[Federal Register: December 29, 2004 (Volume 69, Number 249)]
[Rules and Regulations]               
[Page 77890-77896]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29de04-3]                         

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 738, 740, 742, 745 and 774

[Docket No. 041221359-4359-01]
RIN 0694-AD25

 
Implementation of the Understandings Reached at the June 2004 
Australia Group (AG) Plenary Meeting and Through a Subsequent AG 
Intersessional Decision; Clarifications to the Scope of ECCNs 1A004, 
1A995, and 2B351; Corrections to Country Group D and ECCNs 1C355, 
1C395, and 1C995; Additions to the List of States Parties to the 
Chemical Weapons Convention

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is publishing this 
final rule to amend the Export Administration Regulations (EAR) to 
implement the understandings reached at the June 2004 plenary meeting 
of the Australia Group (AG) and through a subsequent AG intersessional 
decision. Specifically, this final rule amends the EAR by adding three 
new bacteria and two new viruses to the list of AG-controlled plant 
pathogens described on the Commerce Control List (CCL). In addition, 
this rule amends the EAR to indicate that certain medical products 
identified on the CCL, which contain AG-controlled conotoxins, no 
longer require a license for chemical/biological (CB) reasons. The AG-
related licensing policies in the EAR are amended by adding a new 
criterion to the list of factors that BIS will consider when 
determining what action should be taken on license applications for AG-
listed items. This rule also amends the EAR to reflect the addition of 
five new member countries to the Australia Group. This rule corrects an 
inadvertent omission from a previous AG plenary rule (published on May 
31, 2002) by removing Bulgaria from the EAR list of countries of 
concern for chemical and biological reasons. This rule also amends the 
EAR to implement an AG intersessional decision, which was adopted after 
the June 2004 AG plenary meeting, by adding nine precursor chemicals to 
the list of AG-controlled precursor chemicals described on the CCL.
    In addition to the amendments to the EAR resulting from the AG 
understandings described above, this rule amends the EAR by revising a 
CCL entry containing protective and detection equipment identified on 
the Wassenaar Arrangement dual-use list to indicate that chemical/
biological (CB) controls in the EAR apply to certain chemical detection 
systems and dedicated detectors therefor, described in that entry, 
because such systems and detectors also are included on the AG 
``Control List of Dual-Use Chemical Manufacturing Facilities and 
Equipment and Related Technology.'' A related AG entry on the CCL is 
revised to indicate that it does not control any of the chemical 
detection systems described in the Wassenaar list entry, thereby 
eliminating any appearance of an overlap between the two CCL entries.
    This rule also amends three CCL entries, which control certain 
precursor chemicals and/or mixtures and test kits containing such 
chemicals, to restore the text of the license requirements notes that 
were inadvertently omitted from these ECCNs in a rule that BIS 
published on July 30, 2004.
    Finally, this rule updates the list of countries that currently are 
States Parties to the Chemical Weapons Convention (CWC) by adding seven 
countries that recently became States Parties.

DATES: This rule is effective December 29, 2004.

ADDRESSES: Written comments should be addressed to Willard Fisher, 
Regulatory Policy Division, Office of Exporter Services, Bureau of 
Industry and Security, Room 2705, 14th Street and Pennsylvania Avenue, 
NW., Washington, DC 20230, e-mailed to wfisher@bis.doc.gov, or faxed to 
(202) 482-3355.

FOR FURTHER INFORMATION CONTACT: Douglas Brown, Office of 
Nonproliferation Controls and Treaty Compliance, Bureau of Industry and 
Security, telephone: (202) 482-7900.

SUPPLEMENTARY INFORMATION:

Background

A. Revisions to the EAR Based on Understandings Reached at the June 
2004 Plenary Meeting of the Australia Group and Through a Subsequent AG 
Intersessional Decision

    The Bureau of Industry and Security (BIS) is amending the Export 
Administration Regulations (EAR) to implement the understandings 
reached at, and subsequent to, the annual plenary meeting of the 
Australia Group (AG) that was held in Paris on June 7-10, 2004. The 
Australia Group is a multilateral forum, consisting of 38 participating 
countries, that maintains export controls on a list of chemicals, 
biological agents, and related equipment and technology that could be 
used in a chemical or biological weapons program. The AG periodically 
reviews items on its control list to enhance the effectiveness of 
participating governments' national controls and to achieve greater 
harmonization among these controls.
    The understandings reached at the June 2004 plenary meeting 
included a decision to add five pathogens to the AG ``List of Plant 
Pathogens for Export Controls.'' This final rule implements these 
changes by amending the EAR to add three bacteria and two viruses to 
the AG list of plant pathogens described in Export Control 
Classification Number (ECCN) 1C354 on the Commerce Control List (CCL) 
(Supplement No. 1 to Part 774 of the EAR).
    Specifically, this rule adds the following three bacteria to the 
AG-listed plant pathogens described in ECCN 1C354.a on the CCL: 
Xanthomonas oryzae pv. oryzae (syn. Pseudomonas campestris pv. oryzae), 
Clavibacter michiganensis subspecies sepedonicus (syn. Corynebacterium 
michiganensis subspecies sepedonicum or Corynebacterium sepedonicum), 
and Ralstonia solanacearum Races 2 and 3 (syn. Pseudomonas solanacearum 
Races 2 and 3 or Burkholderia solanacearum Races 2 and 3). In addition, 
this rule amends ECCN 1C354 by adding a new 1C354.c that controls the 
following two viruses: Potato Andean latent tymovirus and Potato 
spindle tuber viroid. These AG-listed bacteria and viruses, along with 
all other items controlled by ECCN 1C354, require a license for export 
or reexport to all destinations, worldwide.
    Another understanding reached at the June 2004 AG plenary meeting 
was the removal of certain medical products containing conotoxins from 
the AG list of biological agents (i.e., human and zoonotic pathogens 
and toxins). This rule amends the EAR to implement this understanding 
by revising ECCN

