Revisions to the Export Administration Regulations: Reform of Computer Export Controls; Establishment of General License G-CTP

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 770, 771, 772, 773, 774, 775, 776, 785, 786, 787 and

799

[Docket No. 960103001-6001-01]

RIN 0694-AB36

Revisions to the Export Administration Regulations: Reform of

Computer Export Controls; Establishment of General License G-CTP

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Interim rule.

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

SUMMARY: The Bureau of Export Administration (BXA) is amending the

Export Administration Regulations (EAR), to implement the President's

October 6, 1995, announcement on major reform of computer export

controls.

The President announced a liberalization of export controls on all

computers to countries in North America, most of Western Europe, and

parts of Asia. For certain other countries, including many in Latin

America and Central and Eastern Europe, this rule also liberalizes

export controls on computers. For the former Soviet Union, China and

certain other countries, U.S. export controls will focus on computers

intended for military and proliferation end-uses or users, and ease

controls on exports of computers to civilian customers. Finally, there

will be no change in current policy for computer shipments to terrorist

countries, with the exception of the addition of Sudan to ECCNs 4A94F,

4D94F, 4E94F, and Computer Tier 4 (a grouping of terrorist countries,

for the purpose of computer controls).

This decision will streamline validated license requirements for

U.S. computer manufacturers of computers that are, or will be in the

next two years, widely available in the international market place.

DATES: Effective Date: This rule is effective January 22, 1996.

Comment Date: Comments must be received by February 26, 1996.

ADDRESSES: Written comments (six copies) should be sent to Sharron

Cook, Office of Exporter Services, Bureau of Export Administration,

Department of Commerce, P.O. Box 273, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: For general information contact

Sharron Cook, Regulatory Policy Division, Bureau of Export

Administration, Telephone: (202) 482-2440.

For technical information contact Joseph Young, Strategic Trade

Division, Bureau of Export Administration, Telephone: (202) 482-4197.

SUPPLEMENTARY INFORMATION:

Background

When controls were last revised in 1993, the Administration

recognized that computer technology would continue to change rapidly--

and that it would need to review control levels within 18 to 24 months.

Accordingly, for the past several months, the Administration has

conducted a review of computer export controls that took into account

(1) the rapid advance of computing technology since 1993, (2) our

security and nonproliferation interests, and (3) the need for a policy

that would remain effective over the next 18 to 24 months.

This review found that enormous advances in the power and

capabilities of computing systems coming into widespread commercial use

have occurred and will continue to occur over the next two years. The

commercial computer market is being transformed by the emergence of

workstations containing multiple high-speed microprocessors, the ready

availability of high-speed communications links, and the continuing

rapid progress in software to permit difficult problems to run in

parallel and on networks.

Based on these developments, the Administration has determined that

computers capable of up to 7,000 million theoretical operations per

second (MTOPS) will become widely available in open international

markets within the next two years. The Administration has also

determined that computers with performance capabilities at and above

10,000 MTOPS have a significant number of strategic applications.

The new computer export controls found in this rule are to

implement the following goals, as stated by the President:

To permit the government to calibrate control levels and

licensing conditions depending upon the national security or

proliferation risk posed by exports to a specific destination;

To enhance U.S. national security and preserve the U.S. computer

industrial base by ensuring controls on computer exports are

effective and do not unnecessarily impede legitimate computer

exports; and

To permit the government to track global sales, thereby

illuminating how high performance computing may be used to pursue

critical military applications.

In this interim rule, the term ``supercomputer'' and the separate

supercomputer section in Sec. 776.11 have been removed. The majority of

the new computer controls can now be found in Sec. 776.10 that

generally pertains to computers. Because the term supercomputer was

removed from the EAR, all such references have been removed.

Within General License GCG, Sec. 771.14, the supercomputer

restriction is removed, with the exception that, ``no computers with a

CTP greater than 10,000 MTOPS may be exported to Argentina, Hong Kong,

South Korea, Singapore, and Taiwan without a validated license.'' This

is consistent with the President's announcement of October 6, 1995,

which provides a ceiling for the CTP level for which general licenses

can be used for these countries, except Taiwan and Hong Kong. Hong Kong

and Taiwan have a CTP limitation for computers of 10,000 MTOPS and are

in Computer Tier 2, established by this rule.

In this rule, the supercomputer restriction is also removed from

General Licenses G-TEMP and SAFEGUARDS. All computers are now eligible

for temporary export under the provisions of General License G-TEMP.

Also, all computers are now eligible for export to the International

Atomic Energy Agency (IAEA) under the provisions of General License

SAFEGUARDS.

A new General License G-CTP is established by this rule under

Sec. 771.28. This general license authorizes the export of computers

and specially

[[Page 2100]]

designed components therefor, exported separately or as part of a

system, and related equipment therefor when exported with these

computers as part of a system. These items will be eligible for export

to Computer Tier 1, 2 and 3 countries, for consumption therein. CTP

restrictions will correspond to the different Computer Tiers under the

provisions of Sec. 771.28.

Other areas significantly revised are those dealing with support

documentation for computer export and reexport applications, and

amendment requests. Currently, exporters must submit certain supporting

documents to BXA. This rule authorizes exporters of computers of

unlimited CTP to retain the required support documentation, i.e., BXA-

629P (Statement by Ultimate Consignee and Purchaser), International

Import Certificate (IC), People's Republic of China End-User

Certificate, Indian IC, Bulgarian IC, Czech IC, Hungarian IC, Polish

IC, Romanian IC, or Slovak IC, when submitting an application for

export, reexport or amendment.

Another area of liberalization is Special Licenses. Supplement No.

1 to part 773 (Commodities Excluded from the Special License

Procedures) has been revised to make all computers eligible for export

under special licenses. Exporters may now submit requests for computers

of unlimited CTP to be considered for special licenses.

This rule also makes changes to permissive reexport authority

(Sec. 774.2). Computers of unlimited CTP are eligible for permissive

reexport to and among the former COCOM participating and cooperating

countries, with the exception of Hong Kong and South Korea. Hong Kong

and South Korea will be limited to a CTP of 10,000 MTOPS, because these

countries fall within Computer Tier 2.

Section 776.10, ``Electronic Computers and Related Equipment'', has

been revised by adding paragraphs to implement the new computer reform.

The newly added paragraphs provide safeguard conditions, list

recordkeeping requirements, indicate general license availability, and

establish four Computer Country Tiers with corresponding license

requirements and policy.

Each country of the world is included in one of the Computer Tiers,

including those countries not specifically specified in the President's

announcement of October 6, 1995. Computer Tier 1 consists of Western

Europe, Turkey, Japan, Canada, Mexico, Australia, and New Zealand.

Persons may export computers of unlimited CTP and specially designed

components therefor, exported separately or as part of a system, and

related equipment therefor when exported with these computers as part

of a system to these countries using General License G-DEST or G-CTP

(depending on the CTP of the computer). The rule provides for

permissive reexports to and among these countries under

Sec. 774.2(a)(1).

Examples of the countries that can be found in Computer Tier 2 are

all the countries within Country Group T (except Mexico), South Korea,

ASEAN countries, Hungary, Poland, the Czech Republic, the Slovak

Republic, Slovenia, and South Africa. A complete listing of all the

countries included in Computer Tier 2 can be found in this rule under

Sec. 776.10. For these countries, exports of computers with a CTP less

than or equal to 10,000 MTOPS and specially designed components

therefor, exported separately or as part of a system, and related

equipment therefor when exported with these computers as part of a

system are authorized under General License G-DEST or G-CTP (depending

on the CTP of the computer). Validated licenses are required for

computers with a CTP greater than 10,000 MTOPS.

Examples of countries that are in Computer Tier 3 are India, China,

Vietnam, Pakistan, and countries of the Middle East, Maghreb, the

former Soviet Union, and the balance of Eastern Europe, i.e., those

Eastern European countries not included in Computer Tier 2. For a list

of countries that fall into Computer Tier 3, see Sec. 776.10. Exports

to Computer Tier 3 countries are authorized under General License G-

DEST for computers less than or equal to 2,000 MTOPS and specially

designed components therefor, exported separately or as part of a

system, and related equipment therefor when exported with these

computers as part of a system. Exports to permitted end-users and end-

uses located in countries in Computer Tier 3 are authorized under

General License G-CTP for computers greater than 2,000 MTOPS but less

than or equal to 7,000 MTOPS and specially designed components

therefor, exported separately or as part of a system, and related

equipment therefor when exported with these computers as part of a

system. General License G-CTP is not authorized for exports and

reexports to Computer Tier 3 for military end-users and end-uses and

nuclear, chemical, biological, or missile end-users and end-uses

defined in part 778. A validated license is required for all consignees

for computers with a CTP greater than 7,000 MTOPS.

