[Federal Register Volume 83, Number 101 (Thursday, May 24, 2018)]
[Proposed Rules]
[Pages 24166-24195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10367]



[[Page 24165]]

Vol. 83

Thursday,

No. 101

May 24, 2018

Part II





Department of Commerce





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Bureau of Industry and Security





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15 CFR Parts 736, 740, 742, et al.





Control of Firearms, Guns, Ammunition and Related Articles the 
President Determines No Longer Warrant Control Under the United States 
Munitions List (USML); Proposed Rule

  Federal Register / Vol. 83 , No. 101 / Thursday, May 24, 2018 / 
Proposed Rules  

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 736, 740, 742, 743, 744, 746, 748, 758, 762, 772, and 
774

[Docket No. 111227796-5786-01]
RIN 0694-AF47


Control of Firearms, Guns, Ammunition and Related Articles the 
President Determines No Longer Warrant Control Under the United States 
Munitions List (USML)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Proposed rule.

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SUMMARY: This proposed rule describes how articles the President 
determines no longer warrant control under United States Munitions List 
(USML) Category I--Firearms, Close Assault Weapons and Combat Shotguns; 
Category II--Guns and Armament; and Category III--Ammunition/Ordnance 
would be controlled under the Commerce Control List (CCL). This 
proposed rule is being published simultaneously with a proposed rule by 
the Department of State that would revise Categories I, II, and III of 
the USML to describe more precisely the articles warranting continued 
control on that list.

DATES: Comments must be received by July 9, 2018.

ADDRESSES: You may submit comments by any of the following methods:
     Submit comments via Federal eRulemaking Portal: http://www.regulations.gov. You can find this proposed rule by searching on 
its regulations.gov docket number, which is BIS-2017-0004.
     By mail or delivery to Regulatory Policy Division, Bureau 
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th 
Street and Pennsylvania Avenue NW, Washington, DC 20230. Refer to RIN 
0694-AF47.

FOR FURTHER INFORMATION CONTACT: Steven Clagett, Office of 
Nonproliferation Controls and Treaty Compliance, Nuclear and Missile 
Technology Controls Division, tel. (202) 482-1641 or email 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    This proposed rule describes how articles the President determines 
no longer warrant control under United States Munitions List (USML) 
Category I--Firearms, Close Assault Weapons and Combat Shotguns; 
Category II--Guns and Armament; and Category III--Ammunition/Ordnance, 
would be controlled on the Commerce Control List (CCL) and by the 
Export Administration Regulations (EAR). This proposed rule is being 
published in conjunction with a proposed rule from the Department of 
State, Directorate of Defense Trade Controls, which would amend the 
list of articles controlled by USML Category I (Firearms, Close Assault 
Weapons and Combat Shotguns), Category II (Guns and Armament), and 
Category III (Ammunition/Ordnance) of the USML to describe more 
precisely items warranting continued control on that list.
    The changes described in this proposed rule and in the State 
Department's companion proposed rule on Categories I, II, and III of 
the USML are based on a review of those categories by the Department of 
Defense, which worked with the Departments of State and Commerce in 
preparing the amendments. The review was focused on identifying the 
types of articles that are now controlled on the USML that are either 
(i) inherently military and otherwise warrant control on the USML or 
(ii) if of a type common to non-military firearms applications, possess 
parameters or characteristics that provide a critical military or 
intelligence advantage to the United States, and are almost exclusively 
available from the United States. If an article satisfies one or both 
of those criteria, the article remains on the USML. If an article does 
not satisfy either criterion, it has been identified in the new Export 
Control Classification Numbers (ECCNs) included in this proposed rule. 
Thus, the scope of the items described in this proposed rule is 
essentially commercial items widely available in retail outlets and 
less sensitive military items.
    BIS has created ECCNs, referred to as the ``600 series,'' to 
control items that would be removed from the USML and controlled under 
the CCL, or items from the Wassenaar Arrangement on Export Controls for 
Conventional Arms and Dual Use Goods and Technologies Munitions List 
(Wassenaar Arrangement Munitions List or WAML) that are already 
controlled elsewhere on the CCL.
    These ECCNs are referred to as the ``600 series'' because the third 
character in each of the new ECCNs is ``6.'' The first two characters 
of the ``600 series'' ECCNs serve the same function as any other ECCN 
as described in Sec.  738.2 of the EAR. The first character is a digit 
in the range 0 through 9 that identifies the Category on the CCL in 
which the ECCN is located. The second character is a letter in the 
range A through E that identifies the product group within a CCL 
Category. With few exceptions, the final two characters identify the 
WAML category that covers items that are the same or similar to items 
in a particular ``600 series'' ECCN. Category II of the USML and 
category ML2 of the WAML cover large caliber guns and other military 
weapons such as: Howitzers, cannon, mortars, anti-tank weapons, 
projectile launchers, military flame throwers and recoilless rifles.
    In this proposed rule, items that are currently controlled in 
Category II of the USML would be controlled on the CCL under four new 
``600 series'' ECCNs. Placement of the items currently in USML Category 
II into the CCL's 600 series would be consistent with existing BIS 
practice of using 600 series ECCNs to control items of a military 
nature.
    Items currently controlled in Categories I and III of the USML 
would be controlled in new ECCNs in which the third character is a 
``5.'' These items are not appropriate for 600 series control because, 
for the most part, they have civil, recreational, law enforcement, or 
other non- military applications. As with 600 series ECCNs, the first 
character would represent the CCL category, the second character would 
represent the product group, and the final two characters would 
represent the WAML category that covers items that are the same or 
similar to items in the ECCN.
    This proposed rule does not deregulate the transferred items. BIS 
would require licenses to export, or reexport to any country a firearm 
or other weapon currently on the USML that would be added to the CCL by 
this proposed rule. BIS would also require licenses for the export or 
reexport of guns and armament that would be controlled under new ECCN 
0A602, such as guns and armaments manufactured between 1890 and 1919 to 
all destinations except Canada. As compared to decontrolling firearms 
and other items, in publishing this proposed rule, BIS, working with 
the Departments of Defense and State, is trying to reduce the 
procedural burdens and costs of export compliance on the U.S. firearms 
industry while allowing the U.S. Government to enforce export controls 
for firearms appropriately and to make better use of its export control 
resources. BIS encourages comments from the public on this aspect of 
the proposed rule.
    All references to the USML in this rule are to the list of defense 
articles that are controlled for purposes of export, temporary import, 
or brokering pursuant to the International Traffic in

[[Page 24167]]

Arms Regulations (ITAR), 22 CFR parts 120 through 130, and not to the 
list of defense articles on the United States Munitions Import List 
(USMIL) that are controlled by the Bureau of Alcohol, Tobacco, Firearms 
and Explosives (ATF) for purposes of permanent import under its 
regulations at 27 CFR part 447. Pursuant to section 38(a)(1) of the 
Arms Export Control Act (AECA), all defense articles controlled for 
export or import, or that are subject to brokering controls, are part 
of the USML under the AECA. All defense articles described in the USMIL 
or the USML are subject to the brokering controls administered by the 
U.S. Department of State in part 129 of the ITAR. The transfer of 
defense articles from the ITAR's USML to the EAR's CCL for purposes of 
export controls does not affect the list of defense articles controlled 
on the USMIL under the AECA, 22 U.S.C. 2778 et seq., for purposes of 
permanent import or brokering controls.
    BIS believes the control of these firearms under the EAR is 
justified because the firearms described in this proposed rule are 
either not inherently military or do not warrant the obligations that 
are imposed under the ITAR pertaining to such items. After review, the 
Defense Department, in conjunction with the Departments of State and 
Commerce, concluded that the firearms in this proposed rule also do not 
provide a critical military or intelligence advantage to the United 
States, are not the types of weapons that are almost exclusively 
available from the United States, and are manufactured from 
``technology'' that is widely available. Moreover, the firearms have 
commercial and other non-military characteristics that distinguish them 
from other articles controlled under the ITAR. There is a significant 
worldwide market for firearms in connection with civil and recreational 
activities such as hunting, marksmanship, competitive shooting, and 
other non-military activities. Because of the popularity of shooting 
sports in the United States, for example, many large chain retailers 
carry a wide inventory of the firearms described in the new ECCNs for 
sale to the general public. Firearms available through U.S. retail 
outlets include rim fire rifles, pistols, modern sporting rifles, 
shotguns, and large caliber bolt action rifles, as well as their 
``parts,'' ``components,'' ``accessories'' and ``attachments.''
    An additional justification for the change in the jurisdictional 
status of the items described in this rule is that the current ITAR 
controls burden U.S. industry without any proportionate benefits to 
United States national security or foreign policy objectives. Similar 
to the challenges faced by other industries, the firearms trade has 
been negatively affected by the incentives the ITAR creates for foreign 
manufacturers to avoid U.S.-origin content. Currently, under the ITAR, 
any part, component, accessory, or attachment for any of the firearms 
described in this proposed rule remains ITAR controlled, regardless of 
its significance, when incorporated into foreign-made items or 
reexported to any third country. Under the EAR, the de minimis 
provisions may, in certain cases, mean a foreign item that incorporates 
U.S.-origin content may not be subject to the EAR, provided the U.S.-
origin items meet the applicable de minimis level for the country of 
reexport. Similarly, a technical drawing of such part, component, 
accessory or attachment is ITAR controlled, as is the provision of a 
``defense service'' to a foreign person concerning those items, such as 
the application of protective coatings. Moreover, a U.S. person engaged 
in manufacturing or exporting these items or providing related defense 
services must register with the State Department under the ITAR. Thus, 
even if a U.S. company can manufacture or service these items at a 
lower cost in the United States as compared to the cost for a U.S. or 
foreign company to manufacture or service the items outside of the 
United States, the ITAR's restrictions may render the items 
unattractive or uncompetitive for foreign manufacturers. The EAR does 
not include a concept of ``defense services,'' and the ``technology'' 
related controls are more narrowly focused and apply in limited 
contexts as compared to the ITAR.
    The EAR also includes well-established and well understood criteria 
for excluding certain information from the scope of what is ``subject 
to the EAR.'' (See part 734 of the EAR.) Items that would move to the 
CCL would be subject to existing EAR concepts of jurisdiction and 
controls related to ``development'' and ``production,'' as well 
operation, installation, and maintenance ``technology.'' While 
controlling such ``technology,'' as well as other ``technology'' is 
important, the EAR includes criteria in part 734 that would exclude 
certain information and software from control. For example, if a gun 
manufacturer posts a firearm's operation and maintenance manual on the 
internet, making it publicly available to anyone interested in 
accessing it and without restrictions on further dissemination (i.e., 
unlimited distribution), the operation and maintenance information 
included in that published operation and maintenance manual would no 
longer be ``subject to the EAR.'' (See Sec. Sec.  734.3(b) and 
734.7(a).) Non-proprietary system descriptions, including for firearms 
and related items, are another example of information that would not be 
subject to the EAR. (See Sec.  734.3(b)(3)(v).)
    Pursuant to section 38(f) of the AECA, the President shall review 
the USML ``to determine what items, if any, no longer warrant export 
controls under'' the AECA. The President must report the results of the 
review to Congress and wait 30 days before removing any such items from 
the USML. The report must ``describe the nature of any controls to be 
imposed on that item under any other provision of law.'' 22 U.S.C. 
2778(f)(1).
    This Commerce proposed rule is being published simultaneously with 
a Department of State proposed rule. Collectively, the rules address 
defense articles currently controlled under Categories I (Firearms, 
Close Assault Weapons and Combat Shotguns), II (Guns and Armament), and 
III (Ammunition/Ordnance) of the USML. The Department of State proposed 
rule would revise Categories I (Firearms, Close Assault Weapons and 
Combat Shotguns), II (Guns and Armament), and III (Ammunition/Ordnance) 
of the USML so that they describe in positive terms the defense 
articles that should remain on the USML. The Department of Commerce 
rule would add to the CCL items that the President determines no longer 
warrant control under the USML.
    In addition, this rule would clarify the scope of some ECCNs 
currently on the CCL. This rule would also renumber these ECCNs to 
place certain firearms-related items currently on the CCL in closer 
proximity to the firearms-related items that would be removed from the 
USML and added to the CCL to make it easier to identify and classify 
such items.
    BIS is interested in comments in response to this proposed rule as 
to whether the public find this reorganization helpful. In some 
instances, the juxtapositions resulting from this reorganization 
highlight different license requirements and licensing policies for 
various firearms and related items. The public is invited to comment on 
the appropriateness of these license requirements and licensing 
policies. The public is also encouraged to comment on whether or not 
the proposed rule describes items that are not widely available in 
commercial outlets.

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Detailed Description of Changes Proposed by This Rule

Creation of New ECCNs

    This proposed rule would create 17 new ECCNs to control items 
proposed for removal from the USML. A discussion of each new ECCN and 
the controls that would apply to items under that ECCN follows below.

New ECCN 0A501: Firearms and Related Commodities

    New ECCN 0A501 would apply national security (NS Column 1), 
regional stability (RS Column 1), Firearms Convention (FC Column 1), 
United Nations (UN), and anti-terrorism (AT Column 1) reasons for 
control to the following firearms, the following enumerated parts and 
components and to ``specially designed'' ``parts,'' ``components,'' 
``accessories'' and ``attachments'' for those firearms and ``parts'' 
and ``components:''

--Non-automatic and semi-automatic firearms (other than shotguns) with 
a caliber of less than or equal to .50 inches (12.7 mm);
--Non-automatic and non-semi-automatic rifles, carbines, revolvers or 
pistols with a caliber greater than .50 inches (12.7 mm) but not 
greater than .72 inches (18.0 mm);
--Detachable magazines with a capacity of greater than 16 rounds but 
less than 50 rounds that are ``specially designed'' for the firearms 
listed above;
--Receivers (frames) and complete breech mechanisms, including 
castings, forgings, or stampings thereof, ``specially designed'' for 
the firearms listed above; and
--Barrels, cylinders, barrel extensions, mounting blocks (trunnions), 
bolts, bolt carriers, operating rods, gas pistons, trigger housings, 
triggers, hammers, sears, disconnectors, pistol grips that contain fire 
control ``parts'' or ``components,'' and buttstocks that contain fire 
control ``parts'' or ``components'' (e.g., triggers, hammers, sears, or 
disconnectors) if ``specially designed'' for the firearms listed above 
or for firearms listed in USML Category I (unless the part or component 
itself is listed in USML Category I(g) or (h) as specified in the 
Department of State proposed rule entitled ``Amendment to the 
International Traffic in Arms Regulations: Revision of U.S. Munitions 
List Categories I, II, and III,'' also published in this issue).

    ECCN 0A501.y would be subject only to anti-terrorism (AT Column 1) 
and United Nations (UN) reasons for control and would cover such items 
as scope mounts or accessory rails, iron sights, sling swivels, butt 
plates, recoil pads, bayonets, and stocks or grips that do not contain 
any fire control ``parts'' or ``components.''
    This proposed rule would add a technical note to ECCN 0A501 stating 
that ``parts'' and ``components'' include ``parts'' and ``components'' 
that are common to firearms described in ECCN 0A501 and to firearms 
``subject to the ITAR.''
    It also would add a second note to ECCN 0A501 to state that certain 
firearms and similar items are EAR99, i.e., subject to the EAR but not 
on the CCL. Those items are: Antique firearms (i.e., those manufactured 
before 1890) and reproductions thereof, muzzle loading black powder 
firearms except those designs based on centerfire weapons of a post 
1937 design, BB guns, pellet rifles, paint ball, and all other air 
rifles.
    In addition, for purposes of new ECCN 0A501 and the rest of the new 
ECCNs described below, items previously determined to be ``subject to 
the EAR'' under a commodity jurisdiction determination issued by the 
U.S. Department of State that were designated as EAR99 would generally 
not be classified in any of the new ECCNs that would be created with 
this proposed rule. This would be consistent with Supplement No. 1 to 
Part 736, General Order No. 5, paragraph (e)(3) (Prior commodity 
jurisdiction determination) and the paragraph (b)(1) release from 
``specially designed.'' As a conforming change, this proposed rule 
would revise paragraph (e)(3) of General Order No. 5 to add a reference 
to ``0x5zz'' (to account for new ECCNs 0A501, 0A502, 0A503, 0A504, 
0A505, 0B501, 0B505, 0D501, 0D505, 0E501, and 0E502 described below). 
The ``600 series'' and 9x515 (spacecraft and related items) are already 
included in paragraph (e)(3), and those references remain unchanged.

New ECCN 0A502: Shotguns and Certain Related Commodities

    New ECCN 0A502 would control both the shotguns currently on the 
USML that are to be added to the CCL (barrel length less than 18 
inches) and the shotguns and the enumerated ``parts'' and 
``components'' currently controlled in ECCN 0A984 (barrel length 18 
inches or greater). Shotguns currently controlled in ECCN 0A984 would 
retain their current reasons for control of Firearms Convention (FC), 
crime control (CC Column 1, 2 or 3 depending on barrel length and end 
user) and United Nations (UN) reasons. Shotguns with a barrel length 
less than 18 inches would be controlled under NS Column 1, CC Column 1, 
FC, UN and AT Column 1 plus regional stability (RS Column 1), 
consistent with their current control on the USML. The shotguns 
controlled in 0A502 currently controlled in ECCN 0A984 would not be 
controlled for national security reasons because they are not on the 
WAML.

New ECCN 0A503: Discharge Type Arms, and Certain Other Commodities

    This rule would replace existing ECCN 0A985 with a new ECCN 0A503. 
The rule would add ``non-lethal or less-lethal grenades and projectiles 
and `specially designed' `parts' and `components' of those 
projectiles'' to the description of controlled items in the header of 
ECCN 0A985 to make clear that such projectiles are classified in that 
ECCN 0A503 and not classified under ECCN 0A602 or on the USML. 
Renumbering this ECCN would cause entries controlling firearms and 
related items to be placed in close proximity to each other, which 
would make it easier for readers to identify items on the CCL.

New ECCN 0A504: Optical Sighting Devices and Certain Related 
Commodities

    New ECCN 0A504 would replace existing ECCN 0A987, which controls 
optical sighting devices for firearms. The reasons for control table, 
which currently states, inter alia, that the Firearms Convention (FC) 
reason for control applies to ``optical sights for firearms,'' would be 
revised to state specifically that the FC reason for control applies to 
all paragraphs in the ECCN except the one that controls laser pointing 
devices. In addition, BIS would add an RS control for certain 
riflescopes. These riflescopes would be identified in their own 
paragraph in the ECCN under 0A504.i. The riflescopes in this paragraph 
would be limited to those ``specially designed'' for use in firearms 
that are ``subject to the ITAR.'' An exclusion would be included in the 
criteria of this paragraph to ensure less sensitive riflescopes that 
would be moved from ECCN 0A987 to 0A504 on the effective date of a 
final rule, that currently are not RS controlled under the EAR, would 
not be controlled under this paragraph. This rule would also add a note 
to this paragraph (i) to specify that paragraph (a)(1) of the 
definition of ``specially designed'' is what would be used to determine 
whether a riflescope is ``specially designed'' for purposes of this 
paragraph.
    This change would make clear, consistent with BIS's existing 
interpretation, that such devices are not optical sights and are not 
subject to the

[[Page 24169]]

FC reason for control. The new number is intended to make identifying 
items on the CCL easier by grouping similar or related items closer to 
each other.

