Document ID: BIS-2023-0019-0001
Agency: bis
Document Type: Proposed Rule
Title: Enhancements and Simplification of License Exception Strategic Trade Authorization
Posted Date: 2023-12-08T05:00Z

[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Proposed Rules]
[Pages 85734-85758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26681]

[[Page 85733]]

Vol. 88

Friday,

No. 235

December 8, 2023

Part II

Department of Commerce

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Bureau of Industry and Security

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15 CFR Parts 740 and 774

Proposed Enhancements and Simplification of License Exception Strategic 
Trade Authorization (STA); Proposed Rule

  Federal Register / Vol. 88, No. 235 / Friday, December 8, 2023 / 
Proposed Rules  

[[Page 85734]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 774

[Docket No. 231117-0272]
RIN 0694-AJ32

Proposed Enhancements and Simplification of License Exception 
Strategic Trade Authorization (STA)

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

ACTION: Proposed rule.

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SUMMARY: In this rulemaking, the Bureau of Industry and Security (BIS) 
proposes revising License Exception Strategic Trade Authorization (STA) 
under the Export Administration Regulations (EAR). The purpose of these 
changes is to encourage additional use of License Exception STA for 
ally and partner countries. BIS proposes specific revisions to License 
Exception STA and includes questions for public comment to help BIS 
better understand impediments in using License Exception STA. This 
proposed rule is part of a broader effort announced today that will 
revise several categories of export licensing requirements and the 
availability of export license exceptions for key allied and partner 
countries, as well as for members of certain multilateral export 
control regimes.

DATES: Comments must be received by BIS no later than February 6, 2024.

ADDRESSES: Comments on this rule may be submitted to the Federal 
rulemaking portal (www.regulations.gov). The regulations.gov ID for 
this rule is: BIS-2023-0019. Please refer to RIN 0694-AJ32 in all 
comments.
    All filers using the portal should use the name of the person or 
entity submitting the comments as the name of their files, in 
accordance with the instructions below. Anyone submitting business 
confidential information should clearly identify the business 
confidential portion at the time of submission, file a statement 
justifying nondisclosure and referring to the specific legal authority 
claimed, and provide a non-confidential version of the submission. For 
comments submitted electronically containing business confidential 
information, the file name of the business confidential version should 
begin with the characters ``BC.'' Any page containing business 
confidential information must be clearly marked ``BUSINESS 
CONFIDENTIAL'' on the top of that page. The corresponding non-
confidential version of those comments must be clearly marked 
``PUBLIC.'' The file name of the non-confidential version should begin 
with the character ``P.'' Any submissions with file names that do not 
begin with either a ``BC'' or a ``P'' will be assumed to be public and 
will be made publicly available through https://www.regulations.gov. 
Commenters submitting business confidential information are encouraged 
to scan a hard copy of the non-confidential version to create an image 
of the file, rather than submitting a digital copy with redactions 
applied, to avoid inadvertent redaction errors which could enable the 
public to read business confidential information.

FOR FURTHER INFORMATION CONTACT: For questions on this proposed rule, 
contact Timothy Mooney, Regulatory Policy Division, Office of Exporter 
Services, Bureau of Industry and Security, U.S. Department of Commerce 
at 202-482-2440 or by email: [email protected], please include ``RIN: 
0694-AJ32'' in the subject line.

SUPPLEMENTARY INFORMATION:

I. Background

    In this proposed rule, the Bureau of Industry and Security (BIS) 
describes potential revisions to License Exception Strategic Trade 
Authorization (STA) under the Export Administration Regulations (EAR). 
The purpose of these changes is to encourage additional use of License 
Exception STA for ally and partner countries. This rule proposes 
changes that would: (1) clarify that License Exception STA is not a 
list-based license exception; (2) add text to make it more explicit 
that License Exception STA is eligible for deemed export and deemed 
reexports; (3) exclude deemed exports and deemed reexports from the 
requirement to have been listed on an approved license or other 
approval for ``600 series'' technology; (4) adopt a simpler and 
consistent approach to identify ECCNs eligible for License Exception 
STA; and (5) remove the limitation on the use of License Exception APR 
for reexports between and among certain partner and ally countries to 
reflect their close coordination with the United States on export 
controls.
    This proposed rule also includes seven questions for public comment 
to help BIS better understand why License STA is being underutilized by 
exporters, reexporters, and transferors. BIS also requests comments on 
whether STA eligibility should be expanded or restricted for specific 
items, including for specific ECCNs and welcomes comments on additional 
measures that could further facilitate trade under License Exception 
STA with partner and ally countries.
    This rule includes proposed changes to License Exception STA 
eligibility for ECCNs 1E001 and 2E003.f, which were previously proposed 
in the proposed rule ``Clarifications of Availability and Expansion of 
Restrictions on Availability of License Exception Strategic Trade 
Authorization Under the Export Administration Regulations'' (October 
2021 rule) (see 86 FR 58615 (October 22, 2021)). Because this rule is 
addressing License Exception STA more broadly, such as how items 
excluded from License Exception STA will be identified and the passage 
of time since 2021, BIS is re-proposing these restrictions on the STA 
eligibility for ECCNs 1E001 and 2E003.f. This action will allow for 
public comment on these proposed changes to License Exception STA 
eligibility to help to better inform the current Administration's 
review of License Exception STA eligibility for these two ECCNs. See 
Section VII.B of this rule for additional background on these proposed 
changes. BIS encourages parties that may have commented on the October 
22 rule to review these proposed changes to ECCN 1E001 and 2E003.f, 
along with any other interested parties.

Liberalizing Controls for Allies and Partners

    Historically, the United States has relied on deep connections with 
its allies and partners to protect its vital national security and 
foreign policy interests. In particular, the United States acts in 
close cooperation with its allies and partners to bring together the 
international community to address military aggression, threats to 
sovereignty, and human rights abuses around the world. This is 
especially true in the context of export controls, in which 
multilateral and plurilateral controls are typically the most effective 
path toward accomplishing our national security and foreign policy 
objectives.
    In remarks made on February 4, 2021, regarding America's place in 
the world, President Biden noted that America's alliances are some of 
our greatest assets and that leading with diplomacy means standing 
shoulder to shoulder with and working closely with our allies and key 
partners, thereby protecting the world against nefarious actors. At 
that time, President Biden highlighted the fact that the United States 
would be ``more effective in dealing with Russia when we work in 
coalition and coordination with other like-minded partners.'' (https://
www.whitehouse.gov/briefing-room/speeches-remarks/2021/02/04/remarks-
by-president-biden-on-

[[Page 85735]]

americas-place-in-the-world/). Consistent with this direction, a year 
later following Russia's unjustifiable further invasion of Ukraine and 
Belarus' complicity in that invasion, the United States led formation 
of and continued alignment within the Global Export Controls Coalition 
(GECC), now comprising the United States and 38 other global economies. 
BIS's export controls on Russia and Belarus have been more effective 
because they have been imposed and maintained in coordination with U.S. 
allies and partners. At the same time, in addition to the GECC, BIS has 
forged deeper ally and partner country relationships through a series 
of bilateral and multilateral export controls dialogues, including 
under the auspices of the U.S.-European Union Trade and Technology 
Council (TTC) and the U.S.-Japan Commercial and Industrial Partnership 
(JUCIP).
    The proposed changes with this rule and two other ally and partner 
rules published today are part of a broad effort to liberalize controls 
for allies and partner countries under the EAR (15 CFR parts 730-774). 
Together, these rules will ease several categories of export licensing 
requirements and increase the availability of export license exceptions 
for key allied and partner countries, as well as members of certain 
multilateral export control regimes.

License Exception STA History

    License Exception STA was added to the EAR on June 16, 2011 (76 FR 
35287) as one of the first actions taken under the Export Control 
Reform (ECR) Initiative. This license exception was intended to 
facilitate trade and military interoperability with our closest allies 
and partners by streamlining the controls under the EAR applicable for 
certain items destined for export control partner and ally countries. 
Through two authorizing paragraphs (Sec.  740.20(c)(1) and (2)), 
License Exception STA authorizes exports, reexports, and transfers (in-
country), including deemed exports and deemed reexports for certain 
items. Paragraph (c)(1) authorization is applicable to six reasons for 
control (national security (NS); chemical or biological weapons (CB); 
nuclear nonproliferation (NP); regional stability (RS); crime control 
(CC), and/or significant items (SI)) for countries identified in 
Country Group A:5. Paragraph (c)(2) authorization is available to 
overcome national security (NS) controls for certain ECCNs. As with all 
EAR license exceptions, certain terms and conditions must be met to use 
License Exception STA. In addition, entities that use License Exception 
STA must confirm that none of the general restrictions on the use of 
license exceptions under Sec.  740.2 applies.
    Since 2011, BIS has updated License Exception STA to clarify 
certain requirements. For example, a November 11, 2017, final rule (82 
FR 50511) added various notes to License Exception STA to clarify the 
intent of certain provisions, e.g., the `completing the chain' concept 
for ``600 series'' items, clarifying foreign governments are not 
required to provide a prior consignee statement, and clarifying how 
License Exception STA relates to transfers (in-country). These changes 
helped with public understanding and encouraged some additional usage 
of License Exception STA for ally and partner country transactions.
    BIS has determined that amending License Exception STA to make the 
requirements simpler where possible, while still protecting U.S. 
national security and foreign policy interests, would make License 
Exception STA more beneficial for key allied and partner countries. 
Moreover, it is appropriate to reevaluate the effectiveness of License 
Exception STA and determine how it may be improved to better achieve 
its original objectives, as well as to better reflect the current 
export control environment (e.g., taking into account the significant 
amount of coordination between destinations identified in Country Group 
A:5 in supplement no. 1 to part 740 (Country Groups) and in supplement 
no. 3 to part 746 (Countries Excluded from Certain License Requirements 
of Sec. Sec.  746.6, 746.7, and 746.8)).
    BIS is publishing this rule as a proposed rule to receive comments 
on the proposed changes and to solicit public comments on general 
questions about License Exception STA. BIS particularly seeks input on 
whether any aspect of License Exception STA discourages use of the 
exception. License Exception STA was intended to be used in almost all 
cases when available, and BIS believed at the time License Exception 
STA was added to the EAR that it would be used in almost all cases when 
available. The use of License Exception STA has grown since 2011, but 
it remains persistently underutilized. In fiscal year (FY) 2022, 10% of 
all license applications reviewed by BIS were for transactions eligible 
for license exception STA. With respect to ``600 series'' munitions 
items, in FY 2022, 26% of license applications BIS processed were for 
transactions that were eligible for license exception STA.

Advantages of License Exception STA Over a BIS License

    BIS has set out various evaluation criteria below to compare 
License Exception STA and BIS licenses. BIS has emphasized these points 
since 2011 in explaining to exporters, reexporters, and transferors the 
significant advantages to using License Exception STA compared to using 
a BIS license, with the one exception that License Exception STA does 
not allow for subsequent use of License Exception Additional Permissive 
Reexports (APR) under Sec.  740.16(a) or (b). BIS also welcomes 
comments in response to this proposed rule for commenters to include 
any additional evaluation criteria that may be relevant when 
determining whether to use License Exception STA or a BIS license, in 
particular if those additional evaluation criteria may be why some 
exporters, reexporters, or transferors prefer using BIS licenses over 
License Exception STA when it is available.

------------------------------------------------------------------------
                                License exception
     Evaluation criteria               STA               BIS license
------------------------------------------------------------------------
Quantity authorized.........  No limitation on      Limited to the
                               quantity.             quantity specified
                                                     on the license.
Dollar value authorized.....  No limitation on the  Dollar value is
                               dollar value.         limited to the
                                                     dollar value
                                                     specified on the
                                                     license and may
                                                     only exceed that
                                                     amount when it is
                                                     within the shipping
                                                     tolerance
                                                     provisions under
                                                     Sec.   750.11,
                                                     which generally
                                                     allow for the total
                                                     dollar value stated
                                                     on that license to
                                                     be exceeded by up
                                                     to 10% of the
                                                     dollar value.

[[Page 85736]]

 
Time needed to obtain the     License Exception     Applying for a BIS
 authorization.                STA is a written      license takes time.
                               authorization in      In certain cases,
                               the EAR, so           an applicant may be
                               provided you meet     able to request
                               the terms and         expedited review
                               conditions, License   (BIS licenses do
                               Exception STA could   not generally
                               be used the same      require a purchase
                               day you determine     order), but in most
                               an authorization is   cases the review
                               needed.               process will take
                                                     on average around
                                                     40 calendar days
                                                     from the time the
                                                     license application
                                                     is submitted until
                                                     a final disposition
                                                     is received from
                                                     BIS, with
                                                     processing times
                                                     for some
                                                     applications being
                                                     shorter and some
                                                     taking much longer.
U.S. Government end-use       Consistent with Sec.  Consistent with Sec.
 checks.                         734.11, the U.S.      734.11, the U.S.
                               Government may        Government may
                               request to conduct    request to conduct
                               an end-use check      an end-use check
                               for items received    for items received
                               under License         under a BIS
                               Exception STA,        license. These are
                               regardless of         done prior to a
                               whether or not the    consignee receiving
                               certification         the items as a pre-
                               requirement in Sec.   license check or
                                                     after the items are
                               740.20(d)(2)(viii)    received as a post-
                               applies to the        shipment
                               specific STA          verification.
                               transaction \1\.
Subsequent transfers (in-     An item received      An item received
 country).                     under License         under a BIS license
                               Exception STA may     may only be
                               be transferred (in-   transferred (in-
                               country) without      country) as
                               requiring an EAR      authorized under
                               authorization,        the BIS license.
                               provided there are    Any transfer (in-
                               no part 744 end-use   country), such as
                               or end-user license   to an end user not
                               requirements. This    identified on the
                               concept also          license, would
                               applies to ``600      require a new
                               series'' items, but   license or a
                               the `completing the   separate EAR
                               chain concept' as     authorization. This
                               specified in Note 1   is a significant
                               to paragraphs         disadvantage to
                               (b)(2) and (b)(3)     using a BIS license
                               (which this rule      compared to using
                               would redesignate     License Exception
                               as Note 1 to          STA.\2\
                               paragraph (b)(3))
                               of License
                               Exception STA would
                               need to be
                               completed for a
                               ``600 series'' item
                               received under
                               License Exception
                               STA.
Restrictions on subsequent    Commodities shipped   Unless limited by a
 reexports.                    pursuant to License   condition on the
                               Exception STA may     license regarding
                               not subsequently be   the use of License
                               reexported pursuant   Exception APR, a
                               to paragraphs (a)     BIS license does
                               or (b) of License     not have
                               Exception APR under   limitations on the
                               Sec.   740.16(a) or   use of License
                               (b) \3\.              Exception APR under
                                                     Sec.   740.16(a) or
                                                     (b).
------------------------------------------------------------------------

II. Clarification That License Exception STA Is Not A List-Based 
License Exception, Adding Additional Compliance Guidance on Steps To 
Determine if ECCN Is Excluded
---------------------------------------------------------------------------

    \1\ Note that also consistent with Sec.  734.11, the U.S. 
Government may request to conduct an end-use check for items 
received under any other BIS license exception or No License 
Required (NLR) designated shipments.
    \2\ For example, an exporter is exporting a ``600 series'' item 
to a defense contractor in the U.K. and knows there are three 
additional defense contractors involved in the manufacturing process 
prior to the finished item being provided to the U.S. military. This 
could be authorized under a BIS license instead of using License 
Exception STA, but if an additional U.K. defense contractor needs to 
be added that was not contemplated at the time the license was 
approved, a new license or other EAR license exception would be 
needed. For ``600 series'' items received under License Exception 
STA, as noted in the previous column, no authorization would be 
required to transfer (in-country) to the new entity involved in the 
manufacturing process, provided the `completing the chain' concept 
is still followed for the ``600 series'' item. For other items 
received under License Exception STA, there is no `completing the 
chain' concept, so License Exception STA is even easier to use for 
transfers (in-country).
    \3\ This has historically been one advantage to using a BIS 
license instead of License Exception STA. Today's proposed rule 
proposes narrowing the scope of the License Exception STA 
restriction on use of License Exception APR under Sec.  740.16(a) or 
(b) for destinations identified in both Country Group A:5 and in 
supplement no. 3 to part 746 to put License Exception STA on a more 
equal playing field with BIS licenses in this respect.
---------------------------------------------------------------------------

    In the introductory text to License Exception STA in Sec.  740.20, 
this rule proposes revising the first sentence and adding two new 
sentences at the end. The first sentence would specify that License 
Exception STA is not a list-based license exception. Rather, it is a 
transaction-based license exception. A list-based license exception 
requires reviewing the License Exceptions section in an ECCN and seeing 
an affirmative statement that the list-based license exception is 
available. License Exception STA does not appear under the License 
Exceptions section of any ECCN because it is not a list-based license 
exception; therefore, this additional step is not required for 
determining whether License Exception STA is available. The sentence 
this rule proposes to add will make this point clear for exporters, 
reexporters, and transferors. BIS also welcomes comments on whether it 
would be more beneficial to turn License Exception STA into a list-
based license exception.
    Certain information from an ECCN is used to determine whether 
License Exception STA may be used. For example, the reason(s) for 
control of an ECCN is (are) needed for determining whether an item 
classified under an ECCN may be authorized under License Exception STA. 
In addition, 142 ECCNs contain a Special Conditions STA section, which 
in most cases excludes the use of License Exception STA for an entire 
ECCN or portions of an ECCN for destinations identified in Country 
Group A:6. In 25 of those 142 Special Conditions for STA sections, 
there are exclusions for entire ECCNs or portions of an ECCN for 
destinations in Country Groups A:5 and A:6--meaning License Exception 
STA is not available in any case to authorize those items. As described 
under section V.A, this proposed rule proposes various changes to the 
Special Conditions for STA section in the ECCNs to adopt a simpler and 
consistent approach for excluding ECCNs or certain items under ECCNs 
from License Exception STA, along with proposing conforming changes to 
Sec.  740.20(b)(2).

III. Clarifying License Exception STA Is Eligible for Deemed Exports 
and Deemed Reexports and Excluding Requirement for Recipient To Have 
Been Approved on a Prior U.S. Government Authorization

A. Clarifying STA Is Available for Deemed Exports and Deemed Reexports

    Under the introductory text to Sec.  740.20, this rule proposes 
revising the first sentence and adding a new second sentence to make it 
clear at the beginning of License Exception STA that the license 
exception may be used to authorize deemed exports and deemed reexports. 
BIS still receives questions from exporters, reexporters, and 
transferors on whether License Exception STA may be used to authorize 
deemed exports and deemed reexports, so this step would improve public 
understanding. The current

[[Page 85737]]

introductory text prior to these proposed changes uses the phrase 
``including releases within a single country of software source code 
and technology to foreign nationals,'' which has the same meaning as 
deemed exports and deemed reexports, but to simplify the text, this 
rule proposes removing that text and adding in its place the terms 
deemed exports and deemed reexports. The second new sentence this rule 
would add to the introductory text specifies that for the paragraph (d) 
requirements, only paragraph (d)(4) is applicable for deemed exports 
and deemed reexports. Paragraph (d)(4) already specifies this 
relationship with paragraphs (d)(1) through (3), but this is still a 
common question that BIS receives on the use of License Exception STA.

