81_FR_83350 81 FR 83126 - Amendment to the International Traffic in Arms Regulations: Revision of U.S. Munitions List Categories VIII and XIX

81 FR 83126 - Amendment to the International Traffic in Arms Regulations: Revision of U.S. Munitions List Categories VIII and XIX

DEPARTMENT OF STATE

Federal Register Volume 81, Issue 224 (November 21, 2016)

Page Range83126-83135
FR Document2016-27775

As part of the President's Export Control Reform (ECR) initiative, the Department of State amends the International Traffic in Arms Regulations (ITAR) to revise Categories VIII (aircraft and related articles) and XIX (gas turbine engines and associated equipment) of the U.S. Munitions List (USML) to describe more precisely the articles warranting control on the USML. The revisions contained in this rule are part of the Department of State's retrospective plan under E.O. 13563.

Federal Register, Volume 81 Issue 224 (Monday, November 21, 2016)
[Federal Register Volume 81, Number 224 (Monday, November 21, 2016)]
[Rules and Regulations]
[Pages 83126-83135]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27775]


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DEPARTMENT OF STATE

22 CFR Part 121

RIN 1400-AD89
[Public Notice: 9604]


Amendment to the International Traffic in Arms Regulations: 
Revision of U.S. Munitions List Categories VIII and XIX

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: As part of the President's Export Control Reform (ECR) 
initiative, the Department of State amends the International Traffic in 
Arms Regulations (ITAR) to revise Categories

[[Page 83127]]

VIII (aircraft and related articles) and XIX (gas turbine engines and 
associated equipment) of the U.S. Munitions List (USML) to describe 
more precisely the articles warranting control on the USML. The 
revisions contained in this rule are part of the Department of State's 
retrospective plan under E.O. 13563.

DATES: This final rule is effective on December 31, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2792; email [email protected]. ATTN: ITAR 
Amendment--USML Categories VIII and XIX.

SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls 
(DDTC), U.S. Department of State, administers the International Traffic 
in Arms Regulations (ITAR) (22 CFR parts 120-130). The items subject to 
the jurisdiction of the ITAR, i.e., ``defense articles,'' are 
identified on the ITAR's U.S. Munitions List (USML) (22 CFR 121.1). 
With few exceptions, items not subject to the export control 
jurisdiction of the ITAR are subject to the jurisdiction of the Export 
Administration Regulations (``EAR,'' 15 CFR parts 730-774, which 
includes the Commerce Control List (CCL) in Supplement No. 1 to Part 
774), administered by the Bureau of Industry and Security (BIS), U.S. 
Department of Commerce. Both the ITAR and the EAR impose license 
requirements on exports and reexports. Items not subject to the ITAR or 
to the exclusive licensing jurisdiction of any other set of regulations 
are subject to the EAR.
    All references to the USML in this rule are to the list of defense 
articles controlled for the purpose of export or temporary import 
pursuant to the ITAR, and not to the defense articles on the USML that 
are controlled by the Bureau of Alcohol, Tobacco, Firearms and 
Explosives (ATF) for the purpose of permanent import under its 
regulations. See 27 CFR part 447. Pursuant to section 38(a)(1) of the 
Arms Export Control Act (AECA), all defense articles controlled for 
export or import are part of the USML under the AECA. The list of 
defense articles controlled by ATF for the purpose of permanent import 
is the U.S. Munitions Import List (USMIL). The transfer of defense 
articles from the ITAR's USML to the EAR's CCL does not affect the list 
of defense articles controlled on the USMIL.

Revision of Category VIII

    This final rule revises USML Category VIII, covering aircraft and 
related articles. The revisions are undertaken in order to ensure that 
the category, which was last revised in 2013, is clear, does not 
inadvertently control items in normal commercial use, accounts for 
technological developments, and properly implements the national 
security and foreign policy objectives of the ECR initiative. The 
Department published a proposed rule for these revisions, as well as 
the revisions to Category XIX described below, on February 9, 2016 (81 
FR 6797).
    Paragraph (a) is revised to clarify that the controls for all 
paragraphs are applicable ``whether manned, unmanned, remotely piloted, 
or optionally piloted,'' by modifying paragraph (a)(5) to clarify the 
design feature meriting USML control, and by deleting paragraph (a)(6) 
and placing it into reserve, because the relevant control is subsumed 
by revised paragraph (a)(5). Paragraphs (a)(7), (a)(8), and (a)(9) are 
modified to clarify the respective design features meriting USML 
control. The text of paragraphs (a)(11) and (a)(13) is deleted and the 
paragraphs are placed into reserve. Paragraph (a)(14) is modified to 
exclude L-100 and LM-100J aircraft from the scope of control. Note 2 to 
paragraph (a) is revised to clarify the definition of the described 
term.
    Paragraph (d) is modified to delete the ``ship-based'' control 
parameter and to clarify the intent and scope of the control.
    Paragraph (e) reflects having been placed into reserve in the final 
rule published by the Department on October 12, 2016 (81 FR 70340).
    Notes 1 and 3 to paragraph (f) are modified to incorporate 
clarifying language.
    Several changes are made to paragraph (h). Paragraph (h)(1) is 
revised to update the list of subject platforms, and to delete the 
reference to ``equipment'' because the specific types of equipment that 
warrant ITAR control are now enumerated separately in paragraph 
(h)(29). The Note to paragraph (h)(1) is modified to incorporate 
technical corrections and to enhance the clarity of the note. Paragraph 
(h)(2) is revised to focus the scope of control on certain rotorcraft 
gearboxes meeting specific technical parameters, and a note to 
paragraph (h)(2) is added to clarify certain terminology used therein. 
Paragraph (h)(4)(ii) is modified to clarify the scope of control. 
Paragraph (h)(5) is updated to add the words ``On-aircraft'' in order 
to clarify the scope of control, while paragraph (h)(6) is updated to 
add the words ``or rocket'' after ``missile.'' Paragraph (h)(7) is 
modified to clarify the scope of control. Paragraph (h)(8) is modified 
to clarify the meaning of ``threat-adaptive autonomous flight control 
systems.'' Paragraph (h)(10) is modified to enhance the clarity of the 
control text. Paragraph (h)(13) is deleted and placed into reserve. 
Paragraph (h)(16) is modified to incorporate a technical correction. 
Paragraph (h)(18) is modified to control parts and components that are 
specially designed to meet the same performance criteria as the systems 
identified in the paragraph. Paragraph (h)(19) is modified to remove 
reference to ECCN 9A610.
    Current paragraphs (h)(23) through (h)(26) are placed into reserve, 
with new controls added as paragraphs (h)(27) through (h)(29). Finally, 
the note to Category VIII is modified to update the paragraphs of 
paragraph (h) that are affected, as well as to reflect paragraph (e) 
having been placed into reserve.
    A commenting party expressed concern that the objective of the USML 
review process, first announced in a Notice of Inquiry on March 2, 2015 
(80 FR 11314), is to reconsider or reverse the effect of the ECR 
initiative. The Department clarifies that the purpose of the USML 
review process is to review and update the subject USML categories, as 
needed, to account for technological developments, practical 
application issues identified by exporters and reexporters, and changes 
in the military and commercial applications of items affected by the 
list. The ``positive list'' structure adopted in each of the revised 
USML categories requires an ongoing process of review in order to 
ensure that the list is current and reflective of the modern state of 
the subject technology. This ongoing effort has been anticipated since 
the start of the ECR initiative and is not intended to reconsider or 
reverse the effort.
    A commenter requested clarification as to why paragraph (h)(2) had 
been removed from the Note to Category VIII. Paragraph (h)(2) has been 
revised significantly to control only a class of rotorcraft gearboxes 
for which there is no current civil application. Given the reduced 
scope of control in the revised paragraph (h)(2), inclusion in the Note 
to Category VIII is no longer appropriate.
    Three commenting parties recommended that paragraph (a)(5) be 
deleted, given the proposed reference to ``unmanned'' aircraft in 
paragraph (a), while an additional commenter suggested that the 
proposed paragraph (a)(5) was less clear than the existing version of 
the same paragraph. In light of these comments, the Department modified 
the paragraph to control only those unmanned aerial vehicles that are

[[Page 83128]]

specially designed to incorporate a defense article, in order to focus 
the paragraph on the intended scope of control. The Department 
disagrees with the commenters recommending deletion of the paragraph, 
as there is continuing oversight utility in maintaining a clear, 
enumerated control for unmanned aerial vehicles that are specially 
designed to incorporate a defense article, particularly in light of the 
unique considerations for these aircraft as set forth in the 
Department's policy on unmanned aerial systems.
    Two commenters suggested that the proposed revisions to paragraph 
(a)(7) were less clear than the existing version of the same paragraph, 
and could potentially capture an overly broad scope of aircraft with 
intelligence, surveillance, and reconnaissance (ISR) capabilities where 
such aircraft incorporate a defense article. The Department agreed with 
these commenters and revised the paragraph to control only those 
aircraft that are specially designed to incorporate a defense article 
for the purpose of performing an intelligence, surveillance, and 
reconnaissance function, in order to better focus the scope of control 
and exclude certain aircraft that merely incorporate a defense article.
    One commenter expressed concern that proposed paragraph (a)(8) 
would control technical data for electronic warfare or command, 
control, and communication aircraft that simply incorporated a defense 
article, while another party requested clarification of these terms as 
well as the significant military equipment (SME) designation for this 
paragraph. The Department notes that command, control, and 
communication systems are currently designated as SME in USML Category 
XI, so analogous treatment is appropriate in this paragraph. While the 
Department has not defined the referenced terms, as there were no 
examples provided of demonstrated uncertainty in the regulated 
community, the scope of the paragraph has been revised to control only 
those referenced aircraft types that are specially designed to 
incorporate a defense article for the purpose of performing a 
referenced function.
    A commenting party recommended the replacement of each instance of 
the words ``capable of'' with ``equipped to'' or ``designed for,'' as 
appropriate in the context of the paragraph at issue. The Department 
reviewed each paragraph in which these words appeared and made the 
appropriate revisions where the paragraph did not otherwise provide 
technical parameters or performance criteria that sufficiently 
constrained and identified the class of articles subject to control.
    Three commenters suggested that paragraph (a)(14) be revised to 
limit the scope of control to aircraft with uniquely military 
capabilities, to the exclusion of aircraft platforms such as the L-100 
and LM-100J. One commenter asserted that the systems and functions that 
make the C-130J a sophisticated military platform are removed on the 
LM-100J, and that militarization of the latter platform would be very 
difficult. In response to these comments, the Department revised 
paragraph (a)(14) to exclude the L-100 and LM-100J aircraft.
    A commenting party requested clarification regarding the 
classification of parts and components that are not enumerated or 
otherwise described on the USML, and are common to the C-130 and the L-
100 aircraft. As with all parts and components classification concerns, 
the commenter is advised to follow the standard order of review 
guidance provided on the DDTC Web site (see http://pmddtc.state.gov/faqs/ecr.html#b). Where an item is described in multiple entries, an 
enumerated entry takes precedence over an entry controlling the item by 
virtue of a specially designed catch-all. The exception to this rule is 
where a SME entry is involved. In all situations, a SME entry will take 
precedence over a non-SME entry. If, through the order of review, one 
determines a particular item is not specifically enumerated in the 
USML, it may still be controlled by virtue of its parts and components, 
which are caught via a catch-all. For example, a part or component of 
an airborne radar system specially designed for the F-35 may not be 
enumerated or captured in USML Category XI but will be controlled under 
the specially designed catch-all of Category VIII(h)(1). If the article 
does not appear to fall under any USML paragraph or paragraph, consult 
the EAR to complete the classification inquiry.
    A commenter recommended the deletion of paragraph (a)(15)(ii), 
based on the observation that paragraphs (a)(1) through (a)(14) do not 
specify whether the subject aircraft is of U.S. or foreign origin. The 
Department notes that paragraph (a)(15)(ii) follows paragraph 
(a)(15)(i), which captures aircraft not otherwise enumerated in 
paragraph (a) but bearing any enumerated military designation. Since 
foreign-origin aircraft would not bear a U.S. military designation, 
paragraph (a)(15)(ii) exists to capture the foreign equivalents of the 
U.S.-origin aircraft controlled by paragraph (a)(15)(i).
    One commenting party recommended a revision of paragraph (d) to 
limit its scope to launching and recovery equipment for aircraft 
controlled in paragraph (a) that meet a minimum weight threshold, so as 
to exclude small UAVs. The Department disagreed with this 
recommendation, noting that the paragraph controls only launching and 
recovery equipment that is specially designed to allow a subject 
aircraft to land on a vessel described in Category VI(a)-(c). This 
language controls a sufficiently narrow class of aircraft and 
adequately excludes many small UAV platforms.
    A commenter expressed concern regarding the removal of the word 
``equipment'' from paragraph (h)(1), as it potentially confuses the 
jurisdiction of such equipment. To clarify the scope of controlled 
equipment and avoid a perception that equipment designed for aircraft 
enumerated in paragraph (h)(1) is per se controlled in the same 
paragraph, the Department created proposed paragraph (h)(30), which 
appears in this final rule as paragraph (h)(29), to specify the 
specific types of equipment that warrant USML control.
    A commenting party recommended the exclusion from paragraph (h)(1) 
of those parts identified in ECCNs 9A610.y or 9A619.y. The Department 
disagreed with this recommendation. The structure of CCL controls is 
distinguishable from those in the USML, with the CCL utilizing 
``reasons for control'' and country licensing policies that are not 
available under the ITAR or AECA. As such, provisions from the CCL 
cannot easily be adopted for the purposes of the USML. Given the unique 
policy considerations applicable to the enumerated aircraft in 
paragraph (h)(1) and their low observable/counter low observable 
capabilities, the Department declines to exclude classes of parts and 
components for these highly sensitive platforms.
    One commenter recommended that paragraph (h)(2) be revised to 
control only those rotorcraft gearboxes that are qualified to a 
particular military standard. The Department disagreed with this 
comment, because military standards are not developed and published to 
advance export control-related objectives and may be revised frequently 
for reasons unrelated to export controls, which may additionally reduce 
the clarity of the USML through successive iterations of revisions to 
these standards.
    Two commenters asserted that individual performance criteria 
specific in paragraph (h)(2) are not uniquely military in nature. The 
Department notes that both criteria are required for