New ECCN 0A505: Ammunition and Certain Related Commodities

    New ECCN 0A505 would impose national security (NS Column 1), 
regional stability (RS Column 1), Firearms Convention (FC), United 
Nations (UN), and anti-terrorism (AT Column 1) controls on ammunition 
not enumerated on the USML, for firearms that would be classified under 
proposed ECCN 0A501, and for most ``parts'' and ``components'' of such 
ammunition. Such ammunition would be for small arms, in most cases, 
firearms of caliber not exceeding 0.50 inches, although some ammunition 
for firearms of caliber up to 0.72 inches would be included. This 
proposed rule would retain the CCL reasons for control currently found 
in ECCNs 0A984 and 0A986 for shotgun shells. Buckshot shotgun shells 
would be subject to the CC Column 1, FC Column 1 and UN reasons for 
control. Other shotgun shells would be subject to the FC, UN and AT 
(North Korea only) reasons for control. Only ``parts'' and 
``components'' would be eligible for License Exception LVS. Ammunition 
for larger caliber weapons such as howitzers, artillery, cannon, 
mortars, and recoilless rifles would remain in USML Category III. 
Ammunition that has little or no civil use or that is inherently 
military such as ammunition that is preassembled into links or belts, 
caseless ammunition, tracer ammunition, ammunition with a depleted 
uranium projectile or a projectile with a hardened tip or core and 
ammunition with an explosive projectile also would remain in USML 
Category III. Possession of the ammunition that would be added to the 
CCL by this rule does not provide a critical military advantage to the 
United States. Blank ammunition for firearms controlled by ECCN 0A501 
and not enumerated in Category III of the USML would be controlled for 
United Nations and anti-terrorism reasons only. Consolidating all 
ammunition on the CCL into one ECCN would simplify use of the CCL.
    Inclusion of this ammunition on the CCL is appropriate because such 
ammunition is available from a number of countries, some of which are 
not close allies of the United States or members of multilateral export 
control regimes. Possession of this ammunition does not confer a 
military advantage on the United States. This rule proposes adding 
three notes to clarify the scope of ``parts'' and ``components'' for 
ammunition classified under ECCN 0A505. Note 1 to 0A505.c would clarify 
the relationship between ECCNs 0A505 and 1A984 for shotgun shells, 
stating that shotgun shells that contain only chemical irritants would 
be controlled under 1A984 and not 0A505. Separately, Note 2 to 0A505.x 
would include an illustrative list of the controls on ``parts'' and 
``components'' in this entry, such as Berdan and boxer primers. Note 3 
to 0A505.x would clarify that the controls in ECCN 0A505 include 
``parts'' and ``components'' that are common to ammunition and ordnance 
described in this entry and to those enumerated in USML Category III.

New ECCN 0A602: Guns and Armament

    New ECCN 0A602 would impose national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN) and anti-
terrorism (AT Column 1) controls on guns and armament manufactured 
between 1890 and 1919 and for military flame throwers with an effective 
range less than 20 meters. It would impose those same reasons for 
control on parts and components for those commodities and for defense 
articles in USML Category II if such parts or components are not 
specified elsewhere on the CCL or USML. Note 2 to 0A602 confirms that 
black powder guns and armament manufactured in or prior to 1890 and 
replicas thereof designed for use with black powder propellants are 
designated EAR99. Inclusion of these guns and armament on the CCL is 
appropriate because they do not confer a significant military or 
intelligence advantage on the United States. The guns controlled in 
this ECCN are between 98 and 127 years old. The parts, components, 
accessories and attachments controlled in this ECCN include some that 
are for modern artillery. Modern artillery will remain on the USML, 
along with the most sensitive ``parts,'' ``components,'' 
``accessories'' and ``attachments'' for these USML items. This proposed 
rule adds a note to clarify that ``parts,'' ``components,'' 
``accessories'' and ``attachments'' specified in USML subcategory II(j) 
are not subject to the EAR. The USML Order of Review and CCL Order of 
Review already provide guidance for making such a jurisdictional and 
classification determination, but to highlight that these ``parts,'' 
``components,'' ``accessories'' and ``attachments'' are not classified 
under paragraph (x) of 0A602, this rule proposes adding a note.

New ECCN 0B501: Test, Inspection and Production Equipment for Firearms

    New ECCN 0B501 would cover ``Test, inspection and production 
`equipment' and related commodities for the `development' or 
`production' of commodities enumerated in ECCN 0A501 or USML Category 
I.'' This new ECCN would apply the national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN) and anti-
terrorism (AT Column 1) reasons for control to four specific types of 
machinery and to one class of items. The four specific types of 
machinery are: Small arms chambering machines, small arms deep hole 
drilling machines and drills therefor, small arms rifling machines, and 
small arms spill boring machines. The class of items covers dies, 
fixtures and other tooling ``specially designed'' for the 
``production'' of items in the State Department proposed rule for USML 
Category I or ECCN 0A501.
    The NS and RS reasons for control do not apply to equipment for the 
``development'' or ``production'' of commodities in ECCN 0A501.y 
because those reasons for control do not apply to the commodities in 
ECCN 0A501.y themselves.
    The first four specific items noted above currently are listed in 
ECCN 2B018, paragraphs .o, .p, .q, and .r and would be listed in 
paragraphs .a, .b, .c and .d of ECCN 0B501. In addition, the class of 
items in new 0B501 that is currently included within ECCN 2B018, 
paragraph .n (jigs and fixtures and other metal-working implements or 
``accessories'' of the kinds exclusively designed for use in the 
manufacture of firearms, ordnance, and other stores and appliances for 
land, sea or aerial warfare) would, if applicable to firearms 
controlled in 0A501, be subsumed in paragraph .e. Jigs, fixtures and 
metal working implements currently in 2B018 that are applicable to 
larger guns would be controlled in ECCN 0B602 and are discussed below.
    Moving these items from 2B018 to 0B501 would retain the national 
security (NS Column 1), anti-terrorism (AT Column 1) and United Nations 
(UN) reasons for control and would raise the regional stability (RS) 
reason for control from RS Column 2 to RS Column 1. This would cause no 
change in destination-based license requirements, but would allow 
consideration of whether the export or reexport could contribute to 
instability in any region, not just the region to which the item is 
exported or reexported in considering whether to approve a license.

[[Page 24170]]

New ECCN 0B505: Test, Inspection and Production Equipment for 
Ammunition

    New ECCN 0B505 would impose national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN), and anti-
terrorism (AT Column 1) controls on tooling, templates, jigs, mandrels, 
molds, dies, fixtures, alignment mechanisms, and test equipment, not 
enumerated in USML Category III, and ``specially designed'' ``parts'' 
and ``components'' therefor, that are ``specially designed'' for the 
``production'' of ammunition other than for the ammunition specified in 
0A505.b, .c or .d (certain shotgun shells with buckshot and without 
buckshot and certain blank ammunition). Equipment for manufacturing 
shotgun shells that do not contain buckshot would be controlled for the 
AT (North Korea only) and UN reasons for control, which are the reasons 
for control that currently apply to this equipment in ECCN 0B986. ECCN 
0B505 would not include equipment for the hand loading of cartridges 
and shotgun shells, so this rule specifies this in the heading.
    The equipment controlled in ECCN 0B505 is used to produce 
conventional ammunition and is similar to equipment that is in 
operation in a number of countries, some of which are not allies of the 
United States or members of multinational export control regimes. 
Possession of such equipment does not confer a significant military 
advantage on the United States, and thus its inclusion on the CCL is 
appropriate.

New ECCN 0B602: Test, Inspection and Production Equipment for Certain 
Guns and Armament

    New ECCN 0B602 would impose national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN), and anti-
terrorism (AT Column 1) controls on test, inspection and production 
equipment enumerated for commodities enumerated or otherwise described 
in ECCN 0A602.a or USML Category II. ECCN 0B602 would control eight 
specific types of equipment that currently are listed in paragraphs .e 
through .l of ECCN 2B018. Those eight specific types of equipment are: 
Gun barrel rifling and broaching machines and tools therefor; Gun 
barrel rifling machines; Gun barrel trepanning machines; Gun boring and 
turning machines; Gun honing machines of 6 feet (183 cm) stroke or 
more; Gun jump screw lathes; Gun rifling machines; and Gun 
straightening presses. ECCN 0B602 also would control one class of 
equipment that is included within ECCN 2B018 paragraph .n (jigs and 
fixtures and other metal-working implements or accessories of the kinds 
exclusively designed for use in the manufacture of items in ECCN 0A602 
or USML Category II). Moving these items from 2B018 to 0B501 would 
retain the national security (NS Column 1), anti-terrorism (AT Column 
1) and United Nations (UN) reasons for control and would raise the 
regional stability reason for control from RS Column 2 to RS Column 1. 
This would cause no change in destination-based license requirements, 
but would allow consideration of whether the export or reexport could 
contribute to instability in any region, not just the region to which 
the items is exported or reexported in considering whether to approve 
or reject a license application.
    Additionally, ECCN 0B602 would control any other tooling and 
equipment that is ``specially designed'' for the production of items in 
ECCN 0A602 or USML Category II along with test and evaluation equipment 
and test models, including diagnostic instrumentation and physical test 
models, ``specially designed'' for items in ECCN 0A602 or USML Category 
II.

New ECCN 0D501: Software for Firearms and Certain Related Commodities

    New ECCN 0D501 would apply national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN), and anti-
terrorism (AT Column 1) controls to ``software'' ``specially designed'' 
for the ``development,'' ``production,'' operation or maintenance of 
all commodities classified under ECCNs 0A501 or equipment under 0B501 
except those commodities classified under 0A501.y. ``Software'' for 
ECCN 0A501.y would be controlled only for United Nations and anti-
terrorism reasons to match the reason for control that applies to 
commodities classified under that paragraph.

New ECCN 0D505: Software for Ammunition and Certain Related Commodities

    New ECCN 0D505 would impose national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN), and anti-
terrorism (AT Column 1) controls on ``software'' ``specially designed'' 
for the ``development,'' ``production,'' operation or maintenance of 
commodities controlled by ECCNs 0A505.a and .x (rifle, pistol, carbine 
and revolver ammunition and ``specially designed'' parts and components 
therefor) or 0B505.a and .x. However, only United Nations and anti-
terrorism controls would apply to ``software'' for the blank ammunition 
in ECCN 0A505.d.

New ECCN 0D602: Software for Guns and Armament and Certain Related 
Items

    New ECCN 0D602 would impose national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN), and anti-
terrorism (AT Column 1) controls on ``software'' ``specially designed'' 
for the ``development,'' ``production,'' operation or maintenance of 
commodities controlled by ECCNs 0A602 or 0B602.

New ECCN 0E501: Technology for Firearms and Certain Related Items

    New ECCN 0E501 would apply the national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN) and anti-
terrorism (AT Column 1) reasons for control to ``technology'' 
``required'' for the ``development'' and ``production'' of firearms 
other than shotguns. This new ECCN also would apply the anti-terrorism 
and United Nations reasons for control to ``technology'' ``required'' 
for the operation, installation, maintenance, repair, or overhaul of 
such firearms. Controlling this ``technology'' under the EAR rather 
than the ITAR is appropriate because the ``technology'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, and overhaul of the firearms to be described in 0A501 is widely 
available throughout the world and its possession does not confer a 
significant military or intelligence advantage on the United States.

New ECCN 0E502: Technology for Shotguns

    New ECCN 0E502 would apply the crime control (CC Column 1) and 
United Nations (UN) reasons for control to ``technology'' required for 
the development or production of shotguns that would be controlled in 
new ECCN 0A502. Crime control and United Nations are the reasons for 
control currently imposed on ``technology'' required for the 
``development'' or ``production'' of shotguns in ECCN 0E984. The only 
difference between shotguns currently on the CCL and those that would 
be added by this proposed rule is barrel length. BIS believes that 
``technology'' related to shotguns does not vary significantly based on 
the barrel length of the shotgun. Attempts to apply different reasons 
for control or to control different types of technology based

[[Page 24171]]

solely on the barrel length of the shotgun would likely be ineffective.

New ECCN 0E504: Technology for Certain Optical Sighting Devices

    New ECCN 0E504 would replace existing ECCN 0E987, which controls 
``technology'' ``required'' for the ``development,'' or ``production'' 
of certain commodities controlled by 0A504. The new ECCN number is 
intended to make identifying items on the CCL easier by grouping 
similar or related items closer to each other. New ECCN 0E504 would 
also impose a United Nations (UN) control on the entire entry.

New ECCN 0E505: Technology for Ammunition and Related Items

    New ECCN 0E505 would impose national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN), and anti-
terrorism (AT Column 1) controls on ``technology'' ``required'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul or refurbishing of commodities controlled by 0A505.a 
and .x (rifle and pistol ammunition and ``parts'' and ``components); 
0B505 equipment for those commodities; and ``software'' for that 
equipment and those commodities controlled by 0D505. ``Technology'' for 
the ``development'' or ``production'' of buckshot shotgun shells would 
be controlled for crime control (CC Column 1) and UN reasons. United 
Nations and anti-terrorism (AT Column 1) controls would apply to 
``technology'' for the blank ammunition (controlled in 0A505.d) for 
firearms controlled in ECCN 0A501 and to ``technology'' for that 
ammunition and ``technology'' for ``software'' for that ammunition. 
Inclusion of this ``technology'' on the CCL is appropriate because, 
like the ammunition and production equipment addressed by this rule, it 
is widely available, including in countries that are not allies of the 
United States or members of multilateral export control regimes and 
thus confers no military advantage on the United States.

New ECCN 0E602: Technology for Guns and Armament, Including Technology 
for Test, Inspection and Production Equipment and Software for Guns and 
Armament

    New ECCN 0E602 would impose national security (NS Column 1), 
regional stability (RS Column 1), United Nations (UN), and anti-
terrorism (AT Column 1) controls on ``technology'' ``required'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul or refurbishing of commodities controlled by ECCNs 
0A602 or 0B602, or ``software'' controlled by 0D602.

Revisions to Seven ECCNs

    To conform to new Federal Register Drafting Handbook requirements, 
the amendatory instructions in this proposed rule would set forth the 
entire text of the seven ECCNs to be revised. To help the public 
understand what specific parts of the ECCNs would be different, the 
narrative below describes the amendments in detail.

Revision to ECCN 0A018

    With the proposed removal of ECCN 0A984 and the addition of 0A502 
described above, this proposed rule would make the conforming change of 
removing and reserving 0A018.c since all the items classified in 
0A018.c would be classified under other entries on the CCL. This change 
includes the removal of the note to 0A018.c.

Revision to ECCN 0E982

    ECCN 0E982 controls ``technology'' exclusively for the 
``development'' or ``production'' of equipment controlled by ECCN 0A982 
or 0A985. This rule would replace ``0A985,'' which applies to discharge 
type arms and some other crime control equipment, with 0A503 to conform 
to the replacement of ECCN 0A985 with new ECCN 0A503 proposed elsewhere 
in this rule.

Revision to ECCN 1A984

    To clarify an existing agency practice of controlling shotguns 
shells that contain only chemical irritants under 1A984, this proposed 
rule would revise the heading of 1A984. As described above, the same 
type of clarification would be made to ECCN 0A505.c under new Note 1 to 
paragraph (c). BIS considers these to be conforming changes to the 
removal of ECCN 0A986 and the addition of ECCN 0A505.c in this proposed 
rule.

Revisions to ECCN 2B004

    As a conforming change, this rule would replace the reference to 
ECCN 2B018 in the related controls paragraph of ECCN 2B004 with 
references to ECCNs 0B501, 0B602 and 0B606. This rule would make no 
substantive changes to ECCN 2B004.

Revisions to ECCN 2B018

    This proposed rule would remove and reserve paragraphs .e, .f, .g, 
.h, .i, .j, and .l from ECCN 2B018 because the commodities listed in 
those paragraphs would be listed in ECCN 0B602. It would remove 
paragraph .n, because the commodities listed in that paragraph would be 
controlled under either ECCNs 0B501 or 0B602 or under existing ECCN 
0B606 in this proposed rule. It would remove paragraphs .a through .d, 
.m and .s, because the commodities listed in those paragraphs would be 
controlled in ECCN 0B606. It would remove paragraphs .o, .p, .q, and .r 
because the commodities listed in those paragraphs would be controlled 
in ECCN 0B501. The commodities described in the MT control in ECCN 
2B018 currently listed as MT are controlled elsewhere in the EAR, so no 
additional changes are needed to add these commodities to other ECCNs.

Revisions to ECCN 2D018

    Currently ECCN 2D018 controls software for the ``development,'' 
``production'' or ``use'' of equipment controlled by ECCN 2B018. As a 
conforming change, this rule would replace the control text of ECCN 
2D018 with a statement referring readers to ECCNs 0D501, 0D602 and 
0D606.

Revisions to ECCN 7A611

    As a conforming change, this rule would remove the reference to 
0A987 in the Related Controls paragraph (2) and add in its place 0A504.

Removal of Nine ECCNs

Removal of ECCN 0A918

    ECCN 0A918 controls ``bayonets'' for regional stability, anti-
terrorism, and United Nations reasons. This proposed rule would remove 
bayonets from ECCN 0A918 and add them to the .y paragraph of proposed 
ECCN 0A501, where they would be subject to United Nations and anti-
terrorism (AT column 1) reasons for control. Bayonets and the 
``technology'' to produce them are available in many countries. 
Possession of bayonets does not confer a significant military advantage 
on the United States and attempting to restrict their availability by 
requiring a license for export to most destinations is unlikely to be 
effective. Therefore, for these reasons, this proposed rule does not 
retain a regional stability (RS column 2) control on bayonets because 
it is no longer warranted.

Removal of ECCN 0A984

    This proposed rule would remove ECCN 0A984 because all of the 
commodities that it currently controls would be controlled by either 
proposed ECCN 0A502 or 0A505. As conforming changes, references to ECCN 
0A984 would be replaced with references to ECCN 0A502 or 0A505 or both, 
as appropriate in Sec. Sec.  742.7(a)(1), (2) and (3); 742.17(f) and 
748.12(a)(1) and in ECCN 0A018.

[[Page 24172]]

Removal of ECCN 0A985

    This proposed rule would remove ECCN 0A985 because all of the 
commodities that it currently controls would be controlled by proposed 
ECCN 0A503. As conforming changes, references to ECCN 0A985 would be 
replaced with references to ECCN 0A503 in Sec. Sec.  740.20(b)(2); 
742.7(a)(4) and (c); 746.7(a) and ECCN 0E982.

Removal of ECCN 0A986

    This proposed rule would remove ECCN 0A986 because all of the 
commodities that it currently controls would be controlled by proposed 
0A505.c, including less than lethal rounds. As conforming changes, 
references to ECCN 0A986 would be replaced with references to ECCN 
0A505, as appropriate in Sec. Sec.  742.17(f); 742.19(a)(1); 
746.3(b)(2) and 748.12(a)(1).

Removal of ECCN 0A987

    This proposed rule would remove ECCN 0A987 because proposed ECCN 
0A504 would control all commodities currently controlled by ECCN 0A987. 
As conforming changes, references to ECCN 0A987 would be replaced with 
references to ECCN 0A504, as appropriate in Sec. Sec.  
740.16(b)(2)(iv); 742.7(a)(1); 742.17(f); 744.9(a)(1) and (b); and 
748.12(a)(1); and in ECCN 7A611.

Removal of ECCN 0B986

    This proposed rule would remove ECCN 0B986 because all of the 
commodities that it controls would be controlled in proposed ECCN 
0B505.c. As conforming changes, references to ECCN 0B986 would be 
replaced with references to 0B505.c in Sec. Sec.  742.19(a) and 772.1, 
definition of specially designed Note 1.

Removal of ECCN 0E918

    This proposed rule would remove ECCN 0E918, which controls 
``technology'' for the ``development,'' ``production,'' or ``use'' of 
bayonets for regional stability, United Nations, and anti-terrorism 
reasons. Because ``technology'' for the ``development,'' 
``production,'' or ``use'' of bayonets is widely known, any attempt to 
limit its dissemination through export license requirements is unlikely 
to be effective.

Removal of ECCN 0E984

    This proposed rule would remove ECCN 0E984, which controls 
``technology'' for the development of shotguns and buckshot shotgun 
shells, because such ``technology'' would be controlled under proposed 
ECCN 0E502 (shotguns) or 0E505 (buckshot shotgun shells). As a 
conforming change, this proposed rule would replace a reference to ECCN 
0E984 in Sec.  742.7(a) with references to ECCNs 0E502 and 0E505.

Removal of ECCN 0E987

    This proposed rule would remove ECCN 0E987 because proposed ECCN 
0E504 would control all ``technology'' currently controlled by ECCN 
0E987. As conforming change, references to ECCN 0E987 would be replaced 
with references to ECCN 0E504, as appropriate in Sec. Sec.  
740.20(b)(2)(ii) and 742.7(a)(1).

Conforming Change to General Order No. 5

    This proposed rule would amend General Order No. 5, paragraph 
(e)(3) (Prior commodity jurisdiction determinations), in Supplement No. 
1 to part 736, to add a reference in two places to the new 0x5zz ECCNs 
that would be created by this rule. This change to paragraph (e)(3) is 
a conforming change and is needed because paragraph (e)(3) now only 
references the ``600 series'' and 9x515 ECCNs. 0x5zz ECCNs would 
include new ECCN 0A501, 0A502, 0A505, 0B501, 0B505, 0D501, 0D505, 
0E501, 0E502, 0E505. Paragraph (e)(2) is important because, for 
example, it ensures that items previously determined to be ``subject to 
the EAR'' and designated EAR99, would not be classified in a new ECCN 
being created to control items moved from the USML to the CCL, unless 
specifically enumerated by BIS in an amendment to the CCL. For example, 
most swivels and scope mounts for firearms have previously been 
determined through the CJ and classification process to not be 
``subject to the ITAR'' and designated as EAR99. The classification of 
such ``parts'' would not be changed, provided the ``part'' was not 
subsequently changed, which would require a separate jurisdiction and 
classification analysis.

