FEDERAL REGISTER VOL. 58, No. 139 Rules and Regulations DEPARTMENT OF STATE Bureau of Politico-Military Affairs 22 CFR Parts 120, 121, 122, 123, 124, 125, 126, 127, 128, and 130 [Public Notice 1832] Amendments to the International Traffic in Arms Regulations Part II 58 FR 39280 DATE: Thursday, July 22, 1993 ACTION: Final rule. SUMMARY: This rule amends the regulations implementing section 38 of the Arms Export Control Act, which governs the import and export of defense articles and services. The rule clarifies existing regulations and reduces the regulatory burden on exporters of defense articles and services. Although this is a final rule public comment is welcome and will be taken into account to the extent possible. EFFECTIVE DATE: This final rule is effective July 22, 1993. FOR FURTHER INFORMATION CONTACT: Information regarding this notice may be obtained from James Andrew Lewis, U.S. Department of State, Bureau of Politico-Military Affairs (202-647-4231), Mal Zerden or Allan Suchinsky, U.S. Department of State, Office of Defense Trade Controls (703-875-6644). SUPPLEMENTARY INFORMATION: The regulations implementing section 38 of the Arms Export Control Act were last revised substantially in November 1984. A proposed rule was published on May 7, 1992 (57 FR 19666), for public comment. This Final Rule clarifies and simplifies the current regulations. Certain sections are consolidated while others are revised in the interests of clarity and consistency. To the extent possible, related sections are cross-referenced. In amending the regulations, public comments and suggestions from industry and other U.S. agencies have been considered and in many cases incorporated into the regulations. The most significant changes are an increase in the validity period of a license from three to four years and a revision of the policy used by the Department for designating defense articles that takes into account civil application and functional equivalence. Several new exemptions from licensing PAGE 3 58 FR 39280, * FOCUS requirements are also established. These exemptions will cover exports under approved manufacturing or technical assistance agreements; spare parts valued a t $ 500 or less; intra-company transfers of components being sent abroad for assembly; temporary imports for repair and servicing; and items which were previously licensed for temporary export to trade shows. Other changes include a clarification of the commodity jurisdiction process, which establishes a review period and specifies the appeal process. The definition of public domain is expanded and clarified. An exception allows for the re-export of certain U.S.-origin components to the Governments of NATO countries, and the Governments of Japan and Australia without prior U.S. approval for components which are not significant military equipment or controlled for purposes of the Missile Technology Control Regime and do not require Congressional notification. Specific Changes The Office of Munitions Control was renamed the Office of Defense Trade Controls on January 8, 1990. All references to the Office of Munitions Control are now referred to as the Office of Defense Trade Controls. For clarification, all references to the Assistant Secretary for Politico-Military Affairs are replaced by Assistant Secretary of State for Politico-Military Affairs. Due to a change in office designation, all references to the Under Secretary of State fo r Security Assistance, Science and Technology are replaced by Under Secretary of State for International Security Affairs. There has been extensive renumbering due to the deletion, consolidation and addition of sections in the regulations. Sections in which there are substantiv e changes are noted below. These section designations refer to the new section numbers. Section 120.1 General Section 120.1(b) adds reference to retransfer approvals for clarification an d lists the Department officials authorized to exercise the authorities of the subchapter. Section 120.1(c) adds a new section which specifies that exemptions in this subchapter do not apply to exporters who have been convicted of violating certain U.S. criminal statutes or are debarred. Section 120.3 Policy for Designating and Determining Defense Articles and Services The policy on designating defense articles and services in the future has been amended to take into consideration civil application, functional equivalence, and the significance of the military or intelligence applicability of articles and services. Section 120.4 Commodity Jurisdiction The title is changed from Commodity jurisdiction and redesignated @ 120.4 (previously @ 120.5). Establishes criteria used by State for determination of export licensing jurisdiction. Establishes a review period and specifies the appeal process, with a fixed review period, for commodity jurisdiction determinations. PAGE 4 58 FR 39280, * FOCUS Section 120.5 Relation to Regulations of Other Agencies Redesignates section number (previously 120.4). Clarifies the licensing role s and responsibilities of other U.S. Government agencies. Section 120.6 Defense Article Clarifies the definition to specify the inclusion of components, parts, accessories, attachments and associated equipment. Clarifies the definition of models and mockups. Section 120.8 Major Defense Equipment This is a new section which defines major defense equipment. Section 120.9 Defense Service Modifies the definition to be consistent with the revised definition of technical data. Section 120.10 Technical Data Modifies the definition to include certain types of software. Clarifies the definition by explicitly identifying assembly and reconstruction of defense articles. Section 120.11 Public Domain Adds methods by which technical data may be considered to be in the public domain and includes a definition of fundamental research. Section 120.12 Office of Defense Trade Controls Identifies the name and address of the subject office. Section 120.16 Foreign Person Modifies the definition to fit 8 U.S.C. 1324 (a)(3) and address the term protected individual, consistent with the Immigration and Nationality Act, as amended. Section 120.17 Export Modifies the definition to include transfers in the United States of defense articles to embassies or other agencies of foreign governments. Section 120.18 Import-Temporary Changes title from In-transit shipment and clarifies the definition. [*39281] Section 120.19 Reexport or Retransfer PAGE 5 58 FR 39280, *39281 FOCUS This is a new section which defines reexport and retransfer as the transfer to an end use or end user or destination not previously defined. Section 120.20 License Changes wording referring to temporary import to agree with Section 120.18, and specifies that licenses are for items controlled by this subchapter. Section 120.22 Technical Assistance Agreement Clarifies the services covered under this type of agreement. Section 120.23 Distribution Agreement Adds a definition of distribution agreement. Section 120.28 Listing of Forms Referred to in This Subchapter Lists the specific office within each agency from which forms are available. Section 120.29 Missile Technology Control Regime This is a new section which defines the Missile Technology Control Regime consistent with section 71(a) of the Arms Export Control Act. Part 121 The United States Munitions List Federal Register Notices modifying the U.S. munitions list have recently bee n published. Under these proposals, technical data is included as a subcategory under each munitions list category. Section 121.12 Military Explosives Provides a definition of military explosives and more specifically indicates the types of explosives covered under category V. Section 121.15 Vessels of War and Special Naval Equipment Provides a definition of vessels of war and special naval equipment. Section 121.16 Missile Technology Control Regime Annex This new section lists the defense articles on the MTCR annex. Section 122.4 Notification of Changes in Information Furnished By Registrants Provides that mergers and acquisitions of registrants must be notified to th e Office of Defense Trade Controls. Section 122.5 Maintenance of Records By Registrants Clarifies what records are to be maintained during the mandatory period for record maintenance. Changes the maintenance period from seven to five years. PAGE 6 58 FR 39280, *39281 FOCUS Section 123.1 Requirement for Export or Temporary Import Licenses Enumerates licensing and documentation requirements including those previously specified under @ 123.22. Section 123.2 Import Jurisdiction Clarifies the regulatory authority over temporary and permanent import of defense articles into the U.S. Section 123.3 Temporary Import Licenses Clarifies the requirements for temporary import licenses and associated exemptions. Section 123.4 Temporary Import License Exemptions Establishes a licensing exemption for defense articles temporarily imported into the U.S. for servicing and return to the country from which they were imported. Establishes criteria and procedures for use of the exemption. Section 123.5 Temporary Export Licenses Establishes criteria and procedures for temporary export of defense articles . References the new four year validity period for licenses. Section 123.6 Foreign Trade Zones and U.S. Customs Bonded Warehouses Clarifies the procedure for handling classified defense articles including technical data. Section 123.7 Exports to Warehouses or Distribution Points Outside the United States Clarifies that certain exemptions may apply to exports under this subchapter . Section 123.9 Country of Ultimate Destination and Approval of Reexports or Retransfers Establishes procedures for obtaining approval for the reexport or retransfer or change in end use of a defense article. Provides for an exemption for the reexport of defense articles to the Governments of NATO countries, and the Governments of Japan and Australia for the reexport of articles which are not significant military equipment or controlled for purposes of the Missile Technology Control Regime and which do not require Congressional notification. Section 123.10 Non-transfer and Use Assurances Modifies the section to move congressional notification. A new section (123.15) is created to address congressional notifications. Clarifies the assurances requirement by explicitly addressing usage assurances. Section 123.11 Movements of Vessels and Aircraft Covered By the U.S. Munitions List Outside the United States PAGE 7 58 FR 39280, *39281 FOCUS Changes section title. Section 123.12 Shipments Between U.S. Possessions Clarifies that licensing requirements under this section do not apply to direct shipment of defense articles under this section. Section 123.14 Import Certificate/Delivery Verification Procedure Eliminates specific identification of countries subject to this procedure. Section 123.15 Congressional Notification for Licenses Previously covered by @ 123.10(e). Provides additional information to clarif y the Department's requirement. Section 123.16 Exemptions of General Applicability Provides for additional licensing exemptions for the export of unclassified defense articles and procedures for utilizing these exemptions. The exemption for obsolete nonautomatic firearms (@ 123.16(a)) has been moved to @ 123.17. This section creates exemptions for: The export of unclassified defense article s in furtherance of approved agreements; spare parts valued at $ 500 or less; components, tools or test equipment being sent abroad for assembly and return b y the same company; and unclassified defense articles being temporarily exported to trade shows when the article has previously been licensed for this purpose. Section 123.17 Exports of Firearms and Ammunition Moves @ 123.16(a) to @ 123.17(a). Section 123.21 Duration, Renewal and Disposition of Licenses Modifies title to add the word duration. Changes the validity period for licenses from three to four years. Clarifies that a license expires when the total value authorized has been shipped. Section 123.22 Filing of Export Licenses and Shipper's Export Declarations With District Directors of Customs Modifies the title to omit the word and in-transit. Clarifies the procedures for filing of export licenses and Shipper's Export Declarations with [*39282] District Directors of Customs. Explains procedures for self-endorsement of licenses when appropriate. Establishes a new procedure for exports of unclassified technical data. Section 123.23 Monetary Value of Shipments New title. Section incorporates the provisions of previous @ 123.25(d) and clarifies the dollar thresholds for Congressional Notification. Section 123.24 Shipments by Mail PAGE 8 58 FR 39280, *39282 FOCUS Allows self-endorsement of license. Section 123.25 Amendments to Licenses Creates new section to address the amendment process. Section 124.1 Manufacturing License Agreements and Technical Assistance Agreements Divides previous @ 124.1(b) into two sections, one addressing substantive amendments, the other addressing minor amendments. Section 124.7 Information Required in All Manufacturing License Agreements and Technical Assistance Agreements New title combining previous titles of @@ 124.7 and 124.8. Consolidates information in @ 124.7. Section 124.10 Nontransfer and Use Assurances Eliminates reference to General Security of Information Agreements and other foreign government security assurances. Section 124.11 Congressional Notification for Agreements Creates a new section which explains the requirements under the Arms Export Control Act that certain agreements are subject to Congressional notification prior to approval. Section 124.12 Required Information in Letters of Transmittal Revises the reporting requirement threshold pursuant to section 130 to $ 500,000 or more. Adds a clause relating to sublicensing arrangements. Section 124.13 Procurement by U.S. Persons (Offshore Procurement) Allows technical data which discloses details of design or production necessary for bid purposes. Section 124.14 Exports to Warehouses or Distribution Points Outside the United States Specifies that the exemption under @ 123.16(b)(1) may be applicable for the export of unclassified defense articles in furtherance of approved agreements. Corrects misnumbered paragraphs. Section 125.1 Exports Subject to This Part Clarifies that technical data authorized for export may not be retransferred from the authorized end-user without prior approval. Section 125.2 Exports of Unclassified Technical Data PAGE 9 58 FR 39280, *39282 FOCUS Clarifies the licensing procedure for export (and return to the U.S.) of unclassified technical data. Specifies the number of copies of technical data required for submission. Incorporates requirements previously contained in @ 125.7(b). Section 125.4 Exemptions of General Applicability Clarifies that if prior approval or prior notification are necessary, those requirements must first be met before any exemption under this section may be used. Section 125.6 Exemptions-Certification Requirements Title change to include the word Exemptions. Specifies that certifications must be in written form and retained by the exporter for a period of five years . Clarifies the procedure for certification in the absence of Customs or Postal officials. Section 125.7 Procedures for the Export of Classified Technical Data and Other Classified Defense Articles Title change and specifies that only one copy of data or descriptive literature is required for license renewals. Section 125.8 Filing of Licenses for Exports of Unclassified Technical Data Clarifies the procedure for self-endorsement of licenses. Section 126.1 Prohibited Exports and Sales to Certain Countries Revises list of prohibited countries to reflect current policy and country identifications. Section 126.4 Shipments by or for United States Government Agencies Clarifies that this section also applies to temporary imports and temporary exports and that certain transfers that result in incorporating U.S.