82 FR 2889 - International Traffic in Arms Regulations: Revision of U.S. Munitions List Category XV
DEPARTMENT OF STATE Federal Register Volume 82, Issue 6 (January 10, 2017)
Federal Register Volume 82, Issue 6 (January 10, 2017)
| Page Range | 2889-2892 | |
| FR Document | 2016-31751 |
[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)] [Rules and Regulations] [Pages 2889-2892] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31751] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF STATE 22 CFR Part 121 [Public Notice: 9688] RIN 1400-AD33 International Traffic in Arms Regulations: Revision of U.S. Munitions List Category XV AGENCY: Department of State. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: As part of the President's Export Control Reform (ECR) initiative, the Department published an interim final rule on May 13, 2014 that revised Category XV (Spacecraft and Related Articles) of the U.S. Munitions List (USML). After reviewing comments to the interim final rule, the Department of State is amending the International Traffic in Arms Regulations (ITAR) to further revise Category XV of the USML to describe more precisely the articles warranting control in that category. DATES: This final rule is effective on January 15, 2017. FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, Office of Defense Trade Controls Policy, Department of State, telephone: (202) 663-2792; email: DDTCResponseTeam@state.gov. ATTN: Regulatory Change, USML Category XV. SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls (DDTC), U.S. Department of State, administers the International Traffic in Arms Regulations (ITAR) (22 CFR parts 120-130). The items subject to the jurisdiction of the ITAR, i.e., ``defense articles'' and ``defense services,'' are identified on the ITAR's U.S. Munitions List (USML) (22 CFR 121.1). With few exceptions, items not subject to the export control jurisdiction of the ITAR are subject to the jurisdiction of the Export Administration Regulations (``EAR,'' 15 CFR parts 730-774, which includes the Commerce Control List (CCL) in Supplement No. 1 to part 774), administered by the Bureau of Industry and Security (BIS), U.S. Department of Commerce. Both the ITAR and the EAR impose license requirements on exports and reexports. Items not subject to the ITAR or to the exclusive licensing jurisdiction of any other set of regulations are subject to the EAR. All references to the USML in this rule are to the list of defense articles controlled for the purpose of export or temporary import pursuant to the ITAR, and not to the defense articles on the USML that are controlled by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the purpose of permanent import under its regulations. See 27 CFR part 447. Pursuant to section 38(a)(1) of the Arms Export Control Act (AECA), all defense articles controlled for export or import are part of the USML under the AECA. For the sake of clarity, the list of defense articles controlled by ATF for the purpose of permanent import is the U.S. Munitions Import List (USMIL). The transfer of defense articles from the ITAR's USML to the EAR's CCL for the purpose of export control does not affect the list of defense articles controlled on the USMIL under the AECA for the purpose of permanent import. The Department published an interim final rule revising USML Category XV on May 13, 2014 (79 FR 27180) and received 11 public comments on the proposed changes to the ITAR. The interim final rule became effective November 10, 2014, and this final rule is making changes in response to the previously received comments received on the interim final rule. Changes in This Rule Paragraphs (a)(2), (a)(10), (a)(11), (a)(12), (e)(4), (e)(5), (e)(11)(iv), (e)(12), (e)(20), and Note 3 to paragraph (a) and Note 3 to paragraph (f) are amended to better reflect the intended scope of control with regard to autonomous tracking systems, logistics, propulsion systems, cryocoolers and vibration suppression systems. Paragraphs (a)(7)(i) and (e)(2) are amended to clarify the size of the respective aperture dimension of specific electro-optical remote sensing capabilities and space qualified optics. Three commenters stated that the aperture dimensions in paragraph (a)(7)(i) (electro-optical satellite systems) should be raised from 0.35m to at or below 1.1m to reflect the commercial market for satellite imagery and account for technical advances in apertures and ground resolution capabilities. The Department acknowledges this comment and that aperture technology is evolving, and has revised (a)(7)(i) to 0.50m to reflect the current status of technology