Document ID: BIS-2017-0004-1749
Agency: bis
Document Type: Rule
Title: Control of Firearms, Guns, Ammunition and Related Articles the President Determines No Longer Warrant Control under the United States Munitions List
Posted Date: 2020-01-23T05:00Z

[Federal Register Volume 85, Number 15 (Thursday, January 23, 2020)]
[Rules and Regulations]
[Pages 4136-4188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00573]

[[Page 4135]]

Vol. 85

Thursday,

No. 15

January 23, 2020

Part IV

Department of Commerce

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 Bureau of Industry and Security

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15 CFR Parts 732, 734, 736, et al.

 Control of Firearms, Guns, Ammunition and Related Articles the 
President Determines No Longer Warrant Control Under the United States 
Munitions List (USML); Final Rule

  Federal Register / Vol. 85 , No. 15 / Thursday, January 23, 2020 / 
Rules and Regulations  

[[Page 4136]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 734, 736, 740, 742, 743, 744, 746, 748, 758, 762, 
772, and 774

[Docket No. 191107-0079]
RIN 0694-AF47

Control of Firearms, Guns, Ammunition and Related Articles the 
President Determines No Longer Warrant Control Under the United States 
Munitions List (USML)

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

ACTION: Final rule.

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SUMMARY: On May 24, 2018, the Department of Commerce published a 
proposed rule in conjunction with a Department of State proposed rule 
to revise Categories I (firearms, close assault weapons and combat 
shotguns), II (guns and armaments), and III (ammunition/ordnance) of 
the USML and transfer items that no longer warrant control on the USML 
to the Commerce Control List (CCL). This final rule responds to and 
adopts changes based on the comments received on the Commerce proposed 
rule and is being published simultaneously with a final rule by the 
Department of State that will revise Categories I, II, and III of the 
USML to describe more precisely the articles warranting continued 
control on that list. These revisions complete the initial review of 
the USML that the Department of State began in 2011 and the conforming 
changes made to the EAR to control these items not warranting control 
under the International Traffic in Arms Regulations (ITAR).

DATES: This rule is effective March 9, 2020.

FOR FURTHER INFORMATION CONTACT: Steven Clagett, Office of 
Nonproliferation Controls and Treaty Compliance, Nuclear and Missile 
Technology Controls Division, tel. (202) 482-1641 or email 
steven.clagett@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    On May 24, 2018, the Department of Commerce (referred to henceforth 
as ``the Department'') published the proposed rule, Control of 
Firearms, Guns, Ammunition and Related Articles the President 
Determines No Longer Warrant Control Under the United States Munitions 
List (USML) (83 FR 24166) (referred to henceforth as the ``Commerce May 
24 rule'') in conjunction with a Department of State proposed rule to 
revise Categories I, II, and III of the USML (referred to henceforth as 
the ``State May 24 rule''). The Department of Commerce is issuing this 
final rule that describes how articles the President determines no 
longer warrant control under USML Category I--Firearms, Close Assault 
Weapons and Combat Shotguns; Category II--Guns and Armament; and 
Category III--Ammunition/Ordnance will be controlled on the CCL of the 
Export Administration Regulations (EAR) and is being published in 
conjunction with a final rule on Categories I, II, and III from the 
Department of State, Directorate of Defense Trade Controls (DDTC), 
completing the initial review of the USML that began in 2011 and making 
conforming changes to the EAR to control these items on the Commerce 
Control List (CCL).
    The changes described in this final rule and in the State 
Department's companion final rule on Categories I, II, and III of the 
USML are based on a thorough interagency review of those categories, 
after which the Department of State concluded that the items added to 
the CCL in this final rule do not provide a critical military or 
intelligence advantage to the United States and, in the case of 
firearms, do not have an inherently military function. The Departments 
of Defense, State, and Commerce have, therefore, determined that the 
EAR is the appropriate source of authority to control these firearms, 
ammunition, and other articles previously controlled under Categories 
I-III of the USML. There is a significant worldwide market for items in 
connection with civil and recreational activities such as hunting, 
marksmanship, competitive shooting, and other non-military activities.
    This final rule does not deregulate the transferred items. BIS will 
require authorization to export or reexport to any country a firearm or 
other weapon that is being moved from the USML to the CCL by this final 
rule, including releases of related technology and software to foreign 
persons in the United States. Rather than decontrolling firearms and 
other items, in publishing this final rule, BIS, working with the 
Departments of Defense and State, is continuing to ensure that 
appropriate regulatory oversight will be exercised over exports, 
reexports, and transfers (in- country) of these items while reducing 
the procedural burdens and costs of export compliance on the U.S. 
firearms industry and allowing the U.S. Government to make better use 
of its export control resources.
    Certain software and technology capable of producing firearms when 
posted on the internet under specified circumstances is being 
controlled under this final rule in order to protect important U.S. 
national security and foreign policy interests; however, communication 
of ideas regarding such software or technology is freely permitted. 
Moreover, nothing in this final rule prohibits U.S. persons within the 
United States from acquiring firearms of any type--there are other laws 
and regulations that control the acquisition of firearms in the U.S.

Structure of 600 Series

    BIS has created Export Control Classification Numbers (ECCNs), 
referred to as the ``600 series,'' to control items that will be 
removed from the USML and controlled under the CCL, or items from the 
Wassenaar Arrangement on Export Controls for Conventional Arms and Dual 
Use Goods and Technologies Munitions List (Wassenaar Arrangement 
Munitions List or WAML) that are already controlled elsewhere on the 
CCL.
    These ECCNs are referred to as the ``600 series'' because the third 
character in each of the new ECCNs is ``6.'' The first two characters 
of the ``600 series'' ECCNs serve the same function as any other ECCN 
as described in Sec.  738.2 of the EAR. The first character is a digit 
in the range 0 through 9 that identifies the Category on the CCL in 
which the ECCN is located. The second character is a letter in the 
range A through E that identifies the product group within a CCL 
Category. With few exceptions, the final two characters identify the 
WAML category that covers items that are the same or similar to items 
in a particular ``600 series'' ECCN. Category II of the USML and 
category ML2 of the WAML cover large caliber guns and other military 
weapons such as: Howitzers, cannon, mortars, anti-tank weapons, 
projectile launchers, military flame throwers, and recoilless rifles.
    Items that are currently controlled in Category II of the USML will 
be controlled on the CCL under four new ``600 series'' ECCNs. Placement 
of the items currently in USML Category II into the CCL's 600 series is 
consistent with existing BIS practice of using 600 series ECCNs to 
control items of a military nature.
    Items currently controlled in Categories I and III of the USML will 
be controlled in new ECCNs in which the third character is a ``5.'' 
These items are not appropriate for 600 series control because, for the 
most part, they have

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civil, recreational, law enforcement, or other non-military 
applications. As with 600 series ECCNs, the first character represents 
the CCL category, the second character represents the product group, 
and the final two characters represent the WAML category that covers 
items that are the same or similar to items in the ECCN.

Relation to USMIL

    Pursuant to section 38(a)(1) of the Arms Export Control Act (AECA), 
all defense articles controlled for export or import, or that are 
subject to brokering controls, are part of the USML under the AECA. All 
references to the USML in this final rule are to the list of defense 
articles that are controlled for purposes of export, temporary import, 
or brokering pursuant to the ITAR, 22 CFR parts 120 through 130, and 
not to the list of AECA defense articles on the United States Munitions 
Import List (USMIL) that are controlled by the Bureau of Alcohol, 
Tobacco, Firearms and Explosives (ATF) for purposes of permanent import 
under its regulations at 27 CFR part 447. All defense articles 
described in the USMIL or the USML are subject to the brokering 
controls administered by the U.S. Department of State in part 129 of 
the ITAR. The transfer of defense articles from the ITAR's USML to the 
EAR's CCL for purposes of export controls does not affect the list of 
defense articles controlled on the USMIL under section 38 of the AECA, 
22 U.S.C. 2778, for purposes of permanent import or brokering controls.

Overview

    For the Commerce May 24 rule, BIS received nearly 3,000 comments 
and posted 1,540 unique comments and 135 bulk comments, which were 
representative of issues raised by 1,256 commenters. BIS appreciates 
the constructive comments it received to improve the Commerce May 24 
rule and incorporated changes where appropriate. BIS also received many 
comments that were outside the scope of the Commerce May 24 rule and 
thus that are not addressed here. The Commerce May 24 rule and this 
final rule address U.S. export controls. BIS does not regulate the 
domestic sale or use of firearms in the United States, or the transfer 
of firearms or related software or technology between U.S. persons 
within the United States.
    BIS reviews the comments it received in the preamble to this final 
rule in three parts. First, BIS describes the comments of general 
applicability. Then, it describes the comments received on specific 
proposed provisions included in the Commerce May 24 rule. Finally, this 
final rule describes the changes being adopted from the proposed rule 
and revisions being made to what was proposed in the Commerce May 24 
rule. As this final rule is being published in conjunction with the 
companion Department of State rule, the preamble may also reference the 
State Department's analysis related to these changes.

Comments of General Applicability

USML Review Criteria

    Comment 1: Multiple commenters took issue with the proposed 
transfer from the USML to the CCL of weapons that the Department of 
State determined, in conjunction with its interagency partners 
(including BIS), are not inherently for military end use, citing the 
fact that military and law enforcement personnel regularly use them. 
Many commenters asserted that being commercially available is not a 
good indicator of whether these weapons merit the oversight of the 
Department of State. In addition, several commenters disputed that the 
U.S. market should be the basis for assessing the commercial 
availability of firearms, as this is not the market to which the 
proposed rule would be directed. Many commenters also asserted that 
semi-automatic weapons should not be seen as just another product to be 
promoted, bought, and sold like washing machines or any other consumer 
product. Commenters supportive of the rule, however, agreed that export 
controls of commercial firearms and ammunition which are not inherently 
military, have no critical military or intelligence advantage, and have 
predominant commercial applications correctly belong under the EAR.
    BIS response: The fact that a military uses a specific piece of 
hardware is not a dispositive factor when determining whether it has an 
inherently military function. Given that the majority of the items 
referenced in these comments that will transfer to the CCL through this 
final rule are widely available in retail outlets in the United States 
and abroad, and widely utilized by the general public in the United 
States, it is reasonable for the Department of State to determine that 
they do not serve an inherently military function, absent specific 
characteristics that provide military users with significantly enhanced 
utility, such as automatic weapons, sound suppressors, and high 
capacity magazines.
    With respect to revisions of Categories I-III, the review was 
focused on identifying the defense articles that are now controlled on 
the USML that are either (i) inherently military and otherwise warrant 
control on the USML or (ii) if of a type common to non-military 
firearms applications, possess parameters or characteristics that 
provide a critical military or intelligence advantage to the United 
States. If a defense article satisfies one or both of those criteria, 
it remained on the USML. For example, while the U.S. military supplies 
some of its service members with sidearms for military use, a sidearm 
also has many uses outside of the military, such that its function is 
not inherently military and therefore a sidearm does not warrant 
control on the USML. Alternatively, squad automatic weapons do not 
generally have such non-military uses and will remain controlled on the 
USML. Any single non-military use, however, does not negate such a 
weapon's inherently military function.
    BIS notes that the scope of items ``subject to the EAR,'' includes 
basic commercial items, dual-use items, and military items not 
warranting ITAR control. The EAR control structure is well-suited to 
control this range of items, and BIS has particular historical 
expertise in controlling dual-use items. The Departments of State and 
Commerce also recognize that there are variations in commercial 
availability of firearms, but these variations do not overcome the 
Department of State's assessment that the subject firearms do not 
provide a critical military or intelligence advantage such that they 
warrant control under the ITAR. In addition, all exports of firearms 
are subject to the laws of the importing country, and the U.S. 
Government does not issue licenses for exporters to ship firearms to 
countries where the end use is illegal.
    Comment 2: Many commenters asserted that many semi-automatic rifles 
are easily converted to fully automatic firearms and for this reason 
semi-automatic firearms and the parts and components needed to do this 
should be retained on the USML.
    BIS response: BIS agrees that certain components may be used to 
convert a semi-automatic firearm into a fully automatic firearm. A 
fully automatic weapon is subject to the ITAR. The component(s) needed 
to turn a semi-automatic into a fully automatic are also retained on 
the USML. Therefore, the export of the component needed to turn the 
semi-automatic into a fully automatic would require an ITAR license or 
other approval. In addition, if the ITAR component was incorporated 
into the semi-automatic firearm, the now automatic weapon would be

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regulated by the ITAR as an automatic weapon and because of the 
inclusion of the ITAR component within the firearm. To address exports 
of semi-automatic firearms intended to be made automatic with a 
foreign-origin component that was not subject to the ITAR, BIS as a 
result of this comment has revised Sec.  740.2 in this final rule to 
restrict the use of EAR license exceptions involving these components 
or parts, as described below in the regulatory changes made in this 
final rule.

Commerce's Mission and the Regulation of Firearms

    Comment 3: Many commenters expressed concerns about the role and 
function of BIS regarding the items that are transferred from the USML 
to the CCL. Some commenters expressed concerns that BIS has neither the 
appropriate resources nor the appropriate expertise or mission to 
process associated applications for exports of firearms. Several 
commenters asserted BIS is not set up for the proper vetting of those 
parties in export transactions to ensure that they are not acting as 
middlemen for terrorists or other subversive entities that will use 
them against our troops or our allies or, even worse, civilian 
populations. Several other commenters asserted that BIS's enforcement 
office, with no staff in Latin America, Africa, or many other parts of 
the world, is not equipped to take the same level of preventive 
measures for end-use controls. Many commenters asserted that the 
transfer of these firearms to Commerce control is inconsistent with the 
statutory framework enacted by Congress to regulate the export of arms.
    BIS response: The mission of BIS is to advance U.S. national 
security, foreign policy, and economic objectives by ensuring an 
effective export control and treaty compliance system and promoting 
continued U.S. strategic technology leadership. BIS controls many items 
on the CCL that implement U.S. commitments to the Wassenaar Arrangement 
and other multilateral regimes related to national security. These 
controls are supplemented by U.S. controls on additional items as well 
as broad catch-all controls targeting end uses and end users of 
concern.
    BIS licenses are subject to an interagency review process that 
includes review by the Departments of State, Defense, and Energy, which 
allows BIS to supplement its technical expertise with that of its 
interagency partners on matters of national security, foreign policy, 
regional stability, and national defense. The interagency review 
process for Commerce licenses is specified in Executive Order 12981 and 
in part 750 of the EAR. The well-established and transparent 
interagency review process (including specifying the timelines for each 
step of the review process) ensures that a variety of perspectives and 
expertise from these U.S. Government agencies are able to inform the 
Commerce license review process to ensure only those exports that are 
consistent with U.S. export control interests will be approved. BIS 
also emphasizes that it has flexibility in how it approves licenses and 
can include additional safeguards as may be warranted. The interagency 
review process also helps to inform how licenses are approved.
    BIS has decades of experience licensing firearms and related items 
that has prepared it well for licensing these additional firearms and 
related items that this final rule moves to the CCL. BIS is also 
prepared because of its experiences with licensing other items that 
have moved from the USML to the CCL, including such sensitive items as 
components ``specially designed'' for use in military aircraft, and 
certain ``spacecraft,'' including satellites, and space vehicles. In 
addition, BIS estimates that existing staff will be able to manage the 
anticipated increased workload of approximately 6,000 additional 
license applications.
    In addition to its experience in the licensing arena, BIS has 
substantial law enforcement experience. BIS's Export Enforcement (EE) 
is a dedicated law enforcement organization recognized for its 
expertise, professionalism, integrity, and accomplishments. EE 
accomplishes its mission through preventive and investigative 
enforcement activities and then, pursuing appropriate criminal and 
administrative sanctions against export violators. EE works with the 
Department of Justice to impose criminal sanctions for violations, 
including incarceration and fines, and with the Office of Chief Counsel 
for Industry and Security to impose civil fines and denials of export 
privileges. EE also works closely with other federal law enforcement 
agencies, including the Federal Bureau of Investigation and the 
Department of Homeland Security, when conducting investigations or 
preventative actions.
    EE has Export Control Officers (ECOs) in offices that cover 
different regions of the world and are not limited to the specific 
country in which the EE personnel are located. The ECOs are 
supplemented by other personnel who engage in enforcement-related 
activities. For example, BIS regularly sends BIS enforcement agents on 
temporary duty assignments overseas under the Sentinel Program where 
they go to areas not easily covered by existing ECOs. BIS also works 
with certain foreign governments on enforcement as well as 
transshipment issues. In conducting pre-license checks or post shipment 
verifications, BIS also uses the resources the Department has with 
various Foreign Commercial Service (FCS) officers that are located at 
embassies and consulates around the world. Upon BIS's request, 
Department of State Foreign Service Officers at embassies and 
consulates often assist BIS with pre-license checks when the FCS is not 
present.
    BIS has resources it and the other agencies use to identify parties 
of concern to transactions, not all of which are public. The 
information BIS and other agencies use to vet licenses and transactions 
is not static and is being continuously improved to better target and 
exclude entities or individuals that should not be receiving items 
subject to the EAR.
    BIS also notes that this final rule imposes a requirement to file 
Electronic Export Information (EEI) in Automated Export System (AES) 
for nearly all exports of firearms being moved to the CCL. The EAR 
includes robust recordkeeping requirements that have been enhanced 
further for the firearms being moved to the CCL. BIS can and does on a 
regular basis contact parties to a transaction to request all records 
related to a particular export or reexport or series of exports or 
reexports. These record requests may also involve in-person visits from 
representatives of EE.
    BIS does not agree that the controls will be inconsistent with the 
statutory framework enacted by Congress to regulate the export of 
firearms. The firearms that warrant ITAR control will continue to be 
subject to the AECA and its requirements as applicable. The firearms 
not warranting ITAR control that this final rule will control under the 
EAR will be subject to the Export Control Reform Act of 2018 (ECRA) (50 
U.S.C. 4801-4852). For example, BIS has regulated long barrel shotguns 
(a type of firearm) under the statutory framework enacted by Congress 
in the earlier Export Administration Act (EAA) and now under ECRA. The 
same will be true for the firearms that this final rule adds to the 
CCL. Congress stated that one of the purposes of ECRA is ``[t]o control 
the release of items for use in--(i) the proliferation of . . . 
conventional weapons; (ii) the acquisition of destabilizing numbers or 
types of conventional weapons; (iii) acts of terrorism . . .'' 50 
U.S.C. 4811(2)(A).
    Comment 4: One commenter asserted that BIS does not have resources 
to enforce export controls, even before the

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addition of 30,000 firearms export licenses as a result of this rule 
predicted by the Commerce May 24 rule.
    BIS response: BIS clarifies here that the reference to 30,000 
licenses in the Commerce May 24 rule represented the increase as a 
result of the total USML to CCL review process, not solely the USML 
Categories I-III items. The estimate of 10,000 licenses is the number 
of anticipated State licenses that will be impacted by the transfer to 
Commerce in the Commerce May 24 rule. The larger 30,000 number was 
included for context for the overall USML to CCL review process and its 
implementation. As noted in the response to Comment 3 above, BIS 
estimates the transfer resulting in approximately 6,000 license 
applications. BIS has invested considerable effort in assessing the 
increased licensing and enforcement responsibilities that will be 
incurred following publication of this final rule and has determined 
that it is within its means and resources to effectively administer the 
subject export controls.

The Effect of the Shift in Regulatory Jurisdiction of Certain Firearms

    Comment 5: Several commenters asserted that reducing regulations on 
firearms and ammunition is dangerous. One commenter asserted that 
moving firearms to the CCL where they would be subject to loosened 
controls seems inconsistent with enhancing national security. Another 
commenter asserted that as even the National Rifle Association (NRA) 
has acknowledged, ``items on the USML controlled under ITAR are 
generally treated more strictly, whereas regulation under the CCL is 
more flexible.'' Many commenters asserted that the proposal weakens 
controls over semi-automatic assault weapons including AR-15s and AK-
47s, 50 caliber sniper rifles, and high-capacity ammunition magazines.
    BIS response: The EAR control structure is more flexible and will 
reduce the burden on the regulated, but the items will still be 
controlled. For example, the EAR is a more flexible control structure 
because it does not require a purchase order for a license. This is 
more efficient and flexible than the ITAR but does not undermine U.S. 
national security. The applicant still needs to specify the parties to 
the license, end use, and items to be authorized, but not having to 
present a purchase order allows a more flexible licensing arrangement. 
The ability under the EAR to create country-based license exceptions, 
e.g., License Exception Strategic Trade Authorization (STA), is another 
example. License Exception STA will only be available for the .x parts 
and components under 0A501, but this is another example of the more 
flexible EAR control structure. In other words, greater flexibility 
under the EAR does not mean decontrol.
    Further, having the ITAR control items that are in commercial use 
and do not have an inherent military function does not help promote 
U.S. national security, because it takes time and resources away from 
the Department of State that could be better used to focus on items 
that do warrant ITAR control. BIS has decades of experience in 
regulating dual-use items, including long barreled shotguns controlled 
under 0A984 and certain chemicals and toxins that have commercial 
applications, but are controlled for chemical and biological weapons 
reasons, e.g., ricin and sarin gas. See, e.g., 50 U.S.C. 4811(2)(A)(i) 
(stating that one of the policies of ECRA is to control the 
proliferation of weapons of mass destruction). BIS also has a proven 
track record for licensing and enforcing the controls for other items 
that have moved from USML to the CCL.
    BIS further clarifies that the AK-47 automatic firearm and any 
other automatic firearm are retained on the USML. The semi-automatic 
firearms this rule adds to the CCL will require a U.S. Government 
authorization for export.
    Comment 6: One commenter noted that according to the State May 24 
rule, ``The Department of Commerce estimates that 4,000 of the 10,000 
licenses that were required by the [State] Department will be eligible 
for license exceptions or otherwise not require a separate license 
under the EAR.'' The commenter noted that the Commerce May 24 rule 
clarifies, ``The other 4,000 applicants may use license exceptions 
under the EAR or the ``no license required'' designation, so these 
applicants would not be required to submit license applications under 
the EAR.'' The commenter asserted that ``while it recognizes that other 
forms of oversight may be available, this dramatic difference in the 
number of licenses raises our concern.''
    BIS response: This comment on the meaning of the 4,000 Department 
of State licenses that will not require a license under the EAR creates 
a good opportunity for BIS to clarify how the EAR controls are 
structured. Under the EAR, an exporter does not have a right to export. 
If the EAR does not impose a license requirement or some other 
prohibition, the exporter may proceed under the No License Required 
(NLR) designation. The NLR designation may be available for certain 
0x5zz.y exports, but otherwise all other exports will require a U.S. 
Government authorization. Therefore, the reference to 6,000 being 
authorized under licenses and 4,000 under license exceptions and a 
small subset as NLR, is not a dramatic change. When BIS imposes a 
license requirement under the EAR, this means the exporter will need to 
meet all of the applicable requirements of a license exception, or 
obtain a license from BIS to proceed with the export. The license 
exceptions or portions of license exceptions that will be available for 
these items moved to the CCL, including some of the new requirements 
and limitations added, will be sufficient to protect U.S. export 
control interests.

3D Printing of Firearms

    Comment 7: Three-dimensional (3D) printing is a type of additive 
manufacturing based on the principle of combining numerous, extremely 
thin layers of a physical material (including plastics, metals, and 
even living cells) in a controlled build process and joining them to 
gradually build up a physical, three-dimensional object. Computer 
controlled manufacturing may be either subtractive or additive. 
Subtractive manufacturing includes traditional manufacturing methods 
such as turning, grinding or milling, where metal or other material is 
removed from the base shape to form the final product. For example, you 
take a steel block and remove material until it becomes the final item. 
In additive manufacturing, which is often referred to as 3D printing, 
material such as metal or plastic is laid down in very thin layers one 
upon the other fusing together until the final net shape is achieved. 
In both instances, the adding or removing of the material is controlled 
by a computer without human intervention. 3D printers utilize 
electronic digital files to process the materials into a physical 
object, and these files can be distributed over the internet. A 3D 
printer or computer numerically-controlled (CNC) equipment uses 
Computer Aided Manufacturing (CAM) files in G-code or AMF format as 
executable code to produce certain items. There are currently 
technological limitations for the effectiveness of 3D printing of 
firearms, but the concept has been demonstrated and the ability to 
manufacture commercially viable firearms is inevitable given the 
increasing improvements of 3D printing equipment and 3D printing 
materials. Congress directed that the export control system under ECRA 
is intended to have ``the flexibility to be adapted to address new 
threats in the future,'' and this final rule implements that 
instruction. 50 U.S.C. 4811(8).

[[Page 4140]]

    Technology and software are required for 3D printing of firearms 
and are critical for the 3D printing manufacturing process. Publicly 
posting such technology and software online without restriction creates 
the risk that foreign persons and countries, including countries of 
concern, will be able to obtain technology and software for 3D printing 
of firearms. In the absence of controls on the export, reexport, or in-
country transfer of such technology and software, such items could be 
easily used in the proliferation of conventional weapons, the 
acquisition of destabilizing numbers of such weapons, or for acts of 
terrorism. As noted earlier, Congress expressly directed that ECRA 
should be used to address these risks. 50 U.S.C. 4811(2)(A).
    Like 3D printing, CNC milling or machining is an automated 
manufacturing process controlled by technology and software. CNC 
milling/turning/grinding are all subtractive manufacturing processes in 
which the computerized equipment removes layers of material from a 
base--known as the workpiece or the blank--to produce a manufactured 
part or item. As with 3D printing, the posting online of CNC technology 
and software needed to create working firearms creates export control 
concerns.
    Under the ITAR, the unrestricted public dissemination of technical 
data (as defined in section 120.10 of the ITAR) in a manner that allows 
access by foreign persons--including through the internet--is an export 
requiring appropriate authorization. For purposes of the CCL, Commerce 
has historically taken the approach (with limited exceptions) that 
material is not subject to export control if it has been ``published'' 
within the meaning of 15 CFR 734.7, including through posting on the 
internet. The proposed rules published by the Departments of State and 
Commerce took these differences in the ITAR and EAR control structures 
into account, and the Commerce proposed rule acknowledged these 
differences to ensure commenters had an opportunity to fully take these 
differences into account when submitting their comments on the Commerce 
rule. See page 24167 of the Commerce May 24 rule and 15 CFR 734.7.
    Comments on the Commerce proposed rule reflected the commenters' 
understanding of these differences between the ITAR and EAR control 
structures. BIS received many comments expressing concerns about 3D 
printing of firearms and whether appropriate controls would be in place 
under the EAR. It also received a small number of commenters that 
supported the part 734 criteria. The commenters critical of the part 
734 criteria provided the following input:
    (1) Part 734 criteria should be changed to regulate 3D printing, 
even if the information would otherwise be publicly available. These 
commenters were concerned that the application of the part 734 criteria 
appears to give rise to the possibility of widespread and openly 
sanctioned circulation of open source, non-proprietary instructions for 
using computer-aided design (CAD) files to produce operable firearms 
via 3D-printing technology, or text files to produce such firearms via 
CNC milling of the firearms. Commenters requested BIS to weigh the fact 
that the part 734 criteria would make posting on the internet of ECCN 
0E501 technology (e.g., 3D printer specs) for the production of an ECCN 
0A501 firearm publicly available information that is no longer subject 
to the EAR.
    (2) Allowing 3D-printed gun technology and software to be posted 
freely online for use with 3D printers will make it easier to obtain 
firearms in the U.S. and abroad. These commenters were concerned that 
the combination of internet dissemination and do-it-yourself 3D 
production is problematic because the government would have no 
oversight of the producer, the end use or the end user of the firearm. 
Other commenters in this area were greatly concerned about the 
perceived loss of controls on 3D gun-printing plans, which these 
commenters asserted has increasingly assisted bad actors in enhancing 
their capabilities to inflict atrocities around the world. Several 
commenters cited Defense Distributed v. Department of State, a lawsuit 
filed in the U.S. District Court for the Western District of Texas and 
appealed to the U.S. Court of Appeals for the Fifth Circuit,, in 
support of the State Department's decision to restrict the 3D printing 
of firearms under the ITAR (i.e., requiring appropriate authorization 
under the ITAR prior to allowing unrestricted posting on the internet).
    (3) Unregulated 3D printing would undermine U.S. efforts, as well 
as governments overseas, to vet parties obtaining firearms, and to 
track 3D printed firearms. These commenters noted that with access to 
3D printing machines and plans on how to build a gun, anyone could 
circumvent U.S. laws that seek to prevent known criminals from 
obtaining U.S. firearms. Other commenters in this area were 
particularly concerned that these changes would result in an increase 
in the number of untraceable firearms in circulation because as 3D 
printing technology becomes more widely available, the likelihood that 
it may be used to construct operable firearms that are exempt from 
serialization requirements would increase.
    (4) The transfer of control of these items to the CCL would 
undermine longstanding U.S. efforts to counter proliferation of small 
arms in the world. Commenters in this area noted that they couldn't 
understand how allowing untraceable 3D printing of firearms would serve 
U.S.-recognized goals to combat illicit trafficking of firearms. 
Commenters in this area also noted that the United States is the 
world's largest donor, as the commenter understands it, to helping 
countries build their ability to trace weapons, secure weapons 
stockpiles, and to destroy those stocks when warranted. However, 
according to the commenter, this transfer of authority to Commerce 
appears to open the door to unfettered 3D printing of firearms, which 
threatens to undermine nearly all those efforts.
    One commenter asserted that the proposed changes may result in 
increased circulation of plans for non-automatic weapons produced by 3D 
printing technology, and this may be at odds with the Wassenaar 
Arrangement.
    A small number of commenters supported the application of the 
criteria in part 734 and emphasized that the information is so widely 
available in various formats that trying to control it would not be 
practical or warranted. One commenter noted that America boasts 
hundreds of millions of privately-owned firearms and has produced 
countless books, magazine articles, videos, websites, and online forums 
that exhaustively detail firearm technology and use. Thus, this 
commenter asserted it is difficult to imagine any information about the 
design, development, production, manufacturing, and use of firearms 
that is not already within the public domain and this same information 
is commonly available overseas. Other commenters that supported the 
part 734 criteria asserted that they had concerns generally over their 
First Amendment rights being possibly violated unless the criteria in 
part 734 applied equally to information posted online. These commenters 
requested an end to any harassing or censorship of firearm instructors 
within the U.S., as well as bloggers, writers, and those posting online 
guides or tutorials discussing technology about defense items because 
these activities seem to be a clear violation of the First Amendment 
right to free speech. Given the foreign policy and national security 
interests at stake, Commerce believes that the restrictions imposed by 
this rule

[[Page 4141]]

are appropriately tailored. Commerce is also aware of, and has taken 
into account, the constitutional and statutory concerns raised by the 
plaintiffs in the Defense Distributed case and by the plaintiffs in 
Washington v. Dep't of State, No. 2:18-cv-01115-RSL (W.D. Wash.). 
Commerce also notes that it has received correspondence from members of 
Congress concerning the issues raised in Defense Distributed.
    BIS response: The Commerce May 24 proposed rule addressed the 
application of part 734, including Sec.  734.7, for items (specifically 
for certain information and software) proposed for transfer from USML 
Categories I-III (see 83 FR 24167). These criteria support the free 
exchange of public information and, as a general matter, do not warrant 
being changed. However, the concerns commenters raised about the 
specific application of part 734 criteria to 3D printing of firearms 
suggests that modification to the proposed controls is warranted.
    With the transfer of certain firearms from the USML to the CCL, 
rifles, pistols, revolvers and related parts and components will fall 
within ECCN 0A501, and BIS will be responsible for their licensing. 
This transfer adds to Commerce's existing licensing jurisdiction over 
most shotguns and shotgun shells as well as optical sighting devices. 
The items that remain on the ITAR include fully automatic and selective 
fire weapons, weapons for caseless ammunitions, silencers and certain 
high capacity (50 rounds or greater) magazines, and certain military-
specific ammunition such as tracers.
    BIS recognizes that several commenters, including a large number of 
private citizens, expressed concern over global access to 3D printing 
technology and software with the transfer of certain firearms to the 
CCL. BIS also recognizes that several commenters and plaintiffs in 
Washington v. Dep't of State raised concerns about risks to public 
safety related to domestic access to 3D printing technology and 
software. BIS shares the concerns raised over the possibility of 
widespread and unchecked availability of the software and technology 
internationally, the lack of government visibility into production and 
use, and the potential damage to U.S. counter proliferation efforts. In 
this final rule, BIS addresses the concerns raised about 3D printing of 
firearms by making certain technology and software capable of producing 
firearms subject to the EAR when posted on the internet under specified 
circumstances. This control will help ensure that U.S. national 
security and foreign policy interests are not undermined by foreign 
persons' access to firearms production technology. Although the 
Department of State determined that such technology and software do not 
warrant continued control under the USML, maintaining controls over 
such exports under the EAR remains in the national security and foreign 
policy interests of the United States, as described below. As noted in 
other places in the Commerce final rule, the movement of items from the 
USML is not a decontrol, and appropriate controls must be in place to 
protect U.S. national security and foreign policy interests, such as by 
maintaining Commerce licensing authority over certain technology and 
software capable of producing firearms subject to the EAR when posted 
on the internet under specified circumstances as described in this 
final rule. And although the domestic transfer of commodities is 
outside the purview of BIS jurisdiction, the concerns related to the 
unrestricted posting of CAD files on the internet, more accurately 
described in this final rule as CAM files, have been addressed in this 
final rule and nothing in this final rule affects existing federal or 
state laws that pertain to the manufacture, possession, use, or 
commercial sale of firearms.
    BIS provides more information about the specific changes below 
under the Description of Regulatory Changes under the heading Revision 
of ``Published.''
    BIS does not agree with the commenter that stated that the part 734 
criteria are at odds with the Wassenaar Arrangement. As described both 
in the proposed rule and this final rule, part 734 remains consistent 
with the Wassenaar Arrangement. BIS's changes in this final rule, 
however, ultimately addressed this commenter's concern.
    In response to commenters who favored the part 734 criteria as 
outlined in the proposed rule, BIS notes that information regarding 
firearms, including information for production of firearms, is often 
widely available, and nothing described below would restrict persons 
from publishing books or magazines, such as those that could be found 
in a local public library, and that the changes made to part 734 
described below are limited to addressing a specific fact pattern 
(posting on the internet of certain types of files) that warrants U.S. 
Government oversight to ensure unrestricted releases are not being made 
to persons of concern outside the United States or to foreign persons 
in the United States. BIS also took into account these commenters' 
support for the part 734 criteria and their First Amendment concerns 
but did not adopt the approach that they advocated. Given concerns 
regarding First Amendment restrictions the control is appropriately 
tailored to only impact technology and software in an electronic 
format, such as AMF or G-code, that is ready for direct insertion into 
a computer numerically controlled machine tool, additive manufacturing 
equipment to produce the firearm frame or receiver or complete firearm. 
This technology and software are functional in nature, having the 
capability to cause a machine to use physical materials to produce a 
firearm frame or receiver or complete firearm. Limitations on the 
dissemination of such functional technology and software do not violate 
the right to free expression under the First Amendment. Nor does the 
final rule violate the right to keep and bear arms under the Second 
Amendment. The rule does not prohibit U.S. persons within the United 
States from acquiring firearms of any type; indeed, nothing in this 
rule prohibits persons within the United States from developing, 
discussing, or transferring by hand or mail (e.g., by the U.S. Postal 
Service or a common carrier) CAM files related to 3D-printing 
technology and software. The domestic transfer of commodities is 
outside of the scope of BIS jurisdiction and would be within the 
purview of domestic law. The release of controlled technology in the 
United States would only be regulated to the extent it would constitute 
a deemed export (i.e., release to a foreign person). This means 
transfers between U.S. persons within the United States are not 
regulated under the EAR so long as there is no release to a foreign 
national. The ITAR takes a similar approach. BIS's approach in using 
targeted changes is not intended to otherwise change the other criteria 
in part 734 that these commenters assert they strongly support.
    In response to the comments received on the proposed rule, BIS has 
reflected on the need to take into account various interests in 
regulating technology and software for the 3D printing of firearms. At 
the time of the proposed rule, BIS believed that its existing framework 
struck the appropriate approach in providing for national security and 
foreign policy control of firearms that would transfer to the CCL. 
Since that time, BIS has had considerable time to review the comments 
related to 3D printing of firearms. Although the military usefulness of 
3D printed firearms is not significant, there are other U.S. national 
security and foreign policy interests, as described by commenters, in 
regulating the unlimited

[[Page 4142]]

access to certain files for the 3D printing of firearms that the 
framework of BIS regulations as described in the proposed rule did not 
adequately address. As the State Department noted in the Defense 
Distributed litigation, unrestricted export of such files abroad could 
have a potential detrimental effect on aspects of U.S national security 
and foreign policy, including by undercutting efforts to combat the 
illicit trafficking of firearms or possession of firearms by hostile 
parties or dangerous organizations, as well as other efforts to assist 
other countries in protecting domestic and international security. BIS 
believes this potential detrimental effect on U.S. national security 
and foreign policy warrants the control of the export of certain files 
for the 3D printing of firearms set forth in this rule.
    At the same time, BIS recognizes that there is a longstanding 
tradition to encourage the free exchange of ideas as already 
acknowledged in BIS regulations, such as in 15 CFR 734.7. The agency 
takes seriously its responsibility to regulate judiciously, seeking to 
assert jurisdiction only as needed and consistent with its statutory 
authority. As set forth in the Export Control Reform Act of 2018, 50 
U.S.C. 4801-4852, Commerce's policy is to use export control only to 
the extent necessary to restrict the export of items that would make a 
``significant contribution to the military potential of another country 
. . . which would prove detrimental to the national security of the 
United States'' or ``further significantly the foreign policy of the 
United States or to fulfill its declared international obligations.'' 
50 U.S.C. 4811(1)(A)-(B). Further, Commerce must ensure that its 
controls are ``tailored to focus on those core technologies and other 
items that are capable of being used to pose a serious national 
security threat to the United States.'' 50 U.S.C. 4811(2)(G).
    Because of the national security and foreign policy risks 
associated with the unlimited access and unrestricted production of 3D 
printed firearms, BIS is offering a tailored approach, consistent with 
its statutory obligations, that places restriction on the posting on 
the internet of files for the printing of certain firearms and their 
critical elements. As set forth in Sec.  734.7(c) in this final rule, 
only technology or software for the complete firearm, its frame, or its 
receiver are subject to BIS licensing requirements, aligning BIS 
controls with existing statutory concepts set forth in the definition 
of ``firearm'' under the Gun Control Act (GCA), 18 U.S.C. 921(a)(3). 
Recognizing that libraries and academic institutions within the United 
States may already carry books or other materials related to firearms 
manufacturing, BIS does not seek to regulate this existing landscape of 
activity for the items transferred from the USML to CCL, consistent 
with its treatment of firearms it controlled on the CCL prior to this 
final rule. Instead, since the harm identified with unrestricted 
dissemination has been tied to the easy and untraceable distribution in 
electronic format that the internet provides, BIS has crafted its rule 
to regulate dissemination in this space as it poses a significant risk 
to U.S. national security and foreign policy.
    As a result, Commerce has reached the conclusion that U.S. national 
security and foreign policy necessitate that BIS maintain controls over 
the 3D printing of firearms when such software and technology is posted 
on the internet. The potential for the ease of access to the software 
and technology, undetectable means of production, and potential to 
inflict harm on U.S. persons and allies abroad present a grave concern 
for the United States. Without regulatory oversight, U.S. foreign 
relations and national security interests could be seriously 
compromised. For these reasons, this final rule provides that 
technology and software ready for insertion into an automated 
manufacturing tool that makes use of the software or technology to 
produce a firearm frame, receiver, or complete firearm is subject to 
the EAR, consistent with the regulation of such software and technology 
when previously controlled under the USML.

