[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR740.7]

[Page 253-256]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF EXPORT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 740--LICENSE EXCEPTIONS--Table of Contents
 
Sec. 740.7  Computers (CTP).

    (a) Scope. License Exception CTP authorizes exports and reexports of 
computers and specially designed components therefor, exported or 
reexported separately or as part of a system for consumption in Computer 
Tier countries as provided by this section. (Related equipment 
controlled under 4A003.d and .g is authorized under this License 
Exception, only when exported or reexported with these computers as part 
of a system.) You may not use this License Exception to export or 
reexport items that you know will be used to enhance the CTP beyond the 
eligibility limit allowed to your country of destination. When 
evaluating your computer to determine License Exception CTP eligibility, 
use the CTP parameter to the exclusion of other technical parameters for 
computers classified under ECCN 4A003.a, .b and .c, except of parameters 
specified as Missile Technology (MT) concerns or 4A003.e (equipment 
performing analog-to-digital conversions exceeding the limits in ECCN 
3A001.a.5.a). This License Exception does not authorize the export or 
reexport of graphic accelerators or coprocessors, or of computers 
controlled for MT reasons.
    (b) Computer Tier 1. (1) Eligible countries. The countries that are 
eligible to receive exports under this License Exception include Antigua 
and Barbuda, Argentina, Australia, Austria, Bahamas, Barbados, 
Bangladesh, Belgium, Belize, Benin, Bhutan, Bolivia, Botswana, Brazil, 
Brunei, Burkina Faso, Burma, Burundi, Cameroon, Cape Verde, Central 
African Republic, Chad, Czech Republic, Chile, Colombia, Congo, Costa 
Rica, Cote d'Ivoire, Cyprus, Denmark, Dominica, Dominican Republic, 
Ecuador, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, 
Fiji, Gabon, Finland, France, Gambia (The), Germany, Ghana, Greece, 
Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong 
Kong, Hungary, Iceland, Indonesia, Ireland, Italy, Jamaica, Japan, 
Kenya, Kiribati, Korea (Republic of), Lesotho, Liberia, Liechtenstein, 
Luxembourg, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, 
Marshall Islands, Mauritius, Mexico, Micronesia (Federated States of), 
Monaco, Mozambique, Namibia, Nauru, Nepal, Netherlands, New Zealand, 
Nicaragua, Niger, Nigeria, Norway, Palau, Panama, Papua New Guinea, 
Paraguay, Peru, Philippines, Poland, Portugal, Romania, Rwanda, St. 
Kitts & Nevis, St.

