Document ID: BIS-2015-0011-0001
Agency: bis
Document Type: Proposed Rule
Title: Wassenaar Arrangement Plenary Agreements Implementation; Intrusion and Surveillance Items
Posted Date: 2015-05-20T04:00Z

[Federal Register Volume 80, Number 97 (Wednesday, May 20, 2015)]
[Proposed Rules]
[Pages 28853-28863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11642]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, 748, 772, 774

[Docket No. 150304218-5218-01]
RIN 0694-AG49

Wassenaar Arrangement 2013 Plenary Agreements Implementation: 
Intrusion and Surveillance Items

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Proposed rule, with request for comments.

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SUMMARY: The Bureau of Industry and Security (BIS) proposes to 
implement the agreements by the Wassenaar Arrangement (WA) at the 
Plenary meeting in December 2013 with regard to systems, equipment or 
components specially designed for the generation, operation or delivery 
of, or communication with, intrusion software; software specially 
designed or modified for the development or production of such systems, 
equipment or components; software specially designed for the 
generation, operation or delivery of, or communication with, intrusion 
software; technology required for the development of intrusion 
software; Internet Protocol (IP) network communications surveillance 
systems or equipment and test, inspection, production equipment, 
specially designed components therefor, and development and production 
software and technology therefor. BIS proposes a license requirement 
for the export, reexport, or transfer (in-country) of these 
cybersecurity items to all destinations, except Canada. Although these 
cybersecurity capabilities were not previously designated for export 
control, many of these items have been controlled for their 
``information security'' functionality, including encryption and 
cryptanalysis. This rule thus continues applicable Encryption Items 
(EI) registration and review requirements, while setting forth proposed 
license review policies and special submission requirements to address 
the new cybersecurity controls, including submission of a letter of 
explanation with regard to the technical capabilities of the 
cybersecurity items.
    BIS also proposes to add the definition of ``intrusion software'' 
to the definition section of the EAR pursuant to the WA 2013 
agreements.

DATES: Submit comments on or before July 20, 2015.

ADDRESSES: Comments on this rule may be submitted to the Federal 
rulemaking

[[Page 28854]]

portal (www.regulations.gov). The regulations.gov ID for this rule is: 
BIS-2015-0011. Comments may also be submitted via email to 
publiccomments@bis.doc.gov or on paper to Regulatory Policy Division, 
Bureau of Industry and Security, Room 2099B, U.S. Department of 
Commerce, 14th St. and Pennsylvania Ave. NW., Washington, DC 20230. 
Please refer to RIN 0694-AG49 in all comments and in the subject line 
of email comments.

FOR FURTHER INFORMATION CONTACT: Catherine Wheeler, Director, 
Information Technology Control Division, Phone: (202) 482-0707 or by 
email at Catherine.Wheeler@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Wassenaar Arrangement (WA) on Export Controls for Conventional 
Arms and Dual-Use Goods and Technologies is a group of 41 like-minded 
states committed to promoting responsibility and transparency in the 
global arms trade, and preventing destabilizing accumulations of arms. 
As a Participating State, the United States has committed to 
controlling for export all items on the WA control lists. The lists 
were first established in 1996 and have been revised annually 
thereafter. Proposals for changes to the WA control lists that achieve 
consensus are approved by Participating States at annual December 
Plenary meetings. Participating States are charged with implementing 
the agreed list changes as soon as possible after approval. 
Implementation of WA list changes ensures U.S. companies have a level 
playing field with their competitors in other WA member states.
    In 2013, WA agreed to add the following to their list of dual-use 
goods: systems, equipment or components specially designed for the 
generation, operation or delivery of, or communication with, intrusion 
software; software specially designed or modified for the development 
or production of such systems, equipment or components; software 
specially designed for the generation, operation or delivery of, or 
communication with, intrusion software; technology required for the 
development of intrusion software; Internet Protocol (IP) network 
communications surveillance systems or equipment and test, inspection, 
production equipment, specially designed components therefor, and 
development and production software and technology therefor. BIS, the 
Departments of Defense and State, as well as other agencies have been 
discussing the best way to add these items, which we have named 
``cybersecurity items,'' to the Commerce Control List (CCL) (Supplement 
No. 1 to part 774 of the Export Administration Regulations) without 
reducing encryption controls and while balancing the national security 
and foreign policy. For resource planning purposes, as well as license 
requirements, license exceptions, license submission requirements, and 
internal license reviews and processing planning purposes, this rule is 
published as a proposed rule.

Scope of the New Entries

    Systems, equipment, components and software specially designed for 
the generation, operation or delivery of, or communication with, 
intrusion software include network penetration testing products that 
use intrusion software to identify vulnerabilities of computers and 
network-capable devices. Certain penetration testing products are 
currently classified as encryption items due to their cryptographic 
and/or cryptanalytic functionality. Technology for the development of 
intrusion software includes proprietary research on the vulnerabilities 
and exploitation of computers and network-capable devices. The new 
entry on the CCL that would control Internet Protocol (IP) network 
communications surveillance systems or equipment is restricted to 
products that perform all of the functions listed; however, the Export 
Administration Regulations (EAR) also prohibits the export of equipment 
if the exporter intends it will be combined with other equipment to 
comprise a system described in the new entry.

Addition of ECCNs 4A005 and 4D004 to the Commerce Control List

    This rule proposes to add Export Control Classification Number 
(ECCN) 4A005 (``systems,'' ``equipment,'' or ``components'' therefor, 
``specially designed'' for the generation, operation or delivery of, or 
communication with, ``intrusion software'') and ECCN 4D004 
(``software'' ``specially designed'' for the generation, operation or 
delivery of, or communication with, ``intrusion software'') to the CCL. 
These ECCNs are proposed to be controlled for national security (NS), 
regional stability (RS), and anti-terrorism (AT) reasons to all 
destinations, except Canada. No license exceptions would be available 
for these items, except certain provisions of License Exception GOV, 
e.g., exports to or on behalf of the United States Government pursuant 
to Sec.  740.11(b) of the EAR. This rule also proposes adding a License 
Requirement Note and a Note in the Related Controls paragraph for these 
ECCNs, to alert exporters to include all relevant information when 
submitting classification requests and licensing applications.

ECCN 4D001

    This rule also proposes to amend ECCN 4D001 by adding ECCN 4A005 to 
Items paragraph 4D001.a in order to add control of ``software'' 
``specially designed'' or modified for the ``development'' or 
``production,'' of equipment controlled by 4A005; adding an RS:1 
license requirement paragraph for 4D001.a (as it applies to 4A005 or 
4D004), removing License Exceptions TSR and STA eligibility; and adding 
the same explanatory License Requirement Note and Related Controls Note 
that would be added to ECCNs 4A005 and 4D004.
    As a technical correction, this rule proposes to remove from the 
``Reason for control'' paragraph ``NP,'' and from the License 
Requirement section the two sentences, ``NP applies, unless a license 
exception is available. See Sec.  742.3(b) of the EAR for information 
on applicable licensing review policies.'' That text does not 
articulate any license requirement, and no nuclear non-proliferation 
license requirement for software classified as 4D001 is set forth 
elsewhere in the EAR. BIS's regular practice is to impose a license 
requirement for nuclear non-proliferation reasons on items that are 
specified on the ``List of Nuclear-Related Dual-Use Equipment, 
Materials, Software, and Related Technology'' by the Nuclear Suppliers 
Group. ECCN 4D001 software is not so specified.

