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Vu1סqzܝvSjޟVР2Q)?ڥFq.A;N> b(Rb j^Q2"yNgEw$QT:GI.G@5Yh_$(O[L4,`w( Fܔ V(sGWѬ9_E:=OMS>,6OZMJ7 $3T9]^?{l}˵pCY,`K QдK6׻idΈS1|bXZ 3,R*D),'uG |vɟO[WRO$lxmcd)8`3uXE &T/GSa̛N7Ici"Kd _ȉ*'!> /+'j`a La Do&us'C yWBG#@U-N %O 0(Uw}4NUN^ U(>U@> 1u~ 72% m' 72> 0Up 0 0 0 0e 0? 0 0 0 0C 0 0 0k 06 0 0 0 0B 0 0@ 0 0! 0" 0\# 0!$ 0$ 0% 0N^&^&^&^& 0 c&&& 0w' 0' 0( 0( 0d) 0+* 0+ 0D++++++++z9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9-9- 1U--------------------------------------------------------------------------------------------- 1_..........6g.2.HP LaserJet 4100 PS0(9 Z 6Times New Roman RegularX($13|x(hH  Z 6Times New Roman Regular}2s \  `&Times New Roman(O Z(Times New Roman 3#37=CIQYag1.a.i.(1)(a)(i)1)a) i) U *+ (_2623  ..*D+J (_25   ," <DL,23  ..  2( 4 <DL2  *A+J (_24   ) <DL)23  ..  2( 4 <DL2  *>+J (_23  ` &<<DL&23  ..  2( 4 <DL2  *;+J (_22   #DL#23  ..  2( 4 <DL2  *8+J (_21    DL 23  ..  2( 4 <DL2  *5+J (_20  h DDL23  ..  2( 4 <DL2  *2+J (_19   L23  ..  2( 4 <DL2  */+J (_18    L23  ..  2( 4 <DL2  * (_1723  Ԁ*DJ (_16   ," <DL,23  Ԁ  2( 4 <DL2  *AJ (_15   ) <DL)23  Ԁ  2( 4 <DL2  *>J (_14  ` &<<DL&23  Ԁ  2( 4 <DL2  &2M $_    x 23   5+ ` hp x 5  *;J (_13   #DL#23  Ԁ  2( 4 <DL2  *8J (_12    DL 23  Ԁ  2( 4 <DL2  *5J (_11  h DDL23  Ԁ  2( 4 <DL2  *2J (_10   L23  Ԁ  2( 4 <DL2  (/J &_9    L23  Ԁ  2( 4 <DL2  ( &_823  (DJ &_7   ," <DL,23   2( 4 <DL2  (AJ &_6   ) <DL)23   2( 4 <DL2  (>J &_5  ` &<<DL&23   2( 4 <DL2  (;J &_4   #DL#23   2( 4 <DL2  (8J &_3    DL 23   2( 4 <DL2  (5J &_2  h DDL23   2( 4 <DL2  (2J &_1   L23   2( 4 <DL2  (O$(;3$2#  0  .3  0  (O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(#({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#0p(#(#2#     )3  0p(#p(# http://www.bis.doc.gov/DeemedExports/DeemedExportsFAQs.html.(359=AEIMQ33$37;?CGKOS-*+xhttp://www.regulations.govmailto:scook@bis.doc.gov !  _ XXXX8aXXdd8pp4(#BillingCode:351033P#XaXX X+# XaXXXa  d (#(#K(##XaXX Xa# XaXXXaԈDEPARTMENTOFCOMMERCE#XaXX XaM#  XaXXXa   #XaXX Xa#  XaXXXaBureauofIndustryandSecurity#XaXX Xa#  XaXXXa  `    `  #XaXX Xai# XaXXXa15_CFR_ԀParts#XaXX Xa# XaXXXaԀ734and772 t  [DocketNo.050316075507501] $ _RIN_:0694-AD29 p RevisionandClarificationofDeemedExportRelatedRegulatoryRequirements#XaXX XaS# XaXXXa   AGENCY:BureauofIndustryandSecurity,Commerce. 4      " ACTION:AdvanceNoticeofProposed_Rulemaking_. #  #XaXX Xa{# XaXXXaSUMMARY:TheBureauofIndustryandSecurity(BIS)isreviewingtherecommendations '0!$ containedintheU.S.DepartmentofCommerceOfficeofInspectorGeneralReportentitledf  g f  g  l)#&  DeemedExportControlsMayNotStoptheTransferofSensitiveTechnologytoForeign D+$( NationalsintheU.S.