Document ID: BIS-2015-0016-0004
Agency: bis
Document Type: Rule
Title: Export Administration Regulations: Control of Fire Control, Laser, Imaging, and Guidance Equipment President Determines No Longer Warrant Control under United States Munitions List
Posted Date: 2016-10-12T04:00Z

[Federal Register Volume 81, Number 197 (Wednesday, October 12, 2016)]
[Rules and Regulations]
[Pages 70320-70339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24220]

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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

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

[Docket No. 140221170-6403-03]
RIN 0694-AF75

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

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

ACTION: Final rule.

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

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

DATES: This rule is effective December 31, 2016.

FOR FURTHER INFORMATION CONTACT: For questions regarding the ECCNs 
included in this rule, contact Dennis Krepp, Office of National 
Security and Technology Transfer Controls, Bureau of Industry and 
Security, Telephone: 202-482-1309, Email:

[[Page 70321]]

Dennis.Krepp@bis.doc.gov. For general questions regarding the 
regulatory changes, contact Steven Emme, Office of the Assistant 
Secretary for Export Administration, Telephone: 202-482-5491, Email: 
Steven.Emme@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    This final rule is part of the Administration's Export Control 
Reform Initiative (the ``Initiative''), the objective of which is to 
protect and enhance U.S. national security interests. The Initiative 
began in August 2009 when President Obama directed the Administration 
to conduct a broad-based review of the U.S. export control system to 
identify additional ways to enhance national security. The Department 
of State's International Traffic in Arms Regulations (ITAR) and its 
U.S. Munitions List (USML) are being amended to control only the items 
that provide the United States with a critical military or intelligence 
advantage or otherwise warrant such controls, and the Export 
Administration Regulations (EAR) are being amended to control military 
items that do not warrant USML controls. These changes will enhance 
national security by (i) improving interoperability of U.S. military 
forces with allied countries, (ii) strengthening the U.S. industrial 
base by, among other things, reducing incentives for foreign 
manufacturers to design out and avoid U.S.-origin content and services, 
and (iii) allowing export control officials to focus government 
resources on transactions that pose greater concern.
    Pursuant to section 38(f) of the Arms Export Control Act (AECA), 
the President is obligated to review the USML ``to determine what 
items, if any, no longer warrant export controls under'' the AECA. The 
President must report the results of the review to Congress and wait 30 
days before removing any such items from the USML. The report must 
``describe the nature of any controls to be imposed on that item under 
any other provision of law.'' 22 U.S.C. 2778(f)(1).
    Following the structure set forth in the final rule entitled 
``Revisions to the Export Administration Regulations: Initial 
Implementation of Export Control Reform'' (78 FR 22660, April 16, 
2013), BIS published a proposed rule entitled ``Revisions to the Export 
Administration Regulations (EAR): Control of Fire Control, Range 
Finder, Optical, and Guidance and Control Equipment the President 
Determines No Longer Warrant Control Under the United States Munitions 
List (USML)'' (80 FR 25798, May 5, 2015) (``May 2015 rule''). That 
proposed rule was published in conjunction with a proposed rule 
published by the Department of State's Directorate of Defense Trade 
Controls (DDTC) to propose controls for the ITAR's USML Category XII. 
After reviewing public comments to the May 2015 rule, BIS published a 
second proposed rule entitled ``Revisions to the Export Administration 
Regulations (EAR): Control of Fire Control, Laser, Imaging, and 
Guidance and Control Equipment the President Determines No Longer 
Warrant Control Under the United States Munitions List (USML)'' (81 FR 
8421) (``February 2016 rule''). This second proposed rule was also 
published in conjunction with a second proposed rule published by DDTC 
to propose new controls for USML Category XII.
    In response to the February 2016 rule, BIS received twenty public 
comments. Eleven commenters believed that the February 2016 rule was an 
improvement over the May 2015 rule, while no commenters believed that 
the February 2016 rule was worse than the May 2015 rule. The commenters 
supported the efforts, including the greater use of ``specially 
designed,'' to reduce controlling items in normal commercial use in 
USML Category XII or the corresponding 600 series entries in the CCL. 
Further, many commenters noted that the revisions in the February 2016 
rule created a more transparent and predictable structure and reduced 
confusion and complexity associated with terminology proposed in the 
May 2015 rule. With the changes made in the February 2016 rule, many 
commenters believed that the proposals would better balance national 
security concerns while reflecting technological advancement and the 
increasing commercial market demand for many items in the laser, 
photonics, optics, infrared detection, and related industries. 
Consequently, some commenters stated that the February 2016 rule would 
help reduce current and future competitive disadvantages for U.S. 
industry and reduce the incentive to offshore production and research 
activities.
    Some commenters also expressed general concerns regarding the 
February 2016 rule. Many commenters believed that the increased 
controls proposed for infrared detection items were still too strict, 
overly complicated, and not reflective of foreign availability and 
licensing policies of Wassenaar-member countries and non-Wassenaar 
countries. To address some of these concerns, BIS is amending some of 
the proposed controls, as described further herein. Additionally, to 
address concerns on complexity and increased costs of compliance, 
especially for small businesses, BIS will continue to conduct extensive 
outreach to assist organizations in their compliance efforts. A summary 
of the public comments and changes made to the proposed rule are 
addressed below.
    In this final rule, all references to the USML are to the list of 
defense articles that are controlled for the purpose of export or 
temporary import pursuant to the ITAR, and not to the defense articles 
on the USML that are controlled by the Bureau of Alcohol, Tobacco, 
Firearms and Explosives (ATF) for the purpose of permanent import under 
its regulations (see 27 CFR part 447). Pursuant to Sec.  38(a)(1) of 
the AECA, all defense articles controlled for export or import are part 
of the USML under the AECA. For the sake of clarity, the list of 
defense articles controlled by ATF for the purpose of permanent import 
is the United States Munitions Import List (USMIL). The transfer of 
defense articles from the ITAR's USML to the EAR's CCL for the purpose 
of export controls does not affect the list of defense articles 
controlled on the USMIL under the AECA for the purpose of permanent 
import.

Revisions To Further Harmonize and Simplify the EAR

    The February 2016 rule included two proposed changes to harmonize 
provisions in the EAR--removing controls related to certain QRS-11 
sensors and revising license requirements related to certain uncooled 
thermal imaging cameras. This final rule adopts the proposed changes 
for QRS-11 sensors but does not adopt the proposed changes for license 
requirements related to uncooled thermal imaging cameras.

Removal of Controls Specific to QRS-11 Sensors

    As described in the February 2016 rule, BIS published a final rule 
in 2007 to control certain QRS-11 sensors that were previously subject 
to the ITAR. These sensors were originally designed for military 
application but began to be used in civil aircraft, which would have 
required State Department authorization for exports and reexports, as 
the ITAR does not contain a de minimis level or a general exception for 
controlled content embedded within uncontrolled systems. Since ECR 
accounts for the movement of items from control on the ITAR to control 
on the EAR, BIS proposed to remove special controls related to such 
QRS-11 sensors, including removing the RS Column 1 control and 
references to such sensors

[[Page 70322]]

from ECCN 7A994, the 0% de minimis level for such sensors in Sec.  
734.4(a)(3), the restriction on the availability of license exceptions 
for such sensors in Sec.  740.2(a)(9), references to the sensors in 
ECCNs 7E994 (Related Controls) and 9A991 (License Requirement Notes and 
Related Controls), and the reference to such sensors in Note 1 to the 
definition of ``specially designed'' in part 772.
    BIS did not receive any public comments on QRS-11 sensors and thus 
adopts the changes as proposed in this final rule. To the extent that 
such sensors are not described on the USML (and the agencies do not 
believe that any of the sensors are described on the revised USML), one 
would follow the Order of Review in Supplement No. 4 to part 774 to 
determine whether the sensors may be captured under a 600 series ECCN 
or under a dual-use ECCN.

Retention of License Requirements and License Exception Eligibility for 
Certain Uncooled Thermal Imaging Cameras Controlled in ECCN 6A003

    The February 2016 rule proposed to revise license requirements and 
license exception eligibility for certain uncooled thermal imaging 
cameras. Under the current provisions of Sec.  742.6, the RS Column 1 
reason for control in ECCN 6A003 does not apply to exports or reexports 
to countries in Country Group A:1 if certain uncooled thermal imaging 
cameras are fully packaged for use as consumer ready civil products or 
if such cameras with not more than 111,000 elements are to be embedded 
in civil products by authorized companies. Additionally, paragraph (b) 
of License Exception APR is available for such cameras when reexported 
to and among countries in Country Group A:1. In the February 2016 rule, 
BIS proposed to remove this license requirement and license exception 
structure (which for ease of reference is described in this rule as an 
authorization construct). As part of this proposed removal, BIS 
proposed to make all cameras in ECCN 6A003 subject to an RS1 control, 
because the agency believed that License Exception STA would be 
available for such transactions and thus the complexity of this 
authorization structure was no longer needed.
    Two commenters expressed concerns about these proposed changes. One 
commenter stated that removing this authorization construct for such 
cameras would put U.S. industry at a competitive disadvantage with 
respect to companies in the European Union and Japan. The commenter 
noted that License Exception APR is not available for items exported 
under License Exception STA, and the commenter pointed out that exports 
to Mexico for these cameras would now require a license and STA would 
not be available for such transactions. BIS agrees that there is a 
distinct difference between this authorization construct and License 
Exception STA. Consequently, this final rule retains the current 
provisions in Sec. Sec.  742.6(a)(2) and (a)(4)(ii), the reporting 
requirement in Sec.  743.3, endnotes 2 and 4 used in the Commerce 
Country Chart (Supplement No. 1 to part 738), and the provision in 
paragraph (b) of License Exception APR for such cameras (see further 
below for additional revisions to License Exception APR).
    Two commenters also recommended revising the scope of RS1 and RS2 
controls that apply to ECCN 6A003. One commenter suggested making all 
6A003 cameras with a frame rate of less than or equal to 60 Hz subject 
to RS2 controls in order to harmonize U.S. controls with other 
Wassenaar countries. In addition, another commenter suggested revising 
Note 3 to 6A003.b.4.b so that 6A003 does not control imaging cameras 
with a maximum frame rate equal to or less than 60 Hz and a focal plane 
array with not more than 328,000 elements. The commenter further noted 
if that change was not possible, then all items in 6A003 should be 
subject to an RS2 control rather than RS1 control due to foreign 
availability for such items and that the industry standard for number 
of elements has increased to 328,000. At this time, BIS is electing to 
maintain the current RS1 and RS2 controls for ECCN 6A003. BIS notes 
that the use of specially designed in USML Category XII reduces the 
likelihood of the ITAR controlling items in normal commercial use, and 
this clearer jurisdictional line should greatly benefit industry. That 
change, coupled with the retention of the authorization construct in 
Sec.  742.6 for certain uncooled thermal imaging cameras, is sufficient 
at this time to address the commenters' concerns.

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

    To address the sensitivity of certain dual-use items related to 
infrared detection capability, the February 2016 rule included proposed 
restrictions for the export or reexport of several sensors and cameras, 
and related software and technology, that provide important night 
vision capability for military use but are also widely used in civil 
products and applications. This final rule adopts many of those 
proposals, with changes noted below, by amending Sec. Sec.  734.4, 
740.2, 740.16, 740.20, 742.6, and 744.9 of the EAR. In addition, this 
final rule adds ECCN 0E987 and revises parts of ECCNs 0A987, 6A002, 
6A003, 6A990, 6A993, 6D002, 6D003, 6D991, 6E001, 6E002, and 6E990.

