WPCX2 8ir.ʒ d#kMR=͜|7 qqӖQ{lP)g(t߁{lMm15#CڊKlL빐<%[JUziowe Wp*3 $ 1hf g .!1󒊰oaO olDŦƂ&ʺT%vVH7b_RiZ*^<ڔFR`ۤWS7RlwSq1!iCt+34O>0,40Vx"S$zf*`R1н>*7_A+drGgyY1 %tuK=FKlqEn$( qU[ܯe̎yHZ$4E8Ӎe\0<+; ^_=eg{D<8qxVpS##IGXtU-Z#U N % 0( UN) ww 4{    m N ^ 4 0N U O 1o 72 1u, 72 0c 0U6 2 0 0 0 0] 07 0 0 0 0C 0 0 0c 0. 0 0 0} 0< 0@ 06 0h 0C7 0zB 0^ 0# 0 0 0` 0V! 00m!U*!! 0<! 0 " 0>" 0v# 0`}# 0`# 0`=$ 0`$ 0`$ 08]% 0% 02g& 0& 0:' 0Y' 0_(( 0 ( 0j) 0* B*, D/, D+, 0- D/. 0. 06/ 0/ 0:0 0^0 0<Z1U61U >1UN 2HP LaserJet 4100 PCL6 (2)0(9 Z 6Times New Roman RegularX($(hH  Z 6Times New Roman Regular}i+tyle03|xU,s mailto:scook@bxa.doc.gov;(O$6X (8 CSY_ekqw}Numbers 2Numbers1.1.1.1.1.1.1.1.1.3#37=CIQYag1.a.i.(1)(a)(i)1)a)i)(;3$2#  0  .3  0  *+ (_2623  .. 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SUMMARY:TheBureauofIndustryandSecurity(BIS)isreviewingthecurrentlimitforuseof &"% LicenseExceptionTSRforexportsandreexportsoftechnologyandsoftwareontheCommerce (#' ControlList(CCL)oftheExportAdministrationRegulations(EAR)underExportClassification |*%) ControlNumbers(ECCNs)4D001and4E001.TheseECCNscontroltechnologyandsoftware d thatcanbeusedforthedevelopment,production,oruseofcomputers.Thegoalofthisnoticeof < inquiryistocollectinformationfromindustrythatwillassistBISinevaluatingwhetherthe   currentTSReligibilitylevelof33,000MillionsofTheoreticalOperationsperSecond(MTOPS)   forexportsandreexportstomostcountriesshouldbeadjusted,takingintoconsiderationthe  ` controllevelfortheexportofcomputerequipmentandthecontrolpoliciesofothermember 8  countriesoftheWassenaarArrangement. t  DATES:CommentsmustbereceivedbyJuly10,_2002._ $ ADDRESSES:Writtencomments(fourcopies)shouldbesenttoSharronCook,Regulatory p PolicyDivision,OfficeofExporterServices,BureauofIndustryandSecurity,Departmentof H Commerce,14thandPennsylvaniaAvenue,N.W.,P.O.Box273,Room2705,Washington,D.C.   20230;oronecopyEMailedto:4 O  5  scook@bis.doc.gov;6 O   7 l, Ԁorfaxedto2024823355. \ FORFURTHERINFORMATIONCONTACT:SharronCook,SeniorExportPolicyAnalyst,  " OfficeofExporterServices,RegulatoryPolicyDivision,BureauofIndustryandSecurity, #  Telephone:(202)4822440. %X" SUPPLEMENTARYINFORMATION l)#& Background D+$( TheWassenaarArrangementonExportControlsforConventionalArmsandDualUseGoods -&* & ,/,   andTechnologies(Arrangement)isoneoffourmultilateralexportcontrolregimesinwhichthe t UnitedStatesparticipates.TheArrangement'spurposeistocontributetoregionaland L  internationalsecurityandstabilitybypromotingtransparencyandgreaterresponsibilityin $  transfersofconventionalarmsanddualusegoodsandtechnologies(i.e.,havingciviland   militaryuses)topreventdestabilizingaccumulationsofthoseitemsbycountriesofconcern.The ` Arrangementestablisheslistsofitemstowhichmembercountriesaretoapplyexportcontrols. 8  Membergovernmentsimplementthesecontrolstoensurethattransfersofthecontrolleditemsdo   notcontributetothedevelopmentorenhancementofmilitarycapabilitiesthatunderminethe \  goalsoftheArrangement,andarenotdivertedtosupportsuchcapabilities.Inaddition,the 4 Arrangementimposessomereportingrequirementsonitsmembergovernments.   