(FinalInspectionReportNo._IPE_Ԅ16176March2004).Certainofthese -&* recommendationswouldrequireregulatorychangesthatwouldaffectexistingrequirementsand d policiesfordeemedexportlicenses.BISisseekingcommentsonhowtheserevisionswould < affectindustry,theacademiccommunity,f  g f  g andU.S.f  g f  g governmentagenciesinvolvedinresearchf  g f  g .   DATES:CommentsmustbereceivedbyMay27,_2005._  ` #XaXX Xa#ADDRESSES:Youmaysubmitcomments,identifiedby_RIN_Ԁ0694AD29,byanyofthe t  followingmethods: L   ($33 "13"    13H 2$3  0 `   Federal_eRulemaking_ԀPortal:4 -O  5  http://www.regulations.gov6 -O   7 G Ԁ.Followthe $ instructionsforsubmittingcomments.13H ݌` (#` (# Ќ  "13"    13O 2$3  0 `   Email:4 -O  5  scook@bis.doc.gov6 -O   7 .Include _RIN_Ԁ0694AD29inthesubjectlineofthe p message.13O ݌H` (#` (# Ќ  "13"    13F2$3  0 `   Fax:202482335513F݌ ` (#` (# Ќ  "13"    132$3  0 `   MailorHandDelivery/Courier:U.S.DepartmentofCommerce,Bureauof \ IndustryandSecurity,RegulatoryPolicyDivision,14th&PennsylvaniaAvenue, 4  _N.W._,Room2705,Washington,D.C.20230,ATTN:_RIN_Ԁ0694AD29. XaXXXa13R݌ "` (#` (# Ќ    FORFURTHERINFORMATIONCONTACT:AlexLopes,Director,DeemedExportsand %X" ElectronicsDivision,BureauofIndustryandSecurity,Telephone:(202)482-4875,oremail: '0!$ alopes@bis.doc.gov.Copiesofthereferenced_OIG_ԀReportareavailableatf  g f  g  l)#& http://_www.oig.doc.gov_/_oig_/reports/2004/BIS-_IPE_-16176-03-2004._pdf_Ԁ D+$(  -&* SUPPLEMENTARYINFORMATION d  Background    Initsreport,thef  g f  g OfficeofInspectorGeneral(f  g f  g _OIG_f  g f  g )f  g f  g ԀconcludedthatexistingBISf  g f  g f  g f  g policiesunderthe  ` ExportAdministrationRf  g f  g egulationsf  g f  g f  g f  g (EAR)f  g f  g Ԁcouldenableforeignnationalsfromcountriesand 8  entitiesofconcerntoaccessotherwisecontrolledtechnology . #XaXX Xa# XaXXXaԀf  g f  g f  g f  g Adoptingthe_OIG_sf  g f  g  t  recommendationstoaddresstheseconcernswouldf  g f  g f  g f  g entailf  g f  g Ԁregulatoryorotheradministrative T  f  g f  g f  g f  g actionf  g f  g Ԁthatwouldf  g f  g f  g f  g clarifyf  g f  g Ԁthedefinitionof usetechnologysubjecttotheEAR,basethe , requirementforadeemedexportlicenseonaforeignnationalscountryofbirth,andmodify  regulatoryguidanceonf  g f  g f  g f  g licensingoftechnologytoforeignnationalsworkingf  g f  g Ԁwithgovernmentf  g f  g f  g f  g Ԅ x f  g f  g sponsoredresearchandresearchconductedf  g f  g f  g f  g inuniversitiesf  g f  g .#XaXX Xa# XaXXXaԀ P  Definitionof UseTechnology  d The_OIG_Ԁstatedthatconfusionexistedoverthedefinitionandimplementationofcontrols " associatedwiththe useofequipmentbyforeignnationalsintheUnitedStates.f  g f  g f  g f  g In772.1of #  thef  g f  g EAR,theterm useisdefinedas: Operation,installation(includingonsiteinstallation), %`" maintenance(checking),repair,overhaul,andrefurbishing.f  g f  g Ԁf  g f  g ԀThe_OIG_Ԁexpressedconcernaboutf  g f  g  '8!