[[Page 83129]]

control, and it is the combination of the two specified criteria that 
makes the controlled article militarily significant. No examples were 
provided of commercial items capable of meeting both performance 
criteria.
    A commenter suggested that tail boom folding systems controlled 
under paragraph (h)(3) could be useful in civil applications to 
optimize the use of space. The Department did not revise the control 
because the commenter did not provide an example of a current civil 
application for the articles controlled in this paragraph.
    A commenter recommended that paragraph (h)(5) be reviewed in 
concert with ECCN 9A610.e to ensure that the two entries did not 
overlap. The Department reviewed the entries and made no change to the 
paragraph, as it is sufficiently limited in scope to on-aircraft 
arresting gear and excludes arresting gear used on the ground.
    One commenting party recommended that paragraph (h)(6) be revised 
to control ``rocket launchers'' in addition to ``missile launchers,'' 
and further recommended criteria to exclude from control certain 
airborne UAV launching capabilities. The Department agreed with the 
addition of ``rocket launchers'' and revised the paragraph accordingly. 
However, the Department disagreed with the recommended airborne 
launching criteria, as the ability to deploy a UAV from an aircraft in 
flight is a current military capability.
    A commenting party suggested that the Department had not offered a 
sufficient rationale to move to the USML specially designed parts and 
components for the systems controlled in paragraph (h)(7). The 
Department agreed with this comment and deleted the proposed addition. 
The disposition of the relevant parts and components will be addressed 
in the Department of Commerce's companion rule.
    A commenting party recommended that paragraph (h)(8) be merged with 
paragraph (h)(12), in order to create a single paragraph for flight 
control systems that excludes commercial UAV ``sense-and-avoid'' 
capabilities. The Department observes that the ability of the subject 
UAVs to ``avoid collisions'' is only one aspect of the control 
parameter, which also requires the capability to ``stay together'' by 
virtue of the subject flight control system. No example has been 
presented of a commercial UAV flight control system that provides the 
capability for multiple UAVs to both ``avoid collisions'' and ``stay 
together.'' Accordingly, the Department did not revise the paragraph.
    One commenter suggested that paragraph (h)(10) include a note, 
similar to the Note to Category XI(a)(3), indicating that the paragraph 
does not control radio altimeter equipment conforming to Federal 
Aviation Administration TSO-C87. The Department did not add this note 
to paragraph (h)(10), because commercial altimeters conforming to this 
standard would not possess either of the low probability of intercept 
capabilities described in the paragraph. Since current commercial 
altimeters cannot meet the criteria of paragraph (h)(10), it is not 
necessary to include a note that would impact only these commercial 
items.
    Three commenting parties suggested that the Department had not 
offered a sufficient rationale to move to the USML specially designed 
parts and components for the systems controlled in paragraph (h)(18). 
The Department partially agreed with this comment and revised the 
proposed addition. The only parts and components added to paragraph 
(h)(18) are those that are specially designed to function after impact 
of a 7.62 mm or larger projectile. This is the same criterion that 
applies to the drive systems and flight control systems subject to 
control under this paragraph; thus, this paragraph unifies the articles 
subject to control under a common parameter of military criticality.
    Two commenters recommended revisions to enhance the clarity of 
paragraph (h)(20). This paragraph pertains to classified defense 
articles and classified information, and replicates the structure of 
similar entries in other revised USML categories that are outside of 
the scope of this rule. To maintain conformity with those entries, the 
Department has noted these commenters' recommendations and will 
reconsider them in the context of a later review of all USML entries 
relating to classified defense articles and classified information.
    Four commenting parties asserted that the proposed paragraph 
(h)(27) did not control articles providing a critical military 
advantage, would control variable speed gearboxes in commercial use, or 
would otherwise limit commercial development utilizing such technology. 
The Department notes that former paragraph (h)(2), prior to the 
revisions set forth in this rule, controlled ``variable speed 
gearboxes'' generally. Accordingly, the proposed paragraph (h)(27) 
constituted a reduction in the range of variable speed gearboxes 
subject to the ITAR to those employed in next-generation military 
technology. In light of the comments received, the Department has 
further refined paragraph (h)(27) to clarify the meaning of ``variable 
speed gearbox,'' as well as to articulate the varying output speed 
currently in use in military applications.
    A commenting party observed that the proposed paragraph (h)(28) 
would capture dual-use electrical power or thermal management systems 
used with Category XIX engines. The Department agreed with this comment 
and revised the paragraph to control electrical power or thermal 
management systems specially designed for an engine controlled in 
Category XIX.
    A commenter requested clarification that the use of the term 
``pound'' in paragraph (h)(28)(i) refers only to the generator and not 
the controller. The Department updated the paragraph to clarify that 
the referenced threshold excludes the mass of the controller for the 
purpose of calculating the gravimetric power density. The commenter 
additionally requested clarification as to whether the threshold 
reflects the total heat exchanger capacity or a single heat exchanger. 
The Department updated the paragraph to address the concerns expressed 
in the comment.
    The same commenter asserted that paragraph (h)(28)(iii) lacked 
clarity and should be deleted. The Department agreed with this comment 
and deleted the paragraph. Consequentially, proposed paragraph 
(h)(28)(iv) now appears in this final rule as paragraph (h)(28)(iii). 
Additionally, the commenter requested clarification regarding the 
conditions for measuring the threshold in proposed paragraph 
(h)(28)(iv). The Department did not insert additional criteria 
regarding measurement conditions because the paragraph as drafted 
describes the threshold for ITAR control at a sufficient level of 
granularity.
    A commenter proposed revisions to proposed paragraph (h)(29) to 
better articulate the scope of software to be controlled. A second 
commenter recommended deletion of the paragraph, since algorithms and 
software are already controlled as technical data. The Department 
agreed with the second commenter and deleted the proposed paragraph, 
having determined that the subject software is already controlled under 
paragraph (i).
    Three commenters suggested that proposed paragraph (h)(30) would 
result in expense to industry with questionable regulatory benefit, and 
would require the re-review of certain parts and components to 
determine whether classification under the new paragraph is 
appropriate.

[[Page 83130]]

    The Department notes that Category VIII was among the first two 
categories to undergo revision pursuant to the ECR initiative, a 
primary goal of which was to create a ``positive list'' that would 
inevitably require periodic revisions to keep reflective of the current 
state of technology. The experience of industry with the earliest 
revised categories, as well as the U.S. government in enforcing the 
regulations, has identified areas in which adjustments to Categories 
VIII and XIX were necessary to best articulate the articles subject to 
control.
    The former treatment of equipment in paragraph (h)(1) potentially 
created the impression that equipment for enumerated aircraft was 
broadly controlled under that paragraph. For additional clarity, a 
newly-created paragraph, now found at (h)(29), enumerates certain types 
of equipment that merit ITAR control. While the Department's review 
considered in all cases the potential impact to industry in revising 
aspects of these categories, the primary standard of review was the 
``critical military or intelligence advantage'' standard set forth in 
ITAR Sec.  120.3(b). As a general principle, where migration of items 
from the CCL to the USML was considered, the Department sought first to 
accommodate the item in a revised ECCN. The articles that newly appear 
on or have returned to the USML in this rule are those that constitute 
or are specially designed for next-generation technology and thus 
satisfy ITAR Sec.  120.3. In response to comments received, the 
Department revised the paragraph to better articulate the specific 
types of equipment that meet this standard.
    Finally, a commenter recommended replacing the words ``technical 
data'' in paragraph (x) with ``technology,'' to align the text with 
other revised categories and utilize the appropriate EAR terminology. 
The Department agreed and made the recommended change.

Revision of Category XIX

    This final rule revises USML Category XIX, covering gas turbine 
engines. As with USML Category VIII, the revisions are undertaken in 
order to ensure that the category is clear, does not inadvertently 
control items in normal commercial use, accounts for technological 
developments, and properly implements the national security and foreign 
policy objectives of the ECR initiative.
    Paragraph (a) is modified to clarify the scope of controlled 
engines and to incorporate technical corrections. Paragraph (b)(1) is 
revised to update the performance criteria meriting control, while 
paragraph (b)(2) is revised to clarify the specific power threshold 
specified therein.
    Paragraph (c) is modified to incorporate conforming and technical 
changes and to make clear that the paragraph applies only to gas 
turbine engines, while paragraph (d) is modified to update the list of 
subject engines. The Note to paragraph (e) is modified to incorporate a 
conforming change.
    Several changes are included within paragraph (f). Paragraph (f)(1) 
is modified to incorporate technical corrections and to update the list 
of subject engines. Paragraph (f)(2) introduces additional text to 
clarify the scope of controlled hot section components, and to 
reorganize the text according to the nature of the articles. New 
controls are included in paragraphs (f)(7) through (f)(12).
    A commenter asserted that the PT6C-67A, a commercial model, would 
exceed the threshold proposed in paragraph (b)(1). In response to this 
comment, the Department increased the relevant threshold to 2000 
mechanical shp (1491 kW).
    Three commenting parties recommended clarification regarding the 
specific power threshold set forth in paragraph (b)(2). The Department 
agreed with these commenters and revised the relevant language to 
include a unit of measurement for the specific power threshold and 
maximum takeoff shaft horsepower. The Department further notes that 
given the additional modifications to paragraph (b)(2) described below, 
and the requirement that an engine must meet all of the criteria of 
paragraph (b)(2) to be subject to ITAR control, the revised paragraph 
should not pose a risk of capturing next-generation commercial engine 
models.
    Two commenters asserted that the term ``armament gas'' in paragraph 
(b)(2) is unclear and requested a definition. The Department disagreed 
with the commenters because the term can be interpreted based on the 
plain meaning of the words ``armament gas ingestion''--that is, the 
term describes an engine that is specially designed to ingest gas 
released from armaments.
    Three commenting parties requested clarification regarding the term 
``transient maneuvers'' in paragraph (b)(2), and requested revision to 
capture only maneuvers that are unique to military scenarios. The 
Department agreed with these comments and revised the parameter to 
capture non-civil transient maneuvers.
    Three commenting parties suggested that the phrase ``controlled in 
this category'' in paragraph (c) be revised to read ``controlled in 
Category VIII.'' The Department partially agreed and revised the phrase 
to read ``controlled in this subchapter.''
    A commenter recommended the removal of the GE38 engine from 
paragraph (d), indicating that it is a marketing name that was used 
during the development of the T408 and will not be used in production. 
The Department agrees with this observation but also notes that GE38 
models remain in use in test aircraft. Accordingly, the GE38 reference 
will remain in paragraph (d) while such engines are still in use.
    One commenter recommended the removal of the MT7 engine from 
paragraph (d), arguing that it is a derivative of the AE1107C and that 
oil sump sealing is being designed out of the model. While the comment 
appears to describe a design modification that has not yet occurred, 
the Department further notes that the subject engine is unique to a 
destroyer platform. For these reasons, the MT7 was retained in 
paragraph (d).
    The Department has removed the TF60 engine from paragraph (d) in 
response to a public comment that recommended its removal.
    A commenter questioned whether the word ``systems'' in paragraph 
(e) should be interpreted to also indicate controls of parts and 
components thereof. The Department confirms that paragraph (e) is 
limited to specified systems and includes no reference to ``parts and 
components thereof''; accordingly, parts and components thereof are not 
controlled under paragraph (e).
    Two comments asserted, with respect to paragraph (f) as well as 
several paragraphs thereof, that materials should not be controlled in 
this category because Category XIII is intended to contain all 
materials entries. The Department disagreed in part with these 
comments. Where the materials at issue pertain only to a particular 
class of defense articles that are controlled in a single subcategory--
as with these materials relevant only to gas turbine engines controlled 
in Category XIX--there is little utility in requiring the reader to 
review multiple USML categories for articles of potential relevance. 
Were these materials of broad applicability for a variety of defense 
articles controlled under more than one USML category, the Department 
would locate the relevant USML entries in Category XIII. However, in 
this case, ECCN 9C619 remains the appropriate category for the 
materials described in the proposed rule. The companion rule the 
Commerce Department has published explains the new licensing policies 
pertaining to such materials. No

[[Page 83131]]

new materials controls are added to Category XIX.
    Two commenting parties recommended the exclusion from paragraph 
(f)(1) of those parts identified in ECCNs 9A610.y or 9A619.y. The 
Department disagreed with this comment for reasons similar to those 
explained above in the context of a similar comment on Category 
VIII(h)(1), regarding the different structures and objectives of CCL 
ECCNs as well as the national security interest in retaining control 
over the parts and components of engines with evolving or next-
generation applications.
    One commenter expressed concern regarding the removal of the word 
``equipment'' from paragraph (f)(1). As with Category VIII(h)(1), the 
word was removed to avoid the impression that all equipment, including 
production equipment, relevant to the enumerated aircraft was subject 
to control under this paragraph. The Department has created a new 
paragraph (f)(12), which appeared in the proposed rule as proposed 
paragraph (f)(16), to enumerate certain types of equipment that merit 
control.
    Three commenters requested clarification of the word ``actively'' 
in paragraph (f)(2), and requested the addition of a definition. The 
Department agreed that the term, which first appeared in the proposed 
rule, did not improve the clarity of the paragraph and deleted each 
instance of the term.
    A commenting party recommended the reorganization of paragraph 
(f)(2) to refer to ``intermediate pressure turbine blades'' after 
``high pressure turbine blades'' and before ``low pressure turbine 
blades.'' The Department agreed and revised the paragraph accordingly.
    A commenting party expressed difficulty interpreting the meaning of 
``engine monitoring systems'' in paragraph (f)(5) and suggested that a 
definition of the term might be beneficial. The Department disagreed 
with the comment because the term can be sufficiently understood 
without a new definition, given the existing definition of ``system'' 
set forth in ITAR Sec.  120.45(g).
    Four parties commented generally on the new paragraphs that 
appeared in the proposed rule as (f)(7) through (f)(16), arguing that 
USML control of the subject articles will result in expense to industry 
by requiring reclassification of articles previously subject to the 
EAR. As with Category VIII, described above, Category XIX was among the 
first two categories to undergo revision pursuant to the ECR 
initiative, a primary goal of which was to create a ``positive list'' 
that would inevitably require periodic revisions to keep reflective of 
the current state of technology. The experience of industry with the 
earliest revised categories, as well as the U.S. government in 
enforcing the regulations, has identified areas in which adjustments to 
Categories VIII and XIX were necessary to best articulate the articles 
subject to control.
    While the Department's review considered in all cases the potential 
impact to industry in revising aspects of these categories, the primary 
standard of review was the ``critical military or intelligence 
advantage'' standard set forth in ITAR Sec.  120.3(b). As a general 
principle, where a migration of items from the CCL to the USML was 
considered, the Department sought first to accommodate the item in a 
revised ECCN. The articles that nevertheless appear in new USML entries 
in this rule constitute or are specially designed for next-generation 
technology and thus satisfy ITAR Sec.  120.3.
    The Department disagrees with the commenters' characterization of 
proposed paragraph (f)(16), now appearing as paragraph (f)(12), which 
controls certain enumerated types of equipment. Since ``equipment'' was 
referenced generally in the previous iteration of paragraph (f), the 
objective of this addition is to better clarify the equipment subject 
to ITAR control. With respect to the remaining proposed paragraphs, the 
Department applied this standard and determined that proposed 
paragraphs (f)(7), (f)(13), (f)(14), and (f)(15) were not necessary for 
inclusion in the USML. Accordingly, these proposed paragraphs have been 
deleted. The considerations that prompted the addition of proposed 
paragraph (f)(7) are adequately addressed through paragraph (g), while 
the remaining deleted proposed entries will be addressed by the 
Department of Commerce in ECCN 9C619.
    The Department retained proposed paragraph (f)(8), now appearing in 
the category as paragraph (f)(7), because the referenced equipment 
allows for the production of gas turbine engines and parts and 
components that offer a critical military advantage.
    Among the retained new paragraphs and in response to public 
comments, the Department revised proposed paragraphs (f)(9) through 
(f)(12)--now appearing as paragraphs (f)(8) through (f)(11)--to 
reference only systems specially designed for gas turbine engines 
controlled in Category XIX, in order to avoid a chilling effect on 
potential commercial applications of these technologies.
    The Department revised proposed paragraph (f)(16), now appearing in 
this final rule as paragraph (f)(12), to enumerate certain types of 
equipment that is specially designed for a defense article described in 
paragraph (f)(1).
    Finally, a commenter recommended replacing the words ``technical 
data'' in paragraph (x) with ``technology,'' to align the text with 
other revised categories and utilize the appropriate EAR terminology. 
The Department agreed and made the recommended change.

Regulatory Findings

Administrative Procedure Act

    The Department of State is of the opinion that controlling the 
import and export of defense articles and services is a foreign affairs 
function of the United States Government and that rules implementing 
this function are exempt from sections 553 (Rulemaking) and 554 
(Adjudications) of the Administrative Procedure Act (APA). Although the 
Department is of the opinion that this rule is exempt from the 
rulemaking provisions of the APA, the Department published this rule as 
a proposed rule (81 FR 6797) with a 45-day provision for public comment 
and without prejudice to its determination that controlling the import 
and export of defense services is a foreign affairs function.

Regulatory Flexibility Act

    Since this rule is exempt from the rulemaking provisions of 5 
U.S.C. 553, it does not require analysis under the Regulatory 
Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This amendment does not involve a mandate that will result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any year and it 
will not significantly or uniquely affect small governments. Therefore, 
no actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    This amendment has been found not to be a major rule within the 
meaning of the Small Business Regulatory Enforcement Fairness Act of 
1996.

Executive Orders 12372 and 13132

    This amendment will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this amendment

[[Page 83132]]

does not have sufficient federalism implications to require 
consultations or warrant the preparation of a federalism summary impact 
statement. The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this amendment.

Executive Order 12866 and 13563

    Executive Orders 12866 and 13563 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, distributed impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).

Executive Order 12988

    The Department of State has reviewed the amendment in light of 
sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, Executive Order 13175 does not apply to this 
rulemaking.

