CFR parts 730-774). Together, these rules will ease several 
categories of export licensing requirements and increase the 
availability of export license exceptions for key allied and partner 
countries, as well as members of certain multilateral export control 
regimes.

A. Amendments to the Commerce Control List (CCL) To Reflect Changes to 
the MTCR Annex

    This final rule amends the CCL to reflect changes to the MTCR Annex 
by amending six ECCNs, as follows:
    ECCN 1C111. This final rule amends ECCN 1C111 by adding a new 
``items'' paragraph e in the List of Items Controlled section to 
control Dimethylaminoethylazide (DMAZ) (CAS 86147-04-8) as a Hydrazine 
replacement fuel, and [Reserves] ``items'' paragraph e.2 to conform to 
Federal Register requirements for the addition of ``items'' paragraph 
e.1 (Changes to Align with MTCR Annex). DMAZ was added to the MTCR 
Annex in 2014. At the time, it was not added to the United States 
Munitions List (USML) or the CCL. This change to ECCN 1C111 corrects 
that oversight, ensuring that DMAZ will be appropriately controlled 
under the EAR and consistent with U.S. Government commitments to the 
MTCR. This is consistent with the 2014 rules that transitioned 
hydrazine and its derivatives to the CCL. These changes are expected to 
result in an increase of three to five license applications received 
annually by BIS, due to the low volume of such items exported.
    In addition, BIS takes this opportunity to correct the ITAR 
citation regarding ferrocene derivatives controlled under Category 
V(f)(4) in paragraph (2) of the Related Controls paragraph in the List 
of Items Controlled section. Ferrocene derivatives were moved from 
paragraph (f)(3) to (f)(4) by Department of State Export Control Reform 
(ECR) rule 79 FR 34, Jan. 2, 2014, but were not included in the 
companion BIS rule, 79 FR 264, Jan. 2, 2014. To preclude the need for 
similar amendments in the future, the citation is limited to the higher 
level USML Category. A corresponding revision is made in reference to 
Inhibited Red Fuming Nitric Acid in Related Controls paragraph (5).
    ECCN 2A101. This final rule amends ECCN 2A101 by revising the 
heading to add the word ``of'' after the phrase ``having all,'' so this 
part of the heading will now read as ``having all of the following 
characteristics.'' This is an editorial correction for consistency with 
the MTCR Annex that does not substantively change the scope of ECCN 
2A101 (MTCR Annex Change, Category II: Item 3.A.7., Reykjavik 2018 
TEM). These changes are not expected to have any impact on the number 
of license applications received by BIS.
    ECCN 2B119. This final rule amends ECCN 2B119 by revising ``items'' 
paragraph a in the List of Items Controlled section. In ``items'' 
paragraph a, this final rule adds the word ``of'' after the phrase 
``having all,'' so the control parameter will now read as ``balancing 
machines having all of the following characteristics.'' This is an 
editorial correction for consistency with the MTCR Annex that does not 
substantively change the scope of ECCN 2B119 (MTCR Annex Change, 
Category II: Item 9.B.2., Reykjavik 2018 TEM). This change is not 
expected to have any impact on the number of license applications 
received by BIS.
    ECCN 6A107. This final rule amends ECCN 6A107 by revising ``items'' 
paragraphs a, in the List of Items Controlled section. In ``items'' 
paragraphs a, this final rule adds the word ``of'' after the phrase 
``having all'' and adds the word ``characteristics'' after the word 
``following,'' so the control parameter will now read as ``Gravity 
meters having all of the following characteristics.'' This is an 
editorial correction for consistency with the MTCR Annex that does not 
substantively change the scope of the ECCN (MTCR Annex Change, Category 
II: Item 12.A.3., Reykjavik 2018 TEM). These changes are not expected 
to have any impact on the number of license applications received by 
BIS.
    ECCN 9A101. This final rule amends ECCN 9A101 by revising ``items'' 
paragraphs a.2 in the List of Items Controlled section to remove the 
parenthetical phrase ``at maximum continuous power at sea level static 
conditions using the ICAO standard atmosphere.'' This final rule also 
redesignates Technical notes 2 and 3 as Technical notes 3 and 4, 
respectively, and adds a new Technical Note 2 in the

[[Page 85489]]

List of Items Controlled section (MTCR Annex Change, Category II: Item 
3.A.1., Berlin 2019 TEM). This final rule adds new Technical note 2 to 
specify that specific fuel consumption is determined at maximum 
continuous thrust for engine type un-installed at sea level static 
conditions using the ICAO standard atmosphere. This change is a 
correction on how specific fuel consumption is determined--using thrust 
rather than power. Additionally, the parenthetical phrase in ``items'' 
paragraph a.2 is being moved from a parenthetic in the control text to 
a technical note, where it better belongs in the context of ECCN 9A101. 
This is a clarification and will not change any scope of control. These 
changes are not expected to have any impact on the number of license 
applications received by BIS.
    ECCN 9E515. This final rule amends ECCN 9E515 by revising the 
``MT'' paragraph in the table in the License Requirements section to 
add a reference to ECCN 9A515.h to specify the MT control applies to 
technology for items in ECCN 9A515.h (Change to Align with MTCR Annex). 
This addition is to correct an oversight to ensure the MT technology 
control appropriately extends to all the intended MT commodities. The 
technology for ECCN 9A515.h., which has an MT control, should be 
controlled under ECCN 9E515. This correction will align the technology 
control in ECCN 9E515 with 20.A.1.b.2./20.E.1. in the MTCR Annex. These 
changes are not expected to have any impact on the number of license 
applications received by BIS.

