
[Federal Register Volume 81, Number 182 (Tuesday, September 20, 2016)]
[Rules and Regulations]
[Pages 64655-64692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21544]



[[Page 64655]]

Vol. 81

Tuesday,

No. 182

September 20, 2016

Part III





Department of Commerce





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 Defense Acquisition Regulations System





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15 CFR Parts 730, 734, 738, et al.





Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal 
of Foreign National Review Requirements, and Information Security 
Updates; Final Rule

  Federal Register / Vol. 81 , No. 182 / Tuesday, September 20, 2016 / 
Rules and Regulations  

[[Page 64656]]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730, 734, 738, 740, 742, 743, 748, 770, 772, and 774

[160217120-6120-01]
RIN 0694-AG85


Wassenaar Arrangement 2015 Plenary Agreements Implementation, 
Removal of Foreign National Review Requirements, and Information 
Security Updates

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 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's 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 2015 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. This rule harmonizes the CCL with 
the changes made to the WA List at the Plenary by revising Export 
Control Classification Numbers (ECCNs) controlled for national security 
reasons in each category of the CCL, as well as making other associated 
changes to the EAR.
    The changes to the WA List include raising the Adjusted Peak 
Performance (APP) for high performance computers. The President's 
report for High Performance Computers was sent to Congress on June 1, 
2016, to set forth the new APP in accordance with the National Defense 
Authorization Act (NDAA) for FY1998.
    This rule also makes changes to the EAR that were not agreed to at 
the WA Plenary. APP parameters are amended in several places in the EAR 
by this rule, such as APP parameters in the de minimis rules, License 
Exception APP, and related reporting requirements. BIS is also updating 
license requirements and policies associated with Category 5--Part 2, 
including revising Export Control Classification Numbers 5A992, 5D992 
and 5E992. In addition, this rule removes the Foreign National Review 
requirement associated with deemed exports under License Exceptions APP 
and CIV.

DATES: This rule is effective: September 20, 2016.

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 202-482-2440 or by email: 
Sharron.Cook@bis.doc.gov.
    For technical questions contact:

Categories 0, 1 & 2: Michael Rithmire at 202-482-6105
Category 3: Brian Baker at 202-482-5534
Categories 4 & 5: Information Technology and Control Division 202-482-
0707
Category 6 (optics): Chris Costanzo at 202-482-0718
Category 6 (lasers): Mark Jaso at 202-482-0987
Category 6 (sensors and cameras): John Varesi 202-482-1114
Category 8: Michael Tu 202-482-6462
Categories 7 & 9: Daniel Squire 202-482-3710 or Reynaldo Garcia 202-
482-3462
Category 9x515 (Satellites): Mark Jaso at 202-482-0987 or Reynaldo 
Garcia at 202-482-3462

SUPPLEMENTARY INFORMATION: The Supplementary Information is separated 
into four parts:

Part I--Wassenaar Arrangement Agreement Implementation;
Part II--Information Security Update and Simplification;
Part III--High Performance Computer Adjusted Peak Performance (APP) 
changes; and
Part IV--Removal of the Foreign National Review (FNR) procedure.

    Please note that a particular part of the EAR may be affected by 
more than one of these Parts and the supplementary information in that 
Part of the summary will only pertain to the revisions related to that 
Part.

Part I--Wassenaar Arrangement Agreement Implementation

Background

    The Wassenaar Arrangement (Wassenaar or 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 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.
    Unless otherwise indicated, the changes to the EAR described below 
are made in order to implement changes to the WA control lists approved 
at the December 2015 Plenary meeting.

Revisions to the Commerce Control List Related to WA Agreements

    Revises (58) ECCNs: 0A617, 1A001, 1A002, 1A004, 1A613, 1C001, 
1C002, 1C006, 1C008, 1C009, 1C608, 1E001, 1E002, 2B001, 2B006, 3A001, 
3A002, 3A101, 3A292, 3B001, 3D001, 3E002, 4A001, 4A003, 4D001, 4E001, 
5A001, 5B001, 5D001, 5E001, 5A002, 5B002, 5D002, 5E002, 6A001, 6A002, 
6A003, 6A004, 6A005, 6A007, 6A008, 6B004, 6B007, 6C005, 6E003, 7A003, 
7A004, 7A008, 7B001, 7B002, 7E004, 8A001, 8A002, 9A001, 9A004, 9A012, 
9B001, and 9E003.
    Adds (2) ECCNs: 5A003 and 5A004.
    License Exception eligibility additions: 3A002.h (LVS $5,000, GBS, 
CIV), 5A003 (GOV), 5E002 (TMP)
    License Exception eligibility removals: 3B001.c (CIV), 4A003.e 
(GBS, APP, CIV), 5A004 (formerly 5A002.a.2) (GOV), 8A002.e.2 (GBS, 
CIV).

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

0A617 Miscellaneous ``equipment,'' materials, and Related Commodities

    ECCN 0A617 is amended by adding double quotes around the term 
``laser'' in paragraph (8) of the Related Controls paragraph in the 
List of Items Controlled section to clarify the entry and to indicate 
this is a term defined in Part 772 of the EAR.

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

1A001 ``Parts'' and ``components'' Made From fluorinated Compounds

    ECCN 1A001 is amended by removing and reserving paragraph .b and 
removing paragraph .c from the Items paragraph of the List of Items 
Controlled

[[Page 64657]]

section. Paragraph .b controlled piezoelectric polymers and copolymers, 
made from vinylidene fluoride (CAS 75 38 7) materials and paragraph .c 
controlled seals, gaskets, valve seats, etc. made from fluoroelastomers 
and specially designed for ``aircraft,'' aerospace or missile use. 
These types of polymers/copolymers and seals/gaskets were controlled 
because it was thought that their fluorine content gave them high 
temperature and chemical resistance. After much testing, this has 
proven not to be the case, and therefore the need to control them as a 
strategic good no longer exists.

1A002 ``Composite'' Structures or Laminates

    ECCN 1A002 is amended by adding double quotes around the term 
``composite'' in the introductory text of Note 1 following paragraph 
.b.2 in the Items paragraph of the List of Items Controlled section, to 
indicate this is a term defined in Part 772 of the EAR.

1A004 Protective and Detection Equipment and ``components''

    ECCN 1A004 is amended by revising Items paragraphs .a.1, .b.1, and 
.c.1 by removing the phrase ``adapted for use in war'' and adding 
single quotes around the remaining phrase, `biological agents', because 
the former articulation did not describe the scope of control 
accurately. This rule narrows the scope of control by adding Technical 
Note 3, which defines biological agents. Now, only biological agents 
and equipment that are specially designed or modified to provide 
protection from or detect biological agents as defined in the technical 
note are controlled, instead of all biological agents, protection, and 
detection equipment that are adapted for use in war.

1A613 Armored and Protective ``equipment'' and Related Commodities

    ECCN 1A613 is amended by revising Items paragraph .c by adding 
``specially designed,'' which narrows the scope, but also adding to the 
list of control ``liners, or comfort pads therefor.'' This revision 
stems from the WA agreement for Wassenaar Arrangement Munitions List 
(WAML) item 13.c, which deleted the vague term ``components,'' and 
moved the items listed in the id est (i.e.) that included ``helmet 
shell, liner and comfort pads'' into the main body of the sentence. WA 
also agreed to add a Nota Bene, which this rule adds after Item 
paragraph .y.1, to alert people to the fact that other components and 
accessories for helmets may be controlled under other ECCNs on the CCL 
or on the USML. The term ``specially designed'' was already in the text 
of ML 13.c and for consistency is added to 1A613.c.

1C001 Materials ``specially designed'' for Use as Absorbers of 
Electromagnetic Waves, or Intrinsically Conductive Polymers

    ECCN 1C001 is amended by adding double quotes around the term 
``laser'' in two places within the Note to 1C001.b to indicate this is 
a term defined in Part 772 of the EAR.

1C002 Metal Alloys, Metal Alloy Powder and Alloyed Materials

    ECCN 1C002 is amended by revising the Note at the top of the Items 
paragraph by adding the words ``specially formulated'' and replacing 
the word ``substrates'' with ``purposes.'' This revision clarifies what 
is described in the Note as not being controlled in ECCN 1C002, which 
enhances the effective control of the items that remain in this ECCN.

1C006 Fluids and Lubricating Materials

    ECCN 1C006 is amended by removing and reserving Items paragraph .a, 
because the hydraulic fluids specified in 1C006.a are either not in use 
any longer or are being phased out because most hydraulic fluids in use 
today are commercially available synthetic oil.

1C008 Non-Fluorinated Polymeric Substances

    ECCN 1C008 is amended by revising Technical Note 1 at the end of 
the Items paragraph to add 1C008.f (Polybiphenylenethersulphone) 
materials to the list of materials to which `glass transition 
temperature (Tg)' applies in order to clarify the method of determining 
`Tg' for materials specified by 1C008.f.

1C009 Unprocessed Fluorinated Compounds

    ECCN 1C009 is amended by removing and reserving paragraph .a 
(copolymers of vinylidene fluoride. . .), which no longer represents 
militarily critical materials.

1C608 Energetic Materials and Related Commodities

    ECCN 1C608 is amended by replacing the double quotes with single 
quotes around the term `controlled materials' in the Related 
Definitions paragraph because the term is not defined in Section 772.1 
of the EAR or on the WA List but the definition is included in the 
Related Definitions paragraph. The WA definition for `propellant' is 
added to the Related Definitions paragraph, so that the definition will 
be applied as applicable to items controlled under 1C608. Single quotes 
are added around the term `controlled materials' in Items paragraphs .c 
through .h, .j, and .k to indicate the local definition in the Related 
Definitions paragraph. Single quotes are also added around the terms 
`single base,' `double base,' `triple base,' `sheetstock,' and `carpet 
rolls,' because these terms are defined in the Technical Notes 
following Items paragraph .a.2. The Note below Items paragraph .a.2 to 
Technical Notes is revised, because definitions of terms belong in 
Technical Notes, while Notes are reserved for clarifying the scope of 
controls in the Items paragraph. Single quotes are added around the 
term `propellant' in Items paragraphs .a and .n, as well as in the Note 
and Technical Notes below Items paragraph .a.2. Double quotes are added 
around the term ``pyrotechnic'' in Items paragraphs .j and .n to 
indicate a definition in Part 772 and for consistency with the WA. 
Single quotes are added around the term `mixture' to indicate the 
addition of a Technical Note at the end of the Items paragraph that 
defines the term. CAS numbers are added to Note 1 and 2 for consistency 
with the WA List.

1E001 ``Technology''

    ECCN 1E001 is amended by removing reference to ``1A001.b and 
1A001.c'' in the Heading and in the first NS paragraph in the table of 
the License Requirements section because this rule removes and reserves 
these paragraphs.

1E002 Other ``technology''

    ECCN 1E002 is amended by adding double quotes around the term 
``aircraft'' in the Note to 1E002.f to indicate this is a term defined 
in Part 772 of the EAR.

Annex to Category 1--List of Explosives

    The Annex to Category 1 is amended by replacing the period with a 
semicolon in entry 48, because a new entry 49 is added. Entry 49 is 
added to list ``BTNEN (Bis(2,2,2-trinitroethyl)-nitramine) (CAS 19836-
28-3).''

Category 2--Materials Processing

2B001 Machine Tools and Any Combination Thereof

    ECCN 2B001 is amended by revising Items paragraphs .a, .b.1 and 
.b.2.a. The parameters for machine tools for turning and milling are 
revised to better align with the Unidirectional Positioning 
Repeatability (UPR) parameter that was implemented by WA in 2015. 
Because UPR value is generally proportional to the travel length of 
axis, WA agreed to set different control values depending on the travel 
length of machine tools. In

[[Page 64658]]

addition, Note 2 is added to clarify that 2B001.a does not apply to 
certain bar machines (Swissturn), because bar machines (Swissturn) are 
one of the typical examples of machine tools that are classified as 
controlled items even when their positioning control performances are 
not as precise as the other types of controlled machine tools.

2B006 Dimensional Inspection or Measuring Systems, Equipment, and 
``electronic assemblies''

    ECCN 2B006 is amended by revising the NP Column 1 paragraph in the 
License Requirements table because the revision to Items paragraph .b 
made by this rule will make the parameters inconsistent with the 
Nuclear Suppliers Group list. This rule revises Items paragraph b.1.c 
in the List of Items Controlled section to adjust the performance 
threshold to be consistent with the current lithography tool 
specification 3B001.f.1. Also, this rule revises the Note following the 
introductory Items paragraph b.1 to point out that the controls for 
optical-encoders are found in 2B006.b.1.c. Double quotes are added 
around the term ``laser'' in the Note to Items paragraph .b.2 to 
indicate this is a term defined in Part 772 of the EAR.

Category 3--Electronics

3A001 Electronic Items

    ECCN 3A001 is amended by revising the Heading to better articulate 
the scope of control in this ECCN. This rule revises Items paragraph 
.a.5.a.2 by increasing the output rate parameter to 500 million words 
per second for 10 bits or more but less than 12 bits, based on the 
advances in the technology since the last threshold adjustment. For 
Items paragraphs .a.5.a.3 through .a.5.a.5, the resolution breakout is 
changed from a resolution of ``12 bit'' to ``12 bit or more, but less 
than 14 bit,'' ``more than 12 bit but equal to or less than 14 bit'' is 
changed to ``14 bit or more, but less than 16 bit,'' and ``resolution 
of more than 14 bit'' is changed to ``resolution of 16 bit or more.'' 
The output rates are also changed for .a.5.a.4 to ``14 bit or more, but 
less than 16 bit'' from 125 to 250 million words per second and for 
.a.5.a.5 ``16 bit or more'' from 20 to 65 million words per second.
    The introductory text to 3A001.b is amended by replacing the word 
``components'' with ``items'' to better describe the scope of this 
paragraph. The energy density is revised from ``300 Wh/kg'' to ``350 
Wh/kg'' for Items paragraph 3A001.e.1.b ``secondary cells.''
    Double quotes are added to the term ``accuracy'' in Items paragraph 
3A001.f to indicate this term is defined in Part 772 of the EAR, and 
the ``'' before ``1.0 second of arc'' is deleted, because 
the ``'' symbol made the parameter unclear.

3A002 General Purpose ``electronic assemblies,'' Modules and Equipment

    ECCN 3A002 is amended by revising the Heading to better reflect the 
scope of the entry.
    The License Requirements section is amended by adding Missile 
Technology (MT) controls, because the MT control for 4A003.e 
``Equipment performing analog-to-digital conversions exceeding the 
limits in 3A001.a.5,'' is moved to 3A002.h. The National Security (NS) 
and Anti-terrorism (AT) controls that apply to 4A003.e are already 
present in 3A002, as NS and AT apply to the entire entry of 3A002. The 
eligibility paragraphs for License Exceptions LVS ($5,000), GBS and CIV 
are amended by adding 3A002.h (unless controlled for MT), in order to 
maintain the license exception eligibility this equipment had under 
4A003.e. ECCN 3A101 is added to the Related Controls paragraph in the 
List of Items Controlled section to reference the overlapping MT 
control of 3A002.h. Items paragraph a.5 ``waveform digitizers and 
transient recorders'' is removed and reserved, because the items are 
now controlled under the newly added Items paragraph 3A002.h. The Nota 
Bene under a.5 is revised to point to the new location of the control.
    Items paragraph 3A002.a.6 ``digital instrumentation data recorders 
...'' is amended by revising the description of the scope to read 
``digital data recorders.'' ``Using magnetic disk storage techniques'' 
is deleted because it is replaced by disk or solid-state drive memory 
as modern digital data recorders can use either or both memory storage 
technologies. The sample data rate parameter is deleted and continuous 
throughput is increased to avoid capturing predominantly commercial 
items. The phrase ``sustained continuous throughput'' is added to 
clearly distinguish from ``peak data recording rate.'' Technical Notes 
for continuous throughput rate (previously included under 3A002.a.5) 
are added with the deletion of the term ``mass'' in Technical Note 3. 
These parameters more clearly delineate those products that are of 
military concern.
    Lastly, Items paragraph 3A002.h ``Electronic assemblies, modules or 
equipment that perform analog-to-digital conversions,'' along with 
specific parameters, is added to the List of Items Controlled section 
in order to consolidate where this equipment is controlled and 
distinguish it from the 3A002.a.6 ``digital instrumentation data 
recorder systems'' controls.

3A101 Electronic Equipment, Devices, ``parts,'' and ``components,'' 
Other Than Those Controlled by 3A001

    ECCN 3A101 is amended by replacing the reference to 4A003.e with 
3A002.h, as well as updating the description of equipment in the 
Related Controls paragraph in the List of Items Controlled section.

3A292 Oscilloscopes and Transient Recorders

    ECCN 3A292 is amended by replacing the reference to 3A002.a.5 with 
3A002.h in the Heading, because of the new location of these controls.

3B001 Equipment for the Manufacturing of Semiconductor Devices or 
Materials

    ECCN 3B001 is amended by revising the CIV paragraph in the List 
Based License Exceptions section to remove paragraph .c ``anisotropic 
plasma dry etching equipment'' because WA has agreed to remove and 
reserve this paragraph as a result of a foreign availability 
determination.
    Items paragraph .e.1 ``interfaces for wafer input and output'' in 
the List of Items Controlled section is revised by removing the 
reference to 3B001.c, which is removed by this rule, and by adding 
references to 3B001.a.2 and a.3 to add specificity.
    Technical Note 1 is revised by removing the word ``etch,'' after 
Items paragraph .e.2, because etch equipment is deleted from 3B001.c.
    Items paragraph .f.2 is corrected by adding a Note because the Note 
was inadvertently removed by last year's WA implementation rule.
    Items paragraph .f.3, ``lithography equipment . . . specially 
designed for mask making,'' is revised and Items paragraph .f.4, 
``Equipment designed for device processing using direct writing 
methods,'' is added in the List of Items Controlled section to align 
the feature size metric for all lithography systems.

3D001 Software

    ECCN 3D001 is amended by replacing the reference to 3A002.g with 
3A002.h because 3D001 is supposed to control software specially 
designed for the development or production of equipment controlled by 
3A001.b to new 3A002.h The same revision is made to the National 
Security (NS) control paragraph in the License Requirements table of 
3D001. The eligibility paragraph of License Exception CIV is replaced

[[Page 64659]]

with N/A (Not Applicable), because 3B001.c, which was the only 
paragraph in the eligibility paragraph, is no longer controlled.

3E002 ``Technology'' . . . Other Than That Controlled in 3E001 for the 
``development'' or ``production'' of a ``microprocessor microcircuit,'' 
``micro-computer microcircuit'' and Microcontroller Microcircuit Core . 
. .

    ECCN 3E002 is amended by revising the CIV paragraph in the License 
Exception section to remove the Foreign National Review (FNR) 
Requirement. This removal is necessary to conform the entry with the 
removal of the FNR procedure from the EAR as part of this rule.
    The Technical Note in Items paragraph .a that revises `vector 
processor unit' by adding the phrase ``and vector registers of at least 
32 elements each'' to separate short-vectors from traditional 
supercomputer vectors.
    Items paragraph .c is amended by changing the phrase ``four 16-bit 
fixed-point multiply-accumulate results per cycle'' to ``eight 16-bit 
fixed-point multiply-accumulate results per cycle'' because updating 
the control threshold for Digital Signal Processors (DSPs) is 
consistent with advancements in digital signal processing technology.
    Prior to the publication of this rule, in the Note to paragraph 
3E002.c, the multimedia extension exemption only applied to digital 
signal processors even though it is also used in other processor types, 
such as in x86 processors. Therefore, in this rule, the exemption note 
is extended to apply to all entries under 3E002; specifically, the 
reference to 3E002.c is revised to read 3E002. In addition, this Note 
is enumerated as Note 1 and the existing Notes 1 and 2 are redesignated 
as Notes 2 and 3.

Category 4--Computers

    Note 3 to Category 4, which is a reminder that computers and 
related equipment that perform functions specified in Category 5--Part 
2 should be reviewed against Category 5--Part 2, is removed. This 
reminder appeared in several places throughout the Commerce Control 
List and is now a new note with the General Technology and Software 
Notes in Supplement No. 2 to part 774.

4A001 Electronic Computers and Related Equipment

    ECCN 4A001 is amended by revising the Related Controls paragraph in 
the List of Items Controlled section to remove the reminder to consider 
Category 5--Part 2 if the equipment performs or incorporates 
``information security'' functions as primary functions. WA decided to 
streamline the list by removing the many occurrences of this note and 
having it appear only with the General Technology and Software Notes, 
which in the EAR are located in Supplement No. 2 to part 774.

4A003 ``Digital Computers,'' ``electronic assemblies,'' and Related 
Equipment Therefor

    ECCN 4A003 is amended by removing and reserving 4A003.e ``Equipment 
performing analog-to-digital conversions exceeding the limits in 
3A001.a.5'' and adding a Nota Bene to point to the new location for the 
control in 3A002.h. The License Requirements section is revised by 
removing the Missile Technology control, which only applied to 4A003.e. 
Reference to 4A003.e is removed from the List Based License Exceptions 
section, specifically GBS, APP and CIV, and from Note 1 to Items 
paragraph .c. Reserved paragraphs .d through .f are now codified as a 
range of reserved paragraphs.
    The last listed item, ``Equipment designed for ``signal 
processing,'' in Note 1 (located at the beginning of the Items 
paragraph in the List of Items Controlled section) is removed as a 
conforming change tracking the removal of 4A003.e.
    The ``Adjusted Peak Performance'' (``APP'') for ``digital 
computers'' is raised from 8.0 to 12.5 Weighted TeraFLOPS (WT) in Items 
paragraph .b in the List of Items Controlled section. The Congressional 
notification requirement set forth in 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) provides 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 June 1, 2016 that establishes and provides justification 
for the 12.5 WT control level using the APP formula.

4D001 ``Software'' and 4E001 ``technology''

    ECCNs 4D001 and 4E001 are amended by removing NP from the Reason 
for Control paragraph and the sentence related to NP controls directly 
below the License Requirements table in the License Requirements 
section, as these references erroneously suggest that digital computer 
technology or software are controlled by the Nuclear Suppliers Group 
(NSG) for nonproliferation reasons and consequently require a license 
from BIS for Nuclear Proliferation (NP) reasons. Digital computer 
software and technology controls are not controlled by the NSG.
    The TSR paragraph in the List Based License Exceptions section is 
amended by revising the APP from 2.0 to 12.5 WT because of 
technological advances and in line with changes made elsewhere in this 
rule.
    The Special Conditions for STA paragraph is amended by revising the 
APP from 2.0 to 12.5 WT because of technological advances and in line 
with changes made elsewhere in this rule.
    Items paragraph .b.1 in the List of Items Controlled section is 
amended by revising the APP from 1.0 to 6.0 WT and in line with changes 
made elsewhere in this rule.

Category 5--Part 1--``Telecommunications''

    Category 5--Part 1 is amended by removing Nota Bene 2 (N.B.2) at 
the beginning of the Category and moving this Note to the General 
Technology and Software Notes in Supplement No. 2 to part 774.

5A001 Telecommunications Systems, Equipment, ``components'' and 
``accessories''

    ECCN 5A001.d ``electronically steerable phased array antennas'' is 
amended by dividing the operation frequency control parameter into four 
ranges and adding two new parameters ``effective radiated power (ERP)'' 
and ``effective isotropic radiated power (EIRP).'' The purpose of the 
revision is to focus or narrow the scope of control and release from 
control consumer ``WiGig'' products for indoor use. These ``WiGig'' 
products are used as home entertainment alternatives for HDMI cables. 
Electronically steerable phased array antennas (ESAs) are used in 
consumer products operating in the un-licensed ``60 GHz'' band (57-64 
GHz) and operate over short distances (~10 m) in-room. A typical 
installation would allow a laptop computer to send multi-media signals 
across a living room to an HD-TV.

5B001 Telecommunication Test, Inspection and Production Equipment, 
``components'' and ``accessories''

    ECCN 5B001 is amended by removing and reserving Items paragraph 
.b.2.b ``performing optical amplification using Praseodymium Doped 
Fluoride Fiber Amplifiers (PDFFA)'' because PDFFA are not widely used 
in the communications industry due to low efficiency and compatibility 
problems with silica optical fiber-based communications systems. This 
rule also revises Item paragraph .b.4 by raising

[[Page 64660]]

the level for ``radio equipment employing Quadrature-Amplitude-
Modulation (QAM) techniques'' from 256 to 1,024 on the basis of 
technological advances in QAM techniques.

5D001 ``Software''

    ECCN 5D001 is amended by revising Items paragraph .d.4 by raising 
the level for radio equipment employing Quadrature-Amplitude-Modulation 
(QAM) techniques'' from 256 to 1,024 because of technological advances 
in QAM techniques.

5E001 ``Technology''

    ECCN 5E001 is amended by removing Items paragraph .c.2.b 
``performing optical amplification using Praseodymium Doped Fluoride 
Fiber Amplifiers (PDFFA)'' because PDFFA are not widely used in the 
communications industry due to low efficiency and compatibility 
problems with silica optical fiber-based communications systems. The 
Note to Items paragraph .c.2.c is amended by removing the phrase 
``specially designed'' because the definition of ``specially designed'' 
does not apply to technology and this removal harmonizes the CCL with 
the WA List. This rule also revises Items paragraph .c.4.a by raising 
the level for radio equipment employing Quadrature-Amplitude-Modulation 
(QAM) techniques'' from 256 to 1,024 on the basis of technological 
advances in QAM techniques.

