83_FR_714 83 FR 709 - Revisions, Clarifications, and Technical Corrections to the Export Administration Regulations; Correction

83 FR 709 - Revisions, Clarifications, and Technical Corrections to the Export Administration Regulations; Correction

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 5 (January 8, 2018)

Page Range709-711
FR Document2018-00059

In this final rule, the Bureau of Industry and Security corrects an error in the text of Export Control Classification Numbers (ECCNs) 0D606, 0E606, and 8A609.

Federal Register, Volume 83 Issue 5 (Monday, January 8, 2018)
[Federal Register Volume 83, Number 5 (Monday, January 8, 2018)]
[Rules and Regulations]
[Pages 709-711]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00059]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[170207157-7157-01]
RIN 0694-AH31


Revisions, Clarifications, and Technical Corrections to the 
Export Administration Regulations; Correction

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule; correcting amendments.

-----------------------------------------------------------------------

SUMMARY: In this final rule, the Bureau of Industry and Security 
corrects an error in the text of Export Control Classification Numbers 
(ECCNs) 0D606, 0E606, and 8A609.

DATES: This rule is effective January 8, 2018.

FOR FURTHER INFORMATION CONTACT: Ivan Mogensen, Office of Exporter 
Services, Bureau of Industry and Security, by telephone: (202) 482-2440 
or email: [email protected].

SUPPLEMENTARY INFORMATION:

Overview

    On December 27, 2017, BIS published a final rule, Revisions, 
Clarifications, and Technical Corrections to the Export Administration 
Regulations (82 FR 61153) (the December 27 rule), which made 
corrections to certain provisions of the Export Administration 
Regulations (EAR), including the Commerce Control List (part 774 of the 
EAR) (CCL). The corrections were editorial in nature and did not affect 
license requirements. In this final rule, BIS is amending ECCNs 0D606 
and 0E606 by reinstating original text that was erroneously replaced 
with the text for ECCNs 0D614 and 0E614, respectively, in the December 
27 rule. In addition, this rule reinstates paragraph (2) of the Special 
Conditions for STA in ECCN 8A609.

Part 774

    ECCNs 0D606 and 0E606: The December 27 rule amended ECCN 
subparagraphs 0D606.a and 0E606.a to include references to ECCNs 0B606 
and 0C606. During drafting, the License Requirements section and the 
text following the revised subparagraphs for both ECCNs was exchanged 
with the text for ECCNs 0D614 and 0E614, respectively. In order to 
follow the guidelines of the original preamble, this correction to the 
December 27 rule restores the original License Requirements section and 
the text of ECCNs 0D606 and 0E606 following subparagraph .a in both 
ECCNs. In addition, this rule replaces the incorrect reference to 0D606 
with 0E606 in the Special Conditions for STA of ECCN 0E606.
    ECCN 8A609: The December 27 rule amended ECCN 8A609 by revising the 
title reference in these ECCNs to match the current title of Sec.  
740.20(g) and in doing so inadvertently removed paragraph (2) of the 
Special Conditions for STA. This rule restores paragraph (2) of the 
Special Conditions for STA in ECCN 8A609.

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as 
amended, has been in lapse. However, 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 15, 2017, 82 FR 
39005 (August 16, 2017) has continued the EAR in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
BIS continues to carry out the provisions of the Export Administration 
Act, as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222 as amended by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule does not impose any regulatory burden on the 
public and is consistent with the goals of Executive Order 13563. This 
rule has been designated not significant for purposes of Executive 
Order 12866. This rule is not an Executive Order 13771 regulatory 
action because this rule is not significant under Executive Order 
12866.
    2. This final rule does not contain information collections subject 
to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.) (PRA). 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 Office of Management and Budget (OMB) Control Number.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The Department of Commerce finds that there is good cause under 
5 U.S.C. 553(b)(B) to waive the provisions of the Administrative 
Procedure Act otherwise requiring prior notice and the opportunity for 
public comment because they are unnecessary. The revisions made by this 
rule are administrative in nature and do not affect the privileges and 
obligations of the public. Additionally, it is important that the edits 
and clarifications are added as soon as possible to prevent improper 
interpretation of the EAR. The Department also finds that there is good 
cause under 5 U.S.C. 553(b)(A) to waive the provisions of the 
Administrative Procedure Act requiring notice and comment because these 
changes are limited to providing guidance on existing interpretations 
of current EAR provisions. Because these revisions are not substantive 
changes to the EAR, the 30-day delay in effectiveness otherwise 
required by 5 U.S.C. 553(d) is not applicable. No other law requires 
that a notice of proposed rulemaking and opportunity for public comment 
be given for this rule. The analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et. seq.) are not applicable because no 
general notice of proposed rulemaking was required

[[Page 710]]

for this rule by 5 U.S.C. 553, or by any other law. Accordingly, no 
regulatory flexibility analysis is required and none has been prepared.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, part 774 of the Export Administration Regulations (15 
CFR part 774) is amended as follows:

PART 774--[AMENDED]

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

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 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 15, 2017, 82 FR 39005 (August 
16, 2017).


