81_FR_75562 81 FR 75352 - Withholding of Unclassified Technical Data and Technology From Public Disclosure

81 FR 75352 - Withholding of Unclassified Technical Data and Technology From Public Disclosure

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 81, Issue 210 (October 31, 2016)

Page Range75352-75361
FR Document2016-26236

This rulemaking establishes policy, assigns responsibilities, and prescribes procedures for the dissemination and withholding of certain unclassified technical data and technology subject to the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). It applies to DoD components, their contractors and grantees and is meant to control the transfer of technical data and technology contributing to the military potential of any country or countries, groups, or individuals that could prove detrimental to U.S, national security or critical interests.

Federal Register, Volume 81 Issue 210 (Monday, October 31, 2016)
[Federal Register Volume 81, Number 210 (Monday, October 31, 2016)]
[Proposed Rules]
[Pages 75352-75361]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26236]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 250

[Docket ID: DOD-2015-OS-0126]
RIN 0790-AI73


Withholding of Unclassified Technical Data and Technology From 
Public Disclosure

AGENCY: Office of the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, DoD.

ACTION: Proposed rule.

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SUMMARY: This rulemaking establishes policy, assigns responsibilities, 
and prescribes procedures for the dissemination and withholding of 
certain unclassified technical data and technology subject to the 
International Traffic in Arms Regulations (ITAR) and Export 
Administration Regulations (EAR). It applies to DoD components, their 
contractors and grantees and is meant to control the transfer of 
technical data and technology contributing to the military potential of 
any country or countries, groups, or individuals that could prove 
detrimental to U.S, national security or critical interests.

DATES: Comments must be received by December 30, 2016.

ADDRESSES: You may submit comments, identified by docket number and/or 
RIN number and title, by any of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Department of Defense, Office of the Deputy Chief 
Management Officer, Directorate for Oversight and Compliance, 4800 Mark 
Center Drive, Mailbox #24, Alexandria, VA 22350-1700.

[[Page 75353]]

    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
Federal Register document. The general policy for comments and other 
submissions from members of the public is to make these submissions 
available for public viewing on the Internet at http://www.regulations.gov as they are received without change, including any 
personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Vakare Valaitis, 703-767-9159.

SUPPLEMENTARY INFORMATION:

Background

    For the purposes of this regulation, public disclosure of technical 
data and technology is the same as providing uncontrolled foreign 
access. This rule instructs DoD employees, contractors, and grantees to 
ensure unclassified technical data and technology that discloses 
technology or information with a military or space application may not 
be exported without authorization and should be controlled and 
disseminated consistent with U.S. export control laws and regulations. 
These policies preserve the U.S. military's technological superiority, 
establish and maintain interoperability with allies and coalition 
partners, and manage direct and indirect impacts on defense industrial 
base.There are penalties for export control violations. For export 
control violations involving items controlled by the United States 
Department of State under the International Traffic in Arms Regulations 
(ITAR), including many munitions items, the statute authorizes a 
maximum criminal penalty of $1 million per violation and, for an 
individual person, up to 10 years imprisonment. In addition, ITAR 
violations can result in the imposition of a maximum civil fine of 
$500,000 per violation, as well as debarment from exporting defense 
articles or services. For export control violations involving dual-use 
and certain munitions items controlled by the United States Department 
of Commerce under the Export Administration Regulations, criminal and 
civil penalties are currently provided by the International Emergency 
Economic Powers Act (IEEPA), 50 U.S.C. 1705, which has continued the 
Export Administration Regulations (EAR) in effect while the Export 
Administration Act is in lapse through Executive Order 13222 of August 
17, 2001 (3 CFR 2001 Comp. 783 (2002)), as amended by Executive Order 
13637 of March 8, 2013, 78 FR 16129 (March 13, 2013) and as extended by 
successive Presidential Notices, the most recent being that of August 
4, 2016 (81 FR 52587 (Aug. 8, 2016)). Under the EAR and IEEPA, as 
adjusted by 15 CFR 5.4(b), the penalty for persons who violate, attempt 
or conspire to violate, or cause a violation of the export control 
regulations includes civil penalties of not more than $284,582 per 
transaction or twice the amount of the transaction, whichever is 
greater, and criminal penalties of not more than $1,000,000, 
imprisonment of not more than 20 years, or both. Violations of the EAR 
may also result in the denial of export priveleges and other 
administrative sanctions.

Authority To Issue This Regulation

    In accordance with 10 U.S.C. 133 part (b)(2), the Under Secretary 
of Defense for Acquisition, Technology and Logistics (USD(AT&L)) may 
exercise powers relating to establishing policies for acquisition 
(including procurement of goods and services, research and development, 
developmental testing, and contract administration) for all elements of 
the Department of Defense. In addition, U.S. export control laws, 
including 22 U.S.C. 2778 (also known as the ``Arms Export Control 
Act''); 50 U.S.C. chapter 35 (also known as the ``International 
Emergency Economic Powers Act'' (IEEPA)); 22 CFR parts 120 through 130 
(also known as ``International Traffic in Arms Regulations'' (ITAR)); 
and 15 CFR parts 730 through 774 (also known as ``Export Administration 
Regulations'' (EAR)) govern this rule.

Summary of the Major Provisions of the Rulemaking

    This proposed rule describes procedures for the release of 
technical information; discusses procedures for technical data and 
technology to be marked for distribution; and provides an example of 
the notice to accompany export-controlled technical data and 
technology.

Costs and Benefits

    DoD is proposing this regulation to update the CFR and DoD 
Directive 5230.25 (available at http://dtic.mil/whs/directives/corres/pdf/523025p.pdf). The Department currently spends $571,876 annually on 
export control certification activities. The costs to DoD contractors 
and grantee consist primarily of the time needed to organize, format, 
and submit information to the U.S./Canada Joint Certification Office to 
qualify for export controlled technical data and technology.
    The program has no discernible increase in anticipated costs and 
benefits as the program is being updated to conform to national 
security guidance cited in the text in Sec. Sec.  250.1 through 250.7.
    The potential benefits include greater public access and 
understanding of information about the qualifications needed for access 
to export controlled technical data and technology. Such information 
may help potential contractors and grantees to better understand their 
options for participating in DoD activities; to better enable funders 
and researchers to determine the need for information and technolgy; to 
provide more complete information of those who use information from DoD 
research and contracts to inform other decisions; and to better enable 
the scientific community to examine the overall state of information 
and technology in this area as a basis for engaging in quality 
improvement (e.g., with regard to research methods). The proposed rule 
is also expected to provide greater clarity about what is required for 
those who are authorized holders of export controlled technical data 
and technology.
    This proposed rule is included in DoD's retrospective plan, 
completed in August 2011, and will be reported in future status updates 
of DoD's retrospective review in accordance with the requirements in 
Executive Order 13563. DoD's full plan can be accessed at: http://www.regulations.gov/#!docketDetail;D=DOD-2011-OS-0036.

Regulatory Procedures

Executive Order 12866, ``Regulatory Planning and Review'' and Executive 
Order 13563, ``Improving Regulation and Regulatory Review''

    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. Although this rulemaking is not ``economically 
significant'' because it does not have an annual effect on the economy 
of $100 million or more or adversely affect in a material way the 
economy, it has been deemed ``other significant'' for raising novel 
legal or policy issues arising out of legal mandates, the President's 
priorities, or

[[Page 75354]]

the principles set forth in these Executive Orders. For that reason, it 
has been reviewed by the Office of Management and Budget (OMB).

Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
(Pub. L. 104-4) requires agencies assess anticipated costs and benefits 
before issuing any rule whose mandates require spending in any 1 year 
of $100 million in 1995 dollars, updated annually for inflation. In 
2014, that threshold is approximately $141 million. This proposed rule 
would not mandate any requirements for State, local, or tribal 
governments, nor would it affect private sector costs.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    The Department of Defense certifies that this proposed rule is not 
subject to the Regulatory Flexibility Act (5 U.S.C. 601) because it 
would not, if promulgated, have a significant economic impact on a 
substantial number of small entities. Therefore, the Regulatory 
Flexibility Act, as amended, does not require us to prepare a 
regulatory flexibility analysis.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    It has been certified that this proposed rule does impose reporting 
or recordkeeping requirements under the Paperwork Reduction Act of 
1995. These reporting requirements have been approved by OMB under OMB 
Control Number 0704-0207 titled DD Form 2345, Militarily Critical 
Technical Data Agreement.
Cost to the Public
    In exchange for Government-owned unclassified export controlled 
technical data and technology, a contractor provides basic company 
information, identifies a technical data and technology custodian, and 
describes need-to-know. The reporting burden is estimated to average 20 
minutes per response. The DD Form 2345 and supporting documentation 
must be submitted to the U.S./Canada Joint Certification Office in 
hardcopy. Approximately 24,000 U.S. companies have active 
certifications.

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24,000 responses........................  $9.94 * per response......  $19.99 postage ** per             $638,400
                                                                       response.
----------------------------------------------------------------------------------------------------------------
* U.S. Department of Labor. Bureau of Labor Statistics. 2014 median weekly earnings of full-time workers with at
  least a bachelor's degree: $1,193. http://www.bls.gov/spotlight/2015/a-look-at-pay-at-the-top-the-bottom-and-in-between/home.htm.
** Most applicants choose Priority Mail Express Flat Rate Envelope USPS Postage Price Calculator http://postcalc.usps.com/.


                                             Cost to the Government
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
4 FTE registrars..............................  GS 9 step 5.....................       $59,036 *        $236,144
1 FTE Team Lead...............................  GS11 step 5.....................        71,429 *          71,429
.5 FTE US Representative......................  GS13 step 5.....................         101,807          50,904
.25 FTE Division Chief........................  GS14 step 5.....................         120,303          30,075
.25 FTE Director..............................  GS15 step 5.....................        35,378 *          35,378
O&M for IT....................................  SP4701-15-F-0031................       2,958,915         147,946
                                                                                 -------------------------------
    Total.....................................  ................................  ..............         571,876
----------------------------------------------------------------------------------------------------------------
* 2014 General Schedule (Base) Office of Personnel Management Salaries and Wages https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2014/general-schedule/.

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct requirement costs on State 
and local governments, preempts State law, or otherwise has federalism 
implications. This proposed rule will not have a substantial effect on 
State and local governments.

List of Subjects in 32 CFR Part 250

    Exports, Science and technology.

    Accordingly, 32 CFR part 250 is proposed to be revised to read as 
follows:

PART 250--WITHHOLDING OF UNCLASSIFIED TECHNICAL DATA AND TECHNOLOGY 
FROM PUBLIC DISCLOSURE

Sec.
250.1 Purpose.
250.2 Applicability.
250.3 Definitions.
250.4 Policy.
250.5 Responsibilities.
250.6 Procedures.
250.7 Directly arranged visits.

    Authority:  10 U.S.C. 133.


Sec.  250.1  Purpose.

    This part establishes policy, assigns responsibilities, and 
prescribes procedures for the dissemination and withholding of certain 
unclassified technical data and technology consistent with the 
requirements of 10 U.S.C. 130.


Sec.  250.2  Applicability.

    This part:
    (a) Applies to:
    (1) The Office of the Secretary of Defense, the Military 
Departments, the Office of the Chairman of the Joint Chiefs of Staff 
and the Joint Staff, the Combatant Commands, the Office of Inspector 
General of the Department of Defense, the Defense Agencies, the DoD 
Field Activities, and all other organizational entities within the DoD 
(referred to collectively in this part as the ``DoD Components'').
    (2) All unclassified technical data and technology that discloses 
technology or information with military or space application, in the 
possession or under the control of a DoD Component, that may not be 
exported lawfully without an approval, authorization, license, license 
exception, or exemption in accordance with U.S. export control laws and 
regulations: 22 U.S.C. 2778 (also known as the ``Arms Export Control 
Act''); 50 U.S.C. chapter 35 (also known as the ``International 
Emergency Economic Powers Act''); 22 CFR parts 120-130 (also known as 
``International Traffic in Arms Regulations'' (ITAR)); and 15 CFR parts 
730 through 774 (also known as ``Export Administration Regulations'' 
(EAR)).
    (b) Does not modify or supplant the regulations governing the 
export of technical data and technology established by 22 U.S.C. 2778, 
50 U.S.C. chapter 35, 22 CFR parts 120 through 130, 10 CFR 810, and 15 
CFR parts 730 through 774.
    (c) Does not apply to technical information under the control of 
the Department of Energy or the Nuclear

[[Page 75355]]

Regulatory Commission pursuant to the Atomic Energy Act of 1954, as 
amended, and the Nuclear Non-Proliferation Act of 1978, as amended.
    (d) Does not introduce any additional controls on the dissemination 
of technical data and technology by private enterprises or individuals 
beyond those specified by export control laws and regulations or in 
contracts or other agreements, including certifications as specified in 
paragraph (a)(9) of Sec.  250.5. Accordingly, the fact that DoD may 
possess such technical data and technology does not in itself provide a 
basis for control of such technical data and technology under this 
part.
    (e) Does not introduce any controls on the dissemination of:
    (1) Scientific, educational, or other items that are not subject to 
the EAR or exclusively controlled for export or reexport by another 
department or agency pursuant to 15 CFR 734.3, 734.7 through 734.8;
    (2) Information in the public domain as described in 22 CFR 120.11 
and technical data that has been approved for release in accordance 
with 22 CFR 125.4(b)(13)).
    (f) Does not alter the responsibilities of the DoD Components to 
protect proprietary technical data and technology of a private party, 
including:
    (1) In which the DoD has less than unlimited rights (e.g., pursuant 
to 48 CFR 227.7202, 252.227-7013, 252.227-7014, 252.227-7015, and 
252.227.7018); and
    (2) That is authorized to be withheld from public disclosure 
pursuant to 5 U.S.C. 552, also known and referred to in this part as 
the ``Freedom of Information Act (FOIA).''
    (g) Does not pertain to or affect the release of technical data and 
technology by DoD Components to foreign governments, international 
organizations or their respective representatives, or contractors 
pursuant to official agreements or formal arrangements with the U.S. 
Government (USG), or pursuant to USG-licensed transactions involving 
such entities or individuals. However, in the absence of such USG-
sanctioned relationships this part does apply.
    (h) Does not apply to classified technical data. However, after 
declassification, dissemination of the technical data and technology 
within the scope of paragraph (a)(2) of this section is governed by 
this part.
    (i) Does not alter the responsibilities of the DoD Components to 
mark and protect information qualifying for designation as controlled 
unclassified information in accordance with Executive Order 13556, 
``Controlled Unclassified Information,'' as implemented by volume 4 of 
DoD Manual 5200.01, ``DoD Information Security Program'' (available at 
http://www.dtic.mil/whs/directives/corres/pdf/520001_vol4.pdf).


