[Federal Register Volume 81, Number 145 (Thursday, July 28, 2016)]
[Rules and Regulations]
[Pages 49517-49531]
[FR Doc No: 2016-17506]

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Federal Register / Vol. 81, No. 145 / Thursday, July 28, 2016 / Rules
and Regulations

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 774

[Docket No. 120105019-5755-01]
RIN 0694-AF52

Commerce Control List: Addition of Items Determined To No Longer
Warrant Control Under United States Munitions List Category XIV
(Toxicological Agents) or Category XVIII (Directed Energy Weapons)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: This final rule implements changes described in a proposed
rule that the Bureau of Industry and Security (BIS) published on June
17, 2015. Specifically, this final rule describes how articles the
President has determined no longer warrant control under Category XIV
(Toxicological Agents, Including Chemical Agents, Biological Agents,
and Associated Equipment) or Category XVIII (Directed Energy Weapons)
of the United States Munitions List (USML) are now controlled under the
Commerce Control List (CCL). The affected Category XIV articles consist
primarily of dissemination, detection, and protection ``equipment'' and
related articles, such as production and test ``equipment,'' and are
controlled under new Export Control Classification Numbers (ECCNs)
1A607, 1B607, 1C607, 1D607, and 1E607, as added to the CCL by this
final rule. The affected Category XVIII articles consist primarily of
tooling, production ``equipment,'' test and evaluation ``equipment,''
test models, and related articles and are controlled under new ECCNs
6B619, 6D619 and 6E619, as added to the CCL by this final rule.
    This final rule is one in a series of rules describing how various
types of articles that the President has determined no longer warrant
control on the USML, as part of the Administration's Export Control
Reform Initiative, are controlled on the CCL in accordance with the
requirements of the Export Administration Regulations (EAR).
    This final rule is being published by BIS in conjunction with a
final rule from the Department of State, Directorate of Defense Trade
Controls, which amends the list of articles controlled by USML
Categories XIV and XVIII. The citations in this BIS rule to USML
Categories XIV and XVIII reflect the amendments contained in the
Department of State's rule. The revisions made by BIS in this rule are
part of Commerce's retrospective regulatory review plan under Executive
Order 13563 completed in August 2011.

DATES: This rule is effective December 31, 2016.

ADDRESSES: The Department of Commerce's full retrospective regulatory
review plan can be accessed at: http://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.

FOR FURTHER INFORMATION CONTACT: For questions regarding dissemination,
detection and protection ``equipment'' and related items that are
controlled under new ECCNs 1A607, 1B607, 1C607, 1D607, and 1E607,
contact Richard P. Duncan, Ph.D., Director, Chemical and Biological
Controls Division, Office of Nonproliferation and Treaty Compliance,
Bureau of Industry and Security, telephone:<PHONE_NUMBER>, email:
<EMAIL_ADDRESS>    For questions regarding tooling, production ``equipment,'' test and
evaluation ``equipment,'' test models, and related items that are
controlled under new ECCNs 6B619, 6D619 and 6E619, contact Mark Jaso,
Sensors and Aviation Division, Office of National Security & Technology
Transfer Controls, Bureau of Industry and Security, telephone: (202)
482-0987, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    This final rule is published by the Bureau of Industry and Security
(BIS) as part of the Administration's Export Control Reform (ECR)
Initiative, the object of which is to protect and enhance U.S. national
security interests. The implementation of the ECR initiative includes
amendment of the International Traffic in Arms Regulations (ITAR) and
its U.S. Munitions List (USML), so that they control only those items
that provide the United States with a critical military or intelligence
advantage or otherwise warrant such controls, and amendment of the
Export Administration Regulations (EAR) to control military items that
do not warrant USML controls. This series of amendments to the ITAR and
the EAR will reform the U.S. export control system to enhance our
national security by: (i) Improving the interoperability of U.S.
military forces with allied countries; (ii) strengthening the U.S.
industrial base by, among other things, reducing incentives for foreign
manufacturers to design out and avoid U.S.-origin content and services;
and (iii) allowing export control officials to focus government
resources on transactions that pose greater national security, foreign
policy, or proliferation concerns than those involving our NATO allies
and other multi-regime partners.
    Following the structure set forth in the final rule titled
``Revisions to the Export Administration Regulations: Initial
Implementation of Export Control Reform'' (78 FR 22660, April 16, 2013)
(hereinafter the ``April 16 (initial implementation) rule''), this
final rule describes BIS's implementation of controls, under the EAR's
CCL, on certain dissemination, detection and protection ``equipment''
and related articles previously controlled under USML Category XIV in
the ITAR and certain tooling, production ``equipment,'' test and
evaluation ``equipment,'' test models and related articles previously
controlled under USML Category XVIII of the ITAR.
    In the April 16 (initial implementation) rule, BIS created a series
of new ECCNs to control items that would be removed from the USML and
similar items from the Wassenaar Arrangement on Export Controls for
Conventional Arms and Dual Use Goods and Technologies Munitions List
(Wassenaar Arrangement Munitions List or WAML) that were already
controlled elsewhere on the CCL. That final rule referred to this
series of new ECCNs as

the ``600 series,'' because the third character in each of these new
ECCNs is the number ``6.'' The first two characters of the ``600
series'' ECCNs serve the same function as any other ECCN as described
in Sec.  738.2 of the EAR. The first character is a number, within the
range of 0 through 9, that identifies the Category on the CCL in which
the ECCN is located. The second character is a letter, within the range
of A through E, that identifies the product group in a CCL Category. As
indicated above, the third character in the ``600 series'' ECCNs is the
number ``6,'' which distinguishes the items controlled under this
series of ECCNs from items identified under other ECCNs on the CCL.
With few exceptions, the final two characters identify the WAML
category that covers items that are the same or similar to items in a
particular ``600 series'' ECCN.
    Pursuant to section 38(f) of the Arms Export Control Act (AECA),
the President is obligated to review the USML ``to determine what
items, if any, no longer warrant export controls under'' the AECA. The
President must report the results of the review to Congress and wait 30
days before removing any such items from the USML. The report must
``describe the nature of any controls to be imposed on that item under
any other provision of law.'' 22 U.S.C. 2778(f)(1).
    The changes made by this final rule and in the State Department's
companion rule to Categories XIV and XVIII of the USML are based on a
review of these USML Categories by the Defense Department, which worked
with the Departments of State and Commerce in preparing these
amendments. Other agencies with expertise and equities in the items at
issue in these rules were consulted as well. The review focused on
identifying those types of articles that provide the United States with
a critical military or intelligence capability and that are not
currently in normal commercial use. Such items remain on the USML.
Other items with less than a critical military or intelligence
capability not in normal commercial use will transition to the ``600
series'' controls. It is the intent of the agencies that USML
Categories XIV and XVIII, and the corresponding ``600 series'' ECCNs on
the CCL, not control items in normal commercial use. Such items should
be controlled under existing dual-use controls on the CCL, consistent
with the Wassenaar Arrangement List of Dual-Use Goods and Technologies.
    All references to the USML in this rule are to the list of defense
articles that are controlled for purposes of export, temporary import,
or brokering pursuant to the ITAR, and not to the list of defense
articles on the United States Munitions Import List (USMIL) that are
controlled by the Bureau of Alcohol, Tobacco, Firearms and Explosives
(ATF) for purposes of permanent import under its regulations at 27 CFR
part 447. Pursuant to section 38(a)(1) of the AECA, all defense
articles controlled for export or import, or that are subject to
brokering controls, are part of the ``USML'' under the AECA. For the
sake of clarity, references to the USMIL are to the list of defense
articles controlled by ATF for purposes of permanent import. All
defense articles described in the USMIL or the USML are subject to the
brokering controls administered by the U.S. Department of State in part
129 of the ITAR. The transfer of defense articles from the ITAR's USML
to the EAR's CCL, for purposes of export controls, does not affect the
list of defense articles that are controlled on the USMIL under the
AECA for purposes of permanent import.
    On January 18, 2011, the President issued Executive Order 13563,
affirming general principles of regulation and directing government
agencies to conduct retrospective reviews of existing regulations. The
revisions made by this rule are part of Commerce's retrospective
regulatory review plan under Executive Order 13563. Commerce's full
plan, completed in August 2011, can be accessed at: http://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.
    This final rule implements amendments to the EAR proposed in BIS's
rule titled ``Commerce Control List: Addition of Items Determined to No
Longer Warrant Control under United States Munitions List Category XIV
(Toxicological Agents) or Category XVIII (Directed Energy Weapons),''
which was published in the Federal Register on June 17, 2015 (RIN 0694-
AF52) (80 FR 34562) (herein ``the June 17 (toxicological agents and
directed energy weapons) rule'').

Dissemination, Detection and Protection ``Equipment'' and Related Items

Public Comments and BIS Responses

    BIS received comments from eight parties in response to the
proposed amendments in the June 17 (toxicological agents and directed
energy weapons) rule that addressed dissemination, detection and
protection ``equipment'' and related items.

ECCN 1A607 (Military Dissemination, Detection, and Protection
``Equipment'')

    Comment: One commenter noted that tear gas and riot control agents
were dropped from proposed USML Category XIV(d), but did not appear in
proposed ECCN 1A607.
    Response: The tear gas and riot control agents removed from USML
Category XIV(d) are now controlled under ECCN 1C607.a.1 through a.6, as
they were proposed to be controlled in BIS's June 17 (toxicological
agents and directed energy weapons) rule. Therefore, no further action
is required.

