[Federal Register: March 25, 1996 (Rules and Regulations)]
[Page 12914-12964]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
 
[[pp. 12914-12964]] Export Administration Regulation; Simplification of Export 
Administration Regulations

[[Continued from page 12913]]

[[Page 12914]]

    (c) Related persons. A temporary denial order may be made 
applicable to related persons in accordance with Sec. 766.23 of this 
part.
    (d) Renewal. (1) If, no later than 20 days before the expiration 
date of a temporary denial order, BXA believes that renewal of the 
denial order is necessary in the public interest to prevent an imminent 
violation, BXA may file a written request setting forth the basis for 
its belief, including any additional or changed circumstances, asking 
that the Assistant Secretary renew the temporary denial order, with 
modifications, if any are appropriate, for an additional period not 
exceeding 180 days. BXA's request shall be delivered to the respondent, 
or any agent designated for this purpose, in accordance with 
Sec. 766.5(b) of this part, which will constitute notice of the renewal 
application.
    (2) Non-resident respondents. To facilitate timely notice of 
renewal requests, a respondent not a resident of the United States may 
designate a local agent for this purpose and provide written 
notification of such designation to BXA in the manner set forth in 
Sec. 766.5(b) of this part.
    (3) Hearing. (i) A respondent may oppose renewal of a temporary 
denial order by filing with the Assistant Secretary a written 
submission, supported by appropriate evidence, to be received not later 
than seven days before the expiration date of such order. For good 
cause shown, the Assistant Secretary may consider submissions received 
not later than five days before the expiration date. The Assistant 
Secretary ordinarily will not allow discovery; however, for good cause 
shown in respondent's submission, he/she may allow the parties to take 
limited discovery, consisting of a request for production of documents. 
If requested by the respondent in the written submission, the Assistant 
Secretary shall hold a hearing on the renewal application. The hearing 
shall be on the record and ordinarily will consist only of oral 
argument. The only issue to be considered on BXA's request for renewal 
is whether the temporary denial order should be continued to prevent an 
imminent violation as defined herein.
    (ii) Any person designated as a related person may not oppose 
issuance or renewal of the temporary denial order, but may file an 
appeal in accordance with Sec. 766.2(3)(c) of this part.
    (iii) If no written opposition to BXA's renewal request is received 
within the specified time, the Assistant Secretary may issue the order 
renewing the temporary denial order without a hearing.
    (4) A temporary denial order may be renewed more than once.
    (e) Appeals. (1) Filing. (i) A respondent may, at any time, file an 
appeal of the initial or renewed temporary denial order with the 
administrative law judge.
    (ii) The filing of an appeal shall stay neither the effectiveness 
of the temporary denial order nor any application for renewal, nor will 
it operate to bar the Assistant Secretary's consideration of any 
renewal application.
    (2) Grounds. A respondent may appeal on the grounds that the 
finding that the order is necessary in the public interest to prevent 
an imminent violation is unsupported.
    (3) Appeal procedure. A full written statement in support of the 
appeal must be filed with the appeal together with appropriate 
evidence, and be simultaneously served on BXA, which shall have seven 
days from receipt to file a reply. Service on the administrative law 
judge shall be addressed to the Office of the Administrative Law Judge, 
U.S. Department of Commerce, Room H-6716, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230. Service on BXA shall be as set 
forth in Sec. 766.5(b) of this part. The administrative law judge 
normally will not hold hearings or entertain oral argument on appeals.
    (4) Recommended Decision. Within 10 working days after an appeal is 
filed, the administrative law judge shall submit a recommended decision 
to the Under Secretary, and serve copies on the parties, recommending 
whether the issuance or the renewal of the temporary denial order 
should be affirmed, modified or vacated.
    (5) Final decision. Within five working days after receipt of the 
recommended decision, the Under Secretary shall issue a written order 
accepting, rejecting or modifying the recommended decision. Because of 
the time constraints, the Under Secretary's review will ordinarily be 
limited to the written record for decision, including the transcript of 
any hearing. The issuance or renewal of the temporary denial order 
shall be affirmed only if there is reason to believe that the temporary 
denial order is required in the public interest to prevent an imminent 
violation of the EAA, the EAR, or any order, license or other 
authorization issued under the EAA. The Under Secretary's written order 
is final and is not subject to judicial review, except as provided in 
paragraph (g) of this section.
    (f) Delivery. A copy of any temporary denial order issued or 
renewed and any final decision on appeal shall be published in the 
Federal Register and shall be delivered to BXA and to the respondent, 
or any agent designated for this purpose, and to any related person in 
the same manner as provided in Sec. 766.5 of this part for filing for 
papers other than a charging letter.
    (g) Judicial review. A respondent temporarily denied export 
privileges by order of the Under Secretary may appeal to the United 
States Court of Appeals for the District of Columbia pursuant to 50 
U.S.C. app. Sec. 2412(d)(3).


Sec. 766.25  Administrative action denying permission to apply for or 
use export licenses.

    (a) General. The Director of the Office of Exporter Services, in 
consultation with the Director of the Office of Export Enforcement, may 
deny permission to apply for or use any license, including any License 
Exception, to any person who has been convicted of a violation of the 
EAA, the EAR, or any order, license or authorization issued thereunder; 
any regulation, license or order issued under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706); 18 U.S.C. 793, 794 
or 798; section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 
783(b)), or section 38 of the Arms Export Control Act (22 U.S.C. 2778).
    (b) Procedure. Upon notification that a person has been convicted 
of a violation of one or more of the provisions specified in paragraph 
(a) of this section, the Director of the Office of Exporter Services, 
in consultation with the Director of the Office of Export Enforcement, 
will determine whether to deny permission to apply for or use any 
export license, including any License Exception, to any such person. 
The Director of the Office of Exporter Services will notify each person 
denied under this section by letter stating that permission to apply 
for or use export licenses has been denied.
    (c) Criteria. In determining whether and for how long to deny U.S. 
export privileges to a person previously convicted of one or more of 
the statutes set forth in paragraph (a) of this section, the Director 
of the Office of Exporter Services may take into consideration any 
relevant information, including, but not limited to, the seriousness of 
the offense involved in the criminal prosecution, the nature and 
duration of the criminal sanctions imposed, and whether the person has 
undertaken any corrective measures.
    (d) Duration. Any denial of permission to apply for or use export

[[Page 12915]]
licenses, including any License Exception, under this section shall not 
exceed 10 years from the date of the conviction of the person who is 
subject to the denial.
    (e) Effect. Any person denied permission to apply for and use 
licenses under this section will be considered a ``person denied export 
privileges'' for purposes of Sec. 736.2(b)(4) (General Prohibition 4--
Engage in actions prohibited by a denial order) and Sec. 764.2(k) of 
the EAR.
    (f) Publication. The name and address(es) of any person denied 
permission to apply for or use export licenses under this section will 
be published as described in Supplement No. 2 to part 764 of the EAR, 
noting that such action was taken pursuant to this section and section 
11(h) of the EAA.
    (g) Appeal. An appeal of an action under this section will be 
pursuant to part 756 of the EAR.
    (h) Applicability to related person. The Director of the Office of 
Exporter Services, in consultation with the Director of the Office of 
Export Enforcement, may take action in accordance with Sec. 766.23 of 
this part to make applicable to related persons an order that is being 
sought or that has been issued under this section.

PART 768--FOREIGN AVAILABILITY DETERMINATION PROCEDURES AND 
CRITERIA

Sec. 768.1  Introduction.
Sec. 768.2  Foreign availability described.
Sec. 768.3  Foreign availability assessment.
Sec. 768.4  Initiation of an assessment.
Sec. 768.5  Contents of foreign availability submissions and 
Technical Advisory Committee certifications.
Sec. 768.6  Criteria.
Sec. 768.7  Procedures.
Sec. 768.8  Eligibility of expedited licensing procedures for non-
controlled countries.
Sec. 768.9  Appeals of negative foreign availability determinations.
Sec. 768.10  Removal of controls on less sophisticated items.

Supplement No. 1 to Part 768--Evidence of Foreign Availability

Supplement No. 2 to Part 768--Items Eligible For Expedited Licensing 
Procedures

    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. 768.1  Introduction.

    In this part, references to the Export Administration Regulations 
(EAR) are references to 15 CFR chapter VII, subchapter C.
    (a) Authority. Pursuant to sections 5(f) and 5(h) of the Export 
Administration Act (EAA), the Under Secretary of Commerce for Export 
Administration directs the Bureau of Export Administration (BXA) in 
gathering and analyzing all the evidence necessary for the Secretary to 
determine foreign availability.
    (b) Scope. This part applies only to the extent that items are 
controlled for national security purposes.
    (c) Types of programs. There are two general programs of foreign 
availability:
    (1) Foreign availability to controlled countries. In this category 
are denied license assessments (see Secs. 768.4(b) and 768.7 of this 
part) and decontrol assessments (see Secs. 768.4(c) and 768.7 of this 
part).
    (2) Foreign availability to non-controlled countries. In this 
category are denied license assessments, decontrol assessments, and 
evaluations of eligibility for expedited licensing (see Sec. 768.8 of 
this part).
    (d) Definitions. The following are definitions of terms used in 
this part 768:
    Allegation. See foreign availability submission.
    Assessment. An evidentiary analysis that BXA conducts concerning 
the foreign availability of a given item based on the assessment 
criteria, data gathered by BXA, and the data and recommendations 
submitted by the Departments of Defense and State and other relevant 
departments and agencies, TAC committees, and industry.
    Assessment criteria. Statutorily established criteria that must be 
assessed for the Secretary to make a determination with respect to 
foreign availability. They are, available-in-fact, from a non-U.S. 
source, in sufficient quantity so as to render the control ineffective, 
and of comparable quality. (See Sec. 768.6 of this part).
    Available-in-fact. An item is available-in-fact to a country if it 
is produced within the country or if it may be obtained by that country 
from a third country. Ordinarily, items will not be considered 
available-in-fact to non-controlled countries if the items are 
available only under a validated national security license or a 
comparable authorization from a country that maintains export controls 
on such items cooperatively with the United States.
    Claimant. Any party who makes a foreign availability submission, 
excluding TACs.
    Comparable quality. An item is of comparable quality to an item 
controlled under the EAR if it possesses the characteristics specified 
in the Commerce Control List (CCL) for that item and is alike in key 
characteristics that include, but are not limited to: (1) Function; (2) 
technological approach; (3) performance thresholds; (4) maintainability 
and service life; and (5) any other attribute relevant to the purpose 
for which the control was placed on the item.
    Controlled countries. Albania, Armenia, Azerbaijan, Belarus, 
Bulgaria, Cambodia, Cuba, Estonia, Georgia, Kazakhstan, Kyrgystan, 
Laos, Latvia, Lithuania, Moldova, Mongolia, North Korea, Romania, 
Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Vietnam and the 
People's Republic of China.
    Decontrol. Removal of license requirements under the EAR.
    Decontrol assessment. An assessment of the foreign availability of 
an item to a country or countries for purposes of determining whether 
decontrol is warranted. Such assessments may be conducted after BXA 
receives a foreign availability submission or a TAC certification, or 
by the Secretary's own initiative.
    Denied license assessment. A foreign availability assessment 
conducted as a result of a claimant's allegation of foreign 
availability for an item (or items) that BXA has denied or has issued a 
letter of intent to deny a license. If the Secretary determines that 
foreign availability exists, BXA's approval of a license will be 
limited to the items, countries, and quantities in the allegation.
    Determination. The Secretary's decision that foreign availability 
within the meaning of the EAA does or does not exist. (See Sec. 768.7 
of this part).
    Expedited licensing procedure eligibility evaluation. An evaluation 
that BXA initiates for the purpose of determining whether an item is 
eligible for the expedited licensing procedure. (See Sec. 768.8 of this 
part).
    Expedited licensing procedures. Under expedited licensing 
procedures, BXA reviews and processes a license application for the 
export of an eligible item to a non-controlled country within statutory 
time limits. Licenses are deemed approved unless BXA denies within the 
statutory time limits (See Sec. 768.8 of this part).
    Foreign availability submission (FAS). An allegation of foreign 
availability a claimant makes, supported by reasonable evidence, and 
submits to BXA. (See Sec. 768.5 of this part).
    Item. Any commodity, software, or technology.
    Items eligible for non-controlled country expedited licensing 
procedures. The items described in Supplement No. 2 to this part 768 
are eligible for the

[[Page 12916]]
expedited license procedures (See Sec. 768.8 of this part).
    National Security Override (NSO). A Presidential decision to 
maintain export controls on an item notwithstanding its foreign 
availability as determined under the EAA. The President's decision is 
based on his/her determination that the absence of the controls would 
prove detrimental to the national security of the United States. Once 
the President makes such a decision, the President must actively pursue 
negotiations to eliminate foreign availability with the governments of 
the sources of foreign availability. (See Sec. 768.7 of this part).
    Non-controlled countries. Any country not defined as a controlled 
country by this section.
    Non-U.S. source/foreign source. A person located outside the 
jurisdiction of the United States (as defined in part 772 of the EAR).
    Reasonable evidence. Relevant information that is credible.
    Reliable evidence. Relevant information that is credible and 
dependable.
    Secretary. As used in this part, the Secretary refers to the 
Secretary of Commerce or his/her designee.
    Similar quality. An item is of similar quality to an item that is 
controlled under the EAR if it is substantially alike in key 
characteristics that may include, but are not limited to: (1) Function; 
(2) technological approach; (3) performance thresholds; (4) 
maintainability and service life; and (5) any other attribute relevant 
to the purpose for which the control was placed on the item.
    Sufficient quantity. The amount of an item that would render the 
U.S. export control, or the denial of the license in question, 
ineffective in achieving its purpose. For a controlled country, it is 
the quantity that meets the military needs of that country so that U.S. 
exports of the item to that country would not make a significant 
contribution to its military potential.
    Technical Advisory Committee (TAC). A Committee created under 
section 5(h) of the EAA that advises and assists the Secretary of 
Commerce, the Secretary of Defense, and any other department, agency, 
or official of the Government of the United States to which the 
President delegates authority under the EAA on export control matters 
related to specific areas of controlled items.
    TAC certification. A statement that a TAC submits to BXA, supported 
by reasonable evidence, documented as in a FAS, that foreign 
availability to a controlled country exists for an item that falls 
within the TAC's area of technical expertise.


