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ÐÔ_ Ôin€the€EAR€to€ensure€that€the€terminology€used€to€describe€each€type€of€end„user/end„use€control€isÐ ° Ðconsistent,€to€the€fullest€extent€possible,€with€the€terminology€in€other€such€controls€in€the€EAR.€€TheÐ `° Ðamendments€in€this€rule€clarify€that€a€party€cannot€proceed€with€an€export,€reexport,€or€transfer€(in„Ð ` Ðcountry)€that€is€in€transit€at€the€time€the€party€is€informed€by€BIS€that€a€license€is€required€(in€accordanceÐ À  Ðwith€certain€end„user/end„use€controls€in€the€EAR),€unless€that€party€first€obtains€a€license€from€BISÐ p À Ðauthorizing€the€completion€of€the€transaction.€€These€changes€are€intended€to€enhance€the€ability€of€BISÐ  p  Ðto€stop€items€subject€to€the€EAR,€including€items€not€on€the€Commerce€Control€List,€from€beingÐ Ð  Ðexported,€reexported€or€transferred€(in„country)€when€there€is€an€unacceptable€risk€that€such€items€will€beÐ €Ð  Ðused€in,€or€diverted€to,€any€of€the€proliferation€activities€specified€in€certain€sections€of€the€EAR.€€€ThisÐ 0€  Ðrule€also€amends€the€EAR€by€revising€the€definition€of€the€term€ð ðtransferðð€and€certain€related€terms,€toÐ à0 Ðprovide€greater€clarity€regarding€these€provisions.€€BIS€published€these€amendments€in€proposed€form€inÐ à Ðthe€ò òFederal€Registeró ó€with€a€request€for€comments.€€Ð @ ÐÌDATES:€This€rule€is€effective:€November€18,€2008.€Ô‡!&ˆ“%%&ˆ“ÔÐ ¨ø ÐÌADDRESSES:€€Written€comments€on€this€rule€may€be€sent€to€the€Federal€Register€eRulemaking€Portal:Ð X ÐòòÔÿÔhttp://www.regulations.gov,óóÔÿÊ Ô€or€by€e„mail€to€òòÔÿÔpubliccomments@bis.doc.gov.óóÔÿ Ô€€€Include€RIN€0694„AD59€inÐ ¸  Ðthe€subject€line€of€the€message.€€Comments€may€be€submitted€by€mail€or€hand€delivery€to€TimothyÐ h!¸" ÐMooney,€Office€of€Exporter€Services,€Regulatory€Policy€Division,€Bureau€of€Industry€and€Security,€U.S.Ð #h$ ÐDepartment€of€Commerce,€14òòthóó€St.€&€Pennsylvania€Avenue,€NW.,€Room€H2705,€Washington,€DC€20230,Ð È$ & ÐATTN:€RIN€0694„AD59;€or€by€fax€to€(202)€482„3355.Ð x&È!( ÐÌSend€comments€regarding€the€collection€of€information€to€Ô#†&ˆ“%%!&ˆ“ #ÔÔ‡-&ˆ“%%&ˆ“ÔJasmeet€Seehra,Ô#†&ˆ“%%-&ˆ“#ÔÔ‡!&ˆ“%%&ˆ“Ô€Office€of€Management€andÐ Ø)(%, ÐBudget€(OMB),€by€e„mail€toòòóóÔ#†&ˆ“%%!&ˆ“î#ÔÔ‡-&ˆ“%%&ˆ“Ô€òòóóÔ4‚1Ý ÔÝ‚/ÍOÝÔÿÔòòÝ  ÝÔ5  Ôjseehra@omb.eop.gov,Ô6¤ÔÝ‚/ÍO¸ƒÝóóÔÿÔÝ  ÝÔ7Ý ªæÔÔ#†&ˆ“%%-&ˆ“~#ÔÔ‡!&ˆ“%%&ˆ“Ôòòóó€or€by€fax€to€(202)€395„7285;€and€to€the€RegulatoryÐ ˆ+Ø&. ÐPolicy€Division,€Bureau€of€Industry€and€Security,€U.S.€Department€of€Commerce,€14òòthóó€St.€&Ð ° ÐPennsylvania€Avenue,€NW.,€Room€H2705,€Washington,€DC€20230.Ð `° ÐÌFOR€FURTHER€INFORMATION€CONTACT:€Timothy€Mooney,€Office€of€Exporter€Services,€BureauÐ À  Ðof€Industry€and€Security,€U.S.€Department€of€Commerce;€by€telephone:€(202)€482„2440;€or€by€fax:€202„Ð p À Ð482„3355.Ð  p  ÐÌSUPPLEMENTARY€INFORMATIONÐ €Ð  ÐÌBackgroundà ` àà ¸ àà  àà h àà À àà  àà p àà È àÐ à0 ÐòòConforming€changes€to€certain€end„user/end„use€based€controls€in€the€EARÐ à ÐóóPart€744€of€the€EAR€deals€with€the€end„user€and€end„use€based€control€policy€under€the€EAR.€€Ð @ ÐSection€744.3€prohibits€exports,€reexports€and€transfers€(in„country)€of€items€subject€to€the€EAR€toÐ ð@ Ðcertain€missile„related€end„uses.€€Section€744.4€prohibits€exports,€reexports€and€transfers€(in„country)€ofÐ  ð Ðitems€subject€to€the€EAR€to€certain€chemical€and€biological€proliferation€activities.€€Section€744.6Ð P  Ðprohibits€certain€activities€by€U.S.€persons€in€support€of€certain€nuclear,€missile,€chemical,€or€biologicalÐ P Ðend„uses.€€Section€744.2€prohibits€exports€and€reexports€of€items€subject€to€the€EAR€to€certain€nuclearÐ °  Ðproliferation€activities.€€This€rule€adds€transfer€(in„country)€to€the€scope€of€the€prohibition€set€forth€inÐ `!°" Ððð744.2€to€ensure€that€the€language€in€that€section€conforms€with€the€language€in€ðððð744.3,€744.4€andÐ #`$ Ð744.6.Ð À$ & ÐÌWithin€each€of€these€sections€of€part€744,€there€is€a€paragraph€(b)€that€includes€ð ðis€informedðð€provisionsÐ  (p#* Ðthat€set€out€the€requirements€of€what€persons€need€to€do€once€they€are€informed€by€BIS€that€theirÐ Ð) %, Ðtransactions€would€be€subject€to€the€prohibitions€set€forth€in€ðððð744.2,€744.3,€744.4€or€744.6.€€Prior€toÐ €+Ð&. Ðpublication€of€this€rule,€there€were€minor€differences€in€the€terminology€used€to€describe€the€end„Ð ° Ðuser/end„use€controls€in€each€of€these€sections.€€This€rule€amends€the€end„user/end„use€controls€in€theseÐ `° Ðsections€of€part€744€to€ensure€that€the€terminology€used€in€any€one€of€these€sections€conforms,€to€theÐ ` Ðfullest€extent€possible,€with€the€terminology€used€in€the€other€sections.€€These€changes€are€intended€toÐ À  Ðmake€the€end„user/end„use€controls€in€part€744€of€the€EAR€more€consistent€as€well€as€transparent,€so€thatÐ p À Ðmembers€of€the€public€can€more€clearly€understand€their€obligations€under€the€EAR.Ð  p  ÐÌIn€addition,€this€rule€adds€new€provisions€to€ðð744.1€to€clarify€that€a€party€cannot€proceed€with€an€export,Ð €Ð  Ðreexport,€or€transfer€(in„country)€that€is€in€transit€at€the€time€the€party€is€informed€by€BIS€that€a€license€isÐ 0€  Ðrequired€(in€accordance€with€the€end„user/end„use€controls€in€ðððð744.2,€744.3,€744.4€or€744.6€of€theÐ à0 ÐEAR),€unless€that€party€first€obtains€a€license€from€BIS€authorizing€the€completion€of€the€transaction.€Ð à ÐThis€rule€clarifies€that€once€a€person€ð ðis€informedðð€by€BIS€that€a€transaction€is€subject€to€one€of€theÐ @ Ðprohibitions€in€ðððð744.2,€744.3,€744.4€or€744.6,€a€person€would€be€required€to€apply€for€authorizationÐ ð@ Ðfrom€BIS€before€proceeding€with€the€transaction.€€This€rule€further€amends€the€EAR€to€clearly€explainÐ  ð Ðthe€steps€a€person€must€take€if€an€item€included€in€such€a€transaction€is€already€in€transit€when€a€personÐ P  Ðð ðis€informedðð€by€BIS.€€Ð P ÐÌThese€changes€to€part€744€are€intended€to€enhance€the€ability€of€BIS€to€stop€items€subject€to€the€EAR,Ð `!°" Ðincluding€items€not€on€the€Commerce€Control€List,€from€being€exported,€reexported€or€transferred€(in„Ð #`$ Ðcountry)€when€there€is€an€unacceptable€risk€that€such€items€will€be€used€in,€or€diverted€to,€any€of€theÐ À$ & Ðproliferation€activities€specified€in€ðððð744.2,€744.3,€744.4€and€744.6€of€the€EAR.Ð p&À!( ÐÌThis€clarification€is€consistent€with€UN€Security€Council€Resolution€1540€(2004),€which€includesÐ Ð) %, Ðbinding€obligations€on€all€UN€Member€States€to€prevent€the€proliferation€of€nuclear,€chemical,€orÐ €+Ð&. Ðbiological€weapons€and€their€means€of€delivery,€including€by€establishing€appropriate€controls€overÐ ° Ðrelated€materials.€€UNSCR€1540€stipulates€that€States€are€to€establish,€develop,€review€and€maintainÐ `° Ðappropriate€effective€national€export€and€transshipment€controls€over€such€items,€including€appropriateÐ ` Ðlaws€and€regulations€to€control€export,€transit,€transshipment€and€reexport;€and€to€establish€and€enforceÐ À  Ðappropriate€criminal€or€civil€penalties€for€violations€of€such€export€control€laws€and€regulations.