Source: https://www.federalregister.gov/documents/2010/06/28/2010-15444/revisions-to-the-export-administration-regulations-based-upon-a-systematic-review-of-the-commerce
Timestamp: 2018-09-24 04:15:07
Document Index: 641479314

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Federal Register :: Revisions to the Export Administration Regulations Based Upon a Systematic Review of the Commerce Control List: Additional Changes
This rule is effective: June 28, 2010. Although there is no formal comment period, public comments on this regulation are welcome on a continuing basis.
75 FR 36511
36511-36516 (6 pages)
Docket No. 090126064-0122-01
0694-AE56
2010-15444
Changes for Greater Consistency in National Security, Regional Stability and Encryption Licensing
https://www.federalregister.gov/d/2010-15444 https://www.federalregister.gov/d/2010-15444
You may submit comments, identified by RIN 0694-AE56, by any of the following methods:
E-mail: publiccomments@bis.doc.gov. Include “RIN 0694-AE56” in the subject line of the message.
Mail or Hand Delivery/Courier: Timothy Mooney, U.S. Department of Commerce, Bureau of Industry and Security, Regulatory Policy Division, 14th St. & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230, Attn: RIN 0694-AE56.
Send comments regarding the collection of information associated with this rule, including suggestions for reducing the burden, to Jasmeet K. Seehra, Office of Management and Budget (OMB), by e-mail to Jasmeet_K._Seehra@omb.eop.gov, or by fax to (202) 395-7285; and to the Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, 14th St. & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230. Comments on this collection of information should be submitted separately from comments on the final rule (i.e., RIN 0694-AE56)—all comments on the latter should be submitted by one of the three methods outlined above.
Timothy Mooney, Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce; by telephone: (202) 482-2440; or by fax: (202) 482-3355.
The revisions to the CCL in this third CCL review rule are divided into three types of revisions: (I) Clarifications to Existing Controls; (II) Eliminating Redundant or Outdated Controls; and (III) Establishing More Focused and Rationalized Controls. The changes in this third CCL review rule are typically additional changes from the 2007 review that required further U.S. Government review and/or interagency discussions before they could be implemented. This rule also makes certain revisions to other parts of the EAR related to the CCL that were recommended during the 2007 CCL review.
In § 734.4(b)(1), this rule adds paragraph (a)(9) of ECCN 5A002 to the list of 5A002 classified commodities that are subject to the special de minimis requirements for certain encryption items. ECCN 5A002.a.9 is controlled for Encryption Items (EI) reasons, so it should be included in paragraph (b)(1) because that paragraph is intended to include all of the “items” paragraphs of 5A002 that are controlled for EI reasons.
In § 734.4 (De minimis U.S. content) paragraph (a)(4) and § 742.14 (Significant items: hot section technology for the development, Start Printed Page 36512production or overhaul of commercial aircraft engines, components and systems) paragraph (a), this rule updates the provisions in these two sections that apply to “items” controlled for Significant Items (SI) reasons in ECCN 9E003 to conform these two sections to the intended paragraphs of ECCN 9E003 (i.e., 9E003.a.1 through a.10 and h). These changes are needed because when 9E003 was revised the related provisions in §§ 734.4(a)(4) and 742.14(a) were not updated (July 12, 2000, 65 FR 43130). This rule updates those provisions to conform to the updates made to the items controlled under 9E003. This rule also makes changes to the SI reason for control under 9E003 to conform that reason for control to the SI items controlled under that ECCN entry, as described below.
In § 740.7 (Computers (APP)) under paragraph (b)(2)(i)(Computers and software), this rule removes and reserves this paragraph because the restrictions refer to a supplement of the EAR that is currently reserved. Supplement No. 3 to part 742 was removed and reserved in the EAR on April 24, 2006 (71 FR 20876). Paragraph (b)(2)(i) is also reserved because restricting physical access to areas housing the computer is no longer necessary in protecting U.S. export control interests in a distributed computing environment.
