[Federal Register: July 30, 2004 (Volume 69, Number 146)]
[Rules and Regulations]
[Page 46069-46088]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30jy04-33]
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Part VII
Department of Commerce
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Bureau of Industry and Security
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15 CFR Parts 732, 738, 740 et al.
Export and Reexport Controls for Iraq; Interim Final Rule
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 732, 738, 740, 742, 744, 746, 747, 750, 758, 762, 772
and 774
[Docket No. 040302078-4078-01]
RIN 0694--AC84
Export and Reexport Controls for Iraq
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule amends the Export Administration Regulations (EAR)
to implement the reversion to the Department of Commerce from the
Department of the Treasury of the licensing responsibility for exports
and reexports to Iraq of items subject to the EAR. In addition, a
license will be required for certain transfers within Iraq of items
subject to the EAR. This rule is consistent with United Nations
Security Council Resolutions 1483 (2003) and 1546 (2004), which lifted
the comprehensive United Nations trade embargo imposed on Iraq but
retained an embargo on arms and related materiel and their means of
production.
DATES: This rule is effective July 30, 2004. Comments must be received
on or before August 30, 2004.
ADDRESSES: Written comments should be sent to Sheila Quarterman,
Regulatory Policy Division, Bureau of Industry and Security, Department
of Commerce, P.O. Box 273, Washington, DC 20044, or to e-mail:
squarter@bis.doc.gov. The Bureau of Industry and Security Freedom of
Information Records Inspection Facility is located at Room 6881,
Department of Commerce, 14th Street and Pennsylvania Avenue, NW.,
Washington, DC 20230. Send comments regarding the burden estimate or
any other aspect of the collections of information, including
suggestions for reducing the burden, to David Rostker, Office of
Management and Budget (OMB), by e-mail to David_Rostker@omb.eop.gov,
or by fax to (202) 395-7285; and to the Regulatory Policy Division,
Bureau of Industry and Security, Department of Commerce, P.O. Box 273,
Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy
Controls Division, Office of Nonproliferation and Treaty Compliance,
Bureau of Industry and Security, Department of Commerce, P.O. Box 273,
Washington, DC 20044; telephone: (202) 482-4252, or e-mail:
jroberts@bis.doc.gov. Information about the inspection and copying of
records at the facility may be obtained from the Bureau of Industry and
Security Freedom of Information Officer at the above address or by
calling (202) 482-0500.
SUPPLEMENTARY INFORMATION:
Background
This rule establishes the new export control policy for exports to
Iraq under the licensing responsibility of the Bureau of Industry and
Security (BIS). The new export control policy reflects changed
circumstances in Iraq and is consistent with changes in U.S. legal
authorities concerning Iraq and actions taken by the United Nations
Security Council with respect to the embargo against Iraq.
The President has signed an Executive Order terminating the
national emergency declared in Executive Order 12722, revoking it and
certain related Executive Orders. Among other things, the termination
of the national emergency in those Executive Orders ends the Department
of the Treasury's authority to maintain export controls pursuant to
those orders and related regulations, namely the Iraqi Sanctions
Regulations, 31 CFR part 575. By virtue of this action, primary export
licensing jurisdiction reverts to BIS.
In addition, Section 1503 of the Emergency Wartime Supplemental
Appropriations Act, 2003 (Pub. L. 108-11), authorized the President to
make inapplicable, with respect to Iraq, Section 620A of the Foreign
Assistance Act and any other provision of law applicable to countries
that have supported terrorism. On May 7, 2003, the President exercised
this authority by the issuance of Presidential Determination 2003-23,
which, among other things, suspended the application of the provisions
of the Iraq Sanctions Act of 1990 (Pub. L. 101-513), except section
586E (relating to penalties). In particular, the President's action
suspended the requirement in section 586G(a)(3) of the Iraq Sanctions
Act that items controlled under sections 5 and 6 of the Export
Administration Act (50 U.S.C. App. 2401 et seq.) (EAA) be prohibited
for export to Iraq and made inapplicable with respect to Iraq section
620A of the Foreign Assistance Act and any other provision of law that
applies to countries that have supported terrorism.
Further, on May 22, 2003, the United Nations Security Council
(UNSC) adopted Resolution 1483 that lifted the comprehensive UNSC trade
sanctions on Iraq while retaining restrictions on the sale or supply to
Iraq of arms and related materiel and their means of production.
Resolution 1483 also reiterated certain provisions of related UNSC
Resolutions 707 of August 15, 1991, and 687 of April 3, 1991. In
particular, those provisions require that Iraq eliminate its nuclear
weapons program and restrict its nuclear activities to the use of
isotopes for medical, industrial or agricultural purposes. Such
provisions further mandate the elimination of Iraq's chemical and
biological weapons programs as well as its ballistic missile program.
Sale or supply by U.S. entities that would make a material contribution
to any of these programs is prohibited.
Finally, on June 8, 2004, the UNSC adopted Resolution 1546. In this
resolution, the UNSC decided that prohibitions related to the sale or
supply to Iraq of arms and related materiel under previous resolutions
shall not apply to such items required by the Interim Government of
Iraq or the Multinational Force in Iraq to serve the purposes of the
resolution. Provisions in UNSC Resolutions 687 and 707 noted above are
not affected by UNSC Resolution 1546.
License Requirements for Exports and Reexports to Iraq and Certain
Transfers Within Iraq
Overview
The new Iraq export licensing policy significantly reduces the
level of control over commercial exports to Iraq while retaining
restrictions on the export of multilaterally-controlled items and other
sensitive items to Iraq in keeping with Iraq's new economic and
security status. The licensing requirements and licensing policy
reflected in this rule are consistent with UNSC Resolution 1483 (2003)
and other relevant resolutions which lifted the comprehensive trade
embargo imposed on Iraq but retained certain restrictions including an
embargo on arms and related materiel and their means of production.
This rule is designed to address two significant foreign policy
goals with respect to Iraq. In particular, this rule furthers the goal
of ensuring that exports and reexports of controlled items destined to
civil infrastructure rebuilding do not suffer undue licensing delays.
At the same time, in furtherance of applicable UNSC Resolutions and
U.S. foreign policy interests, this rule revises section 746.3 of the
Export Administration Regulations (15 CFR parts 730-799) (EAR) and
retains substantial restrictions on exports to Iraq destined for
inappropriate end-users or end-uses. In addition, this rule addresses
certain transactions involving
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the transfer of items subject to the EAR within Iraq.
Items for Which Export License Requirements Are Generally Lifted
Under this rule, items subject to the EAR but not listed on the
Commerce Control List (15 CFR part 774) (CCL) (i.e., EAR99 items) will
generally not be subject to a license requirement except pursuant to
the end-user and end-use controls set forth in part 744 of the EAR and
revised section 746.3 of the EAR. Items controlled only for anti-
terrorism (AT) reasons on the CCL, except for items controlled under
six Export Control Classification Numbers (ECCNs), will also not be
subject to a licensing requirement, except for the end-use and end-user
requirements noted above. The six ECCNs controlled for AT reasons only
for which licensing requirements are imposed by this rule are: 0B999
(Specific processing equipment such as hot cells and glove boxes
suitable for use with radioactive materials), 0D999 (Specific software
for neutronic calculations, radiation transport calculations and
hydrodynamic calculations/modeling), 1B999 (Specific processing
equipment such as electrolytic cells for fluorine production and
particle accelerators), 1C992 (Commercial charges containing energetic
materials, n.e.s.), 1C999 (Specific Materials, n.e.s.) and 6A992
(Optical Sensors, not controlled by 6A002). Please note that this rule
retains AT controls for items controlled under ECCNs 1C995 (Certain
mixtures and testing kits) and 1C997 (Ammonium Nitrate).
As a result, in most instances, the new policy will allow the
export or reexport to Iraq, or the transfer within Iraq, without a
license, of items classified as EAR99 or controlled only for AT
reasons.
Also, the de minimis rules applicable to Iraq are amended to
provide generally that reexports of items to Iraq from abroad are
subject to the EAR only when U.S.-origin controlled content in such
items exceeds 25% (as opposed to the existing 10%).
Items for Which Export License Requirements Will Be Retained
This rule retains license requirements for the export or reexport
of items on the multilateral export control regime lists, the Wassenaar
Arrangement, the Nuclear Suppliers' Group, the Australia Group and the
Missile Technology Control Regime, and items controlled for crime
control (CC) or regional stability (RS) reasons. These license
requirements are set forth in part 742 of the EAR and are reflected in
the relevant columns of the Country Chart in Supplement No. 1 to part
738 of the EAR. Certain categories of items that are controlled for
reasons not included on the Country Chart (e.g., encryption (EI), short
supply (SS), and Chemical Weapons (CW)) also require a license for
export or reexport to Iraq or transfer within Iraq.
New License Requirements
A license is required for the transfer within Iraq of any item
subject to the EAR exported or reexported pursuant to a specific
license issued by the Department of the Treasury or a Department of
Commerce specific license or License Exception.
Section 746.3 of this rule imposes a license requirement for the
export, reexport, or transfer of items subject to the EAR if, at the
time of the export, reexport, or transfer, you know, have reason to
know, or are informed by BIS that the item will be, or is intended to
be, used in Iraq for a ``military end-use'' or by a ``military end-
user'', as defined in that section. This license requirement does not
apply to exports, reexports, or transfers of items for the official use
by personnel or agencies of the U.S. Government or exports, reexports,
or transfers to the Interim Government of Iraq or the Multinational
Force in Iraq. This new license requirement is in addition to the
existing license requirements established pursuant to the Enhanced
Proliferation Control Initiative (EPCI), as set forth in part 744 of
the EAR. The EPCI requirements will now also apply to the transfer
within Iraq of any item subject to the EAR, if, at the time of the
transfer, you know, have reason to know, or are informed by BIS that
the item will be used in the design, development, production or use of
weapons of mass destruction or the means of their delivery.
In addition, transfers within Iraq to designated terrorists or
terrorist organizations, as set forth in sections 744.12, 744.13, or
744.14 of the EAR, and transfers to any persons referenced in new
section 744.18 of the EAR, will require a license.
In addition to the license requirements described above, items on
the CCL controlled for united nations (UN) reasons (including shotgun
shells controlled under ECCN 0A986) will require a license for export
or reexport to Iraq or transfer within Iraq, except exports, reexports
or transfers to the Interim Government of Iraq or the Multinational
Force in Iraq.
In this rule, BIS also will delete from the CCL the entry for ECCN
6A018, ``Magnetic, pressure, and acoustic underwater detection devices
specially designed for military purposes and controls and components.''
References to ECCN 6A018 in entries for ECCNs 6E001 and 6E002 also will
be removed. BIS has determined that no items subject to the EAR are
controlled under this entry. Such items are subject to the export
licensing authority of the U.S. Department of State Division of Defense
Trade Controls.
Licensing Policy
Except as set forth in revised section 746.3, license applications
for exports or reexports to Iraq and certain transfers within Iraq will
be reviewed on a case-by-case basis pursuant to applicable licensing
policies set forth in parts 742, 744 or elsewhere in the EAR.
Such review will be conducted consistent with UNSC Resolutions 1483
and 1546, and relevant resolutions, including UNSC Resolutions 687 and
707. UNSC Resolution 1483 reaffirms Iraq's disarmament obligations
contained in prior UNSC resolutions relating to nuclear, chemical and
biological weapons as well as ballistic missiles (defined for Iraq as
those capable of a range greater than 150 kilometers). UNSC Resolutions
1483 and 1546 also retain restrictions on the sale or supply to Iraq of
arms and related materiel and their means of production, and limit
Iraq's civil or military nuclear activity, except for use of isotopes
for medical, industrial or agricultural purposes. UNSC Resolution 1546
affirms these restrictions, while permitting exports, reexports, and
transfers to the Interim Government of Iraq or the Multinational Force
in Iraq.