$ f  g f  g thef  g f  g f  g f  g presenceoff  g f  g Ԁthewordf  g f  g f  g f  g Ԁ andf  g f  g Ԁinthedefinitionf  g f  g f  g f  g beinginterpretedtomeanf  g f  g Ԁthatalloftheactivities t)#& f  g f  g f  g f  g enumeratedinthedefinitionmustf  g f  g Ԁbef  g f  g f  g f  g presentinorderf  g f  g Ԁtoconstitute use. L+$(  $-&* The_OIG_Ԁf  g f  g f  g f  g concludedthatwhereas,underthe usedefinition,BISgrantsapprovalforforeign d entitiestof  g f  g operate,install,maintain,repair,overhaul,andrefurbishf  g f  g Ԁequipmentf  g f  g f  g f  g Ԁf  g f  g exportedfromthe < UnitedStatesinordertopermitthef  g f  g enduserthef  g f  g fullrangeofusesforanf  g f  g f  g f  g exporteditemf  g f  g ,thesamef  g f  g f  g f  g     usef  g f  g definitionf  g f  g Ԁdidnotseemtoapplytodeemedexports(f  g f  g f  g f  g i.e.f  g f  g f  g f  g ,f  g f  g Ԁtof  g f  g Ԁforeignnationals usingthef  g f  g f  g f  g    f  g f  g equipmentintheUnitedStates).The_OIG_Ԁconcludedthatitwouldbeunlikelythatoneindividual  ` wouldhavetheresponsibilityorf  g f  g f  g f  g capabilityf  g f  g Ԁofaccomplishingallf  g f  g f  g f  g oftheenumeratedf  g f  g Ԁtasksf  g f  g Ԁthat 8  togetherconstitute usef  g f  g Ԁinmostsituations.Inaddition,f  g f  g f  g f  g the_OIG_f  g f  g Ԁalsonotedthattwoofthefour t  #XaXX Xa# XaXXXamultilateralcontrolregimes#XaXX Xa/# XaXXXa ^\X Xaf  g f  g f  g f  g Ԁf  g f  g Ԁ# XaX\ ^/##XaXX Xaa/# XaXXXadefinedthetermf  g f  g Ԁ usef  g f  g Ԁeitherwithan or,orwithoutany L  f  g f  g f  g f  g conjunctionf  g f  g Ԁ(f  g f  g f  g f  g i.e.f  g f  g f  g f  g ,abulletf  g f  g f  g f  g pointlistf  g f  g Ԁoftheactivities).f  g Ԁ $ The_OIG_Ԁfurtherconcludedthatthisdifferenceininterpretationiscriticalindetermininghowto p implementandenforcethedeemedexportprovisionsintheEAR.The_OIG_Ԁreportedthatf  g f  g U.S. H academicandf  g f  g f  g f  g ff  g f  g ederalresearchf  g f  g f  g f  g institutionsf  g f  g Ԁgenerallyusethefundamentalresearchexemption   undertheEARformostoftheresearchtheyconduct.However,whenequipmentisusedby \ foreignnationalsataU.S.universityorf  g f  g f  g f  g ff  g f  g ederalresearchfacilityf  g f  g ,f  g f  g Ԁthe_OIG_Ԁconcludedthatitis 4  mostlikelyaccompaniedbysometransmittalofuseorotherinformationorinstruction  " constituting technology.Accordingtothe_OIG_,manyoftheacademicandf  g f  g f  g f  g ff  g f  g ederalofficialsthe #  _OIG_Ԁmetwithhadnotcontemplatedthetransferoftechnologyassociatedwiththe useof %X" equipmentasadeemedexportf  g f  g f  g f  g ;f  g f  g Ԁotherscontendedthatthetransferof usetechnologyrelatedto '0!