Document ID: BIS-2019-0031-0001
Agency: bis
Document Type: Rule
Title: Addition of Software Specially Designed to Automate the Analysis of Geospatial Imagery to the Export Control Classification Number 0Y521 Series
Posted Date: 2020-01-06T05:00Z

[Federal Register Volume 85, Number 3 (Monday, January 6, 2020)]
[Rules and Regulations]
[Pages 459-462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27649]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 191217-0116]
RIN 0694-AH89

Addition of Software Specially Designed To Automate the Analysis 
of Geospatial Imagery to the Export Control Classification Number 0Y521 
Series

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule with request for comments.

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SUMMARY: In this interim final rule, the Bureau of Industry and 
Security (BIS) amends the Export Administration Regulations (EAR) to 
make certain items subject to the EAR and to impose a license 
requirement for the export and reexport of those items to all 
destinations, except Canada. Specifically, this rule classifies 
software specially designed to automate the analysis of geospatial 
imagery, as

[[Page 460]]

specified, under the Export Control Classification Number (ECCN) 0Y521 
series, specifically under ECCN 0D521. BIS adds this item to the 0Y521 
series of ECCNs upon a determination by the Department of Commerce, 
with the concurrence of the Departments of Defense and State, and other 
agencies as appropriate, that the items warrant control for export 
because the items may provide a significant military or intelligence 
advantage to the United States or because foreign policy reasons 
justify control, pursuant to the ECCN 0Y521 series procedures.

DATES: This rule is effective January 6, 2020. Comments must be 
received by March 6, 2020.

ADDRESSES: You may submit comments by any of the following methods:
     Federal rulemaking portal: http://www.regulations.gov. The 
regulations.gov ID number for this rule is BIS-2019-0031. All comments 
(including any personally identifying information) will be made 
available for public inspection and copying.
     Address: By mail or delivery to Regulatory Policy 
Division, Bureau of Industry and Security, U.S. Department of Commerce, 
Room 2099B, 14th Street and Pennsylvania Avenue NW, Washington, DC 
20230. Refer to RIN 0694-AH89.

FOR FURTHER INFORMATION CONTACT: Aaron Amundson, Director, Information 
Technology Division, Office of National Security and Technology 
Transfer Controls, at email Aaron.Amundson@bis.doc.gov or by phone at 
(202) 482-5299.

SUPPLEMENTARY INFORMATION:

Background

The 0Y521 Series

    The 0Y521 series of ECCNs was established in April 2012 (77 FR 
22191, April 13, 2012). Items in the 0Y521 series, which includes ECCNs 
0A521, 0B521, 0C521, 0D521, and 0E521, are described in Supplement No. 
5 to part 774 of the Export Administration Regulations (EAR). Items in 
the 0Y521 series of ECCNs are added upon a determination by the 
Department of Commerce, with the concurrence of the Departments of 
Defense and State, and other agencies as appropriate, that the items 
warrant control for export because the items may provide a significant 
military or intelligence advantage to the United States or because 
foreign policy reasons justify control. Pursuant to Sec.  742.6(a)(7) 
of the EAR, the 0Y521 series is a temporary holding classification that 
only lasts for one year from the date a final rule is published in the 
Federal Register listing the item in Supplement No. 5 to part 774, 
unless the 0Y521 classification is extended in accordance with 
described procedures, and provided that the U.S. Government submit a 
proposal to the relevant multilateral regime(s) to obtain multilateral 
controls over the item. Before the 0Y521 classification expires, an 
0Y521 item may be reclassified and moved under a different ECCN on the 
Commerce Control List (CCL), if appropriate. If the item has not been 
moved to a more permanent ECCN and the 0Y521 classification expires, 
the item is designated EAR99. ``EAR99'' means that an item is subject 
to the EAR but not specified on the CCL.
    Items classified under the 0Y521 series are controlled for regional 
stability (RS) Column 1 reasons, with a case-by-case license 
application review policy. The only license exception available for 
these items at this time is for exports, reexports, and transfers (in-
country) made by or consigned to a department or agency of the U.S. 
Government (License Exception GOV), specifically within the scope of 
Sec.  740.11(b)(2)(ii) of the EAR. This limitation is further described 
in Sec.  740.2(a)(14) of the EAR.

Addition of Software Specially Designed To Automate the Analysis of 
Geospatial Imagery Under the 0Y521 Series in This Rule

    In this interim final rule, the Bureau of Industry and Security 
(BIS) amends the EAR to classify certain items subject to the EAR under 
the 0Y521 series and to impose a license requirement for the export and 
reexport of those items to all destinations, except Canada, for RS 
Column 1 reasons. Specifically, the items that will be subject to these 
new controls are described under ECCN 0D521 in the 0Y521 series table 
found in Supplement No. 5 to part 774 of the EAR, as follows:

ECCN 0D521 No. 1

    Geospatial imagery ``software'' ``specially designed'' for training 
a Deep Convolutional Neural Network to automate the analysis of 
geospatial imagery and point clouds, and having all of the following:
    1. Provides a graphical user interface that enables the user to 
identify objects (e.g., vehicles, houses, etc.) from within geospatial 
imagery and point clouds in order to extract positive and negative 
samples of an object of interest;
    2. Reduces pixel variation by performing scale, color, and 
rotational normalization on the positive samples;
    3. Trains a Deep Convolutional Neural Network to detect the object 
of interest from the positive and negative samples; and
    4. Identifies objects in geospatial imagery using the trained Deep 
Convolutional Neural Network by matching the rotational pattern from 
the positive samples with the rotational pattern of objects in the 
geospatial imagery.
    Technical Note: A point cloud is a collection of data points 
defined by a given coordinate system. A point cloud is also known as a 
digital surface model.
    Consistent with other 0Y521 series items, license requirements for 
the items described under the first entry for ECCN 0D521 of the 0Y521 
series, appear in Sec.  742.6(a)(7) of the EAR. The U.S. Government 
currently plans to propose to an appropriate multilateral regime, in 
this case the Wassenaar Arrangement, that multilateral controls be 
placed on these items.