ECCN 4E001

    This rule also proposes to amend ECCN 4E001 by adding a new Items 
paragraph 4E001.c to control ``technology'' ``required'' for the 
``development'' of ``intrusion software.'' ECCN 4E001.a controls 
````technology'' according to the General Technology Note, for the 
``development,'' ``production,'' or ``use'' of equipment or 
``software'' controlled by 4A (except 4A980 or 4A994) or 4D (except 
4D980, 4D993 or 4D994).'' Therefore, ECCN 4E001.a would control 
``technology'' for the newly added 4A005 and 4D004, as well as 4D001.a 
(for 4A005 and 4D004). This rule also proposes to add an RS:1 license 
requirement paragraph for 4E001.a ``technology'' (as it applies to 
4A005, 4D001.a (as it applies to 4A005 or 4D004) or 4D004) and 4E001.c, 
which would require a license to export, reexport, and transfer (in-
country) to all destinations, except Canada. BIS also proposes to 
remove License Exception Technology and Software Under

[[Page 28855]]

Restriction (TSR) and Strategic Trade Authorization (STA) eligibility 
and add the same explanatory License Requirement Note and Related 
Controls Note added to ECCNs 4A005, 4D001 and 4D004. Also, a reference 
to Sec.  772.1 is proposed to be added to ECCNs 4A005, 4D001 and 4E001 
to point to the location of the ``intrusion software'' definition, as 
this rule may be of interest to many new exporters that would not 
otherwise know that double quoted terms in the EAR are defined in Sec.  
772.1.
    Lastly, the same technical correction regarding the Nuclear Non-
proliferation (NP) control is proposed for 4E001 as is proposed for 
4D001, see explanation above.

ECCN 5A001.j: Internet Protocol (IP) Network Communications 
Surveillance Systems or Equipment and Test, Inspection, Production 
Equipment, Specially Designed Components Therefor

    Network communication traffic analysis systems are becoming an 
increasingly sensitive issue, which is why WA agreed to add the control 
of these items to the WA dual-use list. These systems are using the 
process of intercepting and analyzing messages to produce personal, 
human and social information from the communications traffic. BIS 
proposes to add these items in paragraph 5A001.j and group them with 
cybersecurity items. The license requirements for these items are 
proposed to under NS Column 1, RS Column 1 and AT Column 1 on the 
Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) and 
would require a license for export, reexport, and transfer (in-country) 
to all destinations, except Canada. Only certain provisions of License 
Exception GOV, e.g., exports to or on behalf of the United States 
Government pursuant to Sec.  740.11(b) of the EAR, would be available 
for these items.
    The same addition of a License Requirement Note and Related Control 
Note is proposed for ECCNs 5A001, 5D001, and 5E001 as is proposed for 
ECCNs 4A005, 4D001, 4D004 and 4E001 (see explanation under 4A005 and 
4D005 above).

Sec.  740.13--License Exception TSU

    BIS proposes to remove cybersecurity software from the mass market 
provision of License Exception TSU eligibility by adding a new 
paragraph (d)(2)(ii). This is consistent with the existing encryption 
exclusion.

Cybersecurity Items That Are Designed or Modified To Use 
``Cryptography'' or Cryptanalysis

    As previously introduced and explained in the preamble, this rule 
proposes to add a Related Control note to ECCNs 4A005, 4D004, 4E001, 
5A001, 5A002, 5D002 and 5E002 that states that cybersecurity items are 
classified in cybersecurity ECCNs, even if the items are designed or 
modified to use ``cryptography'' or cryptanalysis; however, all such 
cybersecurity items using or incorporating encryption or other 
``information security'' functionality classified under ECCNs 5A002, 
5D002, 5A992.c, 5D992.c or 5E002, must also satisfy the registration, 
review and reporting requirements set forth in Sec. Sec.  740.17, 
742.15(b) and 748.3(d) of the EAR, including submissions to the ENC 
Encryption Request Coordinator, Ft. Meade, MD. This note is added so 
that people will not be confused under which ECCN to classify their 
products and when a cybersecurity item is designed or modified to use 
``cryptography'' or cryptanalysis, after the relevant Encryption Items 
(EI) requirements for registration and review have been separately 
satisfied. One effect this will have is that these cybersecurity items 
will not be eligible for License Exception ENC. However, BIS 
anticipates licensing broad authorizations to certain types of end 
users and destinations that will counterbalance the loss of the use of 
License Exception ENC.

Information To Be Submitted With a License Application To Export, 
Reexport, or Transfer (In-Country) Cybersecurity Items

    In addition to the general information required by Sec.  748.3(b) 
of the EAR and the requirement that all encryption registration and 
review provisions must be separately satisfied with BIS and the ENC 
Encryption Request Coordinator, Ft. Meade, MD, this rule proposes to 
add a requirement to submit specific technical information in support 
of applications to export, reexport, or transfer (in-country) 
cybersecurity items. The specified technical information is set forth 
in newly added paragraph (z) of Supplement No. 2 to part 748 ``Unique 
application and submission requirements.'' The Commodity Classification 
Application Tracking System (CCATS) number(s) or license number(s) for 
the cyber security item(s) must be included in the license application. 
If no classification or license application has been done for the 
cybersecurity item, then the answers to three (3) questions are to be 
submitted in a letter of explanation.
    Also, this rule proposes that upon request from BIS, the applicant 
must include a copy of the sections of source code and other software 
(e.g., libraries and header files) that implement or invoke the 
controlled cybersecurity functionality.

License Review Policy for Cybersecurity Items

    The license review policies for cybersecurity items controlled 
under NS and AT will not be revised. A new license review policy for 
cybersecurity items is proposed under Sec.  742.6(b) for regional 
stability. Cybersecurity items controlled for RS are proposed to be 
reviewed favorably if destined to a U.S. company or subsidiary not 
located in Country Group D:1 or E:1, foreign commercial partners 
located in Country Group A:5, government end users in Australia, 
Canada, New Zealand or the United Kingdom, and on a case-by-case basis 
to determine whether the transaction is contrary to the national 
security or foreign policy interests of the United States, including 
the foreign policy interest of promoting the observance of human rights 
throughout the world. Note that there is a policy of presumptive denial 
for items that have or support rootkit or zero-day exploit 
capabilities. The governments of Australia, Canada, New Zealand or the 
United Kingdom have partnered with the United States on cybersecurity 
policy and issues, which affords these countries with favorable 
treatment for license applications. A note that describes ``foreign 
commercial partner'' is proposed to be added to Sec.  742.6(b). Any 
``information security'' functionality incorporated in the 
cybersecurity item will also receive a focused case-by-case review for 
reasons of Encryption Items (EI) control.

Sec.  772.1 Definitions of Terms as Used in the EAR: Addition of 
Definition for ``Intrusion Software''

    The WA-agreed definition for ``intrusion software'' is proposed to 
be added to Sec.  772.1 of the EAR. The definition also includes a Note 
that describes some items not included as ``intrusion software,'' e.g., 
hypervisors, debuggers or Software Reverse Engineering (SRE).

Request for Comments

    BIS is seeking information about the effect of this rule and would 
appreciate the submission of comments, and especially answers to the 
following questions:

[[Page 28856]]