Revisions to Regional Stability Licensing Policy for Firearms and 
Ammunition That Would Be Added to the EAR

    This proposed rule would apply the regional stability licensing 
policy set forth in Sec.  742.6(b)(1)(i) of the EAR to the items 
controlled for regional stability reasons in ECCNs 0A501, 0A505, 0B501, 
0B505, 0A504, 0D501, 0D505, 0E501, 0E504 and 0E505. That policy, which 
also applies to ``600 series'' and 9x515 items is case-by-case review 
``to determine whether the transaction is contrary to the national 
security or foreign policy interests of the United States, including 
the foreign policy interest of promoting the observance of human rights 
throughout the world.'' This proposed rule would also revise the 
regional stability licensing policy set forth in the last sentence of 
paragraph (b)(1)(i) that is specific to the People's Republic of China 
for 9x515 items. This proposed rule would add ECCNs 0A501, 0A504, 
0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 to this 
sentence to specify that these firearms and related items will be 
subject to a policy of denial when destined to the People's Republic of 
China or a country listed in Country Group E:1. Lastly, this proposed 
rule would add a sentence to the end of paragraph (b)(1)(i) to make it 
explicit that applications for exports and reexports of ECCN 0A501, 
0A504, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 items 
would be subject to a policy of denial when there is reason to believe 
the transaction involves certain parties of concern. In addition, 
transactions involving criminal organizations, rebel groups, street 
gangs, or other similar groups or individuals, that may be disruptive 
to regional stability, including within individual countries would be 
subject to a policy of denial.

Availability of License Exceptions

    Many of the items in the new ``600 series'' ECCNs generally would 
be eligible for the same license exceptions and subject to the same 
restrictions on use of license exceptions as other ``600 series'' 
ECCNs. BIS intends that those restrictions be no more restrictive than 
the ITAR license exemption restrictions that currently apply to those 
items.
    For the ECCNs currently on the CCL that would be renumbered and 
placed in closer proximity to the firearms-related items that would be 
removed from the USML and added to the CCL, these existing firearms-
related items would continue to be eligible for the same EAR license 
exceptions, as they were prior to publication of this rule, unless 
otherwise restricted under Sec.  740.2, if the requirements of the 
license exceptions are met.

License Exception: Shipments of Limited Value (LVS)

    Under this proposed rule, complete firearms controlled under ECCN 
0A501 would not be eligible for License Exception LVS, 15 CFR 740.3. 
Firearms ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' controlled under ECCN 0A501, other than receivers 
(frames), and complete breech mechanisms, including castings, forgings 
or stampings thereof, would be eligible for License Exception LVS, with

[[Page 24173]]

a limit of $500 on net value per shipment. In addition, receivers 
(frames), and complete breech mechanisms, including castings, forgings 
or stampings thereof, would be eligible for License Exception LVS if 
the ultimate destination is Canada. These limits would be stated in the 
License Exceptions paragraph of ECCN 0A501, and no revisions to the 
text of the license exception itself would be needed to implement them. 
BIS believes that this provision is generally consistent with the 
license exemption for limited value shipments of firearms in the ITAR 
(22 CFR 123.17(a)). This LVS proposal would be less restrictive than 
the current ITAR provision in two respects. First, the value limit per 
shipment would be $500 compared to $100 in the ITAR. Second, the LVS 
proposal would allow exports of receivers and complete breech 
mechanisms to Canada whereas Sec.  123.17(a) does not. However, the 
$500 LVS limit is based on the actual selling price or fair market 
value, whereas the ITAR $100 limit is based on ``wholesale'' value. BIS 
believes that the LVS value standard is more precise and easier to 
apply than the ITAR standard and is more in keeping with current 
prices. In addition, with respect to Canada, an LVS limit of $500 per 
shipment is needed to comply with the Section 517 of the Commerce, 
Justice, Science, and Related Agencies Appropriations Act of 2015, 
which prohibits expending any appropriated funds to require licenses 
for the export of certain non-automatic firearms parts, components, 
accessories and attachments to Canada when valued at under $500.
    Guns and armament and related items controlled under ECCN 0A602 
would be eligible for License Exception LVS, with a limit of $500 net 
value per shipment.
    Ammunition controlled under ECCN 0A505 would not be eligible for 
License Exception LVS; however, ammunition parts and components would 
be eligible with a limit of $100 net value per shipment.
    Test, inspection and production equipment controlled under ECCNs 
0B501, 0B602 and 0B505 for firearms, guns and armament and ammunition/
ordnance would be eligible for License Exception LVS with a limit of 
$3,000 net value per shipment, which is consistent with LVS eligibility 
for most 600 series ECCNs.

License Exception: Temporary Imports, Exports, Reexports, and Transfers 
(In-Country) (TMP)

    This proposed rule would amend the regulations at Sec.  740.9 to 
state that License Exception TMP would not be available to export or 
reexport the items that are the subject of this rule to destinations in 
Country Group D:5 (See Supplement No. 1 to part 740). License Exception 
TMP would also not be available to export or reexport some firearms and 
ammunition shipped from or manufactured in the Russia (Russian 
Federation), Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, 
Ukraine, or Uzbekistan. In addition, this proposed rule would prohibit 
the use of License Exception TMP to export or reexport any item 
controlled by proposed ECCN 0A501 and any shotgun with a barrel length 
less than 18 inches controlled under ECCN 0A502 that was shipped from 
or manufactured in Country Group D:5. It also would prohibit use of 
License Exception TMP to export or reexport any item controlled by 
proposed ECCN 0A501 that is shipped from or manufactured in Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, except for any firearm model controlled by proposed 0A501 
that is also excluded under Annex A in Supplement No. 4 to part 740 
(the prohibition would not apply to such firearms), and any shotgun 
with a barrel length less than 18 inches controlled under 0A502 that 
was shipped from or manufactured in Russia, Georgia, Kazakhstan, 
Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan. These 
prohibitions would apply to temporary exports of firearms from the 
United States, and the export of firearms temporarily in the United 
States.
    This proposed rule would limit temporary exports of firearms 
controlled under ECCN 0A501 and any shotgun with a barrel length less 
than 18 inches controlled under ECCN 0A502 pursuant to License 
Exception TMP to exhibition and demonstration (Sec.  740.9(a)(5) of the 
EAR) and inspection, test, calibration, and repair (Sec.  740.9(a)(6) 
of the EAR). Consistent with the ITAR requirements previously 
applicable to temporary exports of the firearms covered by this rule 
(see 22 CFR 123.17(c), 123.22), exporters would continue to be required 
to file Electronic Export Information (EEI) to the Automated Export 
System (AES) for transactions involving such firearms that are 
authorized pursuant to License Exception TMP (See Sec.  758.1(a)(10) of 
the EAR).
    The proposed rule would also authorize the use of License Exception 
TMP for the export of ECCN 0A501 firearms temporarily in the United 
States for a period of not more than one year subject to the 
requirement that the firearms not be imported from or ultimately 
destined for certain proscribed or restricted countries. Certain 
information as described below would also be collected by CBP on behalf 
of BIS and done under existing or new Commerce paperwork collections. 
The proposed rule would also make eligibility to export under License 
Exception TMP for ECCN 0A501.a or .b or shotguns with a barrel length 
less than 18 inches controlled in ECCN 0A502 subject to the following 
conditions:
    Upon the entry portion of a temporary import, the temporary 
importer would be required to provide the required statement to U.S. 
Customs and Border Protection (CBP), as proposed in paragraph 
(b)(5)(iv)(A).
    The temporary importer would be required to include on the invoice 
or other appropriate import-related documentation (or electronic 
equivalents) provided to CBP a complete list and description of the 
0A501 firearms being imported, including their serial numbers, model, 
make, caliber, quantity, and U.S. dollar value, as proposed in 
paragraph (b)(5)(iv)(B).
    If the firearms are temporarily imported for a trade show, 
exhibition, demonstration, or testing, the temporary importer must 
provide to CBP the relevant invitation or registration documentation 
for the event and an accompanying letter that details the arrangements 
to maintain effective control of the firearms while they are in the 
United States, as proposed in paragraph (b)(5)(iv)(C).
    At the time of export, the temporary importer or its agent as 
proposed in paragraph (b)(5)(v) would be required to provide the 
temporary import documentation (i.e., the invoice used at the time of 
entry for the temporary importation or other appropriate temporary 
import-related documentation (or electronic equivalents)) related to 
paragraph (b)(5)(iv)(B) to CBP. This information would be used by CBP 
to confirm that such firearms were in fact temporarily imported under 
the EAR for subsequent export under License Exception TMP.
    The proposed rule would include a note to License Exception TMP to 
direct temporary importers and exporters to contact CBP at the port of 
import or export for the proper procedures to provide any data or 
documentation required by BIS.

[[Page 24174]]

License Exception: Governments, International Organizations, 
International Inspections Under the Chemical Weapons Convention, and 
the International Space Station (GOV)

    This proposed rule would revise the regulations at Sec.  740.11 to 
limit the applicability of License Exception GOV for firearms, 
``parts'' and ``components'' controlled by ECCN 0A501 and ammunition 
controlled by 0A505 to exports, reexports and transfers for official 
use by U.S. government agencies and official and personal use by U.S. 
government employees (and the immediate families and household 
employees of those government employees) (Sec.  740.11(b)(2)(i) and 
(ii) of the EAR). This proposed authorization under License Exception 
GOV would treat 0A501 firearms in the same manner that other items that 
are subject to the EAR may be exported to U.S. government employees 
under License Exception GOV. It would not impose certain restrictions 
that are imposed by the current ITAR license exemption. The ITAR 
exemption authorizes exports of only non-automatic firearms and 
``parts'' and ``components.'' License Exception GOV would authorize 
non-automatic and semi-automatic firearms and ``parts'' and 
``components.''
    The ITAR exemption (22 CFR 123.18) authorizes shipments consigned 
to and for the use of servicemen's clubs, and for service members or 
civilian employees if the firearms are for personal use and the 
shipment is accompanied by a written authorization from the commanding 
officer concerned. The ITAR exemption also authorizes exports to other 
U.S. government employees for personal use if the chief of the U.S. 
diplomatic mission in the country of destination has approved in 
writing to the Department of State the specific types and qualities of 
firearms into that country. The exporter must present a copy of the 
written statement to the CBP Port Director. License Exception GOV would 
impose none of the foregoing limitations. BIS believes that the 
limitations are unnecessary. The EAR control exports for national 
security and foreign policy reasons. BIS believes that the restrictions 
imposed in the ITAR exemption primarily pertain to concerns over the 
security of U.S. government personnel and property located outside the 
United States. Those concerns may be addressed more appropriately 
through policies and procedures implemented by the U.S. government 
agencies whose personnel and properties are located outside the United 
States. Export license requirements are not needed to implement such 
policies.
    All other items that are the subject of this rule would be subject 
to the limits on use of License Exception GOV that apply to 600 series 
items generally, i.e., Sec.  740.11(b)--to, for or on behalf of the 
U.S. Government (including contractors, government employees, their 
families and household employees) or Sec.  740.11(c) to a government in 
Country Group A:1 cooperating governments or an agency of NATO. 
However, this rule would add some additional restrictions for E:1 and 
E:2 countries. This proposed rule would exclude the use of License 
Exception GOV for any item listed in a 0x5zz ECCN for E:1 countries, 
unless authorized under paragraph (b)(2)(i) or (ii) when the items are 
solely for U.S. government official use. In addition, to better ensure 
compliance with section 6(j) of the EAA and address concerns with 
certain end users and uses in Country Group E:1 and E:2 countries, this 
proposed rule would add a new Note 1 to paragraph (b)(2), which would 
restrict the use of License Exception GOV for E:1 and E:2 countries for 
multilaterally controlled items and anti-terrorism (AT) controlled 
items when destined to certain end users or end uses of concern.

License Exception: Baggage (BAG)

    This proposed rule would revise License Exception BAG, Sec.  
740.14, to allow United States citizens and permanent resident aliens 
leaving the United States temporarily to take up to three firearms 
controlled by proposed ECCN 0A501 and up to 1,000 rounds of ammunition 
for such firearms controlled under ECCN 0A505.a for personal use while 
abroad. This proposed change to License Exception BAG would be made to 
be consistent with 22 CFR 123.17(c), which authorizes U.S. persons to 
take up to three non-automatic firearms and up to 1,000 cartridges 
therefor abroad for personal use. This proposed amendment to License 
Exception BAG would apply to both non-automatic and semi-automatic 
firearms. Consistent with the ITAR requirements previously applicable 
to temporary exports of the firearms and associated ammunition covered 
by this rule, BIS is proposing to modify Sec.  758.1 of the EAR to make 
clear that exporters would continue to be required to file Electronic 
Export Enforcement (EEI) to the Automated Export System (AES) for 
transactions involving such firearms and associated ammunition that are 
otherwise authorized pursuant to License Exception BAG. BIS is aware 
that U.S. Customs and Border Protection (CBP) has temporarily suspended 
the requirement to file EEI to the AES for personally-owned firearms 
and ammunition that are ``subject to the ITAR'' being exported under 22 
CFR 123.17(c), due to operational challenges related to implementation. 
See the following CBP website page for additional information: https://
help.cbp.gov/app/answers/detail/a_id/323/~/traveling-outside-of-the-
u.s.---temporarily-taking-a-firearm%2C-rifle%2C-gun%2C. BIS is 
proposing in this rule to ensure consistency with the current ITAR 
filing requirements and any measures that are being used at this time 
to track such temporary exports of personally-owned firearms and 
ammunition. Whether and how BIS includes this requirement in a final 
rule would be based on whether CBP is able to update its processes, and 
other agencies as needed, to allow for individuals to easily file EEI 
in AES by the time a final rule is published. If CBP is not able to do 
so, then the final rule may direct exporters to continue to use CBP's 
existing process, which is the use of the CBP Certification of 
Registration Form 4457, until a workable solution is developed or CBP 
suggests an alternative simplified solution for gathering such 
information for temporary exports of personally-owned firearms and 
ammunition. BIS will also take into consideration any public comments 
submitted on this aspect of the proposed rule regarding imposing an EEI 
filing requirement in AES, as well as comments on the current practice 
of using the CBP Form 4457, as well as any other suggestions on 
alternative approaches for tracking such information.
    Though BIS does not require prior authorization to use License 
Exception BAG, in order to facilitate the physical movement and 
subsequent importation of firearms authorized under this license 
exception, this information would need to be collected by CBP by 
requiring EEI filing in AES.
    Travelers leaving the United States temporarily would be required 
to declare the 0A501 and 0A505 items to a CBP officer prior to 
departure from the United States and present the firearms, ``parts,'' 
``components,'' ``accessories,'' ``attachments,'' and ammunition they 
are exporting to the CBP officer for inspection, confirming that the 
authority for the export is License Exception BAG, that the exporter is 
compliant with its terms. Should exporters desire to contact CBP prior 
to departure, contact information and a list of U.S. air, land and sea 
ports of entry can be found at: http://www.cbp.gov/xp/cgov/toolbox/ports/.

[[Page 24175]]

    This proposed rule also would revise License Exception BAG to allow 
nonresident aliens leaving the United States to take firearms, 
``accessories,'' ``attachments,'' ``components,'' ``parts,'' and 
ammunition controlled by ECCN 0A501 or 0A505 that they lawfully brought 
into the United States. This change would be consistent with 22 CFR 
123.17(d), which authorizes foreign persons leaving the United States 
to take firearms and ammunition controlled under Category I(a) of the 
USML (both non-automatic and semi-automatic) that they lawfully brought 
into the United States. This proposed rule would not make changes to 
the availability of License Exception BAG for shotguns and shotgun 
shells authorized under paragraph (e)(1) or (2).
    As a clarification to License Exception BAG, this proposed rule 
would add two sentences to the introductory text of paragraph (b)(4) to 
highlight the special provisions that apply in paragraph (e) for 
firearms and ammunition and in paragraph (h) for personal protective 
equipment under ECCN 1A613.c or .d. These two sentences would not 
change the existing requirement and have been included to assist the 
public in better identifying these special provisions.

License Exception STA

    This proposed rule would revise the regulations at Sec.  740.20 to 
make firearms controlled under ECCN 0A501 and most ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' controlled under 
ECCN 0A501 ineligible for License Exception STA. Only those ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' that are 
controlled under paragraph .x (i.e., those ``specially designed'' for 
0A501 or ITAR-controlled firearms that are not specifically listed 
either on the CCL or USML) are eligible for export under License 
Exception STA. Items controlled under ECCNs 0A502 and 0A503 are also 
excluded from STA eligibility.
    This proposed rule would exempt gun ``parts,'' ``components,'' 
``accessories'' and ``attachments'' controlled under ECCN 0A501.x; 
test, inspection and production equipment and ``parts,'' 
``components,'' ``accessories'' and ``attachments'' in ECCN 0B501; 
``software'' in 0D501; and ``technology'' in ECCN 0E501 from the 
License Exception STA end-use limitation set forth in Sec.  
740.20(b)(3)(ii) that applies to ``600 series'' items. That end-use 
limitation is intended to ensure that the military-related items 
controlled by most 600 series ECCNs are ultimately used by appropriate 
agencies of the governments of certain U.S allies or multilateral 
export control regime members. Because the aforementioned exempted 
items are not of a military nature, the limitation is not necessary. As 
a conforming change, this proposed rule also would remove ECCNs 0A985 
and 0E987 in paragraph (b)(2)(ii) and add in their place 0A503 and 
0E504. This change does not change the availability of License 
Exception STA, but simply reflects the fact that these items would now 
be controlled under ECCNs 0A503 and 0E504 and the License Exception STA 
exclusion would continue to apply to them.

Support Documentation for Firearms, Parts, Components, Accessories, and 
Attachments Controlled by ECCN 0A501

    This proposed rule would require that for commodities controlled by 
ECCN 0A501 exported or reexported transactions for which a license 
would be required, the exporter or reexporter must obtain, prior to 
submitting an application, an import permit (or copy thereof) if the 
importing country requires such permits for import of firearms. That 
import permit would be a record that must be kept by the exporter or 
reexporter as required by part 762 of the EAR. The purpose of this 
requirement is to assure foreign governments that their regulations 
concerning the importation of firearms are not circumvented. Obtaining 
an import certificate or equivalent official document issued by member 
states of the Organization of American States meets this requirement. 
To implement this change, this proposed rule would revise Sec.  748.12 
to include the commodities controlled under ECCNs 0A501 (except 
0A501.y), 0A502, 0A504 (except 0A504.f) and 0A505 (except 0A505.d) 
within the list of commodities that are subject to the requirement and 
would add a new paragraph (e) requiring that import certificates or 
permits be obtained from countries other than OAS member states if 
those states require such a certificate or permit.

Licenses for Firearms and Ammunition Would Be Limited to the Authorized 
End Use and End Users

    Consistent with other BIS licenses, including ``600 series'' and 
9x515 items, licenses for firearms and ammunition that move from the 
USML to the CCL would be limited to the authorized end use and end 
users specified on the license and supporting documentation submitted 
as part of the license application. This means any change in the 
authorized end use or end user for a licensed transaction would require 
a BIS authorization. This existing requirement of BIS licenses is 
specified in Sec.  750.7(a) and on the boiler plate text included on 
all BIS licenses. These requirements would also be applied to firearms 
and ammunition licenses. A change in end use or end user, including a 
change of authorized end use or end user within a single foreign 
country for a firearm or ammunition authorized under a BIS license, 
would require a BIS authorization. BIS does not propose any changes in 
this rule to these well-established and understood requirements on 
using BIS licenses. Applicants for firearms and ammunition licenses are 
also advised that BIS would continue to exercise its authority, as 
specified in Sec.  748.11 in the Note 2 to paragraph (a), on a case-by-
case basis to require a Statement by Ultimate Consignee and Purchaser 
as warranted.
    The exporter, reexporter or transferor using a BIS license, 
including for firearms and ammunition licenses, would also be required 
pursuant to Sec.  750.7(a) to inform the other parties identified on 
the license, such as the ultimate consignees and end users of the 
license's scope and of the specific conditions applicable to them. As 
an additional safeguard for firearms and ammunition licenses, BIS would 
when warranted include a license condition that would require the 
exporter, reexporter or transferor to receive from the other parties 
identified on the license a confirmation in writing that those other 
parties had received and agreed to the terms and conditions of the 
license. For example, the condition may state ``Prior to using this 
license, the exporter (reexporter or transferor) and other parties to 
the license must agree to the conditions in writing and the exporter 
(reexporter or transferor) must keep this on file with their other 
records.'' The documents described in this paragraph would be required 
to be kept for EAR recordkeeping purposes under part 762 of the EAR.

