Commercial Communications Satellites and Hot Section Technology for the Development, Production or Overhaul of Commercial Aircraft Engines

Federal RegisterOct 21, 1996

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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 734, 740, 742, 752, 771A, 774, 776A and 799A

[Docket No. 960928265-6265-01]

RIN 0694-AB09

Commercial Communications Satellites and Hot Section Technology

for the Development, Production or Overhaul of Commercial Aircraft

Engines

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Interim final rule.

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SUMMARY: This interim final rule amends parts 774 and 799A of the

Export Administration Regulations (the Commerce Control List) by

revising Export Control Classification Numbers (ECCNs) 9A04A and 9A004

to control all commercial communications satellites. This interim final

rule also amends the Export Administration Regulations (EAR) by

imposing enhanced national security and foreign policy controls on all

commercial communications satellites controlled under ECCNs 9A04.a. and

9A004.a. and hot section technology for the development, production or

overhaul of commercial aircraft engines controlled under ECCNs 9E03.a.1

through a.12, .f and related controls, and 9E003.a.1 through a.12., .f

and related controls, to supplement the national security controls on

those items. The provisions of this interim final rule apply for items

transferred from the USML to the CCL and to license applications for

those items received after the effective date of this rule.

This interim final rule also amends the EAR to exclude commercial

communications satellites and hot section technology from the de

minimis provisions for items and commingled technology exported from

abroad, from the mandatory foreign availability decontrol or export

licensing provisions of the EAR, and from Special Comprehensive License

eligibility. Finally, this interim final rule also amends the licensing

policy provisions of parts 742 and 776A of the EAR to reflect these new

national security and foreign policy controls, providing for case-by-

case review of applications for export and reexport to all destinations

to determine if the export or reexport is consistent with U.S. national

security and foreign policy interests.

Exporters are advised that license applications for commercial

communications satellites controlled under ECCN 9A04.a. and 9A004.a.,

and hot section technology controlled under ECCN 9E03.a.1. through a.12

and .f, and related controls, and 9E003.a.1. through a.12 and .f, and

related controls, will be subject to full interagency review in

accordance with Executive Order 12981 of December 5, 1995 (60 FR

62981), as amended.

The EAR have been totally revised by an interim rule published on

March 25, 1996 (61 FR 12714) that provides for a transition period

within which exporters can take advantage of both the old rules and the

new rules until November 1, 1996. Therefore, this interim final rule

and all other amendments to the EAR during the transition period will

amend both the new EAR and the old EAR, which are now designated with

the letter ``A'' following the part number.

DATES Effective Date: This interim final rule is effective October 21,

1996 except the amendments to parts 776A and 799A are effective October

21, 1996 until November 1, 1996.

Comments: Comments must be received December 5, 1996.

ADDRESSES: Written comments should be sent to Nancy Crowe, Regulatory

Policy Division, Office of Exporter Services, Bureau of Export

Administration, Room 2705, 14th Street and Pennsylvania Avenue, N.W.,

Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT: Gene Christiansen, Office of Strategic

Trade, Telephone: (202) 482-2984.

SUPPLEMENTARY INFORMATION:

Background

On October 23, 1992, the Bureau of Export Administration added a

new ECCN 9A04 to the CCL to control certain commercial communications

satellites previously controlled on the USML.

On March 25, 1996, BXA published an interim rule in the Federal

and redesignated the parts of the EAR prior to publication of that rule

(15 CFR parts 768-799) by including an ``A'' following the part number

(e.g., old part 768 is

[[Page 54541]]

now part 768A). The March 25 rule was effective April 24, 1996, and all

EAR parts designated with ``A'' are effective until November 1, 1996.

This interim final rule therefore amends the relevant parts of the EAR

that end in ``A'' that were in effect prior to April 25, 1996 as well

as the provisions of the new EAR. For example, commercial

communications satellites are included under ECCN 9A04 in the old

regulations (Supplement No. 1 Sec. 799A.1 of the EAR), and under ECCN

9A004 in the new regulations (Supplement No. 1 part 774 of the EAR).

Hot section technology for commercial aircraft engines is under ECCN

9E03 in the old regulations, and ECCN 9E003 in the new regulations.

This interim final rule amends ECCNs 9A04 and 9A004 on the CCL by

removing the nine characteristics that identified commercial

communications satellites under the jurisdiction of the Department of

State. Such satellites are therefore now controlled on the CCL. The

Department of State is publishing in the Federal Register a separate

rule that removes commercial communications satellites from the USML.