    1. How many additional license applications would your company be 
required to submit per year under the requirements of this proposed 
rule? If any, of those applications:
    a. How many additional applications would be for products that are 
currently eligible for license exceptions?
    b. How many additional applications would be for products that 
currently are classified EAR99?
    2. How many deemed export, reexport or transfer (in-country) 
license applications would your company be required to submit per year 
under the requirements of this rule?
    3. Would the rule have negative effects on your legitimate 
vulnerability research, audits, testing or screening and your company's 
ability to protect your own or your client's networks? If so, explain 
how.
    4. How long would it take you to answer the questions in proposed 
paragraph (z) to Supplement No. 2 to part 748? Is this information you 
already have for your products?
    * The ADDRESSES section of this proposed rule includes information 
about how to submit comments.

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 designated a ``significant regulatory 
action,'' under 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 
would involve one collection of information subject to the PRA. One of 
the collections 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 additional 
information proposed to be required under Supplement No. 2 to part 748 
paragraph (z) falls under the usual technical information that is 
submitted with applications to describe the abilities of the items on 
the license application. This information allows the licensing officer 
to verify the classification of the product and determine the effect it 
would have on U.S. national security and foreign policy. 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 email 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, 1401 Constitution Ave. 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 (APA) (5 
U.S.C. 553) requiring notice of proposed rulemaking, the opportunity 
for public participation, and a 30-day 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)). 
Nonetheless, BIS is providing the public with an opportunity to review 
and comment on this rule, despite its being exempted from that 
requirement of the APA. Because this rule is not required by the APA to 
undergo a period of notice and comment, the requirements of the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., do not apply. 
Accordingly, no regulatory flexibility analysis is required, and none 
has been prepared.
    BIS is interested in the potential impacts to businesses of this 
rule. Because most of the items impacted by this rule have encryption 
capabilities, BIS believes they are already being controlled under 
Category 5 part 2 of the EAR. Even though most encryption items are 
eligible for License Exception ENC and these cybersecurity items will 
not be eligible for License Exception ENC, BIS anticipates issuing 
broad licenses for these items. The impact of this rule is unknown to 
BIS, therefore the implementation of the Wassenaar Arrangement 
agreement of 2013 with regard to cybersecurity items is issued as a 
proposed rule with request for comments concerning the impact of the 
rule. 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 or emailed 
to publiccomments@bis.doc.gov. Please refer to RIN 0694-AG49 in all 
comments and in the subject line of email comments.

List of Subjects

15 CFR Part 740

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 748

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

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 740, 742, 748, 772, and 774 of the Export 
Administration Regulations (15 CFR parts 730 through 774) are proposed 
to be amended as follows:

PART 740 [AMENDED]

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

    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 7, 2014, 79 FR 46959 (August 11, 2014).

0
2. Section 740.2 is amended by adding paragraph (a)(19) to read as 
follows:

Sec.  740.2  Restrictions on all License Exceptions.

    (a) * * *
    (19) The item is a cybersecurity item, i.e., those controlled by 
ECCNs 4A005, 4D001.a (``specially designed'' or modified for 4A005 or 
4D004 items), 4D004, 4E001.a (``required'' for 4A005, 4D001.a 
(``specially designed'' or modified for 4A005 or 4D004) or 4D004 
items), 4E001.c, 5A001.j, 5B001.a (``specially designed'' for 5A001.j 
items), 5D001.a (``specially designed'' for 5A001.j items), 5D001.c 
(``specially designed'' for 5A001.j or 5B001.a items) or 5E001.a 
(``required'' for 5A001.j, 5B001.a, 5D001.a (for 5A001.j items) or 
5D001.c (``specially designed'' for 5A001.j or 5B001.a items) and the 
export, reexport or transfer (in-country) is not authorized by Sec.  
740.11(b)(2)(ii) (made by or consigned to a department or agency of the 
U.S. government), or

[[Page 28857]]

Sec.  740.11(b)(2)(iii) (made for or on behalf of a department or 
agency of the U.S. Government).
* * * * *
0
3. Section 740.11 is amended by:
0
a. Adding paragraph (a)(2)(vi);
0
b. Removing the ``or'' from the end of paragraph (c)(3)(vi);
0
c. Removing the period from paragraph (c)(3)(vii) and adding a 
semicolon in its place; and
0
d. Adding paragraph (c)(3)(viii).
    The revisions and addition read as follows:

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

    (a) * * *
    (2) * * *
    (vi) Cybersecurity items, i.e., those controlled by ECCNs 4A005, 
4D001.a (``specially designed'' or modified for 4A005 or 4D004 items), 
4D004, 4E001.a (``required'' for 4A005, 4D001.a (``specially designed'' 
or modified for 4A005 or 4D004) or 4D004 items), 4E001.c, 5A001.j, 
5B001.a (``specially designed'' for 5A001.j items), 5D001.a 
(``specially designed'' or modified for 5A001.j items), 5D001.c 
(``specially designed'' or modified for 5A001.j or 5B001.a items) or 
5E001.a (``required'' for 5A001.j, 5B001.a, 5D001.a (``specially 
designed'' or modified for 5A001.j items) or 5D001.c (``specially 
designed'' or modified for 5A001.j or 5B001.a items).
* * * * *
    (c) * * *
    (3) * * *
    (viii) Cybersecurity items, i.e., those controlled by ECCNs 4A005, 
4D001.a (``specially designed'' or modified for 4A005 or 4D004 items), 
4D004, 4E001.a (``required'' for 4A005, 4D001.a (``specially designed'' 
or modified for 4A005 or 4D004) or 4D004 items), 4E001.c, 5A001.j, 
5B001.a (``specially designed'' for 5A001.j items), 5D001.a 
(``specially designed'' or modified for 5A001.j items), 5D001.c 
(``specially designed'' or modified for 5A001.j or 5B001.a items) or 
5E001.a (``required'' for 5A001.j, 5B001.a, 5D001.a (``specially 
designed'' or modified for 5A001.j items) or 5D001.c (``specially 
designed'' or modified for 5A001.j or 5B001.a) items).
* * * * *
0
4. Section 740.13 is amended by revising the section heading and 
paragraph (d)(2) to read as follows:

Sec.  740.13  Technology and Software--Unrestricted (TSU).

* * * * *
    (d) * * *
    (2) Exclusions--(i) Encryption software. The provisions of this 
paragraph (d) are not available for encryption software controlled for 
``EI'' reasons under ECCN 5D002 or for encryption software with 
symmetric key length exceeding 64-bits that qualifies as mass market 
encryption software under the criteria in the Cryptography Note (Note 
3) of Category 5, Part 2, of the Commerce Control List (Supplement No. 
1 to part 774 of the EAR). (Once such mass market encryption software 
has been reviewed by BIS and released from ``EI'' and ``NS'' controls 
pursuant to Sec.  742.15(b) of the EAR, it is controlled under ECCN 
5D992.c and is thus outside the scope of License Exception TSU.) See 
Sec.  742.15(b) of the EAR for exports and reexports of mass market 
encryption products controlled under ECCN 5D992.c.
    (ii) Cybersecurity software. The provisions of this paragraph (d) 
are not available for cybersecurity ``software'' that is classified 
