[Federal Register Volume 77, Number 127 (Monday, July 2, 2012)]
[Rules and Regulations]
[Pages 39353-39383]
[FR Doc No: 2012-15079]

Vol. 77

Monday,

No. 127

July 2, 2012

Part II

Department of Commerce

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Bureau of Industry and Security

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15 CFR Parts 734, 738, 740, et al.

Wassenaar Arrangement 2011 Plenary Agreements Implementation: Commerce
Control List, Definitions, New Participating State (Mexico) and
Reports; Final Rule

Federal Register / Vol. 77 , No. 127 / Monday, July 2, 2012 / Rules
and Regulations

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 738, 740, 742, 743, 744, 746, 748, 752, 770, 772,
774

[Docket No. 111220789-1017-01]
RIN 0694-AF50

Wassenaar Arrangement 2011 Plenary Agreements Implementation:
Commerce Control List, Definitions, New Participating State (Mexico)
and Reports

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) maintains, as part
of its Export Administration Regulations (EAR), the Commerce Control
List (CCL), which identifies items subject to Department of Commerce
export controls. This final rule revises the CCL to implement changes
made to the Wassenaar Arrangement's List of Dual-Use Goods and
Technologies (Wassenaar List) maintained and agreed to by governments
participating in the Wassenaar Arrangement on Export Controls for
Conventional Arms and Dual-Use Goods and Technologies (Wassenaar
Arrangement, or WA) at the December 2011 WA Plenary Meeting (the
Plenary). The Wassenaar Arrangement advocates implementation of
effective export controls on strategic items with the objective of
improving regional and international security and stability. To
harmonize the CCL with the changes made to the Wassenaar List at the
Plenary, this rule amends entries on the CCL that are controlled for
national security reasons in Categories 1, 2, 3, 4, 5 Parts I & II, 6,
7, 8, and 9; revises reporting requirements; and adds, removes, and
amends definitions in the EAR.
    This rule raises the Adjusted Peak Performance (APP) parameter for
high performance computers. President Obama sent the report required to
make this change to Congress on March 16, 2012. This rule also raises
the APP eligibility level for deemed exports of computers in License
Exception APP.
    This final rule also revises the CCL and definitions of terms used
in the EAR to implement changes to the WA list that pertain to low
light level (LLL) items that were agreed upon by the WA in December
2007 through 2011 at the Wassenaar Arrangement Plenary Meetings.
    Additionally, this rule adds Mexico as the 41st Participating State
in the list of WA members in the EAR.

DATES: Effective Date: This rule is effective: July 2, 2012.

FOR FURTHER INFORMATION CONTACT: For general questions contact Sharron
Cook, Office of Exporter Services, Bureau of Industry and Security,
U.S. Department of Commerce at<PHONE_NUMBER> or by email:
<EMAIL_ADDRESS>For technical questions contact:
Category 1: Michael Rithmire at<PHONE_NUMBER>
Category 2: George Loh at<PHONE_NUMBER>
Category 3: Brian Baker at<PHONE_NUMBER>
Category 4: Joseph Young at<PHONE_NUMBER>
Category 5: Part 1: Joseph Young at<PHONE_NUMBER>
Category 5: Part 2: ITCD staff<PHONE_NUMBER>
Category 6: (optics): Chris Costanzo at<PHONE_NUMBER>
Category 6: (lasers): Mark Jaso at<PHONE_NUMBER>
Category 6: (sensors and cameras): John Varesi<PHONE_NUMBER>
Categories 7 and 9: Daniel Squire at<PHONE_NUMBER>
Category 8: Darrell Spires at<PHONE_NUMBER>

SUPPLEMENTARY INFORMATION:

Background

    The Wassenaar Arrangement (WA) on Export Controls for Conventional
Arms and Dual-Use Goods and Technologies is a group of 41 like-minded
states committed to promoting responsibility and transparency in the
global arms trade, and preventing destabilizing accumulations of arms.
As a Participating State, the United States has committed to
controlling for export all items on the WA control lists. The lists
were first established in 1996 and have been revised annually
thereafter. Proposals for changes to the WA control lists that achieve
consensus are approved by Participating States at annual December
Plenary meetings. Participating States are charged with implementing
the agreed list changes as soon as possible after approval.
Implementation of WA list changes ensures U.S. companies have a level
playing field with their competitors in other WA member states.

Revisions to the Commerce Control List

    Out of the 44 ECCNs this rule revises, the following 28 ECCNs on
the Commerce Control List (CCL) are revised to implement the changes to
the Wassenaar List of Dual-Use Goods and Technologies agreed to at the
December 2011 WA Plenary meeting: ECCNs 1A004, 1A005, 1C006, 1C008,
2B001, 2B008, 2B009, 2E001, 3A001, 3A002, 3B001, 3C001, 3E003, 4A003,
5A001, 5B001, 5D001,5E001, 5A002, 6A001, 7A004, 7D002, 7D003, 7E004,
8A002, 9A012, 9D004 and 9E003.
    Corresponding changes related to the addition of 5A001.i are made
to ECCNs: 5A980, 5D980, and 5E980. Corresponding changes are made to
ECCN 3E002 to reflect the raising of the Adjusted Peak Performance
(APP) control level of high performance computers in ECCN 4A003, in so
far as these changes impact deemed export eligibility under License
Exception CIV.
    To complete the implementation of the December 2007, 2008, and 2009
agreed revisions to the Wassenaar List of Dual Use Goods and
Technologies, this rule revises ECCNs: 0A919, 6A002, 6A003, 6D991,
6D994, 6E001, 6E002, 6E101, and 8A002, as described below.
    Corrections that are not part of the WA 2011 agreements, but that
are essential to the scope of control of these WA listed items, are
made to the following ECCNs: 3A001.f, 3E001, 6B008, 7A003 and 7A005.
These changes are described in more detail below.
    The Wassenaar Arrangement Task Force on Editorial Issues (TFEI)
made revisions, editorial in nature, to clarify or correct control text
or remove extraneous text. The TFEI revisions (over 2,000) were agreed
upon by the WA in December 2007. This rule implements those TFEI
revisions that coincide with the revisions to ECCNs affected by the
2007, 2008, 2009, and 2010 WA changes to ECCNs 6A002, 6A003, 6E001,
6E002, and 8A002.
    As a result of the changes made to the Technical Notes to Category
2 Product Group B and to ECCN 2B001, there are corresponding changes to
ECCNs 2A201 and 2A991, as well as the definition of ``positioning
accuracy'' in Section 772.1.

Category 0 Nuclear Materials, Facilities, and Equipment [and
Miscellaneous Items]

ECCN 0A919 ``Military commodities''

    This rule revises paragraph 0A919.d to add reference to ECCNs
6A003.b.3 and 6A003.b.4.c. Therefore, ECCN 0A919 will control
``military commodities'' that incorporate one or more cameras
controlled under ECCN 6A003.b.3, b.4.b, or 6A003.b.4.c. In addition,
the RS control paragraph is revised to add a citation reference that
states ``see Sec.  742.6(a)(3) for license requirements.'' ECCN 0A919
is controlled for RS:1, AT:1 and UN for Rwanda (see Section 746.7)
reasons for control. There are special RS Column 1 license requirements
applicable for ECCN 0A919, found in Section

742.6(a)(3), therefore the Commerce Country Chart is not used to
determine license requirements for the RS Column 1 control. The special
RS:1 license requirements for ECCN 0A919 require a license for
reexports to all destinations, except Canada, except when such items
are being reexported as part of a military deployment by a unit of the
government of Albania, Australia, Austria, Belgium, Bulgaria, Canada,
Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia,
Lithuania, Luxembourg, Malta, the Netherlands, New Zealand, Norway,
Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, South
Korea, Spain, Sweden, Switzerland, Turkey, the United Kingdom or the
United States.

Category 1 Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins''

ECCN 1A004 (Protective and detection equipment and components)

    A Note is added after the introductory paragraph a. in the Items
paragraph to clarify that the scope of the control on gas masks, filter
canisters, and decontamination equipment includes Powered Air Purifying
Respirators (PAPR) that are designed or modified for defense against
agents or materials listed in 1A004.a.

ECCN 1A005 (Body armor)

    The Heading and the List of Items Controlled are revised to make
them clearer. The control paragraphs for ``body armor'' are expanded
from one paragraph to two, of which the first lists ``soft body armor *
* *'' and second lists ``hard body armor plates providing ballistic
protection* * *.''
    Note 1 is revised by removing the phrase ``or protective garments''
to be more specific and to harmonize with the scope of the control. The
revision also replaces ``their'' with ``its'' to correct the grammar in
the Note.
    Note 3 is added to make it clear that 1A005 controls body armor
that provides ballistic protection and thus ``does not apply to body
armor designed to provide protection only from knife, spike, needle or
blunt trauma.''

ECCN 1C006 (Fluids and Lubricating Materials)

    A Note to paragraph 1C006.d is added so that it ``does not apply to
materials specified and packaged as medical products.'' Some WA
countries have not controlled such materials based on the medical
Statement of Understanding (SOU). Other WA countries interpret the SOU
strictly as applying only to medical equipment and controlled medical
materials. This note is added to clarify that these fluids and
lubricating materials, when specified and packaged as medical products,
are not subject to control.

ECCN 1C008 (Non-Fluorinated Polymeric Substances)

    The Items paragraph is amended by revising paragraphs a.4 and f. to
harmonize them with a glass transition temperature parameter
(Tg) that was added to the 1C008.a.2 entry for polyamide-
imides (PAIs) in 2010. The value specified is 563 K (290 [deg]C). This
new value exceeded the Tg value in 1C008.a.4 for aromatic
polyetherimides (PEIs) and in 1C008.f for polybiphenylenethersulphones.
The polyimide family, which includes both PAI and PEI, has similar
performance characteristics within its overall structure, as do
Polysulphone materials, and therefore, the Tg values in
1C008.a.4 (PEI in the polyimide family) and .f (the Polysulphone
family) are harmonized with the Tg values in 1C008.a.2 (PAI
in the polyimide family).

Category 1 ``Special Materials and Related Equipment,'' Annex ``List of
Explosives (See ECCNs 1A004 and 1A008)''

    Paragraph 32.g (NTDNA (2-nitrotriazole 5-dinitramide) (CAS 75393-
84-9)) of the Annex is removed and reserved to implement a WA 2010
agreement to delete NTDNA (2-nitrotriazole 5-dinitramide) (CAS 75393-
84-9) from its Munitions List because the CAS number of 75393-84-9 did
not correspond to NTDNA (2-nitrotriazole 5-dinitramide).

Category 2--Materials Processing

    The Notes for Category 2B are removed, as they are redundant to the
Technical Notes for 2B.
    The Technical Notes for 2B001 to 2B009 are amended to account for
changing the year from 1988 to 2006 for ISO 230/2. In order to
streamline export controls for Category 2B machine tools, BIS is going
to use ISO 230/2 (2006) for 2B001 to 2B009, 2B201, 2B290 and 2B991 to
2B999. Although the Nuclear Supplier's Group (NSG) has not yet updated
the ISO standard it uses, there are plans to go in that direction.
Therefore, the Heading to the Technical Note is changed to ``Technical
Notes for 2B001 to 2B009, 2B201, 2B290 and 2B991 to 2B999.''
    Technical Note 5 is removed and Technical Note 6 is redesignated as
Technical Note 5, to harmonize the EAR with the Technical Note in the
WA's List.
    Newly designated Note 5 (former Note 6) is revised by correcting
capitalization, removing the word ``levels'', changing the year of the
ISO from ``1988'' to ``2006'', and adding single quotes around the term
`Stated positioning accuracy.' WA agreed to the new ISO standard ``ISO
230/2 (2006),'' because the previous standard was cancelled when the
new one was revised. A Note designation of ``Note to paragraph 5'' is
added in front of ``Determination of `Stated Positioning Accuracy' '',
because this was an undesignated paragraph, which is not allowable in
Federal Register format.
    Newly designated Note to paragraph 5, paragraph b is amended by
replacing the ISO year 1988 with 2006. Paragraph f of this note is
amended by replacing the stated accuracy of 6 microns with 5 microns
for grinding machines and 8 microns with 6.5 microns for milling and
turning machines.
    A Note 6 paragraph is added to the Technical Notes to state,
``Measurement uncertainty for the positioning accuracy of machine
tools, as defined in the International Standard ISO 230/2 (2006), shall
not be considered.''

ECCN 2B001 (Machine Tools)

    The NP control paragraph in the License Requirements section is
amended by replacing 0.030 mm with 22.5 [mu]m to align the number with
the ISO 230/2 (2006) standard.
    Paragraphs 2B001.a.1, b.1.a, and c.1.a (position accuracy) are
amended by replacing the word ``any'' with the phrase ``one or more.''
WA made this amendment to reflect its intent that one may not classify
such machine tools by referring only to the one axis with the poorest
positioning accuracy.
    Paragraphs 2B001.a.1, b.1., b.3., c.1.a. and paragraph .b in the
Notes to 2B001.c are amended by adding ``according to ISO 230/2 (2006)
wherever the term ``positioning accuracy'' or ``positioning
accuracies'' is used.
    Paragraphs a.1 and b.1.a are amended by replacing the positioning
accuracy of ``6 [mu]m'' with ``4.5 [mu]m'' to align with the WA list.
    Paragraphs b.3 and c.1.a, as well as paragraph b to the Note to
2B001.c are amended by replacing the positioning accuracy of ``4
[mu]m'' with ``3 [mu]m'' to align with the WA list.

ECCN 2B008 (Assemblies and Units Specially Designed for Machine Tools
or Dimensional Inspection or Measuring Systems and Equipment)

    This rule moves the examples of linear position feedback units in

paragraph 2B008.a and the examples of rotary position feedback units in
paragraph 2B008.b into a new Note added after paragraphs .a and .b.
This Note also provides a description of the types of units controlled
by these paragraphs.

ECCN 2B009 (Spin Forming Machines and Flow Forming Machines)

    Paragraph 2B009.a is amended by increasing the number of axes from
``two or more'' to ``three or more,'' which is a harmonization with the
Missile Technology Control Regime (MTCR) control. In addition, the two
axes machines having limited contouring capabilities are being replaced
by the versatile three or more axes machines due to the technology
advancement in the industry.

