Revisions to the Export Administration Regulations: Addition of the Republic of South Korea to Australia Group (AG), Clarification to the Sample Shipments Exemption in ECCN 1C350, and Correction to the Commerce Country Chart

SUMMARY: As of October 1996, the Republic of Korea (South Korea) is a

member of the Australia Group (AG). Therefore, South Korea is to be

treated as an AG member under U.S. regulations. This includes exemption

from certain requirements under the Export Administration Regulations

(EAR) for items controlled for Chemical/Biological weapons

proliferation (CB) reasons.

In addition, this rule makes a clarification to the exemption for

sample shipments in ECCN 1C350 and corrections to Supplement Number 1

to part 738, the Commerce Country Chart, CB Column 3 (Chemical and

Biological Weapons), by removing the license requirement symbol ``X''

from Romania and South Africa, as this symbol was inadvertently

included in previous regulations, and removing all the license

requirement symbols ``X'' from the Iraq row and replacing them with the

phrase that is common to all embargoed destinations, ``See part 746 of

the EAR to determine whether a license is required in order to export

or reexport to this destination''.

This action will lessen the administrative burden on U.S.

exporters, by decreasing license application requirements for exports

of items controlled for CB reasons to South Korea, Romania, and South

Africa.

DATE: This rule is effective February 12, 1997.

FOR FURTHER INFORMATION CONTACT: For questions of a general nature,

call Sharron Cook, Regulatory Policy Division, at (202)482-2440.

For questions of a technical nature, contact Jim Seevaratnam,

Chemical and Biological Controls Division, at (202)482-3343 or at

facsimile (202) 482-0751.

For questions on Chemical and Biological Warfare policy controls,

contact Patricia Sefcik, Chemical and Biological Controls Division at

(202) 482-0707 or at facsimile (202) 482-0751.

SUPPLEMENTARY INFORMATION:

Background

As a result of the Republic of Korea (South Korea) being admitted

to the Australia Group (AG), this rule adds South Korea to Supplement

Number 1 to part 740, Country Group A, Column A:3 (Australia Group) and

removes the license requirement symbol ``X'' from South Korea in

Supplement Number 1 to part 738, the Commerce Country Chart, CB Column

2 (Chemical and Biological Weapons).

In addition, the license requirement symbol ``X'' is removed from

Romania and South Africa, in Supplement Number 1 to part 738, the

Commerce Country Chart, CB Column 3 (Chemical and Biological Weapons),

as this symbol was inadvertently included in previous regulations.

Additional corrections are made to Supplement Number 1 to part 738,

the Commerce Country Chart, by removing all the license requirement

symbols ``X'' from the Iraq row and replacing them with the phrase,

``See part 746 of the EAR to determine whether a license is required in

order to export or reexport to this destination'', and removing the

footnote 1 reference from Bosnia & Herzegovina, Croatia, and Serbia &

Montenegro.

In section 770.2(k) of the EAR, interpretation 11, ``precursor

chemicals'', has been revised by adding South Korea to the countries

that are exempt from the ECCN 1C350 license requirements for the

chemicals listed. In addition, Poland, Romania, and Slovak Republic

have been added to this paragraph, as they were inadvertently omitted

in previous regulations.

In addition, the definition for ``Australia Group'', in part 772,

has been revised to include South Korea.

Lastly, this rule makes a clarification to the exemption for sample

shipments found in License Requirement Note 1 of ECCN 1C350. The

clarification is listed in paragraph (c) of the note and states, ``A

consignee that receives a sample shipment under this exclusion may not

resell, transfer, or reexport the sample shipment but may use the

sample shipment for any other purpose unrelated to chemical weapons.

However, a sample shipment received under this exclusion remains

subject to all General Prohibitions including the end-use restriction

described in Sec. 744.4 of the EAR.'' This end-use restriction was

added to make clear to exporters that when BXA deleted ``for research

or evaluation'' from the sample shipment exclusion (60 F.R. 54030,

October 19, 1995), BXA did not intend to allow the resell, transfer or

reexport of the sample shipments by consignees.