Vetting Transaction Parties and Monitoring Exports

    Comment 8: Many commenters were concerned about a possible 
reduction in the monitoring of the end users of exported firearms and 
publicly available information about this monitoring. These commenters 
asserted that public reporting of Blue Lantern information is mandatory 
and there are readily available statistics about the results. Some 
commenters requested that if the proposed rules move forward, the BIS 
program be strengthened to address the need to monitor the end users of 
exported firearms.
    BIS response: BIS does not publish end-user monitoring information 
in the same format as the Department of State, but the same type of 
information is available publicly from BIS. The new ECRA maintains an 
annual reporting requirement to Congress that provides an additional 
layer of transparency. Specifically, under Section 1765(a)(6) of ECRA, 
the Secretary of Commerce shall submit a report to Congress that 
includes a summary of export enforcement actions, including of actions 
taken to implement end-use monitoring of dual-use, military, and other 
items subject to the EAR. BIS already has practices in place to 
continuously evaluate its end-use monitoring program and to improve it 
as opportunities to do so are identified. BIS intends to continue those 
efforts for the firearms that are moved to the CCL with this final 
rule.

Registration Requirement for Screening

    Comment 9: Several commenters expressed concerns that BIS will not 
have access to the same databases and background information that the 
Department of State uses to evaluate license applications since the EAR 
does not require registration. These commenters asserted that not 
including a registration requirement will deprive regulators of an 
important source of information and decrease transparency and reporting 
regarding gun exports. Some commenters recommended removing or limiting 
the registration fee for manufacturers but keeping the requirement for 
registration. Another commenter suggested waiving the fee for 
manufacturers who do not, in reality, export these items.
    BIS response: BIS, along with the Department of State, considered 
these concerns and determined that the interagency license review 
process maintains appropriate oversight of the items at issue. BIS's 
export licensing requirements and process are calibrated both to the 
sensitivity of the item and the proposed destination. Additionally, all 
requests for export licenses for firearms remain subject to interagency 
review, including by the Department of State.
    BIS does not need the information included in the ITAR registration 
requirement to regulate those items under the EAR. To apply for a 
license under the EAR, the applicant is required to create a free 
account in BIS's online submission system called SNAP-R. The SNAP-R 
account includes basic information about the exporter. In addition, 
each party identified on the license application is reviewed. The 
requirements to file EEI in AES is another important way that BIS 
obtains information needed to effectively track exports.
    BIS agrees that if there were a registration requirement, removing 
or limiting the fee for registration would ease the burden on small 
businesses and individuals. However, as noted above, BIS does not 
believe that the information included in the registration requirements 
is necessary for BIS to

[[Page 4143]]

effectively license and enforce the EAR. Therefore, registration 
requirements, even if they are free, would impose an unnecessary burden 
on individuals, small companies, and manufacturers.

Brokering

    Comment 10: Many commenters asserted that the proposed changes to 
USML Categories I-III would mean that brokers of semi-automatic weapons 
and related ammunition will be exempt from registration and licensing 
that is currently triggered by their inclusion as defense articles on 
the USML. Other commenters correctly understood that State would 
continue to impose brokering controls for items which moved to the CCL 
that are also listed on the USMIL. One of these commenters asserted 
that they are pleased to see that the State May 24 rule attempts to 
maintain effective oversight of arms brokers by ensuring that brokers 
must register with the Department of State and seek a license. This 
commenter asserted that these provisions are critical in helping 
mitigate illegal arms trafficking to major conflict zones and 
transnational criminal organizations.
    BIS response: BIS clarifies that the Department of State in its May 
24 rule and its final rule retains brokering controls for items which 
are now listed on the CCL that are also listed on USMIL. BIS directs 
the public to review the State final rule for information on the 
brokering controls under the ITAR. The Department of State in its 
companion rule noted it does not intend to impose a double licensing 
requirement for individuals undertaking activities on behalf of another 
to facilitate a transaction that will require licensing by the 
Department of Commerce. In practical terms, this means the vast 
majority of exporters who only export firearms on the CCL directly from 
the U.S. or reexport U.S.-origin firearms on the CCL are not 
``brokers'' and will not have to register with DDTC.

Congressional Oversight

    Comment 11: Multiple commenters expressed concerns that this final 
rule would reduce congressional oversight of arms transfers because BIS 
does not have to notify Congress of firearms sales in excess of $1 
million, as the Department of State does. These commenters asserted 
that: (1) Congress needs to be able to review these types of firearms 
sales to ensure large risky exports do not proceed; (2) Congress has 
played an important role in stopping several risky firearms sales 
because of the congressional notification requirement (commenters 
provided examples of sales from 2017 to Turkey and the Philippines that 
they asserted were blocked by Congress); (3) congressional 
notifications are a valuable tool for the public to be able to see when 
large firearms sales are being proposed; and (4) certain members of 
Congress have asserted their concern that not including a congressional 
notification requirement under the EAR would be counter to 
congressional intent.
    BIS response: The Department of State in its companion rule also 
acknowledges those concerns and notes that those firearms that the U.S. 
Government deemed through the interagency review process to warrant 
continued control under the ITAR as defense articles will remain 
subject to congressional notification requirements in conformity with 
section 36 of the AECA and Executive Order 13637. In this response, BIS 
also puts the congressional notification issue into context under the 
EAR and the statutes that the regulations implement for items ``subject 
to the EAR.''
    BIS notes that at the time of publication of the Commerce May 24 
rule, the Export Administration Act (EAA) did not include a 
congressional notification requirement for firearms, nor did any other 
statute that the EAR implements for firearms. Therefore, BIS did not 
include a congressional notification requirement because it did not 
want to prejudge congressional intent in this area. On August 13, 2018, 
the President signed the National Defense Authorization Act for Fiscal 
Year 2018, which included ECRA. Congress did not include in ECRA any 
requirements for congressional notification for firearms and related 
items exports. Therefore, BIS is not including a congressional 
notification requirement in the final rule.

Overseas Trafficking, Proliferation, and Diversion of Firearms

    Comment 12: Multiple commenters expressed a general concern that 
the transfer to the CCL increases the risk of overseas trafficking, 
proliferation, or diversion. Multiple commenters also expressed 
concerns about the BIS end-use monitoring (EUM) capabilities and the 
impact the companion Department of State rule has on the Department of 
State's EUM programs. Many commenters asserted that the decision to 
relax controls on the export of firearms will make it easier for 
terrorists to obtain the same dangerous firearms that have been used in 
mass shootings in the United States. Many commenters also asserted that 
these firearms are weapons of choice for criminal organizations, 
narcotics traffickers, and gun traffickers, and making it easier for 
them to get firearms will make their activities worse and further fuel 
armed conflict abroad.
    BIS response: This final rule does not deregulate the export of 
firearms. All firearms and major components being transferred to the 
CCL will continue to require a U.S. Government authorization. Further, 
BIS has both a robust EUM program and a law enforcement division 
sufficiently capable of monitoring foreign recipients' compliance with 
their obligations regarding the transfer, use, and protection of items 
on the CCL. Additionally, the Federal Bureau of Investigation and the 
Department of Homeland Security will continue to investigate and 
enforce civil and criminal violations of the export control laws as 
appropriate.
    BIS does not agree that moving these firearms to the CCL will mean 
less oversight to prevent gun trafficking. Exporting these firearms 
will require a U.S. Government authorization. The EAR also includes a 
robust set of end-use and end-user controls that will supplement the 
CCL based license requirements. Similar to the ITAR, BIS will impose 
appropriate conditions as needed on authorizations or not approve 
certain transactions if there is a concern over risk of diversion. BIS 
also will maintain a robust end-use verification program for the 
firearms and other items moved to the CCL from USML Categories I-III. 
In addition, most firearms will require submission of a license, and 
the license review policies would lead to a denial for exports to 
terrorists. The EAR also includes sections in part 744, e.g., Sec.  
744.14 for Foreign Terrorist Organizations (FTO), that impose 
additional restrictive license requirements and license review policies 
for terrorists identified under certain designations on the Department 
of Treasury's Specially Designated Nationals (SDN) list. This is 
significant because it excludes the use of any EAR license exceptions; 
imposes a license requirement for all items subject to the EAR, 
including the firearms being moved to the CCL; and acts as an 
additional safeguard for transactions involving EAR items located 
outside the U.S. that the Department of Treasury controls are not able 
to reach.
    BIS included provisions in the Commerce May 24 rule and in this 
final rule to address this issue by including a presumption of denial 
license review policy under the regional stability reason for control 
for these types of end users. Specifically, in this final rule, the 
license review policy in Sec.  742.6(b)(1)(ii)

[[Page 4144]]

is a policy of denial when there is reason to believe the transaction 
involves criminal organizations, rebel groups, street gangs, or other 
similar groups or individuals, that may be disruptive to regional 
stability, including within individual countries.
    Comment 13: One commenter, a human rights organization, asserted 
that ``it has for many years called attention to the risks associated 
with untrammeled export of small arms and light weapons around the 
world.'' This commenter asserted that ``these arms have been associated 
with the deployment of child soldiers and the rise of insurgent 
groups.'' This commenter also asserted that ``these firearms are easier 
to divert than larger weapons and often end up in the illicit market.''
    BIS response: BIS does not agree that there is anything in the EAR 
that will make the possibility of diversion any greater than it was 
under the ITAR. These concerns of diversion are taken into 
consideration by the export control system and underlie the basis for 
some of the agency's controls. BIS also notes that the U.S. Government 
continuously monitors the export control system to determine where the 
most likely points of diversion are and takes actions to prevent 
potential diversion points by using existing license review policies, 
rescinding or revoking prior authorizations, or imposing new license 
requirements or other prohibitions.

Impact on Foreign Law Enforcement

    Comment 14: One commenter expressed concern that foreign law 
enforcement personnel in particular are at risk of having the firearms 
and ammunition that would be transferred to the CCL used against them. 
Another commenter asserted that moving these firearms to the CCL will 
make it hard for foreign law enforcement to counter gun trafficking.
    BIS response: These assertions are mitigated by the fact that, as 
stated previously: (1) These articles remain subject to BIS's EUM 
programs that vet potential end users of concern, and (2) applications 
for firearms and ammunition licenses will be approved only if the end 
use is permitted under the laws and supervision of the importing 
country.
    BIS notes that this final rule is consistent with U.S. multilateral 
commitments, e.g., to the Wassenaar Arrangement and the United Nations 
for conventional arms reporting. The support documentation requirements 
are consistent with Organization of American States (OAS) requirements 
to require an import certificate issued by the importing country. This 
support document requirement applies to other countries that also 
impose a requirement for an import certificate prior to allowing an 
import of a firearm, permitting these other countries to better control 
the flow of firearms coming into their countries. In addition, U.S. law 
enforcement agencies, including BIS's Office of Export Enforcement, 
also coordinate with law enforcement agencies outside the U.S., as was 
referenced above in the BIS response to Comment 3. The area of 
preventing illegal transshipments is a good example of where various 
countries have worked together, including law enforcement agencies, 
regulators, and policy makers, to come up with standards and protocols 
to reduce illegal transshipments, and this work will continue.

Human Rights Issues

    Comment 15: A number of commenters suggested the proposed rule, if 
made final, may have a negative impact on human rights in foreign 
countries. BIS also received many comments asserting ``it is now 
recognized that rape and sexual assault are systematically used as 
weapons of war in conflicts around the world.'' One of these commenters 
asserted that ``in interviews with women and girls who have survived 
sexual violence during conflict, a very high number of their stories 
include descriptions of the torture they endured at the point of a gun. 
Although the particular models of firearms involved are seldom 
identified, there is no doubt that a military-style weapon contributed 
to gross violations of their human rights.'' Many commenters asserted 
that even after a conflict has officially ended, the weapons left 
behind are used all too often by perpetrators of domestic violence.
    BIS response: BIS will use its resources and expertise in this area 
to vet parties involved in transactions subject to the EAR for human 
rights concerns. Similarly, as part of the aforementioned continuing 
interagency review of export licenses for firearms, the Departments of 
State and Defense will remain active in the interagency review process 
of determining how an item is controlled and will review export license 
applications on a case-by-case basis for national security and foreign 
policy reasons, including the prevention of human rights abuses. As 
stated previously in this final rule and in the companion rule 
published by the Department of State, the Department of State will 
continue vetting potential end users when reviewing Commerce licenses, 
to help prevent human rights abuses.
    BIS does not anticipate authorizing exports of firearms to regions 
involved in active conflicts because of the presumption of denial 
license review policy for regional stability. Commerce on its licenses 
as well as in its license exceptions includes certain requirements and 
conditions to ensure subsequent disposition or use of the item will 
continue to be in accordance with U.S. export control interests. These 
requirements are enhanced by the EAR end-use controls in part 744, 
which in many cases apply to transfers (in-country). Ultimately, the 
issue raised by this commenter is one of the reasons why the license 
review process is done in a careful and deliberative way to ensure as 
much as possible that the items authorized for export will not 
subsequently be used in ways not in accordance with the regulations, as 
well as larger U.S. national security and foreign policy interests.

Effect on Other Countries

    Comment 16: Some commenters asserted moving these firearms to the 
CCL would increase the likelihood for greater destabilization and 
conflict worldwide as well as for these weapons to be trafficked back 
into the U.S. for nefarious uses here. Some commenters asserted that 
``military-style semi-automatic rifles and their ammunition, are 
weapons of choice for criminal organizations in Mexico and other Latin 
American countries that are responsible for most of the increasing and 
record levels of homicides in those countries.'' These commenters 
asserted that this will only send more asylum seekers fleeing to U.S. 
borders.
    BIS response: BIS does not agree that the transfer of items to the 
CCL would increase the likelihood of greater destabilization and 
conflict worldwide, or specifically in Mexico or other Latin American 
countries. As described above, each foreign government decides what 
firearms may be imported into its country. In addition, as noted above, 
these items will be controlled for regional stability, so each license 
application will be reviewed to evaluate whether the export of these 
firearms may contribute to destabilizing that foreign country or other 
regional stability concerns.

U.S. Nationals and Interests Overseas

    Comment 17: Some commenters asserted that this change in licensing 
jurisdiction could lead to an unfortunate future situation where our 
own combat troops face troublemakers armed with American-made weaponry.

[[Page 4145]]

    BIS response: The U.S. export control system, whether that is the 
export controls implemented under the EAR or the ITAR, is focused on 
protecting U.S. national security and foreign policy interests. 
Effective controls are in place under the EAR to ensure as much as 
possible that items subject to EAR do not endanger U.S. troops, U.S. 
nationals, or other U.S. interests is one of the key objectives of EAR 
controls. This final rule is intended to ensure that items being moved 
to the EAR will not endanger U.S. interests. BIS, as well as the 
Department of State, works to ensure that diversions do not occur, but 
it is a concern not unique to firearms moved to the CCL, and something 
the U.S. export control system is designed to counter.

Consistency With U.S. Multilateral Commitments

    Comment 18: Other commenters suggested that this rule contravenes 
international commitments the United States has made through mechanisms 
such as the Wassenaar Arrangement. One commenter asserted that the U.S. 
has already alienated many of our allies, and this rule change will 
further aggravate relations by pushing more firearms into their 
countries.
    BIS response: The transfer of the concerned items to the CCL does 
not contravene U.S. international commitments, as the U.S. Government 
will continue to apply a high level of control to these items and 
require U.S. Government authorization for all exports of firearms and 
major components. Further, the controls being implemented under the EAR 
with this final rule are consistent with U.S. multilateral commitments, 
e.g., to the Wassenaar Arrangement, the United Nations, and the OAS. 
BIS notes that foreign governments decide what items may be imported 
into their countries and how such items will be regulated within that 
country. Regardless of the U.S. export control system, an exporter must 
still meet the requirements of an importing country and if the 
importing country does not allow the importation of these items or 
requires certain requirements to be met, those foreign regulatory or 
other legal parameters set the parameters and scope for what may be 
imported, who may use such items, and for what end uses.

Reporting Requirement for Political Contributions and Fees to the EAR 
To Prevent Corruption in the Arms Trade

    Comment 19: One commenter asserted that the transfer of certain 
Categories I-III items from ITAR to EAR control will mean the loss of 
the reporting requirements outlined in 22 CFR part 130. This commenter 
asserted that part 130 requires exporters to report payment of certain 
political contributions, fees, and commissions related to the sale of 
defense articles and services to the armed forces of a foreign country 
or international organization to the DDTC and because the EAR does not 
have the same type of reporting requirement, this may result in 
increased corruption in arms sales. The same commenter asserted that 
``in many countries around the world, corruption is rampant within 
their arms procurement systems, as foreign officials seek to steal 
funds from their national budgets for their personal gain,'' so not 
including a reporting requirement in the EAR may make the corruption 
worse. The same commenter asserted that under the Commerce May 24 rule, 
BIS would limit its ability to obtain useful information on U.S. 
defense companies and prosecute bribery.
    BIS response: BIS does not agree with these assertions. The Foreign 
Corrupt Practices Act (FCPA) already prohibits this type of corruption 
activity and provides a robust regulatory scheme. FCPA applies to all 
items subject to the EAR, including items that will be moved from the 
USML to the CCL. Therefore, imposing a separate reporting requirement 
is not needed under the EAR to prevent this type of illegal activity. 
BIS highlights here in the preamble of this final rule that any party 
involved in a transaction ``subject to the EAR'' must also follow any 
other applicable U.S. laws, including the FCPA. Questions on the FCPA 
should be directed to the Department of Justice and the U.S. Securities 
and Exchange Commission (SEC).

Commenters Asserting Burdens Will Be Reduced (for Purposes of E.O. 
13771)

    Comment 20: A firearms trade association commenter asserted that 
``it has reviewed the proposed rule thoroughly with its membership . . 
. and most members have told it that the final versions of the rules 
would eventually be beneficial because they would significantly reduce 
the overall burden and cost of complying with controls on the export of 
commercial firearms and ammunition.'' This trade association noted that 
``[a]ll who responded told us that there would be an initial short-term 
increase in burden and cost because of the need to re-classify 
thousands of commodity, software, and technology line items and SKUs 
affected by the new rules, but that the long-term regulatory burden 
reduction would significantly outweigh the short-term need to adjust 
internal compliance programs and practices.'' One firearms industry 
trade association commenter noted that most of ``its members, 
particularly the small- and medium-sized companies, believe that the 
changes will be economically beneficial for them because the eventual 
regulatory simplification and cost reductions will allow them to 
consider exporting when they might not have otherwise.'' Additionally, 
many small independent gunsmiths commented about the disproportionate 
negative impact the costs of ITAR compliance had on their businesses. 
Several commenters asserted that by moving such items to the EAR, many 
domestic manufacturers who do not export would be relieved of the 
significant financial burden of registering under the ITAR. One trade 
association commenter asserted that the costs for their members would 
be reduced because under the Commerce system, there are no fees to 
apply for licenses. This commenter also asserted that their burdens 
would be reduced because the Commerce license application forms are 
vastly simpler compared to the Department of State license application 
forms.
    One commenter asserted that ``one of the benefits under the EAR 
will be that controls on less sensitive and widely available basic 
parts, components, and technology are more tailored and allow for less 
burdensome trade with close allies through license exceptions.'' This 
same commenter also asserted that ``sales with regular customers can be 
combined in to fewer license applications, thus reducing overall 
paperwork to achieve the same policy objectives.''
    One trade association commenter asserted that these changes ``will 
lead to growth for U.S. companies, more jobs in the United States, and 
related economic benefits for the cities and states where the members 
reside while accomplishing the same national security and foreign 
policy objectives they have always had.'' One commenter asserted that 
the items being moved to the CCL are manufactured in many parts of the 
world and that by engaging more with the world, U.S. firearms 
manufacturers will improve their knowledge and capability. One 
commenter that identified himself as a U.K. citizen, who often travels 
to the U.S. and visits sporting goods stores, asserted that the price 
of certain items, e.g., cartridge cases and bullets, are less than half 
the price charged in the U.K. The commenter asserted, ``fix this and 
U.S. manufacturers will see a significant increase in demand from U.K. 
based firearms owners.''

[[Page 4146]]

    BIS response: BIS agrees that the Commerce May 24 rule would reduce 
the overall regulatory burden of complying with U.S. export controls, 
including through regulatory simplification and cost reductions that 
may allow certain persons, e.g., small independent gunsmiths, to 
consider exporting when they might not have otherwise because of the 
economic burden of complying with the ITAR. One of the strengths of the 
EAR control structure is its focused approach on exports without unduly 
burdening persons that are not a party to an export transaction. Not 
requiring domestic manufacturers to register with BIS is a good example 
of the more focused EAR controls. The fact that BIS does not charge a 
registration fee to be able to apply for a Commerce license is another 
financial benefit.
    The EAR is a more tailored control structure, and this more 
flexible control structure will reduce burdens and create more 
opportunities to export. One of the key benefits of the more flexible 
Commerce licensing processes is the ability for applicants to combine 
multiple transactions on license applications for sales to regular 
customers. Because BIS does not require a purchase order, the overall 
number of licenses an exporter may need to submit is reduced.
    The changes included in this final rule may lead to increased sales 
opportunities for U.S. exporters and related economic benefits for the 
United States, while also accomplishing the same national security and 
foreign policy objectives of the U.S. export control system. Because of 
the more flexible EAR control structure, parties outside the U.S. may 
want to purchase more items, such as ECCN 0A501.x parts or components 
that were previously avoided because of no de minimis eligibility under 
the ITAR. This rule might also lead to increased export activity 
because parties outside the U.S. may import more U.S. origin firearms 
because of the more flexible Commerce licenses that do not require a 
purchase order. Importantly, any additional exports that may occur are 
the same types of exports that would have been otherwise approved under 
the ITAR.
    As asserted by some of the commenters, the changes made by this 
final rule may help to foster innovation in the United States by 
encouraging collaboration with companies outside the United States, and 
this may lead to better U.S. products. They may also encourage more 
people to be interested in purchasing items from the United States.

Commenters Asserting Burdens Will Not Be Reduced (for Purposes of E.O. 
13771)

    Comment 21: One anonymous commenter asserted that moving these 
items to the CCL would create a small cost-savings for its company in 
registration and licensing fees, but the commenter did not see a 
demonstrated equivalent in terms of paperwork reduction or real time 
savings. This commenter asserted that the issue for small companies 
having to pay the registration fees due to their manufacturing 
activities is better resolved by changing the definition of 
manufacturer to add a minimum size requirement. The same commenter 
asserted that the EAR does not include a concept of defense services 
and the technology controls are more narrowly focused and apply in 
limited contexts as compared to the ITAR, and this change represents an 
improvement in terms of the commenter's ability to share information 
needed for marketing firearms and for repairing them internationally. 
However, this commenter asserted that the same result could be achieved 
via amendment to the ITAR. The same commenter asserted that ``the 
improvements and savings are quantified using the 43.8 minutes for BIS 
application vs. the 60 minutes for DDTC application and that this 
metric provides no meaningful data from which to extrapolate total 
process savings or if any is really generated.'' This commenter also 
asserted that other additional burdens proposed in the Commerce May 24 
rule also need to be accounted for, e.g., increasing the quantity and 
type of data elements which will be required for AES filing. The same 
commenter asserted that there will be burdens and expenses of 
transition related to reclassification of all products, re-training of 
all employees, and advanced training needed for compliance personnel. 
The commenter acknowledged that it understands this burden is 
considered short term; however, the commenter asserted that the 
benefits of moving these items to the CCL still has not been adequately 
explained to justify these short-term burdens. This same commenter 
asserted that other than utilizing a different application form and the 
change in the agency receiving applications, it has not been 
demonstrated exactly what, if any, process improvement this represents.
    BIS response: While this commenter did not anticipate significant 
cost or burden reduction from the transition to the EAR, most other 
commenters addressing these issues anticipated more significant 
benefits. The reform effort is not intended to make the ITAR the same 
as the EAR; this would not be warranted because the more restrictive 
ITAR controls are needed to regulate items such as fighter aircraft, 
submarines, and intercontinental ballistic missiles. BIS agrees that 
the more focused EAR technology controls will ease burdens, but still 
appropriately control technology for these items.
    BIS does not agree with the assertion that the way the cost savings 
were calculated in the Commerce May 24 rule provided no meaningful data 
to extrapolate total process savings. Many commenters asserted that 
they believed their burden would be reduced by moving these items to 
the CCL. This commenter is correct that other commenters expressed 
concerns about individuals being required to file EEI in AES for 
exports under License Exception BAG of their personally owned firearms, 
and concerns about including the serial number, make, model number, and 
caliber of firearms in the EEI in AES. However, this final rule 
significantly reduces these burdens. For example, this final rule 
requires the U.S. Customs and Border Protection (CBP) Certification of 
Registration Form 4457, a form already being used by exporters. 
Therefore, there will be no additional burden because BIS will be 
requiring information already submitted by exporters to CBP for other 
reasons. For licensed exports, BIS also eliminated the requirement to 
file those additional data elements, except for temporary exports or 
when the Commerce license includes a condition requiring it, similar to 
the approach Department of State takes with provisos on its licenses.
    BIS acknowledges that there will be some short-term adjustment 
costs. BIS also acknowledges that the EAR is a more complex control 
structure because with greater flexibility there is a need for 
additional nuances in the control structure. BIS disagrees that the 
rationale for the transition was not clearly demonstrated in the 
Commerce May 24 rule.
    BIS appreciates this same commenter highlighting a key point of 
commonality. The commenter is correct that the Commerce license 
applications will continue to be reviewed by the Departments of State 
and Defense. This well-established interagency review process specified 
in both Executive Order 12981 and in the EAR helps to protect U.S. 
export control interests and ensures that a diversity of interests and 
agency expertise is being used to review license applications. BIS 
disagrees that the only difference is a different application. For 
example, the fact that

[[Page 4147]]

an applicant does not require a purchase order under the EAR to apply 
for a license allows for more companies to compete for business 
opportunities.

Licensing Costs

    Comment 22: Many commenters asserted that the Commerce May 24 rule 
would transfer the cost of reviewing applications and processing 
licenses from gun manufacturers to taxpayers. Many commenters also 
asserted that with respect to firearms exports, taxpayers and the 
public at large should be concerned about pressures to cut corners that 
could result in authorization of irresponsible transfers of firearms, 
because BIS will not be charging fees for licensing.
    BIS response: By statute, Congress prohibits BIS from imposing fees 
for any license application, authorization or other requests. This 
prohibition applies for submissions in connections with all items 
subject the EAR and is not specific to the firearms industry. BIS has 
effectively licensed items for several decades based on the fee free 
license construct that was included in the Commerce May 24 rule and in 
this final rule.

Comments Specific to the Regulatory Text

Inclusion in the ``600 Series''

    Comment 23: One commenter requested BIS include semi-automatic 
firearms and related items in the ``600 series'' instead of in 0x5zz 
ECCNs.
    BIS response: BIS does not agree. As was stated in the Commerce May 
24 rule and discussed above in response to the comments, the semi-
automatic firearms this final rule adds to ECCN 0A501.a have a 
significant worldwide market in connection with civil and recreational 
activities such as hunting, marksmanship, competitive shooting, and 
other non-military activities. For these reasons, the movement of 
firearms and ammunition from USML Category I and III, similar to the 
civilian spacecraft and related items moved from the USML and 
controlled on the CCL under 0x515 ECCNs, do not warrant being 
controlled under the ``600 series.''

New ECCN 0A501: Firearms and Related Commodities

    Comment 24: One commenter identified an inconsistency between the 
Commerce May 24 rule in the ``Related Controls'' paragraph that stated 
magazines with a ``capacity of 50 rounds or greater'' are ``subject to 
the ITAR.'' However, the proposed USML Category I(h)(1) referenced only 
magazines and drums with a ``capacity greater than 50 rounds.''
    BIS response: This final rule corrects the EAR text to make it 
clear that magazines with a ``capacity of greater than 50 rounds'' are 
subject to the ITAR.
    Comment 25: One commenter asserted there had been past issues of 
interpretation under the ITAR for what was meant by ``complete breech 
mechanism'' and therefore the commenter recommended defining the term 
under the EAR.
    BIS response: BIS accepts the change to include a definition of 
``complete breech mechanisms.'' This final rule will add a definition 
for ``complete breech mechanisms'' to part 772 and will add double 
quotation marks around the term where it is used in ECCNs 0A501 and 
0A502.
    Comment 26: One commenter took issue with the use of the term 
``assault weapons'' or ``close assault weapons.'' This commenter 
asserted that the terms should be defined, or not used. This commenter 
requested the term ``semi-automatic'' rifles, pistols, or other firearm 
be used instead.
    BIS response: BIS agrees and has removed the term ``assault 
weapons'' in this final rule and instead uses the term ``semi-
automatic,'' which better aligns with the terms used in the control 
parameters.
    Comment 27: One commenter recommended BIS define ``firearm'' in 
harmonization with the USML.
    BIS response: BIS does not agree the term ``firearm'' needs to be 
defined in the EAR. The term ``firearms'' is used in this final rule 
with additional technical parameters or ECCN identifiers, e.g., 
0A501.a, that will enable identification of these firearms. BIS does 
not believe the use of the term ``firearms'' will create confusion with 
the USML or the USMIL.
    Comment 28: One commenter noted an inconsistency in the way 
calibers are described in the control lists under the Commerce May 24 
rule. In USML Categories I and II, firearms and guns are described as 
``caliber .50 inclusive (12.7 mm)'' and ``greater than .50 caliber 
(12.7 mm),'' respectively. In new ECCN 0A501, firearms are described in 
``items'' paragraph .a and .b as ``of caliber less than or equal to .50 
inches (12.7 mm)'' and ``with a caliber greater than .50 inches (12.7 
mm) but less than or equal to .72 inches (18.0 mm),'' respectively. 
This commenter asserted that the caliber terms not being aligned 
between the control lists could cause confusion and misinterpretation 
of the controls between the USML and CCL, particularly in regard to the 
ammunition controls which follow the respective firearm controls.
    BIS response: BIS notes that the intent of this final rule is to 
transfer those items previously controlled under Categories I-III that 
no longer warrant ITAR control, to the respective ECCNs as created 
under this rule to the CCL by using long-accepted industry standards of 
``caliber'' as the defining delineation between ammunition types. BIS 
made changes in this final rule to use the appropriate text in this 
final rule to be consistent with the text used in the USML, so that .50 
caliber ammunition and .50 caliber firearms will transition into their 
proper 0x5zz ECCNs. For example ECCN 0A501, includes all non-automatic 
and semi-automatic ``.50 caliber (12.7mm) and less'' firearms under 
``items'' paragraph .a.
    Comment 29: One commenter was concerned that with the proposed 
description of caliber in inches in ECCN 0A501, ammunition for .50 
caliber Browning Machine Guns (``50 BMG'') would be controlled under 
both 0A505 and USML Category III creating overlapping controls.
    BIS response: BIS clarifies in this final rule that ECCN 0A501 
includes all non-automatic and semi-automatic ``equal to .50 caliber 
(12.7mm) and less'' firearms under ``items'' paragraph .a. Therefore, 
this final rule also would not control the 50 BMG under ECCN 0A501.a. 
However, the corresponding ammunition which is used in a number of non-
automatic and semi-automatic firearms will be controlled under 0A505.a, 
when not linked or belted.
    Comment 30: Some commenters requested BIS revise Note 3 to 0A501 so 
that the definition of antique firearms is aligned with the Wassenaar 
Arrangement controls or alternatively that the date threshold in the 
definition of antique firearm in Note 3 be changed from 1890 to 1898 to 
align with the ITAR's exemption.
    BIS response: BIS does not agree. Because this rule focuses on the 
export of firearms, it uses the year 1890 so that the United States 
remains consistent with its international export control commitments 
under the Wassenaar Arrangement, which uses 1890 as the cutoff year to 
identify many firearms and armaments that are not on the control list.
    Comment 31: One commenter requested that BIS clarify where 
combination firearms would be controlled, noting that neither ECCN 
0A501 (firearms) nor ECCN 0A502 (shotguns) refer to firearms that are a 
combination of shotgun and rifle, i.e., that have two barrels.
    BIS response: BIS agrees, and in this final rule adds a note to 
clarify that combination firearms are controlled

[[Page 4148]]

under ECCN 0A501.a. This final rule also adds a note under ECCN 0A502 
to specify that all shotguns and ``shot-pistols'' are controlled 
identically.
    Comment 32: One commenter sought clarification on the 
classification of detachable magazines for ECCN 0A501 firearms with a 
capacity of less than or equal to 16 rounds. The commenter asserted 
that ECCN 0A501.d explicitly lists magazines with a capacity of greater 
than 16 rounds, but it was not clear whether magazines with a lesser 
capacity are designated as EAR99 or controlled under 0A501.x.
    BIS response: BIS agrees, and this final rule adds a new note to 
paragraph .d to clarify that magazines with a capacity of 16 rounds or 
less are classified under ECCN 0A501.x.
    Comment 33: One commenter asserted that as currently proposed, 
paragraph .x would apply to parts and components specially designed for 
a commodity classified anywhere on the USML. This commenter recommended 
revising as follows: ``Parts'' and ``components'' that are ``specially 
designed'' for a commodity classified under paragraphs .a through .c of 
this entry or USML Category I and not elsewhere specified on the USML 
or CCL.
    BIS response: BIS does not agree that a change is needed. Because 
some of the parts and components controlled under ECCN 0A501.x may be 
for firearms incorporated into a fully automatic firearm that is 
incorporated into a military vehicle (a USML Category VII commodity), 
the broader reference to the USML is more appropriate. The USML Order 
of Review and CCL Order of Review will ensure that only those parts and 
components intended to be classified under ECCN 0A501.x will be 
classified under this ``items'' paragraph.
    Comment 34: One commenter requested revising paragraph 0A501.y by 
replacing the period at the end of the paragraph with the phrase 
``including'' or ``as follows:'' In order to clarify whether .y is 
limited to the enumerated .y paragraphs, or itself is a control 
paragraph in which items can be controlled.
    BIS response: BIS clarifies that the .y listings are exhaustive, 
and to be classified in a .y paragraph, the item needs to meet the 
identified description and the definition of ``specially designed.''
    Comment 35: One commenter requested clarification of whether the .y 
paragraph itself serves as a catch-all for ``parts,'' ``components,'' 
``accessories,'' and ``attachments.'' For example, a set of fiber-optic 
sights for a pistol are not ``iron sights'' as listed in .y.3, but may 
be a ``specially designed'' ``attachment.''
    BIS response: BIS agrees that the introductory text of ECCN 0A501.y 
needs to be revised to clarify that the ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' ``specially designed'' therefor 
for the .y items are also controlled in the .y paragraphs. This final 
rule makes this change. BIS had previously made this same correction to 
the other .y paragraphs on the CCL to ensure, for example, that 
``specially designed'' parts used in ``specially designed'' galleys 
classified under ECCN 9A610.y for military aircraft, would not be 
controlled in 9A610.x.
    Comment 36: One commenter asserted that ECCN 0A501.y contains three 
types of commodities that have been officially determined to be EAR99 
for many years: (i) .y.2--scope mounts and accessory rails; (ii) .y.3--
iron sights; and (iii) .y.4--sling swivels. This commenter requested 
that the parts in .y paragraphs .y.2, .y.3, and .y.4 be removed from 
ECCN 0A501 and a note be added to confirm that they remain EAR99 items.
    BIS response: BIS does not accept this change because it only works 
if the past CJs covered those items and all variants. Paragraph (b)(1) 
of ``specially designed'' and General Order No. 5 would not be 
applicable to those items not included within the scope of a CJ--
meaning an item may get pulled up into .x. Therefore, to address this 
issue definitively this final rule keeps these items as .y items.

