(3) * * *
    (i) Subject to the following conditions, commodities or software
may be exported or reexported to replace

defective or otherwise unusable (e.g., erroneously supplied) items.
    (A) The commodity or software is ``subject to the EAR.''
    (B) The commodity or software to be replaced must have been
previously exported or reexported in its present form under a license
or authorization granted by BIS or an authorization, e.g., a license or
exemption, issued under the authority of the Arms Export Control Act.
    (C) No commodity or software may be exported or reexported to
replace equipment that is worn out from normal use, nor may any
commodity or software be exported to be held in stock abroad as spare
equipment for future use.
    (D) The replacement item may not improve the basic characteristic,
e.g., as to accuracy, capability, performance, or productivity, of the
equipment as originally authorized, e.g., under a license, license
exception or an exemption, for export or reexport.
    (E) No shipment may be made to countries in Country Group E:1 (see
Supplement No. 1 to this part), or to any other destination to replace
defective or otherwise unusable equipment owned or controlled by, or
leased or chartered to, a national of any of those countries.
    (F) Commodities or software ``subject to the EAR'' and classified
in ``600 Series'' ECCNs may not be exported or reexported to a
destination identified in Sec.  740.2(a)(12).
    (ii) * * *
    (C) The commodity or software to be replaced must either be
destroyed abroad or returned to the United States, or to a foreign firm
in Country Group B that is under the effective control of the exporter,
or to the foreign firm that is providing the replacement part or
equipment. The destruction or return must be effected before, or
promptly after, the replacement is exported from the United States.
* * * * *
    (c) Special recordkeeping requirements: ECCNs 2A983, 2A984, 2D983
and 2D984, and ``600 Series'' ECCNs. (1) In addition to the other
recordkeeping requirements set forth elsewhere in the EAR, exporters
are required to maintain records, as specified in this section, for any
items exported or reexported pursuant to License Exception RPL to
repair, replace, or service previously lawfully exported or reexported
items classified under ECCNs 2A983, 2A984, 2D983 and 2D984 or a ``600
Series'' ECCN. The following information must be maintained for each
such export or reexport transaction:
    (i) A description of the item replaced, repaired or serviced;
    (ii) The type of repair or service;
    (iii) Certification of the destruction or return of item replaced;
    (iv) Location of the item replaced, repaired or serviced;
    (v) The name and address of those who received the items for
replacement, repair, or service;
    (vi) Quantity of items shipped; and
    (vii) Country of ultimate destination.
    (2) Records maintained pursuant to this section may be requested at
any time by an appropriate BIS official as set forth in Sec.  762.7 of
the EAR. Records that must be included in the annual or semi-annual
reports of exports and reexports of ``600 Series'' items under the
authority of License Exception RPL are described in Sec.  743.4 and
Sec.  762.2(b)(4), (b)(47) and (b)(48).
    13. Section 740.11 is amended by adding paragraph (b)(3)(iii), to
read as follows:

Sec.  740.11  Governments, international organizations, international
inspections under the Chemical Weapons Convention, and the
International Space Station (GOV).

* * * * *
    (b) * * *
    (3) * * *
    (iii) Agency of a government eligible to receive ``600 series''
items. Only the countries listed in Sec.  740.20(c)(1) are eligible to
receive ``600 series'' items.
* * * * *
    14. Section 740.20 is amended:
    a. By adding a Note to paragraph (c)(1); and
    b. By adding paragraph (g), to read as follows:

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

* * * * *
    (c) * * *

    Note to paragraph (c)(1).  License Exception STA under Sec.
740.20(c)(1) may be used to authorize the export, reexport or
transfer (in-country) of ``600 series'' items, provided the ultimate
end-use for the ``parts,'' ``components,'' ``accessories and
attachments'' or for any item classified in a ``600 series'' product
group B or C ECCN is by a government in one of the countries listed
in Sec.  740.20(c)(1). For ``600 series'' end items, see paragraph
(g) of this section. Exports and reexports to non-governmental end-
users in a country listed in Sec.  740.20(c)(1) are authorized
through License Exception STA under Sec.  740.20(c)(1) as long as
the item at issue at the time of export, reexport or transfer (in-
country) is ultimately destined for end use by the armed forces,
police, paramilitary, law enforcement, customs and border
protection, correctional, fire, and search and rescue agencies of a
government of one of the Sec.  740.20(c)(1) countries. This
provision does not alter the limitations on the use of License
Exception STA contained in Sec.  740.20(b)(2).

* * * * *
    (g) License Exception STA eligibility requests for ``600 series''
end items.
    (1) Applicability. Exporters, reexporters and transferors may
request License Exception STA eligibility for ``end items'' classified
in a ``600 series'' product group A ECCN. License Exception STA
requests under this paragraph (g) may only be submitted together with a
license application submitted to BIS for an export, reexport or
transfer (in-country) of an ``end item'' classified in a ``600 series''
product group A ECCN.
    (2) Required information for requests. A License Exception STA
eligibility request must include the following statement, ``Request for
additional License Exception STA eligibility for ECCN(s) ``xA6zz.'' For
information on what information must be submitted and the information
required in the BIS-748P Multipurpose Application form, see Supplement
No. 2 to part 748.
    (3) Timeline for USG review. The U.S. Government reviews license
applications and License Exception STA eligibility requests at the same
time to determine whether either submission should be approved. Both
license applications for ``600 series'' items and License Exception STA
eligibility requests would be reviewed in accordance with the timelines
set forth in Executive Order 12981 and Sec.  750.4. If the License
Exception STA request is approved, the process outlined in paragraph
(g)(5)(i) of this section is followed.
    (4) Review criteria. The Departments of Commerce, Defense and State
will determine whether the item is eligible for this license exception
based on an assessment of whether it provides a critical military or
intelligence advantage to the United States or is otherwise available
in countries that are not regime partners or close allies. If the item
does not provide a critical military or intelligence advantage to the
United States or is otherwise available in countries that are not
regime partners or close allies, the Departments will determine that
License Exception STA is available unless an overarching foreign policy
rationale for restricting STA availability can be articulated.
Consensus between the Departments is required in order for an ``end
item'' to be eligible for License Exception STA. Such determinations
are made by the departments' representatives to the Advisory Committee
on Export Policy (ACEP), or their designees.

    (5) Disposition of License Exception STA eligibility requests.
    (i) Approvals. If the request is approved, the applicant will
receive written notification from BIS authorizing the use of the
additional License Exception STA for the specific items requested.
Applicants who receive an approval request may share that written
notification with companies affiliated with them, such as a branch or
distributor, and may also take steps to make it public (e.g., on their
Web site) if the applicants so wish. In addition, BIS will add a
description of the approved end item in an online table which will use
the same format as Supplement No. 4 to part 774, which removes the
restriction on the use of License Exception STA for the end item
identified in the approved request. The description of these end items
will be posted on the BIS Web site (typically within 30 calendar days
from date on which the approved response was sent), informing other
exporters, reexporters and transferors of the additional license
exception eligibility for that ``600 series'' product group A ECCN.
Within approximately three months after such a written response was
sent to the applicant (i.e., the date of the BIS response sent to the
applicant), in either a January, April, July, or October quarterly
update of Supplement No. 4 to part 774 (Listing of License Exception
STA Eligibility Determinations Pursuant to Sec.  740.20(g) for ``600
Series'' ``End Items'' Eligible for License Exception STA under Sec.
740.20(c)(1)), BIS will publish a final rule adding this license
exception eligibility to the EAR for that ECCN entry.
    (ii) Denials. If the STA eligibility request is not approved, the
license application will be reviewed under the normal license review
process described in part 750. The STA eligibility review is completed
concurrently with the license application review period. The license
application will be reviewed in accordance with the license review
policies in part 742 (and parts 744 and/or 746, if applicable).
Interagency review of license applications is conducted without regard
to the disposition of an STA eligibility request. Applicants may re-
submit STA eligibility requests at any time.
    (iii) Recordkeeping requirements for approved License Exception STA
eligibility requests. BIS written responses to License Exception STA
eligibility requests (either from the BIS Web site or in original form)
must be kept in accordance with the recordkeeping requirements in part
762 of the EAR.