Category 5--Part 2--``Information Security''

    Category 5--Part 2 is amended by removing and reserving Note 1 and 
moving the control status Note to the General Technology and Software 
Notes in Supplement No. 2 to part 774. BIS is making editorial 
revisions to the phrase ``Category 5, part 2'' in Notes 2 and 4 by 
changing it read ``Category 5--Part 2.'' In addition, Note 2 is revised 
by changing the phrase ``encryption products'' to read ``information 
security'' to make the words consistent with the section heading. The 
introductory text to Note 3 and the Technical Note to paragraph .b.4 of 
Note 3 are revised to reference two newly added ECCNs: 5A003 and 5A004. 
Paragraph 1.b in the Note to the Cryptography Note is amended by adding 
a sentence to the end to clarify that a simple price enquiry is not 
considered to be a consultation. An undesignated section title is added 
under the Product Group A title to read ``Cryptographic ``information 
security.'' ''

5A002 ``Information security'' Systems, Equipment and ``components''

    ECCN 5A002 is amended by revising the Heading to remove the word 
``therefor.'' Related Controls paragraph 2 is removed to correspond 
with the revision of ECCNs 5A992 and 5D992 and a new paragraph 2 is 
added to alert exporters to a related United States Munitions List 
(USML) control for 5A002.d and .e, and Note 3 paragraph is revised to 
harmonize with changes in this rule. The Items paragraph of 5A002 is 
restructured, including by moving some of the items to newly added 
ECCNs. The EI control is moved to the License Requirements Table and is 
revised to replace the referenced paragraphs ``.a.1, .a.2, .a.5, .a.6 
and .a.9'' with ``entire entry.'' The Note in the beginning of the 
Items paragraph is moved to the end of Items paragraph .a and amended 
to only pertain to Items paragraph .a.
    5A002.a is amended by adding the word ``cryptographic'' before the 
term ``information security'' to better describe the scope of Items 
paragraph .a. The Technical Note to 5A002.a is amended by adding the 
phrase ``In Category 5--Part 2'' to clarify the scope of the Technical 
Note. Items paragraph .a.2 ``designed or modified to perform 
`cryptanalytic functions''' is removed and reserved because this 
control is now located in 5A004.a. A Nota Bene is added to point to the 
new location of this control. Reserved Items paragraph .a.3 is removed.
    The 5A002 exclusion Note is amended by revising ``5A002'' to read 
``5A002.a'' in the introductory text. The sentence stating, ``However, 
these items are instead controlled under 5A992.'' is removed from the 
introductory text of the Note. 5A992.a and .b are removed by this rule; 
therefore, items meeting the exclusion Note are now designated EAR99. 
The reference to new ECCNs 5A003 and 5A004 is added to paragraph 
(a)(1)(a) of the Technical Note. Many of the paragraphs in this Note 
are moved. See below for a guide to the reordering of the paragraphs. 
Paragraph (b) (former paragraph (d)) of the Technical Note is amended 
by removing ``The term'' and clarified by adding ``in 5A002 Note b.'' 
Paragraph (g) (former paragraph (j)) introductory text is amended by 
removing all the references to paragraphs in 5A002. Paragraph (h) 
(former paragraph (k)), is revised by correcting the format of the 
reference to Category 5--Part 2. Paragraph (j)(2)(a) (former paragraph 
(m)(2)(a)), is amended by replacing the word ``to'' with ``in.''
    The following is a guide to the movement of the paragraphs within 
the exclusion Note:
(b), which was ``reserved,'' is now former paragraph (d)
(c), which was ``reserved,'' is former paragraph (e)
(d) is former paragraph (f)
(e) is former paragraph (g)
(f) is former paragraph (i)
(g) is former paragraph (j)
(h) which was ``reserved'' is former paragraph (k)
(i) is former paragraph (l)
(j) is former paragraph (m)
(k), (l) and (m) are removed.

    Items paragraphs of ECCN 5A002.a.4, .a.5, .a.6, .a.8 and .a.9 are 
moved to the following new locations:

.a.4--5A003.b
.a.5--5A002.e
.a.6--5A002.d
.a.8--5A003.a
.a.9--5A002.c
    Items paragraph .a.7, ``Non-cryptographic information and 
communications technology (ICT) security systems and devices that have 
been evaluated and certified by a national authority to exceed class 
EAL-6 (evaluation assurance level) of the Common Criteria (CC) or 
equivalent,'' is removed because it is an obsolete certification.
    Items paragraph .b is revised by removing the phrase ``systems, 
equipment and components,'' because the Header already states what is 
included in the scope of the control.
    Category 5--Part 2 is amended by adding an undesignated title 
``non-cryptographic information security'' before newly added ECCN 
5A003.

5A003 ``Systems,'' ``equipment,'' and ``components,'' for non-
cryptographic ``information security,''

    ECCN 5A003 is added to control items formerly classified as 
5A002.a.8 in 5A003.a and formerly classified as 5A002.a.4 in 5A003.b. 
The same license requirements and license exceptions that applied to 
those paragraphs are added to 5A003.
    Category 5--Part 2 is amended by adding an undesignated title 
``defeating, weakening or bypassing information security'' before the 
newly added ECCN 5A004.

5A004 ``Systems,'' ``equipment,'' and ``components'' for Defeating, 
Weakening or Bypassing ``information security''

    ECCN 5A004 is added to control items formerly classified as 
5A002.a.2 with no change to the license requirements and license 
exceptions that formerly applied.

[[Page 64661]]

5B002 ``Information Security'' test, inspection, and ``production'' 
Equipment

    ECCN 5B002 is amended by adding references to ECCNs 5A003 and 5A004 
in Items paragraphs .a and .b.

5D002 ``Software''

    ECCN 5D002 is amended by moving the EI controls from the License 
Requirements Note to the License Requirement table in the License 
Requirements section. The Related Controls paragraph 1 is removed to 
correspond with the removal of paragraphs in ECCN 5A992 and 5D992, and 
paragraph 2 is revised to harmonize with other changes to encryption in 
this rule. The Note relating to publicly available encryption software 
is removed because this rule makes publicly available encryption source 
code not subject to the EAR after the notification requirement of Sec.  
742.15(b) has been fulfilled, as well as the corresponding publicly 
available encryption object code software. The EI controls are also 
revised by adding new ECCN 5A004. Items paragraphs .a and .c.1 are 
amended by adding new ECCNs 5A003 and 5A004.

5E002 ``Technology''

    ECCN 5E002 is amended by moving EI controls into the License 
Requirements table in the License Requirements section. Additionally, 
new ECCN 5A004 is added to the EI controls and to Note 2 in the License 
Requirements Notes in the License Requirements section. Items paragraph 
.a in the List of Items Controlled section is revised by adding new 
ECCNs 5A003 and 5A004.

Other EAR Revisions Corresponding to the Category 5--Part 2 
Restructuring

    ECCN 5A004 is added to License Exception GOV in Sec.  
740.11(a)(2)(iii) and (c)(3)(iii) to maintain the license exception 
restriction for items that have moved from ECCN 5A002 to ECCN 5A004. 
Despite the movement of ECCN 5A002 items to ECCN 5A003, ECCN 5A003 is 
not added because it contains items that are no longer controlled for 
EI reasons.
    The Entity List, Supplement No. 4 to part 744, is amended by 
replacing the reference ``5D002 or 5A002.'' with ``5A002, 5A004 or 
5D002.'' in the third column ``License Requirement,'' in the entry 
``Corporacion Nacional de Telecommunicaciones (CNT) . . .'' under 
Ecuador.

Category 6--Sensors and Lasers

6A001 Acoustic Systems, Equipment, and ``components''

    ECCN 6A001 is amended by replacing ``positioning accuracy'' with 
``determined position error'' in Items paragraphs .a.1.d.2 and .a.1.e.2 
in the List of Items Controlled section because this term better 
conveys the identified performance parameter of this equipment. Double 
quotes are added around the term ``accuracy'' in Items paragraphs 
.a.2.d.1, .b.1.b, and .b.2 in the List of Items Controlled section to 
indicate that this is a term defined in Part 772 of the EAR. This rule 
makes an editorial correction by replacing double quotes that were 
inadvertently removed around the term ``components'' in the Heading, 
introductory text of Items paragraphs a, a.1, a.1.d, a.2 and the Note 
to 6A001.a.2 in the List of Items Controlled section.

6A002 Optical sensors and equipment, and ``components'' Therefor

    ECCN 6A002 is amended by adding paragraph .d ``Thermopile arrays 
having less than 5,130 elements'' to exclusion Note 2 to 6A002.a.3 in 
the Items paragraph of the List of Items Controlled section. BIS is 
making this change because applying the definition of 'microbolometer 
arrays' in 6A002.a.3.f to thermopile arrays leads to the control of 
such devices; however, thermopile arrays would never reach the 
performance of microbolometer arrays.

6A003 Cameras, Systems, or Equipment, and ``components'' Therefor

    ECCN 6A003 is amended by removing paragraph (3) of the Related 
Controls paragraph in the List of Items Controlled section because the 
referenced paragraphs, 8A002.d.1 and .e, are removed by this rule. 
Related Controls paragraphs (4) and (5) are redesignated as (3) and 
(4).

6A004 Optical Equipment and ``components''

    ECCN 6A004 is amended by adding an exclusion Note to Items 
paragraph .a.3 in the List of Items Controlled section for mirrors 
``specially designed'' to direct solar radiation for terrestrial 
heliostat installations. Items paragraphs .d.2.a.3 and .d.2.b are 
revised by adding the word ``(better)'' after the word less for 
consistency and clarity, so people will understand that any measurement 
that is less than the specified parameter means the item is performing 
at better than the control level.

6A005 ``Lasers,'' ``components'' and Optical Equipment

    The Technical Note that follows Note 2 to 6A005.a.6.b in the Items 
paragraph of the List of Items Controlled section is amended by 
replacing the reference ``Note 2.a'' with ``Note 2 a.2'' to correct the 
reference. Items paragraphs .a.6.a.2 and .b.6.b.2 in the List of Items 
Controlled section are amended by raising the ``average output power'' 
from ``10'' to ``30'' W and ``10'' to ``50'' W. The main parameter of 
interest for industrial pulsed lasers is ``average output power.'' A 
higher average output power has a positive impact on productivity (due 
to higher repetition rates). For that reason, and in light of the 
technological progress in the field of industrial Laser Materials 
Processing (LMP) equipment, the average power is increased while the 
parameters ``pulse energy'' and ``peak power'' (which have a higher 
relevance for applications of concern) remain unchanged.
    The Note to 6A005.c.1 is moved below Items paragraph 6A005.c.1.b.
    An exclusion Note is added to Items paragraphs 6A005.d.1.d.1.d and 
6A005.d.1.d.2.d to exclude epitaxially-fabricated monolithic devices.
    Double quotes are added around the term ``laser'' in Items 
paragraphs .e.3, .e.3.c.1, .e.3.c.2, .g.1, .g.2, .g.3 and the Technical 
Note at the end of the Items paragraph to indicate that this is a term 
defined in Part 772 of the EAR.
    Double quotes are added around the term ``accuracy'' in Items 
paragraph f.3 to indicate that this is a term defined in Part 772 of 
the EAR.

6A007 Gravity Meters (gravimeters) and Gravity Gradiometers

    ECCN 6A007 is amended by adding double quotes around the term 
``accuracy,'' in three places (Items paragraphs .a, .b.1 and .b.2 in 
the List of Items Controlled section) to indicate that this is a term 
defined in Part 772 of the EAR.

6A008 Radar Systems, Equipment and Assemblies

    ECCN 6A008 is amended by adding double quotes around the term 
``accuracy'' in Items paragraph .a.2, adding double quotes around the 
term ``lasers'' in Items paragraph. j.3, and adding double quotes 
around the term ``aircraft'' in Note 2 of the Technical Notes at the 
end of the Items paragraph in the List of Items Controlled section. 
These quotes are added to indicate that the terms are defined in Part 
772 of the EAR.

[[Page 64662]]

6B004 Optical Equipment

    ECCN 6B004 is amended by revising Items paragraph 6B004.a to 
replace the symbol ``'' that precedes 0.1% with the phrase 
``equal to or better than'' to clarify that entry.

6B007 Equipment To Produce, Align, and Calibrate Land Based Gravity 
Meters With a Static ``accuracy'' of Better Than 0.1 mGal.

    ECCN 6B007 is amended by adding double quotes around the term 
``accuracy'' in the Heading to indicate that this is a term defined in 
Part 772 of the EAR.

6C005 ``Laser'' Materials

    ECCN 6C005 is amended by adding double quotes around the term 
``laser'' in Items paragraphs b.1 and b.2 in the List of Items 
Controlled section to indicate that this is a term defined in Part 772 
of the EAR.

6E003 Other ``technology''

    ECCN 6E003 is amended by adding double quotes around the term 
``accuracies'' in Items paragraph .d to indicate that the singular form 
of ``accuracy'' is a term defined in Part 772 of the EAR and revising 
the Items paragraph by moving all the topic headings out from the 
subparagraphs and reserving subparagraphs that do not have parameters 
at this time.

Category 7--Navigation and Avionics

7A003 `Inertial measurement equipment or systems'

    ECCN 7A003 is amended by removing the second paragraph in the 
Technical Note at the beginning of the Items paragraph of the List of 
Items Controlled section. Double quotes are added around the term 
``accuracies'' in Items paragraph .a; and double quotes are added 
around the term ``accuracy'' in Items paragraphs .b, .c.1, and .c.2 in 
the List of Items Controlled section to indicate that ``accuracy'' is a 
term defined in Part 772 of the EAR. Single quotes are replaced by 
double quotes around the term Circular Error Probable in the Items 
paragraph .a.1 and around the term's acronym CEP in Items paragraphs 
.a.1, .a.2, .a.3, and .b in the List of Items Controlled section 
because this term and its acronym are added to the definitions in Sec.  
772.1 of the EAR as part of this rule.

7A004 `Star trackers' and ``components'' Therefor

    ECCN 7A004 is amended by adding double quotes around the term 
``accuracy'' in the Items paragraph .a in the List of Items Controlled 
section to indicate that this is a term defined in Part 772 of the EAR.

7A008 Underwater Sonar Navigation Systems

    ECCN 7A008 is amended by adding double quotes around the term 
``accuracy'' in the Heading to indicate that this is a term defined in 
Part 772 of the EAR.

7B001 Test, Calibration, or Alignment Equipment

    ECCN 7B001 is amended by adding double quotes around the term 
``aircraft'' in paragraph (1) of the Related Definitions paragraph in 
the List of Items Controlled section to indicate that this is a term 
defined in Part 772 of the EAR.

7B002 Equipment ``specially designed'' To Characterize Mirrors for Ring 
``laser'' Gyros

    ECCN 7B002 is amended by adding double quotes around the term 
``accuracy'' in Items paragraphs .a and .b of the List of Items 
Controlled section because it is a defined term.

7E004 Other ``technology''

    ECCN 7E004 is amended by adding double quotes around the term 
``accuracy'' in Items paragraph .a.7 and adding double quotes around 
the term ``aircraft'' in the Items paragraphs .b.1, .b.7.b.4, .b.8.a 
and .b.8.b to indicate that these terms are defined in Part 772 of the 
EAR. The word ``directional'' is replaced by ``direction'' in the Items 
paragraph .c.2 of the List of Items Controlled section for clarity and 
consistent with the term ``circulation-controlled direction control 
systems,'' as defined in Part 772 of the EAR.

Category 8--Marine

8A001 Submersible Vehicles and Surface Vessels

    ECCN 8A001 is amended by revising the Related Controls paragraph in 
the List of Items Controlled section by removing reference to Category 
5--Part 2 because the applicability of Category 5--Part 2 to other 
categories is stated in a new Note in the General Technology and 
Software Notes in Supplement No. 2 to part 774. Double quotes are added 
around the term ``accuracy'' in Items paragraph .e.2 of the List of 
Items Controlled section to indicate that this is a term defined in 
Part 772 of the EAR.

8A002 Marine Systems, Equipment, ``parts'' and ``components''

    ECCN 8A002 is amended by removing reference to 8A002.e.2 from the 
GBS and CIV eligibility paragraphs in the List Based License Exception 
section because 8A002.e is removed and reserved. Items paragraph .d 
``underwater vision systems'' is revised by removing equipment 
specified in d.1 but no longer in use and redesignating d.2 as .d. 
Items paragraph .e ``photographic still cameras ``specially designed'' 
or modified for underwater use below 150 m . . .'' in the List of Items 
Controlled section is removed and reserved because modern digital 
photographic equipment and separate underwater housings have replaced 
underwater film format cameras.

Category 9--Aerospace and Propulsion

9A001 Aero Gas Turbine Engines

    ECCN 9A001 is amended by adding double quotes around the term 
``aircraft'' in paragraph b. of Note 1 to Items 9A001.a and in Items 
paragraph .b in the List of Items Controlled section to indicate that 
this is a term defined in Part 772 of the EAR.

9A004 Space Launch Vehicles and ``spacecraft,'' ``spacecraft buses,'' 
``spacecraft payloads,'' ``spacecraft'' On-Board Systems or Equipment, 
and Terrestrial Equipment

    ECCN 9A004 is amended by replacing the reference to ``5A002.a.5, 
5A002.a.9'' with ``5A002.c, 5A002.e'' in Items paragraph .d in the List 
of Items Controlled section to reflect the revisions this rule makes to 
ECCN 5A002.

9A012 Non-Military ``Unmanned Aerial Vehicles,'' (``UAVs''), Unmanned 
``airships,'' Related Equipment and ``components''

    ECCN 9A012 is amended by removing the exclusion Note for model 
aircraft or model ``airships'' at the end of the Items paragraph in the 
List of Items Controlled section because these commodities are not 
within the scope of ECCN 9A012.

9B001 Equipment, Tooling or Fixtures, ``specially designed'' for 
Manufacturing Gas Turbine engine blades, vanes or ``tip shrouds''

    ECCN 9B001 is amended by revising Items paragraph .b in the List of 
Items Controlled section to include combined cores and shells (moulds) 
because it is now possible, through the use of Additive Manufacturing, 
to produce a single shell (mould) containing a core in position.

9E003 Other ``technology''

    ECCN 9E003 is amended by adding double quotes around the term 
``aircraft'' in the following five places: Two places in Related 
Controls paragraph (2) in the List of Items Controlled section; in the 
Note to

[[Page 64663]]

9E003.h in the List of Items Controlled section; in Items paragraph .j; 
and in the Nota Bene that follows 9E003.j in the List of Items 
Controlled section. These double quotes are added to indicate that this 
is a term defined in Part 772 of the EAR.

Part 748--Applications

    Supplement No. 7 to part 748 ``Validated End User'' list is amended 
by removing the reference to 3B001.c in eight Chinese entities, because 
this paragraph of ECCN 3B001 is removed by this rule.
    Other changes to part 748 are described in two separate paragraphs 
below in relation to encryption updates and the removal of the foreign 
national review requirement.

Section 774.1 Introduction

    An explanation about the use of Chemical Abstracts Service (CAS) 
numbers in the Commerce Control List is added in new paragraph (e). 
This explanation comes from Note 2 of the Wassenaar Arrangement's 
Munitions List. The information is helpful for exporters when trying to 
classify chemicals on the CCL.

Supplement No. 2 to Part 774 ``General Technology and Software Notes''

    Supplement No. 2 to part 774 ``General Technology and Software 
Notes'' is amended by adding paragraph 3 ``General ``Information 
Security'' Note'' (GISN) to alert the public to consider Category 5--
Part 2 when classifying information security items or items with 
information security functions.

Supplement No. 6 to Part 774 ``Sensitive List''

    Supplement No. 6 to part 774 ``Sensitive List'' is amended by 
revising paragraphs (2)(i) ``2D001,'' (2)(ii) ``2E001,'' (2)(iii) 
``2E002,'' (4)(ii) ``4D001,''and (4)(iii) ``4E001'' to match the 
revisions made to corresponding ECCNs by this rule. These changes will 
affect Wassenaar reporting requirements found in Sec.  743.1.

Part 770--Item Interpretations

    Section 770.2 is amended by making editorial revisions to paragraph 
(l)(1), (l)(2) and (m) to align ECCN references to revisions made by 
this rule.

Part 772 Terms and Definitions (Related to WA agreements)

    Section 772.1 is amended by adding more categories to those 
associated with the terms ``accuracy'' and ``airship.'' The term 
``Circular Error Probable'' and its acronym ``CEP'' are added to the 
definitions in Sec.  772.1 because the term and its acronym are used 
more broadly than in one ECCN or subparagraph. The definition of 
``cryptography'' is revised by moving the definition of ``fixed'' to 
the Technical Notes of this term. The term ``FADEC'' is revised by 
adding the word ``systems,'' thus changing the term to ``FADEC 
systems.'' Other revisions to Part 772 that are not related to WA 
agreements are described later in this Supplementary Information.
    The term ``frequency switching time'' is revised to retain the 
relative value but tighten the tolerance from  0.05% to 
 0.1 part per million to account for challenges in making 
measurements using the wide tolerance of  0.05%. The 
revision also applies an absolute value for frequencies below 1 GHz, 
because the 0.1 parts per million metric necessitates the difficult 
task of resolving very small frequency differences at low frequencies.
    Category 7 is removed from the list of categories where ``Full 
Authority Digital Engine Control Systems'' is used.
    The category references for the term ``information security'' are 
revised by removing Cat 4, 5P1 and 8, and adding a reference to the 
newly added General ``Information Security'' Note (GISN).
    The term ``laser'' is revised to more closely link the 
amplification process with the observed coherencies in laser output.
    The term ``lighter-than-air vehicles'' is added to Sec.  772.1 
because of its use in ECCNs 2B352, 9A120, and 9A610.
    The term ``optical amplification'' is removed consistent with its 
removal from 5A991.b.5.e, 5B001.b.2.b, and 5E001.c.2.b, due to the 
term's association with a method of communication that is no longer in 
use.
    The terms ``propellants'' and ``pyrotechnic(s)'' are added to Sec.  
772.1 because they are used frequently in the EAR (propellants in 
1C608.a and .n and pyrotechnic(s) in ECCN 1C608.j and .n).
    The term ``source code'' is revised by adding Category 1 and 
Category 5--Part 2 to the categories where this term is used.
    This rule removes the term ``system tracks'' because it is not used 
in the EAR.

Part II--Information Security Update and Simplification

    In conjunction with the restructuring of Category 5--Part 2 of the 
CCL that was agreed upon by WA, BIS is updating and streamlining 
information security sections and policies within the EAR. Below is a 
summary of these updates.
    Revised ECCNs (4): 5E002 (Related Controls), 5A992, 5D992 and 
5E992.

Part 730--General Information

    Supplement No. 1 to part 730 is amended by removing the reference 
to 740.13(e) for paperwork collection 0694-137 ``License exemptions and 
exclusions.''

Part 734--Scope of the EAR

    The Note to Sec.  734.3(a)(4) is amended by removing the reference 
to Sec.  740.17(b)(4)(ii), which is deleted by this rule, and replacing 
the reference ``section 740.17(a)'' with the reference ``Sec.  
740.17(a)(4),'' which refers to foreign products developed with or 
incorporating U.S.-origin encryption source code components or 
toolkits.
    Section 734.3, the Note to paragraphs (b)(2) and (b)(3) is amended 
by revising the citation ``Sec.  740.13(e)'' to read ``Sec.  
742.15(b).'' This change is necessary because this rule moves the 
provision in Sec.  740.13(e) to Sec.  742.15(b) and then removes and 
reserves Sec.  740.13(e).
    Section 734.4 is amended by revising paragraph (b), which set forth 
special requirements for certain encryption items, to harmonize with 
other changes made to encryption items throughout this rule.
    Section 734.7, paragraph (b), is amended by revising the citation 
``Sec.  740.13(e)'' to ``Sec.  742.15(b).'' This change is necessary 
because this rule moves the provision in Sec.  740.13(e) to Sec.  
742.15(b) and removes and reserves Sec.  740.13(e).
    Section 734.17, paragraph (b)(2) is amended by revising the last 
two sentences. This change is necessary because this rule moves the 
provision in Sec.  740.13(e) to Sec.  742.15(b) and removes and 
reserves Sec.  740.13(e). In addition, encryption object code 
``software'' that corresponds to encryption source code ``software'' 
meeting the notification requirement of Sec.  742.15(b) is now publicly 
available, whereas before this rule it was eligible for License 
Exception TSU.

Part 740--License Exceptions

    Section 740.13(e) is deleted because this notification requirement 
is moved to newly revised Sec.  742.15(b).
    The introductory paragraph of Sec.  740.17 is amended to update the 
ECCNs that are eligible for License Exception ENC consistent with the 
implementation of the WA agreement to restructure Category 5--Part 2. 
There is no substantive change to eligible items.
    The introductory paragraphs of both Sec. Sec.  742.15(a)(1) and 
740.17 are revised to state that certain items classified in Category 
5--Part 2 of the Commerce Control List and described in License 
Exception ENC that meet the criteria of

[[Page 64664]]

Note 3 to Category 5--Part 2--i.e., are mass market encryption items--
are classified under ECCNs 5A992.c and 5D992.c and are no longer 
subject to ``EI'' or ``NS'' controls. The mass market provisions were 
previously set forth in Sec.  742.15(b), but in this rule are 
consolidated into Sec.  740.17 to delete duplicative text. Country 
Group E:2 is added to the introductory paragraph in two places, as well 
as Sec.  740.17(b)(2)(iv)(B), to correct an oversight in not adding E:2 
when Cuba was added to Country Group E:2.
    New Sec.  740.17(a)(1)(ii) is added to authorize exports, 
reexports, and transfers (in-country) among related parties for 
internal use when the parent company is headquartered in a Supplement 
No. 3 to part 740 country (License Exception ENC Favorable Treatment 
Countries). No classification or reporting is required for such 
exports, reexports or transfers (in-country).
    New Sec.  740.17(a)(3) is added to authorize reexports of foreign-
made products developed with or incorporating U.S. encryption source 
code, components or toolkits without classification by or reporting to 
BIS provided that the U.S.-origin encryption items have previously been 
classified or reported and authorized by BIS and the cryptographic 
function has not changed. This provision is moved from Sec.  
740.17(b)(4)(ii) to place all authorizations under License Exception 
ENC that do not require classification or self-classification in one 
paragraph.
    Section 740.17(b) is amended to delete the requirement for an 
encryption registration. The encryption registration requirement, added 
to the Export Administration Regulations in 2010, is being deleted to 
create a more streamlined and efficient reporting processes. 
Accordingly, references to the encryption registration requirement are 
removed throughout the EAR (e.g., parts 738 and 748). Exporters who 
self-classify encryption products under Sec.  740.17(b)(1) will 
continue to be required to submit a self-classification report on an 
annual basis. The requirements for the self-classification report are 
moved to Sec.  740.17(e)(3) from Sec.  742.15(c). In addition, Sec.  
740.17(b) is amended to provide that if an exporter obtains a Commodity 
Classification request (CCATS) classification from BIS for a product 
that is eligible for self-classification, the product does not need to 
be included in the annual self-classification report. BIS will make 
CCATS for products described in Sec.  740.17(b)(1) available to the ENC 
Encryption Request Coordinator through the SNAP-R system.
    Section 740.17(b)(2) is amended to update the performance 
parameters of ``network infrastructure'' items. In paragraph 
(b)(2)(A)(1), the performance parameter for aggregate encrypted WAN, 
MAN, VPN, backhaul or long-haul throughput (including communications 
through wireless network elements such as gateways, mobile switches, 
and controllers) is updated from greater than 90 Mbps to equal to or 
greater than 250 Mbps. Paragraph (b)(2)(i)(A)(2), which set forth a 
performance parameter for wire (line), cable or fiber optic WAN, MAN or 
VPN single channel input data rate exceeding 154 Mbps is deleted, as 
this parameter is redundant in light of the aggregate encrypted 
throughput parameter in paragraph (b)(2)(A)(1). For media gateways and 
other unified communications (UC) infrastructure, including Voice-over-
Internet Protocol (VoIP) services, the media encryption encrypted 
signaling is raised from more than 1,000 to 2,500 endpoints in 
paragraph (b)(2)(i)(A)(4).
    Section 740.17(b)(2) is also amended to authorize exports, 
reexports, and transfers (in-country) of ``network infrastructure'' 
items to ``less sensitive government end users'' in all countries 
except Country Group E:1 and E:2 countries. A definition of ``less 
sensitive government end users'' is added to part 772. BIS has issued 
many so-called ``worldwide'' encryption licensing arrangements (ELAs) 
with this scope and a semi-annual reporting requirement. Because there 
is no country scope difference between the ELAs and the License 
Exception ENC authorization to non-``government end users,'' BIS is 
making such exports, reexports, and transfers (in-country) eligible for 
License Exception ENC.
    This rule also adds a Note to paragraph (b)(2)(i)(A) to add a carve 
out for certain types of satellite infrastructure and to define 
`network infrastructure.' The satellite carve out was necessary because 
paragraph (b)(2), which precludes mass market treatment, was catching 
these consumer goods. The definition for `network infrastructure' is 
needed to clarify the scope of the license exception.
    This rule adds new paragraph (b)(2)(i)(H) for items in 5A002.d or 
.e and equivalent or related software therefor classified under 5D002. 
Such commodities and software were eligible for (b)(1) and (b)(3), but 
are now moved to (b)(2) because BIS determined that they warrant a 
higher level of control. BIS does not anticipate an increase in license 
applications because historically BIS has not received license 
applications for such items.
    Section 740.17(b)(4) is deleted because it is no longer needed. 
Section 740.17(b)(4)(i) described products with short range wireless 
encryption functions, most of which have been decontrolled pursuant to 
the decontrol notes in ECCN 5A002 on the Commerce Control List or 
pursuant to Note 4 to Category 5--Part 2 of the Commerce Control List. 
Section 740.17(b)(4)(ii) is moved to Sec.  740.17(a)(4) (see 
explanation above for paragraph (a)(4)).
    Section 740.17(f), ``Grandfathering,'' is deleted as it is no 
longer necessary.
    Supplement No. 3 to Part 740 is amended to add Croatia because it 
is a member of the European Union. This revised list harmonizes with 
the European Union's list of countries that do not require a license 
for encryption items.