This interim final rule also amends the EAR by expanding national

security controls and imposing foreign policy controls on commercial

communications satellites controlled under ECCNs 9A04 and 9A004.

Space launch vehicles and all detailed design, development,

production, or manufacturing data for all spacecraft including

satellites, regardless of which government agency has jurisdiction over

the export of the spacecraft, remains subject to the licensing

authority of the Department of State. Commercial communications

satellites are subject to Commerce licensing jurisdiction even if they

include the individual munitions list systems, components, or parts

identified in Category XV(f) of the USML. In all other cases, these

systems, components, or parts remain on the USML, except that non-

embedded, solid propellant orbit transfer engines (``kick motors'') are

subject to Commerce licensing jurisdiction (and not controlled under

the USML) when they are to be utilized for a specific commercial

communications satellite launch, provided the solid propellant ``kick

motor'' being utilized is not specifically designed or modified for

military use or capable of being restarted after achievement of mission

orbit (such orbit transfer engines are always controlled under Category

IV of the USML). Technical data, as defined in 120.21 of the ITAR, and

defense services as defined in 120.8 of the ITAR, related to the

systems, components, or parts referred to in Category XV(f) of the USML

are always controlled under the USML, even when the satellite itself is

licensed by the Department of Commerce.

Technical data provided to the launch provider (form, fit,

function, mass, electrical, mechanical, dynamic/environmental,

telemetry, safety, facility, launch pad access, and launch parameters)

for commercial communications satellites that describe the interfaces

for mating of the satellite to the launch vehicle and parameters for

launch (e.g. orbit, timing) of the satellite is under Commerce

jurisdiction. Other technical data and all defense services and

technical assistance for satellites and/or launch vehicles, including

compatibility, integration, or processing data are controlled and

subject to licensing by the Department of State, in accordance with 22

CFR Part 120 through 130. Approval for such technical assistance will

require a Technical Assistance Agreement (TAA) and may require U.S.

Government oversight.

This interim final rule also revises the List of Items Controlled

under ECCNs 9E003 and 9E03 by adding a new paragraph .f to control

technology not otherwise controlled in 9E003.a.1. through a.12 and

9E03.a.1. through a.12, and currently used in the development,

production or overhaul of hot section parts and components of civil

derivatives of military engines controlled on the U.S. Munitions List.

This interim final rule also imposes enhanced national security and

foreign policy controls on hot section technology for the development,

production or overhaul of commercial aircraft engines controlled under

ECCN 9E03.a.1. through a.12., .f and related controls, and 9E003.a.1.

through a.12., .f and related controls. Note that this interim final

rule does not change controls on developmental aircraft controlled

under ECCNs 9A91 and 9A991. Hot section technology specifically

designed, modified, or equipped for military uses or purposes, or

developed principally with U.S. Department of Defense funding, is

subject to the jurisdiction of the Department of State. Technology is

subject to the EAR when actually applied to a commercial aircraft

engine program. Exporters may seek to establish commercial application

either on a case-by-case basis through submission of documentation

demonstrating application to a commercial program in support of a

request for an export license from Commerce in respect to a specific

export or, in the case of use for broad categories of aircraft,

engines, or components, a commodity jurisdiction determination from

State.

A license will be required for all exports and reexports to all

destinations, except Canada, of commercial communications satellites

controlled under ECCNs 9A04.a. and 9A004.a. and for hot section

technology controlled under ECCNs 9E03.a.1. through a.12 and .f. and

9E003.a.1. through a.12 and .f. These items are not eligible for a

Special Comprehensive License, and they are not subject to the

mandatory foreign availability decontrol or export licensing provisions

of the EAR. Exporters are advised that license applications for

commercial communications satellites and hot section technology will be

subject to full interagency review in accordance with Executive Order

12981 of December 5, 1995 (60 FR 62981). Applications for exports and

reexports will be reviewed on a case-by-case basis to determine whether

the export or reexport is consistent with U.S. national security and

foreign policy interests. Specifically, the following factors are among

those that will be considered to determine what action will be taken on

license applications:

(1) The country of destination;

(2) The ultimate end-users;

(3) The technology involved;

(4) The specific nature of the end-use(s); and

(5) The types of assurance against unauthorized use or diversion

that are given in a particular case.

