82 FR 2875 - Revisions to the Export Administration Regulations (EAR): Control of Spacecraft Systems and Related Items the President Determines No Longer Warrant Control Under the United States Munitions List (USML)
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 82, Issue 6 (January 10, 2017)
Bureau of Industry and Security
Federal Register Volume 82, Issue 6 (January 10, 2017)
| Page Range | 2875-2883 | |
| FR Document | 2016-31755 |
[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)] [Rules and Regulations] [Pages 2875-2883] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31755] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Parts 740, 742, 750, and 774 [Docket No. 150325297-6180-02] RIN 0694-AG59 Revisions to the Export Administration Regulations (EAR): Control of Spacecraft Systems and Related Items the President Determines No Longer Warrant Control Under the United States Munitions List (USML) AGENCY: Bureau of Industry and Security, Department of Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule addresses issues raised in, and public comments on, the interim final rule that was published on May 13, 2014, as well as additional clarifications and corrections. The May 13 rule added controls to the Export Administration Regulations (EAR) for spacecraft and related items that the President has determined no longer warrant control under United States Munitions List (USML) Category XV--spacecraft and related items. This is the third final rule BIS has published related to the May 13 rule and completes the regulatory action for the interim final rule. These changes were also informed by comments received in response to the May 13 rule that included a request for comments, as well as interagency discussions on how best to address the comments. The changes made in this final rule are grouped into four types of changes: Changes to address the movement of additional spacecraft and related items from the USML to the Commerce Control List (CCL), as a result of changes in aperture size for spacecraft that warrant ITAR control, in response to public comments and further U.S. Government review; changes to address the movement of the James Webb Space Telescope (JWST) from the USML to the CCL; other corrections and clarifications to the spacecraft interim final rule; and addition of .y items to Export Control Classification Number 9A515. This final rule is being published in conjunction with the publication of a Department of State, Directorate of Defense Trade Controls (DDTC) final rule, which makes changes, including corrections and clarifications, to the provisions adopted in the State Department's own May 13, 2014 rule. The State May 13 rule revised USML Category XV (22 CFR 121.1) to control those articles the President has determined warrant control on the USML. Both May 13 rules and the subsequent related rules are part of the President's Export Control Reform Initiative. This rule is also part of Commerce's retrospective regulatory review plan under Executive Order (EO) 13563 (see the SUPPLEMENTARY INFORMATION section of this rule for information on the availability of the plan). DATES: This rule is effective on January 15, 2017. FOR FURTHER INFORMATION CONTACT: For questions about the ECCNs included in this rule, contact Dennis Krepp, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, U.S. Department of Commerce, Telephone: 202-482-1309, email: [email protected]. For general questions about the regulatory changes pertaining to satellites, spacecraft, and related items, contact the Regulatory Policy Division, Office of Exporter Services, Bureau of Industry and Security, at 202-482-2440 or email: [email protected]. SUPPLEMENTARY INFORMATION: Background This final rule addresses issues raised in, and public comments on, the interim final rule, Revisions to the Export Administration Regulations (EAR): Control of Spacecraft Systems and Related Items the President Determines No Longer Warrant Control Under the United States Munitions List (USML), that was published on May 13, 2014 (79 FR 27417) (May 13 rule), and makes corrections and clarifications. The May 13 rule added controls to the Export Administration Regulations (EAR) for spacecraft and related items that the President has determined no longer warrant control under United States Munitions List (USML) Category XV--spacecraft and related items. The vast majority of the changes included in the May 13 rule have been implemented as published in the interim final rule and are not republished in this final rule. A full description of those changes can be found in the Background section and the regulatory text of the May 13 rule. BIS also published corrections and clarifications to the May 13 rule in a final rule published on November 12, 2014 (79 FR 67055) and in a final rule published on July 13, 2015 (80 FR 39950). This final rule is being published in conjunction with the publication of a Department of State, Directorate of Defense Trade Controls (DDTC) final rule, which makes changes, including corrections and clarifications, to the provisions adopted in the May 13 State [[Page 2876]] rule (79 FR 27180). The State May 13 rule revised USML Category XV (22 CFR 121.1) to control those articles the President has determined warrant control on the USML. Both May 13 rules and the subsequent related rules are part of the President's Export Control Reform Initiative. The changes included in this Commerce final rule complete the regulatory action begun by the May 13 rule and are also informed by comments received in response to that rule. The changes made in this Commerce final rule are grouped into four types of changes: (1) Changes to address the movement of additional spacecraft and related items from the USML to the CCL, as a result of changes in aperture size for spacecraft that warrant ITAR control, in response to public comments and further U.S. Government review; (2) changes to address the movement of the James Webb Space Telescope (JWST) from the USML to the CCL; (3) other corrections and clarifications to the spacecraft interim final rule; and (4) addition of .y items to Export Control Classification Number (ECCN) 9A515. Note that certain ECCNs may be referenced in more than one of the (1) through (4) sections, but for ease of reference the description of those changes to those ECCNs, such as ECCN 9E515, are grouped with the related changes under sections (1) through (4), as applicable. (1) Changes To Address the Movement of Additional Spacecraft and Related Items From the USML to the CCL, as a Result of Changes in Aperture Size for Spacecraft That Warrant ITAR Control, in Response to Public Comments and Further U.S. Government Review This final rule makes several changes to the EAR to address the movement of additional spacecraft and related items from the USML to the CCL, as a result of the Department of State's responding to comments on its interim final rule, which specifically asked for additional public comments on this issue. The Department of State in its May 13 interim final rule noted: Commenting parties recommended the aperture threshold for civil and commercial remote sensing satellites in paragraph (a)(7)(i) be increased from 0.35 meters to a threshold more appropriate for current world capabilities and market conditions. The Department [of State] did not accept this recommendation at this time. However, it, along with other agencies, understands that the technology and civil and commercial applications in this area are evolving. Thus, the Department has committed to reviewing during the six months after the publication of this rule whether further amendments to the USML controls on civil and commercial remote sensing satellites are warranted, and seeks additional public comment on this matter. For a discussion of the changes made to the ITAR in response to the related public comments, see the corresponding Department of State rule published today. The changes described below are the EAR changes needed to address the movement of these additional spacecraft (under ECCNs 9A515.a.1 to .a.4 and 9A004.u) and related items (under 9A515.g) from the USML to the CCL. Adopting a more permissive aperture size (meaning more spacecraft items would no longer warrant ITAR control) was strongly advocated by commenters in response to the Commerce interim final rule. The public believed additional changes were needed to appropriately control spacecraft and related items that warranted ITAR control, with respect to aperture size, while moving those that did not warrant ITAR control to the CCL, consistent with the stated objectives in the May 13 final rules. State and the other agencies reviewing the comments agreed that some additional spacecraft and related items did not warrant ITAR control. This Commerce rule makes conforming changes to the EAR to ensure that appropriate controls are in place for such additional spacecraft and related items that did not warrant ITAR control, based on the review of the public comments and additional U.S. Government review. BIS anticipates an increase of approximately 10 to 20 license applications per year as a result of these changes to the EAR. Because of the more sensitive nature of these additional spacecraft and related items that are being moved to the CCL, additional changes are needed to the EAR to effectively control these items. In certain cases, this means imposing more restrictive requirements compared to other 9x515 items. These additional requirements are described below, including a description of the parameters for the items moved to the CCL. In Sec. 740.20, paragraph (g) (License Exception STA eligibility requests for 9x515 and ``600 series'' end items), this final rule revises paragraph (g)(1) as a conforming change to the changes made to ECCN 9A515.a, described below. To maintain the same scope of paragraph (g)(1), this final rule removes the text that referred to ECCN 9A515.a and adds in its place text referencing ``spacecraft'' in 9A515.a.1, .a.2, .a.3, or .a.4, or items in 9A515.g. The spacecraft in ECCN 9A515.a.5 are eligible for License Exception STA without a Sec. 740.20(g) request. As a conforming change, this final rule adds ECCN 9E515.b, .d, .e, or .f as eligible for Sec. 740.20(g) License Exception STA eligibility requests. Because the scope of revised paragraph (g) includes items other than end items, this final rule also revises the heading of paragraph (g) to remove the term ``end items'' and add in its place the term ``items.'' However, the items eligible to be submitted under the Sec. 740.20(g) process are still limited to those specific ECCNs and ``items'' paragraphs identified in paragraph (g). The spacecraft transferred to the CCL in this final rule are subject to special regional stability license requirements. Therefore, in Sec. 742.6 (Regional stability), this final rule makes revisions to five paragraphs. The final rule revises paragraph (a)(1), adds a new paragraph (a)(8), revises paragraph (b)(1)(i), and adds paragraphs (b)(5) and (b)(6). These changes are described below. In Sec. 742.6, paragraph (a)(1) (RS Column 1 license requirements in general), this final rule adds a reference to new paragraph (a)(8). New paragraph (a)(8) (Special RS Column 1 license requirement applicable to certain spacecraft and related items) is an RS Column 1 license requirement, which is specific to certain spacecraft and related items. This paragraph specifies that a license is required for all destinations, including Canada, for spacecraft and related items classified under ECCN 9A515.a.1, .a.2., .a.3., .a.4., .g, and ECCN 9E515.f. Although the license requirement for these specified ECCN 9x515 items is more restrictive than for those 9x515 items on the CCL prior to publication of this rule, the license review policy is the same as those for other 9x515 items. As a conforming change, this final rule revises the fourth sentence of paragraph (b)(1)(i) to add a reference to paragraph (a)(8), because