[Federal Register Volume 85, Number 82 (Tuesday, April 28, 2020)]
[Rules and Regulations]
[Pages 23459-23470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07241]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 734, 738, 742, 744, 758, and 774

[Docket No. 180212164-9483-01]
RIN 0694-AH53


Expansion of Export, Reexport, and Transfer (in-Country) Controls 
for Military End Use or Military End Users in the People's Republic of 
China, Russia, or Venezuela

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) to expand license requirements 
on exports, reexports, and transfers (in-country) of items intended for 
military end use or military end users in the People's Republic of 
China (China), Russia, or Venezuela. Specifically, this rule expands 
the licensing requirements for China to include ``military end users,'' 
in addition to ``military end use.'' It broadens the list of items for 
which the licensing requirements and review policy apply and expands 
the definition of ``military end use.'' Next, it creates a

[[Page 23460]]

new reason for control and the associated review policy for regional 
stability for certain items exported to China, Russia, or Venezuela, 
moving existing text related to this policy. Finally, it adds 
Electronic Export Information filing requirements in the Automated 
Export System for exports to China, Russia, and Venezuela. This rule 
supports the objectives discussed in the National Security Strategy of 
the United States.

DATES: This rule is effective June 29, 2020.

FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of 
National Security and Technology Transfer Controls, Bureau of Industry 
and Security, Department of Commerce. Phone: (202) 482-0092; Fax: (202) 
482-3355; Email: rpd2@bis.doc.gov. For emails, include ``Military End 
Use or User'' in the subject line.

SUPPLEMENTARY INFORMATION: 

Background

    In December 2017, the White House issued the National Security 
Strategy of the United States of America (NSS), which states that ``The 
United States will respond to the growing political, economic, and 
military competitions we face around the world.'' The NSS, which can be 
found at www.whitehouse.gov, discusses four pillars--protect the 
homeland, promote American prosperity, preserve peace through strength, 
and advance American influence. The strategy notes that ``China and 
Russia challenge American power, influence, and interests, attempting 
to erode American security and prosperity. They are determined to make 
economies less free and less fair, to grow their militaries, and to 
control information and data to repress their societies and expand 
their influence.'' The NSS further notes, ``Both China and Russia 
support the dictatorship in Venezuela and are seeking to expand 
military linkages and arms sales across the region.''
    BIS is publishing this rule to support the national security and 
foreign policy objectives of the United States by broadening the United 
States government's visibility into and ability to deny or condition 
exports, reexports, and transfers (in-country) involving certain items 
on the Commerce Control List (CCL) (Supplement No. 1 to part 774 of the 
Export Administration Regulations) that are destined to military end 
users or end uses in China, Russia, or Venezuela.

Expansion of Military End Use and End User Controls

    End use (how will the product ultimately be used) and the end user 
(who will ultimately use the product) are important factors when 
determining license requirements. Examples of prohibited end use 
include restrictions on certain nuclear end uses, use of products in 
weapons of mass destruction, and use of microprocessors for military 
end use. For a full list of end-use and end-user prohibitions under the 
EAR, see Part 744 of the EAR. The EAR's current definition of military 
end users includes the army, navy, air force, marines and coast guard, 
plus the national guard/police, government intelligence and 
reconnaissance organizations; this rule does not modify that 
definition. The EAR's current definition of military end use refers 
both to direct use (for parts, components or subsystems of weapons and 
other defense articles) and indirect use (weapon design and 
development, testing, repair and maintenance). This rule broadens the 
definition of military end use beyond any item for the ``use,'' 
``development,'' or ``production'' to include any item that supports or 
contributes to the operation, installation, maintenance, repair, 
overhaul, refurbishing, ``development,'' or ``production,'' of military 
items.
    On June 19, 2007, BIS published a rule imposing a license 
requirement on exports, reexports, and transfers (in-country) of 
certain items intended for military end use in China (72 FR 33646), in 
large part due to a continued lack of transparency regarding products 
and technologies intended for military end use as China strengthened 
its military activities and capabilities. On September 17, 2014, BIS 
expanded these license requirements to include military end uses and 
end users in Russia (79 FR 55608), to address that country's continuing 
policy of destabilization in Ukraine and occupation of Crimea. On 
November 7, 2014, BIS expanded these license requirements to include 
military end uses and end users in Venezuela (79 FR 66288) as the 
actions and policies of the Venezuelan military, including its 
continued and increased repression and complicity in human rights 
violations, undermined democratic processes and institutions and 
thereby constituted an unusual and extraordinary threat to the national 
security and foreign policy of the United States.
    This rule further expands license requirements for exports, 
reexports, and transfers (in-country) of items intended for military 
end use or military end users in the People's Republic of China 
(China), Russia, or Venezuela by broadening the license requirement in 
Sec.  744.21 of the Export Administration Regulations (15 CFR parts 
730-774) (EAR) to include military end users in China. This expansion 
will require increased diligence with respect to the evaluation of end 
users in China, particularly in view of China's widespread civil-
military integration.
    In addition, this rule broadens the scope of the items subject to 
license requirements in Sec.  744.21 by adding items to the list of 
items subject to the military end-use and end-user license requirements 
in Supplement No. 2 to part 744. Specifically, this rule adds the 
following Export Control Classification Numbers (ECCNs) in the 
categories of materials processing, electronics, telecommunications, 
information security, sensors and lasers, and propulsion to the 
supplement: 2A290, 2A291, 2B999, 2D290, 3A991, 3A992, 3A999, 3B991, 
3B992, 3C992, 3D991, 5B991, 5A992, 5D992, 6A991, 6A996, and 9B990. 
Additionally, this rule expands the range of items under ECCNs 3A992, 
8A992, and 9A991 included in Supplement No. 2 to part 744.
    This rule adopts a license review policy of presumption of denial 
in Sec.  744.21(e). This change makes the review policy consistent with 
the review policy for certain exports, reexports, and transfers (in-
country) of microprocessors and associated software and technologies 
for military end uses and end users in Sec.  744.17(c). Further, this 
rule broadens the definition of ``military end use'' by identifying 
each element of the definition of ``use'' so that any one of the six 
elements, standing alone, is sufficient. As amended, the definition of 
``military end use'' in Sec.  744.21(f) will include any item that 
supports or contributes to the operation, installation, maintenance, 
repair, overhaul, refurbishing, ``development,'' or ``production,'' of 
military items described on the United States Munitions List 
(International Traffic in Arms Regulations (22 CFR 126.1)), or items 
classified under ECCNs ending in ``A018'' or under ``600 series'' 
ECCNs.

