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àà€@ll4(#àBilling€Code:€3510„33„PÓÓˆÌÌDEPARTMENT€OF€COMMERCEÌÌBureau€of€Export€AdministrationÌÌ15€CFR€Parts€732,€740,€743,€748,€750,€752,€758,€762,€772,€and€774Ì€Ì[Docket€œNo.€990709186„0128„02]›ÌÌRIN€€0694„AB88ÌÌParties€to€a€Transaction€and€their€Responsibilities,€Routed€Export€Transactions,€Shipperððs€ExportÏDeclarations,€the€Automated€Export€System€(AES),€and€Export€ClearanceÌÌAGENCY:€€Bureau€of€Export€Administration,€CommerceÌÌACTION:€Final.ÌÌSUMMARY:€The€Bureau€of€Export€Administration€is€revising€the€Export€AdministrationÏRegulations€(EAR)€to€clarify€the€responsibilities€of€parties€to€export€and€reexport€transactions,Ïthe€filing€and€use€of€Shipperððs€Export€Declarations,€Destination€Control€Statement€requirements,Ïand€other€export€clearance€issues.€€In€addition,€this€rule€adds€information€about€the€scope€andÐ ð-@), Ðrequirements€for€the€Automated€Export€System€(AES)€Option€4€provision.ÌÌññÖ€2ÿÿÖññññÖ€ÿÿÖññDATES:€€€òòEffective€dateóó:€€This€rule€is€effective€[INSERT€DATE€OF€PUBLICATION].Ð  À Ðà  àòòGrace€periodóó:€A€90€day€grace€period€will€apply€to€the€requirements€set€forth€in€this€rule.€Ð ø   ÐDuring€the€grace€period,€Shipperððs€Export€Declarations€will€be€accepted€with€information€thatÏcomplies€with€the€rules€prior€to€[INSERT€DATE€OF€PUBLICATION].ÌÌÌÌFOR€FURTHER€INFORMATION€CONTACT:€Sharron€Cook,€Regulatory€Policy€Division,ÏBureau€of€Export€Administration,€at€(202)€482„2440.ÌÌÔ‡5X~òXXXÔFor€additional€information€on€the€AES€in€general,€please€contact:€Ð Ø€ ÐC.€Harvey€Monk,€ÌChief€Foreign€Trade€Division€ÌU.S.€Census€Bureau€Ì(301)€457„2255Ìfax€(301)€457€„2645Ìe„mail:€c.harvey.monk.jr@census.gov€ÌÌFor€information€about€obtaining€BXA€approval€to€use€AES€Option€4€for€items€subject€to€theÐ Ø,€%( ÐEAR,€contact:ÌTom€œAndrukonis€or€Donald€Lyles›ÌDirector,€Office€of€Enforcement€AnalysisÌBureau€of€Export€AdministrationÌ(202)€482„4255Ìfax€(202)€482„0971Ìe„mail:€tandruko@bxa.doc.govÌÔ#†X~òXX5X~òñ#ÔÌSUPPLEMENTARY€INFORMATIONÌBackgroundÌÔ‡X~òXXX~òÔThe€Bureau€of€Export€Administration€(BXA)€is€amending€the€Export€Administration€RegulationsÐ À Ð(EAR)€in€order€to€simplify€and€clarify€the€export€clearance€process€and€facilitate€compliance.€ÏThe€amendment€Ô#†X~òXXX~òa #Ôpromotes€flexibility€so€that€parties€to€transactions€subject€to€the€EAR€mayР؀ Ðstructure€their€transactions€freely,€consistent€with€national€security€and€foreign€policy€objectives.ÌÌIn€this€final€rule,€BXA€defines€new€terms,€including€ð ðprincipal€parties€in€interestðð,€ð ðrouted€exportÏtransactionðð,€and€ð ðend„userðð,€and€clarifies€existing€ones€(notably€the€definition€of€ð ðexporterðð).€ÏThe€amendments€ensure€that€for€every€transaction€subject€to€the€EAR,€some€party€to€theÏtransaction€is€clearly€responsible€for€determining€licensing€authority€(License,€LicenseÏException,€or€NLR),€and€for€obtaining€the€appropriate€license€or€other€authorization.€€TheÏamendments€also€encourage€communication€among€all€parties€to€a€transaction€to€ensure€that€eachÐ Ø,€%( Ðparty€knows€its€responsibilities€in€order€to€comply€with€the€EAR.ÌÌFor€export€control€purposes€the€exporter€has€generally€been€the€seller.€€An€export€transaction,Ïhowever,€has€two€principal€parties€in€interest:€€a€U.S.€party€and€a€foreign€party€„„€usually€theÏseller€and€the€buyer.€€In€a€ð ðrouted€export€transaction,ðð€the€foreign€principal€party€in€interestÏagrees€to€terms€of€sale€that€may€include€assuming€responsibility€for€export€licensing.€€This€ruleÏprovides€that€when€the€foreign€principal€party€expressly€assumes€responsibility€in€writing€forÏdetermining€license€requirements€and€obtaining€necessary€authorization,€that€foreign€party€mustÏhave€a€U.S.€agent€who€becomes€the€ð ðexporterðð€for€export€control€purposes.€€Without€such€aÏwritten€undertaking€by€the€foreign€principal,€the€U.S.€principal€is€the€exporter,€with€all€attendantÏresponsibilities.ÌÌIn€addition€to€clarifying€export€licensing€responsibilities,€this€rule€institutes€a€requirement€thatÏthe€export€licensee€communicate€license€conditions€to€those€parties€to€whom€conditions€applyÏand,€when€required€by€the€license,€obtain€written€acknowledgment€of€receipt€of€the€conditions.€ÏThis€new€provision€is€part€of€BXAððs€License€and€Enforcement€Action€Program€(LEAP),€which€isÏdesigned€to€enhance€compliance€with€the€EAR.ÌÌIn€addition,€these€amendments€significantly€revise€the€first€six€sections€of€Part€758€of€the€EARÏby€reorganizing,€streamlining€and€clarifying€necessary€provisions€while€deleting€unnecessary€orÏredundant€provisions.€€Section€758.1€consolidates€into€one€section€the€export€control„relatedÐ Ø,€%( Ðprovisions€pertaining€to€the€SED€or€AES€record.€€In€consolidating€these€provisions€into€oneÏsection,€BXA€has€eliminated€those€that€are€already€contained€in€the€FTSR,€or€that€were€otherwiseÏunrelated€to€export€controls.€€Section€758.2€provides€new€rules€for€BXAððs€AES€Option€4Ïapproval€process.€€Commenters€asked€that€this€be€added€to€the€final€regulation.€€Section€758.3Ïclarifies€and€consolidates€provisions€relating€to€the€responsibilities€of€the€parties,€and€ðð758.4Ïconsolidates,€but€does€not€significantly€change,€provisions€concerning€the€use€of€an€exportÏlicense.€€Section€758.4,€which€contained€very€specific€provisions€relating€to€conformity€ofÏdocuments,€has€been€greatly€simplified€in€the€interest€of€flexibility,€and€moved€to€section€758.5.€ÏFormer€sections€758.5€(general€destination€control€requirements)€and€ðð758.6€(destination€controlÏstatement)€have€been€combined€and€reduced€to€one€paragraph€at€ðð758.6.€ÌÌLastly,€section€762.7€is€amended€to€add€language€that€clarifies€that€BXA€has€legal€authority€toÏissue€subpoenas€requiring€individuals€to€appear€and€testify€during€the€investigatory€phase€of€anÏexport€case.€€The€authority€for€this€is€found€in€both€the€Export€Administration€Act€of€1979€inÏsection€12(a)(1),€and€in€the€International€Emergency€Economic€Powers€Act€in€section€1702(a)(2).ÌÌÔ‡X~òXXX~òÔà  àThe€Census€Bureau€initially€published€a€notice€of€proposed€rulemaking€as€to€who€goes€inÐ X%  Ðblock€1(a)€of€the€SED€in€the€òòFederal€Registeróó€on€August€6,€1998€(63€FR€41979).€€As€a€result€ofÐ 8'à" Ðcomments€received€on€that€proposed€rulemaking€and€subsequent€discussions€with€the€Bureau€ofÏExport€Administration€(BXA),€the€Census€Bureau€decided€to€issue€a€supplementary€notice€ofÏproposed€rulemaking€to€address€the€issues€raised€during€the€comment€period€and€to€furtherÐ Ø,€%( Ðclarify€provisions€contained€in€that€notice€of€proposed€rulemaking.€€The€Census€BureauÏpublished€a€supplementary€notice€of€proposed€¢rulemaking£€in€the€òòFederal€Registeróó€on€October€4,Ð 8 à Ð1999€(64€FR€53861).€€¢BXA£€also€published€a€notice€of€proposed€¢rulemaking£€in€the€òòFederalÐ  À ÐRegisteróó€on€October€4,€1999€€(64€FR€53854)€revising€the€Export€Administration€RegulationsÐ ø   Ð(EAR)€regarding€the€responsibilities€of€the€parties€to€an€export€transaction,€routed€exportÏtransactions,€Shipperððs€Export€Declarations,€and€export€clearance.€€Before€and€after€theÏpublication€of€those€notices€in€the€òòFederal€Registeróó,€both€the€Census€Bureau€and€¢BXA£Ð ˜@  Ðparticipated€in€numerous€meetings,€conferences,€and€seminars€with€the€trade€community€to€gainÏan€understanding€of€business€issues,€and€to€more€clearly€explain€the€provisions€of€the€proposedÏrules.€¢ÌÔ#†X~òXXX~ò#ÔÔ‡X~òXXX~òÔÌÓ*°,X°‚,` ˜X°œX*Óò òResponse€to€Comments€ó óÐ ø  Ðà Ü àBXA€received€twenty„eight€(28)€comments€on€the€notice€of€proposed€rulemaking€publishedÏin€the€òòFederal€Registeróó€on€October€4,€1999€(64€FR€53861).€€BXA€revised€certain€provisions€inÐ ¸` Ðthe€final€rule€to€address€the€concerns€of€the€respondents€and€to€more€clearly€explain€theÏrequirements.€€The€major€concerns€addressed€in€the€comments€and€BXAððs€response€are€asÏfollows:ÌÌà Ü à1.€€òòRequirement€to€put€the€Export€Control€Classification€Number€(ECCN)€on€the€SED€orÐ )À!$ ÐAES€record€whenever€exporting€an€item€that€is€listed€on€the€Commerce€Control€List.óó€Ð ø* #& ÐCommenters€expressed€concern¢£€this€requirement€would€be€very€burdensome.€These€commentersÐ Ø,€%( Ðexplained€the€greater€€administrative€burden€in€terms€of€having€to€report€ECCNs€subject€only€toÏAnti„terrorism€(AT)€controls€even€when€the€ultimate€destination€is€a€non„terrorism€supportingÏcountry.€€BXA€also€received€comments€supporting€the€proposed€ECCN€requirement,€because€ofÏthe€vital€importance€of€the€ECCN€bothÔ#†X~òXXX~ò#ÔÔ‡X~òXXX~òÔ€to€Government€agencies€such€as€the€U.S.€CustomsÐ ø   ÐService,€and€to€the€business€community€as€a€foundation€for€making€correct€licenseÏdeterminations.€€In€fact,€one€company€suggested€that€BXA€expand€the€requirement€to€includeÏrequiring€the€ECCN€on€the€invoice€and€bill€of€lading€in€order€to€provide€information€to€theÏforeign€principal€for€reexport€purposes.€€In€response€to€the€comments,€BXA€narrowed€the€scopeÏof€the€ECCN€requirement€in€the€final€rule€so€that€exporters€only€have€to€report€the€ECCN€on€theÏSED€or€AES€record€for€items€exported€under€a€license€orÔ#†X~òXXX~òÑ##Ô€License€Exception,€€and€ð ðNo€LicenseÐ 8à ÐRequiredðð€(NLR)€shipments€of€items€having€a€reason€for€control€other€than€anti„terrorism€(AT).ÏThe€only€exception€to€this€requirement€would€be€for€items€temporarily€in€the€United€StatesÏmeeting€the€provisions€of€License€Exception€TMP,€under€ðð740.9(b)(3)€of€the€EAR.Ô‡X~òXXX~òÔР؀ ÐÌà Ü à2.€€òòClarify€the€writing€required€from€the€foreign€principal€party€in€interest€in€routedÐ ˜!@ Ðtransactions€to€permit€its€agent€to€become€the€ð ðexporteróó.ððSome€commenters€wanted€clarificationÐ x#  Ðas€to€what€the€writing€should€include.€€Others€wanted€to€know€if€the€Incoterm€ð ðEXWðð€would€beÏsufficient€for€the€writing.€€One€commenter€expressed€support€for€an€express€writing,€as€opposedÏto€Incoterms,€because€of€the€lack€of€understanding€of€the€Incoterms€among€small€and€mediumÏsize€exporters,€who€typically€hire€clerks€to€comply€with€export€regulations.