Reason for Control: Chemical and Biological Weapons (CB)
CB-controlled exports and reexports to Iraq, and transfers within
Iraq, will be reviewed on a case-by-case basis. Unless the export,
reexport, or transfer is determined to contribute to the building of
Iraqi civil infrastructure, there will be a general policy of denial
for CB-controlled items.
Reason for Control: Nuclear Nonproliferation (NP)
NP-controlled exports and reexports to Iraq, and transfers within
Iraq, will be reviewed on a case-by-case basis. Unless the export,
reexport, or transfer is determined to contribute to the building of
Iraqi civil non-nuclear infrastructure, there will be a general policy
of denial for subsystems or components or any nuclear weapons research,
development, support, or manufacturing facilities.
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Reason for Control: National Security (NS)
NS-controlled machine tool equipment, software and technology
exports and reexports to Iraq, and transfers within Iraq, will be
reviewed on a case-by-case basis. Unless the export, reexport, or
transfer is determined to contribute to the building of Iraqi civil
infrastructure, there will be a general policy of denial for items for
the production, research, design, development, support, maintenance or
manufacture of Iraqi weapons of mass destruction or ballistic missiles
(for Iraq, defined as those with a range of 150 km or greater) or arms
and related materiel.
Reason for Control: Missile Technology (MT)
MT-controlled exports and reexports to Iraq, and transfers within
Iraq, will be reviewed on a case-by-case basis. Unless the export,
reexport, or transfer is determined to contribute to the building of
Iraqi civil infrastructure, there will be a general policy of denial
for major parts, repair and production facilities related to ballistic
missiles with a range greater than 150 kilometers.
Licensing Policy Specific to Section 746.3 (Iraq)
As specified in section 746.3(b)(1), applications for the export or
reexport to Iraq, or transfer within Iraq, of items controlled on the
Commerce Control List for NS, MT, NP, CW, CB, RS, CC, EI, SI, XP or UN
reasons will be subject to a policy of denial if destined for use in
Iraqi civil nuclear or military nuclear activity. An exception exists
for use of isotopes for medical, industrial or agricultural purposes,
which will be reviewed on a case by case basis.
As specified in section 746.3(b)(2), applications for the export or
reexport to Iraq, or transfer within Iraq, of machine tools controlled
for NS and/or nuclear non-proliferation reasons, as well as any items
controlled for CC or UN reasons (including under ECCN 0A986) or under
ECCNs that end in the number ``018'', that would make a material
contribution to the production, research, design, development, support,
maintenance or manufacture of Iraqi weapons of mass destruction or
ballistic missiles or arms and related materiel will also be subject to
a general policy of denial.
As specified in section 746.3(b)(3), applications for the export or
reexport to Iraq and transfer within Iraq, of items controlled for AT
reasons under ECCNs 0B999, 0D999, 1B999, 1C992, 1C995, 1C997, 1C999 and
6A992 will be reviewed on a case-by-case basis to determine if they
would contribute to the building of Iraqi civil infrastructure.
Applications determined not to contribute to the building of Iraqi
civil infrastructure will be subject to a general policy of denial.
Pursuant to section 746.3(b)(4), applications for the export or
reexport to Iraq, or transfer within Iraq, of items that will be, or
are intended to be, used for a ``military end-use'' or destined to a
``military end-user'' will be subject to a policy of denial.
License Exceptions
License Exceptions Available Generally to Group D Countries
The rule removes Iraq from Country Group E:1, found in Supplement 1
to part 740. Iraq has been added to Country Group D:1 and remains in
Country Groups D:2, D:3 and D:4. Although Iraq currently remains on the
list of designated terrorist-supporting countries, the anti-terrorism
(AT) controls that apply to such countries under section 6(j) of the
EAA will not apply to Iraq pursuant to Presidential Determination 2003-
23. Countries in Country Group D:1 are of concern for national security
reasons. Countries in Country Groups D:2, D:3 and D:4 are of concern
for weapons proliferation reasons. As a result of Iraq's inclusion in
Country Groups D:1 to D:4, the following License Exceptions may be
available: CIV, CTP, TMP, RPL, GOV, GFT, TSU, BAG, AVS, ENC and KMI. A
specific transaction is eligible for a License Exception only if it
satisfies all of the terms and conditions of the relevant License
Exception and is not excluded by any of the restrictions that apply to
all License Exceptions, as set forth in the EAR (including,
specifically, section 740.2).
Expanded License Exception Availability
The rule adds Iraq to Computer Tier 3 for exports or reexports of
high performance computers under License Exception CTP (section 740.7
of the EAR). Countries in Tier 3 are eligible to receive computers up
to and including 190,000 MTOPS (millions of theoretical operations per
second) under License Exception CTP. Certain transfers within Iraq of
computers up to and including 190,000 MTOPS will now require a license.
The export or reexport to Iraq of high performance computers
exceeding 190,000 MTOPS continues to require a license. In addition,
transfers within Iraq of computers exceeding 190,000 MTOPS will now
also require a license.
Special License(s): Special Iraq Reconstruction License (SIRL)
This rule further establishes a new part 747 of the EAR entitled
Special Iraq Reconstruction License (SIRL). Part 747 authorizes exports
or reexports to Iraq, or transfers within Iraq, of items in furtherance
of civil reconstruction and other projects funded by specified entities
including the United States Government. Also included are projects
funded by the United Nations, the World Bank, and the International
Monetary Fund, and their affiliated entities (i.e., International Bank
for Reconstruction and Development, International Finance Corporation,
and United Nations Development Programme) as well as any other entities
the U.S. Government may designate. All items subject to the EAR except
items controlled for missile technology (MT), nuclear nonproliferation
(NP), or chemical and biological weapons (CB) reasons are eligible for
export or reexport under a SIRL.
Applicants may apply for a SIRL by submitting a completed BIS
Multipurpose Application form (BIS-748P), Item Appendix (BIS-748P-A),
and End-User Appendix (BIS-748P-B), plus narrative statements, as
described in section 747.4 of new part 747. BIS will process SIRL
applications expeditiously. To approve a SIRL, BIS must be satisfied
that the parties to the license will adhere to the conditions of the
license and the EAR and that approval of the application will not be
detrimental to U.S. national security, nonproliferation, or other
foreign policy interests. A license is required to transfer within Iraq
any item exported or reexported pursuant to a SIRL to an end-user not
identified on the end-user appendix.
Savings Clause
Among other things, the termination of the national emergency
declared in Executive Order 12722 ends the export prohibition in that
and related Executive Orders and in OFAC's Iraqi Sanctions Regulations,
31 CFR part 575. However, to facilitate a smooth transition of
licensing responsibility from OFAC to BIS, this rule extends the
validity of licenses issued by OFAC for Iraq. For those specific
licenses with specified expiration dates, such dates will continue to
apply. Licenses without specified expiration dates will be valid
through July 30, 2005.
Items licensed by OFAC and subsequently returned from Iraq to the
United States do not require further authorization from BIS. However,
persons returning items to the United
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States that were previously exported or reexported to Iraq under a
specific license granted by OFAC will be subject to a recordkeeping
requirement set forth in revised section 746.3(e) of the EAR.
In addition, items exported or reexported to Iraq under a specific
license granted by OFAC may not be transferred within Iraq to a new
end-user without a license from BIS. Reexports of items previously
exported or reexported to Iraq under a specific license granted by OFAC
must conform with relevant provisions of the EAR based on the country
to which the items are being reexported. In certain circumstances, such
reexports may be eligible for a License Exception or may not require a
license. Such reexports will also be subject to the recordkeeping
requirement set forth in section 746.3(e) of the EAR.
Other Provisions
Consistent with Executive Order 13315 of August 28, 2003
(``Blocking Property of the Former Iraqi Regime, its Senior Officials
and Their Family Members, and Taking Certain Other Actions''), this
rule amends the EAR to create a new section 744.18 that creates a
license requirement for exports, reexports, or transfers, of any item
subject to the EAR to persons designated in or pursuant to Executive
Order 13315. These persons include individuals and entities listed in
the Annex to Executive Order 13315, as well as persons subsequently
designated pursuant to criteria set forth in the order.
OFAC includes the names of persons designated pursuant to Executive
Order 13315 in Appendix A to 31 CFR Chapter V, which lists persons
subject to various sanctions programs administered by OFAC. All persons
designated in or pursuant to Executive Order 13315 are identified in
Appendix A by the bracketed initials [IRAQ2].
To avoid duplication, U.S. persons are not required to seek
separate BIS authorization for an export, reexport, or transfer, to a
person identified in section 744.18 of any item subject to both the EAR
and regulations maintained by OFAC. You should consult with OFAC
concerning transactions subject to OFAC licensing requirements.
U.S. persons must seek authorization from BIS for the export,
reexport, or transfer, to a person identified in section 744.18 of any
item subject to the EAR but not subject to regulations maintained by
OFAC (e.g., deemed exports). Non-U.S. persons must seek authorization
from BIS for the export from abroad, reexport, or transfer, to a person
identified in section 744.18 of any item subject to the EAR.
Applications for licenses for the export, reexport, or transfer, to a
person identified in section 744.18 of any item subject to the EAR will
be subject to a general policy of denial.
Although the EAA expired on August 30, 2001, Executive Order 13222
of August 17, 2001 (66 FR 44025, August 22, 2001), as extended by the
Notice of August 7, 2003 (68 Fed. Reg. 47833, August 11, 2003),
continues the EAR in effect under the International Emergency Economic
Powers Act.
This action is taken after consultation with the Secretary of
State. BIS submitted a foreign policy report to the Congress indicating
the imposition of new foreign policy controls on July 28, 2004.
Rulemaking Requirements
1. This interim rule has been determined to be significant for
purposes of E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to, nor shall any person be subject to a penalty for failure
to comply with a collection of information, subject to the Paperwork
Reduction Act (PRA), unless that collection of information displays a
currently valid OMB Control Number. This rule involves a collection of
information approved by the Office of Management and Budget under
control numbers 0694-0088, ``Multi-Purpose Application,'' which carries
a burden hour estimate of 58 minutes for a manual or electronic
submission and 0694-0129, ``Special Iraq Reconstruction License'' which
carries a maximum annual burden of 3.5 hours per applicant. The Special
Iraq Reconstruction License (SIRL) process authorizes special project-
based licenses for exports and reexports in support of Iraq
reconstruction. Public comment is sought regarding whether the
collection of information requirements are necessary for the proper
performance of the functions of the agency, including whether the
information shall have practical utility; the accuracy of the burden
estimates; ways to enhance the quality, utility, and clarity of the
information to be collected; and ways to minimize the burden of the
collection of information, including the use of automated collection
techniques or other forms of technology. Send comments regarding this
burden estimate or any other aspect of these collections of
information, including suggestions for reducing the burden, to David
Rostker, Office of Management and Budget (OMB), by e-mail to
David_Rostker@omb.eop.gov, or by fax to (202) 395-7285; and to the Regulatory
Policy Division, Bureau of Industry and Security, Department of
Commerce, P.O. Box 273, Washington, DC 20044.
3. This rule does not contain policies with Federalism implications
sufficient to warrant preparation of a Federalism assessment under
Executive Order 13132.
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 (See 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 Title 5 U.S.C. 553 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 being issued in interim form and BIS will
consider comments in the development of the final regulations.
Accordingly, the Department of Commerce (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 August 30, 2004.
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 persons 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
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theUnited States Government and general comments from foreign
governments will not be available for public inspection.
The public record concerning this regulation will be maintained in
the Bureau of Industry and Security Freedom of Information Records
Inspection Facility (see ADDRESSES above). 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 the Bureau of Industry and
Security Freedom of Information Officer. (See FOR FURTHER INFORMATION
CONTACT section above.)