Ð p À ÐÌThrough€this€clarification,€the€United€States€is€continuing€to€carry€out€its€commitment€to€the€ProliferationÐ Ð  ÐSecurity€Initiative€(PSI)€Statement€of€Interdiction€Principles,€which€states€that€PSI€partners€will€work€toÐ €Ð  Ðstrengthen€their€relevant€national€legal€authorities€where€necessary€and€not€to€allow€any€persons€subjectÐ 0€  Ðto€their€jurisdiction€to€transport€or€assist€in€the€transport€of€any€cargoes€of€weapons€of€mass€destructionÐ à0 Ð(WMD),€their€delivery€systems,€or€related€materials€to€or€from€states€or€non„state€actors€of€proliferationÐ à Ðconcern.€€The€PSI€is€a€global€effort€that€aims€to€stop€shipments€of€WMD,€their€delivery€systems,€andÐ @ Ðrelated€materials€flowing€to€or€from€states€or€non„state€actors€of€proliferation€concern.€€Announced€byÐ ð@ ÐPresident€Bush€on€May€31,€2003,€the€PSI€stems€from€the€National€Strategy€to€Combat€Weapons€of€MassÐ  ð ÐDestruction€issued€in€December€2002.€€That€strategy€recognizes€the€need€for€more€robust€tools€to€defeatÐ P  Ðthe€proliferation€of€WMD€around€the€world,€and€specifically€identifies€interdiction€as€an€area€whereÐ P Ðgreater€focus€will€be€placed.€€The€PSI€is€a€set€of€activities,€not€a€formal€treaty„based€organization,€thatÐ °  Ðfocuses€on€establishing€greater€coordination€among€its€partner€states€when€a€particular€action€is€needed.Ð `!°" ÐÌThis€rule€makes€the€following€specific€revisions€to€the€EAR:€€Ð À$ & ЀÌ1.€€€€€In€ðð744.1€(General€Provisions),€this€rule€amends€paragraph€(a)(1)(Introduction),€by€adding€ð ðtransferÐ  (p#* Ð(in„country)ðð€to€specify€clearly€that€the€prohibitions€in€ðððð744.2,€744.3,€744.4€and€744.6€also€apply€toÐ Ð) %, Ðsuch€scenarios.€€This€rule€also€amends€paragraph€(b)(2)€(Determine€Applicability),€by€adding€a€sentenceÐ €+Ð&. Ðat€the€end€of€that€paragraph€that€states€ð ðFor€exports,€reexports€or€transfers€(in„country)€that€are€in€transitÐ ° Ðat€the€time€you€are€informed€by€BIS€that€a€license€is€required€in€accordance€with€ðððð744.2(b),€744.3(b),Ð `° Ð744.4(b)€or€744.6(b)€of€the€EAR,€you€may€not€proceed€any€further€with€the€transaction,€unless€you€firstÐ ` Ðobtain€a€license€from€BIS€(see€part€748€of€the€EAR€for€instructions€on€how€to€apply€for€a€license).ðð€€ThisÐ À  Ðrule€also€amends€paragraph€(a)(1)€by€adding€ð ðtransfer€(in„country)ðð€to€specify€clearly€that€the€prohibitionÐ p À Ðspecified€in€ðð744.5€(Restrictions€on€Certain€Maritime€Nuclear€Propulsion€End„Uses)Ô#†&ˆ“%%!&ˆ“€#ÔÔ‡!&ˆ“%%&ˆ“Ô€also€applies€to€suchÐ  p  Ðscenarios.Ð Ð  ÐÌ2.€€€€€In€ðð744.2€(Restrictions€on€Certain€Nuclear€End„Uses),€this€rule€amends€paragraph€(a)€(GeneralÐ 0€  ÐProhibition)€by€clarifying€that€this€prohibition€in€ðð744.2€also€applies€to€transfers€(in„country)€to€conformÐ à0 Ðwith€the€language€used€in€ðððð744.3,€744.4€and€744.6.€€In€paragraph€(b)€(Additional€Prohibition),€this€ruleÐ à Ðamends€the€heading€to€clarify€that€this€paragraph€applies€an€additional€prohibition€ð ðon€persons€informedÐ @ Ðby€BISðð.€€Also€in€paragraph€(b),€this€rule€amends€the€ð ðis€informedðð€provisions€to€conform€with€the€ð ðisÐ ð@ Ðinformedðð€provisions€in€ðððð744.3,€744.4€and€744.6.€€Specifically,€the€rule€removes€the€phrase€ð ðexportersÐ  ð Ðor€reexportersðð,€replaces€it€with€the€term€ð ðpersonsðð€in€three€locations,€and€adds€the€phrase€ð ðtransfer€(in„Ð P  Ðcountry)ðð€to€clarify€that€this€prohibition€also€applies€to€transfers€(in„country).€€Also€in€paragraph€(b),€thisÐ P Ðrule€adds€the€phrase€ð ðor€for€the€export,€reexport,€or€transfer€(in„country)ðð€before€the€phrase€ð ðof€specifiedÐ °  Ðitemsðð€in€the€first€sentence,€among€other€minor€changes,€to€conform€with€ðððð744.3,€744.4€and€744.6.€€€Ð `!°" ÐÌ3.€€€€€In€ðð744.3€(Restrictions€on€Certain€Rocket€Systems€(Including€Ballistic€Missile€Systems€And€SpaceÐ À$ & ÐLaunch€Vehicles€And€Sounding€Rockets)€and€Unmanned€Air€Vehicles€(Including€Cruise€MissileÐ p&À!( ÐSystems,€Target€Drones€And€Reconnaissance€Drones)€End„Uses),€this€rule€amends€paragraph€(a)Ð  (p#* Ð(General€Prohibition)€by€inserting€the€word€ð ðthatðð€after€the€phrase,€ð ð...or€transfer€you€knowðð€and€byÐ Ð) %, Ðdeleting€the€word€ð ðtheðð€in€the€phrase€ð ðat€the€time€of€exportðð€to€conform€with€ðððð744.2,€744.4€and€744.6.€Ð €+Ð&. ÐIn€paragraph€(b)€(Additional€Prohibition),€this€rule€amends€the€heading€to€clarify€that€this€paragraphÐ ° Ðapplies€an€additional€prohibition€ð ðon€persons€informed€by€BISðð.€€€€Also€in€paragraph€(b),€this€rule€amendsÐ `° Ðthe€ð ðis€informedðð€provisions€by€adding€the€word€ð ðpersonsðð€in€two€locations,€by€adding€the€phrase€ð ð(in„Ð ` Ðcountry)ðð€after€the€word€transfer€and€by€adding€the€phrase€ð ðor€for€the€export,€reexport,€or€transfer€(in„Ð À  Ðcountry)ðð€before€the€phrase€ð ðof€specified€itemsðð€in€the€first€sentence,€among€other€minor€changes,€toÐ p À Ðconform€with€ðððð744.2,€744.4€and€744.6.€Ð  p  ÐÌ4.€€In€ðð744.6€(Restrictions€on€Certain€Activities€of€U.S.€Persons),€this€rule€amends€paragraph€(a)€(GeneralÐ €Ð  ÐProhibition)€to€conform€with€ðððð744.2,€744.3€and€744.4€by€adding€the€phrase€ð ð(in„country)ðð€after€theÐ 0€  Ðword€ð ðtransferðð€in€paragraphs€(a)(1)(i)€and€(a)(1)(ii)€and€in€paragraph€(a)(3)€to€clarify€that€thisÐ à0 Ðprohibition€in€ðð744.6€also€applies€to€transfers€(in„country).€€In€paragraph€(b)€(Additional€Prohibitions€onÐ à ÐU.S.€persons€informed€by€BIS)€this€rule€updates€the€ð ðis€informedðð€provisions€to€conform€with€ðððð744.2,Ð @ Ð744.3€and€744.4;€specifically€by€adding€the€phrase€ð ðby€specific€noticeðð€after€the€word€ð ðindividuallyðð€inÐ ð@ Ðthe€first€sentence€and€by€removing€the€term€ð ðexporterðð€and€replacing€it€with€the€term€ð ðU.S.€personsðð€inÐ  ð Ðthe€last€sentence.€Ð P  ÐÌ5.€In€ðð744.5€(Restrictions€on€Certain€Maritime€Nuclear€Propulsion€End„Uses),€this€rule€amendsÐ °  Ðparagraph€(a)€(General€Prohibition)€by€clarifying€that€this€prohibition€in€ðð744.5€also€applies€to€transfersÐ `!°" Ð(in„country).€€With€this€final€rule,€this€paragraph€(a)€prohibits€the€exports,€reexports,€and€transfers€(in„Ð #`$ Ðcountry)€of€items€subject€to€the€EAR€to€defined€nuclear€maritime€end„uses€in€ðð744.5.€€Ð À$ & ÐÓ ,ÓÓ<( 4Œ ä <”ìDœôL¤°œX<ÓÌÓ ,ÓÓ?(Ü Ü4Œ ä <”ìDœôL¤4ŠX?ÓòòRevisions€to€definitions€of€transfer€and€related€termsÐ  (p#* ÐóóIn€ðð772.1€(Definitions€of€Terms€as€Used€in€the€Export€Administration€Regulations),€this€rule€revises€theÐ Ð) %, Ðterm€ð ðtransferðð€to€clarify€that€the€term€merely€refers€to€a€conveyance€of€items.€€This€rule€further€clarifiesÐ €+Ð&. Ðthe€definition€by€including€the€definition€of€ð ðin„country€transfer/transfer€(in„country)ðð€as€an€ancillaryÐ ° Ðdefinition€to€the€term€ð ðtransferðð,€referring€to€the€conveyance€of€items€within€a€single€foreign€country.€Ð `° ÐThese€revisions€will€provide€greater€clarity€regarding€the€meaning€of€these€defined€terms€under€the€EAR.