[Federal Register: March 25, 1996 (Rules and Regulations)]
[Page 12764-12814]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[[pp. 12764-12814]] Export Administration Regulation; Simplification of Export
Administration Regulations
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BILLING CODE 3510-DT-C
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PART 740--LICENSE EXCEPTIONS
Sec.
740.1 Introduction.
740.2 Restrictions on all License Exceptions.
740.3 License Exceptions based on the Commerce Control List (LST).
740.4 Temporary imports, exports, and reexports (TMP).
740.5 Servicing and replacement of parts and equipment (RPL).
740.6 Governments and international organizations (GOV).
740.7 Gift parcels and humanitarian donations (GFT).
740.8 Technology and software--unrestricted (TSU).
740.9 Baggage (BAG).
740.10 Aircraft and vessels (AVS).
740.11 Additional Permissive Reexports (APR).
Supplement No. 1 to Part 740--Country Groups
Supplement No. 2 to Part 740--Items That May Be Donated to Meet Basic
Human Needs Under the Humanitarian License Exception
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60
FR 42767, August 17, 1995).
Sec. 740.1 Introduction.
In this part, references to the EAR are references to 15 CFR
chapter VII, subchapter C.
(a) Scope. A ``License Exception'' is an authorization contained in
this part that allows you to export or reexport, under stated
conditions, items subject to the Export Administration Regulations
(EAR) that would otherwise require a license under General Prohibitions
One, Two, or Three, as indicated under one or more of the Export
Control Classification Numbers (ECCN) in the Commerce Control List
(CCL) in part 774 of the EAR. If your export or reexport is subject to
General Prohibition Six for embargoed destinations, refer to part 746
of the EAR concerning embargoed destinations to determine the
availability of any License Exception. Special commodity controls apply
to short supply items. Exceptions for items listed on the CCL as
controlled for Short Supply reasons are found in part 754 of the EAR.
If your export or reexport is subject General Prohibition Seven,
consult part 744 of the EAR. If your export or reexport is subject to
General Prohibitions Four, Five, Eight, Nine, or Ten, then no License
Exceptions apply.
(b) Certification. By using any of the License Exceptions you are
certifying that the terms, provisions, and conditions for the use of
the License Exception described in the EAR have been met. Please refer
to part 758 of the EAR for clearance of shipments and documenting the
use of License Exceptions.
(c) License Exception groupings and symbols. License Exceptions are
grouped together; each grouping bears a three letter symbol that will
be used for export clearance purposes (see paragraph (d) of this
section). Additionally, each License Exception bears a separate
designator, of three or four letters, for convenience in distinguishing
between License Exceptions and for recordkeeping purposes.
(d) Shipper's Export Declaration. (1) Clearing exports under
License Exceptions. You must enter on any required Shipper's Export
Declaration (SED) the letter code (e.g., LST, TMP) of the grouping of
License Exceptions under which you are exporting. In the case of
License Exceptions available under LST, except License Exception TSR
(Technology and Software under Restriction), the ECCN of the item being
exported must also be entered. Please refer to Sec. 758.3 of the EAR
for the use of SEDs.
(2) Clearing exports when no license is required (NLR). Certain
items are listed on the CCL but do not require a license to certain
destinations under General Prohibitions One, (Exports and Reexports in
the Form Received), Two (Parts and Components Reexports), or Three
(Foreign Produced Direct Product Reexports) (Sec. 732.6 (b)(1), (b)(2),
or (b)(3) of the EAR). (You will have determined this by consulting the
Country Chart and finding no ``X'' in the box(es) at the
intersection(s) of your country of destination and the column headings
assigned to your item by the CCL.) If General Prohibitions Four through
Ten (Sec. 732.6 (b)(4) through (b)(10) of the EAR) also do not apply,
you must clear exports of such items by entering the symbol ``NLR'' in
the appropriate place on the Shippers Export Declaration. The term
``NLR'' represents exports of listed items when no license is required.
Such exports do not require that you qualify for a License Exception.
(e) Destination Control Statement. You may be required to enter an
appropriate Destination Control Statement on commercial documents in
accordance with the Destination Control Statement requirements of
Sec. 758.5 of the EAR.
(f) Recordkeeping. Records of transactions involving exports under
any of the License Exceptions must be maintained in accordance with the
recordkeeping requirements of part 762 of the EAR.
Sec. 740.2 Restrictions on all License Exceptions.
(a) You may not use any License Exception if any one or more of the
following apply:
(1) Your authorization to use a License Exception has been
suspended or revoked, or your intended export does not qualify for a
License Exception.
(2) The export is contrary to a Denial Order. See part 764 of the
EAR for a description of Denial Orders.
(3) You know that the item will be reexported and such reexport is
subject to one of the ten General Prohibitions, is not eligible for a
License Exception, and has not been authorized by BXA.
(4) You know that the export will be used for certain end-uses or
is for certain end-users as provided and prohibited in part 744 of the
EAR.
(5) The item is for surreptitious interception of wire or oral
communications controlled under ECCN 5A980, unless you are a U.S.
Government agency (see Sec. 740.6(b)(2)(ii) of this part, Governments
(GOVT)).
(6) The commodity you are shipping is a specially designed crime
control and detection instrument or equipment as described in
Sec. 742.7 of the EAR and you are not shipping to Iceland, New Zealand,
or countries listed in Country Group A:1 (see Supplement No. 1 to part
740), unless the shipment is authorized under License Exception BAG,
Sec. 740.9(e) of this part (shotguns and shotgun shells).
(b) All License Exceptions are subject to revision, suspension, or
revocation, in whole or in part, without notice. It may be necessary
for BXA to stop a shipment or an export transaction at any stage of its
progress, e.g., in order to prevent an unauthorized export or reexport.
If a shipment is already en route, it may be further necessary to order
the return or unloading of the shipment at any port of call.
Sec. 740.3 License Exceptions based on the Commerce Control List
(LST).
These License Exceptions are listed on the CCL. Each is designated
by a three-letter symbol that appears both in the paragraph of this
section describing its terms and on the CCL. All list-based License
Exceptions use the symbol ``LST'' on shipping documentation for export
clearance purposes.
(a) Shipments of Limited Value (LVS). (1) Scope. License Exception
LVS authorizes the export and reexport in a single shipment of eligible
commodities as identified by ``LVS--$(value limit)'' on the CCL.
(2) Eligible Destinations. This License Exception is available for
all destinations in Country Group B (see
[[Page 12769]]
Supplement No. 1 to part 740), provided that the net value of the
commodities included in the same order and controlled under the same
ECCN entry on the CCL does not exceed the amount specified in the LVS
paragraph for that entry.
(3) Definitions. (i) Order. The term ``order'' as used in this
Sec. 740.3 means a communication from a person in a foreign country, or
that person's representative, expressing an intent to import
commodities from the exporter. Although all of the details of the order
need not be finally determined at the time of export, terms relating to
the kinds and quantities of the commodities to be exported, as well as
the selling prices of these commodities, must be finalized before the
goods can be exported under License Exception LVS.
(ii) Net value: for LVS shipments. The actual selling price of the
commodities that are included in the same order and are controlled
under the same entry on the CCL, less shipping charges, or the current
market price of the commodities to the same type of purchaser in the
United States, whichever is the larger. In determining the actual
selling price or the current market price of the commodity, the value
of containers in which the commodity is being exported may be excluded.
The value for LVS purposes is that of the controlled commodity that is
being exported, and may not be reduced by subtracting the value of any
content that would not, if shipped separately, be subject to licensing.
Where the total value of the containers and their contents must be
shown on Shipper's Export Declarations under one Schedule B Number, the
exporter, in effecting a shipment under this License Exception, must
indicate the ``net value'' of the contained commodity immediately below
the description of the commodity.
(iii) Single shipment. All commodities moving at the same time from
one exporter to one consignee or intermediate consignee on the same
exporting carrier even though these commodities will be forwarded to
one or more ultimate consignees. Commodities being transported in this
manner will be treated as a single shipment even if the commodities
represent more than one order or are in separate containers.
(4) Additional eligibility requirements and restrictions. (i)
Eligible orders. To be eligible for this License Exception, orders must
meet the following criteria:
(A) Orders must not exceed the applicable ``LVS'' dollar value
limits. An order is eligible for shipment under LVS when the ``net
value'' of the commodities controlled under the same entry on the CCL
does not exceed the amount specified in the ``LVS'' paragraph for that
entry. An LVS shipment may include more than one eligible order because
LVS eligibility is based on the ``net value'' of the commodities in
each order, instead of the ``net value'' of the commodities in the
shipment.
(B) Orders may not be split to meet the applicable LVS dollar
limits. An order that exceeds the applicable LVS dollar value limit may
not be misrepresented as two or more orders, or split among two or more
shipments, to give the appearance of meeting the applicable LVS dollar
value limit. However an order that meets all the LVS eligibility
requirements, including the applicable LVS dollar value limit, may be
split among two or more shipments.
(C) Orders must be legitimate. Exporters and consignees may not,
either collectively or individually, structure or adjust orders to meet
the applicable LVS dollar value limits.
(ii) Restriction on annual value of LVS orders. The total value of
exports per calendar year to the same ultimate or intermediate
consignee of commodities classified under a single ECCN may not exceed
12 times the LVS value limit for that ECCN. This annual value limit
applies to shipments to the same ultimate consignee even though the
shipments are made through more than one intermediate consignee. There
is no restriction on the number of orders that may be included in a
shipment, except that the annual value limit per ECCN must not be
exceeded.
(iii) Orders where two or more LVS dollar value limits apply. An
order may include commodities that are controlled under more than one
entry on the CCL. In this case, the net value of the entire order may
exceed the LVS dollar value for any single entry on the CCL. However,
the net value of the commodities controlled under each ECCN entry shall
not exceed the LVS dollar value limit specified for that entry.
Example to paragraph (iii): An order includes commodities valued at
$8,000. The order consists of commodities controlled under two ECCN
entries, each having an LVS value limit of $5000. Commodities in the
order controlled under one ECCN are valued at $3,500 while those
controlled under the other ECCN are valued at $4,500. Since the net
value of the commodities controlled under each entry falls within the
LVS dollar value limits applicable to that entry, the order may be
shipped under this License Exception.
(iv) Prohibition against evasion of license requirements. Any
activity involving the use of this License Exception to evade license
requirements is prohibited. Such devices include, but are not limited
to, the splitting or structuring of orders to meet applicable LVS
dollar value limits, as prohibited by paragraphs (a)(4)(i) (B) and (C)
of this section.
(5) Reexports. Commodities may be reexported under this License
Exception, provided that they could be exported from the United States
to the new country of destination under LVS.
(b) Shipments to Country Group B countries (GBS). License Exception
GBS authorizes exports and reexports to Country Group B (see Supplement
No. 1 to part 740) of those commodities controlled for national
security reasons and identified by ``GBS--Yes'' on the CCL.
(c) Civil end-users (CIV). (1) Scope. License Exception CIV
authorizes exports and reexports of national security controlled items
identified by ``CIV--Yes'' on the CCL only to civil end-users for civil
end-uses in Country Group D:1. (See Supplement No. 1 to part 740.) CIV
may not be used for exports and reexports to military end-users or to
known military uses. Such exports and reexports will continue to
require a license. In addition to conventional military activities,
military uses include any proliferation activities described and
prohibited by part 744 of the EAR. A license is also required for
transfer to military end-users or end-uses in eligible countries of
items exported under CIV.
(d) Technology and software under restriction (TSR). (1) Scope.
License Exception TSR permits exports and reexports of technology and
software subject to national security controls and identified by
``TSR--Yes'' in entries on the CCL only to the destinations in Country
Group B. (See Supplement No. 1 to part 740.) A written assurance is
required from the consignee before exporting under this License
Exception.
(i) Required assurance for export of technology. You may not export
or reexport technology under this License Exception until you have
received from the importer a written assurance that, without a BXA
license or License Exception, the importer will not:
(A) Reexport or release the technology to a national of a country
in Country Groups D:1 or E:2; or
(B) Export to Country Groups D:1 or E:2 the direct product of the
technology, if such foreign produced direct product is subject to
national security controls as identified on the CCL (See General
Prohibition Three, Sec. 736.2(b)(3) of the EAR); or
[[Page 12770]]
(C) If the direct product of the technology is a complete plant or
any major component of a plant, export to Country Groups D:1 or E:2 the
direct product of the technology, if such foreign produced direct
product is subject to national security controls as identified on the
CCL or is subject to State Department controls under the U.S. Munitions
List (22 CFR part 121).
