(Source: Federal Register
, 24 Oct 2018.) [Excerpts.]
83 FR 53742-53793: Wassenaar Arrangement 2017 Plenary Agreements Implementation; Final Rule
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: The Bureau of Industry and Security (BIS) maintains, as part of its Export Administration Regulations (EAR), the Commerce Control List (CCL), which identifies certain items subject to Department of Commerce jurisdiction. This final rule revises the CCL, as well as corresponding parts of the EAR, to implement changes made to the Wassenaar Arrangement List of Dual-Use Goods and Technologies (WA 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 2017 WA Plenary meeting. The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability. This rule harmonizes the CCL with the agreements reached at the 2017 Plenary meeting by revising Export Control Classification Numbers (ECCNs) controlled for national security reasons in each category of the CCL. This rule also makes other associated changes to the EAR and makes a correction.
This rule is effective October 24, 2018. …
* SUPPLEMENTARY INFORMATION: … The Wassenaar Arrangement
(Wassenaar or WA) on Export Controls for Conventional Arms and Dual-Use Goods and Technologies is a group of 42 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 plenary meetings. Participating States are charged with implementing the agreed list changes as soon as possible after approval. The United States’ implementation of WA list changes ensures U.S. companies have a level playing field with their competitors in other WA Participating States.
The changes in this rule, which reflect the changes to the WA control lists that were approved at the December 2017 WA Plenary meeting, update the corresponding items listed in the EAR, and reflect the most recent changes in technologies and conditions. Unless explicitly discussed below, the revisions made by this rule will not impact the number of license applications submitted to BIS.
Revisions to the Commerce Control List Related to WA 2017 Plenary Agreements
Revises (50) ECCNs: 0A617, 0A919, 1A002, 1C001, 1C002, 1C007, 1C010, 1C608, 2A001, 2B001, 2B006, 2B007, 2B008, 2E003, 3A001, 3A002, 3B001, 3B002, 3C002, 3C005, 3C006, 3C992, 3E001, 4A003, 4A004, 4D001, 4E001, 5A001, 5A002, 5D002, 5E002, 6A002, 6A003, 6A004, 6A005, 6A008, 6A203, 6D003, 6D991, 6E001, 6E002, 6E201, 7A006, 7E004, 9A002, 9A004, 9D001, 9D002, 9D004, and 9E003.
License Exception eligibility additions: 3A001.i (GBS).
ECCN Removals: 6A990 and 6E990.
ECCN Correction: 3A991.
ECCN change to maintain NP controls: 2B206.
Category 0–Nuclear Materials, Facilities, and Equipment [and Miscellaneous Items] …
Category 1–Special Materials and Related Equipment, Chemicals, “Microorganisms”, and “Toxins” …
Category 2–Materials Processing …
Category 3–Electronics …
Category 4–Computers …
Category 5–Part 1–“Telecommunications” …
Category 5–Part 2–“Information Security” …
Category 6–Sensors and Lasers …
Category 7–Navigation and Avionics …
Category 9–Aerospace and Propulsion …
Part 772–Definitions of Terms as Used in the Export Administration
This rule removes 37 definitions from Sec. 772.1 and adds them to the ECCNs where they are used. According to the WA drafting guidelines, if a term is only used in a single ECCN, then the definition must be located in a Technical Note close to where that term is used. However, if the term is separated by many subparagraphs, then the definition may be located in the Definitions section of the WA List. The following 37 definitions are removed from part 772, because they are only used within a single ECCN: Automatic target tracking, carbon fiber preforms, commingled, comminution, compound rotary table, deformable mirrors, direct acting hydraulic pressing, effective gram, electronically steerable phased array antenna, flight control optical sensor array, flight path optimization, frequency mask trigger, frequency synthesizer, gas atomization, geographically dispersed, hot isostatic densification, linearity, main storage, mechanical alloying, melt extraction, melt spinning, neural computers, optical computer, plasma atomization, power management, previously separated, primary flight control, real-time bandwidth, resolution, rotary atomization, settling time, splat quenching, systolic array computer, transfer laser, vacuum atomization and variable geometry airfoils. The following definitions are revised for reasons stated either in the Federal Register instruction or under an ECCN where the term is used: Compensation systems, cryptographic activation, and user-accessible programmability. Two terms used in ECCNs 3A001 and 3A002 related to Analog-to-Digital Converters (ADC) are added to Sec. 772.1. The term “sample rate”, which is used in both ECCN 3A001 and 3A002, is added to Sec. 772.1. The definition “steady state mode” is moved from Technical Note 2 to 9E003.a.5 to Sec. 772.1 because it is now also used in a new parameter for `marine gas turbine engines’ in ECCN 9A002, as well as in Technical Notes in 9E003.a.2.d and 9E003.a.5. The Category 5–Part 2 definition “cryptographic activation” is amended by adding the word “specifically” before “activates or enables”, and taking the word “secure” out of the definition, to fit with the changes being made in the control list entries that refer to this definition (ECCNs 5A002.b, 5D002.b and 5E002.b).
