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Daily Rules, Proposed Rules, and Notices of the Federal Government

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 740, 772, and 774

[Docket No. 110818512-2136-01]

RIN 0694-AF37

Revisions to the Export Administration Regulations (EAR) To Make the Commerce Control List (CCL) Clearer

AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Proposed rule.
SUMMARY: On December 9, 2010, the Bureau of Industry and Security (BIS) published an advance notice of proposed rulemaking entitledCommerce Control List: Revising Descriptions of Items and Foreign Availabilityas part of the President's Export Control Reform (ECR) Initiative. The December 9, 2010 notice sought, among other things, public comments on how descriptions of items controlled on the Commerce Control List (CCL) could be made clearer. This proposed rule would implement changes identified by BIS and the public that would make the CCL clearer. This rule would only implement changes that can be made to the CCL without requiring changes to multilateral export control regime guidelines or lists. However, BIS has identified changes that would require a decision of a multilateral regime to implement. For those changes, the U.S. Government is developing regime change proposals for consideration by members of those multilateral export control regimes. BIS will implement those changes in separate rulemakings, if approved by the respective multilateral export control regimes.
DATES: Comments must be received by BIS no later than January 28, 2013.
ADDRESSES: * Federal eRulemaking Portal:http://www.regulations.gov.The identification number for this rulemaking is BIS-2012-0044.

* By email directly topubliccomments@bis.doc.gov.Include RIN 0694-AF37 in the subject line.

* By mail or delivery to Regulatory Policy Division, Bureau of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN 0694-AF37.

The Department of Commerce's Plan for Retrospective Analysis of Existing Rules may be found at:http://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.

FOR FURTHER INFORMATION CONTACT: Timothy Mooney or Robert Monjay, Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-2440, Fax: (202) 482-3355, Email:rpd2@bis.doc.gov.
SUPPLEMENTARY INFORMATION Background

On December 9, 2010 (75 FR 76664), the Bureau of Industry and Security (BIS) published an advance notice of proposed rulemaking entitledCommerce Control List: Revising Descriptions of Items and Foreign Availabilityas part of the President's Export Control Reform (ECR) Initiative. The December 9 notice sought, among other things, public comments on how descriptions of items controlled on the Commerce Control List (CCL) could be made clearer. Although these revisions originated with the ECR initiative, this proposed rule is entirely consistent in spirit and substance with Executive Order 13563, under which agencies are to conduct retrospective analyses of their regulations to identify and remedy any unnecessary compliance burden caused by rules that are unduly complex, outmoded, inconsistent, or overlapping. In Executive Order 13563, the President directed each agency to review its “existing significant regulations, and consider how best to promote retrospective analysis of rules that may be outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned.” In response to this directive, Commerce released on August 23, 2011 a plan for the review of its regulations. This proposed rule was identified by the Department as part of its plan for the retrospective analysis of regulations. The Department's plan may be found at:http://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.

This proposed rule would implement changes identified by BIS and the public that would make the CCL clearer. This rule would only implement changes that can be made to the CCL without requiring a multilateral regime change. However, BIS has identified changes that would make the CCL clearer, but would require a multilateral export control regime change to implement. The U.S. Government is developing some of those changes into regime change proposals for consideration by members of those multilateral export control regimes. BIS will implement those changes in separate rulemakings, if approved by the respective multilateral export control regimes.

This proposed rule will identify new phrases or headings within double quotations. The EAR identifies terms defined in part 772 with double quotations as well. Please note that not all of the terms set forth within quotations in this proposed rule are defined in part 772. The additional double quotations around new phrases, headings, or commonly used words, are used in the Background section of this proposed rule to assist in the readability of the text.

This proposed rule includes changes described under four headings:

(1) Clarifications to existing CCL controls, including the use of the terms “parts” and “components” on the CCL;

(2) Changes to conform the CCL to the multilateral export control regime control lists and previous amendments to the EAR;

(3) Structural changes to improve the clarity of the CCL; and

(4) Removal of fourteen ECCNs subject to the exclusive jurisdiction of the Nuclear Regulatory Commission.

(1) Clarifications to Existing CCL Controls, Including the Use of the Terms “Parts” and “Components” on the CCL

The majority of changes proposed in this rule would amend the CCL without changing the scope of the controls. However, this rule does propose changes that would affect the scope of one ECCN. Specifically, this rule proposes to remove ECCN 8A918 and add certain marine boilers to ECCN 8A992, where they would be controlled for AT and UN reasons. This change is described in more detail below under the heading “ECCN 8A918.”

The bulk of the changes this rule would make to the CCL are non-substantive and would provide additional regulatory guidance to people classifying items subject to the EAR. One proposed change would be to clarify the scope of ECCNs by providing clearer definitions of the terms “parts” and “components,” which is discussed below. The changes BIS proposes in this rule in this section are limited to aligning with the definitions of “part” and “component” included in a proposed rule published on July 15, 2011 (76 FR 41958) entitled “Proposed Revisions to the Export Administration Regulations (EAR): Control of Items the President Determines No Longer Warrant Control Under the United States Munitions List (USML).” (hereinafter “the July 15, 2011 rule”) These proposed changes include addingadditional references to “part” and “component” where needed in certain ECCNs to clarify that the scope of those ECCNs also extends to “parts” and “components” even if previously those ECCNs may have only referenced part or component, but not referenced both part and component together. The proposed definitions of “part” and “component” are provided below, along with a discussion of the context for the need to make certain conforming changes proposed in this rule. The proposed conforming changes included in this rule would not be published in final form until the revised definitions of “part” and “component” are published in final form in a separate rule.

BIS is not attempting, with the proposed changes adding additional references to “parts” and “components,” to change the scope of what the affected ECCNs control. If, however, the public believes any such changes would change the present scope of the affected ECCNs, then the public should submit comments that identify such changes and explain how the changes would cause the ECCNs to deviate from their present scope. In addition, the public is encouraged to review the entire CCL to identify and comment on any other ECCN that uses the terms “parts” or “components” where additional changes may be warranted to conform to the intended scope of those ECCNs.

The proposed clarifying changes are as follows:

(A)Revisions to ECCN headings to clarify meaning.