ECCN 1A607.f (Protection ``Equipment'')

    Comment: One commenter noted that proposed ECCN 1A607.f included
protection ``equipment,'' but did not specifically indicate that it
controlled Chemical Agent Resistant Coatings (CARC). The commenter
recommended that CARC be specifically identified in ECCN 1A607.f or
that the word ``material'' be added so that companies would be more
likely to interpret ECCN 1A607.f to include coatings, such as CARC. In
addition, the commenter recommended that the export controls on CARC be
changed to align more closely with export controls maintained by U.S.
allies, who do not require an export license for CARC to most
destinations. Specifically, the commenter felt that companies familiar
with the European Union military list could become confused, because
the controls in ECCN 1A607.f are similar to those described in ML.7.f,
which does not control CARC. In the event that CARC continues to
require a license to most destinations, the commenter recommended that
all CARC be placed under the export licensing jurisdiction of a single
U.S. Government agency to simplify jurisdictional and/or classification
determinations.
    Response: ECCN 1A607.f indicates that it controls protection
``equipment'' not controlled by USML Category XIV(f) that is
``specially designed'' for military use and for defense against
materials specified by USML XIV(a) or (b) or riot control agents
controlled by ECCN 1C607.a. BIS believes that this control language, as
revised in this final rule to specify ``protective coatings'' (as well
as air conditioning units and protective clothing), is now sufficiently
clear as to leave no doubt that it applies to paintings/coatings such
as CARC. Consequently, the control language used in the June 17
(toxicological agents and directed energy weapons) rule has been
retained in this final rule with only the above-referenced change
(i.e., the

revision of the parenthetical phrase in the introductory text of ECCN
1A607.f to read, as follows: ``including air conditioning units,
protective coatings, and protective clothing.''
    As for the scope of the license requirements that apply to CARC,
all items in ECCN 1A607, including CARC, are subject to NS Column 1 and
RS Column 1 license requirements, which apply to all destinations,
except Canada. While the scope of the EAR license requirements on CARC
is considerably broader than that maintained by some of our allies,
exports of CARC are authorized without a license, under License
Exception STA, for destinations in, or nationals of, Country Group A:5
in Supplement No. 1 to part 740 of the EAR, which currently contains 36
countries. Furthermore, the EAR requirements that apply to the CARC
that were previously controlled under USML Category XIV and are now
controlled under new ECCN 1A607.f represent a significant easing of the
regulatory burden on exporters of such CARC through: (i) Elimination of
some license requirements; (ii) greater availability of license
exceptions; (iii) simpler license application procedures; and (iv)
reduced or eliminated registration fees. With respect to the
commenter's recommendation that all CARC be placed under the export
licensing jurisdiction of a single U.S. Government agency, BIS notes
that the only CARC that continue to be controlled under USML Category
XIV (specifically, in paragraph (f)(7) of USML Category XIV) are those
that have been qualified to one of the following four military
specifications: MIL-PRF-32348, MIL-DTL-64159, MIL-C-46168, or MIL-DTL-
53039. In light of the anticipated benefits of moving certain CARC from
USML Category XIV to new ECCN 1A607 on the EAR's CCL, as described
above, there would appear to be little practical upside to continuing
to control all CARC under the export licensing jurisdiction of a single
U.S. Government agency.
    Comment: One commenter recommended that all items identified in
USML Category XIV(f)(4) for individual protection against chemical and
biological agents specified in USML Category XIV(a) or (b) should be
controlled under new ECCN 1A607.f on the CCL. In addition, the
commenter recommended that all individual protection ``equipment'' and
clothing controlled under new ECCN 1A607.f should be authorized for
export under License Exception BAG under special provisions similar to
those currently applicable to ``personal protective equipment'' (i.e.,
ECCN 1A613.c or .d) in accordance with Section 740.14(h) of the EAR.
    Response: USML Category XIV(f)(4), as set forth in the State
Department's companion rule to this final rule, controls equipment or
items that offer individual or collective protection against items
specified in USML Category XIV(a) or (b), as follows: (1) M53 Chemical
Biological Protective Mask or M50 Joint Service General Purpose Mask
(JSGPM); (2) filter cartridges containing sorbents controlled in USML
Category XIV(f)(4)(iii); (3) ASZM-TEDA carbon; and (4) ensembles,
garments, suits, jackets, pants, boots or socks for individual
protection, and liners for collective protection, that allow no more
than 1% breakthrough of GD, or no more than 2% breakthrough of any
other chemical specified in USML Category XIV(a), when evaluated by
executing the applicable method(s) of testing described in the current
version of Test Operations Procedure (TOP) 08-2-201 (Collective
Protection Novel Closures Testing) or 08-2-501 (Permeation Testing of
Materials with Chemical Agents or Simulants--Swatch Testing) and using
the defined DoD-specific requirements described therein.
    The control criteria in USML Category XIV(f)(4), as described
above, are the result of a review of USML Category XIV, as part of the
Administration's Export Control Reform (ECR) Initiative, to ensure that
it controls only those items that are inherently military, provide the
United States with a critical military or intelligence advantage, or
otherwise warrant control on the USML. In the absence of any compelling
evidence contrary to the results of this review, no change is
contemplated, with respect to these USML Category XIV criteria, at this
time. New ECCN 1A607.f controls ``equipment'' previously controlled
under USML Category XIV(f)(4) or (f)(5) that the President has
determined no longer warrants control on the USML (i.e., protection
``equipment,'' including ``equipment'' for individual protection, not
controlled by USML Category XIV(f) that is ``specially designed'' for
military use and for defense against materials specified by USML XIV(a)
or (b) or riot control agents controlled by ECCN 1C607.a). This final
rule does not expand the scope of new ECCN 1A607.f to control all
``equipment'' for individual protection against chemical and biological
agents specified in USML Category XIV(a) or (b), because this change
would be contrary to the President's determination, based on the
results of the aforementioned review of USML Category XIV (i.e., it
would result in the transfer to the CCL of items that are inherently
military, provide the United States with a critical military or
intelligence advantage, or otherwise warrant control on the USML).
    With respect to the commenter's recommendation that all individual
protection ``equipment'' and clothing controlled under new ECCN 1A607.f
should be authorized for export under License Exception BAG (under
special provisions similar to those currently applicable to ``personal
protective equipment''), this final rule amends the License Exception
BAG provisions in Section 740.14(h) of the EAR to authorize exports,
reexports, or in-country transfers of chemical or biological agent
protective gear consistent with the requirements and restrictions
described therein. In a corresponding change, this final rule also
amends the License Exception TMP provisions in Section 740.9(a)(11) of
the EAR to authorize temporary exports, reexports, or in-country
transfers of chemical or biological agent protective gear consistent
with the requirements and restrictions described therein. These changes
are also intended to make the scope of these license exceptions, as
they apply to chemical or biological agent protective gear controlled
under new ECCN 1A607.f, conform with the scope of the ITAR exemption
for personal protective equipment in Section 123.17 of the ITAR.
    Comment: One commenter noted that neither BIS's June 17
(toxicological agents and directed energy weapons) rule nor State's
companion proposed rule clearly indicated whether filter cartridges
containing sorbents funded by the Department of Defense via contract or
other funding authorization, as proposed to be controlled under USML
Category XIV(n), would be controlled under new ECCN 1A607.f on the CCL
or under USML Category XIV(f) or (n). In addition, the commenter noted
that neither of these proposed rules clearly indicated whether filter
cartridges that meet the requirements of specifications PRF-EA-2251 for
the M61 filter cartridge, but do not contain ASZM-TEDA carbon, would be
controlled under new ECCN 1A605.f or under USML Category XIV(f) or (n).
    Response: Neither of the observations made by the commenter
requires any modification to new ECCN 1A607.f. Filter cartridges
containing developmental sorbents are controlled under USML Category
XIV(f)(4)(ii) if the sorbents were funded by the Department of Defense
via contract or other funding authorization, as specified in USML
Category XIV(n), and none of the

elements in Note 1 to paragraph (n) apply (i.e., the sorbents are
determined to be subject to the EAR via a commodity jurisdiction
determination or they are identified in the relevant Department of
Defense contract or other funding authorization as being developed for
both civil and military applications). The commenter's question
concerning the export licensing jurisdiction status of filter
cartridges reflects the fact that State's companion Category XIV/XVIII
proposed rule did not specifically enumerate (in Category XIV) filter
cartridges containing sorbents controlled under USML Category XIV(n).
USML Category XIV(f)(ii), in State's proposed rule, specified that it
controlled filter cartridges containing sorbents controlled under USML
Category XIV(f)(iii), but the control status of filter cartridges
containing sorbents enumerated in proposed USML Category XIV(n) was not
specifically indicated. Consequently, State's companion Category XIV/
XVIII final rule corrects this oversight by clarifying USML Category
XIV to indicate that it applies to filter cartridges that contain any
of the sorbents specified under USML Category XIV(f)(iii) or (n) and,
in so doing, eliminates the possibility that such filter cartridges
could be controlled under new ECCN 1A607.f on the CCL (except to the
limited extent that sorbents funded by the Department of Defense via
contract or other funding authorization are excluded from USML Category
XIV(n) for a specified period of time, as indicated in Note 3 thereto).
    In response to the commenter's request for clarification concerning
controls on filter cartridges that meet the requirements of
specifications PRF-EA-2251 for the M61 filter cartridge, but do not
contain ASZM-TEDA carbon, their control status also would depend upon
the sorbents that they contain. As indicated above, filter cartridges
that contain any of the sorbents controlled by USML Category XIV (i.e.,
sorbents specified under paragraph (f)(iii) or (n) of Category XIV) are
controlled under USML Category XIV. Otherwise, they are controlled
under new ECCN 1A607.f.

ECCN 1A607.h (Detection/Identification ``Equipment'')

    Comment: One commenter interpreted BIS's June 17 (toxicological
agents and directed energy weapons) rule and State's companion USML
Category XIV/XVIII proposed rule as transferring to new ECCN 1A607.h on
the CCL all detection equipment, previously controlled under USML
Category XIV(f)(2), that is ``specially designed'' for military use for
the detection of agents identified in proposed USML Category XIV(a) or
(b), except for: (1) Detection equipment that is classified or that
relates to classified information; and (2) military detection equipment
developed under a DoD contract or other funding authorization, as
described in proposed USML Category XIV(f)(2) and subject to the
restriction in Note 3 thereto, which indicated that the controls in
paragraph (f)(2) would apply only to controls dated one year (or later)
after the date of publication of State's USML Category XIV final rule.
Note 3 to paragraph (f)(2) was mistakenly included in USML Category
XIV, as described in State's proposed rule; consequently, it does not
appear in State's final rule.
    Response: New ECCN 1A607.h controls ``equipment'' not controlled by
USML Category XIV(f) that is ``specially designed'' for military use
and for the detection or identification of materials specified by USML
Category XIV(a) or (b) or riot control agents controlled by ECCN
1C607.a on the CCL. Because new ECCN 1A607.h indicates that it does not
include any detection equipment that is controlled by USML Category
XIV(f), the scope of the ECCN is necessarily dependent upon the scope
of Category XIV(f), which, in turn, is subject to interpretation by the
U.S. Department of State. Therefore, the Department of State, and not
BIS, is the appropriate U.S. Government agency to confirm whether the
commenter's statement is correct (in whole or in part), as it applies
to the scope of new ECCN 1A607.h and the ``equipment'' previously
controlled under USML Category XIV(f)(2). Consequently, this question
should be addressed, with respect to specific detection ``equipment,''
through the submission of one or more commodity jurisdiction (CJ)
requests to the State Department's Directorate of Defense Trade
Controls (DDTC), consistent with the requirements in the ITAR.

