Expansion of General License GLX and GTDR

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 771, 779 and 799

[Docket No. 951211296-5296-01]

RIN 0694-AB30

Expansion of General License GLX and GTDR

AGENCY: Bureau of Export Administration.

ACTION: Final rule.

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SUMMARY: This final rule revises the Export Administration Regulations

(EAR) by expanding General License GLX eligibility to include:

microprocessors with a composite theoretical performance not exceeding

500 million theoretical operations per second; memory integrated

circuits; certain digital integrated circuits; field programmable gate

arrays and logic arrays; portable (personal) or mobile radiotelephones

not capable of end-to-end encryption; and software to protect against

computer viruses.

In addition, revisions have been made to expand eligibility for

General License GTDR with written assurance to include virus protection

software controlled under ECCN 5D13A.c.

This rule also revises the list of ``Additional Items Eligible for

General License GLX'' included in a supplement to the General License

section of the EAR to reflect the expansion of General License GLX, and

makes editorial corrections to the permissive reexport provisions for

technical data.

The expansion of General License GLX and GTDR to include additional

items will reduce paperwork and licensing delays for exporters, and

will focus controls on exports that are of direct strategic concern.

EFFECTIVE DATE: This rule is effective December 20, 1995.

FOR FURTHER INFORMATION CONTACT:

For questions of a general nature, call Nancy Crowe, Bureau of Export

Administration, Telephone: (202) 482-2440.

For questions of a technical nature on digital mobile telephones

call Joseph Young, Bureau of Export Administration, Telephone: (202)

482-4197.

[[Page 65527]]

For questions of a technical nature on semiconductors call Robert

Lerner, Bureau of Export Administration, Telephone: (202) 482-3710.

SUPPLEMENTARY INFORMATION:

Background

In response to the realities of a post-Cold War era, the Bureau of

Export Administration published a final rule in the Federal Register on

April 4, 1994, (59 FR 15621) that established General License GLX in

section 771.20 of the Export Administration Regulations (EAR). General

License GLX allows exports of many items, without the requirement of an

individual validated license, to civil end-users and end-uses in

formerly COCOM-proscribed destinations. This general license is

available for items previously covered by Administrative Exception

Notes in the Commerce Control List (CCL), with certain specified

exceptions and additions noted in the EAR. General License GLX is not

available for exports to military end-users or for known military end-

uses. In addition to conventional military activities, military end-

uses include any proliferation activities described in Part 778 of the

EAR. Retransfers to military end-users or end-uses in countries

eligible for General License GLX are strictly prohibited without prior

authorization from the Department of Commerce.

Currently, most computer and telecommunications equipment listed on

the CCL are eligible for General License GLX, except for most portable

radiotelephones, virus protection software, and electronic devices and

components. Since the formerly COCOM-proscribed destinations as well as

the People's Republic of China are emerging markets for these items,

and because this step is consistent with the national security and

foreign policy objectives of the United States, this rule expands

General License GLX for such items to ensure U.S. manufacturers remain

competitive in these areas.

This rule expands General License GLX to include: microprocessors

with a composite theoretical performance not exceeding 500 million

theoretical operation per second identified under ECCN 3A01A.a.3.;

memory integrated circuits identified under ECCN 3A01A.a.4.; digital-

to-analog converters identified under ECCN 3A01.a.5.b.; field

programmable gate arrays and logic arrays identified under ECCN

3A01A.a.7., and a.8.; digital integrated circuits identified under ECCN

3A01A.a.11.; portable (personal) or mobile radiotelephones not capable

of end-to-end encryption identified under Export Control Classification

Number (ECCN) 5A11A.a.; and software to protect against computer

viruses identified under ECCN 5D13A.c.

This rule also removes ECCNs 4B01A, 4B02A, 4B03A and 4C01A from

Supplement No. 1 to Part 771 of the EAR, Additional Items Eligible for

General License GLX. This editorial revision conforms the GLX

supplement with the removal of these ECCNs from the CCL on May 16, 1994

(59 FR 25314).

In addition, eligibility for General License GTDR with letter of

assurance has been expanded to include virus protection software

controlled under ECCN 5D13A.c. Note that such software is also eligible

for General License GLX, and exporters may use either general license,

whichever appropriate, provided that the export meets all the

provisions of the general license.

This rule also makes editorial changes to the permissive reexport

provisions for technical data based upon authorization by COCOM

participating countries. Finally, this rule makes editorial changes to

the permissive reexport provisions for the direct product of U.S.-

origin technical to clarify the original intent. These clarifications

do not provide substantive changes to the EAR.