License Exception LVS

    Comment 37: BIS received a number of comments on License Exception 
LVS eligibility. Some commenters supported its availability, though one 
commenter suggested that wholesale value rather than actual value 
should be used while another commenter requested higher value shipments 
should be authorized to Canada. One commenter recommended pegging the 
LVS dollar value to inflation to allow for incremental increases to 
match price increases over time. One commenter requested that Canada 
should have all of its LVS eligibility specified in its own LVS 
paragraph in the ECCN, distinguishing Canada's eligibility from other 
Country Group B countries. Some commenters raised concerns related to 
License Exception LVS availability, asserting that it would not curb 
risky exports of pistol grips and magazine clips valued at $500, that 
it is possible for companies or individuals to export many low-value 
items in one shipment without a U.S. license, and that it could fuel 
gun violence in Mexico and Central America. One commenter requested 
reducing the LVS eligibility under ECCN 0A501 from $500 to $100, and 
reducing further the commodities that would be eligible.
    BIS response: BIS agrees that License Exception LVS will be 
particularly useful for the firearms industry for low value shipments 
and believes that the license exception is properly scoped in the 
dollar value used and the scope of availability for the reasons 
outlined in the Commerce May 24 rule. BIS emphasizes as specified in 
the name of the license exception itself, this license exception is 
limited to low value shipments. This includes the total quantity for 
consolidated shipments, even if a shipper was consolidating several 
shipments. BIS also notes that an exporter is limited to twelve orders 
per year to the same consignee. The terms of License Exception LVS also 
strictly prohibit the splitting of orders to try to evade the 
applicable LVS dollar value. In addition, if there are questions 
whether an exporter has stayed within the required scope of LVS, EE can 
require exporters to hand over all the required recordkeeping documents 
related to a transaction under License Exception LVS to identify 
whether there has been a violation of the EAR. LVS is not currently 
linked to inflation, but the public may at any time make 
recommendations for changes to the regulations, including suggestions 
for revising the LVS dollar values in an ECCN.
    BIS notes that only countries identified in Country Group B are 
eligible to receive commodities under License Exception LVS. These are 
countries that the U.S. Government does not have export control 
concerns with for purposes of the commodities that are eligible to be 
authorized under License Exception LVS. More sensitive commodities, 
such as firearms and some key components, are excluded from License 
Exception LVS. As noted in the Commerce May 24 rule, the ITAR has a 
similar type of exemption. Relatedly, BIS does not believe Canada-
specific provisions are necessary in the License Exception LVS 
paragraph of ECCN 0A501 to specify all LVS eligibility for Canada in 
one stand-alone paragraph. First, it would deviate from how LVS is 
described in other ECCNs. Second, there is the potential that an 
exporter may get confused and believe LVS is available for other 
Country Group B countries because the same commodities were identified 
in more than one LVS paragraph.
    Finally, it is important to note that the importing country will 
also have its own requirements for imports and

[[Page 4149]]

domestic sale and use, including for commodities such as pistol grips. 
While someone like a jeweler or other craftsman in the U.S. (e.g., a 
hobbyist who enjoys engraving pistol grips with western cowboy motifs) 
could use License Exception LVS, it would not be available for larger 
transactions, such as someone wanting to export to a retail store in a 
foreign country.

New ECCN 0A502: Shotguns and Certain Related Commodities

    Comment 38: One commenter requested revising the heading of ECCN 
0A502 to specify the parts and components enumerated in the heading are 
shotgun parts and components.
    BIS response: BIS agrees, and this final rule revises the heading 
to specify that parts and components enumerated in the heading of ECCN 
0A502 are shotgun ``parts'' and ``components.'' BIS also makes one 
other change to address the issue of clarity raised by this commenter. 
This final rule adds a note to ECCN 0A501 to specify that ``shot-
pistols'' will be controlled as shotguns.
    Comment 39: One commenter requested that rather than having the 
items controlled contained in the ECCN heading, BIS should enumerate 
the shotguns in separate ``items'' paragraphs that track with the 
different reasons for control for the different size shotguns in the 
``items'' paragraph to ease the compliance burden for exporting these 
shotguns.
    BIS response: BIS does not agree. The license requirement section 
in this final rule is already consistent with the current control text, 
applying CC Column 2 and CC Column 3 as appropriate depending on the 
destination. BIS already uses this structure for long barreled 
shotguns, which this final rule moves to ECCN 0A502.
    Comment 40: One commenter requested that the final rule define 
antique shotguns in ECCN 0A502 to capture those guns made ``in or 
before 1898,'' consistent with the definition of antique rifles and 
handguns in the Gun Control Act of 1968.
    BIS response: BIS agrees, and this final rule adds a new Note 1 to 
0A502 specifying that shotguns made in or before 1898 are considered 
antique shotguns and designated as EAR99.
    Comment 41: One commenter requested BIS clarify the control status 
of accessories of optics, e.g., sunshades or other anti[hyphen]glare 
devices.
    BIS response: BIS clarifies that sunshades or other anti-glare 
devices if not enumerated or otherwise described in ECCN 0A502 or any 
other ECCN are designated as EAR99.
    Comment 42: One commenter requested that the description in the 
``Related Controls'' paragraph of ECCN 0A502 be made consistent with 
how such shotguns are referred to in the revised USML Category I.
    BIS response: BIS agrees, and this final rule removes the phrase 
``combat shotguns'' wherever it appears in ECCN 0A502, including in the 
``Related Controls'' paragraph. BIS in this final rule also removes 
references to ``combat shotguns'' in ECCN 0A505.
    Comment 43: One commenter requested in order to have consistent 
controls and exceptions for similar commodities, that BIS allow the use 
of License Exception LVS for ECCN 0A502 parts and components to the 
same extent proposed for 0A501, e.g., for shotgun trigger mechanisms, 
magazines, and magazine extensions.
    BIS response: BIS agrees, and in this final rule revises the LVS 
paragraph in the License Exceptions section of ECCN 0A502 to add LVS 
eligibility of $500 for the same types of parts and components for ECCN 
0A502 shotguns that are available for LVS under 0A501. Complete 
shotguns will continue to be excluded.
    Comment 44: One commenter asserted that to facilitate the use of 
License Exception LVS, the ECCN 0A502 heading should be changed to 
``Shotguns and related commodities (See List of Items controlled) . . 
.'' and then under the ``List of Items Controlled'' parts and 
components should be enumerated to include ``complete trigger 
mechanisms,'' ``magazines,'' and ``magazine extension tubes.''
    BIS response: BIS does not agree. BIS in this final rule continues 
to enumerate ``parts'' and ``components'' in the heading, but in the 
interest of clarity it also includes the specific eligible commodities 
in the LVS paragraph.

New ECCN 0A504: Optical Sighting Devices and Certain Related 
Commodities

    Comment 45: One commenter asserted that the proposed Note 1 to 
0A504.f states that ``0A504.f does not control laser boresighting 
devices that must be placed in the bore or chamber to provide a 
reference for aligning the firearms sights.'' This commenter asserted 
there are a variety of boresighting devices that are placed over the 
muzzle of the barrel instead of inside the bore or chamber and perform 
the same function as those described in the note. For these reasons, 
the commenter requested that this Note be revised to read as follows: 
``0A504.f does not control laser boresighting devices that provide a 
reference for aligning the firearms sights. This includes any laser 
boresighting device, regardless of how it attaches to the firearm 
(e.g., boresights that fit over the muzzle of the barrel), which 
performs the same function.''
    BIS response: BIS does not agree. Revising Note 1 to 0A504.f would 
make it difficult to distinguish between what the commenter is 
proposing and a laser pointer. The note included in this final rule 
makes it clear that those commodities that are placed inside a bore or 
chamber would preclude its subsequent use as or with a firearm.
    Comment 46: One commenter requested License Exception LVS should be 
made available for ECCN 0A504.g commodities that are similarly 
insignificant as those commodities eligible in ECCN 0A501.
    BIS response: BIS agrees, and this final rule includes License 
Exception LVS eligibility for ``parts'' and ``components'' classified 
under ECCN 0A504.g.

New ECCN 0A505: Ammunition and Certain Related Commodities

    Comment 47: One commenter recommended revising ECCN 0A505.a to 
include ammunition for firearms controlled in USML Category I that may 
not otherwise be captured by adding the phrase ``or USML Category I'' 
to clarify that ammunition for these type of firearms is also 
controlled under ECCN 0A505.a.
    BIS response: BIS agrees, and this final rule incorporates the 
suggested text to clarify that ammunition for firearms in both ECCN 
0A501 and USML Category I will be controlled under 0A505.a, provided it 
is not enumerated elsewhere in 0A505 or in USML Category III.
    Comment 48: One commenter requested BIS revise ECCN 0A505 to 
include a note similar to the Note to 0A018.b to specify that dummy 
ammunition is designated EAR99.
    BIS response: BIS agrees, and this final rule adds a Note 4 to 
0A505 to specify that all dummy and blank (unless linked or belted) 
ammunition, not incorporating a lethal or non-lethal projectile(s) is 
designated EAR99.
    Comment 49: One commenter asserted that there are several magazine 
manufacturers in the U.S. producing magazines of greater than 50 rounds 
that would benefit from also having their magazine moved to the CCL. 
This commenter asserted that limiting this magazine capacity to 50 
rounds or less does not protect any special U.S. or allied military 
advantage, but magazines

[[Page 4150]]

of greater than 50 rounds are commonly found and manufactured 
worldwide.
    BIS response: BIS does not agree. Magazines with a capacity of 50 
rounds or less are appropriate on the CCL, and magazines greater than 
50 rounds warrant ITAR control.
    Comment 50: One trade association commenter noted that proposed 
ECCN 0A505 included an allowance for License Exception LVS of $100 for 
0A505.x ``parts'' and ``components,'' but that firearm parts and 
components under 0A501 have an LVS allowance of $500. This commenter 
asserted that its members feel this is an inconsistency in the 
treatment of related commodities. The commenter asserted that in recent 
years, costs related to ammunition components have been increasing, 
with the largest increases affecting larger caliber cartridges. This 
commenter asserted that the ``$100 limit on LVS will be quickly met 
with small amounts of components, making this exception not as useful 
as intended.'' Another commenter asserted that the ITAR allows for $500 
per shipment, so $100 net under EAR would be more restrictive than ITAR 
exemption.
    BIS response: While the ITAR does not have an exemption for exports 
of ammunition parts and components, BIS agrees, and this final rule 
raises the LVS dollar value from $100 to $500 for ECCN 0A505.

New ECCN 0A602: Guns and Armament

    Comment 51: One commenter suggested revising ECCN 0A606 to clearly 
identify engines for self-propelled guns and howitzers as controlled 
therein rather than in 0A602.
    BIS response: BIS notes that the USML Order of Review and CCL Order 
of Review would likely already address this. However, this final rule 
adds a Related Controls paragraph (3) and a new note to ECCN 0A602.x to 
clarify the appropriate classification, but it does not add such a note 
to ECCN 0A606.

New ECCN 0B501: Test, Inspection and Production Equipment for Firearms

    Comment 52: One commenter requested guidance on what is the 
definition of production equipment under ECCN 0B501.e. This commenter 
asserted that it has ``many hobbyist customers who would not qualify as 
a gunsmith let alone as a manufacturer and tools and equipment designed 
for hobbyists are quite different than manufacturing equipment . . . 
yet we have a concern these tools will be included in 0B501.e because 
even the hobbyist is `producing' a firearms part.''
    BIS response: The term ``production'' is a defined term in part 
772. ``Production'' means all production stages, such as: Product 
engineering, manufacture, integration, assembly (mounting), inspection, 
testing, and quality assurance. Part 772 also includes a definition of 
``production equipment'' that includes tooling, templates, jigs, 
mandrels, moulds, dies, fixtures, alignment mechanisms, test equipment, 
other machinery and components therefor, limited to those specially 
designed or modified for ``development'' or for one or more phases of 
``production.'' The definition of ``production equipment'' in part 772 
applies only in the Missile Technology Control Regime context, but for 
purposes of this comment, the definition of ``production'' and the 
definition of ``production equipment'' provides the needed guidance. 
BIS also emphasizes that the person using the production equipment does 
not change the classification of the production equipment. Importantly, 
domestic use--that is use of production equipment in the United 
States--does not implicate export controls.
    Comment 53: One commenter requested BIS ensure there were no gaps 
for the production equipment controls on the CCL for USML Category I 
items as well as Category III items.
    BIS response: BIS agrees. To ensure there are no gaps in production 
equipment for USML Category I, this final rule expands ECCN 0B501.e to 
include all production equipment ``specially designed'' for USML 
Category I items. It also expands ECCN 0B505.a to include all 
production equipment ``specially designed'' for USML Category III 
items.

New ECCN 0B602: Test, Inspection and Production Equipment for Certain 
Guns and Armament

    Comment 54: One commenter requested adding examples of specific 
tooling that would be controlled under ECCN 0B602, such as a note 
including ECCN 0B602 boresights and units made specifically for testing 
purposes.
    BIS response: BIS does not agree to this addition. As described 
above, part 772 defines ``production'' and ``production equipment,'' so 
these existing definitions already address this comment.

New ECCN 0E501: Technology for Firearms and Certain Related Items

    Comment 55: One commenter requested BIS clarify how ``technology'' 
is defined for 0E501 and whether shooting chronographs or empty brass 
cartridge annealing machines are included in the definition of 
``technology.''
    BIS response: BIS clarifies that the definition of ``technology'' 
in part 772 applies to ECCN 0E501 and any other Product Group E ECCNs 
on the CCL, including the other Product Group E ECCNs this final rule 
adds, e.g., 0E505. In addition, BIS clarifies that shooting 
chronographs or empty brass cartridge annealing machines are end items 
and generally designated EAR99. Therefore, the examples given fall 
outside the Commerce definition of ``technology.''
    Comment 56: BIS received a number of comments on the concept of 
``defense services,'' including concerns about the lack of defense 
services controls under the EAR, the potential loss of U.S. Government 
oversight on many types of defense services, and concerns about 
firearms training being provided to foreign security forces without 
U.S. Government approval. There were also concerns raised about the 
ability of U.S. companies to provide a wide range of assistance and 
training to foreign persons without sufficient U.S. oversight and a 
suggestion that the definition of ``technology'' be expanded to capture 
these defense-service type activities, such as private security 
contractor training of foreign police with firearms. One commenter 
asserted that ``the proposed rule could also create an unfortunate 
scenario where U.S. private security contractors are able to provide 
services to foreign security units or militias that are otherwise 
prohibited from receiving training through U.S. foreign security aid.''
    BIS response: BIS clarifies that defense services is specific to 
the ITAR, but the EAR maintains controls related to exports, reexports, 
and in-country transfers of commodities, software, and technology in a 
number of ways. For example, a U.S. person is prohibited from engaging 
in exports, reexports, or in-country transfers related to certain end 
uses (as specified in Sec.  744.6) or a ``knowing'' violation (as 
specified in Sec. Sec.  764.2(e) and 736.2(b)(10)). In addition, as 
part of providing a service, a person must determine whether there will 
be an export, reexport, or in-country transfer of any commodities, 
software, or technology requiring an EAR authorization. Accordingly, 
although the EAR generally does not control services directly, the EAR 
is still highly effective at protecting U.S. export control interests 
implicated by the supply of services in connection with exports, 
reexports, or in-country transfers. The effectiveness comes by 
controlling the technology--e.g., ``technology'' for how to produce a 
firearm. The release of technology is the key nexus where providing a 
service crosses over into a transaction that is

[[Page 4151]]

subject to the EAR and that merits control. In most cases, the analysis 
will focus on whether any technology that is subject to the EAR will be 
released as part of providing the service. The release of technology 
moved from USML Categories I-III will require a U.S. Government 
authorization, except for 0E602 technology being exported to Canada 
which may be exported No Licensed Required (``NLR'').
    For example, providing design and development assistance, testing, 
and production assistance on firearms and ammunition to foreign persons 
would be a release of ``technology'' subject to the EAR and require an 
EAR authorization, unless the information being released fully met the 
criteria in part 734 for exclusion from the EAR. The EAR requirements 
would apply if the technology was being exported. The EAR requirements 
would also apply if the technology was being released in the United 
States to a foreign national as a deemed export, including technology 
released through training.
    BIS cautions against assuming that no U.S. Government authorization 
is required to provide training to foreign security forces. Providing 
military training of foreign units and forces would still be a defense 
service regulated by the ITAR. Questions on whether a specific service 
may be a defense service should be directed to the Department of State. 
For purposes of the EAR, as described above, the question centers on 
whether any items that are subject to the EAR are provided as part of 
that service, and if such items are related to firearms, then U.S. 
Government authorization will be required.
    BIS notes that if an item, such as the firearms moved to the CCL in 
this final rule, is being exported under the Foreign Military Sales 
(FMS) program, those items are not ``subject to the EAR''--meaning the 
EAR would not apply and for purposes of the AECA those items being 
exported under an FMS letter of offer and acceptance are defense 
articles subject to State Department controls under 22 U.S.C. 2794(3) 
for the specific transaction. BIS also notes that for non-FMS U.S. 
foreign security aid, the granting U.S. organization can include 
provisos as needed as part of the aid agreement that imposes any 
necessary restrictions the aid granting U.S. agency believes is 
warranted. In addition, BIS through the licensing process can impose 
conditions as warranted on licenses to ensure consistency with other 
requirements as needed. As noted above, the Department of State is a 
licensing review agency for Commerce licenses and can advise on 
Commerce export licenses as warranted if additional conditions may be 
needed in furtherance of a direct commercial sale as part of U.S. 
foreign security aid.
    Comment 57: One commenter asserted that because of the narrowness 
of the definition of ``required,'' it ``means companies may be able to 
provide a wide range of training activities, design and development 
assistance, testing, and production assistance on firearms and 
ammunition to foreign persons without sufficient scrutiny and 
oversight.''
    BIS response: BIS does not agree. The term ``required'' is an EAR 
defined term and is a well understood concept used on the control lists 
of the multilateral export control regimes. The EAR has effectively 
controlled ``technology'' for various other sensitive and sometimes 
lethal items using the existing definition and concept of ``required.''
    Comment 58: One commenter asserted that ``in 2016, U.S. 
registration for firearms manufacturing activities was deemed so 
important that DDTC issued specific guidance providing that a broad 
range of activities (e.g., use of any special tooling or equipment 
upgrading in order to improve the capability of assembled or repaired 
firearms, and rechambering firearms through machining, cutting, or 
drilling) constitute ``manufacturing'' and required registration.'' 
This commenter asserted it was concerned because this 2016 guidance 
will not apply to Category I-III items moving to the CCL.
    BIS response: BIS clarifies that individuals have been able to 
lawfully make their own firearms in the United States, but not for 
reselling. ATF licenses domestic manufacturers. The types of 
gunsmithing services described by this commenter are not considered 
``production'' under the EAR.

Revision to ECCN 0A018

    Comment 59: Some commenters requested removing ECCN 0A018 and 
transferring those commodities to 0A505, so all commercial firearms, 
ammunition, and related items could be in one of the series of new 
0x5zz ECCNs and not be left behind in legacy xY018 entries. The 
commenter suggested that once the items in the proposed ECCN 0A018.b 
are moved to 0A505, and controlled in the same manner, then 0A018 could 
be removed. Another commenter requested the commodities classified in 
ECCN 0A018.b for ``specially designed'' components should be controlled 
under 0A505.x. The commenter also requested that the decontrol note in 
ECCNs 0A018.b be transferred to 0A505 so that the current EAR99 status 
of such items is maintained.
    BIS response: BIS agrees with these requested changes. This final 
rule removes the items controlled under ECCN 0A018 and adds these 
commodities to 0A505 but retains the heading of ECCN 0A018 and adds a 
cross reference to ECCN 0A505. This final rule removes the commodities 
controlled under ECCN 0A018, because this final rule controls these 
commodities under 0A505.d or .x. As conforming changes, this final rule 
removes ECCN 0E018, because 0E505 is broad enough to control this 
technology and revises the heading of ECCN 0A988 to remove an outdated 
reference to ECCN 0A018.d.1. ECCN 0A018.d paragraph is reserved in 
0A018, so this reference in 0A988 should have been updated in an 
earlier rule.
    BIS clarifies that the control parameters of ECCN 0A505.x in this 
final rule are broad enough to control commodities classified in ECCN 
0A018.b for ``specially designed'' components controlled under 0A505.x. 
without further revisions. This final rule adds a Note 4 to ECCN 0A505 
to address the commenters' request related to the decontrol note in 
0A018.

Conforming Change to General Order No. 5

    Comment 60: One commenter requested that licenses already granted 
under the ITAR should be grandfathered for all outstanding 
transactions.
    BIS response: BIS clarifies here that this was already addressed 
with the revisions proposed in the Commerce May 24 rule for General 
Order No. 5, which adds 0x5zz ECCNs to General Order No. 5 and will be 
adopted in this final rule. The current General Order No. 5 includes 
grandfathering provisions and allows for applying for Commerce licenses 
once a final rule is published, but not yet effective.

Revisions to Regional Stability Licensing Policy for Firearms and 
Ammunition

    Comment 61: Several commenters raised concerns that laws against 
the provision of arms where certain human rights abuses are of concern 
may not apply to the 0x5zz ECCNs and that the role of the Bureau of 
Democracy, Human Rights, and Labor (DRL) at the Department of State 
would be diminished. One commenter asserted that the Department of 
State would no longer have a statutory basis for vetoing a proposed 
sale on human rights grounds for firearms, guns, ammunition, and 
related parts that move to the CCL.
    BIS response: As described above, BIS disagrees with the assertion 
that there

[[Page 4152]]

will be less focus on protecting human rights under the EAR. This final 
rule will control these items for Regional Stability and the license 
review policy specifies that human rights concerns are considered as 
part of the license review process. As referenced above, the Department 
of State is a license review agency for Commerce licenses, and the 
existing E.O. 12981 and EAR provide that other license review agencies 
have 30 days for review of Commerce license applications. E.O. 12981 
does not specify what parts of those other agencies must review a 
Commerce license application, but the Department of State has 
discretion to ensure that DRL receives and reviews Commerce licenses.
    This final rule includes a license review policy for regional 
stability to indicate license applications will also take into 
consideration human rights concerns, which can be a basis for denial. 
BIS also notes that there is a presumption of denial policy for license 
applications involving narcotics traffickers, criminal organizations, 
and terrorists because of their frequent involvement in human rights 
abuses, as well as other regional stability concerns.

Crime Control and Detection License Review Policy

    The Commerce May 24 rule did not propose changes to the crime 
control and detection license review policy in part 742, but commenters 
made recommendations in this area that are described and responded to 
below.
    Comment 62: One commenter recommended that ``in order to bring the 
proposed regulations into alignment with provisions of the Foreign 
Assistance Act [22 U.S.C. 2304(a)(2), which makes explicit reference to 
crime control equipment under the aegis of the (expired) Export 
Administration Act], ECCN 0A501.a should be controlled for crime 
control.''
    One commenter requested that BIS provide the police profession a 
greater, better-defined role in the evaluation of firearm export 
license applications and possibly form a technical advisory committee 
(TAC). Another commenter requested that licensing officials should 
consider the effect of proposed exports on local communities, public 
safety, peace officer safety, crime control, and control of civil 
disturbances to assure that the rule of law is not impaired by firearm 
exports.
    One commenter asserted that highly destructive weapons should not 
be exported to civilians. This commenter recommended ``a maximum limit 
on firepower exported to civilians. Firearms with a muzzle energy 
higher than 5,000 Joules should be barred from export to non-government 
end-users.''
    BIS response: BIS notes that the NS 1 and FC 1 license requirement 
included in this final rule for ECCN 0A501.a, as well as ECCN 0A501.b, 
will ensure U.S. multilateral commitments are met. In addition, the RS 
1 license requirement and license review policies is revised in this 
final rule to further address the types of human rights concerns, as 
well as imposing a presumption of denial license review policies for 
certain types of end users of concern, such as narcotics traffickers, 
will ensure U.S. export control interests are protected and that 
exports are not approved that would otherwise not be consistent with 
the Foreign Assistance Act. As was discussed above, the U.S. Government 
agency granting aid to a foreign country will also have the ability to 
impose certain provisos as part of that foreign assistance agreement, 
and all exports made under the FMS programs are authorized by the 
Department of State. As warranted, there is nothing that will preclude 
BIS from consulting with other agencies of the U.S. Government 
regarding a particular license application.
    BIS agrees that getting regular input from the police profession 
and those with expertise from the private sector will be beneficial but 
notes that this can be accomplished through BIS's existing TACs rather 
than through the creation of a new TAC. BIS notes that agency rules are 
regularly reviewed by BIS's EE as well as other agencies with law 
enforcement components.
    BIS does not agree that an outright prohibition is needed to 
protect U.S. national security and foreign policy interests under the 
EAR. Imposing such a worldwide prohibition would be more restrictive 
than how these firearms were regulated under the ITAR and would impose 
significant burdens on the U.S. firearms industry that may result in 
significant U.S. job losses in the firearms and related industries. BIS 
appreciates the time and thought that went into the detailed suggested 
change, but an outright prohibition was not contemplated in the 
Commerce May 24 rule, would arbitrarily single out one industry for 
more restrictive control and is not needed to protect U.S. export 
control interests, as those interests can be served through the 
regulatory regime set forth in the EAR.

License Exception TMP

    Comment 63: One commenter requested increasing the number of items 
allowed for temporary export under Sec.  740.9(a)(5) to 100 per 
shipment to more closely align with commercial expectations and 
practices. Another commenter asserted that larger film productions such 
as war movies, will oftentimes require well beyond 75 firearms.
    BIS response: BIS does not agree with expanding Sec.  740.9(a)(5) 
of TMP to allow for 100 firearms per shipment or to address a 
particular type of export. The exhibition and demonstration 
authorization under paragraph (a)(5) of License Exception TMP is 
intended to provide for a sufficient quantity of firearms, and if an 
exporter needs a larger quantity, e.g., 100 or even 1,000 firearms for 
exhibition or demonstration, that the exporter may apply for a license 
to authorize the export. BIS maintains the status quo for how large 
temporary shipments of firearms are handled under the ITAR, which is 
through a licensing process that allows BIS to include any additional 
conditions to ensure the export will not be diverted.
    Comment 64: BIS received comments requesting modifications to 
License Exception TMP, including to allow for the use of License 
Exception TMP (Sec.  740.9) under paragraph (a)(10) to transfer 
firearms to affiliates, such as a foreign parent or subsidiary; to 
allow TMP paragraph (b)(1) to be used to authorize temporary import and 
subsequent export of items moving in transit through the United States; 
and to allow for temporary importation for a period of one year. BIS 
also received a comment requesting extensions of temporary imports 
imported under paragraph (b)(5) to not be more restrictive than the 
ITAR.
    BIS response: BIS does not accept these changes. Under this final 
rule, an exporter may apply for a license to authorize these same types 
of exports of firearms to affiliates. In addition, BIS notes that 
License Exception STA is available for parts and components, e.g., 
those that this rule will control under ECCN 0A501.x, when the export, 
reexport, or transfer (in-country) is to a Country Group A:5 country, 
including affiliates. License Exception STA is more restrictive than 
paragraph (a)(10) of License Exception TMP, but because of the 
sensitivity of the items involved it is not appropriate to allow for 
the paragraph (a)(10) authorization to be available. As for firearms 
transshipped through the United States, Sec.  740.9 (b)(3), (4), and 
(5) will be available to authorize the export and will be sufficient to 
address concerns about such authorizations.
    BIS does not accept the suggested change to the time limitation in 
Sec.  740.9(b)(5) to lengthen it from one year (as included in the 
Commerce May 24

[[Page 4153]]

rule) to four years because one year will be sufficient for these types 
of temporary end uses in the U.S. For the same reason, BIS also does 
not accept the suggestion to allow for extensions of temporary imports 
made under paragraph (b)(5) as suggested by one commenter.
    Comment 65: One commenter noted that the proposed additions to 
Sec.  740.9 included an instruction directing temporary importers and 
exporters to contact CBP at the port of temporary import or export, or 
at the CBP website, for the proper procedures to provide any data or 
documentation required by BIS. The commenter suggested that BIS and CBP 
coordinate to create standardized instructions for all ports that can 
be made available online, so that each shipment does not have to be 
specially coordinated.
    BIS response: BIS agrees and will take steps, in coordination with 
CBP, to create standardized instructions for all ports that can be 
posted online prior to the effective date of this final rule.
    Comment 66: One trade association commenter asserted that ``new 
paragraph (b)(5) in License Exception TMP and the related provisions in 
Sec.  758.10 that detail the process for temporary import and 
subsequent export of these items is fair and reasonable.'' This 
commenter asserted ``it is common practice to cite the regulatory 
exception for the temporarily imported commodities at the time of 
import, then reference the import documents at time of return export of 
the goods'' and does not believe the process in the Commerce May 24 
rule will cause any additional burden to exporters.
    BIS response: BIS agrees and adopts these provisions in this final 
rule as proposed.
    Comment 67: One commenter requests License Exception TMP be 
expanded beyond paragraphs (a)(5) and (6) to also allow for use in film 
production for subsequent permanent return to the United States. 
Alternatively, one commenter requests that BIS should consider a 
procedure or license, similar to a DSP-73, to allow for the temporary 
export and re-importation of firearms. Another commenter asserted that 
BIS should provide additional guidance on the return of temporary 
exports under the new paragraph (b)(5) under License Exception TMP.
    BIS response: BIS confirms that License Exception TMP under 
paragraphs (a)(5) and (6) will not be available in that type of a fact 
pattern, but a Commerce license could be applied for to authorize these 
types of exports. As noted above, Commerce licenses are flexible enough 
to authorize temporary exports that are not otherwise eligible for 
License Exception TMP. The importation into the United States after 
temporary export will not require a separate EAR authorization. BIS 
agrees providing guidance for the import of items temporarily exported 
will be helpful and clarifies that the import of items temporarily 
exported does not require an EAR authorization for import.

License Exception GOV

    Comment 68: One commenter asserted that the phrase ``or other 
sensitive end-users'' is unclear and recommended deleting the phrase or 
enumerating the specific types of ineligible entities.
    BIS response: BIS includes a parenthetical phrase in the final rule 
under the new Note 2 to paragraph (b)(2) to include illustrative 
examples of other sensitive end-users. This final rule adds the 
parenthetical phrase ``(e.g., contractors or other governmental parties 
performing functions on behalf of military, police, or intelligence 
entities)'' after the phrase ``or other sensitive end-users'' to 
provide greater clarity on the other end-users that are excluded.

License Exception BAG

    Comment 69: Several commenters expressed opposition to the 
requirement for individuals to have to file in AES for personally owned 
firearms and ammunition exported under License Exception BAG, that was 
included in the Commerce May 24 rule. The commenters expressed concerns 
that requiring individuals to file in AES is problematic and unduly 
burdensome; that there is not a genuine need for this information and 
would violate the spirit of congressional prohibitions against Federal 
firearm registries; and that Department of State and CBP already tried 
requiring AES filing for individuals under the ITAR and it was not 
workable. Commenters identified a number of issues with the AES filing 
system for individuals, including the cost to create accounts, the 
compatibility of the hardware and software, concerns that IRS and 
Census requirements are in conflict, and the mismatch of required 
information for individuals with the fields that are currently in AES 
that are oriented to commercial exports.
    For these reasons described above, several commenters requested use 
of CBP Form 4457 as the permanent solution. Some commenters asserted 
that CBP Form 4457 serves an important purpose for some foreign 
governments, but could be improved by harmonizing CBP procedures for 
Form 4457 between different CBP offices to ensure the forms are being 
issued consistently. Some commenters asserted that they would support a 
simplified system that would be based on U.S. passports, possibly 
linked to an electronic version of the CBP Form 4457.
    BIS response: BIS was aware of these types of concerns, including 
the recent history of this issue under the ITAR. The Commerce May 24 
rule stated that whether and how BIS includes this requirement in a 
final rule would be based on whether CBP is able to update its 
processes, and other agencies as needed, to allow for individuals to 
easily file EEI in AES by the time a final rule is published. The 
Commerce May 24 rule also noted that if CBP is not able to do so, then 
the final rule may direct exporters to continue to use CBP's existing 
process, which is the use of the CBP Form 4457, until a workable 
solution is developed or CBP suggests an alternative simplified 
solution for gathering such information for temporary exports of 
personally-owned firearms and ammunition.
    At this time, BIS notes that CBP and the U.S. Census Bureau have 
not made changes to the AES system on the Automated Commercial 
Environment (ACE) that would address the concerns expressed. Therefore, 
taking that into account and the comments received on the Commerce May 
24 rule, this final rule does not adopt the requirement for individuals 
exporting their personally owned firearms and ammunition under License 
Exception BAG to file in AES. Instead, this final rule incorporates the 
requirement for individuals to file the CBP Form 4457. BIS notes that 
if CBP and the U.S. Census Bureau later adopt changes that would 
address the underlying issues, or if CBP adopts changes to the process 
for submitting the CBP Form 4457, then BIS would make conforming 
changes to the EAR.
    Comment 70: BIS also received comments expressing concern over the 
availability of License Exception BAG for firearms. One commenter 
requested that the provision authorizing license-free exports of semi-
automatic rifles by citizens and legal permanent residents should be 
removed, because a sufficient justification was not provided in the 
Commerce May 24 rule. Another commenter asserted that if a firearm is 
stolen or lost that is exported under License Exception BAG, there will 
be little that can be done to recover the weapon. The commenter also 
asserted it will be easier for smugglers to take advantage of License 
Exception BAG to facilitate trafficking. One commenter

[[Page 4154]]

expressed concern that foreigners temporarily in U.S. will abuse 
License Exception BAG. One commenter asserted that the May 24 rule 
would not stop non-resident aliens leaving the United States via 
commercial airlines from taking firearms ``accessories,'' 
``attachments,'' ``components,'' ``parts,'' and ammunition with them.
    BIS response: BIS acknowledges these concerns but disagrees that 
additional changes to this final rule are warranted. The availability 
of License Exception BAG will be made to be consistent with 22 CFR 
123.17(c), which authorizes U.S. persons to take up to three non-
automatic firearms and up to 1,000 cartridges therefor abroad for 
personal use. As far as the potential for items to be lost or stolen, 
License Exception BAG requires the exporter to maintain control of 
their personal belongings and to return with those items unless 
destroyed overseas and the requirements are more straightforward than a 
commercial transaction in which there are multiple parties. BIS notes 
that related to loss or theft the concern applies equally if a firearm 
was exported under a Commerce license. Further, the U.S. Government 
maintains oversight through the requirement in this final rule for the 
CBP Form 4457 to be filed, along with the export requirements to 
present the firearm to CBP prior to export under License Exception BAG. 
In addition, this final rule requires the serial number, make, model, 
and caliber of the firearm to be included on the CBP Form 4457. When 
the U.S. citizen or permanent resident alien returns, the U.S. 
Government expects and requires that the same firearm to be returned as 
included on the CBP Form 4457. Failure to comply with these 
requirements could subject a U.S. citizen or permanent resident alien 
to administrative and/or criminal penalties depending on the specifics 
of the potential violation. BIS notes that License Exception BAG for 
non-resident aliens will be limited to allowing nonresident aliens 
leaving the United States to take firearms, and ammunition controlled 
by ECCN 0A501 or 0A505 that they lawfully brought into the United 
States, under the provisions of Department of Justice regulations at 27 
CFR part 478. This is an important safeguard to ensure that the items 
being exported under License Exception BAG are limited to those that 
were lawfully brought into the U.S. The availability of License 
Exception BAG for these non-resident aliens will also be consistent 
with 22 CFR 123.17(d), which authorizes foreign persons leaving the 
United States to take firearms and ammunition controlled under Category 
I(a) of the USML (both non-automatic and semi-automatic) that they 
lawfully brought into the United States. The export of ``accessories,'' 
``attachments,'' ``components,'' and ``parts'' is not eligible for 
License Exception BAG and would require a separate U.S. Government 
authorization.
    Comment 71: One commenter noted that Sec.  740.14(c)(1) ``Limits on 
eligibility'' currently states that the items must be ``owned by'' the 
individuals rather than ITAR Sec.  123.17(c)(3)'s focus on the person's 
``exclusive use'' and recommended conforming the EAR with the ITAR's 
scope.
    BIS response: BIS does not agree. The requirements in Sec.  
740.14(c)(1) apply to all items that subject to the EAR that are 
eligible, so these requirements are intended to be broader than the 
exclusive use limitation in paragraph (e) (Special provisions for 
firearms and ammunition).

