Billing Code: 3510-33-P

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 738, 740, 742, 744, 746, 748, and 752

[Docket No. 980619158-8158-01]

RIN: 0694-AB35

Revisions to the Export Administration Regulations; Conforming Revisions to the Wassenaar Arrangement List of Dual-Use Items and Revisions to Antiterrorism Controls

AGENCY: Bureau of Export Administration, Commerce

ACTION: Interim rule with request for comments.

SUMMARY: On January 15, 1998, the Bureau of Export Administration published an interim rule (63 FR 2452) implementing the Wassenaar Arrangement List of Dual-Use Items. Implementation of the Wassenaar List resulted in a number of changes to the Commerce Control List (CCL). The major changes involved the removal of national security controls on certain items, while maintaining controls on these items for antiterrorism reasons. Consistent with this revision, various antiterrorism Export Control Classification Numbers (ECCNs) were enlarged to accommodate the items removed from national security controls. An easy-to-follow pattern was developed to track the movement of these items. Items formerly classified as a XX001 entry, now default into a xx991 entry. In addition, the January 15 rule moved items from one ECCN into another, or merged two or more ECCNs together. This was done to simplify the CCL and place together items that fall within the same general category. For example, ECCN 9A992 (off-highway tractors) was merged with ECCN 9A993 (on-highway tractors) to form part of a new ECCN 9A990 that also includes diesel engines.

This rule amends the Export Administration Regulations (EAR) by making the necessary conforming revisions throughout the text of the EAR, consistent with the January 15 revisions to the CCL.

DATES: This rule is effective (DATE OF PUBLICATION).

COMMENTS: Comments on this rule must be received on or before (30 DAYS FROM DATE OF PUBLICATION).

ADDRESSES: Written comments should be sent to Patricia Muldonian, Regulatory Policy Division, Bureau of Export Administration, Department of Commerce, P.O. Box 273, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Patricia Muldonian, Regulatory Policy Division, Bureau of Export Administration, Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

On January 15, 1998, the Bureau of Export Administration (BXA) published an interim rule (63 FR 2452) that made changes to the Commerce Control List (CCL) necessary to implement the Wassenaar Arrangement. All items removed from national security controls as a result of the Wassenaar List of Dual-Use Goods and Technologies continue to be controlled for antiterrorism reasons.

Consistent with this revision, various antiterrorism Export Control Classification Numbers (ECCNs) were enlarged to accommodate the items removed from national security controls. In addition, in an effort to simplify and harmonize the antiterrorism controls on the CCL, the January 15 rule made the following renumbering revisions:

OLD ECCN	NEW ECCN	DESCRIPTION OF OLD ECCN

1A988	1A005	Bullet proof and bullet resistant vests

1C993	1C990	Fibrous and filamentary material not controlled by 1C010 or 1C210, for use in "composite" structures and with a specific modulus of 3.18 x 106 m or greater and a specific tensile strength of 7.62 x 104 m or greater

1C994	1C006.d	Fluorocarbon electronic cooling fluids

1E391	1E351	Technology for the disposal of chemicals or microbiological materials controlled by 1C350, 1C351, 1C352, 1C353, or 1C354

2B985	0B986	Equipment specially designed for manufacturing shotgun shells

2B992	2B996	Manual dimensional inspection machines with two or more axes, and measurement uncertainty equal to or less (better) than (3 + L/300) micrometer in any axes (L measured in length in mm)

2B994	2B997	Robots not controlled by 2B007 or 2B207

2D993	2D991	Software specially designed for the development, production, or use of equipment controlled by 2B991, 2B993 or 2B994

2E993	2E991	Technology for the use of equipment controlled by 2B991, 2B992, 2B993, or 2B994

3A992	3A991	Electronic devices and components not controlled by 3A001

3A993	3A992.a	Electronic test equipment, n.e.s.

3A994	3A992.b/c	General purpose electronic equipment not controlled by 3A002

3D994	3D991	Software specially designed for the development, production, or use of electronic devices or components controlled by 3A992, electronic test equipment controlled by 3A993, general purpose electronic equipment controlled by 3A994, or manufacturing and test equipment controlled by 3B991

3E994	3E991	Technology for the development, production, and use of electronic devices controlled by 3A992

5A990	5A991.a	Any type of telecommunication equipment not controlled by 5A001.a

5A991	5A991.b	Transmission equipment, not controlled by 5A001

5A992	5A991.f	Mobile communication equipment, n.e.s.

5A993	5A991.g	Radio relay communications equipment, n.e.s.