Sec. 768.2  Foreign availability described.

    (a) Foreign availability. Foreign availability exists when the 
Secretary determines that an item is comparable in quality to an item 
subject to U.S. national security export controls, and is available-in-
fact to a country, from a non-U.S. source, in sufficient quantities to 
render the U.S. export control of that item or the denial of a license 
ineffective. For a controlled country, such control or denial is 
``ineffective'' when maintaining such control or denying a specific 
license would not restrict the availability of items that would make a 
significant contribution to the military potential of the controlled 
country or combination of countries detrimental to the national 
security of the United States (see sections 5(a) and 3(2)(A) of the 
EAA.)
    (b) Types of foreign availability. There are two types of foreign 
availability:
    (1) Foreign availability to a controlled country; and
    (2) Foreign availability to a non-controlled country.

(Note to paragraph (b) of this section: See Sec. 768.7 of this part 
for delineation of the foreign availability assessment procedures, 
and Sec. 768.6 of this part for the criteria used in determining 
foreign availability)


Sec. 768.3  Foreign availability assessment.

    (a) Foreign availability assessment. A foreign availability 
assessment is an evidentiary analysis that BXA conducts to assess the 
foreign availability of a given item according to the assessment 
criteria, based on data submitted by a claimant, the data gathered by 
BXA, and the data and recommendations submitted by the Departments of 
Defense and State and other relevant departments and agencies, TAC 
committees, and industry. BXA uses the results of the analysis in 
formulating its recommendation to the Secretary on whether foreign 
availability exists for a given item. If the Secretary determines that 
foreign availability exists, the Secretary will decontrol the item for 
national security reasons or approve the license in question if there 
is no foreign policy reason to deny the license, unless the President 
exercises a National Security Override (see Sec. 768.7 of this part).
    (b) Types of assessments. There are two types of foreign 
availability assessments:
    (1) Denied license assessment; and
    (2) Decontrol assessment.
    (c) Expedited licensing procedures. See Sec. 768.8 of this part for 
the evaluation of eligibility of an item for the expedited licensing 
procedures.


Sec. 768.4  Initiation of an assessment.

    (a) Assessment request. To initiate an assessment, each claimant or 
TAC must submit a FAS or a TAC Certification to BXA. TACs are 
authorized to certify foreign availability only to controlled 
countries. Claimants can allege foreign availability for either 
controlled or non-controlled countries.
    (b) Denied license assessment. A claimant whose license application 
BXA has denied, or for which it has issued a letter of intent to deny 
on national security grounds, may request that BXA initiate a denied 
license assessment by submitting a Foreign Availability Submission 
(FAS) within 90 days after denial of the license. As part of its 
submission, the claimant must request that the specified license 
application be approved on the grounds of foreign availability. The 
evidence must relate to the particular export as described on the 
license application and to the alleged comparable item. If foreign 
availability is found, the Secretary will approve the license for the 
specific items, countries, and quantities listed on the application. 
The denied license assessment procedure, however, is not intended to 
result in the removal of the U.S. export control on an item by 
incrementally providing a country with amounts that, taken together, 
would constitute a sufficient quantity of an item. The Secretary will 
not approve on foreign availability grounds a denied license if the 
approval of such license would itself render the U.S. export control 
ineffective in achieving its purpose. In the case of a positive 
determination, the Secretary will determine whether a decontrol 
assessment is warranted. If so, then BXA will initiate a decontrol 
assessment.
    (c) Decontrol assessment. (1) Any claimant may at any time request 
that BXA initiate a decontrol assessment by a FAS to BXA alleging 
foreign availability to any country or countries.
    (2) A TAC may request that BXA initiate a decontrol assessment at 
any time by submitting a TAC Certification to BXA that there is foreign 
availability to a controlled country for items that fall within the 
area of the TAC's technical expertise.
    (3) The Secretary, on his/her own initiative, may initiate a 
decontrol assessment.
    (d) BXA mailing address. All foreign availability submissions and 
TAC certifications should be submitted to: Department of Commerce, 
Bureau of Export Administration, 14th Street and Pennsylvania Avenue, 
NW, Room 3877, Washington, DC 20230.

[[Page 12917]]



Sec. 768.5  Contents of foreign availability submissions and Technical 
Advisory Committee certifications.

    (a) All foreign availability submissions must contain, in addition 
to information on product or technology alleged to be available from 
foreign sources, at least:
    (1) The name of the claimant;
    (2) The claimant's mailing and business address;
    (3) The claimant's telephone number; and
    (4) A contact point and telephone number.
    (b) Foreign availability submissions and TAC certifications should 
contain as much evidence as is available to support the claim, 
including, but not limited to:
    (1) Product names and model designations of the items alleged to be 
comparable;
    (2) Extent to which the alleged comparable item is based on U.S. 
technology;
    (3) Names and locations of the non-U.S. sources and the basis for 
claiming that the item is a non-U.S. source item;
    (4) Key performance elements, attributes, and characteristics of 
the items on which a qualitative comparison may be made;
    (5) Non-U.S. source's production quantities and/or sales of the 
alleged comparable items and marketing efforts;
    (6) Estimated market demand and the economic impact of the control;
    (7) Product names, model designations, and value of U.S. controlled 
parts and components incorporated in the items alleged to be 
comparable; and
    (8) The basis for the claim that the item is available-in-fact to 
the country or countries for which foreign availability is alleged.
    (c) Supporting evidence of foreign availability may include, but is 
not limited to, the following:
    (1) Foreign manufacturers' catalogs, brochures, operation or 
maintenance manuals;
    (2) Articles from reputable trade and technical publications;
    (3) Photographs;
    (4) Depositions based on eyewitness accounts; and
    (5) Other credible evidence.

    Note to paragraph (c) of this section: See Supplement No. 1 to 
part 768 for additional examples of supporting evidence.

    (d) Upon receipt of a FAS or TAC certification, BXA will review it 
to determine whether there is sufficient evidence to support the belief 
that foreign availability may exist. If BXA determines the FAS or TAC 
certification is lacking in supporting evidence, BXA will seek 
additional evidence from appropriate sources, including the claimant or 
TAC. BXA will initiate the assessment when it determines that it has 
sufficient evidence that foreign availability may exist. Claimant and 
TAC certified assessments will be deemed to be initiated as of the date 
of such determination.
    (e) Claimants and TACs are advised to review the foreign 
availability assessment criteria described in Sec. 768.6 of this part 
and the examples of evidence described in Supplement No. 1 to part 768 
when assembling supporting evidence for inclusion in the FAS or TAC 
certification.


Sec. 768.6  Criteria.

    BXA will evaluate the evidence contained in a FAS or TAC 
certification and all other evidence gathered in the assessment process 
in accordance with certain criteria that must be met before BXA can 
recommend a positive determination to the Secretary. The criteria are 
defined in Sec. 768.1(d) of this part. In order to initiate an 
assessment, each FAS and TAC certification should address each of these 
criteria. The criteria are statutorily prescribed and are:
    (a) Available-in-fact;
    (b) Non-U.S. source;
    (c) Sufficient quantity; and
    (d) Comparable quality.


Sec. 768.7  Procedures.

    (a) Initiation of an assessment. (1) Once BXA accepts a FAS or TAC 
certification of foreign availability, BXA will notify the claimant or 
TAC that it is initiating the assessment.
    (2) BXA will publish a Federal Register notice of the initiation of 
any assessment.
    (3) BXA will notify the Departments of Defense and State, the 
intelligence community, and any other departments, agencies and their 
contractors that may have information concerning the item on which BXA 
has initiated an assessment. Each such department, agency, and 
contractor shall provide BXA all relevant information concerning the 
item. BXA will invite interested departments and agencies to 
participate in the assessment process (See paragraph (e) of this 
section).
    (b) Data gathering. BXA will seek and consider all available 
information that bears upon the presence or absence of foreign 
availability, including but not limited to that evidence described in 
Sec. 768.5 (b) and (c) of this part. As soon as BXA initiates the 
assessment, it will seek evidence relevant to the assessment, including 
an analysis of the military needs of a selected country or countries, 
technical analysis, and intelligence information from the Departments 
of Defense and State, and other U.S. agencies. Evidence is particularly 
sought from: industry sources worldwide; other U.S. organizations; 
foreign governments; commercial, academic and classified data bases; 
scientific and engineering research and development organizations; and 
international trade fairs.
    (c) Analysis. BXA will conduct its analysis by evaluating whether 
the reasonable and reliable evidence that is relevant to each of the 
foreign availability criteria provides a sufficient basis to recommend 
a determination that foreign availability does or does not exist.
    (d) Recommendation and determination. (1) Upon completion of each 
assessment, BXA, on the basis of its analysis, will recommend that the 
Secretary make a determination either that there is or that there is 
not foreign availability, whichever the evidence supports. The 
assessment upon which BXA bases its recommendation will accompany the 
recommendation to the Secretary.
    (2) BXA will recommend on the basis of its analysis that the 
Secretary determine that foreign availability exists to a country when 
the available evidence demonstrates that an item of comparable quality 
is available-in-fact to the country, from non-U.S. sources, in 
sufficient quantity so that continuation of the existing national 
security export control, or denial of the license application in 
question on national security grounds, would be ineffective in 
achieving its purpose. For a controlled country, such control or denial 
is ``ineffective'' when comparable items are available-in-fact from 
foreign sources in sufficient quantities so that maintaining such 
control or denying a license would not be effective in restricting the 
availability of items that would make a significant contribution to the 
military potential of any country or combination of countries 
detrimental to the national security of the United States.
    (3) The Secretary will make the determination of foreign 
availability on the basis of the BXA assessment and recommendation; the 
Secretary's determination will take into account the evidence provided 
to BXA, the recommendations of the Secretaries of Defense and State and 
any other interested agencies, and any other information that the 
Secretary considers relevant.

[[Page 12918]]

    (4) For all decontrol and denied license assessments (under section 
5(f)(3) of the EAA) initiated by a FAS, the Secretary will make a 
determination within 4 months of the initiation of the assessment and 
will notify the claimant. The Secretary will submit positive 
determinations for review to the appropriate departments and agencies.
    (5) The deadlines for determinations based on self-initiated and 
TAC-initiated assessments are different from the deadlines for 
claimant-initiated assessments (see paragraphs (f)(2) and (f)(3) of 
this section).
    (e) Interagency review. BXA will notify all appropriate U.S. 
agencies and Departments upon the initiation of an assessment and will 
invite their participation in the assessment process. BXA will provide 
all interested agencies and departments an opportunity to review source 
material, draft analyses and draft assessments immediately upon their 
receipt or production. For claimant-initiated assessments, BXA will 
provide a copy of all positive recommendations and assessments to 
interested agencies and departments for their review following the 
Secretary's determination of foreign availability. For self-initiated 
and TAC-initiated assessments, BXA will provide all interested agencies 
an opportunity to review and comment on the assessment.
    (f) Notification. (1) No later than 5 months after the initiation 
of an assessment based on a FAS (claimant assessments), the Secretary 
will inform the claimant in writing and will submit for publication in 
the Federal Register a notice that:
    (i) Foreign availability exists, and
    (A) The requirement of a license has been removed or the license 
application in question has been approved; or
    (B) The President has determined that for national security 
purposes the export controls must be maintained or the license 
application must be denied, notwithstanding foreign availability, and 
that appropriate steps to eliminate the foreign availability are being 
initiated; or
    (C) In the case of an item controlled multilaterally under the 
former COCOM regime, the U.S. Government will conduct any necessary 
consultations concerning the proposed decontrol or approval of the 
license with the former COCOM regime for a period of up to 4 months 
from the date of the publication of the determination in the Federal 
Register (the U.S. Government may remove the license requirement for 
exports to non-controlled countries pending completion of the former 
COCOM regime review process); or
    (ii) Foreign availability does not exist.
    (2) For all TAC certification assessments, the Secretary will make 
a foreign availability determination within 90 days following 
initiation of the assessment. BXA will prepare and submit a report to 
the TAC and to the Congress stating that:
    (i) The Secretary has found foreign availability and has removed 
the license requirement; or
    (ii) The Secretary has found foreign availability, but has 
recommended to the President that negotiations be undertaken to 
eliminate the foreign availability; or
    (iii) The Secretary has not found foreign availability.
    (3) There is no statutory deadline for assessments self-initiated 
by the Secretary or for the resulting determination. However, BXA will 
make every effort to complete such assessments and determinations 
promptly.
    (g) Foreign availability to controlled countries. When the 
Secretary determines that an item controlled for national security 
reasons is available to a controlled country and the President does not 
issue a National Security Override (NSO), BXA will submit the 
determination to the Department of State, along with a draft proposal 
for the multilateral decontrol of the item or for the former COCOM 
regime approval of the license. The Department of State will submit the 
proposal or the license for former COCOM regime review. The former 
COCOM regime will have up to 4 months for review of the proposal.
    (h) Foreign availability to non-controlled countries. If the 
Secretary determines that foreign availability to non-controlled 
countries exists, the Secretary will decontrol the item for export to 
all non-controlled countries where it is found to be available, or 
approve the license in question, unless the President exercises a 
National Security Override.
    (i) Negotiations to eliminate foreign availability. (1) The 
President may determine that an export control must be maintained 
notwithstanding the existence of foreign availability. Such a 
determination is called a National Security Override (NSO) and is based 
on the President's decision that the absence of the control would prove 
detrimental to the United States national security. Unless extended (as 
described in paragraph (i)(7) of this section), an NSO is effective for 
6 months. Where the President invokes an NSO, the U.S. Government will 
actively pursue negotiations with the government of any source country 
during the 6 month period to eliminate the availability.
    (2) There are two types of National Security Overrides:
    (i) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(f) of the EAA 
(claimant and self-initiated assessments); and
    (ii) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(h) of the EAA (TAC-
certification assessments).
    (3) For an NSO resulting from an assessment initiated under section 
5(f) of the EAA, the Secretary of any agency may recommend that the 
President exercise the authority under the EAA to retain the controls 
or deny the license notwithstanding the finding of foreign 
availability.
    (4) For an NSO resulting from an assessment initiated under section 
5(h) of the EAA, the Secretary of Commerce may recommend that the 
President exercise the authority under the EAA to retain the controls 
notwithstanding the finding of foreign availability.
    (5) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on International Relations of 
the House of Representatives will be notified of the initiation of the 
required negotiations. The notice will include an explanation of the 
national security interest that necessitates the retention of controls.
    (6) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, BXA will publish notices in the Federal 
Register consisting of:
    (i) The Secretary's determination of foreign availability;
    (ii) The President's decision to exercise the NSO;
    (iii) A concise statement of the basis for the President's 
decision; and
    (iv) An estimate of the economic impact of the decision.
    (7) The 6 month effective period for an NSO may be extended up to 
an additional 12 months if, prior to the end of the 6 months, the 
President certifies to Congress that the negotiations are progressing, 
and determines that the absence of the controls would continue to be 
detrimental to the United States national security.
    (8) After the conclusion of negotiations, BXA will retain the 
control only to the extent that foreign availability is eliminated. If 
foreign availability is not eliminated, BXA will decontrol the item by 
removing the requirement for a license for the export of the item to 
the destinations covered by the assessment. To the extent that the 
negotiations are successful and the

