[Federal Register Volume 83, Number 29 (Monday, February 12, 2018)]
[Proposed Rules]
[Pages 5968-5970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02496]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 170721692-8078-01]
RIN 0694-XC037


Request for Public Comments Regarding Controls on Energetic 
Materials, Armored and Protective ``Equipment'' and Military 
Electronics

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Notice of Inquiry; request for comments.

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SUMMARY: The Bureau of Industry and Security (BIS), Department of 
Commerce, is seeking public comments to perform a complementary review 
of items on the Commerce Control List concurrent with the Department of 
State's review of the controls implemented in its recent revisions of 
parts of the United States Munitions List (which control explosives and 
energetic materials, propellants, incendiary agents and their 
constituents; personal protective equipment; and military electronics), 
to ensure that the descriptions of these items on the CCL are clear, 
items for normal commercial use are not inadvertently controlled as 
military items on the USML, technological developments are accounted 
for on the control lists, and controls properly implement the national 
security and foreign policy objectives of the United States. This 
Notice of Inquiry also furthers the regulatory reform agenda directed 
by the President in Executive Order 13777.

DATES: Comments must be received by BIS no later than April 13, 2018.

ADDRESSES: Comments may be submitted through the Federal rulemaking 
portal (http://www.regulations.gov). The regulations.gov ID number for 
this rule is BIS-2018-0004. All comments (including any personally 
identifying information) will be made available for public inspection 
and copying.

FOR FURTHER INFORMATION CONTACT: 
    For technical questions relating to the item. For questions 
regarding energetic materials (ECCNs 1B608, 1C608, 1D608 and 1E608) or 
personal protective equipment, shelters and related items (ECCNs 1A613, 
1B613, 1D613 and 1E613), contact Joseph Giunta in the Office of 
National Security and Technology Transfer Controls, Electronics and 
Materials Division at (202) 482-3127 or [email protected]. For 
questions relating to

