[Federal Register: March 25, 1996 (Rules and Regulations)]
[Page 12764-12814]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[[pp. 12764-12814]] Export Administration Regulation; Simplification of Export
Administration Regulations
[[Continued from page 12763]]
[[Page 12764]]
[[Page 12765]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.005
[[Page 12766]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.006
[[Page 12767]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.007
BILLING CODE 3510-DT-C
[[Page 12768]]
PART 740--LICENSE EXCEPTIONS
Sec.
740.1 Introduction.
740.2 Restrictions on all License Exceptions.
740.3 License Exceptions based on the Commerce Control List (LST).
740.4 Temporary imports, exports, and reexports (TMP).
740.5 Servicing and replacement of parts and equipment (RPL).
740.6 Governments and international organizations (GOV).
740.7 Gift parcels and humanitarian donations (GFT).
740.8 Technology and software--unrestricted (TSU).
740.9 Baggage (BAG).
740.10 Aircraft and vessels (AVS).
740.11 Additional Permissive Reexports (APR).
Supplement No. 1 to Part 740--Country Groups
Supplement No. 2 to Part 740--Items That May Be Donated to Meet Basic
Human Needs Under the Humanitarian License Exception
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60
FR 42767, August 17, 1995).
Sec. 740.1 Introduction.
In this part, references to the EAR are references to 15 CFR
chapter VII, subchapter C.
(a) Scope. A ``License Exception'' is an authorization contained in
this part that allows you to export or reexport, under stated
conditions, items subject to the Export Administration Regulations
(EAR) that would otherwise require a license under General Prohibitions
One, Two, or Three, as indicated under one or more of the Export
Control Classification Numbers (ECCN) in the Commerce Control List
(CCL) in part 774 of the EAR. If your export or reexport is subject to
General Prohibition Six for embargoed destinations, refer to part 746
of the EAR concerning embargoed destinations to determine the
availability of any License Exception. Special commodity controls apply
to short supply items. Exceptions for items listed on the CCL as
controlled for Short Supply reasons are found in part 754 of the EAR.
If your export or reexport is subject General Prohibition Seven,
consult part 744 of the EAR. If your export or reexport is subject to
General Prohibitions Four, Five, Eight, Nine, or Ten, then no License
Exceptions apply.
(b) Certification. By using any of the License Exceptions you are
certifying that the terms, provisions, and conditions for the use of
the License Exception described in the EAR have been met. Please refer
to part 758 of the EAR for clearance of shipments and documenting the
use of License Exceptions.
(c) License Exception groupings and symbols. License Exceptions are
grouped together; each grouping bears a three letter symbol that will
be used for export clearance purposes (see paragraph (d) of this
section). Additionally, each License Exception bears a separate
designator, of three or four letters, for convenience in distinguishing
between License Exceptions and for recordkeeping purposes.
(d) Shipper's Export Declaration. (1) Clearing exports under
License Exceptions. You must enter on any required Shipper's Export
Declaration (SED) the letter code (e.g., LST, TMP) of the grouping of
License Exceptions under which you are exporting. In the case of
License Exceptions available under LST, except License Exception TSR
(Technology and Software under Restriction), the ECCN of the item being
exported must also be entered. Please refer to Sec. 758.3 of the EAR
for the use of SEDs.
(2) Clearing exports when no license is required (NLR). Certain
items are listed on the CCL but do not require a license to certain
destinations under General Prohibitions One, (Exports and Reexports in
the Form Received), Two (Parts and Components Reexports), or Three
(Foreign Produced Direct Product Reexports) (Sec. 732.6 (b)(1), (b)(2),
or (b)(3) of the EAR). (You will have determined this by consulting the
Country Chart and finding no ``X'' in the box(es) at the
intersection(s) of your country of destination and the column headings
assigned to your item by the CCL.) If General Prohibitions Four through
Ten (Sec. 732.6 (b)(4) through (b)(10) of the EAR) also do not apply,
you must clear exports of such items by entering the symbol ``NLR'' in
the appropriate place on the Shippers Export Declaration. The term
``NLR'' represents exports of listed items when no license is required.
Such exports do not require that you qualify for a License Exception.
(e) Destination Control Statement. You may be required to enter an
appropriate Destination Control Statement on commercial documents in
accordance with the Destination Control Statement requirements of
Sec. 758.5 of the EAR.
(f) Recordkeeping. Records of transactions involving exports under
any of the License Exceptions must be maintained in accordance with the
recordkeeping requirements of part 762 of the EAR.
Sec. 740.2 Restrictions on all License Exceptions.
(a) You may not use any License Exception if any one or more of the
following apply:
(1) Your authorization to use a License Exception has been
suspended or revoked, or your intended export does not qualify for a
License Exception.
(2) The export is contrary to a Denial Order. See part 764 of the
EAR for a description of Denial Orders.
(3) You know that the item will be reexported and such reexport is
subject to one of the ten General Prohibitions, is not eligible for a
License Exception, and has not been authorized by BXA.
(4) You know that the export will be used for certain end-uses or
is for certain end-users as provided and prohibited in part 744 of the
EAR.
(5) The item is for surreptitious interception of wire or oral
communications controlled under ECCN 5A980, unless you are a U.S.
Government agency (see Sec. 740.6(b)(2)(ii) of this part, Governments
(GOVT)).
(6) The commodity you are shipping is a specially designed crime
control and detection instrument or equipment as described in
Sec. 742.7 of the EAR and you are not shipping to Iceland, New Zealand,
or countries listed in Country Group A:1 (see Supplement No. 1 to part
740), unless the shipment is authorized under License Exception BAG,
Sec. 740.9(e) of this part (shotguns and shotgun shells).
(b) All License Exceptions are subject to revision, suspension, or
revocation, in whole or in part, without notice. It may be necessary
for BXA to stop a shipment or an export transaction at any stage of its
progress, e.g., in order to prevent an unauthorized export or reexport.
If a shipment is already en route, it may be further necessary to order
the return or unloading of the shipment at any port of call.
Sec. 740.3 License Exceptions based on the Commerce Control List
(LST).
These License Exceptions are listed on the CCL. Each is designated
by a three-letter symbol that appears both in the paragraph of this
section describing its terms and on the CCL. All list-based License
Exceptions use the symbol ``LST'' on shipping documentation for export
clearance purposes.
(a) Shipments of Limited Value (LVS). (1) Scope. License Exception
LVS authorizes the export and reexport in a single shipment of eligible
commodities as identified by ``LVS--$(value limit)'' on the CCL.
(2) Eligible Destinations. This License Exception is available for
all destinations in Country Group B (see
[[Page 12769]]
Supplement No. 1 to part 740), provided that the net value of the
commodities included in the same order and controlled under the same
ECCN entry on the CCL does not exceed the amount specified in the LVS
paragraph for that entry.
(3) Definitions. (i) Order. The term ``order'' as used in this
Sec. 740.3 means a communication from a person in a foreign country, or
that person's representative, expressing an intent to import
commodities from the exporter. Although all of the details of the order
need not be finally determined at the time of export, terms relating to
the kinds and quantities of the commodities to be exported, as well as
the selling prices of these commodities, must be finalized before the
goods can be exported under License Exception LVS.
(ii) Net value: for LVS shipments. The actual selling price of the
commodities that are included in the same order and are controlled
under the same entry on the CCL, less shipping charges, or the current
market price of the commodities to the same type of purchaser in the
United States, whichever is the larger. In determining the actual
selling price or the current market price of the commodity, the value
of containers in which the commodity is being exported may be excluded.
The value for LVS purposes is that of the controlled commodity that is
being exported, and may not be reduced by subtracting the value of any
content that would not, if shipped separately, be subject to licensing.
Where the total value of the containers and their contents must be
shown on Shipper's Export Declarations under one Schedule B Number, the
exporter, in effecting a shipment under this License Exception, must
indicate the ``net value'' of the contained commodity immediately below
the description of the commodity.
(iii) Single shipment. All commodities moving at the same time from
one exporter to one consignee or intermediate consignee on the same
exporting carrier even though these commodities will be forwarded to
one or more ultimate consignees. Commodities being transported in this
manner will be treated as a single shipment even if the commodities
represent more than one order or are in separate containers.
(4) Additional eligibility requirements and restrictions. (i)
Eligible orders. To be eligible for this License Exception, orders must
meet the following criteria:
(A) Orders must not exceed the applicable ``LVS'' dollar value
limits. An order is eligible for shipment under LVS when the ``net
value'' of the commodities controlled under the same entry on the CCL
does not exceed the amount specified in the ``LVS'' paragraph for that
entry. An LVS shipment may include more than one eligible order because
LVS eligibility is based on the ``net value'' of the commodities in
each order, instead of the ``net value'' of the commodities in the
shipment.
(B) Orders may not be split to meet the applicable LVS dollar
limits. An order that exceeds the applicable LVS dollar value limit may
not be misrepresented as two or more orders, or split among two or more
shipments, to give the appearance of meeting the applicable LVS dollar
value limit. However an order that meets all the LVS eligibility
requirements, including the applicable LVS dollar value limit, may be
split among two or more shipments.
(C) Orders must be legitimate. Exporters and consignees may not,
either collectively or individually, structure or adjust orders to meet
the applicable LVS dollar value limits.
(ii) Restriction on annual value of LVS orders. The total value of
exports per calendar year to the same ultimate or intermediate
consignee of commodities classified under a single ECCN may not exceed
12 times the LVS value limit for that ECCN. This annual value limit
applies to shipments to the same ultimate consignee even though the
shipments are made through more than one intermediate consignee. There
is no restriction on the number of orders that may be included in a
shipment, except that the annual value limit per ECCN must not be
exceeded.
(iii) Orders where two or more LVS dollar value limits apply. An
order may include commodities that are controlled under more than one
entry on the CCL. In this case, the net value of the entire order may
exceed the LVS dollar value for any single entry on the CCL. However,
the net value of the commodities controlled under each ECCN entry shall
not exceed the LVS dollar value limit specified for that entry.
Example to paragraph (iii): An order includes commodities valued at
$8,000. The order consists of commodities controlled under two ECCN
entries, each having an LVS value limit of $5000. Commodities in the
order controlled under one ECCN are valued at $3,500 while those
controlled under the other ECCN are valued at $4,500. Since the net
value of the commodities controlled under each entry falls within the
LVS dollar value limits applicable to that entry, the order may be
shipped under this License Exception.
(iv) Prohibition against evasion of license requirements. Any
activity involving the use of this License Exception to evade license
requirements is prohibited. Such devices include, but are not limited
to, the splitting or structuring of orders to meet applicable LVS
dollar value limits, as prohibited by paragraphs (a)(4)(i) (B) and (C)
of this section.
(5) Reexports. Commodities may be reexported under this License
Exception, provided that they could be exported from the United States
to the new country of destination under LVS.
(b) Shipments to Country Group B countries (GBS). License Exception
GBS authorizes exports and reexports to Country Group B (see Supplement
No. 1 to part 740) of those commodities controlled for national
security reasons and identified by ``GBS--Yes'' on the CCL.
(c) Civil end-users (CIV). (1) Scope. License Exception CIV
authorizes exports and reexports of national security controlled items
identified by ``CIV--Yes'' on the CCL only to civil end-users for civil
end-uses in Country Group D:1. (See Supplement No. 1 to part 740.) CIV
may not be used for exports and reexports to military end-users or to
known military uses. Such exports and reexports will continue to
require a license. In addition to conventional military activities,
military uses include any proliferation activities described and
prohibited by part 744 of the EAR. A license is also required for
transfer to military end-users or end-uses in eligible countries of
items exported under CIV.
(d) Technology and software under restriction (TSR). (1) Scope.
License Exception TSR permits exports and reexports of technology and
software subject to national security controls and identified by
``TSR--Yes'' in entries on the CCL only to the destinations in Country
Group B. (See Supplement No. 1 to part 740.) A written assurance is
required from the consignee before exporting under this License
Exception.
(i) Required assurance for export of technology. You may not export
or reexport technology under this License Exception until you have
received from the importer a written assurance that, without a BXA
license or License Exception, the importer will not:
(A) Reexport or release the technology to a national of a country
in Country Groups D:1 or E:2; or
(B) Export to Country Groups D:1 or E:2 the direct product of the
technology, if such foreign produced direct product is subject to
national security controls as identified on the CCL (See General
Prohibition Three, Sec. 736.2(b)(3) of the EAR); or
[[Page 12770]]
(C) If the direct product of the technology is a complete plant or
any major component of a plant, export to Country Groups D:1 or E:2 the
direct product of the technology, if such foreign produced direct
product is subject to national security controls as identified on the
CCL or is subject to State Department controls under the U.S. Munitions
List (22 CFR part 121).
(ii) Required assurance for export of software. You may not export
or reexport software under this License Exception until you have
received from the importer a written assurance that, without a BXA
license or License Exception, the importer will neither:
(A) Reexport or release the software or the source code for the
software to a national of a country in Country Groups D:1 or E:2; nor
(B) Export to Country Groups D:1 or E:2 the direct product of the
software, if such foreign produced direct product is subject to
national security controls as identified on the CCL. (See General
Prohibition Three, Sec. 736.2(b)(3) of the EAR).
(iii) Form of written assurance. The required assurance may be made
in the form of a letter or any other written communication from the
importer, or the assurance may be incorporated into a licensing
agreement that specifically includes the assurances. An assurance
included in a licensing agreement is acceptable only if the agreement
specifies that the assurance will be honored even after the expiration
date of the licensing agreement. If such a written assurance is not
received, License Exception TSR is not applicable and a license is
required. The license application must include a statement explaining
why assurances could not be obtained.
(iv) Other License Exceptions. The requirements in this License
Exception do not apply to the export of technology or software under
other License Exceptions, or to the export of technology or software
included in an application for the foreign filing of a patent, provided
the filing is in accordance with the regulations of the U.S. Patent
Office.
(2) Reserved.
(e) Computers (CTP). (1) Scope. License Exception CTP authorizes
exports and reexports of computers and specially designed components
therefor, exported or reexported separately or as part of a system, and
related equipment therefor when exported or reexported with these
computers as part of a system, for consumption in Computer Tier
countries as provided by this section. You may not use this License
Exception to export or reexport items that you know will be used to
enhance the CTP beyond the eligibility limit allowed to your country of
destination. When evaluating your computer to determine License
Exception CTP eligibility, use the CTP parameter to the exclusion of
other technical parameters for computers classified under ECCN 4A003,
except of parameters specified as Missile Technology (MT) concerns,
4A003.e (equipment performing analog-to-digital conversions exceeding
the limits in ECCN 3A001.a.5), and graphic accelerators or graphic
coprocessors exceeding a ``3-D vector rate'' of 10,000,000. This
License Exception does not authorize export or reexport of such graphic
accelerators or coprocessors, or of computers controlled for MT
reasons.
(2) Computer Tier 1. (i) Eligible countries. The countries that are
eligible to receive exports and reexports under this License Exception
are Australia, Austria, Belgium, Denmark, Finland, France, Germany,
Greece, the Holy See, Iceland, Ireland, Italy, Japan, Liechtenstein,
Luxembourg, Mexico, Monaco, Netherlands, New Zealand, Norway, Portugal,
San Marino, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
(ii) Eligible Computers. The computers eligible for License
Exception CTP are those with a CTP greater than 2,000 MTOPS.
(3) Computer Tier 2. (i) Eligible countries. The countries that are
eligible to receive exports under this License Exception include
Antigua and Barbuda, Argentina, Bahamas, Barbados, Bangladesh, Belize,
Benin, Bhutan, Bolivia, Botswana, Brazil, Brunei, Burkina Faso, Burma,
Burundi, Cambodia, Cameroon, Cape Verde, Central Africa, Chad, Chile,
Colombia, Congo, Costa Rica, Cote d'Ivoire, Cyprus, Czech Republic,
Dominica, Dominican Republic, Ecuador, El Salvador, Equatorial Guinea,
Eritrea, Ethiopia, Fiji, Gabon, Gambia (The), Ghana, Grenada,
Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong,
Hungary, Indonesia, Jamaica, Kenya, Kiribati, Korea (Republic of),
Laos, Lesotho, Liberia, Madagascar, Malawi, Malaysia, Maldives, Mali,
Malta, Marshall Islands, Mauritius, Micronesia (Federated States of),
Mozambique, Namibia, Nauru, Nepal, Nicaragua, Niger, Nigeria, Palau,
Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Rwanda,
St. Kitts & Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome &
Principe, Senegal, Seychelles, Sierra Leone, Singapore, Slovak
Republic, Slovenia, Solomon Islands, Somalia, South Africa, Sri Lanka,
Surinam, Swaziland, Taiwan, Tanzania, Togo, Tonga, Thailand, Trinidad
and Tobago, Tuvalu, Uganda, Uruguay, Venezuela, Western Sahara, Western
Samoa, Zaire, Zambia, and Zimbabwe.
(ii) Eligible computers. The computers eligible for License
Exception CTP are those having a Composite Theoretical Performance
(CTP) greater than 2000, but equal to or less than 10,000 Millions of
Theoretical Operations Per Second (MTOPS).
(4) Computer Tier 3. (i) Eligible countries. The countries that are
eligible to receive exports and reexports under this License Exception
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia,
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina,<SUP>1 Bulgaria,
China (People's Republic of), Comoros, Croatia,<SUP>2 Djibouti, Egypt,
Estonia, Georgia, India, Israel, Jordan, Kazakhstan, Kuwait,
Kyrgyzstan, Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav
Republic of), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan,
Qatar, Romania, Russia, Saudi Arabia, Serbia & Montenegro, Tajikistan,
Tunisia, Turkmenistan, Ukraine, United Arab Emirates, Uzbekistan,
Vanuatu, Vietnam, and Yemen.
\1\ Except as provided in 31 CFR part 585.
\2\ Except as provided in 31 CFR part 585.
---------------------------------------------------------------------------
(ii) Eligible computers. The computers eligible for License
Exception CTP are those having a Composite Theoretical Performance
(CTP) greater than 2,000 Millions of Theoretical Operations Per Second
(MTOPS), but less than or equal to 7,000 MTOPS.
(iii) Eligible exports. Only exports and reexports to permitted
end-users and end-uses located in countries in Computer Tier 3. License
Exception CTP does not authorize exports and reexports to Computer Tier
3 for military end-users and end-uses and nuclear, chemical,
biological, or missile end-users and end-uses defined in part 744 of
the EAR. Exports and reexports under this License Exception may not be
made to known military end-users or to known military end-uses or known
proliferation end-uses or end-users defined in part 744 of the EAR.
Such exports and reexports will continue to require a license and will
be considered on a case-by-case basis. Retransfers to military end-
users or end-uses and defined proliferation end-users and end-uses in
eligible countries are strictly prohibited without prior authorization.
(5) Restrictions. (i) Computers eligible for License Exception CTP
may not be accessed either physically or computationally by nationals
of Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria, except that
commercial
[[Page 12771]]
consignees described in Sec. 742.12 of the EAR are prohibited only from
giving such nationals user-accessible programmability.
(ii) Computers, software and specially designed technology eligible
for License Exception CTP may not be reexported/retransferred without
prior authorization from BXA i.e., a license, a permissive reexport,
another License Exception, or ``No License Required''. This restriction
must be conveyed to the consignee, via the Destination Control
Statement, see Sec. 758.5 of the EAR.
(6) Recordkeeping requirements. In addition to the recordkeeping
requirements in part 762 of the EAR, you must keep records of each
export under License Exception CTP. These records will be made
available to the U.S. Government on request. The records must include
the following information:
(i) Date of shipment;
(ii) Name and address of the end-user and each intermediate
consignee;
(iii) CTP of each computer in shipment;
(iv) Volume of computers in shipment;
(v) Dollar value of shipment; and
(vi) End-use.
Sec. 740.4 Temporary imports, exports, and reexports (TMP).
These License Exceptions authorize various temporary exports and
reexports (TEMP); exports and reexports of items temporarily in the
United States (TUS); and exports and reexports of beta test software
(BETA). License Exceptions in Sec. 740.4 of this part use the symbol
``TMP'' for export clearance purposes.
(a) Temporary exports (TEMP). (1) Scope. You may export and
reexport commodities and software for temporary use abroad (including
use in international waters) subject to the conditions and exclusions
described in paragraph (a)(4) of this section. Commodities and software
shipped under this License Exception must be returned to the country
from which they were exported as soon as practicable but, except in
circumstances described in this section, no later than one year from
the date of export. This requirement does not apply if the commodities
and software are consumed or destroyed in the normal course of
authorized temporary use abroad or an extension or other disposition is
permitted by the EAR or in writing by BXA.
(2) Eligible commodities and software. The following commodities
and software are eligible to be shipped under this License Exception:
(i) Tools of trade. Usual and reasonable kinds and quantities of
commodities and software for use by employees of the exporter in a
lawful enterprise or undertaking of the exporter. Eligible commodities
and software may include, but are not limited to, such equipment as is
necessary to commission or service goods, provided that the equipment
is appropriate for this purpose and that all goods to be commissioned
or serviced are of foreign origin, or if subject to the EAR, have been
legally exported or reexported. The commodities and software must
remain under the effective control of the exporter or the exporter's
employee. The shipment of commodities and software may accompany the
individual departing from the United States or may be shipped
unaccompanied within one month before the individual's departure from
the United States, or at any time after departure. No tools of the
trade may be taken to Country Group E:2, and only equipment necessary
to commission or service goods may be taken as tools of trade to
Country Group D:1. (See Supplement No. 1 to part 740.)
(ii) Kits consisting of replacement parts. Kits consisting of
replacement parts may be exported or reexported under this section to
all destinations, except Country Group E:2 (see Supplement No. 1 to
part 740), provided that:
(A) The parts would qualify for shipment under paragraph (c) of
this section if exported as one-for-one replacements;
(B) The kits remain under effective control of the exporter or an
employee of the exporter; and
(C) All parts in the kit are returned, except that one-for-one
replacements may be made in accordance with the requirements of License
Exception RPL and the defective parts returned (see PTS, Sec. 740.5(a)
of this part).
(iii) Exhibition and demonstration in Country Group B. Commodities
and software for exhibition or demonstration in Country Group B (see
Supplement No. 1 to part 740) may be exported or reexported under this
provision provided that the exporter maintains ownership of the
commodities and software while they are abroad and provided that the
exporter, an employee of the exporter, or the exporter's designated
sales representative retains effective control over the commodities and
software while they are abroad. The commodities and software may not be
used for their intended purpose while abroad, except to the minimum
extent required for effective demonstration. The commodities and
software may not be exhibited or demonstrated at any one site more than
120 days after installation and debugging, unless authorized by BXA.
However, before or after an exhibition or demonstration, pending
movement to another site, return to the United States or the foreign
reexporter, or BXA approval for other disposition, the commodities and
software may be placed in a bonded warehouse or a storage facility
provided that the exporter retains effective control over their
disposition. The export documentation for this type of transaction must
show the U.S. exporter as ultimate consignee, in care of the person who
will have control over the commodities and software abroad.
(iv) Inspection and calibration. Commodities to be inspected,
tested, calibrated or repaired abroad.
(v) Containers. Containers for which another License Exception is
not available and that are necessary for export of commodities.
However, this License Exception does not authorize the export of the
container's contents, which, if not exempt from licensing, must be
separately authorized for export under either a License Exception or a
license.
(vi) Broadcast material. (A) Video tape containing program material
recorded in the country of export to be publicly broadcast in another
country.
(B) Blank video tape (raw stock) for use in recording program
material abroad.
(vii) Assembly in Mexico. Commodities to be exported to Mexico
under Customs entries that require return to the United States after
processing, assembly, or incorporation into end products by companies,
factories, or facilities participating in Mexico's in-bond
industrialization program (Maquilladora), provided that all resulting
end-products (or the commodities themselves) are returned to the United
States.
(viii) News media. (A) Commodities necessary for news-gathering
purposes (and software necessary to use such commodities) may accompany
``accredited'' news media personnel (i.e., persons with credentials
from a news gathering or reporting firm) to Country Groups D:1 or E:2
(see Supplement No. 1 to part 740) if the commodities:
(1) Are retained under ``effective control'' of the exporting news
gathering firm;
(2) Remain in the physical possession of the news media personnel.
The term physical possession for purposes of this paragraph
(a)(2)(viii), news media, is defined as maintaining effective measures
to prevent unauthorized access (e.g., securing equipment in
[[Page 12772]]
locked facilities or hiring security guards to protect the equipment);
and
(3) Are removed with the news media personnel at the end of the
trip.
(B) When exporting under this paragraph (a)(2)(viii) from the
United States, the exporter must send a copy of the packing list or
similar identification of the exported commodities, to: U.S. Department
of Commerce, Bureau of Export Administration, Office of Enforcement
Support, Room H4069, 14th Street and Constitution Avenue, N.W.,
Washington, DC 20230, or any of its field offices, specifying the
destination and estimated dates of departure and return. The Office of
Export Enforcement (OEE) may spot check returns to assure that this
License Exception is being used properly.
(C) Commodities or software necessary for news-gathering purposes
that accompany news media personnel to all other destinations shall be
exported or reexported under paragraph (a)(2)(i), tools of trade, of
this section if owned by the news gathering firm, or if they are
personal property of the individual news media personnel. Note that
paragraphs (a)(2)(i), tools of trade and (a)(2)(viii), news media, of
this section do not preclude independent ``accredited'' contract
personnel, who are under control of news gathering firms while on
assignment, from utilizing these provisions, provided that the news
gathering firm designate an employee of the contract firm to be
responsible for the equipment.)
(3) Special restrictions. (i) Destinations. (A) No commodity or
software may be exported under this License Exception to Country Group
E:2 (see Supplement No. 1 to part 740) except as permitted by paragraph
(a)(2)(viii), news media, of this section;
(B) No commodity or software may be exported under this License
Exception to Country Group D:1 (see Supplement No. 1 to part 740)
except:
(1) Commodities and software exported under paragraph (a)(2)(viii),
news media, of this section;
(2) Commodities and software exported under paragraph (a)(2)(i),
tools of trade, of this section; and
(3) Commodities exported as kits of replacement parts, consistent
with the requirements of paragraph (a)(2)(ii) of this section.
(C) These destination restrictions apply to temporary exports to
and for use on any vessel, aircraft or territory under ownership,
control, lease, or charter by any country in Country Group D:1 or E:2,
or any national thereof. (See Supplement No. 1 to part 740.)
(ii) Ineligible commodities or software. Commodities or software
that will be used outside of Country Group A:4 (Nuclear Suppliers
Group) (see Supplement No. 1 to part 740) either directly or indirectly
in any sensitive nuclear activity as described in Sec. 744.2 of the EAR
may not be exported or reexported to any destination under this License
Exception.
(iii) Use or disposition. No commodity or software may be exported
or reexported under this License Exception if:
(A) An order to acquire the commodity or software has been received
before shipment;
(B) The exporter has prior knowledge that the commodity or software
will stay abroad beyond the terms of this License Exception; or
(C) The commodity or software is for lease or rental abroad.
(4) Return or disposal of commodities and software. All commodities
and software exported or reexported under this License Exception must,
if not consumed or destroyed in the normal course of authorized
temporary use abroad, be returned as soon as practicable but no later
than one year after the date of export, to the United States or other
country from which the commodities and software were exported under
this License Exception, or shall be disposed of or retained in one of
the following ways:
(i) Permanent export or reexport. If the exporter or the reexporter
wishes to sell or otherwise dispose of the commodities or software
abroad, except as permitted by this or other applicable License
Exception, the exporter must request authorization by submitting a
license application to BXA at the address listed in part 748 of the
EAR. (See part 748 of the EAR for more information on license
applications.) The request should comply with all applicable provisions
of the EAR covering export directly from the United States to the
proposed destination. The request must also be supported by any
documents that would be required in support of an application for
export license for shipment of the same commodities or software
directly from the United States to the proposed destination. BXA will
advise the exporter of its decision.
(ii) Use of a license. An outstanding license may also be used to
dispose of commodities or software covered by the License Exception
described in this section, provided that the outstanding license
authorizes direct shipment of the same commodity or software to the
same new ultimate consignee in the new country of destination.
(iii) Authorization to retain abroad beyond one year. If the
exporter wishes to retain a commodity or software abroad beyond the 12
months authorized by paragraph (a) of this section, the exporter must
request authorization by submitting Form BXA-748P, Multipurpose
Application, 90 days prior to the expiration of the 12 month period.
The request must be sent to BXA at the address listed in part 748 of
the EAR and should include the name and address of the exporter, the
date the commodities or software were exported, a brief product
description, and the justification for the extension. If BXA approves
the extension request, the exporter will receive authorization for a
one-time extension not to exceed six months. BXA normally will not
allow an extension for commodities or software that have been abroad
more than 12 months, nor will a second six month extension be
authorized. Any request for retaining the commodities or software
abroad for a period exceeding 18 months must be made in accordance with
the requirements of paragraph (a)(4)(i) of this section.
(5) Reexports. Commodities and software legally exported from the
United States may be reexported to a new country(ies) of destination
under this License Exception provided its terms and conditions are met
and the commodities and software are returned to the country from which
the reexport occurred.
(b) Exports of items temporarily in the United States (TUS).
Scope. License Exception TUS, describes the conditions for
exporting foreign-origin items temporarily in the United States.
