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

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 IX of a multi-part series of summaries on this BIS final rule. Part IX covers BIS' savings clause for certain shipment, as well as the amendments to CCL Category 7 (Navigation and Avionics), CCL Category 8 (Marine), and CCL Category 9 (Propulsion Systems, Space Vehicles, and Related Equipment). See future issues of ITT for additional summaries.

"Savings Clause" for Certain Shipments

According to BIS, shipments of items removed from license exception eligibility or eligibility for export without a license as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, on August 15, 2005, pursuant to actual orders for export to a foreign destination, may proceed to that destination under the previous license exception eligibility or without a license so long as they have been exported from the U.S. before September 13, 2005. However, BIS notes that any such items not actually exported before midnight, on September 13, 2005, require a license in accordance with this regulation.

Category 7 - Navigation and Avionics

ECCN 7A002. BIS states that Export Control Classification Number (ECCN) 7A002 (Gyros, and angular or rotational accelerometers) is amended by:

(a) Revising the time frame in which drift rate stability is measured from "over a period of three months'' to "over a period of one month'' in 7A002.a;

(b) Revising the linear acceleration level from "below 10 g'' to "below 12 g'' in 7A002.a.1;

(c) Revising the linear acceleration level from "from 10 g to 100 g'' to "from 12 g to 100 g'' in 7A002.a.2;

(d) Redesignating 7A002.b as 7A002.c; and

(e) Adding a new control parameter in new paragraph 7A002.b (angle random walk in degree per square root hour), including a Note describing that 7A002.b does not control spinning mass gyros, and a Technical Note defining "angle random walk''. This rule also revises the missile technology (MT) control in the License Requirements section to exempt the newly added 7A002.b from MT controls, as this is not a control parameter for gyros on the Missile Technology Control Regime Annex.

BIS explains that the amendments to 7A002.a and the addition of 7A002.b were agreed to by the Wassenaar Arrangement, because 7A002.a only addressed gyroscopes with long-term stability, mainly used for spacecraft, vessels and submersibles. The current control did not adequately address gyroscopes with short-term stability that are used for aircraft, land vehicles, rockets and tactical missiles. This final rule revises 7A002.a and adds new parameters in 7A002.b to address highly accurate gyroscopes necessary to meet the existing inertial system's parameters in 7A003.a. and 7A003.c.1.

ECCN 7A007. According to BIS, ECCN 7A007 is removed and the direction finding equipment is now controlled under ECCN 5A001.e. This amendment is explained in the description of amendments to Category 5 in Part VI of this series of summaries.

Category 8 - Marine

ECCN 8A002. ECCN 8A002 is amended by removing the term "stored program controlled'' from 8A002.h, 8A002.i.2, and the Note following 8A002.i.2. BIS explains that this term is removed because most equipment is computer controlled now and the term no longer adds any value to the control.

Category 9 - Propulsion Systems, Space Vehicles and Related Equipment

ECCN 9A001. BIS states that in this final rule, ECCN 9A001 is amended by:

(a) Revising the heading to make it more general, so that the parameter in the heading could be placed in a new paragraph 9A001.a;

(b) Moving old 9A001.a. and 9A001.b to the new Note to 9A001.a; and

(c) Redesignating 9A001.c (aero gas turbine engines that are designed to power an aircraft designed to cruise at Mach 1 or higher for more than 30 minutes) as 9A001.b.

BIS notes that the Wassenaar Arrangement agreed to the revisions in ECCN 9A001 because it was unclear whether the certification referred to in 9A001 had to be done by aviation authorities in a Wassenaar Participating State or whether the certification could be done by aviation authorities in any country, including rogue countries who could evade the Wassenaar controls by issuing civil certification for aircraft that would never be considered acceptable by a Wassenaar Participating State.

(See ITT's Online Archives or 07/19/05, 07/22/05, 07/25/05, 07/26/05, 07/27/05, 07/28/05, 07/29/05, and 08/01/05 news, 05071930, 05072215, 05072515, 05072620, 05072725, 05072825, 05072925, and 05080125, for Parts I - VIII 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.