Sec.  250.3  Definitions.

    Unless otherwise noted, these terms and their definitions are for 
the purpose of this part.
    Certification. The United States-Canada Joint Certification Program 
certifies contractors of each country for access, on an equally 
favorable basis, to unclassified technical data and technology that 
discloses technology or information with military or space application 
controlled in the United States by this part and in Canada by Canada 
Minister of Justice, Technical Data Control Regulations SOR/86-345, May 
27, 2014 current edition (available at http://laws-lois.justice.gc.ca/PDF/SOR-86-345.pdf).
    Controlling DoD office. The DoD activity that sponsored the work 
that generated the technical data and technology or received the 
technical data and technology on behalf of the DoD and therefore is 
responsible for determining the distribution of a document containing 
the technical data and technology. In the case of joint sponsorship, 
the controlling office is determined by advance agreement and may be a 
party, a group, or a committee representing the interested activities 
or the DoD Components.
    Critical technology. Technology or technologies essential to the 
design, development, production, operation, application, or maintenance 
of an defense or dual-use article or service, which makes or could make 
a significant contribution to the military potential of any country, 
including the United States (also referred to as militarily critical 
technology). This includes, but is not limited to, design and 
manufacturing know-how, technical data, keystone equipment including 
manufacturing, inspection, and test equipment that is required for the 
effective application of technical information and technical know-how.
    (1) With respect to defense articles or defense services: Those 
technologies specified in 22 CFR 121.1.
    (2) With respect to categories of systems, equipment, and 
components; test, inspection, and production equipment; materials; 
software; and technology subject to the EAR: Those technologies 
specified in 15 CFR part 774.
    (3) With respect to nuclear equipment, materials, and technology: 
Those technologies specified in 10 CFR part 810.
    (4) With respect to select agents and toxins: Those technologies 
specified in 7 CFR part 331, 9 CFR part 121, and 42 CFR part 73; and 
any other technologies affecting the critical infrastructure.
    (5) With respect to emerging critical defense technology: Research 
and engineering development, or engineering and technology integration 
that will produce a defense article or defense service, including its 
underlying technology and software, covered by 22 CFR parts 120 through 
130, or a dual-use or munitions item, including its underlying 
technology and software, covered by 15 CFR parts 730 through 774.
    Defense article. Defined at 22 CFR 120.6.
    Defense services. Defined at 22 CFR 120.9.
    Formal arrangement. An instrument that provides the formal 
authorization to establish a voluntary agreement between two or more 
parties for mutual sharing of resources and tasks to achieve a common 
set of objectives, such as The Technical Cooperation Program.
    Legitimate business relationship. A relationship in which the DoD 
determines that a need exists to acquire, share, exchange, or 
disseminate DoD technical information to anyone other than a DoD 
employee for supporting the DoD mission. The relationship may be 
established by a memorandum of understanding, agreement, contract, or 
grant. The DoD has the sole responsibility for determining that a 
legitimate business relationship exists since the only purpose is to 
provide access to information created by or under the control of the 
DoD. Relationships may be established with an individual or 
organization in another Federal department or agency; contractors, 
grantees, or potential DoD contractors; other branches of the Federal 
Government; State and local governments; and foreign countries.
    Limited rights. The rights to use, modify, reproduce, release, 
perform, display, or disclose technical data and technology, in whole 
or in part, within the government.
    Other legitimate business purposes. Include:
    (1) Providing or seeking to provide equipment or technology to a 
foreign government with USG approval (for example, through foreign 
military sale).
    (2) Bidding, or preparing to bid, on a sale of surplus property.
    (3) Selling or producing products for the commercial domestic 
marketplace or for the commercial foreign marketplace,

[[Page 75356]]

providing that any required export license is obtained.
    (4) Engaging in scientific research in a professional capacity.
    (5) Acting as a subcontractor to a qualified contractor.
    Potential DoD contractor. An individual or organization outside the 
DoD declared eligible for DoD information services by a sponsoring DoD 
activity.
    Public disclosure. Making technical data available without 
restricting its dissemination or use.
    Qualified contractor. A qualified U.S. contractor or a qualified 
Canadian contractor referred to in and governed by Canada Minister of 
Justice, Technical Data Control Regulations SOR/86-345, May 27, 2014 
current edition and certified in the Joint Certification Program 
through acceptance of a valid DD Form 2345.
    Qualified Canadian contractor. Canadian contractors are qualified 
for technical data and technology that do not require a license or 
other authorization for export to Canada under 22 CFR 126.5 by 
submitting a certification request to the United States-Canada Joint 
Certification Office established at the Defense Logistics Agency, 
Battle Creek, Michigan, in accordance with the ``Memorandum of 
Understanding Between the Government of Canada and the Government of 
the United States Concerning Strategic Technical Exchange''.
    Qualified U.S. contractor. A private individual or enterprise that, 
in accordance with procedures established by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics (USD(AT&L)) and as a 
condition of obtaining export-controlled technical data and technology 
subject to this part from the DoD:
    (1) Certifies that the individual who will act as recipient of the 
export-controlled technical data and technology on behalf of the U.S. 
contractor is a U.S. citizen or a person admitted lawfully into the 
United States for permanent residence and is located in the United 
States.
    (2) Certifies that such data and technology are needed to bid or 
perform on a contract with the DoD or other USG agency, or for other 
legitimate business purposes in which the U.S. contractor is engaged or 
plans to engage. The purpose for which the data and technology are 
needed must be described sufficiently in such certification to permit 
an evaluation of whether subsequent requests for data and technology 
are related properly to such business purpose.
    (3) Acknowledges its responsibilities under U.S. export control 
laws and regulations (including the obligation, under certain 
circumstances, to obtain an export license prior to the release of 
technical data and technology within the United States) and agrees that 
it will not disseminate any export-controlled technical data and 
technology subject to this part in violation of applicable export 
control laws and regulations.
    (4) Agrees that, unless dissemination is permitted by paragraph (i) 
of Sec.  250.6, it will not provide access, including network access, 
to export-controlled technical data and technology subject to this part 
to persons other than its employees or persons acting on its behalf, 
and who meet the same citizenship or residency requirements without the 
permission of the DoD Component that provided the technical data and 
technology.
    (5) To the best of its knowledge, knows of no person employed by it 
or acting on its behalf who will have access to such data and 
technology, who is debarred, suspended, or otherwise ineligible from 
performing on USG contracts; or has violated U.S. export control laws 
or a certification previously made to the DoD under the provisions of 
this part.
    (6) Asserts that it is not debarred, suspended, or otherwise 
determined ineligible by any agency of the USG to perform on USG 
contracts, has not been convicted of export control law violations, and 
has not been disqualified under the provisions of this part.
    (7) Requests the certification be accepted based on its description 
of extenuating circumstances when the certifications required by this 
definition cannot be made truthfully.
    Restricted rights. The government's rights to use a computer 
program with one computer at one time. Applicable only to noncommercial 
computer software.
    Technical data. Defined at 22 CFR 120.10.
    (1) Classified data relating to defense articles and defense 
services on the U.S. Munitions List;
    (2) Information covered by an invention secrecy order; or
    (3) Software (see 22 CFR 120.45(f)) directly related to defense 
articles.
    (4) The definition does not include information concerning general 
scientific, mathematical, or engineering principles commonly taught in 
schools, colleges, and universities, or information in the public 
domain as defined in 22 CFR 120.11 or telemetry data as defined in note 
3 to Category XV(f) of in 22 CFR part 121. It also does not include 
basic marketing information on function or purpose or general system 
descriptions of defense articles.
    Technical information. Includes technical data and technology as 
defined in 15 CFR parts 730 through 774, as well as technical 
information that is not subject to 22 CFR parts 120 through 130 or 15 
CFR parts 730 through 774. It also includes technical data or computer 
software of any kind that can be used or adapted for use in the design, 
production, manufacture, assembly, repair, overhaul, processing, 
engineering, development, operation, maintenance, adapting, testing, or 
reconstruction of goods or materiel; or any technology that advances 
the state of the art, or establishes a new art, in an area of 
significant military or space applicability in the United States. The 
data may be in tangible form, such as a blueprint, photograph, plan, 
instruction, or an operating manual, or may be intangible, such as a 
technical service or oral, auditory, or visual descriptions. Examples 
of technical data include research and engineering data, engineering 
drawings, and associated lists, specifications, standards, process 
sheets, manuals, technical reports, technical orders, catalog item 
identifications, data sets, studies and analyses and related 
information, and computer software.
    Technology. Defined in 15 CFR 772.1.
    United States. The 50 States, the District of Columbia, and the 
territories and possessions of the United States.
    United States-Canada Joint Certification Office. The office 
established to certify contractors of each country for access, on an 
equally favorable basis, to unclassified technical data and technology 
disclosing technology controlled in the United States by this part and 
in Canada by Canada Minister of Justice, Technical Data Control 
Regulations SOR/86-345, May 27, 2014 current edition.
    U.S. DoD contractor. Those qualified U.S. contractors currently 
holding grants or contracts with DoD or those contractors declared 
eligible for DoD information services by a sponsoring DoD activity on 
the basis of participation in a DoD Potential Contractor Program.


Sec.  250.4  Policy.

    It is DoD policy that:
    (a) Pursuant to 10 U.S.C. 130 and 133, the Secretary of Defense may 
withhold from public disclosure any technical data and technology with 
military or space application in the possession or under the control of 
the DoD, if such technical data and technology may not be exported 
lawfully without a license, exception, exemption, or other export