that sentence references the ECCN 9x515 license requirements, which now include those special RS license requirements in paragraph (a)(8). This final rule adds two new paragraphs, paragraph (b)(5) (Spacecraft for launch) and paragraph (b)(6) (Remote sensing spacecraft) to specify the requirements that apply for license applications involving spacecraft and remote sensing spacecraft. Consistent with the requirements in paragraph (y) in Supplement No. 2 to part 748 Unique Application and Submission Requirements, this final rule adds paragraphs (b)(5)(i) and (b)(5)(ii) to specify when applications to export or reexport a ``spacecraft'' controlled under ECCN 9A515.a for launch in or by a country will or may require a technology transfer control plan (TCP) approved by the Department of Defense [[Page 2877]] (DoD), an encryption technology control plan approved by the National Security Agency (NSA), and DoD monitoring of all launch activities. Paragraph (b)(5)(i) specifies that this is a requirement for all such applications for countries that are not a member of the North Atlantic Treaty Organization (NATO) or a major non-NATO ally of the United States. This final rule adds a similar requirement under paragraph (b)(5)(ii), but with the key distinction that it may be required for countries that are a member of NATO or a major non-NATO ally of the United States. Also in Sec. 742.6, this final rule adds a new paragraph (b)(6) (Remote sensing spacecraft) to make applicants aware that any application for ``spacecraft'' described in ECCN 9A515.a.1,.a.2, a.3, or .a.4, for sensitive remote sensing components described in 9A515.g, or for ``technology'' described in ECCN 9E515.f, may require a government-to-government agreement at the discretion of the U.S. Government. A government-to-government agreement may be required for any destination at the sole discretion of the U.S. Government. In Sec. 750.4 (Procedures for processing license applications), as conforming changes to the changes described above to Sec. 742.6, this final rule makes the following two changes: adds a new paragraph (b)(8), and adds a new paragraph (d)(2)(iv). These changes are described in the next two paragraphs. In Sec. 750.4, consistent with the requirements in paragraph (y) in Supplement No. 2 to part 748 Unique Application and Submission Requirements, this final rule adds a new paragraph (b)(8) (Satellites for launch) to include a requirement for license applications involving a satellite for launch. Applicants must obtain approval by the DoD of a technology transfer control plan and the approval of the NSA of an encryption technology control plan. In addition, the applicant will also be required to make arrangements with the DoD for monitoring of all launch activities. These existing DoD and NSA requirements in regards to satellites for launch are in addition to the EAR licensing requirements, but any license authorized under the EAR for satellites for launch must also be done in accordance with those DoD and NSA requirements to be authorized under an EAR license. Therefore, this final rule adds this requirement to Sec. 750.4(b)(8), which will eliminate the need to add this requirement as a license condition for any license for satellites for launch. These DoD and NSA TCP approval requirements existed under the ITAR and are added to the EAR to preserve the status quo. Therefore, although this paragraph adds three new requirements to the EAR for license applications for spacecraft for launch, the requirements are the same as when these spacecraft were formerly under the ITAR, so there will be no increased burden on exporters, reexporters or transferors. In Sec. 750.4, this final rule adds a new paragraph (d)(2)(iv) (Remote Sensing Interagency Working Group (RSIWG)) to make applicants aware that the RSIWG, chaired by the State Department, will review license applications involving remote sensing spacecraft. These will be any items described in ECCN 9A515.a.1, .a.2, .a.3, or .a.4, sensitive remote sensing components described in 9A515.g, or ``technology'' described in 9E515.f. ECCN 9A515. This final rule adds a new License Requirement Note, revises the Special Conditions for STA section, revises ``items'' paragraph (a), and adds paragraph (g) in the List of ``items'' controlled section of ECCN 9E515. These changes are described in the next five paragraphs. Addition of License Requirement Note to 9A515. As a conforming change to the addition of Sec. 742.6(a)(8), described above, this final rule adds a License Requirement Note to the end of the License Requirements section of ECCN 9A515 to specify that the Commerce Country Chart is not used for determining license requirements for commodities classified as 9A515.a.1, .a.2., .a.3., .a.4, and .g. The new License Requirement also includes a cross reference to Sec. 742.6(a)(8) and alerts exporters and reexporters that these commodities are subject to a worldwide license requirement. In ECCN 9A515, Special Conditions for STA section, this final rule revises paragraph (1). This final rule adds references to the new ``items'' paragraphs of ECCN 9A515.a (9A515.a.1, .a.2, .a.3 and .a.4) and 9A515.g, which would not be eligible for License Exception STA, unless determined by BIS to be eligible for License Exception STA in accordance with Sec. 740.20(g) (License Exception STA eligibility requests for certain 9x515 and ``600 series'' end items). Because these items are commodities that are more sensitive, additional U.S. Government review of the specific commodity is warranted prior to allowing exporters, reexporters or transferors to use License Exception STA. The imposition of this requirement is consistent with the use of the paragraph (g) process for other sensitive items in the 9x515 ECCNs and the ``600 series'' that have been moved to the CCL. Also in the Special Conditions for STA section, this final rule redesignates paragraph (2) as paragraph (3) and adds a new paragraph (2). This final rule adds new paragraph (2) in the Special Conditions for STA section to exclude the use of License Exception if the ``spacecraft'' controlled in ECCN 9A515.a.1, .a.2, .a.3, or .a.4 contains a separable or removable propulsion system enumerated in USML Category IV(d)(2) or USML Category XV(e)(12) and designated MT. This exclusion is being added because the MTCR Category I components identified in this paragraph are separable or removable and therefore for consistency with the intent to exclude MT items from License Exception STA eligibility, this final rule adds this as an additional restriction on the use of License Exception STA. In ECCN 9A515.a, this final rule revises ``items'' paragraph (a) to add control parameters for the additional spacecraft being moved from the USML to the CCL. Spacecraft moved from the USML to the CCL and classified under ECCN 9A515.a prior to publication of this rule are being moved to new ``items'' paragraph (a)(5). This final rule adds ``items'' paragraphs (a)(1), (a)(2), (a)(3) and (a)(4) to ECCN 9A515 to control the additional spacecraft items being moved to the CCL. The identification of these more sensitive spacecraft items in their own ``items'' level paragraph in ECCN 9A515 (9A515.a.1, .a.2, .a.3., .a.4) will allow for the imposition of more restrictive controls that are needed, while not impacting other spacecraft and related items that do not warrant the more restrictive controls (e.g., 9A515.a.5). These more restrictively controlled items consist of the following: ``spacecraft,'' including satellites, and space vehicles, whether designated developmental, experimental, research or scientific, not enumerated in USML Category XV or described in ECCN 9A004 that have electro-optical remote sensing capabilities and having a clear aperture greater than 0.35 meters, but less than or equal to 0.50 meters (under ECCN 9A515.a.1). It includes those having remote sensing capabilities beyond NIR (under ECCN 9A515.a.2), those having radar remote sensing capabilities (e.g., AESA, SAR, or ISAR) having a center frequency equal to or greater than 1.0 GHz, but less than 10.0 GHz and having a bandwidth equal to or greater than 100 MHz, but less than 300 MHz (under 9A515.a.3). These more sensitive items being moved from the USML to the CCL also include those providing space-based logistics, assembly, or servicing of another ``spacecraft'' (under ECCN 9A515.a.4). [[Page 2878]] In ECCN 9A515.g, this final rule also adds ``items'' paragraph (g) to 9A515, as related to the changes described above to 9A515.a. Paragraph (g) is added to control remote sensing components that are ``specially designed'' for ``spacecraft'' described in ECCN 9A515.a.1 though 9A515.a.4, which were described above. Similar to the reason for identifying the items in ECCN 9A515.a.1 through .a.4., specifying that these remote sensing components are the ``items'' paragraphs (g)(1) through (g)(3) will allow the imposition of more restrictive controls on these components, without needing to impose the same level of restrictions on 9A515.x items, which is the paragraph under which these components would have been controlled if this new 9A515.g paragraph were not being added. Paragraph (g) controls remote sensing components for space-qualified optics with the largest lateral clear aperture dimension equal to or less than 0.35 meters; or with the largest clear aperture dimension greater than 0.35 meters but less than or equal to 0.50 meters (under ECCN 9A515.g.1). In addition, paragraph (g) controls optical bench assemblies ``specially designed'' for the spacecraft added to ECCN 9A515.a.1 through .a.4 (under ECCN 9A515.g.2), and primary, secondary, or hosted payloads that perform a function of spacecraft added to 9A515.a.1. through .a.4. (under 9A515.g.3). ECCN 9E515. This final rule adds a new License Requirement Note, revises the Special Conditions for STA section and ``items'' paragraph (a), and adds ``items'' paragraph (f) in the List of ``items'' controlled section of ECCN 9E515. These changes are described in the next five paragraphs: Addition of License Requirement Note to 9E515. As a conforming change to the addition of Sec. 742.6(a)(8), described above, this final rule adds a License Requirement Note to the end of the License Requirements section of ECCN 9E515 to specify that the Commerce Country Chart is not used for determining license requirements for ``technology'' classified 9E515.f. The new License Requirement also includes a cross reference to Sec. 742.6(a)(8) and alerts exporters and reexporters that this ``technology'' is subject to a worldwide license requirement. In ECCN 9E515, Special Conditions for STA section, this final rule revises paragraph (1) to add a reference to 9E515.f. This final rule specifies that such technology is not eligible for STA, unless the specific technology has been approved under the Sec. 740.20(g) process by the U.S. Government. This change is made to conform to the addition described below of ``technology'' under ECCN 9E515.f for the additional spacecraft and related components added to 9A515.a and .g described above. In addition, this final rule also specifies that the ``technology'' controlled under ECCN 9E515.b, .d and .e are not eligible for License Exception STA, unless the specific ``technology'' has been approved under the Sec. 740.20(g) process by the U.S. Government. Prior to publication of this final rule, ECCN 9E515.b, .d and .e ``technology'' was excluded from License Exception STA in all cases, which based on public comments and interagency discussions was a more restrictive policy than was needed to protect U.S. national security and foreign policy interests for this ``technology'' classified under ECCN 9E515. Therefore, this final rule makes the other ``technology'' (9E515.b, .d and .e) also eligible for the requests under Sec. 740.20(g), as described above in the changes this final rule makes to paragraph (g) of License Exception STA. In ECCN 9E515.a, this final rule revises ``items'' paragraph (a) to exclude the ``technology'' for the new commodities added to 9A515.a (.a.1 through .a.4) and .g. ``Required'' ``technology'' for these new commodities added to ECCN 9A515.a and .g will be controlled under ECCN 9E515, but in order to impose more restrictive controls on those ``technologies'' without impacting other 9E515 ``technology,'' this final rule adds this ``technology'' being moved to the CCL to a new ``items'' paragraph (f) to 9E515, as described below. In ECCN 9E515.f, this final rule adds a new ``items'' paragraph (f) in the List of Items Controlled section to control ``technology'' ``required'' for the ``development,'' ``production,'' installation, repair, overhaul, or refurbishing of commodities that this final rule adds to ECCN 9A515 under ``items'' paragraphs .a.1 through .a.4, or .g. As described above, this final rule is identifying these ``technologies'' in their own ``items'' paragraph in order to allow more restrictive controls to be placed on these items without impacting other ECCN 9E515 ``technology.'' (2) Changes To Address the Movement of the James Webb Space Telescope (JWST) From the USML to the CCL ECCN 9A004. This final rule revises ECCN 9A004 to add a specific telescope, which was ``subject to the ITAR'' prior to the effective date of this final rule. A determination was made based on the public comments received by the Department of State and the space interagency working group (a group of U.S. Government agencies involved in the export control system and that deal with space related issues) that this specific telescope was within the scope of spacecraft and related items that did not warrant being subject to the ITAR. Therefore, consistent with the stated purpose of the May 13 rule, as well as section 38(f) of the Arms Export Control Act (AECA), the Department of State has moved this telescope, the James Webb Space Telescope (JWST), which is being developed, launched, and operated under the supervision of the U.S. National Aeronautics and Space Administration (NASA), to the CCL. The ``parts,'' ``components,'' ``accessories,'' and ``attachments'' that are ``specially designed'' for use in or with the JWST are also being moved from the ITAR and will be subject to the EAR, as of the effective date of the State and Commerce final rules. To control the JWST and the ``specially designed'' ``parts,'' ``components,'' ``accessories,'' and ``attachments'' for the JWST, this final rule adds two new ``items'' paragraph to ECCN 9A004. First, this final rule adds a new ``items'' paragraph (u) to 9A004 to control the JWST (the specific telescope) that is being moved to the CCL from the USML. Second, this final rule adds a new ``items'' paragraph (v) to control the ``specially designed'' ``parts,'' ``components,'' ``accessories,'' or ``attachments'' for use in or with the JWST. The commodities this final rule adds to ECCN 9A004.v include the primary and secondary payloads of the JWST. This final rule also specifies in the control parameters in the new paragraph (v)(1) to (v)(4) that the ``parts,'' ``components,'' ``accessories,'' and ``attachments'' specified in paragraph (v) do not include items that are ``subject to the ITAR,'' microelectronic circuits, items in ECCNs 7A004 and 7A104, or in any ECCN containing ``space qualified'' as a control criterion (See ECCN 9A515.x.4). As a conforming change, this final rule revises the phrase ``ECCN 9A004.x'' in paragraph (y) to add a reference to the ``parts,'' ``components,'' ``accessories,'' and ``attachments'' in paragraph (v) that this final rule adds. This final rule revises the phrase, so it now specifies ``ECCN 9A004.v or .x,'' which is being done to account for the fact that paragraphs (v) and (x) will contain certain ``specially designed'' ``parts,'' ``components,'' ``accessories,'' and ``attachments'' for items enumerated in ECCN 9A004 and that the new items being added to paragraph (v) and (x) could be reclassified under 9A004.y, if subsequently the specific item is [[Page 2879]] identified in an interagency-cleared commodity classification (CCATS) pursuant to Sec. 748.3(e) as warranting control in 9A004.y. BIS anticipates an increase of approximately 20 license applications per year as a result of these changes to the EAR. In addition to the change to ECCN 9A004, this final rule makes changes to three 9x515 ECCNs to reflect that the JWST and the ``specially designed'' ``parts,'' ``components,'' ``accessories,'' and ``attachments'' for the JWST are being added to 9A004. This final rule makes these conforming changes to ECCNs 9A515, 9B515 and 9E515. These are not substantive changes. These changes are described in the next three paragraphs. ECCN 9A515. This final rule revises the third sentence of the Related Controls paragraph in the List of Items Controlled section of ECCN 9A515 to add a reference to the JWST. This final rule also revises the Note to ECCN 9A515.a to specify items in ECCN 9A004 are not within the scope of 9A515.a. A reference to ECCN 9A004 needs to be added because the description of this Note to ECCN 9A515.a would otherwise include the JWST. This final rule revises ``items'' paragraph (b) in ECCN 9A515, to add a reference to ECCN 9A004.u for the JWST. This conforming change is needed to specify that ground control systems and training simulators ``specially designed'' for telemetry, tracking and control of the JWST are also within the scope of ECCN 9A515.b. For similar reasons, this final rule revises ``items'' paragraph (e) to add a reference to ECCN 9A004.u. This conforming change is made to specify that the microelectronic circuits and discrete electronic components described in ECCN 9A515.e include those ``specially designed'' for the JWST. This final rule also makes some changes to the .y paragraph in ECCN 9A515, which are discussed further below. ECCN 9B515. This final rule revises ``items'' paragraph (a) in the List of Items Controlled section to add a reference to ECCN 9A004.u. This conforming change is needed to specify that the test, inspection, and production ``equipment'' ``specially designed'' for the ``production'' or ``development'' of the JWST are also classified under ECCN 9B515.a. For similar reasons, this final rule revises the Note to ECCN 9B515.a to add a reference to ECCN 9A004.u. This conforming change is intended to specify that ECCN 9B515.a includes equipment, cells, and stands ``specially designed'' for the analysis or isolation of faults in the JWST, in addition to the other commodities enumerated in the Note to ECCN 9A515.a. ECCN 9E515. This final rule also revises the third sentence in the ``Related Controls'' paragraph in the List of Items Controlled section in ECCN 9E515 to add a reference to the JWST. This sentence will alert persons classifying technology for the JWST to see ECCNs 9E001 and 9E002. (3) Other Corrections and Clarifications to Interim Spacecraft Final Rule ECCN 9A515. This final rule adds two sentences at the end of the introductory text in the ``items'' paragraph in the List of Items Controlled section of ECCN 9A515, consistent with the notes to USML Category XV. The introductory paragraph clarifies when ``spacecraft'' and other items described in ECCN 9A515 remain subject to the EAR even if exported, reexported, or transferred (in-country) with defense articles ``subject to the ITAR'' integrated into and included therein as integral parts of the item. This introductory paragraph includes some application examples and some qualifiers for when the ITAR jurisdiction would reapply to such defense articles. This final rule adds two new sentences to clarify two additional instances where the jurisdiction of the ITAR would be applicable in such scenarios. The first new sentence is being added to clarify that the removal of a defense article subject to the ITAR from the spacecraft is a retransfer under the ITAR--meaning the removal of a defense article would require an ITAR authorization. The ITAR authorization requirement would apply regardless of which CCL authorization the spacecraft is exported under the EAR. The second sentence clarifies that transfer of technical data regarding the defense article subject to the ITAR integrated into the spacecraft would require an ITAR authorization. ECCN 9B515. This final rule revises the License Requirements section of ECCN 9B515 to add a missile technology (MT) control. The MT control is being added to impose a license requirement on equipment in ECCN 9B515.a that is for the ``development'' or ``production'' of commodities in USML Category XV(e)(12) and XV(e)(19) that are MT controlled. This change is made to conform to the Missile Technology Control Regime (MTCR) Annex and the corresponding MT controls in USML Category XV (MTCR Annex, Category I: Item 2.B.2.). BIS anticipates an increase of approximately 10 license applications per year as a result of this change to the EAR, along with the conforming MT change made to ECCN 9E515 described in the next paragraph. ECCN 9E515. This final rule, as a conforming change to the change to ECCN 9B515, revises the MT Control paragraph in the License Requirements section on ECCN 9E515. This final rule revises the MT Control paragraph in ECCN 9E515 to add technology for items in 9B515.a that are controlled for MT reasons. This change is made to conform to the MTCR Annex and the corresponding MT controls in USML Category XV (MTCR Annex, Category I: Item 2.E.1.). (4) Addition of .y Items to ECCN 9A515 This final rule adds five .y paragraphs (ECCN 9A515.y.2, .y.3., .y.4, .y.5, and .y.6) as additional commodities specified under paragraph (y) in this ECCN. As noted in the introductory text of paragraph (y), the U.S. Government through the Sec. 748.3(e) process will identify the items that warrant being classified under 9x515.y, such as the commodities being specified under ECCN 9A515.y.2 to .y.6 in this final rule. Specifically, the following space grade or for spacecraft applications commodities: thermistors (ECCN 9A515.y.2); RF microwave bandpass ceramic filters (dielectric resonator bandpass filters) (9A515.y.3); space grade or for spacecraft applications hall effect sensors (9A515.y.4); subminiature (SMA and SMP) plugs and connectors, TNC plugs and cable and connector assemblies with SMA plugs and connectors (9A515.y.5); and flight cable assemblies (9A515.y.6) have been identified in interagency-cleared commodity classifications (CCATS) pursuant to Sec. 748.3(e) as warranting control in 9A515.y.2 to .y.6. The additions described above for ECCN 9A515.y.2 to y.6 are the second set of approved populations of .y controls being added to 9A515. As stated in the May 13 rule, as well as the July 13 rule (which added ECCN 9A515.y.1), BIS (along with State and Defense) will continue to populate the 9A515.y with additional entries as additional classification determinations are made in response to requests from the public under Sec. 748.3(e). As required by Executive Order (EO) 13563, BIS intends to review this rule's impact on the licensing burden on exporters. Commerce's full plan is available at: http://open.commerce.gov/news/2011/08/23/plan-retrospective-analysis-existing-rules. Data are routinely collected on an ongoing basis, including through the comments to be submitted and as a result of new information and results from AES data. These results and data have been, and [[Page 2880]] will continue to form, the basis for ongoing reviews of the rule and assessments of various aspects of the rule. As part of its plan for retrospective analysis under EO 13563, BIS intends to conduct periodic reviews of this rule and to modify, or repeal, aspects of this rule, as appropriate, and after public notice and comment. Some of the changes described above are limited to corrections or clarifications of what was included in the May 13 rule. BIS estimates that the substantive changes described above will result in an increase of 30-40 license applications per year, which is within the previous estimate made for the number of license applications that BIS anticipated receiving as a result of the movement of these spacecraft and related items to the CCL under the May 13 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 (August 8, 2016), has continued the Export Administration Regulations in effect under the International Emergency Economic Powers Act. 