B. Addition of a General Statement to Part 740 About the Use of EAR 
License Exceptions for Deemed Exports and Deemed Reexports

    In Sec.  740.1 Introduction, this rule proposes adding one sentence 
to the end of paragraph (a) (Scope) to clarify that any license 
exception authorizing exports and reexports of technology also 
authorizes deemed exports and deemed reexports, provided the terms and 
conditions for a release of technology under that license exception are 
met. This rule proposes this sentence to ensure that the scope of 
license exceptions also extends to deemed exports and deemed reexports 
provided the criteria are met. Certain EAR license exceptions are 
available for deemed exports and deemed reexports, such as License 
Exception Technology and software under restriction (TSR) under Sec.  
740.6, but do not include a specific reference to deemed exports and 
deemed reexports. BIS welcomes comments in response to the rule whether 
it would be better to include this proposed sentence in Sec.  740.1 or 
to revise each of the applicable license exception sections in part 740 
to add in a reference to deemed exports and deemed reexports.

C. Excluding Deemed Exports and Deemed Reexports From Note to Paragraph 
(c)(1)

    In Sec.  740.20, this rule proposes adding one sentence to the end 
of the Note to paragraph (c)(1), to specify the note is not applicable 
to deemed exports or deemed reexports authorized under License 
Exception STA under Sec.  740.20(c)(1). BIS originally added the Note 
to paragraph (c)(1) to weed out potential front companies that may have 
tried to receive ``600 series'' items under License Exception STA under 
Sec.  740.20(c)(1). The note to paragraph (c)(1) specified that License 
Exception STA under Sec.  740.20(c)(1) may be used to authorize the 
export, reexport, or transfer (in-country) of ``600 series'' items only 
if the purchaser, intermediate consignee, ultimate consignee, and end 
user have previously been approved on a license or other approval and 
the note identifies the types of licenses or other approvals that are 
acceptable. For most exporters, reexporters, or transferors, this Note 
to paragraph (c)(1) has been easy to comply with and even when an 
exporter, reexporter, or transferor was not able to meet the terms of 
the note, that was easily addressed by applying for a license for that 
transaction. Then once the license was granted, the exporter, 
reexporter, or transferor would meet the terms of the Note to paragraph 
(c)(1) and could use License Exception STA going forward, provided the 
export, reexport, or transfer (in-country) met the other applicable 
terms and conditions for License Exception STA.
    In the deemed export and deemed reexport context for the ``600 
series,'' the application of the Note 1 to paragraph (c)(1) has brought 
about certain unexpected results. First, because the person releasing 
the ``600 series'' technology to the foreign national would be in a 
position to vet the person in most cases as part of the employment with 
the entity making the release, which may include requiring entry into a 
nondisclosure agreement, the concern with a foreign national being an 
unknown entity is significantly less compared to an entity on the other 
side of the world that will be receiving a ``600 series'' item. Second, 
although the entity making a deemed export or deemed reexport could 
also apply for a license if needed initially to address the Note to 
paragraph (c)(1), in most cases once going through the process of 
obtaining a deemed export license from BIS, the entity making the 
deemed export or deemed reexport would likely simply rely on the BIS 
deemed export or deemed reexport license going forward instead of using 
License Exception STA. This would limit the usefulness of License 
Exception STA for authorizing ``600 series'' deemed exports and deemed 
reexports of technology and would not be warranted as a restriction in 
order to protect U.S. national security and foreign policy interests. 
At least in part as a result of this restriction, in FY 2022, BIS 
approved over 60 deemed export or deemed reexport license applications 
for ``600 series'' that would otherwise have been eligible for license 
STA because the recipients were nationals of A:5 countries. For these 
reasons, this rule proposes adding a sentence to the end of the Note to 
paragraph (c)(1) to exclude deemed exports and deemed reexports from 
the scope of this note.
    BIS has provided past regulatory guidance on this question, which 
does mitigate some concern about this Note 1 to paragraph (c)(1) 
discouraging the use of License Exception STA. To make all members of 
the public aware of this past guidance that BIS has provided to other 
deemed exporters and deemed reexporters, BIS includes that guidance 
here on the application of Note 1 to paragraph (c)(1). If the foreign 
person is a bona fide `permanent and regular employee' of an entity 
that has previously been approved as a purchaser, intermediate 
consignee, ultimate consignee, or end user on a license or other 
approval, i.e., Directorate of Defense Trade Controls (DDTC) 
Manufacturing License Agreement (MLA), Technical Assistance Agreement 
(TAA), Warehouse Distribution Agreement (WDA), or General 
Correspondence approval (GC) issued by BIS or DDTC at the U.S. 
Department of State, this would meet the requirement of the Note to 
paragraph (c)(1). For example, if a foreign national that is a bona 
fide ``permanent and regular employee'' of a European software company 
was meeting with a company in the U.S. and ``600 series'' technology or 
software source code was to be released, it would be sufficient for 
purposes of the Note to paragraph (c)(1), that the European software 
company met the scope of the Note to paragraph (c)(1) and this would 
extend to their bona fide ``permanent and regular employee.'' In 
addition, if the foreign national had previously been listed 
individually on a license or other approval, as noted above that would 
be the second route for meeting the scope of the Note to paragraph 
(c)(1) for that foreign national. Note that a foreign person being a 
bona fide ``permanent and regular employee'' of a U.S. entity that 
previously had been listed as an entity on a license or approval, such 
as an approved exporter, is not sufficient to meet the scope of the 
Note to paragraph (c)(1), because the concern in that scenario is with 
the bona fides of the foreign national and not the U.S. entity. BIS 
does note that this guidance will no longer be necessary if the 
proposed change becomes final and effective. BIS encourages as a good 
compliance practice for entities using License Exception STA for deemed 
exports and deemed reexports to have measures in place to vet the 
foreign

[[Page 85738]]

national, such as employment screening and the use of non-disclosure 
agreements. In addition, any deemed export or deemed reexport 
authorized under License Exception STA will need to comply with the 
requirements of paragraph (d)(4) (Requirements for releases of software 
source code or technology within a single country).

V. Simplification of Limitations on Use of License Exception STA Under 
Paragraph (b)(2) and Special Conditions for STA Section in ECCNs

A. Adopting a Simpler and Consistent ECCN Exclusion Approach for 
License Exception STA and Clarifying Relationship Between Sec.  
740.20(b)(2) and Special Conditions for STA Section in ECCNs

    This proposed rule seeks to simplify License Exception STA by 
adopting a simpler and consistent approach for excluding ECCNs from 
License Exception STA. These proposed changes are discussed in this 
Section V.A, which also provides background on the current requirements 
and how these requirements have evolved since 2011. This rule proposes 
changes to enable exporters, reexporters, and transferors to more 
easily, quickly, and consistently determine whether an item is eligible 
for License Exception STA.
    Prior to reviewing the exclusions under Sec.  740.20(b)(2) of 
License Exception STA, the exporter, reexporter, or transferor should 
review the Special Conditions for STA section in the applicable ECCN, 
which may exclude that ECCN or certain items under that ECCN from the 
use of License Exception STA. Substantively, in order to determine if 
an ECCN or certain items under that ECCN is excluded from the use of 
License Exception STA, an exporter, reexporter, or transferor will need 
to confirm that the item is not excluded under the Special Conditions 
for STA section of the ECCN and that the ECCN is not otherwise excluded 
from the use of License Exception STA under Sec.  740.20(b)(2).
    ECCNs as a whole or certain items under an ECCN may be excluded 
from License Exception STA under the Special Conditions for STA section 
of an Export Control Classification Number (ECCN) or under the 
exclusions under Sec.  740.20(b)(2). When License Exception STA was 
originally added to the EAR, the construct was that the Special 
Conditions for STA section would generally be used to exclude certain 
items from License Exception STA for Country Group A:6, and the ECCNs 
exclusions under Sec.  740.20(b)(2) would be used to exclude items 
completely from License Exception STA for Country Groups A:5 and A:6. 
However, over time as eligibility for certain ECCNs has been adjusted 
for License Exception STA, BIS deviated from the general construct for 
excluding ECCNs or certain items under ECCNs, and this has created 
unneeded complexity. This rule proposes changes to adopt a simpler and 
consistent approach for how ECCNs or certain items under ECCNs would be 
excluded from License Exception STA for Country Group A:6 or for 
Country Groups A:5 and A:6.
    For example, in some of the Special Conditions for STA sections in 
ECCNs, BIS started excluding those ECCNs or certain items under those 
ECCNs completely from License Exception STA for Country Groups A:5 and 
A:6 instead of relying on Sec.  740.20(b)(2), which deviates from the 
original construct. In other cases, BIS used both Special Conditions 
for STA sections and Sec.  740.20(b)(2) to exclude ECCNs or certain 
items under those ECCNs completely from License Exception STA for 
Country Groups A:5 and A:6. Each of those variants creates unneeded 
complexity for exporters, reexporters, and transferors trying to 
understand what ECCNs or portions of ECCNs are excluded under License 
Exception STA, in particular if they are looking for a consistent 
construct for how items are being excluded under License Exception STA.
    If either the Special Conditions for STA section or Sec.  
740.20(b)(2) excludes an item from the use of License Exception STA, 
then that item is excluded. However, from a compliance perspective, 
using two different methods, and in certain cases using both methods of 
exclusion, creates unnecessary complexity. This rule would adopt a 
consistent, single construct for how ECCNs or portions of ECCNs are 
excluded from License Exception STA, which should make it easier for 
exporters, reexporters, and transferors to apply this aspect of License 
Exception STA.
    This rule would make the following changes to Sec.  740.20(b)(2) to 
improve this aspect of License Exception STA. In Sec.  740.20(b)(2) 
(Limitations on the Use of License Exception STA), this rule would 
revise the paragraph heading to read as ``Items excluded from the use 
License Exception STA for Country Groups A:5 and A:6.'' This rule 
proposes deleting all of paragraph (b)(2) ECCN exclusions and moving 
those exclusions into the Special Conditions for STA section of the 29 
respective ECCNs, except for existing paragraph (b)(2)(i), and existing 
paragraph (b)(2)(iii), which would be redesignated as paragraph 
(b)(2)(ii). This rule also proposes the removal of the redundant 
paragraph (b)(2)(iv) that specified License Exception STA was not 
available for items subject to the exclusive export control 
jurisdiction of another U.S. Government agency. Paragraph (b)(2)(iv) is 
not needed because Sec.  734.3(b)(1) of the EAR already specifies that 
items subject to the exclusive export control jurisdiction of another 
U.S. Government agency are not subject to the EAR. Paragraph (b)(2) 
would be limited to paragraph (b)(2)(i) specifying that License 
Exception STA may not be used to overcome parts 744 or 746 license 
requirements and paragraph (b)(2)(ii) specifying the reasons for 
control that License Exception STA may not overcome. The remaining 
paragraphs are under paragraph (b)(2) would be removed and added under 
the respective 29 ECCNs.
    The revisions to the 29 ECCNs would consist of revising 10 of the 
ECCNs (0A501, 1E001, 3E001, 6D003, 6E001, 6E002, 9D001, 9D002, 9D004, 
and 9E003), which already include an exclusion for certain portions of 
those ECCNs to exclude certain items under those ECCNs from License 
Exception STA for purposes of Country Group A:6, to identify the 
additional items under those ECCNs that are excluded from License 
Exception STA for both Country Groups A:5 and A:6. This rule also 
proposes revising 19 ECCNs (0A502, 0A503, 0A981, 0A982, 0A983, 0E504, 
0E982, 1C353, 1C354, 1E351, 2E003, 6A002, 6D002, 6D991, 7D004, 9A001, 
9B001, 9E001, 9E002), that do not include a Special Conditions for STA 
section to add an exclusion for those items for License Exception STA 
for purposes of Country Group A:5 and A:6. For 1E001, 2E003, 6D002, 
7D004, 9B001, 9E001, and 9E002, this rule also proposes additional 
restrictions for STA eligibility.
    As a conforming change to these proposed revisions to paragraph 
(b)(2), this rule would redesignate Note 1 to paragraphs (b)(2) and (3) 
as Note 1 to paragraph (b)(3).
    BIS welcomes comments on whether the changes above will make it 
easier for exporters, reexporters, and transferors to use License 
Exception STA. In order to turn License Exception STA into a list-based 
license exception, BIS would remove all of the Special Conditions for 
STA sections in the respective ECCNs and Sec.  740.20(b)(2) and then 
add STA paragraphs under the License Exceptions section to each of 
those respective ECCNs. The new STA paragraphs would positively 
identify the ECCN or ``items'' level paragraphs under those respective 
ECCNs that are eligible for License Exception STA,

[[Page 85739]]

including any applicable exclusions. This would, in certain cases, lead 
to fairly long STA paragraphs, particularly when accounting for the 
differences in STA eligibility between Country Groups A:5 and A:6, 
which may make those provisions harder for exporters, reexporters, and 
transferors to understand.
    Another alternative that BIS welcomes comments on would be to 
remove all of the Special Conditions or STA sections in 142 ECCNs and 
Sec.  740.20(b)(2) and then add two new supplements to Sec.  740.20 
with one supplement identifying items eligible for License Exception 
STA for Country Group A:5 and a second supplement identifying the 
smaller set of only items controlled for National Security (NS) reasons 
that would be eligible for License Exception STA for Country Group A:6. 
Although there could be added complexity in taking either of these 
approaches, both cases would reduce the overall number of steps needed 
to determine if an item was eligible for License Exception STA.
    Lastly, on this aspect of the proposed rule, BIS also welcomes 
comments on any other alternative approaches that the agency may not 
have already described above that could be a better approach for 
identifying which items are eligible for or excluded from License 
Exception STA.

B. Addition of Note to Paragraph (b)(2) To Provide Additional Clarity 
Between the Relationship Between Sec.  740.20(b)(2) and Special 
Conditions for STA Section in ECCNs

    In Sec.  740.20, this rule proposes adding a new Note to paragraph 
(b)(2). This note would provide greater context on the relationship 
between Sec.  740.20(b)(2) and Special Conditions for STA section in 
ECCNs. The note would describe the number of Special Conditions for STA 
sections and the types of items excluded under those ECCNs and clarify 
how these two exclusion methods work together in defining what ECCNs or 
other items under those ECCN are excluded from the use of License 
Exception STA, either for Country Group A:5 and A:6 or for only Country 
Group A:6.

VI. Removal of Limitation on Use of License Exception APR Under 
Paragraphs (a) and (b) for Reexports Between and Among Certain 
Countries To Reflect Their Close Coordination With the United States on 
Export Controls

    In Sec.  740.20(e) (Limitation on subsequent exports, reexports or 
in country transfers), this rule proposes removing the limitation on 
the use of License Exception APR (Sec.  740.16(a) or (b) of the EAR) 
for commodities that have been exported, reexported, or transferred in-
country pursuant to License Exception STA for reexports between and 
among destinations identified in both Country Group A:5 in supplement 
no. 1 to part 740 and supplement no. 3 to part 746 of the EAR (i.e., a 
destination listed in Country Group A:5 but not in supplement no. 3 to 
part 746 would not eligible for using APR). These destinations have 
cooperated closely with the United States on export controls, including 
ensuring appropriate reexport controls were in place on Russia and 
Belarus after Russia's further invasion of Ukraine. Accordingly, given 
their effective dual-use export control systems and use of those 
systems to advance shared national security and foreign policy 
interests, BIS has determined it would be warranted to give these 
destinations more permissive treatment to receive items under License 
Exception APR paragraphs (a) and (b), which prior to this rule, would 
have required a different EAR authorization, such as using License 
Exception STA to authorize the reexport to these destinations or a BIS 
license.
    BIS is aware that the limitation on the use of License Exception 
APR under paragraphs (a) and (b) has for certain reexporters encouraged 
them to continue to prefer receiving items under BIS licenses instead 
of agreeing to receive items under License Exception STA. The change 
this rule would make to paragraph (e) to narrow the scope of the 
License Exception APR restriction for these destinations would be 
consistent with U.S. national security and foreign policy interests and 
is anticipated by BIS to encourage consignees, as well as reexporters 
and transferors in these destinations for reexports between and among 
these destinations, to be more receptive to receiving items under 
License Exception STA, in particular if they have facilities that are 
located in more than one destination located in both Country Group A:5 
and supplement no. 3 to part 746.
    This rulemaking also proposes revisions to paragraph (e) for 
clarity by revising the heading to remove the terms ``exports'' and 
``in country transfer.'' The scope of paragraph (e) is a limitation on 
subsequent reexports, so this rule proposes making this clarification 
in the heading and in the first sentence of paragraph (e) to remove the 
second references to subsequently ``exported'' and ``transferred in 
country.'' Subsequently ``exported'' under License Exception APR is not 
needed because License Exception APR only authorizes reexports and 
transfers (in-country), so inclusion of ``exported'' is not needed and 
may create confusion for exporters, reexporters, and transferors. The 
inclusion of subsequently ``transferred in country'' is also not needed 
in the context of this paragraph. A commodity received under License 
Exception STA may be transferred (in-country) without requiring an EAR 
authorization, provided there is no part 744 end-use or end user 
controls applicable. See Note 1 to paragraph (a) of License Exception 
STA. If the commodity or other item received under License Exception 
STA is a ``600 series'' item, then the `completing the chain' concept 
is applicable (as specified under Note 1 to paragraphs (b)(2) and (3) 
to License Exception STA, which this rule would redesignate as Note 1 
to paragraph (b)(3)), but no additional EAR authorization is required 
for subsequent transfers (in-country), provided the chain is eventually 
completed and there are no applicable part 744 end-use or end user 
controls. Lastly, for clarity, this rule would revise the last sentence 
of paragraph (e) to remove the term ``export'' and add in its place the 
term ``reexport.''