Part 742--CCL Based Controls

    The introductory paragraph of Sec.  742.15(a) is amended to update 
the ECCNs that are controlled for EI reasons consistent with the 
implementation of the WA agreement to restructure Category 5--Part 2. 
There is no substantive change to eligible items. Country Group E:2 is 
added to Sec.  742.15(a)(2) to correct an oversight in not adding it 
when Cuba was added to Country Group E:2. Section 742.15(a) is also 
amended to state that mass market encryption products are now released 
from Encryption Item (EI) and National Security (NS) controls pursuant 
to Sec.  740.17, not Sec.  742.15(b), and to clarify that encryption 
license arrangements are available for exports to all ``government end 
users'' in most countries, including military end users, now that there 
is a defined subset of government end users (i.e., less sensitive 
government end users). The mass market provisions are deleted in Sec.  
742.15(b) and added (moved) to Sec.  740.17(b) in order to consolidate 
these provisions in one place. In addition, the classification 
requirements for mass market encryption products are moved to Sec.  
740.17(b). New Sec.  742.15(b) sets forth the notification requirement 
when encryption source code is made publicly available. The 
notification requirement is the same as previously set forth in Sec.  
740.13(e).
    Sections 742.15(c) (Self-classification reporting) and 742.15(f) 
(Grandfathering) are deleted. The self-classification reporting 
provisions formerly in Sec.  742.15(c) have been moved to Sec.  
740.17(e)(3) in order to consolidate all the mass-market provisions 
into Sec.  740.17. The encryption registration requirement previously 
set forth in Sec. Sec.  740.17(b) and 742.15(b) is deleted.

[[Page 64665]]

The grandfathering provisions are no longer necessary.
    Supplement No. 5 to part 742 is deleted because the encryption 
registration requirement previously set forth in Sec. Sec.  740.17(b) 
and 742.15(b) is deleted.
    Supplement No. 6 to part 742 ``Technical Questionnaire . . .'' is 
amended by revising the title of the supplement to include ``other 
``information security'' items,'' as well as revising the titles to 
paragraphs (a) and (b). Most of the revisions to this supplement are to 
clarify the information that must be provided in a classification 
request for encryption or ``information security'' items. This rule 
removes reference to the encryption registration in paragraphs (a)(2) 
and (d)(1) because this rule removes the requirement for encryption 
registration. Paragraph (b)(3) is revised for clarity. Paragraph (b)(7) 
is the former (b)(10). Paragraphs (b)(2), (b)(3), and (b)(9) are 
revised to clarify the information request. Paragraph (b)(10) is now 
question (7) from the deleted Supplement No. 5 to part 742. Paragraph 
(b)(11) has been updated to correspond more closely with Sec.  
740.17(b)(2). Paragraph (b)(12) is redesignated as (b)(13) and a new 
paragraph (b)(12) is added, which addresses information related to 
Sec.  740.17(b)(3). This rule adds paragraph (b)(14) to address 
Internet Protocol Security (IPsec) capabilities in products.
    Supplement No. 8 to part 742 is amended by revising the 
introductory paragraph, introductory text to paragraph (a), and 
paragraphs (a)(6) and (c)(1) to remove references to the deleted 
encryption registration requirement and to harmonize citation 
references to track amendments in this rule. The list of products in 
paragraph (a)(6) is revised to more accurately describe the types of 
products being reported. Paragraphs (a)(7) through (12) are added to 
include fields that remain necessary now that Supplement No. 5 is 
deleted. Paragraph (b)(2) and (b)(3) are revised to add six additional 
fields to identify the company or person submitting the report, its 
address, email, point of contact, telephone number, non-U.S. components 
and non-U.S. manufacturing locations, and bringing the total number of 
fields to twelve. Paragraph (c)(4) is added to note that only products 
self-classified by the exporter should be reported.

Part 748--Application

    This rule removes reference to the encryption registration and 
procedures, and aligns citation and ECCN references with revisions in 
this rule in Sec.  748.1(a) and (d), Sec.  748.3 title, paragraph (a), 
paragraph (d) title and paragraph, Sec.  748.7(a) and (d), Sec.  748.8 
(r), Sec.  748.9(c)(1)(viii), Supplement No. 1 to part 748 Block 5 
paragraph, Supplement No. 2 paragraph (r), and Supplement No. 7 
``Validated End User'' list.
    Other changes to Part 748 that relate to the removal of the foreign 
national review submission are described further down in this 
Supplementary Information section. One change to Supp. No. 6 to part 
748 is described above in relation to a WA agreement.

Part 772--Terms and Definitions

    In addition to the revisions to Part 772 related to WA agreements, 
this rule amends Part 772 in light of information security updates and 
simplification. Part 772 is amended to add definitions of ``less 
sensitive government end users'' (as applied to encryption items) and 
``more sensitive government end users'' (as applied to encryption 
items). BIS had been using these lists of less and more sensitive 
government end users for purposes of post-shipment reporting and pre-
shipment notification requirements in encryption licensing arrangements 
(ELAs); however, they were not published in the EAR. These definitions 
will be used in Sec.  742.15(a)(2) license review policy for Encryption 
License Arrangements (ELAs) and in Sec.  740.17(b)(2)(i) for a specific 
License Exception ENC authorization.
    In Sec.  772.1 of the EAR, this rule revises the definition of 
``publicly available encryption software'' to provide the updated 
reference of Sec.  742.15(b) for notification requirements, instead of 
Sec.  740.13(e) of the EAR.

Category 5--Part 2

    The Nota Bene to Note 3 (Cryptography Note) is amended to remove 
the reference to the encryption registration requirement and to add 
reference to the self-classification report because the information 
that was previously needed for the encryption registration will be 
obtained from the self-classification report.

5D002 ``Information Security'' ``software''

    This rule makes editorial revisions to the license requirements for 
this ECCN.

5E002 ``Information Security'' ``technology''

    This rule makes editorial revisions to the license requirements for 
this ECCN. The last sentence of the Related Controls note is deleted. 
Technology related to equipment excluded from control under ECCN 5A002 
is not necessarily controlled under ECCN 5E992.

5A992 Equipment Not Controlled by 5A002

    Paragraphs 5A992.a and .b are deleted because information security, 
telecommunication, and information security equipment, whether or not 
containing encryption, and components therefor will now either be 
controlled in the higher level Category 5--Part 2 ECCNs or not at all 
(i.e., EAR99). The only items still described in ECCN 5A992 are mass 
market encryption items in paragraph 5A992.c.

5D992 ``Information security'' ``software'' Not Controlled by 5D002

    Paragraphs 5D992.a and .b are deleted. The only items still 
described in ECCN 5D992 are mass market encryption items in 5D992.c. 
See explanation for 5A992 above. Some items previously classified as 
5D992.a or .b may now be classified as 4D993. You may submit a 
classification request to BIS for a free official classification or 
self-classify as appropriate.

5E992 ``Information Security'' ``technology''

    ECCN 5E992 is amended by removing and reserving Items paragraph .a, 
which is a consequential change because of the removal of 5A992.a and 
.b and 5D992.a and .b.
    A separate companion rule also published today is revising the 
license requirements of twelve entities on the Entity List to ``all 
items subject to the EAR'' in order to narrow the license requirement 
differences between EAR99 and 5A992.a and .b.
    The entry for ``Shanghai Huahong Grace Semiconductor Manufacturing 
Corporation'' on the VEU list is amended by revising the eligible 
items, because some of the items from 5A002 are now in new ECCN 5A004. 
Therefore, ECCN 5A004 is added to the list of eligible items for this 
entry.

Part III--High Performance Computer Adjusted Peak Performance (APP) 
Related Changes

    In conjunction with the raising of APP numbers in Category 4 by WA 
agreements, BIS is updating License Exception APP.

Section 740.7 License Exception APP

    In addition to the revisions connected with the removal of the 
Foreign National Review procedures, License Exception APP is amended by 
replacing the list of twenty-two (22) countries in paragraph (c)(3)(i) 
that are eligible to receive technology and software for

[[Page 64666]]

computers of unlimited Adjusted Peak Performance (APP) under License 
Exception APP with the list of thirty-six (36) countries in Country 
Group A:5 in Supplement No. 1 to part 740 because these countries are 
considered most trusted allies with like-minded export controls. This 
adds 14 Computer Tier 1 countries (Argentina, Bulgaria, Croatia, Czech 
Republic, Estonia, Hungary, Iceland, S. Korea, Latvia, Lithuania, 
Poland, Romania, Slovakia and Slovenia) to the list of countries 
eligible to receive technology and software controlled by ECCNs 4D001 
and 4E001 specially designed or modified for the ``development,'' 
``production,'' or ``use'' of computers, including ``electronic 
assemblies'' and specially designed components therefor classified in 
ECCN 4A003 under license exception APP.
    For the rest of Computer Tier 1 countries the APP threshold for 
deemed exports of ``development'' and ``production'' computer 
technology and source code is raised from an APP of 25 to 40 Weighted 
TeraFLOPS (WT) in paragraph (c)(3)(ii) and the ``use'' technology and 
source code is raised from an APP of 120 to 200 WT in paragraph 
(c)(3)(iii).
    For Computer Tier 3 countries, the APP threshold for deemed exports 
of ``development'' and ``production'' technology and source code is 
raised from an APP of 12 to 16 WT in paragraph (d)(3)(i). The APP 
threshold for deemed exports of ``use'' technology and source code is 
raised from an APP of 25 to 32 WT in paragraph (d)(3)(ii).
    These APP threshold revisions are based on technological 
advancements in computer technology, as well as license data on the 
deemed export of computer technology.

Section 734.4 De minimis U.S. content.

    Section 734.4 is amended by revising paragraph (a)(1) ``items for 
which there is no de minimis level'' to link the first APP value to 
ECCN 4A003.b for Tier 3 countries and the second APP value to 4A994.b 
for Cuba, Iran, North Korea, Sudan, and Syria. In making this revision, 
BIS is directly linking these ineligibility provisions for computers 
with the control levels for computers for these countries.

Sec.  743.2 High performance computers: Post shipment verification 
reporting.

    Section 743.2 is amended by replacing the reference to the Adjusted 
Peak Performance of 8.0 with a reference to ECCN 4A003.b in the 
requirement for post shipment verification reporting for exports and 
reexports of high performance computers to Computer Tier 3 
destinations. By replacing the APP number with the reference to 
4A003.b, it will always be directly linked with the APP control 
parameter of ECCN 4A003.

Part IV--Removal of the Foreign National Review (FNR) Procedure

    The Foreign National Review (FNR) procedure was implemented in 
License Exceptions CIV and APP (then CTP) in 2004 as a less burdensome 
procedure for authorizing deemed exports that would otherwise require 
licenses. Since the procedure was implemented, according to licensing 
statistics, BIS has processed a total of approximately 410 
applications, of which 230 were approved, none were denied, and 180 
were returned without action due to ineligibility or because the FNR 
was not required for the deemed export at issue. These statistics 
indicate that the procedure is not used widely by industry, perhaps 
because it is not well understood. In addition, the fact that the 
review procedure has not resulted in any denials in over eight years 
indicates that government licensing resources should be redirected to 
other more sensitive licensing issues. Removing this requirement 
removes an unnecessary delay for foreign nationals to receive 
technology that is eligible for deemed exports under License Exceptions 
CIV and APP. Therefore, BIS is removing the FNR procedure from the EAR 
so that License Exception CIV and APP may be utilized for eligible 
deemed exports.

License Exception CIV--Sec.  740.5

    This rule removes paragraph (d) under Sec.  740.5, which is the 
requirement under License Exception CIV to submit an FNR request to BIS 
for deemed exports and reexports of 3E002 technology to foreign 
nationals. The removal of this paragraph conforms to the removal of the 
FNR procedure from the EAR. This change allows exporters to utilize 
License Exception CIV for deemed exports of eligible 3E002 technology 
to a foreign national having a home country included in EAR Country 
Group D:1 without having to submit a FNR request to BIS.

Part 748 Applications (Classification, Advisory, and License) and 
Documentation

    Section 748.7 ``Registering for electronic submission of license 
applications and related documents'' is amended by removing references 
to the FNR requirement for License Exceptions APP and CIV under 
paragraphs (a) and (d). The removal of these words conform this 
provision with the removal of the FNR procedure from the EAR.
    Section 748.8 ``Unique Application and Submission Requirements'' is 
amended by removing paragraphs (s) ``Foreign National Review Request'' 
and (t) ``Foreign National Support Statement for deemed exports.'' 
Corresponding paragraphs (s) and (t) are removed from Supplement No. 2 
to part 748 as well. The removal of these sections and paragraphs 
conforms with the removal of the FNR procedure from the EAR. Guidelines 
for foreign national license applications are found on the BIS Web site 
at http://www.bis.doc.gov/index.php/policy-guidance/deemed-exports.
    Other changes to Part 748 related to the removal of the encryption 
registration requirement and a WA agreement are described in two 
separate paragraphs in a previous section of this Supplementary 
Information section.

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., p. 783 (2002), as 
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March 
13, 2013), and as extended by the Notice of August 4, 2016, 81 FR 52587 
(August 8, 2016), has continued the EAR in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
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 as amended by Executive Order 13637.

Saving Clause

    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 September 20, 2016, 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 exports, reexports and transfers (in-country) before November 21, 
2016. Any such items not actually exported, reexported and transfered 
(in-country) before midnight, on November 21, 2016, require a license 
in accordance with this regulation.

[[Page 64667]]

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 a ``significant regulatory 
action,'' 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 collection 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. The collection under control number 0694-0137 ``License 
Exemptions and Exclusions'' is revised because the notification 
requirement for publicly available software is amended by this rule. 
The notification requirement for publicly available source code 
software is moved from License Exception TSU to Sec.  742.15(b) of the 
EAR. Therefore, the burden hours will be moved from one section to 
another within 0694-0137 as a consequence of this rule and citations 
and requirements will be updated within the supporting statement for 
this collection upon the next renewal 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 
Jasmeet_K._Seehra@omb.eop.gov or by fax to (202) 395-7285; and to the 
Office of Administration, Bureau of Industry and Security, Department 
of Commerce, 1401 Constitution Ave. 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 30-day 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 2015 plenary session of the WA. Because the United States is a 
significant exporter of the items covered by this rule, implementation 
of this rule 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 730

    Administrative practice and procedure, Advisory committees, 
Exports, Reporting and recordkeeping requirements, Strategic and 
critical materials

15 CFR Part 734

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

15 CFR Parts 738, 770 and 772

    Exports.

15 CFR Parts 740 and 748

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

15 CFR part 742

    Exports, Terrorism.

15 CFR part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, Parts 730, 734, 738, 740, 742, 748, 770, 772, and 774 
of the Export Administration Regulations (15 CFR parts 730-774) are 
amended as follows:

PART 730--[AMENDED]

0
1. The authority citation for Part 730 continues to read as follows:

    Authority:  50 U.S.C. 4601 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. 2151 note; 
22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 43 U.S.C. 
1354; 15 U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; 
E.O. 12002, 42 FR 35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 
FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 
1980 Comp., p. 256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 
608; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918, 
59 FR 28205, 3 CFR, 1994 Comp., p. 899; 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. 12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O.

[[Page 64668]]

13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; 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; E.O. 13338, 
69 FR 26751, 3 CFR, 2004 Comp., p 168; E.O. 13637, 78 FR 16129, 3 
CFR, 2014 Comp., p. 223; Notice of September 18, 2015, 80 FR 57281 
(September 22, 2015); Notice of November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016); Notice of May 3, 2016, 81 FR 27293 (May 5, 2016); Notice 
of August 4, 2016, 81 FR 52587 (August 8, 2016).

Supplement No. 1 to Part 730 [Amended]

0
2. Supplement No. 1 to part 730 is amended by removing the reference to 
``740.13(e)'' under the ``Reference in the EAR'' column for the 
collection number 0694-0137.

PART 734--[AMENDED]

0
3. The authority citation for Part 734 continues to read as follows:

    Authority:  50 U.S.C. 4601 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; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 223; Notice of 
November 12, 2015, 80 FR 70667 (November 13, 2015); Notice of August 
4, 2016, 81 FR 52587 (August 8, 2016).


0
4. Section 734.3 is amended by revising the Note to paragraph (a)(4) 
and in the Note to paragraphs (b)(2) and (b)(3) by removing the 
citation ``Sec.  740.13(e)'' and adding ``Sec.  742.15(b)'' in its 
place.
    The revision reads as follows:


Sec.  734.3  Items subject to the EAR.

* * * * *
    (a) * * *
    (4) * * *

    Note to paragraph (a)(4): Certain foreign-manufactured items 
developed or produced from U.S.-origin encryption items exported 
pursuant to License Exception ENC are subject to the EAR. See Sec.  
740.17(a) of the EAR.

* * * * *

0
5. Section 734.4 is amended by revising paragraphs (a)(1) and (b) to 
read as follows:


Sec.  734.4  De minimis U.S. content.

    (a) Items for which there is no de minimis level. (1) There is no 
de minimis level for the export from a foreign country of a foreign-
made computer with an Adjusted Peak Performance (APP) exceeding that 
listed in ECCN 4A003.b and containing U.S.-origin controlled 
semiconductors (other than memory circuits) classified under ECCN 3A001 
to Computer Tier 3 destinations; or exceeding an APP listed in ECCN 
4A994.b and containing U.S.-origin controlled semiconductors (other 
than memory circuits) classified under ECCN 3A001 or high speed 
interconnect devices (ECCN 4A994.j) to Cuba, Iran, North Korea, Sudan, 
and Syria.
* * * * *
    (b) Special requirements for certain encryption items. Non-U.S.-
made items that incorporate U.S.-origin items that are listed in this 
paragraph are subject to the EAR unless they meet the de minimis level 
and destination requirements of paragraph (c) or (d) of this section 
and the requirements of this paragraph.
    (1) The U.S.-origin commodities or software, if controlled under 
ECCN 5A002, ECCN 5B002, equivalent or related software therefor 
classified under ECCN 5D002, and ``cryptanalytic items'' classified 
under ECCN 5A004 or 5D002, must have been:
    (i) Publicly available encryption source code classified under ECCN 
5D002 that has met the notification requirement of Sec.  742.15(b), see 
Sec.  734.3(b)(3) of the EAR. Such source code does not have to be 
counted as controlled U.S.-origin content in a de minimis calculation;
    (ii) Authorized for License Exception ENC by BIS after 
classification pursuant to Sec.  740.17(b)(3) of the EAR;
    (iii) Authorized for License Exception ENC by BIS after 
classification pursuant to Sec.  740.17(b)(2) of the EAR, and the non-
U.S.-made product will not be sent to any destination in Country Groups 
E:1 and E:2 in Supplement No. 1 to part 740 of the EAR; or
    (iv) Authorized for License Exception ENC pursuant to Sec.  
740.17(b)(1) of the EAR.
    (2) U.S.-origin encryption items classified under ECCNs 5A992.c, 
5D992.c, or 5E992.b.

    Note to paragraph (b): See Supplement No. 2 to this part for de 
minimis calculation procedures and reporting requirements.

Sec.  734.7   [Amended]

0
6. In Sec.  734.7, paragraph (b) is amended by revising the citation 
``Sec.  740.13(e)'' to read ``Sec.  742.15(b).''
0
7. In Sec.  734.17, paragraph (b)(2) is amended by revising the last 
two sentences to read as follows:


Sec.  734.17  Export of encryption source code and object code 
software.

* * * * *
    (b) * * *
    (2) * * * See Sec.  742.15(b) of the EAR for notification 
requirements for export or reexports of encryption source code 
``software'' considered to be publicly available or published 
consistent with the provisions of Sec.  734.3(b)(3). Publicly available 
encryption source code ``software'' and corresponding object code are 
not subject to the EAR, when the encryption source code ``software'' 
meets the notification requirements in Sec.  742.15(b) of the EAR.
* * * * *

PART 738--[AMENDED]

0
8. The authority citation for part 738 continues to read as follows:

    Authority:  50 U.S.C. 4601 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; 42 U.S.C. 2139a; 43 U.S.C. 1354; 15 U.S.C. 
1824a; 50 U.S.C. 4305; 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 4, 2016, 81 FR 
52587 (August 8, 2016).


0
9. In Sec.  738.4, revise paragraph (a)(2)(ii)(B) to read as follows:


Sec.  738.4  Determining whether a license is required.

    (a) * * *
    (2) * * *
    (ii) * * *
    (B) If no, a license is not required based on the particular Reason 
for Control and destination. Provided that General Prohibitions Four 
through Ten do not apply to your proposed transaction and the License 
Requirement section does not refer you to any other part of the EAR to 
determine license requirements. For example, any applicable encryption 
classification requirements described in Sec.  740.17(b) of the EAR 
must be met for certain mass market encryption items to affect your 
shipment using the symbol ``NLR.'' Proceed to parts 758 and 762 of the 
EAR for information on export clearance procedures and recordkeeping 
requirements. Note that although you may stop after determining a 
license is required based on the first Reason for Control, it is best 
to work through each applicable Reason for Control. A full analysis of 
every possible licensing requirement based on each applicable Reason 
for Control is required to determine the most advantageous License 
Exception available for your particular transaction and, if a license 
is required, ascertain the scope of review conducted by BIS on your 
license application.
* * * * *

[[Page 64669]]

PART 740--[AMENDED]

0
10. The authority citation for part 740 continues to read as follows:

    Authority:  50 U.S.C. 4601 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 4, 2016, 81 FR 52587 (August 8, 2016).


Sec.  740.5   [Amended]

0
11. Section 740.5 is amended by removing paragraph (d).
0
12. Section 740.7 is amended by revising paragraphs (a), (c)(3), and 
(d)(3) and removing paragraph (d)(4).
    The revisions read as follows:


Sec.  740.7  Computers (APP).

    (a) Scope--(1) Commodities. License Exception APP authorizes 
exports, reexports and transfers (in-country) of computers, including 
``electronic assemblies'' and specially designed components therefor 
controlled by ECCN 4A003 exported or reexported separately or as part 
of a system for consumption in Computer Tier countries as provided by 
this section. When evaluating your computer to determine License 
Exception APP eligibility, use the APP parameter to the exclusion of 
other technical parameters in ECCN 4A003.
    (2) Technology and software. License Exception APP authorizes 
exports of technology and software controlled by ECCNs 4D001 and 4E001 
specially designed or modified for the ``development,'' ``production,'' 
or ``use'' of computers, including ``electronic assemblies'' and 
specially designed components therefor classified in ECCN 4A003 to 
Computer Tier countries as provided by this section.
* * * * *
    (c) * * *
    (3) Eligible technology and software. (i) Technology and software 
described in paragraph (a)(2) of this section for computers of 
unlimited APP are eligible for export, reexport, transfer (in-country) 
under License Exception APP to countries listed in Country Group A:5, 
see Supplement No. 1 to this part; and
    (ii) ``Development'' and ``production'' technology and source code 
described in paragraph (a)(2) of this section for computers with a APP 
less than or equal to 40 Weighted TeraFLOPS (WT) are eligible for 
deemed exports under License Exception APP to foreign nationals of Tier 
1 destinations, other than the destinations that are listed in 
paragraph (c)(3)(i) of this section, subject to the restrictions in 
paragraph (b) of this section.
    (iii) ``Use'' technology and source code described in paragraph 
(a)(2) of this section for computers with a APP less than or equal to 
200 WT are eligible for deemed exports under License Exception APP to 
foreign nationals of Tier 1 destinations, other than the destinations 
that are listed in paragraph (c)(3)(i) of this section, subject to the 
restrictions in paragraph (b) of this section.
    (d) * * *
    (3) Eligible technology and source code. (i) ``Development'' and 
``production'' technology and source code described in paragraph (a)(2) 
of this section for computers with an APP less than or equal to 16 
Weighted TeraFLOPs (WT) are eligible for deemed exports under License 
Exception APP to foreign nationals of Tier 3 destinations as described 
in paragraph (d)(1) of this section, subject to the restrictions in 
paragraph (b) of this section.
    (ii) ``Use'' technology and source code described in paragraph 
(a)(2) of this section for computers with an APP less than or equal to 
32 WT are eligible for deemed exports under License Exception APP to 
foreign nationals of Tier 3 destinations as described in paragraph 
(d)(1) of this section, subject to the restrictions in paragraph (b) of 
this section.
* * * * *

0
13. Section 740.11 is amended by revising paragraphs (a)(2)(iii) and 
(c)(3)(iii) to read as follows:


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

* * * * *
    (a) * * *
    (2) * * *
    (iii) Encryption items controlled for EI reasons under ECCNs 5A002, 
5A004, 5D002, or 5E002 may not be exported, reexported, or transferred 
(in-country) under this paragraph (a). See Sec.  740.17 of the EAR 
(License Exception ENC) for possible alternative license exception 
authorization.
* * * * *
    (c) * * *
    (3) * * *
    (iii) Encryption items controlled for EI reasons under ECCNs 5A002, 
5A004, 5D002, or 5E002 (see Sec.  740.17 of the EAR for License 
Exception ENC);
* * * * *


Sec.  740.13   [Amended]

0
14. Section 740.13 is amended by removing and reserving paragraph (e).
0
15. Section 740.17 is revised to read as follows:


Sec.  740.17  Encryption Commodities, Software, and Technology (ENC).