[[Page 12919]]
foreign availability is eliminated, BXA will remove the license 
requirement for the export of the item to any country that has agreed 
to eliminate foreign availability.
    (j) Changes in foreign availability. If BXA becomes aware of 
conditions, including new evidence, that affect a previous 
determination that foreign availability exists or does not exist, BXA 
may review the conditions. If BXA finds that the foreign availability 
previously determined no longer exists, or that foreign availability 
not earlier found now does exist, BXA will make a recommendation to the 
Secretary of Commerce for the appropriate changes in the control. The 
Secretary of Commerce will make a determination, and BXA will publish a 
Federal Register notice of the determination.


Sec. 768.8  Eligibility of expedited licensing procedures for non-
controlled countries.

    (a) BXA determines the eligibility of an item for expedited 
licensing procedures on the basis of an evaluation of the foreign 
availability of the item. Eligibility is specific to the items and the 
countries to which they are found to be available.
    (b) BXA will initiate an eligibility evaluation:
    (1) On its own initiative;
    (2) On receipt of a FAS; or
    (3) On receipt of a TAC certification.
    (c) Upon initiation of an eligibility evaluation following receipt 
of either a FAS or TAC certification, BXA will notify the claimant or 
TAC of the receipt and initiation of an evaluation and publish a 
Federal Register notice of the initiation of the evaluation.
    (d) The criteria for determining eligibility for expedited 
licensing procedures are:
    (1) The item must be available-in-fact to the specified
    non-controlled country from a foreign source;
    (2) The item must be of a quality similar to that of the U.S.-
controlled item; and
    (3) The item must be available-in-fact to the specified non-
controlled country without effective restrictions.
    (e) Within 30 days of initiation of the evaluation, the Secretary 
of Commerce will make a determination of foreign availability on the 
basis of the BXA evaluation and recommendation, taking into 
consideration the evidence the Secretaries of Defense, State, and other 
interested agencies provide to BXA and any other information that the 
Secretary considers relevant.
    (f) Within 30 days of the receipt of the FAS or TAC certification, 
BXA will publish the Secretary's determination in the Federal Register, 
that the item will or will not be eligible for expedited licensing 
procedures to the stated countries and, where appropriate, amend 
Supplement No. 2 to part 768.
    (g) Following completion of a self-initiated evaluation, BXA will 
be notified of the Secretary's determination and, where appropriate, 
Supplement No. 2 to part 768 will be amended.
    (h) Foreign availability submissions and TAC certifications to 
initiate an expedited licensing procedure evaluation must be clearly 
designated on their face as a request for expedited licensing procedure 
and must specify the items, quantities and countries alleged eligible. 
Submissions and certifications should be sent to: Department of 
Commerce, Bureau of Export Administration, 14th Street and Pennsylvania 
Avenue, NW., Room 3877, Washington, DC 20230.


Sec. 768.9  Appeals of negative foreign availability determinations.

    Appeals of negative determinations will be conducted according to 
the standards and procedures described in part 756 of the EAR. A 
Presidential decision (NSO) to deny a license or continue controls 
notwithstanding a determination of foreign availability is not subject 
to appeal.


Sec. 768.10  Removal of controls on less sophisticated items.

    Where the Secretary has removed national security controls on an 
item for foreign availability reasons, the Secretary will also remove 
controls on similar items that are controlled for national security 
reasons and whose functions, technological approach, performance 
thresholds, and other attributes that form the basis for national 
security export controls do not exceed the technical parameters of the 
item that BXA has decontrolled for foreign availability reasons.

Supplement No. 1 to Part 768--Evidence of Foreign Availability

    This Supplement provides a list of examples of evidence that the 
Bureau of Export Administration (BXA) has found to be useful in 
conducting assessments of foreign availability. A claimant submitting 
evidence supporting a claim of foreign availability should review this 
list for suggestions as evidence is collected. Acceptable evidence 
indicating possible foreign availability is not limited to these 
examples, nor is any one of these examples, usually, in and of itself, 
necessarily sufficient to meet a foreign availability criterion. A 
combination of several types of evidence for each criterion usually is 
required. A Foreign Availability Submission (FAS) should include as 
much evidence as possible on all four of the criteria listed below. BXA 
combines the submitted evidence with the evidence that it collects from 
other sources. BXA evaluates all evidence, taking into account factors 
that may include, but are not limited to: Information concerning the 
source of the evidence, corroborative or contradictory indications, and 
experience concerning the reliability or reasonableness of such 
evidence. BXA will assess all relevant evidence to determine whether 
each of the four criteria has been met. Where possible, all information 
should be in writing. If information is based on third party 
documentation, the submitter should provide such documentation to BXA. 
If information is based on oral statements a third party made, the 
submitter should provide a memorandum of the conversation to BXA if the 
submitter cannot obtain a written memorandum from the source. BXA will 
amend this informational list as it identifies new examples of 
evidence.
    (a) Examples of evidence of foreign availability:
    The following are intended as examples of evidence that BXA will 
consider in evaluating foreign availability. BXA will evaluate all 
evidence according to the provisions in Sec. 768.7(c) of this part in 
order for it to be used in support of a foreign availability 
determination. This list is illustrative only.
    (1) Available-in-fact:
    (i) Evidence of marketing of an item in a foreign country (e.g., an 
advertisement in the media of the foreign country that the item is for 
sale there);
    (ii) Copies of sales receipts demonstrating sales to foreign 
countries;
    (iii) The terms of a contract under which the item has been or is 
being sold to a foreign country;
    (iv) Information, preferably in writing, from an appropriate 
foreign government official that the government will not deny the sale 
of an item it produces to another country in accordance with its laws 
and regulations;
    (v) Information, preferably in writing, from a named company 
official that the company legally can and would sell an item it 
produces to a foreign country;
    (vi) Evidence of actual shipments of the item to foreign countries 
(e.g., shipping documents, photographs, news reports);
    (vii) An eyewitness report of such an item in operation in a 
foreign country, providing as much information as available, including 
where possible the

[[Page 12920]]
make and model of the item and its observed operating characteristics;
    (viii) Evidence of the presence of sales personnel or technical 
service personnel in a foreign country;
    (ix) Evidence of production within a foreign country;
    (x) Evidence of the item being exhibited at a trade fair in a 
foreign country, particularly for the purpose of inducing sales of the 
item to the foreign country;
    (xi) A copy of the export control laws or regulations of the source 
country, showing that the item is not controlled; or
    (xii) A catalog or brochure indicating the item is for sale in a 
specific country.
    (2) Foreign (non-U.S.) source:
    (i) Names of foreign manufacturers of the item including, if 
possible, addresses and telephone numbers;
    (ii) A report from a reputable source of information on commercial 
relationships that a foreign manufacturer is not linked financially or 
administratively with a U.S. company;
    (iii) A list of the components in the U.S. item and foreign item 
indicating model numbers and their sources;
    (iv) A schematic of the foreign item identifying its components and 
their sources;
    (v) Evidence that the item is a direct product of foreign 
technology (e.g., a patent law suit lost by a U.S. producer, a foreign 
patent);
    (vi) Evidence of indigenous technology, production facilities, and 
the capabilities at those facilities; or
    (vii) Evidence that the parts and components of the item are of 
foreign origin or are exempt from U.S. licensing requirements by the 
parts and components provision Sec. 732.4 of the EAR.
    (3) Sufficient quantity:
    (i) Evidence that foreign sources have the item in serial 
production;
    (ii) Evidence that the item or its product is used in civilian 
applications in foreign countries;
    (iii) Evidence that a foreign country is marketing in the specific 
country an item of its indigenous manufacture;
    (iv) Evidence of foreign inventories of the item;
    (v) Evidence of excess capacity in a foreign country's production 
facility;
    (vi) Evidence that foreign countries have not targeted the item or 
are not seeking to purchase it in the West;
    (vii) An estimate by a knowledgeable source of the foreign 
country's needs; or
    (viii) An authoritative analysis of the worldwide market (i.e., 
demand, production rate for the item for various manufacturers, plant 
capacities, installed tooling, monthly production rates, orders, sales 
and cumulative sales over 5-6 years).
    (4) Comparable quality:
    (i) A sample of the foreign item;
    (ii) Operation or maintenance manuals of the U.S. and foreign 
items;
    (iii) Records or a statement from a user of the foreign item;
    (iv) A comparative evaluation, preferably in writing, of the U.S. 
and foreign items by, for example, a western producer or purchaser of 
the item, a recognized expert, a reputable trade publication, or 
independent laboratory;
    (v) A comparative list identifying, by manufacturers and model 
numbers, the key performance components and the materials used in the 
item that qualitatively affect the performance of the U.S. and foreign 
items;
    (vi) Evidence of the interchangeability of U.S. and foreign items;
    (vii) Patent descriptions for the U.S. and foreign items;
    (viii) Evidence that the U.S. and foreign items meet a published 
industry, national, or international standard;
    (ix) A report or eyewitness account, by deposition or otherwise, of 
the foreign item's operation;
    (x) Evidence concerning the foreign manufacturers' corporate 
reputation;
    (xi) Comparison of the U.S. and foreign end item(s) made from a 
specific commodity, tool(s), device(s), or technical data; or
    (xii) Evidence of the reputation of the foreign item including, if 
possible, information on maintenance, repair, performance, and other 
pertinent factors.

Supplement No. 2 to Part 768--Items Eligible for Expedited Licensing 
Procedures--[Reserved]

PART 770--INTERPRETATIONS

Sec.
770.1  Introduction.
770.2  Commodity interpretations.
770.3  Interpretations related to exports of technology and software 
to destinations in Country Group D:1.
770.4  Interpretations related to chemical mixtures--de minimis 
exceptions examples.

    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. 770.1  Introduction.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. This part provides commodity, technology, 
and software interpretations. These interpretations clarify the scope 
of controls where such scope is not readily apparent from the Commerce 
Control List (CCL) (see Supplement No. 1 to part 774 of the EAR) and 
other provisions of the Export Administration Regulations.


Sec. 770.2  Commodity interpretations.