VII. BIS Seeks Public Comments on Scope of ECCNs Eligible for STA

    To assist BIS in assessing whether the scope of ECCNs currently 
eligible for STA meets the objective of STA and U.S. national security 
requirements, BIS seeks public comment on the following issues:
    A. What additional items that are currently not eligible for 
License Exception STA do you believe should have STA eligibility added 
for Country Group A:5 or for both Country Groups A:5 and A:6? 
Commenters should identify specific ECCNs and the rationale for adding 
STA eligibility for Country Group A:5 or both Country Groups A:5 and 
A:6.
    B. What additional items that are currently eligible for License 
Exception STA do you believe should have STA eligibility removed for 
Country Group A:5, for Country Group A:6, or for both Country Groups 
A:5 and A:6? In this rule, the USG is including proposed revisions to 
the License Exception STA eligibility for items under seven ECCNs in 
particular.
    C. This rulemaking proposes specific regulatory revisions to 
further limit STA eligibility for the following ECCNs:
    1. 1E001: The current STA special condition states that License 
Exception STA may not be used to ship or transmit

[[Page 85740]]

``technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment and materials specified 
by ECCNs 1A002, 1C001, 1C007.c, 1C010.c or d or 1C012 to any of the 
destinations listed in Country Group A:6. The proposed revisions to the 
regulatory text for 1E001 would restrict STA eligibility for 1E001 
``technology'' for the ``development'' or ``production'' of items 
specified in ECCNs 1A002; 1C001; 1C007.c or .d; 1C008.a.1; 1C009.b; 
1C010.b, .c or .d; 1C351.a, .b, .c, .d.11, .d.12, .d.14, .d.15, or .e; 
1C353; or 1C354, to any of the destinations listed in Country Group A:5 
or A:6. In addition, the proposed revisions to the regulatory text for 
1E001 would restrict STA eligibility for ``technology'' according to 
the General Technology Note for the ``development'' or ``production'' 
of equipment and materials specified by ECCN 1C012 to any of the 
destinations listed in Country Group A:6.
    2. 2E003: The current 2E003 does not include a Special Conditions 
for STA section. The proposed revisions to the regulatory text for 
2E003 would add a Special Conditions for STA section to restrict STA 
eligibility for ``technology'' according to the General Technology Note 
for 2E003.f when used for the application of inorganic overlay coatings 
on gas turbine engine combustors, or turbine blades, vanes or ``tip 
shrouds,'' to any of the destinations listed in Country Group A:5 or 
A:6.

    Note for proposed changes to 1E001 and 2E003:  As referenced 
under the Section I, BIS requested public comment regarding STA 
eligibility of ECCN 1E001 and 2E003.f in the October 2021 rule. BIS 
received 6 public comments, and the comments were generally not 
supportive of new restrictions on STA eligibility for these two 
ECCNs; however, given the passage of two years and the current 
rule's request for comments on STA eligibility for other ECCNs, BIS 
wants to provide the public another opportunity to submit additional 
comments on 1E001 and 2E003.f, including those six entities that 
submitting comments previously, as well as any other interested 
entities.

    3. 6D002: The current STA special condition in Sec.  740.20(b)(2) 
states that License Exception STA may not be used for ``software'' in 
ECCN 6D002 ``specially designed'' for the ``use'' of commodities 
controlled under 6A002.b, to any of the destinations listed in Country 
Group A:5 or A:6. The proposed revisions to the regulatory text for 
6D002 would restrict STA eligibility for software ``specially 
designed'' for the ''use'' of equipment controlled by 6A008 and 6B008 
to both Country Group A:5 and A:6.
    4. 7D004: The current STA Special condition states that ``License 
Exception STA may not be used to ship or transmit ``software'' in 
7D004.a to .d and .g to any of the destinations listed in Country 
Groups A:6.'' The proposed revisions to the regulatory text in 7D004 
would extend the STA eligibility restriction to Country Group A:5.
    5. 9B001: The current STA Special condition states that ``License 
Exception STA may not be used to ship commodities in 9B001 to any of 
the destinations listed in Country Group A:6.'' The proposed revisions 
to the regulatory text in 9B001 would extend the STA eligibility 
restriction to Country Group A:5.
    6. 9E001: The current STA Special condition states that ``License 
Exception STA may not be used to ship or transmit any technology in 
this entry to any of the destinations listed in Country Group A:6.'' 
The proposed revisions to the regulatory text in 9E001 would extend the 
STA eligibility restriction so that STA would not be able to used to 
ship or transmit any technology in 9E001 for the ``development'' of 
equipment under 9B001 to destinations in Country Group A:5 or A:6.
    7. 9E002: The current STA Special condition states that ``License 
Exception STA may not be used to ship or transmit any technology in 
this entry to any of the destinations listed in Country Group A:6. The 
proposed revisions to the regulatory text in 9E002 would extend the STA 
eligibility restriction so that STA would not be able to used to ship 
or transmit any technology in 9E002 for the ``production'' of equipment 
under 9B001 to destinations in Country Group A:5 or A:6.

    Note:  BIS requested public comment regarding STA eligibility of 
ECCN 9E003.k in the interim final rule which implemented decisions 
from the 2022 Wassenaar Arrangement (WA 2022 rule) (see 88 FR 71932 
(October 18, 2023)); comment period for the WA22 rule closes on 
December 5, 2023. The restrictions BIS proposes for the regulatory 
text of the STA Special Conditions for ECCNs 6D002, 7D004, 9B001, 
9E001, and 9E002 (and 9E003 in the WA 2022 rule) are included solely 
to provide clarity to the public of the potential scope of such 
restrictions to facilitate BIS's receipt of informed comments from 
the regulated public. Such text does not indicate BIS's regulatory 
intent to adopt such restrictions in final form.

    Comments are welcome from the public on the STA eligibility 
restrictions proposed in this rule on ECCNs 1E001, 2E003, 6D002, 7D004, 
9B001, 9E001, 9E002, as well as any other ECCN. As part of these 
comments, BIS welcomes information on the impact such changes would 
have to existing programs and transactions.

VIII. BIS Seeks Public Comments on the Following Additional Questions

    In addition to the questions described above that BIS seeks public 
comments, BIS in this proposed rule also seeks comments on the 
following questions:
    A. What factors contribute to the apparent reluctance of certain 
exporters, reexporters, and transferors to use License Exception STA or 
certain consignees to receive items under License Exception STA?
    B. What changes should be made to the EAR to encourage greater 
usage of License Exception STA?
    C. What changes or clarifications could be made to the information 
required on the prior consignee statement required under Sec.  
740.20(d)(2) for the ``600 series,'' 9x515 ECCNs, and other ECCNs' 
prior consignee statements to facilitate increased usage of License 
Exception STA?
    D. What additional changes could be made to License Exception STA 
to further facilitate exports, reexports, and transfers (in-country) 
between and among destinations identified in both Country Group A:5 in 
supplement no. 1 to part 740 and supplement no. 3 to part 746?
    E. What are the anticipated effects of requiring use of License 
Exception STA under the EAR when eligible, like other EAR license 
exceptions?
    F. Should License Exception STA be a list-based license exception?
    G. What type of additional BIS outreach materials or outreach 
activities could encourage greater usage of License Exception STA?

Rulemaking Requirements

    1. BIS has examined the impact of this rule as required by 
Executive Orders 12866, 13563, and 14094, which direct agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public, health, and safety effects, distributive impacts, and equity). 
This rule is considered a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number.

[[Page 85741]]

    This rule involves the following OMB-approved collections of 
information subject to the PRA:
     0694-0088, ``Multi-Purpose Application,'' which carries a 
burden hour estimate of 29.4 minutes for a manual or electronic 
submission;
     0694-0096 ``Five Year Records Retention Period,'' which 
carries a burden hour estimate of less than 1 minute;
     0694-0122, ``Licensing Responsibilities and Enforcement;'' 
and
     0607-0152 ``Automated Export System (AES) Program,'' which 
carries a burden hour estimate of 3 minutes per electronic submission.
    BIS expects the burden hours associated with these collections to 
decease by 221 hours for an estimated cost decrease of $7,735, which is 
within the estimated burdens and costs of these collections. Additional 
information regarding these collections of information--including all 
background materials--can be found at https://www.reginfo.gov/public/do/PRAMain by using the search function to enter either the title of 
the collection or the OMB Control Number.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of ECRA (50 U.S.C. 4821), this action 
is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requirements for notice of proposed rulemaking, opportunity for public 
participation, and delay in effective date. While section 1762 of ECRA 
provides sufficient authority for such an exemption, this action is 
also independently exempt from these APA requirements because it 
involves a military or foreign affairs function of the United States (5 
U.S.C. 553(a)(1)). However, in order to better inform these regulatory 
changes, BIS is publishing this rule as a proposed rulemaking in order 
to solicit public comments before being published in final form.
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required, and none 
has been prepared.

List of Subjects

15 CFR Part 740

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

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

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

PART 740--LICENSE EXCEPTIONS

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

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

0
2. Section 740.1 is amended by adding a sentence at the end of 
paragraph (a) to read as follows:

Sec.  740.1   Introduction.

* * * * *
    (a) * * * Any license exception authorizing exports and reexports 
of technology also authorizes deemed exports and deemed reexports, 
provided the terms and conditions for a release of technology under 
that license exception are met.
* * * * *
0
3. Section 740.20 is revised to read as follows:

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

    (a) Introduction. This section authorizes exports, reexports, and 
transfers (in-country), including deemed exports and deemed reexports, 
in lieu of a license that would otherwise be required pursuant to part 
742 of the EAR. For purposes of the paragraph (d) requirements, only 
paragraph (d)(4) is applicable for deemed exports and deemed reexports. 
License Exception STA is not a list-based license exception.

    Note 1 to paragraph (a): License Exception STA authorizes 
transfers (in-country) but is only needed to authorize a transfer 
(in-country) when an EAR authorization is required. If a transfer 
(in-country) is not being made under STA, the requirements specified 
in this section do not apply (see Note 1 to paragraph (b)(3) of this 
section for requirements specific to staying within the scope of the 
original License Exception STA authorization and the concept of 
`completing the chain' for purposes of ``600 series'' items 
originally authorized under License Exception STA).

    (b) Requirements and Limitations--(1) Requirements for Using 
License Exception STA.
    (i) All of the reasons for control that impose a part 742 license 
requirement on the export, reexport, or in country transfer must be 
addressed in at least one authorizing paragraph of this section.
    (ii) The party using License Exception STA must comply with all of 
the requirements in paragraph (d) of this section.
    (2) Items excluded from the use License Exception STA for Country 
Groups A:5 and A:6. Items identified under paragraphs (b)(2)(i) and 
(ii) are excluded from License Exception STA for Country Groups A:5 and 
A:6.
    (i) License Exception STA may not be used in lieu of any license 
requirement imposed by ``Part 744--Control Policy: End User and End Use 
Based'' or by ``Part 746--Embargoes and Other Special Controls'' of the 
EAR.
    (ii) License Exception STA may not be used for any item that is 
controlled for reason of encryption items (EI), short supply (SS), 
surreptitious listening (SL), missile technology (MT) or chemical 
weapons (CW);

    Note 2 to paragraph (b)(2):  In addition to the STA exclusions 
identified under paragraph (b)(2), 157 ECCNs on the CCL include 
Special Conditions for STA, which are used to exclude entire ECCNs 
or parts of ECCNs from the use of License Exception STA for 
destinations in Country Group A:6 or Country Group A:5 and A:6. If 
an item is excluded under the Special Conditions section of an ECCN 
or paragraph (b)(2) of this section, the item may not be exported, 
reexported, or transferred (in-country) under License Exception STA 
for that Country Group(s).

    (3) Limitations on the Use of STA that are Specific to ``600 
series'' Items. (i) License Exception STA may not be used for any ``600 
series'' items identified in the relevant ECCN as not being eligible 
for STA.
    (ii) License Exception STA may be used to export, reexport, and 
transfer (in-country) ``600 series'' items to persons, whether non-
governmental or governmental, if they are in and, for natural persons, 
nationals of a country listed in Country Group A:5 (See supplement no. 
1 to part 740 of the EAR) or the United States and if:
    (A) The ultimate end user for such items is the armed forces, 
police, paramilitary, law enforcement, customs, correctional, fire, or 
a search and rescue agency of a government of one of the countries 
listed in Country Group A:5, or the United States Government;
    (B) For the ``development,'' ``production,'' operation, 
installation, maintenance, repair, overhaul, or refurbishing of an item 
in one of the countries listed in Country Group A:5 or the United 
States that will be for one, or more, of the following purposes:
    (1) Ultimately to be used by any such government agencies in one of 
the

[[Page 85742]]

countries listed in Country Group A:5 or the United States Government; 
or
    (2) Sent to a person in the United States and not for subsequent 
export under Sec.  740.9(b)(1) (License Exception TMP for items moving 
in transit through the United States); or
    (C) The United States Government has otherwise authorized the 
ultimate end use, the license or other authorization is in effect, and 
the consignee verifies in writing that such authorization exists and 
has provided the license or other approval identifier to the exporter, 
reexporter, or transferor (as applicable).
    (iii) License Exception STA may not be used to export, reexport, or 
transfer (in-country) end items described in ECCN 0A606.a, ECCN 
8A609.a, ECCN 8A620.a or .b, or ECCN 9A610.a until after BIS has 
approved their export under STA under the procedures set out in Sec.  
740.20(g).
    (iv) License Exception STA may not be used to export, reexport, or 
transfer (in-country) ``600 series'' items if they are ``600 Series 
Major Defense Equipment'' and the value of such items in the contract 
requiring their export exceeds $25,000,000.

    Note 3 to paragraph (b)(3): Any export, reexport, or transfer 
(in-country) originally authorized under License Exception STA must 
stay within the scope of the original authorization. For example, 
for ``600 series'' items authorized under License Exception STA, 
such items must be provided to an eligible ultimate end user, such 
as a Country Group A:5 military, to stay in compliance with the 
original authorization. This requirement for the ``600 series'' is 
referred to as `completing the chain,' meaning regardless of how 
many times the ``600 series'' item is transferred (in-country) or 
whether the ``600 series'' item is incorporated into higher level 
assemblies or other items, the ``600 series'' item must ultimately 
be provided to an eligible ultimate end user, or be otherwise 
authorized under the EAR. This applies regardless of whether the 
``600 series'' item has been incorporated into a foreign-made item 
that may no longer be ``subject to the EAR.'' Because the other 
items eligible for authorization under License Exception STA (9x515 
and other non-600 series ECCNs) do not include the ``600 series'' 
requirements specific to ultimate end user, this `completing the 
chain' concept does not apply to 9x515 and other non-600 series 
ECCNs authorized under License Exception STA. However, the original 
export, reexport, or transfer (in-country) made under License 
Exception STA for 9x515 and other non-600 series ECCNs still must 
comply with the original authorization--meaning the terms and 
conditions of License Exception STA.

    (c) Authorizing paragraphs--(1) Multiple reasons for control. 
Exports, reexports, and transfers (in-country) in which the only 
applicable reason(s) for control is (are) national security (NS); 
chemical or biological weapons (CB); nuclear nonproliferation (NP); 
regional stability (RS); crime control (CC), and/or significant items 
(SI) are authorized for destinations in or nationals of Country Group 
A:5 (See supplement no.1 to part 740 of the EAR).

    Note 4 to paragraph (c)(1).  License Exception STA under Sec.  
740.20(c)(1) may be used to authorize the export, reexport, or 
transfer (in-country) of ``600 series'' items only if the purchaser, 
intermediate consignee, ultimate consignee, and end user have 
previously been approved on a license or other approval, i.e., 
Directorate of Defense Trade Controls (DDTC) Manufacturing License 
Agreement (MLA), Technical Assistance Agreement (TAA), Warehouse 
Distribution Agreement (WDA), or General Correspondence approval 
(GC) issued by BIS or DDTC at the U.S. Department of State. Note to 
paragraph (c)(1) is not applicable to deemed exports or deemed 
reexports authorized under License Exception STA. BIS encourages as 
a good compliance practice for entities using License Exception STA 
to authorize deemed exports and deemed reexports to have measures in 
place to vet the foreign national, such as employment screening and 
the use of non-disclosure agreements. In addition, any deemed export 
or deemed reexport authorized under License Exception STA will need 
to comply with the requirements of paragraph (d)(4) of this section.

    (2) Controls of lesser sensitivity. Exports, reexports, and 
transfers (in-country) in which the only applicable reason for control 
is national security (NS) and the item being exported, reexported, or 
transferred (in-country) is not designated in the STA paragraph in the 
License Exception section of the ECCN that lists the item are 
authorized for destinations in or nationals of Country Group A:6 (See 
supplement no. 1 to this part).
    (d) Conditions--(1) Requirement to furnish Export Control 
Classification Number. (i) The exporter must furnish to the consignee 
the ECCN of each item to be exported pursuant to this section. Once 
furnished to a particular consignee, the ECCN that applies to any item 
need not be refurnished to that consignee at the time the same exporter 
makes an additional export of the same item, if the information remains 
accurate at the time of the additional export.
    (ii) A reexporter or transferor must furnish to subsequent 
consignees the ECCN, provided by the exporter or a prior reexporter or 
transferor, of each item to be reexported or transferred (in-country) 
pursuant to this section. Once furnished to a particular consignee, the 
ECCN that applies to any item need not be refurnished to that consignee 
at the time the same reexporter or transferor makes an additional 
reexport or transfer (in-country) of the same item, if the information 
remains accurate at the time of the additional reexport or transfer 
(in-country).
    (iii) For purposes of determining reexport or transfer eligibility 
under this section, the consignee may rely on the ECCN provided to it 
by the party required to furnish the ECCN under paragraph (d)(1)(i) or 
(ii) of this section unless the consignee knows that the ECCN is 
incorrect or has changed. The word ``knows'' has the same meaning as 
the term ``knowledge'' in Sec.  772.1 of the EAR.
    (2) Prior Consignee Statement. The requirements in this paragraph 
(d)(2) apply to each party using License Exception STA to export, 
reexport, or transfer (in-country), including reexporters and 
transferors of items previously received under License Exception STA. 
The exporter, reexporter, or transferor must obtain the following 
statement in writing from its consignee(s) prior to exporting, 
reexporting, or transferring (in-country) the item and must retain the 
statement in accordance with part 762 of the EAR. One statement may be 
used for multiple exports, reexports, or transfers (in-country) of the 
same items between the same parties so long as the party names, the 
description(s) of the item(s) and the ECCNs are correct. The exporter, 
reexporter, or transferor must maintain a log or other record (such as 
documents created in the ordinary course of business) that identifies 
each shipment made pursuant to this section and the specific consignee 
statement that is associated with each shipment. For purposes of this 
paragraph (d)(2), a log or other record is not required for intangible 
(i.e., electronic or in an otherwise intangible form) exports, 
reexports, or transfers (in-country) made under License Exception STA, 
but an exporter, reexporter, or transferor is required, prior to making 
any export, reexport, or transfer (in-country), to ensure that a prior 
consignee statement has been obtained pursuant to the requirements of 
this paragraph (d)(2). (See Note 1 to paragraph (d)(3) of this section 
for additional guidance on intangible exports, reexports, and transfers 
(in-country), including best practices). Paragraphs (d)(2)(i) through 
(vi) of this section are required for all transactions. In addition, 
paragraph (d)(2)(vii) is required for all transactions in ``600 
series'' items and paragraph (viii) of this section is required for 
transactions in ``600 series'' items if the consignee is not the 
government of a country listed in Country Group A:5 (See supplement no. 
1 to part 740 of the EAR). Paragraph (d)(2)(viii) is also

[[Page 85743]]

required for transactions including 9x515 items.