ECCN 1A607.k (Medical Countermeasures)

    Comment: One commenter noted that items controlled under proposed
new ECCN 1A607.k (military medical countermeasures ``equipment''), and
related ``technology'' controlled under proposed new ECCN 1E607.a,
would not be eligible for export/reexport under the License Exception
GOV provisions in Section 740.11(d), International Inspections under
the Chemical Weapons Convention (CWC), to destinations located outside
of Country Group A:5 in Supplement No. 1 to part 740 of the EAR.
    Response: The commenter is correct in noting that ``equipment'' in
new ECCN 1A607.k and related ``technology'' in new ECCN 1E607.a are not
eligible for export under the License Exception GOV provisions in
Section 740.11(d) of the EAR, except to destinations located in Country
Group A:5. This restriction, which is described in Section
740.11(d)(2)(iii) of the EAR, was implemented as part of BIS's April 16
(initial implementation) rule in which the License Exception GOV
provisions in Section 740.11 of the EAR were revised. Among the License
Exception GOV provisions that were affected by these revisions were
those authorizing exports and reexports to the Organization for the
Prohibition of Chemical Weapons (OPCW) and exports and reexports by the
OPCW for official international inspection and verification use under
the terms of the CWC. Under the OPCW authorization, as revised, Section
740.11(d)(2)(iii) of the EAR prohibits exports and reexports of items
controlled under ``600 series'' ECCNs on the CCL to countries not
listed in Country Group A:5. Country Group A:5 currently consists of 36
countries, as established by BIS's April 16 (initial implementation)
rule, which became effective on October 15, 2013. The scope of the OPCW
authorization in License Exception GOV was the result of extensive U.S.
Government interagency review and discussion. Furthermore, the scope of
eligible countries for the OPCW authorization (i.e., 36 countries), as
established by BIS's April 16 (initial implementation) rule, was
initially broader than the country scope that was authorized under the
License Exception GOV provisions for cooperating governments, as
described in Section 740.11(c) of the EAR, which then authorized
exports and reexports to 27 cooperating governments and agencies of the
North Atlantic Treaty Organization (NATO). The country scope of the
cooperating governments authorization under License Exception GOV was
subsequently expanded, by BIS's Wassenaar Arrangement (WA) 2014 Plenary
final rule (98 FR 29432, May 21, 2015), to include 41 cooperating
governments and agencies of NATO. Currently, the country scope of the
cooperating governments and OPCW authorizations under License Exception
GOV are roughly equivalent (i.e., the former applies to four more
countries than the latter--two of those countries are CWC States
Parties and one is a special administrative region of a State Party).
In light of the recent changes to the License Exception GOV provisions
described above, BIS does

not have any immediate plans to address possible revisions to the
country scope of the OPCW authorization. BIS also considers any such
action to be outside the scope of this rulemaking, which does not
specifically address EAR requirements involving the CWC and the OPCW.

ECCN 1A607.x (``Parts,'' ``Components,'' ``Accessories,'' and
``Attachments'')

    Comment: One commenter noted that proposed new ECCN 1A607.x
indicated that it controlled ``parts,'' ``components,''
``accessories,'' and ``attachments'' ``specially designed'' for the
``equipment'' described in proposed ECCN 1A607.e, .f, .g, or .j.
However, the commenter also noted that ``parts,'' ``components,''
``accessories,'' and ``attachments'' ``specially designed'' for the
detection/identification ``equipment'' described in proposed ECCN
1A607.h were not included in proposed ECCN 1A607.x. As a result, the
commenter questioned whether any ``parts,'' ``components,''
``accessories,'' and ``attachments'' ``specially designed'' for
detection/identification ``equipment'' that might be removed from the
USML, as a result of the proposed revisions to USML Category XIV(f),
would be controlled under proposed new ECCN 1A607 on the CCL (e.g.,
under proposed ECCN 1A607.x).
    Response: The commenter is correct in noting that proposed new ECCN
1A607.x specified only those ``parts,'' ``components,''
``accessories,'' and ``attachments'' ``specially designed'' for the
``equipment'' described in ECCN 1A607.e, .f, .g, or .j, and not those
``parts,'' ``components,'' ``accessories,'' and ``attachments''
``specially designed'' for detection/identification ``equipment''
described in ECCN 1A607.h. This final rule corrects that oversight. New
ECCN 1A607.x, as added to the CCL by this final rule, indicates that it
controls ``parts,'' ``components,'' ``accessories,'' and
``attachments'' that are ``specially designed'' for a commodity
controlled by ECCN 1A607.e, .f, .g, .h, or .j or for a defense article
controlled by USML Category XIV(f) and that are not enumerated or
otherwise described elsewhere in the USML.

General Comments on Dissemination, Detection and Protection
``Equipment''

    Comment: One commenter noted that the BIS and State Category XIV/
XVIII proposed rules omitted coverage of the Wassenaar Munitions List
(WAML) items in WAML 7.a (Biological agents or radioactive materials
adapted for use in war to produce casualties in humans and animals,
degrade equipment, or damage crops or the environment).
    Response: The items noted by the commenter are not identified in
any of the new ``600 series'' ECCNs described in BIS's June 17
(toxicological agents and directed energy weapons) rule, but they are
clearly enumerated under USML Category XIV in State's companion
proposed rule. Proposed USML Category XIV(b)(1)(ii) identifies specific
biological agents that have been militarized, as described in USML
Category XIV(b)(1)(i), and proposed USML Category XIV(b)(2) describes
biological agents identified under ECCN 1C351, 1C353, or 1C354 on the
EAR's CCL that have been militarized, as described in USML Category
XIV(b)(2)(i) and (b)(2)(ii). These defense articles are identified in
the USML Category XIV amendments contained in State's companion rule to
this final rule.
    Comment: One commenter noted that the following two Australia Group
(AG) controlled items were not identified in either the BIS or State
Category XIV/XVIII proposed rules:
    (1) Valves with a closure element designed to be interchangeable,
as listed under 6.b on the AG Control List of Dual-Use Chemical
Manufacturing Facilities and Equipment); and (2) nose-only exposure
apparatus, as listed under 8.b on the AG Control List of Dual-Use
Biological Equipment.
    Response: The commenter accurately noted that neither of the two
items were identified in the BIS and State Category XIV/XVIII proposed
rules. However, because these items are identified as dual-use items on
the AG common control lists indicated above, neither item is within the
scope of this rulemaking. The valves, described under 6.b on the AG
chemical manufacturing facilities and equipment control list, are
currently controlled under ECCN 2B350.g.2 on the CCL. The nose-only
exposure apparatus, described under 8.b on the AG biological equipment
common control list, was recently added to this AG control list and is
currently controlled under ECCN 2B352.h based on a recent update of AG
listed items on the CCL (see 81 FR 36458, June 7, 2016).
    Comment: One commenter indicated that some of the proposed new
``600 series'' ECCNs in BIS's June 17 (toxicological agents and
directed energy weapons) rule maintained unilateral controls on certain
items that were proposed to be transferred to the CCL from USML
Category XIV.
    Response: All the items described in the new ``600 series'' ECCNs
created by this final rule were previously controlled on the USML under
the ITAR and were added to these new ECCNs on the CCL only after the
President determined that these items no longer warrant control on the
USML for the reasons set forth above.

Changes Made by This Rule to Controls on Certain Dissemination,
Detection and Protection ``Equipment'' and Related Items Previously
Controlled Under USML Category XIV

    This final rule creates five new ``600 series'' ECCNs in CCL
Category 1 (ECCNs 1A607, 1B607, 1C607, 1D607, and 1E607) that clarify
the EAR controls applicable to certain dissemination, detection and
protection ``equipment'' and related items that the President has
determined no longer warrant control under USML Category XIV. Terms
such as ``part,'' ``component'' ``accessories,'' ``attachments,'' and
``specially designed'' are applied in the same manner in this rule as
those terms are defined in Section 772.1 of the EAR. In addition, to
assist exporters in determining the control status of their items, a
``Specially Designed'' Decision Tool and a CCL Order of Review Decision
Tool are available on the BIS Web site at: http://www.bis.doc.gov/index.php/decision-tree-tools.

New ECCN 1A607 Military dissemination ``equipment'' for riot control
agents, military detection and protection ``equipment'' for
toxicological agents (including chemical, biological, and riot
control agents), and related commodities.

    In new ECCN 1A607, paragraphs .a through .d, paragraph .i, and
paragraphs .l through .w are reserved. Paragraph .e of ECCN 1A607
controls ``equipment'' ``specially designed'' for military use and for
the dissemination of any of the riot control agents controlled in ECCN
1C607.a. Paragraph .f of ECCN 1A607 controls protection ``equipment''
``specially designed'' for military use and for defense against either
materials controlled by USML Category XIV(a) or (b) or any of the riot
control agents in new ECCN 1C607.a. Paragraph .g of ECCN 1A607 controls
decontamination ``equipment'' not controlled by USML Category XIV(f)
that is ``specially designed'' for military use and for the
decontamination of objects contaminated with materials controlled by
USML Category XIV(a) or (b). Paragraph .h controls ``equipment'' not
controlled by USML Category XIV(f) that is ``specially designed'' for
military use and for the detection or identification of either
materials specified by USML Category XIV(a) or (b) or riot control
agents controlled by new ECCN 1C607.a. Paragraph .j controls
``equipment'' ``specially

designed'' to: (i) Interface with a detector, shelter, vehicle, vessel,
or aircraft controlled by the USML or a ``600 series'' ECCN; and (ii)
collect and process samples of articles controlled in USML Category
XIV(a) or (b). Paragraph .k controls medical countermeasures that are
``specially designed'' for military use (including pre- and post-
treatments, antidotes, and medical diagnostics) and ``specially
designed'' to counter chemical agents controlled by USML Category
XIV(a). Paragraph .x controls ``parts,'' ``components,''
``accessories,'' and ``attachments'' that are ``specially designed''
for a commodity controlled under ECCN 1A607.e, .f, .g, .h, or .j or a
defense article controlled in USML Category XIV(f) and that are not
enumerated or otherwise described elsewhere in the USML.

New ECCN 1B607 Military test, inspection, and production
``equipment'' and related commodities ``specially designed'' for the
``development,'' ``production,'' repair, overhaul, or refurbishing
of commodities identified in ECCN 1A607 or 1C607, or defense
articles enumerated or otherwise described in USML Category XIV.