5A994	5A991.c.1	Data message switching equipment

5B994	5B991	Telecommunications test equipment

5D990	5D991	Software specially designed for the development, production and use of equipment controlled under 5A990 and 5A991

5D992	5D991	Software specially designed or modified for the development, production, or use of mobile communications equipment

5D993	5D991	Software specially designed or modified for the development, production, or use of radio relay communications equipment

5D994	5D991	Software specially designed or modified for the development, production, or use of data (message) switching equipment

5E992	5E991	Technology for the development, production, or use of mobile communications equipment

5E993	5E991	Technology for the development, production, or use of radio relay communications equipment

5E994	5E991	Technology for the development, production, or use of data (message) switching equipment

5A995	5A992	Information security equipment

5D995	5D992	Software n.e.s., specially designed or modified for the development, production, or use of information security or cryptologic equipment

5E995	5E991	Technology n.e.s., for the development, production, or use of information security or cryptologic equipment

6A994	6A991	Marine or terrestrial acoustic equipment

6A990	6A998	Airborne radar equipment

6D990	6D991	Software specially designed for the development, production, or use of equipment controlled by 6A990, 6A992 or 6A993

6D994	6D991	Software specially designed for the development, production, or use of equipment controlled by 6A994

6E990	6E991	Technology for the development, production, or use of equipment controlled by 6A990, 6A992 or 6A993

8A993	8A992.h	Self-contained under water breathing apparatus

8A994	8A992.f	Boats

8D993	8D992	Software specially designed or modified for the development, production, or use of equipment controlled by 8A993 and 8A994

8E993	8E992	Technology for the development, production, or use of items controlled by 8A993 and 8A994

9A990	9A991.e	Pressurized aircraft breathing equipment, n.e.s.; and specially designed parts therefor, n.e.s.

9A992	9A990.b	Off-highway tractors

9A993	9A990.c	On-highway tractors

9A994	9A991.d	Aircraft parts and components

9B994	9B990	Vibration test equipment

Although the Export Administration Act (EAA) expired on August 20, 1994, the President invoked the International Emergency Economic Powers Act and continued in effect the EAR, and, to the extent permitted by law, the provisions of the EAA in Executive Order 12924 of August 19, 1994, as extended by the President's notices of August 15, 1995 (60 FR 42767), August 14, 1996 (61 FR 42527) and August 13, 1997 (62 FR 43629).

Rulemaking Requirements

1. This interim rule has been determined to be not significant for purposes of E.O. 12866.

2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with a collection of information, subject to the requirements of the Paperwork Reduction Act (PRA), unless that collection of information displays a currently valid OMB Control Number. This rule involves a collection of information subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) This collection has been approved by the Office of Management and Budget under control number 0694-0088. Send comments regarding these burden estimates or any other aspect of these collections of information, including suggestions for reducing the burden, to OMB Desk Officer, New Executive Office Building, Washington, DC 20503.

3. This rule does not contain policies with Federalism implications sufficient to warrant preparation of a Federalism assessment under Executive Order 12612.

4. The provisions of the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, the opportunity for public participation, and a delay in effective date, are inapplicable because this regulation involves a military and foreign affairs function of the United States (Sec. 5 U.S.C. 553(a)(1)). Further, no other law requires that a notice of proposed rulemaking and an opportunity for public comment be given for this interim rule. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 5 U.S.C. or by any other law, the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq. ) are not applicable.

However, because of the importance of the issues raised by these regulations, this rule is issued in interim form and comments will be considered in the development of final regulations.

Accordingly, the Department encourages interested persons who wish to comment to do so at the earliest possible time to permit the fullest consideration of their views.

The period for submission of comments will close (30 DAYS AFTER DATE OF PUBLICATION). The Department will consider all comments received before the close of the comment period in developing final regulations. Comments received after the end of the comment period will be considered if possible, but their consideration cannot be assured. The Department will not accept public comments accompanied by a request that a part or all of the material be treated confidentially because of its business proprietary nature or for any other reason. The Department will return such comments and materials to the person submitting the comments and will not consider them in the development of final regulations. All public comments on these regulations will be a matter of public record and will be available for public inspection and copying. In the interest of accuracy and completeness, the Department requires comments in written form.

Oral comments must be followed by written memoranda, which will also be a matter of public record and will be available for public review and copying. Communications from agencies of the United States Government or foreign governments will not be made available for public inspection.

The public record concerning these regulations will be maintained in the Bureau of Export Administration Freedom of Information Records Inspection Facility, Room 4525, Department of Commerce, 14th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20230. Records in this facility, including written public comments and memoranda summarizing the substance of oral communications, may be inspected and copied in accordance with regulations published in Part 4 of Title 15 of the Code of Federal Regulations. Information about the inspection and copying of records at the facility may be obtained from Margaret Cornejo, Bureau of Export Administration Freedom of Information Officer, at the above address or by calling (202) 482-5653.