[INSERT NAME(S) OF CONSIGNEE(S)]:

    (i) Is aware that [INSERT GENERAL DESCRIPTION AND APPLICABLE 
ECCN(S) OF ITEMS TO BE SHIPPED (e.g., aircraft parts and components 
classified under ECCN 9A610)] will be shipped pursuant to License 
Exception Strategic Trade Authorization (STA) in Sec.  740.20 of the 
United States Export Administration Regulations (15 CFR 740.20);
    (ii) Has been informed of the ECCN(s) noted above by [INSERT NAME 
OF EXPORTER, REEXPORTER OR TRANSFEROR];
    (iii) Understands that items shipped pursuant to License Exception 
STA may not subsequently be reexported pursuant to paragraphs (a) or 
(b) of License Exception APR (15 CFR 740.16(a) or (b));
    (iv) Agrees to obtain a prior consignee statement when using 
License Exception STA for any reexport or transfer (in-country) of 
items previously received under License Exception STA;
    (v) Agrees not to export, reexport, or transfer these items to any 
destination, use or user prohibited by the United States' Export 
Administration Regulations;
    (vi) Agrees to provide copies of this document and all other 
export, reexport, or transfer records (i.e., the documents described in 
15 CFR part 762) relevant to the items referenced in this statement to 
the U.S. Government as set forth in 15 CFR 762.7;
    (vii) Understands that License Exception STA may be used to export, 
reexport, and transfer (in-country) ``600 series'' items to persons, 
whether non-governmental or governmental, only if they are in and, for 
natural persons, nationals of a country listed in Country Group A:5 
(See supplement no. 1 to part 740 of the EAR) or the United States and 
if:
    (A) The ultimate end user for such items is the armed forces, 
police, paramilitary, law enforcement, customs, correctional, fire, or 
a search and rescue agency of a government of one of the countries 
listed in Country Group A:5 or the United States Government;
    (B) For the ``development,'' ``production,'' operation, 
installation, maintenance, repair, overhaul, or refurbishing of an item 
in one of the countries listed in Country Group A:5 or the United 
States that will be for one, or more, of the following purposes:
    (1) Ultimately to be used by any such government agencies in one of 
the countries listed in Country Group A:5 or the United States 
Government; or
    (2) Sent to a person in the United States and not for subsequent 
export under Sec.  740.9(b)(1) (License Exception TMP for items moving 
in transit through the United States); or
    (C) The United States Government has otherwise authorized the 
ultimate end use, the license or other authorization is in effect, and 
the consignee verifies in writing that such authorization exists and 
has provided the license or other approval identifier to the exporter, 
reexporter or transferor (as applicable).
    (viii) Agrees to permit a U.S. Government end-use check with 
respect to the items.

[INSERT NAME(S) AND TITLE(S) OF PERSON(S) SIGNING THS DOCUMENT, AND 
DATE(S) DOCUMENT IS SIGNED].

    Note 5 to paragraph (d)(2): When multiple consignees who form a 
network engaged in a production process (or other type of 
collaborative activity, such as joint development) will be receiving 
items under License Exception STA, a single prior consignee 
statement for multiple consignees may be used for any item eligible 
for export, reexport, or transfer (in-country) under License 
Exception STA, provided all of the applicable requirements of 
License Exception STA are met, including those specified in 
paragraph (d)(2).

    Note 6 to paragraph (d)(2): Country Group A:5 and A:6 government 
consignees are not required to sign or provide a prior consignee 
statement.

    (3) Notification to consignee of STA shipment. With each shipment 
under License Exception STA, the exporter (or reexporter or transferor 
as applicable), must notify the consignee in writing that the shipment 
is made pursuant to License Exception STA. The notice must either 
specify which items are subject to License Exception STA or state that 
the entire shipment is made pursuant to License Exception STA. The 
notice must clearly identify the shipment to which it applies. The 
written notice may be conveyed by paper documents or by electronic 
methods such as facsimile or email.

    Note 7 to paragraph (d)(3): While the exporter, reexporter, and 
transferor must furnish the applicable ECCN and obtain a consignee 
statement prior to export, reexport or transfer (in-country) made 
under License Exception STA in accordance with the requirements of 
paragraphs (d)(1) and (d)(2) of this section, intangible (i.e., 
electronic or in an otherwise intangible form) exports, reexports, 
and transfers (in-country) made under License Exception STA are not 
subject to the notification requirements of paragraph (d)(3) of this 
section. However, any export, reexport, or transfer (in-country) 
made under STA must stay within the scope of the original 
authorization.

    (4) Requirements for releases of software source code or technology 
within a single country. Instead of the requirement of paragraphs 
(d)(1) through (d)(3) of this section, the party releasing software 
source code or technology to a national of a country listed in Country 
Group A:5 or A:6 (See supplement no. 1 to this part) must notify the 
recipient of the software source code or technology of the restrictions 
upon further release of the software source code or technology. The 
notification must either expressly inform the recipient that the EAR 
impose limits on further disclosure or must be in the form of an 
agreement in which the recipient agrees to limits on further 
disclosure. Any such agreement must impose limits that are equivalent 
to or more restrictive than all limits on further disclosure that are 
imposed by the EAR. The notification must be in writing and a copy of 
it must be retained by the party making the release and the recipient 
of the release. The notification may be in a separate document or 
included in a document such as a contract or a nondisclosure agreement. 
If the document has an expiration date, it must provide that the 
restrictions on disclosure do not expire.
    (e) Limitation on subsequent reexports. If a commodity has been 
exported, reexported or transferred in-country pursuant to this 
section, it may not be subsequently reexported pursuant to paragraphs 
(a) or (b) of License Exception APR (Sec.  740.16(a) or (b) of the 
EAR), except for reexports between and among destinations identified in 
both Country Group A:5 in supplement no. 1 to this part and supplement 
no. 3 to part 746 of the EAR. Paragraphs (a) and (b) of License 
Exception APR do not authorize reexports of software or technology.
    (f) Applicability of Wassenaar Arrangement reporting requirements. 
See Sec.  743.1 of the EAR for special reporting requirements that 
apply to some exports made pursuant to this section.
    (g) License Exception STA eligibility requests for 9x515 and ``600 
series'' items--(1) Applicability. Any person may request License 
Exception STA eligibility for end items described in ECCN 0A606.a, ECCN 
8A609.a, ECCNs 8A620.a or .b, ``spacecraft'' in ECCNs 9A515.a.1, .a.2, 
.a.3, or .a.4, ``sub-orbital craft,'' or items in 9A515.g, 9A610.a, or 
technology ECCNs 9E515.b, .d, .e, or .f.
    (2) Required information and manner of requests. Requests for 
License Exception STA eligibility must be made via the BIS Simplified 
Network Application Process-Redesign (SNAP-R) system unless BIS 
authorizes

[[Page 85744]]

submission via the paper BIS-748-P Multipurpose Application form. For 
situations in which BIS 748-P submissions may be authorized, see Sec.  
748.1(d)(1). For required information specific to License Exception STA 
eligibility requests, see supplement no. 1 to part 748, Blocks 5 and 6 
and supplement no. 2 to part 748, paragraph (w). In SNAP-R the work 
type for these applications is ``Export.''
    (3) Timeline for USG review. The Departments of Commerce, Defense 
and State will review License Exception STA eligibility requests in 
accordance with the timelines set forth in Executive Order 12981 and 
Sec.  750.4. If the License Exception STA request is approved, the 
process outlined in paragraph (g)(5)(i) of this section is followed.
    (4) Review criteria. The Departments of Commerce, Defense and State 
will determine whether the ``end item'' is eligible for this license 
exception based on an assessment of whether it provides a critical 
military or intelligence advantage to the United States or is otherwise 
available in countries that are not regime partners or close allies. If 
the ``end item'' does not provide a critical military or intelligence 
advantage to the United States or is otherwise available in countries 
that are not regime partners or close allies, the Departments will 
determine that License Exception STA is available unless an overarching 
foreign policy rationale for restricting STA availability can be 
articulated. Consensus among the Departments is required in order for 
an ``end item'' to be eligible for License Exception STA. Such 
determinations are made by the departments' representatives to the 
Advisory Committee on Export Policy (ACEP), or their designees.
    (5) Disposition of License Exception STA eligibility requests --(i) 
Approvals. If the request for STA eligibility is approved, the 
applicant will receive notification from BIS authorizing the use of the 
additional License Exception STA for the specific end items requested. 
This will be in the form of a notice generated by SNAP-R to the 
applicant. Applicants who receive an approval notification may share it 
with companies affiliated with them, such as a branch or distributor, 
and may also take steps to make it public (e.g., on their website) if 
the applicants so wish. In addition, BIS will add a description of the 
approved end item in the relevant ECCN and in an online table posted on 
the BIS website, which removes the restriction on the use of License 
Exception STA for the end item identified in the approved request. BIS 
will publish, as needed, a final rule adding this license exception 
eligibility to the EAR for that ECCN entry or end item.
    (ii) Denials. If the STA eligibility request is not approved, the 
applicant will receive written notification from BIS. This will be in 
the form of a notice generated by SNAP-R to the applicant. Applicants 
may re-submit STA eligibility requests at any time.

PART 774--THE COMMERCE CONTROL LIST

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

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c, 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 
U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783.

0
5. Supplement No. 1 to part 774 is amended by revising ECCNs 0A501, 
0A502, 0A503, 0A981, 0A982, 0A983, 0E504, 0E982, 1C353, 1C354, 1E001, 
1E351, 2E003, 3E001, 6A002, 6D002, 6D003, 6D991, 6E001, 6E002, 7D004, 
9B001, 9D001, 9D002, 9D004, 9E001, 9E002, and 9E003, to read as 
follows:

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

* * * * *
0A501 Firearms (except 0A502 shotguns) and related commodities as 
follows (see List of Items controlled).

License Requirements

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

 
                                              Country chart  (see supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry except 0A501.y.  NS Column 1
RS applies to entire entry except 0A501.y.  RS Column 1
FC applies to entire entry except 0A501.y.  FC Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

    License Requirement Note: In addition to using the Commerce 
Country Chart to determine license requirements, a license is 
required for exports and reexports of ECCN 0A501.y.7 firearms to the 
People's Republic of China.

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

LVS: $500 for 0A501.c, .d, and .x.
$500 for 0A501.c, .d, .e, and .x if the ultimate destination is 
Canada.
GBS: N/A

Special Conditions for STA

STA: License Exception STA may not be used for ECCN 0A501.a, .b, .c, 
.d, or .e, to any of the destinations listed in Country Group A:5 or 
A:6 (See supplement no.1 to part 740 of the EAR). License Exception 
STA may not be used for any item in this entry to any of the 
destinations listed in Country Group A:6 (See Supplement No.1 to 
part 740 of the EAR).

List of Items Controlled

Related Controls: (1) Firearms that are fully automatic, and 
magazines with a capacity of greater than 50 rounds, are ``subject 
to the ITAR.'' (2) See ECCN 0A502 for shotguns and their ``parts'' 
and ``components'' that are subject to the EAR. Also see ECCN 0A502 
for shot-pistols. (3) See ECCN 0A504 and USML Category XII for 
controls on optical sighting devices.
Related Definitions: N/A
Items:

    a. Non-automatic and semi-automatic firearms equal to .50 
caliber (12.7 mm) or less.
    Note 1 to paragraph 0A501.a: `Combination pistols' are 
controlled under ECCN 0A501.a. A `combination pistol' (a.k.a., a 
combination gun) has at least one rifled barrel and at least one 
smoothbore barrel (generally a shotgun style barrel).
    Technical Note to 0A501.a: Firearms described in 0A501.a 
includes those chambered for the .50 BMG cartridge.
    b. Non-automatic and non-semi-automatic rifles, carbines, 
revolvers or pistols with a caliber greater than .50 inches (12.7 
mm) but less than or equal to .72 inches (18.0 mm).
    c. The following types of ``parts'' and ``components'' if 
``specially designed'' for a commodity controlled by paragraph .a or 
.b of this entry, or USML Category I (unless listed in USML Category 
I(g) or (h)): Barrels, cylinders, barrel extensions, mounting blocks 
(trunnions), bolts, bolt carriers, operating rods, gas pistons, 
trigger housings, triggers, hammers/striker, sears, disconnectors, 
pistol grips that contain fire control ``parts'' or ``components'' 
(e.g., triggers, hammers/striker, sears, disconnectors) and 
buttstocks that contain fire control ``parts'' or ``components.''
    Technical Note to 0A501.c: Barrel blanks that have reached a 
stage in manufacturing in which they are either chambered or rifled 
are controlled by 0A501.c.
    d. Detachable magazines with a capacity of 17 to 50 rounds 
``specially designed'' for a commodity controlled by paragraph .a or 
.b of this entry.
    Note 2 to paragraph 0A501.d: Magazines with a capacity of 16 
rounds or less are controlled under 0A501.x; for magazines with a 
capacity greater than 50 rounds, see USML Category I.
    e. Receivers (frames) and ``complete breech mechanisms,'' 
including castings, forgings, stampings, or machined items thereof, 
``specially designed'' for a commodity controlled by paragraph .a or 
.b of this entry.
    Note 3 to 0A501.e: Frames (receivers) under 0A501.e refers to 
any ``part'' or ``component'' of the firearm that has or is

[[Page 85745]]

customarily marked with a serial number when required by law. This 
paragraph 0A501.e is synonymous with a ``part'' or ``component'' 
that is regulated by the Bureau of Alcohol, Tobacco, Firearms and 
Explosives (see 27 CFR parts 447, 478, and 479,) as a firearm.
    f. through w. [Reserved]
    x. ``Parts'' and ``components'' that are ``specially designed'' 
for a commodity classified under paragraphs .a through .c of this 
entry or the USML and not elsewhere specified on the USML or CCL.
    y. Specific ``parts,'' ``components,'' ``accessories'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN or common to a defense article in USML Category 
I and not elsewhere specified in the USML or CCL as follows, and 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
``specially designed'' therefor.
    y.1. Stocks (including adjustable, collapsible, blades and 
braces), grips, handguards, or forends, that do not contain any fire 
control ``parts'' or ``components'' (e.g., triggers, hammers/
striker, sears, disconnectors);
    y.2 to y.5. [Reserved]
    y.6. Bayonets; and
    y.7. Firearms manufactured from 1890 to 1898 and reproductions 
thereof.
    Technical Note 1 to 0A501: The controls on ``parts'' and 
``components'' in ECCN 0A501 include those ``parts'' and 
``components'' that are common to firearms described in ECCN 0A501 
and to those firearms ``subject to the ITAR.''
    Technical Note 2 to 0A501: A receiver with any other controlled 
``part'' or ``component'' (e.g., a barrel (0A501.c), or trigger 
guard (0A501.x), or stock (0A501.y.1)) is still controlled under 
0A501.e.
    Note 4 to 0A501: Antique firearms (i.e., those manufactured 
before 1890) and reproductions thereof, muzzle loading and black 
powder firearms except those designs based on centerfire weapons of 
a post 1937 design, BB guns, pellet rifles, paint ball, and all 
other air rifles are EAR99 commodities.
    Note 5 to 0A501: Muzzle loading and black powder firearms with a 
caliber less than 20 mm that were manufactured post 1937 that are 
used for hunting or sporting purposes that were not ``specially 
designed'' for military use and are not ``subject to the ITAR'' nor 
controlled as shotguns under ECCN 0A502 are EAR99 commodities.
    Note 6 to 0A501: Scope mounts or accessory rails, iron sights, 
sling swivels, and butt plates or recoil pads are designated as 
EAR99. These commodities have been determined to no longer warrant 
being ``specially designed'' for purposes of ECCN 0A501.
    Note 7 to 0A501: A kit, including a replacement or repair kit, 
of firearms ``parts'' or ``components'' customarily sold and 
exported together takes on the classification of the most 
restrictive ``part'' or ``component'' that is included in the kit. 
For example, a kit containing 0A501.y and .x ``parts,'' is 
controlled as a 0A501.x kit because the .x ``part'' is the most 
restrictive ``part'' included in the kit. A complete firearm 
disassembled in a kit form is controlled as a firearm under 0A501.a, 
.b, or .y.7.

0A502 Shotguns; shotguns ``parts'' and ``components,'' consisting of 
complete trigger mechanisms; magazines and magazine extension tubes; 
``complete breech mechanisms;'' except equipment used to slaughter 
domestic animals or used exclusively to treat or tranquilize 
animals, and except arms designed solely for signal, flare, or 
saluting use.

License Requirements

Reason for Control: RS, CC, FC, UN, AT, NS

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
NS applies to shotguns with a barrel        NS Column 1
 length less than 18 inches (45.72 cm).
RS applies to shotguns with a barrel        RS Column 1
 length less than 18 inches (45.72 cm).
FC applies to entire entry................  FC Column 1
CC applies to shotguns with a barrel        CC Column 1
 length less than 24 in. (60.96 cm) and
 shotgun ``components'' controlled by this
 entry regardless of end user.
CC applies to shotguns with a barrel        CC Column 2
 length greater than or equal to 24 in.
 (60.96 cm), regardless of end user.
CC applies to shotguns with a barrel        CC Column 3
 length greater than or equal to 24 in.
 (60.96 cm) if for sale or resale to
 police or law enforcement.
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
AT applies to shotguns with a barrel        AT Column 1
 length less than 18 inches (45.72 cm).
 

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

LVS: $500 for 0A502 shotgun ``parts'' and ``components,'' consisting 
of complete trigger mechanisms; magazines and magazine extension 
tubes. $500 for 0A502 shotgun ``parts'' and ``components,'' 
consisting of complete trigger mechanisms; magazines and magazine 
extension tubes, ``complete breech mechanisms'' if the ultimate 
destination is Canada.
GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any Shotguns with 
barrel length less than 18 inches controlled in 0A502, to any of the 
destinations listed in Country Group A:5 or A:6 (See supplement no.1 
to part 740 of the EAR).

List of Items Controlled

Related Controls: Shotguns that are fully automatic are ``subject to 
the ITAR.''
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Note 1 to 0A502: Shotguns made in or before 1898 are considered 
antique shotguns and designated as EAR99.
    Technical Note: Shot pistols or shotguns that have had the 
shoulder stock removed and a pistol grip attached are controlled by 
ECCN 0A502. Slug guns are also controlled under ECCN 0A502.

0A503 Discharge type arms; non-lethal or less-lethal grenades and 
projectiles, and ``specially designed'' ``parts'' and ``components'' 
of those projectiles; and devices to administer electric shock, for 
example, stun guns, shock batons, shock shields, electric cattle 
prods, immobilization guns and projectiles; except equipment used to 
slaughter domestic animals or used exclusively to treat or 
tranquilize animals, and except arms designed solely for signal, 
flare, or saluting use; and ``specially designed'' ``parts'' and 
``components,'' n.e.s.