€€In€response€to€theseÏconcerns,€BXA€has€included€in€this€preamble€an€example€of€an€acceptable€writing.€€This€exampleÐ Ø,€%( Ðis€similar€to€the€language€that€describes€the€buyerððs€responsibiltiy€for€export€licenses€in€theÏIncoterms€2000€publication.€€BXAððs€sample€writing€would€be€signed€by€the€foreign€principalÏparty€in€interest,€and€reads,€ð ðI€undertake€to€determine€any€export€license€requirements,€to€obtainÏany€export€license€or€other€official€authorization,€and€to€carry€out€any€customs€formalities€for€theÏexport€of€the€goods.ðð€€€This€is€just€an€example€of€a€writing.€€No€doubt€the€exporting€communityÏwill€use€good€judgement€in€determining€the€extensiveness€of€the€writing€it€chooses€to€use,€byÏconsidering€the€strategic€applications€and€capabilities€of€the€item€being€exported,€its€level€ofÏrelationship€with€the€foreign€principal€party€in€interest,€and€the€foreign€principalððs€knowledge€ofÏU.S.€export€laws.€€€The€format€or€language€is€not€the€most€important€part€of€the€writingÏrequirement.€€The€most€important€aspect€of€the€writing€is€that€it€reflects€an€agreement€betweenÏthe€principals€concerning€their€specific€roles€in€determining€the€license€requirements€andÏobtaining€any€license€that€is€required.€€ÌÌSome€specific€questions€were€submitted€by€some€commenters€about€the€writing.€€ÌÌà Ü à1.€€òòQuestionóó:€May€one€writing€cover€multiple€transactions€between€the€same€principals?€€Ð x#  ÐòòÌAnsweróó:€Yes,€and€this€has€been€clarified€in€this€final€rule.Ð 8'à" ÐÌà Ü à2.Ô#†X~òXXX~ò¡'#ÔÔ‡X~òXXX~òÔ€€òòQuestionóó:€€In€a€routed€transaction€that€is€supported€by€an€assumption€of€responsibility€inÐ ø* #& Ðwriting,Ô#†X~òXXX~òn0#ÔÔ‡X~òXXX~òÔ€must€the€U.S.€principal€party€in€interest€also€obtain€a€writing€from€the€U.S.€agent€of€theÐ Ø,€%( Ðforeign€principal€party€in€interestÔ#†X~òXXX~ò/1#ÔÔ‡X~òXXX~òÔ€stating€that€the€agent€has€assumed€export€complianceÐ X Ðresponsibilities€on€behalf€of€the€foreign€principal€party€in€interestÔ#†X~òXXX~ò2#ÔÔ‡X~òXXX~òÔ?€Ð 8 à ÐÌòòAnsweróó:€While€the€EAR€do€not€require€the€U.S.€principal€party€in€interest€to€obtain€a€writingÐ ø   Ðfrom€the€agent€to€establish€its€export€compliance€role,€it€would€be€a€good€business€practice€toÏconfirm€the€agentððs€responsibilities.ÌÌà Ü à3.€€òòThe€liability€of€the€U.S.€principal€party€in€interest€when€complying€with€the€informationÐ x  Ðsharing€requirement.óó€€Several€commenters€were€concerned€about€the€liability€that€may€accrue€toÐ X Ðthe€U.S.€principal€party€in€interest€in€a€routed€transaction€when€it€gives€the€foreign€principal€partyÏin€interest€or€its€agent€the€Export€Control€Classification€Number€(ECCN),€technicalÏspecifications€of€an€item,€or€other€information€related€to€license€determination.€€This€final€ruleÏdoes€not€change€the€current€standards€of€liability€as€they€apply€to€provision€of€information.€€TheÏforeign€principal€party€in€interest€or€its€authorized€agent€is€responsible€for€ensuring€that€theÏexport€complies€with€all€applicable€requirements€of€the€EAR,€including,€as€necessary,€theÏaccuracy€of€the€product€classification.€€If€the€foreign€principal€party€in€interest€has€reason€toÏdoubt€the€accuracy€of€the€ECCN€provided,€is€unclear€about€the€classification€of€the€item€based€onÏthe€technical€specifications€provided€or€has€questions€about€any€other€aspect€of€export€controlÏrequirements,€the€foreign€principal€party€in€interest€must€make€inquiries€and€take€appropriateÏaction€to€ensure€compliance€with€the€EAR.Ô#†X~òXXX~òÕ2#ÔÔ‡X~òXXX~òÔÐ ø* #& ÐÐ Ø,€%( Ðà Ü àSome€companies€expressed€concern€about€requests€for€information€that€is€readily€availableÏfrom€other€sources,€proprietary,€not€in€the€possession€of€the€U.S.€principal€party€in€interest,€or€notÏavailable.€€In€addition€to€the€availability€concern,€some€companies€were€concerned€about€the€costÏof€complying€with€information€sharing€requests.€€BXA€has€not€made€any€changes€in€the€final€ruleÏin€this€regard,€as€the€U.S.€principal€is€generally€in€a€better€position€to€obtain€the€ECCN€orÏtechnical€specifications€than€the€foreign€principal€or€its€agent.€€Ô#†X~òXXX~ò9#ÔÔ‡X~òXXX~òÔ€There€is€no€requirement€to€goÐ ¸`  Ðbeyond€the€information€necessary€to€classify€the€item€according€to€the€technical€parameters€ofÏthe€CCL.€€BXA€believes€that€all€these€concerns€are€better€dealt€with€in€the€business€environmentÏamong€the€principals,€rather€than€by€regulation.€€ÌÌà Ü à4.€€òòRequirement€for€the€licensee€to€obtain€written€acknowledgment€of€license€conditions,Ð À Ðwhen€it€is€required€per€condition€on€the€license.óó€€Some€companies€are€concerned€that€BXAÐ ø  Ðlicensing€officers€will€overuse€this€condition.€€€Several€individuals€suggested€a€notificationÏrequirement€instead€of€a€notification€and€acknowledgment€combination.€€€€The€practice€ofÏincluding€a€condition€for€the€licensee€to€notify€a€particular€party€or€parties€of€the€conditions€on€aÏlicense€or€in€some€case€obtain€an€acknowledgment€of€this€notification€has€been€in€use€for€manyÏyears€by€BXA.€€This€rule€simply€adds€the€practice€to€the€regulations,€for€transparency.€ÌÌà Ü àOne€individual€expressed€concern€that€it€would€be€unclear€as€to€what€constitutes€complianceÏif€the€licensee€were€required€to€notify€all€end„users€of€conditions€in€a€situation€where€the€ultimateÏconsignee€was€a€distributor.€€€Applicants€must€remember€that€conditions€may€be€negotiatedÐ Ø,€%( Ðbetween€BXA€and€the€applicant.€€Moreover,€if€an€applicant€receives€a€license,€but€is€notÏcomfortable€with€the€conditions,€the€applicant€may€choose€not€to€proceed€with€the€transaction.€œññÔ% €> Ôññ›ÌÌà Ü à5.€òòEffective€date€of€publication.óó€€There€is€some€industry€concern€¢£about€the€effective€date€ofÐ ø   Ðthese€provisions,€as€it€may€take€some€time€to€reprogram€automated€processes,€€provide€training€toÏpersonnel,€and€create€new€compliance€procedures€within€export€management€systems.€€€BXAÏbelieves€that€a€90€day€ð ðgrace€periodðð€will€give€adequate€time€to€the€exporting€community€toÏensure€compliance€with€the€rules€set€forth€in€this€regulation.ÌÌà Ü à6.€€òòClarify€conformity€of€documents€provisionsóó.€Several€commenters€stated€their€belief€thatÐ 8à ÐBXAððs€new€definition€of€ð ðexporterðð,€coupled€with€the€Bureau€of€Censusðð€new€requirement€forÏthe€U.S.€principal€party€in€interest€to€be€placed€in€block€1(a)€of€the€SED€or€in€the€ð ðexporterððÏblock€of€the€AES€record,€was€confusing€to€some€commenters.€€They€expressed€concern€over€theÏfact€the€ð ðexporterðð€for€EAR€purposes€may€not€be€the€person€in€the€ð ðexporterðð€block€of€the€SEDÏor€AES€record.€€Ô#†X~òXXX~ò¬;#ÔÔ‡X~òXXX~òÔ€€€Some€commenters€came€to€the€conclusion€that€the€different€definitions€ofÐ ˜!@ Ðð ðexporterðð€might€impact€the€conformity€of€documents€requirement€contained€in€ðð758.5(b)€of€theÏEAR.€€To€alleviate€the€confusion€and€the€conformity€of€document€conflict€caused€by€BXAððs€andÏCensusðð€different€definitions€of€the€term€ð ðexporter,ðð€Census€will€be€revising€the€SED€and€AESÏrecord€to€remove€the€term€ð ðexporterðð€from€blocks€1a,€1b,€and€the€AES€record,€and€replacing€itÏwith€the€term€ð ðU.S.€Principal€Party€in€Interest.ððÔ#†X~òXXX~òîE#ÔÐ ø* #& ÐÐ Ø,€%( ÐAlthough€the€Export€Administration€Act€(EAA)€expired€on€August€20,€1994,€the€PresidentÏinvoked€the€International€Emergency€Economic€Powers€Act€and€continued€in€effect€the€EAR,Ïand,€to€the€extent€permitted€by€law,€the€provisions€of€the€EAA€in€Executive€Order€12924€ofÏAugust€19,€1994,€extended€by€Presidential€notice€of€August€10,€1999€(64€FR€44101)€(August€13,Ï1999.)ÌÌRulemaking€RequirementsÌÌà Ü àÔ‡X~òXXX~òÔ1.€€This€final€rule€has€been€determined€to€be€significant€for€purposes€of€E.O.€12866.Ð X ÐÌà Ü à2.€€Ô#†X~òXXX~òJ#ÔThis€rule€involves€collections€that€have€been€approved€by€the€Office€of€Management€andÐ À ÐBudget€under€control€numbers€0694„0038,€and€0694„0096.€€This€rule€contains€collections€thatÏhave€been€approved€by€the€Office€of€Management€and€Budget€under€control€numbers:€0607„¼0152,€0694„0040,€0694„0094,€0694„0095,€0694„0097,€0694„0088,€and€0694„0120.Ô‡X~òXXX~òÔÐ ¸` ÐNotwithstanding€any€other€provision€of€law,€no€person€is€required€to€respond€nor€shall€anyÏperson€be€subject€to€a€penalty€for€failure€to€comply€with,€a€collection€of€information€subject€toÏthe€requirements€of€the€Paperwork€Reduction€Act,€unless€that€collection€of€information€displaysÏa€currently€valid€OMB€Control€Number.€ÌÌà Ü à3.€€This€rule€does€not€contain€policies€with€Federalism€implications€sufficient€to€warrantÏpreparation€of€a€Federalism€assessment€under€Executive€Order€13132.Ð Ø,€%( Їà Ü à4.€€The€provisions€of€the€Administrative€Procedure€Act€(5€U.S.C.€553)€requiring€notice€ofÏproposed€rulemaking,€the€opportunity€for€public€participation,€and€a€delay€in€effective€date,€areÏinapplicable€because€this€regulation€involves€a€military€and€foreign€affairs€function€of€the€UnitedÏStates€(see€5€U.S.C.€553(a)(1)).€€Further,€no€other€law€requires€that€a€notice€of€proposedÏrulemaking€and€an€opportunity€for€public€comment€be€given€for€this€final€rule.€€Because€a€noticeÏof€proposed€rulemaking€and€an€opportunity€for€public€comment€are€not€required€to€be€given€forÏthis€rule€under€5€U.S.C.€553€or€by€any€other€law,€the€analytical€requirements€of€the€RegulatoryÏFlexibility€Act€(5€U.S.C.€601€òòet€seq.óó)€are€not€applicable.Ð x  ÐÌTherefore,€this€regulation€is€issued€in€final€form.€€Although€there€is€no€formal€comment€period,Ïpublic€comments€on€this€regulation€are€welcome€on€a€continuing€basis.€€Comments€Ìshould€be€submitted€to€Sharron€Cook,€Regulatory€Policy€Division,€Bureau€of€ExportÏAdministration,€Department€of€Commerce,€P.O.€Box€273,€Washington,€DC€20044.ÌÔ#†X~òXXX~ò?L#ÔÌList€of€SubjectsÌÌòò15€CFR€Part€730óóÐ X%  Ðà Ü àAdministrative€practice€and€procedure,€Advisory€committees,€Exports,€Foreign€trade,ÏReporting€and€recordkeeping€requirements,€Strategic€and€critical€materials.