Paperwork Reduction Act

    Following is a listing of approved collections that will be 
affected by revision of the U.S. Munitions List (USML) and the Commerce 
Control List pursuant to the President's Export Control Reform (ECR) 
initiative. This rule continues the implementation of ECR. The list of 
collections pertains to revision of the USML in its entirety, not only 
to the categories published in this rule. The Department is not 
proposing or making changes to these collections in this rule. The 
information collections impacted by the ECR initiative are as follows:
    (1) Statement of Registration, DS-2032, OMB No. 1405-0002.
    (2) Application/License for Permanent Export of Unclassified 
Defense Articles and Related Unclassified Technical Data, DSP-5, OMB 
No. 1405-0003.
    (3) Application/License for Temporary Import of Unclassified 
Defense Articles, DSP-61, OMB No. 1405-0013.
    (4) Application/License for Temporary Export of Unclassified 
Defense Articles, DSP-73, OMB No. 1405-0023.
    (5) Application for Amendment to License for Export or Import of 
Classified or Unclassified Defense Articles and Related Technical Data, 
DSP-6, -62, -74, -119, OMB No. 1405-0092.
    (6) Request for Approval of Manufacturing License Agreements, 
Technical Assistance Agreements, and Other Agreements, DSP-5, OMB No. 
1405-0093.
    (7) Maintenance of Records by Registrants, OMB No. 1405-0111.

List of Subjects in 22 CFR Part 121

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, part 121 is amended as follows:

PART 121--THE UNITED STATES MUNITIONS LIST

0
1. The authority citation for part 121 continues to read as follows:

    Authority:  Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; Pub. L. 105-261, 112 
Stat. 1920; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.

0
2. Section 121.1 is amended by revising U.S. Munitions List Categories 
VIII and XIX to read as follows:


Sec.  121.1   The United States Munitions List.

* * * * *

Category VIII--Aircraft and Related Articles

    (a) Aircraft, whether manned, unmanned, remotely piloted, or 
optionally piloted, as follows (MT if the aircraft, excluding manned 
aircraft, has a range equal to or greater than 300 km):
    * (1) Bombers;
    * (2) Fighters, fighter bombers, and fixed-wing attack aircraft;
    * (3) Turbofan- or turbojet-powered trainers used to train pilots 
for fighter, attack, or bomber aircraft;
    * (4) Attack helicopters;
    * (5) Unmanned aerial vehicles (UAVs) specially designed to 
incorporate a defense article;
    * (6) [Reserved]
    * (7) Aircraft specially designed to incorporate a defense article 
for the purpose of performing an intelligence, surveillance, and 
reconnaissance function;
    * (8) Aircraft specially designed to incorporate a defense article 
for the purpose of performing an electronic warfare function; airborne 
warning and control aircraft; or aircraft specially designed to 
incorporate a defense article for the purpose of performing a command, 
control, and communications function;
    (9) Aircraft specially designed to incorporate a defense article 
for the purpose of performing an air refueling function;
    (10) Target drones;
    (11) [Reserved]
    (12) Aircraft capable of being refueled in-flight including hover-
in-flight refueling (HIFR);
    (13) [Reserved]
    (14) Aircraft with a roll-on/roll-off ramp, capable of airlifting 
payloads over 35,000 lbs. to ranges over 2,000 nm without being 
refueled in-flight, and landing onto short or unimproved airfields, 
other than L-100 and LM-100J aircraft;
    * (15) Aircraft not enumerated in paragraphs (a)(1) through (a)(14) 
as follows:
    (i) U.S.-origin aircraft that bear an original military designation 
of A, B, E, F, K, M, P, R, or S; or
    (ii) Foreign-origin aircraft specially designed to provide 
functions equivalent to those of the aircraft listed in paragraph 
(a)(15)(i) of this category; or
    (16) Aircraft that are armed or are specially designed to be used 
as a platform to deliver munitions or otherwise destroy targets (e.g., 
firing lasers, launching rockets, firing missiles, dropping bombs, or 
strafing);

    Note 1 to paragraph (a): Aircraft specially designed for 
military applications that are not identified in paragraph (a) of 
this section are subject to the EAR and classified as ECCN 9A610, 
including any model of unarmed military aircraft manufactured prior 
to 1956, regardless of origin or designation, and unmodified since 
manufacture. Aircraft with modifications made to incorporate safety 
of flight features or other FAA or NTSB modifications such as 
transponders and air data recorders are considered ``unmodified'' 
for the purposes of this paragraph.
    Note 2 to paragraph (a): ``Range'' is the maximum distance that 
the specified aircraft system is capable of traveling in the mode of 
stable flight as measured by the projection of its trajectory over 
the surface of the Earth. The maximum capability based on the design 
characteristics of the system, when fully loaded with fuel or 
propellant, will be taken into consideration in determining range. 
The range for aircraft systems will be determined independently of 
any external factors such as operational restrictions, limitations 
imposed

[[Page 83133]]

by telemetry, data links, or other external constraints. For 
aircraft systems, the range will be determined for a one-way 
distance using the most fuel-efficient flight profile (e.g., cruise 
speed and altitude), assuming International Civil Aviation 
Organization (ICAO) standard atmosphere with zero wind, but with no 
fuel reserve.

    (b)-(c) [Reserved]
    (d) Launching and recovery equipment specially designed to allow an 
aircraft described in paragraph (a) of this category to take off or 
land on a vessel described in Category VI paragraphs (a) through (c) 
(MT if the launching and recovery equipment is for an aircraft, 
excluding manned aircraft, that has a range equal to or greater than 
300 km).

    Note to paragraph (d): For the definition of ``range,'' see note 
to paragraph (a) of this category.

    (e) [Reserved]
    (f) Developmental aircraft funded by the Department of Defense via 
contract or other funding authorization, and specially designed parts, 
components, accessories, and attachments therefor.

    Note 1 to paragraph (f): This paragraph does not control 
aircraft and specially designed parts, components, accessories, and 
attachments therefor (a) in production; (b) determined to be subject 
to the EAR via a commodity jurisdiction determination (see Sec.  
120.4 of this subchapter), or (c) identified in the relevant 
Department of Defense contract or other funding authorization as 
being developed for both civil and military applications.
    Note 2 to paragraph (f): Note 1 does not apply to defense 
articles enumerated on the U.S. Munitions List, whether in 
production or development.
    Note 3 to paragraph (f): This paragraph is applicable only to 
those contracts, other funding authorizations, or modifications 
initiating development of a new defense article that are dated April 
16, 2014, or later.

    (g) [Reserved]
    (h) Parts, components, accessories, attachments, associated 
equipment and systems, as follows:
    (1) Parts, components, accessories, and attachments specially 
designed for the following U.S.-origin aircraft: The B-1B, B-2, B-21, 
F-15SE, F/A-18 E/F, EA-18G, F-22, F-35, and future variants thereof; or 
the F-117 or U.S. Government technology demonstrators. Parts, 
components, accessories, and attachments of the F-15SE and F/A-18 E/F 
that are common to earlier models of these aircraft, unless listed in 
paragraph (h) of this category, are subject to the EAR;

    Note to paragraph (h)(1): This paragraph does not control parts, 
components, accessories, and attachments that are common to aircraft 
described in paragraph (a) of this category but not identified in 
paragraph (h)(1), and those identified in paragraph (h)(1). For 
example, when applying Sec.  120.41(b)(3), a part common to only the 
F-16 and F-35 is not specially designed for purposes of this 
paragraph. A part common to only the F-22 and F-35--two aircraft 
models identified in paragraph (h)(1)--is specially designed for 
purposes of this paragraph, unless one of the other paragraphs is 
applicable under Sec.  120.41(b) of this subchapter.

    (2) Rotorcraft gearboxes with internal pitch line velocities 
exceeding 20,000 feet per minute and able to operate 30 minutes with 
loss of lubrication without an emergency or auxiliary lubrication 
system, and specially designed parts and components therefor;

    Note to paragraph (h)(2): Loss of lubrication means a situation 
where oil/lubrication is mostly or completely lost from a 
transmission/gearbox such that only a residual coating remains due 
to the lubrication system failure.

    (3) Tail boom folding systems, stabilator folding systems or 
automatic rotor blade folding systems, and specially designed parts and 
components therefor;
    (4) Wing folding systems, and specially designed parts and 
components therefor, for:
    (i) Aircraft powered by power plants controlled under USML Category 
IV(d); or
    (ii) Aircraft with any of the following characteristics and powered 
by gas turbine engines:
    (A) The portion of the wing outboard of the wing fold is required 
for sustained flight;
    (B) Fuel can be stored outboard of the wing fold;
    (C) Control surfaces are outboard of the wing fold;
    (D) Hard points are outboard of the wing fold;
    (E) Hard points inboard of the wing fold allow for in-flight 
ejection; or
    (F) The aircraft is designed to withstand maximum vertical 
maneuvering accelerations greater than +3.5g/-1.5g.
    (5) On-aircraft arresting gear (e.g., tail hooks and drag chutes) 
and specially designed parts and components therefor;
    (6) Bomb racks, missile or rocket launchers, missile rails, weapon 
pylons, pylon-to-launcher adapters, unmanned aerial vehicle (UAV) 
airborne launching systems, external stores support systems for 
ordnance or weapons, and specially designed parts and components 
therefor (MT if the bomb rack, missile launcher, missile rail, weapon 
pylon, pylon-to-launcher adapter, UAV airborne launching system, or 
external stores support system is for an aircraft, excluding manned 
aircraft, or missile that has a ``range'' equal to or greater than 300 
km);
    (7) Damage or failure-adaptive flight control systems, that do not 
consist solely of redundant internal circuitry, specially designed for 
aircraft controlled in this category;
    (8) Threat-adaptive autonomous flight control systems, where a 
``threat-adaptive autonomous flight control system'' is a flight 
control system that, without input from the operator or pilot, adjusts 
the aircraft control or flight path to minimize risk caused by hostile 
threats;
    (9) Non-surface-based flight control systems and effectors (e.g., 
thrust vectoring from gas ports other than main engine thrust vector);
    (10) Radar altimeters with output power management LPI (low 
probability of intercept) or signal modulation (i.e., frequency 
hopping, chirping, direct sequence-spectrum spreading) LPI capabilities 
(MT if for an aircraft, excluding manned aircraft, or missile that has 
a ``range'' equal to or greater than 300 km);
    (11) Air-to-air refueling systems and hover-in-flight refueling 
(HIFR) systems, and specially designed parts and components therefor;
    (12) Unmanned aerial vehicle (UAV) flight control systems and 
vehicle management systems with swarming capability (i.e., UAVs 
interact with each other to avoid collisions and stay together, or, if 
weaponized, coordinate targeting) (MT if for an aircraft, excluding 
manned aircraft, or missile that has a ``range'' equal to or greater 
than 300 km);
    (13) [Reserved]
    (14) Lift fans, clutches, and roll posts for short take-off, 
vertical landing (STOVL) aircraft and specially designed parts and 
components for such lift fans and roll posts;
    (15) Integrated helmets incorporating optical sights or slewing 
devices, which include the ability to aim, launch, track, or manage 
munitions (e.g., Helmet Mounted Cueing Systems, Joint Helmet Mounted 
Cueing Systems (JHMCS), Helmet Mounted Displays, Display and Sight 
Helmets (DASH)), and specially designed parts, components, accessories, 
and attachments therefor;
    (16) Fire control computers, stores management systems, armaments 
control processors, and aircraft-weapon interface units and computers 
(e.g., AGM-88 HARM Aircraft Launcher Interface Computer (ALIC));
    (17) Mission computers, vehicle management computers, and 
integrated core processers specially designed for aircraft controlled 
in this category;

[[Page 83134]]

    (18) Drive systems, flight control systems, and parts and 
components therefor, specially designed to function after impact of a 
7.62mm or larger projectile;
    (19) Thrust reversers specially designed to be deployed in flight 
for aircraft controlled in this category;
    * (20) Any part, component, accessory, attachment, equipment, or 
system that:
    (i) Is classified;
    (ii) Contains classified software directly related to defense 
articles in this subchapter or 600 series items subject to the EAR; or
    (iii) Is being developed using classified information.

    Note to paragraph (h)(20): Classified means classified pursuant 
to Executive Order 13526, or predecessor order, and a security 
classification guide developed pursuant thereto or equivalent, or to 
the corresponding classification rules of another government or 
international organization;

    (21)-(26) [Reserved]
    (27) Variable speed gearboxes, where a ``variable speed gearbox'' 
has the ability to vary the gearbox output speed by mechanical means 
within the gearbox while the gearbox input speed from the engine or 
other source is constant, and is capable of varying output speed by 20% 
or greater and providing power to rotors, proprotors, propellers, 
propfans, or liftfans; and specially designed parts and components 
therefor;
    (28) Electrical power or thermal management systems specially 
designed for an engine controlled in Category XIX and having any of the 
following:
    (i) Electrical power generators that provide greater than 300kW of 
electrical power (per generator) with gravimetric power densities 
exceeding 2kW/pound (excluding the mass of the controller for the 
purpose of calculating the gravimetric power density);
    (ii) Heat exchangers that exchange 60 kW/K-m\3\ or 1 kW/K of heat 
or greater into the gas turbine engine flow path; or
    (iii) Direct-cooling thermal electronic package heat exchangers 
that transfer 20kW of heat or greater at 100W/cm\2\ or greater.
    (29) Any of the following equipment if specially designed for a 
defense article described in paragraph (h)(1):
    (i) Scale test models;
    (ii) Full scale iron bird ground rigs used to test major aircraft 
systems; or
    (iii) Jigs, locating fixtures, templates, gauges, molds, dies, or 
caul plates.
    (i) Technical data (see Sec.  120.10 of this subchapter) and 
defense services (see Sec.  120.9 of this subchapter) directly related 
to the defense articles described in paragraphs (a) through (h) of this 
category and classified technical data directly related to items 
controlled in ECCNs 9A610, 9B610, 9C610, and 9D610 and defense services 
using classified technical data. (See Sec.  125.4 of this subchapter 
for exemptions.) (MT for technical data and defense services related to 
articles designated as such.)
    (j)-(w) [Reserved]
    (x) Commodities, software, and technology subject to the EAR (see 
Sec.  120.42 of this subchapter) used in or with defense articles 
controlled in this category.

    Note to paragraph (x): Use of this paragraph is limited to 
license applications for defense articles controlled in this 
category where the purchase documentation includes commodities, 
software, or technology subject to the EAR (see Sec.  123.1(b) of 
this subchapter).
    Note: Parts, components, accessories, and attachments in 
paragraphs (h)(3)-(5), (7), (14), (17), or (19) are licensed by the 
Department of Commerce when incorporated in an aircraft subject to 
the EAR and classified under ECCN 9A610. Replacement systems, parts, 
components, accessories and attachments are subject to the controls 
of the ITAR.

* * * * *

Category XIX--Gas Turbine Engines and Associated Equipment

    * (a) Turbofan and Turbojet engines (including those that are 
technology demonstrators, developmental engines, or variable cycle 
engines) capable of 15,000 lbf (66.7 kN) of thrust or greater that have 
any of the following:
    (1) With or specially designed for thrust augmentation 
(afterburner);
    (2) Thrust or exhaust nozzle vectoring;
    (3) Parts or components controlled in paragraph (f)(6) of this 
category;
    (4) Specially designed for sustained 30 second inverted flight or 
negative g maneuver; or
    (5) Specially designed for high power extraction (greater than 50 
percent of engine thrust at altitude) at altitudes greater than 50,000 
feet.
    * (b) Turboshaft and Turboprop engines (including those that are 
technology demonstrators or developmental engines) that have any of the 
following:
    (1) Capable of 2000 mechanical shp (1491 kW) or greater and 
specially designed with oil sump sealing when the engine is in the 
vertical position; or
    (2) Capable of a specific power of 225 shp/(lbm/sec) or greater and 
specially designed for armament gas ingestion and non-civil transient 
maneuvers, where specific power is defined as maximum takeoff shaft 
horsepower (shp) divided by compressor inlet flow (lbm/sec).
    * (c) Gas turbine engines (including technology demonstrators, 
developmental engines, and variable cycle engines) specially designed 
for unmanned aerial vehicle systems controlled in this subchapter, 
cruise missiles, or target drones (MT if for an engine used in an 
aircraft, excluding manned aircraft, or missile that has a ``range'' 
equal to or greater than 300 km).
    * (d) GE38, AGT1500, CTS800, MT7, T55, HPW3000, GE3000, T408, and 
T700 engines.

    Note to paragraph (d):  Engines subject to the control of this 
paragraph are licensed by the Department of Commerce when 
incorporated in an aircraft subject to the EAR and controlled under 
ECCN 9A610. Such engines are subject to the controls of the ITAR in 
all other circumstances.

    * (e) Digital engine control systems (e.g., Full Authority Digital 
Engine Controls (FADEC) and Digital Electronic Engine Controls (DEEC)) 
specially designed for gas turbine engines controlled in this category 
(MT if the digital engine control system is for an aircraft, excluding 
manned aircraft, or missile that has a range equal to or greater than 
300 km).