Clarification of Controls on ``600 series'' .y and 9x515.y Items

    Additionally, to help the public comply with EAR Sec.  744.21, this 
rule would relocate the existing license requirement for items 
described in a .y paragraph of a 9x515 or ``600 series'' ECCN to China, 
Russia, or Venezuela from Sec.  744.21 to the License Requirements 
sections of the relevant ECCNs on the CCL.

[[Page 23461]]

    The license requirement in Sec.  744.21 for ``600 series'' .y items 
was imposed in an April 16, 2013 rule that initially implemented ``600 
series'' controls (Revisions to the Export Administration Regulations: 
Initial Implementation of Export Control Reform, 78 FR 22660, at 22723) 
because such items were presumptively for military end use. The license 
requirement in Sec.  744.21 for 9x515.y items was imposed in a May 13, 
2014 rule that implemented CCL controls on certain spacecraft 
(Revisions to the Export Administration Regulations: Control of 
Spacecraft Systems and Related Items the President Determines No Longer 
Warrant Control Under the United States Munitions List (USML), 79 FR 
27418, at 27436), prohibiting the export of all items described in 
9A515.y to China. As noted previously, subsequent rules broadened the 
application of Sec.  744.21 to Russia and Venezuela. This relocation of 
the existing license requirement from EAR Sec.  744.21 to the CCL would 
not change its scope, which was intended to result in a license 
requirement for all 9x515.y or ``600 series'' .y items to those 
destinations. Although the rules imposing controls on ``600 series'' .y 
and 9x515.y items did not assign a ``reason for control'' as that term 
is used on the CCL, BIS believes such items should require a license in 
order to support U.S. foreign policy to maintain regional stability. 
Accordingly, the reason for control is regional stability (RS) as 
described in new EAR Sec.  742.6(a)(7). The associated review policy is 
described in new Sec.  742.6(b)(8). The license review policy reflects 
current regional stability policy for ``600'' series and 9x515 items. 
The addition of new Sec.  742.6(a)(7) would require redesignation of 
the following paragraphs in the section (as well as conforming 
changes): Sec. Sec.  732.3(b)(4), 734.3(c), 738.1(a)(3), and ECCNs 
0A521, 0B521, 0C521, 0D521, 0E521, 9A515, and 9E515.

Expansion of Electronic Export Information Filing Requirements

    Finally, this rule expands Electronic Export Information (EEI) 
filing requirements in the Automated Export System (AES) for exports to 
China, Russia, or Venezuela. Existing provisions exempt exporters from 
both filing EEI for many shipments valued under $2,500 (unless an 
export license is required) and from entering the ECCN in the EEI when 
the reason for control is only anti-terrorism (AT). To promote 
transparency with respect to shipments to these destinations, this rule 
revises Sec.  758.1 of the EAR to require filing for items destined to 
China, Russia, or Venezuela regardless of the value of the shipment, 
unless the shipment is eligible for License Exception GOV. In addition, 
even if no license is required to ship an item to those destinations, 
the EEI filing must include the correct ECCN regardless of reason for 
control. Certain exemptions from filing found in both the EAR and 
Foreign Trade Regulations (see Sec.  758.1(c) of the EAR), such as for 
personally-owned baggage, are retained in this rule.

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852) that provides the legal basis for BIS's principal authorities and 
serves as the authority under which BIS issues this rule. As set forth 
in Section 1768 of ECRA, all delegations, rules, regulations, orders, 
determinations, licenses, or other forms of administrative action that 
have been made, issued, conducted, or allowed to become effective under 
the Export Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as in 
effect prior to August 13, 2018 and as continued in effect pursuant to 
the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) and 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 14, 
2019, 84 FR 41881 (August 15, 2019)), or the Export Administration 
Regulations, and are in effect as of August 13, 2018, shall continue in 
effect according to their terms until modified, superseded, set aside, 
or revoked under the authority of ECRA.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This final rule has been designated a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) of Executive Order 12866.
    2. This final rule is not subject to the requirements of Executive 
Order 13771 (82 FR 9339, February 3, 2017) because it is issued with 
respect to a national security function of the United States. As 
discussed in the background section, this rule supports the objectives 
laid out in the National Security Strategy of the United States of 
America (NSS) by broadening the United States government's visibility 
into transactions involving certain items on the CCL and exports, 
reexports and transfers (in-country) to military end users or end uses 
in China, Russia, or Venezuela. Specifically, the expansion of controls 
would enhance the national security of the United States by reducing 
the risk that exports, reexports, and transfers (in-country) of items 
subject to the EAR could contribute to the military capability of 
China, Russia, or Venezuela contrary to U.S. national security 
interests. It allows the United States government to review 
transactions involving military end uses or end users in those 
destinations prior to their completion to mitigate this risk. 
Therefore, the cost-benefit analysis required pursuant to Executive 
Orders 13563 and 12866 indicates this rule is intended to improve 
national security as its primary direct benefit. Accordingly, this rule 
meets the requirements set forth in the April 5, 2017, OMB guidance 
implementing Executive Order 13771 (82 FR 9339, February 3, 2017), 
regarding what constitutes a regulation issued ``with respect to a 
national security function of the United States'' and it is, therefore, 
exempt from the requirements of Executive Order 13771.
    3. 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 Office of 
Management and Budget (OMB) Control Number. This regulation involves a 
collection currently approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System. This collection 
includes, among other things, license applications, and carries a 
burden estimate of 42.5 minutes for a manual or electronic submission 
for a total burden estimate of 31,878 hours. BIS receives very few 
license applications for military end uses in China or for military end 
uses or end users in Russia or Venezuela (approximately two to three 
annually). BIS believes that the reason for this small number is the

