[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR742.5]

[Page 294-295]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE
 
PART 742_CONTROL POLICY_CCL BASED CONTROLS--Table of Contents
 
Sec.  742.5  Missile technology.

    (a) License requirements. (1) In support of U.S. foreign policy to 
limit the proliferation of missiles, a license is required to export and 
reexport items related to the design, development, production, or use of 
missiles. These items are identified in ECCNs on the CCL as MT Column 
No. 1 in the Country Chart column of the ``License Requirements'' 
section. Licenses for these items are required to all destinations, 
except Canada, as indicated by MT Column 1 of the Country Chart (see 
Supplement No. 1 to part 738 of the EAR).
    (2) The term ``missiles'' is defined as rocket systems (including 
ballistic missile systems, space launch vehicles, and sounding rockets) 
and unmanned air vehicle systems (including cruise missile systems, 
target drones, and reconnaissance drones) capable of delivering at least 
500 kilograms (kg) payload to a range of at least 300 kilometers (km).
    (b) Licensing policy. (1) Applications to export and reexport items 
identified in ECCNs on the CCL as MT Column No. 1 in the Country Chart 
column of the ``License Requirements'' section will be considered on a 
case-by-case basis to determine whether the export or reexport would 
make a material contribution to the proliferation of missiles. 
Applications for exports and reexports of such items contained in 
Category 7A or described by ECCN 9A101 on the CCL will be considered 
more favorably if such exports or reexports are determined to be 
destined to a manned aircraft, satellite, land vehicle, or marine 
vessel, in quantities appropriate for replacement parts for such 
applications. When an export or reexport is deemed to make a material

[[Page 295]]

contribution to the proliferation of missiles, the license will be 
denied.
    (2) The following factors are among those that will be considered in 
reviewing individual applications.
    (i) The specific nature of the end-use;
    (ii) The significance of the export and reexport in terms of its 
contribution to the design, development, production, or use of missiles;
    (iii) The capabilities and objectives of the missile and space 
programs of the recipient country;
    (iv) The nonproliferation credentials of the importing country;
    (v) The types of assurances or guarantees against design, 
development, production, or use of missiles that are given in a 
particular case; and
    (vi) The existence of a preexisting contract.
    (3) Controls on other items. BIS will review license applications, 
in accordance with the licensing policy described in paragraph (b)(1) of 
this section, for items not described in paragraph (a) of this section 
that:
    (i) Require a validated license for reasons other than short supply; 
and
    (ii) Could be destined for the design, development, production, or 
use of missiles, or for a facility engaged in such activities.
    (c) Contract sanctity. The following contract sanctity dates have 
been established:
    (1) License applications for batch mixers specified in ECCN 1B117 
involving contracts that were entered into prior to January 19, 1990, 
will be considered on a case-by-case basis.
    (2) License applications subject to ECCN 1B115.b or .c that involve 
a contract entered into prior to March 7, 1991, will be considered on a 
case-by-case basis.
    (3) Applicants who wish that a pre-existing contract be considered 
in reviewing their license applications must submit documentation 
sufficient to establish the existence of a contract.
    (d) Missile Technology Control Regime. Missile Technology Control 
Regime (MTCR) members are listed in Country Group A:2 (see Supplement 
No. 1 to part 740 of the EAR). Controls on items identified in paragraph 
(a) of this section are consistent with the list agreed to in the MTCR 
and included in the MTCR Annex.

[61 FR 12786, Mar. 25, 1996, as amended at 68 FR 16147, Apr. 2, 2003]