    (a) Interpretation 1: Anti-friction bearing or bearing systems and 
specially designed parts. (1) Anti-friction bearings or bearing systems 
shipped as spares or replacements are classified under Export Control 
Classification Numbers (ECCNs) 2A001, 2A002, 2A003, 2A004, 2A005, and 
2A006 (ball, roller, or needle-roller bearings and parts). This applies 
to separate shipments of anti-friction bearings or bearing systems and 
anti-friction bearings or bearing systems shipped with machinery or 
equipment for which they are intended to be used as spares or 
replacement parts.
    (2) An anti-friction bearing or bearing system physically 
incorporated in a segment of a machine or in a complete machine prior 
to shipment loses its identity as a bearing. In this scenario, the 
machine or segment of machinery containing the bearing is the item 
subject to export control requirements.
    (3) An anti-friction bearing or bearing system not incorporated in 
a segment of a machine prior to shipment, but shipped as a component of 
a complete unassembled (knocked-down) machine, is considered a 
component of a machine. In this scenario, the complete machine is the 
item subject to export license requirements.
    (b) Interpretation 2: Classification of ``parts'' of machinery, 
equipment, or other items. (1) An assembled machine or unit of 
equipment is being exported. In instances where one or more assembled 
machines or units of equipment are being exported, the individual 
component parts that are physically incorporated into the machine or 
equipment do not require a license. The license or general exception 
under which the complete machine or unit of equipment is exported will 
also cover its component parts, provided that the parts are normal and 
usual components of the machine or equipment being exported, or that 
the physical incorporation is not used as a device to evade the 
requirement for a license.
    (2) Parts are exported as spares, replacements, for resale, or for 
stock. In instances where parts are exported as spares, replacements, 
for resale, or for stock, a license is required only if the appropriate 
entry for the part specifies that a license is required for the 
intended destination.
    (c) Interpretation 3: Wire or cable cut to length. (1) Wire or 
cable may be included as a component of a system or piece of equipment, 
whether or not the

[[Page 12921]]
wire or cable is cut to length and whether or not it is fitted with 
connectors at one or both ends, so long as it is in normal quantity 
necessary to make the original installation of the equipment and is 
necessary to its operation.
    (2) Wire or cable exported as replacement or spares, or for further 
manufacture is controlled under the applicable wire or cable ECCN only. 
This includes wire or cable, whether or not cut to length or fitted 
with connectors at one or both ends.
    (d) Interpretation 4: Telecommunications equipment and systems. 
Control equipment for paging systems (broadcast radio or selectively 
signalled receiving systems) is defined as circuit switching equipment 
in Category 5 of the CCL.
    (e) Interpretation 5: Numerical control systems. (1) Classification 
of ``Numerical Control'' Units. ``Numerical control'' units for machine 
tools, regardless of their configurations or architectures, are 
controlled by their functional characteristics as described in ECCN 
2B001.a. ``Numerical control'' units include computers with add-on 
``motion control boards''. A computer with add-on ``motion control 
boards'' for machine tools may be controlled under ECCN 2B001.a even 
when the computer alone without ``motion control boards'' is not 
subject to licensing requirements under Category 4 and the ``motion 
control boards'' are not controlled under ECCN 2B001.b.
    (2) Export documentation requirement. (i) When preparing a license 
application for a numerical control system, the machine tool and the 
control unit are classified separately. If either the machine tool or 
the control unit requires a license, then the entire unit requires a 
license. If either a machine tool or a control unit is exported 
separately from the system, the exported component is classified on the 
license application without regard to the other parts of a possible 
system.
    (ii) When preparing the Shipper's Export Declaration (SED), a 
system being shipped complete (i.e., machine and control unit), should 
be reported under the Schedule B number for each machine. When either a 
control unit or a machine is shipped separately, it should be reported 
under the Schedule B number appropriate for the individual item being 
exported.
    (f) Interpretation 6: Parts, accessories, and equipment exported as 
scrap. Parts, accessories, or equipment that are being shipped as scrap 
should be described on the SED in sufficient detail to be identified 
under the proper ECCN. When commodities declared as parts, accessories, 
or equipment are shipped in bulk, or are otherwise not packaged, 
packed, or sorted in accordance with normal trade practices, the 
Customs Officer may require evidence that the shipment is not scrap. 
Such evidence may include, but is not limited to, bills of sale, orders 
and correspondence indicating whether the commodities are scrap or are 
being exported for use as parts, accessories, or equipment.
    (g) Interpretation 7: Scrap arms, ammunition, and implements of 
war. Arms, ammunition, and implements of war, as defined in the U.S. 
Munitions List, and are under the jurisdiction of the U.S. Department 
of State (22 CFR parts 120 through 130), except for the following, 
which are under the jurisdiction of the Department of Commerce:
    (1) Cartridge and shell cases that have been rendered useless 
beyond the possibility of restoration to their original identity by 
means of excessive heating, flame treatment, mangling, crushing, 
cutting, or by any other method are ``scrap''.
    (2) Cartridge and shell cases that have been sold by the armed 
services as ``scrap'', whether or not they have been heated, flame-
treated, mangled, crushed, cut, or reduced to scrap by any other 
method.
    (3) Other commodities that may have been on the U.S. Munitions List 
are ``scrap'', and therefore under the jurisdiction of the Department 
of Commerce, if they have been rendered useless beyond the possibility 
of restoration to their original identify only by means of mangling, 
crushing, or cutting. When in doubt as to whether a commodity covered 
by the Munitions List has been rendered useless, exporters should 
consult the Office of Defense Trade Controls, U.S. Department of State, 
Washington, DC 20520, or the Exporter Counseling Division, Office of 
Exporter Services, Room 1099A, U.S. Department of Commerce, Washington, 
DC 20230, before reporting a shipment as metal scrap.
    (h) Interpretation 8: Military automotive vehicles and parts for 
such vehicles. (1) Military automotive vehicles. (i) For purposes of 
U.S. export controls, military automotive vehicles ``possessing or 
built to current military specifications differing materially from 
normal commercial specifications'' may include, but are not limited to, 
the following characteristics:
    (A) Special fittings for mounting ordnance or military equipment;
    (B) Bullet-proof glass;
    (C) Armor plate;
    (D) Fungus preventive treatment;
    (E) Twenty-four volt electrical systems;
    (F) Shielded electrical system (electronic emission suppression); 
or
    (G) Puncture-proof or run-flat tires.
    (ii) Automotive vehicles fall into two categories.
    (A) Military automotive vehicles on the Munitions List, new and 
used. Automotive vehicles in this category are primarily combat 
(fighting) vehicles, with or without armor and/or armament, ``designed 
for specific fighting function.'' These automotive vehicles are 
licensed for export by the U.S. Department of State (22 CFR parts 120 
through 130).
    (B) Military automotive vehicles not on the U.S. Munitions List, 
new and used. Automotive vehicles in this category are primarily 
transport vehicles designed for non-combat military purposes 
(transporting cargo, personnel and/or equipment, and/or for to wing 
other vehicles and equipment over land and roads in close support of 
fighting vehicles and troops). These automotive vehicles are licensed 
for export by the U.S. Department of Commerce.
    (iii) Parts for military automotive vehicles. Functional parts are 
defined as those parts making up the power train of the vehicles, 
including the electrical system, the cooling system, the fuel system, 
and the control system (brake and steering mechanism), the front and 
rear axle assemblies including the wheels, the chassis frame, springs 
and shock absorbers. Parts specifically designed for military 
automotive vehicles on the Munitions List are licensed for export by 
the U.S. Department of State (22 CFR parts 120 through 130).
    (iv) General instructions. Manufacturers of non-Munitions List 
automotive vehicles and/or parts will know whether their products meet 
the conditions described in this paragraph (h). Merchant exporters and 
other parties who are not sure whether their products (automotive 
vehicles and/or parts) meet these conditions should check with their 
suppliers for the required information before making a shipment under 
general exception or submitting an application to BXA for a license.
    (2) [Reserved]
    (i) Interpretation 9: Aircraft, parts, accessories and components. 
Aircraft, parts, accessories, and components defined in Categories VIII 
and IX of the Munitions List are under the export licensing authority 
of the U.S. Department of State (22 CFR parts 120 through 130). All 
other aircraft, and parts, accessories and components therefor, are 
under the export licensing

[[Page 12922]]
authority of the U.S. Department of Commerce. The following aircraft, 
parts, accessories and components are under the licensing authority of 
the U.S. Department of Commerce:
    (1) Any aircraft (except an aircraft that has been demilitarized, 
but including aircraft specified in paragraph (i)(2) of this section) 
that conforms to a Federal Aviation Agency type certificate in the 
normal, utility, acrobatic, transport, or restricted category, provided 
such aircraft has not been equipped with or modified to include 
military equipment, such as gun mounts, turrets, rocket launchers, or 
similar equipment designed for military combat or military training 
purposes.
    (2) Only the following military aircraft, demilitarized (aircraft 
not specifically equipped, reequipped, or modified for military 
operations):
    (i) Cargo, bearing designations ``C-45 through C-118 inclusive,'' 
and ``C-121'';
    (ii) Trainers, bearing a ``T'' designation and using piston 
engines;
    (iii) Utility, bearing a ``U'' designation and using piston 
engines;
    (iv) Liaison, bearing an ``L'' designation; and
    (v) Observation, bearing an ``O'' designation and using piston 
engines.
    (3) All reciprocating engines.
    (4) Other aircraft engines not specifically designed or modified 
for military aircraft.
    (5) Parts, accessories, and components (including propellers), 
designed exclusively for aircraft and engines described in paragraphs 
(i)(1), (i)(2), (i)(3), and (i)(4) of this section.
    (6) General purpose parts, accessories, and components usable 
interchangeably on either military or civil aircraft.
    (j) Interpretation 10: Civil aircraft inertial navigation 
equipment. (1) The Department of Commerce has licensing jurisdiction 
over exports and reexports to all destinations of inertial navigation 
systems, inertial navigation equipment, and specially designed 
components therefor for ``civil aircraft''.
    (2) The Department of State, retains jurisdiction over all software 
and technology for inertial navigation systems and navigation 
equipment, and specially designed components therefor, for shipborne 
use, underwater use, ground vehicle use, spaceborne use or use other 
than ``civil aircraft''.
    (k) Interpretation 11: Precursor chemicals. The following chemicals 
are controlled by ECCN 1C350. The appropriate Chemical Abstract Service 
Registry (C.A.S.) number and synonyms, (i.e., alternative names) are 
included to help you determine whether your chemicals are controlled by 
this entry. These chemicals require a license to all countries except 
Argentina, Australia, Austria, Belgium, Canada, Denmark, Czech 
Republic, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, 
Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

(1) (C.A.S. #1341-49-7) Ammonium hydrogen bifluoride
    Acid ammonium fluoride
    Ammonium bifluoride
    Ammonium difluoride
    Ammonium hydrofluoride
    Ammonium hydrogen bifluoride
    Ammonium hydrogen difluoride
    Ammonium monohydrogen difluoride
(2) (C.A.S. #7784-34-1) Arsenic trichloride
    Arsenic (III) chloride
    Arsenous chloride
    Fuming liquid arsenic
    Trichloroarsine
(3) (C.A.S. #76-93-7) Benzilic acid
    .alpha.,.alpha.-Diphenyl-.alpha.-hydroxyacetic acid
    Diphenylglycolic acid
    .alpha.,.alpha.-Diphenylglycolic acid
    Diphenylhydroxyacetic acid
    .alpha.-Hydroxy-2,2-diphenylacetic acid
    2-Hydroxy-2,2-diphenylacetic acid
    .alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid
    Hydroxydiphenylacetic acid
(4) (C.A.S. #107-07-3) 2-Chloroethanol
    2-Chloro-1-ethanol
    Chloroethanol
    2-Chloroethyl alcohol
    Ethene chlorohydrin
    Ethylchlorohydrin
    Ethylene chlorhydrin
    Ethylene chlorohydrin
    Glycol chlorohydrin
    Glycol monochlorohydrin
    2-Hydroxyethyl chloride
(5) (C.A.S. #78-38-6) Diethyl ethylphosphonate Ethylphosphonic acid 
diethyl ester
(6) (C.A.S. #15715-41-0) Diethyl methylphosphonite
    Diethoxymethylphosphine
    Diethyl methanephosphonite
    0,0-Diethyl methylphosphonite
    Methyldiethoxyphosphine
    Methylphosphonous acid diethyl ester
(7) (C.A.S. #2404-03-7) Diethyl-N, N-dimethylphosphoro-amidate
    N,N-Dimethyl-O,O'-diethyl phosphoramidate
    Diethyl dimethylphosphoramidate
    Dimethylphosphoramidic acid diethyl ester
(8) (C.A.S. #762-04-9) Diethyl phosphite
    Diethoxyphosphine oxide
    Diethyl acid phosphite
    Diethyl hydrogen phosphite
    Diethyo phosphonate
    Hydrogen diethyl phosphite
(9) (C.A.S. #100-37-8) N, N-Diethylethanolamine
    N,N-Diethyl-2-aminoethanol
    Diethyl (2-hydroxyethyl) amine
    N,N-Diethyl-N-(.beta.-hydroxyethyl) amine
    N,N-Diethyl-2-hydroxyethylamine
    Diethylaminoethanol
    2-(Diethylamino) ethanol
    2-(Diethylamino)ethyl alcohol
    N,N-Diethylmonoethanolamine
    (2-Hydroxyethyl) diethylamine
    2-Hydroxytriethylamine
(10) (C.A.S. #5842-07-9) N,N-Diisopropyl-.beta.-aminoethane thiol
    2-(Diisopropylamino) ethanethiol
    Diisopropylaminoethanethiol
    .beta.-Diisopropylaminoethanethiol
    2-(bis(1-Methylethyl)amino) ethanethiol
(11) (C.A.S. #4261-68-1) N, N-Diisopropyl-.2-aminoethyl chloride 
hydrochloride
(12) (C.A.S. #96-80-0) N,N-Diisopropyl-.beta.-aminoethanol
    N,N-Diisopropyl-2-aminoethanol
    2-(Diisopropylamino) ethanol
    (N,N-Diisopropylamino) ethanol
    2-(Diisopropylamino) ethyl alcohol
    N,N-Diisopropylethanolamine
(13) (C.A.S. #96-79-7) N,N-Diisopropyl-.beta.-aminoethyl chloride
    2-Chloro-N,N-diisopropylethanamine
    1-Chloro-N,N-diisopropylaminoethane
    2-Chloro-N,N-diisopropylethylamine
    N-(2-chloroethyl)-N-(1-methylethyl)-2-propanamine
    N-(2-Chloroethyl) diisopropylamine
    N,N-Diisopropyl-2-chloroethylamine
    1-(Diisopropylamino)-2-cholorethane
    2-(Diisopropylamino)ethyl chloride
    Diisopropylaminoethyl chloride
    .beta.-Diisopropylaminoethyl chloride
(14) (C.A.S. #108-18-9) Diisopropylamine
    N,N-Diisopropylamine
    N-(1-Methylethyl)-2-propanamine
(15) (C.A.S. #6163-75-3) Dimethyl ethylphosphonate
    Dimethyl ethanephosphonate
    Ethylphosphonic acid dimethyl ester
(16) (C.A.S. #756-79-6) Dimethyl methylphosphonate
    Dimethoxymethyl phosphine oxide
    Dimethyl methanephosphonate
    Methanephosphonic acid dimethyl ester
    Methylphosphonic acid dimethyl ester
(17) (C.A.S. #868-85-9) Dimethyl phosphite
    Dimethoxyphosphine oxide
    Dimethyl acid phosphite
    Dimethyl hydrogen phosphite
    
[[Page 12923]]

