ÿWPCF E>;ç÷³,ñYެÈEŽ I3Ü5j,ªumßb˜ñüráuV¾bÛ¹È?—Ùí·øÜ«6Õ3T¶‹ û«ä¶@îJÿÐ$M*qþ‡!*%%ÞªWŽJrÝv¤ÒŸžÏöhcìKA…I&ji­^{sÌž>Û °ùR³Êaá4|aÙɆò‡áF~°õ+Ýóìײ>B ÚÅÉÕ±zð'º“/:}PÅ - Ô©²9#aoÄo‡¿`.™k  Ò\( 1TŸj|ï\^Òˆ¼—H^c¤ÿå`{Z¿`lM™UäAÙ ÞŸS‰3Uð3q<åÓïI~QŸZ^ÍîûÆ×L–ž¸ûLÄÈææKÒpž¿èÞ ´äe8‹‡pŒÏmPeq.¬fB~Õ݆ΩŸêb<äN‚YV)l²r—“2Á­8þ¶ÔÊ6‘ o^p¥K¸¹—¨$_ò|¢ÛˆˆXDjüñ( Õ=ù¡*ÔŠ](7úÌ: ÇÑ9d÷Tgk×ñ ¨#Á¸UNy %Ç 0:ÍN^ w4- m/#|x˜HP LaserJet 4100 PSØÈÈØØÈØÈ0(ÖÃ9 Z‹6Times New Roman RegularX(üœ$¡¡ÔUSUS.,ÔI¦í4s Ó]œ4í4ö–Backup)ÿU‹ÿÀÀÀÝ ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_ÔÑ8€±äXXdìdÈ8ÑBilling€code:€3510-33-P€Ð ° ÐÌÌDEPARTMENT€OF€COMMERCEÐ tÄ ÐÌÌBureau€of€Industry€and€SecurityÐ 8 ˆ ÐÌÌ15€Ô_ÔCFRÔ_Ô€Parts€740,€742,€744€and€748€Ð ü L  ÐÌÌ[Docket€No.€060622180-6180-01]Ð À  ÐÌÌÔ_ÔRINÔ_Ô€0694-AD75Ð „Ô  ÐÌÓÓÌRevisions€and€Clarification€of€Export€and€Ô_ÔReexportÔ_Ô€Controls€for€the€Peopleððs€Republic€of€ChinaÐ 4„ Ð(PRC);€New€Authorization€Validated€End-UserÐ  \ ÐÌAGENCY:€€Bureau€of€Industry€and€Security,€CommerceÐ ¼  ÐÌACTION:€€Proposed€ruleÐ l¼ ÐÌSUMMARY:Ð #l! ÐÌIt€is€the€policy€of€the€United€States€Government€to€prevent€exports€that€would€make€a€materialÐ Ì&"% Ðcontribution€to€the€military€capability€of€the€Peopleððs€Republic€of€China€(PRC),€while€facilitatingÐ ¤(ô#' ÐU.S.€exports€to€legitimate€civil€end-users€in€the€PRC.€Consistent€with€this€policy,€the€Bureau€ofÐ |*Ì%) ÐIndustry€and€Security€(BIS)€proposes€to€amend€the€Export€Administration€Regulations€(EAR)€byÐ ° Ðrevising€and€clarifying€United€States€licensing€requirements€and€licensing€policy€on€exports€andÐ ˆØ ÐÔ_ÔreexportsÔ_Ô€of€goods€and€technology€to€the€PRC.€€Ð `° ÐÌThe€proposed€amendments€include€a€revision€to€the€licensing€review€policy€for€items€controlledÐ  ` Ðon€the€Commerce€Control€List€(CCL)€for€reasons€of€national€security,€including€a€new€controlÐ è 8  Ðbased€on€knowledge€of€a€military€end-use€on€exports€to€the€PRC€of€certain€CCL€items€thatÐ À  Ðotherwise€do€not€require€a€license€to€the€PRC.€€€€The€items€subject€to€this€license€requirementÐ ˜è  Ðwill€be€set€forth€in€a€list.€€This€rule€further€proposes€to€revise€the€licensing€review€policy€forÐ pÀ Ðitems€controlled€for€reasons€of€chemical€and€biological€proliferation,€nuclear€Ô_ÔnonproliferationÔ_Ô,Ð H˜ Ðand€missile€technology€for€export€to€the€PRC,€requiring€that€applications€involving€such€items€beÐ  p Ðreviewed€in€conjunction€with€the€revised€national€security€licensing€policy.€€Ð øH ÐÌThis€rule€proposes€the€creation€of€a€new€authorization€for€validated€end-users€in€certainÐ ¨ø Ðdestinations,€including€the€PRC,€to€whom€certain,€specified€items€may€be€exported€or€Ô_ÔreexportedÔ_Ô.Ð €Ð ÐSuch€validated€end-users€would€be€placed€on€a€list€in€the€EAR€after€review€and€approval€by€theÐ X ¨ ÐUnited€States€Government.€€Ð 0"€  ÐÌFinally,€this€rule€proposes€to€require€exporters€to€obtain€an€End-User€Certificate,€issued€by€theÐ à%0!$ ÐPRC€Ministry€of€Commerce,€for€all€items€that€both€require€a€license€to€the€PRC€for€any€reasonÐ ¸'#& Ðand€exceed€a€total€value€of€$5,000.€€The€current€PRC€End-Use€Certificate€applies€only€to€itemsÐ )à$( Ðcontrolled€for€national€security€reasons.€€This€rule€also€proposes€to€eliminate€the€currentÐ h+¸&* Ðrequirement€that€exporters€submit€PRC€End-User€Certificates€to€BIS€with€their€licenseÐ ° Ðapplications€but€provides€that€they€must€retain€them€for€five€years.Ð ˆØ ÐÌ€ÌÌÌDATES:€€Comments€must€be€received€by€[INSERT€120€DAYS€FROM€THE€PUBLICATIONÐ À  ÐDATE]Ð ˜è  ÐÌÌADDRESSES:€€Written€comments€on€this€rule€may€be€sent€to€the€Federal€Ô_ÔeRulemakingÔ_Ô€Portal:Ð  p Ðhttp://www.regulations.gov,€or€by€e-mail€to€publiccomments@bis.doc.gov.gov.€€Include€Ô_ÔRINÔ_ÔÐ øH Ð0694-AD75€in€the€subject€line€of€the€message.€€Comments€may€be€submitted€by€mail€or€handÐ Ð  Ðdelivery€to€Sheila€Ô_ÔQuartermanÔ_Ô,€Office€of€Exporter€Services,€Regulatory€Policy€Division,€BureauÐ ¨ø Ðof€Industry€and€Security,€Department€of€Commerce,€14th€€St.€&€Pennsylvania€Avenue,€Ô_ÔN.W.Ô_Ô,Ð €Ð ÐRoom€2705,€Washington,€D.C.€20230,€ATTN:€Ô_ÔRINÔ_Ô€0694-AD75;€or€by€fax€to€(202)482-3355.Ð X ¨ ÐÌSend€comments€regarding€the€collection€of€information€to€David€Ô_ÔRostkerÔ_Ô,€Office€of€ManagementÐ $X" Ðand€Budget€(OMB),€by€e-mail€to€David_Rostker@omb.eop.gov,€or€by€fax€to€(202)395-7285;€andÐ à%0!$ Ðto€the€Regulatory€Policy€Division,€Bureau€of€Industry€and€Security,€Department€of€Commerce,Ð ¸'#& ÐP.O.€Box€273,€Washington,€DC€€20044.Ð )à$( ÐÐ h+¸&* ЇFOR€FURTHER€INFORMATION€CONTACT:€€Bernard€Ô_ÔKritzerÔ_Ô,€Director,€Office€of€NationalÐ ° ÐSecurity€and€Technology€Transfer€Controls,€Bureau€of€Industry€and€Security,€Department€ofÐ ˆØ ÐCommerce,€P.O.€Box€273,€Washington,€DC€20044;€telephone:€(202)€482-0092,€or€e-mail:Ð `° Ðbkritzer@bis.doc.gov.€€Ð 8 ˆ ÐÌSUPPLEMENTARY€INFORMATIONÐ è 8  ÐBackgroundÐ À  ÐÌThis€rule€proposes€revisions€and€clarifications€to€United€States€policy€on€exports€to€the€PeopleððsÐ pÀ ÐRepublic€of€China€(PRC)€of€goods€and€technologies€controlled€for€national€security€and€foreignÐ H˜ Ðpolicy€reasons.€€As€the€PRC€has€increased€its€participation€in€the€global€economy,€bilateral€tradeÐ  p Ðbetween€the€PRC€and€the€United€States€has€grown€rapidly,€and€the€PRC€has€emerged€as€a€majorÐ øH Ðmarket€for€U.S.€exports.€€In€addition,€as€the€PRC€also€increasingly€has€allowed€foreignÐ Ð  Ðinvestment,€many€U.S.€companies€have€established€significant€business€operations€there.€€ThisÐ ¨ø Ðgreatly€expanded€economic€relationship€is€beneficial€for€both€nations.€€The€United€States€andÐ €Ð ÐChina€share€an€interest€in€expanding€free€and€fair€trade,€which€has€increased€the€prosperity€ofÐ X ¨ Ðboth€the€American€and€Chinese€people.€€At€the€same€time,€the€United€States€has€a€long€standingÐ 0"€  Ðpolicy€of€not€permitting€exports€that€would€make€a€material€contribution€to€the€PRCððs€militaryÐ $X" Ðcapability.€€Thus,€the€United€States€seeks€to€facilitate€trade€for€confirmed€civil€end-uses€andÐ à%0!$ Ðend-users€in€the€PRC,€while€preventing€trade€that€would€serve€military€end-uses.€Ð ¸'#& ÐÌIn€2005,€U.S.€companies€exported€approximately€$41€billion€worth€of€items€to€the€PRC.€€DuringÐ h+¸&* Ðthe€same€period,€approximately€$2.4€billion€worth€of€exports€were€licensed€for€export€to€theÐ ° ÐPRC,€while€$12.5€million€worth€of€exports€were€denied.€€In€order€to€strengthen€U.S.€GovernmentÐ ˆØ Ðconfidence€that€these€U.S.€exports€conform€to€U.S.€policy€and€to€determine€the€bona€fides€ofÐ `° Ðpotential€and€actual€end-users,€the€U.S.€Government€conducts€end-use€visits,€consisting€ofÐ 8 ˆ ÐPre-License€Checks€(Ô_ÔPLCsÔ_Ô)€and€Post-Shipment€Verifications€(Ô_ÔPSVsÔ_Ô).€€In€April€2004,€the€ViceÐ  ` ÐMinister€of€Commerce€of€the€PRC€and€the€U.S.€Under€Secretary€of€Commerce€for€Industry€andÐ è 8  ÐSecurity€exchanged€letters€transmitting€an€understanding€on€strengthened€procedures€forÐ À  Ðconducting€such€end-use€visits.€€This€end-use€visit€understanding€has€facilitated€exports€of€itemsÐ ˜è  Ðon€the€Commerce€Control€List€(CCL)€in€Supplement€No.€1€to€Part€774€of€the€ExportÐ pÀ ÐAdministration€Regulations€(EAR)€by€providing€greater€assurance€that€U.S.€exports€of€controlledÐ H˜ Ðdual-use€items€are€being€used€by€their€intended€recipients€for€their€intended€purposes.Ð  p ÐÌThis€rule€proposes€certain€revisions€and€clarifications€to€licensing€requirements€and€policies€withÐ Ð  Ðregard€to€the€PRC€to€more€precisely€reflect€U.S.€export€control€policy.Ð ¨ø ÐÌRevision€of€licensing€review€policy€and€license€requirements€Ð X ¨ ÐÌTo€strengthen€U.S.€efforts€to€prevent€U.S.€exports€to€the€PRC€that€would€make€a€materialÐ $X" Ðcontribution€to€the€PRCððs€military€capabilities,€this€rule€proposes€revisions€to€the€licensingÐ à%0!$ Ðreview€policy€for€items€controlled€on€the€CCL€for€reasons€of€national€security€(i.e.,€controlledÐ ¸'#& Ðpursuant€to€the€Ô_ÔWassenaarÔ_Ô€Arrangement),€set€forth€in€section€742.4(b)(7)€of€the€EAR.