or the exporter's designated sales representative retains ``effective
control'' over the commodities and software while they are abroad. The
commodities and software may not be used when abroad for more than the
minimum extent required for effective demonstration. The commodities
and software may not be exhibited or demonstrated at any one site for
longer than 120 days after installation and debugging, unless
authorized by BIS. However, before or after an exhibition or
demonstration, pending movement to another site, return to the United
States or the foreign reexporter, or BIS approval for other
disposition, the commodities and software may be placed in a bonded
warehouse or a storage facility provided that the exporter retains
``effective control'' over their disposition. The export documentation
for this type of transaction must show the exporter as ultimate
consignee, in care of the person who will have control over the
commodities and software abroad.
    (6) Inspection and calibration. Commodities to be inspected,
tested, calibrated, or repaired abroad may be exported, reexported, and
transferred (in-country) under this paragraph (a)(6)

to all destinations except Country Group E:1.
    (7) Containers. Containers for which another license exception is
not available and that are necessary for shipment of commodities may be
exported, reexported, and transferred (in-country) under this paragraph
(a)(7). However, this paragraph does not authorize the export of the
container's contents, which, if not exempt from licensing, must be
separately authorized for export under either a license exception or a
license.
    (8) Assembly in Mexico. Commodities may be exported to Mexico under
Customs entries that require return to the United States after
processing, assembly, or incorporation into end products by companies,
factories, or facilities participating in Mexico's in-bond
industrialization program (Maquiladora) under this paragraph (a)(8),
provided that all resulting end-products (or the commodities
themselves) are returned to the United States.
    (9) News media. (i) Commodities necessary for news-gathering
purposes (and software necessary to use such commodities) may be
temporarily exported or reexported for accredited news media personnel
(i.e., persons with credentials from a news-gathering or reporting
firm) to Cuba, North Korea, Sudan, or Syria (see Supplement No. 1 to
part 740) if the commodities:
    (A) Are retained under ``effective control'' of the exporting news-
gathering firm in the country of destination;
    (B) Remain in the physical possession of the news media personnel
in the country of destination. The term physical possession for
purposes of this paragraph (a)(9) means maintaining effective measures
to prevent unauthorized access (e.g., securing equipment in locked
facilities or hiring security guards to protect the equipment); and
    (C) Are removed with the news media personnel at the end of the
trip.
    (ii) When exporting under this paragraph (a)(9) from the United
States, the exporter must email a copy of the packing list or similar
identification of the exported commodities, to
<EMAIL_ADDRESS>specifying the destination and estimated
dates of departure and return. The Office of Export Enforcement (OEE)
may check returns to assure that the provisions of this paragraph
(a)(9) are being used properly.
    (iii) Commodities or software necessary for news-gathering purposes
that accompany news media personnel to all other destinations shall be
exported, reexported, or transferred (in-country) under paragraph
(a)(1), tools of trade, of this section if owned by the news gathering
firm, or if they are personal property of the individual news media
personnel. Note that paragraphs (a)(1), tools of trade, and (a)(9),
news media, of this section do not preclude independent accredited
contract personnel, who are under control of news-gathering firms while
on assignment, from using these provisions, provided that the news
gathering firm designates an employee of the contract firm to be
responsible for the equipment.
    (10) Temporary exports to a U.S. person's foreign subsidiary,
affiliate, or facility abroad. Components, parts, tools, accessories,
or test equipment exported by a U.S. person to a subsidiary, affiliate,
or facility owned or controlled by the U.S. person, if the components,
parts, tools, accessories, or test equipment are to be used to
manufacture, assemble, test, produce, or modify items, provided that
such components, parts, tools, accessories or test equipment are not
transferred (in-country) or reexported from such subsidiary, affiliate,
or facility, alone or incorporated into another item, without prior
authorization by BIS.
    (11) [Reserved].
    (12) U.S. persons. For purposes of this Sec.  740.9, a U.S. person
is defined as follows: an individual who is a citizen of the United
States, an individual who is a lawful permanent resident as defined by
8 U.S.C. 1101(a)(2) or an individual who is a protected individual as
defined by 8 U.S.C. 1324b(a)(3). U.S. person also means any juridical
person organized under the laws of the United States, or any
jurisdiction within the United States (e.g., corporation, business
association, partnership, society, trust, or any other entity,
organization or group that is authorized to do business in the United
States).
    (13) Destinations. Destination restrictions apply to temporary
exports, reexports, or transfers (in-country) to and for use on any
vessel, aircraft or territory under ownership, control, lease, or
charter by any country specified in any authorizing paragraph of this
section, or any national thereof.
    (14) Return or disposal of items. All items exported, reexported,
or transferred (in-country) under these provisions must, if not
consumed or destroyed in the normal course of authorized temporary use
abroad, be returned as soon as practicable but no later than one year
after the date of export, reexport, or transfer to the United States or
other country from which the items were so transferred. Items not
returned shall be disposed of or retained in one of the following ways:
    (i) Permanent export, reexport, or transfer (in-country). An
exporter or reexporter who wants to sell or otherwise dispose of the
items abroad, except as permitted by this or other applicable provision
of the EAR, must apply for a license in accordance with Sec. Sec.
748.1, 748.4 and 748.6 of the EAR. (Part 748 of the EAR contains for
more information about license applications.) The application must be
supported by any documents that would be required in support of an
application for export license for shipment of the same items directly
from the United States to the proposed destination.
    (ii) Use of a license. An outstanding license may also be used to
dispose of items covered by the provisions of this paragraph (a),
provided that the outstanding license authorizes direct shipment of the
same items to the same new ultimate consignee or end-user.
    (iii) Authorization to retain item abroad beyond one year. An
exporter, reexporter or transferor who wants to retain an item at the
temporary location beyond one year must apply for a license in
accordance with Sec. Sec.  748.1, 748.4 and 748.6 of the EAR to BIS at
least 90 days prior to the expiration of the one-year period. The
application must include the name and address of the exporter, the date
the items were exported, a brief product description, and the
justification for the extension. If BIS approves the extension, the
applicant will receive authorization for an extension not to exceed
four years from the date of initial export, reexport, or transfer. Any
request for retaining the items abroad for a period exceeding four
years must be made in accordance with the requirements of paragraph
(a)(14)(i) of this section.
    (b) Exports of items temporarily in the United States. (1) Items
moving in transit through the United States. Subject to the following
conditions, the provisions of this paragraph (b)(1) authorize export of
items moving in transit through the United States under a
Transportation and Exportation (T.&E.) customs entry or an Immediate
Exportation (I.E.) customs entry made at a U.S. Customs and Border
Protection Office.
    (i) Items controlled for national security (NS) reasons, nuclear
proliferation (NP) reasons, or chemical and biological weapons (CB)
reasons may not be exported to Country Group D:1, D:2, or D:3 (see
Supplement No. 1 to part 740), respectively, under this paragraph
(b)(1).
    (ii) Items may not be exported to Country Group E:1 under this
section.

    (iii) The following may not be exported from the United States
under this paragraph (b)(1):
    (A) Commodities shipped to the United States under an International
Import Certificate, Form BIS-645P;
    (B) Chemicals controlled under ECCN 1C350; or
    (C) Horses for export by sea (refer to short supply controls in
part 754 of the EAR).
    (iv) The authorization to export in paragraph (b)(1) shall apply to
all shipments from Canada moving in transit through the United States
to any foreign destination, regardless of the nature of the commodities
or software or their origin, notwithstanding any other provision of
this paragraph (b)(1).
    (2) Items imported for marketing, or for display at U.S.
exhibitions or trade fairs. Subject to the following conditions, the
provisions of this paragraph (b)(2) authorize the export of items that
were imported into the United States for marketing, or for display at
an exhibition or trade fair and were either entered under bond or
permitted temporary free import under bond providing for their export
and are being exported in accordance with the terms of that bond.
    (i) Items may be exported to the country from which imported into
the United States. However, items originally imported from Cuba may not
be exported unless the U.S. Government had licensed the import from
that country.
    (ii) Items may be exported to any destination other than the
country from which imported except:
    (A) Items imported into the United States under an International
Import Certificate;
    (B) Exports to Country Group E:1 (see Supplement No. 1 to part
740); or
    (C) Exports to Country Group D:1, D:2, or D:3 (see Supplement No. 1
to part 740) of items controlled for national security (NS) reasons,
nuclear nonproliferation (NP) reasons, or chemical and biological
weapons (CB) reasons, respectively.
    (3) Return of foreign-origin items. A foreign-origin item may be
returned under this license exception to the country from which it was
imported if its characteristics and capabilities have not been enhanced
while in the United States, except that no foreign-origin items may be
returned to Cuba.
    (4) Return of shipments refused entry. Shipments of items refused
entry by the U.S. Customs and Border Protection, the Food and Drug
Administration, or other U.S. Government agency may be returned to the
country of origin, except to:
    (i) A destination in Cuba; or
    (ii) A destination from which the shipment has been refused entry
because of the Foreign Assets Control Regulations of the Treasury
Department, unless such return is licensed or otherwise authorized by
the Treasury Department, Office of Foreign Assets Control (31 CFR parts
500-599).

    Note 1 to paragraph (b): A commodity withdrawn from a bonded
warehouse in the United States under a `withdrawal for export'
customs entry is considered as `moving in transit'. It is not
considered as `moving in transit' if it is withdrawn from a bonded
warehouse under any other type of customs entry or if its transit
has been broken for a processing operation, regardless of the type
of customs entry.

    Note 2 to paragraph (b): Items shipped on board a vessel or
aircraft and passing through the United States from one foreign
country to another may be exported without a license provided that
(a) while passing in transit through the United States, they have
not been unladen from the vessel or aircraft on which they entered,
and (b) they are not originally manifested to the United States.

    Note 3 to paragraph (b): A shipment originating in Canada or
Mexico that incidentally transits the United States en route to a
delivery point in the same country does not require a license.

* * * * *

0
22. Section 740.10 is revised to read as follows:

Sec.  740.10  License Exception Servicing and replacement of parts and
equipment (RPL).

    License Exception RPL authorizes exports and reexports associated
with one-for-one replacement of parts, components, accessories, and
attachments. License Exception RPL also authorizes exports and
reexports of certain items currently ``subject to the EAR'' to or for,
or to replace, a defense article described in an export or reexport
authorization issued under the authority of the Arms Export Control
Act. It does not, however, authorize the export or reexport of defense
articles subject to the ITAR, i.e., described on the United States
Munitions List (22 CFR 121.1).
    (a) Parts, Components, Accessories, and Attachments. (1) Scope. The
provisions of this paragraph (a) authorize the export and reexport of
one-for-one replacement parts, components, accessories, and attachments
for previously exported equipment or other end items.
    (2) One-for-one replacement of parts, components, accessories, or
attachments. (i) The terms replacement parts, components, accessories,
or attachments as used in this section mean parts, components,
accessories, or attachments needed for the immediate repair of
equipment or other end items, including replacement of defective or
worn parts or components. (These terms include `subassemblies,' but do
not include test instruments or operating supplies. The term
`subassembly' means a number of parts or components assembled to
perform a specific function or functions within a commodity. One
example would be printed circuit boards with components mounted
thereon. This definition does not include major subsystems such as
those composed of a number of `subassemblies.') Items that improve or
change the basic design characteristics, e.g., as to accuracy,
capability, performance or productivity, of the equipment or other end
item upon which they are installed, are not deemed to be replacement
parts, components, accessories, or attachments. For kits consisting of
replacement parts or components, consult Sec.  740.9(a)(4) of this
part.
    (ii) Parts, components, accessories, and attachments may be
exported only to replace, on a one-for-one basis, parts, components,
accessories, or attachments, respectively, contained in commodities
that were: lawfully exported from the United States; lawfully
reexported; or made in a foreign country incorporating authorized U.S.-
origin parts, components, accessories, or attachments. ``600 series''
parts, components, accessories and attachments may be exported only to
replace, on a one-for-one basis, parts, components, accessories, or
attachments that were: lawfully exported from the United States, or
lawfully reexported. (For exports or reexports to the installed base in
Libya, see Sec.  764.7 of the EAR.) The conditions of the original U.S.
authorization must not have been violated. Accordingly, the export of
replacement parts, components, accessories, and attachments may be made
only by the party who originally exported or reexported the commodity
to be repaired, or by a party that has confirmed the existence of
appropriate authority for the original transaction.
    (iii) The parts, components, accessories, or attachments to be
replaced must either be destroyed abroad or returned promptly to the
person who supplied the replacements, or to a foreign firm that is
under the effective control of that person.
    (3) Exclusions to License Exception RPL. (i) No replacement parts,
components, accessories, or attachments may be exported to repair a
commodity exported under a license or other authorization if that
license or other