    Note to paragraph (e): Digital electronic control systems 
autonomously control the engine throughout its whole operating range 
from demanded engine start until demanded engine shut-down, in both 
normal and fault conditions.

    (f) Parts, components, accessories, attachments, associated 
equipment, and systems as follows:
    (1) Parts, components, accessories, and attachments specially 
designed for the following U.S.-origin engines (and military variants 
thereof): F101, F107, F112, F118, F119, F120, F135, F136, F414, F415, 
and J402;

    Note to paragraph (f)(1): This paragraph does not control parts, 
components, accessories, and attachments that are common to engines 
enumerated in paragraph (a) through (d) of this category but not 
identified in paragraph (f)(1), and those identified in paragraph 
(f)(1). For example, a part common to only the F110 and F136 is not 
specially designed for purposes of this paragraph. A part common to 
only the F119 and F135--two engine models identified in paragraph 
(f)(1)--is specially designed for purposes of this paragraph, unless 
one of the other paragraphs is applicable under Sec.  120.41(b).

    * (2) Hot section components (i.e., combustion chambers and liners; 
high pressure turbine blades, vanes, disks and related cooled 
structure; cooled intermediate pressure turbine blades, vanes, disks 
and related cooled structures; cooled low pressure turbine blades, 
vanes, disks and related cooled

[[Page 83135]]

structures; cooled shaft-driving power turbine blades, vanes, disks and 
related cooled structures; cooled augmenters; and cooled nozzles) 
specially designed for gas turbine engines controlled in this category;
    (3) Uncooled turbine blades, vanes, disks, and tip shrouds 
specially designed for gas turbine engines controlled in this category;
    (4) Combustor cowls, diffusers, domes, and shells specially 
designed for gas turbine engines controlled in this category;
    (5) Engine monitoring systems (i.e., prognostics, diagnostics, and 
health) specially designed for gas turbine engines and components 
controlled in this category;
    * (6) Any part, component, accessory, attachment, equipment, or 
system that:
    (i) Is classified;
    (ii) Contains classified software directly related to defense 
articles in this subchapter or 600 series items subject to the EAR; or
    (iii) Is being developed using classified information.

    Note to paragraph (f)(6): ``Classified'' means classified 
pursuant to Executive Order 13526, or predecessor order, and a 
security classification guide developed pursuant thereto or 
equivalent, or to the corresponding classification rules of another 
government or international organization;

    (7) Investment casting cores, core dies, or wax pattern dies for 
parts or components enumerated in paragraphs (f)(1), (f)(2), or (f)(3) 
of this category;
    (8) Pressure gain combustors specially designed for engines 
controlled in this category, and specially designed parts and 
components therefor;
    (9) Three-stream fan systems, specially designed for gas turbine 
engines controlled in this Category, that allow the movement of airflow 
between the streams to control fan pressure ratio or bypass ratio (by 
means other than use of fan corrected speed or the primary nozzle area 
to change the fan pressure ratio or bypass ratio), and specially 
designed parts, components, accessories, and attachments therefor;
    (10) High pressure compressors, specially designed for gas turbine 
engines controlled in this Category, with core-driven bypass streams 
that have a pressure ratio greater than one, occurring across any 
section of the bypass duct, and specially designed parts, components, 
accessories, and attachments therefor;
    (11) Intermediate compressors of a three-spool compression system, 
specially designed for gas turbine engines controlled in this Category, 
with an intermediate spool-driven bypass stream that has a pressure 
ratio greater than one, occurring across any section of the bypass 
duct, and specially designed parts, components, accessories, and 
attachments therefor; or
    (12) Any of the following equipment if specially designed for a 
defense article described in paragraph (f)(1): Jigs, locating fixtures, 
templates, gauges, molds, dies, caul plates, or bellmouths.
    (g) Technical data (see Sec.  120.10 of this subchapter) and 
defense services (see Sec.  120.9 of this subchapter) directly related 
to the defense articles described in paragraphs (a) through (f) of this 
category and classified technical data directly related to items 
controlled in ECCNs 9A619, 9B619, 9C619, and 9D619 and defense services 
using the classified technical data. (See Sec.  125.4 of this 
subchapter for exemptions.) (MT for technical data and defense services 
related to articles designated as such.)
    (h)-(w) [Reserved]
    (x) Commodities, software, and technology subject to the EAR (see 
Sec.  120.42 of this subchapter) used in or with defense articles 
controlled in this category.

    Note to paragraph (x): Use of this paragraph is limited to 
license applications for defense articles controlled in this 
category where the purchase documentation includes commodities, 
software, or technology subject to the EAR (see Sec.  123.1(b) of 
this subchapter).


     Dated: November 14, 2016.
Thomas M. Countryman,
Acting Under Secretary, Arms Control and International Security, 
Department of State.
[FR Doc. 2016-27775 Filed 11-18-16; 8:45 am]
 BILLING CODE 4710-25-P



                                                  83126            Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations

                                                  ■  14. In ECCN 9B619, revise the                        otherwise described in USML Category XIX              ■ 18. In ECCN 9E619, the ‘‘List of Items
                                                  ‘‘Related Controls’’ paragraph in the List              or ECCN 9A619 (except 9A619.y).                       Controlled’’ section is amended by
                                                  of Items Controlled section to read as                     b. Materials ‘‘specially designed’’ for use in     revising the ‘‘Related Controls’’
                                                                                                          certain gas turbine engines, as follows:
                                                  follows:                                                                                                      paragraph, and in the ‘‘Items’’
                                                                                                             b.1. Powders ‘‘specially designed’’ for
                                                  9B619 Test, inspection, and production                  thermal or environmental barrier coating of           paragraph:
                                                     ‘‘equipment’’ and related commodities                defense articles enumerated or described in           ■ a. Revising the Note that immediately
                                                     ‘‘specially designed’’ for the                       USML Category XIX paragraphs (f)(1)–(f)(4)            follows paragraph .a;
                                                     ‘‘development’’ or ‘‘production’’ of                 for engines listed in (f)(1);                         ■ b. Removing the word ‘‘or’’ from the
                                                     commodities enumerated or otherwise                     b.2. Superalloys (i.e., nickel, cobalt or iron     end of paragraph .b.8;
                                                     described in ECCN 9A619 or USML                      based), used in directionally solidified or           ■ c. Removing the period from the end
                                                     Category XIX (see List of Items                      single crystal casting, ‘‘specially designed’’        of paragraph .b.9 and adding in its place
                                                     Controlled).                                         for defense articles enumerated or described          a semicolon followed by the word ‘‘or’’;
                                                  *      *     *       *      *                           in USML Category XIX paragraphs (f)(1)–
                                                                                                          (f)(4) for engines listed in paragraph (f)(1); or
                                                                                                                                                                and
                                                  List of Items Controlled                                   b.3. Imide matrix, metal matrix, or ceramic        ■ d. Adding paragraph b.10.
                                                  Related Controls: USML Category XIX(f)(1)               matrix composite material (i.e., reinforcing             The revision and addition read as
                                                    controls ‘‘parts,’’ ‘‘components,’’                   fiber combined with a matrix) ‘‘specially             follows:
                                                    ‘‘accessories,’’ and ‘‘attachments’’                  designed’’ for defense articles enumerated or         9E619 ‘‘Technology’’ ‘‘required’’ for the
                                                    ‘‘specially designed’’ for the engines                described in USML Category XIX paragraphs                ‘‘development,’’ ‘‘production,’’
                                                    described in Category XIX(f)(1), but does             (f)(1)–(f)(4) for engines listed in paragraph            operation, installation, maintenance,
                                                    not control the commodities enumerated or             (f)(1).                                                  repair, overhaul, or refurbishing of
                                                    otherwise described in ECCN 9B619.                       Note 1: Materials enumerated elsewhere in             military gas turbine engines and related
                                                    USML Category XIX(f)(2)–(11) controls                 the CCL, such as in a CCL Category 1 ECCN,               commodities controlled by 9A619,
                                                    other engine ‘‘parts,’’ ‘‘components,’’               are controlled pursuant to the controls of the           equipment controlled by 9B619,
                                                    ‘‘accessories,’’ ‘‘attachments,’’ and                 applicable ECCN.                                         materials controlled by 9C619, or
                                                    ‘‘systems.’’                                                                                                   software controlled by 9D619 (see List of
                                                                                                             Note 2: Materials described in paragraph
                                                  *     *      *    *    *                                .a of this entry that are ‘‘specially designed’’         Items Controlled).
                                                  ■ 15. In ECCN 9C610, revise the                         for both an engine enumerated in USML                 *        *       *    *    *
                                                  heading, and the ‘‘Items’’ paragraph of                 Category XIX and an engine enumerated in
                                                  the ‘‘List of Items Controlled’’ section to             ECCN 9A619 are subject to the controls of             List of Items Controlled
                                                  read as follows:                                        this ECCN 9C619                                         Related Controls: Technical data directly
                                                                                                            Note 3: Materials described in this entry           related to articles enumerated or otherwise
                                                  9C610 Materials ‘‘specially designed’’ for                                                                    described in USML Category XIX are subject
                                                     commodities controlled by USML                       that are or have been used in gas turbine
                                                                                                          engines in production (i.e., not in                   to the control of USML Category XIX(g).
                                                     Category VIII or ECCN 9A610 and not
                                                     elsewhere specified in the CCL or the                development) that are not enumerated or               *        *       *    *    *
                                                     USML (see List of Items Controlled).                 otherwise described on the USML or ECCN               Items:
                                                                                                          9A619 are not controlled by this entry.                  * * *
                                                  *      *     *       *      *
                                                                                                          ■  17. In ECCN 9E610, in the ‘‘List of                   Note: ‘‘Build-to-print technology’’
                                                  List of Items Controlled                                Items Controlled’’ section, the ‘‘Items’’             ‘‘required’’ for the ‘‘production’’ of items
                                                     * * *                                                paragraph is amended by:                              described in paragraphs b.1 through b.10 of
                                                  Items: a. Materials not elsewhere specified in          ■ a. Removing the word ‘‘or’’ from the                this entry is classified under 9E619.a.
                                                     the USML or the CCL and ‘‘specially                  end of paragraph .b.13;                                  b. * * *
                                                     designed’’ for commodities enumerated or             ■ b. Removing the period from the end                    b.10. Materials controlled by ECCN
                                                     otherwise described in USML Category VIII            of paragraph .b.14 and adding in its                  9C619.b.
                                                     or ECCN 9A610 (except 9A610.y).
                                                                                                          place a semicolon followed by the word                  Dated: November 8, 2016.
                                                     Note 1: Materials enumerated elsewhere in            ‘‘or’’; and                                           Kevin J. Wolf,
                                                  the CCL, such as in a CCL Category 1 ECCN,              ■ c. Adding paragraph .b.15.
                                                  are controlled pursuant to controls of the                                                                    Assistant Secretary for Export
                                                                                                             The addition reads as follows.                     Administration.
                                                  applicable ECCN.
                                                                                                          9E610 Technology ‘‘required’’ for the                 [FR Doc. 2016–27777 Filed 11–18–16; 8:45 am]
                                                    Note 2: Materials ‘‘specially designed’’ for             ‘‘development,’’ ‘‘production,’’
                                                  both aircraft enumerated in USML Category                                                                     BILLING CODE 3510–33–P
                                                                                                             operation, installation, maintenance,
                                                  VIII and aircraft enumerated in ECCN 9A610                 repair, overhaul, or refurbishing of
                                                  are subject to the controls of this ECCN                   military aircraft and related
                                                    b. [Reserved]                                            commodities controlled by 9A610,                   DEPARTMENT OF STATE
                                                  ■ 16. In ECCN 9C619, revise the                            equipment controlled by 9B610,
                                                  heading, and the ‘‘Items’’ paragraph of                    materials controlled by 9C610, or                  22 CFR Part 121
                                                  the ‘‘List of Items Controlled’’ section to                software controlled by 9D610 (see List of
                                                                                                                                                                RIN 1400–AD89
                                                  read as follows:                                           Items Controlled).
                                                                                                          *        *    *      *       *                        [Public Notice: 9604]
                                                  9C619 Materials ‘‘specially designed’’ for
                                                     commodities controlled by USML                       List of Items Controlled                              Amendment to the International Traffic
                                                     Category XIX or ECCN 9A619 and not
                                                     elsewhere specified in the CCL or on the             *        *    *      *       *                        in Arms Regulations: Revision of U.S.
                                                     USML (see List of Items Controlled).                 Items:                                                Munitions List Categories VIII and XIX
                                                                                                          *        *    *      *       *
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                                                  *      *     *       *      *                                                                                 AGENCY:        Department of State.
                                                                                                             b. * * *
                                                  List of Items Controlled                                   b.15. Technology ‘‘required’’ for the              ACTION:       Final rule.
                                                     * * *                                                ‘‘development’’ or ‘‘production’’ of ‘‘parts’’ or
                                                  Items:                                                  ‘‘components’’ controlled in 9A610.x and              SUMMARY:  As part of the President’s
                                                     a. Materials not controlled by paragraph .b          ‘‘specially designed’’ for damage or failure-         Export Control Reform (ECR) initiative,
                                                  of this entry and not elsewhere specified in            adaptive flight control systems controlled in         the Department of State amends the
                                                  the CCL or on the USML, and ‘‘specially                 Category VIII(h)(7) of the USML.                      International Traffic in Arms
                                                  designed’’ for commodities enumerated or                *        *    *      *       *                        Regulations (ITAR) to revise Categories


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                                                                   Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations                                         83127