Also in § 740.7, this rule revises the Weighted TeraFLOPS (WT) level in paragraphs (c)(3)(ii) from 0.1 WT to 0.5 WT. This change is being made to address advances in technology levels that justify an adjustment for what level of “development” and “production” technology and source code should be authorized under these provisions of License Exception APP.
In § 772.1 (Definitions of terms as used in the Export Administration Regulations (EAR)), this rule revises the definition of “reasons for control” to conform that definition to the reasons for control listed in § 738.2(d)(2)(i)(A) of the EAR. Specifically, this rule removes the control “High Performance Computers (XP)” because that control is no longer in the EAR, and adds five reasons for control that were in the EAR but were not included in the “reasons for control” definition prior to this rule being published. Specifically, this rule adds “Chemical Weapons Convention (CW)”, “Encryption Items (EI)”, “Firearms Convention (FC)”, “Significant Items (SI)”, and “Surreptitious Listening (SL)” to the “reasons for control” definition.
This rule makes various substantive revisions to the CCL, divided below into three types of revisions: (I) Clarifications to Existing Controls; (II) Eliminating Redundant or Outdated Controls; and (III) Establishing More Focused and Rationalized Controls.
1. Revisions to the “headings” of existing CCL entries.
2. Revisions to “Items” paragraphs in CCL entries. This rule makes revisions to the “Items” paragraphs under two (2) CCL entries, 4E993 and 9A991, to provide greater clarity regarding the items controlled under those CCL entries. Specifically, these revisions include the following:
3. Clarifications to “Items” paragraphs to conform to multilateral regimes. This action revises the “items” paragraphs in two (2) CCL entries, 8A018 and 9A018, to clarify what items are controlled under those entries and to better conform those entries to the language used in multilateral control lists, such as the IML.
ECCN 9A018 is amended by revising paragraphs (c) and (d) of the “items” paragraphs to clarify the items controlled under this CCL entry. Specifically, under paragraph (c) this rule adds quotes around the term “aircraft” and removes the phrase “and helicopters,” to conform to IML 10.f. Under paragraph (d), this rule adds quotes around the term “aircraft” and Start Printed Page 36513removes the term “helicopter” to conform to IML 10.f. This rule also removes the reference to helicopters under paragraphs (c) and (d) because the definition of “aircraft” includes helicopters, so helicopters do not need to be specifically identified in the control parameter. This rule also removes “parts, attachments” under paragraph (f) to conform to IML 14.
4. Other assorted clarifications to existing controls.
ECCN 9E003 is amended by revising the SI control under the “License Requirements” section to conform the SI reason for control to the hot section technology for the development, production or overhaul of commercial aircraft engines, components and systems that are currently controlled in the “items” paragraphs of ECCN 9E003 (i.e., 9E003.a.1 through a.10 and h). These changes are needed because when the “items” paragraph of ECCN 9E003 was amended on July 12, 2000 (65 FR 43130), the conforming change to the SI reason for control in that same ECCN entry was not updated. This rule updates this ECCN's SI license requirement to conform to the previous updates made to ECCN 9E003. This rule also makes conforming changes to §§ 734.4(a)(4) and 742.14(a) to conform to these same changes in 9E003, as described above.
ECCN 3A992 is amended by removing License Exception LVS eligibility for Syria. Syria is not eligible to receive commodities authorized by License Exception LVS under the EAR. This rule clarifies Syria's ineligibility by revising the LVS paragraph in the License Exceptions section of this ECCN to make it N/A.