ÌÌòò15€CFR€Parts€740,€743,€748,€750,€752,€758,€and€758óóÐ Ø,€%( Їà Ü àAdministrative€practice€and€procedure,€Exports,€Foreign€trade,€Reporting€and€RecordÏkeeping€requirements.ÌÌòò15€CFR€Part€762óóÐ ø   ÐÌà Ü àAdministrative€practice€and€procedure,€Business€and€industry,€Confidential€businessÏinformation,€Exports,€Foreign€trade,€Reporting€and€recordkeeping€requirements.ÌÌòò15€CFR€Part€774óóÐ X Ðà Ü àExports,€Foreign€trade.ÌÌÌà Ü àAccordingly,€parts€732,€740,€743,€748,€750,€752,€758,€762,€772,€and€774€of€the€ExportÏAdministration€Regulations€(15€CFR€Parts€730„799)€are€€amended€as€follows:ÌÌÔ2/eÔÚ  Ú1Ú  Ú.Ô3  Ô€€€The€authority€citation€for€15€CFR€parts€758€and€762€œcontinues›€to€read€as€follows:ÌÌà Ü àòòAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€E.O.€12924,€59€FR€43437,€3Ð 8'à" ÐÔ_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€Ô‡X~òXXX~òÔNotice€of€August€10,€1999,€3€CFR,€1999€Comp.,€p.302.Ô#†X~òXXX~òÌW#ÔÐ )À!$ ÐÌÔ2/eÔÚ  Ú2Ú  Ú.Ô3  Ô€€The€authority€citation€for€15€CFR€parts€732,€748,€752,€and€772€continues€to€read€as€follows:Ð Ø,€%( Їò òà Ü àòòó óAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€E.O.€12924,€59€FR€43437,€3Ð X ÐÔ_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;Ô‡X~òXXX~òÔ€Notice€ofÐ 8 à ÐAugust€10,€1999,€3€CFR,€1999€Comp.,€p.302.Ô#†X~òXXX~ò*Z#ÔÐ  À ÐÌÔ2/eÔÚ  Ú3Ú  Ú.Ô3  Ô€€The€authority€citation€for€15€CFR€part€740€continues€to€read€as€follows:Ìò òÌà Ü àòòó óAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€E.O.€12924,€59€FR€43437,€3Ð ˜@  ÐÔ_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€Ô‡X~òXXX~òÔNotice€ofÐ x  ÐAugust€10,€1999,€3€CFR,€1999€Comp.,€p.302.Ô#†X~òXXX~òv\#ÔÐ X ÐÌÔ2/eÔÚ  Ú4Ú  Ú.Ô3  Ô€€The€authority€citation€for€15€CFR€part€743€œis€ñññ ñrevisedñ ñññcontinues›€to€read€as€follows:ÌÌà Ü àòòÔ‡X~òXXX~òÔAuthorityóó:Ô#†X~òXXX~òÐ]#Ô€50€U.S.C.€app.€2401€òòetóó€òòseqóó;€50€U.S.C.€1701€òòetóó€òòseqóó;€E.O.€12924,€59€FR€43437,€3Р؀ ÐÔ_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;Ô‡X~òXXX~òÔ€Notice€of€August€10,€1999,€3€CFR,€1999€Comp.,€p.302.Ô#†X~òXXX~òÒ^#ÔÐ ¸` ЀÌÔ2/eÔÚ  Ú5Ú  Ú.Ô3  Ô€€The€authority€citation€for€15€CFR€part€750€œññis€revisedññññcontinuesññ›€to€read€as€follows:ÌÌà Ü àòòAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€E.O.€12924,€59€FR€43437,€3Ð 8'à" ÐÔ_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€12981,€60€FR€62980,€3€Ô_ÔCFRÔ_Ô,€1997€Comp.,€p.€60;€E.O.€13026,€61ÏFR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€Ô‡X~òXXX~òÔNotice€of€August€10,€1999,€3€CFR,€1999€Comp.,€p.302.Ô#†X~òXXX~òxa#ÔÐ ø* #& ÐÐ Ø,€%( ÐÔ2/eÔÚ  Ú6Ú  Ú.Ô3  Ô€€The€authority€citation€for€15€CFR€part€774€continues€to€read€as€follows:ÌÌà Ü àòòAuthorityóó:€Ô‡X~òXXX~òÔ50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€10€U.S.C.€7420;€10€U.S.C.Ð  À Ð7430(e);€18€U.S.C.€2510€et€seq.;€22€U.S.C.€287c,€22€U.S.C.€3201€et€seq.,€22€U.S.C.€6004;€30ÏU.S.C.€185(s),€185(u);€42€U.S.C.€2139a;€42€U.S.C.€6212;€43€U.S.C.€1354;€46€U.S.C.€app.€466c;Ï50€U.S.C.€app.€5;€E.O.€12924,€59€FR€43437,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€13026,€61€FRÏ58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€Notice€of€August€10,€1999,€3€CFR,€1999€Comp.,€p.302.Ô#†X~òXXX~òÀb#ÔÐ ˜@  ÐÌÔ2/eÔÚ  Ú7Ú  Ú.Ô3  Ô€€Parts€740„772€are€amended€by€revising€the€phrase€ð ðU.S.€exporterðð€to€read€ð ðexporterðð€in€theÏfollowing€places:ÌÌà Ü àðð740.9(a)(2)(iii)€last€sentenceÌà Ü àðð740.10(b)(3)(ii)(C)Ìà Ü àðð743.1(b)Ìà Ü àðð748.11(e)(4)(ii)(òò1óó)Ð ˜!@ Ðà0 Ü àSupplement€No.€3€to€part€748,€ð ðBXA„711,€Statement€By€ultimate€consignee€and€à Ð àà @Ð àÐ x#  ÐPurchaser€Instructionsðð,€Block€8Ð Ü(#Ü(# Ðà0 Ü àSupplement€No.€3€to€part€752,€ð ðInstructions€on€Completing€Form€BXA„752€ð ðStatement€à @j! àà @j! àà @j! àbyÏConsignee€in€Support€of€Special€Comprehensive€Licenseðð,€Block€5Ð Ü(#Ü(# ÐÌò òPART€732€„ó ó€[AMENDED]Ð Ø,€%( ЇÔ2/eÔÚ  Ú8Ú  Ú.Ô3  Ô€€Section€732.5€is€revised€to€read€as€follows:ÌÌññÔ% € Ôññðð732.5€Steps€regarding€Shipperððs€Export€Declaration,€Destination€Control€Statements,€and€Ïrecordkeeping.Ìà Ü àÌ(a)€òòStep€27:€Shipperððs€Export€Declaration€(SED)€or€Automated€Export€System€(AES)€recordóó.€Ð ¸`  ÐExporters€or€agents€authorized€to€complete€the€Shipperððs€Export€Declaration€(SED),€or€to€fileÏSED€information€electronically€using€the€Automated€Export€System€(AES),€should€reviewÏðð758.1€of€the€EAR€to€determine€when€an€SED€is€required€and€what€export€control€informationÏshould€be€entered€on€the€SED€or€AES€record.€€More€detailed€information€about€how€to€completeÏan€SED€or€file€the€SED€information€electronically€using€AES€may€be€found€in€the€Bureau€ofÏCensus€Foreign€Trade€Statistics€Regulations€(FTSR)€at€15€CFR€part€30.€€Reexporters€and€firmsÏexporting€from€abroad€may€skip€Steps€27€through€29€and€proceed€directly€to€ðð732.6€of€this€part.ÌÌà Ü à(1)€òòEntering€license€authorityóó.€€You€must€enter€the€correct€license€authority€for€your€exportÐ ˜!@ Ðon€the€SED€or€AES€record€(License€number,€License€Exception€symbol,€or€No€License€RequiredÏdesignator€ð ðNLRðð)€as€appropriate.€€See€€ðð758.1(g)€of€the€EAR€and€15€CFR€30.7(m)€of€the€FTSR.ÌÌà Ü àà  à(i)€òòLicense€number€and€expiration€dateóó.€€If€you€are€exporting€under€the€authority€of€aÐ )À!$ Ðlicense,€you€must€enter€the€license€number€on€the€SED€or€AES€record.€€The€expiration€date€mustÏbe€entered€on€paper€versions€of€the€SED€only.Ð Ø,€%( Їà Ü àà  à(ii)€òòLicense€Exceptionóó.€€If€you€are€exporting€under€the€authority€of€a€License€Exception,Ð X Ðyou€must€enter€the€correct€License€Exception€symbol€€(òòe.g.óó,€LVS,€GBS,€CIV)€on€the€SED€orÐ 8 à ÐAES€record.€€See€ðð740.1€and€ðð740.2€of€the€EAR.ÌÌà Ü àà  à(iii)€òòNLRóó.€€If€you€are€exporting€items€for€which€no€license€is€required,€you€must€enter€theР؀ Ðdesignator€NLR.€€You€should€use€the€NLR€designator€in€two€circumstances:€first,€when€the€itemsÏto€be€exported€are€subject€to€the€EAR€but€not€listed€on€the€Commerce€Control€List€(CCL)€(òòi.e.óó,Ð ˜@  Ðitems€that€are€classified€as€EAR99),€and€second,€when€the€items€to€be€exported€are€listed€on€theÏCCL€but€do€not€require€a€license.€€Use€of€the€NLR€designator€is€also€a€representation€that€noÏlicense€is€required€under€any€of€the€General€Prohibitions€set€forth€in€part€736€of€the€EAR.ÌÌà Ü à(2)€òòItem€descriptionóó.€€You€must€enter€an€item€description€identical€to€the€item€description€onÐ ø  Ðthe€license€when€a€license€is€required,€or€enter€an€item€description€sufficient€in€detail€to€permitÏreview€by€the€U.S.€Government€and€verification€of€the€Schedule€B€Number€(or€HarmonizedÏTariff€Schedule€number)€for€License€Exception€shipments€or€shipments€for€which€No€License€isÏRequired€(NLR).€€See€ðð758.1(g)€of€the€EAR;€and€15€CFR€30.7(l)€of€the€FTSR.ÌÌà Ü à(3)€òòEntering€the€ECCNóó.€€You€must€enter€the€correct€Export€Control€Classification€NumberÐ 8'à" Ð(ECCN)€on€the€SED€or€AES€record€for€all€licensed€and€License€Exception€shipments,€and€ð ðNoÏLicense€Requiredðð€(NLR)€shipments€of€items€having€a€reason€for€control€other€than€anti„¼terrorism€(AT).€€The€only€exception€to€this€requirement€would€be€the€return€of€unwanted€foreignÐ Ø,€%( Ðorigin€items,€meeting€the€provisions€of€License€Exception€TMP,€under€ðð740.9(b)(3).€€SeeÏðð758.1(g)€of€the€EAR.ÌÌ(b)€òòStep€28:€Destination€Control€Statementóó.€€The€Destination€Control€Statement€(DCS)€must€beÐ ø   Ðentered€on€the€invoice€and€on€the€bill€of€lading,€air€waybill,€or€other€export€control€document€thatÏaccompanies€the€shipment€from€its€point€of€origin€in€the€United€States€to€the€ultimate€consigneeÏor€end„user€abroad.€€The€person€responsible€for€preparation€of€those€documents€is€responsible€forÏentry€of€the€DCS.€€The€DCS€is€required€for€all€exports€from€the€United€States€of€items€on€theÏCommerce€Control€List€and€is€not€required€for€items€classified€as€EAR99,€unless€the€export€mayÏbe€made€under€License€Exception€BAG€or€GFT€(see€part€740€of€the€EAR).€€Reexporters€shouldÏreview€ðð752.15€of€the€EAR€for€DCS€requirements€when€using€a€Special€Comprehensive€License;Ïotherwise,€DCS€requirements€do€not€apply€to€reexports.€€See€ðð758.6€of€the€EAR.ÌÌ(c)€òòStep€29:€Recordkeepingóó.€€Records€of€transactions€subject€to€the€EAR€must€be€maintained€forÐ ¸` Ðfive€years€in€accordance€with€the€recordkeeping€provisions€of€part€762€of€the€EAR.Ìà Ü àÌÔ2/eÔÚ  Ú9Ú  Ú.Ô3  Ô€€Section€732.6€is€amended€by:Ìà Ü àà  àa.à ` àRevising€the€citation€ð ððð758.2"€to€read€ð ððð758.4"€in€paragraph€(a);€andÐ 8'à" Ðà Ü àà  àb.à ` àRevising€the€citation€ð ððð758.4"€to€read€ð ððð758.1"€in€paragraph€(b).Ð )À!$ ÐÌÐ Ø,€%( Ðò òPART€740€„€[AMENDED]ó óà  àÐ X ÐÌÔ2/e ÔÚ  Ú10Ú  Ú.Ô3  Ô€€Section€740.1€is€amended€by€revising:Ìà Ü àa.€€The€phrase€ð ðrequirements€of€ðð758.5€and€ðð758.6€of€the€EAR.ðð€to€read€ð ðrequirements€ofÏðð758.6€of€the€œEAR.ððññ€ññññò òññññin€paragraph€(e)ññññó óññ;›€andР؀ Ðà Ü àb.€Paragraph€(d)€to€read€as€follows:ÌÌÌðð740.1€Introduction.Ìà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð 8à Ðà Ü à(d)€òòShipperððs€Export€Declaration€or€Automated€Export€System€(AES)€recordóó.€€You€mustÐ À Ðenter€on€any€required€Shipperððs€Export€Declaration€(SED)€or€Automated€Export€System€(AES)Ïrecord€the€correct€License€Exception€symbol€(òòe.g.óó,€LVS,€GBS,€CIV)€and€the€correct€ExportР؀ ÐControl€Classification€Number€(ECCN)€(òòe.g.óó,€4A003,€5A002)€for€all€Ô‡X~òXXX~òÔshipments€of€items€exportedÐ ¸` Ðunder€a€Ô#†X~òXXX~òP€#ÔLicense€Exception.€€€Items€temporarily€in€the€United€States€meeting€the€provisions€ofÐ ˜!@ ÐLicense€Exception€TMP,€under€ðð740.9(b)(3),€are€excepted€from€this€requirement.€€€See€ðð758.1€ofÏthe€EAR€for€Shipperððs€Export€Declaration€requirements€or€ðð758.2€of€the€EAR€for€AutomatedÏExport€System€(AES)€requirements.ÌÌà Ü àà  àà ` àà ¸ àà  à*à h à*à À à*à  à*à p à*Ð ø* #& ÐÐ Ø,€%( ÐÔ2/e ÔÚ  Ú11Ú  Ú.Ô3  Ô€€Section€740.7€is€amended€by€revising€the€citation€ð ð758.6(a)(ii)ðð€to€read€ð ð758.6"€in€paragraphÏ(e)(2).ò òÐ 8 à ÐÌPART€748€„€[AMENDED]ó óÐ ø   ÐÌÔ2/e ÔÚ  Ú12Ú  Ú.