under ECCNs 4D001.a (``specially designed'' or modified for 4A005 or 
4D004 items), 4D004, or for ``software'' under ECCN 5D001.a or .c 
(``specially designed'' for ``production,'' ``development'' or ``use'' 
of 5A001.j equipment or systems, or providing the characteristics, 
functions or features of 5A001.j or 5B001.a equipment or systems).
* * * * *
0
5. Section 740.17 is amended by revising paragraph (b)(3)(iii) 
introductory text to read as follows:

Sec.  740.17  Encryption commodities, software and technology (ENC).

* * * * *
    (b) * * *
    (3) * * *
    (iii) Encryption commodities and software not described by 
paragraph (b)(2) of this section, and not further controlled for NS and 
RS reasons under ECCNs 5A001.j, 5B001.a (``specially designed'' for 
5A001.j), 5D001.a (``specially designed'' or modified for 5A001.j) or 
5D001.c (``specially designed'' or modified for 5A001.j or 5B001.a), 
that provide or perform vulnerability analysis, network forensics, or 
computer forensics functions characterized by any of the following:
* * * * *
0
6. Section 740.20 is amended by adding paragraph (b)(2)(ix) to read as 
follows:

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

* * * * *
    (b) * * *
    (2) * * *
    (ix) License Exception STA may not be used for any cybersecurity 
items, i.e., those controlled by ECCNs 4A005, 4D001.a (``specially 
designed'' or modified for 4A005 or 4D004 items), 4D004, 4E001.a 
(``required'' for 4A005, 4D001.a (``specially designed'' or modified 
for 4A005 or 4D004 items) or 4D004 items), 4E001.c, 5A001.j, 5B001.a 
(``specially designed'' for 5A001.j items), 5D001.a (``specially 
designed'' or modified for 5A001.j items), 5D001.c (``specially 
designed'' or modified for 5A001.j or 5B001.a items) or 5E001.a 
(``required'' for 5A001.j, 5B001.a, 5D001.a (``specially designed'' or 
modified for 5A001.j items) or 5D001.c (``specially designed'' or 
modified for 5A001.j or 5B001.a items) items).
* * * * *

PART 742 [AMENDED]

0
7. The authority citation for part 742 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of 
November 7, 2014, 79 FR 67035 (November 12, 2014).

0
8. Section 742.6 is amended by adding paragraph (b)(5) to read as 
follows:

Sec.  742.6  Regional stability.

* * * * *
    (b) * * *
    (5) Licensing policy for cybersecurity items. Applications for 
exports, reexports and transfers of cybersecurity items, i.e., those 
controlled by ECCNs 4A005, 4D001.a (``specially designed'' or modified 
for 4A005 or 4D004 items), 4D004, 4E001.a (``required'' for 4A005, 
4D001.a (``specially designed'' or modified for 4A005 or 4D004 items) 
or 4D004 items), 4E001.c, 5A001.j, 5B001.a (``specially designed'' for 
5A001.j items), 5D001.a (``specially designed'' or modified for 5A001.j 
items), 5D001.c (``specially designed'' or modified for 5A001.j or 
5B001.a items) or 5E001.a (``required'' for 5A001.j, 5B001.a, 5D001.a 
(``specially designed'' or modified for 5A001.j items) or 5D001.c 
(``specially designed'' or modified for 5A001.j or 5B001.a items) 
items), controlled for RS will be reviewed favorably if destined to a 
U.S. company or subsidiary not located in Country Group D:1 or E:1, 
`foreign commercial

[[Page 28858]]

partners' located in Country Group A:5, Government end users in 
Australia, Canada, New Zealand or United Kingdom and on a case-by-case 
basis to determine whether the transaction is contrary to the national 
security or foreign policy interests of the United States, including 
the foreign policy interest of promoting the observance of human rights 
throughout the world, except that there is a policy of presumptive 
denial for items that have or support rootkit or zero-day exploit 
capabilities. Any ``information security'' functionality incorporated 
in the cybersecurity item will also receive a focused case-by-case 
review for reasons of Encryption Items (EI) control.
    Note to paragraph (b)(5): A `foreign commercial partner' means a 
foreign-based non-governmental end-user that has a business need to 
share the proprietary information of the U.S. company and is 
contractually bound to the U.S. company (e.g., has an established 
pattern of continuing or recurring contractual relations). In addition 
to the information required in Sec.  748.3(c)(1), (c)(2) and paragraph 
(z) of Supplement No. 2 to part 748 of the EAR, you must explain in a 
letter of explanation how the end user meets the criteria of a `foreign 
commercial partner' and how the end user will safeguard the items from 
unauthorized transfers (in-country) and reexports.
* * * * *

PART 748--[AMENDED]

0
9. The authority citation for part 748 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 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 7, 2014, 79 FR 
46959 (August 11, 2014).

0
10. Section 748.8 is amended by adding paragraph (z) to read as 
follows:

Sec.  748.8  Unique application and submission requirements.

* * * * *
    (z) Cybersecurity Items.
0
11. Supplement No. 2 is amended by adding paragraph (z) to read as 
follows:

Supplement No. 2 to Part 748--Unique Application and Submission 
Requirements

* * * * *

    (z) Cybersecurity items. For license applications to export, 
reexport, transfer (in-country) cybersecurity items, i.e., ECCNs 
4A005, 4D001.a (``specially designed'' or modified for 4A005 or 
4D004 items), 4D004, 4E001.a (``required'' for 4A005, 4D001.a 
(``specially designed'' or modified for 4A005 or 4D004) or 4D004 
items), 4E001.c, 5A001.j, 5B001.a (``specially designed'' for 
5A001.j items), 5D001.a (``specially designed'' or modified for 
5A001.j items), 5D001.c (``specially designed'' or modified for 
5A001.j or 5B001.a items) or 5E001.a (``required'' for 5A001.j, 
5B001.a, 5D001.a (``specially designed'' or modified for 5A001.j 
items) or 5D001.c (``specially designed'' or modified for 5A001.j or 
5B001.a items) items) you must follow the unique application 
requirements set forth in this paragraph (z). If the cybersecurity 
item has encryption or other ``information security'' functionality 
classified under ECCNs 5A002, 5D002, 5A992.c, 5D992.c or 5E002, all 
encryption registration and review requirements must be separately 
completed with BIS and the ENC Encryption Request Coordinator, Ft. 
Meade, MD, before license applications for a cybersecurity item will 
be considered, see Sec. Sec.  740.17 and 742.15 of the EAR.
    (1) In block 9 of the application (Special Purpose) indicate the 
phrase ``Cybersecurity Item.'' In addition to the information 
required by Sec.  748.3(b) of the EAR, submit the following 
information in a letter of explanation:
    (i) Whether the cybersecurity item has encryption or other 
``information security'' functionality, Encryption Registration 
Number (ERN) and encryption Commodity Classification Application 
Tracking System (CCATS) number(s);
    (ii) Whether the cybersecurity item has been previously 
classified or included in a license application submitted on or 
after May 20, 2015 for which all requirements of this section 
(including the questions set forth in paragraph (z)(1)(iii) of this 
section) have been satisfied. If so, then provide the Commodity 
Classification Automated Tracking System (CCATS) number(s) or issued 
license number(s).
    (iii) If the cybersecurity item has not been previously 
classified or included in a license application, then:
    (A) Describe the cybersecurity functions and user interfaces 
(e.g., Application Programming Interfaces (APIs), Command Line 
Interfaces (CLIs) or Graphical User Interfaces (GUIs)) that are 
implemented and/or supported. Explain which are for internal use 
private to the developer of the product, and/or which are for use by 
the customer or other operator.
    (B) Describe the cybersecurity functionality (including as 
related to ``intrusion software'') that is provided by third-party 
frameworks, platforms, tools, modules or components (if any). 
Identify the manufacturers of the cybersecurity items, including 
