Revisions to the Export Administration Regulations: Exports of Sample Shipments Containing Precursor and Intermediate Chemicals; Revision to Australia Group Members; Aqueous Hydrofluoric Acid; and Clarifications

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 773, 778 and 799

[Docket No. 951004245-5245-01]

RIN 0694-AB20

Revisions to the Export Administration Regulations: Exports of

Sample Shipments Containing Precursor and Intermediate Chemicals;

Revision to Australia Group Members; Aqueous Hydrofluoric Acid; and

Clarifications

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration (BXA) maintains the

Commerce Control List (CCL), as part of the Export Administration

Regulations (EAR). The changes made by this rule are based on

discussions in the Australia Group (AG) and suggested changes by

industry.

[[Page 54031]]

This rule amends the CCL by revising Export Control Classification

Number (ECCN) 1C60 to clarify that this entry controls aqueous

hydrofluoric acid. ECCN 1C60 controls dual-use precursors and

intermediate chemicals useful in the production of chemical warfare

agents and certain mixtures containing such chemicals.

In addition, this rule adds Poland, Romania and the Slovak Republic

to the list of Australia Group countries, thereby making them eligible

for the license exceptions accorded AG members.

DATES: This rule is effective October 19, 1995.

FOR FURTHER INFORMATION CONTACT:

For general questions, call Sharron Cook, Bureau of Export

Administration, Regulatory Policy Division, Telephone: (202) 482-2440.

For questions on foreign policy controls, call Patricia Sefcik,

Bureau of Export Administration, Chemical & Biological Controls

Division, Telephone: (202) 482-0707.

For questions of a technical nature on chemical weapon precursors,

biological agents, and equipment that can be used to produce chemical

and biological weapons agents, call James Seevaratnam, Bureau of Export

Administration, Chemical & Biological Controls Division, Telephone:

(202) 482-3343.

SUPPLEMENTARY INFORMATION:

Background

The export control liberalization set forth in BXA's October 19,

1994 Federal Register notice (59 FR 52685) provides relief to the

chemical industry from the previous zero tolerance on chemical mixtures

containing an Australia Group (AG) controlled chemical precursor.

Before October 19, 1994, the U.S. did not permit any preferential

licensing treatment for exports of chemical mixtures that contained any

quantity of an AG-controlled chemical.

In May 1994, the members of the AG agreed to harmonize licensing

requirements for mixtures containing AG controlled chemicals in order

to facilitate legitimate trade without allowing chemical weapons (CW)

proliferators to circumvent AG controls. Accordingly, thresholds were

agreed to for mixtures containing de minimis quantities, by weight, of

AG controlled chemicals. In this regard, the ``solvent free basis''

provision for determining whether such chemical mixtures are subject to

export licensing requirement was added to preclude proliferators from

extracting meaningful quantities of AG controlled chemical precursors

for use in the production of CW.

At the November/December 1994 meeting of the Australia Group, the

delegates discussed certain technical revisions in the AG's harmonized

controls on chemical weapons precursors. The changes discussed at the

meeting are contained in this final rule. These changes refine and

clarify the scope of controls on exports of sample shipments and

mixtures containing controlled precursor and intermediate chemicals.

This rule does not address controls on biological agents that are

controlled by ECCN 1C61.

Consistent with an AG agreement, Commerce is adding a note to ECCN

1C60 to clarify that a validated license is required for aqueous

hydrofluoric acid.

This rule also adds Poland, Romania and the Slovak Republic to the

list of countries exempt from certain validated license requirements on

the basis of their recent membership in the Australia Group. For

consistency and conformity, Romania has been removed from Supplement

No. 5 to Part 778.

The chemical industry commented on the October 1994 rule, and

requested that BXA clarify the terms ``solvent'' and ``solvent free

basis.'' Therefore, in Supplement No. 3 to Part 778, this rule sets

forth the definition of solvent and provides examples of mixtures

containing AG-controlled chemicals, with and without solvents, to

assist companies in determining whether such mixtures require validated

export licenses.

BXA also received comments concerning the reporting requirements

for sample shipments. Many exporters recommended that reports for

sample shipments should be submitted on a quarterly basis instead of

within 30 days after each sample shipment. The reports and the

reporting requirement have been under consideration and upon assessing

the data, and in light of the revisions to sample shipments made by

this rule, it was determined that the reporting requirement will be

made quarterly, under OMB control number 0694-0086.