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Lucia, St. Vincent and Grenadines, Sao Tome & Principe, San Marino, 
Senegal, Seychelles, Sierra Leone, Singapore, Slovakia, Slovenia, 
Solomon Islands, Somalia, South Africa, Spain, Sri Lanka, Surinam, 
Swaziland, Sweden, Switzerland, Taiwan, Tanzania, Togo, Tonga, Thailand, 
Trinidad and Tobago, Turkey, Tuvalu, Uganda, United Kingdom, Uruguay, 
Vatican City, Venezuela, Western Sahara, Western Samoa, Zaire, Zambia, 
and Zimbabwe. As of May 19, 2001, Lithuania is a Computer Tier 1 
country.
    (2) Eligible computers. The computers eligible for License Exception 
CTP to Tier 1 destinations are those having a Composite Theoretical 
Performance (CTP) greater than 6,500 Millions of Theoretical Operations 
Per Second (MTOPS).
    (c) [Reserved]
    (d) Computer Tier 3--(1) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, Azerbaijan, 
Bahrain, Belarus, Bosnia & Herzegovina, Bulgaria, Cambodia, China 
(People's Republic of), Comoros, Croatia, Djibouti, Egypt, and 
Yugoslavia (Serbia and Montenegro), Federal Republic of, Georgia, India, 
Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, Latvia, Lebanon, 
Lithuania, Macau, Macedonia (The Former Yugoslav Republic of), 
Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar, Russia, 
Saudi Arabia, Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab 
Emirates, Uzbekistan, Vanuatu, Vietnam, Yemen and Yugoslavia. As of May 
19, 2001, Lithuania moves to Computer Tier 1.
    (2) Eligible computers. The computers eligible for License Exception 
CTP to Tier 3 destinations are those having a CTP greater than 6,500 
MTOPS, but less than or equal to 85,000 MTOPS, subject to the 
restrictions in paragraph (d)(3) of this section.
    (3) Eligible exports. Only exports and reexports to permitted end-
users and end-uses located in countries in Computer Tier 3. License 
Exception CTP does not authorize exports and reexports to Computer Tier 
3 for nuclear, chemical, biological, or missile end-users and end-uses 
and military end-users and end-uses subject to license requirements 
under Sec. 744.2, Sec. 744.3, Sec. 744.4, Sec. 744.5, and Sec. 744.12 of 
the EAR. Such exports and reexports will continue to require a license 
and will be considered on a case-by-case basis. Retransfers to these 
end-users and end-uses in eligible countries are strictly prohibited 
without prior authorization.
    (4) Supporting documentation. Exporters are required to obtain a 
People's Republic of China (PRC) End-User Certificate before exporting 
computers described by paragraphs (d)(5)(i)(A) or (d)(5)(i)(B) of this 
section to the PRC, regardless of value. (See Sec. 748.10(b)(3) of the 
EAR for information on obtaining the PRC End-User Certificate.) 
Exporters are required to provide the PRC End-User Certificate Number to 
BXA as part of their post-shipment report (see paragraph (d)(5)(v) of 
this section). When providing the PRC End-User Certificate Number to 
BXA, you must identify the transaction in the post shipment report to 
which that PRC End-User Certificate Number applies. The original PRC 
End-User Certificate shall be retained in the exporter's files in 
accordance with the recordkeeping provisions of Sec. 762.2 of the EAR.
    (5) NDAA notification. (i) General requirement and procedures. The 
National Defense Authorization Act (NDAA) of FY98 (Public Law 105-85, 
111 Stat. 1629), enacted on November 18, 1997 requires advance 
notification of certain exports and reexports of computers to Computer 
Tier 3 countries. For each such transaction destined to Computer Tier 3, 
prior to using License Exception CTP, you must first notify BXA by 
submitting a completed Multipurpose Application Form (BXA-748P). The 
Multipurpose Application Form must be completed including all 
information required for a license application according to the 
instructions described in Supplement No. 1 to part 748 of the EAR, with 
two exceptions. You (the applicant as listed in Block 14) shall in Block 
5 (Type of Application) mark the box ``Other.'' This designator will 
permit BXA to route the NDAA notice into a special processing procedure. 
(Blocks 6 and 7, regarding support documentation, may be left blank.) 
BXA will not initiate the registration of an

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NDAA notice unless all information on the Multipurpose Application form 
is complete.
    (A) Prior to February 26, 2001, advance notification is required for 
all exports and reexports of computers with a CTP greater than 12,500 
but less than or equal to 85,000 MTOPS to Computer Tier 3 destinations. 
You must also provide a notice using this procedure prior to exporting 
or reexporting items that you know will be used to enhance the CTP of a 
previously exported or reexported computer beyond 12,500 MTOPS, but less 
than or equal to 85,000 MTOPS.
    (B) Beginning on February 26, 2001 but prior to March 20, 2001, 
advanced notification is required for export and reexport of computers 
with a CTP greater than 28,000 MTOPS, but less than or equal to 85,000 
MTOPS to Computer Tier 3 destinations. You must also provide a notice 
using this procedure prior to exporting or reexporting items that you 
know will be used to enhance the CTP of a previously exported or 
reexported computer beyond 28,000 MTOPS, but less than or equal to 
85,000 MTOPS.
    (ii) Action by BXA. Within 24 hours of the registration of the NDAA 
notice, BXA will refer the notice for interagency review. Registration 
is defined as the point at which the notice is entered into BXA's 
electronic system.
    (iii) Review by other departments or agencies. The Departments of 
Defense, Energy, and State have the authority to review the NDAA notice. 
Objections by any department or agency must be received by the Secretary 
of Commerce within nine days of the referral. Unlike the provisions 
described in Sec. 750.4(b) of the EAR, there are no provisions for 
stopping the processing time of the NDAA notice. If, within 10 days 
after the date of registration, any reviewing agency provides a written 
objection to the export or reexport of a computer, License Exception CTP 
may not be used. In such cases, you will be notified that a license is 
required for the export or reexport. The NDAA notice will then be 
processed by BXA as a license application in accordance to the 
provisions described in Sec. 750.4 of the EAR, and the licensing 
policies set forth in the Export Administration Regulations. Its NDAA 
notice number will be changed to a license application number. BXA may 
at this time request additional information to properly review the 
license application. If BXA confirms that no objection has been raised 
within the 10-day period (as described in paragraph (d)(5)(iv) of this 
section), you may proceed with the transaction on the eleventh day 
following date of registration. (Note that the fact that you have been 
advised to proceed with the transaction does not exempt you from other 
licensing requirements under the EAR, such as those based on knowledge 
of a prohibited end-use or end-user as referenced in general prohibition 
five (part 736 of the EAR) and set forth in part 744 of the EAR.)
    (iv) Status of pending advance notification requests. You must 
contact BXA's System for Tracking Export License Applications 
(``STELA'') at (202) 482-2752. (See Sec. 750.5 of the EAR for procedures 
to access information on STELA.) STELA will provide the date of 
registration of the NDAA notice. If no departments or agencies raise 
objections within the 10-day period, STELA will provide you on the 
eleventh day following date of registration with confirmation that no 
objections have been raised and you may proceed with the transaction. 
BXA will subsequently issue written confirmation to you. If a license is 
required, STELA will notify you that an objection has been raised and a 
license is required. The NDAA notice will be processed as a license 
application. In addition, BXA may provide notice of an objection by 
telephone, fax, courier service, or other means.
    (v) Post-shipment verification. This section outlines special post-
shipment reporting requirements for exporters of certain computers to 
destinations in Computer Tier 3. Post-shipment reports must be submitted 
in accordance with the provisions of this paragraph (d)(5)(v), and all 
relevant records of such exports must be kept in accordance with part 
762 of the EAR.
    (A) Exporters must file post-shipment reports for computer exports, 
as well as exports of items used to enhance previously exported or 
reexported computers, according to the following schedule:

