items and commodities.
    The CCL also includes a convention regarding the use of single
quotes. Single quotes on the CCL identify a term as a defined term in
the context of a particular ECCN. However, even within BIS or other
parts of the U.S. Government these conventions as they relate to the
use of quotes can sometimes become more complex than needed. As a
longer term project, BIS intends to conduct a review on the use of
quotation marks on the CCL and in the larger EAR to determine if a
simpler approach could be developed, such as possibly eliminating the
use of double quotation marks to avoid the incorrect negative inference
that the only defined terms are those with double quotation marks. The
opposite end of the spectrum would be to add quotes around all defined
terms, but that would hinder the readability of the CCL.
    The use of quotation marks on the CCL is intended to be an aid to
alert the reader to terms used on the CCL that are defined in part 772.
In this sense the quotes are helpful, but a good compliance practice is
to familiarize yourself with part 772 and the terms that are defined
there, and when reviewing a control parameter on the CCL that uses a
term that is not in quotes to be aware it may be defined in part 772.

(4) Removal of Fourteen ECCNs Subject to the Exclusive Jurisdiction of
the Nuclear Regulatory Commission (NRC)

(A) Removal of Fourteen ECCNs
    In the November 29 proposed rule, BIS proposed removing fourteen
ECCNs to eliminate certain cross-references to controls that are under
the exclusive jurisdiction of other agencies. The

current CCL includes forty-nine ECCNs that refer to items that are
subject to the exclusive jurisdiction of the Department of Energy
(DOE), the NRC, or the Department of State. They constitute
approximately 10% of the total number of ECCNs on the CCL. Of the
forty-nine ECCNs, fourteen are subject to the export licensing
authority of the NRC at 10 CFR part 110. This final rule is removing
these fourteen ECCNs from the CCL. The fourteen ECCNs are 0A001, 0B001,
0B002, 0B003, 0B004, 0B005, 0B006, 0C001, 0C002, 0C004, 0C005, 0C006,
0C201 and 1C012. These ECCNs are Nuclear Trigger List items, so the
jurisdiction of these items is already established under U.S. export
controls and, as explained below, there is no need to include this
additional cross reference from the CCL to the controls maintained by
the Nuclear Regulatory Commission.
    BIS's original purpose for including these ECCNs on the CCL was to
supplement Sec.  734.3 (Items subject to the EAR) under paragraph
(b)(1), which describes items that are not subject to the EAR because
they are subject to the exclusive jurisdiction of another agency of the
U.S. Government, and to supplement the jurisdiction information for the
other U.S. Government agencies found in Supplement No. 3 to part 730
(Other U.S. Government Departments and Agencies with Export Control
Responsibilities). BIS also included these ECCNs to better align the
CCL with the European Union's control lists that are primarily based on
the multilateral export control regimes. However, by including
references to other agencies' controls in specific ECCNs there is the
potential that such ECCN references will become out of date if the
other agencies update their respective regulations and the
corresponding changes are not made in the EAR in a timely manner.
    For example, on September 7, 2011 (76 FR 55278), the National
Nuclear Security Administration, Department of Energy (DOE), published
a notice of proposed rulemaking that proposed various amendments to
regulations concerning unclassified assistance to foreign atomic energy
activities. These proposed revisions were intended to reduce
uncertainties for industry users concerning which foreign nuclear
related activities by U.S. persons are ``generally authorized'' under
the regulation and which activities require a ``specific
authorization'' from the Secretary of Energy. However, if the ECCNs on
the CCL that currently refer to DOE and the NRC controls are not
updated, the uncertainties for exporters, reexporters and transferors
would increase because of inconsistencies among the regulations. This
rule only removes the fourteen ECCNs that refer to NRC controls. The
ECCN that refers to DOE export controls is ECCN 0E001, and that ECCN is
not being removed at this time because it also includes certain
portions of the entry that are ``subject to the ITAR.'' However, to
avoid uncertainties for exporters, reexporters and transferors as noted
in the example above, BIS will endeavor to remove cross references to
ECCNs that refer to DOE and NRC controls to avoid inconsistencies among
regulations. Given that the NRC respective regulations are controlling
in this area and these ECCNs are only acting as a cross reference, BIS
proposed the removal of these ECCNs in the November 29 rule.
    Although BIS proposed to remove the cross-references, BIS has
determined there still is utility in including general cross references
to other agencies' controls, including after the review of the comments
received in response to the November 29 rule. Thus, this final rule
includes a general cross reference at the beginning of the CCL in a
revised Sec.  774.1 (Introduction) that contains those ECCNs that have
been reserved and are subject to the exclusive jurisdiction of another
agency of the U.S. Government. In addition, the related control
paragraphs of ECCNs contain cross references to controls of other
agencies to the extent that such controls are similar to or related to
the controls of certain ECCNs.
    The remaining thirty-five of the forty-nine ECCNs refer to items
that are ``subject to the ITAR,'' which is maintained by the Department
of State. Given the ongoing review of the United States Munitions List
(USML) that is being conducted under the ECR Initiative, it is
premature to remove or revise these thirty-five ECCNs. In addition,
given the number of cross references, in particular in Categories 7 and
9 of the CCL, to these thirty-five ECCNs, BIS determined that removing
the ECCNs that are ``subject to the ITAR'' should be addressed once the
review of the USML has been completed. Therefore, BIS is not
implementing any additional changes in this final rule for those
remaining 35 ECCNs.
    BIS received two comments on these proposed changes in the November
29 rule. One commenter supported and one commenter opposed the changes.
Commenter No. 7 supported the removal of the fourteen ECCNs, stating
that these changes will avoid regulatory confusion and eliminate the
need for BIS to continually update controls administered by a different
agency. BIS agrees. Commenter No. 3 opposed the removal of these
fourteen ECCNs, stating that the removal of the fourteen ECCNs would
not result in clarity but rather in complexity. Commenter No. 3
included a number of reasons supporting their position and also
included suggested alternatives. BIS reviewed these comments and
responds to these comments below. BIS's analysis also included
conducting analysis of data in the Automated Export System (AES) for
these fourteen ECCNs to further evaluate these changes. The analysis of
the AES data in particular highlighted for BIS and the NRC that these
cross references have not been reported properly in AES in certain
cases, such as EAR license exceptions or No License Required (NLR)
designations being reported for some of these fourteen ECCNs that are
subject to the NRC. BIS is working with the U.S. Census Bureau and the
NRC at this time to create a change in AES that will create a fatal
error for AES filers who try to use any type of EAR authorization or
NLR designation for these fourteen ECCNs that are subject to the
exclusive jurisdiction of the NRC and that are being removed from the
CCL in this final rule. BIS addresses the comments received below, but
the review of the AES data also played an important role in informing
BIS's decision to move forward with the implementation of the removal
of these fourteen ECCNs as proposed in the November 29 rule with minor
modifications based on the review of the public comments.
    Commenter No. 3 indicated the removal of the fourteen ECCNs leaves
exporters without valid ECCNs and no viable alternative is offered.
Commenter No. 3 noted the proposed replacement list in Sec.  774.1 of
the EAR is little more than a difficult-to-find and difficult-to-use
footnote. BIS understands that certain exporters are more comfortable
with using the CCL than the NRC's control list, but the fact remains
these items are not subject to the EAR. Therefore, although these
fourteen ECCNs alert the public that these items are subject to the
exclusive jurisdiction of the NRC, exporters still must review the
NRC's control list and regulations to determine their responsibilities
under the NRC regulations. There is and can be no easy substitute for
reviewing the NRC's control list. The new CCL Order of Review that was
added to the EAR in the initial implementation final rule published on
April 16, 2013 further clarified this issue in terms of the proposed
order of review of the CCL. If the item is not subject to the EAR

because it is subject to the exclusive jurisdiction of another U.S.
Government export control agency, you should exit the EAR and consult
the other agency's controls. Other parts of the EAR, such as Supplement
No. 3 to part 730 referenced above and Sec.  734.3(b), also address
this issue. BIS has made some changes to Sec.  774.1 to make those
references more useful as a historical reference to these fourteen
ECCNs and to also act as a better cross reference to the multilateral
export control regime entries that applied to these fourteen ECCNs at
the time of their removal.
    Commenter No. 3 also noted the negative impact on Customs and
Border Protection (CBP) because CBP cannot rely on those fourteen ECCNs
anymore. The commenter noted that the NRC's regulations under 10 CFR
part 110 do not use the standard ECCN format, so Customs cannot
directly relate ECCNs on the shipping document to NRC export controls.
The commenter noted if these fourteen ECCNs are removed as proposed in
the November 29 rule, Customs officers would need to refer to an old
version of the CCL or possibly to the European Union (EU) control list.
BIS does not agree with this comment. CBP does not and should not rely
on the CCL for items that are subject to the exclusive jurisdiction of
another agency of the U.S. Government. For items described in these
fourteen ECCN cross references or any other item that is subject to the
exclusive jurisdiction of the NRC, CBP evaluates whether the item is
subject to the exclusive jurisdiction of the NRC and whether it is
being exported in accordance with the NRC's regulations. The EAR does
not enter into their analysis. If there is any question regarding the
jurisdiction or classification of the item or whether it is being
exported in accordance with the NRC regulations, CBP would follow up
directly with the NRC, similar to what is done under the EAR for items
that are subject to the EAR. As noted above, the NRC's list and
regulations control the transaction; therefore, CBP would refer
directly to the NRC's list.
    Commenter No. 3, who opposes the change, also noted that if the
fourteen NRC ECCNs were removed from CCL, an exporter could erroneously
choose to use no ECCN, to invent a non-standard ECCN, or to use the
(now questionably-documented) former CCL ECCN. As BIS noted in response
to the previous comment, the exporter should use the classification for
the item based on the NRC's control list. The exporter should also use
the applicable NRC authorization or designation when entering data in
AES. Under no circumstances should an EAR authorization or NLR
designation be used in AES for an item that is subject to the exclusive
jurisdiction of the NRC. As noted above, BIS and the NRC are working
with the U.S. Census Bureau to create a fatal error, which is expected
to be implemented in 2014, to prevent filers from being able to
reference EAR authorizations or the NLR designation.
    Commenter No. 3 also noted the proposed language for some ECCNs is
cumbersome, awkward and confusing. Commenter No. 3 offered ECCN 3A233
as an example, stating the proposed language is cumbersome and awkward,
requiring 40 words (including two defined terms) to describe an
exclusion that the current language accomplishes in six words. On a
related issue this commenter stated that the proposed changes do not
prevent cross-references from becoming out of date, and therefore might
not reduce maintenance. In the existing CCL, the NRC ECCNs are clearly
partitioned from the BIS ECCNs, but the proposed rule would blur the
distinction, in some cases by adding Heading Notes (e.g., 3A225) and in
other cases modifying the chapeau itself (e.g., 3A233). The commenter
noted that both approaches incorporate more tightly into the CCL the
NRC control language that BIS wishes to remove. The commenter asserted
that the probable outcome of this proposal would increase rather than
decrease BIS maintenance. As a result of BIS's review of these
comments, BIS has made changes in the final rule. BIS will not be
implementing the Heading Notes. In other places where a large amount of
text was needed, BIS has removed the detailed description of the NRC
controls in ECCNs that previously referenced one or more of the
fourteen ECCNs being removed. This final rule instead includes a
general reminder that items that are subject to the exclusive
jurisdiction of the NRC are not subject to the scope of the particular
ECCN in question. For example, 3A233, which was identified by the
commenter as overly complex and ambiguous as proposed for revision in
the November 29 rule, is simplified in this final rule as described in
the next paragraph, along with similar changes being made on the CCL
for those conforming changes to the fourteen ECCNs being removed in
this final rule.
    The changes in this final rule to 3A233 clarify the mass
spectrometers controlled under this ECCN do not include ``items that
are subject to the export licensing authority of the Nuclear Regulatory
Commission (see 10 CFR part 110).'' This concept is already specified
in other parts of the EAR, including the new CCL Order of Review
referenced above, but BIS believes this simplified approach will
address the concern noted by the commenter, while still alerting the
public that certain items related to 3A233 may be subject to the NRC's
regulations. BIS is making changes to similar ECCNs where conforming
changes are being made, in particular to those ECCNs where new heading
notes were proposed. BIS will continue to evaluate the best approach
for referencing the NRC's controls and in the future may simply add
such information to the ``related controls'' paragraphs of these ECCNs
that are subject to the EAR. However, for purposes of the changes being
implemented in this final rule, BIS has determined this modified
approach best achieves the objectives of the rule to remove these
fourteen ECCNs and to make appropriate conforming changes to the CCL
ECCNs where needed, while not re-creating the need to update the CCL to
track with changes to the NRC regulations. The commenter correctly
noted this was one of the rationales provided for the November 29
changes. BIS agrees with the commenter that a slightly revised approach
is needed in this final rule to achieve those objectives.
    Commenter No. 3 also noted that timely maintenance of the NRC ECCNs
might not be needed. This commenter believed the existing structure of
the CCL provides clear and adequate notice to exporters that certain
items are subject to the export licensing jurisdiction of the NRC.
Therefore, timely maintenance of fourteen NRC ECCNs in the CCL is not
required. For the reasons noted above, BIS does not agree with this
comment; NRC's regulations would control the transaction, not the CCL,
regardless of whether the commenter believes the CCL is an easier list
to review. The commenter may wish to contact the NRC and make
suggestions for how the NRC control list could be reconfigured to make
it more user friendly and more consistent with the structure used by
the multilateral export control regimes. The premise that CCL entries
are controlling or that the CCL entries can be relied on is incorrect.
This analytical approach demonstrates an incorrect overreliance on the
CCL for items that are not subject to the EAR, and further reinforces
BIS's decision to remove these fourteen ECCNs.
    Commenter No. 3 also noted that because the Nuclear Trigger List
rarely changes, it is not difficult to stay current with it. BIS agrees
that the Nuclear Trigger List rarely changes, but given the importance
of exporters making a correct determination regarding the