€Ð )à$( ÐSpecifically,€this€rule€amends€section€742.4(b)(7)€to€reaffirm€that€the€overall€policy€of€the€UnitedÐ h+¸&* ÐStates€for€exports€to€the€PRC€of€these€items€is€to€approve€exports€for€civil€applications€butÐ ° Ðgenerally€to€deny€exports€that€will€contribute€to€the€advancement€of€Chinese€military€capabilities.€Ð ˆØ ÐÌConsistent€with€this€revised€policy€and€U.S.€commitments€as€a€Participating€State€in€theÐ 8 ˆ ÐÔ_ÔWassenaarÔ_Ô€Arrangement€regarding€review€of€€items€not€on€that€regimeððs€dual€use€list€that€areÐ  ` Ðdestined€for€military€end-use€in€a€country€subject€to€an€arms€embargo,€this€rule€proposes€toÐ è 8  Ðimplement€a€new€control€on€exports€to€the€PRC€of€certain€CCL€items€that€otherwise€do€notÐ À  Ðrequire€a€license€to€the€PRC€when€the€exporter€has€knowledge,€as€defined€in€section€772.1€of€theÐ ˜è  ÐEAR,€€that€such€items€are€destined€for€military€end-use€in€the€PRC€or€is€informed€that€such€itemsÐ pÀ Ðare€destined€for€such€an€end-use.€€The€additional€items€that€would€be€subject€to€this€militaryÐ H˜ Ðend-use€restriction€are€based€on€careful€interagency€review€of€items€listed€on€the€CCL€thatÐ  p Ðcurrently€do€not€require€a€license€for€export€to€the€PRC€but€have€the€potential€to€advance€theÐ øH Ðmilitary€capabilities€of€the€PRC.€€For€purposes€of€serving€this€revised€policy€and€U.S.Ð Ð  Ðcommitments€as€a€Participating€State€in€the€Ô_ÔWassenaarÔ_Ô€Arrangement,€this€rule€proposes€to€defineÐ ¨ø Ð"military€end-useðð€as:€€incorporation€into,€or€use€for€the€production€,€design,€development,Ð €Ð Ðmaintenance,€operation,€installation,€or€deployment,€repair,€overhaul,€or€refurbishing€of€items€(1)Ð X ¨ Ðdescribed€on€the€U.S.€Munitions€List€(Ô_ÔUSMLÔ_Ô)€(22€Ô_ÔCFRÔ_Ô€Part€121,€International€Traffic€in€ArmsÐ 0"€  ÐRegulations);€(2)€described€on€the€Munitions€List€(IML)€(as€set€out€on€the€Ô_ÔWassenaarÔ_ÔÐ $X" ÐArrangement€website€at€http://www.wassenaar.org);€or€(3)€listed€under€Export€ControlÐ à%0!$ ÐClassification€Numbers€(Ô_ÔECCNsÔ_Ô)€ending€in€"A018"€on€the€CCL€in€Supplement€No.€1€to€Part€774Ð ¸'#& Ðof€the€EAR.€€This€new€control€would€be€set€forth€in€new€section€744.21€of€the€EAR.€€Ð )à$( ÐÐ h+¸&* ÐApplications€to€export,€Ô_ÔreexportÔ_Ô,€or€transfer€items€controlled€pursuant€to€proposed€section€744.21Ð ° Ðwould€be€reviewed€on€a€case-by-case€basis€to€determine€whether€the€export,€Ô_ÔreexportÔ_Ô,€or€transferÐ ˆØ Ðwould€make€a€material€contribution€to€the€military€capabilities€of€the€PRC€and€would€result€inÐ `° Ðadvancing€the€countryððs€military€activities€contrary€to€the€national€security€interests€of€the€UnitedÐ 8 ˆ ÐStates.€€Other€end-use€controls€in€part€744€of€the€EAR€will€continue€to€apply.€€In€addition,€BISÐ  ` Ðproposes€to€also€review€license€applications€for€items€controlled€for€chemical€and€biologicalÐ è 8  Ðproliferation,€nuclear€Ô_ÔnonproliferationÔ_Ô€and€missile€technology€under€sections€742.2,€742.3€andÐ À  Ð742.5,€respectively,€of€the€EAR,€in€accordance€with€the€licensing€policies€in€both€paragraph€(b)Ð ˜è  Ðof€the€particular€proliferation€section€and€section€742.4(b)(7)€of€the€EAR€when€those€items€areÐ pÀ Ðdestined€to€the€PRC.€€Ð H˜ ÐÌÌItems€primarily€affected€by€the€revisions€discussed€in€this€section€are€items€controlled€forÐ Ð  Ðanti-terrorism€reasons€under€the€EAR.€€The€specific€items€that€are€subject€to€the€military€end-useÐ ¨ø Ðlicense€requirement€will€be€set€forth,€by€Ô_ÔECCNÔ_Ô,€including€specific€parameters,€in€a€list€inÐ €Ð ÐSupplement€No.€2€to€Part€744€of€the€EAR.€€Ð X ¨ ÐÌSee€sections€744.6€(Restrictions€on€certain€activities€of€U.S.€persons),€744.21€(Restrictions€onÐ $X" ÐCertain€Military€End-uses€in€the€Peopleððs€Republic€of€China€(PRC)),€and€Supplement€No.€2€toÐ à%0!$ ÐPart€744€(SUPPLEMENT€NO.€2€TO€PART€744€„€LIST€OF€ITEMS€SUBJECT€TO€THEÐ ¸'#& ÐMILITARY€END-USE€LICENSE€REQUIREMENT€OF€SECTION€744.21)€of€the€EAR.Ð )à$( ÐÐ h+¸&* ÐRevision€of€End-User€Certificate€requirementsÐ ° ÐÌTo€strengthen€implementation€of€the€April€2004€end-use€visit€understanding€between€the€ViceÐ `° ÐMinister€of€Commerce€of€the€PRC€and€the€U.S.€Under€Secretary€of€Commerce€for€Industry€andÐ 8 ˆ ÐSecurity,€this€rule€proposes€that€the€requirement€for€exporters€to€obtain€PRC€End-UserÐ  ` ÐCertificates€from€the€Ministry€of€Commerce€of€the€PRC€be€expanded€to€apply€to€all€exports€ofÐ è 8  Ðcontrolled€goods€and€technologies€over€a€specific€value€threshold€(and€not€merely€to€thoseÐ À  Ðexports€controlled€for€national€security€reasons,€as€currently€set€forth€in€section€748.10€of€theÐ ˜è  ÐEAR).€€Specifically,€exporters€would€be€required€to€obtain€an€End-User€Certificate,€issued€by€theÐ pÀ ÐPRC€Ministry€of€Commerce,€for€all€items€that€require€a€license€to€the€PRC€for€any€reason€andÐ H˜ Ðexceed€a€total€value€of€$5,000€per€single€Ô_ÔECCNÔ_Ô€entry.€€Consistent€with€the€existing€Regulations,Ð  p ÐBIS€will€continue€to€require€End-User€Certificates€for€all€computer€exports€to€the€PRC€thatÐ øH Ðrequire€license€applications,€regardless€of€the€dollar€value€of€the€export.€€BIS€anticipates€that€thisÐ Ð  Ðexpansion€of€the€End-Use€Certificate€requirement€will€facilitate€Ô_ÔBISð$ðsÔ_Ô€ability€to€conductÐ ¨ø Ðend-use€checks€on€exports€or€Ô_ÔreexportsÔ_Ô€of€controlled€goods€and€technologies€to€the€PRC,Ð €Ð Ðconsistent€with€the€existing€end-use€visit€understanding€with€the€Government€of€the€PRC.€Ð X ¨ ÐFacilitation€of€end-use€checks€should€facilitate€increased€U.S.€exports€to€the€PRC.€€This€revisedÐ 0"€  Ðrequirement€would€be€set€forth€in€revised€section€748.10€of€the€EAR.Ð $X" ÐÌTo€minimize€the€impact€that€this€expanded€support€documentation€requirement€will€have€onÐ ¸'#& Ðexporters,€this€rule€also€proposes€to€eliminate€the€requirement€that€exporters€submit€PRCÐ )à$( ÐEnd-User€Certificates€to€BIS€as€required€support€documentation€provided€with€the€licenseÐ h+¸&* Ðapplication.€€Instead,€this€rule€would€require€exporters€to€include€the€serial€number€of€the€PRCÐ ° ÐEnd-User€Certificate€in€an€appropriate€field€of€the€license€application,€and€to€retain€the€PRCÐ ˆØ ÐEnd-User€Certificate€in€accordance€with€the€Ô_ÔrecordkeepingÔ_Ô€provisions€of€the€EAR.€€See€sectionÐ `° Ð762.3€(Records€exempt€from€Ô_ÔrecordkeepingÔ_Ô€requirements)€of€the€EAR.€€These€changes€would€beÐ 8 ˆ Ðset€forth€in€sections€748.9€(Support€Documents€for€License€Applications),€748.10€(Import€andÐ  ` ÐEnd-User€Certificates),€and€748.12€(Special€Provisions€for€Support€Documents)€of€the€EAR.€Ð è 8  ÐÌNew€Authorization€Validated€End-User€(Ô_ÔVEUÔ_Ô)Ð ˜è  ÐÌTo€facilitate€legitimate€exports€to€civilian€end-users,€BIS€proposes€to€establish€a€newÐ H˜ Ðauthorization€for€validated€end-users€in€section€748.15€of€the€EAR.€€This€proposed€authorizationÐ  p Ðwould€allow€the€export,€Ô_ÔreexportÔ_Ô,€and€transfer€of€eligible€items€to€specified€end-users€in€anÐ øH Ðeligible€destination,€including€the€PRC.€€These€validated€end-users€would€be€those€who€meet€aÐ Ð  Ðnumber€of€criteria,€including€a€demonstrated€record€of€engaging€only€in€civil€end-use€activitiesÐ ¨ø Ðand€not€contributing€to€the€proliferation€of€weapons€of€mass€destruction€or€otherwise€engaged€inÐ €Ð Ðactivity€contrary€to€U.S.€national€security€or€foreign€policy€interests.€€Ð X ¨ ÐÌIn€conjunction€with€other€relevant€agencies,€BIS€proposes€to€evaluate€prospective€validatedÐ $X" Ðend-users€on€the€basis€of€a€range€of€specific€factors,€which€include€the€partyððs€record€of€exclusiveÐ à%0!$ Ðengagement€in€civil€end-use€activities;€the€partyððs€compliance€with€U.S.€export€controls;€theÐ ¸'#& Ðpartyððs€capability€to€comply€with€the€requirements€for€Ô_ÔVEUÔ_Ô;€the€partyððs€agreement€to€on-siteÐ )à$( Ðcompliance€reviews€by€representatives€of€the€United€States€Government;€and€the€partyððsÐ h+¸&* Ðrelationships€with€Ô_ÔU.SÔ_Ô€and€foreign€companies.€€In€addition,€when€evaluating€the€eligibility€of€anÐ ° Ðend-user,€agencies€would€consider€the€status€of€export€controls€in€the€eligible€destination€and€theÐ ˆØ Ðsupport€and€adherence€to€multilateral€export€control€regimes€of€the€government€of€the€eligibleÐ `° Ðdestination.