[[Page 77891]]

1C991.c to control medical products, as defined in that ECCN, that 
contain conotoxins controlled by ECCN 1C351.d.3-1C991.c also controls 
medical products that contain botulinum toxins controlled by 1C351.d.1. 
This rule also makes a conforming change to ECCN 1C991.d to indicate 
that 1C991.d no longer controls medical products containing conotoxins. 
As a result of the changes made by this rule, medical products 
containing conotoxins no longer require a license to those countries 
indicated under CB Column 3 on the Commerce Country Chart (Supplement 
No. 1 to Part 738 of the EAR). However, such medical products continue 
to require a license to certain destinations for anti-terrorism (AT) 
reasons.
    The understandings reached at the June 2004 plenary meeting also 
included the addition of a new licensing factor to the AG ``Guidelines 
for Transfers of Sensitive Chemical or Biological Items'' (Guidelines). 
This new factor requires that, when evaluating export license 
applications for AG-listed items, the export licensing authorities of 
AG participating countries must take into consideration the extent and 
effectiveness of the export control system in the importing country and 
in any intermediary country through which the items being exported or 
reexported will transit or be transshipped en route to the importing 
country. This rule revises the AG-related licensing policies in the EAR 
to conform with this new requirement by amending Section 742.2(b)(2) of 
the EAR to include the new licensing factor in the list of factors that 
BIS will consider when determining what action should be taken on 
license applications to export or reexport AG-listed items identified 
on the Commerce Control List (CCL).
    In addition, this rule amends the EAR to add Estonia, Latvia, 
Lithuania, Malta, and Slovenia as the newest participating countries in 
the Australia Group (which now includes a total of 38 countries). 
Supplement No. 1 to Part 740 (Country Groups) is revised to add these 
five countries to Country Group A:3 (Australia Group) and Supplement 
No. 1 to Part 738 (Commerce Country Chart) is revised to remove the 
licensing requirements for these countries under CB Column 2, in 
conformance with the licensing policy that applies to other AG 
participating countries.
    Finally, this rule amends the EAR to implement an AG intersessional 
decision, which was adopted after the June 2004 AG plenary meeting, by 
adding nine precursor chemicals to the list of AG-controlled precursor 
chemicals described in Export Control Classification Number (ECCN) 
1C350 on the Commerce Control List (CCL). Specifically, this rule adds 
four precursor chemicals (Methylphosphonic acid; Diethyl 
methylphosphonate; N,N-dimethylamino-phosphoryl dichloride; and 
Methylphosphonothioic dichloride) to ECCN 1C350.b and one precursor 
chemical (Ethyldiethanolamine) to ECCN 1C350.c, which describe dual-use 
AG-listed precursor chemicals also identified as Schedule 2 chemicals 
and Schedule 3 chemicals, respectively, under the Chemical Weapons 
Convention (CWC). This rule also adds the following four precursor 
chemicals to the list of chemicals in ECCN 1C350.d that may be used as 
precursors to toxic chemical agents: Tri-isopropyl phosphite; O,O-
diethyl phosphorothioate; O,O-diethyl phosphorodithioate; and Sodium 
hexafluorosilicate.