export control jurisdiction for an item, and the fact that there is a
real possibility of the NRC control list and the CCL entries' becoming
inconsistent due to ill-timed updating, BIS has determined that the
best approach is to create a clean break between the CCL and the NRC
regarding items that are subject to the exclusive jurisdiction of the
NRC.
    Commenter No. 3 also noted the NRC rule example cited in the
November 29 proposed rule did not change the Nuclear Trigger List. The
cited NRC rule only clarified when a license was required. This
commenter is correct, but based on the commenter's earlier comments
about relying on the CCL and the fact that it appears from the AES data
that certain exporters may not be referring at all to the NRC
regulations and simply relying on one of those fourteen ECCNs and using
an EAR authorization or NLR designation, any change to the NRC
regulations in particular regarding license requirements is still
relevant. In addition, there are other examples where the current NRC
controls may have greater or less specificity than what is currently
reflected on the CCL, which again speaks to the importance of
exporters' reviewing the actual NRC control lists instead of relying on
the CCL to perform that function for them. This commenter also
suggested that ECCN 0B002 contains an error and does not match the
Nuclear Trigger List.
    BIS reviewed ECCN 0B002 and concluded that the current 0B002 is
consistent with the multilateral control list. However, this example
provides further support for the decision to remove the fourteen ECCNs
so that all descriptions of NRC controls will be in NRC regulations.
    BIS provides this paragraph to provide additional background on the
reference above to the Nuclear Trigger List and how that fits in with
the U.S. export control system. The Nuclear Suppliers Group controls
two groups of items. The Part 1 Annex, which is often referred to as
the Trigger List, controls those items that are uniquely nuclear, such
as nuclear reactors and components; centrifuges and other enrichment
equipment; nuclear materials such as uranium and plutonium; heavy water
facilities, etc. These and other related items are controlled by the
NRC under 10 CFR Part 110. The related Part 1 technology is controlled
by the Department of Energy under 10 CFR Part 810. The Part 2 or Dual
Use annex, covers those items that have both a nuclear and non-nuclear
end use such as machine tools, pressure transducers, mass
spectrometers, etc. and are under the licensing jurisdiction of the
Department of Commerce. The International Atomic Energy Agency (IAEA)
publishes both annexes under INFCIRC/254/Part1 and INFCIRC/254/Part 2.
They may also be viewed on the Nuclear Suppliers Group Web site.
    Commenter No. 3 also noted that the complexity of text could
potentially also create burden for U.S. companies in the event that
foreign export control authorities were to request clarification on
whether the scope of, for example, U.S. ECCN 3A233 is equivalent to the
scope of their national ECCN 3A233. BIS does not see this as a burden
and also does not see this as the type of information that should be
expected to be provided by a U.S. company. The U.S. Government is
available to answer any questions from foreign parties, including other
regime member governments, about how U.S. export control lists
correspond with multilateral export control regime control lists.
Therefore, if a U.S. company receives such a request, they may simply
direct those foreign parties to contact the applicable agency of the
U.S. Government, in this case the NRC, for resolution.
    Commenter No. 3 noted that alignment with the EU control list
remains a worthwhile goal. The commenter noted that the November 29
proposed rule did not seek to explain why this goal is no longer
worthwhile. BIS has added in this final rule references to the
multilateral export control regimes' control list to partially address
this comment. The U.S. export control system implements U.S. Government
commitments to the multilateral export control regimes in each of the
respective agency control lists as applicable for the particular
regimes. The removal of these fourteen ECCNs does not change the
commitment of the U.S. Government to control such items that are
reflected in the NRC control list. For the reasons noted above, though,
not removing these fourteen ECCNs on the CCL may cause ambiguity
regarding the proper export control jurisdiction between the CCL and
the NRC's control lists. For that reason, this final rule removes those
entries and replaces them with more general cross references to the
NRC's control lists.
    Commenter No. 3 noted that the removal of these ECCNs could set an
undesirable precedent. This commenter believed U.S. action to split
what had hitherto been a single control list into multiple lists could
establish a precedent for other countries to do likewise--resulting in
more complexity in global export control system. BIS does not agree the
removal sets a bad precedent for other countries. Each country that is
a member of the multilateral export control regimes implements those
multilateral agreements into its own export control system, including
determining what types of agency structure (single agency or multiple
agencies) and type of control list (single control list or multiple
control lists) is most appropriate under its respective national export
controls. The importance is placed on implementing U.S. Government
multilateral regime commitments, which the U.S. Government has done.
This includes the removal of these fourteen ECCNs that, although the
cross-references to the NRC controls are being removed from the CCL,
are still controlled under the NRC. Therefore, the U.S. Government is
meeting its obligations to the Nuclear Suppliers Group and other
regimes as applicable, so BIS does not agree that the removal of these
fourteen ECCNs will set a bad precedent.
    Commenter No. 3 noted that these removals are contrary to the
``single control list'' goal of export control reform. BIS does not
agree. The NRC and DOE regulations are not currently part of the single
list objective of the ECR Initiative, so there is no inconsistency with
this ECR objective.
    Commenter No. 3 also offered two options for BIS to consider
instead of removing these fourteen ECCNs, along with various proposed
conforming changes to other ECCNs. The first option was retaining these
ECCNs because it creates an easy way to identify and classify these
items. The commenter asserted that retention of the fourteen NRC ECCNs
on the CCL would provide a natural method for U.S. exporters to use an
ECCN that is automatically and instantaneously recognized by all
parties (exporter, importer, licensing officer, or enforcement officer)
worldwide. For the reason discussed above in this section under (4)(A),
BIS does not accept this approach.
    The second option was to retain the fourteen ECCNs, but limit them
to the headings with a cross reference back to the NRC. Under this
alternative, the regulations would not remove the fourteen ECCN
chapeaux within the CCL, but instead would delete the various
subparagraphs of those ECCNs, and for ``List of Items Controlled''
indicate ``refer to NRC at 10 CFR 110.'' Simultaneously (so as to
preclude the scenario described in option 1, above), the commenter
suggested that BIS undertake joint BIS/NRC action to update the NRC
control list to use the standard ECCN format. As noted above,

BIS has simplified the cross references to these fourteen ECCNs that
were removed in the ECCNs that are retained on the CCL based, in part,
on this comment. However, for the reasons noted above, BIS believes
removing the fourteen ECCNs is the best way to achieve the policy
objectives identified, so BIS does not accept this change.
(B) Changes to the CCL To Conform to the Removal of These Fourteen
ECCNs
    In addition to removing the fourteen ECCNs, this final rule also
makes conforming changes to eleven ECCNs that would be retained on the
CCL. The ECCNs that are revised by this rule contain references to one
or more of the fourteen ECCNs that are being removed.
    The removal of the fourteen ECCNs should not affect the existing
controls for items subject to the EAR. However, given the relationship
between the fourteen ECCNs removed and the ten ECCNs where conforming
changes were made, BIS noted in the November 29 proposed rule that it
was particularly interested whether the proposed changes accurately
capture the intent of the previous references (i.e., the references to
the fourteen ECCNs that would be removed in the ten ECCNs that are
retained on the CCL). These comments and BIS' responses are discussed
above in this section.
    The final rule makes conforming changes to the following eleven
ECCNs: 1A290, 1C107, 1C240, 1C298, 3A225, 3A226, 3A227, 3A233, 3A999,
6A005, and 6A205. This rule's revisions consist of the following:
    ECCNs 3A225, 3A226, 3A227, 3A233, 6A005, and 6A205. This final rule
revises seven ECCN headings (1C240, 3A225, 3A226, 3A227, 3A233, 6A005,
and 6A205). This rule takes this approach to minimize the number of
changes that would need to be made, while still ensuring the headings
reflect the intended scope of these six ECCNs.
    On the CCL, these seven ECCN headings include references to some of
the fourteen ECCNs that are being removed as a shorthand way of
communicating the scope of items controlled. Therefore, the removal of
fourteen ECCNs requires that a broader description be added to the
headings of these seven ECCNs. In the November 29 rule, BIS indicated
that if only one of the fourteen ECCNs that would be removed is
referenced, then BIS believed that in most cases it is easy to
incorporate the text of the removed ECCN into the heading of the seven
ECCNs. However, there are certain ECCNs that reference one or more of
the fourteen ECCNs that are being removed by this rule. In the cases
where multiple ECCNs are referenced, an effort to insert all the text
into the headings as a conforming change would not be feasible.
However, for other ECCNs, the November 29 rule proposed adding heading
notes, which would provide more space to describe the substance of the
ECCNs that would be removed from the respective headings. After further
review, BIS determined a simpler approach could be taken that is also
more consistent with the existing EAR by simply including text to alert
the public those eleven ECCNs exclude items that are subject to the
export licensing authority of the Nuclear Regulatory Commission (see 10
CFR part 110).
    ECCNs 1A290, 1C107 and 1E001. This final rule revises three
``related controls'' paragraphs in ECCNs 1A290, 1C107 and 1E001. These
changes revise references to one or more of the fourteen removed ECCNs
in each of the three remaining ECCNs and replace them with a reference,
in the related controls paragraph, to the NRC regulations. These
changes will reduce the need for cross-referencing in the CCL to the
fourteen removed ECCNs. The November 29 rule proposed to describe the
NRC controls in the related controls paragraph. The November 29 rule
described the approach being adopted as an alternative. BIS welcomed
comments from the public regarding whether this alternate approach of
simply using broad descriptors or some other approach not yet
considered by BIS would be better than what was proposed. After
reviewing the public comments, as discussed above, BIS decided to adopt
this alternate approach consistent with the above described cross
references to the fourteen removed ECCNs in ECCN headings.
    ECCN 1E001. This final rule also revises 1E001 by removing the
reference to 1C012 in the License Exception STA paragraph in the
License Exceptions section. This ECCN is subject to the exclusive
jurisdiction of another agency. Thus, License Exception STA could never
be used as the authority to export an item described in 1C012. BIS did
not receive any comments on this change, so this change is implemented,
as proposed, in this final rule.
    ECCN 1C298. This final rule revises one CCL note in ECCN 1C298 to
remove references to one or more of the fourteen ECCNs that would be
removed by this rule. BIS did not receive any comments on this change,
so this change is implemented, as proposed, in this final rule.
(C) Adding a General Cross Reference to the Fourteen ECCNs That Would
Be Removed
    In Sec.  774.1 (Introduction), this final rule redesignates the
introductory text of the section as paragraph (a) with the heading
``Scope of the control list,'' and adds a paragraph (b) with the
heading ``ECCN cross-references for items subject to the exclusive
jurisdiction of another agency.'' The introductory text of paragraph
(b) indicates that prior to the date of publication in the Federal
Register of this final rule, the CCL contained fourteen ECCNs that were
included as cross references on the CCL to the export control
regulations administered by the NRC. Paragraph (b) identifies ECCNs
formerly listed on the CCL that were subject to the jurisdiction of the
NRC at 10 CFR part 110. This rule is adding a note to paragraph (b) to
indicate that ECCNs 0D001 and 0E001 (ECCNs that are retained on the
CCL) were subject to the jurisdiction of the NRC at 10 CFR part 110 or
jurisdiction of the DOE at 10 CFR part 810, but also have certain
portions that, as of the date of publication of this rule, were
``subject to the ITAR.'' These ECCNs are retained on the CCL as a cross
reference. For the reasons noted above, BIS will implement these
changes, as proposed, in this final rule.

