BIS Issues Final Rule Implementing Numerous Wassenaar Changes (Part VI - Revisions to CCL Category 5 Part 1)

The Bureau of Industry and Security has issued a final rule, effective November 5, 2007¹, which revises the Export Administration Regulations to implement changes to the (1) Wassenaar Arrangement's List of Dual Use Goods and Technologies (Wassenaar List), and (2) 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, or WA), as agreed upon in the December 2006 Wassenaar Arrangement Plenary Meeting.

This is Part VI of a multipart series of summaries of this final rule, and focuses on the Commerce Control List (CCL) revisions affecting Category 5 Part 1. See footnote for savings clause. See future issues of ITT for additional summaries.

CCL Revisions to Category 5 Part 1 - Telecommunications

The BIS final rule makes the following changes to Export Control Classification Numbers (ECCNs) in CCL Category 5 Part 1:

ECCN 5A001 (Telecommunications systems, equipment, and components) is amended by:

a. Revising the phrase 'telecommunication transmission equipment and systems' to read 'telecommunication systems and equipment' in 5A001.b, because 5A001.b controls transmission equipment, but also receivers, transmitters, and transceivers.

b. Revising the scope of parameters from 'any' to 'all' in 5A001.b.2 for radio equipment, because these features are more commonly found in radio equipment today as a result of technological advances;

c. Removing the parameter in 5A001.b.2.a 'incorporating adaptive techniques providing more than 15 dB suppression of an interfering signal';

Rationale: These revisions are made to 5A001 because the parameter is obsolete due to technological advances in Digital Signal Processing (DSP).

d. Adding 5A001.g to the NS:2 control paragraph in the License Requirements section; and

e. Adding a new paragraph 5A001.g to control specially designed Passive Coherent Location systems or equipment.

Rationale: Revisions are made to 5A001.g because passive location systems can be used in air defense networks to detect and track aircraft without being detected themselves and have the ability to detect aircraft designed to be stealthy. These systems can also be used for civil applications, such as analog FR radio, cellular phone base stations and digital audio broadcast (DAB).

Note: Adding 5A001.g (specially designed Passive Coherent Location systems or equipment) to ECCN 5A001 consequently adds a license requirement for related development and production software in ECCN 5D001 and development, production, and use technology in ECCN 5E001, for the exports and reexports to all destinations, except Canada, under NS Column 1 of the Commerce Country Chart and 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 5A991 is amended by adding 5A991.b.7.d to maintain anti-terrorism controls on radio equipment operating in the 1.5 MHz to 87.5 MHz band and incorporating adaptive techniques providing more than 15 dB suppression of an interfering signal, which this rule removed from 5A001.b.2.a.

Note: Adding 5A991.b.7.d to ECCN 5A991 consequently maintains a license requirement for related development, production, and use software in ECCN 5D991, for the 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. However, the Wassenaar Arrangement agreed to maintain national security controls for the related technology for this equipment in ECCN 5E001 by adding a new paragraph 5E001.c.4.c.

ECCN 5E001 is amended by adding a new paragraph 5E001.c.4.c to maintain national security and anti-terrorism controls on the technology for the development or production of certain shortwave radios employing adaptive interference suppression techniques, which this rule is removing from 5A001.b.2.a.

¹See Part I of BP's series of summaries for details on the final rule's "savings clause" for exports on dock for loading, on lighter, or laden aboard an exporting carrier, or en route aboard a carrier to a port of export.

(See ITT's Online Archives or 11/08/07, 11/09/07, 11/13/07, 11/14/07, and 11/15/07 news, 07110825, 07110915, 07111330, 07111420, and 07111535, for Parts I-V, respectively.)

(Comments regarding the collections of information associated with this rule, including suggestions for reducing the burden, should be sent to OMB Desk Officer, New Executive Office Building, Washington, DC 20503. Attention: David Rostker; and to the Office of Administration, Bureau of Industry and Security, Department of Commerce, 14th St. and Pennsylvania Avenue, NW., Room 6883, Washington, DC 20230.)

BIS Final Rule (D/N 070105004-7050-01, FR Pub 11/05/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-21247.pdf