Conventional Arms Reporting for Certain Exports of ECCN 0A501.a and .b 
Commodities

    In Sec.  743.4 (Conventional arms reporting), this rule would 
revise paragraphs (c)(1)(i) and (c)(2)(i) to add ECCN 0A501.a and .b as 
commodities that would require Wassenaar Arrangement reporting and 
United Nations reporting under this conventional arms reporting section 
of the EAR. This requirement would assist the United States Government 
to meet its multilateral commitments for the special reporting 
requirements for exports of certain items listed on the Wassenaar 
Arrangement Munitions List and the UN Register of Conventional

[[Page 24176]]

Arms when these items are authorized for export under License 
Exceptions LVS, TMP, RPL, STA, or GOV (see part 740 of the EAR) or the 
Validated End User authorization (see Sec.  748.15 of the EAR) and for 
United Nations reporting. License Exceptions LVS and STA are identified 
in Sec.  743.4(b)(1), but because ECCN 0A501.a and .b commodities are 
not eligible for those two license exceptions, the reporting 
requirements under Sec.  743.4(c)(1)(i) and (c)(2)(i) would be limited 
to exports authorized License Exceptions TMP, GOV and RPL or the 
Validated End User authorization. This rule also adds contact 
information for these reports.

Changes to Export Clearance Requirements for Firearms Being Moved to 
the CCL

    In part 758 (Export Clearance Requirements), this rule would make 
certain changes to clarify that a filing of Electronic Export 
Information (EEI) to the Automated Export System (AES) would be 
required for exports of the firearms transferred from the USML pursuant 
to this rule regardless of value or destination, including exports to 
Canada. As noted above, this requirement will also apply, as is 
presently the case under the ITAR, for temporary exports of such items 
pursuant to License Exception TMP or BAG.
    In addition, this rule proposes to expand the data elements 
required as part of an AES filing for these items to include serial 
numbers, make, model and caliber. This requirement would ensure law 
enforcement officials are able to effectively verify that firearms 
exports are properly authorized and in conformance with all applicable 
regulations, including those associated with the temporary export and 
subsequent return of controlled firearms and unused ammunition. Similar 
to the description above regarding whether BIS would publish an EEI 
filing requirement in AES for personally-owned firearms and ammunition 
exported under License Exception BAG in the final rule, these expanded 
data elements required as part of an AES filing would be included in 
the final rule if CBP has made such data easily enterable in AES. If 
the necessary changes were not made by the time the final rule was to 
be published, CBP may continue to rely on CBP Form 4457 as described 
above.

Entry Clearance Requirements for Temporary Imports

    Temporary imports are transactions that involve both the temporary 
entry of an item into the U.S. from a foreign country and the 
subsequent export of that item from the U.S. To preserve the treatment 
of temporary import transactions for items in this rule that transfer 
from the USML in the ITAR to become subject to the EAR, BIS would need 
to create a process under the EAR to impose entry clearance 
requirements for temporary imports of such items based on BIS's 
authorities over U.S. exports.
    Therefore, BIS proposes a temporary imports entry clearance 
requirement by adding new Sec.  758.10. This new section would be 
limited to items in this rule that are both ``subject to the EAR'' and 
on the USMIL in 27 CFR 447.21. To allow such items to temporarily enter 
the U.S., this rule proposes a process to collect identifying 
information for the sole purpose of tracking items being temporarily 
imported for subsequent export. BIS would not impose a license 
requirement for such imports, but this information would be necessary 
to facilitate the export after a temporary import. The entry clearance 
requirement would be an EAR requirement and any false representation 
made under the new Sec.  758.10 would be a violation of the EAR.
    BIS is particularly interested in receiving comments on these 
temporary import provisions in Sec.  758.10 and the subsequent export 
under paragraph (b)(5) of License Exception TMP. A license requirement 
is not being proposed for these temporary imports, but BIS is proposing 
an entry clearance requirement whereby, as described above, the 
exporter at the time of import would need to make a legal 
representation to the U.S. Government under the EAR that the item was 
being temporarily imported into the United States for subsequent export 
under paragraph (b)(5) of License Exception TMP. BIS also welcomes 
comments on whether there are advantages to how the ITAR regulates 
temporary imports of USMIL items that should be incorporated into the 
Commerce final rule.

Changes to EAR Recordkeeping Requirements for Firearms Being Moved to 
the CCL

    In part 762 (Recordkeeping), this rule would make two changes to 
the recordkeeping requirements under the EAR. These changes would 
specify that certain records, that are already created and kept in the 
normal course of business, must be kept by the ``exporter'' or any 
other party to the transaction (see Sec.  758.3 of the EAR), that 
creates or receives such records.
    Specifically, in Sec.  762.2 (Records to be retained), this rule 
would redesignate paragraph (a)(11) as (a)(12) and add a new paragraph 
(a)(11) to specify the following information must be kept as an EAR 
record: Serial number, make, model, and caliber for any firearm 
controlled in ECCN 0A501.a and for shotguns with barrel length less 
than 18 inches controlled in 0A502. The ``exporter'' or any other 
``party to the transaction'' that creates or receives such records 
would be the person responsible for retaining this record.
    In Sec.  762.3 (Records exempt from recordkeeping requirements), 
this rule would narrow the scope of an exemption from the EAR 
recordkeeping requirements for warranty certificates. This rule would 
narrow this exclusion to specify the exclusion from the recordkeeping 
requirements does not apply (meaning the record would need to be kept 
under the recordkeeping requirements) for warranty certificates for any 
firearm controlled in ECCN 0A501.a and for shotguns with barrel length 
less than 18 inches controlled in 0A502, when the certificate issued is 
for an address located outside the United States. This would be an 
expansion of the EAR recordkeeping requirements, but because warranty 
certificates are already created and kept as part of normal business 
recordkeeping purposes, this expansion is not anticipated to create any 
new or increased burden under the EAR, because it is a document that is 
created in the normal course of business and are records that should be 
easily accessible. These recordkeeping requirements would assist the 
United States Government because this information is important to have 
access to for law enforcement concerns for these types of items.
    The public may submit comments on whether they agree with this BIS 
determination that these changes described above to the EAR 
recordkeeping requirements would not result in increased burdens under 
the EAR.

Alignment With the Wassenaar Arrangement Munitions List

    This rule maintains the alignment with respect to firearms, guns 
and armament, and ammunition that exists between the USML and the WAML. 
USML Category I firearms that would be added to the CCL under ECCN 
0A501 are controlled under category ML1 of the WAML. USML Category II 
guns and armament that would be added to the CCL under 0A602 are 
controlled under WAML category ML2.
    Rather than strictly following the Wassenaar Arrangement Munitions 
List pattern of placing production

[[Page 24177]]

equipment, ``software'' and ``technology'' for munitions list items in 
categories ML 18, ML 21 and ML 22, respectively, this rule follows the 
existing CCL numbering pattern for test, inspection and production 
equipment (0B501, 0B602 and 0B505), ``software'' (0D501, 0D602 and 
0D505) and ``technology'' (0E501, 0E602 and 0E505). BIS believes that 
including the ECCNs for test, inspection and production equipment, 
``software,'' and ``technology'' in the same category as the items to 
which they relate results in an easier way to understand the CCL than 
using separate categories.
    BIS believes that the controls in proposed ECCNs 0A501, 0A602 and 
0A505 are consistent with controls imposed by the Wassenaar 
Arrangement.

Appropriate Delayed Effective Date for a Final Rule

    BIS also invites comments from the public on the appropriate 
delayed effective date needed to prepare for the changes included in 
this proposed rule if published in final form. A 180-day delayed 
effective date was used for many of the other rules that moved items 
from the USML to the CCL, but certain rules included shorter delayed 
effective dates. BIS requests the public to provide comments on whether 
180-delayed effective date is warranted, or if some shorter period, 
such as 90-day delated effective date is warranted for this proposed 
rule if published in final form.

Request for Comments

    All comments on this proposed rule must be in writing and submitted 
via the Federal rulemaking portal www.regulations.gov or by mail or 
delivery to the address identified in the addresses section of this 
proposed rule. All comments (including any personal identifiable 
information) would be available for public inspection and copying. 
Anyone wishing to comment anonymously may do so by leaving the fields 
for information that would identify the commenter blank.

Export Administration Act

    Although the Export Administration Act of 1979 expired on August 
20, 2001, the President, through Executive Order 13222 of August 17, 
2001, 3 CFR, 2001 Comp., p. 783 (2002), as amended by Executive Order 
13637 of March 8, 2013, 78 FR 16129 (March 13, 2013) and as extended by 
the Notice of August 15, 2017, 82 FR 39005 (August 16, 2017), has 
continued the Export Administration Regulations in effect under the 
International Emergency Economic Powers Act. BIS continues to carry out 
the provisions of the Export Administration Act of 1979, as appropriate 
and to the extent permitted by law, pursuant to Executive Order 13222, 
as amended by Executive Order 13637.

Executive Order Requirements

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This proposed rule has been designated a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) of Executive Order 12866. Although the items identified in 
this proposed rule have been determined to no longer warrant ITAR 
control by the President, the proliferation of such items has been 
identified as a threat to domestic and international security if not 
classified and controlled at the appropriate level under the EAR. 
Commerce estimates that the combined effect of all rules to be 
published adding items removed from the ITAR to the EAR would increase 
the number of license applications to be submitted to BIS by 
approximately 30,000 annually.
    This proposed rule does not contain policies with Federalism 
implications as that term is defined under E.O. 13132.
    To control these items under the EAR that no longer warrant ITAR 
control, appropriate controls on the CCL needed to be included in the 
Department of Commerce proposed rule. This includes creating new ECCNs 
and revising certain existing ECCNs, as well as making other changes to 
the EAR to control items that would be moved from these three USML 
categories to the CCL once the section 38(f) notification process is 
completed and a final rule is published and becomes effective. Adding 
new controls and other requirements to the EAR imposes regulatory 
burdens on exporters and some other parties involved with those items, 
but compared to the burdens these exporters and other parties faced 
under the ITAR, these regulatory burdens, including financial costs, 
would be reduced significantly. The EAR is a more flexible regulatory 
structure whereby the items can still be controlled appropriately, but 
in a much more efficient way that would significantly reduce the 
burdens on exporters and other parties compared to the regulatory 
burdens they faced when the item were ``subject to the ITAR.'' 
Deregulatory does not mean a decontrol of these items.
    For those items in USML Categories I, II and III that would move by 
this rule to the CCL, BIS would be collecting the necessary information 
using the form associated with OMB Control No. 0694-0088. BIS estimates 
that this form takes approximately 43.8 minutes for a manual or 
electronic submission. Using the State Department's estimate that 
10,000 applicants annually would move from the USML to the CCL and 
BIS's estimate that 6,000 of the 10,000 applicants would require 
licenses under the EAR, that constitutes a burden of 4,380 hours for 
this collection under the EAR. Those companies are currently using the 
State Department's forms associated with OMB Control No. 1405-0003 for 
which the burden estimate is 1 hour per submission, which for 10,000 
applications results in a burden of 10,000 hours. Thus, subtracting the 
BIS burden hours of 4,380 from the State Department burden hours of 
10,000, the burden is reduced by 5,620 hours. The other 4,000 
applicants may use license exceptions under the EAR or the ``no license 
required'' designation, so these applicants would not be required to 
submit license applications under the EAR.
    In addition to the reduced burden hours of 5,620 hours, there would 
also be direct cost savings to the State Department that would result 
from the 10,000 license applications no longer being required under the 
ITAR once these items are moved to the EAR. The Department of State 
charges a registration fee to apply for a license under the ITAR. 
Pursuant to the AECA, ITAR, and associated delegations of authority, 
every person who engages in the business of brokering activities, 
manufacturing, exporting, or temporarily importing any defense articles 
or defense services must register with the Department of State and pay 
a registration fee. The Department of State adopted the current fee 
schedule to align the registration fees with the cost of licensing, 
compliance and other related activities. The Department of Commerce 
would incur additional costs to administer these controls and process 
license applications. However, the Department of Commerce does not 
charge a registration fee to apply for a license under the EAR, and we 
are unable to estimate the increase in costs to the Department of 
Commerce to process the new license applications.

[[Page 24178]]

Therefore, we are unable to provide an estimate of the net change in 
resource costs to the government from moving these items from the ITAR 
to the EAR. It is the case, however, that the movement of these items 
from the ITAR would result in a permanent and recurring direct transfer 
of $2,500,000 per year from the government to the exporting public, 
less the increased cost to taxpayers, because they would no longer pay 
fees to the State Department for licenses and there is no fee charged 
by the Department of Commerce to apply for a license.

Estimated Cost Savings

    For purposes of E.O. 13771 of January 30, 2017 (82 FR 9339), the 
Department of State and Department of Commerce proposed rules are 
expected to be ``net deregulatory actions.'' The Department of Commerce 
has conducted this analysis in close consultation with the Department 
of State, because of how closely linked the two proposed rules are for 
the regulated public and the burdens imposed under the U.S. export 
control system.
    E.O. 13771 and guidance provided to the agencies on interpreting 
the intended scope of the E.O. do not use the term ``net deregulatory 
action,'' but rather refer to deregulatory actions. As outlined above, 
the Departments of State and Commerce proposed rules are closely linked 
and are best viewed as a consolidated regulatory action although being 
implemented by two different agencies. Also, as noted above, items may 
not be subject to both sets of regulations. Therefore, the movement of 
a substantial number of items from the USML determined to no longer 
warrant ITAR control to the CCL would result in a significant reduction 
of regulatory burden for exporters and other persons involved with such 
items that were previously ``subject to the ITAR.''
    The Departments of State and Commerce for purposes of E.O. 13771 
have agreed to equally share the cost burden reductions that would 
result from the publication of these two integral regulatory actions. 
The Department of State would receive 50% and the Department of 
Commerce would receive 50% for purposes of calculating the deregulatory 
benefit of these two integral regulatory actions.
    Under this agreed formulation, the burden reductions will be 
calculated as follows:
    For purposes of the Department of Commerce, the ``net deregulatory 
actions'' would result in a permanent and recurring cost savings of 
$1,250,000 per year, and a reduction in burden hours by 2,810 hours. 
The reduction in burden hours by 2,810 would result in an additional 
cost savings of \1\ $126,281 to the exporting public. Therefore, the 
total dollar cost savings would be $1,376,281 for purposes of E.O. 
13771 for the Department of Commerce.
---------------------------------------------------------------------------

    \1\ The Department of Commerce used the Department of State's 
estimate that the burden hour cost for completing a license 
application is $44.94 per hour. Multiplied by the estimated burden 
hour savings of 2,810 equals a cost savings to the public of 
$126,281.
---------------------------------------------------------------------------

    For purposes of the Department of State, the ``net deregulatory 
actions'' would result in a permanent and recurring cost savings of 
$1,250,000 per year, and a reduction in burden hours by 2,810 hours. 
The reduction in burden hours by 2,810 would result in an additional 
cost savings of $126,281 to the exporting public. Therefore, the total 
dollar cost savings would be $1,376,281 for purposes of E.O. 13771 for 
the Department of State.
    The Department of Commerce welcomes comments from the public on the 
analysis under E.O. 13771 described here. Comments from companies that 
would no longer need to register with the Department of State because 
the company only deals with items under USML Category I, II, and/or III 
that would move to the CCL would be particularly helpful for the 
Department of Commerce and Department of State to receive. Comments are 
also encouraged on any of the other collections that may be relevant 
for the items that would move from the USML to the CCL. In particular, 
data on Department of State forms that would no longer need to be 
submitted would be helpful to receive.

Paperwork Reduction Act Requirements

    Notwithstanding any other provision of law, no person may be 
required to respond to or 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 OMB control 
number.
    This proposed regulation involves four collections currently 
approved by OMB under these BIS collections and control numbers: 
Simplified Network Application Processing System (control number 0694-
0088), which includes, among other things, license applications; 
License Exceptions and Exclusions (control number 0694-0137); Import 
Certificates and End-User Certificates (control number 0694-0093); Five 
Year Records Retention Period (control number 0694-0096); and the U.S. 
Census Bureau collection for the Automated Export System (AES) Program 
(control number 0607-0152).
    This proposed rule would affect the information collection, under 
control number 0694-0088, associated with the multi-purpose application 
for export licenses. This collection carries a burden estimate of 43.8 
minutes for a manual or electronic submission for a burden of 31,833 
hours. BIS believes that the combined effect of all rules to be 
published adding items removed from the ITAR to the EAR that would 
increase the number of license applications to be submitted by 
approximately 30,000 annually, resulting in an increase in burden hours 
of 21,900 (30,000 transactions at 43.8 minutes each) under this control 
number. For those items in USML Categories I, II and III that would 
move by this rule to the CCL, the State Department estimates that 
10,000 applicants annually will move from the USML to the CCL. BIS 
estimates that 6,000 of the 10,000 applicants would require licenses 
under the EAR, resulting in a burden of 4,380 hours under this control 
number. Those companies are currently using the State Department's 
forms associated with OMB Control No. 1405-0003 for which the burden 
estimate is 1 hour per submission, which for 10,000 applications 
results in a burden of 10,000 hours. Thus, subtracting the BIS burden 
hours of 4,380 from the State Department burden hours of 10,000, the 
burden would be reduced by 5,620 hours. (See the description above for 
the E.O. 13771 analysis for additional information on the cost benefit 
savings and designation of the two rules as ``net deregulatory 
actions''.)
    This proposed rule would also affect the information collection 
under control number 0694-0137, addressing the use of license 
exceptions and exclusions. Some parts and components formerly on the 
USML, and ``software'' and ``technology'' for firearms and their parts 
and components formerly on the USML, would become eligible for License 
Exception STA under this proposed rule. Additionally, test, inspection 
and production equipment and ``software'' and ``technology'' related to 
those firearms and ``parts'' may become eligible for License Exception 
STA. BIS believes that the increased use of License Exception STA 
resulting from the combined effect of all rules to be published adding 
items removed from the ITAR to the EAR would increase the burden 
associated with control number 0694-0137 by about 23,858 hours (20,450 
transactions at 1 hour and 10 minutes each).