Supplement No. 6 to Part 774–Sensitive List
Paragraph (1)(i), ECCN 1A002, is amended by narrowing the scope from all of ECCN 1A002 to only subparagraph a.1 ” “Composite” structures or laminates made from an organic “matrix” and “fibrous or filamentary materials” specified by 1C010.c or 1C010.d”, because the rest of the items in ECCN 1A002 do not warrant control on the Sensitive List as they are not key technologies. This revision will minimally affect the annual number of Wassenaar reports to BIS.
Paragraph (2)(i)–ECCN 2D001, (ii)–ECCN 2E001, and (iii)–ECCN 2E002 are simplified and restructured for easier understanding and compliance. The revisions also focus the Sensitive List entries for software and technology for machine tools having a unidirectional repeatability at 0.9 microns. For machine tools having no variations specified at 0.9 microns, there is no change to the thresholds.
Supplement No. 7 to Part 774–Very Sensitive List
Paragraph (1)(i), ECCN 1A002, is amended by narrowing the scope from subparagraph .a to subparagraph a.1 (“Composite” structures or laminates made from an organic “matrix” and “fibrous or filamentary materials” specified by 1C010.c or 1C0010.d), because the rest of the items in ECCN 1A002.a do not warrant control on the Sensitive List as they are not key technologies. It is estimated that this will minimally affect the annual number of Wassenaar reports to BIS.
Paragraphs (3)(iv), ECCN 6A001.a.2.c, and (3)(vi), ECCN 6A002.a.2.f, are amended by replacing the phase “user accessible programmability” with “user-accessible programmability” to add a hyphen for correctness.
Section 740.16 Additional Permissive Reexports (APR)
License Exception APR is amended to remove a reference to ECCN 6A990 in paragraphs (a)(2) and (b)(2)(v), because ECCN 6A990 is removed from the CCL by this rule. ROICs are now specified in 6A002.f.
Section 740.17 Encryption Commodities, Software and Technology (ENC)
License Exception ENC is corrected to replace a reference to 5D002.d with a reference to 5D002.b in the Note to paragraph (b)(2) and in paragraph (b)(3)(iv).
Section 740.20 License Exception Strategic Trade Authorization (STA)
License Exception STA is amended to remove reference to ECCNs 6A990 and 6E990 from paragraph (b)(2)(x), because these ECCNs are removed from the CCL. ROICs are now specified in 6A002.f and ROIC technology is specified in ECCNs 6E001 and 6E002.
Section 742.6 Regional Stability
Paragraph (b)(1)(ii) is amended by removing reference to ECCN 6E990, because this ECCN is removed by this rule. ROIC technology is now controlled under ECCNs 6E001 and 6E002.
Section 744.9 Restrictions on Exports, Reexports, and Transfers (In-Country) of Certain Cameras, Systems, or Related Components
Section 744.9 is amended by removing reference to ECCN 6A990 from paragraphs (a) and (b), because this ECCN is removed from the CCL. ROICs are now controlled under ECCN 6A002.f. …
Shipments of items removed from license exception eligibility or eligibility for export, reexport or transfer (in-country) 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 October 24, 2018, pursuant to actual orders for exports, reexports and transfers (in-country) 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, reexported or transferred (in-country) before December 24, 2018. Any such items not actually exported, reexported or transferred (in-country) before midnight, on December 24, 2018, require a license in accordance with this final rule. …
Dated: October 4, 2018.
Richard E. Ashooh, Assistant Secretary for Export Administration.