29. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 3 Electronics, Export Control Classification Number (ECCN)
3C005 is added after ECCN 3C004, to read as follows:

    3C005 Silicon carbide (SiC) wafers having a resistivity of more
than 10,000 ohm-cm.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 2.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Exceptions

    LVS: $3000
    GBS: Yes
    CIV: Yes

List of Items Controlled

    Unit: $ value
    Related Controls: See ECCN 3E001 for related development and
production technology, and ECCN 3B991.b.1.b for related production
equipment.
    Related Definition: N/A
    Items:
    The list of items controlled is contained in the ECCN heading.

0
30. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 3 Electronics, Export Control Classification Number (ECCN)
3C992 is amended by revising the ``heading'', to read as follows:

    3C992 Positive resists designed for semiconductor lithography
specially adjusted (optimized) for use at wavelengths between 370
and 245 nm.
* * * * *

0
31. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 3 Electronics, Export Control Classification Number (ECCN)
3E001 is amended revising the License Requirements section and the
related controls and items paragraphs in the List of Items Controlled
section, to read as follows:

    3E001 ``Technology'' according to the General Technology Note
for the ``development'' or ``production'' of equipment or materials
controlled by 3A (except 3A292, 3A980, 3A981, 3A991 or 3A992), 3B
(except 3B991 or 3B992) or 3C (except 3C992).

License Requirements

    Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for items    NS Column 1.
 controlled by 3A001, 3A002, 3B001,
 3B002, or 3C001 to 3C005.
MT applies to ``technology'' for          MT Column 1.
 equipment controlled by 3A001 or 3A101
 for MT reasons.
NP applies to ``technology'' for          NP Column 1.
 equipment controlled by 3A001, 3A201,
 or 3A225 to 3A233 for NP reasons.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Note: See Sec.  743.1 of the EAR for
reporting requirements for exports under License Exceptions.
* * * * *

List of Items Controlled

    Unit: * * *
    Related Controls: (1.) See also 3E101 and 3E201. (2.)
``Technology'' according to the General Technology Note for the
``development'' or ``production'' of the following commodities is
under the export licensing authority of the Department of State,
Directorate of Defense Trade Controls (22 CFR part 121): (a) When
operating at frequencies higher than 31 GHz and ``space qualified'':
helix tubes (traveling wave tubes (TWT)) defined in 3A001.b.1.a.4.c;
microwave solid state amplifiers defined in 3A001.b.4.b; microwave
``assemblies'' defined in 3A001.b.6; or traveling wave tube
amplifiers (TWTA) defined in 3A001.b.8; (b) ``Space qualified'' and
radiation hardened photovoltaic arrays defined in 3A001.e.1.c (i.e.,
not having silicon cells or single, dual or triple junction solar
cells that have gallium arsenide as one of the junctions), and
spacecraft/satellite solar concentrators and batteries; and (c)
``Space qualified'' atomic frequency standards defined in 3A002.g.2.
    Related Definition: * * *
    Items:
    The list of items controlled is contained in the ECCN heading.

    Note 1: 3E001 does not control ``technology'' for the
``production'' of equipment or components controlled by 3A003.

    Note 2: 3E001 does not control ``technology'' for the
``development'' or ``production'' of integrated circuits controlled
by 3A001.a.3 to a.12, having all of the following:

    (a) Using ``technology'' of 0.5 [mu]m or more; and
    (b) Not incorporating multi-layer structures.
    Technical Note: The term multi-layer structures in Note 2 of
3E001 does not include devices incorporating a maximum of three
metal layers and three polysilicon layers.

0
32. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 3 Electronics, Export Control Classification Number (ECCN)
3E002 is amended by revising the ``Heading'' and the License
Requirements section, the License Exceptions section, and the ``items''
paragraph in the List of Items Controlled section, to read as follows:

    3E002 ``Technology'' according to the General Technology Note
other than that controlled in 3E001 for the ``development'' or
``production'' of a ``microprocessor microcircuit'', ``micro-
computer microcircuit'' and microcontroller microcircuit core,
having an arithmetic logic unit with an access width of 32 bits or
more and any of the following features or characteristics (see List
of Items Controlled).
* * * * *

License Exceptions

    CIV: Yes, for deemed exports, as described in Sec.
734.2(b)(2)(ii) of the EAR, of ``technology'' for the
``development'' or ``production'' of general purpose microprocessors
with a vector processor unit with operand length of 64-bit or less,
64-bit floating operations not exceeding 32 GFLOPS, or 16-bit or
more floating-point operations not exceeding 32 GMACS (billions of
16-bit fixed-point multiply-accumulate operations per second).
Deemed exports under License Exception CIV are subject to a Foreign
National Review (FNR) requirement, see Sec.  740.5 of the EAR for
more information about the FNR. License Exception CIV does not apply
to ECCN 3E002 technology also required for the development or
production of items controlled under ECCNs beginning with 3A, 3B, or
3C, or to ECCN 3E002 technology also controlled under ECCN 3E003.
    TSR: Yes

List of Items Controlled

    Unit: * * *
    Related Controls: * * *
    Related Definitions: * * *
    Items:
    a. A vector processor unit designed to perform more than two
calculations on floating-point vectors (one dimensional arrays of
32-bit or larger numbers) simultaneously;
    Technical Note: A vector processing unit is a processor element
with built-in instructions that perform multiple calculations on
floating-point vectors (one-dimensional arrays of 32-bit or larger
numbers) simultaneously, having at least one vector arithmetic logic
unit.
    b. Designed to perform more than two 64-bit or larger floating-
point operation results per cycle; or
    c. Designed to perform more than four 16-bit fixed-point
multiply-accumulate results per cycle (e.g., digital manipulation of
analog information that has been previously converted into digital
form, also known as digital signal processing).

    Note: 3E002.c does not control technology for multimedia
extensions.

Notes:
    1. 3E002 does not control ``technology'' for the ``development''
or ``production'' of microprocessor cores, having all of the
following:
    a. Using ``technology'' at or above 0.130 [mu]m; and
    b. Incorporating multi-layer structures with five or fewer metal
layers.
    2. 3E002 includes ``technology'' for digital signal processors
and digital array processors.

0
33. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 3 Electronics is amended by removing the section entitled
``Information on How to Calculate ``composite Theoretical Performance
(``CTP'')'' that follows EAR99.

0
34. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 5 Telecommunications and ``Information Security'', Part I
Telecommunications, Export Control Classification Number (ECCN) 5A001
is amended by
0
a. Revising the License Requirements section, to read as set forth
below;
0
b. Revising the introductory text to paragraph b in the ``items''
paragraph of the List of Items Controlled section, as set forth below;
and
0
c. Revising paragraphs b.2 and g in the ``items'' paragraph of the List
of Items Controlled section, to read as follows:

    5A001 Telecommunications systems, equipment, and components, as
follows (see List of Items Controlled).

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to 5A001.a, and .e...........  NS Column 1.
NS applies to 5A001.b, .c, .d, .f, .g...  NS Column 2.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: See Sec.  743.1 of the EAR for
reporting requirements for exports under License Exceptions.
* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    b. Telecommunication systems and equipment, and specially
designed components and accessories therefor, having any of the
following characteristics, functions or features:
    b.1 * * *
    b.2. Being radio equipment operating in the 1.5 MHz to 87.5 MHz
band and having all of the following characteristics:
    b.2.a. Automatically predicting and selecting frequencies and
``total digital transfer rates'' per channel to optimize the
transmission; and
    b.2.b. Incorporating a linear power amplifier configuration
having a capability to support multiple signals simultaneously at an
output power of 1 kW or more in the frequency range of 1.5 MHz or
more but less than 30 MHz, or 250 W or more in the

frequency range of 30 MHz or more but not exceeding 87.5 MHz, over
an ``instantaneous bandwidth'' of one octave or more and with an
output harmonic and distortion content of better than -80 dB;
* * * * *
    g. Passive Coherent Location systems or equipment specially
designed for detecting and tracking moving objects by measuring
reflections of ambient radio frequency emissions, supplied by non-
radar transmitters.
    Technical Note: Non-radar transmitters may include commercial
radio, television or cellular telecommunications base stations.

    Note: 5A001.g. does not control:

    a. Radio-astronomical equipment;
    b. Systems or equipment that require any radio transmission from
the target.
* * * * *

0
35. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 5 Telecommunications and ``Information Security'', Part 1
Telecommunications, Export Control Classification Number (ECCN) 5A991
is amended by revising paragraph b.7. in the ``items'' paragraph of the
List of Items Controlled section, to read as follows:

    5A991 Telecommunication equipment, not controlled by 5A001.
* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    b. * * *
    b.7. Being radio equipment employing any of the following:
    b.7.a. Quadrature-amplitude-modulation (QAM) techniques above
level 4 if the ``total digital transfer rate'' exceeds 8.5 Mbit/s;
    b.7.b. QAM techniques above level 16 if the ``total digital
transfer rate'' is equal to or less than 8.5 Mbit/s;
    b.7.c. Other digital modulation techniques and having a
``spectral efficiency'' exceeding 3 bit/s/Hz; or
    b.7.d. Operating in the 1.5 MHz to 87.5 MHz band and
incorporating adaptive techniques providing more than 15 dB
suppression of an interfering signal.

    Notes: 1. 5A991.b.7 does not control equipment specially
designed to be integrated and operated in any satellite system for
civil use.