specific part numbers and version information as needed to describe 
the item. As applicable, describe whether the third-party 
cybersecurity software is statically or dynamically linked.
    (C) For items related to ``intrusion software,'' describe how 
rootkit or zero-day exploit functionality is precluded from the 
item. Otherwise, for items that incorporate or otherwise support 
rootkit or zero-day exploit functionality, this must be explicitly 
stated in the application.
    (2) Upon request, include a copy of the sections of source code 
and other software (e.g., libraries and header files) that implement 
or invoke the controlled cybersecurity functionality.

PART 772 [AMENDED]

0
12. The authority citation for part 772 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 
7, 2014, 79 FR 46959 (August 11, 2014).

0
13. Section 772.1 is amended by adding the term ``Intrusion software'' 
in alphabetic order to read as follows:

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

* * * * *
    Intrusion software. (Cat 4) ``Software'' ``specially designed'' or 
modified to avoid detection by `monitoring tools,' or to defeat 
`protective countermeasures,' of a computer or network-capable device, 
and performing any of the following:
    (a) The extraction of data or information, from a computer or 
network-capable device, or the modification of system or user data; or
    (b) The modification of the standard execution path of a program or 
process in order to allow the execution of externally provided 
instructions.
    Notes: 1. ``Intrusion software'' does not include any of the 
following:
    a. Hypervisors, debuggers or Software Reverse Engineering (SRE) 
tools;
    b. Digital Rights Management (DRM) ``software''; or
    c. ``Software'' designed to be installed by manufacturers, 
administrators or users, for the purposes of asset tracking or 
recovery.
    2. Network-capable devices include mobile devices and smart meters.
    Technical Notes: 1. `Monitoring tools': ``software'' or hardware 
devices, that monitor system behaviors or processes running on a 
device. This includes antivirus (AV) products, end point security 
products, Personal Security Products (PSP), Intrusion Detection Systems 
(IDS), Intrusion Prevention Systems (IPS) or firewalls.
    2. `Protective countermeasures': techniques designed to ensure the 
safe execution of code, such as Data Execution Prevention (DEP), 
Address Space Layout Randomization (ASLR) or sandboxing.
* * * * *

PART 774 [AMENDED]

0
14. 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

[[Page 28859]]

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 7, 2014, 79 FR 46959 (August 11, 2014).

Supplement No. 1 to Part 774--[Amended]

0
15. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 4 is amended by adding ECCN 4A005 after ECCN 4A004 to read as 
follows:

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

* * * * *
4A005 ``Systems,'' ``equipment,'' or ``components'' therefor, 
``specially designed'' or modified for the generation, operation or 
delivery of, or communication with, ``intrusion software''.

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 the entire entry............  RS Column 1
AT applies to entire entry................  AT Column 1
 

    License Requirement Note: All license applications for 4A005 
must include the information required in Supplement No. 2 to part 
748 of the EAR, paragraph (z). Also, all such cybersecurity items 
using or incorporating encryption or other ``information security'' 
functionality classified under ECCNs 5A002, 5D002, 5A992.c, 5D992.c 
or 5E002, must also satisfy the registration, review and reporting 
requirements set forth in Sec. Sec.  740.17, 742.15(b) and 748.3(d) 
of the EAR, including submissions to the ENC Encryption Request 
Coordinator, Ft. Meade, MD prior to applying for a license.

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

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

Special Conditions for STA

STA: License Exception STA may not be used to export, reexport, or 
transfer (in-country) commodities controlled by ECCN 4A005 to any 
destination.

List of Items Controlled

Related Controls: (1) ``Systems'', ``equipment'' and ``components'' 
described under ECCN 4A005 are classified under this ECCN, even if 
the ``systems'', ``equipment'' or ``components'' are designed or 
modified to use ``cryptography'' or cryptanalysis. (2) See 
Categories XI(b) and XIII in the International Traffic in Arms 
Regulations (ITAR) (22 CFR parts 120 through 130) and the U.S. 
Munitions List (22 CFR part 121). (3) See also ECCN 4D001.a 
(``development'' and ``production'' ``software''), 4D004 and 4E001.a 
and .c.
Related Definitions: See Sec.  772.1 of this EAR for the definition 
of ``intrusion software.''
Items: The list of items controlled is contained in the ECCN 
heading.

0
16. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 4, ECCN 4D001 is amended by:
0
a. Revising the Reason for Control paragraph in the License 
Requirements section;
0
b. Adding an entry for ``RS'' after the entry for ``NS'' in the table 
in the License Requirements section;
0
c. Removing the NP note after the table in the License Requirements 
section and adding in its place a License Requirement Note;
0
d. Revising the TSR paragraph in the List Based License Exceptions 
section;
0
e. Revising the Special Conditions for STA section;
0
f. Revising the Related Controls paragraph in the List of Items 
Controlled section;
0
g. Revising Items paragraph a.
    The revisions and addition read as follows:

4D001 ``Software'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, CC, AT

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
 
                                * * * * *
RS applies to 4D001.a (if ``specially       RS Column 1
 designed'' or modified for 4A005 or
 4D004).
 
                                * * * * *
 

    License Requirement Note: All license applications for 4D001.a 
(if ``specially designed'' or modified for 4A005 or 4D004) must 
include the information required in Supplement No. 2 to part 748 of 
the EAR, paragraph (z). Also, all such cybersecurity items using or 
incorporating encryption or other ``information security'' 
functionality classified under ECCNs 5A002, 5D002, 5A992.c, 5D992.c 
or 5E002, must also satisfy the registration, review and reporting 
requirements set forth in Sec. Sec.  740.17, 742.15(b) and 748.3(d) 
of the EAR, including submissions to the ENC Encryption Request 
Coordinator, Ft. Meade, MD prior to applying for a license.
* * * * *

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

* * * * *
TSR: Yes, except for: (1) ``software'' ``specially designed'' or 
modified for the ``development'' or ``production'' of commodities 
with an ``Adjusted Peak Performance'' (``APP'') exceeding 1.0 WT; or 
(2) ``software'' if ``specially designed'' or modified for the 
``development'' or ``production'' of commodities or ``software'' 
specified by ECCNs 4A005 or 4D004.
* * * * *

Special Conditions for STA

STA: License Exception STA may not be used to: (1) Ship or transmit 
``software'' ``specially designed'' or modified for the 
``development'' or ``production'' of equipment specified by ECCN 
4A001.a.2 or for the ``development'' or ``production'' of ``digital 
computers'' having an `Adjusted Peak Performance' (`APP') exceeding 
1.0 Weighted TeraFLOPS (WT) to any of the destinations listed in 
Country Group A:6 (See Supplement No.1 to part 740 of the EAR); or 
(2) ship or transmit ``software'' ``specially designed'' or modified 
for the ``production'' or ``development'' of commodities or 
``software'' specified by ECCNs 4A005 or 4D004, to any destination.

List of Items Controlled

Related Controls: (1) ``Software'' described under ECCN 4D001 (if 
``specially designed'' or modified for 4A005 or 4D004) is classified 
under this ECCN, even if the ``software'' is designed or modified to 
use ``cryptography'' or cryptanalysis. (2) See also the 