List of Subjects

15 CFR parts 738 and 742

Exports, Foreign trade.

15 CFR parts 740, 748, and 752

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

15 CFR part 744

Exports, Foreign Trade, Reporting and recordkeeping requirements.

15 CFR part 746

Embargoes, Exports, Foreign Trade, Reporting and recordkeeping requirements.

Accordingly, parts 738, 740, 742, 744, 746, 748, and 752 of the Export Administration Regulations (15 CFR parts 730-799) are amended as follows:

1. The authority citation for part 732 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

2. The authority citation for part 738 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq, 1701 et seq.; 10 U.S.C. 7420, 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 287c, 3201 et seq., 6004; Sec. 201, Pub. L. 104-58, 109 Stat. 557 (30 U.S.C. 185(s)), 185(u); 42 U.S.C. 2139a, 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

3. The authority citation for part 740 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13020, 3 CFR, 1996 Comp. p. 219; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

4. The authority citation for part 742 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; 18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 3 CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 3 CFR, 1996 Comp. p. 219; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

5. The authority citation for 15 CFR part 744 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 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. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

6. The authority citation for 15 CFR part 746 continues to read as follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; 22 U.S.C. 287c, 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

7. The authority citation for 15 CFR part 748 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq, 1701 et seq.; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

8. The authority citation for 15 CFR part 752 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13020, 3 CFR, 1996 Comp. p. 219; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

PART 738 - [AMENDED]

9. Section 738.3 is amended by revising the heading of paragraph (a)(2)(B) to read as follows:

§738.3 Commerce Country Chart structure.

* * * * *

(a) * * *

(2) * * *

(B) ECCNs 0A986, 0A988, 0B986, 1A005, 2A994, 2D994, and 2E994. * * *

* * * * *

PART 740 - [AMENDED]

10. Supplement No. 1 to section 740.11 is amended:

a. By revising paragraph (a)(3); and

b. By revising paragraph (b)(3), to read as follows:

§740.11 Governments and international organizations (GOV)

* * * * *

Supplement No. 1 to §740.11 - Additional Restrictions on Use of License Exception GOV

(a) * * *

(3) Regional stability items controlled under Export Control Classification Numbers (ECCNs) 6A002, 6A003, 6E001, 6E002, 7D001, 7E001, 7E002, 7E101, 9A018, 9D018 and 9E018 as described in 742.6(a) of the EAR; or

* * * * *

(b) * * *

(3) Regional stability items controlled under Export Control Classification Numbers (ECCNs) 6A002, 6A003, 6E001, 6E002, 7D001, 7E001, 7E002, 7E101, 9A018, 9D018 and 9E018 as described in 742.6(a) of the EAR; or

* * * * *

11. Section 740.16 is amended:

a. By revising paragraph (b)(2); and

b. By revising paragraph (i), to read as follows:

§740.16 Additional permissive reexports (APR).

* * * * *

(b) * * *

(2) Commodities controlled for nuclear nonproliferation or missile technology reasons.

* * * * *

(i) Reexports to Sudan of items controlled by ECCNs 2A994, 3A992.a, 5A991.f, 5A992, 6A991, 6A998, 7A994, 8A992.d, .e, .f, and .g, 9A990.a and .b, and 9A991.d and .e. In addition, items in these ECCNs are not counted as controlled U.S. content for purposes of determining license requirements for U.S. parts, components, and materials incorporated in foreign-made products. However, the export from the United States to any destination with knowledge that they will be reexported directly or indirectly, in whole or in part to Sudan is prohibited without a license.

* * * * *

PART 742 - [AMENDED]

12. In §742.2, paragraphs (a)(1)(ii) and (a)(2)(iii) are amended by revising the phrase "(ECCNs 1E001 and 1E391)" to read "(ECCNs 1E001 and 1E351)".

13. Section 742.7(a)(1) is amended by revising the phrase "6E001 (for police-model infrared viewers only), and 9A980." to read "6E001 (for police-model infrared viewers only), 6E002 (for police-model infrared viewers only), and 9A980."