authorization included a condition that any subsequent replacements may
be exported only under a license.
    (ii) No parts, components, accessories, or attachments may be
exported to be held abroad as spares for future use. Replacements may
be exported to replace spares that were authorized to accompany the
export of equipment or other end items as those spares are used in the
repair of the equipment or other end item. This allows maintenance of
the stock of spares at a consistent level as the parts, components,
accessories, or attachments are used.
    (iii) No parts, components, accessories, or attachments may be
exported to any destination, except the countries listed in Supplement
No. 3 to part 744 of the EAR (Countries Not Subject to Certain Nuclear
End Use Restrictions in Sec.  744.2(a)), if the item is to be
incorporated into or used in nuclear weapons, nuclear explosive
devices, nuclear testing related to activities described in Sec.
744.2(a) of the EAR, the chemical processing of irradiated special
nuclear or source material, the production of heavy water, the
separation of isotopes of source and special nuclear materials, or the
fabrication of nuclear reactor fuel containing plutonium, as described
in Sec.  744.2(a) of the EAR.
    (iv) No replacement parts, components, accessories, or attachments
may be exported to countries in Country Group E:1 (see Supplement No. 1
to this part) (countries designated by the Secretary of State as
supporting acts of international terrorism) if the commodity to be
repaired is an ``aircraft'' (as defined in Sec.  772.1 of the EAR) or
is controlled for national security (NS) reasons.
    (v) No replacement parts, components, accessories, or attachments
may be exported to countries in Country Group E:1 (see Supplement No. 1
to this part) if the commodity to be repaired is explosives detection
equipment classified under ECCN 2A983 or related software classified
under ECCN 2D983.
    (vi) No replacement parts, components, accessories, or attachments
may be exported to countries in Country Group E:1 (see Supplement No. 1
to this part) if the commodity to be repaired is concealed object
detection equipment classified under ECCN 2A984 or related software
classified under ECCN 2D984.
    (vii) The conditions described in this paragraph (a)(3) relating to
replacement of parts, components, accessories, or attachments do not
apply to reexports to a foreign country of parts, components
accessories, or attachments as replacements in foreign-origin products,
if at the time the replacements are furnished, the foreign-origin
product is eligible for export to such country under any of the license
exceptions in this part or the exceptions in Sec.  734.4 of the EAR (De
minimis U.S. content).
    (viii) Parts, components, accessories, and attachments classified
in ``600 Series'' ECCNs may not be exported or reexported to a
destination listed in Country Group D:5 (see Supplement No. 1 to this
part).
    (4) Reexports. (i) Parts, components, accessories, and attachments
exported from the United States may be reexported to a new country of
destination, provided that the conditions established in paragraphs
(a)(2) and (3) of this section are met. A party reexporting U.S.-origin
one-for-one replacement parts, components, accessories, or attachments
shall ensure that the commodities being repaired were shipped to their
present location in accordance with U.S. law and continue to be
lawfully used, and that either before or promptly after reexport of the
replacement parts, components, accessories, or attachments, the
replaced commodities and software are either destroyed or returned to
the United States, or to the foreign firm in Country Group B (see
Supplement No. 1 to this part) that shipped the replacement parts.
    (ii) The conditions described in paragraph (a)(3) relating to
replacement of parts, components, accessories, or attachments
(excluding ``600 series'' ECCNs) do not apply to reexports to a foreign
country of parts, components, accessories, or attachments as
replacements in foreign-origin products, if at the time the
replacements are furnished, the foreign-origin product is eligible for
export to such country under any of the License Exceptions in this part
or the foreign-origin product is not subject to the EAR pursuant to
Sec.  734.4.
    (b) Servicing and replacement. (1) Scope. The provisions of this
paragraph (b) authorize the export and reexport to any destination,
except for ``600 series'' items to destinations identified in Country
Group D:5 (see Supplement No. 1 to this part) or otherwise prohibited
under the EAR, of commodities and software that were returned to the
United States for servicing and the replacement of defective or
unacceptable U.S.-origin commodities and software.
    (2) Commodities and software sent to a United States or foreign
party for servicing.
    (i) Definition. ``Servicing'' as used in this section means
inspection, testing, calibration or repair, including overhaul and
reconditioning. The servicing shall not have improved or changed the
basic characteristics (e.g., the accuracy, capability, performance, or
productivity) of the commodity or software as originally authorized for
export or reexport.
    (ii) Return of serviced commodities and software. When the serviced
commodity or software is returned, it may include any replacement or
rebuilt parts, components, accessories, or attachments necessary to its
repair and may be accompanied by any spare parts, components, tools,
accessories, attachments or other items sent with it for servicing.
    (iii) Commodities and software imported from Country Group D:1
except the People's Republic of China (PRC). Commodities and software
legally exported or reexported to a consignee in Country Group D:1
(except the People's Republic of China (PRC)) (see Supplement No. 1 to
this part) that are sent to the United States or a foreign party for
servicing may be returned to the country from which it was sent,
provided that both of the following conditions are met:
    (A) The exporter making the shipment is the same person or firm to
whom the original license was issued; and
    (B) The end use and the end user of the serviced commodities or
software and other particulars of the transaction, as set forth in the
application and supporting documentation that formed the basis for
issuance of the license have not changed.
    (iv) Terrorist supporting countries. No repaired commodity or
software may be exported or reexported to countries in Country Group
E:1 (see Supplement No. 1 to this part).
    (3) Replacements for defective or unacceptable U.S.-origin
equipment.
    (i) Subject to the following conditions, commodities or software
may be exported or reexported to replace defective or otherwise
unusable (e.g., erroneously supplied) items.
    (A) The commodity or software is ``subject to the EAR'' (see Sec.
734.2(a) of the EAR).
    (B) The commodity or software to be replaced must have been
previously exported or reexported in its present form under a license
or authorization granted by BIS or an authorization, e.g., a license or
exemption, issued under the authority of the Arms Export Control Act.
    (C) No commodity or software may be exported or reexported to
replace equipment that is worn out from normal use, nor may any
commodity or software be exported to be held in stock abroad as spare
equipment for future use.

    (D) The replacement item may not improve the basic characteristic,
e.g., as to accuracy, capability, performance, or productivity, of the
equipment as originally authorized, e.g., under a license, license
exception or an exemption, for export or reexport.
    (E) No shipment may be made to countries in Country Group E:1 (see
Supplement No. 1 to this part), or to any other destination to replace
defective or otherwise unusable equipment owned or controlled by, or
leased or chartered to, a national of any of those countries.
    (F) Commodities or software ``subject to the EAR'' and classified
in ``600 Series'' ECCNs may not be exported or reexported to a
destination identified in Country Group D:5 (see Supplement No. 1 to
this part).
    (ii) Special conditions applicable to exports to Country Group B
and Country Group D:1. In addition to the general conditions in
paragraph (b)(3)(i) of this section, the following conditions apply to
exports or reexports of replacements for defective or unacceptable
U.S.-origin commodities or software to a destination in Country Group B
or Country Group D:1 (see Supplement No. 1 to this part):
    (A) By making such an export or reexport, the exporter represents
that all the requirements of this paragraph (b) have been met and
undertakes to destroy or return the replaced parts as provided in
paragraph (b)(3)(ii)(C) of this section.
    (B) The defective or otherwise unusable equipment must be replaced
free of charge, except for transportation and labor charges. If
exporting to the countries listed in Country Group D:1 (except the
PRC), the exporter shall replace the commodity or software within the
warranty period or within 12 months of its shipment to the ultimate
consignee in the country of destination, whichever is shorter.
    (C) The commodity or software to be replaced must either be
destroyed abroad or returned to the United States, or to a foreign firm
in Country Group B that is under the effective control of the exporter,
or to the foreign firm that is providing the replacement part or
equipment. The destruction or return must be effected before, or
promptly after, the replacement item is exported from the United
States.
    (D) A party reexporting replacements for defective or unacceptable
U.S.-origin equipment must ensure that the commodities or software
being replaced were shipped to their present location in accordance
with U.S. law and continue to be legally used. See Sec.  764.7 of the
EAR for exports or reexports to the installed base in Libya.
    (c) Special recordkeeping requirements: ECCNs 2A983, 2A984, 2D983
and 2D984, and ``600 Series'' ECCNs. (1) In addition to the other
recordkeeping requirements set forth elsewhere in the EAR, exporters
are required to maintain records, as specified in this section, for any
items exported or reexported pursuant to License Exception RPL to
repair, replace, or service previously lawfully exported or reexported
items classified under ECCNs 2A983, 2A984, 2D983 and 2D984 or a ``600
Series'' ECCN. The following information must be maintained for each
such export or reexport transaction:
    (i) A description of the item replaced, repaired or serviced;
    (ii) The type of repair or service;
    (iii) Certification of the destruction or return of item replaced;
    (iv) Location of the item replaced, repaired or serviced;
    (v) The name and address of those who received the items for
replacement, repair, or service;
    (vi) Quantity of items shipped; and
    (vii) Country of ultimate destination.
    (2) Records maintained pursuant to this section may be requested at
any time by an appropriate BIS official as set forth in Sec.  762.7 of
the EAR. Records that must be included in the annual or semi-annual
reports of exports and reexports of ``600 Series'' items under the
authority of License Exception RPL are described in Sec.  743.4 and
Sec.  762.2(b)(4), (b)(47) and (b)(48).

0
23. Section 740.11 is revised to read as follows:

Sec.  740.11  Governments, International Organizations, International
Inspections under the Chemical Weapons Convention, and the
International Space Station (GOV).

    This License Exception authorizes exports and reexports for
international nuclear safeguards; U.S. government agencies or
personnel; agencies of cooperating governments; international
inspections under the Chemical Weapons Convention; and the
International Space Station.
    (a) International Safeguards. (1) Scope. The International Atomic
Energy Agency (IAEA) is an international organization that establishes
and administers safeguards, including Additional Protocols, designed to
ensure that special nuclear materials and other related nuclear
facilities, equipment, and material are not diverted from peaceful
purposes to non-peaceful purposes. European Atomic Energy Community
(Euratom) is an international organization of European countries with
headquarters in Luxembourg. Euratom establishes and administers
safeguards designed to ensure that special nuclear materials and other
related nuclear facilities, equipment, and material are not diverted
from peaceful purposes to non-peaceful purposes. This paragraph (a)
authorizes exports and reexports of commodities or software to the IAEA
and Euratom, and reexports by IAEA and Euratom for official
international safeguard use, as follows:
    (i) Commodities or software consigned to the IAEA at its
headquarters in Vienna, Austria or its field offices in Toronto,
Ontario, Canada or in Tokyo, Japan for official international
safeguards use.
    (ii) Commodities or software consigned to the Euratom Safeguards
Directorate in Luxembourg, Luxembourg for official international
safeguards use.
    (iii) Commodities or software consigned to IAEA or Euratom may be
reexported to any country for IAEA or Euratom international safeguards
use provided that IAEA or Euratom maintains control of or otherwise
safeguards the commodities or software and returns the commodities or
software to the locations described in paragraphs (a)(1)(i) and
(a)(1)(ii) of this section when they become obsolete, are no longer
required, or are replaced.
    (iv) Commodity or software shipments may be made by persons under
direct contract with IAEA or Euratom, or by Department of Energy
National Laboratories as directed by the Department of State or the
Department of Energy.
    (v) The monitoring functions of IAEA and Euratom are not subject to
the restrictions on prohibited safeguarded nuclear activities described
in Sec.  744.2(a)(3) of the EAR.
    (vi) When commodities or software originally consigned to IAEA or
Euratom are no longer in IAEA or Euratom official safeguards use, such
commodities may be disposed of by destruction or by reexport or
transfer in accordance with the EAR.
    (2) Restrictions. (i) Items on the Sensitive List (see Supplement
No. 6 to part 774 of the EAR) may not be exported, reexported, or
transferred (in-country) under this paragraph (a), except to the
countries listed in Country Group A:5 (See Supplement No.1 to part 740
of the EAR).
    (ii) Items on the Very Sensitive List (see Supplement No. 7 to part
774 of the EAR) may not be exported, reexported, or transferred (in-
country) under this paragraph (a).
    (iii) Encryption items controlled for EI reasons under ECCNs 5A002,
5D002, or 5E002 may not be exported, reexported, or transferred (in-
country) under this

