Details of BIS Wassenaar Final Rule Changes (Categories 8-9)

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 V 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 V covers the changes made to various Export Control Classification Numbers (ECCNs) in Commodity Control List (CCL) Categories 8-9. See future issue for final summary (Part VI) of the remaining changes.

Category 8 - Marine

ECCN 8A001 is amended by removing the word ‘‘Fiber’’ from paragraph 8A001.d.3 and replacing ‘‘optic’’ with ‘‘optical,’’ because this paragraph addresses parameters for untethered submersible vehicles, which, by definition, are not tethered by fiber.

ECCN 8A002 is amended by:

• Adding paragraph 8A002.r to License Exceptions GBS and CIV, because this paragraph was moved from 6A001.c, which was eligible for these license exceptions.
• Cascading the parameters in paragraph 8A002.i.l to make clear that remotely controlled articulated manipulators specially designed for use with submersibles vehicles are controlled when the system that controls the manipulators uses either measured or detected information from tactile sensors.
• Adding single quotes around the term ‘active noise reduction or cancellation systems’ in paragraph 8A002.o.3.b and moving some of the text of 8A002.o.3.b into a new technical note that defines ‘active noise reduction or cancellation systems’ to move definitional text out of the parameter paragraph.
• Cascading the text in 8A002.p to make it clear that both the ‘‘power output’’ and ‘‘using divergent nozzle and flow conditioning vane techniques’’ parameters apply to pumpjet propulsion systems.
• Cascading the parameters in 8A002.q to make it clear that closed circuit rebreathers and semi-closed circuit rebreathers are types of underwater swimming and diving equipment that are controlled by this paragraph
• Replacing the word ‘‘apparatus’’ with ‘‘rebreathers,’’ in 8A002.q.1 and q.2, and replacing the phrase ‘‘its user’’ with ‘‘their users’’ to clarify the Note to 8A002.q.
• Adding a new paragraph 8A002.r, which has been moved from 6A001.c, because the specified diver deterrent systems have no capability to detect divers and are only used to deter divers. This rule also adds related notes describing the scope of 8A002.r to help readers understand the scope of the control better.

Category 9 - Aerospace and Propulsion

ECCN 9A001 is amended by adding a reference to 9E003.i in 9A001.a as a new parameter for control of aero gas turbine engines.

ECCN 9A003 is amended by replacing the phrase ‘‘having any of the following’’ with ‘‘any of the following’’ in the Header because the Items paragraphs do not list characteristics of engine propulsion systems. In addition, this rule adds 9E003.i (‘‘technology’’ for adjustable flow path systems designed to maintain engine stability for gas generator turbines, fan or power turbines, or propelling nozzles) to the heading of 9A003.

ECCN 9A991 is amended by adding double quotes around the term ‘‘civil aircraft’’ in paragraph 9A991.b in the Items paragraph of the List of Items Controlled, because this is a defined term in Part 772.

ECCN 9B001 is amended by adding double quotes around the term ‘‘tip shroud’’, because this rule adds a definition to Part 772 of the EAR.

ECCN 9B002 is amended by moving and cascading the text that appeared in the Heading to the Items paragraph of the List of Items Controlled section to improve clarity of the control. In addition, this rule replaces the reference to ‘‘9E003.a. or 9E003.h’’ with ‘‘9E003.h and 9E003.i’’ in the new paragraph 9B002.b, to harmonize it with the movement of ‘‘technology’’ for adjustable flow path systems designed to maintain engine stability for gas generator turbines, fan or power turbines, or propelling nozzles from 9E003.a.10 to 9E003.i.

ECCN 9B008 is amended by revising the Heading for clarity of the control scope of the entry.

ECCN 9D003 is amended by:

• Replacing the phrase ‘‘specially designed or modified for the ‘‘use’’ of ‘‘Full Authority Digital Electronic Engine Controls Systems’’’’ with ‘‘incorporating ‘‘technology’’ specified by 9E003.h and used in’’ to use less words to refer to the same parameters.
• Removing the phrase ‘‘as follows (see List of Items Controlled)’’ to harmonize with the revisions described in this entry.
• Removing paragraphs 9D003.a and .b, and adding in their place the sentence, ‘‘The list of items controlled is contained in the ECCN heading.’’

ECCN 9D004 is amended by adding double quotes around the newly defined term ‘‘tip shrouds’’ in paragraph 9D004.f.

ECCN 9E001 is corrected by adding back the MT and AT paragraphs of the License Requirement section that was inadvertently removed on January 2, 2008.

ECCN 9E003 is amended by:

• Revising the SI control paragraph in the License Requirements section to add paragraph .j, which was previously listed as .i but is redesignated as .j by this rule to the existing list. The SI control paragraph now includes a.8, .h, .i, and .j.
• Adding double quotes around the newly defined term ‘‘tip shrouds’’ in paragraph 9E003.a.1, a.4, and a.5.
• Replacing the word ‘‘rotating’’ with ‘‘rotor’’ in 9E003.a.8, because this is a more precise description of the component to be controlled.
• Adding a Technical Note to define ‘‘damage tolerant’’ after 9E003.a.8 to add clarity to the control and adding single quotes around ‘damage tolerant’ to identify that this term is defined in 9E003.
• Adding ‘‘or’’ to the end of the text for a.8, because a.8 is the last paragraph of substance before a.11, which is the last paragraph of 9E003.a.
• Removing and reserving paragraph .a.10 and the related notes and adding a new Note Bene stating ‘‘For adjustable flow path geometry, see 9E003.i.’’
• Redesignating paragraph .i as paragraph .j in the Items paragraph of the List of Items Controlled section, in order to move technology for ‘‘adjustable flow path geometry and associated control systems’’ from 9E003.a.10 to the new 9E003.i. This paragraph was moved to move it out from under the stipulation in 9E003.a that this particular technology must be ‘‘required’’ for the ‘‘development’’ or ‘‘production’’ of any of the following gas turbine engine components or systems. Instead the new more precise control is for specifically listed ‘‘technology’’ for adjustable flow path systems designed to maintain engine stability for gas generator turbines, fan or power turbines, or propelling nozzles.

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.

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.

See ITT’s Online Archives or 05/23/11, 05/24/11, 05/25/11, and 05/26/11 news, 11052305, 11052403, 11052514, and 11052625, for Parts I-IV of BP’s multi-part series of summaries.)

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