B. Clarification of Controls on Chemical Detection Equipment in ECCNs 
1A004, 1A995, and 2B351

    This final rule amends ECCNs 1A004 and 2B351 on the Commerce 
Control List (CCL) to clarify the scope of these ECCNs and to provide 
an accurate description of the items in each entry that are subject to 
the chemical/biological (CB) controls in the EAR that apply to the 
toxic gas monitoring systems included on the Australia Group (AG) 
``Control List of Dual-Use Chemical Manufacturing Facilities and 
Equipment and Related Technology.''
    Specifically, this rule amends ECCN 1A004 on the CCL by revising 
the License Requirements section of the ECCN to add a chemical/
biological (CB) reason for control paragraph, which indicates that CB 
controls apply to chemical detection systems and certain components 
therefor (i.e., dedicated detectors), in 1A004.c, that also have the 
technical characteristics described in ECCN 2B351.a. A license is 
required, for CB reasons, to export or reexport such systems and 
detectors to destinations indicated under CB Column 3 on the Commerce 
Country Chart (Supplement No. 1 to Part 738 of the EAR). These systems 
and detectors in 1A004.c also require a license for national security 
(NS) and anti-terrorism (AT) reasons to destinations indicated under NS 
Column 2 and AT Column 1, respectively, on the Commerce Country Chart.
    In addition, this rule amends ECCN 2B351 by revising the heading of 
the entry to indicate that this ECCN does not control toxic gas 
monitoring systems and dedicated detectors therefor that are controlled 
under ECCN 1A004.c. This change, coupled with the addition of a CB 
Reason for Control paragraph in the License Requirements section of 
ECCN 1A004, means that toxic gas monitoring systems and dedicated 
detectors therefor that have the technical characteristics of both 
1A004.c and 2B351.a are now controlled under ECCN 1A004 for NS, CB, and 
AT reasons. ECCN 2B351 controls toxic gas monitoring systems, and 
dedicated detectors therefor, that are not controlled by ECCN 1A004.c 
and that have the technical characteristics described in 2B351.a.
    This rule also revises the Related Controls paragraph in the List 
of Items Controlled section of ECCN 2B351 to provide more specific 
references to the chemical detection systems that are controlled under 
related ECCNs 1A004 and 1A995. To further clarify the relationship 
between ECCNs 2B351 and 1A995, this rule revises the heading of ECCN 
1A995 to indicate that 1A995 controls certain detection equipment not 
controlled under ECCN 2B351.
    Finally, this rule revises Section 742.2(a)(3)(i) to include a 
reference to the chemical detection systems in ECCN 1A004.c that are 
controlled for CB reasons and require a license to destinations and 
countries indicated under CB Column 3 on the Commerce Country Chart.

C. Correction to Country Group D (Supplement No. 1 to Part 740--Country 
Groups)

    This rule also makes a correction, in Country Group D of Supplement 
No. 1 to Part 740 (Country Groups), by removing the ``X'' under the 
column labeled ``[D:3] Chemical & Biological'' in the entry for 
Bulgaria. Bulgaria was admitted to the Australia Group in 2001. A final 
rule published by BIS on May 31, 2002 (67 FR 37977) added Bulgaria to 
Country Group A:3 (Australia Group) and removed the licensing 
requirements for Bulgaria, under CB Column 2 and CB Column 3 of the 
Commerce Country Chart (Supplement No. 1 to Part 738 of the EAR), in 
conformance with the licensing policy that applies to other AG 
participating countries. However, the rule did not remove Bulgaria from 
Country Group D:3 (i.e., countries of concern for chemical and 
biological reasons). This final rule corrects that oversight.

D. Corrections to ECCNs 1C355, 1C395, and 1C995

    This rule amends ECCNs 1C355, 1C395, and 1C995 (which control 
certain chemical precursors and/or mixtures and test kits containing 
precursor chemicals) to restore the

[[Page 77892]]

license requirements notes in each ECCN that were inadvertently removed 
by an interim final rule that BIS published in the Federal Register on 
July 30, 2004 (69 FR 46069). The July 30th rule revised the License 
Requirements section in ECCNs 1C355 and 1C395, by removing anti-
terrorism (AT) controls for exports and reexports to Iraq, and also 
revised the language in the AT controls paragraph of ECCN 1C995, which 
retained AT controls on Iraq. These revisions to the License 
Requirements section in ECCNs 1C355, 1C395, and 1C995, which were 
intended to affect only the language in the anti-terrorism (AT) 
controls paragraphs, inadvertently omitted the text of the existing 
license requirements notes for these ECCNs.

E. Revisions to the EAR Based on the Addition of New States Parties to 
the Chemical Weapons Convention (CWC)

    This rule revises Supplement No. 2 to Part 745 of the EAR (titled 
``States Parties to the Convention on the Prohibition of the 
Development, Production, Stockpiling, and Use of Chemical Weapons and 
on Their Destruction'') by adding the names of seven countries that 
recently have become States Parties to the CWC (i.e., Chad, Madagascar, 
Marshall Islands, Rwanda, Saint Kitts and Nevis, Sierra Leone, and 
Solomon Islands).

Savings Clause

    Exports and reexports that did not require a license or that were 
eligible for a License Exception prior to publication of this rule and 
for which this rule imposes a new license requirement or removes that 
License Exception availability may be made without a license or under 
that License Exception if the items being exported or reexported were 
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, on or before January 13, 2005, and exported or 
reexported January 28, 2005. Any such exports or reexports not meeting 
those deadlines require a license in accordance with this regulation.

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 
contains a collection of information subject to the requirements of the 
PRA. This collection has been approved by OMB under Control Number 
0694-0088 (Multi-Purpose Application), which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. Send 
comments regarding this burden estimate or any other aspect of this 
collection of information, including suggestions for reducing the 
burden, to David Rostker, Office of Management and Budget (OMB), by e-
mail to 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 (5 U.S.C. 553(a)(1)). Further, no other 
law requires that a notice of 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 Willard 
Fisher, 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

15 CFR Part 738

    Administrative practice and procedure, Exports, Foreign trade.

15 CFR Part 740

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Part 742

    Exports, Foreign trade.

15 CFR Part 745

    Administrative practice and procedure, Chemicals, Exports, Foreign 
trade, Reporting and recordkeeping requirements.

15 CFR Part 774

    Exports, Foreign trade, Reporting and recordkeeping requirements.