Revision to the headings of twenty-four ECCNs.In Supplement No. 1 to part 774—The Commerce Control List, this rule would revise, to enhance clarity, the headings of the following twenty-four ECCNs: 1A995, 1B115, 2A291, 2B005, 2B109, 2B352, 2B991, 2B992, 3B991, 4A994, 5A991, 5D992, 5E992, 6A006, 6A996, 6A997, 6A998, 6B995, 6D993, 7A103, 7A107, 8A992, 9A106 and 9B991. This rule would also clarify the relationship between the headings and the “items” paragraph in the List of Items Controlled section of these twenty-four ECCNs. For example, in certain ECCNs, the entries include an “items” paragraph, but the ECCN heading does not direct people to review the “items” paragraph. This rule would add the phrase “(see List of Items Controlled)” to these ECCN headings. For other ECCNs listed above, the heading includes the phrase “(see List of Items Controlled),” but the placement of the phrase is not correct in terms of what BIS intended to control in the ECCN. If the phrase appears at the end of the heading, then that means the “items” paragraph in the List of Items Controlled section is the exclusive, complete list of the items the ECCN controls. If, however, the phrase appears in the middle of the heading, then that means only that portion of the heading prior to the phrase “(see List of Items Controlled)” is specifically identified in the “items” paragraph in the List of Items Controlled section, and that the remaining part of the heading (i.e., the rest of the heading after the phrase “(see List of Items Controlled)”) is an exclusive, complete description.

The placement of the phrase “(see List of Items Controlled)” is important for “parts” and “components” referred to in ECCN headings. If “parts” and “components” references appear before the phrase, then that means the entry only controls “parts” and “components” specifically identified in the “items” paragraph in the List of Items Controlled section. If, however, the phrase is in the middle of the heading and the reference to “parts” and “components” appears after the phrase—such as “and specially designed “parts” and “components” therefor”—that means the ECCN would control specially designed “parts” and “components” for any item identified in the “items” paragraph in the List of Items Controlled section. This rule does not address the definition of “specially designed,” which was proposed in a separateFederal Registernotice on June 19, 2012 (77 FR 36409), but rather the relationship between these headings and the “items” paragraph in each of these respective ECCNs.

BIS is not attempting, with the proposed changes to the headings, to change the scope of what the affected ECCNs control. If, however, the public believes any such changes would alter the present scope of these ECCNs, then the public should submit comments that identify such changes and explain how the changes would cause the ECCNs to deviate from their present scope. In addition, the public is encouraged to review the entire CCL to identify and comment on any other ECCN headings that could be made clearer.

Revisions to thirteen ECCNs.In addition, this rule would add the phrase “as follows” to the headings of the following thirteen ECCNs: 0A981, 5D991, 5D992, 5E992, 6A992, 6A994, 6A995, 6A997, 6A998, 6B995, 6C994, 6D993 and 9B991, for consistency with the structure of other ECCNs on the CCL. The phrase “as follows” is used on some of the multilateral export control regime control lists, which is why the phrase is used on the CCL, including in some unilateral ECCNs to conform to the structure of the regime-based ECCNs. The multilateral export control regimes do not use the phrase “(see List of Items Controlled),” but this phrase is used in many of the multilateral-based ECCNs on the CCL. BIS seeks greater consistency in how CCL headings are constructed, in particular how these two phrases are used in the ECCN headings. BIS welcomes additional suggestions for how these two phrases can be used more consistently on the CCL and whether one term or another should be used instead of using these two phrases together in many ECCN entries.

ECCN 1D993.This rule would revise the heading of 1D993 to remove the term “equipment” for consistency with the definition of “equipment” proposed in the July 15, 2011 rule. This ECCN currently refers to equipment or materials, but the only ECCNs cross referenced in the heading are for controls on materials, so the term equipment is not needed in 1D993.

ECCNs 0D001, 3D980, 3E980, 4D980 and 4E980.This rule would revise the headings of ECCNs 0D001, 3D980, 3E980, 4D980 and 4E980, by removing the term “items” and adding the term “commodities” in its place. This rule would make this change because in the context of these five ECCN headings, the term “commodities” is more accurate and specific regarding the scope of these entries.

ECCN 2B998.The heading of 2B998 uses the undefined term “units.” To add greater specificity regarding what the term “unit” is intended to cover in this ECCN, this rule proposes to modify the heading by removing the term “units” and adding the term “circuit boards.” This change would clarify that “circuit boards” are the items covered under the heading of 2B998.

ECCNs 3A980 and 3A981.This rule would add the term “therefor” immediately before the term “n.e.s.” to the headings of ECCNs 3A980 and 3A981. This rule would make this change to emphasize that these ECCNs refer only to components of the subject voice print equipment and polygraph equipment.

ECCNs 5A001 and 5A991.This rule would correct the spelling of the word “antennae” in the “unit” paragraph of 5A001 and the “items” paragraph (f) of 5A991. This word should be spelled as “antennas” to reflect the intended meaning in these two ECCNs.

ECCN 6C992.This rule would correct a grammatical error in 6C992 by removing the word “which” and adding in its place the word “that.”

ECCN 9B002.This rule would correct a capitalization error in the heading of 9B002 by making the uppercase “S” in the phrase (See List of Items Controlled)lower case. This rule would make this change for consistency with other references to this phrase on the CCL.

(B)Clarifying the use of the terms “parts” and “components” on the CCL.

The July 15, 2011 rule included proposed definitions for the terms “parts” and “components.” The July 15, 2011 rule proposed defining “parts” as “any single unassembled element of a component, accessory, or attachment which is not normally subject to disassembly without the destruction or the impairment of design use. Examples include threaded fasteners (e.g., screws, bolts, nuts, nut plates, studs, inserts), other fasteners (e.g., clips, rivets, pins), common hardware (e.g., washers, spacers, insulators, grommets, bushings), springs and wire.”

The July 15, 2011 rule proposed defining “components” as an item that is useful only when used in conjunction with an “end item.” Components are also commonly referred to as assemblies. For purposes of this definition, an assembly and a component are the same. There are two types of “components”: “Major components” and “minor components.” A “major component” includes any assembled element which forms a portion of an “end item” without which the end item is inoperable. For example, for an automobile, components include the engine, transmission, and battery. If you do not have all those items, the automobile will not function, or function as effectively. A “minor component” includes any assembled element of a “major component.” “Components” consist of “parts.”' References in the CCL to “components” include both “major components” and “minor components.”

Another example for applying the definition of “components” in the automobile context would be a fuel pump and the engine. Under this additional example, the fuel pump is a minor component of an automobile, as it is an assembled element of a “major component,” the engine. While the car will not function without the fuel pump, it is not a “major component” because it is integrated into a “major component,” the engine.

The July 15, 2011 rule indicated BIS would review the use of these two terms on the CCL and would likely make clarifications to CCL entries to conform to the proposed definitions included in the July 15, 2011 rule under a separate rulemaking. This proposed rule addresses the use of the terms “parts” and “components” on the CCL to ensure these terms would be used in a manner consistent with the proposed definitions included in the July 15, 2011 rule.