0
2. In supplement No. 1 to part 774, Category 0, ECCN 0D606 is revised 
to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *
0D606 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of ground vehicles and 
related commodities controlled by 0A606, 0B606, or 0C606 (see List 
of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry, except 0D606.y  NS Column 1.
RS applies to entire entry, except 0D606.y  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry, except 0D606.y  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions

(See Part 740 for a description of all license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any software in 0D606.

List of Items Controlled

Related Controls: (1) Software directly related to articles 
enumerated or otherwise described in USML Category VII are subject 
to the controls of USML paragraph VII(h). (2) See ECCN 0A919 for 
foreign made ``military commodities'' that incorporate more than a 
de minimis amount of U.S.-origin ``600 series'' controlled content.
Related Definitions: N/A.
Items:

    a. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCNs 0A606 (except for ECCNs 0A606.b or 0A606.y), 0B606, or 
0C606.
    b. through x. [RESERVED]
    y. ``Specific software'' ``specially designed'' for the 
``production,'' ``development,'' operation, or maintenance of 
commodities described in ECCN 0A606.y.


0
3. In supplement No. 1 to part 774, Category 0, ECCN 0E606 is revised 
to read as follows:

0E606 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of ground vehicles and related commodities 
in 0A606, 0B606, 0C606, or software in 0D606 (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry, except 0E606.y  NS Column 1.
RS applies to entire entry, except 0D606.y  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry, except 0D606.y  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions

(See Part 740 for a description of all license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any technology in 0E606.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category VII are subject to the controls of USML 
paragraph VII(h).
Related Definitions: N/A.
Items:

    a. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities enumerated or otherwise 
described in ECCN 0A606 (except for ECCNs 0A606.b or 0A606.y), 
0B606, or 0C606.
    b. through x. [RESERVED]
    y. Specific ``technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul or refurbishing of commodities or software in ECCN 0A606.y 
or 0D606.y.

0
4. In supplement No. 1 to part 774, Category 8, ECCN 8A609 is revised 
to read as follows:

8A609 Surface vessels of war and related commodities (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1  to part 738)
 
NS applies to entire entry, except 8A609.y  NS Column 1.
RS applies to entire entry, except 8A609.y  RS Column 1.
AT applies to entire entry................  AT Column 1.
UN applies to entire entry, except 8A609.y  See Sec.   746.1(b) for UN
                                             controls.
 

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

LVS: $1500.
GBS: N/A.
CIV: N/A.

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 any item in 8A609.a, 
unless determined by BIS to be eligible for License Exception STA in 
accordance with Sec.  740.20(g) (License Exception STA eligibility 
requests for 9x515 and ``600 series'' items). (2) Paragraph (c)(2) 
of License Exception STA (Sec.  740.20(c)(2) of the EAR) may not be 
used for any item in 8A609.

List of Items Controlled

Related Controls: (1) Surface vessels of war and special naval 
equipment, and technical data (including software), and services 
directly related thereto, described in 22 CFR part 121, Category VI, 
Surface Vessels of War and Special Naval Equipment, are subject to 
the jurisdiction of the International Traffic in Arms Regulations. 
(2) See ECCN 0A919 for foreign-made ``military commodities'' that 
incorporate more than a de minimis amount of U.S.- origin ``600 
series'' controlled content. (3) For controls on diesel engines and 
electric motors that are ``subject to the EAR'' for surface vessels 
of war ``subject to the EAR'' or ``subject to the ITAR,'' see ECCN 
8A992.g. For diesel engines and electric motors for surface vessels 
of war ``subject to the ITAR,'' see 22 CFR part 121, Category VI(c) 
for parts, components, accessories, and attachments, ``specially 
designed'' for developmental vessels funded by the Department of 
Defense via contract or other funding authorization. (4) For 
controls on military gas turbine

[[Page 711]]

engines and related items for vessels of war, see ECCN 9A619.
Related Definitions: N/A.
Items:

    a. Surface vessels of war ``specially designed'' for a military 
use and not enumerated or otherwise described in the USML.

    Note 1: 8A609.a includes: (i) Underway replenishment ships; (ii) 
surface vessel and submarine tender and repair ships, except vessels 
that are ``specially designed'' to support naval nuclear propulsion 
plants; (iii) non-submersible submarine rescue ships; (iv) other 
auxiliaries (e.g., AGDS, AGF, AGM, AGOR, AGOS, AH, AP, ARL, AVB, 
AVM, and AVT); (v) amphibious warfare craft, except those that are 
armed; and (vi) unarmored and unarmed coastal, patrol, roadstead, 
and Coast Guard and other patrol craft with mounts or hard points 
for firearms of .50 caliber or less.