-origin defense articles into foreign-owned launches or satellites to be launched overseas are permanent exports requiring the prior approval of the Department. Section 126.5 Canadian Exemptions Clarifies that a license is not required for the permanent or temporary import from Canada of certain defense articles. Section 126.10 Disclosure of Information to the Public Reference to the Under Secretary for Security Assistance, Science, and Technology is replaced by Under Secretary of State for International Security Affairs. Section 126.13 Required Information PAGE 10 58 FR 39280, *39282 FOCUS Advises the provision of a Technology Transfer Control Plan in cases when foreign nationals are employed at or assigned to security cleared facilities. Section 127.4 Authority of U.S. Customs Service Officers Specifies the authority of the Customs Service Officers. Section 127.5 Authority of Defense Investigative Service Specifies the authority of the Defense Investigative Service in the case of exports of classified defense articles, including technical data. Section 127.10 Past Violations Clarifies the authority of the Office of Defense Trade Controls with respect to making exceptions to cases that have been denied and addresses consultation with other offices and agencies. Section 127.12 Voluntary Disclosures Includes a provision encouraging exporters to voluntarily disclose in writin g information regarding possible violations. Part 130 Political Contributions, Fees and Commissions The reporting requirement threshold is increased from $ 250,000 to $ 500,000 . This amendment involves a foreign affairs function of the United States, and thus is excluded from the major rule procedures of Executive Order 12291 (46 FR 13193) and the procedures of the Administrative Procedure Act (5 U.S.C. 553 and 554). In addition, this rule affects collection of information subject to the Paperwork Reduction Act (44 U.S.C. 3501 et. seq.), and will serve to reduce the burden on exporters in that respect. The relevant information collection is to be reviewed by the Office of Management and Budget under control no. 1405-0013. List of Subjects 22 CFR Parts 120 and 125 Arms and munitions, Classified information, Exports. [*39283] 22 CFR Part 121 Arms and munitions, Exports, U.S. munitions list. 22 CFR Part 122 Arms and munitions, Exports, Reporting and recordkeeping requirements. 22 CFR Parts 123 and 126 Arms and munitions, Exports. PAGE 11 58 FR 39280, *39283 FOCUS 22 CFR Part 124 Arms and munitions, Exports, Technical assistance. 22 CFR Part 127 Arms and munitions, Crime, Exports, Penalties, Seizures and forfeitures. 22 CFR Part 128 Administrative procedures, Arms and munitions, Exports. 22 CFR Part 130 Arms and munitions, Campaign funds, Confidential business information, Exports, Reporting and recordkeeping requirements. Accordingly, for the reasons set forth in the preamble, 22 CFR subchapter M is amended by revising parts 120, 121, 122, 123, 124, 125, 126, 127, 128 and 13 0 to read as follows: SUBCHAPTER M-INTERNATIONAL TRAFFIC IN ARMS REGULATIONS PART 120-PURPOSE AND DEFINITIONS Sec. 120.1 General authorities and eligibility. 120.2 Designation of defense articles and defense services. 120.3 Policy on designating and determining defense articles and services. 120.4 Commodity jurisdiction. 120.5 Relation to regulations of other agencies. 120.6 Defense article. 120.7 Significant military equipment. 120.8 Major defense equipment. 120.9 Defense service. 120.10 Technical data. 120.11 Public domain. 120.12 Office of Defense Trade Controls. 120.13 United States. PAGE 12 58 FR 39280, *39283 FOCUS 120.14 Person. 120.15 U.S. person. 120.16 Foreign person. 120.17 Export. 120.18 Temporary import. 120.19 Reexport or retransfer. 120.20 License. 120.21 Manufacturing license agreement. 120.22 Technical assistance agreement. 120.23 Distribution agreement. 120.24 District Director of Customs. 120.25 Empowered Official. 120.26 Presiding Official. 120.27 U.S. criminal statutes. 120.28 Listing of forms referred to in this subchapter. 120.29 Missile Technology Control Regime. Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 U.S.C. 2752 , 2778, 2797); E.O. 11958, 42 FR 4311; 3 CFR 1977 Comp. p. 79; 22 U.S.C. 2658. @ 120.1 -- General authorities and eligibility. (a) Section 38 of the Arms Export Control Act (22 U.S.C. 2778) authorizes th e President to control the export and import of defense articles and defense services. The statutory authority of the President to promulgate regulations with respect to exports of defense articles and defense services was delegated to the Secretary of State by Executive Order 11958, as amended (42 FR 4311). This subchapter implements that authority. By virtue of delegations of authorit y by the Secretary of State, these regulations are primarily administered by the Director of the Office of Defense Trade Controls, Bureau of Politico-Military Affairs, Department of State. (b) Authorized Officials. All authorities conferred upon the Director of the Office of Defense Trade Controls by this subchapter may be exercised at any tim e by the Under Secretary of State for International Security Affairs, the Assistant Secretary of State for Politico-Military Affairs, or the Deputy Assistant Secretary of State for Politico-Military Affairs responsible for supervising the Office of Defense Trade Controls unless the Legal Adviser or PAGE 13 58 FR 39280, *39283 FOCUS the Assistant Legal Adviser for Politico-Military Affairs of the Department of State determines that any specific exercise of this authority under this subsection may be inappropriate. (c) Eligibility. Only U.S. persons (as defined in @ 120.15) and foreign governmental entities in the United States may be granted licenses or other approvals (other than retransfer approvals sought pursuant to this subchapter). Foreign persons (as defined in @ 120.16) other than governments are not eligible. U.S. persons who have been convicted of violating the criminal statutes enumerated in @ 120.27, who have been debarred pursuant to part 127 or 128 of this subchapter, who are the subject of an indictment involving the criminal statutes enumerated in @ 120.27, who are ineligible to contract with, or to receive a license or other form of authorization to import defense articles or defense services from any agency of the U.S. Government, who are ineligible to receive export licenses (or other forms of authorization to export) from any agency of the U.S. Government, who are subject to Department o f State Suspension/Revocation under @ 126.7 (a)(1)-(a)(7) of this subchapter, or who are ineligible under @ 127.6(c) of this subchapter are generally ineligible . Applications for licenses or other approvals will be considered only if the applicant has registered with the Office of Defense Trade Controls pursuant to part 122 of this subchapter. All applications and requests for approval must be signed by a U.S. person who has been empowered by the registrant to sign such documents. (d) The exemptions provided in this subchapter do not apply to transactions in which the exporter or any party to the export (as defined in @ 126.7(e) of this subchapter) is generally ineligible as set forth above in paragraph (c) of this section, unless an exception has been granted pursuant to @ 126.7(c) of this subchapter. @ 120.2 -- Designation of defense articles and defense services. The Arms Export Control Act (22 U.S.C. 2778(a) and 2794(7)) provides that th e President shall designate the articles and services deemed to be defense articles and defense services for purposes of this subchapter. The items so designated constitute the United States Munitions List and are specified in par t 121 of this subchapter. Such designations are made by the Department of State with the concurrence of the Department of Defense. For a determination on whether a particular item is included on the U.S. Munitions List see @ 120.4(a) . @ 120.3 -- Policy on designating and determining defense articles and services. An article or service may be designated or determined in the future to be a defense article (see @ 120.6) or defense service (see @ 120.9) if it: (a) Is specifically designed, developed, configured, adapted, or modified fo r a military application, and (i) Does not have predominant civil applications, and (ii) Does not have performance equivalent (defined by form, fit and function ) to those of an article or service used for civil applications; or PAGE 14 58 FR 39280, *39283 FOCUS (b) Is specifically designed, developed, configured, adapted, or modified fo r a military application, and has significant military or intelligence applicability such that control under this subchapter is necessary. The intended use of the article or service after its export (i.e., for a military or civilian purpose) is not relevant in determining whether the articl e or service is subject to the controls of this subchapter. Any item covered by the U.S. Munitions List must [*39284] be within the categories of the U.S. Munitions List. The scope of the U.S. Munitions List shall be changed only by amendments made pursuant to section 38 of the Arms Export Control Act (22 U.S.C . 2778). @ 120.4 -- Commodity jurisdiction. (a) The commodity jurisdiction procedure is used with the U.S. Government if doubt exists as to whether an article or service is covered by the U.S. Munitions List. It may also be used for consideration of a redesignation of an article or service currently covered by the U.S. Munitions List. The Department must submit a report to Congress at least 30 days before any item is removed from the U.S. Munitions List. Upon written request, the Office of Defense Trade Controls shall provide a determination of whether a particular article or service is covered by the U.S. Munitions List. The determination, consistent with @@ 120.2, 120.3, and 120.4, entails consultation among the Departments of State, Defense, Commerce and other U.S. Government agencies and industry in appropriate cases. (b) Registration with the Office of Defense Trade Controls as defined in par t 122 of this subchapter is not required prior to submission of a commodity jurisdiction request. If it is determined that the commodity is a defense article or service covered by the U.S. Munitions List, registration is required for exporters, manufacturers, and furnishers of defense articles and defense services (see part 122 of this subchapter). (c) Requests shall identify the article or service, and include a history of the product's design, development and use. Brochures, specifications and any other documentation related to the article or service shall be submitted in seven collated sets. (d)(1) A determination that an article or service does not have predominant civil applications shall be made by the Department of State, in accordance with this subchapter, on a case-by-case basis, taking into account: (i) The number, variety and predominance of civil applications; (ii) The nature, function and capability of the civil applications; and (iii) The nature, function and capability of the military applications. (2) A determination that an article does not have the performance equivalent , defined by form, fit and function, to those used for civil applications shall b e made by the Department of State, in accordance with this subchapter, on a case-by-case basis, taking into account: PAGE 15 58 FR 39280, *39284 FOCUS (i) The nature, function, and capability of the article; (ii) Whether the components used in the defense article are identical to those components originally developed for civil use. Note: The form of the item is its defined configuration, including the geometrically measured configuration, density, and weight or other visual parameters which uniquely characterize the item, component or assembly. For software, form denotes language, language level and media. The fit of the item is its