WPCW w(rŨ| H)d6+ M[l)Oߥа4g\qa$]؅!= -exScPxaӞ(E745i*Ijĸej<噫ك >!]D493 uH?!nS80hbܶl",';l²"Z'L@*&NYvX.eֶ;a_q;au?*bPjKs5'|vX{6*Czpqt]wb%釥%C$x=Y.%x UNU U< 1u 72T ^ w 4   m 0c 0N5 5 5 1 0V  ```9 1_..88DHP LaserJet 4100 PS0(9 Z6Times New Roman RegularX($USUS.,\  `&Times New Roman(hH  Z 6Times New Roman Regular%\  `$Times NewRoman3#37=CIQYag1.a.i.(1)(a)(i)1)a)i)j1s \qR0.XCorel3|x U(;3$2#  0  .3  0  (O$(5hCEKQW]cioAutoList11.1.1.1.1.1.1.1.(.3$ !USUS.,   c*USUS.,  _  򀀀 /  #(Xd#3$37;?CGKOS-*+x  mailto:mblaskov@bis.doc.govmailto:mblaskov@bis.doc.govmailto:David_Rostker@omb.eop.gov, !USUS.,  _   ` e hrF    `     h      p     XXXX `     h      p   BillingCode:3510-33-P ` ?+ ` hp x X?   `     h      p   DEPARTMENTOFCOMMERCE h       L  BureauofIndustryandSecurity   15_CFR_ԀParts740and744   h      \ [DocketNo.040818241424101]  \ _RIN_Ԁ0694-AC46      `    RevisionstotheExportAdministrationRegulations:RemovaloftheListofMissileProjectsand l ExpansionofMissilerelatedEndUseandEndUserControls D! AGENCY:BureauofIndustryandSecurity,Commerce $D #   ACTION:InterimRule.   h      p      x  (#'  T,'+ h h8XXdd8 h  SUMMARY:#XXXX#ThisinterimruleamendstheExportAdministrationRegulations(EAR)by d removingthelistofmissileprojectsofconcernandexpandinglicenserequirementsformissile < relatedendusersandenduses.Thisruleexpandsthescopeof endusestowhichalicense   requirementappliestoincludecertainrocketandunmannedairvehicle activitiesincertain   countriesofconcernformissileproliferationreasons.Inaddition,thisruleimplementsanew  ` licenserequirementforexports,_reexports_Ԁandtransfersanywhereintheworldthatapplieswhen 8  youknoworareinformedthatanitemsubjecttotheEARwillbeusedinrocketsystemsor t  unmannedairvehiclesofanyrangeforthedeliveryofchemical,biologicalornuclearweapons. L  ThesechangestotheenduseandendusercontrolsarenecessarytomeetU.S._nonproliferation_ $ objectivesandareconsistentwiththeMissileTechnologyControlRegime(_MTCR_)Guidelines.XXXX  DATE:Thisruleiseffective[#XXXXF #XXXXINSERTDATEOFPUBLICATION#XXXX #XXXX]. H ADDRESSES:#XXXX #XXXXYoumaysubmitcomments,identifiedby_RIN_Ԁ0694AC46#XXXX #XXXX,byanyofthe \ followingmethods: 4   p($33"J3"    J32$3  0 `   Email:#XXXX #XXXX4y ]O  5  Ԁmblaskov@bis.doc.gov6]O  7 v #XXXX#XXXX.Include _RIN_Ԁ0694AC46inthesubjectlineof  " themessage.J3>݌# ` (#` (# Ќ  "J3"    J32$3  0 `   Fax:(202)4823355J3݌%X"` (#` (# Ќ  "J3"    J3y2$3  0 `   MailorHandDelivery/Courier:#XXXX#XXXXMatthew_Blaskovich_#XXXX;#XXXX,U.S.DepartmentofJ3y݌'0!$` (#` (# Ќ   D+$( "J3"    J3<2$3  0 `   Commerce,BureauofIndustryandSecurity,RegulatoryPolicyDivision,14th& d PennsylvaniaAvenue,_N.W._,Room2705#XXXX#XXXX,Washington,D.C.20230,ATTN:_RIN_ < 0694AC46.