(ii) Required assurance for export of software. You may not export
or reexport software under this License Exception until you have
received from the importer a written assurance that, without a BXA
license or License Exception, the importer will neither:
(A) Reexport or release the software or the source code for the
software to a national of a country in Country Groups D:1 or E:2; nor
(B) Export to Country Groups D:1 or E:2 the direct product of the
software, if such foreign produced direct product is subject to
national security controls as identified on the CCL. (See General
Prohibition Three, Sec. 736.2(b)(3) of the EAR).
(iii) Form of written assurance. The required assurance may be made
in the form of a letter or any other written communication from the
importer, or the assurance may be incorporated into a licensing
agreement that specifically includes the assurances. An assurance
included in a licensing agreement is acceptable only if the agreement
specifies that the assurance will be honored even after the expiration
date of the licensing agreement. If such a written assurance is not
received, License Exception TSR is not applicable and a license is
required. The license application must include a statement explaining
why assurances could not be obtained.
(iv) Other License Exceptions. The requirements in this License
Exception do not apply to the export of technology or software under
other License Exceptions, or to the export of technology or software
included in an application for the foreign filing of a patent, provided
the filing is in accordance with the regulations of the U.S. Patent
Office.
(2) Reserved.
(e) Computers (CTP). (1) Scope. License Exception CTP authorizes
exports and reexports of computers and specially designed components
therefor, exported or reexported separately or as part of a system, and
related equipment therefor when exported or reexported with these
computers as part of a system, for consumption in Computer Tier
countries as provided by this section. You may not use this License
Exception to export or reexport items that you know will be used to
enhance the CTP beyond the eligibility limit allowed to your country of
destination. When evaluating your computer to determine License
Exception CTP eligibility, use the CTP parameter to the exclusion of
other technical parameters for computers classified under ECCN 4A003,
except of parameters specified as Missile Technology (MT) concerns,
4A003.e (equipment performing analog-to-digital conversions exceeding
the limits in ECCN 3A001.a.5), and graphic accelerators or graphic
coprocessors exceeding a ``3-D vector rate'' of 10,000,000. This
License Exception does not authorize export or reexport of such graphic
accelerators or coprocessors, or of computers controlled for MT
reasons.
(2) Computer Tier 1. (i) Eligible countries. The countries that are
eligible to receive exports and reexports under this License Exception
are Australia, Austria, Belgium, Denmark, Finland, France, Germany,
Greece, the Holy See, Iceland, Ireland, Italy, Japan, Liechtenstein,
Luxembourg, Mexico, Monaco, Netherlands, New Zealand, Norway, Portugal,
San Marino, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
(ii) Eligible Computers. The computers eligible for License
Exception CTP are those with a CTP greater than 2,000 MTOPS.
(3) Computer Tier 2. (i) Eligible countries. The countries that are
eligible to receive exports under this License Exception include
Antigua and Barbuda, Argentina, Bahamas, Barbados, Bangladesh, Belize,
Benin, Bhutan, Bolivia, Botswana, Brazil, Brunei, Burkina Faso, Burma,
Burundi, Cambodia, Cameroon, Cape Verde, Central Africa, Chad, Chile,
Colombia, Congo, Costa Rica, Cote d'Ivoire, Cyprus, Czech Republic,
Dominica, Dominican Republic, Ecuador, El Salvador, Equatorial Guinea,
Eritrea, Ethiopia, Fiji, Gabon, Gambia (The), Ghana, Grenada,
Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong,
Hungary, Indonesia, Jamaica, Kenya, Kiribati, Korea (Republic of),
Laos, Lesotho, Liberia, Madagascar, Malawi, Malaysia, Maldives, Mali,
Malta, Marshall Islands, Mauritius, Micronesia (Federated States of),
Mozambique, Namibia, Nauru, Nepal, Nicaragua, Niger, Nigeria, Palau,
Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Rwanda,
St. Kitts & Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome &
Principe, Senegal, Seychelles, Sierra Leone, Singapore, Slovak
Republic, Slovenia, Solomon Islands, Somalia, South Africa, Sri Lanka,
Surinam, Swaziland, Taiwan, Tanzania, Togo, Tonga, Thailand, Trinidad
and Tobago, Tuvalu, Uganda, Uruguay, Venezuela, Western Sahara, Western
Samoa, Zaire, Zambia, and Zimbabwe.
(ii) Eligible computers. The computers eligible for License
Exception CTP are those having a Composite Theoretical Performance
(CTP) greater than 2000, but equal to or less than 10,000 Millions of
Theoretical Operations Per Second (MTOPS).
(4) Computer Tier 3. (i) Eligible countries. The countries that are
eligible to receive exports and reexports under this License Exception
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia,
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina,<SUP>1 Bulgaria,
China (People's Republic of), Comoros, Croatia,<SUP>2 Djibouti, Egypt,
Estonia, Georgia, India, Israel, Jordan, Kazakhstan, Kuwait,
Kyrgyzstan, Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav
Republic of), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan,
Qatar, Romania, Russia, Saudi Arabia, Serbia & Montenegro, Tajikistan,
Tunisia, Turkmenistan, Ukraine, United Arab Emirates, Uzbekistan,
Vanuatu, Vietnam, and Yemen.
\1\ Except as provided in 31 CFR part 585.
\2\ Except as provided in 31 CFR part 585.
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(ii) Eligible computers. The computers eligible for License
Exception CTP are those having a Composite Theoretical Performance
(CTP) greater than 2,000 Millions of Theoretical Operations Per Second
(MTOPS), but less than or equal to 7,000 MTOPS.
(iii) Eligible exports. Only exports and reexports to permitted
end-users and end-uses located in countries in Computer Tier 3. License
Exception CTP does not authorize exports and reexports to Computer Tier
3 for military end-users and end-uses and nuclear, chemical,
biological, or missile end-users and end-uses defined in part 744 of
the EAR. Exports and reexports under this License Exception may not be
made to known military end-users or to known military end-uses or known
proliferation end-uses or end-users defined in part 744 of the EAR.
Such exports and reexports will continue to require a license and will
be considered on a case-by-case basis. Retransfers to military end-
users or end-uses and defined proliferation end-users and end-uses in
eligible countries are strictly prohibited without prior authorization.
(5) Restrictions. (i) Computers eligible for License Exception CTP
may not be accessed either physically or computationally by nationals
of Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria, except that
commercial
[[Page 12771]]
consignees described in Sec. 742.12 of the EAR are prohibited only from
giving such nationals user-accessible programmability.
(ii) Computers, software and specially designed technology eligible
for License Exception CTP may not be reexported/retransferred without
prior authorization from BXA i.e., a license, a permissive reexport,
another License Exception, or ``No License Required''. This restriction
must be conveyed to the consignee, via the Destination Control
Statement, see Sec. 758.5 of the EAR.
(6) Recordkeeping requirements. In addition to the recordkeeping
requirements in part 762 of the EAR, you must keep records of each
export under License Exception CTP. These records will be made
available to the U.S. Government on request. The records must include
the following information:
(i) Date of shipment;
(ii) Name and address of the end-user and each intermediate
consignee;
(iii) CTP of each computer in shipment;
(iv) Volume of computers in shipment;
(v) Dollar value of shipment; and
(vi) End-use.
Sec. 740.4 Temporary imports, exports, and reexports (TMP).
These License Exceptions authorize various temporary exports and
reexports (TEMP); exports and reexports of items temporarily in the
United States (TUS); and exports and reexports of beta test software
(BETA). License Exceptions in Sec. 740.4 of this part use the symbol
``TMP'' for export clearance purposes.
(a) Temporary exports (TEMP). (1) Scope. You may export and
reexport commodities and software for temporary use abroad (including
use in international waters) subject to the conditions and exclusions
described in paragraph (a)(4) of this section. Commodities and software
shipped under this License Exception must be returned to the country
from which they were exported as soon as practicable but, except in
circumstances described in this section, no later than one year from
the date of export. This requirement does not apply if the commodities
and software are consumed or destroyed in the normal course of
authorized temporary use abroad or an extension or other disposition is
permitted by the EAR or in writing by BXA.
(2) Eligible commodities and software. The following commodities
and software are eligible to be shipped under this License Exception:
(i) Tools of trade. Usual and reasonable kinds and quantities of
commodities and software for use by employees of the exporter in a
lawful enterprise or undertaking of the exporter. Eligible commodities
and software may include, but are not limited to, such equipment as is
necessary to commission or service goods, provided that the equipment
is appropriate for this purpose and that all goods to be commissioned
or serviced are of foreign origin, or if subject to the EAR, have been
legally exported or reexported. The commodities and software must
remain under the effective control of the exporter or the exporter's
employee. The shipment of commodities and software may accompany the
individual departing from the United States or may be shipped
unaccompanied within one month before the individual's departure from
the United States, or at any time after departure. No tools of the
trade may be taken to Country Group E:2, and only equipment necessary
to commission or service goods may be taken as tools of trade to
Country Group D:1. (See Supplement No. 1 to part 740.)
(ii) Kits consisting of replacement parts. Kits consisting of
replacement parts may be exported or reexported under this section to
all destinations, except Country Group E:2 (see Supplement No. 1 to
part 740), provided that:
(A) The parts would qualify for shipment under paragraph (c) of
this section if exported as one-for-one replacements;
(B) The kits remain under effective control of the exporter or an
employee of the exporter; and
(C) All parts in the kit are returned, except that one-for-one
replacements may be made in accordance with the requirements of License
Exception RPL and the defective parts returned (see PTS, Sec. 740.5(a)
of this part).
(iii) Exhibition and demonstration in Country Group B. Commodities
and software for exhibition or demonstration in Country Group B (see
Supplement No. 1 to part 740) may be exported or reexported under this
provision provided that the exporter maintains ownership of the
commodities and software while they are abroad and provided that the
exporter, an employee of the exporter, or the exporter's designated
sales representative retains effective control over the commodities and
software while they are abroad. The commodities and software may not be
used for their intended purpose while abroad, except to the minimum
extent required for effective demonstration. The commodities and
software may not be exhibited or demonstrated at any one site more than
120 days after installation and debugging, unless authorized by BXA.
However, before or after an exhibition or demonstration, pending
movement to another site, return to the United States or the foreign
reexporter, or BXA approval for other disposition, the commodities and
software may be placed in a bonded warehouse or a storage facility
provided that the exporter retains effective control over their
disposition. The export documentation for this type of transaction must
show the U.S. exporter as ultimate consignee, in care of the person who
will have control over the commodities and software abroad.
(iv) Inspection and calibration. Commodities to be inspected,
tested, calibrated or repaired abroad.
(v) Containers. Containers for which another License Exception is
not available and that are necessary for export of commodities.
However, this License Exception does not authorize the export of the
container's contents, which, if not exempt from licensing, must be
separately authorized for export under either a License Exception or a
license.
(vi) Broadcast material. (A) Video tape containing program material
recorded in the country of export to be publicly broadcast in another
country.
(B) Blank video tape (raw stock) for use in recording program
material abroad.
(vii) Assembly in Mexico. Commodities to be exported to Mexico
under Customs entries that require return to the United States after
processing, assembly, or incorporation into end products by companies,
factories, or facilities participating in Mexico's in-bond
industrialization program (Maquilladora), provided that all resulting
end-products (or the commodities themselves) are returned to the United
States.
(viii) News media. (A) Commodities necessary for news-gathering
purposes (and software necessary to use such commodities) may accompany
``accredited'' news media personnel (i.e., persons with credentials
from a news gathering or reporting firm) to Country Groups D:1 or E:2
(see Supplement No. 1 to part 740) if the commodities:
(1) Are retained under ``effective control'' of the exporting news
gathering firm;
(2) Remain in the physical possession of the news media personnel.
The term physical possession for purposes of this paragraph
(a)(2)(viii), news media, is defined as maintaining effective measures
to prevent unauthorized access (e.g., securing equipment in
[[Page 12772]]
locked facilities or hiring security guards to protect the equipment);
and
(3) Are removed with the news media personnel at the end of the
trip.
(B) When exporting under this paragraph (a)(2)(viii) from the
United States, the exporter must send a copy of the packing list or
similar identification of the exported commodities, to: U.S. Department
of Commerce, Bureau of Export Administration, Office of Enforcement
Support, Room H4069, 14th Street and Constitution Avenue, N.W.,
Washington, DC 20230, or any of its field offices, specifying the
destination and estimated dates of departure and return. The Office of
Export Enforcement (OEE) may spot check returns to assure that this
License Exception is being used properly.