    Dimethyl phosphonate
    Hydrogen dimethyl phosphite
    Methyl phosphate
(18) (C.A.S. #124-40-3) Dimethylamine
    N-Methyl methanamine
(19) (C.A.S. #506-59-2) Dimethylamine hydrochloride
    Dimethylammonium chloride
    N-Methyl methanamine hydrochloride
(20) (C.A.S. #57856-11-8) O-Ethyl-2-diisoprophylaminoethyl 
methylphosphonite (QL)
    Methylphosphonous acid 2-(bis(1-methylethyl)amino)ethyl ethyl ester
(21) (C.A.S. #1498-40-4) Ethylphosphonous dichloride
    Dichloroethylphosphine
    Ethyl phosphonous dichloride
    Ethyldichlorophosphine
(22) (C.A.S. #430-78-4) Ethylphosphonus difluoride
    Ethyldifluorophosphine
(23) (C.A.S. #1066-50-8) Ethylphosphonyl dichloride
    Dichloroethylphosphine oxide
    Ethanephosphonyl chloride
    Ethylphosphinic dichloride
    Ethylphosphonic acid dichloride
    Ethylphosphonic dichloride
(24) (C.A.S. #753-98-0) Ethylphosphonyl difluoride
    Ethyl difluorophosphite
    Ethyldifluorophosphine oxide
    Ethylphosphonic difluoride
(25) (C.A.S. #7664-39-3) Hydrogen fluoride
    Anhydrous hydrofluoric acid
    Fluorhydric acid
    Fluorine monohydride
    Hydrofluoric acid gas
(26) (C.A.S. #3554-74-3) 3-Hydroxyl-1-methylpiperidine
    3-Hydroxy-N-methylpiperidine
    1-Methyl-3-hydroxypiperidine
    N-Methyl-3-hydroxypiperidine
    1-Methyl-3-piperidinol
    N-Methyl-3-piperidonol
(27) (C.A.S. #76-89-1) Methyl benzilate
    Benzilic acid methyl ester
    .alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid methyl ester
    Methyl .alpha.-phenylmandelate
    Methyl diphenylglycolate
(28) (C.A.S. #676-83-5) Methylphosphonous dichloride
    Dichloromethylphosphine
    Methyldichlorophosphine
    Methylphosphorus dichloride
(29) (C.A.S. #753-59-3) Methylphosphonous diflouride
    Difluoromethylphosphine
    Methyldifluorophosphine
(30) (C.A.S. #676-97-1) Methylphosphonyl dichloride
    Dichloromethylphosphine oxide
    Methanephosphonodichloridic acid
    Methanephosphonyl chloride
    Methylphosphonic acid dichloride
    Methylphosphonic dichloride
    Methylphosphonodichloridic acid
    Methylphosphonyl chloride
(31) (C.A.S. #676-99-3) Methylphosphonyl difluoride
    Difluoromethylphosphine oxide
    Methyl difluorophosphite
    Methylphosphonic difluoride
(32) (C.A.S. #10025-87-3) Phosphorus oxychloride
    Phosphonyl trichloride
    Phosphoric chloride
    Phosphoric trichloride
    Phosphoroxychloride
    Phosphoroxytrichloride
    Phosphorus chloride oxide
    Phosphorus monoxide trichloride
    Phosphorus oxide trichloride
    Phosphorus oxytrichloride
    Phosphorus trichloride oxide
    Phosphoryl trichloride
    Trichlorophosphine oxide
    Trichlorophosphorus oxide
(33) (C.A.S. #10026-13-8) Phosphorus pentachloride
    Pentachlorophosphorane
    Pentachlorophosphorus
    Phosphoric chloride
    Phosphorus(V) chloride
    Phosphorus perchloride
(34) (C.A.S. #1314-80-3) Phosphorus pentasulfide
    Diphosphorus pentasulfide
    Phosphoric sulfide
    Phosphorus persulfide
    Phosphorus sulfide
(35) (C.A.S. #7719-12-2) Phosphorus trichloride
    Phosphorus chloride
    Trichlorophosphine
(36) C.A.S. #75-97-8) Pinacolone
    tert-Butyl methyl ketone
    2,2-Dimethyl-3-butanone
    3,3-Dimethyl-2-butanone
    2,2-Dimethylbutanone
    3,3-Dimethylbutanone
    1,1-Dimethylethyl methyl ketone
    Methyl tert-butyl ketone
    Pinacolin
    Pinacoline
    1,1,1-Trimethylacetone
(37) (C.A.S. #464-07-3) Pinacolyl alcohol
    tert-Butyl methyl carbinol
    2,2-Dimethyl-3-butanol
    3,3-Dimethyl-2-butanol
    1-Methyl-2,2-dimethylpropanol
(38) (C.A.S. #151-50-8) Potassium cyanide
(39) (C.A.S. #7789-23-3) Potassium fluoride
    Potassium monofluoride
(40) (C.A.S. #7789-29-9) Potassium hydrogen fluoride
    Hydrogen potassium difluoride
    Hydrogen potassium fluoride
    Potassium acid fluoride
    Potassium bifluoride
    Potassium hydrogen difluoride
    Potassium monohydrogen difluoride
(41) (C.A.S. #1619-34-7) 3-Quinuclidinol
    1-Azabicyclo(2.2.2)octan-3-ol
    3-Hydroxyquinuclidine
(42) (C.A.S. #3731-38-2) 3-Quinuclidinone
    1-Azabicyclo(2.2.2)octan-3-one
    3-Oxyquinuclidine
    Quinuclidone
(43) (C.A.S.) #1333-83-1) Sodium bifluoride
    Sodium hydrogen difluoride
    Sodium hydrogen fluoride
(44) (C.A.S. #143-33-9) Sodium cyanide
(45) (C.A.S. #7681-49-4) Sodium fluoride
    Sodium monofluoride
(46) (C.A.S. #1313-82-2) Sodium sulfide
    Disodium monosulfide
    Disodium sulfide
    Sodium monosulfide
    Sodium sulphide
(47) (C.A.S. #10025-67-9) Sulfur Monochloride
(48) (C.A.S. #10545-99-0) Sulfur dicholoride
(49) (C.A.S. #111-48-8) Thiodiglycol
    Bis(2-hydroxyethyl) sulfide
    Bis(2-hydroxyethyl) thioether
    Di(2-hydroxyethyl) sulfide
    Diethanol sulfide
    2,2'-Dithiobis-(ethanol)
    3-Thiapentane-1,5-diol
    2,2'-Thiobisethanol
    2,2'-Thiodiethanol
    Thiodiethylene glycol
    2,2'-Thiodiglycol
(50) C.A.S. #7719-09-7) Thionyl chloride
    Sulfinyl chloride
    Sulfinyl dichloride
    Sulfur chloride oxide
    Sulfur oxychloride
    Sulfurous dichloride
    Sulfurous oxychloride
    Thionyl dichloride
(51) (C.A.S. #102-71-6) Triethanolamine
    Alkanolamine 244
    Nitrilotriethanol
    2,2',2''-Nitrilotriethanol
    2,2',2''-Nitrilotris(ethanol)
    TEA
    TEA (amino alcohol)
    Tri (2-hydroxyethyl) amine
    Triethanolamin
    Tris (.beta.-hydroxyethyl) amine
    Tris (2-hydroxyethyl) amine
    Trolamine
(52) (C.A.S. #637-39-8) Triethanolamine hydrochloride
(53) (C.A.S. #122-52-1) Triethyl phosphite
    Phosphorous acid triethyl ester
    Triethoxyphosphine
    Tris(ethoxy)phosphine
    
[[Page 12924]]

(54) (C.A.S. #121-45-9) Trimethyl phosphite
    Phosphorus acid trimethyl ester
    Trimethoxyphosphine


Sec. 770.3  Interpretations related to exports of technology and 
software to destinations in Country Group D:1.

    (a) Introduction. This section is intended to provide you 
additional guidance on how to determine whether your technology or 
software would be eligible for a License Exception, may be exported 
under NLR, or require a license, for export to Country Group D:1.
    (b) Scope of licenses. The export of technology and software under 
a license is authorized only to the extent specifically indicated on 
the face of the license. The only technology and software related to 
equipment exports that may be exported without a license is technology 
described in Secs. 734.7 through 734.11 of the EAR; operating 
technology and software described in Sec. 740.8(a) of the EAR; sales 
technology described in Sec. 740.8(b) of the EAR; and software updates 
described in Sec. 740.8(c) of the EAR.
    (c) Commingled technology and software. (1) U.S.-origin technology 
does not lose its U.S.-origin when it is redrawn, used, consulted, or 
otherwise commingled abroad in any respect with other technology of any 
other origin. Therefore, any subsequent or similar technical data 
prepared or engineered abroad for the design, construction, operation, 
or maintenance of any plant or equipment, or part thereof, which is 
based on or utilizes any U.S.-origin technology, is subject to the EAR 
is the same manner as the original U.S.-origin technology, including 
license requirements, unless the commingled technology is not subject 
to the EAR by reason of the de minimis exclusions described at 
Sec. 732.4 of the EAR.
    (2) U.S.-origin software that is incorporated into or commingled 
with foreign-origin software does not lose its U.S.-origin. Such 
commingled software is subject to the EAR is the same manner as the 
original U.S.-origin software, including license requirements, unless 
the commingled software is not subject to the EAR by reason of the de 
minimis exclusions described at Sec. 732.4 of the EAR.
    (d) Certain License Exception. The following questions and answers 
are intended to further clarify the scope of technology and software 
eligible for a License Exception.
    (1)(i) Question 1. (A) Our engineers, in installing or repairing 
equipment, use techniques (experience as well as proprietary knowledge 
of the internal componentry or specifications of the equipment) that 
exceed what is provided in the standard manuals or instructions 
(including training) given to the customer. In some cases, it is also a 
condition of the license that such information provided to the customer 
be constrained to the minimum necessary for normal installation, 
maintenance and operation situations.
    (B) Can we send an engineer (with knowledge and experience) to the 
customer site to perform the installation or repair, under the 
provisions of License Exception for operating technology and software 
(OTS) described in Sec. 740.8(a) of the EAR, if it is understood that 
he is restricted by our normal business practices to performing the 
work without imparting the knowledge or technology to the customer 
personnel?
    (ii) Answer 1. Export of technology includes release of U.S.-origin 
data in a foreign country, and ``release'' includes ``application to 
situations abroad of personal knowledge or technical experience 
acquired in the United States.'' As the release of technology in the 
circumstances described here would exceed that permitted under the 
License Exception for operating technology and software described in 
Sec. 740.8(a) of the EAR, a license would be required even though the 
technician could apply the data without disclosing it to the customer.
    (2)(i) Question 2. We plan, according to our normal business 
practices, to train customer engineers to maintain equipment that we 
have exported under a license, License Exception, or NLR. The training 
is contractual in nature, provided for a fee, and is scheduled to take 
place in part in the customer's facility and in part in the U.S. Can we 
now proceed with this training at both locations under a License 
Exception?
    (ii) Answer 2. (A) Provided that this is your normal training, and 
involves technology contained in your manuals and standard instructions 
for the exported equipment, and meets the other requirements of License 
Exception for operating technology and software (OTS) described in 
Sec. 740.8(a), the training may be provided within the limits of that 
License Exception. The location of the training is not significant, as 
the export occurs at the time and place of the actual transfer or 
imparting of the technology to the customer's engineers.
    (B) Any training beyond that covered under the provisions of 
License Exception for operating technology and software (OTS) described 
in Sec. 740.8(a), but specifically represented in your license 
application as required for this customer installation, and in fact 
authorized on the face of the license or a separate technology license, 
may not be undertaken while the license is suspended or revoked.


Sec. 770.4  Interpretations related to chemical mixtures--de minimis 
exceptions examples.

    (a)(1) Introduction: The following are examples for applying the de 
minimis exceptions for chemical mixtures containing precursor and 
intermediate chemicals controlled under ECCN 1C350.
    (2) In ECCN 1C350, Note 2, paragraphs (c) and (d) within the 
Mixtures Exemptions state that a validated license is required when at 
least one of the listed chemicals constitutes more than 10% or 25%, 
respectively, of the weight of the mixture on a solvent free basis.
    (b)(1) Example One. A mixture contains the following components:
    (i) 90% polymer polyol (a liquid raw material used to make 
polyurethane polymers); and
    (ii) 10% Australia Group (AG)-controlled chemical eligible for 25% 
de minimis exemption.

    Note to paragraph (b) of this section: The polymer does not 
dissolve the AG-controlled chemical.

    (2) In this example, the polymer polyol does not dissolve the AG-
controlled chemical (the only other component of the mixture). 
Therefore, the polyol is NOT considered a solvent, and the 
concentration of the polymer polyol is included in the concentration 
calculation. As a result, the AG-controlled chemical's concentration is 
10% when calculated on a solvent-free basis (.10/1.00). Accordingly, 
this concentration is below the threshold concentration of 25% 
applicable to specific AG-controlled chemicals under the chemical 
mixtures rule and can be exported under NLR to all destinations except 
Iran, Sudan, Syria, and Country Group E:2 in Supplement No. 1 to part 
740 of the EAR.
    (3) To determine the classification of this mixture, it is 
necessary to determine whether the polymer is capable of functioning as 
a solvent for the other components of the mixture. If the polymer 
polyol is capable of functioning as a solvent for the controlled AG 
chemical, then the polymer component is omitted from the concentration 
calculation. If the polymer polyol is not capable of functioning as a 
solvent for the AG chemical, then the polymer component is included in 
the concentration calculation.

[[Page 12925]]

    (c)(1) Example Two: An automotive coolant (antifreeze) is a mixture 
of the following components:
    (i) 75% ethylene glycol;
    (ii) 10% additive package; and
    (iii) 15% water.

    Note to paragraph (c) of this section: The ``additive package'' 
contains an AG-controlled chemical that is eligible for the 10% de 
minimis exemption. This chemical is added as a stabilizer and 
represents 9% of the total mixture. The remaining components of the 
additive package are various dyes and stabilizers that represent 1% 
of the total mixture. Ethylene glycol serves as the basic functional 
ingredient that prevents the engine block from freezing, and does 
not dissolve the other components of the mixture. The water is added 
to keep the mixture in solution.