Ô3  Ô€€€Section€748.4€is€amended€by€revising€paragraphs€(a)€and€(b)€to€read€as€follows:ÌÌðð748.4€Basic€Guidance€Related€to€Applying€for€a€LicenseÌÌà Ü à(a)€òòLicense€Applicantóó.€(1)€òòExport€transactionsóó.€€€Only€a€person€in€the€United€States€may€applyÐ 8à Ðfor€a€license€to€export€items€from€the€United€States.€€The€applicant€must€be€the€exporter,€who€isÏthe€U.S.€principal€party€in€interest€with€the€authority€to€determine€and€control€the€sending€ofÏitems€out€of€the€United€States,€except€for€Encryption€License€Arrangements€(ELA)€(seeÏðð750.7(d)€of€the€EAR).€€See€definition€of€ð ðexporterðð€in€part€772€of€the€EAR.ÌÌà Ü à(2)€òòRouted€export€transactionsóó.€The€U.S.€principal€party€in€interest€or€the€duly€authorizedÐ x#  ÐU.S.€agent€of€the€foreign€principal€party€in€interest€may€apply€for€a€license€to€export€items€fromÏthe€United€States.€€Prior€to€submitting€an€application,€the€agent€that€applies€for€a€license€onÏbehalf€of€the€foreign€principal€party€in€interest€must€obtain€a€power€of€attorney€or€other€writtenÏauthorization€from€the€foreign€principal€party€in€interest.€€See€ðð758.3(b)€and€(d)€of€the€EAR.ÌÐ Ø,€%( Ðà Ü à(3)€òòReexport€transactionsóó.€€The€U.S.€or€foreign€principal€party€in€interest,€or€the€dulyÐ X Ðauthorized€U.S.€agent€of€the€foreign€principal€party€in€interest,€may€apply€for€a€license€toÏreexport€controlled€items€from€one€country€to€another.€€Prior€to€submitting€an€application,€anÏagent€that€applies€for€a€license€on€behalf€of€a€foreign€principal€party€in€interest€must€obtain€aÏpower„of„attorney€or€other€written€authorization€from€the€foreign€principal€party€in€interest,Ïunless€there€is€a€preexisting€relationship€by€ownership,€control,€position€of€responsibility€orÏaffiliation.€€€See€power„of„attorney€requirements€in€paragraph€(b)(2)€of€this€section.ÌÌà Ü à(b)€òòDisclosure€of€parties€on€license€applications€and€the€power€of€attorneyóó.€€(1)òò€Disclosure€ofÐ X Ðpartiesóó.€€License€applicants€must€disclose€the€names€and€addresses€of€all€parties€to€a€transaction.€Ð 8à ÐWhen€the€applicant€is€the€U.S.€agent€of€the€foreign€principal€party€in€interest,€the€applicant€mustÏdisclose€the€fact€of€the€agency€relationship,€and€the€name€and€address€of€the€agentððs€principal.€€IfÏthere€is€any€doubt€about€which€persons€should€be€named€as€parties€to€the€transaction,€theÏapplicant€should€disclose€the€names€of€all€such€persons€and€the€functions€to€be€performed€byÏeach€in€Block€24€(Additional€Information)€of€the€BXA„748P€Multipurpose€Application€form.€ÏNote€that€when€the€foreign€principal€party€in€interest€is€the€ultimate€consignee€or€end„user,€theÏname€and€address€need€not€be€repeated€in€Block€24.€€€See€ð ðParties€to€the€transactionðð€in€ðð748.5Ïof€this€part.ÌÌà Ü à(2)òò€Power€of€attorney€or€other€written€authorizationóó.€(i)€òòRequirementóó.€An€agent€must€obtain€aÐ ø* #& Ðpower€of€attorney€or€other€written€authorization€from€the€€principal€party€in€interest,€unless€thereÐ Ø,€%( Ðis€a€preexisting€relationship€by€ownership,€control,€position€of€responsibility€or€affiliation,€priorÏto€preparing€or€submitting€an€application€for€a€license,€when€acting€as€either:Ìà Ü àà  àà ` à(A)€An€agent,€applicant,€licensee€and€exporter€for€a€foreign€principal€party€inÏinterest€in€a€routed€transaction;€or€ÌÌà Ü àà  àà ` à(B)€An€agent€who€prepares€an€application€for€export€on€behalf€of€a€U.S.€principalÏparty€in€interest€who€is€the€actual€applicant,€licensee€and€exporter€in€an€export€transaction.€€ÌÌà Ü àà  à(ii)€òòApplicationóó.€€When€completing€the€BXA„748P€Multipurpose€Application€Form,Ð X ÐBlock€7€(documents€on€file€with€applicant)€must€be€marked€ð ðotherðð€and€Block€24€(AdditionalÏinformation)€must€be€marked€ð ð748.4(b)(2)ðð€to€indicate€that€the€power€of€attorney€or€other€writtenÏauthorization€is€on€file€with€the€agent.€€See€ðð758.3(d)€for€power€of€attorney€requirement,€and€seeÏalso€part€762€of€the€EAR€for€recordkeeping€requirements.ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à h àà À à*à  à*Ð ˜!@ ÐÌÔ2/e ÔÚ  Ú13Ú  Ú.Ô3  Ô€€€Section€748.5€is€revised€to€read€as€follows:ÌÌò òðð748.5€€Parties€to€the€Transaction.ó ó€The€following€parties€may€be€entered€on€the€BXA„748PÐ )À!$ ÐMultipurpose€Application€Form€or€electronic€equivalent.€€The€definitions,€which€also€appear€inÏPart€772€of€the€EAR,€are€set€out€here€for€your€convenience€to€assist€you€in€filling€out€yourÐ Ø,€%( Ðapplication€correctly.ÌÌ(a)€òòApplicantóó.€€The€person€who€applies€for€an€export€or€reexport€license,€and€who€has€theÐ  À Ðauthority€of€a€principal€party€in€interest€to€determine€and€control€the€export€or€reexport€of€items.€ÏSee€ðð748.4(a)€of€this€part€and€definition€of€ð ðexporterðð€in€part€772€of€the€EAR.ÌÌ(b)€òòOther€party€authorized€to€receive€licenseóó.€€The€person€authorized€by€the€applicant€to€receiveÐ ˜@  Ðthe€license.€€If€a€person€and€address€is€listed€in€Block€15€of€the€BXA„748P€MultipurposeÏApplication€Form€or€the€electronic€equivalent,€the€Bureau€of€Export€Administration€will€send€theÏlicense€to€that€person€instead€of€the€applicant.€€Designation€of€another€party€to€receive€the€licenseÏdoes€not€alter€the€responsibilities€of€the€applicant,€licensee€or€exporter.ÌÌ(c)€òòPurchaseróó.€The€person€abroad€who€has€entered€into€the€transaction€to€purchase€an€item€forР؀ Ðdelivery€to€the€ultimate€consignee.€€In€most€cases,€the€purchaser€is€not€a€bank,€forwarding€agent,Ïor€intermediary.€€The€purchaser€and€ultimate€consignee€may€be€the€same€entity.ÌÌ(d)€òòIntermediate€Consigneeóó.€The€person€that€acts€as€an€agent€for€a€principal€party€in€interest€andÐ X%  Ðtakes€possession€of€the€items€for€the€purpose€of€effecting€delivery€of€the€items€to€the€ultimateÏconsignee.€€The€intermediate€consignee€may€be€a€bank,€forwarding€agent,€or€other€person€whoÏacts€as€an€agent€for€a€principal€party€in€interest.€ÌÐ Ø,€%( Ð(e)€òòUltimate€Consigneeóó.€The€principal€party€in€interest€located€abroad€who€receives€the€exportedÐ X Ðor€reexported€items.€€The€ultimate€consignee€is€not€a€forwarding€agent€or€other€intermediary,€butÏmay€be€the€end„user.ÌÌ(f)€òòEnd„Useróó.€€The€person€abroad€that€receives€and€ultimately€uses€the€exported€or€reexportedР؀ Ðitems.€€The€end„user€is€not€a€forwarding€agent€or€intermediary,€but€may€be€the€purchaser€orÏultimate€consignee.ÌÌò òÌPART€750€„€[AMENDED]Ô‡X~òXXX~òÔÐ 8à ÐÌó óÔ2/e ÔÚ  Ú14Ú  Ú.Ô3  Ô€€Section€750.7€is€amended€by€revising€paragraph€(d)€to€read€as€follows:Ð ø  ÐÌò òðð750.7€Issuance€of€licenses.ó ó€à  àÐ ¸` ÐÌà Ü àà  àà ` à*à ¸ à*à  à*à h à*à À à*Ð x#  ÐÌ(d)€òòResponsibility€of€the€licenseeóó.€€The€person€to€whom€a€license€is€issued€is€the€licensee.€€InÐ 8'à" Ðexport€transactions,€the€exporter€must€be€the€licensee,€and€the€exporter„licensee€is€responsible€forÏthe€proper€use€of€the€license,€and€for€all€terms€and€conditions€of€the€license,€except€to€the€extentÏthat€certain€terms€and€conditions€are€directed€toward€some€other€party€to€the€transaction.€€In€theÐ Ø,€%( Ðcase€of€Encryption€License€Agreements€(ELA),€the€licensee€may€not€necessarily€be€the€exporterÏor€reexporter.€€In€this€case,€the€authorized€user€of€the€ELA€is€responsible€for€proper€use€of€theÏlicense,€and€for€all€terms€and€conditions€of€the€license,€except€to€the€extent€that€certain€terms€andÏconditions€are€directed€toward€some€other€party€to€the€transaction.€Ô#†X~òXXX~ò1ž#ÔÔ‡X~òXXX~òÔ€In€reexport€or€routed€exportÐ ø   Ðtransactions,€a€U.S.Ô#†X~òXXX~ò£#Ô€agent€acting€on€behalf€of€a€foreign€principal€party€in€interest€may€be€theР؀ Ðlicensee;€in€these€cases,€both€the€agent€and€the€foreign€principal€party€in€interest,€on€whose€behalfÏthe€agent€has€acted,€are€responsible€for€the€use€of€the€license,€and€for€all€terms€and€conditions€ofÏthe€license,€except€to€the€extent€that€certain€terms€and€conditions€are€directed€toward€some€otherÏparty€to€the€transaction.€€It€is€the€licenseeððs€responsibility€to€communicate€the€specific€licenseÏconditions€to€the€parties€to€whom€those€conditions€apply.€€In€addition,€when€required€by€theÏlicense,€the€licensee€is€responsible€for€obtaining€written€acknowledgment(s)€of€receipt€of€theÏconditions€from€the€party(ies)€to€whom€those€conditions€apply.ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð ¸` ÐÌò òÔ‡X~òXXX~òÔPART€752€„€[AMENDED]ó óÔ#†X~òXXX~òý¦#ÔÐ x#  ÐÌÔ2/eÔÚ  Ú15Ú  Ú.Ô3  Ô€€Section€752.15€is€amended€by€revising€the€citation€ð ððð758.3"€to€read€ð ððð758.1"€in€paragraphÏ(a)€€introductory€text.ÌÌò òPART€758€„€[AMENDED]ó óÐ Ø,€%( ЇÔ2/eÔÚ  Ú16Ú  Ú.Ô3  Ô€€Part€758€Ô‡X~òXXX~òÔis€amended€by€revising€Ô#†X~òXXX~ò¨¨#Ôsections€758.1€through€758.6,€Ô‡X~òXXX~òÔto€read€as€follows:Ô#†X~òXXX~ò©#ÔÐ X Ðà Ü à€Ìò òPART€758€„€EXPORT€CLEARANCE€REQUIREMENTSó óÐ  À ÐÌò òðð758.1€The€Shipperððs€Export€Declaration€(SED)€or€Automated€Export€System€(AES)Р؀ Ðrecord.€€ó óÐ ¸`  ÐÌ(a)€òòThe€Shipperððs€Export€Declaration€(SED)€or€Automated€Export€System€(AES)€recordóó.€€TheÐ x  ÐSED€(Form€7525„V,€Form€7525„V„Alt,€or€Automated€Export€System€record)€is€used€by€theÏBureau€of€Census€to€collect€trade€statistics€and€by€the€Bureau€of€Export€Administration€forÏexport€control€purposes.€€The€SED€or€AES€record€collects€basic€information€such€as€the€namesÏand€addresses€of€the€parties€to€a€transaction;€€the€Export€Control€Classification€Number€(ECCN)Ï(when€required),€the€Schedule€B€number€or€Harmonized€Tariff€Schedule€number,€the€description,Ïquantity€and€value€of€the€items€exported;€and€the€license€authority€for€the€export.€€The€SED€orÏthe€AES€electronic€equivalent€is€a€statement€to€the€United€States€Government€that€the€transactionÏoccurred€as€described.ÌÌÔ‡X~òXXX~òÔ(b)€òòWhen€an€SED€or€AES€record€is€requiredóó.€€Except€when€the€export€of€items€subject€to€theÐ 8'à" ÐEAR€is€to€take€place€electronically€or€in€an€otherwise€intangible€form,€you€must€file€an€SED€orÏAES€record€with€the€United€States€Government€for€items€subject€to€the€EAR,€including€exportsÏby€U.S.