ECCN 2B201 (Machine Tools)

    A new Note is added to the beginning of the Items paragraph to
explain that BIS has adopted the ISO 230/2 (2006) standard for use in
2B201. BIS and the Department of Energy decided to utilize one standard
to streamline export compliance and license review of all EAR
controlled machine tools, and because the Nuclear Suppliers Group (NSG)
will eventually adopt the new ISO 230/2 (2006) standard. The ISO 230/2
(1988 and 1997) standards were cancelled when revisions to the standard
were adopted in 2006.
    Paragraph 2B201.a is amended by deleting double quotes around the
term ``positioning accuracies.'' Double quoted words in the EAR are
terms that are defined in Part 772 of the EAR. Because the definition
in Part 772 no longer aligns with the new ISO 230/2 (2006), this rule
removes the quotes around ``positioning accuracies.''
    Paragraphs 2B201.a and b.1 are amended by replacing ``6.0 [mu]m''
with ``4.5 [mu]m'' in order to state the correct positioning accuracy
for the new standard.
    Paragraph 2B201.c.1 is amended by replacing ``4.0 [mu]m'' with ``3
[mu]m'' in order to state the correct positioning accuracy for the new
standard.
    Paragraph b in the Note to 2B201.b for milling machines is amended
by replacing ``30 [mu]m'' with ``22.5 [mu]m'' in order to state the
correct positioning accuracy for the new standard.

ECCN 2B991 (Numerical Control Units for Machine Tools and ``Numerically
Controlled Machine Tools'')

    Paragraphs c.2.a, c.2.b, and c.2.c are amended by replacing ``0.020
mm'' with ``15 [mu]m'' in order to state the correct positioning
accuracy for the new ISO 230/2 (2006) standard.

ECCN 2E001

    A Note is added to the Items paragraph to clarify that the scope of
the 2E001 control includes ``technology'' for the integration of probe
systems into coordinate measurement machines specified by 2B006.a.

Category 3--Electronics

    Product Group A is amended by revising Notes 1, 2 and the Nota Bene
to add a reference to a new paragraph 3A001.a.13. The Notes and the
Nota Bene provide guidance on classifying products described in
Category 3.

ECCN 3A001 (Electronic Components and Specially Designed Components
Therefor)

    The License Exception GBS paragraph is revised to add eligibility
for the new paragraph 3A001.a.13.
    The License Exception CIV paragraph is revised to correct a
reference to 3A001.a.11.
    Paragraph 3A001.a.13 is added to control Direct Digital Synthesizer
(DDS) integrated circuits having specified parameters. The parameters
are harmonized with those for the high performance Digital to Analog
Converter in 3A001.a.5.b. This new control fills a gap between
exclusively military DDS circuits and dual-use circuits developed for
both civil telecommunications testing purposes and military
communications, electronic countermeasures, and radar applications.
    Paragraph b.10 is amended by replacing the word ``designed'' with
``specified'' because the design intent of such items is difficult to
obtain with the passage of time.
    Paragraphs b.11.d and b.11.e are revised, and two new paragraphs,
b.11.f and b.11.g, are added to the List of Items Controlled section.
These paragraphs contain parameters that describe frequency change
within a frequency range for ``frequency synthesizer'' ``electronic
assemblies.'' These changes extend the frequency range in 3A001.b.11 to
70 GHz and add new frequency breakouts to align with the changes made
to 3A002.d.3 (Frequency synthesized signal generators- ``frequency
switching time'') in 2010.
    Paragraph 3A001.e.1.b (high energy devices) is amended by revising
the energy density parameter for ``secondary cells'' from 250 to 300
Wh/kg to account for advances in technology in this area.
    Paragraphs 3A001.f.1 and f.2 are removed to implement a 2008 WA
agreement regarding this control that was inadvertently not reflected
in the rule BIS published on December 11, 2009 (74 FR 66003).

ECCN 3A002 (General Purpose Electronic Equipment and Accessories
Therefor)

    3A002.d.1 is revised by cascading the parameters into two
subparagraphs. The existing parameter is moved from paragraph .d.1 to
.d.1.a, and a new parameter is added to read ``On/off ratio equal to or
exceeding 65 dB.'' The new control parameter ``on/off ratio'' clarifies
that pulses are two-dimensional, having both width and depth.
    Paragraphs 3A002.d.4, d.4.a, and d.4.b are revised. These revisions
clarify that the Single Sideband (SSB) phase noise control applies
anywhere within the specified frequency range. The amendments also make
the grammatical structure similar to that used in other subparagraphs
of 3A002.d, and also of 3A002.c, for controls based on combination of
frequency and other parameters.
    Technical Note 1 of paragraph d.5 is revised, and a corresponding
change is made to Technical Note 2 to harmonize it with the change to
3A002.d.1. Technical Note 1 referenced the ``theoretical'' Nyquist
factor of two (2). In engineering practice, ideal behavior cannot be
achieved to generate a Radio-frequency (RF) output signal having low
distortion and usable quality without using a factor larger than two.
Industry's practice is to use a factor of at least 2.5. The revision to
Technical Note 1 clarifies that instruments based on Digital-to-Analog
Converter/Direct Digital Synthesizer (DAC/DDS) chipsets should not be
evaluated using the theoretical Nyquist value of two (2), but instead
by using the industry-accepted standard value of 2.5. In addition, the
sentence ``Or, when oversampling is used, the maximum direct output
capability is proportionately lower'' incorrectly used the term
``oversampling'' to refer to the sampling interval. Removing
``oversampling'' and specifying that a value of 2.5 should be used
makes the sentence clearer. The inclusion of the term ``maximum''
clarifies that the sample rate equates to a maximum frequency but does
not preclude operation of the instrument at lower frequencies.
    Paragraph 3A002.e.1 is revised to clarify that the output power
threshold applies only within the specified frequency range (43.5-70
GHz). The grammatical structure in this paragraph is also revised to
harmonize it with 3A002.c and 3A002.d, which contain controls based on
a combination of frequency and other parameters.
    3A002.f.1 is revised by changing the maximum operating frequency
from 43.5 GHz to 70 GHz. This change to the

frequency control threshold for microwave test receivers makes 3A002.f
consistent with the control thresholds for other controlled microwave
instruments, such as those described in 3A002.c, 3A002.d, and 3A002.e.
This change also recognizes the emerging civilian uses of the ~60 GHz
frequency space. Additionally, it will ensure that instruments such as
network analyzers and signal analyzers that were decontrolled in prior
years do not inadvertently remain controlled by 3A002.f.

ECCN 3B001 (Equipment for the Manufacturing of Semiconductor Devices or
Materials)

    WA agreed to remove 3B001.a.2 (Metal Organic Chemical Vapor
Deposition (MOCVD) reactors) from the WA Sensitive List (SL).
Therefore, License Exception GBS is amended by removing the eligibility
exception for 3B001.a.2. License Exception CIV is also amended by
adding 3B001.a.2 to the eligibility paragraph. The License Exception
STA paragraph is removed from the License Exception section because
3B001.a.2 is no longer ineligible. MOCVD equipment had been added to
the WA SL before 1996. The reason for the inclusion was the strategic
importance of such equipment and its widespread capabilities for the
manufacturing of high frequency semiconductor devices that could be
useful for military radar systems, sensors, and communication devices.
MOCVD equipment are now commonly used to fabricate mass market consumer
products such as luminescence diodes, laser diodes, and high frequency
semiconductor devices for mobile phones. Exported systems typically are
dedicated to mass production. Thus, WA concluded that this type of
equipment was not of such strategic importance to warrant it being on
the WA SL.
    Paragraph 3B001.d (Plasma enhanced Chemical Vapor Deposition
(PECVD) equipment) is removed and reserved. WA determined that such
equipment is widely available and does not merit control because it is
overwhelmingly used in civil consumer applications. Moreover, there was
no basis for controlling this one type of deposition equipment when no
other types are or have been controlled.
    Paragraph 3B001.e.1 is revised by this rule to remove a reference
to 3B001.d.

ECCN 3C001 (Hetero-Epitaxial Materials)

    A Note is added to paragraph 3C001.d to explain that ``3C001.d does
not apply to a ``substrate'' having one or more P-type epitaxial layers
of GaN, InGaN, AlGaN, InAlN, InAlGaN, GaP, InGaP, AlInP or InGaAlP,
independent of the sequence of the elements, except if the P-type
epitaxial layer is between N-type layers.'' Hetero-epitaxially grown
III/V compound semiconductor multi-layers have been widely used for
high-speed electronic devices and light emitting devices such as laser
diodes (LDs) and light-emitting diodes (LEDs). The purpose of adding
the Note is to decrease controls on LEDs to accommodate the fast
growing commercial LED industry, while maintaining controls on the more
sensitive LDs that have non-civil applications.

ECCN 3E001

    The national security paragraph of the License Requirements section
is corrected by adding ECCN 3A003, which was inadvertently left out of
the NS:1 control paragraph. Although ECCN 3E001 controls both
``production'' and ``development'' technology, there is a Note in its
Items paragraph that states, ``3E001 does not control ``technology''
for the ``production'' of equipment or components controlled by
3A003.'' Therefore, NS:1 and AT:1 only apply to the ``technology'' for
the ``development'' of equipment or components controlled by 3A003.
Technology for the ``development'' of equipment or components
controlled by 3A003 is eligible for License Exceptions TSR and STA, as
well as transaction-based license exceptions as long as all the
criteria for these license exceptions are met and none of the
restrictions of Section 740.2 apply.

ECCN 3E002

    The License Exception CIV paragraph in the License Exception
section of ECCN 3E002 is amended by revising the word
``microprocessors'' to read ``microprocessor cores'' to more accurately
describe the scope for License Exception CIV. In addition, this rule
raises the eligibility level for technology and software source code
for the ``development'' or ``production'' of general purpose
microprocessor cores with a vector processor unit with operand length
of 64-bit or less, 64-bit floating operations from ``not exceeding 32
GFLOPs'' to ``not exceeding 50 GFLOPS'', or 16-bit or more floating-
point operations from ``not exceeding 32 GMACS'' to ``not exceeding 50
GMACS.'' Deemed exports under License Exception CIV are subject to a
Foreign National Review (FNR) requirement (see Section 740.5 of the EAR
for more information about the FNR). License Exception CIV does not
apply to ECCN 3E002 technology also required for the development or
production of items controlled under ECCNs beginning with 3A, 3B, or
3C, or to ECCN 3E002 technology also controlled under ECCN 3E003. This
amendment makes it clear that classification and application
determinations should be based on the performance target of the
``core'' and not the complete processor. It also provides relief for
microprocessor manufacturers who employ foreign nationals working on
future higher performance core designs.

ECCN 3E003

    Paragraph 3E003.b is revised by adding the word ``electronic.'' It
now reads ``Hetero-structure semiconductor electronic devices * * *''.
The term ``electronic'' was added to clarify that 3E003 does not
control technology for the ``development'' or ``production'' of light
emitting diodes or solar cells, which is classified as EAR99.

Category 4--Computers

ECCN 4A003 (``Digital Computers,'' ``Electronic Assemblies,'' and
Related Equipment)

    The Heading is corrected to insert the parenthetical phrase ``(see
List of Items Controlled)''.
    The NS Column 2 paragraph is amended by removing the reference to
4A003.a, because 4A003.a is removed by this rule.
    The upper threshold of the ``Adjusted Peak Performance (APP)'' in
the Anti-Terrorism (AT) controls paragraph of the License Requirements
section is raised from 1.5 to 3.0 Weighted TeraFLOPS (WT) to harmonize
it with the change in 4A003.b.
    License Requirement Note 1 is amended by revising the two
references to APP levels from 1.5 to 3.0 WT to harmonize it with the
change in 4A003.b.
    The License Exception APP paragraph in the License Exceptions
section is amended by removing the reference to 4A003.a, because
4A003.a is removed by this rule.
    Paragraph 4A003.a, ``designed or modified for `fault tolerance,' ''
is removed and reserved. Once a specialty feature in military aerospace
applications and the telecommunication world, fault tolerance is now
commonplace. Advances in semiconductor technology and computer system
design have made control of fault tolerance neither warranted nor
feasible.
    The APP in paragraph 4A003.b is raised from 1.5 to 3.0 WT. In the
spring

of 2010, two top computer processor manufacturers announced the
availability of 8-core processors. These commercial processors are now
being integrated into high-performance computer systems (HPCs). Today,
almost all HPCs employ multi-core processors with four or more cores
per processor as the compute engine. It is expected that 6-core and 8-
core processors will be rapidly adopted in HPCs based on our experience
with the adoption of quad-core processors in 2009. Increases in both
the number of cores, and incremental clock improvements, will increase
WT values with no additional changes in system architecture.
Consequently, WA agreed to an adjustment of the computer threshold in
4A003.b from 1.5 to 3.0 WT.
    National Defense Authorization Act (NDAA) Congressional
Notification Requirement Subsections 1211(d) and (e) of the National
Defense Authorization Act (NDAA) for FY 1998 (Pub. L. 105-85, November
18, 1997, 111 Stat. 1932) provide that the President must submit a
report to Congress 60 days before adjusting the composite theoretical
performance level above which exports of digital computers to Tier 3
countries require a license. The President sent a report to Congress on
March 16, 2012 that establishes and provides justification for the 3.0
WT control level using the APP formula. The APP revisions described
above were not contested by Congress and became eligible for adjustment
on May 14, 2012 for exports and reexports to Computer Tier 3 countries.

Category 4, Product Group D

    Category 4, Product Group D is amended by removing the phrase ``the
`development,' `production,' or `use' of'' from the Note that appears
at the top of this Product Group, to clarify that this note applies to
all software in Category 4.

``Technical Note on ``Adjusted Peak Performance'' (``APP'')''

    Note 6 of the ``Technical Note on 'Adjusted Peak Performance'
('APP')'' is amended by adding a Technical Note that reads, ``Aggregate
all processors and accelerators operating simultaneously and located on
the same die.'' The change clarifies the method of calculating the APP
of a digital computer that employs a mixture of general purpose
processor cores and accelerators, coprocessors, or General-Purpose
computation on Graphics Processing Units (GPGPUs).