As provided in the President's announcement, the U.S. will

``continue to deny computer technology to terrorist countries around

the world''. The countries identified by the Secretary of State as

terrorist supporting are included in Computer Tier 4. They include

Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria. Different

licensing requirements apply to each country in this Computer Country

Tier.

The President's announcement included a decision to continue to

deny computer technology to terrorist countries. This rule adds Sudan

to the list of countries requiring a validated license under ECCN

4A94F, 4D94F, and 4E94F. Another rule will be published in the near

future that will completely revise the Export Administration

Regulations pertaining to Sudan.

Safeguard conditions may be applied at the discretion of the U.S.

Government. A list of safeguard conditions that may appear on validated

licenses are listed in Sec. 776.10(h).

Exporters should be aware of the special recordkeeping requirements

for computers. This rule requires exporters to keep records relating to

each export of a computer with a CTP equal to or greater than 2,000

MTOPS. These records must include the date of shipment, name and

address of the end-user and each intermediate consignee, CTP of each

computer in shipment, volume of computers in shipment, end-use, and

dollar value of shipment.

General Licenses GCT and GFW have been revised to conform with the

revisions of this rule. However, you are informed that the CTP

eligibility levels of General License G-DEST and the new General

License G-CTP far exceed the historic CTP eligibility levels of General

Licenses GCT and GFW and that it may be to your benefit to use G-DEST

or G-CTP instead of GCT and GFW. The authorities of General Licenses

GCT and G-CTP overlap for computers but not for all transactions

involving peripherals exported separately from computer systems. At the

urging of some exporters, this rule maintains General License GCT

because it will remain useful to authorize the export of certain

peripherals when not exported with a computer system eligible for

General License G-CTP.

Specially designed components, exported separately or as part of a

system, and related equipment therefore when exported with computer

systems meeting the eligibility requirements for a general license will

also be eligible under the same general license as the computer.

General licenses are not available for exports of items the exporter

knows will be used to enhance the CTP of a computer beyond the

[[Page 2101]]

technical parameters of the general license.

When evaluating your computer to determine general license

eligibility, use the CTP parameter to the exclusion of other technical

parameters for computers classified under ECCN 4A03A; with the

exception of parameters specified as controlled for Missile Technology

(MT) concerns and 4A03A.e (Equipment performing analog-to-digital or

digital-to-analog conversions exceeding the limits in ECCN 3A01A.a.5).

For example, if you have a graphic workstation with a CTP of 5,000

MTOPS, that includes a graphic accelerator with a 3D vector rate of 10

million vectors/second, destined for a civil end-user and end-use in

India--you may export the graphic workstation to India using General

License G-CTP.

This rule imposes an immediate recordkeeping requirement and alerts

exporters to a future reporting requirement for computer exports. These

requirements are included in part in light of the information sharing

commitments the United States expects to announce in the near future in

connection with the new multilateral regime that will replace the

Coordinating Committee on Export Controls (COCOM) to control the export

of arms and sensitive dual-use goods and technologies. The

recordkeeping requirement takes effect immediately upon filing of the

rule. It is expected that exports of computers above 2,000 MTOPS to

certain destinations will become subject to the reporting requirement

once the initial elements of the new multilateral regime are adopted.

The date on which the reporting requirement is triggered, and the date

on which the first report will be due, will be included in a future

Federal Register notice.

This rule liberalizes the parts and components rule found in

Sec. 776.12 of the EAR. It makes the de minimis exclusions available to

computers that were previously supercomputers.

All the changes to the Commerce Control List (CCL) pertain to

Category 4. This rule revises Foreign Policy controls for computers.

The computer-related FP controls of this rule apply to all destinations

except Japan and to items that require a license depending upon the

destinations specified in the Computer Country Tiers. For example,

Computer Tier 1 does not require a validated license for exports of

computers, so there are no computer-related FP controls for exports of

computers to these countries.

Saving Clause

Shipments of items removed from general license authorizations as a

result of this regulatory action that were on dock for loading, on

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

to a port of export pursuant to actual orders for export before

February 8, 1996 may be exported under the previous general license

provisions up to and including February 22, 1996. Any such items not

actually exported before midnight February 22, 1996, require a

validated export license in accordance with this regulation.

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, as extended by the President's notice of August 15, 1995 (60

Fed. Reg. 42767).

Rulemaking Requirements

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

purposes of Executive Order 12866.

2. This rule involves collections of information subject to the

Paperwork Reduction Act of 1995. These collections have been approved

by the Office of Management and Budget (OMB) under control numbers

0694-0002, 0694-0005, 0694-0006, 0694-0010, 0694-0013, 0694-0015, 0694-

0017, 0694-0021, 0694-0029, and 0694-0064. The rule also contains

information requirements that have been approved by OMB under 0694-

0073. The usage and computer authorization logs are estimated to

average 5 minutes each, monthly reports are estimated at 30 minutes,

and recordkeeping requirements on export transactions are estimated at

2 minutes. Each of the reporting burden estimates include 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 estimates to

the Office of Information and Regulatory Affairs, Office of Management

and Budget, Washington, DC 20503 and to the Bureau of Export

Administration, Director of Administration, Room 3889, Department of

Commerce, Washington, DC 20230. 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.

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 section 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 or foreign affairs function

of the United States. No other law requires that a notice of proposed

rulemaking and an opportunity for public comment be given for this

rule.

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

regulations, this rule is issued in interim 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 February 26, 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.

[[Page 2102]]

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, NW., 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 Theodore Zois, Bureau of

Export Administration Freedom of Information Officer, at the above

address or by calling (202) 482-1525.

List of Subjects

15 CFR Part 770

Administrative practice and procedure, Exports.

15 CFR Parts 771, 772, 773, 774, 775, 776, 786 and 799

Exports, Reporting and recordkeeping requirements.

15 CFR Part 785

Communist countries, Exports.

15 CFR Part 787

Boycotts, Exports, Law enforcement, Penalties, Reporting and

recordkeeping requirements.

Accordingly, parts 770, 771, 772, 773, 774, 775, 776, 785, 786, 787

and 799 of the Export Administration Regulations (15 CFR parts 730-799)

are amended as follows:

1. The authority citation for 15 CFR parts 770, 771, 774, 786, 787

and 799 is revised 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 [(extended by Pub. L. 103-10, 107 Stat. 40 and by

Pub. L. 103-277, 108 Stat. 1407)]; 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.

12735 of November 16, 1990 (55 FR 48587, November 20, 1990), as

continued by Notice of November 12, 1993 (58 FR 60361, November 15,

1993); 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. 12930 of September 29, 1994 (59 FR 50475, October 3, 1994);

E.O. 12924 of August 19, 1994 (59 FR 43437 of August 23, 1994); E.O.

12930 (59 FR 50475 of October 3, 1994); and Notice of August 15,

1995 (60 FR 42767).

2. The authority citation for 15 CFR parts 773, 775, 778, and 785

continues 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 [(extended by Pub. L. 103-10, 107 Stat. 40 and by

Pub. L. 103-277, 108 Stat. 1407)]; 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).

3. The authority citation for 15 CFR part 776 continues 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; sec. 125, Pub. L. 99-64, 99 Stat. 156 (46 U.S.C.

466c); 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. 12867 of

September 30, 1993 (58 FR 51747 of October 4, 1993); 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); and Notice of

August 15, 1995 (60 FR 42767).

PART 770--[AMENDED]

Sec. 770.2 [Amended]

4. In Sec. 770.2 the definition for ``Supercomputer'' is removed.

PART 771--[AMENDED]

Sec. 771.14 [Amended]

5. Section 771.14 is amended by revising the phrase ``No

supercomputers may be exported under this general license.'' to read

``No computers with a CTP greater than 10,000 MTOPS may be exported to

Argentina, Hong Kong, South Korea, Singapore, and Taiwan under this

general license.'', in paragraph (d)(2).

Sec. 771.22 [Amended]

6. Section 771.22 is amended by removing and reserving paragraph

(c)(2)(i).

7. Section 771.26 is amended by revising paragraph (b), to read as

follows:

Sec. 771.26 General license SAFEGUARDS; international safeguards.

* * * * *

(b) Exclusions. No computers with a CTP greater than 7,000 MTOPS to

countries listed in Computer Tiers 3 and 4 (see Sec. 776.10 of this

subchapter for a complete list of the countries within Computer Tiers 3

and 4).

5. Part 771 is amended by adding a new Sec. 771.28 to read as

follows:

Sec. 771.28 General License G-CTP; exports of computers.

(a) Scope. General License G-CTP is established subject to the

provisions of this section authorizing exports of computers and

specially designed components therefor, exported separately or as part

of a system, and related equipment therefor when exported with these

computers as part of a system, for consumption in Computer Tier

countries as provided by this section. When evaluating your computer to

determine General License G-CTP eligibility, use the CTP parameter to

the exclusion of other technical parameters for computers classified

under ECCN 4A03A; with the exception of parameters specified as Missile

Technology (MT) concerns, 4A03A.e (equipment performing analog-to-

digital or digital-to-analog conversions exceeding the limits in ECCN

3A01A.a.5), and graphic accelerators or graphic coprocessors exceeding

a ``3-D vector rate'' of 10,000,000.