€mail,€in€the€following€situations:Ô#†X~òXXX~ò…­#ÔÔ‡X~òXXX~òÔÐ Ø,€%( ЇÌà Ü à(1)€For€all€exports€of€items€subject€to€the€EAR€Ô#†X~òXXX~ò#¯#ÔÔ‡X~òXXX~òÔthat€are€destined€to€Cuba,€Iran,€Iraq,€Libya,Ð 8 à ÐNorth€Korea,€Serbia€(except€Kosovo),€Sudan,€or€Syria,€regardless€of€value€(see€15€CFR€30.55(h)Ïof€the€FTSR);€andÔ#†X~òXXX~ò¸¯#ÔÔ‡X~òXXX~òÔÐ ø   ÐÌà Ü à(2)€Ô#†X~òXXX~ò¬°#ÔÔ‡X~òXXX~òÔFor€all€exports€of€items€subject€to€the€EAR€that€are€authorized€under€a€license,€regardlessÐ ¸`  Ðof€value,€or€destination;ÌÌà Ü à(3)€For€all€exports€of€commodities€and€mass€market€software€subject€to€the€EAR€that€areÏauthorized€under€a€License€Exception€or€under€NLR,€when€the€value€of€the€commodities€or€massÏmarket€software€classified€under€a€single€Schedule€B€Number€(or€Harmonized€Tariff€Ô#†X~òXXX~ò±#ÔScheduleÔ‡X~òXXX~òÔÐ À Ðnumber)Ô#†X~òXXX~òü²#ÔÔ‡X~òXXX~òÔ€is€over€$2,500,€except€as€exempted€by€the€Foreign€Trade€Statistics€Regulations€(FTSR)Ð ø  Ðin€15€CFR€part€30€and€referenced€in€paragraph€(c)€of€this€section;ÌÌÔ#†X~òXXX~òZ³#ÔÔ‡X~òXXX~òÔà Ü à(4)€For€all€exports€of€items€subject€to€the€EARÔ#†X~òXXX~òK´#ÔÔ‡X~òXXX~òÔ€that€will€be€transshipped€through€Canada€to€aÐ ˜!@ Ðthird€destination,€where€the€export€would€require€an€SED€or€AES€record€or€license€if€shippedÏdirectly€to€the€final€destination€from€the€United€StatesÔ#†X~òXXX~òÈ´#Ô€(see€Ô‡X~òXXX~òÔ15€CFRÔ#†X~òXXX~òèµ#Ô€30.58(c)€of€the€FTSR).Ð X%  ÐÌà Ü àò òNote€to€paragraph€(b)ó ó:€In€addition€to€the€Shipperððs€Export€Declaration€for€exports,€theÐ )À!$ ÐBureau€of€Census€Foreign€Trade€Statistics€Regulations€provide€for€a€specific€Shipperððs€ExportÏDeclaration€for€In„Transit€Goods€(Form€7513).€€See€Ô‡X~òXXX~òÔ15€CFRÔ#†X~òXXX~òr·#Ô€30.3€and€30.8€of€the€FTSR.Ð Ø,€%( Ї(c)€òòExemptionsóó.€€A€complete€list€of€exemptions€from€the€SED€or€AES€filing€requirement€is€setÐ X Ðforth€in€the€FTSR.€€Some€of€these€FTSR€exemptions€have€elements€in€common€with€certain€EARÏLicense€Exceptions.€€An€FTSR€exemption€may€be€narrower€than€a€License€Exception.€€TheÏfollowing€references€are€provided€in€order€to€direct€you€to€the€FTSR€exemptions€that€relate€toÏEAR€License€Exceptions:ÌÌà Ü à(1)€License€Exception€Baggage€(BAG),€as€set€forth€in€ðð740.14€of€the€EAR.€€See€Ô‡X~òXXX~òÔ15€CFRÔ#†X~òXXX~òè¹#ÔÐ ˜@  Ð30.56€of€the€FTSR;ÌÌà Ü à(2)€License€Exception€Gift€Parcels€and€Humanitarian€Donations€(GFT),€as€set€forth€inÏðð740.12€of€the€EAR.€€See€Ô‡X~òXXX~òÔ15€CFRÔ#†X~òXXX~òÖº#Ô€30.55(g)€of€the€FTSRÔ‡X~òXXX~òÔ;Ð À ÐÌà Ü à(3)€License€Exception€Aircraft€and€Vessels€(AVS),€as€set€forth€in€ðð740.15€of€the€EAR.€€SeeÏ15€CFRÔ#†X~òXXX~ò3»#ÔÔ‡X~òXXX~òÔ€30.55(l)€of€the€FTSRÔ#†X~òXXX~òü»#ÔÔ‡X~òXXX~òÔ;Ð ¸` ÐÌà Ü à(4)€License€Exception€Governments€and€International€Organizations€(GOV),€€as€set€forth€inÏðð740.11€of€the€EAR.€€See€15€CFRÔ#†X~òXXX~òS¼#ÔÔ‡X~òXXX~òÔ€30.53€of€the€FTSRÔ#†X~òXXX~ò4½#ÔÔ‡X~òXXX~òÔ;Ð X%  ÐÌà Ü à(5)€License€Exception€Technology€and€Software€Under€Restriction€(TSR),€as€set€forth€inÏðð740.6€of€the€EAR.€€See€15€CFRÔ#†X~òXXX~òˆ½#ÔÔ‡X~òXXX~òÔ€30.55(n)€of€the€FTSRÔ#†X~òXXX~òe¾#Ô;€orÐ ø* #& ÐÐ Ø,€%( Ðà Ü à(6)€License€Exception€Temporary€Imports,€Exports,€and€Reexports€(TMP)€ð ðtools€of€tradeðð,€asÏset€forth€in€€ðð740.9(a)(2)(i)€of€the€EAR.€€See€Ô‡X~òXXX~òÔ15€CFRÔ#†X~òXXX~ò‰¿#Ô€30.56(b)€of€the€FTSR.Ð 8 à ÐÌ(d)€òòNotation€on€export€documents€for€exports€exempt€from€SED€or€AES€record€requirementsóó.€Ð ø   ÐWhen€an€exemption€from€filing€the€Shipperððs€Export€Declaration€or€Automated€Export€SystemÏrecord€applies,€the€export€authority€(License€Exception€or€NLR)€of€all€the€items€must€be€enteredÏon€the€loading€document€(òòe.g.óó,€Cargo€Declaration,€manifest,€bill€of€lading,€(master)€air€waybill)Ð ˜@  Ðby€the€person€responsible€for€preparing€the€document.€€This€requirement€is€intended€to€parallelÏthe€Bureau€of€Census€requirement,€so€that€notations€as€to€the€basis€for€the€SED€exemption€òòandóóÐ X Ðthe€license€authority€are€entered€in€the€same€place€and€manner€(see€15€CFR€30.21€of€the€FTSRÏfor€detailed€requirements).€€The€loading€document€must€be€available€for€inspection€byÏgovernment€officials,€along€with€the€items,€prior€to€lading€on€the€carrier.€ÌÌ(e)€òòSigning€the€Shipperððs€Export€Declaration€or€transmitting€data€via€AESóó.€€The€person€whoÐ ¸` Ðsigns€the€SED€must€be€in€the€United€States€at€the€time€of€signing.€€The€person€who€transmits€dataÏvia€AES€must€be€a€certified€AES€participant€in€accordance€with€15€CFR€30.60€of€the€FTSR.€€TheÏperson€that€signs€the€SED€or€transmits€data€via€AES,€whether€exporter€or€agent,€is€responsible€forÏthe€truth,€accuracy,€and€completeness€of€the€SED€or€AES€record,€except€insofar€as€that€personÏcan€demonstrate€that€he€or€she€reasonably€relied€on€information€furnished€by€others.€€ÌÌ(f)€òòThe€SED€or€AES€record€is€an€export€control€document.óó€€The€SED€or€AES€record€is€aÐ Ø,€%( Ðstatement€to€the€U.S.€Government.€€The€SED€or€AES€record€is€an€export€control€document€asÏdefined€in€part€772€of€the€EAR.€€False€statements€made€thereon€may€be€a€violation€of€ðð764.2(g)Ïof€the€EAR.€€When€an€SED€or€AES€record€is€presented€to€the€U.S.€Government,€the€signer€orÏfiler€of€the€SED€or€AES€record€represents€the€following:ÌÌà Ü à(1)€Export€of€the€items€described€on€the€SED€or€AES€record€is€authorized€under€the€termsÏand€conditions€of€a€license€issued€by€BXA;€is€in€accordance€with€the€terms€and€conditions€of€aÏLicense€Exception;€is€authorized€under€ð ðNLRðð€as€no€license€is€required€for€the€shipment;€or€isÏnot€subject€to€the€EAR;ÌÌà Ü à(2)€Statements€on€the€SED€or€AES€record€are€in€conformity€with€the€contents€of€any€licenseÏissued€by€BXA,€with€the€possible€exception€of€the€exporter€block€in€routed€transactions;€andÌÌà Ü à(3)€All€information€shown€on€the€SED€or€AES€record€is€true,€accurate,€and€complete.ÌÌ(g)€òòExport€control€information€on€the€SED€or€AES€recordóó.€€For€òòeachóó€item€on€the€SED€or€AESÐ x#  Ðrecord,€you€must€show€the€license€authority€(License€number,€License€Exception,€or€No€LicenseÏRequired€(NLR)),€the€Export€Control€Classification€Number€(ECCN)€(when€required),€and€theÏitem€description€in€the€designated€blocks.€€The€item€description€must€be€stated€in€CommerceÏControl€List€terms.€€If€those€terms€are€inadequate€to€meet€Census€Bureau€requirements,€the€FTSRÏrequires€that€you€give€enough€additional€detail€to€permit€verification€of€the€Schedule€B€NumberÐ Ø,€%( Ð(or€Harmonized€Tariff€Schedule€number).€€The€FTSR€also€requires€separate€descriptions€of€itemsÏfor€each€Schedule€B€classification€(or€Harmonized€Tariff€Schedule€number).€€See€15€CFR€30.6Ï(separate€SED€or€AES€records),€€30.7(l)€(description€of€items)€and€30.9€(separation€of€items€onÏthe€SED)€of€the€FTSR.ÌÌà Ü à(1)€òòExports€under€a€licenseóó.€€When€exporting€under€the€authority€of€a€license,€you€must€enterÐ ¸`  Ðon€the€SED€or€AES€record€the€license€number€and€expiration€date€(the€expiration€date€is€onlyÏrequired€on€paper€versions€of€the€SED),€the€ECCN,€and€an€item€description€identical€to€the€itemÏdescription€on€the€license.€ÌÌà Ü à(2)€òòExports€under€a€License€Exceptionóó.€€You€must€enter€on€any€required€SED€or€AES€recordÐ À Ðthe€ECCN€and€the€correct€License€Exception€symbol€(òòe.g.óó,€LVS,€GBS,€CIV)€for€the€LicenseÐ ø  ÐException(s)€under€which€you€are€exporting.€€Items€temporarily€in€the€United€States€meeting€theÏprovisions€of€License€Exception€TMP,€under€ðð740.9(b)(3),€are€excepted€from€this€requirement.€ÏSee€also€ðð740.1(d)€of€the€EAR.ÌÌà Ü à(3)€òòNo€License€Required€(NLR)€exportsóó.€€You€must€enter€on€any€required€SED€or€AESÐ X%  Ðrecord€the€ð ðNLRðð€designation€when€the€items€to€be€exported€are€subject€to€the€EAR€but€notÏlisted€on€the€Commerce€Control€List€(òòi.e.óó,€items€are€classified€as€EAR99),€and€when€the€items€toÐ )À!$ Ðbe€exported€are€listed€on€the€CCL€but€do€not€require€a€license.€€In€addition,€you€must€enter€theÏcorrect€ECCN€on€any€required€SED€or€AES€record€for€all€items€being€exported€under€the€NLRÐ Ø,€%( Ðprovisions€that€have€a€reason€for€control€other€than€anti„terrorism€(AT).€€The€designator€ð ðTSPAððÏmay€be€used,€but€is€not€required,€when€the€export€consists€of€technology€or€software€outside€theÏscope€of€the€EAR.€€See€ðð734.7€through€ðð734.11€of€the€EAR€for€TSPA€information.ÌÌ(h)€òòPower€of€attorney€or€other€written€authorizationóó.€€€In€a€ð ðpower€of€attorneyðð€or€other€writtenР؀ Ðauthorization,€authority€is€conferred€upon€an€agent€to€perform€certain€specified€acts€or€kinds€ofÏacts€on€behalf€of€a€principal.ÌÌà Ü à(1)€€An€agent€must€obtain€a€power€of€attorney€or€other€written€authorization€in€the€followingÏcircumstances:ÌÌà Ü àà  à(i)€€An€agent€that€represents€a€foreign€principal€party€in€interest€in€a€routed€transactionÏmust€obtain€a€power€of€attorney€or€other€written€authorization€that€sets€forth€his€authority;€andÌÌà Ü àà  à(ii)€€An€agent€that€applies€for€a€license€on€behalf€of€a€principal€party€in€interest€mustÏobtain€a€power€of€attorney€or€other€written€authorization€that€sets€forth€the€agentððs€authority€toÏapply€for€the€license€on€behalf€of€the€principal.ÌÌà Ü àò òNote€to€paragraph€(h)(1):ó ó€€The€Bureau€of€Census€Foreign€Trade€Statistics€RegulationsÐ )À!$ Ðimpose€additional€requirements€for€a€power€of€attorney€or€other€written€authorization.€€See€15ÏCFR€30.4(e)€of€the€FTSR.Ð Ø,€%( Їà Ü à(2)€€This€requirement€for€a€power€of€attorney€or€other€written€authorization€is€a€legalÏrequirement€aimed€at€ensuring€that€the€parties€to€a€transaction€negotiate€and€understand€theirÏresponsibilities.€€The€absence€of€a€power€of€attorney€or€other€written€authorization€does€notÏprevent€BXA€from€using€other€evidence€to€establish€the€existence€of€an€agency€relationship€forÏpurposes€of€imposing€liability.€€ÌÌ(i)€òòSubmission€of€the€SED€or€AES€recordóó.€€The€SED€or€AES€record€must€be€submitted€to€theÐ ˜@  ÐU.S.€Government€in€the€manner€prescribed€by€the€Bureau€of€Census€Foreign€Trade€StatisticsÏRegulations€(15€CFR€Part€30).€€Ìò òÌðð758.2€€Automated€Export€System€(AES).€€ó óThe€Census€Bureauððs€Foreign€Trade€StatisticsÐ À ÐRegulations€(FTSR)€(15€CFR€30)€contain€provisions€for€filing€Shipperððs€Export€DeclarationsÏ(SEDs)€electronically€using€the€Automated€Export€System€(AES).