that provides the United States with a critical military or intelligence advantage and warrants control on the USML. Two commenters stated that (a)(12) should be revised to include a definition of ``spaceflight,'' or an inclusion of the word ``human'' in front of ``spaceflight,'' as well as to clarify that the provision does not control satellites subject to the jurisdiction of the Department of Commerce. The Department disagrees with this comment because the word ``spaceflight'' was removed from paragraph (a) in a November 10, 2014 clean-up rule (79 FR 66608). In addition, the revisions to paragraph (a)(12) herein clarify that the rule does not control satellites subject to the jurisdiction of the Department of Commerce. Two commenters suggested that (c)(4) be amended to better reflect the controls imposed by both the EAR and Missile Technology Control Regime, and to avoid any regulatory confusion caused by the fact that drones and UAVs are already controlled under Category VIII of the ITAR. The Department acknowledges the comments, and proposed removal of paragraph (c) to Category XII (Fire Control, Range Finder, Optical and Guidance and Control Equipment) (see 81 FR 8438, Feb. 18, 2016). All public comments [[Page 2890]] pertaining to (c) will be addressed in that final rule. One commenter stated that the aperture dimensions in paragraph (e)(2) should be raised from 0.35m to 1.1m to reflect the commercial market for satellite imagery. The Department acknowledges this comment and that aperture technology is evolving, and has revised the dimension in (e)(2)(ii) to 0.50m to reflect the current status of technology that provides the United States with a critical military or intelligence advantage and warrants control on the USML. One commenter noted that paragraph (e)(4), which concerns space qualified mechanical cryocoolers, uses the term ``specially designed'' to describe the electronics captured in that provision, but that the words ``specially designed'' are omitted from (e)(5), resulting in certain commercial control electronics being inadvertently caught under the ITAR. The Department agrees with this comment, and has added the words ``specially designed'' to (e)(5). One commenter expressed concern with possible unintended consequences of the interim final rule on space qualified laser radar, or light detection and ranging (LIDAR). Specifically, while the interim final rule clarified that (e)(7) does not control space qualified LIDAR, the commenter expressed concern that it could still be caught by paragraph (e)(3). The Department clarifies that paragraph (e)(3) could not inadvertently catch space qualified LIDAR, because note 2 to paragraph (e) makes clear that when the articles described in Category XV(e) are ``integrated into and included as an integral part'' of an item subject to the EAR, they are subject to the EAR. A space qualified focal plane array by itself would be caught by (e)(3), but once integrated and integral to an item subject to the EAR, such as an EAR- controlled space qualified LIDAR, the space qualified focal plane array would be subject to the EAR. One commenter stated that Note 3 to paragraph (f) should be amended to clarify that ``housekeeping'' data from spacecraft are not subject to the ITAR or EAR, and that the ITAR should be updated to reflect the language of Note 2 to Product Group E, Category 9 of the Commerce Control List (CCL). The Department accepts this comment and aligns note 3 to paragraph (f) with the corresponding Note 2 published in Product Group E, Category 9 of the CCL for the purpose of consistency between the USML and CCL. Two commenters asserted that ITAR Sec. 124.15 imposes ``special export controls'' over and above the standard licensing controls without a corresponding national security consideration, and the provisions should be amended to reflect that the additional scrutiny imposed would only be used in limited and particular circumstances. In addition, the commenters stated that the Departments of State and Commerce should jointly revise the regulatory requirements to remove the de facto pre-licensing requirement for satellite exports subject to the EAR intended for launch in NATO and major non-NATO allied countries. The Department does not accept these comments as Sec. 124.15 only applies to satellites and related items controlled by Category XV of the USML. These controls do not apply to the EAR, which has its own analogous form of controls. Additional Changes The Department also makes a number of other revisions to Category XV to limit the controls to those items that provide a critical military or intelligence