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military electronics (ECCNs 3A611, 3B611, 3D611 and 3E611), contact 
Brian Baker, Director, Electronics and Materials Division, Office of 
National Security and Technology Transfer Controls at (202) 482-5534 or 
[email protected]. For questions relating to cryogenic and 
superconducting equipment (ECCNs 9A620, 9B620, 9D620 and 9E620), 
contact Michael Tu in the Office of National Security and Technology 
Transfer Controls, Sensors and Aviation Division at (202) 482-6462 or 
[email protected].
    For licensing questions related to the item. For general questions 
regarding license applications for ``600 series'' ECCNs, contact Thomas 
DeFee or Christopher Williams in the Office of Strategic Industries and 
Economic Security, Munitions Control Division, at (202) 482-4506 or at 
[email protected] or [email protected]. For ``600 
series'' licenses regarding energetic materials (ECCNs 1B608, 1C608, 
1D608 and 1E608) or personal protective equipment, shelters and related 
items (ECCNs 1A613, 1B613, 1D613 and 1E613), contact Kylie Gaskins, 
Munitions Control Division at (202) 482-3064 or 
[email protected]. For ``600 series'' licenses relating to 
military electronics (ECCNs 3A611, 3B611, 3D611 and 3E611) and 
cryogenic and superconducting equipment (ECCNs 9A620, 9B620, 9D620 and 
9E620), contact Adam Duvall, Munitions Control Division at (202) 482-
6534 or [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The Bureau of Industry and Security (BIS), Department of Commerce, 
maintains the Export Administration Regulations, including the Commerce 
Control List (CCL). The items controlled under the ``600 series'' 
entries on the CCL were previously controlled on the United States 
Munitions List (USML), which is part of the International Traffic in 
Arms Regulations (ITAR), maintained by the Department of State. These 
items, including energetic materials, armored and protective 
``equipment'' and military electronics, were determined by the 
President to not warrant control on the USML.
    Through this Notice of Inquiry (NOI), BIS is seeking public 
comments to perform a complementary review of energetic materials, 
armored and protective ``equipment'' and military electronics and 
related items therefor, on the CCL, concurrent with the Department of 
State's review of the controls implemented in its recent revisions to 
Categories V, X and XI of the USML (which control explosives and 
energetic materials, propellants, incendiary agents and their 
constituents, personal protective equipment, and military electronics), 
to ensure that the descriptions of these items on the CCL are clear, 
items for normal commercial use are not inadvertently controlled as 
military items on the USML, technological developments are accounted 
for on the control lists, and controls properly implement the national 
security and foreign policy objectives of the United States.
    Specifically, BIS is soliciting comments on the clarity, usability 
and any other matters related to implementation of the ``600 series'' 
Export Control Classification Numbers (ECCNs) that control the 
following items, as well as certain items related thereto: energetic 
materials (ECCNs 1B608, 1C608, 1D608 and 1E608); armored and protective 
``equipment'' (ECCNs 1A613, 1B613, 1D613, 1E613); military electronics 
(ECCNs 3A611, 3B611, 3D611 and 3E611); and cryogenic and 
superconducting equipment (ECCNs 9A620, 9B620, 9D620 and 9E620).
    A core element of the transfer of certain articles on the USML to 
``600 series'' ECCNs on the CCL has been the streamlining of categories 
on the USML, resulting in the control on the CCL of items that the 
President determines do not warrant USML control. On December 10, 2010, 
the Department of State provided notice to the public of its intent to 
revise the USML to create a more ``positive list'' that describes 
controlled items using, to the extent possible, objective criteria 
rather than broad, open-ended, subjective, or design intent-based 
criteria (see 75 FR 76935). As a practical matter, this meant revising 
USML categories so that, with some exceptions, the descriptions of 
defense articles that continued to warrant control under the USML did 
not use catch-all phrases to control unspecified items. With limited 
exceptions, the defense articles that warranted control under the USML 
were those that provided the United States with a critical military or 
intelligence advantage. All other items were to become subject to the 
export licensing jurisdiction of the EAR. Since that time, the 
Department of State has published final rules setting forth revisions 
for eighteen USML categories, each of which has been reorganized into a 
uniform and more ``positive list'' structure. In coordination with the 
Department of State, the Department of Commerce has published final 
rules that made corresponding revisions to the CCL by controlling items 
that the President has determined do not warrant control on the USML.
    The advantage of revising the USML into a positive list is that its 
controls can be tailored to satisfy the national security and foreign 
policy objectives of the U.S. Government by maintaining control over 
those defense articles that provide a critical military or intelligence 
advantage, or otherwise warrant control under the ITAR, without 
inadvertently controlling items in normal commercial use. However, this 
approach requires that the USML and the CCL be regularly reviewed and 
updated to account for the following: technological developments; 
issues identified by exporters and reexporters involving the practical 
application of these controls; and changes in the military and 
commercial applications of items affected by the USML or by the 
corresponding ``600 series'' ECCNs on the CCL.
    Consistent with the approach described above, this NOI requests 
public comments as part of a review of changes to the EAR that 
complements a similar review the Department of State is performing with 
respect to the ITAR. As discussed above, the Departments of State and 
Commerce reviews are being undertaken to follow up on sets of rules 
published by the Departments of State and Commerce. These rules 
implemented revisions to the following categories of the USML: Category 
V (explosives and energetic materials, propellants, incendiary agents 
and their constituents), effective July 1, 2014 (see 79 FR 34); 
Category X (protective personnel equipment), effective July 1, 2014 
(see 79 FR 34); and Category XI (military electronics), effective 
December 30, 2014 (see 79 FR 37536). These rules also added the 
following ``600 series'' ECCNs to the CCL: ECCNs 1B608, 1C608, 1D608, 
1E608, 1A613, 1B613, 1D613 and 1E613, effective July 1, 2014 (see 79 FR 
264), and ECCNs 3A611, 3B611, 3D611, 3E611, 9A620, 9B620, 9D620 and 
9E620, effective December 30, 2014 (see 79 FR 37551). The Department of 
State is seeking comments from the public on the condition and efficacy 
of the revised Categories V, X, and XI and whether they are meeting the 
objectives for the list revisions. BIS will make any changes to the CCL 
that it determines are necessary to complement revisions to the USML by 
the Department of State. In addition, through this NOI, BIS is 
independently seeking comments on how to improve the implementation of 
these ``600 series'' ECCNs on the CCL.

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    BIS is also seeking comments on potential cost savings to private 
entities from shifting control of specific commercial items from USML 
to the CCL. To the extent possible, please quantify the cost of 
compliance with USML control of commercial items, to include the time 
saved, the reduction in paperwork, and any other cost savings for a 
particular change.

    Dated: January 31, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-02496 Filed 2-9-18; 8:45 am]
 BILLING CODE 3510-33-P