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, distribute impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This final rule has been designated a ``significant regulatory action,'' although not economically significant, under section 3(f) of Executive Order 12866. 2. Notwithstanding any other provision of law, no person is required to respond to, nor is 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 OMB control number. This regulation involves collections previously approved by OMB under control number 0694-0088, Simplified Network Application Processing System, which includes, among other things, license applications and carries a burden estimate of 43.8 minutes for a manual or electronic submission. Total burden hours associated with the PRA and OMB control number 0694-0088 are expected to increase slightly as a result of this rule. The expected increase in total burden hours is expected to be minimal and to not exceed the existing estimates for burden hours associated with the PRA and OMB control number 0694-0088. You may send comments regarding the collection of information associated with this rule, including suggestions for reducing the burden, to Jasmeet K. Seehra, Office of Management and Budget (OMB), by email to [email protected], or by fax to (202) 395-7285. 3. This rule does not contain policies with Federalism implications as that term is defined under E.O. 13132. 4. The Department finds that there is good cause under 5 U.S.C. 553(b)(B) to waive the provisions of the Administrative Procedure Act (APA) requiring prior notice and the opportunity for public comment because they are either unnecessary or contrary to the public interest. The following revisions are non-substantive or are limited to ensure consistency with the intent of the May 13, 2014 interim final rule, and thus prior notice and the opportunity for public comment is unnecessary. ECCNs 9A004, 9A515, 9B515, and 9E515 are revised to make clarifications to the EAR to ensure consistency with the intent of the May 13, 2014 interim final rule for purposes of what spacecraft and related items warranted ITAR control and what spacecraft items were intended to be moved to the EAR, as well as for consistency with the MTCR Annex for certain changes made to ECCNs 9B515 and 9E515. This includes the changes made to Sec. Sec. 740.20(g), 742.6(a)(1), (a)(8), (b)(1)(i), (b)(5) and (b)(6), and 750.4(b)(4), (b)(8) and (d)(2)(iv) to ensure appropriate controls are in place under the EAR for the additional spacecraft and related items that are moved to the CCL in this final rule in response to public comments and additional U.S. Government review of those comments. Finally, as contemplated in the May 13 rule, BIS has added five entries to the .y paragraph of ECCN 9A515, which were added as a result of the Sec. 748.3(e) process. For purposes of the APA, there is good cause, and it is in the public interest to incorporate this change so the public can benefit from understanding the classification of the items. These revisions are important to implement as soon as possible so the public will be aware of the correct text and meaning of current EAR provisions. BIS finds good cause to waive the 30-day delay in effectiveness under 5 U.S.C. 553(d)(3). As mentioned previously, the revisions made by this rule are non-substantive or are limited to ensure consistency with the intent of the May 13, 2014 interim final rule and are important to implement as soon as possible so the public will be aware of the correct text and meaning of current EAR provisions. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for these amendments by 5 U.S.C. 553, or by any other law, the analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not applicable. List of Subjects 15 CFR Parts 740 and 750 Administrative practice and procedure, Exports, Reporting and recordkeeping requirements. 15 CFR Part 742 Exports, Terrorism. 15 CFR Part 774 Exports, Reporting and recordkeeping requirements. Accordingly, the Export Administration Regulations (15 CFR parts 730-774) are amended as follows: PART 740--[AMENDED] 0 1. The authority citation for 15 CFR part 740 continues to read as follows: Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 4, 2016, 81 FR 52587 (August 8, 2016). 0 2. Section 740.20 is amended by revising the heading of paragraph (g) and paragraph (g)(1) to read as follows: Sec. 740.20 License exception strategic trade authorization (STA). * * * * * (g) License Exception STA eligibility requests for 9x515 and ``600 series'' items--(1) Applicability. Any person may request License Exception STA eligibility for end items described in ECCN 0A606.a, ECCN 8A609.a, ECCN 8A620.a or .b, ``spacecraft'' in ECCN [[Page 2881]] 9A515.a.1, .a.2, .a.3, .a.4, or .g, that provide space-based logistics, assembly or servicing of any spacecraft (e.g., refueling), ECCN 9A610.a, or ECCN 9E515.b, .d, .e, or .f. * * * * * PART 742--[AMENDED] 0 3. The authority citation for 15 CFR part 742 continues to read as follows: Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; Notice of November 12, 2015, 80 FR 70667 (November 13, 2015); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016). 0 4. Section 742.6 is amended: 0 a. By revising paragraph (a)(1); 0 b. By adding paragraph (a)(8); 0 c. By revising the fourth sentence of paragraph (b)(1)(i); and 0 d. By adding paragraphs (b)(5) and (6), to read as follows: Sec. 742.6 Regional stability. (a) * * * (1) RS Column 1 license requirements in general. A license is required for exports and reexports to all destinations, except Canada, for all items in ECCNs on the CCL that include RS Column 1 in the Country Chart column of the ``License Requirements'' section. Transactions described in paragraphs (a)(2), (a)(3), or (a)(8) of this section are subject to the RS Column 1 license requirements set forth in those paragraphs rather than the license requirements set forth in this paragraph (a)(1). * * * * * (8) Special RS Column 1 license requirement applicable to certain spacecraft and related items. A license is required for all destinations, including Canada, for spacecraft and related items classified under ECCN 9A515.a.1, .a.2., .a.3., .a.4., .g, and ECCN 9E515.f. (b) * * * (1) * * * (i) *** Applications for export or reexport of items classified under any 9x515 or ``600 series'' ECCN requiring a license in accordance with paragraph (a)(1) or (a)(8) of this section will also be reviewed consistent with United States arms embargo policies in Sec. 126.1 of the ITAR (22 CFR 126.1) if destined to a country set forth in Country Group D:5 in Supplement No. 1 to part 740 of the EAR. * * * * * * * * (5) Spacecraft for launch. (i) Applications to export or reexport a ``spacecraft'' controlled under ECCN 9A515.a for launch in or by a country that is not a member of the North Atlantic Treaty Organization (NATO) or a major non-NATO ally of the United States (as defined in 22 CFR 120.31 and 120.32), will require a technology transfer control plan approved by the Department of Defense, an encryption technology control plan approved by the National Security Agency, and Department of Defense monitoring of all launch activities. (ii) Applications to export or reexport a ``spacecraft'' controlled under ECCN 9A515.a for launch in or by a country that is a member of the North Atlantic Treaty Organization (NATO) or a major non-NATO ally of the United States (as defined in 22 CFR 120.31 and 120.32), may require a technology transfer control plan approved by the Department of Defense, an encryption technology control plan approved by the National Security Agency, or Department of Defense monitoring of launch activities. (6) Remote sensing spacecraft. Applications to export or reexport a ``spacecraft'' described in ECCN 9A515.a.1,.a.2, a.3, or .a.4, sensitive remote sensing components described in 9A515.g, or ``technology'' described in ECCN 9E515.f may require a government-to- government agreement at the discretion of the U.S. Government. * * * * * PART 750--[AMENDED] 0 5. The authority citation for 15 CFR part 750 continues to read as follows: Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2013 Comp., p. 223; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; Notice of August 4, 2016, 81 FR 52587 (August 8, 2016). 0 6. Section 750.4 is amended: 0 a. By adding paragraph (b)(8); and 0 b. By adding paragraph (d)(2)(iv) to read as follows: Sec. 750.4 Procedures for processing license applications. * * * * * (b) * * * (8) Satellites for launch. Applicant must obtain approval by the Department of Defense of a technology transfer control plan and the National Security Agency of an encryption technology transfer control plan and must make arrangements with the Department of Defense for monitoring of all launch activities. * * * * * (d) * * * (2) * * * (iv) Remote Sensing Interagency Working Group (RSIWG). The RSIWG, chaired by the State Department, reviews license applications involving remote sensing spacecraft described in ECCN 9A515.a.1, .a.2, .a.3, or .a.4, sensitive remote sensing components described in 9A515.g, or ``technology'' described in ECCN 9E515.f. * * * * * PART 774--[AMENDED] 0 7. 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; 42 U.S.C. 2139a; 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). 0 8. In Supplement No. 1 to Part 774, Category 9--Aerospace and Propulsion, ECCN 9A004 is amended: 0 a. By revising the License Requirements table; 0 b. By adding ``items'' paragraph u. and v. to the List of Items Controlled section; and 0 c. By revising ``items'' paragraph y. in the List of Items Controlled section to read as follows: Supplement No. 1 to Part 774--The Commerce Control List * * * * * 9A004 Space launch vehicles and ``spacecraft,'' ``spacecraft buses,'' ``spacecraft payloads,'' ``spacecraft'' on-board systems or equipment, and terrestrial equipment, as follows (see List of Items Controlled). License Requirements Reason for Control: NS and AT Country chart (see Supp. No. Control(s) 1 to part 738) NS applies to 9A004.u, .v, .w and .x...... NS Column 1 AT applies to 9A004.u, .v, .w, .x and .y.. AT Column 1 * * * * * [[Page 2882]] List of Items Controlled * * * * * u. The James Webb Space Telescope (JWST) being developed, launched, and operated under the supervision of the U.S. National Aeronautics and Space Administration (NASA). v. ``Parts,'' ``components,'' ``accessories'' and ``attachments'' that are ``specially designed'' for the James Webb Space Telescope and that are not: v.1. Enumerated or controlled in the USML; v.2. Microelectronic circuits; v.3. Described in ECCNs 7A004 or 7A104; or v.4. Described in an ECCN containing ``space-qualified'' as a control criterion (See ECCN 9A515.x.4). * * * * * y. Items that would otherwise be within the scope of ECCN 9A004.v or .x but that have been identified in an interagency- cleared commodity classification (CCATS) pursuant to Sec. 748.3(e) as warranting control in 9A004.y. 0 9. In Supplement No. 1 to Part 774, Category 9--Aerospace and Propulsion, ECCN 9A515 is amended: 0 a. By adding a License Requirement Note at the end of the License Requirements section; 0 b. By revising the Special Conditions for STA section; 0 c. By revising the Related Controls paragraph in the List of Items Controlled section; 0 d. By revising the introductory text to the ``items'' paragraph in the List of items Controlled section; 0 e. By revising ``items'' paragraphs a. and b. in the List of Items Controlled section; 0 f. By revising the introductory text of paragraphs d. and e. in the List of Items Controlled section; 0 g. By adding ``items'' paragraph g. in the list of Items Controlled section; and 