[Federal Register: August 31, 2004 (Volume 69, Number 168)]
[Rules and Regulations]               
[Page 52991-52993]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31au04-1]                         


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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
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to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
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[[Page 52991]]



DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 770 and 774

Docket No. 040810235-4235-01

RIN 0694-AC91

 
Clarification of Export Controls on Military Vehicles and Parts

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: This rule clarifies the export controls on parts and 
components of certain military ground vehicles, adds a new class of 
vehicles to the Commerce Control List (CCL) and provides guidance for 
classifying ground vehicles that are subject to the Export 
Administration Regulations and distinguishing those vehicles from those 
that are subject to the International Traffic in Arms Regulations.

DATES: This rule is effective August 31, 2004.

FOR FURTHER INFORMATION CONTACT: Gene Christiansen, in the Office of 
Strategic Trade and Foreign Policy Controls, Bureau of Industry and 
Security, U.S. Department of Commerce at (202) 482-2984.

SUPPLEMENTARY INFORMATION: The Bureau of Industry and Security (BIS) 
maintains the Commerce Control List (CCL), which identifies those items 
subject to Department of Commerce export licensing requirements based 
on their characteristics. Certain entries on the CCL implement 
multilateral national security controls established by the Wassenaar 
Arrangement on Export Controls for Conventional Arms and Dual-Use Goods 
and Technologies (the Wassenaar Arrangement). The Wassenaar Arrangement 
controls strategic items with the objective of improving regional and 
international security and stability.
    One list maintained by the Wassenaar Arrangement is the Munitions 
List. The United States administers export controls on these Wassenaar 
Arrangement Munitions List items by making certain items subject to the 
export licensing jurisdiction of the Directorate of Defense Trade 
Controls in the Department of State, and listed on the United States 
Munitions List (USML), and other items subject to the export licensing 
jurisdiction of the Bureau of Industry and Security in the Department 
of Commerce, listed on the CCL.
    This rule revises Export Control Classification Number (ECCN) 9A018 
on the CCL of the Export Administration Regulations to make clear that 
this ECCN applies to parts and components as well as to vehicles. This 
rule updates ECCN 9A018 to include unarmed all-wheel drive vehicles 
capable of off-road use that have been manufactured or fitted to 
provide a specified level of ballistic protection. This rule also 
clarifies that ECCN 9A018 does not include vehicles that are on the 
USML.
    This rule also revises Interpretation 8 in Part 770 of the Export 
Administration Regulations (EAR), which provides guidance relating to 
ECCN 9A018.b. Revised Interpretation 8 eliminates explanations of terms 
that are no longer used in the EAR. It employs language from the 
Wassenaar Arrangement Munitions List to distinguish military vehicles 
from civil vehicles. It also provides guidance to distinguish military 
vehicles subject to the export licensing jurisdiction of the 
Directorate of Defense Trade Controls from those subject to the export 
licensing jurisdiction of the Bureau of Industry and Security.
    The Export Administration Act of 1979 (the Act) provides authority 
to administer dual-use export controls. Although the Act expired on 
August 20, 2001, Executive Order 13222 of August 17, 2001 (3 CFR, 2001 
Comp., p. 783 (2002)), as extended by the notice of August 7, 2003 (3 
CFR, 2003 Comp., p. 328 (2004)), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act.

Savings Clause

    Items eligible for export or reexport without a license or under a 
License Exception prior to publication of this rule and for which this 
rule imposes a license requirement or removes that License Exception 
eligibility may be exported or reexported without a license or under 
that License Exception if they are on dock for loading, on lighter, 
laden aboard an exporting carrier, or en route aboard a carrier to a 
port of export, pursuant to actual orders for export or reexport by 
September 14, 2004, and are actually exported or reexported September 
30, 2004. Any such items not meeting these conditions require a license 
in accordance with this rule.