List of Subjects
15 CFR Parts 732, 740, 747, 750, and 758
Administrative practice and procedure, Exports, Foreign trade,
Reporting and recordkeeping requirements.
15 CFR Parts 738, 742, 772, and 774
Exports, Foreign trade.
15 CFR Part 744
Exports, Foreign trade, Reporting and recordkeeping requirements.
15 CFR Part 746
Embargoes, Exports, Foreign trade, Reporting and recordkeeping
requirements.
15 CFR Part 762
Administrative practice and procedure, Business and Industry,
Confidential business information, Exports, Foreign trade, Reporting
and recordkeeping requirements.
0
Accordingly, parts 732, 738, 740, 742, 744, 746, 747, 750, 758, 762,
772 and 774 of the Export Administration Regulations (15 CFR parts 730-
799) are amended as follows:
PART 732--[AMENDED]
0
1. The authority citation for 15 CFR part 732 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 68 FR
47833, 3 CFR, 2003 Comp., p. 328.
Sec. 732.1 [Amended]
0
2. Section 732.1 is amended:
0
a. By revising the phrase ``Cuba, Iran and Iraq.'' in the next to last
sentence of paragraph (d)(2) to read ``Cuba and Iran.''; and
0
b. By revising the phrase ``countries subject to a comprehensive
embargo (e.g., Cuba, Iran and Iraq),'' in (d)(3) to read ``countries
subject to a comprehensive embargo (e.g., Cuba and Iran),''.
0
3. Section 732.3 is amended by revising paragraph (d)(4) to read as
follows:
Sec. 732.3 Steps regarding the ten general prohibitions.
* * * * *
(d) * * *
(4) Destinations subject to embargo provisions. The Country Chart
does not apply to Cuba and Iran; and for those countries you should
review the embargo provisions at part 746 of the EAR and may skip this
step concerning the Country Chart. For Iraq and Rwanda, the Country
Chart provides for certain license requirements, and part 746 of the
EAR provides additional requirements.
PART 738--[AMENDED]
0
4. The authority citation for 15 CFR part 738 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(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; 30 U.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; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec.
221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783;
0
5. Supplement No. 1 to part 738 is amended by revising the entry for
``Iraq'' to read as follows:
Supplement No. 1 to Part 738--Commerce Country Chart
Commerce Country Chart
[Reason for control]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Chemical & biological Nuclear National security Missile Regional stability Firearms Crime control Anti-Terrorism
weapons nonproliferation -------------------- tech -------------------- Convention -------------------------------------------------
Countries -------------------------------------------------- ------------- ----------------
CB 1 CB 2 CB 3 NP 1 NP 2 NS 1 NS 2 MT 1 RS 1 RS 2 FC 1 CC 1 CC 2 CC 3 AT 1 AT 2
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Iraq\1\........................................................ X X X X X X X X X X .............. X X
* * * * * * *
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This country is subject to sanctions implemented by the United Nations Security Council. See part 746 for additional information and licensing requirements that apply to exports and reexports to the countries so marked. See also
Sec. 746.3 for license requirements for exports and reexports to Iraq or transfers within Iraq. Although most items controlled only for AT reasons do not require a license to Iraq, some items do require a license. See Sec.
746.8 for license requirements for exports and reexports to Rwanda.
PART 740--[AMENDED]
0
6. The authority citation for 15 CFR part 740 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
Sec. 901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996
Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783;
Notice of August 7, 2003, 68 FR 47833, 3 CFR, 2003 Comp., p. 328.
0
7. Section 740.2 is amended:
0
a. By revising the phrase ``to an embargoed destination (Cuba, Iran and
Iraq)'' of paragraph (a)(6) to read ``to a comprehensively embargoed
destination (Cuba and Iran)''; and
0
b. By amending paragraph (a)(8)(ii) by inserting ``or (v)'' before the
semicolon; and
0
c. By adding new paragraph (d) to read as follows:
Sec. 740.2 Restrictions on all License Exceptions
* * * * *
(d) See Sec. 746.3 for restrictions on certain transfers within
Iraq of items exported or reexported to Iraq pursuant to a License
Exception.
* * * * *
0
8. Section 740.7 is amended:
0
a. By revising the phrase ``Cuba, Iran, Iraq, North Korea, Sudan, or
Syria,'' in paragraph (b)(2) to read ``Cuba, Iran, North Korea, Sudan,
or Syria,'' and
0
b. By revising paragraph (d)(1) to read as follows:
Sec. 740.7 Computers (CTP).
* * * * *
[[Page 46075]]
(d) Computer Tier 3--(1) Eligible countries. The countries that are
eligible to receive exports and reexports under this License Exception
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia,
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina, Bulgaria, Cambodia,
China (People's Republic of), Comoros, Croatia, Djibouti, Egypt,
Georgia, India, Iraq, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan,
Laos, Latvia, Lebanon, Macau, Macedonia (The Former Yugoslav Republic
of ), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar,
Russia, Serbia and Montenegro, Saudi Arabia, Tajikistan, Tunisia,
Turkmenistan, Ukraine, United Arab Emirates, Uzbekistan, Vanuatu,
Vietnam, and Yemen. As of May 2, 2002, Latvia is moved to Computer Tier
1.
* * * * *
0
9. Section 740.9 is amended by revising paragraph (c)(2) to read as
follows:
Sec. 740.9 Temporary, imports, exports, and reexports (TMP).
* * * * *
(c) * * *
(1) * * *
(2) Eligible countries. Encryption software controlled under ECCN
5D002 is not eligible for export or reexport to a country in Country
Group E:1 under the provisions of this paragraph (c). All other beta
test software is eligible for export or reexport to all destinations,
except Cuba, Iran, and Sudan under the provisions of this paragraph
(c).
* * * * *
Sec. 740.11 [Amended]
0
10. Section 740.11 is amended by revising the phrase ``Cuba, Iran,
Iraq, Libya, North Korea, Sudan, or Syria,'' in paragraph (c)(2)(i) to
read ``Cuba, Iran, Libya, North Korea, Sudan, or Syria,''.
Sec. 740.13 [Amended]
0
11. Section 740.13 is amended:
0
a. By revising the phrase ``Cuba, Iran, Iraq, Libya, North Korea, Sudan
or Syria.'' in paragraph (e)(4) to read ``a country in Country Group
E:1.''; and
0
b. By revising the phrase ``Cuba, Iran, Iraq, Libya, North Korea, Sudan
and Syria.'' in paragraph (e)(6) to read ``a country in Country Group
E:1.''.
0
12. Supplement No. 1 to part 740 is amended:
0
a. By revising the entry for Iraq in Country Group D; and
0
b. By revising Country Group E to read as follows:
Supplement No. 1 to PART 740--Country Groups
* * * * *
Country Group D
----------------------------------------------------------------------------------------------------------------
[D:1] [D:3] [D:4]
Country National [D:2] Chemical & Missile
Security Nuclear Biological Technology
----------------------------------------------------------------------------------------------------------------
* * * * * * *
Iraq........................................................ X X X X
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Country Group E \1\
------------------------------------------------------------------------
[E:1]
Terrorist [E:2]
Country supporting Unilateral
countries \2\ embargo
------------------------------------------------------------------------
Cuba.................................. X X
Iran.................................. X
Korea, North.......................... X
Libya................................. X
Sudan................................. X
Syria................................. X
------------------------------------------------------------------------
\1\ In addition to the controls maintained by the Bureau of Industry and
Security pursuant to the EAR, note that the Department of the Treasury
administers:
(a) A comprehensive embargo against Cuba, Iran, and Sudan; and
(b) An embargo against certain persons, e.g., Specially Designated
Terrorists (SDT), Foreign Terrorist Organizations (FTO), Specially
Designated Global Terrorists (SDGT), and Specially Designated
Narcotics Traffickers (SDNT). Please see part 744 of the EAR for
controls maintained by the Bureau of Industry and Security on these
and other persons.
\2\ The President made inapplicable with respect to Iraq provisions of
law that apply to countries that have supported terrorism.
PART 742--[AMENDED]
0
13. The authority citation for 15 CFR part 742 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a;
Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; Sec 1503,
Pub. L. 108-11,117 Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978
Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61
FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR,
2001 Comp., p. 783; Presidential Determination 2003-23 of May 7,
2003, 68 FR 26459, May 16, 2003; Notice of November 9, 2001, 66 FR
56965, 3 CFR, 2001 Comp., p. 917; Notice of August 7, 2003, 68 FR
47833, 3 CFR, 2003 Comp., p. 328.
0
14. Section 742.1 is amended:
0
a. By revising the heading ``Exports and reexports involving Cuba,
Iran, and Iraq'' of paragraph (c) to read ``Exports and reexports
involving Cuba and Iran'';
0
b. By revising the parenthetical phrase ``(Cuba, Iran, and Iraq).'' in
paragraph (c) to read ``(Cuba and Iran).''; and
0
c. By revising paragraph (d) to read as follows:
Sec. 742.1 Introduction.
* * * * *
(d) Anti-terrorism Controls on Cuba, Iran, Iraq, Libya, North
Korea, Sudan and Syria. Commerce maintains anti-terrorism controls on
Cuba, Iran, Iraq, Libya, North Korea, Syria and Sudan under section
6(a) of the Export Administration Act. Items controlled under section
6(a) to Iran, Syria, Sudan, North Korea and Libya are described in
Sec. Sec. 742.8, 742.9, 742.10, 742.19, and 742.20, respectively, and
in Supplement No. 2 to part 742. Items controlled under section 6(a) to
Iraq are described in Sec. 746.3(a)(3). Commerce also maintains
controls under section 6(j) of the EAA to Cuba, Libya, Iran, North
Korea, Sudan and Syria. Items controlled to these countries under EAA
section 6(j) are also described in Supplement 2 to part 742. The
Secretaries of Commerce and State are required to notify appropriate
Committees of the Congress 30 days before issuing a license for an item
controlled under section 6(j) to Cuba, Libya, North Korea, Iran, Sudan
or Syria. As noted in paragraph (c) of this section, if you are
exporting or reexporting to Cuba, Iran, or Iraq you should review part
746 of the EAR, Embargoes and Other Special Controls.
0
15. Section 742.5 is amended by revising paragraph (a)(2) to read as
follows:
Sec. 742.5 Missile technology.
(a) * * *
(1) * * *
(2) The term ``missiles'' is defined as rocket systems (including
ballistic
[[Page 46076]]
missile systems, space launch vehicles, and sounding rockets) and
unmanned air vehicle systems (including cruise missile systems, target
drones, and reconnaissance drones) capable of delivering at least 500
kilograms (kg) payload to a range of a least 300 kilometers (km). See
Sec. 746.3 of the EAR for definition of a ``ballistic missile'' to be
exported or reexported to Iraq.
Sec. 742.12 [Amended]
0
16. Section 742.12 is amended:
0
a. By revising the phrase ``Cuba, Iran, Iraq, Libya, North Korea,
Sudan, and Syria.'' in paragraph (a)(2) to read ``Cuba, Iran, Libya,
North Korea, Sudan, and Syria.''; and
0
b. By removing the phrase ``for Iraq see Sec. 746.3;'' from paragraph
(b)(4)(ii).
0
17. Supplement No. 2 to part 742 is amended by revising paragraph
(b)(1) to read as follows:
Supplement No. 2 to Part 742--Anti-Terrorism Controls: Iran, Libya,
North Korea, Syria and Sudan Contract Sanctity Dates and Related
Policies
* * * * *
(b) * * *
(1) On December 28, 1993, the Secretary of State determined that
the export to Cuba, Libya, Iran, Iraq, North Korea, Sudan, or Syria of
items described in paragraphs (c)(1) through (c)(5) of this Supplement,
if destined to military, police, intelligence or other sensitive end-
users, are controlled under EAA section 6(j). Therefore, the 30-day
advance Congressional notification requirement applies to the export or
reexport of these items to sensitive end-users in any of these
countries.