€€The€proposed€rule€states€that€requests€to€be€listed€as€a€validated€end-user€should€beÐ 8 ˆ Ðsubmitted€in€the€form€of€an€advisory€opinion€request€as€set€forth€in€new€section€748.15(a)(2)Ð  ` Ð(Eligible€end-users)€of€the€EAR.€€In€addition,€requests€would€have€to€include€a€list€of€itemsÐ è 8  Ðidentified€by€Ô_ÔECCNÔ_Ô€that€would€be€exported,€Ô_ÔreexportedÔ_Ô€or€transferred€to€an€eligible€end-user.€Ð À  ÐThose€items€would€have€to€be€specified€to€the€extent€of€the€applicable€subparagraph€of€the€Ô_ÔECCNÔ_ÔÐ ˜è  Ðentry.€€The€request€also€should€include€a€description€of€how€each€item€would€be€used€by€theÐ pÀ Ðeligible€end-user€in€an€eligible€destination.€€Such€requests€would€be€accepted€from€exporters,Ð H˜ ÐÔ_ÔreexportersÔ_Ô€and€end-users.€€A€list€of€validated€end-users,€respective€eligible€items,€and€eligibleÐ  p Ðdestinations€would€appear€in€proposed€Supplement€No.€7€to€Part€748€(SUPPLEMENT€NO.€7€TOÐ øH ÐPART€748€„€AUTHORIZATION€VALIDATED€END-USER€(Ô_ÔVEUÔ_Ô):€LIST€OF€VALIDATEDÐ Ð  ÐEND-USERS,€RESPECTIVE€ELIGIBLE€ITEMS€AND€ELIGIBLE€DESTINATIONS)€of€theÐ ¨ø ÐEAR.€Ð €Ð ÐÌThe€proposed€rule€also€provides,€as€set€forth€in€proposed€section€748.15(c)€(Item€restrictions),Ð 0"€  Ðthat€some€items€would€not€be€eligible€for€export,€Ô_ÔreexportÔ_Ô,€or€transfer€under€this€authorization.€Ð $X" ÐIneligible€items€are€those€restricted€by€statute.€Ð à%0!$ ÐÌFinally,€under€new€section€748.15,€exporters,€Ô_ÔreexportersÔ_Ô€and€end-users€who€use€authorizationÐ )à$( ÐÔ_ÔVEUÔ_Ô€would€be€required€to€comply€with€Ô_ÔrecordkeepingÔ_Ô€and€reporting€requirements,€as€describedÐ h+¸&* Ðin€sections€748.15(e)€(Certification€and€Ô_ÔrecordkeepingÔ_Ô)€and€(f)€(Reporting€and€auditingÐ ° Ðrequirements)€of€the€EAR.€€As€required€in€proposed€section€748.15(e),€prior€to€the€initial€exportÐ ˆØ Ðor€Ô_ÔreexportÔ_Ô€under€authorization€Ô_ÔVEUÔ_Ô,€exporters€or€Ô_ÔreexportersÔ_Ô€would€be€required€to€receive€andÐ `° Ðretain€certifications€from€eligible€end-users€that€state€that€they€are€informed€of€and€will€abide€byÐ 8 ˆ Ðall€Ô_ÔVEUÔ_Ô€end-use€restrictions;€they€have€procedures€in€place€to€ensure€compliance€with€the€termsÐ  ` Ðand€conditions€of€Ô_ÔVEUÔ_Ô;€they€will€not€use€items€obtained€under€Ô_ÔVEUÔ_Ô€in€any€of€the€prohibitedÐ è 8  Ðactivities€described€in€part€744€of€the€EAR;€and€they€agree€to€allow€on-site€visits€by€U.S.Ð À  ÐGovernment€officials€to€verify€their€compliance€with€the€conditions€of€Ô_ÔVEUÔ_Ô.€€ValidatedÐ ˜è  Ðend-users€found€to€be€not€in€compliance€with€the€requirements€of€Ô_ÔVEUÔ_Ô€as€set€forth€in€sectionÐ pÀ Ð748.15€will€be€subject€to€removal€from€the€list€of€validated€end-users€and€other€action,€asÐ H˜ Ðappropriate.Ð  p ÐÌIn€addition,€as€described€in€proposed€section€748.15(f)(1),€exporters€and€Ô_ÔreexportersÔ_Ô€who€useÐ Ð  Ðauthorization€Ô_ÔVEUÔ_Ô€would€be€required€to€submit€annual€reports€to€BIS.€€These€reports€mustÐ ¨ø Ðinclude€specific€information€regarding€the€export€or€Ô_ÔreexportÔ_Ô€of€eligible€items€to€each€validatedÐ €Ð Ðend-user.€Exporters,€Ô_ÔreexportersÔ_Ô,€and€end-users€who€avail€themselves€of€Ô_ÔVEUÔ_Ô€also€would€beÐ X ¨ Ðaudited€on€a€routine€basis,€as€described€in€proposed€section€748.15(f)(2)€(Audits).€€Upon€requestÐ 0"€  Ðby€BIS,€exporters,€Ô_ÔreexportersÔ_Ô,€and€validated€end-users€would€be€required€to€allow€inspection€ofÐ $X" Ðrecords€or€on-site€compliance€review.€€For€audit€purposes,€this€rule€would€require€records€andÐ à%0!$ Ðinformation€identified€in€proposed€section€748.15€to€be€retained€in€accordance€with€theÐ ¸'#& ÐÔ_ÔrecordkeepingÔ_Ô€requirements€set€forth€in€part€762€of€the€EAR.Ð )à$( ÐÐ h+¸&* ЇAlthough€the€Export€Administration€Act€expired€on€August€20,€2001,€the€President,€throughÐ ° ÐExecutive€Order€13222€of€August€17,€2001€(3€Ô_ÔC.F.R.Ô_Ô,€2001€Comp.,€p.€783€(2002)),€as€extendedÐ ˆØ Ðby€the€Notice€of€August€2,€2005,€70€FR€45273€(August€5,€2005),€has€continued€the€ExportÐ `° ÐAdministration€Regulations€in€effect€under€the€International€Emergency€Economic€Powers€Act.€Ð 8 ˆ ÐBIS€proposes€to€amend€the€EAR€in€this€rule€under€the€provisions€of€the€Ô_ÔEAAÔ_Ô€as€continued€inÐ  ` Ðeffect€under€Ô_ÔIEEPAÔ_Ô€and€Executive€Order€13222.Ð è 8  ÐÌExpansion€of€Foreign€Policy-Based€ControlsÐ ˜è  ÐÌ[The€following€language€will€apply€at€the€point€the€rule€passes€the€proposed€stage:€This€action€isÐ H˜ Ðtaken€after€consultation€with€the€Secretary€of€State.€€This€rule€imposes€new€export€controls€forÐ  p Ðforeign€policy€reasons.€€As€required€by€section€6€of€the€Export€Administration€Act€of€1979,€asÐ øH Ðamended€(the€Act),€a€report€on€the€imposition€of€these€controls€was€delivered€to€the€Congress€onÐ Ð  Ð[INSERT€DATE€OF€DELIVERY€TO€THE€CONGRESS.]].€€Although€the€Act€expired€on€AugustÐ ¨ø Ð20,€2001,€Executive€Order€1322€of€August€17,€2001,€3€Ô_ÔCFRÔ_Ô,€2001€Comp.,€p.€783€(2002),€asÐ €Ð Ðextended€by€the€Notice€of€August€2,€2005,€70€FR€45273€(August€5,€2005),€has€continued€theÐ X ¨ ÐExport€Administration€Regulations€in€effect€under€the€International€Emergency€EconomicÐ 0"€  ÐPowers€Act.]Ð $X" ÐÌÌÔ_ÔRulemakingÔ_Ô€RequirementsÐ )à$( Ðà  à1.€This€proposed€rule€has€been€determined€to€be€not€significant€for€purposes€of€E.O.Ð h+¸&* Ð12866.Ð ° Ðà  à2.€€Notwithstanding€any€other€provision€of€law,€no€person€is€required€to€respond€to,€norÐ ˆØ Ðshall€any€person€be€subject€to€a€penalty€for€failure€to€comply€with,€a€collection€of€informationÐ `° Ðsubject€to€the€requirements€of€the€Paperwork€Reduction€Act€of€1995€(44€U.S.C.€3501€et€seq.)Ð 8 ˆ Ð(Ô_ÔPRAÔ_Ô),€unless€that€collection€of€information€displays€a€currently€valid€Office€of€Management€andÐ  ` ÐBudget€(OMB)€Control€Number.€€This€proposed€rule€contains€collections€of€information€subjectÐ è 8  Ðto€the€requirements€of€the€Ô_ÔPRAÔ_Ô.€€These€collections€have€been€approved€by€OMB€under€ControlÐ À  ÐNumbers€0694-0088€(Multi-Purpose€Application),€which€carries€a€burden€hour€estimate€of€58Ð ˜è  Ðminutes€to€prepare€and€submit€form€BIS-748,€and€0694-0093,€ð ðImport€Certificates€and€End-UserÐ pÀ ÐCertificates,ðð€which€carries€a€burden€of€15€minutes€per€submission.€€This€proposed€rule€alsoÐ H˜ Ðcontains€a€proposed€revision€to€the€existing€collection€under€Control€Number€0694-0088€forÐ  p ÐÔ_ÔrecordkeepingÔ_Ô,€reporting€and€auditing€requirements,€which€would€be€submitted€in€connectionÐ øH Ðwith€proposed€authorization€Validated€End-User€and€would€carry€an€estimated€burden€of€30Ð Ð  Ðminutes€per€submission.€€An€amendment€to€the€existing€collection€under€Control€NumberÐ ¨ø Ð0694-0088€will€be€submitted€to€OMB€for€approval.€€Public€comment€will€be€sought€regarding€theÐ €Ð Ðburden€of€the€collection€of€information€associated€with€preparation€and€submission€of€theseÐ X ¨ Ðproposed€requirements.€This€proposed€rule€is€not€expected€to€result€in€a€significant€increase€inÐ 0"€  Ðlicense€applications€or€other€documentation€submitted€to€BIS.€€Send€comments€regarding€thisÐ $X" Ðburden€estimate€or€any€other€aspect€of€this€collection€of€information,€including€suggestions€forÐ à%0!$ Ðreducing€the€burden,€to€David€Ô_ÔRostkerÔ_Ô,€Office€of€Management€and€Budget€(OMB),€and€to€theÐ ¸'#& ÐRegulatory€Policy€Division,€Bureau€of€Industry€and€Security,€Department€of€Commerce,€asÐ )à$( Ðindicated€in€the€ð ðADDRESSESðð€section€of€this€rule.Ð h+¸&* Ðà  à3.€This€rule€does€not€contain€policies€with€Federalism€implications€as€that€term€is€definedÐ ° Ðunder€Executive€Order€13132.Ð ˆØ Ðà  à4.€The€provisions€of€the€Administrative€Procedure€Act€(5€U.S.C.€553)€requiring€notice€ofÐ `° Ðproposed€Ô_ÔrulemakingÔ_Ô€and€the€opportunity€for€public€participation€are€inapplicable€because€thisÐ 8 ˆ Ðregulation€involves€a€military€or€foreign€affairs€function€of€the€United€States€(5€U.S.C.Ð  ` Ð553(a)(1)).€€Further,€no€other€law€requires€that€a€notice€of€proposed€Ô_ÔrulemakingÔ_Ô€and€anÐ è 8  Ðopportunity€for€public€comment€be€given€for€this€rule.€€Because€a€notice€of€proposed€Ô_ÔrulemakingÔ_ÔÐ À  Ðand€an€opportunity€for€public€comment€are€not€required€to€be€given€for€this€rule€by€5€U.S.C.