                                                  VIII (aircraft and related articles) and                articles. The revisions are undertaken in             the scope of control. Paragraph (h)(8) is
                                                  XIX (gas turbine engines and associated                 order to ensure that the category, which              modified to clarify the meaning of
                                                  equipment) of the U.S. Munitions List                   was last revised in 2013, is clear, does              ‘‘threat-adaptive autonomous flight
                                                  (USML) to describe more precisely the                   not inadvertently control items in                    control systems.’’ Paragraph (h)(10) is
                                                  articles warranting control on the                      normal commercial use, accounts for                   modified to enhance the clarity of the
                                                  USML. The revisions contained in this                   technological developments, and                       control text. Paragraph (h)(13) is deleted
                                                  rule are part of the Department of State’s              properly implements the national                      and placed into reserve. Paragraph
                                                  retrospective plan under E.O. 13563.                    security and foreign policy objectives of             (h)(16) is modified to incorporate a
                                                  DATES: This final rule is effective on                  the ECR initiative. The Department                    technical correction. Paragraph (h)(18)
                                                  December 31, 2016.                                      published a proposed rule for these                   is modified to control parts and
                                                  FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                          revisions, as well as the revisions to                components that are specially designed
                                                  C. Edward Peartree, Director, Office of                 Category XIX described below, on                      to meet the same performance criteria as
                                                  Defense Trade Controls Policy,                          February 9, 2016 (81 FR 6797).                        the systems identified in the paragraph.
                                                                                                             Paragraph (a) is revised to clarify that           Paragraph (h)(19) is modified to remove
                                                  Department of State, telephone (202)
                                                                                                          the controls for all paragraphs are                   reference to ECCN 9A610.
                                                  663–2792; email
                                                                                                          applicable ‘‘whether manned,                             Current paragraphs (h)(23) through
                                                  DDTCPublicComments@state.gov.
                                                                                                          unmanned, remotely piloted, or                        (h)(26) are placed into reserve, with new
                                                  ATTN: ITAR Amendment—USML
                                                                                                          optionally piloted,’’ by modifying                    controls added as paragraphs (h)(27)
                                                  Categories VIII and XIX.
                                                                                                          paragraph (a)(5) to clarify the design                through (h)(29). Finally, the note to
                                                  SUPPLEMENTARY INFORMATION: The                          feature meriting USML control, and by                 Category VIII is modified to update the
                                                  Directorate of Defense Trade Controls                   deleting paragraph (a)(6) and placing it              paragraphs of paragraph (h) that are
                                                  (DDTC), U.S. Department of State,                       into reserve, because the relevant                    affected, as well as to reflect paragraph
                                                  administers the International Traffic in                control is subsumed by revised                        (e) having been placed into reserve.
                                                  Arms Regulations (ITAR) (22 CFR parts                   paragraph (a)(5). Paragraphs (a)(7),                     A commenting party expressed
                                                  120–130). The items subject to the                      (a)(8), and (a)(9) are modified to clarify            concern that the objective of the USML
                                                  jurisdiction of the ITAR, i.e., ‘‘defense               the respective design features meriting               review process, first announced in a
                                                  articles,’’ are identified on the ITAR’s                USML control. The text of paragraphs                  Notice of Inquiry on March 2, 2015 (80
                                                  U.S. Munitions List (USML) (22 CFR                      (a)(11) and (a)(13) is deleted and the                FR 11314), is to reconsider or reverse
                                                  121.1). With few exceptions, items not                  paragraphs are placed into reserve.                   the effect of the ECR initiative. The
                                                  subject to the export control jurisdiction              Paragraph (a)(14) is modified to exclude              Department clarifies that the purpose of
                                                  of the ITAR are subject to the                          L–100 and LM–100J aircraft from the                   the USML review process is to review
                                                  jurisdiction of the Export                              scope of control. Note 2 to paragraph (a)             and update the subject USML
                                                  Administration Regulations (‘‘EAR,’’ 15                 is revised to clarify the definition of the           categories, as needed, to account for
                                                  CFR parts 730–774, which includes the                   described term.                                       technological developments, practical
                                                  Commerce Control List (CCL) in                             Paragraph (d) is modified to delete the            application issues identified by
                                                  Supplement No. 1 to Part 774),                          ‘‘ship-based’’ control parameter and to               exporters and reexporters, and changes
                                                  administered by the Bureau of Industry                  clarify the intent and scope of the                   in the military and commercial
                                                  and Security (BIS), U.S. Department of                  control.                                              applications of items affected by the list.
                                                  Commerce. Both the ITAR and the EAR                        Paragraph (e) reflects having been                 The ‘‘positive list’’ structure adopted in
                                                  impose license requirements on exports                  placed into reserve in the final rule                 each of the revised USML categories
                                                  and reexports. Items not subject to the                 published by the Department on                        requires an ongoing process of review in
                                                  ITAR or to the exclusive licensing                      October 12, 2016 (81 FR 70340).                       order to ensure that the list is current
                                                  jurisdiction of any other set of                           Notes 1 and 3 to paragraph (f) are                 and reflective of the modern state of the
                                                  regulations are subject to the EAR.                     modified to incorporate clarifying                    subject technology. This ongoing effort
                                                    All references to the USML in this                    language.                                             has been anticipated since the start of
                                                  rule are to the list of defense articles                   Several changes are made to                        the ECR initiative and is not intended to
                                                  controlled for the purpose of export or                 paragraph (h). Paragraph (h)(1) is                    reconsider or reverse the effort.
                                                  temporary import pursuant to the ITAR,                  revised to update the list of subject                    A commenter requested clarification
                                                  and not to the defense articles on the                  platforms, and to delete the reference to             as to why paragraph (h)(2) had been
                                                  USML that are controlled by the Bureau                  ‘‘equipment’’ because the specific types              removed from the Note to Category VIII.
                                                  of Alcohol, Tobacco, Firearms and                       of equipment that warrant ITAR control                Paragraph (h)(2) has been revised
                                                  Explosives (ATF) for the purpose of                     are now enumerated separately in                      significantly to control only a class of
                                                  permanent import under its regulations.                 paragraph (h)(29). The Note to                        rotorcraft gearboxes for which there is
                                                  See 27 CFR part 447. Pursuant to section                paragraph (h)(1) is modified to                       no current civil application. Given the
                                                  38(a)(1) of the Arms Export Control Act                 incorporate technical corrections and to              reduced scope of control in the revised
                                                  (AECA), all defense articles controlled                 enhance the clarity of the note.                      paragraph (h)(2), inclusion in the Note
                                                  for export or import are part of the                    Paragraph (h)(2) is revised to focus the              to Category VIII is no longer
                                                  USML under the AECA. The list of                        scope of control on certain rotorcraft                appropriate.
                                                  defense articles controlled by ATF for                  gearboxes meeting specific technical                     Three commenting parties
                                                  the purpose of permanent import is the                  parameters, and a note to paragraph                   recommended that paragraph (a)(5) be
                                                  U.S. Munitions Import List (USMIL).                     (h)(2) is added to clarify certain                    deleted, given the proposed reference to
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                                                  The transfer of defense articles from the               terminology used therein. Paragraph                   ‘‘unmanned’’ aircraft in paragraph (a),
                                                  ITAR’s USML to the EAR’s CCL does                       (h)(4)(ii) is modified to clarify the scope           while an additional commenter
                                                  not affect the list of defense articles                 of control. Paragraph (h)(5) is updated to            suggested that the proposed paragraph
                                                  controlled on the USMIL.                                add the words ‘‘On-aircraft’’ in order to             (a)(5) was less clear than the existing
                                                                                                          clarify the scope of control, while                   version of the same paragraph. In light
                                                  Revision of Category VIII                               paragraph (h)(6) is updated to add the                of these comments, the Department
                                                    This final rule revises USML Category                 words ‘‘or rocket’’ after ‘‘missile.’’                modified the paragraph to control only
                                                  VIII, covering aircraft and related                     Paragraph (h)(7) is modified to clarify               those unmanned aerial vehicles that are


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                                                  83128            Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations

                                                  specially designed to incorporate a                     identified the class of articles subject to              One commenting party recommended
                                                  defense article, in order to focus the                  control.                                              a revision of paragraph (d) to limit its
                                                  paragraph on the intended scope of                         Three commenters suggested that                    scope to launching and recovery
                                                  control. The Department disagrees with                  paragraph (a)(14) be revised to limit the             equipment for aircraft controlled in
                                                  the commenters recommending deletion                    scope of control to aircraft with                     paragraph (a) that meet a minimum
                                                  of the paragraph, as there is continuing                uniquely military capabilities, to the                weight threshold, so as to exclude small
                                                  oversight utility in maintaining a clear,               exclusion of aircraft platforms such as               UAVs. The Department disagreed with
                                                  enumerated control for unmanned aerial                  the L–100 and LM–100J. One                            this recommendation, noting that the
                                                  vehicles that are specially designed to                 commenter asserted that the systems                   paragraph controls only launching and
                                                  incorporate a defense article,                          and functions that make the C–130J a                  recovery equipment that is specially
                                                  particularly in light of the unique                     sophisticated military platform are                   designed to allow a subject aircraft to
                                                  considerations for these aircraft as set                removed on the LM–100J, and that                      land on a vessel described in Category
                                                  forth in the Department’s policy on                     militarization of the latter platform                 VI(a)–(c). This language controls a
                                                  unmanned aerial systems.                                would be very difficult. In response to               sufficiently narrow class of aircraft and
                                                    Two commenters suggested that the                     these comments, the Department revised                adequately excludes many small UAV
                                                  proposed revisions to paragraph (a)(7)                  paragraph (a)(14) to exclude the L–100                platforms.
                                                  were less clear than the existing version               and LM–100J aircraft.                                    A commenter expressed concern
                                                  of the same paragraph, and could                           A commenting party requested                       regarding the removal of the word
                                                  potentially capture an overly broad                     clarification regarding the classification            ‘‘equipment’’ from paragraph (h)(1), as it
                                                  scope of aircraft with intelligence,                    of parts and components that are not                  potentially confuses the jurisdiction of
                                                  surveillance, and reconnaissance (ISR)                  enumerated or otherwise described on                  such equipment. To clarify the scope of
                                                  capabilities where such aircraft                        the USML, and are common to the C–                    controlled equipment and avoid a
                                                  incorporate a defense article. The                      130 and the L–100 aircraft. As with all               perception that equipment designed for
                                                  Department agreed with these                            parts and components classification                   aircraft enumerated in paragraph (h)(1)
                                                  commenters and revised the paragraph                    concerns, the commenter is advised to                 is per se controlled in the same
                                                  to control only those aircraft that are                 follow the standard order of review                   paragraph, the Department created
                                                  specially designed to incorporate a                     guidance provided on the DDTC Web                     proposed paragraph (h)(30), which
                                                  defense article for the purpose of                      site (see http://pmddtc.state.gov/faqs/               appears in this final rule as paragraph
                                                  performing an intelligence, surveillance,               ecr.html#b). Where an item is described               (h)(29), to specify the specific types of
                                                  and reconnaissance function, in order to                in multiple entries, an enumerated entry              equipment that warrant USML control.
                                                  better focus the scope of control and                   takes precedence over an entry                           A commenting party recommended
                                                  exclude certain aircraft that merely                    controlling the item by virtue of a                   the exclusion from paragraph (h)(1) of
                                                  incorporate a defense article.                          specially designed catch-all. The                     those parts identified in ECCNs 9A610.y
                                                    One commenter expressed concern                       exception to this rule is where a SME                 or 9A619.y. The Department disagreed
                                                  that proposed paragraph (a)(8) would                    entry is involved. In all situations, a               with this recommendation. The
                                                  control technical data for electronic                   SME entry will take precedence over a                 structure of CCL controls is
                                                  warfare or command, control, and                        non-SME entry. If, through the order of               distinguishable from those in the USML,
                                                  communication aircraft that simply                      review, one determines a particular item              with the CCL utilizing ‘‘reasons for
                                                  incorporated a defense article, while                   is not specifically enumerated in the                 control’’ and country licensing policies
                                                  another party requested clarification of                USML, it may still be controlled by                   that are not available under the ITAR or
                                                  these terms as well as the significant                  virtue of its parts and components,                   AECA. As such, provisions from the
                                                  military equipment (SME) designation                    which are caught via a catch-all. For                 CCL cannot easily be adopted for the
                                                  for this paragraph. The Department                      example, a part or component of an                    purposes of the USML. Given the
                                                  notes that command, control, and                        airborne radar system specially                       unique policy considerations applicable
                                                  communication systems are currently                     designed for the F–35 may not be                      to the enumerated aircraft in paragraph
                                                  designated as SME in USML Category                      enumerated or captured in USML                        (h)(1) and their low observable/counter
                                                  XI, so analogous treatment is                           Category XI but will be controlled under              low observable capabilities, the
                                                  appropriate in this paragraph. While the                the specially designed catch-all of                   Department declines to exclude classes
                                                  Department has not defined the                          Category VIII(h)(1). If the article does              of parts and components for these
                                                  referenced terms, as there were no                      not appear to fall under any USML                     highly sensitive platforms.
                                                  examples provided of demonstrated                       paragraph or paragraph, consult the                      One commenter recommended that
                                                  uncertainty in the regulated community,                 EAR to complete the classification                    paragraph (h)(2) be revised to control
                                                  the scope of the paragraph has been                     inquiry.                                              only those rotorcraft gearboxes that are
                                                  revised to control only those referenced                   A commenter recommended the                        qualified to a particular military
                                                  aircraft types that are specially designed              deletion of paragraph (a)(15)(ii), based              standard. The Department disagreed
                                                  to incorporate a defense article for the                on the observation that paragraphs (a)(1)             with this comment, because military
                                                  purpose of performing a referenced                      through (a)(14) do not specify whether                standards are not developed and
                                                  function.                                               the subject aircraft is of U.S. or foreign            published to advance export control-
                                                    A commenting party recommended                        origin. The Department notes that                     related objectives and may be revised
                                                  the replacement of each instance of the                 paragraph (a)(15)(ii) follows paragraph               frequently for reasons unrelated to
                                                  words ‘‘capable of’’ with ‘‘equipped to’’               (a)(15)(i), which captures aircraft not               export controls, which may additionally
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                                                  or ‘‘designed for,’’ as appropriate in the              otherwise enumerated in paragraph (a)                 reduce the clarity of the USML through
                                                  context of the paragraph at issue. The                  but bearing any enumerated military                   successive iterations of revisions to
                                                  Department reviewed each paragraph in                   designation. Since foreign-origin aircraft            these standards.
                                                  which these words appeared and made                     would not bear a U.S. military                           Two commenters asserted that
                                                  the appropriate revisions where the                     designation, paragraph (a)(15)(ii) exists             individual performance criteria specific
                                                  paragraph did not otherwise provide                     to capture the foreign equivalents of the             in paragraph (h)(2) are not uniquely
                                                  technical parameters or performance                     U.S.-origin aircraft controlled by                    military in nature. The Department
                                                  criteria that sufficiently constrained and              paragraph (a)(15)(i).                                 notes that both criteria are required for


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                                                                   Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations                                        83129

                                                  control, and it is the combination of the                  One commenter suggested that                       received, the Department has further
                                                  two specified criteria that makes the                   paragraph (h)(10) include a note, similar             refined paragraph (h)(27) to clarify the
                                                  controlled article militarily significant.              to the Note to Category XI(a)(3),                     meaning of ‘‘variable speed gearbox,’’ as
                                                  No examples were provided of                            indicating that the paragraph does not                well as to articulate the varying output
                                                  commercial items capable of meeting                     control radio altimeter equipment                     speed currently in use in military
                                                  both performance criteria.                              conforming to Federal Aviation                        applications.
                                                     A commenter suggested that tail boom                 Administration TSO–C87. The                             A commenting party observed that the
                                                  folding systems controlled under                        Department did not add this note to                   proposed paragraph (h)(28) would
                                                  paragraph (h)(3) could be useful in civil               paragraph (h)(10), because commercial                 capture dual-use electrical power or
                                                  applications to optimize the use of                     altimeters conforming to this standard                thermal management systems used with
                                                  space. The Department did not revise                    would not possess either of the low                   Category XIX engines. The Department
                                                  the control because the commenter did                   probability of intercept capabilities                 agreed with this comment and revised
                                                  not provide an example of a current                     described in the paragraph. Since                     the paragraph to control electrical
                                                  civil application for the articles                      current commercial altimeters cannot                  power or thermal management systems
                                                  controlled in this paragraph.                           meet the criteria of paragraph (h)(10), it            specially designed for an engine
                                                     A commenter recommended that                         is not necessary to include a note that               controlled in Category XIX.
                                                  paragraph (h)(5) be reviewed in concert                 would impact only these commercial                      A commenter requested clarification
                                                  with ECCN 9A610.e to ensure that the                    items.                                                that the use of the term ‘‘pound’’ in
                                                  two entries did not overlap. The                           Three commenting parties suggested                 paragraph (h)(28)(i) refers only to the
                                                  Department reviewed the entries and                     that the Department had not offered a                 generator and not the controller. The
                                                  made no change to the paragraph, as it                  sufficient rationale to move to the                   Department updated the paragraph to
                                                  is sufficiently limited in scope to on-                 USML specially designed parts and                     clarify that the referenced threshold
                                                  aircraft arresting gear and excludes                    components for the systems controlled                 excludes the mass of the controller for
                                                                                                          in paragraph (h)(18). The Department                  the purpose of calculating the
                                                  arresting gear used on the ground.
                                                                                                          partially agreed with this comment and                gravimetric power density. The
                                                     One commenting party recommended
                                                                                                          revised the proposed addition. The only               commenter additionally requested
                                                  that paragraph (h)(6) be revised to
                                                                                                          parts and components added to                         clarification as to whether the threshold
                                                  control ‘‘rocket launchers’’ in addition
                                                                                                          paragraph (h)(18) are those that are                  reflects the total heat exchanger capacity
                                                  to ‘‘missile launchers,’’ and further
                                                                                                          specially designed to function after                  or a single heat exchanger. The
                                                  recommended criteria to exclude from                                                                          Department updated the paragraph to
                                                                                                          impact of a 7.62 mm or larger projectile.
                                                  control certain airborne UAV launching                                                                        address the concerns expressed in the
                                                                                                          This is the same criterion that applies to
                                                  capabilities. The Department agreed                                                                           comment.
                                                                                                          the drive systems and flight control
                                                  with the addition of ‘‘rocket launchers’’                                                                       The same commenter asserted that
                                                                                                          systems subject to control under this
                                                  and revised the paragraph accordingly.                                                                        paragraph (h)(28)(iii) lacked clarity and
                                                                                                          paragraph; thus, this paragraph unifies
                                                  However, the Department disagreed                                                                             should be deleted. The Department
                                                                                                          the articles subject to control under a
                                                  with the recommended airborne                                                                                 agreed with this comment and deleted
                                                                                                          common parameter of military
                                                  launching criteria, as the ability to                   criticality.                                          the paragraph. Consequentially,
                                                  deploy a UAV from an aircraft in flight                    Two commenters recommended                         proposed paragraph (h)(28)(iv) now
                                                  is a current military capability.                       revisions to enhance the clarity of                   appears in this final rule as paragraph
                                                     A commenting party suggested that                    paragraph (h)(20). This paragraph                     (h)(28)(iii). Additionally, the commenter
                                                  the Department had not offered a                        pertains to classified defense articles               requested clarification regarding the
                                                  sufficient rationale to move to the                     and classified information, and                       conditions for measuring the threshold
                                                  USML specially designed parts and                       replicates the structure of similar entries           in proposed paragraph (h)(28)(iv). The
                                                  components for the systems controlled                   in other revised USML categories that                 Department did not insert additional
                                                  in paragraph (h)(7). The Department                     are outside of the scope of this rule. To             criteria regarding measurement
                                                  agreed with this comment and deleted                    maintain conformity with those entries,               conditions because the paragraph as
                                                  the proposed addition. The disposition                  the Department has noted these                        drafted describes the threshold for ITAR
                                                  of the relevant parts and components                    commenters’ recommendations and will                  control at a sufficient level of
                                                  will be addressed in the Department of                  reconsider them in the context of a later             granularity.
                                                  Commerce’s companion rule.                              review of all USML entries relating to                  A commenter proposed revisions to
                                                     A commenting party recommended                       classified defense articles and classified            proposed paragraph (h)(29) to better
                                                  that paragraph (h)(8) be merged with                    information.                                          articulate the scope of software to be
                                                  paragraph (h)(12), in order to create a                    Four commenting parties asserted that              controlled. A second commenter
                                                  single paragraph for flight control                     the proposed paragraph (h)(27) did not                recommended deletion of the paragraph,
                                                  systems that excludes commercial UAV                    control articles providing a critical                 since algorithms and software are
                                                  ‘‘sense-and-avoid’’ capabilities. The                   military advantage, would control                     already controlled as technical data. The
                                                  Department observes that the ability of                 variable speed gearboxes in commercial                Department agreed with the second
                                                  the subject UAVs to ‘‘avoid collisions’’                use, or would otherwise limit                         commenter and deleted the proposed
                                                  is only one aspect of the control                       commercial development utilizing such                 paragraph, having determined that the
                                                  parameter, which also requires the                      technology. The Department notes that                 subject software is already controlled
                                                  capability to ‘‘stay together’’ by virtue of            former paragraph (h)(2), prior to the                 under paragraph (i).
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                                                  the subject flight control system. No                   revisions set forth in this rule,                       Three commenters suggested that
                                                  example has been presented of a                         controlled ‘‘variable speed gearboxes’’               proposed paragraph (h)(30) would result
                                                  commercial UAV flight control system                    generally. Accordingly, the proposed                  in expense to industry with
                                                  that provides the capability for multiple               paragraph (h)(27) constituted a                       questionable regulatory benefit, and
                                                  UAVs to both ‘‘avoid collisions’’ and                   reduction in the range of variable speed              would require the re-review of certain
                                                  ‘‘stay together.’’ Accordingly, the                     gearboxes subject to the ITAR to those                parts and components to determine
                                                  Department did not revise the                           employed in next-generation military                  whether classification under the new
                                                  paragraph.                                              technology. In light of the comments                  paragraph is appropriate.


