[Federal Register Volume 63, Number 152 (Friday, August 7, 1998)]
[Rules and Regulations]
[Pages 42225-42229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21060]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Parts 738, 740, 742, 744, 746, 748, and 752
[Docket No. 980619158-8158-01]
RIN 0694-AB35
Revisions to the Export Administration Regulations; Conforming
Revisions to the Wassenaar Arrangement List of Dual-Use Items and
Revisions to Antiterrorism Controls
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Interim rule with request for comments.
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SUMMARY: On January 15, 1998, the Bureau of Export Administration
published an interim rule implementing the Wassenaar Arrangement List
of Dual-Use Items. Implementation of the Wassenaar List resulted in a
number of changes to the Commerce Control List (CCL). The major changes
involved the removal of national security controls on certain items,
while maintaining controls on these items for antiterrorism reasons.
Consistent with this revision, various antiterrorism Export Control
Classification Numbers (ECCNs) were enlarged to accommodate the items
removed from national security controls. An easy-to-follow pattern was
developed to track the movement of these items. Items formerly
classified as a XX001 entry, now default into a xx991 entry. In
addition, the January 15 rule moved items from one ECCN into another,
or merged two or more ECCNs together. This was done to simplify the CCL
and place together items that fall within the same general category.
For example, ECCN 9A992 (off-highway tractors) was merged with ECCN
9A993 (on-highway tractors) to form part of a new ECCN 9A990 that also
includes diesel engines.
This rule amends the Export Administration Regulations (EAR) by
making the necessary conforming revisions throughout the text of the
EAR, consistent with the January 15 revisions to the CCL.
[[Page 42226]]
DATES: Effective Date: This rule is effective August 7, 1998.
Comment Date: Comments on this rule must be received on or before
September 8, 1998.
ADDRESSES: Written comments should be sent to Patricia Muldonian,
Regulatory Policy Division, Bureau of Export Administration, Department
of Commerce, P.O. Box 273, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Patricia Muldonian, Regulatory Policy
Division, Bureau of Export Administration, Telephone: (202) 482-2440.
SUPPLEMENTARY INFORMATION:
Background
On January 15, 1998, the Bureau of Export Administration (BXA)
published an interim rule (63 FR 2452) that made changes to the
Commerce Control List (CCL) necessary to implement the Wassenaar
Arrangement. All items removed from national security controls as a
result of the Wassenaar List of Dual-Use Goods and Technologies
continue to be controlled for antiterrorism reasons. Consistent with
this revision, various antiterrorism Export Control Classification
Numbers (ECCNs) were enlarged to accommodate the items removed from
national security controls. In addition, in an effort to simplify and
harmonize the antiterrorism controls on the CCL, the January 15 rule
made the following renumbering revisions:
------------------------------------------------------------------------
Description of old
Old ECCN New ECCN ECCN
------------------------------------------------------------------------
1A988.................. 1A005.................. Bullet proof and
bullet resistant
vests.
1C993................. 1C990.................. Fibrous and
filamentary material
not controlled by
1C010 or 1C210, for
use in ``composite''
structures and with a
specific modulus of
3.18 x 106 m or
greater and a
specific tensile
strength of 7.62 x
104 m or greater.
1C994.................. 1C006.d................ Fluorocarbon
electronic cooling
fluids.
1E391.................. 1E351.................. Technology for the
disposal of chemicals
or microbiological
materials controlled
by 1C350, 1C351,
1C352, 1C353, or
1C354.
2B985.................. 0B986.................. Equipment specially
designed for
manufacturing shotgun
shells.
2B992.................. 2B996.................. Manual dimensional
inspection machines
with two or more
axes, and measurement
uncertainty equal to
or less (better) than
(3 + L/300)
micrometer in any
axes (L measured in
length in mm).
2B994.................. 2B997.................. Robots not controlled
by 2B007 or 2B207.
2D993.................. 2D991.................. Software specially
designed for the
development,
production, or use of
equipment controlled
by 2B991, 2B993 or
2B994.
2E993.................. 2E991.................. Technology for the use
of equipment
controlled by 2B991,
2B992, 2B993, or
2B994.
3A992.................. 3A991.................. Electronic devices and
components not
controlled by 3A001.
3A993.................. 3A992.a................ Electronic test
equipment, n.e.s.