Category 5 Part I--``Telecommunications''

    Nota Bene 2, at the top of Category 5 Part I, is amended by adding
a comma to correct its punctuation.

ECCN 5A001 (Telecommunications Systems, Equipment, Components and
Accessories)

    Paragraph 5A001.i is added to the NS:2 control paragraph, which
requires a license to most destinations, except allied countries such
as members of the North Atlantic Treaty Organization (NATO).
Surreptitious Listening (SL) controls are added to control 5A001.i
equipment and a license is required for all destinations, including
Canada, as specified in Section 742.13 of the EAR. In addition, a cross
reference to Section 740.2(a)(3) is added to the License Requirement
Notes.
    Although, the License Exceptions section is not revised by this
rule, the addition of 5A001.i to Section 740.2(a)(3) ``Restrictions on
All License Exceptions'' makes 5A001.i ineligible for all license
exceptions, except when the equipment is consigned to and for the
official use of an agency of the U.S. Government (see Sec.
740.2(a)(3)), in which case License Exception GOV may apply for 5A001.i
and 5D001 (as it applies to 5A001.i or 5E001.a (as it applies to
5A001.i or 5D001.a (as it applies to 5A001.i))). License Exception GOV
does not apply for 5E001.a (as it applies to 5A001.i, or 5D001.a (as it
applies to 5A001.i)).
    Paragraph 5A001.b.5 (digitally controlled radio receivers) is moved
from the NS:2 control paragraph to the NS:1 paragraph. It warrants
worldwide controls because it is listed on both the WA Sensitive and
Very Sensitive Lists.
    The Note to 5A001.b.3.b is amended by adding another parameter for
radio equipment that is not controlled by 5A001.b.3.b, which reads,
``Fixed or mobile satellite Earth stations for commercial civil
telecommunications.'' This revision seeks to harmonize controls for
commercial civil satellite telecommunications products and technology
with civil cellular products and technology. The effect of this change
will be limited to spread spectrum equipment and technology in fixed or
mobile satellite earth stations for commercial civil
telecommunications.
    Paragraph 5A001.f (existing control on certain jamming equipment
for the selective interference, denial, or degradation of mobile
telecommunication services) is corrected by replacing the word
``therefore'' with ``therefor'' to harmonize it with the Wassenaar
List.
    This rule adds a new control in paragraph 5A001.i on ``Systems or
equipment, specially designed or modified to intercept and process the
air interface of 'mobile telecommunications,' and specially designed
components therefor.'' The new control includes an exclusion Note for
``equipment designed for `mobile telecommunications' network operators,
or for the ``development'' or ``production'' of `mobile
telecommunications' equipment or systems.'' It also includes a
Technical Note that defines ``mobile telecommunications'' as ``the
following telecommunications protocols or standards: GSM, GSM-R, GPRS,
IMT-2000, PMR (Professional Mobile Radio), Inmarsat, Iridium, Thuraya,
VSAT or ACES.'' Also included is a Nota Bene that refers to related
controls, ``See also 5A001.f, 5A980, and the U.S. Munitions List.''
Before this change, interception devices for mobile communications were
controlled in two particular cases--when such equipment was specially
designed or modified for military use, and when such equipment included
a cryptanalytic functionality. This amendment establishes multilateral
controls over interception devices for mobile communications that do
not fit into either of these cases.
    Effective with this rule, SL-controlled commodities controlled by
5A001.i, and related SL-controlled software in 5D001 (for 5A001.i
equipment or to support 5E001.a ``technology'' for 5A001.i equipment or
5D001.a ``software'' (for 5A001.i equipment)), are only eligible for
License Exception GOV, and only when the item is consigned to and for
the official use of an agency of the U.S. Government (see Sections
740.2(a)(3) and 740.11(b)(2)(ii) of the EAR). Technology controlled
under ECCN 5E001.a (for 5A001.i equipment and for 5D001.a ``software''
(for the 5A001.i equipment)) is not eligible for any license
exceptions. As a result of adding 5A001.i, this rule makes
corresponding revisions to Sec. Sec.  738.3(a)(1) (Commerce Country
Chart structure), 740.2(a)(3) (License exception restrictions),
742.13(a)(1) (Surreptitious listening devices), 746.7(a) (Iran) and
752.3(a)(7) (Items ineligible for Special Comprehensive License), in
order to align with the existing policies the EAR had in place for
surreptitious listening devices.

ECCN 5A980 (Devices Primarily Useful for the Surreptitious Interception
of Wire, Oral, or Electronic Communications)

    The Heading is revised to carve out 5A001.i from the scope of this
entry

because WA agreed to add that equipment to the WA Basic List. That
equipment is now controlled under 5A001 so that national security (NS)
controls can be placed on it.
    The Related Controls paragraph is revised to reference ECCNs
5A001.i, 5D980, and 5E980.

ECCN 5B001 (Telecommunication Test, Inspection and Production
Equipment, Components and Accessories)

    Paragraph 5B001.b.2.c is amended by removing the parenthetical
phrase ``(also called optical heterodyne or homodyne techniques)'' and
adding a Note and Technical Note to clarify that 5B001.b.2.c, as well
as 5E001.c.2.c, control both coherent optical transmission techniques
and coherent optical detection techniques, for synchronous optical
detection system (systems using an optical local oscillator in the
receiving side to synchronize with a carrier ``laser''), but not for
delay detection systems.
    Paragraph 5B001.b.2.d is amended by adding an ``or'' to correct the
grammar of the entry.
    Paragraph 5B001.b.5 (equipment employing ``common channel
signaling'') is removed, and as a consequential change, paragraph
5B001.b.4 is amended by replacing the semi-colon with a period and
removing the ``or.'' Paragraph 5B001.b.5 is removed because the
equipment is made obsolete by technical advances in this field. Related
changes to the EAR include the removal of paragraph 5E001.c.5 and the
removal of the term ``common signal channeling'' in Section 772.1 of
the EAR.

ECCN 5D001

    The License Requirements section is amended by adding SL
(Surreptitious Listening) to the Reasons for Control paragraph and by
adding SL controls for the following: 5D001.a ``software'' for the
``development,'' ``production,'' or ``use'' of equipment, functions or
features controlled by 5A001.i; 5D001.b ``software'' to support
``technology'' controlled by 5E001.a (for 5A001.i equipment, and for
5D001.a ``software'' for 5A001.i equipment); and 5D001.c ``software''
providing characteristics, functions or features of 5A001.i equipment.
A license is required for all destinations, as specified in Sec.
742.13 of the EAR. In addition, a cross reference to Section
740.2(a)(3) is added to the License Requirement Notes.
    Although, the License Exceptions section for 5D001 is not revised
by this rule, the addition of 5D001 to Section 740.2(a)(3)
``Restrictions on All License Exceptions'' makes 5D001 (as it applies
to 5A001.i or 5E001.a (as it applies to 5A001.i or 5D001.a (as it
applies to 5A001.i))) ineligible for all license exceptions, except
when the ``software'' is consigned to and for the official use of an
agency of the U.S. Government (see Sec.  740.2(a)(3)), in which case
License Exception GOV may apply for 5D001 (as it applies to 5A001.i or
5E001.a (as it applies to 5A001.i or 5D001.a (as it applies to
5A001.i))).
    The Related Controls paragraph is revised to add reference to ECCN
5D980.

ECCN 5D980

    The Heading is revised to carve out ``software'' for the equipment,
function, features, or characteristics controlled by 5A001.i (including
``software'' to support ``technology'' for 5A001.i controlled by
5E001.a) from the scope of 5D980 because that ``software'' is now
controlled by various paragraphs in 5D001.
    The Related Controls paragraph is revised to add references to
5D001 and 5E980.

ECCN 5E001

    The License Requirements section is revised to add surreptitious
listening (SL) controls for ``technology'' for the ``development'' or
``production'' of equipment, functions or features controlled by
5A001.i, or for the ``development'' or ``production'' of ``software''
controlled under ECCN 5D001.a (for 5A001.i equipment). A license is
required for all destinations, as specified in Sec.  742.13 of the EAR.
In addition, a cross reference to Section 740.2(a)(3) is added to the
License Requirement Notes.
    Although, the License Exceptions section for 5E001 is not revised
by this rule, the addition of 5E001.a (as it applies to 5A001.i, or
5D001.a (as it applies to 5A001.i)) to Section 740.2(a)(3)
``Restrictions on All License Exceptions'' makes it ineligible for all
license exceptions, including License Exception GOV.
    The Related Controls paragraph is revised to add a reference to
5E980.
    The Note to 5E001.b.4 is amended by adding another parameter for
radio equipment that is not controlled by 5E001.b.4, which reads,
``Fixed or mobile satellite Earth stations for commercial civil
telecommunications.'' This revision seeks to harmonize controls for
commercial civil satellite telecommunications products and technology
with civil cellular products and technology. The effect of this change
is limited to spread spectrum equipment and technology in fixed or
mobile satellite earth stations for commercial civil
telecommunications.
    Paragraph 5E001.c.1 (technology for the development or production
of equipment employing digital techniques) is amended by revising the
``total digital transfer rate'' from 50 Gbit/s to 120 Gbit/s. The
ratification of new IEEE standards in 2010 has advanced the IEEE
standards above the control threshold. Data rates are continuing to
increase, with some projections indicating the rate of increase will
accelerate. This amendment accounts for such developments.
    Paragraph 5E001.c.2.c is amended by removing the parenthetical
phrase ``(also called optical heterodyne or homodyne techniques)'' and
adding a Note and Technical Note to clarify that 5E001.c.2.c controls
``technology'' for the ``development'' or ``production'' of systems
using both coherent optical transmission techniques and coherent
optical detection techniques, for synchronous optical detection system
(systems using an optical local oscillator in the receiving side to
synchronize with a carrier ``laser''), but not for delay detection
systems.
    Paragraph 5E001.c.5 (technology for the development or production
of equipment employing ``common channel signaling'') is removed and
reserved because the technology is made obsolete by technical advances
in this field. Related changes include the removal of paragraph
5B001.b.5 and the removal of the term ``common signal channeling'' in
Section 772.1 of the EAR.

ECCN 5E980

    The Heading of ECCN 5E980 is revised to exclude ``technology'' that
is controlled by 5E001.a (for 5A001.i equipment, or for 5D001.a
``software'' for 5A001.i equipment). In addition, the Heading is
expanded to include ``functions or features of equipment.'' This
expands the scope of 5E980 to include ``technology'' primarily useful
for the ``development,'' ``production,'' or ``use'' of equipment,
functions or features of equipment controlled by 5A980 or ``software''
controlled by 5D980.
    In addition, when ECCN 5E980 was created, it was intended to
control ``technology'' for ``development,'' ``production'' or ``use''
of both 5A980 equipment and 5D980 ``software.'' Currently, the ECCN
does not reflect that control for 5D980 ``software.'' This rule
corrects this error by expanding the Heading of 5E980 to fix this
oversight.
    The Related Controls paragraph is amended by adding a reference to
5E001 (for 5A001.i equipment and 5D001.a ``software'' (for 5A001.i
equipment)).

Category 5 Part II--``Information Security''

ECCN 5A002 (``Information Security'' Systems, Equipment and Components
Therefor)

    The Note to 5A002.a.8 is added to clarify that 5A002.a.8 applies
only to the systems detecting physical intrusions communications at the
layer 1 (physical layer) of Open Systems Interconnection (OSI) 7 layer
model, and does not apply to network Intrusion Detection Systems (IDS)
and Intrusion Prevention Systems (IPS) working on layer 3-7 of OSI 7
layer model. The Open Systems Interconnection model (OSI model) was a
product of the Open Systems Interconnection effort at the International
Organization for Standardization. It is a way of sub-dividing a
communications system into smaller parts called layers. The physical
layer defines electrical and physical specifications for devices. In
particular, it defines the relationship between a device and a
transmission medium, such as a copper or optical cable.
    The new Note does not change the scope of the existing control on
communications cable systems under paragraph 5A002.a.8.

Category 6--Sensors and Lasers

ECCN 6A001 (Acoustic Systems, Equipment and Components)

    Paragraph 6A001.a.1.b is amended by adding the phrase, ``Systems or
transmitting and receiving arrays, designed for'' to clarify the scope
of control for object detection or location systems.
    A Technical Note is added to introductory paragraphs a.2.a
(following the Note) and a.2.b to clarify the terms ``hydrophones'' and
``hydrophone group.''
    Introductory paragraph a.2.e is amended by adding a hyphen between
``bay'' and ``cable'' to make ``bay-cable,'' as well as replacing the
word ``systems'' with ``hydrophone arrays'' to clarify the scope of
control.