The terms “parts” and “components” have sometimes been used interchangeably in various ECCNs. The proposed definitions included in the July 15, 2011 rule were developed to provide clear, distinct definitions for each of these terms and other terms such as “end item,” “system,” and “accessories and attachments,” to align with the definitions of these terms in the International Traffic in Arms Regulations (ITAR). See 22 CFR § 121.8. Such distinctions are significant for purposes of determining whether an ECCN applies to an item to be exported.

Under the July 15, 2011, construct for the definitions of “parts” and “components,” if an ECCN does not include a control on “parts” or “components,” then that ECCN would not, by definition, apply to the export of any particular “parts” or “components” meeting the respective definitions. However, as referenced above, the terms “parts” and components” have sometimes been used interchangeably, so to ensure that once these definitions of “parts” and “components” are added to the EAR that the scope of existing controls are not narrowed, this rule proposes to add in additional references to “part” or “component,” in particular for ECCNs that are based on the multilateral export control regime control lists. Under the current EAR many of these ECCNs based on the multilateral control lists only list “components,” but not “parts.” However, the U.S. Government and other multilateral regime members have interpreted these ECCNs as also including “parts.” BIS proposes in this rule to add additional references to “parts” in these ECCNs, so the U.S. Government can ensure that it is meeting its multilateral export control regime commitments. Over the mid- to long-term, BIS will reach out to the respective multilateral regimes and discuss whether certain ECCNs should be limited to “components” or “parts” or some other subset of “components,” such as major components or minor components.

Many of the unilateral-based ECCNs on the CCL reference “parts,” but not “components.” For unilateral-based ECCNs, BIS has more discretion in whether these ECCNs should control “parts” and “components.” However, for consistency with the approach proposed for the multilateral based ECCNs in this rule and to ensure the scope of the unilateral ECCNs is not changed, this rule proposes adding additional references to “parts” and “components” as needed in the unilateral ECCNs to conform to how BIS has interpreted the scope of these ECCNs in the past.

To conform to the proposed definitions of “parts” and “components,” BIS is proposing a number of changes to the CCL to incorporate the terms “parts” and “components” in specific ECCNs. The primary purpose of these ECCN changes is to conform to those proposed definitions and to ensure that no changes are made to the current U.S. Government interpretation of these ECCN entries. The public should keep in mind the overall purpose is not to change the current scope of controls, but rather to clarify the scope of these ECCNs consistent with the July 15, 2011 rule definitions and how items are currently classified under these ECCNs.

These proposed changes would revise the following one hundred fifty eight ECCNs on the CCL where the term “parts” or “components” is used, as identified and described below in more detail:

“Parts” is used, but “specially designed”“components” or “ “components” as follows” is intended or “specially designed” “parts” and “components” is intended.In three ECCNs, the term “parts” is used, but the term “specially designed” “components” is intended. This rule would remove the term “parts” and replace it with the terms “specially designed” “components” in the following three ECCNs: 0A979, 3A980 and 3A981. This rule would remove the term “part” and replace it with the terms “specially designed” “parts” and “components” to the following four ECCNs: 0A982, 0A983, 0A985, 0A986. In ECCNs 0A984 and 0A987, the term “parts” is used, but the term “components” or “ “components” as follows” is intended. This rule would remove the term “parts” and replace it with the term “components” or “ “components” as follows” in these ECCNs.

“The hybrid “component parts” is used, but “parts” and “components” is intended.In certain ECCNs the hybrid undefined term “component parts” is used, but the intent is “parts” and “components.” This rule would change ECCN 3A201 to bring its meaning into alignment with this intent by changing “component parts” to “parts” and “components.” This same issue appears in some of the “xY018” ECCNs on the CCL, but given those ECCNs will be addressed in the ongoing USML to CCL process as those items in the “xY018” ECCNs are moved to the “600 series” ECCNs, this rule does not propose making changes to those “xY018” entries.

The term “spare parts” is used, but “parts” is intended.In ECCN 5A002, the term spare parts is used in the “LVS” (License Exception “shipments of limited value”) paragraph, but the intent is “parts.” The inclusion of the non-standard, undefined term “spare parts” could cause confusion about the scope of the LVS authorization. This rule removes the word “spare” to clarify the applicability of this license exception to this ECCN.

“Parts” or “accessories” is included, but is not within scope of the ECCN.In ECCNs 2B201, 2B206, 2B209, 2B290, 6A225, 6A226, 6A992, 6A994, 6A995, 6C992, 6C994, and 9A120, the terms “parts” and “accessories” are used in the “unit” paragraph in the List of Items Controlled section, but the ECCN does not include “parts” or “accessories” in the list of what that ECCN controls. The inclusion of references to “parts” or “accessories” in these “unit” paragraphs may cause confusion regarding the scope of those ECCNs. This rule would remove such references to “parts” and “accessories” in these ECCNs.

“Accessories” is included, but is not within scope of the ECCN.In ECCNs 2A292, 6A203, 6A992 and 9A106, the terms “parts” and “accessories” are used in the “unit” paragraph in the List of Items Controlled section, but the ECCN does not include “accessories” in the list of items that the ECCN controls. The inclusion of a reference to accessories in these “unit” paragraphs may cause confusion regarding the scope of those ECCNs. In these same ECCNs, the term “components” is included in the “unit” paragraph, but with a different unit of measurement than “parts.” The references to “parts” and “components” with different units of measurement is inconsistent with the interchangeable use of these terms. This rule would remove such “parts” and “accessories” references and insert “parts” before the “components” reference in these ECCNs.

“Parts” or “components” is used, and BIS intends the ECCN to mean “parts” and “components.”As the terms “parts” and “components” are currently used interchangeably in many entries, maintaining current controls while adopting definitions for these words requires the use of both words in each of the one hundred forty-eight (148) ECCNs where one of those terms is currently used and intended. This will ensure that existing ECCNs maintain the same controls as exist under the prior undefined interchangeable use of the terms parts and components that encompass all subsidiary elements of a complete system. BIS, in consultation with the other agencies and multilateral export control regimes, intends to revise these entries in the future to further refine the CCL controls.