0
Accordingly, Parts 738, 740, 742, 745 and 774 of the Export 
Administration Regulations (15 CFR Parts 730-799) are amended as 
follows:

PART 738--[AMENDED]

0
1. The authority citation for 15 CFR Part 738 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
2. Supplement No. 1 to Part 738 is amended by revising the entries for 
``Estonia'', ``Latvia'', ``Lithuania'', ``Malta'', and ``Slovenia'' to 
read as follows:

[[Page 77893]]



                                                                      Supplement No. 1 to Part 738--Commerce Country Chart
                                                                                      [Reason for control]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Chemical & biological       Nuclear         National     Missile tech     Regional       Firearms         Crime control      Anti-terrorism
                                                            weapons         nonproliferation     security    --------------    stability     convention  ---------------------------------------
                     Countries                     ----------------------------------------------------------              ------------------------------
                                                      CB1     CB2     CB3     NP1      NP2      NS1     NS2        MT1        RS1     RS2        FC1        CC1     CC2     CC3     AT1     AT2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                                          * * * * * * *
Estonia                                                 X                        X                X       X             X       X

                                                                                          * * * * * * *
Latvia                                                  X                                         X       X             X       X

                                                                                          * * * * * * *
Lithuania                                               X                        X                X       X             X       X

                                                                                          * * * * * * *
Malta                                                   X                        X                X       X             X       X       X                     X               X

                                                                                          * * * * * * *
Solvenia                                                X                                         X       X             X       X

                                                                                          * * * * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PART 740--[AMENDED]

0
3. The authority citation for 15 CFR part 740 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Pub. L. 106-387; 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. In Supplement No. 1 to Part 740, Country Groups, Country Group A is 
amended by adding, in alphabetical order, new entries for ``Estonia'', 
``Lithuania'', and ``Malta'' and by revising the entries for ``Latvia'' 
and ``Slovenia'' to read as follows:

                                                      Supplement No. 1 to Part 740--Country Groups
                                                                    [Country Group A]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Missile technology  control                                     Nuclear suppliers  group
           Country                        [A:1]                      regime  [A:2]             Australia  group  [A:3]                 [A:4]
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
Estonia                                                                                                                X

                                                                      * * * * * * *
Latvia                                                                                                                 X                              X

                                                                      * * * * * * *

Lithuania                                                                                                              X

                                                                      * * * * * * *
Malta                                                                                                                  X

                                                                      * * * * * * *
Slovenia                                                                                                               X                              X

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

0
5. In Supplement No. 1 to Part 740, Country Groups, Country Group D is 
amended by removing the ``X'' under the column labeled ``[D:3] Chemical 
& Biological'' in the entry for Bulgaria.

PART 742--[AMENDED]

0
6. The authority citation for 15 CFR Part 742 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 
Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; Sec. 1503, 
Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 
Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; 
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 
FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 
2003, 68 FR 26459, May 16, 2003; Notice of October 29, 2003, 68 FR 
62209, 3 CFR, 2003 Comp., p. 347; Notice of August 6, 2004, 69 FR 
48763 (August 10, 2004).


0
7. Section 742.2 is amended by revising paragraph (a)(3)(i), by 
redesignating paragraphs (b)(2)(iv) through (b)(2)(ix) as paragraphs 
(b)(2)(v)

[[Page 77894]]

through (b)(2)(x), respectively, and by adding a new paragraph 
(b)(2)(iv) to read as follows:


Sec.  742.2  Proliferation of chemical and biological weapons.

    (a) * * *
    (3) * * *
    (i) Equipment and materials identified in ECCN 2B350 or 2B351 on 
the CCL, chemical detection systems controlled by 1A004.c for detecting 
chemical warfare agents and having the characteristics of toxic gas 
monitoring systems described in 2B351.a, and valves controlled by ECCN 
2A226 or ECCN 2A292 having the characteristics of those described in 
2B350.g, which can be used in the production of chemical weapons 
precursors or chemical warfare agents.
* * * * *
    (b) * * *
    (2) * * *
    (iv) The extent and effectiveness of the export control system in 
the importing country and in any intermediary country through which the 
items being exported or reexported will transit or be transshipped en 
route to the importing country;
* * * * *

PART 745--[AMENDED]

0
8. The authority citation for 15 CFR Part 745 is revised to read as 
follows:


    Authority: 50 U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 
CFR, 1994 Comp., p. 950; Notice of October 29, 2003, 68 FR 62209, 3 
CFR, 2003 Comp., p. 347.

0
9. Supplement No. 2 to Part 745 is amended by revising the undesignated 
center heading ``List of States Parties as of March 1, 2004'' to read 
``List of States Parties as of December 1, 2004'' and by adding, in 
alphabetical order, the countries ``Chad'', ``Madagascar'', ``Marshall 
Islands'', ``Rwanda'', ``Saint Kitts and Nevis'', ``Sierra Leone'', and 
``Solomon Islands'.

PART 774--[AMENDED]

0
10. The authority citation for 15 CFR Part 774 continues 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
11. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--``Materials, Chemicals, ``Microorganisms'' & ``Toxins' '', 
ECCN 1A004 is amended by revising the License Requirements section of 
the ECCN to read as follows:

1A004 Protective and detection equipment and components not 
specially designed for military use as follows (see List of Items 
Controlled).