[[Page 75357]]

authorization, in accordance with U.S. export control laws and 
regulations (including 22 U.S.C. 2778, 50 U.S.C. chapter 35, 22 CFR 
parts 120 through 130, and 15 CFR parts 730 through 774). However, 
technical data and technology may not be withheld if regulations 
distributed in accordance with 22 U.S.C. 2778 authorize the export of 
such technical data and technology pursuant to a general unrestricted 
license or exemption.
    (b) Because public disclosure of technical data and technology 
subject to this part is the same as providing uncontrolled foreign 
access, withholding such technical data and technology from public 
disclosure, unless approved, authorized, or licensed in accordance with 
export control laws, is necessary and in the national interest.
    (c) Notwithstanding the authority in paragraph (c)(1) of this 
section, it is DoD policy to provide technical data and technology 
governed by this part to individuals and enterprises that are:
    (1) Currently qualified U.S. contractors, when such technical data 
and technology relate to a legitimate business purpose for which the 
contractor is certified; or
    (2) A certified Canadian contractor referred to in and governed by 
Canada Minister of Justice, Technical Data Control Regulations SOR/86-
345, May 27, 2014 current edition (available at http://laws-lois.justice.gc.ca/PDF/SOR-86-345.pdf) and registered at the United 
States-Canada Joint Certification Office when a legitimate business 
relationship has been established between the government and the 
contractor.
    (d) This part may not be used by the DoD Components as authority to 
deny access to technical data and technology to the Congress or to any 
Federal, State, or local government agency that requires the technical 
data and technology for regulatory or other official government 
purposes. Dissemination of the technical data and technology will 
include a statement that DoD controls it, in accordance with this part.
    (e) The authority in this part may not be used to withhold from 
public disclosure unclassified information regarding DoD operations, 
policies, activities, or programs, including the costs and evaluations 
of performance and reliability of military and space equipment. When 
information does contain technical data and technology subject to this 
part, the technical data and technology must be excised from what is 
disclosed publicly.
    (f) This part may not be used as a basis for the release of limited 
rights or restricted rights data as defined in 48 CFR or those that are 
authorized to be withheld from public disclosure pursuant to the 5 
U.S.C. 552.
    (g) This part may not be used to provide protection for technical 
data that should be classified in accordance with Executive Order 
13526, ``Classified National Security Information,'' and volume 1 of 
DoD Manual 5200.01 (available at http://www.dtic.mil/whs/directives/corres/pdf/520001_vol1.pdf).
    (h) This part provides immediate authority to cite section (b)(3) 
of 5 U.S.C. 552 (FOIA Exemption 3) described in 32 CFR part 286 as the 
basis for denials under 5 U.S.C. 552 of technical data and technology 
currently determined to be subject to the provisions of this part. The 
technical data will be withheld under the authority of 10 U.S.C.130. If 
the information originated or is under the control of a Government 
Agency outside the DoD, DoD Components will refer to that Government 
Agency for a release determination.
    (i) Technical data and technology subject to this part must be 
marked in accordance with DoD Instruction 5230.24, ``Distribution 
Statements on Technical Documents'' (available at http://www.dtic.mil/whs/directives/corres/pdf/523024p.pdf) and volume 4 of DoD Manual 
5200.01 and released in accordance with DoD Instruction 2040.02, 
``International Transfers of Technology, Articles, and Services'' 
(available at http://www.dtic.mil/whs/directives/corres/pdf/204002_2014.pdf), DoD Directive 5230.09, ``Clearance of DoD Information 
for Public Release'' (available at http://www.dtic.mil/whs/directives/corres/pdf/523009p.pdf), DoD Instruction 5230.29, ``Security and Policy 
Review of DoD Information for Public Release'' (available at http://www.dtic.mil/whs/directives/corres/pdf/523029p.pdf), and 32 CFR part 
285.
    (j) Technical data and technology subject to this part, when 
disseminated electronically, must be marked in accordance with volume 4 
of DoD Manual 5200.01 and are subject to all applicable security 
requirements specified in DoD Instruction 8500.01, ``Cybersecurity'' 
(available at http://www.dtic.mil/whs/directives/corres/pdf/850001_2014.pdf) and Chairman of the Joint Chiefs of Staff Instruction 
6510.01F, ``Information Assurance (IA) and Support to Computer Network 
Defense (CND),'' February 9, 2011, as amended (available at http://www.dtic.mil/cjcs_directives/cdata/unlimit/6510_01.pdf).
    (k) In accordance with DoD Instruction 5015.02, ``DoD Records 
Management Program'' (available at http://www.dtic.mil/whs/directives/corres/pdf/501502p.pdf), technical data and technology subject to this 
part must be maintained and managed consistent with National Archives 
and Records Administration approved dispositions to ensure proper 
maintenance, use, accessibility, and preservation, regardless of format 
or medium.


Sec.  250.5  Responsibilities.

    (a) The Under Secretary of Defense for Acquisition, Technology, and 
Logistics (USD(AT&L)) has overall responsibility for the implementation 
of this part and will designate an office to:
    (1) Administer and monitor compliance with this part.
    (2) Receive and disseminate notifications of temporary revocation 
of contractor qualification in accordance with paragraph (e) of Sec.  
250.6.
    (3) Receive recommendations for contractor disqualification made in 
accordance with paragraph (f) of Sec.  250.6, and act as 
disqualification authority.
    (4) Provide technical assistance when necessary to the DoD 
Components to assess the significance of the military or space 
application of technical data and technology that may be withheld from 
public disclosure in accordance with this part.
    (5) Maintain and update procedures and appropriate mechanisms for 
the certification of qualified contractors, in accordance with 
paragraph (c) of Sec.  250.4 of this part.
    (6) Ensure that the requirements of this part are incorporated into 
48 CFR for application to contracts involving technical data and 
technology governed by this part.
    (7) Develop, in conjunction with the Office of the General Counsel 
of the Department of Defense (GC DoD), guidelines for responding to 
appeals, as identified in paragraph (k) of Sec.  250.6.
    (8) Develop procedures to ensure that the DoD Components apply 
consistent criteria in authorizing exceptions in accordance with 
paragraph (j) of Sec.  250.6.
    (9) Prescribe procedures to develop, collect, and disseminate 
certification statements; to ensure their sufficiency, accuracy, and 
periodic renewal; and to make final determinations of qualification.
    (10) Take such other actions that may be required to ensure 
consistent and appropriate implementation of this part within the DoD.
    (b) The Under Secretary of Defense for Policy (USD(P)):
    (1) Prepares and issues policy guidance regarding the foreign 
disclosure and security controls for information in international 
programs within the scope of this part.
    (2) Provides consultation to DoD offices on export control and 
commodity jurisdiction determinations.

[[Page 75358]]

    (c) The Deputy Chief Management Officer (DCMO) of the Department of 
Defense:
    (1) Monitors the implementation of the provisions of this part that 
pertain to 5 U.S.C. 552 and 32 CFR part 285.
    (2) Provides such other assistance as may be necessary to ensure 
compliance with this part.
    (d) The GC DoD:
    (1) Advises DoD Components with respect to the statutory and 
regulatory requirements governing the export of technical data and 
technology.
    (2) Advises the USD(AT&L) regarding consistent and appropriate 
implementation of this part.
    (e) The DoD Component heads:
    (1) Disseminate and withhold from public disclosure technical data 
and technology subject to this part consistent with its policies and 
procedures.
    (2) Designate a focal point to:
    (i) Ensure implementation of this part.
    (ii) Identify classes of technical data and technology whose 
release are governed by paragraph (d)(3) of Sec.  250.6.
    (iii) Act on appeals relating to case-by-case denials for release 
of technical data and technology.
    (iv) Temporarily revoke a contractor's qualification in accordance 
with paragraph (e) of Sec.  250.6.
    (v) Receive and evaluate requests for reinstatement of a 
contractor's qualification in accordance with paragraph (e)(4) of Sec.  
250.6.
    (vi) Recommend contractor's disqualification to the USD(AT&L) in 
accordance with paragraph (f) of Sec.  250.6.
    (3) Develop, distribute, and effect Component regulations to 
implement this part.
    (4) Ensure that the controlling DoD office that created or 
sponsored the technical information exercises its inherently 
governmental responsibility to determine the appropriate marking in 
accordance with DoD Instruction 5230.24 and volumes 2 and 4 of DoD 
Manual 5200.01 (volume 2 available at http://www.dtic.mil/whs/directives/corres/pdf/520001_vol2.pdf) and that all technical 
documents, including research, development, engineering, test, 
sustainment, and logistics information, regardless of media or form, 
are marked correctly.


Sec.  250.6  Procedures.

    (a) Procedures for release of technical information must be made 
under the following guidelines:
    (1) DoD Components may make their technical information for other 
than military or space application available for public disclosure in 
accordance with DoD Directive 5230.09 and DoD Instruction 5230.29. DoD 
has the authority to withhold technical data and technology as defined 
in Sec.  250.3 from public disclosure.
    (2) DoD Components will process FOIA requests from the public for 
technical information in accordance with 32 CFR part 286 and governing 
DoD Component issuances. All requested technical data and technology 
currently determined to be subject to the withholding authority in this 
part will be denied under Exemption 3 of 5 U.S.C. 552 and 10 U.S.C. 
130. Any FOIA appeals for the denied information will be processed in 
accordance with 32 CFR part 286 and governing DoD Component issuances.
    (3) DoD Components may give qualified contractors access to their 
technical data and technology as permitted by the provisions of this 
part.
    (i) United States-Canada Joint Certification Office adjudicates 
certification of qualified contractors.
    (ii) To qualify, U.S. and Canadian contractors must submit a 
completed DD Form 2345 ``Militarily Critical Technical Data 
Agreement,'' to the United States-Canada Joint Certification Office.
    (iii) To qualify, Canadian contractors will submit a completed DD 
Form 2345 when a Canadian contractor intends to request access to DoD-
controlled technical data and technology.
    (iv) A copy of the company's State/Provincial Business License, 
Incorporation Certificate, Sales Tax Identification Form, ITAR 
Controlled Goods Registration letter or certificate, or other 
documentation that verifies the legitimacy of the company must 
accompany all DD Forms 2345.
    (v) The contractor's business activity is a key element of the 
certification process since this information is used by the controlling 
office as a basis for approving or disapproving specific requests for 
technical data and technology. The business activity statement should 
be sufficiently detailed to support requests for any data that the 
contractor expects for legitimate business purposes.
    (b) Upon receipt of a request for technical information in the 
possession of, or under the control of the DoD, the controlling DoD 
office for the requested information will determine whether the 
information is governed by this part.
    (1) The determination will be based on whether
    (i) The information is subject to 22 CFR part 121 or 15 CFR part 
774.
    (ii) The information would require a license, exception, exemption, 
or other export authorization in accordance with U.S. export control 
laws and regulations in accordance with 22 U.S.C. 2778, 50 U.S.C. 
chapter 35, 22 CFR parts 120 through 130, and 15 CFR parts 730 through 
774.
    (iii) The information would not fall into the categories of 
information described in paragraphs (c) and (d) of Sec.  250.2.
    (2) In making such a determination, the controlling office may 
consult with the Defense Technology Security Administration for advice 
on whether U.S. export control laws or regulations apply. The 
controlling DoD office may request assistance in making this 
determination from the USD(AT&L), and if necessary, consult the 
Departments of State, Commerce, or Energy.
    (c) The controlling DoD office will ensure technical data and 
technology governed by this part are marked for distribution in 
accordance with DoD Instruction 5230.24 and volume 4 of DoD Manual 
5200.01.
    (d) The controlling DoD office will authorize release of technical 
data and technology governed by this part to qualified contractors, as 
defined in Sec.  250.3, unless either:
    (1) The qualification of the contractor concerned has been 
temporarily revoked in accordance with paragraph (e) of this section;
    (2) The controlling DoD office judges the requested technical data 
and technology to be unrelated to the purpose for which the qualified 
contractor is certified. When release of technical data and technology 
is denied in accordance with this paragraph, the controlling DoD office 
will request additional information to explain the intended use of the 
requested technical data and technology and, if appropriate, request a 
new certification (see Sec.  250.3) describing the intended use of the 
requested technical data and technology; or
    (3) The technical data and technology are being requested for a 
purpose other than to permit the requester to bid or perform on a 
contract with the DoD or other USG agency. In this case, the 
controlling DoD office will withhold the technical data and technology 
if the DoD Component focal point determines the release of the 
technical data and technology may jeopardize an important technological 
or operational military advantage of the United States.
    (e) Upon receipt of substantial and credible information that a 
qualified U.S. contractor has violated U.S. export control law; 
violated its certification; made a certification in bad faith; or 
omitted or misstated material fact, the DoD Component will temporarily 
revoke the U.S. contractor's

[[Page 75359]]

qualification. Canadian contractors are disqualified in accordance with 
Canada Minister of Justice, Technical Data Control Regulations SOR/86-
345, May 27, 2014 current edition.
    (1) The DoD Component may delay such temporary revocations with the 
potential to compromise a USG investigation.
    (2) Immediately upon a temporary revocation, the DoD Component will 
notify the contractor and the USD(AT&L).
    (3) The contractor will be given an opportunity to respond in 
writing to the information upon which the temporary revocation is based 
before being disqualified.
    (4) Any U.S. contractor whose qualification has been temporarily 
revoked may present information to the DoD Component showing that the 
basis for revocation was in error or has been remedied and be 
reinstated.
    (f) When the basis for a contractor's temporary revocation cannot 
be removed within 20 working days, the DoD Component will recommend to 
the USD(AT&L) that the contractor be disqualified.
    (g) After receipt of substantial and credible information that a 
qualified U.S. contractor has violated U.S. export control law, the DoD 
Component must notify the appropriate law enforcement agency.
    (h) Charges for copying, certifying, and searching records rendered 
to requesters will be levied in accordance with chapter 4, appendix 2 
of volume 11A of DoD 7000.14-R, ``Department of Defense Financial 
Management Regulations (FMRs)'' (available at http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_11a.pdf). 
Normally, only one copy of the same record or document will be provided 
to each requester. Each release to qualified contractors of controlled 
technical data and technology governed by this part will be accompanied 
by a ``Notice to Accompany the Dissemination of Export-Controlled 
Technical Data and Technology'' (see Figure to Sec.  250.6(h)).