In Supplement No. 1 to part 738 (Commerce Country Chart), this rule removes the license requirement for Regional Stability (RS 2) from Austria, Finland, Ireland, Sweden and Switzerland (i.e., this rule removes the “X” in the box in the RS 2 column for these five destinations). This change is made to create more consistency in what destinations require a license for RS column 2, NS column 2, and countries listed in Supplement No. 3 to part 740 (License Exception ENC Favorable Treatment Countries). Thirty-seven countries are in one of these three groupings. Twenty-four of the thirty-seven are in all three groupings (i.e., these destinations do not require a license for RS column 2, NS column 2 and are listed in Supplement No. 3 to part 740). Nine of these thirty-seven countries require a license for RS column 2. Austria, Finland, Ireland, Sweden, and Switzerland all require a license for RS column 2 even though these countries are in Supplement No. 3 to Part 740 and do not require a license for NS column 2 reasons. Because these five countries are the only five countries that are listed in Supplement No. 3 to Part 740 and also do not require a license for NS column 2 reasons, these countries were the most appropriate destinations to remove the RS 2 license requirement from in order to create greater uniformity in these license requirements. This change is also made because Austria, Finland, Ireland, Sweden and Switzerland are not countries that contribute to regional instability that would be contrary to the foreign policy interests of the United States.
Removing the RS column 2 license requirement that applied to these countries is consistent with the stated purpose of regional stability controls in § 742.6(b), which is to prevent “export[s] or reexport[s] that could contribute directly or indirectly to any country's military capability in a manner that would alter or destabilize a region's military balance contrary to the foreign policy interests of the United States.” This removal raises the number of countries that are in all three groups from 24 to 29 and creates more consistency in these EAR license requirements.
Shipments of items removed from eligibility for a License Exception or export or reexport without a license (NLR) as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route aboard a carrier to a port of export or reexport, on June 28, 2010, pursuant to actual orders for export or reexport to a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export or reexport NLR so long as they are exported or reexported July 28, 2010. Any such items not actually Start Printed Page 36514exported or reexported before midnight, on July 28, 2010, require a license in accordance with this rule.
5. The other changes made under this rule are nonsubstantive changes that would not meet the criteria noted in the preceding paragraph. For these nonsubstantive changes described in this paragraph, the Department of Commerce finds that there is good cause under 5 U.S.C. 553(b)(B) to waive the provisions of the Administrative Procedure Act requiring prior notice and the opportunity for public comment because they are unnecessary and contrary to the public interest. The changes made by this rule described under this paragraph are not substantive changes, but rather are clarifications to existing controls. These nonsubstantive changes are described under Part I: Clarifications to Existing Controls in the Background section of this rule. These nonsubstantive changes include: revisions to the headings of existing CCL entries; and removal of an outdated “Related Controls” reference in one CCL entry. This rule does not alter any right, obligation or prohibition that applies to any person under the Export Administration Regulations (EAR). Additionally, if the previous rules were left in place, public confusion may result because the rules would refer to outdated references and headings. Because these revisions are not substantive changes, it is unnecessary to provide notice and opportunity for public comment. In addition, the 30-day delay in effectiveness required by 5 U.S.C. 553(d) is not applicable because this rule is not a substantive rule.
Accordingly, parts 734, 738, 740, 742, 772 and 774 of the Export Administration Regulations (
(4) There is no de minimis level for U.S.-origin technology controlled by ECCN 9E003a.1 through a.10, and .h, when redrawn, used, consulted, or otherwise commingled abroad.
4. Supplement No. 1 to part 738 (Commerce Country Chart), is amended by removing the “X” in the RS 2 column under the Regional Stability column for the countries of “Austria”, “Finland”, “Ireland”, “Sweden”, and “Switzerland”.
6. Section 740.7 is amended:
a. By removing and reserving paragraph (b)(2)(i); and
b. By revising paragraphs (c)(3)(ii) and (c)(3)(iii), to read as follows:
(3) * * *Start Printed Page 36515
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Notice of August 13, 2009, 74 FR 41325 (August 14, 2009); Notice of November 6, 2009, 74 FR 58187 (November 10, 2009).