This interim final rule also amends part 734 of the EAR to exclude

commercial communications satellites and hot section technology from

the de minimis provisions for items and commingled technology exported

from abroad, and amends parts 740 and 771A to exclude commercial

communications satellites and hot section technology from License

Exception GOV and General License GCG. Finally, this interim final rule

also amends parts 738 and 742, and Secs. 776A.2 and 776A.20 of the EAR

to reflect the new foreign policy controls imposed by this interim

final rule.

This interim final rule involves no new curtailment of exports,

because the transfer or removal of items from the United States

Munitions List to the CCL maintains a continuity of controls.

Therefore, the provisions regarding the impact of new controls do not

apply and contract sanctity also does not apply to this imposition of

controls.

Consistent with the provisions of section 6 of the Export

Administration Act, a foreign policy report was submitted to Congress

on October 17, 1996, notifying the Congress of the

[[Page 54542]]

Department's intention to impose controls on commercial communications

satellite and hot section technology associated with commercial

aircraft engines that will be controlled on the CCL and subject to new

control procedures.

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, notice of August 15, 1995 (60 FR 42767), and August 14, 1996

(61 FR 42527).

Rulemaking Requirements

1. This interim final rule has been determined to be significant

for purposes of E. O. 12866.

2. Notwithstanding any other provision of the law, no person is

required to respond to, nor shall any 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 interim

final 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 0694-0088.

3. This interim final 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 interim final rule

by under 5 U.S.C. 553 or by any other law, this rule is not subject to

the requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et

seq.)

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 (Sec. 5 U.S.C. 553(a)(1)). Further, no

other law requires that a notice of proposed rulemaking and an

opportunity for public comment be given for this interim final rule.

However, because of the importance of the issues raised by these

regulations, this rule is issued in interim final form and comments

will be considered in the development of final regulations.

Accordingly, the Department encourages interested persons who wish to

comment to do so at the earliest possible time to permit the fullest

consideration of their views.

The period for submission of comments will close December 5, 1996.

The Department will consider all comments received before the close of

the comment period in developing final regulations. Comments received

after the end of the comment period will be considered if possible, but

their consideration cannot be assured. The Department will not accept

public comments accompanied by a request that a part or all of the

material be treated confidentially because of its business proprietary

nature or for any other reason. The Department will return such

comments and materials to the person submitting the comments and will

not consider them in the development of final regulations. All public

comments on these regulations will be a matter of public record and

will be available for public inspection and copying. In the interest of

accuracy and completeness, the Department requires comments in written

form.

Oral comments must be followed by written memoranda, which will

also be a matter of public record and will be available for public

review and copying. Communications from agencies of the United States

Government or foreign governments will not be made available for public

inspection.

The public record concerning these regulations will be maintained

in the Bureau of Export Administration Freedom of Information Records

Inspection Facility, Room 4525, Department of Commerce, 14th Street and

Pennsylvania Avenue, N.W., Washington, DC 20230. Records in this

facility, including written public comments and memoranda summarizing

the substance of oral communications, may be inspected and copied in

accordance with regulations published in Part 4 of Title 15 of the Code

of Federal Regulations. Information about the inspection and copying of

records at the facility may be obtained from Margaret Cornejo, Bureau

of Export Administration Freedom of Information Officer, at the above

address or by calling (202) 482-5653.

List of Subjects

15 CFR Part 734

Administrative practice and procedure, Exports, Foreign trade.

15 CFR Parts 742 and 774

Exports, Foreign trade.

15 CFR Parts 740 and 752

Administrative practice and procedure, Exports, Foreign trade,

Reporting and recordkeeping requirements.

15 CFR Parts 771A, 776A and 799A

Exports, Reporting and recordkeeping requirements.

Accordingly, parts 734, 742, 752, 771A, 774, 776A and 799A of the

Export Administration Regulations (15 CFR Parts 730-799) are amended as

follows:

1. The authority citation for 15 CFR part 734 continues to read as

follows:

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; E.O. 12938, 59

FR 59099, 3 CFR, 1994 Comp., p. 950; Notice of August 15, 1995 (60

FR 42767, August 17, 1995); Notice of August 14, 1996 (61 FR 42527).

2. The authority citation for 15 CFR part 740 continues to read as

follows:

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); Notice of August 14, 1996

(61 FR 42527).

3. The authority citation for 15 CFR part 742 continues to read as

follows:

Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;

18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a;

E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58

FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR,

1994 Comp., p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.

950; Notice of August 15, 1995 (60 FR 42767, August 17, 1995);

Notice of August 14, 1996 (61 FR 42527).

4. The authority citation for 15 CFR part 752 continues to read as

follows:

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); Notice of August 14, 1996

(61 FR 42527).