advantage to the United States and warrant controls on the USML, which are detailed below. This final rule amends paragraph (a)(2) to clarify that the control applies to spacecraft that perform real-time autonomous detection and tracking of moving objects, other than celestial bodies. The control does not include systems that can track fixed points to determine their own movement based on the relative position of the fixed points over time. This final rule amends paragraphs (a)(10) and (11) to clarify the nature of the technology and defense articles controlled. Paragraph (a)(10) is revised to control spacecraft that autonomously perform collision avoidance. Paragraph (a)(11) is revised to control sub- orbital craft that incorporate a propulsion system described in either paragraph (e) or Category IV(d)(1)-(6), and are specially designed for atmospheric entry or re-entry. The Department also makes a corresponding change to paragraph (e)(20) to reflect the forms of propulsion controlled in paragraph (a)(11). The Department also removes the Note 3 paragraph (a) regarding attitude control. A new Note 3 to paragraph (a) is added to remove the James Webb Space Telescope from the jurisdiction of the USML and transfer its control to the EAR. A new sentence is also to Note 2 to paragraph (e)(17) removing the primary and secondary payloads of the James Webb Space Telescope from the jurisdiction of the USML and transferring their control to the EAR. Any parts and components of the James Webb Space Telescope that are controlled in other entries of paragraph (e) remain on the USML, except as described in Note 2 to paragraph (e). This final rule amends paragraphs (e)(4) and (e)(5) to clarify the type of systems controlled. Specifically, the word ``systems'' is added to both provisions to make it clear that the provisions are designed to control ``cold finger systems'' in (e)(4) and ``vibration suppression systems'' and ``active dampening systems'' in (e)(5). This final rule amends paragraphs (e)(11)(iv) and (e)(12) to clarify the type of propulsions systems controlled. Paragraph (e)(11)(iv) is revised to control electric propulsion systems, such as plasma and ion based systems, that provide greater than 300 milli- Newtons of thrust and a specific impulse greater than 1,500 sec; or that operate at an input power of more than 15kW. Paragraph (e)(12) is revised to control bi-propellants or mono-propellant rocket engines with which provide greater than 150 lbf (i.e., 667.23 N) vacuum thrust. Regulatory Analysis and Notices Administrative Procedure Act The import and export of defense articles and services is a foreign affairs function of the United States government and that rules implementing this function are exempt from Sec. Sec. 553 (rulemaking) and 554 (adjudications) of the Administrative Procedure Act (APA). Although this rule is exempt from the rulemaking provisions of the APA and without prejudice to the Department's determination that controlling the import and export of defense services is a foreign affairs function, the Department allowed a 45-day public comment period for the interim final rule. The Department has made additional refinements to what was proposed based on the public comments received, which helps to further the objectives described in the interim final rule that is published as a final rule today. This final rule will be effective on January 15, 2017. Regulatory Flexibility Act Since this final rule is exempt from the provisions of 5 U.S.C. 553, there is no requirement for an analysis under the Regulatory Flexibility Act. Unfunded Mandates Reform Act of 1995 This rulemaking does not involve a mandate that will result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year and it will not significantly or uniquely affect small governments. [[Page 2891]] Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. Small Business Regulatory Enforcement Fairness Act of 1996 This rulemaking is not a major rule as defined in 5 U.S.C. 804. Executive Orders 12372 and 13132 This rulemaking will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with Executive Order 13132, it is determined that this rulemaking does not have sufficient federalism implications to require consultations or warrant the preparation of a federalism summary impact statement. The regulations implementing Executive Order 12372 regarding intergovernmental consultation on Federal programs and activities do not apply to this rulemaking. Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributed impacts, and equity). These executive orders stress the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rulemaking has been designated a ``significant regulatory action,'' under Executive Order 12866. Accordingly, this rule has been reviewed by the Office of Management and Budget (OMB). Executive Order 12988 The Department of State reviewed this rulemaking in light of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden. Executive Order 13175 The Department of State determined that this rulemaking will not have tribal implications, will not impose substantial direct compliance costs on Indian tribal governments, and will not preempt tribal law. Accordingly, the requirements of Executive Order 13175 do not apply to this rulemaking. Paperwork Reduction Act This rule does not impose any new reporting or recordkeeping requirements subject the Paperwork Reduction Act 44 U.S.C. Chapter 35. List of Subjects in 22 CFR Part 121 Arms and munitions, Classified information, Exports,Technical assistance. Accordingly, for the reasons set forth above, title 22, chapter I, subchapter M, part 121 is amended as follows: PART 121--THE UNITED STATES MUNITIONS LIST 0 1. The authority citation for part 121 continues to read as follows: Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; Pub. L. 105-261, 112 Stat. 1920; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129. 0 2. In Sec. 121.1, under Category XV: 0 a. Revise paragraphs (a)(2), (a)(7)(i), and (a)(10) through (12). 0 b. Add Note to paragraph (a)(12). 0 c. Revise Note 3 to paragraph (a). 0 d. Revise paragraphs (e)(2), (4), and (5), (e)(11)(iv), and (e)(12). 0 e. Revise Note 2 to paragraph (e)(17). 0 f. Revise paragraph (e)(20). 0 g. Revise Note 3 to paragraph (f). The revisions and addition read as follows: Sec. 121.1 The United States Munitions List. * * * * * Category XV--Spacecraft and Related Articles (a) * * * * (2) Autonomously detect and track moving ground, airborne, missile, or space objects other than celestial bodies, in real-time using imaging, infrared, radar, or laser systems; * * * * * (7) * * * (i) Electro-optical visible and near infrared (VNIR) (i.e., 400nm to 1,000nm) or infrared (i.e., greater than 1,000nm to 30,000nm) with less than 40 spectral bands and having a clear aperture greater than 0.50m; * * * * * (10) Autonomously perform collision avoidance; (11) Are sub-orbital, incorporate propulsion systems described in paragraph (e) of this category or Category IV(d)(1)-(6) of this section, and are specially designed for atmospheric entry or re-entry; (12) Are specially designed to provide inspection or surveillance of another spacecraft, or service another spacecraft via grappling or docking; or Note to paragraph (a)(12): This paragraph does not control spacecraft that dock exclusively via the NASA Docking System (NDS), which are controlled by ECCN 9A515.a.4. * * * * * Note 3 to paragraph (a): This paragraph does not control the James Webb Space Telescope, which is subject to the EAR. * * * * * (e) * * * (2) Space-qualified optics (i.e., lens, mirror or membrane) having one of the following: (i) Active properties (e.g., adaptive, deformable) with a largest lateral clear aperture dimension greater than 0.35m; or (ii) A largest lateral clear aperture dimension greater than 0.50m; * * * * * (4) Space-qualified mechanical (i.e., active) cryocooler or active cold finger systems, and associated control electronics specially designed therefor; (5) Space-qualified active vibration suppression systems, including active isolation and active dampening systems, and associated control electronics specially designed therefor; * * * * * (11) * * * (iv) Electric (Plasma/Ion) propulsion systems that provide a thrust greater than 300 milli-Newtons and a specific impulse greater than 1,500 sec; or that operate at an input power of more than 15kW; (12) Thrusters (e.g., spacecraft or rocket engines) using bi- propellants or mono-propellant that provide greater than 150 lbf (i.e., 667.23 N) vacuum thrust (MT for rocket motors or engines having a total impulse capacity equal to or greater than 8.41 x 10[caret]5 newton seconds); * * * * * Note 2 to paragraph (e)(17): An ECCN 9A004 or ECCN 9A515.a spacecraft remains a spacecraft subject to the EAR even when incorporating a hosted payload performing a function described in paragraph (a) of this category. All spacecraft that incorporate primary or secondary payloads that perform a function described in paragraph (a) of this category are controlled by that paragraph. This paragraph does not control primary or secondary payloads of the James Webb Space Telescope, which are subject to the EAR. * * * * * (20) Equipment modules, stages, or compartments that incorporate propulsion