License Requirements

    Reason for Control: NS, CB, AT

------------------------------------------------------------------------
                Control(s)                          Country Chart
------------------------------------------------------------------------
NS applies to entire entry................  NS Column 2.
CB applies to chemical detection systems    CB Column 3.
 and dedicated detectors therefor, in
 1A004.c, that also have the technical
 characteristics described in 2B351.a.
AT applies to entire entry................  AT Column 1.
------------------------------------------------------------------------

* * * * *


0
12. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--``Materials, Chemicals, `Microorganisms' & `Toxins' '', the 
heading of ECCN 1A995 is revised to read as follows:

1A995 Protective and detection equipment and components not 
specially designed for military use and not controlled by ECCN 1A004 
or ECCN 2B351, as follows (see List of Items Controlled).
* * * * *
0
13. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--``Materials, Chemicals, `Microorganisms' & `Toxins' '', 
ECCN 1C350 is amended by revising the List of Items Controlled to read 
as follows:

1C350 Chemicals that may be used as precursors for toxic chemical 
agents.
* * * * *

List of Items Controlled

    Unit: Liters or kilograms, as appropriate.
    Related Controls: The chemicals 0-Ethyl-2-diisopropylaminoethyl 
methyl phosphonite (QL) (C.A.S. 57856-11-8); Ethyl phosphonyl 
difluoride (C.A.S. 753-98-0); and Methyl phosphonyl 
difluoride. (C.A.S. 676-99-3); methylphosphinyl dichloride 
(C.A.S. 676-83-5); methylphosphinyl difluoride (C.A.S. 753-59-
3); and methylphosphonyl dichloride (C.A.S. 676-97-1) are 
subject to the licensing jurisdiction of the Directorate of Defense 
Trade Controls, U.S. Department of State.
    Related Definitions: See Sec.  770.2(k) of the EAR for synonyms for 
the chemicals listed in this entry.

Items

    a. [RESERVED]
    b. Australia Group-controlled precursor chemicals also identified 
as Schedule 2 chemicals under the CWC, as follows, and mixtures in 
which at least one of the following chemicals constitutes 30 percent or 
more of the weight of the mixture:

b.1. (C.A.S. 7784-34-1) Arsenic trichloride;
b.2. (C.A.S. 76-93-7) Benzilic acid;
b.3. (C.A.S. 78-38-6) Diethyl ethylphosphonate;
b.4. (C.A.S. 15715-41-0) Diethyl methylphosphonite;
b.5. (C.A.S. 2404-03-7) Diethyl-N,N-
dimethylphosphoroamidate;
b.6. (C.A.S. 5842-07-9) N,N-Diisopropyl-beta-aminoethane 
thiol;
b.7. (C.A.S. 4261-68-1) N,N-Diisopropyl-beta-aminoethyl 
chloride hydrochloride;
b.8. (C.A.S. 96-80-0) N,N-Diisopropyl-beta-aminoethanol;
b.9. (C.A.S. 96-79-7), N,N-Diisopropyl-beta-aminoethyl 
chloride;
b.10. (C.A.S. 6163-75-3) Dimethyl ethylphosphonate;
b.11. (C.A.S. 756-79-6) Dimethyl methylphosphonate;
b.12. (C.A.S. 1498-40-4) Ethyl phosphonous dichloride 
[Ethyl phosphinyl dichloride];
b.13. (C.A.S. 430-78-4) Ethyl phosphonus difluoride [Ethyl 
phosphinyl difluoride];
b.14. (C.A.S. 1066-50-8) Ethyl phosphonyl dichloride;
b.15. [RESERVED]
b.16. [RESERVED]
b.17. [RESERVED]
b.18. (C.A.S. 464-07-3) Pinacolyl alcohol;
b.19. (C.A.S. 1619-34-7) 3-Quinuclidinol;
b.20. (C.A.S. 111-48-8) Thiodiglycol;
b.21. (C.A.S. 993-13-5) Methylphosphonic acid;
b.22. (C.A.S. 683-08-9) Diethyl methylphosphonate;
b.23. (C.A.S. 667-43-0) N,N-dimethylamino-phosphoryl 
dichloride;
b.24. (C.A.S. 676-98-2) Methylphos- phonothioic dichloride.

    c. Australia Group-controlled precursor chemicals also 
identified as Schedule 3 chemicals under the CWC, as follows, and 
mixtures in which at least one of the following chemicals 
constitutes 30 percent or more of the weight of the mixture:

c.1. (C.A.S. 762-04-9) Diethyl phosphite;
c.2. (C.A.S. 868-85-9) Dimethyl phosphite (dimethyl 
hydrogen phosphite);
c.3. (C.A.S. 10025-87-3) Phosphorus oxychloride;
c.4. (C.A.S. 10026-13-8) Phosphorus pentachloride;
c.5. (C.A.S. 7719-12-2) Phosphorus trichloride;
c.6. (C.A.S. 10025-67-9) Sulfur monochloride;
c.7. (C.A.S. 10545-99-0) Sulfur dichloride;
c.8. (C.A.S. 7719-09-7) Thionyl chloride;
c.9. (C.A.S. 102-71-6) Triethanolamine;
c.10. (C.A.S. 122-52-1) Triethyl phosphite;
c.11. (C.A.S. 121-45-9) Trimethyl phosphite;
c.12. (C.A.S. 139-87-7) Ethyldiethan- olamine.