    Note 2: For purposes of paragraph .a, surface vessels of war 
includes vessels ``specially designed'' for military use that are 
not identified in paragraph (a) of ITAR Sec.  121.15, including any 
demilitarized vessels, regardless of origin or designation, 
manufactured prior to 1950 and that have not been modified since 
1949. For purposes of this note, the term modified does not include 
incorporation of safety features required by law, cosmetic changes 
(e.g., different paint), or the addition of ``parts'' or 
``components'' available prior to 1950.

    b. Non-magnetic diesel engines with a power output of 50 hp or 
more and either of the following:
    b.1. Non-magnetic content exceeding 25% of total weight; or
    b.2. Non-magnetic parts other than crankcase, block, head, 
pistons, covers, end plates, valve facings, gaskets, and fuel, 
lubrication and other supply lines.
    c. through w. [RESERVED]
    x. ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' that are ``specially designed'' for a commodity 
enumerated or otherwise described in ECCN 8A609 (except for 8A609.y) 
or a defense article enumerated or otherwise described in USML 
Category VI and not specified elsewhere on the USML, in 8A609.y or 
3A611.y.

    Note 1: Forgings, castings, and other unfinished products, such 
as extrusions and machined bodies, that have reached a stage in 
manufacturing where they are clearly identifiable by mechanical 
properties, material composition, geometry, or function as 
commodities controlled by ECCN 8A609.x are controlled by ECCN 
8A609.x.


    Note 2: ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' specified in USML subcategory VI(f) are subject to 
the controls of that paragraph. ``Parts,'' ``components,'' 
``accessories,'' and ``attachments'' specified in ECCN 8A609.y are 
subject to the controls of that paragraph.

    y. Specific ``parts,'' ``components,'' ``accessories'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this ECCN or for a defense article in USML Category VI 
and not elsewhere specified in the USML, as follows, and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' therefor:
    y.1. Public address (PA) systems;
    y.2. Filters and filter assemblies, hoses, lines, fittings, 
couplings, and brackets for pneumatic, hydraulic, oil and fuel 
systems;
    y.3. Galleys;
    y.4. Lavatories;
    y.5. Magnetic compass, magnetic azimuth detector;
    y.6. Medical facilities;
    y.7. Potable water tanks, filters, valves, hoses, lines, 
fittings, couplings, and brackets;
    y.8. Panel knobs, indicators, switches, buttons, and dials 
whether unfiltered or filtered for use with night vision imaging 
systems;
    y.9. Emergency lighting;
    y.10. Gauges and indicators;
    y.11. Audio selector panels.

    Dated: January 2, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-00059 Filed 1-5-18; 8:45 am]
BILLING CODE-P



                                                                    Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Rules and Regulations                                              709