[[Page 23462]]

likelihood that that such applications will be denied. BIS anticipates 
that broadening the range of items and parties subject to these 
military end-use and end-user license requirements will increase the 
number of licenses submitted; however, BIS also believes that, due to 
continuing likelihood of denials, this increase is not expected to 
exceed the existing estimates currently associated with OMB control 
number 0694-0088.
    Any comments regarding the collection of information associated 
with this rule, including suggestions for reducing the burden, may be 
sent to Jasmeet K. Seehra, Office of Management and Budget (OMB), by 
email to Jasmeet_K._Seehra@omb.eop.gov, or by fax to (202) 395-7285.
    4. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    5. Pursuant to Sec.  1762 of ECRA, this action is exempt from the 
Administrative Procedure Act (5 U.S.C. 553) requirements for notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date.
    6. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required and none 
has been prepared.

Saving Clause

    Shipments of items removed from license exception eligibility or 
eligibility for export, reexport or transfer (in-country) without a 
license as a result of this regulatory action that were on dock for 
loading, on lighter, laden aboard an exporting carrier, or en route 
aboard a carrier to a port of export, on June 29, 2020, pursuant to 
actual orders for exports, reexports and transfers (in-country) to a 
foreign destination, may proceed to that destination under the previous 
license exception eligibility or without a license so long as they have 
been exported, reexported or transferred (in-country) before July 27, 
2020. Any such items not actually exported, reexported or transferred 
(in-country) before midnight, on July 27, 2020 require a license in 
accordance with this final rule.

List of Subjects

15 CFR Parts 732 and 758

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

15 CFR Part 734

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

15 CFR Part 738

    Exports.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, 15 CFR chapter VII, 
subchapter C is amended as follows:

PART 732--STEPS FOR DETERMINING LICENSING REQUIREMENTS

0
1. The authority citation for part 732 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 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).


Sec.  732.3   [Amended]

0
2. In Sec.  732.3, in paragraph (b)(4), remove the reference to ``Sec.  
742.6(a)(7)'' and add in its place ``Sec.  742.6(a)(8)''.

PART 734--SCOPE OF THE EAR

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

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of November 12, 2019, 84 FR 61817 (November 13, 
2019).


Sec.  734.3   [Amended]

0
4. In Sec.  734.3, in paragraph (c), remove the reference to ``Sec.  
742.6(a)(7)'' and add in its place ``Sec.  742.6(a)(8)''.

PART 738--COMMERCE CONTROL LIST AND THE COUNTRY CHART

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

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 
42 U.S.C. 2139a; 15 U.S.C. 1824; 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.


Sec.  738.1   [Amended]

0
6. In Sec.  738.1, in paragraph (a)(3), remove the reference to ``Sec.  
742.6(a)(7)'' and add in its place ``Sec.  742.6(a)(8)''.

PART 742--CONTROL POLICY--CCL BASED CONTROLS

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

    Authority:  50 U.S.C. 4801-4852; 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 November 12, 2019, 84 FR 61817 (November 
13, 2019).


0
8. In Sec.  742.6:
0
a. Revise paragraph (a)(1);
0
b. Redesignate paragraphs (a)(7) and (8) as paragraphs (a)(8) and (9) 
and add new paragraph (a)(7);
0
c. Revise newly redesignated paragraph (a)(8)(i);
0
d. Revise paragraph(b)(1)(i); and
0
e. Add paragraph (b)(8).
    The revisions and additions read as follows:


Sec.  742.6   Regional stability.

    (a) * * *
    (1) RS Column 1 license requirements in general. A license is 
required for exports and reexports to all destinations, except Canada, 
for all items in ECCNs on the CCL that include RS Column 1 in the 
Country Chart column of the ``License Requirements'' section. 
Transactions described in paragraph (a)(2), (3), or (9) of this section 
are subject to the RS Column 1 license requirements set forth in those 
paragraphs rather than the license requirements set forth in this 
paragraph (a)(1).
* * * * *
    (7) RS requirement that applies to the People's Republic of China 
(China), Russia, or Venezuela. A license is required to export or 
reexport to China, Russia, or Venezuela any item described in a .y 
paragraph of a 9x515 or ``600 series'' ECCN, except for exports or

[[Page 23463]]

reexports to Russia for use in, with, or for the International Space 
Station (ISS), including launch to the ISS. (See Sec.  740.11(e)(1) of 
the EAR for a definition of the ISS.)
    (8) * * *
    (i) Scope. This paragraph (a)(8) supplements the information in the 
0Y521 ECCNs and in Supplement No. 5 to part 774 (Items Classified Under 
ECCNs 0A521, 0B521, 0C521, 0D521 and 0E521). This paragraph alerts 
exporters, reexporters and transferors to the procedures that apply to 
items classified under the 0Y521 ECCNs.
* * * * *
    (b) * * *
    (1) * * *
    (i) Applications for exports and reexports of ECCN 0A501, 0A504, 
0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E504, and 0E505 items; 9x515 
and ``600 series'' items 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. Other applications for exports and reexports described in 
paragraph (a)(1), (2), (6), or (8) of this section will be reviewed on 
a case-by-case basis to determine whether the export or reexport could 
contribute directly or indirectly to any country's military 
capabilities in a manner that would alter or destabilize a region's 
military balance contrary to the foreign policy interests of the United 
States. Applications for reexports of items described in paragraph 
(a)(3) of this section will be reviewed applying the policies for 
similar commodities that are subject to the ITAR. Applications for 
export or reexport of items classified under any 9x515 or ``600 
series'' ECCN requiring a license in accordance with paragraph (a)(1) 
or (9) of this section will also be reviewed consistent with United 
States arms embargo policies in Sec.  126.1 of the ITAR (22 CFR 126.1) 
if destined to a country set forth in Country Group D:5 in Supplement 
No. 1 to part 740 of the EAR. Applications for export or reexport of 
``parts,'' ``components,'' ``accessories,'' ``attachments,'' 
``software,'' or ``technology'' ``specially designed'' or otherwise 
required for the F-14 aircraft will generally be denied. When destined 
to 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.
* * * * *
    (8) China, Russia, or Venezuela. Applications to export or reexport 
items described in paragraph (a)(7) of this section to China, Russia, 
or Venezuela 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. Such applications will also be reviewed consistent with United 
States arms embargo policies in Sec.  126.1 of the ITAR (22 CFR 126.1) 
if destined to a country set forth in Country Group D:5 in Supplement 
No. 1 to part 740 of the EAR. When destined to China, items classified 
under any 9x515.y ECCN will be subject to a policy of denial consistent 
with paragraph (b)(1) of this section.
* * * * *