€553,Ð ˜è  Ðor€by€any€other€law,€the€analytical€requirements€of€the€Regulatory€Flexibility€Act,€5€U.S.C.€601€etÐ pÀ Ðseq.,€are€not€applicable.€However,€in€order€to€obtain€the€benefit€of€a€variety€of€viewpoints€beforeÐ H˜ Ðpublishing€any€final€rule,€BIS€is€issuing€this€proposed€rule€with€a€request€for€comments.€€TheÐ  p Ðperiod€for€submission€of€comments€will€close€on€[INSERT€120€DAYS€AFTER€DATE€OFÐ øH ÐPUBLICATION].€€In€developing€a€final€rule,€BIS€will€consider€all€comments€on€all€aspects€ofÐ Ð  Ðthis€proposed€rule€that€are€received€before€the€close€of€the€comment€period.€€Comments€receivedÐ ¨ø Ðafter€the€end€of€the€comment€period€will€be€considered€if€possible,€but€their€consideration€cannotÐ €Ð Ðbe€assured.€€BIS€will€not€accept€public€comments€accompanied€by€a€request€that€a€part€or€all€ofÐ X ¨ Ðthe€material€be€treated€confidentially€because€of€its€business€proprietary€nature€or€for€any€otherÐ 0"€  Ðreason.€€BIS€will€return€such€comments€and€materials€to€the€persons€submitting€the€commentsÐ $X" Ðand€will€not€consider€them€in€the€development€of€the€final€rule.€€All€public€comments€on€thisÐ à%0!$ Ðproposed€rule€must€be€in€writing€(including€fax€or€e-mail)€and€will€be€a€matter€of€public€record,Ð ¸'#& Ðavailable€for€public€inspection€and€copying€at€the€Federal€Ô_ÔeRulemakingÔ_Ô€Portal€at€http://Ð )à$( Ðwww.regulations.gov€and€on€the€BIS€Freedom€of€Information€Act€(Ô_ÔFOIAÔ_Ô)€web€site€atÐ h+¸&* Ðhttp://www.bis.doc.gov/foia.€€BIS€does€not€maintain€a€separate€public€inspection€facility.€€If€youÐ ° Ðhave€technical€difficulties€accessing€this€web€site,€please€call€BISððs€Office€of€Administration€atÐ ˆØ Ð(202)482-0500€for€assistance.Ð `° ÐÌÌÌList€of€Subjects€Ð À  ÐÌ15€CFR€Parts€740€and€748Ð pÀ Ðà  àAdministrative€practice€and€procedure,€Exports,€Foreign€trade,€Reporting€andÐ H˜ Ðrecordkeeping€requirements.Ð  p ÐÌ15€CFR€Part€742€Ð Ð  Ðà  àExports,€Terrorism.Ð ¨ø ÐÌ15€CFR€Part€744Ð X ¨ Ѐ€€€€€€€Exports,€Foreign€trade,€Reporting€and€recordkeeping€requirements.Ð 0"€  ÐÌÌà  àAccordingly,€parts€740,€742,€744€and€748€of€the€Export€Administration€Regulations€(15Ð ¸'#& ÐCFR€Parts€730-799)€are€proposed€to€be€amended€as€follows:Ð )à$( ÐÐ h+¸&* ЇPART€742€-€[AMENDED]à  àÐ ° Ð1.à  àà ` àThe€authority€citation€for€15€Ô_ÔCFRÔ_Ô€Part€742€continues€to€read€as€follows:Ð ˆØ Ðà  àà ` àAuthority:€50€U.S.C.€app.€2401€et€seq.;€50€U.S.C.€1701€et€seq.;€18€U.S.C.€2510€etÐ `° Ðseq.;€22€U.S.C.€3201€et€seq.;€42€U.S.C.€2139a;€Sec.€901-911,€Pub.€L.€106-387;€Sec.€221,€Pub.€L.Ð 8 ˆ Ð107-56;€Sec€1503,€Pub.€L.€108-11,117€Stat.€559;€E.O.€12058,€43€FR€20947,€3€Ô_ÔCFRÔ_Ô,€1978€Comp.,Ð  ` Ðp.€179;€E.O.€12851,€58€FR€33181,€3€Ô_ÔCFRÔ_Ô,€1993€Comp.,€p.€608;€E.O.€12938,€59€FR€59099,€3Ð è 8  ÐÔ_ÔCFRÔ_Ô,€1994€Comp.,€p.€950;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€E.O.€13222,Ð À  Ð66€FR€44025,€3€Ô_ÔCFRÔ_Ô,€2001€Comp.,€p.€783;€Presidential€Determination€2003-23€of€May€7,€2003,Ð ˜è  Ð68€FR€26459,€May€16,€2003;€Notice€of€August€2,€2005,€70€FR€45273€(August€5,€2005);€Notice€ofÐ pÀ ÐOctober€25,€2005,€70€FR€62027€(October€27,€2005).Ð H˜ ÐÌ2.€€Amend€ðð742.2€by€adding€paragraph€(b)(4)€to€read€as€follows:Ð øH Ððð742.2€Proliferation€of€Chemical€and€Biological€WeaponsÐ Ð  Ð*€*€*€*€*Ð ¨ø Ѐ(b)à  à*à ` à*à ¸ à*à  àÐ €Ð Ðà  à(4)€à ` àBIS€will€review€license€applications€for€items€described€in€paragraph€(a)€of€thisÐ X ¨ Ðsection€in€accordance€with€the€licensing€policies€described€in€paragraph€(b)€of€this€section€andÐ 0"€  Ðthe€licensing€policies€in€both€paragraph€(b)€of€this€section€and€ðð742.4(b)(7)€when€those€items€areÐ $X" Ðdestined€to€the€Peopleððs€Republic€of€China.Ð à%0!$ Ð*€€€€*€€€€€*€€€€*€€€*Ð ¸'#& Ð3.€€Amend€ðð742.3€by€adding€paragraph€(b)(4)€to€read€as€follows:Ð )à$( Ððð742.3€Nuclear€Ô_ÔNonproliferationÔ_ÔÐ h+¸&* ÐÔ_Ô*€*€*€*€*Ð ° Ѐ(b)à  à*à ` à*à ¸ à*à  àÐ ˆØ Ðà  à(4)€à ` àBIS€will€also€review€license€applications€for€items€described€in€paragraph€(a)€ofÐ `° Ðthis€section€in€accordance€with€the€licensing€policies€described€in€paragraph€(b)€of€this€sectionÐ 8 ˆ Ðand€the€licensing€policies€in€both€paragraph€(b)€of€this€section€and€ðð742.4(b)(7)€when€those€itemsÐ  ` Ðare€destined€to€the€Peopleððs€Republic€of€China.Ð è 8  Ð*€€€€€€*€€€€€€*€€€€€€*€€€€€€*Ð À  ÐÌ4.€€Amend€ðð742.4€by€revising€paragraph€(b)(7)€to€read€as€follows:Ð pÀ Ððð742.4€National€SecurityÐ H˜ Ðà  à*€€à ` à*à ¸ à*à  à*à h à*Ð  p Ѐ(b)€€€à  à*à ` à*à ¸ à*Ð øH ÐÌà  à(7)€€For€the€People's€Republic€of€China,€there€is€a€general€policy€of€approval€for€licenseÐ ¨ø Ðapplications€to€export,€Ô_ÔreexportÔ_Ô,€or€transfer€items€to€civil€end-uses.€€There€is€a€presumption€ofÐ €Ð Ðdenial€for€items€that€would€make€a€material€contribution€to€the€military€capabilities€of€theÐ X ¨ ÐPeopleððs€Republic€of€China.€€Thus,€all€license€applications€for€exports,€Ô_ÔreexportsÔ_Ô,€and€transfers€toÐ 0"€  Ðthe€Peopleððs€Republic€of€China€will€be€reviewed€on€a€case-by-case€basis€to€determine€whetherÐ $X" Ðthe€export,€Ô_ÔreexportÔ_Ô,€or€transfer€would€make€a€material€contribution€to€the€military€capabilities€ofÐ à%0!$ Ðthe€People's€Republic€of€China.€€In€addition,€license€applications€may€be€reviewed€under€missileÐ ¸'#& Ðtechnology,€nuclear€Ô_ÔnonproliferationÔ_Ô,€or€chemical€and€biological€weapons€review€policies,€toÐ )à$( Ðdetermine€if€the€end-user€may€be€involved€in€proliferation€activities.€€à  àà x àà Ð àÐ h+¸&* Ðà  à*à ` à*à ¸ à*à  à*Ð ° Ð5.€€Amend€ðð742.5€by€adding€paragraph€(b)(4)€to€read€as€follows:Ð ˆØ Ððð742.5€Missile€TechnologyÐ `° Ð*€*€*€*€*Ð 8 ˆ Ѐ(b)à  à*à ` à*à ¸ à*à  àÐ  ` Ðà  à(4)€à ` àBIS€will€also€review€license€applications€for€items€described€in€paragraph€(a)€ofÐ è 8  Ðthis€section€in€accordance€with€the€licensing€policies€described€in€paragraph€(b)€of€this€sectionÐ À  Ðand€the€licensing€policies€in€both€paragraph€(b)€of€this€section€and€section€742.4(b)(7)€of€theÐ ˜è  ÐEAR€when€those€items€are€destined€to€the€Peopleððs€Republic€of€China.Ð pÀ Ð*€€€€€€€€*€€€€€€€€€*€€€€€€€€*€€€€€€€€€*Ð H˜ ÐÌPART€744€-€[AMENDED]Ð øH Ѐ€€€€€€€6.à  àThe€authority€citation€for€15€Ô_ÔCFRÔ_Ô€Part€744€is€revised€to€read€as€follows:Ð Ð  Ðà  àAuthority:€50€U.S.C.€app.€2401€et€seq.;€50€U.S.C.€1701€et€seq.;€22€U.S.C.€3201€et€seq.;€42Ð ¨ø ÐU.S.C.€2139a;€Sec.€901-911,€Pub.€L.€106-387;€Sec.€221,€Pub.€L.€107-56;€E.O.€12058,€43€FRÐ €Ð Ð20947,€3€Ô_ÔCFRÔ_Ô,€1978€Comp.,€p.€179;€E.O.€12851,€58€FR€33181,€3€Ô_ÔCFRÔ_Ô,€1993€Comp.,€p.€608;€E.O.Ð X ¨ Ð12938,€59€FR€59099,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€950;€E.O.€12947,€60€FR€5079,€3€Ô_ÔCFRÔ_Ô,€1995€Comp.,Ð 0"€  Ðp.€356;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€E.O.€13099,€63€FR€45167,€3Ð $X" ÐÔ_ÔCFRÔ_Ô,€1998€Comp.,€p.208;€E.O.€13222,€66€FR€44025,€3€Ô_ÔCFRÔ_Ô,€2001€Comp.,€p.€783;€E.O.€13224,Ð à%0!$ Ð66€FR€49079,€3€Ô_ÔCFRÔ_Ô,€2001€Comp.,€p.€786;€Notice€of€August€2,€2005,€70€FR€45273€(August€5,Ð ¸'#& Ð2005);€Notice€of€October€25,€2005,€70€FR€62027€(October€27,€2005)Ð )à$( ÐÐ h+¸&* Ð7.€€Amend€ðð744.6€by€revising€paragraph€(a)(1)(ii)€to€read€as€followsÐ ° Ððð744.6€Restrictions€on€certain€activities€of€U.S.€persons.Ð ˆØ Ѐ€€€€€€€(a)€*à ` à*€€€€*à ¸ àÐ `° Ѐ€€€€€€€(1)€*€€€€€*€€€€€*Ð 8 ˆ Ѐ€€€€€€€(ii)€No€U.S.€person,€as€defined€in€paragraph€(c)€of€this€section,€shall,€without€a€license€fromÐ  ` ÐBIS,€knowingly€support€an€export€or€Ô_ÔreexportÔ_Ô,€or€transfer€that€does€not€have€a€license€as€requiredÐ è 8  Ðby€this€section€or€by€ðð744.21.€€Support€means€any€action,€including€financing,€transportation,€andÐ À  Ðfreight€forwarding,€by€which€a€person€facilitates€an€export,€Ô_ÔreexportÔ_Ô,€or€transfer€without€being€theÐ ˜è  Ðactual€exporter€or€Ô_ÔreexporterÔ_Ô.Ð pÀ Ð*€€€€€€€*€€€€€€€€*€€€€€€€€*€€€€€€€*Ð H˜ Ð8.€€Section€744.21€is€added€to€read€as€follows:Ð  p Ððð744.21€Restrictions€on€Certain€Military€End-uses€in€the€Peopleððs€Republic€of€China€(PRC).Ð øH ÐÌ(a)€€General€prohibition.€€In€addition€to€the€license€requirements€for€items€specified€on€theÐ ¨ø ÐCommerce€Control€List€(CCL),€you€may€not€export,€Ô_ÔreexportÔ_Ô,€or€transfer€any€item€listed€inÐ €Ð ÐSupplement€No.