(b) Computer Tier 1. (1) Eligible countries. The countries that are

eligible to receive exports under this general license are Australia,

Austria, Belgium, Denmark, Finland, France, Germany, Greece, the Holy

See, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Mexico,

Monaco, Netherlands, New Zealand, Norway, Portugal, San Marino, Spain,

Sweden, Switzerland, Turkey, and the United Kingdom.

(2) Eligible Computers. The computers eligible for General License

G-CTP, are those with a CTP greater than 2,000 MTOPS.

(c) Computer Tier 2. (1) Eligible countries. The countries that are

eligible to receive exports under this general license include all

countries in Country

[[Page 2103]]

Group T 11 (except Mexico), Antigua and Barbuda, Bangladesh,

Benin, Bhutan, Botswana, Brunei, Burkina Faso, Burma (Myanmar),

Burundi, Cambodia, Cameroon, Cape Verde, Central Africa, Chad, Congo,

Cote d'Ivoire, Cyprus, Czech Republic, Dominica, Equatorial Guinea,

Eritrea, Ethiopia, Fiji, Gabon, Gambia (The), Ghana, Grenada, Guinea,

Guinea-Bissau, Hong Kong, Hungary, Indonesia, Kenya, Kiribati, Korea

(Republic of), Laos, Lesotho, Liberia, Madagascar, Malawi, Malaysia,

Maldives, Mali, Malta, Marshall Islands, Mauritius, Micronesia

(Federated States of), Mozambique, Namibia, Nauru, Nepal, Niger,

Nigeria, Palau, Papua New Guinea, Philippines, Poland, Rwanda, St.

Kitts & Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome &

Principe, Senegal, Seychelles, Sierra Leone, Singapore, Slovak

Republic, Slovenia, Solomon Islands, Somalia, South Africa, Sri Lanka,

Swaziland, Taiwan, Tanzania, Togo, Tonga, Thailand, Tuvalu, Uganda,

Western Sahara, Western Samoa, Zaire, Zambia, and Zimbabwe.

\11\ Countries included in Country Group T may be found in

Supplement No. 1 topPart 770 of this subchapter.

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

(2) Eligible computers. The computers eligible for General License

G-CTP, are those having a Composite Theoretical Performance (CTP)

greater than 2000, but equal to or less than 10,000 Millions of

Theoretical Operations Per Second (MTOPS).

(d) Computer Tier 3. (1) Eligible countries. The countries that are

eligible to receive exports under this general license are Afghanistan,

Albania, Algeria, Andorra, Angola, Armenia, Azerbaijan, Bahrain,

Belarus, Bosnia & Herzegovina,12 Bulgaria, China (People's

Republic of), Comoros, Croatia,13 Djibouti, Egypt, Estonia,

Georgia, India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos,

Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav Republic

of), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar,

Romania, Russia, Saudi Arabia, Serbia & Montenegro,14 Tajikistan,

Tunisia, Turkmenistan, Ukraine, United Arab Emirates, Uzbekistan,

Vanuatu, Vietnam, and Yemen.

\12\ Except as provided in 31 CFR part 585.

\13\ Except as provided in 31 CFR part 585.

\14\ Except as provided in 31 CFR part 585.

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

(2) Eligible computers. The computers eligible for General License

G-CTP, are those having a Composite Theoretical Performance (CTP)

greater than 2,000 Millions of Theoretical Operations Per Second

(MTOPS), but less than or equal to 7,000 MTOPS.

(3) Eligible exports. Only exports to permitted end-users and end-

uses located in countries in Computer Tier 3. General License G-CTP is

not authorized for exports and reexports to Computer Tier 3 for

military end-users and end-uses and nuclear, chemical, biological, or

missile end-users and end-uses defined in part 778 of this subchapter.

Exports under this general license may not be made to known military

end-users or to known military end-uses or known proliferation end-uses

or end-users defined in part 778 of this subchapter. Such exports will

continue to require a validated license and will be considered on a

case-by-case basis. Retransfers to military end-users or end-uses and

defined proliferation end-users and end-uses in eligible countries are

strictly prohibited without prior authorization.

(e) Restrictions. (1) Computers eligible for General License G-CTP

may not be accessed either physically or computationally by nationals

of Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria; except that

commercial consignees described in Sec. 776.10(j) of this subchapter

are prohibited only from giving such nationals user-accessible

programmability.

(2) Computers, software and specially designed technology eligible

for General License G-CTP may not be reexported/retransferred without

prior authorization from the Bureau of Export Administration, i.e.,

validated license, permissive reexport, or another general license.

This restriction will be conveyed to the consignee, via the Destination

Control Statement, see Sec. 786.6 of this subchapter.

PART 772--[AMENDED]

Sec. 772.11 [Amended]

8. Section 772.11 is amended by revising the phrase ``amendment

request, if the commodity described on the license is a supercomputer

or if the country'' to ``amendment request, if the country'' in

paragraph (k)(1)(i).

9. Section 772.11 is amended by revising the phrase ``(excluding

the People's Republic of China) and the commodity described on the

license is not a supercomputer.'' to ``(excluding the People's Republic

of China).'' in paragraph (k)(1)(ii).

10. Section 772.11 is amended by revising the phrase ``amendment

request, if the commodity described on the license is a supercomputer

or if the country'' to ``amendment request, if the country'' in

paragraph (l)(1)(i).

11. Section 772.11 is amended by revising the phrase ``(excluding

the People's Republic of China) and the commodity described on the

license is not a supercomputer.'' to ``(excluding the People's Republic

of China).'' in paragraph (l)(1)(ii).

PART 773--[AMENDED]

Supplement No. 1 to part 773, Commodities Excluded from the Special

License Procedure is amended:

a. By removing and reserving paragraph (a); and

b. By revising paragraph (l), to read as follows:

Supplement No. 1 to Part 773--Commodities Excluded From the Special

License Procedures

* * * * *

(l) Commodities subject to nuclear nonproliferation controls (see

Sec. 778.2 of this subchapter).

* * * * *

PART 774--[AMENDED]

13. In Sec. 774.2, paragraphs (a)(1), (k)(1)(i) and (m) are revised

to read as follows:

Sec. 774.2 Permissive reexports.2

\2\ See Sec. 774.9 of this subchapter for effect on foreign

laws.

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

* * * * *

(a) * * *

(1) May be exported directly from the United States to the new

country of destination under General License G-DEST, G-TEMP,\4\ GFW,

GCG, G-NNR, GATS, GUS, BAGGAGE, or G-CTP.

\4\ Commodities legally exported from the United States may be

reexported to a new country(ies) of destination under General

License G-TEMP provided the restrictions described in Sec. 771.22

are met and the commodities and software are returned to the country

from which the reexport occurred.

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

* * * * *

(k) * * *

(1) Except:

(i) Computers with a CTP greater than 10,000 MTOPS to Hong Kong and

South Korea.

* * * * *

(m) Reexports of computers from Japan, provided that the reexport

is authorized in accordance with the licensing requirements of Japan,

computers destined to Computer Tier 3 countries (See part 776.10(f) of

this subchapter) that have a CTP greater than 7,000 MTOPS and computers

destined to Computer Tier 2 countries (See part 776.10(e) of this

subchapter) that have a CTP greater than 10,000 MTOPS.

* * * * *

Sec. 774.3 [Amended]

14. Section 774.3 is amended by revising the phrase ``identified in

Sec. 774.3(c)(1)(i)(A) (1) or (2) or the

[[Page 2104]]

commodity described on the application is a supercomputer; or'' to read

``identified in Sec. 774.3(c)(1)(i)(A) (1) or (2), or'' in paragraph

(b)(3)(i).

15. Section 774.3 is amended by revising the phrase ``listed in

Sec. 774.3(c)(1)(i)(B), except that a supporting document must be

submitted when the commodity described on the application is a

supercomputer.'' to read ``listed in Sec. 774.3(c)(1)(i)(B).'' in

paragraph (b)(3)(ii).

16. Section 774.3 is amended by removing the last sentence in

paragraph (c)(1)(i)(B), which reads ``However, if the commodity

described on the application is a supercomputer, the supporting

document must be submitted with the request for reexport

authorization--not retained in the applicant's records.''

Sec. 775.1 [Amended]

17. Section 775.1 is amended by removing the fourth sentence of

paragraph (a) that reads ``However, if the commodity described on the

application is a supercomputer, the supporting document shall be

submitted to the Office of Export Licensing along with the

application.''

Sec. 775.2 [Amended]

18. Section 775.2 is amended by revising the phrase ``each

individual export license application where the commodity described on

the application is a supercomputer or when the country'' to read ``each

individual export license application where the country'' in paragraph

(a)(1).

