83_FR_58424 83 FR 58201 - Review of Controls for Certain Emerging Technologies

83 FR 58201 - Review of Controls for Certain Emerging Technologies

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 223 (November 19, 2018)

Page Range58201-58202
FR Document2018-25221

The Bureau of Industry and Security (BIS) controls the export of dual-use and less sensitive military items through the Export Administration Regulations (EAR), including the Commerce Control List (CCL). As controls on exports of technology are a key component of the effort to protect sensitive U.S. technology, many sensitive technologies are listed on the CCL, often consistent with the lists maintained by the multilateral export control regimes of which the United States is a member. Certain technologies, however, may not yet be listed on the CCL or controlled multilaterally because they are emerging technologies. As such, they have not yet been evaluated for their national security impacts. This advance notice of proposed rulemaking (ANPRM) seeks public comment on criteria for identifying emerging technologies that are essential to U.S. national security, for example because they have potential conventional weapons, intelligence collection, weapons of mass destruction, or terrorist applications or could provide the United States with a qualitative military or intelligence advantage. Comment on this ANPRM will help inform the interagency process to identify and describe such emerging technologies. This interagency process is anticipated to result in proposed rules for new Export Control Classification Numbers (ECCNs) on the CCL.

Federal Register, Volume 83 Issue 223 (Monday, November 19, 2018) 
[Federal Register Volume 83, Number 223 (Monday, November 19, 2018)]
[Proposed Rules]
[Pages 58201-58202]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25221]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 180712626-8840-01]
 RIN 0694-AH61


Review of Controls for Certain Emerging Technologies

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Advance notice of proposed rulemaking (ANPRM).

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SUMMARY: The Bureau of Industry and Security (BIS) controls the export 
of dual-use and less sensitive military items through the Export 
Administration Regulations (EAR), including the Commerce Control List 
(CCL). As controls on exports of technology are a key component of the 
effort to protect sensitive U.S. technology, many sensitive 
technologies are listed on the CCL, often consistent with the lists 
maintained by the multilateral export control regimes of which the 
United States is a member. Certain technologies, however, may not yet 
be listed on the CCL or controlled multilaterally because they are 
emerging technologies. As such, they have not yet been evaluated for 
their national security impacts. This advance notice of proposed 
rulemaking (ANPRM) seeks public comment on criteria for identifying 
emerging technologies that are essential to U.S. national security, for 
example because they have potential conventional weapons, intelligence 
collection, weapons of mass destruction, or terrorist applications or 
could provide the United States with a qualitative military or 
intelligence advantage. Comment on this ANPRM will help inform the 
interagency process to identify and describe such emerging 
technologies. This interagency process is anticipated to result in 
proposed rules for new Export Control Classification Numbers (ECCNs) on 
the CCL.

DATES: Submit comments on or before December 19, 2018.

ADDRESSES: You may submit comments through either of the following:
     Federal eRulemaking Portal: http://www.regulations.gov. 
The identification number for this rulemaking is BIS 2018-0024.
     Address: By mail or delivery to Regulatory Policy 
Division, Bureau of Industry and Security, U.S. Department of Commerce, 
Room 2099B, 14th Street and Pennsylvania Avenue NW, Washington, DC 
20230. Refer to RIN 0694-AH61.

FOR FURTHER INFORMATION CONTACT: Kirsten Mortimer, Office of National 
Security and Technology Transfer Controls, Bureau of Industry and 
Security, Department of Commerce. Phone: (202) 482-0092; Fax (202) 482-
3355; Email: Kirsten.Mortimer@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    As part of the National Defense Authorization Act (NDAA) for Fiscal 
Year 2019, Public Law No: 115-232, Congress enacted the Export Control 
Reform Act of 2018 (the Act or ECRA). Section 1758 of the Act 
authorizes Commerce to establish appropriate controls, including 
interim controls, on the export, reexport, or transfer (in country) of 
emerging and foundational technologies. Under the Act, emerging and 
foundational technologies are those essential to the national security 
of the United States and are not described in Section 721(a)(6)(A)(i)-
(v) of the Defense Production Act of 1950, as amended. Emerging and 
foundational technologies, in keeping with ECRA, will be determined by 
an interagency process that will consider both public and classified 
information as well as information from the Emerging Technology 
Technical Advisory Committee and the Committee on Foreign Investment in 
the United States.
    In identifying emerging and foundational technologies, the process 
must consider:
     The development of emerging and foundational technologies 
in foreign countries;
     The effect export controls may have on the development of 
such technologies in the United States; and
     The effectiveness of export controls on limiting the 
proliferation of emerging and foundational technologies in foreign 
countries.
    To help inform this process, this advance notice of proposed 
rulemaking (ANPRM) proposes several general areas for public comment. 
Given the challenges involved in identifying emerging and foundational 
technologies, this ANPRM will help Commerce and other agencies propose 
specific emerging technologies for control.
    Once an emerging or foundational technology has been identified, 
the Act authorizes Commerce to establish controls, including interim 
controls, on the export, reexport, or transfer (in-country) of that 
technology. In determining the appropriate level of export controls, 
the Department must consider the potential end-uses and end-users of 
the technology, and countries to which exports from the United States 
are restricted (e.g., embargoed countries). While Commerce has 
discretion to set the level of export controls, at a minimum it must 
require a license for the export of emerging and foundational 
technologies to countries subject to a U.S. embargo, including those 
subject to an arms embargo. Responses to this ANPRM will help Commerce 
and other agencies identify and assess emerging technologies for the 
purposes of updating the export control lists without impairing 
national security or hampering the ability of the U.S. commercial 
sector to keep pace with international advances in emerging fields.