[[Page 24179]]

    BIS expects that this increase in burden as a result of the 
increased use of License Exception STA would be more than offset by a 
reduction in burden hours associated with approved collections related 
to the ITAR. This proposed rule addresses controls on firearms and 
``parts,'' production equipment and ``parts'' and related ``software'' 
and ``technology'' and specifically non-automatic and semi-automatic 
firearms and their ``parts'' and ``parts,'' ``components,'' 
``attachments,'' and ``accessories'' that are used in both semi-
automatic and fully automatic firearms. BIS has made this determination 
on the basis that with few exceptions, the ITAR allows exemptions from 
license requirements only for exports to Canada, and requires a 
specific State Department authorization for most exports of firearms 
used for hunting and recreational purposes and exports of ``parts,'' 
``components,'' ``attachments,'' and ``accessories'' that are common to 
military fully automatic firearms and their semi-automatic civilian 
counterparts, even when destined to NATO and other close allies and 
also requires State Department authorization for the exports necessary 
to produce ``parts'' and ``components'' for defense articles in the 
inventories of the United States and its NATO and other close allies. 
However, under the EAR, as specified in this proposed rule, a number of 
low-level parts would be eligible for export under License Exception 
STA and would therefore not require a license to such destinations.
    This proposed rule would also affect the information collection 
under control number 0694-0096, for the five-year recordkeeping 
retention because of two changes this rule would make to part 762 of 
the EAR. This rule would add a new paragraph (a)(55) to specify the 
following information must be kept as an EAR record: Serial number, 
make, model, and caliber for any firearm controlled in ECCN 0A501.a and 
for shotguns with barrel length less than 18 inches controlled in 
0A502. This rule would also require warranty certificates for these 
items to be retained for EAR recordkeeping. However, because these 
records are already created and kept as part of normal business 
recordkeeping, this expansion is not anticipated to create any new or 
increased burden under the EAR.
    Even in situations in which a license would be required under the 
EAR, the burden would likely be reduced compared to a license 
requirement under the ITAR. In particular, license applications for 
exports of ``technology'' controlled by ECCN 0E501 would likely be less 
complex and burdensome than the authorizations required to export ITAR-
controlled technology, i.e., Manufacturing License Agreements and 
Technical Assistance Agreements (as a result of the differences in the 
scope of the ITAR's and the EAR's technology controls).
    This proposed rule would affect the information collection under 
control number 0694-0093, import certificates and end-user certificates 
because of the changes included in this proposed rule. First, this 
regulation would require that for shipments requiring a license of 
firearms, ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' controlled under ECCN 0A501, the exporter obtain a copy 
of the import certificate or permit if the importing country requires 
one for importing firearms. License applications for which an import or 
end-user certificate is already required under Sec.  748.12 of the EAR 
would not be subject to this new requirement. BIS expects that this 
requirement would result in no change in the burden under control 
number 0694-0093. Second, this proposed rule also would require that 
prior to departure, travelers leaving the United States and intending 
to temporarily export firearms, parts, and components controlled under 
ECCN 0A501 under License Exception BAG declare the firearms and parts 
to a CBP officer and present the firearms and parts to the CBP officer 
for inspection. As the State Department also requires that persons 
temporarily exporting firearms, parts and components declare the items 
to CBP, BIS does not expect that the requirement in this proposed rule 
would result in a change in burden under control number 0694-0093.
    Third, this proposed rule would affect the information collection 
under control number 0694-0093 by creating a new temporary import entry 
clearance requirement by adding Sec.  758.10. This new section would be 
limited to items in this rule that are both ``subject to the EAR'' and 
on the United States Munitions List (USMIL) in 27 CFR 447.21. To allow 
such items to temporarily enter the U.S., this rule proposes a process 
to collect identifying information for the sole purpose of tracking 
items being temporarily imported for subsequent export under License 
Exception TMP. BIS would not impose a license requirement for such 
imports, but collecting this information would be necessary to 
facilitate the export after a temporary import. The temporary import 
entry clearance requirement in Sec.  758.10 would also conform to the 
requirement in License Exception TMP under Sec.  740.9(b)(5), so 
providing this information to CBP at the entry after a temporary import 
would facilitate the export phase of a temporary import under License 
Exception TMP. At the time of entry for a temporary import, the 
importer would need to provide a statement to CBP indicating that this 
shipment was being temporarily imported in accordance with the EAR for 
subsequent export in accordance with and under the authority of License 
Exception TMP. The entry clearance requirement would be an EAR 
requirement and any false representation made under the new Sec.  
758.10 would be a violation of the EAR. The importer would also need to 
provide CBP an invoice or other appropriate import-related 
documentation (or electronic equivalents) that includes a complete list 
and description of the items being imported, including their model, 
make, caliber, serial numbers, quantity, and U.S. dollar value. If 
imported for a trade show, exhibition, demonstration, or testing, the 
temporary importer would need to provide CBP with the relevant 
invitation or registration documentation for the event and an 
accompanying letter that details the arrangements to maintain effective 
control of the firearms while they are temporarily in the United 
States. Lastly, at the time of exportation, as requested by CBP, the 
exporter, or an agent acting on his or her behalf, would have to 
provide the entry document number or a copy of the CBP document under 
which the ``item'' ``subject to the EAR'' on the USMIL was temporarily 
imported under this proposed entry clearance requirement. As the State 
Department also requires that persons temporarily importing items in 
this rule provide the same type of information to CBP, BIS expects that 
the requirement in this proposed rule would result in a change in 
burden under control number 0694-0093, but because of the decrease 
under the burden imposed under the State collection the burden on the 
public will not change.
    This proposed rule would also affect the information collection 
under control number 0607-0152, for filing EEI in AES because of one 
change this rule would make to part 758 of the EAR. Under new paragraph 
(b)(10), EEI would be required for all exports of items controlled 
under ECCNs 0A501.a or .b, shotguns with a barrel length less than 18 
inches controlled under ECCN 0A502, or ammunition controlled under ECCN 
0A505 except for .c, regardless of value or destination, including 
exports to Canada. Exports of these USML firearms and ammunition prior 
to

[[Page 24180]]

moving to the CCL required filing EEI in AES for all items ``subject to 
the ITAR,'' so the burden in this collection would not change for the 
exporter. For some exporters, however, there may be an EEI filing 
requirement that would otherwise not have existed, such as for the 
export of a firearm that would be controlled under ECCN 0A501.a 
authorized under License Exception BAG or the export of certain 
firearms or ammunition to Canada.
    The proposed rule would include a requirement that, for all exports 
of items controlled under ECCNs 0A501.a or .b, or shotguns with a 
barrel length less than 18 inches controlled under ECCN 0A502, in 
addition to any other required data for the associated EEI filing 
requirements, the exporter provide to CBP the serial number, make, 
model, and caliber for each firearm being exported. The Department of 
Commerce is carrying over the existing CBP filing requirements for 
items transferred from the USML to the CCL. The Department of Homeland 
Security currently is collecting these data elements for firearms 
``subject to the ITAR'' under OMB Control Number 1651-0010 (CBP Form 
4457, Certificate of Registration for Personal Effects Taken Abroad). 
There is no change to the information being collected or to the burden 
hours as a result of this rule. Separate from this rule, CBP will 
update the information collection to reflect the use of AES or some 
other simplified electronic alternative to CBP Form 4457.
    Any comments regarding the collection of information associated 
with this proposed rule, including suggestions for reducing the burden, 
may be sent to Jasmeet K. Seehra, Office of Management and Budget 
(OMB), by email to [email protected], or by fax to (202) 
395-7285.

Administrative Procedure Act and Regulatory Flexibility Act 
Requirements

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 
601 et seq., generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to the notice and comment 
rulemaking requirements under the Administrative Procedure Act (5 
U.S.C. 553) or any other statute, unless the agency certifies that the 
proposed rule would not have a significant economic impact on a 
substantial number of small entities. Under section 605(b) of the RFA, 
however, if the head of an agency certifies that a proposed rule would 
not have a significant impact on a substantial number of small 
entities, the statute does not require the agency to prepare a 
regulatory flexibility analysis. Pursuant to section 605(b), the Chief 
Counsel for Regulation, Department of Commerce, submitted a memorandum 
to the Chief Counsel for Advocacy, Small Business Administration, 
certifying that this proposed rule would not have a significant impact 
on a substantial number of small entities.

Number of Small Entities

    The Bureau of Industry and Security (BIS) does not collect data on 
the size of entities that apply for and are issued export licenses. 
Although BIS is unable to estimate the exact number of small entities 
that would be affected by this proposed rule, it acknowledges that this 
proposed rule would affect some unknown number.

Economic Impact

    This proposed rule and the companion State rule would assist in 
making the United States Munitions List (22 CFR part 121) (USML) into a 
more ``positive'' list, i.e., a list that does not use generic, catch-
all controls on any ``part,'' ``component,'' ``accessory,'' 
``attachment,'' or ``end item'' that was in any way specifically 
modified for a defense article, regardless of the article's military or 
intelligence significance or non-military applications. At the same 
time, articles that are determined no longer to warrant control on the 
USML would become controlled on the Commerce Control List (CCL). Such 
items, along with certain military items that currently are on the CCL, 
would be identified in specific Export Control Classification Numbers 
(ECCNs) known as the ``600 series'' ECCNs. In addition, some items 
currently on the CCL would move from existing ECCNs to the new ``600 
series'' ECCNs. This proposed rule addresses USML Category I, II and 
III articles that would be removed from the USML and added to the CCL.
    Category I of the USML, entitled ``Firearms, Close Assault Weapons 
and Combat Shotguns,'' consists of small arms (typically up to a 
caliber of 0.50 inches) and related parts, components, accessories, 
attachments, production equipment, software, and technology. Fully 
automatic firearms would remain on the USML as would parts and 
components that are used only in fully automatic firearms. However, 
non-automatic and semi-automatic firearms, their parts and components 
and the parts and components common to them and to fully automatic 
firearms would become subject to the EAR. Department of State officials 
have informed BIS that license applications for such parts and 
components are a high percentage of the license applications for USML 
articles reviewed by that department. Such parts and components are 
more likely to be produced by small businesses than are complete 
firearms.
    Category II of the USML, entitled ``Guns and Armament,'' 
encompasses large guns (caliber over 0.50 inches) such as howitzers, 
mortars, cannon and recoilless rifles along with related parts, 
components, accessories, attachments, production equipment, software 
and technology. Modern large guns would remain on the USML. Guns and 
armament manufactured between 1890 and 1919 would be controlled on the 
CCL. Unless specified elsewhere on the CCL or the USML, ``parts,'' 
``components,'' ``accessories,'' ``attachments,'' production equipment, 
``software'' and ``technology'' for large guns would be controlled on 
the CCL.
    Category III of the USML, entitled ``Ammunition/Ordnance,'' 
encompasses ammunition for a wide variety of firearms that may have 
military, law enforcement or civilian applications. Ammunition that has 
only or primarily military applications would remain on the USML as 
would parts, production equipment, ``software'' and ``technology'' 
therefor. Ammunition for firearms that have primarily civilian and 
sporting application and ammunition that is used in civilian, law 
enforcement and military small arms would move to the CCL. In most 
instances, these firearms have a caliber of 0.50 inches or less 
although ammunition for manual firearms with a caliber up to 0.72 
inches is included. The proposed rule also applies to ``parts,'' 
``components,'' production equipment, and ``technology'' related to 
that ammunition.
    Changing the jurisdictional status of the articles described in 
this proposed rule would reduce the burden on small entities (and other 
entities as well) through elimination of some license requirements, 
simpler license application procedures, and reduced (or eliminated) 
registration fees. In addition, small entities would be able to take 
advantage of de minimis treatment under the EAR for all items that this 
proposed rule would transfer from the USML to the CCL, provided those 
items meet the applicable de minimis threshold level. In practice, the 
greatest impact of this proposed rule on small entities would likely be 
reduced administrative costs and reduced delay for exports of items 
that are now on the USML but would become subject to the EAR.
    Small entities (and other entities as well) that are affected by 
this proposed

[[Page 24181]]

rule would benefit from the elimination of some license requirements 
implemented by this proposed rule. Six types of ``parts'' and 
``components,'' identified in ECCN 0A501.y, would be designated 
immediately as ``parts'' and ``components'' that, even if ``specially 
designed'' for a military use or a Category I firearm, have little or 
no military significance. These ``parts'' and ``components,'' which 
under the ITAR require a license to nearly all destinations would, 
under the EAR, require a license to Cuba, Iran, Sudan, North Korea, 
Syria and the People's Republic of China as well as to destinations 
subject to United Nations arms embargoes.
    Furthermore, many exports and reexports of Category I firearms 
along with ``parts'' and ``components'' that would be placed on the CCL 
by this proposed rule, would become eligible for license exceptions 
that apply to shipments to United States government agencies, shipments 
valued at $500 or less, ``parts'' and ``components'' being exported for 
use as replacement parts, and temporary exports. Similarly, exports and 
reexports of Category II firearms ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' that would be placed on the CCL by 
this proposed rule would become eligible for those license exceptions, 
although the value limit would be $3,000. Category III ammunition 
placed on the CCL by this proposed rule would also become eligible with 
a value limit of $100.
    Even for exports and reexports in which a license would be 
required, the process would be simpler and less costly under the EAR. 
When a USML Category I, II, or III article is moved to the CCL, the 
number of destinations for which a license is required would remain 
largely unchanged. However, the burden on the license applicant would 
decrease because the licensing procedure for CCL items is simpler and 
more flexible than the licensing procedure for USML defense articles.
    Under the USML licensing procedure, an applicant must include a 
purchase order or contract with its application. There is no such 
requirement under the CCL licensing procedure. This difference gives 
the CCL applicant at least two advantages. First, the applicant has a 
way of determining whether the U.S. Government would authorize the 
transaction before it enters into potentially lengthy, complex and 
expensive sales presentations or contract negotiations. Under the USML 
licensing procedure, the applicant would need to caveat all sales 
presentations with a reference to the need for government approval and 
would more likely have to engage in substantial effort and expense with 
the risk that the government might reject the application. Second, a 
CCL license applicant need not limit its application to the quantity or 
value of one purchase order or contract. It may apply for a license to 
cover all of its expected exports or reexports to a particular 
consignee over the life of a license, reducing the total number of 
licenses for which the applicant must apply.
    In addition, many applicants exporting or reexporting items that 
this proposed rule would transfer from the USML to the CCL would 
realize cost savings through the elimination of some or all 
registration fees currently assessed under the ITAR. This is 
particularly relevant to small- and medium-sized companies that 
manufacture or export parts and components for Category I firearms. 
Registration fees for manufacturers and exporters of articles on the 
USML start at $2,250 per year, increase to $2,750 for organizations 
applying for one to ten licenses per year and further increase to 
$2,750 plus $250 per license application (subject to a maximum of three 
percent of total application value) for those who need to apply for 
more than ten licenses per year. There are no registration or 
application processing fees for applications to export items currently 
listed on the CCL. Once the items that are the subject to this proposed 
rulemaking are removed from the USML and added to the CCL, entities 
currently applying for licenses from the Department of State could find 
their registration fees reduced if the number of USML licenses those 
entities need declines. If an entity's entire product line is moved to 
the CCL, then its ITAR registration and registration fee requirement 
would be eliminated.
    Finally, de minimis treatment under the EAR would become available 
for all items that this proposed rule would transfer from the USML to 
the CCL. Items subject to the ITAR remain subject to the ITAR when they 
are incorporated abroad into a foreign-made product regardless of the 
percentage of U.S. content in that foreign-made product. This proposed 
rule would apply that same principle to ``600 series'' items only if 
the foreign-made item is being exported to a country that is subject to 
a United States arms embargo. In all other cases, foreign-made products 
that incorporate items that this proposed rule would move to the CCL 
would be subject to the EAR only if their total controlled U.S.-origin 
content exceeded 25 percent. Because including small amounts of U.S.-
origin content would not subject foreign-made products to the EAR, 
foreign manufacturers would have less incentive to avoid such U.S.-
origin ``parts'' and ``components,'' a development that potentially 
would mean greater sales for U.S. suppliers, including small entities.
    For items currently on the CCL that would be moved from existing 
ECCNs to the new ``600 series,'' license exception availability would 
be narrowed somewhat. However, BIS believes that the increased burden 
imposed by those actions would be offset substantially by the reduction 
in burden attributable to the moving of items from the USML to CCL and 
the compliance benefits associated with the consolidation of all WAML 
items subject to the EAR in one series of ECCNs.

Conclusion

    BIS is unable to determine the precise number of small entities 
that would be affected by this proposed rule. Based on the facts and 
conclusions set forth above, BIS believes that any burdens imposed by 
this proposed rule would be offset by a reduction in the number of 
items that would require a license, simpler export license 
applications, reduced or eliminated registration fees, and application 
of a de minimis threshold for foreign-made items incorporating U.S.-
origin ``parts'' and ``components,'' which would reduce the incentive 
for foreign buyers to design out or avoid U.S.-origin content. For 
these reasons, the Chief Counsel for Regulation of the Department of 
Commerce certified to the Chief Counsel for Advocacy of the Small 
Business Administration that this proposed rule, if adopted in final 
form, would not have a significant economic impact on a substantial 
number of small entities.

List of Subjects

15 CFR Parts 736 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 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

[[Page 24182]]

15 CFR Parts 746 and 774

    Exports, Reporting and recordkeeping requirements.

15 CFR Part 758

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

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Reporting and recordkeeping 
requirements.

    For the reasons stated in the preamble, parts 736, 740, 742, 743, 
744, 746, 748, 758, 762, 772 and 774 of the Export Administration 
Regulations (15 CFR parts 730-774) are proposed to be amended as 
follows:

PART 736--GENERAL PROHIBITIONS

0
1. The authority citation for 15 CFR part 736 is revised to read as 
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 2151 note; 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. 13338, 69 FR 26751, 3 CFR, 2004 Comp., 
p. 168; Notice of May 9, 2017, 82 FR 21909 (May 10, 2017); Notice of 
August 15, 2017, 82 FR 39005 (August 16, 2017); Notice of November 
6, 2017, 82 FR 51971 (November 8, 2017).

0
2. Supplement No. 1 to part 736 is amended by revising paragraph (e)(3) 
to read as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *
    (e) * * *
    (3) Prior commodity jurisdiction determinations. If the U.S. State 
Department has previously determined that an item is not subject to the 
jurisdiction of the ITAR and the item was not listed in a then existing 
``018'' series ECCN (for purposes of the ``600 series'' ECCNs, or the 
0x5zz ECCNs) or in a then existing ECCN 9A004.b or related software or 
technology ECCN (for purposes of the 9x515 ECCNs), then the item is per 
se not within the scope of a ``600 series'' ECCN, a 0x5zz ECCN, or a 
9x515 ECCN. If the item was not listed elsewhere on the CCL at the time 
of such determination (i.e., the item was designated EAR99), the item 
shall remain designated as EAR99 unless specifically enumerated by BIS 
or DDTC in an amendment to the CCL or to the USML, respectively.
* * * * *

PART 740--LICENSE EXCEPTIONS

0
3. The authority citation for 15 CFR 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 15, 2017, 82 FR 39005 (August 16, 2017).

0
4. Section 740.9 is amended by:
0
a. Adding five sentences at the end of paragraph (a) introductory text;
0
b. Adding one sentence at the end of paragraph (b)(1) introductory 
text;
0
c. Adding paragraph (b)(5); and
0
d. Redesignating notes 1 through 3 to paragraph (b) as notes 2 through 
4 to paragraph (b);
    The additions read as follows:


Sec.  740.9   Temporary imports, exports, reexports, and transfers (in-
country) (TMP).

* * * * *
    (a) * * * This paragraph (a) does not authorize any export of a 
commodity controlled under ECCNs 0A501.a or .b, or shotguns with a 
barrel length less than 18 inches controlled under ECCN 0A502 to, or 
any export of such an item that was imported into the United States 
from, a country in Country Group D:5 (Supplement No. 1 of this part), 
or from Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, 
Ukraine, or Uzbekistan. The only provisions of this paragraph (a) that 
are eligible for use to export such items are paragraph (a)(5) of this 
section (``Exhibition and demonstration'') and paragraph (a)(6) of this 
section (``Inspection, test, calibration, and repair''). In addition, 
this paragraph (a) may not be used to export more than 75 firearms per 
shipment. In accordance with the requirements in Sec.  758.1(b)(10) and 
(g)(4) of the EAR, the exporter or its agent must provide documentation 
that includes the serial number, make, model, and caliber of each 
firearm being exported by filing these data elements in an EEI filing 
in AES. In accordance with the exclusions in License Exception TMP 
under paragraph (b)(5), the entry clearance requirements in Sec.  
758.1(b)(10) do not permit the temporary import of firearms controlled 
in ECCN 0A501.a or .b that are shipped from or manufactured in a 
Country Group D:5 country; or that are shipped from or manufactured in 
Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, 
Ukraine, or Uzbekistan (except for any firearm model controlled by 
0A501 that is specified under Annex A in Supplement No. 4 to part 740, 
or shotguns with a barrel length less than 18 inches controlled in ECCN 
0A502 that are shipped from or manufactured in a Country Group D:5 
country, or from Russia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
Turkmenistan, Ukraine, or Uzbekistan, because of the exclusions in 
License Exception TMP under paragraph (b)(5).
* * * * *
    (b) * * *
    (1) * * * No provision of paragraph (b) of this section, other than 
paragraph (b)(3), (4), or (5), may be used to export firearms 
controlled by ECCN 0A501.a, .b or shotguns with a barrel length less 
than 18 inches controlled in ECCN 0A502.
* * * * *
    (5) Exports of firearms and certain shotguns temporarily in the 
United States. This paragraph (b)(5) authorizes the export of no more 
than 75 end item firearms per shipment controlled by ECCN 0A501.a or 
.b, or shotguns with a barrel length less than 18 inches controlled in 
ECCN 0A502 that are temporarily in the United States for a period not 
exceeding one year, provided that:
    (i) The firearms were not shipped from or manufactured in a U.S. 
arms embargoed country, i.e., destination listed in Country Group D:5 
in Supplement No. 1 to part 740 of the EAR;
    (ii) The firearms were not shipped from or manufactured in Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, except for any firearm model controlled by 0A501 that is 
specified under Annex A in Supplement No. 4 to part 740; and
    (iii) The firearms are not ultimately destined to a U.S. arms 
embargoed country, i.e., destination listed in Country Group D:5 in 
Supplement No. 1 to part 740 of the EAR, or to Russia, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or Uzbekistan;
    (iv) When the firearms entered the U.S. as a temporary import, the 
temporary importer or its agent:
    (A) Provided the following statement to U.S. Customs and Border 
Protection: ``This shipment will be exported in accordance with and 
under the authority of License Exemption TMP (15 CFR 740.9(b)(5))'';
    (B) Provided to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value; and
    (C) Provided (if temporarily imported for a trade show, exhibition,

[[Page 24183]]

demonstration, or testing) to U.S. Customs and Border Protection the 
relevant invitation or registration documentation for the event and an 
accompanying letter that details the arrangements to maintain effective 
control of the firearms while they are in the United States.
    (v) In addition to the export clearance requirements of part 758 of 
the EAR, the exporter or its agent must provide the import 
documentation related to paragraph (b)(5)(iv)(B) of this section to 
U.S. Customs and Border Protection at the time of export.