paragraph (a). See Sec.  740.17 of the EAR (License Exception ENC) for
possible alternative license exception authorization.
    (iv) Without prior authorization from the Bureau of Industry and
Security, nationals of countries in Country Group E:1(see Supplement
No. 1 to this part) may not physically or computationally access
computers that have been enhanced by ``electronic assemblies,'' which
have been exported or reexported under License Exception GOV and have
been used to enhance such computers by aggregation of processors so
that the APP of the aggregation exceeds the APP parameter set forth in
ECCN 4A003.b.
    (v) ``600 series'' items may not be exported or reexported under
this paragraph (a), except to the countries listed in Country Group A:5
(see Supplement No.1 to this part).
    (b) United States Government. (1) Scope. The provisions of this
paragraph (b) authorize exports, reexports, and transfers (in-country)
to personnel and agencies of the U.S. Government and certain exports by
the Department of Defense. ``Agency of the U.S. Government'' includes
all civilian and military departments, branches, missions, government-
owned corporations, and other agencies of the U.S. Government, but does
not include such national agencies as the American Red Cross or
international organizations in which the United States participates
such as the Organization of American States. Therefore, shipments may
not be made to these non-governmental national or international
agencies, except as provided in paragraph (b)(2)(i) of this section for
U.S. representatives to these organizations.
    (2) Eligibility. (i) Items for personal use by personnel and
agencies of the U.S. Government. This provision is available for items
in quantities sufficient only for the personal use of members of the
U.S. Armed Forces or civilian personnel of the U.S. Government
(including U.S. representatives to public international organizations),
and their immediate families and household employees. Items for
personal use include household effects, food, beverages, and other
daily necessities.
    (ii) Exports, reexports, and transfers (in-country) made by or
consigned to a department or agency of the U.S. Government. This
paragraph authorizes exports, reexports, and transfers of items when
made by or consigned to a department or agency of the U.S. Government
solely for its official use or for carrying out any U.S. Government
program with foreign governments or international organizations that is
authorized by law and subject to control by the President by other
means. This paragraph does not authorize a department or agency of the
U.S. Government to make any export, reexport, or transfer that is
otherwise prohibited by other administrative provisions or by statute.
Contractor support personnel of a department or agency of the U.S.
Government are eligible for this authorization when in the performance
of their duties pursuant to the applicable contract or other official
duties. `Contractor support personnel' for the purpose of this
provision means those persons who provide administrative, managerial,
scientific or technical support under contract to a U.S. Government
department or agency (e.g., contractor employees of Federally Funded
Research Facilities or Systems Engineering and Technical Assistance
contractors). This authorization is not available when a department or
agency of the U.S. Government acts as a transmittal agent on behalf of
a non-U.S. Government person, either as a convenience or in
satisfaction of security requirements.
    (iii) Exports, reexports, and transfers (in-country) made for or on
behalf of a department or agency of the U.S. Government.
    (A) This paragraph authorizes exports, reexports, and transfers
(in-country) of items solely for use by a department or agency of the
U.S. Government, when:
    (1) The items are destined to a U.S. person; and
    (2) The item is exported, reexported, or transferred (in-country)
pursuant to a contract between the exporter and a department or agency
of the U.S. Government;
    (B) This paragraph authorizes exports, reexports, and transfers
(in-country) of items to implement or support any U.S. Government
cooperative program, project, agreement, or arrangement with a foreign
government or international organization or agency that is authorized
by law and subject to control by the President by other means, when:
    (1) The agreement is in force and in effect, or the arrangement is
in operation;
    (2) The exporter, reexporter, or transferor obtains a written
authorization from the Secretary or agency head of the U.S. Government
department or agency responsible for the program, agreement, or
arrangement, or his or her designee, authorizing the exporter,
reexporter, or transferor to use this license exception. The written
authorization must include the scope of items to be shipped under this
license exception; the end users and consignees of the items; and any
restrictions on the export, reexport, or transfer (in-country)
(including any restrictions on the foreign release of technology);
    (3) The exporter, reexporter, or transferor has a contract with a
department or agency of the U.S. Government for the provision of the
items in furtherance of the agreement, or arrangement; and
    (4) The items being exported, reexported, or transferred (in-
country) are not controlled for Chemical Weapons Convention (CW) or
proliferation of chemical and biological weapons (CB) reasons;
    (C) This paragraph authorizes the temporary export, reexport, or
transfer (in-country) of an item in support of any foreign assistance
or sales program authorized by law and subject to the control of the
President by other means, when:
    (1) The item is provided pursuant to a contract between the
exporter, reexporter, or transferor and a department or agency of the
U.S. Government; and
    (2) The exporter, reexporter, or transferor obtains a written
authorization from the Secretary or agency head of the U.S. Government
department or agency responsible for the program, or his or her
designee, authorizing the exporter, reexporter, or transferor to use
this license exception. The written authorization must include the
scope of items to be shipped under this license exception; the end
users and consignees of the items; and any restrictions on the export,
reexport, or transfer (in-country) (including any restrictions on the
foreign release of technology);
    (D) This paragraph authorizes the export, reexport, or transfer of
commodities or software at the direction of the U.S. Department of
Defense for an end use in support of an Acquisition and Cross Servicing
Agreement (ACSA), when:
    (1) The ACSA is between the U.S. Government and a foreign
government or an international organization and is in force and in
effect;
    (2) The exporter, reexporter, or transferor has a contract with the
department or agency of the U.S. government in furtherance of the ACSA;
and
    (3) The exporter, reexporter, or transferor obtains a written
authorization from the Secretary or agency head of the U.S. Government
department or agency responsible for the ACSA, or his or her designee,
authorizing the exporter, reexporter, or transferor to use this license
exception. The written authorization must include

the scope of items to be shipped under this license exception; the end-
users and consignees of the items; and any restrictions on the export,
reexport, or transfer (in-country);
    (E) This paragraph authorizes the export, reexport, or transfer
(in-country) of Government Furnished Equipment (GFE) made by a U.S.
Government contractor, when:
    (1) The GFE will not be provided to any foreign person;
    (2) The export, reexport, or transfer (in-country) is pursuant to a
contract with a department or agency of the U.S. Government; and
    (3) Shipment documents must include the following statement:
``Property of [insert U.S. Government department, agency, or service].
Property may not enter the trade of the country to which it is shipped.
Authorized under License Exception GOV. U.S. Government point of
contact: [Insert name and telephone number].''
    (F) Electronic Export Information. Electronic Export Information
(EEI) must be filed in the Automated Export System (AES) for any export
made pursuant to paragraph (b)(iii) of this section. The EEI must
identify License Exception GOV as the authority for the export and
indicate that the applicant has received the relevant documentation
from the contracting U.S. Government department, agency, or service.
The Internal Transaction Number assigned by AES must be properly
annotated on shipping documents (bill of lading, airway bill, other
transportation documents, or commercial invoice).
    (G) The exporter, reexporter, or transferor must obtain an
authorization, if required, before any item previously exported,
reexported, or transferred (in-country) under this paragraph is resold,
transferred, reexported, transshipped, or disposed of to an end user
for any end use, or to any destination other than as authorized by this
paragraph (e.g., property disposal of surplus items outside of the
United States), unless:
    (1) The transfer is pursuant to a grant, sale, lease, loan, or
cooperative project under the Arms Export Control Act or the Foreign
Assistance Act of 1961, as amended; or
    (2) The item has been destroyed or rendered useless beyond the
possibility of restoration.
    (iv) Items exported at the direction of the U.S. Department of
Defense. This paragraph authorizes items to be exported, reexported, or
transferred (in-country) pursuant to an official written request or
directive from the U.S. Department of Defense.
    (v) This paragraph authorizes items sold, leased, or loaned by the
U.S. Department of Defense to a foreign country or international
organization pursuant to the Arms Export Control Act or the Foreign
Assistance Act of 1961 when the items are delivered to representatives
of such a country or organization in the United States and exported,
reexported, or transferred on a military aircraft or naval vessel of
that government or organization or via the Defense Transportation
Service.
    (vi) This paragraph authorizes transfer of technology in
furtherance of a contract between the exporter and an agency of the
U.S. Government, if the contract provides for such technology and the
technology is not ``development'' or ``production'' technology for
``600 series'' items.
    (c) Cooperating Governments. (1) Scope. The provisions of this
paragraph (c) authorize exports reexports, and transfers (in-country)
of the items listed in paragraph (c)(2) of this section to agencies of
cooperating governments. ``Agency of a cooperating government''
includes all civilian and military departments, branches, missions, and
other governmental agencies of a cooperating national government.
Cooperating governments are the national governments of countries
listed in Country Group A:1 (see Supplement No. 1 to this part) and the
national governments of Argentina, Austria, Finland, Hong Kong,
Ireland, Korea (Republic of), New Zealand, Singapore, Sweden,
Switzerland and Taiwan.
    (2) Eligibility. (i) Items for official use within national
territory by agencies of cooperating governments. This license
exception is available for all items consigned to and for the official
use of any `agency of a cooperating government' within the territory of
any cooperating government, except items excluded by paragraph (c)(3)
of this section.
    (ii) Diplomatic and consular missions of a cooperating government.
This license exception is available for all items consigned to and for
the official use of a diplomatic or consular mission of a cooperating
government located in any country in Country Group B (see Supplement
No. 1 to this part), except items excluded by paragraph (c)(3) of this
section.
    (3) Exclusions. The following items may not be exported,
reexported, or transferred (in-country) under this paragraph (c):
    (i) Items on the Sensitive List (see Supplement No. 6 to part 774
of the EAR), except to the countries listed in Country Group A:5 (see
Supplement No.1 to this part);
    (ii) Items on the Very Sensitive List (see Supplement No. 7 to part
774 of the EAR);
    (iii) Encryption items controlled for EI reasons under ECCNs 5A002,
5D002, or 5E002 (see Sec.  740.17 of the EAR for License Exception
ENC);
    (iv) Regional stability items controlled under ECCNs 6A002.a.1.c,
6E001 ``technology'' according to the General Technology Note for the
``development'' of equipment in 6A002.a.1.c, and 6E002 ``technology''
according to the General Technology Note for the ``production'' of
equipment in 6A002.a.1.c.;
    (v) ``600 series'' items, except to the countries listed in Country
Group A:5 (see Supplement No. 1 to this part);
    (vi) Items controlled for nuclear nonproliferation (NP) reasons;
    (vii) Items listed as not eligible for License Exception STA in
Sec.  740.20(b)(2)(ii) of the EAR.
    (d) International inspections under the Chemical Weapons Convention
(CWC or Convention). (1) The Organization for the Prohibition of
Chemical Weapons (OPCW) is an international organization that
establishes and administers an inspection and verification regime under
the Convention designed to ensure that certain chemicals and related
facilities are not diverted from peaceful purposes to non-peaceful
purposes. This paragraph (d) authorizes exports and reexports to the
OPCW and exports and reexports by the OPCW for official international
inspection and verification use under the terms of the Convention as
follows:
    (i) Commodities and software consigned to the OPCW at its
headquarters in The Hague for official international OPCW use for the
monitoring and inspection functions set forth in the Convention, and
technology relating to the maintenance, repair, and operation of such
commodities and software. The OPCW must maintain ``effective control''
of such commodities, software and technology.
    (ii) Controlled technology relating to the training of the OPCW
inspectorate.
    (iii) Controlled technology relating to a CWC inspection site,
including technology released as a result of:
    (A) Visual inspection of U.S.-origin equipment or facilities by
foreign nationals of the inspection team;
    (B) Oral communication of controlled technology to foreign
nationals of the inspection team in the U.S. or abroad; and
    (C) The application to situations abroad of personal knowledge or
technical experience acquired in the U.S.