Specifically, this License Exception includes the export of items
moving in transit through the United States, imported for display at a
U.S. exhibition or trade fair, returned because unwanted, or returned
because refused entry.
Note 1 to paragraph (b) of this section: A commodity withdrawn
from a bonded warehouse in the United States under a ``withdrawal
for export'' customs entry is considered as ``moving in transit''.
It is not considered as ``moving in transit'' if it is withdrawn
from a bonded warehouse under any other type of customs entry or if
its transit has been broken for a processing operation, regardless
of the type of customs entry.
Note 2 to paragraph (b) of this section: Items shipped on board
a vessel or aircraft and passing through the United States from one
foreign country to another may be exported without a license
provided that (a) while passing in transit through the United
States, they have not been unladen from the
[[Page 12773]]
vessel or aircraft on which they entered, and (b) they are not
originally manifested to the United States.)
(1) Items moving in transit through the United States. Subject to
the following conditions, this License Exception authorizes export of
items moving in transit through the United States under a
Transportation and Exportation (T. & E.) customs entry or an Immediate
Exportation (I.E.) customs entry made at a U.S. Customs Office.
(i) Items controlled for national security, nuclear proliferation,
missile technology, or chemical and biological weapons reasons may not
be exported to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 to
part 740), respectively, under License Exception TUS.
(ii) Items may not be exported to Country Group E:2 under this
License Exception.
(iii) The following may not be exported in transit from the United
States under License Exception TUS:
(A) Commodities shipped to the United States under an International
Import Certificate, Form BXA-645P;
(B) Chemicals controlled under ECCN 1C350; or
(C) Horses for export by sea (refer to short supply controls in
part 754 of the EAR).
(iv) The provisions of this License Exception apply to all
shipments from Canada moving in transit through the United States to
any foreign destination, regardless of the nature of the commodities or
software or their origin. For such shipments the customs office at the
U.S. port of export will require a copy of Form B-13, Canadian Customs
Entry, certified or stamped by Canadian customs authorities, except
where the shipment is valued at less than $50.00. (In transit shipments
originating in Canada that are exempt from U.S. licensing, or made
under a U.S. license or applicable U.S. License Exception other than
TUS do not require this form.) The commodity or software description,
quantity, ultimate consignee, country of ultimate destination, and all
other pertinent details of the shipment must be the same on a required
Form B-13, as on Commerce Form 7513,<SUP>3 or when Form 7513 is not
required, must be the same as on Customs Form 7512. When there is a
material difference, a corrected Form B-13 authorizing the shipment is
required.
\3\ The complete names of these forms are: Commerce Form 7513,
``Shipper's Export Declaration for Intransit Goods''; Customs Form
7512, ``Transportation Entry and Manifest of Goods Subject to
Customs Inspection and Permit.''
---------------------------------------------------------------------------
(2) Items imported for display at U.S. exhibitions or trade fairs.
Subject to the following conditions, License Exception TUS authorizes
the export of items that were imported into the United States for
display at an exhibition or trade fair and were either entered under
bond or permitted temporary free import under bond providing for their
export and are being exported in accordance with the terms of that
bond.
(i) Items may be exported to the country from which imported into
the United States. However, items originally imported from Cuba or
North Korea may not be exported unless the U.S. Government had licensed
the import from that country.
(ii) Items may be exported to any destination other than the
country from which imported except:
(A) Items imported into the United States under an International
Import Certificate;
(B) Exports to Country Group E:2 (see Supplement No. 1 to part
740); or
(C) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 1
to part 740) of items controlled for national security, missile
technology, chemical and biological weapons reasons, or nuclear
proliferation, respectively.
(3) Return of unwanted shipments. A foreign-origin item may be
returned under this License Exception to the country from which it was
imported if its characteristics and capabilities have not been enhanced
while in the United States. No foreign-origin items may be returned to
Cuba, Libya, or North Korea.
(4) Return of shipments refused entry. Shipments of items refused
entry by the U.S. Customs Service, the Food and Drug Administration, or
other U.S. Government agency may be returned to the country of origin,
except to:
(i) A destination in Cuba, Libya, or North Korea; or
(ii) A destination from which the shipment has been refused entry
because of the Foreign Assets Control Regulations of the Treasury
Department, unless such return is licensed or otherwise authorized by
the Treasury Department, Office of Foreign Assets Control (31 CFR part
500).
(c) Exports of beta test software (BETA). (1) Scope. This License
Exception authorizes exports and reexports to eligible countries of
beta test software intended for distribution to the general public.
(2) Eligible countries. The countries that are eligible to receive
exports and reexports under License Exception BETA are all countries
except those Country Groups E:2.
(3) Eligible software. All software that is controlled by the CCL
(part 774 of the EAR), and under Commerce licensing jurisdiction, is
eligible for export and reexport under this License Exception, subject
to the restrictions in this section.
(4) Conditions for use. Any beta test software program may be
exported or reexported to eligible countries if all of the conditions
under this section are met:
(i) The software producer intends to market the software to the
general public after completion of the beta testing, as described in
the General Software Note found in Supplement No. 2 to part 774 of the
EAR;
(ii) The software producer provides the software to the testing
consignee free-of-charge or at a price that does not exceed the cost of
reproduction and distribution; and
(iii) The software is designed for installation by the end-user
without further substantial support from the supplier.
(5) Importer Statement. Prior to shipping any eligible software
under BETA, the exporter or reexporter must obtain the following
statement from the testing consignee, which may be included in a
contract, non-disclosure agreement, or other document that identifies
the importer, the software to be exported, the country of destination,
and the testing consignee.
We certify that this beta test software will only be used for
beta testing purposes, and will not be rented, leased, sold,
sublicensed, assigned, or otherwise transferred. Further, we certify
that we will not transfer or export any product, process, or service
that is the direct product of the beta test software.
(6) Use limitations. Only testing consignees that provide the
importer statement required by paragraph (c)(5) of this section may
execute any software received under this License Exception.
(7) Return or disposal of software. All beta test software exported
under this License Exception must be destroyed abroad or returned to
the exporter within 30 days of the end of the beta test period as
defined by the software producer or, if the software producer does not
define a test period, within 30 days of completion of the consignee's
role in the test. Among other methods, this requirement may be
satisfied by a software module that will destroy the software and all
its copies at or before the end of the beta test period.
Sec. 740.5 Servicing and replacement of parts and equipment (RPL).
These License Exceptions authorize exports and reexports associated
with one-for-one replacement of parts (PTS) or servicing and
replacement of equipment (SNR). The symbol ``RPL'' is
[[Page 12774]]
used on shipping documentation for export clearance purposes.
(a) Parts (PTS). (1) Scope. This License Exception authorizes the
export and reexport of one-for-one replacement parts for previously
exported equipment.
(2) One-for-one replacement of parts. (i) The term ``replacement
parts'' as used in this section means parts needed for the immediate
repair of equipment, including replacement of defective or worn parts.
(It includes subassemblies but does not include test instruments or
operating supplies). (The term ``subassembly'' means a number of
components assembled to perform a specific function or functions within
a commodity. One example would be printed circuit boards with
components mounted thereon. This definition does not include major
subsystems such as those composed of a number of subassemblies.) Items
that improve or change the basic design characteristics, e.g., as to
accuracy, capability, performance or productivity, of the equipment
upon which they are installed, are not deemed to be replacement parts.
For kits consisting of replacement parts, consult Sec. 740.4(a)(2)(ii)
of this part (TEMP).
(ii) Parts may be exported only to replace, on a one-for-one basis,
parts contained in commodities that were: legally exported from the
United States; legally reexported; or made in a foreign country
incorporating authorized U.S.-origin parts. The conditions of the
original U.S. authorization must not have been violated. Accordingly,
the export of replacement parts may be made only by the party who
originally exported or reexported the commodity to be repaired, or by a
party that has confirmed the appropriate authority for the original
transaction.
(iii) The parts to be replaced must either be destroyed abroad or
returned promptly to the person who supplied the replacement parts, or
to a foreign firm that is under the effective control of that person.
(3) Exclusions. (i) No replacement parts may be exported under this
License Exception to repair a commodity exported under a license if
that license included a condition that any subsequent replacement parts
must be exported only under a license.
(ii) No parts may be exported under this License Exception to be
held abroad as spare parts or equipment for future use. Replacement
parts may be exported to replace spare parts that were authorized to
accompany the export of equipment, as those spare parts are utilized in
the repair of the equipment. This will allow maintenance of the stock
of spares at a consistent level as parts are used.
(iii) No parts may be exported under PTS to any destination except
Iceland, New Zealand, or the countries listed in Country Group A:1 (see
Supplement No. 1 to part 740) if the item is to be incorporated into or
used in nuclear weapons, nuclear explosive devices, nuclear testing
related to activities described in Sec. 744.2(a) of the EAR, the
chemical processing of irradiated special nuclear or source material,
the production of heavy water, the separation of isotopes of source and
special nuclear materials, or the fabrication of nuclear reactor fuel
containing plutonium, as described in Sec. 744.2(a) of the EAR.
(iv) No replacement parts shall be exported under this License
Exception to Cuba, Iran, Iraq, Sudan, Syria, Libya, or North Korea
(countries designated by the Secretary of State as supporting acts of
international terrorism) if the commodity to be repaired is an
``aircraft'' (as defined in part 772 of the EAR) or national security
controlled commodity.
(v) The conditions described in this paragraph (a)(3) relating to
replacement of parts do not apply to reexports to a foreign country of
parts as replacements in foreign-origin products, if at the time the
replacements are furnished, the foreign-origin product is eligible for
export to such country under any of the License Exceptions in this part
or the exceptions in Sec. 734.4(b)(2) (ii) and (iii) of the EAR.
(4) Reexports. Parts exported from the United States may be
reexported to a new country of destination, provided that the
restrictions described in paragraphs (a) (2) and (3) of this section
are met. A party reexporting U.S.-origin one-for-one replacement parts
shall ensure that the commodities being repaired were shipped to their
present location in accordance with U.S. law and continue to be legally
used, and that either before or promptly after reexport of the
replacement parts, the replaced parts are either destroyed or returned
to the United States, or to the foreign firm in Country Group B (see
Supplement No. 1 to part 740) that shipped the replacement parts.
(b) Servicing and Replacement (SNR). (1) Scope. This License
Exception SNR authorizes the export and reexport of items that were
returned to the United States for servicing and the replacement of
defective or unacceptable U.S.-origin commodities and software.
(2) Commodities and software sent to a United States or foreign
party for servicing. (i) Definition. ``Servicing'' as used in this
section means inspection, testing, calibration or repair, including
overhaul and reconditioning. The servicing shall not have improved or
changed the basic characteristics, e.g., as to accuracy, capability,
performance, or productivity of the commodity or software as originally
authorized for export or reexport.
(ii) Return of serviced commodities and software. When the serviced
commodity or software is returned, it may include any replacement or
rebuilt parts necessary to its repair and may be accompanied by any
spare part, tool, accessory, or other item that was sent with it for
servicing.
(iii) Commodities and software imported from Country Group D:1
except the PRC. Commodities and software legally exported or reexported
to a consignee in Country Group D:1 (except the People's Republic of
China (PRC)) (see Supplement No. 1 to part 740) that are sent to the
United States or a foreign party for servicing may be returned under
this License Exception to the country from which it was sent, provided
that both of the following conditions are met:
(A) The exporter making the shipment is the same person or firm to
whom the original license was issued; and
(B) The end-use and the end-user of the serviced commodities or
software and other particulars of the transaction, as set forth in the
application and supporting documentation that formed the basis for
issuance of the license have not changed.
(iv) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria. No
repaired commodity or software may be exported or reexported to Cuba,
Iran, Iraq, Libya, North Korea, Sudan, or Syria under this section.
(3) Replacements for defective or unacceptable U.S.-origin
equipment.
(i) Subject to the following conditions, commodities or software
may be exported or reexported to replace defective or otherwise
unusable (e.g., erroneously supplied) items.
(A) The commodity or software to be replaced must have been
previously exported or reexported in its present form under a license
or authorization granted by BXA.
(B) No commodity or software may be exported or reexported to
replace equipment that is worn out from normal use, nor may any
commodity or software be exported to be held in stock abroad as spare
equipment for future use.
(C) The replacement item may not improve the basic characteristic,
e.g., as to accuracy, capability, performance, or productivity, of the
equipment as
[[Page 12775]]
originally approved for export or reexport under a license issued by
BXA.
(D) No shipment may be made to Cuba, Iran, Iraq, Libya, North
Korea, Sudan, or Syria, or to any other destination to replace
defective or otherwise unusable equipment owned or controlled by, or
leased or chartered to, a national of any of those countries.
(ii) Special conditions applicable to exports to Country Group B
and Country Group D:1. (See Supplement No. 1 to part 740.) In addition
to the general conditions in paragraph (b)(3)(i) of this section, the
following conditions apply to exports or reexports of replacements for
defective or unacceptable U.S.-origin commodities or software to a
destination in Country Group B or Country Group D:1:
(A) By making such an export or reexport, the exporter represents
that all the requirements of paragraph (c) of this section have been
met and undertakes to destroy or return the replaced parts as provided
in paragraph (b)(3)(ii)(C) of this section.
(B) The defective or otherwise unusable equipment must be replaced
free of charge, except for transportation and labor charges. If
exporting to the countries listed in Country Group D:1 (except the
PRC), the exporter shall replace the commodity or software within the
warranty period or within 12 months of its shipment to the ultimate
consignee in the country of destination, whichever is shorter.
(C) The commodity or software to be replaced must either be
destroyed abroad or returned to the United States, or to a foreign firm
in Country Group B that is under the effective control of the U.S.
exporter, or to the foreign firm that is providing the replacement part
or equipment. The destruction or return must be effected before, or
promptly after, the replacement item is exported from the United
States.
(D) A party reexporting replacements for defective or unacceptable
U.S.-origin equipment must ensure that the commodities or software
being replaced were shipped to their present location in accordance
with U.S. law and continue to be legally used.
Sec. 740.6 Governments and international organizations (GOV).
These Licenses Exceptions authorize exports and reexports for
international nuclear safeguards (SAFE); U.S. government agencies or
personnel, and agencies of cooperating governments (GOVT). The License
Exceptions in Sec. 740.6 of this part use the symbol ``GOV'' for export
clearance purposes.
(a) International Safeguards (SAFE). (1) Scope. You may export and
reexport commodities or software to the International Atomic Energy
Agency (IAEA) and the European Atomic Energy Community (Euratom), and
reexports by IAEA and Euratom for official international safeguard use,
as follows:
(i) Commodities or software consigned to the IAEA at its
headquarters in Vienna, or field offices in Toronto, Ontario, Canada or
Tokyo, Japan for official international safeguards use. The IAEA is an
international organization that establishes and administers safeguards
designed to ensure that special nuclear materials and other related
nuclear facilities, services, and information are not diverted from
peaceful purposes to non-peaceful purposes.
(ii) Commodities or software consigned to the Euratom Safeguards
Directorate in Luxembourg, Luxembourg for official international
safeguards use. Euratom is an international organization of European
countries with headquarters in Luxembourg. Euratom establishes and
administers safeguards designed to ensure that special nuclear
materials and other related nuclear facilities, services, and
information are not diverted from peaceful purposes to non-peaceful
purposes.
(iii) Commodities consigned to IAEA or Euratom may be reexported to
any country for IAEA or Euratom international safeguards use provided
that IAEA or Euratom maintains control of or otherwise safeguards the
commodities and returns the commodities to the locations described in
paragraphs (a)(1)(i) and (a)(1)(ii) of this section when they become
obsolete, are no longer required, or are replaced.
(iv) Commodity or software shipments may be made by commercial
companies under direct contract with IAEA or Euratom, or by Department
of Energy National Laboratories as directed by the Department of State
or the Department of Energy.
(v) The monitoring functions of IAEA and Euratom are not subject to
the restrictions on prohibited safeguarded nuclear activities described
in Sec. 744.2(a)(3) of the EAR.
(vi) When commodities or software originally consigned to IAEA or
Euratom are no longer in IAEA or Euratom official safeguards use, such
commodities may only be disposed of in accordance with the regulations
in the EAR.
(2) Exclusions. No computers with a CTP greater than 10,000 MTOPS
may be exported or reexported to countries listed in Computer Tiers 3
or 4 under License Exception SAFE. See Sec. 742.12 of the EAR for a
complete list of the countries within Computer Tiers 3 and 4.
(b) Governments (GOVT). (1) Scope. License Exception (GOVT)
authorizes exports and reexports of the items listed in paragraph
(b)(2) of this section to personnel and agencies of the U.S. Government
or agencies of cooperating governments.
(2) Eligibility. (i) Items for personal use by personnel and
agencies of the U.S. Government. License Exception GOVT is available
for items in quantities sufficient only for the personal use of members
of the U.S. Armed Forces or civilian personnel of the U.S. Government
(including U.S. representatives to public international organizations),
and their immediate families and servants. Items for personal use
include household effects, food, beverages, and other daily
necessities.
(ii) Items for official use by personnel and agencies of the U.S.
Government. This License Exception is available for items consigned to
and for the official use of any agency of the U.S. Government.
(iii) Items for official use within national territory by agencies
of cooperating governments. This License Exception is available for all
items consigned to and for the official use of any agency of a
cooperating government within the territory of any cooperating
government, except:
(A) Computers with a CTP greater than 10,000 MTOPS when destined
for Argentina, Hong Kong, South Korea, Singapore, or Taiwan;
(B) Items identified on the Commerce Control List as controlled for
missile technology (MT), chemical and biological warfare (CB), or
nuclear nonproliferation (NP) reasons; or
(C) Regional stability items controlled under Export Control
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002,
7D001, 7E001, 7E002, and 7E101, as described in Sec. 742.6(a)(1) of the
EAR.
(iv) Diplomatic and consular missions of a cooperating government.
This License Exception is available for all items consigned to and for
the official use of a diplomatic or consular mission of a cooperating
government located in any country in Country Group B (see Supplement
No. 1 to part 740), except:
(A) Computers with a CTP greater than 10,000 MTOPS when destined
for Argentina, Hong Kong, South Korea, Singapore, or Taiwan;
(B) Items identified on the Commerce Control List as controlled for
missile technology (MT), chemical and biological warfare (CB), or
nuclear nonproliferation (NP) reasons; or
[[Page 12776]]
(C) Regional stability items controlled under Export Control
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002,
7D001, 7E001, 7E002, and 7E101, as described in Sec. 742.6(a)(1) of the
EAR.
(3) Definitions. (i) ``Agency of the U.S. Government'' includes all
civilian and military departments, branches, missions, government-owned
corporations, and other agencies of the U.S. Government, but does not
include such national agencies as the American Red Cross or
international organizations in which the United States participates
such as the Organization of American States. Therefore, shipments may
not be made under this License Exception to these non-government
national or international agencies, except as provided in (b)(2)(i) of
this section for U.S. representatives to these organizations.
(ii) ``Agency of a cooperating government'' includes all civilian
and military departments, branches, missions, and other governmental
agencies of a cooperating national government. Cooperating governments
are the national governments of countries listed in Country Group A:1
(see Supplement No. 1 to part 740) and the national governments of
Argentina, Austria, Finland, Ireland, Korea (Republic of), Singapore,
Sweden, and Switzerland.
Sec. 740.7 Gift parcels and humanitarian donations (GFT).
(a) Gift parcels (GIFT). (1) Scope. This License Exception (GIFT)
authorizes exports and reexports of gift parcels by an individual
(donor) addressed to an individual, or a religious, charitable or
educational organization (donee) located in any destination for the use
of the donee or the donee's immediate family (and not for resale). The
gift parcel must be provided free of charge to the donee. However,
payment by the donee of any handling charges or of any fees levied by
the importing country (e.g., import duties, taxes, etc.) is not
considered to be a cost to the donee for purposes of this definition of
``gift parcel.'' <SUP>4
\4\ Many foreign countries permit the entry, duty-free, of gift
parcels that conform to regulations regarding contents and marking.
To secure this advantage, the sender should show the words ``U.S.A.
Gift Parcel'' on the addressee side of the package and on any
required customs declarations. Information regarding the foreign
postal regulations is available at local post offices. Senders of
gift parcels who wish information regarding import duties of a
foreign country should contact the nearest Commercial Office,
Consulate or Embassy of the country concerned.
Note to paragraph (a) of this section: A gift parcel, within the
context of this License Exception GIFT, does not include multiple
parcels exported in a single shipment for delivery to individuals
residing in a foreign country. Such multiple gift parcels, if
subject to the General Prohibitions described in Sec. 734.2(b) of
the EAR, must be licensed by BXA. (See Sec. 748.9(e) of the EAR for
---------------------------------------------------------------------------
licensing of multiple gift parcels).
(2) Commodity, value and other limitations. (i) Eligible
commodities. The commodities eligible for this License Exception are as
follows:
(A) The commodity must not be controlled for chemical and
biological weapons (CB), missile technology (MT), national security
(NS), or nuclear proliferation (NP) (see Commerce Control List, part
774 of the EAR); and
(B) The commodity must be of a type and in quantities normally
given as gifts between individuals.
(1) For Cuba, the only commodities that may be included in a gift
parcel are the following items from Supplement No. 1 to part 746 of the
EAR: food, vitamins, seeds, medicines, medical supplies and devices,
hospital supplies and equipment, equipment for the handicapped,
clothing, personal hygiene items, veterinary medicines and supplies,
fishing equipment and supplies, soap-making equipment, and in addition
receive-only radio equipment for reception of commercial/civil AM/FM
and short wave publicly available frequency bands, and batteries for
such equipment.
(2) For all other destinations, eligible commodities include all
items described in paragraph (a)(2)(i)(B)(1) of this section as well as
all other items normally sent as gifts. Gold bullion, gold taels, and
gold bars are prohibited as are items intended for resale or reexport.
Example to paragraph (a) of this section. A watch or piece of
jewelry is normally sent as a gift. However, multiple watches,
either in one package or in subsequent shipments, would not qualify
for such gift parcels because the quantity exceeds that normally
given between individuals. Similarly, a sewing machine or bicycle,
within the dollar limits of this License Exception, may be an
appropriate gift. However, subsequent shipments of the same item to
the same donee would not be a gift normally given between
individuals.
(3) For purposes of paragraph (a)(2)(ii)(B) of this section,
clothing is appropriate, except that export of military wearing apparel
to Country Group D:1 or E:2 under this License Exception is
specifically prohibited, regardless of whether all distinctive U.S.
military insignia, buttons, and other markings are removed.
(ii) Import requirements. The commodities must be acceptable in
type and quantity by the recipient country for import as gifts.
Commodities exceeding the import limits may not be included in gift
parcels.
(iii) Frequency. Except for gift parcels of food to Cuba, not more
than one gift parcel may be sent from the same donor to the same donee
in any one calendar month. Parties seeking authorization to exceed this
limit due to compelling humanitarian concerns (e.g., gifts of medicine
to relatives) should submit a license application (BXA-748P) with
complete justification.
(iv) Value. The combined total domestic retail value of all
commodities included in a gift parcel may not exceed $400, except for
gift parcels to Cuba where the value of non-food items may not exceed
$200. There is no dollar value limit on food contained in a gift parcel
to Cuba.
(3) How to export gift parcels. (i) A gift parcel must be sent
directly to the donee by the individual donor, or for such donor by a
commercial or other gift-forwarding service or organization. Each gift
parcel must show, on the outside wrapper, the name and address of the
donor, as well as the name and address of the donee, regardless of
whether sent by the donor or by a forwarding service.
(ii) Each parcel must have the notation ``GIFT--Export License Not
Required'' written on the addressee side of the package and the symbol
``GFT'' written on any required customs declaration.
(b) Humanitarian donations (NEED). (1) Scope. License Exception
NEED authorizes exports by groups or organizations of donations to meet
basic human needs when those groups or organizations have experience in
maintaining a verifiable system of distribution that ensures delivery
to the intended beneficiaries.
(2) Basic human needs. Under License Exception NEED, basic human
needs are defined as those requirements essential to individual well-
being: health, food, clothing, shelter, and education. These needs are
considered to extend beyond those of an emergency nature and those that
meet direct needs for mere subsistence.
(3) Eligible donors. Eligible donors are U.S. charitable
organizations that have an established record of involvement in
donative programs and experience in maintaining and verifying a system
of distribution to ensure delivery of commodities and software to the
intended beneficiaries. Eligible
[[Page 12777]]
distribution arrangements may consist of any one or more of the
following:
(i) A permanent staff maintained in the recipient country to
monitor the receipt and distribution of the donations to the intended
beneficiaries;
(ii) Periodic spot-checks in the recipient country by members of
the exporter's staff; or
(iii) An agreement to utilize the services of a charitable
organization that has a monitoring system in place.
(4) Donations. To qualify for export under this License Exception,
the items must be provided free of charge to the beneficiary. The
payment by the beneficiary, however, of normal handling charges or fees
levied by the importing country (e.g., import duties, taxes, etc.) is
not considered to be a cost to the beneficiary for purposes of this
section.
(5) Ineligible commodities and software. The following commodities
and software are not eligible for this License Exception:
(i) Commodities and software controlled for national security,
chemical or biological weapons, and nuclear non-proliferation, missile
technology or crime control reasons (see supplement No. 1 to part 774
of the EAR);
(ii) Exports for large-scale projects of the kind associated with
comprehensive economic growth, such as dams and hydroelectric plants;
or
(iii) Exports to Cuba of medical items excluded by Sec. 746.2(a)(3)
of the EAR.
(6) Eligible items. Eligible commodities and software are those
listed in Supplement No. 2 to part 740.
(7) Additional recordkeeping requirements. In addition to the
recordkeeping requirements in part 762 of the EAR, donors must keep
records containing the following information:
(i) The donor organization's identity and past experience as an
exporter of goods to meet basic human needs;
(ii) Past and current countries to which the donative programs have
been and are being directed, with particular reference to donative
programs in embargoed destinations;
(iii) Types of projects and commodities involved in the donative
programs;
(iv) Specific class(es) of beneficiaries of particular donated
goods intended to be exported under this License Exception; and
(vi) Information concerning the source of funding for the donative
programs and the projected annual value of exports under this License
Exception.
Sec. 740.8 Technology and software--unrestricted (TSU).
(a) Operating technology and software (OTS). (1) Scope. This
License Exception permits exports and reexports of operation technology
and software. ``Operation technology'' is the minimum technology
necessary for the installation, operation, maintenance (checking), and
repair of those products that are lawfully exported or reexported under
a license, a License Exception, or NLR. The ``minimum necessary''
operation technology does not include technology for development or
production and includes use technology only to the extent required to
ensure safe and efficient use of the product. Individual entries in the
software and technology subcategories of the CCL may further restrict
the export or reexport of operation technology under this License
Exception.
(2) Provisions and Destinations. (i) Provisions. Operation software
may be exported or reexported under this License Exception provided
that both of the following conditions are met:
(A) The operation software is the minimum necessary to operate
equipment authorized for export or reexport; and
(B) The operation software is in object code.
(ii) Destinations. Operation software and technology may be
exported or reexported to any destination to which the equipment for
which it is required has been or is being legally exported or
reexported.
(b) Sales technology (STS). (1) Scope. This License Exception
authorizes exports and reexports of sales technology. ``Sales
technology'' is data supporting a prospective or actual quotation, bid,
or offer to sell, lease, or otherwise supply any item.
(2) Provisions and destinations. (i) Provisions. Sales technology
may be exported or reexported under this License Exception provided
that:
(A) The technology is a type customarily transmitted with a
prospective or actual quotation, bid, or offer in accordance with
established business practice; and
(B) Neither the export nor the reexport will disclose the detailed
design, production, or manufacture technology, or the means of
reconstruction, of either the quoted item or its product. The purpose
of this limitation is to prevent disclosure of technology so detailed
that the consignee could reduce the technology to production.
(ii) Destinations. Sales technology may be exported or reexported
to any destination.
Note: Neither this section nor its use means that the U.S.
Government intends, or is committed, to approve a license
application for any commodity, plant, software, or technology that
may be the subject of the transaction to which such quotation, bid,
or offer relates. Exporters are advised to include in any
quotations, bids, or offers, and in any contracts entered into
pursuant to such quotations, bids, or offers, a provision relieving
themselves of liability in the event that a license (when required)
is not approved by the Bureau of Export Administration.
(c) Software updates (SUD). This License Exception authorizes
exports and reexports of software updates that are intended for and are
limited to correction of errors (``fixes'' to ``bugs'') in software
lawfully exported or reexported (original software). Such software
updates may be exported or reexported only to the same consignee to
whom the original software was exported or reexported, and such
software updates may not enhance the functional capacities of the
original software. Such software updates may be exported or reexported
to any destination to which the software for which they are required
has been legally exported or reexported.
(d) General Software Note (GSN): ``mass market'' software. (1)
Scope. This License Exception authorizes exports and reexports of
``mass market'' software subject to the General Software Note (see
Supplement No. 2 to part 774 of the EAR; also referenced in this
section).<SUP>5
\5\ ``Mass market'' software may fall under the classification
of ``general use'' software for export clearance purposes. Exporters
should consult the Census Bureau FTSR for possible SED requirements.
---------------------------------------------------------------------------
(2) Provisions and destinations.