€€In€order€to€use€AES,€youÏmust€apply€directly€to€the€Census€Bureau€for€certification€and€approval€through€a€Letter€of€IntentÏ(see€15€CFR€30.60(b)€and€Appendix€A€to€part€30€of€the€FTSR).€€Four€AES€filing€options€areÏavailable€for€transmitting€shipperððs€export€data.€€Option€1€is€the€standard€paper€filing€of€the€SED,Ïwhile€the€other€three€options€are€electronic.Ô_Ô€€Option€2€requires€the€electronic€filing€of€allÏinformation€required€for€export€prior€to€export€(15€CFR€30.61(a)€and€30.63€of€the€FTSR);€OptionÏ3€requires€the€electronic€filing€of€only€specified€data€elements€prior€to€export,€with€completeÏinformation€transmitted€within€5€working€days€of€exportation€(15€CFR€30.61(b)€and€Appendix€BÏof€the€FTSR);€Option€4€is€only€available€for€approved€filers€(approval€by€Census€Bureau,€U.S.Ð Ø,€%( ÐCustoms€Service,€BXA€and€other€agencies)€and€requires€no€information€to€be€transmitted€prior€toÏexport,€with€complete€information€transmitted€within€10€working€days€of€exportation€(15€CFRÏ30.61(c)€and€30.62(c)€of€the€FTSR).Ì€Ô‡5X~òXXX~òÔÐ ø   Ð(a)€òòCensusðð€Option€4€application€processóó.€€Exporters,€or€agents€applying€on€behalf€of€an€exporter,Р؀ Ðmay€apply€for€Option€4€filing€privileges€by€submitting€a€Letter€of€Intent€to€the€Census€Bureau€inÏaccordance€with€Ô#†X~òXX5X~ò,à#Ô15€CFR€30.60(b)€and€Ô‡5X~òXXX~òÔ30.62€of€the€FTSR.€€The€Census€Bureau€will€distribute€theÐ ˜@  ÐLetter€of€Intent€to€BXA€and€other€agencies€participating€in€the€Option€4€approval€process.€€AnyÏagency€may€notify€Census€that€an€applicant€has€failed€to€meet€its€acceptance€standards,€and€theÏCensus€Bureau€will€provide€a€denial€letter€to€the€applicant€naming€the€denying€agency.€€If€noÏagency€denies€the€application€within€30€days,€nor€requests€an€extension€of€time€within€30€days,Ïthe€Census€Bureau€will€provide€the€applicant€with€an€approval€letter.€€See€Ô#†X~òXX5X~ò‰á#Ô15€CFR€30.62(b)€ofÐ ø  Ðthe€FTSR.Ô‡5X~òXXX~òÔР؀ Ðà Ü àà  àÔ#†X~òXX5X~òä#ÔÔ‡5X~òXXX~òÔ€Ô#†X~òXX5X~òä#ÔÔ‡5X~òXXX~òÔÐ ¸` ÐÌ(b)€òòBXA€Option€4€application€processóóÔ#†X~òXX5X~òÄä#ÔÔ‡5X~òXXX~òÔ€€Ô#†X~òXX5X~òFå#ÔÔ‡5X~òXXX~òÔWhen€AES€filers€wish€to€use€Option€4€for€exports€ofÐ x#  Ðitems€that€require€a€BXA€license,€those€filers€must€seek€separate€approval€directly€from€BXA€byÏcompleting€a€questionnaire€and€certification.€€(Separate€BXA€approval€is€not€required€for€the€useÏof€Option€4€in€connection€with€exports€that€do€not€require€a€BXA€license.)€€The€questionnaireÏand€certification€should€be€mailed€to:ÌÐ Ø,€%( Ðà Ü àà  àU.S.€Department€of€CommerceÔ#†X~òXX5X~òŠå#ÔÔ‡5X~òXXX~òÔÐ X Ðà Ü àà  àBureau€of€Export€AdministrationÌà Ü àà  àThe€Office€of€Enforcement€AnalysisÔ#†X~òXX5X~ò£ç#ÔÔ‡5X~òXXX~òÔÐ  À Ðà Ü àà  à14th€&€Pennsylvania€Avenue,€N.W.,€Room€4065Ìà Ü àà  àWashington,€D.C.€20230ÌÌà Ü à(1)òò€Questionnaireóó.€€The€following€questions€must€be€answered€based€on€your€experiencesÐ ˜@  Ðover€the€past€five€years.€€If€the€answer€to€either€of€the€questions€is€"yes",€it€must€be€followed€withÏa€full€explanation.€€Answering€ð ðyesðð€to€either€of€the€questions€will€not€automatically€preventÏyour€participation€in€Option€4.€€BXA€will€consider€the€facts€of€each€case€and€any€remedial€actionÏyou€have€taken€to€determine€whether€your€reliability€is€sufficient€to€participate€in€this€program.Ô#†X~òXX5X~òlè#ÔÔ‡5X~òXXX~òÔÐ À ÐÌà Ü àà  à(i)€Have€you€been€charged€with,€convicted€of,€or€penalized€for,€any€violation€of€the€EARÏor€any€statute€described€in€ðð766.25€of€the€EAR?ÌÌà Ü àà  à(ii)€Have€you€been€notified€by€any€government€official€of€competent€authority€that€youÏare€under€investigation€for€any€violation€of€the€EAR€or€any€statute€describedÔ#†X~òXX5X~òDë#ÔÔ‡5X~òXXX~òÔ€in€ðð766.25€of€theÐ X%  ÐEARÔ#†X~òXX5X~òýì#ÔÔ‡5X~òXXX~òÔ?Ð 8'à" ÐÌà Ü à(2)€òòCertificationóó.€€Each€applicant€must€submit€a€signed€certification€as€set€forth€in€thisÐ ø* #& Ðparagraph.€€The€certification€will€be€subject€to€verification€by€BXA.Ô#†X~òXX5X~òlí#ÔÔ‡5X~òXXX~òÔÐ Ø,€%( ÐÑw/%ÑØ%%ØÑ  ÑÌà0 Ü àI€(We)€certify€that€I€(we)€have€established€adequate€internal€procedures€and€safeguards€to€Ïcomply€with€the€requirements€set€forth€in€the€U.S.€Department€of€Commerce€ExportÏAdministration€Regulations€(EAR)€and€Foreign€Trade€Statistics€Regulations€(FTSR).€€€TheseÏprocedures€and€safeguards€include€means€for:Ð Ü(#Ü(# ÐÌà Ü àà0  à(i)€Making€a€proper€determination€as€to€whether€a€license€is€required€for€a€particularÏexport;Ð (#(# Ðà Ü àà0  à(ii)€Receipt€of€notification€of€approval€of€the€export€license,€if€required,€before€the€exportÏis€made;Ð (#(# Ðà Ü àà0  à(iii)€Compliance€with€all€the€terms€and€conditions€of€the€license,€License€Exception,€orÏNLR€provisions€of€the€EAR€as€applicable;Ð (#(# Ðà Ü àà0  à(iv)€Return€of€revoked€or€suspended€licenses€to€BXA€in€accordance€with€ðð750.8(b)€of€theÏEAR,€if€requested;Ð (#(# Ðà Ü àà0  à(v)€Compliance€with€the€destination€control€statement€provisions€of€ðð758.6€of€the€EAR;Ð (#(# Ðà Ü àà0  à(vi)€Compliance€with€the€prohibition€against€export€transactions€that€involve€persons€whoÏhave€been€denied€U.S.€export€privileges;€andÐ (#(# Ðà Ü àà0  à(vii)€Compliance€with€the€recordkeeping€requirements€of€part€762€of€the€EAR.Ð (#(# ÐÌ€à0 Ü àI€(we)€agree€that€my€(our)€office€records€and€€physical€space€will€be€made€available€forÐ ø* #& Ðinspection€by€the€Bureau€of€the€Census,€BXA,€or€the€U.S.€Customs€Service,€upon€request.ÐØ,€%(Ü(#Ü(# Ї(c)€òòBXA€Option€4€evaluation€criteriaóó.€€BXA€will€consider€the€grounds€for€denial€of€Option€4Ð X Ðfiling€status€set€forth€in€15€CFR€30.62(b)(2)€of€the€FTSR,€as€well€as€the€additional€grounds€forÏdenial€set€forth€in€this€subsection.ÌÌà Ü à(1)Applicants€have€not€been€approved€for€Option€4€filing€privileges€by€the€Census€Bureau€orÏother€agencyÔ#†X~òXX5X~ò‹î#ÔÔ‡5X~òXXX~òÔ;Ô#†X~òXX5X~òðö#ÔÔ‡5X~òXXX~òÔÐ ¸`  ÐÌà Ü à(2)€Applicants€are€denied€persons€(òòi.e.óó,€persons€listed€on€the€Denied€Persons€List€inÐ x  ÐSupplement€No.€2€to€Part€764€of€the€EAR);€orÌÌà Ü à(3)€Exports€are€destined€to€the€countries€designated€by€the€Secretary€of€State€as€supporters€ofÏinternational€terrorism€under€Section€6(j)€of€the€Export€Administration€Act€of€1979,€as€amended.ÏThese€"T„7"€countries€currently€include€Iran,€Iraq,€Libya,€North€Korea,€Cuba,€Sudan,€and€Syria.Ô#†X~òXX5X~ò3÷#ÔÔ‡5X~òXXX~òÔР؀ ÐÌ(d)€òòContacts€for€assistanceóó.€(1)€For€additional€information€on€the€AES€in€general,€please€contact:€Ð ˜!@ ÐChief€Foreign€Trade€Division€ÌU.S.€Census€Bureau€Ì(301)€457„2255Ìfacsimile:€(301)€457€„2645ÌÌ(2)€For€information€about€BXAððs€Option€4€approval€process€to€use€AES€Option€4€for€itemsÐ Ø,€%( Ðsubject€to€the€EAR,€contact:€ÌÌDirector,€Office€of€Enforcement€AnalysisÌBureau€of€Export€AdministrationÌ(202)€482„4255Ìfacsimile:€(202)€482„0971ÌÔ#†X~òXX5X~òaù#Ôò òÌÌðð758.3€€Responsibilities€of€parties€to€the€transaction.ó ó€€€All€parties€that€participate€inÐ X Ðtransactions€subject€to€the€EAR€must€comply€with€the€EAR.€€Parties€are€free€to€structureÏtransactions€as€they€wish,€and€to€delegate€functions€and€tasks€as€they€deem€necessary,€as€long€asÏthe€transaction€complies€with€the€EAR.€€However,€acting€through€a€forwarding€or€other€agent,€orÏdelegating€or€redelegating€authority,€does€not€in€and€of€itself€relieve€anyone€of€responsibility€forÏcompliance€with€the€EAR.ÌÌ(a)€€òòExport€transactionsóó.€€The€U.S.€principal€party€in€interest€is€the€exporter,€except€in€certainÐ x#  Ðrouted€transactions.€€The€exporter€must€determine€licensing€authority€(License,€LicenseÏException,€or€NLR),€and€obtain€the€appropriate€license€or€other€authorization.€€The€exporter€mayÏhire€forwarding€or€other€agents€to€perform€various€tasks,€but€doing€so€does€not€necessarilyÏrelieve€the€exporter€of€compliance€responsibilities.€ÌÐ Ø,€%( Ð(b)€òòRouted€export€transactionsóó.€€All€provisions€of€the€EAR,€including€the€end„use€and€end„userÐ X Ðcontrols€found€in€part€744€of€the€EAR,€and€the€General€Prohibitions€found€in€part€736€of€theÏEAR,€apply€to€routed€export€transactions.€€The€U.S.€principal€party€in€interest€is€the€exporter€andÏmust€determine€licensing€authority€(License,€License€Exception,€or€NLR),€and€obtain€theÏappropriate€license€or€other€authorization,€òòunlessóó€the€U.S.€principal€party€in€interest€obtains€fromР؀ Ðthe€foreign€principal€party€in€interest€a€writing€wherein€the€foreign€principal€party€in€interestÏexpressly€assumes€responsibility€for€determining€licensing€requirements€and€obtaining€licenseÏauthority,€making€the€U.S.€agent€of€the€foreign€principal€party€in€interest€the€exporter€for€EARÏpurposes.€€One€writing€may€cover€multiple€transactions€between€the€same€principals.€€SeeÏðð748.4(a)(3)€of€the€EAR.ÌÌà Ü àò òNote€to€paragraph€(b):ó ó€€For€statistical€purposes,€the€Foreign€Trade€Statistics€RegulationsÐ ø  Ðhave€a€different€definition€of€ð ðexporterðð€from€the€Export€Administration€Regulations.€€Under€theÏFTSR€the€ð ðexporterðð€will€always€be€the€U.S.€principal€party€in€interest.€€For€purposes€ofÏlicensing€responsibility€under€the€EAR,€€the€U.S.€agent€of€the€foreign€principal€party€in€interestÏmay€be€the€ð ðexporterðð€in€a€routed€transaction.ÌÌ(c)€òòInformation€sharing€requirementsóó.€€In€routed€export€transactions€where€the€foreign€principalÐ 8'à" Ðparty€in€interest€assumes€responsibility€for€determining€and€obtaining€licensing€authority,€theÏU.S.€principal€party€in€interest€must,€upon€request,€provide€the€foreign€principal€party€in€interestÏand€its€forwarding€or€other€agent€with€the€correct€Export€Control€Classification€Number€(ECCN),Ð Ø,€%( Ðor€with€sufficient€technical€information€to€determine€classification.€In€addition,€the€U.S.€principalÏparty€in€interest€must€provide€the€foreign€principal€party€in€interest€or€the€foreign€principalððsÏagent€any€information€that€it€knows€will€affect€the€determination€of€license€authority,€seeÏðð758.1(g)€of€the€EAR.€Ô‡X~òXXX~òÔ€Ô#†X~òXXX~ò#ÔÐ ø   ÐÌ(d)€òòPower€of€attorney€or€other€written€authorizationóó.