PART 742--[AMENDED]

    15. The authority citation for 15 CFR part 742 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 43
FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR,
1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential Determination
2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Notice of August
12, 2010, 75 FR 50681 (August 16, 2010); Notice of November 4, 2010,
75 FR 68673 (November 8, 2010).

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

Sec.  742.4  National security.

* * * * *
    (b) Licensing policy. (1)(i) The policy for national security
controlled items exported or reexported to any country except a country
in Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is
to approve applications unless there is a significant risk that the
items will be diverted to a country in Country Group D:1.
    (ii) When destined to a country subject to a United States arms
embargo (see Sec.  740.2(a)(12), however, items classified under ``600
series'' ECCNs are subject to a general policy of denial.
* * * * *
    17. Section 742.6 is amended:
    a. By revising paragraph (a)(1);
    b. In the introductory text of paragraph (a)(4)(i) by removing the
text ``and .b'' after the text ``9A018.a'' in three places where the
text appears;
    c. By adding paragraph (a)(7); and
    d. By revising the first sentence of paragraph (b)(1), to read as
follows:

Sec.  742.6  Regional stability.

    (a) * * *
    (1) RS Column 1 License Requirements in General. As indicated in
the CCL and in RS column 1 of the Commerce Country Chart (see
Supplement No. 1 to part 738 of the EAR), a license is required to all
destinations, except Canada, for items described on the CCL under ECCNs
0A521; 0A606 (except 0A606.y); 0B521; 0B606 (except 0B606.y); 0C521;
0C606 (except 0C606.y); 0D521; 0D606 (except 0D606.y); 0E521; 0E606
(except 0E606.y); 6A002.a.1, a.2, a.3, .c, or .e; 6A003.b.3, and b.4.a;
6A008.j.1; 6A998.b; 6D001 (only ``software'' for the ``development'' or
``production'' of items in 6A002.a.1, a.2, a.3, .c; 6A003.b.3 and .b.4;
or 6A008.j.1); 6D002 (only ``software'' for the ``use'' of items in
6A002.a.1, a.2, a.3, .c; 6A003.b.3 and .b.4; or 6A008.j.1); 6D003.c;
6D991 (only ``software'' for the ``development,'' ``production,'' or
``use'' of equipment classified under 6A002.e or 6A998.b); 6E001 (only
``technology'' for ``development'' of items in 6A002.a.1, a.2, a.3
(except 6A002.a.3.d.2.a and 6A002.a.3.e for lead selenide focal plane
arrays), and .c or .e, 6A003.b.3 and b.4, or 6A008.j.1); 6E002 (only
``technology'' for ``production'' of items in 6A002.a.1, a.2, a.3, .c,
or .e, 6A003.b.3 or b.4, or 6A008.j.1); 6E991 (only ``technology'' for
the ``development,'' ``production,'' or ``use'' of equipment classified
under 6A998.b); 6D994; 7A994 (only QRS11-00100-100/101 and QRS11-0050-
443/569 Micromachined Angular Rate Sensors); 7D001 (only ``software''
for ``development'' or ``production'' of items in 7A001, 7A002, or
7A003); 7E001 (only ``technology'' for the ``development'' of inertial
navigation systems, inertial equipment, and specially designed
components therefor for civil aircraft); 7E002 (only ``technology'' for
the ``production'' of inertial navigation systems, inertial equipment,
and specially designed components therefor for civil aircraft); 7E101
(only ``technology'' for the ``use'' of inertial navigation systems,
inertial equipment, and specially designed components for civil
aircraft).
* * * * *
    (7) RS Column 1 license requirements and related policies for
`0Y521.'
    (i) Scope. This paragraph (a)(7) supplements the information in the
`0Y521' ECCNs and in Supplement No. 5 to part 774 (Items Classified
Under ECCNs 0A521, 0B521, 0C521, 0D521 and 0E521). This subparagraph
alerts exporters, reexporters and transferors to the procedures that
apply to items classified under the `0Y521' ECCNs.
    (ii) `0Y521' Items. Items subject to the EAR that are not listed
elsewhere in the CCL, but which the Department of Commerce, with the
concurrence of the Departments of Defense and State has determined
should be controlled for export because the items provide at least a
significant military or intelligence advantage to the United States or
for foreign policy reasons shall be classified under ECCNs 0A521,
0B521, 0C521, 0D521 and 0E521. These items are typically emerging
technologies (including emerging commodities, software and technology)
that are not otherwise yet included in the CCL, so such items are
listed on the CCL through ECCNs `0Y521' until the items are classified
under another ECCN.

    (iii) Requirement to be classified under another ECCN within one
calendar year of classification under ECCN `0Y521.' Items classified
under an ECCN `0Y521' entry must be re-classified within one calendar
year from the date they are listed in Supplement No. 5 to part 774 of
the EAR. If such re-classification does not occur within that period,
classification under an ECCN `0Y521' entry expires, and such items are
designated as EAR99 items unless the CCL is amended to either impose a
control on such items under another ECCN or to re-extend for another
one-year period (not to exceed two extensions) the classification under
ECCN `0Y521.'
    (b) Licensing policy. (1) Applications for exports and reexports
described in paragraph (a)(1), (a)(2), (a)(6) or (a)(7) of this section
will be reviewed on a case-by-case basis to determine whether the
export or reexport could contribute directly or indirectly to any
country's military capabilities in a manner that would alter or
destabilize a region's military balance contrary to the foreign policy
interests of the United States.
* * * * *

PART 743--[AMENDED]

    18. The authority citation for 15 CFR part 743 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2010, 75 FR 50681 (August 16, 2010).

    19. Section 743.1 is amended by adding two sentences at the end of
the introductory text of paragraph (a), to read as follows:

Sec.  743.1  Wassenaar Arrangement.

    (a) * * * This section is limited to the Wassenaar Arrangement
reporting requirements for items listed on the Wassenaar Arrangement's
Dual-Use list. For reporting requirements for conventional arms listed
on the Wassenaar Arrangement Munitions List that are subject to the EAR
(i.e., ``600 series'' ECCNs), see Sec.  743.4 of this part for
Wassenaar Arrangement and United Nations reporting requirements.
* * * * *
    20. Add Sec.  743.4, to read as follows:

Sec.  743.4  Conventional arms reporting.

