81 FR 94971 - Commerce Control List: Updates Based on the 2015 and 2016 Nuclear Suppliers Group (NSG) Plenary Meetings; Conforming Changes and Corrections to Certain Nuclear Nonproliferation (NP) Controls

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 248 (December 27, 2016)

The Bureau of Industry and Security (BIS) publishes this final rule to amend the Export Administration Regulations (EAR) to reflect the understandings reached at the June 2015 Nuclear Suppliers Group (NSG) Plenary meeting held in Bariloche, Argentina, and certain understandings reached at the 2016 NSG Plenary meeting held in Seoul, Republic of Korea. The amendments to the EAR based on the 2015 meeting address the nuclear nonproliferation (NP) controls that apply to certain centrifugal multiplane balancing machines described on the Commerce Control List (CCL). The amendments to the EAR based on the 2016 meeting address the NP controls that apply to certain linear displacement measuring systems identified on the CCL. This rule also makes additional changes to the description of these systems on the CCL to fully conform to their description on the NSG Annex. In addition, this rule corrects an error in the technical parameters of the CCL entry that describes certain radiation-hardened TV cameras (including lenses therefor) that are subject to NP controls.

[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Rules and Regulations]
[Pages 94971-94974]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31120]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 161102999-6999-01]
RIN 0694-AH20


Commerce Control List: Updates Based on the 2015 and 2016 Nuclear 
Suppliers Group (NSG) Plenary Meetings; Conforming Changes and 
Corrections to Certain Nuclear Nonproliferation (NP) Controls

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) publishes this final 
rule to amend the Export Administration Regulations (EAR) to reflect 
the understandings reached at the June 2015 Nuclear Suppliers Group 
(NSG) Plenary meeting held in Bariloche, Argentina, and certain 
understandings reached at the 2016 NSG Plenary meeting held in Seoul, 
Republic of Korea. The amendments to the EAR based on the 2015 meeting 
address the nuclear nonproliferation (NP) controls that apply to 
certain centrifugal multiplane balancing machines described on the 
Commerce Control List (CCL). The amendments to the EAR based on the 
2016 meeting address the NP controls that apply to certain linear 
displacement measuring systems identified on the CCL. This rule also 
makes additional changes to the description of these systems on the CCL 
to fully conform to their description on the NSG Annex. In addition, 
this rule corrects an error in the technical parameters of the CCL 
entry that describes certain radiation-hardened TV cameras (including 
lenses therefor) that are subject to NP controls.

DATES: This rule is effective December 27, 2016.

FOR FURTHER INFORMATION CONTACT: Steven Clagett, Director, Nuclear and 
Missile Technology Controls Division, Office of Nonproliferation and 
Treaty Compliance, Bureau of Industry and Security, Telephone: (202) 
482-1641.

SUPPLEMENTARY INFORMATION: The Bureau of Industry and Security (BIS) is 
amending the Export Administration Regulations (EAR) to revise the 
nuclear nonproliferation (NP) controls that apply to certain items 
identified on the Commerce Control List (CCL), consistent with U.S. 
commitments as a participating country in the Nuclear Suppliers Group 
(NSG). The NSG is a multilateral export control forum that consists of 
48 participating countries. The NSG maintains a list of dual-use items 
that could be used for nuclear proliferation activities. The list is 
maintained in the NSG Annex to the ``Guidelines for the Transfer of 
Nuclear Related Dual Use Equipment, Materials, Software and Related 
Technology'' (the NSG Annex). NSG participating countries share a 
commitment to prevent nuclear proliferation and the development of 
nuclear related weapons of mass destruction. In furtherance of that 
commitment, they have undertaken to impose export controls on listed 
items. The NSG Guidelines and the Annex thereto are designed to ensure 
that nuclear trade for peaceful purposes does not contribute to the 
proliferation of nuclear weapons or related proliferation activities.
    This final rule amends the CCL by revising Export Control 
Classification Number (ECCN) 2B206: (1) To reflect the changes 
affecting certain linear displacement measuring systems listed in the 
NSG Annex, based on the understandings reached at the NSG Plenary 
meeting held in Seoul, Republic of Korea, on June 23 and 24, 2016; and 
(2) to further revise the description of these systems on the CCL to 
fully conform to their description on the NSG Annex. This rule also 
revises ECCN 2B229 to reflect the changes affecting certain centrifugal 
multiplane balancing machines listed in the NSG Annex, based on the 
understandings reached at the NSG Plenary meeting held in Bariloche, 
Argentina, on June 3-5, 2015. In addition, this rule corrects an error 
in the technical parameters of ECCN 6A203.d, which describes certain 
radiation-hardened TV cameras identified on the NSG Annex.