systems described in paragraph (e) of this category or Category IV(d)(1)-(6) of this section, and can be separated or jettisoned from another spacecraft; or * * * * * [[Page 2892]] Note 3 to paragraph (f): Paragraph (f) and ECCNs 9E001, 9E002 and 9E515 do not control the data transmitted to or from a satellite or spacecraft, whether real or simulated, when limited to information about the health, operational status, or measurements or function of, or raw sensor output from, the spacecraft, spacecraft payload(s), or its associated subsystems or components. Such information is not within the scope of information captured within the definition of technology in the EAR for purposes of Category 9 Product Group E. Examples of such information, which are commonly referred to as ``housekeeping data,'' include (i) system, hardware, component configuration, and operation status information pertaining to temperatures, pressures, power, currents, voltages, and battery charges; (ii) spacecraft or payload orientation or position information, such as state vector or ephemeris information; (iii) payload raw mission or science output, such as images, spectra, particle measurements, or field measurements; (iv) command responses; (v) accurate timing information; and (vi) link budget data. The act of processing such telemetry data--i.e., converting raw data into engineering units or readable products--or encrypting it does not, in and of itself, cause the telemetry data to become subject to the ITAR or to ECCN 9E515 for purposes of 9A515, or to ECCNs 9E001 or 9E002 for purposes of 9A004. All classified technical data directly related to items controlled in USML Category XV or ECCNs 9A515, and defense services using the classified technical data, remains subject to the ITAR. This note does not affect controls in USML XV(f), ECCN 9D515, or ECCN 9E515 on software source code or commands that control a spacecraft, payload, or associated subsystems for purposes of 9A515. This note also does not affect controls in ECCNs 9D001, 9D002, 9E001, or 9E002 on software source code or commands that control a spacecraft, payload, or associated subsystems for purposes of 9A004. * * * * * Dated: December 22, 2016. Tom Countryman, Acting Under Secretary, Arms Control and International Security, Department of State. [FR Doc. 2016-31751 Filed 1-9-17; 8:45 am] BILLING CODE 4710-25-P
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Dated: December 28, 2016. are subject to the jurisdiction of the systems, cryocoolers and vibration
Alexander K. Lopes, Jr., Export Administration Regulations suppression systems. Paragraphs
Acting Assistant Secretary for Export (‘‘EAR,’’ 15 CFR parts 730–774, which (a)(7)(i) and (e)(2) are amended to clarify
Administration. includes the Commerce Control List the size of the respective aperture
[FR Doc. 2016–31833 Filed 1–9–17; 8:45 am] (CCL) in Supplement No. 1 to part 774), dimension of specific electro-optical
BILLING CODE 3510–33–P administered by the Bureau of Industry remote sensing capabilities and space
and Security (BIS), U.S. Department of qualified optics.
Commerce. Both the ITAR and the EAR Three commenters stated that the
DEPARTMENT OF STATE impose license requirements on exports aperture dimensions in paragraph
and reexports. Items not subject to the (a)(7)(i) (electro-optical satellite
22 CFR Part 121 ITAR or to the exclusive licensing systems) should be raised from 0.35m to
jurisdiction of any other set of at or below 1.1m to reflect the
[Public Notice: 9688]
regulations are subject to the EAR. commercial market for satellite imagery
RIN 1400–AD33 All references to the USML in this and account for technical advances in
rule are to the list of defense articles apertures and ground resolution
International Traffic in Arms controlled for the purpose of export or capabilities. The Department
Regulations: Revision of U.S. temporary import pursuant to the ITAR, acknowledges this comment and that
Munitions List Category XV and not to the defense articles on the aperture technology is evolving, and has
AGENCY: Department of State. USML that are controlled by the Bureau revised (a)(7)(i) to 0.50m to reflect the
of Alcohol, Tobacco, Firearms and current status of technology that
ACTION: Final rule. Explosives (ATF) for the purpose of provides the United States with a
SUMMARY: As part of the President’s permanent import under its regulations. critical military or intelligence
Export Control Reform (ECR) initiative, See 27 CFR part 447. Pursuant to section advantage and warrants control on the
the Department published an interim 38(a)(1) of the Arms Export Control Act USML.