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                                                  83130            Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations

                                                     The Department notes that Category                   performance criteria meriting control,                read ‘‘controlled in Category VIII.’’ The
                                                  VIII was among the first two categories                 while paragraph (b)(2) is revised to                  Department partially agreed and revised
                                                  to undergo revision pursuant to the ECR                 clarify the specific power threshold                  the phrase to read ‘‘controlled in this
                                                  initiative, a primary goal of which was                 specified therein.                                    subchapter.’’
                                                  to create a ‘‘positive list’’ that would                   Paragraph (c) is modified to                          A commenter recommended the
                                                  inevitably require periodic revisions to                incorporate conforming and technical                  removal of the GE38 engine from
                                                  keep reflective of the current state of                 changes and to make clear that the                    paragraph (d), indicating that it is a
                                                  technology. The experience of industry                  paragraph applies only to gas turbine                 marketing name that was used during
                                                  with the earliest revised categories, as                engines, while paragraph (d) is modified              the development of the T408 and will
                                                  well as the U.S. government in                          to update the list of subject engines. The            not be used in production. The
                                                  enforcing the regulations, has identified               Note to paragraph (e) is modified to                  Department agrees with this observation
                                                  areas in which adjustments to                           incorporate a conforming change.                      but also notes that GE38 models remain
                                                  Categories VIII and XIX were necessary                     Several changes are included within                in use in test aircraft. Accordingly, the
                                                  to best articulate the articles subject to              paragraph (f). Paragraph (f)(1) is                    GE38 reference will remain in paragraph
                                                  control.                                                modified to incorporate technical                     (d) while such engines are still in use.
                                                     The former treatment of equipment in                 corrections and to update the list of                    One commenter recommended the
                                                  paragraph (h)(1) potentially created the                subject engines. Paragraph (f)(2)                     removal of the MT7 engine from
                                                  impression that equipment for                           introduces additional text to clarify the             paragraph (d), arguing that it is a
                                                  enumerated aircraft was broadly                         scope of controlled hot section                       derivative of the AE1107C and that oil
                                                  controlled under that paragraph. For                    components, and to reorganize the text                sump sealing is being designed out of
                                                  additional clarity, a newly-created                     according to the nature of the articles.              the model. While the comment appears
                                                  paragraph, now found at (h)(29),                        New controls are included in                          to describe a design modification that
                                                  enumerates certain types of equipment                   paragraphs (f)(7) through (f)(12).                    has not yet occurred, the Department
                                                  that merit ITAR control. While the                         A commenter asserted that the PT6C–                further notes that the subject engine is
                                                  Department’s review considered in all                   67A, a commercial model, would                        unique to a destroyer platform. For
                                                  cases the potential impact to industry in               exceed the threshold proposed in                      these reasons, the MT7 was retained in
                                                  revising aspects of these categories, the               paragraph (b)(1). In response to this                 paragraph (d).
                                                  primary standard of review was the                      comment, the Department increased the                    The Department has removed the
                                                  ‘‘critical military or intelligence                     relevant threshold to 2000 mechanical                 TF60 engine from paragraph (d) in
                                                  advantage’’ standard set forth in ITAR                  shp (1491 kW).                                        response to a public comment that
                                                  § 120.3(b). As a general principle, where                  Three commenting parties                           recommended its removal.
                                                  migration of items from the CCL to the                  recommended clarification regarding                      A commenter questioned whether the
                                                  USML was considered, the Department                     the specific power threshold set forth in             word ‘‘systems’’ in paragraph (e) should
                                                  sought first to accommodate the item in                 paragraph (b)(2). The Department agreed               be interpreted to also indicate controls
                                                  a revised ECCN. The articles that newly                 with these commenters and revised the                 of parts and components thereof. The
                                                  appear on or have returned to the USML                  relevant language to include a unit of                Department confirms that paragraph (e)
                                                  in this rule are those that constitute or               measurement for the specific power                    is limited to specified systems and
                                                  are specially designed for next-                        threshold and maximum takeoff shaft                   includes no reference to ‘‘parts and
                                                  generation technology and thus satisfy                  horsepower. The Department further                    components thereof’’; accordingly, parts
                                                  ITAR § 120.3. In response to comments                   notes that given the additional                       and components thereof are not
                                                  received, the Department revised the                    modifications to paragraph (b)(2)                     controlled under paragraph (e).
                                                  paragraph to better articulate the                      described below, and the requirement                     Two comments asserted, with respect
                                                  specific types of equipment that meet                   that an engine must meet all of the                   to paragraph (f) as well as several
                                                  this standard.                                          criteria of paragraph (b)(2) to be subject            paragraphs thereof, that materials
                                                     Finally, a commenter recommended                     to ITAR control, the revised paragraph                should not be controlled in this category
                                                  replacing the words ‘‘technical data’’ in               should not pose a risk of capturing next-             because Category XIII is intended to
                                                  paragraph (x) with ‘‘technology,’’ to                   generation commercial engine models.                  contain all materials entries. The
                                                  align the text with other revised                          Two commenters asserted that the                   Department disagreed in part with these
                                                  categories and utilize the appropriate                  term ‘‘armament gas’’ in paragraph (b)(2)             comments. Where the materials at issue
                                                  EAR terminology. The Department                         is unclear and requested a definition.                pertain only to a particular class of
                                                  agreed and made the recommended                         The Department disagreed with the                     defense articles that are controlled in a
                                                  change.                                                 commenters because the term can be                    single subcategory—as with these
                                                                                                          interpreted based on the plain meaning                materials relevant only to gas turbine
                                                  Revision of Category XIX                                of the words ‘‘armament gas                           engines controlled in Category XIX—
                                                    This final rule revises USML Category                 ingestion’’—that is, the term describes               there is little utility in requiring the
                                                  XIX, covering gas turbine engines. As                   an engine that is specially designed to               reader to review multiple USML
                                                  with USML Category VIII, the revisions                  ingest gas released from armaments.                   categories for articles of potential
                                                  are undertaken in order to ensure that                     Three commenting parties requested                 relevance. Were these materials of broad
                                                  the category is clear, does not                         clarification regarding the term                      applicability for a variety of defense
                                                  inadvertently control items in normal                   ‘‘transient maneuvers’’ in paragraph                  articles controlled under more than one
                                                  commercial use, accounts for                            (b)(2), and requested revision to capture             USML category, the Department would
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                                                  technological developments, and                         only maneuvers that are unique to                     locate the relevant USML entries in
                                                  properly implements the national                        military scenarios. The Department                    Category XIII. However, in this case,
                                                  security and foreign policy objectives of               agreed with these comments and revised                ECCN 9C619 remains the appropriate
                                                  the ECR initiative.                                     the parameter to capture non-civil                    category for the materials described in
                                                    Paragraph (a) is modified to clarify the              transient maneuvers.                                  the proposed rule. The companion rule
                                                  scope of controlled engines and to                         Three commenting parties suggested                 the Commerce Department has
                                                  incorporate technical corrections.                      that the phrase ‘‘controlled in this                  published explains the new licensing
                                                  Paragraph (b)(1) is revised to update the               category’’ in paragraph (c) be revised to             policies pertaining to such materials. No


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                                                                   Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations                                        83131

                                                  new materials controls are added to                     current state of technology. The                      enumerate certain types of equipment
                                                  Category XIX.                                           experience of industry with the earliest              that is specially designed for a defense
                                                     Two commenting parties                               revised categories, as well as the U.S.               article described in paragraph (f)(1).
                                                  recommended the exclusion from                          government in enforcing the regulations,                 Finally, a commenter recommended
                                                  paragraph (f)(1) of those parts identified              has identified areas in which                         replacing the words ‘‘technical data’’ in
                                                  in ECCNs 9A610.y or 9A619.y. The                        adjustments to Categories VIII and XIX                paragraph (x) with ‘‘technology,’’ to
                                                  Department disagreed with this                          were necessary to best articulate the                 align the text with other revised
                                                  comment for reasons similar to those                    articles subject to control.                          categories and utilize the appropriate
                                                  explained above in the context of a                        While the Department’s review                      EAR terminology. The Department
                                                  similar comment on Category VIII(h)(1),                 considered in all cases the potential                 agreed and made the recommended
                                                  regarding the different structures and                  impact to industry in revising aspects of             change.
                                                  objectives of CCL ECCNs as well as the                  these categories, the primary standard of
                                                                                                                                                                Regulatory Findings
                                                  national security interest in retaining                 review was the ‘‘critical military or
                                                  control over the parts and components                   intelligence advantage’’ standard set                 Administrative Procedure Act
                                                  of engines with evolving or next-                       forth in ITAR § 120.3(b). As a general                   The Department of State is of the
                                                  generation applications.                                principle, where a migration of items                 opinion that controlling the import and
                                                     One commenter expressed concern                      from the CCL to the USML was                          export of defense articles and services is
                                                  regarding the removal of the word                       considered, the Department sought first               a foreign affairs function of the United
                                                  ‘‘equipment’’ from paragraph (f)(1). As                 to accommodate the item in a revised                  States Government and that rules
                                                  with Category VIII(h)(1), the word was                  ECCN. The articles that nevertheless                  implementing this function are exempt
                                                  removed to avoid the impression that all                appear in new USML entries in this rule               from sections 553 (Rulemaking) and 554
                                                  equipment, including production                         constitute or are specially designed for              (Adjudications) of the Administrative
                                                  equipment, relevant to the enumerated                   next-generation technology and thus                   Procedure Act (APA). Although the
                                                  aircraft was subject to control under this              satisfy ITAR § 120.3.                                 Department is of the opinion that this
                                                  paragraph. The Department has created                      The Department disagrees with the                  rule is exempt from the rulemaking
                                                  a new paragraph (f)(12), which appeared                 commenters’ characterization of                       provisions of the APA, the Department
                                                  in the proposed rule as proposed                        proposed paragraph (f)(16), now                       published this rule as a proposed rule
                                                  paragraph (f)(16), to enumerate certain                 appearing as paragraph (f)(12), which                 (81 FR 6797) with a 45-day provision for
                                                  types of equipment that merit control.                  controls certain enumerated types of                  public comment and without prejudice
                                                     Three commenters requested                           equipment. Since ‘‘equipment’’ was                    to its determination that controlling the
                                                  clarification of the word ‘‘actively’’ in               referenced generally in the previous                  import and export of defense services is
                                                  paragraph (f)(2), and requested the                     iteration of paragraph (f), the objective             a foreign affairs function.
                                                  addition of a definition. The Department                of this addition is to better clarify the
                                                  agreed that the term, which first                       equipment subject to ITAR control.                    Regulatory Flexibility Act
                                                  appeared in the proposed rule, did not                  With respect to the remaining proposed                   Since this rule is exempt from the
                                                  improve the clarity of the paragraph and                paragraphs, the Department applied this               rulemaking provisions of 5 U.S.C. 553,
                                                  deleted each instance of the term.                      standard and determined that proposed                 it does not require analysis under the
                                                     A commenting party recommended                       paragraphs (f)(7), (f)(13), (f)(14), and              Regulatory Flexibility Act.
                                                  the reorganization of paragraph (f)(2) to               (f)(15) were not necessary for inclusion
                                                  refer to ‘‘intermediate pressure turbine                in the USML. Accordingly, these                       Unfunded Mandates Reform Act of 1995
                                                  blades’’ after ‘‘high pressure turbine                  proposed paragraphs have been deleted.                  This amendment does not involve a
                                                  blades’’ and before ‘‘low pressure                      The considerations that prompted the                  mandate that will result in the
                                                  turbine blades.’’ The Department agreed                 addition of proposed paragraph (f)(7) are             expenditure by State, local, and tribal
                                                  and revised the paragraph accordingly.                  adequately addressed through paragraph                governments, in the aggregate, or by the
                                                     A commenting party expressed                         (g), while the remaining deleted                      private sector, of $100 million or more
                                                  difficulty interpreting the meaning of                  proposed entries will be addressed by                 in any year and it will not significantly
                                                  ‘‘engine monitoring systems’’ in                        the Department of Commerce in ECCN                    or uniquely affect small governments.
                                                  paragraph (f)(5) and suggested that a                   9C619.                                                Therefore, no actions were deemed
                                                  definition of the term might be                            The Department retained proposed                   necessary under the provisions of the
                                                  beneficial. The Department disagreed                    paragraph (f)(8), now appearing in the                Unfunded Mandates Reform Act of
                                                  with the comment because the term can                   category as paragraph (f)(7), because the             1995.
                                                  be sufficiently understood without a                    referenced equipment allows for the
                                                  new definition, given the existing                      production of gas turbine engines and                 Small Business Regulatory Enforcement
                                                  definition of ‘‘system’’ set forth in ITAR              parts and components that offer a                     Fairness Act of 1996
                                                  § 120.45(g).                                            critical military advantage.                            This amendment has been found not
                                                     Four parties commented generally on                     Among the retained new paragraphs                  to be a major rule within the meaning
                                                  the new paragraphs that appeared in the                 and in response to public comments, the               of the Small Business Regulatory
                                                  proposed rule as (f)(7) through (f)(16),                Department revised proposed                           Enforcement Fairness Act of 1996.
                                                  arguing that USML control of the subject                paragraphs (f)(9) through (f)(12)—now
                                                  articles will result in expense to                      appearing as paragraphs (f)(8) through                Executive Orders 12372 and 13132
                                                  industry by requiring reclassification of               (f)(11)—to reference only systems                        This amendment will not have
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                                                  articles previously subject to the EAR.                 specially designed for gas turbine                    substantial direct effects on the States,
                                                  As with Category VIII, described above,                 engines controlled in Category XIX, in                on the relationship between the national
                                                  Category XIX was among the first two                    order to avoid a chilling effect on                   government and the States, or on the
                                                  categories to undergo revision pursuant                 potential commercial applications of                  distribution of power and
                                                  to the ECR initiative, a primary goal of                these technologies.                                   responsibilities among the various
                                                  which was to create a ‘‘positive list’’                    The Department revised proposed                    levels of government. Therefore, in
                                                  that would inevitably require periodic                  paragraph (f)(16), now appearing in this              accordance with Executive Order 13132,
                                                  revisions to keep reflective of the                     final rule as paragraph (f)(12), to                   it is determined that this amendment