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, and notice of August 15, 1995 (60 FR 42767).

Rulemaking Requirements

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

the purposes of Executive Order 12866.

2. 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. 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, 0694-0007, 0694-0010, and 0694-0023.

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 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.

List of Subjects

15 CFR Parts 771, 799

Exports, Reporting and recordkeeping requirements.

15 CFR Part 779

Computer technology, Exports, Reporting and recordkeeping

requirements, Science and technology.

Accordingly, Parts 771, 779, and 799 of the Export Administration

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

1. The authority citation for 15 CFR Parts 771 and 799 continue 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); and E.O. 12938 of November 14,

1994 (59 FR 59099 of November 16, 1994).

2. The authority citation for 15 CFR Part 779 continues to read as

follows:

[[Page 65528]]

Authority: Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et

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

seq.); Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et seq.), as

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

U.S.C. 2139a); 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. 12730 of September

30, 1990 (55 FR 40373, October 2, 1990), as continued by Notice of

September 25, 1992 (57 FR 44649, September 28, 1992); E.O. 12924 of

August 19, 1994 (59 FR 43437, August 23, 1994); and E.O. 12938 of

November 14, 1994 (59 FR 59099 of November 16, 1994).

PART 771--[AMENDED]

3. Supplement No. 1 to Part 771, is revised to read as follows:

Supplement No. 1 to Part 771--Additional Items Eligible for General

License GLX

Note: Portions of some items listed in this Supplement are

controlled for missile technology (MT), nuclear proliferation (NP),

or foreign policy (FP) reasons. Exporters are reminded that such

portions are not eligible for General License GLX. Refer to the

specific ECCNs to identify those portions of entries subject to MT,

NP, or FP controls.

CATEGORY 1

1D01A

1D02A

CATEGORY 2

2A01A

2A02A

2A03A

2A04A

2A06A

2B03A.a

CATEGORY 3

3A01A.a.3. (up to 500 Mtops only)

3A01A.a.4.

3A01A.a.5 (except a.5.a.)

3A01A.a.7.

3A01A.a.8.

3A01A.a.11

3A02A.h.

CATEGORY 4

4A03A.d (having a 3-D vector rate less than 10M vectors/sec.)

4A03A.f

CATEGORY 5

5A02A (except .h and .i)

5A03A

5A04A

5A05A

5A06A

5A11A.a (portable or mobile radiotelephones for use with

commercial civil cellular radiocommunications systems, not capable of

end-to-end encryption)

5B01A

5B02A

5C01A

5D01A

5D02A

5D03A

5D13A.c

CATEGORY 6

6A01A.b

6A02A.a.4

6A03A.a.1

6A04A.f

6A05A.c.2.a

6A05A.d

6A05A.e

6B05A

6A08A.b

6A08A.c

6A08A.l.1.

6C02A.c

6C04A.h

6D03A.d

CATEGORY 8

8A02A.e.2

CATEGORY 9

9B01A.a

9B02A.b

9B01A.f

9B01A.h

9B05A

9B06A

PART 779--[AMENDED]

Sec. 779.8 [Amended]

5. Section 779.8 is amended:

a. By revising the word ``exported'' in paragraph (b)(2)(i) to read

``reexported'';

b. by revising the phrase ``export or reexport'' in paragraph

(b)(2)(ii), (b)(2)(iii) and (b)(2)(iv) to read ``reexport''; and

c. by revising the phrase ``export or reexport'' in paragraph

(b)(3) to read ``export from abroad''.

PART 799--[AMENDED]

Supplement No. 1 to Sec. 799.1--[Amended]

6. In Supplement No. 1 to Section 799.1, section II of Category 5

(Telecommunications and ``Information Security''), ECCN 5D13A is

amended by revising the Requirements section to read as follows:

5D13A Specific ``Software'' as Follows

Requirements

Validated License Required: QSTVWYZ

Unit: $ value

Reason for Control: NS

GTDR: Yes, for 5D13.c and software described in Advisory Note 5

only. (See Note)

GTDU: No

Note: Exporter must have determined that the software is not

controlled by the Office of Defense Trade Controls, Department of

State, before using this general license.

* * * * *

Dated: December 14, 1995.

Sue E. Eckert,

Assistant Secretary for Export Administration.

[FR Doc. 95-30776 Filed 12-19-95; 8:45 am]

BILLING CODE 3510-DT-P