Details of BIS Wassenaar Final Rule Changes (Categories 1-2)

The Bureau of Industry and Security has issued a final rule, effective May 20, 2011, which revises the Export Administration Regulations to implement the changes made to the Wassenaar Arrangement's¹ List of Dual Use Goods and Technologies maintained and agreed to by governments participating in the Wassenaar Arrangement’s December 2010 Plenary Meeting.

This is Part I of a multi-part series of summaries of the changes made to harmonize the Export Administration Regulations with the changes made to the Wassenaar List at the 2010 Plenary. Part I covers the changes made to various Export Control Classification Numbers (ECCNs) in Commodity Control List (CCL) Categories 1 and 2. See future issues for summaries of the remaining changes.

Category 1 - Special Materials, Chemicals, Microorganisms, Toxins

ECCN 1A002 is amended by:

• Removing the phrase ‘‘finished or’’ from Notes 2 and 3, because finished products are not generally specified based on the materials they contain.
• Adding a new Note 4 to convey that ECCN ‘‘1A002 does not apply to finished items specially designed for a specific application.’’

ECCN 1A004 is amended by:

• Deleting the phrase ‘‘Nuclear, biological and chemical (NBC)’’ from 1A004.c, because it conflicts with the list in 1A004.c, as it is missing radioactive materials, and is redundant to the list.
• Changing the format of the civil industries from a narrative list to an enumerated list format in paragraph (b) of the Note to 1A004 that is located after the Notes to paragraph 1A004.d, as well as replacing the ‘‘and’’ to ‘‘or’’ between the phrases ‘‘residential safety’’ and ‘‘civil industries’’ in this same paragraph (b) of this same Note. (These changes are made to clarify the meaning of the note.)

ECCN 1B001 is amended by adding the phrase ‘‘specially designed or modified,’’ removing the words ‘‘to manufacture,’’ and adding the word ‘‘for’’ to paragraph 1B001.c to clarify that common textile weaving and interlacing machines are not intended to be controlled. In addition, the note is removed because the new text makes the note unnecessary.

ECCN 1C003 is amended by replacing, for the sake of clarity, the phrase ‘‘initial permeability’’ with ‘‘initial relative permeability’’ in the technical note of paragraph 1C003.a.

ECCN 1C006 is amended by:

• Revising the format of the parameters in 1C006.c from a narrative to a cascaded list format to clarify the text.
• Removing 1C006.e to correct the text. (This paragraph was the last paragraph of a technical note that was moved in 2009 from 1C006.d to the end of 1C006.a.2.e. This paragraph was inadvertently not removed when the technical note was moved.)

ECCN 1C008 is amended by

• Removing ‘‘Non-fluorinated polymeric substances’’ and adding in its place ‘‘Imides’’ in 1C008.a, and adding the word ‘‘compounds’’ to 1C008.b.1, to better describe the scope of the paragraphs that follow.
• Adding ‘‘(PAI) having a ‘glass transition temperature (Tg)’ exceeding 563 K (290° C)’’ to 1C008.a.2—Aromatic polyamide-imides, which adds a temperature property as a parameter.
• Adding the word ‘‘compounds’’ to 1C008.b.1 to add a more complete description of the scope of the paragraphs that follow.
• Removing the CAS numbers for all the compounds in 1C008.b.1.a because CAS numbers are used to describe specific substances, not compounds.
• Adding the word ‘‘acids’’ to 1C008.b.2 to better describe the scope of the paragraphs that follow.
• Adding a new sentence about the PAI test to the technical note at the end of the items paragraph of 1C008. PAI varnishes are sometimes sold and these contain PAI polymers that are only partially polymerized. The added language therefore explains that the Tg parameter should be determined using a PAI specimen that is properly cured to reach a maximum capability.

ECCN 1C010 is amended by:

• Revising the narrative format to a cascaded format in Note 2 to 1C010.e, in order to add a new paragraph (b) to this note to convey that ‘‘Fully or partially resin-impregnated or pitch-impregnated mechanically chopped, milled or cut carbon ‘‘fibrous or filamentary materials’’ 25.0 mm or less in length when using a resin or pitch other than those specified by 1C008 or 1C009.b.’’ are not controlled under 1C010.e.
• Amending the technical note at the end of ECCN 1C010 by splitting it into two separate sentences (ending the first sentence after ‘‘specimen’’), for better readability and clarity. Also, this rule removes the phrase ‘‘with a minimum 90% degree of cure’’ and adding in its place ‘‘In the case of thermoset materials, degree of cure of a dry test specimen shall be a minimum of 90%’’ to clarify the scope of ‘‘degree of cure’’ in the definition for ‘Dynamic Mechanical Analysis glass transition temperature (DMA Tg)’.