    License Exception ENC authorizes export, reexport, and transfer 
(in-country) of systems, equipment, commodities, and components 
therefor that are classified under ECCNs 5A002, 5B002, equivalent or 
related software and technology therefor classified under 5D002 or 
5E002, and ``cryptanalytic items'' classified under ECCNs 5A004, 5D002 
or 5E002. This License Exception ENC does not authorize export or 
reexport to, transfer (in-country) in, or provision of any service in 
any country listed in Country Groups E:1 or E:2 in Supplement No. 1 to 
part 740 of the EAR, or release of source code or technology to any 
national of a country listed in Country Groups E:1 or E:2. Reexports 
and transfers (in-country) under License Exception ENC are subject to 
the criteria set forth in paragraph (c) of this section. Paragraphs (b) 
and (d) of this section set forth information about classifications 
required by this section. Items described in paragraphs (b)(1) and 
(b)(3)(i), (ii), or (iv) of this section that meet the criteria set 
forth in Note 3 to Category 5--Part 2 of the Commerce Control List (the 
``mass market'' note) are classified under ECCN 5A992.c or 5D992.c 
following self-classification or classification by BIS and are no 
longer subject to ``EI'' and ``NS'' controls. Paragraph (e) sets forth 
reporting required by this section. For items exported under paragraphs 
(b)(1), (b)(3)(i), (ii), or (iv) of this section and therefore excluded 
from paragraph (e) reporting requirements, exporters are reminded of 
the recordkeeping requirements in part 762 of the EAR and that they may 
be required to make such records available upon request. All 
classification requests, and reports submitted to BIS pursuant to this 
section for encryption items will be reviewed by the ENC Encryption 
Request Coordinator, Ft. Meade, MD.
    (a) No classification request or reporting required. License 
Exception ENC authorizes the export, reexport, or transfer (in-country) 
to the end users and for the end uses set forth in paragraphs (a)(1) 
through (3) of this section, without submission of a classification 
request, self-classification report or sales report to BIS.
    (1) Certain exports, reexports, transfers (in-country) to `private 
sector end users'--(i) Internal ``development'' or ``production'' of 
new products. License Exception ENC authorizes certain exports, 
reexports, and transfers (in-country) of items described in paragraph 
(a) of this section for the internal ``development'' or

[[Page 64670]]

``production'' of new products by `private sector end users,' wherever 
located, that are headquartered in a country listed in Supplement No. 3 
of this part.
    (ii) Certain exports, reexports, transfers (in-country) to related 
parties, not involving ``development'' or ``production'' of new 
products. For internal end uses among `private sector end users' other 
than the ``development'' or ``production'' of new products, License 
Exception ENC authorizes exports, reexports, and transfers (in-country) 
of non-U.S.-origin items, described in paragraph (a) of this section, 
to `private sector end users' wherever located provided that:
    (A) That item became subject to the EAR after it was produced;
    (B) All parties to the transaction are subsidiaries of the same 
parent company headquartered in a country listed in Supplement No. 3 of 
this part; and
    (C) The characteristics or capabilities of the existing item are 
not enhanced, unless otherwise authorized by license or license 
exception.

    Note to paragraph (a)(1): A `private sector end user' is either: 
An individual who is not acting on behalf of any foreign government; 
or a commercial firm (including its subsidiary and parent firms, and 
other subsidiaries of the same parent) that is not wholly owned by, 
otherwise controlled by or acting on behalf of, any foreign 
government.

    (2) Exports, reexports, transfers (in-country) to ``U.S. 
Subsidiaries.'' License Exception ENC authorizes export, reexport, and 
transfer (in-country) of items described in paragraph (a) of this 
section to any ``U.S. subsidiary,'' wherever located. License Exception 
ENC also authorizes export, reexport, transfer (in-country) of such 
items by a U.S. company and its subsidiaries to foreign nationals who 
are employees, individual contractors or interns of a U.S. company or 
its subsidiaries if the items are for internal company use, including 
the ``development'' or ``production'' of new products, without prior 
review by the U.S. Government.

    Note to paragraphs (a)(1) and (2): All items produced or 
developed with items exported, reexported, or transferred (in-
country) under paragraphs (a)(1) or (2) of this section are subject 
to the EAR. These items may require the submission of a 
classification request before sale, reexport or transfer to non-
``U.S. subsidiaries,'' unless otherwise authorized by license or 
license exception.

    (3) Reexports and transfers (in-country) of non-U.S. products 
developed with or incorporating U.S.-origin encryption source code, 
components, or toolkits. License Exception ENC authorizes the reexport 
and transfer (in-country) of non-U.S. products developed with or 
incorporating U.S.-origin encryption source code, components or 
toolkits that are subject to the EAR, provided that the U.S.-origin 
encryption items have previously been classified or reported and 
authorized by BIS and the cryptographic functionality has not been 
changed. Such products include non-U.S. developed products that are 
designed to operate with U.S. products through a cryptographic 
interface.

    Note to paragraph (a)(3): This exception from classification and 
reporting requirements does not apply to non-U.S.-origin products 
exported from the United States.

    (b) Classification request or self-classification report. For 
products described in paragraph (b)(1) of this section that are self-
classified by the exporter, a self-classification report in accordance 
with paragraph (e)(3) of this section is required from specified 
exporters, reexporters and transferors; for products described in 
paragraph (b)(1) of this section that are classified by BIS via a 
CCATS, a self-classification report is not required. For products 
described in paragraphs (b)(2) and (3) of this section, a thirty-day 
(30-day) classification request is required in accordance with 
paragraph (d) of this section. An exporter, reexporter, or transferor 
may rely on the producer's self-classification (for products described 
in (b)(1), only) or CCATS for an encryption item eligible for export or 
reexport under License Exception ENC under paragraph (b)(1), (2), or 
(3) of this section. Exporters are still required to comply with semi-
annual sales reporting requirements under paragraph (e)(1) or (2) of 
this section, even if relying on a CCATS issued to a producer for 
specified encryption items described in paragraphs (b)(2) and 
(b)(3)(iii) of this section.
    (1) Immediate authorization. This paragraph (b)(1) authorizes the 
exports, reexports, and transfers (in-country) of the associated 
commodities self-classified under ECCNs 5A002.a or 5B002, and 
equivalent or related software therefor classified under 5D002, except 
any such commodities, software, or components described in (b)(2) or 
(3) of this section, subject to submission of a self-classification 
report in accordance with Sec.  740.17(e)(3) of the EAR. Items 
described in this paragraph (b)(1) that meet the criteria set forth in 
Note 3 to Category 5--Part 2 of the Commerce Control List (the ``mass 
market'' note) are classified as ECCN 5A992.c or 5D992.c following 
self-classification or classification by BIS and are removed from 
``EI'' and ``NS'' controls.
    (2) Classification request required. Thirty (30) days after the 
submission of a classification request with BIS in accordance with 
paragraph (d) of this section and subject to the reporting requirements 
in paragraph (e) of this section, this paragraph under License 
Exception ENC authorizes certain exports, reexports, and transfers (in-
country) of the items specified in paragraph (b)(2) and submitted for 
classification.

    Note to paragraph (b)(2 introductory text): Immediately after 
the classification request is submitted to BIS in accordance with 
paragraph (d) of this section and subject to the reporting 
requirements in paragraph (e) of this section, this paragraph also 
authorizes exports, reexports, and transfers (in-country) of:
    1. All submitted encryption items described in this paragraph 
(b)(2), except ``cryptanalytic items,'' to any end user located or 
headquartered in a country listed in Supplement No. 3 to this part;
    2. Encryption source code as described in paragraph (b)(2)(i)(B) 
to non-``government end users'' in any country;
    3. ``Cryptanalytic items'' to non-``government end users,'' 
only, located or headquartered in a country listed in Supplement No. 
3 to this part; and
    4. Items described in paragraphs (b)(2)(iii) and (b)(2)(iv)(A) 
of this section, to specified destinations and end users.

    (i) Cryptographic commodities, software, and components. License 
Exception ENC authorizes exports, reexports, and transfers (in-country) 
of the items in paragraph (a)(i)(A) of this section to ``less sensitive 
government end users'' and non- ``government end users'' located or 
headquartered in a country not listed in Supplement No. 3 to this part, 
and the items in paragraphs (b)(2)(i)(B) through (H) to non 
``government end users'' located or headquartered in a country not 
listed in Supplement No. 3.
    (A) `Network Infrastructure.' `Network infrastructure' commodities 
and software, and components therefor, meeting any of the following 
with key lengths exceeding 80-bits for symmetric algorithms:
    (1) WAN, MAN, VPN, backhaul and long-haul. Aggregate encrypted WAN, 
MAN, VPN, backhaul or long-haul throughput (including communications 
through wireless network elements such as gateways, mobile switches, 
and controllers) equal to or greater than 250 Mbps;
    (2) [Reserved]
    (3) Satellite infrastructure. Transmission over satellite at data 
rates exceeding 10 Mbps;
    (4) Media gateways and other unified communications (UC) 
infrastructure,

[[Page 64671]]

including Voice-over-Internet Protocol (VoIP) services. Media (voice/
video/data) encryption or encrypted signaling to more than 2,500 
endpoints, including centralized key management therefor; or
    (5) Terrestrial wireless infrastructure. Air interface coverage 
(e.g., through base stations, access points to mesh networks, and 
bridges) exceeding 1,000 meters, where any of the following applies:
    (i) Maximum transmission data rates exceeding 10 Mbps (at operating 
ranges beyond 1,000 meters); or
    (ii) Maximum number of concurrent full-duplex voice channels 
exceeding 30;

    Notes to paragraph (b)(2)(i)(A): 
    1. The License Exception ENC eligibility restrictions of 
paragraphs (b)(2)(i)(A)(3) (satellite infrastructure) and 
(b)(2)(i)(A)(5) (terrestrial wireless infrastructure) do not apply 
to satellite terminals or modems meeting all of the following:
    a. The encryption of data over satellite is exclusively from the 
user terminal to the gateway earth station, and limited to the air 
interface; and
    b. The items meet the requirements of the Cryptography Note 
(Note 3) in Category 5--Part 2 of the Commerce Control List.
    2. `Network infrastructure' (as applied to encryption items). A 
`network infrastructure' commodity or software is any ``end item,'' 
commodity or ``software'' for providing one or more of the following 
types of communications:''
    (a) Wide Area Network (WAN);
    (b) Metropolitan Area Network (MAN);
    (c) Virtual Private Network (VPN);
    (d) Satellite;
    (e) Digital packet telephony/media (voice, video, data) over 
Internet protocol;
    (f) Cellular; or
    (g) Trunked.


    Note 1 to paragraph 2: `Network infrastructure' end items are 
typically operated by, or for, one or more of the following types of 
end users:
    (1) Medium- or large- sized businesses or enterprises;
    (2) Governments;
    (3) Telecommunications service providers; or
    (4) Internet service providers.


    Note 2 to paragraph 2: Commodities, software, and components for 
the ``cryptographic activation'' of a `network infrastructure' item 
are also considered `network infrastructure' items.

    (B) Certain ``encryption source code.'' ``Encryption source code'' 
that is not publicly available as that term is used in Sec.  742.15(b) 
of the EAR;
    (C) Customized items. Encryption software, commodities and 
components therefor, where any of the following applies:
    (1) Customized for government end users or end uses. The item has 
been designed, modified, adapted, or customized for ``government end 
user(s);'' or
    (2) Custom or changeable cryptography. The cryptographic 
functionality of the item has been designed or modified to customer 
specification or can be easily changed by the user;
    (D) Quantum cryptography. ECCN 5A002.c or 5D002 ``quantum 
cryptography'' commodities or software;
    (E) [Reserved]
    (F) Network penetration tools. Encryption commodities and software 
that provide penetration capabilities that are capable of attacking, 
denying, disrupting or otherwise impairing the use of cyber 
infrastructure or networks;
    (G) Public safety/first responder radio (private mobile radio 
(PMR)). Public safety/first responder radio (e.g., implementing 
Terrestrial Trunked Radio (TETRA) and/or Association of Public-Safety 
Communications Officials International (APCO) Project 25 (P25) 
standards);
    (H) Specified cryptographic ultra-wideband and ``spread spectrum'' 
items. Encryption commodities and components therefor, classified under 
ECCNs 5A002.d or .e, and equivalent or related software therefor 
classified under ECCN 5D002.
    (ii) Cryptanalytic commodities and software. ``Cryptanalytic 
items'' classified in ECCN 5A004 or 5D002 to non- ``government end 
users'' located or headquartered in countries not listed in Supplement 
No. 3 to this part.
    (iii) ``Open cryptographic interface'' items. Items that provide an 
``open cryptographic interface,'' to any end user located or 
headquartered in a country listed in Supplement No. 3 to this part.
    (iv) Specific encryption technology. Specific encryption technology 
as follows:
    (A) Technology for ``non-standard cryptography.'' Encryption 
technology classified under ECCN 5E002 for ``non-standard 
cryptography,'' to any end user located or headquartered in a country 
listed in Supplement No. 3 to this part;
    (B) Other technology. Encryption technology classified under ECCN 
5E002 except technology for ``cryptanalytic items,'' ``non-standard 
cryptography'' or any ``open cryptographic interface,'' to any non-
``government end user'' located in a country not listed in Country 
Group D:1, E:1, or E:2 of Supplement No. 1 to part 740 of the EAR.

    Note to paragraph (b)(2): Commodities, components, and software 
classified under ECCNs 5A002.b or 5D002.d, for the ``cryptographic 
activation'' of commodities or software specified by this paragraph 
(b)(2) are also controlled under this paragraph (b)(2).

    (3) Classification request required for specified commodities, 
software, and components. Thirty (30) days after a classification 
request is submitted to BIS in accordance with paragraph (d) of this 
section and subject to the reporting requirements in paragraph (e) of 
this section, this paragraph authorizes exports, reexports, and 
transfers (in-country) of the items submitted for classification, as 
further described in this paragraph (b)(3), to any end user, provided 
the item does not perform the functions, or otherwise meet the 
specifications, of any item described in paragraph (b)(2) of this 
section. Items described in paragraphs (b)(3)(i), (ii), or (iv) of this 
section that meet the criteria set forth in Note 3 to Category 5--Part 
2 of the Commerce Control List (the ``mass market'' note) are 
classified under ECCN 5A992.c or 5D992.c following classification by 
BIS.

    Note to introductory text of paragraph (b)(3): Immediately after 
the classification request is submitted to BIS in accordance with 
paragraph (d) of this section and subject to the reporting 
requirements in paragraph (e) of this section, this paragraph also 
authorizes exports, reexports, transfers (in-country) of the items 
described in this paragraph (b)(3) to any end user located or 
headquartered in a country listed in Supplement No. 3 to this part.

    (i) ``Components,'' toolsets, and toolkits. Specified components 
classified under ECCN 5A002.a and equivalent or related software 
classified under ECCN 5D002 not described by paragraph (b)(2) of this 
section, as follows:
    (A) Chips, chipsets, electronic assemblies and field programmable 
logic devices;
    (B) Cryptographic libraries, modules, development kits and 
toolkits, including for operating systems and cryptographic service 
providers (CSPs).
    (ii) ``Non-standard cryptography'' (by items not otherwise 
described in paragraph (b)(2) of this section.) Encryption commodities, 
software and components not described by paragraph (b)(2) of this 
section, that provide or perform ``non-standard cryptography'' as 
defined in part 772 of the EAR.
    (iii) Advanced network vulnerability analysis and digital 
forensics. Encryption commodities and software not described by 
paragraph (b)(2) of this section, that provide or perform vulnerability 
analysis, network forensics, or computer forensics functions 
characterized by any of the following:
    (A) Automated network vulnerability analysis and response. 
Automated

[[Page 64672]]

network analysis, visualization, or packet inspection for profiling 
network flow, network user or client behavior, or network structure/
topology and adapting in real-time to the operating environment; or
    (B) Digital forensics, including network or computer forensics. 
Investigation of data leakage, network breaches, and other malicious 
intrusion activities through triage of captured digital forensic data 
for law enforcement purposes or in a similarly rigorous evidentiary 
manner.
    (iv) ``Cryptographic activation'' commodities, components, and 
software. Commodities, components, and software classified under ECCNs 
5A002.b or 5D002.d where the product or cryptographic functionality is 
not otherwise described in paragraphs (b)(2) or (b)(3)(i) of this 
section.
    (c) Reexport and transfer (in-country). Distributors, resellers or 
other entities who are not original manufacturers of encryption 
commodities and software are permitted to use License Exception ENC 
only in instances where the reexport or transfer (in-country) meets the 
applicable terms and conditions of this section. Transfers of 
encryption items listed in paragraph (b)(2) of this section to 
``government end users,'' or for government end uses, within the same 
country are prohibited, unless otherwise authorized by license or 
license exception.
    (d) Classification request procedures--(1) Submission requirements 
and instructions. To submit a classification request to BIS, you must 
submit an application to BIS in accordance with the procedures 
described in Sec. Sec.  748.1 and 748.3 of the EAR and the instructions 
in paragraph (r) of Supplement No. 2 to part 748 ``Unique Application 
and Submission Requirements,'' along with other required information as 
follows:
    (ii) Technical information submission requirements. For all 
submissions of encryption classification requests for items described 
under paragraph (b)(2) or (b)(3) of this section, you must submit the 
applicable information described in paragraphs (a) through (d) of 
Supplement No. 6 to part 742 of the EAR (Technical Questionnaire for 
Encryption Items). For items eligible for self-classification that are 
submitted to BIS for classification you may be required to provide BIS 
this Supplement No. 6 to part 742 information on an as-needed basis, 
upon request by BIS.
    (iii) Changes in encryption functionality following a previous 
classification. A new product encryption classification request (under 
paragraphs (b)(2) or (b)(3) of this section) is required if a change is 
made to the cryptographic functionality (e.g., algorithms) or other 
technical characteristics affecting License Exception ENC eligibility 
(e.g., encrypted throughput) of the originally classified product. 
However, a new product classification request is not required when a 
change involves: the subsequent bundling, patches, upgrades or releases 
of a product; name changes; or changes to a previously reviewed 
encryption product where the change is limited to updates of encryption 
software components where the product is otherwise unchanged.
    (2) Action by BIS.
    (i) [Reserved]
    (ii) For items requiring classification by BIS under paragraphs 
(b)(2) and (3) of this section. (A) For classifications that require a 
thirty (30-day) waiting period, if BIS has not, within thirty days (30 
days) from registration in SNAP-R of your complete classification 
request, informed you that your item is not authorized for License 
Exception ENC, you may export, reexport, or transfer (in-country) under 
the applicable provisions of License Exception ENC.
    (B) Upon completion of its classification, BIS will issue a 
Commodity Classification Automated Tracking System (CCATS) to you.
    (C) Hold Without Action (HWA) for classification requests. BIS may 
hold your classification request without action if necessary to obtain 
additional information or for any other reason necessary to ensure an 
accurate classification. Time on such ``hold without action'' status 
shall not be counted towards fulfilling the thirty-day (30-day) 
processing period specified in this paragraph.
    (iii) BIS may require you to supply additional relevant technical 
information about your encryption item(s) or information that pertains 
to their eligibility for License Exception ENC at any time, before or 
after the expiration of the thirty-day (30-day) processing period 
specified in this paragraph and in paragraphs (b)(2) and (3) of this 
section. If you do not supply such information within 14 days after 
receiving a request for it from BIS, BIS may return your classification 
request(s) without action or otherwise suspend or revoke your 
eligibility to use License Exception ENC for that item(s). At your 
request, BIS may grant you up to an additional 14 days to provide the 
requested information. Any request for such an additional number of 
days must be made prior to the date by which the information was 
otherwise due to be provided to BIS, and may be approved if BIS 
concludes that additional time is necessary.
    (e) Reporting requirements--(1) Semiannual reporting requirement. 
Semiannual reporting is required for exports to all destinations other 
than Canada, and for reexports from Canada for items described under 
paragraphs (b)(2) and (b)(3)(iii) of this section. Certain encryption 
items and transactions are excluded from this reporting requirement, 
see paragraph (e)(1)(iii) of this section. For information about what 
must be included in the report and submission requirements, see 
paragraphs (e)(1)(i) and (ii) of this section respectively.
    (i) Information required. Exporters must include for each item, the 
Commodity Classification Automated Tracking System (CCATS) number and 
the name of the item(s) exported (or reexported from Canada), and the 
following information in their reports:
    (A) Distributors or resellers. For items exported (or reexported 
from Canada) to a distributor or other reseller, including subsidiaries 
of U.S. firms, the name and address of the distributor or reseller, the 
item and the quantity exported or reexported and, if collected by the 
exporter as part of the distribution process, the end user's name and 
address;
    (B) Direct sales. For items exported (or reexported from Canada) 
through direct sale, the name and address of the recipient, the item, 
and the quantity exported; or
    (C) Foreign manufacturers and products that use encryption items. 
For exports (i.e., from the United States) or direct transfers (e.g., 
by a ``U.S. subsidiary'' located outside the United States) of 
encryption components, source code, general purpose toolkits, equipment 
controlled under ECCN 5B002, technology, or items that provide an 
``open cryptographic interface,'' to a foreign developer or 
manufacturer headquartered in a country not listed in Supplement No. 3 
to this part when intended for use in foreign products developed for 
commercial sale, the names and addresses of the manufacturers using 
these encryption items and, if known, when the product is made 
available for commercial sale, a non-proprietary technical description 
of the foreign products for which these encryption items are being used 
(e.g., brochures, other documentation, descriptions or other 
identifiers of the final foreign product; the algorithm and key lengths 
used; general programming interfaces to the product, if known; any 
standards or protocols that the foreign product adheres to; and source 
code, if available).

[[Page 64673]]

    (ii) Submission requirements. For exports occurring between January 
1 and June 30, a report is due no later than August 1 of that year. For 
exports occurring between July 1 and December 31, a report is due no 
later than February 1 the following year. These reports must be 
provided in electronic form. Recommended file formats for electronic 
submission include spreadsheets, tabular text or structured text. 
Exporters may request other reporting arrangements with BIS to better 
reflect their business models. Reports may be sent electronically to 
BIS at crypt@bis.doc.gov and to the ENC Encryption Request Coordinator 
at enc@nsa.gov, or disks and CDs containing the reports may be sent to 
the following addresses:
    (A) Department of Commerce, Bureau of Industry and Security, Office 
of National Security and Technology Transfer Controls, 14th Street and 
Pennsylvania Ave. NW., Room 2705, Washington, DC 20230, Attn: 
Encryption Reports, and
    (B) Attn: ENC Encryption Request Coordinator, 9800 Savage Road, 
Suite 6940, Ft. Meade, MD 20755-6000.
    (iii) Exclusions from reporting requirement. Reporting is not 
required for the following items and transactions:
    (A) [Reserved]
    (B) Encryption commodities or software with a symmetric key length 
not exceeding 64 bits;
    (C) Encryption items exported (or reexported from Canada) via free 
and anonymous download;
    (D) Encryption items from or to a U.S. bank, financial institution 
or its subsidiaries, affiliates, customers or contractors for banking 
or financial operations;
    (E) [Reserved]
    (F) Foreign products developed by bundling or compiling of source 
code.
    (2) Key length increases. Reporting is required for commodities and 
software that, after having been classified and authorized for License 
Exception ENC in accordance with paragraphs (b)(2) or (3) of this 
section, are modified only to upgrade the key length used for 
confidentiality or key exchange algorithms. Such items may be exported, 
reexported or transferred (in-country) under the previously authorized 
provision of License Exception ENC without a classification 
resubmission.
    (i) Information required. (A) A certification that no change to the 
encryption functionality has been made other than to upgrade the key 
length for confidentiality or key exchange algorithms.
    (B) The original Commodity Classification Automated Tracking System 
(CCATS) authorization number issued by BIS and the date of issuance.
    (C) The new key length.
    (ii) Submission requirements. (A) The report must be received by 
BIS and the ENC Encryption Request Coordinator before the export, 
reexport or transfer (in-country) of the upgraded product; and
    (B) The report must be emailed to crypt@bis.doc.gov and 
enc@nsa.gov.
    (3) Self-classification reporting for certain encryption 
commodities, software and components. This paragraph (e)(3) sets forth 
requirements for self-classification reporting to BIS and the ENC 
Encryption Request Coordinator (Ft. Meade, MD) of encryption 
commodities, software and components exported or reexported. This 
reporting requirement applies to commodities and software that meet the 
criteria of Note 3 to Category 5--Part 2 of the Commerce Control List 
(``mass market'' note) and are classified under ECCN 5A992.c or 5D992.c 
following self-classification, as well as to commodities and software 
that remain classified in ECCNs 5A002, 5B002 or 5D002 following self-
classification.
    (i) When to report. Your self-classification report for applicable 
encryption commodities, software and components exported or reexported 
during a calendar year (January 1 through December 31) must be received 
by BIS and the ENC Encryption Request Coordinator no later than 
February 1 the following year.
    (ii) How to report. Encryption self-classification reports must be 
sent to BIS and the ENC Encryption Request Coordinator via email or 
regular mail. In your submission, specify the timeframe that your 
report spans and identify points of contact to whom questions or other 
inquiries pertaining to the report should be directed. Follow these 
instructions for your submissions:
    (A) Submissions via email. Submit your encryption self-
classification report electronically to BIS at crypt-supp8@bis.doc.gov 
and to the ENC Encryption Request Coordinator at enc@nsa.gov, as an 
attachment to an email. Identify your email with subject ``self-
classification report.''
    (B) Submissions on disks and CDs. The self-classification report 
may be sent to the following addresses, in lieu of email:
    (1) Department of Commerce, Bureau of Industry and Security, Office 
of National Security and Technology Transfer Controls, 14th Street and 
Pennsylvania Ave. NW., Room 2099B, Washington, DC 20230, Attn: 
Encryption Reports, and
    (2) Attn: ENC Encryption Request Coordinator, 9800 Savage Road, 
Suite 6940, Ft. Meade, MD 20755-6000.
    (iii) Information to report. Your encryption self-classification 
report must include the information described in paragraph (a) of 
Supplement No. 8 to part 742 for each applicable encryption commodity, 
software and component made eligible for export or reexport under Sec.  
740.17(b)(1) of the EAR. Each product must be included in a report only 
one time. However, if no new products are made eligible for export or 
reexport during a calendar year, you must send an email to the 
addresses listed in paragraph (e)(3)(ii)(A) of this section stating 
that nothing has changed since the previous report.
    (iv) File format requirements. The information described in 
paragraph (a) of Supplement No. 8 to part 742 must be provided to BIS 
and the ENC Encryption Request Coordinator in tabular or spreadsheet 
form, as an electronic file in comma separated values format (.csv) 
adhering to the specifications set forth in paragraph (b) of Supplement 
No. 8 to part 742.