B. Changes to License Exception Eligibility for MT-Controlled Items

    This final rule makes changes to the EAR for license exception 
eligibility for MT-controlled items. These changes consist of the 
following: (1) revising the general restriction on the use of license 
exceptions for MT-controlled items in Sec.  740.2(a)(5); (2) revising 
the terms and conditions of four license exceptions: License Exceptions 
TMP under Sec.  740.9(b)(1)(i) and (b)(2)(ii)(C), GOV under Sec.  
740.11 introductory text, TSU under Sec.  740.2(d)(2) to add additional 
requirements or exclusions for items controlled for MT items; and (3) 
adding a new authorization to existing License Exception AVS under 
Sec.  740.15(b)(2), under a new paragraph (b)(2)(ii).
    BIS emphasizes that it is important to understand that although 
this final rule revises the general restriction on the use of license 
exceptions for MT-controlled items to make it more narrowly focused, 
that the majority of EAR license exceptions will still not be available 
because the terms and conditions of those license exceptions do not 
allow for MT-controlled items, e.g., License Exception GBS, which is 
only available to overcome a license requirement for items that are 
only controlled for national security (NS) reasons.
    BIS identifies here the thirteen License Exceptions that are not 
available for items that are MT controlled:
     Sec.  740.3 Shipments of limited value (LVS);
     Sec.  740.4 Shipments to Country Group B countries (GBS);
     Sec.  740.6 Technology and software under restriction 
(TSR);
     Sec.  740.7 Computers (APP);
     Sec.  740.8 Notified Advanced Computing (NAC);
     Sec.  740.12 Gift parcels and humanitarian donations 
(GFT);
     Sec.  740.14 Baggage (BAG);
     Sec.  740.17 Encryption commodities, software, and 
technology (ENC);
     Sec.  740.18 Agricultural commodities (AGR);
     Sec.  740.19 Consumer Communications Devices (CCD);
     Sec.  740.20 License Exception Strategic Trade 
Authorization (STA);
     Sec.  740.21 Support for the Cuban People (SCP); and
     Sec.  740.22 Authorized Cybersecurity Exports (ACE).
    BIS identifies here the six license exceptions, or portions of 
those license exceptions, that are available for items that are MT 
controlled (only the referenced paragraphs will be eligible for MT-
controlled items) for any destination other than destinations 
identified under Country Groups D:4 or D:5 in supplement no. 1 to part 
740:
     Sec.  740.9 Temporary imports, exports, reexports, and 
transfers (in-country) (TMP) for paragraphs (a)(1), (a)(3) through (8) 
and (a)(10), (b)(1) through (b)(3), and Notes 2, 3, and 4 to paragraph 
(b), excluding any commodity controlled under ECCN 9A012 that is 
``capable of'' delivering at least 500 kilograms payload to a range of 
at least 300 kilometers;
     Sec.  740.10 License Exception Servicing and replacement 
of parts and equipment (RPL) for paragraphs (a) and (b);
     Sec.  740.11 Governments, international organizations, 
international inspections under the Chemical Weapons Convention, and 
the International Space Station (GOV) for paragraph (b)(2) (as 
described below under section B.2.ii, this final rule adds a new 
exclusion to the introductory text of License Exception GOV to exclude 
all other paragraphs under this license exception for MT-controlled 
items);
     Sec.  740.13 Technology and software--unrestricted (TSU) 
for paragraphs (a), (b), (c), and (g) (as described below under section 
B.2.iii, this final rule adds a new exclusion to exclude MT controlled 
software from paragraph (d));
     Sec.  740.15 Aircraft, vessels and spacecraft (AVS) for 
paragraphs (b)(1), (b)(2) (including the new authorization this final 
rule adds to paragraph (b)(2)(ii) (as described below under section B.3 
of this final rule)), (b)(3), (b)(4), (c)(1), (c)(2), (e), and (f); and
     Sec.  740.16 Additional permissive reexports (APR) for 
paragraphs (c), (d), (e), and (f).
    BIS provides the two lists of license exceptions above to assist 
with public understanding on the scope and impact of these license 
exception changes in this final rule for MT-controlled items. BIS notes 
here that in order to use any EAR license exception at the time of 
export, reexport, or transfer (in-country), the exporter, reexporter, 
or transferor must review and make a determination that they meet all 
of the applicable requirements of the license exception to be used as 
the authorization and that the export, reexport, or transfer (in-
country) is not otherwise restricted under any of the general 
restrictions under Sec.  740.2.
    These changes for license exception eligibility for MT-controlled 
items described under section B of this final rule are expected to 
result in a reduction of 400 license applications per year received by 
BIS.
1. Revising the General Restriction on the Use of License Exceptions 
for MT-Controlled Items To Allow the Use of Portions of Additional 
License Exceptions
    In Sec.  740.2 Restrictions on all License Exceptions, this final 
rule revises paragraph (a)(5) to make the general restriction on the 
use of license exceptions for MT-controlled items to allow the use of 
portions of additional license exceptions. Prior to this final rule, 
this provision restricted the use of all EAR license exceptions for MT-
controlled items, except for the limited number of ECCNs identified in 
paragraphs (a)(5)(i) and (ii) for the specified license exceptions or 
portions of those license exceptions (i.e., when MT-controlled items 
identified in paragraph (a)(5)(i) are exported as part of a spacecraft, 
manned aircraft, land vehicle or marine vehicle or in quantities 
appropriate for replacement parts for such applications under Sec.  
740.9(a)(4) (License Exception TMP for kits consisting of replacement 
parts), Sec.  740.10 (License Exception RPL), Sec.  740.13 (License 
Exception TSU), or Sec.  740.15(b) (License Exception AVS for