[[Page 77895]]


    d. Other Australia Group-controlled precursor chemicals not also 
identified as Schedule 1, 2, or 3 chemicals under the CWC, as 
follows, and mixtures in which at least one of the following 
chemicals constitutes 30 percent or more of the weight of the 
mixture:

d.1. (C.A.S. 1341-49-7) Ammonium hydrogen fluoride;
d.2. (C.A.S. 107-07-3) 2-Chloroethanol;
d.3. (C.A.S. 100-37-8) N,N-Diethylaminoethanol;
d.4. (C.A.S. 108-18-9) Di-isopropylamine;
d.5. (C.A.S. 124-40-3) Dimethylamine;
d.6. (C.A.S. 506-59-2) Dimethylamine hydrochloride;
d.7. (C.A.S. 7664-39-3) Hydrogen fluoride;
d.8. (C.A.S. 3554-74-3) 3-Hydroxyl-1-methylpiperidine;
d.9. (C.A.S. 76-89-1) Methyl benzilate;
d.10. (C.A.S. 1314-80-3) Phosphorus pentasulfide;
d.11. (C.A.S. 75-97-8) Pinacolone;
d.12. (C.A.S. 151-50-8) Potassium cyanide;
d.13. (C.A.S. 7789-23-3) Potassium fluoride;
d.14. (C.A.S. 7789-29-9) Potassium bifluoride;
d.15. (C.A.S. 3731-38-2) 3-Quinuclidone;
d.16. (C.A.S. 1333-83-1) Sodium bifluoride;
d.17. (C.A.S. 143-33-9) Sodium cyanide;
d.18. (C.A.S. 7681-49-4) Sodium fluoride;
d.19. (C.A.S. 1313-82-2) Sodium sulfide;
d.20. (C.A.S. 637-39-8) Triethanolamine hydrochloride;
d.21. (C.A.S. 116-17-6) Tri-isopropyl phosphite;
d.22. (C.A.S. 2465-65-8) O,O-diethyl phosphorothioate;
d.23. (C.A.S. 298-06-6) O,O-diethyl phosphorodithioate;
d.24. (C.A.S. 16893-85-9) Sodium hexafluorosilicate.

0
14. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, ``Microorganisms'' & ``Toxins,'' ECCN 
1C354 is amended by revising the List of Items Controlled to read as 
follows:

1C354 Plant pathogens, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

    Unit: $ Value.
    Related Controls: All vaccines are excluded from the scope of 
this entry. See ECCN 1C991.
    Related Definitions: N/A

Items

    a. Bacteria, as follows:

a.1. Xanthomonas albilineans;
a.2. Xanthomonas campestris pv. citri including strains referred to 
as Xanthomonas campestris pv. citri types A,B,C,D,E or otherwise 
classified as Xanthomonas citri, Xanthomonas campestris pv. 
aurantifolia or Xanthomonas campestris pv. citrumelo;
a.3. Xanthomonas oryzae pv. oryzae (syn. Pseudomonas campestris pv. 
oryzae);
a.4. Clavibacter michiganensis subspecies sepedonicus (syn. 
Corynebacterium michiganensis subspecies sepedonicum or 
Corynebacterium sepedonicum);
a.5. Ralstonia solanacearum Races 2 and 3 (syn. Pseudomonas 
solanacearum Races 2 and 3 or Burkholderia solanacearum Races 2 and 
3);
    b. Fungi, as follows:
b.1. Colletotrichum coffeanum var. virulans (Colletotrichum 
kahawae);
b.2. Cochliobolus miyabeanus (Helminthosporium oryzae);
b.3. Microcyclus ulei (syn. Dothidella ulei);
b.4. Puccinia graminis (syn. Puccinia graminis f. sp. tritici);
b.5. Puccinia striiformis (syn. Puccinia glumarum);
b.6. Magnaporthe grisea (pyricularia grisea/pyricularia oryzae);

    c. Viruses, as follows:

c.1. Potato Andean latent tymovirus;
c.2. Potato spindle tuber viroid.


0
15. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, ``Microorganisms'' & ``Toxins,'' ECCN 
1C355 is amended by revising the License Requirements section to read 
as follows:

1C355 Chemical Weapons Convention (CWC) Schedule 2 and 3 chemicals 
and families of chemicals not controlled by ECCN 1C350 or by the 
Department of State under the ITAR.