This rule would insert “parts” and add quotation marks in the following 127 ECCNs and Notes:

1A001, 1A002, 1A004, 1A005, 1A006, 1A008, 1A102, 1A995, 1B001, 1B003, 1B101, 1B102, 1B115, 1B117, 1B118, 1B119, 1C007, 1C117, 1C230, 1C350, 1C355, 2A001, 2A991, 2B001, 2B003, 2B004, 2B005, 2B109, 2B116, 2B229, 2B351, 2B352, 2B992, 2B998, 2D351, 3A001, 3A003, 3A101, 3A201, 3A233, 3A292, 3A982, 3A991, 3A999, 3B001, 3B002, 3B991, 3B992, 3D982, 3D991, 3E001, 3E003, 3E982, 3E991, 4A001, 4A003, 4A004, 4A101, 4A994, 5A001, 5A991, 5B001, 5E001, 5A002, 5A992, 6A001, 6A002, 6A003, 6A004, 6A005, 6A006, 6A008, 6A102, 6A107, 6A205, 6A991, 6A992, 6A995, 6A996, 6A998, 6B008, 6B995, 6D001, 6E001, 6E002, 6E993, 7A001, 7A002, 7A003, 7A005, 7A008, 7A101, 7A102, 7A103, 7A104, 7A105, 7A107, 7D001, 7D101, 7E001, 7E002, 7E101, 8A002, 8A992, 9A002, 9A003, 9A004, 9A005, 9A006, 9A008, 9A010, 9A011, 9A012, 9A106, 9A108, 9A109, 9A111, 9A120, 9B001, 9B002, 9B003, 9B009, 9B010, 9B115, 9B116, 9D004 and 9E003.

In addition to the 127 ECCNs identified in the previous paragraph, this rule would also insert “parts” and add quotation marks in the Note to the Table on Deposition Techniques in the introductory portion of Category 2, Product Group E, and the introductory Notes to Category 5, Parts I and II.

This rule would insert “components” and add quotation marks in the following 12 ECCNs:

2A292, 2A994, 2B001, 2B201, 5A980, 6A203, 6B995, 8A992, 9A012, 9A106, 9A991 and 9B010.

This rule would reposition the term “parts” before “components” and add quotation marks to the existing terms “parts” and “components” in the following 12 ECCNs:

1A004, 1C002, 2A983, 2A984, 3A001, 4A994, 6A992, 7A994, 9A106, 9A991, 9B990 and 9E003.

(C)Clarifying the use of the term “assemblies” on the CCL as components.

In the July 15, 2011 rule, BIS proposed to define the term “components” to mean “components are also commonly referred to as assemblies. For purposes of this definition, an assembly and a component are the same.” BIS has reviewed the CCL to ensure the term “assemblies” is not being used redundantly on the CCL. This review has identified five ECCNs (5A991, 9A002, 9A003, 9B002 and 9D004) where the terms “assemblies” and “components” are being used in the same ECCN, but the term “assemblies” should be removed to avoid the incorrect interpretation that assemblies are different from components. This rule would add the term “electronic” before the term “assemblies” in 5A991 under “items” paragraphs (c.1) and (g) to distinguish the particular type of assembly that is intended to be controlled under this entry. With regard to ECCNs 9A002, 9A003, 9B002 and 9D004, the U.S. Government intends to develop a proposal to submit to the Wassenaar Arrangement that would propose the removal of the term “assemblies” from these ECCNs or propose adding more descriptive terms, such as “electronic” to clarify the scope of those other multilateral-based ECCNs.

This rule would remove reference to the term “assemblies” in ECCN 6A998, and add the term “components” in its place. As described above, this rule also proposes adding the term “parts” to 6A998.

(D)This rule would also revise the following ECCNs:

ECCN 1C996.This rule would amend 1C996 by revising the heading to add the phrase “not controlled by 1C006,” to clarify the scope of 1C996 as it relates to 1C006.

ECCN 2B350.This rule would amend 2B350 by revising the “Related Definitions” paragraph in the List of Items Controlled section to indicate for purposes of this entry that the term `chemical warfare agents' includes those agents “subject to the ITAR” (see 22 CFR parts 120 through 130). In addition, this rule would add a note at the end of the “items” paragraph in the List of Items Controlled section to provide a reminder and cross reference to the Note for exporters, reexporters and transferors, stating the following: “See Categories V and XIV of the United States Munitions List for all chemicals that are “`subject to the ITAR' (see 22 CFR parts 120 through 130).”

ECCN 2B996.This rule would amend 2B996 by revising the heading to clarify that dimensional inspection or measuring systems or equipment not controlled by 2B006 or 2B206 are controlled under this ECCN. Certain dimensional inspection or measuring systems or equipment controlled under 2B206 would also be controlled under 2B996. To clarify the relationship between 2B996 and 2B206, this rule would add 2B206 to the exclusion from 2B996.

ECCN 6A002.This rule would revise the STA (License Exception “Strategic Trade Authorization”) paragraph in theLicense Exceptions section, which as proposed in this rule would now be in its own section called Special Conditions for License Exception STA. This rule would remove the phrase, “to any of the eight destinations listed in § 740.20(c)(2) of the EAR” from the end of the current STA paragraph and would add it to the introductory text of the STA paragraph. BIS makes this change to clarify the 6A002 “items” paragraphs that are not eligible for License Exception STA to any of the eight destinations listed in § 740.20(c)(2).

ECCN 8A918.This rule would remove the marine boilers from 8A918 and would move these items to two new “items” paragraphs that would be added in the List of Items Controlled section of 8A992. This rule would add a new “items” paragraph (l) to 8A992 for marine boilers designed to have any of the characteristics in the new 8A992.l.1 or .l.2. This rule would add “items” paragraph (m) to 8A992 for components, parts, accessories, and attachments for marine boilers that would be described in 8A992.l. This rule's proposed movement of these commodities from 8A918 to 8A992.l and .m would remove the Regional Stability (RS) Column 2 control on these commodities. The Anti-Terrorism (AT) and United Nations (UN) controls would be retained for the commodities moved to 8A992.l and .m. BIS proposes this change because these marine boilers do not warrant an RS control or a separate ECCN entry and can therefore be added under ECCN 8A992 to be controlled with other types of marine commodities warranting an AT control.

ECCN 9A980.This rule would revise 9A980 by removing the term “parts” from the heading of the ECCN and adding a new heading note to clarify the scope of the ECCN. The Crime Control (CC) parts that would have been classified under this entry if exported alone are already accounted for on the CCL and controlled for CC reasons. The new heading note that this rule would add clarifies that in order for a vehicle to be classified as a nonmilitary mobile crime scene laboratory under ECCN 9A980, the vehicle must contain one or more analytical or laboratory items controlled for Crime Control (CC) reasons on the CCL, such as items controlled under ECCNs 3A980 and 3A981. This new heading note does not change the scope of the ECCN, but would make the scope of this ECCN and the relationship to other CC ECCNs on the CCL clearer.