Rulemaking Requirements

    1. This rule has been determined to be not significant for purposes 
of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with a collection of information, subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
involves collections of information subject to the PRA. These 
collections have been approved by the Office of Management and Budget 
(OMB) under control number 0694-0088, ``Multi-Purpose Application,'' 
which carries a burden hour estimate of 58 minutes to prepare and 
submit. Send comments regarding these burden estimates or any other 
aspect of these collections of information, including suggestions for 
reducing the burden, to David Rostker, OMB Desk Officer, by e-mail at 
david_rostker@omb.eop.gov or by fax to (202)395-7285; and to the 

Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, P.O. Box 273, Washington, DC 20044.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (Sec. 5 U.S.C. 553(a)(1)). Further, no 
other law requires that a notice of

[[Page 52992]]

proposed rulemaking and an opportunity for public comment be given for 
this final rule. Because a notice of proposed rulemaking and an 
opportunity for public comment are not required to be given for this 
rule under 5 U.S.C. 553 or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Therefore, this regulation is issued in final form. 
Although there is no formal comment period, public comments on this 
regulation are welcome on a continuing basis. Comments should be 
submitted to William H. Arvin, Regulatory Policy Division, Bureau of 
Industry and Security, U.S. Department of Commerce, Room 2705, 14th 
Street and Pennsylvania Avenue, NW., Washington, DC 20230.

List of Subjects in 15 CFR Parts 770 and 774

    Exports, Foreign trade.


0
Accordingly, part 770 and Supplement No. 1 to part 774 of the Export 
Administration Regulations (15 CFR parts 730-799) are amended as 
follows:

PART 770--AMENDED

0
1. The authority citation for part 770 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
6, 2004, 69 FR 48763 (August 10, 2004).


0
2. In Sec.  770.2 revise paragraph (h) to read as follows:


Sec.  770.2  Item Interpretations.

* * * * *
    (h) Interpretation 8: Ground vehicles. (1) The U.S. Department of 
Commerce, Bureau of Industry and Security has export licensing 
jurisdiction over ground transport vehicles (including trailers), 
parts, and components therefor specially designed or modified for non-
combat military use. Vehicles in this category are primarily transport 
vehicles designed or modified for transporting cargo, personnel and/or 
equipment, or to move other vehicles and equipment over land and roads 
in close support of fighting vehicles and troops. The U.S. Department 
of Commerce, Bureau of Industry and Security also has export licensing 
jurisdiction over unarmed all-wheel drive vehicles capable of off-road 
use which have been manufactured or fitted with materials to provide 
ballistic protection, including protection to level III (National 
Institute of Justice Standard 0108.01, September 1985) or better if 
they do not have armor described in 22 CFR part 121, Category XIII. In 
this section, and in ECCN 9A018, the word ``unarmed'' means not having 
weapons installed, not having mountings for weapons installed, and not 
having special reinforcements for mountings for weapons.
    (2) Modification of a ground vehicle for military use entails a 
structural, electrical or mechanical change involving one or more 
specially designed military components. Such components include, but 
are not limited to:
    (i) Pneumatic tire casings of a kind designed to be bullet-proof or 
to run when deflated;
    (ii) Tire inflation pressure control systems, operated from inside 
a moving vehicle;
    (iii) Armored protection of vital parts, (e.g., fuel tanks or 
vehicle cabs); and
    (iv) Special reinforcements for mountings for weapons.
    (3) Scope of ECCN 9A018.b. Ground transport vehicles (including 
trailers) and parts and components therefor specially designed or 
modified for non-combat military use are controlled by ECCN 9A018.b. 
Unarmed all-wheel drive vehicles capable of off-road use that are not 
described in paragraph (h)(4) of this section and which have been 
manufactured or fitted with materials to provide ballistic protection 
to level III (National Institute of Justice Standard 0108.01, September 
1985) or better are controlled by ECCN 9A018.b. ECCN 9A018.b. does not 
cover civil automobiles, or trucks designed or modified for 
transporting money or valuables, having armored or ballistic 
protection, even if the automobiles or trucks incorporate items 
described in paragraphs (h)(2) (i), (ii), or (iii) of this section. In 
this section, the term ``civil automobile'' means a passenger car, 
limousine, van or sport utility vehicle designed for the transportation 
of passengers and marketed through civilian channels in the United 
States, but does not include any all-wheel drive vehicle capable of 
off-road use which has been manufactured or fitted with materials to 
provide ballistic protection at level III (National Institute of 
Justice Standard 0108.01, September 1985) or better, nor does it 
include any vehicle described in paragraph (h)(4) of this section. 
Ground vehicles that are not described in paragraph (h)(4) of this 
section and that are not covered by either ECCN 9A018.b or 9A990 are 
EAR99, meaning that they are subject to the EAR, but not listed in any 
specific ECCN.
    (4) Related control. The Department of State, Directorate of 
Defense Trade Controls has export licensing jurisdiction for all 
military ground armed or armored vehicles and parts and components 
specific thereto as described in 22 CFR part 121, Category VII. The 
Department of State, Directorate of Defense Trade Controls also has 
export licensing jurisdiction for all-wheel drive vehicles capable of 
off-road use that have been armed or armored with articles described in 
22 CFR part 121 or that have been manufactured or fitted with special 
reinforcements for mounting arms or other specialized military 
equipment described in 22 CFR part 121.
* * * * *