19. Section 775.2 is amended by revising the phrase ``(except for

the People's Republic of China) and the commodity described on the

application is not a supercomputer, a Form BXA-629P shall be retained''

to read ``(except for the People's Republic of China), a Form BXA-629P

shall be retained'' in paragraph (a)(2).

Sec. 775.3 [Amended]

20. Section 775.3 is amended by removing the fifth sentence in

paragraph (a)(1), that reads ``If the commodity described on the

application is a supercomputer, the IC must be submitted to the Office

of Export Licensing along with the application--not retained in the

applicant's files.''

Sec. 775.7 [Amended]

21. Section 775.7 is amended by removing paragraph (a)(2)(iii).

Sec. 775.10 [Amended]

22. Section 775.10 is amended by removing and reserving paragraph

(f)(1).

23. Section 775.10 is amended by revising paragraphs (g)(1) (i) and

(ii), (g)(2)(i)(A) and (g)(2)(i)(B), to read as follows:

Sec. 775.10 Special provisions.

* * * * *

(g) * * *

(1) * * *

(i) Submitted to the Bureau of Export Administration, along with

the amendment request, if the country of ultimate destination is the

People's Republic of China or a country in Country Group Q, W, Y, or Z;

or

(ii) Retained in the applicant's files in accordance with the

provisions of this part 775 if the country of ultimate destination is a

country in Country Group S or V (except for the People's Republic of

China).

(2) * * *

(i) * * *

(A) Submitted to the Bureau of Export Administration, along with

the amendment request, if the country of ultimate destination is the

People's Republic of China or a country in Country Group Q, W, Y, or Z;

or

(B) Retained in the applicant's files in accordance with the

provisions of this part 775 if the country of ultimate destination is a

country in Country Group S or V (except for the People's Republic of

China).

* * * * *

PART 776--[AMENDED]

24. Section 776.10 is amended by removing the parenthetical

sentence at the end of paragraph (a)(1) and by adding paragraphs (d)

through (m), to read as follows:

Sec. 776.10 Electronic computers and related equipment.

* * * * *

(d) Computer Tier 1.--(1) Applicable countries. The countries

subject to the requirements of this paragraph (d) include: Australia,

Austria, Belgium, Denmark, Finland, France, Germany, Greece, the Holy

See, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Mexico,

Monaco, Netherlands, New Zealand, Norway, Portugal, San Marino, Spain,

Sweden, Switzerland, Turkey, and the United Kingdom.

(2) Validated license requirement. Except as provided in part

771.2(c) of this subchapter, no validated license is required for

exports of computers to and among countries listed in paragraph (d)(1)

of this section, for consumption in such countries or other disposition

in accordance with the EAR.

(e) Computer Tier 2.--(1) Applicable countries. The countries

subject to the requirements of this paragraph (e) include all countries

in Country Group T 2 (except Mexico), Antigua and Barbuda,

Bangladesh, Benin, Bhutan, Botswana, Brunei, Burkina Faso, Burma

(Myanmar), Burundi, Cambodia, Cameroon, Cape Verde, Central Africa,

Chad, Congo, Cote d'Ivoire, Cyprus, Czech Republic, Dominica,

Equatorial Guinea, Eritrea, Ethiopia, Fiji, Gabon, Gambia (The), Ghana,

Grenada, Guinea, Guinea-Bissau, Hong Kong, Hungary, Indonesia, Kenya,

Kiribati, Korea (Republic of), Laos, Lesotho, Liberia, Madagascar,

Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritius,

Micronesia (Federated States of), Mozambique, Namibia, Nauru, Nepal,

Niger, Nigeria, Palau, Papua New Guinea, Philippines, Poland, Rwanda,

St. Kitts and Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome

and Principe, Senegal, Seychelles, Sierra Leone, Singapore, Slovak

Republic, Slovenia, Solomon Islands, Somalia, South Africa, Sri Lanka,

Swaziland, Taiwan, Tanzania, Togo, Tonga, Thailand, Tuvalu, Uganda,

Western Sahara, Western Samoa, Zaire, Zambia, and Zimbabwe.

\2\. Countries included in Country Group T may be found in

Supplement No. 1 to part 770 of this subchapter.

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

(2) Validated license requirement. A validated license or reexport

authorization is required to export or reexport a computer having a

Composite Theoretical Performance (CTP) greater than 10,000 Millions of

Theoretical Operations Per Second (MTOPS) to a country in Computer Tier

2.

(3) Licensing policy. License applications for the countries listed

in paragraph (e)(1) of this section will generally be approved.

(f) Computer Tier 3.--(1) Applicable countries. The countries

subject to the requirements of this paragraph (f) include Afghanistan,

Albania, Algeria, Andorra, Angola, Armenia, Azerbaijan, Bahrain,

Belarus, Bosnia and Herzegovina,3 Bulgaria, China (People's

Republic of), Comoros, Croatia,4 Djibouti, Egypt, Estonia,

Georgia, India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos,

Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav Republic

of), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar,

Romania, Russia, Saudi Arabia, Serbia and Montenegro,5,

Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab Emirates,

Uzbekistan, Vanuatu, Vietnam, and Yemen.

\3\ Except as provided in 31 CFR part 585.

\4\ Except as provided in 31 CFR part 585.

\5\ Except as provided in 31 CFR part 585.

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

(2) Validated license requirement.

(i) A validated license or reexport authorization is required to

export or

[[Page 2105]]

reexport computers with a CTP greater than 2,000 MTOPS to countries in

Computer Tier 3 to military end-users and end-uses and to nuclear,

chemical, biological, or missile end-users and end-uses defined in part

778 of this subchapter located in Computer Tier 3 countries.

(ii) A validated license or reexport authorization is required to

export or reexport computers with a CTP greater than 7,000 MTOPS to all

end-users and end-uses located in countries in Computer Tier 3.

(3) Licensing policy. License applications for exports and

reexports to military end-users and end-uses and nuclear, chemical,

biological, or missile end-users and end-uses defined in part 778 of

this subchapter located in countries in Computer Tier 3 will be

reviewed on a case-by-case basis using the following criteria:

(i) The presence and activities of countries and end-users of

national security and proliferation concern and the relationships that

exist between the government of the importing country and such

countries and end-users;

(ii) The ultimate consignee's participation in, or support of, any

of the following:

(A) Activities that involve national security concerns; or

(B) Nuclear, chemical, biological or missile proliferation

activities described in part 778 of this subchapter;

(iii) The extent to which the importing country is involved in

nuclear, chemical, biological, or missile proliferation activities

described in part 778 of this subchapter;

(iv) The end-user, whether the end-use is single-purpose or

multiple-purpose.

(4) Licensing policy for other end-uses and end-users. Licenses

applications for exports and reexports to other end-users and end-uses

located in countries in Computer Tier 3 will generally be approved.

(g) Computer Tier 4. (1) Applicable countries. The countries

subject to the requirements of this paragraph (g) include Cuba, Iran,

Iraq, Libya, North Korea, Sudan and Syria.

(2) Validated license requirement. A validated license or reexport

authorization is required to export or reexport to any end-user in

Syria or Sudan computers with a CTP equal to or greater than 6 MTOPS.

For validated license requirements for export or reexport of all

computers, regardless of CTP, to Cuba, Iran, Iraq, Libya, and North

Korea, see the following paragraphs:

(i) Cuba. You will need a license to export or reexport all

computers to Cuba, unless your transaction meets all the applicable

terms and conditions of any BXA General License, see part 771 of this

subchapter. Examples of General Licenses that may be considered for use

to export or reexport computers include G-TEMP (by the news media),

BAGGAGE, GUS, GIFT, SAFEGUARDS, and GLR. Also see the Office of Foreign

Assets Control's Regulations for Cuba (31 CFR part 515).

(ii) Iran. The Office of Foreign Assets Control (OFAC), within the

Department of the Treasury, administers an embargo against Iran under

the authority of the International Emergency Economic Powers Act (see

31 CFR part 560), which prohibits certain transactions with Iran,

including imports, exports, and certain reexports. The export and

reexport controls apply to transfers not only to Iran, but also to the

Government of Iran or any entity owned or controlled by the Government

of Iran. If you are a U.S. person, you should consult with OFAC for

authorization to export or reexport items subject to U.S. jurisdiction

to Iran, or to any entity owned or controlled by, or specially

designated as acting for or on behalf of, the Government of Iran. An

authorization from OFAC constitutes authorization under the EAR, and no

license from BXA is necessary.