Reporting Requirements

    Comment 72: BIS received a number of comments related to reporting 
requirements. One commenter asserted that it appears that requiring 
conventional arms reporting for firearms to be controlled under ECCN 
0A501.a and .b would add welcomed specificity to reports required by 
the United Nations and the Wassenaar Arrangement while another 
commenter was concerned that firearms are being singled out for 
conventional arms reporting. One commenter asserted that exporters 
should not have to submit reports under the conventional arms reporting 
for the Wassenaar Arrangement and the United Nations because BIS 
already has ways to obtain this information from other U.S. Government 
sources.
    BIS response: BIS agrees that the conventional arms reporting 
requirements will improve transparency and meet U.S. Government 
multilateral commitments to the Wassenaar Arrangement and the United 
Nations. BIS notes that other USML Categories that were revised that 
moved items to the CCL under ``600 series'' and 9x515 ECCNs were not 
identified under the Wassenaar Arrangement or United Nations List for 
requiring reporting for conventional arms. Some of the USML Category I 
items being moved to the CCL are identified under the Wassenaar 
Arrangement or United Nations List for requiring conventional arms 
reporting and thus were included to meet U.S. Government commitments.
    To ease reporting requirements on exporters as suggested by one 
commenter and provide greater flexibility for industry, BIS clarifies 
that for the reporting required in this final rule can be accomplished 
in one of two ways. First, the exporter can follow the process outlined 
in part 743 by sending in reports to BIS with the required information. 
However, because of the EEI filing requirements in Sec.  
758.1(g)(4)(ii) for the firearms that require conventional arms 
reporting, all conventional arms reporting requirements for firearms 
should be able to be met by using the alternative submission method 
described below in the regulatory changes. Under the alternative 
method, the U.S. Government will rely on the EEI record in AES for 
firearms classified under 0A501.a and 0A501.b, by the exporter being 
required to always include as the first text in the Commodity 
Description field in AES the first six characters of the ECCN number, 
i.e., ``0A501.a'' or ``0A501.b.''
    Comment 73: One commenter raised questions whether the requirements 
of the Paperwork Reduction Act (PRA) were met for imposing a new 
requirement and whether this information would be needed by BIS.
    BIS response: BIS had created this reporting requirement in the 
April 16, 2013, initial implementation rule, including providing 
estimates for the anticipated burden at that time in anticipation of 
the full completion of the USML to CCL review process and these end 
item firearms being moved to the CCL. BIS makes this clearer in this 
final rule, as well as describing the alternative method that will 
eliminate the need for any type of additional reporting and instead use 
the data that will be reported in the EEI filing in AES.
    Comment 74: One commenter asserted that BIS reporting provides even 
less data than the Department of State 665 report and requested that 
BIS improve its reporting.
    BIS response: In the past, BIS has provided similar data that is 
included in the Department of State 655 report in the BIS annual 
foreign policy report and in reports on the BIS website detailing 
exports by country and largest quantity of ECCNs being exported to the 
respective countries. Going forward under ECRA, BIS will be required to 
submit an annual report to Congress that will include the information 
specified in Section 1765 of ECRA, including implementation of end-use 
monitoring of military items on the EAR. BIS notes because this final 
rule will require EEI filing in AES for the firearms moved to the CCL 
and CBP Form 4457 for License Exception BAG, BIS will have data

[[Page 4155]]

available on exports of firearms moved from USML Category I to the CCL.

Serial Numbers, Make, Model, and Caliber in AES (Sec.  758.1(g)(4))

    Comment 75: Several commenters asserted they were opposed to the 
expanded data elements (i.e., serial numbers, make, model, and caliber) 
required as part of the EEI filing to AES for firearms that would be 
transferred from the USML to the CCL, suggesting that the expanded data 
elements would exacerbate the problems for private travelers forced to 
use the system and violate the spirit of congressional prohibitions 
against Federal firearm registries. BIS also received comments 
asserting that filing in AES poses an undue burden on exporters to file 
information that is otherwise available to U.S. Government, such as 
through the Gun Control Act and ATF regulations, and that it may 
violate the PRA because the burden is redundant. Another commenter 
asserted that because of AES character limitations it may be difficult 
or impossible to include the serial number, make, model, and caliber 
information. In addition, one commenter asserted that the manufacturer, 
model number, and caliber does not assist law enforcement verify the 
export because the Foreign Trade Regulations (FTR) and EAR already 
require that the item description entered in the EEI filing in AES 
conform to that shown on the license. One commenter asserted it 
generally supports strong oversight measures for arms transfers and 
from that perspective, it welcomes detailed digital record-keeping 
requirements. Another commenter recommended using the term ``model'' or 
``model designation'' rather than ``model number,'' consistent with ATF 
regulations.
    BIS response: BIS has included filing requirements only when 
necessary to ensure that export control concerns will be protected, 
including export enforcement and transparency concerns. As noted above, 
BIS in this final rule addresses the concerns about exports under 
License Exception BAG by not requiring an EEI filing in AES for such 
exports, though CBP Form 4457 will require information on the serial 
numbers, make, model, and caliber for the firearms being exported. This 
much more focused requirement will also be responsive to assertions 
that the information proposed to be collected was an undue paperwork 
burden on exporters.
    While other Federal regulations may require similar information, 
BIS would not have the legal authority to subpoena or otherwise request 
the same information unless the records are required to be kept under 
the EAR. If different regulations require the same information, then 
there should be no additional burden on exporters or other relevant 
parties for maintaining this information to meet their various 
regulatory requirements. Typically, the EAR is flexible in how specific 
records are maintained since it regulates a variety of industries with 
different norms.
    For items that are exported under a U.S. Government authorization 
for temporary export, it is still warranted to require that information 
to be filed as EEI in AES. This final rule adopts a revised requirement 
in Sec.  758.1(g)(4) to limit it to temporary exports from the United 
States or when the license or other approval contains a condition 
requiring all or some of this information to be filed as EEI in AES. 
This final rule clarifies that a temporary export for purposes of Sec.  
758.1(g)(4) is any export whereby the EAR authorization requires 
subsequent return to the United States (e.g., License Exception TMP or 
a license authorizing a temporary export). BIS notes that this revised 
approach scales back the reporting requirement significantly, focuses 
it on exports of the primary concern for ensuring the U.S. Government 
can confirm what was temporarily exported is what will be returned, and 
importantly still retains the ability of BIS to impose this condition 
when warranted on a case-by-case for any particular license where BIS 
and the other license review agencies believe requiring the filing of 
this information as EEI in AES is warranted. BIS is aware that the 
Department of State sometimes includes such a requirement as a proviso 
on some of its licenses or approvals for firearms, so the requirement 
that is included in this final rule that retains the ability of BIS to 
impose such a condition on Commerce licenses is consistent with 
licensing practices under the ITAR.
    BIS has confirmed with CBP and the U.S. Census Bureau that AES on 
the ACE platform can accommodate EEI filers to submit the serial 
number, make, model, and caliber information. Under the current ITAR 
licensing practices, sometimes provisos are included on a State license 
or other approval that requires this information to be entered as EEI 
in AES, and BIS is not aware of the current system not permitting the 
proper filing of this information as EEI in AES.
    BIS generally supports strong oversight. It also accepts the 
recommendation to adopt the term ``model'' instead of the proposed 
``model number.''
    Comment 76: Two commenters asserted that the only place where the 
reporting requirement of serial numbers, make, model, and caliber may 
be warranted was for License Exception TMP. One of these commenters 
noted that ``such a requirement of mandatory serial number reporting in 
AES might make sense only for temporary exports and imports under TMP 
in particular, to allow re-import procedures to be followed and 
verified.'' However, the requirements proposed in new Sec. Sec.  
758.10(b)(1)(ii) and 740.9(b)(5)(iv)(B) already cover this by requiring 
serial numbers as part of a complete list to be submitted to CBP at the 
time of import and/or export.
    BIS response: BIS clarifies that the reference in License Exception 
TMP in new Sec. Sec.  758.10(b)(1)(ii) and 740.9(b)(5)(iv)(B) are for 
information to be provided at the time of temporary import and export 
of firearms temporarily in the United States. The proposed requirements 
in Sec.  758.10(b)(1)(ii) in the phrase ``or other appropriate import 
documentation (or electronic equivalents)'' and the reference to ``or 
electronic equivalents'' was referring to the possibility that such 
information could be provided to CBP in person or electronically by 
using the ACE portal at the time of temporary import and subsequent 
export, so BIS does not see an inconsistency with the proposed 
requirement and therefore will include the requirement in this final 
rule as originally proposed. BIS agrees with the commenter's assertion 
that for firearms temporarily exported under License Exception TMP 
under paragraph (a)(6), there is a possibility that in certain cases 
the returned firearm may not be the same. This final rule includes a 
Note 3 to paragraph (g)(4) in Sec.  758.1 to provide guidance on that 
issue.

Entry Clearance Requirements for Temporary Imports

    Comment 77: BIS received comments asserting that foreign visitors 
exporting personal firearms after temporary import should not have to 
file in AES for many of the same reasons why filing in AES for exports 
authorized under License Exception BAG is not appropriate. Another 
commenter asserted that such AES declaration requirement would 
discourage foreign participants from coming to the U.S. for hunting and 
competitive shooting.
    BIS response: BIS does not agree with these assertions. As noted 
above, one of the permissible identifiers in filing in AES is a foreign 
passport, so the most substantive concern for individuals filing in AES 
does not apply for these

[[Page 4156]]

filings. In addition, those using License Exception TMP will generally 
be companies, so the concerns expressed about AES being more oriented 
to companies compared to individuals also does not apply. For these 
reasons, BIS in this final rule publishes the changes as proposed. In 
addition, as noted above, each country, including the United States, 
imposes requirements that it believes are warranted to regulate the 
importation and use of firearms in its country. U.S. hunters and 
competitive shooters that travel overseas and foreign hunters and 
competitive shooters who come to the United States understand that 
firearms are regulated.
    Comment 78: One commenter asserted that the ATF Form 6NIA can 
confirm that the individual is returning with the same firearm that was 
brought to the U.S., so there is no need to require EEI filing in AES.
    BIS response: BIS does not accept this change. To properly 
administer and enforce export controls, BIS must have access to basic 
information about an item and cannot solely rely on information 
collected by another agency, though this information, as appropriate, 
could supplement information collected by BIS.
    Comment 79: One commenter asserted that the ITAR does not have the 
same type of EEI filing in AES requirement, so including this under the 
EAR would be more restrictive.
    BIS response: BIS clarifies here that under the ITAR, the 
Department of State is licensing the temporary import and export, which 
required much of the same information requirements. The Commerce May 24 
rule did not change the basic construct for how the EAR regulates 
imports, but BIS needed a means to track firearms temporarily entering 
the U.S. for subsequent export.
    Comment 80: One commenter requested text be added to Sec.  
758.10(a)(2) to exempt from the entry clearance requirements temporary 
imports by nonresident aliens who temporarily import firearms under the 
provisions of 27 CFR 478.115(d).
    BIS response: BIS clarifies here the purpose of Sec.  758.10. 
Because a nonresident alien, e.g., a foreign hunter, will need an 
approved Form 6NIA (ATF Form 5330.3D Application/Permit for Temporary 
Importation of Firearms and Ammunition by Nonimmigrant Aliens) from ATF 
prior to bringing the USMIL firearm or ammunition into the U.S., the 
ATF controls will account for the temporary import. Therefore, License 
Exception BAG does not need to be referenced in Sec.  758.10. The 
subsequent export out of the U.S. will require an EAR authorization and 
would need to be done in accordance with License Exception BAG, or some 
other U.S. Government authorization if License Exception BAG was not 
available.
    Comment 81: One commenter asserted that the new Sec.  758.10 
``Entry clearance requirements for temporary imports'' appears to apply 
to all temporary imports at the time of temporary import. This 
commenter asserted that as the requirements of Sec.  758.10 should not 
apply to nonresident aliens temporarily importing firearms under the 
separate provisions of the ATF, and recommended clarifying this in the 
final rule.
    BIS response: BIS agrees. This final rule clarifies that the 
requirements of Sec.  758.10 do not apply to temporary imports for 
nonimmigrant aliens under the provisions of the Gun Control Act of 1968 
and administered in part with the ATF Form 6NIA.
    Comment 82: One commenter was concerned that the new Sec.  758.10 
``Entry clearance requirements for temporary imports'' does not address 
the potential use of License Exception RPL. Specifically, proposed 
Sec.  758.10(b)(1)(i) requires a statement to CBP certifying ``. . . 
This shipment will be exported in accordance with and under the 
authority of License Exception TMP,'' which would be a false 
certification if RPL were being used.
    BIS response: BIS agrees and accepts adding License Exception RPL 
as a valid purpose for a temporary import under Sec.  758.10. For the 
same reason, this final rule adds BIS licenses as a valid purpose for a 
temporary import under Sec.  758.10. In addition, this final rule 
clarifies that a temporary import for repair or servicing in the United 
States does not require an EAR authorization, but the subsequent export 
must be authorized either as eligible for License Exception RPL or 
authorized under a BIS license at the time of entry. For example, a BIS 
license would be required at the time of entry if the repair or 
servicing of a temporarily imported firearm would result in enhanced 
capability of the item because License Exception RPL is not available 
for such enhancements. Instead, under this final rule, the exporter 
could obtain a BIS license to authorize such an export that was brought 
into the United States as a temporary import. Section 758.10(a)(1) 
addresses these types of imports for repair and servicing. For 
additional information, please see section Entry clearance requirements 
for temporary imports (Sec.  758.10) below that details the 
requirements for use of these authorizations.

Relationship Between EAR and ATF Regulations

    Comment 83: One commenter requested the ATF Ruling 2004-2 be 
amended to account for this USML to CCL transition, in order to not be 
more restrictive under the EAR compared to the ITAR. The commenter 
asserted that the ITAR draws a clear distinction between permanent and 
temporary import jurisdiction in 22 CFR 120.18, although certain items 
regulated under the Gun Control Act or National Firearms Act, if 
authorized for import under those laws, continue to require 
transactional import approval from ATF for temporary imports unless ATF 
Ruling 2004-2 (April 7, 2004) permits the DSP-61 or ITAR exemption to 
substitute for this approval.
    BIS response: The changes included in the Commerce May 24 rule 
under Sec. Sec.  740.9 and 758.10 were intended to address issues 
related to temporary importation under the EAR. As noted above, this 
final rule adds License Exception RPL and BIS licenses to Sec.  758.10 
to further address issues related to temporary imports under the EAR. 
Other agencies will review, and if necessary, address, any effects of 
these final rules.
    Comment 84: One commenter recommended coordinating proposed changes 
with ATF so that the corresponding changes are made to the USMIL at the 
same time, which would prevent businesses from having to consult both 
the USML and USMIL when deciding whether a transaction involves 
brokering.
    BIS response: The USML and the USMIL are separate lists of AECA 
defense articles with both shared as well as different AECA objectives, 
and as such warrant the retention as separate lists.
    Comment 85: One commenter was concerned that removing license 
requirements for temporary imports of the items removed from the USML 
would create another channel for criminal elements to obtain weapons in 
the U.S.
    BIS response: BIS disagrees. Temporary imports will be addressed by 
BIS, and the same type of U.S. Government authorization requirement 
will apply for exports of items temporarily imported as other exports 
under the EAR.
    Comment 86: One commenter was concerned that the Commerce May 24 
rule did not provide a mechanism, such as a DSP-73, for certain 
firearms to be temporarily exported and subsequently returned to the 
U.S., given the firearm importation prohibitions under 18

[[Page 4157]]

U.S.C. 922(l) and 925(d)(3). This commenter asserted that unlike many 
other items that have transitioned from the USML to the CCL, firearms 
are subject to unique restrictions on the permanent import side under 
the jurisdiction of the ATF. This commenter asserted that the 
Department of State's jurisdiction over temporary exports and temporary 
imports has played an important role by providing companies with a 
viable method of bringing their guns back into the U.S. without running 
afoul of ATF's strict importation prohibitions and similar treatment 
should be retained under the EAR.
    BIS response: BIS clarifies that BIS will require a U.S. Government 
authorization for temporary exports. The EAR authorizations most likely 
to be used to authorize temporary exports include License Exceptions 
BAG and TMP, as well as Commerce licenses. Therefore, BIS does have 
similar authorization requirements and approval mechanisms as under the 
ITAR. BIS notes that the import back into the U.S. will not require an 
EAR authorization.
    Comment 87: One commenter asserted that a DSP-73 license is vital 
because it covers both the U.S. export and U.S. import requirements and 
the commenter is concerned without adding a similar type of 
authorization under the EAR that certain temporary exports for use in 
filming will not be possible because the return of the exported 
firearms would be subject to ATF's permanent import process which 
restricts many types of firearms pursuant to Federal law, e.g., short 
barreled shotguns. This commenter asserted that because most firearms 
temporarily exported for the movie industry are either military 
surplus, non-sporting, or National Firearms Act weapons, of which 
importation is prohibited under the ATF regulations, that this is an 
importation issue to be addressed to ensure these types of temporary 
exports can still proceed under the EAR and ATF construct, similar to 
the ITAR and ATF construct.
    BIS response: A Commerce license to authorize a temporary export 
would authorize the temporary export and require the item's return. A 
separate EAR authorization is not required for the import back into the 
United States after the temporary export since this would be covered 
under the scope of the authorizing export license.
    Comment 88: One commenter requested clarification for permanent 
import after temporary export for repair or servicing under License 
Exception TMP under paragraph (a)(6). This commenter asserted it agreed 
with the proposed changes but requested that the subject of temporary 
export of firearms, specifically vintage shotguns with barrel lengths 
over 18 to Canada, be clearly addressed.
    BIS response: BIS notes that the long barrel shotguns this final 
rule will move from ECCN 0A984 to 0A502 may require a U.S. Government 
authorization depending on the specifics of the export, in particular 
the destination for the export. Regardless of the EAR authorization 
used to authorize the export, a separate EAR authorization will not be 
required for the subsequent import into the United States.
    Comment 89: One commenter asserted that ATF 27 CFR 478.92 includes 
a requirement to mark firearms being imported with the importer's name 
and address. This commenter was concerned that this destroys the 
originality and affects the value of the firearm that was temporarily 
exported. This commenter asserts because these long barreled shotguns 
fall under the EAR, the ATF will not clarify the requirement on 
shotguns and it creates confusion. This commenter requests the final 
rule to clarify this issue regarding markings for shotguns being moved 
from ECCN 0A984 to ECCN 0A502, as well as for the other firearms being 
moved from the USML to the CCL.
    BIS response: BIS clarifies here that the EAR does not require any 
types of physical markings to be made on a firearm or any other 
commodity being temporarily exported for repair or servicing for return 
to the United States. For a licensed transaction in an exceptional 
case, a condition could potentially be placed on a Commerce license 
that required the exporter to make some type of physical marking on the 
commodity, but this would be extremely rare under BIS licensing. If 
additional safeguards were needed, BIS licenses would typically require 
additional documentation to confirm delivery verification or to require 
the exporter to get other written affirmations from the other parties 
to the transaction.

EAR Recordkeeping Requirements

    Comment 90: One commenter asserted that the GCA requires all 
Federal Firearm Licensees to maintain firearm records for 20 years 
after the date of disposition and that the proposed change requiring 
records under the EAR is redundant and may cause confusion because of 
the different record retention periods. This commenter asserted in 
complying with the EAR, companies may inadvertently violate the GCA.
    BIS response: BIS does not agree. The EAR does not require records 
to be destroyed after five years, just that the records be kept for at 
least that long. Nothing in the EAR prohibits maintaining the records 
for longer periods.
    Comment 91: One commenter asserted that the recordkeeping 
requirement for warranty certificates for people outside the U.S. would 
be more restrictive than the ITAR. The commenter asserted that BIS has 
not provided a coherent explanation for why the new recordkeeping 
burden makes sense, is related to exports, or would be of benefit to 
the enforcement of the export control laws.
    BIS response: BIS does not agree with the requested change to 
remove the warranty certificate requirement as a recordkeeping 
requirement. As noted above by many commenters, BIS has an interest in 
ensuring the firearms and related items on the CCL are used by the 
intended end user for the intended end use, and BIS needs any 
information that may be relevant to the ultimate disposition of those 
firearms to safeguard U.S. national security. The recordkeeping 
requirements for the warranty certificates included in the Commerce May 
24 rule and in this final rule will be an additional safeguard for EE 
to have further insights into where a firearm exported under a U.S. 
Government authorization may have ultimately ended up after export. A 
warranty certificate that is submitted by a person located outside the 
United States to a U.S. exporter is relevant to the U.S. Government for 
export control enforcement purposes. The ITAR and EAR control 
structures are not the same, so in certain cases a restriction may be 
more restrictive under the EAR compared to the ITAR and this is an 
example of where the EAR will be more restrictive, but it is still 
warranted in the context of the EAR.
    Comment 92: One commenter asserted that warranties are issued by 
the manufacturer, not the exporter and that many manufacturers do not 
always issue specific ``warranty certificates'' to individuals. This 
commenter asserted that most manufacturers provide warranty statements 
in a broad boilerplate statement included in an instruction manual, or 
on their website. This commenter also asserted that there is thus no 
way to know when that information is accessed by a foreign person or 
sent to an address outside the U.S. One commenter asserted that a 
potential issue is with the recordkeeping requirement of warranty 
certificates is that an exporter may not have a manufacturer's (or any 
other)

[[Page 4158]]

warranty certificate as part of the transaction. This commenter 
requested some clarification on the requirements.
    BIS response: BIS clarifies here that the EAR recordkeeping 
requirements generally do not impose an affirmative duty to create a 
record. The recordkeeping requirements typically apply if in the normal 
course of your business activities related to an export, reexport, or 
transfer (in-country) a record is created or received that is within 
the scope of records that must be retained for purposes of the EAR 
recordkeeping requirements.
    BIS confirms here that if the manufacturer is not the exporter, it 
is not required to keep the warranty certificate for purposes of part 
762. Section 762.1(b) (Persons subject to the part) identifies the 
persons that are required to keep records for purposes of part 762 of 
the EAR.
    Comment 93: One commenter asserted that there is the possibility 
that retaining such information that would be contained in a warranty 
certificate may violate the privacy laws of other countries, such as 
the General Data Protection Regulation (GDPR) (European Union (EU)).
    BIS response: BIS is not in a position to opine on the 
applicability of the GDPR here but notes that parties transacting in 
items subject to the EAR are subject to U.S. laws and regulations, 
including recordkeeping requirements.

Alignment With the Wassenaar Arrangement Munitions List

    Comment 94: One commenter asserted that the proposed changes do not 
appear to be in line with established WAML I-III, suggesting that the 
inclusion of semi-automatic weapons in WAML1 explicitly as munitions 
demonstrates an intentional differentiation between military and 
security items, on one hand, and dual-use items on the other.
    BIS response: On the general question of whether the changes 
included in the Commerce May 24 rule align with the WAML, BIS notes 
that Wassenaar Arrangement member countries implement the WA control 
lists in accordance with their own national export controls. The items 
being moved from USML Category II are controlled under four new ``600 
series'' ECCNs. The items moved from USML Categories I and III are not 
controlled in the ``600 series,'' but importantly are still subject to 
the same NS 1 license requirement that would apply if these WAML items 
were added to the ``600 series.'' In addition, although not derived 
from the Wassenaar Arrangement, the end item firearms are subject to a 
license requirement for the Firearms Convention (FC)--meaning that the 
end item firearms are subject to an even more restrictive license 
requirement under the EAR compared to the ``600 series,'' 9x515 items, 
and other items controlled for NS reasons on the CCL. In addition, the 
final rule also includes other provisions, such as requiring 
conventional arms reporting, that reflects U.S. Government commitments 
to the Wassenaar Arrangement and to the United Nations. Thus, the 
changes are consistent with the U.S. Government's commitments to the 
Wassenaar Arrangement.
    Comment 95: One commenter asserted semi-automatic weapons used by 
peacekeepers, military, and police are intended to be controlled as 
munitions. The proposal to move semi-automatic firearms and large 
caliber rifles to ECCN 0A501 on the CCL does not appear to be in line 
with this designation.
    BIS response: For the reasons noted above in the BIS response to 
Comment 1, BIS does not agree. BIS notes that the export of semi-
automatic weapons used by peacekeepers, military, and police will still 
require U.S. Government authorization and in most cases will require an 
approved license under the EAR, except when destined to the U.S. 
Government or it is a semi-automatic weapon that was legally exported 
or reexported under U.S. export controls that is being returned after 
servicing or repair under License Exception RPL.
    Comment 96: One commenter provided several comments related to the 
combined ITAR and EAR amendments to U.S. Government commitments to 
multilateral controls, that included 33 numbered topics listed in the 
order that topic appears in the WAML and then subdivided into three 
parts, with the following number of examples: 27 U.S. and multilateral 
texts are either identical or substantially equivalent; 74 US controls 
omit what WAML controls (or WAML omits U.S. decontrols); and 165 WAML 
omits what U.S. controls (or U.S. omits WAML decontrols).
    BIS response: BIS notes that this one commenter submitted a large 
number of comments regarding the alignment with the WAML. For the 
comments where BIS does not believe any changes are needed to align 
with the WAML, BIS has not summarized each of those comments in this 
final rule because of the length of the comments, but does confirm that 
BIS did review each of the comments. For many of these comments, the 
items were already controlled prior to the effective date of this final 
rule or will be controlled for NS reasons on the CCL on the effective 
date of this final rule, and for certain comments the ITAR retains 
control of the items that the commenter thought would not be adequately 
controlled under the USML. For the alignment with the WAML comments 
where the commenter has raised an issue that BIS believes warranted a 
change to ensure the changes in the final rule align with the WAML, 
those suggested changes, e.g., the revisions described above to ECCN 
0A018 and 0A505, are described above in greater detail, along with the 
BIS responses.

Delayed Effective Date for a Final Rule

    Comment 97: BIS received a number of recommendations on the 
appropriate length for the delayed effective date for the final rule, 
ranging from 90 to 180 days for delayed effective dates. The rationale 
for the shorter length was to allow small businesses to immediately 
benefit while those recommending longer or split effective dates 
suggested the time period would allow time for updates to IT systems, 
policies, and processes. Other commenters asserted that they supported 
a split implementation period (180 days for certain provisions, 
effective immediately or short as possible for other provisions).
    BIS response: BIS has determined that a 45-day delayed effective 
date is appropriate. To address concerns that a longer delayed 
effective date and transition period may be warranted, BIS highlights 
here the importance of the various grandfathering provisions included 
in General Order No. 5 in Supplement No. 1 to part 736 of the EAR and 
in the previously published State transition guidance, that is 
supplemented with information on the DDTC website.
    Comment 98: One commenter requested that BIS delay publishing a 
final rule until the Government Accounting Office (GAO) or the Library 
of Congress has publicly reported to the Congress their impact on 
numerous statutes referring to ``defense articles,'' because of the 
potential loss of so many U.S. arms export controls and likely negative 
impact on curbing irresponsible and illegal arms transfers.
    BIS response: BIS welcomes the publication of the GAO report. 
However, the timing of the publication of a final rule and its 
effective date are not contingent on the publication of the GAO report.

Description of Regulatory Changes

    This final rule creates 17 new ECCNs on the CCL to control items 
that are being removed from the USML as

[[Page 4159]]

described in a final rule issued concurrently by the Department of 
State. BIS did not receive any comments on the proposed addition of 
ECCNs 0A503, 0B602, 0D501, 0D505, 0D602, 0E502, 0E504, 0E505, and 0E602 
in the Commerce May 24 rule, so this final rule adopts these ECCNs as 
proposed, except for one clarification made to ECCN 0B602.a.8 and minor 
clarifications to the Related Controls paragraphs to ECCNs 0D501, 
0D505, 0D602, 0E502, and 0E505. In ECCN 0B602, this final rule replaces 
``gun straightening presses'' with the more specific control parameter 
``barrel straightening presses.'' This change is made to clarify that 
the straightening presses controlled under ECCN 0B602.a.8 are those for 
barrels. In the Related Controls paragraphs for ECCNs 0D501, 0D505, 
0D602, and 0E505, this final rule removes the parenthetical phrase that 
references 22 CFR 121.1 and the related USML category because this 
information is duplicative of existing text in these Related Controls 
paragraphs. This final rule also revises the Related Controls paragraph 
in ECCN 0E502 by removing ``N/A'' and adding that ``[t]echnical data 
required for and directly related to articles enumerated in USML 
Category I are `subject to the ITAR.' '' This clarification does not 
change the scope of ECCN 0E502 and simply alerts the public to review 
the ITAR for such technical data. BIS does not make any additional 
changes to proposed ECCN 0E501 and adopts it as proposed. See the 
Commerce May 24 rule for additional background on these provisions. BIS 
received comments on seven proposed ECCNs for which the agency is 
adopting additional changes: 0A501, 0A502, 0A504, 0A505, 0A602, 0B501, 
and 0B505. The summary below describes each of these ECCNs and the 
controls that apply to them.

New ECCN 0A501: Firearms and Related Commodities

    This final rule adds new ECCN 0A501 and applies national security 
(NS Column 1), regional stability (RS Column 1), Firearms Convention 
(FC Column 1), United Nations (UN), and anti-terrorism (AT Column 1) 
reasons for control to the non-automatic and semi-automatic firearms, 
including rifles, carbines, revolvers or pistols listed in the ECCN 
entry in the regulatory text to this final rule, enumerated parts and 
components and to ``specially designed'' ``parts,'' ``components,'' 
``accessories'' and ``attachments'' for those firearms and ``parts'' 
and ``components.''
    This final rule adds ECCN 0A501.y and only imposes an anti-
terrorism (AT Column 1) and United Nations (UN) reasons for control and 
covers such items as scope mounts or accessory rails, iron sights, 
sling swivels, butt plates, recoil pads, bayonets, and stocks or grips 
that do not contain any fire control ``parts'' or ``components.''
    This final rule adds a technical note to ECCN 0A501 stating that 
``parts'' and ``components'' include ``parts'' and ``components'' that 
are common to firearms described in ECCN 0A501 and to firearms 
``subject to the ITAR.''
    It also adds another note to ECCN 0A501 to state that certain 
firearms and similar items are EAR99. Those items are: Antique firearms 
(i.e., those manufactured before 1890) and reproductions thereof, 
muzzle loading 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.
    In addition, for purposes of new ECCN 0A501 and the rest of the new 
ECCNs described below, items previously determined to be ``subject to 
the EAR'' under a commodity jurisdiction determination issued by the 
U.S. Department of State that were designated as EAR99 will generally 
not be classified in any of the new ECCNs that are being created with 
this final rule. As a conforming change, this final rule revises 
paragraph (e)(3) of General Order No. 5 to add a reference to the 
``0x5zz'' ECCNs this final rule adds to the CCL.
    This final rule adopts the following additional changes to ECCN 
0A501 to respond to the comments received on the Commerce May 24 rule:
    This final rule revises Related Controls paragraph (1) to clarify 
that the magazines that are ``subject to the ITAR'' are those with a 
capacity ``greater than 50 rounds.'' The Commerce May 24 rule used 
terminology in the control parameter that created ambiguity because it 
was slightly different than as proposed in the State May 24 rule, so 
this final rule revises the EAR text based on the comments received to 
align with the terminology used on the ITAR.
    This final rule revises ``items'' paragraph (a) to remove the 
phrase ``of caliber less than or equal to .50 inches (12.7 mm)'' and 
add in its place the phrase ``equal to .50 caliber (12.7 mm) or less.'' 
In making this change, BIS uses the same control text of ``.50 caliber 
(12.7 mm)'' as used in the Department of State companion rule.
    This final rule adds a Note 1 to paragraph 0A501.a. This note 
clarifies that combination pistols are controlled under items paragraph 
.a. The note also defines the term `combination pistol' for purposes of 
this ECCN. A combination pistol has at least one rifled barrel and at 
least one smoothbore barrel. Because of the hybrid nature of these 
firearms, commenters requested that this type of clarifying note be 
added.
    This final rule adds a Note 2 to 0A501.d to address a question, 
raised by the commenters, whether magazines with a capacity of 16 
rounds or less are controlled under 0A501.x or designated EAR99. The 
new note specifies that magazines with a capacity of 16 rounds or less 
are controlled under 0A501.x. BIS notes this was the intent of the 
Commerce May 24 rule, but because commenters were not sure, this rule 
specifies where these magazines are controlled.
    This final rule revises ``items'' paragraph (e) to add the phrase 
``or machined items'' to specify that ECCN 0A501.e includes those 
machined items even if they are not casted, forged, or stamped.
    This final rule revises the introductory text of 0A501.y to add the 
phrase ``as follows, and ``parts,'' ``components,'' ``accessories,'' 
and ``attachments'' ``specially designed'' therefor'' to clarify, 
consistent with the other .y paragraphs on the CCL, that the 
``specially designed'' ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' for .y items will also be controlled under this .y 
paragraph and not controlled under 0A501.x.
    This final rule adds a new paragraph y.7 to control firearms 
manufactured from 1890 to 1898 and reproductions thereof. This final 
rule makes this change to address commenters that asserted that the 
year 1890 should be changed to 1898 in Note 3 to 0A501 for defining 
antique firearms. BIS did not accept the change because the year 1890 
is based on the Wassenaar Arrangement, but does address this concern by 
controlling these firearms under a new .y paragraph. As a conforming 
change, this final rule adds a new License Requirement Note to ECCN 
0A501 to specify that a license is required for exports and reexports 
to China of 0A501.y.7 firearms.
    This final rule adds a new Note 4 to 0A501, to clarify the 
classification of certain muzzle loading (black powder) firearms. This 
is a conforming change as part of the removal of the control text of 
ECCN 0A018 in this final rule.

New ECCN 0A502: Shotguns and Certain Related Commodities

    This final rule adds new ECCN 0A502 to control both the shotguns 
being moved from the USML that are being added to the CCL (barrel 
length less than 18 inches) and the shotguns and the enumerated 
``parts'' and

[[Page 4160]]

``components'' controlled in ECCN 0A984 (barrel length 18 inches or 
greater) prior to this final rule. This final rule controls shotguns 
with a barrel length less than 18 inches under NS Column 1, CC Column 
1, FC, UN, and AT Column 1 plus regional stability (RS Column 1). 
Shotguns controlled in ECCN 0A984 that are transferred to ECCN 0A502 by 
this final rule will retain Firearms Convention (FC), crime control (CC 
Column 1, 2, or 3 depending on barrel length and end user), and United 
Nations (UN) reasons for control. Such shotguns will not be controlled 
for national security reasons because they are not on the WAML.
    This final rule adopts the following additional changes to ECCN 
0A502 to respond to the comments received on the Commerce May 24 rule:
    This final rule revises the heading of ECCN 0A502 to add the phrase 
``shotguns ``parts'' and ``components,'' consisting of'' to clarify 
that the parts and components controlled under 0A502 are for shotguns 
in response to one commenter's request.
    This final rule revises the LVS paragraph in the License Exception 
section to add License Exception LVS eligibility of $500 for certain 
parts and components under ECCN 0A502. The Commerce May 24 rule 
proposed N/A for LVS for ECCN 0A502. This final rule makes this change 
to create equivalent treatment for License Exception LVS for purposes 
of ECCNs 0A501 and 0A502. Similar to LVS eligibility in ECCN 0A501, the 
LVS eligibility will include all Country Group B countries and an 
additional paragraph that identifies other parts and components that 
are eligible for LVS if the ultimate destination is Canada.
    This final rule revises the Related Controls paragraph to remove 
the phrase ``combat shotguns and'' because it is not needed as a 
modifier of fully automatic shotguns and the phrase is not used on the 
USML. This final rule also simplifies the Related Controls paragraph to 
use a single sentence to identify shotguns that are fully automatic as 
``subject to the ITAR.''
    This final rule adds a Note 1 to 0A502 to clarify that shotguns 
made in or before 1898 are considered antique shotguns. This note 
clarifies that these antique shotguns are designated as EAR99.
    Lastly, in ECCN 0A502, this final rule adds a Technical Note to 
specify the classification of shot pistols or shotguns that have had 
the shoulder stock removed and a pistol grip attached. The technical 
note specifies these are controlled by ECCN 0A502. The technical note 
also specifies that slug guns are controlled under ECCN 0A502.