    Note 1 to paragraph (b)(5):
    In addition to complying with all applicable EAR requirements 
for the export of commodities described in paragraph (b)(5), 
exporters and temporary importers should contact U.S. Customs and 
Border Protection (CBP) at the port of temporary import or export, 
or at the CBP website, for the proper procedures for temporarily 
importing or exporting firearms controlled in ECCN 0A501.a or .b or 
shotguns with a barrel length less than 18 inches controlled in ECCN 
0A502, including regarding how to provide any data or documentation 
required by BIS.

* * * * *
0
5. Section 740.11 is amended by:
0
a. Adding a sentence at the end of the introductory text;
0
b. Adding Note 2 to paragraph (b)(2); and
0
c. Redesignating note 1 to paragraph (c)(1) as note 3 to paragraph 
(c)(1) and notes 1 and 2 to paragraph (e) as notes 4 and 5 to paragraph 
(e).
    The additions read as follows:


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

    * * * Commodities listed in ECCN 0A501 are eligible only for 
transactions described in paragraphs (b)(2)(i) and (ii) of this 
section. Any item listed in a 0x5zz ECCN for export, reexport, or 
transfer (in-country) to an E:1 country are eligible only for 
transactions described in paragraphs (b)(2)(i) and (ii) solely for U.S. 
government official use of this section.
* * * * *
    Note 2 to paragraph (b)(2): Items controlled for NS, MT, CB, NP, FC 
or AT reasons may not be exported, reexported, or transferred (in-
country) to, or for the use of military, police, intelligence entities, 
or other sensitive end-users of a government in a Country Group E:1, or 
E:2 country.
* * * * *
0
6. Section 740.14 is amended by revising paragraph (b)(4), revising the 
heading to paragraph (e), and by adding paragraphs (e)(3) and (4) to 
read as follows:


Sec.  740.14  Baggage (BAG).

* * * * *
    (b) * * *
    (4) Tools of trade. Usual and reasonable kinds and quantities of 
tools, instruments, or equipment and their containers and also 
technology for use in the trade, occupation, employment, vocation, or 
hobby of the traveler or members of the household who are traveling or 
moving. For special provisions regarding firearms and ammunition, see 
paragraph (e) of this section. For special provisions regarding 
encryption commodities and software subject to EI controls, see 
paragraph (f) of this section. For a special provision that specifies 
restrictions regarding the export or reexport of technology under this 
paragraph (b)(4), see paragraph (g) of this section. For special 
provisions regarding personal protective equipment under ECCN 1A613.c 
or .d, see paragraph (h) of this section.
* * * * *
    (e) Special provisions for firearms and ammunition. * * *
    (3) A United States citizen or a permanent resident alien leaving 
the United States may export under this License Exception firearms, 
``parts,'' ``components,'' ``accessories,'' or ``attachments'' 
controlled under ECCN 0A501 and ammunition controlled under ECCN 
0A505.a, subject to the following limitations:
    (i) Not more than three firearms and 1,000 rounds of ammunition may 
be taken on any one trip.
    (ii) ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' exported pursuant to this paragraph must be of a kind 
and limited to quantities that are reasonable for the activities 
described in paragraph (e)(3)(iv) of this section or that are necessary 
for routine maintenance of the firearms being exported.
    (iii) The commodities must be with the person's baggage.
    (iv) The commodities must be for the person's exclusive use and not 
for resale or other transfer of ownership or control. Accordingly, 
except as provided in paragraph (e)(4) of this section, firearms, 
``parts,'' ``components,'' ``accessories,'' ``attachments,'' and 
ammunition, may not be exported permanently under this License 
Exception. All firearms, ``parts,'' ``components,'' ``accessories,'' or 
``attachments'' controlled under ECCN 0A501 and all unused ammunition 
controlled under ECCN 0A505.a exported under this License Exception 
must be returned to the United States.
    (v) Travelers leaving the United States temporarily are required to 
declare the firearms, ``parts,'' ``components,'' ``accessories,'' 
``attachments,'' and ammunition being exported under this license 
exception to a Customs and Border Protection (CBP) officer prior to 
departure from the United States and present such items to the CBP 
officer for inspection, confirming that the authority for the export is 
License Exception BAG and that the exporter is compliant with its 
terms.
    (4) A nonresident alien leaving the United States may export or 
reexport under this License Exception only such firearms controlled 
under ECCN 0A501 and ammunition controlled under ECCN 0A505 as he or 
she brought into the United States under the provisions of Department 
of Justice Regulations at 27 CFR 478.115(d).
* * * * *


Sec.  740.16   [Amended]

0
7. Section 740.16 is amended by removing ``0A987'' from paragraph 
(b)(2)(iv) and adding in its place ``0A504''.
0
8. Section 740.20 is amended by revising paragraph (b)(2)(ii) to read 
as follows:


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

* * * * *
    (b) * * *
    (2) * * *
    (ii) License Exception STA may not be used for:
    (A) Any item controlled in ECCNs 0A501.a, .b, .c, .d, or .e; 0A981; 
0A982; 0A983; 0A503, 0E504, 0E982; or
    (B) Shotguns with barrel length less than 18 inches controlled in 
0A502.
* * * * *
0
9. Add Supplement No. 4 to part 740 to read as follows:

Supplement No. 4 to Part 740--Annex A Firearm Models

    (a) Pistols/revolvers.
    (1) German Model P08 Pistol = SMCR.
    (2) IZH 34M, .22 Target pistol.
    (3) IZH 35M, .22 caliber Target pistol.
    (4) Mauser Model 1896 pistol = SMCR.
    (5) MC-57-1 pistol.
    (6) MC-1-5 pistol.
    (7) Polish Vis Model 35 pistol = SMCR.
    (8) Soviet Nagant revolver = SMCR.
    (9) TOZ 35, .22 caliber Target pistol.
    (10) MTs 440.
    (11) MTs 57-1.
    (12) MTs 59-1.
    (13) MTs 1-5.
    (14) TOZ-35M (starter pistol).
    (15) Biathlon-7K.
    (b) Rifles.
    (1) BARS-4 Bolt Action carbine.

[[Page 24184]]

    (2) Biathlon target rifle, .22.
    (3) British Enfield rifle = SMCR.
    (4) CM2, .22 target rifle (also known as SM2, .22).
    (5) German model 98K = SMCR.
    (6) German model G41 = SMCR.
    (7) German model G43 = SMCR.
    (8) IZH-94.
    (9) LOS-7, bolt action.
    (10) MC-7-07.
    (11) MC-18-3.
    (12) MC-19-07.
    (13) MC-105-01.
    (14) MC-112-02.
    (15) MC-113-02.
    (16) MC-115-1.
    (17) MC-125/127.
    (18) MC-126.
    (19) MC-128.
    (20) Saiga.
    (21) Soviet Model 38 carbine = SMCR.
    (22) Soviet Model 44 carbine-SMCR.
    (23) Soviet Model 91/30 rifle = SMCR.
    (24) TOZ 18, .22 bolt action.
    (25) TOZ 55.
    (26) TOZ 78.
    (27) Ural Target, .22lr.
    (28) VEPR rifle.
    (29) Winchester Model 1895, Russian Model rifle = SMCR.
    (30) Sever--double barrel.
    (31) IZH18MH single barrel break action.
    (32) MP-251 over/under rifle.
    (33) MP-221 double barrel rifle.
    (34) MP-141K.
    (35) MP-161K.
    (36) MTs 116-1.
    (37) MTs 116M.
    (38) MTs 112-02.
    (39) MTs 115-1.
    (40) MTs 113-02.
    (41) MTs 105-01.
    (42) MTs 105-05.
    (43) MTs 7-17 combination gun.
    (44) MTs 7-12-07 rifle/shotgun.
    (45) MTs 7-07.
    (46) MTs 109-12-07 rifle.
    (47) MTs 109-07 rifle.
    (48) MTs 106-07 combination.
    (49) MTs 19-97.
    (50) MTs 19-09.
    (51) MTs 18-3M.
    (52) MTs 125.
    (53) MTs 126.
    (54) MTs 127.
    (55) Berkut-2.
    (56) Berkut-2M1.
    (57) Berkut-3.
    (58) Berkut-2-1.
    (59) Berkut-2M2.
    (60) Berkut-3-1.
    (61) Ots-25.
    (62) MTs 20-07.
    (63) LOS-7-1.
    (64) LOS-7-2.
    (65) LOS-9-1.
    (66) Sobol (Sable).
    (67) Rekord.
    (68) Bars-4-1.
    (69) Saiga.
    (70) Saiga-M.
    (71) Saiga-308.
    (72) Saiga-308-1.
    (72) Saiga-308-2.
    (74) Saiga-9.
    (75) Korshun.
    (76) Ural-5-1.
    (77) Ural 6-1.
    (78) Ural-6-2.
    (79) SM-2.
    (80) Biatlon-7-3.
    (81) Biatlon-7-4.
    (82) Rekord-1.
    (83) Rekord-2.
    (84) Rekord-CISM.
    (85) Rekord-1-308.
    (86) Rekord-2-308.
    (87) Rekord-1-308-CISM.
    (88) VEPR.
    (89) VEPR Super.
    (90) VEPR Pioner.
    (91) VEPR Safari.
    (92) TOZ 109.
    (93) KO 44-1.
    (94) TOZ 78-01.
    (95) KO 44.
    (96) TOZ 99.
    (97) TOZ 99-01.
    (98) TOZ 55-01 Zubr.
    (99) TOZ 55-2 Zubr.
    (100) TOZ 120 Zubr.
    (101) MTs 111.
    (102) MTs 109.
    (103) TOZ 122.
    (104) TOZ 125.
    (105) TOZ 28.
    (106) TOZ 300.

PART 742--CONTROL POLICY--CCL BASED CONTROLS

0
10. The authority citation for part 742 is revised 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, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Notice of August 15, 2017, 82 FR 39005 (August 16, 2017); Notice of 
November 6, 2017, 82 FR 51971 (November 8, 2017).

0
11. Section 742.6 is amended by revising the first and sixth sentences 
of paragraph (b)(1)(i) and adding a seventh sentence at the end of 
paragraph (b)(1)(i) to read as follows:


Sec.  742.6  Regional stability.

* * * * *
    (b) * * *
    (1) * * *
    (i) Applications for exports and reexports of ECCN 0A501, 0A505, 
0B501, 0B505, 0D501, 0A504, 0D505, 0E501, 0E504, and 0E505 items; 9x515 
items and ``600 series'' items and will be reviewed on a case-by-case 
basis to determine whether the transaction is contrary to the national 
security or foreign policy interests of the United States, including 
the foreign policy interest of promoting the observance of human rights 
throughout the world. * * * When destined to the People's Republic of 
China or a country listed in Country Group E:1 in supplement no. 1 to 
part 740 of the EAR, items classified under ECCN 0A501, 0A505, 0B501, 
0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 or any 9x515 ECCN will be 
subject to a policy of denial. In addition, applications for exports 
and reexports of ECCN 0A501, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 
0E504, and 0E505 items; when there is reason to believe the transaction 
involves criminal organizations, rebel groups, street gangs, or other 
similar groups or individuals, that may be disruptive to regional 
stability, including within individual countries, will be subject to a 
policy of denial.
* * * * *
0
12. Section 742.7 is amended by revising paragraphs (a)(1) through (4) 
and (c) to read as follows:


Sec.  742.7   Crime control and detection.

    (a) * * *
    (1) Crime control and detection instruments and equipment and 
related ``technology'' and ``software'' identified in the appropriate 
ECCNs on the CCL under CC Column 1 in the Country Chart column of the 
``License Requirements'' section. A license is required to countries 
listed in CC Column 1 (Supplement No. 1 to part 738 of the EAR). Items 
affected by this requirement are identified on the CCL under the 
following ECCNs: 0A502, 0A504, 0A505.b, 0A978, 0A979, 0E502, 0E505 
(``technology'' for ``development'' or for ``production'' of buckshot 
shotgun shells controlled under ECCN 0A505.b), 1A984, 1A985, 3A980, 
3A981, 3D980, 3E980, 4A003 (for fingerprint computers only), 4A980, 
4D001 (for fingerprint computers only), 4D980, 4E001 (for fingerprint 
computers only), 4E980, 6A002 (for police-model infrared viewers only), 
6E001 (for police-model infrared viewers only), 6E002 (for police-model 
infrared viewers only), and 9A980.
    (2) Shotguns with a barrel length greater than or equal to 24 
inches, identified in ECCN 0A502 on the CCL under CC Column 2 in the 
Country Chart column of the ``License

[[Page 24185]]

Requirements'' section regardless of end-user to countries listed in CC 
Column 2 (Supplement No. 1 to part 738 of the EAR).
    (3) Shotguns with barrel length greater than or equal to 24 inches, 
identified in ECCN 0A502 on the CCL under CC Column 3 in the Country 
Chart column of the ``License Requirements'' section only if for sale 
or resale to police or law enforcement entities in countries listed in 
CC Column 3 (Supplement No. 1 to part 738 of the EAR).
    (4) Certain crime control items require a license to all 
destinations, except Canada. These items are identified under ECCNs 
0A982, 0A503, and 0E982. Controls for these items appear in each ECCN; 
a column specific to these controls does not appear in the Country 
Chart (Supplement No. 1 to part 738 of the EAR).
* * * * *
    (c) Contract sanctity. Contract sanctity date: August 22, 2000. 
Contract sanctity applies only to items controlled under ECCNs 0A982, 
0A503 and 0E982 destined for countries not listed in CC Column 1 of the 
Country Chart (Supplement No. 1 to part 738 of the EAR).
* * * * *
0
13. Section 742.17 is amended by:
0
a. Revising the first sentence of paragraph (a); and
0
b. Revising paragraph (f) to read as follows:


Sec.  742.17   Exports of firearms to OAS member countries.

    (a) License requirements. BIS maintains a licensing system for the 
export of firearms and related items to all OAS member countries. * * *
* * * * *
    (f) Items/Commodities. Items requiring a license under this section 
are ECCNs 0A501 (except 0A501.y), 0A502, 0A504 (except 0A504.f), and 
0A505 (except 0A505.d). (See Supplement No. 1 to part 774 of the EAR).
* * * * *


Sec.  742.19  [AMENDED]

0
14. Section 742.19(a)(1) is amended by:
0
a. Removing ``0A986'' and adding in its place ``0A505.c''; and
0
b. Removing ``0B986'' and adding in its place ``0B505.c''.

PART 743--SPECIAL REPORTING AND NOTIFICATION

0
15. The authority citation for 15 CFR 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 15, 
2017, 82 FR 39005 (August 16, 2017).
0
16. Section 743.4 is amended by adding paragraphs (c)(1)(i) and 
(c)(2)(i) and revising paragraph (h) to read as follows:


Sec.  743.4   Conventional arms reporting.

* * * * *
    (c) * * *
    (1) * * *
    (i) ECCN 0A501.a and .b.
* * * * *
    (2) * * *
    (i) ECCN 0A501.a and .b.
* * * * *
    (h) Contacts. General information concerning the Wassenaar 
Arrangement and reporting obligations thereof is available from the 
Office of National Security and Technology Transfer Controls, Tel. 
(202) 482-0092, Fax: (202) 482-4094. Information concerning the 
reporting requirements for items identified in paragraphs (c)(1) and 
(2) of this section is available from the Office of Nonproliferation 
and Treaty Compliance (NPTC), Tel. (202) 482-4188, Fax: (202) 482-4145.

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

0
17. The authority citation for 15 CFR 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. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of August 15, 2017, 82 FR 39005 
(August 16, 2017); Notice of September 18, 2017, 82 FR 43825 
(September 19, 2017); Notice of November 6, 2017, 82 FR 51971 
(November 8, 2017); Notice of January 17, 2018, 83 FR 2731 (January 
18, 2018).


Sec.  744.9  [AMENDED]

0
18. Section 744.9 is amended by removing ``0A987'' from paragraphs 
(a)(1) and (b) and adding in its place ``0A504''.

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

0
19. The authority citation for 15 CFR part 746 is revised to read as 
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Presidential Determination 2007-7, 72 FR 1899, 3 CFR, 2006 Comp., p. 
325; Notice of May 9, 2017, 82 FR 21909 (May 10, 2017); Notice of 
August 15, 2017, 82 FR 39005 (August 16, 2017).


Sec.  746.3   [AMENDED]

0
20. Section 746.3 is amended by removing ``0A986'' from paragraph 
(b)(2) and adding in its place ``0A505.c''.


Sec.  746.7  [AMENDED]

0
21. Section 746.7 is amended in paragraph (a)(1) by:
0
a. Adding ``0A503'' immediately before ``0A980''; and
0
b. Removing ``0A985''.

PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND 
DOCUMENTATION

0
22. The authority citation for 15 CFR 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 15, 2017, 82 FR 
39005 (August 16, 2017).

0
23. Section 748.12 is amended by:
0
a. Revising the heading;
0
b. Adding introductory text;
0
c. Revising paragraphs (a) introductory text and (a)(1);
0
d. Redesignating the note to paragraph (c)(8) as note 1 to paragraph 
(c)(8); and
0
e. Adding paragraph (e).
    The revisions and additions read as follows.


Sec.  748.12  Firearms import certificate or import permit.

    License applications for certain firearms and related commodities 
require support documents in accordance with this section. For 
destinations that are members of the Organization of American States 
(OAS), an FC Import Certificate or equivalent official document is 
required in accordance with paragraphs (a) through (d) of this section. 
For other destinations that require a firearms import or permit, the 
firearms import certificate or permit is required in accordance with 
paragraphs (e) through (g) of this section.
    (a) Requirement to obtain document for OAS member states. Unless an 
exception in Sec.  748.9(c) applies, an FC Import Certificate is 
required for license applications for firearms and related commodities, 
regardless of value, that

[[Page 24186]]

are destined for member countries of the OAS. This requirement is 
consistent with the OAS Model Regulations described in Sec.  742.17 of 
the EAR.
    (1) Items subject to requirement. Firearms and related commodities 
are those commodities controlled for ``FC Column 1'' reasons under 
ECCNs 0A501 (except 0A501.y), 0A502, 0A504 (except 0A504.f) or 0A505 
(except 0A505.d).
* * * * *
    (e) Requirement to obtain an import certificate or permit for other 
than OAS member states. If the country to which firearms, parts, 
components, accessories, and attachments controlled under ECCN 0A501, 
or ammunition controlled under ECCN 0A505, are being exported or 
reexported requires that a government-issued certificate or permit be 
obtained prior to importing the commodity, the exporter or reexporter 
must obtain and retain on file the original or a copy of that 
certificate or permit before applying for an export or reexport license 
unless:
    (1) A license is not required for the export or reexport; or
    (2) The exporter is required to obtain an import or end-user 
certificate or other equivalent official document pursuant to 
paragraphs (a) thorough (d) of this section and has, in fact, complied 
with that requirement.
    (3)(i) The number or other identifying information of the import 
certificate or permit must be stated on the license application.
    (ii) If the country to which the commodities are being exported 
does not require an import certificate or permit for firearms imports, 
that fact must be noted on any license application for ECCN 0A501 or 
0A505 commodities.

    Note 2 to paragraph (e).
    Obtaining a BIS Statement by Ultimate Consignee and Purchaser 
pursuant to Sec.  748.11 of the EAR does not exempt the exporter or 
reexporter from the requirement to obtain a certification pursuant 
to paragraph (a) of this section because that statement is not 
issued by a government.