5. The authority citation for 15 CFR part 774 continues to read as

follows:

Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;

10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C.

287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; Sec. 201, Pub. L. 104-

58, 109 Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C.

2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50

U.S.C. app. 5; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917;

Notice of August 15, 1995 (60 FR 42767, August 17, 1995); Notice of

August 14, 1996 (61 FR 42527).

6. The authority citation for 15 CFR part 776A 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

[[Page 54543]]

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.

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); E.O. 12938 of November 14, 1994 (59 FR 59099 of November 16,

1994).

7. The authority citation for 15 CFR parts 771A and 799A 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; 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); E.O. 12938 of November 14, 1994 (59 FR 59099 of

November 16, 1994).

PART 734--[AMENDED]

Sec. 734.4 [Redesignated (b) through (f) as (c) through (g)]

8. Section 734.4 is amended by:

a. Redesignating paragraphs (b) through (f) as (c) through (g)

respectively; and

b. Adding new paragraphs (b) and (h) to read as follows:

Sec. 734.4 De minimis U.S. content.

* * * * *

(b) There is no de minimis level for the reexport of foreign-origin

items that incorporate items controlled by ECCN 9A004.a.

* * * * *

(h) Notwithstanding the provisions of paragraphs (c) and (d) of

this section, U.S.-origin technology controlled under ECCNs 9E003.a.1.

through a.12, and .f, and related controls 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 technology prepared or engineered

abroad for the design, construction, operation, or maintenance of any

plant or equipment, or part thereof, which is based on or uses any

U.S.-origin technology controlled under ECCNs 9E003.a.1. through a.12,

and .f, and related controls is subject to the EAR.

PART 740--[AMENDED]

Sec. 740.6 [Amended]

9. Section 740.6 is amended by:

a. Redesignating paragraphs (b)(2)(iii) (A) through (C) as

(b)(2)(iii) (B) through (D);

b. Redesignating paragraphs (b)(2)(iv) (A) through (C) as

(b)(2)(iv) (B) through (D); and

c. Adding new paragraphs (b)(2)(iii)(A) and (b)(2)(iv)(A) to read

as follows:

Sec. 740.6 Governments and international organizations (GOV).

* * * * *

(b) * * *

(2) * * *

(iii) * * *

(A) Commercial communications satellites controlled under ECCN

9A004 and hot section technology for the development, production or

overhaul of commercial aircraft engines controlled under ECCN 9E003.a.1

through a.12, and .f, and related controls;

* * * * *

(iv) * * *

(A) Commercial communications satellites controlled under ECCN

9A004 and hot section technology for the development, production or

overhaul of commercial aircraft engines controlled under ECCN 9E003.a.1

through a.12, and .f, and related controls;

* * * * *

PART 742--[AMENDED]

10. Part 742 is amended by adding new Sec. 742.14 to read as

follows:

Sec. 742.14 Significant items: commercial communications satellites;

hot section technology for the development, production or overhaul of

commercial aircraft engines, components, and systems.

(a) License requirements. Licenses are required for all

destinations, except Canada, for ECCNs having an ``SI'' under the

``Reason for Control'' paragraph. These items include commercial

communications satellites controlled by ECCN 9A004.a., and hot section

technology for the development, production or overhaul of commercial

aircraft engines controlled under ECCN 9E003.a.1. through a.12., .f,

and related controls.

(b) Licensing policy. Pursuant to section 6 of the Export

Administration Act of 1979, as amended (EAA), foreign policy controls

apply to commercial communications satellites controlled under 9A004.a.

and technology required for the development, production or overhaul of

commercial aircraft engines controlled by ECCN 9E003.a.1. through a.12,

.f, and related controls. These controls supplement the national

security controls that apply to those items. Applications for export

and reexport to all destinations will be reviewed on a case-by-case

basis to determine whether the export or reexport is consistent with

U.S. national security and foreign policy interests. The following

factors are among those that will be considered to determine what

action will be taken on license applications:

(1) The country of destination;

(2) The ultimate end-user(s);

(3) The technology involved;

(4) The specific nature of the end-use(s); and

(5) The types of assurance against unauthorized use or diversion

that are given in a particular case.

available for license applications reviewed under this Sec. 742.14.

(d) [Reserved]

PART 752--[AMENDED]

Sec. 752.3 [Amended]

11. Section 752.3 is amended by redesignating paragraphs (a)(7) and

(a)(8) as (a)(9) and (a)(10) respectively, and by adding new paragraphs

(a)(7) and (a)(8) to read as follows:

Sec. 752.3 Eligible items.