ECCN 2B206--Amended To Conform the NP Controls on Linear Displacement 
Measuring Systems With the NSG Annex (as Updated To Reflect the 2016 
NSG Plenary Changes)

    This rule amends ECCN 2B206 to more accurately and completely 
reflect the description of certain dimensional inspection machines 
listed in the NSG Annex. These changes are related to BIS's September 
20, 2016, final rule (81 FR 64656) that included certain amendments to 
ECCN 2B006 to reflect the December 2015 updates to the List of Dual-Use 
Goods and Technologies maintained by participating governments in the 
Wassenaar Arrangement (WA). The amendments to ECCN 2B006 also affected 
the scope of the NP controls in that ECCN. Specifically, the September 
20, 2016, final rule revised the controls that applied to certain 
measuring systems by changing the technical parameters in a manner that 
removed certain linear displacement measuring systems identified on the 
NSG Annex from control under ECCN 2B006.
    As a result of the aforementioned change in the scope of the NP 
controls in ECCN 2B006, this rule amends ECCN 2B206 by adding a new 
paragraph .c, consistent with the description of the measuring systems 
in NSG Annex 1.B.3.b.3. New 2B206.c controls linear displacement 
measuring systems that contain a ``laser'' and that maintain, for at 
least 12 hours over a temperature range of  1 K around a 
standard temperature and a standard pressure, both: (1) A 
``resolution'' over their full scale of 0.1[micro]m or better; and (2) 
a ``measurement uncertainty'' equal to or better (less) than (0.2 + L/
2000) [micro]m (L is the measured length in millimeters). This rule 
also adds a Control Note and a Technical Note for new 2B206.c. The 
Control Note to new paragraph .c indicates that 2B206.c does not 
control measuring interferometer systems, without closed or open loop 
feedback, that contain a ``laser'' to measure slide movement errors of 
machine tools, dimensional inspection machines, or similar equipment. 
The Technical Note to new paragraph .c states that ``linear 
displacement,'' for purposes of 2B206.c, means the change of distance 
between the measuring probe and the measured object.

[[Page 94972]]

    The text of new paragraph .c to ECCN 2B206 also reflects the 
updates to the NSG Annex based on the understandings reached at the 
2016 NSG Plenary meeting held in Seoul, Republic of Korea. 
Specifically, paragraph .c.1 reads ``Containing a laser,'' which 
replaces the phrase ``Contain a laser'' that was previously used in 
1.B.3.b.3.a on the NSG Annex. In addition, paragraph .c.2 contains the 
phrase ``Capable of maintaining,'' which replaces the word ``Maintain'' 
that was previously used in 1.B.3.b.3.b on the NSG Annex. Amendments to 
other ECCNs on the CCL, based on the 2016 NSG Plenary understandings, 
will be published by BIS in a separate rule.
    This rule also moves the ``Control Notes to ECCN 2B206'' and the 
``Technical Note to ECCN 2B206,'' which were previously located at the 
end of this ECCN, to the beginning of the ``Items'' paragraph for ECCN 
2B206 (i.e., immediately before 2B206.a), because these notes apply to 
the entire ECCN, unlike the aforementioned notes for new 2B206.c. In 
addition, the ``ECCN Controls'' paragraphs, which were previously 
included under the ``List of Items Controlled'' for this ECCN, have 
been removed, because they duplicated the text of the ``Control Notes 
to ECCN 2B206'' and, as such, were redundant and potentially confusing.
    In addition, this rule corrects two typographical errors in the 
``Items'' paragraph of ECCN 2B206. First, the phrase ``1.7 + 1/800 
[micro]m threshold'' in the Technical Note to 2B206.a.2 is revised to 
read ``1.7 + L/800 [micro]m threshold'' to conform with the threshold 
indicated in 2B206.a.2. Second, the word ``simultaneously'' in the 
introductory text of 2B206.b is replaced with the word 
``simultaneous''.