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

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

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

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

    (iii) Country of ultimate destination.
    (f) Frequency and timing of reports--(1) Semi-annual reports for
items identified in paragraph (c)(1) of this section. You must submit
reports subject to the provisions of this section semiannually. The
reports must be labeled with the exporting company's name and address
at the top of each page and must include for each such export all the
information specified in paragraph (e) of this section. The reports
shall cover exports made during six month time periods spanning from
January 1 through June 30 and July 1 through December 31.
    (i) The first report must be submitted to and received by BIS no
later than [INSERT DATE] for the partial reporting period beginning
[INSERT DATE] and ending [INSERT DATE]. Thereafter, reports are due
according to the provisions of paragraphs (f)(2) and (f)(3) of this
section.
    (ii) Reports for the reporting period ending June 30 must be
submitted to and received by BIS no later than August 1.
    (iii) Reports for the reporting period ending December 31 must be
submitted to and received by BIS no later than February 1.
    (2) Annual reports for items identified in paragraph (c)(2) of this
section. You must submit reports subject to the provisions of this
section annually. The reports must be labeled with the

exporting company's name and address at the top of each page and must
include for each such export all the information specified in paragraph
(e) of this section. The reports shall cover exports made during twelve
month time periods spanning from January 1 through December 31.
    (i) The first report must be submitted to and received by BIS no
later than [INSERT DATE] for the partial reporting period beginning
[INSERT DATE] and ending [INSERT DATE]. Thereafter, reports are due
according to the provisions of paragraph (f)(2) of this section.
    (ii) Reports for the reporting period ending December 31 must be
submitted to and received by BIS no later than February 1.
    (g) Submission of reports. Information should be submitted in the
form of an EXCEL spreadsheet and e-mailed to<EMAIL_ADDRESS>or
<EMAIL_ADDRESS>    (h) Contacts. General information concerning the Wassenaar
Arrangement and reporting obligations thereof is available from the
Office of National Security and Technology Transfer Controls, Tel.
(202) 482-0092, Fax:<PHONE_NUMBER>.

PART 744--[AMENDED]

    21. The authority citation for 15 CFR part 744 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 12, 2010, 75 FR 50681
(August 16, 2010); Notice of November 4, 2010, 75 FR 68673 (November
8, 2010): Notice of January 13, 2011, 76 FR 3009, January 18, 2011.

    22. Section 744.17 is amended:
    a. By revising the section heading; and
    b. By revising paragraph (d), to read as follows:

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

* * * * *
    (d) Military end use. In this section, the phrase `military end
use' means incorporation into: a military item described on the U.S.
Munitions List (USML) (22 CFR part 121, International Traffic in Arms
Regulations) or the Wassenaar Arrangement Munitions List (as set out on
the Wassenaar Arrangement Web site at http://www.wassenaar.org);
commodities classified under ECCNs ending in ``A018'' or under ``600
series'' product group A, B, or C ECCNs; or any item that is designed
for the ``use,'' ``development,'' ``production,'' or deployment of
military items described on the USML, the Wassenaar Arrangement
Munitions List or classified under ECCNs ending in ``A018'' or under
``600 series'' product group A, B, or C ECCNs. Supplement No. 1 of this
part lists examples of `military end use.'
* * * * *
    23. Section 744.21 is amended by revising the first sentence of
paragraph (f), to read as follows:

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

* * * * *
    (f) In this section, `military end use' means: incorporation into a
military item described on the U.S. Munitions List (USML) (22 CFR part
121, International Traffic in Arms Regulations); incorporation into a
military item described on the Wassenaar Arrangement Munitions List (as
set out on the Wassenaar Arrangement Web site at http://www.wassenaar.org); incorporation into items classified under ECCNs
ending in ``A018'' or under ``600 series'' product group A, B or C
ECCNs; or for the ``use,'' ``development,'' or ``production'' of
military items described on the USML or the Wassenaar Arrangement
Munitions List, or items classified under ECCNs ending in ``A018'' or
under ``600 series'' product group A, B or C ECCNs. * * *
* * * * *
    24. Supplement No. 2 to part 744 (List of Items Subject to the
Military End-Use License Requirement of Sec.  744.21) is amended:
    a. By revising the introductory text of the Supplement; and
    b. By adding paragraph (10), to read as follows:

SUPPLEMENT NO. 2 TO PART 744--LIST OF ITEMS SUBJECT TO THE MILITARY
END-USE LICENSE REQUIREMENT OF Sec.  744.21

    The following items, as described, are subject to the military
end-use license requirement in Sec.  744.21. See paragraph (10) for
items classified under the ``600 series.''
* * * * *
    (10) ``600 series.''
    (i) Any item classified in paragraph .y of a ``600 series''
entry (e.g., 0A606.y).
    (ii) [Reserved]

PART 746--[AMENDED]

    25. The authority citation for 15 CFR part 746 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C.
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR,
1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p. 783;
Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May
16, 2003; Presidential Determination 2007-7 of December 7, 2006, 72
FR 1899 (January 16, 2007); Notice of August 12, 2010, 75 FR 50681
(August 16, 2010).

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

Sec.  746.3  Iraq.

* * * * *
    (b) * * *
    (2) License applications for the export or reexport to Iraq or
transfer within Iraq of machine tools controlled for national security
(NS) or nuclear nonproliferation (NP) reasons, as well as for any items
controlled for crime control (CC) or United Nations (UN) reasons
(including items classified under ECCN 0A986) or ECCNs that end in the
number ``018'' or items classified under ``600 series'' ECCNs, that
would make a material contribution to the production, research, design,
development, support, maintenance or manufacture of Iraqi weapons of
mass destruction, ballistic missiles or arms and related materiel will
be subject to a general policy of denial.
* * * * *

PART 748--[AMENDED]

    27. The authority citation for 15 CFR part 748 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 12, 2010, 75
FR 50681 (August 16, 2010).

    28. Section 748.8 is amended by adding paragraph (w), to read as
follows:

Sec.  748.8  Unique application and submission requirements.

* * * * *
    (w) License Exception STA eligibility requests for ``600 series''
end items.
    29. Supplement No. 2 to part 748 (Unique Application and Submission
Requirements) is amended by adding paragraph (w), to read as follows:

SUPPLEMENT NO. 2 TO PART 748--UNIQUE APPLICATION AND SUBMISSION
REQUIREMENTS

* * * * *
    (w) License Exception STA eligibility requests for ``600
series'' end items. To request a License Exception STA eligibility
requests for ``600 series'' items pursuant to Sec.  740.20(g), you
must specify ``License Exception STA request pursuant to 740.20(g)''
in Block 9 (Special Purpose) and mark ``export'' or ``reexport'' as
applicable in Block 5 (Type of Application) of the BIS-748P
``Multipurpose Application'' form. If the application is for an
``in-country (transfer)'' follow the instructions in Supplement No.
2 to part 748 under paragraph (v) to mark in Block 9 (Special
Purpose) for in-country transfer and License Exception STA
eligibility request pursuant to Sec.  740.20(g), along with marking
``reexport'' in Block 5. Applicants will need to provide sufficient
information for the U.S. Government to make such a determination.
This will require the applicant to submit more than merely a
description of the end item. In particular, the applicant will need
to provide supporting information for why it believes that the item
does not, for example, provide a critical military or intelligence
advantage to the United States or is otherwise available in
countries that are not regime partners or close allies. The
applicant will also need to provide information regarding whether
and, if so, how the item is controlled by the export control laws
and regulations of close allies and regime partners, if known. The
applicant should provide BIS with the text it would propose BIS use
in describing the end item in Supplement No. 4 to part 774 and the
online table referenced in Sec.  740.20(g)(5)(i) in anticipation the
request may be approved pursuant to Sec.  740.20(g). You may submit
additional information that you believe is relevant to the U.S.
Government in reviewing the License Exception STA eligibility
request either under Block 24 (Additional Information) or as a
separate support document attachment to the license application.

PART 756--[AMENDED]

    30. The authority citation for 15 CFR part 756 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2010, 75 FR 50681 (August 16, 2010).

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

Sec.  756.1  Introduction.

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

PART 762--[AMENDED]

    32. The authority citation for 15 CFR part 762 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2010, 75 FR 50681 (August 16, 2010).