                                                violation predated such adjustment,                     license requirements. In this final rule,              (including potential economic,
                                                which are assessed by the Department of                 BIS is amending ECCNs 0D606 and                        environmental, public health and safety
                                                Commerce after the effective date of the                0E606 by reinstating original text that                effects, distributive impacts, and
                                                new civil monetary penalty level, and                   was erroneously replaced with the text                 equity). Executive Order 13563
                                                before the effective date of any future                 for ECCNs 0D614 and 0E614,                             emphasizes the importance of
                                                adjustments for inflation to civil                      respectively, in the December 27 rule. In              quantifying both costs and benefits, of
                                                monetary penalties thereto made                         addition, this rule reinstates paragraph               reducing costs, of harmonizing rules,
                                                subsequent to January 15, 2018 as                       (2) of the Special Conditions for STA in               and of promoting flexibility. This rule
                                                provided in § 6.5.                                      ECCN 8A609.                                            does not impose any regulatory burden
                                                                                                                                                               on the public and is consistent with the
                                                § 6.5 Subsequent annual adjustments for                 Part 774
                                                                                                                                                               goals of Executive Order 13563. This
                                                inflation to civil monetary penalties.                     ECCNs 0D606 and 0E606: The                          rule has been designated not significant
                                                   The Secretary of Commerce or his or                  December 27 rule amended ECCN                          for purposes of Executive Order 12866.
                                                her designee by regulation shall make                   subparagraphs 0D606.a and 0E606.a to                   This rule is not an Executive Order
                                                subsequent adjustments for inflation to                 include references to ECCNs 0B606 and                  13771 regulatory action because this
                                                the Department of Commerce’s civil                      0C606. During drafting, the License                    rule is not significant under Executive
                                                monetary penalties annually, which                      Requirements section and the text                      Order 12866.
                                                shall take effect not later than January                following the revised subparagraphs for                   2. This final rule does not contain
                                                15, notwithstanding section 553 of title                both ECCNs was exchanged with the                      information collections subject to the
                                                5, United States Code.                                  text for ECCNs 0D614 and 0E614,                        requirements of the Paperwork
                                                [FR Doc. 2017–28230 Filed 1–5–18; 8:45 am]              respectively. In order to follow the                   Reduction Act of 1995 (44 U.S.C. 3501
                                                BILLING CODE 3510–DP–P
                                                                                                        guidelines of the original preamble, this              et seq.) (PRA). Notwithstanding any
                                                                                                        correction to the December 27 rule                     other provision of law, no person is
                                                                                                        restores the original License                          required to respond to, nor is subject to
                                                DEPARTMENT OF COMMERCE                                  Requirements section and the text of                   a penalty for failure to comply with, a
                                                                                                        ECCNs 0D606 and 0E606 following                        collection of information, subject to the
                                                Bureau of Industry and Security                         subparagraph .a in both ECCNs. In                      requirements of the Paperwork
                                                                                                        addition, this rule replaces the incorrect             Reduction Act of 1995 (44 U.S.C. 3501
                                                15 CFR Part 774                                         reference to 0D606 with 0E606 in the                   et seq.) (PRA), unless that collection of
                                                [170207157–7157–01]                                     Special Conditions for STA of ECCN                     information displays a currently valid
                                                                                                        0E606.                                                 Office of Management and Budget
                                                RIN 0694–AH31                                              ECCN 8A609: The December 27 rule                    (OMB) Control Number.
                                                                                                        amended ECCN 8A609 by revising the                        3. This rule does not contain policies
                                                Revisions, Clarifications, and                          title reference in these ECCNs to match                with Federalism implications as that
                                                Technical Corrections to the Export                     the current title of § 740.20(g) and in                term is defined in Executive Order
                                                Administration Regulations;                             doing so inadvertently removed                         13132.
                                                Correction                                              paragraph (2) of the Special Conditions                   4. The Department of Commerce finds
                                                                                                        for STA. This rule restores paragraph (2)              that there is good cause under 5 U.S.C.
                                                AGENCY:  Bureau of Industry and
                                                                                                        of the Special Conditions for STA in                   553(b)(B) to waive the provisions of the
                                                Security, Commerce.
                                                                                                        ECCN 8A609.                                            Administrative Procedure Act otherwise
                                                ACTION: Final rule; correcting                                                                                 requiring prior notice and the
                                                amendments.                                             Export Administration Act                              opportunity for public comment
                                                SUMMARY:   In this final rule, the Bureau                 Since August 21, 2001, the Export                    because they are unnecessary. The
                                                of Industry and Security corrects an                    Administration Act of 1979, as                         revisions made by this rule are
                                                error in the text of Export Control                     amended, has been in lapse. However,                   administrative in nature and do not
                                                Classification Numbers (ECCNs) 0D606,                   the President, through Executive Order                 affect the privileges and obligations of
                                                0E606, and 8A609.                                       13222 of August 17, 2001, 3 CFR, 2001                  the public. Additionally, it is important
                                                                                                        Comp., p. 783 (2002), as amended by                    that the edits and clarifications are
                                                DATES: This rule is effective January 8,                                                                       added as soon as possible to prevent
                                                                                                        Executive Order 13637 of March 8,
                                                2018.                                                                                                          improper interpretation of the EAR. The
                                                                                                        2013, 78 FR 16129 (March 13, 2013),
                                                FOR FURTHER INFORMATION CONTACT: Ivan                   and as extended by the Notice of August                Department also finds that there is good
                                                Mogensen, Office of Exporter Services,                  15, 2017, 82 FR 39005 (August 16, 2017)                cause under 5 U.S.C. 553(b)(A) to waive
                                                Bureau of Industry and Security, by                     has continued the EAR in effect under                  the provisions of the Administrative
                                                telephone: (202) 482–2440 or email:                     the International Emergency Economic                   Procedure Act requiring notice and
                                                Ivan.Mogensen@bis.doc.gov.                              Powers Act (50 U.S.C. 1701 et seq.). BIS               comment because these changes are
                                                SUPPLEMENTARY INFORMATION:                              continues to carry out the provisions of               limited to providing guidance on
                                                                                                        the Export Administration Act, as                      existing interpretations of current EAR
                                                Overview                                                                                                       provisions. Because these revisions are
                                                                                                        appropriate and to the extent permitted
                                                   On December 27, 2017, BIS published                  by law, pursuant to Executive Order                    not substantive changes to the EAR, the
                                                a final rule, Revisions, Clarifications,                13222 as amended by Executive Order                    30-day delay in effectiveness otherwise
                                                and Technical Corrections to the Export                 13637.                                                 required by 5 U.S.C. 553(d) is not
                                                Administration Regulations (82 FR                                                                              applicable. No other law requires that a
jstallworth on DSKBBY8HB2PROD with RULES