    (2) Exclusions. The following items may not be exported or
reexported under the provisions of this paragraph (d):
    (i) Inspection samples collected in the U.S. pursuant to the
Convention;
    (ii) Commodities and software that are no longer in OPCW official
use. Such items must be transferred in accordance with the EAR.
    (iii) ``600 series'' items, except to the countries listed in
Country Group A:5 (see Supplement No.1 to this part).
    (3) Confidentiality. The application of the provisions of this
paragraph (d) is subject to the condition that the confidentiality of
business information is strictly protected in accordance with
applicable provisions of the EAR and other U.S. laws regarding the use
and transfer of U.S. goods and services.
    (4) Restrictions. Without prior authorization from the Bureau of
Industry and Security, nationals of countries in Country Group E:1 (see
Supplement No. 1 to this part) may not physically or computationally
access computers that have been enhanced by ``electronic assemblies,''
which have been exported or reexported under License Exception GOV and
have been used to enhance such computers by aggregation of processors
so that the APP of the aggregation exceeds the APP parameter set forth
in ECCN 4A003.b.
    (e) International Space Station (ISS). (1) Scope. The ISS is a
research facility in a low-Earth orbit approximately 190 miles (350 km)
above the surface of the Earth. The ISS is a joint project among the
space agencies of the United States, Russia, Japan, Canada, Europe and
Italy. This paragraph (e) authorizes exports and reexports required on
short notice of certain commodities subject to the EAR that are
classified under ECCN 9A004 to launch sites for supply missions to the
ISS.
    (2) Eligible commodities. Any commodity subject to the EAR that is
classified under ECCN 9A004 and that is required for use on the ISS on
short notice.

    Note 1 to paragraph (e)(2):  This license exception is not
available for the export or reexport of ``parts,'' ``components,''
``accessories,'' and ``attachments'' to overseas manufacturers for
the purpose of incorporation into other items destined for the ISS.

    Note 2 to paragraph (e)(2): For purposes of this paragraph (e),
`short notice' means the exporter is required to have a commodity
manifested and at the scheduled launch site for hatch-closure (final
stowage) no more than forty-five (45) days from the time the
exporter or reexporter received complete documentation. `Complete
documentation' means the exporter or reexporter received the
technical description of the commodity and purpose for use of the
commodity on the ISS. `Hatch-closure (final stowage)' means the
final date specified by a launch provider by which items must be at
a specified location in a launch country in order to be included on
a mission to the ISS. The exporter or reexporter must receive the
notification to supply the commodity for use on the ISS in writing.
That notification must be kept in accordance with paragraph (e)(8)
of this section and the Recordkeeping requirements in part 762 of
the EAR.

    (3) Eligible destinations. Eligible destinations are France, Japan,
Kazakhstan, and Russia. To be eligible, a destination needs to have a
launch for a supply mission to the ISS scheduled by a country
participating in the ISS.
    (4) Requirement for commodities to be launched on an eligible space
launch vehicle (SLV). Only commodities that will be delivered to the
ISS using United States, Russian, ESA (French), or Japanese space
launch vehicles (SLVs) are eligible under this authorization.
Commodities to be delivered to the ISS using SLVs from any other
countries are excluded from this authorization.
    (5) Authorizations. (i) Authorization to retain commodity at or
near launch site for up to six months. If there are unexpected delays
in a launch schedule for reasons such as mechanical failures in a
launch vehicle or weather, commodities exported or reexported under
this paragraph (e) may be retained at or near the launch site for a
period of six (6) months from the time of initial export or reexport
before the commodities must be destroyed, returned to the exporter or
reexporter, or be the subject of an individually validated license
request submitted to BIS to authorize further disposition of the
commodities.
    (ii) Authorization to retain commodity abroad at launch country
beyond six months. If, after the commodity is exported or reexported
under this authorization, a delay occurs in the launch schedule that
would exceed the 6-month deadline in paragraph (e)(5)(i) of this
section, the exporter or reexporter or the person in control of the
commodities in the launch country may request a one-time 6-month
extension by submitting written notification to BIS requesting a 6-
month extension and noting the reason for the delay. If the requestor
is not contacted by BIS within 30 days from the date of the postmark of
the written notification and if the notification meets the requirements
of this subparagraph, the request is deemed granted. The request must
be sent to BIS at the address listed in part 748 of the EAR and should
include the name and address of the exporter or reexporter, the name
and address of the person who has control of the commodity, the date
the commodities were exported or reexported, a brief product
description, and the justification for the extension. To retain a
commodity abroad beyond the 6-month extension period, the exporter,
reexporter or person in control of the commodity must request
authorization by submitting a license application in accordance with
Sec. Sec.  748.1, 748.4 and 748.6 of the EAR to BIS 90 days prior to
the expiration of the 6-month extension period.
    (iii) Items not delivered to the ISS because of a failed launch. If
the commodities exported or reexported under this paragraph (e) of this
section are not delivered to the ISS because a failed launch causes the
destruction of the commodity prior to its being delivered, exporters
and reexporters must make note of the destruction of the commodities in
accordance with the recordkeeping requirements under paragraph
(e)(8)(ii) of this section and part 762 of the EAR.
    (6) Reexports to an alternate launch country. If a mechanical or
weather related issue causes a change from the scheduled launch country
to another foreign country after a commodity was exported or
reexported, then that commodity may be subsequently reexported to the
new scheduled launch country, provided all of the terms and conditions
of paragraph (e) of this section are met, along with any other
applicable EAR provisions. In such instances, the 6-month time
limitation described in paragraph (e)(5)(i) of this section would start
over again at the time of the subsequent reexport transaction. Note
that if the subsequent reexport may be made under the designation No
License Required (NLR) or pursuant to an authorization under the EAR, a
reexporter does not need to rely on the provisions contained in this
paragraph (e).
    (7) Eligible recipients. Only persons involved in the launch of
commodities to the ISS may receive and have access to commodities
exported or reexported pursuant to this paragraph (e), except that:
    (i) No commodities may be exported, reexported, or transferred (in-
country) under paragraph (e) to any national of an E:1 country (see
Supplement No. 1 to this part), and
    (ii) No person may receive commodities authorized under paragraph
(e) of this section who is subject to an end-user or end-use control
described in part 744 of the EAR, including the entity list in
Supplement No. 4 to part 744.

    (8) Recordkeeping requirements. Exporters and reexporters must
maintain records regarding exports or reexports made using this
paragraph (e) of this section as well as any other applicable
recordkeeping requirements under part 762 of the EAR.
    (i) Exporters and reexporters must retain a record of the initial
written notification they received requesting these commodities be
supplied on short notice for a supply mission to the ISS, including the
date the exporter or reexporter received complete documentation (i.e.,
the day on which the 45-day clock begins).
    (ii) Exporters and reexporters must maintain records of the date of
any exports or reexports made using this paragraph (e) and the date on
which the commodities were launched into space for delivery to the ISS.
If the commodities are not delivered to the ISS because of a failed
launch whereby the item is destroyed prior to being delivered to the
ISS, this must be noted for recordkeeping purposes.
    (iii) The return or destruction of defective or worn out parts or
components is not required. However, if defective or worn out parts or
components originally exported or reexported pursuant to this paragraph
(e) are returned from the ISS, then those parts and components may be
either: returned to the original country of export or reexport;
destroyed; or reexported or transferred (in-country) to a destination
that has been designated by NASA for conducting a review and analysis
of the defective or worn part or component. Documentation for this
activity must be kept for recordkeeping purposes. No commodities that
are subject to the EAR may be returned, under the provisions of this
paragraph, to a country listed in Country Group E:1 (see Supplement No.
1 to this part) or to any person if that person is subject to an end-
user or end-use control described in part 744 of the EAR. For purposes
of paragraph (e) of this section, a `defective or worn out' part or
component is a part or component that no longer performs its intended
function.

0
24. Section 740.13 is amended by adding a sentence to the end of
paragraph (a)(1), redesignating paragraph (f) as paragraph (h), and by
adding new paragraphs (f) and (g) to read as follows:

Sec.  740.13  Technology and Software--Unrestricted (TSU).

    (a) * * * This paragraph (a) authorizes training, provided the
training is limited to the operation, maintenance and repair technology
identified in this paragraph.
* * * * *
    (f) Release of technology and source code in the U.S. by U.S.
universities to their bona fide and full time regular employees. (1)
Scope. This paragraph authorizes the release in the United States of
``technology'' and source code that is subject to the EAR by U.S.
universities to foreign nationals who are their bona fide and full time
regular employees.
    (2) Eligible foreign nationals (i.e., bona fide and full time
regular employees of U.S. universities). This exception is only
available if:
    (i) The employee's permanent residence throughout the period of
employment is in the U.S.;
    (ii) The employee is not a national of a destination listed in
Country Group D:5 (see Supplement No. 1 to part 740 of the EAR); and
    (iii) The university informs the individual in writing that the
``technology'' or source code may not be transferred to other foreign
nationals without prior U.S. Government authorization. The obligation
not to transfer technology extends beyond the tenure of employment at
the university.
    (3) Regular employee. A regular employee means:
    (i) An individual permanently and directly employed by the
university; or
    (ii) An individual in a long-term contractual relationship with the
university where the individual works at the university's facilities;
works under the university's direction and control; works full time and
exclusively for the university; executes nondisclosure certifications
for the university; and where the staffing agency that has seconded the
individual has no role in the work the individual performs (other than
providing that individual for that work) and the staffing agency would
not have access to any controlled technology (other than where
specifically authorized by a license or where a license exception is
available).
    (4) Exclusions. (i) No ``technology'' or source code may be
released to a foreign national who is subject to a part 744 end-use or
end-user control or where the release would otherwise be inconsistent
with part 744; and
    (ii) No ``technology'' controlled for ``EI'' (encryption) reasons
or ``technology'' or source code controlled for ``MT'' (Missile
Technology) reasons may be released under this paragraph (f).
    (g) Copies of technology previously authorized for export to same
recipient. This paragraph authorizes the export, reexport, or transfer
(in-country) of copies of technology previously authorized for export,
reexport, or transfer (in-country) to the same recipient. This
paragraph also authorizes the export, reexport, or transfer (in-
country) of revised copies of such technology provided the following
three conditions are met:
    (1) The item that the technology pertains to is the identical item;
    (2) The revisions to the technology are solely editorial and do not
add to the content of technology previously exported, reexported, or
transferred (in-country) or authorized for export, reexport, or
transfer (in-country) to the same recipient; and
    (3) The exporter, reexporter, or transferor has no reason to
believe the same recipient has used the technology in violation of the
original authorization.
* * * * *

0
25. Section 740.20 is amended by:
0
a. Revising paragraph (a);
0
b. Removing the phrase ``destinations indicated in paragraph (c)(1) of
this section'' and adding in its place ``destinations indicated in
Country Group A:5 (See Supplement No.1 to this part)'' in paragraph
(b)(2)(vi);
0
c. Adding paragraph (b)(3);
0
d. Revising paragraphs (c)(1) and (2);
0
e. Adding three sentences immediately following the first sentence of
paragraph (d)(2);
0
f. Removing the word ``and'' that follows the semicolon at the end of
paragraph (d)(2)(v);
0
g. Adding paragraphs (d)(2)(vi), (d)(2)(vii)) and (g); and
0
h. Removing the phrase ``country listed in paragraph (c)(1) or (c)(2)
of this section'' and adding in its place ``country listed in Country
Group A:5 or A:6 (See Supplement No.1 to this part)'' in paragraph
(d)(4).
    The revisions and additions read as follows:

Sec.  740.20  License Exception Strategic Trade Authorization (STA).

    (a) Introduction. This section authorizes exports, reexports, and
transfers (in-country), including releases within a single country of
software source code and technology to foreign nationals, in lieu of a
license that would otherwise be required pursuant to part 742 of the
EAR.
    (b) * * *
    (3) Limitations on the Use of STA that are Specific to ``600
series'' Items. (i) License Exception STA may not be used for any ``600
series'' items identified in the relevant ECCN as not being eligible
for STA.

    (ii) License Exception STA may be used to export, reexport, and
transfer (in-country) ``600 series'' items to persons, whether non-
governmental or governmental, if they are in and, for natural persons,
nationals of a country listed in Country Group A:5 (See Supplement No.1
to part 740 of the EAR) or the United States and if:
    (A) The ultimate end user for such items is the armed forces,
police, paramilitary, law enforcement, customs, correctional, fire, or
a search and rescue agency of a government of one of the countries
listed in Country Group A:5, or the United States Government;
    (B) For the ``development,'' ``production,'' operation,
installation, maintenance, repair, overhaul, or refurbishing of an item
in one of the countries listed in Country Group A:5 or the United
States that will ultimately be used by any such government agencies,
the United States Government, or a person in the United States; or
    (C) The United States Government has issued a license that
authorizes the use of License Exception STA, the license is in effect,
and the consignee provides a copy of such authorization to the
exporter.
    (iii) License Exception STA may not be used to export, reexport, or
transfer (in-country) end items described in ECCN 9A610.a until after
BIS has approved their export under STA under the procedures set out in
Sec.  740.20(g).
    (iv) License Exception STA may not be used to export, reexport, or
transfer (in-country) ``600 series'' items if they are ``600 Series
Major Defense Equipment'' and the value of such items in the contract
requiring their export exceeds $25,000,000.
    (c) Authorizing paragraphs--(1) Multiple reasons for control.
Exports, reexports, and transfers (in-country) in which the only
applicable reason(s) for control is (are) national security (NS);
chemical or biological weapons (CB); nuclear nonproliferation (NP);
regional stability (RS); crime control (CC), and/or significant items
(SI) are authorized for destinations in or nationals of Country Group
A:5 (See Supplement No.1 to part 740 of the EAR).