ability to physically interface or interconnect with or become an integral part of another item. The function of the item is the action or action s it is designed to perform. (3) A determination that an article has significant military or intelligence applications such that it is necessary to control its export as a defense article shall be made, in accordance with this subchapter, on a case-by-case basis, taking into account: (i) The nature, function, and capability of the article; (ii) The nature of controls imposed by other nations on such items (includin g COCOM and other multilateral controls), and (iii) That items described on the COCOM Industrial List shall not be designated defense articles or defense services unless the failure to control such items on the U.S. Munitions List would jeopardize significant national security or foreign policy interests. (e) The Office of Defense Trade Controls will provide a preliminary response within 10 working days of receipt of a complete request for commodity jurisdiction. If after 45 days the Office of Defense Trade Controls has not provided a final commodity jurisdiction determination, the applicant may reques t in writing to the Director, Center for Defense Trade that this determination be given expedited processing. (f) State, Defense and Commerce will resolve commodity jurisdiction disputes in accordance with established procedures. State shall notify Defense and Commerce of the initiation and conclusion of each case. (g) A person may appeal a commodity jurisdiction determination by submitting a written request for reconsideration to the Director of the Center for Defense Trade. The Center for Defense Trade will provide a written response of the Director's determination within 30 days of receipt of the appeal. If desired, a n appeal of the Director's decision can then be made directly to the Assistant Secretary for Politico-Military Affairs. @ 120.5 -- Relation to regulations of other agencies. If an article or service is covered by the U.S. Munitions List, its export i s regulated by the Department of State, except as indicated otherwise in this subchapter. For the relationship of this subchapter to regulations of the Department of Commerce, the Department of Energy and the Nuclear Regulatory Commission, see @ 123.20 of this subchapter. The Treasury Department controls permanent imports of articles and services covered by the U.S. Munitions Import List from foreign countries by persons subject to U.S. jurisdiction (31 CFR PAGE 16 58 FR 39280, *39284 FOCUS part 505). The Department of Commerce regulates the export of items on the Commerce Control List (CCL) under the Export Administration Regulations (15 CFR parts 768-799). @ 120.6 -- Defense article. Defense article means any item or technical data designated in @ 121.1 of this subchapter. The policy described in @ 120.3 is applicable to designations of additional items. This term includes technical data recorded or stored in an y physical form, models, mockups or other items that reveal technical data directly relating to items designated in @ 121.1 of this subchapter. It does no t include basic marketing information on function or purpose or general system descriptions. @ 120.7 -- Significant military equipment. (a) Significant military equipment means articles for which special export controls are warranted because of their capacity for substantial military utility or capability. Section 47(6) of the Arms Export Control Act (22 U.S.C. 2794(6) note) refers to significant combat equipment on the U.S. Munitions List . The terms significant military equipment and significant combat equipment are equivalent for purposes of that section of the Arms Export Control Act and this subchapter. (b) Significant military equipment includes: (1) Items in @ 121.1 of this subchapter which are preceded by an asterisk; and (2) All classified articles enumerated in @ 121.1 of this subchapter. @ 120.8 -- Major defense equipment. Pursuant to section 47(6) of the Arms Export Control Act (22 U.S.C. 2794(6) note), major defense equipment means any item of significant military equipment (as defined in @ 120.7) on the U.S. Munitions List having a nonrecurring research and development cost of more than $ 50,000,000 or a total [*39285] production cost of more than $ 200,000,000. @ 120.9 -- Defense service. Defense service means: (1) The furnishing of assistance (including training) to foreign persons, whether in the United States or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles ; or (2) The furnishing to foreign persons of any technical data controlled under this subchapter (see @ 120.10), whether in the United States or abroad. @ 120.10 -- Technical data. PAGE 17 58 FR 39280, *39285 FOCUS Technical data means, for purposes of this subchapter: (1) Information, other than software as defined in @ 120.10(d), which is required for the design development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of defense articles. This includes information in the form of blueprints, drawings, photographs, plans, instructions and documentation. (2) Classified information relating to defense articles and defense services ; (3) Information covered by an invention secrecy order; (4) Software as defined in @ 121.8(f) of this subchapter directly related to defense articles; (5) This definition does not include information concerning general scientific, mathematical or engineering principles commonly taught in schools, colleges and universities or information in the public domain as defined in @ 120.11. It also does not include basic marketing information on function or purpose or general system descriptions of defense articles. @ 120.11 -- Public domain. Public domain means information which is published and which is generally accessible or available to the public: (1) Through sales at newsstands and bookstores; (2) Through subscriptions which are available without restriction to any individual who desires to obtain or purchase the published information; (3) Through second class mailing privileges granted by the U.S. Government; (4) At libraries open to the public or from which the public can obtain documents; (5) Through patents available at any patent office; (6) Through unlimited distribution at a conference, meeting, seminar, trade show or exhibition, generally accessible to the public, in the United States; (7) Through public release (i.e., unlimited distribution) in any form (e.g., not necessarily in published form) after approval by the cognizant U.S. government department or agency (see also @ 125.4(b)(13) of this subchapter); (8) Through fundamental research in science and engineering at accredited institutions of higher learning in the U.S. where the resulting information is ordinarily published and shared broadly in the scientific community. Fundamenta l research is defined to mean basic and applied research in science and engineering where the resulting information is ordinarily published and shared broadly within the scientific community, as distinguished from research the results of which are restricted for proprietary reasons or specific U.S. Government access and dissemination controls. University research will not be considered fundamental research if: PAGE 18 58 FR 39280, *39285 FOCUS (i) The University or its researchers accept other restrictions on publication of scientific and technical information resulting from the project or activity, or (ii) The research is funded by the U.S. Government and specific access and dissemination controls protecting information resulting from the research are applicable. @ 120.12 -- Office of Defense Trade Controls. Office of Defense Trade Controls, Bureau of Politico-Military Affairs, Department of State, Washington, D.C. 20522-0602. @ 120.13 -- United States. United States, when used in the geographical sense, includes the several states, the Commonwealth of Puerto Rico, the insular possessions of the United States, the District of Columbia, the Commonwealth of the Northern Mariana Islands, any territory or possession of the United States, and any territory or possession over which the United States exercises any powers of administration, legislation, and jurisdiction. @ 120.14 -- Person. Person means a natural person as well as a corporation, business association , partnership, society, trust, or any other entity, organization or group, including governmental entities. If a provision in this subchapter does not refer exclusively to a foreign person (@ 120.16) or U.S. person (@ 120.15), the n it refers to both. @ 120.15 -- U.S. person. U.S. person means a person (as defined in @ 120.14 of this part) who is a protected individual as defined by 8 U.S.C. 1324b(a)(3). It also means any corporation, business association, partnership, society, trust or any other entity, organization or group that is incorporated to do business in the United States. It also includes any governmental (federal, state or local) entity. It does not include any foreign person as defined in @ 120.16 of this part. @ 120.16 -- Foreign person. Foreign person means any natural person who is not a protected individual as defined by 8 U.S.C. 1324b(a)(3). It also means any foreign corporation, busines s association, partnership, trust, society or any other entity or group that is not incorporated or organized to do business in the United States, as well as international organizations, foreign governments and any agency or subdivision of foreign governments (e.g diplomatic missions). @ 120.17 -- Export. Export means: (1) Sending or taking a defense article out of the United States in any manner, except by mere travel outside of the United States by a person whose PAGE 19 58 FR 39280, *39285 FOCUS personal knowledge includes technical data; or (2) Transferring registration, control or ownership to a foreign person of any aircraft, vessel, or satellite covered by the U.S. Munitions List, whether in the United States or abroad; or (3) Disclosing (including oral or visual disclosure) or transferring in the United States any defense article to an embassy, any agency or subdivision of a foreign government (e.g., diplomatic missions); or (4) Disclosing (including oral or visual disclosure) or transferring technical data to a foreign person, whether in the United States or abroad; or (5) Performing a defense service on behalf of, or for the benefit of, a foreign person, whether in the United States or abroad. (6) A launch vehicle or payload shall not, by reason of the launching of suc h vehicle, be considered an export for purposes of this subchapter. However, for certain limited purposes (see @ 126.1 of this subchapter), the controls of this subchapter may apply to any sale, transfer or proposal to sell or transfer defense articles or defense services. @ 120.18 -- Temporary import. Temporary import means bringing into the United States from a foreign countr y any defense article that is to be returned to the country from which it was shipped or taken, or any defense [*39286] article that is in transit to another foreign destination. Temporary import includes withdrawal of a defense article from a customs bonded warehouse or foreign trade zone for the purpose o f returning it to the country of origin or country from which it was shipped or for shipment to another foreign destination. Permanent imports are regulated by the Department of the Treasury (see 27 CFR parts 47, 178 and 179). @ 120.19 -- Reexport or retransfer. Reexport or retransfer means the transfer of defense articles or defense services to an end use, end user or destination not previously authorized. @ 120.20 -- License. License means a document bearing the word license issued by the Director, Office of Defense Trade Controls or his authorized designee which permits the export or temporary import of a specific defense article or defense service controlled by this subchapter. @ 120.21 -- Manufacturing license agreement. An agreement (e.g., contract) whereby a U.S. person grants a foreign person an authorization to manufacture defense articles abroad and which involves or contemplates: (a) The export of technical data (as defined in @ 120.10) or defense article s or the performance of a defense service; or PAGE 20 58 FR 39280, *39286 FOCUS (b) The use by the foreign person of technical data or defense articles previously exported by the U.S. person. (See part 124 of this subchapter). @ 120.22 -- Technical assistance agreement. An agreement (e.g., contract) for the performance of a defense service(s) or the disclosure of technical data, as opposed to an agreement granting a right o r license to manufacture defense articles. Assembly of defense articles is included under this section, provided production rights or manufacturing know-how are not conveyed. Should such rights be transferred, @ 120.21 is applicable. (See part 124 of this subchapter). @ 120.23 -- Distribution agreement. An agreement (e.g., a contract) to establish a warehouse or distribution point abroad for defense articles exported from the United States for subsequen t distribution to entities in an approved sales territory (see part 124 of this subchapter). @ 120.24 -- District Director of Customs. District Director of Customs means the District Directors of Customs at Customs Headquarters Ports (other than the port of New York City, New York, where it is the Area Director of Customs); the Regional Commissioners of Customs, the Deputy and Assistant Regional Commissioners of Customs for Customs Region II at the Port of New York, New York; and Port Directors at Customs port s not designated as Headquarters Ports. @ 120.25 -- Empowered official. Empowered Official means a U.S. person who: (1) Is directly employed by the applicant or a subsidiary in a position having authority for policy or management within the applicant organization; an d (2) Is legally empowered in writing by the applicant to sign license applications or other requests for approval on