New ECCN 0A504: Optical Sighting Devices and Certain Related 
Commodities

    This final rule adds new ECCN 0A504 to replace ECCN 0A987, which 
controlled optical sighting devices for firearms. This final rule 
revises the reasons for control table to state specifically that the 
Firearms Convention (FC) reason for control applies to all paragraphs 
in the ECCN except 0A504.f, which controls laser pointing devices. In 
addition, BIS adds an RS control for certain riflescopes, which are 
identified in their own paragraph in the ECCN under 0A504.i in this 
final rule. The riflescopes in this paragraph are limited to those 
``specially designed'' for use in firearms that are ``subject to the 
ITAR.'' This final rule includes an exclusion in the criteria of this 
paragraph to ensure less sensitive riflescopes that are being moved 
from ECCN 0A987 to 0A504 on the effective date of this final rule, that 
currently are not RS controlled under the EAR, will not be controlled 
under this paragraph. This final rule also adds a note to this 
paragraph (i) to specify that paragraph (a)(1) of the definition of 
``specially designed'' in Sec.  772.1 of the EAR is what is used to 
determine whether a riflescope is ``specially designed'' for purposes 
of this paragraph of ECCN 0A504.i--meaning paragraph (a)(2) and the 
paragraph (b) releases are not reviewed to make the ``specially 
designed'' determination.
    This change makes clear, consistent with BIS's existing 
interpretation, that such devices are not optical sights and are not 
subject to the FC reason for control. The new number is intended to 
make identifying items on the CCL easier by grouping similar or related 
items closer to each other.
    This final rule adopts the following additional changes to ECCN 
0A504 to respond to the comments received on the Commerce May 24 rule:
    This final rule revises the LVS paragraph in the License Exceptions 
section of ECCN 0A504 to add LVS eligibility of $500 for 0A504.g. 
Commenters requested that LVS eligibility be added for these less 
sensitive lenses and other optical elements controlled under 0A504.g. 
These commenters also requested adding LVS eligibility for consistency 
with the types of parts and components eligible for LVS under ECCN 
0A501 in the Commerce May 24 rule. BIS agrees and adds LVS eligibility 
of $500 for 0A504.g in this final rule.

New ECCN 0A505: Ammunition and Certain Related Commodities

    This final rule adds new ECCN 0A505 and imposes national security 
(NS Column 1), regional stability (RS Column 1), Firearms Convention 
(FC), United Nations (UN), and anti-terrorism (AT Column 1) controls on 
ammunition not enumerated on the USML, for firearms that will be 
classified under ECCN 0A501, and for most ``parts'' and ``components'' 
of such ammunition. Such ammunition included in this final rule are for 
small arms, in most cases, firearms of caliber not exceeding 0.50 
inches, although some ammunition for firearms of caliber up to 0.72 
inches is included. This final rule retains the CCL reasons for control 
currently found in ECCNs 0A984 and 0A986 for shotgun shells. Buckshot 
shotgun shells will be subject to the CC Column 1, FC Column 1, and UN 
reasons for control under this final rule. Other shotgun shells are 
subject to the FC, UN, and AT (North Korea only) reasons for control in 
this final rule. Only ``parts'' and ``components'' will be eligible for 
License Exception LVS. Ammunition for larger caliber weapons such as 
howitzers, artillery, cannon, mortars, and recoilless rifles will 
remain in USML Category III in this final rule. Ammunition that has 
little or no civil use or that is inherently military such as 
ammunition that is preassembled into links or belts, caseless 
ammunition, tracer ammunition, ammunition with a depleted uranium 
projectile or a projectile with a hardened tip or core and ammunition 
with an explosive projectile also remains in USML Category III. Blank 
ammunition for firearms controlled by ECCN 0A501 and not enumerated in 
Category III of the USML will be controlled for United Nations and 
anti-terrorism reasons only in this final rule.
    This final rule adds three notes to clarify the scope of ``parts'' 
and ``components'' for ammunition classified under ECCN 0A505. Note 1 
to 0A505.c clarifies the relationship between ECCNs 0A505 and 1A984 for 
shotgun shells, stating that shotgun shells that contain only chemical 
irritants are controlled under 1A984 and not 0A505. Separately, Note 2 
to 0A505.x includes an illustrative list of the controls on ``parts'' 
and ``components'' in this entry, such as Berdan and boxer primers. 
Note 3 to 0A505.x clarifies that the controls in ECCN 0A505 include 
``parts'' and ``components'' that are common to ammunition and ordnance 
described in this entry and to those enumerated in USML Category III.

[[Page 4161]]

    This final rule adopts the following additional changes to ECCN 
0A505 to respond to the comments received on the Commerce May 24 rule:
    This final rule revises the LVS paragraph in the License Exceptions 
section of ECCN 0A505 to increase the LVS eligibility from $100 to 
$500. The Commerce May 24 rule had proposed $100, but commenters noted 
that the cost of these parts and components would undermine the 
usefulness of LVS eligibility if the $100 limitation was maintained. 
Some commenters provided detailed price lists to support their position 
that $100 of LVS eligibility would be of limited usefulness. BIS took 
this into account and in this final rule increases the LVS eligibility 
to $500 for ECCN 0A505.x. As a conforming change, because this final 
rule moves ECCN 0A018.b to 0A505, this final rule adds grandfathering 
provisions to retain LVS eligibility of $3,000 for any commodity that 
was classified under 0A018.b prior the effective date of this final 
rule.
    This final rule revises ECCN 0A505.a to add the phrase ``or USML 
Category I'' to clarify that ammunition for firearms controlled under 
USML Category I is also controlled under 0A501.a, provided the 
ammunition is not otherwise excluded by the control parameters in 
0A501.a, i.e., being enumerated in 0A505.b, .c, .d, or in USML Category 
III.
    This final rule adds a Note 4 to 0A505 to specify that certain 
types of ammunition (i.e., Lead shot smaller than No. 4 Buckshot, empty 
and unprimed shotgun shells, shotgun wads, smokeless gunpowder, `Dummy 
rounds' and blank rounds (unless linked or belted)), not incorporating 
a lethal or non-lethal projectile(s) are designated EAR99. This final 
rule also defines the terms `dummy round or drill round.' The new note 
clarifies that these rounds are completely inert--meaning they contain 
no primer, propellant, or explosive charge. The note specifies that 
these types of rounds are typically used to check weapon function and 
for crew training.

New ECCN 0A602: Guns and Armament

    This final rule adds new ECCN 0A602 and imposes national security 
(NS Column 1), regional stability (RS Column 1), United Nations (UN) 
and anti-terrorism (AT Column 1) controls on guns and armament 
manufactured between 1890 and 1919 and for military flame throwers with 
an effective range less than 20 meters. It imposes those same reasons 
for control on parts and components for those commodities and for 
defense articles in USML Category II if such parts or components are 
not specified elsewhere on the CCL or USML. Note 3 to 0A602 confirms 
that black powder guns and armament manufactured in or prior to 1890 
and replicas thereof designed for use with black powder propellants are 
designated EAR99. The guns controlled in this ECCN are between 99 and 
128 years old. The parts, components, accessories, and attachments 
controlled in this ECCN include some that are for modern artillery. 
Modern artillery remains on the USML, along with the most sensitive 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' for 
these USML items. This final rule adds a note to clarify that 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
specified in USML subcategory II(j) are not subject to the EAR. The 
USML Order of Review and CCL Order of Review already provide guidance 
for making such a jurisdictional and classification determination, but 
to highlight that these ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' are not classified under paragraph .x of 0A602, this 
final rule adds a note.
    This final rule adopts the following additional changes to ECCN 
0A602 to respond to the comments received on the Commerce May 24 rule:
    This final rule revises the Related Controls paragraph of ECCN 
0A602 to add a Related Controls paragraph (3). This new Related 
Controls paragraph provides a cross reference to ECCN 0A606 for engines 
that are ``specially designed'' for a self-propelled gun or howitzer 
subject to control under 0A606.a or USML Category VII. The Department 
of State final rule includes a similar cross reference for purposes of 
the USML and commenters requested the same type of note or related 
control pointer be added to the EAR. The Department agrees and adds 
Related Controls paragraph (3). As a conforming change, this final rule 
redesignates Note 1 to 0A602 and Note 2 to 0A602 as Notes 2 and 3, 
respectively.

New ECCN 0B501: Test, Inspection, and Production Equipment for Firearms

    This final rule adds new ECCN 0B501 to cover ``Test, inspection, 
and production `equipment' and related commodities for the 
`development' or `production' of commodities enumerated or otherwise 
described in ECCN 0A501 or USML Category I.'' This new ECCN applies the 
national security (NS Column 1), regional stability (RS Column 1), 
United Nations (UN), and anti-terrorism (AT Column 1) reasons for 
control to four specific types of machinery and to one class of items 
as proposed in the Commerce May 24 rule. The four specific types of 
machinery are: small arms chambering machines, small arms deep hole 
drilling machines and drills therefor, small arms rifling machines, and 
small arms spill boring machines. The class of items covers dies, 
fixtures, and other tooling ``specially designed'' for the 
``production'' of items in the State Department final rule for USML 
Category I or ECCN 0A501. In addition, as described below, this final 
rule also expands the scope of 0B501.e to include all production 
equipment ``specially designed'' for USML Category I items.
    The NS and RS reasons for control do not apply to equipment for the 
``development'' or ``production'' of commodities in ECCN 0A501.y 
because those reasons for control do not apply to the commodities in 
ECCN 0A501.y themselves.
    The first four specific items noted above were listed in paragraphs 
.o, .p, .q, and .r of ECCN 2B018 prior to the effective date of this 
final rule, and are being listed in paragraphs .a, .b, .c, and .d of 
ECCN 0B501 in this final rule. In addition, the class of items in new 
0B501 that was included within ECCN 2B018, paragraph .n (jigs and 
fixtures and other metal-working implements or ``accessories'' of the 
kinds exclusively designed for use in the manufacture of firearms, 
ordnance, and other stores and appliances for land, sea or aerial 
warfare) prior to the effective date of this final rule, will, if 
applicable to firearms controlled in 0A501, be subsumed in paragraph 
.e. Jigs, fixtures, and metal working implements currently in 2B018 
that are applicable to larger guns will be controlled in ECCN 0B602 in 
this final rule and are discussed below.
    Moving these items from 2B018 to 0B501 in this final rule retains 
the national security (NS Column 1), anti-terrorism (AT Column 1), and 
United Nations (UN) reasons for control and raises the regional 
stability (RS) reason for control from RS Column 2 to RS Column 1. This 
causes no change in destination-based license requirements, but allows 
consideration of whether the export or reexport could contribute to 
instability in any region, not just the region to which the item is 
exported or reexported in considering whether to approve a license.
    This final rule adopts the following additional changes to ECCN 
0B501 to respond to the comments received on the Commerce May 24 rule:
    This final rule expands ECCN 0B501.e to include all production 
equipment ``specially designed'' for USML Category I items. This final 
rule adds the term production equipment to the beginning

[[Page 4162]]

of the control text of ECCN 0B501.e and revises the phrase ``dies, 
fixtures, and other tooling'' included in the Commerce May 24 rule to 
``including dies, fixtures, and other tooling'' to indicate that these 
items are illustrative and that other types of production equipment 
that meet the control parameters are also controlled under ECCN 0B501.

New ECCN 0B505: Test, Inspection, and Production Equipment for 
Ammunition

    This final rule adds new ECCN 0B505 to impose national security (NS 
Column 1), regional stability (RS Column 1), United Nations (UN), and 
anti-terrorism (AT Column 1) controls on tooling, templates, jigs, 
mandrels, molds, dies, fixtures, alignment mechanisms, and test 
equipment, not enumerated in USML Category III, and ``specially 
designed'' ``parts'' and ``components'' therefor, that are ``specially 
designed'' for the ``production'' of ammunition other than for the 
ammunition specified in 0A505.b, .c, or .d (certain shotgun shells with 
buckshot and without buckshot and certain blank ammunition). In 
addition, as described below, this final rule also expands the scope of 
0B505.a to include all production equipment ``specially designed'' for 
USML Category III items. Equipment for manufacturing shotgun shells 
that do not contain buckshot will be controlled for the AT (North Korea 
only) and UN reasons for control, which are the reasons for control 
that applied to this equipment in ECCN 0B986 prior to this final rule. 
ECCN 0B505 in this final rule does not include equipment for the hand 
loading of cartridges and shotgun shells, so this final rule specifies 
this in the heading.
    This final rule adopts the following additional changes to ECCN 
0B505 to respond to the comments received on the Commerce May 24 rule:
    This final rule expands ECCN 0B505.a to include all production 
equipment ``specially designed'' for USML Category III items. This 
final rule adds the term production equipment to the beginning of the 
control text of ECCN 0B505.a and revises the phrase ``tooling, 
templates, jigs, mandrels, molds, dies, fixtures, alignment mechanisms, 
and test equipment'' included in the Commerce May 24 rule to 
``including tooling, templates, jigs, mandrels, molds, dies, fixtures, 
alignment mechanisms, and test equipment'' to indicate that these items 
are illustrative and other types of production equipment that meet the 
control parameters are also controlled under ECCN 0B505.

Revisions to Eight ECCNs

    To conform to new Federal Register Drafting Handbook requirements, 
the amendatory instructions in this final rule sets forth the entire 
text of eight ECCNs to be revised. BIS did not receive any comments on 
the proposed revisions to the following six ECCNs 0E982, 1A984, 2B004, 
2B018, 2D018, and 7A611 in the Commerce May 24 rule, so this final rule 
revises those ECCNs as proposed. See the Commerce May 24 rule for 
additional background on these revisions.
    To help the public understand what specific parts of ECCN 0A018 
will be different as a result of the changes in this final rule, the 
narrative below describes the amendment in detail, including a 
conforming change made to ECCN 0A988.

Revision to ECCN 0A018, and Conforming Change to ECCN 0A988

    With the removal of ECCN 0A984 and the addition of 0A502 described 
above, the Commerce May 24 rule proposed to make the conforming change 
of removing and reserving 0A018.c since all the items classified in 
0A018.c would be classified under other entries on the CCL once a final 
rule was published.
    This final rule adopts the following additional changes to ECCN 
0A018 to respond to the comments received on the Commerce May 24 rule:
    This final rule still revises ECCN 0A018, but instead of retaining 
the commodities under 0A018.b as was proposed in the Commerce May 24 
rule, these commodities are being moved to ECCN 0A505. As a conforming 
change, this final rule replaces the control text of ECCN 0A018 with a 
statement referring readers to ECCN 0A505.
    This final rule adopts the following additional changes to ECCN 
0A988 to respond to the comments received on the Commerce May 24 rule:
    This final rule as a conforming change revises the heading of ECCN 
0A988 to remove an outdated reference to 0A018.d. ECCN 0A018.d had been 
previously removed and reserved, but the cross reference in 0A988 was 
not updated. This final rule makes that correction.

Removal of Nine ECCNs

    The Commerce May 24 rule proposed removing nine ECCNs. BIS did not 
receive any comments on proposed removals of ECCNs 0A918, 0A984, 0A985, 
0A986, 0A987, 0B986, 0E918, 0E984, and 0E987 in the Commerce May 24 
rule, so this final rule removes those ECCNs as proposed. See the 
Commerce May 24 rule for additional background on these removals.

Revision of ``Published''

    This final rule adopts the following changes to part 734, and one 
conforming change to part 732, to respond to the comments received on 
the Commerce May 24 rule:
    Specifically, this final rule adds a paragraph (c) to Sec.  734.7 
stating that ``software'' or ``technology'' for the production of a 
firearm, or firearm frame or receiver, controlled under ECCN 0A501, 
that is made available by posting on the internet in an electronic 
format and that may be directly loaded without further modification by 
the machine operator into a computer numerically controlled machine 
tool, additive manufacturing equipment, or any other equipment that 
makes use of the ``software'' or ``technology'' to produce the firearm 
frame or receiver or complete firearm, remains ``subject to the EAR.'' 
Also in Sec.  734.7, this final rule as a conforming change revises the 
paragraph (a) introductory text to add a reference to new paragraph (c) 
for the exclusions that apply to paragraph (a) for what is considered 
``published.'' In Sec.  732.2 (Steps regarding scope of the EAR), under 
the paragraph (b) introductory text for step 2 for publicly available 
technology and software, this final rule also adds a reference to Sec.  
734.7(c) to specify such ``software'' or ``technology'' for the 
production of a firearm, or firearm frame or receiver, controlled under 
ECCN 0A501, as referenced in Sec.  734.7(c)), is ``subject to the 
EAR.''

Conforming Change to General Order No. 5

    BIS does not make any additional changes in this final rule to what 
was proposed in the Commerce May 24 rule as a result of the comments 
received, so these changes are adopted as proposed. This final rule 
amends General Order No. 5, paragraph (e)(3) (Prior commodity 
jurisdiction determinations), in Supplement No. 1 to part 736, to add a 
reference in two places to the new 0x5zz ECCNs that are being created 
by this rule. This change to paragraph (e)(3) is a conforming change 
and is needed because paragraph (e)(3) now only references the ``600 
series'' and 9x515 ECCNs. 0x5zz ECCNs will include new ECCNs 0A501, 
0A502, 0A504, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E502, and 
0E505.

[[Page 4163]]

Revisions to Regional Stability Licensing Policy for Firearms and 
Ammunition

    BIS does not make any additional changes in this final rule to what 
was proposed in the Commerce May 24 rule as a result of the comments 
received, so these changes are adopted as proposed. This final rule 
applies the regional stability licensing policy set forth in Sec.  
742.6(b)(1)(i) of the EAR to the items controlled for regional 
stability reasons in ECCNs 0A501, 0A504, 0A505, 0B501, 0B505, 0D501, 
0D505, 0E501, 0E504, and 0E505. That policy, which also applies to 
``600 series'' and 9x515 items is case-by-case review ``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.'' This final rule also revises the regional stability licensing 
policy set forth in paragraph (b)(1)(i) that is specific to the 
People's Republic of China for 9x515 items. This final rule adds ECCNs 
0A501, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 to 
this sentence to specify that these firearms and related items are to 
be subject to a policy of denial when destined to the People's Republic 
of China or a country listed in Country Group E:1. Lastly, this final 
rule adds a sentence to the end of paragraph (b)(1)(i) to make it 
explicit that applications for exports and reexports of ECCN 0A501, 
0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 items are 
subject to a policy of denial when there is reason to believe the 
transaction involves certain parties of concern, such as criminal 
organizations, rebel groups, street gangs, or other similar groups or 
individuals, that may be disruptive to regional stability.

Availability of License Exceptions

    Many of the items in the new ``600 series'' ECCNs generally will be 
eligible for the same license exceptions and subject to the same 
restrictions on use of license exceptions as other ``600 series'' ECCNs 
in this final rule. For the ECCNs on the CCL prior to the effective 
date of this final rule that are being renumbered and placed in closer 
proximity to the firearms-related items that are being removed from the 
USML and added to the CCL, these existing firearms-related items will 
continue to be eligible for the same EAR license exceptions as they 
were prior to the effective date of this final rule, unless otherwise 
restricted under Sec.  740.2, if the requirements of the license 
exceptions are met.

Restrictions on All License Exceptions

    This final rule also makes the following additional changes to part 
740 to respond to the comments received on the Commerce May 24 rule by 
adding two new general restrictions.
    In Sec.  740.2 (Restriction on all license exceptions), this final 
rule adds two additional restrictions for when license exceptions may 
not be used. This final rule adds new paragraph (a)(21) to restrict the 
use of license exceptions, except for License Exception GOV under Sec.  
740.11(b)(2)(ii) for the reexport or transfer (in-country) of certain 
firearms classified under ECCNs 0A501 or 0A502. The restriction on the 
use of license exceptions applies if a part or component that is not 
``subject to the ITAR,'' but would otherwise meet the criteria in USML 
Category I(h)(2) is incorporated into the firearm or is to be 
reexported or transferred (in-country) with the firearm with 
``knowledge'' the part or component will be subsequently incorporated 
into the firearm. Because these parts or components that would 
otherwise meet the criteria in USML Category I(h)(2) could be used for 
conversion of a semi-automatic firearm to a fully automatic firearm, 
this final rule excludes those firearms from license exception 
eligibility.
    In Sec.  740.2 this final rule also adds a new paragraph (a)(22) to 
restrict the use of license exceptions for the export, reexport, or 
transfer (in-country) of any item classified under a 0x5zz ECCN when a 
party to the transaction is designated on the Department of the 
Treasury, Office of Foreign Assets Control (OFAC), Specially Designated 
Nationals and Blocked Persons (SDN) list under the designation [SDNT], 
or under the designation [SDNTK]. OFAC makes SDNT designations pursuant 
to the Narcotics Trafficking Sanctions Regulations, 31 CFR part 536, 
and SDNTK designations are made, pursuant to the Foreign Narcotics 
Kingpin Sanctions Regulations, 31 CFR part 598. This restriction on the 
use of license exceptions for these 0x5zz items will ensure that such 
parties designated on the SDN list will not be able to receive these 
0x5zz items without a BIS license.

License Exception: Shipments of Limited Value (LVS)

    Under this final rule, complete firearms controlled under ECCN 
0A501 are not eligible for License Exception LVS, 15 CFR 740.3. 
Firearms ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' controlled under ECCN 0A501, other than receivers 
(frames), and ``complete breech mechanisms,'' including castings, 
forgings or stampings thereof, are eligible for License Exception LVS, 
with a limit of $500 on net value per shipment. In addition, receivers 
(frames), and ``complete breech mechanisms,'' including castings, 
forgings or stampings thereof, are eligible for License Exception LVS 
if the ultimate destination is Canada. This final rule states these 
limits in the License Exceptions paragraph of ECCN 0A501, and no 
revisions to the text of the license exception itself are needed to 
implement them. BIS believes that this provision is generally 
consistent with the license exemption for limited value shipments of 
firearms formerly found in ITAR (22 CFR 123.17(a)) (removed and 
reserved by the companion rule). This LVS eligibility included in this 
final rule is less restrictive than the former ITAR provision in two 
respects. First, the value limit per shipment will be $500 compared to 
$100 in the ITAR. Second, the LVS eligibility in the final rule allows 
exports of receivers and ``complete breech mechanisms'' to Canada 
whereas Sec.  123.17(a) did not. However, the $500 LVS limit is based 
on the actual selling price or fair market value, whereas the ITAR $100 
limit is based on ``wholesale'' value. In addition, with respect to 
Canada, an LVS limit of $500 per shipment is needed to comply with the 
Section 517 of the Commerce, Justice, Science, and Related Agencies 
Appropriations Act of 2015, which prohibits expending any appropriated 
funds to require licenses for the export of certain non-automatic 
firearms parts, components, accessories and attachments to Canada when 
valued at under $500.
    Guns and armament and related items controlled under ECCN 0A602 are 
eligible for License Exception LVS, with a limit of $500 net value per 
shipment in this final rule.
    Ammunition controlled under ECCN 0A505 are eligible for License 
Exception LVS; however, ammunition parts and components will be 
eligible with a limit of $500 (Commerce May 24 rule proposed $100, but 
as described below in the changes to ECCN 0A505, this final rule 
increases the limit of $500) net value per shipment in this final rule.
    Test, inspection, and production equipment controlled under ECCNs 
0B501, 0B505, and 0B602 for firearms, guns and armament, and 
ammunition/ordnance are eligible for License Exception LVS with a limit 
of $3,000 net value per shipment, which is consistent with LVS 
eligibility for most 600 series ECCNs in this final rule.

[[Page 4164]]

License Exception: Temporary Imports, Exports, Reexports, and Transfers 
(In-Country) (TMP)

    This final rule amends Sec.  740.9 to state that License Exception 
TMP is not available to export or reexport the items that are the 
subject of this rule to destinations in Country Group D:5 (See 
Supplement No. 1 to part 740), or to Russia (Russian Federation). 
License Exception TMP is also not available to export or reexport some 
firearms and ammunition shipped from or manufactured in Russia (Russian 
Federation), Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, 
Ukraine, or Uzbekistan. In addition, this final rule will prohibit the 
use of License Exception TMP to export or reexport any item controlled 
by ECCN 0A501 and any shotgun with a barrel length less than 18 inches 
controlled under ECCN 0A502 that was shipped from or manufactured in 
Country Group D:5. This final rule also prohibits use of License 
Exception TMP to export or reexport any item controlled by ECCN 0A501 
that is shipped from or manufactured in Russia, Georgia, Kazakhstan, 
Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan, except for 
any firearm model controlled by 0A501 that is also excluded under Annex 
A in Supplement No. 4 to part 740 (the prohibition will not apply to 
such firearms;); and any shotgun with a barrel length less than 18 
inches controlled under 0A502 that was shipped from or manufactured in 
Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, 
Ukraine, or Uzbekistan. These prohibitions will apply to temporary 
exports of firearms from the United States, and the export of firearms 
temporarily in the United States. This final rule for consistency with 
the ITAR requirements for exports of firearms to Georgia, Kazakhstan, 
Kyrgyzstan, Moldova, Turkmenistan, Ukraine, and Uzbekistan, removes the 
restriction included in the Commerce May 24 rule in paragraph 
(b)(5)(iii) that the firearms may not ultimately be destined to one of 
these seven countries from the restriction in paragraph (b)(5)(iii), 
but retains the restriction for Russia. This final rule makes one 
correction in Annex A in Supplement No. 4 to part 740 for the rifle 
``VEPR Pioner'' under paragraph (b)(90) to correctly spell it as ``VEPR 
Pioneer.''
    This final rule limits temporary exports of firearms controlled 
under ECCN 0A501 and any shotgun with a barrel length less than 18 
inches controlled under ECCN 0A502 pursuant to License Exception TMP to 
exhibition and demonstration (Sec.  740.9(a)(5) of the EAR) and 
inspection, test, calibration, and repair (Sec.  740.9(a)(6) of the 
EAR). Consistent with the ITAR requirements previously applicable to 
temporary exports of the firearms covered by this rule (see 22 CFR 
123.17(c), 123.22), exporters will continue to be required to file EEI 
in AES for transactions involving such firearms that are authorized 
pursuant to License Exception TMP (See Sec.  758.1(a)(10) of the EAR).
    This final rule authorizes the use of License Exception TMP for the 
export of ECCN 0A501 firearms temporarily in the United States for a 
period of not more than one year subject to the requirement that the 
firearms not be imported from or ultimately destined for certain 
proscribed or restricted countries. Certain information as described in 
the regulatory text will also be collected by CBP on behalf of BIS 
under existing or new Commerce paperwork collections. This final rule 
also makes eligibility to export under License Exception TMP for ECCN 
0A501.a or .b or shotguns with a barrel length less than 18 inches 
controlled in ECCN 0A502 subject to the following conditions:
    At the time of entry for a temporary import, the temporary importer 
is required to provide the required statement to CBP, as specified in 
paragraph (b)(5)(iv)(A).
    The temporary importer is required to include on the invoice or 
other appropriate import-related documentation (or electronic 
equivalents) provided to CBP a complete list and description of the 
0A501 firearms being imported, including their serial numbers, model, 
make, caliber, quantity, and U.S. dollar value, as specified in 
paragraph (b)(5)(iv)(B).
    If the firearms are temporarily imported for a trade show, 
exhibition, demonstration, or testing, the temporary importer must 
provide to CBP the relevant invitation or registration documentation 
for the event and an accompanying letter that details the arrangements 
to maintain effective control of the firearms while they are in the 
United States, as specified in paragraph (b)(5)(iv)(C).
    At the time of export, the temporary importer or its agent as 
specified in paragraph (b)(5)(v) are required to provide the temporary 
import documentation (i.e., the invoice used at the time of entry for 
the temporary importation or other appropriate temporary import-related 
documentation (or electronic equivalents)) related to paragraph 
(b)(5)(iv)(B) to CBP. This information will be used by CBP to confirm 
that such firearms were in fact temporarily imported under the EAR for 
subsequent export under License Exception TMP.
    This final rule adds a note to License Exception TMP to direct 
temporary importers and exporters to contact CBP at the port of import 
or export for the proper procedures to provide any data or 
documentation required by BIS.

License Exception: Governments, International Organizations, 
International Inspections Under the Chemical Weapons Convention, and 
the International Space Station (GOV)

    This final rule revises Sec.  740.11 to limit the applicability of 
License Exception GOV for firearms, ``parts'' and ``components'' 
controlled by ECCN 0A501 and ammunition controlled by 0A505 to exports, 
reexports, and transfers for official use by U.S government agencies 
and official and personal use by U.S. Government employees (and the 
immediate families and household employees of those government 
employees) (Sec.  740.11(b)(2)(i) and (ii) of the EAR). This 
authorization under License Exception GOV treats 0A501 firearms in the 
same manner that other items that are subject to the EAR may be 
exported to U.S. Government employees under License Exception GOV. It 
does not impose certain restrictions that are imposed by the former 
ITAR license exemption (22 CFR 123.18) (removed and reserved by 
companion rule) that authorized shipments consigned to and for the use 
of servicemen's clubs, and for service members or civilian employees if 
the firearms are for personal use and the shipment is accompanied by a 
written authorization from the commanding officer concerned. See the 
Commerce May 24 rule for additional background. License Exception GOV 
authorizes non-automatic and semi-automatic firearms and related 
``parts'' and ``components.''
    All other items that are the subject of this final rule will be 
subject to the limits on use of License Exception GOV that apply to 600 
series items generally, i.e., Sec.  740.11(b)--to, for, or on behalf of 
the U.S. Government (including contractors, government employees, their 
families and household employees) or Sec.  740.11(c) to a government in 
Country Group A:1 cooperating governments or an agency of NATO. 
However, this rule will add some additional restrictions for E:1 and 
E:2 countries. This final rule will exclude the use of License 
Exception GOV for any item listed in a 0x5zz ECCN for E:1 countries, 
unless authorized under paragraph (b)(2)(i) or

[[Page 4165]]

(ii) when the items are solely for U.S. Government official use. In 
addition, to better ensure compliance with section 1754(c) of the ECRA 
and address concerns with certain end users and uses in Country Group 
E:1 and E:2 countries, this final rule adds a new Note 2 to paragraph 
(b)(2), which restricts the use of License Exception GOV for E:1 and 
E:2 countries for multilaterally controlled items and anti-terrorism 
(AT) controlled items when destined to certain end users or end uses of 
concern.
    This final rule also makes the following additional change to 
License Exception GOV to respond to the comments received on the 
Commerce May 24 rule:
    In Sec.  740.11 of License Exception GOV, this final rule revises 
Note 2 to paragraph (b)(2) to include illustrative examples of other 
sensitive end-users. This final rule adds the parenthetical phrase 
``(e.g., contractors or other governmental parties performing functions 
on behalf of military, police, or intelligence entities)'' after the 
phrase ``or other sensitive end-users'' to provide greater clarity on 
the other end-users that are excluded.

License Exception: Baggage (BAG)

    This final rule revises License Exception BAG, Sec.  740.14, to 
allow United States citizens and permanent resident aliens leaving the 
United States temporarily to take up to three firearms controlled by 
proposed ECCN 0A501 and up to 1,000 rounds of ammunition for such 
firearms controlled under ECCN 0A505.a for personal use while abroad. 
This change to License Exception BAG is made to be consistent with 
former 22 CFR 123.17(c) (removed and reserved by companion rule), which 
authorized U.S. persons to take up to three non-automatic firearms and 
up to 1,000 cartridges therefor abroad for personal use. This amendment 
to License Exception BAG applies to both non-automatic and semi-
automatic firearms.
    Travelers leaving the United States temporarily are required to 
declare the 0A501 and 0A505 items to a CBP officer prior to departure 
from the United States and present the firearms, ``parts,'' 
``components,'' ``accessories,'' ``attachments,'' and ammunition they 
are exporting to the CBP officer for inspection, confirming that the 
authority for the export is License Exception BAG, that the exporter is 
compliant with its terms. Should exporters desire to contact CBP prior 
to departure, contact information and a list of U.S. air, land and sea 
ports of entry can be found at: https://www.cbp.gov/contact/ports.
    This final rule also revises License Exception BAG to allow 
nonresident aliens leaving the United States to take firearms, 
``accessories,'' ``attachments,'' ``components,'' ``parts,'' and 
ammunition controlled by ECCN 0A501 or 0A505 that they lawfully brought 
into the United States. This change is consistent with former 22 CFR 
123.17(d) (removed and reserved by companion rule), which authorized 
foreign persons leaving the United States to take firearms and 
ammunition controlled under Category I(a) of the USML (both non-
automatic and semi-automatic) that they lawfully brought into the 
United States. This final rule does not adopt any changes to the 
availability of License Exception BAG for shotguns and shotgun shells 
authorized under paragraph (e)(1) or (2).
    As a clarification to License Exception BAG, this final rule adds 
one sentence to the introductory text of paragraph (b)(4) to highlight 
the special provisions that apply in paragraph (e) for firearms and 
ammunition and in paragraph (h) for personal protective equipment under 
ECCN 1A613.c or .d. This one sentence does not change the existing 
requirement and has been included to assist the public in better 
identifying these special provisions.
    Consistent with the ITAR requirements previously applicable to 
temporary exports of the firearms and associated ammunition covered by 
the May 24 proposed rule, BIS proposed in the Commerce May 24 rule to 
modify Sec.  758.1 of the EAR to make clear that exporters would 
continue to be required to file EEI in AES for transactions involving 
such firearms and associated ammunition that are otherwise authorized 
pursuant to License Exception BAG. However, for the reasons described 
above in the description of the comments and BIS responses, this final 
rule adopts an alternative approach with the addition of the new Sec.  
758.11 described immediately below.
    This final rule makes the following additional changes in response 
to the public comments received on the Commerce May 24 rule:
    As described above, this final rule removes the EEI filing 
requirement in AES as set forth in Sec.  758.1(b)(9) for firearms 
authorized under License Exception BAG.
    In response to public comments as described above, this final rule 
instead adds a new Sec.  758.11 (Export clearance requirements for 
firearms and related items) and incorporates a requirement to use the 
Department of Homeland Security, CBP Form 4457, Certificate of 
Registration for Personal Effects Taken Abroad) (OMB Control Number 
1651-0010) for all exports of commodities controlled under ECCNs 
0A501.a or .b, shotguns with a barrel length less than 18 inches 
controlled under ECCN 0A502, or ammunition controlled under ECCN 0A505 
except for .c, regardless of value or destination, including exports to 
Canada, that are authorized under License Exception BAG, as set forth 
in Sec.  740.14. Section 758.11 includes four paragraphs: Paragraph (a) 
(Scope) specifies when these export clearance requirements apply; 
paragraph (b) (Required form) identifies the required form that needs 
to be used in connection with these exports authorized under License 
Exception BAG, including paragraph (b)(1) that includes a website for 
where to find the form, and paragraph (b)(2) that specifies the 
``description of articles'' for firearms to be included on the CBP Form 
4457; paragraph (c) provides a link for where to find additional 
information on the CBP Form 4457; and paragraph (d) (Return of items 
exported pursuant to this section) specifies the requirements for the 
return of items exported under License Exception BAG when the export 
clearance requirements in Sec.  758.11 apply.

License Exception: Servicing and Replacement of Parts and Equipment 
(RPL)

    This final rule also adopts the following changes to License 
Exception RPL to respond to the comments received on the Commerce May 
24 rule, that requested License Exception RPL be included as a valid 
purpose for a temporary import under Sec.  758.10. As described above, 
BIS agreed to include License Exception RPL in Sec.  758.10, and these 
changes are described below.
    In Sec.  740.10(b) (Servicing and replacement of parts and 
equipment), this final rule makes needed conforming changes for the 
addition of License Exception RPL to Sec.  758.10 and to include 
similar changes as were made to License Exception TMP under Sec.  
740.9(b)(5) in the Commerce May 24 rule. This final rule adds one 
sentence to the end of the introductory text of Sec.  740.10(b)(1) to 
specify that that additional requirements in new paragraph (b)(4) must 
be met in order to use License Exception RPL to authorize under 
paragraph (b)(2) or (3) the export of firearms controlled by ECCN 
0A501.a or .b, or shotguns with a barrel length less than 18 inches 
controlled in ECCN 0A502 temporarily in the United State for servicing 
and replacement. This final rule adds new paragraph (b)(4) (Exports

[[Page 4166]]

of firearms and certain shotguns temporarily in the United States for 
servicing and replacement). Under the introductory text of paragraph 
(b)(4), this final rule imposes a requirement that the firearms and 
certain shotguns must be temporarily in the United States for servicing 
or replacement for a period not exceeding one year or the time it takes 
to service or replace the commodity, whichever is shorter in order to 
use License Exception RPL to authorize the export. This final rule adds 
paragraphs (b)(4)(i) and (ii) to impose restrictions for firearms 
shipped from or manufactured in Russia, Georgia, Kazakhstan, 
Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan, except for 
any firearm model controlled by 0A501 that is specified under Annex A 
in Supplement No. 4 to part 740, to impose the same types of 
restrictions and impose the same type of information requirements for 
providing information to CBP as this final rule includes for License 
Exception TMP under paragraph (b)(5).

License Exception: Additional Permissive Reexports (APR)

    This final rule also adopts the following change to License 
Exception APR to respond to the comments received on the Commerce May 
24 rule:
    In Sec.  740.16 of License Exception APR, this final rule adds 
commodities classified under a 0x5zz ECCN to the list of commodities 
excluded under paragraph (a) of License Exception APR. This final rule 
also adds a new paragraph (b)(2)(vi) to exclude commodities classified 
under a 0x5zz ECCN under paragraph (b) of License Exception APR. The 
Commerce May 24 rule did not propose these exclusions from License 
Exception APR, but BIS identified these two paragraphs of License 
Exception APR as two authorizations that were not intended to be 
available under the Commerce May 24 rule, but based on the stated 
criteria prior to the effective date of this final rule would have been 
available. Therefore, this final rule makes these changes to ensure the 
authorizations available for reexports and transfers (in-country) will 
be equivalent to those available for exports.

License Exception STA

    BIS did not receive any comments on the proposed changes to License 
Exception STA, Sec.  740.20, in the Commerce May 24 rule, so this final 
rule adopts those changes as proposed. This final rule revises the 
regulations at Sec.  740.20 to make firearms controlled under ECCN 
0A501 and most ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' controlled under ECCN 0A501 ineligible for License 
Exception STA. Only those ``parts,'' ``components,'' ``accessories,'' 
and ``attachments'' that are controlled under paragraph .x are eligible 
for export under License Exception STA. Items controlled under ECCNs 
0A502 and 0A503 are also excluded from STA eligibility.