Emerging Technologies

    To assist BIS in identifying emerging technologies that are 
essential to the national security of the United States, this ANPRM 
seeks public comment on criteria for defining and identifying emerging 
technologies. This ANPRM describes certain categories of technology 
that are currently subject to the EAR but controlled only to embargoed 
countries, countries designated as supporters of international 
terrorism, and restricted end uses or end users. These categories are a 
representative list of the

[[Page 58202]]

technology categories from which Commerce, through an interagency 
process, seeks to determine whether there are specific emerging 
technologies that are important to the national security of the United 
States for which effective controls can be implemented that avoid 
negatively impacting U.S. leadership in the science, technology, 
engineering, and manufacturing sectors.
    Commerce does not seek to expand jurisdiction over technologies 
that are not currently subject to the EAR, such as ``fundamental 
research'' described in Sec.  734.8 of the EAR. For purposes of this 
ANPRM, Commerce does not seek to alter existing controls on technology 
already specifically described in the CCL. Such controls would 
generally continue to be addressed through multilateral regimes or 
interagency reviews.

Foundational Technology

    Commerce will issue a separate ANPRM regarding identification of 
foundational technologies that may be important to U.S. national 
security. Commerce seeks public comment, however, on treating emerging 
and foundational technologies as separate types of technology.

Representative Technology Categories

    The representative general categories of technology for which 
Commerce currently seeks to determine whether there are specific 
emerging technologies that are essential to the national security of 
the United States include:
    (1) Biotechnology, such as:
    (i) Nanobiology;
    (ii) Synthetic biology;
    (iv) Genomic and genetic engineering; or
    (v) Neurotech.
    (2) Artificial intelligence (AI) and machine learning technology, 
such as:
    (i) Neural networks and deep learning (e.g., brain modelling, time 
series prediction, classification);
    (ii) Evolution and genetic computation (e.g., genetic algorithms, 
genetic programming);
    (iii) Reinforcement learning;
    (iv) Computer vision (e.g., object recognition, image 
understanding);
    (v) Expert systems (e.g., decision support systems, teaching 
systems);
    (vi) Speech and audio processing (e.g., speech recognition and 
production);
    (vii) Natural language processing (e.g., machine translation);
    (viii) Planning (e.g., scheduling, game playing);
    (ix) Audio and video manipulation technologies (e.g., voice 
cloning, deepfakes);
    (x) AI cloud technologies; or
    (xi) AI chipsets.
    (3) Position, Navigation, and Timing (PNT) technology.
    (4) Microprocessor technology, such as:
    (i) Systems-on-Chip (SoC); or
    (ii) Stacked Memory on Chip.
    (5) Advanced computing technology, such as:
    (i) Memory-centric logic.
    (6) Data analytics technology, such as:
    (i) Visualization;
    (ii) Automated analysis algorithms; or
    (iii) Context-aware computing.
    (7) Quantum information and sensing technology, such as
    (i) Quantum computing;
    (ii) Quantum encryption; or
    (iii) Quantum sensing.
    (8) Logistics technology, such as:
    (i) Mobile electric power;
    (ii) Modeling and simulation;
    (iii) Total asset visibility; or
    (iv) Distribution-based Logistics Systems (DBLS).
    (9) Additive manufacturing (e.g., 3D printing);
    (10) Robotics such as:
    (i) Micro-drone and micro-robotic systems;
    (ii) Swarming technology;
    (iii) Self-assembling robots;
    (iv) Molecular robotics;
    (v) Robot compliers; or
    (vi) Smart Dust.
    (11) Brain-computer interfaces, such as
    (i) Neural-controlled interfaces;
    (ii) Mind-machine interfaces;
    (iii) Direct neural interfaces; or
    (iv) Brain-machine interfaces.
    (12) Hypersonics, such as:
    (i) Flight control algorithms;
    (ii) Propulsion technologies;
    (iii) Thermal protection systems; or
    (iv) Specialized materials (for structures, sensors, etc.).
    (13) Advanced Materials, such as:
    (i) Adaptive camouflage;
    (ii) Functional textiles (e.g., advanced fiber and fabric 
technology); or
    (iii) Biomaterials.
    (14) Advanced surveillance technologies, such as:
    Faceprint and voiceprint technologies.
    BIS welcomes comments on: (1) How to define emerging technology to 
assist identification of such technology in the future; (2) criteria to 
apply to determine whether there are specific technologies within these 
general categories that are important to U.S. national security; (3) 
sources to identify such technologies; (4) other general technology 
categories that warrant review to identify emerging technology that are 
important to U.S. national security; (5) the status of development of 
these technologies in the United States and other countries; (6) the 
impact specific emerging technology controls would have on U.S. 
technological leadership; (7) any other approaches to the issue of 
identifying emerging technologies important to U.S. national security, 
including the stage of development or maturity level of an emerging 
technology that would warrant consideration for export control.
    Comments should be submitted to BIS as described in the ADDRESSES 
section of this ANPRM by December 19, 2018.
    This rule was determined to be significant by the Office of 
Management Budget under Executive Order 12866.