BILLING CODE 5001-06-P

[[Page 75360]]

[GRAPHIC] [TIFF OMITTED] TP31OC16.007

BILLING CODE 5001-06-C

    (i) Qualified U.S. contractors who receive technical data and 
technology governed by this part may disseminate that technical data 
and technology for

[[Page 75361]]

purposes consistent with their certification without the permission of 
the controlling DoD office or when dissemination is:
    (1) To any foreign recipient for which the technical data and 
technology are approved, authorized, or licensed in accordance with 22 
U.S.C. 2778 or 15 CFR parts 730 through 774.
    (2) To another qualified U.S. contractor including existing or 
potential subcontractors, but only within the scope of the certified 
legitimate business purpose of the recipient.
    (3) To the Departments of State and Commerce to apply for 
approvals, authorizations, or licenses for export pursuant to 22 U.S.C. 
2778 or 15 CFR parts 730 through 774. The application will include a 
statement that the technical data and technology for which the 
approval, authorization, or license is sought is controlled by the DoD 
in accordance with this part.
    (4) To the Congress or any Federal, State, or local governmental 
agency for regulatory purposes or otherwise as may be required by law 
or court order. Any such dissemination will include a statement that 
the technical data and technology are controlled by the DoD in 
accordance with this part.
    (j) A qualified contractor desiring to disseminate technical data 
and technology subject to this part in a manner not permitted expressly 
by the terms of this part must be granted authority to do so by the 
controlling DoD office, consistent with U.S. export control laws and 
regulations specified in 22 U.S.C. 2778, 50 U.S.C. chapter 35, 22 CFR 
parts 120 through 130, and 15 CFR parts 730 through 774 and DoD 
policies.
    (k) Any requester denied technical data and technology or any 
qualified U.S. contractor denied permission to disseminate such 
technical data and technology in accordance with this part will be 
promptly provided with a written statement of reasons for that action, 
and advised of the right to make a written appeal to a specifically 
identified appellate authority within the DoD Component. Other appeals 
will be processed as directed by the USD(AT&L).
    (l) Denials will cite 10 U.S.C. 130 and 133 as implemented by this 
part. Implementing procedures will provide for resolution of any appeal 
within 20 working days.


Sec.  250.7  Directly arranged visits.

    (a) USG officials and certified U.S. contractors and Canadian 
government officials and certified Canadian contractors may use the 
certification process to facilitate directly arranged visits that 
involve access to unclassified technical data and technology. 
Activities under this process are limited to:
    (1) Procurement activities such as unclassified pre-solicitation 
conferences, discussions related to unclassified solicitations, and 
collection of procurement unclassified documents.
    (2) Performance of an unclassified contract.
    (3) Scientific research, in support of unclassified U.S. or 
Canadian national defense initiatives.
    (4) Attendance at restricted meetings, conferences, symposia, and 
program briefings where technical data and technology governed by this 
part or Canada Minister of Justice, Technical Data Control Regulations 
SOR/86-345, May 27, 2014 current edition will be presented, or the 
event is being held in an unclassified access controlled area.
    (b) A directly arranged visit does not apply to uncertified U.S. or 
Canadian contractors; classified visits, where confirmation of the 
visitors' security clearances is required; or unsolicited marketing 
visits.
    (c) A directly arranged visit related to the release of information 
controlled in the United States by this part or in Canada by Canada 
Minister of Justice, Technical Data Control Regulations SOR/86-345, May 
27, 2014 current edition, is permitted when two conditions are 
satisfied.
    (1) First condition:
    (i) There is a valid license covering the export of the technical 
data and technology;
    (ii) The export or release is permitted under the Canadian 
exemption on 22 CFR 126.5;
    (iii) The export or release is covered by the general exemptions in 
22 CFR 125.4; or
    (iv) The export or release qualifies for a license exception under 
15 CFR parts 730 through 774.
    (2) Second condition:
    (i) The distribution statement applied to the technical data and 
technology pursuant to DoD Instruction 5230.24 permits release; or
    (ii) The originator or government controlling office authorizes 
release.

    Dated: October 26, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2016-26236 Filed 10-28-16; 8:45 am]
 BILLING CODE 5001-06-P



                                               75352                  Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules

                                               Electronic Submissions                                  with a heading or cover note that states              current 90-day comment period does
                                                 Submit electronic comments in the                     ‘‘THIS DOCUMENT CONTAINS                              not allow sufficient time to develop a
                                               following way:                                          CONFIDENTIAL INFORMATION.’’ The                       meaningful or thoughtful response to
                                                 • Federal eRulemaking Portal: http://                 Agency will review this copy, including               the proposed rule.
                                                                                                       the claimed confidential information, in                 FDA has considered the requests and
                                               www.regulations.gov. Follow the
                                                                                                       its consideration of comments. The                    is extending the comment period for the
                                               instructions for submitting comments.
                                                                                                       second copy, which will have the                      proposed rule for 60 days, until January
                                               Comments submitted electronically,
                                                                                                       claimed confidential information                      21, 2017. The Agency believes that a 60-
                                               including attachments, to http://
                                                                                                       redacted/blacked out, will be available               day extension allows adequate time for
                                               www.regulations.gov will be posted to
                                                                                                       for public viewing and posted on http://              interested persons to submit comments
                                               the docket unchanged. Because your
                                                                                                       www.regulations.gov. Submit both                      without significantly delaying
                                               comment will be made public, you are
                                                                                                       copies to the Division of Dockets                     rulemaking on these important issues.
                                               solely responsible for ensuring that your
                                               comment does not include any                            Management. If you do not wish your                     Dated: October 26, 2016.
                                               confidential information that you or a                  name and contact information to be                    Leslie Kux,
                                               third party may not wish to be posted,                  made publicly available, you can                      Associate Commissioner for Policy.
                                               such as medical information, your or                    provide this information on the cover                 [FR Doc. 2016–26244 Filed 10–28–16; 8:45 am]
                                               anyone else’s Social Security number, or                sheet and not in the body of your
                                                                                                                                                             BILLING CODE 4164–01–P
                                               confidential business information, such                 comments and you must identify this
                                               as a manufacturing process. Please note                 information as ‘‘confidential.’’ Any
                                               that if you include your name, contact                  information marked as ‘‘confidential’’
                                                                                                       will not be disclosed except in                       DEPARTMENT OF DEFENSE
                                               information, or other information that
                                               identifies you in the body of your                      accordance with 21 CFR 10.20 and other                Office of the Secretary
                                               comments, that information will be                      applicable disclosure law. For more
                                               posted on http://www.regulations.gov.                   information about FDA’s posting of                    32 CFR Part 250
                                                 • If you want to submit a comment                     comments to public dockets, see 80 FR
                                                                                                       56469, September 18, 2015, or access                  [Docket ID: DOD–2015–OS–0126]
                                               with confidential information that you
                                               do not wish to be made available to the                 the information at: http://www.fda.gov/               RIN 0790–AI73
                                               public, submit the comment as a                         regulatoryinformation/dockets/
                                               written/paper submission and in the                     default.htm.                                          Withholding of Unclassified Technical
                                                                                                          Docket: For access to the docket to                Data and Technology From Public
                                               manner detailed (see ‘‘Written/Paper
                                                                                                       read background documents or the                      Disclosure
                                               Submissions’’ and ‘‘Instructions’’).
                                                                                                       electronic and written/paper comments
                                               Written/Paper Submissions                               received, go to http://                               AGENCY:  Office of the Under Secretary of
                                                                                                       www.regulations.gov and insert the                    Defense for Acquisition, Technology,
                                                  Submit written/paper submissions as                                                                        and Logistics, DoD.
                                               follows:                                                docket number, found in brackets in the
                                                                                                       heading of this document, into the                    ACTION: Proposed rule.
                                                  • Mail/Hand delivery/Courier (for
                                               written/paper submissions): Division of                 ‘‘Search’’ box and follow the prompts                 SUMMARY:    This rulemaking establishes
                                               Dockets Management (HFA–305), Food                      and/or go to the Division of Dockets                  policy, assigns responsibilities, and
                                               and Drug Administration, 5630 Fishers                   Management, 5630 Fishers Lane, Rm.                    prescribes procedures for the
                                               Lane, Rm. 1061, Rockville, MD 20852.                    1061, Rockville, MD 20852.                            dissemination and withholding of
                                                  • For written/paper comments                         FOR FURTHER INFORMATION CONTACT:                      certain unclassified technical data and
                                               submitted to the Division of Dockets                    Vernon Toelle, Office of Surveillance                 technology subject to the International
                                               Management, FDA will post your                          and Compliance, Center for Veterinary                 Traffic in Arms Regulations (ITAR) and
                                               comment, as well as any attachments,                    Medicine, Food and Drug                               Export Administration Regulations
                                               except for information submitted,                       Administration, 7519 Standish Pl.,                    (EAR). It applies to DoD components,
                                               marked and identified, as confidential,                 MPN4–142, Rockville, MD 20855, 240–                   their contractors and grantees and is
                                               if submitted as detailed in                             402–5637; or Kristin Webster Maloney,                 meant to control the transfer of
                                               ‘‘Instructions.’’                                       Office of Policy and Risk Management,                 technical data and technology
                                                  Instructions: All submissions received               Office of Regulatory Affairs, Food and                contributing to the military potential of
                                               must include the Docket No. FDA–                        Drug Administration, 10903 New                        any country or countries, groups, or
                                               2010–N–0548 for ‘‘Good Laboratory                       Hampshire Ave., Bldg. 32, Rm. 4373,                   individuals that could prove
                                               Practice for Nonclinical Laboratory                     Silver Spring, MD 20993, 240–402–                     detrimental to U.S, national security or
                                               Studies.’’ Received comments will be                    4993.                                                 critical interests.
                                               placed in the docket and, except for                    SUPPLEMENTARY INFORMATION: In the                     DATES: Comments must be received by
                                               those submitted as ‘‘Confidential                       Federal Register of August 24, 2016,                  December 30, 2016.
                                               Submissions,’’ publicly viewable at                     FDA published a proposed rule with a                  ADDRESSES: You may submit comments,
                                               http://www.regulations.gov or at the                    90-day comment period to request                      identified by docket number and/or RIN
                                               Division of Dockets Management                          comments on its proposal to amend the                 number and title, by any of the
                                               between 9 a.m. and 4 p.m., Monday                       regulations for good laboratory practice              following methods:
                                               through Friday.                                         for nonclinical studies. Comments on                    • Federal Rulemaking Portal: http://
                                                  • Confidential Submissions—To                        the proposed amendments will inform                   www.regulations.gov. Follow the
Lhorne on DSK30JT082PROD with PROPOSALS




                                               submit a comment with confidential                      FDA’s rulemaking to establish                         instructions for submitting comments.
                                               information that you do not wish to be                  regulations for good laboratory practice                • Mail: Department of Defense, Office
                                               made publicly available, submit your                    for nonclinical laboratory studies.                   of the Deputy Chief Management
                                               comments only as a written/paper                           The Agency has received requests for               Officer, Directorate for Oversight and
                                               submission. You should submit two                       a 90-day extension of the comment                     Compliance, 4800 Mark Center Drive,
                                               copies total. One copy will include the                 period for the proposed rule. Each                    Mailbox #24, Alexandria, VA 22350–
                                               information you claim to be confidential                request conveyed concern that the                     1700.


                                          VerDate Sep<11>2014   14:09 Oct 28, 2016   Jkt 241001   PO 00000   Frm 00006   Fmt 4702   Sfmt 4702   E:\FR\FM\31OCP1.SGM   31OCP1


                                                                      Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules                                          75353