0 h. By adding ``items'' paragraphs y.2., y.3., y.4., y.5. and y.6. to read as follows: 9A515 ``Spacecraft'' and related commodities, as follows (see List of Items Controlled). License Requirements * * * * * License Requirement Note: The Commerce Country Chart is not used for determining license requirements for commodities classified in ECCN 9A515.a.1, .a.2., .a.3., .a.4, and .g. See Sec. 742.6(a)(8), which specifies that such commodities are subject to a worldwide license requirement. * * * * * Special Conditions for STA STA: (1) Paragraph (c)(1) of License Exception STA (Sec. 740.20(c)(1) of the EAR) may not be used for ``spacecraft'' in ECCN 9A515.a.1, .a.2, .a.3, or .a.4, or items in 9A515.g, unless determined by BIS to be eligible for License Exception STA in accordance with Sec. 740.20(g) (License Exception STA eligibility requests for certain 9x515 and ``600 series'' items). (2) License Exception STA may not be used if the ``spacecraft'' controlled in ECCN 9A515.a.1, .a.2, .a.3, or .a.4 contains a separable or removable propulsion system enumerated in USML Category IV(d)(2) or USML Category XV(e)(12) and designated MT. (3) Paragraph (c)(2) of License Exception STA (Sec. 740.20(c)(2) of the EAR) may not be used for any item in 9A515. List of Items Controlled Related Controls: Spacecraft, launch vehicles and related articles that are enumerated in the USML, and technical data (including ``software'') directly related thereto, and all services (including training) directly related to the integration of any satellite or spacecraft to a launch vehicle, including both planning and onsite support, or furnishing any assistance (including training) in the launch failure analysis or investigation for items in ECCN 9A515.a, are ``subject to the ITAR.'' All other ``spacecraft,'' as enumerated below and defined in Sec. 772.1, are subject to the controls of this ECCN. See also ECCNs 3A001, 3A002, 3A991, 3A992, 6A002, 6A004, 6A008, and 6A998 for specific ``space-qualified'' items, 7A004 and 7A104 for star trackers, and 9A004 for the International Space Station (ISS), James Webb Space Telescope (JWST), and ``specially designed'' ``parts'' and ``components'' therefor. See USML Category XI(c) for controls on microwave monolithic integrated circuits (MMICs) that are ``specially designed'' for defense articles. See ECCN 9A610.g for pressure suits used for high altitude aircraft. * * * * * Items: ``Spacecraft'' and other items described in ECCN 9A515 remain subject to the EAR even if exported, reexported, or transferred (in- country) with defense articles ``subject to the ITAR'' integrated into and included therein as integral parts of the item. In all other cases, such defense articles are subject to the ITAR. For example, a 9A515.a ``spacecraft'' remains ``subject to the EAR'' even when it is exported, reexported, or transferred (in-country) with a ``hosted payload'' described in USML Category XV(e)(17) incorporated therein. In all other cases, a ``hosted payload'' performing a function described in USML Category XV(a) always remains a USML item. The removal of the defense article subject to the ITAR from the spacecraft is a retransfer under the ITAR and would require an ITAR authorization, regardless of the CCL authorization the spacecraft is exported under. Additionally, transfer of technical data regarding the defense article subject to the ITAR integrated into the spacecraft would require an ITAR authorization. * * * * * a. ``Spacecraft,'' including satellites, and space vehicles, whether designated developmental, experimental, research or scientific, not enumerated in USML Category XV or described in ECCN 9A004, that: a.1. Have electro-optical remote sensing capabilities and having a clear aperture greater than 0.35 meters, but less than or equal to 0.50 meters; a.2. Have remote sensing capabilities beyond NIR (i.e., SWIR, MWIR, or LWIR); a.3. Have radar remote sensing capabilities (e.g., AESA, SAR, or ISAR) having a center frequency equal to or greater than 1.0 GHz, but less than 10.0 GHz and having a bandwidth equal to or greater than 100 MHz, but less than 300 MHz; a.4. Provide space-based logistics, assembly, or servicing of another ``spacecraft''; or a.5. Are not described in ECCN 9A515.a.1, .a.2, .a.3 or .a.4. Note: ECCN 9A515.a includes commercial communications satellites, remote sensing satellites, planetary rovers, planetary and interplanetary probes, and in-space habitats, not identified in ECCN 9A004 or USML Category XV(a). b. Ground control systems and training simulators ``specially designed'' for telemetry, tracking, and control of the ``spacecraft'' controlled in paragraphs 9A004.u or 9A515.a. * * * * * d. Microelectronic circuits (e.g., integrated circuits, microcircuits, or MOSFETs) and discrete electronic components rated, certified, or otherwise specified or described as meeting or exceeding all the following characteristics and that are ``specially designed'' for defense articles, ``600 series'' items, or items controlled by ECCNs 9A004.v or 9A515: * * * * * e. Microelectronic circuits (e.g., integrated circuits, microcircuits, or MOSFETs) and discrete electronic components that are rated, certified, or otherwise specified or described as meeting or exceeding the characteristics in either paragraph e.1 or e.2, AND ``specially designed'' for defense articles controlled by USML Category XV or items controlled by ECCNs 9A004.u or 9A515: * * * * * g. Remote sensing components ``specially designed'' for ``spacecraft'' described in ECCNs 9A515.a.1 through 9A515.a.4 as follows: g.1. Space-qualified optics (i.e., lens, mirror, membrane having active properties (e.g., adaptive, deformable)) with the largest lateral clear aperture dimension equal to or less than 0.35 meters; or with the largest clear aperture dimension greater than 0.35 meters but less than or equal to 0.50 meters; g.2. Optical bench assemblies ``specially designed'' for ECCN 9A515.a.1, 9A515.a.2, 9A515.a.3, or 9A515.a.4 ``spacecraft;'' or g.3. Primary, secondary, or hosted payloads that perform a function of ECCN 9A515.a.1, 9A515.a.2, 9A515.a.3, or 9A515.a.4 ``spacecraft.'' * * * * * y. * * * y.2. Space grade or for spacecraft applications thermistors; y.3. Space grade or for spacecraft applications RF microwave bandpass ceramic filters (Dielectric Resonator Bandpass Filters); [[Page 2883]] y.4. Space grade or for spacecraft applications hall effect sensors; y.5. Space grade or for spacecraft applications subminiature (SMA and SMP) plugs and connectors, TNC plugs and cable and connector assemblies with SMA plugs and connectors; and y.6. Space grade or for spacecraft applications flight cable assemblies. 0 10. In Supplement No. 1 to Part 774, Category 9--Aerospace and Propulsion, ECCN 9B515 is amended: 0 a. By revising the License Requirements section; and 0 b. By revising ``items'' paragraph a. in the List of Items Controlled section to read as follows: 9B515 Test, inspection, and production ``equipment'' ``specially designed'' for ``spacecraft'' and related commodities, as follows (see List of Items Controlled). License Requirements Reason for Control: NS, MT, RS, AT Country chart (see Supp. Control(s) No. 1 to part 738) NS applies to entire entry................ NS Column 1 MT applies to equipment in 9B515.a for the MT Column 1 ``development'' or ``production'' of commodities in USML Category XV(e)(12) and XV(e)(19) that are MT controlled. RS applies to entire entry................ RS Column 1 AT applies to entire entry................ AT Column 1 * * * * * Items: a. Test, inspection, and production ``equipment'' ``specially designed'' for the ``production'' or ``development'' of commodities enumerated in ECCNs 9A004.u, 9A515.a, or USML Category XV(a) or XV(e). Note: ECCN 9B515.a includes equipment, cells, and stands ``specially designed'' for the analysis or isolation of faults in commodities enumerated in ECCNs 9A004.u or 9A515.a, or USML Category XV(a) or XV(e). * * * * * 0 11. In Supplement No. 1 to Part 774, Category 9--Aerospace and Propulsion, ECCN 9E515 is amended: 0 a. By revising the License Requirements table; 0 b. By adding a License Requirement Note at the end of the License Requirements section; 0 c. By revising paragraph (1) in the Special Conditions for STA section; 0 d. By revising the Related Controls paragraph in the List of Items Controlled section; 0 e. By revising ``items'' paragraph a. in the List of Items Controlled section; and 0 f. By adding ``items'' paragraph f. in the list of Items Controlled section to read as follows: 9E515 ``Technology'' ``required'' for the ``development,'' ``production,'' operation, installation, repair, overhaul, or refurbishing of ``spacecraft'' and related commodities, as follows (see List of Items Controlled). License Requirements * * * * * Country chart (see Supp. Control(s) No. 1 to part 738) NS applies to entire entry except 9E515.y. NS Column 1 MT applies to technology for items in MT Column 1 9A515.d, 9A515.e.2 and 9B515.a controlled for MT reasons. RS applies to entire entry except 9E515.y. RS Column 1 AT applies to entire entry................ AT Column 1 License Requirement Note: The Commerce Country Chart is not used for determining license requirements for ``technology'' classified ECCN 9E515.f. See Sec. 742.6(a)(8), which specifies that such ``technology'' is subject to a worldwide license requirement. * * * * * Special Conditions for STA STA: (1) Paragraph (c)(1) of License Exception STA (Sec. 740.20(c)(1) of the EAR) may not be used for ECCN 9E515.b, .d, .e, or .f unless determined by BIS to be eligible for License Exception STA in accordance with Sec. 740.20(g) (License Exception STA eligibility requests for certain 9x515 and ``600 series'' items). * * * List of Items Controlled Related Controls: Technical data directly related to articles enumerated in USML Category XV are subject to the control of USML paragraph XV(f). See also ECCNs 3E001, 3E003, 6E001, and 6E002 for specific ``space-qualified'' items. See ECCNs 9E001 and 9E002 for technology for the International Space Station, the James Webb Space Telescope (JWST) and ``parts,'' ``components,'' ``accessories,'' and ``attachments'' ``specially designed'' therefor. See USML category XV(f) for controls on technical data and defense services related to launch vehicle integration. * * * * * Items: a. ``Technology'' ``required'' for the ``development,'' ``production,'' installation, repair (including on-orbit anomaly resolution and analysis beyond established procedures), overhaul, or refurbishing of commodities controlled by ECCN 9A515 (except 9A515.a.1, .a.2, .a.3, .a.4, .b, .d, .e, or .g), ECCN 9B515, or ``software'' controlled by ECCN 9D515.a. * * * * * f. ``Technology'' ``required'' for the ``development,'' ``production,'' installation, repair (including on-orbit anomaly resolution and analysis beyond established procedures), overhaul, or refurbishing of commodities controlled by ECCN 9A515.a.1, .a.2, .a.3, .a.4, or .g. * * * * * Dated: December 27, 2016. Kevin J. Wolf, Assistant Secretary of Commerce for Export Administration. [FR Doc. 2016-31755 Filed 1-9-17; 8:45 am] BILLING CODE P
![Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations 2875
(Lat. 44°52′27″ N., long. 87°54′35″ W.) DEPARTMENT OF COMMERCE USML. Both May 13 rules and the
That airspace extending upward from 700 subsequent related rules are part of the
feet above the surface within a 6.3-mile Bureau of Industry and Security President’s Export Control Reform
radius of Oconto-J. Douglas Bake Municipal Initiative. This rule is also part of
Airport. 15 CFR Parts 740, 742, 750, and 774 Commerce’s retrospective regulatory
* * * * * [Docket No. 150325297–6180–02]
review plan under Executive Order (EO)
13563 (see the SUPPLEMENTARY
AGL WI E5 Phillips, WI [Amended] RIN 0694–AG59 INFORMATION section of this rule for
Price County Airport, WI information on the availability of the
(Lat. 45°42′32″ N., long. 90°24′09″ W.) Revisions to the Export Administration plan).