(iii) Iraq. The Office of Foreign Assets Control (OFAC), within the

Department of the Treasury, administers an embargo against Iraq under

the authority of the International Emergency Economic Powers Act of

1977 and in conformance with United Nations Security Council

Resolutions. The applicable OFAC regulations, the Iraqi Sanctions

Regulations, are found at 31 CFR part 575. You should consult with OFAC

for authorization to export or reexport items subject to U.S.

jurisdiction to Iraq, or to any entity owned or controlled by, or

specially designated as acting for or on behalf of, the Government of

Iraq. An authorization from OFAC constitutes authorization under the

EAR, and no license from BXA is necessary. You may not use any BXA

general licenses or other BXA authorization to export or reexport to

Iraq, except for General Licenses BAGGAGE and GUS, as recognized in

OFAC's Iraqi Sanctions Regulations (31 CFR 575.507).

(iv) Libya. The Department of the Treasury and the Department of

Commerce maintain comprehensive controls on exports and reexports to

Libya. The Department of the Treasury, Office of Foreign Assets control

(OFAC) maintains comprehensive controls on export and transshipments to

Libya under the Libyan Sanctions Regulations (31 CFR part 550). To

avoid duplicate licensing procedures, OFAC and BXA have allocated

licensing responsibility as follows: OFAC licenses direct exports and

transshipments to Libya; BXA licenses reexports, exports of foreign

manufactured items containing U.S.-origin parts, components or

materials, and exports of foreign-produced direct product of U.S.

technology or software. Issuance of an OFAC license constitutes

authorization under the EAR, and no license from BXA is necessary.

Exports and reexports subject to the EAR that are not subject to the

Libyan Sanctions Regulations continue to require authorization from

BXA.

(v) North Korea. You will need a license to export or reexport all

computers to North Korea, unless your transaction meets all the

applicable terms and conditions of a general license, see part 771 of

this subchapter. Examples of general licenses that may used to export

or reexport computers include General License G-TEMP (by the news

media), BAGGAGE, GUS, GIFT, SAFEGUARDS, and GLR. Also see the Office of

Foreign Assets Control's Regulations for Cuba (31 CFR part 500).

(3) Licensing policy. Applications to export or reexport computers

to terrorist countries will generally be denied. See also part 785 of

this subchapter for greater detail concerning the licensing policy for

most of these countries.

(h) Safeguard conditions. Following interagency review of the

application, the Bureau of Export Administration will instruct the

exporter to submit a safeguard plan signed by the ultimate consignee

and certified by the export control authorities of the importing

country (see paragraph (i) of this section for certification by

government of importing country). The safeguard plan must indicate that

the ultimate consignee agrees to implement those safeguards required by

the Bureau of Export Administration as a condition of issuing the

license. The Bureau of Export Administration will inform exporters

concerning which of the following safeguards will be required as

license conditions:

(1) The applicant will assume responsibility for providing adequate

security against physical diversion of the computer during shipment

(e.g., delivery by either attended or monitored shipment, using the

most secure route possible--this precludes using the services or

facilities of any country listed in paragraph (g) of this section, i.e,

Computer Tier 4 countries).

(2) There will be no reexport or intra-country transfer of the

computer without prior written authorization from the Bureau of Export

Administration.

[[Page 2106]]

(3) The computer systems will be used only for those activities

approved on the license or reexport authorization.

(4) There will be no changes either in the end-users or the end-

uses indicated on the license without prior written authorization by

the Bureau of Export Administration.

(5) Only software that supports the approved end-uses will be

shipped with the computer system.

(6) The end-user will station security personnel at the computer

using facility to ensure that the appropriate security measures are

implemented.

(7) The exporter will station representatives at the computer using

facility, or make such individuals readily available, to guide the

security personnel in the implementation and operation of the security

measures.

(8) The security personnel will undertake the following measures

under the guidance of the exporter's representatives:

(i) The physical security of the computer using facility;

(ii) The establishment of a system to ensure the round-the-clock

supervision of computer security;

(iii) The inspection, if necessary, of any program or software to

be run on the computer system in order to ensure that all usage

conforms to the conditions of the license;

(iv) The suspension, if necessary, of any run in progress and the

inspection of any output generated by the computer to determine whether

the program runs or output conform with the conditions of the license;

(v) The inspection of usage logs daily to ensure conformity with

the conditions of the license and the retention of records of these

logs for at least a year;

(vi) The determination of the acceptability of computer users to

ensure conformity with the conditions of the license;

(vii) The immediate reporting of any security breaches or suspected

security breaches to the government of the importing country and to the

exporter's representatives;

(viii) The execution of the following key tasks:

(A) Establishment of new accounts;

(B) Assignment of passwords;

(C) Random sampling of data;

(D) Generation of daily logs;

(ix) The maintenance of the integrity and security of tapes and

data files containing archived user files, log data, or system backups.

(9) The exporter's representatives will be present when certain key

functions are being carried out (e.g., the establishment of new

accounts, the assignment of passwords, the random sampling of data, the

generating of daily logs, the setting of limits to computer resources

available to users in the development mode, the certification of

programs for conformity to the approved end-uses before they are

allowed to run in the production mode, and the modification to

previously certified production programs).

(10) The security personnel and the exporter's representatives will

provide monthly reports on the usage of the computer system and on the

implementation of the safeguards.

(11) The computer system will be housed in one secure building and

protected against theft and unauthorized entry at all times.

(12) Restricted nationals, i.e., nationals of Computer Tier 4

countries, will not be allowed access to computers:

(i) No physical or computational access to computers may be granted

to restricted nationals without prior written authorization from the

Bureau of Export Administration, except that commercial consignees

described in paragraph (j) of this section are prohibited only from

giving such nationals user-accessible programmability without prior

written authorization;

(ii) No passwords or IDs may be issued to restricted nationals;

(iii) No work may be performed on the computer on behalf of

restricted nationals; and

(iv) No conscious or direct ties may be established to networks

(including their subscribers) operated by restricted nationals.

(13) Physical access to the computer, the operator consoles, and

sensitive storage areas of the computer using facility will be

controlled by the security personnel, under the guidance and monitoring

of the exporter's representatives, and will be limited to the fewest

number of people needed to maintain and run the computer system.

(14) The computer will be equipped with the necessary software to:

permit access to authorized persons only, detect attempts to gain

unauthorized access, set and maintain limits on usage, establish

accountability for usage, and generate logs and other records of usage.

This software will also maintain the integrity of data and program

files, the accounting and audit system, the password or computational

access control system, and the operating system itself.

(i) The operating system will be configured so that all jobs can be

designated and tracked as either program development jobs or as

production jobs.

(ii) In the program development mode, users will be free, following

verification that their application conforms to the agreed end-use, to

create, edit, or modify programs, to use utilities such as editors,

debuggers, or compilers and to verify program operation. Programs in

the development mode will be subject to inspection as provided by

paragraph (h)(8)(iii) of this section.

(iii) In the production mode, users will have access to the full

range of computer resources, but will be prohibited from modifying any

program or using utilities that could modify any program. Before being

allowed to run in the production mode, a program will have to be

certified for conformity to approved end-uses by the security personnel

and the exporter's representatives.

(iv) Programs certified for execution in the production mode will

be protected from unauthorized modification by appropriate software and

physical security measures. Any modifications to previously certified

production programs will be approved by the security personnel under

the guidance and monitoring of the exporter's representatives.

(v) The computer will be provided with accounting and audit

software to ensure that detailed logs are maintained to record all

computer usage. A separate log of security-related events will also be

kept.

(vi) For each job executed in the production mode, the operating

system will record execution characteristics in order to permit

generation of a statistical profile of the program executed.

(15) The source code of the operating system will be accessible

only to the exporter's representatives. Only those individuals will

make changes in this source code.

(16) The security personnel, under the guidance of the exporter's

representatives, will change passwords for individuals frequently and

at unpredictable intervals.

(17) The security personnel, under the guidance of the exporter's

representatives, will have the right to deny passwords to anyone.

Passwords will be denied to anyone whose activity does not conform to

the conditions of the license.

(18) Misuse of passwords by users will result in denial of further

access to the computer.

(19) The exporter's representatives will install a strict password

system and provide guidance on its implementation.

(20) Only the exporter's representatives will be trained in

[[Page 2107]]

making changes in the password system and only they will make such

changes.

(21) No computer will be networked to other computers outside the

computer center without prior authorization from the Bureau of Export

Administration.

(22) Generally, remote terminals will not be allowed outside the

computer using facility without prior authorization by the Bureau of

Export Administration. If remote terminals are specifically authorized

by the license:

(i) The terminals will have physical security equivalent to the

safeguards at the computer using facility;

(ii) The terminals will be constrained to minimal amounts of

computer resources (CPU time, memory access, number of input-output

operations, and other resources);

(iii) The terminals will not be allowed direct computational access

to the computer (i.e., the security personnel, under the guidance of

the exporter's representatives, will validate the password and identity

of the user of any remote terminals before any such user is permitted

to access the computer)--all terminals will be connected to the

computer system by a dedicated access line and a network access

controller.

(23) There will be no direct input to the computer from remote

terminals. Any data originating from outside the computer using

facility, except for direct input from terminals within the same

compound as the computer using facility, will first be processed by a

separate processor or network access controller in order to permit

examination of the data prior to its entry into the computer.