3A994.................. 3A992.b/c.............. General purpose
electronic equipment
not controlled by
3A002.
3D994.................. 3D991.................. Software specially
designed for the
development,
production, or use of
electronic devices or
components controlled
by 3A992, electronic
test equipment
controlled by 3A993,
general purpose
electronic equipment
controlled by 3A994,
or manufacturing and
test equipment
controlled by 3B991.
3E994.................. 3E991.................. Technology for the
development,
production, and use
of electronic devices
controlled by 3A992.
5A990.................. 5A991.a................ Any type of
telecommunication
equipment not
controlled by
5A001.a.
5A991.................. 5A991.b................ Transmission
equipment, not
controlled by 5A001.
5A992.................. 5A991.f................ Mobile communication
equipment, n.e.s.
5A993.................. 5A991.g................ Radio relay
communications
equipment, n.e.s.
5A994.................. 5A991.c.1.............. Data message switching
equipment.
5B994.................. 5B991.................. Telecommunications
test equipment.
5D990.................. 5D991.................. Software specially
designed for the
development,
production and use of
equipment controlled
under 5A990 and
5A991.
5D992.................. 5D991.................. Software specially
designed or modified
for the development,
production, or use of
mobile communications
equipment.
5D993.................. 5D991.................. Software specially
designed or modified
for the development,
production, or use of
radio relay
communications
equipment.
5D994.................. 5D991.................. Software specially
designed or modified
for the development,
production, or use of
data (message)
switching equipment.
5E992.................. 5E991.................. Technology for the
development,
production, or use of
mobile communications
equipment.
5E993.................. 5E991.................. Technology for the
development,
production, or use of
radio relay
communications
equipment.
5E994.................. 5E991.................. Technology for the
development,
production, or use of
data (message)
switching equipment.
5A995.................. 5A992.................. Information security
equipment.
5D995.................. 5D992.................. Software n.e.s.,
specially designed or
modified for the
development,
production, or use of
information security
or cryptologic
equipment.
5E995.................. 5E991.................. Technology n.e.s., for
the development,
production, or use of
information security
or cryptologic
equipment.
6A994.................. 6A991.................. Marine or terrestrial
acoustic equipment.
6A990.................. 6A998.................. Airborne radar
equipment.
6D990.................. 6D991.................. Software specially
designed for the
development,
production, or use of
equipment controlled
by 6A990, 6A992 or
6A993.
6D994.................. 6D991.................. Software specially
designed for the
development,
production, or use of
equipment controlled
by 6A994.
6E990.................. 6E991.................. Technology for the
development,
production, or use of
equipment controlled
by 6A990, 6A992 or
6A993.
8A993.................. 8A992.h................ Self-contained under
water breathing
apparatus.
8A994.................. 8A992.f................ Boats.
8D993.................. 8D992.................. Software specially
designed or modified
for the development,
production, or use of
equipment controlled
by 8A993 and 8A994.
8E993.................. 8E992.................. Technology for the
development,
production, or use of
items controlled by
8A993 and 8A994.
9A990.................. 9A991.e................ Pressurized aircraft
breathing equipment,
n.e.s.; and specially
designed parts
therefor, n.e.s.
9A992.................. 9A990.b................ Off-highway tractors.
9A993.................. 9A990.c................ On-highway tractors.
9A994.................. 9A991.d................ Aircraft parts and
components.
[[Page 42227]]
9B994.................. 9B990.................. Vibration test
equipment.
------------------------------------------------------------------------
Although the Export Administration Act (EAA) expired on August 20,
1994, the President invoked the International Emergency Economic Powers
Act and continued in effect the EAR, and, to the extent permitted by
law, the provisions of the EAA in Executive Order 12924 of August 19,
1994, as extended by the President's notices of August 15, 1995 (60 FR
42767), August 14, 1996 (61 FR 42527) and August 13, 1997 (62 FR
43629).
Rulemaking Requirements
1. This interim rule has been determined to be not significant for
purposes of E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with a collection of information, subject to the
requirements of the Paperwork Reduction Act (PRA), unless that
collection of information displays a currently valid OMB Control
Number. This rule involves a collection of information subject to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) This
collection has been approved by the Office of Management and Budget
under control number 0694-0088. Send comments regarding these burden
estimates or any other aspect of these collections of information,
including suggestions for reducing the burden, to OMB Desk Officer, New
Executive Office Building, Washington, DC 20503.
