[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

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BILLING CODE 3510-DT-C

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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

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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.
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    (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.
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    (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]]