BIS Final Rule Revises CCL to Conform With Wassenaar Changes, Addition/Expansion of Unilateral U.S. Controls, Etc. (Part VIII)

The Bureau of Industry and Security (BIS) has issued a final rule, effective July 15, 2005, which revises certain entries on the Commerce Control List (CCL) that are controlled for national security reasons in Categories 1, 2, 3, 4, 5 Part I (telecommunications), 6, 7, 8, and 9, and definitions to conform with changes in the Wassenaar Arrangement's List of Dual-Use Goods and Technologies and Statements of Understanding maintained and agreed to by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Wassenaar Arrangement).

In addition, this final rule adds Slovenia to the list of Wassenaar member countries in the EAR. This final rule also adds or expands unilateral U.S. controls on certain items consistent with the amendments made to implement the Wassenaar Arrangement's decisions.

This is Part VIII of a multi-part series of summaries on this BIS final rule. Part VIII covers the remaining amendments to CCL Category 6 (Sensors). Part VII detailed other changes to CCL Category 6. See future issues of ITT for additional summaries.

Amendments to Category 6 - Sensors (Continued)

ECCN 6A006. This final rule amends ECCN 6A006 by:

(a) Splitting 6A006.a (Magnetometers) into three separate paragraphs: 6A006.a.1 to control those using superconductive (SQUID) technology, 6A006.a.2 those using optically pumped or nuclear precession (proton/Overhauser) technology, and 6A006.a.3 to control those using fluxgate technology;

(b) Adding the following two characteristics for 6A006.a.1 (magnetometers using SQUID technology):

1. 006.a.1.a, which are those that have SQUID systems designed for stationary operation with certain characteristics; and
2. 006.a.1.b, which are those that have SQUID systems designed for in-motion operation with certain characteristics;

Note that this final rule removes License Exception LVS (Shipments of Limited Value) eligibility for "magnetometers'' and subsystems defined in 6A006.a.1, because magnetometers and subsystems with these characteristics are utilized in military applications and 6A006.a.1 is the old 6A006.h, which is listed on the Wassenaar Arrangement's Sensitive List (Annex 1).

(c) Revising the noise level (sensitivity) for magnetometers and subsystems defined using optically pumped or nuclear precession (proton/Overhauser) technology, in 6A002.a.2, from "lower (better) than 0.05 nT rms per square root Hz'' to "lower (better) than 20 pT(rms) per square root Hz;

Note also that this final rule removes License Exception LVS eligibility for "magnetometers'' and subsystems defined in 6A006.a.2 using optically pumped or nuclear precession (proton/Overhauser) having a "noise level'' (sensitivity) lower (better) than 2 pT rms per square root Hz, because magnetometers and subsystems with these characteristics are utilized in military applications and are therefore listed on the Wassenaar Arrangement's Sensitive List (Annex 1).

(d) Revising the noise level (sensitivity) for magnetometers and subsystems using fluxgate technology, in 6A006.a.3, from "lower (better) than 0.05 nT rms per square root Hz'' to "lower (better) than 10 pT (rms) per square root Hz at a frequency of 1 Hz;''

(e) Redesignating 6A006.b (induction coil magnetometers) and 6A006.c (fiber optic magnetometers) as 6A006.a.4 and 6A006.a.5;

(f) Redesignating 6A006.d (Magnetic gradiometers), 6A006.e (Fiber optic intrinsic magnetic gradiometers), 6A006.f (Intrinsic magnetic gradiometers other than fiber optic), and 6A006.g (magnetic compensation systems) as 6A006.b.1, 6A006.b.2, 6A006.b.3, and 6A006.c respectively; and

(g) Removing 6A006.h (Superconductive electromagnetic sensors).

According to BIS, the Wassenaar Arrangement agreed to the revisions in 6A006 because it makes no difference what technology is used to perform a measurement, only the sensitivity, therefore the specific technologies were dropped from the control.

