BIS Final Rule Revises CCL, Adds/Expands Unilateral U.S. Controls, Etc. to Conform to Wassenaar Changes (Part IV)

The Bureau of Industry and Security (BIS) has issued a final rule, effective September 7, 2006, which amends the Export Administration Regulations (EAR) at 15 CFR Parts 740, 743, 772, and 774 to implement changes made to the Wassenaar Arrangement's List of Dual-Use Goods and Technologies (Wassenaar List), and Statements of Understanding maintained and agreed to by the governments participating in the Wassenaar Arrangement.

Specifically, this final rule revises certain entries on the Commerce Control List (CCL) that are controlled for national security reasons in Categories 1, 2, 3, 5 Part I (Telecommunications), 5 Part II (Information Security), 6, 8, and 9, and definitions to conform with changes in the Wassenaar List.

This is Part IV of a multi-part series of summaries on this BIS final rule. Part IV focuses, in part, on the amendments affecting CCL Category 3 (Electronics). Due to the large number of amendments to CCL Category 3, Part V will cover the remaining amendments affecting this category. See future issues of ITT for additional summaries.

Amendments to Category 3 - Electronics

ECCN 3A001. According to BIS, the final rule amends Export Control Classification Number (ECCN) 3A001 by:

(a) Revising the CIV paragraph in the License Exception section by replacing reference to 3A001.a.3.b with 3A001.a.3, because this rule moves 3A001.a.3.b to 3A001.a.3; and removing the reference to 3A001.a.3.c, because this rule deletes this paragraph.

(b) Removing 3A001.a.3.c (interconnects), because they cannot be effectively controlled, as they are now integrated into mass market products.

(c) Incorporating 3A001.a.3.b into 3A001.a.3 to revise the format of 3A001.a.3.

(d) Revising the Note 2 to 3A001.b.2 to avoid incorrect interpretation that it is only relevant if the device spans more than one entire range.

(e) Adding the word "Discrete" before 3A001.b.3, which reads "Microwave transistors having any of the following:" to add clarification.

(f) Revising the Note to 3A001.b.3 (Microwave transistors) to add clarification and avoid misinterpretation.

(g) Revising the operation frequency for microwave sold state amplifiers and microwave assemblies/modules containing microwave amplifiers from "3 GHz" to "3.2 GHz" in 3A001.b.4.f. BIS states that this change was made for consistency with the parameter in 3A001.b.2.a (MMIC amplifiers), 3A001.b.3.a (transistors) and 3A001.b.4.a (solid state amplifiers).

(h) Revising Note 2 to 3A001.b.4 to avoid incorrect interpretation that it is only relevant if the device spans more than one entire range.

(i) Adding a Technical Note to 3A001.b.4.f.3 to eliminate ambiguity in the case of amplifiers having performance both above and below the frequency threshold.

ECCN 3A991. BIS' final rule amends ECCN 3A991by:

(a) Revising 3A991.c, because the rule entitled, "December 2004 Wassenaar Arrangement Plenary Agreement Implementation: Categories 1, 2, 3, 4, 5 Part I (telecommunications), 6, 7, 8, and 9 of the Commerce Control List; Wassenaar Reporting Requirements; Definitions; and Certain New or Expanded Export Controls" that was published in the Federal Register on July 15, 2005 (70 FR 41094) modified the 3A001.a.5 entry for analog-to-digital converters by revising the total conversion time in ns to output rate in million words per second, however, the 3A991.c entry was not appropriately adjusted to conform with this revision. Therefore, BIS states that this rule revises the output rate to millions of words per second in 3A991.c.

(b) Removing 3A991.j.2 (rechargeable cells and batteries) because it was erroneously created, and is a duplicate entry to 3A001.e.1.b. Because of this removal, paragraph 3A991.j.1 will become 3A991.j to conform with the structure format of the CCL.

ECCN 3B001. BIS' final rule amends ECCN 3B001 by:

(a) Removing 3B001.a.1.a, because certain EPI tools are not a critical technology in the semiconductor manufacturing process and are not a key enabler in the production of semiconductors.

(b) Revising the formula for minimum resolvable feature size in the technical note following 3B001.f.1.b by replacing the "Fm" with "nm" to conform with the corresponding entry in the Wassenaar Arrangement's List of Dual-Use Goods and Technologies.

BIS notes that for equipment no longer controlled under ECCN 3B001.a.1.a, related software controlled under 3D001 and 3D002, and related technology controlled under 3E001, there remains a license requirement under ECCNs 3B991.b.1.d.1, 3D991, and 3E991, 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 3B991. BIS' final rule amends ECCN 3B991 by:

(a) Revising the "unit" paragraph in the List of Items Controlled section to provide instructions to input dollar value in the unit block on a license application for components and accessories;

(b) Redesignating paragraphs 3B991.b.1.d.1 and 3B991.b.1.d.2 as 3B991.b.1.d.2 and 3B991.b.1.d.3 respectively;

(c) Adding a new paragraph 3B991.b.1.d.1 to maintain AT controls for stored program controlled equipment for epitaxial growth capable of producing a silicon layer with a thickness uniform to less than 2.5% across a distance of 200 mm or more (previously controlled under ECCN 3B001.a.1.a).

(See ITT's Online Archives or 09/19/06, 09/21/06, and 09/22/06 news, 06091915, 06092120, and 06092230 for Parts I, II, and III of BP summary.)

BIS final rule (D/N 060807211-6211-01, FR Pub 09/07/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-7385.pdf