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                                                  83132            Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations

                                                  does not have sufficient federalism                       (2) Application/License for Permanent               purpose of performing an intelligence,
                                                  implications to require consultations or                Export of Unclassified Defense Articles               surveillance, and reconnaissance
                                                  warrant the preparation of a federalism                 and Related Unclassified Technical                    function;
                                                  summary impact statement. The                           Data, DSP–5, OMB No. 1405–0003.                          * (8) Aircraft specially designed to
                                                  regulations implementing Executive                        (3) Application/License for                         incorporate a defense article for the
                                                  Order 12372 regarding                                   Temporary Import of Unclassified                      purpose of performing an electronic
                                                  intergovernmental consultation on                       Defense Articles, DSP–61, OMB No.                     warfare function; airborne warning and
                                                  Federal programs and activities do not                  1405–0013.                                            control aircraft; or aircraft specially
                                                  apply to this amendment.                                  (4) Application/License for                         designed to incorporate a defense article
                                                                                                          Temporary Export of Unclassified                      for the purpose of performing a
                                                  Executive Order 12866 and 13563                                                                               command, control, and communications
                                                                                                          Defense Articles, DSP–73, OMB No.
                                                     Executive Orders 12866 and 13563                     1405–0023.                                            function;
                                                  direct agencies to assess all costs and                   (5) Application for Amendment to                       (9) Aircraft specially designed to
                                                  benefits of available regulatory                        License for Export or Import of                       incorporate a defense article for the
                                                  alternatives and, if regulation is                      Classified or Unclassified Defense                    purpose of performing an air refueling
                                                  necessary, to select regulatory                         Articles and Related Technical Data,                  function;
                                                  approaches that maximize net benefits                   DSP–6, –62, –74, –119, OMB No. 1405–                     (10) Target drones;
                                                  (including potential economic,                          0092.                                                    (11) [Reserved]
                                                  environmental, public health and safety                   (6) Request for Approval of                            (12) Aircraft capable of being refueled
                                                  effects, distributed impacts, and equity).              Manufacturing License Agreements,                     in-flight including hover-in-flight
                                                  Executive Order 13563 emphasizes the                    Technical Assistance Agreements, and                  refueling (HIFR);
                                                  importance of quantifying both costs                    Other Agreements, DSP–5, OMB No.                         (13) [Reserved]
                                                  and benefits, of reducing costs, of                     1405–0093.                                               (14) Aircraft with a roll-on/roll-off
                                                  harmonizing rules, and of promoting                       (7) Maintenance of Records by                       ramp, capable of airlifting payloads over
                                                  flexibility. This rule has been                         Registrants, OMB No. 1405–0111.                       35,000 lbs. to ranges over 2,000 nm
                                                  designated a ‘‘significant regulatory                                                                         without being refueled in-flight, and
                                                                                                          List of Subjects in 22 CFR Part 121                   landing onto short or unimproved
                                                  action,’’ although not economically
                                                  significant, under section 3(f) of                        Arms and munitions, Exports.                        airfields, other than L–100 and LM–100J
                                                  Executive Order 12866. Accordingly,                       Accordingly, for the reasons set forth              aircraft;
                                                  the rule has been reviewed by the Office                above, Title 22, Chapter I, Subchapter                   * (15) Aircraft not enumerated in
                                                  of Management and Budget (OMB).                         M, part 121 is amended as follows:                    paragraphs (a)(1) through (a)(14) as
                                                                                                                                                                follows:
                                                  Executive Order 12988                                   PART 121—THE UNITED STATES                               (i) U.S.-origin aircraft that bear an
                                                                                                          MUNITIONS LIST                                        original military designation of A, B, E,
                                                     The Department of State has reviewed
                                                                                                                                                                F, K, M, P, R, or S; or
                                                  the amendment in light of sections 3(a)
                                                                                                          ■ 1. The authority citation for part 121                 (ii) Foreign-origin aircraft specially
                                                  and 3(b)(2) of Executive Order 12988 to
                                                                                                          continues to read as follows:                         designed to provide functions
                                                  eliminate ambiguity, minimize
                                                                                                            Authority: Secs. 2, 38, and 71, Pub. L. 90–         equivalent to those of the aircraft listed
                                                  litigation, establish clear legal
                                                                                                          629, 90 Stat. 744 (22 U.S.C. 2752, 2778,              in paragraph (a)(15)(i) of this category;
                                                  standards, and reduce burden.
                                                                                                          2797); 22 U.S.C. 2651a; Pub. L. 105–261, 112          or
                                                  Executive Order 13175                                   Stat. 1920; Section 1261, Pub. L. 112–239;               (16) Aircraft that are armed or are
                                                                                                          E.O. 13637, 78 FR 16129.                              specially designed to be used as a
                                                    The Department of State has                                                                                 platform to deliver munitions or
                                                  determined that this rulemaking will                    ■ 2. Section 121.1 is amended by
                                                                                                          revising U.S. Munitions List Categories               otherwise destroy targets (e.g., firing
                                                  not have tribal implications, will not                                                                        lasers, launching rockets, firing missiles,
                                                  impose substantial direct compliance                    VIII and XIX to read as follows:
                                                                                                                                                                dropping bombs, or strafing);
                                                  costs on Indian tribal governments, and                 § 121.1    The United States Munitions List.             Note 1 to paragraph (a): Aircraft specially
                                                  will not preempt tribal law.                            *      *      *      *       *                        designed for military applications that are
                                                  Accordingly, Executive Order 13175                                                                            not identified in paragraph (a) of this section
                                                  does not apply to this rulemaking.                      Category VIII—Aircraft and Related                    are subject to the EAR and classified as ECCN
                                                                                                          Articles                                              9A610, including any model of unarmed
                                                  Paperwork Reduction Act
                                                                                                             (a) Aircraft, whether manned,                      military aircraft manufactured prior to 1956,
                                                    Following is a listing of approved                    unmanned, remotely piloted, or                        regardless of origin or designation, and
                                                  collections that will be affected by                    optionally piloted, as follows (MT if the             unmodified since manufacture. Aircraft with
                                                  revision of the U.S. Munitions List                                                                           modifications made to incorporate safety of
                                                                                                          aircraft, excluding manned aircraft, has              flight features or other FAA or NTSB
                                                  (USML) and the Commerce Control List                    a range equal to or greater than 300 km):             modifications such as transponders and air
                                                  pursuant to the President’s Export                         * (1) Bombers;                                     data recorders are considered ‘‘unmodified’’
                                                  Control Reform (ECR) initiative. This                      * (2) Fighters, fighter bombers, and               for the purposes of this paragraph.
                                                  rule continues the implementation of                    fixed-wing attack aircraft;                              Note 2 to paragraph (a): ‘‘Range’’ is the
                                                  ECR. The list of collections pertains to                   * (3) Turbofan- or turbojet-powered                maximum distance that the specified aircraft
                                                  revision of the USML in its entirety, not               trainers used to train pilots for fighter,            system is capable of traveling in the mode of
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                                                  only to the categories published in this                attack, or bomber aircraft;                           stable flight as measured by the projection of
                                                  rule. The Department is not proposing                      * (4) Attack helicopters;                          its trajectory over the surface of the Earth.
                                                  or making changes to these collections                                                                        The maximum capability based on the design
                                                                                                             * (5) Unmanned aerial vehicles
                                                  in this rule. The information collections                                                                     characteristics of the system, when fully
                                                                                                          (UAVs) specially designed to                          loaded with fuel or propellant, will be taken
                                                  impacted by the ECR initiative are as                   incorporate a defense article;                        into consideration in determining range. The
                                                  follows:                                                   * (6) [Reserved]                                   range for aircraft systems will be determined
                                                    (1) Statement of Registration, DS–                       * (7) Aircraft specially designed to               independently of any external factors such as
                                                  2032, OMB No. 1405–0002.                                incorporate a defense article for the                 operational restrictions, limitations imposed



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                                                                   Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations                                         83133

                                                  by telemetry, data links, or other external             paragraph (h)(1), and those identified in             excluding manned aircraft, or missile
                                                  constraints. For aircraft systems, the range            paragraph (h)(1). For example, when                   that has a ‘‘range’’ equal to or greater
                                                  will be determined for a one-way distance               applying § 120.41(b)(3), a part common to             than 300 km);
                                                  using the most fuel-efficient flight profile            only the F–16 and F–35 is not specially                  (7) Damage or failure-adaptive flight
                                                  (e.g., cruise speed and altitude), assuming             designed for purposes of this paragraph. A
                                                                                                                                                                control systems, that do not consist
                                                  International Civil Aviation Organization               part common to only the F–22 and F–35—
                                                  (ICAO) standard atmosphere with zero wind,              two aircraft models identified in paragraph           solely of redundant internal circuitry,
                                                  but with no fuel reserve.                               (h)(1)—is specially designed for purposes of          specially designed for aircraft controlled
                                                                                                          this paragraph, unless one of the other               in this category;
                                                    (b)–(c) [Reserved]                                                                                             (8) Threat-adaptive autonomous flight
                                                    (d) Launching and recovery                            paragraphs is applicable under § 120.41(b) of
                                                                                                          this subchapter.                                      control systems, where a ‘‘threat-
                                                  equipment specially designed to allow                                                                         adaptive autonomous flight control
                                                  an aircraft described in paragraph (a) of                 (2) Rotorcraft gearboxes with internal
                                                                                                          pitch line velocities exceeding 20,000                system’’ is a flight control system that,
                                                  this category to take off or land on a                                                                        without input from the operator or pilot,
                                                  vessel described in Category VI                         feet per minute and able to operate 30
                                                                                                          minutes with loss of lubrication without              adjusts the aircraft control or flight path
                                                  paragraphs (a) through (c) (MT if the                                                                         to minimize risk caused by hostile
                                                  launching and recovery equipment is for                 an emergency or auxiliary lubrication
                                                                                                          system, and specially designed parts                  threats;
                                                  an aircraft, excluding manned aircraft,                                                                          (9) Non-surface-based flight control
                                                  that has a range equal to or greater than               and components therefor;
                                                                                                                                                                systems and effectors (e.g., thrust
                                                  300 km).                                                   Note to paragraph (h)(2): Loss of                  vectoring from gas ports other than main
                                                    Note to paragraph (d): For the definition             lubrication means a situation where oil/              engine thrust vector);
                                                  of ‘‘range,’’ see note to paragraph (a) of this         lubrication is mostly or completely lost from            (10) Radar altimeters with output
                                                  category.                                               a transmission/gearbox such that only a
                                                                                                                                                                power management LPI (low probability
                                                                                                          residual coating remains due to the
                                                    (e) [Reserved]                                        lubrication system failure.                           of intercept) or signal modulation (i.e.,
                                                    (f) Developmental aircraft funded by                                                                        frequency hopping, chirping, direct
                                                                                                             (3) Tail boom folding systems,                     sequence-spectrum spreading) LPI
                                                  the Department of Defense via contract
                                                                                                          stabilator folding systems or automatic               capabilities (MT if for an aircraft,
                                                  or other funding authorization, and
                                                                                                          rotor blade folding systems, and                      excluding manned aircraft, or missile
                                                  specially designed parts, components,
                                                                                                          specially designed parts and                          that has a ‘‘range’’ equal to or greater
                                                  accessories, and attachments therefor.
                                                                                                          components therefor;                                  than 300 km);
                                                     Note 1 to paragraph (f): This paragraph
                                                                                                             (4) Wing folding systems, and                         (11) Air-to-air refueling systems and
                                                  does not control aircraft and specially
                                                  designed parts, components, accessories, and            specially designed parts and                          hover-in-flight refueling (HIFR) systems,
                                                  attachments therefor (a) in production; (b)             components therefor, for:                             and specially designed parts and
                                                  determined to be subject to the EAR via a                  (i) Aircraft powered by power plants               components therefor;
                                                  commodity jurisdiction determination (see               controlled under USML Category IV(d);                    (12) Unmanned aerial vehicle (UAV)
                                                  § 120.4 of this subchapter), or (c) identified          or                                                    flight control systems and vehicle
                                                  in the relevant Department of Defense                      (ii) Aircraft with any of the following            management systems with swarming
                                                  contract or other funding authorization as              characteristics and powered by gas                    capability (i.e., UAVs interact with each
                                                  being developed for both civil and military             turbine engines:                                      other to avoid collisions and stay
                                                  applications.                                              (A) The portion of the wing outboard
                                                     Note 2 to paragraph (f): Note 1 does not                                                                   together, or, if weaponized, coordinate
                                                                                                          of the wing fold is required for                      targeting) (MT if for an aircraft,
                                                  apply to defense articles enumerated on the
                                                  U.S. Munitions List, whether in production              sustained flight;                                     excluding manned aircraft, or missile
                                                  or development.                                            (B) Fuel can be stored outboard of the             that has a ‘‘range’’ equal to or greater
                                                     Note 3 to paragraph (f): This paragraph is           wing fold;                                            than 300 km);
                                                  applicable only to those contracts, other                  (C) Control surfaces are outboard of                  (13) [Reserved]
                                                  funding authorizations, or modifications                the wing fold;                                           (14) Lift fans, clutches, and roll posts
                                                  initiating development of a new defense                    (D) Hard points are outboard of the                for short take-off, vertical landing
                                                  article that are dated April 16, 2014, or later.        wing fold;                                            (STOVL) aircraft and specially designed
                                                     (g) [Reserved]                                          (E) Hard points inboard of the wing                parts and components for such lift fans
                                                     (h) Parts, components, accessories,                  fold allow for in-flight ejection; or                 and roll posts;
                                                  attachments, associated equipment and                      (F) The aircraft is designed to                       (15) Integrated helmets incorporating
                                                  systems, as follows:                                    withstand maximum vertical                            optical sights or slewing devices, which
                                                     (1) Parts, components, accessories,                  maneuvering accelerations greater than                include the ability to aim, launch, track,
                                                  and attachments specially designed for                  +3.5g/¥1.5g.                                          or manage munitions (e.g., Helmet
                                                  the following U.S.-origin aircraft: The                    (5) On-aircraft arresting gear (e.g., tail         Mounted Cueing Systems, Joint Helmet
                                                  B–1B, B–2, B–21, F–15SE, F/A–18 E/F,                    hooks and drag chutes) and specially                  Mounted Cueing Systems (JHMCS),
                                                  EA–18G, F–22, F–35, and future                          designed parts and components                         Helmet Mounted Displays, Display and
                                                  variants thereof; or the F–117 or U.S.                  therefor;                                             Sight Helmets (DASH)), and specially
                                                  Government technology demonstrators.                       (6) Bomb racks, missile or rocket                  designed parts, components,
                                                  Parts, components, accessories, and                     launchers, missile rails, weapon pylons,              accessories, and attachments therefor;
                                                  attachments of the F–15SE and F/A–18                    pylon-to-launcher adapters, unmanned                     (16) Fire control computers, stores
                                                  E/F that are common to earlier models                   aerial vehicle (UAV) airborne launching               management systems, armaments
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                                                  of these aircraft, unless listed in                     systems, external stores support systems              control processors, and aircraft-weapon
                                                  paragraph (h) of this category, are                     for ordnance or weapons, and specially                interface units and computers (e.g.,
                                                  subject to the EAR;                                     designed parts and components therefor                AGM–88 HARM Aircraft Launcher
                                                    Note to paragraph (h)(1): This paragraph
                                                                                                          (MT if the bomb rack, missile launcher,               Interface Computer (ALIC));
                                                  does not control parts, components,                     missile rail, weapon pylon, pylon-to-                    (17) Mission computers, vehicle
                                                  accessories, and attachments that are                   launcher adapter, UAV airborne                        management computers, and integrated
                                                  common to aircraft described in paragraph (a)           launching system, or external stores                  core processers specially designed for
                                                  of this category but not identified in                  support system is for an aircraft,                    aircraft controlled in this category;