ECCN 2B229--Amended To Reflect 2015 NSG Plenary Changes

    This final rule amends ECCN 2B229 (Centrifugal multiplane balancing 
machines) by revising paragraph .b.3 to update certain scientific 
terminology and clarify the technical parameters, therein, to read as 
follows: ``A minimum achievable residual specific unbalance equal to or 
less than 10 g-mm/kg per plane.'' This change reflects the 2015 NSG 
Plenary changes to the description of centrifugal balancing machines in 
NSG Annex 3.B.3.b and does not affect the scope of the NP controls on 
these machines. Instead, this rule revises the previous text in ECCN 
2B229.b.3 (i.e., ``Capable of balancing to a residual imbalance equal 
to or less than 0.01 kg x mm/kg per plane'') only to update and clarify 
the controls described therein, without changing their scope.

ECCN 6A203--Amended To Correct Controls on Radiation-Hardened TV 
cameras

    This rule amends ECCN 6A203 to correct an error in the technical 
parameters for radiation-hardened TV cameras described in 6A203.d. 
Specifically, this rule revises the phrase ``total radiation dose 
greater than 50 x 10\4\ Gy (silicon)'' to read ``total radiation dose 
greater than 5 x 10\4\ Gy (silicon),'' consistent with the description 
of these cameras in NSG Annex 1.A.2. Previously, as amended by BIS's 
final rule published on September 5, 2014 (79 FR 52958), this technical 
parameter overstated the total radiation dose by a factor of ten (i.e., 
incorrectly indicating a multiple of ``50,'' instead of ``5'').

License Requirements

    All of the items affected by the amendments to ECCN 2B229, 2B206 or 
6A203, as described above, require a license for NP reasons and AT 
reasons to the destinations indicated under NP Column 1 or AT Column 1, 
respectively, on the Commerce Country Chart (see Supplement No. 1 to 
part 738 of the EAR). In addition, these items may require a license 
for reasons described elsewhere in the EAR (e.g., the end-user/end-use 
controls described in part 744 of the EAR or the embargoes and other 
special controls described in part 746 of the EAR).

Effect of This Rule on the Scope of Certain EAR Controls

    The changes made by this rule only marginally affect the scope of 
the EAR controls on the affected items in ECCN 2B206, 2B229, or 6A203. 
Specifically, the amendments in this rule, which add a new paragraph .c 
to ECCN 2B206 and revise ECCN 2B229.b.3 and ECCN 6A203.d, are not the 
result of any change in the scope of the controls for these items on 
the NSG Annex. Therefore, the purpose of this final rule is not to 
increase the scope of the NP controls in these ECCNs beyond what should 
have been the case, previously, but merely to accurately reflect the 
controls on the affected items, consistent with the descriptions in NSG 
Annex 1.B.3.b.3, 3.B.b.3, and 1.A.2, respectively.
    The addition of a new paragraph .c to ECCN 2B206 to control linear 
displacement measuring systems, consistent with the description of 
these systems in NSG Annex 1.B.3.b.3, effectively reinstates the NP 
controls and anti-terrorism (AT) controls, but not the national 
security (NS) controls, that applied to such systems under ECCN 2B006, 
prior to the publication of BIS's September 20, 2016, final rule (81 FR 
64656) that amended ECCN 2B006 to reflect the December 2015 updates to 
the Wassenaar Arrangement (WA) List of Dual-Use Goods and Technologies. 
The September 20, 2016, amendments to ECCN 2B006 removed certain linear 
displacement measuring systems identified on the NSG Annex from control 
under ECCN 2B006. This final rule amends ECCN 2B206 to reinstate the NP 
and AT controls that applied to the affected linear displacement 
measuring systems prior to the September 20, 2016, final rule. The 2016 
NSG Plenary updates reflected in new paragraph 2B206.c.1, and the 
corrections in the Technical Note to 2B206.a.2 and the introductory 
text of 2B206.b, do not affect the scope of the controls in ECCN 2B206. 
Therefore, BIS does not anticipate a significant change in the number 
of license applications that will have to be submitted, as a result of 
the amendments made to ECCN 2B206 by this rule.
    The amendments to ECCN 2B229 do not affect the scope of the NP 
controls that apply to centrifugal multiplane balancing machines. These 
amendments revise 2B229.b.3, consistent with NSG Annex 3.B.3.b, to 
update certain scientific terminology and clarify the technical 
parameters, therein, and are not intended to affect the scope of the 
controls in this ECCN. Therefore, BIS does not anticipate a significant 
change in the number of license applications that will have to be 
submitted, as a result of the amendments made to ECCN 2B229 by this 
rule.
    The amendments to ECCN 6A203 correct an error in the technical 
parameters for radiation-hardened TV cameras described in 6A203.d, 
which previously misstated the technical parameters for these cameras 
by indicating a multiple of ``50,'' instead of ``5'' (as indicated in 
NSG Annex 1.A.2), for the ``total radiation dose.'' Because only a 
small number of license applications are submitted to BIS for these 
cameras, BIS does not anticipate a significant change in the number of 
license applications that will have to be submitted, as a result of the 
amendments made to ECCN 6A203 by this rule.

