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November 05, 2007 

BIS Publishes Final Rule Amending EAR and CCL to Implement Wassenaar List Revisions

As promised at Update 2007, the Bureau of Industry and Security (BIS) today published a final rule in the Federal Register making the the necessary changes to to the Commerce Control List (CCL) and Export Administration Regulations (EAR) to implement the Wassenaar List revisions that were agreed upon in the December 2006 Wassenaar Arrangement Plenary Meeting. This final rule also adds and expands unilateral U.S. export controls and national security export controls on certain items to make them consistent with the amendments made to implement the Wassenaar Arrangement's decisions. In addition, the final rule removes the remaining references to "Composite Theoretical Performance (CTP)'' and "Millions of Theoretical Operations Per Second (MTOPS)'' in the EAR, which is consistent with agreements made by the Wassenaar Arrangement
with regard to microprocessors.

Today's final rule makes a number of changes to the EAR by amending certain entries that are controlled for national security reasons in Categories 1, 2, 3, 5 Part I (telecommunications), 6, 7, 8, and 9; adds new entries to the Commerce Control List (CCL); amends certain EAR Definitions; adds new definitions to the EAR; and adds a new Statement of Understanding on source code.

The following is a summary of the changes made by today's final rule:

  • Imposes new controls and expands NS Column 1 controls by imposing a license requirement under section 742.4(a) of the EAR for exports and reexports to all destinations, except Canada, of certain commodities (and related software and technology) described in ECCNs 1E002.g, 3E001, 7A001, 7A002.a and .c, 7A003.d, 7D001, 7D003, 7E001, 7E002, 7E004.a.7, 9D004.f and .g.
  • Imposes new controls and expands NS Column 2 controls. This rule imposes a license requirement under section 742.4(a) of the EAR for exports and reexports of commodities (and related software and technology) described in 1C005.a, 1C005.b.1, 1C005.b.2, 1C005.c, 1D003, 2B002.c, 2B002.d, 3A001.b.9, 3A001.e.4, 3A001.g, 3B001.f.2, 3B001.i, 3C005, 5A001.g, 6A008.a, 7A008, 8A002.a, 8A002.a.4 (components) to destinations that are not Country Group A:1 destinations, or that are not cooperating countries.
  • Imposes new controls and expands antiterrorism (AT) controls on the export and reexport of commodities (and related software and technology) controlled under 1C005.a, 1C005.b.1, 1C005.b.2, 1C005.c, 1D003, 1E002.g, 2B002.d.2, 2B002.d.3, 3A001.b.9, 3A001.e.4, 3A001.g, 3B001.f.2, 3B001.i, 3C005, 3E001, 5A001.g, 6A008.a, 7A001, 7A002.a and .c, 7A003.d, 7A008, 7D001, 7D003.a and .b, 7E001, 7E002, 7E004.a.7, 8A002.a, 8A002.a.4 (components), and 9D004.f and .g for AT reasons to Cuba, Iran, North Korea, Sudan and Syria;
  • Revises several entries on the CCL and adds a number of new ECCNs to the CCL.
  • Amends the EAR to remove the terms "Composite theoretical performance'' and CTP , revises the definition of the terms "Drift rate'' and "Peak power'' and adds definitions for a number of technical terms.
  • Adds a Statement of Understanding (SOU) addressing source code explaining that source code may be controlled in either a software or technology entry.
While this final rule is effective today, it contains a "savings clause" providing that shipments of items removed from license exception eligibility or eligibility for export without a license as a result of this regulatory action that were en route to their destination may proceed to that destination under the previous license exception eligibility or without a license so long as they have been exported from the United States before December 5, 2007. Any items not actually exported before midnight on December 5, 2007, require will require a license in accordance with this regulation.

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