    33. Section 762.2 is amended:
    a. By revising paragraph (b)(4);
    b. In paragraph (b)(45) by removing the ``and'' at the end of the
paragraph;
    c. In paragraph (b)(46) by removing the period at the end of the
paragraph and adding a semi-colon at the end of the paragraph; and
    d. By adding paragraphs (b)(47) and (b)(48), to read as follows:

Sec.  762.2  Records to be retained.

* * * * *
    (b) * * *
    (4) Sec.  740.10, Servicing and replacement of parts, components,
accessories, and attachments (RPL);
* * * * *
    (47) Sec.  743.4, Conventional Arms Reporting under (c)(1) and
(c)(2); and
    (48) Sec.  740.20(g), Responses to License Exception STA
eligibility requests for ``600 series'' end items.
* * * * *

PART 770--[AMENDED]

    34. The authority citation for 15 CFR part 770 continues to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2010, 75 FR 50681 (August 16, 2010).

    35. Section 770.2 is amended by revising paragraph (h), to read as
follows:

Sec.  770.2  Item interpretations.

* * * * *
    (h) Interpretation 8: Ground vehicles. (1) BIS has export licensing
jurisdiction over ground transport vehicles (including trailers),
parts, and components therefor specially designed or modified for non-
combat military use. Vehicles in this category are primarily transport
vehicles designed or modified for transporting cargo, personnel and/or
equipment, or to move other vehicles and equipment over land and roads
in close support of fighting vehicles and troops. BIS also has export
licensing jurisdiction over unarmed civil vehicles that are all-wheel
drive sport utility vehicles capable of off-road use which have been
manufactured or fitted with materials to provide ballistic protection,
including protection to level III (as defined by the Department of
Justice's National Institute of Justice Standard 0108.01, September
1985) or better. In this section, and in ECCN 0A606, the word
``unarmed'' means not having weapons installed, not having mountings
for weapons installed, and not having special reinforcements for
mountings for weapons.
    (2) Modification of a ground vehicle for military use entails a
structural, electrical or mechanical change involving one or more
``specially designed'' military components. Such components include,
but are not limited to:
    (i) Pneumatic tire casings of a kind designed to be bullet-proof or
to run when deflated;
    (ii) Tire inflation pressure control systems, operated from inside
a moving vehicle;
    (iii) Armored protection of vital parts, (e.g., fuel tanks or
vehicle cabs);
    (iv) Special reinforcements for mountings for weapons; and
    (v) Black-out lighting.
    (3) Scope of ECCN 0A606.b.4 and ground vehicles designated as
EAR99.
    (i) Ground transport vehicles (including trailers) ``specially
designed'' for non-combat military use are classified under ECCN
0A606.b.4.
    (ii) Unarmed civil all-wheel drive vehicles capable of off-road use
that are not described in paragraph (h)(4) of this section and which
have been manufactured or fitted with materials to provide ballistic
protection to level III (as defined by DOJ's National Institute of
Justice Standard 0108.01, September 1985) or better are classified
under ECCN 0A606.b.4.

    Note 1 to paragraph (h)(3)(ii):  ECCN 0A606.b.4 does not include
`civil automobiles', or trucks designed or modified for transporting
money or valuables, having armored or ballistic protection, even if
the automobiles or trucks incorporate items described in paragraphs
(h)(2) (i), (ii), or (iii) of this section, provided the `civil
automobile' is not an all-wheel drive vehicle capable of off-road
use.

    Note 2 to paragraph (h)(3)(ii). In this section, the term `civil
automobile' means a passenger car, limousine, van or sport utility
vehicle designed for the transportation of passengers and marketed
through civilian channels in the United States.

    (iii) Certain ``parts,'' ``components,'' ``accessories,'' and
``attachments'' that are related to items classified under ECCN
0A606.b.4 will be specifically identified in the respective
subparagraphs of ECCN 0A606.b.4. ``Parts,'' ``components,''
``accessories,'' and ``attachments'' that are ``specially designed''
for a commodity classified under ECCN 0A606 or a defense article in
USML Category VII are classified under 0A606.x. Specific ``parts,''
``components,'' ``accessories,''

``attachments'' of less military significance, but warrant AT-controls
that are related to items classified under ECCN 0A606.b are classified
under 0A606.y.
    (iv) EAR99. Ground vehicles that are not described in paragraph
(h)(4) of this section and that are not classified under either ECCN
0A606 or 9A990 are designated as EAR99 items, meaning that they are
subject to the EAR, but not listed in any specific ECCN.
    (4) Related control. The Department of State, Directorate of
Defense Trade Controls (DDTC) has export licensing jurisdiction for all
military ground armed or armored vehicles and parts and components
specific thereto as described in 22 CFR part 121, Category VII. DDTC
also has export licensing jurisdiction for all-wheel drive vehicles
capable of off-road use that have been armed or armored with articles
described in 22 CFR part 121 or that have been manufactured or fitted
with special reinforcements for mounting arms or other specialized
military equipment described in 22 CFR part 121.
* * * * *

PART 772--[AMENDED]

    36. The authority citation for 15 CFR part 772 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2010, 75 FR 50681 (August 16, 2010).

    37. Section 772.1 is amended:
    a. By revising the definition of ``military commodity,'' and
``specially designed;'' and
    b. By adding the following ten definitions for the terms ``600
series,'' ``accessories and attachments,'' ``component,'' ``end item,''
``equipment,'' ``facilities,'' ``material,'' ``part,'' ``serial
production,'' and ``system'' as set forth below:

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

    600 series. This is a control series in the ``xY6zz'' format on the
Commerce Control List (CCL) that controls items on the CCL that were
previously controlled on the United States Munitions List or because
they are covered by the Wassenaar Arrangement Munitions List (WAML).
The ``6'' indicates the entry is a munitions entry on the CCL. The
``x'' represents the CCL category and ``Y'' the CCL category of the
respective ``600 series'' ECCNs, such as ECCN 0A606. The ``600 series''
constitutes the Commerce Munitions List within the larger CCL.
* * * * *
    Accessories and attachments. These are associated items for any
``component,'' ``end item,'' or ``system,'' and which are not necessary
for their operation, but which enhance their usefulness or
effectiveness. For example, for a riding lawnmower, accessories and
attachments will include the bag to capture the cut grass, and a canopy
to protect the operator from the sun and rain.
* * * * *
    Component. This is an item that is useful only when used in
conjunction with an ``end item.'' Components are also commonly referred
to as assemblies. For purposes of this definition an assembly and a
component are the same. There are two types of ``components'': ``Major
components'' and ``minor components.'' A ``major component'' includes
any assembled element which forms a portion of an ``end item'' without
which the end item is inoperable. For example, for an automobile,
components will include the engine, transmission, and battery. If you
do not have all those items, the automobile will not function, or
function as effectively. A ``minor component'' includes any assembled
element of a ``major component.'' ``Components'' consist of `parts.'''
References in the CCL to ``components'' include both ``major
components'' and ``minor components.''
* * * * *
    End item. This is a combination of ``components,'' ``parts,''
``accessories and attachments,'' or material in the form of a product,
system, or piece of equipment that is ready for its intended stand-
alone use, such as a ship, aircraft, firearm, or milling machine.
* * * * *
    Equipment. This is a set of tools, devices, kits, or similar items
assembled for a specific purpose. Equipment is a subset of ``end
items.''
* * * * *
    Facilities. This means a building or outdoor area in which people
use an item that is built, installed, produced, or developed for a
particular purpose.
* * * * *
    Material. This is any list-specified crude or processed matter that
is not clearly identifiable as any of the types of items defined in
section 772.1 under the defined terms, ``end item,'' ``component,''
``accessories and attachments,'' ``part,'' ``software,'' ``system,''
``equipment,'' or ``facilities.''
* * * * *
    Military commodity. As used in Sec.  734.4(a)(5), Supplement No. 1
to part 738 (footnote No. 3), Sec.  740.2(a)(11), Sec.  740.16(a)(2),
Sec.  740.16(b)(2), Sec.  742.6(a)(3), Sec.  744.9(a)(2), Sec.
744.9(b), ECCN 0A919 and ECCNs 0A606, 0B606, 0C606, 0D606, 0E606, and
6A003 (Related Controls), ``military commodity'' or ``military
commodities'' means an article, material or supply that is described on
the United States Munitions List (22 CFR Part 121) or on the Munitions
List that is published by the Wassenaar Arrangement on Export Controls
for Conventional Arms and Dual-Use Goods and Technologies, but does not
include software, technology and any item listed in any ECCN for which
the last three numerals are 018 or any item in the ``600 series.''
* * * * *
    Part. This is any single unassembled element of a component,
accessory, or attachment which is not normally subject to disassembly
without the destruction or the impairment of design use. Examples
include threaded fasteners (e.g., screws, bolts, nuts, nut plates,
studs, inserts), other fasteners (e.g., clips, rivets, pins), common
hardware (e.g., washers, spacers, insulators, grommets, bushings),
springs and wire.
* * * * *
    Serial production. A type of production where the ``items'' being
produced are no longer in ``development.'' In this type of production
the ``items'' have passed production readiness testing (i.e., an
approved, standardized design ready for large scale production) and are
being or have been produced based on the approved, standardized design,
including and especially on assembly lines.
* * * * *
    Specially designed.--
    (a) A ``specially designed'' item, other than a ``part'' or
``component,'' is an item that is enumerated on the CCL and, as a
result of ``development,'' has properties peculiarly responsible for
achieving or exceeding the controlled performance levels,
characteristics, or functions of the referenced item identified in the
CCL.
    (b) A ``specially designed'' ``part'' or ``component'' is a
``part'' or ``component'' of an item `enumerated' in a category of the
CCL.
    (c) For the purposes of this definition, an item is not considered
``specially designed'' if it is separately `enumerated' in an USML
subcategory or an ECCN that does not have ``specially designed'' as a
control criterion.
    (d) Items that are not so separately `enumerated' for purposes of
this definition, are also not considered

``specially designed'' in any category of the CCL if they are:
    (1) A single, unassembled part used in multiple types of civil
items, such as threaded fasteners (e.g., screws, bolts, nuts, nut
plates, studs, inserts), other fasteners (e.g., clips, rivets, pins),
common hardware (e.g., washers, spacers, insulators, grommets,
bushings), springs and wire; or
    (2) An item specifically excluded from control on the USML or the
CCL; or
    (3) A ``part'' or ``component'' used as a ``part'' or ``component''
of an end- item in ``serial production'' and not `enumerated' on the
USML or CCL (i.e., the end item is an EAR99 item), and the part's or
component's form, fit, and function have not been altered for use in
another end item enumerated on the USML or CCL after ``serial
production'' of the end-item not enumerated on the USML or CCL has
begun; or
    (4) A ``part'' or ``component'' that can be exchanged with an EAR99
or AT-only controlled ``part'' or ``component'' on a one-for-one
replacement basis without modification to the form, fit and function of
the EAR99 or AT-only ``part'' or ``component,'' and the EAR99 or AT-
only part's or component's function is identical to the ``part'' or
``component'' at issue.

    Note 1 to Definition: The definition of ``specially designed''
does not extend control to items simply because they could in theory
be used with the listed item on the USML or CCL.

    Note 2 to Definition: This definition of ``specially designed''
is not applicable to the phrase ``specifically designed'' in use
throughout the U.S. Munitions List or to ``especially designed or
prepared for'' in use throughout the Nuclear Regulatory Commission
regulations (see 10 CFR part 110).

    Note 3 to Definition: `Enumerated' means any item identified on
either the USML or CCL that is controlled for more than AT-only
reasons. For example, integrated circuits are identified in both the
USML Category XV(d), ECCN 3A001.a, and 3A991. An integrated circuit,
therefore, is a separately enumerated item that is not a ``specially
designed'' ``part'' or ``component'' for purposes of this definition
if it is within the control parameters of ECCN 3A001.a, which is an
ECCN controlled for more than AT-only reasons. An integrated circuit
is not a separately enumerated item if it is not within the control
parameters of ECCN 3A001.a, but is within the control parameters of
3A991, which is controlled only for AT reasons. An item that falls
within the technical or other parameters of an existing ECCN that
has more than AT-only controls is classified under that ECCN unless
the ECCN includes a ``related control'' note identifying that an
additional control parameter needs to be assessed in a 600 series
ECCN.

    Note to Exclusion Paragraph Number 1: ``Threaded fasteners
(e.g., screws, bolts, nuts, nut plates, studs, inserts), other
fasteners (e.g., clips, rivets, pins), common hardware (e.g.,
washers, spacers, insulators, grommets, bushings), springs, and
wire'' are identified as representative types of items excluded from
the definition of ``specially designed'' for non-enumerated items
because they are commonly used in end items that are described,
generally or specifically, in multiple USML and CCL categories.
Bolts are in ground vehicles, planes, and ships, for example. For
purposes of exclusion paragraph number 1, the part remains excluded
even if it varies by physical dimensions or materials from other
parts of the same type. A pivot block that is used to hold an axle
assembly to a vehicle is, although a single unassembled item, only
used on vehicles. Items such as pivot blocks are thus not excluded
from ``specially designed'' by virtue of exclusion paragraph number
1, although they are not precluded from being excluded by another
paragraph in the definition.

    Note to Exclusion Paragraph Number 2: Examples of items
specifically excluded from control on the USML are (i) ``aircraft''
tires and propellers used with reciprocating engines identified in
USML subcategory VIII(h) and the types of items identified as not
subject to USML Category VIII in the ``Note'' to that category.
Examples of items specifically excluded from control on the CCL are
those items that may be identified at the end of each of the 600
series ECCNs as a result of notices in response to license
applications.

    Note to Exclusion Paragraph Number 3: ``Serial production'' is
defined in section 772.1 as a type of production where the ``items''
being produced are no longer in ``development.'' In this type of
production the ``items'' have passed production readiness testing
(i.e., an approved, standardized design ready for large scale
production) and are being or have been produced based on the
approved, standardized design, including and especially on assembly
lines. ``Development,'' is defined in EAR section 772.1 as being
``related to all stages prior to serial production, such as: Design,
design research, design analyses, design concepts, assembly and
testing of prototypes, pilot production schemes, design data,
process of transforming design data into a product, configuration
design, integration design, layouts.'' Items in ``serial
production'' that are subsequently subject to ``development''
activities, such as those pertaining to quality improvements, cost
reductions, or feature enhancements, remain items in ``serial
production.'' Any new models or versions of such items developed
from such efforts are in ``development'' until and unless they enter
into ``serial production.''

* * * * *
    System. This is a combination of end items, components, parts,
accessories, attachments, firmware or software that are designed,
modified or adapted to operate together to perform a specialized
function.
* * * * *

PART 774--[AMENDED]

    38. The authority citation for 15 CFR 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 12, 2010, 75 FR 50681 (August 16, 2010).