Revisions to End-Use/End-User Controls in Sec.  744.9

    Section 744.9 requires a license for the export or reexport to any 
destination other than Canada for cameras controlled by ECCNs 
6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c when the exporter or reexporter 
knows or is informed that the item is intended to be used by a military 
end-user or to be incorporated into a military commodity controlled by 
ECCN 0A919, in addition to other applicable license requirements in the 
EAR.
    The February 2016 rule proposed to revise Sec.  744.9 to require a 
license for exports, reexports, or transfers (in-country) of 
commodities controlled by ECCNs 0A987 (incorporating items in ECCNs 
6A002 and 6A003, or certain cameras in 6A993.a), 6A002, 6A003, 6A990, 
6A993.a (commodities meeting the criterion of Note 3.a to 6A003.b.4), 
8A002.d.1.c, and 8A002.d.2, when the exporter, reexporter, or 
transferor knows or is informed that the item is intended to be used by 
a military end user or to be incorporated into a military commodity 
controlled by ECCN 0A919. This final rule adopts these changes to Sec.  
744.9 with changes described below.
    Three commenters made recommendations to address concerns regarding 
the proposed expansion of Sec.  744.9. Two commenters requested that 9 
Hz cameras in 6A993.a be removed from the scope of Sec.  744.9. They 
asserted that including 9 Hz cameras would put U.S. companies at a 
competitive disadvantage since all other countries do not consider them 
to be dual use. Also, one of the commenters mentioned that adding 9 Hz 
cameras would greatly increase complexity and burden since such cameras 
are often low-cost consumer goods available through distributors and 
retail. Also, the commenter was unaware of any 9 Hz cameras being used 
in military commodities and recommended focusing Sec.  744.9 only on 
those commodities that are easily incorporated into other items. BIS 
notes that while the commenter's 9 Hz cameras may not be ideal for 
incorporation into a foreign military commodity, the U.S. Government is 
aware of 9 Hz cameras being used and advertised in foreign military 
commodities. Also, BIS believes that the end-use and end-user based 
controls in Sec.  744.9 are sufficiently tailored to have less impact 
on U.S. companies as one must know or have reason to know that such 
items will be used by a military

[[Page 70323]]

end user or incorporated into a foreign military commodity. However, to 
further narrow the scope of the control and provide greater clarity, 
BIS is adding new paragraph (a)(2) to note that the license requirement 
of Sec.  744.9 does not apply to exports, reexports, or transfers (in-
country) when the items described above are being exported, reexported, 
or transferred as part of a military deployment by a unit of the 
government of a country in Country Group A:1 (see Supplement No. 1 to 
part 740). Similar language is currently used in Sec.  742.6(a)(3).
    One commenter recommended removing the license requirement based on 
military end user but maintaining the license requirement based on 
incorporation into a foreign military commodity. The commenter noted 
that the control based on military end user can be confusing since the 
same item being used for the same purpose would not require a license 
in one scenario (e.g., security camera for a factory) but would require 
a license in another scenario (e.g., security camera for a military 
installation). BIS believes that the addition of paragraph (a)(2) will 
help partially address this concern. However, BIS is maintaining the 
license requirement based on military end user since it is a defined 
term, and BIS believes it is appropriate to require a license in such 
circumstances.
    This final rule also makes additional conforming changes to Sec.  
744.9. On September 20, 2016, BIS published a final rule (81 FR 64656) 
revising the CCL to implement changes to the Wassenaar Arrangement's 
List of Dual-Use Goods and Technologies. As part of these revisions, 
BIS amended ECCN 8A002 to remove items previously controlled in 
8A002.d.1.c and redesignate items previously controlled in 8A002.d.2 as 
8A002.d. Since the February 2016 rule proposed that 8A002.d.1.c and d.2 
items be subject to the license requirement of Sec.  744.9, this final 
rule revises Sec.  744.9 to refer to 8A002.d rather than 8A002.d.1.c 
and d.2. Further, this final rule makes one clarifying change to Sec.  
744.9. In order to more accurately describe the scope of the license 
requirement, this final rule revises the title of Sec.  744.9 to 
``[r]estrictions on exports, reexports, and transfers (in-country) of 
certain cameras, systems, or related components.''

Revisions to ECCN 0A919 and Sec.  734.4 for Foreign Military 
Commodities

    ECCN 0A919 controls ``military commodities'' produced and located 
outside the United States that are not subject to the ITAR and 
incorporate one or more cameras controlled under ECCNs 6A003.b.3, 
6A003.b.4.b, or 6A003.b.4.c. In addition, ECCN 0A919 controls such 
``military commodities'' if they incorporate more than a de minimis 
amount of U.S.-origin 600 series content or are the direct products of 
U.S.-origin 600 series technology or software.
    The February 2016 rule proposed to control the reexport of such 
military commodities that incorporate a wider group of infrared 
detection items on the CCL. Thus, the February 2016 rule proposed to 
re-structure the sub-paragraphs in the Items paragraph in that ECCN and 
expand 0A919 to control military commodities produced outside the 
United States that are not subject to the ITAR and incorporate 
commodities classified under ECCNs 6A002, 6A003, 6A990, or 6A993.a 
(having a maximum frame rate equal to or less than 9 Hz as and thus 
meeting the criterion specified in Note 3.a to ECCN 6A003.b.4.b). BIS 
received no public comments on these changes, and this final rule 
maintains the proposed expansion of the scope of ECCN 0A919 with the 
clarification described below.
    Section 734.4(a)(5) of the EAR currently provides that there is no 
de minimis level for foreign military commodities, i.e., those 
described in ECCN 0A919, that incorporate certain infrared detection 
items. The February 2016 rule proposed to amend the de minimis 
treatment for 0A919 items incorporating infrared detection content to 
make them consistent with 0A919 items incorporating 600 series content 
by limiting the 0% de minimis level to Country Group D:5 only. BIS 
received no public comments on this proposed revision. Thus, this final 
rule amends Sec.  734.4(a)(5) to provide that there is no de minimis 
level for foreign-made military commodities incorporating one or more 
of the commodities described in ECCN 0A919.a.1 when destined for a 
country in Country Group D:5. When destined for a country outside of 
Country Group D:5, such 0A919 commodities would be subject to the 25% 
de minimis threshold. To reflect this change to Sec.  734.4(a)(5), this 
final rule also revises 0A919.a.1 to clarify that the sub-paragraph 
captures foreign-made military commodities that ``[i]ncorporate more 
than a de minimis amount of U.S.-origin controlled content classified 
under ECCNs 6A002, 6A003, 6A990, or 6A993.a (having a maximum frame 
rate equal to or less than 9 Hz and thus meeting the criterion of Note 
3.a to 6A003.b.4).''

Revisions to ECCN 0A987 and Establishment of ECCN 0E987

    ECCN 0A987 controls certain optical devices for firearms and 
related components. The February 2016 rule proposed to revise ECCN 
0A987.f to specify that the entry controls laser aiming devices or 
laser illuminators ``specially designed'' for use on firearms, and 
having an operational wavelength exceeding 400 nm but not exceeding 710 
nm. A proposed note to ECCN 0A987.f further specified that the entry 
does not control laser boresighting devices that must be placed in the 
bore or chamber to provide a reference for aligning the firearms 
sights. BIS received no public comments on these proposed changes and 
thus adopts them in this final rule.
    The February 2016 rule also proposed to revise the Related Controls 
to refer readers to applicable controls in USML Category XII as well as 
the proposed license requirement for certain 0A987 items under Sec.  
744.9. BIS received no public comments on revisions to the Related 
Controls. This final rule amends the Related Controls paragraph to 
reflect revisions in the Department of State's final rule regarding 
controls for weapons sights to advise that sighting devices using 
second generation image intensifier tubes having luminous sensitivity 
greater than 350 [micro]A/lm, or third generation or higher image 
intensifier tubes, are subject to the ITAR. Moreover, this final rule 
adds a reference in the Related Controls to riflescopes subject to the 
ITAR under USML Category I(f). This final rule also retains the 
reference to the Sec.  744.9 license requirement since that license 
requirement is being adopted under this final rule.
    The February 2016 rule further proposed creating a new ECCN for 
technology required for the ``development'' or ``production'' of 
commodities controlled by ECCN 0A987, if such commodities incorporate a 
focal plane array or image intensifier tube. Such technology would be 
subject to RS Column 1 and Anti-Terrorism (AT) Column 1 controls. BIS 
received no public comments on this proposal and thus adopts the 
establishment of ECCN 0E987 as proposed.

Revisions to ECCN 6A002

    ECCN 6A002 controls specified optical sensors or equipment and 
components therefor. The February 2016 rule proposed to maintain the 
existing reasons for control and did not include a worldwide RS control 
that was first proposed in the May 2015 rule. Also, the February 2016 
rule proposed

[[Page 70324]]

to add a reference to corresponding controls for focal plane arrays, 
image intensifier tubes, and related parts and components in USML 
Category XII(e) and a reference to the proposed license requirement in 
Sec.  744.9. This final rule makes those changes to 6A002, but 
clarifies that the type of focal plane arrays controlled in Category 
XII(e) are primarily infrared focal plane arrays. This final rule also 
adds a reference in the Related Controls to refer readers to space-
qualified focal plane arrays subject to the ITAR in USML Category XV(e) 
to help readers understand the potential jurisdiction of various types 
of focal plane arrays. Additional limitations on the use of license 
exceptions for 6A002 items are addressed further herein.
    BIS received five public comments on proposed changes to ECCN 
6A002. One commenter supported the removal of the aforementioned 
worldwide RS control. Another commenter stated that it was unclear what 
two-dimensional focal plane arrays will be EAR99 or controlled on the 
CCL. Focal plane arrays are controlled based on the technical 
parameters in ECCN 6A002.
    Two commenters requested that BIS evaluate whether square pixel 
one-dimensional focal plane arrays with a peak response in the 
wavelength range exceeding 1200 nm but not exceeding 3000 nm should 
continue to be controlled in 6A002.a.3.d since they are used almost 
exclusively for commercial applications and are similar to other focal 
plane arrays that are EAR99. Removing these square pixel focal plane 
arrays from 6A002 would require multilateral agreement at the Wassenaar 
Arrangement and thus exceeds the scope of this rule. However, 
commenters are welcome to submit additional information to BIS to help 
inform further discussion on whether a Wassenaar proposal to amend this 
ECCN is warranted.
    Two commenters stated that BIS should carve out civil automotive 
focal plane arrays from being controlled under ECCN 6A002. The 
commenters asserted that this change would be consistent with other CCL 
technologies when used for civil automotive applications and would help 
ensure further research and development into collision avoidance 
systems. BIS does not accept this recommendation because such a change 
would require agreement with Wassenaar members and thus exceeds the 
scope of this rule. However, commenters are welcome to submit 
additional information to BIS to help inform further discussion on 
whether a Wassenaar proposal to amend this ECCN is warranted.

Revisions to ECCN 6A003

    ECCN 6A003 controls specified cameras, systems or equipment and 
components therefor. As previously described, this final rule does not 
adopt the proposed changes to the authorization construct for certain 
uncooled thermal imaging cameras. Thus, this final rule does not amend 
the reasons for control in 6A003.
    The February 2016 rule proposed to include additional changes to 
6A003, such as adding a reference to USML Category XII and revising the 
reference to the license requirement in Sec.  744.9. BIS received no 
comments on these changes, and thus adopts them in this final rule. 
However, this final rule updates the reference to the ITAR in order to 
point out that cameras subject to the ITAR are found in USML Category 
XII(c) and (e). In addition, BIS is adding a License Requirement Note 
to provide further clarification on what constitutes a ``camera'' for 
purposes of classifying items under 6A003. The License Requirement Note 
provides that ``[c]ommodities that are not subject to the ITAR but are 
of the type described in USML Category XII(c) are controlled as cameras 
in ECCN 6A003 when they incorporate a camera controlled in this ECCN.'' 
This note is consistent with Interpretation 2 in Sec.  770.2, confirms 
BIS's existing classification practice for items in 6A003, and is 
intended to link the more specific terminology of USML Category XII 
with the Wassenaar-based terminology of 6A003.
    Three commenters also provided feedback and recommendations on 
other aspects of 6A003. One commenter was concerned that researchers 
may be burdened with additional license requirements for items deployed 
internationally for field research due to the removal of STA. BIS notes 
that this final rule does not remove STA availability for 6A003 items 
being exported or reexported to countries in Country Group A:5. The 
commenter also supported keeping the related technology control for 
``use'' technology unchanged. While this rule does affect STA 
availability for related technology (see further below), the commenter 
is correct that all six elements of the definition of ``use'' 
technology must be met for that control to apply.
    One commenter also requested that BIS revise 6A003 so that certain 
linescan cameras incorporating one-dimensional square pixel focal plane 
arrays would not be controlled under 6A003. The commenter stated that 
such cameras are generally intended for commercial use. Another 
commenter requested that BIS add a note to exclude civil automotive 
infrared focal plane array systems from control under ECCN 6A003. As 
with the comments regarding similar items in 6A002, these changes to 
6A003 would require agreement with Wassenaar members and exceed the 
scope of this rule. However, commenters are welcome to submit 
additional information to BIS to help inform further discussion on 
whether a Wassenaar proposal to amend this ECCN is warranted.