(5) Revisions to Shipping Tolerances and Removal of All ``Unit''
Paragraphs

    BIS in this final rule is revising the way shipping tolerances are
calculated and applied under the EAR. This rule revises Sec.  750.11
(Shipping tolerances) to state that all items are licensed based on
both quantity and value of the items. Quantity will be denominated in
the unit of quantity that is in general commercial usage for the trade
of each item. All licenses will be strictly limited by the quantity
approved on the license and no shipping tolerance will be available to
exceed that quantity. A shipping tolerance of ten percent will be
available on the total approved value for all commodities subject to
the EAR to account for price uncertainty and price inflation over the
four year validity period of the license. Additionally, this rule
removes the ``Unit'' paragraph from the List of Items Controlled
section of every ECCN on the CCL. BIS will no longer differentiate
between items based on unit for the availability of shipping
tolerances, so all commodities will be licensed in the unit of quantity
commonly used in the trade of that good. This final rule also makes
conforming changes to paragraph (d)(2)(iii)(A) of Sec.  738.2 (Commerce
Control List (CCL) structure); Sec.  738.4

(Determining whether a license is required); Sec.  742.2 (Proliferation
of chemical and biological weapons)(e); paragraph (e)(Quantity) and
(f)(Units) of Supplement No. 1 to Part 748--BIS-748P, BIS-748P-A: Item
Appendix, and BIS-748P-B: End-User Appendix; Multipurpose Application
Instructions;, and paragraphs (c)(1)(ii), (c)(1), (viii) and (f) of
Sec.  750.7 (Issuance of Licenses).
    BIS is making these revisions to the EAR as a result of public
comments received in response to the proposed rule and to a notice of
inquiry (NOI), Request for Public Comments on Shipping Tolerances for
Export Licenses Issued by the Bureau of Industry and Security (BIS),
that BIS published on July 5, 2012 (77 FR 39679). In the NOI, the
public was requested to provide responses to the following three
issues:
    (1) If the current Export Administration Regulations (EAR) shipping
tolerance rules should be maintained or if changes should be made that
facilitate automatic calculation of the remaining license value;
    (2) If the EAR shipping tolerance rules were changed, (i) should
BIS continue to exclude certain Export Control Classification Numbers
(ECCNs) from having an allowable shipping tolerance, and (ii) should
the dollar value-based shipping tolerance be set at ten percent to
match the Department of State rules; and
    (3) Whether an automatic calculation of the dollar value-based
shipping tolerance in AES (electronic decrementation) would assist
exporters in maintaining compliance with the allowable shipping dollar
value of the license.
    BIS received 11 comments in response to the NOI. Most were
supportive of automatic decrementation of the license value. One
commenter noted that quantity is not automatically checked against the
licensed amount under the current DDTC system or the BIS proposal, and
that calculation of quantity overages presents a risk of violations.
Two commenters noted that a single percentage for all commodities would
be simpler and easier to calculate. Additional comments were outside
the scope of the inquiry and addressed AES specific issues.
    BIS received one comment in response to the November 29 proposed
rule that related to unit paragraphs. The commenter identified several
unit paragraphs that contained listings for types of items that are not
controlled in that ECCN. This comment and the BIS response was also
discussed above.
    Based on the commenters' support for the automatic decrementation
and the desire for a single, simple shipping tolerance threshold across
the EAR, BIS is undertaking this revision of the EAR. Automatic
decrementation can only be calculated on the monetary value of the
shipment, so to simplify and standardize the shipping tolerances, BIS
is allowing shipping tolerances on value for all items. Additionally,
BIS is no longer allowing any shipping tolerance to the quantity
approved in the license. This change requires BIS to revise how
shipping tolerances are calculated and when they are allowed.
    Commodities on the CCL are currently assigned a unit of quantity in
the ``Unit'' paragraph in the List of Items Controlled section of each
ECCN. These units of quantity are number, dollar value, or area, weight
or other measure. The commodities are licensed in this unit of
quantity, meaning that a license for an item denominated in number
authorizes shipments of the commodity until the number has been
reached. For items licensed in number or area, weight or other measure,
the exporter must estimate the per unit cost and the license contains a
total dollar value authorized. For items denominated in value, the
exporter must provide BIS the number in whatever unit of quantity is
common in that trade and the license contains a quantity authorized.
    Presently, shipping tolerances are available to allow exporters to
legally exceed the quantity or value on the license in certain
circumstances. Items denominated in number are eligible for a shipping
tolerance of up to twenty-five percent of the value authorized on the
license. Items denominated in area, weight or other measure are
eligible for a shipping tolerance of up to twenty-five percent of the
value and up to ten percent on the quantity authorized on the license.
Items denominated in value are not eligible for any shipping tolerance
on the value or the quantity authorized on the license.
    To amend this existing structure, this final rule standardizes the
unit of measure for all items as the number based on the unit of
quantity commonly used in the trade of that good. This means that the
applicant will identify the appropriate unit of quantity on the license
application and the quantity of the commodity to be exported calculated
in that unit of quantity. For the majority of commodities, this unit of
quantity will be the number of individual items, as described in the
ECCN. For example, if an applicant wishes to export integrated circuits
controlled under ECCN 3A001, they will identify the number of
individual integrated circuits they would like BIS to authorize for
export.
    Once the unit of quantity and number of items is established, the
applicant will determine the per unit value of the item and will report
that value to BIS. The applicant will then multiply the per unit value
by the number sought to be exported to arrive at the total value of the
license and report that to BIS in the license application. If the
license is granted, the exporter will be limited to both the number and
the value approved on the license.
    This eliminates any distinction between commodities regarding the
availability or calculation of shipping tolerances. This rule therefore
also makes shipping tolerances available for all items up to ten
percent of the value authorized on the license. Each license authorized
by BIS will have both a number and a value. If the exporter has shipped
the number of items approved on the license, but has not yet shipped
the total value authorized, the license is exhausted and no more items
may be shipped under that license. If, however, the exporter has
shipped the total value of the license, but has not yet shipped the
total number authorized, the exporter may continue to ship against the
license until the total value shipped reaches 110% of the value
authorized on the license, or the exporter reaches the number of items
authorized on the license, whichever occurs first.
    Shipping tolerances on value are allowed to accommodate inflation
of the value of the commodities over the validity period of the
license. BIS has determined that over the four year validity period
that will be applicable to most licenses, a ten percent shipping
tolerance is reasonable to accommodate potential inflation for the
foreseeable future. If a shipping tolerance is not appropriate for a
specific transaction, BIS may stipulate a different shipping tolerance
on the license. It is the responsibility of the exporter to ensure
compliance with all license conditions, including any shipping
tolerance specified on the license.
    By standardizing the unit for all items as the number based on the
unit of quantity commonly used in the trade of that commodity, BIS has
also removed the need to identify the unit in each ECCN. Therefore,
this rule eliminated the ``Unit'' paragraph in the List of Items
Controlled section of each ECCN. This will simplify the CCL and
eliminate a point of confusion for many exporters.
    Additionally, the removal of all ``unit'' paragraphs removes the
need to make the revisions to the ``unit'' paragraphs that were
described in the November 29 proposed rule. Therefore the proposed
changes to ECCNs 2A292, 2B201, 2B206, 2B209, 2B290, 6A102,

6A203, 6A225, 6A226, 6A992, 6A994, 6A995, 6C992, 6C994, 9A106, and
9A120 will not be made, as was discussed earlier in the ``parts'' and
``components'' changes discussion of this final rule.
    BIS recognizes that for items currently denominated in number, this
rule will reduce the applicable shipping tolerance from twenty-five
percent of the total authorized value to ten percent. To avoid
unsettling exporter expectations on the use of existing authorizations
and avoid confusion, the changes in shipping tolerances will only apply
to licenses granted after this rule becomes effective. In addition,
because a purchase order is not needed in order to apply for a license,
applicants that have a desire or need for an additional tolerance once
this rule becomes effective may simply request an additional quantity
in the original license application. Therefore, BIS believes the impact
on applicants will be minimal, but adopting this simplified shipping
tolerance and removal of the ``Units'' paragraphs will make the CCL
clearer. The changes implemented in the final rule will also be an
important step in moving toward decrementing BIS licenses in AES, which
based on the public comments received in response to the NOI, is
something strongly supported by the public.

(6) Clarifications to the April 16 (Initial Implementation) Rule

    BIS is making three clarifications to the April 16 (initial
implementation) rule as a result of questions and comments from the
public that identified unintended or inconsistent policy outcomes after
the publication of the final rule. These changes are in addition to the
conforming changes being made to the April 16, 2013 rule described
above under ``(3) Structural changes to improve the clarity of the
CCL.'' As noted above, the April 16 (initial implementation) rule
revises the CCL by adding a structure and related provisions to control
munitions items that the President has determined no longer warrant
export control on the USML on the CCL, specifically certain aircraft,
gas turbine engines, and related items. The initial implementation rule
was published in conjunction with a Department of State document that
revises the USML so that upon the effective date of both documents
(October 15, 2013), the USML and CCL and corresponding regulatory
structures will be complementary. The Department of Commerce and State
will publish corrections to the April 16 final rules prior to October
15, 2013. The changes described here are minor clarifications to
correct unintended or inconsistent policy outcomes, or to make other
minor clarifications to the April 16 (initial implementation) rule.
    BIS conducted a significant amount of outreach to explain the
initial implementation rule, including providing a number of
opportunities for the public to submit questions to BIS about the
changes that will become effective on October 15, 2013. As BIS has
answered these questions, including conducting outreach to other parts
of the U.S. Government and internally within BIS, BIS determined that
there was a need to provide these clarifications to the initial
implementation rule.
(A) Clarification of de Minimis Exclusion for .y ``600 series'' Items
To Ensure Consistent Treatment When Exported or Reexported as Stand-
Alone Items and When Incorporated
    The initial implementation rule added a new paragraph (a)(6) to
Section 734.4 (De minimis U.S. content). New paragraph (a)(6) excludes
all ``600 series'' items from de minimis eligibility when destined to a
D:5 Country in Supplement No. 1 to part 740. The ``600 series'' .y
items are controlled for AT1, so these items are subject to a license
requirement for the E:1 countries and for China because of the PRC
military end-use control. The E:1 countries and China are also D:5
countries. Therefore, the exclusion from de minimis eligibility for .y
items for the E:1 countries and China is consistent. The ``600 series''
.y items are subject to a license requirement if exported or reexported
to these countries as discrete items and when incorporated with a
foreign made item because .y items are not eligible for de minimis
because of paragraph (a)(6).
    For the other D:5 countries, however, there is an inconsistency,
because ``600 series'' .y items are not subject to a license
requirement when exported or reexported as discrete items. However, if
any .y item is incorporated into a foreign made item, the foreign made
item would become subject to the EAR when reexported or exported from
abroad, because of the paragraph (a)(6) exclusion from de minimis for
all ``600 series'' items for D:5 countries.
    To ensure consistent treatment for .y items, this final rule
revises paragraph (a)(6) to add a heading for paragraph (a)(6) (``600
series'') and add new paragraphs (a)(6)(i) and (a)(6)(ii). Paragraph
(a)(6)(i) specifies there is no de minimis level for foreign-made items
that incorporate U.S.-origin ``600 series'' items enumerated or
otherwise described in paragraphs .a through .x of a ``600 series''
ECCN when destined for a country listed in Country Group D:5.
    To address the inconsistent treatment of the .y items discussed
above, this final rule adds a new paragraph (a)(6)(ii) to address the
exclusion for ``600 series'' .y items. This new paragraph will specify
there is no de minimis level for foreign-made items that incorporate
U.S.-origin ``600 series'' .y items when destined for a country listed
in Country Group E:1 or for the People's Republic of China (PRC). BIS
decided to take this approach to address the inconsistent treatment
because BIS, in consultation with its interagency partners, previously
concluded that D:5 countries other than China and E:1 countries do not
present a high enough diversion risk to warrant this approach for .y
items, which are not as militarily significant as other ``600 series''
items (as noted in June 21, 2012 (transition) proposed rule).
(B) Removal of Sentence No Longer Needed Because of the de Minimis
Changes Included in the Initial Implementation Rule
    In Sec.  740.10 (License Exception Servicing and replacement of
parts and equipment (RPL) in this final rule, BIS is removing the
second sentence of paragraph (b)(2)(ii) because it is not needed in
light of the de minimis changes included in the initial implementation
rule. The second sentence in paragraph (b)(2)(ii) was originally
proposed in the July 15 (framework) rule and was worded in the way it
was because of the 10% de minimis rule that was originally proposed in
that rule. Specifically, the second sentence for the ``600 series'' did
not extend to parts, components, accessories, attachments and
attachments contained in commodities that were made in a foreign
country incorporating authorized U.S.-origin parts, components,
accessories or attachments. However, after subsequent review of the
public comments and further consideration, BIS adopted a simpler de
minimis rule for the ``600 series.'' Because countries listed in D:5
are subject to a 0% de minimis rule for ``600 series'' items, except
for .y items as described above, there is no longer a need for the
second sentence in (b)(2)(ii). Therefore, in this final rule, BIS is
removing the second sentence that was specific to the ``600 series.''
The requirements in (b)(2)(ii) that apply to non-``600 series'' parts,
components, accessories, and attachments will apply to the ``600
series.''