#XXXX#4z B ]O  5  6.]OB  7 B XXXX J3<u݌ ` (#` (# Ќ  #XXXX#XXXXFORFURTHERINFORMATIONCONTACT:StevenB._Clagett_,Director,Nuclearand  ` MissileTechnologyControlsDivision,BureauofIndustryandSecurity,Telephone: 8  (202)482-1641. t  SUPPLEMENTARYINFORMATION: $  Background  p CurrentLicenseRequirementsforMissileRelatedEnduses/Endusers.#XXXX#XXXXSection742.5ofthe   ExportAdministrationRegulations(EAR)requiresalicensefortheexportor_reexport_Ԁtoall \ destinations(exceptCanada)ofthosedualuseitemsspecificallyidentifiedontheCommerce 4  ControlList(CCL)ascontrolledformissiletechnology(MT)reasons.Section744.3oftheEAR  " alsorequiresalicensefortheexportor_reexport_ԀofanyitemsubjecttotheEAR,whenthe #  exporterknowsorhasreasontoknowthattheitem(1)isdestinedforamissileprojectlistedin %X" thefootnotetoCountryGroupD:4inSupplement1topart740oftheEAR,or(2)willbeusedin '0!$ thedesign,development,production,oruseofmissilesinorbyacountrylistedinCountry l)#& GroupD:4,whetherornottheuseinvolvesaprojectlistedinthefootnote. Missileisdefined D+$( intheEARasarocketsystemorunmannedairvehiclesystemcapableofdeliveringatleast500 d kilogramspayloadtoarangeofatleast300kilometers.Thelistofmissileprojectssetforthin < thefootnotetoSupplementNo.1topart740includesonlythoseprojectsmeetingthe missile   payloadandrangecriteria.   RemovalofListofMissileProjectsinD:4Countries.#XXXXn#XXXXThisruleremovesthelistofmissile 8  projectsinD:4countriessetforthinthefootnoteinSupplementNo.1toPart740oftheEAR t  becausetheactivitiessubjecttothelicenserequirementsetforthin744.3arenolongerlimitedto L   missileprojectswithacertainpayloadandrangecapability.Thereferencedactivitiesare $ expanded,bythisrule,toincludeanyrocketsystemorunmannedairvehiclewitharangeof300  kilometerstobeusedinD:4countries. p  #XXXX#XXXXWorldwideLicenseRequirementforDeliverySystemsforChemical,BiologicalorNuclear   Weapons.#XXXX(!#Thisruleimplementsanewlicenserequirementinsection744.3forexports, \ _reexports_Ԁandtransferstoanywhereintheworldthatapplieswhenyouknow,orareinformed, 4  thatanitemsubjecttotheEARwillbeusedinrocketsystemsorunmannedairvehiclesofany  " rangeforthedeliveryofchemical,biologicalornuclearweapons.XXXXԀ #  #XXXX##XXXXExpansionofEndUseLicenseRequirementforCountryGroupD:4Countries.Thisrulerevises '0!$ thelicenserequirementsundersection744.3oftheEARtoprovidethatalicenseisrequiredfor l)#& theexport,_reexport_ԀortransferofanyitemsubjecttotheEARifyouknow,orareinformed,that D+$( theitem#XXXX##XXXXԀwillbeused#XXXX%#XXXXԀinthedesign,development,productionoruseofrocketsystemsor d unmannedairvehiclescapableofarangeofatleast300kilometersinorbyacountrylistedin < CountryGroupD:4.