    39. In Supplement No. 1 to part 774 (the Commerce Control List) is
amended:
    a. By removing the product group A heading ``SYSTEMS, EQUIPMENT AND
COMPONENTS'' and adding in its place the product group A heading ``END
ITEMS,'' ``EQUIPMENT,'' ``ACCESSORIES AND ATTACHMENTS,'' ``PARTS,''
``COMPONENTS,'' AND ``SYSTEMS''; and
    b. By adding quotes around the product group C heading MATERIALS.
    40. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities, and Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A018
is amended:
    a. By revising the ``related controls'' paragraph in the List of
Items Controlled section; and
    b. By removing and reserving ``items'' paragraph (a) in the List of
Items Controlled section, to read as follows:

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

* * * * *

0A018 Items on the Wassenaar Munitions List

* * * * *
    List of Items Controlled
* * * * *
    Related Controls: (1) See also 0A979, 0A988, and 22 CFR 121.1
Categories I(a), III(b-d), and X(a). (2) See 0A606.a for
construction equipment built to military specifications that was
classified under 0A108.a.
* * * * *
    Items:
    a. [RESERVED];
* * * * *

    41. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities, and Equipment (and
Miscellaneous Items),

ECCN 0A919 is amended by revising the ``Items'' paragraph to read as
follows:

0A919 ``Military commodities'' as Follows (see List of Items
Controlled)

* * * * *
    Items: ``Military commodities'' with all of the following
characteristics:
    a. Described on either the United States Munitions List (22 CFR
part 121) or the Munitions List that is published by the Wassenaar
Arrangement on Export Controls for Conventional Arms and Dual-Use
Goods and Technologies (as set out on its Web site at http://www.wassenaar.org), but not any item listed in any Export Control
Classification Number for which the last three characters are 018 or
any item in the ``600 series'';
    b. Produced outside the United States;
    c. Not subject to the International Traffic in Arms Regulations
(22 CFR parts 120-130) for a reason other than presence in the
United States; and
    d. Either of the following characteristics:
    d.1. Incorporate one or more cameras classified under ECCN
6A003.b.4.b; or
    d.2. Incorporate more than 10% ``600 series'' controlled
content.

    42. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities, and Equipment (and
Miscellaneous Items), is amended:
    a. By adding two Export Control Classification Numbers (ECCNs)
0A521 and 0A606 after ECCN 0A002 and before ECCN 0A918,
    b. By adding two ECCNs 0B521 and 0B606 after ECCN 0B006 and before
ECCN 0B986;
    c. By adding two ECCNs 0C521 and 0C606 after ECCN 0C201 and before
ECCN 0D001;
    d. By adding two ECCNs 0D521 and 0D606 after ECCN 0D001 and before
ECCN 0D999; and
    e. By adding two ECCNs 0E521 and 0E606 after ECCN 0E001 and before
ECCN 0E918, to read as follows;

0A521 Any Item Subject to the EAR That is not Listed Elsewhere in the
CCL but Which is Controlled for Export Because it Provides at Least a
Significant Military or Intelligence Advantage to the United States or
for Foreign Policy Reasons. 0A521 Items are Subject to RS1 Controls
With no License Exception Eligibility Other Than GOV for U.S.
Government Personnel and Agencies Under Sec.  740.11(b)(2)(ii). The
list of Items Determined To Be Classified Under ECCN 0A521 Controls is
Published in Supplement No. 5 to Part 774. The Policies and Procedures
Relating to ECCN 0A521 are set Forth in 15 CFR 742.6(a)(7)

0A606 Ground Vehicles, ``Parts'' and ``Components'', as follows:

    License Requirements

Reason for Control: NS, RS, AT, UN

------------------------------------------------------------------------
                Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 1, except 0A606.y.
RS applies to entire entry................  RS Column 1, except 0A606.y.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  Cote d'Ivoire, Democratic
                                             Republic of Congo, Eritrea,
                                             Iraq, Iran, Lebanon,
                                             Liberia, Libya, North
                                             Korea, Sierra Leone,
                                             Somalia, or Sudan, except
                                             0A606.y.
------------------------------------------------------------------------

License Exceptions

    LVS: $1500 for 0A606.a, .b, .c; N/A for Cote d'Ivoire,
Democratic Republic of Congo, Lebanon, Liberia, Sierra Leone, or
Somalia.
    GBS: N/A
    CIV: N/A
    STA: Paragraph (c)(2) of License Exception STA (Sec.
740.20(c)(2)) of the EAR may not be used for any item in 0A606.
Paragraph (c)(1) of License Exception STA (Sec.  740.20(c)(1)) may
not be used for any ``end item'' in 0A606, unless determined by BIS
to be eligible for License Exception STA in accordance with Sec.
740.20(g) (License Exception STA eligibility requests for ``600
series'' end items). See Sec.  740.20(g) for the procedures to
follow if you wish to request new STA eligibility for ``end items''
under this ECCN 0A606 as part of an export, reexport or in-country
(transfer) license application. ``End items'' under this entry that
have already been determined to be eligible for License Exception
STA are listed in Supplement No. 4 to part 774 and on the BIS Web
site at http://www.bis.doc.gov * * *.

List of Items Controlled

    Unit: Equipment in number; ``parts'' and ``components'' in $
value
    Related Controls: (1) See 0B606 for test, inspection and
production equipment that is ``specially designed'' to test,
inspect, produce, or develop commodities controlled by 0A606. (2)
See 0C606 for material that is ``specially designed'' for the
``development,'' or ``production'' of commodities controlled by
0A606. (3) See 0D606 for ``software'' for the ``development'',
``production'' or ``use'' of ground vehicles, ``parts'' and
``components'' controlled by 0A606. (4) See 0E606 for ``technology''
``required'' for the ``development'', ``production'' or ``use'' of
ground vehicles, ``parts'' and ``components'' controlled by 0A606.
(5) See ECCN 7A611 for guidance and navigation equipment. (6) Items
described in 22 CFR part 121, Category VII--Tanks and Other Military
Vehicles are subject to the export licensing jurisdiction of the
U.S. Department of State, Directorate of Defense Trade Controls. (7)
See ECCN 0A919 for foreign made ``military commodities'' that
incorporate more than 10% U.S.-origin ``600 series'' items.
    Related Definitions: N/A
    Items:
    a. Construction equipment built to military specifications,
including equipment ``specially designed'' for airborne transport;
crew protection kits used as protective cabs;
    b. Other equipment as follows:
    b.1. Tanks manufactured in or prior to 1955 (unless weapon is
functional);
    b.2. Armored combat vehicles manufactured in or prior to 1955
(unless weapon is functional);
    b.3. Armored combat support vehicles manufactured in or prior to
1955;
    b.4. Armored vehicles employing armor that provides ballistic
protection to level III (National Institute of Justice standard
0108.01, September 1985) or better but do not meet the criteria for
USML Category VII control (See Sec.  770.2(h)--Interpretation 8).
This includes unarmed all-wheel drive vehicles capable of off-road
use which have been manufactured or fitted with materials to provide
ballistic protection to level III or better.
    b.5. Ground transport vehicles (including trailers) ``specially
designed'' for non-combat military use not controlled under USML
Category VII);
    b.6. Military railway trains, except those ``designed or
modified'' for missile launch;
    b.7. Unarmored military recovery vehicles;
    b.8. Unarmored military amphibious vehicles;
    b.9. Unarmored vehicles with mounts or hard points for firearms
of .50 Cal. or less.
    c. Air-cooled diesel engines and engine blocks for armored
combat vehicles over 40-tons.
    d. Fully automatic continuously variable transmission for
tracked combat vehicles.
    e. through w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories and attachments''
that are ``specially designed'' for a commodity subject to control
in this ECCN or a defense article in USML Category VII.
    y. Specific ``parts,'' ``components,'' ``accessories and
attachments'' ``specially designed'' for a commodity subject to
control in this ECCN or a defense article in USML Category VII but
which have little or no military significance (see list of items
controlled).
    y.1. Brake system components (discs, rotors, shoes, drums,
springs, cylinders, lines, hoses);
    y.2 Alternators or generators;
    y.3. Axles;
    y.4. Batteries;
    y.5. Bearings (ball, roller, wheel);
    y.6. Blackout lights;
    y.7. Cables/cable assembles/connectors;
    y.8. Cooling system hoses;
    y.9. Filters (hydraulic, fuel, oil, air);
    y.10. Gaskets and o-rings;
    y.11. Hydraulic system hoses, fittings, couplings, adapters, and
valves;
    y.12. Latches and hinges;
    y.13. Lighting systems, fuses and components;
    y.14. Pneumatic hoses, fittings, adapters, couplings and valves;
    y.15. Seats, seat assemblies, seat supports, harnesses;
    y.16. Tires, except run flat;
    y.17. Windows, except those for armored vehicles.