(C) Clarification of What ECCNs Are Considered Controlled for AT-Only,
for Purposes of ``specially designed''
    The April 16 (initial implementation) rule added a new definition
of ``specially designed.'' This final rule adds a sentence to the end
of Note 1 of ``specially designed'' definition to clarify which ECCNs
are controlled for AT-only reasons for purposes of the ``specially
designed'' definition. This sentence lists seventy-three ECCNs, which
are the following ECCNs: 0A999, 1A995, 1A999, 1C990, 1C996, 1C998,
1D993, 1D999, 1E994, 1E998, 2A991, 2A994, 2A999, 2B991, 2B992, 2B993,
2B996, 2B997, 2B998, 2B999, 2D991, 2D992, 2D994, 3A991, 3A992, 3A999,
3B991, 3B992, 3C992, 3D991, 3E991, 4A994, 4D993, 4D994, 4E992, 4E993,
5A991, 5C991, 5D991, 5E991, 5A992, 5D992, 5E992, 6A991, 6A992, 6A993,
6A994, 6A995, 6A996, 6A997, 6A999, 6B995, 6C992, 6C994, 6D992, 6D993,
6E992, 6E993, 7B994, 7D994, 7E994, 8A992, 8D992, 8E992, 9A990, 9A992,
9B990, 9B991, 9D990, 9D991, 9E990, 9E991 and 9E993. ECCNs controlled
for AT-only reasons are ECCNs where the reason for control in the
License Requirements paragraph only includes AT, AT1 or AT2. In
addition to the seventy-three ECCNs that include only an AT reason for
control, there are eleven additional ECCNs on the CCL that are
controlled predominantly for AT reasons on the CCL. These ECCNs
include, in addition to the AT control, an RS control only for Iraq
(0B999, 0D999, 1B999, 1C992, 1C995, 1C997, 1C999); a UN control (0B986
and 9A991); or an RS1 control (6A998.b and 7A994 for the QRS11). These
eleven ECCNs are considered controlled for AT-only ECCNs (excluding for
the RS1 controlled portions of 6A998 and 7A994) for purposes of the
``specially designed'' definition. This is because although they
contain another reason for control, they are controlled predominantly
for AT reasons.
    This final rule adds a sentence to the end of Note 1 to identify
these eleven additional ECCNs that are controlled predominantly for AT
reasons are treated as ECCNs controlled only for AT reasons for
purposes of ``specially designed,'' although two exclusions are made
for the portions of ECCNs 6A998 and 7A994 that are controlled for RS1
reasons. The new sentence this final rule adds to Note 1 specifies
ECCNs: 0B986, 0B999, 0D999, 1B999, 1C992, 1C995, 1C997, 1C999, 6A998
(except for .b), 7A994 (except for the QRS11) and 9A991 are treated as
ECCNs controlled only for AT reasons for purposes of ``specially
designed.''
(D) Clarification on the Applicability of Paragraph (b)(3) and (b)(4)
`releases' From ``specially designed'' for ECCNs Controlled for AT-Only
Reasons
    This final rule also adds to the ``specially designed'' definition
a new Note to paragraphs (b)(3) and (b)(4). This new note clarifies
when paragraph (b)(3) and (b)(4) can be used to `release' ``parts,''
``components,'' ``accessories,'' ``attachments,'' or ``software'' for
ECCNs that are controlled for AT-only reasons. Because the `release'
criteria of paragraphs (b)(3) and (b)(4) use ``controlled for AT-only
reasons,'' the application of these paragraphs for ECCNs controlled for
AT-only reasons that use ``specially designed'' is being clarified. BIS
received two questions from the public on this aspect of the
definition. BIS has provided guidance on how to interpret the
applicability of paragraph (b)(3) and (b)(4) for ECCNs controlled for
AT-only reasons. BIS considered posting guidance on this interpretation
on the BIS Web site, but, for ease of use for the public and to ensure
consistent application of the interpretation, BIS decided it was better
to add this interpretation as a new ``Note to paragraphs (b)(3) and
(b)(4).'' This is not a change in how BIS intended the definition to
apply, but it does make this interpretation explicit for the public.
    The new note being added in this final rule specifies that ECCNs
controlled for AT-only reasons that use ``specially designed'' are
eligible for `release' under paragraphs (b)(3) and (b)(4). However,
this new note clarifies that the criteria for `release' under (b)(3) or
(b)(4) must be met by another ECCN controlled for AT-only reasons or an
EAR99 item in addition to the AT-only ECCN being reviewed for `release'
from ``specially designed.''
    The new note being added also includes three examples to assist
understanding. The first two examples highlight when a ``part'' used in
an ECCN controlled for AT-only reasons is eligible for `release.' The
first example states, if a single gasket is used in ECCN 9A990 tractors
(9A990 includes a control on ``specially designed'' ``parts'') and also
pick-up trucks designated as EAR99 that are in ``production,'' the
single gasket would be `released' from ``specially designed'' on the
basis of paragraph (b)(3). The second example being added to the new
note in this final rule states that if the single gasket is or was used
in 9A990 tractors and also 9A991.b aircraft (another AT-only ECCN) that
are in ``production,'' the gasket would be `released' from ``specially
designed'' on the basis of paragraph (b)(3). The newly added note
includes a third example to highlight when paragraph (b)(3) would not
be available by noting that if the single gasket is or was only used in
the ``production'' of ECCN 9A990 tractors that are in ``production,''
then paragraph (b)(3) would not be available. Lastly, the note being
added clarifies that the same concept applies for paragraph (b)(4).
(E) Clarification of the Definition of ``end item'' That Was Added in
the Initial Implementation Final Rule
    This final rule is revising the definition of ``end item'' that was
added in Sec.  772.1 (Definitions of terms as used in the EAR) to add
the words ``system'' and ``equipment'' before the phrase ``assembled
commodity.'' This change is not substantive and is limited to
clarifying the intended scope of the definition of ``end item'' as it
relates to the terms ``system'' and ``equipment.''
(F) Clarification of the Definition of ``equipment'' That Was Added in
the Initial Implementation Final Rule
    This final rule is revising the definition of ``equipment'' that
was added in Sec.  772.1 to make three clarifications. First, this
final rule clarifies the relationship between ``equipment'' and ``end
items'' and ``systems'' by revising the phrase ``operate together to
perform a function of an end item or system'' to add the phrase ``as,
or for'' after ``of'' so it reads ``operate together to perform a
function of, as, or for an end item or system.'' This change is not
substantive and is limited to clarifying the intended scope of the
definition of ``end item'' as it relates to the terms ``system'' and
``equipment.'' This change specifies a combination of ``parts,''
``components,'' ``accessories,'' ``attachments,'' ``firmware,'' or
``software'' is a system considered ``equipment'' when that combination
of commodities or software: Operate to perform a function ``of'' an end
item or system; operate to perform a function ``as'' an end item or
system; or operate to perform a function ``for'' another end item or
system.
    Second, this final rule is revising the definition of ``equipment''
to delete the word ``specialized'' before the word ``function'' because
the word is not needed and has the potential to create ambiguity
regarding what is ``equipment.'' BIS provides guidance here on the
meaning of function to clarify what is intended with the use of the
word function in the ``equipment'' definition. For purposes of the
``equipment'' definition, function means the control criteria specified
in an ECCN entry, which in certain cases is limited

to the heading, and for those ECCNs that use an ``items'' paragraph,
the function is the control criteria in the respective ``items''
paragraph that enumerates or otherwise describes the ``equipment.'' In
certain cases the specialized function may be described in fairly broad
terms, such as equipment for military end use. In other cases the
control parameters that are included with the term ``equipment'' may be
quite detailed. The ``equipment'' definition includes both of those
types of entries. This guidance on the meaning of function also applies
to the definition of ``system'' discussed below under (G) where the
word ``specialized'' is also being removed for the same reason as in
the ``equipment'' definition.
    Third, this final rule is adding two sentences to the end of the
``equipment'' definition. The originally proposed ``equipment''
definition that was included in the proposed July 15 (framework) rule,
stated that ``equipment'' is a subset of ``end items.'' However, this
sentence was not included in the ``equipment'' definition included in
the initial implementation final rule. The relationship between the
broader term ``end item'' and ``equipment'' was discussed in the
Background section of the initial implementation final rule on pages 78
FR 22692 and 22693. However, after further consideration and to address
questions BIS has received on the relationship between these two terms,
BIS has determined a sentence should be added to the ``equipment''
definition to clarify that ``equipment'' may be a subset of ``end
items,'' when it meets the definition of an ``end item,'' ready for use
with only the addition of ammunition, or fuel or energy source required
to place it in an operating state. When ``equipment'' does not meet
this definition, it is categorized as on the definition with which it
does comply. This same type of concept also applies to the definition
of ``system.''
(G) Clarification of the Definition of ``system'' That Was Added in the
Initial Implementation Final Rule
    This final rule is revising the definition of ``system,'' which was
added to Sec.  772.1 in the initial implementation final rule, to
delete the word ``specialized'' before the word ``function'' because
the word is not needed and has the potential to create ambiguity
regarding what is a ``system.'' This final rule is also removing the
single quotes around function because the word is not defined in the
``system'' definition. Lastly, this final rule is adding a new Note 1
to the definition to reference industrial standards established by
INCOSE and NASA that provide examples for when commodities and software
operate together to perform a function as a system.
(H) Clarification of the Definition of ``build-to-print technology''
That Was Added in the Initial Implementation Final Rule
    This final rule is revising the definition of ``build-to-print
technology,'' which was added to Sec.  772.1 in the initial
implementation final rule, to add the phrase ``any of the following''
in the introductory text of paragraph (1) to clarify the three criteria
in paragraphs (1)(i)-(iii) use the disjunctive ``or.'' The use of
``or'' in paragraph (1) after paragraphs (1)(ii) already states this
requirement, but the addition of the phrase ``any of the following'' in
the introductory text of paragraph (1) will make it easier to
understand. This final rule is also revising the definition to remove
the phrase ``the minimum'' before the term ``necessary'' because it is
not needed and has the potential to cause confusion given necessary is
not a term that is qualified by degree. Technology is either necessary
or not necessary, so there is no need to include the qualifying phrase
``the minimum'' before the term ``technology.''
(I) Initial Implementation Rule Conforming Changes to This Final Rule
    As noted above, in this final rule, BIS is also making conforming
changes to the initial implementation rule, which are described under
(3) Structural changes to improve the clarity of the CCL. These changes
are described under heading (3) above because they are easier to
understand when discussed in the context of those structural changes
being made to the other ECCNs (non-``600 series'' ECCNs) on the CCL.
(J) ECCNs 9B610 and 9B619
    This final rule revises the Related Controls paragraph in ECCN
9B610 and adds new language to the Related Controls paragraph in ECCN
6B619. The revision to 9B610 adds ``equipment'' to the list of
commodities that are controlled for the aircraft specified under
VIII(h)(1). The new language in 9B619 identifies related controls for
engines specified under XIX(f)(1). The intent is to clarify that all
parts, components, accessories, attachments, and equipment (which
includes development, production, operation, maintenance, inspection
and test equipment) are controlled under the USML in either VIII(h)(1)
or XIX(f)(1) for specified aircraft and engines, respectively. ECCNs
9B610 and 9B619 continue to control the described parts, components,
accessories, attachments, and equipment (which includes development,
production, operation, maintenance, inspection and test equipment) not
specified on the USML.
    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 8, 2013, 78, 2013, 78 FR 49107 (August 12, 2013), has continued
the Export Administration Regulations in effect under the International
Emergency Economic Powers Act. 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.