(C) Commodities or software necessary for news-gathering purposes
that accompany news media personnel to all other destinations shall be
exported or reexported under paragraph (a)(2)(i), tools of trade, of
this section if owned by the news gathering firm, or if they are
personal property of the individual news media personnel. Note that
paragraphs (a)(2)(i), tools of trade and (a)(2)(viii), news media, of
this section do not preclude independent ``accredited'' contract
personnel, who are under control of news gathering firms while on
assignment, from utilizing these provisions, provided that the news
gathering firm designate an employee of the contract firm to be
responsible for the equipment.)
(3) Special restrictions. (i) Destinations. (A) No commodity or
software may be exported under this License Exception to Country Group
E:2 (see Supplement No. 1 to part 740) except as permitted by paragraph
(a)(2)(viii), news media, of this section;
(B) No commodity or software may be exported under this License
Exception to Country Group D:1 (see Supplement No. 1 to part 740)
except:
(1) Commodities and software exported under paragraph (a)(2)(viii),
news media, of this section;
(2) Commodities and software exported under paragraph (a)(2)(i),
tools of trade, of this section; and
(3) Commodities exported as kits of replacement parts, consistent
with the requirements of paragraph (a)(2)(ii) of this section.
(C) These destination restrictions apply to temporary exports to
and for use on any vessel, aircraft or territory under ownership,
control, lease, or charter by any country in Country Group D:1 or E:2,
or any national thereof. (See Supplement No. 1 to part 740.)
(ii) Ineligible commodities or software. Commodities or software
that will be used outside of Country Group A:4 (Nuclear Suppliers
Group) (see Supplement No. 1 to part 740) either directly or indirectly
in any sensitive nuclear activity as described in Sec. 744.2 of the EAR
may not be exported or reexported to any destination under this License
Exception.
(iii) Use or disposition. No commodity or software may be exported
or reexported under this License Exception if:
(A) An order to acquire the commodity or software has been received
before shipment;
(B) The exporter has prior knowledge that the commodity or software
will stay abroad beyond the terms of this License Exception; or
(C) The commodity or software is for lease or rental abroad.
(4) Return or disposal of commodities and software. All commodities
and software exported or reexported under this License Exception must,
if not consumed or destroyed in the normal course of authorized
temporary use abroad, be returned as soon as practicable but no later
than one year after the date of export, to the United States or other
country from which the commodities and software were exported under
this License Exception, or shall be disposed of or retained in one of
the following ways:
(i) Permanent export or reexport. If the exporter or the reexporter
wishes to sell or otherwise dispose of the commodities or software
abroad, except as permitted by this or other applicable License
Exception, the exporter must request authorization by submitting a
license application to BXA at the address listed in part 748 of the
EAR. (See part 748 of the EAR for more information on license
applications.) The request should comply with all applicable provisions
of the EAR covering export directly from the United States to the
proposed destination. The request must also be supported by any
documents that would be required in support of an application for
export license for shipment of the same commodities or software
directly from the United States to the proposed destination. BXA will
advise the exporter of its decision.
(ii) Use of a license. An outstanding license may also be used to
dispose of commodities or software covered by the License Exception
described in this section, provided that the outstanding license
authorizes direct shipment of the same commodity or software to the
same new ultimate consignee in the new country of destination.
(iii) Authorization to retain abroad beyond one year. If the
exporter wishes to retain a commodity or software abroad beyond the 12
months authorized by paragraph (a) of this section, the exporter must
request authorization by submitting Form BXA-748P, Multipurpose
Application, 90 days prior to the expiration of the 12 month period.
The request must be sent to BXA at the address listed in part 748 of
the EAR and should include the name and address of the exporter, the
date the commodities or software were exported, a brief product
description, and the justification for the extension. If BXA approves
the extension request, the exporter will receive authorization for a
one-time extension not to exceed six months. BXA normally will not
allow an extension for commodities or software that have been abroad
more than 12 months, nor will a second six month extension be
authorized. Any request for retaining the commodities or software
abroad for a period exceeding 18 months must be made in accordance with
the requirements of paragraph (a)(4)(i) of this section.
(5) Reexports. Commodities and software legally exported from the
United States may be reexported to a new country(ies) of destination
under this License Exception provided its terms and conditions are met
and the commodities and software are returned to the country from which
the reexport occurred.
(b) Exports of items temporarily in the United States (TUS).
Scope. License Exception TUS, describes the conditions for
exporting foreign-origin items temporarily in the United States.
Specifically, this License Exception includes the export of items
moving in transit through the United States, imported for display at a
U.S. exhibition or trade fair, returned because unwanted, or returned
because refused entry.
Note 1 to paragraph (b) of this section: A commodity withdrawn
from a bonded warehouse in the United States under a ``withdrawal
for export'' customs entry is considered as ``moving in transit''.
It is not considered as ``moving in transit'' if it is withdrawn
from a bonded warehouse under any other type of customs entry or if
its transit has been broken for a processing operation, regardless
of the type of customs entry.
Note 2 to paragraph (b) of this section: Items shipped on board
a vessel or aircraft and passing through the United States from one
foreign country to another may be exported without a license
provided that (a) while passing in transit through the United
States, they have not been unladen from the
[[Page 12773]]
vessel or aircraft on which they entered, and (b) they are not
originally manifested to the United States.)
(1) Items moving in transit through the United States. Subject to
the following conditions, this License Exception authorizes export of
items moving in transit through the United States under a
Transportation and Exportation (T. & E.) customs entry or an Immediate
Exportation (I.E.) customs entry made at a U.S. Customs Office.
(i) Items controlled for national security, nuclear proliferation,
missile technology, or chemical and biological weapons reasons may not
be exported to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 to
part 740), respectively, under License Exception TUS.
(ii) Items may not be exported to Country Group E:2 under this
License Exception.
(iii) The following may not be exported in transit from the United
States under License Exception TUS:
(A) Commodities shipped to the United States under an International
Import Certificate, Form BXA-645P;
(B) Chemicals controlled under ECCN 1C350; or
(C) Horses for export by sea (refer to short supply controls in
part 754 of the EAR).
(iv) The provisions of this License Exception apply to all
shipments from Canada moving in transit through the United States to
any foreign destination, regardless of the nature of the commodities or
software or their origin. For such shipments the customs office at the
U.S. port of export will require a copy of Form B-13, Canadian Customs
Entry, certified or stamped by Canadian customs authorities, except
where the shipment is valued at less than $50.00. (In transit shipments
originating in Canada that are exempt from U.S. licensing, or made
under a U.S. license or applicable U.S. License Exception other than
TUS do not require this form.) The commodity or software description,
quantity, ultimate consignee, country of ultimate destination, and all
other pertinent details of the shipment must be the same on a required
Form B-13, as on Commerce Form 7513,<SUP>3 or when Form 7513 is not
required, must be the same as on Customs Form 7512. When there is a
material difference, a corrected Form B-13 authorizing the shipment is
required.
\3\ The complete names of these forms are: Commerce Form 7513,
``Shipper's Export Declaration for Intransit Goods''; Customs Form
7512, ``Transportation Entry and Manifest of Goods Subject to
Customs Inspection and Permit.''
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(2) Items imported for display at U.S. exhibitions or trade fairs.
Subject to the following conditions, License Exception TUS authorizes
the export of items that were imported into the United States for
display at an exhibition or trade fair and were either entered under
bond or permitted temporary free import under bond providing for their
export and are being exported in accordance with the terms of that
bond.
(i) Items may be exported to the country from which imported into
the United States. However, items originally imported from Cuba or
North Korea may not be exported unless the U.S. Government had licensed
the import from that country.
(ii) Items may be exported to any destination other than the
country from which imported except:
(A) Items imported into the United States under an International
Import Certificate;
(B) Exports to Country Group E:2 (see Supplement No. 1 to part
740); or
(C) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 1
to part 740) of items controlled for national security, missile
technology, chemical and biological weapons reasons, or nuclear
proliferation, respectively.
(3) Return of unwanted shipments. A foreign-origin item may be
returned under this License Exception to the country from which it was
imported if its characteristics and capabilities have not been enhanced
while in the United States. No foreign-origin items may be returned to
Cuba, Libya, or North Korea.
(4) Return of shipments refused entry. Shipments of items refused
entry by the U.S. Customs Service, the Food and Drug Administration, or
other U.S. Government agency may be returned to the country of origin,
except to:
(i) A destination in Cuba, Libya, or North Korea; or
(ii) A destination from which the shipment has been refused entry
because of the Foreign Assets Control Regulations of the Treasury
Department, unless such return is licensed or otherwise authorized by
the Treasury Department, Office of Foreign Assets Control (31 CFR part
500).
(c) Exports of beta test software (BETA). (1) Scope. This License
Exception authorizes exports and reexports to eligible countries of
beta test software intended for distribution to the general public.
(2) Eligible countries. The countries that are eligible to receive
exports and reexports under License Exception BETA are all countries
except those Country Groups E:2.
(3) Eligible software. All software that is controlled by the CCL
(part 774 of the EAR), and under Commerce licensing jurisdiction, is
eligible for export and reexport under this License Exception, subject
to the restrictions in this section.
(4) Conditions for use. Any beta test software program may be
exported or reexported to eligible countries if all of the conditions
under this section are met:
(i) The software producer intends to market the software to the
general public after completion of the beta testing, as described in
the General Software Note found in Supplement No. 2 to part 774 of the
EAR;
(ii) The software producer provides the software to the testing
consignee free-of-charge or at a price that does not exceed the cost of
reproduction and distribution; and
(iii) The software is designed for installation by the end-user
without further substantial support from the supplier.
(5) Importer Statement. Prior to shipping any eligible software
under BETA, the exporter or reexporter must obtain the following
statement from the testing consignee, which may be included in a
contract, non-disclosure agreement, or other document that identifies
the importer, the software to be exported, the country of destination,
and the testing consignee.
We certify that this beta test software will only be used for
beta testing purposes, and will not be rented, leased, sold,
sublicensed, assigned, or otherwise transferred. Further, we certify
that we will not transfer or export any product, process, or service
that is the direct product of the beta test software.
(6) Use limitations. Only testing consignees that provide the
importer statement required by paragraph (c)(5) of this section may
execute any software received under this License Exception.
(7) Return or disposal of software. All beta test software exported
under this License Exception must be destroyed abroad or returned to
the exporter within 30 days of the end of the beta test period as
defined by the software producer or, if the software producer does not
define a test period, within 30 days of completion of the consignee's
role in the test. Among other methods, this requirement may be
satisfied by a software module that will destroy the software and all
its copies at or before the end of the beta test period.
Sec. 740.5 Servicing and replacement of parts and equipment (RPL).
These License Exceptions authorize exports and reexports associated
with one-for-one replacement of parts (PTS) or servicing and
replacement of equipment (SNR). The symbol ``RPL'' is
[[Page 12774]]
used on shipping documentation for export clearance purposes.
(a) Parts (PTS). (1) Scope. This License Exception authorizes the
export and reexport of one-for-one replacement parts for previously
exported equipment.
(2) One-for-one replacement of parts. (i) The term ``replacement
parts'' as used in this section means parts needed for the immediate
repair of equipment, including replacement of defective or worn parts.
(It includes subassemblies but does not include test instruments or
operating supplies). (The term ``subassembly'' means a number of
components assembled to perform a specific function or functions within
a commodity. One example would be printed circuit boards with
components mounted thereon. This definition does not include major
subsystems such as those composed of a number of subassemblies.) Items
that improve or change the basic design characteristics, e.g., as to
accuracy, capability, performance or productivity, of the equipment
upon which they are installed, are not deemed to be replacement parts.
For kits consisting of replacement parts, consult Sec. 740.4(a)(2)(ii)
of this part (TEMP).
(ii) Parts may be exported only to replace, on a one-for-one basis,
parts contained in commodities that were: legally exported from the
United States; legally reexported; or made in a foreign country
incorporating authorized U.S.-origin parts. The conditions of the
original U.S. authorization must not have been violated. Accordingly,
the export of replacement parts may be made only by the party who
originally exported or reexported the commodity to be repaired, or by a
party that has confirmed the appropriate authority for the original
transaction.
(iii) The parts to be replaced must either be destroyed abroad or
returned promptly to the person who supplied the replacement parts, or
to a foreign firm that is under the effective control of that person.
(3) Exclusions. (i) No replacement parts may be exported under this
License Exception to repair a commodity exported under a license if
that license included a condition that any subsequent replacement parts
must be exported only under a license.
(ii) No parts may be exported under this License Exception to be
held abroad as spare parts or equipment for future use. Replacement
parts may be exported to replace spare parts that were authorized to
accompany the export of equipment, as those spare parts are utilized in
the repair of the equipment. This will allow maintenance of the stock
of spares at a consistent level as parts are used.