€Ð ` ÐIn€a€note€at€the€end€of€these€definitions,€this€rule€adds€cross€references€to€ðððð750.7(c)(Changes€to€aÐ À  Ðlicense)€and€764.2(e)(Acting€with€knowledge€of€a€violation).€€The€term€ð ðtransferðð€may€also€be€includedÐ p À Ðon€licenses€issued€by€BIS.€€In€that€regard,€these€cross€references€are€a€reminder€to€persons€involved€withÐ  p  Ðitems€authorized€by€a€BIS€license€that€changes€that€can€be€made€to€a€BIS€license€are€the€non„materialÐ Ð  Ðchanges€described€in€ðð750.7(c).€€In€addition,€persons€should€be€aware€that€any€person€that€knowinglyÐ €Ð  Ðmakes€a€material€change€to€a€BIS€license€without€proper€authorization€would€violate€ðð764.2(e)€of€theÐ 0€  ÐEAR.€€Ð à0 ÐÌThis€rule€also€corrects€several€places€in€the€EAR€where€the€term€ð ðtransferðð€is€used,€but€the€intendedÐ @ Ðmeaning€is€ð ðtransfer€(in„country)ðð€or€ð ðin„country€transferðð.€€Specifically,€references€to€the€term€ð ðtransferððÐ ð@ Ðin€ðð736.2,€General€Order€No.€2€to€Supp.€No.€1€to€part€736,€ðððð740.5,€740.7,€740.9,€740.11,€744.3,€744.4,Ð  ð Ð744.6,€Supp.€No.€2€to€part€748,€ðððð752.5,€752.8,€752.16,€and€Supplement€No.€3€to€part€752€are€clarifiedÐ P  Ðwith€this€rule.€€This€rule€also€clarifies€that€the€term€ð ðretransferðð€means€ð ðin„country€transferðð€by€replacingÐ P Ðthe€term€ð ðretransferðð€with€the€term€ð ðtransfer€(in„country)ðð€in€ðððð740.11,€740.17,€742.15,€752.5€and€Supp.Ð °  ÐNo.€3€to€part€752.€€This€rule€also€removes€one€outdated€reference€to€ð ðre„transferðð€in€Supp.€No.€5€to€partÐ `!°" Ð742€because€it€is€not€needed.Ô#†&ˆ“%%!&ˆ“10#ÔÔ‡!&ˆ“%%&ˆ“Ô€€This€rule€also€clarifies€that€the€terms€ð ðtransferredðð€and€ð ðtransferðð,€in€theÐ #`$ Ðcontext€of€ðððð760.1€and€760.3,€mean€ð ðassigned€toðð€and€ð ðassignmentðð,€respectively.€€€€Ð À$ & ÐÌò òComments€and€Responses€€Ð  (p#* Ðó óòòÔ#†&ˆ“%%!&ˆ“CK#ÔÔ‡-&ˆ“%%&ˆ“ÔóóBIS€received€one€public€comment,€which€addressed€four€aspects€of€the€proposed€rule.€€A€summary€of€thisÐ Ð) %, Ðpublic€comment€and€BIS€responses€appear€below.€€òòÐ €+Ð&. ÐòòComment€1:€Transfer€provisions€under€the€EAR€should€be€removed€or€at€least€limited€to€ð ðU.S.€personððÐ ° Ðactivities€under€ðð744.6óóÐ `° ÐóóThe€proposed€changes€to€part€744€were€intended€to€make€certain€conforming€changes€to€certain€end„userÐ ` Ðand€end/use€based€controls€under€the€EAR.€€The€public€comment€to€make€ðð744.2€conform€with€ðððð744.3Ð À  Ðand€744.4€by€removing€the€transfer€(in„country)€prohibition€from€these€other€end„use€controlÔ#†&ˆ“%%-&ˆ“¦L#ÔÔ‡-&ˆ“%%&ˆ“Ôs€would€beÐ p À Ðcontrary€to€U.S.€export€control€interests.€€Adopting€this€public€comment€for€making€the€end„use€controlsÐ  p  Ðunder€part€744€conform€in€this€way€would€make€it€be€permissible€under€the€EAR€for€foreign€nationals€toÐ Ð  Ðð ðknowinglyðð€transfer€(in„country)€items€that€are€subject€to€the€EAR€to€prohibited€end„users€that€areÐ €Ð  Ðinvolved€in€prohibited€missile€technology€or€chemical€and€biological€end„uses.€€€Ð 0€  ÐÌBIS€tries€as€much€as€possible€to€narrow€controls€under€the€EAR,€especially€those€that€haveÐ à Ðextraterritorial€reach,€to€those€controls€that€are€most€critical€to€protecting€U.S.€export€control€interests.€Ð @ ÐThe€end„use€controls€in€part€744,€especially€those€under€ðððð744.2,€744.3,€744.4€and€744.6€are€critical€toÐ ð@ Ðprotecting€U.S.€non„proliferation€control€interests.€€Ô#†&ˆ“%%-&ˆ“¹O#ÔÔ‡-&ˆ“%%&ˆ“ÔBy€making€this€conforming€change€to€ðð744.2,€alongÐ  ð Ðwith€the€other€conforming€changes€to€certain€end„use€controls€in€part€744,€BIS€is€taking€a€positive€step€toÐ P  Ðenhance€U.S.€national€security€by€helping€to€better€ensure€that€items€subject€to€the€EAR€are€not€beingÐ P Ðð ðknowinglyðð€supplied€to€persons€involved€in€certain€prohibited€nuclear€end„uses.€Ð °  ÐÌòòòòComment€2:€Transfer€provisions€under€the€EAR€are€extraterritorialóóÔ#†&ˆ“%%-&ˆ“£S#ÔÔ‡-&ˆ“%%&ˆ“Ô€€€óóÔ#†&ˆ“%%-&ˆ“àU#ÔÔ‡-&ˆ“%%&ˆ“ÔÐ #`$ ÐGiven€that€the€EAR€controls€ð ðitemsðð€that€are€subject€to€the€EAR€no€matter€where€they€are€located€in€theÐ À$ & Ðworld,€by€its€inherent€nature€the€EAR€is€extraterritorial€in€its€reach.€€In€some€cases,€EAR€restrictionsÐ p&À!( Ðextend€to€ð ðitemsðð€that€are€subject€to€the€EAR€that€are€located€within€a€foreign€country,€such€as€theÐ  (p#* Ðprovisions€dealing€with€transfers€(in„country).€€Another€example€of€the€extraterritorial€reach€of€the€EARÐ Ð) %, Ðwould€be€when€an€ð ðitemðð€that€is€subject€to€the€EAR€is€located€in€a€foreign€country,€but€was€illegallyÐ €+Ð&. Ðexported€to€that€foreign€country.€€Under€ðð764.2(e)€a€person€that€had€ð ðknowledgeðð€of€that€violation€wouldÐ ° Ðbe€prohibited€from€being€involved€with€that€ð ðitemðð€that€was€subject€to€the€EAR€that€was€involved€with€aÐ `° Ðviolation€of€the€EAR.€€This€would€extend€to€certain€activities,€such€as€servicing€that€ð ðitemðð€that€wasÐ ` Ðsubject€to€the€EAR€that€was€involved€in€a€violation€of€the€EAR.€€Ð À  ÐÌThe€jurisdiction€of€the€EAR€follows€the€ð ðitemðð€that€is€subject€to€the€EAR.€€In€certain€limited€cases,€theÐ  p  Ðjurisdictional€reach€of€the€EAR€extends€even€further,€such€as€the€end„use€control€under€ðð744.6.€Ð Ð  ÐHowever,€because€these€end„use€controls€extend€beyond€ð ðitemsðð€that€are€subject€to€the€EAR€(e.g.,Ð €Ð  Ðapplying€to€certain€foreign€origin€items€and€certain€activities),€these€end„use€controls€are€only€applicableÐ 0€  Ðto€ð ðU.S.€personsðð.€€In€these€cases€the€EAR€jurisdiction€is€being€asserted€over€the€ð ðU.S.€personðð€whichÐ à0 Ðallows€for€a€broader€EAR€jurisdiction€to€apply.€€Any€other€extraterritorial€application€of€the€EAR€willÐ à Ðalways€be€tied€to€an€ð ðitemðð€that€is€subject€to€the€EAR.€Ð @ ÐÌThe€end„use€controls€in€part€744,€especially€those€end„use€controls€under€ðððð744.2,€744.3,€744.4€andÐ  ð Ð744.6€are€broad€in€scope€given€that€they€apply€to€all€items€that€are€subject€to€the€EAR.€€However,€each€ofÐ P  Ðthese€end„use€controls€is€targeted€by€including€a€required€ð ðknowledgeðð€element€to€trigger€the€end„useÐ P Ðcontrol.€€For€the€end„use€control€in€ðð744.2,€this€control€is€further€targeted€by€carving€out€countries€thatÐ °  Ðare€listed€in€Supplement€No.€3€to€Part€744€and€by€specifying€the€types€of€nuclear€end„uses€that€are€ofÐ `!°" Ðconcern€to€the€U.S.€Government€under€ðð744.2.€€Ð #`$ ÐÌLastly,€BIS€would€note€that€no€foreign€governments€submitted€public€comments€regarding€this€proposedÐ p&À!( Ðrule.€€Ô#†&ˆ“%%-&ˆ“(V#ÔÔ‡!&ˆ“%%&ˆ“ÔAlso€when€the€transfer€(in„country)€provisions€were€added€to€ðððð744.3€and€744.4,€otherÐ  (p#* Ðgovernments€around€the€world€did€not€voice€complaints€to€BIS.€€In€contrast,€since€that€time,€variousÐ Ð) %, Ðcountries€around€the€world€have€increasingly€worked€with€the€USG€in€various€international€forums,€suchÐ €+Ð&. Ðas€the€Proliferation€Security€Initiative€(PSI)€to€help€stem€the€flow€of€WMDs€and€many€countries€haveÐ ° Ðadopted€additional€restrictions€within€their€own€export€control€systems€to€help€stem€the€proliferation€ofÐ `° ÐWMDs.