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 final rule has been designated a ``significant
regulatory action,'' although not economically significant, under
section 3(f) of 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 be 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 Office
of Management and Budget (OMB) Control Number. This rule affects the
following approved collection: Simplified Network Application
Processing System (control number 0694-0088), which includes, among
other things, license applications and carries a burden estimate of
43.8 minutes for a manual or electronic submission. Total burden hours
associated with the PRA and OMB control number 0694-0088 are expected
to decrease slightly as a result of this rule because of the removal of
ECCN

8A918 and the clarification of the use of the terms ``parts'' and
``components'' on the CCL. The intent of the clarification of the use
of the terms ``parts'' and ``components'' on the CCL is to maintain the
current scope of controls, although in certain cases this greater
specificity in how these terms are being used may result in a slight
reduction in license applications received for those entries where
``parts'' is not being added and previously the undefined the term
components was used. In the context of these ECCNs, BIS, along with the
other agencies that reviewed this rule, determined the intent is not to
include ``parts.'' However, because previously a small number of
license applications may have been received for commodities that would
meet the ``parts'' definition that was added in the initial
implementation final rule, BIS has determined this may result in a
slight decrease in the number of license applications received.
    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 a regulatory
flexibility analysis 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
economic impact on a substantial number of small entities, the statute
does not require the agency to prepare a regulatory flexibility
analysis. Pursuant to section 605(b), the Chief Counsel for Regulation,
Department of Commerce, submitted a memorandum to the Chief Counsel for
Advocacy, Small Business Administration, certifying that the November
29 proposed rule will not have a significant economic impact on a
substantial number of small entities. A summary of the factual basis
for the certification was provided in the November 29 proposed rule and
is not repeated here. BIS did not receive any comments in response to
the proposed rule regarding the economic impact of this rule or to the
certification made by the Chief Counsel. As a result, a final
regulatory flexibility analysis is not required and one was not
prepared.
    5. Section 3(D) of this rule adds a ``REPORTING REQUIREMENTS''
paragraph to ECCNs 1C001, 4D001, 7D002, 7D003, 7E001 and 7E002. This
addition to the Export Administration Regulations was not included in
the November 29 proposed rule. The Department finds that there is good
cause under 5 U.S.C. 553(b)(B) to waive the provisions of the
Administrative Procedure Act requiring prior notice and the opportunity
for public comment because they are either unnecessary or contrary to
the public interest. This addition alerts exporters that reporting
requirements were imposed on these ECCNs in the April 16 (initial
implementation) rule through the changes to Sec.  743.1 and the
addition of the Wassenaar Arrangement Sensitive and Very Sensitive
Lists as Supplements Nos. 6 and 7 to Part 774. This addition to this
final rule does not create any new reporting requirements. Without the
addition of these Report Requirements paragraphs to the EAR prior to
the October 15, 2013 effective date of the April 16 (initial
implementation) rule, exporters who review these ECCNs will not be
aware of the need to review the revised Sec.  743.1 and the Wassenaar
Arrangement Sensitive and Very Sensitive Lists added as Supplements
Nos. 6 and 7 to Part 774.
    6. The revisions to the Export Administration Regulations described
in Section 6 of this rule were not included in the November 29 proposed
rule. The Department finds that there is good cause under 5 U.S.C.
553(b)(B) to waive the provisions of the Administrative Procedure Act
requiring prior notice and the opportunity for public comment because
they are either unnecessary or contrary to the public interest. The
majority of these revisions are non-substantive, only clarifying the
regulations and thus prior notice and the opportunity for public
comment is unnecessary.
    The revisions described in Section (6)(A) provide a clarification
that ``600 series'' .y items are available for de minimis treatment
when incorporated into foreign origin items destined for any country
for which a license would not be required for direct shipment from the
United States. In a standard de minimis analysis, only the U.S. origin
content that would require a license for direct shipment from the
United States to the destination of the foreign origin item is included
toward the de minimis percentage. As ``600 series'' .y items do not
require a license to D:5 countries, other than the E:1 countries and
the People's Republic of China, it would be contrary to the EAR to
include the .y items in the calculation of foreign origin items
destined to those countries. Additionally, as all foreign origin items
incorporating more than a de minimis level of ``600 series'' parts and
components are, by definition, military items and controlled in 0A919
with an NS1 and RS1 reason for control, requiring worldwide licensing,
foreign manufacturers will have an incentive to avoid sourcing U.S.
origin .y items when the item would not otherwise exceed de minimis.
Notice and public comment procedure for this revision is contrary to
the public interest. If this revision is not effective on October 15,
2013 simultaneous with the April 16 (initial implementation) rule,
foreign origin military items that incorporate ``600 series'' .y items
will be subject to greater controls than the ``600 series'' .y items
would be for direct shipment from the United States. This inconsistent
result was not intended by BIS and would result in discouraging foreign
manufacturers from sourcing U.S. origin ``600 series'' parts and
components without any positive impact on national security. This would
frustrate a major purpose of the Export Control Reform Initiative.
    The revisions described in Section 6(C) correct an oversight in the
term AT-only, as used in the ``specially designed'' definition, to
allow certain ECCNs with additional narrow reasons for control to be
considered within the paragraph (b)(3) release provision. When BIS
published the rule implementing the definition for ``specially
designed,'' BIS did not intend to exclude the eleven ECCNs identified
above which are predominantly controlled only for AT reasons from the
paragraph (b)(3) release in the ``specially designed'' definition.
Excluding these eleven ECCNs from the paragraph (b)(3) release would
cause, for example, parts common to a military aircraft controlled in
ECCN 9A610 and a commercial airliner controlled in ECCN 9A991 to be
``specially designed'' for the military aircraft and therefore
controlled in 9A610.x with an NS1 and RS1 reason for control, requiring
worldwide licensing. In this final rule, BIS amends the language to
correct the inadvertent error. Notice and public comment procedure for
this revision is contrary to the public interest. If this revision is
not effective on October 15, 2013 simultaneous with the April 16
(initial implementation) rule, the paragraph (b)(3) release of the
``specially designed'' definition will not operate as BIS intended and
a significant amount of commercial trade may be subject to ``600
series'' controls.

List of Subjects

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and
patents, Research science and technology.

15 CFR Part 738

    Exports.

15 CFR Parts 740, 748 and 750

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 734, 738, 740, 742, 748, 750, 772, and 774 of
the Export Administration Regulations (15 CFR parts 730-774) are
amended as follows:

PART 734--[AMENDED]

0
1. The authority citation for 15 CFR part 734 continues to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; 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 November 9, 2011, 76 FR 70319 (November 10, 2011); ;
E.O. 13637, 78 FR 16129 (March 8, 2013); Notice of August 8, 2013,
78, 2013, 78 FR 49107 (August 12, 2013).

0
2. Section 734.3 is amended:
0
a. By revising the introductory text of paragraph (b)(1)(i); and
0
b. By adding paragraph (b)(1)(vi) to read as follows:

Sec.  734.3  Items subject to the EAR.

* * * * *
    (b) * * *
    (1) * * *
    (i) Department of State. The International Traffic in Arms
Regulations (22 CFR parts 120-130) administered by the Directorate of
Defense Trade Controls relate to defense articles and defense services
on the U.S. Munitions List (22 CFR part 121). Section 38 of the Arms
Export Control Act (22 U.S.C. 2778). (Also see paragraph (b)(1)(vi) of
this section).
* * * * *
    (vi) Department of Defense (DoD) and Department of State Foreign
Military Sales (FMS) Program. Items that are subject to the EAR that
are sold, leased or loaned by the Department of Defense to a foreign
country or international organization under the FMS Program of the Arms
Export Control Act pursuant to a Letter of Offer and Acceptance (LOA)
authorizing such transfers are not ``subject to the EAR,'' but rather,
are subject to the authority of the Arms Export Control Act.
* * * * *

0
3. Section 734.4 is amended:
0
a. By revising the Note to paragraph (a)(3); and
0
b. By revising paragraph (a)(6) as added April 16, 2013, at 78 FR
22707, effective October 15, 2013 to read as follows:

Sec.  734.4  De minimis U.S. content.

* * * * *

    Note to Paragraph (a)(3): QRS11 Micromachined Angular Rate
Sensors are ``subject to the ITAR,'' (see 22 CFR parts 120 through
130) except when the QRS11-00100-100/101 version of the sensor is
integrated into and included as an integral part of a commercial
primary or standby instrument system of the type described in ECCN
7A994, or aircraft of the type described in ECCN 9A991 that
incorporates a commercial primary or standby instrument that has
such a sensor integrated, or is exported solely for integration into
such systems; or when the QRS11-00050-443/569 is integrated into a
commercial automatic flight control system of the type described in
ECCN 7A994, or aircraft of the type described in ECCN 9A991 that
incorporates an automatic flight control system that has such a
sensor integrated, or is exported solely for integration into such a
system.

* * * * *
    (6) ``600 series.''
    (i) There is no de minimis level for foreign-made items that
incorporate U.S.-origin ``600 series'' items enumerated or otherwise
described in paragraphs .a through .x of a ``600 series'' ECCN when
destined for a country listed in Country Group D:5 of Supplement No. 1
to part 740 of the EAR.
    (ii) There is no de minimis level for foreign-made items that
incorporate U.S.-origin ``600 series'' .y items when destined for a
country listed in Country Group E:1 of Supplement No. 1 to part 740 of
the EAR or for the People's Republic of China (PRC).

0
4. Section 734.6 is amended by revising paragraph (a) to read as
follows:

Sec.  734.6  Assistance available from BIS for determining licensing
and other requirements.

    (a) If you are not sure whether a commodity, software, technology,
or activity ``subject to the EAR'' is subject to licensing or other
requirements under the EAR, you may ask BIS for an advisory opinion or
a commodity classification determination. In order to determine whether
an item is ``subject to the ITAR,'' you should review the ITAR's United
States Munitions List (see 22 CFR 120.3, 120.6 and 121.1). You may also
submit a request to the Department of State, Directorate of Defense
Trade Controls, for a formal jurisdictional determination regarding the
commodity, software, technology, or activity at issue; or in ITAR
terms, the defense article, technical data or defense service at issue
(see 22 CFR 120.4).
* * * * *

PART 738--[AMENDED]

0
5. The authority citation for 15 CFR part 738 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 8, 2013, 78, 2013, 78 FR 49107 (August 12,
2013).

0
6. Section 738.2 is amended by:
0
(a) Revising the introductory text to paragraph (d)(2);
0
(b) Redesignating paragraphs (d)(2)(i) through (iii) as (d)(2)(ii)
through (iv);
0
(c) Adding a new paragraph (d)(2)(i);
0
(d) Removing newly redesignated paragraph (d)(2)(iv)(A);
0
(e) Further redesignating newly redesignated paragraphs (d)(2)(iv)(B)
through (D) as (d)(2)(iv)(A) through (C); and
0
(d) Revising newly redesignated paragraph (d)(2)(iv)(C) to read as
follows:

Sec.  738.2  Commerce Control List (CCL) structure.

* * * * *
    (d) * * *
    (2) Reading an ECCN. An ECCN is made up of four sections, the
``Heading,'' ``License Requirements,'' ``License Exceptions,'' and
``List of Items Controlled'' sections. A brief description of each
section and its use follows:
    (i) Heading. A description of the items controlled is provided next
to each ECCN. In certain ECCNs, the description is a summary and will
direct you to ``see List of Items Controlled'' for a complete list of
items classified under those respective ECCNs. The ``Items'' paragraph
in the List of Items Controlled section will describe all of the items
that the ECCN controls for the portions of

the heading that precede the ``see List of Items Controlled'' phrase.
Portions of the heading that follow the phrase are complete
descriptions of the items controlled by that portion of the heading. If
``see List of Items Controlled'' appears at the end of the heading, the
``Items'' paragraph in the List of Items Controlled section is the
exclusive, complete list of the items the ECCN controls.
* * * * *
    (iii) * * *
    (C) Items. This paragraph describes the relationship between the
``items'' paragraph and ECCN headings and will assist your
understanding as you classify items on the CCL. When the heading
contains the phrase ``see List of Items Controlled,'' the portion of
the heading preceding that phrase is only a summary of the items
controlled by the ECCN and the ``items'' paragraph contains an
exclusive list of items described in the heading. Paragraphs
(d)(2)(iv)(C)(1), (2) and (3) of this section provide examples of the
three different uses of the phrase ``(see List of Items Controlled)''
in ECCN headings. Each heading on the CCL uses one of these three
structures. Understanding the relationship between the heading and the
``items'' paragraph is important when classifying items that are
``subject to the EAR'' on the CCL.
    (1) ``(See List of Items Controlled)'' is at the end of the ECCN
heading. An example of an ECCN where all of the heading text precedes
the phrase ``(see List of Items Controlled)'' is ECCN 8A002 Marine
systems, equipment, ``parts'' and ``components,'' as follows (see List
of Items Controlled). ECCNs 1A001, 3A001, 6A001, 7A004 and 9A012 are
other examples where all of the heading text precedes the phrase ``(see
List of Items Controlled).'' In these types of headings, the items
paragraphs must be reviewed to determine whether your item is contained
within the heading and classified under that ECCN.
    (2) ``(See List of Items Controlled)'' is in the middle of the ECCN
heading. If the phrase ``(see List of Items Controlled)'' appears in
the middle of the ECCN heading, then all portions of the heading that
follow the phrase ``(see List of Items Controlled)'' will list items
controlled in addition to the list in the ``items'' paragraph. An
example of such a heading is ECCN 2B992 Non-``numerically controlled''
machine tools for generating optical quality surfaces, (see List of
Items Controlled) and ``specially designed'' ``parts'' and
``components'' therefor. Under the ECCN 2B992 example, the ``items''
paragraph must be reviewed to determine whether your item is contained
within the first part of the heading (``non-`numerically controlled'
machine tools for generating optical quality surfaces'') and classified
under 2B992. The second part of the ECCN 2B999 heading (``and
`specially designed' `parts' and `components' therefor'') contains the
exclusive list described in the heading. ECCNs 1A006, 3B992, 4A001,
6A006 and 7A001 are other examples where the phrase ``(see List of
Items Controlled)'' appears in the middle of the ECCN heading.
    (3) ECCNs that do not use the phrase ``(see List of Items
controlled).'' When all items classified in the ECCN are listed in the
heading, a sentence is generally included in the ``items'' paragraph to
direct you to the heading. An example of such a heading is ECCN 4E980
``Technology'' for the ``development,'' ``production'' or ``use'' of
commodities controlled by 4A980. ECCNs 0A982, 3A292, 5D101, 8D001 and
9A002 are other examples where the heading is the exclusive description
of the items classified under those respective ECCNs.
* * * * *

0
7. Section 738.4 is amended by revising paragraph (b)(2) to read as
follows:

Sec.  738.4  Determining whether a license is required.

