Source: https://www.federalregister.gov/documents/2010/12/10/2010-30994/revisions-to-the-united-states-munitions-list
Timestamp: 2017-02-23 11:47:01
Document Index: 385328418

Matched Legal Cases: ['arts 120', 'arts 730', 'art 774', '§\u2009121', '§\u2009772', '§\u2009121', '§\u2009772', '§\u2009121', '§\u2009772', '§\u2009120', '§\u2009772', '§\u2009120', '§\u2009734', '§\u2009121']

:: Revisions to the United States Munitions List
76935-76940
https://www.federalregister.gov/d/2010-30994
Persons with access to the Internet may also view this ANPRM by searching for its RIN on the U.S. Government regulations Web site at http://regulations.gov/​index.cfm.
The Directorate of Defense Trade Controls (DDTC), U.S. Department of State, administers the International Traffic in Arms Regulations (ITAR) (22 CFR parts 120-130). The items subject to the jurisdiction of the ITAR, i.e., “defense articles,” including related technical data, and “defense services,” are identified on the ITAR's U.S. Munitions List (USML) (22 CFR 121.1). With few exceptions, items that are not subject to the export control jurisdiction of the ITAR are subject to the jurisdiction of the Export Administration Regulations (EAR), 15 CFR Parts 730-774. The Bureau of Industry and Security (BIS), U.S. Department of Commerce, administers the EAR, which include the Commerce Control List (CCL) (15 CFR part 774). The descriptions in many USML categories are general and include design intent as a reason for an item to be controlled. The descriptions in most CCL categories are specific and generally include technical parameters for an item to be controlled.
The U.S. Government has developed a methodology to transition the current control lists to this new structure. This methodology includes guidance on how to articulate the parameters for the items controlled and criteria to be used to screen these items to determine their tier of control. The full draft methodology that was developed for internal use by the U.S. Government was provided to the Department of State's Defense Trade Advisory Group (DTAG) as well as to the Department of Commerce's Technical Advisory Committees as it was being finalized. The full text is not included in this notice, as aspects are beyond the scope of the request for public comment; however, the full text is available for public review on the DDTC Web page at http://www.pmddtc.state.gov/​DTAG/​index.html.
As the U.S. Government continues its work on preparing proposed revisions to the USML, it seeks public input on how best to describe the USML in a positive Start Printed Page 76936manner. U.S. companies, trade associations, and individuals that produce, market, or export USML-controlled defense articles are generally well positioned to describe their articles positively and to provide comments on what are and are not clear descriptions of controls over the articles. Public comment at this stage of the USML review process also ensures that affected industry sectors have the opportunity to contribute and comment on a key element of Export Control Reform.
This notice describes the background to and the process by which the U.S. Government is reviewing and, as appropriate, revising the two primary lists of items it controls—the USML and the CCL. The review and revision are part of Phase II of the broad, three-phased Export Control Reform effort. A summary of the control list work and the three phase reform effort is available at the White House Web page at http://www.whitehouse.gov/​the-press-office/​2010/​08/​30/​president-obama-lays-foundation-a-new-export-control-system-strengthen-n. “Items,” for purposes of this notice, are (a) physical things such as goods, products, materials, commodities, end-items, parts, components, and defense articles; (b) technology and technical data; and (c) software. The types of services and other transactions, licensing policies, and the lists of destinations, end-uses, and end-users that are subject to export controls, and the efforts to review and revise them, will be described in separate documents.
The basic premise of the effort is that if an item type falls within the scope of one of the Criteria's three tiers, the item should be controlled for export, reexport, and in-country transfer at the Start Printed Page 76937level set forth in the licensing policy the U.S. Government is developing for that tier. The licensing policies to be assigned to each tier are still under development but, generally, the highest tier of control will carry the most comprehensive license and compliance requirements.
A. “Equipment, Assemblies, and Components” means any tangible item that falls within the scope of any one of the defined terms in ITAR § 121.8—i.e., “end-item,” “accessory,” “attachment,” “associated equipment,” “component,” or “part”—or “commodity,” as defined in EAR § 772.1, and is not “test, inspection, or production equipment,” as defined for Group B, or “materials,” as defined for Group C.
B. “Test, Inspection, and Production Equipment” means any tangible item that is “specially designed” to test, inspect, produce, or develop any of the types of items defined in ITAR § 121.8 or a “commodity,” as defined in EAR § 772.1. Examples include machine tools, measuring equipment, lithography equipment, tape lay-up machines, templates, jigs, mandrels, moulds, dies, fixtures, and alignment mechanisms.
C. “Material” means any crude or processed matter that is not clearly identifiable as any of the types of items defined in ITAR § 121.8 or a “commodity” that is more broadly defined in EAR § 772.1. Examples Start Printed Page 76938include the alloys, ceramics, prepregs, and raw material out of which parts, components, accessories, attachments, associated equipment, and end-items are made. Examples also include chemicals, toxins, and biological organisms.
E. “Technology” means, when reviewing items that are or should be on the USML, “technical data” as defined in ITAR § 120.10(a)(1). “Technology” means, when reviewing items that are or should be on the CCL, “technology” as defined in EAR § 772.1. “Technology” does not include any information that falls within the scope of “public domain,” as defined in ITAR § 120.11, or is outside the scope of the EAR or “publicly available,” as referenced in EAR §§ 734.3(b)(2) and (b)(3), respectively.
3. Positive List Guideline # 3: Items are not to be listed on both the CCL and the USML unless there are specific technical or other objective criteria—regardless of the reason why any particular item was designed or modified—that distinguish between when an item is USML-controlled and when it is CCL-controlled.Start Printed Page 76939
An implication of this guideline is that if an item is listed on the CCL, an exporter is entitled to conclude that it is EAR-controlled unless there is a specific cross reference in the ECCN to the USML stating that such items that exceed the technical characteristics described in that USML category are ITAR-controlled—even if the item was specifically designed, modified, or intended for use in civil applications. If a cross-reference does not exist, one will be added to recommend consulting both the USML and the CCL for potential controls, particularly in situations where an item exceeds specific technical parameters that could cause it to be USML-controlled.
“For the purposes of this Subchapter, the term “specially designed” means that the end-item, equipment, accessory, attachment, system, component, or part (see ITAR § 121.8) has properties that (i) distinguish it for certain predetermined purposes, (ii) are directly related to the functioning of a defense article, and (iii) are used exclusively or predominantly in or with a defense article identified on the USML.”
Tier 2 defense articles are those that are almost exclusively available from countries that are members of the multilateral export control regimes that control such items and (i) provide a substantial military or intelligence advantage, or (ii) make a substantial contribution to the indigenous development, production, use, or enhancement of a Tier 1 or Tier 2 item.Start Printed Page 76940