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

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

    Authority:  50 U.S.C. 4801-4852; 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. 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 September 19, 2019, 83 FR 49633 (September 20, 2019); Notice of 
November 12, 2019, 84 FR 61817 (November 13, 2019).


0
10. In Sec.  744.1, revise the last two sentences of paragraph (a)(1) 
to read as follows:


Sec.  744.1   General provisions.

    (a)(1) * * * Section 744.21 imposes restrictions for exports, 
reexports and transfers (in-country) of items on the CCL for a 
`military end use' or `military end user' in the People's Republic of 
China (PRC or China), Russia, or Venezuela. Section 744.22 imposes 
restrictions on exports, reexports and transfers to persons whose 
property and interests in property are blocked pursuant to Executive 
Orders 13310, 13448, or 13464.
* * * * *

0
11. Section 744.21 is revised to read as follows:


Sec.  744.21   Restrictions on certain `military end use' or `military 
end user' in the People's Republic of China, Russia, or Venezuela.

    (a) General prohibition. In addition to the license requirements 
for items specified on the Commerce Control List (CCL), you may not 
export, reexport, or transfer (in-country) any item subject to the EAR 
listed in Supplement No. 2 to part 744 to the People's Republic of 
China (China), Russia, or Venezuela without a license if, at the time 
of the export, reexport, or transfer (in-country), you have 
``knowledge,'' as defined in Sec.  772.1 of the EAR, that the item is 
intended, entirely or in part, for a `military end use,' as defined in 
paragraph (f) of this section, or `military end user,' as defined in 
paragraph (g) of this section, in China, Russia, or Venezuela.
    (b) Additional prohibition on those informed by BIS. BIS may inform 
you either individually by specific notice, through amendment to the 
EAR published in the Federal Register, or through a separate notice 
published in the Federal Register, that a license is required for 
specific exports, reexports, or transfers (in-country) of any item 
because there is an unacceptable risk of use in or diversion to a 
`military end use' or `military end user' in China, Russia, or 
Venezuela. Specific notice will be given only by, or at the direction 
of, the Deputy Assistant Secretary for Export Administration. When such 
notice is provided orally, it will be followed by written notice within 
two working days signed by the Deputy Assistant Secretary for Export 
Administration or the Deputy Assistant Secretary's designee. The 
absence of BIS notification does not excuse the exporter from 
compliance with the license requirements of paragraph (a) of this 
section.
    (c) License exception. Despite the prohibitions described in 
paragraphs (a) and (b) of this section, you may export, reexport, or 
transfer (in-country) items subject to the EAR under the provisions of 
License Exception GOV set forth in Sec.  740.11(b)(2)(i) and (ii) of 
the EAR.
    (d) License application procedure. When submitting a license 
application pursuant to this section, you must state in the 
``additional information'' block of the application that ``this 
application is submitted because of the license

[[Page 23464]]

requirement in Sec.  744.21 of the EAR (Restrictions on a `Military End 
Use' or `Military End User' in the People's Republic of China, Russia, 
or Venezuela).'' In addition, either in the additional information 
block of the application or in an attachment to the application, you 
must include all known information concerning the `military end use' 
and `military end user(s)' of the item(s). If you submit an attachment 
with your license application, you must reference the attachment in the 
``additional information'' block of the application.
    (e) License review standards. (1) Applications to export, reexport, 
or transfer (in-country) items described in paragraph (a) of this 
section will be reviewed with a presumption of denial.
    (2) Applications may be reviewed under chemical and biological 
weapons, nuclear nonproliferation, or missile technology review 
policies, as set forth in Sec. Sec.  742.2(b)(4), 742.3(b)(4), and 
742.5(b)(4) of the EAR, if the end use may involve certain 
proliferation activities.
    (3) Applications for items requiring a license for any reason that 
are destined to China, Russia, or Venezuela for a `military end use' or 
`military end user' also will be subject to the review policy stated in 
paragraph (e)(1) of this section.
    (f) Military end use. In this section, `military end use' means: 
incorporation into a military item described on the U.S. Munitions List 
(USML) (22 CFR part 121, International Traffic in Arms Regulations); 
incorporation into items classified under ECCNs ending in ``A018'' or 
under ``600 series'' ECCNs; or any item that supports or contributes to 
the operation, installation, maintenance, repair, overhaul, 
refurbishing, ``development,'' or ``production,'' of military items 
described on the USML, or items classified under ECCNs ending in 
``A018'' or under ``600 series'' ECCNs.
    (g) Military end user. In this section, the term `military end 
user' means the national armed services (army, navy, marine, air force, 
or coast guard), as well as the national guard and national police, 
government intelligence or reconnaissance organizations, or any person 
or entity whose actions or functions are intended to support `military 
end uses' as defined in paragraph (f) of this section.
    (h) Effects on contracts. Venezuela: Transactions involving the 
export, reexport, or transfer (in country) of items to or within 
Venezuela are not subject to the provisions of Sec.  744.21 if the 
contracts for such transactions were signed prior to November 7, 2014.