ECCN 6A002 (Optical Sensors)

    The MT and RS control paragraphs of the License Requirements
section and License Exceptions LVS and STA paragraphs are amended by
removing the reference to paragraph 6A002.e, because 6A002.e was moved
to 6A002.a.1.d.
    The License Exception STA ineligibility paragraph for the eight
destinations listed in Section 740.20(c)(2) is amended by moving the
phrase ``to any of the eight destinations listed in Section
740.20(c)(2) of the EAR'' to clarify that all the text in the License
Exception STA ineligibility paragraph pertains to a prohibition to
apply License Exception STA to the eight (8) destinations in Section
740.20(c)(2) of the EAR. This rule also removes most of the text in the
License Exception STA paragraph, as 6A002.a.2, a.3.a, a.3.b, a.3.g and
.c are no longer eligible for License Exception STA. This revision
leaves only 6A002.a.1.a, a.1.b or a.1.c; 6A002.a.3.c, a.3.d, a.3.e, or
a.3.f; or 6A002.b in the License Exception STA ineligibility paragraph
for the eight (8) countries in Section 740.20(c)(2), see also Section
740.20(b)(2)(viii).
    The Items paragraph of the List of Items Controlled section is
amended by removing commas from 6A002.a, a.1, a.1.a, a.1.b, a.3, a.3.a,
a.3.b, a.3.c, a.3.d, a.3.e, d.2, and d.2.a to correct the punctuation
as part of the TFEI revisions.
    Paragraph 6A002.a is amended by removing the Note, because 6A002.a
no longer controls germanium or silicon photo devices. In addition,
paragraph 6A002.a is amended by removing the Nota Bene, because it is
more appropriately placed under 6A002.a.3 and doesn't need to be
repeated under 6A002.a.
    Paragraph 6A002.a.1 is amended by adding a Note to explain that
solid-state detectors include ``focal plane arrays'' (FPAs) for the
purpose of 6A002.a.1.
    Paragraph 6A002.e is moved to 6A002.a.1.d to ensure that for the
purposes of 6A002.a.1 all FPAs are considered solid state detectors and
all ``space qualified'' FPAs are now controlled under 6A002.a.1.
    A Note is added to 6A002.a.2 to indicate that 6A002.a.2 does not
control certain non-imaging photomultiplier tubes; and adding a
Technical Note to define `charge multiplication' and state that `charge
multiplication' sensors may take the form of an image intensifier tube,
solid state detector or ``focal plane array.''
    Paragraph 6A002.a.2.a.2 (regarding microchannel plates) is moved to
a.2.a.2.a, and paragraph 6A002.a.2.a.2 is revised to read ``Electron
image amplification using any of the following:''.
    Paragraph 6A002.a.2.a.2.b is added to control electron sensing
devices with a non-binned pixel pitch of 500 [mu]m or less, specially
designed or modified to achieve `charge multiplication' other than by a
microchannel plate.
    Paragraph 6A002.a.2.a.3.a is amended by rearranging the words to
clarify the control for multialkali photocathodes.
    Paragraphs 6A002.a.2.a.3.c and a.2.c.3 (formerly a.2.b.3) are
amended by adding double quotes around the term ``III-V compound'' to
indicate that this term is defined in Part 772 of the EAR.
    The Note following 6A002.a.2.a.3.c is combined with the control
parameter of 6A002.a.2.a.3.c to simplify the text. This is the first
use of the term ``radiant sensitivity'' in a control paragraph; see
Section 772.1 for the definition. The term is also used in:
6A002.a.2.b.3, Note to 6A002.a.2.c.3, 6A002.c, 6A002.a.3.a.2.b,
a.3.g.2, paragraph (c) of Note 2 after 6A002.a.3, and Note to
6A003.b.4.c.
    In addition, ECCN 6A002 is amended by:
    Redesignating 6A002.a.2.b as 6A002.a.2.c in order to add a new
paragraph 6A002.a.2.b to control another type of image intensifier
tubes with different parameters, including those using a microchannel
plate for electron image amplification;
    Removing and reserving a.2.c.2 (formerly a.2.b.2 GaAs or GaInAs
photocathodes) in order to combine it with a.2.c.3 (formerly a.2.b.3),
as well as adding a control for transferred electron photocathodes to
this paragraph, because these devices provide equivalent performance to
devices controlled in this entry;
    Revising the Note following 6A002.a.2.c.3 (formerly a.2.b.3) to
exclude from 6A002 controls certain compound semiconductor
photocathodes;
    Revising the Nota Bene to clarify that ``microbolometer'' non-
``space-qualified'' ``focal plane arrays'' are only specified by
6A002.a.3.f;
    Moving Technical Note 2, defining ``cross scan direction'' and
``scan direction,'' which follows 6A002.a.3 to now follow
6A002.a.3.d.2.b;
    A new paragraph (c) is added to the exclusion Note 2 after
6A002.a.3 to exclude certain ``focal plane arrays'' specially designed
or modified to achieve `charge multiplication' and limited by design to
have a maximum ``radiant sensitivity'' of 10 mA/W or less for
wavelengths exceeding 760 nm to control focal plane arrays that perform
outside the visible range;
    Adding a Technical Note after Note 2 for 6A002.a.3 to explain
``response limiting mechanism'';
    Reformatting 6A002.a.3.a.2 and 6A002.a.3.b.2 to allow for
flexibility to add more parameters in 6A002.a.3.a.2.b and a.3.b.2.b;
    Adding capitalization to ``Signal Processing In The Element'' in
6A002.a.3.d.2.b because that term is followed by the acronym `SPRITE',
to clarify the entry as part of the TFEI revisions;

    Adding an exclusion Note after 6A002.a.3.d.2.b stating
``6A002.a.3.d does not control ``focal plane arrays'' (not to exceed 32
elements) having detector elements limited solely to germanium
material'';
    Adding a Technical Note for 6A002.a.3 to add the definitions for
`cross-scan direction' and `scan direction';
    Replacing a period with a semi-colon in 6A002.a.3.e and a.3.f, to
correct the punctuation, as part of the TFEI revisions;
    Deleting Technical Notes 2 and 3 that followed 6A002.a.3.f to
harmonize with the Wassenaar Arrangement List;
    Adding a new paragraph 6A002.a.3.g to control certain non-``space-
qualified'' ``focal plane arrays'', because this component can be used
in low light imagers controlled in ECCN 6A003;
    Adding a comma and replacing a comma with an ``and'' in 6A002.b, as
part of the TFEI revisions to correct the punctuation and clarify the
entry;
    Removing the word ``Being'' from 6A002.b.2, as part of the TFEI
revisions to remove a superfluous word;
    Replacing the word ``Being'' with ``Having'' and adding the word
``characteristics'' in 6A002.b.2.b, pursuant to the TFEI revisions to
clarify the entry;
    Replacing the period with a semi-colon in 6A002.b.2.b.2, as part of
the TFEI revisions to correct the punctuation;
    Adding a Note after 6A002.b.2.b.2 to explain that 6A002.b.1 does
not control ``monospectral imaging sensors'' with certain parameters;
    Adding single quotes around the term `Direct view,' as part of the
TFEI revisions, and removing the parameter ``operating in the visible
or infrared spectrum,'' in 6A002.c and the Technical Note that follows
6A002.c.3;
    Adding a reference to 6A002.a.2.b and removing the ``or'' in
6A002.c.1;
    Adding an ``or'' in 6A002.c.2;
    Adding a new paragraph 6A002.c.3 to add a new parameter to control
`direct view' imaging equipment incorporating ``solid state detectors
specified by 6A002.a.1'' to close a potential loophole in the controls
for this type of equipment; and
    Moving 6A002.e to 6A002.a.1.d to ensure that for the purposes of
6A002.a.1 all focal plane arrays (FPAs) are considered solid state
detectors and all ``space qualified'' FPAs are now controlled under
6A002.a.1.

ECCN 6A003 (Cameras)

    The RS License Requirement paragraph is amended by adding
6A003.b.4.c. Therefore, these cameras will require a license to all
destinations, with the exception of Canada.
    The Related Control Note 3 is amended to add more descriptive text
and a more precise reference.
    The Related Control Notes 4 and 5 are amended to add references to
6A003.b.3 and 6A003.b.4.c. Related Control Note 4 references ECCN 0A919
for foreign made military commodities that incorporate cameras
described in 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c. Related Control
Note 5 references Section 744.9, which imposes license requirements on
cameras described in 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c if being
exported for incorporation into an item controlled by ECCN 0A919 or for
a military end user.
    In addition, ECCN 6A003 is amended by:
    Removing commas from 6A003.a.5, a.6, 6A003.b, as part of the TFEI
revisions to correct the punctuation;
    Replacing a period with a semi-colon in 6A003.a.5.b, a.6.b, and
6A003.b.1.b.3, as part of the TFEI revisions to correct the
punctuation;
    Replacing the word ``in'' with ``by'' and replacing a period with a
semi-colon in 6A003.a.6.b, as part of the TFEI revisions to clarify the
entry;
    Adding single quotes around ``camera tracking data'' in
6A003.b.1.b.3 and in Technical Note 2 that follows that paragraph, as
part of the TFEI revisions to indicate the term is defined in the
entry;
    Adding a new Note to release specific scanning cameras from
6A003.b.2 controls, because these cameras are only useful in industrial
and civil applications;
    Adding ``or 6A002.a.2.b'' in 6A003.b.3;
    Removing the ``or'' at the end of 6A003.b.4.a to clarify the entry;
    Replacing a period with a semi-colon at the end of 6A003.b.4.b and
adding an ``or'', as part of the TFEI revisions to correct the
punctuation and make provision for a new sub-paragraph;
    Adding a new sub-paragraph 6A003.b.4.c to control imaging cameras
that incorporate ``focal plane arrays'' specified in 6A002.a.3.g;
    Removing single quotes around the term ``Imaging cameras'' in Note
1 after 6A003.b.4.c to indicate that the term is not defined in the
entry, and adding double quotes around ``signal processing'' in that
Note to indicate that the term is defined in Part 772 of the EAR;
    Replacing the text ``twelve'' with the number ``12'' and replacing
a comma with an ``and'' in Note 2 after 6A003.b.4.c to correct the
punctuation and clarify the entry;
    Removing the word ``characteristics'' from the introductory text of
Note 3 after 6A003.b.4.c to remove a superfluous word as part of the
TFEI revisions;
    Adding single quotes around the term ``Instantaneous-Field-of-View
(IFOV)'' in paragraph b.1 of Note 3 after 6A003.b.4.c to indicate that
this term is defined in the entry;
    Adding single quotes around the term ``direct view'' in paragraph
b.3 of Note 3 after 6A003.b.4.c to indicate that this term is defined
in the entry, and replacing the comma with a semi-colon, as part of the
TFEI revisions to clarify the entry and correct the punctuation;
    Replacing the comma with a semi-colon in paragraphs 4.a and 4.b of
Note 3 after 6A003.b.4.c, as part of the TFEI revision to correct the
punctuation;
    Adding single quotes around the terms ``Instantaneous Field of View
(IFOV),'' ``Horizontal FOV'' and ``Vertical FOV'' in the Technical Note
following Note 3 after 6A003.b.4.c, to indicate that the terms are
defined in the entry;
    Removing the word ``Where'' and replacing the text ``three tons''
with ``3 tonnes'' in paragraph c of Note 3 after 6A003.b.4.c, to
clarify the entry;
    Adding a new exclusion Note 4 to 6A003.b.4.c for `imaging cameras'
to indicate that these items are not controlled in this entry;
    Adding a new subparagraph 3 to paragraph c of Note 4 to
6A003.b.4.c, to add a new parameter ``Not specially designed or
modified for underwater use,'' because this decontrol note is not
intended to apply to underwater cameras that were moved from 8A002.f.2
to 6A003.b.4.c;
    Adding a Note after Note 4 stating ``When necessary, details of the
items will be provided, upon request, to the Bureau of Industry and
Security (BIS) in order to ascertain compliance with the conditions
described in Note 4'' to clarify BIS policy; and
    Adding a new paragraph 6A003.b.5 to control ``Imaging cameras
incorporating solid-state detectors specified by 6A002.a.1.''
    ECCN 6D991 is amended by replacing the reference to 6A002.e with
6A002.a.1.d in the Heading and the RS control paragraph of the License
Requirements section, in order to harmonize with revisions made by this
rule.
    ECCN 6D994 is removed, because the software that is unilaterally
controlled by the United States in this entry is now multilaterally
controlled by the member countries of the Wassenaar Arrangement, and
the control for this

software is added by this rule to 6D003.c.
    ECCN 6E001 is amended by:
    Removing the reference to 6A002.e in the RS control paragraph of
the License Requirements section, because this control is moved to
6A002.a.1.d, which is already controlled under RS:1; and
    Revising the reference to 6A002.e to read 6A002.a.1.d in paragraph
2 of the TSR paragraph of the License Exception section, in order to
harmonize with revisions made by this rule;
    Removing ``technology'' for commodities controlled by 6A002.a.2,
a.3.a, a.3.b, a.3.g, and .c from LE TSR eligibility in paragraph 4 of
the LE TSR paragraph of the License Exception Section. Technology for
these newly added low light level components warrant a higher degree of
control, i.e., no list based license exceptions.
    ECCN 6E002 is amended by:
    Removing the reference to 6A002.e in the RS control paragraph of
the License Requirements section, because this control is moved to
6A002.a.1.d, which is already controlled under RS:1;
    Revising the reference to 6A002.e to read 6A002.a.1.d in the TSR
paragraph of the License Exception section, in order to harmonize with
revisions made by this rule; and
    Removing ``technology'' for commodities controlled by 6A002.a.2,
a.3.a, a.3.b, a.3.g, and .c from LE TSR eligibility in paragraph 4 of
the LE TSR paragraph of the License Exception Section. Technology for
these newly added low light level components warrant a higher degree of
control, i.e., no list based license exceptions.
    ECCN 6E101 is amended by removing the reference to 6A002.e in the
Related Definitions paragraph of the List of Items Controlled section,
in order to harmonize with revisions made by this rule. 6A002.e is
moved by this rule to 6A002.a.1.d. 6A002.a.1 is already referenced in
the Related Definitions of ECCN 6E101.

Category 7--Navigation and Avionics

ECCN 7A003 (Inertial Systems and Specially Designed Components)

    The Heading is corrected by adding the parenthetical phrase ``(see
List of Items Controlled)'' to reference the List of Items Controlled
where controlled equipment is set forth.

ECCN 7A004 (Gyro-Astro Compasses/`Star Trackers')

    The Heading is deleted and replaced with `` `Star trackers' and
components therefor, as follows (see List of Items Controlled).''
``Star trackers'' is synonymous with ``gyro-astro compasses.'' ``Star
trackers'' is, however the more common industry-standard term.
    Two paragraphs are added to the List of Items Controlled section.
Paragraph 7A004.a controls `` `Star trackers' with a specified azimuth
accuracy of equal to or less (better) than 20 seconds of arc throughout
the specified lifetime of the equipment.'' Paragraph 7A004.b is an
introductory paragraph that reads ``Components specially designed for
equipment specified in 7A004.a as follows:'' Subparagraph b.1 controls
``Optical heads or baffles;'' and subparagraph b.2 controls ``Data
processing units.'' A Technical Note is also added to read, `` `star
trackers' are also referred to as stellar attitude sensors or gyro-
astro compasses.'' The star trackers are usually integrated in the
attitude and orbit control systems for spacecraft. Their performance
has a significant influence on the final accuracy of the observation
satellites, as well as for telecommunication satellites for civilian
and military applications. WA determined that the current threshold is
too high to distinguish sensitive observation applications. BIS is
therefore revising the azimuth accuracy from ``equal to or less
(better) than 5 seconds of arc'' to ``20 seconds of arc throughout the
specified lifetime of the equipment.'' WA also determined that the
performance threshold should apply to the full duration of the mission
because the applicable datasheets often refer to beginning of life
(BOL) and the end of life (EOL) performance. Additionally, controls are
added for specially designed components, such as, optical heads,
baffles, and data processing units, which are sensitive, warrant
control, and are now often sold separately.