€€Ô#†&ˆ“%%!&ˆ“la#ÔÔ‡-&ˆ“%%&ˆ“ԀР` ÐÌòòòòComment€3:€Transfer€provisions€under€the€EAR€are€not€enforceableóóóóÔ#†&ˆ“%%-&ˆ“d#ÔÔ‡-&ˆ“%%&ˆ“Ô€€€Ð p À ÐBIS€actively€works€with€other€countries€to€help€enforce€the€EAR,€including€transfer€provisions€under€theÐ  p  ÐEAR.€€For€example,€as€part€of€BISððs€international€efforts€to€achieve€its€enforcement€mission,€BIS€sendsÐ Ð  Ðexperienced€Department€of€Commerce€Special€Agents€overseas€as€Export€Control€Officers€(ECOs)€at€keyÐ €Ð  ÐU.S.€embassies€in€Beijing,€China;€Hong€Kong;€Abu€Dhabi,€UAE;€New€Delhi,€India;€and€Moscow,Ð 0€  ÐRussia.€€The€principal€mission€of€the€ECOs€is€to€ensure€that€U.S.€dual„use€goods€entering€their€region€areÐ à0 Ðused€in€accordance€with€U.S.€export€control€laws€and€regulations.€€Compliance€verification€isÐ à Ðaccomplished€through€targeted€end„use€checks€and€by€working€with€host€governments€and€localÐ @ Ðbusinesses€to€ensure€that€they€understand€and€comply€with€U.S.€export€laws€and€regulations,€includingÐ ð@ Ðany€applicable€transfer€provisions€under€the€EAR.€€ECOs€also€work€with€host€governments€and€localÐ  ð Ðbusinesses€to€provide€information€and€appropriate€training€to€facilitate€better€understanding€of€the€EAR.€€Ô#†&ˆ“%%-&ˆ“µd#ÔÐ P  ÐÌòòòòComment€4:€Guidance€on€noÔ‡!&ˆ“%%&ˆ“Ôt€proceeding€with€an€in„transit€Ô#†&ˆ“%%!&ˆ“ãi#ÔÔ‡!&ˆ“%%&ˆ“Ôtransaction€at€the€time€you€are€informed€byÐ °  ÐBISÔ#†&ˆ“%%!&ˆ“Ej#ÔÔ‡!&ˆ“%%&ˆ“Ô€is€not€neededóóóóÐ `!°" ÐÔ#†&ˆ“%%!&ˆ“Êj#ÔThe€public€comment€noted€that€the€proposed€addition€to€ðð744.1(b)(2)€on€noÔ‡!&ˆ“%%&ˆ“Ôt€proceeding€with€an€in„Ð #`$ Ðtransit€Ô#†&ˆ“%%!&ˆ“k#ÔÔ‡!&ˆ“%%&ˆ“Ôtransaction€at€the€time€you€are€informed€by€BIS€that€a€license€is€required€Ô#†&ˆ“%%!&ˆ“øk#ÔÔ‡!&ˆ“%%&ˆ“Ôis€unnecessary€andÐ À$ & Ðundesirable€Ô#†&ˆ“%%!&ˆ“…l#ÔÔ‡!&ˆ“%%&ˆ“Ôbecause€tÔ#†&ˆ“%%!&ˆ“úl#ÔÔ‡!&ˆ“%%&ˆ“Ôhe€point€is€already€covered€more€clearly€in€ðð758.8(b).Ô#†&ˆ“%%!&ˆ“Em#ÔÔ‡!&ˆ“%%&ˆ“Ô€€Ð p&À!( ÐÌBIS€believes€that€this€provision€will€provide€a€mechanism€by€which€a€party€can€apply€for€authorization€toÐ Ð) %, Ðcontinue€a€transaction€once€they€have€been€informed€by€BIS€of€such€risk,€as€described€in€the€licenseÐ €+Ð&. Ðrequirements€in€ðððð744.2,€744.3,€744.4€or€744.6,€after€the€ð ðexportðð€has€taken€place€(òòi.e.óó,€left€the€territory).€Ð ° ÐThis€provision€is€needed€given€the€restrictions€in€ðð748.4(d)(2).€€Section€758.8(b)€does€not€provide€clearÐ `° Ðguidance€regarding€whether€a€party€could€apply€for€a€license€once€they€are€informed€under€the€provisionsÐ ` Ðof€ðððð744.2,€744.3,€744.4€and€744.6.€€Ô#†&ˆ“%%!&ˆ“Àm#ÔÔ‡!&ˆ“%%&ˆ“ÔÐ À  ÐÌò òChanges€from€the€Proposed€Ruleó óÐ  p  ÐAfter€considering€the€one€public€comment€received,€BIS€is€implementing€the€proposed€rule€as€wasÐ Ð  Ðproposed€without€making€any€additional€changes.òòò òó óóóÐ €Ð  ÐÌòòSavings€ClauseóóÐ à0 ÐÑ  ÑShipments€of€items€removed€from€eligibility€for€a€License€Exception€or€export€or€reexport€without€aÐ à Ðlicense€(NLR)€as€a€result€of€this€regulatory€action€that€were€on€dock€for€loading,€on€lighter,€laden€aboardÐ @ Ðan€exporting€or€reexporting€carrier,€or€en€route€aboard€a€carrier€to€a€port€of€export€or€reexport,€onÐ ð@ ÐNovember€18,€2008,€pursuant€to€actual€orders€for€export€or€reexport€to€a€foreign€destination,€mayÐ  ð Ðproceed€to€that€destination€under€the€previous€eligibility€for€a€License€Exception€or€export€or€reexportÐ P  Ðwithout€a€license€(NLR)€so€long€as€they€are€exported€or€reexported€beforeòò€óóDecember€30,€2008.€€Any€suchÐ P Ðitems€not€actually€exported€or€reexported€before€midnight,€on€December€30,€2008,€require€a€license€inÐ °  Ðaccordance€with€this€rule.Ô#†&ˆ“%%!&ˆ“Ðp#ÔÔ‡!&ˆ“%%&ˆ“ÔÐ `!°" ÐÌà  àÔ#†&ˆ“%%!&ˆ“Õu#ÔÔ‡-&ˆ“%%&ˆ“ÔAlthough€the€Export€Administration€Act€expired€on€August€20,€2001,€the€President,€throughÐ À$ & ÐExecutive€Order€13222€of€August€17,€2001,€3€CFR,€2001€Comp.,€p.€783€(2002),€as€extended€by€theÐ p&À!( ÐNotice€of€July€23,€2008,€73€FR€43603€(July€25,€2008),€has€continued€the€Export€AdministrationÐ  (p#* ÐRegulations€in€effect€under€the€International€Emergency€Economic€Powers€Act.€€€€Ô#†&ˆ“%%-&ˆ“9v#ÔÔ‡!&ˆ“%%&ˆ“ÔÐ Ð) %, ÐÐ €+Ð&. Ðò òRulemaking€RequirementsÐ ° Ðó óà  à1.€€This€final€rule€has€been€determined€to€be€not€significant€for€purposes€of€E.O.€12866.Ð `° ÐÌà  à2.€€Notwithstanding€any€other€provision€of€law,€no€person€is€required€to€respond€to,€nor€shall€anyÐ À  Ðperson€be€subject€to€a€penalty€for€failure€to€comply€with€a€collection€of€information,€subject€to€theÐ p À Ðrequirements€of€the€Paperwork€Reduction€Act,€unless€that€collection€of€information€displays€a€currentlyÐ  p  Ðvalid€Office€of€Management€and€Budget€Control€Number.€€This€final€rule€involves€a€collection€ofÐ Ð  Ðinformation€subject€to€the€Paperwork€Reduction€Act€of€1980€(44€U.S.C.€3501€òòet€seq.óó).€€This€collectionÐ €Ð  Ðhas€been€approved€by€the€Office€of€Management€and€Budget€under€control€number€0694„0088,€ð ðMulti„Ð 0€  ÐPurpose€Application,ðð€which€carries€a€burden€hour€estimate€of€58€minutes€for€a€manual€or€electronicÐ à0 Ðsubmission.€€This€final€rule€is€expected€to€have€a€minimal€increase€on€the€total€number€of€licenseÐ à Ðapplications€submitted€to€BIS.€Send€comments€regarding€these€burden€estimates€or€any€other€aspect€ofÐ @ Ðthese€collections€of€information,€including€suggestions€for€reducing€the€burden,€to€Ô#†&ˆ“%%!&ˆ“x#ÔÔ‡-&ˆ“%%&ˆ“ÔJasmeet€SeehraÔ#†&ˆ“%%-&ˆ“Û}#ÔÔ‡!&ˆ“%%&ˆ“Ô,€OfficeÐ ð@ Ðof€Management€and€Budget€(OMB),€and€to€the€Regulatory€Policy€Division,€Bureau€of€Industry€andÐ  ð ÐSecurity€as€indicated€in€the€ð ðADDRESSESðð€section€of€this€rule.Ð P  ÐÌà  à3.€€€€This€rule€does€not€contain€policies€with€Federalism€implications€as€that€term€is€definedÐ °  Ðunder€E.O.€13132.Ð `!°" ÐÌà  à4.€€€€The€provisions€of€the€Administrative€Procedure€Act€(5€U.S.C.€553)€requiring€notice€ofÐ À$ & Ðproposed€rulemaking,€the€opportunity€for€public€participation,€and€a€delay€in€effective€date,€areÐ p&À!( Ðinapplicable€because€this€regulation€involves€a€military€and€foreign€affairs€function€of€the€United€StatesÐ  (p#* Ð(5€U.S.C.€553(a)(1)).€€Further,€no€other€law€requires€that€a€notice€of€proposed€rulemaking€and€anÐ Ð) %, Ðopportunity€for€public€comment€be€given€for€this€final€rule.€€Because€a€notice€of€proposed€rulemakingÐ €+Ð&. Ðand€an€opportunity€for€public€comment€are€not€required€to€be€given€for€this€rule€under€the€AdministrativeÐ ° ÐProcedure€Act€or€by€any€other€law,€the€analytical€requirements€of€the€Regulatory€Flexibility€Act€(5Ð `° ÐU.S.C.€601€et€seq.)€are€not€applicable.€€Therefore,€this€regulation€is€issued€in€final€form.€€Although€theÐ ` Ðformal€comment€period€closed€on€June€17,€2008,€public€comments€on€this€regulation€are€welcome€on€aÐ À  Ðcontinuing€basis.€€Comments€should€be€submitted€to€one€of€the€addresses€listed€in€the€ADDRESSESÐ p À Ðsection€of€the€preamble€of€this€final€rule.