Support Documentation for Firearms, Parts, Components, Accessories, and 
Attachments Controlled by ECCN 0A501

    BIS did not receive any comments on this proposed change to Sec.  
748.12 in the Commerce May 24 rule, so the change is published in this 
final rule as proposed. This final rule requires that for commodities 
controlled by ECCN 0A501 that are the subject of export or reexport 
transactions for which a license is required, the exporter or 
reexporter must obtain, prior to submitting an application, an import 
permit (or copy thereof) if the importing country requires such permits 
for import of firearms. That import permit is a record that must be 
kept by the exporter or reexporter as required by part 762 of the EAR. 
The purpose of this requirement is to assure foreign governments that 
their regulations concerning the importation of firearms are not 
circumvented. To implement this change, this final rule revises Sec.  
748.12 to include the commodities controlled under ECCNs 0A501 (except 
0A501.y), 0A502, 0A504 (except 0A504.f), and 0A505 (except 0A505.d) 
within the list of commodities that are subject to the requirement and 
adds a new paragraph (e) requiring that import certificates or permits 
be obtained from countries other than OAS member states if those states 
require such a certificate or permit.

Licenses for Firearms and Ammunition Will Be Limited to the Authorized 
End Use and End Users

    BIS did not receive any comments on these statements of EAR 
licensing policy in the Commerce May 24 rule but restates them here to 
assist the public. Consistent with other BIS licenses, including ``600 
series'' and 9x515 items, licenses for firearms and ammunition that 
move from the USML to the CCL are limited to the authorized end use and 
end users specified on the license and supporting documentation 
submitted as part of the license application. This means any change in 
the authorized end use or end user for a licensed transaction will 
require a BIS authorization. This existing requirement of BIS licenses 
is specified in Sec.  750.7(a) and on the boiler plate text included on 
all BIS licenses. These requirements are also applied to firearms and 
ammunition licenses. A change in end use or end user, including a 
change of authorized end use or end user within a single foreign 
country for a firearm or ammunition authorized under a BIS license, 
requires a BIS authorization. BIS does not adopt any changes in this 
final rule to these well-established and understood requirements on 
using BIS licenses. Applicants for firearms and ammunition licenses are 
also advised that BIS continues to exercise its authority, as specified 
in Sec.  748.11 in the Note 2 to paragraph (a), on a case-by-case basis 
to require a Statement by Ultimate Consignee and Purchaser as 
warranted.
    The exporter, reexporter, or transferor using a BIS license, 
including for firearms and ammunition licenses, is also required, 
pursuant to Sec.  750.7(a), to inform the other parties identified on 
the license, such as the ultimate consignees and end users of the 
license's scope and of the specific conditions applicable to them. As 
an additional safeguard for firearms and ammunition licenses, BIS will 
include, when warranted, a license condition requiring the exporter, 
reexporter, or transferor to obtain from the other parties identified 
on the license a written confirmation that those other parties have 
received and agree to the terms and conditions of the license. For 
example, the condition may state ``Prior to using this license, the 
exporter (reexporter or transferor) and other parties to the license 
must agree to the conditions in writing and the exporter (reexporter or 
transferor) must keep this on file with their other records.'' The 
documents described in this paragraph are required to be kept for EAR 
recordkeeping purposes under part 762 of the EAR.

Conventional Arms Reporting for Certain Exports of ECCN 0A501.a and .b 
Commodities

    In Sec.  743.4 (Conventional arms reporting), this final rule 
revises paragraphs (c)(1)(i) and (c)(2)(i) to add ECCN 0A501.a and .b 
as commodities that require Wassenaar Arrangement reporting and United 
Nations reporting under this conventional arms reporting section of the 
EAR. This requirement assists the U.S. Government to meet its 
multilateral commitments for the special reporting requirements for 
exports of certain items listed on the WAML and the United Nations 
Register of Conventional Arms when these items are authorized for 
export under License Exceptions LVS, TMP, RPL, STA, or GOV (see part 
740 of the EAR) or the

[[Page 4167]]

Validated End-User authorization (see Sec.  748.15 of the EAR) and for 
United Nations reporting. License Exceptions LVS and STA are identified 
in Sec.  743.4(b)(1), but because ECCN 0A501.a and .b commodities are 
not eligible for those two license exceptions, the reporting 
requirements under Sec.  743.4(c)(1)(i) and (c)(2)(i) are limited to 
exports authorized License Exceptions TMP, GOV, and RPL or the 
Validated End-User authorization. This final rule also adds contact 
information for these reports.
    This final rule also makes the following additional change to Sec.  
743.4 to respond to the comments received on the Commerce May 24 rule:
    Commenters requested that BIS use information required to be 
submitted in the EEI filing in AES to pull the conventional arms 
reporting data directly in order to eliminate the need for exporters to 
submit separate reports to BIS. BIS agreed and this final rule revises 
three paragraphs in Sec.  743.4 to adopt an alternative method for BIS 
to receive the information that is required for conventional arms 
reporting. This rule revises paragraph (a) to add four sentences at the 
end of the paragraph. These four sentences specify that if the exporter 
follows the requirements specified in this section for the alternative 
submission method described in new paragraph (h) (Alternative 
submission method), that separate reporting does not need to be made to 
BIS for purposes of Sec.  743.4. Because of the EEI filing requirements 
in AES in new Sec.  758.1(g)(4)(ii) for the firearms that require 
conventional arms reporting, all conventional arms reporting 
requirements for firearms should be able to be met by using the 
alternative submission method. Under paragraph (b) (Requirements), this 
final rule adds a reference to meeting the reporting requirement by 
using the alternative submission method in new paragraph (h).
    This final rule adds paragraph (h) that describes the requirements 
for the alternative submission method. To use the alternative reporting 
method, each time the exporter files an EEI record in AES, the exporter 
must include as the first text in the Commodity Description field in 
AES the first six characters of the ECCN number, i.e., ``0A501.a'' or 
``0A501.b.'' In addition, the exporter must document for recordkeeping 
requirements under the EAR that for purposes of the conventional arms 
reporting requirements under part 743, it has decided to use the 
alternate submission method by taking steps to identify the end item 
firearms in the EEI filing in AES that will enable the U.S. Government 
to pull the data and meet national reporting commitments to the 
Wassenaar Arrangement and the United Nations.
    As a conforming change, in Sec.  758.1 (The Electronic Export 
Enforcement (EEI) filing to the Automated Export System (AES)), this 
final rule adds a new paragraph (g)(4)(ii) (Identifying end item 
firearms by ``items'' level classification or other control descriptor 
in the EEI filing in AES). Exporters must include the six character 
ECCN classification (i.e., 0A501.a or 0A501.b), as the first text to 
appear in the Commodity description block in the EEI filing in AES. 
Exporters for shotguns controlled under 0A502 must include the phrase 
``0A502 barrel length less than 18 inches'' as the first text to appear 
in the Commodity description block in the EEI filing in AES. This 
information will be used by BIS as referenced in Sec.  743.4(h) for 
conventional arms reporting.

Changes to Export Clearance Requirements for Firearms Being Moved to 
the CCL (Part 758)

    In Sec.  758.1, this final rule adopts changes to clarify that a 
filing of EEI in AES will be required for exports of the firearms 
transferred from the USML pursuant to this rule regardless of value or 
destination, including exports to Canada. As noted above, this 
requirement applies, as was the case under the ITAR prior to the 
effective date of this final rule, for temporary exports of such items 
pursuant to License Exception TMP, but not for License Exception BAG.
    In addition, this final rule expands the data elements required as 
part of an EEI filing to AES filing for these firearms to include 
serial numbers, make, model and caliber. This requirement will ensure 
law enforcement officials are able to effectively verify that firearms 
exports are properly authorized and in conformance with all applicable 
regulations, including those associated with the temporary export and 
subsequent return of controlled firearms and unused ammunition.
    This final rule also makes the following additional changes to 
Sec.  758.1(b)(10) and (c)(1) to respond to the comments received on 
the Commerce May 24 rule regarding the concerns for individuals having 
to file EEI in AES:
    In Sec.  758.1, this final rule revises new paragraph (b)(10) that 
was included in the Commerce May 24 rule, but adds it as new paragraph 
(b)(9). This final rule excludes exports authorized under License 
Exception BAG from the EEI filing requirement in AES. As a conforming 
change, this final rule revises paragraph (c)(1) to eliminate the 
restriction from the exemption for License Exception BAG. This final 
rule makes this change because of excluding License Exception BAG from 
paragraph (b)(9) means the general exemption for not filing EEI in AES 
for these firearms authorized under License Exception BAG, should be 
available, so this final rule makes this conforming change. This final 
rule adds a new Note to paragraph (c)(1) to add a cross reference to 
the export clearance requirements that are specific to firearms 
exported under License Exception BAG.
    This final rule also makes the following additional changes to 
Sec.  758.1(g)(4) to respond to the comments received on the Commerce 
May 24 rule regarding concerns for having to include the manufacture, 
model, caliber, and serial number in the EEI filing in AES:
    In Sec.  758.1(g)(4) (Exports of Firearms and Related Items), this 
final rule adds a new paragraph (g)(4)(i) (Identifying end item 
firearms by manufacturer, model, caliber, and serial number in the EEI 
filing in AES) to narrow the requirement for when firearms must be 
identified by manufacture, model, caliber, and serial number in the EEI 
filing in AES to License Exception TMP or a BIS license that contains a 
condition requiring all or some of this information to be filed as EEI 
in AES.

Entry Clearance Requirements for Temporary Imports (Sec.  758.10)

    Temporary imports are transactions that involve both the temporary 
entry of an item into the U.S. from a foreign country and the 
subsequent export of that item from the U.S. To preserve the treatment 
of temporary import transactions for items in this rule that will 
transfer from the USML in the ITAR to become subject to the EAR, BIS 
imposes a temporary imports entry clearance requirement in this final 
rule by adding new Sec.  758.10. This new section is limited to items 
in this rule that are both ``subject to the EAR'' and on the USMIL in 
27 CFR 447.21. To allow such items to temporarily enter the U.S., this 
final rule imposes a process to collect identifying information for the 
sole purpose of tracking items being temporarily imported for 
subsequent export. BIS does not impose a license requirement for such 
imports, but this information is necessary to facilitate the export 
after a temporary import. The entry clearance requirement is an EAR 
requirement and any false representation made under the new Sec.  
758.10 will be a violation of the EAR.

[[Page 4168]]

    This final rule also makes the following additional change to Sec.  
758.10 to respond to the comments received on the Commerce May 24 rule:
    In Sec.  758.10, this final rule adds an exclusion to the entry 
clearance requirements proposed in the Commerce May 24 rule to clarify 
that firearms ``subject to the EAR'' brought into the United States by 
nonimmigrant aliens under the provisions of Department of Justice 
regulations at 27 CFR part 478 are not subject to these same entry 
clearance requirements for temporary imports. This final rule makes 
this change for consistency with License Exception BAG under paragraph 
(e) and because ATF regulations address nonimmigrant aliens temporarily 
bringing these types of firearms into the United States, so the 
requirements in Sec.  758.10 do not need to apply.
    In Sec.  758.10, this final rule clarifies the penultimate sentence 
and the last sentence of paragraph (a) by removing references to 
``permanent return'' and ``permanent import'' after items are 
temporarily exported under an EAR authorization, e.g., License 
Exception TMP or a Commerce license. This clarification is made because 
the inbound portion of a temporary export is covered by the temporary 
export authorization, so it not accurate to describe those as a 
``permanent return'' or as a ``permanent import.''
    Also in Sec.  758.10, this final rule clarifies the introductory 
text of paragraph (b) by deleting the title ``the Port Directors'' 
before U.S. Customs and Border Protection. This change is made because 
U.S. Customs and Border Protection Center Directors may also have an 
enforcement role in addition to Port Directors, so referencing U.S. 
Customs and Border Protection is sufficient. In paragraph (b)(2), this 
final rule revises the phrase ``as requested by CBP'' with the phrase 
``upon request by CBP.'' In the last sentence of paragraph (b)(2), this 
final rule removes the word ``inspection'' after the phrase 
``additional requirements,'' because the word was not intended to be 
included in the cross reference to Sec.  758.1(g)(4).
    This final rule also revises Sec.  758.10 to add references to 
License Exception RPL and BIS licenses as two additional EAR 
authorizations as valid purposes for a temporary import under this 
section. This final rule does this by revising paragraph (b)(1)(i) to 
broaden the number of permissible statements to allow for three 
statements (instead of the single statement that was included in the 
Commerce May 24 rule). This final rule adds new paragraphs (b)(1)(i)(A) 
(to account for License Exception TMP under 15 CFR 740.9(b)(5)), 
(b)(1)(i)(B) (to account for the addition of License Exception RPL 
under 15 CFR 740.10(b)), and (b)(1)(i)(C) (to account for BIS licenses) 
to add the three statements. The three statements are substantively the 
same, and the only difference is the EAR authorization being referenced 
in the statement. As a conforming change, this final rule adds a new 
paragraph (b)(1)(iv) that applies if the item being temporarily 
imported under Sec.  758.10 is for servicing or replacement. Under this 
new paragraph (b)(1)(iv) at the time of temporary import, the name, 
address and contact information of the organization or individual in 
the U.S. that will be receiving the item for servicing or replacement 
must be provided to CBP. Lastly, as an additional conforming change, 
this final rule adds a new Note 2 to paragraph (b)(1) to impose 
exclusions, similar to those imposed on License Exception TMP that 
limit the availability of License Exception RPL for temporary imports 
of certain firearms shipped from or manufactured in listed countries.

Unique Application and Submission Requirements for Licenses

    This final rule also adopts the following changes for BIS license 
applications in response to comments received. As described above, BIS 
agreed to include changes in Sec.  758.10 to account for temporary 
imports that would require a BIS license for subsequent export.
    In Supplement No. 2 to part 748--Unique Application and Submission 
Requirements, this final rule adds a new paragraph (z) (Exports of 
firearms and certain shotguns temporarily in the United States) 
describing a certification requirement for applicants to include in 
Block 24 of the BIS license application. The certification requirement 
is an acknowledgement by the applicant that the firearms in the 
application will not be shipped from or manufactured in Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, except for any firearm model controlled by 0A501 that is 
specified under Annex A in Supplement No. 4 to part 740. The 
certification also requires that the applicant and other parties to the 
transaction will comply with the requirements in paragraphs (z)(2)(i) 
and (ii) of Supplement No. 2 to part 748. This final rule adds 
paragraph (z)(2) (Requirements) to describe the requirements that will 
be applicable for any license for the export of firearms controlled by 
ECCN 0A501.a or .b, or shotguns with a barrel length less than 18 
inches controlled in ECCN 0A502 that will be temporarily imported to 
the United States. These requirements impose the same type of 
requirements as this final rule includes for License Exception TMP 
under paragraph (b)(5) and License Exception RPL under paragraph 
(b)(4), but does so by imposing the certification requirement in 
paragraph (z)(1). BIS will include a standard condition that will 
require compliance with the requirements in paragraphs (z)(2)(i) and 
(ii).

Changes to EAR Recordkeeping Requirements for Firearms Being Moved to 
the CCL (Part 762)

    BIS does not make any additional changes in this final rule to what 
was proposed in the Commerce May 24 rule as a result of the comments 
received, so these changes are adopted as proposed. In part 762 
(Recordkeeping), this final rule adopts two changes to the 
recordkeeping requirements under the EAR. These changes specify that 
certain records, that are already created and kept in the normal course 
of business, must be kept by the ``exporter'' or any other party to the 
transaction (see Sec.  758.3 of the EAR), that creates or receives such 
records.
    Specifically, in Sec.  762.2 (Records to be retained), this final 
rule redesignates paragraph (a)(11) as (a)(12) and adds a new paragraph 
(a)(11) to specify the following information must be kept as an EAR 
record: Serial number, make, model, and caliber for any firearm 
controlled in ECCN 0A501.a and for shotguns with barrel length less 
than 18 inches controlled in 0A502. The ``exporter'' or any other 
``party to the transaction'' that creates or receives such records is 
the person responsible for retaining this record.
    In Sec.  762.3 (Records exempt from recordkeeping requirements), 
this final rule narrows the scope of an exemption from the EAR 
recordkeeping requirements for warranty certificates. This final rule 
narrows this exclusion to specify the exclusion from the recordkeeping 
requirements does not apply (meaning the record will need to be kept 
under the recordkeeping requirements) for warranty certificates for any 
firearm controlled in ECCN 0A501.a and for shotguns with barrel length 
less than 18 inches controlled in 0A502, when the certificate issued is 
for an address located outside the United States. This is an expansion 
of the EAR recordkeeping requirements, but because warranty 
certificates are already created and kept as part of normal business 
recordkeeping purposes, this expansion is not anticipated to create any 
new or increased burden under the

[[Page 4169]]

EAR, because it is a document that is created in the normal course of 
business and should be easily accessible. These recordkeeping 
requirements will assist the United States Government because it is 
important for law enforcement to have access to this information.

Conforming Change To Add a New Definition for Use in ECCNs 0A501 and 
0A502 (Sec.  772.1)

    This final rule also adds a new definition to the definition part 
of the EAR to respond to the comments received on the Commerce May 24 
rule:
    In Sec.  772.1 (Definitions of terms as used in the Export 
Administration Regulations), this final rule adds a definition of 
``complete breech mechanisms.'' The new definition specifies that this 
is a mechanism for opening and closing the breech of a breech-loading 
firearm, especially of a heavy-caliber weapon. As a conforming change, 
this final rule also adds double quotation marks around the term where 
it is used in ECCNs 0A501 and 0A502.

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852) that provides the legal basis for BIS's principal authorities and 
serves as the authority under which BIS issues this rule. As set forth 
in Section 1768 of ECRA, all delegations, rules, regulations, orders, 
determinations, licenses, or other forms of administrative action that 
have been made, issued, conducted, or allowed to become effective under 
the Export Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as in 
effect prior to August 13, 2018 and as continued in effect pursuant to 
the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) and Executive Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., 
p. 783 (2002), as amended by Executive Order 13637 of March 8, 2013, 78 
FR 16129 (March 13, 2013), and as extended by the Notice of August 8, 
2018, 83 FR 39871 (August 13, 2018)), or the Export Administration 
Regulations, and are in effect as of August 13, 2018, shall continue in 
effect according to their terms until modified, superseded, set aside, 
or revoked under the authority of ECRA.

Executive Order Requirements

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This final rule has been designated a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) of Executive Order 12866. Although the items identified in 
this final rule have been determined to no longer warrant ITAR control 
by the President, the proliferation of such items has been identified 
as a threat to domestic and international security if not classified 
and controlled at the appropriate level under the EAR. Commerce 
estimates that the combined effect of all rules to be published adding 
items removed from the ITAR to the EAR will increase the number of 
license applications to be submitted to BIS by approximately 30,000 
annually.
    This final rule does not contain policies with Federalism 
implications as that term is defined under E.O. 13132.
    To control these items under the EAR that no longer warrant ITAR 
control, appropriate controls on the CCL needed to be included in the 
Department of Commerce final rule. This includes creating new ECCNs and 
revising certain existing ECCNs, as well as making other changes to the 
EAR to control items that will be moved from these three USML 
categories to the CCL once the section 38(f) notification process is 
completed and a final rule is published and becomes effective. Adding 
new controls and other requirements to the EAR imposes regulatory 
burdens on exporters and some other parties involved with those items, 
but compared to the burdens these exporters and other parties faced 
under the ITAR, these regulatory burdens, including financial costs, 
will be reduced significantly. The EAR is a more flexible regulatory 
structure whereby the items can still be controlled appropriately, but 
in a much more efficient way that will significantly reduce the burdens 
on exporters and other parties compared to the regulatory burdens they 
faced when the items were ``subject to the ITAR.'' Deregulatory does 
not mean a decontrol of these items.
    For those items in USML Categories I, II, and III that will move by 
this rule to the CCL, BIS will be collecting the necessary information 
using the form associated with OMB Control No. 0694-0088. BIS estimates 
that this form takes approximately 43.8 minutes for a manual or 
electronic submission. Using the State Department's estimate that 
10,000 license applications annually will move from the USML to the CCL 
and BIS's estimate in this final rule that 6,000 of the 10,000 license 
applications will require licenses under the EAR, that constitutes a 
burden of 4,380 hours for this collection under the EAR. Those 
companies are currently using the State Department's forms associated 
with OMB Control No. 1405-0003 for which the burden estimate is 1 hour 
per submission, which for 10,000 applications results in a burden of 
10,000 hours. Thus, subtracting the BIS burden hours of 4,380 from the 
State Department burden hours of 10,000, the burden is reduced by 5,620 
hours. The other 4,000 applicants may use license exceptions under the 
EAR or the ``no license required'' designation, so these applicants 
will not be required to submit license applications under the EAR.
    In addition to the reduced burden hours of 5,620 hours, there will 
also be direct cost savings to the State Department that will result 
from the 10,000 license applications no longer being required under the 
ITAR once these items are moved to the EAR. The Department of State 
charges a registration fee to apply for a license under the ITAR. 
Pursuant to the AECA, ITAR, and associated delegations of authority, 
every person who engages in the business of brokering activities, 
manufacturing, exporting, or temporarily importing any defense articles 
or defense services must register with the Department of State and pay 
a registration fee. The Department of State adopted the current fee 
schedule to align the registration fees with the cost of licensing, 
compliance, and other related activities. The Department of Commerce 
will incur additional costs to administer these controls and process 
license applications. However, the Department of Commerce does not 
charge a registration fee to apply for a license under the EAR, and we 
are unable to estimate the increase in costs to the Department of 
Commerce to process the new license applications. Therefore, we are 
unable to provide an estimate of the net change in resource costs to 
the government from moving these items from the ITAR to the EAR. It is 
the case, however, that the movement of these items from the ITAR will 
result in a permanent and recurring direct transfer of $2,500,000 per 
year from the government to the exporting public, less the increased 
cost to taxpayers, because they will no longer

[[Page 4170]]

pay fees to the State Department for licenses and there is no fee 
charged by the Department of Commerce to apply for a license.

Estimated Cost Savings

    For purposes of E.O. 13771 of January 30, 2017 (82 FR 9339), the 
Department of State and Department of Commerce final rules are expected 
to be ``net deregulatory actions.'' The Department of Commerce has 
conducted this analysis in close consultation with the Department of 
State, because of how closely linked the two final rules are for the 
regulated public and the burdens imposed under the U.S. export control 
system.
    E.O. 13771 and guidance provided to the agencies on interpreting 
the intended scope of the E.O. do not use the term ``net deregulatory 
action,'' but rather refer to deregulatory actions. As outlined above, 
the Departments of State and Commerce final rules are closely linked 
and are best viewed as a consolidated deregulatory action although 
being implemented by two different agencies. Also, as noted above, 
items may not be subject to both sets of regulations. Therefore, the 
movement of a substantial number of items from the USML determined to 
no longer warrant ITAR control to the CCL will result in a significant 
reduction of regulatory burden for exporters and other persons involved 
with such items that were previously ``subject to the ITAR.''
    For purposes of E.O. 13771, the Departments of State and Commerce 
have agreed to equally share the cost burden reductions that will 
result from the publication of these two integral deregulatory actions. 
The Department of State will receive 50% and the Department of Commerce 
will receive 50% for purposes of calculating the deregulatory benefit 
of these two integral actions.
    Under this agreed formulation, the burden reductions will be 
calculated as follows:
    For purposes of the Department of Commerce, the ``net deregulatory 
actions'' will result in a permanent and recurring cost savings of 
$1,250,000 per year, and a reduction in burden hours by 2,810 hours. 
The reduction in burden hours by 2,810 will result in an additional 
cost savings of \1\ $126,281 to the exporting public. The total cost 
savings will be $1,376,281 in present (2017) dollars. To allow for cost 
comparisons under E.O. 13771, the value of these costs savings in 2016 
dollars is $1,353,574. Assuming a 7% discount rate, the present value 
of these cost savings in perpetuity is $19,336,771. Since the costs 
savings of this rule are expected to be permanent and recurring, the 
annualized value of these cost savings is also $1,353,574 in 2016 
dollars.
---------------------------------------------------------------------------

    \1\ The Department of Commerce used the Department of State's 
estimate that the burden hour cost for completing a license 
application is $44.94 per hour. Multiplied by the estimated burden 
hour savings of 2,810 equals a cost savings to the public of 
$126,281.
---------------------------------------------------------------------------

    For purposes of the Department of State, the ``net deregulatory 
actions'' will result in a permanent and recurring cost savings of 
$1,250,000 per year, and a reduction in burden hours by 2,810 hours. 
The reduction in burden hours by 2,810 will result in an additional 
cost savings of $126,281 to the exporting public. The total cost 
savings will be $1,376,281 in present (2017) dollars. To allow for cost 
comparisons under E.O. 13771, the value of these costs savings in 2016 
dollars is $1,353,574. Assuming a 7% discount rate, the present value 
of these cost savings in perpetuity is $19,336,771. Since the costs 
savings of this rule are expected to be permanent and recurring, the 
annualized value of these cost savings is also $1,353,574 in 2016 
dollars.
    The Department of Commerce in the Commerce May 24 rule welcomed 
comments from the public on the analysis under E.O. 13771 described 
here. The Commerce May 24 rule noted that it would be helpful to 
receive comments from companies that will no longer need to register 
with the Department of State because the company only deals with items 
under USML Category I, II, and/or III that will move to the CCL. 
Comments were also encouraged on any of the other collections that may 
be relevant for the items that will move from the USML to the CCL. The 
Commerce May 24 rule also noted that it would be helpful to receive 
data on Department of State forms that will no longer need to be 
submitted.

Paperwork Reduction Act Requirements

    Notwithstanding any other provision of law, no person may be 
required to respond to or 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 OMB control 
number.
    This final regulation involves four collections currently approved 
by OMB under these BIS collections and control numbers: Simplified 
Network Application Processing System (control number 0694-0088), which 
includes, among other things, license applications; License Exceptions 
and Exclusions (control number 0694-0137); Import Certificates and End-
User Certificates (control number 0694-0093); Five Year Records 
Retention Period (control number 0694-0096); and the U.S. Census Bureau 
collection for the Automated Export System (AES) Program (control 
number 0607-0152).
    This final rule will affect the information collection, under 
control number 0694-0088, associated with the multi-purpose application 
for export licenses. This collection carries a burden estimate of 43.8 
minutes for a manual or electronic submission for a burden of 31,833 
hours. BIS believes that the combined effect of all rules to be 
published adding items removed from the ITAR to the EAR will be an 
increase in the number of license applications to be submitted by 
approximately 30,000 annually, resulting in an increase in burden hours 
of 21,900 (30,000 transactions at 43.8 minutes each) under this control 
number. For those items in USML Categories I, II, and III that will 
move by this rule to the CCL, the State Department estimates that 
10,000 applicants annually will move from the USML to the CCL. BIS 
estimates that 6,000 of the 10,000 applicants will require licenses 
under the EAR, resulting in a burden of 4,380 hours under this control 
number. Those companies are currently using the State Department's 
forms associated with OMB Control No. 1405-0003 for which the burden 
estimate is 1 hour per submission, which for 10,000 applications 
results in a burden of 10,000 hours. Thus, subtracting the BIS burden 
hours of 4,380 from the State Department burden hours of 10,000, the 
burden will be reduced by 5,620 hours. (See the description above for 
the E.O. 13771 analysis for additional information on the cost benefit 
savings and designation of the two rules as ``net deregulatory 
actions''.)
    This final rule will also affect the information collection under 
control number 0694-0137, addressing the use of license exceptions and 
exclusions. Some parts and components formerly on the USML, and 
``software'' and ``technology'' for firearms and their parts and 
components formerly on the USML, will become eligible for License 
Exception STA under this final rule. Additionally, test, inspection and 
production equipment, and ``software'' and ``technology'' related to 
those firearms and ``parts'' may become eligible for License Exception 
STA. BIS believes that the increased use of License Exception STA 
resulting from the combined effect of all rules to be

[[Page 4171]]

published adding items removed from the ITAR to the EAR will increase 
the burden associated with control number 0694-0137 by about 23,858 
hours (20,450 transactions at 1 hour and 10 minutes each).
    BIS expects that this increase in burden as a result of the 
increased use of License Exception STA will be more than offset by a 
reduction in burden hours associated with approved collections related 
to the ITAR. This final rule addresses controls on firearms and 
``parts,'' production equipment and ``parts'' and related ``software'' 
and ``technology'' and specifically non-automatic and semi-automatic 
firearms and their ``parts'' and ``parts,'' ``components,'' 
``attachments,'' and ``accessories'' that are used in both semi-
automatic and fully automatic firearms. BIS has made this determination 
on the basis that with few exceptions, the ITAR allows exemptions from 
license requirements only for exports to Canada, and requires a 
specific State Department authorization for most exports of firearms 
used for hunting and recreational purposes and exports of ``parts,'' 
``components,'' ``attachments,'' and ``accessories'' that are common to 
military fully automatic firearms and their semi-automatic civilian 
counterparts, even when destined to NATO and other close allies and 
also requires State Department authorization for the exports necessary 
to produce ``parts'' and ``components'' for defense articles in the 
inventories of the United States and its NATO and other close allies. 
However, under the EAR, as specified in this final rule, a number of 
low-level parts will be eligible for export under License Exception STA 
and will therefore not require a license to such destinations.
    This final rule will also affect the information collection under 
control number 0694-0096, for the five-year recordkeeping retention 
because of two changes this rule will make to part 762 of the EAR. This 
rule adds a new paragraph (a)(11) to Sec.  762.2 to specify the 
following information must be kept as an EAR record: Serial number, 
make, model, and caliber for any firearm controlled in ECCN 0A501.a and 
for shotguns with barrel length less than 18 inches controlled in 
0A502. This rule will also require warranty certificates for these 
items to be retained for EAR recordkeeping. However, because these 
records are already created and kept as part of normal business 
recordkeeping, this expansion is not anticipated to create any new or 
increased burden under the EAR.
    Even in situations in which a license will be required under the 
EAR, the burden will likely be reduced compared to a license 
requirement under the ITAR. In particular, license applications for 
exports of ``technology'' controlled by ECCN 0E501 will likely be less 
complex and burdensome than the authorizations required to export ITAR-
controlled technology, i.e., Manufacturing License Agreements and 
Technical Assistance Agreements (as a result of the differences in the 
scope of the ITAR's and the EAR's technology controls).
    This final rule will affect the information collection under 
control number 0694-0093, import certificates and end-user certificates 
because of the changes included in this final rule. First, this 
regulation will require that for shipments requiring a license of 
firearms, ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' controlled under ECCN 0A501, the exporter must obtain a 
copy of the import certificate or permit if the importing country 
requires one for importing firearms. License applications for which an 
import or end-user certificate is already required under Sec.  748.12 
of the EAR will not be subject to this new requirement. BIS expects 
that this requirement will result in no change in the burden under 
control number 0694-0093. Second, this final rule also will require 
that prior to departure, travelers leaving the United States and 
intending to temporarily export firearms, parts, and components 
controlled under ECCN 0A501 under License Exception BAG declare the 
firearms and parts to a CBP officer and present the firearms and parts 
to the CBP officer for inspection. As the State Department also 
requires that persons temporarily exporting firearms, parts, and 
components declare the items to CBP, BIS does not expect that the 
requirement in this final rule will result in a change in burden under 
control number 0694-0093.
    Third, this final rule will affect the information collection under 
control number 0694-0093 by creating a new temporary import entry 
clearance requirement by adding Sec.  758.10. This new section will be 
limited to items in this rule that are both ``subject to the EAR'' and 
on the United States Munitions Import List (USMIL) in 27 CFR 447.21. To 
allow such items to temporarily enter the U.S., this rule implements a 
process to collect identifying information for the sole purpose of 
tracking items being temporarily imported for subsequent export under 
License Exceptions TMP, RPL, and BIS licenses. BIS will not impose a 
license requirement for such imports, but collecting this information 
will be necessary to facilitate the export after a temporary import. 
The temporary import entry clearance requirement in Sec.  758.10 will 
also conform to the requirements in License Exception TMP under Sec.  
740.9(b)(5), License Exception RPL under Sec.  740.9(b)(4), and for BIS 
licenses under paragraph (z) in Supplement No. 2 to part 748, so 
providing this information to CBP at entry after a temporary import 
will facilitate the export phase of a temporary import under License 
Exceptions TMP, RPL and BIS licenses. At the time of entry for a 
temporary import, the importer will need to provide a statement to CBP 
indicating that this shipment was being temporarily imported in 
accordance with the EAR for subsequent export in accordance with and 
under the authority of License Exceptions TMP, RPL, or a BIS license. 
The entry clearance requirement will be an EAR requirement and any 
false representation made under the new Sec.  758.10 will be a 
violation of the EAR. The importer will also need to provide CBP an 
invoice or other appropriate import-related documentation (or 
electronic equivalents) that includes a complete list and description 
of the items being imported, including their model, make, caliber, 
serial numbers, quantity, and U.S. dollar value. If imported for a 
trade show, exhibition, demonstration, or testing, the temporary 
importer will need to provide CBP with the relevant invitation or 
registration documentation for the event and an accompanying letter 
that details the arrangements to maintain effective control of the 
firearms while they are temporarily in the United States. If imported 
for servicing or replacement, the temporary importer will need to 
provide CBP with the name, address and contact information (telephone 
number and/or email) of the organization or individual in the U.S. that 
will be receiving the item for servicing or replacement. Lastly, at the 
time of exportation, upon request by CBP, the exporter, or an agent 
acting on his or her behalf, will have to provide the entry document 
number or a copy of the CBP document under which the ``item'' ``subject 
to the EAR'' on the USMIL was temporarily imported under this entry 
clearance requirement. As the State Department also requires that 
persons temporarily importing items in this rule provide the same type 
of information to CBP, BIS expects that the requirement in this final 
rule will result in a change in burden under control number 0694-0093, 
but because of the decrease under the burden imposed

[[Page 4172]]

under the State collection, the burden on the public will not change.
    This final rule will also affect the information collection under 
control number 0607-0152, for filing EEI in AES because of one change 
this final rule makes to part 758 of the EAR. Under new Sec.  
758.1(b)(9), EEI will be required for all exports of items controlled 
under ECCNs 0A501.a or .b, shotguns with a barrel length less than 18 
inches controlled under ECCN 0A502, or ammunition controlled under ECCN 
0A505 except for .c, regardless of value or destination, including 
exports to Canada. Exports of these USML firearms and ammunition prior 
to moving to the CCL required filing EEI in AES for all items ``subject 
to the ITAR,'' so the burden in this collection will not change for the 
exporter.
    This final rule includes a requirement that, for all exports of 
temporary exports from the United States or when the license or other 
approval contains a condition requiring all or some of this information 
to be filed as EEI in AES of items controlled under ECCNs 0A501.a or 
.b, or shotguns with a barrel length less than 18 inches controlled 
under ECCN 0A502, in addition to any other required data for the 
associated EEI filing requirements, the exporter must provide to CBP 
the serial number, make, model, and caliber for each firearm being 
exported. The Department of Commerce is carrying over the existing CBP 
filing requirements for items transferred from the USML to the CCL. The 
Department of Homeland Security currently is collecting these data 
elements for firearms ``subject to the ITAR'' under OMB Control Number 
1651-0010 (CBP Form 4457, Certificate of Registration for Personal 
Effects Taken Abroad). There is no change to the information being 
collected or to the burden hours as a result of this rule. Separate 
from this rule, CBP will update the information collection to reflect 
the use of AES or some other simplified electronic alternative to CBP 
Form 4457.
    Any comments regarding the collection of information associated 
with this final rule, including suggestions for reducing the burden, 
may be sent to Jasmeet K. Seehra, Office of Management and Budget 
(OMB), by email to Jasmeet_K._Seehra@omb.eop.gov, or by fax to (202) 
395-7285.

Administrative Procedure Act and Regulatory Flexibility Act 
Requirements

    Pursuant to section 1762 of the Export Control Reform Act of 2018 
(Title XVII, Subtitle B of Pub. L. 115-232), which was included in the 
John S. McCain National Defense Authorization Act for Fiscal Year 2019, 
this action is exempt from the Administrative Procedure Act (APA) (5 
U.S.C. 553) requirements for notice of proposed rulemaking, opportunity 
for public participation, and delay in effective date.
    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by the APA or 
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 Parts 732, 740, and 748

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

15 CFR Part 734

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

15 CFR Parts 736 and 772

    Exports.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Parts 746 and 774

    Exports, Reporting and recordkeeping requirements.

15 CFR Part 758

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

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Reporting and recordkeeping 
requirements.

    For the reasons stated in the preamble, parts 732, 734, 736, 740, 
742, 743, 744, 746, 748, 758, 762, 772, and 774 of the Export 
Administration Regulations (15 CFR parts 730-774) are amended as 
follows:

PART 732--STEPS FOR USING THE EAR

0
1. The authority citation for 15 CFR part 732 is revised 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.; 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 732.2 is amended by adding one sentence to the end of 
paragraph (b) introductory text to read as follows:

Sec.  732.2  Steps regarding scope of the EAR.