BXA also received comments on the potential confusion caused by

including in ECCN 1C60 both precursor chemicals that require a license

to most countries and sample and mixtures that are exempt from a

validated license requirement to most destinations. Therefore, this

rule establishes a new ECCN 1C95F for mixtures meeting the de minimis

mixtures exemptions found in ECCN 1C60. However, 1C60 chemicals that

meet the samples exemption do not lose their identity and therefore

will remain classified under ECCN 1C60.

This final rule revises ECCN 1C60, which controls precursor and

intermediate chemicals useful in the production of chemical warfare

agents, as follows:

ECCN 1C60

(1) Note 1 to ECCN 1C60 is revised to modify the general license

treatment for sample shipments containing controlled chemical

precursors to eligible destinations (all destinations except Iran,

Syria and Country Groups S and Z). Previously, general license

treatment for sample shipments to eligible destinations has been

available for only a single sample shipment equal to or less than a 55-

gallon container or 200 kg of each chemical to any one consignee per

calendar year. Exporters may now use General License G-DEST to make

multiple sample shipments of any quantity of precursor or intermediate

chemicals, listed in ECCN 1C60, as long as the cumulative annual amount

of each chemical to any one consignee does not exceed either a 55

gallon container or 200 kg. Reports on sample shipments must be made

quarterly.

(2) Note 2 to ECCN 1C60 is clarified by adding a definition of

``Solvent''.

Although the Export Administration Act (EAA) expired on August 20,

1994, the President invoked the International Emergency Economic Powers

Act and continued in effect, to the extent permitted by law, the

provisions of the EAA and the EAR in Executive Order 12924 of August

19, 1994.

Notwithstanding any other provision of law, no person is required

to respond to nor shall a person be subject to a penalty for failure to

comply with a collection of information subject to the requirements of

the Paperwork Reduction Act unless that collection of information

displays a currently valid OMB Control Number.

Saving Clause

Shipments of aqueous hydrofluoric acid that were on dock for

loading, on lighter, laden aboard an exporting carrier, or en route

aboard a carrier to a port of export pursuant to actual orders for

export before October 19, 1995 may be exported under general license

provisions up to and including November 16, 1995. Any aqueous

hydrofluoric acid not actually exported before midnight November 16,

1995, require a validated export license in accordance with this

regulation.

[[Page 54032]]

Rulemaking Requirements

1. This final rule has been determined to be not significant for

the purposes of Executive Order 12866.

2. This rule involves collections of information subject to the

Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). These

collections have been approved by the Office of Management and Budget

under control numbers 0694-0005, 0694-0010, 0694-0023, 0694-0067, and

0694-0086. This rule makes a revision to an OMB collection, control

number 0694-0086. The public burden for this collection contained

within the rulemaking will remain an estimated average of one-half hour

per response, although the frequency for reporting has been decreased.

This includes the time for reviewing instructions, searching existing

data sources, gathering and maintaining the data needed, and completing

and reviewing the collection of information. Send comments regarding

these burden estimates or any other aspect of the data requirements,

including suggestions for reducing this burden, to the Office of

Security and Management Support, Room 4513, Bureau of Export

Administration, U.S. Department of Commerce, Washington, D.C. 20230;

and to the Office of Information and Regulatory Affairs, Office of

Management and Budget, Washington, D.C. 20503 (Attn: Paperwork

Reduction Project--0694-0086).

3. This rule does not contain policies with Federalism implications

sufficient to warrant preparation of a Federalism assessment under

Executive Order 12612.

4. Because a notice of proposed rulemaking and an opportunity for

public comment are not required to be given for this rule by section

553 of the Administrative Procedure Act (5 U.S.C. 553) or by any other

law, under sections 3(a) of the Regulatory Flexibility Act (5 U.S.C.

603(a) and 604(a)) no initial or final Regulatory Flexibility Analysis

has to be or will be prepared.

5. The provisions of the Administrative Procedure Act (5 U.S.C.

553) requiring notice of proposed rulemaking, the opportunity for

public participation, and a delay in effective date, are inapplicable

because this regulation involves a military and foreign affairs

function of the United States. Further, no other law requires that a

notice of proposed rulemaking and an opportunity for public comment be

given for this rule.