0
12. Supplement No. 2 to part 744 is revised to read as follows:

Supplement No. 2 to Part 744--List of Items Subject to the Military End 
Use or End User License Requirement of Sec.  744.21

    The following items, as described, are subject to the military 
end use or end user license requirement in Sec.  744.21.
    (1) Category 1 Materials, Chemicals, Microorganisms, and Toxins
    (i) 1A290 Depleted uranium (any uranium containing less than 
0.711% of the isotope U 235) in shipments of more than 1,000 
kilograms in the form of shielding contained in X ray units, 
radiographic exposure or teletherapy devices, radioactive 
thermoelectric generators, or packaging for the transportation of 
radioactive materials.
    (ii) 1C990 Fibrous and filamentary materials, not controlled by 
1C010 or 1C210, for use in ``composite'' structures and with a 
specific modulus of 3.18x10\6\m or greater and a specific tensile 
strength of 7.62x10\4\m or greater.
    (iii) 1C996 Hydraulic fluids containing synthetic hydrocarbon 
oils, having all the characteristics in the List of Items 
Controlled.
    (iv) 1D993 ``Software'' specially designed for the 
``development'', ``production'', or ``use'' of equipment or 
materials controlled by 1C210.b, or 1C990.
    (v) 1D999 Limited to specific software controlled by 1D999.b for 
equipment controlled by 1B999.e that is specially designed for the 
production of prepregs controlled in Category 1, n.e.s.
    (vi) 1E994 Limited to ``technology'' for the ``development'', 
``production'', or ``use'' of fibrous and filamentary materials 
other than glass, aramid or polyethylene controlled by 1C990.
    (2) Category 2 Materials Processing
    (i) 2A290 Generators and other equipment ``specially designed,'' 
prepared, or intended for use with nuclear plants.
    (ii) 2A291 Equipment, except items controlled by 2A290, related 
to nuclear material handling and processing and to nuclear reactors, 
and ``parts,'' ``components'' and ``accessories'' therefor (see List 
of Items Controlled).
    (iii) 2A991 Limited to bearings and bearing systems not 
controlled by 2A001 and with operating temperatures above 573 K (300 
[deg]C).
    (iv) 2B991 Limited to ``numerically controlled'' machine tools 
having ``positioning accuracies'', with all compensations available, 
less (better) than 9 [mu]m along any linear axis; and machine tools 
controlled under 2B991.d.1.a.
    (v) 2B992 Non ``numerically controlled'' machine tools for 
generating optical quality surfaces, and specially designed 
components therefor.
    (vi) 2B996 Limited to dimensional inspection or measuring 
systems or equipment not controlled by 2B006 with measurement 
uncertainty equal to or less (better) than (1.7 + L/1000) 
micrometers in any axes (L measured Length in mm).
    (vii) 2B999 Specific processing equipment, n.e.s. (see List of 
Items Controlled).
    (viii) 2D290 ``Software'' ``specially designed'' or modified for 
the ``development,'' ``production,'' or ``use'' of items controlled 
by 2A290 or 2A291.
    (3) Category 3 Electronics Design, Development and Production
    (i) 3A991 Electronic devices, and ``components'' not controlled 
by 3A001.
    (ii) 3A992 General purpose electronic equipment not controlled 
by 3A002.
    (iii) 3A999 Specific processing equipment, n.e.s. (see List of 
Items Controlled).
    (iv) 3B991 Equipment not controlled by 3B001 for the manufacture 
of electronic ``parts,'' ``components'' and materials, and 
``specially designed'' ``parts,'' ``components'' and ``accessories'' 
therefor.
    (v) 3B992 Equipment not controlled by 3B002 for the inspection 
or testing of electronic ``components'' and materials, and 
``specially designed'' ``parts,'' ``components'' and ``accessories'' 
therefor.
    (vi) 3C992 Positive resists designed for semiconductor 
lithography specially adjusted (optimized) for use at wavelengths 
between 370 and 245 nm.
    (vii) 3D991 ``Software'' ``specially designed'' for the 
``development'', ``production'', or ``use'' of electronic devices, 
``parts'' or ``components'' controlled by 3A991, general purpose 
electronic equipment controlled by 3A992, or manufacturing and test 
equipment controlled by 3B991 and 3B992; or ``software'' ``specially 
designed'' for the ``use'' of equipment controlled by 3B001.g and 
.h.
    (viii) 3E991 Limited to ``technology'' according to the General 
Technology Note for the ``development'', ``production'', or ``use'' 
of digital oscilloscopes and transient recorders with sampling rates 
greater than 2.5 giga samples per second, which are controlled by 
3A992.g.
    (4) Category 4 Computers
    (i) 4A994 Limited to computers not controlled by 4A001 or 4A003, 
with an Adjusted Peak Performance (``APP'') exceeding 0.5 Weighted 
TeraFLOPS (WT).
    (ii) 4D993 ``Program'' proof and validation ``software'', 
``software'' allowing the automatic generation of ``source codes'', 
and operating system ``software'' that are specially designed for 
real time processing equipment.
    (iii) 4D994 Limited to ``software'' specially designed or 
modified for the ``development'', ``production'', or ``use'' of 
equipment controlled by 4A101.
    (5) Category 5 (Part 1) Telecommunications and Category 5 (Part 
2) Information Security
    (i) 5A991 Limited to telecommunications equipment designed to 
operate outside the temperature range from 219K (-54 [deg]C) to 397K 
(124 [deg]C), which is controlled by 5A991.a., radio equipment using 
Quadrature-amplitude-modulation (QAM) techniques, which is 
controlled by 5A991.b.7., and phased array antennae, operating above 
10.5 Ghz, except landing systems meeting ICAO standards (MLS), which 
are controlled by 5A991.f.
    (ii) 5B991 Telecommunications test equipment, n.e.s.
    (iii) 5D991 Limited to ``software'' specially designed or 
modified for the ``development'', ``production'', or ``use'' of 
equipment controlled by 5A991.a., 5A991.b.7., and 5A991.f., or of 
``software'' specially designed or modified for the ``development'', 
``production'', or ``use'' of equipment controlled by 5A991.a., 
5A991.b.7., and 5A991.f. (iv) 5E991 Limited to ``technology''