* * * * *
    (b) * * * The following also remains subject to the EAR: 
``Software'' or ``technology'' for the production of a firearm, or 
firearm frame or receiver, controlled under ECCN 0A501, as referenced 
in Sec.  734.7(c) of the EAR).
* * * * *

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

0
3. The authority citation for 15 CFR part 734 is revised 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.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of November 12, 2019, 84 FR 61817 (November 13, 
2019).

0
4. Section 734.7 is amended by revising paragraph (a) introductory text 
and adding paragraph (c) to read as follows:

Sec.  734.7  Published.

    (a) Except as set forth in paragraphs (b) and (c) of this section, 
unclassified ``technology'' or ``software'' is ``published,'' and is 
thus not ``technology'' or ``software'' subject to the EAR, when it has 
been made available to the public without restrictions upon its further 
dissemination such as through any of the following:
* * * * *
    (c) The following remains subject to the EAR: ``software'' or 
``technology'' for the production of a firearm, or firearm frame or 
receiver, controlled under ECCN 0A501, that is made available by 
posting on the internet in an electronic format, such as AMF or G-code, 
and is ready for insertion into a computer numerically controlled 
machine tool, additive manufacturing equipment, or any other equipment 
that makes use of the ``software'' or ``technology'' to

[[Page 4173]]

produce the firearm frame or receiver or complete firearm.

PART 736--GENERAL PROHIBITIONS

0
5. The authority citation for 15 CFR part 736 is revised 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.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., 
p. 168; Notice of May 8, 2019, 84 FR 20537 (May 10, 2019); Notice of 
November 12, 2019, 84 FR 61817 (November 13, 2019).

0
6. Supplement No. 1 to part 736 is amended by revising paragraph (e)(3) 
to read as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *
    (e) * * *
    (3) Prior commodity jurisdiction determinations. If the U.S. 
State Department has previously determined that an item is not 
subject to the jurisdiction of the ITAR and the item was not listed 
in a then existing ``018'' series ECCN (for purposes of the ``600 
series'' ECCNs, or the 0x5zz ECCNs) or in a then existing ECCN 
9A004.b or related software or technology ECCN (for purposes of the 
9x515 ECCNs), then the item is per se not within the scope of a 
``600 series'' ECCN, a 0x5zz ECCN, or a 9x515 ECCN. If the item was 
not listed elsewhere on the CCL at the time of such determination 
(i.e., the item was designated EAR99), the item shall remain 
designated as EAR99 unless specifically enumerated by BIS or DDTC in 
an amendment to the CCL or to the USML, respectively.
* * * * *

PART 740--LICENSE EXCEPTIONS

0
7. The authority citation for 15 CFR 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
8. Section 740.2 is amended by adding paragraphs (a)(21) and (22) to 
read as follows:

Sec.  740.2  Restrictions on all License Exceptions.

    (a) * * *
    (21) The reexport or transfer (in-country) of firearms classified 
under ECCNs 0A501 or 0A502 if a part or component that is not ``subject 
to the ITAR,'' but would otherwise meet the criteria in USML Category 
I(h)(2) (i.e., parts and components specially designed for conversion 
of a semiautomatic firearm to a fully automatic firearm) is 
incorporated into the firearm or is to be reexported or transferred 
(in-country) with the firearm with ``knowledge'' the part or component 
will be subsequently incorporated into the firearm. (See USML Category 
I(h)(2)). In such instances, no license exceptions are available except 
for License Exception GOV (Sec.  740.11(b)(2)(ii)).
    (22) The export, reexport, or transfer (in-country) of any item 
classified under a 0x5zz ECCN when a party to the transaction is 
designated on the Department of the Treasury, Office of Foreign Assets 
Control (OFAC), Specially Designated Nationals and Blocked Persons 
(SDN) list under the designation [SDNT], pursuant to the Narcotics 
Trafficking Sanctions Regulations, 31 CFR part 536, or under the 
designation [SDNTK], pursuant to the Foreign Narcotics Kingpin 
Sanctions Regulations, 31 CFR part 598.
* * * * *

0
9. Section 740.9 is amended by:
0
a. Adding five sentences at the end of paragraph (a) introductory text;
0
b. Adding one sentence at the end of paragraph (b)(1) introductory 
text;
0
c. Adding paragraph (b)(5); and
0
d. Redesignating notes 1 through 3 to paragraph (b) as notes 2 through 
4 to paragraph (b).
    The additions read as follows:

Sec.  740.9  Temporary imports, exports, reexports, and transfers (in-
country) (TMP).

* * * * *
    (a) * * * This paragraph (a) does not authorize any export of a 
commodity controlled under ECCNs 0A501.a or .b, or shotguns with a 
barrel length less than 18 inches controlled under ECCN 0A502 to, or 
any export of such an item that was imported into the United States 
from, a country in Country Group D:5 (Supplement No. 1 to this part), 
or from Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, 
Ukraine, or Uzbekistan. The only provisions of this paragraph (a) that 
are eligible for use to export such items are paragraph (a)(5) of this 
section (``Exhibition and demonstration'') and paragraph (a)(6) of this 
section (``Inspection, test, calibration, and repair''). In addition, 
this paragraph (a) may not be used to export more than 75 firearms per 
shipment. In accordance with the requirements in Sec.  758.1(b)(9) and 
(g)(4) of the EAR, the exporter or its agent must provide documentation 
that includes the serial number, make, model, and caliber of each 
firearm being exported by filing these data elements in an EEI filing 
in AES. In accordance with the exclusions in License Exception TMP 
under paragraph (b)(5) of this section, the entry clearance 
requirements in Sec.  758.1(b)(9) do not permit the temporary import 
of: Firearms controlled in ECCN 0A501.a or .b that are shipped from or 
manufactured in a Country Group D:5 country, or that are shipped from 
or manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
Turkmenistan, Ukraine, or Uzbekistan (except for any firearm model 
designation (if assigned) controlled by 0A501 that is specified under 
Annex A in Supplement No. 4 to this part); or shotguns with a barrel 
length less than 18 inches controlled in ECCN 0A502 that are shipped 
from or manufactured in a Country Group D:5 country, or from Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, because of the exclusions in License Exception TMP under 
paragraph (b)(5) of this section.
* * * * *
    (b) * * *
    (1) * * * No provision of paragraph (b) of this section, other than 
paragraph (b)(3), (4), or (5), may be used to export firearms 
controlled by ECCN 0A501.a, .b, or shotguns with a barrel length less 
than 18 inches controlled in ECCN 0A502.
* * * * *
    (5) Exports of firearms and certain shotguns temporarily in the 
United States. This paragraph (b)(5) authorizes the export of no more 
than 75 end item firearms per shipment controlled by ECCN 0A501.a or 
.b, or shotguns with a barrel length less than 18 inches controlled in 
ECCN 0A502 that are temporarily in the United States for a period not 
exceeding one year, provided that:
    (i) The firearms were not shipped from or manufactured in a U.S. 
arms embargoed country, i.e., destination listed in Country Group D:5 
in Supplement No. 1 to this part;
    (ii) The firearms were not shipped from or manufactured in Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, except for any firearm model controlled by 0A501 that is 
specified under Annex A in Supplement No. 4 to this part; and
    (iii) The firearms are not ultimately destined to a U.S. arms 
embargoed country, i.e., destination listed in Country Group D:5 in 
Supplement No. 1 to this part, or to Russia;
    (iv) When the firearms entered the U.S. as a temporary import, the 
temporary importer or its agent:
    (A) Provided the following statement to U.S. Customs and Border 
Protection: ``This shipment will be exported in

[[Page 4174]]

accordance with and under the authority of License Exception TMP (15 
CFR 740.9(b)(5))'';
    (B) Provided to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value; and
    (C) Provided (if temporarily imported for a trade show, exhibition, 
demonstration, or testing) to U.S. Customs and Border Protection the 
relevant invitation or registration documentation for the event and an 
accompanying letter that details the arrangements to maintain effective 
control of the firearms while they are in the United States; and
    (v) In addition to the export clearance requirements of part 758 of 
the EAR, the exporter or its agent must provide the import 
documentation related to paragraph (b)(5)(iv)(B) of this section to 
U.S. Customs and Border Protection at the time of export.

    Note 1 to paragraph (b)(5): In addition to complying with all 
applicable EAR requirements for the export of commodities described 
in paragraph (b)(5) of this section, exporters and temporary 
importers should contact U.S. Customs and Border Protection (CBP) at 
the port of temporary import or export, or at the CBP website, for 
the proper procedures for temporarily importing or exporting 
firearms controlled in ECCN 0A501.a or .b or shotguns with a barrel 
length less than 18 inches controlled in ECCN 0A502, including 
regarding how to provide any data or documentation required by BIS.

* * * * *

0
10. Section 740.10 is amended by:
0
a. Adding one sentence at the end of paragraph (b)(1); and
0
b. Adding paragraph (b)(4).
    The additions read as follows:

Sec.  740.10  License Exception Servicing and replacement of parts and 
equipment (RPL).

* * * * *
    (b) * * *
    (1) * * * The export of firearms controlled by ECCN 0A501.a or .b, 
or shotguns with a barrel length less than 18 inches controlled in ECCN 
0A502 temporarily in the United States for servicing and replacement 
may be exported under paragraph (b)(2) or (3) of this section only if 
the additional requirements in paragraph (b)(4) of this section are 
also met.
* * * * *
    (4) This paragraph (b)(4) authorizes the export of firearms 
controlled by ECCN 0A501.a or .b, or shotguns with a barrel length less 
than 18 inches controlled in ECCN 0A502 that are temporarily in the 
United States for servicing or replacement for a period not exceeding 
one year or the time it takes to service or replace the commodity, 
whichever is shorter, provided that the requirements of paragraph 
(b)(2) or (3) of this section are met and:
    (i) The firearms were not shipped from or manufactured in Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, except for any firearm model controlled by 0A501 that is 
specified under Annex A in Supplement No. 4 to this part;
    (ii) When the firearms entered the U.S. as a temporary import, the 
temporary importer or its agent:
    (A) Provided the following statement to U.S. Customs and Border 
Protection: ``This shipment will be exported in accordance with and 
under the authority of License Exception RPL (15 CFR 740.10(b))'';
    (B) Provided to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value; and
    (C) Provided (if temporarily imported for servicing or replacement) 
to U.S. Customs and Border Protection the name, address and contact 
information (telephone number and/or email) of the organization or 
individual in the U.S. that will be receiving the item for servicing or 
replacement; and
    (iii) In addition to the export clearance requirements of part 758 
of the EAR, the exporter or its agent must provide the import 
documentation related to paragraph (b)(4)(iii)(B) of this section to 
U.S. Customs and Border Protection at the time of export.

    Note 1 to paragraph (b)(4): In addition to complying with all 
applicable EAR requirements for the export of commodities described 
in paragraph (b)(4) of this section, exporters and temporary 
importers should contact U.S. Customs and Border Protection (CBP) at 
the port of temporary import or export, or at the CBP website, for 
the proper procedures for temporarily importing or exporting 
firearms controlled in ECCN 0A501.a or .b or shotguns with a barrel 
length less than 18 inches controlled in ECCN 0A502, including 
regarding how to provide any data or documentation required by BIS.

* * * * *

0
11. Section 740.11 is amended by:
0
a. Adding two sentences at the end of the introductory text;
0
b. Adding note 2 to paragraph (b)(2); and
0
c. Redesignating note 1 to paragraph (c)(1) as note 3 to paragraph 
(c)(1) and notes 1 and 2 to paragraph (e) as notes 4 and 5 to paragraph 
(e).
    The additions read as follows:

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

    * * * Commodities listed in ECCN 0A501 are eligible only for 
transactions described in paragraphs (b)(2)(i) and (ii) of this 
section. Any item listed in a 0x5zz ECCN for export, reexport, or 
transfer (in-country) to an E:1 country is eligible only for 
transactions described in paragraphs (b)(2)(i) and (ii) solely for U.S. 
Government official use of this section.
* * * * *

    Note 2 to paragraph (b)(2): Items controlled for NS, MT, CB, NP, 
FC, or AT reasons may not be exported, reexported, or transferred 
(in-country) to, or for the use of military, police, intelligence 
entities, or other sensitive end users (e.g., contractors or other 
governmental parties performing functions on behalf of military, 
police, or intelligence entities) of a government in a Country Group 
E:1 or E:2 country.

* * * * *

0
12. Section 740.14 is amended by revising paragraph (b)(4) introductory 
text and paragraph (e) heading and adding paragraphs (e)(3) and (4) to 
read as follows:

Sec.  740.14  Baggage (BAG).

* * * * *
    (b) * * *
    (4) Tools of trade. Usual and reasonable kinds and quantities of 
tools, instruments, or equipment and their containers and also 
technology for use in the trade, occupation, employment, vocation, or 
hobby of the traveler or members of the household who are traveling or 
moving. For special provisions regarding firearms and ammunition, see 
paragraph (e) of this section. For special provisions regarding 
encryption commodities and software subject to EI controls, see 
paragraph (f) of this section. For a special provision that specifies 
restrictions regarding the export or reexport of technology under this 
paragraph (b)(4), see paragraph (g) of this section. For special 
provisions regarding personal protective equipment under ECCN 1A613.c 
or .d, see paragraph (h) of this section.
* * * * *
    (e) Special provisions for firearms and ammunition. * * *
    (3) A United States citizen or a permanent resident alien leaving 
the

[[Page 4175]]

United States may export under this License Exception firearms, 
``parts,'' ``components,'' ``accessories,'' or ``attachments'' 
controlled under ECCN 0A501 and ammunition controlled under ECCN 
0A505.a, subject to the following limitations:
    (i) Not more than three firearms and 1,000 rounds of ammunition may 
be taken on any one trip.
    (ii) ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' exported pursuant to this paragraph (e)(3) must be of a 
kind and limited to quantities that are reasonable for the activities 
described in paragraph (e)(3)(iv) of this section or that are necessary 
for routine maintenance of the firearms being exported.
    (iii) The commodities must be with the person's baggage.
    (iv) The commodities must be for the person's exclusive use and not 
for resale or other transfer of ownership or control. Accordingly, 
except as provided in paragraph (e)(4) of this section, firearms, 
``parts,'' ``components,'' ``accessories,'' ``attachments,'' and 
ammunition, may not be exported permanently under this License 
Exception. All firearms, ``parts,'' ``components,'' ``accessories,'' or 
``attachments'' controlled under ECCN 0A501 and all unused ammunition 
controlled under ECCN 0A505.a exported under this License Exception 
must be returned to the United States.
    (v) Travelers leaving the United States temporarily are required to 
declare the firearms, ``parts,'' ``components,'' ``accessories,'' 
``attachments,'' and ammunition being exported under this License 
Exception to a Customs and Border Protection (CBP) officer prior to 
departure from the United States and present such items to the CBP 
officer for inspection, confirming that the authority for the export is 
License Exception BAG and that the exporter is compliant with its 
terms.
    (4) A nonimmigrant alien leaving the United States may export or 
reexport under this License Exception only such firearms controlled 
under ECCN 0A501 and ammunition controlled under ECCN 0A505 as he or 
she brought into the United States under the relevant provisions of 
Department of Justice regulations at 27 CFR part 478.
* * * * *

0
13. Section 740.16 is amended by revising paragraphs (a)(2) and 
(b)(2)(iv) and (v) and adding paragraph (b)(2)(vi) to read as follows:

Sec.  740.16  Additional permissive reexports (APR).

* * * * *
    (a) * * *
    (2) The commodities being reexported are not controlled for NP, CB, 
MT, SI, or CC reasons or described in ECCNs 0A919, 3A001.b.2 or b.3 
(except those that are being reexported for use in civil 
telecommunications applications), 6A002, 6A003; or commodities 
classified under a 0x5zz ECCN; and
* * * * *
    (b) * * *
    (2) * * *
    (iv) Commodities described in ECCN 0A504 that incorporate an image 
intensifier tube;
    (v) Commodities described in ECCN 6A002; or
    (vi) Commodities classified under a 0x5zz ECCN.
* * * * *

0
14. Section 740.20 is amended by revising paragraph (b)(2)(ii) to read 
as follows:

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

* * * * *
    (b) * * *
    (2) * * *
    (ii) License Exception STA may not be used for:
    (A) Any item controlled in ECCNs 0A501.a, .b, .c, .d, or .e; 0A981; 
0A982; 0A983; 0A503; 0E504; 0E982; or
    (B) Shotguns with barrel length less than 18 inches controlled in 
0A502.
* * * * *

0
15. Add Supplement No. 4 to part 740 to read as follows:

Supplement No. 4 to Part 740--Annex A Firearm Models

    (a) Pistols/revolvers.
    (1) German Model P08 Pistol = SMCR.
    (2) IZH 34M, .22 Target pistol.
    (3) IZH 35M, .22 caliber Target pistol.
    (4) Mauser Model 1896 pistol = SMCR.
    (5) MC-57-1 pistol.
    (6) MC-1-5 pistol.
    (7) Polish Vis Model 35 pistol = SMCR.
    (8) Soviet Nagant revolver = SMCR.
    (9) TOZ 35, .22 caliber Target pistol.
    (10) MTs 440.
    (11) MTs 57-1.
    (12) MTs 59-1.
    (13) MTs 1-5.
    (14) TOZ-35M (starter pistol).
    (15) Biathlon-7K.
    (b) Rifles.
    (1) BARS-4 Bolt Action carbine.
    (2) Biathlon target rifle, .22.
    (3) British Enfield rifle = SMCR.
    (4) CM2, .22 target rifle (also known as SM2, .22).
    (5) German model 98K = SMCR.
    (6) German model G41 = SMCR.
    (7) German model G43 = SMCR.
    (8) IZH-94.
    (9) LOS-7, bolt action.
    (10) MC-7-07.
    (11) MC-18-3.
    (12) MC-19-07.
    (13) MC-105-01.
    (14) MC-112-02.
    (15) MC-113-02.
    (16) MC-115-1.
    (17) MC-125/127.
    (18) MC-126.
    (19) MC-128.
    (20) Saiga.
    (21) Soviet Model 38 carbine = SMCR.
    (22) Soviet Model 44 carbine = SMCR.
    (23) Soviet Model 91/30 rifle = SMCR.
    (24) TOZ 18, .22 bolt action.
    (25) TOZ 55.
    (26) TOZ 78.
    (27) Ural Target, .22lr.
    (28) VEPR rifle.
    (29) Winchester Model 1895, Russian Model rifle = SMCR.
    (30) Sever--double barrel.
    (31) IZH18MH single barrel break action.
    (32) MP-251 over/under rifle.
    (33) MP-221 double barrel rifle.
    (34) MP-141K.
    (35) MP-161K.
    (36) MTs 116-1.
    (37) MTs 116M.
    (38) MTs 112-02.
    (39) MTs 115-1.
    (40) MTs 113-02.
    (41) MTs 105-01.
    (42) MTs 105-05.
    (43) MTs 7-17 combination gun.
    (44) MTs 7-12-07 rifle/shotgun.
    (45) MTs 7-07.
    (46) MTs 109-12-07 rifle.
    (47) MTs 109-07 rifle.
    (48) MTs 106-07 combination.
    (49) MTs 19-97.
    (50) MTs 19-09.
    (51) MTs 18-3M.
    (52) MTs 125.
    (53) MTs 126.
    (54) MTs 127.
    (55) Berkut-2.
    (56) Berkut-2M1.
    (57) Berkut-3.
    (58) Berkut-2-1.
    (59) Berkut-2M2.
    (60) Berkut-3-1.
    (61) Ots-25.
    (62) MTs 20-07.
    (63) LOS-7-1.
    (64) LOS-7-2.
    (65) LOS-9-1.
    (66) Sobol (Sable).
    (67) Rekord.
    (68) Bars-4-1.
    (69) Saiga.
    (70) Saiga-M.
    (71) Saiga 308.
    (72) Saiga-308-1.
    (73) Saiga 308-2.
    (74) Saiga-9.
    (75) Korshun.
    (76) Ural-5-1.
    (77) Ural 6-1.
    (78) Ural-6-2.
    (79) SM-2.
    (80) Biatlon-7-3.
    (81) Biatlon-7-4.
    (82) Rekord-1.
    (83) Rekord-2.
    (84) Rekord-CISM.
    (85) Rekord-1-308.
    (86) Rekord-2-308.
    (87) Rekord-1-308-CISM.

[[Page 4176]]

    (88) VEPR.
    (89) VEPR Super.
    (90) VEPR Pioneer.
    (91) VEPR Safari.
    (92) TOZ 109.
    (93) KO 44-1.
    (94) TOZ 78-01.
    (95) KO 44.
    (96) TOZ 99.
    (97) TOZ 99-01.
    (98) TOZ 55-01 Zubr.
    (99) TOZ 55-2 Zubr.
    (100) TOZ 120 Zubr.
    (101) MTs 111.
    (102) MTs 109.
    (103) TOZ 122.
    (104) TOZ 125.
    (105) TOZ 28.
    (106) TOZ 300.

PART 742--CONTROL POLICY--CCL BASED CONTROLS

0
16. The authority citation for part 742 is revised 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. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 
Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 
12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 
59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 
Comp., p. 320; Notice of November 12, 2019, 84 FR 61817 (November 
13, 2019).

0
17. Section 742.6 is amended by revising the first and sixth sentences 
of paragraph (b)(1)(i) and adding a seventh sentence at the end of 
paragraph (b)(1)(i) to read as follows:

Sec.  742.6  Regional stability.

* * * * *
    (b) * * *
    (1) * * *
    (i) Applications for exports and reexports of ECCN 0A501, 0A504, 
0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 items; 9x515 
items and ``600 series'' items and will be reviewed on a case-by-case 
basis to determine whether the transaction is contrary to the national 
security or foreign policy interests of the United States, including 
the foreign policy interest of promoting the observance of human rights 
throughout the world. * * * When destined to the People's Republic of 
China or a country listed in Country Group E:1 in Supplement No. 1 to 
part 740 of the EAR, items classified under ECCN 0A501, 0A505, 0B501, 
0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 or any 9x515 ECCN will be 
subject to a policy of denial. In addition, applications for exports 
and reexports of ECCN 0A501, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 
0E504, and 0E505 items when there is reason to believe the transaction 
involves criminal organizations, rebel groups, street gangs, or other 
similar groups or individuals, that may be disruptive to regional 
stability, including within individual countries, will be subject to a 
policy of denial.
* * * * *

0
18. Section 742.7 is amended by revising paragraphs (a)(1) through (4) 
and (c) to read as follows:

Sec.  742.7  Crime control and detection.

    (a) * * *
    (1) Crime control and detection instruments and equipment and 
related ``technology'' and ``software'' identified in the appropriate 
ECCNs on the CCL under CC Column 1 in the Country Chart column of the 
``License Requirements'' section. A license is required to countries 
listed in CC Column 1 (Supplement No. 1 to part 738 of the EAR). Items 
affected by this requirement are identified on the CCL under the 
following ECCNs: 0A502, 0A504, 0A505.b, 0A978, 0A979 0E502, 0E505 
(``technology'' for ``development'' or for ``production'' of buckshot 
shotgun shells controlled under ECCN 0A505.b), 1A984, 1A985, 3A980, 
3A981, 3D980, 3E980, 4A003 (for fingerprint computers only), 4A980, 
4D001 (for fingerprint computers only), 4D980, 4E001 (for fingerprint 
computers only), 4E980, 6A002 (for police-model infrared viewers only), 
6E001 (for police-model infrared viewers only), 6E002 (for police-model 
infrared viewers only), and 9A980.
    (2) Shotguns with a barrel length greater than or equal to 24 
inches, identified in ECCN 0A502 on the CCL under CC Column 2 in the 
Country Chart column of the ``License Requirements'' section regardless 
of end user to countries listed in CC Column 2 (Supplement No. 1 to 
part 738 of the EAR).
    (3) Shotguns with barrel length greater than or equal to 24 inches, 
identified in ECCN 0A502 on the CCL under CC Column 3 in the Country 
Chart column of the ``License Requirements'' section only if for sale 
or resale to police or law enforcement entities in countries listed in 
CC Column 3 (Supplement No. 1 to part 738 of the EAR).
    (4) Certain crime control items require a license to all 
destinations, except Canada. These items are identified under ECCNs 
0A982, 0A503, and 0E982. Controls for these items appear in each ECCN; 
a column specific to these controls does not appear in the Country 
Chart (Supplement No. 1 to part 738 of the EAR).
* * * * *
    (c) Contract sanctity. Contract sanctity date: August 22, 2000. 
Contract sanctity applies only to items controlled under ECCNs 0A982, 
0A503, and 0E982 destined for countries not listed in CC Column 1 of 
the Country Chart (Supplement No. 1 to part 738 of the EAR).
* * * * *

0
19. Section 742.17 is amended by revising the first sentence of 
paragraph (a) and paragraph (f) to read as follows:

Sec.  742.17   Exports of firearms to OAS member countries.

    (a) License requirements. BIS maintains a licensing system for the 
export of firearms and related items to all OAS member countries. * * *
* * * * *
    (f) Items/Commodities. Items requiring a license under this section 
are ECCNs 0A501 (except 0A501.y), 0A502, 0A504 (except 0A504.f), and 
0A505 (except 0A505.d). (See Supplement No. 1 to part 774 of the EAR).
* * * * *

Sec.  742.19  [Amended]

0
20. Section 742.19(a)(1) is amended by:
0
a. Removing ``0A986'' and adding in its place ``0A505.c''; and
0
b. Removing ``0B986'' and adding in its place ``0B505.c''.

PART 743--SPECIAL REPORTING AND NOTIFICATION

0
21. The authority citation for 15 CFR part 743 is revised 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 223.

0
22. Section 743.4 is amended by:
0
a. In paragraph (a):
0
i. Removing ``(c)(1)'' and ``(c)(2)'' and adding in their places 
``(c)(1) of this section'' and ``(c)(2) of this section,'' 
respectively; and
0
ii. Adding four sentences to the end of the paragraph;
0
b. Redesignating the note to paragraph (a) as note 1 to paragraph (a) 
and removing ``Sec.  743.4'' in newly redesignated note 1 and adding 
``this section'' in its place;
0
c. Revising paragraph (b) introductory text;
0
d. Adding paragraphs (c)(1)(i) and (c)(2)(i);
0
e. Redesignating the note to paragraph (e)(1)(ii) as note 2 to 
paragraph (e)(1)(ii);

[[Page 4177]]

0
e. Revising paragraph (h); and
0
f. Adding paragraph (i).
    The additions and revisions read as follows:

Sec.  743.4  Conventional arms reporting.

    (a) * * * This section does not require reports when the exporter 
uses the alternative submission method described under paragraph (h) of 
this section. The alternative submission method under paragraph (h) 
requires the exporter to submit the information required for 
conventional arms reporting in this section as part of the required EEI 
submission in AES, pursuant to Sec.  758.1(b)(9) of the EAR. Because of 
the requirements in Sec.  758.1(g)(4)(ii) of the EAR for the firearms 
that require conventional arms reporting of all conventional arms, the 
Department of Commerce believes all conventional arms reporting 
requirements for firearms will be met by using the alternative 
submission method. The Department of Commerce leaves standard method 
for submitting reports in place in case any additional items are moved 
from the USML to the CCL, that may require conventional arms reporting.
* * * * *
    (b) Requirements. You must submit one electronic copy of each 
report required under the provisions of this section, or submit this 
information using the alternative submission method specified in 
paragraph (h) of this section, and maintain accurate supporting records 
(see Sec.  762.2(b) of the EAR) for all exports of items specified in 
paragraph (c) of this section for the following:
* * * * *
    (c) * * *
    (1) * * *
    (i) ECCN 0A501.a and .b.
* * * * *
    (2) * * *
    (i) ECCN 0A501.a and .b.
* * * * *
    (h) Alternative submission method. This paragraph (h) describes an 
alternative submission method for meeting the conventional arms 
reporting requirements of this section. The alternative submission 
method requires the exporter, when filing the required EEI submission 
in AES, pursuant to Sec.  758.1(b)(9) of the EAR, to include the six 
character ECCN classification (i.e., 0A501.a or 0A501.b) as the first 
text to appear in the Commodity description block. If the exporter 
properly includes this information in the EEI filing in AES, the 
Department of Commerce will be able to obtain that export information 
directly from AES to meet the U.S. Government's commitments to the 
Wassenaar Arrangement and United Nations for conventional arms 
reporting. An exporter that complies with the requirements in Sec.  
758.1(g)(4)(ii) of the EAR does not have to submit separate annual and 
semi-annual reports to the Department of Commerce pursuant to this 
section.
    (i) Contacts. General information concerning the Wassenaar 
Arrangement and reporting obligations thereof is available from the 
Office of National Security and Technology Transfer Controls, Tel.: 
(202) 482-0092, Fax: (202) 482-4094. Information concerning the 
reporting requirements for items identified in paragraphs (c)(1) and 
(2) of this section is available from the Office of Nonproliferation 
and Treaty Compliance (NPTC), Tel.: (202) 482-4188, Fax: (202) 482-
4145.

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

0
23. The authority citation for 15 CFR part 744 is revised 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. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice 
of September 19, 2019, 83 FR 49633 (September 20, 2019); Notice of 
November 12, 2019, 84 FR 61817 (November 13, 2019).

Sec.  744.9  [Amended]

0
24. Section 744.9 is amended by removing ``0A987'' from paragraphs 
(a)(1) introductory text and (b) and adding in its place ``0A504''.

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

0
25. The authority citation for 15 CFR part 746 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. 287c; Sec 1503, Pub. L. 108-11, 117 
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 
CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR 
26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7, 
72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 8, 2019, 84 FR 
20537 (May 10, 2019).

Sec.  746.3  [Amended]

0
26. Section 746.3 is amended by removing ``0A986'' from paragraph 
(b)(2) and adding in its place ``0A505.c''.

Sec.  746.7  [Amended]

0
27. Section 746.7(a)(1) is amended by:
0
a. Adding ``0A503,'' immediately before ``0A980''; and
0
b. Removing ``0A985,''.

PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND 
DOCUMENTATION

0
28. The authority citation for 15 CFR part 748 is revised 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.; 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
29. Section 748.12 is amended by:
0
a. Revising the section heading;
0
b. Adding introductory text;
0
c. Revising paragraphs (a) introductory text and (a)(1);
0
d. Redesignating the note to paragraph (c)(8) as note 1 to paragraph 
(c)(8); and
0
e. Adding paragraph (e).
    The revisions and additions read as follows.

Sec.  748.12  Firearms import certificate or import permit.

    License applications for certain firearms and related commodities 
require support documents in accordance with this section. For 
destinations that are members of the Organization of American States 
(OAS), an FC Import Certificate or equivalent official document is 
required in accordance with paragraphs (a) through (d) of this section. 
For other destinations that require a firearms import or permit, the 
firearms import certificate or permit is required in accordance with 
paragraph (e) of this section.
    (a) Requirement to obtain document for OAS member states. Unless an 
exception in Sec.  748.9(c) applies, an FC Import Certificate is 
required for license applications for firearms and related commodities, 
regardless of value, that are destined for member countries of the OAS. 
This requirement is consistent with the OAS Model Regulations described 
in Sec.  742.17 of the EAR.
    (1) Items subject to requirement. Firearms and related commodities 
are those commodities controlled for ``FC Column 1'' reasons under 
ECCNs 0A501 (except 0A501.y), 0A502, 0A504 (except 0A504.f), or 0A505 
(except 0A505.d).
* * * * *
    (e) Requirement to obtain an import certificate or permit for other 
than OAS member states. If the country to which

[[Page 4178]]

firearms, parts, components, accessories, and attachments controlled 
under ECCN 0A501, or ammunition controlled under ECCN 0A505, are being 
exported or reexported requires that a government-issued certificate or 
permit be obtained prior to importing the commodity, the exporter or 
reexporter must obtain and retain on file the original or a copy of 
that certificate or permit before applying for an export or reexport 
license unless:
    (1) A license is not required for the export or reexport; or
    (2) The exporter is required to obtain an import or end-user 
certificate or other equivalent official document pursuant to 
paragraphs (a) thorough (d) of this section and has, in fact, complied 
with that requirement.
    (3)(i) The number or other identifying information of the import 
certificate or permit must be stated on the license application.
    (ii) If the country to which the commodities are being exported 
does not require an import certificate or permit for firearms imports, 
that fact must be noted on any license application for ECCN 0A501 or 
0A505 commodities.

    Note 2 to paragraph (e). Obtaining a BIS Statement by Ultimate 
Consignee and Purchaser pursuant to Sec.  748.11 does not exempt the 
exporter or reexporter from the requirement to obtain a 
certification pursuant to paragraph (a) of this section because that 
statement is not issued by a government.

0
30. Supplement No. 2 to part 748 is amended by adding paragraph (z) to 
read as follows:

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

* * * * *
    (z) Exports of firearms and certain shotguns temporarily in the 
United States--(1) Certification. If you are submitting a license 
application for the export of firearms controlled by ECCN 0A501.a or 
.b, or shotguns with a barrel length less than 18 inches controlled 
in ECCN 0A502 that will be temporarily in the United States, e.g., 
for servicing and repair or for intransit shipments, you must 
include the following certification in Block 24:
    The firearms in this license application will not be shipped 
from or manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, 
Moldova, Turkmenistan, Ukraine, or Uzbekistan, except for any 
firearm model controlled by 0A501 that is specified under Annex A in 
Supplement No. 4 to part 740. I and the parties to this transaction 
will comply with the requirements specified in paragraphs (z)(2)(i) 
and (ii) of Supplement No. 2 to part 748.
    (2) Requirements. Each approved license for commodities 
described under this paragraph (z) must comply with the requirements 
specified in paragraphs (z)(2)(i) and (ii) of this supplement.
    (i) When the firearms enter the U.S. as a temporary import, the 
temporary importer or its agent must:
    (A) Provide the following statement to U.S. Customs and Border 
Protection: ``This shipment is being temporarily imported in 
accordance with the EAR. This shipment will be exported in 
accordance with and under the authority of BIS license number 
(provide the license number) (15 CFR 750.7(a) and 758.4);''
    (B) Provide to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value; and
    (C) Provide (if temporarily imported for servicing or 
replacement) to U.S. Customs and Border Protection the name, 
address, and contact information (telephone number and/or email) of 
the organization or individual in the U.S. that will be receiving 
the item for servicing or replacement); and
    (ii) In addition to the export clearance requirements of part 
758 of the EAR, the exporter or its agent must provide the import 
documentation related to paragraph (z)(2)(i)(B) of this supplement 
to U.S. Customs and Border Protection at the time of export.

    Note 1 to paragraph (z): In addition to complying with all 
applicable EAR requirements for the export of commodities described 
in paragraph (z) of this supplement, exporters and temporary 
importers should contact U.S. Customs and Border Protection (CBP) at 
the port of temporary import or export, or at the CBP website, for 
the proper procedures for temporarily importing or exporting 
firearms controlled in ECCN 0A501.a or .b or shotguns with a barrel 
length less than 18 inches controlled in ECCN 0A502, including 
regarding how to provide any data or documentation required by BIS.

PART 758--EXPORT CLEARANCE REQUIREMENTS

0
31. The authority citation for part 758 is revised 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.

0
32. Section 758.1 is amended by:
0
a. Revising paragraphs (b)(7) and (8);
0
b. Adding paragraph (b)(9);
0
c. Revising paragraph (c)(1);
0
d. Adding paragraph (g)(4); and
0
e. Redesignating note to paragraph (h)(1) as note 3 to paragraph 
(h)(1).
    The revisions and additions read as follows:

Sec.  758.1  The Electronic Export Enforcement (EEI) filing to the 
Automated Export System (AES).

* * * * *
    (b) * * *
    (7) For all items exported under authorization Validated End-User 
(VEU);
    (8) For all exports of tangible items subject to the EAR where 
parties to the transaction, as described in Sec.  748.5(d) through (f) 
of the EAR, are listed on the Unverified List (Supplement No. 6 to part 
744 of the EAR), regardless of value or destination; or
    (9) For all exports, except for exports authorized under License 
Exception BAG, as set forth in Sec.  740.14 of the EAR, of items 
controlled under ECCNs 0A501.a or .b, shotguns with a barrel length 
less than 18 inches controlled under ECCN 0A502, or ammunition 
controlled under ECCN 0A505 except for .c, regardless of value or 
destination, including exports to Canada.
    (c) * * *
    (1) License Exception Baggage (BAG), as set forth in Sec.  740.14 
of the EAR. See 15 CFR 30.37(x) of the FTR;

    Note 1 to paragraph (c)(1): See the export clearance 
requirements for exports of firearms controlled under ECCNs 0A501.a 
or .b, shotguns with a barrel length less than 18 inches controlled 
under ECCN 0A502, or ammunition controlled under ECCN 0A505, 
authorized under License Exception BAG, as set forth in Sec.  740.14 
of the EAR.