* * * * *
    (b) * * *
    (2) Sample CCL entry.

2A000 Entry heading.

License Requirements

Reason for Control: NS, NP, AT

                Control(s)                          Country chart

NS applies to entire entry................  NS Column 2
NP applies to 2A000.b.....................  NP Column 1
AT applies to entire entry................  AT Column 1

License Exceptions

LVS: $5,000
GBS: Yes
CIV: N/A

List of Items Controlled

Related Definitions: N/A
Related Controls: N/A
Items:

    a. Having x.
    b. Having z.
* * * * *

PART 740--[AMENDED]

0
8. 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 8, 2013, 78, 2013, 78 FR 49107 (August 12, 2013).

0
9. Section 740.6 is amended by revising paragraph (a)(1)(iii) to read
as follows:

Sec.  740.6  Technology and software under restriction (TSR).

    (a) * * *
    (1) * * *
    (iii) If the direct product of the technology is a complete plant
or any major components of a plant, export to Country Groups D:1 or E:1
of the direct product of the plant or major components thereof, if such
foreign produced direct product is subject to national security
controls as identified on the CCL or is ``subject to the ITAR'' (see 22
CFR parts 120 through 130).
* * * * *

0
10. Section 740.10 is amended by removing the second sentence to
paragraph (a)(2)(ii) as revised April 16, 2013, at 78 FR 22712,
effective October 15, 2013.

PART 742--[AMENDED]

0
11. 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 November 1, 2012, 77 FR 66513 (November 5, 2012); Notice
of August 8, 2013, 78, 2013, 78 FR 49107 (August 12, 2013).

0
12. Section 742.2 is amended by revising paragraph (e) to read as
follows:

Sec.  742.2  Proliferation of chemical and biological weapons.

* * * * *
    (e) License application requirements and instructions. Unique
application and submission requirements for chemicals, medicinals, and
pharmaceuticals are described in paragraph (a) of Supplement No. 2 to
part 748 of the EAR.

PART 748--[AMENDED]

0
13. 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 15, 2012, 77 FR 49699 (August 16,
2012).

0
14. Supplement No. 1 to Part 748 is amended by revising paragraphs e
and f of Block 22 to read as follows:

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

* * * * *
    Block 22: * * *
    (e) Quantity. Identify the quantity to be exported or reexported,
in terms of the unit commonly used in the trade.
    (f) Units. The unit of quantity used in Block 22(e) must be entered
on all license applications submitted to BIS. This Block may be left
blank on license applications for technology only.
* * * * *

PART 750--[AMENDED]

0
15. The authority citation for 15 CFR part 750 continues to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR
26459, May 16, 2003; E.O. 13637, 78 FR 16129 (March 8, 2013); Notice
of August 8, 2013, 78, 2013, 78 FR 49107 (August 12, 2013).

0
16. Section 750.7 is amended by revising paragraphs (c)(1)(ii),
(c)(1)(viii) and (f) to read as follows:

Sec.  750.7  Issuance of licenses.

* * * * *
    (c) * * *
    (1) * * *
    (ii) Increase in price if permitted under the shipping tolerances
in Sec.  750.11 of this part;
* * * * *
    (viii) Change in ECCN, where necessary only for the purpose of
conforming to an official revision in the CCL; or wording of the item
description. This does not cover an actual change in the item to be
shipped, or an increase in the total price or quantity on the license.
* * * * *
    (f) Quantity of commodities authorized. Unlike software and
technology, commodities will be approved with a quantity and dollar
value limit. Any license resulting from a license application to export
or reexport commodities will be licensed in terms of the specified unit
of quantity commonly used in trade. A total dollar value for the
commodity will be authorized based on the per unit price of the
commodity. Subject to the shipping tolerances authorized in Sec.
750.11 of this part, the authorization is limited by both the quantity
and value listed on the license.
* * * * *

0
17. Section 750.11 is revised to read as follows:

Sec.  750.11  Shipping tolerances.

    Under some circumstances, you may use a license issued for the
export of items from the United States to export more than the value
shown on that license. This additional amount is called a shipping
tolerance. This section tells you, as the licensee, when you may take
advantage of a shipping tolerance and the amount of shipping tolerance
you are permitted to use.
    (a) If you have already shipped the full quantity of items approved
on your license, you may not use this shipping tolerance provision. No
further shipment may be made under the license.
    (b) If you have not shipped the full quantity of items approved on
the license, the value of all of your shipments under one license, up
to the full quantity approved on the license, may exceed the total
dollar value stated on that license by up to 10%, unless;
    (1) Your license stipulates a specific shipping tolerance; or
    (2) Your item is controlled for short supply reasons and a
different tolerance has been established. (See part 754 of the EAR).

PART 772--[AMENDED]

0
18. 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
8, 2013, 78, 2013, 78 FR 49107 (August 12, 2013).

0
19. Section 772.1 is amended:
0
a. By revising the definition of ``build-to-print technology'' as added
April 16, 2013, at 78 FR 22727, effective October 15, 2013;
0
b. By revising the definition of ``end item'' as added April 16, 2013,
at 78 FR 22728, effective October 15, 2013;
0
c. By revising the definition of ``equipment'' as added April 16, 2013,
at 78 FR 22728, effective October 15, 2013;
0
d. By adding a definition for the term ``subject to the ITAR;''
0
e. By amending the definition of ``specially designed'' as revised
April 16, 2013, at 78 FR 22728-22729, effective October 15, 2013 to add
one sentence at the end of Note 1 and to add a new Note to paragraphs
(b)(3) and (b)(4) after Note 3 to paragraph (b)(3); and
0
f. By revising the definition of ``system'' as added April 16, 2013, at
78 FR 22729, effective October 15, 2013 and to add a new Note, to read
as follows:

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

* * * * *
    Build-to-Print technology. (1) This is ``production''
``technology'' that is sufficient for an inherently capable end user to
produce or repair a commodity from engineering drawings without any of
the following:
    (i) Revealing ``development'' ``technology,'' such as design
methodology, engineering analysis, detailed process or manufacturing
know-how;
    (ii) Revealing the production engineering or process improvement
aspect of the ``technology;'' or
    (iii) Requiring assistance from the provider of the technology to
produce or repair the commodity.
    (2) Acceptance, test, or inspection criteria pertaining to the
commodity at issue is included within the scope of ``build-to-print
technology'' only if it is necessary to verify that the commodity is
acceptable.
* * * * *
    End item. This is a system, equipment or assembled commodity ready
for its intended use. Only ammunition, or fuel or other energy source
is required to place it in an operating state. Examples of end items
include ships, aircraft, computers, firearms, and milling machines.
* * * * *
    Equipment. This is a combination of parts, components, accessories,
attachments, firmware, or software that operate together to perform a
function of, as, or for an end item or system. Equipment may be a
subset of ``end items'' based on the characteristics of the equipment.
Equipment that meets the definition of an end-item is an end-item.
Equipment that does not meet the definition of an end-item is a part,
component, accessory, attachment, firmware, or software.
* * * * *
    Subject to the ITAR. A term used in the EAR to describe those
commodities, software, technology (e.g., technical data) and defense
services over which the U.S. Department of State, Directorate of
Defense Trade Controls (DDTC) exercises regulatory jurisdiction under
the International Traffic in Arms Regulations (ITAR) (see 22 CFR parts
120 through 130).
* * * * *

    Specially designed. * * *
* * * * *
    (a) * * *
* * * * *

    Note 1: * * * For purposes of ``specially designed,'' ECCNs
0B986, 0B999, 0D999, 1B999, 1C992, 1C995, 1C997, 1C999, 6A998
(except for .b), 7A994 (except for the QRS11) and 9A991 are treated
as ECCNs controlled exclusively for AT reasons.

* * * * *

    Note to paragraphs (b)(3) and (b)(4): ECCNs controlled for AT-
only reasons that use ``specially designed'' are eligible for
paragraphs (b)(3) and (b)(4). However, the criteria for release
under (b)(3) or (b)(4) must be met by another ECCN controlled for
AT-only reasons or an EAR99 item in addition to the AT-only ECCN
being reviewed for release from ``specially designed.'' For example,
if a single gasket is used in ECCN 9A990 tractors (9A990 includes a
control on ``specially designed'' ``parts'') and also pick-up trucks
designated as EAR99 that are in ``production'', the single gasket
would be released from ``specially designed'' on the basis of
paragraph (b)(3). Or if the single gasket is or was used in 9A990
tractors and also 9A991.b aircraft (another AT-only controlled
ECCN), that are in ``production,'' the gasket would be released from
``specially designed'' on the basis of paragraph (b)(3).
Alternatively, if the single gasket is or was only used in ECCN
9A990 tractors that are in ``production,'' then paragraph (b)(3)
would not be available. This same concept applies for paragraph
(b)(4).

* * * * *
    System. This is any combination of ``end items,'' ``equipment,''
``parts,'' ``components,'' ``accessories,'' ``attachments,'' firmware,
or ``software'' that operate together to perform a function.

    Note: The industrial standards established by INCOSE and NASA
provide examples for when commodities and software operate together
to perform a function as a system. References to these standards are
included in this note to provide additional examples for when
commodities or software operate together to perform a function as a
system. See the INCOSE standards for what constitutes a system at
(http://g2sebok.incose.org/app/mss/asset.cfm?ID=INCOSE%20G2SEBOK%202.00&ST=F), and in the (INCOSE SE
Handbook v3.1 2007; ISO/IEC 15288:2008). Also see the NASA standards
for examples of what constitutes a system in the (NASA SE Handbook
SP-2007-6105 Rev 1).

PART 774--[AMENDED]

0
20. 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 8, 2013, 78, 2013, 78 FR 49107 (August 12,
2013).

0
21. Revise Sec.  774.1 to read as follows:

Sec.  774.1  Introduction.

    (a) Scope of the control list. In this part, references to the EAR
are references to 15 CFR chapter VII, subchapter C. The Bureau of
Industry and Security (BIS) maintains the Commerce Control List (CCL)
that includes ``items''--i.e., ``commodities,'' ``software,'' and
``technology''--subject to the authority of BIS. The CCL does not
include items exclusively controlled for export by another department
or agency of the U.S. Government, though in instances where other
agencies administer controls over related items, entries in the CCL may
contain a reference to such controls. In addition, those items
``subject to the EAR'' but not identified on the CCL are identified by
the designator ``EAR99.'' See Sec.  734.2(a) of the EAR for items that
are ``subject to the EAR.'' EAR Part 738 contains an explanation of the
organization of the CCL and its relationship to the Country Chart.
    (b) ECCN cross-references for items subject to exclusive
jurisdiction of another agency. (1) Prior to October 15, 2013, the CCL
contained certain ECCNs that were only included as cross references to
items subject to the export control regulations administered by the
Nuclear Regulatory Commission.
    (2) ECCNs formerly listed on the CCL that, as of October 15, 2013
were subject to the export licensing authority of the Nuclear
Regulatory Commission at 10 CFR part 110 are: 0A001, 0B001, 0B002,
0B003, 0B004, 0B005, 0B006, 0C001, 0C002, 0C004, 0C005, 0C006, 0C201
and 1C012.
    (3) Multilateral export control regime references are provided, as
an additional point of historical reference.