(a) * * *

(7) Commercial communications satellites controlled under ECCN

9A004.a on the CCL;

(8) Hot section technology for the development, production or

overhaul of commercial aircraft engines controlled under ECCN

9E003.a.1. through a.12. .f, and related controls;

* * * * *

PART 771A--[AMENDED]

12. Section 771A.14 is amended by adding a new paragraph (d)(4) to

read as follows:

Sec. 771A.14 General License GCG; Shipments to agencies of cooperating

government.

* * * * *

[[Page 54544]]

(d) * * *

(4) No commercial communications satellites controlled under ECCN

9A04.a. or hot section technology for the development, production or

overhaul of commercial aircraft engines controlled under ECCN 9E03.a.1

through a.12, and .f, and related controls may be exported under this

general license.

PART 774--[AMENDED]

Supplement to Part 774, Category 9 [Revised]

13. In Supplement No. 1 to part 774 (the Commerce Control List),

Category 9 (Propulsion Systems, Space Vehicles, and Related Equipment),

ECCNs 9A004 and 9E003 are revised to read as follows:

9A004 ``Spacecraft'', (not including their payloads) and specially

designed components therefor that are not subject to the authority of

the Department of State. (See notes.)

License Requirements

Reason for Control: NS, AT, SI.

------------------------------------------------------------------------

Control(s) Country chart

------------------------------------------------------------------------

NS applies to entire entry............... NS Column 1.

AT applies to entire entry............... AT Column 1.

------------------------------------------------------------------------

SI applies to commercial communications satellites controlled by

9A004.a. See Sec. 742.14 of the EAR for additional information.

License Exceptions

LVS: N/A

GBS: N/A

CIV: N/A

List of Items Controlled

Unit: Equipment in number; systems, components, parts and

accessories in $ value.

Related Controls: (1) The corresponding EU list number controls

space launch vehicles (not including their payloads) and other

``spacecraft'' (not identified in this CCL entry). These items are

subject to the export licensing authority of the U.S. Department of

State, Office of Defense Trade Controls (See 22 CFR part 121,

Category XV). For the control status of products contained in

``spacecraft'' payloads, see the appropriate categories of the U.S.

Munitions List (USML). (2) For the control status of items contained

in ``spacecraft'' payloads subject to the EAR, see the appropriate

entries on the CCL.

Related Definition: Transferring registration or operational

control to any foreign person of any commercial communications

satellite controlled by this entry must be authorized on a license

issued by the Bureau of Export Administration. This requirement

applies whether the commercial communications satellite is

physically located in the United States or abroad.

List of Items Controlled

a. Commercial communication satellites;

Technical Note: Commercial communications satellites are subject

to Commerce licensing jurisdiction even if they include the

individual munitions list systems, components, or parts identified

in Category XV(f) of the USML. In all other cases, these systems,

components, or parts remain on the USML, except that non-embedded,

solid propellant orbit transfer engines (``kick motors'') are

subject to Commerce licensing jurisdiction (and not controlled under

the USML) when they are to be utilized for the specific commercial

communications satellite launch, provided the solid propellant

``kick motor'' being utilized is not specifically designed or

modified for military use or capable of being restarted after

achievement of mission orbit (such orbit transfer engines are always

controlled under Category IV of the USML). Technical data (as

defined in Sec. 120.21 of the International Traffic in Arms

Regulations (ITAR)) and defense services (as defined in Sec. 120.8

of the ITAR) related to the systems, components, or parts referred

to in Category XV(f) of the USML are always controlled under the

USML, even when the satellite itself is licensed by the Department

of Commerce.

Note: Military communications satellites or multi-mission

satellites, including commercial communications satellites having

additional non-communication mission(s) or payload(s) are under the

jurisdiction of the Department of State.

b. [Reserved]

c. Other ``spacecraft'' not subject to the export licensing

authority of the U.S. Department of State, Office of Defense Trade

Controls under 22 CFR part 121, Category XV.

Notes: 1. ECCN 9A004.c includes the international space station

being developed, launched and operated under the supervision of the

U.S. National Aeronautics and Space Administration. Exporters

requesting a license from the Department of Commerce for spacecraft

other than the international space station or a commercial

communications satellite specified in 9A004 must provide a statement

from the Department of State, Office of Defense Trade Controls,

verifying that the item intended for export is under the licensing

jurisdiction of the Department of Commerce.