Revisions to ECCNs 6A990 and 6E990

    ECCN 6A990 controls certain read-out integrated circuits (ROICs) 
that enable 3D automotive imaging and ranging. The February 2016 rule 
proposed to expand the scope of ROICs controlled under that ECCN by 
controlling ROICs that are specially designed for focal plane arrays 
controlled under ECCN 6A002.a.3. Such ROICs would be subject to an RS1 
control but would be eligible for License Exception LVS. However, under 
the proposed rule, ROICs specially designed for civil automotive 
applications would not be controlled under 6A990.
    One commenter expressed support for controlling ROICs ``specially 
designed'' for 6A002.a.3 focal plane arrays under the EAR rather than 
the ITAR. However, three commenters also expressed concerns or 
requested clarification on the proposals for ROICs in 6A990. One 
commenter opposed expanding the scope of 6A990 to include certain non-
ITAR ROICs that are currently EAR99. The commenter cited foreign 
availability for such ROICs that today may be exported without a 
license. BIS believes that expanding the scope of 6A990 is warranted to 
address military applications of dual-use ROICs. Also, BIS believes 
that industry will benefit from the clearer bright line control for 
ROICs in the State Department's final rule, which should reduce the 
possibility of commercial ROICs becoming controlled under the ITAR. 
With respect to foreign availability, BIS plans to work with its 
interagency colleagues to propose a control for ROICs on the Wassenaar 
Arrangement Dual-Use List.
    One commenter expressed confusion regarding the proposed note 
carving out ROICs specially designed for civil automotive applications 
from control under 6A990. The commenter believed that most or all ROICs 
used in civil automotive applications are part of general purpose 
infrared focal plane arrays that are used in numerous applications. 
Thus, it was unclear how a ROIC could be specially designed for only 
civil automotive applications. As a result of reviewing commodity

[[Page 70325]]

jurisdiction determinations, BIS believes that there are ROICs that 
have been specially designed for civil automotive applications. To the 
extent that a ROIC is specially designed for a general purpose focal 
plane array controlled under 6A002, then it would be controlled under 
6A990.
    One commenter also recommended that all ROICs specially designed 
for civil applications be excluded from control under 6A990. For the 
reasons described above regarding concern over military applications 
and the added benefit of clarity of the potential impact of the ITAR on 
commercial ROICs, BIS does not accept this recommendation.
    One commenter stated that commercial ROICs should be EAR99 and 
requested clarification on how commercial ROICs would be controlled 
under the February 2016 rule. Under this final rule, ROICs that are not 
ITAR controlled (i.e., are not infrared focal plane array ROICs 
specially designed for a defense article) would be controlled under 
6A990 if they are specially designed for a focal plane array in 
6A002.a.3. If a ROIC is not specially designed for a 6A002.a.3 focal 
plane array, then the ROIC would be designated EAR99. Also, if a ROIC 
is specially designed for civil automotive applications, then the ROIC 
would also be designated EAR99.
    One commenter also stated that the $500 LVS exception is reasonable 
but requested clarification on whether the value limit would apply to 
each ROIC or to a wafer of ROICs. The $500 value limit does not apply 
to an individual ROIC or a wafer of ROICs but rather to the actual 
total selling price of all 6A990 ROICs in the same order. Section 740.3 
describes the terms and conditions of using License Exception LVS, 
including the requirements for valuing the commodities at issue. In 
addition to properly valuing the order, orders may not be split to meet 
the applicable value limit, and the total value of exports per calendar 
year to the same ultimate or intermediate consignee may not exceed 
twelve times the value limit.
    For the reasons stated above, this final rule revises ECCN 6A990 as 
proposed in the February 2016 rule, with one addition to the Related 
Controls paragraph. Since the ITAR also controls ROICs under Category 
XV(e)(3), this final rule adds a reference to those ROICs as well as 
those controlled under Category XII(e). Also, since this final rule 
adopts the changes to Sec.  744.9 and 0A919, this final rule also 
maintains reference to those provisions in the Related Controls of this 
ECCN. Finally, additional limitations on the use of license exceptions 
for this ECCN are addressed further herein.
    ECCN 6E990 controls technology required for the development or 
production of ROICs controlled in 6A990. The February 2016 rule 
proposed to revise the Related Controls paragraph to reference the 
corresponding USML control for technical data directly related to ROICs 
described in Category XII. BIS received no public comments on this 
revision and adopts it in this final rule, but makes one corresponding 
change. Since this final rule revises the Related Controls paragraph of 
6A990 to refer to ROICs controlled under Category XV, this final rule 
also refers to the applicable technical data control in Category XV for 
such ROICs.

Revisions to 6A993

    ECCN 6A993 controls cameras in 6A993.a having a maximum frame rate 
equal to or less than 9 Hz and thus meeting the criterion specified in 
Note 3.a to ECCN 6A003.b.4.b. The February 2016 rule proposed to revise 
the Related Controls paragraph to remind readers of the applicability 
of Sec.  744.9 and ECCN 0A919 to 9 Hz cameras. Since this final rule 
revises Sec.  744.9 and ECCN 0A919 to add 9 Hz cameras to those 
provisions, this final rule adopts the proposal to add references to 
those provisions in the Related Controls paragraph of 6A993.
    BIS did not receive public comments on the Related Controls 
paragraph, but did receive two comments related to 6A993. One commenter 
stated that 6A993 should control cameras having an operating speed of 
60 Hz or less and incorporating a focal plane array in 6A003.b.4.b with 
a maximum of 328,000 elements or less. BIS rejects this recommendation 
as this would require agreement with Wassenaar members and is beyond 
the scope of this rule. One commenter expressed concerns that 6A993 
items could be pulled into the ITAR due to the use of specially 
designed for infrared focal plane arrays in the State Department's 
second proposed rule. While the State Department's final rule addresses 
this issue, BIS notes that the intent was to control uniquely military 
infrared detection items (even comparatively lower performing military 
items) on the ITAR; therefore the EAR controls the commercial and dual-
use infrared detection items. Thus, the commenter's concern is correct, 
but that was intended under the February 2016 rules as well as under 
these final rules.

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

    The Wassenaar Arrangement's List of Dual-Use Goods and Technologies 
imposes limited controls on software related to commodities controlled 
under ECCNs 6A002 and 6A003. As a result, the CCL currently has the 
following multilateral and unilateral software controls related to such 
items: ECCN 6D002 (software specially designed for the use of 
commodities controlled under ECCN 6A002.b), ECCN 6D003.c (software 
designed or modified for cameras incorporating focal plane arrays 
specified by ECCN 6A002.a.3.f and designed or modified to remove a 
frame rate restriction and allow the camera to exceed the frame rate 
specified in ECCN 6A003.b.4 Note 3.a), and ECCN 6D991 (software, 
n.e.s., specially designed for the development, production, or use of 
commodities controlled under ECCN 6A002.a.1.d or 6A990).
    To address concerns regarding the lack of comprehensive software 
controls related to commodities controlled under ECCNs 6A002 and 6A003, 
the February 2016 rule proposed to consolidate existing, unilateral 
software controls and expand them to revise ECCN 6D991 to also control 
software, not elsewhere specified, that is specially designed for the 
development, production, or use of commodities controlled by ECCNs 
6A002 or 6A003. The February 2016 rule proposed to make such software 
subject to the RS Column 1 reason for control. Also, the February 2016 
rule proposed to remove eligibility to use License Exception TSR for 
the software described above in ECCNs 6D002 and 6D003.c. To prevent 
confusion over multiple ECCNs potentially controlling the same 
software, the February 2016 rule proposed to add language to the 
Related Controls paragraphs of ECCN 6D991 to confirm that software 
currently controlled under ECCNs 6D002 and 6D003.c would remain 
controlled under those provisions. To reflect this understanding, the 
February 2016 rule also proposed to revise the Related Controls 
paragraphs of ECCNs 6D002 and 6D003 to provide references to ECCNs 
6D991.
    Four commenters expressed concerns about the proposed revisions to 
the software controls described above. Two commenters recommended 
removing ``use'' software for 6A002 and 6A003 commodities from the 
scope of ECCN 6D991. One of those commenters stated that software field 
upgrades would be more challenging and costly, which would put U.S. 
suppliers at a competitive disadvantage. The other commenter mentioned 
that even though

[[Page 70326]]

typical operation software would be unlikely to meet all six elements 
of the definition of ``use,'' the control could create confusion. BIS 
agrees with the second commenter that it is unlikely that operation 
software would meet all six elements of ``use.'' Further, BIS believes 
that it is unlikely that software for field upgrades, which would 
likely be focused on camera maintenance, would include all six elements 
of ``use'' and thus be controlled. Therefore, BIS does not accept this 
recommendation.
    Another commenter expressed concerns that the proposed expansion of 
6D991 could affect software used in the production and testing of 6A003 
and possibly 6A993 items, but the commenter noted it was unclear the 
extent to which the controls would apply to certain types of software 
due to difficulty in applying the definition of ``specially designed'' 
in the context of software. The commenter also expressed concerns on 
needing to get a license to provide field testing software to service 
centers. BIS notes that the intent of expanding 6D991, among other 
things, was to include software specially designed for the production 
of 6A003 cameras. This does not include software used for testing 6A003 
cameras for purposes outside of the production or development process. 
Therefore, BIS believes that the scope of control in 6D991 is 
appropriate. With respect to applying the definition of ``specially 
designed'' to software, BIS notes that any software would be caught by 
paragraph (a) if it achieves the parameters described in the relevant 
USML or CCL entry as a result of ``development'' or if it is used in or 
with a commodity enumerated on the CCL or USML. Software is, however, 
eligible for the paragraph (b) releases. For example, if software used 
for the production of a controlled item has the same function, 
performance capabilities, and the same or equivalent form and fit, as 
software used in the production of an item controlled for AT reasons 
only, then such software would qualify for the release under paragraph 
(b)(3). Note 3 to paragraph (b)(3) also provides guidance on 
interpreting ``form,'' ``fit,'' ``function,'' and ``performance 
capability'' with respect to software. Finally, with respect to 
software for field testing centers, such software would have to meet 
all six elements of the definition of ``use'' in order to be controlled 
in 6D991.
    One commenter stated that software used to operate a camera should 
be EAR99 and further expressed concern that a license would be required 
for software that interfaces with the arrays for either manufacturing 
or testing applications. Under the February 2016 proposed rule and this 
final rule, software simply used to operate a camera would not be 
controlled under 6D991 and would be EAR99. Again, all six elements of 
the ``use'' definition must be met in order to be considered ``use'' 
software under 6D991. In addition, BIS reiterates that software used 
for testing outside of the production or development process would not 
be captured by 6D991. Software that is used to test during the 
production or development process and that meets the definition of 
``specially designed'' would be controlled by 6D991.
    One commenter opposed removing the ability to use License Exception 
TSR for 6D002 (software ``specially designed'' for the ``use'' of 
commodities controlled under ECCN 6A002.b) and 6D003.c. The commenter 
cited concerns about U.S. competitiveness and working cooperatively in 
Wassenaar countries. BIS believes that U.S. competitiveness will be 
greatly improved by the bright line approach in the State Department's 
final rule for USML Category XII, which makes clear that commercial 
items (and related technology and software) are not generally intended 
to be controlled under the ITAR. BIS believes that removing TSR 
eligibility for these ECCNs is warranted.
    BIS received no comments related to other aspects of the changes to 
ECCNs 6D002, 6D003, and 6D991. For the reasons described above, this 
final rule adopts the proposed changes to those ECCNs without revision.