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                                                  83134            Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations

                                                     (18) Drive systems, flight control                   category and classified technical data                   * (c) Gas turbine engines (including
                                                  systems, and parts and components                       directly related to items controlled in               technology demonstrators,
                                                  therefor, specially designed to function                ECCNs 9A610, 9B610, 9C610, and                        developmental engines, and variable
                                                  after impact of a 7.62mm or larger                      9D610 and defense services using                      cycle engines) specially designed for
                                                  projectile;                                             classified technical data. (See § 125.4 of            unmanned aerial vehicle systems
                                                     (19) Thrust reversers specially                      this subchapter for exemptions.) (MT for              controlled in this subchapter, cruise
                                                  designed to be deployed in flight for                   technical data and defense services                   missiles, or target drones (MT if for an
                                                  aircraft controlled in this category;                   related to articles designated as such.)              engine used in an aircraft, excluding
                                                     * (20) Any part, component,                            (j)–(w) [Reserved]                                  manned aircraft, or missile that has a
                                                  accessory, attachment, equipment, or                      (x) Commodities, software, and                      ‘‘range’’ equal to or greater than 300
                                                  system that:                                            technology subject to the EAR (see                    km).
                                                     (i) Is classified;                                   § 120.42 of this subchapter) used in or                  * (d) GE38, AGT1500, CTS800, MT7,
                                                     (ii) Contains classified software                    with defense articles controlled in this              T55, HPW3000, GE3000, T408, and
                                                  directly related to defense articles in                 category.                                             T700 engines.
                                                  this subchapter or 600 series items                        Note to paragraph (x): Use of this                   Note to paragraph (d): Engines subject to
                                                  subject to the EAR; or                                  paragraph is limited to license applications          the control of this paragraph are licensed by
                                                     (iii) Is being developed using                       for defense articles controlled in this category      the Department of Commerce when
                                                  classified information.                                 where the purchase documentation includes             incorporated in an aircraft subject to the EAR
                                                    Note to paragraph (h)(20): Classified                 commodities, software, or technology subject          and controlled under ECCN 9A610. Such
                                                  means classified pursuant to Executive Order            to the EAR (see § 123.1(b) of this subchapter).       engines are subject to the controls of the
                                                  13526, or predecessor order, and a security                Note: Parts, components, accessories, and          ITAR in all other circumstances.
                                                  classification guide developed pursuant                 attachments in paragraphs (h)(3)–(5), (7),
                                                                                                          (14), (17), or (19) are licensed by the
                                                                                                                                                                   * (e) Digital engine control systems
                                                  thereto or equivalent, or to the corresponding                                                                (e.g., Full Authority Digital Engine
                                                  classification rules of another government or           Department of Commerce when incorporated
                                                                                                          in an aircraft subject to the EAR and                 Controls (FADEC) and Digital Electronic
                                                  international organization;
                                                                                                          classified under ECCN 9A610. Replacement              Engine Controls (DEEC)) specially
                                                     (21)–(26) [Reserved]                                 systems, parts, components, accessories and           designed for gas turbine engines
                                                     (27) Variable speed gearboxes, where                 attachments are subject to the controls of the        controlled in this category (MT if the
                                                  a ‘‘variable speed gearbox’’ has the                    ITAR.                                                 digital engine control system is for an
                                                  ability to vary the gearbox output speed                                                                      aircraft, excluding manned aircraft, or
                                                                                                          *      *      *      *       *
                                                  by mechanical means within the                                                                                missile that has a range equal to or
                                                  gearbox while the gearbox input speed                   Category XIX—Gas Turbine Engines                      greater than 300 km).
                                                  from the engine or other source is                      and Associated Equipment
                                                                                                                                                                   Note to paragraph (e): Digital electronic
                                                  constant, and is capable of varying                        * (a) Turbofan and Turbojet engines                control systems autonomously control the
                                                  output speed by 20% or greater and                      (including those that are technology                  engine throughout its whole operating range
                                                  providing power to rotors, proprotors,                  demonstrators, developmental engines,                 from demanded engine start until demanded
                                                  propellers, propfans, or liftfans; and                  or variable cycle engines) capable of                 engine shut-down, in both normal and fault
                                                  specially designed parts and                            15,000 lbf (66.7 kN) of thrust or greater             conditions.
                                                  components therefor;                                    that have any of the following:                          (f) Parts, components, accessories,
                                                     (28) Electrical power or thermal                                                                           attachments, associated equipment, and
                                                                                                             (1) With or specially designed for
                                                  management systems specially designed                                                                         systems as follows:
                                                                                                          thrust augmentation (afterburner);
                                                  for an engine controlled in Category XIX                                                                         (1) Parts, components, accessories,
                                                                                                             (2) Thrust or exhaust nozzle
                                                  and having any of the following:                                                                              and attachments specially designed for
                                                                                                          vectoring;
                                                     (i) Electrical power generators that                                                                       the following U.S.-origin engines (and
                                                  provide greater than 300kW of electrical                   (3) Parts or components controlled in
                                                                                                          paragraph (f)(6) of this category;                    military variants thereof): F101, F107,
                                                  power (per generator) with gravimetric                                                                        F112, F118, F119, F120, F135, F136,
                                                  power densities exceeding 2kW/pound                        (4) Specially designed for sustained
                                                                                                          30 second inverted flight or negative g               F414, F415, and J402;
                                                  (excluding the mass of the controller for
                                                  the purpose of calculating the                          maneuver; or                                             Note to paragraph (f)(1): This paragraph
                                                  gravimetric power density);                                (5) Specially designed for high power              does not control parts, components,
                                                                                                          extraction (greater than 50 percent of                accessories, and attachments that are
                                                     (ii) Heat exchangers that exchange 60
                                                                                                          engine thrust at altitude) at altitudes               common to engines enumerated in paragraph
                                                  kW/K-m3 or 1 kW/K of heat or greater                                                                          (a) through (d) of this category but not
                                                  into the gas turbine engine flow path; or               greater than 50,000 feet.
                                                                                                             * (b) Turboshaft and Turboprop                     identified in paragraph (f)(1), and those
                                                     (iii) Direct-cooling thermal electronic                                                                    identified in paragraph (f)(1). For example, a
                                                  package heat exchangers that transfer                   engines (including those that are                     part common to only the F110 and F136 is
                                                  20kW of heat or greater at 100W/cm2 or                  technology demonstrators or                           not specially designed for purposes of this
                                                  greater.                                                developmental engines) that have any of               paragraph. A part common to only the F119
                                                     (29) Any of the following equipment                  the following:                                        and F135—two engine models identified in
                                                  if specially designed for a defense                        (1) Capable of 2000 mechanical shp                 paragraph (f)(1)—is specially designed for
                                                  article described in paragraph (h)(1):                  (1491 kW) or greater and specially                    purposes of this paragraph, unless one of the
                                                     (i) Scale test models;                               designed with oil sump sealing when                   other paragraphs is applicable under
                                                                                                          the engine is in the vertical position; or            § 120.41(b).
                                                     (ii) Full scale iron bird ground rigs
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                                                  used to test major aircraft systems; or                    (2) Capable of a specific power of 225                * (2) Hot section components (i.e.,
                                                     (iii) Jigs, locating fixtures, templates,            shp/(lbm/sec) or greater and specially                combustion chambers and liners; high
                                                  gauges, molds, dies, or caul plates.                    designed for armament gas ingestion                   pressure turbine blades, vanes, disks
                                                     (i) Technical data (see § 120.10 of this             and non-civil transient maneuvers,                    and related cooled structure; cooled
                                                  subchapter) and defense services (see                   where specific power is defined as                    intermediate pressure turbine blades,
                                                  § 120.9 of this subchapter) directly                    maximum takeoff shaft horsepower                      vanes, disks and related cooled
                                                  related to the defense articles described               (shp) divided by compressor inlet flow                structures; cooled low pressure turbine
                                                  in paragraphs (a) through (h) of this                   (lbm/sec).                                            blades, vanes, disks and related cooled


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                                                                   Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations                                          83135

                                                  structures; cooled shaft-driving power                  than one, occurring across any section                ADDRESSES:    All persons who desire to
                                                  turbine blades, vanes, disks and related                of the bypass duct, and specially                     submit written comments for
                                                  cooled structures; cooled augmenters;                   designed parts, components,                           consideration by the Agency regarding
                                                  and cooled nozzles) specially designed                  accessories, and attachments therefor; or             the rule shall mail them to the Agency’s
                                                  for gas turbine engines controlled in this                 (12) Any of the following equipment                Senior Agency Official for Privacy,
                                                  category;                                               if specially designed for a defense                   National Labor Relations Board, 1015
                                                     (3) Uncooled turbine blades, vanes,                  article described in paragraph (f)(1): Jigs,          Half Street SE., Third Floor,
                                                  disks, and tip shrouds specially                        locating fixtures, templates, gauges,                 Washington, DC 20570–0001, or submit
                                                  designed for gas turbine engines                        molds, dies, caul plates, or bellmouths.              them electronically to pac@nlrb.gov.
                                                  controlled in this category;                               (g) Technical data (see § 120.10 of this           Comments may also be submitted
                                                     (4) Combustor cowls, diffusers,                      subchapter) and defense services (see                 electronically through http://
                                                  domes, and shells specially designed for                § 120.9 of this subchapter) directly                  www.regulations.gov, which contains a
                                                  gas turbine engines controlled in this                  related to the defense articles described             copy of this rule and any submitted
                                                  category;                                               in paragraphs (a) through (f) of this                 comments.
                                                     (5) Engine monitoring systems (i.e.,                 category and classified technical data
                                                                                                                                                                FOR FURTHER INFORMATION CONTACT:
                                                  prognostics, diagnostics, and health)                   directly related to items controlled in
                                                  specially designed for gas turbine                      ECCNs 9A619, 9B619, 9C619, and                        Prem Aburvasamy, Senior Agency
                                                  engines and components controlled in                    9D619 and defense services using the                  Official for Privacy, National Labor
                                                  this category;                                          classified technical data. (See § 125.4 of            Relations Board, 1015 Half Street SE.,
                                                     * (6) Any part, component, accessory,                this subchapter for exemptions.) (MT for              Third Floor, Washington, DC 20570–
                                                  attachment, equipment, or system that:                  technical data and defense services                   0001, (855)-209–9394, pac@nlrb.gov.
                                                     (i) Is classified;                                   related to articles designated as such.)              SUPPLEMENTARY INFORMATION: Elsewhere
                                                     (ii) Contains classified software                       (h)–(w) [Reserved]                                 in today’s issue of the Federal Register,
                                                  directly related to defense articles in                    (x) Commodities, software, and                     the Agency is amending one of its
                                                  this subchapter or 600 series items                     technology subject to the EAR (see                    systems of records, NLRB–17, Personnel
                                                  subject to the EAR; or                                  § 120.42 of this subchapter) used in or               Security Records, pursuant to the
                                                     (iii) Is being developed using                       with defense articles controlled in this              Privacy Act of 1974.
                                                  classified information.                                 category.                                                Pursuant to subsections (k)(1), (2), (3),
                                                    Note to paragraph (f)(6): ‘‘Classified’’                                                                    (5), (6), and (7) of the Privacy Act, and
                                                                                                            Note to paragraph (x): Use of this
                                                  means classified pursuant to Executive Order            paragraph is limited to license applications          for the reasons set forth below, the
                                                  13526, or predecessor order, and a security             for defense articles controlled in this category      Board includes within Section 102.119,
                                                  classification guide developed pursuant                 where the purchase documentation includes             additional paragraphs (o) and (p),
                                                  thereto or equivalent, or to the corresponding          commodities, software, or technology subject          exempting portions of the amended
                                                  classification rules of another government or           to the EAR (see § 123.1(b) of this subchapter).       system of records (NLRB–17) from
                                                  international organization;                                                                                   subsections (c)(3), (d), (e)(1), (e)(4)(G),
                                                                                                            Dated: November 14, 2016.
                                                     (7) Investment casting cores, core                                                                         (e)(4)(H), (e)(4)(I), and (f) of the Privacy
                                                                                                          Thomas M. Countryman,                                 Act.
                                                  dies, or wax pattern dies for parts or
                                                  components enumerated in paragraphs                     Acting Under Secretary, Arms Control and                 Subsection (k)(1) of the Privacy Act
                                                                                                          International Security, Department of State.          authorizes the head of an agency to
                                                  (f)(1), (f)(2), or (f)(3) of this category;
                                                     (8) Pressure gain combustors specially               [FR Doc. 2016–27775 Filed 11–18–16; 8:45 am]          exempt a system of records from
                                                  designed for engines controlled in this                 BILLING CODE 4710–25–P                                subsections (c)(3), (d), (e)(1), (e)(4)(G),
                                                  category, and specially designed parts                                                                        (e)(4)(H), (e)(4)(I), and (f) of the Privacy
                                                  and components therefor;                                                                                      Act (5 U.S.C. 552a(c)(3), (d), (e)(1),
                                                     (9) Three-stream fan systems,                        NATIONAL LABOR RELATIONS                              (e)(4)(G), (e)(4)(H), (e)(4)(I), (f))
                                                  specially designed for gas turbine                      BOARD                                                 (hereinafter, ‘‘the applicable
                                                  engines controlled in this Category, that                                                                     subsections’’) if records are properly
                                                  allow the movement of airflow between                   29 CFR Part 102                                       classified pursuant to an Executive
                                                  the streams to control fan pressure ratio                                                                     Order, within the meaning of section
                                                                                                          Rule Exempting an Amended System
                                                  or bypass ratio (by means other than use                                                                      552(b)(1).
                                                                                                          of Records From Certain Provisions of                    Subsection (k)(3) of the Privacy Act
                                                  of fan corrected speed or the primary
                                                                                                          the Privacy Act                                       authorizes the head of an agency to
                                                  nozzle area to change the fan pressure
                                                  ratio or bypass ratio), and specially                   AGENCY:    National Labor Relations                   exempt a system of records from the
                                                  designed parts, components,                             Board.                                                applicable subsections where the
                                                  accessories, and attachments therefor;                  ACTION:   Direct final rule.                          information is maintained in connection
                                                     (10) High pressure compressors,                                                                            with providing protective services to the
                                                  specially designed for gas turbine                      SUMMARY:     The National Labor Relations             President of the United States or other
                                                  engines controlled in this Category, with               Board (NLRB) exempts an amended                       individuals pursuant to section 3056 of
                                                  core-driven bypass streams that have a                  system of records, NLRB–17, Personnel                 title 18 of the U.S. Code.
                                                  pressure ratio greater than one,                        Security Records, from certain                           Subsections (k)(2), (5), and (7) of the
                                                  occurring across any section of the                     provisions of the Privacy Act of 1974, 5              Privacy Act, in combination, authorize
                                                  bypass duct, and specially designed                     U.S.C. 552a, pursuant to sections (k)(1),             the head of an agency to exempt a
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                                                  parts, components, accessories, and                     (2), (3), (5), (6), and (7) of that Act.              system of records from the applicable
                                                  attachments therefor;                                   DATES: This rule is effective January 20,             subsections if records are created or
                                                     (11) Intermediate compressors of a                   2017 without further action, unless                   maintained for the purpose of
                                                  three-spool compression system,                         adverse comment is received by                        determining suitability, eligibility,
                                                  specially designed for gas turbine                      December 21, 2016. If adverse comment                 qualifications, or potential for
                                                  engines controlled in this Category, with               is received, the NLRB will publish a                  promotion for Federal civilian
                                                  an intermediate spool-driven bypass                     timely withdrawal of the rule in the                  employment, military service, Federal
                                                  stream that has a pressure ratio greater                Federal Register.                                     contracts, or access to classified


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Document Created: 2018-02-14 08:34:14
Document Modified: 2018-02-14 08:34:14
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective on December 31, 2016.
ContactMr. C. Edward Peartree, Director, Office of Defense Trade Controls Policy, Department of State, telephone (202) 663-2792; email [email protected] ATTN: ITAR Amendment--USML Categories VIII and XIX.
FR Citation81 FR 83126 
RIN Number1400-AD89
CFR AssociatedArms and Munitions and Exports

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