    Note to paragraph (c)(1). License Exception STA under Sec.
740.20(c)(1) may be used to authorize the export, reexport, or
transfer (in-country) of ``600 series'' items only if the purchaser,
intermediate consignee, ultimate consignee, and end user have
previously been approved on a license issued by BIS or the
Directorate of Defense Trade Controls (DDTC), U.S. Department of
State.

    (2) Controls of lesser sensitivity. Exports, reexports and
transfers (in-country) in which the only applicable reason for control
is national security (NS) and the item being exported, reexported or
transferred (in-country) is not designated in the STA paragraph in the
License Exception section of the ECCN that lists the item are
authorized for destinations in or nationals of Country Group A:6 (See
Supplement No.1 to this part).
* * * * *
    (d) * * *
    (1) * * *
    (2) Prior consignee statement. * * * Paragraphs (d)(2)(i) through
(v) of this section are required for all transactions. In addition,
paragraph (d)(2)(vi) is required for all transactions in ``600 series''
items and paragraph (vii) of this section is required for transactions
in ``600 series'' items if the consignee is not the government of a
country listed in Country Group A:5 (See Supplement No. 1 to part 740
of the EAR).
* * * * *
    (vi) Understands that License Exception STA may be used to export,
reexport, and transfer (in-country) ``600 series'' items to persons,
whether non-governmental or governmental, only if they are in and, for
natural persons, nationals of a country listed in Country Group A:5
(See Supplement No.1 to part 740 of the EAR) or the United States and
if:
    (A) The ultimate end user for such items is the armed forces,
police, paramilitary, law enforcement, customs, correctional, fire, or
a search and rescue agency of a government of one of the countries
listed in Country Group A:5 or the United States Government;
    (B) For the ``development,'' ``production,'' operation
installation, maintenance, repair, overhaul, or refurbishing of an item
in one of the countries listed in Country Group A:5 or the United
States that will ultimately be used by any such government agencies,
the United States Government, or a person in the United States; or
    (C) A United States Government license authorizes the use of
License Exception STA, the license is in effect, and is attached to the
consignee statement.
    (vii) Agrees to permit a U.S. Government end-use check with respect
to the items.
* * * * *
    (g) License Exception STA eligibility requests for ``600 series''
end items. (1) Applicability. Any person may request License Exception
STA eligibility for aircraft described in ECCN 9A610.a.
    (2) Required information and manner of requests. Requests for
License Exception STA eligibility must be made via the BIS Simplified
Network Application Process-Redesign (SNAP-R) system unless BIS
authorizes submission via the paper BIS-748-P Multipurpose Application
form. For situations in which BIS 748-P submissions may be authorized,
see Sec.  748.1(d)(1). For required information specific to License
Exception STA eligibility requests, see Supplement No. 1 to part 748,
Blocks 5 and 6 and Supplement No. 2 to part 748, paragraph (w). In
SNAP-R the work type for these applications is ``Export.''
    (3) Timeline for USG review. The Departments of Commerce, Defense
and State will review License Exception STA eligibility requests in
accordance with the timelines set forth in Executive Order 12981 and
Sec.  750.4. If the License Exception STA request is approved, the
process outlined in paragraph (g)(5)(i) of this section is followed.
    (4) Review criteria. The Departments of Commerce, Defense and State
will determine whether the ``end item'' is eligible for this license
exception based on an assessment of whether it provides a critical
military or intelligence advantage to the United States or is otherwise
available in countries that are not regime partners or close allies. If
the ``end item'' does not provide a critical military or intelligence
advantage to the United States or is otherwise available in countries
that are not regime partners or close allies, the Departments will
determine that License Exception STA is available unless an overarching
foreign policy rationale for restricting STA availability can be
articulated. Consensus among the Departments is required in order for
an ``end item'' to be eligible for License Exception STA. Such
determinations are made by the departments' representatives to the
Advisory Committee on Export Policy (ACEP), or their designees.
    (5) Disposition of License Exception STA eligibility requests. (i)
Approvals. If the request for STA eligibility is approved, the
applicant will receive notification from BIS authorizing the use of the
additional License Exception STA for the specific end items requested.
This will be in the form of a notice generated by SNAP-R to the
applicant. Applicants who receive an approval notification may share it
with companies affiliated with them, such as a branch or distributor,
and may also take steps to make it public (e.g., on their Web site) if
the applicants so wish. In addition, BIS will add a description of the
approved end item in the relevant ECCN and in an online table posted on
the BIS Web site, which removes the restriction on the use of License
Exception STA for the end item identified in the approved request. BIS

will publish, as needed, a final rule adding this license exception
eligibility to the EAR for that ECCN entry or end item.
    (ii) Denials. If the STA eligibility request is not approved, the
applicant will receive written notification from BIS. This will be in
the form of a notice generated by SNAP-R to the applicant. Applicants
may re-submit STA eligibility requests at any time.

0
26. Supplement No. 1 to part 740, Country Group A is amended by:
0
a. Adding two columns A:5 and A:6 to the right of column A:4; and
0
b. Adding rows for: Albania, Israel, Singapore, and Taiwan, in
alphabetic order, to read as follows:

------------------------------------------------------------------------

------------------------------------------------------------------------
                                    *******         [A:5]         [A:6]
------------------------------------------------------------------------
Albania.......................      *******   ............            X
Argentina.....................      *******             X   ............
Australia.....................      *******             X   ............
Austria \1\...................      *******             X   ............
Belarus.......................      *******   ............  ............
Belgium.......................      *******             X   ............
Brazil........................      *******   ............  ............
Bulgaria......................      *******             X   ............
Canada........................      *******             X   ............
Croatia.......................      *******             X   ............
Cyprus........................      *******   ............  ............
Czech Republic................      *******             X   ............
Denmark.......................      *******             X   ............
Estonia.......................      *******             X   ............
Finland \1\...................      *******             X   ............
France........................      *******             X   ............
Germany.......................      *******             X   ............
Greece........................      *******             X   ............
Hong Kong \1\.................      *******   ............            X
Hungary.......................      *******             X   ............
Iceland.......................      *******             X   ............
India.........................      *******   ............            X
Ireland \1\...................      *******             X   ............
Israel........................      *******   ............            X
Italy.........................      *******             X   ............
Japan.........................      *******             X   ............
Kazakhstan....................      *******   ............  ............
Korea, South \1\..............      *******             X   ............
Latvia........................      *******             X   ............
Lithuania.....................      *******             X   ............
Luxembourg....................      *******             X   ............
Malta.........................      *******   ............            X
Netherlands...................      *******             X   ............
New Zealand \1\...............      *******             X   ............
Norway........................      *******             X   ............
Poland........................      *******             X   ............
Portugal......................      *******             X   ............
Romania.......................      *******             X   ............
Russia........................      *******   ............  ............
Singapore.....................      *******   ............            X
Slovakia......................      *******             X   ............
Slovenia......................      *******             X   ............
South Africa..................      *******   ............            X
Spain.........................      *******             X   ............
Sweden \1\....................      *******             X   ............
Switzerland \1\...............      *******             X   ............
Taiwan........................      *******   ............            X
Turkey........................      *******             X   ............
Ukraine.......................      *******   ............  ............
United Kingdom................      *******             X   ............
United States.................      *******   ............  ............
------------------------------------------------------------------------
\1\ Cooperating Countries.

0
27. Supplement No. 1 to part 740, Country Group D is amended by:
0
a. Adding column D:5 to the right of column D:4; and
0
b. Adding rows, in alphabetical order, for: Congo (Democratic Republic
of), Cote d'Ivoire, Cyprus, Eritrea, Fiji, Haiti, Liberia, Somalia, Sri
Lanka, Sudan, Venezuela, and Zimbabwe, to read as follows:

------------------------------------------------------------------------
                                                 *******
------------------------------------------------------------------------
                   Country                        *******         [D:5]
                                                              U.S. Arms
                                                              Embargoed
                                                                       Countries\1\
---------------------------------------------              -------------
Afghanistan.................................      *******             X
Armenia.....................................      *******   ............
Azerbaijan..................................      *******   ............
Bahrain.....................................      *******   ............
Belarus.....................................      *******             X
Burma.......................................      *******             X
Cambodia....................................      *******   ............
China (PRC).................................      *******             X
Congo, Democratic Republic of...............      *******             X

Cote d'Ivoire...............................      *******             X
Cuba........................................      *******             X
Cyprus......................................      *******             X
Egypt.......................................      *******   ............
Eritrea.....................................      *******             X
Fiji........................................      *******             X
Georgia.....................................      *******   ............
Haiti.......................................      *******             X
Iran........................................      *******             X
Iraq........................................      *******             X
Israel......................................      *******   ............
Jordan......................................      *******   ............
Kazakhstan..................................      *******   ............
Korea, North................................      *******             X
Kuwait......................................      *******   ............
Kyrgyzstan..................................      *******   ............
Laos........................................      *******   ............
Lebanon.....................................      *******             X
Liberia.....................................      *******             X
Libya.......................................      *******             X
Macau.......................................      *******   ............
Moldova.....................................      *******   ............
Mongolia....................................      *******   ............
Oman........................................      *******   ............
Pakistan....................................      *******   ............
Qatar.......................................      *******   ............
Russia......................................      *******   ............
Saudi Arabia................................      *******   ............
Somalia.....................................      *******             X
Sri Lanka...................................      *******             X
Sudan.......................................      *******             X
Syria.......................................      *******             X
Taiwan......................................      *******   ............
Tajikistan..................................      *******   ............
Turkmenistan................................      *******   ............
Ukraine.....................................      *******   ............
United Arab Emirates........................      *******   ............
Uzbekistan..................................      *******   ............
Venezuela...................................      *******             X
Vietnam.....................................      *******             X
Yemen.......................................      *******   ............
Zimbabwe....................................      *******             X
------------------------------------------------------------------------
\1\ Note to Country Group D:5: Countries subject to U.S. arms embargoes
  are identified by the State Department through notices published in
  the Federal Register. The list of arms embargoed destinations in this
  paragraph is drawn from 22 CFR Sec.   126.1 and State Department
  Federal Register notices related to arms embargoes (compiled at http://www.pmddtc.state.gov/embargoed_countries/index.html) and will be
  amended when the State Department publishes subsequent notices. If
  there are any discrepancies between the list of countries in this
  paragraph and the countries identified by the State Department as
  subject to a U.S. arms embargo (in the Federal Register), the State
  Department's list of countries subject to U.S. arms embargoes shall be
  controlling.

PART 742--[AMENDED]

0
28. The authority citation for part 742 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; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; 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 August 15, 2012, 77 FR 49699 (August 16, 2012); Notice of
November 1, 2012, 77 FR 66513 (November 5, 2012).

0
29. Section 742.4 is amended by revising paragraph (b)(1), to read as
follows:

Sec.  742.4  National security.

* * * * *
    (b) Licensing policy. (1)(i) The policy for national security
controlled items exported or reexported to any country except a country
in Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is
to approve applications unless there is a significant risk that the
items will be diverted to a country in Country Group D:1.
    (ii) When destined to a country listed in Country Group D:5 in
Supplement No. 1 to Part 740 of the EAR, however, items classified
under ``600 series'' ECCNs will also be reviewed consistent with United
States arms embargo policies (Sec.  126.1 of the ITAR).
* * * * *

0
30. Section 742.6 is amended by:
0
a. Revising paragraph (a)(1);
0
b. Removing the phrase ``9A018.a and .b, 9D018 (only software for the
``use'' of commodities in ECCN 9A018.a and .b), and 9E018 (only
technology for the ``development'', ``production'', or ``use'' of
commodities in 9A018.a and .b)'' and adding in its place ``9A018.b,
9D018 (only software for the ``use'' of commodities in ECCN 9A018.b),
and 9E018 (only technology for the ``development'', ``production'', or
``use'' of commodities in 9A018.b)'' at the end of paragraph (a)(4)(i);
and
0
c. Revising paragraph (b)(1).
    The revisions read as follows:

Sec.  742.6  Regional stability.