Regulations (EAR): Control of
That airspace extending upward from 700 DATES: This rule is effective on January
Spacecraft Systems and Related Items
feet above the surface within a 6.6-mile
the President Determines No Longer 15, 2017.
radius of Price County Airport. FOR FURTHER INFORMATION CONTACT: For
Warrant Control Under the United
AGL WI E5 Platteville, WI [Amended] States Munitions List (USML) questions about the ECCNs included in
this rule, contact Dennis Krepp, Office
Platteville Municipal Airport, WI AGENCY: Bureau of Industry and of National Security and Technology
(Lat. 42°41′22″ N., long. 90°26′40″ W.) Security, Department of Commerce. Transfer Controls, Bureau of Industry
That airspace extending upward from 700 ACTION: Final rule. and Security, U.S. Department of
feet above the surface within a 6.4-mile Commerce, Telephone: 202–482–1309,
radius of Platteville Municipal Airport, and SUMMARY: This final rule addresses email: Dennis.Krepp@bis.doc.gov. For
within 4 miles each side of the 145° bearing issues raised in, and public comments general questions about the regulatory
from the airport extending from the 6.4-mile on, the interim final rule that was changes pertaining to satellites,
radius to 10.2 miles southeast of the airport. published on May 13, 2014, as well as spacecraft, and related items, contact
* * * * * additional clarifications and corrections. the Regulatory Policy Division, Office of
The May 13 rule added controls to the Exporter Services, Bureau of Industry
AGL WI E5 Solon Springs, WI [Amended]
Export Administration Regulations and Security, at 202–482–2440 or email:
Solon Springs Municipal Airport, WI (EAR) for spacecraft and related items rpd2@bis.doc.gov.
(Lat. 46°18′53″ N., long. 91°48′59″ W.) that the President has determined no SUPPLEMENTARY INFORMATION:
That airspace extending upward from 700 longer warrant control under United
feet above the surface within a 6.3-mile States Munitions List (USML) Category Background
radius of Solon Springs Municipal Airport. XV—spacecraft and related items. This final rule addresses issues raised
* * * * * This is the third final rule BIS has in, and public comments on, the interim
published related to the May 13 rule final rule, Revisions to the Export
AGL WI E5 Superior, WI [Amended] and completes the regulatory action for Administration Regulations (EAR):
Richard I. Bong Airport, WI. the interim final rule. These changes Control of Spacecraft Systems and
(Lat. 46°41′23″ N., long. 92°05′41″ W.) were also informed by comments Related Items the President Determines
That airspace extending upward from 700 received in response to the May 13 rule No Longer Warrant Control Under the
feet above the surface within an 8.5-mile that included a request for comments, as United States Munitions List (USML),
radius of Richard I. Bong Airport. well as interagency discussions on how that was published on May 13, 2014 (79
* * * * * best to address the comments. The FR 27417) (May 13 rule), and makes
changes made in this final rule are corrections and clarifications. The May
AGL WI E5 West Bend, WI [Amended] grouped into four types of changes: 13 rule added controls to the Export
West Bend Municipal Airport, WI Changes to address the movement of Administration Regulations (EAR) for
(Lat. 43°25′20″ N., long. 88°07′41″ W.) additional spacecraft and related items spacecraft and related items that the
West Bend VOR from the USML to the Commerce President has determined no longer
(Lat. 43°25′19″ N., long. 88°07′31″ W.) Control List (CCL), as a result of changes warrant control under United States
in aperture size for spacecraft that Munitions List (USML) Category XV—
That airspace extending upward from 700
warrant ITAR control, in response to spacecraft and related items. The vast
feet above the surface within a 6.8-mile
radius of West Bend Municipal Airport, and
public comments and further U.S. majority of the changes included in the
within 2 miles each side of the 239° bearing
Government review; changes to address May 13 rule have been implemented as
from the airport extending from the 6.8-mile
the movement of the James Webb Space published in the interim final rule and
radius to 11.4 miles southwest of the airport, Telescope (JWST) from the USML to the are not republished in this final rule. A
and within 1.2 miles each side of the West CCL; other corrections and clarifications full description of those changes can be
Bend VOR 052° radial extending from the to the spacecraft interim final rule; and found in the Background section and
6.8-mile radius to 7 miles northeast of the addition of .y items to Export Control the regulatory text of the May 13 rule.
airport, and within 1.3 miles each side of the Classification Number 9A515. BIS also published corrections and
West Bend VOR 303° radial extending from This final rule is being published in clarifications to the May 13 rule in a
the 6.8-mile radius to 10 miles northwest of conjunction with the publication of a final rule published on November 12,
the airport, excluding that airspace within Department of State, Directorate of 2014 (79 FR 67055) and in a final rule
the Hartford, WI, Class E airspace area. Defense Trade Controls (DDTC) final published on July 13, 2015 (80 FR
rule, which makes changes, including 39950).
pmangrum on DSK3GDR082PROD with RULES
Issued in Fort Worth, Texas, on December
corrections and clarifications, to the This final rule is being published in
28, 2016.
provisions adopted in the State conjunction with the publication of a
Thomas L. Lattimer, Department’s own May 13, 2014 rule. Department of State, Directorate of
Acting Manager, Operations Support Group, The State May 13 rule revised USML Defense Trade Controls (DDTC) final
ATO Central Service Center. Category XV (22 CFR 121.1) to control rule, which makes changes, including
[FR Doc. 2017–00191 Filed 1–9–17; 8:45 am] those articles the President has corrections and clarifications, to the
BILLING CODE 4910–13–P determined warrant control on the provisions adopted in the May 13 State
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![2876 Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations
rule (79 FR 27180). The State May 13 remote sensing satellites are warranted, and final rule adds ECCN 9E515.b, .d, .e, or
rule revised USML Category XV (22 CFR seeks additional public comment on this .f as eligible for § 740.20(g) License
121.1) to control those articles the matter. Exception STA eligibility requests.
President has determined warrant For a discussion of the changes made Because the scope of revised paragraph
control on the USML. Both May 13 rules to the ITAR in response to the related (g) includes items other than end items,
and the subsequent related rules are part public comments, see the corresponding this final rule also revises the heading
of the President’s Export Control Reform Department of State rule published of paragraph (g) to remove the term
Initiative. today. ‘‘end items’’ and add in its place the
The changes included in this The changes described below are the term ‘‘items.’’ However, the items
Commerce final rule complete the EAR changes needed to address the eligible to be submitted under the
regulatory action begun by the May 13 movement of these additional spacecraft § 740.20(g) process are still limited to
rule and are also informed by comments (under ECCNs 9A515.a.1 to .a.4 and those specific ECCNs and ‘‘items’’
received in response to that rule. The 9A004.u) and related items (under paragraphs identified in paragraph (g).
changes made in this Commerce final 9A515.g) from the USML to the CCL. The spacecraft transferred to the CCL
rule are grouped into four types of Adopting a more permissive aperture in this final rule are subject to special
changes: (1) Changes to address the size (meaning more spacecraft items regional stability license requirements.
movement of additional spacecraft and would no longer warrant ITAR control) Therefore, in § 742.6 (Regional stability),
related items from the USML to the was strongly advocated by commenters this final rule makes revisions to five
CCL, as a result of changes in aperture in response to the Commerce interim paragraphs. The final rule revises
size for spacecraft that warrant ITAR final rule. The public believed paragraph (a)(1), adds a new paragraph
control, in response to public comments additional changes were needed to (a)(8), revises paragraph (b)(1)(i), and
and further U.S. Government review; (2) appropriately control spacecraft and adds paragraphs (b)(5) and (b)(6). These
changes to address the movement of the related items that warranted ITAR changes are described below.
James Webb Space Telescope (JWST) control, with respect to aperture size, In § 742.6, paragraph (a)(1) (RS
from the USML to the CCL; (3) other while moving those that did not warrant Column 1 license requirements in
corrections and clarifications to the ITAR control to the CCL, consistent general), this final rule adds a reference
spacecraft interim final rule; and (4) with the stated objectives in the May 13 to new paragraph (a)(8). New paragraph
addition of .y items to Export Control final rules. State and the other agencies (a)(8) (Special RS Column 1 license
Classification Number (ECCN) 9A515. reviewing the comments agreed that requirement applicable to certain
Note that certain ECCNs may be some additional spacecraft and related spacecraft and related items) is an RS
referenced in more than one of the (1) items did not warrant ITAR control. Column 1 license requirement, which is
through (4) sections, but for ease of This Commerce rule makes conforming specific to certain spacecraft and related
reference the description of those changes to the EAR to ensure that items. This paragraph specifies that a
changes to those ECCNs, such as ECCN appropriate controls are in place for license is required for all destinations,
9E515, are grouped with the related such additional spacecraft and related including Canada, for spacecraft and
changes under sections (1) through (4), items that did not warrant ITAR control, related items classified under ECCN
as applicable. based on the review of the public 9A515.a.1, .a.2., .a.3., .a.4., .g, and ECCN
comments and additional U.S. 9E515.f. Although the license
(1) Changes To Address the Movement Government review. BIS anticipates an requirement for these specified ECCN
of Additional Spacecraft and Related increase of approximately 10 to 20 9x515 items is more restrictive than for
Items From the USML to the CCL, as a license applications per year as a result those 9x515 items on the CCL prior to
Result of Changes in Aperture Size for of these changes to the EAR. publication of this rule, the license
Spacecraft That Warrant ITAR Control, Because of the more sensitive nature review policy is the same as those for
in Response to Public Comments and of these additional spacecraft and other 9x515 items. As a conforming
Further U.S. Government Review related items that are being moved to change, this final rule revises the fourth
This final rule makes several changes the CCL, additional changes are needed sentence of paragraph (b)(1)(i) to add a
to the EAR to address the movement of to the EAR to effectively control these reference to paragraph (a)(8), because
additional spacecraft and related items items. In certain cases, this means that sentence references the ECCN
from the USML to the CCL, as a result imposing more restrictive requirements 9x515 license requirements, which now
of the Department of State’s responding compared to other 9x515 items. These include those special RS license
to comments on its interim final rule, additional requirements are described requirements in paragraph (a)(8).