Revisions to ECCNs 6E001 and 6E002

    ECCNs 6E001 and 6E002 control development and production 
technology, respectively, related to multiple ECCNs in Category 6, 
including items related to infrared detection in ECCNs 6A002 and 6A003. 
The February 2016 rule proposed to remove eligibility to use License 
Exception TSR for all 6E001 or 6E002 technology related to commodities 
controlled under 6A002 or 6A003. Further, the February 2016 rule 
proposed to add guidance to the Related Controls paragraphs in those 
ECCNs to provide clarity on technology controls related to commodities 
subject to the ITAR.
    BIS received two public comments in response to the proposed 
changes to 6E001 and 6E002. One commenter stated that the February 2016 
rule would put restrictions on the commodities related to manufacturing 
a focal plane array, including ``substrates, epitaxial grown materials, 
zinc diffusion, software, and firmware in cameras.'' The controls in 
6E001 and 6E002 apply to technology for the development or production 
of certain commodities (and software in the case of 6E001). Those 
controls do not apply to the commodities themselves, which are found in 
ECCNs 6A002 and 6A003. In addition, the applicable software controls 
are found in ECCNs 6D002, 6D003, and 6D991.
    One public commenter expressed concerns about the removal of 
License Exception TSR due to concerns about U.S. competitiveness and 
working cooperatively in Wassenaar countries. As previously mentioned, 
BIS believes that U.S. competitiveness will be greatly improved by the 
bright line approach in the State Department's final rule for USML 
Category XII, which makes clear that commercial items (and related 
technology and software) are not generally intended to be controlled 
under the ITAR. BIS believes that removing TSR eligibility for these 
ECCNs is warranted.
    This final rule revises ECCNs 6E001 and 6E002 as proposed, but 
amends the availability of License Exception TSR for certain technology 
related to 6A003 cameras. That change is described further below in 
response to public comments regarding License Exception STA.

Addition to Section 740.2

    Section 740.2 sets forth restrictions on all license exceptions, 
and the February 2016 rule proposed a new restriction in Sec.  
740.2(a)(7) that would apply to 6E001 or 6E002 technology required for 
the development or production of the following focal plane arrays: 
Photon detector, microbolometer detector, pyroelectric, or 
multispectral detector infrared focal plane arrays (IRFPAs), described 
in ECCN 6A002, having a peak response within the wavelength range 
exceeding 900 nm but not exceeding 30,000 nm, excluding lead sulfide or 
lead selenide infrared focal plane arrays having a peak response within 
the wavelength range exceeding 1,000 nm but not exceeding 5,000 nm and 
not exceeding 16 detector elements. Moreover, under the February 2016 
rule, Sec.  740.2(a)(7) would apply to 6E001 or 6E002 technology 
required for the development or production of third generation image 
intensifier tubes or image intensifier tubes greater than third 
generation (e.g., EBAPS). BIS received no public comments on this 
provision and adopts it in this final rule. To provide further clarity, 
this final rule includes the full name for EBAPS, Electron Bombarded 
Active Pixel Sensor. As mentioned in the February 2016 rule and adopted 
in this final rule,

[[Page 70327]]

the 6E001 and 6E002 technology described above will be eligible for 
License Exception GOV under Sec.  740.11(b)(2) of the EAR.

Restrictions on the Use of License Exception APR

    License Exception APR currently authorizes specified reexports of 
items subject to the EAR by certain countries to specified destinations 
without individual licenses from BIS. The February 2016 rule proposed 
to increase the number of items ineligible for Sec.  740.16(b) by 
including all items in ECCNs 6A002, 6A003, and 6A990 in the 
restrictions found in paragraph (a)(2) of that section. BIS received 
one general comment that opposed any reduction in the availability of 
license exceptions, but the commenter did not address any specific 
concerns regarding APR. Consequently, BIS adopts the changes proposed 
for paragraph (a) of APR in this final rule and makes only slight 
revisions to that paragraph for clarity.
    As previously mentioned, this final rule retains the license 
requirement and license exception construct for certain uncooled 
thermal imaging cameras. This construct includes provisions in 
paragraph (b) of APR. However, this final rule adopts the non-
substantive changes to paragraph (b) that were proposed in the February 
2016 rule and rearranges the list of items to make the text clearer. 
BIS received no comments on the clarifying, non-substantive changes to 
Sec.  740.16(b) and adopts them in this final rule while keeping the 
existing special provision for certain uncooled thermal imaging cameras 
in Sec.  740.16(b)(3).

Restrictions on the Use of License Exception STA

    Section 740.20(b)(2)(x) restricts the use of License Exception STA 
for specific commodities controlled by ECCN 6A002, as well as related 
technology controlled by 6E001 or 6E002. The February 2016 rule 
proposed to expand that restriction to include all items in the 
following ECCNs: 6A002; 6A990; 6D002 (for the use of commodities 
controlled under ECCN 6A002.b); 6D003.c; 6D991 (for the development, 
production, or use of commodities controlled under ECCNs 6A002, 6A003, 
or 6A990); 6E001 (for the development of commodities controlled under 
ECCNs 6A002 or 6A003); 6E002 (for the production of commodities 
controlled under ECCNs 6A002 or 6A003); and 6E990. Additionally, the 
February 2016 rule proposed to add new ECCN 0E987 to the list of items 
restricted from STA under Sec.  740.20(b)(2)(ii).
    Three commenters expressed concerns with those proposed 
restrictions. One commenter recommended that STA be allowed for all 
items in 6A002 and 6A990. The commenter noted that doing so would be 
consistent with continuing to allow STA for 6A003 cameras. Also, the 
commenter believed this restriction would put U.S. companies at a 
competitive disadvantage due to foreign availability for such items for 
which there are less restrictive controls, and that some development 
technology for 6A990 read-out integrated circuits (ROICs) is already 
publicly available. The commenter also noted that ROICs not subject to 
the ITAR have historically been EAR99. BIS does not accept this 
recommendation at this time. Items controlled in 6A002 and 6A990, while 
dual use, have important military applications, and thus removal of STA 
eligibility is warranted. However, after the effective date of this 
rule, BIS will assess licensing volumes and re-evaluate whether a 
change to STA eligibility is necessary. Further, BIS notes that some 
items in 6A002 are only subject to NS2 and AT controls, so STA would 
not be needed to export or reexport to countries in Country Group A:1.
    In addition to opposing the removal of STA for 6A002 and 6A990, one 
commenter also opposed the license exception's removal for ECCNs 6D002, 
6D003, 6D991, 6E001, and 6E002. The commenter stated removing STA would 
hurt U.S. competitiveness, harm the ability to work internally and 
cooperatively within affiliates in Wassenaar countries, increase 
administrative burden, and could require licenses for providing field 
testing software to service centers. As previously mentioned, BIS 
believes that this software and technology has important military 
applications, and thus excluding the use of STA is warranted. Also, BIS 
believes that U.S. competitiveness will be greatly improved by the 
bright line approach in the State Department's final rule for USML 
Category XII, which makes clear that commercial items (and related 
technology and software) are not generally intended to be controlled 
under the ITAR. With respect to providing field testing software, BIS 
believes that such software is unlikely to meet the definition of 
``use'' and unlikely to be controlled under ECCNs 6D002, 6D003, or 
6D991.
    One commenter requested that BIS allow STA for 6E001 and 6E002 
technology for civil automotive far infrared night vision systems at 
the camera level. The commenter mentioned that the company has used STA 
when civil automotive vehicle manufacturers have required audits on 
products and manufacturing, which includes sharing design and 
manufacturing technology with non-U.S. nationals. BIS accepts this 
recommendation in part. This final rule revises Sec.  740.20(b)(2)(x) 
to remove STA eligibility as described in the February 2016 rule. 
However, this final rule revises the eligibility to use License 
Exception TSR under ECCNs 6E001 and 6E002 to allow technology for the 
integration of 6A003 cameras into camera systems specially designed for 
civil automotive applications. Under this change, this technology may 
be released to Country Group B destinations or nationals so long as all 
terms and conditions of TSR are complied with, including obtaining a 
written assurance. This ability to use TSR is limited to specific 6E001 
or 6E002 technology related to 6A003 cameras, and does not apply to 
6E001 or 6E002 technology related to 6A002 items within the 6A003 
cameras.

Revisions to Licensing Policy

    As previously mentioned, this final rule retains the provisions in 
Sec.  742.6 that apply to the authorization construct for certain 
uncooled thermal imaging cameras. However, the February 2016 rule also 
proposed revisions to licensing policy for items controlled for RS 
reasons by revising Sec.  742.6(b)(1) to include new licensing policy 
for 6E001 or 6E002 technology for the development or production of 
focal plane arrays or image intensifier tubes described in 6A002, or 
for 6E990 technology. Under the February 2016 rule, such technology 
would be subject to a presumption of denial for license applications 
for exports or reexports to countries in Country Group D:5. BIS 
received no public comments on this proposal and is adopting the 
proposed changes to Sec.  742.6(b)(1) in this final rule.
    BIS is also removing the heading in Sec.  742.6(b)(1)(i), which was 
proposed in the February 2016 rule to read ``9x515 and `600 series' 
ECCNs.'' BIS is making this change because that paragraph applies to 
more than just 9x515 and 600 series items. Finally, as described below 
under ECCN 7E611, this final rule removes the proposed worldwide RS 
control for 7E611.a, and thus removes proposed Sec.  742.6(a)(8) and 
references to that paragraph in Sec.  742.6(b)(1).

[[Page 70328]]

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

    The May 2015 rule proposed establishing two separate 600 series 
controls in 6x615 and 7x611. The February 2016 rule proposed to 
consolidate those entries and establish a single ``600 series'' by 
revising ECCN 7A611 and adding new ECCNs 7B611, 7D611, and 7E611 for 
military fire control, laser, imaging, and guidance and control 
commodities, software, and technology. Two commenters supported this 
simplified structure, and this final rule adopts the proposed 
consolidation of 600 series controls under 7x611 ECCNs.
    Since categories 6 and 7 of the CCL currently control certain 
laser, imaging, and guidance items, the February 2016 rule also 
proposed to amend ECCN 6A611 to refer readers to Category 7 to locate 
the appropriate controls. BIS received no comments on this revision. 
This final rule revises 6A611 to add the reference to 7A611, but this 
final rule revises the term ``guidance and control'' to ``guidance'' to 
conform to changes made in the State Department's final rule. 
References to ``control'' are similarly removed throughout these 600 
series entries to conform to the State Department's final rule.
    Three commenters provided comments on these proposed 600 series 
entries. Revisions to the proposed 600 series ECCNs are described 
below.