3. This rule does not contain policies with Federalism implications
sufficient to warrant preparation of a Federalism assessment under
Executive Order 12612.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military and foreign affairs
function of the United States (Sec. 5 U.S.C. 553(a)(1)). Further, no
other law requires that a notice of proposed rulemaking and an
opportunity for public comment be given for this interim rule. Because
a notice of proposed rulemaking and an opportunity for public comment
are not required to be given for this rule under 5 U.S.C. or by any
other law, the analytical requirements of the Regulatory Flexibility
Act (5 U.S.C. 601 et seq. ) are not applicable.
However, because of the importance of the issues raised by these
regulations, this rule is issued in interim form and comments will be
considered in the development of final regulations. Accordingly, the
Department encourages interested persons who wish to comment to do so
at the earliest possible time to permit the fullest consideration of
their views.
The period for submission of comments will close September 8, 1998.
The Department will consider all comments received before the close of
the comment period in developing final regulations. Comments received
after the end of the comment period will be considered if possible, but
their consideration cannot be assured. The Department will not accept
public comments accompanied by a request that a part or all of the
material be treated confidentially because of its business proprietary
nature or for any other reason. The Department will return such
comments and materials to the person submitting the comments and will
not consider them in the development of final regulations. All public
comments on these regulations will be a matter of public record and
will be available for public inspection and copying. In the interest of
accuracy and completeness, the Department requires comments in written
form.
Oral comments must be followed by written memoranda, which will
also be a matter of public record and will be available for public
review and copying. Communications from agencies of the United States
Government or foreign governments will not be made available for public
inspection.
The public record concerning these regulations will be maintained
in the Bureau of Export Administration Freedom of Information Records
Inspection Facility, Room 4525, Department of Commerce, 14th Street and
Pennsylvania Avenue, N.W., Washington, D.C. 20230. Records in this
facility, including written public comments and memoranda summarizing
the substance of oral communications, may be inspected and copied in
accordance with regulations published in Part 4 of Title 15 of the Code
of Federal Regulations. Information about the inspection and copying of
records at the facility may be obtained from Margaret Cornejo, Bureau
of Export Administration Freedom of Information Officer, at the above
address or by calling (202) 482-5653.
List of Subjects
15 CFR Part 738
Exports, Foreign trade.
15 CFR Parts 740, 748, and 752
Administrative practice and procedure, Exports, Foreign trade,
Reporting and recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 744
Exports, Foreign Trade, Reporting and recordkeeping requirements.
15 CFR Part 746
Embargoes, Exports, Foreign Trade, Reporting and recordkeeping
requirements.
Accordingly, parts 738, 740, 742, 744, 746, 748, and 752 of the
Export Administration Regulations (15 CFR parts 730-799) are amended as
follows:
1-2. The authority citation for part 738 is revised 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, 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 287c,
3201 et seq., 6004; 42 U.S.C. 2139a, 6212; 43 U.S.C. 1354; 46 U.S.C.
app. 466c; 50 U.S.C. app. 5; Sec. 201, Pub. L. 104-58, 109 Stat. 557
(30 U.S.C. 185(s), 185(u)); E.O. 12924, 3 CFR, 1994 Comp., p. 917;
E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13, 1997 (62
FR 43629, August 15, 1997).
3. The authority citation for part 740 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13020, 3 CFR, 1996 Comp.
p. 219; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of August 13,
1997 (62 FR 43629, August 15, 1997).
4. The authority citation for part 742 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 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;
E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 3
CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp.,
p. 917; E.O. 12938, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 3 CFR,
1996 Comp. p. 219; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of
August 13, 1997 (62 FR 43629, August 15, 1997).
5. The authority citation for 15 CFR part 744 is revised to read as
follows:
[[Page 42228]]
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; E.O. 12058, 43 FR 20947, 3
CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp.,
p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O.
12938, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 3 CFR, 1996 Comp., p.
228; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).
6. The authority citation for 15 CFR part 746 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 287c, 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p.
899; E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 13,
1997 (62 FR 43629, August 15, 1997).