[[Page 23465]]

for the ``development'', ``production'' or ``use'' of equipment 
controlled by 5A991.a., 5A991.b.7., or 5A991.f., or of ``software'' 
specially designed or modified for the ``development'', 
``production'', or ``use'' of equipment controlled by 5A991.a., 
5A991.b.7., and 5A991.f.
    (v) 5A992 Equipment not controlled by 5A002 (see List of Items 
Controlled).
    (vi) 5D992 ``Information Security'' ``software'' not controlled 
by 5D002 (see List of Items Controlled).
    (6) Category 6 Sensors and Lasers
    (i) 6A991 Marine or terrestrial acoustic equipment, n.e.s., 
capable of detecting or locating underwater objects or features or 
positioning surface vessels or underwater vehicles; and ``specially 
designed'' ``parts'' and ``components,'' n.e.s.
    (ii) 6A993 Cameras, not controlled by 6A003 or 6A203 (see List 
of Items Controlled).
    (iii) 6A995 ``Lasers'', not controlled by 6A005 or 6A205.
    (iv) 6A996 ``Magnetometers'' not controlled by ECCN 6A006, 
``Superconductive'' electromagnetic sensors, and ``specially 
designed'' ``components'' therefor, as follows (see List of Items 
Controlled).
    (v) 6C992 Optical sensing fibers not controlled by 6A002.d.3 
which are modified structurally to have a ``beat length'' of less 
than 500 mm (high birefringence) or optical sensor materials not 
described in 6C002.b and having a zinc content of equal to or more 
than 6% by ``mole fraction.''
    (7) Category 7 Navigation and Avionics
    (i) 7A994 Other navigation direction finding equipment, airborne 
communication equipment, all aircraft inertial navigation systems 
not controlled under 7A003 or 7A103, and other avionic equipment, 
including parts and components, n.e.s.
    (ii) 7B994 Other equipment for the test, inspection, or 
``production'' of navigation and avionics equipment.
    (iii) 7D994 ``Software'', n.e.s., for the ``development'', 
``production'', or ``use'' of navigation, airborne communication and 
other avionics.
    (iv) 7E994 ``Technology'', n.e.s., for the ``development'', 
``production'', or ``use'' of navigation, airborne communication, 
and other avionics equipment.
    (8) Category 8 Marine
    (i) 8A992 Vessels, marine systems or equipment, not controlled 
by 8A001 or 8A002, and ``specially designed'' ``parts'' and 
``components'' therefor, and marine boilers and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' therefor (see 
List of Items Controlled).
    (ii) 8D992 ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment controlled 
by 8A992.
    (iii) 8E992 ``Technology'' for the ``development'', 
``production'' or ``use'' of equipment controlled by 8A992.
    (9) Category 9 Propulsion Systems, Space Vehicles and Related 
Equipment
    (i) 9A991 ``Aircraft'', n.e.s., and gas turbine engines not 
controlled by 9A001 or 9A101 and ``parts'' and ``components,'' 
n.e.s. (see List of Items Controlled).
    (ii) 9B990 Vibration test equipment and ``specially designed'' 
``parts'' and ``components,'' n.e.s.
    (iii) 9D991 ``Software'', for the ``development'' or 
``production'' of equipment controlled by 9A991 or 9B991.
    (iv) 9E991 ``Technology'', for the ``development'', 
``production'' or ``use'' of equipment controlled by 9A991 or 9B991.

PART 758--EXPORT CLEARANCE REQUIREMENTS

0
13. The authority citation for part 758 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 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.


0
14. In Sec.  758.1, add paragraph (b)(10) and revise paragraph (g)(3) 
to read as follows:


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

* * * * *
    (b) * * *
    (10) For all exports of items on the Commerce Control List to the 
People's Republic of China, Russia, or Venezuela, regardless of value, 
unless the export may be made under the exemption listed under 
paragraph (c)(4) of this section.
* * * * *
    (g) * * *
    (3) No License Required (NLR) exports. You must report on any 
required EEI filing to the AES the correct license code/license 
exception code when using the ``NLR'' designation for the items that 
are subject to the EAR but not listed on the Commerce Control List 
(CCL) (i.e., items are designated as EAR99) (FTR license code ``C33''), 
and when the items to be exported are listed on the CCL but are not 
subject to a license requirement. In addition, you must enter the 
correct ECCN on any required EEI filing for all items being exported 
under the NLR provisions that have a reason for control other than or 
in addition to anti-terrorism (AT), unless the items are destined to 
China, Russia, or Venezuela. For items destined to China, Russia, or 
Venezuela, you must enter the correct ECCN on any required EEI filing 
regardless of reason for control.
* * * * *

PART 774--THE COMMERCE CONTROL LIST

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

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(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. 1824; 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.

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

0
16. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 0, remove the reference to ``Sec.  742.6(a)(7)'' in ECCNs 
0A521, 0B521, 0C521, 0D521, and 0E521 and add in its place ``Sec.  
742.6(a)(8)''.