Establishment of ECCN 7A611

    As described in the February 2016 rule, ECCN 7A611 would control 
military fire control, laser, imaging, and guidance and control 
equipment that would be removed from USML Category XII and that are not 
covered by an existing ECCN subject to controls for reasons other than 
AT reasons. This included controlling certain guidance, navigation, or 
control systems; inertial measurement units; accelerometers; gyros or 
angular rate sensors; and gravity meters (gravimeters) in paragraphs .a 
through .e. Paragraph .x would control parts, components, accessories, 
and attachments that are specially designed for a commodity controlled 
by ECCN 7A611 (except 7A611.y) or a defense article in USML Category 
XII and not controlled elsewhere on the USML or in 7A611.y or 3A611.y. 
All items that would be controlled under 7A611.a-.x would be controlled 
for NS, RS, AT, and UN reasons. Paragraph .y, which would be controlled 
for AT reasons, would control specific parts, components, accessories, 
and attachments specially designed for a commodity subject to control 
in ECCN 7A611, or a defense article in USML Category XII and not 
elsewhere specified on the USML or in the CCL, and parts, components, 
accessories, and attachments specially designed therefor. The February 
2016 rule did not include any items in 7A611.y. This final rule revises 
ECCN 7A611 with revisions to the February 2016 proposed rule as 
described below.
    Two commenters provided recommendations or requested clarification 
on ECCN 7A611. One commenter pointed out that certain dual-use items 
controlled in CCL Category 7 may become controlled under 7A611 because 
such dual-use items would not qualify for the release in paragraph 
(b)(3) of the definition of ``specially designed,'' which applies to 
parts, components, accessories, or attachments that have the same 
function, performance capabilities, and the same or equivalent form and 
fit, as a commodity used in or with an item that is or was in 
production and is either not enumerated on the CCL or USML, or is 
described in an ECCN controlled only for AT reasons. Since many of the 
Category 7 parts and components are incorporated into Category 7 
higher-level assemblies that are subject to NS or MT reasons, such 
parts and components would not be eligible for the (b)(3) release of 
specially designed.
    To address this concern, BIS is revising and restructuring 7A611.x 
to specify that 7A611.x does not control items described in ECCNs 
6A007, 6A107, 7A001, 7A002, 7A003, 7A101, 7A102, or 7A103. Essentially, 
this revision is an exception to the normal process of the Order of 
Review in which 600 series entries normally take precedence over dual-
use entries in the CCL. BIS believes this change is warranted to 
address the concern raised by the commenter, and BIS believes that the 
dual-use controls provide sufficient levels of control to capture 
military items previously in USML Category XII that meet the parameters 
in one of the dual-use ECCNs listed above. As part of this change, BIS 
is also removing the entries that were proposed in 7A611.b-.e for 
inertial measurement units, accelerometers, gyros or angular rate 
sensors, and gravity meters (gravimeters). These items will be 
controlled under 7A611.x to the extent that they are specially designed 
and not controlled under the list of dual-use ECCNs described above. To 
ensure clarity on where such items are controlled, BIS is also adding 
text to 7A611.x to specifically name such items.
    One commenter also questioned why 7A611 does not include the 
missile technology (MT) reason for control. BIS concurs that MT should 
be added to 7A611, and this final rule adds that control to the ECCN 
for commodities in 7A611.a that meet or exceed the parameters in 
7A103.b or .c. Also, with the change described above to 7A611.x, ECCNs 
6A107, 7A101, 7A102, and 7A103 will address those other items 
potentially controlled for MT reasons.
    One commenter recommended that infrared optical elements, such as 
optical blanks and lenses, should not be controlled using ``specially 
designed'' under 7A611.x. Instead, the commenter believed that only 
certain germanium blanks and infrared lenses with certain resistivity 
should be controlled in 7A611. The commenter believed that all other 
optics blanks and infrared lenses should be EAR99. To support these 
recommendations, the commenter stated that applying ``specially 
designed'' would be burdensome since many of these products are made 
according to customer specifications and may have overlapping size, 
curvature, and fit requirements among both military and commercial 
customers. The commenter also believed that such controls would be more 
restrictive than the EU's export control regime. BIS believes that the 
commenter's recommended controls would not capture all optical blanks 
and infrared lenses that warrant control. Further, it is BIS's 
understanding that such items would be controlled under ML 15 of the 
Wassenaar Arrangement if they are specially designed. Therefore, BIS 
does not accept this recommendation. To the extent that optical blanks 
or infrared lenses meet the definition of ``specially designed,'' they 
would be controlled under 7A611.x.
    BIS is also making additional conforming changes. This final rule 
revises the Related Controls paragraph to add references to ECCNs 6A107 
and 7A103 since those ECCNs control related items. Also, this final 
rule removes the sentence in the Related Controls regarding navigation 
and avionics equipment specially designed for military application. In 
the February 2016 rule, that sentence referred readers to ECCN 3A611, 
which is incorrect. Such equipment is currently controlled in ECCN 
9A610. Additionally, this final rule removes the word ``control'' from 
``guidance, navigation, and control systems'' in 7A611.a and from the 
first sentence in the Related Controls to conform with changes made in 
the State Department's final rule.

[[Page 70329]]

Establishment of 7B611

    The February 2016 rule proposed creating ECCN 7B611 to impose 
controls on test, inspection, and production equipment and related 
commodities specially designed for military fire control, laser, 
imaging, and guidance and control equipment. Paragraph .a would control 
such equipment specially designed for the development, production, 
repair, overhaul, or refurbishing of items controlled in ECCN 7A611 
(except 7A611.y) or commodities in USML Category XII that are not 
enumerated in USML Category XII or controlled by a 600 series ECCN. 
Paragraph .b would control environmental test facilities specially 
designed for certification, qualification, or testing of commodities 
controlled in ECCN 7A611 (except 7A611.y) or commodities in USML 
Category XII that are not enumerated in USML Category XII or a 600 
series ECCN. Paragraph .c would control field test equipment specially 
designed to evaluate or calibrate the operation of systems described in 
USML Category XII(a), (b), or (c). Paragraph .x would control parts, 
components, accessories, and attachments that are specially designed 
for such test, inspection and production equipment that are not 
enumerated on the USML or controlled by another 600 series ECCN. Items 
in ECCN 7B611 would be controlled for NS, RS, AT, and UN reasons.
    BIS did not receive any public comments specific to ECCN 7B611. 
This final rule adopts the proposal to add 7B611 to the CCL, with three 
conforming changes. First, as previously mentioned, this final rule is 
revising references to ``guidance and control'' to just ``guidance.'' 
This final rule makes that change in the heading of the ECCN. Second, 
this final rule adds an MT control for 7B611.a commodities specially 
designed for 7A611.a commodities controlled for MT reasons. This change 
is being made to correspond to the addition of an MT control in 7A611. 
Third, paragraphs .b and .c now specify that those paragraphs control 
items not controlled by another 600 series to bring them into 
conformity with prior language used in other 600 series ECCNs for test, 
inspection, and production equipment.

Establishment of 7D611

    The February 2016 rule proposed adding ECCN 7D611 to control 
software specially designed for the development, production, operation, 
or maintenance of commodities controlled by 7A611 or 7B611. Such 
software would be controlled for NS, RS, AT, and UN reasons. Any 
software added to 7D611.y would be controlled for AT reasons only.
    BIS did not receive any public comments specific to ECCN 7D611. 
Thus, this final rule adopts the proposal to add 7D611 to the CCL with 
one conforming change. This final rule adds an MT control for 7D611.a 
software specially designed for 7A611.a commodities controlled for MT 
reasons. This change is being made to correspond to the addition of an 
MT control in 7A611.

Establishment of 7E611 and Revisions to Sec.  742.6 for Licensing 600 
Series Items

    The February 2016 rule proposed adding ECCN 7E611 to control 
technology required for the development, production, operation, 
installation, maintenance, repair, overhaul, or refurbishing of items 
controlled by 7A611, 7B611, or 7D611. Such technology would be 
controlled for NS, RS, AT, and UN reasons, but certain technology 
described in proposed 7E611.a (technology required for the development 
or production of commodities controlled by proposed 7A611.a-.e) would 
be subject to a worldwide RS reason for control, pursuant to proposed 
text added to Sec.  742.6(a)(8). All other technology in 7E611, other 
than 7E611.y, would be subject to an RS Column 1 control. Any 
technology added to 7E611.y would be controlled for AT reasons only.
    When adding the worldwide RS control to 7E611 in the February 2016 
rule, BIS believed that the worldwide RS control would only affect 
technical data currently controlled in USML Category XII(f) that is not 
eligible for the Canadian exemption under Supplement No. 1 to part 126 
of the ITAR. As described in proposed Sec.  742.6(b)(1), proposed 
7E611.a technology would be subject to the same licensing policy as 
other 600 series items. In addition, License Exception STA would not be 
available for 7E611.a technology but would be available for technology 
in 7E611.b or .c for exports or reexports to Country Group A:5.
    BIS received one public comment pertaining to ECCN 7E611, and that 
commenter supported limiting a worldwide RS control to technology 
proposed to be controlled in 7E611.a. However, by revising 7A611.x so 
that it does not control items described in ECCNs 6A007, 6A107, 7A001, 
7A002, 7A003, 7A101, 7A102, or 7A103, this final rule significantly 
reduces the scope of items in 7A611 and related technology in 7E611. 
Consequently, BIS believes that the proposed worldwide RS control is no 
longer warranted. This final rule removes the worldwide RS control in 
7E611 and Sec.  742.6(a)(8), removes the restriction on the use of 
License Exception STA for Country Group A:5, and restructures the Items 
paragraph to match the normal structure for a 600 series technology 
ECCN. ECCN 7E611.a will control technology required for the 
development, production, operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities or software controlled by ECCN 
7A611 (except 7A611.y), 7B611, or 7D611 (except 7D611.y). ECCN 7E611.y 
will control specific technology required for the production, 
development, operation, installation, maintenance, repair, or overhaul 
of commodities or software controlled by ECCNs 7A611.y or 7D611.y.
    This final rule also adds an MT control for technology for 7E611.a 
technology if required for items controlled for MT reasons in 7A611.a, 
7B611.a, or 7D611.a. This change is being made to correspond to the 
addition of an MT control in 7A611, 7B611, and 7D611.
    BIS received no public comments regarding the description of the 
license requirement for 7E611.a in Sec.  742.6(a)(1) or the revisions 
to Sec.  742.6(b)(1) describing licensing policy for RS Column 1 items 
and ECCN 7E611.a. Consequently, this final rule revises those sections 
consistent with the February 2016 rule.

Revisions to Other Existing ECCNs

    The February 2016 rule proposed to revise many existing dual-use 
ECCNs to provide cross references to USML Category XII for similar 
items subject to the ITAR. BIS received no public comments on the 
proposed changes to the Related Controls paragraphs of those dual-use 
ECCNs. Therefore, this final rule revises the Related Controls to 
cross-reference similar items subject to the ITAR in ECCNs 6A004, 
6A005, 6A007, 6A107, 7A001, 7A002, 7A003, 7A005, 7A101, and 7A102. The 
February 2016 rule also proposed to revise the Related Controls 
paragraph in ECCN 8A002 to refer readers to the potential license 
requirement in Sec.  744.9, which would apply to commodities in 
8A002.d.1.c or .d.2. Since this final rule adopts the proposed increase 
in scope of Sec.  744.9 for 8A002.d items, this final rule also revises 
the Related Controls reference to that section in 8A002.
    BIS also proposed to revise the Related Controls paragraph of ECCN 
2A984, which controls certain concealed object detection equipment. 
This final rule maintains the cross reference to USML Category XII(c) 
for

[[Page 70330]]

related terahertz imaging systems subject to the ITAR, but moves the 
reference to the first sentence of the Related Controls paragraph. 
Additionally, this final rule also revises the scope of control of ECCN 
2A984. The State Department's February 2016 rule proposed to change the 
scope of terahertz imaging systems subject to the ITAR by controlling 
those that have a peak response in the frequency range exceeding 30 GHz 
but not exceeding 3000 GHz, and having a resolution less (better) than 
0.1 milliradians at a standoff range of 100 m. This would have led to 
an inadvertent result where terahertz imaging systems having a peak 
response in the frequency range exceeding 30 GHz but not exceeding 3000 
GHz, and having a resolution of 0.1 to 0.5 milliradians at a standoff 
range of 100 m would be designated EAR99, while less capable terahertz 
imaging systems would be controlled under 2A984. To address this gap, 
this final rule amends the heading of 2A984 to control concealed object 
detection equipment operating in the frequency range from 30 GHz to 
3000 GHz and having a spatial resolution of 0.1 milliradian up to and 
including 1 milliradian at a standoff distance of 100 meters (and parts 
and components not elsewhere specified), and makes conforming changes 
to the related controls section.
    Finally, BIS proposed to revise ECCN 6A008 to add a sentence to the 
Related Controls paragraph for certain laser detection and ranging 
(LADAR), light detection and ranging (LIDAR), or range-gated systems 
subject to the ITAR. One commenter recommended that BIS expand an 
existing sentence in the Related Controls on car radar designed for 
collision avoidance to provide that 6A008 does not control civil 
automotive radar or LIDAR. BIS does not accept this recommendation as 
making this change would require agreement with other Wassenaar 
members. Therefore, this final rule revises the Related Controls 
paragraph as proposed.

