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

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 IX, the final partof a multi-part series of summaries on this BIS final rule. Part IX covers changes made with respect to regulations concerning the Wassenaar Arrangement and certain definitions amended and removed from the regulations by this final rule.

Amendments to 15 CFR 743.1 - Wassenaar Arrangement

The final rule amends 15 CFR 743.1 by:

Deleting ECCN 2B003 from the Note to paragraph (c)(1)(ii) to conform to the Wassenaar Sensitive List. This relates to Wassenaar reporting requirements for ECCNS 2D001, 2E001, and 2E002.

Removing 5A001.b.5 from paragraph (c)(1)(v), because BIS does not need to require reporting for commodities that are not eligible for License Exceptions GBS, CIV, TSR, LVS, CTP, or GOV. BIS can get the necessary information to fulfill U.S. obligations for reporting to the Wassenaar Arrangement from license application data.

Adding 5A001.b.5 under the 5B001.a in paragraph (c)(1)(v), because 5B001.a is specially designed for 5A001.b.5, is eligible for license exception and is on the Wassenaar Arrangement's Sensitive List.

Adding 5D001.a entry in paragraph (c)(1)(v), because software for the development or production of equipment, components, or accessories classified under 5B001.a is on the Wassenaar Arrangement's Sensitive List and is eligible for License Exceptions CIV and TSR. This addition is necessary in order for the U.S. to fulfill its reporting obligations to the Wassenaar Arrangement.

Adding 6A002.a.1.a, 6A002.a.1.b, 6A002.a.2.a (changing 350 uA/Im to 700 uA/Im in 6A002.a.2.a.3.a), 6A002.a.3, 6A002.c, 6A002.e; 6A003.b.3, 6A003.b.4, and 6A006.a to paragraph (c)(1)(vi), because these commodities are on the Wassenaar Arrangement's Sensitive List and are eligible for license exception under the EAR. This addition is necessary in order for the U.S. to fulfill its reporting obligations to the Wassenaar Arrangement.

Revising 6A006.g to 6A006.d in paragraph (c)(1)(vi), because this paragraph has moved under ECCN 6A006.

Removing 6D003.a from paragraph (c)(1)(vi), because that ECCN is not eligible for License Exceptions LVS, GBS, CIV, APP, TSR, or GOV.

Removing 6A006.h from paragraph (c)(1)(vi), because this paragraph has been removed from 6A006 by agreement of the Wassenaar Arrangement.

Adding a note to paragraph (c)(1)(vi) to clarify the reporting requirement for 6A002.a.3.

Redesignating paragraphs (c)(1)(vii) and (c)(1)(viii) as paragraphs (c)(1)(viii) and (c)(1)(ix), in order to add a new paragraph (c)(1)(vii) to cover Category 7: 7D002; 7D003.c, d.1 to d.4, and d.7; 7E001; and 7E002, because these commodities are on the Wassenaar Arrangement's Sensitive List and are eligible for license exception under the EAR. This addition is necessary in order for the U.S. to fulfill its reporting obligations to the Wassenaar Arrangement.

Adding 9D001 (for 9B001.b and 9E003 as described in this paragraph), 9D002 (for 9B001.b), 9D004.a, 9D004.c, 9E001 for technology controlled for NS reasons, 9E002, 9E003.a.2, a.3.b, a.3.c, a.4, a.5, a.8, and a.9 to newly designated paragraph (c)(1)(ix), because these commodities are on the Wassenaar Arrangement's Sensitive List and are eligible for license exception under the EAR. BIS states that this addition is necessary in order for the U.S. to fulfill its reporting obligations to the Wassenaar Arrangement.

The final rule revises the title to Supplement No. 1 to 15 CFR Part 743 from "Wassenaar Arrangement Member Countries" to "Wassenaar Arrangement Participating States," because this is the term used by the Wassenaar Arrangement to address its members. In addition, the final rule adds Croatia, Estonia, Latvia, Lithuania, Malta, and South Africa to the list of Wassenaar Arrangement Participating States in Supplement No. 1 to 15 CFR Part 743, because they were recently admitted to the Wassenaar Arrangement.

Amendments to Definitions in 15 CFR Part 772

The final rule removes the definition for "Asynchronous transfer mode" ("ATM") from 15 CFR 772.1, and moves it to the related definitions paragraph in the List of Items Controlled section of ECCN 5A991, because the term is only referred to in 5A991.c.12.

The rule adds a reference to Category 2 in the definition for "Electronic assembly," because of the addition of controls on electronic assemblies in 2B006.b.1.

The rule removes the definition for "time-modulated ultra-wideband,'' because the Wassenaar Arrangement agreed to remove it from 5A001.b.4 and 5A002.a.6, and instead use the undefined term "ultra-wideband modulation techniques."

The rule adds the definition for "unmanned aerial vehicle" ("UAV") to 772.1, which is used in ECCNs 9A012 and newly added ECCN 9B010. In addition, UAVs are addressed in 15 CFR 744.3.

(See ITT's Online Archives or 09/19/06, 09/21/06, 09/22/06, 09/25/06, 09/26/06, 09/27/06, 09/28/06, and 09/29/06 news, 06091915, 06092120, 06092230, 06092530, 06092625, 06092730, 06092825, and 06092925 for Parts I, II, III, IV, V, VI, VII, and VIII 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