(E)Addition of “Related Controls” to aid in classification.

Most ECCNs on the CCL contain a “related controls” paragraph in the List of Items Controlled section. The “related controls” paragraph provides cross references to related ECCNs to assist the public in classifying items that are subject to the EAR. In some ECCNs, the “related controls” paragraph also includes cross-references to the export controls other U.S. Government agencies administer.

This rule proposes adding a number of additional “related controls” paragraphs or revising existing “related controls” paragraph to assist the public in classifying items. In responding to this proposed rule, the public may also provide suggestions for additional “related controls” that would assist the public in classifying items. This rule proposes revising the “related controls” paragraphs in the following twelve ECCNs: 1A985, 1B117, 1B118, 1B119, 1B225, 1C117, 1C233, 2B105, 2B116, 3A230, 7A103 and 9B009.

Lastly, this rule would revise the “related controls” paragraphs in ECCN 7A005 and 7A994 and include the substance of the amended related control paragraph as a new “license requirement note” in 7A994. This rule change would clarify the relationship between 7A005 and 7A994 and provide guidance on the appropriate classification for GPS equipment. The added text in 7A005 and 7A994 would alert persons classifying GPS items that “typically commercially available GPS do not employ encryption or adaptive antenna and are classified as 7A994.”

(F)Addition of the term “subject to the ITAR” to the EAR.

This rule would add the term “subject to the ITAR” to § 772.1 (Definitions of terms as used in the Export Administration Regulations (EAR)). This defined term would be added to parallel the use of the term “subject to the EAR” that is commonly used in the EAR, along with simplifying many of the references to the export jurisdiction of the Department of State that are included in the EAR. The vast majority of these references to the export control jurisdiction of the Department of State are on the CCL. This rule would also add the following definition of “subject to the ITAR” in § 772.1:

A term used in the EAR to describe those commodities, software, technology (e.g., technical data) and defense services over which the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) exercises regulatory jurisdiction under the International Traffic in Arms Regulations (ITAR) (see 22 CFR 120-130).

This rule would make conforming changes to the rest of the EAR, including several ECCNs and §§ 734.4 (De minimisU.S. content), 734.6 (Assistance available from BIS for determining licensing and other requirements), and 740.6 (Technology and software under restriction (TSR)), by adding “subject to the ITAR” where the export control jurisdiction of the Department of State is referenced. In addition to making the conforming change in § 734.6, this rule would revise the language that refers to the ITAR to clarify that in order to determine whether an item is “subject to the ITAR,” you should review the ITAR's United States Munitions List (see 22 CFR §§ 120.6 and 121.1). The revised text would also clarify you may also submit a request to the Department of State, Directorate of Defense Trade Controls, for a formal jurisdictional determination regarding the commodity, software, technology, or activity at issue (see 22 CFR § 120.4).

(2) Changes to Conform the CCL to the Multilateral Export Control Regime Control Lists and Previous Amendments to the EAR

This rule also proposes making the following changes to conform the CCL to the multilateral export control regime control lists and to conform the CCL to the intent of past amendments to the EAR. These are cases where a previous amendment to the EAR was intended to effect a change, but the change was not implemented as intended or where a conforming change should have been made to the CCL, but was inadvertently not made in a past rulemaking. This rule proposes to make the following conforming changes:

(A)Conforming changes for TSR limitations of Wassenaar Very Sensitive List Items.

In implementing its commitment to exercise vigilance for the licensing of items listed on the Wassenaar Very Sensitive List, the United States has limited the use of License Exception TSR to a list of specifically identified countries for certain ECCNs. These limitations are contained in the TSR paragraph in the License Exception section of nine ECCNs (i.e., ECCNs 1E001, 5D001, 5E001, 6D001, 6D003, 6E001, 6E002, 8D001 and 8E001) that contain items on the Wassenaar Very Sensitive List and for which TSR has been authorized for some, or all of the ECCN.

The TSR paragraph limitation was introduced in 1998, upon implementation of the Wassenaar Arrangement (63 FR 2452), with a list of sixteen destinations eligible for TSR for Wassenaar Very Sensitive List items. Approximately one-year later Japan was added to the TSR paragraph limitation (64 FR 10852). In 2008, Australia and Norway were added to the TSRparagraph in ECCN 1E001, with the explanation that their original exclusion had been an oversight. Australia and Norway were not added to the other TSR paragraphs with Wassenaar Very Sensitive List limitations, creating an inconsistency.

This rule proposes to adopt a standardized list of countries under the EAR for the nine ECCNs. The use of this standardized list of countries would simplify the use of the TSR License Exception for these nine ECCNs and aid the public's understanding regarding what countries are eligible and not eligible to receive National Security (NS) controlled technology under these nine ECCNs. BIS has recently determined that the thirty six (36) countries listed in License Exception Strategic Trade Authorization, Section 740.20(c)(2) of the EAR, are eligible for License Exception authorization for Wassenaar Very Sensitive List items. These 36 countries are: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, or the United Kingdom. This rule proposes to revise the list of countries in the TSR paragraph for these nine ECCNs to state “those 36 countries listed in § 740.20(c)(1) (License Exception STA).” The 17 countries (19 countries in 1E001) that were previously identified as being eligible for License Exception TSR under these ECCNs were a subset of the 36 STA-eligible countries. Therefore, this proposed rule would add the remaining 19 countries, except for 1E001 where this proposed rule would add the remaining 17 countries, as eligible countries to receive this type of technology through application of License Exception TSR under these ECCNs.

(B)ECCN changes to conform to the multilateral export control regimes.

ECCNs 1A101.This rule would amend 1A101 by replacing the defined term “missiles” with the phrase “rockets, missiles, or unmanned aerial vehicles capable of achieving a “range” equal to or greater than 300 km” to conform to the Missile Technology Control Regime (MTCR) Annex.

ECCNs 1D103.This rule would amend 1D103 by replacing the defined term “missiles” with the phrase “rockets, missiles, or unmanned aerial vehicles capable of delivering at least a 500 kg payload to a “range” equal to or greater than 300 km” to conform to the MTCR Annex.

ECCN 5D101.This rule would amend 5D101 by removing the term “items” and adding the term “equipment” in its place. This rule would make this change to be consistent with the MTCR Annex.