12. In Supplement No. 1 to part 774 (the Commerce Control List), Category 0—Nuclear Materials, Facilities, and Equipment (and Miscellaneous Items), Export Control Classification Number (ECCN) 0E018 is amended by revising the heading, to read as follows:
0E018 “Technology” for the “development”, “production”, or “use” of items controlled by 0A018:
13. In Supplement No. 1 to part 774 (the Commerce Control List), Category 3—Electronics, Export Control Classification Number (ECCN) 3A992 is amended by revising the LVS paragraph in the License Exceptions section, to read as follows:
14. In Supplement No. 1 to part 774 (the Commerce Control List), Category 4—Computers, Export Control Classification Number (ECCN) 4A003 is amended by revising the AT control(s) paragraph in the License Requirements section, to read as follows:
4A003 “Digital computers,” “electronic assemblies,” and related equipment therefor, as follows, and specially designed components therefor.
AT applies to entire entry (refer to 4A994 for controls on “digital computers” with a APP >0.0128 but ≤ to 0.75 WT) AT Column 1
15. In Supplement No. 1 to part 774 (the Commerce Control List), Category 4—Computers, Export Control Classification Number (ECCN) 4A994 is amended by removing the definition in the Related Definitions paragraph in the List of Items Controlled section and adding “N/A” in its place.
16. In Supplement No. 1 to part 774 (the Commerce Control List), Category 4—Computers, is amended by removing Export Control Classification Numbers (ECCN) 4B994 and 4C994 and reserving “B. Test Inspection and Production Equipment” and “C. Materials”.
17. In Supplement No. 1 to part 774 (the Commerce Control List), Category 4—Computers, Export Control Classification Number (ECCN) 4E992 is amended by revising the heading to read as follows:
4E992 “Technology” other than that controlled in 4E001 for the “development,” “production,” or “use” of equipment controlled by 4A994, or “software” controlled by 4D993 or 4D994.
18. In Supplement No. 1 to part 774 (the Commerce Control List), Category 4—Computers, Export Control Classification Number (ECCN) 4E993 is amended:
4E993 “Technology” for the “development” or “production” of equipment designed for “multi-data-stream processing.”
Start Printed Page 36516
19. In Supplement No. 1 to part 774 (the Commerce Control List), Category 5—Telecommunications and “Information Security,” Part 1 Telecommunications, Export Control Classification Number (ECCN) 5A001 is amended by revising the Technical Notes (2) to paragraph (b)(6) of the “items” paragraph in List of Items Controlled section, to read as follows:
20. In Supplement No. 1 to part 774 (the Commerce Control List), Category 7—Navigation and Avionics, Export Control Classification Number (ECCN) 7A008 is amended by revising the License Exceptions section, to read as follows:
7A008 Underwater sonar navigation systems, using Doppler velocity or correlation velocity logs integrated with a heading source and having a positioning accuracy of equal to or less (better) than 3% of distance traveled “Circular Error Probable” (“CEP”), and specially designed components therefor.
21. In Supplement No. 1 to part 774 (the Commerce Control List), Category 8—Marine, Export Control Classification Number (ECCN) 8A018 is amended by revising paragraph (b) of the “items” paragraph in the List of Items Controlled section, to read as follows:
22. In Supplement No. 1 to part 774 (the Commerce Control List), Category 9—Propulsion Systems, Space Vehicles and Related Equipment, Export Control Classification Number (ECCN) 9A018 is amended by revising paragraphs (c),(d) and (f) of the “items” paragraph in the List of Items Controlled section, to read as follows:
23. In Supplement No. 1 to part 774 (the Commerce Control List), Category 9—Aerospace and Propulsion, Export Control Classification Number (ECCN) 9A991 is amended:
a. By revising “items” paragraph (b) in the List of Items Controlled section; and
b. By revising “items” paragraph (c) in the List of Items Controlled section and the note to paragraph (c), to read as follows:
24. In Supplement No. 1 to part 774 (The Commerce Control List), Category 9—Aerospace and Propulsion, Export Control Classification Number (ECCN) 9E003 is amended by revising the “Control(s)” paragraph in the License Requirements section, to read as follows:
Reason for Control: NS, SI, AT
SI applies to 9E003.a.1 through a.10, and h. See § 742.14 of the EAR for additional information
[FR Doc. 2010-15444 Filed 6-25-10; 8:45 am]