(iii) No parts may be exported under PTS to any destination except
Iceland, New Zealand, or the countries listed in Country Group A:1 (see
Supplement No. 1 to part 740) if the item is to be incorporated into or
used in nuclear weapons, nuclear explosive devices, nuclear testing
related to activities described in Sec. 744.2(a) of the EAR, the
chemical processing of irradiated special nuclear or source material,
the production of heavy water, the separation of isotopes of source and
special nuclear materials, or the fabrication of nuclear reactor fuel
containing plutonium, as described in Sec. 744.2(a) of the EAR.
(iv) No replacement parts shall be exported under this License
Exception to Cuba, Iran, Iraq, Sudan, Syria, Libya, or North Korea
(countries designated by the Secretary of State as supporting acts of
international terrorism) if the commodity to be repaired is an
``aircraft'' (as defined in part 772 of the EAR) or national security
controlled commodity.
(v) The conditions described in this paragraph (a)(3) relating to
replacement of parts do not apply to reexports to a foreign country of
parts as replacements in foreign-origin products, if at the time the
replacements are furnished, the foreign-origin product is eligible for
export to such country under any of the License Exceptions in this part
or the exceptions in Sec. 734.4(b)(2) (ii) and (iii) of the EAR.
(4) Reexports. Parts exported from the United States may be
reexported to a new country of destination, provided that the
restrictions described in paragraphs (a) (2) and (3) of this section
are met. A party reexporting U.S.-origin one-for-one replacement parts
shall ensure that the commodities being repaired were shipped to their
present location in accordance with U.S. law and continue to be legally
used, and that either before or promptly after reexport of the
replacement parts, the replaced parts are either destroyed or returned
to the United States, or to the foreign firm in Country Group B (see
Supplement No. 1 to part 740) that shipped the replacement parts.
(b) Servicing and Replacement (SNR). (1) Scope. This License
Exception SNR authorizes the export and reexport of items that were
returned to the United States for servicing and the replacement of
defective or unacceptable U.S.-origin commodities and software.
(2) Commodities and software sent to a United States or foreign
party for servicing. (i) Definition. ``Servicing'' as used in this
section means inspection, testing, calibration or repair, including
overhaul and reconditioning. The servicing shall not have improved or
changed the basic characteristics, e.g., as to accuracy, capability,
performance, or productivity of the commodity or software as originally
authorized for export or reexport.
(ii) Return of serviced commodities and software. When the serviced
commodity or software is returned, it may include any replacement or
rebuilt parts necessary to its repair and may be accompanied by any
spare part, tool, accessory, or other item that was sent with it for
servicing.
(iii) Commodities and software imported from Country Group D:1
except the PRC. Commodities and software legally exported or reexported
to a consignee in Country Group D:1 (except the People's Republic of
China (PRC)) (see Supplement No. 1 to part 740) that are sent to the
United States or a foreign party for servicing may be returned under
this License Exception to the country from which it was sent, provided
that both of the following conditions are met:
(A) The exporter making the shipment is the same person or firm to
whom the original license was issued; and
(B) The end-use and the end-user of the serviced commodities or
software and other particulars of the transaction, as set forth in the
application and supporting documentation that formed the basis for
issuance of the license have not changed.
(iv) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria. No
repaired commodity or software may be exported or reexported to Cuba,
Iran, Iraq, Libya, North Korea, Sudan, or Syria under this section.
(3) Replacements for defective or unacceptable U.S.-origin
equipment.
(i) Subject to the following conditions, commodities or software
may be exported or reexported to replace defective or otherwise
unusable (e.g., erroneously supplied) items.
(A) The commodity or software to be replaced must have been
previously exported or reexported in its present form under a license
or authorization granted by BXA.
(B) No commodity or software may be exported or reexported to
replace equipment that is worn out from normal use, nor may any
commodity or software be exported to be held in stock abroad as spare
equipment for future use.
(C) The replacement item may not improve the basic characteristic,
e.g., as to accuracy, capability, performance, or productivity, of the
equipment as
[[Page 12775]]
originally approved for export or reexport under a license issued by
BXA.
(D) No shipment may be made to Cuba, Iran, Iraq, Libya, North
Korea, Sudan, or Syria, or to any other destination to replace
defective or otherwise unusable equipment owned or controlled by, or
leased or chartered to, a national of any of those countries.
(ii) Special conditions applicable to exports to Country Group B
and Country Group D:1. (See Supplement No. 1 to part 740.) In addition
to the general conditions in paragraph (b)(3)(i) of this section, the
following conditions apply to exports or reexports of replacements for
defective or unacceptable U.S.-origin commodities or software to a
destination in Country Group B or Country Group D:1:
(A) By making such an export or reexport, the exporter represents
that all the requirements of paragraph (c) of this section have been
met and undertakes to destroy or return the replaced parts as provided
in paragraph (b)(3)(ii)(C) of this section.
(B) The defective or otherwise unusable equipment must be replaced
free of charge, except for transportation and labor charges. If
exporting to the countries listed in Country Group D:1 (except the
PRC), the exporter shall replace the commodity or software within the
warranty period or within 12 months of its shipment to the ultimate
consignee in the country of destination, whichever is shorter.
(C) The commodity or software to be replaced must either be
destroyed abroad or returned to the United States, or to a foreign firm
in Country Group B that is under the effective control of the U.S.
exporter, or to the foreign firm that is providing the replacement part
or equipment. The destruction or return must be effected before, or
promptly after, the replacement item is exported from the United
States.
(D) A party reexporting replacements for defective or unacceptable
U.S.-origin equipment must ensure that the commodities or software
being replaced were shipped to their present location in accordance
with U.S. law and continue to be legally used.
Sec. 740.6 Governments and international organizations (GOV).
These Licenses Exceptions authorize exports and reexports for
international nuclear safeguards (SAFE); U.S. government agencies or
personnel, and agencies of cooperating governments (GOVT). The License
Exceptions in Sec. 740.6 of this part use the symbol ``GOV'' for export
clearance purposes.
(a) International Safeguards (SAFE). (1) Scope. You may export and
reexport commodities or software to the International Atomic Energy
Agency (IAEA) and the European Atomic Energy Community (Euratom), and
reexports by IAEA and Euratom for official international safeguard use,
as follows:
(i) Commodities or software consigned to the IAEA at its
headquarters in Vienna, or field offices in Toronto, Ontario, Canada or
Tokyo, Japan for official international safeguards use. The IAEA is an
international organization that establishes and administers safeguards
designed to ensure that special nuclear materials and other related
nuclear facilities, services, and information are not diverted from
peaceful purposes to non-peaceful purposes.
(ii) Commodities or software consigned to the Euratom Safeguards
Directorate in Luxembourg, Luxembourg for official international
safeguards use. Euratom is an international organization of European
countries with headquarters in Luxembourg. Euratom establishes and
administers safeguards designed to ensure that special nuclear
materials and other related nuclear facilities, services, and
information are not diverted from peaceful purposes to non-peaceful
purposes.
(iii) Commodities consigned to IAEA or Euratom may be reexported to
any country for IAEA or Euratom international safeguards use provided
that IAEA or Euratom maintains control of or otherwise safeguards the
commodities and returns the commodities to the locations described in
paragraphs (a)(1)(i) and (a)(1)(ii) of this section when they become
obsolete, are no longer required, or are replaced.
(iv) Commodity or software shipments may be made by commercial
companies under direct contract with IAEA or Euratom, or by Department
of Energy National Laboratories as directed by the Department of State
or the Department of Energy.
(v) The monitoring functions of IAEA and Euratom are not subject to
the restrictions on prohibited safeguarded nuclear activities described
in Sec. 744.2(a)(3) of the EAR.
(vi) When commodities or software originally consigned to IAEA or
Euratom are no longer in IAEA or Euratom official safeguards use, such
commodities may only be disposed of in accordance with the regulations
in the EAR.
(2) Exclusions. No computers with a CTP greater than 10,000 MTOPS
may be exported or reexported to countries listed in Computer Tiers 3
or 4 under License Exception SAFE. See Sec. 742.12 of the EAR for a
complete list of the countries within Computer Tiers 3 and 4.
(b) Governments (GOVT). (1) Scope. License Exception (GOVT)
authorizes exports and reexports of the items listed in paragraph
(b)(2) of this section to personnel and agencies of the U.S. Government
or agencies of cooperating governments.
(2) Eligibility. (i) Items for personal use by personnel and
agencies of the U.S. Government. License Exception GOVT is available
for items in quantities sufficient only for the personal use of members
of the U.S. Armed Forces or civilian personnel of the U.S. Government
(including U.S. representatives to public international organizations),
and their immediate families and servants. Items for personal use
include household effects, food, beverages, and other daily
necessities.
(ii) Items for official use by personnel and agencies of the U.S.
Government. This License Exception is available for items consigned to
and for the official use of any agency of the U.S. Government.
(iii) Items for official use within national territory by agencies
of cooperating governments. This License Exception is available for all
items consigned to and for the official use of any agency of a
cooperating government within the territory of any cooperating
government, except:
(A) Computers with a CTP greater than 10,000 MTOPS when destined
for Argentina, Hong Kong, South Korea, Singapore, or Taiwan;
(B) Items identified on the Commerce Control List as controlled for
missile technology (MT), chemical and biological warfare (CB), or
nuclear nonproliferation (NP) reasons; or
(C) Regional stability items controlled under Export Control
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002,
7D001, 7E001, 7E002, and 7E101, as described in Sec. 742.6(a)(1) of the
EAR.
(iv) Diplomatic and consular missions of a cooperating government.
This License Exception is available for all items consigned to and for
the official use of a diplomatic or consular mission of a cooperating
government located in any country in Country Group B (see Supplement
No. 1 to part 740), except:
(A) Computers with a CTP greater than 10,000 MTOPS when destined
for Argentina, Hong Kong, South Korea, Singapore, or Taiwan;
(B) Items identified on the Commerce Control List as controlled for
missile technology (MT), chemical and biological warfare (CB), or
nuclear nonproliferation (NP) reasons; or
[[Page 12776]]
(C) Regional stability items controlled under Export Control
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002,
7D001, 7E001, 7E002, and 7E101, as described in Sec. 742.6(a)(1) of the
EAR.
(3) Definitions. (i) ``Agency of the U.S. Government'' includes all
civilian and military departments, branches, missions, government-owned
corporations, and other agencies of the U.S. Government, but does not
include such national agencies as the American Red Cross or
international organizations in which the United States participates
such as the Organization of American States. Therefore, shipments may
not be made under this License Exception to these non-government
national or international agencies, except as provided in (b)(2)(i) of
this section for U.S. representatives to these organizations.
(ii) ``Agency of a cooperating government'' includes all civilian
and military departments, branches, missions, and other governmental
agencies of a cooperating national government. Cooperating governments
are the national governments of countries listed in Country Group A:1
(see Supplement No. 1 to part 740) and the national governments of
Argentina, Austria, Finland, Ireland, Korea (Republic of), Singapore,
Sweden, and Switzerland.
Sec. 740.7 Gift parcels and humanitarian donations (GFT).
(a) Gift parcels (GIFT). (1) Scope. This License Exception (GIFT)
authorizes exports and reexports of gift parcels by an individual
(donor) addressed to an individual, or a religious, charitable or
educational organization (donee) located in any destination for the use
of the donee or the donee's immediate family (and not for resale). The
gift parcel must be provided free of charge to the donee. However,
payment by the donee of any handling charges or of any fees levied by
the importing country (e.g., import duties, taxes, etc.) is not
considered to be a cost to the donee for purposes of this definition of
``gift parcel.'' <SUP>4
\4\ Many foreign countries permit the entry, duty-free, of gift
parcels that conform to regulations regarding contents and marking.
To secure this advantage, the sender should show the words ``U.S.A.
Gift Parcel'' on the addressee side of the package and on any
required customs declarations. Information regarding the foreign
postal regulations is available at local post offices. Senders of
gift parcels who wish information regarding import duties of a
foreign country should contact the nearest Commercial Office,
Consulate or Embassy of the country concerned.
Note to paragraph (a) of this section: A gift parcel, within the
context of this License Exception GIFT, does not include multiple
parcels exported in a single shipment for delivery to individuals
residing in a foreign country. Such multiple gift parcels, if
subject to the General Prohibitions described in Sec. 734.2(b) of
the EAR, must be licensed by BXA. (See Sec. 748.9(e) of the EAR for
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licensing of multiple gift parcels).
(2) Commodity, value and other limitations. (i) Eligible
commodities. The commodities eligible for this License Exception are as
follows:
(A) The commodity must not be controlled for chemical and
biological weapons (CB), missile technology (MT), national security
(NS), or nuclear proliferation (NP) (see Commerce Control List, part
774 of the EAR); and
(B) The commodity must be of a type and in quantities normally
given as gifts between individuals.