behalf of the applicant; and (3) Understands the provisions and requirements of the various export contro l statutes and regulations, and the criminal liability, civil liability and administrative penalties for violating the Arms Export Control Act and the International Traffic in Arms Regulations; and (4) Has the independent authority to: (i) Enquire into any aspect of a proposed export or temporary import by the applicant, and (ii) Verify the legality of the transaction and the accuracy of the information to be submitted; and (iii) Refuse to sign any license application or other request for approval without prejudice or other adverse recourse. PAGE 21 58 FR 39280, *39286 FOCUS @ 120.26 -- Presiding official. Presiding official means a person authorized by the U.S. Government to conduct hearings in administrative proceedings. @ 120.27 -- U.S. criminal statutes. For purposes of this subchapter, the phrase U.S. criminal statutes means: (1) Section 38 of the Arms Export Control Act (22 U.S.C. 2778); (2) Section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410); (3) Sections 793, 794, or 798 of title 18, United States Code (relating to espionage involving defense or classified information); (4) Section 16 of the Trading with the Enemy Act (50 U.S.C. App. 16); (5) Section 206 of the International Emergency Economic Powers Act (relating to foreign assets controls; 50 U.S.C. 1705); (6) Section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd-1) or section 104 of the Foreign Corrupt Practices Act (15 U.S.C. 78dd-2); (7) Chapter 105 of title 18, United States Code (relating to sabotage); (8) Section 4(b) of the Internal Security Act of 1950 (relating to communication of classified information; 50 U.S.C. 783(b)); (9) Sections 57, 92, 101, 104, 222, 224, 225, or 226 of the Atomic Energy Ac t of 1954 (42 U.S.C. 2077, 2122, 2131, 2134, 2272, 2274, 2275, and 2276); (10) Section 601 of the National Security Act of 1947 (relating to intelligence identities protection; 50 U.S.C. 421); (11) Section 603(b) or (c) of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C. 5113(b) and (c)); and (12) Section 371 of title 18, United States Code (when it involves conspirac y to violate any of the above statutes). @ 120.28 -- Listing of forms referred to in this subchapter. The forms referred to in this subchapter are available from the following government AGENCY: (a) Department of State, Bureau of Politico-Military Affairs, Office of Defense Trade Controls, Washington, DC. 20522-0602. (1) Application/License for permanent export of unclassified defense article s and related technical data (Form DSP-5). PAGE 22 58 FR 39280, *39286 FOCUS (2) Application for registration (Form DSP-9). (3) Application/License for temporary import of unclassified defense article s (Form DSP-61). (4) Application/License for temporary export of unclassified defense article s (Form DSP-73). (5) Non-transfer and use certificate (Form DSP-83). (6) Application/License for permanent/temporary export or temporary import o f classified defense articles and related classified technical data (Form DSP-85) . (7) Authority to Export Defense Articles and Defense Services sold under the Foreign Military Sales program (Form DSP-94). (b) Department of Commerce, Bureau of Export Administration: (1) International Import Certificate (Form BXA-645P/ATF-4522/DSP-53). (2) Shipper's Export Declaration (Form No. 7525-V). (3) Department of Defense, Defense Security Assistance Agency: Letter of Offer and Acceptance (DD Form 1513). @ 120.29 -- Missile technology control regime. (a) For purposes of this subchapter, Missile Technology Control Regime (MTCR ) means the policy statement [*39287] between the United States, the United Kingdom, the Federal Republic of Germany, France, Italy, Canada, and Japan, announced on April 16, 1987, to restrict sensitive missile-relevant transfers based on the MTCR Annex, and any amendments thereto; (b) The term MTCR Annex means the Guidelines and Equipment and Technology Annex of the MTCR, and any amendments thereto; (c) List of all items on the MTCR Annex. Section 71(a) of the Arms Export Control Act (22 U.S.C. @ 2797) refers to the establishment as part of the U.S. Munitions List of a list of all items on the MTCR Annex, the export of which is not controlled under section 6(l) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(l)), as amended. In accordance with this provision, the list o f MTCR Annex items shall constitute all items on the U.S. Munitions List in @ 121.16 of this subchapter. PART 121-THE UNITED STATES MUNITIONS LIST Enumeration of Articles Sec. 121.1 General. The United States Munitions List. PAGE 23 58 FR 39280, *39287 FOCUS 121.2 Interpretations of the United States Munitions List and the Missile Technology Control Regime Annex. 121.3 Aircraft and related articles. 121.4 Amphibious vehicles. 121.5 Apparatus and devices under Category IV(c). 121.6 Cartridge and shell casings. 121.7 Chemical agents. 121.8 End-items, components, accessories, attachments, parts, firmware, softwar e and systems. 121.9 Firearms. 121.10 Forgings, castings and machined bodies. 121.11 Military demolition blocks and blasting caps. 121.12 Military explosives. 121.13 Military fuel thickeners. 121.14 Propellants. 121.15 Vessels of war and special naval equipment. 121.16 Missile Technology Control Regime Annex. Authority: Sec. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); E.O. 11958, 42 FR 4311; 3 CFR 1977 Comp. p. 79; 22 U.S.C. 2658. Enumeration of Articles @ 121.1 -- General. The United States munitions list. (a) The following articles, services and related technical data are designated as defense articles and defense services pursuant to sections 38 and 47(7) of the Arms Export Control Act (22 U.S.C. 2778 and 2794(7)). Changes in designations will be published in the Federal Register. Information and clarifications on whether specific items are defense articles and services unde r this subchapter may appear periodically in the Defense Trade News published by the Center for Defense Trade. (b) Significant military equipment: An asterisk precedes certain defense articles in the following list. The asterisk means that the article is deemed t o be "significant military equipment" to the extent specified in @ 120.19. The asterisk is placed as a convenience to help identify such articles. (c) Certain items in the following list are placed in brackets. The brackets mean that the item is (1) scheduled to be moved to the licensing jurisdiction PAGE 24 58 FR 39280, *39287 FOCUS of the Department of Commerce upon establishment of a foreign policy control or (2) in the case of spacecraft and related equipment, the item is under review b y an interagency space technical working group. The interagency review will resul t in a recommendation as to whether an item should be moved to the jurisdiction o f the Department of Commerce or to USML category XV which was established for thi s purpose. (d) Missile Technology Control Regime Annex (MTCR). Certain defense articles and services are identified in @ 121.16 as being on the list of MTCR Annex item s on the United States Munitions List. These are articles as specified in @ 120.2 9 of this subchapter and appear on the list at @ 121.16. Category I-Firearms *(a) Nonautomatic, semi-automatic and fully automatic firearms to caliber .5 0 inclusive, and all components and parts for such firearms. (See @ 121.9 and @@ 123.16-123.19 of this subchapter.) (b) Riflescopes manufactured to military specifications, and specifically designed or modified components therefor; firearm silencers and suppressors, including flash suppressors. *(c) Insurgency-counterinsurgency type firearms or other weapons having a special military application (e.g. close assault weapons systems) regardless of caliber and all components and parts therefor. (d) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (c) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. Category II-Artillery Projectors *(a) Guns over caliber .50, howitzers, mortars, and recoilless rifles. *(b) Military flamethrowers and projectors. (c) Components, parts, accessories and attachments for the articles in paragraphs (a) and (b) of this category, including but not limited to mounts an d carriages for these articles. (d) Technical data (as defined in 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (c) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. Category III-Ammunition PAGE 25 58 FR 39280, *39287 FOCUS *(a) Ammunition for the arms in Categories I and II of this section. (See @ 121.6.) (b) Components, parts, accessories, and attachments for articles in paragrap h (a) of this category, including but not limited to cartridge cases, powder bags , bullets, jackets, cores, shells (excluding shotgun shells), projectiles, boosters, fuzes and components therefor, primers, and other detonating devices for such ammunition. (See @ 121.6.) (c) Ammunition belting and linking machines. *(d) Ammunition manufacturing machines and ammunition loading machines (except handloading ones). (e) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (d) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. Category IV-Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines *(a) Rockets (including but not limited to meteorological and other sounding rockets), bombs, grenades, torpedoes, depth charges, land and naval mines, as well as launchers for such defense articles, and demolition blocks and blasting caps. (See @ 121.11.) *(b) Launch vehicles and missile and anti-missile systems including but not limited to guided, tactical and strategic missiles, launchers, and systems. (c) Apparatus, devices, and materials for the handling, control, activation, monitoring, detection, protection, discharge, or detonation of the articles in paragraphs (a) and (b) of this category. (See @ 121.5.) *(d) Missile and space launch vehicle powerplants. *(e) Military explosive excavating devices. *(f) Ablative materials fabricated or semi-fabricated from advanced composites (e.g., silica, graphite, carbon, carbon/carbon, and boron filaments) for the articles in this category that are derived directly from or specificall y developed or modified for defense articles. [*39288] *(g) Non/nuclear warheads for rockets and guided missiles. (h) All specifically designed or modified components, parts, accessories, attachments, and associated equipment for the articles in this category. (i) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (h) of this category. PAGE 26 58 FR 39280, *39288 FOCUS (See @ 125.4 of this subchapter for exemptions.) Technical data directly relate d to the manufacture or production of any defense articles enumerated elsewhere i n this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. Category V-Explosives, Propellants, Incendiary Agents, and Their Constituents *(a) Military explosives. (See @ 121.12.) *(b) Military fuel thickeners. (See @ 121.13.) (c) Propellants for the articles in Categories III and IV of this section. (See @ 121.14.) (d) Military pyrotechnics, except pyrotechnic materials having dual military and commercial use. (e) All compounds specifically formulated for the articles in this category. (f) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (e) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. Category VI-Vessels of War and Special Naval Equipment *(a) Warships, amphibious warfare vessels, landing craft, mine warfare vessels, patrol vessels, auxiliary vessels and service craft, experimental type s of naval ships and any vessels specifically designed or modified for military purposes. (See @ 121.15.) *(b) Turrets and gun mounts, arresting gear, special weapons systems, protective systems, submarine storage batteries, catapults and other components , parts, attachments, and accessories specifically designed or modified for combatant vessels. (c) Mine sweeping equipment, components, parts, attachments and accessories specifically designed or modified therefor. (d) Harbor entrance detection devices, (magnetic, pressure, and acoustic ones) and controls and components therefor. *(e) Naval nuclear propulsion plants, their land prototypes, and special facilities for their construction, support, and maintenance. This includes any machinery, device, component, or equipment specifically developed, designed or modified for use in such plants or facilities. (See @ 123.21 of this subchapter ) (f) All specifically designed or modified components, parts, accessories, attachments, and associated equipment for the articles in this category. PAGE 27 58 FR 39280, *39288 FOCUS (g) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8) directly related to the defense articles enumerated in paragraphs (a) through (f) of this category. (See @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category tha t are designated as Significant Military Equipment (SME) shall itself be designated SME. Category VII-Tanks and Military Vehicles *(a) Military type armed or armored vehicles, military railway trains, and vehicles specifically designed or modified to accommodate mountings for arms or other specialized military equipment or fitted with such items. *(b) Military tanks, combat engineer vehicles, bridge launching vehicles, half-tracks and gun carriers. *(c) Self-propelled guns and howitzers. (d) Military trucks, trailers, hoists, and skids specifically designed, modified, or equipped to mount or carry weapons of Categories I, II and IV or for carrying and handling the articles in paragraph (a) of Categories III and IV. *(e) Military recovery vehicles. *(f) Amphibious vehicles. (See @ 121.4) *(g) Engines specifically designed or modified for the vehicles in paragraph s (a), (b), (c), and (f) of this category. (h) All specifically designed or modified components and parts, accessories, attachments, and associated equipment for the articles in this category, including but not limited to military bridging and deep water fording