Supplement No. 3 to Part 740 [Amended]

0
16. Supplement No. 3 to part 740 is amended by adding ``Croatia'' in 
alphabetical order.

PART 742--[AMENDED]

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

    Authority:  50 U.S.C. 4601 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, Public Law 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, 68 FR 26459, 3 CFR, 2004 Comp., 
p. 320; Notice of November 12, 2015, 80 FR 70667 (November 13, 
2015); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016).


Sec.  742.10   [Amended]

0
18. Section 742.10 is amended in paragraph (a)(2) by removing the 
phrase ``.5A992, 5D992.b and .c'' and adding in its place ``5A992.c, 
5D992.c''.
0
19. Section 742.15 is amended by revising paragraphs (a) and (b) and 
removing paragraphs (c) and (d).
    The revisions read as follows:


Sec.  742.15  Encryption Items.

* * * * *

[[Page 64674]]

    (a) Licensing requirements and policy--(1) Licensing requirements. 
A license is required to export or reexport encryption items (``EI'') 
classified under ECCN 5A002, 5A004, 5D002.a, .c.1 or .d (for equipment 
and ``software'' in ECCNs 5A002 or 5A004, 5D002.c.1); or 5E002 for 
``technology'' for the ``development,'' ``production,'' or ``use'' of 
commodities or ``software'' controlled for EI reasons in ECCNs 5A002, 
5A004 or 5D002, and ``technology'' classified under 5E002.b to all 
destinations, except Canada. Refer to part 740 of the EAR, for license 
exceptions that apply to certain encryption items, and to Sec.  772.1 
of the EAR for definitions of encryption items and terms. Most 
encryption items may be exported under the provisions of License 
Exception ENC set forth in Sec.  740.17 of the EAR. Following 
classification or self-classification, items that meet the criteria of 
Note 3 to Category 5--Part 2 of the Commerce Control List (the ``mass 
market'' note), are classified ECCN 5A992.c or 5D992.c and are no 
longer subject to this Section (see Sec.  740.17 of the EAR). Before 
submitting a license application, please review License Exception ENC 
to determine whether this license exception is available for your item 
or transaction. For exports, reexports, or transfers (in-country) of 
encryption items that are not eligible for a license exception, you 
must submit an application to obtain authorization under a license or 
an Encryption Licensing Arrangement.
    (2) Licensing policy. Applications will be reviewed on a case-by-
case basis by BIS, in conjunction with other agencies, to determine 
whether the export, reexport, or transfer (in-country) is consistent 
with U.S. national security and foreign policy interests. Encryption 
Licensing Arrangements (ELAs) may be authorized for exports, reexports, 
or transfers (in-country) of unlimited quantities of encryption 
commodities and software described in Sec.  740.17 (b)(2)(i)(A) that 
have been classified by BIS to ``more sensitive government end users,'' 
in all destinations, except countries listed in Country Groups E:1 or 
E:2 of Supplement No. 1 to part 740. ELAs for ``more sensitive 
government end users'' may be authorized for encryption commodities and 
software described in Sec.  740.17(b)(2)(ii) through (iv) under certain 
circumstances. ELAs are valid for four years and may require pre-
shipment notification. Applicants seeking authorization for Encryption 
Licensing Arrangements must specify the sales territory on their 
license applications.
    (b) Publicly available encryption source code--(1) Scope and 
eligibility. Subject to the notification requirements of paragraph 
(b)(2) of this section, publicly available (see Sec.  734.3(b)(3) of 
the EAR) encryption source code classified under ECCN 5D002 is not 
subject to the EAR. Such source code is publicly available even if it 
is subject to an express agreement for the payment of a licensing fee 
or royalty for commercial production or sale of any product developed 
using the source code.
    (2) Notification requirement. You must notify BIS and the ENC 
Encryption Request Coordinator via email of the Internet location 
(e.g., URL or Internet address) of the publicly available encryption 
source code classified under ECCN 5D002 or provide each of them a copy 
of the publicly available encryption source code. If you update or 
modify the source code, you must also provide additional copies to each 
of them each time the cryptographic functionality of the source code is 
updated or modified. In addition, if you posted the source code on the 
Internet, you must notify BIS and the ENC Encryption Request 
Coordinator each time the Internet location is changed, but you are not 
required to notify them of updates or modifications made to the 
encryption source code at the previously notified location. In all 
instances, submit the notification or copy to crypt@bis.doc.gov and to 
enc@nsa.gov.

Supplement No. 5 to Part 742 [Removed and Reserved]

0
20. Part 742 is amended by removing and reserving Supplement No. 5.
0
21. Supplement No. 6 is amended by:
0
a. Revising the heading of the Supplement;
0
b. Revising paragraphs (a) introductory text, (a)(2), (b) introductory 
text, (b)(2) and (3), (b)(6) and (7), and (b)(9) through (12);
0
c. Adding paragraph (b)(13) and (14); and
0
d. Revising paragraph (d)(1).
    The revisions and additions read as follows:

Supplement No. 6 to Part 742--Technical Questionnaire for Encryption 
and Other ``Information Security'' Items

    (a) For all items:
* * * * *
    (2) Indicate whether there have been any prior classifications 
of the product(s), if they are applicable to the current submission. 
For products with minor changes in encryption functionality, you 
must include a cover sheet with complete reference to the previous 
review (Commodity Classification Automated Tracking System (CCATS) 
number, Export Control Classification Number (ECCN), authorization 
paragraph) along with a clear description of the changes.
* * * * *
    (b) For classification requests and other submissions, provide 
the following information:
* * * * *
    (2) Describe how encryption keys are generated or managed by 
your product, including algorithms and modulus sizes supported.
    (3) Describe whether the products incorporate or use ``non-
standard cryptography'' defined as incorporating or using 
proprietary, unpublished cryptographic functionality, including 
encryption algorithms or protocols that have not been adopted or 
approved by a duly recognized international standards body. Provide 
a textual description and the source code of the algorithm.
* * * * *
    (6) State all communication protocols (e.g., X.25, Telnet, TCP, 
IEEE 802.11, IEEE 802.16, SIP . . .) and cryptographic protocols and 
methods (e.g., SSL, TLS, SSH, IPSEC, IKE, SRTP, ECC, MD5, SHA, 
X.509, PKCS standards . . .), including application programming 
interfaces (APIs), that are supported and describe how they are 
used.
    (7) State how the product is written to preclude user 
modification of the encryption algorithms, key management and key 
space.
* * * * *
    (9) Identify the version(s) and type(s) of compilers, runtime 
interpreters or code assemblers used, as applicable.
    (10) With respect to your company's encryption products, are any 
of the products (or its encryption components) manufactured outside 
the United States? If yes, provide manufacturing locations (city and 
country).
    (11) See Sec.  740.17(b)(2) of the EAR. Describe whether the 
item meets any of the Sec.  740.17(b)(2) criteria. Provide a 
comparison of your item against the criteria listed in each 
paragraph of Sec.  740.17(b)(2). Give specific data for each of the 
parameters listed, as applicable (e.g., maximum aggregate encrypted 
throughput, maximum number of encrypted endpoints, maximum satellite 
or terrestrial wireless transmission rates, terrestrial wireless 
operating range, customized cryptography, network penetration 
capability, cryptanalytic capability and ``non-standard 
cryptography'').
    (12) See Sec.  740.17(b)(3) of the EAR. Describe whether the 
product meets any of the criteria described under each of the 
paragraphs in Sec.  740.17(b)(3) (e.g., chip, chipset, electronic 
assembly, programmable logic device, cryptographic library, 
cryptographic development kit, ``non-standard cryptography,'' 
digital forensics, and ``cryptographic activation'').
    (13) See Sec.  740.17(b)(2)(iii) of the EAR. For products which 
incorporate an ``open cryptographic interface'' as defined in part 
772 of the EAR, describe the cryptographic interface.
    (14) For products with IPsec capabilities:
    (i) Please describe your product's implementation of IKE vendor 
IDs, including vendor specific and capability IDs; and

[[Page 64675]]

    (ii) Please specify which version of IKE you use (IKEv1 or 
IKEv2).
* * * * *
    (d) * * *
    (1) If applicable, reference the executable (object code) 
product that was previously classified by BIS;
* * * * *

0
22. Supplement No. 8 to part 742 is amended by:
0
a. Revising the introductory text;
0
b. Revising paragraphs (a) introductory text, (a)(5) introductory text, 
and (a)(6);
0
c. Adding paragraphs (a)(7) through (12);
0
d. Revising paragraphs (b)(2) and (3) and (c)(1); and
0
e. Adding paragraph (c)(4).
    The revisions and additions read as follows:

Supplement No. 8 to Part 742--Self-Classification Report for Encryption 
Items

    This supplement provides certain instructions and requirements 
for self-classification reporting to BIS and the ENC Encryption 
Request Coordinator (Ft. Meade, MD) of encryption commodities, 
software and components exported or reexported pursuant to Sec.  
740.17(b)(1) of the EAR. See Sec.  740.17(e)(3) of the EAR for 
additional instructions and requirements pertaining to this 
supplement, including when to report and how to report.
    (a) Information to report. The following information is required 
in the file format as described in paragraph (b) of this supplement, 
for each encryption item subject to the requirements of this 
supplement and Sec. Sec.  740.17(b)(1) and 740.17(e)(3) of the EAR:
* * * * *
    (5) Encryption authorization type identifier, selected from one 
of the following, which denote eligibility under License Exception 
ENC Sec.  740.17(b)(1):
* * * * *
    (6) Item type descriptor, selected from one of the following:
    (i) Access point;
    (ii) Cellular;
    (iii) Computer or computing platforms;
    (iv) Computer forensics;
    (v) Cryptographic accelerator;
    (vi) Data backup and recovery;
    (vii) Database;
    (viii) Disk/drive encryption;
    (ix) Distributed computing;
    (x) Email communications;
    (xi) Fax communications;
    (xii) File encryption;
    (xiii) Firewall;
    (xiv) Gateway;
    (xv) Intrusion detection;
    (xvi) Identity management;
    (xvii) Key exchange;
    (xviii) Key management;
    (xix) Key storage;
    (xx) Link encryption;
    (xxi) Local area networking (LAN);
    (xxii) Metropolitan area networking (MAN);
    (xxiii) Mobility and mobile applications n.e.s.;
    (xxiv) Modem;
    (xxv) Multimedia n.e.s.;
    (xxvi) Network convergence or infrastructure n.e.s.;
    (xxvii) Network forensics;
    (xxviii) Network intelligence;
    (xxix) Network or systems management (OAM/OAM&P);
    (xxx) Network security monitoring;
    (xxxi) Network vulnerability and penetration testing;
    (xxxii) Operating system;
    (xxxiii) Optical networking;
    (xxxiv) Radio communications;
    (xxxv) Router;
    (xxxvi) Satellite communications;
    (xxxvii) Short range wireless n.e.s.;
    (xxxviii) Storage Area Networking (SAN);
    (xxxix) 3G/4G/5G/LTE/WiMAX;
    (xl) Trusted computing;
    (xli) Videoconferencing;
    (xlii) Virtual private networking (VPN);
    (xliii) Voice communications n.e.s.;
    (xliv) Voice over Internet Protocol (VoIP);
    (xlv) Wide Area Networking (WAN);
    (xlvi) Wireless Local Area Networking (WLAN);
    (xlvii) Wireless Personal Area Networking (WPAN);
    (xlviii) Test equipment n.e.s.; or
    (xlix) Other (please specify).
    (7) Name of company or individual submitting the report (50 
characters or less).
    (8) Telephone number (50 characters or less).
    (9) Email address (50 characters or less).
    (10) Mailing address (50 characters or less).
    (11) With respect to your company's encryption products, do they 
incorporate encryption components produced or furnished by non-U.S. 
sources or vendors? Enter `YES', `NO', or if necessary, `N/A' (250 
characters or less).
    (12) With respect to your company's encryption products, are any 
of them manufactured in non-U.S. locations?'' If yes, list the non-
U.S. manufacturing locations by city and country. If necessary, 
enter `NONE' or `N/A' (250 characters or less).
    (b) * * *
    (2) Each line of your encryption self-classification report 
(.csv file) must consist of twelve entries as further described in 
this supplement.
    (3) The first line of the .csv file must consist of the 
following twelve entries (i.e., match the following) without 
alteration or variation: PRODUCT NAME, MODEL NUMBER, MANUFACTURER, 
ECCN, AUTHORIZATION TYPE, ITEM TYPE, SUBMITTER NAME, TELEPHONE 
NUMBER, E-MAIL ADDRESS, MAILING ADDRESS, NON-U.S. COMPONENTS, NON-
U.S. MANUFACTURING LOCATIONS.

    Note to paragraph (b)(3): These first twelve entries (i.e., 
first row) of an encryption self-classification report in .csv 
format correspond to the twelve column headers of a spreadsheet data 
file. The responses provided under column headers 7 through 12 
(SUBMITTER NAME through NON-U.S. MANUFACTURING LOCATIONS) relate to 
the company as a whole, and thus should be entered the same for each 
product (i.e., only one point of contact, one `YES' or `NO' answer 
to whether any of the reported products incorporate non-U.S. sourced 
encryption components, and one list of non-U.S. manufacturing 
locations, is required for the report). However, even though the 
information is the same for each product, please duplicate this 
information into each row of the spreadsheet, leaving no entry 
blank, so each product has the same identifying company information.

* * * * *
    (c) Other instructions. (1) The information provided in 
accordance with this supplement and Sec. Sec.  740.17(b)(1) and 
740.17(e)(3) of the EAR must identify product offerings as they are 
typically distinguished in inventory, catalogs, marketing brochures 
and other promotional materials.
* * * * *
    (4) Only products self-classified by the exporter or reexporter 
must be reported. Products submitted for classification by the 
Bureau of Industry and Security for which a CCATS is issued do not 
need to be reported.

PART 743--[AMENDED]

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

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 
16129, 3 CFR, 2014 Comp., p. 223; 78 FR 16129; Notice of August 4, 
2016, 81 FR 52587 (August 8, 2016).


0
24. Section 743.2 is amended by revising paragraph (b) to read as 
follows:


Sec.  743.2  High performance computers: Post shipment verification 
reporting.

* * * * *
    (b) Requirement. Exporters must file post-shipment reports and keep 
records in accordance with recordkeeping requirements in part 762 of 
the EAR 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 Computer Tier 3 
destinations, where the ``Adjusted Peak Performance'' (``APP'') is 
greater than that listed in ECCN 4A003.b in the Commerce Control List, 
Supplement No. 1 to part 774 of the EAR.
* * * * *

PART 744--[AMENDED]

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

    Authority: 50 U.S.C. 4601 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.

[[Page 64676]]

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 September 18, 
2015, 80 FR 57281 (September 22, 2015); Notice of November 12, 2015, 
80 FR 70667 (November 13, 2015); Notice of January 20, 2016, 81 FR 
3937 (January 22, 2016); Notice of August 4, 2016, 81 FR 52587 
(August 8, 2016).

Supplement No. 4 to Part 744 [Amended]

0
26. Supplement No. 4 to part 744 is amended by removing the reference 
``5D002 or 5A002.'' and adding in its place ``5A002, 5A004 or 5D002.'' 
in the third column ``License Requirement,'' in the entry for Ecuador.

PART 748--[AMENDED]

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

    Authority: 50 U.S.C. 4601 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 4, 2016, 81 FR 
52587 (August 8, 2016).


0
28. Section 748.1 is amended by revising paragraphs (a) and (d) 
introductory text to read as follows:


Sec.  748.1  General provisions.

    (a) Scope. In this part, references to the Export Administration 
Regulations or EAR are references to 15 CFR chapter VII, subchapter C. 
The provisions of this part involve requests for classifications and 
advisory opinions, export license applications, reexport license 
applications, and certain license exception notices subject to the EAR. 
All terms, conditions, provisions, and instructions, including the 
applicant and consignee certifications, contained in electronic or 
paper form(s) are incorporated as part of the EAR. For the purposes of 
this part, the term ``application'' refers to both electronic 
applications and the Form BIS-748P: Multipurpose Application.
* * * * *
    (d) Electronic filing required. All export and reexport license 
applications (other than Special Iraq Reconstruction License 
applications), License Exception AGR notifications, requests to 
authorize use of License Exception STA for ``600 series'' end items 
(which are currently submitted as export license applications) and 
classification requests and their accompanying documents must be filed 
via BIS's Simplified Network Application Processing system (SNAP-R), 
unless BIS authorizes submission via the paper forms BIS 748-P 
(Multipurpose Application Form), BIS-748P-A (Item Appendix) and BIS-
748P-B, (End-User Appendix). Only original paper forms may be used. 
Facsimiles or reproductions are not acceptable.

0
29. Section 748.3 is amended by revising the section heading, the last 
sentence in paragraph (a), and paragraph (d) to read as follows:


Sec.  748.3  Classification requests and advisory opinions.

    (a) * * * The encryption provisions in the EAR require the 
submission of a classification request in accordance with Sec.  
740.17(d) of the EAR in order for certain items to be eligible for 
export and reexport under License Exception ENC (see Sec.  740.17 of 
the EAR) or to be released from ``EI'' controls (see Sec. Sec.  
740.17(b)(2) and 740.17(b)(3) of the EAR).
    (d) Classification requests for encryption items. A classification 
request associated with encryption items transferred from the U.S. 
Munitions List consistent with Executive Order 13026 of November 15, 
1996 (3 CFR, 1996 Comp., p. 228) and pursuant to the Presidential 
Memorandum of that date may be required to determine eligibility under 
License Exception ENC or for release from ``EI'' controls. Refer to 
Supplement No. 6 to part 742 of the EAR for a complete list of 
technical information that is required for encryption classification 
requests. Refer to Sec.  740.17(e)(3) and Supplement No. 8 to part 742 
of the EAR for information that is required to be submitted in a self-
classification report. Refer to Sec.  740.17(b) of the EAR for 
instructions regarding mass market encryption commodities and software, 
including self-classifications and classification requests. Refer to 
Sec.  740.17 of the EAR for the provisions of License Exception ENC, 
including encryption self-classifications, classification requests and 
sales reporting. All classification requests, notifications and reports 
submitted to BIS pursuant to Sec. Sec.  740.17 and 742.15(b) of the EAR 
will be reviewed by the ENC Encryption Request Coordinator, Ft. Meade, 
MD.
* * * * *

0
30. Section 748.7 is amended by revising paragraphs (a) and (d) to read 
as follows:


Sec.  748.7  Registering for electronic submission of license 
applications and related documents.

    (a) Scope. This section describes the procedures for registering to 
submit electronic documents to BIS. The procedures in this section 
apply to submission of export and reexport license applications (other 
than Special Iraq Reconstruction Licenses), classification requests, 
and License Exception AGR notifications.
* * * * *
    (d) Role of individual users. An individual user may submit to BIS 
export and reexport license applications (other than Special Iraq 
Reconstruction Licenses), classification requests, and License 
Exception AGR notifications.
* * * * *


Sec.  748.8   [Amended]

0
31. Section 748.8 is amended in paragraph (r) by removing the phrase 
``and encryption registrations'' and removing and reserving paragraphs 
(s) and (t).
0
32. Section 748.9 is amended by revising paragraph (c)(1)(viii) to read 
as follows:


Sec.  748.9  Support documents for evaluation of foreign parties in 
license applications.

* * * * *
    (c) * * *
    (1) * * *
    (viii) The license application is submitted for encryption 
commodities controlled under ECCN 5A002, 5A004 or 5B002.
* * * * *

0
33. Supplement No. 1 to Part 748 is amended by revising the Block 5 
paragraph to read as follows:

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

* * * * *
    Block 5: Type of Application. Export. If the items are located 
within the United States, and you wish to export those items, mark 
the Box labeled ``Export'' with an (X). Reexport. If the items are 
located outside the United States, mark the Box labeled ``Reexport'' 
with an (X).
    Classification. If you are requesting BIS to classify your item 
against the Commerce Control List (CCL), mark the Box labeled 
``Classification Request'' with an (X). If you are submitting a 
License Exception STA eligibility request pursuant to Sec.  
740.20(g), mark the box labeled ``Export'' with an (X) and then 
proceed to Block 6 of this supplement for instructions specific to 
such requests.
* * * * *

0
34. Supplement No. 2 to part 748 is amended by:
0
a. Revising paragraph (r) introductory text;
0
b. Removing and reserving paragraph (r)(1);
0
c. Revising paragraph (r)(2)(ii)(B)(2);
0
d. Removing paragraph (r)(2)(iii); and
0
e. Removing and reserving paragraphs (s) and (t).
    The revisions read as follows:

[[Page 64677]]

Supplement No. 2 to Part 748--Unique Application and Submission 
Requirements

* * * * *
    (r) Encryption classification requests. Failure to follow the 
instructions in this paragraph may delay consideration of your 
encryption classification request.
* * * * *
    (2) * * *
    (ii) * * *
    (B) * * *
    (2) ``Mass market encryption'' if you are submitting an 
encryption classification request for certain mass market encryption 
items (Sec.  740.17(b) of the EAR).
* * * * *

Supplement No. 7 to Part 748 [Amended]

0
35. Supplement No. 7 to part 748 is amended by removing the reference 
to 3B001.c in the third column ``Eligible items (by ECCN),'' in the 
following entries under China (People's Republic of):
0
a. Advanced Micro-Fabrication Equipment, Inc., China (two places);
0
b. Applied Materials (China), Inc., in destinations identified by both 
one asterisk (*) and two asterisks (**) (two places)
0
c. Lam Research Service Co., Ltd, in Destinations Identified by both a 
single asterisk (*), (in two places) and by two asterisks (**), (two 
places)
0
d. Samsung China Semiconductor Co. Ltd;
0
e. Semiconductor Manufacturing International Corporation;
0
f. Shanghai Huahong Grace Semiconductor Manufacturing Corporation;
0
g. SK hynix Semiconductor (China) Ltd; and
0
h. SK hynix Semiconductor (Wuxi) Ltd.
0
36. Supplement No. 7 to part 748 is further amended by removing the 
phrase ``ECCN 5A002 that have been classified by BIS as eligible for 
License Exception ENC under paragraph (b)(2) or (b)(3) of Section 
740.17 of the EAR, or classified by BIS as a mass market item under 
paragraph (b)(3) of Section 742.15 of the EAR).'' and adding in its 
place ``ECCN 5A002 that have been classified by BIS as eligible for 
License Exception ENC under paragraph (b)(2) or (3) of Sec.  740.17 of 
the EAR).'' for ``Semiconductor Manufacturing International 
Corporation'' under China (People's Republic of).
0
37. Supplement No. 7 to part 748 is further amended by removing 
``(limited to production technology for integrated circuits controlled 
by ECCNs 5A002 or 5A992 that have been successfully reviewed under the 
encryption review process specified in Sections 740.17(b)(2) or 
740.17(b)(3) and 742.15 of the EAR)'' and adding in its place 
``(controlled by ECCNs 5A002, 5A004, or 5A992 that have been 
successfully reviewed under the encryption review process specified in 
Sections 740.17(b)(2) or 740.17(b)(3) of the EAR)'' in the third column 
``Eligible items (by ECCN)'' for ``Shanghai Huahong Grace Semiconductor 
Manufacturing Corporation'' under China (People's Republic of).

PART 770--[AMENDED]

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

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 4, 
2016, 81 FR 52587 (August 8, 2016).


0
39. Section 770.2 is amended by revising paragraphs (l) and (m) 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. Assemblies performing analog-to-digital conversions are 
evaluated under Category 3--Electronics, ECCN 3A002.h.
    (2) Related equipment classified under ECCN 4A003.g may be exported 
or reexported under License Exceptions GBS or CIV. When related 
equipment is exported or reexported as part of a computer system, NLR 
or License Exception APP is available for the computer system and the 
related equipment, as appropriate.
* * * * *
    (m) Interpretation 13: Encryption commodities and software 
controlled for EI reasons. Encryption commodities and software 
controlled for EI reasons under ECCNs 5A002, 5A004 and 5D002 may be 
pre-loaded on a laptop, handheld device or other computer or equipment 
and exported under the tools of trade provision of License Exception 
TMP or the personal use exemption under License Exception BAG, subject 
to the terms and conditions of such License Exceptions. Neither License 
Exception TMP nor License Exception BAG contains a reporting 
requirement. Like other ``information security'' ``software,'' 
components, ``electronic assemblies'' or modules, the control status of 
encryption commodities and software is determined in Category 5--Part 2 
even if they are bundled, commingled or incorporated in a computer or 
other equipment. However, commodities and software specially designed 
for medical end use that incorporate an item in Category 5--Part 2 are 
not controlled in Category 5--Part 2. See paragraph (a) of Supplement 
No. 3 to part 774 (Statements of Understanding) of the EAR.

PART 772--[AMENDED]

0
40. 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 
4, 2016, 81 FR 52587 (August 8, 2016).


0
41. Section 772.1 is amended by:
0
a. Revising the terms ``Accuracy'' and ``Airship;''
0
b. Revising the terms ``Circular Error Probable,'' ``Cryptography,'' 
and ``FADEC;''
0
c. Removing the term ``Fixed;''
0
d. Revising the terms ``Frequency switching time'' and ``Full Authority 
Digital Engine Control Systems;''
0
e. Revising the term ``Government end users (as applied to encryption 
items);''
0
f. In the definition of ``Information security,'' removing ``(Cat 4, 
5P1, 5P2, 8, GSN)'' and adding in its place ``(Cat 5P2, GSIN, GSN)'';
0
g. Revising the term ``Laser;''
0
h. Adding in alphabetical order the terms ``Less sensitive government 
end users (applied to encryption items),'' ``Lighter-than-air 
vehicles,'' and ``More sensitive government end users (applied to 
encryption items);''
0
i. Removing the term ``Optical amplification;''
0
j. Revising the term ``Publicly available encryption software;''
0
k. Adding in alphabetical order the term ``Pyrotechnic(s);''
0
l. Revising the term ``Source code;'' and
0
m. Removing the term ``System tracks.''
    The revisions and additions read as follows:


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

* * * * *
    Accuracy. (Cat 2, 3, 6, 7 and 8)--``Accuracy'' is usually measured 
in terms of inaccuracy. It is defined as the maximum deviation, 
positive or

[[Page 64678]]

negative, of an indicated value from an accepted standard or true 
value.
* * * * *
    Airship. (Cat 2 and 9) A power-driven airborne vehicle that is kept 
buoyant by a body of gas (usually helium, formerly hydrogen) which is 
lighter than air.
* * * * *
    Circular Error Probable. (``CEP'') (Cat 7) In a circular normal 
distribution, the radius of the circle containing 50% of the individual 
measurements being made, or the radius of the circle within which there 
is a 50% probability of being located.
* * * * *
    Cryptography. (Cat 5P2)--The discipline that embodies principles, 
means and methods for the transformation of data in order to hide its 
information content, prevent its undetected modification or prevent its 
unauthorized use. ``Cryptography'' is limited to the transformation of 
information using one or more `secret parameters' (e.g., crypto 
variables) and/or associated key management.