final rule on May 13, 2014 that revised (AECA), all defense articles controlled
for export or import are part of the Two commenters stated that (a)(12)
Category XV (Spacecraft and Related should be revised to include a definition
Articles) of the U.S. Munitions List USML under the AECA. For the sake of
clarity, the list of defense articles of ‘‘spaceflight,’’ or an inclusion of the
(USML). After reviewing comments to word ‘‘human’’ in front of ‘‘spaceflight,’’
the interim final rule, the Department of controlled by ATF for the purpose of
permanent import is the U.S. Munitions as well as to clarify that the provision
State is amending the International does not control satellites subject to the
Traffic in Arms Regulations (ITAR) to Import List (USMIL). The transfer of
defense articles from the ITAR’s USML jurisdiction of the Department of
further revise Category XV of the USML Commerce. The Department disagrees
to describe more precisely the articles to the EAR’s CCL for the purpose of
export control does not affect the list of with this comment because the word
warranting control in that category. ‘‘spaceflight’’ was removed from
defense articles controlled on the
DATES: This final rule is effective on paragraph (a) in a November 10, 2014
USMIL under the AECA for the purpose
January 15, 2017. clean-up rule (79 FR 66608). In
of permanent import.
FOR FURTHER INFORMATION CONTACT: Mr. The Department published an interim addition, the revisions to paragraph
C. Edward Peartree, Director, Office of final rule revising USML Category XV (a)(12) herein clarify that the rule does
Defense Trade Controls Policy, on May 13, 2014 (79 FR 27180) and not control satellites subject to the
Department of State, telephone: (202) received 11 public comments on the jurisdiction of the Department of
663–2792; email: DDTCResponseTeam@ proposed changes to the ITAR. The Commerce.
state.gov. ATTN: Regulatory Change, interim final rule became effective Two commenters suggested that (c)(4)
USML Category XV. November 10, 2014, and this final rule be amended to better reflect the controls
SUPPLEMENTARY INFORMATION: The is making changes in response to the imposed by both the EAR and Missile
Directorate of Defense Trade Controls previously received comments received Technology Control Regime, and to
(DDTC), U.S. Department of State, on the interim final rule. avoid any regulatory confusion caused
administers the International Traffic in by the fact that drones and UAVs are
Arms Regulations (ITAR) (22 CFR parts Changes in This Rule already controlled under Category VIII
pmangrum on DSK3GDR082PROD with RULES
120–130). The items subject to the Paragraphs (a)(2), (a)(10), (a)(11), of the ITAR. The Department
jurisdiction of the ITAR, i.e., ‘‘defense (a)(12), (e)(4), (e)(5), (e)(11)(iv), (e)(12), acknowledges the comments, and
articles’’ and ‘‘defense services,’’ are (e)(20), and Note 3 to paragraph (a) and proposed removal of paragraph (c) to
identified on the ITAR’s U.S. Munitions Note 3 to paragraph (f) are amended to Category XII (Fire Control, Range
List (USML) (22 CFR 121.1). With few better reflect the intended scope of Finder, Optical and Guidance and
exceptions, items not subject to the control with regard to autonomous Control Equipment) (see 81 FR 8438,
export control jurisdiction of the ITAR tracking systems, logistics, propulsion Feb. 18, 2016). All public comments
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![2892 Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Rules and Regulations
Note 3 to paragraph (f): Paragraph (f) and ACTION: Notification of civil monetary 114–74, section 701, 129 Stat. 584,
ECCNs 9E001, 9E002 and 9E515 do not penalty adjustment. enacted on November 2, 2015. The
control the data transmitted to or from a Improvements Act of 2015 changed the
satellite or spacecraft, whether real or SUMMARY: This document informs the method agencies use to calculate
