BIS Issues Final Rule Implementing Numerous Wassenaar Changes (Part IX - Revisions to CCL Categories 8 and 9)

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 IX of a multipart series of summaries of this final rule, and focuses on the Commerce Control List (CCL) revisions affecting Categories 8 and 9. See footnote for savings clause. See future issues of ITT for additional summaries.

CCL Revisions to Category 8 - Marine

The BIS final rule makes the following changes to Export Control Classification Numbers (ECCNs) in CCL Category 8:

ECCN 8A002 (Systems, equipment and components for submersible vehicles) is amended by:

a. Adding 'and components' to the heading;

b. Revising the unit paragraph to add 'systems' and 'components in $ value';

c. Adding 'and components' to 8A002.a;

d. Adding a new paragraph 8A002.a.4 to control 'Components manufactured from material specified in ECCN 8C001.' and adding a technical note to explain that this control includes components in any stage of manufacture, i.e., not in final form.

Rationale: The completed foam blocks, which are components manufactured from material specified in ECCN 8C001, are ready to use, and therefore it is sensible to control these 'components,' as well as the raw material that is already controlled, thus blocking a current loophole in the control text.

ECCN 8C001 (Syntactic foam designed for underwater use) is amended to add a reference to 8A002.a.4 in the Related Control paragraph of the List of Items Controlled section.

Category 9 - Propulsion Systems, Space Vehicles and Related Equipment

Category 9 is amended by revising the title of Category 9 to read "Aerospace and Propulsion," because this Category contains a significant amount of aerospace items.

The BIS final rule also makes the following changes to ECCNs in CCL Category 9:

ECCN 9D004 is amended by:

a. Revising the License Requirement section to exclude the newly added paragraphs 9D004.f and .g;

b. Adding a new paragraph 9D004.f to control software specially designed to design the internal cooling passages of aero gas turbine engine blades, vanes, and tip shrouds; and

c. Adding a new paragraph 9D004.g to control software having all of the following characteristics: Being specially designed to predict aero thermal, aeromechanical and combustion conditions in gas turbine engines; and having theoretical modeling predictions of the aero thermal, aeromechanical and combustion conditions, which have been validated with actual turbine engine (experimental or production) performance data.

Rationale: ECCN 9D004 is amended because this type of software is used in highly advanced research domains and is not part of the "off the shelf" market. Rather, it is developed, and daily improved, by aircraft engine manufacturers. The software is used in the setting of new engines, and the quality is crucial for improving the performances of aircraft engines.

ECCN 9E001 is amended by revising the heading and the national security controls to correct the citation 9A001.c to read 9A001.b.

ECCN 9E002 is amended by revising the heading to correct the citation 9A001.c to read 9A001.b.

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, 11/15/07, 11/19/07, 11/20/07, and 11/26/07 news, 07110825, 07110915, 07111330, 07111420, 07111535, 07111935, 07112030, and 07112620, for Parts I-VIII, 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