kits. (i) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (h) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. Category VIII-Aircraft, [Spacecraft] and Associated Equipment *(a) Aircraft, including but not limited to helicopters, non-expansive balloons, drones, and lighter-than-air aircraft, which are specifically designed, modified, or equipped for military purposes. This includes but is not limited to the following military purposes: Gunnery, bombing, rocket or missile launching, electronic and other surveillance, reconnaissance, refueling, aerial mapping, military liaison, cargo carrying or dropping, personnel dropping, airborne warning and control, and military training. (See @ 121.3.) PAGE 28 58 FR 39280, *39288 FOCUS *(b) Military aircraft engines, except reciprocating engines, [and spacecraf t engines] specifically designed or modified for the aircraft in paragraph (a) of this category. *(c) Cartridge-actuated devices utilized in emergency escape of personnel an d airborne equipment (including but not limited to airborne refueling equipment) specifically designed or modified for use with the aircraft, [spacecraft] and engines of the types in paragraphs (a), (b), [and (h)] of this category. (d) Launching and recovery equipment for the articles in paragraph (a) [and (i)] of this category, if the equipment is specifically designed or modified fo r military use [or for use with spacecraft]. Fixed land-based arresting gear is not included in this category. *(e) Inertial navigation systems, aided or hybrid inertial navigation systems, Inertial Measurement Units (IMUs), and Attitude and Heading Reference Systems (AHRS) specifically designed, modified, or configured for military use and all specifically designed components, parts and accessories. For other inertial reference systems and related components refer to Category XII(d). *(f) Developmental aircraft and components thereof which have a significant military applicability, excluding such aircraft and components that have been certified by the Federal Aviation Administration and determined through the commodity jurisdiction procedure specified in @ 120.4 of this subchapter, to be subject to the export control jurisdiction of the Department of Commerce for purposes of section 17(c) of the Export Administration Act, as amended. *(g) Ground effect machines (GEMS) specifically designed or modified for military use, including but not limited to surface effect machines and other ai r cushion vehicles, and all components, parts, and accessories, attachments, and associated equipment specifically designed or modified for use with such machines. (h) * Spacecraft, including manned and unmanned, active and passive satellites (except those listed in Category XV). [(i) Power supplies and energy sources specially designed or modified for spacecraft in paragraph (h).] (j) Components, parts, accessories, attachments, and associated equipment (including ground support equipment) specifically designed or modified for the articles in paragraphs (a) through (i) of this category, excluding aircraft tires and propellors used with reciprocating engines. (k) Technical Data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (j) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. [(l) Non-military aircraft inertial navigation systems, except those systems or components that are standard equipment in civil aircraft, including spare PAGE 29 58 FR 39280, *39288 FOCUS parts and spare units to be used exclusively for the maintenance of inertial navigation equipment incorporated in civil aircraft and that are certified by the Federal Aviation Administration (FAA) as being an integral part of such aircraft.] [(m) Technical data for the design, development, production or manufacture o f [*39289] inertial navigation equipment or its related parts, components or subsystems which are standard equipment in civil aircraft and which are certified by the Federal Aviation Administration as being an integral part of such aircraft. FAA certified inertial navigation systems and all other technica l data associated with such systems is under the licensing jurisdiction of the Department of Commerce.] Category IX-Military Training Equipment (a) Military training equipment including but not limited to attack trainers , radar target trainers, radar target generators, gunnery training devices, antisubmarine warfare trainers, target equipment, armament training units, operational flight trainers, air combat training systems, radar trainers, navigation trainers, and simulation devices related to defense articles. (b) Components, parts, accessories, attachments, and associated equipment specifically designed or modified for the articles in paragraph (a) of this category. (c) Technical Data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) and (b) of this category. (See @ 125.4 for exemptions.). Category X-Protective Personnel Equipment (a) Body armor specifically designed, modified or equipped for military use; articles, including but not limited to clothing, designed, modified or equipped to protect against or reduce detection by radar, infrared (IR) or other sensors ; military helmets equipped with communications hardware, optical sights, slewing devices or mechanisms to protect against thermal flash or lasers, excluding standard military helmets. (b) Partial pressure suits and liquid oxygen converters used in aircraft in Category VIII(a). (c) Protective apparel and equipment specifically designed or modified for use with the articles in paragraphs (a) through (d) in Category XIV. (d) Components, parts, accessories, attachments, and associated equipment specifically designed or modified for use with the articles in paragraphs (a), (b), and (c) of this category. (e) Technical Data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (d) of this category. (Se e @ 125.4 of this subchapter for exemptions.) PAGE 30 58 FR 39280, *39289 FOCUS Category XI-Military [and Space] Electronics (a) Electronic equipment not included in Category XII of the U.S. Munitions List which is specifically designed, modified or configured for military application. This equipment includes but is not limited to: *(1) Underwater sound equipment to include active and passive detection, identification, tracking, and weapons control equipment. *(2) Underwater acoustic active and passive countermeasures and counter-countermeasures. (3) Radar systems, with capabilities such as: *(i) Search, *(ii) Acquisition, *(iii) Tracking, *(iv) Moving target indication, *(v) Imaging radar systems, (vi) Any ground air traffic control radar which is specifically designed or modified for military application. *(4) Electronic combat equipment, such as: (i) Active and passive countermeasures, (ii) Active and passive counter-countermeasures, and (iii) Radios (including transceivers) specifically designed or modified to interfere with other communication devices or transmissions. *(5) Command, control and communications systems to include radios (transceivers), navigation, and identification equipment. (6) Computers specifically designed or developed for military application an d any computer specifically modified for use with any defense article in any category of the U.S. Munitions List. (7) Any experimental or developmental electronic equipment specifically designed or modified for military application or specifically designed or modified for use with a military system. *(b) Electronic systems or equipment specifically designed, modified, or configured for intelligence, security, or military purposes for use in search, reconnaissance, collection, monitoring, direction-finding, display, analysis an d production of information from the electromagnetic spectrum and electronic systems or equipment designed or modified to counteract electronic surveillance or monitoring. A system meeting this definition is controlled under this subchapter even in instances where any individual pieces of equipment PAGE 31 58 FR 39280, *39289 FOCUS constituting the system may be subject to the controls of another U.S. Government agency. Such systems or equipment described above include, but are not limited to, those: (1) Designed or modified to use cryptographic techniques to generate the spreading code for spread spectrum or hopping code for frequency agility. This does not include fixed code techniques for spread spectrum. (2) Designed or modified using burst techniques (e.g., time compression techniques) for intelligence, security or military purposes. (3) Designed or modified for the purpose of information security to suppress the compromising emanations of information-bearing signals. This covers TEMPEST suppression technology and equipment meeting or designed to meet government TEMPEST standards. This definition is not intended to include equipment designe d to meet Federal Communications Commission (FCC) commercial electro-magnetic interference standards or equipment designed for health and safety. [(c) Space electronics: *(1) Electronic equipment specifically designed or modified for spacecraft and spaceflight, and (2) Electronic equipment specifically designed or modified for use with non-military communications satellites. (3) Components, parts, accessories, attachments, and associated equipment specifically designed or modified for use with the equipment in subparagraphs (1) and (2).] (d) Components, parts, accessories, attachments, and associated equipment specifically designed or modified for use with the equipment in paragraphs (a) and (b) of this category, except for such items as are in normal commercial use . (e) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (d) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated as SME. Category XII-Fire Control, Range Finder, Optical and Guidance and Control Equipment *(a) Fire control systems; gun and missile tracking and guidance systems; gu n range, position, height finders, spotting instruments and laying equipment; aiming devices (electronic, optic, and acoustic); bomb sights, bombing computers, military television sighting and viewing units, and periscopes for the articles of this section. *(b) Lasers specifically designed, modified or configured for military application including those used in military communication devices, target designators and range finders, target detection systems, and directed energy PAGE 32 58 FR 39280, *39289 FOCUS weapons. *(c) Infrared focal plane array detectors specifically designed, modified or configured for military use; image intensification and other night sighting equipment or systems specifically designed, modified, or configured for militar y use; second generation and above military image intensification tubes (defined below) specifically designed, developed, modified, or configured for military use, and, infrared, visible, and ultraviolet devices specifically designed, developed, modified, or configured for military application. Note: Special Definition. For purposes of this subparagraph, second and thir d generation image intensifier tubes are defined as having: A peak response within the 0.4 to 1.05 micron wavelength range and incorporating a microchannel plate for electron image amplification having a hole pitch (center-to-center spacing) of less than 25 microns, and having either: (a) An S-20, S-25 or multialkali photocathode; or (b) A semiconductor photocathode; *(d) Inertial platforms and sensors for weapons or weapon systems; guidance, control and stabilization systems except for those systems covered in category VIII; astro-compasses and star trackers and military and [non-military] accelerometers and gyros. For [*39290] aircraft inertial reference systems and related components refer to Category VIII. [(e) Non-military second generation and above image intensification tubes, non-military infrared focal plane arrays, and image intensification tubes identified in paragraph (c) of this section when a part of a commercial system (i.e. those systems originally designed for commercial use). This does not include military systems comprised of non-military specification components.] (f) Components, parts, accessories, attachments and associated equipment specifically designed or modified for the articles in paragraphs (a), (b), (c) and (d) of this category, except for such items as are in normal commercial use . (g) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8) directly related to the defense articles enumerated in paragraphs (a) through (f) of this category. (See @ 125.4 of this subchapter for exemptions.) Technical data directly related to manufacture and production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated as SME. Category XIII-Auxiliary Military Equipment (a) Cameras [including space cameras] and specialized processing equipment therefor, photointerpretation, stereoscopic plotting, and photogrammetry equipment which are specifically designed or modified for military purposes, an d components specifically designed or modified therefor; PAGE 33 58 FR 39280, *39290 FOCUS (b) Information Security Systems and equipment, cryptographic devices, software, and components specifically designed or modified therefor, including: (1) Cryptographic (including key management) systems, equipment, assemblies, modules, integrated circuits, components or software with the capability of maintaining secrecy or confidentiality of information or information systems, except cryptographic equipment and software as follows: (i) Restricted to decryption functions specifically designed to allow the execution of copy protected software, provided the decryption functions are not user-accessible. (ii) Specially designed, developed or modified for use in machines for banking or money transactions, and restricted to use only in such transactions. Machines for banking or money transactions include automatic teller machines, self-service statement printers, point of sale terminals or equipment for the