License Requirements

Reason for Control: CC, UN

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
CC applies to entire entry................  A license is required for
                                             ALL destinations, except
                                             Canada, regardless of end
                                             use. Accordingly, a column
                                             specific to this control
                                             does not appear on the
                                             Commerce Country Chart.
                                             (See part 742 of the EAR
                                             for additional information)
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
 

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

LVS: N/A
GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any items in 0A503, to 
any of the destinations listed in Country Group A:5 or A:6 (See 
supplement no.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: Law enforcement restraint devices that administer 
an electric shock are controlled under ECCN 0A982. Electronic 
devices that monitor and report a person's location to enforce 
restrictions on movement for law enforcement or penal reasons are 
controlled under ECCN 3A981.

[[Page 85746]]

Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
0A981 Equipment designed for the execution of human beings as 
follows (see List of Items Controlled).

License Requirements

Reason for Control: CC
Control(s): CC applies to entire entry. A license is required for 
ALL destinations regardless of end-use. Accordingly, a column 
specific to this control does not appear on the Commerce Country 
Chart. (See Sec.  742.7 of the EAR for additional information.)

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

LVS: N/A
GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any items in 0A981, to 
any of the destinations listed in Country Group A:5 or A:6 (See 
supplement no.1 to part 740 of the EAR).

List of Items Controlled

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

    a. Gallows and guillotines.
    b. Electric chairs for the purpose of executing human beings.
    c. Air tight vaults designed for the execution of human beings 
by the administration of a lethal gas or substance.
    d. Automatic drug injection systems designed for the execution 
of human beings by administration of a lethal substance.

0A982 Law enforcement restraint devices, including leg irons, 
shackles, and handcuffs; straight jackets; stun cuffs; shock belts; 
shock sleeves; multipoint restraint devices such as restraint 
chairs; and ``specially designed'' ``parts,'' ``components'' and 
``accessories,'' n.e.s.

License Requirements

Reason for Control: CC
Control(s): CC applies to entire entry. A license is required for 
ALL destinations, except Canada, regardless of end-use. Accordingly, 
a column specific to this control does not appear on the Commerce 
Country Chart. (See part 742 of the EAR for additional information.)

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

    LVS: N/A
    GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any items in 0A982, to 
any of the destinations listed in Country Group A:5 or A:6 (See 
supplement no.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: Thumbcuffs and fingercuffs are classified under 
ECCN 0A983, ``specially designed'' implements of torture. Restraint 
devices that electronically monitor or report the location of 
confined persons for law enforcement or penal reasons are controlled 
under ECCN 3A981.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Note to ECCN 0A982. This ECCN applies to restraint devices used 
in law enforcement activities. It does not apply to medical devices 
that are equipped to restrain patient movement during medical 
procedures. It does not apply to devices that confine memory 
impaired patients to appropriate medical facilities. It does not 
apply to safety equipment such as safety belts or child automobile 
safety seats.

0A983 ``Specially designed'' implements of torture, including 
thumbscrews, thumbcuffs, fingercuffs, spiked batons, and ``specially 
designed'' ``parts,'' ``components'' and ``accessories,'' n.e.s.

License Requirements

Reason for Control: CC
Control(s): CC applies to entire entry. A license is required for 
ALL destinations, regardless of end-use. Accordingly, a column 
specific to this control does not appear on the Commerce Country 
Chart. (See part 742 of the EAR for additional information.)

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

LVS: N/A
GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any items in 0A983, to 
any of the destinations listed in Country Group A:5 or A:6 (See 
supplement no.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Note to ECCN 0A983. In this ECCN, ``torture'' has the meaning 
set forth in Section 2340(1) of Title 18, United States Code.
* * * * *
0E504 ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by 0A504 that incorporate a 
focal plane array or image intensifier tube.

License Requirements

Reason for Control: RS, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
AT applies to entire entry................  AT Column 1
 

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

TSR: N/A

Special Conditions for STA

License Exception STA may not be used to ship or transmit any 
``technology'' in 0E504, to any of the destinations listed in 
Country Group A:5 or A:6 (See supplement no.1 to part 740 of the 
EAR).

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
0E982 ``Technology'' exclusively for the ``development'' or 
``production'' of equipment controlled by 0A982 or 0A503.

License Requirements

Reason for Control: CC
Control(s): CC applies to ``technology'' for items controlled by 
0A982 or 0A503. A license is required for ALL destinations, except 
Canada, regardless of end use. Accordingly, a column specific to 
this control does not appear on the Commerce Country Chart. (See 
part 742 of the EAR for additional information.)

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

TSR: N/A

Special Conditions for STA

License Exception STA may not be used to ship or transmit any 
``technology'' in 0E982, to any of the destinations listed in 
Country Group A:5 or A:6 (See supplement no.1 to part 740 of the 
EAR).

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
1C353 Genetic elements and genetically modified organisms, as 
follows (see List of Items Controlled).

License Requirements

Reason for Control: CB, AT

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

    License Requirements Notes:
    1. Vaccines that contain genetic elements or genetically 
modified organisms identified in this ECCN are controlled by ECCN 
1C991.
    2. Unless specified elsewhere in this ECCN 1C353 (e.g., in 
License Requirement Note 1), this ECCN controls genetic elements or 
genetically modified organisms for all biological agents and 
``toxins,'' regardless of quantity or attenuation, that are 
identified in the List of Items Controlled for this ECCN,

[[Page 85747]]

including genetic elements or genetically modified organisms for 
attenuated strains of select biological agents or ``toxins'' that 
are excluded from the lists of select biological agents or 
``toxins'' by the Animal and Plant Health Inspection Service 
(APHIS), U.S. Department of Agriculture, or the Centers for Disease 
Control and Prevention (CDC), U.S. Department of Health and Human 
Services, in accordance with the APHIS regulations in 7 CFR part 331 
and 9 CFR part 121 and the CDC regulations in 42 CFR part 73.

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

LVS: N/A
GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any items in ECCN 
1C353, to any of the destinations listed in Country Group A:5 or A:6 
(See supplement no.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: (1) The Animal and Plant Health Inspection Service 
(APHIS), U.S. Department of Agriculture, and the Centers for Disease 
Control and Prevention (CDC), U.S. Department of Health and Human 
Services, maintain controls on the possession, use, and transfer 
within the United States of certain items controlled by this ECCN, 
including (but not limited to) certain genetic elements, recombinant 
nucleic acids, and recombinant organisms associated with the agents 
or toxins in ECCN 1C351 or 1C354 (for APHIS, see 7 CFR 331.3(c), 9 
CFR 121.3(c), and 9 CFR 121.4(c); for CDC, see 42 CFR 73.3(c) and 42 
CFR 73.4(c)). (2) See 22 CFR part 121, Category XIV(b), for modified 
biological agents and biologically derived substances that are 
subject to the export licensing jurisdiction of the U.S. Department 
of State, Directorate of Defense Trade Controls.
Related Definition: N/A
Items:

    a. Any genetically modified organism that contains, or any 
genetic element that codes for, any of the following:
    a.1. Any gene, genes, translated product or translated products 
specific to any virus controlled by 1C351.a or .b or 1C354.c;
    a.2. Any gene or genes specific to any bacterium controlled by 
1C351.c or 1C354.a, or any fungus controlled by 1C351.e or 1C354.b, 
and which;
    a.2.a. In itself or through its transcribed or translated 
products represents a significant hazard to human, animal or plant 
health; or
    a.2.b. Could endow or enhance pathogenicity; or
    a.3. Any toxins, or their subunits, controlled by 1C351.d.
    b. [Reserved].
    Technical Notes:
    1. Genetically modified organisms include organisms in which the 
nucleic acid sequences have been created or altered by deliberate 
molecular manipulation.
    2. ``Genetic elements'' include, inter alia, chromosomes, 
genomes, plasmids, transposons, vectors, and inactivated organisms 
containing recoverable nucleic acid fragments, whether genetically 
modified or unmodified, or chemically synthesized in whole or in 
part. For the purposes of this ECCN 1C353, nucleic acids from an 
inactivated organism, virus, or sample are considered to be 
'recoverable' if the inactivation and preparation of the material is 
intended or known to facilitate isolation, purification, 
amplification, detection, or identification of nucleic acids.
    3. This ECCN does not control nucleic acid sequences of shiga 
toxin producing Escherichia coli of serogroups O26, O45, O103, O104, 
O111, O121, O145, O157, and other shiga toxin producing serogroups, 
other than those genetic elements coding for shiga toxin, or for its 
subunits.
    4. `Endow or enhance pathogenicity' is defined as when the 
insertion or integration of the nucleic acid sequence or sequences 
is/are likely to enable or increase a recipient organism's ability 
to be used to deliberately cause disease or death. This might 
include alterations to, inter alia: virulence, transmissibility, 
stability, route of infection, host range, reproducibility, ability 
to evade or suppress host immunity, resistance to medical 
countermeasures, or detectability.
* * * * *
1C354 Plant pathogens, as follows (see List of Items Controlled).

License Requirements

Reason for Control: CB, AT

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

    License Requirements Notes:
    1. All vaccines are excluded from the scope of this ECCN. See 
ECCN 1C991 for vaccines.
    2. Unless specified elsewhere in this ECCN 1C354 (e.g., in 
License Requirement Note 1), this ECCN controls all biological 
agents, regardless of quantity or attenuation, that are identified 
in the List of Items Controlled for this ECCN, including small 
quantities or attenuated strains of select biological agents that 
are excluded from the list of PPQ select agents and ``toxins'' by 
the Animal and Plant Health Inspection Service (APHIS), U.S. 
Department of Agriculture, in accordance with their regulations in 7 
CFR part 331.

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

LVS: N/A
GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any items in ECCN 
1C354, to any of the destinations listed in Country Group A:5 or A:6 
(See supplement no.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: (1) The Animal and Plant Health Inspection Service 
(APHIS), U.S. Department of Agriculture, maintains controls on the 
possession, use, and transfer within the United States of certain 
items controlled by this ECCN (see 7 CFR 331.3(c), 9 CFR 121.3(c), 
and 9 CFR 121.4(c)). (2) See 22 CFR part 121, Category XIV(b), for 
modified biological agents and biologically derived substances that 
are subject to the export licensing jurisdiction of the U.S. 
Department of State, Directorate of Defense Trade Controls.
Related Definitions: N/A
Items:

    a. Bacteria, as follows:
    a.1. Xanthomonas albilineans;
    a.2. Xanthomonas citri pv. citri (Xanthomonas axonopodis pv. 
citri, Xanthomonas campestris pv. citri);
    a.3. Xanthomonas oryzae [this species of proteobacteria is 
identified on the APHIS ``select agents'' list (see Related Controls 
paragraph for this ECCN), but only the pathovar Xanthomonas oryzae 
pv. oryzae (syn. Pseudomonas campestris pv. oryzae) is identified on 
the Australia Group (AG) ``List of Plant Pathogens for Export 
Control''];
    a.4. Clavibacter michiganensis subsp. sepedonicus (Clavibacter 
sepedonicus, Clavibacter michiganense subsp. sepedonicus, 
Corynebacterium michiganensis subsp. sepedonicum, Corynebacterium 
sepedonicum);
    a.5. Ralstonia solanacearum, race 3, biovar 2;
    a.6. Raythayibactor toxicus [this bacterium is identified on the 
APHIS ``select agents'' list (see the Related Controls paragraph for 
this ECCN), but is not identified on the Australia Group (AG) ``List 
of Plant Pathogens for Export Control''].
    b. Fungi, as follows:
    b.1. Bipolaris oryzae (Cochliobolus miyabeanus, Helminthosporium 
oryzae);
    b.2. Colletotrichum kahawae (Colletotrichum coffeanum var. 
virulans);
    b.3. Pseudocercospora ulei (Microcyclus ulei, Dothidella ulei);
    b.4. Puccinnia graminis ssp. graminis var. graminis/Puccinia 
graminis ssp. graminis var. stakmanii (Puccinia graminis [syn. 
Puccinia graminis f. sp. tritici]);
    b.5. Puccinia striiformis (syn. Puccinia glumarum);
    b.6. Magnaporthe oryzae (Pyricularia oryzae);
    b.7. Peronosclerospora philippinensis (Peronosclerospora 
sacchari);
    b.8. Sclerophthora rayssiae var. zeae;
    b.9. Synchytrium endobioticum;
    b.10. Tilletia indica;
    b.11. Thecaphora solani;
    b.12. Phoma glycinicola (formerly Pyrenochaeta glycines) [this 
fungus is identified on the APHIS ``select agents'' list (see the 
Related Controls paragraph for this ECCN), but is not identified on 
the Australia Group (AG) ``List of Plant Pathogens for Export 
Control''].
    c. Viruses, as follows:
    c.1. Andean potato latent virus (Potato Andean latent 
tymovirus);
    c.2. Potato spindle tuber viroid.

1E001 ``Technology'' according to the General Technology Note for 
the ``development'' or ``production'' of items controlled by 1A002, 
1A003, 1A004, 1A005, 1A006.b, 1A007, 1A008, 1A101,

[[Page 85748]]

1A231, 1B (except 1B608, 1B613 or 1B999), or 1C (except 1C355, 
1C608, 1C980 to 1C984, 1C988, 1C990, 1C991, 1C995 to 1C999).

License Requirements

Reason for Control: NS, MT, NP, CB, RS, AT

 
                                              Country chart  (see supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to ``technology'' for items      NS Column 1
 controlled by 1A002, 1A003, 1A005,
 1A006.b, 1A007, 1B001 to 1B003, 1B018,
 1C001 to 1C011, or 1C018.
NS applies to ``technology'' for items      NS Column 2
 controlled by 1A004.
MT applies to ``technology'' for items      MT Column 1
 controlled by 1A101, 1B001, 1B101, 1B102,
 1B115 to 1B119, 1C001, 1C007, 1C011,
 1C101, 1C102, 1C107, 1C111, 1C116, 1C117,
 or 1C118 for MT reasons.
NP applies to ``technology'' for items      NP Column 1
 controlled by 1A002, 1A007, 1A231, 1B001,
 1B101, 1B201, 1B225, 1B226, 1B228 to
 1B234, 1C002, 1C010, 1C111, 1C116, 1C202,
 1C210, 1C216, 1C225 to 1C237, or 1C239 to
 1C241 for NP reasons.
CB applies to ``technology'' for items      CB Column 1
 controlled by 1C351, 1C353, or 1C354.
CB applies to ``technology'' for materials  CB Column 2
 controlled by 1C350 and for chemical
 detection systems and dedicated detectors
 therefor, in 1A004.c, that also have the
 technical characteristics described in
 2B351.a.
RS applies to technology for equipment      RS Column 2
 controlled in 1A004.d.
AT applies to entire entry................  AT Column 1
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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; or
    (2) Exports and 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'' or 
production'' of the following:
    (a) Items controlled by 1C001; or
    (b) Items controlled by 1A002.a which are composite structures 
or laminates having an organic ``matrix'' and being made from 
materials listed under 1C010.c or 1C010.d.

Special Conditions for STA

License Exception STA may not be used to ship or transmit ECCN 1E001 
``technology'' for the ``development'' or ``production'' of items 
specified in ECCNs 1A002; 1C001; 1C007.c or .d; 1C008.a.1; 1C009.b; 
1C010.b, .c or .d; 1C351.a, .b, .c, .d.11, .d.12, .d.14, .d.15, or 
.e; 1C353; or 1C354, to any of the destinations listed in Country 
Group A:5 or A:6 (See supplement no.1 to part 740 of the EAR). 
License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of equipment and materials 
specified by ECCN 1C012 to any of the destinations listed in Country 
Group A:6 (See Supplement No.1 to part 740 of the EAR).

List of Items Controlled

Related Controls (1) Also see ECCNs 1E101, 1E201, and 1E202. (2) See 
ECCN 1E608 for ``technology'' for items classified under ECCN 1B608 
or 1C608 that, immediately prior to July 1, 2014, were classified 
under ECCN 1B018.a or 1C018.b through .m (note that ECCN 1E001 
controls ``development'' and ``production'' ``technology'' for 
chlorine trifluoride controlled by ECCN 1C111.a.3.f--see ECCN 1E101 
for controls on ``use'' ``technology'' for chlorine trifluoride). 
(3) See ECCN 1E002.g for control libraries (parametric technical 
databases) ``specially designed'' or modified to enable equipment to 
perform the functions of equipment controlled under ECCN 1A004.c 
(Nuclear, biological and chemical (NBC) detection systems) or ECCN 
1A004.d (Equipment for detecting or identifying explosives 
residues). (4) ``Technology'' for lithium isotope separation (see 
related ECCN 1B233) and ``technology'' for items described in ECCN 
1C012 are subject to the export licensing authority of the 
Department of Energy (see 10 CFR part 810). (5) ``Technology'' for 
items described in ECCN 1A102 is ``subject to the ITAR'' (see 22 CFR 
parts 120 through 130).
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
1E351 ``Technology'' according to the General Technology Note for 
the disposal of chemicals or microbiological materials controlled by 
1C350, 1C351, 1C353, or 1C354.

License Requirements

Reason for Control: CB, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
CB applies to ``technology'' for items      CB Column 1
 controlled by 1C351, 1C353, or 1C354.
CB applies to ``technology'' for the        CB Column 2
 disposal of items controlled by 1C350.
AT applies to entire entry................  AT Column 1
 

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

TSR: N/A
License Exception STA may not be used to ship or transmit 
``technology,'' as specified in ECCN 1E351, to any of the 
destinations listed in Country Group A:5 or A:6 (See supplement no.1 
to part 740 of the EAR).