Note to paragraph (b)(1): The items described in paragraphs
(c)(1) through (c)(5) are not controlled under EAA section 6(j) to
military, police, intelligence and other sensitive end-users in
Iraq. The 30-day prior Congressional notification requirement also
does not apply for the issuance of licenses for such transactions
involving Iraq, consistent with Presidential Determination 2003-23,
in which the President exercised his authority under the Emergency
Wartime Supplemental Appropriations Act, 2003, to make inapplicable
with respect to Iraq provisions of law that apply to countries that
have supported terrorism. As described in Sec. 746.3(a)(3), items
to all end-users in Iraq classified under ECCNs 0B999, 0D999, 1B999,
1C992, 1C995, 1C997, 1C999 and 6A992 continue to be controlled under
EAA section 6(a). Other licensing requirements continue to apply.
* * * * *
PART 744--[AMENDED]
0
18. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; Sec. 901-911, Pub. L. 106-
387; Sec. 221, Pub. L. 107-56; E.O. 12058, 43 FR 20947, 3 CFR, 1978
Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60
FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp.,
p.208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O.
13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of November 9,
2001, 66 FR 56965, 3 CFR, 2001 Comp., p. 917; Notice of August 7,
2003, 68 FR 47833, 3 CFR, 2003 Comp., p. 328.
0
19. Part 744 is amended by adding a new section 744.18 to read as
follows:
Sec. 744.18 Restrictions on exports, reexports, and transfers to
persons designated in or pursuant to Executive Order 13315.
Consistent with Executive Order (E.O.) 13315 of August 28, 2003
(``Blocking Property of the Former Iraqi Regime, Its Senior Officials
and Their Family Members, and Taking Certain Other Actions''), BIS
maintains restrictions on exports, reexports, and transfers to persons
designated in or pursuant to E.O. 13315. These persons include
individuals and entities listed in the Annex to Executive Order 13315,
as well as persons subsequently designated pursuant to criteria set
forth in the order. OFAC includes the names of persons designated
pursuant to E.O. 13315 in Appendix A to 31 CFR Chapter V, which lists
persons subject to various sanctions programs administered by OFAC. All
persons designated in or pursuant to E.O. 13315 are identified in
Appendix A by the bracketed initials [IRAQ2].
(a) License Requirements.
(1) A license requirement applies to the export, reexport, or
transfer of any item subject to the EAR to--
(i) Persons listed in the Annex to E.O. 13315 of August 28, 2003;
or
(ii) Persons determined to be subject to E.O. 13315.
(2) To avoid duplication, U.S. persons are not required to seek
separate BIS authorization for an export, reexport, or transfer to a
person identified in paragraph (a) of this section of any item subject
to both the EAR and regulations maintained by OFAC. Therefore, if OFAC
authorizes an export from the United States or an export, reexport, or
transfer by a U.S. person to a person identified in paragraph (a) of
this section, no separate authorization from BIS is necessary.
(3) U.S. persons must seek authorization from BIS for the export,
reexport, or transfer to a person identified in paragraph (a) of this
section of any item subject to the EAR but not subject to regulations
maintained by OFAC.
(4) Non-U.S. persons must seek authorization from BIS for the
export from abroad, reexport, or transfer to a person identified in
paragraph (a) of this section of any item subject to the EAR.
(5) Any export, reexport, or transfer to a person identified in
paragraph (a) of this section by a U.S. person of any item subject both
to the EAR and regulations maintained by OFAC and not authorized by
OFAC is a violation of the EAR.
(6) Any export, reexport, or transfer by a U.S. person to a person
identified in paragraph (a) of this section of any item subject to the
EAR that is not subject to regulations maintained by OFAC and not
authorized by BIS is a violation of the EAR. Any export from abroad,
reexport, or transfer by a non-U.S. person to a person identified in
paragraph (a) of this section of any item subject to the EAR and not
authorized by BIS is a violation of the EAR.
(7) These licensing requirements supplement any other requirements
set forth elsewhere in the EAR.
(b) Exceptions. No License Exceptions or other BIS authorizations
are available for export, reexport, or transfer to a person identified
in paragraph (a) of this section of any item subject to the EAR.
(c) Licensing policy. Applications for licenses for the export,
reexport, or transfer to a person identified in paragraph (a) of this
section of any item subject to the EAR will generally be denied. You
should consult with OFAC concerning transactions subject to OFAC
licensing requirements.
(d) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
PART 746--[AMENDED]
0
20. The authority citation for 15 CFR part 746 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 287c; Sec 1503, Pub. L. 108-11,117 Stat. 559; 22 U.S.C.
6004; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O.
12854, 58 FR 36587, 3 CFR 1993 Comp., p. 614; E.O. 12918, 59 FR
28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p.
783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459,
May 16, 2003; Notice of August 7, 2003, 68 FR 47833, 3 CFR, 2003
Comp., p. 328.
0
21. Section 746.1 is amended:
0
a. By revising the phrase ``Cuba, Iran and Iraq'' in paragraph (a) to
read ``Cuba and Iran';
0
b. By revising paragraphs (a)(2) and (b) to read as follows:
[[Page 46077]]
Sec. 746.1 Introduction.
* * * * *
(a) * * *
(1) * * *
(2) Iran. BIS maintains license requirements and other restrictions
on exports and reexports to Iran. A comprehensive embargo on
transactions involving this country is administered by the Department
of The Treasury's Office of Foreign Assets Control (OFAC).
(b) Sanctions on selected categories of items to specific
destinations.
BIS controls the export and reexport of selected categories of
items to Iraq and Rwanda consistent with United Nations Security
Council Resolutions.
* * * * *
0
22. Section 746.3 is revised to read as follows:
Sec. 746.3 Iraq.
Pursuant to United Nations Security Council (UNSC) Resolutions 1483
and 1546 and other relevant resolutions, the United Nations maintains
an embargo on the sale or supply to Iraq of arms and related materiel
and their means of production, except items required by the Interim
Government of Iraq or the Multinational Force in Iraq to serve the
purposes of Resolution 1546. UNSC Resolutions 707 and 687 require that
Iraq eliminate its nuclear weapons program and restrict its nuclear
activities to the use of isotopes for medical, industrial or
agricultural purposes. Such resolutions further mandate that Iraq
eliminate its chemical and biological weapons programs as well as its
ballistic missile program. In support of the applicable UNSC
resolutions, certain Iraq specific license requirements and licensing
policies are detailed in this section. In addition, this section
details restrictions on transfers of items subject to the EAR within
Iraq. Exporters should be aware that other provisions of the EAR,
including parts 742 and 744, will continue to apply with respect to
exports and reexports to Iraq and transfers within Iraq.
(a) License requirements. (1) A license is required for the export
or reexport to Iraq or transfer within Iraq of any item controlled on
the Commerce Control List for NS, MT, NP, CW, CB, RS, CC, EI, SI, or XP
reasons. See part 742 of the EAR.
(2) A license is required for the export or reexport to Iraq or
transfer within Iraq of any item controlled on the Commerce Control
List for UN reasons.
(3) A license is required for the export or reexport to Iraq or
transfer within Iraq of items on the Commerce Control List controlled
for AT reasons under the following ECCNs: 0B999, 0D999, 1B999,1C992,
1C995, 1C997, 1C999 and 6A992.
(4) A license is required for the export or reexport to Iraq or
transfer within Iraq of any item subject to the EAR if, at the time of
the export, reexport or transfer, you know, have reason to know, or are
informed by BIS that the item will be, or is intended to be, used for a
``military end-use'' or by a ``military end-user'', as defined in this
section. This license requirement does not apply to exports, reexports
or transfers of items for the official use by personnel and agencies of
the U.S. Government or exports, reexports or transfers to the Interim
Government of Iraq or the Multinational Force in Iraq. See Sec.
740.11(b)(3) of the EAR for the definition of ``agency of the U.S.
Government.'' BIS may inform an exporter, reexporter, or other person,
either individually by specific notice or through amendment to the EAR,
that a license is required for export, reexport or transfer of items
subject to the EAR to specified end-users, because BIS has determined
that there is an unacceptable risk of diversion to the uses or users
described in this paragraph. Specific notice is to be given only by, or
at the direction of, the Deputy Assistant Secretary for Export
Administration. When such notice is provided orally, it will be
followed by a written notice within two working days signed by the
Deputy Assistant Secretary for Export Administration. The absence of
any such notification does not excuse the exporter, reexporter or other
person from compliance with the license requirements of this paragraph.
(i) Military end-use. In this section, the phrase ``military end-
use'' means incorporation into a military item described on the U.S.
Munitions List (USML) (22 CFR part 121, International Traffic in Arms
Regulations) or the Wassenaar Arrangement Munitions List (WAML) (as set
out on the Wassenaar Arrangement website at http://www.wassenaar.org);
or use, development, or deployment of military items described on the
USML or the WAML.
(ii) Military end-user. In this section, the term ``military end-
user'' means any ``person'' whose actions or functions are intended to
support ``military end-uses'' as defined in paragraph (a)(4)(i) of this
section and who is not recognized as a legitimate military organization
by the U.S. Government.
(5) Definitions. For purposes of exports or reexports to Iraq or
transfers within Iraq, ``ballistic missile'' is defined as any missile
capable of a range greater than 150 kilometers.
(b) Licensing policy. (1) License applications for the export or
reexport to Iraq or transfer within Iraq of items listed in paragraph
(a)(1), (a)(2), or (a)(3) of this section for Iraqi civil nuclear or
military nuclear activity, except for use of isotopes for medical,
industrial or agricultural purposes, will be subject to a policy of
denial.
(2) License applications for the export or reexport to Iraq or
transfer within Iraq of machine tools controlled for national security
(NS) or nuclear non-proliferation (NP) reasons, as well as for any
items controlled for crime control (CC) or united nations (UN) reasons
(including items controlled under ECCN 0A986) or ECCNs that end in the
number ``018'', that would make a material contribution to the
production, research, design, development, support, maintenance or
manufacture of Iraqi weapons of mass destruction, ballistic missiles or
arms and related materiel will be subject to a general policy of
denial.
(3) License applications for the export or reexport to Iraq or
transfer within Iraq of items listed in paragraph (a)(3) of this
section will be reviewed on a case-by-case basis to determine if they
would contribute to the building of Iraqi civil infrastructure.
Applications determined not to contribute to the building of Iraqi
civil infrastructure will be subject to a general policy of denial.
(4) License applications for the export or reexport to Iraq or
transfer within Iraq of items listed in paragraph (a)(4) of this
section will be subject to a policy of denial.
(c) License exceptions. You may export or reexport without a
license if your transaction meets all the requirements of any of the
following License Exceptions: CIV, CTP, TMP, RPL, GOV, GFT, TSU, BAG,
AVS, ENC or KMI. For specific requirements of each of these License
Exceptions, refer to part 740 of the EAR.
(d) Related State Department controls. The Department of State,
Directorate of Defense Trade Controls, maintains controls on arms and
military equipment to Iraq under the International Traffic in Arms
Regulations (22 CFR parts 120 through 130).
(e) Transition for licenses issued by the Department of the
Treasury's Office of Foreign Assets Control. Prior to July 30, 2004,
the Department of the Treasury's Office of Foreign Assets Control
(OFAC) exercised primary licensing jurisdiction for transactions with
Iraq, as provided in 31 CFR part 575. This section establishes a
validity period for licenses issued by OFAC for exports or reexports to
Iraq.