[[Page 85490]]

equipment and spare parts for permanent use on a vessel, aircraft or 
spacecraft; or for ECCNs 2A001 or 2A101 identified in paragraph 
(a)(5)(ii) are exported under Sec.  740.9(a)(4) (License Exception TMP) 
or Sec.  740.10 (License Exception RPL) as one-for-one replacement for 
equipment previously legally exported, reexported, or transferred (in-
country)).
    The restriction under paragraph (a)(5) was originally included in 
the EAR to reflect a statutory restriction in the Export Administration 
Act of 1979 (EAA), which was repealed in 2018. The limited license 
exceptions previously available were in accordance with provisions of 
the MTCR Annex that stipulate that controls do not extend to certain 
items for use in manned aircraft or other non-missile applications. The 
restriction under paragraph (a)(5) had some effects that are 
inconsistent with current national security and foreign policy 
interests. For example, the export of an MT-controlled item to the U.S. 
Department of Defense for its own use, prior to this final rule, would 
have required the submission of a BIS license application. BIS is also 
aware that other MTCR member countries, as permissible under their own 
national discretion in implementing their MTCR commitments, allow in 
certain cases for the use of authorizations for certain MT Annex items 
that would be equivalent to EAR license exceptions, e.g., for trade of 
MTCR Annex items from the EU or UK to certain other countries, 
including the United States.
    This restriction on the use of license exceptions for MT-controlled 
items was not included in ECRA. Because there is no longer a statutory 
restriction and for policy reasons such a general restriction is no 
longer warranted (e.g., some of the examples referenced in the 
preceding paragraph of instances in which license exception eligibility 
for MT items would advance U.S. national security and foreign policy 
interests), this final rule revises the general restriction on the use 
of license exceptions for MT-controlled items to allow the use of 
portions of additional license exceptions. This change will better 
harmonize the availability of license exceptions for MT-controlled 
items under the EAR with those available for other EAR items of similar 
sensitivity and advance U.S. national security and foreign policy 
interests. BIS considered completely removing the general restriction, 
but took into account that exporters, reexporters, and transferors were 
already familiar with the general restriction placement in the EAR and 
that because many license exceptions, based on the other terms and 
conditions of those license exceptions would not be eligible for MT-
controlled items regardless of whether there was a general restriction, 
BIS determined it would be easier to identify an exhaustive, positive 
list of license exceptions and portions of license exceptions that will 
be available under the EAR for MT-controlled items to overcome the 
general restriction instead of making exporter, reexporters, and 
transferors review the terms and conditions of each of the EAR license 
exceptions to make those determinations.
    The revision of the general restriction on the use of license 
exceptions results in only limited availability of additional license 
exceptions for MT-controlled items, as specified above under section B 
introductory text.
    In order to implement this change, this final rule revises Sec.  
740.2(a)(5)(i) to specify no license exceptions may be used for MT-
controlled items and then specifies under new paragraphs (a)(5)(i)(A) 
through (G) the license exceptions or other license exceptions that 
will be available for MT-controlled items to destinations other than 
those identified in Country Groups D:4 or D:5 (see supplement no. 1 to 
part 740 of the EAR). The purpose of this revision is to limit the 
expanded license exception eligibility this rule adds to only those 
destinations that are not of concern for missile technology reasons 
specified under Country Group D:4 and not subject to a U.S. arms 
embargo. This final rule will retain the status quo on the license 
exception restrictions on destinations identified under Country Groups 
D:4 or D:5. However, to ensure that the very limited license exception 
eligibility under Sec.  740.2(a)(5)(i) and (ii) that previously was 
available for all destinations, including those identified under 
Country Group D:4 or D:5, provided the license exception was not 
excluded under the respective license exceptions under part 740 or the 
respective embargoes or sanctions sections under part 746, this final 
rule revises paragraph (a)(5)(ii) to specify that the ECCNs identified 
under paragraphs (a)(5)(i) and (ii) prior to this final rule are still 
available for destinations identified in Country Groups D:4 or D:5, 
provided the terms and conditions in parts 740 and 746 as applicable 
are met and none of the part 744 end-use and end-user controls are 
applicable.
2. Revising the Terms and Conditions of Three License Exceptions To 
Account for the New Eligibility of MT-Controlled Items
i. License Exception TMP
    In Sec.  740.9(a) Temporary imports, exports, reexports, and 
transfers (in-country) (TMP), this final rule revises the introductory 
text of paragraphs (a) and (b) to specify that these two paragraphs do 
not authorize any export, reexport, or transfer (in-country) of a 
commodity controlled under ECCN 9A012 that is ``capable of'' delivering 
at least 500 kilograms payload to a range of at least 300 kilometers. 
This final rule revises the first sentence of paragraph (a)(1), which 
authorizes exports or certain tools of trade to specify MT controlled 
commodities or software are not eligible for Country Groups D:4 and 
D:5, which is also addressed under the restriction this rule adds to 
Sec.  740.2(a)(5)(ii), but as an additional reminder this rule includes 
the additional restriction. This final rule under paragraph (b)(1), 
which authorizes the export of certain items moving in transit through 
the United States, adds an exclusion for items controlled for MT 
reasons when the export is to a Country Group D:4 country in supplement 
no. 1 to part 740. The exclusion under paragraph (b)(1)(i) had already 
applied to national security (NS) reasons, nuclear proliferation (NP) 
reasons, and chemical and biological weapons (CB) when the export was 
to a country of concern for NS, NP, or CB under Country Groups D:1, 
D:2, or D:3, respectively. Because MT-controlled items under the 
changes in this final rule are now eligible for this paragraph (b)(1) 
authorization, the same type of exclusion under paragraph (b)(1)(i) is 
needed for items controlled for MT reasons when the export is to a 
destination of concern for missile technology, destinations under 
Country Group D:4.
    This final rule also revises paragraph (b)(2) (Items imported for 
marketing, or for display at U.S. exhibitions or trade fair), to revise 
the exclusion under paragraph (b)(2)(ii)(C), to add the same type of 
exclusion that this final rule adds to paragraph (b)(1)(i), for items 
controlled for MT reasons to not be allowed to be exported under this 
paragraph (b)(2)(ii)(C) authorization when the export is to a 
destination in Country Group D:4.
ii. License Exception GOV
    In Sec.  740.11 Governments, international organizations, 
international inspections under the Chemical Weapons Convention, and 
the