14. Section 742.8 is amended by revising paragraph (a)(2) to read as follows:

§742.8 Anti-terrorism: Iran

* * * * *

(a) * * *

(2) If AT column 1 or AT column 2 of the Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a license is required for reexport to Iran for anti-terrorism purposes, except for ECCNs 2A994, 3A992.a, 5A991.f, 5A992, 6A991, 6A998, 7A994, 8A992.d, .e, .f, and .g, 9A990.a and .b, and 9A991.d and .e. In addition, items in these ECCNs are not counted as controlled U.S. content for the purpose of determining license requirements for U.S. parts, components or materials incorporated into foreign made products. However, the export from the United States to any destination with knowledge that they will be reexported directly or indirectly, in whole or in part to Iran is prohibited without a license. See paragraph (a)(5) of this section for controls maintained by the Department of the Treasury.

* * * * *

15. Section 742.9(b)(1)(iv) is amended by revising the phrase "except for ECCNs 6A990, 7A994, and 9A994," to read "except for ECCNs 6A998, 7A994, and 9A991.d,".

16. Section 742.10 is amended by revising paragraph (a)(2) to read as follows:

§742.10 Anti-terrorism: Sudan

(a) * * *

(2) If AT column 1 or AT column 2 of the Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a license is required for reexport to Sudan for anti-terrorism purposes, except for ECCNs 2A994, 3A992.a, 5A991.f, 5A992, 6A991, 6A998, 7A994, 8A992.d, .e, .f, and .g, 9A990.a and .b, and 9A991.d and .e. In addition, items in these ECCNs are not counted as controlled U.S. content for the purpose of determining license requirements for U.S. parts, components or materials incorporated into foreign made products. However, the export from the United States to any destination with knowledge that they will be reexported directly or indirectly, in whole or in part to Sudan is prohibited without a license.

* * * * *

17. Supplement No. 2 to part 742 is amended:

a. By revising the phrase "controlled by 9A994:" to read "controlled by ECCN 9A991.d:" in paragraph (c)(6)(i)(C);

b. By revising the phrase "ECCNs 5A001.c and 5A994." to read "ECCNs 5A001.c and 5A991.c.1" in the heading of paragraph (c)(29); and

c. By revising the phrase "described in ECCN 1C994" to read "described in ECCN 1C006.d" in the heading of paragraph (c)(33).

PART 744 - [AMENDED]

18. Section 744.8 is amended by revising paragraph (b) to read as follows:

§744.8 Restrictions on certain exports to all countries for Libyan aircraft.

* * * * *

(b) Scope of products subjects to end-use prohibition for Libyan aircraft. The general end-use prohibition in paragraph (a) of this section applies to items controlled by ECCNs 6A008, 6A108, 6A998, 7A001, 7A002, 7A003, 7A004, 7A006, 7A101, 7A102, 7A103, 7A104, 7A994, 9A001, 9A003, 9A018.a, 9A101, and 9A991.

* * * * *

PART 746 - [AMENDED]

19. Section 746.4(c)(6) is amended by revising the phrase "ECCN 9A992" to read "ECCN 9A990.b".

20. Section 746.7 is amended by revising paragraph (a)(2)(ii) to read as follows:

§746.7 Iran.

* * * * *

(a) * * *

(2) * * *

(ii) To reexport to Iran any of the items identified in §746.7(a)(2)(i) of this section, except for ECCNs 2A994, 3A992.a, 5A991.f, 5A992, 6A991, 6A998, 7A994, 8A992.d, .e, .f, and .g, 9A990.a and .b, and 9A991.d and .e. However, the export of these items from the United States to any destination with knowledge that they will be reexported, in whole or in part, to Iran, is prohibited without a license; or

* * * * *

21. Section 746.8 is amended by revising paragraph (b)(1)(ii) to read as follows:

§746.8 Rwanda.

* * * * *

(b) * * *

(1) * * *

(ii) Items described by any ECCN ending in "018", and items described by ECCNs 0A982, 0A984, 0A986, 0A988, 0B986, 1A005, 5A980, 6A002.a.1, a.2, a.3, and .c, 6A003.b.3 and b.4, 6E001, 6E002, and 9A991.a.

* * * * *

PART 748 - [AMENDED]

22. Supplement No. 2 to part 748 is amended by revising paragraphs (h)(1)(i)(G) and (h)(1)(ii)(H) to read as follows:

SUPPLEMENT NO. 2 TO PART 748 - UNIQUE LICENSE APPLICATION REQUIREMENTS

* * * * *

(h) * * *

(1) * * *

(i) * * *

(G) Description of capabilities related to "real time processing" and receiving computer aided-design.

* * * * *

(ii) * * *

(H) Slide motion test results.

* * * * *

PART 752 - [AMENDED]

23. Section 752.3(a)(2) is amended by revising the phrase "1E001, 1E350, 1E391, 2B352," to read "1E001, 1E350, 1E351, 2B352,".

DATED:

R. Roger Majak

Assistant Secretary

for Export Administration