(1) For Cuba, the only commodities that may be included in a gift
parcel are the following items from Supplement No. 1 to part 746 of the
EAR: food, vitamins, seeds, medicines, medical supplies and devices,
hospital supplies and equipment, equipment for the handicapped,
clothing, personal hygiene items, veterinary medicines and supplies,
fishing equipment and supplies, soap-making equipment, and in addition
receive-only radio equipment for reception of commercial/civil AM/FM
and short wave publicly available frequency bands, and batteries for
such equipment.
(2) For all other destinations, eligible commodities include all
items described in paragraph (a)(2)(i)(B)(1) of this section as well as
all other items normally sent as gifts. Gold bullion, gold taels, and
gold bars are prohibited as are items intended for resale or reexport.
Example to paragraph (a) of this section. A watch or piece of
jewelry is normally sent as a gift. However, multiple watches,
either in one package or in subsequent shipments, would not qualify
for such gift parcels because the quantity exceeds that normally
given between individuals. Similarly, a sewing machine or bicycle,
within the dollar limits of this License Exception, may be an
appropriate gift. However, subsequent shipments of the same item to
the same donee would not be a gift normally given between
individuals.
(3) For purposes of paragraph (a)(2)(ii)(B) of this section,
clothing is appropriate, except that export of military wearing apparel
to Country Group D:1 or E:2 under this License Exception is
specifically prohibited, regardless of whether all distinctive U.S.
military insignia, buttons, and other markings are removed.
(ii) Import requirements. The commodities must be acceptable in
type and quantity by the recipient country for import as gifts.
Commodities exceeding the import limits may not be included in gift
parcels.
(iii) Frequency. Except for gift parcels of food to Cuba, not more
than one gift parcel may be sent from the same donor to the same donee
in any one calendar month. Parties seeking authorization to exceed this
limit due to compelling humanitarian concerns (e.g., gifts of medicine
to relatives) should submit a license application (BXA-748P) with
complete justification.
(iv) Value. The combined total domestic retail value of all
commodities included in a gift parcel may not exceed $400, except for
gift parcels to Cuba where the value of non-food items may not exceed
$200. There is no dollar value limit on food contained in a gift parcel
to Cuba.
(3) How to export gift parcels. (i) A gift parcel must be sent
directly to the donee by the individual donor, or for such donor by a
commercial or other gift-forwarding service or organization. Each gift
parcel must show, on the outside wrapper, the name and address of the
donor, as well as the name and address of the donee, regardless of
whether sent by the donor or by a forwarding service.
(ii) Each parcel must have the notation ``GIFT--Export License Not
Required'' written on the addressee side of the package and the symbol
``GFT'' written on any required customs declaration.
(b) Humanitarian donations (NEED). (1) Scope. License Exception
NEED authorizes exports by groups or organizations of donations to meet
basic human needs when those groups or organizations have experience in
maintaining a verifiable system of distribution that ensures delivery
to the intended beneficiaries.
(2) Basic human needs. Under License Exception NEED, basic human
needs are defined as those requirements essential to individual well-
being: health, food, clothing, shelter, and education. These needs are
considered to extend beyond those of an emergency nature and those that
meet direct needs for mere subsistence.
(3) Eligible donors. Eligible donors are U.S. charitable
organizations that have an established record of involvement in
donative programs and experience in maintaining and verifying a system
of distribution to ensure delivery of commodities and software to the
intended beneficiaries. Eligible
[[Page 12777]]
distribution arrangements may consist of any one or more of the
following:
(i) A permanent staff maintained in the recipient country to
monitor the receipt and distribution of the donations to the intended
beneficiaries;
(ii) Periodic spot-checks in the recipient country by members of
the exporter's staff; or
(iii) An agreement to utilize the services of a charitable
organization that has a monitoring system in place.
(4) Donations. To qualify for export under this License Exception,
the items must be provided free of charge to the beneficiary. The
payment by the beneficiary, however, of normal handling charges or fees
levied by the importing country (e.g., import duties, taxes, etc.) is
not considered to be a cost to the beneficiary for purposes of this
section.
(5) Ineligible commodities and software. The following commodities
and software are not eligible for this License Exception:
(i) Commodities and software controlled for national security,
chemical or biological weapons, and nuclear non-proliferation, missile
technology or crime control reasons (see supplement No. 1 to part 774
of the EAR);
(ii) Exports for large-scale projects of the kind associated with
comprehensive economic growth, such as dams and hydroelectric plants;
or
(iii) Exports to Cuba of medical items excluded by Sec. 746.2(a)(3)
of the EAR.
(6) Eligible items. Eligible commodities and software are those
listed in Supplement No. 2 to part 740.
(7) Additional recordkeeping requirements. In addition to the
recordkeeping requirements in part 762 of the EAR, donors must keep
records containing the following information:
(i) The donor organization's identity and past experience as an
exporter of goods to meet basic human needs;
(ii) Past and current countries to which the donative programs have
been and are being directed, with particular reference to donative
programs in embargoed destinations;
(iii) Types of projects and commodities involved in the donative
programs;
(iv) Specific class(es) of beneficiaries of particular donated
goods intended to be exported under this License Exception; and
(vi) Information concerning the source of funding for the donative
programs and the projected annual value of exports under this License
Exception.
Sec. 740.8 Technology and software--unrestricted (TSU).
(a) Operating technology and software (OTS). (1) Scope. This
License Exception permits exports and reexports of operation technology
and software. ``Operation technology'' is the minimum technology
necessary for the installation, operation, maintenance (checking), and
repair of those products that are lawfully exported or reexported under
a license, a License Exception, or NLR. The ``minimum necessary''
operation technology does not include technology for development or
production and includes use technology only to the extent required to
ensure safe and efficient use of the product. Individual entries in the
software and technology subcategories of the CCL may further restrict
the export or reexport of operation technology under this License
Exception.
(2) Provisions and Destinations. (i) Provisions. Operation software
may be exported or reexported under this License Exception provided
that both of the following conditions are met:
(A) The operation software is the minimum necessary to operate
equipment authorized for export or reexport; and
(B) The operation software is in object code.
(ii) Destinations. Operation software and technology may be
exported or reexported to any destination to which the equipment for
which it is required has been or is being legally exported or
reexported.
(b) Sales technology (STS). (1) Scope. This License Exception
authorizes exports and reexports of sales technology. ``Sales
technology'' is data supporting a prospective or actual quotation, bid,
or offer to sell, lease, or otherwise supply any item.
(2) Provisions and destinations. (i) Provisions. Sales technology
may be exported or reexported under this License Exception provided
that:
(A) The technology is a type customarily transmitted with a
prospective or actual quotation, bid, or offer in accordance with
established business practice; and
(B) Neither the export nor the reexport will disclose the detailed
design, production, or manufacture technology, or the means of
reconstruction, of either the quoted item or its product. The purpose
of this limitation is to prevent disclosure of technology so detailed
that the consignee could reduce the technology to production.
(ii) Destinations. Sales technology may be exported or reexported
to any destination.
Note: Neither this section nor its use means that the U.S.
Government intends, or is committed, to approve a license
application for any commodity, plant, software, or technology that
may be the subject of the transaction to which such quotation, bid,
or offer relates. Exporters are advised to include in any
quotations, bids, or offers, and in any contracts entered into
pursuant to such quotations, bids, or offers, a provision relieving
themselves of liability in the event that a license (when required)
is not approved by the Bureau of Export Administration.
(c) Software updates (SUD). This License Exception authorizes
exports and reexports of software updates that are intended for and are
limited to correction of errors (``fixes'' to ``bugs'') in software
lawfully exported or reexported (original software). Such software
updates may be exported or reexported only to the same consignee to
whom the original software was exported or reexported, and such
software updates may not enhance the functional capacities of the
original software. Such software updates may be exported or reexported
to any destination to which the software for which they are required
has been legally exported or reexported.
(d) General Software Note (GSN): ``mass market'' software. (1)
Scope. This License Exception authorizes exports and reexports of
``mass market'' software subject to the General Software Note (see
Supplement No. 2 to part 774 of the EAR; also referenced in this
section).<SUP>5
\5\ ``Mass market'' software may fall under the classification
of ``general use'' software for export clearance purposes. Exporters
should consult the Census Bureau FTSR for possible SED requirements.
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(2) Provisions and destinations.
(i) Destinations. This License Exception is available to all
destinations except Cuba, Iran, Libya, North Korea, Sudan, and Syria.
(ii) Provisions. This License Exception is available for software
that is generally available to the public by being:
(A) Sold from stock at retail selling points, without restriction,
by means of:
(1) Over the counter transactions;
(2) Mail order transactions; or
(3) Telephone call transactions; and
(B) Designed for installation by the user without further
substantial support by the supplier.
Sec. 740.9 Baggage (BAG).
(a) Scope. This License Exception authorizes individuals leaving
the United States and crew members of exporting carriers to take to any
destination, as personal baggage, the classes of commodities and
software described in this section.
[[Page 12778]]
(b) Eligibility. Individuals leaving the United States may export
and reexport any of the following commodities or software to any
destination or series of destinations. Crew members may export and
reexport only commodities and software described in paragraphs (b)(1)
and (b)(2) of this section to any destination.
(1) Personal effects. Usual and reasonable kinds and quantities for
personal use of wearing apparel, articles of personal adornment, toilet
articles, medicinal supplies, food, souvenirs, games, and similar
personal effects, and their containers.
(2) Household effects. Usual and reasonable kinds and quantities
for personal use of furniture, household effects, household
furnishings, and their containers.
(3) Vehicles. Usual and reasonable kinds and quantities of
vehicles, such as passenger cars, station wagons, trucks, trailers,
motorcycles, bicycles, tricycles, perambulators, and their containers.
(4) Tools of trade. Usual and reasonable kinds and quantities of
tools, instruments, or equipment and their containers for use in the
trade, occupation, employment, vocation, or hobby of the traveler.
(c) Limits on eligibility. The export of any commodity or software
may be limited or prohibited, if the kind or quantity is in excess of
the limits described in this section. In addition, the commodities or
software must be:
(1) Owned by the individuals (or by members of their immediate
families) or by crew members of exporting carriers on the dates they
depart from the United States;
(2) Intended for and necessary and appropriate for the use of the
individuals or members of their immediate families, or by the crew
members of exporting carriers;
(3) Not intended for sale; and
(4) Not exported under a bill of lading as cargo if exported by
crew members.
(d) Special provision: unaccompanied baggage. Individuals departing
the United States may ship unaccompanied baggage, which is baggage sent
from the United States on a carrier other than that on which an
individual departs. Crew members of exporting carriers may not ship
unaccompanied baggage. Unaccompanied shipments under this License
Exception shall be clearly marked ``BAGGAGE.'' Shipments of
unaccompanied baggage may be made at the time of, or within a
reasonable time before or after departure of the consignee or owner
from the United States. Personal baggage controlled for chemical and
biological weapons (CB), missile technology (MT), national security
(NS) or nuclear nonproliferation (NP) must be shipped within 3 months
before or after the month in which the consignee or owner departs the
United States. However, commodities controlled for CB, MT, NS or NP may
not be exported under this License Exception to Country Group D or
Country Group E:2. (See Supplement No. 1 to part 740.)
(e) Special provisions: shotguns and shotgun shells. (1) A United
States citizen or a permanent resident alien leaving the United States
may export or reexport shotguns with a barrel length of 18 inches or
over and shotgun shells under this License Exception, subject to the
following limitations:
(i) Not more than three shotguns may be taken on any one trip.
(ii) The shotguns and shotgun shells must be with the person's
baggage but they may not be mailed.
(iii) The shotguns and shotgun shells must be for the person's
exclusive use for legitimate hunting or lawful sporting purposes,
scientific purposes, or personal protection, and not for resale or
other transfer of ownership or control. Accordingly, except as provided
in (e)(2) of this section, shotguns may not be exported permanently
under this License Exception. All shotguns and unused shotgun shells
must be returned to the United States.
(2) A nonresident alien leaving the United States may export or
reexport under this License Exception only such shotguns and shotgun
shells as he or she brought into the United States under the provisions
of Department of Treasury Regulations (27 CFR 178.115(d)).
Sec. 740.10 Aircraft and vessels (AVS).
These License Exceptions authorize departure from the United States
of foreign registry civil aircraft on temporary sojourn in the United
States and of U.S. civil aircraft for temporary sojourn abroad; the
export of equipment and spare parts for permanent use on a vessel or
aircraft; and exports to vessels or planes of U.S. or Canadian registry
and U.S. or Canadian Airlines' installations or agents. Generally, no
License Exception symbol is necessary for export clearance purposes;
however, when necessary, the symbol ``AVS'' may be used.