ECCN 7A005 (Global Navigation Satellite Systems (GNSS) Receiving
Equipment)

    The Heading is corrected by adding the parenthetical phrase ``(see
List of Items Controlled)'' to reference the List of Items Controlled
where controlled equipment is set forth.

ECCN 7D002 (``Source Code'' for the ``Use'' of Any Inertial Navigation
Equipment, Including Inertial Equipment Not Controlled by 7A003 or
7A004, or Attitude and Heading Reference Systems (`AHRS'))

    The Heading and Related Controls paragraph 2 are amended by
replacing the term ``use'' with ``operation or maintenance.'' The
Wassenaar Arrangement is in the process of reviewing ``use'' controls
in the WA Lists and determining which aspects of ``use,'' if any,
warrant control. This amendment is an example of the results of the
``use'' controls review.

ECCN 7D003

    Paragraph d.7 is amended by removing the phrase ``raster type head
up displays or'' because subsequent generations of products have
introduced more advanced display technology, such as liquid crystal
display (LCD) and light emitting diode (LED) technology. These more
sophisticated display technologies do not use raster-scanning.

ECCN 7E004

    Paragraph a.1 ``Airborne automatic direction finding equipment
operating at frequencies exceeding 5 MHz;'' is removed and reserved
because it is redundant. ECCN 7E004 (Other ``technology'') was
established on the Commerce Control List to cover the technology for
items not specified on the List in Category 7. Airborne automatic
direction-finding technology is, however, already covered by ECCNs
7E001 (``development'') and 7E002 (``production'').

Category 8--Marine

ECCN 8A002 (Marine Systems, Equipment and Components)

    The Related Control Note is revised to add a reference to 6A003 for
cameras controls that are being moved from 8A002.f to 6A003.b.
    Paragraph 8A002.c is amended by adding the word ``pressure'' in
front of ``hull penetrators'' and removing the words ``or connectors''.
This revision decontrols items commonly used for civil applications
such as those in the oil and gas industry for exploration. The
controls, however, remain in effect for equipment with military
significance. WA determined that the crucial aspects of this control in
terms of military utility are the ability to penetrate a hull at depth
while maintaining hull integrity, which is not a function of
connectors. This determination is reinforced with the term ``pressure
hull'' and makes it clear that the control relates only to
submersibles.
    Paragraph 8A002.f is removed and reserved to move all underwater
camera controls, other than those for television and film-based
photographic still cameras, from Category 8 to Category 6.
Specifically, electronic imaging systems specially designed or modified
for underwater use incorporating image intensifier tubes specified by
6A002.a.2.a or 6A002.a.2.b are now controlled under 6A003.b.3; and
electronic imaging systems specially designed or modified for
underwater

use incorporating ``focal plane arrays'' specified by 6A002.a.3.g are
now controlled under 6A003.b.4.c.

Category 9--Aerospace and Propulsion

ECCN 9A012 (Non-Military ``Unmanned Aerial Vehicles,'' (``UAVs''))

    The Heading and paragraphs a., b.1, b.2, b.3, and b.4 are amended
by adding ``unmanned ``airships'' '', because of WA concerns over high-
altitude airships using combustion engines.
    The Note to 9A012 is amended by adding the phrase ``or model
``airships'' '' to make sure such items are not included in the control
of this entry.

ECCN 9D004

    Paragraph 9D004.d, including its Note, (``Software'' in ``source
code'', ``object code'' or machine code, required for the ``use'' of
active compensating systems for rotor blade tip clearance control) is
removed and reserved. The Wassenaar Arrangement is in the process of
reviewing ``use'' controls in the WA Lists and determining which
aspects of ``use,'' if any, warrant control. This and similar
amendments described below are examples of the results of this review.
    Paragraph 9D004.e is amended by replacing ``use'' with
``operation.'' As noted above, the Wassenaar Arrangement is in the
process of reviewing ``use'' controls in the WA Lists and determining
which aspects of ``use'', if any, warrant control.
    Category 9, Product Group E is amended by revising the Note to
remove the phrase ``as ``use'' ``technology'' '' and removing the
phrase ``rebuild and''. As noted above, the Wassenaar Arrangement is in
the process of reviewing ``use'' controls in the WA Lists and
determining which aspects of ``use,'' if any, warrant control.

ECCN 9E003

    Paragraph a.2 is simplified by cascading the parameters. The
parameter ``average burner outlet temperature'' is replaced by
``combustor exit temperature'' because the parameter was too general
and often misunderstood. Therefore, the parameter is replaced by an
industry-standard `combustor exit temperature' phrase in paragraph
a.2.a in association with thermally decoupled liners. In addition, a
new parameter is added in a.2.d for ``Liners designed to operate at
'combustor exit temperature' exceeding 1,883K (1,610 [deg]C) and having
holes that meet the parameters specified by 9E003.c.'' A Technical Note
is added to define `combustor exit temperature.' A note is added to
limit the ``required'' technology for holes controlled in 9E003.a.2 to
``the derivation of the geometry and location of the holes.'' Lastly, a
Nota Bene is added to reference 9E003.c for technology required to
manufacture cooling holes.
    The parameters defined in 9E003.c (i.e., hole drilling in gas
turbine engine components) are specific to round holes of unvarying
diameter. Cooling holes in gas turbine engine components can have oval,
rectangular, or other shapes, and may vary in size as a function of
depth. This rule introduces in paragraph c.1.a a new parameter, `Cross-
Sectional Area (CSA)' to implement WA's recognition of the need to
adapt the control parameters to account for non-circular holes. The
chosen approach replaces the linear measurement of diameter, which is
specific to circles, with the CSA. This CSA is defined in Technical
Note 1 to 9E003.c as ``the area of the hole in the plane perpendicular
to the hole axis.'' For a circle, the CSA is [pi]R\2\ or [pi](D/2)\2\,
where [pi] is the value 3.1416, R is the hole radius, and D is the hole
diameter. For other hole shapes, the CSA can be calculated through
geometry. CSA is well-known to the component designer because it is
critical to determining cooling flow. By using CSA, a new ratio, the
Hole Shape Ratio (HSR), is established.
    Paragraph c.1.b introduces this new ``hole shape ratio'' (HSR)
parameter to the ECCN. It accounts for holes of varying shapes and
profiles, yet maintains the scope of control for circular holes. The
HSR is defined in Technical Note 2 to 9E003.c as, ``the nominal length
of the axis of the hole divided by the square root of its minimum
`cross-sectional area.' '' The square root of CSA is used so that the
ratio is unit-less. The HSR increases with smaller hole CSA, or greater
depth.

Section 734.4 De Minimis U.S. Content

    This rule revises paragraph (a)(1) by changing the Adjusted Peak
Performance (APP) level from 1.5 Weighted TeraFLOPS (WT) to 3.0 WT. The
effect will be that there is no de minimis level for the export from a
foreign country of a foreign made computer with an APP exceeding 3.0 WT
containing U.S.-origin controlled semiconductors (other than memory
circuits) classified under ECCN 3A001 to Computer Tier 3 countries.

Section 738.3 Commerce Country Chart Structure

    This rule revises paragraph (a)(1) by adding:
     5A001.i,
     5D001 (as it applies to 5A001.i or 5E001.a (as it applies
to 5A001.i or 5D001.a (as it applies to 5A001.i))), and
     5E001.a (as it applies to 5A001.i or 5D001.a (as it
applies to 5A001.i)).

The result of this revision is that a license is required for all
destinations for these items and that there is no license exception
availability for 5E001.a (as it applies to 5A001.i or 5D001.a (as it
applies to 5A001.i)). However, if the item is consigned to and for the
official use of an agency of the U.S. Government (see Sec.
740.2(a)(3)), License Exception GOV may apply for 5A001.i and 5D001 (as
it applies to 5A001.i or 5E001.a (as it applies to 5A001.i or 5D001.a
(as it applies to 5A001.i))).

Section 740.2 Restrictions on all License Exceptions

    Paragraph (a)(3) is amended by adding:
     5A001.i,
     5D001 (as it applies to 5A001.i or 5E001.a (as it applies
to 5A001.i or 5D001.a (as it applies to 5A001.i))), and
     5E001.a (as it applies to 5A001.i or 5D001.a (as it
applies to 5A001.i)).

The result of this revision is that a license is required for all
destinations for these items and that there is no license exception
availability for 5E001.a (as it applies to 5A001.i or 5D001.a (as it
applies to 5A001.i)). However, if the item is consigned to and for the
official use of an agency of the U.S. Government (see Sec.
740.2(a)(3)), License Exception GOV may apply for 5A001.i and 5D001 (as
it applies to 5A001.i or 5E001.a (as it applies to 5A001.i or 5D001.a
(as it applies to 5A001.i))). In addition, the rule adds a sentence to
explain that no license exceptions apply for 5E001.a (as it applies to
5A001.i, or 5D001.a (as it applies to 5A001.i)).
    Paragraph (a)(7), ``space qualified'' items, is amended by changing
the three references to 6A002.e to 6A002.a.1, because 6A002.e was moved
to 6A002.a.1.d and all the subparagraphs of 6A002.a.1 are ``space
qualified'' solid-state detectors. Therefore, no license exception may
be used for any commodities controlled under 6A002.a.1.

Section 740.7 License Exception APP

    Paragraph (c)(3)(ii) is amended by raising the ``Adjusted Peak
Performance'' (APP) from 1.5 to 25 Weighted TeraFLOPS (WT). This will
raise the License Exception ``APP'' eligibility level for deemed
exports of ``technology'' and ``source code'' ``software'' for the
``development'' and

``production'' of computers to foreign nationals of Computer Tier 1
destinations (see Section 740.7(c)(1) for a listing of Computer Tier 1
destinations), except for the subgroup of countries listed in paragraph
(c)(3)(i) that already have an unlimited APP eligibility level.
Technological advances in computer technology have made it necessary to
raise APP eligibility level.
    Paragraph (c)(3)(iii) is amended by raising the ``Adjusted Peak
Performance'' (APP) from 3 to 120 Weighted TeraFLOPS (WT). This will
raise the License Exception ``APP'' eligibility level for deemed
exports of ``technology'' and ``source code'' ``software'' for the
``use'' of computers to foreign nationals of Computer Tier 1
destinations (see Section 740.7(c)(1) for a listing of Computer Tier 1
destinations), except for the subgroup of countries listed in paragraph
(c)(3)(i) that have an unlimited APP eligibility level. Technological
advances in computer technology have made it necessary to raise APP
eligibility level.
    Paragraph (d)(3)(i) is amended by raising the ``Adjusted Peak
Performance'' (APP) from 0.5 to 12 Weighted TeraFLOPS (WT). This will
raise the License Exception ``APP'' eligibility level for deemed
exports of ``technology'' and ``source code'' ``software'' for the
``development'' and ``production'' of computers to foreign nationals of
Computer Tier 3 destinations (see Section 740.7(d)(1) for a listing of
Computer Tier 3 destinations). This eligibility is subject to the
restrictions in Section 740.7(b) and a Foreign National Review
requirement in Section 740.7(d)(4). Technological advances in computer
technology have made it necessary to raise APP eligibility level.
    Paragraph (d)(3)(ii) is amended by raising the ``Adjusted Peak
Performance'' (APP) from 0.75 to 25 Weighted TeraFLOPS (WT). This will
raise the License Exception ``APP'' eligibility level for deemed
exports of ``technology'' and ``source code'' ``software'' for the
``use'' of computers to foreign nationals of Computer Tier 3
destinations (see Section 740.7(d)(1) for a listing of Computer Tier 3
destinations). This eligibility is subject to the restrictions in
Section 740.7(b) and a Foreign National Review requirement in Section
740.7(d)(4). Advances in computer technology have made it necessary to
raise APP eligibility level.

License Exception GOV 740.11 Supplement No. 1 to Section 740.11

    Introductory paragraph (a)(1) is amended by adding the phrase
``systems or transmitting and receiving arrays, designed for'' and
removing the word ``systems'' in the description for ECCN
6A001.a.1.b.1. This revision harmonizes it with the revisions made to
6A001.a.1.b described in the preamble.

Section 740.16 Additional Permissive Reexports (APR)

    This rule limits use of License Exception APR for cameras described
in ECCN 6A003.b.3 (having the characteristics listed in 6A002.a.2.a or
a.2.b), 6A003.b.4.c, or components described in 6A002.a.2.a, a.2.b,
a.2.c, a.3.b.2.b, or a.3.g by making such cameras and components
ineligible for reexport under paragraph (a)(2) of License Exception
APR--``reexports from Country Group A:1 and cooperating countries'' and
under paragraph (b)(2) for reexports to and among Country Group A:1 and
cooperating countries.
    However, paragraph (b)(3) provides for allowances from the
exclusions listed in (b)(2) for reexports to among countries listed in
(b)(3) under specified circumstances. Paragraph (b)(3) is amended to
add cameras described in ECCN 6A003.b.3 (having the characteristics
listed in 6A002.a.2.a or a.2.b) and 6A003.b.4.c.

Section 740.20 License Exception Strategic Trade Authorization (STA)

    Section 740.20 is amended by adding paragraph (b)(2)(ix) to remove
low light level components and related ``technology'' from License
Exception STA eligibility. The new paragraph reads, ``License Exception
STA may not be used for any commodity controlled by ECCNs 6A002.a.2,
a.3.a, a.3.b, a.3.g or .c, or any related ``technology'' controlled by
6E001 or 6E002.''

Section 742.6 Regional Stability

    Paragraph (a)(1) is amended by removing all references (four
references) to 6A002.e, because this paragraph was moved to
6A002.a.1.d. In addition, paragraph 6A003.b.4.c is added to paragraph
(a)(1), because this new paragraph is controlled for RS:1 reasons. ECCN
6D994 is removed from paragraph (a)(1), because this ECCN is removed
from the CCL (see explanation for 6D994 above).