                                                  Instructions: All submissions received               (March 13, 2013) and as extended by                      The program has no discernible
                                               must include the agency name and                        successive Presidential Notices, the                  increase in anticipated costs and
                                               docket number or Regulatory                             most recent being that of August 4, 2016              benefits as the program is being updated
                                               Information Number (RIN) for this                       (81 FR 52587 (Aug. 8, 2016)). Under the               to conform to national security guidance
                                               Federal Register document. The general                  EAR and IEEPA, as adjusted by 15 CFR                  cited in the text in §§ 250.1 through
                                               policy for comments and other                           5.4(b), the penalty for persons who                   250.7.
                                               submissions from members of the public                  violate, attempt or conspire to violate, or              The potential benefits include greater
                                               is to make these submissions available                  cause a violation of the export control               public access and understanding of
                                               for public viewing on the Internet at                   regulations includes civil penalties of               information about the qualifications
                                               http://www.regulations.gov as they are                  not more than $284,582 per transaction                needed for access to export controlled
                                               received without change, including any                  or twice the amount of the transaction,               technical data and technology. Such
                                               personal identifiers or contact                         whichever is greater, and criminal                    information may help potential
                                               information.                                            penalties of not more than $1,000,000,                contractors and grantees to better
                                               FOR FURTHER INFORMATION CONTACT:
                                                                                                       imprisonment of not more than 20                      understand their options for
                                               Vakare Valaitis, 703–767–9159.                          years, or both. Violations of the EAR                 participating in DoD activities; to better
                                                                                                       may also result in the denial of export               enable funders and researchers to
                                               SUPPLEMENTARY INFORMATION:
                                                                                                       priveleges and other administrative                   determine the need for information and
                                               Background                                              sanctions.                                            technolgy; to provide more complete
                                                  For the purposes of this regulation,                 Authority To Issue This Regulation                    information of those who use
                                               public disclosure of technical data and                                                                       information from DoD research and
                                                                                                          In accordance with 10 U.S.C. 133 part              contracts to inform other decisions; and
                                               technology is the same as providing                     (b)(2), the Under Secretary of Defense
                                               uncontrolled foreign access. This rule                                                                        to better enable the scientific
                                                                                                       for Acquisition, Technology and                       community to examine the overall state
                                               instructs DoD employees, contractors,                   Logistics (USD(AT&L)) may exercise
                                               and grantees to ensure unclassified                                                                           of information and technology in this
                                                                                                       powers relating to establishing policies              area as a basis for engaging in quality
                                               technical data and technology that                      for acquisition (including procurement
                                               discloses technology or information                                                                           improvement (e.g., with regard to
                                                                                                       of goods and services, research and                   research methods). The proposed rule is
                                               with a military or space application may                development, developmental testing,
                                               not be exported without authorization                                                                         also expected to provide greater clarity
                                                                                                       and contract administration) for all                  about what is required for those who are
                                               and should be controlled and                            elements of the Department of Defense.
                                               disseminated consistent with U.S.                                                                             authorized holders of export controlled
                                                                                                       In addition, U.S. export control laws,                technical data and technology.
                                               export control laws and regulations.                    including 22 U.S.C. 2778 (also known as
                                               These policies preserve the U.S.                                                                                 This proposed rule is included in
                                                                                                       the ‘‘Arms Export Control Act’’); 50                  DoD’s retrospective plan, completed in
                                               military’s technological superiority,                   U.S.C. chapter 35 (also known as the
                                               establish and maintain interoperability                                                                       August 2011, and will be reported in
                                                                                                       ‘‘International Emergency Economic                    future status updates of DoD’s
                                               with allies and coalition partners, and                 Powers Act’’ (IEEPA)); 22 CFR parts 120
                                               manage direct and indirect impacts on                                                                         retrospective review in accordance with
                                                                                                       through 130 (also known as                            the requirements in Executive Order
                                               defense industrial base.There are                       ‘‘International Traffic in Arms
                                               penalties for export control violations.                                                                      13563. DoD’s full plan can be accessed
                                                                                                       Regulations’’ (ITAR)); and 15 CFR parts               at: http://www.regulations.gov/
                                               For export control violations involving                 730 through 774 (also known as ‘‘Export
                                               items controlled by the United States                                                                         #!docketDetail;D=DOD-2011-OS-0036.
                                                                                                       Administration Regulations’’ (EAR))
                                               Department of State under the                           govern this rule.                                     Regulatory Procedures
                                               International Traffic in Arms
                                               Regulations (ITAR), including many                      Summary of the Major Provisions of the                Executive Order 12866, ‘‘Regulatory
                                               munitions items, the statute authorizes                 Rulemaking                                            Planning and Review’’ and Executive
                                               a maximum criminal penalty of $1                                                                              Order 13563, ‘‘Improving Regulation
                                                                                                         This proposed rule describes
                                               million per violation and, for an                                                                             and Regulatory Review’’
                                                                                                       procedures for the release of technical
                                               individual person, up to 10 years                       information; discusses procedures for                    Executive Orders 13563 and 12866
                                               imprisonment. In addition, ITAR                         technical data and technology to be                   direct agencies to assess all costs and
                                               violations can result in the imposition                 marked for distribution; and provides an              benefits of available regulatory
                                               of a maximum civil fine of $500,000 per                 example of the notice to accompany                    alternatives and, if regulation is
                                               violation, as well as debarment from                    export-controlled technical data and                  necessary, to select regulatory
                                               exporting defense articles or services.                 technology.                                           approaches that maximize net benefits
                                               For export control violations involving                                                                       (including potential economic,
                                               dual-use and certain munitions items                    Costs and Benefits                                    environmental, public health and safety
                                               controlled by the United States                           DoD is proposing this regulation to                 effects, distribute impacts, and equity).
                                               Department of Commerce under the                        update the CFR and DoD Directive                      Executive Order 13563 emphasizes the
                                               Export Administration Regulations,                      5230.25 (available at http://dtic.mil/                importance of quantifying both costs
                                               criminal and civil penalties are                        whs/directives/corres/pdf/523025p.pdf).               and benefits, of reducing costs, of
                                               currently provided by the International                 The Department currently spends                       harmonizing rules, and of promoting
                                               Emergency Economic Powers Act                           $571,876 annually on export control                   flexibility. Although this rulemaking is
                                               (IEEPA), 50 U.S.C. 1705, which has                      certification activities. The costs to DoD            not ‘‘economically significant’’ because
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                                               continued the Export Administration                     contractors and grantee consist                       it does not have an annual effect on the
                                               Regulations (EAR) in effect while the                   primarily of the time needed to                       economy of $100 million or more or
                                               Export Administration Act is in lapse                   organize, format, and submit                          adversely affect in a material way the
                                               through Executive Order 13222 of                        information to the U.S./Canada Joint                  economy, it has been deemed ‘‘other
                                               August 17, 2001 (3 CFR 2001 Comp. 783                   Certification Office to qualify for export            significant’’ for raising novel legal or
                                               (2002)), as amended by Executive Order                  controlled technical data and                         policy issues arising out of legal
                                               13637 of March 8, 2013, 78 FR 16129                     technology.                                           mandates, the President’s priorities, or


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                                               75354                         Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules

                                               the principles set forth in these                                          Public Law 96–354, ‘‘Regulatory                                               approved by OMB under OMB Control
                                               Executive Orders. For that reason, it has                                  Flexibility Act’’ (5 U.S.C. 601)                                              Number 0704–0207 titled DD Form
                                               been reviewed by the Office of                                               The Department of Defense certifies                                         2345, Militarily Critical Technical Data
                                               Management and Budget (OMB).                                               that this proposed rule is not subject to                                     Agreement.
                                               Section 202, Public Law 104–4,                                             the Regulatory Flexibility Act (5 U.S.C.                                      Cost to the Public
                                               ‘‘Unfunded Mandates Reform Act’’                                           601) because it would not, if
                                                                                                                          promulgated, have a significant                                                 In exchange for Government-owned
                                                  Section 202 of the Unfunded                                             economic impact on a substantial                                              unclassified export controlled technical
                                               Mandates Reform Act of 1995 (UMRA)                                         number of small entities. Therefore, the                                      data and technology, a contractor
                                               (Pub. L. 104–4) requires agencies assess                                   Regulatory Flexibility Act, as amended,                                       provides basic company information,
                                               anticipated costs and benefits before                                      does not require us to prepare a                                              identifies a technical data and
                                               issuing any rule whose mandates                                            regulatory flexibility analysis.                                              technology custodian, and describes
                                               require spending in any 1 year of $100                                                                                                                   need-to-know. The reporting burden is
                                               million in 1995 dollars, updated                                           Public Law 96–511, ‘‘Paperwork                                                estimated to average 20 minutes per
                                               annually for inflation. In 2014, that                                      Reduction Act’’ (44 U.S.C. Chapter 35)                                        response. The DD Form 2345 and
                                               threshold is approximately $141                                              It has been certified that this proposed                                    supporting documentation must be
                                               million. This proposed rule would not                                      rule does impose reporting or                                                 submitted to the U.S./Canada Joint
                                               mandate any requirements for State,                                        recordkeeping requirements under the                                          Certification Office in hardcopy.
                                               local, or tribal governments, nor would                                    Paperwork Reduction Act of 1995.                                              Approximately 24,000 U.S. companies
                                               it affect private sector costs.                                            These reporting requirements have been                                        have active certifications.

                                               24,000 responses ....................................             $9.94 * per response ...............................                $19.99 postage ** per response ..............                        $638,400
                                                 * U.S. Department of Labor. Bureau of Labor Statistics. 2014 median weekly earnings of full-time workers with at least a bachelor’s degree:
                                               $1,193. http://www.bls.gov/spotlight/2015/a-look-at-pay-at-the-top-the-bottom-and-in-between/home.htm.
                                                 ** Most applicants choose Priority Mail Express Flat Rate Envelope USPS Postage Price Calculator http://postcalc.usps.com/.

                                                                                                                                     COST TO THE GOVERNMENT
                                               4 FTE registrars ............................................................         GS 9 step 5 ..................................................................                    $59,036 *          $236,144
                                               1 FTE Team Lead ........................................................              GS11 step 5 .................................................................                       71,429 *           71,429
                                               .5 FTE US Representative ...........................................                  GS13 step 5 .................................................................                       101,807            50,904
                                               .25 FTE Division Chief .................................................              GS14 step 5 .................................................................                       120,303            30,075
                                               .25 FTE Director ...........................................................          GS15 step 5 .................................................................                       35,378 *           35,378
                                               O&M for IT ....................................................................       SP4701–15–F–0031 .....................................................                            2,958,915           147,946

                                                     Total .......................................................................   .......................................................................................   ........................    571,876
                                                 * 2014 General Schedule (Base) Office of Personnel Management Salaries and Wages https://www.opm.gov/policy-data-oversight/pay-leave/
                                               salaries-wages/2014/general-schedule/.


                                               Executive Order 13132, ‘‘Federalism’’                                      250.5      Responsibilities.                                                     (2) All unclassified technical data and
                                                                                                                          250.6      Procedures.                                                        technology that discloses technology or
                                                 Executive Order 13132 establishes                                        250.7      Directly arranged visits.                                          information with military or space
                                               certain requirements that an agency
                                                                                                                             Authority: 10 U.S.C. 133.                                                  application, in the possession or under
                                               must meet when it promulgates a
                                                                                                                                                                                                        the control of a DoD Component, that
                                               proposed rule (and subsequent final                                        § 250.1       Purpose.                                                        may not be exported lawfully without
                                               rule) that imposes substantial direct
                                                                                                                            This part establishes policy, assigns                                       an approval, authorization, license,
                                               requirement costs on State and local
                                                                                                                          responsibilities, and prescribes                                              license exception, or exemption in
                                               governments, preempts State law, or
                                                                                                                          procedures for the dissemination and                                          accordance with U.S. export control
                                               otherwise has federalism implications.
                                                                                                                          withholding of certain unclassified                                           laws and regulations: 22 U.S.C. 2778
                                               This proposed rule will not have a
                                                                                                                          technical data and technology                                                 (also known as the ‘‘Arms Export
                                               substantial effect on State and local                                                                                                                    Control Act’’); 50 U.S.C. chapter 35 (also
                                               governments.                                                               consistent with the requirements of 10
                                                                                                                          U.S.C. 130.                                                                   known as the ‘‘International Emergency
                                               List of Subjects in 32 CFR Part 250                                                                                                                      Economic Powers Act’’); 22 CFR parts
                                                                                                                          § 250.2       Applicability.                                                  120–130 (also known as ‘‘International
                                                 Exports, Science and technology.
                                                                                                                             This part:                                                                 Traffic in Arms Regulations’’ (ITAR));
                                                 Accordingly, 32 CFR part 250 is                                                                                                                        and 15 CFR parts 730 through 774 (also
                                               proposed to be revised to read as                                             (a) Applies to:
                                                                                                                                                                                                        known as ‘‘Export Administration
                                               follows:                                                                      (1) The Office of the Secretary of                                         Regulations’’ (EAR)).
                                                                                                                          Defense, the Military Departments, the                                           (b) Does not modify or supplant the
                                               PART 250—WITHHOLDING OF                                                    Office of the Chairman of the Joint                                           regulations governing the export of
                                               UNCLASSIFIED TECHNICAL DATA                                                Chiefs of Staff and the Joint Staff, the
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                                                                                                                                                                                                        technical data and technology
                                               AND TECHNOLOGY FROM PUBLIC                                                 Combatant Commands, the Office of                                             established by 22 U.S.C. 2778, 50 U.S.C.
                                               DISCLOSURE                                                                 Inspector General of the Department of                                        chapter 35, 22 CFR parts 120 through
                                               Sec.
                                                                                                                          Defense, the Defense Agencies, the DoD                                        130, 10 CFR 810, and 15 CFR parts 730
                                               250.1      Purpose.                                                        Field Activities, and all other                                               through 774.
                                               250.2      Applicability.                                                  organizational entities within the DoD                                           (c) Does not apply to technical
                                               250.3      Definitions.                                                    (referred to collectively in this part as                                     information under the control of the
                                               250.4      Policy.                                                         the ‘‘DoD Components’’).                                                      Department of Energy or the Nuclear


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                                                                      Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules                                         75355