    Note: Vehicles are considered manufactured after 1955 if, at any
time after 1955, any of the following changes occur:
    a. Propulsion upgrade to a formerly gasoline powered armored
vehicle with either diesel or multi-fuel capability;
    b. Armor upgrade to employ reactive armor;
    c. Fire control upgrade with a digital control system;
    d. Addition of laser designator or laser rangefinder;
    e. Addition of autoloader or similar assisted loading/round
selection;
    f. Increase of gun bore to larger than 90 mm; or
    g. Conversion to unmanned operation.

* * * * *
0B521 Any item subject to the EAR that is not listed elsewhere in
the CCL but which is controlled for export because it provides at
least a significant military or intelligence advantage to the United
States or for foreign policy reasons. 0B521 items are subject to RS1
controls with no license exception eligibility other than GOV for
U.S. Government personnel and agencies under Sec.  740.11(b)(2)(ii).
The list of items determined to be classified under ECCN 0B521
controls is published in Supplement No. 5 to part 774. The policies
and procedures relating to ECCN 0B521 are set forth in 15 C.F.R.
Section 742.6(a)(7).
0B606 Test, inspection and production ``equipment'' that is
``specially designed'' to test, inspect, produce, or develop
commodities controlled by 0A606.

License Requirements

Reason for Control: NS, RS, AT, UN

------------------------------------------------------------------------
                Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 1, except 0B606.y.
RS applies to entire entry................  RS Column 1, except 0B606.y.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry................  Cote d'Ivoire, Democratic
                                             Republic of Congo, Eritrea,
                                             Iraq, Iran, Lebanon,
                                             Liberia, Libya, North
                                             Korea, Sierra Leone,
                                             Somalia, or Sudan, except
                                             0B606.y.
------------------------------------------------------------------------

License Exceptions

LVS: $1500; N/A for Cote d'Ivoire, Democratic Republic of Congo,
Lebanon, Liberia, Sierra Leone, or Somalia.
GBS: N/A
CIV: N/A
STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2))
of the EAR may not be used for any item in 0B606.

List of Items Controlled

Unit: N/A
Related Controls: (1) See 0A606 for ground vehicles, ``parts'' and
``components.'' (2) See 0C606 for material that is ``specially
designed'' for the ``development,'' or ``production'' of commodities
controlled by 0A606. (3) See 0D606 for ``software'' for the
``development'', ``production'' or ``use'' of ground vehicles,
``parts'' and ``components'' controlled by 0A606. (4) See 0E606 for
``technology'' ``required'' for the ``development'', ``production''
or ``use'' of ground vehicles, ``parts'' and ``components''
controlled by 0A606. (5) Items described in 22 CFR part 121,
Category VII--Tanks and Other Military Vehicles are subject to the
export licensing jurisdiction of the U.S. Department of State,
Directorate of Defense Trade Controls. (6) See ECCN 0A919 for
foreign made ``military commodities'' that incorporate more than 10%
U.S.-origin ``600 series'' items.
Related Definitions: N/A
Items:

    a. Armor plate drilling machines, other than radial drilling
machines;
    b. Armor plate planing machines;
    c. Armor plate quenching presses; and
    d. Tank turret bearing grinding machines.
    e. through w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories,'' and
``attachments'' that are ``specially designed'' for a commodity
subject to control in this ECCN or a defense article in USML
Category VII.
    y. Specific ``parts,'' ``components,'' ``accessories,''
``attachments'' ``specially designed'' for a commodity subject to
control in this ECCN or a defense article in USML Category VII but
which have little or no military significance (see list of items
controlled).
    y.1. [RESERVED]
0C521 Any item subject to the EAR that is not listed elsewhere in
the CCL but which is controlled for export because it provides at
least a significant military or intelligence advantage to the United
States or for foreign policy reasons. 0C521 items are subject to RS1
controls with no license exception eligibility other than GOV for
U.S. Government personnel and agencies under Sec.  740.11(b)(2)(ii).
The list of items determined to be classified under ECCN 0C521
controls is published in Supplement No. 5 to part 774. The policies
and procedures relating to ECCN 0C521 are set forth in 15 CFR
742.6(a)(7).
0C606 Material that is ``specially designed'' for the
``development,'' or ``production'' of commodities controlled by
0A606.

License Requirements

Reason for Control: NS, RS, AT, UN

------------------------------------------------------------------------
                Control(s)                          Country chart
------------------------------------------------------------------------
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................  Cote d'Ivoire, Democratic
                                             Republic of Congo, Eritrea,
                                             Iraq, Iran, Lebanon,
                                             Liberia, Libya, North
                                             Korea, Sierra Leone,
                                             Somalia, or Sudan.
------------------------------------------------------------------------

License Exceptions

    LVS: $1500; N/A for Cote d'Ivoire, Democratic Republic of Congo,
Lebanon, Liberia, Sierra Leone, or Somalia.
    GBS: N/A
    CIV: N/A
    STA: Paragraph (c)(2) of License Exception STA (Sec.
740.20(c)(2)) of the EAR may not be used for any item in 0C606.

List of Items Controlled

    Unit: N/A
    Related Controls: (1) See 0A606 for ground vehicles, ``parts''
and ``components.'' (2) See 0B606 for test, inspection and
production equipment that is ``specially designed'' to test,
inspect, produce, or develop commodities controlled by 0A606. (3)
See 0D606 for ``software'' for the ``development'', ``production''
or ``use'' of ground vehicles, ``parts'' and ``components''
controlled by 0A606. (4) See 0E606 for ``technology'' ``required''
for the ``development'', ``production'' or ``use'' of ground
vehicles, ``parts'' and ``components'' controlled by 0A606. (5)
Items described in 22 CFR part 121, Category VII--Tanks and Other
Military Vehicles are subject to the export licensing jurisdiction
of the U.S. Department of State, Directorate of Defense Trade
Controls. (6) See ECCN 0A919 for foreign made ``military
commodities'' that incorporate more than 10% U.S.-origin ``600
series'' items.
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN
heading.
* * * * *
0D521 Any item subject to the EAR that is not listed elsewhere in
the CCL but which is controlled for export because it provides at
least a significant military or intelligence advantage to the United
States or for foreign policy reasons. 0D521 items are subject to RS1
controls with no license exception eligibility other than GOV for
U.S. Government personnel and agencies under Sec.  740.11(b)(2)(ii).
The list of items determined to be classified under ECCN 0D521
controls is published in Supplement No. 5 to part 774. The policies
and procedures relating to ECCN 0D521 are set forth in 15 CFR
742.6(a)(7).
0D606 ``Software'' ``specially designed'' for the ``development,''
``production,'' or ``use'' of ``equipment,'' ``parts'' and
``components'' controlled by 0A606.