(i) Destinations. This License Exception is available to all
destinations except Cuba, Iran, Libya, North Korea, Sudan, and Syria.
(ii) Provisions. This License Exception is available for software
that is generally available to the public by being:
(A) Sold from stock at retail selling points, without restriction,
by means of:
(1) Over the counter transactions;
(2) Mail order transactions; or
(3) Telephone call transactions; and
(B) Designed for installation by the user without further
substantial support by the supplier.
Sec. 740.9 Baggage (BAG).
(a) Scope. This License Exception authorizes individuals leaving
the United States and crew members of exporting carriers to take to any
destination, as personal baggage, the classes of commodities and
software described in this section.
[[Page 12778]]
(b) Eligibility. Individuals leaving the United States may export
and reexport any of the following commodities or software to any
destination or series of destinations. Crew members may export and
reexport only commodities and software described in paragraphs (b)(1)
and (b)(2) of this section to any destination.
(1) Personal effects. Usual and reasonable kinds and quantities for
personal use of wearing apparel, articles of personal adornment, toilet
articles, medicinal supplies, food, souvenirs, games, and similar
personal effects, and their containers.
(2) Household effects. Usual and reasonable kinds and quantities
for personal use of furniture, household effects, household
furnishings, and their containers.
(3) Vehicles. Usual and reasonable kinds and quantities of
vehicles, such as passenger cars, station wagons, trucks, trailers,
motorcycles, bicycles, tricycles, perambulators, and their containers.
(4) Tools of trade. Usual and reasonable kinds and quantities of
tools, instruments, or equipment and their containers for use in the
trade, occupation, employment, vocation, or hobby of the traveler.
(c) Limits on eligibility. The export of any commodity or software
may be limited or prohibited, if the kind or quantity is in excess of
the limits described in this section. In addition, the commodities or
software must be:
(1) Owned by the individuals (or by members of their immediate
families) or by crew members of exporting carriers on the dates they
depart from the United States;
(2) Intended for and necessary and appropriate for the use of the
individuals or members of their immediate families, or by the crew
members of exporting carriers;
(3) Not intended for sale; and
(4) Not exported under a bill of lading as cargo if exported by
crew members.
(d) Special provision: unaccompanied baggage. Individuals departing
the United States may ship unaccompanied baggage, which is baggage sent
from the United States on a carrier other than that on which an
individual departs. Crew members of exporting carriers may not ship
unaccompanied baggage. Unaccompanied shipments under this License
Exception shall be clearly marked ``BAGGAGE.'' Shipments of
unaccompanied baggage may be made at the time of, or within a
reasonable time before or after departure of the consignee or owner
from the United States. Personal baggage controlled for chemical and
biological weapons (CB), missile technology (MT), national security
(NS) or nuclear nonproliferation (NP) must be shipped within 3 months
before or after the month in which the consignee or owner departs the
United States. However, commodities controlled for CB, MT, NS or NP may
not be exported under this License Exception to Country Group D or
Country Group E:2. (See Supplement No. 1 to part 740.)
(e) Special provisions: shotguns and shotgun shells. (1) A United
States citizen or a permanent resident alien leaving the United States
may export or reexport shotguns with a barrel length of 18 inches or
over and shotgun shells under this License Exception, subject to the
following limitations:
(i) Not more than three shotguns may be taken on any one trip.
(ii) The shotguns and shotgun shells must be with the person's
baggage but they may not be mailed.
(iii) The shotguns and shotgun shells must be for the person's
exclusive use for legitimate hunting or lawful sporting purposes,
scientific purposes, or personal protection, and not for resale or
other transfer of ownership or control. Accordingly, except as provided
in (e)(2) of this section, shotguns may not be exported permanently
under this License Exception. All shotguns and unused shotgun shells
must be returned to the United States.
(2) A nonresident alien leaving the United States may export or
reexport under this License Exception only such shotguns and shotgun
shells as he or she brought into the United States under the provisions
of Department of Treasury Regulations (27 CFR 178.115(d)).
Sec. 740.10 Aircraft and vessels (AVS).
These License Exceptions authorize departure from the United States
of foreign registry civil aircraft on temporary sojourn in the United
States and of U.S. civil aircraft for temporary sojourn abroad; the
export of equipment and spare parts for permanent use on a vessel or
aircraft; and exports to vessels or planes of U.S. or Canadian registry
and U.S. or Canadian Airlines' installations or agents. Generally, no
License Exception symbol is necessary for export clearance purposes;
however, when necessary, the symbol ``AVS'' may be used.
(a) Aircraft on temporary sojourn. (1) Foreign registered aircraft.
An operating civil aircraft of foreign registry that has been in the
United States on a temporary sojourn may depart from the United States
under its own power for any destination, provided that:
(i) No sale or transfer of operational control of the aircraft to
nationals of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria has
occurred while in the United States;
(ii) The aircraft is not departing for the purpose of sale or
transfer of operational control to nationals of Cuba, Iran, Iraq,
Libya, North Korea, Sudan, or Syria; and
(iii) It does not carry from the United States any item for which
an export license is required and has not been granted by the U.S.
Government.
(2) U.S. registered aircraft. (i) A civil aircraft of U.S. registry
operating under an Air Carrier Operating Certificate, Commercial
Operating Certificate, or Air Taxi Operating Certificate issued by the
Federal Aviation Administration or conducting flights under operating
specifications approved by the Federal Aviation Administration pursuant
to 14 CFR part 129 of the regulations of the Federal Aviation
Administration, may depart from the United States under its own power
for any destination, provided that:
(A) The aircraft does not depart for the purpose of sale, lease or
other disposition of operational control of the aircraft, or its
equipment, parts, accessories, or components to a foreign country or
any national thereof;
(B) The aircraft's U.S. registration will not be changed while
abroad;
(C) The aircraft is not to be used in any foreign military activity
while abroad; and
(D) The aircraft does not carry from the United States any item for
which a license is required and has not been granted by the U.S.
Government.
(ii) Any other operating civil aircraft of U.S. registry may depart
from the United States under its own power for any destination, except
to Cuba, Iran, Iraq, Sudan, Syria, Libya, and North Korea (flights to
these destinations require a license), provided that:
(A) The aircraft does not depart for the purpose of sale, lease or
other disposition of operational control of the aircraft, or its
equipment, parts, accessories, or components to a foreign country or
any national thereof;
(B) The aircraft's U.S. registration will not be changed while
abroad;
(C) The aircraft is not to be used in any foreign military activity
while abroad;
(D) The aircraft does not carry from the United States any item for
which an export license is required and has not been granted by the
U.S. Government; and
(E) The aircraft will be operated while abroad by a U.S. licensed
pilot, except that during domestic flights within a foreign country,
the aircraft may be
[[Page 12779]]
operated by a pilot currently licensed by that foreign country.
(3) Criteria. The following nine criteria each must be met if the
flight is to qualify as a temporary sojourn. To be considered a
temporary sojourn, the flight must not be for the purpose of sale or
transfer of operational control. An export is for the transfer of
operational control unless the exporter retains each of the following
indicia of control:
(i) Hiring of cockpit crew. Right to hire and fire the cockpit
crew.
(ii) Dispatch of aircraft. Right to dispatch the aircraft.
(iii) Selection of routes. Right to determine the aircraft's routes
(except for contractual commitments entered into by the exporter for
specifically designated routes).
(iv) Place of maintenance. Right to perform or obtain the principal
maintenance on the aircraft, which principal maintenance is conducted
outside Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, under
the control of a party who is not a national of any of these countries.
(The minimum necessary in-transit maintenance may be performed in any
country).
(v) Location of spares. Spares are not located in Cuba, Iran, Iraq,
Libya, North Korea, Sudan, or Syria.
(vi) Place of registration. The place of registration is not
changed to Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria.
(vii) No transfer of technology. No technology is transferred to a
national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria,
except the minimum necessary in transit maintenance to perform flight
line servicing required to depart safely.
(viii) Color and logos. The aircraft does not bear the livery,
colors, or logos of a national of Cuba, Iran, Iraq, Libya, North Korea,
Sudan, or Syria.
(ix) Flight number. The aircraft does not fly under a flight number
issued to a national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or
Syria as such a number appears in the Official Airline Guide.
(4) Reexports. Civil aircraft legally exported from the United
States may be reexported under this section, provided the restrictions
described in this paragraph (a) are met.
(b) Equipment and spare parts for permanent use on a vessel or
aircraft, and ship and plane stores. (1) Vessel. Equipment and spare
parts for permanent use on a vessel, when necessary for the proper
operation of such vessel, may be exported or reexported for use on
board a vessel of any registry, except a vessel registered in Country
Group D:1 (see Supplement No. 1 to part 740), Cuba, or North Korea, or
owned or controlled by, or under charter or lease to any of these
countries or their nationals. In addition, other equipment and services
for necessary repair to fishing and fishery support vessels of Country
Group D:1 or North Korea may be exported for use on board such vessels
when admitted into the United States under governing international
fishery agreements.
(2) Aircraft. Equipment and spare parts for permanent use on an
aircraft, when necessary for the proper operation of such aircraft, may
be exported or reexported for use on board an aircraft of any registry,
except an aircraft registered in, owned or controlled by, or under
charter or lease to a country included in Country Group D:1, Cuba,
Libya, or North Korea, or a national of any of these countries.
(3) Ship and plane stores. Usual and reasonable kinds and
quantities of the following commodities may be exported for use or
consumption on board an aircraft or vessel of any registry during the
outgoing and immediate return flight or voyage. (Note that fuel and
related commodities that qualify as ship or plane stores as described
in this License Exception must be exported under the short supply
License Exception SPR (see Sec. 754.2(h) of the EAR.)
(i) Deck, engine, and steward department stores, provisions, and
supplies for both port and voyage requirements;
(ii) Medical and surgical supplies;
(iii) Food stores;
(iv) Slop chest articles;
(v) Saloon stores or supplies.
(c) Shipments to U.S. or Canadian vessels, planes and airline
installations or agents. (1) Exports to vessels or planes of U.S. or
Canadian registry. Export may be made of the commodities set forth in
paragraph (c)(3) of this section, for use by or on a specific vessel or
plane of U.S. or Canadian registry located at any seaport or airport
outside the United States or Canada except a port in Cuba, North Korea
or Country Group D:1 (excluding the PRC and Romania), (see Supplement
No. 1 to part 740) provided that such commodities are all of the
following: <SUP>6
\6\ Where a validated license is required, see Secs. 748.2 and
748.4(g) of the EAR.
---------------------------------------------------------------------------
(i) Ordered by the person in command or the owner or agent of the
vessel or plane to which they are consigned;
(ii) Intended to be used or consumed on board such vessel or plane
and necessary for its proper operation;
(iii) In usual and reasonable kinds and quantities during times of
extreme need; and
(iv) Shipped as cargo for which a Shipper's Export Declaration
(SED) is filed with the carrier, except that an SED is not required
when any of the commodities, other than fuel, is exported by U.S.
airlines to their own aircraft abroad for their use.
(2) Exports to U.S. or Canadian airline's installation or agent.
Exports of the commodities set forth in paragraph (c)(3) of this
section, except fuel, may be made to a U.S. or Canadian airline's
<SUP>7 installation or agent in any foreign destination except Cuba,
North Korea, or Country Group D:1 (excluding the PRC and Romania), (see
Supplement No. 1 to part 740) provided such commodities are all of the
following:
\7\ See Part 772 of the EAR for definitions of United States
and Canadian airlines.
---------------------------------------------------------------------------
(i) Ordered by a U.S. or Canadian airline and consigned to its own
installation or agent abroad;
(ii) Intended for maintenance, repair, or operation of aircraft
registered in either the United States or Canada, and necessary for the
aircraft's proper operation, except where such aircraft is located in,
or owned, operated or controlled by, or leased or chartered to, Cuba,
North Korea or Country Group D:1 (excluding the PRC) (see Supplement
No. 1 to part 740) or a national of such country;
(iii) In usual and reasonable kinds and quantities; and
(iv) Shipped as cargo for which a Shipper's Export Declaration
(SED) is filed with the carrier, except that an SED is not required
when any of these commodities is exported by U.S. airlines to their own
installations and agents abroad for use in their aircraft operations.
(3) Applicable commodities. This paragraph (c) applies to the
following commodities, subject to the provisions in paragraph (c)(1)
and (c)(2) of this section:
Note to paragraph (c)(3) of this section: Fuel and related
commodities for shipment to vessels or planes of U.S. or Canadian
registry as described in this License Exception must be shipped
under the short supply License Exception SPR (see Sec. 754.2(h) of
the EAR);
(i) Deck, engine, and steward department stores, provisions, and
supplies for both port and voyage requirements;
(ii) Medical and surgical supplies;
(iii) Food stores;
(iv) Slop chest articles;
(v) Saloon stores or supplies; and
[[Page 12780]]
(vi) Equipment and spare parts.
Sec. 740.11 Additional permissive reexports (APR).
This License Exception allows the following reexports:
(a) Reexports from Country Group A:1 and cooperating countries.
Reexports may be made from Country Group A:1 or from cooperating
countries, provided that:
(1) The reexport is made in accordance with the conditions of an
export authorization from the government of the reexporting country;
(2) The commodities being reexported are not controlled for nuclear
nonproliferation, missile technology or crime control reasons; and
(3) The reexport is destined to either:
(i) A country in Country Group B that is not also included in
Country Group D:2, D:3, or D:4; Cambodia; or Laos; and the commodity
being reexported is both controlled for national security reasons and
not controlled for export to Country Group A:1; or
(ii) A country in Country Group D:1 only (National Security) (see
Supplement No. 1 to part 740), other than Cambodia or Laos, and the
commodity being reexported is controlled for national security reasons.
(b) Reexports to and among Country Group A:1 and cooperating
countries. Reexports may be made to and among Country Group A:1 and
cooperating countries, provided that eligible commodities are for use
or consumption within a Country Group A:1 (see Supplement No. 1 to part
740) or cooperating country, or for reexport from such country in
accordance with other provisions of the EAR. All commodities except the
following are eligible for reexport to and among Country Group A:1 and
cooperating countries:
(1) Computers with a CTP greater than 10,000 MTOPS to Hong Kong and
South Korea;
(2) Commodities controlled for nuclear nonproliferation reasons.
(c) Reexports to a destination to which direct shipment from the
United States is authorized under an unused outstanding license may be
made under the terms of that license. Such reexports shall be recorded
in the same manner as exports are recorded, regardless of whether the
license is partially or wholly used for reexport purposes. (See part
762 of the EAR for recordkeeping requirements.)
(d) Reexports of any item from Canada that, at the time of
reexport, may be exported directly from the United States to the new
country of destination under any License Exception.
(e) Reexports (return) to the United States of any item. If the
reexporting party requests written authorization because the government
of the country from which the reexport will take place requires formal
U.S. Government approval, such authorization will generally be given.
(f) Reexports from a foreign destination to Canada of any item if
the item could be exported to Canada without a license.
(g) Reexports between Switzerland and Liechtenstein.
(h) Shipments of foreign-made products that incorporate U.S.-origin
components may be accompanied by U.S.-origin controlled spare parts,
provided that they do not exceed 10 percent of the value of the
foreign-made product, subject to the restrictions in Sec. 734.4 of the
EAR.
(i) Reexport to Sudan of items controlled by ECCNs 2A994, 3A993,
5A992, 5A995, 6A990, 6A994, 7A994, 8A992, 8A994, 9A990, 9A992, and
9A994. In addition, items in these ECCNs are not counted as controlled
U.S. content for purposes of determining license requirements for U.S.
parts, components, and materials incorporated into foreign-made
products.
BILLING CODE 3510-DT-P
[[Page 12781]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.008
[[Page 12782]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.009
[[Page 12783]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.010
[[Page 12784]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.011
[[Page 12785]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.012
BILLING CODE 3510-DT-C
[[Page 12786]]
Supplement No. 2 to Part 740--Items That May Be Donated To Meet Basic
Human Needs Under the Humanitarian License Exception
(a) Health
Equipment for the Handicapped
Hospital Supplies and Equipment
Laboratory Supplies and Equipment
Medical Supplies and Devices
Medicine-Processing Equipment
Medicines
Vitamins
Water Resources Equipment
Food
Agricultural Materials and Machinery Suited to Small-Scale Farming
Operations
Agricultural Research and Testing Equipment
Fertilizers
Fishing Equipment and Supplies Suited to Small-Scale Fishing
Operations
(b) Food
Insecticides
Pesticides
Seeds
Small-Scale Irrigation Equipment
Veterinary Medicines and Supplies
(c) Clothes and Household Goods
Bedding
Clothes
Cooking Utensils
Fabric
Personal Hygiene Items
Soap-Making Equipment
Weaving and Sewing Equipment
(d) Shelter
Building Materials
Hand Tools
(e) Education
Books
Individual School Supplies
School Furniture
Special Education Supplies and Equipment for the Handicapped
(f) Basic Support Equipment and Supplies Necessary To Operate and
Administer the Donative Program
Audio-Visual Aids for Training
Generators
Office Supplies and Equipment
PART 742--CONTROL POLICY--CCL BASED CONTROLS
Sec.
742.1 Introduction.
742.2 Proliferation of chemical and biological weapons.
742.3 Nuclear nonproliferation.
742.4 National security.
742.5 Missile technology.
742.6 Regional stability.
742.7 Crime control.
742.8 Anti-Terrorism: Iran.
742.9 Anti-Terrorism: Syria.
742.10 Anti-Terrorism: Sudan.
742.11 Specially designed implements of torture.
742.12 High performance computers.
742.13 Communications intercepting devices.
Supplement No. 1 to Part 742--Nonproliferation of Chemical and
Biological Weapons
Supplement No. 2 to Part 742--Anti-Terrorism Controls; Iran, Syria and
Sudan Contract Sanctity Dates and Related Policies
Supplement No. 3 to Part 742--High Performance Computers; Safeguard
Conditions and Related Information
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a;
E.O. 12058, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 3 CFR, 1993
Comp., p. 608; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3
CFR, 1994 Comp., p. 950; Notice of August 15, 1995 (60 FR 42767,
August 17, 1995).
Sec. 742.1 Introduction. In this part, references to the Export
Administration Regulations (EAR) are references to 15 CFR chapter VII,
subchapter C.
(a) Scope. This part describes all the reasons for control
reflected in the Country Chart in Supplement No. 1 to part 738 of the
EAR. In addition, it includes licensing requirements and licensing
policies for the following items that are not reflected on the Country
Chart: specially designed implements of torture, high performance
computers, and communications intercepting devices. This part is
organized so that it lists each reason for control in the order
(reading left to right) in which the control appears on the Country
Chart. In addition to describing the reasons for control and licensing
requirements and policies, this part describes any applicable contract
sanctity provisions that may apply to specific controls and includes a
description of any multilateral regime under which specific controls
are maintained.
(b) Reasons for control listed on the CCL not covered by this part.
This part describes the license requirements and the licensing policies
for all the ``Reasons for Control'' that are listed on the Commerce
Control List (CCL) except ``Short Supply'' and ``U.N. Sanctions,''
which do not appear on the Country Chart.
(1) Short Supply. ECCNs containing items subject to short supply
controls (``SS'') refer the exporter to part 754 of the EAR. These
ECCNs are: 0A980 (Horses for export by sea); 1C980 (certain inorganic
chemicals); 1C981 (Crude petroleum, including reconstituted crude
petroleum, tar sands, and crude shale oil); 1C982 (certain other
petroleum products); 1C983 (Natural gas liquids and other natural gas
derivatives); 1C984 (certain manufactured gas and synthetic natural gas
(except when commingled with natural gas and thus subject to export
authorization from the Department of Energy); and 1C988 (Western red
cedar (thuja plicata) logs and timber, and rough, dressed and worked
lumber containing wane).
(2) U.N. Sanctions. The United Nations imposes sanctions, short of
complete embargoes, against certain countries which may result in
controls that supplement those otherwise maintained under the EAR for
that particular country. This part does not address license
requirements and licensing policies for controls implementing U.N.
sanctions. CCL entries containing items subject to U.N. sanctions will
refer the exporter to part 746 of the EAR, Embargoes and Other Special
Controls, for any supplemental controls that may apply to exports and
reexports involving these countries.
(c) Exports and reexports involving Cuba, Libya, North Korea, Iraq,
Iran, and the Bosnian Serb-controlled areas of Bosnia-Herzegovina. This
part does not cover license requirements and licensing policies that
apply to exports and reexports to embargoed destinations (Cuba, Libya,
North Korea, Iraq, Iran and the Bosnian-Serb controlled areas of
Bosnia-Herzegovina). These comprehensive embargoes cover a broader
range of items than those reflected in the CCL. If you are exporting or
reexporting to any of these destinations, you should first review part
746 of the EAR, Embargoes and Other Special Controls.
(d) Anti-terrorism Controls on Cuba, Libya, Iran, Iraq, North
Korea, Sudan and Syria. Commerce maintains anti-terrorism controls on
Iran, Syria and Sudan under section 6(a) of the Export Administration
Act. Items controlled under section 6(a) to these three countries are
described in Supplement No. 2 to part 742. Commerce also maintains
controls under EAA section 6(j) of the EAA to Cuba, Libya, Iraq, Iran,
North Korea, Sudan and Syria. Items controlled to these seven countries
under EAA section 6(j) are also described in Supplement 2 to part 742.
The Secretaries of Commerce and State are required to notify
appropriate Committees of the Congress 30 days before issuing a license
for an item controlled under section 6(j) to Cuba, Libya, North Korea,
Iran, Iraq, Sudan or Syria. As noted in paragraph (c) of this section,
if you are exporting or reexporting to Cuba, Libya, Iran, Iraq and
North Korea, you should review Part 746 of the EAR, Embargoes and Other
Special Controls.
(e) End-user and end-use based controls. This part does not cover
prohibitions and licensing requirements for exports of items not
included on the
[[Page 12787]]
CCL that are subject to end-use and end-user controls: certain nuclear
end-uses; certain missile end-uses; certain chemical and biological
weapons end-uses; certain naval nuclear propulsion end-uses; certain
activities of U.S. persons; certain exports to and for the use of
certain foreign vessels or aircraft; and certain exports to all
countries for Libyan aircraft. Licensing requirements and policies for
these exports are contained in part 744 of the EAR.
(f) Overlapping license policies. Many items on the CCL are subject
to more than one type of control (e.g., national security (NS), missile
technology (MT), nuclear nonproliferation (NP), regional stability
(RS)). In addition, applications for all items on the CCL, other than
those controlled for short supply reasons, may be reviewed for missile
technology (see Sec. 742.5(b)(3) of this part), nuclear
nonproliferation (see Sec. 742.3(b)(2) of this part), or chemical and
biological weapons (see Sec. 742.3(b)(3) of this part), if the end-use
or end-user may be involved in certain proliferation activities.
Finally, many multilaterally controlled items are reviewed for anti-
terrorism reasons if they are destined for a terrorism-supporting
country (see paragraph (d) of this section). Your application for a
license will be reviewed under all applicable licensing policies. A
license will be issued only if an application can be approved under all
applicable licensing policies.
Sec. 742.2 Proliferation of chemical and biological weapons.
(a) License requirements. The following controls are maintained in
support of the U.S. foreign policy of opposing the proliferation and
illegal use of chemical and biological weapons:
(1) If CB Column 1 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to all destinations except Canada for the following:
(i) Human pathogens, zoonoses, toxins, animal pathogens,
genetically modified microorganisms and plant pathogens identified in
ECCNs 1C351, 1C352, 1C353 and 1C354; and
(ii) Technology (ECCN 1E391) for the production and/or disposal of
microbiological commodities described in paragraph (a)(1)(i) of this
section.
(2) If CB Column 2 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to all destinations except countries in Country Group A:3 (see
Supplement No. 1 to part 740 of the EAR) (Australia Group members) for
the following:
(i) Chemicals identified in ECCN 1C350 (precursor and intermediate
chemicals used in the production of chemical warfare agents).
(A) This licensing requirement includes chemical mixtures
containing any chemicals identified in ECCN 1C350, except as specified
in Note 2 to that ECCN.
(B) This licensing requirement does not include chemical compounds
created with any chemicals identified in ECCN 1C350, unless those
compounds are also identified in ECCN 1C350.
(ii) Software (ECCN 1D390) for process control that is specifically
configured to control or initiate production of the chemical precursors
controlled by ECCN 1C350.
(iii) Technology (ECCN 1E390) for the production and/or disposal of
chemical precursors described in ECCN 1C350, and technology involving
the following for facilities designed or intended to produce chemicals
described in ECCN 1C350:
(A) Overall plant design;
(B) Design, specification, or procurement of equipment;
(C) Supervision of construction, installation, or operation of
complete plant or components thereof;
(D) Training of personnel; or
(E) Consultation on specific problems involving such facilities.
(3) If CB Column 3 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to Country Group D:3 (see Supplement No. 1 to part 740 of the
EAR) for the following:
(i) Equipment and materials identified in ECCNs 2B350 and 2B351 on
the CCL, which can be used in the production of chemical weapons
precursors or chemical warfare agents, and equipment and materials
identified in ECCN 2B352, which can be used in the production of
biological agents; and
(ii) Technology (ECCN 2E301) for production of the commodities
covered in ECCNs 2B350, 2B351, 2B352, 2B353 and 2B354.
(b) Licensing policy. (1) License applications for the items
described in paragraph (a) of this section will be considered on a
case-by-case basis to determine whether the export or reexport would
make a material contribution to the design, development, production,
stockpiling, or use of chemical or biological weapons. When an export
or reexport is deemed to make such a contribution, the license will be
denied.
(2) The following factors are among those that will be considered
to determine what action should be taken on individual license
applications:
(i) The specific nature of the end-use;
(ii) The significance of the export and reexport in terms of its
contribution to the design, development, production, stockpiling, or
use of chemical or biological weapons;
(iii) The nonproliferation credentials of the importing country;
(iv) The types of assurances or guarantees against design,
development, production, stockpiling, or use of chemical or biological
weapons that are given in a particular case; and
(v) The existence of a pre-existing contract.
(3) BXA will review license applications in accordance with the
licensing policy described in paragraph (b)(2) of this section for
items not described in paragraph (a) of this section that:
(i) Require a license for reasons other than short supply;
(ii) Are destined to any country except countries in Country Group
A:3 (see Supplement No. 1 to part 740 of the EAR) (Australia Group
members); and
(iii) Could be destined for the design, development, production,
stockpiling, or use of chemical or biological weapons, or for a
facility engaged in such activities.
(c) Contract sanctity. Contract sanctity dates are set forth in
Supplement No. 1 to part 742. Applicants who wish that a preexisting
contract be considered in reviewing their license applications must
submit documentation sufficient to establish the existence of such a
contract.
(d) Australia Group. The Australia Group, a multilateral body that
works to halt the spread of chemical and biological weapons, has
developed common control lists of items specifically related to
chemical and biological weapons. Australia Group members are listed in
Country Group A:3 (see Supplement No. 1 to part 740 of the EAR).
Controls on items listed in paragraph (a) of this section are
consistent with lists agreed to in the Australia Group.
Sec. 742.3 Nuclear nonproliferation.
(a) License requirements. Section 309(c) of the Nuclear Non-
Proliferation Act of 1978 requires BXA to identify items subject to the
EAR that could be of significance for nuclear explosive purposes if
used for activities other than those authorized at the time of export
or reexport. ECCNs on the CCL that include the symbol ``NP 1'' or ``NP
2'' in the ``Country Chart'' column of the ``License Requirements''
section identify items that could be of significance for nuclear
explosive purposes and are therefore subject to licensing
[[Page 12788]]
requirements under this part and under section 309(c) of the Nuclear
Non-Proliferation Act of 1978. These items are referred to as ``The
Nuclear Referral List'' and are subject to the following licensing
requirements:
(1) If NP Column 1 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to all destinations except Nuclear Suppliers Group (NSG)
member countries (Country Group A:4) (see Supplement No. 1 to part 740
of the EAR).
(2) If NP Column 2 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the applicable ECCN, a license is
required to Country Group D:2 (see Supplement No. 1 to part 740 of the
EAR).
(3) Other nuclear-related license requirements are described in
Secs. 744.2 and 744.5 of the EAR.
(b) Licensing policy. (1) To implement the controls in paragraph
(a) of this section, the following factors are among those used to
determine what action should be taken on individual applications:
(i) Whether the items to be transferred are appropriate for the
stated end-use and whether that stated end-use is appropriate for the
end-user;
(ii) The significance for nuclear purposes of the particular item;
(iii) Whether the items to be exported or reexported are to be used
in research on, or for the development, design, manufacture,
construction, operation, or maintenance of, any reprocessing or
enrichment facility;
(iv) The types of assurances or guarantees given against use for
nuclear explosive purposes or proliferation in the particular case;
(v) Whether any party to the transaction has been engaged in
clandestine or illegal procurement activities;
(vi) Whether an application for a license to export or reexport to
the end-user has previously been denied, or whether the end-user has
previously diverted items received under a general license, a License
Exception, or a validated license to unauthorized activities;
(vii) Whether the export or reexport would present an unacceptable
risk of diversion to a nuclear explosive activity or unsafeguarded
nuclear fuel-cycle activity described in Sec. 744.2(a) of the EAR; and
(viii) The nonproliferation credentials of the importing country,
based on consideration of the following factors:
(A) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of
Nuclear Weapons in Latin America (Treaty of Tlatelolco) or to a similar
international legally-binding nuclear nonproliferation agreement;
(B) Whether the importing country has all of its nuclear
activities, facilities, or installations that are operational, being
designed, or under construction under International Atomic Energy
Agency (IAEA) safeguards or equivalent full scope safeguards;
(C) Whether there is an agreement for cooperation in the civil uses
of atomic energy between the U.S. and the importing country;
(D) Whether the actions, statements, and policies of the government
of the importing country are in support of nuclear nonproliferation and
whether that government is in compliance with its international
obligations in the field of non-proliferation;
(E) The degree to which the government of the importing country
cooperates in non-proliferation policy generally (e.g., willingness to
consult on international nonproliferation issues); and
(F) Information on the importing country's nuclear intentions and
activities.