Export Administration Act

    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013), and as extended by the Notice of 
August 4, 2016 (81 FR 52587 (Aug. 8, 2016)),

[[Page 94973]]

has continued the Export Administration Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
BIS continues to carry out the provisions of the Export Administration 
Act, as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222 as amended by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive 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, consistent with 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
contains a collection of information subject to the requirements of the 
PRA. This collection has been approved by OMB under Control Number 
0694-0088 (Multi-Purpose Application), which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. Send 
comments regarding this burden estimate or any other aspect of this 
collection of information, including suggestions for reducing the 
burden, to Jasmeet Seehra, Office of Management and Budget, by email to 
[email protected], or by fax to (202) 395-7285; and to the 
Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, 14th Street & Pennsylvania Avenue NW., Room 2705, 
Washington, DC 20230 or by email to [email protected].
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (See 5 U.S.C. 553(a)(1)). Immediate 
implementation of these amendments is non-discretionary and fulfills 
the United States' international commitment to administer controls on 
specified items consistent with the Guidelines, and the Annex thereto, 
maintained by the Nuclear Suppliers Group (NSG). The NSG contributes to 
international security and regional stability through the harmonization 
of export controls and seeks to ensure that exports do not contribute 
to the development of nuclear weapons. The NSG consists of 48 member 
countries that act on a consensus basis and the amendments set forth in 
this rule revise the scope of nuclear nonproliferation controls in the 
EAR to more fully reflect the controls implemented by other NSG 
participating countries, consistent with the NSG Guidelines and the 
Annex thereto. Because the United States is a significant exporter of 
the items addressed in this rule, immediate implementation of these 
regulatory provisions is necessary in order for the NSG to continue to 
meet its objectives. Any delay in implementation will create a 
disruption in the movement of affected items globally because of 
disharmony between the export controls maintained by the United States 
and the export control measures implemented by other NSG members, 
resulting in tension between member countries. Export controls work 
best when all countries implement the same export controls in a timely 
and coordinated manner.
    Further, no other law requires that a notice of proposed rulemaking 
and an opportunity for public comment be given for this final rule. 
Because a notice of proposed rulemaking and an opportunity for public 
comment are not required to be given for this rule under the 
Administrative Procedure Act or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Therefore, this regulation is issued in final form.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, part 774 of the Export 
Administration Regulations (15 CFR parts 730-774) is amended as 
follows:

PART 774--[AMENDED]

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

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 43 
U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 4, 2016, 81 FR 52587 (August 8, 2016).