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

FR 42767) and August 14, 1996 (61 FR 42527).

Rulemaking Requirements

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

purposes of Executive Order 12866.

2. This rule involves collections of information subject to the

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

collections have been approved by the Office of Management and Budget

under control numbers 0694-0086 and 0694-0088. The effect of this rule

will decrease license application requirements, thus reduce the

paperwork burden on the public. Notwithstanding any other provision of

law, no person is required to respond 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. 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 (see 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 rule. Because a notice

of proposed rulemaking and an opportunity for public comment are not

required to be given for this rule by 5 U.S.C 553, or by any other law,

the analytical requirements of the Regulatory Flexibility Act, 5 U.S.C.

601 et seq., are inapplicable.

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

is no formal

[[Page 6683]]

comment period, public comments on this regulation are welcome on a

continuing basis. Comments should be submitted to Sharron Cook,

Regulatory Policy Division, Office of Exporter Services, Bureau of

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

Washington, DC 20044.

List of Subjects

15 CFR Parts 738, 770, 772, and 774

Exports, Foreign trade.

15 CFR Part 740

Administrative practice and procedure, Exports, Foreign trade,

Reporting and recordkeeping requirements.

Accordingly, parts 738, 740, 770, 772 and 774 of the Export

Administration Regulations (15 CFR parts 730-799A) are amended as

follows:

1. The authority citation for 15 CFR parts 738 and 774 continue 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, 3 C.F.R. 1995 Comp. 501 (1996); Notice of

August 14, 1996 (61 FR 42527, August 15, 1996).

2. The authority citation for 15 CFR parts 740, 770 and 772

continue 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, 3 C.F.R. 1995 Comp. 501 (1996); Notice of August 14, 1996

(61 FR 42527, August 15, 1996).

PART 738--[AMENDED]

3. Supplement Number 1 to Part 738, Commerce Country Chart, is

revised to read as follows:

Commerce Country Chart

Reason for Control

Chemical & biological Nuclear non- National security Missile Regional Crime control Anti- terrorism

weapons proliferation -------------------- tech stability -------------------------------------------------

Countries -------------------------------------------------- ------------------------------

CB CB CB NP NP NS NS MT RS RS CC CC CC AT AT

column column column column column column column column column column column column column column column

1 2 3 1 2 1 2 1 1 2 1 2 3 1 2

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

Afghanistan............................... X X X X ........ X X X X X X ........ X ........ ........

Albania................................... X X ........ X ........ X X X X X X X ........ ........ ........

Algeria................................... X X ........ X X X X X X X X ........ X ........ ........

Andorra................................... X X ........ X X X X X X X X ........ X ........ ........

Angola \1\................................ X X ........ X X X X X X X X ........ X ........ ........

Antigua & Barbuda......................... X X ........ X ........ X X X X X X ........ X ........ ........

Argentina................................. X ........ ........ ........ ........ X X X X X X ........ X ........ ........

Armenia................................... X X X X ........ X X X X X X X ........ ........ ........

Australia................................. X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Austria................................... X ........ ........ ........ ........ X ........ X X X X ........ X ........ ........

Azerbaijan................................ X X X X ........ X X X X X X X ........ ........ ........

Bahamas, The.............................. X X ........ X ........ X X X X X X ........ X ........ ........

Bahrain................................... X X X X ........ X X X X X X ........ X ........ ........

Bangladesh................................ X X ........ X ........ X X X X X X ........ X ........ ........

Barbados.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Belarus................................... X X X X ........ X X X X X X X ........ ........ ........

Belgium................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Belize.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Benin..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Bhutan.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Bolivia................................... X X ........ X ........ X X X X X X ........ X ........ ........

Bosnia & Herzegovina...................... X X ........ X ........ X X X X X X ........ X ........ ........

Botswana.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Brazil.................................... X X ........ ........ ........ X X X X X X ........ X ........ ........