which specifically asked for additional below, including a description of the This final rule adds two new
public comments on this issue. The parameters for the items moved to the paragraphs, paragraph (b)(5) (Spacecraft
Department of State in its May 13 CCL. for launch) and paragraph (b)(6)
interim final rule noted: In § 740.20, paragraph (g) (License (Remote sensing spacecraft) to specify
Exception STA eligibility requests for the requirements that apply for license
Commenting parties recommended the 9x515 and ‘‘600 series’’ end items), this applications involving spacecraft and
aperture threshold for civil and commercial
remote sensing satellites in paragraph (a)(7)(i)
final rule revises paragraph (g)(1) as a remote sensing spacecraft. Consistent
be increased from 0.35 meters to a threshold conforming change to the changes made with the requirements in paragraph (y)
more appropriate for current world to ECCN 9A515.a, described below. To in Supplement No. 2 to part 748 Unique
capabilities and market conditions. The maintain the same scope of paragraph Application and Submission
Department [of State] did not accept this (g)(1), this final rule removes the text Requirements, this final rule adds
pmangrum on DSK3GDR082PROD with RULES
recommendation at this time. However, it, that referred to ECCN 9A515.a and adds paragraphs (b)(5)(i) and (b)(5)(ii) to
along with other agencies, understands that in its place text referencing ‘‘spacecraft’’ specify when applications to export or
the technology and civil and commercial in 9A515.a.1, .a.2, .a.3, or .a.4, or items reexport a ‘‘spacecraft’’ controlled under
applications in this area are evolving. Thus,
the Department has committed to reviewing in 9A515.g. The spacecraft in ECCN ECCN 9A515.a for launch in or by a
during the six months after the publication 9A515.a.5 are eligible for License country will or may require a
of this rule whether further amendments to Exception STA without a § 740.20(g) technology transfer control plan (TCP)
the USML controls on civil and commercial request. As a conforming change, this approved by the Department of Defense
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![2880 Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations
will continue to form, the basis for information displays a currently valid process. For purposes of the APA, there
ongoing reviews of the rule and OMB control number. This regulation is good cause, and it is in the public
assessments of various aspects of the involves collections previously interest to incorporate this change so the
rule. As part of its plan for retrospective approved by OMB under control public can benefit from understanding
analysis under EO 13563, BIS intends to number 0694–0088, Simplified Network the classification of the items. These
conduct periodic reviews of this rule Application Processing System, which revisions are important to implement as
and to modify, or repeal, aspects of this includes, among other things, license soon as possible so the public will be
rule, as appropriate, and after public applications and carries a burden aware of the correct text and meaning of
notice and comment. Some of the estimate of 43.8 minutes for a manual or current EAR provisions.
changes described above are limited to electronic submission. Total burden BIS finds good cause to waive the 30-
corrections or clarifications of what was hours associated with the PRA and day delay in effectiveness under 5
included in the May 13 rule. BIS OMB control number 0694–0088 are U.S.C. 553(d)(3). As mentioned
estimates that the substantive changes expected to increase slightly as a result previously, the revisions made by this
described above will result in an of this rule. The expected increase in rule are non-substantive or are limited
increase of 30–40 license applications total burden hours is expected to be to ensure consistency with the intent of
per year, which is within the previous minimal and to not exceed the existing the May 13, 2014 interim final rule and
estimate made for the number of license estimates for burden hours associated are important to implement as soon as
applications that BIS anticipated with the PRA and OMB control number possible so the public will be aware of
receiving as a result of the movement of 0694–0088. You may send comments the correct text and meaning of current
these spacecraft and related items to the regarding the collection of information EAR provisions.
CCL under the May 13 rule. associated with this rule, including Because a notice of proposed
suggestions for reducing the burden, to rulemaking and an opportunity for
Export Administration Act
Jasmeet K. Seehra, Office of public comment are not required to be
Although the Export Administration Management and Budget (OMB), by given for these amendments by 5 U.S.C.
Act expired on August 20, 2001, the email to Jasmeet_K._Seehra@ 553, or by any other law, the analytical
President, through Executive Order omb.eop.gov, or by fax to (202) 395– requirements of the Regulatory
13222 of August 17, 2001, 3 CFR, 2001 7285. Flexibility Act, 5 U.S.C. 601 et seq., are
Comp., p. 783 (2002), as amended by 3. This rule does not contain policies not applicable.
Executive Order 13637 of March 8, with Federalism implications as that
2013, 78 FR 16129 (March 13, 2013) and term is defined under E.O. 13132. List of Subjects
as extended by the Notice of August 4, 4. The Department finds that there is 15 CFR Parts 740 and 750
2016, 81 FR 52587 (August 8, 2016), has good cause under 5 U.S.C. 553(b)(B) to
continued the Export Administration waive the provisions of the Administrative practice and
Regulations in effect under the Administrative Procedure Act (APA) procedure, Exports, Reporting and
International Emergency Economic requiring prior notice and the recordkeeping requirements.
Powers Act. BIS continues to carry out opportunity for public comment 15 CFR Part 742
the provisions of the Export because they are either unnecessary or
Exports, Terrorism.
Administration Act, as appropriate and contrary to the public interest. The
to the extent permitted by law, pursuant following revisions are non-substantive 15 CFR Part 774
to Executive Order 13222 as amended or are limited to ensure consistency Exports, Reporting and recordkeeping
by Executive Order 13637. with the intent of the May 13, 2014 requirements.
interim final rule, and thus prior notice
Rulemaking Requirements Accordingly, the Export
and the opportunity for public comment
1. Executive Orders 13563 and 12866 Administration Regulations (15 CFR
is unnecessary. ECCNs 9A004, 9A515,
direct agencies to assess all costs and parts 730–774) are amended as follows:
9B515, and 9E515 are revised to make
benefits of available regulatory clarifications to the EAR to ensure PART 740—[AMENDED]
alternatives and, if regulation is consistency with the intent of the May
necessary, to select regulatory 13, 2014 interim final rule for purposes ■ 1. The authority citation for 15 CFR
approaches that maximize net benefits of what spacecraft and related items part 740 continues to read as follows:
(including potential economic, warranted ITAR control and what Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
environmental, public health and safety spacecraft items were intended to be 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O.
effects, distribute impacts, and equity). moved to the EAR, as well as for 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
Executive Order 13563 emphasizes the consistency with the MTCR Annex for 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
importance of quantifying both costs certain changes made to ECCNs 9B515 Comp., p. 783; Notice of August 4, 2016, 81
and benefits, of reducing costs, of and 9E515. This includes the changes FR 52587 (August 8, 2016).
harmonizing rules, and of promoting made to §§ 740.20(g), 742.6(a)(1), (a)(8), ■ 2. Section 740.20 is amended by
flexibility. This final rule has been (b)(1)(i), (b)(5) and (b)(6), and revising the heading of paragraph (g)
designated a ‘‘significant regulatory 750.4(b)(4), (b)(8) and (d)(2)(iv) to and paragraph (g)(1) to read as follows:
action,’’ although not economically ensure appropriate controls are in place
significant, under section 3(f) of under the EAR for the additional § 740.20 License exception strategic trade
Executive Order 12866. spacecraft and related items that are authorization (STA).
2. Notwithstanding any other moved to the CCL in this final rule in * * * * *
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provision of law, no person is required response to public comments and (g) License Exception STA eligibility
to respond to, nor is subject to a penalty additional U.S. Government review of requests for 9x515 and ‘‘600 series’’
for failure to comply with, a collection those comments. Finally, as items—(1) Applicability. Any person
of information, subject to the contemplated in the May 13 rule, BIS may request License Exception STA
requirements of the Paperwork has added five entries to the .y eligibility for end items described in
Reduction Act of 1995 (44 U.S.C. 3501 paragraph of ECCN 9A515, which were ECCN 0A606.a, ECCN 8A609.a, ECCN
et seq.) (PRA), unless that collection of added as a result of the § 748.3(e) 8A620.a or .b, ‘‘spacecraft’’ in ECCN
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![Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations 2881
9A515.a.1, .a.2, .a.3, .a.4, or .g, that D:5 in Supplement No. 1 to part 740 of control plan and the National Security
provide space-based logistics, assembly the EAR. * * * Agency of an encryption technology
or servicing of any spacecraft (e.g., * * * * * transfer control plan and must make
refueling), ECCN 9A610.a, or ECCN (5) Spacecraft for launch. (i) arrangements with the Department of
9E515.b, .d, .e, or .f. Applications to export or reexport a Defense for monitoring of all launch
* * * * * ‘‘spacecraft’’ controlled under ECCN activities.
9A515.a for launch in or by a country * * * * *
PART 742—[AMENDED] that is not a member of the North (d) * * *
Atlantic Treaty Organization (NATO) or (2) * * *
■ 3. The authority citation for 15 CFR a major non-NATO ally of the United
part 742 continues to read as follows: (iv) Remote Sensing Interagency
States (as defined in 22 CFR 120.31 and Working Group (RSIWG). The RSIWG,
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 120.32), will require a technology chaired by the State Department,
1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. transfer control plan approved by the
2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
reviews license applications involving
Department of Defense, an encryption remote sensing spacecraft described in
Sec. 1503, Pub. L. 108–11, 117 Stat. 559; E.O.
technology control plan approved by the ECCN 9A515.a.1, .a.2, .a.3, or .a.4,
12058, 43 FR 20947, 3 CFR, 1978 Comp., p.
179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 National Security Agency, and sensitive remote sensing components
Comp., p. 608; E.O. 12938, 59 FR 59099, 3 Department of Defense monitoring of all described in 9A515.g, or ‘‘technology’’
CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR launch activities. described in ECCN 9E515.f.
58767, 3 CFR, 1996 Comp., p. 228; E.O. (ii) Applications to export or reexport
* * * * *
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. a ‘‘spacecraft’’ controlled under ECCN
783; Presidential Determination 2003–23, 68 9A515.a for launch in or by a country PART 774—[AMENDED]
FR 26459, 3 CFR, 2004 Comp., p. 320; Notice that is a member of the North Atlantic
of November 12, 2015, 80 FR 70667 Treaty Organization (NATO) or a major ■ 7. The authority citation for 15 CFR
(November 13, 2015); Notice of August 4, non-NATO ally of the United States (as
2016, 81 FR 52587 (August 8, 2016). part 774 continues to read as follows:
defined in 22 CFR 120.31 and 120.32), Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
■ 4. Section 742.6 is amended: may require a technology transfer 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
■ a. By revising paragraph (a)(1); control plan approved by the 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
■ b. By adding paragraph (a)(8); Department of Defense, an encryption seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15
■ c. By revising the fourth sentence of technology control plan approved by the U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201
paragraph (b)(1)(i); and National Security Agency, or et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR
■ d. By adding paragraphs (b)(5) and (6), 58767, 3 CFR, 1996 Comp., p. 228; E.O.
Department of Defense monitoring of
to read as follows: 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
launch activities.
(6) Remote sensing spacecraft. 783; Notice of August 4, 2016, 81 FR 52587
§ 742.6 Regional stability.
(August 8, 2016).