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    (1) For exports occurring prior to February 26, 2001, where the CTP 
is greater than 12,500 MTOPS; and
    (2) For exports on or after February 26, 2001, but prior to March 
20, 2001, where the CTP is greater than 28,000 MTOPS.
    (B) Information that must be included in each post-shipment report. 
No later than the last day of the month following the month in which the 
export takes place, the exporter must submit the following information 
to BXA at the address listed in paragraph (d)(5)(v)(C) of this section:
    (1) Exporter name, address, and telephone number;
    (2) NDAA notification number;
    (3) Date of export;
    (4) End-user name, point of contact, address, telephone number;
    (5) Carrier;
    (6) Air waybill or bill of lading number;
    (7) Commodity description, quantities--listed by model numbers, 
serial numbers, and CTP level in MTOPS; and
    (8) Certification line for exporters to sign and date. The exporter 
must certify that the information contained in the report is accurate to 
the best of his or her knowledge.

    Note to paragraph (d)(5)(v)(B) of this section:
    For exports authorized under License Exception CTP to the People's 
Republic of China (PRC), you must submit the PRC End-User Certificate 
Number identifying the transaction for which the End-User Certificate 
Number applies.

    (C) Mailing address. A copy of the post-shipment report[s] required 
under paragraph (d)(5)(v) of this section shall be delivered to one of 
the following addresses. Note that BXA will not accept reports sent 
C.O.D.

(1) For deliveries by U.S. postal service: U.S. Department of Commerce, 
    Bureau of Export Administration, P.O. Box 273, Washington, D.C. 
    20044, Attn: Office of Enforcement Analysis HPC Team, Room 4065.
(2) For courier deliveries: U.S. Department of Commerce, Office of 
    Enforcement Analysis HPC Team, 14th Street and Constitution Ave., 
    NW, Room 4065, Washington, DC 20230.

    (e) Restrictions. (1) Access by certain foreign nationals. Computers 
eligible for License Exception CTP may not be accessed either physically 
or computationally by nationals of Cuba, Iran, Iraq, Libya, North Korea, 
Sudan or Syria, except commercial consignees described in Supplement No. 
3 to part 742 of the EAR are prohibited only from giving such nationals 
user-accessible programmability.
    (2) Reexport and retransfers. Computers eligible for License 
Exception CTP may not be reexported/retransferred without prior 
authorization from BXA i.e., a license, a permissive reexport, another 
License Exception, or ``No License Required''. This restriction must be 
conveyed to the consignee, via the Destination Control Statement, see 
Sec. 758.6 of the EAR. Additionally, the end-use and end-user 
restrictions in paragraph (d)(3) of this section must be conveyed to any 
consignee in Computer Tier 3.
    (f) Reporting requirements. In addition to the reporting 
requirements set forth in paragraph (d) of this section, see Sec. 743.1 
of the EAR for additional reporting requirements of certain items under 
License Exception CTP.

[66 FR 5444, Jan. 19, 2001; 66 FR 6465, Jan. 22, 2001, as amended at 66 
FR 12847, Mar. 1, 2001]