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

0
2. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 2--Materials Processing, ECCN 2B206 is amended, under the 
``List of Items Controlled'' section, by removing the ``ECCN Controls'' 
paragraph and by revising the ``Items'' paragraph to read as follows:

2B206 Dimensional inspection machines, instruments or systems, other 
than those described in 2B006, as follows (see List of Items 
Controlled).
* * * * *

List of Items Controlled

Related Controls: * * *
Related Definitions: * * *
Items:

    Control Notes to ECCN 2B206: (1) Machine tools that can be used 
as measuring machines are controlled by ECCN 2B206 if they meet or 
exceed the control parameters specified in this entry for the 
measuring machine function. (2) The machines described in ECCN 2B206 
are controlled by this entry if they exceed the specified control 
threshold anywhere in their operating range.

    Technical Note to ECCN 2B206: All parameters of measurement 
values in this entry represent plus/minus, i.e., not total band.

    a. Computer controlled or numerically controlled coordinate 
measuring machines (CMM) with either of the following 
characteristics:
    a.1. Having only two axes with a maximum permissible error of 
length measurement along any axis (one dimension), identified as any 
combination of E0x MPE, E0y MPE or 
E0z MPE, equal to or less (better) than (1.25 + L/1000) 
[micro]m (where L is the measured length in mm) at any point within 
the operating range of the machine (i.e., within the length of the 
axis), according to ISO 10360-2 (2009); or
    a.2. Having three or more axes with a three dimensional 
(volumetric) maximum permissible error of length measurement, 
identified as E0, MPE, equal to or less 
(better) than (1.7 + L/800) [micro]m (where L is the measured length 
in mm) at any point within the operating range of the machine (i.e.,

[[Page 94974]]

within the length of the axis), according to ISO 10360-2 (2009).

    Technical Note to 2B206.a.2: The E0, MPE 
of the most accurate configuration of the CMM specified according to 
ISO 10360-2 (2009) by the manufacturer (e.g., best of the following: 
Probe, stylus length, motion parameters, environment) and with all 
compensations available shall be compared to the 1.7 + L/800 
[micro]m threshold.

    b. Systems for simultaneous linear-angular inspection of 
hemishells, having both of the following characteristics:
    b.1. ``Measurement uncertainty'' along any linear axis equal to 
or less (better) than 3.5 [micro]m per 5 mm; and
    b.2. ``Angular position deviation'' equal to or less than 
0.02[deg].
    c. Linear displacement measuring systems having both of the 
following characteristics:
    c.1. Containing a ``laser;'' and
    c.2. Capable of maintaining, for at least 12 hours over a 
temperature range of  1 K around a standard temperature 
and a standard pressure, both:
    c.2.a. A ``resolution'' over their full scale of 0.1[micro]m or 
better; and
    c.2.b. A ``measurement uncertainty'' equal to or better (less) 
than (0.2 + L/2000) [micro]m (L is the measured length in 
millimeters).

    Control Note to 2B206.c: 2B206.c does not control measuring 
interferometer systems, without closed or open loop feedback, 
containing a ``laser'' to measure slide movement errors of machine 
tools, dimensional inspection machines, or similar equipment.

    Technical Note to 2B206.c: In 2B206.c, ``linear displacement'' 
means the change of distance between the measuring probe and the 
measured object.

0
3. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 2--Materials Processing, ECCN 2B229 is amended in the 
``Items'' paragraph, under the ``List of Items Controlled'' section, by 
revising paragraph .b.3 to read as follows:

2B229 Centrifugal multiplane balancing machines, fixed or portable, 
horizontal or vertical, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.3. A minimum achievable residual specific unbalance equal to 
or less than 10 g-mm/kg per plane; and
* * * * *

0
4. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 6--Sensors and Lasers, ECCN 6A203 is amended in the ``Items'' 
paragraph, under the ``List of Items Controlled'' section, by revising 
paragraph .d to read as follows:

6A203 High-speed cameras, imaging devices and ``components'' 
therefor, other than those controlled by 6A003 (see List of Items 
Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    d. Radiation-hardened TV cameras, or lenses therefor, 
``specially designed'' or rated as radiation hardened to withstand a 
total radiation dose greater than 5 x 10\4\ Gy (silicon) without 
operational degradation.
* * * * *

    Dated: December 20, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-31120 Filed 12-23-16; 8:45 am]
 BILLING CODE 3510-33-P