License Applications for the New ECCN 0D521 No. 1

    License applications for these items may be submitted through SNAP-
R in accordance with Sec.  748.6 (General instructions for license 
applications) of the EAR. Exporters are directed to include detailed 
descriptions and technical specifications with the license application, 
and to identify the item's ECCN.
    This rule is being issued in interim final form because while the 
government believes that it is in the national security interests of 
the United States to immediately implement these controls, it also 
wants to provide the interested public with an opportunity to comment 
on the control of new items. Comments may be submitted in accordance 
with the DATES and ADDRESSSES sections of this rule. BIS will review 
and, if appropriate, address such comments through rulemaking 
consistent with the process described in the final rule that created 
the ECCN 0Y521 series.

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) (Title XVII, 
Subtitle B of Pub. L. 115-232) that provides the legal basis for BIS's 
principal authorities and serves as the authority under which BIS 
issues this rule. As set forth in Section 1768 of ECRA, all 
delegations, rules, regulations, orders, determinations, licenses, or 
other forms of administrative action that were made, issued, conducted, 
or allowed to become effective under the Export

[[Page 461]]

Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as in effect prior 
to August 13, 2018, and as continued in effect pursuant to the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), 
or the Export Administration Regulations, and were in effect as of 
August 13, 2018, shall continue in effect according to their terms 
until modified, superseded, set aside, or revoked under the authority 
of ECRA.

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, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has not been designated a ``significant 
regulatory action''. This rule is not an Executive Order 13771 
regulatory action because this rule is not significant under Executive 
Order 12866.
    2. Pursuant to Section 1762 of the Export Control Reform Act of 
2018 (Title XVII, Subtitle B of Pub. L. 115- 232), which was included 
in the John S. McCain National Defense Authorization Act for Fiscal 
Year 2019, this action is exempt from the Administrative Procedure Act 
(5 U.S.C. 553) requirements for notice of proposed rulemaking, 
opportunity for public participation and delay in effective date. The 
analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 
et seq.) are not applicable because no general notice of proposed 
rulemaking was required for this action. Accordingly, no regulatory 
flexibility analysis is required, and none has been prepared.
    3. 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 Office 
of Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under the following control 
numbers: 0694-0088 and 0694-0137. This action is not expected to 
materially increase the number of submissions under these collections. 
Any comments regarding these collections of information, including 
suggestions for reducing the burden, may be sent to OMB Desk Officer, 
New Executive Office Building, Washington, DC 20503; and 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.
    4. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.

List of Subjects in 15 CFR Part 774

    Exports, Rexporting and recordkeeping requirements.

    Accordingly, part 774 of the Export Administration Regulations (15 
CFR parts 730 through 774) is amended as follows:

PART 774--[AMENDED]

0
1. The authority citation for part 774 is revised to read as follows:

    Authority: 50 U.S.C. 4801-4582; 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; and as extended by 
the Notice of August 14, 2019, 84 FR 41881 (August 15, 2019).

0
2. Amend Supplement No. 5 to part 774 by removing the reserved entry 
under ``0D521. Software'' and adding in its place entry ``No. 1'' to 
read as follows:

         Supplement No. 5 to Part 774--Items Classified Under ECCNS 0A521, 0B521, 0C521, 0D521 and 0E521
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                                                  * * * * * * *
Item descriptor.                       Date of initial or       Date when the item will  Item-specific license
Note: The description must match by     subsequent BIS           be designated EAR99,     exception eligibility.
 model number or a broader descriptor   classification.          unless reclassified in
 that does not necessarily need to be  (ID = initial date; SD    another ECCN or the
 company specific.                      = subsequent date).      0Y521 classification
                                                                 is reissued.
 
                                                  * * * * * * *
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                                                0D521. Software.
----------------------------------------------------------------------------------------------------------------
No.1 Geospatial imagery ``software''   January 6, 2020 (ID)...  January 6, 2021........  License Exception GOV
 ``specially designed'' for training                                                      under
 a Deep Convolutional Neural Network                                                     Sec.   740.11(b)(2)(ii)
 to automate the analysis of                                                              only.
 geospatial imagery and point clouds,
 and having all of the following:
    1. Provides a graphical user
     interface that enables the user
     to identify objects (e.g.,
     vehicles, houses, etc.) from
     within geospatial imagery and
     point clouds in order to extract
     positive and negative samples of
     an object of interest;
    2. Reduces pixel variation by
     performing scale, color, and
     rotational normalization on the
     positive samples;
    3. Trains a Deep Convolutional
     Neural Network to detect the
     object of interest from the
     positive and negative samples;
     and

[[Page 462]]

 
    4. Identifies objects in
     geospatial imagery using the
     trained Deep Convolutional
     Neural Network by matching the
     rotational pattern from the
     positive samples with the
     rotational pattern of objects in
     the geospatial imagery.
Technical Note: A point cloud is a
 collection of data points defined by
 a given coordinate system. A point
 cloud is also known as a digital
 surface model.
 
                                                  * * * * * * *
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    Dated: December 17, 2019.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2019-27649 Filed 1-3-20; 8:45 am]
BILLING CODE 3510-33-P