Document ID: BIS-2011-0017-0001
Agency: bis
Document Type: Rule
Title: Wassenaar Arrangement 2010 Plenary Agreements Implementation: Commerce Control List, Definitions, Reports; Correction
Posted Date: 2011-06-14T04:00Z

[Federal Register Volume 76, Number 114 (Tuesday, June 14, 2011)]
[Rules and Regulations]
[Pages 34577-34579]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14667]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 743, and 774

[Docket No. 110124056-1301-02]
RIN 0694-AF11

Wassenaar Arrangement 2010 Plenary Agreements Implementation: 
Commerce Control List, Definitions, Reports; Correction

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Correcting amendments.

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SUMMARY: This document corrects errors in a final rule published by the 
Bureau of Industry and Security (BIS) in the Federal Register on 
Friday, May 20, 2011 that revised the Export Administration Regulations 
(EAR) by amending entries for certain items that are controlled for 
national security reasons in Categories 1, 2, 3, 4, 5 Parts I & II, 6, 
7, 8, and 9; adding and amending definitions to the EAR; and revising 
reporting requirements. That final rule contained errors concerning 
radial ball bearings, as well as editorial mistakes.

DATES: Effective Date: This rule is effective: June 14, 2011.

FOR FURTHER INFORMATION CONTACT: For general questions contact Sharron 
Cook, Office of Exporter Services, Bureau of Industry and Security, 
U.S. Department of Commerce at (202) 482-2440 or by e-mail: 
sharron.cook@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    On May 20, 2011, the final rule, ``Wassenaar Arrangement 2010 
Plenary Agreements Implementation: Commerce Control List, Definitions, 
Reports'' was published in the Federal Register (76 FR 29610). The May 
20th rule removed paragraph 2A001.b, ``Other ball bearings and solid 
roller bearings, having all tolerances specified by the manufacturer in 
accordance with ISO 492 Tolerance Class 2 (or ANSI/ABMA Std 20 
Tolerance Class ABEC-9 or RBEC-9, or other national equivalents), or 
better.'' However, there is a subset of these ball bearings that are 
listed on the Missile Technology Control Regime Annex under 3.A.7, 
which provides: ``Radial ball bearings having all tolerances specified 
in accordance with ISO 492 Tolerance Class 2 (or ANSI/ABMA Std 20 
Tolerance Class ABEC-9 or other national equivalents), or better and 
having all the following characteristics: a. An inner ring bore 
diameter between 12 and 50 mm; b. An outer ring outside diameter 
between 25 and 100 mm; and c. A width between 10 and 20 mm.'' 
Therefore, BIS is adding a new Export Control Classification Number 
(ECCN) 2A101 to the Commerce Control List (CCL) (Supplement No. 1 to 
part 774) to control the export and reexport of these ball bearings. 
ECCN 2A101 is controlled for Missile Technology (MT) and Anti-terrorism 
(AT) reasons, more specifically MT column 1 and AT column 1. A license 
is required under MT Column 1 of the Commerce Country Chart (Supplement 
No. 1 to part 738) for export or reexport of ball bearings classified 
under ECCN 2A101 to all destinations, except Canada. License 
requirements and license review policy for MT controlled items are set 
forth in Sec.  742.5 of the EAR. License requirements and license 
review policy for AT controlled items are set forth in Sec. Sec.  742.8 
Iran, 742.9 Syria, 742.10 Sudan, and 742.19 North Korea.
    To harmonize with the addition of ECCN 2A101, this rule adds 2A101 
to the list of ECCNs in Sec.  740.2(a)(5)(ii) that are MT controlled, 
but may be exported or reexported under Sec. Sec.  740.9(a)(2)(ii) 
(License Exception TMP) or 740.10 (License Exception RPL) as one-for-
one replacements for equipment previously legally exported or 
reexported.
    To harmonize with the text of the WA list, this rule removes the 
word ``the'' in the phrase ``For the `multiple channel ADCs' '' that 
appears in Technical Note 4 following paragraph 3A001.a.5.a.5.
    To harmonize with the text of the WA list, this rule removes the 
word ``converter'' from the phrase ``ADC converter units'' in Technical 
Note 9 following paragraph 3A001.a.5.a.5.
    To harmonize with the text of the WA list, this rule removes the 
Technical Note in the Items paragraph of ECCN 3E001.
    This rule removes the Notes to paragraph (c)(1)(vi) in Section 
743.1, because these notes relate to paragraphs 6A002.a.3 and 6A006.d, 
which were removed from Wassenaar reporting requirements in the May 
20th rule.
    This rule also removes paragraphs 6A005.a.1 and 6A006.g and .h from 
the limited restrictions under the TSR paragraph of the License 
Exception section of ECCNs 6E001 and 6E002. Paragraph 6A005.a.1 is 
removed because it is not listed on the Wassenaar Arrangement Sensitive 
or Very Sensitive Lists. Paragraph 6A006.g and .h are no longer in 
existence, as these paragraphs were removed from the CCL on July 15, 
2005 (70 FR 41094, 41099).
    This rule also removes paragraph 6A008.l.3 from Supplement No. 1 to 
part 740.11 ``Additional Restrictions on Use of License Exception 
GOV.'' The