* * * * *
    (g) * * *
    (4) Exports of firearms and related items. This paragraph (g)(4) 
includes two separate requirements under paragraphs (g)(4)(i) and (ii) 
of this section that are used to better identify exports of certain end 
item firearms under the EAR. Paragraph (g)(4)(i) of this section is 
limited to certain EAR authorizations. Paragraph (g)(4)(ii) of this 
section applies to all EAR authorizations that require EEI filing in 
AES.
    (i) Identifying end item firearms by manufacturer, model, caliber, 
and serial number in the EEI filing in AES. For any export authorized 
under License Exception TMP or a BIS license authorizing a temporary 
export of items controlled under ECCNs 0A501.a or .b, or shotguns with 
a barrel length less than 18 inches controlled under ECCN 0A502, in 
addition to any other required data for the associated EEI filing, you 
must report the manufacturer, model, caliber, and serial number of the 
exported items. The requirements of this paragraph (g)(4)(i) also apply 
to any other export authorized under a BIS license that includes a 
condition or proviso on the license requiring the submission of this 
information specified in paragraph (g) of this section when the EEI is 
filed in AES.

[[Page 4179]]

    (ii) Identifying end item firearms by ``items'' level 
classification or other control descriptor in the EEI filing in AES. 
For any export of items controlled under ECCNs 0A501.a or .b, or 
shotguns with a barrel length less than 18 inches controlled under ECCN 
0A502, in addition to any other required data for the associated EEI 
filing, you must include the six character ECCN classification (i.e., 
0A501.a, or 0A501.b), or for shotguns controlled under 0A502 the phrase 
``0A501 barrel length less than 18 inches'' as the first text to appear 
in the Commodity description block in the EEI filing in AES. (See Sec.  
743.4(h) of the EAR for the use of this information for conventional 
arms reporting).

    Note 2 to paragraph (g)(4): If a commodity described in 
paragraph (g)(4) of this section is exported under License Exception 
TMP under Sec.  740.9(a)(6) of the EAR for inspection, test, 
calibration, or repair is not consumed or destroyed in the normal 
course of authorized temporary use abroad, the commodity must be 
disposed of or retained in one of the ways specified in Sec.  
740.9(a)(14)(i), (ii), or (iii) of the EAR. For example, if a 
commodity described in paragraph (g)(4) was destroyed while being 
repaired after being exported under Sec.  740.9(a)(6), the commodity 
described in paragraph (g)(4) would not be required to be returned. 
If the entity doing the repair returned a replacement of the 
commodity to the exporter from the United States, the import would 
not require an EAR authorization. The entity that exported the 
commodity described in paragraph (g)(4) and the entity that received 
the commodity would need to document this as part of their 
recordkeeping related to this export and subsequent import to the 
United States.

* * * * *

0
33. Add Sec.  758.10 to read as follows:

Sec.  758.10   Entry clearance requirements for temporary imports.

    (a) Scope. This section specifies the temporary import entry 
clearance requirements for firearms ``subject to the EAR'' that are on 
the United States Munitions Import List (USMIL, 27 CFR 447.21), except 
for firearms ``subject to the EAR'' that are temporarily brought into 
the United States by nonimmigrant aliens under the provisions of 
Department of Justice regulations at 27 CFR part 478 (See Sec.  
740.14(e) of the EAR for information on the export of these firearms 
``subject to the EAR''). These firearms are controlled in ECCN 0A501.a 
or .b or shotguns with a barrel length less than 18 inches controlled 
in ECCN 0A502. Items that are temporarily exported under the EAR must 
have met the export clearance requirements specified in Sec.  758.1.
    (1) An authorization under the EAR is not required for the 
temporary import of ``items'' that are ``subject to the EAR,'' 
including for ``items'' ``subject to the EAR'' that are on the USMIL. 
Temporary imports of firearms described in this section must meet the 
entry clearance requirements specified in paragraph (b) of this 
section.
    (2) Permanent imports are regulated by the Attorney General under 
the direction of the Department of Justice's Bureau of Alcohol, 
Tobacco, Firearms and Explosives (see 27 CFR parts 447, 478, 479, and 
555).
    (b) EAR procedures for temporary imports and subsequent exports. To 
the satisfaction of U.S. Customs and Border Protection, the temporary 
importer must comply with the following procedures:
    (1) At the time of entry into the U.S. of the temporary import:
    (i) Provide one of the following statements specified in paragraph 
(b)(1)(i)(A), (B), or (C) of this section to U.S. Customs and Border 
Protection:
    (A) ``This shipment is being temporarily imported in accordance 
with the EAR. This shipment will be exported in accordance with and 
under the authority of License Exception TMP (15 CFR 740.9(b)(5));''
    (B) ``This shipment is being temporarily imported in accordance 
with the EAR. This shipment will be exported in accordance with and 
under the authority of License Exception RPL (15 CFR 740.10(b));'' or
    (C) ``This shipment is being temporarily imported in accordance 
with the EAR. This shipment will be exported in accordance with and 
under the authority of BIS license number (provide the license number) 
(15 CFR 750.7(a) and 758.4);''
    (ii) Provide to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value;
    (iii) Provide (if temporarily imported for a trade show, 
exhibition, demonstration, or testing) to U.S. Customs and Border 
Protection the relevant invitation or registration documentation for 
the event and an accompanying letter that details the arrangements to 
maintain effective control of the firearms while they are in the United 
States; or
    (iv) Provide (if temporarily imported for servicing or replacement) 
to U.S. Customs and Border Protection the name, address and contact 
information (telephone number and/or email) of the organization or 
individual in the U.S. that will be receiving the item for servicing or 
replacement).

    Note 1 to paragraph (b)(1): In accordance with the exclusions in 
License Exception TMP under Sec.  740.9(b)(5) of the EAR, the entry 
clearance requirements in Sec.  758.1(b)(9) do not permit the 
temporary import of: Firearms controlled in ECCN 0A501.a or .b that 
are shipped from or manufactured in a Country Group D:5 country; or 
that are shipped from or manufactured in Russia, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan (except for any firearm model controlled by 0A501 that is 
specified under Annex A in Supplement No. 4 to part 740 of the EAR); 
or shotguns with a barrel length less than 18 inches controlled in 
ECCN 0A502 that are shipped from or manufactured in a Country Group 
D:5 country, or from Russia, Georgia, Kazakhstan, Kyrgyzstan, 
Moldova, Turkmenistan, Ukraine, or Uzbekistan, because of the 
exclusions in License Exception TMP under Sec.  740.9(b)(5).

    Note 2 to paragraph (b)(1):  In accordance with the exclusions 
in License Exception RPL under Sec.  740.10(b)(4) and Supplement No. 
2 to part 748, paragraph (z), of the EAR, the entry clearance 
requirements in Sec.  758.1(b)(9) do not permit the temporary import 
of: Firearms controlled in ECCN 0A501.a or .b that are shipped from 
or manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
Turkmenistan, Ukraine, or Uzbekistan (except for any firearm model 
controlled by 0A501 that is specified under Annex A in Supplement 
No. 4 to part 740 of the EAR); or shotguns with a barrel length less 
than 18 inches controlled in ECCN 0A502 that are shipped from or 
manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
Turkmenistan, Ukraine, or Uzbekistan, because of the exclusions in 
License Exception RPL under Sec.  740.10(b)(4) and Supplement No. 2 
to part 748, paragraph (z), of the EAR.

    (2) At the time of export, in accordance with the U.S. Customs and 
Border Protection procedures, the eligible exporter, or an agent acting 
on the filer's behalf, must as required under Sec.  758.1(b)(9) file 
the export information with CBP by filing EEI in AES, noting the 
applicable EAR authorization as the authority for the export, and 
provide, upon request by CBP, the entry document number or a copy of 
the CBP document under which the ``item'' subject to the EAR'' on the 
USMIL was temporarily imported. See also the additional requirements in 
Sec.  758.1(g)(4).

0
34. Add Sec.  758.11 to read as follows:

Sec.  758.11   Export clearance requirements for firearms and related 
items.

    (a) Scope. The export clearance requirements of this section apply 
to all exports of commodities controlled under ECCNs 0A501.a or .b, 
shotguns with a barrel length less than 18 inches controlled under ECCN 
0A502, or

[[Page 4180]]

ammunition controlled under ECCN 0A505 except for .c, regardless of 
value or destination, including exports to Canada, that are authorized 
under License Exception BAG, as set forth in Sec.  740.14 of the EAR.
    (b) Required form. Prior to making any export described in 
paragraph (a) of this section, the exporter is required to submit a 
properly completed Department of Homeland Security, CBP Form 4457, 
(Certificate of Registration for Personal Effects Taken Abroad) (OMB 
Control Number 1651-0010), to the U.S. Customs and Border Protection 
(CBP), pursuant to 19 CFR 148.1, and as required by this section.
    (1) Where to obtain the form? The CBP Certification of Registration 
Form 4457 can be found on the following CBP website: https://www.cbp.gov/document/forms/form-4457-certificate-registration-personal-effects-taken-abroad.
    (2) Required ``description of articles'' for firearms to be 
included on the CBP Form 4457. For all exports of firearms controlled 
under ECCNs 0A501.a or .b, or shotguns with a barrel length less than 
18 inches controlled under ECCN 0A502, the exporter must provide to CBP 
the serial number, make, model, and caliber for each firearm being 
exported by entering this information under the ``Description of 
Articles'' field of the CBP Form 4457, Certificate of Registration for 
Personal Effects Taken Abroad.
    (c) Where to find additional information on the CBP Form 4457? See 
the following CBP website page for additional information: https://
help.cbp.gov/app/answers/detail/a_id/323/~/traveling-outside-of-the-
u.s.-temporarily-taking-a-firearm%2C-rifle%2C-gun%2C.
    (d) Return of items exported pursuant to this section. The exporter 
when returning with a commodity authorized under License Exception BAG 
and exported pursuant this section, is required to present a copy of 
the CBP Form 4457, Certificate of Registration for Personal Effects 
Taken Abroad) (OMB Control Number 1651-0010), to CBP, pursuant to 19 
CFR 148.1, and as required by this section.

PART 762--RECORDKEEPING

0
35. The authority citation for part 762 is revised 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.

0
36. Section 762.2 is amended by removing ``and,'' at the end of 
paragraph (a)(10), redesignating paragraph (a)(11) as paragraph 
(a)(12), and adding a new paragraph (a)(11) to read as follows:

Sec.  762.2  Records to be retained.

    (a) * * *
    (11) The serial number, make, model, and caliber for any firearm 
controlled in ECCN 0A501.a and for shotguns with barrel length less 
than 18 inches controlled in 0A502 that have been exported. The 
``exporter'' or any other party to the transaction (see Sec.  758.3 of 
the EAR), that creates or receives such records is a person responsible 
for retaining this record; and
* * * * *

0
37. Section 762.3 is amended by revising paragraph (a)(5) to read as 
follows:

Sec.  762.3  Records exempt from recordkeeping requirements.

    (a) * * *
    (5) Warranty certificate, except for a warranty certificate issued 
for an address located outside the United States for any firearm 
controlled in ECCN 0A501.a and for shotguns with barrel length less 
than 18 inches controlled in 0A502;
* * * * *

PART 772--DEFINITIONS OF TERMS

0
38. The authority citation for part 772 is revised 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.

0
39. In Sec.  772.1:
0
a. The definition of ``Complete breech mechanisms'' is added in 
alphabetical order; and
0
b. In the definition of ``Specially designed,'' note 1 is amended by 
removing ``0B986'' and adding in its place ``0B505.c''.
    The addition reads as follows:

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

* * * * *
    Complete breech mechanisms. The mechanism for opening and closing 
the breech of a breech-loading firearm, especially of a heavy-caliber 
weapon.
* * * * *

PART 774--THE COMMERCE CONTROL LIST

0
40. The authority citation for 15 CFR part 774 is revised 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
41. In Supplement No. 1 to part 774, Category 0, revise Export Control 
Classification Number (ECCN) 0A018 to read as follows:

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

* * * * *
0A018 Items on the Wassenaar Munitions List (see List of Items 
Controlled)

    No items currently are in this ECCN. See ECCN 0A505 for 
``parts'' and ``components'' for ammunition that, immediately prior 
to March 9, 2020, were classified under 0A018.b.

0
42. In Supplement No. 1 to part 774, Category 0, add, between entries 
for ECCNs 0A018 and 0A521, entries for ECCNs 0A501, 0A502, 0A503, 
0A504, and 0A505 to read as follows:

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
CIV: N/A

Special Conditions for STA

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

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

[[Page 4181]]

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).

    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, sears, disconnectors, pistol 
grips that contain fire control ``parts'' or ``components'' (e.g., 
triggers, hammers, sears, disconnectors) and buttstocks that contain 
fire control ``parts'' or ``components.''
    d. Detachable magazines with a capacity of greater than 16 
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.

    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.
    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 or grips, that do not contain any fire control 
``parts'' or ``components'' (e.g., triggers, hammers, sears, 
disconnectors);''
    y.2. Scope mounts or accessory rails;
    y.3. Iron sights;
    y.4. Sling swivels;
    y.5. Butt plates or recoil pads;
    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.''

    Note 3 to 0A501:  Antique firearms (i.e., those manufactured 
before 1890) and reproductions thereof, muzzle loading 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 4 to 0A501:  Muzzle loading (black powder) firearms with a 
caliber less than 20 mm that were manufactured later than 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.

0A502 Shotguns; shotguns ``parts'' and ``components,'' consisting of 
complete trigger mechanisms; magazines and magazine extension tubes; 
``complete breech mechanisms;'' except equipment 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.
                Control(s)                       No. 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
CIV: N/A

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 
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.
                Control(s)                       No. 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
CIV: N/A

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 4182]]

Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
0A504 Optical sighting devices for firearms (including shotguns 
controlled by 0A502); and ``components'' as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: FC, RS, CC, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
RS applies to paragraph .i................  RS Column 1
FC applies to paragraphs .a, .b, .c, .d,    FC Column 1
 .e, .g, and .i of this entry.
CC applies to entire entry................  CC Column 1
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: $500 for 0A504.g.
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: (1) See USML Category XII(c) for sighting devices 
using second generation image intensifier tubes having luminous 
sensitivity greater than 350 [micro]A/lm, or third generation or 
higher image intensifier tubes, that are ``subject to the ITAR.'' 
(2) See USML Category XII(b) for laser aiming or laser illumination 
systems ``subject to the ITAR.'' (3) Section 744.9 of the EAR 
imposes a license requirement on certain commodities described in 
0A504 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.
Related Definitions: N/A
Items:
    a. Telescopic sights.
    b. Holographic sights.
    c. Reflex or ``red dot'' sights.
    d. Reticle sights.
    e. Other sighting devices that contain optical elements.
    f. Laser aiming devices or laser illuminators ``specially 
designed'' for use on firearms, and having an operational wavelength 
exceeding 400 nm but not exceeding 710 nm.

    Note 1 to 0A504.f: 0A504.f does not control laser boresighting 
devices that must be placed in the bore or chamber to provide a 
reference for aligning the firearms sights.

    g. Lenses, other optical elements and adjustment mechanisms for 
articles in paragraphs .a, .b, .c, .d, .e, or .i.
    h. [Reserved]
    i. Riflescopes that were not ``subject to the EAR'' as of March 
8, 2020 and are ``specially designed'' for use in firearms that are 
``subject to the ITAR.''

    Note 2 to paragraph i:  For purpose of the application of 
``specially designed'' for the riflescopes controlled under 0A504.i, 
paragraph (a)(1) of the definition of ``specially designed'' in 
Sec.  772.1 of the EAR is what is used to determine whether the 
riflescope is ``specially designed.''

0A505 Ammunition as follows (see List of Items Controlled).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to 0A505.a and .x..............  NS Column 1
RS applies to 0A505.a and .x..............  RS Column 1
CC applies to 0A505.b.....................  CC Column 1
FC applies to entire entry except 0A505.d.  FC Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to 0A505.a, .d, and .x.........  AT Column 1
AT applies to 0A505.c.....................  A license is required for
                                             items controlled by
                                             paragraph .c of this entry
                                             to North Korea for anti-
                                             terrorism reasons. The
                                             Commerce Country Chart is
                                             not designed to determine
                                             AT licensing requirements
                                             for this entry. See Sec.
                                             742.19 of the EAR for
                                             additional information.
 

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

LVS: $500 for items in 0A505.x, except $3,000 for items in 0A505.x 
that, immediately prior to March 9, 2020, were classified under 
0A018.b. (i.e., ``Specially designed'' components and parts for 
ammunition, except cartridge cases, powder bags, bullets, jackets, 
cores, shells, projectiles, boosters, fuses and components, primers, 
and other detonating devices and ammunition belting and linking 
machines (all of which are ``subject to the ITAR''). (See 22 CFR 
parts 120 through 130))
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0A505.

List of Items Controlled

Related Controls: (1) Ammunition for modern heavy weapons such as 
howitzers, artillery, cannon, mortars and recoilless rifles as well 
as inherently military ammunition types such as ammunition 
preassembled into links or belts, caseless ammunition, tracer 
ammunition, ammunition with a depleted uranium projectile or a 
projectile with a hardened tip or core and ammunition with an 
explosive projectile are ``subject to the ITAR.'' (2) Percussion 
caps, and lead balls and bullets, for use with muzzle-loading 
firearms are EAR99 items.
Related Definitions: N/A
Items:
    a. Ammunition for firearms controlled by ECCN 0A501 or USML 
Category I and not enumerated in paragraph .b, .c, or .d of this 
entry or in USML Category III.
    b. Buckshot (No. 4 .24'' diameter and larger) shotgun shells.
    c. Shotgun shells (including less than lethal rounds) that do 
not contain buckshot; and ``specially designed'' ``parts'' and 
``components'' of shotgun shells.

    Note 1 to 0A505.c:  Shotgun shells that contain only chemical 
irritants are controlled under ECCN 1A984.

    d. Blank ammunition for firearms controlled by ECCN 0A501 and 
not enumerated in USML Category III.
    e. through w. [Reserved]
    x. ``Parts'' and ``components'' that are ``specially designed'' 
for a commodity subject to control in this ECCN or a defense article 
in USML Category III and not elsewhere specified on the USML, the 
CCL or paragraph .d of this entry.

     Note 2 to 0A505.x:  The controls on ``parts'' and 
``components'' in this entry include Berdan and boxer primers, 
metallic cartridge cases, and standard metallic projectiles such as 
full metal jacket, lead core, and copper projectiles.

    Note 3 to 0A505.x:  The controls on ``parts'' and ``components'' 
in this entry include those ``parts'' and ``components'' that are 
common to ammunition and ordnance described in this entry and to 
those enumerated in USML Category III.

    Note 4 to 0A505:  Lead shot smaller than No. 4 Buckshot, empty 
and unprimed shotgun shells, shotgun wads, smokeless gunpowder, 
`Dummy rounds' and blank rounds (unless linked or belted), not 
incorporating a lethal or non-lethal projectile(s) are designated 
EAR99. A `dummy round or drill round' is a round that is completely 
inert, i.e., contains no primer, propellant, or explosive charge. It 
is typically used to check weapon function and for crew training.

0
43. In Supplement No. 1 to part 774, Category 0, add, between entries 
for ECCNs 0A521 and 0A604, an entry for ECCN 0A602 to read as follows:

0A602 Guns and Armament as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

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

[[Page 4183]]

 
UN applies to entire entry................  See Sec.   746.1 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)

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

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0A602.

List of Items Controlled

Related Controls: (1) Modern heavy weapons such as howitzers, 
artillery, cannon, mortars, and recoilless rifles are ``subject to 
the ITAR.'' (2) See ECCN 0A919 for foreign-made ``military 
commodities'' that incorporate more than a de minimis amount of 
U.S.-origin ``600 series'' items. (3) See ECCN 0A606 for engines 
that are ``specially designed'' for a self-propelled gun or howitzer 
subject to control under paragraph .a of this ECCN or USML Category 
VII.
Related Definitions: N/A
Items:
    a. Guns and armament manufactured between 1890 and 1919.
    b. Military flame throwers with an effective range less than 20 
meters.
    c. through w. [Reserved]
    x. ``Parts'' and ``components'' that are ``specially designed'' 
for a commodity subject to control in paragraphs .a or .b of this 
ECCN or a defense article in USML Category II and not elsewhere 
specified on the USML or the CCL.

    Note 1 to 0A602.x: Engines that are ``specially designed'' for a 
self-propelled gun or howitzer subject to control under paragraph .a 
of this ECCN or a defense article in USML Category VII are 
controlled under ECCN 0A606.x.

    Note 2 to 0A602: ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' specified in USML subcategory II(j) are subject to 
the controls of that paragraph.

    Note 3 to 0A602:  Black powder guns and armament manufactured in 
or prior to 1890 and replicas thereof designed for use with black 
powder propellants are designated EAR99.

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

0
44. In Supplement No. 1 to part 774, Category 0, remove ECCNs 0A918, 
0A984, 0A985, 0A986, and 0A987.

0
45. In Supplement No. 1 to part 774, Category 0, revise ECCN 0A988 to 
read as follows:

0A988 Conventional military steel helmets.

    No items currently are in this ECCN. See ECCN 1A613.y.1 for 
conventional steel helmets that, immediately prior to July 1, 2014, 
were classified under 0A988.

0
46. In Supplement No. 1 to part 774, Category 0, add, before the entry 
for ECCN 0B521, entries for ECCNs 0B501 and 0B505 to read as follows:

0B501 Test, inspection, and production ``equipment'' and related 
commodities for the ``development'' or ``production'' of commodities 
enumerated or otherwise described in ECCN 0A501 or USML Category I 
as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except           NS Column 1
 equipment for ECCN 0A501.y.
RS applies to entire entry except           RS Column 1
 equipment for ECCN 0A501.y.
UN applies to entire entry................  See Sec.   746.1 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)

LVS: $3000
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used to ship any item in this entry.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:
    a. Small arms chambering machines.
    b. Small arms deep hole drilling machines and drills therefor.
    c. Small arms rifling machines.
    d. Small arms spill boring machines.
    e. Production equipment (including dies, fixtures, and other 
tooling) ``specially designed'' for the ``production'' of the items 
controlled in 0A501.a through .x. or USML Category I.

0B505 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development'' or 
``production'' of commodities enumerated or otherwise described in 
ECCN 0A505 or USML Category III, except equipment for the hand 
loading of cartridges and shotgun shells, as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to paragraphs .a and .x........  NS Column 1
RS applies to paragraphs .a and .x........  RS Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to paragraphs .a, .d, and .x...  AT Column 1
AT applies to paragraph .c................  A license is required for
                                             export or reexport of these
                                             items to North Korea for
                                             anti-terrorism reasons
 

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

LVS: $3000
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0B505.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:
    a. Production equipment (including tooling, templates, jigs, 
mandrels, molds, dies, fixtures, alignment mechanisms, and test 
equipment), not enumerated in USML Category III that are ``specially 
designed'' for the ``production'' of commodities controlled by ECCN 
0A505.a or .x or USML Category III.
    b. Equipment ``specially designed'' for the ``production'' of 
commodities in ECCN 0A505.b.
    c. Equipment ``specially designed'' for the ``production'' of 
commodities in ECCN 0A505.c.
    d. Equipment ``specially designed'' for the ``production'' of 
commodities in ECCN 0A505.d.
    e. through .w [Reserved]
    x. ``Parts'' and ``components'' ``specially designed'' for a 
commodity subject to control in paragraph .a of this entry.

0
47. In Supplement No. 1 to part 774, Category 0, add, between entries 
for ECCNs 0B521 and 0B604, an entry for ECCN 0B602 to read as follows:

0B602 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development'' or 
``production'' of commodities enumerated or otherwise described in 
ECCN 0A602 or USML Category II as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

[[Page 4184]]

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

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

LVS: $3000
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0B602.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:
    a. The following commodities if ``specially designed'' for the 
``development'' or ``production'' of commodities enumerated in ECCN 
0A602.a or USML Category II:
    a.1. Gun barrel rifling and broaching machines and tools 
therefor;
    a.2. Gun barrel rifling machines;
    a.3. Gun barrel trepanning machines;
    a.4. Gun boring and turning machines;
    a.5. Gun honing machines of 6 feet (183 cm) stroke or more;
    a.6. Gun jump screw lathes;
    a.7. Gun rifling machines; and
    a.8. Barrel straightening presses.
    b. Jigs and fixtures and other metal-working implements or 
accessories of the kinds exclusively designed for use in the 
manufacture of items in ECCN 0A602 or USML Category II.
    c. Other tooling and equipment, ``specially designed'' for the 
``production'' of items in ECCN 0A602 or USML Category II.
    d. Test and evaluation equipment and test models, including 
diagnostic instrumentation and physical test models, ``specially 
designed'' for items in ECCN 0A602 or USML Category II.

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

0
48. In Supplement No. 1 to part 774, Category 0, remove ECCN 0B986.

0
49. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for ECCNs 0D001 and 0D521, entries for ECCNs 0D501 and 0D505 to 
read as follows:

0D501 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by 0A501 or 0B501.

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except           NS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.
RS applies to entire entry except           RS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.
UN applies to entire entry................  See Sec.   746.1 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)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``software'' in 0D501.

List of Items Controlled

Related Controls: ``Software'' required for and directly related to 
articles enumerated in USML Category I is ``subject to the ITAR''.
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.

0D505 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by 0A505 or 0B505.

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``software'' for commodities  NS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a .and .x.
RS applies to ``software'' for commodities  RS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a and .x.
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to ``software'' for commodities  AT Column 1
 in ECCN 0A505.a, .d, or .x and equipment
 in ECCN 0B505.a, .d, or .x.
 

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

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``software'' in 0D505.

List of Items Controlled

Related Controls: ``Software'' required for and directly related to 
articles enumerated in USML Category III is ``subject to the ITAR''.
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.

0
50. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for ECCNs 0D521 and 0D604, an entry for ECCN 0D602 to read as 
follows:

0D602 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of commodities controlled 
by 0A602 or 0B602 as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

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

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

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0D602.

List of Items Controlled

Related Controls: (1) ``Software'' required for and directly related 
to articles enumerated in USML Category II is ``subject to the 
ITAR''. (2) See ECCN 0A919 for foreign-made ``military commodities'' 
that incorporate more than a de minimis amount of U.S.-origin ``600 
series'' items.

[[Page 4185]]

Related Definitions: N/A
Items: ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCN 0A602 and ECCN 0B602.

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

0
51. In Supplement No. 1 to part 774, Category 0, remove ECCN 0E018.

0
52. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for ECCNs 0E001 and 0E521, entries for ECCNs 0E501, 0E502, 
0E504, and 0E505 to read as follows:

0E501 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, or 
overhaul of commodities controlled by 0A501 or 0B501 as follows (see 
List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

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

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

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``technology'' in ECCN 0E501.

List of Items Controlled

Related Controls: Technical data required for and directly related 
to articles enumerated in USML Category I are ``subject to the 
ITAR.''
Related Definitions: N/A
Items:
    a. ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by ECCN 0A501 (other than 
0A501.y) or 0B501.
    b. ``Technology'' ``required'' for the operation, installation, 
maintenance, repair, or overhaul of commodities controlled by ECCN 
0A501 (other than 0A501.y) or 0B501.

0E502 ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by 0A502.

License Requirements

Reason for Control: CC, UN

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

CIV: N/A
TSR: N/A

List of Items Controlled

Related Controls: Technical data required for and directly related 
to articles enumerated in USML Category I are ``subject to the 
ITAR''.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

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)

CIV: N/A
TSR: N/A

List of Items Controlled

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

0E505 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities controlled by 0A505.

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for            NS Column 1
 ``development,'' ``production,''
 operation, installation, maintenance,
 repair, overhaul, or refurbishing
 commodities in 0A505.a and .x; for
 equipment for those commodities in 0B505;
 and for ``software'' for that equipment
 and those commodities in 0D505.
RS applies to entire entry except           RS Column 1
 ``technology'' for ``development,''
 ``production,'' operation, installation,
 maintenance, repair, overhaul, or
 refurbishing commodities in 0A505.a and
 .x; for equipment for those commodities
 in 0B505 and for ``software'' for those
 commodities and that equipment in 0D505.
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
CC applies to ``technology'' for the        CC Column 1
 ``development'' or ``production'' of
 commodities in 0A505.b.
AT applies to ``technology'' for            AT Column 1
 ``development,'' ``production,''
 operation, installation, maintenance,
 repair, overhaul, or refurbishing
 commodities in 0A505.a, .d, and .x.
 

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

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``technology'' in 0E505.

List of Items Controlled

Related Controls: Technical data required for and directly related 
to articles enumerated in USML Category III are ``subject to the 
ITAR''.
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.

0
53. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for

[[Page 4186]]

ECCNs 0E521 and 0E604, an entry for ECCN 0E602:

0E602 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities controlled by 0A602 or 
0B602, or ``software'' controlled by 0D602 as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

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

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

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0E602.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category II are ``subject to the ITAR.''
Related Definitions: N/A
Items: ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, or 
overhaul of commodities controlled by ECCN 0A602 or 0B602, or 
``software'' controlled by ECCN 0D602.

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

0
54. In Supplement No. 1 to part 774, Category 0, remove ECCN 0E918.

0
55. In Supplement No. 1 to part 774, Category 0, revise ECCN 0E982 to 
read as follows.

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)

CIV: N/A
TSR: N/A

List of Items Controlled

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

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

0
56. In Supplement No. 1 to part 774, Category 0, remove ECCNs 0E984 and 
0E987.

0
57. In Supplement No. 1 to part 774, Category 1, revise ECCN 1A984 to 
read as follows:

1A984 Chemical agents, including tear gas formulation containing 1 
percent or less of orthochlorobenzalmalononitrile (CS), or 1 percent 
or less of chloroacetophenone (CN), except in individual containers 
with a net weight of 20 grams or less; liquid pepper except when 
packaged in individual containers with a net weight of 3 ounces 
(85.05 grams) or less; smoke bombs; non-irritant smoke flares, 
canisters, grenades and charges; and other pyrotechnic articles 
(excluding shotgun shells, unless the shotgun shells contain only 
chemical irritants) having dual military and commercial use, and 
``parts'' and ``components'' ``specially designed'' therefor, n.e.s.

License Requirements

Reason for Control: CC

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

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

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

List of Items Controlled

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

0
58. In Supplement No. 1 to part 774, Category 2, revise ECCN 2B004 to 
read as follows:

2B004 Hot ``isostatic presses'' having all of the characteristics 
described in the list of items controlled, and ``specially 
designed'' ``components'' and ``accessories'' therefor.

License Requirements

Reason for Control: NS, MT NP, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 2
MT applies to entire entry................  MT Column 1
NP applies to entire entry, except          NP Column 1
 2B004.b.3 and presses with maximum
 working pressures below 69 MPa.
AT applies to entire entry................  AT Column 1
 

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

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

List of Items Controlled

Related Controls: (1) See ECCN 2D001 for software for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) For ``specially designed'' dies, 
molds and tooling, see ECCNs 0B501, 0B602, 0B606, 1B003, 9B004, and 
9B009. (4) For additional controls on dies, molds and tooling, see 
ECCNs 1B101.d, 2B104, and 2B204. (5) Also see ECCNs 2B117 and 
2B999.a.
Related Definitions: N/A
Items:

    a. A controlled thermal environment within the closed cavity and 
possessing a chamber cavity with an inside diameter of 406 mm or 
more; and
    b. Having any of the following:
    b.1. A maximum working pressure exceeding 207 MPa;
    b.2. A controlled thermal environment exceeding 1,773 K (1,500 
[deg]C); or
    b.3. A facility for hydrocarbon impregnation and removal of 
resultant gaseous degradation products.

    Technical Note: The inside chamber dimension is that of the 
chamber in which both the working temperature and the working 
pressure are achieved and does not include fixtures. That dimension 
will be the smaller of either the inside diameter of the pressure 
chamber or the inside diameter of the insulated furnace chamber, 
depending on which of the two chambers is located inside the other.

0
59. In Supplement No. 1 to part 774, Category 2, revise ECCN 2B018 to 
read as follows:

2B018 Equipment on the Wassenaar Arrangement Munitions List.

    No commodities currently are controlled by this entry. 
Commodities formerly controlled by paragraphs .a through .d, .m, and 
.s of this entry are controlled in ECCN 0B606. Commodities formerly 
controlled by paragraphs .e through .l of this entry are controlled 
by ECCN 0B602. Commodities formerly controlled by paragraphs .o 
through

[[Page 4187]]

.r of this entry are controlled by ECCN 0B501. Commodities formerly 
controlled by paragraph .n of this entry are controlled in ECCN 
0B501 if they are ``specially designed'' for the ``production'' of 
the items controlled in ECCN 0A501.a through .x or USML Category I 
and controlled in ECCN 0B602 if they are of the kind exclusively 
designed for use in the manufacture of items in ECCN 0A602 or USML 
Category II.

0
60. In Supplement No. 1 to part 774, Category 2, revise ECCN 2D018 to 
read as follows:

2D018 ``Software'' for the ``development,'' ``production,'' or 
``use'' of equipment controlled by 2B018.

    No software is currently controlled under this entry. See ECCNs 
0D501, 0D602, and 0D606 for software formerly controlled under this 
entry.

0
61. In Supplement No. 1 to part 774, Category 2, revise ECCN 2E001 to 
read as follows:

2E001 ``Technology'' according to the General Technology Note for 
the ``development'' of equipment or ``software'' controlled by 2A 
(except 2A983, 2A984, 2A991, or 2A994), 2B (except 2B991, 2B993, 
2B996, 2B997, 2B998, or 2B999), or 2D (except 2D983, 2D984, 2D991, 
2D992, or 2D994).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for items      NS Column 1
 controlled by 2A001, 2B001 to 2B009,
 2D001 or 2D002.
MT applies to ``technology'' for items      MT Column 1
 controlled by 2B004, 2B009, 2B104, 2B105,
 2B109, 2B116, 2B117, 2B119 to 2B122,
 2D001, or 2D101 for MT reasons.
NP applies to ``technology'' for items      NP Column 1
 controlled by 2A225, 2A226, 2B001, 2B004,
 2B006, 2B007, 2B009, 2B104, 2B109, 2B116,
 2B201, 2B204, 2B206, 2B207, 2B209, 2B225
 to 2B233, 2D001, 2D002, 2D101, 2D201, or
 2D202 for NP reasons.
NP applies to ``technology'' for items      NP Column 2
 controlled by 2A290, 2A291, or 2D290 for
 NP reasons.
CB applies to ``technology'' for equipment  CB Column 2
 controlled by 2B350 to 2B352, valves
 controlled by 2A226 having the
 characteristics of those controlled by
 2B350.g, and software controlled by 2D351.
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)

CIV: N/A
TSR: Yes, except N/A for MT

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'' of ``software'' specified in the License Exception 
STA paragraph in the License Exception section of ECCN 2D001 or for 
the ``development'' of equipment as follows: ECCN 2B001 entire 
entry; or ``Numerically controlled'' or manual machine tools as 
specified in 2B003 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 2E101, 2E201, and 2E301
Related Definitions: N/A
Items:

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

     Note 1 to 2E001:  ECCN 2E001 includes ``technology'' for the 
integration of probe systems into coordinate measurement machines 
specified by 2B006.a.

0
62. In Supplement No. 1 to part 774, Category 2, revise ECCN 2E002 to 
read as follows:

2E002 ``Technology'' according to the General Technology Note for 
the ``production'' of equipment controlled by 2A (except 2A983, 
2A984, 2A991, or 2A994), or 2B (except 2B991, 2B993, 2B996, 2B997, 
2B998, or 2B999).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for equipment  NS Column 1
 controlled by 2A001, 2B001 to 2B009.
MT applies to ``technology'' for equipment  MT Column 1
 controlled by 2B004, 2B009, 2B104, 2B105,
 2B109, 2B116, 2B117, or 2B119 to 2B122
 for MT reasons.
NP applies to ``technology'' for equipment  NP Column 1
 controlled by 2A225, 2A226, 2B001, 2B004,
 2B006, 2B007, 2B009, 2B104, 2B109, 2B116,
 2B201, 2B204, 2B206, 2B207, 2B209, 2B225
 to 2B233 for NP reasons.
NP applies to ``technology'' for equipment  NP Column 2
 controlled by 2A290 or 2A291 for NP
 reasons.
CB applies to ``technology'' for equipment  CB Column 2
 Controlled by 2B350 to 2B352 and for
 valves controlled by 2A226 having the
 characteristics of those controlled by
 2B350.g.
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)

CIV: N/A
TSR: Yes, except N/A for MT

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 
``production'' of equipment as follows: ECCN 2B001 entire entry; or 
``Numerically controlled'' or manual machine tools as specified in 
2B003 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: N/A
Related Definitions: N/A
Items:

[[Page 4188]]

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

0
63. In Supplement No. 1 to part 774, Category 7, revise ECCN 7A611 to 
read as follows:

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

License Requirements

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

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

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

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

Special Conditions for STA

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

List of Items Controlled

Related Controls: (1) Military fire control, laser, imaging, and 
guidance equipment that are enumerated in USML Category XII, and 
technical data (including software) directly related thereto, are 
subject to the ITAR. (2) See Related Controls in ECCNs 0A504, 2A984, 
6A002, 6A003, 6A004, 6A005, 6A007, 6A008, 6A107, 7A001, 7A002, 
7A003, 7A005, 7A101, 7A102, and 7A103. (3) See ECCN 3A611 and USML 
Category XI for controls on countermeasure equipment. (4) See ECCN 
0A919 for foreign-made ``military commodities'' that incorporate 
more than a de minimis amount of U.S. origin ``600 series'' 
controlled content.
Related Definitions: N/A
Items:

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

    Dated: January 10, 2020.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2020-00573 Filed 1-17-20; 11:15 am]
 BILLING CODE 3510-33-P