€€Ð  p  ÐÌÌList€of€Subjects€Ð 0€  ÐÌ15€CFR€Part€736€and€772€Ð à Ðà  àExports.Ð @ Ð15€CFR€Part€740,€748€and€752€Ð ð@ Ðà  àAdministrative€practice€and€procedure,€Exports,€Reporting€and€recordkeeping€requirements.Ð  ð Ð15€CFR€Part€742€Ð P  Ðà  àExports,€Terrorism.Ð P Ð15€CFR€Part€744Ð °  Ðà  àExports,€Reporting€and€recordkeeping€requirements,€Terrorism.Ð `!°" Ð15€CFR€Part€760€Ð #`$ Ðà  àBoycotts,€Exports,€Reporting€and€recordkeeping€requirements.Ð À$ & ÐÌà  àAccordingly,€parts€736,€740,€742,€744,€748,€752,€760,€and€772€of€the€Export€AdministrationÐ  (p#* ÐRegulations€(15€CFR€parts€730„774)€are€amended€as€follows:Ð Ð) %, ÐÐ €+Ð&. Ðò òPART€736€„€[AMENDED]Ð ° Ðó óà  à1.à ` àThe€authority€citation€for€15€CFR€part€736€continues€to€read€as€follows:Ð `° Ðà  àò òAuthority:ó ó€Ô#†&ˆ“%%!&ˆ“+~#ÔÔ‡"&ˆ“%%&ˆ“Ô50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€22€U.S.C.€2151€note;€E.O.Ð ` Ð12938,€59€FR€59099,€3€CFR,€1994€Comp.,€p.€950;€E.O.€13020,€61€FR€54079,€3€CFR,€1996€Comp.€p.€219;Ð È  ÐE.O.€13026,€61€FR€58767,€3€CFR,€1996€Comp.,€p.€228;Ô#†&ˆ“%%"&ˆ“*‰#ÔÔ‡2&ˆ“%%&ˆ“Ô€E.O.€13222,€66€FR€44025,Ô#†&ˆ“%%2&ˆ“„Š#ÔÔ‡"&ˆ“%%&ˆ“Ô€3€CFR,€2001€Comp.,Ð x È Ðp.€783;€E.O.€13338,€69€FR€26751,€May€13,€2004Ô#†&ˆ“%%"&ˆ“ߊ#ÔÔ‡"&ˆ“%%&ˆ“Ô;€Notice€of€July€23,€2008,€73€FR€43603€(July€25,€2008)Ô#†&ˆ“%%"&ˆ“v‹#ÔÔ‡"&ˆ“%%&ˆ“Ô;Ð ( x  ÐNotice€of€November€8,€2007,€72€FR€63963€(November€13,€2007)Ô#†&ˆ“%%"&ˆ“î‹#ÔÔ‡"&ˆ“%%&ˆ“Ô.Ô#†&ˆ“%%"&ˆ“Œ#ÔÔ‡!&ˆ“%%&ˆ“ÔÐ Ø(  ÐÌà  à2.€à ` àSection€736.2€is€amended€by€revising€the€first€sentence€of€paragraph€(b)(10)€to€read€asÐ 8ˆ  Ðfollows:Ð è8 ÐÌò òðð736.2ó ó€ò òGeneral€prohibitions€and€determination€of€applicability.Ð H˜ Ðó ó*€€€€€€*€€€€€*€€€€€*€€€€€*Ð P Ð(b)€*€€€€€*€€€€€*Ð ° Ðà  à(10)ò ò€ó ó*€€€€€*€€€€€€*€€You€may€not€sell,€transfer,€export,€reexport,€finance,€order,€buy,€remove,Ð `° Ðconceal,€store,€use,€loan,€dispose€of,€transport,€forward,€or€otherwise€service,€in€whole€or€in€part,€any€itemÐ h Ðsubject€to€the€EAR€and€exported€or€to€be€exported€with€knowledge€that€a€violation€€of€the€ExportÐ È  ÐAdministration€Regulations,€the€Export€Administration€Act€or€any€order,€license,€License€Exception,€orÐ x!È" Ðother€authorization€issued€thereunder€has€occurred,€is€about€to€occur,€or€is€intended€to€occur€inÐ (#x$ Ðconnection€with€the€item.€€*€€€€€*€€€€€*€€€€€Ð Ø$( & ÐÌà  à3.€à ` àGeneral€Order€No.€2€to€Supplement€No.€1€to€part€736,€is€amended€by€revising€the€lastÐ 8(ˆ#* Ðsentence€of€paragraph€(b)€to€read€as€follows:Ð è)8%, ÐÐ ˜+è&. Ðò òSupplement€No.€1€to€Part€736€„€General€OrdersÐ ° Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð `° Ðò òGeneral€Order€No.€2Ð ` Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð À  Ð(b)€*€€€€€*€€€€€*€€€€€€License€conditions€requiring€written€U.S.€Government€authorization€for€the€reexport,Ð p À Ðtransfer€(in„country),€or€resale€of€items€already€exported€or€reexported€remain€in€effect,€and€requests€forÐ  p  ÐBIS€authorization€to€reexport,€transfer€(in„country),€or€sell€such€items€will€require€interagency€approval.Ð Ð  Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð €Ð  ÐÌò òPART€740€„€[AMENDED]Ð à0 Ðó óà  à4.€à ` àThe€authority€citation€for€15€CFR€part€740€continues€to€read€as€follows:€Ð à Ðà  àò òAuthority:ó ó€Ô#†&ˆ“%%!&ˆ“ÄŒ#ÔÔ‡"&ˆ“%%&ˆ“Ô50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€€22€U.S.C.€7201€òòet€seq.óóÔ#†&ˆ“%%"&ˆ“L•#ÔÔ‡"&ˆ“%%&ˆ“Ô;€E.O.Ð @ Ð13026,€61€FR€58767,€3€CFR,€1996€Comp.,€p.€228;€€E.O.€13222,€66€FR€44025,€3€CFR,€2001€Comp.,€p.Ð øH Ð783;€Notice€of€July€23,€2008,€73€FR€43603€(July€25,€2008)Ô#†&ˆ“%%"&ˆ“ì•#ÔÔ‡"&ˆ“%%&ˆ“Ô.Ô#†&ˆ“%%"&ˆ“õ–#ÔÔ‡"&ˆ“%%&ˆ“Ô€Ô#†&ˆ“%%"&ˆ“8—#ÔÔ‡!&ˆ“%%&ˆ“ÔÐ ¨ø ÐÌÓ ¨ýÓÓ °ÓÓ6"Œ Œ ä <”ìDœôL¤ÜÜ‹X6Ó5.€à ` àSection€740.5€is€amended€by€revising€the€first€and€second€sentences€of€paragraph€(b)(1)Ð X Ðto€read€as€follows:Ð ¸  ÐÓ ¨ýÓÓ °ÓÓ<(Ü Ü4Œ ä <”ìDœôL¤Œ Œ ‰X<ÓÌò òðð740.5€Civil€end„users€(CIV)ó ó.Ð #h$ Ð*€€€€€€*€€€€€*€€€€€*€€€€€*Ð Ð$ & Ð(b)€òòRestrictionsóó.Ð €&Ð!( Ðò òà  àó ó(1)€*€€€€€*€€€€€*€€You€may€not€use€CIV€if€you€ð ðknowðð€the€item€will€be€or€is€intended€to€be€exported,Ð 0(€#* Ðreexported,€or€transferred€(in„country)€to€military€uses€or€military€end„users.€€Such€exports,€reexports,Ð à)0%, Ðand€transfers€(in„country)€will€continue€to€require€a€license.€€In€addition€to€conventional€militaryÐ +à&. Ðactivities,€military€uses€include€any€proliferation€activities€described€and€prohibited€by€part€744€of€theÐ ° ÐEAR.€Ð `° Ð*€€€€€*€€€€€*Ð ` ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*Ð p À ÐÌà  à6.€à ` àSection€740.7€is€amended€by€revising€paragraph€(b)(5)€to€read€as€follows:Ð Ð  ÐÌò òðð740.7€Computers€(APP)Ð 0€  Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð à0 Ð(b)€*€€€€€€*€€€€€*Ð à Ðà  à(5)€License€Exception€APP€does€not€authorize€exports,€reexports€and€transfers€(in„country)€forÐ @ Ðnuclear,€chemical,€biological,€or€missile€end„users€and€end„uses€subject€to€license€requirements€underÐ ð@ Ððð744.2,€ðð744.3,€ðð744.4,€and€ðð744.5€of€the€EAR.€€Such€exports,€reexports€and€transfers€(in„country)€willÐ  ð Ðcontinue€to€require€a€license€and€will€be€considered€on€a€case„by„case€basis.ò ò€€ó ó€€Reexports€and€transfersÐ P  Ð(in„country)€to€these€end„users€and€end„uses€in€eligible€countries€are€strictly€prohibited€without€priorÐ X Ðauthorization.Ð ¸  Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð h!¸" ÐÌà  à7.€à ` àSection€740.9€is€amended€by€revising€paragraph€(a)(2)(ix)(A)€to€read€as€follows:Ð È$ & ÐÌò òðð740.9ó ó€ò òTemporary€imports,€exports,€and€reexports€(TMP).€Ð ((x#* Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð à)0%, Ð(a)€*€€€€€*€€€€€*Ð +à&. Ðà  à(2)€*€€€€€*€€€€€*Ð ° Ðà  àà ` à(ix)€òòTemporary€exports€to€a€U.S.€subsidiary,€affiliate€or€facility€in€Country€Group€B.Ð `° Ðóóà  àà ` àà ¸ à(A)€Components,€parts,€tools€or€test€equipment€exported€by€a€U.S.€person€to€itsÐ ` Ðsubsidiary,€affiliate€or€facility€in€a€country€listed€in€Country€Group€B€(see€Supplement€No.€1€to€this€part)Ð À  Ðthat€is€owned€or€controlled€by€the€U.S.€person,€if€the€components,€part,€tool€or€test€equipment€is€to€beÐ p À Ðused€for€manufacture,€assembly,€testing,€production€or€modification,€provided€that€no€components,€parts,Ð  p  Ðtools€or€test€equipment€or€the€direct€product€of€such€components,€parts,€tools€or€test€equipment€areÐ Ð  Ðtransferred€(in„country)€or€reexported€from€such€subsidiary,€affiliate€or€facility€without€priorÐ €Ð  Ðauthorization€by€BIS.Ð 0€  Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð à0 ÐÌà  à8.€à ` àSection€740.11€is€amended€by€revising€paragraph€(c)(3)€to€read€as€follows:Ð @ ÐÌò òðð740.11€Governments,€international€organizations,€and€international€inspections€under€theÐ  ð ÐChemical€Weapons€Convention€(GOV)ó óÔ#†&ˆ“%%!&ˆ“{—#ÔÔ‡#&yÀ%%&ˆ“Ô.Ð P  ÐÔ#†&ˆ“%%#&yÀJ¦#ÔÔ‡!&ˆ“%%&ˆ“Ô*€€€€€*€€€€€*€€€€€*€€€€€*Ð ` Ð(c)€*€€€€€*€€€€€*Ð À  Ðà  à(3)€òòConfidentiality.