Section 742.13 Communications Intercepting Devices; Software and
Technology for Communications Intercepting Devices

    Paragraph (a)(1) is amended by adding 5A001.i, 5D001.a
(``software'' for the ``production'' or ``development'' of 5A001.i
equipment, functions or features), 5D001.b (``software'' to support
5E001.a ``technology'' for 5A001.i equipment or certain 5D001.a
``software''), 5D001.c (``software'' to provide characteristics,
functions or features of 5A001.i equipment), and 5E001.a
(``technology'' for the ``production'' or ``development'' of 5A001.i
equipment or certain 5D001.a ``software'') to add license requirements
for surreptitious listening (SL) reasons to all destinations, including
Canada, and to apply the license policy set forth in this section to
these items. License applications will generally be denied to embargoed
destinations and to any end-user, except a provider of wire or
electronic communication services or an officer, agent, or employee of,
or person under contract with such a provider, in the normal course of
the business of providing that wire or electronic communication
service; or an officer, agent, or employee of, or a person under
contract with, the United States, one of the 50 States, or a political
subdivision thereof, when engaged in the normal course of government
activities.

Part 743 Special Reporting

    WA has three levels of controls as reflected in its Basic List
(BL), Sensitive List (SL), and Very Sensitive List (VSL). BIS makes
items on the WA BL and SL eligible for license exceptions. Because of
the U.S. obligations under its agreements to the WA, the United States
must report on SL items exported outside of the WA membership
countries. BIS does this by gathering data from its licensing database.
To collect data on exports made under license exceptions, BIS requires
WA reporting on SL items exported (excluding deemed exports) under
License Exceptions GBS, CIV, TSR, LVS, APP, STA, and portions of GOV.
As a result of WA making changes to its SL, this rule makes
corresponding changes to the reporting requirements of section 743.1 of
the EAR.
    Paragraph 743.1(c)(1)(iii) is amended by removing references to
3B001.a.2 (Metal Organic Chemical Vapor Deposition (MOCVD) reactors).
WA agreed to remove MOCVD reactors from the WA Sensitive List because
such equipment has become common and is not of any particular strategic
importance.
    With the addition of License Exception STA, many more Category 6
entries have become eligible for export via license exception and are
therefore subject to WA reporting requirements. Therefore, many ECCNs
are added to Section 743.1(c)(1)(vi). Some added entries are not
eligible themselves for license exception, but are added for reference
because the technology for

these ECCNs is eligible for license exception under ECCNs 6E001 and
6E002. In addition, the Notes to Section 743.1(c)(1)(vi) are reinserted
and revised to harmonize with the WA Sensitive List. These Notes were
inadvertently removed by the May 20, 2011 Wassenaar rule (76 FR 29619).
    As a result of the changes described above, this rule adds the Note
``License Requirement Notes: See Sec.  743.1 of the EAR for reporting
requirements for exports under License Exceptions.'' to the end of the
License Requirements sections of ECCNs 6A003 and 6B008.
    As a result of the change to the control level of computers in ECCN
4A003.b, this rule revises the APP from 1.5 WT to 3.0 WT in Sec.
743.2(b) for Computer Tier 3 countries. Exporters must file post-
shipment reports and keep records in accordance with recordkeeping
requirements in Part 762 for high performance computer exports to
destinations in Computer Tier 3, as well as exports of commodities used
to enhance computers previously exported or reexported to a Computer
Tier 3 destination, where the ``Adjusted Peak Performance'' (``APP'')
is greater than 3.0 Weighted TeraFLOPS (WT).
    Supplement No. 1 to Part 743 is amended by adding Mexico as the
41st Participating State in the WA. This addition became effective on
January 25, 2012, upon Mexico's completion of the necessary procedures
for joining the WA and WA's approval of Mexico's application to be a
Participating State in the WA.

Section 744.9 Restriction on Certain Exports and Reexports of Cameras
Controlled by ECCN 6A003.b.4.b

    Section 744.9 is amended by adding ECCNs 6A003.b.3 and 6A003.b.4.c
to the Title of Section 744.9, the introductory text of paragraph (a)
and in the first sentence of paragraph (b). This will impose a license
requirement to all destinations except Canada if at the time of export
or reexport, the exporter or reexporter knows or is informed that the
item will be or is intended to be: Used by a ``military end user,'' as
defined in paragraph (d) of this section; or incorporated into a
``military commodity'' controlled by ECCN 0A919. Applications for
licenses required by this section will be reviewed by applying the
policies that would be applied under the International Traffic in Arms
Regulations (22 CFR parts 120-130). Shipments subject to the
prohibitions in this section that are consigned to and for the official
use of the U.S. Government authorized pursuant to Section
740.11(b)(2)(ii) of the EAR may be made under License Exception GOV. No
other license exceptions apply to the prohibitions described in
paragraphs (a) and (b) of this section.

Section 746.7 Iran

    Paragraph (a) is amended to add license requirements for exports
and reexports to Iran of 5A001.i, 5D001 (for 5A001.i or for 5E001.a
(for 5A001.i, or for 5D001.a (for 5A001.i))) and 5E001.a (for 5A001.i,
or for 5D001.a (for 5A001.i)). Licenses will generally be denied for
such items and no license exceptions may be used to overcome this
license requirement.

Supplement No. 7 to Part 748 VEU List

    Supplement No. 7 to Part 748 is amended by removing the citation
``3B001.d'' from the ``Eligible Items (by ECCN)'' column for the
following six entities: Applied Materials (China), Inc, Applied
Materials (Xi'an) Ltd., Grace Semiconductor Manufacturing Corporation,
Hynix Semiconductor China Ltd, Hynix Semiconductor (Wuxi) Ltd,
Semiconductor Manufacturing International Corporation. The reason for
the removal of 3B001.d is explained above under ECCN 3B001.

Section 752.3 Eligible Items

    Paragraph (a)(7) is amended by adding 5A001.i, 5D001.a (for
5A001.i), 5D001.b (to support 5E001.a ``technology'' for 5A001.i
equipment or certain 5D001.a ``software''), 5D001.c (for 5A001.i), and
5E001.a (for 5A001.i equipment or certain 5D001.a ``software'') to the
list of items ineligible for Special Comprehensive Licenses.

Section 770.2 Item Interpretations

    Paragraph (l)(1) ``Interpretation 12: Computers'' is amended by
removing two references to 4A003.a. Paragraph 4A003.a (fault tolerance)
is removed by this rule.

Section 772.1 Definitions of Terms as Used in the Export Administration
Regulations (EAR)

    The term ``airship'' is added to Section 772.1, which is used in
Category 9, as well as its definition, ``A power-driven airborne
vehicle that is kept buoyant by a body of gas (usually helium, formerly
hydrogen) which is lighter than air.'' The preamble paragraph
concerning ECCN 9A012 amendments contains an explanation for this
change.
    The definition (calculation) for ``Average Output Power,'' as used
in Category 6, is amended by replacing ``* * * laser duration in
seconds.'' with the following:

    ``* * * period over which a series of consecutive pulses is
emitted, in seconds. For a series of uniformly spaced pulses it is
equal to the total ``laser'' output energy in a single pulse, in
joules, multiplied by the pulse frequency of the ``laser'', in
Hertz.''

The removal of ``laser duration'' from the definition of ``peak power''
would mean that the only remaining place where ``laser duration'' is
used is in the definition of ``average output power.'' Therefore, the
term ``laser duration'' is removed and the definition of ``laser
duration'' is incorporated into the definition of ``average output
power.''
    The terms ``common channel signaling,'' ``fault tolerance,'' and
``laser duration'' are removed consistent with changes to the entries
that used these terms. The preamble paragraph concerning ECCN 5E001.c.5
provides an explanation regarding the deletion of the term ``common
channel signaling.'' The preamble paragraph for ECCN 4A003.a contains
an explanation regarding the deletion of the term ``fault tolerance.''
The term ``laser duration'' was used in the definitions of ``average
output power'' and ``peak power.'' As a result the term ``laser
duration'' is no longer needed.
    The definition of ``peak power,'' used in Category 6, is revised by
removing ``level of'' and ``laser duration.'' The definition now is,
``The highest power attained in the `pulse duration.' '' The change
within the ``Peak power'' definition from ``laser duration'' to ``pulse
duration'' removes ambiguity by making the definition pulse specific.
    The definition for ``positioning accuracy,'' used in Category 2 is
removed. The position accuracy for all machine tools is determined
using only the ISO 230/2 (2006). Also see the Technical Notes
concerning `stated position accuracy' set forth in Category 2 at the
beginning of Product Group B. BIS, with the support of DOE, made these
changes to use only one standard ``ISO 230/2 (2006)'' to determine
``positioning accuracy'' for all machine tools controlled by the EAR in
order to streamline export compliance.
    The definition for ``pulse duration,'' used in Category 6, is
amended by replacing the phrase ``measured at Full Width Half Intensity
(FWHI) levels'' with the phrase ``is the time between the half-power
points on the leading edge and trailing edge of an individual pulse.''
The definition for ``pulse duration'' is revised because ``Full Width
Half Intensity'' is not typically used by industry. The leading and
trailing edge of laser pulses are fundamental characteristics and where
the half-power points are easily identified.

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as
amended, has been in lapse. However, the President, through Executive
Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which
has been extended by successive Presidential Notices, the most recent
being that of Notice of August 12, 2011, 76 FR 50661 (August 16, 2011)
has continued the EAR in effect under the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.).

Saving Clause

    Shipments of items removed from license exception eligibility or
eligibility for export without a license as a result of this regulatory
action that were on dock for loading, on lighter, laden aboard an
exporting carrier, or en route aboard a carrier to a port of export, on
July 2, 2012, pursuant to actual orders for export to a foreign
destination, may proceed to that destination under the previous license
exception eligibility or without a license so long as they have been
exported from the United States before August 31, 2012. Any such items
not actually exported before midnight, on August 31, 2012, require a
license in accordance with this regulation.

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, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated to be a ``significant
regulatory action'' although not economically significant, under
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget.
    2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person 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
involves two collections of information subject to the PRA. One of the
collections has been approved by OMB under control number 0694-0088,
``Multi-Purpose Application,'' and carries a burden hour estimate of 58
minutes for a manual or electronic submission. The other of the
collections has been approved by OMB under control number 0694-0106,
``Reporting and Recordkeeping Requirements under the Wassenaar
Arrangement,'' and carries a burden hour estimate of 21 minutes for a
manual or electronic submission. Send comments regarding these burden
estimates or any other aspect of these collections of information,
including suggestions for reducing the burden, to OMB Desk Officer, New
Executive Office Building, Washington, DC 20503; and to Jasmeet Seehra,
OMB Desk Officer, by email at<EMAIL_ADDRESS>or by fax
to<PHONE_NUMBER>; and to the Office of Administration, Bureau of
Industry and Security, Department of Commerce, 14th and Pennsylvania
Avenue NW., Room 6622, Washington, DC 20230.
    3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military and foreign affairs
function of the United States (5 U.S.C. 553(a)(1)). Immediate
implementation of these amendments fulfills the United States'
international obligation to the Wassenaar Arrangement on Export
Controls for Conventional Arms and Dual-Use Goods and Technologies. The
Wassenaar Arrangement contributes to international security and
regional stability by promoting greater responsibility in transfers of
conventional arms and dual use goods and technologies, thus preventing
destabilizing accumulations of such items. The Wassenaar Arrangement
consists of 41 member countries that act on a consensus basis and the
changes set forth in this rule implement agreements reached at the
December 2011 plenary session of the WA. Since the United States is a
significant exporter of the items in this rule, implementation of this
provision is necessary for the WA to achieve its purpose. Any delay in
implementation will create a disruption in the movement of affected
items globally because of disharmony between export control measures
implemented by WA members, resulting in tension between member
countries. Export controls work best when all countries implement the
same export controls in a timely manner. If this rulemaking were
delayed to allow for notice and comment and a 30 day delay in
effectiveness, it would prevent the United States from fulfilling its
commitment to the WA in a timely manner and would injure the
credibility of the United States in this and other multilateral
regimes.
    Further, no other law requires that a notice of proposed rulemaking
and an opportunity for public comment be given for this final rule.
Because a notice of proposed rulemaking and an opportunity for public
comment are not required to be given for this rule under the
Administrative Procedure Act or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Therefore, this regulation is issued in final form.
Although there is no formal comment period, public comments on this
regulation are welcome on a continuing basis. Comments should be
submitted to Sharron Cook, Office of Exporter Services, Bureau of
Industry and Security, Department of Commerce, 14th and Pennsylvania
Ave. NW., Room 2099, Washington, DC 20230.

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 752

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping
requirements.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Parts 746 and 774

    Exports, Reporting and recordkeeping requirements.

15 CFR Parts 770 and 772

    Exports.

    Accordingly, Parts 734, 738, 740, 742, 743, 744, 746, 748, 752,
770, 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 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 August 12, 2011, 76 FR 50661 (August 16, 2011);
Notice of November 9, 2011, 76 FR 70319 (November 10, 2011).

0
2. Section 734.4 is amended by removing ``1.5'' and adding in its place
``3.0'' in paragraph (a)(1).

PART 738--[AMENDED]

0
3. The authority citation for 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 12, 2011, 76 FR 50661 (August 16, 2011).

0
4. Section 738.3 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  738.3  Commerce Country Chart structure.

    (a) * * *
    (1) ECCNs 0A983, 5A001.i, 5A980, 5D001 (for 5A001.i, or for 5E001.a
(for 5A001.i or for 5D001.a (for 5A001.i))), 5D980, 5E001.a (for
5A001.i, or for 5D001.a (for 5A001.i)) and 5E980. A license is required
for all destinations for items controlled under these entries. For
items controlled by 0A983, 5E001.a (for 5A001.i, or for 5D001.a (for
5A001.i)) and 5E980, no license exceptions apply. For items controlled
by 5A001.i, 5A980, 5D001 (for 5A001.i or for 5E001.a (for 5A001.i, or
for 5D001.a (for 5A001.i))) and 5D980, License Exception GOV may apply
if your item is consigned to and for the official use of an agency of
the U.S. Government (see Sec.  740.2(a)(3)). If your item is controlled
by 0A983, 5A001.i, 5A980, 5D001 (for 5A001.i or for 5E001.a (for
5A001.i, or for 5D001.a (for 5A001.i))), 5D980, 5E001.a (for 5A001.i,
or for 5D001.a (for 5A001.i)) or 5E980 you should proceed directly to
Part 748 of the EAR for license application instructions and Sec. Sec.
742.11 or 742.13 of the EAR for information on the licensing policy
relevant to these types of applications.
* * * * *

PART 740--[AMENDED]

0
5. The authority citation for 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 12, 2011, 76 FR 50661 (August 16, 2011).