(a) Aircraft on temporary sojourn. (1) Foreign registered aircraft.
An operating civil aircraft of foreign registry that has been in the
United States on a temporary sojourn may depart from the United States
under its own power for any destination, provided that:
(i) No sale or transfer of operational control of the aircraft to
nationals of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria has
occurred while in the United States;
(ii) The aircraft is not departing for the purpose of sale or
transfer of operational control to nationals of Cuba, Iran, Iraq,
Libya, North Korea, Sudan, or Syria; and
(iii) It does not carry from the United States any item for which
an export license is required and has not been granted by the U.S.
Government.
(2) U.S. registered aircraft. (i) A civil aircraft of U.S. registry
operating under an Air Carrier Operating Certificate, Commercial
Operating Certificate, or Air Taxi Operating Certificate issued by the
Federal Aviation Administration or conducting flights under operating
specifications approved by the Federal Aviation Administration pursuant
to 14 CFR part 129 of the regulations of the Federal Aviation
Administration, may depart from the United States under its own power
for any destination, provided that:
(A) The aircraft does not depart for the purpose of sale, lease or
other disposition of operational control of the aircraft, or its
equipment, parts, accessories, or components to a foreign country or
any national thereof;
(B) The aircraft's U.S. registration will not be changed while
abroad;
(C) The aircraft is not to be used in any foreign military activity
while abroad; and
(D) The aircraft does not carry from the United States any item for
which a license is required and has not been granted by the U.S.
Government.
(ii) Any other operating civil aircraft of U.S. registry may depart
from the United States under its own power for any destination, except
to Cuba, Iran, Iraq, Sudan, Syria, Libya, and North Korea (flights to
these destinations require a license), provided that:
(A) The aircraft does not depart for the purpose of sale, lease or
other disposition of operational control of the aircraft, or its
equipment, parts, accessories, or components to a foreign country or
any national thereof;
(B) The aircraft's U.S. registration will not be changed while
abroad;
(C) The aircraft is not to be used in any foreign military activity
while abroad;
(D) The aircraft does not carry from the United States any item for
which an export license is required and has not been granted by the
U.S. Government; and
(E) The aircraft will be operated while abroad by a U.S. licensed
pilot, except that during domestic flights within a foreign country,
the aircraft may be
[[Page 12779]]
operated by a pilot currently licensed by that foreign country.
(3) Criteria. The following nine criteria each must be met if the
flight is to qualify as a temporary sojourn. To be considered a
temporary sojourn, the flight must not be for the purpose of sale or
transfer of operational control. An export is for the transfer of
operational control unless the exporter retains each of the following
indicia of control:
(i) Hiring of cockpit crew. Right to hire and fire the cockpit
crew.
(ii) Dispatch of aircraft. Right to dispatch the aircraft.
(iii) Selection of routes. Right to determine the aircraft's routes
(except for contractual commitments entered into by the exporter for
specifically designated routes).
(iv) Place of maintenance. Right to perform or obtain the principal
maintenance on the aircraft, which principal maintenance is conducted
outside Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, under
the control of a party who is not a national of any of these countries.
(The minimum necessary in-transit maintenance may be performed in any
country).
(v) Location of spares. Spares are not located in Cuba, Iran, Iraq,
Libya, North Korea, Sudan, or Syria.
(vi) Place of registration. The place of registration is not
changed to Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria.
(vii) No transfer of technology. No technology is transferred to a
national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria,
except the minimum necessary in transit maintenance to perform flight
line servicing required to depart safely.
(viii) Color and logos. The aircraft does not bear the livery,
colors, or logos of a national of Cuba, Iran, Iraq, Libya, North Korea,
Sudan, or Syria.
(ix) Flight number. The aircraft does not fly under a flight number
issued to a national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or
Syria as such a number appears in the Official Airline Guide.
(4) Reexports. Civil aircraft legally exported from the United
States may be reexported under this section, provided the restrictions
described in this paragraph (a) are met.
(b) Equipment and spare parts for permanent use on a vessel or
aircraft, and ship and plane stores. (1) Vessel. Equipment and spare
parts for permanent use on a vessel, when necessary for the proper
operation of such vessel, may be exported or reexported for use on
board a vessel of any registry, except a vessel registered in Country
Group D:1 (see Supplement No. 1 to part 740), Cuba, or North Korea, or
owned or controlled by, or under charter or lease to any of these
countries or their nationals. In addition, other equipment and services
for necessary repair to fishing and fishery support vessels of Country
Group D:1 or North Korea may be exported for use on board such vessels
when admitted into the United States under governing international
fishery agreements.
(2) Aircraft. Equipment and spare parts for permanent use on an
aircraft, when necessary for the proper operation of such aircraft, may
be exported or reexported for use on board an aircraft of any registry,
except an aircraft registered in, owned or controlled by, or under
charter or lease to a country included in Country Group D:1, Cuba,
Libya, or North Korea, or a national of any of these countries.
(3) Ship and plane stores. Usual and reasonable kinds and
quantities of the following commodities may be exported for use or
consumption on board an aircraft or vessel of any registry during the
outgoing and immediate return flight or voyage. (Note that fuel and
related commodities that qualify as ship or plane stores as described
in this License Exception must be exported under the short supply
License Exception SPR (see Sec. 754.2(h) of the EAR.)
(i) Deck, engine, and steward department stores, provisions, and
supplies for both port and voyage requirements;
(ii) Medical and surgical supplies;
(iii) Food stores;
(iv) Slop chest articles;
(v) Saloon stores or supplies.
(c) Shipments to U.S. or Canadian vessels, planes and airline
installations or agents. (1) Exports to vessels or planes of U.S. or
Canadian registry. Export may be made of the commodities set forth in
paragraph (c)(3) of this section, for use by or on a specific vessel or
plane of U.S. or Canadian registry located at any seaport or airport
outside the United States or Canada except a port in Cuba, North Korea
or Country Group D:1 (excluding the PRC and Romania), (see Supplement
No. 1 to part 740) provided that such commodities are all of the
following: <SUP>6
\6\ Where a validated license is required, see Secs. 748.2 and
748.4(g) of the EAR.
---------------------------------------------------------------------------
(i) Ordered by the person in command or the owner or agent of the
vessel or plane to which they are consigned;
(ii) Intended to be used or consumed on board such vessel or plane
and necessary for its proper operation;
(iii) In usual and reasonable kinds and quantities during times of
extreme need; and
(iv) Shipped as cargo for which a Shipper's Export Declaration
(SED) is filed with the carrier, except that an SED is not required
when any of the commodities, other than fuel, is exported by U.S.
airlines to their own aircraft abroad for their use.
(2) Exports to U.S. or Canadian airline's installation or agent.
Exports of the commodities set forth in paragraph (c)(3) of this
section, except fuel, may be made to a U.S. or Canadian airline's
<SUP>7 installation or agent in any foreign destination except Cuba,
North Korea, or Country Group D:1 (excluding the PRC and Romania), (see
Supplement No. 1 to part 740) provided such commodities are all of the
following:
\7\ See Part 772 of the EAR for definitions of United States
and Canadian airlines.
---------------------------------------------------------------------------
(i) Ordered by a U.S. or Canadian airline and consigned to its own
installation or agent abroad;
(ii) Intended for maintenance, repair, or operation of aircraft
registered in either the United States or Canada, and necessary for the
aircraft's proper operation, except where such aircraft is located in,
or owned, operated or controlled by, or leased or chartered to, Cuba,
North Korea or Country Group D:1 (excluding the PRC) (see Supplement
No. 1 to part 740) or a national of such country;
(iii) In usual and reasonable kinds and quantities; and
(iv) Shipped as cargo for which a Shipper's Export Declaration
(SED) is filed with the carrier, except that an SED is not required
when any of these commodities is exported by U.S. airlines to their own
installations and agents abroad for use in their aircraft operations.
(3) Applicable commodities. This paragraph (c) applies to the
following commodities, subject to the provisions in paragraph (c)(1)
and (c)(2) of this section:
Note to paragraph (c)(3) of this section: Fuel and related
commodities for shipment to vessels or planes of U.S. or Canadian
registry as described in this License Exception must be shipped
under the short supply License Exception SPR (see Sec. 754.2(h) of
the EAR);
(i) Deck, engine, and steward department stores, provisions, and
supplies for both port and voyage requirements;
(ii) Medical and surgical supplies;
(iii) Food stores;
(iv) Slop chest articles;
(v) Saloon stores or supplies; and
[[Page 12780]]
(vi) Equipment and spare parts.
Sec. 740.11 Additional permissive reexports (APR).
This License Exception allows the following reexports:
(a) Reexports from Country Group A:1 and cooperating countries.
Reexports may be made from Country Group A:1 or from cooperating
countries, provided that:
(1) The reexport is made in accordance with the conditions of an
export authorization from the government of the reexporting country;
(2) The commodities being reexported are not controlled for nuclear
nonproliferation, missile technology or crime control reasons; and
(3) The reexport is destined to either:
(i) A country in Country Group B that is not also included in
Country Group D:2, D:3, or D:4; Cambodia; or Laos; and the commodity
being reexported is both controlled for national security reasons and
not controlled for export to Country Group A:1; or
(ii) A country in Country Group D:1 only (National Security) (see
Supplement No. 1 to part 740), other than Cambodia or Laos, and the
commodity being reexported is controlled for national security reasons.
(b) Reexports to and among Country Group A:1 and cooperating
countries. Reexports may be made to and among Country Group A:1 and
cooperating countries, provided that eligible commodities are for use
or consumption within a Country Group A:1 (see Supplement No. 1 to part
740) or cooperating country, or for reexport from such country in
accordance with other provisions of the EAR. All commodities except the
following are eligible for reexport to and among Country Group A:1 and
cooperating countries:
(1) Computers with a CTP greater than 10,000 MTOPS to Hong Kong and
South Korea;
(2) Commodities controlled for nuclear nonproliferation reasons.
(c) Reexports to a destination to which direct shipment from the
United States is authorized under an unused outstanding license may be
made under the terms of that license. Such reexports shall be recorded
in the same manner as exports are recorded, regardless of whether the
license is partially or wholly used for reexport purposes. (See part
762 of the EAR for recordkeeping requirements.)
(d) Reexports of any item from Canada that, at the time of
reexport, may be exported directly from the United States to the new
country of destination under any License Exception.
(e) Reexports (return) to the United States of any item. If the
reexporting party requests written authorization because the government
of the country from which the reexport will take place requires formal
U.S. Government approval, such authorization will generally be given.
(f) Reexports from a foreign destination to Canada of any item if
the item could be exported to Canada without a license.
(g) Reexports between Switzerland and Liechtenstein.
(h) Shipments of foreign-made products that incorporate U.S.-origin
components may be accompanied by U.S.-origin controlled spare parts,
provided that they do not exceed 10 percent of the value of the
foreign-made product, subject to the restrictions in Sec. 734.4 of the
EAR.
(i) Reexport to Sudan of items controlled by ECCNs 2A994, 3A993,
5A992, 5A995, 6A990, 6A994, 7A994, 8A992, 8A994, 9A990, 9A992, and
9A994. In addition, items in these ECCNs are not counted as controlled
U.S. content for purposes of determining license requirements for U.S.
parts, components, and materials incorporated into foreign-made
products.
BILLING CODE 3510-DT-P
[[Page 12781]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.008
[[Page 12782]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.009
[[Page 12783]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.010
[[Page 12784]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.011
[[Page 12785]]
[GRAPHIC] [TIFF OMITTED] TR25MR96.012
BILLING CODE 3510-DT-C
[[Page 12786]]
Supplement No. 2 to Part 740--Items That May Be Donated To Meet Basic
Human Needs Under the Humanitarian License Exception
(a) Health
Equipment for the Handicapped
Hospital Supplies and Equipment
Laboratory Supplies and Equipment
Medical Supplies and Devices
Medicine-Processing Equipment
Medicines
Vitamins
Water Resources Equipment
Food
Agricultural Materials and Machinery Suited to Small-Scale Farming
Operations
Agricultural Research and Testing Equipment
Fertilizers
Fishing Equipment and Supplies Suited to Small-Scale Fishing
Operations
(b) Food
Insecticides
Pesticides
Seeds
Small-Scale Irrigation Equipment
Veterinary Medicines and Supplies
(c) Clothes and Household Goods
Bedding
Clothes
Cooking Utensils
Fabric
Personal Hygiene Items
Soap-Making Equipment
Weaving and Sewing Equipment
(d) Shelter
Building Materials
Hand Tools
(e) Education
Books
Individual School Supplies
School Furniture
Special Education Supplies and Equipment for the Handicapped
(f) Basic Support Equipment and Supplies Necessary To Operate and
Administer the Donative Program
Audio-Visual Aids for Training
Generators
Office Supplies and Equipment
PART 742--CONTROL POLICY--CCL BASED CONTROLS
Sec.