ECCN 6A203.This rule would amend 6A203 by removing “accessories in $ value” from the “unit” paragraph in the List of Items Controlled section. This change would be made to conform to the Nuclear Suppliers Group (NSG) control list, which does not include controls on “accessories” under NSG 1.A.2, 5.B.3, and 5.B.4.

ECCN 6D102.This rule would amend 6D102 by removing the term “goods” from the heading and adding the term “equipment” in its place. This rule would make this change to be consistent with the MTCR Annex.

ECCN 6D994.This rule would remove 6D994 to conform to a previous amendment to the EAR that imposed a control for these same items under 6D003.c. BIS's intention when 6D994 was added to the CCL was to impose a control on this software until such time as a control could be approved at the Wassenaar Arrangement and implemented in the EAR. At the time when the final rule to add this software to 6D003.c was published, the intention was to remove 6D994. However, this entry was inadvertently retained at the time 6D003.c was added to the CCL, which may have caused confusion for exporters trying to classify this type of software because the software meets the description of two software ECCNs. To address this scenario, this rule would remove 6D994 from the CCL, leaving 6D003.c as the control ECCN.

ECCN 7D101.This rule would amend 7D101 by revising the heading to include 7A117 in the list of ECCNs for which 7D101 controls the software. 7A117 is a reference to a USML control based on the MTCR Annex. 7D101 controls the software of certain commodities controlled for MT reasons. This change is made to conform to the MTCR Annex.

ECCN 7E104.This rule would amend 7E104 by replacing the defined term “missiles” with the phrase “rockets or missiles capable of achieving a “range” equal to or greater than 300km” to conform to the MTCR Annex.

ECCN 9A107.This rule would amend 9A107 by revising the heading to replace the word “engines” with the word “motors.” This change is made to conform to the MTCR Annex.

ECCN 9A110.This rule would amend 9A110 by revising the heading to include 9A109 in the list of ECCNs for which 9A110 controls the composite structures, laminates and manufactures thereof. 9A109 is a reference to a USML control based on the MTCR Annex. 9A110 controls the software of certain commodities controlled for MT reasons. This rule would further amend 9A110 by replacing the defined term “missiles” with the phrase “rockets, missiles, or unmanned aerial vehicles capable of achieving a “range” equal to or greater than 300 km.” These changes are made to conform to the MTCR Annex.

ECCN 9A118.This rule would amend 9A118 by inserting the phrase “missiles, and unmanned aerial vehicles capable of achieving a “range” equal with a range capability of 300 Km or greater” into the heading to conform to the MTCR Annex.

ECCN 9B115.This rule would amend 9B115 by revising the heading to include 9A103 in the list of ECCNs for which 9B115 controls the “production equipment.” 9A103 is a reference to a USML control based on the MTCR Annex. 9B115 controls the “production equipment” of certain commodities controlled for MT reasons. This change is made to conform to the MTCR Annex.

ECCN 9B116.This rule would amend 9B116 by revising the heading to include 9A103 in the list of ECCNs for which 9B116 controls the “production equipment.” 9A103 is a reference to a USML control based on the MTCR Annex. 9B116 controls the “production equipment” of certain commodities controlled for MT reasons. This change is made to conform to the MTCR Annex.

ECCN 9D103.This rule would amend 9D103 by revising the heading to include ECCNs 9A009, 9A107 and 9A109, and to expand the reference to 9A105 from 9A105.a to the entire ECCN in the list of ECCNs for which 9D103 controls certain “software.” ECCNs 9A009, 9A105, 9A107 and 9A109 are references to USML controls based on the MTCR Annex. 9D103 is a reference to USML control based on the MTCR Annex. This change is made to conform to the MTCR Annex.

ECCN 9D104.This rule would amend 9D104 by revising the heading to include all of ECCNs 9A006, 9A007, 9A008, 9A009, 9A010, 9A115 and 9A116 and 9A106.e in the list of ECCNs for which 9D104 controls the “software.” 9A006, 9A007, 9A008, 9A009, 9A010, 9A115 and 9A116 are references to USML controls based on the MTCR Annex. 9A106.e is controlled on the CCL for MT reasons. 9D104 controls the “software” of certain commodities controlled for MT reasons. This change is made to conform to the MTCR Annex.

ECCN 9D105.This rule would amend 9D105 by replacing the defined term“missiles” with the phrase “rockets, missiles, or unmanned aerial vehicles capable of achieving a “range” equal to or greater than 300 km” to conform to the MTCR Annex.

(3) Structural Changes To Improve the Clarity of the CCL

ECCNs on the CCL follow the same basic paragraph structure, although not all ECCNs contain the same paragraphs. The common paragraph structure is intended to allow the public to quickly review ECCNs and to identify relevant paragraphs in each ECCN. This rule proposes changes to the standard section headings that are used in most ECCNs on the CCL. These proposed changes would affect most of the ECCNs on the CCL, but would be implemented through instructions instead of setting out each proposed revision in the regulatory text. BIS is proposing the changes in the format to save on the cost of implementing these structural changes. BIS's decision also took into account that the proposed changes are not ECCN specific and are more focused on how the ECCN information is being communicated to the public. Each of the proposed structural changes this rule would implement improves the clarity of the CCL and is further described below.

(A)Revision of License Exceptions section heading.

This rule would revise the License Exceptions section heading to add greater specificity. This rule would revise the section heading by changing it from “License Exceptions” to the more specific section heading of “List-Based License Exceptions (See Part 740 for a complete listing of license exceptions and requirements).” This rule would also add a parenthetical after the revised section heading to provide a cross reference to the license exceptions part of the EAR. This rule would add this cross reference because a definitive determination regarding whether a license exception may be used for a specific ECCN can only be made after also reviewing the applicable license exceptions provisions in part 740 of the EAR.

(B)Removal of the License Exception STA paragraphs.

In order to implement the changes described above under (A) Revision of License Exceptions section heading, this rule also proposes removing the License Exception STA paragraph in the License Exceptions section of the following forty-nine ECCNs: 1A002, 1C001, 1C007, 1C010, 1C012, 1D002, 1E001, 1E002, 2D001, 2E001, 2E002, 3A002, 3B001, 3D001, 3E001, 4A001, 4D001, 4E001, 5A001, 5B001, 5D001, 5E001, 6A001, 6A002, 6A003, 6A004, 6A006, 6A008, 6B008, 6D001, 6D003, 6E001, 6E002, 7D003, 7E001, 7E002, 8A001, 8A002, 8D001, 8D002, 8E001, 8E002, 9B001, 9D001, 9D002, 9D004, 9E001, 9E002 and 9E003. This rule would move the text of those License Exception STA paragraphs to a new section titled “Special Conditions for STA.” This rule proposes creating this new section immediately following the proposed “List-Based License Exceptions (See Part 740 for a complete listing of license exceptions and requirements)” instruction, because the License Exception STA paragraphs do not perform the same function as the other list-based license exception paragraphs. This rule does not propose any changes to the regulatory text included in the current License Exception STA paragraphs of these ECCNs. The changes proposed in this rule are limited to proposing a new section heading and then moving the existing License Exception STA paragraphs in these forty-nine ECCNs to the new STA section heading.

