BIS Final Rule Implements Revised Formula for Calculating Computer Performance (APP Measured in WT Replaces CTP Measured in MTOPS) (Part I)

The Bureau of Industry and Security (BIS) has issued a final rule which amends the Export Administration Regulations (EAR) to implement the Wassenaar Arrangement's December 2005 agreement to revise the formula for calculating computer performance from Composite Theoretical Performance (CTP) measured in Millions of Theoretical Operations Per Second (MTOPS) to Adjusted Peak Performance (APP) measured in Weighted TeraFLOPS (Trillion Floating point Operations Per Second) (WT).

BIS' final rule also:

establishes new control levels in Category 4 of the Commerce Control List (CCL) expressed in WT;

renames License Exception CTP to License Exception APP (Adjusted Peak Performance) to correspond to the new formula;

makes conforming changes to the EAR based on the new computer parameter, such as, revising the parameters for eligibility of License Exception APP;

moves Bulgaria from Computer Tier 3 to Computer Tier 1;

removes High Performance Computer (XP) and Missile Technology (MT) controls from certain Export Control Classification Numbers (ECCNs) in Category 4 of the CCL; and

removes the section of the EAR dedicated to various requirements for high performance computers (HPCs).

This is Part I of a multi-part series of summaries on BIS' final rule and provides an overview of the changes made by the final rule. See future issues of ITT for additional summaries.

Final rule effective April 24, 2006, except for Bulgaria's move to Tier 1. BIS notes that its final rule is effective on April 24, 2006, with the exception of the movement of Bulgaria from Computer Tier 3 to Computer Tier 1 in 15 CFR 740.7, which will be effective June 3, 2006.

BIS final rule (FR Pub 04/24/06, D/N 0604047096-6096-01) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-3647.pdf.