4XXzX446  SH6  #XXzXX4\##XzXXXXz{#XXzXXXzTheU.S.Governmentcontrolsallitemsforexportthatarecontrolledmultilaterallybythe  Arrangement.Ingeneral,theU.S.DepartmentofCommerceadministersexportcontrolsfor s dualusegoodsandtechnologiescontrolledintheArrangement,andtheU.S.Departmentof K Stateadministersexportcontrolsonconventionalarms.6݌ !# Ќ  #XzXXXXz/#ThroughtheExportAdministrationRegulations(EAR),theCommerceDepartmentcontrolsthe G%  exportandreexportoftechnologyandsoftwareforthedevelopment,production,oruseof '" computerswithaCompositeTheoreticalPerformance(CTP)greaterthan28,000Millionsof (!$ TheoreticalOperationsperSecond(MTOPS)underExportControlClassificationNumbers *[#& (ECCNs)4E001and4D001oftheCommerceControlList(CCL).Suchtechnologyrequiresa ,3%( license,fornationalsecurity(NS)reasons,toalldestinationsexceptCanada.However,ECCNs t 4E001and4D001providethatLicenseExceptionTSR(section740.6oftheEAR)isavailable L  forexportsandreexportsofsuchtechnologyandsoftware:1)forcomputersofunlimitedCTPto $  22countries(formermembercountriesoftheCoordinatingCommitteeforMultilateralExport   Controls(COCOM)orformercooperatingcountriesofCOCOM)whenthetransactionmeets ` certaineligibilitycriteria;and2)forcomputerswithaCTPlessthanorequalto33,000MTOPS 8  tocountrieslistedinCountryGroupB(SupplementNo.1topart740).   UndertheWassenaarArrangement,therearecurrentlythreelevelsofsensitivityforcomputers 4 andcomputertechnology.Equipment,technologyandsoftwarearecontrolledforcomputers   withaCTPof28,000MTOPSontheBasicList,75,000MTOPSontheSensitiveList,and p 150,000MTOPSontheVerySensitiveList. H Historically,theU.S.hasrequiredalicenseforanyitemontheWassenaarVerySensitiveList, l andhasmadesuchitemsgenerallyineligibleforlicenseexceptions.However,inMarchofthis D! year,BISimplementedaPresidentialdecisiontoallowexportsandreexportsof_computers_Ԁwitha # CTPofupto190,000MTOPSunderlicenseexceptionCTPtoComputerTier3Countries(see $  section740.7(d)(1)oftheEARforalistofthesecountries)toreflectrapidtechnological &X" advancesincomputingcapability.XzXXXzThePresidentsreporttoCongressstatedthatthischangewas (0!$ to promoteournationalsecurity,enhancetheeffectivenessofourexportcontrolsystemand |*#& easeunnecessaryregulatoryburdensonbothgovernmentandindustry.#XzXXXz^#ԀIndustry,throughthe T,$( RegulationsandProceduresTechnicalAdvisoryCommittee(RPTAC),hasrequestedthatBIS t raisetheCTPlimitforlicenseexceptionTSReligibilityoftechnologyandsoftwareforthe L  development,production,anduseofthesecomputers.Onereasonstatedbyindustryisthat $  companiesneedalimitfortechnologyandsoftwarecorrespondingtothelimitforequipmentin   ordertoprovideforeignnationalsworkingintheirU.S.andforeignmanufacturingplantsaccess ` tothistechnologyandsoftware. 8  ThegoalofthisnoticeistocollectinformationfromindustrythatwillassistBISinevaluating \  thecurrentcontrollevelontheexportofcomputertechnologyandsoftware. 