PART 758--EXPORT CLEARANCE REQUIREMENTS

0
24. The authority citation for part 758 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 15, 
2017, 82 FR 39005 (August 16, 2017).

0
25. Section 758.1 is amended as follows:
0
a. By revising paragraphs (b)(7), (8) and (9) and adding paragraph 
(b)(10);
0
b. By revising paragraph (c)(1); and
0
c. By adding paragraph (g)(4) to read as follows:


Sec.  758.1   The Electronic Export Enforcement (EEI) filing to the 
Automated Export System (AES).

* * * * *
    (b) * * *
    (7) For all items exported under authorization Validated End-User 
(VEU);
    (8) For all exports of tangible items subject to the EAR where 
parties to the transaction, as described in Sec.  748.5(d) through (f) 
of the EAR, are listed on the Unverified List (Supplement No. 6 to part 
744 of the EAR), regardless of value or destination;
    (9) For items that fall under ECCNs that list CC Column 1 and 3 and 
RS Column 2 (see Supplement No. 1 to part 738 of the EAR) as reasons 
for control and such items are for export, regardless of value, to 
India; or
    (10) For all exports of items controlled under ECCNs 0A501.a or .b, 
shotguns with a barrel length less than 18 inches controlled under ECCN 
0A502, or ammunition controlled under ECCN 0A505 except for .c, 
regardless of value or destination, including exports to Canada.
    (c) * * *
    (1) License Exception Baggage (BAG), except for exports of items 
controlled under ECCNs 0A501.a or .b, shotguns with a barrel length 
less than 18 inches controlled under ECCN 0A502, or ammunition 
controlled under ECCN 0A505, as set forth in Sec.  740.14 of the EAR. 
See 15 CFR 30.37(x) of the FTR;
* * * * *
    (g) * * *
    (4) Exports of Firearms and Related Items. For any export of items 
controlled under ECCNs 0A501.a or .b, or shotguns with a barrel length 
less than 18 inches controlled under ECCN 0A502, in addition to any 
other required data for the associated EEI filing, you must report the 
manufacturer, model number, caliber and serial number of the exported 
items.
* * * * *
0
26. Add Sec.  758.10 to read as follows:


Sec.  758.10   Entry clearance requirements for temporary imports.

    (a) Scope. This section specifies the temporary import entry 
clearance requirements for firearms ``subject to the EAR'' that are on 
the United States Munitions Import List (USMIL, 27 CFR 447.21). These 
firearms are controlled in ECCN 0A501.a or .b or shotguns with a barrel 
length less than 18 inches controlled in ECCN 0A502. Items that are 
temporarily exported under the EAR for permanent return to the United 
States are outside of the scope of this section because the items are 
not considered temporary imports, but these items must have met the 
export clearance requirements specified in Sec.  758.1 of the EAR. See 
paragraph (a)(2) of this section for permanent import requirements.
    (1) An authorization under the EAR is not required for the 
temporary import of ``items'' that are ``subject to the EAR,'' 
including for ``items'' ``subject to the EAR'' that are on the USMIL. 
Temporary imports of firearms described in this section must meet the 
entry clearance requirements specified in paragraph (b) of this 
section.
    (2) Permanent imports are regulated by the Attorney General under 
the direction of the Department of Justice's Bureau of Alcohol, 
Tobacco, Firearms and Explosives (see 27 CFR parts 447, 478, 479, and 
555).
    (b) EAR procedures for temporary imports and subsequent exports. To 
the satisfaction of the Port Directors of U.S. Customs and Border 
Protection, the temporary importer must comply with the following 
procedures:
    (1) At the time of entry into the U.S. of the temporary import:
    (i) Provide the following statement to U.S. Customs and Border 
Protection: ``This shipment is being temporarily imported in accordance 
with the EAR. This shipment will be exported in accordance with and 
under the authority of License Exception TMP (15 CFR 740.9(b)(5));''
    (ii) Provide to U.S. Customs and Border Protection an invoice or 
other appropriate import-related documentation (or electronic 
equivalents) that includes a complete list and description of the 
firearms being temporarily imported, including their model, make, 
caliber, serial numbers, quantity, and U.S. dollar value; and
    (iii) Provide (if temporarily imported for a trade show, 
exhibition, demonstration, or testing) to U.S. Customs and Border 
Protection the relevant invitation or registration documentation for 
the event and an accompanying letter that details the arrangements to 
maintain effective control of the firearms while they are in the United 
States.

    Note 1 to paragraph (b)(1):
    In accordance with the exclusions in License Exception TMP under 
Sec.  740.9(b)(5) of the EAR, the entry clearance requirements in 
Sec.  758.1(b)(10) do not permit the temporary import of firearms 
controlled in ECCN 0A501.a or .b that are shipped from or 
manufactured in a Country Group D:5 country; or that are shipped 
from or manufactured in Russia, Georgia, Kazakhstan, Kyrgyzstan, 
Moldova,

[[Page 24187]]

Turkmenistan, Ukraine, or Uzbekistan, (except for any firearm model 
controlled by proposed 0A501 that is specified under Annex A in 
Supplement No. 4 to part 740, or shotguns with a barrel length less 
than 18 inches controlled in ECCN 0A502 that are shipped from or 
manufactured in a Country Group D:5 country, or from Russia, 
Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, or 
Uzbekistan, because of the exclusions in License Exception TMP under 
Sec.  740.9(b)(5).

    (2) At the time of export, in accordance with the U.S. Customs and 
Border Protection procedures, the eligible exporter, or an agent acting 
on the filer's behalf, must as required under Sec.  758.1(b)(10) of the 
EAR file the export information with CBP by filing EEI in AES, noting 
the applicable EAR authorization as the authority for the export, and 
provide as requested by CBP, the entry document number or a copy of the 
CBP document under which the ``item'' subject to the EAR'' on the USMIL 
was temporarily imported. See also the additional requirements 
inspection in Sec.  758.1(g)(4).

PART 762--RECORDKEEPING

0
27. The authority citation for part 762 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 15, 
2017, 82 FR 39005 (August 16, 2017).

0
28. Section 762.2 is amended by removing ``; and,'' at the end of 
paragraph (a)(10), redesignating paragraph (a)(11) as paragraph 
(a)(12), and adding a new paragraph (a)(11) to read as follows:


Sec.  762.2   Records to be retained.

    (a) * * *
    (11) The serial number, make, model, and caliber for any firearm 
controlled in ECCN 0A501.a and for shotguns with barrel length less 
than 18 inches controlled in 0A502 that have been exported. The 
``exporter'' or any other party to the transaction (see Sec.  758.3 of 
the EAR), that creates or receives such records is a person responsible 
for retaining this record; and
* * * * *
0
29. Section 762.3 is amended by revising paragraph (a)(5) to read as 
follows:


Sec.  762.3   Records exempt from recordkeeping requirements.

    (a) * * *
    (5) Warranty certificate, except for a warranty certificate issued 
for an address located outside the United States for any firearm 
controlled in ECCN 0A501.a and for shotguns with barrel length less 
than 18 inches controlled in 0A502;
* * * * *

PART 772--DEFINITIONS OF TERMS

0
30. The authority citation for part 772 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 15, 
2017, 82 FR 39005 (August 16, 2017).


Sec.  772.1  [AMENDED]

0
31. In Sec.  772.1, in the definition of ``specially designed,'' Note 1 
is amended by removing ``0B986'' and adding in its place ``0B505.c''.

PART 774--THE COMMERCE CONTROL LIST

0
32. The authority citation for 15 CFR 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; 42 U.S.C. 2139a; 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 15, 2017, 82 FR 39005 (August 
16, 2017).

0
33. In Supplement No. 1 to part 774, Category 0, revise Export Control 
Classification Number (ECCN) 0A018 to read as follows:

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

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

License Requirements

Reason for Control: NS, AT, UN

 
                                              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
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $3,000 for 0A018.b, $1,500 for 0A018.c and .d
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: (1) See also 0A979, 0A988, and 22 CFR 121.1 
Categories I(a), III(b-d), and X(a). (2) See ECCN 0A617.y.1 and .y.2 
for items formerly controlled by ECCN 0A018.a. (3) See ECCN 1A613.c 
for military helmets providing less than NIJ Type IV protection and 
ECCN 1A613.y.1 for conventional military steel helmets that, 
immediately prior to July 1, 2014 were classified under 0A018.d and 
0A988. (4) See 22 CFR 121.1 Category X(a)(5) and (a)(6) for controls 
on other military helmets.
Related Definitions: N/A
Items:

    a. [RESERVED]
    b. ``Specially designed'' components and parts for ammunition, 
except cartridge cases, powder bags, bullets, jackets, cores, 
shells, projectiles, boosters, fuses and components, primers, and 
other detonating devices and ammunition belting and linking machines 
(all of which are ``subject to the ITAR''). (See 22 CFR parts 120 
through 130);

    Note to 0A018.b:
    0A018.b does not apply to ``components'' ``specially designed'' 
for blank or dummy ammunition as follows:
    a. Ammunition crimped without a projectile (blank star);
    b. Dummy ammunition with a pierced powder chamber;
    c. Other blank and dummy ammunition, not incorporating 
components designed for live ammunition.

    c. [RESERVED]
    d. [RESERVED]

0
34. In Supplement No. 1 to part 774, Category, add, between entries for 
ECCNs 0A018 and 0A521, entries for ECCNs 0A501, 0A502, 0A503, 0A504, 
and 0A505 to read as follows:

0A501 Firearms (except 0A502 shotguns) and related commodities as 
follows (see List of Items controlled).

License Requirements

    Reason for Control: NS, RS, FC, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry except 0A501.y.  NS Column 1
RS applies to entire entry except 0A501.y.  RS Column 1
FC applies to entire entry except 0A501.y.  FC Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $500 for 0A501.c, .d, and .x, $500 for 0A501.c, .d, .e, and .x 
if the ultimate destination is Canada.
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in this entry.

[[Page 24188]]

List of Items Controlled

Related Controls: (1) Firearms that are fully automatic, and 
magazines with a capacity of 50 rounds or greater, are ``subject to 
the ITAR.'' (2) See ECCN 0A502 for shotguns and their ``parts'' and 
``components'' that are subject to the EAR. (3) See ECCN 0A504 and 
USML Category XII for controls on optical sighting devices.
Related Definitions: N/A
Items:

    a. Non-automatic and semi-automatic firearms of caliber less 
than or equal to .50 inches (12.7 mm).
    b. Non-automatic and non-semi-automatic rifles, carbines, 
revolvers or pistols with a caliber greater than .50 inches (12.7 
mm) but less than or equal to .72 inches (18.0 mm).
    c. The following types of ``parts'' and ``components'' if 
``specially designed'' for a commodity controlled by paragraph .a or 
.b of this entry, or USML Category I (unless listed in USML Category 
I(g) or (h)): Barrels, cylinders, barrel extensions, mounting blocks 
(trunnions), bolts, bolt carriers, operating rods, gas pistons, 
trigger housings, triggers, hammers, sears, disconnectors, pistol 
grips that contain fire control ``parts'' or ``components'' (e.g., 
triggers, hammers, sears, disconnectors) and buttstocks that contain 
fire control ``parts'' or ``components.''
    d. Detachable magazines with a capacity of greater than 16 
rounds ``specially designed'' for a commodity controlled by 
paragraph .a or .b of this entry.
    e. Receivers (frames) and complete breech mechanisms, including 
castings, forgings or stampings thereof, ``specially designed'' for 
a commodity by controlled by paragraph .a or .b of this entry.
    f. through w. [Reserved]
    x. ``Parts'' and ``components'' that are ``specially designed'' 
for a commodity classified under paragraphs .a through .c of this 
entry or the USML and not elsewhere specified on the USML or CCL.
    y. Specific ``parts,'' ``components,'' ``accessories'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN or common to a defense article in USML Category 
I and not elsewhere specified in the USML or CCL.
    y.1. Stocks or grips, that do not contain any fire control 
``parts'' or ``components'' (e.g., triggers, hammers, sears, 
disconnectors);''
    y.2. Scope mounts or accessory rails;
    y.3. Iron sights;
    y.4. Sling swivels;
    y.5. Butt plates or recoil pads; and
    y.6. Bayonets.

    Technical Note 1 to 0A501:
    The controls on ``parts'' and ``components'' in ECCN 0A501 
include those ``parts'' and ``components'' that are common to 
firearms described in ECCN 0A501 and to those firearms ``subject to 
the ITAR.''


    Note 1 to 0A501:
    Antique firearms (i.e., those manufactured before 1890) and 
reproductions thereof, muzzle loading black powder firearms except 
those designs based on centerfire weapons of a post 1937 design, BB 
guns, pellet rifles, paint ball, and all other air rifles are EAR99 
commodities.

0A502 Shotguns; complete trigger mechanisms; magazines and magazine 
extension tubes; complete breech mechanisms; except equipment used 
exclusively to treat or tranquilize animals, and except arms 
designed solely for signal, flare, or saluting use.

License Requirements

    Reason for Control: RS, CC, FC, UN, AT, NS

 
                                              Country chart  (see supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to shotguns with a barrel        NS Column 1
 length less than 18 inches (45.72 cm).
RS applies to shotguns with a barrel        RS Column 1
 length less than 18 inches (45.72 cm).
FC applies to entire entry................  FC Column 1
CC applies to shotguns with a barrel        CC Column 1
 length less than 24 in. (60.96 cm) and
 shotgun ``components'' controlled by this
 entry regardless of end user.
CC applies to shotguns with a barrel        CC Column 2
 length greater than or equal to 24 in.
(60.96 cm), regardless of end user........
CC applies to shotguns with a barrel        CC Column 3
 length greater than or equal to 24 in.
(60.96 cm) if for sale or resale to police
 or law enforcement.
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
AT applies to shotguns with a barrel        AT Column 1
 length less than 18 inches (45.72 cm).
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: This entry does not control combat shotguns and 
fully automatic shotguns. Those shotguns are ``subject to the 
ITAR.''
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

0A503 Discharge type arms; non-lethal or less-lethal grenades and 
projectiles, and ``specially designed'' ``parts'' and ``components'' 
of those projectiles; and devices to administer electric shock, for 
example, stun guns, shock batons, shock shields, electric cattle 
prods, immobilization guns and projectiles; except equipment used 
exclusively to treat or tranquilize animals, and except arms 
designed solely for signal, flare, or saluting use; and ``specially 
designed'' ``parts'' and ``components,'' n.e.s.

License Requirements

Reason for Control: CC, UN

 
                                              Country chart  (see supp.
                Control(s)                       No. 1  to part 738)
 
CC applies to entire entry................  A license is required for
                                             ALL destinations, except
                                             Canada, regardless of end
                                             use. Accordingly, a column
                                             specific to this control
                                             does not appear on the
                                             Commerce Country Chart.
                                             (See part 742 of the EAR
                                             for additional information)
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
 

List Based License Exceptions (See Part 740 For a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: Law enforcement restraint devices that administer 
an electric shock are controlled under ECCN 0A982. Electronic 
devices that monitor and report a person's location to enforce 
restrictions on movement for law enforcement or penal reasons are 
controlled under ECCN 3A981.

Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

0A504 Optical sighting devices for firearms (including shotguns 
controlled by 0A502); and ``components'' as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: FC, RS, CC, UN

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
RS applies to paragraph .i................  RS Column 1
FC applies to paragraphs .a, .b, .c, d,     FC Column 1
 .e, .g and .i of this entry.
CC applies to entire entry................  CC Column 1
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A

[[Page 24189]]

CIV: N/A

List of Items Controlled

Related Controls: (1) See USML Category XII(c) for sighting devices 
using second generation image intensifier tubes having luminous 
sensitivity greater than 350 [mu]A/lm, or third generation or higher 
image intensifier tubes, that are ``subject to the ITAR.'' (2) See 
USML Category XII(b) for laser aiming or laser illumination systems 
``subject to the ITAR.'' (3) Section 744.9 of the EAR imposes a 
license requirement on certain commodities described in 0A504 if 
being exported, reexported, or transferred (in-country) for use by a 
military end-user or for incorporation into an item controlled by 
ECCN 0A919.
Related Definitions: N/A
Items:

    a. Telescopic sights.
    b. Holographic sights.
    c. Reflex or ``red dot'' sights.
    d. Reticle sights.
    e. Other sighting devices that contain optical elements.
    f. Laser aiming devices or laser illuminators ``specially 
designed'' for use on firearms, and having an operational wavelength 
exceeding 400 nm but not exceeding 710 nm.

    Note 1 to 0A504.f:
    0A504.f does not control laser boresighting devices that must be 
placed in the bore or chamber to provide a reference for aligning 
the firearms sights.

    g. Lenses, other optical elements and adjustment mechanisms for 
articles in paragraphs .a, .b, .c, .d, .e or .i.
    h. [Reserved]
    i. Riflescopes that were not ``subject to the EAR'' as of [DATE 
ONE DAY PRIOR TO THE EFFECTIVE DATE OF THE FINAL RULE] and are 
``specially designed'' for use in firearms that are ``subject to the 
ITAR.''

    Note 2 to paragraph i:
    For purpose of the application of ``specially designed'' for the 
riflescopes controlled under 0A504.i, paragraph (a)(1) of the 
definition of ``specially designed'' in Sec.  772.1 of the EAR is 
what is used to determine whether the riflescope is ``specially 
designed.''

0A505 Ammunition as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, CC, FC, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to 0A505.a and .x..............  NS Column 1
RS applies to 0A505.a and .x..............  RS Column 1
CC applies to 0A505.b.....................  CC Column 1
FC applies to entire entry except 0A505.d.  FC Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to 0A505.a, .d and .x..........  AT Column 1
AT applies to 0A505.c.....................  A license is required for
                                             items controlled by
                                             paragraph .c of this entry
                                             to North Korea for anti-
                                             terrorism reasons. The
                                             Commerce Country Chart is
                                             not designed to determine
                                             AT licensing requirements
                                             for this entry. See Sec.
                                             742.19 of the EAR for
                                             additional information
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $100 for items in 0A505.x
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0A505.

List of Items Controlled

Related Controls: (1) Ammunition for modern heavy weapons such as 
howitzers, artillery, cannon, mortars and recoilless rifles as well 
as inherently military ammunition types such as ammunition 
preassembled into links or belts, caseless ammunition, tracer 
ammunition, ammunition with a depleted uranium projectile or a 
projectile with a hardened tip or core and ammunition with an 
explosive projectile are ``subject to the ITAR.'' (2) Percussion 
caps, and lead balls and bullets, for use with muzzle-loading 
firearms are EAR99 items.
Related Definitions: N/A
Items:

    a. Ammunition for firearms controlled by ECCN 0A501 and not 
enumerated in paragraph .b, .c or .d of this entry or in USML 
Category III.
    b. Buckshot (No. 4 .24'' diameter and larger) shotgun shells.
    c. Shotgun shells (including less than lethal rounds) that do 
not contain buckshot; and ``specially designed'' ``parts'' and 
``components'' of shotgun shells.

    Note 1 to 0A505.c:
    Shotgun shells that contain only chemical irritants are 
controlled under ECCN 1A984.

    d. Blank ammunition for firearms controlled by ECCN 0A501 and 
not enumerated in USML Category III.
    e. through w. [Reserved]
    x. ``Parts'' and ``components'' that are ``specially designed'' 
for a commodity subject to control in this ECCN or a defense article 
in USML Category III and not elsewhere specified on the USML, the 
CCL or paragraph .d of this entry.

    Note 2 to 0A505.x:
    The controls on ``parts'' and ``components'' in this entry 
include Berdan and boxer primers, metallic cartridge cases, and 
standard metallic projectiles such as full metal jacket, lead core, 
and copper projectiles.


    Note 3 to 0A505.x:
    The controls on ``parts'' and ``components'' in this entry 
include those ``parts'' and ``components'' that are common to 
ammunition and ordnance described in this entry and to those 
enumerated in USML Category III.


0
35. In Supplement No. 1 to part 774, Category 0, add, between entries 
for ECCNs 0A521 and 0A604, an entry for ECCN 0A602 to read as follows:

0A602 Guns and Armament as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0A602.