(2) In addition, BXA will review license applications in accordance
with the licensing policy described in paragraph (b) of this section
for items not on the Nuclear Referral List that:
(i) Require a license on the CCL for reasons other than ``short
supply;'' and
(ii) Are intended for a nuclear related end-use or end-user.
(3) For the People's Republic of China, the general licensing
policy for applications for those items that would make a direct and
significant contribution to nuclear weapons and their delivery systems
is extended review or denial.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
(d) Nuclear Suppliers Group. Most items on the Nuclear Referral
List that require a license under NP Column No. 1 on the Country Chart
(see Supplement No. 1 to part 738 of the EAR) are contained in the
Annex to the ``Guidelines for Transfers of Nuclear-Related Dual-Use
Equipment, Material, and Related Technology'' (the Annex), as published
by the International Atomic Energy Agency in INFCIRC/254/Revision 1/
Part 2. The adherents to INFCIRC/254/Revision 1/Part 2, which includes
the Nuclear Suppliers Guidelines, have agreed to establish export
licensing procedures for the transfer of items identified in the Annex.
Items that are listed as requiring a license under NP Column No. 2 on
the Country Chart (see Supplement No. 1 to part 738 of the EAR) are not
included in the Annex and are controlled only by the United States.
Sec. 742.4 National security.
(a) License requirements. It is the policy of the United States to
restrict the export and reexport of items that would make a significant
contribution to the military potential of any other country or
combination of countries that would prove detrimental to the national
security of the United States. Accordingly, a license is required for
exports and reexports to all destinations, except Canada, for all items
in ECCNs on the CCL that include NS Column 1 in the Country Chart
column of the ``License Requirements'' section. A license is required
to all destinations except Country Group A:1 and cooperating countries
(see Supplement No. 1 to part 740) for all items in ECCNs on the CCL
that include NS Column 2 in the Country Chart column of the ``License
Requirements'' section. The purpose of the controls is to ensure that
these items do not make a contribution to the military potential of
countries in Country Group D:1 (see Supplement No. 1 to part 740 of the
EAR) that would prove detrimental to the national security of the
United States. License Exception GBS is available for the export and
reexport of certain national security controlled items to Country Group
B (see Sec. 740.3(b) and Supplement No. 1 to part 740 of the EAR).
(b) Licensing policy. (1) The policy for national security
controlled items exported or reexported to any country except a country
in Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is
to approve applications unless there is a significant risk that the
items will be diverted to a country in Country Group D:1.
(2) Except for those countries described in paragraphs (b)(5)
through (b)(7) of this section, the general policy for exports and
reexports of items to Country Group D:1 (see Supplement No. 1 to part
740 of the EAR) is to approve applications when BXA determines, on a
case-by-case basis, that the items are for civilian use or would
otherwise not make a significant contribution to the military potential
of the country of destination that would prove detrimental to the
national security of the United States.
(3) To permit such policy judgments to be made, each application is
reviewed in the light of prevailing policies with full consideration of
all
[[Page 12789]]
aspects of the proposed transaction. The review generally includes:
(i) An analysis of the kinds and quantities of items to be shipped;
(ii) Their military or civilian uses;
(iii) The unrestricted availability abroad of the same or
comparable items;
(iv) The country of destination;
(v) The ultimate end-users in the country of destination; and
(vi) The intended end-use.
(4) Although each proposed transaction is considered individually,
items described in Advisory Notes on the Commerce Control List are more
likely to be approved than others.
(5) In recognition of efforts made to adopt safeguard measures for
exports and reexports, Bulgaria, Latvia, Kazakhstan, Lithuania,
Mongolia, and Russia are accorded enhanced favorable consideration
licensing treatment.
(6) The general policy for Cambodia and Laos is to approve license
applications when BXA determines, on a case-by-case basis, that the
items are for an authorized use in Cambodia or Laos and are not likely
to be diverted to another country or use contrary to the national
security or foreign policy controls of the United States.
(7) For the People's Republic of China, the general licensing
policy is to approve applications, except that those items that would
make a direct and significant contribution to electronic and anti-
submarine warfare, intelligence gathering, power projection, and air
superiority receive extended review or denial. Each application will be
considered individually. Items may be approved even though they may
contribute to Chinese military development or the end-user or end-use
is military. Note that the Advisory Notes in the CCL headed ``Note for
the People's Republic of China'' provide guidance on equipment likely
to be approved more rapidly for China.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
(d) [Reserved]
Sec. 742.5 Missile technology.
(a) License requirements. (1) In support of U.S. foreign policy to
limit the proliferation of missiles, a license is required to export
and reexport items related to the design, development, production, or
use of missiles. These items are identified in ECCNs on the CCL as MT
Column No. 1 in the Country Chart column of the ``License
Requirements'' section. Licenses for these items are required to all
destinations, except Canada, as indicated by MT Column 1 of the Country
Chart (see Supplement No. 1 to part 738 of the EAR).
(2) The term ``missiles'' is defined as rocket systems (including
ballistic missile systems, space launch vehicles, and sounding rockets)
and unmanned air vehicle systems (including cruise missile systems,
target drones, and reconnaissance drones) capable of delivering at
least 500 kilograms (kg) payload to a range of at least 300 kilometers
(km).
(b) Licensing policy. (1) Applications to export and reexport items
identified in ECCNs on the CCL as MT Column No. 1 in the Country Chart
column of the ``License Requirements'' section will be considered on a
case-by-case basis to determine whether the export or reexport would
make a material contribution to the proliferation of missiles.
Applications for exports and reexports of such items contained in
Category 7A or described by ECCN 9A101 on the CCL will be considered
more favorably if such exports or reexports are determined to be
destined to a manned aircraft, satellite, land vehicle, or marine
vessel, in quantities appropriate for replacement parts for such
applications. When an export or reexport is deemed to make a material
contribution to the proliferation of missiles, the license will be
denied.
(2) The following factors are among those that will be considered
in reviewing individual applications.
(i) The specific nature of the end-use;
(ii) The significance of the export and reexport in terms of its
contribution to the design, development, production, or use of
missiles;
(iii) The capabilities and objectives of the missile and space
programs of the recipient country;
(iv) The nonproliferation credentials of the importing country;
(v) The types of assurances or guarantees against design,
development, production, or use of missiles that are given in a
particular case; and
(vi) The existence of a preexisting contract.
(3) Controls on other items. BXA will review license applications,
in accordance with the licensing policy described in paragraph (b)(1)
of this section, for items not described in paragraph (a) of this
section that:
(i) Require a validated license for reasons other than short
supply; and
(ii) Could be destined for the design, development, production, or
use of missiles, or for a facility engaged in such activities.
(c) Contract sanctity. The following contract sanctity dates have
been established:
(1) License applications for batch mixers specified in ECCN 1B115.a
involving contracts that were entered into prior to January 19, 1990,
will be considered on a case-by-case basis.
(2) License applications subject to ECCN 1B115.b or .c that involve
a contract entered into prior to March 7, 1991, will be considered on a
case-by-case basis.
(3) Applicants who wish that a pre-existing contract be considered
in reviewing their license applications must submit documentation
sufficient to establish the existence of a contract.
(d) Missile Technology Control Regime. Missile Technology Control
Regime (MTCR) members are listed in Country Group A:2 (see Supplement
No. 1 to part 740 of the EAR). Controls on items identified in
paragraph (a) of this section are consistent with the list agreed to in
the MTCR and included in the MTCR Annex.
Sec. 742.6 Regional stability.
(a) License requirements. The following controls are maintained in
support of U.S. foreign policy to maintain regional stability:
(1) As indicated in the CCL and in RS Column 1 of the Country Chart
(see Supplement No. 1 to part 738 of the EAR), a license is required to
all destinations, except Canada, for items described on the CCL under
ECCNs 6A002.a.1, a.2, a.3, or .c; 6A003.b.3 and b.4; 6D102 (only
software for development of items in 6A002.a.1, a.2, a.3 or .c); 6E001
(only technology for development of items in 6A002.a.1, a.2, a.3, and
.c, or 6A003.b.3 and b.4); 6E002 (only technology for production of
items in 6A002.a.1, a.2, a.3, or .c, or 6A003.b.3 or b.4); 7D001 (only
software for development or production of items in 7A001, 7A002, or
7A003); 7E001 (only technology for the development of inertial
navigation systems, inertial equipment, and specially designed
components therefor for civil aircraft); 7E002 (only technology for the
production of inertial navigation systems, inertial equipment, and
specially designed components therefor for civil aircraft).
(2) As indicated in the CCL and in RS Column 2 of the Country Chart
(see Supplement No. 1 to part 738 of the EAR), a license is required to
any destination except countries in Country Group A:1 (see Supplement
No. 1 to part 740 of the EAR), Iceland and New Zealand for military
vehicles and certain commodities (specially designed) used to
manufacture military equipment, described on the CCL in ECCNs 0A018.c,
1B018.a, 2B018, and 9A018.a and .b.
[[Page 12790]]
(b) Licensing policy. (1) Applications to export and reexport items
described in paragraph (a)(1) of this section will be reviewed on a
case-by-case basis to determine whether the export or reexport could
contribute directly or indirectly to any country's military
capabilities in a manner that would alter or destabilize a region's
military balance contrary to the foreign policy interests of the United
States.
(2) Applications to export and reexport commodities described in
paragraph (a)(2) of this section will generally be considered favorably
on a case-by-case basis unless there is evidence that the export or
reexport would contribute significantly to the destabilization of the
region to which the equipment is destined.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
(d) U.S. controls. Although the United States seeks cooperation
from like-minded countries in maintaining regional stability controls,
at this time these controls are maintained only by the United States.
Sec. 742.7 Crime control.
(a) License requirements. In support of U.S. foreign policy to
promote the observance of human rights throughout the world, a license
is required to export and reexport crime control and detection
equipment, related technology and software as follows:
(1) Crime control and detection instruments and equipment and
related technology and software identified in the appropriate ECCNs on
the CCL under CC Column No. 1 in the Country Chart column of the
``License Requirements'' section. A license is required to countries
listed in CC Column 1 (Supplement No. 1 to part 738 of the EAR). Items
affected by this requirement are identified on the CCL under the
following ECCNs: 0A982, 0A984, 0A985, 0E984, 1A984, 3A980, 3A981,
3D980, 3E980, 4A003 (fingerprint computers only), 4A980, 4D001 (for
fingerprint computers only), 4D980, 4E001 (for fingerprint computers
only); 4E980, 6A002 (police-model infrared viewers only), 6E001 (for
police-model infrared viewers only), 6E002 (for police-model infrared
viewers only), and 9A980.
(2) Shotguns with a barrel length of 24 inches or more identified
in ECCN 0A984 on the CCL under CC Column No. 2 in the Country Chart
column of the ``License Requirements'' section regardless of end-user
to countries listed in CC Column 2 (Supplement No. 1 to part 738 of the
EAR).
(3) Shotguns with barrel length over 24 inches, identified in ECCN
0A984 on the CCL under CC Column No. 3 in the Country Chart column of
the ``License Requirements'' only if for sale or resale to police or
law enforcement entities to countries listed in CC Column 3 (Supplement
No. 1 to part 738 of the EAR).
(b) Licensing policy. Applications for items controlled under this
section will generally be considered favorably on a case-by-case basis
unless there is evidence that the government of the importing country
may have violated internationally recognized human rights and that the
judicious use of export controls would be helpful in deterring the
development of a consistent pattern of such violations or in distancing
the United States from such violations.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
(d) U.S. controls . Although the United States seeks cooperation
from like-minded countries in maintaining controls on crime control and
detection items, at this time these controls are maintained only by the
United States.
Sec. 742.8 Anti-Terrorism: Iran.
(a) License requirements. (1) If AT column 1 or AT column 2 of the
Country Chart (Supplement No. 1 to Part 738 of the EAR) is indicated in
the appropriate ECCN, a license is required for export to Iran for
anti-terrorism purposes. In addition, portable electric power
generators and related software and technology (ECCNs 2A994, 2D994 and
2E994) are controlled for export to Iran for anti-terrorism purposes.
See paragraph (a)(5) of this section for controls maintained by the
Department of the Treasury.
(2) If AT column 1 or AT column 2 of the Country Chart (Supplement
No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a
license is required for reexport to Iran for anti-terrorism purposes,
except for ECCNs 2A994, 3A993, 5A992, 5A995, 6A990, 6A994, 7A994,
8A992, 8A994, 9A990, 9A992 and 9A994. In addition, items in these ECCNs
are not counted as controlled U.S. content for the purpose of
determining license requirements for U.S. parts, components or
materials incorporated into foreign-made products. However, the export
from the United States to any destination with knowledge that they will
be reexported directly or indirectly, in whole or in part to Iran is
prohibited without a license. See Sec. 740.9 of the EAR for additional
information. See paragraph (a)(5) of this section for controls
maintained by the Department of the Treasury.
(3) The Secretary of State has designated Iran as a country whose
Government has repeatedly provided support for acts of international
terrorism.
(4) In support of U.S. foreign policy on terrorism-supporting
countries, BXA maintains two types of anti-terrorism controls on the
export and reexport of items described in Supplement 2 to part 742.
(i) Items described in paragraphs (c)(1) through (c)(5) of
Supplement No. 2 to part 742 are controlled under section 6(j) of the
Export Administration Act, as amended (EAA), if destined to military,
police, intelligence or other sensitive end-users.
(ii) Items described in paragraphs (c)(1) through (c)(5) of
Supplement No. 2 to part 742 destined to non-sensitive end-users, as
well as items described in paragraphs (c)(6) through (c)(39) to all
end-users, are controlled to Iran under section 6(a) of the EAA. (See
Supplement No. 2 to part 742 for more information on items controlled
under sections 6(a) and 6(j) of the EAA and Sec. 750.6 of the EAR for
procedures for processing license applications for items controlled
under EAA section 6(j).)
(5) Exports and certain reexports to Iran are subject to a
comprehensive embargo administered by the Department of the Treasury's
Office of Foreign Assets Control (OFAC). If you wish to export or
reexport to Iran, the Government of Iran or any entity owned or
controlled by that Government, you should review part 746 of the EAR
and consult with OFAC. Please note that authorization from OFAC
constitutes authorization under the EAR and no separate license or
authorization from BXA is required.
(b) Licensing policy. (1) The Iran-Iraq Arms Non-Proliferation Act
of October 23, 1992, requires BXA to deny licenses for items controlled
to Iran for national security (section 5 of the 1979 EAA) or foreign
policy reasons (section 6 of the 1979 EAA), absent contract sanctity or
a Presidential waiver. License applications for which contract sanctity
is established may be considered under policies in effect prior to the
enactment of that Act. Otherwise, licenses for such items to Iran are
subject to a general policy of denial.
(2) License applications for items controlled under section 6(a) of
the EAA will also be reviewed to determine whether requirements of
section 6(j) apply. Whenever the Secretary of State determines that an
export or reexport could make a significant contribution to the
military potential of Iran, including
[[Page 12791]]
its military logistics capability, or could enhance Iran's ability to
support acts of international terrorism, the Secretaries of State and
Commerce will notify the Congress 30 days prior to the issuance of a
license.
(c) Contract sanctity. Contract sanctity dates and related policies
for Iran are listed in Supplement No. 2 to part 742. Applicants who
wish a pre-existing contract to be considered must submit sufficient
evidence to establish the existence of a contract.
(d) U.S. controls. Although the United States seeks cooperation
from like-minded countries in maintaining anti-terrorism controls, at
this time these controls are maintained only by the United States.
Sec. 742.9 Anti-terrorism: Syria.
(a) License requirements. (1) If AT Column 1 of the Country Chart
(Supplement No. 1 to part 738 of the EAR) is indicated in the
appropriate ECCN, a license is required for export and reexport to
Syria for anti-terrorism purposes.
(2) The Secretary of State has designated Syria as a country whose
government has repeatedly provided support for acts of international
terrorism.
(3) In support of U.S. foreign policy against terrorism, BXA
maintains two types of anti-terrorism controls on the export and
reexport to Syria of items described in Supplement No. 2 to part 742.
(i) Items described in paragraphs (c)(1) through (c)(5) of
Supplement No. 2 to part 742, if destined to military, police,
intelligence or other end-users in Syria, are controlled under section
6(j) of the Export Administration Act, as amended (EAA).
(ii) Items listed in paragraphs (c)(1) through (c)(5) of Supplement
No. 2 to part 742 destined to other end-users in Syria, as well as
items to all end-users listed in (c)(6) through (c)(8), (c)(10) through
(c)(14), (c)(16) through (c)(19), and (c)(22) through (c)(39) of
Supplement No. 2 to part 742, are controlled to Syria under section
6(a) of the EAA.
(b) Licensing policy. (1) Applications for export and reexport to
all end-users in Syria of the following items will generally be denied:
(i) Items that are controlled for chemical and biological weapons
proliferation reasons to any destination. These are items that contain
CB Column 1, CB Column 2, or CB Column 3 in the Country Chart column of
the ``License Requirements'' section of an ECCN on the CCL.
(ii) Military-related items controlled for national security
reasons to any destination. These are items that contain NS Column 1 in
the Country Chart column of the ``License Requirements'' section in an
ECCN on the CCL and is controlled by equipment or material entries
ending in the number ``18.''
(iii) Items that are controlled for missile proliferation reasons
to any destination. These are items that have an MT Column 1 in the
Country Chart column of the ``License Requirements'' section of an ECCN
on the CCL.
(iv) All aircraft (powered and unpowered), helicopters, engines,
and related spare parts and components. These are items controlled to
any destination for national security reasons and items controlled to
Syria for anti-terrorism purposes. Such items contain an NS Column 1,
NS Column 2, or AT Column 1 in the Country Chart column of the
``License Requirements'' section of an ECCN on the CCL. Note that,
consistent with the general rule that applies to computing U.S. parts
and components content incorporated in foreign made products, all
aircraft-related items that require a license to Syria will be included
as controlled US content for purposes of such license requirements.
(v) Cryptographic, cryptoanalytic, and cryptologic items controlled
to any destination for national security reasons. Such items contain an
AT Column 1 and an NS Column 1 or NS Column 2 in the Country Chart
column of the ``License Requirements'' section of an ECCN on the CCL.
(vi) Explosive device detectors controlled under ECCN 2A993.
(2) Applications for export and reexport to Syria of all other
items described in paragraph (a) of this section, and not described by
paragraph (b)(1) of this section, will generally be denied if the
export or reexport is destined to a military end-user or for military
end-use. Applications for non-military end-users or for non-military
end-uses will be considered on a case-by-case basis.
(3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2),
of this section, applications for Syria will be considered on a case-
by-case basis if:
(i) The transaction involves the reexport to Syria of items where
Syria was not the intended ultimate destination at the time of original
export from the United States, provided that the exports from the U.S.
occurred prior to the applicable contract sanctity date (or, where the
contract sanctity date is December 16, 1986, prior to June 18, 1987).
(ii) The U.S. content of foreign-produced commodities is 20% or
less by value; or
(iii) The commodities are medical items.
Note to paragraph (b) of this section: Applicants who wish any
of the factors described in paragraph (b) of this section to be
considered in reviewing their license applications must submit
adequate documentation demonstrating the value of the U.S. content,
the specifications and medical use of the equipment, or the date of
export from the United States.
(4) License applications for items reviewed under 6(a) controls
will also be reviewed to determine the applicability of 6(j) controls
to the transaction. When it is determined that an export or reexport
could make a significant contribution to the military potential of
Syria, including its military logistics capability, or could enhance
Syria's ability to support acts of international terrorism, the
Secretaries of State and Commerce will notify the Congress 30 days
prior to issuance of a license.
(c) Contract sanctity. Contract sanctity dates and related
licensing policies for Syria are set forth in Supplement No. 2 to part
742. Applicants who wish a pre-existing contract to be considered must
submit sufficient documentation to establish the existence of a
contract.
(d) U.S. controls. Although the United States seeks cooperation
from like-minded countries in maintaining anti-terrorism controls, at
this time these controls are maintained only by the United States.
Sec. 742.10 Anti-terrorism: Sudan.
(a) License requirements. (1) If AT column 1 or AT column 2 <SUP>1
of the Country Chart (Supplement No. 1 to part 738 of the EAR) is
indicated in the appropriate ECCN, a license is required for export to
Sudan for anti-terrorism purposes.
\1\ AT column 1 refers to items controlled to Iran, Sudan, and
Syria for anti-terrorism purposes. AT column 2 refers to additional
items controlled to Iran and Sudan for anti-terrorism purposes. In
addition, items included in ECCNs 2A994, 2D994 and 2E994 are
controlled to Iran for anti-terrorism purposes.
---------------------------------------------------------------------------
(2) If AT column 1 or AT column 2 of the Country Chart (Supplement
No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a
license is required for reexport to Sudan for anti-terrorism purposes,
except for ECCNs 2A994, 3A993, 5A992, 5A995, 6A990, 6A994, 7A994,
8A992, 8A994, 9A990, 9A992 and 9A994. In addition, items in these ECCNs
are not counted as controlled U.S. content for the purpose
[[Page 12792]]
of determining license requirements for U.S. parts, components or
materials incorporated into foreign made products. However, the export
from the United States to any destination with knowledge that they will
be reexported directly or indirectly, in whole or in part to Sudan is
prohibited without a license. See Sec. 740.9 of the EAR for additional
information.
(3) The Secretary of State has designated Sudan as a country whose
government has repeatedly provided support for acts of international
terrorism.
(4) In support of U.S. foreign policy against terrorism, BXA
maintains anti-terrorism controls on the export and reexport to Sudan
of items described in Supplement No. 2 to part 742.
(i) Items described in paragraph (c)(1) through (c)(5) of
Supplement No. 2 to part 742 if destined to military, police,
intelligence or other sensitive end-users in Sudan are controlled under
section 6(j) of the Export Administration Act, as amended (EAA).
(ii) Items listed in paragraphs (c)(1) through (c)(5) of Supplement
No. 2 to part 742 destined to other end-users in Sudan, as well as
items to all end-users listed in (c)(6) through (c)(14) and (c)(16)
through (c)(39) of Supplement No. 2 to part 742 are controlled to Sudan
under section 6(a) of the EAA.
(b) Licensing policy. (1) Applications for export and reexport to
all end-users in Sudan of the following items will generally be denied:
(i) Items that are controlled for chemical and biological weapons
proliferation reasons to any destination. These are items that contain
CB Column 1, CB Column 2, or CB Column 3 in the Country Chart column of
the ``License Requirements'' section of an ECCN on the CCL.
(ii) Military-related items controlled for national security
reasons to any destination. These are items that contain NS Column 1 in
the Country Chart column of the ``License Requirements'' section of an
ECCN on the CCL and is controlled by equipment or material entries
ending in the number ``18.''
(iii) Items that are controlled for missile proliferation reasons
to any destination. These are items that contain a MT Column 1 in the
Country Chart column of the ``License Requirements'' section of an ECCN
on the CCL.
(iv) All aircraft (powered and unpowered), helicopters, engines,
and related spare parts and components. These are items controlled to
any destination for national security reasons and items controlled to
Sudan for anti-terrorism reasons. Such items contain an NS Column 1, NS
Column 2, or AT Column 1 in the Country Chart column of the ``License
Requirements'' section of an ECCN on the CCL. Note that, consistent
with the general rule that applies to computing U.S. parts and
components content incorporated in foreign made products, all aircraft-
related items that require a license to Sudan will be included as
controlled US content for purposes of such license requirements.
(v) Cryptographic, cryptoanalytic, and cryptologic items controlled
to any destination. These are items that contain an NS Column 1, NS
Column 2, AT Column 1 or AT Column 2 in the Country Chart column of the
``License Requirements'' section of an ECCN on the CCL.
(vi) Explosive device detectors controlled under ECCN 2A993.
(2) Applications for the export and reexport of all other items
described in paragraph (a) of this section, and not described in
paragraph (b)(1) of this section, will be denied if the export or
reexport is destined to a military end-user or for military end-use.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2)
of this section, applications for Sudan will be considered on a case-
by-case basis if:
(i) The transaction involves the reexport to Sudan of items where
Sudan was not the intended ultimate destination at the time of original
export from the United States, provided that the exports from the U.S.
occurred prior to the applicable contract sanctity date.
(ii) The U.S. content of foreign-produced commodities is 20% or
less by value; or
(iii) The commodities are medical items.
Note to paragraph (b) of this section: Applicants who wish any
of the factors described in paragraph (b)(4) of this section to be
considered in reviewing their license applications must submit
adequate documentation demonstrating the value of the U.S. content,
the specifications and medical use of the equipment, or the date of
export from the United States.
(4) License applications for items reviewed under 6(a) controls
will also be reviewed to determine the applicability of 6(j) controls
to the transaction. When it is determined that an export or reexport
could make a significant contribution to the military potential of
Sudan, including its military logistics capability, or could enhance
Sudan's ability to support acts of international terrorism, the
appropriate committees of the Congress will be notified 30 days before
issuance of a license to export or reexport such items.
(c) Contract sanctity. Contract sanctity dates and related
licensing information for Sudan are set forth in Supplement No. 2 to
part 742. Applicants who wish a pre-existing contract to be considered
must submit sufficient documentation to establish the existence of a
contract.
(d) U.S. controls. Although the United States seeks cooperation
from like-minded countries in maintaining anti-terrorism controls, at
this time these controls are maintained only by the United States.
Sec. 742.11 Specially designed implements of torture.
(a) License requirements. In support of U.S. foreign policy to
promote the observance of human rights throughout the world, a license
is required to export specially designed implements of torture
controlled by 0A983 to all destinations, including Canada.
(b) Licensing policy. Applications for such licenses will generally
be denied to all destinations.
(c) Contract sanctity. The contract sanctity date is November 9,
1995. Contract sanctity will be a factor in considering only
applications for export to the NATO countries, Japan, Australia, and
New Zealand.
(d) U.S. controls. Although the United States seeks cooperation
from like-minded countries in maintaining controls on implements of
torture, at this time these controls are maintained only by the United
States.
Sec. 742.12 High performance computers.
(a) License and recordkeeping requirements. (1) This section
contains special provisions for exports, reexports, and certain intra-
country transfers of high performance computers, including software,
and technology. This section affects the following ECCNs: 4A001, 4A002,
4A003, 4D001, 4D002, and 4E001. It applies to computers with a
Composite Theoretical Performance (CTP) greater than 2000, stated in
Million Theoretical Operations Per Second (MTOPS). Licenses are
required under this section for ECCN's having an ``XP'' under ``Reason
for Control'' when License Exception CTP is not available (see
Sec. 740.3(e) of the EAR). License requirements reflected in this
section are based on particular destinations, end-users, or end-uses.
For the calculation of CTP, see the Technical Note that follows the
Advisory Notes for Category 4 in the Commerce Control List. Note that
License Exception CTP contains restrictions on access by nationals of
certain countries, and on reexports and transfers of computers.
[[Page 12793]]
(2) In recognition of the strategic and proliferation significance
of high performance computers, a license is required for the export or
reexport of high performance computers to destinations, end-users, and
end-uses, as specified in this section and on the CCL. These license
requirements supplement requirements that apply for other control
reasons, such as nuclear nonproliferation provided in Sec. 742.3 of the
EAR. The license requirements described in this Sec. 742.12 are not
reflected on the Country Chart (Supplement No. 1 to part 738 of the
EAR). Four Computer Country Tiers have been established for the
purposes of these controls. Countries included in Computer Tiers 1, 2,
and 3 are listed in License Exception CTP in Sec. 740.3(e) of the EAR.
Computer Tier 4 consists of Cuba, Iran, Iraq, Libya, North Korea,
Sudan, and Syria.
(3) Exporters must keep accurate records of each export to any
destination of a computer with a CTP equal to or greater than 2,000
MTOPS, irrespective of whether the export is made under License
Exception or otherwise. These records will be made available to the
U.S. Government upon request. The records will include the following
information:
(i) Date of shipment;
(ii) Name and address of the end-user and each intermediate
consignee;
(iii) CTP of each computer in shipment;
(iv) Volume of computers in shipment;
(v) Dollar value of shipment; and
(vi) End-Use.
(4) Exporters are hereby notified that consistent with the
commitments reached with the Wassenaar Arrangement, exporters will be
required to submit to BXA consolidated reports on exports to certain
destinations every six months of computers with a CTP equal to or
greater than 2,000 MTOPS. These reports will include for each such
export all the information required to be kept pursuant to paragraph
(3) of Sec. 742.12(a). Exports of computers above 2,000 MTOPS to
certain destinations will be subject to the reporting requirement once
the initial elements of the Wassenaar Arrangement are adopted, and the
first report will be due thereafter.