(24) The exporter will perform all maintenance of the computer

system.

(25) Spare parts kept on site will be limited to the minimum

amount. Spares will be kept in an area accessible only to the

exporter's representatives. These representatives will maintain a

strict audit system to account for all spare parts.

(26) No development or production technology on the computer system

will be sent with the computer to the ultimate consignee.

(27) The end-user must immediately report any suspicions or facts

concerning possible violations of the safeguards to the exporter and to

the export control authorities of the importing country.

(28) The exporter must immediately report any information

concerning possible violations of the safeguards to the Bureau of

Export Administration. A violation of the safeguards might constitute

grounds for suspension or termination of the license, preventing the

shipment of unshipped spare parts, or the denial of additional licenses

for spare parts, etc.

(29) The end-user will be audited quarterly by an independent

consultant who has been approved by the export control authorities of

the importing and exporting countries, but is employed at the expense

of the end-user. The consultant will audit the computer usage and the

implementation of the safeguards.

(30) The installation and operation of the computer will be

coordinated and controlled by the following management structure:

(i) Steering Committee. The Steering Committee will comprise

nationals of the importing country who will oversee the management and

operation of the computer.

(ii) Security Staff. The Security Staff will be selected by the

end-user or the government of the importing country to ensure that the

required safeguards are implemented. This staff will be responsible for

conducting an annual audit to evaluate physical security,

administrative procedures, and technical controls.

(iii) Technical Consultative Committee. This committee will

comprise technical experts from the importing country and the exporting

company who will provide guidance in operating and maintaining the

computer. At least one member of the committee will be an employee of

the exporter. The committee will approve all accounts and maintain an

accurate list of all users. In addition, the committee will advise the

Steering Committee and the Security Staff concerning the security

measures needed to ensure compliance with the safeguards required by

the license.

(31) An ultimate consignee who is a multiple-purpose end-user, such

as a university, will establish a peer review group comprising experts

who represent each department or application area authorized for use on

the computer under the conditions of the license. This group shall have

the following responsibilities:

(i) Review all requests for computer usage and make recommendations

concerning the acceptability of all projects and users;

(ii) Submit these recommendations to the Security Staff and

Technical Consultative Committee for review and approval (see paragraph

(h)(28) of this section);

(iii) Establish acceptable computer resource parameters for each

project and review the results to verify their conformity with the

authorized end-uses, restrictions, and parameters; and

(iv) Prepare monthly reports that would include a description of

any runs exceeding the established parameters and submit them to the

security staff.

(32) The end-user will also cooperate with any post-shipment

inquiries or inspections by the U.S. Government or exporting company

officials to verify the disposition and/or use of the computer,

including access to the following:

(i) Usage logs, which should include, at a minimum, computer users,

dates, times of use, and amount of system time used;

(ii) Computer access authorization logs, which should include, at a

minimum, computer users, project names, and purpose of projects.

(33) The end-user will also cooperate with the U.S. Government or

exporting company officials concerning the physical inspection of the

computer using facility, on short notice, at least once a year and will

provide access to all data relevant to computer usage. This inspection

will include:

(i) Analyzing any programs or software run on the computer to

ensure that all usage complies with the authorized end-uses on the

license. This will be done by examining user files (e.g., source codes,

machine codes, input/output data) that are either on-line at the time

of the inspection or that have been previously sampled and securely

stored.

(ii) Checking current and archived usage logs for conformity with

the authorized end-uses and the restrictions imposed by the license.

(iii) Verifying the acceptability of all computer users in

conformity with the authorized end-uses and the restrictions imposed by

the license.

(34) Usage requests that exceed the quantity of monthly CPU time

specified on the license shall not be approved without prior written

authorization from the Bureau of Export Administration. Requests for

computational access approval shall include a description of the

intended purpose for which access is sought.

(35) (i) In addition to, or in lieu of, the normal access by on-

site exporting company staff or its representatives, the company, when

required by the exporting government, will provide a separate remote

electronic access capability to the computer for the purposes of

maintenance, troubleshooting, inspection of work in progress, and

auditing of all work performed on the computer. On-site and central

exporting company hardware and software maintenance facilities, at the

direction of the exporting company staff or its representatives, to

gather information such as:

[[Page 2108]]

(A) Statistical profiles of production jobs;

(B) Logs of jobs run in both production and development mode;

(C) Logs and reports of security related events.

(ii) If such method is used, the remote maintenance facilities will

be considered part of the operating system and protected accordingly,

and will be available only to exporting company operational staff or

its representatives. The maintenance hardware and software and

associated communication links will be protected to ensure the

integrity and authenticity of data and programs and to prevent

tampering with hardware.

(36) The export company staff or its representatives will be

required to provide personnel for a specified period of time at the

computer facility for management, operation, and safeguarding of the

computer.

(i) Certification by export control authorities of importing

country.

(1) The following importing government certification is required by

paragraph (h) of this section:

This is to certify that (name of ultimate consignee) has

declared to (name of appropriate foreign government agency) that the

computer (model name) will be used only for the purposes specified

in the end-use statement and that the ultimate consignee will

establish and adhere to all the safeguard conditions and perform all

other undertakings described in the end-use statement.

The (name of appropriate foreign government agency) will advise

the United States Government of any evidence that might reasonably

indicate the existence of circumstances (e.g., transfer of

ownership) that could affect the objectives of the security

safeguard conditions.

(2) Other importing government assurances regarding prohibited

activities may also be required on a case-by-case basis.

(j) Commercial consignees. Exports or reexports of computers that

are solely dedicated to the following non-scientific and non-technical

commercial business uses will usually be eligible for a reduced set of

security safeguard conditions:

(1) Financial services (e.g., banking, securities and commodity

exchanges);

(2) Insurance;

(3) Reservation systems;

(4) Point-of-sales systems;

(5) Mailing list maintenance for marketing purposes;

(6) Inventory control for retail/wholesale distribution.

(k) Special recordkeeping requirements. Exporters must keep

accurate records of each export of a computer with a CTP equal to or

greater than 2,000 MTOPS. These records will be made available to the

U.S. Government upon request. The records will include the following

information:

(1) Date of shipment;

(2) Name and address of the end-user and each intermediate

consignee;

(3) CTP of each computer in shipment;

(4) Volume of computers in shipment;

(5) Dollar value of shipment; and

(6) End-Use.

(l) Reporting requirements. Exporters are hereby notified that

consistent with the commitments reached with the new multilateral

regime that will replace the Coordinating Committee (COCOM), exporters

will be required to submit to BXA consolidated reports on exports to

certain destinations every six months of computers with a CTP equal to

or greater than 2,000 MTOPS. These reports will include for each such

export all the information required to be kept pursuant to paragraph

(k) of this section. Exports of computers above 2,000 MTOPS to certain

destinations will be subject to the reporting requirement once the

initial elements of the new multilateral regime are adopted, and the

first report will be due thereafter.

(m) General license availability. When evaluating your computer to

determine General License eligibility, use the CTP parameter to the

exclusion of other technical parameters for computers classified under

ECCN 4A03A; with the exception of parameters specified as Missile

Technology (MT) concerns, 4A03A.e (equipment performing analog-to-

digital conversions exceeding the limits in ECCN 3A01A.a.5.a), and

graphic accelerators or graphic coprocessors exceeding a ``3-D vector

rate'' of 10,000,000.

(1) General License G-DEST. General License G-DEST may be used for

exports of computers and specially designed components therefor,

exported separately or as part of a system, and related equipment

therefor when exported with these computers as part of a system, as

described in this section.

(i) Computer Tiers 1, 2 and 3. Exports of computers with a CTP

equal to or less 2,000 MTOPS and specially designed components

therefor, exported separately or as part of a system, and related

equipment therefor when exported with these computers as part of a

system, are eligible for General License G-DEST to countries in the

respective Computer Tiers.

(ii) Sudan and Syria. Exports of computers with a CTP less than 6

MTOPS and specially designed components therefor, exported separately

or as part of a system, and related equipment therefor when exported

with these computers as part of a system are eligible for General

License G-DEST to Sudan and Syria.

(2) General License G-CTP.

(i) Computer Tier 1. General License G-CTP is available for exports

of computers with a CTP greater than 2,000 MTOPS and specially designed

components therefor, exported separately or as part of a system, and

related equipment when exported with these computers as part of a

system therefor, to countries in Computer Tier 1.

(ii) Computer Tier 2. General License G-CTP is available for

exports of computers with a CTP greater than 2,000 MTOPS, but equal to

or less than 10,000 MTOPS and specially designed components therefor,

exported separately or as part of a system, and related equipment when

exported with these computers as part of a system therefor, to

countries in Computer Tier 2.