óó€€The€application€of€the€provisions€of€this€paragraph€(c)€is€subject€to€theÐ p!À" Ðcondition€that€the€confidentiality€of€business€information€is€strictly€protected€in€accordance€withÐ  #p$ Ðapplicable€provisions€of€the€EAR€and€other€U.S.€laws€regarding€the€use€and€transfer€of€U.S.€goods€andÐ Ð$ & Ðservices.Ð €&Ð!( Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð 0(€#* Ðà  àÌò òPART€742€„€[AMENDED]Ð +à&. Ðó óà  à9.€à ` àThe€authority€citation€for€15€CFR€part€742€continues€to€read€as€follows:Ð ° Ðà  àò òAuthority:ó ó€Ô#†&ˆ“%%!&ˆ“¢¦#ÔÔ‡"&ˆ“%%&ˆ“Ô50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€22€U.S.C.€3201€òòet€seqóó.;€42Ð `° ÐU.S.C.€2139a;€22€U.S.C.€7201€òòet€seq.óóÔ#†&ˆ“%%"&ˆ“Í©#ÔÔ‡"&ˆ“%%&ˆ“Ô;€22€U.S.C.€7210Ô#†&ˆ“%%"&ˆ“¯ª#ÔÔ‡"&ˆ“%%&ˆ“Ô;€Sec€1503,€Pub.€L.€108-11,€117€Stat.€559;€E.O.Ð h Ð12058,€43€FR€20947,€3€CFR,€1978€Comp.,€p.€179;€E.O.€12851,€58€FR€33181,€3€CFR,€1993€Comp.,€p.Ð È  Ð608;€E.O.€12938,€59€FR€59099,€3€CFR,€1994€Comp.,€p.€950;€E.O.€13026,€61€FR€58767,€3€CFR,€1996Ð x È ÐComp.,€p.€228;€E.O.€13222,€66€FR€44025,€3€CFR,€2001€Comp.,€p.€783;€Presidential€DeterminationÐ ( x  Ð2003-23€of€May€7,€2003,€68€FR€26459,€May€16,€2003Ô#†&ˆ“%%"&ˆ“«#ÔÔ‡"&ˆ“%%&ˆ“Ô;€Notice€of€July€23,€2008,€73€FR€43603€(July€25,Ð Ø(  Ð2008)Ô#†&ˆ“%%"&ˆ“­#ÔÔ‡"&ˆ“%%&ˆ“Ô;€Notice€of€November€8,€2007,€72€FR€63963€(November€13,€2007)Ô#†&ˆ“%%"&ˆ“š­#ÔÔ‡"&ˆ“%%&ˆ“Ô.Ô#†&ˆ“%%"&ˆ“®#ÔÔ‡!&ˆ“%%&ˆ“ÔÐ ˆØ  ÐÌÓ ¨ýÓÓ °ÓÓ6"Œ Œ ä <”ìDœôL¤ÜÜ‹X6Ó10.€à ` àIn€Supplement€No.€5€to€Part€742€is€amended€by€revising€paragraph€(3)€to€read€as€follows:Ð è8 ÐÓ ¨ýÓÓ °ÓÓ<(Ü Ü4Œ ä <”ìDœôL¤Œ Œ ‰X<ÓÌò òSupplement€No.€5€to€Part€742€„ó ó€ò òÔ#†&ˆ“%%!&ˆ“\®#ÔCHECKLIST€ON€ENCRYPTION€AND€OTHERÐ H˜ Ðð ðINFORMATION€SECURITYðð€FUNCTIONSó óÔ‡!&ˆ“%%&ˆ“ÔÐ P ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*Ð `° Ðò ò3.€ó óÔ#†&ˆ“%%!&ˆ“c°#ÔFor€products€that€contain€an€ð ðencryption€componentðð,€can€this€encryption€component€be€easily€used€byÐ ` Ðanother€product,€or€accessed€by€the€end„user€for€cryptographic€use?€Ô‡!&ˆ“%%&ˆ“Ôò òó óÐ È  ÐÌò òPART€744€„€[AMENDED]Ð (#x$ Ðó óà  à11.à ` àThe€authority€citation€for€15€CFR€part€744€continues€to€read€as€follows:Ð Ø$( & Ðà  àò òAuthority:ó ó€Ô#†&ˆ“%%!&ˆ“µ±#ÔÔ‡"&ˆ“%%&ˆ“Ô50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€22€U.S.C.€3201€òòet€seqóó.;€42Ð ˆ&Ø!( ÐU.S.C.€2139a;€22€U.S.C.€7201€òòet€seq.óóÔ#†&ˆ“%%"&ˆ“ײ#ÔÔ‡"&ˆ“%%&ˆ“Ô;€22€U.S.C.€7210Ô#†&ˆ“%%"&ˆ“¹³#ÔÔ‡"&ˆ“%%&ˆ“Ô;€E.O.€12058,€43€FR€20947,€3€CFR,€1978€Comp.,€p.Ð @(#* Ð179;€E.O.€12851,€58€FR€33181,€3€CFR,€1993€Comp.,€p.€608;€E.O.€12938,€59€FR€59099,€3€CFR,€1994Ð ð)@%, ÐComp.,€p.€950;€E.O.€12947,€60€FR€5079,€3€CFR,€1995€Comp.,€p.€356;€E.O.€13026,€61€FR€58767,€3€CFR,Ð  +ð&. Ð1996€Comp.,€p.€228;€Ô#†&ˆ“%%"&ˆ“ ´#ÔÔ‡2&ˆ“%%&ˆ“ÔE.O.€13099,€63€FR€45167,€3€CFR,€1998€Comp.,€p.€208Ô#†&ˆ“%%2&ˆ“޵#ÔÔ‡"&ˆ“%%&ˆ“Ô;Ô#†&ˆ“%%"&ˆ“¶#ÔÔ‡2&ˆ“%%&ˆ“Ô€E.O.€13222,€66€FR€44025,Ô#†&ˆ“%%2&ˆ“E¶#ÔÔ‡"&ˆ“%%&ˆ“Ô€3Ð ° ÐCFR,€2001€Comp.,€p.€783;€E.O.€13224,€66€FR€49079,€3€CFR,€2001€Comp.,€p.€786Ô#†&ˆ“%%"&ˆ“ ¶#ÔÔ‡"&ˆ“%%&ˆ“Ô;€Ô#†&ˆ“%%"&ˆ“D·#ÔÔ‡"&ˆ“%%&ˆ“ÔNotice€of€July€23,Ð `° Ð2008,€73€FR€43603€(July€25,€2008)Ô#†&ˆ“%%"&ˆ“ˆ·#ÔÔ‡"&ˆ“%%&ˆ“Ô;€Notice€of€November€8,€2007,€72€FR€63963€(November€13,€2007)Ô#†&ˆ“%%"&ˆ“¸#ÔÔ‡"&ˆ“%%&ˆ“Ô.Ô#†&ˆ“%%"&ˆ“‘¸#ÔÔ‡"&ˆ“%%&ˆ“Ô€Ô#†&ˆ“%%"&ˆ“Ô¸#ÔÔ‡!&ˆ“%%&ˆ“ÔÐ ` ÐÌÓ ¨ýÓÓ °ÓÓ6"Œ Œ ä <”ìDœôL¤ÜÜ‹X6Ó12.à ` àSection€744.1€is€amended€by€revising€paragraphs€(a)(1)€and€(b)(2)€to€read€as€follows:€Ð p À ÐÓ ¨ýÓÓ °ÓÓ<(Ü Ü4Œ ä <”ìDœôL¤Œ Œ ‰X<Óà  àÌò òðð744.1€General€provisions.Ð Ð  Ðó ó(a)(1)€òòIntroduction.óó€€In€this€part,€references€to€the€EAR€are€references€to€15€CFR€chapter€VII,€subchapterÐ €Ð  ÐC.€€This€part€contains€prohibitions€against€exports,€reexports,€and€selected€transfers€to€certain€end„usersÐ 0€  Ðand€end„uses€as€introduced€under€General€Prohibition€Five€(End„use/End„users)€and€Nine€(Orders,Ð à0 ÐTerms,€and€Conditions),€unless€authorized€by€BIS.€€Sections€744.2,€744.3,€744.4€prohibit€exports,Ð à Ðreexports€and€transfers€(in„country)€of€items€subject€to€the€EAR€to€defined€nuclear,€missile,€and€chemicalÐ @ Ðand€biological€proliferation€activities.€€Section€744.5€prohibits€exports,€reexports€and€transfers€(in„Ð ð@ Ðcountry)€of€items€subject€to€the€EAR€to€defined€nuclear€maritime€end„uses.€€Section€744.6€prohibitsÐ  ð Ðcertain€activities€by€U.S.€persons€in€support€of€certain€nuclear,€missile,€chemical,€or€biological€end„uses.€Ð P  ÐSection€744.7€prohibits€exports€and€reexports€of€certain€items€for€certain€aircraft€and€vessels.€€SectionÐ P Ð744.9€prohibits€U.S.€persons€from€providing€technical€assistance€to€certain€foreign€persons€seeking€toÐ °  Ðdevelop€or€manufacture€certain€encryption€commodities€or€software.€€Section€744.10€prohibits€exportsÐ `!°" Ðand€reexports€of€any€item€subject€to€the€EAR€to€Russian€entities,€included€in€Supplement€No.€4€of€thisÐ #`$ Ðpart.€€Ô#†&ˆ“%%!&ˆ“¹#ÔSection€744.11€imposes€license€requirements,€to€the€extent€specified€in€Supplement€No.€4€to€thisÐ À$ & Ðpart€on€entities€listed€in€Supplement€No.€4€to€this€part€for€activities€contrary€to€the€national€security€orÐ p&À!( Ðforeign€policy€interests€of€the€United€States.€Ô‡!&ˆ“%%&ˆ“Ô€Sections€744.12,€744.13€and€744.14€prohibit€exports€andÐ  (p#* Ðreexports€of€any€item€subject€to€the€EAR€to€persons€designated€as€Specially€Designated€GlobalÐ Ð) %, ÐTerrorists,€Specially€Designated€Terrorists,€or€Foreign€Terrorist€Organizations,€respectively.€€Ô#†&ˆ“%%!&ˆ“ÕÁ#ÔSectionÐ €+Ð&. Ð744.16€sets€forth€the€right€of€a€party€listed€in€Supplement€No.€4€to€this€part€to€request€that€its€listing€beÐ ° Ðremoved€or€modified.Ô‡!&ˆ“%%&ˆ“Ô€€Section€744.19€sets€forth€BISððs€licensing€policy€for€applications€for€exports€orÐ `° Ðreexports€when€a€party€to€the€transaction€is€an€entity€that€has€been€sanctioned€pursuant€to€any€of€threeÐ ` Ðspecified€statutes€that€require€certain€license€applications€to€be€denied.€€Section€744.20€requires€a€license,Ð À  Ðto€the€extent€specified€in€Supplement€No.€4€to€this€part,€for€exports€and€reexports€of€items€subject€to€theÐ p À ÐEAR€destined€to€certain€sanctioned€entities€listed€in€Supplement€No.€4€to€this€part.€Section€744.15Ð  p  Ðdescribes€restrictions€on€exports€and€reexports€to€persons€named€in€general€orders.€€In€addition,€theseÐ Ð  Ðsections€include€license€review€standards€for€export€license€applications€submitted€as€required€by€theseÐ €Ð  Ðsections.€€It€should€also€be€noted€that€part€764€of€the€EAR€prohibits€exports,€reexports€and€certainÐ 0€  Ðtransfers€of€items€subject€to€the€EAR€to€denied€parties.Ð à0 Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð à ÐÌ(b)€*€€€€€*€€€€€*Ð ð@ Ðà  à(2)€€òòDetermine€applicability.óó€€Second,€determine€whether€any€of€the€end„use€and€end„userÐ  ð Ðprohibitions€described€in€this€part€are€applicable€to€your€planned€export,€reexport,€transfer€(in„country)€orÐ P  Ðother€activity.