(b) Licensing policy. Licensing policies described in this section
vary according to the country of destination, and the end-use or end-
user involved in the transaction. Note that in addition, license
applications for items covered by Sec. 742.12 will also be reviewed
under the nuclear nonproliferation licensing policy in Sec. 742.3(b).
In certain cases, licenses may be subject to safeguard conditions. The
specific conditions that may be imposed by BXA will depend on the
country of destination, and the end-use or end-user of the export. BXA
may also require end-use certification which, in appropriate cases, is
certified by the government of the importing country. The range of
possible safeguard conditions and related information are provided in
Supplement No. 3 to part 742.
(1) Computer Tier 1.
(i) License requirement. No license is required under this
Sec. 742.12 for exports or reexports of computers to and among
countries listed in Computer Tier 1, for consumption in such countries
or other disposition in accordance with the EAR.
(ii) Licensing policy. A license is not required under this
Sec. 742.12.
(2) Computer Tier 2.
(i) License requirement. A license is required to export or
reexport a computer having a Composite Theoretical Performance (CTP)
greater than 10,000 Millions of Theoretical Operations Per Second
(MTOPS) to a country in Computer Tier 2.
(ii) Licensing policy. License applications for a country in
Computer Tier 2 will generally be approved.
(3) Computer Tier 3.
(i) License requirement.
(A) A license is required to export or reexport computers with a
CTP greater than 2,000 MTOPS to countries in Computer Tier 3 to
military end-users and end-uses and to nuclear, chemical, biological,
or missile end-users and end-uses defined in part 744 of the EAR in
Computer Tier 3 countries.
(B) A license is required to export or reexport computers with a
CTP greater than 7,000 MTOPS to all end-users and end-uses located in
countries in Computer Tier 3.
(ii) Licensing policy. License applications for exports and
reexports to military end-users and end-uses and nuclear, chemical,
biological, or missile end-users and end-uses defined in part 744 of
the EAR in countries in Computer Tier 3 will be reviewed on a case-by-
case basis using the following criteria:
(A) The presence and activities of countries and end-users of
national security and proliferation concern and the relationships that
exist between the government of the importing country and such
countries and end-users;
(B) The ultimate consignee's participation in, or support of, any
of the following:
(1) Activities that involve national security concerns; or
(2) Nuclear, chemical, biological or missile proliferation
activities described in part 744 of the EAR;
(C) The extent to which the importing country is involved in
nuclear, chemical, biological, or missile proliferation activities
described in part 744 of the EAR;
(D) The end-user, whether the end-use is single-purpose or
multiple-purpose.
(iii) Licensing policy for other end-uses and end-users. License
applications for exports and reexports to other end-users and end-uses
located in countries in Computer Tier 3 will generally be approved.
(4) Computer Tier 4.
(i) License requirement. A license is required to export or
reexport any items covered by this section to a country in Country Tier
4.
(ii) Licensing policy. The licensing policies for countries in
Computer Tier 4 are the same as described in the following EAR
sections: for Sudan see Sec. 742.10(b); for Syria see Sec. 742.9(b);
for Cuba see Sec. 746.2; for Iran see Sec. 746.7; for Iraq see
Sec. 746.3; for Libya see Sec. 746.4; and for North Korea see
Sec. 746.5.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications involving exports and reexports of
high performance computers.
(d) High performance computer regime. The United States and Japan
participate in a high performance computer regime. Other countries are
expected to join. The regime provides uniform and effective safeguards
to protect high performance computers from unauthorized destinations,
end-users and end-uses.
Sec. 742.13 Communications intercepting devices.
(a) License requirement. (1) As set forth in ECCN 5A980, a license
is required for the export or reexport to any destination, including
Canada, of any electronic, mechanical, or other device primarily useful
for surreptitious interception of wire or oral communications. This
control implements a provision of the Omnibus Crime Control and Safe
Streets Act of 1968 (Public Law 90-361). This license requirement is
not reflected on the Country Chart (Supplement No. 1 to part 738 of the
EAR).
(2) Communications intercepting devices are electronic, mechanical,
or other devices that can be used for interception of wire or oral
communications if their design renders them primarily useful for
surreptitious listening even though they may also have innocent uses. A
device is not restricted merely because it is small or
[[Page 12794]]
may be adapted to wiretapping or eavesdropping. Some examples of
devices to which these restrictions apply are: the martini olive
transmitter; the infinity transmitter; the spike mike; and the
disguised microphone appearing as a wristwatch, cufflink, or cigarette
pack; etc. The restrictions do not apply to devices such as the
parabolic microphone or other directional microphones ordinarily used
by broadcasters at sports events, since these devices are not primarily
useful for surreptitious listening.
(b) Licensing policy. (1) License applications will generally be
approved for:
(i) A provider of wire or electronic communication services or an
officer, agent, or employee of, or person under contract with, such a
provider in the normal course of the business of providing that wire or
electronic communication service; and
(ii) Officers, agents, or employees of, or person under contract
with the United States, one of the 50 States, or a political
subdivision thereof, when engaged in the normal course of government
activities.
(2) Other applications will generally be denied.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications involving exports and reexports of
communications interception devices.
(d) U.S. controls. Controls on this equipment are maintained by the
United States government in accordance with the Omnibus Crime Control
and Safe Streets Act of 1968.
Supplement No. 1 to Part 742--Nonproliferation of Chemical and
Biological Weapons
Note: Exports and reexports of items in performance of contracts
entered into before the applicable contract sanctity date(s) will be
eligible for review on a case-by-case basis or other applicable
licensing policies that were in effect prior to the contract
sanctity date. The contract sanctity dates set forth in this
Supplement are for the guidance of exporters. Contract sanctity
dates are established in the course of the imposition of foreign
policy controls on specific items and are the relevant dates for the
purpose of licensing determinations involving such items. If you
believe that a specific contract sanctity date is applicable to your
transaction, you should include all relevant information with your
license application.
(1) The contract sanctity date for exports to Iran or Syria of
dimethyl methylphosphonate, methyl phosphonyldifluoride, phosphorous
oxychloride, thiodiglycol, dimethylamine hydrochloride,
dimethylamine, ethylene chlorohydrin (2-chloroethanol), and
potassium fluoride is April 28, 1986.
(2) The contract sanctity date for exports to Iran or Syria of
dimethyl phosphite (dimethyl hydrogen phosphite), methyl
phosphonyldichloride, 3-quinuclidinol, N,N-diisopropylamino-ethane-
2-thiol, N,N-diisopropylaminoethyl-2-chloride, 3-hydroxy-1-
methylpiperidine, trimethyl phosphite, phosphorous trichloride, and
thionyl chloride is July 6, 1987.
(3) The contract sanctity date for exports to Iran or Syria of
items in ECCNs 1C351, 1C352, 1C353 and 1C354 is February 22, 1989.
(4) The contract sanctity date for exports to Iran of dimethyl
methylphosphonate, methylphosphonyl difluoride, phosphorus
oxychloride, and thiodiglycol is February 22, 1989.
(5) The contract sanctity date for exports to Iran, Libya or
Syria of potassium hydrogen fluoride, ammonium hydrogen fluoride,
sodium fluoride, sodium bifluoride, phosphorus pentasulfide, sodium
cyanide, triethanolamine, diisopropylamine, sodium sulfide, and N,N
-diethylethanolamine is December 12, 1989.
(6) The contract sanctity date for exports to all destinations
(except Iran or Syria) of phosphorus trichloride, trimethyl
phosphite, and thionyl chloride is December 12, 1989. For exports to
Iran or Syria, paragraph (2) of this Supplement applies.
(7) The contract sanctity date for exports to all destinations
(except Iran, Libya or Syria) of 2-chloroethanol and triethanolamine
is January 15, 1991. For exports of 2-chloroethanol to Iran or
Syria, paragraph (1) of this Supplement applies. For exports of
triethanolamine to Iran, Libya or Syria, paragraph (5) of this
Supplement applies.
(8) The contract sanctity date for exports to all destinations
(except Iran, Libya or Syria) of chemicals controlled by ECCN 1C350
is March 7, 1991, except for applications to export the following
chemicals: 2-chloroethanol, dimethyl methylphosphonate, dimethyl
phosphite (dimethyl hydrogen phosphite), methylphosphonyl
dichloride, methylphosphonyl difluoride, phosphorus oxychloride,
phosphorous trichloride, thiodiglycol, thionyl chloride
triethanolamine, and trimethyl phosphite. (See also paragraphs (6)
and (7) of this Supplement.) For exports to Iran, Libya or Syria,
see paragraphs (1) through (6) of this Supplement.
(9) The contract sanctity date for exports and reexports of the
following commodities and technical data is March 7, 1991:
(i) Equipment (for producing chemical weapon precursors and
chemical warfare agents) described in ECCNs 2B350 and 2B351;
(ii) Equipment and materials (for producing biological agents)
described in ECCN 2B352; and
(iii) Technology (for the production of equipment and materials
described in 2B351 and 2B352) described in ECCN 2E301.
(10) The contract sanctity date for license applications subject
to Sec. 742.2(b)(3) of this part is March 7, 1991.
(11) The contract sanctity date for reexports of chemicals
controlled under ECCN 1C350 is March 7, 1991, except that the
contract sanctity date for reexports of these chemicals to Iran,
Libya or Syria is December 12, 1989.
(12) The contract sanctity date for reexports of human
pathogens, zoonoses, toxins, animal pathogens, genetically modified
microorganisms and plant pathogens controlled by ECCNs 1C351, 1C352,
1C353 and 1C354 is March 7, 1991.
Supplement No. 2 to Part 742--Anti-Terrorism Controls; Iran, Syria, and
Sudan Contract Sanctity Dates and Related Policies
Note: Exports and reexports of items in performance of contracts
entered into before the applicable contract sanctity date(s) will be
eligible for review on a case-by-case basis or other applicable
licensing policies that were in effect prior to the contract
sanctity date. The contract sanctity dates set forth in this
Supplement are for the guidance of exporters. Contract sanctity
dates are established in the course of the imposition of foreign
policy controls on specific items and are the relevant dates for the
purpose of licensing determinations involving such items. If you
believe that a specific contract sanctity date is applicable to your
transaction, you should include all relevant information with your
license application. BXA will determine any applicable contract
sanctity date at the time an application with relevant supporting
documents is submitted.
(a) Terrorist-supporting countries. The Secretary of State has
designated Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria as
countries whose governments have repeatedly provided support for
acts of international terrorism under section 6(j) of the Export
Administration Act (EAA).
(b) Items controlled under EAA sections 6(j) and 6(a). Whenever
the Secretary of State determines that an export or reexport to any
of these countries could make a significant contribution to the
military potential of such country, including its military logistics
capability, or could enhance the ability of such country to support
acts of international terrorism, the item is subject to mandatory
control under section EAA 6(j) and the Secretaries of Commerce and
State are required to notify appropriate Committees of the Congress
30 days before a license for such an item may be issued.
(1) On December 28, 1993, the Secretary of State determined that
the export to Cuba, Libya, Iran, Iraq, North Korea, Sudan or Syria
of items described in paragraphs (c)(1) through (c)(5) of this
Supplement, if destined to military, police, intelligence or other
sensitive end-users, are controlled under EAA section 6(j).
Therefore, the 30-day advance Congressional notification requirement
applies to the export or reexport of these items to sensitive end-
users in any of these countries.
(2) License applications for items controlled to designated
terrorist-supporting countries under EAA section 6(a) will also be
reviewed to determine whether the Congressional notification
requirements of EAA section 6(j) apply.
(3) Items controlled for anti-terrorism reasons under section
6(a) to Iran, Sudan and Syria are:
[[Page 12795]]
(i) items described in paragraphs (c)(1) through (c)(5) to non-
sensitive end-users, and
(ii) the following items to all end-users: for Iran, items in
paragraphs (c)(6) through (c)(39) of this Supplement; for Sudan,
items in paragraphs (c)(6) through (c)(14), and (c)(16) through
(c)(39) of this Supplement; for Syria, items in paragraphs (c)(6)
through (c)(8), (c)(10) through (c)(14), (c)(16) through (c)(19),
and (c)(22) through (c)(39) of this Supplement.
(c) The license requirements and licensing policies for items
controlled for anti-terrorism reasons to Iran, Syria and Sudan are
generally described in Secs. 742.8, 742.9 and 742.10 of this part.
This Supplement provides guidance on licensing policies for Syria
and Sudan and related contract sanctity dates that may be available
for transactions benefitting from pre-existing contracts involving
Syria and Sudan. This supplement also provides information on
licensing policies and contract sanctity dates for Iran. Exporters
are advised that the Treasury Department's Office of Foreign Assets
Control administers a comprehensive trade and investment embargo
against Iran (See Executive Orders 12957 and 12959 of March 15, 1995
and May 6, 1995, respectively.) Exporters are further advised that
exports and reexports to Iran of items that are listed on the CCL as
requiring a license for national security or foreign policy reasons
are subject to a policy of denial under the Iran-Iraq Arms Non-
Proliferation Act of October 23, 1992 (50 U.S.C. 1701 note (1994)).
Transactions involving Iran and benefitting from a contract that
pre-dates October 23, 1992 may be considered under the applicable
licensing policy in effect prior to that date.
(1) All items subject to national security controls.
(i) Iran. Applications for all end-users in Iran will generally
be denied.
(A) Contract sanctity date for military end-users or end-uses of
items valued at $7 million or more: January 23, 1984.
(B) Contract sanctity date for military end-users or end-uses of
all other national security controlled items: September 28, 1984.
(C) Contract sanctity date for non-military end-users or end-
uses: August 28, 1991, unless otherwise specified in paragraphs
(c)(2) through (c)(39) of this Supplement.
(ii) Syria. Applications for military end-users or military end-
uses in Syria will generally be denied. Applications for non-
military end-users or end-uses will be considered on a case-by-case
basis, unless otherwise specified in paragraphs (c)(2) through
(c)(39) of this Supplement. No contract sanctity date is available
for items valued at $7 million or more to military end-users or end-
uses. The contract sanctity date for all other items for all end-
users: December 16, 1986.
(iii) Sudan. Applications for military end-users or military
end-uses in Sudan will generally be denied. Applications for non-
military end-users or end-uses will be considered on a case-by-case
basis. Contract sanctity date: January 19, 1996, unless a prior
contract sanctity date applies (e.g., items first controlled to
Sudan for foreign policy reasons under EAA section 6(j) have a
contract sanctity date of December 28, 1993).
(2) All items subject to chemical and biological weapons
proliferation controls. Applications for all end-users in Iran,
Syria or Sudan of these items will generally be denied. See
Supplement No. 1 to part 742 for contract sanctity dates for Iran
and Syria. Contract sanctity date for Sudan: January 19, 1996,
unless a prior contract sanctity date applies (e.g., items first
controlled to Sudan for foreign policy reasons under EAA section
6(j) have a contract sanctity date of December 28, 1993), or unless
an earlier date for any item is listed in Supplement 1 to part 742.
(3) All items subject to missile proliferation controls (MTCR).
Applications for all end-users in Iran, Syria or Sudan will
generally be denied. Contract sanctity provisions for Iran and Syria
are not available. Contract sanctity date for Sudan: January 19,
1996, unless a prior contract sanctity date applies (e.g., items
first controlled to Sudan for foreign policy reasons under EAA
section 6(j) have a contract sanctity date of December 28, 1993).
(4) All items subject to nuclear weapons proliferation controls
(NRL).
(i) Iran. Applications for all end-users in Iran will generally
be denied. No contract sanctity date is available.
(ii) Syria. Applications for military end-users or end-uses to
Syria will generally be denied. Applications for non-military end-
users or end-uses will be considered on a case-by-case basis. No
contract sanctity date is available.
(iii) Sudan. Applications for military end-users or end-uses in
Sudan will generally be denied. Applications for export and reexport
to non-military end-users or end-uses will be considered on a case-
by-case basis. No contract sanctity date is available.
(5) All military-related items, i.e., applications for export
and reexport of items controlled by CCL entries ending with the
number ``18''.
(i) Iran. Applications for all end-users in Iran will generally
be denied. Contract sanctity date: see paragraph (c)(1)(i) of this
Supplement.
(ii) Syria. Applications for all end-users in Syria will
generally be denied. Contract sanctity date: see paragraph
(c)(1)(ii) of this Supplement.
(iii) Sudan. Applications for all end-users in Sudan will
generally be denied. Contract sanctity date for Sudan: January 19,
1996, unless a prior contract sanctity date applies (e.g., items
first controlled to Sudan for foreign policy reasons under EAA
section 6(j) have a contract sanctity date of December 28, 1993).
(6) All aircraft (powered and unpowered), helicopters, engines,
and related spare parts and components.
(i) Iran. Applications for all end-users in Iran will generally
be denied.
(A) Contract sanctity date for helicopters exceeding 10,000 lbs.
empty weight or fixed wing aircraft valued at $3 million or more:
January 23, 1984.
(B) Contract sanctity date for other helicopters and aircraft
and gas turbine engines therefor: September 28, 1984.
(C) Contract sanctity date for helicopter or aircraft parts and
components controlled by 9A994: October 22, 1987.
(ii) Syria. Applications for all end-users in Syria will
generally be denied.
(A) There is no contract sanctity for helicopters exceeding
10,000 lbs. empty weight or fixed wing aircraft valued at $3 million
or more; except that passenger aircraft, regardless of value, have a
contract sanctity date of December 16, 1986, if destined for a
regularly scheduled airline with assurance against military use.
(B) Contract sanctity date for helicopters with 10,000 lbs.
empty weight or less: April 28, 1986.
(C) Contract sanctity date for other aircraft and gas turbine
engines therefor: December 16, 1986.
(D) Contract sanctity date for helicopter or aircraft parts and
components controlled by 9A994: August 28, 1991.
(iii) Sudan. Applications for all end-users in Sudan will
generally be denied. Contract sanctity date: January 19, 1996.
(7) Heavy duty, on-highway tractors.
(i) Iran. Applications for all end-users in Iran will generally
be denied. Contract sanctity date: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria will generally be denied. Applications for non-
military end-users or for non-military end-uses in Syria will be
considered on a case-by-case basis. Contract sanctity date: August
28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be
considered on a case-by-case basis. Contract sanctity date: January
19, 1996.
(8) Off-highway wheel tractors of carriage capacity 9t (10 tons)
or more.
(i) Iran. Applications for all end-users in Iran will generally
be denied. Contract sanctity date: October 22, 1987.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria will generally be denied. Applications for non-
military end-users or for non-military end-uses in Syria will be
considered on a case-by-case basis. Contract sanctity date: August
28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be
considered on a case-by-case basis. Contract sanctity date: January
19, 1996.
(9) Large diesel engines (greater than 400 horsepower) and parts
to power tank transporters.
(i) Iran. Applications for all end-users in Iran will generally
be denied. Contract sanctity date: October 22, 1987.
(ii) Sudan. Applications for military end-users or for military
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be
considered on a case-by-case basis. Contract sanctity date: January
19, 1996.
(10) Cryptographic, cryptoanalytic, and cryptologic equipment.
(i) Iran. Applications for all end-users in Iran will generally
be denied.
[[Page 12796]]
(A) Contract sanctity date for military end-users or end-uses of
cryptographic, cryptoanalytic, and cryptologic equipment that was
subject to national security controls on October 22, 1987: see
paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity date for all other cryptographic,
cryptoanalytic, and cryptologic equipment for all end-users: October
22, 1987.
(ii) Syria. A license is required for all national security-
controlled cryptographic, cryptoanalytic, and cryptologic equipment
to all end-users. Applications for all end-users in Syria will
generally be denied. Contract sanctity date for cryptographic,
cryptoanalytic, and cryptologic equipment that was subject to
national security controls on August 28, 1991: see paragraph
(c)(1)(ii) of this Supplement.
(iii) Sudan. Applications for all end-users in Sudan of any such
equipment will generally be denied. Contract sanctity date for
Sudan: January 19, 1996, unless a prior contract sanctity date
applies (e.g., items first controlled to Sudan for foreign policy
reasons under EAA section 6(j) have a contract sanctity date of
December 28, 1993).
(11) Navigation, direction finding, and radar equipment.
(i) Iran. Applications for all end-users in Iran will generally
be denied.
(A) Contract sanctity date for military end-users or end-uses of
navigation, direction finding, and radar equipment that was subject
to national security controls on August 28, 1991: see paragraph
(c)(1)(i) of this Supplement.
(B) Contract sanctity date for all other navigation, direction
finding, and radar equipment for all end-users: October 22, 1987.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis.
(A) Contract sanctity date for exports of navigation, direction
finding, and radar equipment that was subject to national security
controls on August 28, 1991: see paragraph (c)(1)(ii) of this
Supplement.
(B) Contract sanctity date for all other navigation, direction
finding, and radar equipment: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be
considered on a case-by-case basis. Contract sanctity date for
Sudan: January 19, 1996, unless a prior contract sanctity date
applies (e.g., items first controlled to Sudan for foreign policy
reasons under EAA section 6(j) have a contract sanctity date of
December 28, 1993).
(12) Electronic test equipment.
(i) Iran. Applications for all end-users in Iran will generally
be denied.
(A) Contract sanctity date for military end-users or end-uses of
electronic test equipment that was subject to national security
controls on October 22, 1987: see paragraph (c)(1)(i) of this
Supplement.
(B) Contract sanctity date for all other electronic test
equipment for all end-users: October 22, 1987.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis.
(A) Contract sanctity date for electronic test equipment that
was subject to national security controls on August 28, 1991: see
paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other electronic test
equipment: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(13) Mobile communications equipment.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied.
(A) Contract sanctity date for military end-users or end-uses of
mobile communications equipment that was subject to national
security controls on October 22, 1987: see paragraph (c)(1)(i) of
this Supplement.
(B) Contract sanctity date for all end-users of all other mobile
communications equipment: October 22, 1987.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis.
(A) Contract sanctity date for mobile communications equipment
that was subject to national security controls on August 28, 1991:
see paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for exports of all other mobile
communications equipment: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(14) Acoustic underwater detection equipment.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied.
(A) Contract sanctity date for military end-users or end-uses of
acoustic underwater detection equipment that was subject to national
security controls on October 22, 1987: see paragraph (c)(1)(i) of
this Supplement.
(B) Contract sanctity date for all other acoustic underwater
detection equipment for all end-users: October 22, 1987.
(ii) Syria. A license is required for acoustic underwater
detection equipment that was subject to national security controls
on August 28, 1991, to all end-users. Applications for military end-
users or for military end-uses in Syria will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis. Contract
sanctity date for acoustic underwater detection equipment that was
subject to national security controls on August 28, 1991: see
paragraph (c)(1)(ii) of this Supplement.
(iii) Sudan. Applications for military end-users or for military
end-uses to Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(15) Portable electric power generators.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied. Contract sanctity date: October
22, 1987.
(ii) Reserved.
(16) Vessels and boats, including inflatable boats.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users or end-uses of
vessels and boats that were subject to national security controls on
October 22, 1987: see paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity date for all other vessels and boats for
all end-users: October 22, 1987.
(ii) Syria. A license is required for national security-
controlled vessels and boats. Applications for military end-users or
for military end-uses in Syria of these items will generally be
denied. Applications for non-military end-users or for non-military
end-uses in Syria will be considered on a case-by-case basis.
Contract sanctity date for vessels and boats that were subject to
national security controls on August 28, 1991: see paragraph
(c)(1)(ii) of this Supplement.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(17) Marine and submarine engines (outboard/inboard, regardless
of horsepower).
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
[[Page 12797]]
(A) Contract sanctity date for military end-users or end-uses of
marine and submarine engines that were subject to national security
controls on October 22, 1987: See paragraph (c)(1)(i) of this
Supplement.
(B) Contract sanctity date for outboard engines of 45 HP or more
for all end-users: September 28, 1984.
(C) Contract sanctity date for all other marine and submarine
engines for all end-users: October 22, 1987.
(ii) Syria. A license is required for all marine and submarine
engines subject to national security controls to all end-users.
Applications for military end-users or for military end-uses in
Syria of these items will generally be denied. Applications for non-
military end-users or for non-military end-uses in Syria will be
considered on a case-by-case basis. Contract sanctity date for
marine and submarine engines that were subject to national security
controls on August 28, 1991: See paragraph (c)(1)(ii) of this
Supplement.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(18) Underwater photographic equipment.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied.
(A) Contract sanctity date for military end-users or end-uses of
underwater photographic equipment that was subject to national
security controls on October 22, 1987: See paragraph (c)(1)(i) of
this Supplement.
(B) Contract sanctity date for all other underwater photographic
equipment for all end-users: October 22, 1987.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis.
(A) Contract sanctity date for underwater photographic equipment
that was subject to national security controls on August 28, 1991:
See paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other underwater photographic
equipment: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(19) Submersible systems.
(i) Iran. Applications for all end-users in Iran of such systems
will generally be denied.
(A) Contract sanctity date for military end-users or end-uses of
submersible systems that were subject to national security controls
on October 22, 1987: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity date for all other submersible systems for
all end-users: October 22, 1987.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such systems will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis.
(A) Contract sanctity date for submersible systems that were
subject to national security controls on August 28, 1991: See
paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other submersible systems:
August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such systems will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(20) Scuba gear and related equipment.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied. No contract sanctity is
available for such items to Iran.
(ii) Sudan. Applications for military end-users and end-uses in
Sudan of these items will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be
considered on a case-by-case basis. Contract sanctity date: January
19, 1996.
(21) Pressurized aircraft breathing equipment.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied. Contract sanctity date: October
22, 1987.
(ii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date: January 19, 1996.
(22) Computer numerically controlled machine tools.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of computer numerically controlled machine tools that were subject
to national security controls on August 28, 1991: See paragraph
(c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other computer numerically
controlled machine tools for all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for computer numerically controlled
machine tools that were subject to national security controls on
August 28, 1991: See paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for exports of all other computer
numerically controlled machine tools: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(23) Vibration test equipment.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of vibration test equipment that was subject to national security
controls on August 28, 1991: See paragraph (c)(1)(i) of this
Supplement.
(B) Contract sanctity dates for all other vibration test
equipment for all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for vibration test equipment that was
subject to national security controls on August 28, 1991: See
paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for exports of all other vibration
test equipment: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(24) Digital computers with a CTP of 6 or above, assemblies,
related equipment, equipment for development or production of
magnetic and optical storage equipment, and materials for
fabrication of head/disk assemblies.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity dates for military end-users and end-uses
of items that were subject to national security controls on August
28, 1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity date for all other items for all end-
users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of
[[Page 12798]]
these items will generally be denied. Applications for non-military
end-users or for non-military end-uses will be considered on a case-
by-case basis.
(A) Contract sanctity dates for items that were subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other items: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(25) Telecommunications equipment.
(i) A license is required for the following telecommunications
equipment:
(A) Radio relay systems or equipment operating at a frequency
equal to or greater than 19.7 GHz or ``spectral efficiency'' greater
than 3 bit/s/Hz;
(B) Fiber optic systems or equipment operating at a wavelength
greater than 1000 nm;
(C) ``Telecommunications transmission systems'' or equipment
with a ``digital transfer rate'' at the highest multiplex level
exceeding 45 Mb/s.
(ii) Iran. Applications for all end-users in Iran of such
equipment will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of telecommunications equipment that was subject to national
security controls on August 28, 1991: See paragraph (c)(1)(i) of
this Supplement.
(B) Contract sanctity dates for all other vibration test
equipment for all end-users: August 28, 1991.
(iii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for exports of telecommunications
equipment that was subject to national security controls on August
28, 1991: See paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for exports of all other
telecommunications equipment: August 28, 1991.
(iv) Sudan. Applications for military end-users or for military
end-uses in Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(26) Microprocessors operating at a clock speed over 25 MHz.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of microprocessors that were subject to national security controls
on August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other microprocessors for
all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for microprocessors that were subject
to national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other microprocessors: August
28, 1991.
(iii) Sudan.Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(27) Semiconductor manufacturing equipment. For Iran, Syria or
Sudan, a license is required for all such equipment described in
ECCNs 3B001 and 3B991.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of semiconductor manufacturing equipment that was subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other microprocessors for
all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for such semiconductor manufacturing
equipment that was subject to national security controls on August
28, 1991: See paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other semiconductor
manufacturing equipment: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(28) Software specially designed for the computer-aided design
and manufacture of integrated circuits.
(i) Iran. Applications for all end-users in Iran of such
software will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of such software that was subject to national security controls on
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other such software for all
end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such software will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for such software that was subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other such software: August
28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such software will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(29) Packet switches. Equipment described in ECCNs 5A001.c and
5A994.
(i) Iran. Applications for all end-users in Iran of such
equipment will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
in Iran of packet switches that were subject to national security
controls on August 28, 1991: See paragraph (c)(1)(i) of this
Supplement.
(B) Contract sanctity dates for all other packet switches for
all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for packet switches that were subject
to national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other packet switches: August
28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such equipment will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(30) Specially designed software for air traffic control
applications that uses any digital signal processing techniques for
automatic target tracking or that has a facility for electronic
tracking.