Brunei.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Bulgaria.................................. X X X ........ ........ X X X X X X X ........ ........ ........

Burkina Faso.............................. X X ........ X ........ X X X X X X ........ X ........ ........

Burma..................................... X X X X ........ X X X X X X ........ X ........ ........

Burundi................................... X X ........ X ........ X X X X X X ........ X ........ ........

Cambodia.................................. X X ........ X ........ X X X X X X X ........ ........ ........

Cameroon.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Canada.................................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........

Cape Verde................................ X X ........ X ........ X X X X X X ........ X ........ ........

Central African Republic.................. X X ........ X ........ X X X X X X ........ X ........ ........

Chad...................................... X X ........ X ........ X X X X X X ........ X ........ ........

Chile..................................... X X ........ X ........ X X X X X X ........ X ........ ........

China..................................... X X X X ........ X X X X X X ........ X ........ ........

Colombia.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Comoros................................... X X ........ X X X X X X X X ........ X ........ ........

Congo..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Costa Rica................................ X X ........ X ........ X X X X X X ........ X ........ ........

Cote d'Ivoire............................. X X ........ X ........ X X X X X X ........ X ........ ........

Croatia................................... X X ........ X ........ X X X X X X ........ X ........ ........

Cuba......................................

(14)See part 746 of the EAR to determine

whether a license is required in order to

export or reexport to this destination.

Cyprus.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Czech Republic............................ X ........ ........ ........ ........ X X X X X X ........ X ........ ........

Denmark................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Djibouti.................................. X X ........ X X X X X X X X ........ X ........ ........

Dominica.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Dominican Republic........................ X X ........ X ........ X X X X X X ........ X ........ ........

Ecuador................................... X X ........ X ........ X X X X X X ........ X ........ ........

Egypt..................................... X X X X ........ X X X X X X ........ X ........ ........

[[Page 6684]]

El Salvador............................... X X ........ X ........ X X X X X X ........ X ........ ........

Equatorial Guinea......................... X X ........ X ........ X X X X X X ........ X ........ ........

Eritrea................................... X X ........ X ........ X X X X X X ........ X ........ ........

Estonia................................... X X ........ X ........ X X X X X X X ........ ........ ........

Ethiopia.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Fiji...................................... X X ........ X ........ X X X X X X ........ X ........ ........

Finland................................... X ........ ........ ........ ........ X ........ X X X X ........ X ........ ........

France.................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Gabon..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Gambia, The............................... X X ........ X ........ X X X X X X ........ X ........ ........

Georgia................................... X X X X ........ X X X X X X X ........ ........ ........

Germany................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Ghana..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Greece.................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Grenada................................... X X ........ X ........ X X X X X X ........ X ........ ........

Guatemala................................. X X ........ X ........ X X X X X X ........ X ........ ........

Guinea.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Guinea-Bissau............................. X X ........ X ........ X X X X X X ........ X ........ ........

Guyana.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Haiti..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Honduras.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Hong Kong................................. X X ........ X ........ X X \2\ X X X X ........ X ........ ........

Hungary................................... X ........ ........ ........ ........ X X X X X X ........ X ........ ........

Iceland................................... X ........ ........ X ........ X X X X ........ ........ ........ ........ ........ ........

India..................................... X X X X X X X X X X X ........ X ........ ........

Indonesia................................. X X ........ X ........ X X X X X X ........ X ........ ........

Iran......................................

(14) See part 746 of the EAR to determine

whether a license is required in order to

export or reexport to this destination.

Iraq \1\..................................

(14) See part 746 of the EAR to determine

whether a license is required in order to

export or reexport to this destination.

Ireland................................... X ........ ........ ........ ........ X ........ X X X X ........ X ........

Israel.................................... X X X X X X X X X X X ........ X ........ ........

Italy..................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Jamaica................................... X X ........ X ........ X X X X X X ........ X ........ ........