International Traffic in Arms Regulations (ITAR) (22 CFR parts 120 
through 130) and the U.S. Munitions List (22 CFR part 121).
* * * * *
Items: a. ``Software'' ``specially designed'' or modified for the 
``development'' or ``production'', of equipment controlled by 4A001, 
4A003, 4A004, 4A005 or ``software'' controlled by 4D (except 4D980, 
4D993 or 4D994).
* * * * *
0
17. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 4 is amended by adding ECCN 4D004 after ECCN 4D002 to read as 
follows:

4D004 ``Software'' ``specially designed'' or modified for the 
generation, operation or delivery of, or communication with, 
``intrusion software''.

License Requirements

Reason for Control: NS, RS, AT

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

    License Requirement Note: All license applications for 4D004 
must include the information required in Supplement No. 2 to part 
748 of this EAR, paragraph (z). Also, all such cybersecurity items 
using or incorporating encryption or other

[[Page 28860]]

``information security'' functionality classified under ECCNs 5A002, 
5D002, 5A992.c, 5D992.c or 5E002, must also satisfy the 
registration, review and reporting requirements set forth in 
Sec. Sec.  740.17, 742.15(b) and 748.3(d) of the EAR, including 
submissions to the ENC Encryption Request Coordinator, Ft. Meade, MD 
prior to applying for a license.

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

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: License Exception STA may not be used to export, reexport, or 
transfer (in-country) ``software'' controlled by ECCN 4D004 to any 
destination.

List of Items Controlled

Related Controls: (1) ``Software'' described under ECCN 4D004 is 
classified under this ECCN, even if the ``software'' is designed or 
modified to use ``cryptography'' or cryptanalysis. (2) See also the 
International Traffic in Arms Regulations (ITAR) (22 CFR parts 120 
through 130) and the U.S. Munitions List (22 CFR part 121). (3) See 
also ECCN 4E001.a.
Related Definitions: See Sec.  772.1 of the EAR for the definition 
of ``intrusion software.''
Items: The list of items controlled is contained in the ECCN 
heading.

0
18. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 4, ECCN 4E001 is amended by:
0
a. Revising the Reasons for Control paragraph in the License 
Requirements section;
0
b. Adding an entry for ``RS'' after the entry for ``MT'' in the table 
in the License Requirements section;
0
c. Removing the NP note after the table in the License Requirements 
section and adding in its place a License Requirement Note;
0
d. Revising the TSR paragraph in the List Based License Exceptions 
section;
0
e. Revising the Special Conditions for STA section;
0
f. Revising the Related Controls and Related Definitions paragraphs in 
the List of Items Controlled section;
0
g. Adding paragraph c to the Items paragraph of the List of Items 
Controlled section.
    The revisions and additions read as follows:

4E001 ``Technology'' as follows (see List of Items Controlled).

License Requirements

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

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
 
                                * * * * *
RS applies to 4E001.a ``technology'' (if    RS Column 1
 ``required'' for 4A005, 4D001.a (if
 ``specially designed'' or modified for
 4A005 or 4D004) or 4D004) and if
 ``required'' for 4E001.c.
 
                                * * * * *
 

    License Requirement Note: All license applications for 4E001.a 
``technology'' (if ``required'' for 4A005, 4D001.a (if ``specially 
designed'' or modified for 4A005 or 4D004) or 4D004) and if 
``required'' for 4E001.c must include the information required in 
Supplement No. 2 to part 748 of the EAR, paragraph (z). Also, all 
such cybersecurity items using or incorporating encryption or other 
``information security'' functionality classified under ECCNs 5A002, 
5D002, 5A992.c, 5D992.c or 5E002, must also satisfy the 
registration, review and reporting requirements set forth in 
Sec. Sec.  740.17, 742.15(b) and 748.3(d) of the EAR, including 
submissions to the ENC Encryption Request Coordinator, Ft. Meade, MD 
prior to applying for a license.
* * * * *

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

* * * * *
TSR: Yes, except for: ``technology'' for the ``development'' or 
``production'' of ``commodities'' with an ``Adjusted Peak 
Performance'' (``APP'') exceeding 1.0 WT, ``commodities'' in 4A005 
or ``software'' in 4D001.a (if ``specially designed'' or modified 
for 4A005 or 4D004) or ``required'' for 4D004; or ``technology'' 
specified by 4E001.c.
* * * * *

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of any of the following equipment 
or ``software'': a. Equipment specified by ECCN 4A001.a.2; b. 
``Digital computers'' having an `Adjusted Peak Performance' (`APP') 
exceeding 1.0 Weighted TeraFLOPS (WT); or .c ``software'' specified 
in the License Exception STA paragraph found in the License 
Exception section of ECCN 4D001 to any of the destinations listed in 
Country Group A:6 (See Supplement No. 1 to part 740 of the EAR); or 
to ship any ``technology'' specified by 4E001.a ``required'' for 
``commodities'' in 4A005 or ``software'' in 4D001.a (if ``specially 
designed'' or modified for 4A005 or 4D004), 4D004, or by 4E001.c, to 
any destination.

List of Items Controlled

Related Controls: (1) ``Technology'' described under ECCN 4E001.a 
(``required'' for equipment in 4A005 or ``software'' in 4D001.a (if 
``specially designed'' or modified for 4A005 or 4D004) or 4D004) or 
4E001.c is classified under this ECCN, even if it includes 
``technology'' for the ``development'' or ``production'' of 
cryptographic or cryptanalytic items. (2) See also the International 
Traffic in Arms Regulations (ITAR) (22 CFR parts 120 through 130) 
and the U.S. Munitions List (22 CFR part 121).
Related Definitions: See Sec.  772.1 for the definition of 
``intrusion software.''
Items:* * *
    c. ``Technology'' ``required'' for the ``development'' of 
``intrusion software''.

0
19. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 5, ECCN 5A001 is amended by:
0
a. Revising the Reason for Control paragraph in the License 
Requirements section;
0
b. Revising the first entry in the table in the License Requirements 
section;
0
c. Adding an entry for ``RS'' after the second entry in the table in 
the License Requirements section;
0
d. Adding a License Requirement Note after the table in the License 
Requirements section;
0
e. Revising the List Based License Exceptions section;
0
f. Revising the Special Conditions for STA section;
0
g. Revising the Related Controls paragraph of the List of Items 
Controlled section; and
0
h. Adding paragraph .j to the Items paragraph of the List of Items 
Controlled section.
    The revisions and additions read as follows:

5A001 Telecommunications systems, equipment, ``components'' and 
``accessories,'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, SL, AT

 
                                            Country chart (see supp. No.
                Control(s)                         1 to part 738)
 
NS applies to 5A001.a, .e, .b.5, f.3, .h    NS Column 1
 and .j.
 
                                * * * * *
RS applies to 5A001.j.....................  RS Column 1
 
                                * * * * *
 

    License Requirement Note: All license applications for 
cybersecurity items (5A001.j) must include the information required 
in Supplement No. 2 to part 748 of the EAR, paragraph (z). Also, all 
such cybersecurity items using or incorporating encryption or other 
``information security'' functionality

[[Page 28861]]

classified under ECCNs 5A002, 5D002, 5A992.c, 5D992.c or 5E002, must 
also satisfy the registration, review and reporting requirements set 
forth in Sec. Sec.  740.17, 742.15(b) and 748.3(d) of the EAR, 
including submissions to the ENC Encryption Request Coordinator, Ft. 