€€In€routed€export€transactions,€a€forwardingÐ ¸`  Ðor€other€agent€that€represents€the€foreign€principal€party€in€interest,€or€who€applies€for€a€licenseÏon€behalf€of€the€foreign€principal€party€in€interest,€must€obtain€a€power€of€attorney€or€otherÏwritten€authorization€from€the€foreign€principal€party€in€interest€to€act€on€its€behalf.€€SeeÏðð748.4(b)(2)€and€ðð758.1(h)€of€the€EAR.ÌÌò òðð758.4€Use€of€export€license.ó ó€Ð ø  ÐÌ€(a)€òòLicense€valid€for€shipment€from€any€portóó.€€An€export€license€issued€by€BXA€authorizesÐ ¸` Ðexports€from€any€port€of€export€in€the€United€States€unless€the€license€states€otherwise.€€ItemsÏthat€leave€the€United€States€at€one€port,€cross€adjacent€foreign€territory,€and€reenter€the€UnitedÏStates€at€another€port€before€being€exported€to€a€foreign€country,€are€treated€as€exports€from€theÏlast€U.S.€port€of€export.€ÌÌ(b)€€òòShipments€against€expiring€licenseóó.€€Any€item€requiring€a€license€that€has€not€departed€fromÐ ø* #& Ðthe€final€U.S.€port€of€export€by€midnight€of€the€expiration€date€on€an€export€license€may€not€beÐ Ø,€%( Ðexported€under€that€license€unless€the€shipment€meets€the€requirements€of€paragraphs€(b)(1)€orÏ(2)€of€this€section.ÌÌà Ü à(1)€BXA€grants€an€extension;€orÌÌà0 Ü à(2)€Prior€to€midnight€on€the€date€of€expiration€on€the€license,€the€items:Ð Ü(#Ü(# ÐÌà0 Ü àà0Ü(#Ü(#à(i)€Were€laden€aboard€the€vessel;€Ð (#(# ÐÌà0 Ü àà0Ü(#Ü(#à(ii)€Were€located€on€a€pier€ready€for€loading€and€not€for€storage,€and€were€booked€for€aÏvessel€that€was€at€the€pier€ready€for€loading;€orÐ (#(# ÐÌà0 Ü àà  à(iii)€The€vessel€was€expected€to€be€at€the€pier€for€loading€before€the€license€expired,€butÏexceptional€and€unforseen€circumstances€delayed€it,€and€BXA€or€the€U.S.€Customs€ServiceÏmakes€a€judgment€that€undue€hardship€would€result€if€a€license€extension€were€required.Ð Ü(#Ü(# ÐÌ(c)€òòReshipment€of€undelivered€itemsóó.€€If€the€consignee€does€not€receive€an€export€made€under€aÐ X%  Ðlicense€because€the€carrier€failed€to€deliver€it,€the€exporter€may€reship€the€same€or€an€identicalÏitem,€subject€to€the€same€limitations€as€to€quantity€and€value€as€described€on€the€license,€to€theÏsame€consignee€and€destination€under€the€same€license.€€If€an€item€is€to€be€reshipped€to€anyÏperson€other€than€the€original€consignee,€the€shipment€is€considered€a€new€export€and€requires€aÐ Ø,€%( Ðnew€license.€Before€reshipping,€satisfactory€evidence€of€the€original€export€and€of€the€deliveryÏfailure,€together€with€a€satisfactory€explanation€of€the€delivery€failure,€must€be€submitted€by€theÏexporter€to€the€following€address:ÌÌà Ü àOperations€Division€Ìà Ü àBureau€of€Export€AdministrationÌà Ü àU.S.€Department€of€CommerceÌà0 Ü àRoom€2705Ð Ü(#Ü(# Ðà0 Ü à14th€Street€&€Pennsylvania€Avenue,€N.W.Ð Ü(#Ü(# Ðà0 Ü àWashington,€D.C.€€20230Ð Ü(#Ü(# ÐÌò òðð758.5€Conformity€of€documents€and€unloading€of€items.ó óÐ ø  ÐÌ(a)€òòPurposeóó.€€€The€purpose€of€this€section€is€to€prevent€items€licensed€for€export€from€beingÐ ¸` Ðdiverted€while€in€transit€or€thereafter.€€It€also€sets€forth€the€duties€of€the€parties€when€the€itemsÏare€unloaded€in€a€country€other€than€that€of€the€ultimate€consignee€as€stated€on€the€export€license.€ÌÌ(b)€òòConformity€of€documentsóó.€€When€a€license€is€issued€by€BXA,€the€information€entered€onÐ 8'à" Ðrelated€export€control€documents€(òòe.g.óó,€the€SED€or€AES€record,€bill€of€lading€or€air€waybill)€mustÐ )À!$ Ðbe€consistent€with€the€license.ÌÐ Ø,€%( Ð(c)€òòIssuance€of€the€bill€of€lading€or€air€waybillóó.€€Ð X ÐÌà Ü à(1)€òòPorts€in€the€country€of€the€ultimate€consigneeóó.€€No€person€may€issue€a€bill€of€lading€or€airÐ  À Ðwaybill€that€provides€for€delivery€of€licensed€items€to€any€foreign€port€located€outside€theÏcountry€of€the€intermediate€or€the€ultimate€consignee€named€on€the€BXA€license€and€ShipperððsÏExport€Declaration€(SED)€or€AES€electronic€equivalent.ÌÌà Ü à(2)€òòOptional€ports€of€unloadingóó.€€(i)€òòLicensed€itemsóó.€€No€person€may€issue€a€bill€of€lading€orÐ x  Ðair€waybill€that€provides€for€delivery€of€licensed€items€to€optional€ports€of€unloading€unless€allÏthe€optional€ports€are€within€the€country€of€ultimate€destination€or€are€included€on€the€BXAÏlicense€and€SED€or€AES€electronic€equivalent.€€ÌÌà Ü à(ii)€òòUnlicensed€itemsóó.€€For€shipments€of€items€that€do€not€require€a€license,€the€exporter€mayР؀ Ðdesignate€optional€ports€of€unloading€on€the€SED€or€AES€electronic€equivalent€and€other€exportÏcontrol€documents,€so€long€as€the€optional€ports€are€in€countries€to€which€the€items€could€alsoÏhave€been€exported€without€a€license.€€See€also€15€CFR€30.7(h)€of€the€FTSR.ÌÌ(d)€òòDelivery€of€itemsóó.€€No€person€may€deliver€items€to€any€country€other€than€the€country€of€theÐ 8'à" Ðintermediate€or€ultimate€consignee€named€on€the€BXA€license€and€SED€or€AES€record€withoutÏprior€written€authorization€from€BXA,€except€for€reasons€beyond€the€control€of€the€carrier€(suchÏas€acts€of€God,€perils€of€the€sea,€damage€to€the€carrier,€strikes,€war,€political€disturbances€orÐ Ø,€%( Ðinsurrection).ÌÌ(e)€òòProcedures€for€unscheduled€unloadingóó.€€Ð  À Ðà Ü à(1)€òòUnloading€in€country€where€no€license€is€requiredóó.€€When€items€are€unloaded€in€a€countryÐ ø   Ðto€which€the€items€could€be€exported€without€a€license€issued€by€BXA,€no€notification€to€BXA€isÏrequired.€€However,€any€persons€disposing€of€the€items€must€continue€to€comply€with€the€termsÏand€conditions€of€any€License€Exception,€and€with€any€other€relevant€provisions€of€the€EAR.ÌÌà Ü à(2)€òòUnloading€in€a€country€where€a€license€is€requiredóó.€€(i)€When€items€are€unloaded€in€aÐ X Ðcountry€to€which€the€items€would€require€a€BXA€license,€no€person€may€effect€delivery€or€entryÏof€the€items€into€the€commerce€of€the€country€where€unloaded€without€prior€written€approvalÏfrom€BXA.€€The€carrier,€in€ensuring€that€the€items€do€not€enter€the€commerce€of€the€country,Ïmay€have€to€place€the€items€in€custody,€or€under€bond€or€other€guaranty.€€In€addition,€the€carrierÏmust€inform€the€exporter€and€BXA€of€the€unscheduled€unloading€in€a€time€frame€that€will€enableÏthe€exporter€to€submit€its€report€within€10€days€from€the€date€of€unscheduled€unloading.€TheÏexporter€must€within€10€days€of€the€unscheduled€unloading€report€the€facts€to€and€requestÏauthorization€for€disposition€from€BXA€using€either:€mail,€fax,€or€E„mail.€€The€report€to€BXAÏmust€include:Ìà Ü àà  à(A)€A€copy€of€the€manifest€of€the€diverted€cargo;€Ìà Ü àà  à(B)€Identification€of€the€place€of€unloading;Ìà Ü àà  à(C)€Statement€that€explains€why€the€unloading€was€necessary;€andÐ Ø,€%( Ðà Ü àà  à(D)€A€proposal€for€disposition€of€the€items€and€a€request€for€authorization€for€suchÏdisposition€from€BXA.ÌÌà Ü à(ii)€òòContact€informationóó.€U.S.€Department€of€Commerce,€Bureau€of€Export€Administration,Ð ø   ÐOffice€of€Exporter€Services,€Room€1093,€14th€and€Pennsylvania€Avenue,€N.W.,€Washington,ÏD.C.€20230;€phone€number€202„482„0436;€facsimile€number€202„482„3322;€and€E„Mail€address:ÏRPD@BXA.DOC.GOVÌÌò òðð758.6€€Destination€control€statement.ó ó€€The€Destination€Control€Statement€(DCS)€must€beÐ X Ðentered€on€the€invoice€and€on€the€bill€of€lading,€air€waybill,€or€other€export€control€document€thatÏaccompanies€the€shipment€from€its€point€of€origin€in€the€United€States€to€the€ultimate€consigneeÏor€end„user€abroad.€€The€person€responsible€for€preparation€of€those€documents€is€responsible€forÏentry€of€the€DCS.€€The€DCS€is€required€for€all€exports€from€the€United€States€of€items€on€theÏCommerce€Control€List€that€are€not€classified€as€EAR99,€unless€the€export€may€be€made€underÏLicense€Exception€BAG€or€GFT€(see€part€740€of€the€EAR).€€At€a€minimum,€the€DCS€must€state:Ïð ðThese€commodities,€technology€or€software€were€exported€from€the€United€States€in€accordanceÏwith€the€Export€Administration€Regulations.€€Diversion€contrary€to€U.S.€law€is€prohibited.ððÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð 8'à" Ðò òPART€762€„€[AMENDED]ó óÐ )À!$ ÐÔ2/eÔÚ  Ú17Ú  Ú.Ô3  Ô€€Section€762.2€is€amended€by:Ìà Ü àà  àa.€€Revising€the€citation€ð ððð758.1(b)(3)ðð€to€read€ð ððð758.1(h)ðð€in€paragraph€(b)(29);€Ð Ø,€%( Ðà Ü àà  àb.€€Revising€paragraphs€(b)(15),€(b)(30),€(b)(39),€and€(b)€(40);€andÌà Ü àà  àc.€€Adding€a€new€paragraph€(b)(41)€to€read€as€follows:ÌÌò òðð762.2€Records€to€be€retained.ó óÐ ø   Ðà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Р؀ Ð(b)à Ü à*à  à*à ` à*Ð ¸`  Ðà Ü à(15)€ðð750.7,€issuance€of€license€and€acknowledgment€of€conditions;Ìà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð x  ÐÌà Ü à(30)€ðð758.1€and€ðð758.2,€Shipper's€Export€Declaration€or€Automated€Export€System€record;Ìà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð À Ðà Ü à(39)€ðð745.1,€Annual€reports;€€Ìà Ü à(40)€ðð745.2,€End„use€certificates;€andÌà Ü à(41)€ðð758.2(c),€Assumption€writing.Ì€ÌÔ2/eÔÚ  Ú18Ú  Ú.Ô3  Ô€Section€762.7€is€amended€by€revising€the€phrase€ð ðsubpoenas€for€books,€records,€and€otherÏwritings.ðð€to€read€ð ðsubpoenas€requiring€persons€to€appear€and€testify,€or€produce€books,€records,Ïand€other€œwritings.ððññò òññññ€in€parññññagraph€(a)ññññó óññ.›Ð 8'à" ÐÌò òPART€772€„€[AMENDED]ó óÐ ø* #& ÐÐ Ø,€%( ÐÔ2/eÔÚ  Ú19Ú  Ú.Ô3  Ô€€Part€772€is€amended€by:Ìà Ü àa.à0  àRevising€the€definitions€of€€ð ðApplicantðð€,€€ð ðExporterðð,€ð ðForwarding€agentðð,€ð ðIntermediateÐ 8 à Ðconsigneeðð,€ð ðPurchaserðð,€and€ð ðUltimate€Consigneeðð;€Ð (#(# ÐññÔ€&fœ&XX~òÔññà Ü àb.à  àRevising€the€phrase€ð ðShipperððs€Export€Declaration€(SED)ðð€in€the€definition€for€ð ðExport€controlÐ ø   Ðdocumentðð€to€read€ð ðShipperððs€Export€Declaration€(SED)€or€Automated€Export€System€(AES)€recordðð;Ìà Ü àc.à0  àRemoving€the€definition€for€ð ðU.S.€exporterðð;€and€Ð` (#(# Ðà Ü àd.à0  àAdding€definitions€for€ð ðAESðð,€€ð ðAutomated€Export€Systemðð,€ð ðEnd„userðð,€ð ðOrder€Partyðð,€ð ðOtherÐ ¼  Ðparty€authorized€to€receive€licenseðð,€ð ðPrincipal€parties€in€interestðð,€and€ð ðRouted€exportÏtransactionðð€in€alphabetic€order,€to€read€as€follows:Ð (#(# ÐÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*òòÐ äŒ ÐAES.