ECCN 1C011 is amended by:

• Revising the Missile Technology (MT) paragraph in the License Requirements section because WA has now aligned with the Missile Technology Control Regime in controls for boron and boron alloys; therefore, the parenthetical phrase ‘‘for boron’’ is removed and the MT control applies to both the boron and the boron alloy in 1C011.b.
• Adding a new sentence to number 2 of the Related Controls paragraph to indicate that ‘‘the following are subject to the export licensing authority of the U.S. Department of State, Directorate of Defense Trade Controls’’ and adding ‘‘metal powders mixed with other substances to form a mixture formulated for military purposes’’ to the end of the existing list that includes materials controlled by 1C011.a.
• Replacing the word ‘‘carbide’’ with ‘‘alloys’’ in 1C011.b for boron, and cascading the parameters in two new paragraphs 1C011.b.1 and 1C001.b.2 in order to align with controls under the Missile Technology Control Regime, to make the text more clear, and to recognize the foreign availability and decreased use of boron carbide for military uses.

ECCN 1C111 is amended by adding a note 3 to the Related Controls paragraph to reference ECCN 1C011 for boron and boron alloys, and by removing paragraph 1C111.a.2.b ‘‘Boron alloys with a purity of 85% by weight or more’’ because this control is now in 1C011.b.

Category 2 - Materials Processing

ECCN 2A001 is amended by:

• Removing reference to 2A001.b from the License Exceptions GBS and CIV eligibility paragraphs in ECCN 2A001, because this paragraph is removed and reserved by this rule.
• Removing one of the standards ‘‘or ANSI/ABMA Std 20 Tolerance Class ABEC--7 or RBEC--7’’ from paragraph 2A001.a and leaving only ‘‘or other national equivalents’’ because this language sufficiently describes the applicable standard for the control.
• Removing and reserving paragraph 2A001.b, that controlled specified ball bearings and solid roller bearings because of the wide foreign availability of these commodities.

ECCN 2B001 is amended by removing the phrase ‘‘Having two or more rotary axes and all of the following’’ and adding in its place ‘‘At least two rotary axes having all of the following’’ to clarify the scope of the 2B001.e.2.

ECCN 2B005 is amended by removing the phrase ‘‘allowing for the’’ and adding in its place ‘‘capable of’’ to clarify the control in the introductory text of 2B005.g.

ECCN 2B006 is amended by

• Replacing the phrase ‘‘indication (MPEE)’’ with ‘‘length measurement (E0,MPE)’’ to harmonize with the new ISO standard and replacing the year of the ISO standard from ‘‘2001’’ to ‘‘2009’’ in 2B006.a.
• Replacing the acronym ‘‘MPEE’’ with ‘‘E0,MPE’’ in the Technical Note following 2B006.a to harmonize with the new ISO standard.
• Replacing the phrase ‘‘Machine tools, which’’ with ‘‘2B006 includes machine tools, other than those specified by 2B001, that’’ to clarify the Note following paragraph 2B006.c.
• Removing two superfluous phrases ‘‘are controlled’’ and ‘‘the machine tool function or’’ from the Note following paragraph 2B006.c.

Savings Clause

Shipments of items removed from license exception eligibility or eligibility for export without a license as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, on May 20, 2011, pursuant to actual orders for export to a foreign destination, may proceed to that destination under the previous license exception eligibility or without a license so long as they have been exported from the U.S. before July 19, 2011. Any such items not actually exported before midnight, on July 19, 2011 require a license in accordance with this regulation.

¹The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability.

See future issues of ITT for additional details on the Wassenaar changes being implemented by BIS. (See ITT’s Online Archives or 05/20/11 news, 11052022, BP summary announcing the publication of BIS’ final rule.)

(BIS final rule, D/N 110124056-1119-01, FR Pub 05/20/11)