[[Page 85491]]

International Space Station (GOV), this final rule adds one sentence at 
the end of the introductory text of the section to specify that for 
items controlled for MT reasons that they are only eligible for 
transactions described in paragraphs (b)(2) (United States Government) 
of this section. No other authorizing paragraphs under License 
Exception GOV will be eligible for items controlled for MT reasons.
iii. License Exception TSU
    In Sec.  740.13 Technology and software--unrestricted (TSU), this 
final rule revises paragraph (d) (General Software Note: mass market 
software) by adding one sentence to the end of the exclusions under 
paragraph (d)(2) to specify that the paragraph (d) authorization is not 
available for any software that is controlled for missile technology 
(MT) reasons. Because of the terms that must be met in order to use 
Sec.  740.13(d) prior to this final rule, it is unlikely that software 
controlled for MT reasons would be eligible for this authorization, but 
to make it explicit that software controlled for MT reasons is not 
eligible under paragraph (d) under any case, this final rule specifies 
that in the paragraph (d)(2) exclusions.
3. Adding a New Authorization to Existing License Exception AVS for 
ECCNs 7A101, 7A102, and 7A103
    In Sec.  740.15 Aircraft, vessels and spacecraft (AVS), this final 
rule revises paragraph (b)(2) (Aircraft) to redesignate the existing 
paragraph (b)(2) authorization text as new paragraph (b)(2)(i), 
including adding the term transferred (in-country) for clarity. This 
final rule also adds a new paragraph (b)(2)(ii) that will authorize 
exports, reexports, and transfers (in-country) to any destination 
identified in Country Group A:2 and supplement no. 3 to part 746 of 
ECCNs 7A101, 7A102, or 7A103 when the commodities are for use in or for 
the ``production'' of civil manned aircraft. For commodities controlled 
for MT reasons, these three ECCNs are the subject of some of the most 
common license applications that BIS reviews and the specific end uses 
involving the use of these commodities in civil manned aircraft and for 
the ``production'' of civil manned aircraft are the most common end 
uses specified in these licenses. Provided these licenses do not 
involve a part 744 prohibited end use or end user concern or a 
destination of missile technology concern identified under Country 
Group D:4 or subject to a U.S. arms embargo identified under Country 
Group D:5, these types of license applications are regularly approved. 
Accordingly, creation of a license exception authorization under new 
paragraph (b)(2)(ii) to authorize these exports, reexports, and 
transfers (in-country), provided the terms and conditions of the 
authorization are met and the general restrictions under Sec.  740.2 
are not otherwise applicable, is warranted. As an additional safeguard, 
this final rule limits the country scope of this new authorization to 
only destinations that are identified in Country Group A:2 and 
supplement no. 3 to part 746.

Savings Clause

    For the changes being made in this final rule, shipments of items 
removed from eligibility for a License Exception or export, reexport, 
or transfer (in-country) without a license (NLR) as a result of this 
regulatory action that were en route aboard a carrier to a port of 
export, reexport, or transfer (in-country), on December 8, 2023, 
pursuant to actual orders for export, reexport, or transfer (in-
country) to or within a foreign destination, may proceed to that 
destination under the previous eligibility for a License Exception or 
export, reexport, or transfer (in-country) without a license (NLR), 
provided the export, reexport, or transfer (in-country) is completed no 
later than on January 8, 2024.

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (codified, as 
amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for 
BIS's principal authorities and serves as the authority under which BIS 
issues this rule. To the extent it applies to certain activities that 
are the subject of this rule, the Trade Sanctions Reform and Export 
Enhancement Act of 2000 (TSRA) (codified, as amended, at 22 U.S.C. 
7201-7211) also serves as authority for this rule.

Rulemaking Requirements

    1. BIS has examined the impact of this rule as required by 
Executive Orders 12866, 13563, and 14094, which 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, distributive impacts, and equity). 
This rule is considered a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number.
    This rule involves the following OMB-approved collections of 
information subject to the PRA:
     0694-0088, ``Multi-Purpose Application,'' which carries a 
burden hour estimate of 29.4 minutes for a manual or electronic 
submission;
     0694-0096 ``Five Year Records Retention Period,'' which 
carries a burden hour estimate of less than 1 minute;
     0694-0122, ``Licensing Responsibilities and Enforcement;'' 
and
     0607-0152 ``Automated Export System (AES) Program,'' which 
carries a burden hour estimate of 3 minutes per electronic submission.
    BIS expects the burden hours associated with these collection to 
decease slightly by 221 hours for an estimated cost decrease of $7,735, 
which is within the estimated burdens and costs of these collections. 
Additional information regarding these collections of information--
including all background materials--can be found at https://www.reginfo.gov/public/do/PRAMain by using the search function to enter 
either the title of the collection or the OMB Control Number.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of ECRA (50 U.S.C. 4821), this action 
is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requirements for notice of proposed rulemaking, opportunity for public 
participation, and delay in effective date. While section 1762 of ECRA 
provides sufficient authority for such an exemption, this action is 
also independently exempt from these APA requirements because it 
involves a military or foreign affairs function of the United States (5 
U.S.C. 553(a)(1)).
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required, and none 
has been prepared.