4 4XXzX446  S7p6c"  #XXzXX4%"##XzXXXXzD"#Toensuremaximumpublicparticipationinthereviewprocess,commentsaresolicitedforthe 7 next30daysontheeffectofthecurrentCTPlimitof33,000MTOPSforlicenseexceptionTSR  eligibilityoftechnologyandsoftwareforthedevelopment,production,anduseofcomputers. s BISisinterestedincommentsrelatingtothefollowing:6c""݌ K Ќ  YXzXXXz1)WhatisthepurposeofU.S.companiesinexportingtechnologyandsoftwareforthe o# development,production,anduseofcomputerswithaCTPgreaterthan33,000MTOPS?Are G%  theexportsfortransferstoU.S.subsidiaries,branches,orjointventuresthatmanufacture '" productsabroad;salestoforeignmanufacturers;orlargelyforreleasetoforeignnationalsfor (!$ workdesigninganddevelopingnewproductsintheUnitedStates? *[#&  ,3%( 2)Iftheexportsofsoftwareandtechnologyarelargelytoforeignnationalsforworkin t designinganddevelopingnewproductsintheUnitedStates,whatistheeconomicand L  competitivenessimpactonU.S.industryofmaintainingthecurrentTSRlevel?Does $  maintainingthecurrentlevelimpairthetimelyintroductionofnewproductsintothemarket?   3)WhatpercentageofcurrentemployeesisrestrictedbyTSRlimits?Whatpercentageis 8  expectedtobelimitedin23years?In57years?   4)Whatistheforeignavailabilityoftechnologyandsoftwarefortheproduction,development, 4 anduseofcomputerswithaCTPgreaterthan33,000MTOPS?   5)WhatcontrolsdoU.S.tradepartnersmaintainontheexportoftechnologyandsoftwarefor H thedevelopment,production,anduseofcomputers?WhataretheMTOPSlimitsanddoour   tradepartnersuselicenseexceptionsorotherlicensingmeasures?#XzXXYXz$# l   6)Inlightofrecentchangesinarchitecturesandtechnology,whatperformancelevelscanbe # identifiedforTSRlimits?Whatalternatemethodsormetricsshouldbeconsideredfor $  technologyandsoftwarecontrolunderTSR? &X" 7)Anyotherinformationrelevanttothecurrent_33,000_ԀMTOPSTSRlevel. |*#&  T,$( 8)AdditionalviewsontheformatoflicenseexceptionTSReligibilitylanguage. t Partiessubmittingcommentsareaskedtobeasspecificaspossible.TheDepartmentencourages   interestedpersonswhowishtocommenttodosoattheearliestpossibletime. ` Theperiodforsubmissionofcommentswillclose[INSERT30DAYSAFTERDATEOF   PUBLICATION].TheDepartmentwillconsiderallcommentsreceivedbeforethecloseofthe \  commentperiodindevelopingfinalregulations.Commentsreceivedaftertheendofthe 4 commentperiodwillbeconsideredifpossible,buttheirconsiderationcannotbeassured.The   Departmentwillnotacceptcommentsaccompaniedbyarequestthatapartorallofthematerial p betreatedconfidentiallybecauseofitsbusinessproprietarynatureorforanyotherreason.The H Departmentwillreturnsuchcommentsandmaterialstothepersonssubmittingthecomments   andwillnotconsidertheminthedevelopmentoffinalregulations.Allcommentsonthese l regulationswillbeamatterofpublicrecordandwillbeavailableforpublicinspectionand D! copying.TheDepartmentrequirescommentsbesubmittedinwrittenform. # ThepublicrecordconcerningthesecommentswillbemaintainedXzXXXzintheBureauofIndustryand &X" Security,OfficeofAdministration,U.S.DepartmentofCommerce,Room6883,14thand (0!$ ConstitutionAvenue,NW,Washington,DC20230;(202)482-0637.Thiscomponentdoesnot |*#& maintainaseparatepublicinspectionfacility.RequestersshouldfirstviewBIS'sFOIAwebsite T,$( (whichcanbereachedthroughhttp://www.bis.doc.gov/foia).Iftherecordssoughtcannotbe t locatedatthissite,oriftherequesterdoesnothaveaccesstoacomputer,pleasecallthephone L  numberaboveforassistance.#XzXXXz3#XqXXXz $  #XzXXXq5#DATED: H JamesJ.Jochum    h  D  AssistantSecretary  forExportAdministration