License Requirements

    Reason for Control: CW, AT

Control(s)

    CW applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for CW reasons. A license is required to export or reexport CWC 
Schedule 2 chemicals and mixtures identified in 1C355.a to States 
not Party to the CWC (i.e., destinations not listed in Supplement 
No. 2 to part 745 of the EAR). A license is required to export CWC 
Schedule 3 chemicals and mixtures identified in 1C355.b to States 
not Party to the CWC, unless an End-Use Certificate issued by the 
government of the importing country is obtained by the exporter, 
prior to export. A license is required to reexport CWC Schedule 3 
chemicals and mixtures identified in 1C355.b from a State not Party 
to the CWC to any other State not Party to the CWC. (See Sec.  
742.18 of the EAR for license requirements and policies for toxic 
and precursor chemicals controlled for CW reasons.)
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for AT reasons in 1C355. A license is required, for AT reasons, to 
export or reexport items controlled by 1C355 to a country in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR. (See part 742 
of the EAR for additional information on the AT controls that apply 
to Iran, Libya, North Korea, Sudan, and Syria. See part 746 of the 
EAR for additional information on the comprehensive trade sanctions 
that apply to Cuba and Iran. See Supplement No. 1 to part 736 of the 
EAR for export controls on Syria.)

License Requirements Notes

    1. Mixtures: a. Mixtures containing toxic and precursor 
chemicals identified in ECCN 1C355, in concentrations that are below 
the control levels indicated in 1C355.a and .b, are controlled by 
ECCN 1C995 and are subject to the license requirements specified in 
that ECCN.
    b. Mixtures containing chemicals identified in this entry are 
not controlled by ECCN 1C355 when the controlled chemical is a 
normal ingredient in consumer goods packaged for retail sale for 
personal use or packaged for individual use. Such consumer goods are 
classified as EAR99.
    Note to mixtures: Calculation of concentrations of CW-controlled 
chemicals:
    a. Exclusion. No chemical may be added to the mixture (solution) 
for the sole purpose of circumventing the Export Administration 
Regulations;
    b. Percent Weight Calculation. When calculating the percentage, 
by weight, of components in a chemical mixture, include all 
components of the mixture, including those that act as solvents.
    2. Compounds: Compounds created with any chemicals identified in 
this ECCN 1C355 may be shipped NLR (No License Required), without 
obtaining an End-Use Certificate, unless those compounds are also 
identified in this entry or require a license for reasons set forth 
elsewhere in the EAR.
    Technical Notes: For purposes of this entry, a ``mixture'' is 
defined as a solid, liquid or gaseous product made up of two or more 
components that do not react together under normal storage 
conditions.
* * * * *


0
16. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, ``Microorganisms'' & ``Toxins,'' ECCN 
1C395 is amended by revising the License Requirements section to read 
as follows:

1C395 Mixtures and medical, analytical, diagnostic, and food testing 
kits not controlled by ECCN 1C350, as follows (See List of Items 
Controlled).

License Requirements

    Reason for Control: CB, CW, AT

Control(s)

    CB applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for CB reasons in 1C395. A license is required, for CB reasons, to 
export or reexport mixtures controlled by 1C395.a and test kits 
controlled by 1C395.b to States not Party to the CWC (i.e., 
destinations not listed in Supplement No. 2 to part 745 of the EAR).
    CW applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for CW reasons. A license is required for CW reasons, as follows, to 
States not Party to the CWC (i.e., destinations not listed in 
Supplement No. 2 to part 745 of the EAR): (1) Exports and reexports 
of mixtures controlled by 1C395.a, (2) exports and reexports of test 
kits controlled by 1C395.b

[[Page 77896]]

that contain CWC Schedule 2 chemicals controlled by ECCN 1C350, (3) 
exports of test kits controlled by 1C395.b that contain CWC Schedule 
3 chemicals controlled by ECCN 1C350, except that a license is not 
required, for CW reasons, to export test kits containing CWC 
Schedule 3 chemicals if an End-Use Certificate issued by the 
government of the importing country is obtained by the exporter 
prior to export, and (4) reexports from States not Party to the CWC 
of test kits controlled by 1C395.b that contain CWC Schedule 3 
chemicals. (See Sec.  742.18 of the EAR for license requirements and 
policies for toxic and precursor chemicals controlled for CW 
reasons.)
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for AT reasons in 1C395. A license is required, for AT reasons, to 
export or reexport items controlled by 1C395 to a country in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR. (See part 742 
of the EAR for additional information on the AT controls that apply 
to Iran, Libya, North Korea, Sudan, and Syria. See part 746 of the 
EAR for additional information on the comprehensive trade sanctions 
that apply to Cuba and Iran. See Supplement No. 1 to part 736 of the 
EAR for information on export controls that apply to Syria.)

License Requirements Notes

    1. 1C395.b does not control mixtures that contain precursor 
chemicals identified in ECCN 1C350.b or .c in concentrations below 
the control levels for mixtures indicated in 1C350.b or .c. 1C395.a 
and 1C995.a.1 and a.2.a control such mixtures, unless they are 
consumer goods, as described in License Requirements Note 2 of this 
ECCN.
    2. This ECCN does not control mixtures when the controlled 
chemicals are normal ingredients in consumer goods packaged for 
retail sale for personal use. Such consumer goods are classified as 
EAR99.
* * * * *


0
17. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, ``Microorganisms'' & ``Toxins,'' ECCN 
1C991 is amended by revising the List of Items Controlled to read as 
follows:

1C991 Vaccines, immunotoxins, medical products, diagnostic and food 
testing kits, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

    Unit: $ value.
    Related Controls: Medical products containing ricin or 
saxitoxin, as follows, are controlled for CW reasons under ECCN 
1C351:

(1) Ricinus Communis AgglutininII (RCAII), 
also known as ricin D, or Ricinus Communis LectinIII 
(RCLIII);
(2) Ricinus Communis LectinIV (RCLIV), also 
known as ricin E; or
(3) Saxitoxin identified by C.A.S. 35523-89-8.