    2. 5A991.b.7 does not control radio relay equipment for
operation in an ITU allocated band:
    a. Having any of the following:
    a.1. Not exceeding 960 MHz; or
    a.2. With a ``total digital transfer rate'' not exceeding 8.5
Mbit/s; and
    b. Having a ``spectral efficiency'' not exceeding 4 bit/s/Hz.
* * * * *

0
36. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 5 Telecommunications and ``Information Security'', Part 2
Information Security, Export Control Classification Number (ECCN) 5E001
is amended by adding a new paragraph c.4.c in the Items paragraph of
the List of Items Controlled section, to read as follows:

    5E001 ``Technology'', (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    c. * * *
    c.4. * * *
Note: * * *
    c.4.c. Operating in the 1.5 MHz to 87.5 MHz band and
incorporating adaptive techniques providing more than 15 dB
suppression of an interfering signal; or
* * * * *

0
37. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6A002
is amended by revising the License Requirements section, the Unit
paragraph in the List of Items Controlled section, and paragraphs
a.3.d.1 and a.3.e in the Items paragraph of the List of Items
Controlled section, to read as follows:

    6A002 Optical sensors.

License Requirements

    Reason for Control: NS, MT, CC, RS, AT, UN

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 2.
MT applies to optical detectors in        MT Column 1.
 6A002.a.1, a.3, or .e that are
 specially designed or modified to
 protect ``missiles'' against nuclear
 effects (e.g., Electromagnetic Pulse
 (EMP), X-rays, combined blast and
 thermal effects), and usable for
 ``missiles''.
RS applies to 6A002.a.1, a.2, a.3         RS Column 1.
 (except a.3.d.2.a and a.3.e for lead
 selenide based focal plane arrays
 (FPAs)), .c, and .e.
CC applies to police-model infrared       CC Column 1.
 viewers in 6A002.c.
AT applies to entire entry..............  AT Column 1.
UN applies to 6A002.a.1, a.2, a.3 and c.  Iraq, North Korea, and Rwanda.
------------------------------------------------------------------------

    License Requirement Notes: See Sec.  743.1 of the EAR for
reporting requirements for exports under License Exceptions.
* * * * *

List of Items Controlled

    Unit: Equipment in number; components in $ value
* * * * *
    Items:
    a. * * *
    a.3. * * *
    a.3.d. * * *
    a.3.d.1. Individual elements with a peak response in the
wavelength range exceeding 1,200 nm but not exceeding 3,000 nm; and
* * * * *
    a.3.e. Non-``space-qualified'' linear (1-dimensional) ``focal
plane arrays'', having individual elements with a peak response in
the wavelength range exceeding 3,000 nm but not exceeding 30,000 nm.
* * * * *

0
38. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6A004
is amended by:
0
a. Revising the Units, Related Controls and Related Definition
paragraphs in the List of Items Controlled section, as set forth below;
0
b. Adding single quotes around the term ``Aspheric optical elements''
in paragraph e in the Items paragraph of the List of Items Controlled
section;
0
c. Removing and reserving Technical Note 1 that appears after paragraph
e.3 in the Items paragraph of the List of Items Controlled section; and
0
d. Removing the Note Bene that reads ``N.B.: For aspheric optical
elements specially designed for lithographic equipment, see 3B001.'',
which appears at the end of the Items paragraph in the List of Items
Controlled section.

    6A004 Optics.
* * * * *

List of Items Controlled

    Unit: Equipment in number; components in $ value.
    Related Controls: (1) For optical mirrors or ``aspheric optical
elements'' specially designed for lithography equipment, see ECCN
3B001. (2) ``Space qualified'' components for optical systems
defined in 6A004.c and optical control equipment defined in
6A004.d.1 are subject to the export licensing authority of the
Department of

State, Directorate of Defense Trade Controls (22 CFR part 121). (3)
See also 6A994.
    Related Definitions: An ``aspheric optical element'' is any
element used in an optical system whose imaging surface or surfaces
are designed to depart from the shape of an ideal sphere.
* * * * *

0
39 . In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6A005
is revised, to read as follows:

    6A005 ``Lasers'' (other than those described in 0B001.g.5 or
.h.6), components and optical equipment, as follows (see List of
Items Controlled).

License Requirements

    Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 2.
NP applies to ``lasers'' controlled by    NP Column 1.
 6A005.a.2, a.4, b.2.b, b.3.a, b.4.b,
 b.6.b., c.1.b, c.2.b, d.3.c, and d.4.c,
 as described in the following License
 Requirements Note.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    License Requirements Note: NP controls apply to the following
``lasers'' controlled by 6A005:
    (a) Pulsed excimer ``lasers'' controlled by 6A005.d.4.c having
all of the following characteristics:
    (1) Operating at wavelengths between 240 and 360 nm;
    (2) A repetition rate > 250 Hz; and
    (3) An average output power > 500 W;
    (b) Copper vapor ``lasers'' controlled by 6A005.b.4.b having all
of the following characteristics:
    (1) Operating at wavelengths between 500 and 600 nm; and
    (2) An average output power >= 40 W;
    (c) Pulsed carbon dioxide ``lasers'' controlled by 6A005.d.3.c
(except industrial CO2 lasers used in applications such
as cutting and welding), having all of the following
characteristics:
    (1) Operating at wavelengths between 9,000 and 11,000 nm;
    (2)A repetition rate > 250 Hz;
    (3) An average output power > 2.5kW; and
    (4) A pulse width <  200ns;
    (d) Argon ion ``lasers'' controlled by 6A005.a.2 having all of
the following characteristics:
    (1) Operating at wavelengths between 400 and 515 nm; and
    (2) An average output power >= 50 W;
    (e) Alexandrite ``lasers'' controlled by 6A005.c.2.b having all
of the following characteristics:
    (1) Operating at wavelengths between 720 and 800 nm;
    (2) A bandwidth < = 0.005 nm;
    (3) A repetition rate > 125 Hz; and
    (4) Average output power > 30 W;
    (f) Pulse-excited, Q-switched neodymium-doped (other than glass)
``lasers'' controlled by 6A005.b.6.b having all of the following
characteristics:
    (1) An output wavelength exceeding 1,000 nm, but not exceeding
1,100 nm;
    (2) A pulse duration equal to or more than 1 ns; and
    (3) A single-transverse mode output having an average power
exceeding 40 W or a multiple-transverse mode output having an
average power exceeding 50 W;
    (g) Neodymium-doped (other than glass) ``lasers'' controlled by
6A005.b.2, b.3, or b.4, having all of the following characteristics:
    (1) Incorporating frequency doubling for output wavelength
between 500 and 550 nm; and
    (2) Average output power > 40 W;
    (h) Tunable pulsed single-mode dye laser oscillators controlled
by 6A005.c.1.b and 6A005.c.2.b having all of the following
characteristics:
    (1) Operating at wavelengths between 300 nm and 800 nm;
    (2) An average output power greater than 1 W;
    (3) A repetition rate greater than 1 kHz; and
    (4) Pulse width less than 100 ns;
    (i) Tunable pulsed dye laser amplifiers and oscillators
controlled by 6A005.c.1.b and 6A005.c.2.b having all of the
following characteristics:
    (1) Operating at wavelengths between 300 nm and 800 nm;
    (2) An average output power greater than 30 W;
    (3) A repetition rate greater than 1 kHz; and
    (4) Pulse width less than 100 ns;

    Note: NP controls do not apply to single mode oscillators.

License Exceptions

    LVS: N/A for NP items $3000 for all other items
    GBS: Yes, except 6A005.a.2, a.4, b.2.b, b.3.a, b.4.b, b.6.b,
c.1.b, c.2.b, d.3.c, and d.4.c, which meets the parameters for NP
controls set forth in the License Requirements Note.
    CIV: Yes, except 6A005.a.2, a.4, b.3.a, b.2.b, b.3.a, b.4.b,
b.6.b, c.1.b, c.2.b, d.3.c, and d.4.c, which meets the parameters
for NP controls set forth in the License Requirements Note.

List of Items Controlled

    Unit: Equipment in number; components and accessories in $ value
    Related Controls: (1) See ECCN 6D001 for ``software'' for items
controlled under this entry. (2) See ECCNs 6E001 (``development''),
6E002 (``production''), and 6E201 (``use'') for technology for items
controlled under this entry. (3) Also see ECCNs 6A205 and 6A995. (4)
See ECCN 3B001 for excimer ``lasers'' specially designed for
lithography equipment. (5) ``Lasers'' specially designed or prepared
for use in isotope separation are subject to the export licensing
authority of the Nuclear Regulatory Commission (see 10 CFR part
110). (6) Shared aperture optical elements, capable of operating in
``super-high power laser'' applications, and ``lasers'' specifically
designed, modified, or configured for military application are
subject to the export licensing authority of the U.S. Department of
State, Directorate of Defense Trade Controls (see 22 CFR part 121).
    Related Definitions: `Wall-plug efficiency' is defined as the
ratio of laser output power (or ``average output power'') to total
electrical input power required to operate the ``laser'', including
the power supply/conditioning and thermal conditioning/heat
exchanger.
    Items:

Notes:
    1. Pulsed ``lasers'' include those that run in a continuous wave
(CW) mode with pulses superimposed.
    2. Eximer, semiconductor, chemical, CO, CO2, and non-
repetitive pulsed Nd:glass ``lasers'' are only specified in 6A005.d.
    3. 6A005 includes fiber ``lasers''.
    4. The control status of ``lasers'' incorporating frequency
conversion (i.e., wavelength change) by means other than one
``laser'' pumping another ``laser'' is determined by applying the
control parameters for both the output of the source ``laser'' and
the frequency-converted optical output.
    5. 6A005 does not control the following ``lasers'':
    a. Ruby with output energy below 20 J;
    b. Nitrogen;
    c. Krypton.
    a. Non-``tunable'' continuous wave ``(CW) lasers'', having any
of the following:
    a.1. An output wavelength less than 150 nm with an output power
exceeding 1W;
    a.2. An output wavelength of 150 nm or more but not exceeding
520 nm and having an output power exceeding 30 W;

    Note: 6A005.a.2 does not control Argon ``lasers'' having an
output power equal to or less than 50 W.

    a.3. An output wavelength exceeding 520 nm but not exceeding 540
nm and having any of the following:
    a.3.a. A single transverse mode output having an output power
exceeding 50 W; or
    a.3.b. A multiple transverse mode output having an output power
exceeding 150 W;
    a.4. An output wavelength exceeding 540 nm but not exceeding 800
nm and having an output power exceeding 30 W;
    a.5. An output wavelength exceeding 800 nm but not exceeding 975
nm and having any of the following:
    a.5.a. A single transverse mode output having an output power
exceeding 50 W; or
    a.5.b. A multiple transverse mode output having an output power
exceeding 80 W;

    a.6. An output wavelength exceeding 975 nm but not exceeding
1,150 nm and having any of the following;
    a.6.a. A single transverse mode output having any of the
following:
    a.6.a.1. A ``wall-plug efficiency'' exceeding 12% and an output
power exceeding 100 W; or
    a.6.a.2. An output power exceeding 150 W; or
    a.6.b. A multiple transverse mode output having any of the
following:
    a.6.b.1. A ``wall-plug efficiency'' exceeding 18% and an output
power exceeding 500 W; or
    a.6.b.2. An output power exceeding 2 kW;

    Note: 6A005.a.6.b does not control multiple transverse mode,
industrial ``lasers'' with output power exceeding 2 kW and not
exceeding 6 kW with a total mass greater than 1,200 kg. For the
purpose of this note, total mass includes all components required to
operate the ``laser'', e.g., ``laser'', power supply, heat
exchanger, but excludes external optics for beam conditioning and/or
delivery.

    a.7. An output wavelength exceeding 1,150 nm but not exceeding
1,555 nm and having any of the following:
    a.7.a. A single transverse mode having an output power exceeding
50 W; or
    a.7.b. A multiple transverse mode having an output power
exceeding 80 W; or
    a.8. An output wavelength exceeding 1,555 nm and having an
output power exceeding 1 W.
    b. Non-``tunable'' ``pulsed lasers'', having any of the
following;
    b.1. An output wavelength less than 150 nm and having any of the
following:
    b.1.a. An output energy exceeding 50 mJ per pulse and a ``peak
power'' exceeding 1 W; or
    b.1.b. An ``average output power'' exceeding 1 W;
    b.2. An output wavelength of 150 nm or more but not exceeding
520 nm and having any of the following:
    b.2.a. An output energy exceeding 1.5 J per pulse and a ``peak
power'' exceeding 30 W; or
    b.2.b. An ``average output power'' exceeding 30 W;

    Note: 6A005.b.2.b does not control Argon ``lasers'' having an
``average output power'' equal to or less than 50 W.

    b.3. An output wavelength exceeding 520 nm, but not exceeding
540 nm and having any of the following:
    b.3.a. A single transverse mode output having any of the
following:
    b.3.a.1. An output energy exceeding 1.5 J per pulse and a ``peak
power'' exceeding 50 W; or
    b.3.a.2. An ``average output power'' exceeding 50 W; or
    b.3.b. A multiple transverse mode output having any of the
following:
    b.3.b.1. An output energy exceeding 1.5 J per pulse and a ``peak
power'' exceeding 150 W; or
    b.3.b.2. An ``average output power'' exceeding 150 W;
    b.4. An output wavelength exceeding 540 nm but not exceeding 800
nm and having any of the following:
    b.4.a. An output energy exceeding 1.5 J per pulse and a ``peak
power'' exceeding 30 W; or
    b.4.b. An ``average output power'' exceeding 30 W;
    b.5. An output wavelength exceeding 800 nm but not exceeding 975
nm and having any of the following:
    b.5.a. A ``pulse duration'' not exceeding 1 [mu]s and having any
of the following:
    b.5.a.1. An output energy exceeding 0.5 J per pulse and a ``peak
power'' exceeding 50 W;
    b.5.a.2. A single transverse mode output having an ``average
output power'' exceeding 20 W; or
    b.5.a.3. A multiple transverse mode output having an ``average
output power'' exceeding 50 W; or
    b.5.b. A ``pulse duration'' exceeding 1 [mu]s and having any of
the following:
    b.5.b.1. An output energy exceeding 2 J per pulse and a ``peak
power'' exceeding 50 W;
    b.5.b.2. A single transverse mode output having an ``average
output power'' exceeding 50 W; or
    b.5.b.3. A multiple transverse mode output having an ``average
output power'' exceeding 80 W.
    b.6. An output wavelength exceeding 975 nm but not exceeding
1,150 nm and having any of the following:
    b.6.a. A ``pulse duration'' of less than 1 [mu]s and having any
of the following:
    b.6.a.1. An output ``peak power'' exceeding 5 GW per pulse;
    b.6.a.2. An ``average output power'' exceeding 10 W; or
    b.6.a.3. An output energy exceeding 0.1 J per pulse;
    b.6.b. A ``pulse duration'' exceeding 1 ns but not exceeding 1
[mu]s, and having any of the following:
    b.6.b.1. A single transverse mode output having any of the
following:
    b.6.b.1.a. A ``peak power'' exceeding 100 MW;
    b.6.b.1.b. An ``average output power'' exceeding 20 W limited by
design to a maximum pulse repetition frequency less than or equal to
1 kHz;
    b.6.b.1.c. A `wall-plug efficiency' exceeding 12% and an
``average output power'' exceeding 100 W and capable of operating at
a pulse repetition frequency greater than 1 kHz;
    b.6.b.1.d. An ``average output power'' exceeding 150 W and
capable of operating at a pulse repetition frequency greater than 1
kHz; or
    b.6.b.1.e. An output energy exceeding 2 J per pulse;
    b.6.b.2. A multiple transverse mode output having any of the
following:
    b.6.b.2.a. A ``peak power'' exceeding 400 MW;
    b.6.b.2.b. A `wall-plug efficiency' exceeding 18% and an
``average output power'' exceeding 500 W;
    b.6.b.2.c. An ``average output power'' exceeding 2 kW; or
    b.6.b.2.d. An output energy exceeding 4 J per pulse; or
    b.6.c. A ``pulse duration'' exceeding 1 [mu]s and having any of
the following:
    b.6.c.1. A single transverse mode output having any of the
following:
    b.6.c.1.a. A ``peak power'' exceeding 500 kW;
    b.6.c.1.b. A 'wall-plug efficiency' exceeding 12% and an
``average output power'' exceeding 100 W; or
    b.6.c.1.c. An ``average output power'' exceeding 150 W; or
    b.6.c.2. A multiple transverse mode output having any of the
following:
    b.6.c.2.a. A ``peak power'' exceeding 1 MW;
    b.6.c.2.b. A `wall-plug efficiency' exceeding 18% and an
``average output power'' exceeding 500 W; or
    b.6.c.2.c. An ``average output power'' exceeding 2 kW;
    b.7. An output wavelength exceeding 1,150 nm but not exceeding
1,555 nm and having any of the following:
    b.7.a. A ``pulse duration'' not exceeding 1 [mu]s and having any
of the following:
    b.7.a.1. An output energy exceeding 0.5 J per pulse and a ``peak
power'' exceeding 50 W;
    b.7.a.2. A single transverse mode output having an ``average
output power'' exceeding 20 W; or
    b.7.a.3. A multiple transverse mode output having an ``average
output power'' exceeding 50 W; or
    b.7.b. A ``pulse duration'' exceeding 1 [mu]s and having any of
the following:
    b.7.b.1. An output energy exceeding 2 J per pulse and a ``peak
power'' exceeding 50 W;
    b.7.b.2. A single transverse mode output having an ``average
output power'' exceeding 50 W; or
    b.7.b.3. A multiple transverse mode output having an ``average
output power'' exceeding 80 W; or
    b.8. An output wavelength exceeding 1,555 nm and having any of
the following:
    b.8.a. An output energy exceeding 100 mJ per pulse and a ``peak
power'' exceeding 1 W; or
    b.8.b. An ``average output power'' exceeding 1 W;
    c. ``Tunable'' lasers, having any of the following:

    Note: 6A005.c includes titanium-sapphire (Ti:
Al2O3), thulium-YAG (Tm: YAG), thulium-YSGG
(Tm:YSGG), alexandrite (Cr:BeAl204), color
center ``lasers'', dye ``lasers'', and liquid ``lasers''.