simulated, when limited to information about public that the maximum penalty for
the health, operational status, or inflation adjustments to civil monetary
violations of the Alcoholic Beverage penalties, as well as the method and
measurements or function of, or raw sensor
Labeling Act (ABLA) is being adjusted frequency of future adjustments. The
output from, the spacecraft, spacecraft
payload(s), or its associated subsystems or in accordance with the Federal Civil Improvements Act of 2015 also
components. Such information is not within Penalties Inflation Adjustment Act of instructed agencies to apply its method
the scope of information captured within the 1990, as amended. Prior to the of calculating the inflation adjustment
definition of technology in the EAR for publication of this document, any to the original statutory penalty, rather
purposes of Category 9 Product Group E. person who violated the provisions of than to penalties as they were adjusted
Examples of such information, which are the ABLA was subject to a civil penalty
commonly referred to as ‘‘housekeeping
under the Improvement Act of 1996. To
of not more than $19,787, with each day account for inflation that took place
data,’’ include (i) system, hardware, constituting a separate offense. This
component configuration, and operation between the enactment of the original
status information pertaining to
document announces that this penalties and the enactment of the
temperatures, pressures, power, currents, maximum penalty is being increased to Improvements Act of 2015, agencies
voltages, and battery charges; (ii) spacecraft $20,111. must make a ‘‘catch-up’’ first adjustment
or payload orientation or position DATES: The new maximum civil penalty through an interim final rulemaking that
information, such as state vector or for violations of the ABLA takes effect is published no later than July 1, 2016,
ephemeris information; (iii) payload raw on January 10, 2017 and applies to and takes effect no later than August 1,
mission or science output, such as images, penalties that are assessed after that
spectra, particle measurements, or field 2016. Agencies shall adjust civil
measurements; (iv) command responses; (v)
date. monetary penalties by the inflation
accurate timing information; and (vi) link FOR FURTHER INFORMATION CONTACT: adjustment described in section 5 of the
budget data. The act of processing such Andrew L. Malone, Public Guidance Inflation Adjustment Act no later than
telemetry data—i.e., converting raw data into Program Manager, Regulations and January 15 of every year thereafter. The
engineering units or readable products—or Rulings Division, Alcohol and Tobacco Improvements Act of 2015 also provides
encrypting it does not, in and of itself, cause that any increase in a civil monetary
Tax and Trade Bureau, 1310 G Street
the telemetry data to become subject to the penalty shall apply only to civil
ITAR or to ECCN 9E515 for purposes of NW., Box 12, Washington, DC 20005;
(202) 453–1039, ext. 188. monetary penalties, including those
9A515, or to ECCNs 9E001 or 9E002 for
purposes of 9A004. All classified technical SUPPLEMENTARY INFORMATION:
whose associated violation predated
data directly related to items controlled in such an increase, which are assessed
USML Category XV or ECCNs 9A515, and Background after the date the increase takes effect.
defense services using the classified Statutory Authority for Federal Civil As amended, the Inflation Adjustment
technical data, remains subject to the ITAR. Act provides that the inflation
Monetary Penalty Inflation Adjustments
This note does not affect controls in USML adjustment does not apply to civil
XV(f), ECCN 9D515, or ECCN 9E515 on The Federal Civil Penalties Inflation monetary penalties under the Internal
software source code or commands that Adjustment Act of 1990 (the Inflation Revenue Code of 1986 or the Tariff Act
control a spacecraft, payload, or associated Adjustment Act), Public Law 101–410, of 1930.