                                               Regulatory Commission pursuant to the                   Unclassified Information,’’ as                        Those technologies specified in 10 CFR
                                               Atomic Energy Act of 1954, as amended,                  implemented by volume 4 of DoD                        part 810.
                                               and the Nuclear Non-Proliferation Act                   Manual 5200.01, ‘‘DoD Information                        (4) With respect to select agents and
                                               of 1978, as amended.                                    Security Program’’ (available at http://              toxins: Those technologies specified in
                                                  (d) Does not introduce any additional                www.dtic.mil/whs/directives/corres/pdf/               7 CFR part 331, 9 CFR part 121, and 42
                                               controls on the dissemination of                        520001_vol4.pdf).                                     CFR part 73; and any other technologies
                                               technical data and technology by private                                                                      affecting the critical infrastructure.
                                               enterprises or individuals beyond those                 § 250.3    Definitions.
                                                                                                                                                                (5) With respect to emerging critical
                                               specified by export control laws and                       Unless otherwise noted, these terms                defense technology: Research and
                                               regulations or in contracts or other                    and their definitions are for the purpose             engineering development, or
                                               agreements, including certifications as                 of this part.                                         engineering and technology integration
                                               specified in paragraph (a)(9) of § 250.5.                  Certification. The United States-                  that will produce a defense article or
                                               Accordingly, the fact that DoD may                      Canada Joint Certification Program                    defense service, including its
                                               possess such technical data and                         certifies contractors of each country for             underlying technology and software,
                                               technology does not in itself provide a                 access, on an equally favorable basis, to             covered by 22 CFR parts 120 through
                                               basis for control of such technical data                unclassified technical data and                       130, or a dual-use or munitions item,
                                               and technology under this part.                         technology that discloses technology or               including its underlying technology and
                                                  (e) Does not introduce any controls on               information with military or space                    software, covered by 15 CFR parts 730
                                               the dissemination of:                                   application controlled in the United                  through 774.
                                                  (1) Scientific, educational, or other                States by this part and in Canada by                     Defense article. Defined at 22 CFR
                                               items that are not subject to the EAR or                Canada Minister of Justice, Technical                 120.6.
                                               exclusively controlled for export or                    Data Control Regulations SOR/86–345,                     Defense services. Defined at 22 CFR
                                               reexport by another department or                       May 27, 2014 current edition (available               120.9.
                                               agency pursuant to 15 CFR 734.3, 734.7                  at http://laws-lois.justice.gc.ca/PDF/                   Formal arrangement. An instrument
                                               through 734.8;                                          SOR-86-345.pdf).                                      that provides the formal authorization to
                                                  (2) Information in the public domain                    Controlling DoD office. The DoD                    establish a voluntary agreement between
                                               as described in 22 CFR 120.11 and                       activity that sponsored the work that                 two or more parties for mutual sharing
                                               technical data that has been approved                   generated the technical data and                      of resources and tasks to achieve a
                                               for release in accordance with 22 CFR                   technology or received the technical                  common set of objectives, such as The
                                               125.4(b)(13)).                                          data and technology on behalf of the                  Technical Cooperation Program.
                                                  (f) Does not alter the responsibilities              DoD and therefore is responsible for                     Legitimate business relationship. A
                                               of the DoD Components to protect                        determining the distribution of a                     relationship in which the DoD
                                               proprietary technical data and                          document containing the technical data                determines that a need exists to acquire,
                                               technology of a private party, including:               and technology. In the case of joint
                                                  (1) In which the DoD has less than                                                                         share, exchange, or disseminate DoD
                                                                                                       sponsorship, the controlling office is                technical information to anyone other
                                               unlimited rights (e.g., pursuant to 48
                                                                                                       determined by advance agreement and                   than a DoD employee for supporting the
                                               CFR 227.7202, 252.227–7013, 252.227–
                                                                                                       may be a party, a group, or a committee               DoD mission. The relationship may be
                                               7014, 252.227–7015, and 252.227.7018);
                                                                                                       representing the interested activities or             established by a memorandum of
                                               and
                                                                                                       the DoD Components.                                   understanding, agreement, contract, or
                                                  (2) That is authorized to be withheld
                                               from public disclosure pursuant to 5                       Critical technology. Technology or                 grant. The DoD has the sole
                                               U.S.C. 552, also known and referred to                  technologies essential to the design,                 responsibility for determining that a
                                               in this part as the ‘‘Freedom of                        development, production, operation,                   legitimate business relationship exists
                                               Information Act (FOIA).’’                               application, or maintenance of an                     since the only purpose is to provide
                                                  (g) Does not pertain to or affect the                defense or dual-use article or service,               access to information created by or
                                               release of technical data and technology                which makes or could make a                           under the control of the DoD.
                                               by DoD Components to foreign                            significant contribution to the military              Relationships may be established with
                                               governments, international                              potential of any country, including the               an individual or organization in another
                                               organizations or their respective                       United States (also referred to as                    Federal department or agency;
                                               representatives, or contractors pursuant                militarily critical technology). This                 contractors, grantees, or potential DoD
                                               to official agreements or formal                        includes, but is not limited to, design               contractors; other branches of the
                                               arrangements with the U.S. Government                   and manufacturing know-how, technical                 Federal Government; State and local
                                               (USG), or pursuant to USG-licensed                      data, keystone equipment including                    governments; and foreign countries.
                                               transactions involving such entities or                 manufacturing, inspection, and test                      Limited rights. The rights to use,
                                               individuals. However, in the absence of                 equipment that is required for the                    modify, reproduce, release, perform,
                                               such USG-sanctioned relationships this                  effective application of technical                    display, or disclose technical data and
                                               part does apply.                                        information and technical know-how.                   technology, in whole or in part, within
                                                  (h) Does not apply to classified                        (1) With respect to defense articles or            the government.
                                               technical data. However, after                          defense services: Those technologies                     Other legitimate business purposes.
                                               declassification, dissemination of the                  specified in 22 CFR 121.1.                            Include:
                                               technical data and technology within                       (2) With respect to categories of                     (1) Providing or seeking to provide
                                               the scope of paragraph (a)(2) of this                   systems, equipment, and components;                   equipment or technology to a foreign
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                                               section is governed by this part.                       test, inspection, and production                      government with USG approval (for
                                                  (i) Does not alter the responsibilities              equipment; materials; software; and                   example, through foreign military sale).
                                               of the DoD Components to mark and                       technology subject to the EAR: Those                     (2) Bidding, or preparing to bid, on a
                                               protect information qualifying for                      technologies specified in 15 CFR part                 sale of surplus property.
                                               designation as controlled unclassified                  774.                                                     (3) Selling or producing products for
                                               information in accordance with                             (3) With respect to nuclear                        the commercial domestic marketplace or
                                               Executive Order 13556, ‘‘Controlled                     equipment, materials, and technology:                 for the commercial foreign marketplace,


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                                               75356                  Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules

                                               providing that any required export                         (3) Acknowledges its responsibilities              on function or purpose or general
                                               license is obtained.                                    under U.S. export control laws and                    system descriptions of defense articles.
                                                  (4) Engaging in scientific research in               regulations (including the obligation,                   Technical information. Includes
                                               a professional capacity.                                under certain circumstances, to obtain                technical data and technology as
                                                  (5) Acting as a subcontractor to a                   an export license prior to the release of             defined in 15 CFR parts 730 through
                                               qualified contractor.                                   technical data and technology within                  774, as well as technical information
                                                  Potential DoD contractor. An                         the United States) and agrees that it will            that is not subject to 22 CFR parts 120
                                               individual or organization outside the                  not disseminate any export-controlled                 through 130 or 15 CFR parts 730
                                               DoD declared eligible for DoD                           technical data and technology subject to              through 774. It also includes technical
                                               information services by a sponsoring                    this part in violation of applicable                  data or computer software of any kind
                                               DoD activity.                                           export control laws and regulations.                  that can be used or adapted for use in
                                                  Public disclosure. Making technical                     (4) Agrees that, unless dissemination              the design, production, manufacture,
                                               data available without restricting its                  is permitted by paragraph (i) of § 250.6,             assembly, repair, overhaul, processing,
                                               dissemination or use.                                   it will not provide access, including                 engineering, development, operation,
                                                  Qualified contractor. A qualified U.S.               network access, to export-controlled                  maintenance, adapting, testing, or
                                               contractor or a qualified Canadian                      technical data and technology subject to              reconstruction of goods or materiel; or
                                               contractor referred to in and governed                  this part to persons other than its                   any technology that advances the state
                                               by Canada Minister of Justice, Technical                employees or persons acting on its                    of the art, or establishes a new art, in an
                                               Data Control Regulations SOR/86–345,                    behalf, and who meet the same                         area of significant military or space
                                               May 27, 2014 current edition and                        citizenship or residency requirements                 applicability in the United States. The
                                               certified in the Joint Certification                    without the permission of the DoD                     data may be in tangible form, such as a
                                               Program through acceptance of a valid                   Component that provided the technical                 blueprint, photograph, plan, instruction,
                                               DD Form 2345.                                           data and technology.                                  or an operating manual, or may be
                                                  Qualified Canadian contractor.                          (5) To the best of its knowledge,                  intangible, such as a technical service or
                                               Canadian contractors are qualified for                  knows of no person employed by it or                  oral, auditory, or visual descriptions.
                                               technical data and technology that do                   acting on its behalf who will have                    Examples of technical data include
                                               not require a license or other                          access to such data and technology, who               research and engineering data,
                                               authorization for export to Canada                      is debarred, suspended, or otherwise                  engineering drawings, and associated
                                               under 22 CFR 126.5 by submitting a                      ineligible from performing on USG                     lists, specifications, standards, process
                                               certification request to the United                     contracts; or has violated U.S. export                sheets, manuals, technical reports,
                                               States-Canada Joint Certification Office                control laws or a certification previously            technical orders, catalog item
                                               established at the Defense Logistics                    made to the DoD under the provisions                  identifications, data sets, studies and
                                               Agency, Battle Creek, Michigan, in                      of this part.                                         analyses and related information, and
                                               accordance with the ‘‘Memorandum of                        (6) Asserts that it is not debarred,               computer software.
                                               Understanding Between the                               suspended, or otherwise determined                       Technology. Defined in 15 CFR 772.1.
                                               Government of Canada and the                            ineligible by any agency of the USG to                   United States. The 50 States, the
                                               Government of the United States                         perform on USG contracts, has not been                District of Columbia, and the territories
                                               Concerning Strategic Technical                          convicted of export control law                       and possessions of the United States.
                                               Exchange’’.                                             violations, and has not been disqualified                United States-Canada Joint
                                                  Qualified U.S. contractor. A private                 under the provisions of this part.                    Certification Office. The office
                                               individual or enterprise that, in                          (7) Requests the certification be                  established to certify contractors of each
                                               accordance with procedures established                  accepted based on its description of                  country for access, on an equally
                                               by the Under Secretary of Defense for                   extenuating circumstances when the                    favorable basis, to unclassified technical
                                               Acquisition, Technology, and Logistics                  certifications required by this definition            data and technology disclosing
                                               (USD(AT&L)) and as a condition of                       cannot be made truthfully.                            technology controlled in the United
                                               obtaining export-controlled technical                      Restricted rights. The government’s                States by this part and in Canada by
                                               data and technology subject to this part                rights to use a computer program with                 Canada Minister of Justice, Technical
                                               from the DoD:                                           one computer at one time. Applicable                  Data Control Regulations SOR/86–345,
                                                  (1) Certifies that the individual who                only to noncommercial computer                        May 27, 2014 current edition.
                                               will act as recipient of the export-                    software.                                                U.S. DoD contractor. Those qualified
                                               controlled technical data and                              Technical data. Defined at 22 CFR                  U.S. contractors currently holding
                                               technology on behalf of the U.S.                        120.10.                                               grants or contracts with DoD or those
                                               contractor is a U.S. citizen or a person                   (1) Classified data relating to defense            contractors declared eligible for DoD
                                               admitted lawfully into the United States                articles and defense services on the U.S.             information services by a sponsoring
                                               for permanent residence and is located                  Munitions List;                                       DoD activity on the basis of
                                               in the United States.                                      (2) Information covered by an                      participation in a DoD Potential
                                                  (2) Certifies that such data and                     invention secrecy order; or                           Contractor Program.
                                               technology are needed to bid or perform                    (3) Software (see 22 CFR 120.45(f))
                                               on a contract with the DoD or other USG                 directly related to defense articles.                 § 250.4    Policy.
                                               agency, or for other legitimate business                   (4) The definition does not include                   It is DoD policy that:
                                               purposes in which the U.S. contractor is                information concerning general                           (a) Pursuant to 10 U.S.C. 130 and 133,
                                               engaged or plans to engage. The purpose                 scientific, mathematical, or engineering              the Secretary of Defense may withhold
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                                               for which the data and technology are                   principles commonly taught in schools,                from public disclosure any technical
                                               needed must be described sufficiently in                colleges, and universities, or                        data and technology with military or
                                               such certification to permit an                         information in the public domain as                   space application in the possession or
                                               evaluation of whether subsequent                        defined in 22 CFR 120.11 or telemetry                 under the control of the DoD, if such
                                               requests for data and technology are                    data as defined in note 3 to Category                 technical data and technology may not
                                               related properly to such business                       XV(f) of in 22 CFR part 121. It also does             be exported lawfully without a license,
                                               purpose.                                                not include basic marketing information               exception, exemption, or other export


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                                                                      Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules                                          75357