    In new ECCN 1B607, paragraph .a controls ``equipment,'' not
including incinerators, that is ``specially designed'' for the
destruction of chemical agents controlled by USML Category XIV(a).
Paragraph .b of ECCN 1B607 controls test facilities and ``equipment''
that are ``specially designed'' for military certification,
qualification, or testing of commodities controlled by new ECCN
1A607.e, .f, .g, .h, or .j or by USML Category XIV(f), except for
XIV(f)(1). Paragraph .c of ECCN 1B607 controls tooling and
``equipment'' ``specially designed'' for the ``development,''
``production,'' repair, overhaul, or refurbishing of commodities
controlled under new ECCN 1A607.e, .f, .g, .h, or .j or USML Category
XIV(f). Paragraphs .d through .w are reserved. Paragraph .x controls
``parts,'' ``components,'' ``accessories,'' and ``attachments,'' not
enumerated or otherwise described elsewhere in the USML, that are
``specially designed'' for a commodity controlled by ECCN 1B607.b or .c
or for a defense article controlled by USML Category XIV(f).
    As indicated above, ECCN 1B607.b does not control test facilities
and ``equipment'' that are ``specially designed'' for military
certification, qualification, or testing of commodities and are
enumerated or otherwise described in USML Category XIV(f)(1), as set
forth in State's companion rule to this final rule (e.g., see the
equipment in USML Category XIV(f)(1)(ii) that is ``specially designed''
for testing the articles controlled in paragraph (a), (b), (c), (e), or
(f)(4) of USML Category XIV). In addition to the test facilities and
``equipment'' controlled by ECCN 1B607.b, see the tooling and
``equipment'' classified under ECCN 2B350 or 2B352 for producing the
chemical/biological agents, precursors, or defoliants described in USML
Category XIV(a), (b), (c), or (e). The EAR also control tooling and
``equipment'' to produce the antibodies/polynucleotides and vaccines
described in USML Category XIV(g) and (h), respectively, as follows:
lab ``equipment'' designated as EAR99 under the EAR; biological dual-
use ``equipment'' (including protective ``equipment'') classified under
ECCN 2B352; and EAR-controlled biological systems for making vaccines
(involving the use of mice, rabbits, etc.).

New ECCN 1C607 Tear gases, riot control agents and materials for the
detection and decontamination of chemical warfare agents.

    New ECCN 1C607.a controls specified tear gases and riot control
agents. Paragraph .b of ECCN 1C607 controls ``biopolymers'' not
controlled by USML Category XIV(g) that are ``specially designed'' or
processed for the detection or identification of chemical warfare (CW)
agents specified by USML Category XIV(a) and the cultures of specific
cells used to produce them. Paragraph .c controls specified
``biocatalysts'' and biological systems that are not controlled by USML
Category XIV(g) and are ``specially designed'' for the decontamination
or degradation of CW agents specified by USML Category XIV(a).
Paragraph .d controls chemical mixtures not controlled by USML Category
XIV(f) that are ``specially designed'' for military use for the
decontamination of objects contaminated with materials specified by
USML Category XIV(a) or (b).

New ECCN 1D607 ``Software'' ``specially designed'' for the
``development,'' ``production,'' operation, or maintenance of items
controlled by 1A607, 1B607 or 1C607.

    New ECCN 1D607.a controls ``software'' ``specially designed'' for
the ``development,'' ``production,'' operation, or maintenance of items
controlled by ECCN 1A607, 1B607 or 1C607. Paragraph .b of ECCN 1D607 is
reserved.

New ECCN 1E607 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul, or refurbishing of items controlled by ECCN 1A607, 1B607,
1C607, or 1D607.

    New ECCN 1E607.a controls ``technology'' ``required'' for the
``development,'' ``production,'' operation, installation, maintenance,
repair, overhaul, or refurbishing of items controlled by ECCN 1A607,
1B607, 1C607, or 1D607. Paragraph .b of ECCN 1E607 is reserved.
    Amendments to License Exceptions BAG and TMP related to Individual
Protection ``Equipment'' in ECCN 1A607.f.
    In response to public comments recommending that all individual
protection ``equipment'' and clothing controlled under new ECCN 1A607.f
should be authorized for export under License Exception BAG (under
special provisions similar to those currently applicable to ``personal
protective equipment''), this final rule amends the License Exception
BAG provisions in Section 740.14(h) of the EAR to authorize exports,
reexports, or in-country transfers of chemical or biological agent
protective gear consistent with the requirements and restrictions
described therein. In a corresponding change, this final rule also
amends the License Exception TMP provisions in Section 740.9(a)(11) of
the EAR to authorize temporary exports, reexports, or in-country
transfers of chemical or biological agent protective gear consistent
with the requirements and restrictions described therein. The
amendments to License Exceptions BAG and TMP also change the
requirements for Afghanistan to be consistent with those of the
majority of other Country Group D:5 destinations (i.e., the U.S. person
authorized to use the license exception must be affiliated with the
U.S. Government and be traveling on official business or traveling in
support of a U.S. Government contract). The same requirement applies to
the use of these license exception provisions for Iraq, also a D:5
country, with the additional option that the U.S. person must be
traveling to Iraq under a direct authorization by the Government of
Iraq and engaging in activities for, on behalf of, or at the request
of, the Government of Iraq. These amendments are also intended to
ensure that the scope of these license exceptions, as they apply to
chemical or biological agent protective gear controlled under new ECCN
1A607.f, conforms with the scope of the ITAR exemption for personal
protective equipment in Section 123.17 of the ITAR (e.g., by correcting
the provisions for Afghanistan, as described above, to be consistent
with those of the majority of other Country Group D:5 destinations).

Tooling, Production ``Equipment,'' Test and Evaluation ``Equipment,''
Test Models and Other Articles Related to Directed Energy Weapons

Public Comments and BIS Responses

    BIS received comments from two parties in response to the proposed
amendments in the June 17 (toxicological agents and directed energy
weapons) rule related to tooling, production ``equipment,'' test, and
evaluation ``equipment,'' test models and other articles related to
directed energy weapons.

General Comments on Items Related to Directed Energy Weapons

    Comment: One commenter noted that the BIS and State Category XIV/
XVIII proposed rules omitted coverage of the Wassenaar Munitions List
(WAML) items in WAML 19.f (``Laser'' systems ``specially designed'' to
cause permanent blindness to unenhanced vision).
    Response: The items noted by the commenter are not identified in
any of the new ``600 series'' ECCNs described in BIS's June 17
(toxicological agents and directed energy weapons) rule, but they are
clearly enumerated under USML Category XVIII in State's companion
proposed rule. Proposed USML Category XVIII(a) identifies directed
energy weapons (DEW) systems or ``equipment'' that, as their sole or
primary purpose, cause permanent or flash blindness. These articles are
identified in the USML Category XVIII amendments contained in State's
companion rule to this final rule.
    Comment: One commenter indicated that some of the proposed new
``600 series'' ECCNs in BIS's June 17 (toxicological agents and
directed energy weapons) rule maintained unilateral controls on certain
items that were proposed to be transferred to the CCL from the USML
Category XVIII.
    Response: All the items described in the new ``600 series'' ECCNs
created by this final rule were previously controlled on the USML under
the ITAR and were added to these new ECCNs on the CCL only after the
President determined that these items no longer warrant control on the
USML for the reasons set forth above.

Changes Made by This Rule to Controls on Certain Tooling, Production
``Equipment,'' Test and Evaluation ``Equipment'' and Test Models
Previously Controlled Under USML Category XVIII

    This rule creates three new ``600 series'' ECCNs in CCL Category 6
(ECCNs 6B619, 6D619 and 6E619) that clarify the EAR controls applicable
to certain tooling, production ``equipment,'' test and evaluation
``equipment,'' test models, and related articles for Directed Energy
Weapons (DEWs) that the President has determined no longer warrant
control under USML Category XVIII. Terms such as ``part,''
``component'' ``accessories,'' ``attachments,'' and ``specially
designed'' are applied in the same manner in this rule as those terms
are defined in Section 772.1 of the EAR. In addition, to assist
exporters in determining the control status of their items, a
``Specially Designed'' Decision Tool and a CCL Order of Review Decision
Tool are available on the BIS Web site at: http://www.bis.doc.gov/index.php/decision-tree-tools.

New ECCN 6B619 Test, inspection and production ``equipment,'' and
related commodities, ``specially designed'' for the ``development,''
``production,'' repair, overhaul, or refurbishing of commodities
enumerated or otherwise described in USML Category XVIII.

    New ECCN 6B619.a controls tooling, templates, jigs, mandrels,
molds, dies, fixtures, alignment mechanisms, and test ``equipment'' not
enumerated or otherwise described in USML Category XVIII and not
elsewhere specified on the USML that are ``specially designed'' for the
``development,'' ``production,'' repair, overhaul, or refurbishing of
commodities controlled by USML Category XVIII. The commodities that are
controlled under new ECCN 6B619.a are used to produce directed energy
weapons (including non-lethal directed energy weapons, such as active
denial systems) and are similar to commodities that are in operation in
a number of other countries, some of which are not allies of the United
States or members of multinational export control regimes. Research and
development is currently underway to determine the possible uses of
such commodities (e.g., to protect the Earth from asteroids, or for
perimeter security and crowd control). Possession of such commodities
does not confer a significant military advantage on the United States
and, therefore, the inclusion of such commodities on the CCL would be
appropriate.
    Paragraphs .b through .w of ECCN 6B619 are reserved. Paragraph .x
controls ``parts,'' ``components,'' ``accessories,'' and
``attachments'' ``specially designed'' for a commodity subject to
control under paragraph .a of this ECCN and not enumerated or otherwise
described in USML Category XVIII and not elsewhere specified on the
USML.

New ECCN 6D619 ``Software'' ``specially designed'' for the
``development,'' ``production,'' operation or maintenance of
commodities controlled by 6B619.

    New ECCN 6D619 controls ``software'' ``specially designed'' for the
``development,'' ``production,'' operation or maintenance of
commodities controlled by ECCN 6B619. Inclusion of this ``software'' on
the CCL is appropriate, because it is limited to ``software''
``specially designed'' for ECCN 6B619 commodities and does not include
any ``software'' for items specifically enumerated or otherwise
described on the USML.

New ECCN 6E619 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul or refurbishing of commodities controlled by 6B619 or
``software'' controlled by 6D619.

    New ECCN 6E619 controls ``technology'' ``required'' for the
``development,'' ``production,'' operation, installation, maintenance,
repair, overhaul or refurbishing of commodities controlled by ECCN
6B619, or ``software'' controlled by 6D619. Inclusion of this
``technology'' on the CCL is appropriate, because it is limited to
``technology'' ``required'' for ECCN 6B619 commodities and does not
include any ``technology'' for items specifically enumerated or
otherwise described on the USML.