[[Page 46078]]
(1) Validity period. Licenses issued by OFAC for the export or
reexport of items that require a license to Iraq under the Export
Administration Regulations (EAR) shall continue to be valid under the
EAR. For those licenses with specified expiration dates, such dates
will continue to apply. Licenses without specified expiration dates
will be valid through July 30, 2005. The recordkeeping requirements
applicable to exports and reexports of items pursuant to licenses
issued by OFAC are described in paragraph (e)(3) of this section.
Note to paragraph (e)(1). Persons that have been authorized by
OFAC to export or reexport items that are subject to the export
control jurisdiction of other agencies must consult with OFAC and
the other relevant agencies with regard to the expiration date of
the authorization granted by OFAC.
(2) Reexports or transfers. Items subject to a license requirement
under the EAR for export or reexport to Iraq as of July 30, 2004, that
were previously exported or reexported to Iraq under a specific license
granted by OFAC:
(i) May not be transferred within Iraq to a new end-user without a
license from BIS,
(ii) May be reexported to the United States without a license,
(iii) May be reexported to third countries subject to the license
requirements for the destination, end-use or end-user set forth
elsewhere in the EAR.
(3) Recordkeeping requirement. Persons in receipt of a specific
license granted by OFAC described in paragraph (e)(1) of this section
must maintain a record of those items exported or reexported to Iraq
pursuant to such specific license and record when the items are
consumed or destroyed in the normal course of their use in Iraq,
reexported to a third country not requiring further authorization from
BIS, or returned to the United States. This requirement applies only to
items subject to a license requirement under the EAR for export to Iraq
as of July 30, 2004. These records must be maintained in accordance
with recordkeeping requirements set forth in part 762 of the EAR and
must include the following information:
(i) Date of export or reexport and related details (including means
of transport);
(ii) Description of items (including ECCN) and value of items in
U.S. Dollars;
(iii) Description of proposed end-use and locations in Iraq where
items are intended to be used;
(iv) Parties other than specific OFAC licensee who may be given
temporary access to the items; and
(v) Date of consumption or destruction, if the items are consumed
or destroyed in the normal course of their use in Iraq, or the date of
reexport to a third country not requiring further authorization from
BIS, or return to the United States.
(f) License Requirements for certain transfers within Iraq of items
subject to the EAR. (1) Licensed items. A license is required for the
transfer within Iraq of any item subject to the EAR exported or
reexported pursuant to a specific license issued by the Department of
the Treasury or a Department of Commerce specific license or License
Exception.
(2) Other items. (i) A license is required for the transfer within
Iraq of any item subject to the EAR, if, at the time of the transfer,
you know, have reason to know, or are informed by BIS that the item
will be used in the design, development, production or use of weapons
of mass destruction or the means of their delivery, as set forth in
part 744 of the EAR.
(ii) A license is required for the transfer within Iraq to
designated terrorists or terrorist organizations, as set forth in
Sec. Sec. 744.12, 744.13, or 744.14 of the EAR.
PART 747--[NEW]
0
23. New part 747 is added to read as follows:
PART 747--SPECIAL IRAQ RECONSTRUCTION LICENSE
Sec.
747.1 Scope.
747.2 Eligibility requirements.
747.3 Eligible items.
747.4 Steps you must follow to apply for a SIRL.
747.5 SIRL application review process.
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
Sec. 1503, Pub.L. 108-11,117 Stat. 559; E.O. 12918, 59 FR 28205, 3
CFR, 1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p. 783;
Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May
16, 2003; Notice of August 7, 2003, 68 FR 47833, 3 CFR, 2003 Comp.,
p. 328.
Sec. 747.1 Scope.
A Special Iraq Reconstruction License (SIRL) authorizes exports and
reexports to Iraq and transfers within Iraq of items in furtherance of
civil reconstruction and other related projects.
Sec. 747.2 Eligibility requirements.
(a) A SIRL authorizes exports and reexports to Iraq and transfers
within Iraq of items in furtherance of civil reconstruction and other
projects funded by:
(1) The United States Government;
(2) The United Nations, the World Bank, and the International
Monetary Fund, their affiliated entities (i.e., International Bank for
Reconstruction and Development, International Finance Corporation, and
United Nations Development Programme); and
(3) Any other entities that the U.S. Government may designate.
(b) To be eligible for a SIRL, exports, reexports or transfers must
be made pursuant to and within the scope of contractual or similar
arrangements in furtherance of civil reconstruction or other projects
in Iraq funded by any of the entities described above.
Sec. 747.3 Eligible items.
All items subject to the EAR, other than items controlled for
missile technology (MT), nuclear nonproliferation (NP) or chemical and
biological weapons (CB) reasons, are eligible for export, reexport or
transfer under a SIRL.
Sec. 747.4 Steps you must follow to apply for a SIRL.
(a) Step One: Prepare your documentation.
(1) Form BIS-748P, Multipurpose Application, and Form BIS-748P-A,
Item Appendix. You must complete the Multipurpose Application Form
(BIS-748P) to apply for a SIRL. Applications must specifically
describe, on Form BIS-748P-A, Item Appendix, all items subject to the
EAR to be exported or reexported to Iraq, or transferred within Iraq,
for which BIS approval is sought. Export control classification numbers
(ECCNs) must be identified for all such items. Applicants should
provide BIS commodity classifications, where available, as this will
assist BIS to rule upon the application quickly.
(2) Form BIS-748P-B, End-User Appendix. All end-users must be
identified on Form BIS-748P-B, End-User Appendix.
(b) Step Two: Narrative statement to support application--In
support of an application for a SIRL, exporters must submit with the
application a narrative statement that includes the following
information:
(1) Identity of all parties to the proposed transaction;
(2) Detailed description of the project, funding entity, the
contract or work order which formed the basis of the transaction, and
any identification number or project code for that contract or work
order;
(3) Explanation of how the project will contribute to the
reconstruction of
[[Page 46079]]
Iraq and any potential security issues associated with the items to be
exported, reexported or transferred;
(4) Written statement from one or more funding agencies referred to
in Sec. 747.2 addressing whether the transaction is likely to pose
security issues;
(5) Certification that items will not be used in any of the
prohibited proliferation activities described in part 744 of the EAR;
(6) For items that will remain in the control of the exporter, a
commitment to return all items to the United States when the authorized
project or activity is complete, excluding those items that are
consumed in Iraq, absent specific permission from BIS; and
(7) Certification that parties to the transaction will obtain a
license from BIS prior to transferring within Iraq or reexporting items
to end-users not authorized under the SIRL, unless they would not
require a BIS license to the new country of destination. (Please see
the guidance in Sec. 747.5(d) regarding the transfer of items to
persons within Iraq not included on the End-User Appendix.)
Sec. 747.5 SIRL application review process.
(a) Application processing time frames. Upon receiving a complete
application with all requisite supporting documentation, BIS may review
the application for up to ten days before referring the application to
the other appropriate agencies. Agencies have 30 days from the date of
referral to process the application. The U.S. Government will review
the application as expeditiously as possible.
(b) Review policy. (1) BIS will review SIRL applications on a case-
by-case basis. To approve a SIRL, BIS must be satisfied that the
parties to the license will adhere to the conditions of the license and
the EAR, and that approval of the application will not be detrimental
to U.S. national security, nonproliferation, or foreign policy
interests. In reviewing and approving a specific SIRL application, BIS
may retain the right to limit the items that are eligible or to
prohibit the export, reexport, or transfer of items under the
reconstruction license to specific firms or individuals.
(2) BIS will thoroughly analyze all parties, items and activities
associated with the applicant's proposed transaction(s). If BIS cannot
verify that all parties, items and activities are appropriate, or
establish the reliability of the proposed parties to the application,
it may deny the application, or modify it by eliminating certain
consignees, items, activities or other elements.
(3) The licensing decision will focus on the following factors:
(i) The proposed end-use(s);
(ii) If the proposed transaction will contribute to the
reconstruction of Iraq;
(iii) If the proposed transaction could contribute to the design,
development, production, stockpiling, or use of nuclear or chemical or
biological weapons, or missiles of greater than 150 kilometer range and
the types of assurances available against these activities;
(iv) The potential impact of the proposed transaction on the
security situation in Iraq; and
(v) The reliability of all parties to the proposed transaction.
(4) If the U.S. Government determines that the proposed transaction
does not satisfy all the criteria of part 747, BIS will inform the
applicant that the agency will review the application under standard
license procedures for individual items rather than as a SIRL. The
applicant may elect to have the application Returned Without Action.
Applicants are not required to use the SIRL procedure and may seek
authorization under standard license procedures.
(c) Validity period. SIRLs will be valid until the completion or
discontinuation of the associated project detailed in the application
or until otherwise determined by BIS. Applicants are required to submit
a report to BIS verifying completion of the project or indicating that
the project has been discontinued. These reports should be submitted to
the following address: U.S. Department of Commerce, Office of Exporter
Services, ATTN: Reports, 14th Pennsylvania Ave., NW., Washington, DC,
20230. The report should include the following information:
(1) The SIRL reference number;
(2) The date the project is completed or discontinued;
(3) Verification that items exported under the authority of the
SIRL were, as applicable, consumed during use, returned to the United
States, reexported to a third country, or transferred to a party within
Iraq for whom the applicant has received a license from BIS; and
(4) The reference numbers of the licenses received for the reexport
or transfer within Iraq, if required.
(d) Post-shipment information. For any items exported or reexported
pursuant to a SIRL that are not consumed in Iraq, the applicant must
either:
(1) Return the items to the United States,
(2) Reexport the items to a third country, and obtain prior BIS
approval where required; or
(3) Seek a license from BIS prior to transferring the items within
Iraq to an end-user not identified on the End-User Appendix.
(e) Changes to a SIRL. Changes to a SIRL require BIS prior approval
if they involve:
(1) Change to consignee name or address;
(2) Addition of new consignee;
(3) Addition of new item;
(4) Changes to end user information or additional end users added;
and/or
(5) Change to license holder ownership or control. Applicants must
submit a written request for a change to the Office of Exporter
Services. BIS will respond to these requests in written form. Changes
involving the following must be reported to BIS within 30 days of their
occurrence but do not require prior BIS approval:
(i) License holder address, contact information, or license value;
or
(ii) Removing consignee(s), items or end users from the SIRL.
(f) Administrative actions. If BIS believes any party to a SIRL is
not complying with all conditions of the SIRL, BIS may take measures
including revoking or suspending parts of the SIRL, or may restrict
what items may be shipped under the SIRL. Whenever necessary to protect
the national interest of the United States, BIS may take any licensing
action it deems appropriate, without regard to contracts or agreements
entered into before such administrative action.
PART 750--[AMENDED]
0
24. The authority citation for 15 CFR part 750 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
Sec. 1503, Pub. L. 108-11,117 Stat. 559; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR
26459, May 16, 2003; Notice of August 7, 2003, 68 FR 47833, 3 CFR,
2003 Comp., p. 328.
0
25. Section 750.4 is amended by revising paragraph (b)(6)(i) to read as
follows:
Sec. 750.4 Procedures for processing license applications.
* * * * *
(b) * * *
(6) * * *
(i) Designated countries. The following countries have been
designated by the Secretary of State as terrorist-supporting countries:
Cuba,
[[Page 46080]]
Iran, Iraq, Libya, North Korea, Sudan, and Syria. However, the
congressional notification requirement does not apply to Iraq in view
of Presidential Determination 2003-23, in which the President exercised
his authority under the Emergency Wartime Supplemental Appropriations
Act, 2003, to make inapplicable with respect to Iraq section 620A of
the Foreign Assistance Act and any other provision of law that applies
to countries that have supported terrorism.
* * * * *
PART 758--[AMENDED]
0
26. The authority citation for 15 CFR part 758 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
7, 2003, 68 FR 47833, 3 CFR, 2003 Comp., p. 328.