    Note: ``Cryptography'' does not include `fixed' data compression 
or coding techniques.


    Technical Notes: 
    1. `Secret parameter': a constant or key kept from the knowledge 
of others or shared only within a group.
    2. `Fixed': the coding or compression algorithm cannot accept 
externally supplied parameters (e.g., cryptographic or key 
variables) and cannot be modified by the user.

* * * * *
    FADEC systems. See ``full authority digital engine control 
systems.''
* * * * *
    Frequency switching time. (Cat 3) The time (i.e., delay) taken by a 
signal when switched from an initial specified output frequency, to 
arrive at or within any of the following:
    (1) 100 Hz of a final specified output frequency of 
less than 1 GHz; or
    (2) 0.1 part per million of a final specified output 
frequency equal to or greater than 1 GHz.
* * * * *
    Full Authority Digital Engine Control Systems. (``FADEC Systems'') 
(Cat 9) A digital electronic control system for a gas turbine engine 
that is able to autonomously control the engine throughout its whole 
operating range from demanded engine start until demanded engine shut 
down, in both normal and fault conditions.
* * * * *
    Government end user'' (as applied to encryption items). A 
government end user is any foreign central, regional or local 
government department, agency, or other entity performing governmental 
functions; including governmental research institutions, governmental 
corporations or their separate business units (as defined in part 772 
of the EAR) which are engaged in the manufacture or distribution of 
items or services controlled on the Wassenaar Munitions List, and 
international governmental organizations. This term does not include: 
Utilities (including telecommunications companies and Internet service 
providers); banks and financial institutions; transportation; broadcast 
or entertainment; educational organizations (except public schools and 
universities); civil health and medical organizations (including public 
civilian hospitals); retail or wholesale firms; and manufacturing or 
industrial entities not engaged in the manufacture or distribution of 
items or services controlled on the Wassenaar Munitions List.
* * * * *
    Laser. (Cat 1, 2, 3, 5P1, 6, 7, 8 and 9)--An item that produces 
spatially and temporally coherent light through amplification by 
stimulated emission of radiation. See also: ``Chemical laser;'' ``Super 
High Power Laser;'' and ``Transfer laser.''
    Less sensitive government end users (as applied to encryption 
items). The following ``government end users'' (as defined in this 
Section of the EAR) are considered ``less sensitive'' for the purposes 
of License Exception ENC (Sec.  740.17 of the EAR):
    (1) Local/state/provincial ``government end users'' (departments, 
agencies and entities), including local/state/provincial executive, 
legislative, judicial, police, fire, rescue and public safety agencies.
    (2) National/federal/royal ``government end users'' (departments, 
agencies and entities) providing the following civil government 
functions and services:
    (i) Census and statistics services;
    (ii) Civil public works infrastructure services (construction, 
maintenance, repair, regulation and administration) as follows: 
Buildings, public transportation, roads and highways, trucking;
    (iii) Civil service administration and regulation, including human 
resources and personnel/labor management;
    (iv) Clean water infrastructure services (treatment, supply and 
testing);
    (v) Economic (trade/commerce/investment), business and industrial 
development, promotion, regulation and administration, excluding the 
following end users/end uses:
    (A) Agencies, departments, boards and councils for science and 
technology;
    (B) Research, development and national laboratories (other than as 
specified in paragraphs (2)(xi) (measurements and standards services) 
and (2)(xii) (meteorology/weather/atmospheric services) of this 
definition (below);
    (C) National telecommunications and information technology 
agencies, boards, councils and development authorities (including 
national information center, and Information Communications Technology 
(ICT)/telecommunications infrastructure/spectrum planning, policy, 
regulation and testing);
    (vi) Elections, balloting and polling services;
    (vii) Energy regulation and administration, including oil, gas and 
mining sectors;
    (viii) Environmental/natural resources regulation, administration 
and protection, including wildlife, fisheries and national parks;
    (ix) Food/agriculture regulation and administration;
    (x) Labor/community/social services planning, regulation and 
administration, including: housing and urban development, municipality 
and rural affairs;
    (xi) Measurements and standards services;
    (xii) Meteorology (weather, atmospheric) services;
    (xiii) National archives/museums;
    (xiv) Patents;
    (xv) Pilgrimage and religious affairs;
    (xvi) Postal services;
    (xvii) Public and higher education (excluding government research 
institutions and any agency, institution or affiliate engaged in the 
manufacture or distribution of items or services controlled on the 
Wassenaar Munitions List);
    (xviii) Public health and medicine/pharmaceutical regulation and 
administration;
    (xix) Public libraries;
    (xx) Sports/culture (includes film, commercial broadcasting and the 
arts) promotion, regulation and administration;
    (xxi) Travel/tourism promotion, regulation and administration.
* * * * *
    Lighter-than-air vehicles. (Cat 2 and 9) Balloons and ``airships'' 
that rely on hot air or on lighter-than-air gases such as helium or 
hydrogen for their lift.
* * * * *
    More sensitive government end users (as applied to encryption 
items). The

[[Page 64679]]

following national/federal/royal (departments, agencies and entities) 
``government end users'' (as defined in this section of the EAR) 
providing the following government functions and services, are 
considered ``more sensitive:''
    (1) Agencies, departments, boards and councils for science and 
technology (including research, development and state/national 
laboratories, but not including measurements and standards);
    (2) Currency and monetary authorities (including departments and 
offices of the national/federal/royal reserve);
    (3) Executive agents of state (including offices of president/vice 
president/prime minister, royal courts, national security councils, 
cabinet/council of ministers/supreme councils/executive councils, crown 
princes and other deputies of the rulers, departments and offices of 
political/constitutional/mainland affairs);
    (4) Legislative bodies responsible for the enactment of laws;
    (5) Import/export control, customs and immigration agencies and 
entities;
    (6) Intelligence agencies and entities;
    (7) Judiciary (including supreme courts and other national/federal/
regional/royal high courts and tribunals);
    (8) Maritime, port, railway and airport authorities;
    (9) Military and armed services (including national guard, coast 
guard, security bureaus and paramilitary);
    (10) Ministries, departments and garrisons of defense (including 
defense technology agencies);
    (11) Ministries and departments of finance and taxation (including 
national/federal/royal budget and revenue authorities);
    (12) Ministries and departments of foreign affairs/foreign 
relations/consulates/embassies;
    (13) Ministries of interior, internal/home/mainland affairs, and 
homeland security;
    (14) State/national telecommunications and information technology 
agencies, boards, councils and development authorities (including 
national information/critical infrastructure data centers, and 
Information and Communications Technology (ICT)/telecommunications 
infrastructure/spectrum planning, policy, regulation and testing);
    (15) Police, investigation and other law enforcement agencies and 
entities (including digital crime/cybercrime/computer forensics, 
counter narcotics/counter terrorism/counter proliferation agencies);
    (16) Prisons;
    (17) Public safety agencies and entities (including national/
federal/royal agencies and departments of civil defense, emergency 
management, and first responders).
* * * * *
    Publicly available encryption software. See Sec.  742.15(b) of the 
EAR.
* * * * *
    Pyrotechnic(s). (Cat 1) Mixtures of solid or liquid fuels and 
oxidizers which, when ignited, undergo an energetic chemical reaction 
at a controlled rate intended to produce specific time delays, or 
quantities of heat, noise, smoke, visible light or infrared radiation. 
Pyrophorics are a subclass of pyrotechnics, which contain no oxidizers 
but ignite spontaneously on contact with air.
* * * * *
    Source code (or source language). (Cat 1, 4, 5P2, 6, 7, and 9)--A 
convenient expression of one or more processes that may be turned by a 
programming system into equipment executable form (``object code'' (or 
object language)).
* * * * *

PART 774--[AMENDED]

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

    Authority: 50 U.S.C. 4601 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; 43 
U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. 4305; 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 4, 2016, 81 FR 52587 (August 8, 2016).


0
43. Section 774.1 is amended by adding paragraph (e) to read as 
follows:


Sec.  774.1  Introduction.

* * * * *
    (e) Chemicals identified by Chemical Abstracts Service (CAS) 
number. In some instances chemicals are listed by name and CAS number. 
The list applies to chemicals of the same structural formula (including 
hydrates) regardless of name or CAS number. CAS numbers are shown to 
assist in identifying a particular chemical or mixture, irrespective of 
nomenclature. CAS numbers cannot be used as unique identifiers because 
some forms of the listed chemical have different CAS numbers, and 
mixtures containing a listed chemical may also have different CAS 
numbers.

Supplement No. 1 to Part 774 [Amended]

0
44. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 0, ECCN 0A617 is amended by adding double quotes around the 
term ``laser'' in paragraph (8) of the Related Controls paragraph in 
the List of Items Controlled section.
0
45. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1A001 is amended by removing and reserving paragraph b 
and removing paragraph c from the Items paragraph of the List of Items 
Controlled section.
0
46. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1A002 is amended by adding double quotes around the 
term ``composite'' in the introductory text of Note 1 following Items 
paragraph b.2 of the List of Items Controlled section.
0
47. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1A004, Items paragraph of the List of Items controlled 
is amended by revising paragraphs a.1, b.1, and c.1 and the Technical 
Notes at the end of the Items paragraph to read as follows:

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

* * * * *
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. * * *
    a.1. `Biological agents';
* * * * *
    b. * * *
    b.1. `Biological agents';
* * * * *
    c. * * *
    c.1. `Biological agents';
* * * * *
    Technical Notes:
    1. 1A004 includes equipment, ``components'' that have been 
`identified,' successfully tested to national standards or otherwise 
proven effective, for the detection of or defense against 
radioactive materials ``adapted for use in war,'' `biological 
agents,' chemical warfare agents, `simulants' or ``riot control 
agents,'' even if such equipment or ``components'' are used in civil 
industries such as mining, quarrying, agriculture, pharmaceuticals, 
medical, veterinary, environmental, waste management, or the food 
industry.
    2. `Simulant': A substance or material that is used in place of 
toxic agent (chemical or biological) in training, research, testing 
or evaluation.
    3. For the purposes of 1A004, `biological agents' are pathogens 
or toxins, selected or modified (such as altering purity, shelf 
life, virulence, dissemination characteristics, or resistance to UV 
radiation) to produce casualties in humans or animals, degrade 
equipment or damage crops or the environment.


[[Page 64680]]


0
48. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1A613, Items paragraph of the List of Items controlled 
is amended by revising paragraph c and adding a Nota Bene after 
paragraph y.1 to read as follows:

1A613 Armored and protective ``equipment'' and related commodities, 
as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    c. Military helmets (other than helmets controlled under 
1A613.y.1) providing less than NIJ Type IV protection and 
``specially designed'' helmet shells, liners, or comfort pads 
therefor.

    Note 1: See ECCN 0A979 for controls on police helmets.


    Note 2: See USML Category X(a)(5) and (a)(6) for controls on 
other military helmets.

* * * * *
    y. * * *
    y.1 * * *

    N.B. to paragraph y.1: For other military helmet ``components'' 
or ``accessories,'' see the relevant ECCN in the CCL or USML Entry.

* * * * *
0
49. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1C001, the List of Items Controlled section, the Items 
paragraph is amended by adding double quotes around the term ``laser'' 
in paragraphs (a) and (b) of the Note to 1C001.b.
0
50. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1C002, the List of Items Controlled section is amended 
by revising the Note at the beginning of the Items paragraph to read as 
follows:

1C002 Metal alloys, metal alloy powder and alloyed materials, as 
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:


    Note: 1C002 does not control metal alloys, metal alloy powder 
and alloyed materials, specially formulated for coating purposes.

* * * * *
0
51. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1C006, the List of Items Controlled section, the Items 
paragraph is amended by removing and reserving paragraph .a (including 
the subparagraphs through a.2.e and the Technical Note for 1C006.a.2).
0
52. 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 the Technical Notes at the end of the Items paragraph to 
read as follows:

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

List of Items Controlled

* * * * *
Items:
* * * * *
    Technical Notes:
    1. The `glass transition temperature (Tg)' for 1C008.a.2 
thermoplastic materials, 1C008.a.4 materials and 1C008.f materials 
is determined using the method described in ISO 11357-2 (1999) or 
national equivalents.
    2. The `glass transition temperature (Tg)' for 1C008.a.2 
thermosetting materials and 1C008.a.3 materials is determined using 
the 3-point bend method described in ASTM D 7028-07 or equivalent 
national standard. The test is to be performed using a dry test 
specimen which has attained a minimum of 90% degree of cure as 
specified by ASTM E 2160-04 or equivalent national standard, and was 
cured using the combination of standard- and post-cure processes 
that yield the highest Tg.

0
53. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1C009, List of Items Controlled section, the Items 
paragraph is amended by removing and reserving paragraph a.
0
54. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1C608 is amended by:
0
a. Revising the Related Definitions paragraph in the List of Items 
Controlled section; and
0
b. Revising the Items paragraph of the List of Items Controlled 
section.
    The revisions read as follows:

1C608 Energetic materials and related commodities (see List of Items 
Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Definitions: (1) For purposes of this entry, the term 
`controlled materials' means controlled energetic materials 
enumerated in ECCNs 1C011, 1C111, 1C239, 1C608, or USML Category V. 
(2) For the purposes of this entry, the term `propellants' means 
substances or mixtures that react chemically to produce large 
volumes of hot gases at controlled rates to perform mechanical work.
Items:

    a. `Single base,' `double base,' and `triple base' `propellants' 
having nitrocellulose with nitrogen content greater than 12.6% in 
the form of either:
    a.1. `Sheetstock' or `carpet rolls;' or
    a.2. Grains with diameter greater than 0.10 inches.

    Note: This entry does not control `propellant' grains used in 
shotgun shells, small arms cartridges, or rifle cartridges.

    Technical Notes:
    1. `Sheetstock' is `propellant' that has been manufactured in 
the form of a sheet suitable for further processing.
    2. A `carpet roll' is `propellant' that has been manufactured as 
a sheet, often cut to a desired width, and subsequently rolled up 
(like a carpet).
    3. `Single base' is `propellant' which consists mostly of 
nitrocellulose.
    4.'Double base' `propellant' consist mostly of nitrocellulose 
and nitroglycerine.
    5. `Triple base' consists mostly of nitrocellulose, 
nitroglycerine, and nitroguanidine. Such `propellants' contain other 
materials, such as resins or stabilizers, that could include carbon, 
salts, burn rate modifiers, nitrodiphenylamine, wax, polyethylene 
glycol (PEG), polyglycol adipate (PGA).
    b. Shock tubes containing greater than 0.064 kg per meter (300 
grains per foot), but not more than 0.1 kg per meter (470 grains per 
foot) of `controlled materials.'
    c. Cartridge power devices containing greater than 0.70 kg, but 
not more than 1.0 kg of `controlled materials.'
    d. Detonators (electric or nonelectric) and ``specially 
designed'' assemblies therefor containing greater than 0.01 kg, but 
not more than 0.1 kg of `controlled materials.'
    e. Igniters not controlled by USML Categories III or IV that 
contain greater than 0.01 kg, but not more than 0.1 kg of 
`controlled materials.'
    f. Oil well cartridges containing greater than 0.015 kg, but not 
more than 0.1 kg of `controlled materials.'
    g. Commercial cast or pressed boosters containing greater than 
1.0 kg, but not more than 5.0 kg of `controlled materials.'
    h. Commercial prefabricated slurries and emulsions containing 
greater than 10 kg and less than or equal to thirty-five percent by 
weight of USML `controlled materials.'
    i. [Reserved]
    j. ``Pyrotechnic'' devices ``specially designed'' for commercial 
purposes (e.g., theatrical stages, motion picture special effects, 
and fireworks displays), and containing greater than 3.0 kg, but not 
more than 5.0 kg of `controlled materials.'
    k. Other commercial explosive devices or charges ``specially 
designed'' for commercial applications, not controlled by 1C608.c 
through .g above, containing greater than 1.0 kg, but not more than 
5.0 kg of `controlled materials.'
    l. Propyleneimine (2 methylaziridine) (C.A.S. #75-55-8).
    m. Any oxidizer or `mixture' thereof that is a compound composed 
of fluorine and any of the following: Other halogens, oxygen, or 
nitrogen.

    Note 1 to 1C608.m: Nitrogen trifluoride (NF3)(CAS 7783-54-2) in 
a gaseous state is controlled under ECCN 1C992 and not under ECCN 
1C608.m.


    Note 2 to 1C608.m: Chlorine trifluoride (ClF3)(CAS 7790-91-2) is 
controlled under ECCN 1C111.a.3.f and not under ECCN 1C608.m.



[[Page 64681]]


    Note 3 to 1C608.m: Oxygen difluoride (OF2) is controlled under 
USML Category V.d.10 (see 22 CFR 121.1) and not under ECCN 1C608.m.


    Note to 1C608.l and m: If a chemical in ECCN 1C608.l or .m is 
incorporated into a commercial charge or device described in ECCN 
1C608.c through .k or in ECCN 1C992, the classification of the 
commercial charge or device applies to the item.


    Technical Note to 1C608.m: `Mixture' refers to a composition of 
two or more substances with at least one substance being enumerated 
in 1C011, 1C111, 1C239, 1C608, USML Category V, or elsewhere on the 
USML.

    n. Any explosives, `propellants,' oxidizers, ``pyrotechnics,'' 
fuels, binders, or additives that are ``specially designed'' for 
military application and not enumerated or otherwise described in 
USML Category V or elsewhere on the USML.

0
55. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1E001 is amended by revising the Heading and the first 
NS paragraph in the table of the License Requirements section to read 
as follows:

1E001 ``Technology'' according to the General Technology Note for 
the ``development'' or ``production'' of items controlled by 1A002, 
1A003, 1A004, 1A005, 1A006.b, 1A007, 1A008 1A101, 1B (except 1B608, 
1B613 or 1B999), or 1C (except 1C355, 1C608, 1C980 to 1C984, 1C988, 
1C990, 1C991, 1C995 to 1C999).

License Requirements

* * * * *

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for items      NS Column 1
 controlled by 1A002, 1A003, 1A005,
 1A006.b, 1A007, 1B001 to 1B003, 1B018,
 1C001 to 1C011, or 1C018.
 
                                * * * * *
 

* * * * *
0
56. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, ECCN 1E002 is amended by removing the phrase ``contained in 
aircraft manufacturers' manuals'' and adding in its place ``contained 
in ``aircraft'' manufacturers' manuals'' in the Note to 1E002.f.
0
57. In Supplement No. 1 to Part 774 (the Commerce Control List), the 
Annex to Category 1 is amended by revising paragraph 48 and adding 
paragraph 49 to read as follows:

ANNEX to Category 1

List of Explosives (See ECCNs 1A004 and 1A008)

* * * * *
    48. Energetic ionic materials melting between 343 K (70[deg]C) 
and 373 K (100[deg]C) and with detonation velocity exceeding 6,800 
m/s or detonation pressure exceeding 18 GPa (180 kbar);
    49. BTNEN (Bis(2,2,2-trinitroethyl)-nitramine) (CAS 19836-28-3).

0
58. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 2, ECCN 2B001 is amended by revising paragraphs a, b.1 and 
b.2.a in the Items paragraph of the List of Items Controlled section, 
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;'' as follows (see List 
of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    a. Machine tools for turning having two or more axes which can 
be coordinated simultaneously for ``contouring control'' having any 
of the following:
    a.1. ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    a.2. ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m;

    Note 1: 2B001.a does not control turning machines ``specially 
designed'' for producing contact lenses, having all of the 
following:
    a. Machine controller limited to using ophthalmic based 
``software'' for part programming data input; and
    b. No vacuum chucking.


    Note 2: 2B001.a does not apply to bar machines (Swissturn), 
limited to machining only bar feed thru, 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.
    b. * * *
    b.1. Three linear axes plus one rotary axis which can be 
coordinated simultaneously for ``contouring control'' having any of 
the following:
    b.1.a. ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    b.1.b. ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m;
    b.2. * * *
    b.2.a. ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m;

* * * * *
0
59. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 2, ECCN 2B006 is amended by:
0
a. Revising the NP Column 1 paragraph in the License Requirements 
table;
0
b. Revising the Note following the introductory Items paragraph b.1;
0
c. Revising Items paragraph b.1.c in the List of Items Controlled 
section; and
0
d. Adding double quotes around the term ``laser'' in the Note to Items 
paragraph b.2 in the List of Items Controlled section.
    The revisions read as follows:

2B006 Dimensional inspection or measuring systems, equipment, and 
``electronic assemblies,'' as follows (see List of Items 
Controlled).

License Requirements

* * * * *

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
 
                                * * * * *
NP applies to those items in 2B006.a and    NP Column 1
 .b that meet or exceed the technical
 parameters in 2B206.
 
                                * * * * *
 

* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.1. * * *
    Note: Interferometer and optical-encoder displacement measuring 
systems containing a ``laser'' are only specified by 2B006.b.1.c.
* * * * *
    b.1.c. Measuring systems having all of the following:
    b.1.c.1. Containing a ``laser;''
    b.1.c.2. A ``resolution'' over their full scale of 0.200 nm or 
less (better); and
    b.1.c.3. Capable of achieving a ``measurement uncertainty'' 
equal to or less (better) than (1.6 + L/2,000) nm (L is the measured 
length in mm) at any point within a measuring range, when 
compensated for the refractive index of air and measured over a 
period of 30 seconds at a temperature of 200.01[deg]C; 
or
* * * * *
    b.2. * * *
    Note: 2B006.b.2 does not control optical instruments, such as 
autocollimators, using

[[Page 64682]]

collimated light (e.g., ``laser'' light) to detect angular 
displacement of a mirror.
* * * * *
0
60. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3, ECCN 3A001 is amended by:
0
a. Revising the Heading;
0
b. Revising Items paragraph a.5.a.2 through a.5.a.5, not including the 
Technical Note, in the List of Items Controlled section;
0
c. Revising Items introductory paragraph b, not including the Technical 
Note, and Items paragraph e.1.b, in the List of Items Controlled 
section; and
0
d. Adding double quotes to the term ``accuracy'' in Items paragraph f.
    The revisions read as follows:

3A001 Electronic items as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    a. * * *
    a.5. * * *
* * * * *
    a.5.a.2. A resolution of 10 bit or more, but less than 12 bit, 
with an output rate greater than 500 million words per second;
    a.5.a.3. A resolution of 12 bit or more, but less than 14 bit, 
with an output rate greater than 200 million words per second;
    a.5.a.4. A resolution of 14 bit or more, but less than 16 bit, 
with an output rate greater than 250 million words per second; or
    a.5.a.5. A resolution of 16 bit or more with an output rate 
greater than 65 million words per second;
* * * * *
    b. Microwave or millimeter wave items, as follows:
* * * * *
    e. * * *
    e.1. * * *
    e.1.b. `Secondary cells' having an `energy density' exceeding 
350 Wh/kg at 293 K (20 [deg]C);
* * * * *
0
61. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3, ECCN 3A002 is amended by:
0
a. Revising the Heading;
0
b. Revising the License Requirements and List Based License Exceptions 
sections;
0
c. Revising the Related Controls paragraph in the List of Items 
Controlled section;
0
d. Removing and reserving Items paragraph a.5 of the List of Items 
Controlled section;
0
e. Adding a Nota Bene (N.B.) under the reserved Items paragraphs a.1 to 
a.5 of the List of Items Controlled section;
0
f. Revising Items paragraph a.6 of the List of Items Controlled 
section; and
0
g. Adding Items paragraph h to the List of Items Controlled section.
    The additions and revisions read as follows:

3A002 General purpose ``electronic assemblies,'' modules and 
equipment, as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 2
MT applies to 3A002.h when the parameters   MT Column 1
 in 3A101.a.2.b are met or exceeded.
AT applies to entire entry................  AT Column 1
 

Reporting Requirements: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions, and Validated 
End-User authorizations.

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

LVS: $3000: 3A002.a, .e, .f, and .g
    $5000: 3A002.c to .d, and .h (unless controlled for MT);
GBS: Yes, for 3A002.h (unless controlled for MT)
CIV: Yes, for 3A002.h (unless controlled for MT)
* * * * *

List of Items Controlled

    Related Controls: See Category XV(e)(9) of the USML for certain 
``space-qualified'' atomic frequency standards ``subject to the 
ITAR'' (see 22 CFR parts 120 through 130). See also 3A101, 3A292, 
3A992 and 9A515.x.
* * * * *
Items:

    a. * * *
    a.1. to a.5. [RESERVED]
    N.B.: For waveform digitizers and transient recorders, see 
3A002.h.
    a.6. Digital data recorders having all of the following:
    a.6.a. A sustained `continuous throughput' of more than 6.4 
Gbit/s to disk or solid-state drive memory; and
    a.6.b. A processor that performs analysis of radio frequency 
signal data while it is being recorded;
    Technical Notes:
    1. For recorders with a parallel bus architecture, the 
`continuous throughput' rate is the highest word rate multiplied by 
the number of bits in a word.
    2. `Continuous throughput' is the fastest data rate the 
instrument can record to disk or solid-state drive memory without 
the loss of any information while sustaining the input digital data 
rate or digitizer conversion rate.
* * * * *
    h. ``Electronic assemblies,'' modules or equipment, specified to 
perform all of the following:
    h.1. Analog-to-digital conversions meeting any of the following:
    h.1.a. A resolution of 8 bit or more, but less than 10 bit, with 
an input sample rate greater than 1.3 billion samples per second;
    h.1.b. A resolution of 10 bit or more, but less than 12 bit, 
with an input sample rate greater than 1.0 billion samples per 
second;
    h.1.c. A resolution of 12 bit or more, but less than 14 bit, 
with an input sample rate greater than 1.0 billion samples per 
second;
    h.1.d. A resolution of 14 bit or more but less than 16 bit, with 
an input sample rate greater than 400 million samples per second; or
    h.1.e. A resolution of 16 bit or more with an input sample rate 
greater than 180 million samples per second; and
    h.2. Any of the following:
    h.2.a. Output of digitized data;
    h.2.b. Storage of digitized data; or
    h.2.c. Processing of digitized data;
    N.B.: Digital data recorders, oscilloscopes, ``signal 
analyzers,'' signal generators, network analyzers and microwave test 
receivers, are specified by 3A002.a.6, 3A002.a.7, 3A002.c, 3A002.d, 
3A002.e and 3A002.f, respectively.

    Technical Note: For multiple-channel ``electronic assemblies'' 
or modules, control status is determined by the highest single-
channel specified performance.


    Note: 3A002.h includes ADC cards, waveform digitizers, data 
acquisition cards, signal acquisition boards and transient 
recorders.