(C)Adding a cross-reference after Country Chart.

This rule proposes revising the “Country Chart” paragraph heading in the License Requirements section to add a parenthetical to indicate where the public can find the Country Chart. The revised Country Chart paragraph heading would now read “Country Chart (See Supp. No. 1 to part 738).” Not all ECCNs include a Country Chart paragraph and a small number of ECCNs do not rely on the Commerce Country Chart for determining destination-based license requirements. Most ECCNs, however, are structured to refer to the information contained in the Country Chart paragraph in Supplement No. 1 to part 738 to identify destination-based license requirements. The changes in this rule would clarify that for the ECCNs that use this structure, exporters, reexporters and transferors need to refer to the Country Chart in Supplement No. 1 to part 738 to determine destination-based license requirements. For experienced exporters, reexporters, and transferors, this structure is well understood. The new cross references would be primarily intended for those exporters, reexporters, and transferors who are new to the EAR and who may not as readily understand the relationship between this standard ECCN paragraph and Supplement No. 1 to part 738. The new parenthetical phrase at the end of the Country Chart paragraph would make the relationship explicit.

(D)Adding a new “Reporting Requirements” section to certain ECCNs.

Some ECCNs include references to reporting requirements. They are typically found either in License Requirement notes or in notes to the “items” paragraphs in the List of Items Controlled section. BIS has adopted a standardized paragraph structure for ECCNs, as much as possible, to assist the public in classifying items. A standardized paragraph structure helps the public classify items by putting the information contained in an ECCN into a useable and easily recognizable format. The current reporting requirements, which are found in various sections and paragraphs of the ECCN, deviate from this type of standardized structure. This rule proposes to add a new section heading called Reporting Requirements where the existing reporting requirements found in ECCNs would be consolidated to address this issue. This rule does not propose any changes to the scope of current reporting requirements. This proposed standardized structure would aid in compliance with the reporting requirements and assist exporters in more quickly and easily identifying ECCNs subject to reporting requirements. The rule proposes adding the new Reporting Requirements section heading immediately before the License Exceptions section, which, as proposed above, would now be revised to read “List-Based License Exceptions (See Part 740 for a complete listing of license exceptions and requirements).”

To implement this change in Supplement No. 1 to part 774 (the Commerce Control List), this rule would remove the “License Requirements Notes” paragraphs in the License Requirements section in the following thirty-nine Export Control Classification Numbers (ECCNs): 1A002, 1C007, 1C010, 1D002, 1E001, 1E002, 2D001, 2E001, 2E002, 3A002, 3D001, 3E001, 4A001, 4E001, 5A001, 5B001, 5D001, 5E001, 6A001, 6A002, 6A004, 6A006, 6A008, 6D001, 6D003, 6E001, 6E002, 8A001, 8A002, 8D001, 8D002, 8E001, 8E002, 9B001, 9D001, 9D002, 9E001, 9E002 and 9E003. In these thirty-nine ECCNs, this rule would add the new section entitled “REPORTING REQUIREMENTS See § 743.1 of the EAR for reporting requirements for exports under License Exceptions, Special Comprehensive Licenses, and Validated End-User authorizations” after the License Requirements section in each of these respective ECCNs. This proposed rule would also make changes to the new Reporting Requirements section to ensure the text conforms to the listingof authorizations in § 743.1 that require reporting to BIS.

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

(A)Removal of fourteen ECCNs.

The CCL includes forty-nine ECCNs that refer to items that are subject to the exclusive jurisdiction of the Department of Energy, the Nuclear Regulatory Commission, or the Department of State. They constitute approximately 10% of the total number of ECCNs on the CCL. Of the forty-nine ECCNs, fourteen ECCNs are subject to the export licensing authority of the Nuclear Regulatory Commission at 10 CFR part 110. This rule proposes removing these fourteen ECCNs from the CCL. The fourteen ECCNs are 0A001, 0B001, 0B002, 0B003, 0B004, 0B005, 0B006, 0C001, 0C002, 0C004, 0C005, 0C006, 0C201 and 1C012. The ECCNs that BIS proposes to remove are Nuclear Trigger List items, so the jurisdiction of these items is already established under U.S. export controls and, as explained below, there is no need to include this additional cross reference from the CCL to the controls maintained by the Nuclear Regulatory Commission.

BIS's original purpose for including these ECCNs on the CCL was to supplement § 734.3 (Items subject to the EAR) under paragraph (b)(1), which describes items that are not subject to the EAR because they are subject to the exclusive jurisdiction of another agency of the U.S. Government, and to supplement the jurisdiction information for the other U.S. Government agencies found in Supplement No. 3 to part 730 (Other U.S. Government Departments and Agencies with Export Control Responsibilities). BIS also included these ECCNs to better align the CCL with the European Union's control lists that are primarily based on the multilateral export control regimes. However, by including references to other agencies' controls in specific ECCNs there is the potential that such ECCN references will become out of date if the other agencies update their respective regulations and the corresponding changes are not made in the EAR cross reference in a timely manner.

For example, on September 7, 2011 (76 FR 55278), the National Nuclear Security Administration, Department of Energy (DOE) published a notice of proposed rulemaking that proposed various amendments to regulations concerning unclassified assistance to foreign atomic energy activities. These proposed revisions were intended to reduce uncertainties for industry users concerning which foreign nuclear related activities by U.S. persons are “generally authorized” under the regulation and which activities require a “specific authorization” from the Secretary of Energy. However, if the ECCNs on the CCL that currently refer to DOE and NRC controls are not updated, the uncertainties for exporters, reexporters and transferors would increase because of inconsistencies in the different regulations. Given that the DOE and NRC respective regulations are controlling in this area and these ECCNs are only acting as a cross reference, BIS is proposing the removal of these ECCNs.

BIS has determined there still is utility in including general cross references to other agencies' controls. Thus, this rule proposes to include a general cross reference at the beginning of the CCL in a revised § 774.1 (Introduction) that would contain those ECCNs that have been reserved and are subject to the exclusive jurisdiction of another agency of the U.S. Government. In addition, the related control paragraphs of ECCNs would contain cross references to controls of other agencies to the extent that such controls are similar to or related to the controls of certain ECCNs.