(iii) Computer Tier 3. General License G-CTP is available for

exports of computers with a CTP greater than 2,000 MTOPS, but less than

or equal to 7,000 MTOPS and specially designed components therefor,

exported separately or as part of a system, and related equipment when

exported with these computers as part of a system to permitted end-

users and end-uses located in countries in Computer Tier 3. General

License G-CTP is not authorized for exports or reexports to countries

in Computer Tier 3 for military end-users and end-uses and nuclear,

chemical, biological, or missile end-users and end-uses defined in part

778. (See Sec. 771.28 of this subchapter for more details of General

License G-CTP.)

(3) Other general licenses. Computers are eligible for many other

general licenses found in part 771 of this subchapter. Examples of

general licenses you may consider for exports of computers are: GLV,

BAGGAGE, GIT, GUS, GCG, GTF-U.S., GLR, GIFT, GLX, G-TEMP, and

SAFEGUARDS.

Sec. 776.11 [Removed and reserved]

25. Section 776.11 is removed and reserved.

26. Section 776.12 is amended by revising paragraph (b)

introductory text to read as follows:

Sec. 776.12 Parts, components, and materials incorporated abroad into

foreign-made products.

* * * * *

(b) Determining approval requirements. Prior written approval of

the Department of Commerce is required for the export from a foreign

country of

[[Page 2109]]

a foreign-made computer with a performance level exceeding 7,000 MTOPS

containing U.S.-origin controlled semiconductors (other than memory

circuits) classified under ECCN 3A01A or high speed interconnect

devices (ECCN 4A03A.d) to Computer Tier 3 and 4 countries, without

exception. Prior written approval also is required for any other

foreign-made product incorporating U.S. origin parts, components, or

materials, unless:

* * * * *

PART 785--[AMENDED]

Sec. 785.4 [Amended]

27. Section 785.4 is amended by revising the phrase ``Fluorocarbon

compounds for cooling fluids for radar and supercomputers described in

ECCN 1C94'' to read ``fluorocarbon compounds for cooling fluids for

radar and computers described in ECCN 1C94'' in the first and last

sentences in paragraph (d)(1)(xxxiii).

PART 786--[AMENDED]

28. Section 786.6 is amended by revising (a)(2) and (c)(2) to read

as follows:

Sec. 786.6 Destination control statements.

(a) * * *

(2) General License GLV, GTF-US, G-TEMP, GLR, GFW, GNSG, GCT, or G-

CTP.

* * * * *

(c) * * *

(2) General license shipments. For a shipment under any general

license, except General License GCT, GNSG, and G-CTP, any of the three

destination control statements in paragraph (d) of this section may be

used. For shipments under General License GCT, GNSG, and G-CTP,

exporters must use Statement No. 1 or 2.

* * * * *

PART 787--[AMENDED]

Sec. 787.13 [Amended]

29. Section 787.13 is amended by removing the reference ``776.11''

from the second sentence of paragraph (c).

PART 799--[AMENDED]

Supplement No. 1 to Sec. 799.1 [Amended]

30. In Category 4, the following amendments are made:

a. The Requirements sections of the following ECCNs are revised:

4A01A, 4A02A, 4A94F, 4D01A, 4D02A, 4D94F, 4E01A, and 4E94F; and

b. ECCN 4A03A, is revised to read as follows:

4A01A Electronic computers and related equipment, as follows, and

``assemblies'' and specially designed components therefor.

Requirements

Validated License Required: QSTVWYZ, (see Notes).

Unit: Computers and peripherals in number; parts and accessories in

$ value.

Reason For Control: NS, MT, NP, FP (see Notes).

GLV: $5000 for 4A01.a only; $0 for 4A01.b.

GCT: Yes, except MT and except Hong Kong and South Korea for

computers with a CTP greater than 10,000 MTOPS. (See Notes).

GCTP: No.

GFW: No.

Notes: 1. MT controls apply to 4A01.a.

2. FP and NP controls apply to all destinations, except:

a. Countries listed in Sec. 776.10(d) of this subchapter

(Computer Tier 1),

b. Countries listed in Sec. 776.10(e) of this subchapter

(Computer Tier 2), for computers with a CTP equal to or less than

10,000 MTOPS; and

c. Countries listed in Sec. 776.10(f) of this subchapter

(Computer Tier 3), for computers with a CTP equal to or less than

2,000 MTOPS to all end-users/uses or a CTP equal to or less than

7,000 MTOPS to end-users/uses that are not military end-users and

end-uses and are not nuclear, chemical, biological, or missile end-

users and end-uses defined in part 778 of this subchapter.

* * * * *

4A02A ``Hybrid computers'', as follows, and ``assemblies'' and

specially designed components therefor.

Requirements

Validated License Required: QSTVWYZ, (see Notes).

Unit: Computers and peripherals in number; parts and accessories in

$ value.

Reason For Control: NS, MT, NP, FP (see Notes).

GLV: $5000.

GCT: Yes, except MT and except Hong Kong and South Korea for

computers with a CTP greater than 10,000 MTOPS. (see Notes).

GCTP: No.

GFW: No.

Notes: 1. MT controls apply to hybrid computers combined with

specially designed ``software'', for modeling, simulation, or design

integration of complete rocket systems and unmanned air vehicle

systems described in Sec. 787.7 of this subchapter.

2. FP and NP controls apply to all destinations, except:

a. Countries listed in Sec. 776.10(d) of this subchapter

(Computer Tier 1),

b. Countries listed in Sec. 776.10(e) of this subchapter

(Computer Tier 2), for computers with a CTP equal to or less than

10,000 MTOPS; and

c. Countries listed in Sec. 776.10(f) of this subchapter

(Computer Tier 3), for computers with a CTP equal to or less than

2,000 MTOPS to all end-users/uses or a CTP equal to or less than

7,000 MTOPS to end-users/uses that are not military end-users and

end-uses and are not nuclear, chemical, biological, or missile end-

users and end-uses defined in part 778 of this subchapter.

* * * * *

4A03A ``Digital computers'', ``assemblies'', and related

equipment therefor, as described in this entry, and specially

designed components therefor.

Requirements

Validated License Required: QSTVWYZ, (see Note 5).

Unit: Computers and peripherals in number; parts and accessories in

Sec. value.

Reason for Control: NS, MT, NP, FP (see Notes).

GLV: $5,000.

GCT: Yes, except MT and FP, and except Hong Kong and South Korea

for computers with a CTP greater than 10,000 MTOPS. (See Notes).

GCTP: Yes, and specially designed components therefor, exported

separately or as part of a system, and related equipment therefor when

exported with these computers as part of a system. (See N.B.)

GFW: Yes, except MT and FP (see Notes), for computers with a CTP

not exceeding 1,000 MTOPS (500 MTOPS for eligible countries listed in

Supp. 4 to part 778 of this subchapter) and specially designed

components therefor, exported separately or as part of a system, and

related equipment therefor when exported with these computers as part

of a system.

N.B. 1: General License GFW is not available for the export of

commodities that the exporter knows will be used to:

a. Enhance the CTP to 2000 MTOPS or greater; or

b. Enhance the performance capability of a computer with a CTP

equal to or greater than 2000 MTOPS.

N.B. 2: To determine whether General License GFW may be used to

export related equipment controlled under another entry in the CCL,

consult the GFW paragraph under the Requirements heading of the

appropriate entry.

N.B. 3: General License G-CTP is not available for the export of

items that the exporter knows will be used to enhance the CTP beyond

the limits of General License G-CTP.

N.B. 4: When evaluating your computer to determine general license

eligibility, use the CTP parameter to the exclusion of other technical

parameters for computers classified under ECCN

[[Page 2110]]

4A03; with the exception of parameters specified as Missile Technology

(MT) concerns, 4A03A.e (Equipment performing analog-to-digital

conversions exceeding the limits in ECCN 3A01.a.5.a), and graphics

accelerators or graphics coprocessors exceeding a ``3-D vector rate''

of 10,000,000.

Notes: 1. MT controls apply to digital computers used as

ancillary equipment for test facilities and equipment that are

controlled by 9B05 or 9B06.

2. FP controls apply to computers for computerized fingerprint

equipment to all destinations except Australia, Japan, New Zealand

and members of NATO.

3. FP and NP controls apply to all destinations, except:

a. Countries listed in Sec. 776.10(d) of this subchapter

(Computer Tier 1),

b. Countries listed in Sec. 776.10(e) of this subchapter

(Computer Tier 2), for computers with a CTP equal to or less than

10,000 MTOPS; and

c. Countries listed in Sec. 776.10(f) of this subchapter

(Computer Tier 3), for computers with a CTP equal to or less than

2,000 MTOPS to all end-users/uses or a CTP equal to or less than

7,000 MTOPS to end-users/uses that are not military end-users and

end-uses and are not nuclear, chemical, biological, or missile end-

users and end-uses defined in part 778 of this subchapter.