0
62. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3, ECCN 3A101 is amended by revising the Related Controls 
paragraph in the List of Items Controlled section to read as follows:

3A101 Electronic equipment, devices, ``parts'' and ``components,'' 
other than those controlled by 3A001, as follows (see List of Items 
Controlled).
* * * * *

List of Items Controlled

Related Controls: See also ECCN 3A002.h for controls on analog-to-
digital ``electronic assemblies,'' modules or equipment.
* * * * *
0
63. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3, ECCN 3A292 is amended by revising the Heading to read as 
follows:

3A292 Oscilloscopes and transient recorders other than those 
controlled by 3A002.h, and ``specially designed'' ``parts'' and 
``components'' therefor.
* * * * *
0
64. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3, ECCN 3B001 is amended by:
0
a. Revising the CIV paragraph in the List Based License Exceptions 
section;
0
b. Removing and reserving Items paragraph c in the List of Items 
Controlled section;
0
c. Revising Items paragraph e.1 in the List of Items Controlled 
section;

[[Page 64683]]

0
d. Removing the word ``etch,'' in Technical Note 1 after Items 
paragraph e.2;
0
e. Adding a Note to Items paragraph f.2;
0
f. Revising Items paragraph f.3 in the List of Items Controlled 
section; and
0
g. Adding Items paragraph f.4 in the List of Items Controlled section.
    The revisions and additions read as follows:

3B001 Equipment for the manufacturing of semiconductor devices or 
materials, as follows (see List of Items Controlled) and ``specially 
designed'' ``components'' and ``accessories'' therefor.
* * * * *

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

* * * * *
CIV: Yes for equipment controlled by 3B001.a.1 and a.2.

List of Items Controlled

* * * * *
Items:
* * * * *
    e. * * *
    e.1. Interfaces for wafer input and output, to which more than 
two functionally different `semiconductor process tools' controlled 
by 3B001.a.1, 3B001.a.2, 3B001.a.3 or 3B001.b are designed to be 
connected; and
* * * * *
    f. * * *
    f.2. * * *
    Note: 3B001.f.2 includes:
--Micro contact printing tools
--Hot embossing tools
--Nano-imprint lithography tools
--Step and flash imprint lithography (S-FIL) tools

    f.3. Equipment ``specially designed'' for mask making having all 
of the following:
    f.3.a. A deflected focused electron beam, ion beam or ``laser'' 
beam; and
    f.3.b. Having any of the following:
    f.3.b.1. A Full-Width Half-Maximum (FWHM) spot size smaller than 
65 nm and an image placement less than 17 nm (mean + 3 sigma); or
    f.3.b.2. [Reserved]
    f.3.b.3. A second-layer overlay error of less than 23 nm (mean + 
3 sigma) on the mask;
    f.4. Equipment designed for device processing using direct 
writing methods, having all of the following:
    f.4.a. A deflected focused electron beam; and
    f.4.b. Having any of the following:
    f.4.b.1. A minimum beam size equal to or smaller than 15 nm; or
    f.4.b.2. An overlay error less than 27 nm (mean + 3 sigma);
* * * * *
0
65. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3, ECCN 3D001 is amended by:
0
a. Revising the Heading;
0
b. Revising the NS paragraph in the License Requirements table; and
0
c. Revising the CIV paragraph in the List Based License Exceptions 
section, to read as follows:

3D001 ``Software'' ``specially designed'' for the ``development'' or 
``production'' of equipment controlled by 3A001.b to 3A002.h or 3B 
(except 3B991 and 3B992).

License Requirements

* * * * *

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to ``software'' for equipment    NS Column 1
 controlled by 3A001.b to 3A001.h, 3A002,
 and 3B.
 
                                * * * * *
 

* * * * *

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

CIV: N/A
* * * * *
0
66. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3, ECCN 3E002 is amended by:
0
a. Revising the CIV paragraph in the List Based License Exception 
section;
0
b. Revising the Technical Note after Items paragraph a in the List of 
Items Controlled section; and
0
c. Revising Items paragraph c, including Notes that follow, to read as 
follows:

3E002 ``Technology'' according to the General Technology Note other 
than that controlled in 3E001 for the ``development'' or 
``production'' of a ``microprocessor microcircuit,'' ``micro-
computer microcircuit'' and microcontroller microcircuit core, 
having an arithmetic logic unit with an access width of 32 bits or 
more and any of the following features or characteristics (see List 
of Items Controlled).

License Requirements

* * * * *

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

CIV: Yes, for deemed exports, as described in Sec.  734.13(a)(2) of 
the EAR, of ``technology'' 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 
not exceeding 50 GFLOPS, or 16-bit or more floating-point operations 
not exceeding 50 GMACS (billions of 16-bit fixed-point multiply-
accumulate operations per second). 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.
* * * * *

List of Items Controlled

* * * * *
Items:
    a. * * *
    Technical Note: A `vector processor unit' is a processor element 
with built-in instructions that perform multiple calculations on 
floating-point vectors (one-dimensional arrays of 32-bit or larger 
numbers) simultaneously, having at least one vector arithmetic logic 
unit and vector registers of at least 32 elements each.
* * * * *
    c. Designed to perform more than eight 16-bit fixed-point 
multiply-accumulate results per cycle (e.g., digital manipulation of 
analog information that has been previously converted into digital 
form, also known as digital ``signal processing'').

    Note 1: 3E002 does not control ``technology'' for multimedia 
extensions.


    Note 2: 3E002 does not control ``technology'' for the 
``development'' or ``production'' of microprocessor cores, having 
all of the following:

    a. Using ``technology'' at or above 0.130 [micro]m; and
    b. Incorporating multi-layer structures with five or fewer metal 
layers.

    Note 3: 3E002 includes ``technology'' for digital signal 
processors and digital array processors.


0
67. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4 is amended by removing Note 3 at the beginning of Category 
4.
0
68. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4, ECCN 4A001 is amended by revising the Related Controls 
paragraph in the List of Items Controlled section to read as follows:

4A001 Electronic computers and related equipment, having any of the 
following (see List of Items Controlled), and ``electronic 
assemblies'' and ``specially designed'' ``components'' therefor.
* * * * *

List of Items Controlled

Related Controls: See also 4A101 and 4A994. Equipment designed or 
rated for transient ionizing radiation is ``subject to the ITAR'' 
(see 22 CFR parts 120 through 130).
* * * * *
0
69. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4, ECCN 4A003 is amended by:
0
a. Removing MT from the Reason for Control paragraph in the License 
Requirements section;
0
b. Removing the MT paragraph from the License Requirements table;
0
c. Revising the AT paragraph in the License Requirements table;

[[Page 64684]]

0
d. Revising the Note in the License Requirements section;
0
e. Revising the List Based License Exceptions sections;
0
f. Removing the last listed item in Note 1 located at the beginning of 
the Items paragraph in the List of Items Controlled section;
0
g. Revising Items paragraph b in the List of Items Controlled section;
0
h. Revising Note 1 to 4A003.c;
0
i. Removing Items paragraph e and revising the citation of the reserved 
paragraphs to read ``.d to f. [Reserved]'';
0
j. Adding a Nota Bene below the reserved paragraphs d to f.
    The revisions and additions read as follows:

4A003 ``Digital computers,'' ``electronic assemblies,'' and related 
equipment therefor, as follows (see List of Items Controlled) and 
``specially designed'' ``components'' therefor.

License Requirements

* * * * *

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
 
                                * * * * *   ............................
AT applies to entire entry (refer to 4A994  AT Column 1
 for controls on ``digital computers''
 with a APP > 0.0128 but <= 12.5 WT).
 


    Note: For all destinations, except those countries in Country 
Group E:1 or E:2 of Supplement No. 1 to part 740 of the EAR, no 
license is required (NLR) for computers with an ``Adjusted Peak 
Performance'' (``APP'') not exceeding 12.5 Weighted TeraFLOPS (WT) 
and for ``electronic assemblies'' described in 4A003.c that are not 
capable of exceeding an ``Adjusted Peak Performance'' (``APP'') 
exceeding 12.5 Weighted TeraFLOPS (WT) in aggregation, except 
certain transfers as set forth in Sec.  746.3 (Iraq).

* * * * *

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

LVS: $5000; N/A for 4A003.b and .c.
GBS: Yes, for 4A003.g and ``specially designed'' ``parts'' and 
``components'' therefor, exported separately or as part of a system.
APP: Yes, for computers controlled by 4A003.b, and ``electronic 
assemblies'' controlled by 4A003.c, to the exclusion of other 
technical parameters. See Sec.  740.7 of the EAR.
CIV: Yes, for 4A003.g.

List of Items Controlled

* * * * *
Items:

    Note 1: 4A003 includes the following:

--`Vector processors' (as defined in Note 7 of the ``Technical Note 
on ``Adjusted Peak Performance'' (``APP'')'');
--Array processors;
--Digital signal processors;
--Logic processors;
--Equipment designed for ``image enhancement.''
* * * * *
    b. ``Digital computers'' having an ``Adjusted Peak Performance'' 
(``APP'') exceeding 12.5 weighted TeraFLOPS (WT);
    c. * * *

    Note 1: 4A003.c applies only to ``electronic assemblies'' and 
programmable interconnections not exceeding the limit in 4A003.b 
when shipped as unintegrated ``electronic assemblies.''

* * * * *
    d. to f. [Reserved]
    N.B.: For ``electronic assemblies,'' modules or equipment, 
performing analog-to-digital conversions, see 3A002.h.
* * * * *
0
70. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4, ECCN 4D001 is amended by:
0
a. Removing NP from the Reason for Control paragraph in the License 
Requirements section;
0
b. Removing the sentence directly below the License Requirements table;
0
c. Revising the TSR paragraph in the List Based License Exceptions 
section;
0
d. Revising the STA paragraph in the Special Conditions for STA 
section;
0
e. Revising Items paragraph b.1 in the List of Items Controlled 
section.
    The revisions are set forth below:

4D001 ``Software'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, CC, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
CC applies to ``software'' for              CC Column 1
 computerized finger-print equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry................  AT Column 1
 

    Reporting Requirements: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions, and Validated 
End-User authorizations.

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

* * * * *
TSR: Yes, except for ``software'' for the ``development'' or 
``production'' of commodities with an ``Adjusted Peak Performance'' 
(``APP'') exceeding 12.5 WT.
* * * * *

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``software'' ``specially designed'' for the ``development'' or 
``production'' of equipment specified by ECCN 4A001.a.2 or for the 
``development'' or ``production'' of ``digital computers'' having an 
`Adjusted Peak Performance' (`APP') exceeding 12.5Weighted TeraFLOPS 
(WT) to any of the destinations listed in Country Group A:6 (See 
Supplement No.1 to part 740 of the EAR).

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.1. ``Digital computers'' having an ``Adjusted Peak 
Performance'' (``APP'') exceeding 6.0 Weighted TeraFLOPS (WT);
* * * * *
0
71. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 4, ECCN 4E001, is amended by:
0
a. Removing NP from the Reason for Control paragraph in the License 
Requirements section;
0
b. Removing the sentence directly below the License Requirements table;
0
c. Revising the TSR paragraph in the List Based License Exceptions 
section;
0
d. Revising the STA paragraph in the Special Conditions for STA 
section;
0
e. Revising Items paragraph b.1 in the List of Items Controlled 
section.
    The revisions read as follows:

4E001 ``Technology'' as follows (see List of Items Controlled).

License Requirements

    Reason for Control: NS, MT, CC, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
MT applies to ``technology'' for items      MT Column 1
 controlled by 4A001.a and 4A101 for MT
 reasons.
CC applies to ``technology'' for            CC Column 1
 computerized fingerprint equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry................  AT Column 1
 

    Reporting Requirements: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions, and Validated 
End-User authorizations.

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

* * * * *
TSR: Yes, except for ``technology'' for the ``development'' or 
``production'' of

[[Page 64685]]

commodities with an ``Adjusted Peak Performance'' (``APP'') 
exceeding 12.5 WT.
* * * * *

Special Conditions for STA

STA: License Exception STA may not be used to ship or transmit 
``technology'' according to the General Technology Note for the 
``development'' or ``production'' of any of the following equipment 
or ``software'': a. Equipment specified by ECCN 4A001.a.2; b. 
``Digital computers'' having an `Adjusted Peak Performance' (`APP') 
exceeding 12.5 Weighted TeraFLOPS (WT); or c. ``software'' specified 
in the License Exception STA paragraph found in the License 
Exception section of ECCN 4D001 to any of the destinations listed in 
Country Group A:6 (See Supplement No. 1 to part 740 of the EAR).

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.1. ``Digital computers'' having an ``Adjusted Peak 
Performance'' (``APP'') exceeding 6.0 Weighted TeraFLOPS (WT);
* * * * *

0
72. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 1 is amended by removing Nota Bene 2 (N.B.2) from Note 
1 at the beginning of Category 5--Part 1 and changing ``N.B.1'' to read 
``N.B''.

Category 5--Telecommunications and ``Information Security''

Part 1--Telecommunications

    Notes: 

    1. * * *
    N.B.: For ``lasers'' ``specially designed'' for 
telecommunications equipment or systems, see ECCN 6A005.
* * * * *
0
73. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 1, ECCN 5A001 is amended by revising paragraph d in 
the Items paragraph of the List of Items Controlled section to read as 
follows:

5A001 Telecommunications systems, equipment, ``components'' and 
``accessories,'' as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    d. ``Electronically steerable phased array antennas'' as 
follows:
    d.1. Rated for operation above 31.8 GHz, but not exceeding 57 
GHz, and having an Effective Radiated Power (ERP) equal to or 
greater than +20 dBm (22.15 dBm Effective Isotropic Radiated Power 
(EIRP));
    d.2. Rated for operation above 57 GHz, but not exceeding 66 GHz, 
and having an ERP equal to or greater than +24 dBm (26.15 dBm EIRP);
    d.3. Rated for operation above 66 GHz, but not exceeding 90 GHz, 
and having an ERP equal to or greater than +20 dBm (22.15 dBm EIRP);
    d.4. Rated for operation above 90 GHz;

    Note:  5A001.d does not control ``electronically steerable 
phased array antennas'' for landing systems with instruments meeting 
ICAO standards covering Microwave Landing Systems (MLS).

* * * * *
0
74. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 1, ECCN 5B001 is amended by removing and reserving 
paragraph b.2.b and revising paragraph b.4 in the Items paragraph of 
the List of Items Controlled section to read as follows:

5B001 Telecommunication test, inspection and production equipment, 
``components'' and ``accessories,'' as follows (see List of Items 
Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.4. Radio equipment employing Quadrature-Amplitude-Modulation 
(QAM) techniques above level 1,024.

0
75. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 1, ECCN 5D001 is amended by revising paragraph d.4 in 
the Items paragraph of the List of Items Controlled section to read as 
follows:

5D001 ``Software'' as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    d. * * *
    d.4. Radio equipment employing Quadrature-Amplitude-Modulation 
(QAM) techniques above level 1,024.

0
76. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 1, ECCN 5E001 is amended by:
0
a. Removing and reserving Items paragraph c.2.b of the List of Items 
Controlled section;
0
b. Revising the Note to Items paragraph c.2.c;
0
c. Revising Items paragraph c.4.a of the List of Items Controlled 
section to read as follows:

5E001 ``Technology'' as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    c. * * *
    c.2. * * *
    c.2.c. * * *
    Note: 5E001.c.2.c applies to ``technology'' for the 
``development'' or ``production'' of systems using an optical local 
oscillator in the receiving side to synchronize with a carrier 
``laser.''
* * * * *
    c.4. * * *
    c.4.a. Quadrature-Amplitude-Modulation (QAM) techniques above 
level 1,024; or
* * * * *
0
77. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2 is amended by:
0
a. Removing and reserving Note 1, including the Nota bene, at the 
beginning of the Category;
0
b. Revising Note 2;
0
c. Revising the introductory text to Note 3;
0
d. Revising the Technical Note below paragraph b.4 in Note 3;
0
e. Revising paragraph 1.b in the Note to the Cryptography Note;
0
f. Revising the Nota Bene to Note 3 (Cryptography Note);
0
g. Revising the introductory text to Note 4; and
0
h. Adding the heading ``I. CRYPTOGRAPHIC ``INFORMATION SECURITY'' 
following the heading that reads ``A. ``END ITEMS,'' ``EQUIPMENT,'' 
``ACCESSORIES,'' ``ATTACHMENTS,'' ``PARTS,'' ``COMPONENTS,'' AND 
``SYSTEMS''.
    The revisions and additions read as follows:

CATEGORY 5--TELECOMMUNICATIONS AND ``INFORMATION SECURITY''

Part 2--``INFORMATION SECURITY''

* * * * *
    Note 2: Category 5--Part 2, ``information security'' products, 
when accompanying their user for the user's personal use or as tools 
of trade, are eligible for License Exceptions TMP or BAG, subject to 
the terms and conditions of these license exceptions.
    Note 3: Cryptography Note: ECCNs 5A002, 5A003, 5A004 and 5D002, 
do not control items as follows:
* * * * *
    b. * * *
    4. * * *
    Technical Note: For the purpose of the Cryptography Note, 
`executable software' means ``software'' in executable form, from an 
existing hardware component excluded from 5A002, 5A003 or 5A004 by 
the Cryptography Note.
    Note: * * *
    Note to the Cryptography Note:
    1. * * *
    b. The price and information about the main functionality of the 
item are available before purchase without the need to consult the 
vendor or supplier. A simple price inquiry is not considered to be a 
consultation.

[[Page 64686]]

    2. * * *
    N.B. to Note 3 (Cryptography Note): You must submit a 
classification request or self-classification report to BIS for mass 
market encryption commodities and software eligible for the 
Cryptography Note employing a key length greater than 64 bits for 
the symmetric algorithm (or, for commodities and software not 
implementing any symmetric algorithms, employing a key length 
greater than 768 bits for asymmetric algorithms or greater than 128 
bits for elliptic curve algorithms) in accordance with the 
requirements of Sec.  740.17(b) of the EAR in order to be released 
from the ``EI'' and ``NS'' controls of ECCN 5A002 or 5D002.

    Note 4: Category 5--Part 2 does not apply to items incorporating 
or using ``cryptography'' and meeting all of the following:

* * * * *

A. ``END ITEMS,'' ``EQUIPMENT,'' ``ACCESSORIES,'' ``ATTACHMENTS,'' 
``PARTS,'' ``COMPONENTS,'' AND ``SYSTEMS''

I. Cryptographic ``Information Security''

0
78. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2, ECCN 5A002 is amended by:
0
a. Revising the Heading;
0
b. Revising the License Requirements section;
0
c. Revising the Related Controls paragraph in the List of Items 
Controlled section; and
0
d. Revising Items paragraph in the List of Items Controlled section.
    The revisions read as follows:

5A002 ``Information security'' systems, equipment and 
``components,'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, AT, EI

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
AT applies to entire entry................  AT Column 1
EI applies to entire entry................  Refer to Sec.   742.15 of
                                             the EAR
 


    License Requirements Note:  See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

* * * * *

 List of Items Controlled

Related Controls: (1) ECCN 5A002.a controls ``components'' providing 
the means or functions necessary for ``information security.'' All 
such ``components'' are presumptively ``specially designed'' and 
controlled by 5A002.a. (2) See USML Categories XI (including XI(b)) 
and XIII(b) (including XIII(b)(2)) for controls on systems, 
equipment, and components described in 5A002.d or .e that are 
subject to the ITAR. (3) After classification or self-classification 
in accordance with Sec.  740.17(b) of the EAR, mass market 
encryption commodities that meet eligibility requirements are 
released from ``EI'' and ``NS'' controls. These commodities are 
designated 5A992.c.
* * * * *
Items:
    a. Systems, equipment and components, for cryptographic 
``information security,'' as follows:
    N.B.: For the control of Global Navigation Satellite Systems 
(GNSS) receiving equipment containing or employing decryption, see 
ECCN 7A005, and for related decryption ``software'' and 
``technology'' see 7D005 and 7E001.
    a.1. Designed or modified to use ``cryptography'' employing 
digital techniques performing any cryptographic function other than 
authentication, digital signature, or execution of copy-protected 
``software,'' and having any of the following:
    Technical Notes:
    1. Functions for authentication, digital signature and the 
execution of copy-protected ``software'' include their associated 
key management function.
    2. Authentication includes all aspects of access control where 
there is no encryption of files or text except as directly related 
to the protection of passwords, Personal Identification Numbers 
(PINs) or similar data to prevent unauthorized access.
    a.1.a. A ``symmetric algorithm'' employing a key length in 
excess of 56-bits; or
    Technical Note: In Category 5--Part 2, parity bits are not 
included in the key length.
    a.1.b. An ``asymmetric algorithm'' where the security of the 
algorithm is based on any of the following:
    a.1.b.1. Factorization of integers in excess of 512 bits (e.g., 
RSA);
    a.1.b.2. Computation of discrete logarithms in a multiplicative 
group of a finite field of size greater than 512 bits (e.g., Diffie-
Hellman over Z/pZ); or
    a.1.b.3. Discrete logarithms in a group other than mentioned in 
5A002.a.1.b.2 in excess of 112 bits (e.g., Diffie-Hellman over an 
elliptic curve);
    a.2. [Reserved]
    N.B.: See 5A004.a for items formerly specified in 5A002.a.2.

    Note: 5A002.a does not control any of the following:
    (a) Smart cards and smart card `readers/writers' as follows:
    (1) A smart card or an electronically readable personal document 
(e.g., token coin, e-passport) that meets any of the following:
    a. The cryptographic capability is restricted for use in 
equipment or systems, excluded from 5A002, 5A003 or 5A004 by Note 4 
in Category 5--Part 2 or entries (b) to (i) of this Note, and cannot 
be reprogrammed for any other use; or
    b. Having all of the following:
    1. It is specially designed and limited to allow protection of 
`personal data' stored within;
    2. Has been, or can only be, personalized for public or 
commercial transactions or individual identification; and
    3. Where the cryptographic capability is not user-accessible;

    Technical Note: `Personal data' includes any data specific to a 
particular person or entity, such as the amount of money stored and 
data necessary for authentication.
    (2). `Readers/writers' specially designed or modified, and 
limited, for items specified by (a)(1) of this Note;
    Technical Note: `Readers/writers' include equipment that 
communicates with smart cards or electronically readable documents 
through a network.
    (b) Cryptographic equipment specially designed and limited for 
banking use or `money transactions';
    Technical Note: `Money transactions' in 5A002 Note (b) includes 
the collection and settlement of fares or credit functions.
    (c) Portable or mobile radiotelephones for civil use (e.g., for 
use with commercial civil cellular radio communication systems) that 
are not capable of transmitting encrypted data directly to another 
radiotelephone or equipment (other than Radio Access Network (RAN) 
equipment), nor of passing encrypted data through RAN equipment 
(e.g., Radio Network Controller (RNC) or Base Station Controller 
(BSC));
    (d) Cordless telephone equipment not capable of end-to-end 
encryption where the maximum effective range of unboosted cordless 
operation (i.e., a single, unrelayed hop between terminal and home 
base station) is less than 400 meters according to the 
manufacturer's specifications;
    (e) Portable or mobile radiotelephones and similar client 
wireless devices for civil use, that implement only published or 
commercial cryptographic standards (except for anti-piracy 
functions, which may be non-published) and also meet the provisions 
of paragraphs a.2. to a.5. of the Cryptography Note (Note 3 in 
Category 5--Part 2), that have been customized for a specific civil 
industry application with features that do not affect the 
cryptographic functionality of these original non-customized 
devices;
    (f) Wireless ``personal area network'' equipment that implement 
only published or commercial cryptographic standards and where the 
cryptographic capability is limited to a nominal operating range not 
exceeding 30 meters according to the manufacturer's specifications, 
or not exceeding 100 meters according to the manufacturer's 
specifications for equipment that cannot interconnect with more than 
seven devices;
    (g) Equipment meeting all of the following:
    1. All cryptographic capability specified by 5A002.a meets any 
of the following:
    a. It cannot be used; or
    b. It can only be made useable by means of ``cryptographic 
activation;'' and
    2. When necessary as determined by the appropriate authority in 
the exporter's country, details of the equipment are accessible and 
will be provided to the authority upon request, in order to 
ascertain compliance with conditions described above;

[[Page 64687]]

    N.B.1: See 5A002.a for equipment that has undergone 
``cryptographic activation.''
    N.B.2: See also 5A002.b, 5D002.d and 5E002.b.
    (h) Mobile telecommunications Radio Access Network (RAN) 
equipment designed for civil use, which also meet the provisions 2. 
to 5. of part a. of the Cryptography Note (Note 3 in Category 5--
Part 2), having an RF output power limited to 0.1W (20 dBm) or less, 
and supporting 16 or fewer concurrent users;
    (i) Routers, switches or relays, where the ``information 
security'' functionality is limited to the tasks of ``Operations, 
Administration or Maintenance'' (``OAM'') implementing only 
published or commercial cryptographic standards; or
    (j) General purpose computing equipment or servers, where the 
``information security'' functionality meets all of the following:
    1. Uses only published or commercial cryptographic standards; 
and
    2. Is any of the following:
    a. Integral to a CPU that meets the provisions of Note 3 in 
Category 5--Part 2;
    b. Integral to an operating system that is not specified by 
5D002; or
    c. Limited to ``OAM'' of the equipment.
    b. Designed or modified to enable, by means of ``cryptographic 
activation,'' an item to achieve or exceed the controlled 
performance levels for functionality specified by 5A002.a that would 
not otherwise be enabled;
    c. Designed or modified to use or perform ``quantum 
cryptography;''
    Technical Note: ``Quantum cryptography'' is also known as 
Quantum Key Distribution (QKD).
    d. Designed or modified to use cryptographic techniques to 
generate channelizing codes, scrambling codes or network 
identification codes, for systems using ultra-wideband modulation 
techniques and having any of the following:
    d.1. A bandwidth exceeding 500 MHz; or
    d.2. A ``fractional bandwidth'' of 20% or more;
    e. Designed or modified to use cryptographic techniques to 
generate the spreading code for ``spread spectrum'' systems, not 
controlled in 5A002.d., including the hopping code for ``frequency 
hopping'' systems.

0
79. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2, ECCN 5A992 is amended by removing and reserving 
Items paragraphs a and b and revising Items paragraph c in the List of 
Items Controlled section.
    The revisions read as follows:

5A992 Equipment not controlled by 5A002 (see List of Items 
Controlled).
* * * * *

List of Items Controlled

* * * * *
Items: * * *

    c. Commodities classified as mass market encryption commodities 
in accordance with Sec.  740.17(b) of the EAR.