                                                61153) (the December 27 rule), which                    Rulemaking Requirements                                notice of proposed rulemaking and
                                                made corrections to certain provisions                     1. Executive Orders 13563 and 12866                 opportunity for public comment be
                                                of the Export Administration                            direct agencies to assess all costs and                given for this rule. The analytical
                                                Regulations (EAR), including the                        benefits of available regulatory                       requirements of the Regulatory
                                                Commerce Control List (part 774 of the                  alternatives and, if regulation is                     Flexibility Act (5 U.S.C. 601 et. seq.) are
                                                EAR) (CCL). The corrections were                        necessary, to select regulatory                        not applicable because no general notice
                                                editorial in nature and did not affect                  approaches that maximize net benefits                  of proposed rulemaking was required


                                           VerDate Sep<11>2014   15:10 Jan 05, 2018   Jkt 244001   PO 00000   Frm 00005   Fmt 4700   Sfmt 4700   E:\FR\FM\08JAR1.SGM   08JAR1


                                                710                 Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Rules and Regulations

                                                for this rule by 5 U.S.C. 553, or by any                   to the controls of USML paragraph VII(h).              y. Specific ‘‘technology’’ ‘‘required’’ for the
                                                other law. Accordingly, no regulatory                      (2) See ECCN 0A919 for foreign made                 ‘‘development,’’ ‘‘production,’’ operation,
                                                flexibility analysis is required and none                  ‘‘military commodities’’ that incorporate           installation, maintenance, repair, overhaul or
                                                                                                           more than a de minimis amount of U.S.-              refurbishing of commodities or software in
                                                has been prepared.
                                                                                                           origin ‘‘600 series’’ controlled content.           ECCN 0A606.y or 0D606.y.
                                                List of Subjects in 15 CFR Part 774                     Related Definitions: N/A.                              ■ 4. In supplement No. 1 to part 774,
                                                                                                        Items:
                                                  Exports, Reporting and recordkeeping                                                                         Category 8, ECCN 8A609 is revised to
                                                requirements.                                              a. ‘‘Software’’ ‘‘specially designed’’ for the      read as follows:
                                                                                                        ‘‘development,’’ ‘‘production,’’ operation, or
                                                  Accordingly, part 774 of the Export                   maintenance of commodities controlled by               8A609 Surface vessels of war and related
                                                Administration Regulations (15 CFR                      ECCNs 0A606 (except for ECCNs 0A606.b or                  commodities (see List of Items
                                                part 774) is amended as follows:                        0A606.y), 0B606, or 0C606.                                Controlled).
                                                                                                           b. through x. [RESERVED]                            License Requirements
                                                PART 774—[AMENDED]                                         y. ‘‘Specific software’’ ‘‘specially designed’’
                                                                                                        for the ‘‘production,’’ ‘‘development,’’               Reason for Control: NS, RS, AT, UN.
                                                ■ 1. The authority citation for 15 CFR                  operation, or maintenance of commodities
                                                part 774 continues to read as follows:                  described in ECCN 0A606.y.                                                            Country Chart
                                                                                                                                                                       Control(s)           (See Supp. No. 1
                                                   Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.                                                                                                to part 738)
                                                1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.                 ■ 3. In supplement No. 1 to part 774,
                                                7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et              Category 0, ECCN 0E606 is revised to                   NS applies to entire      NS Column 1.
                                                seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15               read as follows:                                         entry, except
                                                U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201                                                                     8A609.y.
                                                                                                        0E606 ‘‘Technology’’ ‘‘required’’ for the
                                                et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR                                                                     RS applies to entire      RS Column 1.
                                                                                                           ‘‘development,’’ ‘‘production,’’
                                                58767, 3 CFR, 1996 Comp., p. 228; E.O.                                                                           entry, except
                                                13222, 66 FR 44025, 3 CFR, 2001 Comp., p.                  operation, installation, maintenance,
                                                                                                                                                                 8A609.y.
                                                783; Notice of August 15, 2017, 82 FR 39005                repair, overhaul, or refurbishing of
                                                                                                                                                               AT applies to entire      AT Column 1.
                                                (August 16, 2017).                                         ground vehicles and related
                                                                                                                                                                 entry.
                                                                                                           commodities in 0A606, 0B606, 0C606, or
                                                ■ 2. In supplement No. 1 to part 774,                                                                          UN applies to entire      See § 746.1(b) for UN
                                                                                                           software in 0D606 (see List of Items
                                                                                                                                                                 entry, except             controls.
                                                Category 0, ECCN 0D606 is revised to                       Controlled).
                                                                                                                                                                 8A609.y.
                                                read as follows:                                        License Requirements
                                                                                                                                                               List Based License Exceptions (See Part 740
                                                Supplement No. 1 to Part 774—The                        Reason for Control: NS, RS, AT, UN.                    for a description of all license exceptions)
                                                Commerce Control List                                                                                          LVS: $1500.