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 rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is subject to a penalty for failure to 
comply with, a collection of information, subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid OMB 
control number. This proposed rule would affect two approved 
collections: Simplified Network Application Processing + System 
(control number 0694-0088), which includes, among other things, license 
applications, and License Exceptions and Exclusions (0694-0137).
    As stated in a proposed rule published on July 15, 2011 (76 FR 
41958) (``July 15 proposed rule''), BIS initially believed that the 
combined effect of all rules to be published adding items to the EAR 
that will be removed from the ITAR as part of the Administration's 
Export Control Reform Initiative would increase the number of license 
applications to be submitted by approximately 16,000 annually. As the 
review of the USML has progressed, the interagency group has gained 
more specific information about the number of items that will come 
under BIS jurisdiction and whether those items would be eligible for 
export under license exceptions. As of June 21, 2012, BIS revised that 
estimate to an increase in license applications of 30,000 annually, 
resulting in an increase in burden hours of 8,500 (30,000 transactions 
at 17 minutes each) under control number 0694-0088. BIS continues to 
believe that its revised estimate is accurate.
    Some items formerly on the USML would become eligible for License 
Exception STA under this rule. As stated in the July 15 proposed rule, 
BIS believes that the increased use of License Exception STA resulting 
from the combined effect of all rules to be published adding items to 
the EAR that would be removed from the ITAR as part of the 
Administration's Export Control Reform Initiative would increase the 
burden associated with control number 0694-0137 by about 23,858 hours 
(20,450 transactions at 1 hour and 10 minutes each).
    BIS expects that this increase in burden would be more than offset 
by a reduction in burden hours associated with approved collections 
related to the ITAR. This proposed rule addresses controls on fire 
control, laser, imaging, and guidance and control items. With few 
exceptions, most exports of such items, even when destined to NATO 
member states and other close allies, require State Department 
authorization. In addition, the exports of technology necessary to 
produce such items in the inventories of the United States and its NATO 
and other close allies require State Department authorizations. Under 
the EAR, as proposed, such technology that would be subject to the EAR 
would become eligible for export to NATO member states and other close 
allies under License Exception STA unless otherwise specifically 
excluded. Use of License Exception STA imposes a paperwork and 
compliance burden because, for example, exporters must furnish 
information about the item being exported to the consignee and obtain 
from the consignee an acknowledgement and commitment to comply with the 
EAR. However, the Administration believes that complying with the 
requirements of STA is likely less burdensome than applying for 
licenses. For example, under License Exception STA, a single consignee 
statement can apply to an unlimited number of products, need not have 
an expiration date, and need not be submitted to the government in 
advance for approval. Suppliers with regular customers can tailor a 
single statement and assurance to match their business relationship 
rather than applying repeatedly for licenses with every purchase order 
to supply reliable customers in countries that are close allies or 
members of export control regimes or both.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement

[[Page 70331]]

Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et seq., generally requires 
an agency to prepare a regulatory flexibility analysis of any rule 
subject to the notice and comment rulemaking requirements under the 
Administrative Procedure Act (5 U.S.C. 553) or any other statute, 
unless the agency certifies that the rule will not have a significant 
economic impact on a substantial number of small entities. Under 
section 605(b) of the RFA, however, if the head of an agency (or his or 
her designee) certifies that a rule will not have a significant impact 
on a substantial number of small entities, the statute does not require 
the agency to prepare a regulatory flexibility analysis. Pursuant to 
section 605(b), the Chief Counsel for Regulation, Department of 
Commerce, submitted a memorandum to the Chief Counsel for Advocacy, 
Small Business Administration, certifying that the May 5 proposed rule 
would not have a significant impact on a substantial number of small 
entities. The rationale for that certification was set forth in the 
preamble to that proposed rule. Although BIS received no comments on 
that rationale, and has accordingly made no changes to the proposed 
rule based on the RFA certification, BIS has determined that, in the 
interest of openness and transparency, it will briefly restate the 
rationale behind the certification here.
    This proposed rule is part of the Administration's Export Control 
Reform Initiative, which seeks to revise the USML to a positive list--
one that does not use generic, catch-all controls for items listed--and 
to move some items that the President has determined no longer merit 
control under the ITAR to control under the CCL.
    Although BIS does not collect data on the size of entities that 
apply for and are issued export licenses, and is therefore unable to 
estimate the exact number of small entities--as defined by the Small 
Business Administration's regulations implementing the RFA--BIS 
acknowledges that some small entities may be affected by this proposed 
rule.
    The main effects on small entities resulting from this rule will be 
in application times, costs, and delays in receiving licenses to export 
goods subject to the CCL. However, while small entities may experience 
some costs and time delays for exports due to the license requirements 
of the CCL, these costs and delays will likely be significantly less 
than they were for items previously subject to the USML. BIS believes 
that in fact this rule will result in significantly reduced 
administrative costs and delays for exports of items that will, upon 
this rule's implementation, be subject to the EAR rather than the ITAR. 
Currently, USML applicants must pay to use the USML licensing procedure 
even if they never actually are authorized to export. Registration fees 
for manufacturers and exporters of articles on the USML start at $2,250 
per year, increase to $2,750 for organizations applying for one to ten 
licenses per year and further increases to $2,750 plus $250 per license 
application (subject to a maximum of three percent of total application 
value) for those who need to apply for more than ten licenses per year. 
By contrast, BIS is statutorily prohibited from imposing licensing 
fees. In addition, exporters and reexporters of goods that would become 
subject to the EAR under this rule would need fewer licenses because 
their transactions would become eligible for license exceptions that 
were not available under the ITAR. Additionally, the ITAR controls 
parts and components even when they are incorporated--in any amount--
into a foreign-made product. That limitation on the use of US-made 
goods subject to the ITAR discouraged foreign manufacturers from 
importing US goods. However, the EAR has a de minimis exception for US-
manufactured goods that are incorporated into foreign-made products. 
This exception may benefit small entities by encouraging foreign 
producers to use more US-made items in their goods.
    Even where an exporter or reexporter would need to obtain a license 
under the EAR, that process is both cheaper and more flexible than 
obtaining a license under the ITAR. For example, unlike the ITAR, the 
EAR does not require license applicants to provide BIS with a purchase 
order with the application, meaning that small (or any) entities can 
enter into negotiations or contracts for the sale of goods without 
having to caveat any sale presentations with a reference to the need to 
obtain a license under the ITAR before shipment can occur. Second, the 
EAR allows license applicants to obtain licenses to cover all expected 
exports or reexports to a particular consignee over the life of a 
license, rather than having to obtain a new license for every 
transaction.
    In short, BIS expects that the changes to the EAR proposed in this 
rule will have a positive effect on all affected entities, including 
small entities. While BIS acknowledges that this rule may have some 
cost impacts to small (and other) entities, those costs are more than 
offset by the benefits to the entities from the licensing procedures 
under the EAR, which are much less costly and less time consuming than 
the procedures under the ITAR. Accordingly, the Chief Counsel for 
Regulation for the Department of Commerce has certified that this rule, 
if implemented, will not have a significant economic impact on a 
substantial number of small entities. Accordingly, a regulatory 
flexibility analysis is not required, and none has been prepared.

List of Subjects

15 CFR Part 734

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

15 CFR Part 740

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

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

PART 734--[AMENDED]

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

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 FR 
54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 223; Notice of 
November 12, 2015, 80 FR 70667 (November 13, 2015); Notice of August 
4, 2016, 81 FR 52587 (August 8, 2016).

0
2. Section 734.4 is amended by removing and reserving paragraph (a)(3) 
and revising paragraph (a)(5).
    The revision reads as follows:

Sec.  734.4  De minimis U.S. content.

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

[[Page 70332]]

PART 740--[AMENDED]

0
3. The authority citation for 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
4. Section 740.2 is amended by adding paragraph (a)(7) and removing and 
reserving paragraph (a)(9).
    The addition reads as follows:

Sec.  740.2  Restrictions on All License Exceptions.

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

0
5. Section 740.16 is amended by revising paragraphs (a)(2) and (b)(1) 
through (3) to read as follows:

Sec.  740.16  Additional permissive reexports (APR).

    (a) * * *
    (2) The commodities being reexported are not controlled for NP, CB, 
MT, SI or CC reasons or described in ECCNs 0A919, 3A001.b.2 or b.3 
(except those that are being reexported for use in civil 
telecommunications applications), 6A002, 6A003, or 6A990; and
* * * * *
    (b) * * *
    (1) Eligible commodities may be reexported to and among 
destinations in Country Group A:1 and Hong Kong for use or consumption 
within a destination in Country Group A:1 (see Supplement No. 1 to part 
740) or Hong Kong, or for reexport from such country in accordance with 
other provisions of the EAR.
    (2) Commodities not eligible for reexport under paragraph (b)(1) 
are:
    (i) Commodities controlled for nuclear nonproliferation or missile 
technology reasons;
    (ii) Commodities in 3A001.b.2 or b.3 (except those that are being 
reexported for use in civil telecommunications applications);
    (iii) ``Military commodities'' described in ECCN 0A919;
    (iv) Commodities described in ECCN 0A987 that incorporate an image 
intensifier tube; or
    (v) Commodities described in ECCNs 6A002 or 6A990.
    (3) Cameras described in ECCNs 6A003 may be exported or reexported 
to and among countries in Country Group A:1 (see Supplement No. 1 to 
this part) if:
    (i) Such cameras are fully packaged for use as consumer ready civil 
products; or
    (ii) Such cameras with not more than 111,000 elements are to be 
embedded in civil products.
* * * * *

0
6. Section 740.20 is amended by revising paragraphs (b)(2)(ii) and 
(b)(2)(x), to read as follows:

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

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

PART 742--[AMENDED]

0
7. The authority citation for part 742 continues to read as follows: 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
8. Section 742.6 is amended by revising paragraph (b)(1) to read as 
follows:

 Sec.  742.6  Regional stability.

* * * * *
    (b) * * *
    (1) Licensing policy for RS Column 1 items. (i) Applications for 
exports and reexports of 9x515 and ``600 series'' items will be 
reviewed on a case-by-case basis to determine whether the transaction 
is contrary to the national security or foreign policy interests of the 
United States, including the foreign policy interest of promoting the 
observance of human rights throughout the world. Other applications for 
exports and reexports described in paragraph (a)(1), (2), (6), or (7) 
of this section will be reviewed on a case-by-case basis to determine 
whether the export or reexport could contribute directly or indirectly 
to any country's military capabilities in a manner that would alter or 
destabilize a region's military balance contrary to the foreign policy 
interests of the United States. Applications for reexports of items 
described in paragraph (a)(3) of this section will be reviewed applying 
the policies for similar commodities that are subject to the ITAR. 
Applications for export or reexport of items classified under any 9x515 
or ``600 series'' ECCN requiring a license in accordance with paragraph 
(a)(1) of this section will also be reviewed consistent with United 
States arms embargo policies in Sec.  126.1 of the ITAR if destined to 
a country set forth in Country Group D:5 in Supplement No. 1 to part 
740 of the EAR. Applications for export or reexport of ``parts,'' 
``components,'' ``accessories,'' ``attachments,'' ``software,'' or 
``technology'' ``specially designed'' or otherwise required for the F-
14 aircraft will generally be denied. When destined to the People's 
Republic of China or a country listed in Country Group E:1 in 
Supplement No. 1 to part 740 of the EAR, items classified under any 
9x515 ECCN will be subject to a policy of denial.
    (ii) Applications for exports and reexports to a country listed in 
Country Group D:5 (in Supplement No. 1 to part

[[Page 70333]]

740 of the EAR) of technology controlled under 6E001 for the 
development of focal plane arrays or image intensifier tubes described 
in 6A002, technology controlled under 6E002 for the production of focal 
plane arrays or image intensifier tubes described in 6A002, or 
technology controlled under 6E990 will be reviewed with a presumption 
of denial.
* * * * *

PART 744--[AMENDED]

0
9. The authority citation for part 744 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; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of September 18, 2015, 80 FR 57281 
(September 22, 2015); Notice of November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016).