    (a) * * *
    (1) RS Column 1 license requirements in general. A license is
required for exports and reexports to all destinations, except Canada,
for all items in ECCNs on the CCL that include RS Column 1 in the
Country Chart column of the ``License Requirements'' section.
Transactions described in paragraphs (a)(2) or (3) of this section are
subject to the RS Column 1 license requirements set forth in those
paragraphs rather than the license requirements set forth in this
paragraph (a)(1).
* * * * *
    (b) Licensing policy. (1) Applications for exports and reexports of
``600 series'' items will be reviewed on a case-by-case basis to
determine whether the transaction is contrary to the national security
or foreign policy interests of the United States. Other applications
for exports and reexports described in paragraph (a)(1), (2), (6) or
(7) of this section will be reviewed on a case-by-case basis to
determine whether the export or reexport could contribute directly or
indirectly to any country's military capabilities in a manner that
would alter or destabilize a region's military balance contrary to the
foreign policy interests of the United States. Applications for
reexports of items described in paragraph (a)(3) of this section will
be reviewed applying the policies for similar commodities that are
subject to the ITAR. Applications for export or reexport of items
classified under any ``600 series'' ECCN requiring a license in
accordance with paragraph (a)(1) of this section will also be reviewed
consistent with United States arms embargo policies (Sec.  126.1 of the
ITAR) if destined to a country set forth in Country Group D:5 in
Supplement No. 1 to part 740 of the EAR. Applications for export or
reexport of ``parts,'' ``components,'' ``accessories,''
``attachments,'' ``software,'' or ``technology'' ``specially designed''
or otherwise required for the F-14 aircraft will generally be denied.

PART 743--SPECIAL REPORTING AND NOTIFICATION

0
31. The authority citation for part 743 is revised 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; E.O. 13637 of
March 8, 2013, 78 FR 16129 (March 13, 2013); Notice of August 15,
2012, 77 FR 49699 (August 16, 2012).

0
32. The heading for part 743 is revised to read as set forth above.

0
33. Section 743.1 is amended by adding two sentences at the end of
paragraph (a) introductory text and by revising paragraph (c) to read
as follows:

Sec.  743.1  Wassenaar Arrangement.

    (a) * * * This section is limited to the Wassenaar Arrangement
reporting requirements for items listed on the Wassenaar Arrangement's
Dual-Use list. For reporting requirements for conventional arms listed
on the Wassenaar Arrangement Munitions List that are subject to the EAR
(i.e., ``600 series'' ECCNs), see Sec.  743.4 of this part for
Wassenaar Arrangement and United Nations reporting requirements.
* * * * *
    (c) Items for which reports are required. You must submit reports
to BIS under the provisions of this section only for exports of items
on the

Sensitive List (see Supplement No. 6 to part 774 of the EAR).
* * * * *
0
34. Add Sec.  743.4 to read as follows:

Sec.  743.4  Conventional arms reporting.

    (a) Scope. This section outlines special reporting requirements for
exports of certain items listed on the Wassenaar Arrangement Munitions
List and the UN Register of Conventional Arms. Participating States of
the Wassenaar Arrangement exchange information every six months on
deliveries to non-participating states of conventional arms set forth
in the Wassenaar Arrangement's Basic Documents under Part II Guideline
and Procedures, including the Initial Elements, Appendix 3: Specific
Information Exchange on Arms Content by Category (at
www.wassenaar.org), derived from the categories of the UN Register of
Conventional Arms (at www.un.org/disarmament/convarms/Register/).
Similar, although not identical, information is also reported by the
U.S. Government to the United Nations on an annual basis. The reported
information should include the quantity and the name of the recipient
state and, except in the category of missiles and missile launchers,
details of model and type. Such reports must be submitted to BIS semi-
annually in accordance with the provisions of paragraph (f) of this
section for items identified in paragraph (c)(1) and annually for items
identified in paragraph (c)(2), and records of all exports subject to
the reporting requirements of this section must be kept in accordance
with part 762 of the EAR. This section does not require reports for
reexports or transfers (in-country).

    Note to paragraph (a): For purposes of Sec.  743.4, the term
``you'' has the same meaning as the term ``exporter'', as defined in
part 772 of the EAR.

    (b) Requirements. You must submit one electronic copy of each
report required under the provisions of this section and maintain
accurate supporting records (see Sec.  762.2(b) of the EAR) for all
exports of items specified in paragraph (c) of this section for the
following:
    (1) Exports authorized under License Exceptions LVS, TMP, RPL, STA,
or GOV (see part 740 of the EAR);
    (2) Exports authorized under the Special Comprehensive License
procedure (see part 752 of the EAR); and
    (3) Exports authorized under the Validated End User authorization
(see Sec.  748.15 of the EAR).
    (c) Items for which reports are required--. (1) Wassenaar
Arrangement reporting. You must submit reports to BIS under the
provisions of this section only for exports of items classified under
the following ECCNs:
    (i) [Reserved]
    (ii) [Reserved]
    (2) United Nations reporting. You must submit reports to BIS under
the provisions of this section only for exports of items classified
under the following ECCNs:
    (i) [Reserved]
    (ii) [Reserved]
    (d) Country Exceptions for Wassenaar Arrangement reporting. You
must report each export subject to the provisions of this section,
except for exports to Wassenaar member countries, identified in
Supplement No. 1 to part 743 for reports required under paragraph
(c)(1) of this section.
    (e) Information that must be included in each report. (1) Each
report submitted to BIS for items other than those identified in
paragraph (e)(2) of this section must include the following information
for each export during the time periods specified in paragraph (f) of
this section:
    (i) Export Control Classification Number and paragraph reference as
identified on the Commerce Control List;
    (ii) Number of units in the shipment; and

    Note to paragraph (e)(1)(ii): For exports of technology for
which reports are required under Sec.  743.1(c) of this section, the
number of units in the shipment should be reported as one (1) for
the initial export of the technology to a single ultimate consignee.
Additional exports of the technology must be reported only when the
type or scope of technology changes or exports are made to other
ultimate consignees.

    (iii) Country of ultimate destination.
    (f) Frequency and timing of reports -- (1) Semi-annual reports for
items identified in paragraph (c)(1) of this section. You must submit
reports subject to the provisions of this section semiannually. The
reports must be labeled with the exporting company's name and address
at the top of each page and must include for each such export all the
information specified in paragraph (e) of this section. The reports
shall cover exports made during six-month time periods from January 1
through June 30 and July 1 through December 31.
    (i) The first report must be submitted to and received by BIS no
later than 180 days after the effective date of the rule that revises
paragraph (c)(1) of this section to add the ECCN for the item being
reported. Thereafter, reports are due according to the provisions of
paragraphs (f)(2) and (f)(3) of this section.
    (ii) Reports for the reporting period ending June 30 must be
submitted to and received by BIS no later than August 1.
    (iii) Reports for the reporting period ending December 31 must be
submitted to and received by BIS no later than February 1.
    (2) Annual reports for items identified in paragraph (c)(2) of this
section. You must submit reports subject to the provisions of this
section annually. The reports must be labeled with the exporting
company's name and address at the top of each page and must include for
each such export all the information specified in paragraph (e) of this
section. The reports shall cover exports made during twelve month time
periods from January 1 through December 31.
    (i) The first report must be submitted to and received by BIS no
later than 180 days after the effective date of the rule that revises
paragraph (c)(1) of this section to add the ECCN for the item being
reported. Thereafter, reports are due according to the provisions of
paragraph (f)(2) of this section.
    (ii) Reports for the reporting period ending December 31 must be
submitted to and received by BIS no later than February 1.
    (g) Submission of reports. Information should be submitted in the
form of a spreadsheet and emailed to<EMAIL_ADDRESS>or
<EMAIL_ADDRESS>    (h) Contacts. General information concerning the Wassenaar
Arrangement and reporting obligations thereof is available from the
Office of National Security and Technology Transfer Controls, Tel.
(202) 482-0092, Fax:<PHONE_NUMBER>.

0
35. Section 743.5 is added to read as follows:

Sec.  743.5  Prior notifications to Congress of Exports of ``600 Series
Major Defense Equipment.''

    (a) General requirement. Applications to export items on the
Commerce Control List that are ``600 Series Major Defense Equipment''
will be notified to Congress as provided in this section before
licenses for such items are issued.
    (1) Exports of ``600 Series Major Defense Equipment'' to U.S.
Government end users under License Exception GOV (Sec.  740.11(b) of
the EAR) do not require such notification.
    (2) Exports of ``600 Series Major Defense Equipment'' that have
been or will be described in a notification filed by the U.S. State
Department under the Arms Export Control Act do not require such
notification by BIS.
    (b) BIS will notify Congress prior to issuing a license authorizing
the export

of items to a country outside the countries listed in Country Group A:5
(see Supplement No.1 to part 740 of the EAR) that are sold under a
contract that includes $14,000,000 or more of ``600 Series Major
Defense Equipment.''
    (c) BIS will notify Congress prior to issuing a license authorizing
the export of items to a country listed in Country Group A:5 (see
Supplement No.1 to part 740 of the EAR) that are sold under a contract
that includes $25,000,000 or more of ``600 Series Major Defense
Equipment.''
    (d) In addition to information required on the application, the
exporter must include a copy of the signed contract (including a
statement of the value of the ``600 Series Major Defense Equipment''
items to be exported under the contract) for any proposed export
described in paragraphs (b) or (c) of this section.
    (e) Address. Munitions Control Division at
<EMAIL_ADDRESS>
PART 744--[AMENDED]

0
36. The authority citation for 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; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; 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 January 19, 2012, 77 FR 3067
(January 20, 2012); Notice of August 15, 2012, 77 FR 49699 (August
16, 2012); Notice of September 11, 2012, 77 FR 56519 (September 12,
2012); Notice of November 1, 2012, 77 FR 66513 (November 5, 2012).

0
37. Section 744.17 is amended by revising the section heading and
paragraph (d) to read as follows:

Sec.  744.17  Restrictions on certain exports and reexports of general
purpose microprocessors for `military end uses' and to `military end
users.'

* * * * *
    (d) 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 (as set out on
the Wassenaar Arrangement Web site at http://www.wassenaar.org);
commodities classified under ECCNs ending in ``A018'' or under ``600
series'' ECCNs; or any commodity that is designed for the ``use,''
``development,'' ``production,'' or deployment of military items
described on the USML, the Wassenaar Arrangement Munitions List or
classified under ECCNs ending in ``A018'' or under ``600 series''
ECCNs. Supplement No. 1 of this part lists examples of `military end
use.'
* * * * *

0
38. Section 744.21 is amended by redesignating paragraphs (a), (a)(1)
and (a)(2) as paragraphs (a)(1), (a)(1)(i) and (a)(1)(ii), by adding a
new paragraph (a)(2), and by revising paragraph (f) to read as follows:

Sec.  744.21  Restrictions on certain `military end uses' in the
People's Republic of China (PRC).

    (a)(1) * * *
    (2) General prohibition. In addition to the license requirements
for ``600 series'' items specified on the Commerce Control List (CCL),
you may not export, reexport, or transfer any ``600 series'' item,
including .y items described in a ``600 series'' ECCN, to the PRC
without a license.
* * * * *
    (f) In this section, `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); incorporation into a
military item described on the Wassenaar Arrangement Munitions List (as
set out on the Wassenaar Arrangement Web site at http://www.wassenaar.org); incorporation into items classified under ECCNs
ending in ``A018'' or under ``600 series'' ECCNs; or for the ``use,''
``development,'' or ``production'' of military items described on the
USML or the Wassenaar Arrangement Munitions List, or items classified
under ECCNs ending in ``A018'' or under ``600 series'' ECCNs. * * *
* * * * *

PART 746--[AMENDED]

0
39. The authority citation for 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; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C.
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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; E.O.
13338, 69 FR 26751, 3 CFR 2004 Comp., p. 168; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899
(January 16, 2007); Notice of May 9, 2012, 77 FR 27559 (May 10,
2012); Notice of August 15, 2012, 77 FR 49699 (August 16, 2012).

0
40. Section 746.1 is amended by revising paragraph (b)(4) to read as
follows:

Sec.  746.1  Introduction.

* * * * *
    (b) * * *
    (4) You may not use any License Exception, other than License
Exception GOV, for items for personal or official use by personnel and
agencies of the U.S. Government or agencies of cooperating governments
as set forth in Sec.  740.11(b) of the EAR, to export or reexport items
with a UN reason for control to countries listed in paragraph (b)(2) of
this section. This paragraph does not apply to Iraq, which is governed
by Sec.  746.3(c) of this part; North Korea, which is governed by Sec.
746.4(c) of this part; or Iran, which is governed by Sec.  746.7(c) of
this part.