Applicable Controls for the New ``600 Series'' ECCNs Created by This
Rule

    Pursuant to the framework established in the April 16 (initial
implementation) rule, detection and protection ``equipment'' and
related commodities classified under ECCN 1A607; related test,
inspection and production ``equipment'' classified under ECCN 1B607;
tear gases, riot control agents and related commodities classified
under ECCN 1C607 (except for items listed in ECCN 1C607.a.10, .a.11,
.a.12, or a.14, all of which are specifically excluded from WAML
Category 7 by Note 1 thereto); related ``software'' classified under
ECCN 1D607 (except ``software'' for items listed in ECCN 1C607.a.10,
.a.11, .a.12, or a.14); and related ``technology'' classified under
ECCN 1E607 (except ``technology'' for items listed in ECCN 1C607.a.10,
.a.11, .a.12, or a.14 and 1D607 ``software'' therefor) are subject to
the licensing policies that apply to items controlled for national
security (NS) reasons, as described in Sec.  742.4(b)(1)--specifically,
NS Column 1 controls. The same level of NS controls and licensing
policies also apply to the directed energy weapons items that are
controlled under the three new ECCNs (i.e., test,

inspection, and production ``equipment'' classified under ECCN 6B619;
related ``software'' classified under ECCN 6D619; and related
``technology'' classified under ECCN 6E619) that this rule adds to
Category 6 of the CCL. In addition, all the items that are controlled
under the new ECCNs created by this rule are subject to the regional
stability (RS) licensing policies set forth in Sec.  742.6(a)(1), i.e.,
RS Column 1, as well as antiterrorism (AT Column 1) and United Nations
(UN) controls.
    Also, in accordance with Sec. Sec.  742.4(b)(1) and 742.6(b)(1) of
the EAR, exports and reexports of ``600 series'' items controlled for
NS or RS reasons will be reviewed consistent with United States arms
embargo policies in Sec.  126.1 of the ITAR, if destined to a country
listed in Country Group D:5 of Supplement No. 1 to part 740 of the EAR.
All items controlled for NS or RS reasons, as set forth in this final
rule, are subject to this licensing policy.

Effects of This Final Rule

    BIS believes that the principal effect of this final rule, when
considered in the context of similar rules being published as part of
the ECR, will be to provide greater flexibility for exports and
reexports to NATO member countries and other multiple-regime-member
countries of items the President determines no longer warrant control
on the USML. This greater flexibility is in the form of: the
application of the EAR's de minimis threshold principle for items
constituting less than a de minimis amount of controlled U.S.-origin
content in foreign made items; the availability of license exceptions,
particularly License Exceptions ``Servicing and Replacement of Parts
and Equipment'' (RPL) and ``Strategic Trade Authorization'' (STA); the
elimination of requirements for manufacturing license agreements and
technical assistance agreements in connection with exports of
technology; and a reduction in, or the elimination of, exporter and
manufacturer registration requirements and associated registration
fees. Some of these specific effects are discussed in more detail,
below.

De Minimis

    The April 16 (initial implementation) rule imposed certain unique
de minimis requirements on items controlled under the new ``600
series'' ECCNs. Section 734.3 of the EAR provides, inter alia, that,
under certain conditions, items made outside the United States that
incorporate items subject to the EAR are not subject to the EAR if they
do not exceed a ``de minimis'' percentage of controlled U.S. origin
content. Under Section 734.4 of the EAR, as amended by the April 16
(initial implementation) rule, there is no eligibility for de minimis
treatment for a foreign-made item that incorporates U.S.-origin ``600
series'' items when the foreign-made item is destined for a country
that is subject to a U.S. arms embargo, i.e., a country listed in
Country Group D:5 of Supplement No. 1 to part 740 of the EAR. Items
controlled under the new ``600 series'' ECCNs created by this rule are
eligible for de minimis treatment under the EAR, provided that the
foreign-made items into which they are incorporated are not destined
for a country listed in Country Group D:5. In contrast, the AECA does
not permit the ITAR to have a de minimis treatment for USML-listed
items, regardless of the significance or insignificance of the U.S.-
origin content or the percentage of U.S.-origin content in the foreign-
made item (i.e., USML-listed items remain subject to the ITAR when they
are incorporated abroad into a foreign-made item, regardless of either
of these factors).

Use of License Exceptions

    The April 16 (initial implementation) rule imposed certain
restrictions on the use of license exceptions for items controlled
under ``600 series'' ECCNs on the CCL. The general restrictions that
apply to the use of license exceptions for such items are described in
Sec.  740.2(a)(13) of the EAR. The EAR provisions that describe the
requirements specific to individual license exceptions contain
additional restrictions on the use of license exceptions for such
items.
    For example, this rule authorizes limited License Exception STA
availability for the new ``600 series'' ECCNs contained herein. None of
the items controlled under these new ECCNs are eligible for the STA
``controls of lesser sensitivity'' described in Sec.  740.20(c)(2) of
the EAR. Instead, STA eligibility for all such items is limited to the
destinations listed in Sec.  740.20(c)(1) of the EAR (i.e., Country
Group A:5 destinations indicated in Supplement No. 1 to part 740 of the
EAR). In addition, such items must be for: (1) ultimate end-use by a
person of a type specified in Sec.  740.20(b)(3)(ii) of the EAR (i.e.,
the armed forces, police, paramilitary, law enforcement, customs,
correctional, fire, or a search and rescue agency of a government of
one of the countries listed in Country Group A:5 or the United States
Government); or (2) the ``development,'' ``production,'' operation
installation, maintenance, repair, overhaul, or refurbishing of an
item, in one of the countries listed in Country Group A:5 or the United
States, that will ultimately be used by any such government agencies,
the United States Government, or by a person in the United States. The
use of License Exception STA also may be authorized, under certain
circumstances described in Sec.  740.20(b)(3)(ii)(C), where the U.S.
Government has otherwise authorized the ultimate end-use under a
license.
    None of the items controlled under the new ``600 series'' ECCNs
created by this rule are treated as ``end items'' for purposes of
License Exception STA and, therefore, such items are not subject to the
License Exception STA eligibility request requirements in Sec.
740.20(g) of the EAR.
    Items controlled under new ECCN 1B607 or 6B619 are also eligible
for License Exception LVS (limited value shipments) up to a value of
$1,500, TMP (temporary exports), and RPL (servicing and replacement
parts). License Exceptions TMP and RPL also are available for items
controlled under new ECCN 1A607. In addition, special provisions in
License Exception TMP (see Sec.  740.9(a)(11) of the EAR) and License
Exception BAG (baggage) (see Sec.  740.14(h) of the EAR), as amended by
this final rule, authorize exports, reexports, or in-country transfers
of certain protection ``equipment'' described in ECCN 1A607.f.
    BIS believes that the restrictions that apply to the use of license
exceptions for the items in the new ``600 series'' ECCNs represents an
overall reduction from the level of restrictions that previously
applied to such items on the USML. This is particularly true with
respect to exports of such items to NATO members and multiple-regime
member countries.

Alignment With the Wassenaar Arrangement Munitions List

    Since the beginning of ECR, the Administration has stated that the
reforms will be consistent with the United States' obligations to the
multilateral export control regimes. Accordingly, the Administration
has, in this final rule, exercised its national discretion to
implement, clarify, and, to the extent feasible, align its controls
with those of the regimes. In this rule, new ECCNs 1A607 and 1C607
implement, to the extent possible, the controls in WAML Category 7; new
ECCNs 1B607 and 6B619 implement, to the extent possible, the controls
in WAML Category 18 for production ``equipment;'' new ECCNs 1D607 and
6D619 implement, to the extent possible, the controls in WAML

Category 21 for ``software;'' and new ECCNs 1E607 and 6E619 implement,
to the extent possible, the controls in WAML Category 22 for
``technology.''

Export Administration Act

    Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March
8, 2013, 78 FR 16129 (March 13, 2013), and as extended by the Notice of
August 7, 2015 (80 FR 48233 (Aug. 11, 2015), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.). BIS continues to carry
out the provisions of the Export Administration Act, as appropriate and
to the extent permitted by law, pursuant to Executive Order 13222 as
amended by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``significant regulatory
action,'' although not economically significant, under Executive Order
12866. Accordingly, the rule has been reviewed by the Office of
Management and Budget (OMB).
    2. Notwithstanding any other provision of law, no person is
required to respond to, nor is any person subject to a penalty for
failure to comply with, a collection of information, subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.) (PRA), unless that collection of information displays a currently
valid OMB control number. This final rule affects the following
approved collections: Simplified Network Application Processing System
(control number 0694-0088), which includes, among other things, license
applications; License Exceptions and Exclusions (0694-0137);
recordkeeping (0694-0096); export clearance (0694-0122); and the
Automated Export System (0607-0152). The discussion, below, is intended
to provide a general overview of possible burden changes as a result of
all the ECR rules published by BIS, and not just this final rule, which
affects items previously controlled under USML Category XIV or XVIII.
No changes in burden for any of these collections is anticipated at
this time, other than as indicated in the discussion, below.
    As stated in the proposed rule published on July 15, 2011 (76 FR
41958) (the ``July 15 proposed rule''), BIS initially estimated that
the combined effect of all rules to be published, adding items to the
EAR that would be removed from the ITAR as part of the Administration's
Export Control Reform Initiative, would increase the number of license
applications to be submitted to BIS by approximately 16,000 annually,
resulting in an increase in burden hours of 5,067 (16,000 transactions
at 17 minutes each) under control number 0694-0088. As the review of
the USML has progressed, the interagency group has gained more specific
information about the number of items that would come under BIS
jurisdiction and whether those items would be eligible for export under
license exception. As of June 21, 2012, BIS revised its estimate to
reflect an increase in license applications of 30,000 annually,
resulting in an increase in burden hours of 8,500 (30,000 transactions
at 17 minutes each) under control number 0694-0088. BIS continues to
believe that its revised estimate is accurate. Notwithstanding this
increase in license applications under the EAR, the net burden that
U.S. export controls impose on U.S. exporters is expected to go down,
as described below, as a result of the transfer of less sensitive
military items to the jurisdiction of the Department of Commerce, under
the EAR, and the application of the license exceptions and other
provisions in the EAR that are described in this final rule.
    As implemented by this rule, certain dissemination, detection and
protection ``equipment'' and related articles currently controlled
under USML Category XIV in the ITAR and certain tooling, production
``equipment,'' test and evaluation ``equipment,'' test models and
related articles currently controlled under USML Category XVIII of the
ITAR are now subject to the licensing jurisdiction of the Department of
Commerce under the EAR and its CCL, and also are eligible for certain
license exceptions, including License Exception STA. For example, items
controlled under new ECCN 1A607, 1B607, 1C607, 1D607, 1E607, 6B619,
6D619, or 6E619 are now eligible under certain provisions of License
Exception STA and do not need a determination of eligibility as
described in Sec.  740.20(g) of the EAR. BIS believes that the
increased use of License Exception STA resulting from the combined
effect of all rules to be published, adding items to the EAR that would
be removed from the ITAR as part of the Administration's Export Control
Reform Initiative, would increase the burden associated with control
number 0694-0137 by about 23,858 hours (20,450 transactions at 1 hour
and 10 minutes each).
    BIS expects that this increase in burden hours under the EAR will
be more than offset by a reduction in the burden hours associated with
currently approved collections related to the ITAR. With few
exceptions, most exports of the dissemination, detection and protection
``equipment'' and related articles and the tooling, production
``equipment,'' test and evaluation ``equipment,'' test models and
related articles that this rule adds to the CCL previously required
State Department authorization, even when destined to NATO member
states and other close allies. In addition, the exports of
``technology'' necessary to produce such items in the inventories of
the United States and its NATO and other close allies previously
required State Department authorization. Under the EAR, as implemented
by this rule, such ``technology'' is now eligible for export to NATO
member states and other close allies under License Exception STA,
unless otherwise specifically excluded.
    The anticipated reduction in burden hours will particularly impact
exporters of ``parts'' and ``components'' that are no longer be subject
to the ITAR, because, with few exceptions, the ITAR exempt from license
requirements only exports to Canada. Most exports of such ``parts'' and
``components,'' even when destined to NATO and other close allies,
previously required State Department authorization. Under the EAR, as
implemented by this rule, a small number of low-level ``parts'' and
``components'' do not require a license to most destinations, while
most other ``parts'' and ``components'' identified under the new ``600
series'' ECCNs are eligible for export to NATO and other close allies
under License Exception STA.
    Use of License Exception STA imposes a paperwork and compliance
burden because, for example, exporters must furnish information about
the item that is being exported to the consignee and obtain from the
consignee an acknowledgement and commitment to comply with the
requirements of the EAR. However, the Administration believes that
complying with the requirements of STA is likely to be less