0
6. Section 740.2 is amended by revising paragraphs (a)(3) and (a)(7) to
read as follows:

Sec.  740.2  Restrictions on all license exceptions.

    (a) * * *
    (3) The item is primarily useful for surreptitious interception of
wire, oral, or electronic communications, or related software,
controlled under ECCNs 5A001.i, 5A980, 5D001 (for 5A001.i or for
5E001.a (for 5A001.i, or for 5D001.a (for 5A001.i))), or 5D980, unless
the item is consigned to and for the official use of an agency of the
U.S. Government (see Sec.  740.11(b)(2)(ii) of this part, Governments
(GOV)). No license exceptions apply for 5E001.a (for 5A001.i, or for
5D001.a (for 5A001.i)) or for 5E980.
* * * * *
    (7) ``Space qualified'' items. Commodities defined in 3A001.b.8
(Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 6A002.a.1,
6A008.j.1, or 6A998.b; ``software'' for commodities defined in
3A001.b.8 (Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz),
6A002.a.1, 6A008.j.1, or 6A998.b and controlled under ECCNs 3D001
(Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 6D001,
6D002, 6D991; and ``technology'' for commodities defined in ECCNs
3A001.b.8 (Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz),
6A002.a.1, 6A008.j.1, or 6A998.b and controlled under ECCNs 3E001,
6E001, 6E002, 6E101, 6E991.
* * * * *

Sec.  740.7 [Amended]

0
7. Section 740.7 is amended by:
0
a. Removing the phrase ``APP less than or equal to 1.5 Weighted
TeraFLOPS (WT)'' and adding in its place ``APP less than or equal to 25
Weighted TeraFLOPS (WT)'' in paragraph (c)(3)(ii);
0
b. Removing the phrase ``with an APP less than or equal to 3 WT are
eligible'' and adding in its place ``with an APP less than or equal to
120 WT are eligible'' in paragraph (c)(3)(iii);
0
c. Removing the phrase ``with a APP less than or equal to 0.5 Weighted
TeraFLOPs (WT)'' and adding in its place ``with an APP less than or
equal to 12 Weighted TeraFLOPs (WT)'' in paragraph (d)(3)(i); and
0
d. Removing the phrase ``with an APP less than or equal to 0.75 WT are
eligible'' and adding in its place ``with an APP less than or equal to
25 WT are eligible'' in paragraph (d)(3)(ii).

0
8. Supplement No. 1 to Sec.  740.11 is amended by revising the
introductory text of paragraph (a)(1) to read as follows:

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

* * * * *

Supplement No. 1 to Sec.  740.11--Additional Restrictions on use of
License Exception GOV

    (a) * * *
    (1) Items identified on the Commerce Control List as controlled
for national security (NS) reasons under Export Control
Classification Numbers (ECCNs) as follows for export or reexport to
destinations other than Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Spain, Sweden, or the United Kingdom: 1C001,
5A001.b.5, 5A001.h, 6A001.a.1.b.1 systems or transmitting and
receiving arrays, designed for object detection and location, having
a sound pressure level exceeding 210 dB (reference 1 [micro]Pa at 1
m) and an operating frequency in the band from 30 Hz to 2 kHz
inclusive, 6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3,
6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.e, 6A002.a.1.c,
6B008, 8A001.b, 8A001.d, 8A002.o.3.b; and
* * * * *

0
9. Section 740.16 is amended by revising paragraphs (a)(2) and (b)(2),
and the introductory text of paragraph (b)(3), to read as follows:

Sec.  740.16  Additional permissive reexports (APR).

    (a) * * *
    (2) The commodities being reexported are not controlled for NP, CB,
MT, SI or CC reasons and are not military commodities described in ECCN
0A919 or cameras described in ECCN 6A003.b.3 (having the
characteristics listed in 6A002.a.2.a or a.2.b), 6A003.b.4.b,
6A003.b.4.c, or components described in 6A002.a.2.a, a.2.b, a.2.c,
a.3.b.2.b, or a.3.g; and
* * * * *
    (b) * * *
    (2) Except as provided in paragraph (b)(3) of this section, cameras
described in ECCN 6A003.b.3 (having the characteristics listed in
6A002.a.2.a or

a.2.b), 6A003.b.4.b, 6A003.b.4.c, or components described in
6A002.a.2.a, a.2.b, a.2.c, a.3.b.2.b, or a.3.g, and ``military
commodities'' described in ECCN 0A919 may not be exported under this
paragraph (b).
    (3) Cameras described in ECCN 6A003.b.3 (having the characteristics
listed in 6A002.a.2.a or a.2.b), 6A003.b.4.b, or 6A003.b.4.c may be
exported or reexported to and among: Albania, Australia, Austria,
Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland,
Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, the Netherlands,
New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia,
South Africa, South Korea, Spain, Sweden, Switzerland, Turkey, and the
United Kingdom if:
* * * * *

0
10. Section 740.20 is amended by adding paragraph (b)(2)(ix), to read
as follows:

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

* * * * *
    (b) * * *
    (2) * * *
    (ix) License Exception STA may not be used for any commodity
controlled by ECCNs 6A002.a.2, a.3.a, a.3.b, a.3.g or .c, or any
related ``technology'' controlled by 6E001 or 6E002.
* * * * *

PART 742--[AMENDED]

0
11. The authority citation for part 742 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Notice of August 12, 2011, 76 FR 50661 (August 16, 2011); Notice of
November 9, 2011, 76 FR 70319 (November 10, 2011).

0
12. Section 742.6 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  742.6  Regional stability.

    (a) * * *
    (1) RS Column 1 License Requirements in General. As indicated in
the CCL and in RS column 1 of the Commerce Country Chart (see
Supplement No. 1 to part 738 of the EAR), a license is required to all
destinations, except Canada, for items described on the CCL under ECCNs
3A982; 3D982; 3E982; 6A002.a.1, a.2, a.3, or .c; 6A003.b.3, b.4.a, and
b.4.c; 6A008.j.1; 6A998.b; 6D001 (only ``software'' for the
``development'' or ``production'' of items in 6A002.a.1, a.2, a.3, .c;
6A003.b.3 and .b.4; or 6A008.j.1); 6D002 (only ``software'' for the
``use'' of items in 6A002.a.1, a.2, a.3, .c; 6A003.b.3 and .b.4; or
6A008.j.1); 6D003.c; 6D991 (only ``software'' for the ``development,''
``production,'' or ``use'' of equipment controlled by 6A002.a.1.d or
6A998.b); 6E001 (only ``technology'' for ``development'' of items in
6A002.a.1, a.2, a.3 (except 6A002.a.3.d.2.a and 6A002.a.3.e for lead
selenide focal plane arrays), and .c, 6A003.b.3 and b.4, or 6A008.j.1);
6E002 (only ``technology'' for ``production'' of items in 6A002.a.1,
a.2, a.3, or .c, 6A003.b.3 or b.4, or 6A008.j.1); 6E991 (only
``technology'' for the ``development,'' ``production,'' or ``use'' of
equipment controlled by 6A998.b); 7A994 (only QRS11 00100 100/101 and
QRS11 0050 443/569 Micromachined Angular Rate Sensors); 7D001 (only
``software'' for ``development'' or ``production'' of items in 7A001,
7A002, or 7A003); 7E001 (only ``technology'' for the ``development'' of
inertial navigation systems, inertial equipment, and specially designed
components therefor for civil aircraft); 7E002 (only ``technology'' for
the ``production'' of inertial navigation systems, inertial equipment,
and specially designed components therefor for civil aircraft); 7E101
(only ``technology'' for the ``use'' of inertial navigation systems,
inertial equipment, and specially designed components for civil
aircraft).
* * * * *

0
13. Section 742.13 is amended by revising the section heading and
paragraph (a)(1) to read as follows:

Sec.  742.13  Communications intercepting devices; software and
technology for communications intercepting devices.

    (a) License requirement. (1) In support of U.S. foreign policy to
prohibit the export of items that may be used for the surreptitious
interception of wire, oral, or electronic communications, a license is
required for all destinations, including Canada, for ECCNs having an
``SL'' under the ``Reason for Control'' paragraph. These items include
any electronic, mechanical, or other device primarily useful for the
surreptitious interception of wire, oral, or electronic communications
(ECCNs 5A001.i and 5A980); and for related ``software'' primarily
useful for the surreptitious interception of wire, oral, or electronic
communications (ECCN 5D001.c and 5D980.a); and ``software'' primarily
useful for the ``development'', ``production'', or ``use'' of devices
controlled under ECCNs 5A001.i and 5A980 (ECCNs 5D001.a and 5D980.b);
and for ``technology'' primarily useful for the ``development'',
``production'', or ``use'' of items controlled by ECCNs 5A001.i,
5D001.a (for 5A001.i), 5A980 and 5D980 (ECCNs 5E001.a and 5E980); and
for ``software'' primarily useful to support such ECCN 5E001.a
``development'', ``production'', or ``use'' ``technology'' for 5A001.i
equipment and certain 5D001.a ``software'' (ECCN 5D001.b). These
licensing requirements do not supersede the requirements contained in
the Omnibus Crime Control and Safe Streets Act of 1968, as amended (18
U.S.C. 2512). This license requirement is not reflected on the Commerce
Country Chart (Supplement No. 1 to Part 738 of the EAR).
* * * * *

PART 743--[AMENDED]

0
14. The authority citation for part 743 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2011, 76 FR 50661 (August 16, 2011).

0
15. Section 743.1 is amended by:
0
a. Revising paragraphs (c)(1)(iii) and (c)(1)(vi); and
0
b. Adding Notes for paragraph (c)(1)(vi), to read as follows:

Sec.  743.1  Wassenaar Arrangement.

* * * * *
    (c) * * *
    (1) * * *
    (iii) Category 3: 3A002.g.1, 3D001 for ``development'' or
``production'' of 3A002.g.1, and 3E001 for ``development'' or
``production'' of 3A002.g.1;
* * * * *
    (vi) Category 6: 6A001.a.1.b (changing 10 kHz to 5 kHz and adding
the text ``or a sound pressure level exceeding 224 dB (reference 1
[mu]Pa at 1 m) for equipment with an operating frequency in the band
from 5 kHz to 10 kHz inclusive'' to the existing text in
6A001.a.1.b.1), and 6A001.a.2.d; 6A002.a.1.a, 6A002.a.1.b, 6A002.a.1.c,
6A002.a.1.d, 6A002.a.2.a (changing 350 [mu]A/lm to 700 [mu]A/lm in
6A002.a.2.a.3.a), 6A002.a.2.b, 6A002.a.3, 6A002.b, 6A002.c
(incorporating image intensifier tubes listed in 6A002.a.2.a (having
characteristics described in this paragraph) or 6A002.a.2.b, ``focal
plane arrays'' listed in 6A002.a.3 (having characteristics described in
Note 1 to

this paragraph) or solid-state detectors having the characteristics
listed in 6A002.a.1); 6A003.b.3 (incorporating 6A002.a.2.a (having
characteristics described in this paragraph) or 6A002.a.2.b), 6A003.b.4
(incorporating ``focal plane arrays'' listed in 6A002.a.3 to
6A002.a.3.e, 6A002.a.3.f, or 6A002.a.3.g, having characteristics
described in this paragraph), 6A003.b.5; 6A004.c and d; 6A006.a.1,
6A006.a.2 (having a `sensitivity' lower (better) than 2pT rms per
square root Hz), 6A006.c.1, 6A006.d (certain items only; see Note to
this paragraph), 6A006.e (incorporating magnetometers specified in
6A006.a.1 or 6A006.a.2, as described by this paragraph); 6A008.d, .h,
and .k; 6B008, 6D001 (for 6A004.c and .d, 6A008.d, .h, and .k, and
6B008); 6D003.a; 6E001 (for equipment and software listed in this
paragraph); and 6E002 (for equipment specified by 6A or 6B in this
paragraph);
    Notes to paragraph (c)(1)(vi):

    Note 1: Reports for 6A002.a.3 exclude the following ``focal
plane arrays'':
    a. Platinum Silicide (PiSi) ``focal plane arrays'' having less
than 10,000 elements;
    b. Iridium Silicide (IrSi) ``focal plane arrays'';
    c. Indium Antimonide (InSb) or Lead Selenide (PbSe) ``focal
plane arrays'' having less than 256 elements;
    d. Indium Arsenide (InAs) ``focal plane arrays'';
    e. Lead Sulphide (PbS) ``focal plane arrays'';
    f. Indium Gallium Arsenide (InGaAs) ``focal plane arrays'';
    g. Mercury Cadmium Telluride (HgCdTe) ``focal plane arrays'', as
follows:
    1. `Scanning Arrays' having any of the following:
    a. 30 elements or less; or
    b. Incorporating time delay-and-integration within the element
and having 2 elements or less;
    2. `Staring Arrays' less than 256 elements;

    Technical Notes: `Scanning Arrays' are defined as ``focal plane
arrays'' designed for use with a scanning optical system that images
a scene in a sequential manner to produce an image.
    `Staring Arrays' are defined as ``focal plane arrays'' designed
for use with a non-scanning optical system that images a scene.
    h. Gallium Arsenide (GaAs)or Gallium Aluminum Arsenide (GaAlAs)
quantum well ``focal plane arrays'' having less than 256 elements;
and
    i. Microbolometer ``focal plane arrays'' having less than 8,000
elements.

    Note 2: Reports for 6A002.a.3.g do not apply to:
    a. The linear (1-dimensional) ``focal plane arrays'' specially
designed or modified to achieve `charge multiplication' having 4,096
elements or less; or
    b. The non-linear (2-dimensional) ``focal plane arrays''
specially designed or modified to achieve `charge multiplication'
having a maximum linear dimension of 4,096 elements and a total of
250,000 elements or less.