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

Sec.  744.9  Restrictions on exports, reexports, and transfers (in-
country) of certain cameras, systems, or related components.

    (a) General prohibitions. (1) In addition to the applicable license 
requirements for national security, regional stability, anti-terrorism 
and United Nations embargo reasons in Sec. Sec.  742.4, 742.6, 742.8, 
746.1(b), and 746.3 of the EAR, a license is required to export, 
reexport, or transfer (in-country) to any destination other than Canada 
commodities described in ECCNs 0A987 (incorporating commodities 
controlled by ECCNs 6A002 or 6A003, or commodities controlled by 
6A993.a that meet the criterion of Note 3.a to 6A003.b.4), 6A002, 
6A003, 6A990, or 6A993.a (having a maximum frame rate equal to or less 
than 9 Hz and thus meeting the criteria of Note 3.a to 6A003.b.4), or 
8A002.d if at the time of export, reexport, or transfer, the exporter, 
reexporter, or transferor knows or is informed that the item will be or 
is intended to be:
    (i) Used by a ``military end-user,'' as defined in paragraph (d) of 
this section; or
    (ii) Incorporated into a ``military commodity'' controlled by ECCN 
0A919.
    (2) The license requirement described in paragraph (a)(1) of this 
section does not apply to exports, reexports, or transfers (in-country) 
of items described in that paragraph when such items are being 
reexported or transferred as part of a military deployment by a unit of 
the government of a country in Country Group A:1 (see Supplement No. 1 
to part 740).
    (b) Additional prohibition on exporters, reexporters, or 
transferors informed by BIS. BIS may inform an exporter, reexporter, or 
transferor, either individually by specific notice or through amendment 
to the EAR, that a license is required for the export, reexport, or 
transfer of commodities described in ECCNs 0A987 (incorporating 
commodities controlled by ECCNs 6A002 or 6A003, or commodities 
controlled by 6A993.a that meet the criterion of Note 3.a to 
6A003.b.4), 6A002, 6A003, 6A990, or 6A993.a (having a maximum frame 
rate equal to or less than 9 Hz and thus meeting the criteria of Note 
3.a to 6A003.b.4), or 8A002.d to specified end users, because BIS has 
determined that there is an unacceptable risk of diversion to the users 
or unauthorized incorporation into the ``military commodities'' 
described in paragraph (a) of this section. Specific notice is to be 
given only by, or at the direction of, the Deputy Assistant Secretary 
for Export Administration. When such notice is provided orally, it will 
be followed by a written notice within two working days signed by the 
Deputy Assistant Secretary for Export Administration.
* * * * *

PART 772--[AMENDED]

0
11. The authority citation for part 772 continues to read as follows:

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

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

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

* * * * *
    Specially designed. * * *

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

* * * * *

PART 774--[AMENDED]

0
13. The authority citation for 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).

Supplement No. 1 to Part 774 [Amended]

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

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

List of Items Controlled

* * * * *
Items:

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

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

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

[[Page 70334]]

List of Items Controlled

Related Controls: (1) See USML Category I(f) for riflescopes subject 
to the ITAR that are not night sighting devices. (2) See USML 
Category XII(c) for sighting devices using second generation image 
intensifier tubes having luminous sensitivity greater than 350 
[micro]A/lm, or third generation or higher image intensifier tubes, 
that are subject to the ITAR. (3) See USML Category XII(b) for laser 
aiming or laser illumination systems subject to the ITAR. (4) 
Section 744.9 imposes a license requirement on certain commodities 
described in 0A987 if being exported, reexported, or transferred 
(in-country) for use by a military end-user or for incorporation 
into an item controlled by ECCN 0A919.
* * * * *
Items:
* * * * *
    f. Laser aiming devices or laser illuminators ``specially 
designed'' for use on firearms, and having an operational wavelength 
exceeding 400 nm but not exceeding 710 nm.

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

* * * * *

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

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

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (See supp. No.
                Control(s)                         1 to part 738)
 
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
 

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

CIV: N/A
TSR: N/A

List of Items Controlled

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

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

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

2A984 Concealed object detection equipment operating in the 
frequency range from 30 GHz to 3000 GHz and having a spatial 
resolution of 0.1 milliradian up to and including 1 milliradian at a 
standoff distance of 100 meters; and ``parts'' and ``components,'' 
n.e.s.
* * * * *

List of Items Controlled

Related Controls: (1) Concealed object detection equipment operating 
in the frequency range from 30 GHz to 3000 GHz and having a spatial 
resolution less than 0.1 milliradian (a lower milliradian number 
means a more accurate image resolution) at a standoff distance of 
100 meters is ``subject to the ITAR'' under USML Category XII(c). * 
* *
* * * * *

0
18. In Supplement No. 1 to part 774, Category 6, ECCN 6A002 is amended 
by:
0
a. Removing the ``Special Conditions for STA'' section; and
0
b. Revising the Related Controls paragraph in the List of Items 
Controlled section.
    The revision reads as follows:

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

List of Items Controlled

* * * * *
Related Controls: (1) See USML Category XII(e)for infrared focal 
plane arrays, image intensifier tubes, and related parts and 
components, subject to the ITAR. (2) See USML Category XV(e) for 
space-qualified focal plane arrays subject to the ITAR. (3) See also 
ECCNs 6A102, 6A202, and 6A992. (4) See ECCN 0A919 for foreign-made 
military commodities that incorporate commodities described in 
6A002. (5) Section 744.9 imposes a license requirement on 
commodities described in ECCN 6A002 if being exported, reexported, 
or transferred (in-country) for use by a military end-user or for 
incorporation into an item controlled by ECCN 0A919.
* * * * *

0
19. In Supplement No. 1 to part 774, Category 6, ECCN 6A003 is amended 
by:
0
a. Adding a License Requirement Note in the License Requirements 
section;
0
b. Revising notes 3 and 4 in the Related Controls paragraph in the List 
of Items Controlled section; and
0
c. Adding note 5 to the Related Controls paragraph in the List of Items 
Controlled section.
    The additions and revisions read as follows:

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

License Requirements

* * * * *
License Requirement Note: Commodities that are not subject to the 
ITAR but are of the type described in USML Category XII(c) are 
controlled as cameras in ECCN 6A003 when they incorporate a camera 
controlled in this ECCN.
* * * * *

List of Items Controlled

* * * * *
Related Controls: * * * (3) See ECCN 0A919 for foreign made military 
commodities that incorporate cameras described in 6A003. (4) Section 
744.9 imposes a license requirement on cameras described in 6A003 if 
being exported, reexported, or transferred (in-country) for use by a 
military end-user or for incorporation into a commodity controlled 
by ECCN 0A919. (5) See USML Category XII(c) and (e) for cameras 
subject to the ITAR.
* * * * *

0
20. In Supplement No. 1 to part 774, Category 6, ECCN 6A004 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

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

List of Items Controlled

* * * * *
Related Controls: (1) For optical mirrors or `aspheric optical 
elements' ``specially designed'' for lithography ``equipment,'' see 
ECCN 3B001. (2) See USML Category XII(e) for gimbals ``subject to 
the ITAR.'' (3) See also 6A994.
* * * * *

0
21. In Supplement No. 1 to part 774, Category 6, ECCN 6A005 is amended 
by revising the last two sentences in the Related Controls paragraph in 
the List of Items Controlled section to read as follows:

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

List of Items Controlled

* * * * *
Related Controls: * * * (6) See USML Category XII(b) and (e) for 
laser systems or lasers subject to the ITAR. (7) See USML Category 
XVIII for certain laser-based directed energy weapon systems, 
equipment, and components subject to the ITAR.
* * * * *

0
22. In Supplement No. 1 to part 774, Category 6, ECCN 6A007 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

[[Page 70335]]

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

List of Items Controlled

Related Controls: (1) See USML Category XII(d) for certain gravity 
meters (gravimeters) and gravity gradiometers subject to the ITAR. 
(2) See also ECCNs 6A107, 6A997, and 7A611.
* * * * *

0
23. In Supplement No. 1 to part 774, Category 6, ECCN 6A008 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

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

List of Items Controlled

* * * * *
Related Controls: (1) This entry does not control: Secondary 
surveillance radar (SSR); Car radar designed for collision 
prevention; Displays or monitors used for Air Traffic Control (ATC) 
having no more than 12 resolvable elements per mm; Meteorological 
(weather) radar. (2) See also ECCNs 6A108 and 6A998. ECCN 6A998 
controls, inter alia, the Light Detection and Ranging (LIDAR) 
equipment excluded by the note to paragraph j of this ECCN (6A008). 
(3) See USML Category XII(b) for certain LIDAR, Laser Detection and 
Ranging (LADAR), or range-gated systems subject to the ITAR.
* * * * *

0
24. In Supplement No. 1 to part 774, Category 6, ECCN 6A107 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

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

List of Items Controlled

* * * * *
Related Controls: See USML Category XII(d) for certain gravity 
meters (gravimeters) or gravity gradiometers subject to the ITAR. 
See also ECCN 7A611.
* * * * *

0
25. In Supplement No. 1 to part 774, Category 6, ECCN 6A611 is revised 
to read as follows:

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

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

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

License Requirements

Reason for Control: RS, AT

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

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

LVS: $500
GBS: N/A
CIV: N/A

List of Items Controlled

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

    a. Read-out integrated circuits ``specially designed'' for 
``focal plane arrays'' controlled by 6A002.a.3;

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

    b. [RESERVED]
* * * * *

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

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

List of Items Controlled

* * * * *
Related Controls: (1) See ECCN 0A919 for foreign made military 
commodities that incorporate cameras described in 6A993.a that meet 
the criteria specified in Note 3.a to 6A003.b.4.b (i.e., having a 
maximum frame rate equal to or less than 9 Hz). (2) Section 744.9 
imposes license requirements on cameras described in 6A993.a as a 
result of meeting the criteria specified in Note 3.a to 6A003.b.4.b 
(i.e., having a maximum frame rate equal to or less than 9 Hz) if 
being exported, reexported, or transferred (in-country) for use by a 
military end-user or for incorporation into a commodity controlled 
by ECCN 0A919.
* * * * *

0
28. In Supplement No. 1 to part 774, Category 6, ECCN 6D002 is amended 
by revising the TSR paragraph in the List Based License Exceptions 
section and the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

6D002 ``Software'' ``specially designed'' for the ``use'' of 
equipment controlled by 6A002.b, 6A008 or 6B008.
* * * * *

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

* * * * *
TSR: Yes, except N/A for the following: (1) Items controlled for MT 
reasons; (2) ``Software'' ``specially designed'' for the ``use'' of 
``space qualified'' ``laser'' radar or Light Detection and Ranging 
(LIDAR) equipment defined in 6A008.j.1; or (3) ``Software'' 
``specially designed'' for the ``use'' of commodities controlled by 
6A002.b.