burdensome than applying for licenses. For example, under License
Exception STA, a single consignee statement can apply to an unlimited
number of products, need not have an expiration date and need not be
submitted to the government in advance for approval. Suppliers with
regular customers can tailor a single statement and assurance to match
their business relationship, rather than applying repeatedly for
licenses with every purchase order, to supply allied and, in some
cases, U.S. forces with routine replacement parts and components.
    Even in situations in which a license is required under the EAR,
the burden likely will be reduced, compared to the previous license
requirement under the ITAR. In particular, license applications for
exports of ``technology'' controlled by ECCN 1E607 or 6E619 are likely
to be less complex and burdensome than the authorizations required to
export ITAR-controlled ``technology,'' i.e., Manufacturing License
Agreements and Technical Assistance Agreements.
    3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
    4. The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., generally requires an agency to prepare an initial
regulatory flexibility analysis (IRFA) for any rule subject to the
notice and comment rulemaking requirements under the Administrative
Procedure Act (5 U.S.C. 553) or any other statute, unless the agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities. Under section 605(b) of the
RFA, however, if the head of an agency certifies that a rule will not
have a significant impact on a substantial number of small entities,
the RFA does not require the agency to prepare a regulatory flexibility
analysis. Accordingly, pursuant to section 605(b), the Chief Counsel
for Regulation, Department of Commerce, has certified to the Chief
Counsel for Advocacy, Small Business Administration, that this proposed
rule, if promulgated, will not have a significant impact on a
substantial number of small entities. The rationale for this
certification is as follows.

Number of Small Entities

    Although BIS does not collect data on the size of entities that
apply for, and are issued, export licenses and is, therefore, unable to
estimate the exact number of small entities--as defined by the Small
Business Administration's regulations implementing the RFA--BIS
acknowledges that some small entities may be affected by this proposed
rule.

Economic Impact

    The amendments set forth in this rule are part of the
Administration's ECR initiative, which seeks to revise the USML to be a
positive control list--one that does not use generic, catch-all control
text to describe items subject to the ITAR--and to move some items that
the President has determined no longer warrant control under the ITAR
to control under the EAR and its CCL. Such items, along with certain
military items currently identified on the CCL (most of which are
identified on the WAML), will be controlled under new ``600 series''
ECCNs on the CCL. In addition, certain other items currently on the CCL
will move from existing ECCNs to the new ``600 series'' ECCNs.
    This rule addresses certain dissemination, detection and protection
``equipment'' and related articles previously enumerated or otherwise
described in USML Category XIV (Toxicological Agents, Including
Chemical Agents, Biological Agents, and Associated Equipment) and
certain tooling, production ``equipment,'' test and evaluation
``equipment,'' test models and related articles previously enumerated
or otherwise described in USML Category XVIII (Directed Energy
Weapons). Most toxicological agents (i.e., chemical and biological
agents) and associated equipment and all Directed Energy Weapons (DEWs)
systems ``specially designed'' or modified for military applications,
equipment ``specially designed'' or modified to detect, identify or
defend against such systems, and ``specially designed'' ``parts,''
``components,'' ``accessories'' and ``attachments'' for such systems or
equipment remain on the USML. However, many other ``parts'' and
``components'' are now subject to the EAR (as items described in ECCN
1A607.x, 1B607.x, or 6B619.x), unless specifically enumerated or
otherwise described on the USML. Many of these ``parts'' and
``components'' are more likely, than the USML articles described above,
to be produced by small businesses. In addition, officials of the
Department of State have informed BIS that license applications for
such ``parts'' and ``components'' represent a high percentage of the
license applications for USML articles reviewed by that department.
Changing the jurisdictional status of certain Category XIV and Category
XVIII items will reduce the burden on small entities (and other
entities as well) through: (i) Elimination of some license
requirements; (ii) greater availability of license exceptions; (iii)
simpler license application procedures; and (iv) reduced or eliminated
registration fees.
    Moreover, ``parts'' and ``components'' that are controlled under
the ITAR remain under ITAR control when incorporated into foreign-made
items, regardless of the significance or insignificance of the item.
This discourages foreign buyers from incorporating such U.S. content.
The availability of de minimis treatment under the EAR, for those items
that are no longer controlled under the ITAR, may reduce the
disincentive for foreign manufacturers to purchase U.S.-origin
``parts'' and ``components,'' a development that potentially would mean
greater sales for U.S. suppliers, including small entities.
    Many exports and reexports of the Category XIV or Category XVIII
articles that are added to the CCL by this rule (particularly, the
``parts'' and ``components'' that are controlled under new ECCN
1A607.x, 1B607.x, or 6B619.x) are now eligible for license exceptions
that apply to exports to U.S. Government agencies, exports of ``parts''
and ``components'' for use as replacement parts, temporary exports and
limited value exports (for ECCN 1B607 and 6B619 items, only), as well
as License Exception STA, thereby reducing the number of licenses that
exporters will need to obtain for these items. License exceptions under
the EAR allow suppliers to send routine replacement parts and low level
parts to NATO and other close allies and export control regime partners
for use by those governments and for use by contractors building
equipment for those governments or for the U.S. Government without
having to obtain export licenses. Under License Exception STA, the
exporter needs to furnish information about the item being exported to
the consignee and obtain a statement from the consignee that, among
other things, will commit the consignee to comply with the EAR and
other applicable U.S. laws. Because such statements and obligations can
apply to an unlimited number of transactions and have no expiration
date, they will result in a net reduction in burden on transactions
routinely approved by the government through the license application
process that the License Exception STA statements would replace.
    Even for exports and reexports for which a license will be
required, the process for obtaining a license is simpler and less
costly under the EAR. When a USML Category XIV or Category

XVIII article is moved to the CCL, the number of destinations for which
a license is required remains unchanged. However, the burden on the
license applicant decreases because the licensing procedure for CCL
items is simpler and more flexible than the licensing procedure for
USML articles.
    Under the USML licensing procedure, an applicant must include a
purchase order or contract with its application. There is no such
requirement under the CCL licensing procedure. This difference gives
the CCL applicant at least two advantages. First, the applicant has a
way to determine whether the U.S. Government will authorize the
transaction before it enters into potentially lengthy, complex and
expensive sales presentations or contract negotiations. Under the USML
procedure, the applicant must caveat all sales presentations with a
reference to the need for government approval, and is more likely to
engage in substantial effort and expense only to find that the
government will reject the application. Second, a CCL license applicant
need not limit its application to the quantity or value of one purchase
order or contract. It may apply for a license to cover all of its
expected exports or reexports to a specified consignee over the life of
a license (normally four years, but maybe longer if circumstances
warrant a longer period), thus reducing the total number of licenses
for which the applicant must apply.
    In addition, many applicants exporting or reexporting items that
this rule transfers from the USML to the CCL will realize cost savings
through the elimination of some or all registration fees assessed under
the USML's licensing procedure. Currently, USML applicants must pay to
use the USML licensing procedure even if they never actually are
authorized to export. Registration fees for manufacturers and exporters
of articles on the USML start at $2,250 per year, increase to $2,750
for organizations applying for one to ten licenses per year and further
increase to $2,750 plus $250 per license application (subject to a
maximum of three percent of total application value) for those who need
to apply for more than ten licenses per year. Conversely, there are no
registration or application processing fees for applications to export
items listed on the CCL. Entities who applied for licenses from the
Department of State, for the Category XIV or Category XVIII items
subject to this rulemaking that are removed from the USML and added to
the CCL, will find their registration fees reduced if the number of
USML licenses those entities need declines. If an entity's entire
product line moves to the CCL, its ITAR registration and registration
fee requirement will be eliminated.

Conclusion

    BIS expects that the changes to the EAR implemented by this rule
will have a positive effect on all affected entities, including small
entities. While BIS acknowledges that this rule may have some cost
impacts on small (and other) entities, those costs are more than offset
by the benefits to the entities from the licensing procedures under the
EAR, which are much less costly and less time consuming than the
procedures under the ITAR. As noted above, any new burdens created by
this rule will be offset by a reduction in the number of items that
will require a license, increased opportunities for use of license
exceptions for exports to certain countries, simpler export license
applications, reduced or eliminated registration fees and application
of a de minimis threshold for foreign-made items incorporating U.S.-
origin parts and components, all of which will reduce the incentive for
foreign buyers to design out or avoid U.S.-origin content. Accordingly,
the Chief Counsel for Regulation, Department of Commerce, has certified
to the Chief Counsel for Advocacy, Small Business Administration, that
this rule, if implemented, would not have a significant economic impact
on a substantial number of small entities. Accordingly, an initial
regulatory flexibility analysis is not required, and none has been
prepared.