    c.1. An output wavelength less than 600 nm and having any of the
following:
    c.1.a. An output energy exceeding 50 mJ per pulse and a ``peak
power'' exceeding 1 W; or
    c.1.b. An average or CW output power exceeding 1W;
    c.2. An output wavelength of 600 nm or more but not exceeding
1,400 nm and having any of the following:
    c.2.a. An output energy exceeding 1 J per pulse and a ``peak
power'' exceeding 20 W; or
    c.2.b. An average or CW output power exceeding 20 W; or
    c.3. An output wavelength exceeding 1,400 nm and having any of
the following:
    c.3.a. An output energy exceeding 50 mJ per pulse and a ``peak
power'' exceeding 1 W; or
    c.3.b. An average or CW output power exceeding 1 W;

    d. Other ``lasers'', not controlled in 6A005.a., 6A005.b, or
6A005.c, as follows:
    d.1. Semiconductor ``lasers'', as follows:

Notes:
    1. 6A005.d.1 includes semiconductor ``lasers'' having optical
output connectors (e.g., fiber optic pigtails).
    2. The control status of semiconductor ``lasers'' specially
designed for other equipment is determined by the control status of
the other equipment.

    d.1.a. Individual single-transverse mode semiconductor
``lasers'', having any of the following:
    d.1.a.1. A wavelength equal to or less than 1,510 nm and having
an average or CW output power exceeding 1.5 W; or
    d.1.a.2. A wavelength greater than 1,510 nm, and having an
average or CW output power exceeding 500 mW;
    d.1.b. Individual, multiple-transverse mode semiconductor
``lasers'', having any of the following:
    d.1.b.1. A wavelength of less than 1,400 nm and having an
average or CW output power exceeding 10W;
    d.1.b.2. A wavelength equal to or greater than 1,400 nm and less
than 1,900 nm, and having an average or CW output power exceeding
2.5 W; or
    d.1.b.3. A wavelength equal to or greater than 1,900 nm and
having an average or CW output power exceeding 1 W.
    d.1.c. Individual semiconductor ``laser'' arrays, having any of
the following:
    d.1.c.1. A wavelength of less than 1,400 nm and having an
average or CW output power exceeding 80 W;
    d.1.c.2. A wavelength equal to or greater than 1,400 nm and less
than 1,900 nm and having an average or CW output power exceeding 25
W; or
    d.1.c.3. A wavelength equal to or greater than 1,900 nm and
having an average or CW output power exceeding 10 W.
    d.1.d. Array stacks of semiconductor ``lasers'' containing at
least one array that is controlled under 6A005.d.1.c.
    Technical Notes:
    1. Semiconductor ``lasers'' are commonly called ``laser''
diodes.
    2. An ``array'' consists of multiple semiconductor ``laser''
emitters fabricated as a single chip so that the centers of the
emitted light beams are on parallel paths.
    3. An ``array stack'' is fabricated by stacking, or otherwise
assembling, ``arrays'' so that the centers of the emitted light
beams are on parallel paths.
    d.2. Carbon monoxide (CO) ``lasers'' having any of the
following:
    d.2.a. An output energy exceeding 2 J per pulse and a ``peak
power'' exceeding 5 kW; or
    d.2.b. An average or CW output power exceeding 5 kW;
    d.3. Carbon dioxide (CO2) ``lasers'' having any of
the following:
    d.3.a. A CW output power exceeding 15 kW;
    d.3.b. A pulsed output having a ``pulse duration'' exceeding 10
[mu]s and having any of the following:
    d.3.b.1. An ``average output power'' exceeding 10 kW; or
    d.3.b.2. A ``peak power'' exceeding 100 kW; or
    d.3.c. A pulsed output having a ``pulse duration'' equal to or
less than 10 [mu]s and having any of the following:
    d.3.c.1. A pulse energy exceeding 5 J per pulse; or
    d.3.c.2. An ``average output power'' exceeding 2.5 kW;
    d.4. Excimer ``lasers'', having any of the following:
    d.4.a. An output wavelength not exceeding 150 nm and having any
of the following:
    d.4.a.1. An output energy exceeding 50 mJ per pulse; or
    d.4.a.2. An ``average output power'' exceeding 1 W;
    d.4.b. An output wavelength exceeding 150 nm but not exceeding
190 nm and having any of the following:
    d.4.b.1. An output energy exceeding 1.5 J per pulse; or
    d.4.b.2. An ``average output power'' exceeding 120 W;
    d.4.c. An output wavelength exceeding 190 nm but not exceeding
360 nm and having any of the following:
    d.4.c.1. An output energy exceeding 10 J per pulse; or
    d.4.c.2. An ``average output power'' exceeding 500 W; or
    d.4.d. An output wavelength exceeding 360 nm and having any of
the following:
    d.4.d.1. An output energy exceeding 1.5 J per pulse; or
    d.4.d.2. An ``average output power'' exceeding 30 W;

    Note: For excimer ``lasers'' specially designed for lithography
equipment, see 3B001.

    d.5. ``Chemical lasers'', as follows:
    d.5.a. Hydrogen Fluoride (HF) ``lasers'';
    d.5.b. Deuterium Fluoride (DF) ``lasers'';
    d.5.c. ``Transfer lasers'', as follows:
    d.5.c.1. Oxygen Iodine (O2-I) ``lasers'';
    d.5.c.2. Deuterium Fluoride-Carbon dioxide (DF-CO2)
``lasers'';
    d.6. ``Non-repetitive pulsed'' Neodymium (Nd) glass ``lasers'',
having any of the following:
    d.6.a. A ``pulse duration'' not exceeding 1 [mu]s and an output
energy exceeding 50 J per pulse; or
    d.6.b. A ``pulse duration'' exceeding 1 [mu]s and an output
energy exceeding 100 J per pulse;

    Note: ``Non-repetitive pulsed'' refers to ``lasers'' that
produce either a single output pulse or that have a time interval
between pulses exceeding one minute.

    e. Components, as follows:
    e.1. Mirrors cooled either by active cooling or by heat pipe
cooling;
    Technical Note: Active cooling is a cooling technique for
optical components using flowing fluids within the subsurface
(nominally less than 1 mm below the optical surface) of the optical
component to remove heat from the optic.
    e.2. Optical mirrors or transmissive or partially transmissive
optical or electro-optical components specially designed for use
with controlled ``lasers'';
    f. Optical equipment, as follows:
    N.B.: For shared aperture optical elements, capable of operating
in ``Super-High Power Laser'' (``SHPL'') applications, see the U.S.
Munitions List (22 CFR part 121).
    f.1. Dynamic wavefront (phase) measuring equipment capable of
mapping at least 50 positions on a beam wavefront having any the
following:
    f.1.a. Frame rates equal to or more than 100 Hz and phase
discrimination of at least 5% of the beam's wavelength; or
    f.1.b. Frame rates equal to or more than 1,000 Hz and phase
discrimination of at least 20% of the beam's wavelength;
    f.2. ``Laser'' diagnostic equipment capable of measuring
``SHPL'' system angular beam steering errors of equal to or less
than 10 [mu]rad;
    f.3. Optical equipment and components specially designed for a
phased-array ``SHPL'' system for coherent beam combination to an
accuracy of lambda/10 at the designed wavelength, or 0.1 [mu]m,
whichever is the smaller;
    f.4. Projection telescopes specially designed for use with
``SHPL'' systems.

0
40. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6A006
is amended by adding quotes around the term ``Compensation systems'' as
it appears in the Heading and in paragraph d in the Items paragraph of
the List of Items Controlled section.

0
41. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6A008
is amended by adding a note to the beginning of the Items paragraph of
the List of Items Controlled section, and revising paragraph a in the
Items paragraph of the List of Items Controlled section, to read as
follows:

    6A008 Radar systems, equipment and assemblies having any of the
following characteristics (see List of Items Controlled), and
specially designed components therefor.
* * * * *

List of Items Controlled

* * * * *
    Items:

    Note: 6A008 does not control:
    a. Secondary surveillance radar (SSR);
    b. Civil Automotive Radar;
    c. Displays or monitors used for air traffic control (ATC)
having no more than 12 resolvable elements per mm;
    d. Meteorological (weather) radar.

    a. Operating at frequencies from 40 GHz to 230 GHz and having
any of the following:
    a.1. An ``average output power'' exceeding 100 mW; or
    a.2. Locating accuracy of 1 m or less (better) in range and 0.2
degree or less (better) in azimuth;
* * * * *

0
42. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6A205
is amended by:
0
a. Revising the heading;

0
b. Revising the Units paragraph in the List of Items Controlled
section, as set forth below;
0
c. Revising the ``Related Controls'' paragraph of the List of Items
Controlled section; as set forth below and
0
d. Revising the Items paragraph of the List of Items Controlled
section, to read as follows:

    6A205 ``Lasers'', ``laser'' amplifiers and oscillators, other
than those controlled by 0B001.g.5, 0B001.h.6, or 6A005, as follows
(see List of Items Controlled).