Therefore, this regulation is issued in final form. Although there

is no formal comment period, public comments on this regulation are

welcome on a continuing basis. Comments should be submitted to Sharron

Cook, Regulatory Policy Division, Office of Exporter Services, Bureau

of Export Administration, Department of Commerce, P.O. Box 273,

Washington, DC 20044.

List of Subjects

15 CFR Part 773 and 799

Exports, Reporting and recordkeeping requirements.

15 CFR Part 778

Exports, Nuclear energy, Reporting and recordkeeping requirements.

Accordingly, Parts 773, 778 and 799 of the Export Administration

Regulations (15 CFR Parts 730-799) are amended as follows:

1. The authority citations for 15 CFR Part 773 and 778 continue to

read as follows:

Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et

seq.), as amended; Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et

seq.); Pub. L. 95-242, 92 Stat. 120 (22 U.S.C. 3201 et seq. and 42

U.S.C. 2139a); Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et

seq.), as amended; Pub. L. 102-484, 106 Stat. 2575 (22 U.S.C. 6004);

E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 1977), as amended;

E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 1978); E.O. 12214

of May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 12851 of June 11,

1993 (58 FR 33181, June 15, 1993); E.O. 12867 of September 30, 1993

(58 FR 51747, October 4, 1993); E.O. 12924 of August 19, 1994 (59 FR

43437 of August 23, 1994); E.O. 12938 of November 14, 1994 (59 FR

59099 of November 16, 1994) and Notice of August 15, 1995 (60 FR

42767).

2. The authority citation for 15 CFR Part 799 continues to read as

follows:

Authority: 50 U.S.C. App. 5, as amended; Pub. L. 264, 59 Stat.

619 (22 U.S.C. 287c), as amended; Pub. L. 90-351, 82 Stat. 197 (18

U.S.C. 2510 et seq.), as amended; sec. 101, Pub. L. 93-153, 87 Stat.

576 (30 U.S.C. 185), as amended; sec. 103, Pub. L. 94-163, 89 Stat.

877 (42 U.S.C. 6212), as amended; secs. 201 and 201(11)(e), Pub. L.

94-258, 90 Stat. 309 (10 U.S.C. 7420 and 7430(e)), as amended; Pub.

L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et seq.); Pub. L. 95-242,

92 Stat. 120 (22 U.S.C. 3201 et seq. and 42 U.S.C. 2139a); sec. 208,

Pub. L. 95-372, 92 Stat. 668 (43 U.S.C. 1354); Pub. L. 96-72, 93

Stat. 503 (50 U.S.C. App. 2401 et seq.), as amended; sec. 125, Pub.

L. 99-64, 99 Stat. 156 (46 U.S.C. 466c); Pub. L. 102-484, 106 Stat.

2575 (22 U.S.C. 6004); E.O. 11912 of April 13, 1976 (41 FR 15825,

April 15, 1976); E.O. 12002 of July 7, 1977 (42 FR 35623, July 7,

1977), as amended; E.O. 12058 of May 11, 1978 (43 FR 20947, May 16,

1978); E.O. 12214 of May 2, 1980 (45 FR 29783, May 6, 1980); E.O.

12851 of June 11, 1993 (58 FR 33181, June 15, 1993); E.O. 12867 of

September 30, 1993 (58 FR 51747, October 4, 1993); E.O 12918 of May

26, 1994 (59 FR 28205, May 31, 1994); E.O. 12924 of August 19, 1994

(59 FR 43437 of August 23, 1994); E.O. 12938 of November 14, 1994

(59 FR 59099 of November 16, 1994); and Notice of August 15, 1995

(60 FR 42767).

PART 773--[AMENDED]

3. Section 773.9 is amended by:

i. Revising paragraph (a)(1);

ii. Revising the phrase ``ECCN 1C60B or 1C64E'' or ``ECCNs 1C60C or

1C64E'' to read ``ECCN 1C60C'' in the following paragraphs:

A. (f)(1)(iv), last sentence;

B. (f)(2)(i)(B), last sentence; and

C. (i)(2)(vii), last sentence; and

iii. Revising the notice at the end of paragraph (l) to read as

follows:

Sec. 773.9 Special Chemical License.