    Dated: November 14, 2018.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2018-25221 Filed 11-16-18; 8:45 am]
 BILLING CODE 3510-33-P

Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules 58201 Information may be emailed to: ANE-AD- security impacts. This advance notice of Committee and the Committee on AMOC@faa.gov. proposed rulemaking (ANPRM) seeks Foreign Investment in the United States. (2) Before using any approved AMOC, public comment on criteria for In identifying emerging and notify your appropriate principal inspector, identifying emerging technologies that foundational technologies, the process or lacking a principal inspector, the manager must consider: of the local flight standards district office/ are essential to U.S. national security, for example because they have potential • The development of emerging and certificate holding district office. conventional weapons, intelligence foundational technologies in foreign (j) Related Information collection, weapons of mass destruction, countries; (1) For more information about this AD, or terrorist applications or could • The effect export controls may have contact Scott Hopper, Aerospace Engineer, provide the United States with a on the development of such ECO Branch, FAA, Engine and Propeller qualitative military or intelligence technologies in the United States; and Standards Branch, 1200 District Avenue, advantage. Comment on this ANPRM • The effectiveness of export controls Burlington, MA 01803; phone: 781–238– on limiting the proliferation of emerging 7154; fax: 781–238–7199; email: will help inform the interagency process to identify and describe such emerging and foundational technologies in foreign scott.hopper@faa.gov. countries. (2) For PW service information identified technologies. This interagency process To help inform this process, this in this AD, contact Pratt & Whitney, 400 is anticipated to result in proposed rules advance notice of proposed rulemaking Main St., East Hartford, CT 06108; phone: for new Export Control Classification 860–565–8770; fax: 860–565–4503. You may (ANPRM) proposes several general areas Numbers (ECCNs) on the CCL. view this service information at the FAA, for public comment. Given the DATES: Submit comments on or before challenges involved in identifying Engine and Propeller Standards Branch, 1200 District Avenue, Burlington, MA 01803. For December 19, 2018. emerging and foundational information on the availability of this ADDRESSES: You may submit comments technologies, this ANPRM will help material at the FAA, call 781–238–7759. through either of the following: Commerce and other agencies propose Issued in Burlington, Massachusetts, on • Federal eRulemaking Portal: http:// specific emerging technologies for November 9, 2018. www.regulations.gov. The identification control. Karen M. Grant, number for this rulemaking is BIS 2018– Once an emerging or foundational Acting Manager, Engine and Propeller 0024. technology has been identified, the Act Standards Branch, Aircraft Certification • Address: By mail or delivery to authorizes Commerce to establish Service. Regulatory Policy Division, Bureau of controls, including interim controls, on [FR Doc. 2018–24944 Filed 11–16–18; 8:45 am] Industry and Security, U.S. Department the export, reexport, or transfer (in- BILLING CODE 4910–13–P of Commerce, Room 2099B, 14th Street country) of that technology. In and Pennsylvania Avenue NW, determining the appropriate level of Washington, DC 20230. Refer to RIN export controls, the Department must 0694–AH61. consider the potential end-uses and DEPARTMENT OF COMMERCE end-users of the technology, and FOR FURTHER INFORMATION CONTACT: Bureau of Industry and Security Kirsten Mortimer, Office of National countries to which exports from the Security and Technology Transfer United States are restricted (e.g., 15 CFR Part 744 Controls, Bureau of Industry and embargoed countries). While Commerce Security, Department of Commerce. has discretion to set the level of export [Docket No. 180712626–8840–01] Phone: (202) 482–0092; Fax (202) 482– controls, at a minimum it must require 3355; Email: Kirsten.Mortimer@ a license for the export of emerging and RIN 0694–AH61 bis.doc.gov. foundational technologies to countries Review of Controls for Certain subject to a U.S. embargo, including SUPPLEMENTARY INFORMATION: those subject to an arms embargo. Emerging Technologies Background Responses to this ANPRM will help AGENCY: Bureau of Industry and Commerce and other agencies identify Security, Commerce. As part of the National Defense and assess emerging technologies for the ACTION: Advance notice of proposed Authorization Act (NDAA) for Fiscal purposes of updating the export control rulemaking (ANPRM). Year 2019, Public Law No: 115–232, lists without impairing national security Congress enacted the Export Control or hampering the ability of the U.S. SUMMARY: The Bureau of Industry and Reform Act of 2018 (the Act or ECRA). commercial sector to keep pace with Security (BIS) controls the export of Section 1758 of the Act authorizes international advances in emerging dual-use and less sensitive military Commerce to establish appropriate fields. items through the Export controls, including interim controls, on Administration Regulations (EAR), the export, reexport, or transfer (in Emerging Technologies including the Commerce Control List country) of emerging and foundational To assist BIS in identifying emerging (CCL). As controls on exports of technologies. Under the Act, emerging technologies that are essential to the technology are a key component of the and foundational technologies are those national security of the United States, effort to protect sensitive U.S. essential to the national security of the this ANPRM seeks public comment on technology, many sensitive technologies United States and are not described in criteria for defining and identifying are listed on the CCL, often consistent Section 721(a)(6)(A)(i)–(v) of the emerging technologies. This ANPRM khammond on DSK30JT082PROD with PROPOSAL with the lists maintained by the Defense Production Act of 1950, as describes certain categories of multilateral export control regimes of amended. Emerging and foundational technology that are currently subject to which the United States is a member. technologies, in keeping with ECRA, the EAR but controlled only to Certain technologies, however, may not will be determined by an interagency embargoed countries, countries yet be listed on the CCL or controlled process that will consider both public designated as supporters of multilaterally because they are emerging and classified information as well as international terrorism, and restricted technologies. As such, they have not yet information from the Emerging end uses or end users. These categories been evaluated for their national Technology Technical Advisory are a representative list of the VerDate Sep<11>2014 16:52 Nov 16, 2018 Jkt 247001 PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 E:\FR\FM\19NOP1.SGM 19NOP1