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
2E003 Other ``technology'', as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, AT

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

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

TSR: Yes, except 2E003.b, .e and .f

Special Conditions for STA

License Exception STA may not be used to ship or transmit any 
``technology'' according to the General Technology Note for 2E003.f 
when used for the application of inorganic overlay coatings on gas 
turbine engine combustors, or turbine blades, vanes or ``tip 
shrouds,'' to any of the destinations listed in Country Group A:5 or 
A:6 (See supplement no.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: See 2E001, 2E002, and 2E101 for ``development'' 
and ``use'' technology for equipment that are designed or modified 
for densification of carbon-carbon composites, structural composite

[[Page 85749]]

rocket nozzles and reentry vehicle nose tips.
Related Definitions: N/A
Items:

    a. [Reserved]
    b. ``Technology'' for metal-working manufacturing processes, as 
follows:
    b.1. ``Technology'' for the design of tools, dies or fixtures 
``specially designed'' for any of the following processes:
    b.1.a. ``Superplastic forming'';
    b.1.b. ``Diffusion bonding''; or
    b.1.c. 'Direct-acting hydraulic pressing';
    b.2. [Reserved]
    N.B.: For ``technology'' for metal-working manufacturing 
processes for gas turbine engines and components, see 9E003 and USML 
Category XIX
    Technical Note: For the purposes of 2E003.b.1.c, 'direct-acting 
hydraulic pressing' is a deformation process which uses a fluid-
filled flexible bladder in direct contact with the workpiece.
    c. ``Technology'' for the ``development'' or ``production'' of 
hydraulic stretch-forming machines and dies therefor, for the 
manufacture of airframe structures;
    d. [Reserved]
    e. ``Technology'' for the ``development'' of integration 
``software'' for incorporation of expert systems for advanced 
decision support of shop floor operations into ``numerical control'' 
units;
    f. ``Technology'' for the application of inorganic overlay 
coatings or inorganic surface modification coatings (specified in 
column 3 of the following table) to non-electronic substrates 
(specified in column 2 of the following table), by processes 
specified in column 1 of the following table and defined in the 
Technical Note.
    N.B. This table should be read to control the technology of a 
particular 'Coating Process' only when the resultant coating in 
column 3 is in a paragraph directly across from the relevant 
'Substrate' under column 2. For example, Chemical Vapor Deposition 
(CVD) 'coating process' control the ``technology'' for a particular 
application of 'silicides' to 'Carbon-carbon, Ceramic and Metal 
``matrix'' ``composites'' substrates, but are not controlled for the 
application of 'silicides' to 'Cemented tungsten carbide (16), 
Silicon carbide (18)' substrates. In the second case, the resultant 
coating is not listed in the paragraph under column 3 directly 
across from the paragraph under column 2 listing 'Cemented tungsten 
carbide (16), Silicon carbide (18)'.
* * * * *
3E001 ``Technology'' according to the General Technology Note for 
the ``development'' or ``production'' of commodities controlled by 
3A (except 3A980, 3A981, 3A991, 3A992, or 3A999), 3B (except 3B991 
or 3B992) or 3C (except 3C992).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for            NS Column 1
 commodities controlled by 3A001, 3A002,
 3A003, 3B001, 3B002, or 3C001 to 3C006.
MT applies to ``technology'' for            MT Column 1
 commodities controlled by 3A001 or 3A101
 for MT reasons.
NP applies to ``technology'' for            NP Column 1
 commodities controlled by 3A001, 3A201,
 or 3A225 to 3A234 for NP reasons.
RS applies to ``technology'' for            China and Macau (See Sec.
 commodities controlled by 3A090 or 3B090    742.6(a)(6))
 or ``software'' specified by 3D001 (for
 3A090 or 3B090 commodities).
RS applies to ``technology'' for            Worldwide (See Sec.
 commodities controlled in 3A090, when       742.6(a)(6))
 exported from China or Macau.
AT applies to entire entry................  AT Column 1
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, Special Comprehensive Licenses, and 
Validated End-User authorizations.

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

TSR: Yes, except N/A for MT, and ``technology'' for the 
``development'' or ``production'' of: (a) vacuum electronic device 
amplifiers described in 3A001.b.8, having operating frequencies 
exceeding 19 GHz; (b) solar cells, coverglass-interconnect-cells or 
covered-interconnect-cells (CIC) ``assemblies'', solar arrays and/or 
solar panels described in 3A001.e.4; (c) ``Monolithic Microwave 
Integrated Circuit'' (``MMIC'') amplifiers in 3A001.b.2; and (d) 
discrete microwave transistors in 3A001.b.3.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology,'' as specified in ECCN 3E001 for the ``production'' or 
``development'' of commodities controlled by 3A001.b.2 or b.3, to 
any of the destinations listed in Country Group A:5 or A:6 (See 
supplement no.1 to part 740 of the EAR). License Exception STA may 
not be used to ship or transmit ``technology'' according to the 
General Technology Note for the ``development'' or ``production'' of 
equipment specified by ECCNs 3A002.g.1 or 3B001.a.2 to any of the 
destinations listed in Country Group A:6 (See Supplement No. 1 to 
part 740 of the EAR).

List of Items Controlled

Related Controls: (1) ``Technology'' according to the General 
Technology Note for the ``development'' or ``production'' of certain 
``space-qualified'' atomic frequency standards described in Category 
XV(e)(9), MMICs described in Category XV(e)(14), and oscillators 
described in Category XV(e)(15) of the USML are ``subject to the 
ITAR'' (see 22 CFR parts 120 through 130). See also 3E101, 3E201 and 
9E515. (2) ``Technology'' for ``development'' or ``production'' of 
``Microwave Monolithic Integrated Circuits'' (``MMIC'') amplifiers 
in 3A001.b.2 is controlled in this ECCN 3E001; 5E001.d refers only 
to that additional ``technology'' ``required'' for 
telecommunications.
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Note 1: 3E001 does not control ``technology'' for equipment or 
``components'' controlled by 3A003.
    Note 2: 3E001 does not control ``technology'' for integrated 
circuits controlled by 3A001.a.3 to a.14, having all of the 
following:
    (a) Using ``technology'' at or above 0.130 [mu]; and
    (b) Incorporating multi-layer structures with three or fewer 
metal layers.
    Note 3: 3E001 does not apply to 'Process Design Kits' ('PDKs') 
unless they include libraries implementing functions or technologies 
for items specified by 3A001.
    Technical Note: A 'Process Design Kit' ('PDK') is a software 
tool provided by a semiconductor manufacturer to ensure that the 
required design practices and rules are taken into account in order 
to successfully produce a specific integrated circuit design in a 
specific semiconductor process, in accordance with technological and 
manufacturing constraints (each semiconductor manufacturing process 
has its particular 'PDK').
* * * * *
6A002 Optical Sensors and Equipment, and ``Components'' Therefor, as 
Follows (see List of Items Controlled).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 2

[[Page 85750]]

 
MT applies to optical detectors in          MT Column 1
 6A002.a.1, or a.3 that are ``specially
 designed'' or modified to protect
 ``missiles'' against nuclear effects
 (e.g., Electromagnetic Pulse (EMP), X-
 rays, combined blast and thermal
 effects), and usable for ``missiles''.
RS applies to 6A002.a.1, a.2, a.3 (except   RS Column 1
 a.3.d.2.a and a.3.e for lead selenide
 based focal plane arrays (FPAs)), .c, and
 .f.
CC applies to police-model infrared         CC Column 1
 viewers in 6A002.c.
AT applies to entire entry................  AT Column 1
UN applies to 6A002.a.1, a.2, a.3 and .c..  See Sec.   746.1(b) for UN
                                             controls
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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

LVS: $500 for 6A002.f.
    $3,000; except N/A for MT and for 6A002.a.1, a.2, a.3, .c, and 
.f.
GBS: N/A

Special Conditions for STA

License Exception STA may not be used to ship any items in ECCN 
6A002, to any of the destinations listed in Country Group A:5 or A:6 
(See supplement no.1 to part 740 of the EAR).

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. (6) See USML 
Categories XII(e) and XV(e)(3) for read-out integrated circuits 
``subject to the ITAR.'' (7) See 6B002 for masks and reticles, 
``specially designed'' for optical sensors specified by 6A002.a.1.b 
or 6A002.a.1.d.
Related Definitions: N/A
Items:

    a. Optical detectors as follows:
    a.1. ``Space-qualified'' solid-state detectors as follows:
    Note: For the purpose of 6A002.a.1, solid-state detectors 
include ``focal plane arrays''.
    a.1.a. ``Space-qualified'' solid-state detectors having all of 
the following:
    a.1.a.1. A peak response in the wavelength range exceeding 10 nm 
but not exceeding 300 nm; and
    a.1.a.2. A response of less than 0.1% relative to the peak 
response at a wavelength exceeding 400 nm;
    a.1.b. ``Space-qualified'' solid-state detectors having all of 
the following:
    a.1.b.1. A peak response in the wavelength range exceeding 900 
nm but not exceeding 1,200 nm; and
    a.1.b.2. A response ``time constant'' of 95 ns or less;
    a.1.c. ``Space-qualified'' solid-state detectors having a peak 
response in the wavelength range exceeding 1,200 nm but not 
exceeding 30,000 nm;
    a.1.d. ``Space-qualified'' ``focal plane arrays'' having more 
than 2,048 elements per array and having a peak response in the 
wavelength range exceeding 300 nm but not exceeding 900 nm;
    a.2. Image intensifier tubes and ``specially designed'' 
``components'' therefor, as follows:
    Note: 6A002.a.2 does not control non-imaging photomultiplier 
tubes having an electron sensing device in the vacuum space limited 
solely to any of the following:
    a. A single metal anode; or
    b. Metal anodes with a center to center spacing greater than 500 
[micro]m.
    Technical Note: 'Charge multiplication' is a form of electronic 
image amplification and is defined as the generation of charge 
carriers as a result of an impact ionization gain process. 'Charge 
multiplication' sensors may take the form of an image intensifier 
tube, solid state detector or ``focal plane array''.
    a.2.a. Image intensifier tubes having all of the following:
    a.2.a.1. A peak response in the wavelength range exceeding 400 
nm but not exceeding 1,050 nm;
    a.2.a.2. Electron image amplification using any of the 
following:
    a.2.a.2.a. A microchannel plate with a hole pitch (center-to-
center spacing) of 12 [micro]m or less; or
    a.2.a.2.b. An electron sensing device with a non-binned pixel 
pitch of 500 [micro]m or less, ``specially designed'' or modified to 
achieve `charge multiplication' other than by a microchannel plate; 
and
    a.2.a.3. Any of the following photocathodes:
    a.2.a.3.a. Multialkali photocathodes (e.g., S-20 and S-25) 
having a luminous sensitivity exceeding 350 [micro]A/lm;
    a.2.a.3.b. GaAs or GaInAs photocathodes; or
    a.2.a.3.c. Other ``III-V compound'' semiconductor photocathodes 
having a maximum ``radiant sensitivity'' exceeding 10 mA/W;
    a.2.b. Image intensifier tubes having all of the following:
    a.2.b.1. A peak response in the wavelength range exceeding 1,050 
nm but not exceeding 1,800 nm;
    a.2.b.2. Electron image amplification using any of the 
following:
    a.2.b.2.a. A microchannel plate with a hole pitch (center-to-
center spacing) of 12 [micro]m or less; or
    a.2.b.2.b. An electron sensing device with a non-binned pixel 
pitch of 500 [micro]m or less, ``specially designed'' or modified to 
achieve `charge multiplication' other than by a microchannel plate; 
and
    a.2.b.3. ``III/V compound'' semiconductor (e.g., GaAs or GaInAs) 
photocathodes and transferred electron photocathodes, having a 
maximum ``radiant sensitivity'' exceeding 15 mA/W;
    a.2.c. ``Specially designed'' ``components'' as follows:
    a.2.c.1. Microchannel plates having a hole pitch (center-to-
center spacing) of 12 [micro]m or less;
    a.2.c.2. An electron sensing device with a non-binned pixel 
pitch of 500 [micro]m or less, ``specially designed'' or modified to 
achieve `charge multiplication' other than by a microchannel plate;
    a.2.c.3. ``III-V compound'' semiconductor (e.g., GaAs or GaInAs) 
photocathodes and transferred electron photocathodes;
    Note: 6A002.a.2.c.3 does not control compound semiconductor 
photocathodes designed to achieve a maximum ``radiant sensitivity'' 
of any of the following:
    a. 10 mA/W or less at the peak response in the wavelength range 
exceeding 400 nm but not exceeding 1,050 nm; or
    b. 15 mA/W or less at the peak response in the wavelength range 
exceeding 1,050 nm but not exceeding 1,800 nm.
    a.3. Non-``space-qualified'' ``focal plane arrays'' as follows:
    N.B.: `Microbolometer' non-``space-qualified'' ``focal plane 
arrays'' are only specified by 6A002.a.3.f.
    Technical Note: Linear or two-dimensional multi-element detector 
arrays are referred to as ``focal plane arrays'';
    Note 1: 6A002.a.3 includes photoconductive arrays and 
photovoltaic arrays.
    Note 2: 6A002.a.3 does not control:
    a. Multi-element (not to exceed 16 elements) encapsulated 
photoconductive cells using either lead sulphide or lead selenide;
    b. Pyroelectric detectors using any of the following:
    b.1. Triglycine sulphate and variants;
    b.2. Lead-lanthanum-zirconium titanate and variants;
    b.3. Lithium tantalate;
    b.4. Polyvinylidene fluoride and variants; or
    b.5. Strontium barium niobate and variants.
    c. ``Focal plane arrays'' ``specially designed'' or modified to 
achieve `charge multiplication' and limited by design to have a 
maximum ``radiant sensitivity'' of 10 mA/W or less for wavelengths 
exceeding 760 nm, having all of the following:
    c.1. Incorporating a response limiting mechanism designed not to 
be removed or modified; and

[[Page 85751]]

    c.2. Any of the following:
    c.2.a. The response limiting mechanism is integral to or 
combined with the detector element; or
    c.2.b. The ``focal plane array'' is only operable with the 
response limiting mechanism in place.
    d. Thermopile arrays having less than 5,130 elements;
    Technical Note: A response limiting mechanism integral to the 
detector element is designed not to be removed or modified without 
rendering the detector inoperable.
    a.3.a. Non-``space-qualified'' ``focal plane arrays'' having all 
of the following:
    a.3.a.1. Individual elements with a peak response within the 
wavelength range exceeding 900 nm but not exceeding 1,050 nm; and
    a.3.a.2. Any of the following:
    a.3.a.2.a. A response ``time constant'' of less than 0.5 ns; or
    a.3.a.2.b. ``Specially designed'' or modified to achieve 'charge 
multiplication' and having a maximum ``radiant sensitivity'' 
exceeding 10 mA/W;
    a.3.b. Non-``space-qualified'' ``focal plane arrays'' having all 
of the following:
    a.3.b.1. Individual elements with a peak response in the 
wavelength range exceeding 1,050 nm but not exceeding 1,200 nm; and
    a.3.b.2. Any of the following:
    a.3.b.2.a. A response ``time constant'' of 95 ns or less; or
    a.3.b.2.b. ``Specially designed'' or modified to achieve 'charge 
multiplication' and having a maximum ``radiant sensitivity'' 
exceeding 10 mA/W;
    a.3.c. Non-``space-qualified'' non-linear (2-dimensional) 
``focal plane arrays'' having individual elements with a peak 
response in the wavelength range exceeding 1,200 nm but not 
exceeding 30,000 nm;
    N.B.: Silicon and other material based 'microbolometer' non-
``space-qualified'' ``focal plane arrays'' are only specified by 
6A002.a.3.f.
    a.3.d. Non-``space-qualified'' linear (1-dimensional) ``focal 
plane arrays'' having all of the following:
    a.3.d.1. Individual elements with a peak response in the 
wavelength range exceeding 1,200 nm but not exceeding 3,000 nm; and
    a.3.d.2. Any of the following:
    a.3.d.2.a. A ratio of 'scan direction' dimension of the detector 
element to the `cross-scan direction' dimension of the detector 
element of less than 3.8; or
    a.3.d.2.b. Signal processing in the detector elements;
    Note: 6A002.a.3.d does not control ``focal plane arrays'' (not 
to exceed 32 elements) having detector elements limited solely to 
germanium material.
    Technical Note: For the purposes of 6A002.a.3.d, 'cross-scan 
direction' is defined as the axis parallel to the linear array of 
detector elements and the 'scan direction' is defined as the axis 
perpendicular to the linear array of detector elements.
    a.3.e. Non-``space-qualified'' linear (1-dimensional) ``focal 
plane arrays'' having individual elements with a peak response in 
the wavelength range exceeding 3,000 nm but not exceeding 30,000 nm;
    a.3.f. Non-``space-qualified'' non-linear (2-dimensional) 
infrared ``focal plane arrays'' based on 'microbolometer' material 
having individual elements with an unfiltered response in the 
wavelength range equal to or exceeding 8,000 nm but not exceeding 
14,000 nm;
    Technical Note: For the purposes of 6A002.a.3.f, 
'microbolometer' is defined as a thermal imaging detector that, as a 
result of a temperature change in the detector caused by the 
absorption of infrared radiation, is used to generate any usable 
signal.
    a.3.g. Non-``space-qualified'' ``focal plane arrays'' having all 
of the following:
    a.3.g.1. Individual detector elements with a peak response in 
the wavelength range exceeding 400 nm but not exceeding 900 nm;
    a.3.g.2. ``Specially designed'' or modified to achieve 'charge 
multiplication' and having a maximum ``radiant sensitivity'' 
exceeding 10 mA/W for wavelengths exceeding 760 nm; and
    a.3.g.3. Greater than 32 elements;
    b. ``Monospectral imaging sensors'' and ``multispectral imaging 
sensors'', designed for remote sensing applications and having any 
of the following:
    b.1. An Instantaneous-Field-Of-View (IFOV) of less than 200 
[micro]rad (microradians); or
    b.2. Specified for operation in the wavelength range exceeding 
400 nm but not exceeding 30,000 nm and having all the following:
    b.2.a. Providing output imaging data in digital format; and
    b.2.b. Having any of the following characteristics:
    b.2.b.1. ``Space-qualified''; or
    b.2.b.2. Designed for airborne operation, using other than 
silicon detectors, and having an IFOV of less than 2.5 mrad 
(milliradians);
    Note: 6A002.b.1 does not control ``monospectral imaging 
sensors'' with a peak response in the wavelength range exceeding 300 
nm but not exceeding 900 nm and only incorporating any of the 
following non-``space-qualified'' detectors or non-``space-
qualified'' ``focal plane arrays'':
    a. Charge Coupled Devices (CCD) not designed or modified to 
achieve 'charge multiplication'; or
    b. Complementary Metal Oxide Semiconductor (CMOS) devices not 
designed or modified to achieve 'charge multiplication'.
    c. 'Direct view' imaging equipment incorporating any of the 
following:
    c.1. Image intensifier tubes having the characteristics listed 
in 6A002.a.2.a or 6A002.a.2.b;
    c.2. ``Focal plane arrays'' having the characteristics listed in 
6A002.a.3; or
    c.3. Solid state detectors specified by 6A002.a.1;
    Technical Note: 'Direct view' refers to imaging equipment that 
presents a visual image to a human observer without converting the 
image into an electronic signal for television display, and that 
cannot record or store the image photographically, electronically or 
by any other means.
    Note: 6A002.c does not control equipment as follows, when 
incorporating other than GaAs or GaInAs photocathodes:
    a. Industrial or civilian intrusion alarm, traffic or industrial 
movement control or counting systems;
    b. Medical equipment;
    c. Industrial equipment used for inspection, sorting or analysis 
of the properties of materials;
    d. Flame detectors for industrial furnaces;
    e. Equipment ``specially designed'' for laboratory use.
    d. Special support ``components'' for optical sensors, as 
follows:
    d.1. ``Space-qualified'' cryocoolers;
    d.2. Non-``space-qualified'' cryocoolers having a cooling source 
temperature below 218 K (-55 [deg]C), as follows:
    d.2.a. Closed cycle type with a specified Mean-Time-To-Failure 
(MTTF) or Mean-Time-Between-Failures (MTBF), exceeding 2,500 hours;
    d.2.b. Joule-Thomson (JT) self-regulating minicoolers having 
bore (outside) diameters of less than 8 mm;
    d.3. Optical sensing fibers specially fabricated either 
compositionally or structurally, or modified by coating, to be 
acoustically, thermally, inertially, electromagnetically or nuclear 
radiation sensitive.
    Note: 6A002.d.3 does not apply to encapsulated optical sensing 
fibers ``specially designed'' for bore hole sensing applications.
    e. [Reserved]
    f. 'Read-Out Integrated Circuits' ('ROIC') ``specially 
designed'' for ``focal plane arrays'' specified by 6A002.a.3.
    Note: 6A002.f does not apply to read-out integrated circuits 
``specially designed'' for civil automotive applications.
    Technical Note: A 'Read-Out Integrated Circuit' ('ROIC') is an 
integrated circuit designed to underlie or be bonded to a ``focal 
plane array'' (``FPA'') and used to read-out (i.e., extract and 
register) signals produced by the detector elements. At a minimum 
the 'ROIC' reads the charge from the detector elements by extracting 
the charge and applying a multiplexing function in a manner that 
retains the relative spatial position and orientation information of 
the detector elements for processing inside or outside the 'ROIC'.
* * * * *
6D002 ``Software'' ``specially designed'' for the ``use'' of 
equipment controlled by 6A002.b, 6A008, or 6B008.