    Note 3:  Reports for 6A006.d, are for ``compensation systems''
for the following:
    a. Magnetic sensors controlled in 6A006.a.2 using optically
pumped or nuclear precession (proton/Overhauser) ``technology'' that
will permit these sensors to realize a `sensitivity' lower (better)
than 2 pT rms per square root Hz.
    b. Underwater electric field sensors controlled in 6A006.b.
    c. Magnetic gradiometers controlled in 6A006.c that will permit
these sensors to realize a `sensitivity' lower (better) than 3 pT/m
rms per square root Hz.

* * * * *

0
16. Section 743.2 is amended by removing ``1.5'' and adding in its
place ``3.0'' in paragraph (b).

0
17. Supplement No. 1 to part 743 is amended by adding ``Mexico'' in
alphabetic order.

PART 744--[AMENDED]

0
18. The authority citation for part 744 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 12, 2011, 76 FR 50661
(August 16, 2011); Notice of September 21, 2011, 76 FR 59001
(September, 22, 2011); Notice of November 9, 2011, 76 FR 70319
(November 10, 2011); Notice of January 19, 2012, 77 FR 3067 (January
20, 2012).

0
19. Section 744.9 is amended by
0
a. Revising the section heading to read as set forth below; and
0
b. Removing the reference ``ECCN 6A003.b.4.b'' and adding in its place
``ECCNs 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c'' in the introductory
text of paragraph (a) and in the first sentence of paragraph (b).

Sec.  744.9  Restrictions on certain exports and reexports of cameras
controlled by ECCNs 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c.

* * * * *

PART 746--[AMENDED]

0
20. The authority citation for part 746 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 287c; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C.
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR,
1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p. 783;
Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May
16, 2003; Presidential Determination 2007-7 of December 7, 2006, 72
FR 1899 (January 16, 2007); Notice of August 12, 2011, 76 FR 50661
(August 16, 2011).

0
21. Section 746.7 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  746.7  Iran.

* * * * *
    (a) License Requirements--(1) EAR license requirements. A license
is required under the EAR to export or reexport to Iran any item on the
CCL containing a CB Column 1, CB Column 2, CB Column 3, NP Column 1, NP
Column 2, NS Column 1, NS Column 2, MT Column 1, RS Column 1, RS Column
2, CC Column 1, CC Column 2, CC Column 3, AT Column 1 or AT Column 2 in
the Country Chart Column of the License Requirements section of an ECCN
or classified under ECCNs 0A980, 0A982, 0A983, 0A985, 0E982, 1C355,
1C395, 1C980, 1C981, 1C982, 1C983, 1C984, 2A994, 2D994, 2E994, 5A001.i,
5A980, 5D001 (for 5A001.i or for 5E001.a (for 5A001.i, or for 5D001.a
(for 5A001.i))), 5D980, 5E001.a (for 5A001.i, or for 5D001.a (for
5A001.i)) or 5E980.
* * * * *

PART 748--[AMENDED]

0
22. The authority citation for part 748 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 12, 2011, 76
FR 50661 (August 16, 2011).

0
23. Supplement No. 7 to part 748 is amended by removing the citation
``3B001.d'' wherever it appears in the ``Eligible Items (by ECCN)''
column.

PART 752--[AMENDED]

0
24. The authority citation for part 752 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 12, 2011, 76
FR 50661 (August 16, 2011).

0
24a. Section 752.3 is amended by revising paragraph (a)(7) to read as
follows:

Sec.  752.3  Eligible items.

    (a) * * *

    (7) Communications intercepting devices and related software and
technology controlled by ECCNs 5A001.i, 5A980, 5D001 (for 5A001.i or
for 5E001.a (for 5A001.i, or for 5D001.a (for 5A001.i))), 5D980,
5E001.a (for 5A001.i, or for 5D001.a (for 5A001.i)) or 5E980 on the
CCL;
* * * * *

PART 770 [AMENDED]

0
25. The authority citation for part 770 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2011, 76 FR 50661 (August 16, 2011).

0
26. Section 770.2 is amended by revising paragraph (l)(1) to read as
follows:

Sec.  770.2  Item interpretations.

* * * * *
    (l) Interpretation 12: Computers. (1) Digital computers or computer
systems classified under ECCN 4A003.b or .c, that qualify for ``No
License Required'' (NLR) must be evaluated on the basis of Adjusted
Peak Performance (APP) alone, to the exclusion of all other technical
parameters. Digital computers or computer systems classified under ECCN
4A003.b or .c that qualify for License Exception APP must be evaluated
on the basis of APP, to the exclusion of all other technical
parameters, except for ECCN 4A003.e (equipment performing analog-to-
digital conversions exceeding the limits in ECCN 3A001.a.5.a).
Assemblies performing analog-to-digital conversions are evaluated under
Category 3--Electronics, ECCN 3A001.a.5.a.
* * * * *

PART 772--[AMENDED]

0
27. The authority citation for part 772 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
12, 2011, 76 FR 50661 (August 16, 2011).

0
28. Section 772.1 is amended by:
0
a. Adding the definition for ``airship'' in alphabetical order;
0
b. Revising the definition for ``average output power'';
0
c. Removing the definitions for ``common channel signalling'', ``fault
tolerance'', ``laser duration'' and ``positioning accuracy'';
0
d. Revising the definition for ``peak power''; and
0
e. Revising the definition for ``pulse duration'', to read as set forth
below;

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

* * * * *
    ``Airship''. (Cat 9) A power-driven airborne vehicle that is kept
buoyant by a body of gas (usually helium, formerly hydrogen) which is
lighter than air.
* * * * *
    ``Average Output Power.'' (Cat 6) The average output power is the
total ``laser'' output energy, in joules, divided by the period over
which a series of consecutive pulses is emitted, in seconds. For a
series of uniformly spaced pulses it is equal to the total ``laser''
output energy in a single pulse, in joules, multiplied by the pulse
frequency of the ``laser,'' in Hertz.
* * * * *
    ``Peak power''. (Cat 6)--The highest power attained in the ``pulse
duration.''
* * * * *
    ``Pulse duration.'' (Cat 6)--Duration of a ``laser'' pulse is the
time between the half-power points on the leading edge and trailing
edge of an individual pulse.
* * * * *

PART 774--[AMENDED]

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

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; Notice of August 12, 2011, 76 FR 50661 (August 16, 2011).

0
30. Supplement No. 1 to part 774, Category 0, ECCN 0A919 is amended by
revising the RS paragraph in the License Requirements section, and
revising paragraph d. in the Items paragraph of the List of Items
Controlled section, to read as follows:

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

* * * * *
0A919 ``Military commodities'' as follows (see list of items
controlled).

License Requirements

* * * * *

                Control(s)                          Country chart

RS applies to entire entry................  RS Column 1, see Sec.
                                             742.6(a)(3) for license
                                             requirements.
                                * * * * *

* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    d. Incorporate one or more cameras controlled under ECCN
6A003.b.3, .b.4.b, or .b.4.c.
* * * * *

0
31. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1, ECCN 1A004 is amended by adding a Note to introductory
paragraph .a in the Items paragraph 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

* * * * *
Items:

    a. * * *

    Note: 1A004.a includes Powered Air Purifying Respirators (PAPR)
that are designed or modified for defense against agents or
materials, listed in 1A004.a.

* * * * *

0
32. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1, ECCN 1A005 is amended by revising the Heading, the Items
paragraph, and the notes to ECCN 1A005, to read as follows:

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

List of Items Controlled

* * * * *
Items:

    a. Soft body armor not manufactured to military standards or
specifications, or to their equivalents, and specially designed
components therefor;
    b. Hard body armor plates providing ballistic protection equal
to or less than level IIIA (NIJ 0101.06, July 2008) or national
equivalents.

    Notes to ECCN 1A005:
    1. This entry does not control body armor when accompanying its
user for the user's own personal protection.
    2. This entry does not control body armor designed to provide
frontal protection only from both fragment and blast from non-
military explosive devices.
    3. This entry does not apply to body armor designed to provide
protection only from knife, spike, needle or blunt trauma.

0
33. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C006, List of Items Controlled section is amended by
adding a Note to paragraph d. (after paragraph d.4), to read as
follows:

1C006 Fluids and lubricating materials, as follows (see List of
Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    d. * * *

    Note:  1C006.d does not apply to materials specified and
packaged as medical products.

0
34. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C008, the List of Items Controlled section is amended
by revising paragraphs a.4. and f. in the Items paragraph, to read as
follows:

1C008 Non-fluorinated polymeric substances as follows (see List of
Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    a. * * *
    a.4. Aromatic polyetherimides having a `glass transition
temperature (Tg)' exceeding 563 K (290 [deg]C);

    Note: 1C008.a controls the substances in liquid or solid
``fusible'' form, including resin, powder, pellet, film, sheet,
tape, or ribbon.

    N.B.:  For non-``fusible'' aromatic polyimides in film, sheet,
tape, or ribbon form, see ECCN 1A003.

* * * * *
    f. Polybiphenylenethersulphone having a `glass transition
temperature (Tg)' exceeding 563 K (290 [deg]C).

    Technical Note: The `glass transition temperature (Tg)' for
1C008 materials is determined using the method described in ISO
11357-2 (1999) or national equivalents. In addition, for 1C008.a.2
materials, `glass transition temperature (Tg)' is determined on a
PAI test specimen having initially been cured at a minimum
temperature of 310 [deg]C for a minimum of 15 minutes.

0
35. The Annex to Category 1 ``List of Explosives (See ECCNs 1A004 and
1A008)'' is amended by removing and reserving paragraph 32.g.
0
36. Category 2 ``Materials Processing'', Product Group B ``Test,
Inspection and Production Equipment'', the Notes for category 2B are
amended by:
0
a. Removing the Notes for Category 2B;
0
b. Revising the ``Technical Notes for 2B001 to 2B009'', including the
Heading, to read as follows:

B. Test, Inspection and Production Equipment

    Technical Notes for 2B001 to 2B009, 2B201, 2B290 and 2B991 to
2B999:
    1. Secondary parallel contouring axes, (e.g., the w-axis on
horizontal boring mills or a secondary rotary axis the center line
of which is parallel to the primary rotary axis) are not counted in
the total number of contouring axes. Rotary axes need not rotate
over 360[deg]. A rotary axis can be driven by a linear device (e.g.,
a screw or a rack-and-pinion).
    2. The number of axes which can be coordinated simultaneously
for ``contouring control'' is the number of axes along or around
which, during processing of the workpiece, simultaneous and
interrelated motions are performed between the workpiece and a tool.
This does not include any additional axes along or around which
other relative motions within the machine are performed, such as:
    2.a. Wheel-dressing systems in grinding machines;
    2.b. Parallel rotary axes designed for mounting of separate
workpieces;
    2.c. Co-linear rotary axes designed for manipulating the same
workpiece by holding it in a chuck from different ends.
    3. Axis nomenclature shall be in accordance with International
Standard ISO 841, ``Numerical Control Machines--Axis and Motion
Nomenclature''.
    4. A ``tilting spindle'' is counted as a rotary axis.
    5. `Stated positioning accuracy' derived from measurements made
according to ISO 230/2 (2006) may be used for each specific machine
model as an alternative to individual machine tests. `Stated
positioning accuracy' means the accuracy value provided to BIS as
representative of the accuracy of a specific machine model.

    Note to paragraph 5:  Determination of `Stated Positioning
Accuracy':
    a. Select five machines of a model to be evaluated;
    b. Measure the linear axis accuracies according to ISO 230/2
(2006);
    c. Determine the A-values for each axis of each machine. The
method of calculating the A-value is described in the ISO standard;
    d. Determine the mean value of the A-value of each axis. This
mean value A becomes the stated value of each axis for the model
([Amacr]x [Amacr]y * * *);
    e. Since the Category 2 list refers to each linear axis there
will be as many stated values as there are linear axes;
    f. If any axis of a machine model not controlled by 2B001.a. to
2B001.c. has a stated accuracy [Amacr] of 5 [micro]m for grinding
machines and 6.5 [micro]m for milling and turning machines or
better, the builder should be required to reaffirm the accuracy
level once every eighteen months.

    6. Measurement uncertainty for the positioning accuracy of
machine tools, as defined in the International Standard ISO 230/2
(2006), shall not be considered.

0
37. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 2, ECCN 2B001, the License Requirements Section,
0
a. The Reason for Control table is amended by revising the ``NP''
entry; and
0
b. The items paragraph is amended by:
0
i. Revising paragraphs a.1., b.1.a., b.3. and c.1.a.; and
0
ii. Revising the Notes to 2B001.c, to read as follows:

2B001 Machine tools and any combination thereof, for removing (or
cutting) metals, ceramics or ``composites'', which, according to the
manufacturer's technical specifications, can be equipped with
electronic devices for ``numerical control''; and specially designed
components as follows (see List of Items Controlled).

License Requirements

* * * * *

                Control(s)                          Country chart

                              * * * * * * *
NP applies to 2B001.a, .b, .c, and .d,      NP Column 1.
 EXCEPT: (1) turning machines under
 2B001.a with a capacity no greater than
 35 mm diameter; (2) bar machines
 (Swissturn), limited to machining only
 bar feed through, if maximum bar diameter
 is equal to or less than 42 mm and there
 is no capability of mounting chucks.
 (Machines may have drilling and/or
 milling capabilities for machining parts
 with diameters less than 42 mm); or (3)
 milling machines under 2B001.b with x-
 axis travel greater than two meters and
 overall positioning accuracy according to
 ISO 230/2 (2006) on the x-axis more
 (worse) than 22.5 [mu]m.

                                * * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    a. * * *
    a.1. Positioning accuracy according to ISO 230/2 (2006) with
``all compensations available'' equal to or less (better) than 4.5
[mu]m along one or more linear axis; and
* * * * *
    b. * * *
    b.1. * * *
    b.1.a. Positioning accuracy according to ISO 230/2 (2006) with
``all compensations available'' of less (better) than 4.5 [mu]m
along one or more linear axis; and
* * * * *