0
17. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 0, the License Requirements sections of ECCNs 0A606, 0A617, 
0D606, 0D617, 0E606, and 0E617 are revised to read as follows:

0A606 Ground vehicles and related commodities, as follows (see List 
of Items Controlled).XXXXXXXXX

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 0A606.b  NS Column 1
 and .y.
NS applies to 0A606.b.....................  NS Column 2
RS applies to entire entry, except 0A606.b  RS Column 1
 and .y.
RS applies to 0A606.b.....................  RS Column 2
RS applies to 0A606.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 0A606.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
0A617 Miscellaneous ``equipment,'' materials, and related 
commodities (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 0A617.y  NS Column 1
RS applies to entire entry, except 0A617.y  RS Column 1
RS applies to 0A617.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1

[[Page 23466]]

 
UN applies to entire......................  See Sec.   764.1(b) for UN
entry, except 0A617.y.....................   controls
 

* * * * *
0D606 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of ground vehicles and 
related commodities controlled by 0A606, 0B606, or 0C606 (see List 
of Items Controlled).

License Requirements

    Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 0D606.y  NS Column 1
RS applies to entire entry, except 0D606.y  RS Column 1
RS applies to 0D606.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 0D606.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
0D617 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by 0A617, ``equipment'' controlled by 0B617, or materials controlled 
by 0C617 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 0D617.y  NS Column 1
RS applies to entire entry, except 0D617.y  RS Column 1
RS applies to 0D617.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 0D617.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
0E606 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of ground vehicles and related commodities 
in 0A606, 0B606, 0C606, or software in 0D606 (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 0E606.y  NS Column 1
RS applies to entire entry, except 0E606.y  RS Column 1
RS applies to 0E606.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 0E606.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
0E617 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities controlled by ECCN 0A617, 
``equipment'' controlled by 0B617, or materials controlled by 0C617, 
or ``software'' controlled by ECCN 0D617 (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 0E617.y  NS Column 1
RS applies to entire entry, except 0E617.y  RS Column 1
RS applies to 0E617.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 0E617.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *


0
18. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1, the License Requirements sections of ECCNs 1A613, 1D613, 
and 1E613 are revised to read as follows:

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

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 1A613.y.  NS Column 1
RS applies to entire entry except 1A613.y.  RS Column 1
RS applies 1A613.y........................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 1A613.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
1D613 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by 1A613 or 1B613, as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 1D613.y.  NS Column 1
RS applies to entire entry except 1D613.y.  RS Column 1
RS applies to 1D613.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 1D613.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
1E613 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities controlled by 1A613 or 
1B613 or ``software'' controlled by 1D613, as follows (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 1E613.y.  NS Column 1
RS applies to entire entry except 1E613.y.  RS Column 1
RS applies to 1E613.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 1E613.y  See Sec.   746.1(b) for UN
                                             controls
 


[[Page 23467]]

* * * * *


0
19. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 3, the License Requirements sections of ECCNs 3A611, 3D611, 
and 3E611 are revised to read as follows:

3A611 Military electronics, as follows (see List of Items 
Controlled).
Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 3A611.y.  NS Column 1
RS applies to entire entry except 3A611.y.  RS Column 1
RS applies to 3A611.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 3A611.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
3D611 ``Software'' ``specially designed'' for military electronics, 
as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 3D611.y.  NS Column 1
RS applies to entire entry except 3D611.y.  RS Column 1
RS applies to 3D611.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 3D611.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
3E611 ``Technology'' ``required'' for military electronics, as 
follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 3E611.y.  NS Column 1
RS applies to entire entry except 3E611.y.  RS Column 1
RS applies to 3E611.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 3E611.y.  See Sec.   746.1(b) for UN
                                             controls
 


* * * * *

0
20. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 7, the License Requirements sections of ECCNs 7A611, 7D611, 
and 7E611 are revised 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
RS applies to 7A611.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7A611.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
7D611 ``Software'' ``specially designed'' for commodities controlled 
by 7A611 or equipment controlled by 7B611, 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 7D611.y.  NS Column 1
MT applies to 7D611.a ``software''          MT Column 1
 ``specially designed'' for 7A611.a
 commodities controlled for MT reasons.
RS applies to entire entry except 7D611.y.  RS Column 1
RS applies to 7D611.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7D611.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
7E611 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul or refurbishing of commodities controlled by 7A611, 
commodities controlled by 7B611, or software controlled by 7D611, 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 7E611.y.  NS Column 1
MT applies to ``technology'' in 7E611.a if  MT Column 1
 ``required'' for items controlled for MT
 reasons in 7A611.a, 7B611.a, or 7D611.a.
RS applies to entire entry except 7E611.y.  RS Column 1
RS applies to 7E611.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 7E611.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *

0
21. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 8, the License Requirements sections of ECCNs 8A609, 8A620, 
8D609, 8D620, 8E609, and 8E620 are revised to read as follows:

8A609 Surface vessels of war and related commodities (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 8A609.y  NS Column 1
RS applies to entire entry, except 8A609.y  RS Column 1

[[Page 23468]]

 
RS applies to 8A609.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 8A609.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
8A620 Submersible vessels, oceanographic and associated commodities 
(see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 8A620.   NS Column 1
 b and .y.
RS applies to entire entry, except 8A620.y  RS Column 1
RS applies to 8A620.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 8A620.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
8D609 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of commodities controlled 
by 8A609, 8B609, or 8C609 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 8D609.y  NS Column 1
RS applies to entire entry, except 8D609.y  RS Column 1
RS applies to 8D609.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 8D609.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
8D620 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by 8A620 or 8B620 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 8D620.b  NS Column 1
 and .y.
RS applies to entire entry, except 8D620.y  RS Column 1
RS applies to 8D620.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 8D620.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
8E609 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities controlled by 8A609, 8B609, 
or 8C609, or ``software'' controlled by 8D609 (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 8E609.y  NS Column 1
RS applies to entire entry, except 8E609.y  RS Column 1
RS applies to 8E609.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 8E609.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
8E620 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities controlled by 8A620 or 
8B620, or ``software'' controlled by 8D620 (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except 8E620.b  NS Column 1
 and .y.
RS applies to entire entry, except 8E620.y  RS Column 1
RS applies to 8E620.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry, except 8E620.y  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *

0
22. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 9, remove the reference to ``Sec.  742.6(a)(8)'' in the 
License Requirement Notes in ECCNs 9A515 and 9E515 and add in its place 
``Sec.  742.6(a)(9)''.