[[Page 12799]]
(i) Iran. Applications for all end-users in Iran of such
software will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of such software that was subject to national security controls on
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other such software for all
end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such software will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for such software that was subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for exports of such software: August
28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such software will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(31) Gravity meters having static accuracy of less (better) than
100 microgal, or gravity meters of the quartz element (worden) type.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of gravity meters that were subject to national security controls on
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other such gravity meters
for all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for gravity meters that were subject
to national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for exports of all other such gravity
meters: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(32) Magnetometers with a sensitivity lower (better) than 1.0 nt
rms per square root Hertz.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of such magnetometers that were subject to national security
controls on August 28, 1991: See paragraph (c)(1)(i) of this
Supplement.
(B) Contract sanctity dates for all other such magnetometers for
all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for such magnetometers that were
subject to national security controls on August 28, 1991: See
paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other such magnetometers:
August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(33) Fluorocarbon compounds described in ECCN 1C994 for cooling
fluids for radar.
(i) Iran. Applications for all end-users in Iran of such
compounds will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of such fluorocarbon compounds that were subject to national
security controls on August 28, 1991: See paragraph (c)(1)(i) of
this Supplement.
(B) Contract sanctity dates for all other such fluorocarbon
compounds for all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such compounds will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for such fluorocarbon compounds that
were subject to national security controls on August 28, 1991: See
paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other such fluorocarbon
compounds: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such compounds will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(34) High strength organic and inorganic fibers (kevlar)
described in ECCN 1C210.
(i) Iran. Applications for all end-users in Iran of such fibers
will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of high strength organic and inorganic fibers (kevlar) described in
1C210 that were subject to national security controls on August 28,
1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other high strength organic
and inorganic fibers (kevlar) described in 1C210 for all end-users:
August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of such fibers will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for high strength organic and
inorganic fibers (kevlar) described in 1C210 that were subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other high strength organic
and inorganic fibers (kevlar) described in 1C210: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of such fibers will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(35) Machines described in ECCNs 2B003 and 2B993 for cutting
gears up to 1.25 meters in diameter.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users and end-uses
of such machines that were subject to national security controls on
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other such machines for all
end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for machines that were subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other machines: August 28,
1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(36) Aircraft skin and spar milling machines.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
[[Page 12800]]
(A) Contract sanctity date for military end-users and end-uses
of aircraft skin and spar milling machines that were subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(i) of this Supplement.
(B) Contract sanctity dates for all other aircraft skin and spar
milling machines to all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
will be considered on a case-by-case basis.
(A) Contract sanctity date for aircraft skin and spar milling
machines that were subject to national security controls on August
28, 1991: See paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other aircraft skin and spar
milling machines: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(37) Manual dimensional inspection machines described in ECCN
2B992.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users or end-uses of
manual dimensional inspection machines that were subject to national
security controls on August 28, 1991: See paragraph (c)(1)(i) of
this Supplement.
(B) Contract sanctity date for all other manual dimensional
inspection machines for all end-users: August 28, 1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis.
(A) Contract sanctity date for such manual dimensional
inspection machines that were subject to national security controls
on August 28, 1991: See paragraph (c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other such manual dimensional
inspection machines: August 28, 1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(38) Robots capable of employing feedback information in real
time processing to generate or modify programs.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied.
(A) Contract sanctity date for military end-users or end-uses of
such robots that were subject to national security controls on
August 28, 1991: See paragraph (c)(1)(i) of this Supplement.
(B) Contract sanctity date for all other such robots: August 28,
1991.
(ii) Syria. Applications for military end-users or for military
end-uses in Syria of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Syria will be considered on a case-by-case basis.
(A) Contract sanctity date for such robots that were subject to
national security controls on August 28, 1991: See paragraph
(c)(1)(ii) of this Supplement.
(B) Contract sanctity date for all other such robots: August 28,
1991.
(iii) Sudan. Applications for military end-users or for military
end-uses in Sudan of these items will generally be denied.
Applications for non-military end-users or for non-military end-uses
in Sudan will be considered on a case-by-case basis. Contract
sanctity date for Sudan: January 19, 1996, unless a prior contract
sanctity date applies (e.g., items first controlled to Sudan for
foreign policy reasons under EAA section 6(j) have a contract
sanctity date of December 28, 1993).
(39) Explosive device detectors.
(i) Iran. Applications for all end-users in Iran of these items
will generally be denied. Contract sanctity date: January 19, 1996.
(ii) Syria. Applications for all end-users in Syria of these
items will generally be denied. Contract sanctity date: January 19,
1996.
(iii) Sudan. Applications for all end-users in Sudan of these
items will generally be denied. Contract sanctity date: January 19,
1996.
Supplement No. 3 to Part 742--High Performance Computers; Safeguard
Conditions and Related Information
This Supplement sets forth the security conditions and safeguard
plans for the export, reexport, or in-country transfer of high
performance computers that may be imposed by BXA to certain
destinations. The licensing policies for the export, reexport, or
in-country transfer of high performance computers are set forth in
Sec. 742.12 of this part.
(a) Safeguard conditions. Following interagency review of the
application, the Bureau of Export Administration (BXA) will instruct
the exporter to submit a safeguard plan signed by the ultimate
consignee and certified by the export control authorities of the
importing country (see Certification by export control authorities
of importing country in this Supplement). The safeguard plan must
indicate that the ultimate consignee agrees to implement those
safeguards required by the BXA as a condition of issuing the
license. BXA will inform exporters concerning which of the following
safeguards will be imposed as license conditions:
(1) The applicant will assume responsibility for providing
adequate security against physical diversion of the computer during
shipment (e.g., delivery by either attended or monitored shipment,
using the most secure route possible--this precludes using the
services or facilities of any country in Computer Tier 4).
(2) There will be no reexport or intra-country transfer of the
computer without prior written authorization from BXA.
(3) The computer systems will be used only for those activities
approved on the license or reexport authorization.
(4) There will be no changes either in the end-users or the end-
uses indicated on the license without prior written authorization by
BXA.
(5) Only software that supports the approved end-uses will be
shipped with the computer system.
(6) The end-user will station security personnel at the computer
using facility to ensure that the appropriate security measures are
implemented.
(7) The exporter will station representatives at the computer
using facility, or make such individuals readily available, to guide
the security personnel in the implementation and operation of the
security measures.
(8) The security personnel will undertake the following measures
under the guidance of the exporter's representatives:
(i) The physical security of the computer using facility;
(ii) The establishment of a system to ensure the round-the-clock
supervision of computer security;
(iii) The inspection, if necessary, of any program or software
to be run on the computer system in order to ensure that all usage
conforms to the conditions of the license;
(iv) The suspension, if necessary, of any run in progress and
the inspection of any output generated by the computer to determine
whether the program runs or output conform with the conditions of
the license;
(v) The inspection of usage logs daily to ensure conformity with
the conditions of the license and the retention of records of these
logs for at least a year;
(vi) The determination of the acceptability of computer users to
ensure conformity with the conditions of the license;
(vii) The immediate reporting of any security breaches or
suspected security breaches to the government of the importing
country and to the exporter's representatives;
(viii) The execution of the following key tasks:
(A) Establishment of new accounts;
(B) Assignment of passwords;
(C) Random sampling of data;
(D) Generation of daily logs;
(ix) The maintenance of the integrity and security of tapes and
data files containing archived user files, log data, or system
backups.
(9) The exporter's representatives will be present when certain
key functions are being carried out (e.g., the establishment of new
accounts, the assignment of passwords, the random sampling of data,
the generating of daily logs, the setting of limits to computer
resources available to users in the development mode, the
certification of
[[Page 12801]]
programs for conformity to the approved end-uses before they are
allowed to run in the production mode, and the modification to
previously certified production programs).
(10) The security personnel and the exporter's representatives
will provide monthly reports on the usage of the computer system and
on the implementation of the safeguards.
(11) The computer system will be housed in one secure building
and protected against theft and unauthorized entry at all times.
(12) Restricted nationals, i.e., nationals of Computer Tier 4
countries, will not be allowed access to computers:
(i) No physical or computational access to computers may be
granted to restricted nationals without prior written authorization
from BXA, except that commercial consignees as described in this
Supplement are prohibited only from giving such nationals user-
accessible programmability without prior written authorization;
(ii) No passwords or IDs may be issued to restricted nationals;
(iii) No work may be performed on the computer on behalf of
restricted nationals; and
(iv) No conscious or direct ties may be established to networks
(including their subscribers) operated by restricted nationals.
(13) Physical access to the computer, the operator consoles, and
sensitive storage areas of the computer using facility will be
controlled by the security personnel, under the guidance and
monitoring of the exporter's representatives, and will be limited to
the fewest number of people needed to maintain and run the computer
system.
(14) The computer will be equipped with the necessary software
to: Permit access to authorized persons only, detect attempts to
gain unauthorized access, set and maintain limits on usage,
establish accountability for usage, and generate logs and other
records of usage. This software will also maintain the integrity of
data and program files, the accounting and audit system, the
password or computational access control system, and the operating
system itself.
(i) The operating system will be configured so that all jobs can
be designated and tracked as either program development jobs or as
production jobs.
(ii) In the program development mode, users will be free,
following verification that their application conforms to the agreed
end-use, to create, edit, or modify programs, to use utilities such
as editors, debuggers, or compilers and to verify program operation.
Programs in the development mode will be subject to inspection as
provided by paragraph (a)(8)(iii) of this Supplement.
(iii) In the production mode, users will have access to the full
range of computer resources, but will be prohibited from modifying
any program or using utilities that could modify any program. Before
being allowed to run in the production mode, a program will have to
be certified for conformity to approved end-uses by the security
personnel and the exporter's representatives.
(iv) Programs certified for execution in the production mode
will be protected from unauthorized modification by appropriate
software and physical security measures. Any modifications to
previously certified production programs will be approved by the
security personnel under the guidance and monitoring of the
exporter's representatives.
(v) The computer will be provided with accounting and audit
software to ensure that detailed logs are maintained to record all
computer usage. A separate log of security-related events will also
be kept.
(vi) For each job executed in the production mode, the operating
system will record execution characteristics in order to permit
generation of a statistical profile of the program executed.
(15) The source code of the operating system will be accessible
only to the exporter's representatives. Only those individuals will
make changes in this source code.
(16) The security personnel, under the guidance of the
exporter's representatives, will change passwords for individuals
frequently and at unpredictable intervals.
(17) The security personnel, under the guidance of the
exporter's representatives, will have the right to deny passwords to
anyone. Passwords will be denied to anyone whose activity does not
conform to the conditions of the license.
(18) Misuse of passwords by users will result in denial of
further access to the computer.
(19) The exporter's representatives will install a strict
password system and provide guidance on its implementation.
(20) Only the exporter's representatives will be trained in
making changes in the password system and only they will make such
changes.
(21) No computer will be networked to other computers outside
the computer center without prior authorization from BXA.
(22) Generally, remote terminals will not be allowed outside the
computer using facility without prior authorization by BXA. If
remote terminals are specifically authorized by the license:
(i) The terminals will have physical security equivalent to the
safeguards at the computer using facility;
(ii) The terminals will be constrained to minimal amounts of
computer resources (CPU time, memory access, number of input-output
operations, and other resources);
(iii) The terminals will not be allowed direct computational
access to the computer (i.e., the security personnel, under the
guidance of the exporter's representatives, will validate the
password and identity of the user of any remote terminals before any
such user is permitted to access the computer); all terminals will
be connected to the computer system by a dedicated access line and a
network access controller.
(23) There will be no direct input to the computer from remote
terminals. Any data originating from outside the computer using
facility, except for direct input from terminals within the same
compound as the computer using facility, will first be processed by
a separate processor or network access controller in order to permit
examination of the data prior to its entry into the computer.
(24) The exporter will perform all maintenance of the computer
system.
(25) Spare parts kept on site will be limited to the minimum
amount. Spares will be kept in an area accessible only to the
exporter's representatives. These representatives will maintain a
strict audit system to account for all spare parts.
(26) No development or production technology on the computer
system will be sent with the computer to the ultimate consignee.
(27) The end-user must immediately report any suspicions or
facts concerning possible violations of the safeguards to the
exporter and to the export control authorities of the importing
country.
(28) The exporter must immediately report any information
concerning possible violations of the safeguards to BXA. A violation
of the safeguards might constitute grounds for suspension or
termination of the license, preventing the shipment of unshipped
spare parts, or the denial of additional licenses for spare parts,
etc.
(29) The end-user will be audited quarterly by an independent
consultant who has been approved by the export control authorities
of the importing and exporting countries, but is employed at the
expense of the end-user. The consultant will audit the computer
usage and the implementation of the safeguards.
(30) The installation and operation of the computer will be
coordinated and controlled by the following management structure:
(i) Steering Committee. The Steering Committee will comprise
nationals of the importing country who will oversee the management
and operation of the computer.
(ii) Security Staff. The Security Staff will be selected by the
end-user or the government of the importing country to ensure that
the required safeguards are implemented. This staff will be
responsible for conducting an annual audit to evaluate physical
security, administrative procedures, and technical controls.
(iii) Technical Consultative Committee. This committee will
comprise technical experts from the importing country and the
exporting company who will provide guidance in operating and
maintaining the computer. At least one member of the committee will
be an employee of the exporter. The committee will approve all
accounts and maintain an accurate list of all users. In addition,
the committee will advise the Steering Committee and the Security
Staff concerning the security measures needed to ensure compliance
with the safeguards required by the license.
(31) An ultimate consignee who is a multiple-purpose end-user,
such as a university, will establish a peer review group comprising
experts who represent each department or application area authorized
for use on the computer under the conditions of the license. This
group shall have the following responsibilities:
(i) Review all requests for computer usage and make
recommendations concerning the acceptability of all projects and
users;
(ii) Submit these recommendations to the Security Staff and
Technical Consultative Committee for review and approval (see
paragraph (a)(28) of this Supplement);
(iii) Establish acceptable computer resource parameters for each
project and
[[Page 12802]]
review the results to verify their conformity with the authorized
end-uses, restrictions, and parameters; and
(iv) Prepare monthly reports that would include a description of
any runs exceeding the established parameters and submit them to the
security staff.
(32) The end-user will also cooperate with any post-shipment
inquiries or inspections by the U.S. Government or exporting company
officials to verify the disposition and/or use of the computer,
including access to the following:
(i) Usage logs, which should include, at a minimum, computer
users, dates, times of use, and amount of system time used;
(ii) Computer access authorization logs, which should include,
at a minimum, computer users, project names, and purpose of
projects.
(33) The end-user will also cooperate with the U.S. Government
or exporting company officials concerning the physical inspection of
the computer using facility, on short notice, at least once a year
and will provide access to all data relevant to computer usage. This
inspection will include:
(i) Analyzing any programs or software run on the computer to
ensure that all usage complies with the authorized end-uses on the
license. This will be done by examining user files (e.g., source
codes, machine codes, input/output data) that are either on-line at
the time of the inspection or that have been previously sampled and
securely stored.
(ii) Checking current and archived usage logs for conformity
with the authorized end-uses and the restrictions imposed by the
license.
(iii) Verifying the acceptability of all computer users in
conformity with the authorized end-uses and the restrictions imposed
by the license.
(34) Usage requests that exceed the quantity of monthly CPU time
specified on the license shall not be approved without prior written
authorization from the BXA. Requests for computational access
approval shall include a description of the intended purpose for
which access is sought.
(35) In addition to, or in lieu of, the normal access by on-site
exporting company staff or its representatives, the company, when
required by the exporting government, will provide a separate remote
electronic access capability to the computer for the purposes of
maintenance, troubleshooting, inspection of work in progress, and
auditing of all work performed on the computer. On-site and central
exporting company hardware and software maintenance facilities, at
the direction of the exporting company staff or its representatives,
to gather information such as:
(i) Statistical profiles of production jobs;
(ii) Logs of jobs run in both production and development mode;
(iii) Logs and reports of security related events.
If such method is used, the remote maintenance facilities will
be considered part of the operating system and protected
accordingly, and will be available only to exporting company
operational staff or its representatives. The maintenance hardware
and software and associated communication links will be protected to
ensure the integrity and authenticity of data and programs and to
prevent tampering with hardware.
(36) The export company staff or its representatives will be
required to provide personnel for a specified period of time at the
computer facility for management, operation, and safeguarding of the
computer.
(b) Certification by export control authorities of importing
country.
(1) The following importing government certification may be
required under Sec. 742.12 of this part:
This is to certify that (name of ultimate consignee) has
declared to (name of appropriate foreign government agency) that the
computer (model name) will be used only for the purposes specified
in the end-use statement and that the ultimate consignee will
establish and adhere to all the safeguard conditions and perform all
other undertakings described in the end-use statement.
The (name of appropriate foreign government agency) will advise
the United States Government of any evidence that might reasonably
indicate the existence of circumstances (e.g., transfer of
ownership) that could affect the objectives of the security
safeguard conditions.
(2) Other importing government assurances regarding prohibited
activities may also be required on a case-by-case basis.
(c) Commercial consignees.
Exports or reexports of computers that are solely dedicated to
the following non-scientific and non-technical commercial business
uses will usually be eligible for a reduced set of security
safeguard conditions:
(1) Financial services (e.g., banking, securities and commodity
exchanges);
(2) Insurance;
(3) Reservation systems;
(4) Point-of-sales systems;
(5) Mailing list maintenance for marketing purposes;
(6) Inventory control for retail/wholesale distribution.
PART 744--CONTROL POLICY: END-USER AND END-USE BASED
Sec.
744.1 General provisions.
744.2 Restrictions on certain nuclear end-uses.
744.3 Restrictions on certain missile end-uses.
744.4 Restrictions on certain chemical and biological weapons end-
uses.
744.5 Restrictions on certain maritime nuclear propulsion end-uses.
744.6 Restrictions on certain activities of U.S. persons.
744.7 Restrictions on certain exports to and for the use of certain
foreign vessels or aircraft.
744.8 Restrictions on certain exports to all countries for Libyan
aircraft.
Supplement No. 1 to Part 744--Missile Technology Projects
Supplement No. 2 to Part 744--[Reserved]
Supplement No. 3 to Part 744--Countries Not Subject to Certain Nuclear
End-Use Restrictions in Sec. 744.2(a)
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. 12058, 3 CFR, 1978
Comp., p. 179; E.O. 12851, 3 CFR 1993 Comp., p. 608; E.O. 12924, 3
CFR, 1994 Comp., p. 917; E.O. 12938, 3 CFR, 1994 Comp., p. 950;
Notice of August 15, 1995 (60 FR 42767, August 17, 1995).
Sec. 744.1 General provisions.
(a) Introduction. In this part, references to the EAR are
references to 15 CFR chapter VII, subchapter C. This part contains
prohibitions against exports, reexports, and selected transfers to
certain end-users and end-uses as introduced under General Prohibition
Four (Denial Orders) and prohibitions against exports or reexports to
certain end-uses as introduced, under General Prohibition Five (End-
use/End-users). Sections 744.2, 744.3, 744.4, and 744.5 prohibit
exports and reexports of items subject to the EAR to defined nuclear,
missile, chemical and biological weapons, and nuclear maritime end-
uses. Section 744.6 prohibits certain activities by U.S. persons in
support of certain nuclear, missile, chemical, or biological end-uses
regardless of whether that support involves the export or reexport of
items subject to the EAR. Sections 744.7 and 744.8 prohibit exports and
reexports of certain items for certain aircraft and vessels. In
addition, these sections include license review standards for export
license applications submitted as required by these sections. It should
also be noted that part 764 of the EAR prohibits exports, reexports and
certain in-country transfers of items subject to the EAR to denied
parties.
(b) Steps. The following are steps you should follow in using the
provisions of this part:
(1) Review end-use and end-user prohibitions. First, review each
end-use and end-user prohibition described in this part to learn the
scope of these prohibitions.
(2) Determine applicability. Second, determine whether any of the
end-use and end-user prohibitions described in this part are applicable
to your planned export, reexport, or other activity. See Supplement No.
1 to part 732 for guidance.
Sec. 744.2 Restrictions on certain nuclear end-uses.
(a) General prohibition. In addition to the license requirements
for items
[[Page 12803]]
specified on the CCL, you may not export or reexport to any
destination, other than countries in the Supplement No. 3 to this part,
any item subject to the EAR without a license if at the time of the
export or reexport you know <SUP>1 the item will be used directly or
indirectly in any one or more of the following activities described in
paragraphs (a)(1), (a)(2), and (a)(3) of this section:
\1\ Part 772 of the EAR defines ``knowledge'' for all of the
EAR except part 760, Restrictive Trade Practices and Boycotts. The
definition, which includes variants such as ``know'' and ``reason to
know'', encompasses more than positive knowledge. Thus, the use of
``know'' in this section in place of the former wording ``know or
have reason to know'' does not lessen or otherwise change the
responsibilities of persons subject to the EAR.
---------------------------------------------------------------------------
(1) Nuclear explosive activities. Nuclear explosive activities,
including research on or development, design, manufacture,
construction, testing or maintenance of any nuclear explosive device,
or components or subsystems of such a device.\2\ \3\
\2\ Nuclear explosive devices and any article, material,
equipment, or device specifically designed or specially modified for
use in the design, development, or fabrication of nuclear weapons or
nuclear explosive devices are subject to export licensing or other
requirements of the Office of Defense Trade Controls, U.S.
Department of State, or the licensing or other restrictions
specified in the Atomic Energy Act of 1954, as amended. Similarly,
items specifically designed or specifically modified for use in
devising, carrying out, or evaluating nuclear weapons tests or
nuclear explosions (except such items as are in normal commercial
use for other purposes) are subject to the same requirements.
\3\ Also see Secs. 744.5 and 748.4 of the EAR for special
provisions relating to technical data for maritime nuclear
propulsion plants and other commodities.
---------------------------------------------------------------------------
(2) Unsafeguarded nuclear activities. Activities including research
on, or development, design, manufacture, construction, operation, or
maintenance of any nuclear reactor, critical facility, facility for the
fabrication of nuclear fuel, facility for the conversion of nuclear
material from one chemical form to another, or separate storage
installation, where there is no obligation to accept International
Atomic Energy Agency (IAEA) safeguards at the relevant facility or
installation when it contains any source or special fissionable
material (regardless of whether or not it contains such material at the
time of export), or where any such obligation is not met.
(3) Safeguarded and unsafeguarded nuclear activities. Safeguarded
and unsafeguarded nuclear fuel cycle activities, including research on
or development, design, manufacture, construction, operation or
maintenance of any of the following facilities, or components for such
facilities: <SUP>4
\4\ Such activities may also require a specific authorization
from the Secretary of Energy pursuant to Sec. 57.b.(2) of the Atomic
Energy Act of 1954, as amended, as implemented by the Department of
Energy's regulations published in 10 CFR 810.
---------------------------------------------------------------------------
(i) Facilities for the chemical processing of irradiated special
nuclear or source material;
(ii) Facilities for the production of heavy water;
(iii) Facilities for the separation of isotopes of source and
special nuclear material; or
(iv) Facilities for the fabrication of nuclear reactor fuel
containing plutonium.
(b) Additional prohibition on exporters or reexporters informed by
BXA. BXA may inform an exporter or reexporter, either individually by
specific notice or through amendment to the EAR, that a license is
required for export or reexport of specified items to specified end-
users, because BXA has determined that there is an unacceptable risk of
use in, or diversion to, any of the activities described in paragraph
(a) of this section. Specific notice is to be given only by, or at the
direction of, the Deputy Assistant Secretary for Export Administration.
When such notice is provided orally, it will be followed by a written
notice within two working days signed by the Deputy Assistant Secretary
for Export Administration. The absence of any such notification does
not excuse the exporter or reexporter from compliance with the license
requirements of paragraph (a) of this section.
(c) Exceptions. Despite the prohibitions described in paragraph (a)
and (b) of this section, you may export technology subject to the EAR
under the License Exception provided in Sec. 740.8(a) of the EAR for
operating technology and software (OTS) and under the License Exception
provided in Sec. 740.8(b) of the EAR for sales technology (STS) but
only to and for use in countries listed in Country Group A:1 (see
Supplement No. 1 to part 740 of the EAR) and New Zealand. All the terms
and conditions of License Exception 13 apply except that this exception
may only be used for exports to the countries listed in Country Group
A:1 and New Zealand notwithstanding the provisions of part 740 of the
EAR.
(d) License review standards. The following factors are among those
used by the United States to determine whether to grant or deny license
applications required under this section:
(1) Whether the commodities, software, or technology to be
transferred are appropriate for the stated end-use and whether that
stated end-use is appropriate for the end-user;
(2) The significance for nuclear purposes of the particular
commodity, software, or technology;
(3) Whether the commodities, software, or technology to be exported
are to be used in research on or for the development, design,
manufacture, construction, operation, or maintenance of any
reprocessing or enrichment facility;
(4) The types of assurances or guarantees given against use for
nuclear explosive purposes or proliferation in the particular case;
(5) Whether the end-user has been engaged in clandestine or illegal
procurement activities;
(6) Whether an application for a license to export to the end-user
has previously been denied, or whether the end-use has previously
diverted items received under a license, License Exception, or NLR to
unauthorized activities;
(7) Whether the export would present an unacceptable risk of
diversion to a nuclear explosive activity or unsafeguarded nuclear
fuel-cycle activity described in Sec. 744.2 of this part; and
(8) The nonproliferation credentials of the importing country,
based on consideration of the following factors:
(i) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of
Nuclear Weapons in Latin America (Treaty of Tlatelolco) (see Supplement
No. 2 to part 742 of the EAR), or to a similar international legally-
binding nuclear nonproliferation agreement;
(ii) Whether the importing country has all of its nuclear
activities, facilities or installations that are operational, being
designed, or under construction, under International Atomic Energy
Agency (IAEA) safeguards or equivalent full scope safeguards;
(iii) Whether there is an agreement for cooperation in the civil
uses of atomic energy between the U.S. and the importing country;
(iv) Whether the actions, statements, and policies of the
government of the importing country are in support of nuclear
nonproliferation and whether that government is in compliance with its
international obligations in the field of nonproliferation;
(v) The degree to which the government of the importing country
cooperates in nonproliferation policy generally (e.g., willingness to
consult on international nonproliferation issues);
(vi) Intelligence data on the importing country's nuclear
intentions and activities.
[[Page 12804]]
Sec. 744.3 Restrictions on certain missile end-uses.
(a) General prohibition. In addition to the license requirements
for items specified on the CCL, you may not export or reexport an item
subject to the EAR to any destination, including Canada, without a
license if at the time of the export or reexport you know the item:
(1) Is destined to or for a project listed in the footnote to
Country Group D:4 (see Supplement No. 1 to part 740 of the EAR); or
(2) Will be used in the design, development, production or use of
missiles in or by a country listed in Country Group D:4, whether or not
that use involves a listed project.
(b) Additional prohibition on exporters informed by BXA. BXA may
inform the exporter or reexporter, either individually by specific
notice or through amendment to the EAR, that a license is required for
a specific export or reexport, or for exports or reexports of specified
items to a certain end-user, because there is an unacceptable risk of
use in or diversion to activities described in paragraph (a) of this
section, anywhere in the world. Specific notice is to be given only by,
or at the direction of, the Deputy Assistant Secretary for Export
Administration. When such notice is provided orally, it will be
followed by a written notice within two working days signed by the
Deputy Assistant Secretary for Export Administration. However, the
absence of any such notification does not excuse the exporter from
compliance with the license requirements of paragraph (a) of this
section. An illustrative list of projects is included in a footnote to
Country Group D:4. Exporters and reexporters are deemed to have been
informed that an individual license is required to export or reexport
to these projects. Exporters should be aware that the list of projects
in Country Group D:4 is not comprehensive; extra caution should be
exercised when making any shipments to a country listed in Country
Group D:4.
(c) Exceptions. No License Exceptions apply to the prohibitions
described in paragraph (a) and (b) of this section.
(d) License review standards for certain missile end-uses. (1)
Applications to export the items subject to this section will be
considered on a case-by-case basis to determine whether the export
would make a material contribution to the proliferation of missiles.
When an export is deemed to make a material contribution, the license
will be denied.
(2) The following factors are among those that will be considered
to determine what action should be taken on an application required by
this section:
(i) The specific nature of the end-use;
(ii) The significance of the export in terms of its contribution to
the design, development, production, or use of missiles;
(iii) The capabilities and objectives of the missile and space
programs of the recipient country;
(iv) The non-proliferation credentials of the importing country;
(v) The types of assurances or guarantees against design,
development, production or use for missiles delivery purposes that are
given in a particular case; and
(vi) The existence of a pre-existing contract.
Sec. 744.4 Restrictions on certain chemical and biological weapons
end-uses.
(a) General prohibition. In addition to the license requirements
for items specified on the CCL, you may not export or reexport an item
subject to the EAR to any destination, including Canada, without a
license if at the time of the export or reexport you know the item will
be used in the design, development, production, stockpiling, or use of
chemical or biological weapons in or by a country listed in Country
Group D:3 (see Supplement No. 1 to part 740 of the EAR).