[[Page 34578]]

May 20th rule removed and reserved paragraph 6A008.l.3. The Wassenaar 
Arrangement (WA) inadvertently left this paragraph on the Sensitive and 
Very Sensitive Lists, but in the Spring of 2011 the WA agreed to 
correct this error. In addition, this rule removes 6A008.l.3 from the 
limited restrictions under the TSR paragraph of the License Exception 
section of ECCNs 6D001, 6E001 and 6E002.
    This rule also replaces the double quotes with single quotes around 
the term ``Active noise reduction or cancellation systems'' in 
paragraph 8A002.o.3.b and the Technical Note of that paragraph. Single 
quotes are used to indicate the term is defined in the ECCN entry and 
double quotes are used when the term is defined in Section 772.1.

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as 
amended, has been in lapse. However, the President has continued the 
EAR in effect under the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) through Executive Order 13222 of August 17, 2001 
(3 CFR 2001 Comp. 783 (2002)), which has been extended by successive 
Presidential Notices, the most recent being that of August 12, 2010, 75 
FR 50681 (August 16, 2010).

Saving Clause

    Shipments of items removed from license exception eligibility or 
eligibility for export without a license as a result of this regulatory 
action that were on dock for loading, on lighter, laden aboard an 
exporting carrier, or en route aboard a carrier to a port of export, on 
June 14, 2011, pursuant to actual orders for export to a foreign 
destination, may proceed to that destination under the previous license 
exception eligibility or without a license so long as they have been 
exported from the United States before August 15, 2011. Any such items 
not actually exported before midnight, on August 15, 2011, require a 
license in accordance with this regulation.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be not significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
involves two collections of information subject to the PRA. One 
collection has been approved by OMB under control number 0694-0088, 
``Multi Purpose Application,'' and carries a burden hour estimate of 58 
minutes for a manual or electronic submission. The other collection has 
been approved by OMB under control number 0694-0106, ``Reporting and 
Recordkeeping Requirements under the Wassenaar Arrangement,'' and 
carries a burden hour estimate of 21 minutes for a manual or electronic 
submission. Send comments regarding these burden estimates or any other 
aspect of these collections of information, including suggestions for 
reducing the burden, to OMB Desk Officer, New Executive Office 
Building, Washington, DC 20503; and to Jasmeet Seehra, OMB Desk 
Officer, by e-mail at Jasmeet_K._Seehra@omb.eop.gov or by fax to 
(202) 395-7285; and to the Office of Administration, Bureau of Industry 
and Security, Department of Commerce, 14th and Pennsylvania Avenue, 
NW., Room 6622, Washington, DC 20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (5 U.S.C. 553(a)(1)). Immediate 
implementation of these amendments fulfills the United States' 
international obligation to the Wassenaar Arrangement on Export 
Controls for Conventional Arms and Dual-Use Goods and Technologies. The 
Wassenaar Arrangement (WA) contributes to international security and 
regional stability by promoting greater responsibility in transfers of 
conventional arms and dual use goods and technologies, thus preventing 
destabilizing accumulations of such items. The Wassenaar Arrangement 
consists of 40 member countries that act on a consensus basis, and the 
changes set forth in this rule implement agreements reached at the 
December 2010 plenary session of the WA. Since the United States is a 
significant exporter of the items in this rule, implementation of this 
provision is necessary for the WA to achieve its purpose. Any delay in 
implementation will create a disruption in the movement of affected 
items globally because of disharmony between export control measures 
implemented by WA members, resulting in tension between member 
countries. Export controls work best when all countries implement the 
same export controls in a timely manner. If this rulemaking was delayed 
to allow for notice and comment, it would prevent the United States 
from fulfilling its commitment to the WA in a timely manner and would 
injure the credibility of the United States in this and other 
multilateral regimes.
    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under the 
Administrative Procedure Act or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Therefore, this regulation is issued in final form. 
Although there is no formal comment period, public comments on this 
regulation are welcome on a continuing basis. Comments should be 
submitted to Sharron Cook, Office of Exporter Services, Bureau of 
Industry and Security, Department of Commerce, 14th and Pennsylvania 
Ave., NW., Room 2099, Washington, DC 20230.

List of Subjects

15 CFR Part 740

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

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, Parts 740, 743 and 774 of the Export Administration 
Regulations (15 CFR parts 730-774) are amended as follows:

PART 740--[AMENDED]

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

[[Page 34579]]

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., 
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 
of August 12, 2010, 75 FR 50681 (August 16, 2010).