0
23. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 9, the License Requirements sections of ECCNs 9A515, 9D515, 
9E515, 9A610, 9A619, 9B619, 9D610, 9D619, 9E610, and 9E619 are revised 
to read as follows:

9A515 ``Spacecraft'' and related commodities, as follows (see List 
of Items Controlled).

License Requirements

Reason for Control: NS, RS, MT, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except .e and   NS Column 1
 .y.
RS applies to entire entry, except .e and   RS Column 1
 .y.
RS applies to 9A515.e.....................  RS Column 2
RS applies to 9A515.y, except to Russia     China, Russia, or Venezuela
 for use in, with, or for the                (see Sec.   742.6(a)(7))
 International Space Station (ISS),
 including launch to the ISS.
MT applies to microcircuits in 9A515.d and  MT Column 1
 9A515.e.2 when ``usable in'' ``missiles''
 for protecting ``missiles'' against
 nuclear effects (e.g., Electromagnetic
 Pulse (EMP), X-rays, combined blast and
 thermal effects). MT also applies to
 9A515.h when the total impulse capacity
 is equal to or greater than 8.41x10[and]5
 newton seconds.
AT applies to entire entry................  AT Column 1
 

* * * * *
* * * * *

[[Page 23469]]

9D515 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of ``spacecraft'' and related commodities, 
as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9D515.y.  NS Column 1
RS applies to entire entry except 9D515.y.  RS Column 1
RS applies to 9D515.y, except to Russia     China, Russia, or Venezuela
 for use in, with, or for the                (see Sec.   742.6(a)(7))
 International Space Station (ISS),
 including launch to the ISS.
AT applies to entire entry................  AT Column 1
 

* * * * *
9E515 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, repair, overhaul, or 
refurbishing of ``spacecraft'' and related commodities, as follows 
(see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9E515.y.  NS Column 1
MT applies to technology for items in       MT Column 1
 9A515.d, 9A515.e.2, and 9B515.a
 controlled for MT reasons.
RS applies to entire entry except 9E515.y.  RS Column 1
RS applies to 9E515.y, except to Russia     China, Russia, or Venezuela
 for use in, with, or for the                (see Sec.   742.6(a)(7))
 International Space Station (ISS),
 including launch to the ISS.
AT applies to entire entry................  AT Column 1
 

* * * * *
9A610 Military aircraft and related commodities, other than those 
enumerated in 9A991.a (see List of Items Controlled).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except:........  NS Column 1
9A610.b; parts and components controlled
 in 9A610.x if being exported or
 reexported for use in an aircraft
 controlled in 9A610.b; and 9A610.y.
RS applies to entire entry except:........  RS Column 1
9A610.b; parts and components controlled
 in 9A610.x if being exported or
 reexported for use in an aircraft
 controlled in 9A610.b; and 9A610.y.
RS applies to 9A610.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
MT applies to 9A610.t, .u, .v, and .w.....  MT Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 9A610.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
9A619 Military gas turbine engines and related commodities (see List 
of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9A619.y.  NS Column 1
RS applies to entire entry except 9A619.y.  RS Column 1
RS applies to 9A619.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 9A619.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
9B619 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development'' or 
``production'' of commodities enumerated or otherwise described in 
ECCN 9A619 or USML Category XIX (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9B619.y.  NS Column 1
RS applies to entire entry except 9B619.y.  RS Column 1
RS applies to 9B619.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 9B619.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
9D610 Software ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of military aircraft and 
related commodities controlled by 9A610, equipment controlled by 
9B610, or materials controlled by 9C610 (see List of Items 
Controlled).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9D610.y.  NS Column 1
MT applies to software ``specially          MT Column 1
 designed'' for the operation,
 installation, maintenance, repair,
 overhaul, or refurbishing of commodities
 controlled for MT reasons in 9A610 or
 9B610.
RS applies to entire entry except 9D610.y.  RS Column 1
RS applies to 9D610.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 9D610.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
9D619 Software ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of military gas turbine 
engines and related commodities controlled by 9A619, equipment 
controlled by 9B619, or materials controlled by 9C619 (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

[[Page 23470]]



 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9D619.y.  NS Column 1
RS applies to entire entry except 9D619.y.  RS Column 1
RS applies to 9D619.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 9D619.y.  See Sec.   746.1(b)
                                            for UN controls
 

* * * * *
9E610 Technology ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of military aircraft and related 
commodities controlled by 9A610, equipment controlled by 9B610, 
materials controlled by 9C610, or software controlled by 9D610 (see 
List of Items Controlled).

License Requirements

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

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9E610.y.  NS Column 1
RS applies to entire entry except 9E610.y.  RS Column 1
RS applies to 9E610.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
MT applies to ``technology'' ``required''   MT Column 1
 for the ``development,'' ``production,''
 operation, installation, maintenance,
 repair, overhaul, or refurbishing of
 commodities or software controlled for MT
 reasons in 9A610, 9B610, or 9D610 for MT
 reasons.
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 9E610.y.  See Sec.   746.1(b) for UN
                                             controls
 

* * * * *
9E619 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of military gas turbine engines and 
related commodities controlled by 9A619, equipment controlled by 
9B619, materials controlled by 9C619, or software controlled by 
9D619 (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9E619.y.  NS Column 1
RS applies to entire entry except 9E619.y.  RS Column 1
RS applies to 9E619.y.....................  China, Russia, or Venezuela
                                             (see Sec.   742.6(a)(7))
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 9E619.y.  See Sec.   746.1(b)
                                            for UN controls
 


Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2020-07241 Filed 4-27-20; 8:45 am]
 BILLING CODE 3510-33-P