58202 Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Proposed Rules technology categories from which (xi) AI chipsets. the United States and other countries; Commerce, through an interagency (3) Position, Navigation, and Timing (6) the impact specific emerging process, seeks to determine whether (PNT) technology. technology controls would have on U.S. there are specific emerging technologies (4) Microprocessor technology, such technological leadership; (7) any other that are important to the national as: approaches to the issue of identifying security of the United States for which (i) Systems-on-Chip (SoC); or emerging technologies important to U.S. effective controls can be implemented (ii) Stacked Memory on Chip. national security, including the stage of that avoid negatively impacting U.S. (5) Advanced computing technology, development or maturity level of an leadership in the science, technology, such as: emerging technology that would warrant engineering, and manufacturing sectors. (i) Memory-centric logic. consideration for export control. Commerce does not seek to expand (6) Data analytics technology, such as: Comments should be submitted to BIS jurisdiction over technologies that are (i) Visualization; as described in the ADDRESSES section of not currently subject to the EAR, such (ii) Automated analysis algorithms; or this ANPRM by December 19, 2018. as ‘‘fundamental research’’ described in (iii) Context-aware computing. This rule was determined to be § 734.8 of the EAR. For purposes of this (7) Quantum information and sensing significant by the Office of Management ANPRM, Commerce does not seek to technology, such as Budget under Executive Order 12866. alter existing controls on technology (i) Quantum computing; Dated: November 14, 2018. already specifically described in the (ii) Quantum encryption; or (iii) Quantum sensing. Matthew S. Borman, CCL. Such controls would generally (8) Logistics technology, such as: Deputy Assistant Secretary for Export continue to be addressed through Administration. multilateral regimes or interagency (i) Mobile electric power; (ii) Modeling and simulation; [FR Doc. 2018–25221 Filed 11–16–18; 8:45 am] reviews. (iii) Total asset visibility; or BILLING CODE 3510–33–P Foundational Technology (iv) Distribution-based Logistics Commerce will issue a separate Systems (DBLS). ANPRM regarding identification of (9) Additive manufacturing (e.g., 3D DEPARTMENT OF THE TREASURY foundational technologies that may be printing); important to U.S. national security. (10) Robotics such as: Internal Revenue Service Commerce seeks public comment, (i) Micro-drone and micro-robotic however, on treating emerging and systems; 26 CFR Part 300 foundational technologies as separate (ii) Swarming technology; (iii) Self-assembling robots; [REG–122898–17] types of technology. (iv) Molecular robotics; RIN 1545–BO38 Representative Technology Categories (v) Robot compliers; or The representative general categories (vi) Smart Dust. User Fees Relating to Enrolled Agents of technology for which Commerce (11) Brain-computer interfaces, such and Enrolled Retirement Plan Agents currently seeks to determine whether as (i) Neural-controlled interfaces; AGENCY: Internal Revenue Service (IRS), there are specific emerging technologies Treasury. that are essential to the national security (ii) Mind-machine interfaces; (iii) Direct neural interfaces; or ACTION: Notice of proposed rulemaking of the United States include: (1) Biotechnology, such as: (iv) Brain-machine interfaces. and notice of public hearing. (i) Nanobiology; (12) Hypersonics, such as: (i) Flight control algorithms; SUMMARY: This document contains (ii) Synthetic biology; proposed amendments to the (iv) Genomic and genetic engineering; (ii) Propulsion technologies; (iii) Thermal protection systems; or regulations relating to imposing user or fees for enrolled agents and enrolled (v) Neurotech. (iv) Specialized materials (for structures, sensors, etc.). retirement plan agents. The proposed (2) Artificial intelligence (AI) and (13) Advanced Materials, such as: regulations remove the initial machine learning technology, such as: (i) Adaptive camouflage; enrollment user fee for enrolled (i) Neural networks and deep learning (ii) Functional textiles (e.g., advanced retirement plan agents because the IRS (e.g., brain modelling, time series fiber and fabric technology); or no longer offers initial enrollment as an prediction, classification); (ii) Evolution and genetic (iii) Biomaterials. enrolled retirement plan agent. The computation (e.g., genetic algorithms, (14) Advanced surveillance proposed regulations also increase the genetic programming); technologies, such as: amount of the renewal user fee for (iii) Reinforcement learning; Faceprint and voiceprint enrolled retirement plan agents from (iv) Computer vision (e.g., object technologies. $30 to $67. In addition, the proposed recognition, image understanding); BIS welcomes comments on: (1) How regulations increase the amount of both (v) Expert systems (e.g., decision to define emerging technology to assist the enrollment and renewal user fee for support systems, teaching systems); identification of such technology in the enrolled agents from $30 to $67. The (vi) Speech and audio processing (e.g., future; (2) criteria to apply to determine proposed regulations affect individuals speech recognition and production); whether there are specific technologies who are or apply to become enrolled khammond on DSK30JT082PROD with PROPOSAL (vii) Natural language processing (e.g., within these general categories that are agents and individuals who are enrolled machine translation); important to U.S. national security; (3) retirement plan agents. The (viii) Planning (e.g., scheduling, game sources to identify such technologies; Independent Offices Appropriations Act playing); (4) other general technology categories of 1952 authorizes charging user fees. (ix) Audio and video manipulation that warrant review to identify emerging DATES: Written or electronic comments technologies (e.g., voice cloning, technology that are important to U.S. must be received by January 18, 2019. deepfakes); national security; (5) the status of Requests to speak and outlines of topics (x) AI cloud technologies; or development of these technologies in to be discussed at the public hearing VerDate Sep<11>2014 16:52 Nov 16, 2018 Jkt 247001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\19NOP1.SGM 19NOP1


Document Created: 2018-11-17 02:46:22
Document Modified: 2018-11-17 02:46:22
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionAdvance notice of proposed rulemaking (ANPRM).
DatesSubmit comments on or before December 19, 2018.
ContactKirsten Mortimer, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce. Phone: (202) 482-0092; Fax (202) 482- 3355; Email: [email protected]
FR Citation83 FR 58201 
RIN Number0694-AH61
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