(b) Additional prohibition on exporters informed by BXA. BXA may
inform the exporter or reexporter, either individually by specific
notice or through amendment to the EAR, that a license is required for
a specific export or reexport, or for export or reexport of specified
items to a certain end-user, because there is an unacceptable risk of
use in or diversion to such activities, anywhere in the world. Specific
notice is to be given only by, or at the direction of, the Deputy
Assistant Secretary for Export Administration. When such notice is
provided orally, it will be followed by a written notice within two
working days signed by the Deputy Assistant Secretary for Export
Administration. However, the absence of any such notification does not
excuse the exporter from compliance with the license requirements of
paragraph (a) of this section.
(c) Exceptions. No License Exceptions apply to the prohibitions
described in paragraphs (a) and (b) of this section.
(d) License review standards. (1) Applications to export or
reexport items subject to this section will be considered on a case-by-
case basis to determine whether the export or reexport would make a
material contribution to the design, development, production,
stockpiling, or use of chemical or biological weapons. When an export
is deemed to make such a contribution, the license will be denied.
(2) The following factors are among those that will be considered
to determine what action should be taken on an application required
under this section:
(i) The specific nature of the end-use;
(ii) The significance of the export in terms of its contribution to
the design, development, production, stockpiling, or use of chemical or
biological weapons;
(iii) The non-proliferation credentials of the importing country;
(iv) The types of assurances or guarantees against design,
development, production, stockpiling, or use of chemical or biological
weapons that are given in a particular case; and
(v) The existence of a pre-existing contract.<SUP>5
\5\ See Supplement No. 1 to part 742 of the EAR for relevant
contract sanctity dates.
---------------------------------------------------------------------------
Sec. 744.5 Restrictions on certain maritime nuclear propulsion end-
uses.
(a) General prohibition. In addition to the license requirements
for items specified on the CCL, you may not export or reexport certain
technology subject to the EAR to any destination, including Canada,
without a license if at the time of the export or reexport you know the
item is for use in connection with a foreign maritime nuclear
propulsion project. This prohibition applies to any technology relating
to maritime nuclear propulsion plants, their land prototypes, and
special facilities for their construction, support, or maintenance,
including any machinery, devices, components, or equipment specifically
developed or designed for use in such plants or facilities.
(b) Exceptions. The exceptions provided in part 740 of the EAR do
not apply to the prohibitions described in paragraph (a) of this
section.
(c) License review standards. It is the policy of the United States
Government not to participate in and not to authorize United States
firms or individuals to participate in foreign naval nuclear propulsion
plant projects, except under an Agreement for Cooperation on naval
nuclear propulsion executed in accordance with Sec. 123(d) of the
Atomic Energy Act of 1954. However, it is the policy of the United
States Government to encourage United States firms and individuals to
participate in maritime (civil) nuclear propulsion plant projects in
friendly foreign countries provided
[[Page 12805]]
that United States naval nuclear propulsion information is not
disclosed.
Sec. 744.6 Restrictions on certain activities of U.S. persons.
(a) General prohibitions--(1) Activities related to exports. (i) No
U.S. person as defined in paragraph (c) of this section may, without a
license from BXA, export, reexport, or transfer to or in any country
other country, any item where that person knows that such item:
(A) Will be used in the design, development, production, or use of
nuclear explosive devices in or by a country listed in Country Group
D:2 (see Supplement No. 1 to part 740 of the EAR).
(B) Will be used in the design, development, production, or use of
missiles in or by a country listed in Country Group D:4 (see Supplement
No. 1 to part 740 of the EAR); or
(C) Will be used in the design, development, production,
stockpiling, or use of chemical or biological weapons in or by a
country listed in Country Group D:3 (see Supplement No. 1 to part 740
of the EAR).
(ii) No U.S. person shall, without a license from BXA, knowingly
support an export, reexport, or transfer that does not have a license
as required by this section. Support means any action, including
financing, transportation, and freight forwarding, by which a person
facilitates an export, reexport, or transfer without being the actual
exporter or reexporter.
(2) Other activities unrelated to exports. No U.S. person shall,
without a license from BXA:
(i) Perform any contract, service, or employment that the U.S.
person knows will directly assist in the design, development,
production, or use of missiles in or by a country listed in Country
Group D:4 (see Supplement No. 1 to part 740 of the EAR); or
(ii) Perform any contract, service, or employment that the U.S.
person knows directly will directly assist in the design, development,
production, stockpiling, or use of chemical or biological weapons in or
by a country listed in Country Group D:3 (see Supplement No. 1 to part
740 of the EAR).
(3) Whole plant requirement. No U.S. person shall, without a
license from BXA, participate in the design, construction, export, or
reexport of a whole plant to make chemical weapons precursors
identified in ECCN 1C350, in countries other than those listed in
Country Group A:3 (Australia Group) (See Supplement No. 1 to part 740
of the EAR).
(b) Additional prohibitions on U.S. persons informed by BXA. BXA
may inform U.S. persons, either individually or through amendment to
the EAR, that a license is required because an activity could involve
the types of participation and support described in paragraph (a) of
this section anywhere in the world.
Specific notice is to be given only by, or at the direction of, the
Deputy Assistant Secretary for Export Administration. When such notice
is provided orally, it will be followed by a written notice within two
working days signed by the Deputy Assistant Secretary for Export
Administration. However, the absence of any such notification does not
excuse the exporter from compliance with the license requirements of
paragraph (a) of this section.
(c) Definition of U.S. person. For purposes of this section, the
term U.S. person includes:
(1) Any individual who is a citizen of the United States, a
permanent resident alien of the United States, or a protected
individual as defined by 8 U.S.C. 1324b(a)(3);
(2) Any juridical person organized under the laws of the United
States or any jurisdiction within the United States, including foreign
branches; and
(3) Any person in the United States.
(d) Exceptions. No License Exceptions apply to the prohibitions
described in paragraphs (a) and (b) of this section.
(e) License review standards. Applications to engage in activities
otherwise prohibited by this section will be denied if the activities
would make a material contribution to the design, development,
production, stockpiling, or use of chemical or biological weapons, or
of missiles.
Sec. 744.7 Restrictions on certain exports to and for the use of
certain foreign vessels or aircraft.
(a) General end-use prohibition. In addition to the license
requirements for items specified on the CCL, you may not export or
reexport an item subject to the EAR to, or for the use of, a foreign
vessel or aircraft, whether an operating vessel or aircraft or one
under construction, located in any port including a Canadian port,
unless a License Exception or NLR permits the shipment to be made:
(1) To the country in which the vessel or aircraft is located, and
(2) To the country in which the vessel or aircraft is registered,
or will be registered in the case of a vessel or aircraft under
construction, and
(3) To the country, including a national thereof, which is
currently controlling, leasing, or chartering the vessel or aircraft.
(b) Exception for U.S. and Canadian carriers.
(1) Notwithstanding the general end-use prohibition in paragraph
(a) of this section, export and reexport may be made of the commodities
described in paragraph (b)(3) of this section, for use by or on a
specific vessel or plane of U.S. or Canadian registry located at any
seaport or airport outside the United States or Canada except a port in
North Korea or Country Group D:1 (excluding the PRC and Romania), (see
Supplement No. 1 to part 740) provided that such commodities are <SUP>6
all of the following:
\6\ Where a license is required, see Secs. 748.2 and 748.4(g) of
the EAR.
---------------------------------------------------------------------------
(i) Ordered by the person in command or the owner or agent of the
vessel or plane to which they are consigned;
(ii) Intended to be used or consumed on board such vessel or plane
and necessary for its proper operation;
(iii) In usual and reasonable kinds and quantities during times of
extreme need, except that usual and reasonable quantities of ship's
bunkers or aviation fuel are considered to be only that quantity
necessary for a single onward voyage or flight; and
(iv) Shipped as cargo for which a Shipper's Export Declaration
(SED) is filed with the carrier, except that an SED is not required
when any of the commodities, other than fuel, is exported by U.S.
airlines to their own aircraft abroad for their use.
(2) Exports to U.S. or Canadian Airline's Installation or Agent.
Exports and reexports of the commodities described in paragraph (e) of
this section, except fuel, may be made to a U.S. or Canadian airline's
installation or agent in any foreign destination except North Korea or
Country Group D:1 (excluding the PRC and Romania), (see Supplement No.
1 to part 740) provided such commodities are all of the following:
(i) Ordered by a U.S. or Canadian airline and consigned to its own
installation or agent abroad;
(ii) Intended for maintenance, repair, or operation of aircraft
registered in either the United States or Canada, and necessary for the
aircraft's proper operation, except where such aircraft is located in,
or owned, operated or controlled by, or leased or chartered to, North
Korea or Country Group D:1 (excluding the PRC) (see Supplement No. 1 to
part 740) or a national of such country;
(iii) In usual and reasonable kinds and quantities; and
(iv) Shipped as cargo for which a Shipper's Export Declaration
(SED) is filed with the carrier, except that an
[[Page 12806]]
SED is not required when any of these commodities is exported by U.S.
airlines to their own installations and agents abroad for use in their
aircraft operations.
(3) Applicable commodities. This Sec. 744.7 applies to the
commodities listed subject to the provisions in paragraph (b) of this
section:
(i) Fuel, except crude petroleum and blends of unrefined crude
petroleum with petroleum products, which is of non-Naval Petroleum
Reserves origin or derivation (refer to short supply controls in part
754 of the EAR);
(ii) Deck, engine, and steward department stores, provisions, and
supplies for both port and voyage requirements, except crude petroleum,
provided that any commodities which are listed in Supplement No. 2 to
part 754 of the EAR are of non-Naval Petroleum Reserves origin or
derivation (refer to short supply controls in part 754 of the EAR);
(iii) Medical and surgical supplies;
(iv) Food stores;
(v) Slop chest articles;
(vi) Saloon stores or supplies; and
(vii) Equipment and spare parts.
Sec. 744.8 Restrictions on certain exports to all countries for Libyan
aircraft.
(a) General end-use prohibition for Libyan aircraft. In addition to
the license requirements for items specified on the CCL, you may not
export or reexport to any destination such parts and accessories
specified in paragraph (b) of this section if intended for use in the
manufacture, overhaul, or rehabilitation in any country of aircraft
that will be exported or reexported to Libya or Libyan nationals.
(b) Scope of products subject to end-use prohibition for Libyan
aircraft. The general end-use prohibition in paragraph (a) of this
section applies to items controlled by ECCNs 6A008, 6A108, 6A990,
7A001, 7A101, 7A002, 7A102, 7A003, 7A103, 7A004, 7A104, 7A006, 7A106,
7A115, 7A994, 9A001, 9A101, 9A003, 9A018.a, 9A991, and 9A994.
Supplement No. 1 to Part 744--Missile Technology Locations and Projects
------------------------------------------------------------------------
Location Projects
------------------------------------------------------------------------
Bahrain
Brazil.................................... Sonda III, Sonda IV, SS-300,
SS-1000, MB/EE Series
Missile, VLS Space Launch
Vehicle.
China..................................... M Series Missiles, CSS-2.
Egypt
India..................................... Agni, Prithvi, SLV-3
Satellite Launch.
Vehicle, Augmented Satellite
Launch.
Vehicle (ASLV), Polar
Satellite Launch.
Vehicle (PSLV),
Geostationary Satellite.
Launch Vehicle (GSLV).
Iran...................................... Surface-to-Surface Missile
Project, Scud Development
Project.
Iraq
Israel
Jordan
North Korea............................... No Dong I, Scud Development
Project.
Kuwait
Lebanon
Libya
Oman
Pakistan.................................. Haft Series Missiles.
Qatar
Saudi Arabia
South Africa.............................. Surface-to-Surface Missile
Project, Space Launch
Vehicle.
Syria
United Arab Emirates
Yemen
------------------------------------------------------------------------
Supplement No. 2 to Part 744--[Reserved]
Supplement No. 3 to Part 744--Countries Not Subject to Certain Nuclear
End-Use Restrictions in Sec. 744.2(a)
Australia
Belgium
Denmark
France
Germany
Greece
Iceland
Italy (includes San Marino and Holy See)
Japan
Luxembourg
Netherlands
New Zealand
Norway
Portugal
Spain
Turkey
United Kingdom
PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
Sec.
746.1 Introduction.
746.2 Cuba.
746.3 Iraq.
746.4 Libya.
746.5 North Korea.
746.6 Reserved.
746.7 Iran.
746.8 Rwanda.
Supplement No. 1 to Part 746--Special Sanctions on Angola Administered
by the Office of Foreign Assets Control
Supplement No. 2 to Part 746--United Nations Arms Embargoes
Administered by the Department of State: Liberia, Somalia and Countries
of the Former Yugoslavia (Bosnia-Herzegovina, Croatia, Former Yugoslav
Republic of Macedonia, Serbia and Montenegro, Slovenia)
Supplement No. 3 to Part 746--Controls on the Federal Republic of
Yugoslavia (Serbia and Montenegro), Bosnia-Herzegovina, Croatia
Administered by the Office of Foreign Assets Control
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 287c; 22 U.S.C. 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994
Comp., p. 899; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917;
Notice of August 15, 1995 (60 FR 42767, August 17, 1995).
Sec. 746.1 Introduction.
In this part, references to the EAR are references to 15 CFR
chapter VII, subchapter C. This part implements broad based controls
for items and activities subject to the EAR imposed to implement or
U.S. government policies. Two categories of controls are included in
this part.
(a) Comprehensive controls. This part contains or refers to all the
BXA licensing requirements, licensing policies, and License Exceptions
for countries subject to general embargoes, currently Cuba, Libya,
North Korea, Iran and Iraq. This part is the focal point for all the
EAR requirements for transactions involving these countries.
(1) Cuba, Libya, North Korea. All the items on the Commerce Control
List (CCL) require a license to Cuba, Libya, or North Korea. In
addition, most other items subject to the EAR, but not included on the
CCL, designated by the Number ``EAR99'', require a license to Cuba,
Libya, and North Korea. Most items requiring a license to these
destinations are subject to a general policy of denial. Because these
controls extend to virtually all exports, they do not appear in the
Country Chart in part 738 of the EAR, nor are they reflected in the
Commerce Control List in part 774 of the EAR.
(2) Iran and Iraq. While BXA maintains controls on exports and
reexports to Iran and Iraq, comprehensive embargoes on transactions
involving these countries are administered by the Department of the
Treasury's Office of Foreign Assets Control (OFAC).
(b) Rwanda. The second category of EAR controls apply to Rwanda
included in this part are those that are supplemental to controls set
forth in the Country Chart in part 738. Such controls
[[Page 12807]]
are listed under each affected ECCN on the CCL in part 774 of the EAR.
(c) This part also contains descriptions of controls maintained by
the Office of Foreign Assets Control in the Treasury Department and by
Office of Defense Trade Controls in the Department of State.
Comprehensive embargoes and supplemental controls implemented by BXA
under the EAR usually also involve controls on items and activities
maintained by these agencies. This part sets forth the allocation of
licensing responsibilities between BXA and these other agencies.
References to the requirements of other agencies are informational; for
current, complete, and authoritative requirements, you should consult
the appropriate agency's regulations.
(d) Supplement No. 1 to this part provides you with general
information on United Nations sanctions administered by the Department
of the Treasury's Office of Foreign Assets Control (OFAC) (31 CFR part
590) on UNITA in Angola.
(e) Supplement No. 2 to this part provides you with general
information on United Nations arms embargoes administered by the
Department of State (22 CFR parts 120 through 130) on all the countries
of the former Yugoslavia (Bosnia-Herzegovina, Croatia, the Former
Yugoslav Republic of Macedonia, Serbia, Montenegro, and Slovenia),
Liberia and Somalia.
(f) Supplement No. 3 to this part provides you with information on
embargoes on the Federal Republic of Yugoslavia (Serbia and Montenegro)
and certain areas of Croatia and Bosnia-Herzegovina administered by
OFAC (31 CFR part 585).
Sec. 746.2 Cuba.
(a) License requirements. As authorized by section 6 of the Export
Administration Act of 1979, as amended (EAA) and by the Trading with
the Enemy Act of 1917, as amended, you will need a license to export or
reexport all items subject to the EAR (see part 734 of the EAR for the
scope of items subject to the EAR) to Cuba, except as follows.
(1) License Exceptions. You may export without a license if your
transaction meets all the applicable terms and conditions of any of the
following License Exceptions. To determine the scope and eligibility
requirements, you will need to turn to the sections or specific
paragraphs of part 740 of the EAR (License Exceptions). Read each
License Exception carefully, as the provisions available for embargoed
countries are generally narrow.
(i) Temporary Exports (TEMP) by the news media (see
Sec. 740.4(a)(2)(viii) of the EAR).
(ii) Operating Technology and Software (OTS) for legally exported
commodities (see Sec. 740.8(a) of the EAR).
(iii) Sales Technology (STS) (see Sec. 740.8(b) of the EAR).
(iv) Software Updates (SUD) for legally exported software (see
Sec. 740.8(c) of the EAR).
(v) Parts (PTS) for one-for-one replacement in certain legally
exported commodities (see Sec. 740.5(a) of the EAR).
(vi) Baggage (BAG) (see Sec. 740.9 of the EAR).
(vii) Governments and international organizations (GOV) (see
Sec. 740.6 of the EAR).
(viii) Gift parcels and humanitarian donations (GFT) (see
Sec. 740.7 of the EAR).
(ix) Items in transit (TUS) from Canada through the U.S. (see
Sec. 740.4(b)(1)(iv) of the EAR).
(x) Aircraft and Vessels (AVS) for certain aircraft on temporary
sojourn (see Sec. 740.10(a) of the EAR).
(2) [Reserved.]
(b) Licensing policy. Items requiring a license are subject to a
general policy of denial, except as follows:
(1) Medicines, medical supplies, instruments and equipment.
Applications to export medicines, medical supplies, instruments and
equipment will generally be approved, except:
(i) To the extent restrictions would be permitted under section
5(m) of the Export Administration Act of 1979, as amended (EAA), or
section 203(b)(2) of the International Emergency Economic Powers Act;
(ii) If there is a reasonable likelihood that the item to be
exported will be used for purposes of torture or other human rights
abuses;
(iii) If there is a reasonable likelihood that the item to be
exported will be reexported;
(iv) If the item to be exported could be used in the production of
any biotechnological product; or
(v) If it is determined that the United States government is unable
to verify, by on-site inspection or other means, that the item to be
exported will be used for the purpose for which it was intended and
only for the use and benefit of the Cuban people, but this exception
shall not apply to donations of medicines for humanitarian purposes to
a nongovernmental organization in Cuba.
(2) Telecommunications commodities may be authorized on a case-by-
case basis, provided the commodities are part of an FCC-approved
project and are necessary to provide efficient and adequate
telecommunications services between the United States and Cuba.
(3) Exports from third countries to Cuba of non-strategic foreign-
made products that contain an insubstantial proportion of U.S.-origin
materials, parts, or components will generally be considered favorably
on a case-by-case basis, provided all of the following conditions are
satisfied:
(i) The local law requires, or policy favors, trade with Cuba;
(ii) The U.S.-origin content does not exceed 20 percent of the
value of the product to be exported from the third country. Requests
where the U.S.-origin parts, components, or materials represent more
than 20 percent by value of the foreign-made product will generally be
denied. See Supplement No. 3 to part 734 of the EAR for instructions on
how to calculate value; and
(iii) You are not a U.S.-owned or -controlled entity in a third
country as defined by OFAC regulations, 31 CFR part 515, or you are a
U.S.-owned or controlled entity in a third country and one or more of
the following situations applies:
(A) You have a contract for the proposed export that was entered
into prior to October 23, 1992.
(B) Your transaction involves the export of foreign-produced
medicine, or medical supplies, instruments, or equipment incorporating
U.S.-origin parts, components or materials, in which case the
application will be reviewed according to the provisions of paragraph
(b)(1) of this section.
(C) Your transaction is for the export of foreign-produced
telecommunications commodities incorporating U.S.-origin parts,
components and materials, in which case the application will be
reviewed under the licensing policy set forth in paragraph (b)(2) of
this section.
(D) Your transaction is for the export of donated food to
individuals or non-governmental organizations in Cuba and does not
qualify for the humanitarian License Exception.
(c) Cuba has been designated by the Secretary of State as a country
whose government has repeatedly provided support for acts of
international terrorism. For anti-terrorism controls, see Supplement 2
to part 742 of the EAR.
(d) Related controls. OFAC maintains controls on the activities of
persons subject to U.S. jurisdiction, wherever located, involving
transactions with Cuba or any specially designated Cuban national, as
provided in 31 CFR part 515.
[[Page 12808]]
Sec. 746.3 Iraq.
(a) License requirements. OFAC administers an embargo against Iraq
under the authority of the International Emergency Economic Powers Act
of 1977, as amended, and the United Nations Participation Act of 1945,
as amended, and in conformance with United Nations Security Council
Resolutions. The applicable OFAC regulations, the Iraqi Sanctions
Regulations, are found in 31 CFR part 575. You should consult with OFAC
for authorization to export or reexport items subject to U.S.
jurisdiction to Iraq, or to any entity owned or controlled by, or
specially designated as acting for or on behalf of, the Government of
Iraq. Under the EAR, you need a license to export or reexport to Iraq
any item on the CCL containing a CB Column 1, CB Column 2, CB Column 3,
NP Column 1, NP Column 2, NS Column 1, NS Column 2, MT Column 1, RS
Column 1, RS Column 2, CC Column 1, CC Column 2, CC Column 3 in the
Country Chart Column of the License Requirements section of an ECCN, or
classified under ECCNs 1C980, 1C981, 1C982, 1C983, 1C984, 5A980, 0A980,
and 0A983; however, to avoid duplication, an authorization from OFAC
constitutes authorization under the EAR, and no separate BXA
authorization is necessary. Except as noted in Sec. 746.3(a)(1) of this
part, you may not use any BXA License Exception or other BXA
authorization to export or reexport to Iraq.
(1) License Exceptions. You may export or reexport without a
license if your transaction meets all the applicable terms and
conditions of one of the following License Exceptions. Read each
License Exception carefully, as the provisions available for embargoed
countries are generally narrow.
(i) Baggage (BAG) (See Sec. 740.9 of the EAR).
(ii) Governments and international organizations (GOV) (See
Sec. 740.6 of the EAR).
(2) Exports for the official use of the United Nations, its
personnel or agencies (excluding its relief or developmental agencies).
You must consult with OFAC to determine what transactions are eligible.
(b) Iraq has been designated by the Secretary of State as a country
that has repeatedly provided support for acts of international
terrorism. For anti-terrorism controls, see Supplement 2 to part 742 of
the EAR.
(c) Related controls. OFAC maintains controls on the activities of
U.S. persons, wherever located, involving transactions with Iraq or any
specially designated Iraqi national, as provided in 31 CFR part 575.
Sec. 746.4 Libya.
(a) Introduction. The Department of the Treasury and the Department
of Commerce maintain comprehensive controls on exports and reexports to
Libya. OFAC maintains comprehensive controls on exports and
transshipments to Libya under the Libyan Sanctions Regulations (31 CFR
part 550). To avoid duplicate licensing procedures, OFAC and BXA have
allocated licensing responsibility as follows: OFAC licenses direct
exports and transshipments to Libya; BXA licenses reexports, exports of
foreign-manufactured items containing U.S.-origin parts, components or
materials, and exports of foreign-produced direct product of U.S.
technology or software. Issuance of an OFAC license also constitutes
authorization under the EAR, and no license from BXA is necessary.
Exports and reexports subject to the EAR that are not subject to the
Libyan Sanctions Regulations continue to require authorization from
BXA.
(b) License requirements--(1) Exports. OFAC and BXA both require a
license for virtually all exports (including transshipments) to Libya.
Except as noted in paragraph (b) of this section or specified in OFAC
regulation, you may not use any BXA License Exception or other BXA
authorization to export or transship to Libya. You will need a license
from OFAC for all direct exports and transshipments to Libya except
those eligible for the following BXA License Exceptions:
(i) Baggage (BAG) (see Sec. 740.9 of the EAR).
(ii) Governments and international organizations (GOV) (see
Sec. 740.6 of the EAR).
(iii) Gift parcels (GIFT) (see Sec. 740.7(a) of the EAR).
(2) Reexports. You will need a license from BXA to reexport any
U.S.-origin item from a third country to Libya, any foreign-
manufactured item containing U.S.-origin parts, components or
materials, as defined in Sec. 734.2(b)(2) of the EAR, or any national
security-controlled foreign-produced direct product of U.S. technology
or software, as defined in Sec. 734.2(b)(3) of the EAR, exported from
the U.S. after March 12, 1982. You will need a license from BXA to
reexport all items subject to the EAR (see part 734 of the EAR) to
Libya, except:
(i) Food, medicines, medical supplies, and agricultural
commodities;
(ii) Reexports eligible for the following License Exceptions (read
each License Exception carefully, as the provisions available for
embargoed countries are generally narrow):
(A) Temporary Exports (TEMP) reexports by the news media (see
Sec. 740.4(a)(2)(viii) of the EAR).
(B) Operating Technology and Software (OTS) for legally exported
commodities (see Sec. 740.8(a) of the EAR).
(C) Sales Technology (STS) (see Sec. 740.8(b) of the EAR).
(D) Software Updates (SUD) for legally exported software (see
Sec. 740.8(c) of the EAR).
(E) Parts (PTS) for one-for-one replacement in certain legally
exported commodities (Sec. 740.5(a) of the EAR).
(F) Baggage (BAG) (Sec. 740.9 of the EAR).
(G) Aircraft and Vessels (AVS) for vessels only (see
Sec. 740.10(c)(1) of the EAR).
(H) Governments and international organizations (GOV) (see
Sec. 740.6 of the EAR).
(I) Gift parcels and humanitarian donations (GFT) (see Sec. 740.7
of the EAR).
(3) License applications submitted to BXA must provide specific
answers to the following questions:
(i) How was the product received at its current location, and under
what type of authorization;
(ii) On what date was it received; and
(iii) How are inventories maintained at the current site?
(c) Licensing policy. (1) You should consult with OFAC regarding
licensing policy for transactions subject to OFAC regulation.
(2) The licensing policy for BXA controls is as follows. Licenses
will generally be denied for:
(i) Items controlled for national security purposes and related
technology and software, including controlled foreign produced products
of U.S. technology and software exported from the United States after
March 12, 1982; and
(ii) Oil and gas equipment and technology and software, if listed
in paragraph (c)(2)(vii) of this section, or if determined by BXA not
to be readily available from sources outside the United States; and
(iii) Commodities, software, and technology destined for the
petrochemical processing complex at Ras Lanuf, if listed in paragraph
(c)(2)(vii) of this section, or where such items would contribute
directly to the development or construction of that complex (items
destined for the township at Ras Lanuf, or for the public utilities or
harbor facilities associated with that township, generally will not be
regarded as making such a contribution where their functions will
[[Page 12809]]
be primarily related to the township, utilities or harbor);
(iv) Aircraft (including helicopters) or aircraft parts,
components, or accessories to Libya or the provision of engineering and
maintenance servicing of Libyan aircraft or aircraft components;
(v) Arms and related material of all types, including the sale or
transfer of weapons and ammunition, military vehicles and equipment,
paramilitary police equipment, spare parts for the aforementioned, and
equipment or supplies for the manufacture or maintenance of the
aforementioned.
(vi) Materials destined for the construction, improvement or
maintenance of Libyan civilian or military airfields and associated
facilities and equipment or any engineering or other services or
components destined for the maintenance of any Libyan civil or military
airfields or associated facilities and equipment, except emergency
equipment and equipment and services directly related to civilian air
traffic control; and
(vii) Items listed in paragraphs (c)(2)(vii) (A) through (E) and
equipment and supplies for the manufacture or maintenance of such
items:
(A) Pumps of medium or large capacity (equal to or larger than 3500
cubic meters per hour) and drivers (gas turbines and electric motors)
designed for use in the transportation of crude oil and natural gas.
(B) Equipment designed for use in crude oil export terminals, as
follows:
(1) Loading buoys or single point moorings;
(2) Flexible hoses for connection between underwater manifolds
(plem) and single point mooring and floating loading hoses of large
sizes (from 12-16 inches); or
(3) Anchor chains.
(C) Equipment not specially designed for use in crude oil export
terminals, but which because of its large capacity can be used for this
purpose, as follows:
(1) Loading pumps of large capacity (4000 m \3\/h) and small head
(10 bars);
(2) Boosting pumps within the same range of flow rates;
(3) Inline pipe line inspection tools and cleaning devices (i.e.,
pigging tools) (16 inches and above); or
(4) Metering equipment of large capacity (1000 m \3\/h and above).
(D) Refinery equipment, as follows:
(1) Boilers meeting American Society of Mechanical Engineers 1
standards;
(2) Furnaces meeting American Society of Mechanical Engineers 8
standards;
(3) Fractionation columns meeting American Society of Mechanical
Engineers 8 standards;
(4) Pumps meeting American Petroleum Institute 610 standards;
(5) Catalytic reactors meeting American Society of Mechanical
Engineers 8 standards; or
(6) Prepared catalysts, including catalysts containing platinum and
catalysts containing molybdenum.
(E) Spare parts for any of the items described in paragraph
(c)(2)(vii) of this section.