encryption of interbanking transactions. (iii) Employing only analog techniques to provide the cryptographic processing that ensures information security in the following applications: (A) Fixed (defined below) band scrambling not exceeding 8 bands and in which the transpositions change not more frequently than once every second; (B) Fixed (defined below) band scrambling exceeding 8 bands and in which the transpositions change not more frequently than once every ten seconds; (C) Fixed (defined below) frequency inversion and in which the transposition s change not more frequently than once every second; (D) Facsimile equipment; (E) Restricted audience broadcast equipment; (F) Civil television equipment. Note: Special Definition. For purposes of this subparagraph, fixed means tha t the coding or compression algorithm cannot accept externally supplied parameter s (e.g., cryptographic or key variables) and cannot be modified by the user. (iv) Personalized smart cards using cryptography restricted for use only in equipment or systems exempted from the controls of the USML. (v) Limited to access control, such as automatic teller machines, self-service statement printers or point of sale terminals, which protects password or personal identification numbers (PIN) or similar data to prevent unauthorized access to facilities but does not allow for encryption of files or text, except as directly related to the password of PIN protection. (vi) Limited to data authentication which calculates a Message Authenticatio n Code (MAC) or similar result to ensure no alteration of text has taken place, o r to authenticate users, but does not allow for encryption of data, text or other media other than that needed for the authentication. PAGE 34 58 FR 39280, *39290 FOCUS (vii) Restricted to fixed data compression or coding techniques. (viii) Limited to receiving for radio broadcast, pay television or similar restricted audience television of the consumer type, without digital encryption and where digital decryption is limited to the video, audio or management functions. (ix) Software designed or modified to protect against malicious computer damage, (e.g., viruses). Note: A procedure has been established to facilitate the expeditious transfe r to the Commodity Control List of mass market software products with encryption that meet specified criteria regarding encryption for the privacy of data and the associated key management. Requests to transfer commodity jurisdiction of mass market software products designed to meet the specified criteria may be submitted in accordance with the commodity jurisdiction provisions of @ 120.4. Questions regarding the specified criteria or the commodity jurisdiction proces s should be addressed to the Office of Defense Trade Controls. All mass market software products with cryptography that were previously granted transfers of commodity jurisdiction will remain under Department of Commerce control. Mass market software governed by this note is software that is generally available t o the public by being sold from stock at retail selling points, without restriction, by means of over the counter transactions, mail order transactions , or telephone call transactions; and designed for installation by the user without further substantial support by the supplier. (2) Cryptographic (including key management) systems, equipment, assemblies, modules, integrated circuits, components or software which have the capability of generating spreading or hopping codes for spread spectrum systems or equipment. (3) Cryptanalytic systems, equipment, assemblies, modules, integrated circuits, components or software. (4) Systems, equipment, assemblies, modules, integrated circuits, components or software providing certified or certifiable multi-level security or user isolation exceeding class B2 of the Trusted Computer System Evaluation Criteria (TCSEC) and software to certify such systems, equipment or software. (5) Ancillary equipment specifically designed or modified for paragraphs (b) (1), (2), (3), (4) and (5) of this category; (c) Self-contained diving and underwater breathing apparatus as follows: (1) Closed and semi-closed circuits (rebreathing) apparatus; (2) Specially designed components for use in the conversion of open-circuit apparatus to military use; and (3) Articles exclusively designed for military use with self-contained divin g and underwater swimming apparatus. (d) Carbon/carbon billets and preforms which are reinforced with continuous unidirectional tows, tapes, or woven cloths in three or more dimensional PAGE 35 58 FR 39280, *39290 FOCUS planes (i.e. 3D, 4D, etc.). This is exclusive of carbon/carbon billets and preforms where reinforcement in the third dimension is limited to interlocking of adjacent layers only, and carbon/carbon 3D, 4D, etc. end items which have no t been specifically designed or modified for defense articles (e.g., brakes for commercial aircraft or high speed trains). Armor (e.g., organic, ceramic, metallic), and reactive armor which has been specifically designed or modified for defense articles. Structural materials including carbon/carbon and metal matrix composites, plate, forgings, castings, welding consumables and rolled an d extruded shapes which have been specifically designed or modified for defense articles. (e) Concealment and deception equipment, including but not limited to specia l paints, decoys, and simulators and components, parts and accessories specifically designed or modified therefor. (f) Energy conversion devices for producing electrical energy from nuclear, thermal, or solar energy, or from chemical reaction which are specifically designed or modified for military application. (g) Chemiluminescent compounds and solid state devices specifically designed or modified for military application. (h) Devices embodying particle beam and electromagnetic pulse technology and associated components and subassemblies (e.g., ion beam current injectors, particle accelerators for neutral or charged particles, beam handling and projection equipment, beam steering, fire control, and pointing equipment, test and diagnostic instruments, and targets) which are specifically designed or modified for directed energy weapon applications. (i) Metal embrittling agents. *(j) Hardware and equipment, which has been specifically designed or modifie d for military applications, that is associated with [*39291] the measurement or modification of system signatures for detection of defense articles. This includes but is not limited to signature measurement equipment; prediction techniques and codes; signature materials and treatments; and signature control design methodology. (k) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) related to the defense articles listed in this category. (See @ 125.4 of this subchapter for exemptions; see also @ 123.21 of this subchapter). Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipmen t (SME) shall itself be designated as SME. Category XIV-Toxicological Agents and Equipment and Radiological Equipment *(a) Chemical agents, including but not limited to lung irritants, vesicants , lachrymators, tear gases (except tear gas formulations containing 1% or less CN or CS), sternutators and irritant smoke, and nerve gases and incapacitating agents. (See @ 121.7.) PAGE 36 58 FR 39280, *39291 FOCUS *(b) Biological agents. *(c) Equipment for dissemination, detection, and identification of, and defense against, the articles in paragraphs (a) and (b) of this category. *(d) Nuclear radiation detection and measuring devices, manufactured to military specification. (e) Components, parts, accessories, attachments, and associated equipment specifically designed or modified for the articles in paragraphs (c) and (d) of this category. (f) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) related to the defense articles enumerated in paragraphs (a) through (e) of this category. (See @ 125. 4 of this subchapter for exemptions; see also @ 123.21 of this subchapter). Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated as SME. Category XV-Spacecraft Systems and Associated Equipment *(a) Spacecraft and associated hardware, including ground support equipment, specifically designed or modified for military use. (b)(1) [Reserved] (2) Communications satellites (excluding ground stations and their associate d equipment and technical data not enumerated elsewhere in @ 121.1 of this subchapter; for controls on such ground stations, see the Commerce Control List ) with any of the following characteristics: (i) Anti-jam capability. Antennas and/or antenna systems with ability to respond to incoming interference by adaptively reducing antenna gain in the direction of the interference. (ii) Antennas: (A). With aperture (overall dimension of the radiating portions of the antenna) greater than 30 feet; or (B). With sidelobes less than or equal to -35dB; or (C). Designed, modified, or configured to provide coverage area on the surface of the earth less than 200 nm in diameter, where "coverage area" is defined as that area on the surface of the earth that is illuminated by the mai n beam width of the antenna (which is the angular distance between half power points of the beam). (iii) Designed, modified or configured for intersatellite data relay links that do not involve a ground relay terminal ("cross-links"). (iv) Spaceborne baseband processing equipment that uses any technique other than frequency translation which can be changed several times a day on a PAGE 37 58 FR 39280, *39291 FOCUS channel by channel basis among previously assigned fixed frequencies. (v) Employing any of the cryptographic items controlled under Category XIII (b) of this subchapter. (vi) Employing radiation-hardened devices controlled elsewhere in @ 121.1 that are not "embedded in the satellite in such a way as to deny physical access. (Here "embedded" means that the device either cannot feasibly be remove d from the satellite or be used for other purposes.) (vii) Having propulsion systems which permit acceleration of the satellite on-orbit (i.e., after mission orbit injection) at rates greater than 0.1g. (viii) Having attitude control and determination systems designed to provide spacecraft pointing determination and control better than 0.02 degrees azimuth and elevation. (ix) Having orbit transfer engines ("kick-motors") which remain permanently with the spacecraft and are capable of being restarted after achievement of mission orbit and providing acceleration greater than 1g. (Orbit transfer engines which are not designed, built, and shipped as an integral part of the satellite are controlled under Category IV of this subchapter.) (c) Global Positioning System (GPS) receiving equipment specifically designed, modified or configured for military use; or GPS receiving equipment with any of the following characteristics: (1) Designed for encryption or decryption (e.g., Y-Code) of GPS precise positioning service (PPS) signals; (2) Designed for producing navigation results above 60,000 feet altitude and at 1,000 knots velocity or greater; (3) Specifically designed or modified for use with a null steering antenna o r including a null steering antenna designed to reduce or avoid jamming signals; (4) Designed or modified for use with unmanned air vehicle systems capable o f delivering at least a 500 kg payload to a range of at least 300 km. Note: GPS receivers designed or modified for use with military unmanned air vehicle systems with less capability are considered to be specifically designed , modified or configured for military use and therefore covered under this subparagraph. Any GPS equipment not meeting this definition is subject to the jurisdiction of the Department of Commerce (DOC). Manufacturers or exporters of equipment under DOC jurisdiction are advised that the U.S. Government does not assure the availability of the GPS P-Code for civil navigation. It is the policy of the Department of Defense (DOD) that GPS receivers using P-Code without clarification as to whether or not those receivers were designed or modified to use Y-Code will be presumed to be Y-Code capable and covered under this subparagraph. The DOD policy further requires that a notice be attached to all P-Code receivers presented for export. The notice must state the following: "ADVISORY NOTICE: This receiver uses the GPS P-Code signal, which by U.S. PAGE 38 58 FR 39280, *39291 FOCUS policy, may be switched off without notice." (d) Components, parts, accessories, attachments, and associated equipment (including ground support equipment) specifically designed, modified or configure for the articles in paragraphs (a) through (c) of this category, as well as for any satellites under the export licensing jurisdiction of the Department of Commerce, except as noted below. Explanatory Note This language is not intended to preclude a license application of a complet e satellite that is under the jurisdiction of the Department of Commerce from including in that license application any directly associated components, parts , accessories, attachments and associated equipment (including ground support equipment) unless such items are specifically identified for control in paragraph (a) or (b) of this category or any other category of @ 121.1 of this subchapter. It is understood that spares, replacement parts, ground support and test equipment, payload adapter/interface hardware, etc. are typically provided as part of a satellite launch campaign; however, such items are only exempt fro m USML licensing when their intended use is directly related to supporting the Commerce-licensed satellite launch campaign. Once the satellite has been successfully launched, it is understood that such items remaining unlaunched will be returned to the United States. (e) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (d) of this category. (Se e @ 125.4 of this subchapter for exceptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. In addition, detailed design, development, production or manufacturing data for all spacecraft systems and specifically designed or modified components thereof, regardless of which U.S. Government agency has jurisdiction for export of the hardware. (See @ 125.4 of this subchapter for exceptions.) This restriction does not include that level of technical data (including marketing data) necessary and reasonable for a purchaser to have assurance [*39292] that a U.S.