The remaining thirty-five of the forty-nine ECCNs refer to items that are “subject to the ITAR,” which is maintained by the Department of State. Given the ongoing review of the United States Munitions List (USML) that is being conducted under the ECR Initiative, it is premature to propose removing or revising these thirty-five ECCNs. In addition, given the number of cross references, in particular in Categories 7 and 9 of the CCL, to these thirty-five ECCNs, BIS determined that removing the ECCNs that are “subject to the ITAR” should be addressed at a later time once the review of the USML is completed.

(B)Changes to the CCL to conform to the removal of these fourteen ECCNs.In addition to removing the fourteen ECCNs, this rule would also make conforming changes to eleven ECCNs that would be retained on the CCL. The ECCNs that would be revised by this rule contain references to one or more of the fourteen ECCNs that would be removed.

The removal of the fourteen ECCNs should not impact the existing controls for items subject to the EAR. However, given the interrelationship between the fourteen ECCNs removed and the eleven ECCNs where conforming changes would be required, BIS is particularly interested in any comments regarding whether the proposed changes accurately capture the intent of the previous references (i.e., the references to the fourteen ECCNs that would be removed in the eleven ECCNs that are retained on the CCL).

The rule would make conforming changes to the following eleven ECCNs: 1A290, 1C107, 1C240, 1C298, 3A225, 3A226, 3A227, 3A233, 3A999, 6A005 and 6A205. This rule's proposed revisions consist of the following:

ECCNs 3A225, 3A226, 3A227, 3A233, 6A005 and 6A205.This rule would revise six ECCN headings (3A225, 3A226, 3A227, 3A233, 6A005 and 6A205). This rule would take this approach to minimize the number of changes that would need to be made, while still ensuring the headings would reflect the intended scope of these six ECCNs.

On the CCL, these six ECCN headings include references to some of the fourteen ECCNs that would be removed as a shorthand way of communicating the scope of items controlled. Therefore, the removal of these fourteen ECCNs would require that a broader description be added to the headings of the ECCNs that would be retained. If only one of the fourteen ECCNs that would be removed is referenced, then BIS believes that in most cases it is easy to incorporate the text of the removed ECCN into the heading of the ECCN that would be retained. However, there are certain ECCNs that contain multiple references to the ECCNs that would be removed. In the cases where multiple ECCNs are referenced, an effort to insert all the text into the headings as a conforming change would not be feasible. To address this issue, this rule would add heading notes, which would provide more space to describe the substance of the ECCNs that would be removed from the respective headings. The end of the revised headings would include a reference to the heading notes to alert persons classifying their items to review the heading notes as they determine whether their item in question was classified under the removed ECCN.

ECCNs 1A290, 1C107 and 1E001.This rule would revise three “related controls” paragraphs in ECCNs 1A290, 1C107 and 1E001. These changes would revise references to one or more of the fourteen removed ECCNs in each of the three remaining ECCNs and replace them with more descriptive explanations in the related controls. These changes would reduce the need for cross-referencing in the CCL to the fourteen removed ECCNs. Another alternative would be to take the opposite approach and instead simply use very broad descriptors for the typesof items that are subject to the exclusive jurisdiction of another export control agency of the U.S. Government. BIS would welcome comments from the public regarding whether this alternative approach of simply using broad descriptors or some other approach not yet considered by BIS would be better than what is proposed.

ECCN 1E001.This rule would also revise 1E001 by removing the reference to 1C012 in the License Exception STA paragraph in the License Exceptions section. This ECCN is subject to the exclusive jurisdiction of another agency. Thus, License Exception STA could never be used as the authority to export an item described in 1C012.

ECCN 1C298.This rule would revise one CCL note in ECCN 1C298 to remove references to one or more of the fourteen ECCNs that would be removed by this rule.

(C)Adding a general cross reference to the fourteen ECCNs that would be removed.

In § 774.1 (Introduction), this rule would redesignate the introductory text of the section as paragraph (a) with the heading “Scope of the control list,” and would add a paragraph (b) with the heading “ECCN cross-references for items subject to the exclusive jurisdiction of another agency.” The introductory text of paragraph (b) would indicate that prior to the date of publication in theFederal Registerof the final rule that would remove these fourteen ECCNs, the CCL contained fourteen ECCNs that were included as cross references on the CCL to the export control regulations administered by the Nuclear Regulatory Commission. Paragraph (b) would identify ECCNs formerly listed on the CCL that were subject to the jurisdiction of the Nuclear Regulatory Commission at 10 CFR part 110. This rule would add a note to paragraph (b) to indicate that ECCNs 0D001 and 0E001 (ECCNs that are proposed to be retained on the CCL) were subject to the jurisdiction of the Nuclear Regulatory Commission at 10 CFR part 110 or jurisdiction of the Department of the Energy at 10 CFR part 810, but also have certain portions that, as of the date of publication of this rule, were “subject to the ITAR.” These ECCNs would be retained on the CCL as a cross reference.

Although the Export Administration Act expired on August 20, 2001, the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as extended by the Notice of August 15, 2012, 77 FR 49699 (August 16, 2012), has continued the Export Administration Regulations in effect under the International Emergency Economic Powers Act. BIS continues to carry out the provisions of the Export Administration Act, as appropriate and to the extent permitted by law, pursuant to Executive Order 13222.

Rulemaking Requirements

1. Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distribute impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has been designated a “significant regulatory action,” although not economically significant, under section 3(f) of Executive Order 12866. Accordingly, the rule has been reviewed by the Office of Management and Budget (OMB).

2. Notwithstanding any other provision of law, no person is required to respond to nor be subject to a penalty for failure to comply with a collection of information, subject to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501et seq.) (PRA), unless that collection of information displays a currently valid Office of Management and Budget (OMB) Control Number. This regulation involves collections previously approved by OMB under control numbers 0694-0088, “Multi-Purpose Application,” which carries a burden hour estimate of 43.8 minutes for a manual or electronic submission. Total burden hours associated with the PRA and OMB control number 0694-0088 are expected to decrease slightly as a result of this rule because of the proposed removal of ECCN 8A918. You may send comments regarding the collection of information associated with this rule, including suggestions for reducing the burden, to Jasmeet K. Seehra, Office of Management and Budget (OMB), by email toJasmeet_K._Seehra@omb.eop.gov,or by fax to (202) 395-7285.

3. This rule does not contain policies with Federalism implications as tha