(a) * * *

(1) Precursor and intermediate chemicals controlled under ECCN

1C60C; and

* * * * *

(l) * * *

These commodities were authorized for export from the United

States under a Special Chemical License procedure on the condition

that they may not be reexported without prior approval from the

United States authorities. This prior approval is not required for

reexports to 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, and the United Kingdom.

* * * * *

PART 778--[AMENDED]

4. Section 778.8 is amended by revising:

i. paragraph (a)(1) introductory text;

ii. paragraph (a)(1)(i);

iii. paragraph (a)(5)(i);

iv. paragraph (a)(5)(iv)(B);

v. paragraph (a)(5)(v), to read as follows:

Sec. 778.8 Chemical precursors and biological agents, and associated

equipment, software, and technology.

(a) * * *

(1) Chemicals identified in ECCN 1C60 require a validated license

for export from the United States to all destinations except 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, and the United

Kingdom.

(i) A validated license is required for chemical mixtures

containing any

[[Page 54033]]

chemicals identified in ECCN 1C60. See Note 2 of ECCN 1C60 and ECCN

1C95 on the Commerce Control List (Sec. 799.1 of this subchapter) for

further details on the concentrations of chemicals that require a

validated license.

* * * * *

(5) * * *

(i) General License GTDU, as authorized in ECCN 1E60C, is not

available for technical data for the production of chemical precursors

described in paragraph (a)(1) of this section, except to 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, and the United

Kingdom;

* * * * *

(iv) * * *

(B) This prohibition on use of General License GTDU, as authorized

in ECCN 1E60C, does not apply to exports to 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, and the United Kingdom.

(v) General License GTDU, as authorized in ECCN 1D60C, is available

only for process control software that is specifically configured to

control or initiate the production of chemical weapons precursors

controlled by ECCN 1C60 and only to 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, and the United Kingdom.

* * * * *

5. Section 778.9 is amended by revising paragraph (c) to read as

follows:

Sec. 778.9 Activities of U.S. persons.

* * * * *

(c) No U.S. person shall, without a validated license or other

authorization by BXA, participate in the design, construction, or

export of a whole plant to make chemical weapons precursors identified

in ECCN 1C60, in countries other than 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, and the United Kingdom.

* * * * *

6. Supplement No. 3 to Part 778 (formally reserved) is added to

read as follows:

Supplement No. 3 to Part 778--Chemical Mixtures: De Minimis Exceptions

Examples

This supplement contains examples on applying the de minimis

exceptions for chemical mixtures containing precursor and

intermediate chemicals controlled under ECCN 1C60.

In ECCN 1C60, 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.

Example One

A mixture contains the following components:

90% polymer polyol (a liquid raw material used to make polyurethane

polymers)

10% Australia Group (AG)-controlled chemical eligible for 25% de

minimis exemption

Note: The polymer does not dissolve the AG-controlled chemical.

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 the provisions of

general license G-DEST to all destinations except Iran, Syria, and

Country Groups S and Z.

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.

Example Two

An automotive coolant (antifreeze) is a mixture of the following

components:

75% ethylene glycol

10% additive package

15% water

Note: 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.

To determine if this mixture requires an individual validated

license (IVL) 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 1C60C.

Accordingly, since this concentration is above the threshold

concentration of 10% applicable to this category of AG-controlled

chemical under the chemical mixtures rule, an IVL is required to all

destinations except AG member countries.

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.

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 1C60C. Accordingly, since this concentration

is above the threshold concentration of 25% applicable to this

category of AG-controlled chemicals under the chemical mixtures

rule, an IVL is required to all destinations except AG member

countries.

Example Four

A mixture contains the following components:

10% water

22% Chemical A

21% Chemical B

20% Chemical C

19% Chemical D

8% Chemical E

Note: 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.

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

[[Page 54034]]

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 the provisions of

general license G-DEST to all destinations except Iran, Syria, and

Country Groups S and Z.

7. Supplement No. 5 to Part 778 (Dual-Use Chemical and Biological

Equipment; Regions, Countries, and Other Destinations), is amended by

removing ``Romania'' from the list of countries.