    (2) To determine if this mixture requires a license it is necessary 
to calculate the concentration of the AG-controlled chemical on a 
solvent-free basis. Since the water dissolves all of the other 
components of the mixture, water is considered a ``solvent'' and the 
quantity of water present is not included in the calculation of the AG-
chemical concentration. Consequently, the concentration of the AG 
chemical is approximately 11% (.09/.85), and the mixture is classified 
under ECCN 1C350. Accordingly, since this concentration is above the 
threshold concentration of 10% applicable to this category of AG-
controlled chemical under the chemical mixtures rule, a license is 
required to all destinations except AG member countries.
    (d)(1) Example Three. A pesticide formulation consists of an AG-
controlled chemical that is eligible for the 25% de minimis exemption, 
and an active ingredient that is not AG-controlled. The formulation is 
diluted with water to allow safe, effective, and economic application. 
The resulting mixture is 15% AG chemical, 40% active ingredient and 45% 
water. Although the water is added as a diluent, it dissolves the other 
components of the mixture.
    (2) Since the water dissolves all components in the mixture, it is 
considered a solvent even though it was added as a diluent. The percent 
concentration of the AG-controlled chemical calculated on a solvent 
free basis is .15/.55 = 27%, and the mixture is therefore classified 
under ECCN 1C350. Accordingly, since this concentration is above the 
threshold concentration of 25% applicable to this category of AG-
controlled chemicals under the chemical mixtures rule, a license is 
required to all destinations except AG member countries.
    (e)(1) Example Four. A mixture contains the following components:
    (i) 10% water;
    (ii) 22% Chemical A;
    (iii) 21% Chemical B;
    (iv) 20% Chemical C;
    (v) 19% Chemical D; and
    (vi) 8% Chemical E.

    Note to paragraph (e) of this section: The water is added to 
dissolve the other components of the mixture. Chemicals A, B, C, and 
D are AG-controlled chemicals each eligible for 25% de minimis 
exemption. Chemical E is an AG-controlled chemical eligible for 10% 
de minimis exemption.

    (2) In this example, water is considered a solvent since it 
dissolves all components in the mixture. Therefore, the quantity of 
water present in the mixture is not included in calculating the 
concentrations of the controlled chemicals on a solvent-free basis. The 
concentrations of the controlled chemicals are as follows: Chemical A 
24%; Chemical B 23%; Chemical C 22%; Chemical D 21%; Chemical E 9%. It 
is important to note that in this example, even though the cumulative 
amount of the mixture (90%) consists of controlled chemicals, each one 
of the controlled chemicals is below the de minimis level for its 
category. Consequently, this mixture can be exported under NLR to all 
destinations except Iran, Sudan, Syria, and Country Group E:2 in 
Supplement No. 1 to part 740 of the EAR.

PART 772--DEFINITIONS OF TERMS

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August 
15, 1995 (60 FR 42767, August 17, 1995).

    The following are definitions of terms as used in the Export 
Administration Regulations (EAR). In this part, references to the EAR 
are references to 15 CFR chapter VII, subchapter C. Those terms in 
quotation marks refer to terms used on the Commerce Control List (CCL) 
(Supplement No. 1 to part 774 of the EAR). Parenthetical references 
following the terms in quotation marks (i.e., (Cat 5)) refer to the CCL 
category in which that term is found.
    ``ATM.'' (Cat 5)--See ``Asynchronous Transfer Mode.''
    ``Accuracy.'' (Cat 2 and 6)--``Accuracy'' is usually measured in 
terms of inaccuracy. It is defined as the maximum deviation, positive 
or negative, of an indicated value from an accepted standard or true 
value.
    ``Active flight control systems.'' (Cat 7)--Function to prevent 
undesirable ``aircraft'' and ``missile'' motions or structural loads by 
autonomously processing outputs from multiple sensors and then 
providing necessary preventive commands to effect automatic control.
    ``Active pixel.'' (Cat 6 and 8)--A maximum (single) element of the 
solid state array that has a photoelectric transfer function when 
exposed to light (electromagnetic) radiation.
    ``Adaptive control.'' (Cat 2)--A control system that adjusts the 
response from conditions detected during the operation (Ref. ISO 2806-
1980).
    Advisory Committee on Export Policy (ACEP). The ACEP voting members 
include the Assistant Secretary of Commerce for Export Administration, 
and Assistant Secretary-level representatives from the Departments of 
State, Defense, Energy, and the Arms Control and Disarmament Agency. 
The appropriate representatives of the Joint Chiefs of Staff and the 
Director of the Nonproliferation Center of the Central Intelligence 
Agency are non-voting members. The Assistant Secretary of Commerce for 
Export Administration is the Chair. Appropriate acting Assistant 
Secretary, Deputy Assistant Secretary or equivalent of any agency or 
department may serve in lieu of the Assistant Secretary of the 
concerned agency or department. Such representatives, regardless of 
rank, will speak and vote on behalf of their agencies or departments. 
The ACEP may invite Assistant Secretary-level representatives of other 
Government agencies or departments (other than those identified above) 
to participate in the activities of the ACEP when matters of interest 
to such agencies or departments are under consideration. Decisions are 
made by majority vote.
    ``Aircraft.'' (Cat 7 and 9)--A fixed wing, swivelwing, rotary wing 
(helicopter), tilt rotor or tilt-wing airborne vehicle. (See also 
``civil aircraft''.)
    Airline. Any person engaged primarily in the transport of persons 
or property by aircraft for compensation or hire, pursuant to 
authorization by the U.S. Government or a foreign government.
    ``Angular position deviation.'' (Cat 2)--The maximum difference 
between angular position and the actual, very accurately measured 
angular position after the workpiece mount of the table has been turned 
out of its initial position. (Reference: VDI/VDE 2617, Draft: ``Rotary 
tables on coordinate measuring machines'').
    Applicant. That person who, as the principal party in interest in 
the transaction, has the power and responsibility for determining and 
controlling the sending of the item out of the country and is thus, in 
reality, the exporter. (For additional information see Sec. 748.4 of 
the EAR.) (See also ``U.S. exporter''.)

[[Page 12926]]

    ``Assembly.'' (Cat 3 and 4)--A number of electronic components 
(i.e.,''circuit elements'', ``discrete components'', integrated 
circuits, etc.) connected together to perform (a) specific function(s), 
replaceable as an entity and normally capable of being disassembled.

    Notes: 1. ``Circuit element'': a single active or passive 
functional part of an electronic circuit, such as one diode,one 
transistor, one resistor, one capacitor, etc.
    2. ``Discrete component'': a separately packaged ``circuit 
element'' with its own external connections.

    ``Asynchronous transfer mode.'' (ATM) (Cat 5)--A transfer mode in 
which the information is organized into cells; it is asynchronous in 
the sense that the recurrence of cells depends on the required or 
instantaneous bit rate. (CCITT Recommendation L.113)
    Australia Group. The members belonging to this group have agreed to 
adopt controls on dual-use chemicals, i.e., weapons precursors, 
equipment, and biological microorganisms and related equipment in order 
to prevent the proliferation of chemical and biological weapons. Member 
countries as of November 1, 1995 include: Argentina, Australia, 
Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, 
the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak 
Republic, Spain, Sweden, Switzerland, the United Kingdom, and the 
United States. See also Sec. 742.2 of the EAR.
    ``Automatic target tracking.'' (Cat 6)--A processing technique that 
automatically determines and provides as output an extrapolated value 
of the most probable position of the target in real time.
    ``Bandwidth of one voice channel.'' (Cat 5)--In the case of data 
communication equipment designed to operate in one voice channel of 
3,100 Hz, as defined in CCITT Recommendation G.151.
    ``Basic gate propagation delay time.'' (Cat 3)--The propagation 
delay time value corresponding to the basic gate utilized within a 
``family'' of ``monolithic integrated circuits''. This may be 
specified, for a given ``family'', either as the propagation delay time 
per typical gate or as the typical propagation delay time per gate.

    Note: ``Basic gate propagation delay time'' is not to be 
confused with input/output delay time of a complex ``monolithic 
integrated circuit''.

    ``Basic Scientific Research.'' (GTN)--Experimental or theoretical 
work undertaken principally to acquire new knowledge of the fundamental 
principles of phenomena or observable facts, not primarily directed 
towards a specific practical aim or objective.
    ``Beat length.'' (Cat 6)--The distance over which two orthogonally 
polarized signals, initially in phase, must pass in order to achieve a 
2 Pi radian(s) phase difference.
    ``Bias.'' (accelerometer) (Cat 7)--An accelerometer output when no 
acceleration is applied.
    Bill of Lading. The contract of carriage and receipt for items, 
issued by the carrier. It includes an air waybill, but does not include 
an inland bill of lading or a domestic air waybill covering movement to 
port only.
    CCL. See Commerce Control List.
    CCL Group. The Commerce Control List (CCL) is divided into 10 
categories. Each category is subdivided into five groups, designated by 
letters A through E: (A) Equipment, assemblies, and components; (B) 
Test, production, and inspection equipment; (C) Materials; (D) 
Software; and (E) Technology. See Sec. 738.2(b) of the EAR.
    ``CE.''--See ``Computing Element.''
    ``CTP.''--See ``Composite theoretical performance.'' This term may 
also appear without quotation marks.
    ``Camming.'' (axial displacement) (Cat 2)--Axial displacement in 
one revolution of the main spindle measured in a plane perpendicular to 
the spindle faceplate, at a point next to the circumference of the 
spindle faceplate (Ref.: ISO 230 Part 1-1986, paragraph 5.63).
    Canadian airline. Any citizen of Canada who is authorized by the 
Canadian Government to engage in business as an airline. For purposes 
of this definition, a Canadian citizen is:
    (a) A natural person who is a citizen of Canada; or
    (b) A partnership of which each member is such an individual; or
    (c) A Canadian firm incorporated or otherwise organized under the 
laws of Canada or any Canadian province, having a total foreign stock 
interest not greater than 40 percent and having the Chairman or Acting 
Chairman and at least two-thirds of the Directors thereof Canadian 
citizens.
    ``Capable of.'' (MTCR context)--See ``usable in''.
    Category. The Commerce Control List is divided into 10 categories: 
(0) Nuclear Materials, Facilities, and Equipment, and Miscellaneous; 
(1) Materials, Chemicals, ``Microorganisms,'' and Toxins; (2) Materials 
Processing; (3) Electronics; (4) Computers; (5) Telecommunications and 
Information Security; (6) Lasers and Sensors; (7) Navigation and 
Avionics; (8) Marine; and (9) Propulsion Systems, Space Vehicles, and 
Transportation Equipment. See Sec. 738.2(a) of the EAR.
    ``Chemical laser.'' (Cat 6)--A ``laser'' in which the excited 
species is produced by the output energy from a chemical reaction.
    ``Circulation.'' (controlled, anti-torque direction control 
systems) (Cat 7)--Use air blown over aerodynamic surfaces to increase 
or control the forces generated by the surfaces.
    ``Civil aircraft.'' (Cat 7 and 9)--Only those ``aircraft'' listed 
by designation in published airworthiness certification lists by the 
civil aviation authorities to fly commercial civil internal and 
external routes or for legitimate civil, private or business use. (See 
also ``aircraft'')
    COCOM (Coordinating Committee on Multilateral Export Controls). A 
multilateral organization that cooperated in restricting strategic 
exports to controlled countries. COCOM was officially disbanded on 
March 31, 1994. COCOM members included the NATO countries, except 
Iceland, plus Japan and Australia.
    Commerce Control List (CCL). A list of items under the export 
control jurisdiction of the Bureau of Export Administration, U.S. 
Department of Commerce. Note that certain additional items described in 
part 732 of the EAR are also subject to the EAR. The CCL is found in 
Supplement No. 1 to part 774 of the EAR.
    ``Commingled.'' (Cat 1)--Filament to filament blending of 
thermoplastic fibers and reinforcement fibers in order to produce a 
fiber reinforcement/matrix mix in total fiber form.
    ``Comminution.'' (Cat 1)--A process to reduce a material to 
particles by crushing or grinding.
    Commodity. Any article, material, or supply except technology and 
software.
    ``Common channel signalling.'' (Cat 5)--A signalling method in 
which a single channel between exchanges conveys, by means of labelled 
messages, signalling information relating to a multiplicity of circuits 
or calls and other information such as that used for network 
management.
    ``Communications channel controller.'' (Cat 5)--The physical 
interface that controls the flow of synchronous or asynchronous digital 
information. It is an assembly that can be integrated into computer or 
telecommunications equipment to provide communications access.
    ``Composite.'' (Cat 1, 6, 8, and 9)--A ``matrix'' and an additional 
phase or additional phases consisting of particles, whiskers, fibers or 
any

[[Page 12927]]
combination thereof, present for a specific purpose or purposes.
    ``Composite theoretical performance.'' (CTP) (Cat 4)--A measure of 
computational performance given in millions of theoretical operations 
per second (Mtops), calculated using the aggregation of ``computing 
elements (CE)''. (See Category 4, Technical Note.) This term may also 
appear without quotation marks. The formula to calculate the CTP is 
contained in a technical note titled ``Information on How to Calculate 
``Composite Theoretical Performance'' at the end of Category 4 of the 
CCL.
    ``Compound rotary table.'' (Cat 2)--A table allowing the workpiece 
to rotate and tilt about two non-parallel axis that can be coordinated 
simultaneously for ``contouring control''.
    ``Computer using facility.'' (Cat 4)--The end-user's contiguous and 
accessible facilities:
    (a) Housing the ``computer operating area'' and those end-user 
functions that are being supported by the stated application of the 
electronic computer and its related equipment; and
    (b) Not extending beyond 1,500 meters in any direction from the 
center of the ``computer operating area''.