                                               authorization, in accordance with U.S.                  withheld from public disclosure                       and technology subject to this part must
                                               export control laws and regulations                     pursuant to the 5 U.S.C. 552.                         be maintained and managed consistent
                                               (including 22 U.S.C. 2778, 50 U.S.C.                       (g) This part may not be used to                   with National Archives and Records
                                               chapter 35, 22 CFR parts 120 through                    provide protection for technical data                 Administration approved dispositions
                                               130, and 15 CFR parts 730 through 774).                 that should be classified in accordance               to ensure proper maintenance, use,
                                               However, technical data and technology                  with Executive Order 13526, ‘‘Classified              accessibility, and preservation,
                                               may not be withheld if regulations                      National Security Information,’’ and                  regardless of format or medium.
                                               distributed in accordance with 22 U.S.C.                volume 1 of DoD Manual 5200.01
                                                                                                       (available at http://www.dtic.mil/whs/                § 250.5    Responsibilities.
                                               2778 authorize the export of such
                                               technical data and technology pursuant                  directives/corres/pdf/520001_vol1.pdf).                 (a) The Under Secretary of Defense for
                                               to a general unrestricted license or                       (h) This part provides immediate                   Acquisition, Technology, and Logistics
                                               exemption.                                              authority to cite section (b)(3) of 5                 (USD(AT&L)) has overall responsibility
                                                  (b) Because public disclosure of                     U.S.C. 552 (FOIA Exemption 3)                         for the implementation of this part and
                                               technical data and technology subject to                described in 32 CFR part 286 as the                   will designate an office to:
                                               this part is the same as providing                      basis for denials under 5 U.S.C. 552 of                 (1) Administer and monitor
                                               uncontrolled foreign access,                            technical data and technology currently               compliance with this part.
                                               withholding such technical data and                     determined to be subject to the                         (2) Receive and disseminate
                                               technology from public disclosure,                      provisions of this part. The technical                notifications of temporary revocation of
                                               unless approved, authorized, or licensed                data will be withheld under the                       contractor qualification in accordance
                                               in accordance with export control laws,                 authority of 10 U.S.C.130. If the                     with paragraph (e) of § 250.6.
                                               is necessary and in the national interest.              information originated or is under the                  (3) Receive recommendations for
                                                  (c) Notwithstanding the authority in                 control of a Government Agency outside                contractor disqualification made in
                                               paragraph (c)(1) of this section, it is DoD             the DoD, DoD Components will refer to                 accordance with paragraph (f) of § 250.6,
                                               policy to provide technical data and                    that Government Agency for a release                  and act as disqualification authority.
                                               technology governed by this part to                     determination.                                          (4) Provide technical assistance when
                                               individuals and enterprises that are:                      (i) Technical data and technology                  necessary to the DoD Components to
                                                  (1) Currently qualified U.S.                         subject to this part must be marked in                assess the significance of the military or
                                               contractors, when such technical data                   accordance with DoD Instruction                       space application of technical data and
                                               and technology relate to a legitimate                   5230.24, ‘‘Distribution Statements on                 technology that may be withheld from
                                               business purpose for which the                          Technical Documents’’ (available at                   public disclosure in accordance with
                                               contractor is certified; or                             http://www.dtic.mil/whs/directives/                   this part.
                                                  (2) A certified Canadian contractor                  corres/pdf/523024p.pdf) and volume 4                    (5) Maintain and update procedures
                                               referred to in and governed by Canada                   of DoD Manual 5200.01 and released in                 and appropriate mechanisms for the
                                               Minister of Justice, Technical Data                     accordance with DoD Instruction                       certification of qualified contractors, in
                                               Control Regulations SOR/86–345, May                     2040.02, ‘‘International Transfers of                 accordance with paragraph (c) of § 250.4
                                               27, 2014 current edition (available at                  Technology, Articles, and Services’’                  of this part.
                                                                                                                                                               (6) Ensure that the requirements of
                                               http://laws-lois.justice.gc.ca/PDF/SOR-                 (available at http://www.dtic.mil/whs/
                                                                                                                                                             this part are incorporated into 48 CFR
                                               86-345.pdf) and registered at the United                directives/corres/pdf/204002_2014.pdf),
                                                                                                                                                             for application to contracts involving
                                               States-Canada Joint Certification Office                DoD Directive 5230.09, ‘‘Clearance of
                                                                                                                                                             technical data and technology governed
                                               when a legitimate business relationship                 DoD Information for Public Release’’
                                                                                                                                                             by this part.
                                               has been established between the                        (available at http://www.dtic.mil/whs/                  (7) Develop, in conjunction with the
                                               government and the contractor.                          directives/corres/pdf/523009p.pdf), DoD               Office of the General Counsel of the
                                                  (d) This part may not be used by the                 Instruction 5230.29, ‘‘Security and                   Department of Defense (GC DoD),
                                               DoD Components as authority to deny                     Policy Review of DoD Information for                  guidelines for responding to appeals, as
                                               access to technical data and technology                 Public Release’’ (available at http://                identified in paragraph (k) of § 250.6.
                                               to the Congress or to any Federal, State,               www.dtic.mil/whs/directives/corres/pdf/                 (8) Develop procedures to ensure that
                                               or local government agency that requires                523029p.pdf), and 32 CFR part 285.                    the DoD Components apply consistent
                                               the technical data and technology for                      (j) Technical data and technology                  criteria in authorizing exceptions in
                                               regulatory or other official government                 subject to this part, when disseminated               accordance with paragraph (j) of § 250.6.
                                               purposes. Dissemination of the                          electronically, must be marked in                       (9) Prescribe procedures to develop,
                                               technical data and technology will                      accordance with volume 4 of DoD                       collect, and disseminate certification
                                               include a statement that DoD controls it,               Manual 5200.01 and are subject to all                 statements; to ensure their sufficiency,
                                               in accordance with this part.                           applicable security requirements                      accuracy, and periodic renewal; and to
                                                  (e) The authority in this part may not               specified in DoD Instruction 8500.01,                 make final determinations of
                                               be used to withhold from public                         ‘‘Cybersecurity’’ (available at http://               qualification.
                                               disclosure unclassified information                     www.dtic.mil/whs/directives/corres/pdf/                 (10) Take such other actions that may
                                               regarding DoD operations, policies,                     850001_2014.pdf) and Chairman of the                  be required to ensure consistent and
                                               activities, or programs, including the                  Joint Chiefs of Staff Instruction                     appropriate implementation of this part
                                               costs and evaluations of performance                    6510.01F, ‘‘Information Assurance (IA)                within the DoD.
                                               and reliability of military and space                   and Support to Computer Network                         (b) The Under Secretary of Defense for
                                               equipment. When information does                        Defense (CND),’’ February 9, 2011, as                 Policy (USD(P)):
                                               contain technical data and technology                   amended (available at http://                           (1) Prepares and issues policy
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                                               subject to this part, the technical data                www.dtic.mil/cjcs_directives/cdata/                   guidance regarding the foreign
                                               and technology must be excised from                     unlimit/6510_01.pdf).                                 disclosure and security controls for
                                               what is disclosed publicly.                                (k) In accordance with DoD                         information in international programs
                                                  (f) This part may not be used as a                   Instruction 5015.02, ‘‘DoD Records                    within the scope of this part.
                                               basis for the release of limited rights or              Management Program’’ (available at                      (2) Provides consultation to DoD
                                               restricted rights data as defined in 48                 http://www.dtic.mil/whs/directives/                   offices on export control and
                                               CFR or those that are authorized to be                  corres/pdf/501502p.pdf), technical data               commodity jurisdiction determinations.


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                                               75358                  Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules

                                                 (c) The Deputy Chief Management                       Instruction 5230.29. DoD has the                      in accordance with 22 U.S.C. 2778, 50
                                               Officer (DCMO) of the Department of                     authority to withhold technical data and              U.S.C. chapter 35, 22 CFR parts 120
                                               Defense:                                                technology as defined in § 250.3 from                 through 130, and 15 CFR parts 730
                                                 (1) Monitors the implementation of                    public disclosure.                                    through 774.
                                               the provisions of this part that pertain                   (2) DoD Components will process                      (iii) The information would not fall
                                               to 5 U.S.C. 552 and 32 CFR part 285.                    FOIA requests from the public for                     into the categories of information
                                                 (2) Provides such other assistance as                 technical information in accordance                   described in paragraphs (c) and (d) of
                                               may be necessary to ensure compliance                   with 32 CFR part 286 and governing                    § 250.2.
                                               with this part.                                         DoD Component issuances. All                            (2) In making such a determination,
                                                 (d) The GC DoD:                                       requested technical data and technology               the controlling office may consult with
                                                 (1) Advises DoD Components with                       currently determined to be subject to the             the Defense Technology Security
                                               respect to the statutory and regulatory                 withholding authority in this part will               Administration for advice on whether
                                               requirements governing the export of                    be denied under Exemption 3 of 5                      U.S. export control laws or regulations
                                               technical data and technology.                          U.S.C. 552 and 10 U.S.C. 130. Any FOIA                apply. The controlling DoD office may
                                                 (2) Advises the USD(AT&L) regarding                   appeals for the denied information will               request assistance in making this
                                               consistent and appropriate                              be processed in accordance with 32 CFR                determination from the USD(AT&L),
                                               implementation of this part.                            part 286 and governing DoD Component                  and if necessary, consult the
                                                 (e) The DoD Component heads:                          issuances.                                            Departments of State, Commerce, or
                                                 (1) Disseminate and withhold from                        (3) DoD Components may give                        Energy.
                                               public disclosure technical data and                    qualified contractors access to their                   (c) The controlling DoD office will
                                               technology subject to this part                         technical data and technology as                      ensure technical data and technology
                                               consistent with its policies and                        permitted by the provisions of this part.             governed by this part are marked for
                                               procedures.                                                (i) United States-Canada Joint                     distribution in accordance with DoD
                                                 (2) Designate a focal point to:                       Certification Office adjudicates                      Instruction 5230.24 and volume 4 of
                                                 (i) Ensure implementation of this part.               certification of qualified contractors.               DoD Manual 5200.01.
                                                 (ii) Identify classes of technical data                  (ii) To qualify, U.S. and Canadian                   (d) The controlling DoD office will
                                               and technology whose release are                        contractors must submit a completed                   authorize release of technical data and
                                               governed by paragraph (d)(3) of § 250.6.                DD Form 2345 ‘‘Militarily Critical                    technology governed by this part to
                                                 (iii) Act on appeals relating to case-                Technical Data Agreement,’’ to the                    qualified contractors, as defined in
                                               by-case denials for release of technical                United States-Canada Joint Certification              § 250.3, unless either:
                                               data and technology.                                    Office.                                                 (1) The qualification of the contractor
                                                 (iv) Temporarily revoke a contractor’s                   (iii) To qualify, Canadian contractors             concerned has been temporarily revoked
                                               qualification in accordance with                        will submit a completed DD Form 2345                  in accordance with paragraph (e) of this
                                               paragraph (e) of § 250.6.                               when a Canadian contractor intends to                 section;
                                                 (v) Receive and evaluate requests for                 request access to DoD-controlled                        (2) The controlling DoD office judges
                                               reinstatement of a contractor’s                         technical data and technology.                        the requested technical data and
                                               qualification in accordance with                           (iv) A copy of the company’s State/                technology to be unrelated to the
                                               paragraph (e)(4) of § 250.6.                            Provincial Business License,                          purpose for which the qualified
                                                 (vi) Recommend contractor’s                           Incorporation Certificate, Sales Tax                  contractor is certified. When release of
                                               disqualification to the USD(AT&L) in                    Identification Form, ITAR Controlled                  technical data and technology is denied
                                               accordance with paragraph (f) of § 250.6.               Goods Registration letter or certificate,             in accordance with this paragraph, the
                                                 (3) Develop, distribute, and effect                   or other documentation that verifies the              controlling DoD office will request
                                               Component regulations to implement                      legitimacy of the company must                        additional information to explain the
                                               this part.                                              accompany all DD Forms 2345.                          intended use of the requested technical
                                                 (4) Ensure that the controlling DoD                      (v) The contractor’s business activity             data and technology and, if appropriate,
                                               office that created or sponsored the                    is a key element of the certification                 request a new certification (see § 250.3)
                                               technical information exercises its                     process since this information is used                describing the intended use of the
                                               inherently governmental responsibility                  by the controlling office as a basis for              requested technical data and
                                               to determine the appropriate marking in                 approving or disapproving specific                    technology; or
                                               accordance with DoD Instruction                         requests for technical data and                         (3) The technical data and technology
                                               5230.24 and volumes 2 and 4 of DoD                      technology. The business activity                     are being requested for a purpose other
                                               Manual 5200.01 (volume 2 available at                   statement should be sufficiently                      than to permit the requester to bid or
                                               http://www.dtic.mil/whs/directives/                     detailed to support requests for any data             perform on a contract with the DoD or
                                               corres/pdf/520001_vol2.pdf) and that all                that the contractor expects for legitimate            other USG agency. In this case, the
                                               technical documents, including                          business purposes.                                    controlling DoD office will withhold the
                                               research, development, engineering,                        (b) Upon receipt of a request for                  technical data and technology if the
                                               test, sustainment, and logistics                        technical information in the possession               DoD Component focal point determines
                                               information, regardless of media or                     of, or under the control of the DoD, the              the release of the technical data and
                                               form, are marked correctly.                             controlling DoD office for the requested              technology may jeopardize an important
                                                                                                       information will determine whether the                technological or operational military
                                               § 250.6   Procedures.                                   information is governed by this part.                 advantage of the United States.
                                                 (a) Procedures for release of technical                                                                       (e) Upon receipt of substantial and
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                                                                                                          (1) The determination will be based
                                               information must be made under the                      on whether                                            credible information that a qualified
                                               following guidelines:                                      (i) The information is subject to 22               U.S. contractor has violated U.S. export
                                                 (1) DoD Components may make their                     CFR part 121 or 15 CFR part 774.                      control law; violated its certification;
                                               technical information for other than                       (ii) The information would require a               made a certification in bad faith; or
                                               military or space application available                 license, exception, exemption, or other               omitted or misstated material fact, the
                                               for public disclosure in accordance with                export authorization in accordance with               DoD Component will temporarily
                                               DoD Directive 5230.09 and DoD                           U.S. export control laws and regulations              revoke the U.S. contractor’s