                                                                                                                                         Country Chart
                                                *      *     *       *      *                                  Control(s)              (See Supp. No. 1
                                                                                                                                                               GBS: N/A.
                                                0D606 ‘‘Software’’ ‘‘specially designed’’ for                                             to part 738)         CIV: N/A.
                                                   the ‘‘development,’’ ‘‘production,’’
                                                                                                                                                               Special Conditions for STA
                                                   operation, or maintenance of ground                  NS applies to entire         NS Column 1.
                                                   vehicles and related commodities                       entry, except                                        STA: (1) Paragraph (c)(1) of License
                                                   controlled by 0A606, 0B606, or 0C606                   0E606.y.                                               Exception STA (§ 740.20(c)(1) of the EAR)
                                                   (see List of Items Controlled).                      RS applies to entire         RS Column 1.                may not be used for any item in 8A609.a,
                                                                                                          entry, except                                          unless determined by BIS to be eligible for
                                                License Requirements                                                                                             License Exception STA in accordance with
                                                                                                          0D606.y.
                                                Reason for Control: NS, RS, AT, UN.                     AT applies to entire         AT Column 1.                § 740.20(g) (License Exception STA
                                                                                                                                                                 eligibility requests for 9x515 and ‘‘600
                                                                                                          entry.
                                                                                  Country Chart                                                                  series’’ items). (2) Paragraph (c)(2) of
                                                                                                        UN applies to entire         See § 746.1(b) for UN
                                                       Control(s)               (See Supp. No. 1                                                                 License Exception STA (§ 740.20(c)(2) of
                                                                                   to part 738)           entry, except                controls.
                                                                                                                                                                 the EAR) may not be used for any item in
                                                                                                          0D606.y.
                                                                                                                                                                 8A609.
                                                NS applies to entire       NS Column 1.                 List Based License Exceptions
                                                  entry, except                                                                                                List of Items Controlled
                                                  0D606.y.                                              (See Part 740 for a description of all license
                                                                                                                                                               Related Controls: (1) Surface vessels of war
                                                RS applies to entire       RS Column 1.                 exceptions)
                                                                                                                                                                 and special naval equipment, and technical
                                                  entry, except                                         CIV: N/A.                                                data (including software), and services
                                                  0D606.y.                                              TSR: N/A.                                                directly related thereto, described in 22
                                                AT applies to entire       AT Column 1.                 Special Conditions for STA                               CFR part 121, Category VI, Surface Vessels
                                                  entry.                                                                                                         of War and Special Naval Equipment, are
                                                UN applies to entire       See § 746.1(b) for UN        STA: Paragraph (c)(2) of License Exception               subject to the jurisdiction of the
                                                  entry, except              controls.                    STA (§ 740.20(c)(2) of the EAR) may not be             International Traffic in Arms Regulations.
                                                  0D606.y.                                                used for any technology in 0E606.                      (2) See ECCN 0A919 for foreign-made
                                                                                                        List of Items Controlled                                 ‘‘military commodities’’ that incorporate
                                                List Based License Exceptions                                                                                    more than a de minimis amount of U.S.-
                                                (See Part 740 for a description of all license          Related Controls: Technical data directly                origin ‘‘600 series’’ controlled content. (3)
                                                exceptions)                                                related to articles enumerated in USML                For controls on diesel engines and electric
                                                                                                           Category VII are subject to the controls of           motors that are ‘‘subject to the EAR’’ for
                                                CIV: N/A.
                                                TSR: N/A.                                                  USML paragraph VII(h).                                surface vessels of war ‘‘subject to the EAR’’
                                                                                                        Related Definitions: N/A.                                or ‘‘subject to the ITAR,’’ see ECCN
                                                Special Conditions for STA                              Items:                                                   8A992.g. For diesel engines and electric
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                                                STA: Paragraph (c)(2) of License Exception                 a. ‘‘Technology’’ ‘‘required’’ for the                motors for surface vessels of war ‘‘subject
                                                  STA (§ 740.20(c)(2) of the EAR) may not be            ‘‘development,’’ ‘‘production,’’ operation,              to the ITAR,’’ see 22 CFR part 121,
                                                  used for any software in 0D606.                       installation, maintenance, repair, overhaul,             Category VI(c) for parts, components,
                                                                                                        or refurbishing of commodities enumerated                accessories, and attachments, ‘‘specially
                                                List of Items Controlled                                or otherwise described in ECCN 0A606                     designed’’ for developmental vessels
                                                Related Controls: (1) Software directly related         (except for ECCNs 0A606.b or 0A606.y),                   funded by the Department of Defense via
                                                  to articles enumerated or otherwise                   0B606, or 0C606.                                         contract or other funding authorization. (4)
                                                  described in USML Category VII are subject               b. through x. [RESERVED]                              For controls on military gas turbine