Sec.  740.2 [Amended]

0
2. Section 740.2 is amended by removing the phrase ``ECCN 2A001'' and 
adding in its place ``ECCNs 2A001 or 2A101'' in paragraph (a)(5)(ii).

Sec.  740.11  [Amended]

0
3. In Sec.  740.11, Supplement No. 1 to Sec.  740.11 is amended by:
0
a. Removing ``6A008.l.3,'' from the following paragraphs:
    1. (a)(1) introductory text;
    2. (a)(1)(vii)(D) and (E);
    3. (b)(1) introductory text; and
    4. (b)(1)(vii)(D) and (E); and
0
b. Removing ``6A008.l.3 or'' from paragraphs (a)(1)(vi)(C) and 
(b)(1)(vi)(C).

PART 743--[AMENDED]

0
4. The authority citation for Part 743 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
12, 2010, 75 FR 50681 (August 16, 2010).

Sec.  743.1  [Amended]

0
5. Section 743.1 is amended by removing the notes to paragraph 
(c)(1)(vi).

PART 774--[AMENDED]

0
6. The authority citation for Part 774 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Notice of August 12, 2010, 75 FR 50681 (August 16, 2010).

0
7. Supplement No. 1 to Part 774 (the Commerce Control List), Category 
2--Materials Processing is amended by adding ECCN 2A101, to read as 
follows:

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

* * * * *

2A101 Radial Ball Bearings Having all Tolerances Specified in 
Accordance With ISO 492 Tolerance Class 2 (or ANSI/ABMA Std 20 
Tolerance Class ABEC-9 or Other National Equivalents), or Better and 
Having all the Following Characteristics (see List of Items 
Controlled).

License Requirements

    Reason for Control: MT, AT0

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
AT applies to entire entry.............  AT Column 1.
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License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A
    List of Items Controlled
    Unit: $ value
    Related Controls: See ECCN 2A001.
    Related Definitions: N/A
    Items:
    a. An inner ring bore diameter between 12 and 50 mm;
    b. An outer ring outside diameter between 25 and 100 mm; and
    c. A width between 10 and 20 mm.
* * * * *

Supplement No. 1 to Part 774 [Amended]

0
8. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 3 Electronics, ECCN 3A001, List of Items Controlled section 
the Items paragraph is amended by:
0
a. Removing the phrase ``For the `multiple channel ADCs''' from 
paragraph 4 of the Technical Notes following paragraph a.5.a.5 and 
adding in its place ``For `multiple channel ADCs' ''; and
0
b. Removing the phrase ``multiple ADC converter units'' from paragraph 
9 of the Technical Notes following paragraph a.5.a.5 and adding in its 
place ``multiple ADC units''.

Supplement No. 1 to Part 774 [Amended]

0
9. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 3 Electronics, ECCN 3E001, List of Items Controlled section 
the Items paragraph is amended by removing the Technical Note.

Supplement No. 1 to Part 774 [Amended]

0
10. Supplement No. 1 to Part 774 (the Commerce Control List), Category 
6--Sensors and ``Lasers'', ECCN 6D001 is amended by removing the phrase 
``6A008.d, h, k, or 1.3, '' and adding in its place ``6A008.d, h, or k, 
'' in paragraph 3 of the TSR paragraph in the License Exceptions 
section.

Supplement No. 1 to Part 774 [Amended]

0
11. Supplement No. 1 to Part 774 (the Commerce Control List), Category 
6--Sensors and ``Lasers'', ECCN 6E001 is amended by:
0
a. Removing 6A005.a.1, 6A006.g, 6A006.h, and 6A008.l.3 from paragraph 
(4)(a) of the TSR paragraph in the License Exceptions section; and
0
b. Removing the phrase ``6A008.l.3 or'' from paragraph (4)(c) of the 
TSR paragraph in the License Exceptions section.

Supplement No. 1 to Part 774 [Amended]

0
12. Supplement No. 1 to Part 774 (the Commerce Control List), Category 
6--Sensors and ``Lasers'', ECCN 6E002 is amended by removing 6A005.a.1, 
6A006.g, 6A006.h, and 6A008.l.3 from paragraph (3)(a) of the TSR 
paragraph in the License Exceptions section.

Supplement No. 1 to Part 774 [Amended]

0
13. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 8--Marine, ECCN 8A002 is amended by removing the double quotes 
around the term ``Active noise reduction or cancellation systems'' in 
paragraph o.3.b and the Technical Note of that paragraph and adding in 
its place single quotes.

    Dated: June 8, 2011.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2011-14667 Filed 6-13-11; 8:45 am]
BILLING CODE 3510-33-P