#XXXX&#XXXXThisrulealsoprovidesthatalicenseisrequiredifyouknowthattheitem#XXXX)'#XXXX   willbeusedinthedesign,development,productionoruseofrocketsystemsorunmannedair   vehicles#XXXX'#XXXXԀinorbyacountrylistedinCountryGroupD:4,butareunabletodeterminethe  ` characteristics(i.e.,rangecapabilities)oftherocketsystemsorunmannedairvehicles,or 8  whethertherocketsystemsorunmannedairvehicles,regardlessofrangecapabilities,#XXXX(#XXXXԀareused t  forthedeliveryofchemical,biological,ornuclearweapons. L  Forpurposesofthisrule, rocketsystemsinclude,butarenotlimitedto,ballisticmissile  systems,spacelaunchvehicles,andsoundingrockets. Unmannedairvehiclesinclude,butare p notlimitedto,cruisemissilesystems,targetdronesandreconnaissancedrones.Thisruleadds H thesedefinitionsinanotetosection744.3oftheEAR.   Thisruleimposesnewexportcontrolsforforeignpolicyreasons.Asrequiredbysection6ofthe 4  ExportAdministrationActof1979,asamended(theAct),areportontheimpositionofthese  " controlswasdeliveredtoCongressonSeptember20,2004.#XXXX)#XXXX #  AlthoughtheActexpiredonAugust20,2001,ExecutiveOrder13222ofAugust17,2001(3 '0!$ _CFR_,2001Comp.,p.783(2002)),asextendedbytheNoticeofAugust6,2004,69FR48763 l)#& (August10,2004),continuestheEARineffectundertheInternationalEmergencyEconomic D+$( PowersAct.#XXXX-#XXXX d #XXXXS/#XXXX SavingsClause      #XXXX/# XXXXShipmentsofitemsthataresubjecttoalicenserequirementasaresultofthisregulatoryaction  ` thatwereondockforloading,onlighter,ladenaboardanexportingcarrier,orenrouteaboarda 8  carriertoaportofexport,on[#XXXX/0#XXXXINSERTDATEOFPUBLICATION]#XXXX1#XXXX,pursuanttoactualordersfor t  exporttoaforeigndestination,mayproceedtothatdestinationwithoutalicensesolongasthey L  havebeenexportedfromtheUnitedStatesbefore#XXXX1#XXXX[INSERTDATE30DAYSAFTERDATEOF $ PUBLICATION]#XXXX3#XXXX.Anysuchitemsnotactuallyexportedbeforemidnight,on#XXXX3#XXXX[INSERTDATE30  DAYSAFTERDATEOFPUBLICATION]#XXXX 4#XXXX,requirealicenseinaccordancewiththisregulation.#XXXX4#XXXX p #XXXX5#XXXX  #XXXXe5#XXXX#XXXX5#XXXX _Rulemaking_ԀRequirements      1. ` ThisrulehasbeendeterminedtobenotsignificantforpurposesofExecutive 4  Order12866.  "   2. ` #XXXX5#Notwithstandinganyotherprovisionoflaw,nopersonisrequiredtorespondto, #  norshallanypersonbesubjecttoapenaltyforfailuretocomplywithacollectionofinformation, %X" subjecttotherequirementsofthePaperworkReductionAct,unlessthatcollectionofinformation '0!$ displaysacurrentlyvalidOfficeofManagementandBudgetControlNumber.Thisruleinvolves l)#& acollectionofinformationsubjecttothePaperworkReductionActof1980(44U.S.C.3501et D+$( _seq.).ThiscollectionhasbeenapprovedbytheOfficeofManagementandBudgetundercontrol d number0694-0088,"Multi-PurposeApplication,"whichcarriesaburdenhourestimateof58 < minutesforamanualorelectronicsubmission.Sendcommentsregardingtheseburdenestimates   oranyotheraspectofthesecollectionsofinformation,includingsuggestionsforreducingthe   burden,toDavidRostker,OfficeofManagementandBudget(OMB),byemailto  ` 4{is]O  5  David_Rostker@omb.eop.gov,6;]O;  7isf<Ԁorbyfaxto(202)3957285;andtotheOfficeofAdministration, 8  BureauofIndustryandSecurity,DepartmentofCommerce,14thandPennsylvaniaAvenue, t  N.W.,Room6883,Washington,D.C.20230.XXXX L    3. ` ThisruledoesnotcontainpolicieswithFederalismimplicationsasthattermis $ definedinExecutiveOrder13132.    