PART 799--[AMENDED]

Supplement No. 1 to Sec. 799.1 [Amended]

8. In Category 1 (Materials), ECCN 1C60C, 1D60C and 1E60C are

amended by revising the Requirements section, and a new ECCN 1C95F is

added after 1C94F, respectively, as follows:

1C60C Precursor and Intermediate Chemicals Used in the Production of

Chemical Warfare Agents and Certain Mixtures Containing Such Chemicals

Requirements

Validated License Required: QSTVWYZ, except 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, and the United Kingdom. (see Note 4)

Unit: Liters or kilograms as appropriate

Reason for Control: CB

GLV: $0

GCT: No

GFW: No

Notes: 1. Sample Shipments: Certain sample shipments of

chemicals controlled under ECCN 1C60 may be made without a validated

license, as provided by the following rules:

a. The following chemicals are not eligible for sample

shipments: 0-Ethyl-2-diisopropylaminoethyl methylphosphonite (QL)

(C.A.S. #57856-11-8), Ethylphosphonyl difluoride (C.A.S. #753-98-0),

and Methylphosphonyl difluoride (C.A.S. #676-99-3).

b. The following countries are not eligible to receive sample

shipments: Iran, Syria, and Country Groups S and Z.

c. Sample Shipments: a validated license is not required for

sample shipments when the cumulative total of these shipments does

not exceed a 55-gallon container or 200 kg of each chemical to any

one consignee per calendar year. Multiple sample shipments, in any

quantity, not exceeding the totals indicated in this paragraph may

be made under General License G-DEST, subject to the stipulations of

this Note 1.

d. The exporter is required to submit a quarterly written report

for shipments of samples made under this Note 1. The report must be

on company letterhead stationery identifying the chemical(s),

Chemical Abstract Service Registry (C.A.S.) number(s),

quantity(ies), the ultimate consignee's name and address, and the

date exported. The report should be sent to the Bureau of Export

Administration, Room 2705, Washington, DC 20230, clearly marked

``Report of Sample Shipments of Chemical Precursors'' at the top of

the first page and on the envelope.

2. Mixtures: Mixtures that contain certain concentrations of

precursor and intermediate chemicals are subject to the following

licensing requirements under this ECCN:

a. A Validated License is required, regardless of the

concentrations in the mixture, for the following chemicals: 0-Ethyl-

2-diisopropylaminoethyl methylphosphonite (QL) (C.A.S.#57856-11-8),

Ethylphosphonyl difluoride (C.A.S.#753-98-0) and Methylphosphonyl

difluoride (C.A.S.#676-99-3);

b. A Validated License is required when at least one of the

following chemicals constitutes more than 10 percent of the weight

of the mixture on a solvent free basis: Arsenic trichloride

(C.A.S.#7784-34-1), Benzilic acid (C.A.S.#76-93-7), Diethyl

ethylphosphonate (C.A.S.#78-38-6), Diethyl methylphosphonite

(C.A.S.#15715-41-0), Diethyl-N,N-dimethylphosphoroamidate

(C.A.S.#2404-03-7), N,N-Diisopropyl-beta-aminoethane thiol

(C.A.S.#5842-07-9), N,N-Diisopropyl-2-aminoethyl chloride

hydrochloride (C.A.S.#4261-68-1), N,N-Diisopropyl-beta-aminoethanol

(C.A.S.#96-80-0), N,N-Diisopropyl-beta-aminoethyl chloride

(C.A.S.#96-79-7), Dimethyl ethylphosphonate (C.A.S.#6163-75-3),

Dimethyl methylphosphonate (C.A.S.#756-79-6), Ethylphosphonous

dichloride [Ethylphosphinyl dichloride] (C.A.S.#1498-40-4),

Ethylphosphonus difluoride [Ethylphosphinyl difluoride] (C.A.S.#430-

78-4), Ethylphosphonyl dichloride (C.A.S.#1066-50-8),

Methylphosphonous dichloride [Methylphosphinyl dicloride]

(C.A.S.#676-83-5), Methylphosphonous difluoride [Methylphosphinyl

difluoride] (C.A.S.#753-59-3), Methylphosphonyl dichloride

(C.A.S.#676-97-1), Pinacolyl alcohol (C.A.S.#464-07-3), 3-

Quinuclidinol (C.A.S.#1619-34-7), and Thiodiglycol (C.A.S.#111-48-

8); (Related ECCN: 1C95F)

c. A Validated License is required when at least one of all

other chemicals in the List of Items Controlled constitutes more

than 25 percent of the weight of the mixture on a solvent free basis

(related ECCN: 1C95F); and

d. A Validated License is not required under this entry for

mixtures when the controlled chemical is a normal ingredient in

consumer goods packaged for retail sale for personal use. Such

consumer goods are controlled by ECCN 1C96G.

e. Calculation of concentrations of AG-controlled chemicals.