[[Page 85492]]

List of Subjects

15 CFR Part 740

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

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

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

PART 740--LICENSE EXCEPTIONS

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

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

0
2. Section 740.2 is amended by revising paragraph (a)(5), to read as 
follows:

Sec.  740.2  Restrictions on all License Exceptions.

    (a) * * *
    (5)(i) The item is controlled for missile technology (MT) reasons. 
Only the following license exceptions may be used to export MT-
controlled items to destinations other than those identified in Country 
Groups D:4 or D:5 (see supplement no. 1 to part 740 of the EAR):
    (A) License Exception TMP (Sec.  740.9(a)(1), (a)(3) through (8), 
and (a)(10), (b)(1) through (b)(3), and Notes 2, 3, and 4 to paragraph 
(b) of the EAR);
    (B) License Exception RPL (Sec.  740.10 of the EAR);
    (C) License Exception GOV (Sec.  740.11(b)(2) of the EAR);
    (D) License Exception TSU (Sec.  740.13(a) through (c), and (g) of 
the EAR);
    (E) License Exception AVS (Sec.  740.15(b)(1) through (b)(4), 
(c)(1), (2), (e), and (f) of the EAR); and
    (F) License Exception APR for (Sec.  740.16(c) through (f) of the 
EAR).
    (ii) The item is controlled for missile technology (MT) reasons. 
Only the following license exceptions may be used to export MT-
controlled items described in paragraphs (a)(5)(ii)(A) and (B) of this 
section to destinations identified in Country Groups D:4 or D:5 (see 
supplement no. 1 to part 740 of the EAR), provided the terms and 
conditions in parts 740 and 746 as applicable are met:
    (A) MT-controlled items described in ECCNs 6A008, 7A001, 7A002, 
7A004, 7A101, 7A102, 7A103, 7A104, 7A105, 7B001, 7D001, 7D002, 7D003, 
7D101, 7D102, 7E003, 7E101 or 9A515, may be exported, reexported, or 
transferred (in-country) as part of a spacecraft, manned aircraft, land 
vehicle or marine vehicle or in quantities appropriate for replacement 
parts for such applications under Sec.  740.9(a)(4) (License Exception 
TMP for kits consisting of replacement parts), Sec.  740.10 (License 
Exception RPL), Sec.  740.13 (License Exception TSU), or Sec.  
740.15(b) (License Exception AVS for equipment and spare parts for 
permanent use on a vessel, aircraft or spacecraft, excluding paragraph 
(b)(2)(ii)), and
    (B) MT-controlled commodities described in ECCNs 2A001 or 2A101 may 
be exported, reexported, or transferred (in-country) under Sec.  
740.9(a)(4) (License Exception TMP) or Sec.  740.10 (License Exception 
RPL) as one-for-one replacement for equipment previously legally 
exported, reexported, or transferred (in-country).

0
3. Section 740.9 is amended by:
0
a. Adding a sentence at the end of paragraph (a) introductory text;
0
b. Revising the first sentence of paragraph (a)(1);
0
c. Adding a sentence at the end of paragraph (b) introductory text; and
0
d. Revising paragraphs (b)(1)(i) and (b)(2)(ii)(C).
    The additions and revisions read as follows:

Sec.  740.9  Temporary imports, exports, reexports, and transfers (in-
country) (TMP).

* * * * *
    (a) * * * This paragraph (a) does not authorize any export, 
reexport, or transfer (in-country) of a commodity controlled under ECCN 
9A012 that is ``capable of'' delivering at least 500 kilograms payload 
to a range of at least 300 kilometers.
    (1) * * * Exports, reexports, or transfers (in-country) of 
commodities and software as tools of trade for use by the exporter or 
employees of the exporter may be made only to destinations other than 
Country Group E:1 and for MT controlled commodities or software may be 
made only to destinations other than Country Groups D:4 and D:5. * * *
* * * * *
    (b) * * * This paragraph (b) does not authorize any export, 
reexport, or transfer (in-country) of a commodity controlled under ECCN 
9A012 that is ``capable of'' delivering at least 500 kilograms payload 
to a range of at least 300 kilometers.
    (1) * * *
    (i) Items controlled for national security (NS) reasons, nuclear 
proliferation (NP) reasons, chemical and biological weapons (CB), or 
missile technology reasons (MT) reasons may not be exported to Country 
Group D:1, D:2, D:3, or D:4 (see supplement no. 1 to part 740), 
respectively, under this paragraph (b)(1).
* * * * *
    (2) * * *
    (ii) * * *
    (C) Exports to Country Groups D:1, D:2, D:3, or D:4 (see supplement 
no. 1 to part 740) of items controlled for national security (NS) 
reasons, nuclear nonproliferation (NP) reasons, chemical and biological 
weapons (CB) reasons, or missile technology (MT) reasons, respectively.
* * * * *

0
4. Section 740.11 is amended by adding one sentence to the end of the 
introductory text to read as follows:

Sec.  740.11  Governments, international organizations, international 
inspections under the Chemical Weapons Convention, and the 
International Space Station (GOV).