4. ` TheprovisionsoftheAdministrativeProcedureAct(5U.S.C.553)requiring p noticeofproposedrulemaking,theopportunityforpublicparticipation,andadelayineffective H date,areinapplicablebecausethisregulationinvolvesamilitaryandforeignaffairsfunctionof   theUnitedStates(Sec.5U.S.C.553(a)(1)).Further,nootherlawrequiresthatanoticeof \ proposedrulemakingandanopportunityforpubliccommentbegivenforthisinterimrule. 4  Becauseanoticeofproposedrulemakingandanopportunityforpubliccommentarenotrequired  " tobegivenforthisruleunder5U.S.C.553orbyanyotherlaw,theanalyticalrequirementsof #  theRegulatoryFlexibilityAct(5U.S.C.601#XXXX=#XXXXetseq#XXXXA#XXXX.)arenotapplicable. %X" #XXXX>B#XXXXHowever,becauseoftheimportanceoftheissuesraisedbytheseregulations,thisruleisbeing l)#& issuedininterimformandBISwillconsidercommentsinthedevelopmentofthe_final D+$( regulations.Accordingly,BISencouragesinterestedpersonswhowishtocommenttodosoat d theearliestpossibletimetopermitthefullestconsiderationoftheirviews. < Theperiodforsubmissionofcommentswillclose[45DAYSAFTERDATEOF   PUBLICATION].BISwillconsiderallcommentsreceivedbeforethecloseofthecomment  ` periodindevelopingfinalregulations.Commentsreceivedaftertheendofthecommentperiod 8  willbeconsideredifpossible,buttheirconsiderationcannotbeassured.BISwillnotaccept t  publiccommentsaccompaniedbyarequestthatapartorallofthematerialbetreated L  confidentiallybecauseofitsbusinessproprietarynatureorforanyotherreason.BISwillreturn $ suchcommentsandmaterialstothepersonssubmittingthecommentsandwillnotconsiderthem  inthedevelopmentoffinalregulations.Allpubliccommentsontheseregulationswillbea p matterofpublicrecordandwillbeavailableforpublicinspectionandcopying.Intheinterestof H accuracyandcompleteness,BISrequirescommentsinwrittenform.   Oralcommentsmustbefollowedbywrittenmemoranda,whichwillalsobeamatterofpublic 4  recordandwillbeavailableforpublicreviewandcopying.Communicationsfromagenciesof  " theUnitedStatesGovernmentorforeigngovernmentswillnotbeavailableforpublicinspection. #  #XXXXB#ThepublicrecordconcerningthesecommentswillbemaintainedintheBureauofIndustryand '0!$ Security,OfficeofAdministration,U.S.DepartmentofCommerce,Room6883,14thStreetand l)#& ConstitutionAvenue,NW,Washington,DC20230;(202)4822165.Thiscomponentdoesnot D+$( maintainaseparatepublicinspectionfacility.RequestersshouldfirstviewBIS's_FOIA_Ԁwebsite d (whichcanbereachedthroughhttp://www.bis.doc.gov/foia).Iftherecordssoughtcannotbe < locatedatthissite,oriftherequesterdoesnothaveaccesstoacomputer,pleasecallthephone   numberaboveforassistance.XXXX   PleaserefertotheADDRESSESsectioncitedaboveforcommentsubmission.