List of Subjects

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, parts 740 and 774 of the
Export Administration Regulations (15 CFR parts 730-774) are amended as
follows:

PART 740--[AMENDED]

0
1. The authority citation for 15 CFR part 740 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp.,
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 7, 2015, 80 FR 48233 (August 11, 2015).

0
2. Section 740.9 is amended by revising paragraph (a)(11) to read as
follows:

Sec.  740.9  Temporary imports, exports, reexports, and transfers (in-
country) (TMP).

* * * * *
    (a) * * *
    (11) Personal protective ``equipment'' classified under ECCN
1A613.c or .d and individual protection ``equipment'' classified under
ECCN 1A607.f--(i) Temporary exports, reexports, or in-country transfers
to countries not identified in Country Group D:5. U.S. persons may
temporarily export or reexport one set of body armor classified under
ECCN 1A613.d (which may include one helmet classified under ECCN
1A613.c) or one set of chemical or biological agent protective gear
classified under ECCN 1A607.f (which may include one additional filter
canister classified under ECCN 1A607.x) to countries not identified in
Country Group D:5, provided that:
    (A) The items are with the U.S. person's baggage or effects,
whether accompanied or unaccompanied (but not mailed); and
    (B) The items are for that U.S. person's exclusive use and not for
transfer of ownership unless reexported or transferred (in-country) to
another U.S. person.
    (ii) Temporary exports, reexports, or transfers (in-country) to
countries identified in Country Group D:5--(A) Iraq. U.S. persons may
temporarily export or reexport one set of body armor classified under
ECCN 1A613.d (which may include one helmet classified under ECCN
1A613.c) or one set of chemical or biological agent protective gear
classified under ECCN 1A607.f (which may include one additional filter
canister classified under ECCN 1A607.x) to Iraq, for personal use,
provided that the requirements in paragraph (a)(11)(i) of this section
are met. In addition, the U.S. person must be affiliated with the U.S.
Government and traveling on official business or traveling in support
of a U.S. Government contract, or the U.S. person must be traveling to
Iraq under a direct authorization by the Government of Iraq and
engaging in activities for, on behalf of, or at the request of, the
Government of Iraq. Documentation regarding direct authorization from
the Government of Iraq shall include an English translation.
    (B) Other countries in Country Group D:5. U.S. persons may
temporarily export or reexport one set of body armor classified under
ECCN 1A613.d (which may include one helmet classified under ECCN
1A613.c) or one set of chemical or biological agent protective

gear classified under ECCN 1A607.f (which may include one additional
filter canister classified under ECCN 1A607.x) to countries in Country
Group D:5 (except Iraq), for personal use, provided that the
requirements in paragraph (a)(11)(i) of this section are met, and the
U.S. person is affiliated with the U.S. Government traveling on
official business or is traveling in support of a U.S. Government
contract.
    (iii) Items exported, reexported, or transferred (in-country) under
this paragraph (a)(11), if not consumed or destroyed in the normal
course of authorized temporary use abroad, must be returned to the
United States or other country from which the items were so transferred
as soon as practicable but no later than four years after the date of
export, reexport or transfer (in-country).
* * * * *

0
3. Section 740.14 is amended by revising paragraphs (h)(1) and (2) to
read as follows:

Sec.  740.14  Baggage (BAG).

* * * * *
    (h) Special provisions: personal protective ``equipment''
classified under ECCN 1A613.c or .d and individual protection
``equipment'' classified under ECCN 1A607.f--(1) Exports, reexports, or
in-country transfers to countries not identified in Country Group D:5.
U.S. persons may export, reexport, or transfer (in-country) one set of
body armor classified under ECCN 1A613.d (which may include one helmet
classified under ECCN 1A613.c) or one set of chemical or biological
agent protective gear classified under ECCN 1A607.f (which may include
one additional filter canister classified under ECCN 1A607.x) to
countries not identified in Country Group D:5, provided that:
    (i) The items are with the U.S. person's baggage or effects,
whether accompanied or unaccompanied (but not mailed); and
    (ii) The items are for that person's exclusive use and not for
transfer of ownership unless reexported or transferred (in-country) to
another U.S. person.
    (2) Exports, reexports, or in-country transfers to countries
identified in Country Group D:5--(i) Iraq. U.S. persons may export,
reexport, or transfer (in-country) one set of body armor classified
under ECCN 1A613.d (which may include one helmet classified under ECCN
1A613.c) or one set of chemical or biological agent protective gear
classified under ECCN 1A607.f (which may include one additional filter
canister classified under ECCN 1A607.x) to Iraq, for personal use,
provided that the requirements in paragraph (h)(1) of this section are
met. In addition, the U.S. person must be affiliated with the U.S.
Government and traveling on official business or traveling in support
of a U.S. Government contract, or the U.S. person must be traveling to
Iraq under a direct authorization by the Government of Iraq and
engaging in activities for, on behalf of, or at the request of, the
Government of Iraq. Documentation regarding direct authorization from
the Government of Iraq shall include an English translation.
    (ii) Other countries in Country Group D:5. U.S. persons may export,
reexport, or transfer (in-country) one set of body armor classified
under ECCN 1A613.d (which may include one helmet classified under ECCN
1A613.c) or one set of chemical or biological agent protective gear
classified under ECCN 1A607.f (which may include one additional filter
canister classified under ECCN 1A607.x) to countries in Country Group
D:5 (except Iraq), for personal use, provided that the requirements in
paragraph (h)(1) of this section are met, and the U.S. person is
affiliated with the U.S. Government traveling on official business or
is traveling in support of a U.S. Government contract.
* * * * *

PART 774--[AMENDED]

0
4. The authority citation for part 774 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; Notice of August 7, 2015, 80 FR 48233 (August 11, 2015).

0
5. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add ECCN 1A607 between ECCNs 1A290
and 1A613 to read as follows:

Supplement No. 1 to Part 774--the Commerce Control List

* * * * *
1A607 Military dissemination ``equipment'' for riot control agents,
military detection and protection ``equipment'' for toxicological
agents (including chemical, biological, and riot control agents),
and related commodities (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                Control(s)                       No. 1  to Part 738)

NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

List Based License Exceptions (See Part 740 for a description of all
license exceptions)

LVS: N/A
GBS: N/A
CIV: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 1A607.

List of Items Controlled

Related Controls: (1) Vaccines identified in ECCN 1C991 are not
controlled by this ECCN. (2) See 22 CFR 121.1 (USML), Category
XIV(h), for vaccines that are subject to the ITAR. (3) Protection
and detection equipment and related items identified in ECCN 1A004,
1A995, or 2B351 are not controlled by this ECCN. (4) See 22 CFR
121.1 (USML), Category XIV(f), for dissemination, detection and
protection equipment that is subject to the ITAR. (5) See ECCN 0A919
for ``military commodities'' located and produced outside the United
States that incorporate more than a de minimis amount of US-origin
``600 series'' controlled content.
Related Definitions: N/A
Items:

    a. through d. [Reserved]
    e. ``Equipment'' ``specially designed'' for military use and for
the dissemination of any of the riot control agents controlled in
ECCN 1C607.a.
    f. Protection ``equipment'' (including air conditioning units,
protective coatings, and protective clothing):
    f.1. Not controlled by USML Category XIV(f); and
    f.2. ``Specially designed'' for military use and for defense
against:
    f.2.1. Materials specified by USML Category XIV (a) or (b); or
    f.2.2. Riot control agents controlled in 1C607.a.
    g. Decontamination ``equipment'':
    g.1. Not controlled by USML Category XIV(f); and
    g.2. ``Specially designed'' for military use and for
decontamination of objects contaminated with materials controlled by
USML Category XIV(a) or (b).
    h. ``Equipment'':
    h.1. Not controlled by USML Category XIV(f); and
    h.2. ``Specially designed'' for military use and for the
detection or identification of:
    h.2.1. Materials specified by USML Category XIV(a) or (b); or
    h.2.2. Riot control agents controlled by ECCN 1C607.a.

    i. [Reserved]
    j. ``Equipment'' ``specially designed'' to:
    j.1. Interface with a detector, shelter, vehicle, vessel, or
aircraft controlled by the USML or a ``600 series'' ECCN; and
    j.2. Collect and process samples of articles controlled in USML
Category XIV(a) or (b).
    k. Medical countermeasures that are ``specially designed'' for
military use (including pre- and post-treatments, antidotes, and
medical diagnostics) and ``specially designed'' to counter chemical
agents controlled by the USML Category XIV(a).
    Note: Examples of ``equipment'' controlled by this entry are
barrier and non-barrier creams and filled autoinjectors (e.g.,
combopens where one injector contains 2-PAM and the other atropine)
if ``specially designed'' to counter such agents.
    l. through w. [Reserved]
    x. ``Parts,'' ``components,'' ``accessories,'' and
``attachments'' that are ``specially designed'' for a commodity
controlled by ECCN 1A607.e, .f, .g, .h, or .j or for a defense
article controlled by USML Category XIV(f) and that are not
enumerated or otherwise described elsewhere in the USML.

0
6. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add ECCN 1B607 between ECCNs 1B234
and 1B608 to read as follows:

1B607 Military test, inspection, and production ``equipment'' and
related commodities ``specially designed'' for the ``development,''
``production,'' repair, overhaul, or refurbishing of commodities
identified in ECCN 1A607 or 1C607, or defense articles enumerated or
otherwise described in USML Category XIV (see List of Items
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                Control(s)                       No. 1  to Part 738)

NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

List Based License Exceptions (See Part 740 for a description of all
license exceptions)

LVS: $1500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 1B607.

List of Items Controlled

Related Controls: (1) See ECCN 2B350 for controls on certain
incinerators. (2) See ECCN 0A919 for ``military commodities''
located and produced outside the United States that incorporate more
than a de minimis amount of US-origin ``600 series'' controlled
content.
Related Definitions: N/A
Items:

    a. ``Equipment'' ``specially designed'' for the destruction of
the chemical agents controlled by USML Category XIV(a).
    Note to 1B607.a: ECCN 1B607.a includes controls over facilities
``specially designed'' for destruction operations. This paragraph .a
does not control incinerators and ``specially designed'' handling
facilities or ``specially designed'' waste supply systems therefor.
    b. Test facilities and ``equipment'' ``specially designed'' for
military certification, qualification, or testing of commodities
controlled by ECCN 1A607.e, .f, .g, .h, or .j or by USML Category
XIV(f), except for XIV(f)(1).
    c. Tooling and ``equipment'' ``specially designed'' for the
``development,'' ``production,'' repair, overhaul, or refurbishing
of commodities controlled by ECCN 1A607.e, .f .g, .h, or .j or USML
Category XIV(f).
    d. through w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories,'' and
``attachments'' that are ``specially designed'' for a commodity
controlled by ECCN 1B607.b or .c, or for a defense article
controlled by USML Category XIV(f), and that are not enumerated or
otherwise described elsewhere in the USML.