Meade, MD prior to applying for a license.
* * * * *

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

LVS: N/A for 5A001.a, .b.5, .e, .f, .h, and .j; $5000 for 5A001.b.1, 
.b.2, .b.3, .b.6, .d, and .g; $3000 for 5A001.c.
GBS: Yes, except 5A001.a, .b.5, .e, .f, .h, and .j.
CIV: Yes, except 5A001.a, .b.3, .b.5, .e, .f, .h, and .j.

Special Conditions for STA

STA: License Exception STA may not be used to ship any commodity in 
5A001.b.3, .b.5, or .h to any of the destinations listed in Country 
Group A:6 (See Supplement No. 1 to part 740 of the EAR), or to ship 
any commodity in 5A001.j to any destination.

List of Items Controlled

Related Controls: (1) See USML Category XI for controls on 
direction-finding ``equipment'' including types of ``equipment'' in 
ECCN 5A001.e and any other military or intelligence electronic 
``equipment'' that is ``subject to the ITAR.'' (2) See USML Category 
XI(a)(4)(iii) for controls on electronic attack and jamming 
``equipment'' defined in 5A001.f and .h that are subject to the 
ITAR. (3) ``Systems,'' ``equipment'' and ``components'' described 
under ECCN 5A001.j are classified under this ECCN even if the 
``systems,'' ``equipment'' or ``components'' are designed or 
modified to use ``cryptography'' or cryptanalysis. (4) ECCN 5A001.j 
includes a note that explicitly excludes equipment designed for 
marketing purposes, quality of service (QoS) or quality of 
experience (QoE) purposes. The intent of the entry is to capture 
only products that are not ``specially designed'' for legitimate 
network operator functions. The control has very specific parameters 
and includes only systems or equipment that perform all five of the 
capabilities listed in 5A001.j below. Equipment that is not 
described in the new ECCN 5A001.j entry because it does not have all 
five capabilities required is likely to be described in ECCNs 5A002 
or 5A992 if it has encryption functionality, or ECCNs 5A991 or 4A994 
if it does not. However, such equipment may not be sold separately 
with knowledge that it will be combined with other equipment to 
comprise a system described in new paragraph ECCN 5A001.j. (see 
Sec.  764.2(h) of the EAR) (5) See also 5A101, 5A980, and 5A991.
* * * * *
Items: * * *
    j. IP network communications surveillance ``systems'' or 
``equipment'', and ``specially designed'' components therefor, 
having all of the following:
    j.1. Performing all of the following on a carrier class IP 
network (e.g., national grade IP backbone):
    j.1.a. Analysis at the application layer (e.g., Layer 7 of Open 
Systems Interconnection (OSI) model (ISO/IEC 7498-1));
    j.1.b. Extraction of selected metadata and application content 
(e.g., voice, video, messages, attachments); and
    j.1.c. Indexing of extracted data; and
    j.2. Being ``specially designed'' to carry out all of the 
following:
    j.2.a. Execution of searches on the basis of `hard selectors'; 
and
    j.2.b. Mapping of the relational network of an individual or of 
a group of people.
    Note: 5A001.j does not apply to ``systems'' or ``equipment'', 
``specially designed'' for any of the following:
    a. Marketing purpose;
    b. Network Quality of Service (QoS); or
    c. Quality of Experience (QoE).
    Technical Note: `Hard selectors': data or set of data, related 
to an individual (e.g., family name, given name, email or street 
address, phone number or group affiliations).

0
20. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 5, ECCN 5B001 is amended by:
0
a. Revising the Reasons for Control paragraph of the License 
Requirements section;
0
b. Revising the table in the License Requirements section;
0
c. Adding a License Requirement Note after the table in the License 
Requirements section;
0
d. Revising the List Based License Exceptions section; and
0
e. Revising the Special Conditions for STA section.
    The revisions and addition to read as follows:

5B001 Telecommunication test, inspection and production equipment, 
``components'' and ``accessories,'' as follows (See List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT

 
                                              Country chart  (see supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to 5B001.a equipment,            NS Column 1
 ``components'' and ``accessories''
 ``specially designed'' for 5A001.j.
NS applies to entire entry (except 5B001.a  NS Column 2
 for 5A001.j).
RS applies to 5B001.a equipment,            RS Column 1
 ``components'' and ``accessories''
 ``specially designed'' for 5A001.j.
AT applies to entire entry................  AT Column 1
 

    License Requirement Note: All license applications for 
cybersecurity items (5B001.a equipment, ``components'' and 
``accessories'' ``specially designed'' for 5A001.j) must include the 
information required in Supplement No. 2 to part 748 of the EAR, 
paragraph (z). Also, all such cybersecurity items using or 
incorporating encryption or other ``information security'' 
functionality classified under ECCNs 5A002, 5D002, 5A992.c, 5D992.c 
or 5E002, must also satisfy the registration, review and reporting 
requirements set forth in Sec. Sec.  740.17, 742.15(b) and 748.3(d) 
of the EAR, including submissions to the ENC Encryption Request 
Coordinator, Ft. Meade, MD prior to applying for a license.
* * * * *

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

LVS: $5000, except N/A for 5B001.a (for 5A001.f.1 or .j)
GBS: Yes, except for 5B001.a (for 5A001.f.1 or .j)
CIV: Yes, except for 5B001.a (for 5A001.f.1 or .j)

Special Conditions for STA

STA: License Exception STA may not be used to ship 5B001.a equipment 
and ``specially designed'' ``components'' or ``accessories'' 
therefor, ``specially designed'' for the ``development'' or 
``production'' of equipment, functions or features specified by ECCN 
5A001.b.3, .b.5 or .h to any of the destinations listed in Country 
Group A:6 (See Supplement No.1 to part 740 of the EAR), or to ship 
any commodity in 5B001.a for equipment or systems specified by 
5A001.f.1. or .j to any destination.
* * * * *
0
21. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 5, ECCN 5D001 is amended by:
0
a. Revising the Reasons for Control paragraph in the License 
Requirements section;
0
b. Adding an entry for ``RS'' after the entry for ``NS'' in the table 
in the License Requirements section;
0
c. Adding a License Requirement Note after the table in the License 
Requirements section;
0
d. Revising the List Based License Exceptions section;
0
e. Revising the Special Conditions for STA section; and
0
f. Revising the Related Controls paragraph in the List of Items 
Controlled section.
    The revisions and additions read as follows:

5D001 ``Software'' as follows (see List of Items Controlled).

[[Page 28862]]

License Requirements

Reason for Control: NS, RS, SL, AT

 
                                              Country chart  (see supp.
                Control(s)                       No. 1 to part 738)
 
 
                                * * * * *
RS applies to 5D001.a ``software''          RS Column 1
 ``specially designed'' or modified for
 5A001.j, and 5D001.c ``software''
 ``specially designed'' or modified for
 5A001.j or 5B001.a.
 
                                * * * * *
 

    License Requirement Note: All license applications for 
cybersecurity items (5D001.a ``software'' ``specially designed'' or 
modified for 5A001.j, and 5D001.c ``software'' ``specially 
designed'' or modified for 5A001.j or 5B001.a) must include the 
information required in Supplement No. 2 to part 748 of the EAR, 
paragraph (z). Also, all such cybersecurity items using or 
incorporating encryption or other ``information security'' 
functionality classified under ECCNs 5A002, 5D002, 5A992.c, 5D992.c 
or 5E002, must also satisfy the registration, review and reporting 
requirements set forth in Sec. Sec.  740.17, 742.15(b) and 748.3(d) 
of the EAR, including submissions to the ENC Encryption Request 