0
80. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2 is amended by:
0
a. Adding after ECCN 5A992 the heading ``II. NON-CRYPTOGRAPHIC 
``INFORMATION SECURITY'' '' and adding ECCN 5A003; and
0
b. Adding after ECCN 5A003 the heading ``III. DEFEATING, WEAKENING, OR 
BYPASSING ``INFORMATION SECURITY'' '' and adding ECCN 5A004.
    The additions read as follows:

II. NON-CRYPTOGRAPHIC ``INFORMATION SECURITY''

5A003 ``Systems,'' ``equipment'' and ``components,'' for non-
cryptographic ``information security,'' as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 2
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

LVS: Yes: $500 for ``components.'' N/A for systems and equipment.
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:
    a. Communications cable systems designed or modified using 
mechanical, electrical or electronic means to detect surreptitious 
intrusion;

    Note: 5A003.a applies only to physical layer security.
    b. ``Specially designed'' or modified to reduce the compromising 
emanations of information-bearing signals beyond what is necessary 
for health, safety or electromagnetic interference standards.

II. DEFEATING, WEAKENING, OR BYPASSING ``INFORMATION SECURITY''

5A004 ``Systems,'' ``equipment'' and ``components'' for defeating, 
weakening or bypassing ``information security,'' as follows (see 
List of Items Controlled).

License Requirements

Reason for Control: NS, AT, EI

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
AT applies to entire entry................  AT Column 1
EI applies to entire entry................  Refer to Sec.   742.15 of
                                             the EAR
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

LVS: Yes: $500 for ``components.'' N/A for systems and equipment.
GBS: N/A
CIV: N/A
ENC: Yes for certain EI controlled commodities, see Sec.  740.17 of 
the EAR for eligibility.

List of Items Controlled

Related Controls: ECCN 5A004.a controls ``components'' providing the 
means or functions necessary for ``information security.'' All such 
``components'' are presumptively ``specially designed'' and 
controlled by 5A004.a.
Related Definitions: N/A
Items:
    a. Designed or modified to perform `cryptanalytic functions.'

    Note: 5A004.a includes systems or equipment, designed or 
modified to perform `cryptanalytic functions' by means of reverse 
engineering.

    Technical Note: `Cryptanalytic functions' are functions designed 
to defeat cryptographic mechanisms in order to derive confidential 
variables or sensitive data, including clear text, passwords or 
cryptographic keys.
    b. [Reserved]

0
81. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2, ECCN 5B002 is amended by revising the Items 
paragraph in the List of Items Controlled section to read as follows:

5B002 ``Information Security'' test, inspection and ``production'' 
equipment, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
    a. Equipment ``specially designed'' for the ``development'' or 
``production'' of equipment controlled by 5A002, 5A003, 5A004 or 
5B002.b;
    b. Measuring equipment ``specially designed'' to evaluate and 
validate the ``information security'' functions of equipment 
controlled by 5A002, 5A003 or 5A004, or of ``software'' controlled 
by 5D002.a or 5D002.c.

0
82. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2, ECCN 5D002 is amended by:
0
a. Adding, as well as revising, EI controls to the License Requirement 
table in the License Requirements section;

[[Page 64688]]

0
b. Removing the EI sentence, including the two Notes, under the License 
Requirements Note;
0
c. Revising the Related Controls paragraph in the List of Items 
Controlled Section; and
0
d. Revising Items paragraphs a. and c.1.
    The revisions and additions read as follows:

5D002 ``Software'' as follows (see List of Items Controlled)

License Requirements

Reason for Control: * * *

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
 
                                * * * * *
EI applies to ``software'' in 5D002.a, c.1  See Sec.   742.15 of the EAR
 and .d, for commodities or ``software''    Note: Encryption software is
 controlled for EI reasons in ECCNs 5A002,   controlled because of its
 5A004 or 5D002.                             functional capacity, and
                                             not because of any
                                             informational value of such
                                             software; such software is
                                             not accorded the same
                                             treatment under the EAR as
                                             other ``software'; and for
                                             export licensing purposes,
                                             encryption software is
                                             treated under the EAR in
                                             the same manner as a
                                             commodity included in ECCN
                                             5A002
 

    License Requirements Note: See Sec.  744.17 of the EAR for 
additional license requirements for microprocessors having a 
processing speed of 5 GFLOPS or more and an arithmetic logic unit 
with an access width of 32 bit or more, including those 
incorporating ``information security'' functionality, and associated 
``software'' and ``technology'' for the ``production'' or 
``development'' of such microprocessors.
* * * * *

List of Items Controlled

Related Controls: After classification or self-classification in 
accordance with Sec.  740.17(b) of the EAR, mass market encryption 
software that meet eligibility requirements are released from ``EI'' 
and ``NS'' controls. This software is designated as 5D992.c.
* * * * *
Items:

    a. ``Software'' ``specially designed'' or modified for the 
``development,'' ``production'' or ``use'' of equipment controlled 
by 5A002, 5A003 or 5A004, or of ``software'' controlled by 5D002.c;
* * * * *
    c. * * *
    c.1. ``Software'' having the characteristics, or performing or 
simulating the functions of the equipment, controlled by 5A002, 
5A003 or 5A004;
* * * * *
0
83. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2, ECCN 5D992 is amended by removing and reserving 
Items paragraphs a and b, and revising Items paragraph c in the Items 
paragraph of the List of Items Controlled section to read as follows:

5D992 ``Information Security'' ``software'' not controlled by 5D002 
as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    a. [Reserved]
    b. [Reserved]
    c. ``Software'' classified as mass market encryption software in 
accordance with Sec.  740.17(b) of the EAR.

0
84. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2, ECCN 5E002 is amended by:
0
a. Adding an EI control row to the License Requirements table in the 
License Requirements section;
0
b. Removing the EI sentence after the License Requirements table in the 
License Requirements section;
0
c. Revising Note 2 in the License Requirements Notes in the License 
Requirements section;
0
d. Revising the Related Controls paragraph of the List of Items 
Controlled section;
0
e. Revising Items paragraph a in the List of Items Controlled section.
    The revisions and additions read as follows:

5E002 ``Technology'' as follows (see List of Items Controlled).

License Requirements

Reason for Control: * * *

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
 
                                * * * * *
EI applies to ``technology'' in 5E002.a     Refer to Sec.   742.15 of
 for commodities or ``software''             the EAR
 controlled for EI reasons in ECCNs 5A002,
 5A004 or 5D002, and to ``technology'' in
 5E002.b.
 

    License Requirements Notes: * * * (2) When a person performs or 
provides technical assistance that incorporates, or otherwise draws 
upon, ``technology'' that was either obtained in the United States 
or is of US-origin, then a release of the ``technology'' takes 
place. Such technical assistance, when rendered with the intent to 
aid in the ``development'' or ``production'' of encryption 
commodities or software that would be controlled for ``EI'' reasons 
under ECCN 5A002, 5A004 or 5D002, may require authorization under 
the EAR even if the underlying encryption algorithm to be 
implemented is from the public domain or is not of U.S.-origin.
* * * * *

List of Items Controlled

Related Controls: See also 5E992. This entry does not control 
``technology'' ``required'' for the ``use'' of equipment excluded 
from control under the Related Controls paragraph or the Technical 
Notes in ECCN 5A002 or ``technology'' related to equipment excluded 
from control under ECCN 5A002.
* * * * *
Items:

    a. ``Technology'' according to the General Technology Note for 
the ``development,'' ``production'' or ``use'' of equipment 
controlled by 5A002, 5A003, 5A004 or 5B002, or of ``software'' 
controlled by 5D002.a or 5D002.c.
* * * * *
0
85. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 5--Part 2, ECCN 5E992 is amended by removing and reserving 
Items paragraph a.
0
86. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6A001 is amended by:
0
a. Adding double quotes around the term ``components'' in the Heading, 
introductory text of Items paragraph a, a.1, a.1.d, a.2 and the Note to 
6A001.a.2 in the List of Items Controlled section;
0
b. Revising Items paragraphs a.1.d.2 and a.1.e.2 in the List of Items 
Controlled section, as set forth below; and
0
c. Adding double quotes around the term ``accuracy'' in Items 
paragraphs a.2.d.1, b.1.b, and b.2 in the List of Items Controlled 
section.
    The additions and revisions read as follows:

6A001 Acoustic systems, equipment and ``components,'' as follows 
(see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    a. * * *
    a.1. * * *
    a.1.d. * * *
    a.1.d.2. Determined position error of less than 10 m rms (root 
mean square) when measured at a range of 1,000 m;
    Note: * * *
    a.1.e. * * *

[[Page 64689]]

    a.1.e.2. Determined position error of less than 15 m rms (root 
mean square) when measured at a range of 530 m; and
* * * * *
0
87. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6A002 is amended by adding paragraph d. to Note 2 to 
6A002.a.3 in the Items paragraph of the List of Items Controlled 
section, to read as follows:

6A002 Optical sensors and equipment, and ``components'' therefor, as 
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    a. * * *
    a.3. * * *
* * * * *
    Note 2: * * *
    d. Thermopile arrays having less than 5,130 elements;
* * * * *
0
88. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6A003 is amended by revising the Related Controls 
paragraph in the List of Items Controlled section to read as follows:

6A003 Cameras, systems or equipment, and ``components'' therefor, as 
follows (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: (1) See ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCN 6A203. (3) See ECCN 
0A919 for foreign-made military commodities that incorporate cameras 
described in 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c. (4) Section 
744.9 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.
* * * * *
0
89. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6A004 is amended by:
0
a. Adding a Note to Items paragraph a.3 in the List of Items Controlled 
section; and
0
b. Revising Items paragraphs d.2.a.3 and d.2.b, to read as follows:
    The addition and revisions read as follows:

6A004 Optical equipment and ``components,'' as follows (see List of 
Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    a. * * *
    a.3. * * *
    Note: 6A004.a.2 and 6A004.a.3 do not apply to mirrors 
``specially designed'' to direct solar radiation for terrestrial 
heliostat installations.
* * * * *
    d. * * *
    d.2. * * *
    d.2.a. * * *
    d.2.a.3. An angular ``accuracy'' of 10 [mu]rad (microradians) or 
less (better);
    d.2.b. Resonator alignment equipment having bandwidths equal to 
or more than 100 Hz and an ``accuracy'' of 10 [mu]rad or less 
(better);
* * * * *
0
90. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6A005 is amended by:
0
a. Revising the introductory text to Note 2 located after Items 
paragraph a.6.b.2 and the Technical Note located after Note 2 in the 
List of Items Controlled section;
0
b. Revising Items paragraphs b.6.a.2 and b.6.b.2 in the List of Items 
Controlled section;
0
c. Removing the Note to 6A005.c.1 in the Items paragraph of the List of 
Items Controlled section;
0
d. Adding a Note to 6A005.c.1 after Items paragraph c.1.b in the List 
of Items Controlled section;
0
e. Adding a Note to 6A005.d.1.d.1.d in the Items paragraph d.1.d.1.d of 
the List of Items Controlled section;
0
f. Adding a Note to 6A005.d.1.d.2.d after the Items paragraph d.1.d.2.d 
of the List of Items Controlled section;
0
g. Revising Items paragraph e.3 introductory text, e.3.c.1, e.3.c.2, 
f.3, and g.1 through g.3 of the List of Items Controlled section;
0
h. Revising the Technical Note at the end of the Items paragraph in the 
List of Items Controlled section.
    The revisions and additions read as follows:

6A005 ``Lasers,'' ``components'' and optical equipment, as follows 
(see List of Items Controlled), excluding items that are subject to 
the export licensing authority of the Nuclear Regulatory Commission 
(see 10 CFR part 110).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    a. * * *
    a.6. * * *
    a.6.b. * * *
    a.6.b.2. * * *
    Note 2: 6A005.a.6.b does not apply to multiple transverse mode, 
industrial ``lasers'' having any of the following:
* * * * *
    Technical Note: For the purpose of 6A005.a.6.b, Note 2 (a)(2), 
`brightness' is defined as the output power of the ``laser'' divided 
by the squared Beam Parameter Product (BPP), i.e., (output power)/
BPP\2\.
* * * * *
    b. * * *
    b.6. * * *
    b.6.a. * * *
    b.6.a.2. ``Average output power'' exceeding 30 W; or
* * * * *
    b.6.b. * * *
    b.6.b.2. ``Average output power'' exceeding 50 W; or
* * * * *
    c. * * *
    c.1. * * *
    c.1.b. * * *
    Note: 6A005.c.1 does not apply to dye ``lasers'' or other liquid 
``lasers,'' having a multimode output and a wavelength of 150 nm or 
more but not exceeding 600 nm and all of the following:
    1. Output energy less than 1.5 J per pulse or a ``peak power'' 
less than 20 W; and
    2. Average or CW output power less than 20 W.
* * * * *
    d. * * *
    d.1. * * *
    d.1.d. * * *
    d.1.d.1. * * *
    d.1.d.1.d. * * *
    Note: 6A005.d.1.d.1.d does not apply to epitaxially-fabricated 
monolithic devices.
* * * * *
    d.1.d.2.d. * * *
    Note: 6A005.d.1.d.2.d does not apply to epitaxially-fabricated 
monolithic devices.
* * * * *
    e. * * *
    e.3. Fiber ``laser'' ``components'' as follows:
* * * * *
    e.3.c. * * *
    e.3.c.1. Designed for spectral or coherent beam combination of 5 
or more fiber ``lasers;'' and
    e.3.c.2. CW ``Laser'' Induced Damage Threshold (LIDT) greater 
than or equal to 10 kW/cm\2\;
    f. * * *
    f.3. Optical equipment and ``components,'' ``specially 
designed'' for a phased-array ``SHPL'' system for coherent beam 
combination to an ``accuracy'' of [lambda]/10 at the designed 
wavelength, or 0.1 [mu]m, whichever is the smaller;
* * * * *
    g. * * *
    g.1. CW ``laser'' output power greater than or equal to 20 mW;
    g.2. ``Laser'' frequency stability equal to or better (less) 
than 10 MHz;
    g.3. ``Laser'' wavelengths equal to or exceeding 1,000 nm but 
not exceeding 2,000 nm;
* * * * *
    Technical Note: `Laser acoustic detection equipment' is 
sometimes referred to as a ``Laser'' Microphone or Particle Flow 
Detection Microphone.

0
91. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6A007 is amended by adding

[[Page 64690]]

double quotes around the term ``accuracy'' in Items paragraphs .a, b.1 
and b.2 in the List of Items Controlled section.
0
92. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6A008 is amended by:
0
a. Adding double quotes around the term ``accuracy'' in Items paragraph 
a.2 in the List of Items Controlled section;
0
b. Adding double quotes around the term ``lasers'' in Items paragraph 
j.3 in the List of Items Controlled section;
0
c. Adding double quotes around the term ``aircraft'' in Note 2 of the 
Technical Notes at the end of the Items paragraph in the List of Items 
Controlled section.
0
93. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6B004 is amended by revising Items paragraph a in the 
List of Items Controlled section to read as follows:

6B004 Optical equipment as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

    a. Equipment for measuring absolute reflectance to an 
``accuracy'' of equal to or better than 0.1% of the reflectance 
value;
* * * * *
0
94. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6B007 is amended by adding double quotes around the 
term ``accuracy'' in the Heading.
0
95. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6C005 is amended by adding double quotes around the 
term ``laser'' in Items paragraphs b.1 and b.2 in the List of Items 
Controlled section.
0
96. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 6, ECCN 6E003 is amended by revising the Items paragraph in 
the List of Items Controlled section to read as follows:

6E003 Other ``technology'' as follows (see List of Items 
Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:

ACOUSTICS

    a. [Reserved]

OPTICAL SENSORS

    b. [Reserved]

CAMERAS

    c. [Reserved]

OPTICS

    d. ``Technology'' as follows:
    d.1. Optical surface coating and treatment ``technology,'' 
``required'' to achieve an `optical thickness' uniformity of 99.5% 
or better for optical coatings 500 mm or more in diameter or major 
axis length and with a total loss (absorption and scatter) of less 
than 5 x 10-\3\;
    N.B.: See also 2E003.f.
    Technical Note: `Optical thickness' is the mathematical product 
of the index of refraction and the physical thickness of the 
coating.
    d.2. Optical fabrication ``technology'' using single point 
diamond turning techniques to produce surface finish ``accuracies'' 
of better than 10 nm rms on non-planar surfaces exceeding 0.5 m2;

LASERS

    e. ``Technology'' ``required'' for the ``development,'' 
``production'' or ``use'' of ``specially designed'' diagnostic 
instruments or targets in test facilities for ``SHPL'' testing or 
testing or evaluation of materials irradiated by ``SHPL'' beams;

MAGNETIC AND ELECTRIC FIELD SENSORS

    f. [Reserved]

GRAVIMETERS

    g. [Reserved]

RADAR

    h. [Reserved]

0
97. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 7, ECCN 7A003 is amended by:
0
a. Revising the Technical Note at the beginning of the Items paragraph 
of the List of Items Controlled section;
0
b. Adding double quotes around the term ``accuracies'' in the 
introductory paragraph in the Items paragraph .a, and the term 
``accuracy'' in the Items paragraphs b, c.1, and c.2 in the List of 
Items Controlled section;
0
c. Removing single quotes and adding double quotes around the term 
``Circular Error Probable'' in the Items paragraph a.1 in the List of 
Items Controlled section; and
0
d. Removing single quotes and adding double quotes around the term 
``CEP'' in Items paragraphs a.1, a.2, a.3, and .b in the List of Items 
Controlled section.
    The revision reads as follows:

7A003 `Inertial measurement equipment or systems', having any of the 
following (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    Technical note:
    `Positional aiding references' independently provide position, 
and include:
    a. Global Navigation Satellite Systems (GNSS);
    b. ``Data-Based Referenced Navigation'' (``DBRN'').
* * * * *

0
98. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 7, ECCN 7A004 is amended by adding double quotes around the 
term ``accuracy'' in the Items paragraph a in the List of Items 
Controlled section.
0
99. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 7, ECCN 7A008 is amended by adding double quotes around the 
term ``accuracy'' in the Heading.
0
100. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 7, ECCN 7B001 is amended by adding double quotes around the 
term ``aircraft'' in paragraph (1) of the Related Definitions paragraph 
in the List of Items Controlled section.
0
101. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 7, ECCN 7B002 is amended by adding double quotes around the 
term ``accuracies'' in Items paragraphs .a and .b of the List of Items 
Controlled section.
0
102. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 7, ECCN 7E004 is amended by:
0
a. Adding double quotes around the term ``accuracy'' in Items paragraph 
a.7 of the List of Items Controlled section;
0
b. Adding double quotes around the term ``aircraft'' in the Items 
paragraphs b.1, b.7.b.4, b.8.a and b.8.b of the List of Items 
Controlled section; and
0
c. Removing the word ``directional'' and adding in its place 
``direction'' in the Items paragraph c.2 of the List of Items 
Controlled section.
0
103. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 8, ECCN 8A001 is amended by:
0
a. Revising the Related Controls paragraph in the List of Items 
Controlled section, as set forth below;
0
b. Adding double quotes around the term ``accuracies'' in Items 
paragraph e.2 of the List of Items Controlled section.
    The revision reads as follows:

8A001 Submersible vehicles and surface vessels, as follows (see List 
of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: For the control status of equipment for 
submersible vehicles, see: Category 6 for sensors; Categories 7 and 
8 for navigation equipment; Category 8A for underwater equipment.
* * * * *
0
104. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 8, ECCN 8A002 is amended by:
0
a. Revising the GBS and CIV paragraphs in the List Based License 
Exception section;
0
b. Revising Items paragraph d of the List of Items Controlled section;
0
c. Removing and reserving Items paragraph e in the List of Items

[[Page 64691]]

Controlled section. The revisions read as follows:

8A002 Marine systems, equipment, ``parts'' and ``components,'' as 
follows (see List of Items Controlled).
* * * * *

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

* * * * *
GBS: Yes for manipulators for civil end uses (e.g., underwater oil, 
gas or mining operations) controlled by 8A002.i.2 and having 5 
degrees of freedom of movement; and 8A002.r.
CIV: Yes for manipulators for civil end uses (e.g., underwater oil, 
gas or mining operations) controlled by 8A002.i.2 and having 5 
degrees of freedom of movement; and 8A002.r.
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    d. Underwater vision systems ``specially designed'' or modified 
for remote operation with an underwater vehicle, employing 
techniques to minimize the effects of back scatter and including 
range-gated illuminators or ``laser'' systems;
* * * * *
0
105. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9, ECCN 9A001 is amended by:
0
a. Adding double quotes around the term ``aircraft'' in paragraph b. of 
Note 1 to Items 9A001.a in the List of Items Controlled section; and
0
b. Adding double quotes around the term ``aircraft'' in Items paragraph 
b introductory text in the List of Items Controlled section.
0
106. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9, ECCN 9A004 is amended by removing the reference to 
``5A002.a.5, 5A002.a.9'' and adding in its place ``5A002.c, 5A002.e'' 
in Items paragraph d in the List of Items Controlled section.
0
107. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9, ECCN 9A012 is amended by removing the Note at the end of 
the Items paragraph in the List of Items Controlled section.
0
108. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9, ECCN 9B001 is amended by revising Items paragraph b in the 
List of Items Controlled section to read as follows:

9B001 Equipment, tooling or fixtures, ``specially designed'' for 
manufacturing gas turbine engine blades, vanes or ``tip shrouds,'' 
as follows (See List of Items Controlled).
* * * * *
Items:
* * * * *
    b. Casting tooling, manufactured from refractory metals or 
ceramics, as follows:
    b.1. Cores;
    b.2. Shells (moulds);
    b.3. Combined core and shell (mould) units.
* * * * *
0
109. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 9, ECCN 9E003 is amended by:
0
a. Adding double quotes around the term ``aircraft'' in two places in 
Related Controls paragraph (2) in the List of Items Controlled section;
0
b. Adding double quotes around the term ``aircraft'' in the Note to 
9E003.h in the List of Items Controlled section;
0
c. Adding double quotes around the term ``aircraft'' in Items paragraph 
j and the Nota Bene that follows in the List of Items Controlled 
section.

Supplement No. 2 to Part 774 [Amended]

0
110. Supplement No. 2 to part 774 ``General Technology And Software 
Notes'' is amended by adding paragraph 3 to read as follows:

Supplement No. 2 To Part 774--General Technology and Software Notes

* * * * *
    3. General ``Information Security'' Note. ``Information 
security'' items or functions should be considered against the 
provisions in Category 5-Part 2, even if they are components, 
``software'' or functions of other items.
* * * * *

0
111. Supplement No. 6 to part 774 ``Sensitive List'' is amended by 
revising paragraphs (2)(i) ``2D001,'' (2)(ii) ``2E001,'' (2)(iii) 
``2E002,'' (4)(ii) ``4D001,'' (4)(iii) ``4E001,'' to read as follows:

Supplement No. 6 to Part 774--Sensitive List

* * * * *
(2) Category 2

    (i) 2D001--``Software,'' other than that controlled by 2D002, 
specially designed for the ``development'' or ``production'' of 
equipment as follows:
    (A) Machine tools for turning (ECCN 2B001.a) having two or more 
axes which can be coordinated simultaneously for ``contouring 
control'' having any of the following:
    (1) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    (2) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m;
    (B) Machine tools for milling (ECCN 2B001.b) having any of the 
following:
    (1) Three linear axes plus one rotary axis which can be 
coordinated simultaneously for ``contouring control'' having any of 
the following:
    (a) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    (b) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m;
    (2) Specified by 2B001.b.2.a, 2B001.b.2.b or 2B001.b.2.c and 
having a ``unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis; or
    (3) A ``unidirectional positioning repeatability'' for jig 
boring machines equal to or less (better) than 1.1 [micro]m along 
one or more linear axis;
    (C) Electrical discharge machines (EDM) controlled under 
2B001.d;
    (D) Deep-hole-drilling machines controlled under 2B001.f;
    (E) ``Numerically controlled'' or manual machine tools 
controlled under 2B003.
    (ii) 2E001--''Technology'' according to the General Technology 
Note for the ``development'' of ``software'' specified by 2D001 
described in this Supplement or for the ``development'' of equipment 
as follows:
    (A) Machine tools for turning (ECCN 2B001.a) having two or more 
axes which can be coordinated simultaneously for ``contouring 
control'' having any of the following:
    (1) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    (2) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m
    (B) Machine tools for milling (ECCN 2B001.b) having any of the 
following:
    (1) Three linear axes plus one rotary axis which can be 
coordinated simultaneously for ``contouring control'' having any of 
the following:
    (a) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    (b) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m;
    (2) Specified by 2B001.b.2.a, 2B001.b.2.b or 2B001.b.2.c and 
having a ``unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis; or
    (3) A ``unidirectional positioning repeatability'' for jig 
boring machines equal to or less (better) than 1.1 [micro]m along 
one or more linear axis;
    (C) Electrical discharge machines (EDM) controlled under 
2B001.d;
    (D) Deep-hole-drilling machines controlled under 2B001.f;
    (E) ``Numerically controlled'' or manual machine tools 
controlled under 2B003.
    (iii) 2E002--``Technology'' according to the General Technology 
Note for the ``production'' of equipment as follows:
    (A) Machine tools for turning (ECCN 2B001.a) having two or more 
axes which can be coordinated simultaneously for

[[Page 64692]]

``contouring control'' having any of the following:
    (1) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    (2) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m;
    (B) Machine tools for milling (ECCN 2B001.b) having any of the 
following:
    (1) Three linear axes plus one rotary axis which can be 
coordinated simultaneously for ``contouring control'' having any of 
the following:
    (a) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 0.9 [micro]m along one or more linear axis with a 
travel length less than 1.0 m; or
    (b) ``Unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis with a 
travel length equal to or greater than 1.0 m;
    (2) Specified by 2B001.b.2.a, 2B001.b.2.b or 2B001.b.2.c and 
having a ``unidirectional positioning repeatability'' equal to or 
less (better) than 1.1 [micro]m along one or more linear axis; or
    (3) A ``unidirectional positioning repeatability'' for jig 
boring machines equal to or less (better) than 1.1 [micro]m along 
one or more linear axis;
    (C) Electrical discharge machines (EDM) controlled under 
2B001.d;
    (D) Deep-hole-drilling machines controlled under 2B001.f;
    (E) ``Numerically controlled'' or manual machine tools 
controlled under 2B003.
* * * * *
(4) Category 4
* * * * *
    (ii) 4D001--``Software'' ``specially designed'' for the 
``development'' or ``production'' of equipment controlled under ECCN 
4A001.a.2 or for the ``development'' or ``production'' of
    ``digital computers'' having an `Adjusted Peak Performance' 
(`APP') exceeding 12.5 Weighted TeraFLOPS (WT).
    (iii) 4E001--``Technology'' according to the General Technology 
Note for the ``development'' or ``production'' of any of the 
following equipment or ``software'': equipment controlled under ECCN 
4A001.a.2, ``digital computers'' having an `Adjusted Peak 
Performance' (`APP') exceeding 12.5 Weighted TeraFLOPS (WT), or 
``software'' controlled under the specific provisions of 4D001 
described in this Supplement.
* * * * *

    Dated: September 1, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-21544 Filed 9-19-16; 8:45 am]
 BILLING CODE 3510-33-P