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                                                                    Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Rules and Regulations                                                       711

                                                   engines and related items for vessels of             ‘‘components,’’ ‘‘accessories,’’ and                   favorable decisions when the
                                                   war, see ECCN 9A619.                                 ‘‘attachments’’ ‘‘specially designed’’ therefor:       documentary record warrants doing so.
                                                Related Definitions: N/A.                                  y.1. Public address (PA) systems;                   72 FR 44763. We instituted this practice
                                                Items:                                                     y.2. Filters and filter assemblies, hoses,
                                                                                                                                                               to provide more timely service to the
                                                   a. Surface vessels of war ‘‘specially                lines, fittings, couplings, and brackets for
                                                                                                        pneumatic, hydraulic, oil and fuel systems;            increasing number of applicants for
                                                designed’’ for a military use and not
                                                enumerated or otherwise described in the                   y.3. Galleys;                                       Social Security disability benefits and
                                                USML.                                                      y.4. Lavatories;                                    Supplemental Security Income
                                                   Note 1: 8A609.a includes: (i) Underway                  y.5. Magnetic compass, magnetic azimuth             payments based on disability. We
                                                replenishment ships; (ii) surface vessel and            detector;                                              considered the public comments we
                                                submarine tender and repair ships, except                  y.6. Medical facilities;                            received on the interim final rule, and
                                                vessels that are ‘‘specially designed’’ to                 y.7. Potable water tanks, filters, valves,          on March 3, 2008, we issued a final rule
                                                support naval nuclear propulsion plants; (iii)          hoses, lines, fittings, couplings, and brackets;       without change. 73 FR 11349. Under
                                                non-submersible submarine rescue ships; (iv)               y.8. Panel knobs, indicators, switches,
                                                                                                                                                               this rule, some attorney advisors may
                                                other auxiliaries (e.g., AGDS, AGF, AGM,                buttons, and dials whether unfiltered or
                                                                                                        filtered for use with night vision imaging             develop claims and, in appropriate
                                                AGOR, AGOS, AH, AP, ARL, AVB, AVM, and                                                                         cases, issue fully favorable decisions
                                                AVT); (v) amphibious warfare craft, except              systems;
                                                those that are armed; and (vi) unarmored                   y.9. Emergency lighting;                            before a hearing.
                                                and unarmed coastal, patrol, roadstead, and                y.10. Gauges and indicators;                          We originally intended the attorney
                                                Coast Guard and other patrol craft with                    y.11. Audio selector panels.                        advisor program to be a temporary
                                                mounts or hard points for firearms of .50                 Dated: January 2, 2018.                              modification to our procedures.
                                                caliber or less.
                                                                                                        Karen H. Nies-Vogel,                                   Therefore, we included in sections
                                                   Note 2: For purposes of paragraph .a,                                                                       404.942(g) and 416.1442(g) of the
                                                                                                        Director, Office of Exporter Services.
                                                surface vessels of war includes vessels                                                                        interim final rule a provision that the
                                                                                                        [FR Doc. 2018–00059 Filed 1–5–18; 8:45 am]
                                                ‘‘specially designed’’ for military use that are                                                               program would end on August 10, 2009,
                                                not identified in paragraph (a) of ITAR                 BILLING CODE–P                                         unless we decided to either terminate
                                                § 121.15, including any demilitarized vessels,                                                                 the rule earlier or extend it beyond that
                                                regardless of origin or designation,                                                                           date by publication of a final rule in the
                                                manufactured prior to 1950 and that have                SOCIAL SECURITY ADMINISTRATION                         Federal Register. Since that time, we
                                                not been modified since 1949. For purposes
                                                                                                                                                               have periodically extended the sunset
                                                of this note, the term modified does not                20 CFR Parts 404 and 416
                                                include incorporation of safety features                                                                       date (see 74 FR 33327 extending to
                                                required by law, cosmetic changes (e.g.,                [Docket No. SSA–2017–0062]                             August 10, 2011; 76 FR 18383 extending
                                                different paint), or the addition of ‘‘parts’’ or                                                              to August 9, 2013; 78 FR 45459
                                                                                                        RIN 0960–AI26
                                                ‘‘components’’ available prior to 1950.                                                                        extending to August 7, 2015; and 80 FR
                                                   b. Non-magnetic diesel engines with a                Extension of Sunset Date for Attorney                  31990 extending to August 4, 2017). As