    Note: ``Computer operating area'': the immediate contiguous and 
accessible area around the electronic computer, where the normal 
operating, support and service functions take place.

    ``Computing element.'' (CE) (Cat 4)--The smallest computational 
unit that produces an arithmetic logic result.
    ``Contouring control.'' (Cat 2)--Two or more numerically controlled 
motions operating in accordance with instructions that specify the next 
required position and the required feed rates to that position. These 
feed rates are varied in relation to each other so that a desired 
contour is generated (Ref. ISO/DIS 2806--1980).
    Controlled country. A list of countries designated controlled for 
national security purposes found in Country Group D:1 (see Supplement 
No. 1 to part 740 of the EAR). This list was established under 
authority delegated to the Secretary of Commerce by Executive Order 
12214 of May 2, 1980 pursuant to section 5(b) of the EAA, and 
including: Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, 
the People's Republic of China, Estonia, Georgia, Kazakstan, 
Kyrgyzstan, Laos, Latvia, Lithuania, Moldova, Mongolia, Romania, 
Russia, Tajikstan, Turkmenistan, Ukraine, Uzbekistan, and Vietnam. Cuba 
and North Korea are controlled countries, but they are listed in 
Country Group E:2 (unilateral embargoes) rather than Country Group D:1. 
This definition does not apply to part 768 of the EAR (Foreign 
Availability), which provides a dedicated definition.
    Controlled in fact. For purposes of the Special Comprehensive 
License (part 752 of the EAR), controlled in fact is defined as it is 
under the Restrictive Trade Practices or Boycotts (Sec. 760.1(c) of the 
EAR).
    Cooperating country. A country that cooperated with the former 
COCOM member countries in restricting strategic exports in accordance 
with COCOM standards. The ``Cooperating Countries'' are: Austria, 
Finland, Hong Kong, Ireland, Korea (Republic of), New Zealand, Sweden, 
and Switzerland.
    Countries supporting international terrorism. In accordance with 
section 6(j) of the Export Administration Act of 1979, as amended 
(EAA), the Secretary of State has determined that the following 
countries' governments have repeatedly provided support for acts of 
international terrorism: Cuba, Iran, Iraq, Libya, North Korea, Sudan, 
and Syria.
    Country Chart. A chart, found in Supplement No. 1 to part 738 of 
the EAR, that contains certain licensing requirements based on 
destination and reason for control. In combination with the CCL, the 
Country Chart indicates when a license is required for any item on the 
CCL to any country in the world under General Prohibition One (Exports 
and Reexports in the Form Received), General Prohibition Two (Parts and 
Components Reexports), and General Prohibition Three (Foreign Produced 
Direct Product Reexports). See part 736 of the EAR.
    Country Groups. For export control purposes, foreign countries are 
separated into five country groups designated by the symbols A, B, C, 
D, and E. (See Supplement No. 1 to part 740 of the EAR for a list of 
countries in each Country Group.)
    ``Critical temperature.'' (Cat 1, 3, and 6)--The ``critical 
temperature'' (sometimes referred to as the transition temperature) of 
a specific ``superconductive'' material is the temperature at which the 
material loses all resistance to the flow of direct electrical current.
    ``Cryptanalysis.'' (Cat 5)--The analysis of a cryptographic system 
or its inputs and outputs to derive confidential variables or sensitive 
data including clear text. (ISO 7498-2-1988(E), paragraph 3.3.18)
    ``Cryptography.'' (Cat 5)--The discipline that embodies principles, 
means and methods for the transformation of data in order to hide its 
information content, prevent its undetected modification or prevent its 
unauthorized use. ``Cryptography'' is limited to the transformation of 
information using one or more ``secret parameters'' (e.g., crypto 
variables) and/or associated key management.

    Note: ``Secret parameter'': a constant or key kept from the 
knowledge of others or shared only within a group.

    Customs officer. The Customs officers in the U.S. Customs Service 
and postmasters unless the context indicates otherwise.
    ``Data signalling rate.'' (Cat 5)--The rate, as defined in ITU 
Recommendation 53-36, taking into account that, for non-binary 
modulation, baud and bit per second are not equal. Bits for coding, 
checking and synchronization functions are to be included.

    Notes: 1. When determining the ``data signalling rate'', 
servicing and administrative channels shall be excluded.
    2. It is the maximum one-way rate, i.e., the maximum rate in 
either transmission or reception.
    (a) Mirrors:
    (1) Mirrors having a single continuous optical reflecting 
surface that is dynamically deformed by the application of 
individual torques or forces to compensate for distortions in the 
optical waveform incident upon the mirror; or
    (2) Mirrors having multiple optical reflecting elements that can 
be individually and dynamically repositioned by the application of 
torques or forces to compensate for distortions in the optical 
waveform incident upon the mirror.
    (b) Deformable mirrors are also known as adaptive optic mirrors.

    ``Datagram.'' (Cat 4 and 5)--A self-contained, independent entity 
of data carrying sufficient information to be routed from the source to 
the destination data terminal equipment without reliance on earlier 
exchanges between this source and destination data terminal equipment 
and the transporting network.
    Defense Trade Control (DTC). The office at the Department of State, 
formerly known as the Office of Munitions Control, responsible for 
reviewing applications to export and reexport items on the U.S. 
Munitions List. (See 22 CFR parts 120 through 130.)
    Denied Persons List. A list, referenced in Supplement No. 2 to part 
764 of the EAR, of specific persons that have been denied export 
privileges, in whole or in part. The full text of each order denying 
export privileges is published in the Federal Register.
    ``Designed or modified.'' (MTCR context)--Equipment, parts, 
components, or ``software'' that, as a result of ``development'', or

[[Page 12928]]
modification, have specified properties that make them fit for a 
particular application. ``Designed or modified'' equipment, parts, 
components or ``software'' can be used for other applications. For 
example, a titanium coated pump designed for a ``missile'' may be used 
with corrosive fluids other than propellants.
    ``Development.'' (General Technology Note)--``Development'' is 
related to all stages prior to serial production, such as: design, 
design research, design analyses, design concepts, assembly and testing 
of prototypes, pilot production schemes, design data, process of 
transforming design data into a product, configuration design, 
integration design, layouts.
    ``Diffusion bonding.'' (Cat 1, 2, and 9)--A solid-state molecular 
joining of at least two separate metals into a single piece with a 
joint strength equivalent to that of the weakest material.
    ``Digital computer.'' (Cat 4 and 5)--Equipment that can, in the 
form of one or more discrete variables:
    (a) Accept data;
    (b) Store data or instructions in fixed or alterable (writable) 
storage devices;
    (c) Process data by means of a stored sequence of instructions that 
is modifiable; and
    (d) Provide output of data.

    Note: Modifications of a stored sequence of instructions include 
replacement of fixed storage devices, but not a physical change in 
wiring or interconnections.

    ``Digital transfer rate.'' (Cat 5)--The total bit rate of the 
information that is directly transferred on any type of medium.
    ``Direct-acting hydraulic pressing.'' (Cat 2)--A deformation 
process that uses a fluid-filled flexible bladder in direct contact 
with the workpiece.
    ``Drift rate.'' (gyro) (Cat 7)--The time rate of output deviation 
from the desired output. It consists of random and systematic 
components and is expressed as an equivalent input angular displacement 
per unit time with respect to inertial space.
    Dual use. Items that have both commercial and military or 
proliferation applications. While this term is used informally to 
describe items that are subject to the EAR, purely commercial items are 
also subject to the EAR (see Sec. 734.2(a) of the EAR).
    ``Dynamic adaptive routing.'' (Cat 5)--Automatic rerouting of 
traffic based on sensing and analysis of current actual network 
conditions.

    Note: This does not include cases of routing decisions taken on 
predefined information.

    ``Dynamic signal analyzers.'' (Cat 3)--``Signal analyzers'' that 
use digital sampling and transformation techniques to form a Fourier 
spectrum display of the given waveform including amplitude and phase 
information.
    Effective control. For purposes of the Special Comprehensive 
License (SCL), effective control means the exercise of a right, under a 
contractual agreement between the SCL Holder and the consignee, to 
determine and control the export of items authorized under an SCL.
    ``Electronically steerable phased array antenna.'' (Cat 6)--An 
antenna that forms a beam by means of phase coupling, i.e., the beam 
direction is controlled by the complex excitation coefficients of the 
radiating elements and the direction of that beam can be varied in 
azimuth or in elevation, or both, by application, both in transmission 
and reception, of an electrical signal.
    ``End-effectors.'' (Cat 2)--``End-effectors'' include grippers, 
``active tooling units'' and any other tooling that is attached to the 
baseplate on the end of a ``robot'' manipulator arm.

    Note: ``Active tooling unit'': a device for applying motive 
power, process energy or sensing to the workpiece.

    ``Equivalent Density.'' (Cat 6)--The mass of an optic per unit 
optical area projected onto the optical surface.
    ``Expert systems.'' (Cat 4)--Systems providing results by 
application of rules to data that are stored independently of the 
``program'' and capable of any of the following:
    (a) Modifying automatically the ``source code'' introduced by the 
user;
    (b) Providing knowledge linked to a class of problems in quasi-
natural language; or
    (c) Acquiring the knowledge required for their development 
(symbolic training).
    Export. Export means an actual shipment or transmission of items 
out of the United States. (See Sec. 734.2(b) of the EAR.)
    Export Administration Act (EAA). Export Administration Act of 1979, 
as amended, effective October 1, 1979.
    Export Administration Regulations (EAR). Regulations set forth in 
parts 730-774, inclusive, of Title 15 of the Code of Federal 
Regulations.
    Export Administration Review Board (EARB). EARB voting members are 
the Secretary of Commerce, the Secretary of State, the Secretary of 
Defense, the Secretary of Energy, and the Director of the Arms Control 
and Disarmament Agency. The Chairman of the Joint Chiefs of Staff and 
the Director of Central Intelligence are non-voting members. The 
Secretary of Commerce is the Chair of the EARB. No alternate EARB 
members may be designated, but the acting head or deputy head of any 
agency or department may serve in lieu of the head of the concerned 
agency or department. The EARB may invite the heads of other Government 
agencies or departments (other than those identified in this 
definition) to participate in the activities of the EARB when matters 
of interest to such agencies or departments are under consideration. 
Decisions are made by majority vote.
    Export Control Classification Number (ECCN). The numbers used in 
Supplement No. 1 to part 774 of the EAR and throughout the EAR. The 
Export Control Classification Number consists of a set of digits and a 
letter. Reference Sec. 738.2(c) of the EAR for a complete description 
of each ECCN's composition.
    Export control document. A license; application for license; any 
and all documents submitted in accordance with the requirements of the 
EAR in support of, or in relation to, a license application; 
application for International Import Certificate; International Import 
Certificate; Delivery Verification Certificate or similar evidence of 
delivery; Shipper's Export Declaration (SED) presented in connection 
with shipments to any country; a Dock Receipt or bill of lading issued 
by any carrier in connection with any export subject to the EAR and any 
and all documents prepared and submitted by exporters and agents 
pursuant to the export clearance requirements of part 758 of the EAR; a 
U.S. exporter's report of request received for information, 
certification, or other action indicating a restrictive trade practice 
or boycott imposed by a foreign country against a country friendly to 
the United States, submitted to the U.S. Department of Commerce in 
accordance with the provisions of part 760 of the EAR; Customs Form 
7512, Transportation Entry and Manifest of Goods, Subject to Customs 
Inspection and Permit, when used for Transportation and Exportation 
(T.& E.) or Immediate Exportation (I.E.); and any other document issued 
by a U.S. Government agency as evidence of the existence of a license 
for the purpose of loading onto an exporting carrier or otherwise 
facilitating or effecting an export from the United States or any 
reexport of any item requiring a license.
    Export of satellites. The term export, as applied to satellites 
controlled by the Department of Commerce, includes the physical 
movement of a satellite from the United States to another country for

[[Page 12929]]
any purpose, or the transfer of registration of a satellite or 
operational control over a satellite from a person resident in the 
United States to a person resident in another country. Under the 
Commercial Space Launch Act, a launch of a launch vehicle and payload 
is not an export for purposes of controlling export.
    Exporter. See U.S. exporter.
    Exporting carrier. Any instrumentality of water, land, or air 
transportation by which an export is effected, including any domestic 
air carrier on which any cargo for export is laden or carried.
    ``FMU.''--See ``flexible manufacturing unit''
    ``Family.'' (Cat 3)--Consists of microprocessor or microcomputer 
microcircuits that have:
    (a) The same architecture;
    (b) The same basic instruction set; and
    (c) The same basic technology (e.g., only NMOS or only CMOS).
    ``Fast select.'' (Cat 4 and 5)--A facility applicable to virtual 
calls that allows data terminal equipment to expand the possibility to 
transmit data in call set-up and clearing ``packets'' beyond the basic 
capabilities of a virtual call.

    Note: ``Packet'': a group of binary digits including data and 
call control signals that is switched as a composite whole. The 
data, call control signals, and possible error control information 
are arranged in a specified format.

    ``Fault tolerance.'' (Cat 4)--The capability of a computer system, 
after any malfunction of any of its hardware or ``software'' 
components, to continue to operate without human intervention, at a 
given level of service that provides: continuity of operation, data 
integrity, and recovery of service within a given time.
    ``Fibrous or filamentary materials.'' (Cat 1 and 8)--The term 
``fibrous and filamentary materials'' includes:
    (a) Continuous monofilaments;
    (b) Continuous yarns and rovings;
    (c) Tapes, fabrics, random mats and braids;
    (d) Chopped fibers, staple fibers and coherent fiber blankets;
    (e) Whiskers, either monocrystalline or polycrystalline, of any 
length;
    (f) Aromatic polyimide pulp.
    ``Film type integrated circuit.'' (Cat 3)--An array of ``circuit 
elements'' and metallic interconnections formed by deposition of a 
thick or thin film on an insulating ``substrate''.