€€See€Supplement€No.€1€to€part€732€for€guidance.€€For€exports,€reexports€or€transfers€(in„Ð P Ðcountry)€that€are€in€transit€at€the€time€you€are€informed€by€BIS€that€a€license€is€required€in€accordanceÐ °  Ðwith€ðððð744.2(b),€744.3(b),€744.4(b)€or€744.6(b)€of€the€EAR,€you€may€not€proceed€any€further€with€theÐ `!°" Ðtransaction€unless€you€first€obtain€a€license€from€BIS€(see€part€748€of€the€EAR€for€instructions€on€how€toÐ #`$ Ðapply€for€a€license).€€The€provisions€of€ðð748.4(d)(2)€shall€not€apply€to€license€applications€submittedÐ À$ & Ðpursuant€to€a€notification€from€BIS€that€occurs€while€an€export,€reexport,€or€transfer€(in„country)€is€inÐ p&À!( Ðtransit.€Ð  (p#* Ð*€€€€€*€€€€€*€€€€€€*€€€€€*Ð Ð) %, ÐÐ €+Ð&. ÐÓ ÚýÓÓ ~ÓÓ9%Z Z Œ ä <”ìDœôL¤ÜÜ‹X9Ó13.à . àSection€744.2€is€amended€by€revising€paragraph€(a)€introductory€text€and€€€€€€€€€Ð ° ÐÓ &ÚýÓÓ X~ÓÓ<%4 4Œ ä <”ìDœôL¤Z Z Œ ‰X<Óparagraph€(b)€to€read€as€follows:Ð `° ÐÓ &ÓÓ XÓÓ<(Ü Ü4Œ ä <”ìDœôL¤44ŠX<ÓÌò òðð744.2€Restrictions€on€certain€nuclear€end„uses.Ð À  ÐÔR p ÀÔÓ RÓó ó(a)€òòGeneral€prohibitionóó.€In€addition€to€the€license€requirements€for€items€specified€on€the€CCL,€you€mayÐ   Ðnot€export,€reexport,€or€transfer€(in„country)€to€any€destination,€other€than€countries€in€Supplement€No.€3Ð r   Ðto€this€part,€an€item€subject€to€the€EAR€without€a€license€if,€at€the€time€of€export,€reexport,€or€transfer€(in„Ð "r  Ðcountry)€you€knowòò1óó€that€the€item€will€be€used€directly€or€indirectly€in€any€one€or€more€of€the€followingÐ Ò"  Ðactivities€described€in€paragraphs€(a)(1),€(a)(2),€and€(a)(3)€of€this€section:Ð ‚Ò  Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð „Ô ÐÔRØ(†ÖÔ(b)€òòAdditional€prohibition€on€persons€informed€by€BIS.óó€BIS€may€inform€persons,€either€individually€byÐ Ø( Ðspecific€notice€or€through€amendment€to€the€EAR,€that€a€license€is€required€for€a€specific€export,Ð ˆØ Ðreexport,€or€transfer€(in„country),€or€for€the€export,€reexport,€or€transfer€(in„country)€of€specified€items€toÐ 8ˆ Ða€certain€end„user,€because€there€is€an€unacceptable€risk€of€use€in,€or€diversion€to,€the€activities€specifiedÐ è8 Ðin€paragraph€(a)€of€this€section.€€Specific€notice€is€to€be€given€only€by,€or€at€the€direction€of,€the€DeputyÐ ˜è ÐAssistant€Secretary€for€Export€Administration.€When€such€notice€is€provided€orally,€it€will€be€followedÐ H˜ Ðby€a€written€notice€within€two€working€days€signed€by€the€Deputy€Assistant€Secretary€for€ExportÐ ø H  ÐAdministration.€However,€the€absence€of€any€such€notification€does€not€excuse€persons€from€complianceÐ ¨"ø" Ðwith€the€license€requirements€of€paragraph€(a)€of€this€section.Ð X$¨$ Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð Z&ª!& ÐÌà  à14.à ` àSection€744.3€is€amended:€Ð ^*®%* Ðà  àà ` àa.€à ¸ àBy€revising€paragraph€(a)€introductory€text;Ð ° Ðà  àà ` àb.€à ¸ àBy€revising€paragraph€(b);€andÐ ² Ðà  àà ` àc.€à ¸ àBy€revising€paragraph€(d)(1)€to€read€as€follows:à È àà  àà x àÐ ´ Ðà  àÌò òðð744.3€Restrictions€on€certain€rocket€systems€(including€ballistic€missile€systems€and€space€launchÐ f ¶ Ðvehicles€and€sounding€rockets)€and€unmanned€air€vehicles€(including€cruise€missile€systems,€targetÐ f  Ðdrones€and€reconnaissance€drones)€end„uses.Ð Æ  ÐÔRj È Ôó ó(a)€òòGeneral€prohibitionóó.€In€addition€to€the€license€requirements€for€items€specified€on€the€CCL,€you€mayÐ j  Ðnot€export,€reexport,€or€transfer€(in„country)€an€item€subject€to€the€EAR€without€a€license€if,€at€the€timeÐ Ê Ðof€export,€reexport€or€transfer€(in„country)€you€know€that€the€item:Ð zÊ Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð |Ì Ð(b)€òòAdditional€prohibition€on€persons€informed€by€BISóó.€€BIS€may€inform€persons,€either€individually€byÐ ~Î Ðspecific€notice€or€through€amendment€to€the€EAR,€that€a€license€is€required€for€a€specific€export,€reexportÐ .~ Ðor€transfer€(in„country)€or€for€the€export,€reexport,€or€transfer€(in„country)€of€specified€items€to€a€certainÐ Þ. Ðend„user,€because€there€is€an€unacceptable€risk€of€use€in,€or€diversion€to,€the€activities€specified€inÐ ŽÞ Ðparagraphs€(a)(1)€or€(a)(2)€of€this€section.€€Specific€notice€is€to€be€given€only€by,€or€at€the€direction€of,Ð > Ž Ðthe€Deputy€Assistant€Secretary€for€Export€Administration.€When€such€notice€is€provided€orally,€it€will€beÐ î!>  Ðfollowed€by€a€written€notice€within€two€working€days€signed€by€the€Deputy€Assistant€Secretary€forÐ ž#î" ÐExport€Administration.€However,€the€absence€of€any€such€notification€does€not€excuse€persons€fromÐ N%ž $ Ðcompliance€with€the€license€requirements€of€paragraphs€(a)(1),€(a)(2),€or€(a)(3)€of€this€section.Ð þ&N"& Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð )P$( Ð(d)òò€License€review€standards.Ð +R&* Ðò òóóà  àó ó(1)€Applications€to€export,€reexport€or€transfer€(in„country)€the€items€subject€to€this€section€willÐ ° Ðbe€considered€on€a€case„by„case€basis€to€determine€whether€the€export,€reexport€or€transfer€(in„country)Ð `° Ðwould€make€a€material€contribution€to€the€proliferation€of€certain€rocket€systems,€or€unmanned€airÐ ` Ðvehicles.€€When€an€export,€reexport€or€transfer€(in„country)€is€deemed€to€make€a€material€contribution,Ð À  Ðthe€license€will€be€denied.€€Ð p À Ðò òà  àÌó ó*€€€€€€*€€€€€*€€€€€*€€€€€*Ð tÄ  ÐÌà  à15.€€€€€€Section€744.4€is€amended:€Ð xÈ Ðà  àà ` àa.€à ¸ àBy€revising€paragraph€(a);€andÐ zÊ Ðà  àà ` àb.€à ¸ àBy€revising€paragraph€(d)(1)€to€read€as€follows:à È àà  àÐ |Ì ÐÌò òðð€744.4€Restrictions€on€certain€chemical€and€biological€weapons€end„usesó ó.Ð €Ð Ð(a)€€òòGeneral€prohibitionóó.Ð ŠÚ ÐIn€addition€to€the€license€requirements€for€items€specified€on€the€CCL,€you€may€not€export,€reexport,€orÐ ŒÜ Ðtransfer€(in„country)€an€item€subject€to€the€EAR€without€a€license€if,€at€the€time€of€export,€reexport,€orÐ  Ð(c)€*€€€€€*€€€€€*Ð ð@ ÐÓ RÓà  à(2)€Security€Safeguard€Plan€requirement.€€€The€United€States€requires€security€safeguards€forÐ òB Ðexports,€reexports,€and€transfers€(in„country)€of€High€Performance€Computers€(HPCs)€to€ensure€that€theyÐ ¢ò Ðare€used€for€peaceful€purposes.€€If€you€are€submitting€a€license€application€for€an€export,€reexport,€or€in„Ð R!¢  Ðcountry€transfer€of€a€high€performance€computer€to€or€within€a€destination€in€Computer€Tier€3€(seeÐ #R" Ððð740.7(c)(1)€of€the€EAR)€or€to€Cuba,€Iran,€North€Korea,€Sudan,€or€Syria€you€must€include€with€yourÐ ²$ $ Ðlicense€application€a€security€safeguard€plan€signed€by€the€end„user,€who€may€also€be€the€ultimateÐ b&²!& Ðconsignee.€€This€requirement€also€applies€to€exports,€reexports,€and€transfers€(in„country)€ofò òòò€ó óóócomponentsÐ (b#( Ðâ âor€electronic€assemblies€to€upgrade€existing€ð ðcomputerðð€installations€in€those€countries.€€A€sampleÐ Æ)%* Ðsecurity€safeguard€plan€is€posted€on€BIS's€webpage€at€Ð ° ÐòòÔÿÔhttp://www.bis.doc.gov/hpcs/SecuritySafeguardPlans.htmlóóÔÿtÔ.