Foreign Availability Determination for Certain Telecommunications Transmission Equipment Controlled by ECCN 5A02A(a)

DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket No. 940107-4007]

Foreign Availability Determination for Certain Telecommunications

Transmission Equipment Controlled by ECCN 5A02A(a)

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Notice of positive determination.

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SUMMARY: Under section 5(f) of the Export Administration Act (EAA) and

part 791 of the Export Administration Regulations (EAR), the Department

of Commerce determined on January 10, 1994, that foreign availability

exists within the meaning of the EAA and the EAR for certain

telecommunications transmission equipment to all COCOM-controlled

destinations. The United States Government controls this equipment

under ECCN 5A02A(a) of the Commerce Control List (CCL) (15 CFR 799.1,

Supplement 1) of the EAR.

On October 6, 1993, the United States removed the national

security-based validated export license requirements for exports of

this telecommunications transmission equipment to most non-controlled

countries by making this equipment eligible for export under General

License GFW (58 FR 52179). The October rule revised ECCN 5A02A and

other entries on the Commerce Control List to conform to changes in the

International Industrial List maintained by governments participating

in COCOM (the Coordinating Committee for Multilateral Export Controls).

However, a validated export license continues to be required to the

following non-controlled destinations: Iran, Syria, Country Group S,

and the South African military and police. A validated export license

also continues to be required for exports of this equipment to all

controlled destinations: Country Groups Q, W, Y, and Z, and the

People's Republic of China.

The January 10, 1994, determination is limited to certain

telecommunications transmission equipment operating according to the

synchronous digital hierarchy (SDH) at digital transfer rates up to 623

million bits per second (mbps), and does not include the design,

development, and production technology for SDH equipment that United

States controls under ECCN 5E02A.

The January 10, 1994, determination does not result in the

immediate removal of validated licensing requirements for this

equipment to controlled destinations. As provided for by the Export

Administration Act, the United States will enter into negotiations with

its allies so as to preserve our shared security interests with respect

to this equipment and to reach agreement as to what future export

restrictions may be necessary to preserve those interests. Consistent

with the provisions of section 5 of the EAA and part 791 of the EAR,

the Commerce Department will take appropriate action by May 9, 1994, to

remove national security-based validated license requirements for

exports of this telecommunications transmission equipment to most

controlled destinations.

FOR FURTHER INFORMATION CONTACT: For questions concerning the October

6, 1993 regulation change (58 FR 52179), contact Dale Jensen, Office of

Technology and Policy Analysis, Telephone: (202) 482-0730.

For questions concerning the foreign availability assessment,

contact Michael Andrews, Foreign Industrial Analyst, Office of Foreign

Availability, Bureau of Export Administration, Department of Commerce,

Telephone: (202) 482-0074.

SUPPLEMENTARY INFORMATION:

Background

Section 5(f)(3) of the EAA and part 791 of the EAR set forth the

procedures and criteria for determining the foreign availability of

items controlled for national security reasons. The Secretary of

Commerce, or the Secretary's designee, is authorized to determine

whether foreign availability exists.

With limited exceptions, the Department of Commerce may not

maintain national security controls on exports of an item to countries

when the Department determines that items of comparable quality are

available, in fact, to such countries from foreign sources in

quantities sufficient to render the controls ineffective in achieving

their purpose.

On August 9, 1993, the Office of Foreign Availability (OFA)

initiated a foreign availability assessment of certain

telecommunications transmission equipment controlled by ECCN 5A02A in

response to a claim filed pursuant to section 791 of the EAR. The

Department published a notice of the initiation of the assessment in

the Federal Register on September 2, 1993. (58 FR 46625).

On December 9, 1993, the Assistant Secretary, having considered the

assessment and other relevant information provided by OFA and other

concerned agencies, made a preliminary determination that foreign

availability exists to controlled countries, within the meaning of

section 5(f) of the EAA and part 791 of the EAR, for certain SDH

telecommunications transmission equipment operating at digital transfer

rates up to 623 mbps. Consistent with the EAA, the Department provided

all interested agencies an opportunity to review and comment on the

assessment and determination during a one month period.

On January 10, 1994, the Assistant Secretary made a final

determination that foreign availability exists for certain

telecommunications transmission equipment to COCOM-controlled

destinations.

As a result of an October 6, 1993, regulatory action (58 FR 52179),

exports of the above telecommunications transmission equipment no

longer require a validated license for national security reasons to

most destinations in Country Group T or V. Subject to the restrictions

in Sec. 771.2(c), U.S. exporters of this telecommunications

transmission equipment may export it under General License GFW to most

destinations in Country Groups T and V. General license GFW is not

available for exports to Iran, Syria, the People's Republic of China or

the South African military or police; and the United States continues

to require a validated license for exports of all telecommunications

transmission equipment controlled by ECCN 5A02A to these destinations.

Exporters should also be aware that the Department of the Treasury's

Office of Foreign Assets Control maintains an embargo on other

destinations, such as Iraq, Haiti, and the Federal Republic of

Yugoslavia (Serbia and Montenegro).

A validated license requirement also continues to apply to exports

of all telecommunications transmission equipment controlled by 5A02A to

all destinations in Country Groups Q, S, W, Y, and Z, and the People's

Republic of China. Foreign policy-based validated license requirements

remain in effect for exports to Iran or Syria of all equipment

controlled by 5A02A. All other foreign policy-based validated license

requirements also remain in effect.

This determination is limited to certain SDH telecommunications

transmission equipment operating at digital transfer rates up to 623

million bits per second (mbps), and does not include the design,

development, and production technology for SDH equipment that United

States controls under ECCN 5E02A.

As mentioned above, the January 10, 1994, determination does not

result in the immediate removal of validated licensing requirements for

this equipment to controlled destinations. As provided for by the

Export Administration Act, the United States will enter into

negotiations with its allies so as to preserve our shared security

interests with respect to this equipment and to reach agreement as to

what future export restrictions may be necessary to preserve those

interests. Consistent with the provisions of section 5 of the EAA and

part 791 of the EAR, the Commerce Department will take appropriate

action by May 9, 1994, to remove national security-based validated

license requirements for exports of this telecommunications

transmission equipment to most controlled destinations.

Dated: January 10, 1994.

Sue E. Eckert,

Assistant Secretary for Export Administration.

[FR Doc. 94-913 Filed 1-10-94; 4:55 pm]

BILLING CODE 3510-DT-P