    Note to paragraph (b): As of October 15, 2013 ECCN 0D001 is
subject to the export licensing authority of the Nuclear Regulatory
Commission (see 10 CFR part 110), and ECCN 0E001 is subject to the
export licensing authority of the Department of Energy (see 10 CFR
part 810), but certain portions of these entries are also ``subject
to the ITAR'' (see 22 CFR parts 120 through 130). These ECCNs are
retained on the CCL as a cross reference.

    (c) Where to find the CCL? The CCL is contained in Supplement No. 1
to this part, and Supplement No. 2 to this part contains the General
Technology and Software Notes relevant to entries contained in the CCL.
    (d) Conventions related to the use of quotation marks on the CCL.
The use of double quotation marks on the CCL is intended to be an aid
to alert you to terms used on the CCL that are defined in part 772
(Definitions of Terms), or for purposes of ECCNs, where a definition is
provided in the ``related definitions'' paragraph in the License
Requirements section of ECCNs or sometimes in Notes and Technical Notes
for particular ECCNs and that definition is specific to that particular
ECCN. In this sense the quotes are helpful both in the use of single
and double quotes, but a good compliance practice is to familiarize
yourself with the defined terms in part 772, and when reviewing a
control parameter on the CCL that uses a term that is not in quotes to
be aware it may be defined in part 772. It is also a useful compliance
practice to review the ``Related Definitions'' paragraph and Notes and
Technical Notes to determine if the term is defined for purposes of a
particular ECCN.
    (1) Use of double quotes. If a term on the CCL uses double quotes
it means there is a defined term in part 772. However, the absence of
double quotes does not mean that a term used on the CCL is not defined
in part 772. Because the CCL includes many terms that are defined in
part 772, BIS's practice is to use double quotes for certain key terms
and to use double quotes when needed for consistency with multilateral
export control regime based entries, such as many derived from control
lists, in particular for the Wassenaar Arrangement that also uses the
double quotes convention. However, because of the large number of
defined terms used on the CCL and a desire to avoid hindering
readability by placing quotes around too many words used in particular
ECCNs, BIS's practice is to not add double quotes around certain terms,
such as items and commodities. This convention also applies to the use
of double quotes within the Definition of Terms section under part 772.
    (2) Use of single quotes. The CCL also includes a convention
regarding the use of single quotes. Single quotes on the CCL identify a
term as a defined term in the context of a particular ECCN. This
convention also applies to the use of single quotes within the
Definition of Terms section under part 772.

Supplement No. 1 to Part 774--[Amended]

0
22. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by removing the following Export Control Classification Numbers
(ECCNs): 0A001, 0B001, 0B002, 0B003, 0B004, 0B005, 0B006, 0C001, 0C002,
0C004, 0C005, 0C006, 0C201 and 1C012.

0
23. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by adding the new section heading ``Special Conditions for STA'' above
the STA paragraph of the following Export Control Classification
Numbers (ECCNs): 1A002, 1C001, 1C007, 1C010, 1D002, 1E001, 1E002,
2D001, 2E001, 2E002, 3A002, 3D001, 3E001, 4A001, 4D001, 4E001, 5A001,
5B001, 5D001, 5E001, 6A001, 6A002, 6A003, 6A004, 6A006, 6A008, 6B008,
6D001, 6D003, 6E001, 6E002, 7D003, 7D004, 7E001, 7E002, 7E004, 8A001,
8A002, 8D001, 8D002, 8E001, 8E002, 9B001, 9D001, 9D002, 9D004, 9E001,
9E002, and 9E003.

0
24. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by adding the new section heading ``Special Conditions for STA'' above
the STA paragraph of the following Export Control Classification
Numbers (ECCNs): 9A610, 9A619, 9B610, 9B619, 9C610, 9C619, 9D610,
9D619, 9E610 and 9E619, as added April 16, 2013, at 78 FR 22730-22734,
effective October 15, 2013.

0
25. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by adding the new section heading ``Special Conditions for STA'' above
the STA paragraph of the following Export Control Classification
Numbers (ECCNs): 0A606, 0A617, 0B606, 0B617, 0C606, 0C617, 0D606,
0D617, 0D617, 0E606, 0E617, 8A609, 8A620, 8B609, 8B620, 8C609, 8D609,
8D620, 8E609, and 8E620, as added July 8, 2013, at 78 FR 40912-40918,
effective January 6, 2014;

0
26. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by removing the section headings ``License Exceptions'' from Export
Control Classification Numbers (ECCNs) wherever they appear, and adding
in place of those headings ``List Based License Exceptions (See Part
740 for a description of all license exceptions).''

0
27. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by removing the section headings ``License Exceptions'' from Export
Control Classification Numbers (ECCNs): 9A610, 9A619, 9B610, 9B619,
9C610, 9C619, 9D610, 9D619, 9E610, and 9E619, as added April 16, 2013,
at 78 FR 22730-22734, effective October 15, 2013, and adding in place
of those headings ``List Based License Exceptions (See Part 740 for a
description of all license exceptions).''

0
28. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by removing the section headings ``License Exceptions'' from Export
Control Classification Numbers (ECCNs): 0A606, 0A617, 0B606, 0B617,
0C606, 0C617, 0D606, 0D617, 0E606, 0E617, 8A609, 8A620, 8B609, 8B620,
8C609, 8D609, 8D620, 8E609, and 8E620, as added July 8, 2013, at 78 FR
40912-40918, effective January 6, 2014, and adding in place of those
headings ``List Based License Exceptions (See Part 740 for a
description of all license exceptions).''

0
29. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by removing the ``Country Chart'' table heading in the License
Requirements section in each Export Control Classification Number
(ECCN) where such paragraph appears and adding in its place the heading
``Country Chart (See Supp. No. 1 to part 738).''

0
30. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by removing the ``Country Chart'' table heading in the License
Requirements section from Export Control Classification Numbers
(ECCNs): 9A610, 9A619, 9B610, 9B619, 9C610, 9C619, 9D610, 9D619, 9E610,
and 9E619, as added April 16, 2013, at 78 FR 22730-22734, effective
October 15, 2013, and adding in its place the heading ``Country Chart
(See Supp. No. 1 to part 738).''

0
31. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by removing the ``Country Chart'' table heading in the License
Requirements section from Export Control Classification Numbers
(ECCNs): 0A606, 0A617, 0B606, 0B617, 0C606, 0C617, 0D606, 0D617, 0D617,
0E606, 0E617, 8A609, 8A620, 8B609, 8B620, 8C609, 8D609, 8D620, 8E609,
and 8E620, as added July 8, 2013, at 78 FR 40912-40918, effective
January 6, 2014, and adding in its place the heading ``Country Chart
(See Supp. No. 1 to part 738).''

0
32. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by adding quotes around the term specially designed wherever it
appears.

0
33. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by adding quotes around the term accessories wherever it appears.

0
34. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by adding quotes around the term attachments wherever it appears.

0
35. Supplement No. 1 to part 774 (the Commerce Control List) is
amended:
0
a. By removing the ``Unit'' paragraph from the List of Items Controlled
section in each Export Control Classification Number (ECCN) where such
paragraph appears;
0
b. By removing the ``Unit'' paragraph from the List of Items Controlled
section in Export Control Classification Numbers (ECCNs): 9A610, 9A619,
9B610, 9B619, 9C610, 9C619, 9D610, 9D619, 9E610, and 9E619, as added
April 16, 2013, at 78 FR 22730-22734, effective October 15, 2013; and
0
c. By removing the ``Unit'' paragraph from the List of Items Controlled
section in Export Control Classification Numbers (ECCNs): 0A606, 0A617,
0B606, 0B617, 0C606, 0C617, 0D606, 0D617, 0E606, 0E617, 8A609, 8A620,
8B609, 8B620, 8C609, 8D609, 8D620, 8E609, and 8E620, as added July 8,
2013, at 78 FR 40912-40918, effective January 6, 2014.

0
36. Supplement No. 1 to part 774 (the Commerce Control List) is
amended:
0
a. By removing the ``License Requirements Note'' paragraph in the
License Requirements section in the following Export Control
Classification Number (ECCNs): 1E001;
0
b. By removing the ``License Requirement Notes'' paragraphs in the
License Requirements section in the following Export Control
Classification Numbers (ECCNs): 1A002, 1C007, 1C010, 1D002, 2B003,
2D001, 2E001, 2E002, 3A002, 3B001, 3D001, 4A001, 4E001, 5A001, 5B001,
5D001, 5E001, 6A001, 6A002, 6A004, 6A006, 6A008, 6B008, 6D001, 6D003,
6E001, 6E002, 8A001, 8A002, 8D001, 8D002, 8E001, 8E002, 9B001, 9D001,
9D002, 9E001, 9E002 and 9E003; and
0
c. By removing the ``License Requirement Note'' paragraphs in the
License Requirements section in the following Export Control
Classification Numbers (ECCNs): 1E002 and 3E001.

0
37. Supplement No. 1 to part 774 (the Commerce Control List) is amended
by adding the new section ``REPORTING REQUIREMENTS See Sec.  743.1 of
the EAR for reporting requirements for exports under License
Exceptions, Special Comprehensive Licenses, and Validated End-User
authorizations'' after the License Requirements section in the
following Export Control Classification Numbers (ECCNs): 1A002, 1C001,
1C007, 1C010, 1D002, 1E001, 1E002, 2B003, 2D001, 2E001, 2E002, 3A002,
3D001, 3E001, 4A001, 4D001, 4E001, 5A001, 5B001, 5D001, 5E001, 6A001,
6A002, 6A004, 6A006, 6A008, 6B008, 6D001, 6D003, 6E001, 6E002, 7D002,
7D003, 7E001, 7E002, 8A001, 8A002, 8D001, 8D002, 8E001, 8E002, 9B001,
9D001, 9D002, 9E001, 9E002 and 9E003.

0
38. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A002
is amended by revising the heading to read as follows:

0A002 Power generating or propulsion equipment ``specially
designed'' for use with space, marine or mobile ``nuclear
reactors''. (These items are ``subject to the ITAR.'' See 22 CFR
parts 120 through 130.)
* * * * *

0
39. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A018
is amended by revising the heading to read as follows:

0A018 Items on the Wassenaar Munitions List (see List of Items
Controlled).
* * * * *

0
40. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A979
is amended by revising the heading to read as follows:

0A979 Police helmets and shields; and ``specially designed''
``components,'' n.e.s.
* * * * *

0
41. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A981
is amended by revising the heading to read as follows:

0A981 Equipment designed for the execution of human beings as
follows (see List of Items Controlled).
* * * * *

0
42. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A982
is amended by revising the heading to read as follows:

0A982 Law enforcement restraint devices, including leg irons,
shackles, and handcuffs; straight jackets; stun cuffs; shock belts;
shock sleeves; multipoint restraint devices such as restraint
chairs; and ``specially designed'' ``parts,'' ``components'' and
``accessories,'' n.e.s.
* * * * *

0
43. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A983
is amended by revising the heading to read as follows:

0A983 ``Specially designed'' implements of torture, including
thumbscrews, thumbcuffs, fingercuffs, spiked batons, and ``specially
designed'' ``parts,'' ``components'' and ``accessories,'' n.e.s.
* * * * *

0
44. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A984
is amended:
0
a. By revising the first ``CC'' paragraph in the Control(s) paragraph
of the License Requirements section; and
0
b. By revising the ``Related Controls'' paragraph in the List of Items
Controlled section to read as follows:

0A984 Shotguns with barrel length 18 inches (45.72 cm) or over;
receivers; barrels of 18 inches (45.72 cm) or longer but not longer
than 24 inches (60.96 cm); complete trigger mechanisms; magazines
and magazine extension tubes; complete breech mechanisms; buckshot
shotgun shells; except equipment used exclusively to treat or
tranquilize animals, and except arms designed solely for signal,
flare, or saluting use.

License Requirements

Reason for Control: * * *

                Control(s)                          Country chart

                                * * * * *
CC applies to shotguns with a barrel        CC Column 1
 length greater than or equal to 18 in.
 (45.72 cm), but less than 24 in. (60.96
 cm), shotgun ``components'' controlled by
 this entry, and buckshot shotgun shells
 controlled by this entry, regardless of
 end-user.