óó€€See€ð ðAutomated€Export€System.ððòòÐ ˜@ ÐÌóóà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*òòÐ ¨ ÐApplicantóó.€The€person€who€applies€for€an€export€or€reexport€license,€and€who€has€the€authority€of€aÐ ´\ Ðprincipal€party€in€interest€to€determine€and€control€the€export€or€reexport€of€items.€€See€ðð748.4€of€theÏEAR€and€definition€for€ð ðexporterðð€in€this€part€of€the€EAR.òòÐ #Ä  ÐÌóóà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð „&,$ ÐòòAutomated€Export€System€(AES)óó.€Ô‡5&fœ&&&fœÔ€AES€is€a€nationwide€system€operational€at€all€ports€and€for€allÐ 8(à & Ðmethods€of€transportationÔ#†&fœ&&5&fœ+8#ÔÔ‡5&fœ&&&fœÔ€through€which€export€shipment€data€required€by€multiple€agencies€is€filedÐ ì)”"( Ðelectronically€to€Customs,€using€the€efficiencies€of€Electronic€Data€Interchange€(EDI).€€AES€provides€anÏalternative€to€filing€paper€Shipper's€Export€Declarations€(SEDs),€so€that€export€information€is€collectedÐ T-ü%, Ðelectronically€and€edited€immediately.€€€For€more€information€about€AES,€visit€the€Bureau€of€CensusÏwebsite€at:€http://www.customs.ustreas.gov/impoexpo/abaesint.htmÔ#†&fœ&&5&fœÛ8#ÔÔ‡5&fœ&&&fœÔÐ  ´ ÐÔ#†&fœ&&5&fœ;#ÔÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð t  ÐòòEnd„useróó.€The€person€abroad€that€receives€and€ultimately€uses€the€exported€or€reexported€items.€€The€end„Ð (Ð Ðuser€is€not€a€forwarding€agent€or€intermediary,€but€may€be€the€purchaser€or€ultimate€consignee.Ô‡&fœ&&&fœÔòòÐ Ü„  ÐÌóóÔ#†&fœ&&&fœ¼<#Ôà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*òòà p àÐ Dì  ÐÌExporteróó.€€The€person€in€the€United€States€who€has€the€authority€of€a€principal€party€in€interest€toÐ ¬T Ðdetermine€and€control€the€sending€of€items€out€of€the€United€States.€€Note€that€the€Foreign€TradeÏStatistics€Regulations€have€a€different€definition€for€the€term€ð ðexporterðð.€€Under€the€FTSR,€the€ð ðexporterððÏis€the€U.S.€principal€party€in€interest€(see€Foreign€Trade€Statistics€Regulations€title€15€part€30).€€ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð 0Ø ÐÌòòForwarding€agentóó.€The€person€in€the€United€States€who€is€authorized€by€a€principal€party€in€interest€toÐ ˜"@  Ðperform€the€services€required€to€facilitate€the€export€of€the€items€from€the€United€States.€€This€mayÏinclude€air€couriers€or€carriers.€€In€routed€export€transactions,€the€forwarding€agent€and€the€exporter€mayÏbe€the€same€for€compliance€purposes€under€the€EAR.ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð +Ä#* ÐòòÐ Ð,x%, ÐIntermediate€consigneeóó.€The€person€that€acts€as€an€agent€for€a€principal€party€in€interest€for€the€purpose€ofÐ X Ðeffecting€delivery€of€items€to€the€ultimate€consignee.€€The€intermediate€consignee€may€be€a€bank,Ïforwarding€agent,€or€other€person€who€acts€as€an€agent€for€a€principal€party€in€interest.ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð (Ð ÐÌòòOrder€Partyóó.€€The€person€in€the€United€States€who€conducted€the€direct€negotiations€or€correspondenceÐ 8  Ðwith€the€foreign€purchaser€or€ultimate€consignee€and€who,€as€a€result€of€these€negotiations,€received€theÏorder€from€the€foreign€purchaser€or€ultimate€consignee.Ìœññà Ü àññ›œññà  àññ›œññà ` àññ›œññà ¸ àññ›œññà  àññ›œññà h àññ›œññò òññññ*à À à*à  à*à p à*à È à*ññññó óññ›Ð ¬T ÐòòOther€party€authorized€to€receive€licenseóó.€€The€person€authorized€by€the€applicant€to€receive€the€license.€Ð ` ÐIf€a€person€and€address€is€listed€in€Block€15€of€the€BXA„748P€Multipurpose€Application€Form,€theÏBureau€of€Export€Administration€will€send€the€license€to€that€person€instead€of€the€applicant.€€DesignationÏof€another€party€to€receive€the€license€does€not€alter€the€responsibilities€of€the€applicant,€licensee€orÏexporter.ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð ˜"@  ÐòòPrincipal€parties€in€interestóó.€Those€persons€in€a€transaction€that€receive€the€primary€benefit,€monetary€orÐ L$ô" Ðotherwise,€of€the€transaction.€€Generally,€the€principals€in€a€transaction€are€the€seller€and€the€buyer.€€InÏmost€cases,€the€forwarding€or€other€agent€is€not€a€principal€party€in€interest.ÌÌà Ü àà  àà ` àà ¸ àÔ‡&fœ&&&fœÔ*à  à*à h à*à À à*à  à*Ô#†&fœ&&&fœŒI#ÔÐ +Ä#* ÐÐ Ð,x%, ÐòòPurchaseróó.€The€person€abroad€who€has€entered€into€a€transaction€to€purchase€an€item€for€delivery€to€theÐ X Ðultimate€consignee.€€In€most€cases,€the€purchaser€is€not€a€bank,€forwarding€agent,€or€intermediary.€€TheÏpurchaser€and€ultimate€consignee€may€be€the€same€entity.ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð (Ð ÐÌòòRouted€export€transactionóó.€€A€transaction€where€the€foreign€principal€party€in€interest€authorizes€a€U.S.Ð 8  Ðforwarding€or€other€agent€to€facilitate€export€of€items€from€the€United€States.ÌÌà Ü àà  àà ` àà ¸ à*à  à*à h à*à À à*à  à*Ð ¬T ÐÌòòUltimate€consigneeóó.€€The€principal€party€in€interest€located€abroad€who€receives€the€exported€orÐ ¼ Ðreexported€items.€€The€ultimate€consignee€is€not€a€forwarding€agent€or€other€intermediaryÔ‡&fœ&&&fœÔ,€but€may€be€theÐ Èp Ðend„user.Ô#†&fœ&&&fœñM#ÔÔ‡&fœ&&&fœÔÐ |$ ÐÌÔ#†&fœ&&&fœaN#Ôà Ü àà  àà ` àà ¸ àÔ‡&fœ&&&fœÔ*à  à*à h à*à À à*à  à*Ô#†&fœ&&&fœéN#ÔÐ ä Œ ÐÌò òPart€774€„€[AMENDED]ó óÐ L$ô" Ðò òSupplement€No.€1€to€Part€774€„„€The€Commerce€Control€Listó óÐ &¨$ ÐÌà Ü àÔ2/eÔÚ  Ú20Ú  Ú.Ô3  Ô€€Supplement€No.€1€to€part€774€(the€Commerce€Control€List),€Category€1€„„€Materials,€Chemicals,Ïð ðMicroorganisms,ðð€and€Toxins,€is€amended€by€revising€the€License€Requirements€section€of€ECCNÏ1C355,€to€read€as€follows:Ð Ð,x%, Ðœ‡ññÔ‡&fœ&XX~òÔññò ò1C355›€€Chemical€Weapons€Convention€(Ô_ÔCWCÔ_Ô)€Schedule€2€and€3€chemicals€and€families€ofÐ X Ðchemicals,€not€controlled€by€Ô_ÔECCNÔ_Ô€1C350€or€by€the€Department€of€State€under€the€Ô_ÔITARÔ_Ô.ó óÐ  ´ ÐÌò òLicense€Requirementsó óÐ t  ÐÌòòReason€for€Controlóó:€€CWÐ Ü„  Ðà Ü àà  àà ` àà ¸ àà  àà h àà À àà  àà p àÌà Ü àà  àòòControl(s)òòóóà ¸ àà  àóóà h àà À àÐ Dì  ÐÌà0 Ü àCW€applies€to€entire€entry.€€A€license€is€required€for€CW€reasons€only€to€CWC€non„States€PartiesÏ(destinations€not€listed€in€Supplement€No.€2€to€part€745),€unless€an€End„Use€Certificate€is€obtained€byÏthe€exporter€€(see€ðð742.18€of€the€EAR).€€See€ðð745.2€of€the€EAR€for€End„Use€CertificateÏrequirements,€and€the€License€Requirements€Notes€of€this€entry.€€The€Commerce€Country€Chart€isÏnot€designed€to€determine€licensing€requirements€for€items€controlled€for€CW€reasons.Ð Ü(#Ü(# ÐÌòòà Ü àóóòòLicense€Requirements€Notesóó:€€Ð ä Œ ÐÌà Ü àà  à1.€€Chemicals€listed€in€this€entry€may€be€shipped€Ô_ÔNLRÔ_Ô€(No€License€Required)€when€destined€toÏmost€Ô_ÔCWCÔ_Ô€States€Parties€(countries€listed€in€Supplement€No.€2€to€part€745).€€€Also€see€LicenseÏRequirement€Note€3.€ÌÌà Ü àà  à2.€€Chemicals€listed€in€this€entry€may€be€shipped€Ô_ÔNLRÔ_Ô€when€destined€to€most€non„States€PartiesÏ(destinations€òònotóó€listed€in€Supplement€No.€2€to€part€745)€if€supported€by€an€End„Use€Certificate€describedÐ Ð,x%, Ðby€ðð745.2€of€the€EAR€and€if€the€Ô_ÔECCNÔ_Ô€is€indicated€on€the€Shipperððs€Export€Declaration€in€theÏappropriate€space€as€provided€in€ðð758.1€of€the€EAR.€€Chemicals€listed€in€this€entry€require€a€license€whenÏexported€to€non„States€Parties€if€the€export€is€not€supported€by€an€End„Use€Certificate€described€byÏðð745.2€of€the€EAR.ÌÌà Ü àà  à3.€€Chemicals€listed€in€this€entry€may€not€be€shipped€Ô_ÔNLRÔ_Ô€if€restrictions€of€other€sections€of€theÏEAR€apply€(e.g.,€see€the€end„use€and€end„user€restrictions€of€part€744€of€the€EAR€and€the€restrictions€thatÏapply€to€embargoed€countries€in€part€746€of€the€EAR).ÌÌà Ü àà  à4.€€€òòMIXTURESóó:€Mixtures€controlled€by€this€entry€that€contain€certain€concentrations€of€precursorÐ ¬T Ðand€intermediate€chemicals€are€subject€to€the€following€requirements:€ÌÌà Ü àà  àà ` àa.€€Mixtures€are€controlled€under€this€entry€when€containing€at€least€one€of€the€chemicalsÏcontrolled€under€1C355.a€when€the€chemical€constitutes€more€than€10€percent€of€the€weight€of€theÏmixture.€€ÌÌà Ü àà  àà ` àb.€€Mixtures€are€controlled€under€this€entry€when€containing€at€least€one€of€the€chemicalsÏcontrolled€under€1C355.b€when€the€chemical€constitutes€more€than€25€percent€of€the€weight€of€theÏmixture.ÌÌà Ü àà  àà ` àc.€€€Mixtures€containing€chemicals€identified€in€this€entry€are€not€controlled€by€Ô_ÔECCNÔ_ÔÏ1C355€when€the€controlled€chemical€is€a€normal€ingredient€in€consumer€goods€packaged€for€retail€saleÏfor€personal€use.€€Such€consumer€goods€are€classified€as€EAR99.€Ð Ð,x%, ЀÌà Ü àà  àà ` àà ¸ àà  àò òNote€to€mixtures:ó ó€€Calculation€of€concentrations.€€€Ð  ´ Ðà Ü àÌà Ü àà  àà ` àà ¸ àà  àa.€€òòExclusionóó.€€No€chemical€may€be€added€to€the€mixture€(solution)€forÐ t  Ðthe€sole€purpose€of€circumventing€the€Export€Administration€Regulations;ÌÌà Ü àà  àà ` àb.€€Absolute€Weight€Calculation.€€When€calculating€the€percentage,€by€weight,€ofÏcomponents€in€a€chemical€mixture,€include€all€components€of€the€mixture,€including€those€that€act€asÏsolvents;ÌÌà Ü àà  àà ` àc.€€Example.€€à  àÐ ` ÐÌ11%€chemical€listed€in€1C355.aÌ39%€chemical€not€listed€in€1C355.aÌòò50%óó€SolventÐ 0Ø Ð100%€MixtureÌÌ11/100€=€11%€chemical€listed€in€1C355.aÌÌIn€this€example,€the€mixture€is€controlled€under€this€entry€because€a€chemical€listed€in€1C355.a.€Ïconstitutes€more€than€10€percent€of€the€weight€of€the€mixture.à0 p àÐh)"(p(#p(# ÐÌà Ü àà  à5.€€òòCOMPOUNDSóó.€€Compounds€created€with€any€chemicals€identified€in€this€Ô_ÔECCNÔ_Ô€1C355€mayÐ Ð,x%, Ðbe€shipped€Ô_ÔNLRÔ_Ô,€unless€those€compounds€are€also€identified€in€this€entry.Ìò òÐ   ´ ÐÌó ó€ò òà Ü àTechnical€Notes:ó ó€€€For€purposes€of€this€entry,€a€"mixture"€is€defined€as€a€solid,€liquid€or€gaseousÐ  ´ Ðproduct€made€up€of€two€or€more€components€that€do€not€react€together€under€normal€storage€conditions.ÌœññÔ#†X~òX&&fœéO#Ôññ›Ìà Ü àà  àà ` àà ¸ àà  à*à h à*à À à*à  à*à p à*Ð (Ð ÐDated:ÌÌÌR.€Roger€MajakÌAssistant€Secretary€Ìfor€Export€Administration