License Requirements

Reason for Control: NS, RS, AT, UN

------------------------------------------------------------------------
                Control(s)                          Country chart
------------------------------------------------------------------------
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................  Cote d'Ivoire, Democratic
                                             Republic of Congo, Eritrea,
                                             Iraq, Iran, Lebanon,
                                             Liberia, Libya, North
                                             Korea, Sierra Leone,
                                             Somalia, or Sudan.
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A
    STA: Paragraph (c)(2) of License Exception STA (Sec.
740.20(c)(2)) of the EAR may not be used for any software in 0D606.

List of Items Controlled

    Unit: N/A
    Related Controls: (1) See 0A606 for ground vehicles, ``parts''
and ``components.'' (2) See 0B606 for test, inspection and
production equipment that is ``specially designed'' to test,
inspect, produce, or develop commodities controlled by 0A606. (3)
See 0C606 for material that is ``specially designed'' for the
``development,'' or ``production'' of commodities controlled by
0A606. (4) See 0E606 for ``technology'' ``required'' for the
``development,'' ``production'' or ``use'' of ground vehicles,
``parts'' and ``components'' controlled by 0A606. (5) Items
described in 22 CFR part 121, Category VII--Tanks and Other Military
Vehicles are subject to the export licensing jurisdiction of the
U.S. Department of State, Directorate of Defense Trade Controls. (6)
See ECCN 0A919 for foreign made ``military commodities'' that
incorporate more than 10% U.S.-origin ``600 series'' items.
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN
heading.
* * * * *
0E521 Any item subject to the EAR that is not listed elsewhere in
the CCL But which is controlled for export because it provides at
least a significant military or intelligence advantage to the United
States or for foreign policy reasons. 0E521 items are subject to RS1
controls with no license exception eligibility other than GOV for
U.S. Government personnel and agencies under Sec.  740.11(b)(2)(ii).
The list of items determined to be classified under ECCN 0E521
controls is published in Supplement No. 5 to part 774. The policies
and procedures relating to ECCN 0E521 are set forth in 15 CFR
742.6(a)(7).
0E606 ``Technology'' ``required'' for the ``development,''
``production'' or ``use'' of ``equipment,'' ``parts'' and
``components'' controlled by 0A606.

License Requirements

Reason for Control: NS, RS, AT, UN

------------------------------------------------------------------------
                Control(s)                          Country chart
------------------------------------------------------------------------
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................  Cote d'Ivoire, Democratic
                                             Republic of Congo, Eritrea,
                                             Iraq, Iran, Lebanon,
                                             Liberia, Libya, North
                                             Korea, Sierra Leone,
                                             Somalia, or Sudan.
------------------------------------------------------------------------

License Exceptions

    CIV: N/A
    TSR: N/A
    STA: Paragraph (c)(2) of License Exception STA (Sec.
740.20(c)(2)) of the EAR may not be used for any technology in
0D606.

List of Items Controlled

    Unit: N/A
    Related Controls: (1) See 0A606 for ground vehicles, ``parts''
and ``components''. (2) See 0B606 for test, inspection and
production equipment that is ``specially designed'' to test,
inspect, produce, or develop commodities controlled by 0A606. (3)
See 0C606 for material that is ``specially designed'' for the
``development,'' or ``production'' of commodities controlled by
0A606. (4) See 0D606 for ``software'' for the ``development,''
``production'' or ``use'' of ground vehicles, ``parts'' and
``components'' controlled by 0A606. (5) Items described in 22 CFR
part 121, Category VII--Tanks are subject to the export licensing
jurisdiction of the U.S. Department of State, Directorate of Defense
Trade Controls. (6) See ECCN 0A919 for foreign made ``military
commodities'' that incorporate more than 10% U.S.-origin ``600
series'' items.
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN
heading.

    43. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9--Aerospace and Propulsion, Export Control Classification
Number (ECCN) 9A018 is amended:
    a. By revising the ``related controls'' paragraph in the List of
Items Controlled section; and
    b. By removing and reserving ``items'' paragraph (b) in the List of
Items Controlled section, to read as follows:

9A018 Equipment on the Wassenaar Arrangement Munitions List.

* * * * *

List of Items Controlled

* * * * *
    Related Controls: (1) Parachute systems designed for use in
dropping military equipment, braking military aircraft, slowing
spacecraft descent, or retarding weapons delivery; instrument flight
trainers for combat simulation; military ground armed or armored
vehicles and parts and components specific thereto described in 22
CFR part 121, Category VII; and all-wheel drive vehicles capable of
off-road use that have been armed or armored with articles described
in 22 CFR part 121, Category XIII (See Sec.  770.2(h)--
Interpretation 8) are all subject to the export licensing
jurisdiction of the U.S. Department of State, Directorate of Defense
Trade Controls.
    (2) See 0A606.b.4 for ground transport vehicles and unarmed all-
wheel drive vehicles that were classified under 9A018.b.
* * * * *
    Items:
* * * * *
    b. [RESERVED].
* * * * *
    44. Add Supplement No. 4 to Part 774, to read as follows:

SUPPLEMENT NO. 4 TO PART 774--LISTING OF LICENSE EXCEPTION STA
ELIGIBILITY DETERMINATIONS PURSUANT TO Sec.  740.20(g) FOR ``600
SERIES'' ``END ITEMS'' ELIGIBLE FOR LICENSE EXCEPTION STA UNDER Sec.
740.20(c)(1)

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

------------------------------------------------------------------------
``600 series'' ``end items'' identifier  Date of initial approval of STA
 by ECCN, ECCN ``items'' paragraph or     eligibility request (i.e., the
 other end item descriptors.              date on which License
Note 1: For the other end item            Exception STA first may be
 descriptors, the descriptions of these   used, provided the applicable
 munitions end items must match, (e.g.,   terms of License Exception STA
 by model number or other equally         are met for the transaction).
 specific descriptor), the descriptions
 of the end items in the RWA notices.
 The description does not necessarily
 need to be limited to a particular
 manufacturer.
Note 2: Other end item descriptors
 (such as model number) will only be
 used in combination with the ECCN
 level identifier.
------------------------------------------------------------------------

    45. Add Supplement No. 5 to Part 774, to read as follows:

SUPPLEMENT NO. 5 TO PART 774--ITEMS CLASSIFIED UNDER ECCNS 0A521,
0B521, 0C521, 0D521, AND 0E521

    The following table lists items subject to the EAR that are not
listed elsewhere in the CCL, but which the Department of Commerce,
with the concurrence of the Departments of Defense and State, has
determined warrant control for export because the items provide at
least a significant military or intelligence advantage to the United
States or for foreign policy reasons.

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

------------------------------------------------------------------------
Item descriptor.................  Date of initial or  Date when the item
Note: The description must match   subsequent BIS      will be
 by model number or a broader      classification.     designated EAR99,
 descriptor that does not                              unless
 necessarily need to be company                        reclassified in
 specific.                                             another ECCN or
                                                       the 0Y521
                                                       classification is
                                                       reissued.
------------------------------------------------------------------------

    Dated: July 12, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-17846 Filed 7-12-11; 4:15 pm]
BILLING CODE 3510-33-P