742.1 Introduction.
742.2 Proliferation of chemical and biological weapons.
742.3 Nuclear nonproliferation.
742.4 National security.
742.5 Missile technology.
742.6 Regional stability.
742.7 Crime control.
742.8 Anti-Terrorism: Iran.
742.9 Anti-Terrorism: Syria.
742.10 Anti-Terrorism: Sudan.
742.11 Specially designed implements of torture.
742.12 High performance computers.
742.13 Communications intercepting devices.
Supplement No. 1 to Part 742--Nonproliferation of Chemical and
Biological Weapons
Supplement No. 2 to Part 742--Anti-Terrorism Controls; Iran, Syria and
Sudan Contract Sanctity Dates and Related Policies
Supplement No. 3 to Part 742--High Performance Computers; Safeguard
Conditions and Related Information
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a;
E.O. 12058, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 3 CFR, 1993
Comp., p. 608; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3
CFR, 1994 Comp., p. 950; Notice of August 15, 1995 (60 FR 42767,
August 17, 1995).
Sec. 742.1 Introduction. In this part, references to the Export
Administration Regulations (EAR) are references to 15 CFR chapter VII,
subchapter C.
(a) Scope. This part describes all the reasons for control
reflected in the Country Chart in Supplement No. 1 to part 738 of the
EAR. In addition, it includes licensing requirements and licensing
policies for the following items that are not reflected on the Country
Chart: specially designed implements of torture, high performance
computers, and communications intercepting devices. This part is
organized so that it lists each reason for control in the order
(reading left to right) in which the control appears on the Country
Chart. In addition to describing the reasons for control and licensing
requirements and policies, this part describes any applicable contract
sanctity provisions that may apply to specific controls and includes a
description of any multilateral regime under which specific controls
are maintained.
(b) Reasons for control listed on the CCL not covered by this part.
This part describes the license requirements and the licensing policies
for all the ``Reasons for Control'' that are listed on the Commerce
Control List (CCL) except ``Short Supply'' and ``U.N. Sanctions,''
which do not appear on the Country Chart.
(1) Short Supply. ECCNs containing items subject to short supply
controls (``SS'') refer the exporter to part 754 of the EAR. These
ECCNs are: 0A980 (Horses for export by sea); 1C980 (certain inorganic
chemicals); 1C981 (Crude petroleum, including reconstituted crude
petroleum, tar sands, and crude shale oil); 1C982 (certain other
petroleum products); 1C983 (Natural gas liquids and other natural gas
derivatives); 1C984 (certain manufactured gas and synthetic natural gas
(except when commingled with natural gas and thus subject to export
authorization from the Department of Energy); and 1C988 (Western red
cedar (thuja plicata) logs and timber, and rough, dressed and worked
lumber containing wane).
(2) U.N. Sanctions. The United Nations imposes sanctions, short of
complete embargoes, against certain countries which may result in
controls that supplement those otherwise maintained under the EAR for
that particular country. This part does not address license
requirements and licensing policies for controls implementing U.N.
sanctions. CCL entries containing items subject to U.N. sanctions will
refer the exporter to part 746 of the EAR, Embargoes and Other Special
Controls, for any supplemental controls that may apply to exports and
reexports involving these countries.
(c) Exports and reexports involving Cuba, Libya, North Korea, Iraq,
Iran, and the Bosnian Serb-controlled areas of Bosnia-Herzegovina. This
part does not cover license requirements and licensing policies that
apply to exports and reexports to embargoed destinations (Cuba, Libya,
North Korea, Iraq, Iran and the Bosnian-Serb controlled areas of
Bosnia-Herzegovina). These comprehensive embargoes cover a broader
range of items than those reflected in the CCL. If you are exporting or
reexporting to any of these destinations, you should first review part
746 of the EAR, Embargoes and Other Special Controls.
(d) Anti-terrorism Controls on Cuba, Libya, Iran, Iraq, North
Korea, Sudan and Syria. Commerce maintains anti-terrorism controls on
Iran, Syria and Sudan under section 6(a) of the Export Administration
Act. Items controlled under section 6(a) to these three countries are
described in Supplement No. 2 to part 742. Commerce also maintains
controls under EAA section 6(j) of the EAA to Cuba, Libya, Iraq, Iran,
North Korea, Sudan and Syria. Items controlled to these seven countries
under EAA section 6(j) are also described in Supplement 2 to part 742.
The Secretaries of Commerce and State are required to notify
appropriate Committees of the Congress 30 days before issuing a license
for an item controlled under section 6(j) to Cuba, Libya, North Korea,
Iran, Iraq, Sudan or Syria. As noted in paragraph (c) of this section,
if you are exporting or reexporting to Cuba, Libya, Iran, Iraq and
North Korea, you should review Part 746 of the EAR, Embargoes and Other
Special Controls.
(e) End-user and end-use based controls. This part does not cover
prohibitions and licensing requirements for exports of items not
included on the
[[Page 12787]]
CCL that are subject to end-use and end-user controls: certain nuclear
end-uses; certain missile end-uses; certain chemical and biological
weapons end-uses; certain naval nuclear propulsion end-uses; certain
activities of U.S. persons; certain exports to and for the use of
certain foreign vessels or aircraft; and certain exports to all
countries for Libyan aircraft. Licensing requirements and policies for
these exports are contained in part 744 of the EAR.
(f) Overlapping license policies. Many items on the CCL are subject
to more than one type of control (e.g., national security (NS), missile
technology (MT), nuclear nonproliferation (NP), regional stability
(RS)). In addition, applications for all items on the CCL, other than
those controlled for short supply reasons, may be reviewed for missile
technology (see Sec. 742.5(b)(3) of this part), nuclear
nonproliferation (see Sec. 742.3(b)(2) of this part), or chemical and
biological weapons (see Sec. 742.3(b)(3) of this part), if the end-use
or end-user may be involved in certain proliferation activities.
Finally, many multilaterally controlled items are reviewed for anti-
terrorism reasons if they are destined for a terrorism-supporting
country (see paragraph (d) of this section). Your application for a
license will be reviewed under all applicable licensing policies. A
license will be issued only if an application can be approved under all
applicable licensing policies.
Sec. 742.2 Proliferation of chemical and biological weapons.
(a) License requirements. The following controls are maintained in
support of the U.S. foreign policy of opposing the proliferation and
illegal use of chemical and biological weapons:
(1) If CB Column 1 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to all destinations except Canada for the following:
(i) Human pathogens, zoonoses, toxins, animal pathogens,
genetically modified microorganisms and plant pathogens identified in
ECCNs 1C351, 1C352, 1C353 and 1C354; and
(ii) Technology (ECCN 1E391) for the production and/or disposal of
microbiological commodities described in paragraph (a)(1)(i) of this
section.
(2) If CB Column 2 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to all destinations except countries in Country Group A:3 (see
Supplement No. 1 to part 740 of the EAR) (Australia Group members) for
the following:
(i) Chemicals identified in ECCN 1C350 (precursor and intermediate
chemicals used in the production of chemical warfare agents).
(A) This licensing requirement includes chemical mixtures
containing any chemicals identified in ECCN 1C350, except as specified
in Note 2 to that ECCN.
(B) This licensing requirement does not include chemical compounds
created with any chemicals identified in ECCN 1C350, unless those
compounds are also identified in ECCN 1C350.
(ii) Software (ECCN 1D390) for process control that is specifically
configured to control or initiate production of the chemical precursors
controlled by ECCN 1C350.
(iii) Technology (ECCN 1E390) for the production and/or disposal of
chemical precursors described in ECCN 1C350, and technology involving
the following for facilities designed or intended to produce chemicals
described in ECCN 1C350:
(A) Overall plant design;
(B) Design, specification, or procurement of equipment;
(C) Supervision of construction, installation, or operation of
complete plant or components thereof;
(D) Training of personnel; or
(E) Consultation on specific problems involving such facilities.
(3) If CB Column 3 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to Country Group D:3 (see Supplement No. 1 to part 740 of the
EAR) for the following:
(i) Equipment and materials identified in ECCNs 2B350 and 2B351 on
the CCL, which can be used in the production of chemical weapons
precursors or chemical warfare agents, and equipment and materials
identified in ECCN 2B352, which can be used in the production of
biological agents; and
(ii) Technology (ECCN 2E301) for production of the commodities
covered in ECCNs 2B350, 2B351, 2B352, 2B353 and 2B354.
(b) Licensing policy. (1) License applications for the items
described in paragraph (a) of this section will be considered on a
case-by-case basis to determine whether the export or reexport would
make a material contribution to the design, development, production,
stockpiling, or use of chemical or biological weapons. When an export
or reexport is deemed to make such a contribution, the license will be
denied.
(2) The following factors are among those that will be considered
to determine what action should be taken on individual license
applications:
(i) The specific nature of the end-use;
(ii) The significance of the export and reexport in terms of its
contribution to the design, development, production, stockpiling, or
use of chemical or biological weapons;
(iii) The nonproliferation credentials of the importing country;
(iv) The types of assurances or guarantees against design,
development, production, stockpiling, or use of chemical or biological
weapons that are given in a particular case; and
(v) The existence of a pre-existing contract.
(3) BXA will review license applications in accordance with the
licensing policy described in paragraph (b)(2) of this section for
items not described in paragraph (a) of this section that:
(i) Require a license for reasons other than short supply;
(ii) Are destined to any country except countries in Country Group
A:3 (see Supplement No. 1 to part 740 of the EAR) (Australia Group
members); and
(iii) Could be destined for the design, development, production,
stockpiling, or use of chemical or biological weapons, or for a
facility engaged in such activities.
(c) Contract sanctity. Contract sanctity dates are set forth in
Supplement No. 1 to part 742. Applicants who wish that a preexisting
contract be considered in reviewing their license applications must
submit documentation sufficient to establish the existence of such a
contract.
(d) Australia Group. The Australia Group, a multilateral body that
works to halt the spread of chemical and biological weapons, has
developed common control lists of items specifically related to
chemical and biological weapons. Australia Group members are listed in
Country Group A:3 (see Supplement No. 1 to part 740 of the EAR).
Controls on items listed in paragraph (a) of this section are
consistent with lists agreed to in the Australia Group.
Sec. 742.3 Nuclear nonproliferation.
(a) License requirements. Section 309(c) of the Nuclear Non-
Proliferation Act of 1978 requires BXA to identify items subject to the
EAR that could be of significance for nuclear explosive purposes if
used for activities other than those authorized at the time of export
or reexport. ECCNs on the CCL that include the symbol ``NP 1'' or ``NP
2'' in the ``Country Chart'' column of the ``License Requirements''
section identify items that could be of significance for nuclear
explosive purposes and are therefore subject to licensing
[[Page 12788]]
requirements under this part and under section 309(c) of the Nuclear
Non-Proliferation Act of 1978. These items are referred to as ``The
Nuclear Referral List'' and are subject to the following licensing
requirements:
(1) If NP Column 1 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the appropriate ECCN, a license is
required to all destinations except Nuclear Suppliers Group (NSG)
member countries (Country Group A:4) (see Supplement No. 1 to part 740
of the EAR).
(2) If NP Column 2 of the Country Chart (Supplement No. 1 to part
738 of the EAR) is indicated in the applicable ECCN, a license is
required to Country Group D:2 (see Supplement No. 1 to part 740 of the
EAR).
(3) Other nuclear-related license requirements are described in
Secs. 744.2 and 744.5 of the EAR.