0
27. Section 758.1 is amended by revising the phrase ``Cuba, Iran, Iraq,
Libya, North Korea, Sudan, or Syria,'' of paragraph (b)(1) to read ``A
country in Country Group E:1 of Supplement No. 1 to part 740 of the
EAR''.
PART 762--[AMENDED]
0
28. The authority citation for part 762 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
7, 2003, 68 FR 47833, 3 CFR, 2003 Comp., p. 328.
0
29. Section 762.2 is amended by redesignating paragraphs (b)(10)
through (b)(43) as (b)(12) through (b)(45); and inserting new
paragraphs (b)(10) and (b)(11) to read as follows:
Sec. 762.2 Records to be retained.
* * * * *
(b) * * *
(10) Sec. 746.3 Iraq.
(11) Part 747, Special Iraq Reconstruction License.
* * * * *
PART 772--[AMENDED]
0
30. The authority citation for part 772 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
7, 2003, 68 FR 47833, 3 CFR, 2003 Comp., p. 328.
0
31. Section 772.1 is amended by revising the definition of ``Missiles''
to read as follows:
Sec. 772.1 Definitions of terms as used in the Export Administration
Regulations (EAR).
* * * * *
``Missiles''. (All)--Rocket systems (including ballistic missile
systems, space launch vehicles, and sounding rockets) and unmanned air
vehicle systems (including cruise missile systems, target drones, and
reconnaissance drones) ``capable of'' delivering at least 500 kilograms
payload to a range of at least 300 kilometers. See Sec. 746.3 for
definition of a ``ballistic missile'' to be exported or reexported to
Iraq or transferred within Iraq.
PART 774--[AMENDED]
0
32. The authority citation for part 774 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(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; 30 U.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; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec.
221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of
August 7, 2003, 68 FR 47833, 3 CFR, 2003 Comp., p. 328.
0
33. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0A018 is amended by
revising the License Requirements section to read as follows:
0A018 Items on the Wassenaar Munitions List
License Requirements
Reason for Control: NS, AT, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
34. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0A918 is amended by
revising the License Requirements section to read as follows:
0A918 Miscellaneous Military Equipment not on the Wassenaar Munitions
List
License Requirements
Reason for Control: RS, AT, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
RS applies to entire entry............ RS Column 2.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
35. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0A984 is amended by
revising the License Requirements section to read as follows:
0A984 Shotguns, barrel length 18 inches (45.72 cm) inches or over;
buckshot shotgun shells; except equipment used exclusively to treat or
tranquilize animals, and except arms designed solely for signal, flare,
or saluting use; and parts, n.e.s.
License Requirements
Reason for Control: CC, FC, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
FC applies to entire entry............ FC Column 1.
CC applies to shotguns with a barrel.. CC Column 1.
length greater than or equal to 18 ................................
in.(45.72 cm), but less than 24
in.(60.96 cm) or buckshot shotgun
shells controlled by this entry,
regardless of end-user.
CC applies to shotguns with a barrel CC Column 2.
length greater than or equal to 24
in.(60.96 cm), regardless of end-user.
CC applies to shotguns with a barrel CC Column 3.
length greater than or equal to 24
in.(60.96 cm) if for sale or resale
to police or law enforcement.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
36. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0A985 is amended by
revising the License Requirements section to read as follows:
[[Page 46081]]
0A985 Discharge type arms (for example, stun guns, shock batons,
electric cattle prods, immobilization guns and projectiles) except
equipment used exclusively to treat or tranquilize animals, and except
arms designed solely for signal, flare, or saluting use; and parts,
n.e.s.
License Requirements
Reason for Control: CC, UN.
Control(s): CC applies to entire entry. A license is required for
ALL destinations, except Canada, regardless of end-use. Accordingly, a
column specific to this control does not appear on the Commerce Country
Chart. (See part 742 of the EAR for additional information.)
UN applies to entire entry............ Iraq and Rwanda
------------------------------------------------------------------------
* * * * *
0
37. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0A986 is amended by
revising the License Requirements section to read as follows:
0A986 Shotgun shells, except buckshot shotgun shells, and parts
License Requirements
Reason for Control: AT, FC, UN.
Control(s)--Country Chart: AT applies to entire entry. A license is
required for items controlled by this entry to North Korea for anti-
terrorism reasons. The Commerce Country Chart is not designed to
determine AT licensing requirements for this entry. See Sec. 742.19 of
the EAR for additional information.
FC applies to entire entry............ FC Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
38. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0A987 is amended by
revising the License Requirements section to read as follows:
0A987 Optical sighting devices for firearms (including shotguns
controlled by 0A984); and parts, n.e.s.
License Requirements
Reason for Control: FC, CC, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
FC applies to optical sights for FC Column 1.
firearms, including shotguns
described in ECCN 0A984, and related
parts.
CC applies to entire entry............ CC Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
39. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0A988 is amended by
revising the License Requirements section to read as follows:
0A988 Conventional military steel helmets as described by 0A018.d.1.;
and machetes
License Requirements
Reason for Control: UN.
Control(s): UN applies to entire entry. A license is required for
conventional military steel helmets as described by 0A018.d.1 to Iraq
and Rwanda. A license is required for machetes to Iraq and Rwanda. The
Commerce Country Chart is not designed to determine licensing
requirements for this entry. See part 746 of the EAR for additional
information.
Note: Exports from the U.S. and transhipments to Iran must be
licensed by the Department of Treasury, Office of Foreign Assets
Control. (See Sec. 746.7 of the EAR for additional information on
this requirement.)
* * * * *
0
40. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0B986 is amended by
revising the License Requirements section to read as follows:
0B986 Equipment specially designed for manufacturing shotgun shells;
and ammunition hand-loading equipment for both cartridges and shotgun
shells
License Requirements
Reason for Control: AT, UN.
Control(s): AT applies to entire entry. A license is required for
items controlled by this entry to North Korea for anti-terrorism
reasons. The Commerce Country Chart is not designed to determine AT
licensing requirements for this entry. See Sec. 742.19 of the EAR for
additional information.
UN applies to entire entry. A license is required for items
controlled by this entry to Iraq and Rwanda. The Commerce Country Chart
is not designed to determine licensing requirements for this entry. See
part 746 of the EAR for additional information.
* * * * *
0
41. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0B999 is amended by
revising the License Requirements section to read as follows:
0B999 Specific processing equipment, as follows (see List of Items
Controlled)
License Requirements
Reason for Control: AT.
Control(s)--Country Chart: AT applies to entire entry. A license is
required for items controlled by this entry to Iraq and North Korea for
anti-terrorism reasons. The Commerce Country Chart is not designed to
determine AT licensing requirements for this entry. See Sec. 742.19
and Sec. 746.3 of the EAR for additional information.
* * * * *
0
42. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0D999 is amended by
revising the License Requirements section to read as follows:
0D999 Specific software, as follows (see List of Items Controlled)
License Requirements
Reason for Control: AT.
Control(s)--Country Chart: AT applies to entire entry. A license is
required for items controlled by this entry to Iraq and North Korea for
anti-terrorism reasons. The Commerce Country Chart is not designed to
determine AT licensing requirements for this entry. See Sec. 742.19
and Sec. 746.3 of the EAR for additional information.
* * * * *
0
43. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0E018 is amended by
revising the License Requirements section to read as follows:
[[Page 46082]]
0E018 ``Technology'' for the ``development'', ``production'', or
``use'' of items controlled by 0A018.a through 0A018.c
License Requirements
Reason for Control: NS, UN, AT.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
UN applies to entire entry............ Iraq and Rwanda.
AT applies to entire entry............ AT Column 1.
------------------------------------------------------------------------
* * * * *
0
44. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0E918 is amended by
revising the License Requirements section to read as follows:
0E918 ``Technology'' for the ``development'', ``production'', or
``use'' of bayonets
License Requirements
Reason for Control: RS, UN, AT.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
RS applies to entire entry............ RS Column 2.
UN applies to entire entry............ Iraq and Rwanda.
AT applies to entire entry............ AT Column 1.
------------------------------------------------------------------------
* * * * *
0
45. In Supplement No. 1 part 774 (the Commerce Control List), Category
0--Nuclear Materials, Facilities, and Equipment [and Miscellaneous
Items], Export Control Classification Number (ECCN) 0E984 is amended by
revising the License Requirements section to read as follows:
0E984 Technology'' for the ``development'' or ``production'' of
shotguns controlled by 0A984 and buckshot shotgun shells
License Requirements
Reason for Control: CC, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
CC applies to ``technology'' for CC Column 1.
shotguns with a barrel length over 18
in. (45.72 cm) but less than 24 in.
(60.96 cm) and shotgun shells,
regardless of end-user.
CC applies to ``technology'' for CC Column 2.
shotguns with a barrel length over 24
in. (60.96 cm), regardless of end-
user.
CC applies to ``technology'' for CC Column 3.
shotguns with a barrel length over 24
in. (60.96 cm) if for sale or resale
to police or law enforcement.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
46. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1A005 is amended by
revising the License Requirements section to read as follows:
1A005 Body armor, and specially designed components therefor, not
manufactured to military standards or specifications, nor to their
equivalents in performance
License Requirements
Reason for Control: NS, UN, AT
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 2.
UN applies to entire entry............ Iraq and Rwanda.
AT applies to entire entry............ AT Column 1.
------------------------------------------------------------------------
* * * * *
0
47. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1B018 is amended by
revising the License Requirements section to read as follows:
1B018 Equipment on the International Munitions List
License Requirements
Reason for Control: NS, MT, RS, AT, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
MT applies to equipment for the MT Column 1.
``production'' of rocket propellants.
RS applies to 1B018.a................. RS Column 2.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
0
48. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1B999 is amended by
revising the License Requirements section to read as follows:
1B999 Specific processing equipment, n.e.s., as follows (see List of
Items Controlled)
License Requirements
Reason for Control: AT.
Control(s)--Country Chart AT applies to entire entry. A license is
required for items controlled by this entry to Iraq and North Korea for
anti-terrorism reasons. The Commerce Country Chart is not designed to
determine AT licensing requirements for this entry. See Sec. 742.19
and Sec. 746.3 of the EAR for additional information.
* * * * *
0
49. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1C018 is amended by
revising the License Requirements section to read as follows:
1C018 Commercial charges and devices containing energetic materials on
the International Munitions List and certain chemicals as follows (see
List of Items Controlled)
License Requirements
Reason for Control: NS, MT, AT, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry except as NS Column 1.
noted in 1C018.m.
MT applies to 1C018.m except as noted MT Column 1.
therein.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
[[Page 46083]]
0
50. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1C350 is amended by
revising the License Requirements section to read as follows:
1C350 Chemicals that may be used as precursors for toxic chemical
agents
License Requirements:
Reason for Control: CB, CW, AT.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
CB applies to entire entry............ CB Column 2.
------------------------------------------------------------------------
CW applies to 1C350.b and .c. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
CW reasons. A license is required, for CW reasons, to export or
reexport Schedule 2 chemicals and mixtures identified in 1C350.b to
States not Party to the CWC (destinations not listed in Supplement No.
2 to part 745 of the EAR). A license is required, for CW reasons, to
export Schedule 3 chemicals and mixtures identified in 1C350.c to
States not Party to the CWC, unless an End-Use Certificate issued by
the government of the importing country has been obtained by the
exporter prior to export. A license is required, for CW reasons, to
reexport Schedule 3 chemicals and mixtures identified in 1C350.c from a
State not Party to the CWC to any other State not Party to the CWC.
(See Sec. 742.18 of the EAR for license requirements and policies for
toxic and precursor chemicals controlled for CW reasons. See Sec.