$ equipmentinf  g f  g f  g f  g furtherancef  g f  g Ԁoffundamentalresearchisexemptundertheregulations. The_OIG_ l)#& suggestedthatf  g f  g f  g f  g f  g f  g f  g f  g f  g f  g BISrevisethedefinitionof useinf  g f  g Ԁ772.1ofthef  g f  g f  g f  g EAR#XaXX Xae0# XaXXXaԀtoreplacetheword and D+$( withtheword or,asfollows: -&* Ї w(83#XaXX Xa=# XaXXXa Use.(AllcategoriesandGeneralTechnologyNote)Meansallaspectsof use,suchas: d operation,installation(includingonsiteinstallation)maintenance(checking),repair,overhaulf  g f  g f  g f  g f  g f  g ,or < refurbishing.#XaXX Xa># XaXXXa    f  g f  g Useoff  g f  g ForeignNationalsCountryofBirthasCriterif  g f  g f  g f  g onf  g f  g ԀforDeemedExportLicense  ` Requirement  8   ($38wT>#XaXX Xa@# XaXXXaCurrentBISf  g f  g Ԁdeemedexportlicenserequirementsarebasedonaforeignnationalsmostrecent L  citizenshiporpermanentresidency.The_OIG_Ԁexpressedconcernthatthispolicyallowsforeign $ nationalsoriginallyfromcountriesofconcerntoobtainaccesstocontrolledf  g f  g f  g f  g dualusef  g f  g Ԁtechnology  withoutscrutinyiftheymaintaincurrentcitizenshiporpermanentresidentstatusf  g f  g f  g f  g inf  g f  g Ԁacountryto p whichtheexportofthetechnologywouldnotrequirealicense.Forexample,transferof H technologytoanIranianwhohasestablishedpermanentresidencyorcitizenshipinCanada   wouldf  g f  g Ԁbetreatedf  g f  g ,forexportlicensingpurposesundertheexistingguidelines,f  g f  g Ԁasadeemedexport \ toaCanadianforeignnational.Thispolicyisdescribedinthedeemedexportguidanceprovided 4  ontheBISwebsiteat:4C -O  5  http://www.bis.doc.gov/DeemedExports/DeemedExportsFAQs.html.6H-OH   7~!HԀ#XaXX XaC# XaXXXa  " The_OIG_ԀrecommendedthatBISamenditspolicytorequireU.S.f  g f  g f  g f  g organizationsf  g f  g Ԁtoapplyfora %X" deemedexportlicenseforemployeesorvisitorswhoareforeignnationalsandhaveaccessto '0!$ f  g f  g f  g f  g dualusef  g f  g Ԁcontrolledtechnologyiftheywereborninacountrywherethetechnologytransferin l)#& questionf  g f  g wouldrequireanexportlicense,f  g f  g Ԁregardlessoftheirmostrecentcitizenshiporpermanent D+$( f  g f  g f  g f  g residencyf  g f  g . -&* Ї #XaXX XaI# XaXXXaClarificationofSupplementalQuestionsandAnswersonGovernmentSponsoredResearch d andFundamentalResearch  < ЀThe_OIG_Ԁreviewedthequestionsandanswersinf  g f  g Supplementf  g f  g ԀNo.f  g f  g Ԁ1toPart734ofthef  g f  g f  g f  g EARf  g f  g .#XaXX XaM# XaXXXaԀf  g f  g f  g f  g _OIG_f  g f  g    notedthatf  g f  g f  g f  g whereas#XaXX Xa#P# XaXXXaf  g f  g Ԁthequestionsandanswersdidnotcoverallscenarios,theintentwastohelp  ` potentiallicenseapplicantsunderstandhowBISf  g f  g f  g f  g appliestheEARtospecificfactsf  g f  g .The_OIG_ 8  reportedthatitconsideredtwooftheanswersprovidedmaybeinaccurateorunclear. t  f  g f  g AnswertoQuestionA(4) $ f  g f  g QuestionA(4)fromf  g f  g f  g f  g Sf  g f  g upplementf  g f  g ԀNo.1topart734f  g f  g ,whichfallsunderthe publicationof p technologycategory,discusseswhether prepublicationclearancebyagovernmentsponsor(in H thiscasef  g f  g theDepartmentoff  g f  g Energy)wouldvoidthef  g f  g exemptionintheEARf  g f  g Ԁformaterialtobe   publishedf  g f  g Ԁandtriggerthedeemedexportf  g f  g f  g f  g Ԁrule.See734.7.