Japan..................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Jordan.................................... X X X X ........ X X X X X X ........ X ........ ........

Kazakhstan................................ X X X X ........ X X X X X X X ........ ........ ........

Kenya..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Kiribati.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Korea, North..............................

(14) See part 746 of the EAR to determine

whether a license is required in order to

export or reexport to this destination.

Korea, South.............................. X ........ ........ ........ ........ X X \2\ X X X X ........ X ........ ........

Kuwait.................................... X X X X ........ X X X X X X ........ X ........ ........

Kyrgyzstan................................ X X X X ........ X X X X X X X ........ ........ ........

Laos...................................... X X ........ X ........ X X X X X X X ........ ........ ........

Latvia.................................... X X ........ X ........ X X X X X X X ........ ........ ........

Lebanon................................... X X X X ........ X X X X X X ........ X ........ ........

Lesotho................................... X X ........ X ........ X X X X X X ........ X ........ ........

Liberia................................... X X ........ X ........ X X X X X X ........ X ........ ........

Libya.....................................

(14) See part 746 of the EAR to determine

whether a license is required in order to

export or reexport to this destination.

Liechtenstein............................. X X ........ X ........ X X X X X X ........ X ........ ........

Lithuania................................. X X ........ X ........ X X X X X X X ........ ........ ........

Luxembourg................................ X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

FYROM (Macedonia)......................... X X ........ X ........ X X X X X X ........ X ........ ........

Madagascar................................ X X ........ X ........ X X X X X X ........ X ........ ........

Malawi.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Malaysia.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Maldives.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Mali...................................... X X ........ X ........ X X X X X X ........ X ........ ........

Malta..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Marshall Islands.......................... X X ........ X ........ X X X X X X ........ X ........ ........

Mauritania................................ X X ........ X ........ X X X X X X ........ X ........ ........

Mauritius................................. X X ........ X ........ X X X X X X ........ X ........ ........

Mexico.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Micronesia................................ X X ........ X X X X X X X X ........ X ........ ........

Moldova................................... X X X X ........ X X X X X X ........ ........ ........ ........

Monaco.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Mongolia.................................. X X X X ........ X X X X X X X ........ ........ ........

Morocco................................... X X ........ X ........ X X X X X X ........ X ........ ........

Mozambique................................ X X ........ X ........ X X X X X X ........ X ........ ........

Namibia................................... X X ........ X ........ X X X X X X ........ X ........ ........

Nauru..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Nepal..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Netherlands............................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

New Zealand............................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Nicaragua................................. X X ........ X ........ X X X X X X ........ X ........ ........

Niger..................................... X X ........ X ........ X X X X X X ........ X ........ ........

[[Page 6685]]

Nigeria................................... X X ........ X ........ X X X X X X ........ X ........ ........

Norway.................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Oman...................................... X X X X X X X X X X X ........ X ........ ........

Pakistan.................................. X X X X X X X X X X X ........ X ........ ........

Palau..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Panama.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Papua New Guinea.......................... X X ........ X ........ X X X X X X ........ X ........ ........

Paraguay.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Peru...................................... X X ........ X ........ X X X X X X ........ X ........ ........

Philippines............................... X X ........ X ........ X X X X X X ........ X ........ ........

Poland.................................... X ........ ........ ........ ........ X X X X X X ........ X ........ ........

Portugal.................................. X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Qatar..................................... X X X X ........ X X X X X X ........ X ........ ........

Romania................................... X ........ ........ ........ ........ X X X X X X X ........ ........ ........

Russia.................................... X X X ........ ........ X X X X X X X ........ ........ ........

Rwanda \1\................................ X X ........ X ........ X X X X X X X X ........ ........

St. Kitts & Nevis......................... X X X X ........ X X X X X X ........ X ........ ........

St. Lucia................................. X X ........ X ........ X X X X X X ........ X ........ ........

St. Vincent & Grenadines.................. X X ........ X ........ X X X X X X ........ X ........ ........