                                * * * * *

* * * * *

List of Items Controlled

* * * * *
Related Controls: This entry does not control shotguns with a barrel
length of less than 18 inches (45.72 cm). These items are ``subject
to the ITAR'' (see 22 CFR parts 120 through 130).
* * * * *

0
45. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A985
is amended by revising the heading to read as follows:

0A985 Discharge type arms and devices to administer electric shock,
for example, stun guns, shock batons, shock shields, electric cattle
prods, immobilization guns and projectiles; except equipment used
exclusively to treat or tranquilize animals, and except arms
designed solely for signal, flare, or saluting use; and ``specially
designed'' ``parts'' and ``components,'' n.e.s.
* * * * *

0
46. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A986
is amended by revising the heading to read as follows:

0A986 Shotgun shells, except buckshot shotgun shells, ``specially
designed'' ``parts'' and ``components.''
* * * * *

0
47. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0A987
is amended by revising the heading to read as follows:

0A987 Optical sighting devices for firearms (including shotguns
controlled by 0A984); and ``components'' as follows (see List of
Items Controlled).
* * * * *

0
48. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 0--Nuclear Materials, Facilities & Equipment (and
Miscellaneous Items), Export Control Classification Number (ECCN) 0D001
is amended:
0
a. By revising the heading; and
0
b. By revising the second Control(s) paragraph in the License
Requirements section to read as follows:

0D001 ``Software'' ``specially designed'' or modified for the
``development,'' ``production'' or ``use'' of commodities described
in 0A001, 0A002, 0B (except 0B986 and 0B999), or 0C.

License Requirements

Reason for Control:
Control(s)
* * * * *
    ``Software'' for items described in 0A002 is ``subject to the
ITAR'' (see 22 CFR parts 120 through 130).
* * * * *

0
49. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A001 is amended:
0
a. By revising the heading; and
0
b. By revising the ``Related Controls'' paragraph (1) in the List of
Items Controlled section to read as follows:

1A001 ``Parts'' and ``components'' made from fluorinated compounds,
as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *

Related Controls: (1) Items specially designed or modified for
missiles or for items on the U.S. Munitions List are ``subject to
the ITAR'' (see 22 CFR parts 120 through 130, including USML
Category XXI).
* * * * *

0
50. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A002 is amended by revising the ``Related Controls'' paragraph
(3) in the List of Items Controlled section to read as follows:

1A002 ``Composite'' structures or laminates, having any of the
following (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: * * * (3) ``Composite'' structures ``specially
designed'' for missile applications (including ``specially
designed'' subsystems, ``parts,'' and ``components'') are controlled
by ECCN 9A110.
* * * * *

0
51. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A004 is amended:
0
a. By revising the heading;
0
b. By revising ``Related Controls'' paragraph (4) in the List of Items
Controlled section;
0
c. By revising the introductory text of ``items'' paragraphs a and c in
the List of Items Controlled section; and
0
d. By revising Technical Notes ``1'' at the end of the List of Items
Controlled section to read as follows:

1A004 Protective and detection equipment and ``components,'' not
``specially designed'' for military use, as follows (see List of
Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: * * * (4) Chemical and biological protective and
detection equipment specifically designed, developed, modified,
configured, or adapted for military applications is ``subject to the
ITAR'' (see 22 CFR parts 120 through 130, including USML Category
XIV(f)), as is commercial equipment that incorporates ``parts'' or
``components'' controlled under that category except for domestic
preparedness devices for individual protection that integrate
``components'' and ``parts'' identified in USML Category XIV(f)(4)
when such ``parts'' or ``components'' are: (i) Integral to the
device; (ii) inseparable from the device; and (iii) incapable of
replacement without compromising the effectiveness of the device, in
which case the equipment is ``subject to the EAR'' under ECCN 1A004.
Related Definitions: * * *
Items:
* * * * *
    a. Full face masks, filter canisters and decontamination
equipment therefor, designed or modified for defense against any of
the following, and ``specially designed'' ``components'' therefor:
* * * * *
    c. Detection systems, ``specially designed'' or modified for
detection or identification of any of the following, and ``specially
designed'' ``components'' therefor:
* * * * *

    Technical Notes:

    1. 1A004 includes equipment, ``components'' that have been
`identified,' successfully tested to national standards or otherwise
proven effective, for the detection of or defense against
radioactive materials ``adapted for use in war,'' biological agents
``adapted for use in war,'' chemical warfare agent, `simulants' or
``riot control agents,'' even if such equipment or ``components''
are used in civil industries such as mining, quarrying, agriculture,
pharmaceuticals, medical, veterinary, environmental, waste
management, or the food industry.
* * * * *

0
52. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A005 is amended:
0
a. By revising the heading;
0
b. By revising the ``Related Controls'' paragraph (1) in the List of
Items Controlled section; and
0
c. By revising ``items'' paragraph a in the List of Items Controlled
section to read as follows:

1A005 Body armor and ``specially designed'' ``components'' therefor,
as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) Bulletproof and bullet resistant vests (body
armor) NIJ levels III and IV, are ``subject to the ITAR'' (see 22
CFR parts 120 through 130, including USML Categories X(a) and
XIII(e)). * * *
Related Definitions: * * *
Items:
    a. Soft body armor not manufactured to military standards or
specifications, or to their equivalents, and ``specially designed''
components therefor;
* * * * *

0
53. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A006 is amended:
0
a. By revising the heading; and
0
b. By revising the ``Related Controls'' paragraph in the List of Items
Controlled section to read as follows:

1A006 Equipment, ``specially designed'' or modified for the disposal
of improvised explosive devices, as follows (see List of Items
Controlled), and ``specially designed'' ``components'' and
``accessories'' therefor.
* * * * *

List of Items Controlled

* * * * *
Related Controls: Equipment ``specially designed'' for military use
for the disposal of improvised explosive devices is ``subject to the
ITAR'' (see 22 CFR parts 120 through 130, including USML Category
IV).
* * * * *

0
54. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A007 is amended by revising the ``Related Controls'' paragraph
in the List of Items Controlled section to read as follows:

1A007 Equipment and devices, ``specially designed'' to initiate
charges and devices containing energetic materials, by electrical
means, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) Equipment and devices ``specially designed''
for military use are ``subject to the ITAR'' (see 22 CFR parts 120
through 130). (2) This entry does not control detonators using only
primary explosives, such as lead azide. (3) See also 3A229. (4) See
1E001 for ``development'' and ``production'' technology controls,
and 1E201 for ``use'' technology controls.
* * * * *

0
55. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A008 is amended:
0
a. By revising the heading;
0
b. By revising the introductory text of ``Related Controls'' paragraph
(1) and the ``Related Controls'' paragraph (2) in the List of Items
Controlled section; and
0
c. By revising the introductory text of ``items'' paragraph b in the
List of Items Controlled section to read as follows:

1A008 Charges, devices and ``components,'' as follows (see List of
Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) All of the following are ``subject to the
ITAR'' (see 22 CFR parts 120 through 130):
* * * * *
    (2) See also ECCNs 1C011, 1C018, 1C111, and 1C239 for additional
controlled energetic materials. See ECCN 1E001 for the
``development'' or ``production'' ``technology'' for the commodities
controlled by ECCN 1A008, but not for explosives or commodities that
are ``subject to the ITAR.''
* * * * *
Items:
* * * * *
    b. Linear shaped cutting charges having all of the following,
and ``specially designed'' ``components'' therefor:
* * * * *

0
56. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A101 is amended:
0
a. By revising the heading; and
0
b. By revising the ``Related Controls'' paragraph in the List of Items
Controlled to read as follows:

1A101 Devices for reduced observables such as radar reflectivity,
ultraviolet/infrared signatures and acoustic signatures, for
applications usable in rockets, missiles, or unmanned aerial
vehicles capable of achieving a ``range'' equal to or greater than
300 km or their complete subsystems.
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) See also 1C101. (2) For commodities that meet
the definition of defense articles under 22 CFR 120.3 of the
International Traffic in Arms Regulations (ITAR), which describes
similar commodities ``subject to the ITAR'' (See 22 CFR parts 120
through 130, including USML Category XIII).

* * * * *

0
57. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A102 is amended by revising the heading to read as follows:

1A102 Resaturated pyrolized carbon-carbon ``parts'' and
``components'' designed for rockets, missiles, or unmanned aerial
vehicles capable of achieving a ``range'' equal to or greater than
300 km. (These items are ``subject to the ITAR.'' See 22 CFR parts
120 through 130.)
* * * * *

0
58. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A290 is amended by revising the ``Related Controls'' paragraphs
(1) and (3) in the List of Items Controlled section to read as follows:

1A290 Depleted uranium (any uranium containing less than 0.711% of
the isotope U-235) in shipments of more than 1,000 kilograms in the
form of shielding contained in X-ray units, radiographic exposure or
teletherapy devices, radioactive thermoelectric generators, or
packaging for the transportation of radioactive materials.
* * * * *

List of Items Controlled

* * * * *
Related Controls: (1) This entry does not control depleted uranium
in fabricated forms for use in munitions. See 22 CFR part 121 for
depleted uranium ``subject to the ITAR'' * * * (3) ``Natural
uranium'' or ``depleted uranium'' or thorium in the form of metal,
alloy, chemical compound or concentrate and any other material
containing one or more of the foregoing are subject to the export
licensing authority of the Nuclear Regulatory Commission (see 10 CFR
part 110).
* * * * *

0
59. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A985 is amended by revising the ``Related Controls'' paragraph
in the List of Items Controlled section to read as follows:

1A985 Fingerprinting powders, dyes, and inks.
* * * * *

List of Items Controlled

* * * * *
Related Controls: See 3A981.
* * * * *

0
60. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1A995 is amended by revising the heading to read as follows:

1A995 Protective and detection equipment not ``specially designed''
for military use and not controlled by ECCN 1A004 or ECCN 2B351, as
follows (see List of Items Controlled), and ``parts'' and
``components'' not ``specially designed'' for military use and not
controlled by ECCN 1A004 or ECCN 2B351 therefor.
* * * * *

0
61. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1B001 is amended:
0
a. By revising the heading; and
0
b. By revising ``items'' paragraph f.2 in the List of Items Controlled
section to read as follows:

1B001 Equipment for the production or inspection of ``composite''
structures or laminates controlled by 1A002 or ``fibrous or
filamentary materials'' controlled by 1C010, as follows (see List of
Items Controlled), and ``specially designed'' ``components'' and
``accessories'' therefor.
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    f.2. Numerically controlled ultrasonic testing machines of which
the motions for positioning transmitters or receivers are
simultaneously coordinated and programmed in four or more axes to
follow the three dimensional contours of the ``part'' or ``component''
under inspection;
* * * * *

0
62. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1B003 is amended:
0
a. By revising ``Related Controls'' paragraph in the List of Items
Controlled section; and
0
b. By revising ``items'' paragraph c in the List of Items Controlled
section to read as follows:

1B003 Tools, dies, molds or fixtures, for ``superplastic forming''
or ``diffusion bonding'' titanium, aluminum or their alloys,
``specially designed'' for the manufacture of any of the following
(see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: For ``specially designed'' production equipment of
systems, sub-systems, and ``parts'' and ``components'' controlled by
9A005 to 9A009, 9A011, 9A101, 9A105 to 9A109, 9A111, and 9A116 to
9A120 usable in ``missiles,'' see 9B115.
* * * * *
Items:
* * * * *

    c. ``Specially designed'' ``parts'' and ``components'' for
structures specified by 1B003.a or for engines specified by 1B003.b.
* * * * *

0
63. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1B018 is amended by revising the heading to read as follows:

1B018 Items on the Wassenaar Arrangement Munitions List (see List of
Items Controlled).
* * * * *

0
64. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1B101 is amended:
0
a. By revising the heading; and
0
b. By revising ``Related Definitions'' paragraph in the List of Items
Controlled section to read as follows:

1B101 Equipment, other than that controlled by 1B001, for the
``production'' of structural composites, fibers, prepregs or
preforms, usable for rockets, missiles, or unmanned aerial vehicles
capable of achieving a ``range'' equal to or greater than 300 km and
their subsystems, as follows (see List of Items Controlled); and
``specially designed'' ``parts,'' ``components'' and ``accessories''
therefor.
* * * * *

List of Items Controlled

* * * * *
Related Definitions: Examples of ``parts,'' ``components'' and
accessories for the machines controlled by this entry are molds,
mandrels, dies, fixtures and tooling for the preform pressing,
curing, casting, sintering or bonding of composite structures,
laminates and manufactures thereof.
* * * * *

0
65. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms'' and ``Toxins,'' Export Control Classification Number
(ECCN) 1B102 is amended:
0
a. By revising the heading; and
0
b. By revising the introductory text of ``items'' paragraph b in List