BIS explains that commodities no longer controlled under ECCN 6A006, and related technology no longer controlled under 6E001, continue to be controlled for antiterrorism (AT) reasons under ECCNs 6A996 and 6E991, respectively, for exports and reexports to designated terrorism-supporting countries, as set forth in 15 CFR parts 742 and 746 and as indicated in AT Column 1 of the Commerce Country Chart.

ECCN 6A993. BIS' final rule adds ECCN 6A993 to the EAR to control for AT reasons imaging cameras no longer controlled under 6A003.b.4.b (see Note 3 to 6A003.b.4.b). ECCN 6A993 also captures certain cameras that previously were not controlled on the CCL such as cameras incorporating microbolometers made from amorphous silicon or thermopiles that fall below the control thresholds for 6A003. The effect of adding this entry is to require a license to export or reexport certain low performance thermal imaging cameras to those countries determined by the State Department to have provided support for international terrorism.

ECCN 6A996. ECCN 6A996 is amended in this final rule by revising the entry to include not only magnetometers, but also superconductive electromagnetic sensors formerly controlled for national security (NS) reasons in 6A006.h.

ECCNs 6E001 & 6E002. This final rule amends ECCNs 6E001 and 6E002 by:

(a) Removing License Exception Technology and Software Under Restrictions (TSR) eligibility for exports or reexports of 6A001.a.1.b.1 (Object detection or location systems) to destinations outside of Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or the United Kingdom, because 6A001.a.1.b.1 is listed on the Wassenaar Arrangement's Annex 2 (Very Sensitive List).

(b) Replacing 6A001.a.2.a.3 with 6A001.a.2.a.4, and adding 6A001.a.2.a.6 to the list of ineligible commodities under License Exception TSR, because of the redesignation of paragraphs in 6A001.a.2.a and because these paragraphs are listed on the Wassenaar Arrangement's Annex 2 (Very Sensitive List).

ECCN 6E003. According to BIS, ECCN 6E003 is amended by removing ECCN 6E003.f (Technology required for the development or production of non-triaxial fluxgate magnetometers or non-triaxial fluxgate magnetometer systems), to conform with a similar change on the Wassenaar Arrangement list. Technology no longer controlled under ECCN 6E003 continues to be controlled for AT reasons under ECCN 6E993 for exports and reexports to designated terrorism-supporting countries, as set forth in 15 CFR parts 742 and 746 and as indicated in AT Column 1 of the Commerce Country Chart.

ECCN 6E991. BIS states that ECCN 6E991 is amended by making an editorial correction to the heading, i.e., revising the phrase "or use equipment'' to read "or use of equipment.''

ECCN 6E993. In this final rule, ECCN 6E993 is amended by:

(a) Revising the "heading'' to include the phrase "as follows (see List of Items Controlled)'' to clarify that 6E993 only controls the technology in the List of Items Controlled;

(b) Adding a new paragraph 6E993.c to control technology for the development or production of cameras controlled by 6A993, i.e., those cameras decontrolled by Note 3 to 6A003.b.4.b; and

(c) Adding a new paragraph 6E993.d (formally 6E003.f) to control technology required for the development or production of non-triaxial fluxgate magnetometers or non-triaxial fluxgate magnetometer systems.

BIS states that because technology entries generally directly correspond to commodity entries, the shift of commodities from NS-controlled entries to AT-controlled entries (e.g., 6A003 to 6A993) necessitates a corresponding shift in technology controls (e.g., 6E003 to 6E993).

(See ITT's Online Archives or 07/19/05, 07/22/05, 07/25/05, 07/26/05, 07/27/05, 07/28/05, and 07/29/05 news, 05071930, 05072215, 05072515, 05072620, 05072725, 05072825, and 05072925, for Parts I - VII of BP's summary.)

BIS final rule (D/N 050607153-5153-01, FR Pub 07/15/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-13581.pdf.