List of Items Controlled

Related Controls: (1) Modern heavy weapons such as howitzers, 
artillery, cannon, mortars and recoilless rifles are ``subject to 
the ITAR.'' (2) See ECCN 0A919 for foreign-made ``military 
commodities'' that incorporate more than a de minimis amount of 
U.S.-origin ``600 series'' items.
Related Definitions: N/A
Items:
    a. Guns and armament manufactured between 1890 and 1919.
    b. Military flame throwers with an effective range less than 20 
meters.
    c. through w. [Reserved]
    x. ``Parts,'' and ``components,'' that are ``specially 
designed'' for a commodity subject to control in paragraphs .a or .b 
of this ECCN or a defense article in USML Category II and not 
elsewhere specified on the USML or the CCL.

    Note 1 to 0A602:
    ``Parts,'' ``components,'' ``accessories'' and ``attachments'' 
specified in USML subcategory II(j) are subject to the controls of 
that paragraph.


    Note 2 to 0A602:
    Black powder guns and armament manufactured in or prior to 1890 
and replicas thereof designed for use with black powder propellants 
designated EAR99.


[[Page 24190]]



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

0
36. In Supplement No. 1 to part 774, Category 0, remove ECCNs 0A918, 
0A984, 0A985, 0A986, and 0A987.
0
37. In Supplement No. 1 to part 774, Category 0, add, before the entry 
for ECCN 0B521, entries for ECCNs 0B501 and 0B505 to read as follows:

0B501 Test, inspection, and production ``equipment'' and related 
commodities for the ``development'' or ``production'' of commodities 
enumerated or otherwise described in ECCN 0A501 or USML Category I 
as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry except           NS Column 1
 equipment for ECCN 0A501.y.
RS applies to entire entry except           RS Column 1
 equipment for ECCN 0A501.y.
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $3,000
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used to ship any item in this entry.

List of Items Controlled

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

    a. Small arms chambering machines.
    b. Small arms deep hole drilling machines and drills therefor.
    c. Small arms rifling machines.
    d. Small arms spill boring machines.
    e. Dies, fixtures, and other tooling ``specially designed'' for 
the ``production'' of the items controlled in 0A501.a through .x. or 
USML Category I.

0B505 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development'' or 
``production'' of commodities enumerated or otherwise described in 
ECCN 0A505 or USML Category III, except equipment for the hand 
loading of cartridges and shotgun shells, as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to paragraphs .a and .x........  NS Column 1
RS applies to paragraphs .a and .x........  RS Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to paragraphs .a, .d and .x....  AT Column 1
AT applies to paragraph .c................  A license is required for
                                             export or reexport of these
                                             items to North Korea for
                                             anti-terrorism reasons
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $3,000
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0B505.

List of Items Controlled

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

    a. Tooling, templates, jigs, mandrels, molds, dies, fixtures, 
alignment mechanisms, and test equipment, not enumerated in USML 
Category III that are ``specially designed'' for the ``production'' 
of commodities controlled by ECCN 0A505.a or .x or USML Category 
III.
    b. Equipment ``specially designed'' for the ``production'' of 
commodities in ECCN 0A505.b.
    c. Equipment ``specially designed'' for the ``production'' of 
commodities in ECCN 0A505.c.
    d. Equipment ``specially designed'' for the ``production'' of 
commodities in ECCN 0A505.d.
    e. through .w [Reserved]
    x. ``Parts'' and ``components'' ``specially designed'' for a 
commodity subject to control in paragraph .a of this entry.

0
38. In Supplement No. 1 to part 774, Category 0, add, between entries 
for ECCNs 0B521 and 0B604, an entry for ECCN 0B602 to read as follows:

0B602 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development'' or 
``production'' of commodities enumerated or otherwise described in 
ECCN 0A602 or USML Category II as follows (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $3,000
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0B602.

List of Items Controlled

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

    a. The following commodities if ``specially designed'' for the 
``development'' or ``production'' of commodities enumerated in ECCN 
0A602.a or USML Category II:
    a.1. Gun barrel rifling and broaching machines and tools 
therefor;
    a.2. Gun barrel rifling machines;
    a.3. Gun barrel trepanning machines;
    a.4. Gun boring and turning machines;
    a.5. Gun honing machines of 6 feet (183 cm) stroke or more;
    a.6. Gun jump screw lathes;
    a.7. Gun rifling machines; and
    a. 8. Gun straightening presses.
    b. Jigs and fixtures and other metal-working implements or 
accessories of the kinds exclusively designed for use in the 
manufacture of items in ECCN 0A602 or USML Category II.
    c. Other tooling and equipment, ``specially designed'' for the 
``production'' of items in ECCN 0A602 or USML Category II.
    d. Test and evaluation equipment and test models, including 
diagnostic instrumentation and physical test models, ``specially 
designed'' for items in ECCN 0A602 or USML Category II.

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

0
39. In Supplement No. 1 to part 774, Category 0, remove ECCN 0B986.
0
40. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for ECCNs 0D001 and 0D521, entries for ECCNs 0D501 and 0D505 to 
read as follows:

0D501 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of commodities controlled 
by 0A501 or 0B501.

License Requirements

Reason for Control: NS, RS, UN, AT

[[Page 24191]]



 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry except           NS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.
RS applies to entire entry except           RS Column 1
 ``software'' for commodities in ECCN
 0A501.y or equipment in ECCN 0B501 for
 commodities in ECCN 0A501.y.
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``software'' in 0D501.

List of Items Controlled

Related Controls: ``Software'' required for and directly related to 
articles enumerated in USML Category I is ``subject to the ITAR'' 
(See 22 CFR 121.1, Category I).
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.

0D505 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of commodities controlled 
by 0A505 or 0B505.

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to ``software'' for commodities  NS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a .and .x.
RS applies to ``software'' for commodities  RS Column 1
 in ECCN 0A505.a and .x and equipment in
 ECCN 0B505.a and .x.
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to ``software'' for commodities  AT Column 1
 in ECCN 0A505.a, .d or .x and equipment
 in ECCN 0B505.a, .d or .x.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``software'' in 0D505.

List of Items Controlled

Related Controls: ``Software'' required for and directly related to 
articles enumerated in USML Category III is ``subject to the ITAR'' 
(See 22 CFR 121.1, Category III).
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.

0
41. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for ECCNs 0D521 and 0D604, an entry for ECCN 0D602 to read as 
follows:

0D602 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of commodities controlled 
by 0A602 or 0B602 as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0D602.

List of Items Controlled

Related Controls: (1) ``Software'' required for and directly related 
to articles enumerated in USML Category II is controlled under USML 
Category II(k). (2) See ECCN 0A919 for foreign-made ``military 
commodities'' that incorporate more than a de minimis amount of 
U.S.-origin ``600 series'' items.
Related Definitions: N/A
Items: ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCN 0A602 and ECCN 0B602.

0
42. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for ECCNs 0E018 and 0E521, entries for ECCNs 0E501, 0E502, 
0E504, and 0E505 to read as follows:

0E501 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, or 
overhaul of commodities controlled by 0A501 or 0B501 as follows (see 
List of Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used to ship any ``technology'' in ECCN 
0E501.

List of Items Controlled

Related Controls: Technical data required for and directly related 
to articles enumerated in USML Category I are ``subject to the 
ITAR.''
Related Definitions: N/A
Items:

    a. ``Technology'' ``required'' for the ``development,'' or 
``production'' of commodities controlled by ECCN 0A501 (other than 
0A501.y) or 0B501.
    b. ``Technology'' ``required'' for the operation, installation, 
maintenance, repair, or overhaul of commodities controlled by ECCN 
0A501 (other than 0A501.y) or 0B501.

0E502 ``Technology'' ``required'' for the ``development'' or 
``production,'' of commodities controlled by 0A502.

License Requirements

Reason for Control: CC, UN

 
                                              Country chart  (see Supp.
                 Controls                         No. 1  part 738)
 
CC applies to entire entry................  CC Column 1
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
 


[[Page 24192]]

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

0E504 ``Technology'' ``required'' for the ``development,'' or 
``production'' of commodities controlled by 0A504 that incorporate a 
focal plane array or image intensifier tube.

License Requirements

Reason for Control: RS, UN, AT

 
                                              Country chart  (see Supp.
                 Controls                         No. 1  part 738)
 
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.   746.1(b) of the
                                             EAR for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

0E505 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul or refurbishing of commodities controlled by 0A505.

License Requirements

Reason for Control: NS, RS, UN, CC, AT

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to ``technology'' for            NS Column 1
 ``development,'' ``production,''
 operation, installation, maintenance,
 repair, overhaul or refurbishing
 commodities in 0A505.a and .x; for
 equipment for those commodities in 0B505;
 and for ``software'' for that equipment
 and those commodities in 0D505.
RS applies to entire entry except           RS Column 1
 ``technology'' for ``development,''
 ``production,'' operation, installation,
 maintenance, repair, overhaul or
 refurbishing commodities in 0A505.a and
 .x; for equipment for those commodities
 in 0B505 and for ``software'' for those
 commodities and that equipment in 0D505.
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
CC applies to ``technology'' for the        CC Column 1
 ``development'' or ``production'' of
 commodities in 0A505.b.
AT applies to ``technology'' for            AT Column 1
 ``development,'' ``production,''
 operation, installation, maintenance,
 repair, overhaul or refurbishing
 commodities in 0A505.a, .d and .x.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``technology'' in 0E505.

List of Items Controlled

Related Controls: Technical data required for and directly related 
to articles enumerated in USML Category III are ``subject to the 
ITAR'' (See 22 CFR 121.1, Category III).
Related Definitions: N/A
Items: The list of items controlled is contained in this ECCN 
heading.

0
43. In Supplement No. 1 to part 774, Category 0, add, between the 
entries for ECCNs 0E521 and 0E604, an entry for ECCN 0E602:

0E602 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul or refurbishing of commodities controlled by 0A602 or 
0B602, or ``software'' controlled by 0D602 as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, UN, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
UN applies to entire entry................  See Sec.   746.1 of the EAR
                                             for UN controls
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 0E602.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category II are ``subject to the ITAR.''
Related Definitions: N/A
Items: ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, or 
overhaul of commodities controlled by ECCN 0A602 or 0B602, or 
``software'' controlled by ECCN 0D602.

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

0
44. In Supplement No. 1 to part 774, Category 0, remove ECCN 0E918.
0
45. In Supplement No. 1 to part 774, Category 0, revise ECCN 0E982 to 
read as follows.

0E982 ``Technology'' exclusively for the ``development'' or 
``production'' of equipment controlled by 0A982 or 0A503.

License Requirements

Reason for Control: CC

 
                               Control(s)
 
CC applies to ``technology'' for items controlled by 0A982 or 0A503. A
 license is required for ALL destinations, except Canada, regardless of
 end-use. Accordingly, a column specific to this control does not appear
 on the Commerce Country Chart. (See part 742 of the EAR for additional
 information.)
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

CIV: N/A
TSR: N/A

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

[[Page 24193]]

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

0
46. In Supplement No. 1 to part 774, Category 0, remove ECCNs 0E984 and 
0E987.
0
47. In Supplement No. 1 to part 774, Category 1, revise ECCN 1A984 to 
read as follows:

1A984 Chemical agents, including tear gas formulation containing 1 
percent or less of orthochlorobenzalmalononitrile (CS), or 1 percent 
or less of chloroacetophenone (CN), except in individual containers 
with a net weight of 20 grams or less; liquid pepper except when 
packaged in individual containers with a net weight of 3 ounces 
(85.05 grams) or less; smoke bombs; non-irritant smoke flares, 
canisters, grenades and charges; and other pyrotechnic articles 
(excluding shotgun shells, unless the shotgun shells contain only 
chemical irritants) having dual military and commercial use, and 
``parts'' and ``components'' ``specially designed'' therefor, n.e.s.

License Requirements

Reason for Control: CC

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

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

0
48. In Supplement No. 1 to part 774, Category 2, revise ECCN 2B004 to 
read as follows:

2B004 Hot ``isostatic presses'' having all of the characteristics 
described in the List of Items Controlled, and ``specially 
designed'' ``components'' and ``accessories'' therefor.

License Requirements

Reason for Control: NS, MT NP, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry................  NS Column 2
MT applies to entire entry................  MT Column 1
NP applies to entire entry, except          NP Column 1
 2B004.b.3 and presses with maximum
 working pressures below 69 MPa.
AT applies to entire entry................  AT Column 1
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Related Controls: (1) See ECCN 2D001 for software for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) For ``specially designed'' dies, 
molds and tooling, see ECCNs 1B003, 0B501, 0B602, 0B606, 9B004, and 
9B009. (4) For additional controls on dies, molds and tooling, see 
ECCNs 1B101.d, 2B104 and 2B204. (5) Also see ECCNs 2B117 and 
2B999.a.
Related Definitions: N/A
Items:

    a. A controlled thermal environment within the closed cavity and 
possessing a chamber cavity with an inside diameter of 406 mm or 
more; and
    b. Having any of the following:
    b.1. A maximum working pressure exceeding 207 MPa;
    b.2. A controlled thermal environment exceeding 1,773 K (1,500 
[deg]C); or
    b.3. A facility for hydrocarbon impregnation and removal of 
resultant gaseous degradation products.


    Technical Note:
     The inside chamber dimension is that of the chamber in which 
both the working temperature and the working pressure are achieved 
and does not include fixtures. That dimension will be the smaller of 
either the inside diameter of the pressure chamber or the inside 
diameter of the insulated furnace chamber, depending on which of the 
two chambers is located inside the other.

0
49. In Supplement No. 1 to part 774, Category 2, revise ECCN 2B018 to 
read as follows:

2B018 Equipment on the Wassenaar Arrangement Munitions List.

    No commodities currently are controlled by this entry. 
Commodities formerly controlled by paragraphs .a through .d, .m and 
.s of this entry are controlled in ECCN 0B606. Commodities formerly 
controlled by paragraphs .e through .l of this entry are controlled 
by ECCN 0B602. Commodities formerly controlled by paragraphs .o 
through .r of this entry are controlled by ECCN 0B501. Commodities 
formerly controlled by paragraph .n of this entry are controlled in 
ECCN 0B501 if they are ``specially designed'' for the ``production'' 
of the items controlled in ECCN 0A501.a through .x or USML Category 
I and controlled in ECCN 0B602 if they are of the kind exclusively 
designed for use in the manufacture of items in ECCN 0A602 or USML 
Category II.

0
50. In Supplement No. 1 to part 774, Category 2, revise ECCN 2D018 to 
read as follows:

2D018 ``Software'' for the ``development,'' ``production,'' or 
``use'' of equipment controlled by 2B018.

    No software is currently controlled under this entry. See ECCNs 
0D501, 0D602 and 0D606 for software formerly controlled under this 
entry.

0
51. In Supplement No. 1 to part 774, Category 2, revise ECCN 2E001 to 
read as follows:

2E001 ``Technology'' according to the General Technology Note for 
the ``development'' of equipment or ``software'' controlled by 2A 
(except 2A983, 2A984, 2A991, or 2A994), 2B (except 2B991, 2B993, 
2B996, 2B997, 2B998, or 2B999), or 2D (except 2D983, 2D984, 2D991, 
2D992, or 2D994).

License Requirements

Reason for Control: NS, MT, NP, CB, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to ``technology'' for items      NS Column 1
 controlled by 2A001, 2B001 to 2B009,
 2D001 or 2D002.
MT applies to ``technology'' for items      MT Column 1
 controlled by 2B004, 2B009, 2B104, 2B105,
 2B109, 2B116, 2B117, 2B119 to 2B122,
 2D001, or 2D101 for MT reasons.
NP applies to ``technology'' for items      NP Column 1
 controlled by 2A225, 2A226, 2B001, 2B004,
 2B006, 2B007, 2B009, 2B104, 2B109, 2B116,
 2B201, 2B204, 2B206, 2B207, 2B209, 2B225
 to 2B233, 2D001, 2D002, 2D101, 2D201 or
 2D202 for NP reasons.
NP applies to ``technology'' for items      NP Column 2
 controlled by 2A290, 2A291, or 2D290 for
 NP reasons.

[[Page 24194]]

 
CB applies to ``technology'' for equipment  CB Column 2
 controlled by 2B350 to 2B352, valves
 controlled by 2A226 having the
 characteristics of those controlled by
 2B350.g, and software controlled by 2D351.
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)

CIV: N/A
TSR: Yes, except N/A for MT

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'' of ``software'' specified in the License Exception 
STA paragraph in the License Exception section of ECCN 2D001 or for 
the ``development'' of equipment as follows: ECCN 2B001 entire 
entry; or ``Numerically controlled'' or manual machine tools as 
specified in 2B003 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

Related Controls: See also 2E101, 2E201, and 2E301
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

    Note:  ECCN 2E001 includes ``technology'' for the integration of 
probe systems into coordinate measurement machines specified by 
2B006.a.


0
52. In Supplement No. 1 to part 774, Category 2, revise ECCN 2E002 to 
read as follows:

2E002 ``Technology'' according to the General Technology Note for 
the ``production'' of equipment controlled by 2A (except 2A983, 
2A984, 2A991, or 2A994), or 2B (except 2B991, 2B993, 2B996, 2B997, 
2B998, or 2B999).

License Requirements

Reason for Control: NS, MT, NP, CB, AT

 
                                               Country chart (see Supp. No. 1 to part
                                                        738)
 
NS applies to ``technology'' for equipment  NS Column 1
 controlled by 2A001, 2B001 to 2B009.
MT applies to ``technology'' for equipment  MT Column 1
 controlled by 2B004, 2B009, 2B104, 2B105,
 2B109, 2B116, 2B117, or 2B119 to 2B122
 for MT reasons.
NP applies to ``technology'' for equipment  NP Column 1
 controlled by 2A225, 2A226, 2B001, 2B004,
 2B006, 2B007, 2B009, 2B104, 2B109, 2B116,
 2B201, 2B204, 2B206, 2B207, 2B209, 2B225
 to 2B233 for NP reasons.
NP applies to ``technology'' for equipment  NP Column 2
 controlled by 2A290 or 2A291 for NP
 reasons.
CB applies to ``technology'' for equipment  CB Column 2
 controlled by 2B350 to 2B352 and for
 valves controlled by 2A226 having the
 characteristics of those controlled by
 2B350.g.
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)

CIV: N/A
TSR: Yes, except N/A for MT

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 
``production'' of equipment as follows: ECCN 2B001 entire entry; or 
``Numerically controlled'' or manual machine tools as specified in 
2B003 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

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

0
53. In Supplement No. 1 to part 774, Category 7, revise ECCN 7A611 to 
read as follows:

7A611 Military fire control, laser, imaging, and guidance equipment, 
as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738).
 
NS applies to entire entry except 7A611.y.  NS Column 1
MT applies to commodities in 7A611.a that   MT Column 1
 meet or exceed the parameters in 7A103.b
 or .c.
RS applies to entire entry except 7A611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7A611.y.  See Sec.   746.1(b) of the
                                             EAR for UN controls
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $1,500
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 7A611.

List of Items Controlled

Related Controls: (1) Military fire control, laser, imaging, and 
guidance equipment that are enumerated in USML Category XII, and 
technical data (including software) directly related thereto, are 
subject to the ITAR. (2) See Related Controls in ECCNs 0A504, 2A984, 
6A002, 6A003, 6A004, 6A005, 6A007, 6A008, 6A107, 7A001, 7A002, 
7A003, 7A005, 7A101, 7A102, and 7A103. (3) See ECCN 3A611 and USML 
Category XI for controls on countermeasure equipment. (4) See ECCN 
0A919 for foreign-made ``military commodities'' that incorporate 
more than a de minimis amount of U.S. origin ``600 series'' 
controlled content.
Related Definitions: N/A
Items:

    a. Guidance or navigation systems, not elsewhere specified on 
the USML, that are ``specially designed'' for a defense article on 
the USML or for a 600 series item.
    b. to w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments,'' including accelerometers, gyros, angular rate 
sensors, gravity meters (gravimeters), and inertial measurement 
units (IMUs), that are ``specially designed'' for defense articles 
controlled by USML Category XII or items controlled by 7A611, and 
that are NOT:
    1. Enumerated or controlled in the USML or elsewhere within ECCN 
7A611;
    2. Described in ECCNs 6A007, 6A107, 7A001, 7A002, 7A003, 7A101, 
7A102 or 7A103; or

[[Page 24195]]

    3. Elsewhere specified in ECCN 7A611.y or 3A611.y.
    y. Specific ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN or a defense article in Category XII and not 
elsewhere specified on the USML or in the CCL, as follows, and 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
``specially designed'' therefor:
    y.1 [RESERVED]

    Dated: May 4, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-10367 Filed 5-21-18; 8:45 am]
 BILLING CODE 3510-33-P


