Expansion of License Exception CIV Eligibility for ``Microprocessors'' Controlled by ECCN 3A001 and Graphics Accelerators Controlled by ECCN 4A003

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 774

[Docket No. 990701179-9301-02]

RIN 0694-AB90

Expansion of License Exception CIV Eligibility for

``Microprocessors'' Controlled by ECCN 3A001 and Graphics Accelerators

Controlled by ECCN 4A003

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Interim rule with request for comments.

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

Commerce Control List (CCL), which identifies those items subject to

Department of Commerce export licensing requirements. Consistent with

technological changes, this interim rule adjusts the License Exception

CIV eligibility level for microprocessors controlled by Export Control

Classification Number (ECCN) 3A001 from a composite theoretical

performance (CTP) of equal to or less than 1900 million theoretical

operations per second (MTOPS) to a CTP of equal to or less than 3500

MTOPS. This rule also adjusts the License Exception CIV eligibility

level for graphics accelerators controlled by Export Control

Classification Number (ECCN) 4A003 from 10 million vectors per second

to 75 million vectors per second. License Exception CIV is available

for exports and reexports to civil end-users for civil end-uses in

Country Group D:1.

In light of rapid technological advancement in microprocessors, the

United States will review the eligibility level for microprocessors in

January 2000 to determine if further adjustments are warranted. If

further adjustments are warranted, BXA anticipates publishing the

revision in Spring 2000.

DATES: This rule is effective November 26, 1999. Comments on this rule

must be received on or December 27, 1999.

ADDRESSES: Written comments should be sent to Hillary Hess, Regulatory

Policy Division, Bureau of Export Administration, Department of

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

FOR FURTHER INFORMATION CONTACT: James Lewis, Director, Office of

Strategic Trade and Foreign Policy Controls, Bureau of Export

Administration, Telephone: (202) 482-4196.

SUPPLEMENTARY INFORMATION: Although the Export Administration Act (EAA)

expired on August 20, 1994, the President invoked the International

Emergency Economic Powers Act and continued in effect the EAR, and, to

the extent permitted by law, the provisions of the EAA in Executive

Order 12924 of August 19, 1994, as extended by the President's notices

of August 15, 1995 (60 FR 42767), August 14, 1996 (61 FR 42527), August

13, 1997 (62 FR 43629), August 13, 1998 (63 FR 44121), and August 10,

1999 (64 FR 44101, August 13, 1999).

Rulemaking Requirements

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

purposes of E.O. 12866.

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

required to respond to, nor shall any person be subject to a penalty

for failure to comply with a collection of information, subject to the

requirements of the Paperwork Reduction Act (PRA), unless that

collection of information displays a currently valid OMB Control

Number. This rule involves a collection of information subject to the

Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) This

collection has been approved by the Office of Management and Budget

under control number 0694-0088.

3. This rule does not contain policies with Federalism implications

sufficient to warrant preparation of a Federalism assessment under

Executive Order 13132.

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

law requires that a notice of proposed rulemaking and an opportunity

for public comment be given for this interim rule. Because a notice of

proposed rulemaking and an opportunity for public comment are not

required to be given for this rule under the Administrative Procedure

Act or by any other law, the analytical requirements of the Regulatory

Flexibility Act (5 U.S.C. 601 et seq. ) are not applicable.

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 on December 27,

1999. The Department will consider all comments received before the

close of the comment period in developing final regulations. Comments

received after the end of the comment period will be considered if

possible, but their consideration cannot be assured. The Department

will not accept public comments accompanied by a request that a part or

all of the material be treated confidentially because of its business

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

such comments and materials to the person submitting the comments and

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

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

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

interest of accuracy and completeness, the Department requires comments

in written form.

Oral comments must be followed by written memoranda, which will

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

review and copying. Communications from agencies of the

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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 6883, 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 the Bureau of Export

Administration Freedom of Information Officer at the above address or

by calling (202) 482-0500.

List of Subjects in 15 CFR Part 774

Exports, Foreign Trade.

Accordingly, part 774 of the Export Administration Regulations (15

CFR parts 730 through 799) is amended as follows:

PART 774--(AMENDED)

1. The authority citation for part 774 continues to read as

follows:

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

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

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

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

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

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

E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61

FR 58767, 3 CFR, 1996 Comp., p. 228; Notice of August 10, 1999 (64

FR 44101, August 13, 1999).

PART 774--AMENDED

Supplement No. 1 to Part 774--AMENDED

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

Category 3--Electronics, Export Control Classification Number (ECCN)

3A001 is amended by revising the License Exceptions section to read as

follows:

3A001 Electronic components, as follows (see List of Items

Controlled).

* * * * *

License Exceptions

LVS: N/A for MT

$1500: 3A001.c

$3000: 3A001.b.1, b.2, b.3, .d, .e and .f

$5000: 3A001.a, and .b.4 to b.7

GBS: Yes, except 3A001.a.1.a, b.1, b.3 to b.7, .c to .f

CIV: Yes, except 3A001.a.1, a.2, a.3.a (for processors with a CTP

greater than 3500 Mtops), a.5, a.6, a.9, a.10, and a.12, .b, .c, .d,

.e, and .f

* * * * *

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

Category 4--Computers, Export Control Classification Number (ECCN)

4A003 is amended by revising the License Exceptions section to read as

follows:

4A003 ``Digital computers'', ``electronic assemblies'', and

related equipment therefor, and specially designed components therefor.

* * * * *

License Exceptions

LVS: $5000; N/A for MT and ``digital'' computers controlled by 4A003.b

and having a CTP exceeding 10,000 MTOPS; or ``electronic assemblies''

controlled by 4A003.c and capable of enhancing performance by

aggregation of ``computing elements'' so that the CTP of the

aggregation exceeds 10,000 MTOPS.

GBS: Yes, for 4A003.d, .e, and .g and specially designed components

therefor, exported separately or as part of a system.

CTP: Yes, for computers controlled by 4A003.a, .b and .c, to the

exclusion of other technical parameters, with the exception of

parameters specified as controlled for Missile Technology (MT) concerns

and 4A003.e (equipment performing analog-to-digital or digital-to-

analog conversions exceeding the limits of 3A001.a.5.a). See Sec. 740.7

of the EAR.

CIV: Yes, for 4A003.d (having a 3-D vector rate less than 75 M vectors/

sec), .e, and .g.

* * * * *

Dated: November 18, 1999.

R. Roger Majak,

Assistant Secretary for Export Administration.

[FR Doc. 99-30706 Filed 11-24-99; 8:45 am]

BILLING CODE 3510-33-P