* * * * *

List of Items Controlled

    Unit: Equipment in number
    Related Controls: (1) See ECCNs 6E001 (``development''), 6E002
(``production''), and 6E201 (``use'') for technology for items
controlled under this entry. (2) Also see ECCNs 6A005 and 6A995. (3)
See ECCN 6A005.a.2 for additional controls on argon ion lasers; See
ECCN 6A005.b.6.b for additional controls on neodymium-doped lasers.
(4) ``Lasers'' specially designed or prepared for use in isotope
separation are subject to the export licensing authority of the
Nuclear Regulatory Commission (see 10 CFR part 110).
    Related Definitions: * * *
    Items:
    a. Argon ion ``lasers'' having both of the following
characteristics:
    a.1. Operating at wavelengths between 400 nm and 515 nm; and
    a.2. An average output power greater than 40 W;
    b. Tunable pulsed single-mode dye laser oscillators having all
of the following characteristics:
    b.1. Operating at wavelengths between 600 nm and 800 nm;
    b.2. Having an average output greater than 1 W;
    b.3 A repetition rate greater than 1 kHz; and
    b.4. Pulse width less than 100 ns;
    c. [RESERVED]
    d. Pulsed carbon dioxide ``lasers'' having all of the following
characteristics:
    d.1. Operating at wavelengths between 9,000 nm and 11,000 nm;
    d.2. A repetition rate greater than 250 Hz;
    d.3. An average output power greater than 500 W; and
    d.4. Pulse width of less than 200 ns;
    e. Para-hydrogen Raman shifters designed to operate at 16
micrometer output wavelength and at a repetition rate greater than
250 Hz.;
    f. Neodymium-doped (other than glass) lasers with an output
wavelength between 1000 and 1100 nm having either of the following:
    f.1. Pulse-excited and Q-switched with a pulse duration equal to
or greater than 1 ns, and having either of the following:
    f.1.a. A single-transverse mode output with an average output
power greater than 40 W; or
    f.1.b. A multiple-transverse mode output with an average output
power greater than 50 W; or
    f.2. Incorporating frequency doubling to give an output
wavelength between 500 and 550 nm with an average output power of
greater than 40 W.

0
43. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6A995
is amended by:
0
a. Revising the ``heading'' and paragraph c;
0
b. Redesignating paragraphs d and g from the items paragraph of the
List of Items Controlled section; and
0
c. Adding three new paragraphs d, e, and f to the Items paragraph of
the List of Items Controlled section, to read as follows:

    6A995 ``Lasers'', not controlled by 0B001.g.5, 0B001.h.6, 6A005
or 6A205.
* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    c. Ruby ``lasers'' having an output energy exceeding 20 J per
pulse;
    d. Non-``tunable'' ``pulsed lasers'' having an output wavelength
exceeding 975 nm but not exceeding 1,150 nm and having any of the
following:
    d.1. A ``pulse duration'' equal to or exceeding 1 ns but not
exceeding 1 [mu]s, and having any of the following:
    d.1.a. A single transverse mode output and having any of the
following:
    d.1.a. A `wall-plug efficiency' exceeding 12% and an ``average
output power'' exceeding 10 W and capable of operating at a pulse
repetition frequency greater than 1 kHz; or
    d.1.a.2.1. An ``average output power'' exceeding 20 W; or
    d.1.b. A multiple transverse mode output and having any of the
following:
    d.1.b.1. A `wall-plug efficiency' exceeding 18% and an ``average
output power'' exceeding 30 W;
    d.1.b.2. A ``peak power'' exceeding 200 MW; or
    d.1.b.3. An ``average output power'' exceeding 50 W; or
    d.2. A ``pulse duration'' exceeding 1 [mu]s and having any of
the following:
    d.2.a. A single transverse mode output and having any of the
following:
    d.2.a.1. A `wall-plug efficiency' exceeding 12% and an ``average
output power'' exceeding 10 W and capable of operating at a pulse
repetition frequency greater than 1 kHz; or
    d.2.a.2. An ``average output power'' exceeding 20 W; or
    d.2.b. A multiple transverse mode output and having any of the
following:
    d.2.b.1. A `wall-plug efficiency' exceeding 18% and an ``average
output power'' exceeding 30 W; or
    d.2.b.2. An ``average output power'' exceeding 500 W;
    e. Non-``tunable'' continuous wave ``(CW) lasers'', having an
output wavelength exceeding 975 nm but not exceeding 1,150 nm and
having any of the following:
    e.1. A single transverse mode output and having any of the
following:
    e.1.a. A `wall-plug efficiency' exceeding 12% and an ``average
output power'' exceeding 10 W and capable of operating at a pulse
repetition frequency greater than 1 kHz; or
    e.1.b. An ``average output power'' exceeding 500 W; or
    e.2. A multiple transverse mode output and having any of the
following:
    e.2.a. A `wall-plug efficiency' exceeding 18% and an ``average
output power'' exceeding 30 W; or
    e.2.b. An ``average output power'' exceeding 500 W;

    Note: 6A995.e.1.b does not control multiple transverse mode,
industrial ``lasers'' with output power less than o equal to 2kW
with a total mass greater than 1,200kg. For the purpose of this
note, total mass includes all components required to operate the
``laser'', e.g., ``laser'', power supply, heat exchanger, but
excludes external optics for beam conditioning and/or delivery.

    f. Non-``tunable'' ``lasers'', having a wavelength exceeding
1,400 nm, but not exceeding 1555 nm and having any of the following:
    f.1. An output energy exceeding 100 mJ per pulse and a pulsed
``peak power'' exceeding 1 W; or
    f.2. An average or CW output power exceeding 1 W.
* * * * *

0
44. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6D003
is amended by adding quotes around the term ``compensation systems'' in
the in paragraph f.1 in the Items paragraph of the List of Items
Controlled section.

0
45. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6 Sensors, Export Control Classification Number (ECCN) 6E201
is amended by revising the heading to read as follows:

    6E201 ``Technology'', not controlled by 6E001 or 6E002,
according to the General Technology Note for the ``use'' of
equipment controlled by 6A003.a.2. 6A003.a.3, 6A003.a.4; 6A005.a.2,
6A005.a.4, 6A005.b.2.b, 6A005.b.3.a, 6A005.b.4.b, 6A005.b.6.b,
6A005.c.1.b, 6A005.c.2.b, 6A005.d.3.c, or 6A005.d.4.c (as described
in the license requirement note to 6A005); 6A202, 6A203, 6A205,
6A225 or 6A226.
* * * * *

0
46. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7A001 is amended by revising the heading, and the License
Requirements and List of Items Controlled sections, to read as follows:

    7A001 Accelerometers as follows (see List of Items Controlled),
and specially designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to commodities that meet or    MT Column 1.
 exceed the parameters of 7A101.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

* * * * *

List of Items Controlled

    Unit: $ value
    Related Controls: See also 7A101 and 7A994. For angular or
rotational accelerometers, see 7A001.b. MT controls do not apply to
accelerometers that are specially designed and developed as
Measurement While Drilling (MWD) sensors for use in downhole well
service applications.
    Related Definitions: N/A
    Items:
    a. Linear accelerometers having any of the following:
    a.1. Specified to function at linear acceleration levels less
than or equal to 15 g, and having any of the following:
    a.1.a. A ``bias'' ``stability'' of less (better) than 130 micro
g with respect to a fixed calibration value over a period of one
year; or
    a.1.b. A ``scale factor'' ``stability'' of less (better) than
130 ppm with respect to a fixed calibration value over a period of
one year;
    a.2. Specified to function at linear acceleration levels
exceeding 15 g, and having all of the following:
    a.2.a. A ``bias'' ``repeatability'' of less (better) than 5,000
micro g over a period of one year; and
    a.2.b. A ``scale factor'' ``repeatability'' of less (better)
than 2,500 ppm over a period of one year; or
    a.3. Designed for use in inertial navigation or guidance systems
and specified to function at linear acceleration levels exceeding
100 g.
    b. Angular or rotational accelerometers specified to function at
linear acceleration levels exceeding 100 g.

0
47. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7A002 is amended by revising the heading and the License
Requirements and List of Items Controlled sections to read as follows:

    7A002 Gyros or angular rate sensors, having any of the following
characteristics (see List of Items Controlled), and specially
designed components therefor.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to commodities that meet or    MT Column 1.
 exceed the parameters of 7A102.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Note: For the purpose of MT controls only,
the term 'stability' is defined as a measure of the ability of a
specific mechanism or performance coefficient to remain invariant
when continuously exposed to a fixed operating condition. (This
definition does not refer to dynamic or servo stability.) (IEEE STD
528-2001 paragraph 2.247)
* * * * *

List of Items Controlled

    Unit: $ value
    Related Controls: See also 7A102 and 7A994. For angular or
rotational accelerometers, see 7A001.b.
    Related Definitions: N/A
    Items:
    a. A ``drift rate'' ``stability'', when measured in a 1 g
environment over a period of one month, and with respect to a fixed
calibration value, of less (better) than 0.5 degree per hour when
specified to function at linear acceleration levels up to and
including 100 g;
    b. An ``angle random walk'' of less (better) than or equal to
0.0035 degree per square root hour; or

    Note: 7A002.b does not control spinning mass gyros (spinning
mass gyros are gyros which use a continually rotating mass to sense
angular motion).

    c. A rate range greater than or equal to 500 degrees per second
and having any of the following:
    c.1. A ``drift rate'' ``stability'', when measured in a 1 g
environment over a period of three minutes, and with respect to a
fixed calibration value of less (better) than 40 degrees per hour;
or
    c.2 An ``angle random walk'' of less (better) than or equal to
0.2 degree per square root hour; or
    d. Specified to function at linear acceleration levels exceeding
100 g.

0
48. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7A003 is amended by:
0
a. Revising the License Requirements section, as set forth below;
0
b. Adding paragraph (d) in the Items paragraph of the List of Items
Controlled section, as set forth below; and
0
c. Revising Note 2 in the Items paragraph of the List of Items
Controlled section, to read as follows:

    7A003 Inertial Systems and specially designed components
therefor.

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to commodities that meet or    MT Column 1.
 exceed the parameters of 7A103.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    d. Inertial measurement equipment including Inertial Measurement
Units (IMU) and Inertial Reference Systems (IRS), incorporating
accelerometers or gyros controlled by 7A001 or 7A002, and specially
designed components therefor.