-built item intended to operate in space has been designed, manufactured and tested in conformance with specified contract requirements (e.g., operational performance, reliability, lifetime, product quality, or delivery expectations) and data necessary to evaluate in-orbit anomalies and to operate and maintain associated ground equipment. Category XVI-Nuclear Weapons Design and Test Equipment *(a) Any article, material, equipment, or device which is specifically designed or modified for use in the design, development, or fabrication of nuclear weapons or nuclear explosive devices. (See @ 123.21 of this subchapter and Department of Commerce Export Regulations, 15 CFR part 778). *(b) Any article, material, equipment, or device which is specifically designed or modified for use in the devising, carrying out, or evaluating of nuclear weapons tests or any other nuclear explosions, except such items as are in normal commercial use for other purposes. PAGE 39 58 FR 39280, *39292 FOCUS (c) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (b) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated SME. Category XVII-Classified Articles, Technical Data and Defense Services Not Otherwise Enumerated *(a) All articles, technical data (as defined in @ 120.21 of this subchapter ) and defense services (as defined in @ 120.8 of this subchapter) relating theret o which are classified in the interests of national security and which are not otherwise enumerated in the U.S. Munitions List. Category XVIII-[Reserved] Category XIX-[Reserved] Category XX-Submersible Vessels, Oceanographic and Associated Equipment *(a) Submersible vessels, manned or unmanned, tethered or untethered, designed or modified for military purposes, or powered by nuclear propulsion plants. *(b) Swimmer delivery vehicles designed or modified for military purposes. (c) Equipment, components, parts, accessories, and attachments specifically designed or modified for any of the articles in paragraphs (a) and (b) of this category. (d) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) through (c) of this category. (Se e @ 125.4 of this subchapter for exemptions.) Technical data directly related to the manufacture or production of any defense articles enumerated elsewhere in this category that are designated as Significant Military Equipment (SME) shall itself be designated as SME. Category XXI-Miscellaneous Articles (a) Any article not specifically enumerated in the other categories of the U.S. Munitions List which has substantial military applicability and which has been specifically designed or modified for military purposes. The decision on whether any article may be included in this category shall be made by the Directo of the Office of Defense Trade Controls. (b) Technical data (as defined in @ 120.21 of this subchapter) and defense services (as defined in @ 120.8 of this subchapter) directly related to the defense articles enumerated in paragraphs (a) of this category. @ 121.2 -- Interpretations of the U.S. Munitions List and the Missile Technolog y Control Regime Annex. PAGE 40 58 FR 39280, *39292 FOCUS The following interpretations (listed alphabetically) explain and amplify th e terms used in @ 121.1. These interpretations have the same force as if they wer e a part of the U.S. Munitions List (USML) category to which they refer. In addition, all the items listed in @ 121.16 shall constitute all items on the United States Munitions List which are Missile Technology Control Regime Annex items in accordance with section 71(a) of the Arms Export Control Act. @ 121.3 -- Aircraft and related articles. In Category VIII, "aircraft" means aircraft designed, modified, or equipped for a military purpose, including aircraft described as "demilitarized." All aircraft bearing an original military designation are included in Category VIII . However, the following aircraft are not included so long as they have not been specifically equipped, re-equipped, or modified for military operations: (a) Cargo aircraft bearing "C" designations and numbered C-45 through C-118 inclusive, C-121 through C-125 inclusive, and C-131, using reciprocating engine s only. (b) Trainer aircraft bearing "T" designations and using reciprocating engine s or turboprop engines with less than 600 horsepower (s.h.p.) (c) Utility aircraft bearing "U" designations and using reciprocating engine s only. (d) All liaison aircraft bearing an "L" designation. (e) All observation aircraft bearing "O" designations and using reciprocatin g engines. @ 121.4 -- Amphibious vehicles. An amphibious vehicle in Category VII(f) is an automotive vehicle or chassis which embodies all-wheel drive, is equipped to meet special military requirements, and which has sealed electrical systems or adaptation features fo r deep water fording. @ 121.5 -- Apparatus and devices under Category IV(c). Category IV includes but is not limited to the following: Fuzes and components specifically designed, modified or configured for items listed in that category, bomb racks and shackles, bomb shackle release units, bomb ejectors, torpedo tubes, torpedo and guided missile boosters, guidance systems equipment and parts, launching racks and projectors, pistols (exploders), ignitors, fuze arming devices, intervalometers, thermal batteries, hardened missile launching facilities, guided missile launchers and specialized handling equipment, including transporters, cranes and lifts designed to handle articles in paragraphs (a) and (b) of this category for preparation and launch from fixe d and mobile sites. The equipment in this category includes robots, robot controllers and robot end-effectors specially designed or modified for military applications. @ 121.6 -- Cartridge and shell casings. PAGE 41 58 FR 39280, *39292 FOCUS Cartridge and shell casings are included in Category III unless, prior to export, they have been rendered useless beyond the possibility of restoration for use as a cartridge or shell casing by means of heating, flame treatment, mangling, crushing, cutting, or popping. @ 121.7 -- Chemical agents. A chemical agent in Category XIV(a) is a substance having military application which by its ordinary and direct chemical action produces a powerfu l physiological effect. The term "chemical agent" includes, but is not limited to , the following chemical compounds: (a) Lung irritants: (1) Diphenylcyanoarsine (DC). (2) Fluorine (but not fluorene). (3) Trichloronitro methane (chloropicrin PS). (b) Vesicants: (1) B-Chlorovinyldichloroarsine (Lewisite, L). (2) Bis(dichloroethyl)sulphide (Mustard Gas, HD or H). (3) Ethyldichloroarsine (ED). (4) Methyldichloroarsine (MD). (c) Lachrymators and tear gases: (1) A-Bromobenzyl cyanide (BBC). (2) Chloroacetophenone (CN). (3) Dibromodimethyl ether. (4) Dichlorodimethyl ether (ClCi). (5) Ethyldibromoarsine. (6) Phenylcarbylamine chloride. (7) Tear gas solutions (CNB and CNS). (8) Tear gas orthochlorobenzalmalononitrile (CS). (d) Sternutators and irritant smokes: (1) Diphenylamine chloroarsine (Adamsite, DM). [*39293] (2) Diphenylchloroarsine (BA). PAGE 42 58 FR 39280, *39293 FOCUS (3) Liquid pepper. (e) Nerve agents, gases and aerosols. These are toxic compounds which affect the nervous system, such as: (1) Dimethylaminoethoxycyanophosphine oxide (GA). (2) Methylisopropoxyfluorophosphine oxide (GB). (3) Methylpinacolyloxyfluoriphosphine oxide (GD). (f) Antiplant chemicals, such as: Butyl 2-chloro-4-fluorophenoxyacetate (LNF). @ 121.8 -- End-items, components, accessories, attachments parts, firmware, software and systems. (a) An end-item is an assembled article ready for its intended use. Only ammunition, fuel or another energy source is required to place it in an operating state. (b) A component is an item which is useful only when used in conjunction wit h an end-item. A major component includes any assembled element which forms a portion of an end-item without which the end-item is inoperable. (Example: Airframes, tail sections, transmissions, tank treads, hulls, etc.) A minor component includes any assembled element of a major component. (c) Accessories and attachments are associated equipment for any component, end-item or system, and which are not necessary for their operation, but which enhance their usefulness or effectiveness. (Examples: Military riflescopes, special paints, etc.) (d) A part is any single unassembled element of a major or a minor component , accessory, or attachment which is not normally subject to disassembly without the destruction or the impairment of design use. (Examples: Rivets, wire, bolts , etc.) (e) Firmware and any related unique support tools (such as computers, linkers, editors, test case generators, diagnostic checkers, library of functions and system test diagnostics) specifically designed for equipment or systems covered under any category of the U.S. Munitions List are considered as part of the end-item or component. Firmware includes but is not limited to circuits into which software has been programmed. (f) Software includes but is not limited to the system functional design, logic flow, algorithms, application programs, operating systems and support software for design, implementation, test, operation, diagnosis and repair. A person who intends to export software only should, unless it is specifically enumerated in @ 121.1 (e.g., XIII(b)), apply for a technical data license pursuant to part 125 of this subchapter. (g) A system is a combination of end-items, components, parts, accessories, attachments, firmware or software, specifically designed, modified or adapted t o operate together to perform a specialized military function. PAGE 43 58 FR 39280, *39293 FOCUS @ 121.9 -- Firearms. (a) Category I includes revolvers, pistols, rifles, carbines, fully automati c rifles, submachine guns, machine pistols and machine guns to caliber .50, inclusive. It includes combat shotguns. It excludes other shotguns with barrels 18 seconds or longer, BB, pellet, and muzzle loading (black powder) firearms. (b) A firearm is a weapon not over .50 caliber which is designed to expel a projectile by the action of an explosive or which may be readily converted to d o so. (c) A rifle is a shoulder firearm which can discharge a bullet through a rifled barrel 16 inches or longer. (d) A carbine is a lightweight shoulder firearm with a barrel under 16 inche s in length. (e) A pistol is a hand-operated firearm having a chamber integral with or permanently aligned with the bore. (f) A revolver is a hand-operated firearm with a revolving cylinder containing chambers for individual cartridges. (g) A submachine gun, "machine pistol" or "machine gun" is a firearm originally designed to fire, or capable of being fired, fully automatically by a single pull of the trigger. @ 121.10 -- Forgings, castings and machined bodies. Articles on the U.S. Munitions List include articles in a partially complete d state (such as forgings, castings, extrusions and machined bodies) which have reached a stage in manufacture where they are clearly identifiable as defense articles. If the end-item is an article on the U.S. Munitions List (including components, accessories, attachments and parts as defined in @ 121.8), then the particular forging, casting, extrusion, machined body, etc., is considered a defense article subject to the controls of this subchapter, except for such items as are in normal commercial use. @ 121.11 -- Military demolition blocks and blasting caps. Military demolition blocks and blasting caps referred to in Category IV(a) d o not include the following articles: (a) Electric squibs. (b) No. 6 and No. 8 blasting caps, including electric ones. (c) Delay electric blasting caps (including No. 6 and No. 8 millisecond ones). (d) Seismograph electric blasting caps (including SSS, Static-Master, Vibrocap SR, and SEISMO SR). PAGE 44 58 FR 39280, *39293 FOCUS (e) Oil well perforating devices. @ 121.12 -- Military explosives. (a) Military Explosives in Category V are military explosives or energetic materials consisting of high explosives, propellants or low explosives, pyrotechnics and high energy solid or liquid fuels, including aircraft fuels specially formulated for military purposes. Military explosives are solid, liquid or gaseous substances or mixtures of substances which, in their application as primary, booster or main charges in warheads, demolition and other military applications, are required to detonate. Military explosives, military propellants and military pyrotechnics in Category V include substances or mixtures containing any of the following: (1) Spherical aluminium powder of particle size 60 micrometres or less manufactured from material with an aluminum content of 99% or more; (2) Metal fuels in particle sizes less than 60 micrometres whether spherical , atomized, spheroidal, flaked or ground, consisting of 99% or more of any of the following: Zirconium, boron, magnesium and alloys of these; beryllium; fine iro n powder with average particle size of 3 micrometres or less produced by reductio n of iron oxide with hydrogen; (3) Any of the foregoing metals or alloys listed in (a) (1) and (2) of this section, whether or not encapsulated in aluminum, magnesium, zirconium or beryllium; (4) Perchlorates, chlorates and chromates composited with powdered metal or other high energy fuel components; (5) Nitroglycerin; (6) Trinitrophenylmenthylnitramine (TETRYL); (7) Trinitrotoluene (TNT); (8) Nitroguanidine (NQ); (9) With the exception of