7. The authority citation for 15 CFR part 748 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 3 CFR, 1996
Comp., p. 228; Notice of August 13, 1997 (62 FR 43629, August 15,
1997).
8. The authority citation for 15 CFR part 752 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13020, 3 CFR, 1996 Comp.
p. 219; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).
PART 738--[AMENDED]
9. Section 738.3 is amended by redesignating paragraphs (a)(2)(A)
and (a)(2)(B) as paragraphs (a)(2)(i) and (a)(2)(ii), respectively, and
by revising the heading of newly designated paragraph (a)(2)(ii) to
read as follows:
Sec. 738.3 Commerce Country Chart structure.
(a) * * *
(2) * * *
(ii) ECCNs 0A986, 0A988, 0B986, 1A005, 2A994, 2D994, and 2E994. * *
*
* * * * *
PART 740--[AMENDED]
10. Supplement No. 1 to Sec. 740.11 is amended:
a. By revising paragraph (a)(3); and
b. By revising paragraph (b)(3), to read as follows:
Sec. 740.11 Governments and international organizations (GOV).
* * * * *
Supplement No. 1 to Sec. 740.11--Additional Restrictions on Use of
License Exception GOV
(a) * * *
(3) Regional stability items controlled under Export Control
Classification Numbers (ECCNs) 6A002, 6A003, 6E001, 6E002, 7D001,
7E001, 7E002, 7E101, 9A018, 9D018 and 9E018 as described in 742.6(a)
of the EAR; or
* * * * *
(b) * * *
(3) Regional stability items controlled under Export Control
Classification Numbers (ECCNs) 6A002, 6A003, 6E001, 6E002, 7D001,
7E001, 7E002, 7E101, 9A018, 9D018 and 9E018 as described in 742.6(a)
of the EAR; or
* * * * *
11. Section 740.16 is amended:
a. By revising paragraph (b)(2); and
b. By revising paragraph (i), to read as follows:
Sec. 740.16 Additional permissive reexports (APR).
* * * * *
(b) * * *
(2) Commodities controlled for nuclear nonproliferation or missile
technology reasons.
* * * * *
(i) Reexports to Sudan of items controlled by ECCNs 2A994; 3A992.a;
5A991.f; 5A992; 6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a
and .b; and 9A991.d and .e. In addition, items in these ECCNs are not
counted as controlled U.S. content for purposes of determining license
requirements for U.S. parts, components, and materials incorporated in
foreign-made products. However, the export from the United States to
any destination with knowledge that they will be reexported directly or
indirectly, in whole or in part to Sudan is prohibited without a
license.
* * * * *
PART 742--[AMENDED]
Sec. 742.2 [Amended]
12. In Sec. 742.2, paragraphs (a)(1)(ii) and (a)(2)(iii) are
amended by revising the phrase ``(ECCNs 1E001 and 1E391)'' to read
``(ECCNs 1E001 and 1E351)''.
Sec. 742.7 [Amended]
13. Section 742.7(a)(1) is amended by revising the phrase ``6E001
(for police-model infrared viewers only), and 9A980'' to read ``6E001
(for police-model infrared viewers only), 6E002 (for police-model
infrared viewers only), and 9A980''.
14. Section 742.8 is amended by revising paragraph (a)(2) to read
as follows:
Sec. 742.8 Anti-terrorism: Iran.
(a) * * *
(2) If AT column 1 or AT column 2 of the Commerce Country Chart
(Supplement No. 1 to part 738 of the EAR) is indicated in the
appropriate ECCN, a license is required for reexport to Iran for anti-
terrorism purposes, except for ECCNs 2A994; 3A992.a; 5A991.f; 5A992;
6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a and .b; and
9A991.d and .e. In addition, items in these ECCNs are not counted as
controlled U.S. content for the purpose of determining license
requirements for U.S. parts, components or materials incorporated into
foreign made products. However, the export from the United States to
any destination with knowledge that they will be reexported directly or
indirectly, in whole or in part to Iran is prohibited without a
license. See paragraph (a)(5) of this section for controls maintained
by the Department of the Treasury.
* * * * *
Sec. 742.9 [Amended]
15. Section 742.9(b)(1)(iv) is amended by revising the phrase
``except for ECCNs 6A990, 7A994, and 9A994,'' to read ``except for
ECCNs 6A998, 7A994, and 9A991.d,''.