San Marino................................ X X ........ X ........ X X X X X X ........ X ........ ........

Sao Tome & Principe....................... X X ........ X ........ X X X X X X ........ X ........ ........

Saudi Arabia.............................. X X X X ........ X X X X X X ........ X ........ ........

Senegal................................... X X ........ X ........ X X X X X X ........ X ........ ........

Serbia & Montenegro....................... X X ........ X ........ X X X X X X ........ X ........ ........

Seychelles................................ X X ........ X ........ X X X X X X ........ X ........ ........

Sierra Leone.............................. X X ........ X ........ X X X X X X ........ X ........ ........

Singapore................................. X X ........ X ........ X X X X X X ........ X ........ ........

Slovakia.................................. X ........ ........ ........ ........ X X X X X X ........ X ........ ........

Slovenia.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Solomon Islands........................... X X ........ X ........ X X X X X X ........ X ........ ........

Somalia................................... X X ........ X ........ X X X X X X ........ X ........ ........

South Africa.............................. X X ........ ........ ........ X X X X X X ........ X ........ ........

Spain..................................... X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Sri Lanka................................. X X ........ X ........ X X X X X X ........ X ........ ........

Sudan..................................... X X ........ X ........ X X X X X X ........ X X X

Surinam................................... X X ........ X ........ X X X X X X ........ X ........ ........

Swaziland................................. X X ........ X ........ X X X X X X ........ X ........ ........

Sweden.................................... X ........ ........ ........ ........ X ........ X X X X ........ X ........ ........

Switzerland............................... X ........ ........ ........ ........ X ........ X X X X ........ X ........ ........

Syria..................................... X X X X ........ X X X X X X ........ X X ........

Taiwan.................................... X X X X ........ X X X X X X ........ X ........ ........

Tajikistan................................ X X X X ........ X X X X X X X ........ ........ ........

Tanzania.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Thailand.................................. X X ........ X ........ X X X X X X ........ X ........ ........

Togo...................................... X X ........ X ........ X X X X X X ........ X ........ ........

Tonga..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Trinidad & Tobago......................... X X ........ X ........ X X X X X X ........ X ........ ........

Tunisia................................... X X ........ X ........ X X X X X X ........ X ........ ........

Turkey.................................... X X ........ X ........ X ........ X X ........ ........ ........ ........ ........ ........

Turkmenistan.............................. X X X X ........ X X X X X X X ........ ........ ........

Tuvalu.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Uganda.................................... X X ........ X ........ X X X X X X ........ X ........ ........

Ukraine................................... X X X ........ ........ X X X X X X X ........ ........ ........

United Arab Emirates...................... X X X X X X X X X X X ........ X ........ ........

United Kingdom............................ X ........ ........ ........ ........ X ........ X X ........ ........ ........ ........ ........ ........

Uruguay................................... X X ........ X ........ X X X X X X ........ X ........ ........

Uzbekistan................................ X X X X ........ X X X X X X X ........ ........ ........

Vanuatu................................... X X ........ X X X X X X X X ........ X ........ ........

Vatican City.............................. X X ........ X ........ X X X X X X ........ X ........ ........

Venezuela................................. X X ........ X ........ X X X X X X ........ X ........ ........

Vietnam................................... X X X X ........ X X X X X X X ........ ........ ........

Western Sahara............................ X X ........ X ........ X X X X X X ........ X ........ ........

Western Samoa............................. X X ........ X ........ X X X X X X ........ X ........ ........

Yemen..................................... X X X X ........ X X X X X X ........ X ........ ........

Zaire..................................... X X ........ X ........ X X X X X X ........ X ........ ........

Zambia.................................... X X ........ X ........ X X X X X X ........ X ........

Zimbabwe.................................. X X ........ X ........ X X X X X X ........ X ........

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

\1\ This country is subject to United Nations Sanctions. See part 746 of the EAR for additional OFAC licensing requirements that may apply to your proposed transaction.