745.2 of the EAR for End-Use Certificate requirements that apply to
exports of Schedule 3 chemicals to countries not listed in Supplement
No. 2 to part 745 of the EAR.)
AT applies to entire entry. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
AT reasons in 1C350. A license is required, for AT reasons, to export
or reexport items controlled by 1C350 to a country in Country Group E:1
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR
for additional information on the AT controls that apply to Iran,
Libya, North Korea, Sudan, and Syria. See part 746 of the EAR for
additional information on the comprehensive trade sanctions that apply
to Cuba and Iran. See Supplement No. 1 to part 736 of the EAR for
export controls on Syria.)
License Requirement Notes:
1. SAMPLE SHIPMENTS: Subject to the following requirements and
restrictions, a license is not required for sample shipments when the
cumulative total of these shipments does not exceed a 55-gallon
container or 200 kg of a single chemical to any one consignee during a
calendar year. A consignee that receives a sample shipment under this
exclusion may not resell, transfer, or reexport the sample shipment,
but may use the sample shipment for any other legal purpose unrelated
to chemical weapons.
a. Chemicals Not Eligible:
A. [RESERVED]
B. CWC Schedule 2 chemicals (States not Party to the CWC). No CWC
Schedule 2 chemical or mixture identified in 1C350.b is eligible for
sample shipment to States not Party to the CWC (i.e., destinations not
listed in Supplement No. 2 to part 745 of the EAR) without a license.
b. Countries Not Eligible: Countries in Country Group E:1 of
Supplement No. 1 to part 740 of the EAR are not eligible to receive
sample shipments of any chemicals controlled by this ECCN without a
license.
c. Sample shipments that require an End-Use Certificate for CW
reasons: No CWC Schedule 3 chemical or mixture identified in 1C350.c is
eligible for sample shipment to States not Party to the CWC
(destinations not listed in Supplement No. 2 to part 745 of the EAR)
without a license, unless an End-Use Certificate issued by the
government of the importing country is obtained by the exporter prior
to export (see Sec. 745.2 of the EAR for End-Use Certificate
requirements).
d. Sample shipments that require a license for reasons set forth
elsewhere in the EAR: Sample shipments, as described in this Note 1,
may require a license for reasons set forth elsewhere in the EAR. See,
in particular, the end-use/end-user restrictions in part 744 of the
EAR, and the restrictions that apply to embargoed countries in part 746
of the EAR.
e. Quarterly report requirement. The exporter is required to submit
a quarterly written report for shipments of samples made under this
Note 1. The report must be on company letterhead stationery (titled
``Report of Sample Shipments of Chemical Precursors'' at the top of the
first page) and identify the chemical(s), Chemical Abstract Service
Registry (C.A.S.) number(s), quantity(ies), the ultimate consignee's
name and address, and the date exported. The report must be sent to the
U.S. Department of Commerce, Bureau of Industry and Security, P.O. Box
273, Washington, DC 20044, Attn: ``Report of Sample Shipments of
Chemical Precursors''.
2. MIXTURES:
a. Mixtures that contain precursor chemicals identified in ECCN
1C350, in concentrations that are below the levels indicated in 1C350.a
through .d, are controlled by ECCN 1C395 or 1C995 and are subject to
the licensing requirements specified in those ECCNs.
b. A license is not required for mixtures controlled under this
ECCN when the controlled chemical in the mixture is a normal ingredient
in consumer goods packaged for retail sale for personal use. Such
consumer goods are classified as EAR99.
Note to Mixtures: Calculation of concentrations of AG-controlled
chemicals:
a. Exclusion. No chemical may be added to the mixture (solution)
for the sole purpose of circumventing the Export Administration
Regulations;
b. Percent Weight Calculation. When calculating the percentage, by
weight, of components in a chemical mixture, include all components of
the mixture, including those that act as solvents.
3. COMPOUNDS. Compounds created with any chemicals identified in
this ECCN 1C350 may be shipped NLR (No License Required), without
obtaining an End-Use Certificate, unless those compounds are also
identified in this entry or require a license for reasons set forth
elsewhere in the EAR.
4. TESTING KITS: Certain medical, analytical, diagnostic, and food
testing kits containing small quantities of chemicals identified in
this ECCN 1C350 are excluded from the scope of this ECCN and are
controlled under ECCN 1C395 or 1C995. (Note that replacement reagents
for such kits are controlled by this ECCN 1C350 if the reagents contain
one or more of the precursor chemicals identified in 1C350 in
concentrations equal to or greater than the control levels for mixtures
indicated in 1C350.)
Technical Notes: 1. For purposes of this entry, a ``mixture'' is
defined as a solid, liquid or gaseous product made up of two or more
components that do not react together under normal storage
conditions.
2. The scope of this control applicable to Hydrogen Fluoride (see
1C350.d.7 in the List of Items Controlled) includes its liquid,
gaseous, and aqueous phases, and hydrates.
* * * * *
0
51. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export
[[Page 46084]]
Control Classification Number (ECCN) 1C355 is amended by revising the
License Requirements section to read as follows:
1C355 Chemical Weapons Convention (CWC) Schedule 2 and 3 chemicals and
families of chemicals not controlled by ECCN 1C350 or by the Department
of State under the ITAR
License Requirements
Reason for Control: CW, AT.
Control(s) CW applies to entire entry. The Commerce Country Chart
is not designed to determine licensing requirements for items
controlled for CW reasons. A license is required to export or reexport
CWC Schedule 2 chemicals and mixtures identified in 1C355.a to States
not Party to the CWC (i.e., destinations not listed in Supplement No. 2
to part 745 of the EAR). A license is required to export CWC Schedule 3
chemicals and mixtures identified in 1C355.b to States not Party to the
CWC, unless an End-Use Certificate issued by the government of the
importing country is obtained by the exporter, prior to export. A
license is required to reexport CWC Schedule 3 chemicals and mixtures
identified in 1C355.b from a State not Party to the CWC to any other
State not Party to the CWC. (See Sec. 742.18 of the EAR for license
requirements and policies for toxic and precursor chemicals controlled
for CW reasons.)
AT applies to entire entry. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
AT reasons in 1C355. A license is required, for AT reasons, to export
or reexport items controlled by 1C355 to a country in Country Group E:1
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR
for additional information on the AT controls that apply to Iran,
Libya, North Korea, Sudan, and Syria. See part 746 of the EAR for
additional information on the comprehensive trade sanctions that apply
to Cuba and Iran. See Supplement No. 1 to part 736 of the EAR for
export controls on Syria.)
* * * * *
0
52. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1C395 is amended by
revising the License Requirements section to read as follows:
1C395 Mixtures and medical, analytical, diagnostic, and food testing
kits not controlled by ECCN 1C350, as follows (See List of Items
Controlled)
License Requirements
Reason for Control: CB, CW, AT
Control(s): CB applies to entire entry. The Commerce Country Chart
is not designed to determine licensing requirements for items
controlled for CB reasons in 1C395. A license is required, for CB
reasons, to export or reexport mixtures controlled by 1C395.a and test
kits controlled by 1C395.b to States not Party to the CWC (i.e.,
destinations not listed in Supplement No. 2 to part 745 of the EAR).
CW applies to entire entry. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
CW reasons. A license is required for CW reasons, as follows, to States
not Party to the CWC (i.e., destinations not listed in Supplement No. 2
to part 745 of the EAR): (1) exports and reexports of mixtures
controlled by 1C395.a, (2) exports and reexports of test kits
controlled by 1C395.b that contain CWC Schedule 2 chemicals controlled
by ECCN 1C350, (3) exports of test kits controlled by 1C395.b that
contain CWC Schedule 3 chemicals controlled by ECCN 1C350, except that
a license is not required, for CW reasons, to export test kits
containing CWC Schedule 3 chemicals if an End-Use Certificate issued by
the government of the importing country is obtained by the exporter
prior to export, and (4) reexports from States not Party to the CWC of
test kits controlled by 1C395.b that contain CWC Schedule 3 chemicals.
(See Sec. 742.18 of the EAR for license requirements and policies for
toxic and precursor chemicals controlled for CW reasons.)
AT applies to entire entry. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
AT reasons in 1C395. A license is required, for AT reasons, to export
or reexport items controlled by 1C395 a country in Country Group E:1 of
Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR for
additional information on the AT controls that apply to Iran, Libya,
North Korea, Sudan, and Syria. See part 746 of the EAR for additional
information on the comprehensive trade sanctions that apply to Cuba and
Iran. See Supplement No. 1 to part 736 of the EAR for export controls
on Syria.)
* * * * *
0
53. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1C992 is amended by
revising the License Requirements section to read as follows:
1C992 Commercial charges and devices containing energetic materials,
n.e.s. and nitrogen trifluoride in a gaseous state
License Requirements
Reason for Control: AT
------------------------------------------------------------------------
Control(s) Country Chart
------------------------------------------------------------------------
AT applies to entire entry AT Column 1 and Iraq
------------------------------------------------------------------------
* * * * *
0
54. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1C995 is amended by
revising the License Requirements section to read as follows:
1C995 Mixtures not controlled by ECCN 1C350, ECCN 1C355 or ECCN 1C395
that contain chemicals controlled by ECCN 1C350 or ECCN 1C355 and
medical, analytical, diagnostic, and food testing kits not controlled
by ECCN 1C350 or ECCN 1C395 that contain chemicals controlled by ECCN
1C350.d, as follows (see List of Items Controlled)
License Requirements
Reason for Control: AT Column 1 and Iraq.
* * * * *
0
55. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins,
Export Control Classification Number (ECCN) 1C999 is amended by
revising the License Requirements section to read as follows:
1C999 Specific materials, n.e.s., as follows (see List of Items
Controlled)
License Requirements
Reason for Control: AT
Control(s)--Country Chart: AT applies to entire entry. A license is
required for items controlled by this entry to Iraq and North Korea for
anti-terrorism reasons. The Commerce Country Chart is not designed to
determine AT licensing requirements for this entry. See Sec. 742.19
and Sec. 746.3 of the EAR for additional information.
* * * * *
0
56. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Materials, Chemicals,
[[Page 46085]]
``Microorganisms,'' and Toxins, Export Control Classification Number
(ECCN) 1D018 is amended by revising the License Requirements section to
read as follows:
1D018 ``Software'' specially designed or modified for the
``development'', ``production'', or ``use'' of items controlled by
1B018
License Requirements
Reason for Control: NS, MT, AT, UN.
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
MT applies to ``software'' for the MT Column 1.
``development'', ``production'', or
``use'' of items controlled by 1B018
for MT reasons.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
57. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 2--Materials Processing, Export Control Classification Number
(ECCN) 2B018 is amended by revising the License Requirements section to
read as follows:
2B018 Equipment on the International Munitions List
License Requirements
Reason for Control: NS, MT, RS, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
MT applies to specialized machinery, MT Column 1.
equipment, and gear for producing
rocket systems (including ballistic
missile systems, space launch
vehicles, and sounding rockets) and
unmanned air vehicle systems
(including cruise missile systems,
target drones, and reconnaissance
drones) usable in systems that are
controlled for MT reasons including
their propulsion systems and
components, and pyrolytic deposition
and densification equipment.
RS applies to entire entry............ RS Column 2.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
58. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 2--Materials Processing, Export Control Classification Number
(ECCN) 2D018 is amended by revising the License Requirements section to
read as follows:
2D018 ``Software'' for the ``development'', ``production'' or ``use''
of equipment controlled by 2B018
License Requirements
Reason for Control: NS, MT, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
MT applies to ``software'' for MT Column 1.
equipment controlled by 2B018 for MT
reasons.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
59. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 2--Materials Processing, Export Control Classification Number
(ECCN) 2E018 is amended by revising the License Requirements section to
read as follows:
2E018 ``Technology'' for the ``use'' of equipment controlled by 2B018
License Requirements
Reason for Control: NS, MT, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
MT applies to ``technology'' for MT Column 1.
equipment controlled by 2B018 for MT
reasons.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
60. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4--Computers, the following Export Control Classification
Number (ECCN) 4A003 is amended by revising the License Requirements
section, to read as follows:
4A003 ``Digital computers'', ``electronic assemblies'', and related
equipment therefor, as follows, and specially designed components
therefor
License Requirements
Reason for Control: NS, MT, CC, AT, NP, XP
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to 4A003.b and .c.......... NS Column 1.