#XXXX9M#XXXX 8   #XXXXM# XXXXListofSubjects L  ̀15_CFR_Ԁpart740    Exports,Foreigntrade,Reportingand_Recordkeeping_Ԁrequirements. p 15_CFR_Ԁpart744 H   Exports,Foreigntrade,Reportingand_Recordkeeping_Ԁrequirements.   #XXXX8N#XXXX  Accordingly,parts740and744oftheExportAdministrationRegulations(15_CFR_ԀParts 4  730-799)areamendedasfollows:  " #XXXX-P#XXXX PART740[AMENDED]  %X"   1.0 ` Theauthoritycitationfor15_CFR_Ԁpart740isrevisedtoreadasfollows:l)#&` (#` (#  D+$( rF  r r  #XXXX;Q#XXXX   Authority : 50U.S.C.app.2401etseq.;50U.S.C.1701etseq.;Sec.901911,Pub.L.  106387;E.O.13026,61FR58767,3_CFR_,1996Comp.,p.228;E.O.13222,66FR44025,3  _CFR_,2001Comp.,p.783;NoticeofAugust6,2004,69FR48763(August10,2004).#XXXXR#  XXXX   #XXXXT#?+ ` hp x X? XXXX `(5h83p! !"J3"    J3V25h  2  .3  0 `   #XXXX@U#?+ ` hp x X?ӀSupplementNo.1toPart740isamendedbyremovingthefootnotetoCountryJ3V:V݌^ ` (#` (# Ќ       ` GroupD:4,andallfootnotereferencesinthetable. 6 h XXXX PART744-[AMENDED]      `   #XXXXW# XXXX3. ` #XXXXX#?+ ` hp x X?XXXXTheauthoritycitationfor15_CFR_Ԁ#XXXX(Y#XXXXPart744continuestoreadasfollows:     Authority:#XXXXY#XXXX50U.S.C.app.2401#XXXXZZ#XXXXetseq#XXXXZ#XXXX.;50U.S.C.1701#XXXXZ#XXXXetseq#XXXXU[#XXXX.;22U.S.C.3201#XXXX[#XXXXetseq#XXXX[#XXXX.;42 n U.S.C.2139a;Sec.901-911,Pub.L.106-387;Sec.221,Pub.L.107-56;E.O.12058,43FR Fx 20947,3_CFR_,1978Comp.,p.179;E.O.12851,58FR33181,3_CFR_,1993Comp.,p.608;E.O. P 12938,59FR59099,3_CFR_,1994Comp.,p.950;E.O.12947,60FR5079,3_CFR_,1995Comp., ( p.356;E.O.13026,61FR58767,3_CFR_,1996Comp.,p.228;#XXXXB\#XXXXE.O.13099,63FR45167,3  _CFR_,1998Comp.,p.208#XXXX^#XXXX;#XXXXk_#XXXXԀE.O.13222,66FR44025,#XXXX_#XXXXԀ3_CFR_,2001Comp.,p.783;E.O.13224,  66FR49079,3_CFR_,2001Comp.,p.786;NoticeofOctober29,2003,68FR62209,3_CFR_, ~! 2003Comp.,p.347;NoticeofAugust6,2004,69FR48763(August10,2004).#XXXX `#XXXX V#    #XXXXa# XXXX   4.#XXXXb#XXXX ` #XXXX_b# XXXX Section744.3isamended#XXXXb#XXXXԀbyrevisingthesectionheading,andparagraphs(a),(b) '8!$ and(d)toreadasfollows: (#&  ,&*  744.3RestrictionsonCertainRocketSystems(includingballisticmissilesystemsand  spacelaunchvehiclesandsoundingrockets)andUnmannedAirVehicles(includingcruise  missilesystems,targetdronesandreconnaissancedrones)EndUses#XXXX c#XXXX.  ~  (a)Generalprohibition.InadditiontothelicenserequirementsforitemsspecifiedontheCCL, . ` youmaynotexport,_reexport_,ortransfer(incountry)anitemsubjecttotheEAR,withouta 8  licenseifatthetimeoftheexport,_reexport_Ԁortransferyouknowtheitem:     (1)Willbeusedinthedesign,development,productionoruseofrocketsystemsor  unmannedairvehiclescapableofarangeofatleast300kilometersinorbyacountrylistedin f CountryGroupD:4ofSupplementNo.1topart740oftheEAR. >p   (2)Willbeused,anywhereintheworld,inrocketsystemsorunmannedairvehicles,   regardlessofrangecapabilities,#XXXXe#XXXXforthedeliveryofchemical,biological,ornuclearweapons;or    (3)Willbeusedinthedesign,development,productionoruseofanyrocketsystemsor v! unmannedairvehiclesinorbyacountrylistedinCountryGroupD:4,butyouareunableto N#  determine: &%X"    ` (_i_)Thecharacteristics(i.e.,rangecapabilities)oftherocketsystemsorunmanned &0!