                                                power output of 50 hp or more and either of             Advisor Program                                        we noted above, the current sunset date
                                                the following:                                                                                                 for the program is February 5, 2018. 82
                                                   b.1. Non-magnetic content exceeding 25%              AGENCY:    Social Security Administration.             FR 34400.
                                                of total weight; or                                     ACTION:   Final rule.
                                                   b.2. Non-magnetic parts other than                                                                          Explanation of Extension
                                                crankcase, block, head, pistons, covers, end            SUMMARY:    We are extending for six                      We published the final rule to adopt
                                                plates, valve facings, gaskets, and fuel,               months our rule authorizing attorney                   without change the interim final rule
                                                lubrication and other supply lines.                     advisors to conduct certain prehearing
                                                   c. through w. [RESERVED]                                                                                    that we published on August 9, 2007.
                                                                                                        proceedings and to issue fully favorable               We stated our intent to monitor the
                                                   x. ‘‘Parts,’’ ‘‘components,’’ ‘‘accessories’’
                                                and ‘‘attachments’’ that are ‘‘specially
                                                                                                        decisions. The current rule is scheduled               program closely and to modify it if it
                                                designed’’ for a commodity enumerated or                to expire on February 5, 2018. In this                 did not meet our expectations. 73 FR
                                                otherwise described in ECCN 8A609 (except               final rule, we are extending the sunset                11349.
                                                for 8A609.y) or a defense article enumerated            date to August 3, 2018. We are making                     We explained in the 2008 final rule
                                                or otherwise described in USML Category VI              no other substantive changes.                          that the number of requests for hearings
                                                and not specified elsewhere on the USML, in             DATES: This final rule is effective                    had increased significantly in recent
                                                8A609.y or 3A611.y.                                     January 8, 2018.                                       years. From 2008 to the present, the
                                                   Note 1: Forgings, castings, and other                FOR FURTHER INFORMATION CONTACT:                       number of pending hearing requests has
                                                unfinished products, such as extrusions and
                                                                                                        Susan Swansiger, Office of Hearings                    continued to remain at a high level, and
                                                machined bodies, that have reached a stage
                                                in manufacturing where they are clearly                 Operations, Social Security                            we anticipate that we will receive
                                                identifiable by mechanical properties,                  Administration, 5107 Leesburg Pike,                    several hundred thousand hearing
                                                material composition, geometry, or function             Falls Church, VA 22041, (703) 605–                     requests in fiscal year 2018.1 We are
                                                as commodities controlled by ECCN 8A609.x               8500. For information on eligibility or                extending the program at this time
                                                are controlled by ECCN 8A609.x.                         filing for benefits, call our national toll-           while we continue to consider our
                                                   Note 2: ‘‘Parts,’’ ‘‘components,’’                   free number, 800–772–1213 or TTY                       options with respect to the program.
                                                ‘‘accessories’’ and ‘‘attachments’’ specified in        800–325–0778, or visit our internet site,                 To preserve the maximum degree of
                                                USML subcategory VI(f) are subject to the               Social Security Online, at http://                     flexibility we need to manage our
                                                controls of that paragraph. ‘‘Parts,’’                  www.socialsecurity.gov.                                hearings-level workloads effectively, we
                                                ‘‘components,’’ ‘‘accessories,’’ and                                                                           have decided to extend the attorney
                                                                                                        SUPPLEMENTARY INFORMATION:
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                                                ‘‘attachments’’ specified in ECCN 8A609.y                                                                      advisor rule for six months until August
                                                are subject to the controls of that paragraph.          Background of the Attorney Advisor                     3, 2018. As before, we reserve the
                                                   y. Specific ‘‘parts,’’ ‘‘components,’’               Program                                                authority to end the program earlier, to
                                                ‘‘accessories’’ and ‘‘attachments’’ ‘‘specially
                                                designed’’ for a commodity subject to control              On August 9, 2007, we issued an                        1 Our budget estimates indicate that we expect to
                                                in this ECCN or for a defense article in USML           interim final rule permitting some                     receive approximately 645,000 hearing requests in
                                                Category VI and not elsewhere specified in              attorney advisors to conduct certain                   fiscal year 2018 (available at: https://www.ssa.gov/
                                                the USML, as follows, and ‘‘parts,’’                    prehearing proceedings and issue fully                 budget/FY18Files/2018BO.pdf).



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Document Created: 2018-01-06 02:32:11
Document Modified: 2018-01-06 02:32:11
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; correcting amendments.
DatesThis rule is effective January 8, 2018.
ContactIvan Mogensen, Office of Exporter Services, Bureau of Industry and Security, by telephone: (202) 482-2440 or email: [email protected]
FR Citation83 FR 709 
RIN Number0694-AH31
CFR AssociatedExports and Reporting and Recordkeeping Requirements

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