    Note 1: * * *

    Note 2: 7A003 does not control inertial navigation systems that
are certified for use on ``civil aircraft'' by civil authorities of
a Wassenaar Arrangement Participating State, see Supplement No. 1 to
Part 743 for a list of these countries.

* * * * *

0
49. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics is amended by adding Export Control
Classification Number (ECCN) 7A008 to read as follows:

    7A008 Underwater sonar navigation systems, using Doppler
velocity or correlation velocity logs integrated with a heading
source, having a positioning accuracy of equal to or less (better)
than 3% of distance traveled Circular Error Probable (CEP), and
specially designed components therefore.

License Requirements

    Reason for Control: NS, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 2.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A

List of Items Controlled

    Unit: $ value
    Related Controls: 7A008 does not control systems specially
designed for installation on surface vessels or systems requiring
acoustic beacons or buoys to provide positioning data. See 6A001.a
for acoustic systems, and 6A001.b for correlation-velocity sonar log
equipment. See 8A002 for other marine systems.
    Related Definitions: N/A
    Items:
    The list of items controlled is contained in the ECCN heading.

0
50. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7A101 is amended by revising the Heading and the Items
paragraph of the List of Items Controlled section, to read as follows:

    7A101 Accelerometers, other than those controlled by 7A001 (see
List of Items Controlled), and specially designed components
therefore.
* * * * *

List of Items Controlled

    Unit: * * *
    Related Controls: * * *
    Related Definitions: * * *
    Items:
    a. Linear accelerometers designed for use in inertial navigation
systems or in guidance systems of all types, usable in ``missiles''
having all of the following characteristics, and specially designed
components therefore:
    1. `Scale factor' ``repeatability'' less (better) than 1250 ppm;
and
    2. `Bias' ``repeatability'' less (better) than 1250 micro g.

    Note: The measurement of `bias' and `scale factor' refers to one
sigma standard deviation with respect to a fixed calibration over a
period of one year.

    b. Continuous output accelerometers of any type, specified to
function at acceleration levels greater than 100 g, and specially
designed components therefor.

0
51. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7B003 is amended by revising the Related Controls
paragraph in the List of Items Controlled section, to read as follows:

    7B003 Equipment specially designed for the ``production'' of
equipment controlled by 7A (except 7A994).
* * * * *

List of Items Controlled

    Unit: * * *
    Related Controls: (1) See also 7B103, (this entry is subject to
the licensing authority of the U.S. Department of State, Directorate
of Defense Trade Controls (see 22 CFR part 121)) and 7B994. (2) This
entry includes: Inertial Measurement Unit (IMU module) tester; IMU
platform tester; IMU stable element handling fixture; IMU platform
balance fixture; gyro tuning test station; gyro dynamic balance
station; gyro run-in/motor test station; gyro evacuation and fill
station; centrifuge fixtures for gyro bearings; accelerometer axis
align stations; accelerometer test station; and fiber optic gyro
coil winding machines.
    Related Definitions: * * *
    Items: * * *

0
52. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7D001 is amended by revising the License Requirements
section, to read as follows:

    7D001 ``Software'' specially designed or modified for the
``development'' or ``production'' of equipment controlled by 7A
(except 7A994) or 7B (except 7B994).

License Requirements

    Reason for Control: NS, MT, RS, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to ``software'' for equipment  NS Column 1.
 controlled by 7A001 to 7A004, 7A006,
 7A008, 7B001, 7B002 or 7B003.
MT applies to entire entry except 7A008.  MT Column 1.
RS applies to ``software'' for inertial   RS Column 1.
 navigation systems inertial equipment,
 and specially designed components
 therefor, for ``civil aircraft''.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

* * * * *

0
53. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7D003 is amended by revising the License Requirements
section, and revising paragraphs a and b in the Items paragraph of the
List of Items Controlled section, to read as follows:

    7D003 Other ``software'', as follows (see List of Items
Controlled).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to entire entry, except        MT Column 1.
 software for 7A008.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

* * * * *

List of Items Controlled

* * * * *
    Items:
    a. ``Software'' specially designed or modified to improve the
operational performance or reduce the navigational error of systems
to the levels controlled by 7A003, 7A004 or 7A008;
    b. ``Source code'' for hybrid integrated systems that improves
the operational performance or reduces the navigational error of
systems to the level controlled by 7A003 or 7A008 by continuously
combining heading data with any of the following:
    b.1. Doppler radar or sonar velocity data;
    b.2. Global navigation satellite systems (i.e., GPS or GLONASS)
reference data; or
    b.3. Data from `Data-Based Referenced Navigation' (`DBRN'')
systems;
* * * * *

0
54. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7E001 is amended by revising the License Requirements
section, to read as follows:

    7E001 ``Technology'' according to the General Technology Note
for the ``development'' of equipment or ``software'' controlled by
7A (except 7A994), 7B (except 7B994) or 7D (except 7D994).

License Requirements

    Reason for Control: NS, MT, RS, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for items    NS Column 1.
 controlled by 7A001 to 7A004, 7A006,
 7A008, 7B001 to 7B003, 7D001 to 7D003.
MT applies to entire entry except 7A008.  MT Column 1.
RS applies to ``technology'' for          RS Column 1.
 inertial navigation systems, inertial
 equipment and specially designed
 components therefor, for civil aircraft.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

* * * * *

0
55. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7E002 is amended by revising the License Requirements
section, to read as follows:

    7E002 ``Technology'' according to the General Technology Note
for the ``production'' of equipment controlled by 7A (except 7A994)
or 7B (except 7B994).

License Requirements

    Reason for Control: NS, MT, RS, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for          NS Column 1.
 equipment controlled by 7A001 to 7A004,
 7A006, 7A008 or 7B001 to 7B003.
MT applies to entire entry, except 7A008  MT Column 1.
RS applies to ``technology'' for          RS Column 1.
 inertial navigation systems, inertial
 equipment and specially designed
 components therefor, for civil aircraft.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

0
56. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 7 Navigation and Avionics, Export Control Classification
Number (ECCN) 7E004 is amended by revising the License Requirements
section, and adding a new paragraph adding a.7 in the Items paragraph
of the List of Items Controlled sections, to read as follows:

    7E004 Other ``technology'', as follows (see List of Items
Controlled).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to entire entry, except        MT Column 1.
 7E004.a.7.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

* * * * *

List of Items Controlled

* * * * *
    Items:
    a. * * *
* * * * *
    a.7. ``DBRN'' systems designed to navigate underwater using
sonar or gravity databases that provide a positioning accuracy equal
to or less (better) than 0.4 nautical miles.
* * * * *

0
57. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 8 Marine, Export Control Classification Number (ECCN) 8A002 is
amended by:
0
a. Revising the ``heading'', as set forth below;
0
b. Revising the ``unit'' paragraph of the List of Items Controlled
section, as set forth below; and
0
c. Revising paragraph a in the Items paragraph of the List of Items
Controlled section, to read as follows:

    8A002 Systems, equipment and components, as follows (see List of
Items Controlled).
* * * * *

List of Items Controlled

    Unit: Systems and equipment in number, components in $ value
    Related Controls: * * *
    Related Definitions: * * *
    Items:
    a. Systems, equipment and components, specially designed or
modified for submersible vehicles, designed to operate at depths
exceeding 1,000 m, as follows:
    a.1. Pressure housings or pressure hulls with a maximum inside
chamber diameter exceeding 1.5 m;
    a.2. Direct current propulsion motors or thrusters;
    a.3. Umbilical cables, and connectors therefor, using optical
fiber and having synthetic strength members;
    a.4. Components manufactured from material specified in ECCN
8C001.
    Technical Note: The object of this control should not be
defeated by the export of syntactic foam controlled by 8C001 when an
intermediate stage of manufacture has been performed and it is not
yet in its final component form.
* * * * *

0
58. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 8 Marine, Export Control Classification Number (ECCN) 8C001 is
amended by revising the `Related Controls' paragraph in the List of
Items Controlled section, to read as follows:

    8C001 Syntactic foam designed for underwater use, having all of
the following (see List of Items Controlled).
* * * * *

List of Items Controlled

    Unit: * * *
    Related Controls: See also 8A002.a.4.
    Related Definition: * * *
    Items: * * *

0
59. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 9 Propulsion Systems, Space Vehicles and Related Equipment is
amended by revising the title of Category 9, to read as follows:

Category 9--Aerospace and Propulsion

* * * * *

0
60. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 9 Aerospace and Propulsion, Export Control Classification
Number 9D004 is amended by revising the License Requirements section,
and adding two new paragraphs f and g to the Items paragraph of the
List of Items Controlled section, to read as follows:

    9D004 Other ``software'', as follows (see List of Items
Controlled).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to entire entry, except        MT Column 1.
 9D004.g and .f.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

* * * * *

List of Items Controlled

* * * * *
    Items:
* * * * *
    f. ``Software'' specially designed to design the internal
cooling passages of aero gas turbine engine blades, vanes and tip
shrouds;
    g. ``Software'' having all of the following characteristics:
    g.1. Being specially designed to predict aero thermal,
aeromechanical and combustion conditions in aero gas turbine
engines; and
    g.2. Having theoretical modeling predictions of the aero
thermal, aeromechanical and combustion conditions which have been
validated with actual turbine engine (experimental or production)
performance data.
* * * * *

0
61. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 9 Aerospace and Propulsion, Export Control Classification
Number 9E001 is amended by revising the Heading and the License
Requirements section, to read as follows:

    9E001 ``Technology'' according to the General Technology Note
for the ``development'' of equipment or ``software'' controlled by
9A001.b, 9A004 to 9A012, 9B (except 9B990 or 9B991), or 9D (except
9D990 or 9D991).