SUPPLEMENT NO. 1 TO PART 774--AMENDED

0
3. The authority citation for part 774 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 
287c, 22 U.S.C. 3201 et seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 
185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. 
app. 466c; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec. 
221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 6, 2004, 69 FR 48763 (August 10, 2004).


0
4. Supplement 1 to part 774, Category 9, Export Control Classification 
Number 9A018 is amended by revising the heading, and the Related 
Controls and Items paragraphs in the List of Items Controlled section 
to read as follows:

9A018 Equipment on the Wassenaar Arrangement Munitions List

* * * * *

List of Items Controlled

    Unit: * * *
    Related Controls: (a) Parachute systems designed for use in 
dropping military equipment, braking military aircraft, slowing 
spacecraft descent, or retarding weapons delivery; (b) Instrument 
flight trainers for combat simulation; and (c) military ground armed or 
armored vehicles and parts and components specific thereto described in 
22 CFR part 121, Category VII; and all-wheel drive vehicles capable of 
off-road use that have been armed or armored with articles described in 
22 CFR part 121, Category XIII (See Sec.  770.2(h)--Interpretation 8) 
are all subject to the export licensing jurisdiction of the U.S. 
Department of State, Directorate of Defense Trade Controls.

Related Definitions * * *

    Items:
    a. Military trainer aircraft bearing ``T'' designations:

[[Page 52993]]

    a.1. Using reciprocating engines; or
    a.2. Turbo prop engines with less than 600 horse power (h.p.);
    a.3. T-37 model jet trainer aircraft; and
    a.4. Specially designed component parts.
    b. Ground transport vehicles (including trailers) and parts and 
components therefor designed or modified for non-combat military use 
and unarmed all-wheel drive vehicles capable of off-road use which have 
been manufactured or fitted with materials to provide ballistic 
protection to level III (National Institute of Justice standard 
0108.01, September 1985) or better. (See Sec.  770.2(h)--Interpretation 
8).
    c. Pressure refuelers, pressure refueling equipment, and equipment 
specially designed to facilitate operations in confined areas; and 
ground equipment, n.e.s, developed specially for military aircraft and 
helicopters, and specially designed parts and accessories, n.e.s.;
    d. Pressurized breathing equipment specially designed for use in 
military aircraft and helicopters;
    e. Military parachutes and complete canopies, harnesses, and 
platforms and electronic release mechanisms therefor, except such types 
as are in normal sporting use;
    f. Military instrument flight trainers, except for combat 
simulation; and components, parts, attachments and accessories 
specially designed for such equipment.

    Dated: August 25, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-19872 Filed 8-30-04; 8:45 am]

BILLING CODE 3510-33-P