ò òòò€Ð `° Ðâ âó óóó*€€€€€*€€€€€*€€€€€*€€€€€*Ð d Ðò òòòÌóóPart€752€„€[AMENDED]Ð p À ÐÓ RÓó óà  à20.€à ` àThe€authority€citation€for€15€CFR€part€752€is€revised€to€read€as€follows:Ð  p  ÐÓ RÓà  àò òAuthority:ó ó€Ô‡"&ˆ“%%&ˆ“Ô50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€E.O.€13020,€61€FR€54079,€3Ð "r  ÐCFR,€1996€Comp.€p.€219;Ô#†&ˆ“%%"&ˆ“&#ÔÔ‡2&ˆ“%%&ˆ“Ô€E.O.€13222,€66€FR€44025,Ô#†&ˆ“%%2&ˆ“ï#ÔÔ‡"&ˆ“%%&ˆ“Ô€3€CFR,€2001€Comp.,€p.€783;€Notice€of€July€23,Ð Ú*  Ð2008,€73€FR€43603€(July€25,€2008)Ô#†&ˆ“%%"&ˆ“J#ÔÔ‡"&ˆ“%%&ˆ“Ô.Ô#†&ˆ“%%"&ˆ“ð#ÔÔ‡"&ˆ“%%&ˆ“Ô€Ô#†&ˆ“%%"&ˆ“3#ÔÐ ŠÚ  Ðò òÌÓ RÓÓ ¨ýÓÓ °ÓÓ9%Œ 4Œ ä <”ìDœôL¤ÜÜ‹X9Óó ó21.à ` àSection€752.5€is€amended€by€revising€the€undesignated€paragraph€at€the€Ð ê: ÐÓ ¨ýÓÓ °ÓÓ<(Ü Ü4Œ ä <”ìDœôL¤Œ 4ŠX<Óà  àà ` àend€of€(c)(8)(ii)€to€read€as€follows:Ð ì< ÐÌò òðð752.5ó ó€ò òSteps€you€must€follow€to€apply€for€an€SCLó ó.Ð ð@ Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð úJ Ð(c)€*€€€€€*€€€€€*Ð üL Ðà  à(8)€*€€€€€*€€€€€*Ð þ!N  Ðà  àà ` à(ii)€*€€€€€*€€€€€*Ð $P" Ðà  àà ` àð ðNo€chemicals€or€chemical€equipment€received€under€this€Special€ComprehensiveÐ &R!$ ÐLicense€will€be€transferred,€resold,€or€reexported€to€aò ò€ó ódestination€or€end„user€that€requires€a€license,Ð ²'#& Ðunless€the€new€end„user€has€been€approved€by€the€Bureau€of€Industry€and€Security,€and€in€no€case€willÐ j)º$( Ðthe€items€be€transferred,€resold,€or€reexported€to€a€party€who€is€not€the€end„user.ðð€Ð +j&* Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð ° Ðà  àà ` àÌÓ ¨ýÓÓ °ÓÓ6"Œ Œ ä <”ìDœôL¤ÜÜ‹X6Ó22.€à ` àSection€752.8€is€amended€by€revising€the€last€sentence€of€paragraph€(a)€to€read€asÐ ´ Ðfollows:Ð d ´ ÐÓ ¨ýÓÓ °ÓÓ<(Ü Ü4Œ ä <”ìDœôL¤Œ Œ ‰X<ÓÌò òðð752.8ó ó€ò òSCL€application€review€processó ó.Ð h¸  Ð(a)€*€€€€€*€€€€€*€€€€€€€In€reviewing€and€approving€a€specific€SCL€request,€BIS€retains€the€right€to€limit€theÐ r  Ðeligibility€of€items€or€to€prohibit€the€export,€reexport,€or€transfer€(in„country)€of€items€under€the€SCL€toÐ "r  Ðspecific€firms,€individuals,€or€countries.Ð Ò" Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð Ô$ ÐÌà  à23.€à ` àSection€752.16€is€amended€by€revising€paragraph€(a)(1)(v)€to€read€as€follows:Ð Ø( Ðððò ò752.16€Administrative€actionsó ó.€Ð Ú* Ð(a)(1)€*€€€€€*€€€€€*Ð ä4 Ðà  àà ` à(v)€Require€that€certain€exports,€reexports,€or€transfers€(in„country)€be€individuallyÐ æ6 Ðauthorized€by€BIS;Ð –!æ Ð*€€€€€*€€€€€*€€€€€*€€€€€*€Ð ˜#è  ÐÓ ¨ýÓÓ °ÓÓ6"Œ Œ ä <”ìDœôL¤ÜÜ‹X6Ó24.€à ` àSupplement€No.€3€to€part€752€is€amended€by€revising€Block€(8)€paragraph€(iv)€to€read€asÐ š%ê " Ðfollows:Ð J'š"$ Ðâ âÓ ¨ýÓÓ °ÓÓ<(Ü Ü4Œ ä <”ìDœôL¤Œ Œ ‰X<Óò òÐ L)œ$& ÐSupplement€No.€3€to€Part€752€„€INSTRUCTIONS€ON€COMPLETING€FORM€BIS€„752Ð ° Ðâ âð ðSTATEMENT€BY€CONSIGNEE€IN€SUPPORT€OF€SPECIAL€COMPREHENSIVE€LICENSEððÐ `° Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð b² ÐBlock€8:ò ò€€Disposition€or€Use€of€Items.€Ð d ´ Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð n ¾ Ðà  àà ` à(iv)€Item€(d):€€Complete€this€Block€if€your€company€plans€to€transfer€or€resell€within€theÐ pÀ  Ðcountry€of€import.€€State€the€end„use€of€your€customers.€€If€you€plan€to€transfer€to€end„users€that€requireÐ  p  Ðprior€approval€by€BIS,€complete€and€attach€Form€BIS„748P„B,€End„User€Appendix.€Ð Ð  Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð Ò" Ðò òPART€760€„€[AMENDED]Ð Ô$ Ðó óà  à25.€à ` àThe€authority€citation€for€15€CFR€part€760€is€revised€to€read€as€follows:€Ð Ö& ÐÓ RÓò òà  àAuthority:ó ó€Ô‡"&ˆ“%%&ˆ“Ô50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;Ô#†&ˆ“%%"&ˆ“T#ÔÔ‡2&ˆ“%%&ˆ“Ô€E.O.€13222,€66€FR€44025,Ô#†&ˆ“%%2&ˆ“Ö#ÔÔ‡"&ˆ“%%&ˆ“Ô€3Ð Ø( ÐCFR,€2001€Comp.,€p.€783;€Notice€of€July€23,€2008,€73€FR€43603€(July€25,€2008)Ô#†&ˆ“%%"&ˆ“1#ÔÔ‡"&ˆ“%%&ˆ“Ô.Ô#†&ˆ“%%"&ˆ“×#ÔÔ‡"&ˆ“%%&ˆ“Ô€Ô#†&ˆ“%%"&ˆ“#ÔÐ à ÐÌÓ RÓà  à26.€à ` àSection€760.1€is€amended€by€revising€the€first€and€second€sentences€of€paragraphÐ ð@ Ð(b)(4)(viii)€to€read€as€follows:Ð   ð ÐÌò òðð760.1€Definitions.Ð ¤$ô" Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð ¦&ö!$ Ð(b)€*€€€€*€€€€€*Ð ¨(ø#& Ðà  à(4)€*€€€*€€€*Ð ª*ú%( Ðà  àà ` à(viii)€At€the€request€of€country€Y,€A,€an€individual€employed€by€U.S.€company€B,€isÐ ° Ðassigned€to€company€C€as€an€employee.€€C€is€a€foreign€company€owned€and€controlled€by€country€Y.€A,€aÐ `° ÐU.S.€national€who€will€reside€in€Y,€has€agreed€to€the€assignment€provided€he€is€able€to€retain€hisÐ ` Ðinsurance,€pension,€and€other€benefits.€€Ð À  Ð*€€€€€*€€€€€*€Ð   Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð Ä   ÐÌà  à27.€à ` àSection€760.3€is€amended€by€revising€the€first€sentence€of€paragraph€(f)(4)(i)€to€read€asÐ È  Ðfollows:Ð xÈ ÐÌò òðð760.3€Exceptions€to€prohibitions.Ð |Ì Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð ~Î Ð(f)€*€€€€€*€€€€€*Ð €Ð Ðà  à(4)€*€€€€€*€€€€€*Ð ‚Ò Ðà  àà ` à(i)€A,€a€U.S.€individual€employed€by€B,€a€U.S.€manufacturer€of€sporting€goods€with€aÐ „Ô Ðplant€in€boycotting€country€Y,€wishes€to€obtain€a€work€visa€so€that€he€may€be€assigned€to€the€plant€in€Y.€Ð 4!„ Ð*€€€€€*€€€€€*€Ð ä"4  Ð*€€€€€*€€€€€*€€€€€*€€€€€*Ð æ$6 " ÐÌò òPART€772€„€[AMENDED]Ð ê(:$& Ðó óà  à28.€à ` àThe€authority€citation€for€15€CFR€part€772€continues€to€read€as€follows:Ð ì*<&( ÐÓ RÓà  àò òAuthority:ó ó€Ô‡"&ˆ“%%&ˆ“Ô50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;Ô#†&ˆ“%%"&ˆ“Ž#ÔÔ‡2&ˆ“%%&ˆ“Ô€E.O.€13222,€66€FR€44025,Ô#†&ˆ“%%2&ˆ“ #ÔÔ‡"&ˆ“%%&ˆ“Ô€3Ð ° ÐCFR,€2001€Comp.,€p.€783Ô#†&ˆ“%%"&ˆ“k #ÔÔ‡"&ˆ“%%&ˆ“Ô;€Notice€of€July€23,€2008,€73€FR€43603€(July€25,€2008)Ô#†&ˆ“%%"&ˆ“Û #ÔÔ‡"&ˆ“%%&ˆ“Ô.Ô#†&ˆ“%%"&ˆ“S!#ÔÔ‡"&ˆ“%%&ˆ“Ô€Ô#†&ˆ“%%"&ˆ“–!#ÔÐ h¸ Ðò òÌÓ RÓà  àó ó29.€à ` àSection€772.1€is€amended€by€revising€the€existing€definition€of€ð ðtransferðð,€as€set€forthÐ È  Ðbelow:Ð x È ÐÌò òðð€772.1€Definitions€of€terms€as€used€in€the€Export€Administration€Regulations€(EAR).Ð |Ì  Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð ~Î  ÐòòòòTransferóóóó.€€A€shipment,€transmission,€or€release€to€any€person€of€items€subject€to€the€EAR€either€withinÐ €Ð Ðthe€United€States€or€outside€the€United€States.€€òòòòIn„country€transfer€/€transfer€(in„country)óóóó.€€The€shipment,Ð 0€ Ðtransmission,€or€release€of€items€subject€to€the€EAR€from€one€person€to€another€person€that€occursÐ à0 Ðoutside€the€United€States€within€a€single€foreign€country.Ð à ÐÌÓ<(Ü Ü4Œ ä <”ìDœôL¤ÜÜ‹X<Óò òNote:ó ó€This€definition€of€transfer€does€not€apply€to€ðð750.10€or€Supplement€No.€8€to€part€760€of€the€EAR.€Ð ”ä ÐThe€term€ð ðtransferðð€may€also€be€included€on€licenses€issued€by€BIS.€€In€that€regard,€the€changes€that€canÐ Lœ Ðbe€made€to€a€BIS€license€are€the€non„material€changes€described€in€ðð750.7(c).€€Any€other€change€to€a€BISÐ üL Ðlicense€without€authorization€is€a€violation€of€the€EAR.€€See€ðððð750.7(c)€and€764.2(e).ò òÐ ¬!ü  Ðó ó*€€€€€*€€€€€*€€€€€*€€€€€*Ð ®#þ" ÐÌDATED:Ð ²'#& ÐÌChristopher€R.€WallÐ ¶+'* ÐAssistant€SecretaryÐ ° ÐÓ RÓfor€Export€Administration€Ð ² ÐÌÌÌÔ#†Xô X%&ˆ“U#Ô