$ airvehicles,or (#&    ` (ii)Whethertherocketsystemsorunmannedairvehicles#XXXXh#,regardlessofrange *$( capabilities,willbeusedinamannerprohibitedunderparagraph(a)(2)ofthissection.XXXX ,&* Ї8   Notetoparagraph(a)ofthissection: Forthepurposesofthissection, Rocket  Systemsinclude,butarenotlimitedto,ballisticmissilesystems,spacelaunch  vehicles,andsoundingrockets.Also,forthepurposesofthissection, unmanned ~  airvehiclesinclude,butarenotlimitedto,cruisemissilesystems,targetdrones V  andreconnaissancedrones.. `   #XXXX l#XXXX(b)Additionalprohibition.BISmayinform,eitherindividually,byspecificnotice,orgenerally   throughamendmenttotheEAR,thatalicenseisrequiredforaspecificexport,_reexport_Ԁor   transferofspecifieditemstoacertainenduser,anywhereintheworld#XXXX[n#XXXX,becausethereisan  unacceptableriskofuseinordiversiontoactivitiesdescribedinparagraphs(a)(1)or(a)(2)of f thissection.Specificnoticeistobegivenonlyby,oratthedirectionof,theDeputyAssistant >p SecretaryforExportAdministration.Whensuchnoticeisprovidedorally,itwillbefollowedby H awrittennoticewithintwoworkingdayssignedbytheDeputyAssistantSecretaryforExport   Administration.However,theabsenceofanysuchnotificationdoesnotexcusenoncompliance  withthelicenserequirementsofparagraphs(a)(1),(a)(2),or(a)(3)ofthissection.#XXXXo#XXXX   ***** #XXXXr#XXXX N#  (d)LicenseReviewStandards.(1)Applicationstoexport,_reexport_Ԁortransfertheitemssubject &0!$ tothissectionwillbeconsideredonacasebycasebasistodeterminewhethertheexport, (#& _reexport_Ԁortransferwouldmakeamaterialcontributiontotheproliferationofcertainrocket *$( systems,orunmannedairvehicles.Whenanexport,_reexport_Ԁortransferisdeemedtomakea ,&* materialcontribution,thelicensewillbedenied.    (2)Thefollowingfactorsareamongthosethatwillbeconsideredtodeterminewhat  actionshouldbetakenonanapplicationrequiredbythissection: ~     ` (_i_)Thespecificnatureoftheenduse; V     ` (ii)Thesignificanceoftheexport,_reexport_Ԁortransferintermsofitscontribution . ` tothedesign,development,productionoruseofcertainrocketsystemsorunmannedair 8  vehicles;      ` (iii)Thecapabilitiesandobjectivesoftherocketsystemsorunmannedair   vehiclesoftherecipientcountry;     ` (iv)The_nonproliferation_Ԁcredentialsoftheimportingcountry; f    ` (v)Thetypesofassurancesorguaranteesagainstdesign,development, >p production,oruseforcertainrocketsystemorunmannedairvehicledeliverypurposesthatare H giveninaparticularcase;and      ` (vi)Theexistenceofapreexistingcontract.   #XXXXms# DATED: v! Peter_Lichtenbaum_ &0!$ AssistantSecretary (#& forExportAdministration