    * * * Items controlled for missile technology (MT) reasons are 
eligible only for transactions described in paragraphs (b)(2) of this 
section.
* * * * *

0
5. Section 740.13 is amended by adding a sentence at the end of 
paragraph (d)(2), to read as follows:

Sec.  740.13  Technology and software--unrestricted (TSU).

* * * * *
    (d) * * *
    (2) * * * The provisions of this paragraph (d) are also not 
available for any software that is controlled for missile technology 
(MT) reasons.
* * * * *

0
6. Section 740.15 is amended by revising paragraph (b)(2), to read as 
follows:

Sec.  740.15  Aircraft, vessels and spacecraft (AVS).

* * * * *
    (b) * * *
    (2) Aircraft. (i) Equipment and spare parts, for permanent use on 
an aircraft, when necessary for the proper operation of such aircraft, 
may be exported or reexported for use on board an aircraft of any 
registry, except an aircraft registered in, owned or controlled by, or 
under charter or lease to a country included in Country Group D:1, 
Cuba, or a national of any of these countries.
    (ii) This paragraph (b)(2)(ii) authorizes exports, reexports, and 
transfers (in-country) to any country that is identified in Country 
Group A:2 and supplement no. 3 to part 746 of ECCNs

[[Page 85493]]

7A101 through 7A103 when the commodities are for use in or for the 
``production'' of civil manned aircraft.
* * * * *

PART 774--THE COMMERCE CONTROL LIST

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

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(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. 1824; 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.

0
8. Supplement no. 1 to part 774 is amended by revising ECCNs 1C111, 
2A101, 2B119, 6A107, 9A101, and 9E515, to read as follows:

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

* * * * *
1C111 Propellants and constituent chemicals for propellants, other 
than those specified in 1C011, as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: MT, NP, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
MT applies to entire entry................  MT Column 1.
NP applies to 1C111.a.3.f only............  NP Column 1.
RS applies to 1C111.d.3 only..............  RS Column 1.
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: (1) See USML Category V(e)(7) for controls on HTPB 
(hydroxyl terminated polybutadiene) with a hydroxyl functionality 
equal to or greater than 2.2 and less than or equal to 2.4, a 
hydroxyl value of less than 0.77 meq/g, and a viscosity at 30 [deg]C 
of less than 47 poise (CAS #69102-90-5). (2) See USML Category V for 
controls on ferrocene derivatives, including butacene. (3) See ECCN 
1C608 for controls on oxidizers that are composed of fluorine and 
also other halogens, oxygen, or nitrogen, except for chlorine 
trifluoride, which is controlled under this ECCN 1C111.a.3.f. (4) 
See ECCN 1C011.b for controls on boron and boron alloys not 
controlled under this ECCN 1C111.a.2.b. (5) See USML Category V for 
controls on Inhibited Red Fuming Nitric Acid (IRFNA) (CAS 8007-58-
7).
Related Definitions: Particle size is the mean particle diameter on 
a weight or volume basis. Best industrial practices must be used in 
sampling, and in determining particle size, and the controls may not 
be undermined by the addition of larger or smaller sized material to 
shift the mean diameter.
Items:

    a. Propulsive substances:
    a.1. Spherical or spheroidal aluminum powder (C.A.S. 7429-90-5) 
in particle size of less than 200 x 10-6 m (200 [micro]m) 
and an aluminum content of 97% by weight or more, if at least 10% of 
the total weight is made up of particles of less than 63 [micro]m, 
according to ISO 2591-1:1988 or national equivalents.
    Technical Note: A particle size of 63 [micro]m (ISO R-565) 
corresponds to 250 mesh (Tyler) or 230 mesh (ASTM standard E-11).
    a.2. Metal powders and alloys where at least 90% of the total 
particles by particle volume or weight are made up of particles of 
less than 60 [micro] (determined by measurement techniques such as 
using a sieve, laser diffraction or optical scanning), whether 
spherical, atomized, spheroidal, flaked or ground, as follows:
    a.2.a. Consisting of 97% by weight or more of any of the 
following:
    a.2.a.1. Zirconium (C.A.S. #7440-67-7);
    a.2.a.2. Beryllium (C.A.S. #7440-41-7); or
    a.2.a.3. Magnesium (C.A.S. #7439-95-4);
    a.2.b. Boron or boron alloys with a boron content of 85% or more 
by weight.
    Technical Note: The natural content of hafnium in the zirconium 
(typically 2% to 7%) is counted with the zirconium.
    Note: In a multimodal particle distribution (e.g., mixtures of 
different grain sizes) in which one or more modes are controlled, 
the entire powder mixture is controlled.
    a.3. Oxidizer substances usable in liquid propellant rocket 
engines, as follows:
    a.3.a. Dinitrogen trioxide (CAS 10544-73-7);
    a.3.b. Nitrogen dioxide (CAS 10102-44-0)/dinitrogen tetroxide 
(CAS 10544-72-6);
    a.3.c. Dinitrogen pentoxide (CAS 10102-03-1);
    a.3.d. Mixed oxides of nitrogen (MON);
    a.3.e. [Reserved];
    a.3.f. Chlorine trifluoride (ClF3).
    Technical Note: Mixed oxides of nitrogen (MON) are solutions of 
nitric oxide (NO) in dinitrogen tetroxide/nitrogen dioxide (N2O4/
NO2) that can be used in missile systems. There are a range of 
compositions that can be denoted as MONi or MONij, where i and j are 
integers representing the percentage of nitric oxide in the mixture 
(e.g., MON3 contains 3% nitric oxide, MON25 25% nitric oxide. An 
upper limit is MON40, 40% by weight).
    b. Polymeric substances:
    b.1. Carboxy-terminated polybutadiene (including carboxyl-
terminated polybutadiene) (CTPB);
    b.2. Hydroxy-terminated polybutadiene (including hydroxyl-
terminated polybutadiene) (HTPB) (CAS 69102-90-5), except for 
hydroxyl-terminated polybutadiene as specified in USML Category V 
(see 22 CFR 121.1) (also see Related Controls Note #1 for this 
ECCN);
    b.3. Polybutadiene acrylic acid (PBAA);
    b.4. Polybutadiene acrylic acid acrylonitrile (PBAN) (CAS 25265-
19-4/CAS 68891-50-9);
    b.5. Polytetrahydrofuran polyethylene glycol (TPEG).
    Technical Note: Polytetrahydrofuran polyethylene glycol (TPEG) 
is a block copolymer of poly 1,4-Butanediol (CAS 110-63-4) and 
polyethylene glycol (PEG) (CAS 25322-68-3).
    c. Other propellant energetic materials, additives, or agents:
    c.1. [Reserved]
    c.2. Triethylene glycol dinitrate (TEGDN);
    c.3. 2 Nitrodiphenylamine (2-NDPA);
    c.4. Trimethylolethane trinitrate (TMETN);
    c.5. Diethylene glycol dinitrate (DEGDN).
    d. Hydrazine and derivatives as follows:
    d.1. Hydrazine (C.A.S. #302-01-2) in concentrations of 70% or 
more;
    d.2. Monomethyl hydrazine (MMH) (C.A.S. #60-34-4);
    d.3. Symmetrical dimethyl hydrazine (SDMH) (C.A.S. #540-73-8);
    d.4. Unsymmetrical dimethyl hydrazine (UDMH) (C.A.S. #57-14-7);
    d.5. Trimethylhydrazine (C.A.S. #1741-01-1);
    d.6. Tetramethylhydrazine (C.A.S. #6415-12-9);
    d.7. N,N diallylhydrazine (CAS 5164-11-4);
    d.8. Allylhydrazine (C.A.S. #7422-78-8);
    d.9. Ethylene dihydrazine (CAS 6068-98-0);
    d.10. Monomethylhydrazine dinitrate;
    d.11. Unsymmetrical dimethylhydrazine nitrate;
    d.12. 1,1-Dimethylhydrazinium azide (CAS 227955-52-4)/1,2-
Dimethylhydrazinium azide (CAS 299177-50-7);
    d.13. Hydrazinium azide (C.A.S. #14546-44-2);
    d.14. Hydrazinium dinitrate (CAS 13464-98-7);
    d.15. Diimido oxalic acid dihydrazine (C.A.S. #3457-37-2);
    d.16. 2-hydroxyethylhydrazine nitrate (HEHN);
    d.17. Hydrazinium diperchlorate (C.A.S. #13812-39-0);
    d.18. Methylhydrazine nitrate (MHN) (CAS 29674-96-2);
    d.19. 1,1-Diethylhydrazine nitrate (DEHN)/1,2-Diethylhydrazine 
nitrate (DEHN) (CAS 363453-17-2);
    d.20. 3,6-dihydrazino tetrazine nitrate (DHTN), also referred to 
as 1,4-dihydrazine nitrate.
    e. Hydrazine replacement fuels as follows:
    e.1. 2-Dimethylaminoethylazide (DMAZ) (CAS 86147-04-8);
    e.2. [Reserved]
* * * * *
2A101 Radial Ball Bearings Having all Tolerances Specified in 
Accordance With ISO 492 Tolerance Class 2 (or ANSI/ABMA Std 20 
Tolerance Class ABEC-9 or Other National Equivalents), or Better and 
Having all of the Following Characteristics (see List of Items 
Controlled).

License Requirements

Reason for Control: MT, AT

[[Page 85494]]

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

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: See ECCN 2A001.
Related Definitions: N/A
Items:

    a. An inner ring bore diameter between 12 and 50 mm;
    b. An outer ring outside diameter between 25 and 100 mm; and
    c. A width between 10 and 20 mm.
* * * * *
2B119 Balancing machines and related equipment, as follows (see List 
of Items Controlled).

License Requirements

Reason for Control: MT, AT

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

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: See also 7B101.
Related Definitions: N/A
Items:

    a. Balancing machines having all of the following 
characteristics:
    a.1. Not capable of balancing rotors/assemblies having a mass 
greater than 3 kg;
    a.2. Capable of balancing rotors/assemblies at speeds greater 
than 12,500 rpm;
    a.3. Capable of correcting unbalance in two planes or more; and
    a.4. Capable of balancing to a residual specific unbalance of 
0.2 g mm per kg of rotor mass.
    Note: 2B119.a. does not control balancing machines designed or 
modified for dental or other medical equipment.
    b. Indicator heads designed or modified for use with machines 
specified in 2B119.a.
    Note: Indicator heads are sometimes known as balancing 
instrumentation.
* * * * *
6A107 Gravity meters (gravimeters) or gravity gradiometers, other 
than those controlled by 6A007, designed or modified for airborne or 
marine use, as follows, (see List of Items Controlled) and 
``specially designed'' ``parts'' and ``components'' therefor.