€2€to€Part€744€to€the€PRC€without€a€license€or€under€a€license€exceptionÐ X ¨ Ðdescribed€in€paragraph€(c)€of€this€section€if,€at€the€time€of€the€export,€Ô_ÔreexportÔ_Ô,€or€transfer,€youÐ 0"€  Ðknow,€meaning€either:€Ð $X" Ð(1)€You€have€knowledge€that€the€item€is€intended,€entirely€or€in€part,€for€a€"military€end-use,"€asÐ à%0!$ Ðdefined€in€paragraph€(f)€of€this€section,€in€the€PRC;€or€Ð ¸'#& Ð(2)€You€have€been€informed€by€BIS€that€the€item€is€or€may€be€intended,€entirely€or€in€part,€for€aÐ )à$( Ð"military€end-use"€in€the€PRC.Ð h+¸&* Ї(b)€€Additional€prohibition€on€those€informed€by€BIS.€€BIS€may€inform€you€either€individually€byÐ ° Ðspecific€notice,€through€amendment€to€the€EAR€published€in€the€Federal€Register,€or€through€aÐ ˆØ Ðseparate€notice€published€in€the€Federal€Register,€that€a€license€is€required€for€specific€exports,Ð `° ÐÔ_ÔreexportsÔ_Ô,€or€transfers€of€any€item€because€there€is€an€unacceptable€risk€of€use€in€or€diversion€toÐ 8 ˆ Ðmilitary€end-use€activities€in€the€PRC.€€Specific€notice€will€be€given€only€by,€or€at€the€directionÐ  ` Ðof,€the€Deputy€Assistant€Secretary€for€Export€Administration.€€When€such€notice€is€providedÐ è 8  Ðorally,€it€will€be€followed€by€written€notice€within€two€working€days€signed€by€the€DeputyÐ À  ÐAssistant€Secretary€for€Export€Administration€or€the€Deputy€Assistant€Secretaryððs€designee.€€TheÐ ˜è  Ðabsence€of€BIS€notification€does€not€excuse€the€exporter€from€compliance€with€the€licenseÐ pÀ Ðrequirements€of€paragraph€(a)€of€this€section.€Ð H˜ ÐÌ(c)€License€Exception.€The€only€License€Exception€that€may€apply€to€the€prohibitions€describedÐ øH Ðin€paragraphs€(a)€and€(b)€of€this€section€are€the€provisions€of€License€Exception€Ô_ÔGOVÔ_Ô€set€forth€inÐ Ð  Ððð740.11(b)(2)(Ô_ÔiÔ_Ô)€or€(ii)€of€the€EAR.€Ð ¨ø ÐÌ(d)€License€application€procedure.€€When€submitting€a€license€application€pursuant€to€thisÐ X ¨ Ðsection,€you€must€state€in€the€"additional€information"€section€of€the€BIS-748P€"MultipurposeÐ 0"€  ÐApplication"€or€its€electronic€equivalent€that€"this€application€is€submitted€because€of€the€licenseÐ $X" Ðrequirement€in€ðð744.21€of€the€EAR€(Restrictions€on€Certain€Military€End-uses€in€the€PeopleððsÐ à%0!$ ÐRepublic€of€China)."€€In€addition,€either€in€the€additional€information€section€of€the€applicationÐ ¸'#& Ðor€in€an€attachment€to€the€application,€you€must€include€all€known€information€concerning€theÐ )à$( Ðmilitary€end-use€of€the€item(s).€€If€you€submit€an€attachment€with€your€license€application,€youÐ h+¸&* Ðmust€reference€the€attachment€in€the€additional€information€section.Ð ° ÐÌ(e)€€License€review€standards.€€Ð `° Ðà  à(1)€Applications€to€export,€Ô_ÔreexportÔ_Ô,€or€transfer€items€described€in€paragraph€(a)€of€thisÐ 8 ˆ Ðsection€will€be€reviewed€on€a€case-by-case€basis€to€determine€whether€the€export,€Ô_ÔreexportÔ_Ô,€orÐ  ` Ðtransfer€would€make€a€material€contribution€to€the€military€capabilities€of€the€PRC€and€wouldÐ è 8  Ðresult€in€advancing€the€Ô_Ôcountryð$ðsÔ_Ô€military€activities€contrary€to€the€national€security€interests€ofÐ À  Ðthe€United€States.€Ð ˜è  Ðà  à(2)€€Applications€may€be€reviewed€under€missile€technology,€nuclear€Ô_ÔnonproliferationÔ_Ô,€orÐ pÀ Ðchemical€and€biological€weapons€review€policies€if€the€end-user€may€be€involved€in€certainÐ H˜ Ðproliferation€activities.€Ð  p Ðà  à(3)€Applications€for€items€requiring€a€license€for€other€reasons€that€are€destined€to€theÐ øH ÐPRC€for€a€military€end-use€also€will€be€subject€to€the€review€policy€stated€in€paragraph€(e)€of€thisÐ Ð  Ðsection.Ð ¨ø ÐÌ(f)€€In€this€section,€"military€end-Ô_Ôuseð?ðÔ_Ô€means:€€incorporation€into,€or€use€for€the€production,Ð X ¨ Ðdesign,€development,€maintenance,€operation,€installation,€or€deployment,€repair,€overhaul,€orÐ 0"€  Ðrefurbishing€of€items:€Ð $X" Ð(1)€Described€on€the€U.S.€Munitions€List€(Ô_ÔUSMLÔ_Ô)€(22€Ô_ÔCFRÔ_Ô€Part€121,€International€Traffic€inÐ à%0!$ ÐArms€Regulations);€Ð ¸'#& Ð(2)€Described€on€the€International€Munitions€List€(IML)€(as€set€out€on€the€Ô_ÔWassenaarÔ_ÔÐ )à$( ÐArrangement€website€at€http://www.wassenaar.org);€or€Ð h+¸&* Ð(3)€Listed€under€Ô_ÔECCNsÔ_Ô€ending€in€"A018"€on€the€Commerce€Control€List€(CCL)€in€SupplementÐ ° ÐNo.€1€to€Part€774€of€the€EAR.Ð ˆØ Ðà  àà ` àà ¸ àÌNote€to€paragraph€(f)€of€this€section:€€For€purposes€of€this€section:€ð ðproductionðð€meansÐ 8 ˆ Ðintegration,€assembling,€inspection,€or€testing;€ð ðdevelopmentðð€means€design,€and€includes€testingÐ  ` Ðand€building€of€prototypes;€ð ðmaintenanceðð€means€performing€work€to€bring€an€item€to€its€originalÐ è 8  Ðor€designed€capacity€and€efficiency€for€its€intended€purpose,€and€includes€testing,€measuring,Ð À  Ðadjusting,€inspecting,€replacing€parts,€restoring,€calibrating,€overhauling;€ð ðoperationðð€means€toÐ ˜è  Ðcause€to€function€as€intended;€ð ðinstallationðð€means€to€make€ready€for€use,€and€includesÐ pÀ Ðconnecting,€integrating,€incorporating,€loading€software,€and€testing;€ð ðdeploymentðð€meansÐ H˜ Ðplacing€in€battle€formation€or€appropriate€strategic€position.Ð  p ÐÌ9.€€Supplement€No.€2€to€Part€744€is€added€to€read€as€follows:Ð Ð  ÐÌÌSUPPLEMENT€NO.€2€TO€PART€744€„€LIST€OF€ITEMS€SUBJECT€TO€THE€MILITARYÐ X ¨ ÐEND-USE€LICENSE€Ô_ÔREQUIRMENTÔ_Ô€OF€ðð744.21Ð 0"€  ÐThe€following€items€are€subject€to€the€military€end-use€license€requirement€in€ðð744.21.€Ð $X" ЀÌ(1)€Category€1€„€Materials,€Chemicals,€Microorganisms,€and€ToxinsÐ ¸'#& ÐÌ(Ô_ÔiÔ_Ô)€1A290€€€€€Depleted€uranium€(any€uranium€containing€less€than€0.711%€of€the€isotope€U-235)Ð h+¸&* Ðin€shipments€of€more€than€1,000€kilograms€in€the€form€of€shielding€contained€in€X-ray€units,Ð ° Ðradiographic€exposure€or€Ô_ÔteletherapyÔ_Ô€devices,€radioactive€thermoelectric€generators,€or€packagingÐ ˆØ Ðfor€the€transportation€of€radioactive€materials.€€Ð `° ÐÌ(ii)€1B999€€€Equipment€controlled€by€1B999.e€specially€designed€for€the€production€of€structuralÐ  ` Ðcomposites,€fibers,€Ô_ÔprepregsÔ_Ô€and€preforms€controlled€in€Category€1,€n.e.s.Ð è 8  ÐÌ(iii)€1C990€€€€Fibrous€and€filamentary€materials,€not€controlled€by€1C010€or€1C210,€for€use€inÐ ˜è  ÐÔ_Ôð=ðcompositeð?ðÔ_Ô€structures€and€with€a€specific€modulus€of€3.18€x€106m€or€greater€and€a€specificÐ pÀ Ðtensile€strength€of€7.62€x€104m€or€greater.Ð H˜ ÐÌ(iv)€1C995€€€€Mixtures€not€controlled€by€1C350,€1C355€or€1C395€that€contain€chemicalsÐ øH Ðcontrolled€by€1C350€or€1C355€and€medical,€analytical,€diagnostic,€and€food€testing€kits€notÐ Ð  Ðcontrolled€by€1C350€or€1C395€that€contain€chemicals€controlled€by€1C350.d,€as€follows€(see€ListÐ ¨ø Ðof€Items€Controlled),€except€1C995.c€ð ðMedical,€analytical,€diagnostic,€and€food€testing€kits.ððÐ €Ð ÐÌ(v)€1C996€€€€€Hydraulic€fluids€containing€synthetic€hydrocarbon€oils,€having€all€the€followingÐ 0"€  Ðcharacteristics€(see€List€of€Items€Controlled).Ð $X" ÐÌ(vi)€1D999€€€€Specific€software€controlled€by€1D999.b€for€equipment€controlled€by€1B999.eÐ ¸'#& Ðspecially€designed€for€the€production€of€structural€composites,€fibers,€Ô_ÔprepregsÔ_Ô€and€preformsÐ )à$( Ðcontrolled€in€Category€1,€n.e.s.Ð h+¸&* Ї(vii)€1D993€€€€ð ðSoftwareðð€specifically€designed€for€the€ð ðdevelopmentðð,€ð ðproductionðð,€or€ð ðuseðð€ofÐ ° Ðequipment€or€materials€controlled€by€1C210.b,€or€1C990.Ð ˆØ ÐÌ(viii)€1E994€€€ð ðTechnologyðð€for€the€ð ðdevelopmentðð,€ð ðproductionðð,€or€ð ðuseðð€of€fibrous€andÐ 8 ˆ Ðfilamentary€materials€controlled€by€1C990.Ð  ` ÐÌ(2)€Category€2€„€Materials€ProcessingÐ À  ÐÌ(Ô_ÔiÔ_Ô)€€2A991€€€€Bearings€and€bearing€systems€not€controlled€by€2A001.Ð pÀ ÐÌ(ii)€€2B991€€€€€Limited€to€machine€tools€controlled€under€2B991€having€ð ðpositioning€accuraciesðð,Ð  p Ðwith€all€compensations€available,€better€than€0.010€mm€along€any€linear€axis;€and€machine€toolsÐ øH Ðhaving€the€characteristic€of€one€or€more€contouring€ð ðtilting€spindlesðð€controlled€by€2B991.d.1.a.Ð Ð  ÐÌ(iii)€€2B992€€€€Non-ð ðnumerically€controlled€machine€tools€for€generating€optical€quality€surfaces,Ð €Ð Ðand€specially€designed€components€therefor.