BIS Publishes Corrections to 9 EAR Provisions

Section 740.1: The acronym “AES” is removed from the heading of 15 CFR 740.1(d), so that the heading reads “Shippers Export Declaration or Automated Export System Record”.

Section 742.15: The note to the introductory text of paragraph (b) of Section 742.15 of the EAR is moved so that it comes after paragraph (b) instead of paragraph (b)(3). Also, BIS added the following note under the introductory paragraph of paragraph (b)(3):

“Once a mass market classification request is accepted in SNAP-R, you may export and reexport the encryption commodity or software under License Exception ENC as ECCN 5A002 or 5D002, whichever is applicable, to any end-user located or headquartered in a country listed in supplement No. 3 to part 740 as authorized by Section 740.17(b) of the EAR, while the mass market classification is pending review with BIS.”

Supplement No. 2 to Part 742: Paragraphs (c)(10)(i)(A) and (B), as well as Paragraphs (c)(27)(i)(A) and (B), of Supplement No. 2 to Part 742 (Anti-Terrorism Controls: North Korea, Syria and Sudan Contract Sanctity Dates and Related Policies) are removed. These provisions had set contract sanctity dates for cryptographic, cryptoanalytic, and cryptologic equipment, as well as semiconductor manufacturing equipment. BIS is also adding new paragraph (c)(25)(i) to Supplement No. 2 to Part 742 to say the following:

“(i) A license is required for the following telecommunications equipment: (A) Radio relay systems or equipment operating at a frequency equal to or greater than 19.7 GHz or “special efficiency” greater than 3 bit/s/Hz; (B) Fiber optic systems or equipment at a wavelength greater than 1000nm; (C) “Telecommunications transmission systems” or equipment with a “digital transfer rate” at the highest multiplex level exceeding 45 Mb/s.”

Section 740.5: Paragraph (b) of Section 740.5, “other party authorized to receive license,” is amended to include the sentence “Designation of another party to receive the license does not alter the responsibilities of the applicant, licenses, or exporter.”

Supplement No. 2 to Part 748: A sentence in paragraph (o)(3)(i), “Special provisions -- Technology controlled for national security reasons,” is corrected to refer to Country Group E:1 instead of E:2.

Section 750.7: Paragraph (c)(ii), which defines a non-material change that does not require submission of a “Replacement” license or any other notification to BIS, is corrected to refer to an increase in quantity if permitted by shipping tolerances (the paragraph formerly referred to “an increase in quality permitted under the shipping tolerance”).

Supplement No. 1 to Part 752. In the instructions for completing form BIS-748P, Multipurpose Application for Requests for Special Comprehensive Licenses, instructions for Block 11 are changed to refer to “SF #” instead of “SF ##.”

Supplement No. 3 to Part 752. In the instructions for completing form BIS-752 “Statement by Consignee in Support of Special Comprehensive License,” instructions for Block 6 are changed to refer to BIS-748-P-A instead of BIS-748-P-B.

Supplement No. 7 to Part 760: Supplement No. 7 to Part 760, the interpretation of “Prohibited Refusal To Do Business,” is amended to add the following fourth paragraph:

“The United States person may also provide certain services in advance of the unilateral selection by the boycotting country, such as the compilation of lists of qualified suppliers, so long as such services are customary to the type of business the United States person is engaged in, and the services rendered are completely non-exclusionary in character (i.e., the list of qualified suppliers would have to include the supplier whose goods had previously been rejected by the boycotting country, if they were fully qualified). See § 760.2(a)(6) of this part for a discussion of the requirements for the provision of these services.”