4. FP controls apply to Iran, Sudan and Syria for computers

controlled by 4A03A or 4A94F (i.e., computers with a CTP of 6 MTOPS

or greater). See Sec. 785.4(d)(1) of this subchapter.

5. Exceptions to the validated license requirement may be found

in Sec. 776.10 of this subchapter.

List of Items Controlled

Note 1: 4A03 includes vector processors, array processors,

digital signal processors, logic processors, and equipment for

``image enhancement'' or signal processing''.

Note 2: The control status of the ``digital computers'' or

related equipment described in 4A03 is governed by the control

status of other equipment or systems provided:

a. The ``digital computers'' or related equipment are essential

for the operation of the other equipment or systems;

b. The ``digital computers'' or related equipment are not a

``principal element'' of the other equipment or systems; and

N.B. 1: The control status of ``signal processing'' or ``image

enhancement'' equipment specially designed for other equipment with

functions limited to those required for the other equipment is

determined by the control status of the other equipment even if it

exceeds the ``principal element'' criterion.

N.B. 2: For the control status of ``digital computers'' or related

equipment for telecommunications equipment, see the telecommunications

entries in Category 5.

c. The technology for the ``digital computers'' and related

equipment is governed by 4E.

``Digital computers'', ``assemblies'', and related equipment

therefor, as follows, and specially designed components therefor:

a. Designed or modified for ``fault tolerance'';

Note: For the purposes of 4A03.a, ``digital computers'' and

related equipment are not considered to be designed or modified for

``fault tolerance'', if they use:

1. Error detection or correction algorithms in ``main storage'';

2. The interconnection of two ``digital computers'' so that, if

the active central processing unit fails, an idling but mirroring

central processing unit can continue the system's functioning;

3. The interconnection of two central processing units by data

channels or by use of shared storage to permit one central

processing unit to perform other work until the second central

processing unit fails, at which time the first central processing

unit takes over in order to continue the system's functioning; or

4. The synchronization of two central processing units by

``software'' so that one central processing unit recognizes when the

other central processing unit fails and recovers tasks from the

failing unit.

b. ``Digital computers'' having a ``composite theoretical

performance'' (``CTP'') exceeding 260 million theoretical operations

per second (MTOPS), except as described in Sec. 776.10 of this

subchapter;

c. ``Assemblies'' specially designed or modified to be capable of

enhancing performance by aggregation of ``computing elements''

(``CEs'') so that the ``CTP'' of the aggregation exceeds the limit in

4A03.b.

Note 1: 4A03.c applies only to ``assemblies'' and programmable

interconnections not exceeding the limits in 4A03.b, when shipped as

unintegrated ``assemblies''. It does not apply to ``assemblies''

inherently limited by nature of their design for use as related

equipment controlled by 4A03.d to 4A03.f.

Note 2: 4A03.c does not control ``assemblies'' specially

designed for a product or family of products whose maximum

configuration does not exceed the limits of 4A03.b.

d. Graphics accelerators or graphics coprocessors exceeding a ``3-D

Vector Rate'' of 1,600,000;

e. Equipment performing analog-to-digital conversions exceeding the

limits in 3A01.a.5.a;

f. Equipment containing ``terminal interface equipment'' exceeding

the limits in 5A02.c;

Note: For the purposes of 4A03.f, ``terminal interface

equipment'' includes ``local area network'' interfaces, modems and

other communications interfaces. ``Local area network'' interfaces

are evaluated as ``network access controllers''.

g. Equipment, specially designed to provide for the external

interconnection of ``digital computers'' or associated equipment, that

allows communications at data rates exceeding 80 Mbytes/s.

Note: 4A03.g does not control internal interconnection equipment

(e.g., backplanes, buses) or passive interconnection equipment.

4A94F Computers, ``assemblies'' and related equipment not

controlled by 4A01, 4A02, or 4A03, and specially designed components

therefor.

Requirements:

Validated License Required: SZ, Iran, Sudan, Syria (see Note).

Unit: Computers and peripherals in number; parts and accessories in

$ value.

Reason For Control: FP.

GLV: $0.

GCT: No.

GFW: No.

Note: Exceptions to the validated license requirement may be

found in Sec. 776.10 of this subchapter.

* * * * *

4D01A ``Software'' specially designed or modified for the

``development'', ``production'' or ``use'' of equipment controlled by

4A01, 4A02, 4A03, or 4A04, or ``software'' controlled by 4D01, 4D02, or

4D03.

Requirements:

Validated License Required: QSTVWYZ.

Unit: $ value.

Reason For Control: NS, MT, FP, NP (see Notes).

GTDR: Yes, except MT, FP, and software for computers requiring a

validated license, see Notes.

GTDU: No.

Notes: 1. MT controls apply to ``software'' specially designed

or modified for the ``development,'' ``production'' or ``use'' of

equipment controlled for MT by 4A01, 4A02, and 4A03.

2. FP and NP controls apply to all destinations, except:

a. Countries listed in Sec. 776.10(d) of this subchapter

(Computer Tier 1),

b. Countries listed in Sec. 776.10(e) of this subchapter

(Computer Tier 2), for ``software'' for computers with a CTP equal

to or less than 10,000 MTOPS; and

c. Countries listed in Sec. 776.10(f) of this subchapter

(Computer Tier 3), for computers with a CTP equal to or less than

2,000 MTOPS to all end-users/uses or a CTP equal to or less than

7,000 MTOPS to end-users/uses that are not military end-users and

end-uses and are not nuclear, chemical, biological, and missile end-

users and end-uses defined in part 778 of this subchapter.

3. FP controls apply to all destinations except Australia,

Japan, New Zealand and members of NATO, for ``software'' specially

designed or modified for the ``development'', ``production'', or

``use'' of computers for computerized fingerprint equipment.

[[Page 2111]]

4D02A ``Software'' specially designed or modified to support

``technology'' controlled by 4E01 or 4E02.

Requirements

Validated License Required: QSTVWYZ.

Unit: $ value.

Reason For Control: NS, MT, NP, FP (see Notes).

GTDR: Yes, except MT, FP, and for ``software'' for computers that

require a validated license, see Notes.

GTDU: No.

Notes: 1. MT controls apply to ``software'' specially designed

or modified to support technology for the ``development,''

``production'' or ``use'' of equipment controlled for MT by 4A01,

4A02 and 4A03.

2. FP and NP controls apply to all destinations, except:

a. Countries listed in Sec. 776.10(d) of this subchapter

(Computer Tier 1),

b. Countries listed in Sec. 776.10(e) of this subchapter

(Computer Tier 2), for software for computers with a CTP equal to

or less than 10,000 MTOPS; and

c. Countries listed in Sec. 776.10(f) of this subchapter

(Computer Tier 3), for computers with a CTP equal to or less than

2,000 MTOPS to all end-users/uses or a CTP equal to or less than

7,000 MTOPS to end-users/uses that are not military end-users and

end-uses and are not nuclear, chemical, biological, and missile end-

users and end-uses defined in part 778 of this subchapter.

3. FP controls apply to all destinations except Australia,

Japan, New Zealand and members of NATO, for ``software'' specially

designed or modified for the ``development'', ``production'', or

``use'' of computers for computerized fingerprint equipment.

4D94F ``Software'' specially designed for the ``development'',

``production'', or ``use'' of ``digital computers'', ``assemblies'' and

related equipment therefor controlled by 4A94F.

Requirements

Validated License Required: SZ, Iran, Sudan, Syria.

Unit: $ value.

Reason For Control: FP.

GTDR: No.

GTDU: No.

4E01A Technology, according the General Technology Note, for the

``development'', ``production'' or ``use'' of equipment controlled by

4A01, 4A02, 4A03, or 4A04, or ``software'' controlled by 4D01, 4D02, or

4D03.

Requirements

Validated License Required: QSTVWYZ.

Reason for Control: NS, MT, NP, FP (see Notes).

GTDR: Yes, except MT, FP, and ``technology'' required for computers

with a CTP greater than 2,000 MTOPs.

GTDU: No.

Notes: 1. MT controls apply to certain items controlled by 4A01,

4A02, 4A03, 4D01, or 4D02. See Reason for Control paragraphs in

these entries to determine which items are subject to MT controls.

2. FP and NP controls apply to all destinations.

3. FP controls apply, for all destinations except Australia,

Japan, New Zealand, and members of NATO, to technology for the

``development'', ``production'', or ``use'' of computers controlled

by 4A03 for computerized fingerprint equipment.

4E94F Technology for the ``development'', ``production'', or

``use'' of ``digital computers'', ``assemblies'' and related equipment

therefor controlled by 4A94F.

Requirements

Validated License Required: SZ, Iran, Sudan, and Syria.

Reason for Control: FP.

GTDR: No.

GTDU: No.

Dated: January 4, 1996.

Sue E. Eckert,

Assistant Secretary for Export Administration.

[FR Doc. 96-293 Filed 1-22-96; 2:52 pm]

BILLING CODE 3510-DT-P