Ð X ¨ ÐÌ(iv)€€2B993€€€Limited€to€gear€making€and/or€finishing€machinery€not€controlled€by€2B003€capableÐ $X" Ðof€producing€gears€to€a€quality€level€of€better€than€Ô_ÔAGMAÔ_Ô€12.Ð à%0!$ ЀÌ(v)€€€2B996€€€€Dimensional€inspection€or€measuring€systems€or€equipment€not€controlled€byÐ )à$( Ð2B006.Ð h+¸&* Ї(3)€Category€3€„€Electronics€Design,€Development€and€ProductionÐ ° ÐÌ(Ô_ÔiÔ_Ô)€€3A292€€€€€Oscilloscopes€and€transient€recorders€other€than€those€controlled€by€3A002.a.5,€andÐ `° Ðspecially€designed€components€therefor.Ð 8 ˆ ÐÌ(ii)€€3A999€€€€€Limited€to€items€controlled€by€3A999.c.Ð è 8  ÐÌ(iii)€€3B991€€€€Equipment€not€controlled€by€3B001€for€the€manufacture€of€electronic€componentsÐ ˜è  Ðand€materials,€and€specially€designed€components€and€accessories€therefor.Ð pÀ ÐÌ(iv)€€3B992€€€€€Equipment€not€controlled€by€3B002€for€the€inspection€or€testing€of€electronicÐ  p Ðcomponents€and€materials,€and€specially€designed€components€and€accessories€therefor.Ð øH ÐÌ(v)€€3D991€€€€€ð ðSoftware€specially€designed€for€the€ð ðdevelopmentðð,€ð ðproductionðð,€or€ð ðuseðð€ofÐ ¨ø Ðelectronic€devices€or€components€controlled€by€3A991,€general€purpose€electronic€equipmentÐ €Ð Ðcontrolled€by€3A992,€or€manufacturing€and€test€equipment€controlled€by€3B991€and€3B992.Ð X ¨ ÐÌ(vi)€€3E292€€€ð ðTechnologyðð€according€to€the€General€Technology€Note€for€the€ð ðdevelopmentðð,Ð $X" Ðð ðproductionðð,€or€ð ðuseðð€of€equipment€controlled€by€3A292.€€Ð à%0!$ ÐÌ(vii)€€3E991€€€ð ðTechnologyðð€for€the€ð ðdevelopmentðð,€ð ðproductionðð,€or€ð ðuseðð€of€electronic€devicesÐ )à$( Ðor€components€controlled€by€3A991,€general€purpose€electronic€equipment€controlled€by€3A992,Ð h+¸&* Ðor€manufacturing€and€test€equipment€controlled€by€3B991€or€3B992.Ð ° ÐÌ(4)€Category€4€-€ComputersÐ `° ÐÌ(Ô_ÔiÔ_Ô)€4A994€€€€€€Limited€to€computers€not€controlled€by€4A003,€with€an€Adjusted€Peak€PerformanceÐ  ` Ð(ð ðAPPðð)€exceeding€0.1€Weighted€Ô_ÔTeraFLOPSÔ_Ô€(€Ô_ÔWTÔ_Ô).Ð è 8  ÐÌ(ii)€4D993€€€€€ð ðProgramðð€proof€and€validation€ð ðsoftwareðð,€ð ðsoftwareðð€allowing€the€automaticÐ ˜è  Ðgeneration€of€ð ðsource€codesðð,€and€operating€system€ð ðsoftwareðð€not€controlled€by€4D003€that€areÐ pÀ Ðspecially€designed€for€real€time€processing€equipment.Ð H˜ ÐÌ(iii)€4D994€€€€€ð ðSoftwareðð€specially€designed€or€modified€for€the€ð ðdevelopmentðð,€ð ðproductionðð€orÐ øH Ðð ðuseðð€of€equipment€controlled€by€4A101,€4A994€with€an€Adjusted€Peak€Performance€(ð ðAPPðð)Ð Ð  Ðexceeding€0.1€Weighted€Ô_ÔTeraFLOPSÔ_Ô€(Ô_ÔWTÔ_Ô),€4B994€and€materials€controlled€by€4C994.Ð ¨ø ÐÌ(iv)€4E992€€€€ð ðTechnologyðð€for€the€ð ðdevelopmentðð,€ð ðproductionðð,€or€ð ðuseðð€of€equipmentÐ X ¨ Ðcontrolled€by€4A994,€as€described€in€this€Supplement€No.€2€to€Part€744,€and€4B994,€materialsÐ 0"€  Ðcontrolled€by€4C994,€or€ð ðsoftwareðð€controlled€by€4D993€or€4D994.Ð $X" ÐÌ(5)€Category€5€„€(Part€1)€TelecommunicationsÐ ¸'#& ÐÌ(Ô_ÔiÔ_Ô)€€5A991€€€€€€Limited€to€items€controlled€by€5A991.a.,€5A991.b.5.,€5A991.b.7.€and€5A991.f.Ð h+¸&* Ї(ii)€€5B991€€€€€Telecommunications€test€equipment,€n.e.s.Ð ° ÐÌ(iii)€€5C991€€€€Preforms€of€glass€or€of€any€other€material€optimized€for€the€manufacture€of€opticalÐ `° Ðfibers€controlled€by€5A991.Ð 8 ˆ ÐÌ(iv)€€5D991€€€€ð ðSoftwareðð€specially€designed€or€modified€for€the€ð ðdevelopmentðð,€ð ðproduction,€orÐ è 8  Ðð ðuseðð€of€equipment€controlled€by€5A991€and€5B991.Ð À  ÐÌ(v)€€5E991€€€€€ð ðTechnologyðð€for€the€ð ðdevelopmentðð,€ð ðproductionðð€or€ð ðuseðð€of€€equipmentÐ pÀ Ðcontrolled€by€5A991€or€5B991,€or€ð ðsoftwareðð€controlled€by€5D991,€and€other€ð ðtechnologiesðð€asÐ H˜ Ðfollows€(see€List€of€Items€Controlled).Ð  p ÐÌ(6)€Category€5€„€(Part€2)€Information€Security€Ð Ð  ÐÌ(Ô_ÔiÔ_Ô)€€5A992€€€€€Equipment€not€controlled€by€5A002,€except€mass€market€encryption€commoditiesÐ €Ð Ðand€software€described€in€ðððð742.15(b)(1)(Ô_ÔiÔ_Ô)€and€742.15(b)(2);€certain€ð ðshort-range€wirelessððÐ X ¨ Ðcommodities€and€software€described€in€ðð742.15(b)(3)(ii);€and€commodities€and€software€withÐ 0"€  Ðlimited€cryptographic€functionally€described€in€ðð742.15(b)(3)(iii).Ð $X" ÐÌ(ii)€€5D992€€€ð ðInformation€Securityðð€ð ðsoftwareðð€not€controlled€by€5D002,€except€mass€marketÐ ¸'#& Ðencryption€commodities€and€software€described€in€ðððð742.15(b)(1)(Ô_ÔiÔ_Ô)€and€742.15(b)(2);€certainÐ )à$( Ðð ðshort-range€wirelessðð€commodities€and€software€described€in€ðð742.15(b)(3)(ii);€andÐ h+¸&* Ðcommodities€and€software€with€limited€cryptographic€functionality€described€inÐ ° Ððð742.15(b)(3)(iii).Ð ˆØ ÐÌ(iii)€5E992€€€ð ðInformation€Securityðð€ð ðtechnologyðð,€not€controlled€by€5E002.Ð 8 ˆ ÐÌ(7)€Category€6€„€Sensors€and€LasersÐ è 8  ÐÌ(Ô_ÔiÔ_Ô)€€€6A995€€€ð ðLasersðð,€not€controlled€by€6A005€or€6A205.Ð ˜è  ÐÌ€(ii)€€6C992€€€Optical€sensing€fibers€not€controlled€by€6A002.d.3€which€are€modified€structurallyÐ H˜ Ðto€have€a€ð ðbeat€lengthðð€of€less€than€500€mm€(high€birefringence)€or€optical€sensor€materials€notÐ  p Ðdescribed€in€6C002.b€and€having€a€zinc€content€of€equal€to€or€more€than€6%€by€mole€fraction.Ð øH ÐÌ(8)€Category€7€„€Navigation€and€AvionicsÐ ¨ø ÐÌ(Ô_ÔiÔ_Ô)€€7A994€€€€€Other€navigation€direction€finding€equipment,€airborne€communication€equipment,Ð X ¨ Ðall€aircraft€inertial€navigation€systems€not€controlled€under€7A003€or€7A103,€and€other€avionicÐ 0"€  Ðequipment,€including€parts€and€components,€n.e.s.Ð $X" ÐÌ(ii)€€7B994€€€€Other€equipment€for€the€test,€inspection,€or€ð ðproductionðð€of€navigation€and€avionicsÐ ¸'#& Ðequipment.Ð )à$( ÐÐ h+¸&* Ð(iii)€7D994€ð ðSoftwareðð,€n.e.s.,€for€the€ð ðdevelopmentðð,€ð ðproductionðð,€or€ð ðuseðð€of€navigation,Ð ° Ðairborne€communication€and€other€avionics.Ð ˆØ ÐÌ(iv)€7E994€ð ðTechnologyðð,€n.e.s.,€for€the€ð ðdevelopmentðð,€ð ðproductionðð,€or€ð ðuseðð€of€navigation,Ð 8 ˆ Ðairborne€communication,€and€other€avionics€equipment.Ð  ` ÐÌ(9)€Category€8€-€MarineÐ À  ÐÌ(Ô_ÔiÔ_Ô)€€8A992€€€€€Underwater€systems€or€equipment,€not€controlled€by€8A002,€and€specially€designedÐ pÀ Ðparts€therefor.Ð H˜ ÐÌ(ii)€8D992€€€€€ð ðSoftwareðð€specially€designed€or€modified€for€the€ð ðdevelopmentðð,€ð ðproductionðð€orÐ øH Ðð ðuseðð€of€equipment€controlled€by€8A992.Ð Ð  ÐÌ(iii)€8E992€€€€ð ðTechnologyðð€for€the€ð ðdevelopmentðð,€ð ðproductionðð€or€ð ðuseðð€of€equipmentÐ €Ð Ðcontrolled€by€8A992.Ð X ¨ ÐÌ(10)€Category€9€„€Propulsion€Systems,€Space€Vehicles€and€Related€EquipmentÐ $X" ÐÌ(Ô_ÔiÔ_Ô)€€9A991€€€€ð ðAircraftðð,€n.e.s.,€and€gas€turbine€engines€not€controlled€by€9A001€or€9A101€andÐ ¸'#& Ðparts€and€components,€n.e.s.Ð )à$( ÐÐ h+¸&* Ð(ii)€€9B990€€€€€Vibration€test€equipment€and€specially€designed€parts€and€components,€n.e.s.Ð ° ÐÌ(iii)€€9D990€€€€€ð ðSoftwareðð,€n.e.s.,€for€the€ð ðdevelopmentðð€or€ð ðproductionðð€of€equipment€controlledÐ `° Ðby€9A990€or€9B990.Ð 8 ˆ ÐÌ(iv)€€9D991€€€€€ð ðSoftwareðð,€for€the€ð ðdevelopmentðð€or€productionðð€of€equipment€controlled€byÐ è 8  Ð9A991€or€9B991.Ð À  ÐÌ(v)€€9E990€€€€€ð ðTechnologyðð,€n.e.s.,€for€the€ð ðdevelopmentðð€or€ð ðproductionðð€or€ð ðuseðð€of€equipmentÐ pÀ Ðcontrolled€by€9A990€or€9B990.Ð H˜ ÐÌ(vi)€€9E991€€€€€ð ðTechnologyðð,€for€the€ð ðdevelopmentðð,€ð ðproductionðð€or€ð ðuseðð€of€equipmentÐ øH Ðcontrolled€by€9A991€or€9B991.Ð Ð  ÐÌÌPART€748€„€[AMENDED]Ð X ¨ ÐÌÌÌà  à10.€à ` àThe€authority€citation€for€15€Ô_ÔCFRÔ_Ô€Part€748€continues€to€read€as€follows:€Ð ¸'#& Ðà  àà ` àAuthority:€50€U.S.C.€app.€2401€et€seq.;€50€U.S.C.€1701€et€seq.;€E.O.€13026,€61€FRÐ )à$( Ð58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€E.O.€13222,€66€FR€44025,€3€Ô_ÔCFRÔ_Ô,€2001€Comp.,€p.€783;€Ð h+¸&* ÐNotice€of€August€2,€2005,€70€FR€45273€(August€5,€2005).€€€Ð ° ÐÌà  à11.€à ` àSection€748.9€is€amended:Ð `° Ðà  àà ` àa.€By€revising€paragraph€(b)(1)€introductory€text;Ð 8 ˆ Ðà  àb.€By€revising€paragraph€(b)(2)€introductory€text€before€the€list€of€countries;Ð  ` Ðà  àc.€By€revising€paragraphs€(b)(2)(Ô_ÔiÔ_Ô)€and€(b)(2)(ii);€andÐ è 8  Ðà  àd.