\2\ A license is required only for computers controlled by 4A001, 4A002, & 4A003 if the CTP is greater than 10,000 Mtops. A license is Nuired for any other items subject to NS Column 2.

PART 740--[AMENDED]

4. In Supplement Number 1 to Part 740, Country Groups, Country

Group A is revised to read as follows:

[[Page 6686]]

Country Group A

Missile

technology Australia Nuclear

Country control group suppliers

regime group

[A:1] [A:2] [A:3] [A:4]

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

Argentina............................................... ............ X X X

Australia............................................... X X X X

Austria \1\............................................. ............ X X X

Belgium................................................. X X X X

Brazil.................................................. ............ X ............ ............

Bulgaria................................................ ............ ............ ............ X

Canada.................................................. X X X X

Czech Republic.......................................... ............ ............ X X

Denmark................................................. X X X X

Finland \1\............................................. ............ X X X

France.................................................. X X X X

Germany................................................. X X X X

Greece.................................................. X X X X

Hong Kong \1\........................................... ............ ............ ............ ............

Hungary................................................. ............ X X X

Iceland................................................. ............ X X ............

Ireland \1\............................................. ............ X X X

Italy................................................... X X X X

Japan................................................... X X X X

Korea, South \1\........................................ ............ ............ X X

Luxembourg.............................................. X X X X

Netherlands............................................. X X X X

New Zealand \1\......................................... ............ X X X

Norway.................................................. X X X X

Poland.................................................. ............ ............ X X

Portugal................................................ X X X X

Romania................................................. ............ ............ X X

Russia.................................................. ............ X ............ X

Slovakia................................................ ............ ............ X X

South Africa............................................ ............ X ............ X

Spain................................................... X X X X

Sweden \1\.............................................. ............ X X X

Switzerland \1\......................................... ............ X X X

Turkey.................................................. X ............ ............ ............

United Kingdom.......................................... X X X X

United States........................................... X X X X

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

\1\ Cooperating Countries.

PART 770--[AMENDED]

5. In section 770.2 paragraph (k) is amended by revising the third

sentence to read as follows:

Sec. 770.2 Commodity interpretations.

* * * * *

(k) * * * These chemicals require a license to all countries except

Argentina, Australia, Austria, Belgium, Canada, Czech Republic,

Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland,

Italy, Japan, Korea (South), Luxembourg, the Netherlands, New Zealand,

Norway, Poland, Portugal, Romania, Slovak Republic, Spain, Sweden,

Switzerland, and the United Kingdom.

* * * * *

PART 772--[AMENDED]

6. In part 772, the definition of ``Australia Group'' is revised to

read as follows:

PART 772--DEFINITIONS OF TERMS

* * * * *

Australia Group. The members belonging to this group have agreed to

adopt controls on dual-use chemicals, i.e., weapons precursors,

equipment, and biological microorganisms and related equipment in order

to prevent the proliferation of chemical and biological weapons. Member

countries as of October 1996 include: Argentina, Australia, Austria,

Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany,

Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea (South),

Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal,

Romania, Slovak Republic, Spain, Sweden, Switzerland, the United

Kingdom, and the United States. See also Sec. 742.2 of the EAR.

* * * * *

PART 774--[AMENDED]

In Supplement No. 1 to part 774, Category 1--Materials, Chemicals,

``Microorganisms'', and Toxins, ECCN 1C350 is amended by revising the

License Requirement Notes section to read as follows:

1C350 Chemicals, that may be used as precursors for toxic chemical

agents.