License Requirements

Reason for Control: NS, MT, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
MT applies to ``software'' for equipment    MT Column 1.
 controlled by 6A008 or 6B008 for MT
 reasons.
RS applies to ``software'' for equipment    RS Column 1.
 controlled by 6A008.j.1.
AT applies to entire entry................  AT Column 1.
 

[[Page 85752]]

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.

Special Conditions for STA

License Exception STA may not be used to ship or transmit any 
software under 6D002, to any of the destinations listed in Country 
Group A:5 or A:6 (See supplement no.1 to part 740 of the EAR).

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.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

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

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to paragraph c.................  RS Column 1.
AT applies to entire entry................  AT Column 1.
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any 
software in ECCN 6D003.c, to any of the destinations listed in 
Country Group A:5 or A:6 (See supplement no.1 to part 740 of the 
EAR). License Exception STA may not be used to ship or transmit 
software in 6D003.a to any of the destinations listed in Country 
Group A:6 (See Supplement No. 1 to part 740 of the EAR).

List of Items Controlled

Related Controls: See also ECCNs 6D103, 6D991, and 6D993.
Related Definitions: N/A
Items:

    Acoustics
    a. ``Software'' as follows:
    a.1. ``Software'' ``specially designed'' for acoustic beam 
forming for the ``real-time processing'' of acoustic data for 
passive reception using towed hydrophone arrays;
    a.2. ``Source code'' for the ``real-time processing'' of 
acoustic data for passive reception using towed hydrophone arrays;
    a.3. ``Software'' ``specially designed'' for acoustic beam 
forming for the ``real-time processing'' of acoustic data for 
passive reception using bottom or bay cable systems;
    a.4. ``Source code'' for the ``real-time processing'' of 
acoustic data for passive reception using bottom or bay cable 
systems;
    a.5. ``Software'' or ``source code'', ``specially designed'' for 
all of the following:
    a.5.a. ``Real-time processing'' of acoustic data from sonar 
systems controlled by 6A001.a.1.e; and
    a.5.b. Automatically detecting, classifying and determining the 
location of divers or swimmers;
    N.B.: For diver detection ``software'' or ``source code'', 
``specially designed'' or modified for military use, see the U.S. 
Munitions List of the International Traffic in Arms Regulations 
(ITAR) (22 CFR part 121).
    b. Optical sensors. None.
    Cameras
    c. ``Software'' designed or modified for cameras incorporating 
``focal plane arrays'' specified by 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 6A003.b.4 Note 3.a;
    Optics
    d. ``Software'' specially designed to maintain the alignment and 
phasing of segmented mirror systems consisting of mirror segments 
having a diameter or major axis length equal to or larger than 1 m;
    e. Lasers. None.
    Magnetic and Electric Field Sensors
    f. ``Software'' as follows:
    f.1. ``Software'' ``specially designed'' for magnetic and 
electric field ``compensation systems'' for magnetic sensors 
designed to operate on mobile platforms;
    f.2. ``Software'' ``specially designed'' for magnetic and 
electric field anomaly detection on mobile platforms;
    f.3. ``Software'' ``specially designed'' for ``real-time 
processing'' of electromagnetic data using underwater 
electromagnetic receivers specified by 6A006.e;
    f.4. ``Source code'' for ``real-time processing'' of 
electromagnetic data using underwater electromagnetic receivers 
specified by 6A006.e;
    Gravimeters
    g. ``Software'' ``specially designed'' to correct motional 
influences of gravity meters or gravity gradiometers;
    Radar
    h. ``Software'' as follows:
    h.1. Air Traffic Control (ATC) ``software'' designed to be 
hosted on general purpose computers located at Air Traffic Control 
centers and capable of accepting radar target data from more than 
four primary radars;
    h.2. ``Software'' for the design or ``production'' of radomes 
having all of the following:
    h.2.a. ``Specially designed'' to protect the ``electronically 
scanned array antennae'' specified by 6A008.e; and
    h.2.b. Resulting in an antenna pattern having an 'average side 
lobe level' more than 40 dB below the peak of the main beam level.
    Technical Note: `Average side lobe level' in 6D003.h.2.b is 
measured over the entire array excluding the angular extent of the 
main beam and the first two side lobes on either side of the main 
beam.
* * * * *
6D991 ``Software,'' n.e.s., ``specially designed'' for the 
``development'', ``production'', or ``use'' of commodities 
controlled by 6A002, 6A003, 6A991, 6A996, 6A997, or 6A998.

License Requirements

Reason for Control: RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to ``software'' for commodities  RS Column 1.
 controlled by 6A002, 6A003, 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)

TSR: N/A

Special Conditions for STA

License Exception STA may not be used to ship or transmit any 
``software'' in ECCN 6D991 ``specially designed'' for the 
``development,'' ``production,'' or ``use'' of commodities 
controlled under 6A002 or 6A003, to any of the destinations listed 
in Country Group A:5 or A:6 (See supplement no.1 to part 740 of the 
EAR).

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

[[Page 85753]]

Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
6E001 ``Technology'' According to the General Technology Note for 
the ``Development'' of Equipment, Materials or ``Software'' 
Controlled by 6A (Except 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).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for items      NS Column 1.
 controlled by 6A001 to 6A008, 6B002 to
 6B008, 6C002 to 6C005, or 6D001 to 6D003.
MT applies to ``technology'' for items      MT Column 1.
 controlled by 6A002, 6A007, 6A008, 6A102,
 6A107, 6A108, 6B008, 6B108, 6D001, 6D002,
 6D102 or 6D103 for MT reasons.
NP applies to ``technology'' for items      NP Column 1.
 controlled by 6A003, 6A005, 6A202, 6A203,
 6A205, 6A225, 6A226, 6D001, or 6D201 for
 NP reasons.
RS applies to ``technology'' for items      RS Column 1.
 controlled by 6A002.a.1, .a.2, .a.3, .c,
 or .f, 6A003.b.3 or .b.4, or 6A008.j.1.
CC applies to ``technology'' for equipment  CC Column 1.
 controlled by 6A002 for CC reasons.
AT applies to entire entry................  AT Column 1.
UN applies to ``technology'' for equipment  See Sec.   746.1(b) for UN
 controlled by 6A002 or 6A003 for UN         controls
 reasons.
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any 
``technology'' in ECCN 6E001 for the ``development'' of commodities 
controlled under ECCNs 6A002 or 6A003, to any of the destinations 
listed in Country Group A:5 or A:6 (See supplement no.1 to part 740 
of the EAR). License Exception STA may not be used to ship or 
transmit any technology in this entry to any of the destinations 
listed in Country Group A:6 (See Supplement No.1 to part 740 of the 
EAR).

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) 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. (4) See also 6E101, 6E201, and 6E991.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

6E002 ``Technology'' According to the General Technology Note for 
the ``Production'' of Equipment or Materials Controlled by 6A 
(Except 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, 6A998 or 6A999.c), 
6B (Except 6B995) or 6C (except 6C992 or 6C994).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for equipment  NS Column 1
 controlled by 6A001 to 6A008, 6B002 to
 6B008, or 6C002 to 6C005.
MT applies to ``technology'' for equipment  MT Column 1
 controlled by 6A002, 6A007, 6A008, 6A102,
 6A107, 6A108, 6B008, or 6B108 for MT
 reasons.
NP applies to ``technology'' for items      NP Column 1
 controlled by 6A003, 6A005, 6A202, 6A203,
 6A205, 6A225 or 6A226 for NP reasons.
RS applies to ``technology'' for items      RS Column 1
 controlled by 6A002.a.1, .a.2, .a.3, .c,
 or .f, 6A003.b.3 or .b.4, or 6A008.j.1.
CC applies to ``technology'' for equipment  CC Column 1
 controlled by 6A002 for CC reasons.
AT applies to entire entry................  AT Column 1
UN applies to ``technology'' for equipment  See Sec.   746.1(b) for UN
 controlled by 6A002 or 6A003 for UN         controls
 reasons.
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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

[[Page 85754]]

``specially designed'' for real time applications.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any 
``technology'' in ECCN 6E002 for the ``production'' of commodities 
controlled under ECCNs 6A002 or 6A003, to any of the destinations 
listed in Country Group A:5 or A:6 (See supplement no.1 to part 740 
of the EAR). License Exception STA may not be used to ship or 
transmit ``technology'' according to the General Technology Note for 
the ``production'' of equipment specified in the STA exclusion 
paragraphs found in the License Exception sections of by ECCNs 
6A001, 6A002, 6A003, 6A004, 6A006, 6A008, or 6B008 to any of the 
destinations listed in Country Group A:6 (See Supplement No.1 to 
part 740 of the EAR).

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) 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. (4) See also 6E992.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
7D004 ``Source code'' incorporating ``development'' ``technology'' 
specified by 7E004.a.2, a.3, a.5, a.6 or 7E004.b, for any of the 
following: (see List of Items Controlled).

License Requirements

Reason for Control: NS, AT

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

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' in 7D004.a to .d and .g to any of the destinations 
listed in Country Groups A:5 and A:6 (See Supplement No.1 to part 
740 of the EAR).

List of Items Controlled

Related Controls: See 7D103 and 7D994
Related Definitions: N/A
Items:

    a. Digital flight management systems for ``total control of 
flight'';
    b. Integrated propulsion and flight control systems;
    c. ``Fly-by-wire systems'' or ``fly-by-light systems'';
    d. Fault-tolerant or self-reconfiguring ``active flight control 
systems'';
    e. [Reserved];
    f. Air data systems based on surface static data; or
    g. Three dimensional displays.
    Note: 7D004 does not apply to ``source code'' associated with 
common computer elements and utilities (e.g., input signal 
acquisition, output signal transmission, computer ``program'' and 
data loading, built-in test, task scheduling mechanisms) not 
providing a specific flight control system function.
* * * * *
    9B001 Manufacturing equipment, tooling or fixtures, as follows 
(See List of Items Controlled).

Reason for Control: NS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1
MT applies to equipment for engines         MT column 1
 controlled under 9A001 for MT reasons and
 for engines controlled under 9A101.
AT applies to entire entry................  AT Column 1
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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

LVS: $5000, except N/A for MT
GBS: Yes, except N/A for MT

Special Conditions for STA

STA: License Exception STA may not be used to ship commodities in 
9B001 to any of the destinations listed in Country Group A:5 or A:6 
(See supplement no.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: For ``specially designed'' production equipment of 
systems, sub-systems, ``parts'' and ``components'' controlled by 
9A005 to 9A009, 9A011, 9A101, 9A105 to 9A109, 9A111, and 9A116 to 
9A119 usable in ``missiles'' see 9B115. See also 9B991.
Related Definitions: N/A
Items:

    a. Directional solidification or single crystal casting 
equipment designed for ``superalloys'';
    b. Casting tooling, ``specially designed'' for manufacturing gas 
turbine engine blades, vanes or ``tip shrouds'', manufactured from 
refractory metals or ceramics, as follows:
    b.1. Cores;
    b.2. Shells (moulds);
    b.3. Combined core and shell (mould) units;
    c. Directional-solidification or single-crystal additive-
manufacturing equipment designed for ``superalloys''.
* * * * *
    9D001 ``Software'', not specified in 9D003 or 9D004, ``specially 
designed'' or modified for the ``development'' of equipment or 
``technology'' controlled by ECCN 9A001 to 9A004, 9A012, 9A101 
(except for items in 9A101.b that are ``subject to the ITAR'', see 
22 CFR part 121), 9A106.d. or .e, 9A110, or 9A120, 9B (except for 
ECCNs 9B604, 9B610, 9B619, 9B990, and 9B991), or ECCN 9E003.

License Requirements

Reason for Control: NS, MT, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``software'' for equipment    NS Column 1
 controlled by 9A001 to 9A004, 9A012,
 9B001 to 9B010, and technology controlled
 by 9E003.
MT applies to ``software'' for equipment    MT Column 1
 controlled by 9B116 for MT reasons.
AT applies to entire entry................  AT Column 1
 

Reporting Requirements

    See Sec.  743.1 of the EAR for reporting requirements for 
exports under License Exceptions, and Validated End-User 
authorizations.

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any 
software controlled by ECCN 9D001 that is (1)(a) ``software'' that 
is ``specially designed'' or modified for the ``development'' or 
``production'' of components of engines controlled by ECCN 9A001 if 
such components incorporate any of the ``technologies'' controlled 
by 9E003.a.1, 9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 
9E003.h, or 9E003.i (other than technology for fan or power 
turbines), ; or (b) equipment controlled by 9B001, or (2) 
``specially designed'' or modified for the ``development'' of 
``technology'' controlled by 9E003.a.1, 9E003.a.2, 9E003.a.3, 
9E003.a.4, 9E003.a.5, 9E003.c, 9E003.h, or 9E003.i (other than 
technology for fan or power turbines).to any of the destinations 
listed in Country Group A:5 or A:6 (See Supplement No.1 to part 740 
of the EAR). License Exception STA may not be used to ship or 
transmit ``software'' ``specially designed'' or modified for the 
``development'' of equipment or

[[Page 85755]]

``technology'', specified by ECCNs 9B001.b. or 9E003.a.1, 9E003.a.2 
to a.5, 9E003.a.8, or 9E003.hto any of the destinations listed in 
Country Group A:6 (See Supplement No.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: ``Software'' that is ``required'' for the 
``development'' of items specified in ECCNs 9A005 to 9A011, 9A101.b 
(except for items that are subject to the EAR), 9A103 to 9A105, 
9A106.a, .b, and .c, 9A107 to 9A109, 9A110 (for items that are 
``specially designed'' for use in missile systems and subsystems), 
and 9A111 to 9A119 is ``subject to the ITAR''.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
    9D002 ``Software'', not specified in 9D003 or 9D004, ``specially 
designed'' or modified for the ``production'' of equipment 
controlled by ECCN 9A001 to 9A004, 9A012, 9A101 (except for items in 
9A101.b that are ``subject to the ITAR'', see 22 CFR part 121), 
9A106.d or .e, 9A110, or 9A120, 9B (except for ECCNs 9B604, 9B610, 
9B619, 9B990, and 9B991).

License Requirements

Reason for Control: NS, MT, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``software'' for equipment    NS Column 1
 controlled by 9A001 to 9A004, 9A012,
 9B001 to 9B010.
MT applies to ``software'' for equipment    MT Column 1
 controlled by 9B116 for MT reasons.
AT applies to entire entry................  AT Column 1
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used for 9D002 software that 
is ``specially designed'' or modified for the ``production'' of 
components of engines controlled by ECCN 9A001 if such components 
incorporate any of the ``technologies'' controlled by 9E003.a.1, 
9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.h or 
9E003.i (other than technology for fan or power turbines); or 
equipment controlled by 9B001.
License Exception STA may not be used to ship or transmit 
``software'' ``specially designed'' or modified for the 
``production'' of equipment specified by 9B001.b to any of the 
destinations listed in Country Group A:6 (See Supplement No.1 to 
part 740 of the EAR).

List of Items Controlled

Related Controls: ``Software'' that is ``required'' for the 
``production'' of items specified in ECCNs 9A005 to 9A011, 9A101.b 
(except for items that are subject to the EAR), 9A103 to 9A105, 
9A106.a, .b, and .c, 9A107 to 9A109, 9A110 (for items that are 
``specially designed'' for use in missile systems and subsystems), 
and 9A111 to 9A119 is ``subject to the ITAR''.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *
    9D004 Other ``software'' as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, AT

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

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any 
software controlled by ECCN 9D004.f or .g, to any of the 
destinations listed in Country Group A:5 or A:6 (See supplement no.1 
to part 740 of the EAR). License Exception STA may not be used to 
ship or transmit software in 9D004.a and 9D004.c to any of the 
destinations listed in Country Group A:6 (See supplement no. 1 to 
part 740 of the EAR)

List of Items Controlled

Related Controls: See also 9D104.
Related Definitions: N/A
Items:

    a. 2D or 3D viscous ``software'', validated with wind tunnel or 
flight test data required for detailed engine flow modelling;
    b. ``Software'' for testing aero gas turbine engines, 
assemblies, ``parts'' or ``components'', having all of the 
following:
    b.1. ``Specially designed'' for testing any of the following:
    b.1.a. Aero gas turbine engines, assemblies or components, 
incorporating ``technology'' specified by 9E003.a, 9E003.h or 
9E003.i; or
    b.1.b. Multi-stage compressors providing either bypass or core 
flow, specially designed for aero gas turbine engines incorporating 
``technology'' specified by 9E003.a or 9E003.h; and
    b.2. ``Specially designed'' for all of the following:
    b.2.a. Acquisition and processing of data, in real time; and
    b.2.b. Feedback control of the test article or test conditions 
(e.g., temperature, pressure, flow rate) while the test is in 
progress;
    Note: 9D004.b does not specify software for operation of the 
test facility or operator safety (e.g., overspeed shutdown, fire 
detection and suppression), or production, repair or maintenance 
acceptance-testing limited to determining if the item has been 
properly assembled or repaired.
    c. ``Software'' ``specially designed'' to control directional 
solidification or single crystal material growth in equipment 
specified by 9B001.a or 9B001.c;
    d. [Reserved]
    e. ``Software'' ``specially designed'' or modified for the 
operation of items specified by 9A012;
    f. ``Software'' ``specially designed'' to design the internal 
cooling passages of aero gas turbine engine blades, vanes and ``tip 
shrouds'';
    g. ``Software'' having all of the following:
    g.1. ``Specially designed'' to predict aero thermal, 
aeromechanical and combustion conditions in aero gas turbine 
engines; and
    g.2. Theoretical modeling predictions of the aero thermal, 
aeromechanical and combustion conditions, which have been validated 
with actual turbine engine (experimental or production) performance 
data.
* * * * *
    9E001 ``Technology'' according to the General Technology Note 
for the ``development'' of equipment or ``software'', controlled by 
9A004, 9A012, 9B (except for ECCNs 9B604, 9B610, 9B619, 9B990 and 
9B991), or ECCN 9D001 to 9D004, 9D101, or 9D104.