€By€revising€paragraph€(c)(1).Ð À  ÐThe€revisions€read€as€follows:Ð ˜è  Ѐ€€€€€€€€Ð pÀ ÐÌðð748.9€Support€Documents€for€License€Applications.Ð  p ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*Ð Ð  ÐÌà  à(b)€*€€€€€*€€€€€*Ð €Ð Ðà  à(1)€€Does€your€transaction€involve€items€controlled€for€national€security€reasons?€€DoesÐ X ¨ Ðyour€transaction€involve€items€destined€for€the€Peopleððs€Republic€of€China€(PRC)?Ð 0"€  Ѐ€*€€€€€*€€€€€*€€€€*€€*Ð $X" Ðà  à(2)€€Does€your€transaction€involve€items€controlled€for€national€security€reasons€destinedÐ à%0!$ Ðfor€one€of€the€following€countries?€(This€applies€only€to€those€overseas€destinations€specificallyÐ ¸'#& Ðlisted.)€€If€your€item€is€destined€for€the€PRC,€does€your€transaction€involve€items€that€require€aÐ )à$( Ðlicense€to€the€PRC€for€any€reason?€€Ð h+¸&* ЇÌ*€€€€€*€€€€€*€€€€*€€€*Ð ˆØ Ðà  à(Ô_ÔiÔ_Ô)€€If€yes,€your€transaction€may€require€an€Import€or€End-User€Certificate.€€If€yourÐ `° Ðtransaction€involves€items€destined€for€the€PRC€that€are€controlled€to€the€PRC€for€any€reason,Ð 8 ˆ Ðyour€transaction€may€require€a€PRC€End-User€Certificate.€€Note€that€if€the€destination€is€theÐ  ` ÐPRC,€a€Statement€of€Ultimate€Consignee€and€Purchaser€may€be€substituted€for€a€PRC€End-UserÐ è 8  ÐCertificate€when€the€item€to€be€exported€(i.e.,€replacement€parts€and€sub-assemblies)€is€forÐ À  Ðservicing€previously€exported€items€and€is€valued€at€$75,000€or€less.Ð ˜è  Ðà  à(ii)€€If€no,€your€transaction€may€require€a€Statement€by€Ultimate€Consignee€andÐ pÀ ÐPurchaser.€€Read€the€remainder€of€this€section,€then€proceed€to€ðð748.11€of€the€EAR.Ð H˜ Ðà  à(c)€License€Applications€Requiring€Support€Documents.€*€€€€€*€€€€€*Ð  p Ðà  à(1)€License€applications€supported€by€an€Import€or€End-User€Certificate.€€You€mayÐ øH Ðsubmit€your€license€application€upon€receipt€of€a€facsimile€or€other€legible€copy€of€the€Import€orÐ Ð  ÐEnd-User€Certificate,€provided€that€no€shipment€is€made€against€any€license€issued€based€uponÐ ¨ø Ðthe€Import€or€End-User€Certificate€prior€to€receipt€and€retention€of€the€original€statement€by€theÐ €Ð Ðapplicant.Ð X ¨ Ðà  à*€€€€€*€€€€€*€€€€€*€€€€€*Ð 0"€  Ðà  à12.€à ` àSection€748.10€is€amended:Ð $X" Ðà  àà ` àa.€By€revising€the€fourth€sentence€in€paragraph€(a);Ð à%0!$ Ðà  àà ` àb.€By€Ô_ÔredesignatingÔ_Ô€paragraph€(b)(4)€as€paragraph€(b)(5)€and€by€adding€a€newÐ ¸'#& Ðparagraph€€(b)(4)€and€revising€newly€designated€paragraph€(b)(5);Ð )à$( Ðà  àà ` àc.€By€revising€paragraph€(c)(1);Ð h+¸&* Ðà  àà ` àd.€By€revising€paragraph€(c)€(3)€introductory€text;€andÐ ° Ѐ€€€€€€€e.€By€revising€paragraph€(g).Ð ˆØ Ѐ€€€€€€€The€additions€and€revisions€read€as€follows:Ð `° ÐÌðð748.10€Import€and€End-User€Certificates.Ð  ` Ðà  à(a)€Scope.€*€€€€€*€€€€€*€€This€section€describes€exceptions€and€relationships€true€for€bothÐ è 8  ÐImport€and€End-User€Certificates,€and€applies€only€to€transactions€involving€national€securityÐ À  Ðcontrolled€items€destined€for€one€of€the€countries€identified€in€ðð748.9(b)(2)€of€this€part,€or,€in€theÐ ˜è  Ðcase€of€the€PRC,€for€all€items€that€require€a€license€to€the€PRC€for€any€reason.Ð pÀ Ðà  à(b)€*€€€*€€€*Ð H˜ Ðà  à(4)€Your€transaction€involves€an€export€to€the€Peopleððs€Republic€of€China€(PRC)€ofÐ  p Ðcommodities€and€software€classified€in€a€single€entry€on€the€CCL,€the€total€value€of€whichÐ øH Ðexceeds€$5,000.€€Note€that€this€$5,000€threshold€does€not€apply€to€exports€to€the€PRC€ofÐ Ð  Ðcomputers,€which€are€subject€to€the€provisions€of€ðð748.10(b)(3).Ð ¨ø Ðà  à(Ô_ÔiÔ_Ô)€Your€license€application€may€list€several€separate€CCL€entries.€€If€the€total€value€ofÐ €Ð Ðentries€that€require€a€license€to€the€PRC€for€any€reason€on€the€CCL€on€a€license€applicationÐ X ¨ Ðexceeds€$5,000,€then€a€PRC€End-User€Certificate€covering€all€controlled€items€on€your€licenseÐ 0"€  Ðapplication€must€be€obtained;€Ð $X" Ðà  à(ii)€You€may€be€specifically€requested€by€BIS€to€obtain€an€End-User€Certificate€for€aÐ à%0!$ Ðtransaction€valued€under€$5,000€or€for€a€transaction€that€requires€a€license€to€the€PRC€for€reasonsÐ ¸'#& Ðin€the€EAR€other€than€those€listed€on€the€CCL.€€Ð )à$( Ðà  à(5)€Your€transaction€involves€a€destination€other€than€the€PRC€and€your€licenseÐ h+¸&* Ðapplication€involves€the€export€of€commodities€and€software€classified€in€a€single€entry€on€theÐ ° ÐCCL,€the€total€value€of€which€exceeds€$5,000.Ð ˆØ Ðà  à(Ô_ÔiÔ_Ô)€Your€license€application€may€list€several€separate€CCL€entries.€If€any€entry€controlledÐ `° Ðfor€national€security€reasons€exceeds€$5,000,€then€an€Import€Certificate€must€be€obtainedÐ 8 ˆ Ðcovering€all€items€controlled€for€national€security€reasons€on€your€license€application;Ð  ` Ðà  à(ii)€If€your€license€application€involves€a€lesser€transaction€that€is€part€of€a€larger€order€forÐ è 8  Ðitems€controlled€for€national€security€reasons€in€a€single€Ô_ÔECCNÔ_Ô€exceeding€$5,000,€an€ImportÐ À  ÐCertificate€must€be€obtained.€Ð ˜è  Ðà  à(iii)€You€may€be€specifically€requested€by€BIS€to€obtain€an€Import€Certificate€for€aÐ pÀ Ðtransaction€valued€under€$5,000.Ð H˜ Ðà  à(c)€How€to€obtain€an€Import€or€End-User€Certificate.€€(1)€Applicants€must€request€that€theÐ  p Ðimporter€(e.g.,€ultimate€consignee€or€purchaser)€obtain€the€Import€or€End-User€Certificate,€andÐ øH Ðthat€it€be€issued€covering€only€those€items€that€are€controlled€for€national€security€reasons.€€NoteÐ Ð  Ðthat€in€the€case€of€the€PRC,€applicants€must€request€that€the€importer€obtain€an€End-UserÐ ¨ø ÐCertificate€for€all€items€on€a€license€application€that€are€controlled€to€the€PRC€for€any€reason€onÐ €Ð Ðthe€CCL.€Importers€should€not€be€requested,€except€in€the€case€of€the€PRC,€to€obtain€an€Import€orÐ X ¨ ÐEnd-User€Certificate€for€items€that€are€controlled€for€reasons€other€than€national€security.€Ð 0"€  ÐApplicants€must€obtain€original€Import€or€End-User€Certificates€from€importers.€Ð $X" Ðà  à*€€€€€*€€€€€*€€€*€€€€*Ð à%0!$ Ðà  à(3)€If€your€transaction€requires€the€support€of€a€PRC€End-User€Certificate,€you€mustÐ ¸'#& Ðensure€that€the€following€information€is€included€on€the€PRC€End-User€Certificate€signed€by€anÐ )à$( Ðofficial€of€the€Department€of€Scientific€and€Technological€Development€and€Trade€inÐ h+¸&* ÐTechnology€of€the€PRC€Ministry€of€Commerce€(Ô_ÔMOFCOMÔ_Ô),€with€Ô_ÔMOFCOMÔ_Ôððs€seal€affixed€to€it:€Ð ° ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*Ð `° Ѐ€€€€€€€€€€€(g)€Submission€of€Import€and€End-User€Certificates.€€Certificates€must€be€retained€on€fileÐ 8 ˆ Ðby€the€applicant€in€accordance€with€the€Ô_ÔrecordkeepingÔ_Ô€provisions€of€part€762€of€the€EAR,€andÐ  ` Ðshould€not€be€submitted€with€the€license€application.€€For€more€information€on€what€Import€andÐ è 8  ÐEnd-user€Certificate€information€must€be€included€in€license€applications,€refer€to€ðð748.9(c)€ofÐ À  Ðthe€EAR.€€In€addition,€as€set€forth€in€ðð748.12(e),€to€assist€in€license€reviews,€BIS€will€requireÐ ˜è  Ðapplicants,€on€a€random€basis,€to€submit€specific€original€Import€and€End-user€Certificates.€€Ð pÀ Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð H˜ Ðà  àðð748.12€[Amended]Ð  p Ѐ€€€€€€€13.€à ` àSection€748.12€is€amended€by€removing€and€reserving€paragraph€(a).€Ð øH Ѐ€€€€€€€14.€à ` àSupplement€No.€4€to€Part€748,€is€amended€by€revising€the€entry€for€ð ðChina,Ð Ð  ÐPeopleððs€Republic€ofðð,€to€read€as€follows:Ð ¨ø ÐSupplement€No.€4€to€Part€748€-€Authorities€Administering€Import€Certificate/DeliveryÐ €Ð ÐVerification€(IC/Ô_ÔDVÔ_Ô)€and€End-Use€Certificate€Systems€in€Foreign€Countries.Ð X ¨ ÐCountry€à ` àà ¸ àà  àIC/Ô_ÔDVÔ_Ô€Authorities€à  àà p àà È àà  àSystem€AdministeredÐ 0"€  Ð*€€€*€€€*€€€€€*€€€€€*Ð $X" ÐChina,à  àà ` àà ¸ àà  àExport€Control€Division€Ià p àà È àà  àPRCÐ à%0!$ ÐPeopleððs€à ` àà ¸ àà  àDepartment€of€S&Tà  àà p àà È àà  àEnd-UserÐ ¸'#& ÐRepublic€ofà ` àà ¸ àà  àNo.€2€Dong€Chang€An€Streetà p àà È àà  àCertificateÐ )à$( Ðà  àà ` àà ¸ àà  àBeijingÐ h+¸&* Ðà  àà ` àà ¸ àà  àPhone:€8610-6519-7366Ð ° Ðà  àà ` àà ¸ àà  àFax:€8610-6519-7926Ð ˆØ Ð*€€€*€€€*€€€€€*€€€€€*€Ð `° Ѐ€€€€€€€15.