0
41. Section 746.3 is amended by revising paragraph (b)(2) to read as
follows:

Sec.  746.3  Iraq.

* * * * *
    (b) * * *
    (2) License applications for the export or reexport to Iraq or
transfer within Iraq of machine tools controlled for national security
(NS) or nuclear nonproliferation (NP) reasons, as well as for any items
controlled for crime control (CC) or United Nations (UN) reasons
(including items classified under ECCN 0A986) or ECCNs that end in the
number ``018'' or items classified under ``600 series'' ECCNs, 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. Exports of ``600 series''
items to the Government of Iraq will be reviewed under the policies set
forth for such items in Sec. Sec.  742.4(b) and 742.6(b) of the EAR.
* * * * *

PART 748--[AMENDED]

0
42. The authority citation for part 748 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 15, 2012, 77
FR 49699 (August 16, 2012).

0
43. In Sec.  748.1, paragraph (d) introductory text is amended by
revising the first sentence to read as follows:

Sec.  748.1  General Provisions.

* * * * *

    (d) Electronic Filing Required. All export and reexport license
applications (other than Special Comprehensive License or Special Iraq
Reconstruction License applications), encryption registrations, License
Exception AGR notifications, requests to authorize use of License
Exception STA for ``600 series'' end items (which are currently
submitted as export license applications) and classification requests
and their accompanying documents must be filed via BIS's Simplified
Network Application Processing system (SNAP-R), unless BIS authorizes
submission via the paper forms BIS 748-P (Multipurpose Application
Form), BIS-748P-A (Item Appendix) and BIS-748P-B, (End-User Appendix).
* * *
* * * * *
0
44. Section 748.3 is amended by adding paragraph (e) to read as
follows:

Sec.  748.3  Classification requests, advisory opinions, and encryption
registrations.

* * * * *
    (e) Classification requests to confirm that a ``part,''
``component,'' ``accessory,'' ``attachment,'' or ``software'' is not
``specially designed.'' (1) Scope. If you have a ``part,''
``component,'' ``accessory,'' ``attachment,'' or ``software'' that is
``specially designed'' on the basis of paragraph (a)(1) or (2) of the
``specially designed'' definition in Sec.  772.1 of the EAR, you may
submit a request in accordance with the procedures in Sec.  748.1 to
confirm that the item is not ``specially designed'' provided you meet
the following criteria:
    (i) The ``part,'' ``component,'' ``accessory,'' ``attachment,'' or
``software'' does not meet the criteria of exclusion paragraph (b)(3)
of the ``specially designed'' definition, but would meet the criteria
if the minor changes in form or fit were determined to be insignificant
by the U.S. Government.
    (ii) The performance capabilities of the ``part,'' ``component,''
``accessory,'' ``attachment,'' or ``software'' are the same as those of
a ``part,'' ``component,'' ``accessory,'' ``attachment,'' or
``software'' that would meet the criteria of exclusion paragraph (b)(3)
of the definition of ``specially designed'' in Sec.  772.1 of the EAR.
    (2) Information to be provided. Applicants wishing to submit a
CCATS requesting confirmation that a ``part,'' ``component,''
``accessory,'' ``attachment,'' or ``software'' is not ``specially
designed'' must submit classification requests in accordance with the
procedures in Sec.  748.1 and general provisions regarding submitting
classification requests in Sec.  748.3(b). In addition, applicants must
submit additional information identified in this paragraph (e)(2).
    (i) The classification request must indicate in Block 24 or in a
separate PDF attachment included with the CCATS submission that the
``part,'' ``component,'' ``accessory,'' ``attachment'' or ``software''
would meet the criteria in paragraph (e)(1)(i) and (ii) of this
section;
    (ii) A detailed explanation must be provided regarding all changes
in form and fit; and
    (iii) A rationale must be provided that explains why such changes
in form and fit should be treated as minor or insignificant in terms of
their role in the performance capabilities of the enumerated item.
    (3) U.S. Government Review. Commodity classification requests
submitted pursuant to Sec.  748.3(e) are reviewed by the Departments of
Commerce, State and Defense. A consensus determination is required to
confirm that a ``part,'' ``component,'' ``accessory,'' ``attachment,''
or ``software'' is not ``specially designed'' on the basis of this
paragraph. The interagency review process will ensure U.S. national
security and foreign policy interests are evaluated prior to any
confirmation pursuant to Sec.  748.3(e). The interagency review will
consider on a case-by-case basis whether a particular ``part,''
``component,'' ``accessory,'' ``attachment,'' or ``software'' is
``specially designed'' taking into account all the following:
    (i) The insignificance of the changes in form and fit;
    (ii) The overall role of the ``part,'' ``component,''
``accessory,'' ``attachment,'' or ``software'' in the performance
capabilities of the enumerated item that it is used in or with;
    (iii) How substantively common it is to the other ``part,''
``component,'' ``accessory,'' ``attachment,'' or ``software'' that
would meet the paragraph (b)(3) criteria;
    (iv) Whether such a confirmation would be consistent with U.S.
Government multilateral export control regime commitments; and
    (v) Any other criteria that may be relevant in determining whether
the ``part,'' ``component,'' ``accessory,'' ``attachment,'' or
``software'' is ``specially designed,'' including an evaluation of how
such a confirmation may affect U.S. national security and foreign
policy interests.
    (4) CCATS response. The BIS response to the CCATS request will
reflect the interagency consensus determination and the response will
be made in accordance with the procedures in Sec. Sec.  748.1 and
748.3(b). In addition, the BIS response will indicate one of the
following:
    (i) The ``part,'' ``component,'' ``accessory,'' ``attachment,'' or
``software'' is not ``specially designed'' on the basis of being within
the scope of paragraph (b)(3) because the changes in form and fit have
been determined by the U.S. Government to be minor or insignificant. In
such cases, the new classification, which may be EAR99 or in another
ECCN entry that does not use ``specially designed,'' will be provided
as part of the BIS response;''
    (ii) The request under Sec.  748.3(e) has been denied and the
``part,'' ``component,'' ``accessory,'' ``attachment,'' or ``software''
continues to be classified under a ``specially designed'' `catch-all'
(see the definition of ``specially designed'' in Sec.  772.1 of the
EAR). The response will also include a determination regarding where
the ``specially designed'' ``part,'' ``component,'' ``accessory,''
``attachment,'' or ``software'' is classified on the CCL; or
    (iii) Returned without action (RWA) because insufficient
information was provided or information was not provided in a timely
fashion. These requests will be reviewed closely, and they will likely
require additional follow up questions of applicants, so responding to
such requests in a timely fashion will be an important part of the
process to ensure such requests are considered by the U.S. Government.

    Note to paragraph (e): Although these requests for confirmation
that an item is not ``specially designed'' are also reviewed by the
Departments of State and Defense, similar to Sec.  748.3(b)(3), the
public is reminded that neither the BIS classification nor the CCATS
number may be relied upon or cited as evidence that the U.S.
Government has determined that the ``parts,'' ``components,''
``accessories,'' ``attachments'' and ``software'' described in the
commodity classification determination or a release made from
``specially designed'' pursuant to Sec.  748.3(e) are subject to the
EAR (see Sec.  734.3 of the EAR).

0
45. Section 748.8 is amended by adding paragraphs (w) and (x) to read
as follows:

Sec.  748.8  Unique application and submission requirements.

* * * * *
    (w) License Exception STA eligibility requests for ``600 series''
end items.
    (x) License application for ``600 series'' item that is equivalent
to a transaction previously approved under an ITAR license or other
approval.

0
46. Supplement No. 1 to part 748 (BIS-748P, BIS-748P-A: Item Appendix,
and BIS-748P-B: End-User Appendix; Multipurpose Application
Instructions) is amended by:
0
a. Adding a sentence to the end of Block 5;
0
b. Adding a sentence to the end of Block 6; and
0
c. Adding five sentences to the end of Block 24, to read as follows:

Supplement No. 1 to Part 748--Item Appendix, and BIS-748P-B: End-User
Appendix; Multipurpose Application Instructions

* * * * *
    Block 5: * * *
    If you are submitting a License Exception STA eligibility
request pursuant to Sec.  740.20(g), mark the box labeled ``Export''
with an +X) and then proceed to Block 6 of this supplement for
instructions specific to such requests.
    Block 6: * * *
    Mark the ``Other'' box with an (X) and insert the phrase ``STA
request'' for the description of the support document to submit a
request for License Exception STA eligibility pursuant to Sec.
740.20(g). (See Supplement No. 2 to part 748 under paragraph (w) for
unique application and submission requirements for License Exception
STA eligibility requests described under this Block 6.)
* * * * *

Block 24: Additional Information

    This Block should be completed if your application includes a
``600 series'' item that is equivalent to a transaction previously
approved under an ITAR license or other approval. Enter the previous
State license number or other approval identifier in Block 24 of the
BIS license application. If more than one previous State license
number or other approval identifier is applicable, then enter the
most recent one. Only those license applications where the
particulars of the EAR license application are equivalent as
previously authorized under the ITAR license or other approval in
regard to the description of the item (including the item's
function, performance capabilities, form and fit), purchaser,
ultimate consignee and end users on the license will receive full
consideration under this paragraph, which may result in a quicker
processing time. The classification of the ``600 series'' item in
question will no longer be the same because the item would no longer
be ``subject to the ITAR,'' but all other aspects of the description
of the item must be the same in order to be reviewed under this
expedited process under paragraph (x)of Supplement No. 2 to part 748
of the EAR.4.)
* * * * *

0
47. Supplement No. 2 to part 748 (Unique Application and Submission
Requirements) is amended by adding paragraphs (w) and (x) to read as
follows:

Supplement No. 2 to Part 748--Unique Application and Submission
Requirements

* * * * *
    (w) License Exception STA eligibility requests for ``600
series'' end items. To request a License Exception STA eligibility
requests for ``600 series'' end items pursuant to Sec.  740.20(g),
you must mark an (X) in the ``Export'' box in Block 5 (Type of
Application) block. You must mark an (X) in the ``Other'' box and
insert the phrase ``STA request'' '' in Block 6 (Documents submitted
with application) block. You must include the specific ``600
Series'' ECCN in Block 22. In addition to the ECCN, you will need to
provide sufficient information for the U.S. Government to make a
determination as to STA eligibility. This will require you to submit
more than merely a description of the end item. In particular, you
will need to provide supporting information for why you believe that
the end item does not, for example, provide a critical military or
intelligence advantage to the United States or is available in
countries that are not regime partners or close allies. You will
also need to provide information regarding whether and, if so, how
the end item is controlled by the export control laws and
regulations of close allies and regime partners, if known. If you
are not able to provide some of the information described above, the
U.S. Government will still evaluate the request, including using
resources and information that may only be available to the U.S.
Government. However, when submitting such requests you are
encouraged to provide as much information as you can based on the
criteria noted above to assist the U.S. Government in evaluating
these License Exception STA eligibility requests. In addition, you
should provide BIS with the text you would propose BIS use in
describing the end item in the appropriate ``600 series'' ECCN and
the online table referenced in Sec.  740.20(g)(5)(i) in anticipation
that the request may be approved pursuant to Sec.  740.20(g). You
may submit additional information that you believe is relevant to
the U.S. Government in reviewing the License Exception STA
eligibility request as part of that support document or as an
additional separate support document attachment to the license
application.
    (x) License application for a ``600 series'' item that is
equivalent to a transaction previously approved under an ITAR
license or other license authority. To request that the U.S.
Government review of a license application for a ``600 series'' item
also take into consideration a previously approved ITAR license or
other approval, applicants must also include the State license
number or other approval identifier in Block 24 of the BIS license
application (See the instructions in Supplement No. 1 to part 748
under Block 24).

    Note to paragraph (x): License applications submitted under
paragraph (x) will still be reviewed in accordance with license
review procedures and timelines identified in part 750, including
Sec. Sec.  750.3 and 750.4. Applicants are advised that including a
previously approved State license or other approval may have no
effect on the license review process since each application is
reviewed on its own merits at the time of submission. However, in
some cases, previous licensing history may result in license
applications being reviewed more quickly.

 PART 750--[AMENDED]

0
48. The authority citation for 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; E.O. 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013);
Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May
16, 2003; Notice of August 15, 2012, 77 FR 49699 (August 16, 2012).