1. Usual Commercial Purposes. In calculating the percentage of

an AG controlled chemical in a mixture (solution), any other

chemical must be excluded if it was not added for usual commercial

purposes, but was added for the sole purpose of circumventing the

Export Administration Regulations.

2. ``Solvent Free Basis Requirement.'' When calculating the

percentage, by weight, of components in a chemical mixture, you must

exclude from the calculation any component of the mixture that acts

as a solvent.

3. Solvent--For purposes of this ECCN ``A substance capable of

dissolving another substance to form a uniformly dispersed mixture

(solution)''.

Solvents are liquids at standard temperature and

pressure (STP).

In no instance is an AG controlled chemical considered

a ``solvent''.

All ingredients of mixtures are expressed in terms of

weight.

The solvent component of the mixture converts it into a

solution.

3. Compounds: A validated license is not required under this

entry for chemical compounds created with any chemicals identified

in this ECCN 1C60, unless those compounds are also identified in

this entry.

4. Special Chemical License Available: See Sec. 773.9 of this

subchapter.

Technical Notes: 1. For purposes of this ECCN 1C60, a

``mixture'' is defined as a solid, liquid or gaseous product made up

of two or more components that do not react together under normal

storage conditions.

2. The scope of this control applicable to Hydrogen Fluoride

(Item 25 in List of Items Controlled) includes its liquid, gaseous,

and aqueous phases, and hydrates.

3. All de minimis exclusions of this entry extend to all

mixtures including those that contain no solvents.

4. A Solvent is defined as a substance capable of dissolving

another substance to form a uniformly dispersed mixture (solution).

For examples and clarification of the term ``solvent free'' basis,

see Supplement No. 3 to Part 778.

* * * * *

1C95F Mixtures Containing Precursor and Intermediate Chemicals Used in

the Production of Chemical Warfare Agents That Are Not Controlled by

ECCN 1C60

Requirements

Validated License Required: SZ, Iran

Unit: Liters or kilograms as appropriate

Reason for Control: FP

GLV: $0

GCT: No

GFW: No

Note: For calculation of de minimis quantities of AG-controlled

chemicals in mixtures, see ECCN 1C60 and Supplement 3 to Part 773.

* * * * *

1D60C Software for Process Control That is Specifically Configured To

Control or Initiate Production of the Chemical Precursors Controlled by

ECCN 1C60

Requirements

Validated License Required: QSTVWYZ, except 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,

[[Page 54035]]

Spain, Sweden, Switzerland, and the United Kingdom.

Unit: $ value

Reason for Control: CB

GTDR: No

GTDU: Only to countries listed above as not subject to validated

license

* * * * *

1E60C Technology for the Production and/or Disposal of Chemical

Precursors Described in ECCN 1C60C, and Technology as Described in the

List Below for Facilities Designed or Intended to Produce Chemicals

Described in ECCN 1C60

Requirements

Validated License Required: QSTVWYZ, except 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, and

the United Kingdom.

Reason for Control: CB

GTDR: No

GTDU: Only to countries listed above as not subject to validated

license

* * * * *

9. In Supplement No. 1 to Sec. 799.2, the introductory text to

Interpretation 23 is revised to read as follows:

Supplement No. 1 to Sec. 799.2--Interpretations

* * * * *

Interpretation 23: Precursor Chemicals

Following is a list of chemicals controlled by ECCN 1C60C that

includes their Chemical Abstract Service Registry (C.A.S.) number

and synonyms (i.e., alternative names). These chemicals require a

validated license to all countries except 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, and the United

Kingdom.

* * * * *

Dated: October 13, 1995.

Iain S. Baird,

Deputy Assistant Secretary for Export Administration.

[FR Doc. 95-25900 Filed 10-18-95; 8:45 am]

BILLING CODE 3510-DT-P