License Requirements

    Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for items    NS Column 1.
 controlled by 9A001.b., 9A012, 9B001 to
 9B010, 9D001 to 9D004 for NS reasons.
MT applies to ``technology'' for items    MT Column 1.
 controlled by 9B001, 9B002, 9B003,
 9B004, 9B005, 9B007, 9B105, 9B106,
 9B116, 9B117, 9D001, 9D002, 9D003, and
 9D004 for MT reasons.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes: See Sec.  743.1 of the EAR for
reporting requirements for exports under License Exceptions.
* * * * *

0
62. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 9 Aerospace and Propulsion, Export Control Classification
Number 9E002 is amended by revising the Heading, to read as follows:

    9E002 ``Technology'' according to the General Technology Note
for the ``production'' of equipment controlled by 9A001.b, 9A004 to
9A011 or 9B (except 9B990 or 9B991).
* * * * *

0
63. Supplement No. 3 to Part 774 (the Commerce Control List) is amended
to add a new Statement of Understanding after the existing Statement of
Understanding--Medical equipment, to read as follows:

Supplement No. 3 to Part 774--Statements of Understanding

* * * * *

Statement of Understanding--Source Code

    For the purpose of national security controlled items, ``source
code'' items are controlled either by ``software'' or by
``software'' and ``technology'' controls, except when such ``source
code'' items are explicitly decontrolled.

    Dated: October 23, 2007.
Christopher A. Padilla,
Assistant Secretary for Export Administration.
[FR Doc. E7-21247 Filed 11-2-07; 8:45 am]

BILLING CODE 3510-33-P


[Federal Register Volume 78, Number 231 (Monday, December 2, 2013)]
[Rules and Regulations]
[Pages 72003-72004]
[FR Doc No: 2013-28676]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2013-0681; Airspace Docket No. 13-AEA-15]

Amendment of Class E Airspace; Olean, NY

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This action amends Class E Airspace at Olean, NY, as the Olean
Non-Directional Beacon (NDB) has been decommissioned, requiring
airspace redesign at Cattaraugus County-Olean Airport. This enhances
the safety and management of aircraft operations at the airport. This
action also updates the geographic coordinates of the airport.

DATES: Effective 0901 UTC, February 6, 2014. The Director of the
Federal Register approves this incorporation by reference action under
title 1, Code of Federal Regulations, part 51, subject to the annual
revision of FAA Order 7400.9 and publication of conforming amendments.

FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, P.O.
Box 20636, Atlanta, Georgia 30320; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

History

    On August 22, 2013, the FAA published in the Federal Register a
notice of proposed rulemaking (NPRM) to amend Class E airspace at
Cattaraugus County-Olean Airport, Olean, NY. (78 FR 52115). Interested
parties were invited to participate in this rulemaking effort by
submitting written comments on the proposal to the FAA. No comments
were received.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.9X dated August 7, 2013, and effective September 15,
2013, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designations listed in this document will be published
subsequently in the Order.

The Rule

    This amendment to Title 14, Code of Federal Regulations (14 CFR)
part 71 amends Class E airspace extending upward from 700 feet above
the surface within a 10-mile radius of Cattaraugus County-Olean
Airport, Olean, NY. Airspace reconfiguration is necessary due to the
decommissioning of the Olean NDB and cancellation of the NDB approach,
and for continued safety and management of IFR operations at the
airport. The geographic coordinates of the airport are adjusted to
coincide with the FAAs aeronautical database.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore, (1) is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a Regulatory Evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that only affects air traffic procedures and air navigation, it is
certified that this rule, when promulgated, does not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it amends controlled airspace at Cattaraugus County-Olean Airport,
Olean, NY.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1E, ``Environmental Impacts: Policies and
Procedures,'' paragraph 311a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR Part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for Part 71 continues to read as follows:

    Authority:  49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854,
24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.9X, Airspace Designations and Reporting
Points, dated August 7, 2013, effective September 15, 2013, is amended
as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward from 700
feet or More Above the Surface of the Earth.

* * * * *

AEA NY E5 Olean, NY [Amended]

Cattaraugus County-Olean Airport, NY
    (Lat. 42[deg]14'28'' N., long. 78[deg]22'17'' W.)

    That airspace extending upward from 700 feet above the surface
within a 10-mile radius of Cattaraugus County-Olean Airport.

    Issued in College Park, Georgia, on November 19, 2013.
Kip B. Johns,
Manager, Operations Support Group, Eastern Service Center, Air Traffic
Organization.
[FR Doc. 2013-28676 Filed 11-29-13; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 40 (Friday, February 28, 2020)]
[Notices]
[Pages 12032-12035]
[FR Doc No: 2020-04073]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88272; File No. SR-Phlx-2020-06]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend PSX Rule
3506 (Anti-Money Laundering Compliance Program) and Options 9, Section
21 (Anti-Money Laundering Compliance Program)

February 24, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 18, 2020, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III, below,
which Items have been prepared by the Exchange. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend PSX Rule 3506 and Options 9, Section
21, both titled ``Anti-Money Laundering Compliance Program.'' This rule
change is intended to reflect the Financial Crimes Enforcement
Network's (``FinCEN'') adoption of a final rule on Customer Due
Diligence Requirements for Financial Institutions (``CDD Rule'').
Specifically, the proposed amendments would conform PSX Rule 3506 and
Options 9, Section 21 to the CDD Rule's amendments to the minimum
regulatory requirements for members' anti-money laundering (``AML'')
compliance programs by requiring such programs to include risk-based
procedures for conducting ongoing customer due diligence. This ongoing
customer due diligence element for AML programs includes: (1)
Understanding the nature and purpose of customer relationships for the
purpose of developing a customer risk profile; and (2) conducting
ongoing monitoring to identify and report suspicious transactions and,
on a risk basis, to maintain and update customer information.
    The Exchange has designated this proposal as ``non-controversial''
under

paragraph (f)(6) of Rule 19b-4 \3\ under the Act.
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's
website at http://nasdaqphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
I. Background
    The Bank Secrecy Act \4\ (``BSA''), among other things, requires
financial institutions,\5\ including broker-dealers, to develop and
implement AML programs that, at a minimum, meet the statutorily
enumerated ``four pillars.'' \6\ These four pillars currently require
broker-dealers to have written AML programs that include, at a minimum:
---------------------------------------------------------------------------

    \4\ 31 U.S.C. 5311, et seq.
    \5\ See U.S.C. 5312(a)(2) (defining ``financial institution'').
    \6\ 31 U.S.C. 5318(h)(1).
---------------------------------------------------------------------------

     The establishment and implementation of policies,
procedures and internal controls reasonably designed to achieve
compliance with the applicable provisions of the BSA and implementing
regulations;
     independent testing for compliance by broker-dealer
personnel or a qualified outside party;
     designation of an individual or individuals responsible
for implementing and monitoring the operations and internal controls of
the AML program; and
     ongoing training for appropriate persons.\7\
---------------------------------------------------------------------------

    \7\ 31 CFR 1023.210(b).

In addition to meeting the BSA's requirement with respect to AML
programs, Exchange members must also comply with PSX Rule 3506 and
Options 9, Section 21, respectively, which incorporates the BSA's four
pillars, as well as requires members' AML programs to establish and
implement policies and procedures that can be reasonably expected to
detect and cause the reporting of suspicious transactions.
    On May 11, 2016, FinCEN, the bureau of the Department of the
Treasury responsible for administering the BSA and its implementing
regulations, issued the CDD Rule \8\ to clarify and strengthen customer
due diligence for covered financial institutions, \9\ including broker-
dealers. In its CDD Rule, FinCEN identifies four components of customer
due diligence: (1) Customer identification and verification; (2)
beneficial ownership identification and verification; (3) understanding
the nature and purpose of customer relationships; and (4) ongoing
monitoring for reporting suspicious transactions and, on a risk basis,
maintaining and updating customer information.\10\ As the first
component is already required to be part of a broker-dealers AML
program under the BSA, the CDD Rule focuses on the other three
components.
---------------------------------------------------------------------------

    \8\ FinCEN Customer Due Diligence Requirements for Financial
Institutions; CDD Rule, 81 FR 29397 (May 11, 2016) (CDD Rule
Release); 82 FR 45182 (September 28, 2017) (making technical
correcting amendments to the final CDD Rule published on May 11,
2016). FinCEN is authorized to impose AML program requirements on
financial institutions and to require financial institutions to
maintain procedures to ensure compliance with the BSA and associated
regulations. 31 U.S.C. 5318(h)(2) and (a)(2). The CDD Rule is the
result of the rulemaking process FinCEN initiated in March 2012. See
77 FR 13046 (March 5, 2012) (Advance Notice of Proposed Rulemaking)
and 79 FR 45151 (Aug. 4, 2014) (Notice of Proposed Rulemaking).
    \9\ See 31 CFR 1010.230(f) (defining ``covered financial
institution'').
    \10\ See CDD Rule Release at 29398.
---------------------------------------------------------------------------