16. Section 742.10 is amended by revising paragraph (a)(2) to read
as follows:
Sec. 742.10 Anti-terrorism: Sudan.
(a) * * *
(2) If AT column 1 or AT column 2 of the Commerce Country Chart
(Supplement No. 1 to part 738 of the EAR) is indicated in the
appropriate ECCN, a license is required for reexport to Sudan for anti-
terrorism purposes, except for ECCNs 2A994; 3A992.a; 5A991.f; 5A992;
6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a and .b; and
9A991.d and .e. In addition, items in these ECCNs are not counted as
controlled U.S. content for the purpose of determining license
requirements for U.S. parts, components or materials incorporated into
foreign made products. However, the export from the United States to
any destination with knowledge that they will be reexported directly or
indirectly, in whole or in part to Sudan is prohibited without a
license.
* * * * *
Supplement No. 2 to Part 742 [Amended]
17. Supplement No. 2 to part 742 is amended:
a. By revising the phrase ``controlled by 9A994:'' to read
``controlled by ECCN 9A991.d:'' in paragraph (c)(6)(i)(C);
[[Page 42229]]
b. By revising the phrase ``ECCNs 5A001.c and 5A994'' to read
``ECCNs 5A001.c and 5A991.c.1'' in the introductory text of paragraph
(c)(29); and
c. By revising the phrase ``described in ECCN 1C994'' to read
``described in ECCN 1C006.d'' in the heading of paragraph (c)(33).
PART 744--[AMENDED]
18. Section 744.8 is amended by revising paragraph (b) to read as
follows:
Sec. 744.8 Restrictions on certain exports to all countries for Libyan
aircraft.
* * * * *
(b) Scope of products subject to end-use prohibition for Libyan
aircraft. The general end-use prohibition in paragraph (a) of this
section applies to items controlled by ECCNs 6A008, 6A108, 6A998,
7A001, 7A002, 7A003, 7A004, 7A006, 7A101, 7A102, 7A103, 7A104, 7A994,
9A001, 9A003, 9A018.a, 9A101, and 9A991.
* * * * *
PART 746--[AMENDED]
Sec. 746.4 [Amended]
19. Section 746.4(c)(6) is amended by revising the phrase ``ECCN
9A992'' to read ``ECCN 9A990.b''.
20. Section 746.7 is amended by revising paragraph (a)(2)(ii) to
read as follows:
Sec. 746.7 Iran.
* * * * *
(a) * * *
(2) * * *
(ii) To reexport to Iran any of the items identified in paragraph
(a)(2)(i) of this section, except for ECCNs 2A994; 3A992.a; 5A991.f;
5A992; 6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a and .b;
and 9A991.d and .e. However, the export of these items from the United
States to any destination with knowledge that they will be reexported,
in whole or in part, to Iran, is prohibited without a license; or
* * * * *
21. Section 746.8 is amended by revising paragraph (b)(1)(ii) to
read as follows:
Sec. 746.8 Rwanda.
* * * * *
(b) * * *
(1) * * *
(ii) Items described by any ECCN ending in ``018'', and items
described by ECCNs 0A982; 0A984; 0A986; 0A988; 0B986; 1A005; 5A980;
6A002.a.1, a.2, a.3, and .c; 6A003.b.3 and b.4; 6E001; 6E002; and
9A991.a.
* * * * *
PART 748--[AMENDED]
22. Supplement No. 2 to part 748 is amended by revising paragraphs
(h)(1)(i)(G) and (h)(1)(ii)(H) to read as follows:
Supplement No. 2 to Part 748--Unique License Application
Requirements
* * * * *
(h) * * *
(1) * * *
(i) * * *
(G) Description of capabilities related to ``real time
processing'' and receiving computer aided-design;
* * * * *
(ii) * * *
(H) Slide motion test results.
* * * * *
PART 752--[AMENDED]
Sec. 752.3 [Amended]
23. Section 752.3(a)(2) is amended by revising the phrase ``1E001,
1E350, 1E391, 2B352,'' to read ``1E001, 1E350, 1E351, 2B352,''.
Dated: July 30, 1998.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 98-21060 Filed 8-6-98; 8:45 am]
BILLING CODE 3510-33-P