License Requirements

Reason for Control: MT, AT

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

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: See USML Category XII(d) for certain gravity 
meters (gravimeters) or gravity gradiometers subject to the ITAR. 
See also ECCN 7A611.
Related Definitions: `Time to steady-state registration' (also 
referred to as the gravity meter's response time) is the time over 
which the disturbing effects of platform-induced acceleration (high 
frequency noise) are reduced.
Items:

    a. Gravity meters having all of the following characteristics:
    a.1. A static or operational accuracy equal to or less (better) 
than 0.7 milligal (mgal); and
    a.2. A `time to steady-state registration' of two minutes or 
less.
    b. Gravity gradiometers
* * * * *
9A101 Turbojet and turbofan engines, other than those controlled by 
9A001, as follows (see List of Items Controlled).

License Requirements

Reason for Control: MT, AT

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

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A

List of Items Controlled

Related Controls: 9A101.b controls only engines for non-military 
unmanned aerial vehicles [UAVs] or remotely piloted vehicles [RPVs], 
and does not control other engines designed or modified for use in 
``missiles'', which are ``subject to the ITAR'' (see 22 CFR parts 
120 through 130).
Related Definitions: N/A
Items:

    a. Engines having all of the following characteristics:
    a.1. `Maximum thrust value' greater than 400 N (achieved un-
installed) excluding civil certified engines with a maximum thrust 
value greater than 8,890 N (achieved un-installed);
    a.2. Specific fuel consumption of 0.15 kg N-1 
h-1 or less;
    a.3. `Dry weight' less than 750 kg; and
    a.4. `First-stage rotor diameter' less than 1 m; or
    Technical Notes:
    1. `Maximum thrust value' in 9A101.a.1 is the manufacturer's 
demonstrated maximum thrust for the engine type un-installed at sea 
level static conditions using the ICAO standard atmosphere. The 
civil type certified thrust value will be equal to or less than the 
manufacturer's demonstrated maximum thrust for the engine type.
    2. Specific fuel consumption is determined at maximum continuous 
thrust for engine type un-installed at sea level static conditions 
using the ICAO standard atmosphere.
    3. `Dry weight' is the weight of the engine without fluids 
(fuel, hydraulic fluid, oil, etc.) and does not include the nacelle 
(housing).
    4. `First-stage rotor diameter' is the diameter of the first 
rotating stage of the engine, whether a fan or compressor, measured 
at the leading edge of the blade tips.
    b. Engines designed or modified for use in ``missiles'' or UAVs 
with a range equal to or greater than 300 km, regardless of thrust, 
specific fuel consumption, `dry weight' or `first-stage rotor 
diameter'.
* * * * *
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

Reason for Control: NS, MT, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         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, 9A515.h, and 9B515.a
 controlled for MT reasons.
RS applies to entire entry except 9E515.y.  RS Column 1.
RS applies to 9E515.y, except to Russia     China, Russia, or Venezuela
 for use in, with, or for the                (see Sec.   742.6(a)(7)).
 International Space Station (ISS),
 including launch to the ISS.
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)(9), which specifies that such 
``technology'' is subject to a worldwide license requirement.

[[Page 85495]]

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A

Special Conditions for STA

STA: (1) Paragraph (c)(1) of License Exception STA (Sec.  
740.20(c)(1) of the EAR) may not be used for 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). 
(2) Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) of 
the EAR) may not be used for any ``technology'' in 9E515.

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.
Related Definitions: N/A
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.
    b. ``Technology'' ``required'' for the ``development,'' 
``production,'' failure analysis or anomaly resolution of software 
controlled by ECCN 9D515.b.
    c. [Reserved]
    d. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.d.
    e. ``Technology'' ``required'' for the ``development,'' 
``production,'' failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.e.
    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.
    g. through x. [Reserved]
    y. Specific ``technology'' ``required'' for the ``production,'' 
``development,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities or software enumerated in 
ECCN 9A515.y or 9D515.y.
    Note 1: [Reserved]
    Note 2: Activities and technology/technical data directly 
related to or required for the spaceflight (e.g., sub-orbital, 
orbital, lunar, interplanetary, or otherwise beyond Earth orbit) 
passenger or participant experience, regardless of whether the 
passenger or participant experience is for space tourism, scientific 
or commercial research, commercial manufacturing/production 
activities, educational, media, or commercial transportation 
purposes, are not subject to the ITAR or the EAR. Such activities 
and technology/technical data include those directly related to or 
required for:
    (i) ``Spacecraft'' access, ingress, and egress, including the 
operation of all ``spacecraft'' doors, hatches, and airlocks;
    (ii) Physiological training (e.g., human-rated centrifuge 
training or parabolic flights, pressure suit or spacesuit training/
operation);
    (iii) Medical evaluation or assessment of the spaceflight 
passenger or participant;
    (iv) Training for and operation by the passenger or participant 
of health and safety related hardware (e.g., seating, environmental 
control and life support, hygiene facilities, food preparation, 
exercise equipment, fire suppression, communications equipment, 
safety-related clothing or headgear) or emergency procedures;
    (v) Viewing of the interior and exterior of the spacecraft or 
terrestrial mock-ups;
    (vi) Observing ``spacecraft'' operations (e.g., pre-flight 
checks, landing, in-flight status);
    (vii) Training in ``spacecraft'' or terrestrial mock-ups for 
connecting to or operating passenger or participant equipment used 
for purposes other than operating the ``spacecraft''; or
    (viii) Donning, wearing or utilizing the passenger's or 
participant's flight suit, pressure suit or spacesuit, and personal 
equipment.
* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-26682 Filed 12-7-23; 8:45 am]
BILLING CODE 3510-33-P