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                                                                      Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules                                          75359

                                               qualification. Canadian contractors are                   (4) Any U.S. contractor whose                         (h) Charges for copying, certifying,
                                               disqualified in accordance with Canada                  qualification has been temporarily                    and searching records rendered to
                                               Minister of Justice, Technical Data                     revoked may present information to the                requesters will be levied in accordance
                                               Control Regulations SOR/86–345, May                     DoD Component showing that the basis                  with chapter 4, appendix 2 of volume
                                               27, 2014 current edition.                               for revocation was in error or has been               11A of DoD 7000.14–R, ‘‘Department of
                                                 (1) The DoD Component may delay                       remedied and be reinstated.                           Defense Financial Management
                                                                                                                                                             Regulations (FMRs)’’ (available at http://
                                               such temporary revocations with the                       (f) When the basis for a contractor’s
                                                                                                                                                             comptroller.defense.gov/Portals/45/
                                               potential to compromise a USG                           temporary revocation cannot be                        documents/fmr/Volume_11a.pdf).
                                               investigation.                                          removed within 20 working days, the                   Normally, only one copy of the same
                                                 (2) Immediately upon a temporary                      DoD Component will recommend to the                   record or document will be provided to
                                               revocation, the DoD Component will                      USD(AT&L) that the contractor be                      each requester. Each release to qualified
                                               notify the contractor and the                           disqualified.                                         contractors of controlled technical data
                                               USD(AT&L).                                                (g) After receipt of substantial and                and technology governed by this part
                                                 (3) The contractor will be given an                   credible information that a qualified                 will be accompanied by a ‘‘Notice to
                                               opportunity to respond in writing to the                U.S. contractor has violated U.S. export              Accompany the Dissemination of
                                               information upon which the temporary                    control law, the DoD Component must                   Export-Controlled Technical Data and
                                               revocation is based before being                        notify the appropriate law enforcement                Technology’’ (see Figure to § 250.6(h)).
                                               disqualified.                                           agency.                                               BILLING CODE 5001–06–P
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                                               75360                  Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules

                                                        Figure to§ 250.6(h}-Example of the Notice to Accompany Export-Controlled Technical
                                                                                      Data and Technology

                                                           1. Export of information contained herein, including release to foreign nationals within the
                                                           United States, without first obtaining approval or license from the Department of State for items
                                                           controlled by the International Traffic in Arms Regulations (ITAR), or the Department of
                                                           Commerce for items controlled by the Export Administration Regulations (EAR), may constitute
                                                           a violation of law.

                                                           2. Under 22 U.S.C. §2778 the penalty for unlawful export of defense articles controlled under the
                                                           ITAR is not more than 20 years imprisonment, a fine of$1,000,000, or both.

                                                           3. Under 50 U.S.C. §1705 and 15 CFR §764.3, as adjusted for inflation by 15 CFR §6.4, the
                                                           penalty for persons who violate, attempt or conspire to violate, or cause a violation of the EAR,
                                                           while the EAR is continued in effect by Executive Order under the International Emergency
                                                           Economic Powers Act, may include civil penalties of not more than $284,582 per transaction
                                                           (subject to further adjustment for inflation) or twice the amount of the transaction, whichever is
                                                           greater and criminal penalties of not more than $1,000,000, imprisonment of not more than 20
                                                           years, or both. Violations of the EAR may also result in the denial of export privileges.

                                                           5. In accordance with the certification that establishes you as a "qualified contractor,"
                                                           unauthorized dissemination of this information is prohibited and may result in disqualification as
                                                           a qualified contractor, and may be considered in determining your eligibility for future contracts
                                                           with the Department of Defense.

                                                           6. The U.S. Government assumes no liability for direct patent infringement, contributory patent
                                                           infringement, or misuse of technical data and technology.

                                                           7. The U.S. Government does not warrant the adequacy, accuracy, currency, or completeness of
                                                           the technical data.

                                                           8. The U.S. Government assumes no liability for loss, damage, or injuries resulting from
                                                           manufacture or use for any purpose of any product, article, system, or material involving
                                                           reliance upon any or all technical data and technology furnished in response to the request for
                                                           technical data and technology.

                                                           9. If the technical data and technology furnished by the government will be used for commercial
                                                           manufacturing or other profit potential, a license for such use may be necessary. Any payments
                                                           made in support of the request for data and technology do not include or involve any license
                                                           rights.

                                                           10. A copy of this notice must be provided with any partial or complete reproduction of these
                                                           technical data and technology that are provided to qualified contractors.
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                                               BILLING CODE 5001–06–C                                    (i) Qualified U.S. contractors who                  governed by this part may disseminate
                                                                                                       receive technical data and technology                 that technical data and technology for
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                                                                      Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Proposed Rules                                          75361

                                               purposes consistent with their                          process to facilitate directly arranged               ENVIRONMENTAL PROTECTION
                                               certification without the permission of                 visits that involve access to unclassified            AGENCY
                                               the controlling DoD office or when                      technical data and technology.
                                               dissemination is:                                       Activities under this process are limited             40 CFR Part 52
                                                 (1) To any foreign recipient for which                to:                                                   [EPA–R08–OAR–2016–0620; FRL–9954–67–
                                               the technical data and technology are                      (1) Procurement activities such as                 Region 8]
                                               approved, authorized, or licensed in                    unclassified pre-solicitation
                                               accordance with 22 U.S.C. 2778 or 15                    conferences, discussions related to                   Approval and Promulgation of Air
                                               CFR parts 730 through 774.                              unclassified solicitations, and collection            Quality Implementation Plans; State of
                                                 (2) To another qualified U.S.                         of procurement unclassified documents.                Utah; Revisions to Nonattainment
                                               contractor including existing or                                                                              Permitting Regulations
                                               potential subcontractors, but only                         (2) Performance of an unclassified
                                               within the scope of the certified                       contract.                                             AGENCY:  Environmental Protection
                                               legitimate business purpose of the                         (3) Scientific research, in support of             Agency (EPA).
                                               recipient.                                              unclassified U.S. or Canadian national                ACTION: Proposed rule.
                                                 (3) To the Departments of State and                   defense initiatives.
                                               Commerce to apply for approvals,                           (4) Attendance at restricted meetings,             SUMMARY:   The Environmental Protection
                                               authorizations, or licenses for export                  conferences, symposia, and program                    Agency (EPA) is proposing to
                                               pursuant to 22 U.S.C. 2778 or 15 CFR                    briefings where technical data and                    conditionally approve State
                                               parts 730 through 774. The application                  technology governed by this part or                   Implementation Plan (SIP) revisions
                                               will include a statement that the                       Canada Minister of Justice, Technical                 submitted by the state of Utah on
                                               technical data and technology for which                 Data Control Regulations SOR/86–345,                  August 20, 2013, with supporting
                                               the approval, authorization, or license is              May 27, 2014 current edition will be                  administrative documentation
                                               sought is controlled by the DoD in                      presented, or the event is being held in              submitted on September 12, 2013. These
                                               accordance with this part.                              an unclassified access controlled area.               submittals revise the Utah
                                                 (4) To the Congress or any Federal,                                                                         Administrative Code (UAC) that pertain
                                               State, or local governmental agency for                    (b) A directly arranged visit does not             to the issuance of Utah air quality
                                               regulatory purposes or otherwise as may                 apply to uncertified U.S. or Canadian                 permits for major sources in
                                               be required by law or court order. Any                  contractors; classified visits, where                 nonattainment areas. The EPA proposes
                                               such dissemination will include a                       confirmation of the visitors’ security                a conditional approval because while
                                               statement that the technical data and                   clearances is required; or unsolicited                the submitted revisions to Utah’s
                                               technology are controlled by the DoD in                 marketing visits.                                     nonattainment permitting rules do not
                                               accordance with this part.                                 (c) A directly arranged visit related to           fully address the deficiencies in the
                                                 (j) A qualified contractor desiring to                the release of information controlled in              state’s program, Utah has committed to
                                               disseminate technical data and                          the United States by this part or in                  address additional remaining
                                               technology subject to this part in a                    Canada by Canada Minister of Justice,                 deficiencies in the state’s nonattainment
                                               manner not permitted expressly by the                   Technical Data Control Regulations                    permitting program no later than a year
                                               terms of this part must be granted                      SOR/86–345, May 27, 2014 current                      from the EPA finalizing this conditional
                                               authority to do so by the controlling                   edition, is permitted when two                        approval. If finalized, and upon the EPA
                                               DoD office, consistent with U.S. export                 conditions are satisfied.                             finding a timely meeting of this
                                               control laws and regulations specified                     (1) First condition:                               commitment in full, the proposed
                                               in 22 U.S.C. 2778, 50 U.S.C. chapter 35,                                                                      conditional approval of the SIP
                                                                                                          (i) There is a valid license covering
                                               22 CFR parts 120 through 130, and 15                                                                          revisions would convert to a final
                                                                                                       the export of the technical data and
                                               CFR parts 730 through 774 and DoD                                                                             approval of Utah’s plan. This action is
                                                                                                       technology;
                                               policies.                                                                                                     being taken under section 110 of the
                                                 (k) Any requester denied technical                       (ii) The export or release is permitted            Clean Air Act (CAA) (Act).
                                               data and technology or any qualified                    under the Canadian exemption on 22
                                                                                                                                                             DATES: Written comments must be
                                               U.S. contractor denied permission to                    CFR 126.5;
                                                                                                                                                             received on or before November 30,
                                               disseminate such technical data and                        (iii) The export or release is covered             2016.
                                               technology in accordance with this part                 by the general exemptions in 22 CFR
                                               will be promptly provided with a                        125.4; or                                             ADDRESSES:   Submit your comments,
                                               written statement of reasons for that                                                                         identified by EPA–R08–OAR–2016–
                                                                                                          (iv) The export or release qualifies for           0620 at http://www.regulations.gov.
                                               action, and advised of the right to make                a license exception under 15 CFR parts
                                               a written appeal to a specifically                                                                            Follow the online instructions for
                                                                                                       730 through 774.                                      submitting comments. Once submitted,
                                               identified appellate authority within the
                                               DoD Component. Other appeals will be                       (2) Second condition:                              comments cannot be edited or removed
                                               processed as directed by the                               (i) The distribution statement applied             from regulations.gov. The EPA may
                                               USD(AT&L).                                              to the technical data and technology                  publish any comment received to its
                                                 (l) Denials will cite 10 U.S.C. 130 and               pursuant to DoD Instruction 5230.24                   public docket. Do not submit
                                               133 as implemented by this part.                        permits release; or                                   electronically any information you
                                               Implementing procedures will provide                       (ii) The originator or government                  consider to be Confidential Business
                                                                                                                                                             Information (CBI) or other information
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                                               for resolution of any appeal within 20                  controlling office authorizes release.
                                               working days.                                                                                                 whose disclosure is restricted by statute.
                                                                                                         Dated: October 26, 2016.                            Multimedia submissions (audio, video,
                                               § 250.7   Directly arranged visits.                     Aaron Siegel,                                         etc.) must be accompanied by a written
                                                 (a) USG officials and certified U.S.                  Alternate OSD Federal Register Liaison                comment. The written comment is
                                               contractors and Canadian government                     Officer, Department of Defense.                       considered the official comment and
                                               officials and certified Canadian                        [FR Doc. 2016–26236 Filed 10–28–16; 8:45 am]          should include discussion of all points
                                               contractors may use the certification                   BILLING CODE 5001–06–P                                you wish to make. The EPA will


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Document Created: 2018-02-02 12:13:45
Document Modified: 2018-02-02 12:13:45
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by December 30, 2016.
ContactVakare Valaitis, 703-767-9159.
FR Citation81 FR 75352 
RIN Number0790-AI73
CFR AssociatedExports and Science and Technology

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