Coordinator, Ft. Meade, MD prior to applying for a license.
* * * * *

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

CIV: Yes, except for ``software'' controlled by 5D001.a and 
``specially designed'' or modified for the ``development'' or 
``production'' of items controlled by 5A001.b.5, 5A001.f.1, 5A001.h 
and 5A001.j.
TSR: Yes, except for 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 ``software'' controlled by 5D001.a and 
``specially designed'' or modified for items controlled by 
5A001.b.5, 5A001.f.1, 5A001.h and 5A001.j.

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
5D001.a ``software'' ``specially designed'' or modified for the 
``development'' or ``production'' of equipment, functions or 
features, specified by ECCN 5A001.b.3, .b.5, .f.1, .h or .j; and for 
5D001.b. for ``software'' ``specially designed'' or modified to 
support ``technology'' specified by the STA paragraph in the License 
Exception section of ECCN 5E001 to any of the destinations listed in 
Country Group A:6 (See Supplement No.1 to part 740 of the EAR); and 
for 5D001.c. for ``software'' ``specially designed'' or modified to 
provide characteristics, functions or features of equipment or 
systems classified under ECCNs 5A001.f.1 or .j, or 5B001.a (for 
5A001.f.1 or .j)).

List of Items Controlled

Related Controls: (1) ``Software'' described under ECCN 5D001.a or 
.c (if ``specially designed'' or modified for 5A001.j) is classified 
under this ECCN, even if the ``software'' is designed or modified to 
use ``cryptography'' or cryptanalysis. (2) See also 5D980 and 5D991.
* * * * *
0
22. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 5, Part 1, ECCN 5E001 is amended by:
0
a. Revising the Reasons for Control paragraph in the License 
Requirements section;
0
b. Adding an entry for ``RS'' after the entry for ``NS'' in the table 
in the License Requirements section;
0
c. Adding a License Requirement Note after the table in the License 
Requirements section;
0
d. Revising the TSR paragraph in the List Based License Exceptions 
section;
0
e. Revising the Special Conditions for STA section; and
0
f. Adding paragraph (3) to the Related Control paragraph in the List of 
Items Controlled section.
    The revisions and additions read as follows:

5E001 ``Technology'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, SL, AT

 
                                              Country chart  (see supp.
                Control(s)                       No. 1 to part 738)
 
 
                                * * * * *
RS applies to 5E001.a for commodities       RS Column 1
 controlled under 5A001.j or ``software''
 controlled under 5D001.a (if ``specially
 designed'' or modified for 5A001.j), and
 5D001.c (if ``specially designed'' or
 modified for 5A001.j or 5B001.a) for RS
 reasons.
 
                                * * * * *
 

    License Requirement Note: All license applications for 
cybersecurity items (5A001.j or ``software'' controlled under 
5D001.a (if ``specially designed'' or modified for 5A001.j), and 
5D001.c (if ``specially designed'' or modified for 5A001.j or 
5B001.a)) must include the information required in Supplement No. 2 
to part 748 of the EAR, paragraph (z). Also, all such cybersecurity 
items using or incorporating encryption or other ``information 
security'' functionality classified under ECCNs 5A002, 5D002, 
5A992.c, 5D992.c or 5E002, must also satisfy the registration, 
review and reporting requirements set forth in Sec. Sec.  740.17, 
742.15(b) and 748.3(d) of the EAR, including submissions to the ENC 
Encryption Request Coordinator, Ft. Meade, MD prior to applying for 
a license.
* * * * *

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

* * * * *
TSR: Yes, except: N/A for ``technology'' controlled by 5E001.a if 
``required'' for the ``development'' or ``production'' of items 
controlled by 5A001.f.1. or .j, 5D001.a (if ``specially designed'' 
or modified for 5A001.f.1 or .j) or 5D001.c (if ``specially 
designed'' or modified for 5A001.j or 5B001.a) to any destination; 
or for 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'' controlled by 5E001.a for the 
``development'' or ``production'' of the following: (1) Items 
controlled by 5A001.b.5 or 5A001.h; or (2) ``Software'' controlled 
by 5D001.a that is ``specially designed'' or modified for the 
``development'' or ``production'' of equipment, functions or 
features controlled by 5A001.b.5 or 5A001.h.

Special Conditions for STA

STA: 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, functions or 
features specified by 5A001.b.3, .b.5 or .h; or for ``software'' in 
5D001.a that is specified in the STA paragraph in the License 
Exception section of ECCN 5D001 to any of the destinations listed in 
Country Group A:6 (See Supplement No.1 to part 740 of the EAR); or 
to ship any ``technology'' in 5E001.a if ``required'' for any 
commodity in 5A001.f.1 or .j, or if ``required'' for any 
``software'' in 5D001.a or .c (``specially'' or modified designed 
for any commodity in 5A001.f.1 or .j or 5B001.a (``specially 
designed'' for 5A001.f.1 or .j)), to any destination.

List of Items Controlled

Related Controls: * * * (3) ``Technology'' described under ECCN 
5E001.a if ``required'' for ``systems,'' ``equipment'' or 
``components'' classified under 5A001.j or ``software'' classified 
under 5D001.a (``specially designed'' or modified for 5A001.j) or 
5D001.c (``specially designed'' or modified for 5A001.j or 5B001.a) 
is classified under this ECCN even if it includes ``technology'' for 
the ``development'' or ``production'' of cryptographic or 
cryptanalytic items.
* * * * *
0
23. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 5 Part 2, ECCN 5A002 is amended by adding paragraph (4) to the 
Related Controls paragraph in the List of Items Controlled section to 
read as follows:

[[Page 28863]]

5A002 ``Information security'' systems, equipment ``components'' 
therefor, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: * * * (4) ``Systems,'' ``equipment'' and 
``components'' described under ECCNs 4A005 or 5A001.j are classified 
under ECCNs 4A005 or 5A001.j, even if the ``systems,'' ``equipment'' 
or ``components'' are designed or modified to use ``cryptography'' 
or cryptanalysis.
* * * * *
0
24. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 5 Part 2, ECCN 5D002 is amended by adding paragraph (3) to the 
Related Controls paragraph in the List of Items Controlled section to 
read as follows:

5D002 ``Software'' as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: * * * (3) ``Software'' described under ECCN 
4D001.a (``specially designed'' or modified for 4A005 or 4D004), 
4D004, 5D001.a (``specially designed'' or modified for 5A001.j) or 
5D001.c (``specially designed'' or modified for 5A001.j or 5B001.a) 
is classified under those ECCNs, even if the ``software'' is 
designed or modified to use ``cryptography'' or cryptanalysis.
* * * * *
0
25. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 5 Part 2, ECCN 5E002 is amended by revising the Related 
Controls paragraph in the List of Items Controlled section to read as 
follows:

5E002 ``Technology'' as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: (1) See also 5E992. This entry does not control 
``technology'' ``required'' for the ``use'' of equipment excluded 
from control under the Related Controls paragraph or the Technical 
Notes in ECCN 5A002 or ``technology'' related to equipment excluded 
from control under ECCN 5A002. This ``technology'' is classified as 
ECCN 5E992. (2) ``Technology'' described under ECCN 4E001.a 
(``required'' for equipment in 4A005 or ``software'' in 4D004), 
4E001.c, or 5E001.a (``required'' for 5A001.j or 5D001.a) that is 
designed or modified to use ``cryptography'' or cryptanalysis is 
classified under ECCNs 4E001.a or .c, or ECCN 5E001.a, respectively.
* * * * *

    Dated: May 11, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-11642 Filed 5-19-15; 8:45 am]
 BILLING CODE 3351-33-P