2. All other spacecraft, including all other satellites not

controlled under 9A004 and components, parts, accessories,

attachments, associated equipment, and ground support equipment

therefor are subject to the export licensing authority of the

Department of State.

3. Items on Category XV(f) of the USML that are included in a

commercial communications satellite to be exported under a Commerce

license must be specifically listed on the Commerce license

application. Such items when not included in a specific commercial

communications satellite are under the jurisdiction of the

Department of State.

4. Technical data provided to the launch provider (form, fit,

function, mass, electrical, mechanical, dynamic/environmental,

telemetry, safety, facility, launch pad access, and launch

parameters) for commercial communications satellites that describe

the interfaces for mating of the satellite to the launch vehicle and

parameters for launch (e.g. orbit, timing) of the satellite, are

under Commerce jurisdiction. Other technical data and all defense

services and technical assistance for satellite and/or launch

vehicles, including compatibility, integration, or processing data

are controlled and subject to licensing by the Department of State,

in accordance with 22 CFR parts 120 through 130. Approval for such

technical assistance will require a Technical Assistance Agreement

(TAA) and may require U.S. Government oversight.

5. Once a satellite is launched, items remaining unlaunched are

required to be returned immediately to the United States. If the

satellite launch is canceled or unduly delayed, the satellite and

all support equipment must be returned immediately to the United

States.

6. Detailed design, development, production, or manufacturing

data for all spacecraft, including satellites, regardless of which

agency has jurisdiction over the export, and all systems components,

parts, accessories, attachments, and associated equipment (including

ground support equipment) specifically designed or modified for

articles under Category XV on the United States Munitions List

(including software source code and operating algorithms) are

subject to licensing by the Department of State. This does not

include that level of technical data (including marketing data)

necessary and reasonable for a purchaser to have assurance that a

U.S.-built item intended to operate in space has been designed,

manufactured and tested in conformance with specified contract

requirements (e.g., operational performance, reliability, lifetime,

product quality, or delivery expectations) as well as data necessary

for normal in-orbit satellite operations, to evaluate in-orbit

anomalies, and to operate and maintain associated ground station

equipment (except encryption hardware).

* * * * *

9E003 Other ``technology''.

License Requirements

Reason for Control: NS, AT, SI.

------------------------------------------------------------------------

Control(s) Country chart

------------------------------------------------------------------------

NS applies to entire entry............... NS Column 1.

AT applies to entire entry............... AT Column 1.

------------------------------------------------------------------------

SI applies to 9E003. a.1. through a.12 and f. See Sec. 742.14 of

the EAR for additional information.

License Exceptions

CIV: N/A

TSR: N/A

List of Items Controlled

Unit: N/A.

Related Controls: (1) The corresponding EU List number does not

control technology controlled under 9E003.f. (2) Hot section

technology specifically designed, modified,

[[Page 54545]]

or equipped for military uses or purposes, or developed principally

with U.S. Department of Defense funding, is subject to the

jurisdiction of the Department of State. (3) Technology is subject

to the EAR when actually applied to a commercial aircraft engine

program. Exporters may seek to establish commercial application

either on a case-by-case basis through submission of documentation

demonstrating application to a commercial program in requesting an

export license from Commerce in respect to a specific export or, in

the case of use for broad categories of aircraft, engines, or

components, a commodity jurisdiction determination from State.

Items

a. ``Technology'' ``required'' for the ``development'',

``production'' or overhaul of the following commercial aircraft

engines, components or systems:

a.1. Gas turbine blades, vanes or tip shrouds made from

directionally solidified (DS) or single crystal (CS) alloys having

(in the 001 Miller Index Direction) a stress-rupture life exceeding

400 hours at 1,273 K (1,000 deg.C) at a stress of 200 MPa, based on

the average property values;

a.2. Multiple domed combustors operating at average burner

outlet temperatures exceeding 1,643 K (1370 deg.C), or combustors

incorporating thermally decoupled combustion liners, non-metallic

liners or non-metallic shells;

a.3. Components manufactured from organic ``composite''

materials designed to operate above 588 K (315 deg.C), or from

metal ``matrix'' ``composite'', ceramic ``matrix'', intermetallic or

intermetallic reinforced materials controlled by 1A002 or 1C007;

a.4. Uncooled turbine blades, vanes, tip-shrouds or other

components designed to operate at gas path temperatures of 1,323 K

(1,050 deg.C) or more;

a.5. Cooled turbine blades, vanes or tip-shrouds, other than

those described in 9E003.a.1, exposed to gas path temperatures of

1,643 K (1,370 deg.C) or more;

a.6. Airfoil-to-disk blade combinations using solid state

joining;

a.7. Gas turbine engine components using ``diffusion bonding''