(b) Licensing policy. (1) To implement the controls in paragraph
(a) of this section, the following factors are among those used to
determine what action should be taken on individual applications:
(i) Whether the items to be transferred are appropriate for the
stated end-use and whether that stated end-use is appropriate for the
end-user;
(ii) The significance for nuclear purposes of the particular item;
(iii) Whether the items to be exported or reexported are to be used
in research on, or for the development, design, manufacture,
construction, operation, or maintenance of, any reprocessing or
enrichment facility;
(iv) The types of assurances or guarantees given against use for
nuclear explosive purposes or proliferation in the particular case;
(v) Whether any party to the transaction has been engaged in
clandestine or illegal procurement activities;
(vi) Whether an application for a license to export or reexport to
the end-user has previously been denied, or whether the end-user has
previously diverted items received under a general license, a License
Exception, or a validated license to unauthorized activities;
(vii) Whether the export or reexport would present an unacceptable
risk of diversion to a nuclear explosive activity or unsafeguarded
nuclear fuel-cycle activity described in Sec. 744.2(a) of the EAR; and
(viii) The nonproliferation credentials of the importing country,
based on consideration of the following factors:
(A) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of
Nuclear Weapons in Latin America (Treaty of Tlatelolco) or to a similar
international legally-binding nuclear nonproliferation agreement;
(B) Whether the importing country has all of its nuclear
activities, facilities, or installations that are operational, being
designed, or under construction under International Atomic Energy
Agency (IAEA) safeguards or equivalent full scope safeguards;
(C) Whether there is an agreement for cooperation in the civil uses
of atomic energy between the U.S. and the importing country;
(D) Whether the actions, statements, and policies of the government
of the importing country are in support of nuclear nonproliferation and
whether that government is in compliance with its international
obligations in the field of non-proliferation;
(E) The degree to which the government of the importing country
cooperates in non-proliferation policy generally (e.g., willingness to
consult on international nonproliferation issues); and
(F) Information on the importing country's nuclear intentions and
activities.
(2) In addition, BXA will review license applications in accordance
with the licensing policy described in paragraph (b) of this section
for items not on the Nuclear Referral List that:
(i) Require a license on the CCL for reasons other than ``short
supply;'' and
(ii) Are intended for a nuclear related end-use or end-user.
(3) For the People's Republic of China, the general licensing
policy for applications for those items that would make a direct and
significant contribution to nuclear weapons and their delivery systems
is extended review or denial.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
(d) Nuclear Suppliers Group. Most items on the Nuclear Referral
List that require a license under NP Column No. 1 on the Country Chart
(see Supplement No. 1 to part 738 of the EAR) are contained in the
Annex to the ``Guidelines for Transfers of Nuclear-Related Dual-Use
Equipment, Material, and Related Technology'' (the Annex), as published
by the International Atomic Energy Agency in INFCIRC/254/Revision 1/
Part 2. The adherents to INFCIRC/254/Revision 1/Part 2, which includes
the Nuclear Suppliers Guidelines, have agreed to establish export
licensing procedures for the transfer of items identified in the Annex.
Items that are listed as requiring a license under NP Column No. 2 on
the Country Chart (see Supplement No. 1 to part 738 of the EAR) are not
included in the Annex and are controlled only by the United States.
Sec. 742.4 National security.
(a) License requirements. It is the policy of the United States to
restrict the export and reexport of items that would make a significant
contribution to the military potential of any other country or
combination of countries that would prove detrimental to the national
security of the United States. Accordingly, a license is required for
exports and reexports to all destinations, except Canada, for all items
in ECCNs on the CCL that include NS Column 1 in the Country Chart
column of the ``License Requirements'' section. A license is required
to all destinations except Country Group A:1 and cooperating countries
(see Supplement No. 1 to part 740) for all items in ECCNs on the CCL
that include NS Column 2 in the Country Chart column of the ``License
Requirements'' section. The purpose of the controls is to ensure that
these items do not make a contribution to the military potential of
countries in Country Group D:1 (see Supplement No. 1 to part 740 of the
EAR) that would prove detrimental to the national security of the
United States. License Exception GBS is available for the export and
reexport of certain national security controlled items to Country Group
B (see Sec. 740.3(b) and Supplement No. 1 to part 740 of the EAR).
(b) Licensing policy. (1) The policy for national security
controlled items exported or reexported to any country except a country
in Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is
to approve applications unless there is a significant risk that the
items will be diverted to a country in Country Group D:1.
(2) Except for those countries described in paragraphs (b)(5)
through (b)(7) of this section, the general policy for exports and
reexports of items to Country Group D:1 (see Supplement No. 1 to part
740 of the EAR) is to approve applications when BXA determines, on a
case-by-case basis, that the items are for civilian use or would
otherwise not make a significant contribution to the military potential
of the country of destination that would prove detrimental to the
national security of the United States.
(3) To permit such policy judgments to be made, each application is
reviewed in the light of prevailing policies with full consideration of
all
[[Page 12789]]
aspects of the proposed transaction. The review generally includes:
(i) An analysis of the kinds and quantities of items to be shipped;
(ii) Their military or civilian uses;
(iii) The unrestricted availability abroad of the same or
comparable items;
(iv) The country of destination;
(v) The ultimate end-users in the country of destination; and
(vi) The intended end-use.
(4) Although each proposed transaction is considered individually,
items described in Advisory Notes on the Commerce Control List are more
likely to be approved than others.
(5) In recognition of efforts made to adopt safeguard measures for
exports and reexports, Bulgaria, Latvia, Kazakhstan, Lithuania,
Mongolia, and Russia are accorded enhanced favorable consideration
licensing treatment.
(6) The general policy for Cambodia and Laos is to approve license
applications when BXA determines, on a case-by-case basis, that the
items are for an authorized use in Cambodia or Laos and are not likely
to be diverted to another country or use contrary to the national
security or foreign policy controls of the United States.
(7) For the People's Republic of China, the general licensing
policy is to approve applications, except that those items that would
make a direct and significant contribution to electronic and anti-
submarine warfare, intelligence gathering, power projection, and air
superiority receive extended review or denial. Each application will be
considered individually. Items may be approved even though they may
contribute to Chinese military development or the end-user or end-use
is military. Note that the Advisory Notes in the CCL headed ``Note for
the People's Republic of China'' provide guidance on equipment likely
to be approved more rapidly for China.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
(d) [Reserved]
Sec. 742.5 Missile technology.
(a) License requirements. (1) In support of U.S. foreign policy to
limit the proliferation of missiles, a license is required to export
and reexport items related to the design, development, production, or
use of missiles. These items are identified in ECCNs on the CCL as MT
Column No. 1 in the Country Chart column of the ``License
Requirements'' section. Licenses for these items are required to all
destinations, except Canada, as indicated by MT Column 1 of the Country
Chart (see Supplement No. 1 to part 738 of the EAR).
(2) The term ``missiles'' is defined as rocket systems (including
ballistic missile systems, space launch vehicles, and sounding rockets)
and unmanned air vehicle systems (including cruise missile systems,
target drones, and reconnaissance drones) capable of delivering at
least 500 kilograms (kg) payload to a range of at least 300 kilometers
(km).
(b) Licensing policy. (1) Applications to export and reexport items
identified in ECCNs on the CCL as MT Column No. 1 in the Country Chart
column of the ``License Requirements'' section will be considered on a
case-by-case basis to determine whether the export or reexport would
make a material contribution to the proliferation of missiles.
Applications for exports and reexports of such items contained in
Category 7A or described by ECCN 9A101 on the CCL will be considered
more favorably if such exports or reexports are determined to be
destined to a manned aircraft, satellite, land vehicle, or marine
vessel, in quantities appropriate for replacement parts for such
applications. When an export or reexport is deemed to make a material
contribution to the proliferation of missiles, the license will be
denied.
(2) The following factors are among those that will be considered
in reviewing individual applications.
(i) The specific nature of the end-use;
(ii) The significance of the export and reexport in terms of its
contribution to the design, development, production, or use of
missiles;
(iii) The capabilities and objectives of the missile and space
programs of the recipient country;
(iv) The nonproliferation credentials of the importing country;
(v) The types of assurances or guarantees against design,
development, production, or use of missiles that are given in a
particular case; and
(vi) The existence of a preexisting contract.
(3) Controls on other items. BXA will review license applications,
in accordance with the licensing policy described in paragraph (b)(1)
of this section, for items not described in paragraph (a) of this
section that:
(i) Require a validated license for reasons other than short
supply; and
(ii) Could be destined for the design, development, production, or
use of missiles, or for a facility engaged in such activities.
(c) Contract sanctity. The following contract sanctity dates have
been established:
(1) License applications for batch mixers specified in ECCN 1B115.a
involving contracts that were entered into prior to January 19, 1990,
will be considered on a case-by-case basis.
(2) License applications subject to ECCN 1B115.b or .c that involve
a contract entered into prior to March 7, 1991, will be considered on a
case-by-case basis.
(3) Applicants who wish that a pre-existing contract be considered
in reviewing their license applications must submit documentation
sufficient to establish the existence of a contract.
(d) Missile Technology Control Regime. Missile Technology Control
Regime (MTCR) members are listed in Country Group A:2 (see Supplement
No. 1 to part 740 of the EAR). Controls on items identified in
paragraph (a) of this section are consistent with the list agreed to in
the MTCR and included in the MTCR Annex.
Sec. 742.6 Regional stability.
(a) License requirements. The following controls are maintained in
support of U.S. foreign policy to maintain regional stability:
(1) As indicated in the CCL and in RS Column 1 of the Country Chart
(see Supplement No. 1 to part 738 of the EAR), a license is required to
all destinations, except Canada, for items described on the CCL under
ECCNs 6A002.a.1, a.2, a.3, or .c; 6A003.b.3 and b.4; 6D102 (only
software for development of items in 6A002.a.1, a.2, a.3 or .c); 6E001
(only technology for development of items in 6A002.a.1, a.2, a.3, and
.c, or 6A003.b.3 and b.4); 6E002 (only technology for production of
items in 6A002.a.1, a.2, a.3, or .c, or 6A003.b.3 or b.4); 7D001 (only
software for development or production of items in 7A001, 7A002, or
7A003); 7E001 (only technology for the development of inertial
navigation systems, inertial equipment, and specially designed
components therefor for civil aircraft); 7E002 (only technology for the
production of inertial navigation systems, inertial equipment, and
specially designed components therefor for civil aircraft).
(2) As indicated in the CCL and in RS Column 2 of the Country Chart
(see Supplement No. 1 to part 738 of the EAR), a license is required to
any destination except countries in Country Group A:1 (see Supplement
No. 1 to part 740 of the EAR), Iceland and New Zealand for military
vehicles and certain commodities (specially designed) used to
manufacture military equipment, described on the CCL in ECCNs 0A018.c,
1B018.a, 2B018, and 9A018.a and .b.
[[Page 12790]]
(b) Licensing policy. (1) Applications to export and reexport items
described in paragraph (a)(1) of this section will be reviewed on a
case-by-case basis to determine whether the export or reexport could
contribute directly or indirectly to any country's military
capabilities in a manner that would alter or destabilize a region's
military balance contrary to the foreign policy interests of the United
States.
(2) Applications to export and reexport commodities described in
paragraph (a)(2) of this section will generally be considered favorably
on a case-by-case basis unless there is evidence that the export or
reexport would contribute significantly to the destabilization of the
region to which the equipment is destined.
(c) Contract sanctity. Contract sanctity provisions are not
available for license applications reviewed under this section.
(d) U.S. controls. Although the United States seeks cooperation
from like-minded countries in maintaining regional stability controls,
at this time these controls are maintained only by the United States.
Sec. 742.7 Crime control.
(a) License requirements. In support of U.S. foreign policy to
promote the observance of human rights throughout the world, a license
is required to export and reexport crime control and detection
equipment, related technology and software as follows:
(1) Crime control and detection instruments and equipment and
related technology and software identified in the appropriate ECCNs on
the CCL under CC Column No. 1 in the Country Chart column of the
``License Requirements'' section. A license is required to countries
listed in CC Column 1 (Supplement No. 1 to part 738 of the EAR). Items
affected by this requirement are identified on the CCL under the
following ECCNs: 0A982, 0A984, 0A985, 0E984, 1A984, 3A980, 3A981,
3D980, 3E980, 4A003 (fingerprint computers only), 4A980, 4D001 (for
fingerprint computers only), 4D980, 4E001 (for fingerprint computers
only); 4E980, 6A002 (police-model infrared viewers only), 6E001 (for
police-model infrared viewers only), 6E002 (for police-model infrared
viewers only), and 9A980.
(2) Shotguns with a barrel length of 24 inches or more identified
in ECCN 0A984 on the CCL under CC Column No. 2 in the Country Chart
column of the ``License Requirements'' section regardless of end-user
to countries listed in CC Column 2 (Supplement No. 1 to part 738 of the
EAR).
(3) Shotguns with barrel length over 24 inches, identified in ECCN
0A984 on the CCL under CC Column No. 3 in the Country Chart column of
the ``License Requirements'' only if for sale or resale to police or
law enforcement entities to countries listed in CC Column 3 (Supplement
No. 1 to part 738 of the EAR).
(b) Licensing policy. Applications for items controlled under this
section will generally be considered favorably on a case-by-case basis
unless there is evidence that the government of the importing country
may have violated internationally recognized human rights and that the
judicious use of export controls would be helpful in deterring the
development of a consistent pattern of such violations or in distancing
the United States from such violations.
(c) Contract sanctity. Contract sanctity provisions