0
49. Section 750.4 is amended by adding paragraph (b)(7) to read as
follows:

Sec.  750.4  Procedures for processing license applications.

* * * * *
    (b) * * *
    (7) Congressional Notification. Congressional notification,
including any consultations prior to notification, prior to the
issuance of an authorization to export when notification is required by
Sec.  743.5 of the EAR.
0
50. Section 750.7 is amended by adding paragraph (c)(1)(ix) and
revising paragraphs (g) introductory text and (g)(1) introductory text
to read as follows:

Sec.  750.7  Issuance of licenses.

    (c) * * *
    (1) * * *
    (ix) Direct exports, reexports, or transfers (in-country) to and
among approved end users on a license, provided those end users are
listed by name and location on such license and the license does not
contain any conditions specific to the ultimate consignee that cannot
be complied with by the end user, such as a reporting requirement that
must be made by the ultimate consignee. Reexports and transfers (in-
country) among approved end users may be further limited by license
conditions.
* * * * *
    (g) License validity period. Licenses involving the export or
reexport of items will generally have a four-year validity period,
unless a different validity period has been requested and specifically
approved by BIS or is otherwise specified on the license at the time
that it is issued. Exceptions from the four-year validity period
include license applications for items controlled for

short supply reasons, which will be limited to a 12-month validity
period and license applications reviewed and approved as an
``emergency'' (see Sec.  748.4(h) of the EAR). Emergency licenses will
expire no later than the last day of the calendar month following the
month in which the emergency license is issued. The expiration date
will be clearly stated on the face of the license. If the expiration
date falls on a legal holiday (Federal or State), the validity period
is automatically extended to midnight of the first business day
following the expiration date.
    (1) Extended validity period. BIS will consider granting a validity
period exceeding 4 years on a case-by-case basis when extenuating
circumstances warrant such an extension. Requests for such extensions
may be made at the time of application or after the license has been
issued and it is still valid. BIS will not approve changes regarding
other aspects of the license, such as the parties to the transaction
and the countries of ultimate destination. An extended validity period
will generally be granted where, for example, the transaction is
related to a multi-year project; when the period corresponds to the
duration of a manufacturing license agreement, technical assistance
agreement, warehouse and distribution agreement, or license issued
under the International Traffic in Arms Regulations; when production
lead time will not permit an export or reexport during the original
validity period of the license; when an unforeseen emergency prevents
shipment within the 4-year validity of the license; or for other
similar circumstances.
* * * * *

PART 756--[AMENDED]

0
51. The authority citation for part 756 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
15, 2012, 77 FR 49699 (August 16, 2012).

0
52. Section 756.1 is amended by adding paragraph (a)(4) to read as
follows:

Sec.  756.1  Introduction.

    (a) * * *
    (4) A decision on whether License Exception STA is available for
``600 series'' ``end items'' pursuant to Sec.  740.20(g).
* * * * *

PART 758--[AMENDED]

0
53. The authority citation for 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
15, 2012, 77 FR 49699 (August 16, 2012).

0
54. Section 758.1 is amended by revising the section heading,
redesignating paragraphs (b)(3) through (5) as paragraphs (b)(5)
through (7), and by adding new paragraphs (b)(3) and (4) to read as
follows:

Sec.  758.1  The Automated Export System (AES) record.

* * * * *
    (b) * * *
    (3) For all exports of ``600 series'' items enumerated in
paragraphs .a through .x of a ``600 series'' ECCN regardless of value
or destination, including exports to Canada;
    (4) For all exports under License Exception Strategic Trade
Authorization (STA);
* * * * *

0
55. Section 758.2 is amended by adding paragraph (c)(4) to read as
follows:

Sec.  758.2  Automated Export System (AES).

* * * * *
    (c) * * *
    (4) Exports are made under License Exception Strategic Trade
Authorization (STA); are made under Authorization Validated End User
(VEU); or are of ``600 series'' items.

0
56. Section 758.5 is amended by revising paragraphs (a), (b), (c), and
(d) to read as follows:

Sec.  758.5  Conformity of documents and unloading of items.

    (a) Purpose. The purpose of this section is to prevent items
licensed for export from being diverted while in transit or thereafter.
It also sets forth the duties of the parties when the items are
unloaded in a country other than that of the ultimate consignee or end
user as stated on the export license.
    (b) Conformity of documents. When a license is issued by BIS, the
information entered on related export control documents (e.g., the AES
record, bill of lading or air waybill) must be consistent with the
license.
    (c) Issuance of the bill of lading or air waybill. (1) Ports in the
country of the ultimate consignee or end user. No person may issue a
bill of lading or air waybill that provides for delivery of licensed
items to any foreign port located outside the country of an
intermediate consignee, ultimate consignee, or end user named on the
BIS license and in the AES record.
    (2) Optional ports of unloading. (i) Licensed items. No person may
issue a bill of lading or air waybill that provides for delivery of
licensed items to optional ports of unloading unless all the optional
ports are within the country of ultimate destination or are included on
the BIS license and in the AES record.
    (ii) Unlicensed items. For shipments of items that do not require a
license, the exporter may designate optional ports of unloading in AES
record and on other export control documents, so long as the optional
ports are in countries to which the items could also have been exported
without a license.
    (d) Delivery of items. No person may deliver items to any country
other than the country of an intermediate consignee, ultimate
consignee, or end user named on the BIS license and AES record without
prior written authorization from BIS, except for reasons beyond the
control of the carrier (such as acts of God, perils of the sea, damage
to the carrier, strikes, war, political disturbances or insurrection).
* * * * *

0
57. Section 758.6 is revised to read as follows:

Sec.  758.6  Destination control statement and other information
furnished to consignees.

    (a) General requirement. The Destination Control Statement (DCS)
must be entered on the invoice and on the bill of lading, air waybill,
or other export control document that accompanies the shipment from its
point of origin in the United States to the ultimate consignee or end-
user abroad. The person responsible for preparation of those documents
is responsible for entry of the DCS. The DCS is required for all
exports from the United States of items on the Commerce Control List
that are not classified as EAR99, unless the export may be made under
License Exception BAG or GFT (see part 740 of the EAR). At a minimum,
the DCS must state: ``These commodities, technology, or software were
exported from the United States in accordance with the Export
Administration Regulations. Diversion contrary to U.S. law is
prohibited.''
    (b) Additional requirement for ``600 series'' items. In addition to
the DCS as required in paragraph (a) of this section, the ECCN for each
``600 Series'' item being exported must be printed on the invoice and
on the bill of lading, air waybill, or other export control document
that accompanies the shipment from its point of origin in the United
States to the ultimate consignee or end-user abroad.

PART 762--[AMENDED]

0
58. 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
15, 2012, 77 FR 49699 (August 16, 2012).

0
59. Section 762.2 is amended by:
0
a. Revising paragraphs (b)(5), (7), (10), and (13);
0
b. Removing the ``and'' at the end of the paragraph (b)(48);
0
c. Removing the period at the end of paragraph (b)(49) and adding a
semi-colon in its place; and
0
d. Adding paragraphs (b)(50) and (51).
    The revisions and additions read as follows:

Sec.  762.2  Records to be retained.

* * * * *
    (b) * * *
    (5) Sec.  740.9(a)(3)(i)(B), Tools of trade: Temporary exports,
reexports, and transfers (in country) of technology by U.S. persons
(TMP);
* * * * *
    (7) Sec.  740.11(b)(2)(iii) and (iv), Exports, reexports and
transfers (in-country) made for or on behalf of a department or agency
of the U.S. Government and Items exported at the direction of the U.S.
Department of Defense (GOV);
* * * * *
    (10) Sec.  740.20(g), Responses to License Exception STA
eligibility requests for ``600 series'' end items (STA);
* * * * *
    (13) Sec.  743.4(c)(1) and (c)(2), Conventional arms reporting;
* * * * *
    (50) Sec.  772.2, ``Specially designed'' definition, note to
paragraphs (b)(4), (b)(5), and (b)(6); and
    (51) Sec.  740.20, note to paragraph (c)(1), License Exception STA
prior approval on a BIS or DDTC license (STA).

PART 764--[AMENDED]

0
60. The authority citation for part 764 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
15, 2012, 77 FR 49699 (August 16, 2012).

Supplement No. 1 to Part 764 [Amended]

0
61. Supplement No. 1 to part 764 is amended by removing the penultimate
paragraph.

PART 770--[AMENDED]

0
62. The authority citation for part 770 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
15, 2012, 77 FR 49699 (August 16, 2012).

Sec.  770.2  [Amended]

0
63. Section 770.2 is amended by removing and reserving paragraphs (i)
and (j).

PART 772--[AMENDED]

0
64. 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
15, 2012, 77 FR 49699 (August 16, 2012).

0
65. Section 772.1 is amended by:
0
a. Revising the definitions of ``dual use,'' ``military commodity,''
and ``specially designed;'' and
0
b. Adding, in alphabetical order, the following twelve definitions for
the terms ``600 series,'' ``600 Series Major Defense Equipment'' or
``MDE,'' ``accessories,'' ``attachments,'' ``build-to-print
technology,'' ``component,'' ``end item,'' ``equipment,''
``facilities,'' ``material,'' ``part,'' and ``system''.
    The revisions and additions read as follows:

Sec.  772.1  Definitions of terms as used in the Export Administration
Regulations (EAR).

* * * * *
    600 series. ECCNs in the ``xY6zz'' format on the Commerce Control
List (CCL) that control items on the CCL that were previously
controlled on the U.S. Munitions List or that are covered by the
Wassenaar Arrangement Munitions List (WAML). The ``6'' indicates the
entry is a munitions entry on the CCL. The ``x'' represents the CCL
category and ``Y'' the CCL product group. The ``600 series''
constitutes the munitions ECCNs within the larger CCL. 600 Series Major
Defense Equipment or MDE. Any item listed in ECCN 9A610.a, 9A619.a,
9A619.b or 9A619.c, having a nonrecurring research and development cost
of more than $50,000,000 or a total production cost of more than
$200,000,000.

    Note to ``600 Series Major Defense Equipment'': For the most
current list of MDE, see Appendix 1, (Nonrecurring Cost Recoupment
Charges for Major Defense Equipment) to DoD 5105.38-M, ``Security
Assistance Management Manual (SAMM),'' dated 04/30/2012, available
online at http://www.dsca.osd.mil/samm/ESAMM/Appendix01.htm.
Accessories. These are associated items for any ``component,'' ``end
item,'' or ``system,'' and which are not necessary for their
operation, but which enhance their usefulness or effectiveness. For
example, for a riding lawnmower, ``accessories'' and ``attachments''
will include the bag to capture the cut grass, and a canopy to
protect the operator from the sun and rain. For purposes of this
definition, ``accessories'' and ``attachments'' are the same.

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    Attachments. These are associated items for any ``component,''
``end item,'' or ``system,'' and which are not necessary for their
operation, but which enhance their usefulness or effectiveness. For
example, for a riding lawnmower, ``accessories'' and ``attachments''
will include the bag to capture the cut grass, and a canopy to protect
the operator from the sun and rain. For purposes of this definition,
``attachments'' and ``accessories'' are the same.
* * * * *
    Build-to-Print technology. (1) This is ``production''
``technology'' that is sufficient for an inherently capable end user to
produce or repair a commodity from engineering drawings without:
    (i) Revealing ``development'' ``technology,'' such as design
methodology, engineering analysis, detailed process or manufacturing
know-how;
    (ii) Revealing the production engineering or process improvement
aspect of the ``technology;'' or
    (iii) Requiring assistance from the provider of the technology to
produce or repair the commodity.
    (2) Acceptance, test, or inspection criteria pertaining to the
commodity at issue is included within the scope of ``build-to-print
technology'' only if it is the minimum necessary to verify that the
commodity is acceptable.
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    Component. This is an item that is useful only when used in
conjunction with an ``end item.'' ``Components'' are also commonly
referred to as assemblies. For purposes of this definition an assembly
and a ``component'' are the same. There are two types of
``components'': ``Major components'' and ``minor components.'' A
``major component'' includes any assembled element which forms a
portion of an ``end item'' without which the ``end item'' is
inoperable. For example, for an automobile, ``components'' will include
the engine, transmission, and battery. If you do not have all those
items, the automobile will not function, or function as effectively. A
``minor component'' includes any assembled element of a ``major
component.'' ``Components'' consist of ``parts.'' References in the CCL
to ``components'' include both ``major components'' and ``minor
components.''
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