``technology'' controlled by 2E003.b;

a.8. Damage tolerant gas turbine engine rotating components

using powder metallurgy materials controlled by 1C002.b;

a.9. Full authority digital electronic engine controls (FADEC)

for gas turbine and combined cycle engines and their related

diagnostic components, sensors and specially designed components;

a.10. Adjustable flow path geometry and associated control

systems for:

a.10.a. Gas generator turbines;

a.10.b. Fan or power turbines;

a.10.c. Propelling nozzles;

Note 1: Adjustable flow path geometry and associated control

systems do not include inlet guide vanes, variable pitch fans,

variable stators or bleed valves for compressors.

Note 2: 9E003.a.10 does not control ``development'' or

``production'' ``technology'' for adjustable flow path geometry for

reverse thrust.

a.11. Rotor blade tip clearance control systems employing active

compensating casing ``technology'' limited to a design and

development data base;

a.12. Gas bearings for gas turbine engine rotor assemblies;

a.13. Wide chord hollow fan blades without part-span support;

Note: Also see 9E003.f.

b. ``Technology'' ``required'' for the ``development'' or

``production'' of:

b.1. Wind tunnel aero-models equipped with non-intrusive sensors

capable of transmitting data from the sensors to the data

acquisition system;

b.2. ``Composite'' propeller blades or propfans capable of

absorbing more than 2,000 kW at flight speeds exceeding Mach 0.55;

c. ``Technology'' ``required'' for the ``development'' or

``production'' of gas turbine engine components using ``laser'',

water jet or ECM/EDM hole drilling processes to produce holes with:

c.1.a. Depths more than four times their diameter;

c.1.b. Diameters less than 0.76 mm; and

c.1.c. Incidence angles equal to or less than 25 deg.; or

c.2.a. Depths more than five times their diameter;

c.2.b. Diameters less than 0.4 mm; and

c.2.c. Incidence angles of more than 25 deg.;

Technical Note: For the purposes of 9E003.c, incidence angle is

measured from a plane tangential to the airfoil surface at the point

where the hole axis enters the airfoil surface.

d. ``Technology'' ``required'' for the ``development'' or

``production'' of helicopter power transfer systems or tilt rotor or

tilt wing ``aircraft'' power transfer systems:

d.1. Capable of loss-of-lubrication operation for 30 minutes or

more; or

d.2. Having an input power-to-weight ratio equal to or more than

8.87 kW/kg.

e.1 ``Technology'' for the ``development'' or ``production'' of

reciprocating diesel engine ground vehicle propulsion systems having

all of the following:

e.1.a. A box volume of 1.2 m \3\ or less;

e.1.b. An overall power output of more than 750 kW based on 80/

1269/EEC, ISO 2534 or national equivalents; and

e.1.c. A power density of more than 700 kW/m \3\ of box volume;

Technical Note: Box volume: the product of three perpendicular

dimensions measured in the following way:

Length: The length of the crankshaft from front flange to

flywheel face;

Width: The widest of the following:

a. The outside dimension from valve cover to valve cover;

b. The dimensions of the outside edges of the cylinder heads; or

c. The diameter of the flywheel housing;

Height: The largest of the following:

a. The dimension of the crankshaft center-line to the top plane

of the valve cover (or cylinder head) plus twice the stroke; or

b. The diameter of the flywheel housing.

e.2. ``Technology'' ``required'' for the ``production'' of

specially designed components, as follows, for ``high output diesel

engines'':

e.2.a. ``Technology'' ``required'' for the ``production'' of

engine systems having all of the following components employing

ceramics materials controlled by 1C007:

e.2.a.1. Cylinder liners;

e.2.a.2. Pistons;

e.2.a.3. Cylinder heads; and

e.2.a.4. One or more other components (including exhaust ports,

turbocharger, valve guides, valve assemblies or insulated fuel

injectors);

e.2.b. ``Technology'' ``required'' for the ``production'' of

turbocharger systems, with single-stage compressors having all of

the following:

e.2.b.1. Operating at pressure ratios of 4:1 or higher;

e.2.b.2. A mass flow in the range from 30 to 130 kg per minute;

and

e.2.b.3. Variable flow area capability within the compressor or

turbine sections;