* * * * *

License Requirement Notes

1. SAMPLE SHIPMENTS: Certain sample shipments of chemicals

controlled under ECCN 1C350 may be made without a license, as provided

by the following: a. Chemicals Not Eligible: The following chemicals

are not eligible for sample shipments: 0-Ethyl-2-diisopropylaminoethyl

methylphosphonite (QL) (C.A.S. #57856-11-8), Ethylphosphonyl difluoride

(C.A.S. #753-98-0), and

[[Page 6687]]

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

b. Countries Not Eligible: The following countries are not eligible

to receive sample shipments: Cuba, Iran, Libya, North Korea, Sudan,

Syria.

c. Sample Shipments: A license is not required for sample shipments

when the cumulative total of these shipments does not exceed a 55-

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

calendar year. Multiple sample shipments, in any quantity, not

exceeding the totals indicated in this paragraph may be exported

without a license, in accordance with the provisions of this NOTE 1. A

consignee that receives a sample shipment under this exclusion may not

resell, transfer or reexport the sample shipment, but may use the

sample shipment for any other legal purpose unrelated to chemical

weapons. However, a sample shipment received under this exclusion

remains subject to all General Prohibitions including the end-use

restriction described in Sec. 744.4 of the EAR.

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

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

company letterhead stationery (titled ``Report of Sample Shipments of

Chemical Precursors'' at the top of the first page) and identify the

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

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

exported. The report must be sent to the U.S. Department of Commerce,

Bureau of Export Administration, Room 2705, Washington, DC 20230, Attn:

``Report of Sample Shipments of Chemical Precursors''.

2. MIXTURES: Mixtures controlled by this entry that contain certain

concentrations of precursor and intermediate chemicals are subject to

the following licensing requirements:

a. A license is required, regardless of the concentrations in the

mixture, for the following chemicals: 0-Ethyl-2-diisopropylaminoethyl

methylphosphonite (QL) (C.A.S. #57856-11-8), Ethylphosphonyl difluoride

(C.A.S. #753-98-0) and Methylphosphonyl difluoride (C.A.S. #676-99-3);

b. A license is required when at least one of the following

chemicals constitutes more than 10 percent of the weight of the mixture

on a solvent free basis: Arsenic trichloride (C.A.S. #7784-34-1),

Benzilic acid (C.A.S. #76-93-7), Diethyl ethylphosphonate (C.A.S. #78-

38-6), Diethyl methylphosphonite (C.A.S. #15715-41-0), Diethyl-N,N-

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

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

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

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

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

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

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

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

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

Methylphosphonous dichloride [Methylphosphinyl dicloride] (C.A.S. #676-

83-5), Methylphosphonous difluoride [Methylphosphinyl difluoride]

(C.A.S. #753-59-3), Methylphosphonyl dichloride (C.A.S. #676-97-1),

Pinacolyl alcohol (C.A.S. #464-07-3), 3-Quinuclidinol (C.A.S. #1619-34-

7), and Thiodiglycol (C.A.S. #111-48-8); (Related ECCN: 1C995)

c. A license is required when at least one of all other chemicals

in the List of Items Controlled constitutes more than 25 percent of the

weight of the mixture on a solvent free basis (related ECCN: 1C995);

and

d. A license is not required under this entry for mixtures when the

controlled chemical is a normal ingredient in consumer goods packaged

for retail sale for personal use. Such consumer goods are controlled by

ECCN EAR99.

e. Calculation of concentrations of AG-controlled chemicals.

1. Usual Commercial Purposes. In calculating the percentage of an

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

be excluded if it was not added for usual commercial purposes, but was

added for the sole purpose of circumventing the Export Administration

Regulations.

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

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

exclude from the calculation any component of the mixture that acts as

a solvent.

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

dissolving another substance to form a uniformly dispersed mixture

(solution)''.

Solvents are liquids at standard temperature and pressure

(STP).

In no instance is an AG controlled chemical considered a

``solvent''.

All ingredients of mixtures are expressed in terms of

weight.

The solvent component of the mixture converts it into a

solution.

3. COMPOUNDS: A license is not required under this entry for

chemical compounds created with any chemicals identified in this ECCN

1C350, unless those compounds are also identified in this entry.

* * * * *

Dated: February 7, 1997.

Sue E. Eckert,

Assistant Secretary for Export Administration.

[FR Doc. 97-3490 Filed 2-11-97; 8:45 am]

BILLING CODE 3510-33-P