    Note: ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode, one transistor, 
one resistor, one capacitor, etc.

    Firm. A corporation, partnership, limited partnership, association, 
company, trust, or any other kind of organization or body corporate, 
situated, residing, or doing business in the United States or any 
foreign country, including any government or agency thereof.
    ``Fixed.'' (Cat 5)--The coding or compression algorithm cannot 
accept externally supplied parameters (e.g., cryptographic or key 
variables) and cannot be modified by the user.
    ``Flexible manufacturing unit.'' (FMU), (sometimes also referred to 
as `flexible manufacturing system' (FMS) or `flexible manufacturing 
cell' (FMC)) (Cat 2)--An entity that includes a combination of at 
least:
    (a) A ``digital computer'' including its own ``main storage'' and 
its own ``related equipment''; and
    (b) Two or more of the following:
    (1) A machine tool described in 2B001.c;
    (2) A dimensional inspection machine described in Category 2, or 
another digitally controlled measuring machine controlled by an entry 
in Category 2;
    (3) A ``robot'' controlled by an entry in Category 2 or 8;
    (4) Digitally controlled equipment controlled by 1B003, 2B003, or 
9B001;
    (5) ``Stored program controlled'' equipment controlled by 3B001;
    (6) Digitally controlled equipment controlled by 1B001;
    (7) Digitally controlled electronic equipment controlled by 3A002.
    ``Fluoride fibers.'' (Cat 6)--Fibers manufactured from bulk 
fluoride compounds.
    ``Focal plane array.'' (Cat 6)--A linear or two-dimensional planar 
layer, or combination of planar layers, of individual detector 
elements, with or without readout electronics, that work in the focal 
plane.

    N.B. This definition does not include a stack of single detector 
elements or any two, three, or four element detectors provided time 
delay and integration is not performed within the element.

    Foreign government agency. For the purposes of exemption from 
support documentation (see Sec. 748.9 of the EAR), a foreign government 
agency is defined as follows:
    (a) National governmental departments operated by government-paid 
personnel performing governmental administrative functions; e.g. 
Finance Ministry, Ministry of Defense, Ministry of Health, etc. 
(municipal or other local government entities must submit required 
support documentation); or
    (b) National government-owned public service entities; e.g., 
nationally owned railway, postal, telephone, telegraph, broadcasting, 
and power systems, etc. The term ``foreign government agency'' does not 
include government corporations, quasi-government agencies, and state 
enterprises engaged in commercial, industrial, and manufacturing 
activities, such as petroleum refineries, mines, steel mills, retail 
stores, automobile manufacturing plants, airlines, or steamship lines 
that operate between two or more countries, etc.
    Foreign policy control. A control imposed under the EAR for any and 
all of the following reasons: chemical and biological weapons, nuclear 
nonproliferation, missile technology, regional stability, crime 
control, anti-terrorism, United Nations sanctions, and any other reason 
for control implemented under section 6 of the EAA or other similar 
authority.
    Forwarding agent. The person authorized by an exporter to perform 
for that exporter services to facilitate the export of items. The 
forwarding agent need not be a person regularly engaged in the freight 
forwarding business. The forwarding agent must be designated by the 
exporter in writing in the power-of-attorney set forth on the Shippers' 
Export Declaration or in a general power-of-attorney, or other written 
form, subscribed and sworn to by a duly authorized officer or employee 
of the exporter.
    ``Frequency agility.'' (frequency hopping) (Cat 5)--A form of 
``spread spectrum'' in which the transmission frequency of a single 
communication channel is made to change by discrete steps.
    ``Frequency agility.'' (radar) (Cat 6)--(see ``Radar frequency 
agility'')
    ``Frequency switching time.'' (Cat 3 and 5)--The maximum time 
(i.e., delay), taken by a signal, when switched from one selected 
output frequency to another selected output frequency, to reach:
    (a) A frequency within 100 Hz of the final frequency; or
    (b) An output level within 1 dB of the final output level.
    ``Frequency synthesizer.'' (Cat 3)--Any kind of frequency source or 
signal generator, regardless of the actual technique used, providing a 
multiplicity of simultaneous or alternative output frequencies, from 
one or more outputs, controlled by, derived from or disciplined by a 
lesser number of standard (or master) frequencies.
    ``Gas Atomization.'' (Cat 1)--A process to reduce a molten stream 
of metal alloy to droplets of 500-micrometer diameter or less by a 
high-pressure gas stream.

[[Page 12930]]

    ``Gateway.'' (Cat 5)--The function, realized by any combination of 
equipment and ``software'', to carry out the conversion of conventions 
for representing, processing or communicating information used on one 
system into the corresponding, but different conventions used in 
another system.
    General prohibitions. The 10 prohibitions found in part 734 of the 
EAR that prohibit certain exports, reexports, and other conduct, 
subject to the EAR, absent a license, License Exception, or 
determination that no license is required (``NLR'').
    ``Generic software.'' (Cat 5)--A set of instructions for a ``stored 
program controlled'' switching system that is the same for all switches 
using that type of switching system.

    Note: The data base portion is not considered to be a part of 
the generic ``software''.

    ``Geographically dispersed.'' (Cat 6)--Sensors are considered 
geographically dispersed when each location is distant from any other 
more than 1,500 m in any direction. Mobile sensors are always 
considered geographically dispersed.
    ``Global interrupt latency time.'' (Cat 4)--The time taken by the 
computer system to recognize an interrupt due to the event, service the 
interrupt and perform a context switch to an alternate memory-resident 
task waiting on the interrupt.
    Hold Without Action (HWA). License applications may be held without 
action only in the limited circumstances described in Sec. 750.4(c) of 
the EAR.
    ``Hot isostatic densification.'' (Cat 2)--A process of pressurizing 
a casting at temperatures exceeding 375 K (102  deg.C) in a closed 
cavity through various media (gas, liquid, solid particles, etc.) to 
create equal force in all directions to reduce or eliminate internal 
voids in the casting.
    ``Hybrid computer.'' (Cat 4)--Equipment that can:
    (a) Accept data;
    (b) Process data, in both analog and digital representation; and
    (c) Provide output of data.
    ``Hybrid integrated circuit.'' (Cat 3)--Any combination of 
integrated circuit(s), or integrated circuit with ``circuit elements'' 
or ``discrete components'' connected together to perform (a) specific 
function(s), and having all of the following criteria:
    (a) Containing at least one unencapsulated device;
    (b) Connected together using typical IC-production methods;
    (c) Replaceable as an entity; and
    (d) Not normally capable of being disassembled.

    Notes: 1. ``Circuit element'': a single active or passive 
functional part of an electronic circuit, such as one diode, one 
transistor, one resistor, one capacitor, etc.
    2. ``Discrete component'': a separately packaged ``circuit 
element'' with its own external connections.

    ``ISDN.''--See ``Integrated Services Digital Network''.
    ``Image enhancement.'' (Cat 4)--The processing of externally 
derived information-bearing images by algorithms such as time 
compression, filtering, extraction, selection, correlation, convolution 
or transformations between domains (e.g., fast Fourier transform or 
Walsh transform). This does not include algorithms using only linear or 
rotational transformation of a single image, such as translation, 
feature extraction, registration or false coloration.
    ``Information security.'' (Cat 5)--All the means and functions 
ensuring the accessibility, confidentiality or integrity of information 
or communications, excluding the means and functions intended to 
safeguard against malfunctions. This includes ``cryptography'', 
``cryptanalysis'', protection against compromising emanations and 
computer security.

    N.B. ``Cryptanalysis'': the analysis of a cryptographic system 
or its inputs and outputs to derive confidential variables or 
sensitive data, including clear text. (ISO 7498-2-1988 (E), 
paragraph 3.3.18)

    ``Instantaneous bandwidth.'' (Cat 3)--The bandwidth over which 
output power remains constant within 3 dB without adjustment of other 
operating parameters.
    ``Instrumented range.'' (Cat 6)--The specified unambiguous display 
range of a radar.
    ``Integrated Services Digital Network.'' (ISDN) (Cat 5)--A unified 
end-to-end digital network, in which data originating from all types of 
communication (e.g., voice, text, data, still and moving pictures) are 
transmitted from one port (terminal) in the exchange (switch) over one 
access line to and from the subscriber.
    Intent to Deny (ITD) letter. A letter informing the applicant:
    (a) Of the reason for BXA's decision to deny a license application; 
and
    (b) That the application will be denied 45 days from the date of 
the ITD letter, unless the applicant provides, and BXA accepts, a 
reason why the application should not be denied for the stated reason. 
See Sec. 750.6 of the EAR.
    ``Interconnected radar sensors.'' (Cat 6)--Two or more radar 
sensors are interconnected when they mutually exchange data in real 
time.
    Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter, the purchaser, or the ultimate 
consignee, for the purpose of effecting delivery of the items to the 
ultimate consignee.
    ``Intrinsic Magnetic Gradiometer.'' (Cat 6)--A single magnetic 
field gradient sensing element and associated electronics the output of 
which is a measure of magnetic field gradient. (See also ``Magnetic 
Gradiometer'')
    ``Isostatic presses.'' (Cat 2)--Equipment capable of pressurizing a 
closed cavity through various media (gas, liquid, solid particles, 
etc.) to create equal pressure in all directions within the cavity upon 
a workpiece or material.
    Item. ``Item'' means ``commodities, software, and technology.'' 
When the EAR intend to refer specifically to commodities, software, or 
technology, the text will use the specific reference.
    Know. See ``knowledge.''
    Knowledge. Knowledge of a circumstance (the term may be a variant, 
such as ``know,'' ``reason to know,'' or ``reason to believe'') 
includes not only positive knowledge that the circumstance exists or is 
substantially certain to occur, but also an awareness of a high 
probability of its existence or future occurrence. Such awareness is 
inferred from evidence of the conscious disregard of facts known to a 
person and is also inferred from a person's willful avoidance of facts. 
This definition does not apply to part 760 of the EAR (Restrictive 
Trade Practices or Boycotts).
    ``Laser.'' (Cat 2, 3, 5, 6, and 9)--An assembly of components that 
produce both spatially and temporally coherent light that is amplified 
by stimulated emission of radiation. See also: ``Chemical laser''; ``Q-
switched laser''; ``Super High Power Laser''; and ``Transfer laser''.
    Law or regulation relating to export control. Any statute, 
proclamation, executive order, regulation, rule, license, or order 
applicable to any conduct involving an export transaction shall be 
deemed to be a ``law or regulation relating to export control.''
    Legible or legibility. Legible and legibility mean the quality of a 
letter or numeral that enables the observer to identify it positively 
and quickly to the exclusion of all other letters or numerals.
    License. Authority issued by the Bureau of Export Administration 
authorizing an export, reexport, or other regulated activity. The term 
``license'' does not include authority represented by a ``License 
Exception.''

[[Page 12931]]

    License application; application for license. License application 
and similar wording mean an application to BXA requesting the issuance 
of a license to the applicant.
    License Exception. An authorization described in part 740 of the 
EAR that allows you to export or reexport, under stated conditions, 
items subject to the EAR that otherwise would require a license. Unless 
otherwise indicated, these License Exceptions are not applicable to 
exports under the licensing jurisdiction of agencies other than the 
Department of Commerce.
    Licensee. The person to whom a license has been issued by BXA. See 
Sec. 750.7(c) of the EAR for a complete definition and identification 
of a licensee's responsibilities.
    ``Linearity.'' (Cat 2)--``Linearity'' (usually measured in terms of 
non-linearity) is the maximum deviation of the actual characteristic 
(average of upscale and downscale readings), positive or negative, from 
a straight line so positioned as to equalize and minimize the maximum 
deviations.
    ``Local area network.'' (Cat 4)--A data communication system that:
    (a) Allows an arbitrary number of independent ``data devices'' to 
communicate directly with each other; and
    (b) Is confined to a geographical area of moderate size (e.g., 
office building, plant, campus, warehouse).

    Note: ``Data device'': equipment capable of transmitting or 
receiving sequences of digital information.

    ``MBTR''.--See ``maximum bit transfer rate''.
    MTCR. See Missile Technology Control Regime.
    MTEC. See Missile Technology Export Control Group.
    ``Magnetic Gradiometers.'' (Cat 6)--Are designed to detect the 
spatial variation of magnetic fields from sources external to the 
instrument. They consist of multiple ``magnetometers'' and associated 
electronics the output of which is a measure of magnetic field 
gradient. (See also ``Intrinsic Magnetic Gradiometer''.)
    ``Magnetometers.'' (Cat 6)--Are designed to detect magnetic fields 
from sources external to the instrument. They consist of a single 
magnetic field sensing element and associated electronics the output of 
which is a measure of the magnetic field.
    ``Main storage.'' (Cat 4)--The primary storage for data or 
instructions for rapid access by a central processing unit. It consists 
of the internal storage of a ``digital computer'' and any hierarchical 
extension thereto, such as cache storage or non-sequentially accessed 
extended storage.
    ``Matrix.'' (Cat 1, 2, 8, and 9)--A substantially continuous phase 
that fills the space between particles, whiskers or fibers.
    ``Maximum bit transfer rate.'' (MBTR) (Cat 4)--Of solid state 
storage equipment: the number of data bits per second transferred 
between the equipment and its controller. Of a disk drive: the internal 
data transfer rate calculated as follows:

     ``MBTR'' (bits per second)=B x R x T, where:

B=Maximum number of data bits per track available to read or write 
in a single revolution;
R=Revolutions per second;
T=Number of tracks that can be used or written simultaneously.

    ``Measurement uncertainty.'' (Cat 2)--The characteristic parameter 
that specifies in what range around the output value the correct value 
of the measurable variable lies with a confidence level of 95%. It 
includes the uncorrected systematic deviations, the uncorrected 
backlash, and the random deviations (Ref.: VDI/VDE 2617).
    ``Mechanical alloying.'' (Cat 1)--An all