    Related Definitions: For the purpose of this entry, 
``immunotoxin'' is defined as an antibody-toxin conjugate intended 
to destroy specific target cells (e.g., tumor cells) that bear 
antigens homologous to the antibody. For the purpose of this entry, 
``medical products'' are: (1) Pharmaceutical formulations designed 
for human administration in the treatment of medical conditions, (2) 
prepackaged for distribution as medical products, and (3) approved 
by the U.S. Food and Drug Administration to be marketed as medical 
products. For the purpose of this entry, ``diagnostic and food 
testing kits'' are specifically developed, packaged and marketed for 
diagnostic or public health purposes. Biological toxins in any other 
configuration, including bulk shipments, or for any other end-uses 
are controlled by ECCN 1C351. For the purpose of this entry, 
``vaccine'' is defined as a medicinal (or veterinary) product in a 
pharmaceutical formulation, approved by the U.S. Food and Drug 
Administration or the U.S. Department of Agriculture to be marketed 
as a medical (or veterinary) product or for use in clinical trials, 
that is intended to stimulate a protective immunological response in 
humans or animals in order to prevent disease in those to whom or to 
which it is administered.

Items

    a. Vaccines against items controlled by ECCN 1C351, 1C352, 
1C353, or 1C354;
    b. Immunotoxins containing items controlled by 1C351.d;
    c. Medical products containing botulinum toxins controlled by 
ECCN 1C351.d.1 or conotoxins controlled by ECCN 1C351.d.3;
    d. Medical products containing items controlled by ECCN 1C351.d, 
except botulinum toxins controlled by ECCN 1C351.d.1, conotoxins 
controlled by ECCN 1C351.d.3, and items controlled for CW reasons 
under 1C351.d.5 or .d.6; and
    e. Diagnostic and food testing kits containing items controlled 
by ECCN 1C351.d, except items controlled for CW reasons under ECCN 
1C351.d.5 or .d.6.


0
18. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, ``Microorganisms'' & ``Toxins,'' ECCN 
1C995 is amended by revising the License Requirements section to read 
as follows:

1C995 Mixtures not controlled by ECCN 1C350, ECCN 1C355 or ECCN 
1C395 that contain chemicals controlled by ECCN 1C350 or ECCN 1C355 
and medical, analytical, diagnostic, and food testing kits not 
controlled by ECCN 1C350 or ECCN 1C395 that contain chemicals 
controlled by ECCN 1C350.d, as follows (see List of Items 
Controlled).

License Requirements

    Reason for Control: AT

------------------------------------------------------------------------
                Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry................  AT Column 1 and Iraq.
------------------------------------------------------------------------

License Requirement Notes

    1. This ECCN does not control mixtures containing less than 0.5% 
of any single toxic or precursor chemical controlled by ECCN 
1C350.b, .c, or .d or ECCN 1C355 as unavoidable by-products or 
impurities. Such mixtures are classified as EAR99.
    2. 1C995.c does not control mixtures that contain precursor 
chemicals identified in 1C350.d in concentrations below the levels 
for mixtures indicated in 1C350.d. 1C995.a.2.b controls such 
mixtures, unless they are consumer goods as described in License 
Requirements Note 3 of this ECCN.
    3. This ECCN does not control mixtures when the controlled 
chemicals are normal ingredients in consumer goods packaged for 
retail sale for personal use. Such consumer goods are classified as 
EAR99.
* * * * *


0
19. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 2--Materials Processing, ECCN 2B351 is amended by revising the 
List of Items Controlled to read as follows:

2B351 Toxic gas monitoring systems that operate on-line and 
dedicated detectors therefor, except those systems and detectors 
controlled by ECCN 1A004.c.
* * * * *

List of Items Controlled

    Unit: Equipment in number.
    Related Controls: Also see ECCN 1A004, which controls chemical 
detection systems and specially designed components therefor that 
are specially designed or modified for detection or identification 
of chemical warfare agents, but not specially designed for military 
use, and ECCN 1A995, which controls certain detection equipment and 
components not controlled by ECCN 1A004 or by this ECCN.
    Related Definitions: For the purposes of this entry, the term 
``continuous operation'' describes the capability of the equipment 
to operate on line without human intervention. The intent of this 
entry is to control toxic gas monitoring systems capable of 
collection and detection of samples in environments such as chemical 
plants, rather than those used for batch-mode operation in 
laboratories.

Items

    a. Designed for continuous operation and usable for the 
detection of chemical warfare agents or chemicals controlled by 
1C350 at concentrations of less than 0.3 mg/m\3\; or
    b. Designed for the detection of cholinesterase-inhibiting 
activity.

    Dated: December 23, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-28538 Filed 12-28-04; 8:45 am]

BILLING CODE 3510-33-P