subsystems for purposes of 9A515. This note 104 Stat. 890, 28 U.S.C. 2461 note,
also does not affect controls in ECCNs 9D001, requires the regular adjustment and Alcoholic Beverage Labeling Act
9D002, 9E001, or 9E002 on software source
code or commands that control a spacecraft, evaluation of civil monetary penalties to The Alcohol and Tobacco Tax and
payload, or associated subsystems for maintain their deterrent effect and helps Trade Bureau (TTB) administers the
purposes of 9A004. to ensure that penalty amounts imposed Federal Alcohol Administration Act
by the Federal Government are properly (FAA Act) pursuant to section 1111(d)
* * * * * accounted for and collected. A ‘‘civil of the Homeland Security Act of 2002,
Dated: December 22, 2016. monetary penalty’’ is defined in the codified at 6 U.S.C. 531(d). The
Tom Countryman, Inflation Adjustment Act as any penalty, Secretary has delegated various
Acting Under Secretary, Arms Control and fine, or other such sanction that is: (1) authorities through Treasury
International Security, Department of State. For a specific monetary amount as Department Order 120–01, dated
[FR Doc. 2016–31751 Filed 1–9–17; 8:45 am] provided by Federal law, or has a December 10, 2013, (superseding
BILLING CODE 4710–25–P
maximum amount provided for by Treasury Department Order 120–01,
Federal law; (2) assessed or enforced by dated January 24, 2003), to the TTB
an agency pursuant to Federal law; and Administrator to perform the functions
(3) assessed or enforced pursuant to an and duties in the administration and
DEPARTMENT OF THE TREASURY
administrative proceeding or a civil enforcement of this law.
Alcohol and Tobacco Tax and Trade action in the Federal courts. The FAA Act contains the Alcoholic
Bureau The Debt Collection Improvement Act Beverage Labeling Act (ABLA) of 1988,
of 1996 (the Improvement Act of 1996), Public Law 100–690, 27 U.S.C. 213–
27 CFR Part 16 Public Law 104–134, section 31001(s), 219a, which was enacted on November
110 Stat. 1321, enacted on April 26, 18, 1988. Section 204 of the ABLA,
[Docket No. TTB–2017–0001; Notice No. 1996, amended the Inflation Adjustment codified in 27 U.S.C. 215, requires that
pmangrum on DSK3GDR082PROD with RULES
170] Act by requiring civil monetary a health warning statement appear on
penalties to be adjusted for inflation. the labels of all containers of alcoholic
Civil Monetary Penalty Inflation
The Inflation Adjustment Act was beverages manufactured, imported, or
Adjustment—Alcoholic Beverage
further amended by the Federal Civil bottled for sale or distribution in the
Labeling Act
Penalties Inflation Adjustment Act United States, as well as on containers
AGENCY: Alcohol and Tobacco Tax and Improvements Act of 2015 (the of alcoholic beverages that are
Trade Bureau, Treasury. Improvements Act of 2015), Public Law manufactured, imported, bottled, or
VerDate Sep<11>2014 14:51 Jan 09, 2017 Jkt 241001 PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 E:\FR\FM\10JAR1.SGM 10JAR1](https://thefederalregister.org/doc/82_FR_2895/page/4.svg)
Document Created: 2018-02-01 14:54:17
Document Modified: 2018-02-01 14:54:17
| 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 final rule is effective on January 15, 2017. | |
| Contact | Mr. C. Edward Peartree, Director, Office of Defense Trade Controls Policy, Department of State, telephone: (202) 663-2792; email: [email protected] ATTN: Regulatory Change, USML Category XV. | |
| FR Citation | 82 FR 2889 | |
| RIN Number | 1400-AD33 | |
| CFR Associated | Arms and Munitions; Classified Information; Exports and Technical Assistance |
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