(PublishedInformationandSoftware). \ f  g f  g ԀTheanswerstatesf  g f  g f  g f  g , no...thef  g f  g ԀtransactionisnotsubjecttotheEAR.The_OIG_Ԁstatedthatf  g f  g ,f  g f  g  4  accordingtof  g f  g f  g f  g 734f  g f  g .11oftheEAR,ifresearchisfundedbytheU.S.governmentandnational  " securitycontrolsareinplacetoprotectanyresultinginformation,theresearchissubjecttothe #  EAR. %X"  #XaXX XaQ# XaXXXaInitscommentsonthe_OIG_Ԁreport,BISconcurredwiththe_OIG_ԀthattheanswertoQuestionA(4) l)#& requiresclarification.#XaXX XaA[# XXXXaԀBISstatedthatitproposedtomodifyintheanswertoQuestionA(4)to D+$( state,byreferencetoQuestionA(2)inthisSupplement,that,ifthegovernmentsponsorreviewer -&* imposedrestrictionsonpublicationoftheresearch,thenthetechnologywouldcontinuetobe d subjecttotheEAR.#XaXX XM\# XaXXXa < f  g f  g AnswertoQuestionD(1)   #XaXX Xa]#f  g f  g  XaXXXa X Xa # XaX ^##XaXX Xa^# XaXXXaQuestionD(1),whichfallsunderthe research,correspondence,andinformalscientific H  exchangescategory,discusseswhetheralicensewouldberequiredforaforeigngraduate    studentto workinalaboratory.Theanswerf  g f  g providedinthesupplementf  g f  g states, notifthe   researchonwhichtheforeignf  g f  g f  g f  g Ԁf  g f  g studentisworkingqualifiesasfundamentalresearch....f  g f  g f  g f  g  l However,becausef  g f  g Ԁallowingscientists,engineers,f  g f  g f  g f  g Ԁf  g f  g orstudentstoworkinalaboratorymay D necessitatetheir useofequipment,f  g f  g Ԁthe_OIG_Ԁstatedthatf  g f  g Ԁthisanswermayleadf  g f  g Ԁapotentiallicense  applicantf  g f  g f  g f  g tof  g f  g Ԁassumethat use_ofequipment_Ԁiscoveredunderthefundamentalresearch X exemption. 0  #XaXX XaW_# XaXXXaInitscommentsonthe_OIG_Ԁreport,BISagreedthattheanswertoquestionD(1)requires | clarification.#XaXX Xae# XXXXaԀBISproposestorevisetheanswerforD(1)toqualifythestatementthatnolicense !T isrequired,bystatingthat,whereasnolicenseisrequiredforthetransferoftechnologyto #,  conduct fundamentalresearch,alicensemayberequiredif,inconductingfundamental h%" research,theforeigngraduatestudentneedsaccesstotechnologyto useequipmentifthe @' $ exportoftheequipmenttothestudentwouldrequirealicenseundertheEAR#XaXX Xf# XXXXa. )"&  ,d&* #XaXX X(i# RequestforComments  XXXXa d f  g f  g TheDepartmentofCommerceisinterestedinevaluatingtheimpactthatthechanges   recommendedbythe_OIG_ԀwouldhaveonU.S.industry,f  g f  g academicf  g f  g f  g f  g institutionsf  g f  g ,U.S.f  g f  g f  g f  g gf  g f  g overnment   agencies,andholdersofexportcontrolledtechnology.  ` Toensuref  g f  g publicparticipationinthereviewprocess,f  g f  g BISissolicitingf  g f  g commentsf  g f  g forf  g f  g Ԁ60daysf  g f  g Ԁon t  thisproposalf  g f  g .BISisparticularlyinterestedinf  g f  g viewsonf  g f  g theimpactthef  g f  g Ԁproposalf  g f  g Ԁwillhavef  g f  g on L  f  g f  g f  g f  g technologydevelopersandmanufacturers,academicinstitutions,andU.S.f  g f  g Ԁgovernmentresearch $ facilities.#XaXX Xi# XaXXXaBISisinterestedinreceivingspecificinformationregardingtheimpactofthe  regulations,e.g.,dataonthenumberofforeignnationalsintheUnitedStateswhowillface p licensingrequirementsifthe_OIG_srecommendationswereadopted,andimpactofcompliance H withthenewlicensingrequirementscost,resources,procedures.BISf  g f  g isalsointerestedin   receivinganyalternativesuggestionsregardingtheconcernsraisedbythe_OIG_. \ #XaXX Xa~p# f  g  XaXXXa g f  g f  g #XaXX Xags# XaXXXaPartiessubmittingcommentsareaskedtobeasspecificaspossible.f  g f  g f  g f  g BISf  g f  g Ԁencouragesinterested  " personswhowishtocommenttodof  g f  g f  g f  g sof  g f  g Ԁattheearliestpossiblef  g f  g f  g f  g datef  g . #  #XaXX Xas# XaXXXaTheperiodforsubmissionofcommentswillclose[INSERT60DAYSAFTERPUBLICATION '0!$ DATE]BISwillconsiderallcommentsreceivedbeforethecloseofthecommentperiodin l)#& developingafinalrule.Commentsreceivedaftertheendofthecommentperiodwillbe D+$( consideredifpossible,buttheirconsiderationcannotbeassured.BISwillnotacceptpublic -&* commentsaccompaniedbyarequestthatapartorallofthematerialbetreatedconfidentially d becauseofitsbusinessproprietarynatureorforanyotherreason.BISwillreturnsuchcomments < andmaterialstothepersonssubmittingthecommentsandwillnotconsidertheminthe   developmentofthefinalrule.Allpubliccommentsonthisproposedrulemustbeinwriting   (includingfaxoremail)andwillbeamatterofpublicrecord,availableforpublicinspectionand  ` copying.TheOfficeofAdministration,BureauofIndustryandSecurity,U.S.Departmentof 8  Commerce,displaysthesepubliccommentsonBIS'sFreedomofInformationAct(_FOIA_)Web t  siteathttp://www.bis.doc.gov/foia.Thisofficedoesnotmaintainaseparatepublicinspection L  facility.Ifyouhavetechnicaldifficultiesaccessingthiswebsite,pleasecallBIS'sOfficeof $ Administrationat(202)4820637forassistance.#XaXX XaUv#   XaXXXa & %X Xa#& % % &|#f  g  & % %& ListofSubjects    #& % % &,}##XaX %&|#15_CFR_ԀPart734  Ѐ XXXXa  Administrativepracticeandprocedure,Exports,Inventionsandpatents,Research X Scienceandtechnology.#XaXX X~# !0   l#  15_CFR_ԀPart772 < Ѐ  Exports.    XaXXXa & %X XaDATED:March23,2005  8 MatthewS.Borman H  DeputyAssistantSecretary \  forExportAdministration#& % % &h##XaX %&#