e.2.c. ``Technology'' ``required'' for the ``production'' of

fuel injection systems with a specially designed multifuel (e.g.,

diesel or jet fuel) capability covering a viscosity range from

diesel fuel (2.5 cSt at 310.8 K (37.8 deg. C)) down to gasoline fuel

(0.5 cSt at 310.8 K (37.8 deg. C)), having both of the following:

e.2.c.1. Injection amount in excess of 230 mm \3\ per injection

per cylinder;

e.2.c.2. Specially designed electronic control features for

switching governor characteristics automatically depending on fuel

property to provide the same torque characteristics by using the

appropriate sensors;

e.3. ``Technology'' ``required'' for the ``development'' or

``production'' of ``high output diesel engines'' for solid, gas

phase or liquid film (or combinations thereof) cylinder wall

lubrication, permitting operation to temperatures exceeding 723 K

(450 deg. C), measured on the cylinder wall at the top limit of

travel of the top ring of the piston.

f. Technology not otherwise controlled in 9E003.a.1. through

a.12 and currently used in the ``development'', ``production'' or

overhaul of hot section parts and components of civil derivatives of

military engines controlled on the U.S. Munitions List.

PART 776A--[AMENDED]

14. Sections 776A.2 and 776A.20 are added effective October 21,

1996 until November 1, 1996 to read as follows:

Sec. 776A.2 Commercial communications satellites.

Pursuant to section 6 of the Export Administration Act of 1979, as

amended, (EAA), foreign policy controls apply to commercial

communications satellites controlled under 9A04.a. These controls

supplement the national security controls that apply to those items.

(a) License requirements. Individual validated licenses are

required for all exports and reexports of commercial communications

satellites controlled by ECCN 9A04A.a. to all destinations, except

Canada.

(b) License review policy. Applications for export and reexport

[[Page 54546]]

will be reviewed on a case-by-case basis to determine whether the

export or reexport is consistent with U.S. national security and

foreign policy interests. The following factors are among those that

will be considered to determine what action will be taken on individual

license applications:

(1) The country of destination;

(2) The ultimate end-users;

(3) The technology involved;

(4) The specific nature of the end-use(s); and

(5) The types of assurance against unauthorized use or diversion

that are given in a particular case.

* * * * *

Sec. 776A.20 Hot section technology for the development, production or

overhaul of commercial aircraft engines, components or systems.

Pursuant to section 6 of the Export Administration Act of 1979, as

amended, (EAA), an individual validated export license is required for

hot section technology related to the development, production or

overhaul of commercial aircraft engines, components or systems. These

controls supplement the national security controls that apply to those

items.

(a) License requirements. Individual validated licenses are

required for all exports and reexports of hot section technology for

the development, production or overhaul of civil gas turbine engines

controlled by ECCN 9E03A.a.1 through a.12, .f, and related controls to

all destinations, except Canada.

(b) License review policy. Applications for export and reexports

will be reviewed on a case-by-case basis to determine whether the

export or reexport is consistent with U.S. national security and

foreign policy interests. The following factors are among those that

will be considered to determine what action will be taken on individual

license applications:

(1) The country of destination;

(2) The ultimate end-users;

(3) The technology involved;

(4) The specific nature of the end-use(s); and

(5) The types of assurance against unauthorized use or diversion

that are given in a particular case.

PART 799A--[AMENDED]

15. In Supplement No. 1 to Sec. 799A.1 (the Commerce Control List),

Category 9 (Propulsion Systems and Transportation Equipment), ECCNs

9A04A and 9E03A are revised effective October 21, 1996 until November

1, 1996 to read as follows:

9A04A ``Spacecraft'' (not including their payloads), and

specially designed components therefor that are not subject to the

authority of the Department of State. (See notes.)

Note: Space launch vehicles (not including their payloads) and

other ``spacecraft'' (not identified in this CCL entry) are subject

to the export licensing authority of the U.S. Department of State,

Office of Defense Trade Controls (See 22 CFR part 121, Category XV).

For the control status of products contained in ``spacecraft''

payloads, see the appropriate categories of the U.S. Munitions List

(USML). For the control status of items contained in ``spacecraft''

payloads subject to the EAR, see the appropriate entries on the CCL.

Requirements

Validated License Required: QSTVWYZ

Unit: Equipment in number; parts and accessories in $ value

Reason for Control: NS, FP (see Note)

GLV: $0

GCT: No

GFW: No

Note: FP controls apply to items controlled in 9A04.a (see

Sec. 776.2 of this subchapter).

List of Items Controlled

a. Commercial communications satellites;