    Specifically, the CDD Rule focuses particularly on the second
component by adding a new requirement that covered financial
institutions identify and verify the identity of the beneficial owners
of all legal entity customers at the time a new account is opened,
subject to certain exclusions and exemptions.\11\ The CDD Rule also
addresses the third and fourth components, which FinCEN states ``are
already implicitly required for covered financial institutions to
comply with their suspicious activity reporting requirements,'' by
amending the existing AML program rules for covered financial
institutions to explicitly require these components to be included in
AML programs as a new ``fifth pillar.''
---------------------------------------------------------------------------

    \11\ See 31 CFR 1010.230(d) (defining ``beneficial owner'') and
31 CFR 1010.230(e) (defining ``legal entity customer'').
---------------------------------------------------------------------------

    On November 21, 2017, FINRA published Regulatory Notice 17-40 to
provide guidance to member firms regarding their obligations under
FINRA Rule 3310 in light of the adoption of FinCEN's CDD Rule. In
addition, the Notice summarized the CDD Rule's impact on member firms,
including the addition of the new fifth pillar required for member
firms' AML programs. FINRA also amended FINRA Rule 3310 to explicitly
incorporate the fifth pillar.\12\ This proposed rule change amends PSX
Rule 3506 and Options 9, Section 21 to harmonize these rules with the
FINRA rule and incorporate the fifth pillar.
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release No. 83154 (May 2,
2018), 83 FR 20906 (May 8, 2018) (File No. SR-FINRA-2018-016).
---------------------------------------------------------------------------

II. PSX Rule 3506 and Options 9, Section 21 and Amendment to Minimum
Requirements for Members' AML Programs
    Section 352 of the USA PATRIOT Act of 2001 \13\ amended the BSA to
require broker-dealers to develop and implement AML programs that
include the four pillars mentioned above. Consistent with Section 352
of the PATRIOT Act, and incorporating the four pillars, Options 9,
Section 21 requires each member to develop and implement a written AML
program reasonably designed to achieve and monitor the member's
compliance with the BSA and implementing regulations. Among other
requirements, PSX Rule 3506 and Options 9, Section 21 require that each
member firm, at a minimum: (1) Establish and implement policies and
procedures that can be reasonably expected to detect and cause the
reporting of suspicious transactions; (2) establish and implement
policies, procedures, and internal controls reasonably designed to
achieve compliance with the BSA and implementing regulations; (3)
provide independent testing for compliance to be conducted by member
personnel or a qualified outside party; (4) designate and identify to
the Exchange an individual or individuals (i.e., AML compliance
person(s)) who will be responsible for implementing and monitoring the
day-to-day operations and internal controls of the AML program and
provide prompt notification to the Exchange of any changes to the
designation; and (5)

provide ongoing training for appropriate persons.
---------------------------------------------------------------------------

    \13\ Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001,
Public Law 107-56, 115 Stat. 272 (2001) (``PATRIOT Act'').
---------------------------------------------------------------------------

    FinCEN's CDD Rule does not change the requirements of either PSX
Rule 3506 or Options 9, Section 21, and members must continue to comply
with its requirements.\14\ However, FinCEN's CDD Rule amends the
minimum regulatory requirements for broker-dealers' AML programs by
explicitly requiring such programs to include risk-based procedures for
conducting ongoing customer due diligence.\15\ Accordingly, the
Exchange is proposing to amend PSX Rule 3506 and Options 9, Section 21
to incorporate this ongoing customer due diligence element, or ``fifth
pillar'' required for AML programs. Thus, proposed PSX Rule 3506(a)(6)
and Options 9, Section 21(a)(6) would provide that the AML programs
required by this Rule shall, at a minimum include appropriate risk-
based procedures for conducting ongoing customer due diligence, to
include, but not be limited to: (A) Understanding the nature and
purpose of customer relationships for the purpose of developing a
customer risk profile; and (B) conducting ongoing monitoring to
identify and report suspicious transactions and, on a risk basis, to
maintain and update customer information.
---------------------------------------------------------------------------

    \14\ FinCEN notes that broker-dealers must continue to comply
with FINRA Rules, notwithstanding differences between the CDD Rule
and FINRA Rule 3310, which is substantially identical to PSX Rule
3506 and Options 9, Section 21. See CDD Rule Release 29421, n. 85.
    \15\ See CDD Rule Release at 29420; 31 CFR 1023.210.
---------------------------------------------------------------------------

    As stated in the CDD Rule, these provisions are not new and merely
codify existing expectations for members to adequately identify and
report suspicious transactions as required under the BSA and
encapsulate practices generally already undertaken by securities firms
to know and understand their customers.\16\ The proposed rule change
simply incorporates into PSX Rule 3506 and Options 9, Section 21 the
ongoing customer due diligence element, or ``fifth pillar,'' required
for AML programs by the CDD Rule to aid members in complying with the
CDD Rule's requirements. However, to the extent that these elements,
which are briefly summarized below, are not already included in
members' AML programs, the CDD Rule requires members to update their
AML programs to explicitly incorporate them.
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    \16\ Id. at 29419.
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III. Summary of Fifth Pillar's Requirements
Understanding the Nature and Purpose of Customer Relationships
    FinCEN states in the CDD Rule that firms must necessarily have an
understanding of the nature and purpose of the customer relationship in
order to determine whether a transaction is potentially suspicious and,
in turn, to fulfill their SAR obligations.\17\ To that end, the CDD
Rule requires that firms understand the nature and purpose of the
customer relationship in order to develop a customer risk profile. The
customer risk profile refers to information gathered about a customer
to form the baseline against which customer activity is assessed for
suspicious transaction reporting.\18\ Information relevant to
understanding the nature and purpose of the customer relationship may
be self-evident and, depending on the facts and circumstances, may
include such information as the type of customer, account or service
offered, and the customer's income, net worth, domicile, or principal
occupation or business, as well as, in the case of existing customers,
the customer's history of activity.\19\ The CDD Rule also does not
prescribe a particular form of the customer risk profile.\20\ Instead,
the CDD Rule states that depending on the firm and the nature of its
business, a customer risk profile may consist of individualized risk
scoring, placement of customers into risk categories or another means
of assessing customer risk that allows firms to understand the risk
posed by the customer and to demonstrate that understanding.\21\
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    \17\ Id. at 29421.
    \18\ Id. at 29422.
    \19\ Id.
    \20\ Id.
    \21\ Id.
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    The CDD Rule also addresses the interplay of understanding the
nature and purpose of customer relationships with the ongoing
monitoring obligation discussed below. The CDD Rule explains that firms
are not necessarily required or expected to integrate customer
information or the customer risk profile into existing transaction
monitoring systems (for example, to serve as the baseline for
identifying and assessing suspicious transactions on a contemporaneous
basis).\22\ Rather, FinCEN expects firms to use the customer
information and customer risk profile as appropriate during the course
of complying with their obligations under the BSA in order to determine
whether a particular flagged transaction is suspicious.\23\
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    \22\ Id.
    \23\ Id.
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Conduct Ongoing Monitoring
    As with the requirement to understand the nature and purpose of the
customer relationship, the requirement to conduct ongoing monitoring to
identify and report suspicious transactions and, on a risk basis, to
maintain and update customer information, merely adopts existing
supervisory and regulatory expectations as explicit minimum standards
of customer due diligence required for firms' AML programs.\24\ If, in
the course of its normal monitoring for suspicious activity, the member
detects information that is relevant to assessing the customer's risk
profile, the member must update the customer information, including the
information regarding the beneficial owners of legal entity
customers.\25\ However, there is no expectation that the member update
customer information, including beneficial ownership information, on an
ongoing or continuous basis.\26\
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    \24\ Id. at 29402.
    \25\ Id. at 29420-21. See also FINRA Regulatory Notice 17-40
(discussing identifying and verifying the identity of beneficial
owners of legal entity customers).
    \26\ Id.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\27\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\28\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general to protect
investors and the public interest. Specifically, the Exchange believes
the proposed rule change will protect investors, because it will aid
members in complying with the CDD Rule's requirement that members' AML
programs include risk-based procedures for conducting ongoing customer
due diligence by also incorporating the requirement into PSX Rule 3506
and Options 9, Section 21.
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    \27\ 15 U.S.C. 78f(b).
    \28\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change
simply

incorporates into PSX Rule 3506 and Options 9, Section 21 the ongoing
customer due diligence element, or ``fifth pillar,'' required for AML
programs by the CDD Rule. Regardless of the proposed rule change, to
the extent that the elements of the fifth pillar are not already
included in members' AML programs, the CDD Rule requires members to
update their AML programs to explicitly incorporate them. In addition,
as stated in the CDD Rule, these elements are already implicitly
required for covered financial institutions to comply with their
suspicious activity reporting requirements. Further, all Exchange
members that have customers are required to be members of FINRA
pursuant to Rule 15b9-1 under the Exchange Act,\29\ and are therefore
already subject to the requirements of FINRA Rule 3310. Additionally,
the proposed rule change is virtually identical \30\ to FINRA Rule
3310. The Exchange is not imposing any additional direct or indirect
burdens on member firms or their customers through this proposal, and
as such, the proposal imposes no new burdens on competition.
---------------------------------------------------------------------------

    \29\ 17 CFR 240.15b9-1.
    \30\ The Exchange notes that changes between the proposed Rule
and FINRA Rule 3310 are non-substantive and relate to cross
references.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \31\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\32\
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    \31\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \32\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2020-06 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2020-06. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-Phlx-2020-06 and should be submitted on
or before March 20, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-04073 Filed 2-27-20; 8:45 am]
 BILLING CODE 8011-01-P