License Requirements

Reason for Control: NS, MT, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for items      NS Column 1
 controlled by 9A004, 9A012, 9B001 to
 9B010, 9D001 to 9D004 for NS reasons.
MT applies to ``technology'' for items      MT Column 1
 controlled by 9A012, 9B001, 9B002, 9B003,
 9B004, 9B005, 9B007, 9B104, 9B105, 9B106,
 9B115, 9B116, 9B117, 9D001, 9D002, 9D003,
 or 9D004 for MT reasons.
AT applies to entire entry................  AT Column 1
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations

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

TSR: N/A

[[Page 85756]]

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any'' 
technology'' in this entry for the ``development'' of equipment 
under 9B001, to any of the destinations listed in Country Group A:5 
or A:6 (See supplement no. 1 to part 740 of the EAR).

License Exception STA may not be used to ship or transmit any 
technology in this entry to any of the destinations listed in 
Country Group A:6 (See Supplement No. 1 to part 740 of the EAR).

List of Items Controlled

Related Controls: (1) See also 9E101 and 1E002.f (for controls on 
``technology'' for the repair of controlled structures, laminates or 
materials). (2) ``Technology'' required for the ``development'' of 
equipment described in ECCNs 9A005 to 9A011 or ``software'' 
described in ECCNs 9D103 and 9D105 is ``subject to the ITAR.''
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    9E002 ``Technology'' according to the General Technology Note 
for the ``production'' of ``equipment'' controlled by ECCN 9A004 or 
9B (except for ECCNs 9B117, 9B604, 9B610, 9B619, 9B990, and 9B991).

License Requirements

Reason for Control: NS, MT, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1
MT applies to ``technology'' for equipment  MT Column 1
 controlled by 9B001, 9B002, 9B003, 9B004,
 9B005, 9B007, 9B104, 9B105, 9B106, 9B115
 or 9B116 for MT reasons.
AT applies to entire entry................  AT Column 1
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any 
``technology'' in this entry for the ``production'' of equipment 
under 9B001, to any of the destinations listed in Country Group A:5 
or A:6 (See supplement no.1 to part 740 of the EAR).
License Exception STA may not be used to ship or transmit any 
technology in this entry to any of the destinations listed in 
Country Group A:6 (See supplement no. 1 to part 740 of the EAR).

List of Items Controlled

Related Controls: (1) See also 9E102. (2) See also 1E002.f for 
``technology'' for the repair of controlled structures, laminates or 
materials. (3) ``Technology'' that is required for the 
``production'' of equipment described in ECCNs 9A005 to 9A011 is 
``subject to the ITAR.''
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    9E003 Other ``technology'' as follows (see List of Items 
Controlled).

License Requirements

    Reason for Control: NS, SI, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1
SI applies to 9E003.a.1 through a.8, .h,    See Sec.   742.14 of the EAR
 .i, and .l.                                 for additional information
AT applies to entire entry................  AT Column 1
 

Reporting Requirements

See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions, and Validated End-User authorizations.

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

TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit any 
``technology'' controlled by ECCN 9E003.a.1 to a.5, 9E003.c, 
9E003.h, or 9E003.i (other than technology for fan or power 
turbines), to any of the destinations listed in Country Group A:5 or 
A:6 (See supplement no.1 to part 740 of the EAR).
License Exception STA may not be used to ship or transmit any 
technology in 9E003.k to any of the destinations listed in Country 
Group A:6 (See Supplement No.1 to part 740 of the EAR).

List of Items Controlled

Related Controls: (1) Hot section ``technology'' specifically 
designed, modified, or equipped for military uses or purposes, or 
developed principally with U.S. Department of Defense funding, is 
``subject to the ITAR'' (see 22 CFR parts 120 through 130). (2) 
``Technology'' is subject to the EAR when actually applied to a 
commercial ``aircraft'' engine program. Exporters may seek to 
establish commercial application either on a case-by-case basis 
through submission of documentation demonstrating application to a 
commercial program in requesting an export license from the 
Department of Commerce in respect to a specific export, or in the 
case of use for broad categories of ``aircraft,'' engines, ``parts'' 
or ``components,'' a commodity jurisdiction determination from the 
Department of State.
Related Definitions: N/A
Items:

    a. ``Technology'' ``required'' for the ``development'' or 
``production'' of any of the following gas turbine engine ``parts,'' 
``components'' or systems:
    a.1. Gas turbine blades, vanes or ``tip shrouds'', made from 
Directionally Solidified (DS) or Single Crystal (SC) alloys and 
having (in the 001 Miller Index Direction) a stress-rupture life 
exceeding 400 hours at 1,273 K (1,000 [deg]C) at a stress of 200 
MPa, based on the average property values;
    Technical Note: For the purposes of 9E003.a.1, stress-rupture 
life testing is typically conducted on a test specimen.
    a.2. Combustors having any of the following:
    a.2.a. `Thermally decoupled liners' designed to operate at 
`combustor exit temperature' exceeding 1,883 K (1,610 [deg]C);
    a.2.b. Non-metallic liners;
    a.2.c. Non-metallic shells; or
    a.2.d. Liners designed to operate at `combustor exit 
temperature' exceeding 1,883 K (1,610 [deg]C) and having holes that 
meet the parameters specified by 9E003.c;
    a.2.e. Utilizing `pressure gain combustion';
    Technical Note: For the purposes of 9E003.a.2.e, in `pressure 
gain combustion' the bulk average stagnation pressure at the 
combustor outlet is greater than the bulk average stagnation 
pressure at the combustor inlet due primarily to the combustion 
process, when the engine is running in a ``steady state mode'' of 
operation.
    Note: The ``required'' ``technology'' for holes in 9E003.a.2 is 
limited to the derivation of the geometry and location of the holes.
    Technical Notes:
    1. For the purposes of 9E003.a.2.a, `thermally decoupled liners' 
are liners that feature at least a support structure designed to 
carry mechanical loads and a combustion facing structure designed to 
protect the support structure from the heat of combustion. The 
combustion facing structure and support structure have independent 
thermal displacement (mechanical displacement due to thermal load) 
with respect to one another, i.e., they are thermally decoupled.
    2. For the purposes of 9E003.a.2.d, `combustor exit temperature' 
is the bulk average gas path total (stagnation) temperature between 
the combustor exit plane and the leading edge of the turbine inlet 
guide vane (i.e., measured at engine station T40 as defined in SAE 
ARP 755A) when the engine is running in a ``steady state mode'' of 
operation at the certificated maximum continuous operating 
temperature.

N.B.: See 9E003.c for ``technology'' ``required'' for manufacturing 
cooling holes.
    a.3. ``Parts'' or ``components,'' that are any of the following:
    a.3.a. Manufactured from organic ``composite'' materials 
designed to operate above 588 K (315 [deg]C);
    a.3.b. Manufactured from any of the following:
    a.3.b.1. Metal ``matrix'' ``composites'' reinforced by any of 
the following:
    a.3.b.1.a. Materials controlled by 1C007;
    a.3.b.1.b. ``Fibrous or filamentary materials'' specified by 
1C010; or

[[Page 85757]]

    a.3.b.1.c. Aluminides specified by 1C002.a; or
    a.3.b.2. Ceramic ``matrix'' ``composites'' specified by 1C007; 
or
    a.3.c. Stators, vanes, blades, tip seals (shrouds), rotating 
blings, rotating blisks or `splitter ducts', that are all of the 
following:
    a.3.c.1. Not specified in 9E003.a.3.a;
    a.3.c.2. Designed for compressors or fans; and
    a.3.c.3. Manufactured from material controlled by 1C010.e with 
resins controlled by 1C008;
    Technical Note: For the purposes of 9E003.a.3.c, a `splitter 
duct' performs the initial separation of the air-mass flow between 
the bypass and core sections of the engine.
    a.4. Uncooled turbine blades, vanes or ``tip shrouds'' designed 
to operate at a ``gas path temperature'' of 1,373 K (1,100 [deg]C) 
or more;
    a.5. Cooled turbine blades, vanes or ``tip shrouds'', other than 
those described in 9E003.a.1, designed to operate at a `gas path 
temperature' of 1,693 K (1,420 [deg]C) or more;
    Technical Note: For the purposes of 9E003.a.5, ``gas path 
temperature'' is the bulk average gas path total (stagnation) 
temperature at the leading-edge plane of the turbine component when 
the engine is running in a ``steady state mode'' of operation at the 
certificated or specified maximum continuous operating temperature.
    a.6. Airfoil-to-disk blade combinations using solid state 
joining;
    a.7. [Reserved]
    a.8. `Damage tolerant' gas turbine engine rotor ``parts'' or 
``components'' using powder metallurgy materials controlled by 
1C002.b; or
    Technical Note: For the purposes of 9E003.a.8, ``damage 
tolerant'' ``parts'' and ``components'' are designed using 
methodology and substantiation to predict and limit crack growth.
    a.9. [Reserved]
    N.B.: For ``FADEC systems'', see 9E003.h.
    a.10. [Reserved]
    N.B.: For adjustable flow path geometry, see 9E003.i.
    a.11. `Fan blades' having all of the following:
    a.11.a. 20% or more of the total volume being one or more closed 
cavities containing vacuum or gas only; and
    a.11.b. One or more closed cavities having a volume of 5 cm\3\ 
or larger;
    Technical Note: For the purposes of 9E003.a.11, a `fan blade' is 
the aerofoil portion of the rotating stage or stages, which provide 
both compressor and bypass flow in a gas turbine engine.
    b. ``Technology'' ``required'' for the ``development'' or 
``production'' of any of the following:
    b.1. Wind tunnel aero-models equipped with non-intrusive sensors 
capable of transmitting data from the sensors to the data 
acquisition system; or
    b.2. ``Composite'' propeller blades or prop-fans, capable of 
absorbing more than 2,000 kW at flight speeds exceeding Mach 0.55;
    c. ``Technology'' ``required'' for manufacturing cooling holes, 
in gas turbine engine ``parts'' or ``components'' incorporating any 
of the ``technologies'' specified by 9E003.a.1, 9E003.a.2, or 
9E003.a.5, and having any of the following:
    c.1. Having all of the following:
    c.1.a. Minimum ``cross-sectional area'' less than 0.45 mm\2\;
    c.1.b. ``Hole shape ratio'' greater than 4.52; and
    c.1.c. ``Incidence angle'' equal to or less than 25[deg]; or
    c.2. Having all of the following:
    c.2.a. Minimum ``cross-sectional area'' less than 0.12 mm\2\;
    c.2.b. ``Hole shape ratio'' greater than 5.65; and
    c.2.c. ``Incidence angle'' more than 25[deg];
    Note: 9E003.c does not apply to ``technology'' for manufacturing 
constant radius cylindrical holes that are straight through and 
enter and exit on the external surfaces of the component.
    Technical Notes:
    1. For the purposes of 9E003.c, the ``cross-sectional area'' is 
the area of the hole in the plane perpendicular to the hole axis.
    2. For the purposes of 9E003.c, ``hole shape ratio'' is the 
nominal length of the axis of the hole divided by the square root of 
its minimum `cross-sectional area'.
    3. For the purposes of 9E003.c, ``incidence angle'' is the acute 
angle measured between the plane tangential to the airfoil surface 
and the hole axis at the point where the hole axis enters the 
airfoil surface.
    4. For the purposes of 9E003.c, methods for manufacturing holes 
include ``laser'' beam machining, water jet machining, Electro-
Chemical Machining (ECM) or Electrical Discharge Machining (EDM).
    d. ``Technology'' ``required'' for the ``development'' or 
``production'' of helicopter power transfer systems or tilt rotor or 
tilt wing ``aircraft'' power transfer systems;
    e. ``Technology'' for the ``development'' or ``production'' of 
reciprocating diesel engine ground vehicle propulsion systems having 
all of the following:
    e.1. `Box volume' of 1.2 m\3\ or less;
    e.2. An overall power output of more than 750 kW based on 80/
1269/EEC, ISO 2534 or national equivalents; and
    e.3. Power density of more than 700 kW/m\3\ of `box volume';
    Technical Note: For the purposes of 9E003.e.1, ``box volume'' is 
the product of three perpendicular dimensions measured in the 
following way:
    Length: The length of the crankshaft from front flange to 
flywheel face;
    Width: The widest of any of the following:
    a. The outside dimension from valve cover to valve cover;
    b. The dimensions of the outside edges of the cylinder heads; or
    c. The diameter of the flywheel housing;
    Height: The largest of any of the following:
    a. The dimension of the crankshaft center-line to the top plane 
of the valve cover (or cylinder head) plus twice the stroke; or
    b. The diameter of the flywheel housing.
    f. ``Technology'' ``required'' for the ``production'' of 
``specially designed'' ``parts'' or ``components'' for high output 
diesel engines, as follows:
    f.1. ``Technology'' ``required'' for the ``production'' of 
engine systems having all of the following ``parts'' and 
``components'' employing ceramics materials controlled by 1C007:
    f.1.a. Cylinder liners;
    f.1.b. Pistons;
    f.1.c. Cylinder heads; and
    f.1.d. One or more other ``part'' or ``component'' (including 
exhaust ports, turbochargers, valve guides, valve assemblies or 
insulated fuel injectors);
    f.2. ``Technology'' ``required'' for the ``production'' of 
turbocharger systems with single-stage compressors and having all of 
the following:
    f.2.a. Operating at pressure ratios of 4:1 or higher;
    f.2.b. Mass flow in the range from 30 to 130 kg per minute; and
    f.2.c. Variable flow area capability within the compressor or 
turbine sections;
    f.3. ``Technology'' ``required'' for the ``production'' of fuel 
injection systems with a ``specially designed'' multifuel (e.g., 
diesel or jet fuel) capability covering a viscosity range from 
diesel fuel (2.5 cSt at 310.8 K (37.8 [deg]C)) down to gasoline fuel 
(0.5 cSt at 310.8 K (37.8 [deg]C)) and having all of the following:
    f.3.a. Injection amount in excess of 230 mm\3\ per injection per 
cylinder; and
    f.3.b. Electronic control features ``specially designed'' for 
switching governor characteristics automatically depending on fuel 
property to provide the same torque characteristics by using the 
appropriate sensors;
    g. ``Technology'' ``required'' for the ``development'' or 
``production'' of `high output diesel engines' for solid, gas phase 
or liquid film (or combinations thereof) cylinder wall lubrication 
and permitting operation to temperatures exceeding 723 K (450 
[deg]C), measured on the cylinder wall at the top limit of travel of 
the top ring of the piston;
    Technical Note: For the purposes of 9E003.g, ``high output 
diesel engines'' are diesel engines with a specified brake mean 
effective pressure of 1.8 MPa or more at a speed of 2,300 r.p.m., 
provided the rated speed is 2,300 r.p.m. or more.
    h. ``Technology'' for gas turbine engine ``FADEC systems'' as 
follows:
    h.1. ``Development'' ``technology'' for deriving the functional 
requirements for the ``parts'' or ``components'' necessary for the 
``FADEC system'' to regulate engine thrust or shaft power (e.g., 
feedback sensor time constants and accuracies, fuel valve slew 
rate);
    h.2. ``Development'' or ``production'' ``technology'' for 
control and diagnostic ``parts'' or ``components'' unique to the 
``FADEC system'' and used to regulate engine thrust or shaft power;
    h.3. ``Development'' ``technology'' for the control law 
algorithms, including ``source code'', unique to the ``FADEC 
system'' and used to regulate engine thrust or shaft power;
    Note: 9E003.h does not apply to technology related to engine-
``aircraft'' integration required by civil aviation authorities of 
one or more Wassenaar Arrangement Participating States (See 
Supplement No. 1 to part 743 of the EAR) to be published for general 
airline use e.g., installation manuals, operating instructions, 
instructions for continued airworthiness) or interface

[[Page 85758]]

functions e.g., input/output processing, airframe thrust or shaft 
power demand).
    i. ``Technology'' for adjustable flow path systems designed to 
maintain engine stability for gas generator turbines, fan or power 
turbines, or propelling nozzles, as follows:
    i.1. ``Development'' ``technology'' for deriving the functional 
requirements for the ``parts'' or ``components'' that maintain 
engine stability;
    i.2. ``Development'' or ``production'' ``technology'' for 
``parts'' or ``components'' unique to the adjustable flow path 
system and that maintain engine stability;
    i.3. ``Development'' ``technology'' for the control law 
algorithms, including ``source code'', unique to the adjustable flow 
path system and that maintain engine stability;
    Note: 9E003.i does not apply to ``technology'' for any of the 
following:
    a. Inlet guide vanes;
    b. Variable pitch fans or prop-fans;
    c. Variable compressor vanes;
    d. Compressor bleed valves; or
    e. Adjustable flow path geometry for reverse thrust.
    j. ``Technology'' ``required'' for the ``development'' of wing-
folding systems designed for fixed-wing ``aircraft'' powered by gas 
turbine engines.
    N.B.: For ``technology'' ``required'' for the ``development'' of 
wing-folding systems designed for fixed-wing ``aircraft'' specified 
in USML Category VIII (a), see USML Category VIII (i).
    k. ``Technology'', not specified in 9E003.a, 9E003.h, or 
9E003.i, ``required'' for the ``development'' of any of the 
following components or systems, ``specially designed'' for aero gas 
turbine engines to enable ``aircraft'' to cruise at Mach 1 or 
greater for more than 30 minutes:
    k.1. Propulsion inlet systems;
    k.2. Propulsion exhaust systems;
    k.3. `Reheat systems';
    k.4. `Active thermal management systems' to condition fluids 
used to lubricate or cool `engine rotor supports';
    k.5. Oil-free `engine rotor supports'; or
    k.6. Systems to remove heat from `compression system' core gas 
path flow.
    Technical Notes: For the purposes of 9E003.k:
    1. Propulsion inlet systems include core flow pre-coolers.
    2. `Reheat systems' provide additional thrust by combusting fuel 
in exhaust and/or bypass flow downstream of the last turbomachinery 
stage. `Reheat systems' are also referred to as afterburners.
    3. `Active thermal management systems' employ methods other than 
passive oil-to-air cooling or oil-to-fuel cooling, such as vapor 
cycle systems.
    4. `Compression system' is any stage or combination of stages 
between the engine inlet face and the combustor that increases gas 
path pressure through mechanical work.
    5. An `engine rotor support' is the bearing supporting the main 
engine shaft that drives the compression system or turbine rotors.
    N.B. 1. See 9E003.h for engine control technology.
    N.B. 2. See 9E003.i for adjustable flow path systems technology.
    l. ``Technology'' not otherwise controlled in 9E003.a.1 through 
a.8, a.10, and .h and used in the ``development'', ``production'', 
or overhaul of hot section ``parts'' or ``components'' of civil 
derivatives of military engines controlled on the U.S. Munitions 
List.
* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-26681 Filed 12-7-23; 8:45 am]
BILLING CODE 3510-33-P