à ` àSection€748.15€is€added€to€read€as€follows:Ð 8 ˆ Ððð748.15€AUTHORIZATION€VALIDATED€END-USER€(Ô_ÔVEUÔ_Ô).Ð  ` ÐAuthorization€Validated€End-User€(Ô_ÔVEUÔ_Ô)€permits€the€export,€Ô_ÔreexportÔ_Ô,€and€transfer€to€validatedÐ è 8  Ðend-users€of€any€eligible€items€that€will€be€used€in€an€eligible€destination.€€Validated€end-usersÐ À  Ðare€those€who€have€been€approved€in€advance€pursuant€to€the€requirements€of€this€section.€€To€beÐ ˜è  Ðeligible€for€authorization€Ô_ÔVEUÔ_Ô,€exporters,€Ô_ÔreexportersÔ_Ô,€and€potential€validated€end-users€mustÐ pÀ Ðadhere€to€the€conditions€and€restrictions€set€forth€in€paragraphs€(a)€through€(f)€of€this€section.€€Ð H˜ ÐÌ€€€€€€€€(a)à ` àEligible€end-users.€€The€only€end-users€to€whom€eligible€items€may€be€exported,Ð øH ÐÔ_ÔreexportedÔ_Ô,€or€transferred€under€Ô_ÔVEUÔ_Ô€are€those€validated€end-users€identified€in€Supplement€No.Ð Ð  Ð7€to€Part€748.€Ð ¨ø Ѐ€€€€€€€(1)à ` àIn€evaluating€an€end-user€for€eligibility€under€this€authorization,€BIS,€inÐ €Ð Ðconsultation€with€the€Departments€of€State,€Energy,€and€Defense€and€other€agencies,€asÐ X ¨ Ðappropriate,€will€consider€a€range€of€information,€including€such€factors€as:€€the€Ô_Ôpartyð$ðsÔ_Ô€recordÐ 0"€  Ðof€exclusive€engagement€in€civil€end-use€activities;€the€Ô_Ôpartyð$ðsÔ_Ô€compliance€with€U.S.€exportÐ $X" Ðcontrols;€the€Ô_Ôpartyð$ðsÔ_Ô€capability€to€comply€with€the€requirements€of€authorization€Ô_ÔVEUÔ_Ô;€theÐ à%0!$ ÐÔ_Ôpartyð$ðsÔ_Ô€agreement€to€on-site€compliance€reviews€by€representatives€of€the€United€StatesÐ ¸'#& ÐGovernment;€and€the€Ô_Ôpartyð$ðsÔ_Ô€relationships€with€Ô_ÔU.SÔ_Ô€and€foreign€companies.€€In€addition,€whenÐ )à$( Ðevaluating€the€eligibility€of€an€end-user,€agencies€will€consider€the€status€of€export€controls€andÐ h+¸&* Ðthe€support€and€adherence€to€multilateral€export€control€regimes€of€the€government€of€the€eligibleÐ ° Ðdestination.€Ð ˆØ Ѐ€€€€€€€(2)€à ` àRequests€for€authorization€must€be€submitted€in€the€form€of€an€advisory€opinionÐ `° Ðrequest,€as€described€in€ðð748.3(c),€and€should€include€a€list€of€items,€identified€by€Export€ControlÐ 8 ˆ ÐClassification€Number€(Ô_ÔECCNÔ_Ô),€that€exporters€or€Ô_ÔreexportersÔ_Ô€intend€to€export,€Ô_ÔreexportÔ_Ô€orÐ  ` Ðtransfer€to€an€eligible€end-user.€€In€addition€to€the€information€described€in€ðð748.3,€the€itemsÐ è 8  Ðidentified€by€Ô_ÔECCNÔ_Ô€should€be€specified€to€the€extent€of€the€applicable€subparagraph€of€theÐ À  ÐÔ_ÔECCNÔ_Ô€entry.€€The€request€also€should€include€a€description€of€how€each€item€would€be€used€byÐ ˜è  Ðthe€eligible€end-user€in€an€eligible€destination.€Requests€for€authorization€will€be€accepted€fromÐ pÀ Ðexporters,€Ô_ÔreexportersÔ_Ô€and€end-users.€Submit€the€request€to:€Ð H˜ Ѐ€€€€€€€The€Office€of€Exporter€Services,€Bureau€of€Industry€and€SecurityÐ  p Ѐ€€€€€€€U.S.€Department€of€CommerceÐ øH Ѐ€€€€€€€14th€Street€and€Pennsylvania€Avenue,€NW,€Room€2075,Ð Ð  ÐWashington,€DC€€20230;€or€toÐ ¨ø ÐÌ€€€€€€€€The€Office€of€Exporter€Services,€Bureau€of€Industry€and€SecurityÐ X ¨ ÐU.S.€Department€of€CommerceÐ 0"€  ÐP.O.€Box€273,Ð $X" ÐWashington,€DC€20044.€Ð à%0!$ ÐMark€the€package€sent€to€either€address€Ô_Ôð=ðRequestÔ_Ô€for€Authorization€Validated€End-Ô_ÔUserð?ðÔ_ÔÐ ¸'#& Ѐ€Ð )à$( Ѐ€€€€€€€(3)€à ` àExports,€Ô_ÔreexportsÔ_Ô,€or€transfers€made€under€authorization€Ô_ÔVEUÔ_Ô€may€only€be€madeÐ h+¸&* Ðto€an€end-user€listed€in€Supplement€No.€7€to€Part€748€if€the€items€will€be€consigned€to€and€for€useÐ ° Ðby€the€validated€end-user.Ð ˆØ ÐÌ€€€€(b)€Eligible€destinations.€Authorization€Ô_ÔVEUÔ_Ô€may€be€used€for€the€following€destinations:Ð 8 ˆ Ѐ€€€€€€€(1)€The€Ô_ÔPeopleððsÔ_Ô€Republic€of€China.Ð  ` Ѐ€€€€€€€(2)€[RESERVED]€Ð è 8  Ðà  àÌ€€€€€€€€(c)€Item€restrictions.€€(1)€Items€controlled€under€the€EAR€for€missile€technology€(MT)€andÐ ˜è  Ðcrime€control€(CC)€reasons€may€not€be€exported€or€Ô_ÔreexportedÔ_Ô€under€this€authorization.€Ð pÀ Ѐ€€€€€€€Ð H˜ Ѐ€€€€€€€(d)€End-use€restrictions.€€Items€obtained€under€authorization€Ô_ÔVEUÔ_Ô€may€not€be€used€for€anyÐ  p Ðactivities€described€in€part€744.€€Eligible€end-users€who€obtain€items€under€Ô_ÔVEUÔ_Ô€may€only:Ð øH Ѐ€€€€€€€(1)€Use€such€items€at€the€end-Ô_Ôuserð$ðsÔ_Ô€own€facility€located€in€an€eligible€destination€or€at€aÐ Ð  Ðfacility€located€in€an€eligible€destination€over€which€the€end-user€demonstrates€effective€control;€Ð ¨ø Ð(2)€Consume€such€items€during€use;€orÐ €Ð Ð(3)€Transfer€or€Ô_ÔreexportÔ_Ô€such€items€only€as€authorized€by€BIS.Ð X ¨ ÐÌ(e)€Certification€and€Ô_ÔrecordkeepingÔ_Ô.€Prior€to€the€initial€export€or€Ô_ÔreexportÔ_Ô€under€authorizationÐ $X" ÐÔ_ÔVEUÔ_Ô,€exporters€or€Ô_ÔreexportersÔ_Ô€must€receive€and€retain€end-use€certifications€from€eligibleÐ à%0!$ Ðend-users€stating€that:€Ð ¸'#& ÐÌ€€€€€€€€€(1)€€They€are€informed€of€and€will€abide€by€all€authorization€Ô_ÔVEUÔ_Ô€end-use€restrictions;€Ð h+¸&* Ѐ€€€€€€€(2)€They€have€procedures€in€place€to€ensure€compliance€with€authorization€Ô_ÔVEUÔ_Ô€destinationÐ ° Ðand€end-use€restrictions;Ð ˆØ Ѐ€€€€€€€(3)€They€will€not€use€items€obtained€under€authorization€Ô_ÔVEUÔ_Ô€in€any€of€the€prohibitedÐ `° Ðactivities€described€in€part€744€of€the€EAR;€andÐ 8 ˆ Ðà  à(4)€They€agree€to€allow€on-site€visits€by€U.S.€Government€officials€to€verify€theÐ  ` Ðend-Ô_Ôusersð$ðÔ_Ô€compliance€with€the€conditions€of€authorization€Ô_ÔVEUÔ_Ô.Ð è 8  ÐÌNote€to€paragraph€(e)€of€this€section:€€These€certifications€must€be€retained€by€exporters€orÐ ˜è  ÐÔ_ÔreexportersÔ_Ô€in€accordance€with€the€Ô_ÔrecordkeepingÔ_Ô€requirements€set€forth€in€part€762€of€the€EAR.Ð pÀ ÐÌ(f)€Reporting€and€auditing€requirements.€€Ð  p Ðà  à(1)(Ô_ÔiÔ_Ô)€Reports.€€Exporters€and€Ô_ÔreexportersÔ_Ô€who€use€authorization€Ô_ÔVEUÔ_Ô€are€required€toÐ øH Ðsubmit€annual€reports€to€BIS.€€These€reports€must€include,€for€each€validated€end-user€to€whomÐ Ð  Ðthe€exporter€or€Ô_ÔreexporterÔ_Ô€exported€or€Ô_ÔreexportedÔ_Ô€eligible€items:€€Ð ¨ø Ð(A)€The€name€and€address€of€any€validated€end-users€to€whom€the€exporters€or€Ô_ÔreexportersÔ_ÔÐ €Ð Ðexported€or€Ô_ÔreexportedÔ_Ô€eligible€items;€Ð X ¨ Ð(B)€The€eligible€destination€to€which€the€items€were€exported€or€Ô_ÔreexportedÔ_Ô;€Ð 0"€  Ð(C)€The€quantity€of€such€items;€Ð $X" Ð(D)€The€value€of€such€items;€and€Ð à%0!$ Ð(E)€The€Ô_ÔECCNÔ_Ô(s)€of€such€items.€€Ð ¸'#& Ð(ii)€Reports€are€due€by€February€15€of€each€year,€and€must€cover€the€period€of€January€1€throughÐ )à$( ÐDecember€31€of€the€prior€year.€Packages€containing€such€reports€should€be€markedÐ h+¸&* ÐÔ_Ôð=ðAuthorizationÔ_Ô€Validated€End-User€Ô_ÔReports.ð?ðÔ_Ô€Reports€should€be€sent€to:Ð ° ÐOffice€of€Export€Enforcement,€Bureau€of€Industry€and€Security,Ð ˆØ ÐU.S.€Department€of€Commerce,€Ð `° Ð14th€Street€and€Constitution€Avenue,€Ô_ÔN.W.Ô_Ô,€Ð 8 ˆ ÐRoom€H-4520,€Ð  ` ÐWashington,€DC€20230.€Ð è 8  ÐÌ€€€€€€€€(2)€Audits.€Users€of€authorization€Ô_ÔVEUÔ_Ô€will€be€audited€on€a€routine€basis.€€Upon€request€byÐ ˜è  ÐBIS,€exporters,€Ô_ÔreexportersÔ_Ô,€and€validated€end-users€must€allow€inspection€of€records€or€on-siteÐ pÀ Ðcompliance€reviews.€€For€audit€purposes,€records,€including€information€identified€in€paragraphsÐ H˜ Ð(e),€(f)(1)€and€the€note€to€paragraph€(c)€of€this€section,€should€be€retained€in€accordance€with€theÐ  p ÐÔ_ÔrecordkeepingÔ_Ô€requirements€set€forth€in€part€762€of€the€EAR.€Ð øH ÐÌ12.€€Supplement€No.€7€to€Part€748€is€added€to€read€as€follows:Ð ¨ø ÐSUPPLEMENT€NO.7€TO€PART€748€Ô_ÔðEðAUTHORIZATIONÔ_Ô€VALIDATED€END-USER€(Ô_ÔVEUÔ_Ô):€Ð €Ð ÐLIST€OF€VALIDATED€END-USERS,€RESPECTIVE€ELIGIBLE€ITEMS€AND€ELIGIBLEÐ X ¨ ÐDESTINATIONSÐ 0"€  ÐÌValidated€End-Users,€Respective€Eligible€Items€and€Eligible€Destinations€for€Ð à%0!$ ÐÌExports€and€Ô_ÔReexportsÔ_Ô€Under€Ô_ÔAuthorizationVEUÔ_Ô€:Ð )à$( ÐÐ h+¸&* ÐCertified€End-Userà ¸ àà  àà h àEligible€Itemsà  àà p àà È àEligible€DestinationÐ ° ÐÌÌÌDATED:Ð  ` ÐÌÌÌÌMatthew€S.€Ô_ÔBormanÔ_ÔÐ H˜ ÐÌDeputy€Assistant€SecretaryÐ øH ÐÌ€€€for€Export€AdministrationÐ ¨ø ÐÌÌÌÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà  àÌ