0
7. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1C607 between ECCNs
1C395 and 1C608 to read as follows:

1C607 Tear Gases, Riot Control Agents and materials for the
detection and decontamination of chemical warfare agents (see List
of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                Control(s)                       No. 1  to Part 738)

NS applies to entire entry, except          NS Column 1
 1C607.a.10, .a.11, .a.12, and .a.14.
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

List Based License Exceptions (See Part 740 for a description of all
license exceptions)

LVS: N/A
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 1C607.

List of Items Controlled

Related Controls: (1) See ECCN 1A984 for controls on other riot
control agents. (2) See 22 CFR 121.1 (USML), Category XIV(b), for
modified biological agents and biologically derived substances that
are subject to the ITAR. (3) See 22 CFR 121.1 (USML), Category
XIV(g), for ITAR controls on antibodies, recombinant protective
antigens, polynucleotides, biopolymers or biocatalysts (including
the expression vectors, viruses, plasmids, or cultures of specific
cells used to produce them) that are ``specially designed'' for use
with articles controlled under USML Category XIV(f). (4) See ECCN
0A919 for ``military commodities'' located and produced outside the
United States that incorporate more than a de minimis amount of US-
origin ``600 series'' controlled content.
Related Definitions: N/A
Items:

    a. Tear gases and riot control agents including:
    a.1. CA (Bromobenzyl cyanide) (CAS 5798-79-8);
    a.2. CS (o-Chlorobenzylidenemalononitrile or o-
Chlorobenzalmalononitrile) (CAS 2698-41-1);
    a.3. CN (Phenylacyl chloride or w-Chloroacetophenone) (CAS 532-
27-4);
    a.4. CR (Dibenz-(b,f)-1,4-oxazephine) (CAS 257-07-8);
    a.5. Adamsite (Diphenylamine chloroarsine or DM) (CAS 578-94-9);
    a.6. N-Nonanoylmorpholine, (MPA) (CAS 5299-64-9);
    a.7. Dibromodimethyl ether (CAS 4497-29-4);
    a.8. Dichlorodimethyl ether (ClCi) (CAS 542-88-1);
    a.9. Ethyldibromoarsine (CAS 683-43-2);
    a.10. Bromo acetone (CAS 598-31-2);
    a.11. Bromo methylethylketone (CAS 816-40-0);
    a.12. Iodo acetone (CAS 3019-04-3);
    a.13. Phenylcarbylamine chloride (CAS 622-44-6);
    a.14. Ethyl iodoacetate (CAS 623-48-3);
    Note to 1C607.a: ECCN 1C607.a. does not control the following:
formulations containing 1% or less of CN or CS; individually
packaged tear gases or riot control agents for personal self-defense
purposes that are controlled by ECCN 1A984; or active constituent
chemicals, and combinations thereof, identified and packaged for
food production or medical purposes.
    b. ``Biopolymers,'' not controlled by USML Category XIV(g)
``specially designed'' or processed for the detection or
identification of chemical warfare agents specified by USML Category
XIV(a), and the cultures of specific cells used to produce them.
    c. ``Biocatalysts,'' and biological systems therefor, not
controlled by USML Category XIV(g) ``specially designed'' for the
decontamination or degradation of chemical warfare agents controlled
in USML Category XIV (a), as follows:

    c.1. ``Biocatalysts'' ``specially designed'' for the
decontamination or degradation of chemical warfare agents controlled
in USML Category XIV(a) resulting from directed laboratory selection
or genetic manipulation of biological systems;
    c.2. Biological systems containing the genetic information
specific to the production of ``biocatalysts'' specified by
1C607.c.1, as follows:
    c.2.a. ``Expression vectors;''
    c.2.b. Viruses; or
    c.2.c. Cultures of cells.
    Note to 1C607.b and .c: The cultures of cells and biological
systems are exclusive and these sub-items do not apply to cells or
biological systems for civil purposes, such as agricultural,
pharmaceutical, medical, veterinary, environmental, waste
management, or in the food industry.
    d. Chemical mixtures not controlled by USML Category XIV(f)
``specially designed'' for military use for the decontamination of
objects contaminated with materials specified by USML Category
XIV(a) or (b).

0
8. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add ECCN 1D607 between ECCNs 1D390
and 1D608 to read as follows:

1D607 ``Software'' ``specially designed'' for the ``development,''
``production,'' operation, or maintenance of items controlled by
1A607, 1B607 or 1C607 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                Control(s)                       No. 1  to Part 738)

NS applies to entire entry, except          NS Column 1
 ``software'' for 1C607.a.10, .a.11,
 .a.12, and .a.14.
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

List Based License Exceptions (See Part 740 for a description of all
license exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 1D607.

List of Items Controlled

Related Controls: (1) ``Software'' directly related to articles
enumerated or otherwise described in USML Category XIV is subject to
the ITAR (see 22 CFR Sec.  121.1, Category XIV(m)). ``Software''
controlled by USML Category XIV(m) includes ``software'' directly
related to any equipment containing reagents, algorithms,
coefficients, software, libraries, spectral databases, or alarm set
point levels developed under U.S. Department of Defense contract or
funding for the detection, identification, warning or monitoring of
items controlled in paragraphs (a) or (b) of USML Category XIV, or
for chemical or biological agents specified by U.S. Department of
Defense funding or contract. (2) See ECCN 0A919 for ``military
commodities'' located and produced outside the United States that
incorporate more than a de minimis amount of US-origin ``600
series'' controlled content.
Related Definitions: N/A
Items:

    a. ``Software'' ``specially designed'' for the ``development,''
``production,'' operation, or maintenance of commodities controlled
by ECCN 1A607, 1B607, or 1C607.
    b. [RESERVED]

0
9. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1E607 between ECCNs
1E355 and 1E608 to read as follows:

1E607 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul, or refurbishing of items controlled by ECCN 1A607, 1B607,
1C607, or 1D607 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                Control(s)                       No. 1  to Part 738)

NS applies to entire entry, except          NS Column 1
 ``technology'' for 1C607.a.10, .a.11,
 .a.12, and .a.14 and for 1D607
 ``software'' therefor.
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

List Based License Exceptions (See Part 740 for a description of all
license exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 1E607.

List of Items Controlled

Related Controls: Technical data directly related to defense
articles enumerated or otherwise described in USML Category XIV are
subject to the ITAR (see 22 CFR Sec.  121.1, Category XIV(m)).
Technical data controlled by USML Category XIV(m) include technical
data directly related to any equipment containing reagents,
algorithms, coefficients, software, libraries, spectral databases,
or alarm set point levels developed under U.S. Department of Defense
contract or funding for the detection, identification, warning or
monitoring of items controlled in paragraphs (a) or (b) of USML
Category XIV, or for chemical or biological agents specified by U.S.
Department of Defense funding or contract.
Related Definitions: N/A
Items:

    a. ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul, or refurbishing of items controlled by ECCN 1A607, 1B607,
1C607 or 1D607.
    Note to 1E607.a: ECCN 1E607.a includes ``technology''
``required'' exclusively for the incorporation of ``biocatalysts''
controlled by ECCN 1C607.c.1 into military carrier substances or
military material.
    b. [RESERVED]

0
10. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6--Sensors and Lasers,'' add a new ECCN 6B619 between ECCNs
6B108 and 6B995 to read as follows:

6B619 Test, inspection, and production ``equipment'' and related
commodities ``specially designed'' for the ``development,''
``production,'' repair, overhaul, or refurbishing of commodities
enumerated or otherwise described in USML Category XVIII (see List
of Items Controlled)

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                 Control(s)                      No. 1  to Part 738)

NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 6B619.

List of Items Controlled

Related Controls: ``Parts,'' ``components,'' ``accessories,''
``attachments,'' and associated systems or ``equipment'' ``specially
designed'' for defense articles enumerated or otherwise described in
paragraphs (a) or (b) of USML Category XVIII are subject to the ITAR
(see 22 CFR 121.1, Category XVIII(e)).

Related Definitions: N/A
Items:

    a. Tooling, templates, jigs, mandrels, molds, dies, fixtures,
alignment mechanisms, and test ``equipment'' not enumerated or
otherwise described in USML Category XVIII and not elsewhere
specified on the USML that are ``specially designed'' for the
``development,'' ``production,'' repair, overhaul, or refurbishing
of commodities controlled by USML Category XVIII.
    b. through w. [Reserved]
    x. ``Parts,'' ``components,'' ``accessories,'' and
``attachments'' ``specially designed'' for a commodity subject to
control under paragraph .a of this ECCN and not enumerated or
otherwise described in USML Category XVIII and not elsewhere
specified on the USML.

0
11. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6--Sensors and Lasers,'' add a new ECCN 6D619 between ECCNs
6D201 and 6D991 to read as follows:

 6D619 ``Software'' ``specially designed'' for the ``development,''
``production,'' operation or maintenance of commodities controlled
by 6B619.

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                Control(s)                       No. 1  to Part 738)

NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

License Exceptions

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 6D619.

List of Items Controlled

Related Controls: ``Software'' directly related to articles
enumerated or otherwise described in USML Category XVIII is subject
to the ITAR (See 22 CFR 121.1, Category XVIII(f)).
Related Definitions: N/A
Items:

    The list of items controlled is contained in the ECCN heading.

0
12. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6--Sensors and Lasers,'' add ECCN 6E619 between ECCNs 6E202
and 6E990 to read as follows:

 6E619 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul or refurbishing of commodities controlled by 6B619 or
``software'' controlled by 6D619.

License Requirements

Reason for Control: NS, RS, AT, UN

                                              Country chart  (see Supp.
                 Control(s)                      No. 1  to Part 738)

NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls

License Exceptions

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2)
of the EAR) may not be used for any item in 6E619.

List of Items Controlled

Related Controls: Technical data directly related to articles
enumerated or otherwise described in USML Category XVIII are subject
to the ITAR (See 22 CFR 121.1, Category XVIII(f)).
Related Definitions: N/A
Items:

    The list of items controlled is contained in the ECCN heading.

Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-17506 Filed 7-27-16; 8:45 am]
 BILLING CODE 3510-33-P