List of Items Controlled

* * * * *
Related Controls: (1) ``Software'' ``specially designed'' for the 
``use'' of ``space-qualified'' LIDAR ``equipment'' ``specially 
designed'' for surveying or for meteorological observation, released 
from control under the note in 6A008.j, is controlled in 6D991. (2) 
See also ECCNs 6D102, 6D991, and 6D992.
* * * * *

0
29. In Supplement No. 1 to part 774, Category 6, ECCN 6D003 is amended 
by revising the TSR paragraph in the List Based License Exceptions 
section and the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

6D003 Other ``software'' as follows (see List of Items Controlled).
* * * * *

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

* * * * *
TSR: Yes, except for 6D003.c and exports or reexports to 
destinations outside of those countries listed in Country Group A:5 
(See Supplement No. 1 to part 740 of the EAR) of ``software'' for 
items controlled by 6D003.a.
* * * * *

List of Items Controlled

* * * * *

[[Page 70336]]

Related Controls: See also ECCNs 6D103, 6D991, and 6D993.
* * * * *

0
30. In Supplement No. 1 to part 774, Category 6, ECCN 6D991 is revised 
to read as follows:

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

License Requirements

Reason for Control: RS, AT

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

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

CIV: N/A
TSR: N/A

List of Items Controlled

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

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

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

6E001 ``Technology'' according to the General Technology Note for 
the ``development'' of equipment, materials or ``software'' 
controlled by 6A (except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996, 
6A997, 6A998, or 6A999.c), 6B (except 6B995), 6C (except 6C992 or 
6C994), or 6D (except 6D991, 6D992, or 6D993).
* * * * *

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

* * * * *
TSR: Yes, except for the following: (1) Items controlled for MT 
reasons; (2) ``Technology'' for commodities controlled by 6A002, 
6A004.e or 6A008.j.1; (3) ``Technology'' for 6A003 cameras, unless 
for ``technology'' for the integration of 6A003 cameras into camera 
systems ``specially designed'' for civil automotive applications; 
(4) ``Technology'' for ``software'' ``specially designed'' for 
``space qualified'' ``laser'' radar or Light Detection and Ranging 
(LIDAR) equipment defined in 6A008.j.1 and controlled by 6D001 or 
6D002; or (5) Exports or reexports to destinations outside of those 
countries listed in Country Group A:5 (See Supplement No. 1 to part 
740 of the EAR) of ``technology'' for the ``development'' of the 
following: (a) Items controlled by 6A001.a.1.b, 6A001.a.1.e, 
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5, 
6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.d, 6A001.a.2.e., 6A004.c, 
6A004.d,, 6A006.a.2, 6A006.c.1, 6A006.d, 6A006.e, 6A008.d, 6A008.h, 
6A008.k, 6B008, or 6D003.a; (b) Equipment controlled by 6A001.a.2.c 
or 6A001.a.2.f when ``specially designed'' for real time 
applications; or (c) ``Software'' controlled by 6D001 and 
``specially designed'' for the ``development'' or ``production'' of 
equipment controlled by 6B008, or 6D003.a.
* * * * *

List of Items Controlled

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

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

6E002 ``Technology'' according to the General Technology Note for 
the ``production'' of equipment or materials controlled by 6A 
(except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, 6A998 or 
6A999.c), 6B (except 6B995) or 6C (except 6C992 or 6C994).
* * * * *

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

* * * * *
TSR: Yes, except for the following:

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

List of Items Controlled

Related Controls: (1) Technical data directly related to satellites 
and all other items described in USML Category XV are subject to the 
ITAR under USML Category XV(f). (2) Technical data directly related 
to laser systems, infrared imaging systems, and all other items 
described in USML Category XII are subject to the ITAR under USML 
Category XII(f). (3) See also 6E992.
* * * * *

0
33. In Supplement No. 1 to part 774, Category 6, ECCN 6E990 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

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

List of Items Controlled

Related Controls: Technical data directly related to read-out 
integrated circuits described in USML Categories XII(e) or XV(e)(3) 
is subject to the ITAR under USML Categories XII(f) or XV(f), 
respectively.

* * * * *

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

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

List of Items Controlled

* * * * *
Related Controls: (1) See USML Category XII(e) for accelerometers 
subject to the ITAR. (2) See also ECCNs 7A101, 7A611, and 7A994. (3) 
For angular or rotational accelerometers, see ECCN7A001.b. (4) MT

[[Page 70337]]

controls do not apply to accelerometers that are ``specially 
designed'' and developed as Measurement While Drilling (MWD) sensors 
for use in downhole well service applications.
* * * * *

0
35. In Supplement No. 1 to part 774, Category 7, ECCN 7A002 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

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

List of Items Controlled

Related Controls: (1) See USML Category XII(e) for gyros or angular 
rate sensors subject to the ITAR. (2) See also ECCNs 7A102, 7A611, 
and 7A994. (3) For angular or rotational accelerometers, see ECCN 
7A001.b.
* * * * *

0
36. In Supplement No. 1 to part 774, Category 7, ECCN 7A003 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section, to read as follows:

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

List of Items Controlled

Related Controls: (1) See also ECCNs 7A103, 7A611, and 7A994. (2) 
See USML Category XII(d) for guidance or navigation systems subject 
to the ITAR.
* * * * *

0
37. In Supplement No. 1 to part 774, Category 7, amend ECCN 7A005 by 
revising the Related Controls paragraph in the List of Items Controlled 
section to read as follows:

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

List of Items Controlled

Related Controls: (1) See also ECCNs 7A105 and 7A994. Typically 
commercially available GNSS receivers do not employ decryption or 
adaptive antennas and are classified as 7A994. (2) See USML Category 
XII(d) for GNSS receiving equipment subject to the ITAR.
* * * * *

0
38. In Supplement No. 1 to part 774, Category 7, ECCN 7A101 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

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

List of Items Controlled

Related Controls: (1) See USML Category XII(e) for accelerometers 
subject to the ITAR. (2) See also ECCNs 7A001 and 7A611. (3) This 
entry does not control accelerometers that are ``specially 
designed'' and developed as MWD (Measurement While Drilling) sensors 
for use in downhole well service operations.
* * * * *

0
39. In Supplement No. 1 to part 774, Category 7, ECCN 7A102 is amended 
by revising the Related Controls paragraph in the List of Items 
Controlled section to read as follows:

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

List of Items Controlled

Related Controls: (1) See USML Category XII(e) for gyros or angular 
rate sensors subject to the ITAR. (2) See also ECCNs 7A002, 7A611, 
and 7A994.
* * * * *

0
40. In Supplement No. 1 to part 774, Category 7, ECCN 7A611 is revised 
to read as follows:

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

License Requirements

Reason for Control: NS, MT, RS, AT, UN

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 7A611.y.  NS Column 1
MT applies to commodities in 7A611.a that   MT Column 1
 meet or exceed the parameters in 7A103.b
 or .c.
RS applies to entire entry except 7A611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7A611.y.  See Sec.   746.1(b) for UN
                                             controls
 

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

LVS: $1500
GBS: N/A
CIV: N/A

Special Conditions for STA

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

List of Items Controlled

Related Controls: (1) Military fire control, laser, imaging, and 
guidance equipment that are enumerated in USML Category XII, and 
technical data (including software) directly related thereto, are 
subject to the ITAR. (2) See Related Controls in ECCNs 0A987, 2A984, 
6A002, 6A003, 6A004, 6A005, 6A007, 6A008, 6A107, 7A001, 7A002, 
7A003, 7A005, 7A101, 7A102, and 7A103. (3) See ECCN 3A611 and USML 
Category XI for controls on countermeasure equipment. (4) See ECCN 
0A919 for foreign-made ``military commodities'' that incorporate 
more than a de minimis amount of U.S. origin ``600 series'' 
controlled content.
Related Definitions: N/A
Items:

    a. Guidance or navigation systems, not elsewhere specified on 
the USML, that are ``specially designed'' for a defense article on 
the USML or for a 600 series item.
    b. to w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments,'' including accelerometers, gyros, angular rate 
sensors, gravity meters (gravimeters), and inertial measurement 
units (IMUs), that are ``specially designed'' for defense articles 
controlled by USML Category XII or items controlled by 7A611, and 
that are NOT:
    1. Enumerated or controlled in the USML or elsewhere within ECCN 
7A611;
    2. Described in ECCNs 6A007, 6A107, 7A001, 7A002, 7A003, 7A101, 
7A102 or 7A103; or
    3. Elsewhere specified in ECCN 7A611.y or 3A611.y.
    y. Specific ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN or a defense article in Category XII and not 
elsewhere specified on the USML or in the CCL, as follows, and 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
``specially designed'' therefor:
    y.1 [RESERVED]

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

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

License Requirements

Reason for Control: AT

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

[[Page 70338]]

License Requirement Notes:

    Typically commercially available GPS do not employ decryption or 
adaptive antenna and are classified as 7A994.

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

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: See 7A005 and 7A105.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *

0
42. In Supplement No. 1 to part 774, Category 7, add ECCN 7B611 between 
ECCNs 7B103 and 7B994 to read as follows:

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

License Requirements

    Reason for Control: NS, MT, RS, AT, UN

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1
MT applies to 7B611.a commodities           MT Column 1
 ``specially designed'' for 7A611.a
 commodities controlled for MT reasons.
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls
 

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

LVS: $1500
GBS: N/A
CIV: N/A

Special Conditions for STA

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

List of Items Controlled

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

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

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

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

License Requirements

Reason for Control: NS, MT, RS, AT, UN

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 7D611.y.  NS Column 1
MT applies to 7D611.a ``software''          MT Column 1
 ``specially designed'' for 7A611.a
 commodities controlled for MT reasons.
RS applies to entire entry except 7D611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7D611.y.  See Sec.   746.1(b) for UN
                                             controls
 

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

CIV: N/A
TSR: N/A

Special Conditions for STA

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

List of Items Controlled

Related Controls: ``Software'' directly related to articles 
enumerated in USML Category XII is subject of USML paragraph XII(f).
Related Definitions: N/A
Items:

    a. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCNs 7A611 (except 7A611.y) or 7B611.
    b. to x. [RESERVED]
    y. Specific ``software'' ``specially designed'' for the 
``development,'' ``production,'' operation, or maintenance of 
commodities described in 7A611.y.

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

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

License Requirements

Reason for Control: NS, MT, RS, AT, UN

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 7E611.y.  NS Column 1
MT applies to ``technology'' in 7E611.a if  MT Column 1
 ``required'' for items controlled for MT
 reasons in 7A611.a, 7B611.a, or 7D611.a.
RS applies to entire entry except 7E611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7E611.y.  See Sec.   746.1(b) for UN
                                             controls
 

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

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any technology in 7E611.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category XII are subject to the control of USML 
Category XII(f).
Related Definitions: N/A
    Items:

    a. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities or ``software'' controlled 
by ECCN 7A611 (except 7A611.y), 7B611, or 7D611 (except 7D611.y).
    b. through .x [RESERVED]
    y. Specific ``technology'' ``required'' for the ``production,'' 
``development,'' operation, installation, maintenance, repair, or 
overhaul of commodities or software controlled by ECCNs 7A611.y or 
7D611.y.

0
45. In Supplement No. 1 to part 774, Category 7, ECCN 7E994 is amended 
by revising the Related Controls paragraph

[[Page 70339]]

in the List of Items Controlled section to read as follows:

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

List of Items Controlled

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

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

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

List of Items Controlled

* * * * *
Related Controls: * * * (5) Section 744.9 imposes a license 
requirement on commodities described in 8A002.d if being exported, 
reexported, or transferred (in-country) for use by a military end-
user or for incorporation into an item controlled by ECCN 0A919.
* * * * *

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

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

List of Items Controlled

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

    Dated: September 15, 2016.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export Administration.
[FR Doc. 2016-24220 Filed 10-11-16; 8:45 am]
 BILLING CODE 3510-33-P