BIS, State Issue Second Proposed Rule on Export Controls for Fire Control Systems

Commerce is proposing to amend the Export Administration Regulations as part of an initiative under Export Control Reform to transfer less sensitive United States Munitions List Category XII items — Fire Control, Laser, Imaging, Guidance and Control Equipment — to the Commerce Control List (CCL), BIS said (here). For certain dual-use infrared detection items, the proposed rule would provide more controls for certain software and technology, disqualify the use of some license exceptions, modify licensing policy, and broaden license requirements for specified transactions involving military end-users or foreign military goods, said BIS. Additionally, the rule would harmonize provisions within the Export Administration Regulations (EAR) by rewriting controls associated with certain quartz rate sensors and uncooled thermal imaging cameras, BIS said.

Meanwhile, the State Department announced plans (here) to amend USML Category XII to describe more accurately the items warranting control on the USML, as well as categories VIII, XIII, and XV, to reflect transfers of certain items to Category XII. BIS said its changes, in large part, stem from public comments about rules first proposed by BIS and State on May 5 (see 1505040021). Commenters consistently requested that State tailor Category XII to comprise only items "specially designed for the military," prompting State to reevaluate that grouping "in its entirety," State said. BIS and State will accept comments on changes proposed for these round of ECR until April 4.

The most significant change in State's second proposed rule would be that certain items would be controlled based on the design intent of the manufacturer. BIS' proposed rule would expand the license requirement in § 744.9, and limit the availability of certain license exceptions, including Technology and Software under Restriction (TSR), Additional Permissive Re-exports (APR), and Strategic Trade Authorization (STA). BIS' proposed rule would revise the following ECCNs:

• 0A919: nuclear materials and facilities equipment [and miscellaneous items]
• 2A984: Concealed object detection equipment operating in the frequency range from 30 GHz to 3000 GHz and having a spatial resolution of 0.5 milliradian up to and including 1 milliradian at a standoff distance of 100 meters; and “parts” and “components” not elsewhere specified
• 6A002: optical sensors and equipment, and “components” therefor
• 6A003: cameras, systems or equipment, and “components” therefor
• 6A004: optical equipment and “components”
• 6A005: “lasers,” “components” and optical equipment, excluding items that are subject to the export licensing authority of the Nuclear Regulatory Commission
• 6A007: gravity meters (gravimeters) and gravity grandiometers
• 6A008: Radar systems, equipment and assemblies, having any of the following (see List of Items Controlled), and “specially designed” “components” therefor.
• 6A107: gravimeters or gravity grandiometers, other than those controlled by 6A007, designed or modified for airborne use, and “specially designed” “parts” and “components” therefor.
• 6A611: Acoustic systems and equipment, radar, and “parts,” “components,” “accessories,” and “attachments” “specially designed” therefor, “specially designed” for a military application that are not enumerated in any USML category or other ECCN are controlled by ECCN 3A611. Military fire control, laser, imaging, and guidance and control equipment that are not enumerated in any USML category or ECCN are controlled by ECCN 7A611.
• 6A990: read-out integrated circuits (ROICs) that enable 3-D automotive imaging and ranging in the wavelength range exceeding 1,200 nanometers (nm), but not exceeding 3,000 nm, at distances up to 150 meters
• 6A993: cameras, not controlled by 6A003 or 6A203
• 6D002: “software” “specially designed” for the “use” of equipment controlled by 6A002.b, 6A008 or 6B008
• 6D003: “other ‘software’ as follows (see list of items controlled)”
• 6D991: “software” not elsewhere specified “specially designed” for the “development,” “production,” or “use” of commodities controlled by 6A002.a.1.d, 6A990, 6A991, 6A996, 6A997, or 6A998
• 6E001: “Technology” according to the General Technology Note for the “development” of equipment, materials or “software” controlled by 6A (except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, 6A998, or 6A999.c), 6B (except 6B995), 6C (except 6C992 or 6C994), or 6D (except 6D991, 6D992, or 6D993).
• 6E002: “Technology” according to the General Technology Note for the “production” of equipment or materials controlled by 6A (except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, 6A998 or 6A999.c), 6B (except 6B995) or 6C (except 6C992 or 6C994).
• 6E990: technology “required” for the “development” or “production” of commodities controlled by ECCN 6A990.
• 7A001: accelerometers and “specially designed “components” therefor
• 7A002: Gyros or angular rate sensors, having any of the following (see List of Items Controlled) and “specially designed” “components” therefor.
• 7A003: ‘Inertial measurement equipment or systems’
• 7A005: Global Navigation Satellite Systems (GNSS) receiving equipment having any of the following (see List of Items Controlled) and “specially designed” “components” therefor.
• 7A101: Accelerometers, other than those controlled by 7A001 (see List of Items Controlled), and “specially designed” “parts” and “components” therefor.
• 7A102: Gyros, other than those controlled by 7A00, and “specially designed” “parts” and “components” therefor.
• 7A611: Military Fire Control, Laser, Imaging, Guidance and Control Equipment
• 7A994: Other navigation direction finding equipment, airborne communication equipment, all aircraft inertial navigation systems not controlled under 7A003 or 7A103, and other avionic equipment, including “parts” and “components,” not elsewhere specified
• 8A002: marine systems, equipment, “parts,” and “components”
• 9A991: “Aircraft” not elsewhere specified, gas turbine engines not controlled by 9A001 or 9A101, and “parts” and “components,” not elsewhere specified

BIS' proposed rules would also add the following ECCNs:

• ECCN 0E987: technology required for the “development” or “production” of commodities controlled under ECCN 0A987, if such commodities incorporate a focal plane array or image intensifier tube
• 7B611: test, inspection, and production commodities “specially designed” for military fire control, laser, imaging, and guidance and control commodities
• 7D611: software “specially designed” for the “development,” “production,” operation or maintenance of commodities controlled by 7A611 or 7B611
• 7E611: technology “required” for the “development,” “production,” operation, installation, maintenance, repair, overhaul, or refurbishing of commodities controlled by 7A611 or 7B611, or software controlled by 7D611.
• 7E994: “Technology,” not elsewhere specified, for the “development,” “production”, or “use” of navigation, airborne communication, and other avionics equipment.

All USML references in the rule pertain to the list of defense items controlled for export or temporary import pursuant to the International Traffic in Arms Regulations (ITAR), not items controlled by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the purpose of permanent import, according to BIS.

BIS intends to publish a final rule after responding to public comments, the agency said.

(Federal Register 2/19/16)