(a) * * * Applications to export or reexport a
(1) RS Column 1 license requirements ‘‘spacecraft’’ described in ECCN ■ 8. In Supplement No. 1 to Part 774,
in general. A license is required for 9A515.a.1,.a.2, a.3, or .a.4, sensitive Category 9—Aerospace and Propulsion,
exports and reexports to all remote sensing components described ECCN 9A004 is amended:
destinations, except Canada, for all in 9A515.g, or ‘‘technology’’ described ■ a. By revising the License
items in ECCNs on the CCL that include in ECCN 9E515.f may require a Requirements table;
RS Column 1 in the Country Chart government-to-government agreement at ■ b. By adding ‘‘items’’ paragraph u. and
column of the ‘‘License Requirements’’ the discretion of the U.S. Government. v. to the List of Items Controlled section;
section. Transactions described in * * * * * and
paragraphs (a)(2), (a)(3), or (a)(8) of this ■ c. By revising ‘‘items’’ paragraph y. in
section are subject to the RS Column 1 PART 750—[AMENDED] the List of Items Controlled section to
license requirements set forth in those read as follows:
paragraphs rather than the license ■ 5. The authority citation for 15 CFR
part 750 continues to read as follows: Supplement No. 1 to Part 774—The
requirements set forth in this paragraph
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. Commerce Control List
(a)(1).
1701 et seq.; Sec. 1503, Pub. L. 108–11, 117 * * * * *
* * * * *
Stat. 559; E.O. 13026, 61 FR 58767, 3 CFR, 9A004 Space launch vehicles and
(8) Special RS Column 1 license 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, ‘‘spacecraft,’’ ‘‘spacecraft buses,’’
requirement applicable to certain 3 CFR, 2001 Comp., p. 783; E.O. 13637, 78 ‘‘spacecraft payloads,’’ ‘‘spacecraft’’ on-
spacecraft and related items. A license FR 16129, 3 CFR, 2013 Comp., p. 223; board systems or equipment, and
is required for all destinations, Presidential Determination 2003–23, 68 FR terrestrial equipment, as follows (see
including Canada, for spacecraft and 26459, 3 CFR, 2004 Comp., p. 320; Notice of List of Items Controlled).
related items classified under ECCN August 4, 2016, 81 FR 52587 (August 8,
2016). License Requirements
9A515.a.1, .a.2., .a.3., .a.4., .g, and ECCN
9E515.f. Reason for Control: NS and AT
■ 6. Section 750.4 is amended:
(b) * * * ■ a. By adding paragraph (b)(8); and
(1) * * * Country chart
■ b. By adding paragraph (d)(2)(iv) to Control(s) (see Supp. No. 1 to
(i) *** Applications for export or read as follows: part 738)
reexport of items classified under any
pmangrum on DSK3GDR082PROD with RULES
9x515 or ‘‘600 series’’ ECCN requiring a § 750.4 Procedures for processing license NS applies to NS Column 1
license in accordance with paragraph applications. 9A004.u, .v, .w and
(a)(1) or (a)(8) of this section will also * * * * * .x.
be reviewed consistent with United (b) * * * AT applies to AT Column 1
States arms embargo policies in § 126.1 (8) Satellites for launch. Applicant 9A004.u, .v, .w, .x
of the ITAR (22 CFR 126.1) if destined and .y.
must obtain approval by the Department
to a country set forth in Country Group of Defense of a technology transfer * * * * *
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![Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations 2883
y.4. Space grade or for spacecraft ■ f. By adding ‘‘items’’ paragraph f. in ECCN 9B515, or ‘‘software’’ controlled by
applications hall effect sensors; the list of Items Controlled section to ECCN 9D515.a.
y.5. Space grade or for spacecraft read as follows: * * * * *
applications subminiature (SMA and SMP) f. ‘‘Technology’’ ‘‘required’’ for the
plugs and connectors, TNC plugs and cable 9E515 ‘‘Technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’ installation,
and connector assemblies with SMA plugs ‘‘development,’’ ‘‘production,’’
repair (including on-orbit anomaly resolution
and connectors; and operation, installation, repair, overhaul,
and analysis beyond established procedures),
y.6. Space grade or for spacecraft or refurbishing of ‘‘spacecraft’’ and
overhaul, or refurbishing of commodities
applications flight cable assemblies. related commodities, as follows (see List
controlled by ECCN 9A515.a.1, .a.2, .a.3, .a.4,
of Items Controlled).
■ 10. In Supplement No. 1 to Part 774, or .g.
Category 9—Aerospace and Propulsion, License Requirements * * * * *
ECCN 9B515 is amended: * * * * * Dated: December 27, 2016.
■ a. By revising the License Kevin J. Wolf,
Requirements section; and Country chart
Control(s) (see Supp. No. 1 to Assistant Secretary of Commerce for Export
■ b. By revising ‘‘items’’ paragraph a. in
part 738) Administration.
the List of Items Controlled section to
[FR Doc. 2016–31755 Filed 1–9–17; 8:45 am]
read as follows: NS applies to entire NS Column 1
BILLING CODE P
9B515 Test, inspection, and production entry except
‘‘equipment’’ ‘‘specially designed’’ for 9E515.y.
‘‘spacecraft’’ and related commodities, MT applies to tech- MT Column 1
nology for items in DEPARTMENT OF COMMERCE
as follows (see List of Items Controlled).
9A515.d,
License Requirements 9A515.e.2 and Bureau of Industry and Security
Reason for Control: NS, MT, RS, AT 9B515.a controlled
for MT reasons. 15 CFR Part 744
Country chart RS applies to entire RS Column 1
[Docket No. 161221999–6999–01]
Control(s) (see Supp. No. 1 to entry except
part 738) 9E515.y. RIN 0694—AH23
AT applies to entire AT Column 1
NS applies to entire NS Column 1 entry. Addition of Certain Persons and
entry. Revisions to Entries on the Entity List;
MT applies to equip- MT Column 1 LICENSE REQUIREMENT NOTE: The Commerce
Country Chart is not used for determining and Removal of a Person From the
ment in 9B515.a Entity List
for the ‘‘develop- license requirements for ‘‘technology’’
classified ECCN 9E515.f. See § 742.6(a)(8),
ment’’ or ‘‘produc- AGENCY: Bureau of Industry and
which specifies that such ‘‘technology’’ is
tion’’ of commod- Security, Commerce.
subject to a worldwide license requirement.
ities in USML Cat- ACTION: Final rule.
egory XV(e)(12) * * * * *
and XV(e)(19) that SUMMARY: This rule amends the Export
are MT controlled. Special Conditions for STA
Administration Regulations (EAR) by
RS applies to entire RS Column 1 STA: (1) Paragraph (c)(1) of License
Exception STA (§ 740.20(c)(1) of the EAR)
adding five persons to the Entity List.
entry.
AT applies to entire AT Column 1 may not be used for ECCN 9E515.b, .d, .e, The five persons who are added to the
entry. or .f unless determined by BIS to be Entity List have been determined by the
eligible for License Exception STA in U.S. Government to be acting contrary
* * * * * accordance with § 740.20(g) (License to the national security or foreign policy
Items: Exception STA eligibility requests for interests of the United States. These five
a. Test, inspection, and production certain 9x515 and ‘‘600 series’’ items). persons will be listed on the Entity List
‘‘equipment’’ ‘‘specially designed’’ for the * * *
‘‘production’’ or ‘‘development’’ of
under the destination of Turkey. This
commodities enumerated in ECCNs 9A004.u, List of Items Controlled final rule also removes one entity from
9A515.a, or USML Category XV(a) or XV(e). Related Controls: Technical data directly the Entity List under the destination of
NOTE: ECCN 9B515.a includes equipment, related to articles enumerated in USML India as the result of a request for
cells, and stands ‘‘specially designed’’ for the Category XV are subject to the control of removal received by BIS and a review of
analysis or isolation of faults in commodities USML paragraph XV(f). See also ECCNs information provided in the removal
enumerated in ECCNs 9A004.u or 9A515.a, 3E001, 3E003, 6E001, and 6E002 for request in accordance with the
or USML Category XV(a) or XV(e). specific ‘‘space-qualified’’ items. See procedure for requesting removal or
ECCNs 9E001 and 9E002 for technology for modification of an Entity List entity.
* * * * * the International Space Station, the James
Finally, this rule is also revising five
■ 11. In Supplement No. 1 to Part 774, Webb Space Telescope (JWST) and ‘‘parts,’’
‘‘components,’’ ‘‘accessories,’’ and existing entries in the Entity List, under
Category 9—Aerospace and Propulsion,
‘‘attachments’’ ‘‘specially designed’’ the destinations of Armenia, Greece,
ECCN 9E515 is amended:
■ a. By revising the License therefor. See USML category XV(f) for Pakistan, Russia and the United
Requirements table; controls on technical data and defense Kingdom (U.K.). Four of these entries
services related to launch vehicle are modified to reflect the removal from
■ b. By adding a License Requirement
integration. the Entity List of the entity located in
Note at the end of the License
Requirements section; * * * * * India. The license requirement for the
pmangrum on DSK3GDR082PROD with RULES
■ c. By revising paragraph (1) in the
Items: entry under the destination of Russia is
a. ‘‘Technology’’ ‘‘required’’ for the being revised to conform with a general
Special Conditions for STA section; ‘‘development,’’ ‘‘production,’’ installation,
■ d. By revising the Related Controls license issued by the Department of the
repair (including on-orbit anomaly resolution
paragraph in the List of Items Controlled and analysis beyond established procedures),
Treasury’s Office of Foreign Assets
section; overhaul, or refurbishing of commodities Control on December 20, 2016.
■ e. By revising ‘‘items’’ paragraph a. in controlled by ECCN 9A515 (except DATES: This rule is effective January 10,
the List of Items Controlled section; and 9A515.a.1, .a.2, .a.3, .a.4, .b, .d, .e, or .g), 2017.
VerDate Sep<11>2014 14:51 Jan 09, 2017 Jkt 241001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 E:\FR\FM\10JAR1.SGM 10JAR1](https://thefederalregister.org/doc/82_FR_2881/page/9.svg)
Document Created: 2018-02-01 14:54:11
Document Modified: 2018-02-01 14:54:11
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective on January 15, 2017. | |
| Contact | For questions about the ECCNs included in this rule, contact Dennis Krepp, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, U.S. Department of Commerce, Telephone: 202-482-1309, email: [email protected] For general questions about the regulatory changes pertaining to satellites, spacecraft, and related items, contact the Regulatory Policy Division, Office of Exporter Services, Bureau of Industry and Security, at 202-482-2440 or email: [email protected] | |
| FR Citation | 82 FR 2875 | |
| RIN Number | 0694-AG59 | |
| CFR Citation | 15
CFR
740 15 CFR 742 15 CFR 750 15 CFR 774 | |
| CFR Associated | Administrative Practice and Procedure; Exports; Reporting and Recordkeeping Requirements and Terrorism |
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