NS applies to 4A003.a, .e, and .g..... NS Column 2.
MT applies to digital computers used MT Column 1.
as ancillary equipment for test
facilities and equipment that are
controlled by 9B005 or 9B006.
CC applies to ``digital computers'' CC Column 1.
for computerized finger-print
equipment.
AT applies to entire entry (refer to AT Column 1.
4A994 for controls on ``digital
computers'' with a CTP >=6 but <= to
190,000 MTOPS).
------------------------------------------------------------------------
NP applies, unless a License Exception is available. See Sec.
742.3(b) of the EAR for information on applicable licensing review
policies.
XP applies to ``digital computers'' with a CTP greater than 190,000
MTOPS, unless a License Exception is available. XP controls vary
according to destination and end-user and end-use; however, XP does not
apply to Canada. See Sec. 742.12 of the EAR for additional
information.
Note: For all destinations, except those countries in Country
Group E:1 of Supplement No. 1 to part 740 of the EAR, no license is
required (NLR) for computers with a CTP not greater than 190,000
MTOPS and for ``electronic assemblies'' described in 4A003.c that
are not capable of exceeding a CTP greater than 190,000 MTOPS in
aggregation, except certain transfers as set forth in Sec. 746.3
(Iraq). Computers controlled in this entry for MT reasons are not
eligible for NLR.
* * * * *
0
61. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6--Sensors and Lasers, Export Control Classification Number
(ECCN) 6A002 is amended by revising the License Requirements section to
read as follows:
6A002 Optical sensors
License Requirements
Reason for Control: NS, MT, CC, RS, AT, UN
[[Page 46086]]
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 2.
MT applies to optical detectors in MT Column 1.
6A002.a.1, a.3, or .e that are
specially designed or modified to
protect ``missiles'' against nuclear
effects (e.g., Electromagnetic Pulse
(EMP), X-rays, combined blast and
thermal effects), and usable for
``missiles''.
RS applies to 6A002.a.1, a.2, a.3, .c, RS Column 1.
and .e.
CC applies to police-model infrared CC Column 1.
viewers in 6A002.c.
AT applies to entire entry............ AT Column 1.
UN applies to 6A002.a.1, a.2 a.3 and c Iraq and Rwanda.
------------------------------------------------------------------------
License Requirement Notes: See Sec. 743.1 of the EAR for
reporting requirements for exports under License Exceptions.
* * * * *
0
62. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6--Sensors and Lasers, Export Control Classification Number
(ECCN) 6A003 is amended by revising the License Requirements section to
read as follows:
6A003 Cameras
License Requirements
Reason for Control: NS, NP, RS, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 2.
NP applies to items controlled in NP Column 1.
paragraphs 6A003.a.2, a.3 and a.4.
RS applies to items controlled in RS Column 1.
6A003.b.3 and b.4.
AT applies to entire entry............ AT Column 1.
UN applies to items controlled in Iraq and Rwanda.
6A003.b.3 and b.4.
------------------------------------------------------------------------
* * * * *
0
63. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6--Sensors and Lasers, is amended by removing Export Control
Classification Number (ECCN) 6A018.
0
64. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6--Sensors and Lasers, Export Control Classification Number
(ECCN) 6A992 is amended by revising the License Requirements section to
read as follows:
6A992 Optical Sensors, not controlled by 6A002
License Requirements
Reason for Control: AT
------------------------------------------------------------------------
Control(s) Country Chart
------------------------------------------------------------------------
AT applies to entire entry........... AT Column 1 and Iraq.
------------------------------------------------------------------------
* * * * *
0
65. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6--Sensors and Lasers, Export Control Classification Number
(ECCN) 6E001 is amended by revising the heading and the License
Requirements section to read as follows:
6E001 ``Technology'' according to the General Technology Note for the
``development'' of equipment, materials or ``software'' controlled by
6A (except 6A018, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, or 6A998),
6B (except 6B995), 6C (except 6C992 or 6C994), or 6D (except 6D991,
6D992, or 6D993
License Requirements
Reason for Control: NS, MT, NP, RS, CC, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for NS Column 1.
items controlled by 6A001 to 6A008,
6B004 to 6B008, 6C002 to 6C005, or
6D001 to 6D003.
MT applies to ``technology'' for MT Column 1.
items controlled by 6A002, 6A007,
6A008, 6A102, 6A107, 6A108, 6B008,
6B108, 6D001, 6D002, 6D102 or 6D103
for MT reasons.
NP applies to ``technology'' for NP Column 1.
items controlled by 6A003, 6A005,
6A202, 6A203, 6A205, 6A225, 6A226, or
6D001 for NP reasons.
RS applies to ``technology'' for RS Column 1.
equipment controlled by 6A002.a.1,
.a.2, .a.3, .c, or .e, 6A003.b.3 or
.b.4, or 6A008.j.1.
CC applies to ``technology'' for CC Column 1.
equipment controlled by 6A002 for CC
reasons.
AT applies to entire entry........... AT Column 1.
UN applies to ``technology'' for Iraq and Rwanda.
equipment controlled by 6A002 or
6A003 for UN reasons.
------------------------------------------------------------------------
License Requirement Notes: See Sec. 743.1 of the EAR for
reporting requirements for exports under License Exceptions.
* * * * *
0
66. Supplement No. 1 to part 774 (the Commerce Control List), Category
6--Sensors and Lasers, Export Control Classification Number (ECCN)
6E002 is amended by revising the heading and the License Requirements
section to read as follows:
6E002 ``Technology'' according to the General Technology Note for the
``production'' of equipment or materials controlled by 6A (except
6A018, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997 or 6A998), 6B (except
6B995) or 6C (except 6C992 or 6C994)
License Requirements
Reason for Control: NS, MT, NP, RS, CC, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for NS Column 1.
equipment controlled by 6A001 to
6A008, 6B004 to 6B008, or 6C002 to
6C005.
MT applies to ``technology'' for MT Column 1.
equipment controlled by 6A002, 6A007,
6A008, 6A102, 6A107, 6A108, 6B008, or
6B108 for MT reasons.
NP applies to ``technology'' for NP Column 1.
equipment controlled by 6A003, 6A005,
6A202, 6A203, 6A205, 6A225 or 6A226
for NP reasons.
RS applies to ``technology''for RS Column 1.
equipment controlled by 6A002.a.1,
.a.2, .a.3, .c, or .e, 6A003.b.3 or
.b.4, or 6A008.j.1.
CC applies to ``technology'' for CC Column 1.
equipment controlled by 6A002 for CC
reasons.
AT applies to entire entry............ AT Column 1.
UN applies to ``technology'' for Iraq and Rwanda.
equipment controlled by 6A002 or
6A003 for UN reasons.
------------------------------------------------------------------------
[[Page 46087]]
License Requirement Notes: See Sec. 743.1 of the EAR for
reporting requirements for exports under License Exceptions.
* * * * *
0
67. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 8--Marine, Export Control Classification Number (ECCN) 8A018
is amended by revising the License Requirements section to read as
follows:
8A018 Items on the International Munitions List
License Requirements
Reason for Control: NS, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
68. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 8--Marine, Export Control Classification Number (ECCN) 8A918
is amended by revising the License Requirements section to read as
follows:
8A918 Marine Boilers
License Requirements
Reason for Control: RS, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
RS applies to entire entry........... RS Column 2.
AT applies to entire entry........... AT Column 1.
UN applies to entire entry........... Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
69. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Propulsion Systems, Space Vehicles and Related Equipment,
Export Control Classification Number (ECCN) 9A018 is amended by
revising the License Requirements section to read as follows:
9A018 Equipment on the International Munitions List
License Requirements
Reason for Control: NS, RS, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry........... NS Column 1.
RS applies to 9A018.a and b.......... RS Column 2.
AT applies to entire entry........... AT Column 1.
UN applies to entire entry........... Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
70. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Propulsion Systems, Space Vehicles and Related Equipment,
Export Control Classification Number (ECCN) 9A991 is amended by
revising the License Requirements section to read as follows:
9A991 ``Aircraft'', n.e.s., and gas turbine engines not controlled by
9A001 or 9A101 and parts and components, n.e.s.
License Requirements
Reason for Control: AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
AT applies to entire entry........... AT Column 1.
UN applies to 9A991.a................ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
71. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Propulsion Systems, Space Vehicles and Related Equipment,
Export Control Classification Number (ECCN) 9D018 is amended by
revising the License Requirements section to read as follows:
9D018 ``Software'' for the ``use'' of equipment controlled by 9A018
License Requirements
Reason for Control: NS, RS, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1.
RS applies to 9A018.a and .b.......... RS Column 2.
AT applies to entire entry............ AT Column 1.
UN applies to entire entry............ Iraq and Rwanda.
------------------------------------------------------------------------
* * * * *
0
72. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Propulsion Systems, Space Vehicles and Related Equipment,
Export Control Classification Number (ECCN) 9E018 is amended by
revising the License Requirements section to read as follows:
9E018 ``Technology'' for the ``development'', ``production'', or
``use'' of equipment controlled by 9A018
License Requirements
Reason for Control: NS, RS, AT, UN
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry............ NS Column 1
RS applies to 9A018.a and .b.......... RS Column 2
AT applies to entire entry............ AT Column 1
UN applies to entire entry............ Iraq and Rwanda
------------------------------------------------------------------------
* * * * *
0
73. Supplement No. 2 to Part 774 (General Technology and Software
Notes) is revised to read as follows:
Supplement No. 2 to Part 774 (General Technology and Software Notes)
1. General Technology Note. The export of ``technology'' that is
``required'' for the ``development'', ``production'', or ``use'' of
items on the Commerce Control List is controlled according to the
provisions in each Category.
``Technology'' ``required'' for the ``development'',
``production'', or ``use'' of a controlled product remains controlled
even when applicable to a product controlled at a lower level.
License Exception TSU is available for ``technology'' that is the
minimum necessary for the installation, operation, maintenance
(checking), and repair of those products that are eligible for License
Exceptions or that are exported under a license.
N.B.: This does not allow release under a License Exception of the
repair ``technology'' controlled by 1E002.e, 1E002.f, 8E002.a, or
8E002.b.
N.B.: The ``minimum necessary'' excludes ``development'' or
``production'' technology and permits ``use'' technology only to the
extent ``required'' to ensure safe and efficient use of the product.
Individual ECCNs may further restrict export of ``minimum necessary''
information.
2. General Software Note. License Exception TSU (``mass market''
software) is available to all destinations, except countries in Country
Group E:1 of Supplement No. 1 to part 740 of the EAR, for release of
software that is generally available to the public by being:
a. Sold from stock at retail selling points, without restriction,
by means of:
1. Over the counter transactions;
2. Mail order transactions;
3. Electronic transactions; or
4. Telephone call transactions; and
b. Designed for installation by the user without further
substantial support by the supplier.
Note: The General Software Note does not apply to ``software''
controlled by Category 5--part 2 (``Information Security''). For
[[Page 46088]]
``software'' controlled by Category 5, part 2, see Supplement No. 1
to part 774, Category 5, part 2, Note 3--Cryptography Note.
Dated: July 28, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-17532 Filed 7-29-04; 2:13 pm]
BILLING CODE 3510-33-P