(3) Notwithstanding the presumptions of denial in paragraphs (c)(2)
(i) through (iii), licenses will generally be issued items not included
in paragraph (c)(2)(iv) through (vii) when the transaction involves:
(i) The export or reexport of commodities or technology and
software under a contract in effect prior to March 12, 1982, where
failure to obtain a license would not excuse performance under the
contract;
(ii) Reexport of items not controlled for national security
purposes that had been exported from the United States prior to March
12, 1982 or exports of foreign products incorporating such items as
components; or
(iii) Incorporation of U.S.-origin parts, components, or materials
in foreign-manufactured products destined for Libya, where the U.S.
content is 20 percent or less by value.
(4) Notwithstanding the presumption of denial in paragraph (c)(2)
(iv) through (vii), applications for reexports under a contract pre-
dating January 18, 1994, will be reviewed under the licensing policy in
effect prior to that date.
(5) Licenses will generally be considered favorably on a case-by-
case basis when the transaction involves the following items, provided
such items are not included in paragraph (c)(2) (iv) through (vii):
(i) Reexports of items subject to national security controls that
were exported prior to March 12, 1982 and exports of foreign products
incorporating such U.S.-origin components, where the particular
authorization would not be contrary to specific foreign policy
objectives of the United States; or
(ii) Items destined for use in the development or construction of
the petrochemical processing complex at Ras Lanuf, where the
transaction could be approved but for the general policy of denial set
out in paragraph (c)(2)(iii), and where either:
(A) The transaction involves a contract in effect before December
20, 1983 that requires export or reexport of the items in question; or
(B) The items had been exported from the U.S. before that date.
(iii) Other unusual situations such as transactions involving firms
with contractual commitments in effect before March 12, 1982.
(6) Licenses will generally be considered favorably on a case-by-
case basis for the reexport of reasonable quantities for civil use of
off-highway wheel tractors of carriage capacity of 9t (10 tons) or
more, as defined in ECCN 9A992, provided such tractors are not for uses
described in paragraph (c)(2) (iv) through (vi) of this section.
(7) All other reexports not covered by United Nations resolutions
will generally be approved, subject to any other licensing policies
applicable to a particular transaction.
(e) Libya has been designated by the Secretary of State as a
country whose government has repeatedly provided support for acts of
international terrorism. For anti-terrorism controls, see Supplement 2
to part 742 of the EAR.
(f) Related controls. OFAC administers broad economic sanctions on
Libya, and restricts participation by U.S. persons in transactions with
Libya or specially designated Libyan nationals. The applicable OFAC
regulations, the Libyan Sanctions Regulations, are found in 31 CFR part
550.
Sec. 746.5 North Korea.
(a) License requirements. As authorized by section 6 of the Export
Administration Act of 1979, as amended (EAA) and by the Trading with
the Enemy Act of 1917, as amended, you will need a license to export or
reexport items subject to the EAR (see part 734 of the EAR) to North
Korea, except as follows:
(1) License Exceptions. You may export without a license if your
transaction meets all the applicable terms and conditions of any of the
License Exceptions specified in this paragraph. To determine scope and
eligibility requirements, you will need to turn to the sections or
specific paragraphs of part 740 of the EAR (License Exceptions). Read
each License Exception carefully, as the provisions available for
embargoed countries are generally narrow.
(i) Temporary Exports (TEMP) by the news media (see
Sec. 740.4(a)(2)(viii) of the EAR).
(ii) Operating Technology and Software (OTS) for legally exported
commodities (see Sec. 740.8(a) of the EAR).
(iii) Sales Technology (STS) (see Sec. 740.8(b) of the EAR).
[[Page 12810]]
(iv) Software Updates (SUD) for legally exported software (see
Sec. 740.8(c) of the EAR).
(v) Parts (PTS) for one-for-one replacement in certain legally
exported commodities (Sec. 740.5(a) of the EAR).
(vi) Baggage (BAG) (Sec. 740.9 of the EAR).
(vii) Aircraft and Vessels (AVS) for fishing vessels under
governing international fishery agreements and foreign-registered
aircraft on temporary sojourn in the U.S.<SUP>1 (see Sec. 740.10 (a)
and (c)(1) of the EAR).
\1\ Export of U.S. aircraft on temporary sojourn or vessels is
prohibited, 44 CFR Ch. IV, Part 403 ``Shipping restrictions: North
Korea (T-2).''
---------------------------------------------------------------------------
(viii) Governments and international organizations (GOV) (see
Sec. 740.15 of the EAR).
(ix) Gift parcels and humanitarian donations (GFT) (see Sec. 740.7
of the EAR).
(2) [Reserved]
(b) Licensing policy. Items requiring a license are subject to a
general policy of denial. Exceptions to the policy of denial are as
follows:
(1) BXA will review on a case-by-case basis applications for export
of donated human-needs items listed in Supplement No. 2 to Part 740 of
the EAR that do not qualify for the License Exception NEED (see
Sec. 740.7(b) of the EAR). Such applications include single
transactions involving exports to meet emergency needs.
(2) BXA will review on a case-by-case basis applications for
commercial sales of human-needs items. Such applications must be for
items listed in Supplement No. 2 to part 740 of the EAR, but are not
limited solely to small scale projects at the local level.
(c) North Korea has been designated by the Secretary of State as a
country whose government has repeatedly provided support for acts of
international terrorism. For anti-terrorism controls, see Supplement 2
to part 742 of the EAR.
(d) Related controls. OFAC maintains controls on the activities of
persons subject to U.S. jurisdiction, wherever located, involving
transactions with North Korea or any specially designated North Korean
national.
Sec. 746.6 [Reserved]
Sec. 746.7 Iran.
The Treasury Department's Office of Foreign Assets Control (OFAC)
administers a comprehensive trade and investment embargo against Iran
under the authority of the International Emergency Economic Powers Act
of 1977, as amended, section 505 of the International Security and
Development Cooperation Act of 1985, and Executive Orders 12957 and
12959 of March 15, 1995 and May 6, 1995, respectively. This embargo
includes prohibitions on export and certain reexport transactions
involving Iran, including transactions dealing with items subject to
the EAR. (See OFAC's Iranian Transactions Regulations, 31 CFR part
560.) BXA continues to maintain licensing requirements on exports and
reexports to Iran under the EAR as described in paragraph (a)(2) of
this section. No person may export or reexport items subject to both
the EAR and OFAC's Iranian Transactions Regulations without prior OFAC
authorization.
(a) License requirements.
(1) OFAC administered embargo. You should consult with OFAC if:
(i) You seek authorization to export from the United States; or
(ii) You are a United States person (as defined in OFAC's Iranian
Transactions Regulations, 31 CFR part 560) and seek authorization to
export or reexport from a third country; or
(iii) You seek authorization to reexport U.S.-origin items that
were subject to any export license application requirements prior to
Executive Order 12959 of May 6, 1995.
(2) BXA license requirements. A license is required under the EAR:
(i) To export to Iran any item on the CCL containing a CB Column 1,
CB Column 2, CB Column 3, NP Column 1, NP Column 2, NS Column 1, NS
Column 2, MT Column 1, RS Column 1, RS Column 2, CC Column 1, CC Column
2, CC Column 3, AT Column 1 or AT Column 2 in the Country Chart Column
of the License Requirements section of an ECCN, or classified under
ECCNs 1C980, 1C981, 1C982, 1C983, 1C984, 5A980, 0A980, and 0A983; or
(ii) To reexport to Iran any of the items identified in
Sec. 746.7(a)(2)(i), except for ECCNs 2A994, 3A993, 5A992, 5A995,
6A990, 6A994, 7A994, 8A992, 8A994, 9A990, 9A992, or 9A994. However, the
export of these items from the United States to any destination with
knowledge that they will be reexported, in whole or in part, to Iran,
is prohibited without a license; or
(iii) To export or reexport items subject to the general
prohibitions, including proliferation end-use prohibitions (see part
736 of the EAR).
(3) BXA authorization. To avoid duplication, exporters or
reexporters are not required to seek separate authorization from BXA
for an export or reexport subject both to the EAR and to OFAC's Iranian
Transactions Regulations. Therefore, if OFAC authorizes an export or
reexport, no separate authorization from BXA is necessary.
(4) Definitions. For purposes of this section, the term ``United
States person'' means any United States citizen, permanent resident
alien, entity organized under the laws of the United States (including
foreign branches), or any person in the United States; the term
``foreign person'' means those not defined as United States persons.
(b) Iran has been designated by the Secretary of State as a country
that has repeatedly provided support for acts of international
terrorism. For anti-terrorism controls, see Sec. 742.8 of the EAR and
Supplement 2 to part 742.
Sec. 746.8 Rwanda.
(a) Introduction. In addition to the controls on Rwanda reflected
on the Country Chart in Supplement 1 to part 738 of the EAR, there are
special controls on items that fall within the scope of a United
Nations Security Council arms embargo.
(b) License requirements. (1) Under Executive Order 12918 of May
26, 1994, and in conformity with United Nations Security Council (UNSC)
Resolution 918 of May 17, 1994, an embargo applies to the sale or
supply to Rwanda of arms and related materiel of all types and
regardless of origin, including weapons and ammunition, military
vehicles and equipment, paramilitary police equipment, and spare parts
for such items. You will therefore need a license for the sale, supply
or export to Rwanda of embargoed items, as listed in paragraph
(b)(1)(i) and (ii) of this section, from the territory of the United
States by any person. You will also need a license for the export,
reexport, sale or supply to Rwanda of such items by any United States
person in any foreign country or other location. (Reexport controls
imposed by this embargo apply only to reexports by U.S. persons.) You
will also need a license for the use of any U.S.-registered aircraft or
vessel to supply or transport to Rwanda any such items. These
requirements apply to embargoed items, regardless of origin.
(i) Crime Control and Detection Equipment as identified on the CCL
under CC Columns No. 1, 2 or 3 in the Country Chart column of the
``License Requirements'' section of the applicable ECCN.
(ii) Items described by any ECCN ending in ``18,'' and items
described by ECCNs 1A988, 2B985, 5A980, 6A002.a.1,a.2,a.3 and c,
6A003.b.3 and b.4, 6D102, 6E001, 6E002, 9A115, 9A991.a, 09A84, 0A986,
and 0A988.
(2) This embargo became effective at 11:59 p.m. EDT on May 26,
1994.
[[Page 12811]]
(3) Definitions. For the purposes of this section, the term:
(i) Person means a natural person as well as a corporation,
business association, partnership, society, trust, or any other entity,
organization or group, including governmental entities; and
(ii) United States person means any citizen or national of the
United States, any lawful permanent resident of the United States, or
any corporation, business association, partnership, society, trust, or
any other entity, organization or group, including governmental
entities, organized under the laws of the United States (including
foreign branches).
(c) Licensing policy. Applications for export or reexport of all
items listed in paragraphs (b)(1)(i) and (ii) of this section are
subject to a general policy of denial. Consistent with United Nations
Security Council Resolution 918 and the United Nations Participation
Act, this embargo is effective notwithstanding the existence of any
rights or obligations conferred or imposed by any international
agreement or any contract entered into or any license or permit granted
prior to that date, except to the extent provided in regulations,
orders, directives or licenses that may be issued in the future under
Executive Order 12918 or under the EAR.
(d) Related controls. The Department of State, Office of Defense
Trade Controls, maintains controls on arms and military equipment under
the International Traffic in Arms Regulations (22 CFR parts 120 through
130).
Supplement 1 to Part 746--Special Sanctions on Angola Administered by
the Office of Foreign Assets Control
(a) Angola. BXA maintains controls on Angola as reflected on the
Country Chart in Supplement 1 to part 738 of the EAR. (See also
Sec. 746.7 of this part.) In addition, OFAC administers sanctions
against the National Union for the Total Independence of Angola
(UNITA). Under Executive Order 12865 of September 26, 1993, and
consistent with United Nations Security Council Resolution 864 of
September 15, 1993, OFAC administers an embargo on the sale or
supply of arms and related materiel of all types, including weapons
and ammunition, military vehicles and equipment and spare parts, and
petroleum and petroleum products to:
(1) UNITA; or
(2) The territory of Angola, other than through points of entry
designated by the Secretary of the Treasury, in the following
schedule:
(i) Airports:
(A) Luanda; or
(B) Katumbela, Benguela Province.
(ii) Ports:
(A) Luanda;
(B) Lobito, Benguela Province; or
(C) Namibe, Namibe Province.
(iii) Entry Points:
(A) Malongo, Cabinda.
(B) Reserved.
(b) Exporters should apply to OFAC for authorization to export
embargoed items to UNITA or to points of entry not designated by the
Secretary of the Treasury. Exports of embargoed items that are also
controlled on the CCL to end-users other than UNITA and to points of
entry designated by the Secretary of the Treasury continue to
require a license from BXA. In addition, all other items controlled
on the CCL to Angola continue to require a license from BXA.
Supplement 2 to Part 746--United Nations Arms Embargoes Administered by
the Department of State: Liberia, Somalia, and Countries of the Former
Yugoslavia (Bosnia-Herzegovina, Croatia, Former Yugoslav Republic of
Macedonia, Serbia and Montenegro, Slovenia)
(a) Former Socialist Federal Republic of Yugoslavia (Bosnia-
Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia,
Serbia and Montenegro, and Slovenia). The Department of State
administers an embargo on all weapons and military equipment,
consistent with United Nations Security Council Resolution 713 of
September 25, 1991, to the countries of the former Socialist Federal
Republic of Yugoslavia (Bosnia-Herzegovina, Croatia, the Former
Yugoslav Republic of Macedonia, Serbia and Montenegro, and
Slovenia). Exporters are advised to consult with the Department of
State, Office of Defense Trade Controls (22 CFR parts 120 through
130), regarding exports of weapons and military equipment to these
destinations.
(b) Liberia. The Department of State administers an embargo on
all weapons and military equipment to Liberia, consistent with
United Nations Security Council Resolution 788 of November 19, 1992.
Exporters are advised to consult with the Department of State,
Office of Defense Trade Controls (22 CFR parts 120 through 130),
regarding exports of weapons and military equipment.
(c) Somalia. The Department of State administers an embargo on
all weapons and military equipment to Somalia, consistent with
United Nations Security Council Resolution 733 of February 23, 1992.
Exporters are advised to consult with the Department of State,
Office of Defense Trade Controls (22 CFR parts 120 through 130),
regarding exports of weapons and military equipment.
Supplement No. 3 to Part 746--Controls on the Federal Republic of
Yugoslavia (Serbia and Montenegro), Bosnia-Herzegovina, Croatia
Administered by the Office of Foreign Assets Control
Note: OFAC administers a comprehensive embargo on the Federal
Republic of Yugoslavia (Serbia and Montenegro), certain areas of
Croatia, and Bosnian Serb-controlled areas of the Republic of
Bosnia-Herzegovina. Effective January 16, 1996, OFAC suspended the
application of sanctions on Croatia and Serbia and Montenegro.
Therefore, exporters should consult the Country Chart in Supplement
No. 1 to part 738 of the EAR for BXA controls. OFAC controls on
Bosnian Serb-controlled area of Bosnia-Herzegovina remain in effect.
(See amendment to the Federal Republic of Yugoslavia (Serbia and
Montenegro) and Bosnian Serb-Controlled Areas of the Republic of
Bosnia and Herzegovina Sanctions Regulations in the Federal Register
of January 19, 1996 (61 FR 1282) (31 CFR part 585).) This suspension
affects paragraphs (a) and (c) of this Supplement.
(a) Federal Republic of Yugoslavia (Serbia & Montenegro). OFAC
administers an embargo on exports and reexports to the Federal
Republic of Yugoslavia (Serbia and Montenegro) (FRY(S & M)). OFAC
administers this embargo under Executive Orders 12808 of May 30,
1992, 12810 of June 5, 1992, 12831 of January 15, 1993, 12846 of
April 25, 1993, and 12934 of October 25, 1994, and consistent with
United Nations Security Council Resolutions 757 of May 30, 1992, 787
of November 16, 1992, 820 of April 17, 1993, and 942 of September
23, 1994. Under this embargo, no items subject to U.S. jurisdiction
may be exported, directly or indirectly, to the FRY (S & M), or to
any entity operated from the FRY (S & M), or owned or controlled by,
or specially designated as acting for or on behalf of the Government
of the FRY (S & M). The applicable OFAC regulations, the Federal
Republic of Yugoslavia (Serbia and Montenegro) Sanctions
Regulations, are found in 31 CFR part 585. Exporters should apply to
OFAC for authorization to export or reexport items subject to the
EAR to the FRY (S & M). An authorization from OFAC constitutes
authorization under the EAR, and no BXA license is necessary.
(b) Bosnia-Herzegovina. (1) BXA maintains the controls reflected
on the Country Chart in Supplement 1 to part 738 of the EAR on
Bosnia-Herzegovina, except to the extent OFAC maintains controls on
exports or reexports to that country.
(2) OFAC maintains a comprehensive embargo on trade, including
exports from the United States or by U.S. persons to, or through,
those areas of the Republic of Bosnia-Herzegovina under the control
of the Bosnian Serb forces, or activity of any kind that promotes or
is intended to promote such dealing. OFAC maintains this embargo
under Executive Orders 12846 of April 25, 1993 and 12934 of October
25, 1994, and consistent with United Nations Security Council
Resolutions 820 of April 17, 1993 and 942 of September 23, 1994. The
applicable OFAC regulations, the Federal Republic of Yugoslavia
(Serbia and Montenegro) Sanctions Regulations, are found in 31 CFR
part 585. U.S. persons should apply to OFAC for authorization to
engage in trade-related transactions involving those areas of the
Republic of Bosnia-Herzegovina under the control of the Bosnian Serb
forces. An authorization from OFAC constitutes authorization under
the EAR, and no BXA license is necessary. You will need a license
from BXA for items controlled on the CCL to
[[Page 12812]]
Bosnia-Herzegovina when the export or reexport is destined to areas
in the Republic of Bosnia-Herzegovina not controlled by the Bosnian
Serb forces. You may need a license from BXA to reexport U.S.-origin
items from third countries to areas of the Republic of Bosnia-
Herzegovina under the control of the Bosnian Serb forces.
(c) Croatia. (1) BXA maintains the controls reflected on the
Country Chart in Supplement 1 to part 738 of the EAR on Croatia,
except to the extent OFAC maintains controls on exports or reexports
to that country.
(2) OFAC prohibits any dealing by a U.S. person relating to the
export to, or transshipment through, the United Nations Protected
Areas in the Republic of Croatia. OFAC maintains this embargo under
Executive Order 12846 of April 25, 1993, and consistent with United
Nations Security Council Resolution 820 of April 17, 1993. The
applicable OFAC regulations, the Federal Republic of Yugoslavia
(Serbia and Montenegro) Sanctions Regulations, are found in 31 CFR
part 585. U.S. persons should apply to OFAC for authorization to
engage in trade-related transactions involving the United Nations
Protected Areas in the Republic of Croatia. An authorization from
OFAC constitutes authorization under the EAR, and no BXA license is
necessary. You will need a license from BXA for items controlled on
the CCL to Croatia when the export or reexport is destined to areas
other than the United Nations Protected Areas in the Republic of
Croatia. Foreign persons may need a license from BXA to reexport
U.S.-origin items from third countries to the United Nations
Protected Areas in the Republic of Croatia.
PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND
DOCUMENTATION
Sec.
748.1 General provisions.
748.2 Obtaining forms; mailing addresses.
748.3 Classification and Advisory Opinions.
748.4 Basic guidance related to applying for a license.
748.5 Parties to the transaction on a license application.
748.6 General instructions for license applications.
748.7 Applying electronically for a license or Classification
request.
748.8 Unique license application requirements.
748.9 Support documents for license applications.
748.10 Import and End-User Certificates.
748.11 Statement by Ultimate Consignee and Purchaser.
748.12 Special provisions for support documents.
748.13 Delivery Verification.
Supplement No. 1 to Part 748--BXA-748P, BXA-748P-A; Item Appendix, and
BXA-748P-B; End-User Appendix, Multipurpose Applicaiton Instructions
Supplement No. 2 to Part 748--Unique License Application Requirements
Supplement No. 3 to part 748--BXA-711, Statement by Ultimate Consignee
and Purchaser Instructions
Supplement No. 4 to Part 748--Authorities Administering Import
Certificate/Delivery Verification (IC/DV) and End Use Certificate
Systems in Foreign Countries
Supplement No. 5 to Part 748--U.S. Import Certificate and Delivery
Verification Procedure
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60
FR 42767, August 17, 1995).
Sec. 748.1 General provisions.
(a) Scope. In this part, references to the EAR are references to 15
CFR chapter VII, subchapter C. The provisions of this part involve
applications, whether submitted in writing or electronically, for
classifications, advisory opinions or licenses subject to the Export
Administration Regulations (EAR). All terms, conditions, provisions,
and instructions, including the applicant and consignee certifications,
contained in such form(s) are incorporated as part of the EAR. For the
purposes of this part, the term ``application'' refers to the Form BXA-
748P: Multipurpose Application or its electronic equivalent. If a
provision contained in this part relates solely to a license
application the term ``license application'' will appear.
(b) BXA responses. BXA will give a formal classification, advisory
opinion or licensing decision only through the review of a properly
completed application supported by all relevant facts and required
documentation submitted in writing or electronically to BXA.
(c) Confidentiality. Consistent with section 12(c) of the Export
Administration Act, as amended, information obtained for the purposes
of considering license applications, and other information obtained by
the U.S. Department of Commerce concerning license applications, will
not be made available to the public without the approval of the
Secretary of Commerce.
Sec. 748.2 Obtaining forms; mailing addresses.
(a) You may obtain the forms required by the EAR from any U.S.
Department of Commerce District Office; or in person or by telephone or
facsimile from the following BXA offices:
Export Counseling Division
U.S. Department of Commerce, 14th Street and Pennsylvania Ave.,
N.W., Room H1099D, Washington, D.C. 20230, Telephone Number: (202)
482-4811, Facsimile Number: (202) 482-3617,
Western Regional Offices:
3300 Irvine Avenue, Ste. 345, Newport Beach, CA 92660, Telephone
Number: (714) 660-0144, Facsimile Number: (714) 660-9347,
5201 Great America Pkwy, Ste. 226, Santa Clara, CA 95054, Telephone
Number: (408) 748-7450, Facsimile Number: (408) 748-7470
(b) For the convenience of foreign consignees and other foreign
parties, certain BXA forms may be obtained at U.S. Embassies and
Consulates throughout the world.
(c) All applications should be mailed to the following address,
unless otherwise specified: Bureau of Export Administration, U.S.
Department of Commerce, P.O. Box 273, Washington, D.C. 20044. If you
wish to submit your application using an overnight courier, use the
following address: Bureau of Export Administration, U.S. Department of
Commerce, 14th Street and Pennsylvania Avenue N.W., Room 2705,
Washington, D.C. 20044, Attn: ``Application Enclosed''. BXA will not
accept applications sent C.O.D.
Sec. 748.3 Classification and Advisory Opinions.
(a) Introduction. In light of your responsibility to classify your
item, you may ask BXA to provide you with the correct Export Control
Classification Number (ECCN) to the paragraph (or subparagraph if
appropriate). BXA will advise you whether or not your item is subject
to the EAR and, if applicable, the appropriate ECCN. This type of
request is commonly referred to as a ``Classification Request''. If
requested, for a given end-use, end-user, and/or destination, BXA will
advise you whether a license is required, or likely to be granted, for
a particular transaction. Note that these responses do not bind BXA to
issuing a license in the future. This type of request, along with
requests for guidance regarding other interpretations of the EAR are
commonly referred to as ``Advisory Opinions''.
(b) Classification requests. You must submit your Classification
Request using Form BXA-748P or its electronic equivalent. See the
instructions contained in Supplement No. 1 to part 748 to complete the
Blocks identified for this type of request. Classification Requests
must be sent to BXA at one of the addresses listed in Sec. 748.2(c) of
this part or submitted electronically. Be
[[Page 12813]]
certain that your request is complete and does not omit any essential
information.
(1) Each Classification Request must be limited to 5 items.
Exceptions may be granted by BXA on a case-by-case basis for several
related items if the relationship between the items is satisfactorily
substantiated in the request. Classification requests must be supported
by any descriptive literature, brochures, precise technical
specifications or papers that describe the items in sufficient
technical detail to enable classification by BXA.
(2) You must complete Blocks 1 through 5, 14, 22(b)(c)(d) and (i)
(enter your recommended classification information in these blocks), 24
and 25 on the application when submitting a Classification request. If
you are requesting BXA to classify an item for which precise
specifications are identified in Sec. 748.8 of this part, these
specifications must be addressed in, or attached to, your application.
Consult Sec. 738.2 of the EAR for guidance on classifying items on the
Commerce Control List.
(c) Advisory Opinions. Advisory Opinions must be submitted in
writing to the address listed in Sec. 748.2(c) of the EAR. Both your
letter and envelope must be marked ``Advisory Opinion.''
(1) Your letter must contain the following information if you are
requesting guidance regarding interpretations of the EAR:
(i) The name, title, and telephone and facsimile numbers of the
person to contact,
(ii) Your complete address comprised of street address, city,
state, country, and postal code; and
(2) If you are requesting BXA to determine whether a license is
required, or the licensing policy related to a particular end-use, end-
user, and/or destination, in addition to the information required in
Sec. 748.3(c)(1) you must also include:
(i) All available information on the parties to the transaction and
the proposed end-use or end-user,
(ii) The model number for each item, where appropriate,
(iii) The Export Control Classification Number, if known, for each
item; and
(iv) Any descriptive literature, brochures, technical
specifications or papers that describe the items in sufficient
technical detail to enable BXA to verify the correct classification.
Sec. 748.4 Basic guidance related to applying for a license.
(a) Disclosure and substantiation of facts on license applications.
You, as the applicant, are required to make the complete disclosure of
all parties in interest to the transaction so that BXA may decide on
the license application with the fullest knowledge of all relevant
facts. If the license application is filed for an account other than
that of the applicant, the agent, as applicant must disclose the name
of the agent's principal. Where there is any doubt as to which of
several persons should be named as a party to the license, you must
disclose the names of all such persons and the functions to be
performed by each in Block 24 on your application or an attachment to
your license application.
(b) Applications for the export of items from the United States. A
license application to export items from the United States may be made
only by a person subject to the jurisdiction of the United States who
is in fact the exporter, or by the applicant's duly authorized agent.
This limitation does not apply to applications for the reexport of
items previously exported. An application may be made on behalf of a
person not subject to the jurisdiction of the United States by an
authorized agent in the United States, who then becomes the applicant.
(c) Prohibited from applying for a license. No person convicted of
a violation of any statute specified in section 11(h) of the Export
Administration Act, as amended, at the discretion of the Secretary of
Commerce, may apply for any license for a period up to 10 years from
the date of the conviction. See Sec. 766.25 of the EAR.
(d) Prior action on a shipment. If you have obtained a license
without disclosure of the facts described in this section, the license
will be deemed to have been obtained without disclosure of all facts
material to the granting of the license and the license so obtained
will be deemed void. See part 764 of the EAR for other sanctions that
may result in the event a violation occurs.
(1) Licenses for items subject to detention or seizure. If you
submit a license application for items that you know have been detained
or seized by the Office of Export Enforcement or by the U.S. Customs
Service, you must disclose this fact to BXA when you submit your
license application.
(2) Licenses for items previously exported. You may not submit a
license application to BXA covering a shipment that is already laden
aboard the exporting carrier, exported or reexported. If such export or
reexport should not have been made without first securing a license
authorizing the shipment, you must send a letter of explanation to the
Office of Export Enforcement, U.S. Department of Commerce, 14th and
Pennsylvania Avenue, N.W., H4520, Washington, D.C., 20230. The letter
must state why a license was not obtained and disclose all facts
concerning the shipment that would normally have been disclosed on the
license application. You will be informed of any action and furnished
any instructions by the Office of Export Enforcement.
(e) Multiple shipments. Your license application need not be
limited to a single shipment, but may represent a reasonable estimate
of items to be shipped throughout the validity of the license. Do not
wait until the license you are using expires before submitting a new
application. You may submit a new application prior to the expiration
of your current license in order to ensure uninterrupted shipping.
(f) Second application. You may not submit a second license
application covering the same proposed transaction while the first is
pending action by BXA.
(g) Resubmission. If a license application is returned without
action to you by BXA or your application represents a transaction
previously denied by BXA, and you want to resubmit the license
application, a new license application must be completed in accordance
with the instructions contained in Supplement No. 1 to part 748. Cite
the Application Control Number on your original application in Block 24
on the new license application.
(h) Emergency processing. If you believe an emergency situation
beyond your control necessitates expedited processing of your license
application, you should contact BXA's Exporter Counseling Division of
the Office of Exporter Services. This office may be reached by
telephone on (202) 482-4811 or by facsimile on (202) 482-3617. These
procedures do not apply to emergency handling of Special Comprehensive
License applications.
(1) How to request emergency handling. If your license application
is already pending with BXA, contact the Exporter Counseling Division
directly on either number listed in paragraph (h) of this section. If
you have not yet submitted your license application, include a written
letter with the title ``Emergency Handling Request'' with your license
application. The letter must include:
(i) A justification for the request, supported, where appropriate,
with copies of orders, communications, or other documentation to
substantiate that your request constitutes a valid emergency. You may
be specifically requested to supply other documents not included with
your submission.
[[Continued on page 12814]]