chlorinetrifluoride, compounds composed of fluorin e and one or more of the following: other halogens, oxygen, nitrogen; (10) Carboranes; decaborane; pentaborane and derivatives; (11) Cyclotetramethylenetetranitramine (HMX); octahydro-1, 3,5,7-tetranitro-1,3,5,7-tetrazine; 1,3,5,7-tetranitro- [*39294] 1,3,5,7-tetraza-cyclooctane; (octogen, octogene); (12) Hexanitrostilbene (HNS); (13) Diaminotrinitrobenzene (DATB); (14) Triaminotrinitrobenzene (TATB); PAGE 45 58 FR 39280, *39294 FOCUS (15) Triaminoguanidinenitrate (TAGN); (16) Titanium subhydride of stiochiometry TiH sub 0.65-1.68; (17) Dinitroglycoluril (DNGU, DINGU); tetranitroglycoluril TNGU, SORGUYL); (18) Tetranitrobenzotriazolobenzotriazole (TACOT); (19) Diaminohexanitrobiphenyl (DIPAM); (20) Picrylaminodinitropyridine (PYX); (21) 3-nitro-1,2,4-triazol-5-one (NTO or ONTA); (22) Hydrazine in concentrations of 70% or more; hydrazine nitrate; hydrazin e perchlorates; unsymmetrical dimethyl hydrazine; monomethyl hydrazine; symmetrical dimethyl hydrazine; (23) Ammonium perchlorate; (24) 2-(5-cyanotetrazolato) penta amminecobalt (III) perchlorate (CP); (25) cis-bis (5-nitrotetrazolato) penta amminecobalt (III) perchlorate (or BNCP); (26) 7-amino 4,6-dinitrobenzofurazane-1-oxide (ADNBF); amino dinitrobenzofuroxan; (27) 5,7-diamino-4,6-dinitrobenzofurazane-1-oxide, (CL-14 or diaminodinitrobenzofuroxan); (28) 2,4,6-trinitro-2,4,6-triaza-cyclo-hexanone (K-6 or keto-RDX); (29) 2,4,6,8-tetranitro-2,4,6,8-tetraaza-bicyclo (3,3,0)-octanone-3(tetranitrosemiglycoluril, K-55, or keto-bicyclic HMX); (30) 1,1,3-trinitroazetidine (TNAZ); (31) 1,4,5,8-tetranitro-1,4,5,8-tetraazadecalin (TNAD); (32) Hexanitrohexaazaisowurtzitane (CL-20 or HNIW; and clathrates of CL-20); (33) Polynitrocubane with more than four nitro groups; (34) Ammonium dinitramide (ADN or SR-12); (35) Cyclotrimethylentrinitramine (RDX); cyclonite; T4; hexahydro-1,3,5-trinitro-1,3,5-triazine; 1,3,5-trinitro-1,3,5-triaza-cyclohexane; hexogen, hexogene; (36) Hydroxylammonium nitrate (HAN); hydroxylammonium perchlorate (HAP); (37) Pentaerythritol Tetranitrate (PETN); PAGE 46 58 FR 39280, *39294 FOCUS (38) Hydroxy terminated Polybutadiene (HTPB) with a hydroxyl functionality o f 2.28, a hydroxyl value of less than 0.77 meq/g, and a viscosity at 30 degrees C of less than 47 poise; (b) "Additives" include the following: (1) Glycidylazide Polymer (GAP) and its derivatives; (2) Polycyanodifluoroaminoethyleneoxide (PCDE); (3) Butanetrioltrinitrate (BTTN); (4) Bis-2-fluoro-2,2-dinitroethylformal (FEFO); (5) Catocene, N-butyl-ferrocene and other ferrocene derivatives; (6) Bis(2, 2-dinitropropyl) formal and acetal; (7) Energetic monomers, plasticisers and polymers containing nitro, azido, nitrate, nitraza or difluroamino groups; (8) 1,2,3-Tris [1,2-bis(difluoroamino)ethoxy] propane; Tris vinoxy propane adduct, (TVOPA); (9) Bisazidomethyloxetane (BAMO) and its polymers; (10) Nitratomethylmethyloxetane (NMMO) Azidomethylmethyloxetane (AMMO); (11) Tetraethylenepentamine- acrylonitrile (TEPAN); cyanoethylated polyamine and its salts; (12) Tetraethylenepentamineacryloni-trileglycidol (TEPANOL); cyanoethylated polyamine adducted with glycidol and its salts; (13) Polyfunctional aziridine amides with isophthalic, trimesic (BITA or butylene imine trimesamide isoyanuric), or trimethyladipic backbone structures and 2-methyl or 2-ethyl substitutions on the aziridine ring; (14) Basic copper salicylate; lead salicylate; (15) Lead beta resorcylate; (16) Lead stannate, lead maleate, lead citrate; (17) Tris-1-(2-methyl)aziridinyl phosphine oxide (MAPO) and its derivatives; (18) Organo-metallic coupling agents, specifically: (i) Neopentyl (diallyl) oxy, tri [dioctyl] phosphato titanate or titanium IV , 2,2[bis 2-propenolatomethyl, butanolato or tris [dioctyl] phosphato-O], or LICA 12; (ii) Titanium IV, [(2-propenolato-1)methyl, N-propanolatomethyl] butanolato-1; or tris(dioctyl)pyrophosphato, or KR3538; PAGE 47 58 FR 39280, *39294 FOCUS (iii) Titanium IV, [(2-propenolato-1)methyl, N-propanolatomethyl] butanolato-1; or tris(dioyctyl) phosphate; (19) FPF-1 (poly-[2,2,3,3,4,4-hexafluoro pentane-1,5-diolformal]); (20) FPF-3 (poly-[2,4,4,5,5,6,6-heptafluoro-2- trifluoromethyl-3-oxaheptane-1,7-diolformal]); (21) Polyglycidylnitrate (PGN); (22) Lead-copper chelates of beta-resorcylate and/or salicylates; (23) Triphenyl bismuth (TPB); (24) bis-2-hydroxyethylglycolamide (BHEGA); (25) Superfine iron oxide with a specific surface area greater than 250 m su p 2 /g and an average particle size of 0.0003 micrometres or less; (c) "Precursors" include the following: (1) 1,2,4-trihydroxybutane (1,2,4-butanetriol); (2) 1,3,5-trichlorobenzene; (3) Bischloromethyloxetane (BCMO); (4) Low (less than 10,000) molecular weight, alcohol-functionalised, poly(ephichlorohydrin); poly(ephichlorhydrindiol); diol and triol; (5) Propyleneimide, 2-methylaziridine; (6) 1,3,5,7,-tetraacetyl-1,3,5,7-tetraaza-cyclooctane (TAT); (7) Dinitroazetidine-t-butyl salt; (8) Hexabenzylhexaazaisowurtzitane (HBIW); (9) Tetraacetyldi- benzyl- hexaazaiso- wurtzitane (TAIW); (10) 1,4,5,8-tetraazadecaline. (d) Stabilisers include the following; (1) N-Methyl-p-nitroaniline; (2) Protech. (e) Any substance or mixture meeting the following performance requirements: (1) Any explosive with a detonation velocity greater than 8,700 m/s or a detonation pressure greater than 340 kilobars; PAGE 48 58 FR 39280, *39294 FOCUS (2) Other organic high explosives yielding detonation pressures of 250 kilobars or greater that will remain stable at temperatures of 523 K (250 degrees C) or higher for periods of 5 minutes or longer; (3) Any other UN Class 1.1 solid propellant with a theoretical specific impulse (under standard conditions) greater than 250 seconds for non-metallized , or greater than 270 seconds for aluminized compositions; (4) Any UN Class 1.3 solid propellant with a theoretical specific impulse greater than 230 seconds for non-halogenized, 250 seconds for non-metallized an d 266 seconds for metallized compositions; (5) Any other explosive, propellant or pyrotechnic that can sustain a steady-state burning rate greater than 38mm (1.5 in) per second under standard conditions of 68.9 bar (1,000 PSI) pressure and 294K (21 degrees C); (6) Any other gun propellants having a force constant greater than 1,200 kJ/kg; (7) Elastomer modified cast double based propellants (EMCDB) with extensibility at maximum stress greater than 5% at 233 K or (-40 degrees C). (f) Liquid oxidizers, as follows: (1) Enriched nitric acid (inhibited red fuming nitric acid (IRFNA)); [*39295] (2) Oxyfluoride. @ 121.13 Military fuel thickeners. Military fuel thickeners in Category V include compounds (e.g., octal) or mixtures of such compounds (e.g., napalm) specifically formulated for the purpose of producing materials which, when added to petroleum products, provide a gel-type incendiary material for use in bombs, projectiles, flame throwers, o r other defense articles. @ 121.14 -- Propellants. Propellants in Category V include, but are not limited to, the following: (a) Propellant powders, including smokeless shotgun powder. (b) Hydrazine (including Monomethyl hydrazine and symmetrical dimethyl hydrazine, but excluding hydrazine hydrate). (c) Unsymmetrical dimethyl hydrazine. (d) Hydrogen peroxide of over 85 percent concentration. (e) Nitroguanidine or picrite. (f) Nitrocellulose with nitrogen content of over 12.20 percent. PAGE 49 58 FR 39280, *39295 FOCUS (g) Nitrogen tetroxide (nitrogen dioxide, dinitrogen tetroxide). (h) Other solid propellant compositions, including but not limited to, the following: (1) Single base (nitrocellulose). (2) Double base (nitrocellulose, nitroglycerin). (3) Triple base (nitrocellulose, nitroglycerin, nitroguanidine). (4) Composite of nitroglycerin, ammonium perchlorate, potassium perchlorate, nitronium perchlorate, guanidine (guanidinium) perchlorate, nitrogen tetroxide, ammonium nitrite or nitrocellulose with plastics, metal fuels, or rubbers added ; and compounds composed only of fluorine and halogens, oxygen, or nitrogen. (5) Special purpose high energy solid military fuels with a chemical base. (i) Other liquid propellant compositions, including but not limited to, the following: (1) Monopropellants (hydrazine, hydrazine nitrate, and water). (2) Bipropellants (hydrazine, fuming nitric acid HNO(3)). (3) Special purpose chemical base high energy liquid military fuels and oxidizers. @ 121.15 -- Vessels of war and special naval equipment. Vessels of war means vessels, waterborne or submersible, designed, modified, or equipped for military purposes, including vessels described as developmental , "demilitarized" or decommissioned. Vessels of war in Category VI, whether developmental, "demilitarized" and/or decommissioned or not, include, but are not limited to, the following: (a) Combatant vessels. (1) Warships (including nuclear-powered versions): (i) Aircraft carriers. (ii) Battleships. (iii) Cruisers. (iv) Destroyers. (v) Frigates. (vi) Submarines. (2) Other Combatants. PAGE 50 58 FR 39280, *39295 FOCUS (i) Patrol Combatants (e.g., including but not limited to PHM). (ii) Amphibious Aircraft/Landing Craft Carriers. (iii) Amphibious Materiel/Landing Craft Carriers. (iv) Amphibious Command Ships. (v) Mine Warfare Ships. (vi) Coast Guard Cutters (i.e. WHEC's and WMEC's). (b) Auxiliaries. (1) Combat Logistics Support. (i) Underway Replenishment Ships. (ii) Surface Vessel and Submarine Tender/Repair Ships. (2) Support Ships. (i) Submarine Rescue Ships. (ii) Other Auxiliaries (e.g., including but not limited to: AGDS, AGF, AGM, AGOR, AGOS, AGS, AH, AP, ARC, ARL, AVB, AVM, AVT). (c) Combatant Craft. (1) Patrol Craft. (i) Coastal Patrol Combatants. (ii) River, Roadstead Craft (including swimmer delivery craft). (iii) Coast Guard Patrol Craft. (2) Amphibious Warfare Craft. (i) Landing Craft (e.g., including but not limited to: LCAC, LCM, LCPL, LCU, LWT, SLWT). (ii) Special Warfare Craft (e.g., including but not limited to: LSSC, MSSC, SDV, SWCL, SWCM). (3) Mine Warfare Craft. (i) Mine Countermeasures Craft (e.g., including but not limited to: MCT, MSB). (d) Support and Service Vessels. (1) Miscellaneous (e.g., including but not limited to: APL, DSRV, DSV, IX, WIX, NR, YFRT, YHLC, YP, YR, YRB, YRDH, YRDM, YRR, YSD). PAGE 51 58 FR 39280, *39295 FOCUS @ 121.16 -- Missile Technology Control Regime Annex. Some of the items on the Missile Technology Control Regime Annex are controlled by both the Department of Commerce on the Commodity Control List and by the Department of State on the United States Munitions List. To the extent a n article is on the United States Munitions List, a reference appears in parentheses listing the U.S. Munitions List category in which it appears. The following items constitute all items on the Missile Technology Control Regime Annex which are covered by the U.S. Munitions List: Item 1-Category I Complete rocket systems (including ballistic missile systems, space launch vehicles, and sounding rockets (see @ 121.1, Cat. IV(a) and (b)) and unmanned air vehicle systems (including cruise missile systems see @ 121.1, Cat. VIII (a), target drones and reconnaisance drones (see @ 121.1, Cat. VIII (a)) capabl e of delivering at least a 500 kg payload to a range of at least 300 km. Item 2-Cateogry I Complete subsystems usable in the systems in Item 1 as follows: (a) Individual rocket stages (see @ 121.1, Cat. IV(h)); (b) Reentry vehicles (see @ 121.1, Cat. IV(g)), and equipment designed or modified therefor, as follows, except as provided in Note (1) below for those designed for non-weapon payloads; (1) Heat shields and components thereof fabricated of ceramic or ablative materials (see @ 121.1, Cat. IV(f)); (2) Heat sinks and components thereof fabricated of light-weight, high heat capacity materials; (3) Electronic equipment specially designed for reentry vehicles (see @ 121.1, Cat. XI(a)(7)); (c) Solid or liquid propellant rocket engines, having a total impulse capacity of 1.1 x 10 N-sec (2.5 x 10 lb-sec) or greater (see @ 121.1, Cat. IV, (h)). (d) "Guidance sets" capable of achieving system accuracy of 3.33 percent or less of the range (e.g., a CEP of 1 j,. or less at a range of 300 km), except a s provided in Note (1) below for those designed for missiles with a range under 300 km or manned aircraft (see @ 121.1, Cat. XII(d)); (e) Thrust vector control sub-systems, except as provided in Note (1) below for those designed for rocket systems that do not exceed the range/payload capability of Item 1 (see @ 121.1, Cat. IV); (f) Warhead safing, arming, fuzing, and firing mechanisms, except as provide d in Note (1) below for those designed for systems other than those in Item 1 (se e @ 121.1, Cat. IV(h)). PAGE 52 58 FR 39280, *39295 FOCUS Notes to Item 2 (1) The exceptions in (b), (d), (e), and (f) above may be treated as Categor y II if the subsystem is exported subject to end use statements and quantity limits appropriate for the excepted end use stated above. (2) CEP (circle of equal probability) is a measure of accuracy, and defined as the radius of the circle centered at the target, at a specific range, in which 50 percent of the payloads impact. (3) A "guidance set" integrates the process of measuring and computing a vehicle's position and velocity (i.e. navigation) with that of computing and sending commands to the vehicle's flight control systems to correct the trajectory. [*39296] (4) Examples of methods of achieving thrust vector control which are covered by (e) include: (i) Flexible nozzle; (ii) Fluid or secondary gas injection; (iii) Movable engine or nozzle; (iv) Deflection of exhaust gas stream (jet vanes or probes); or (v) Use of thrust tabs. Item 3-Category II Propulsion components and equipment usable in the systems in Item 1, as follows: (a) Lightweight turbojet and turbofan engines (including) turbocompound engines) that are small and fuel efficient (see @ 121.1, both Cat. IV(h) and VIII(b)); (b) Ramjet/Scramjet/pulse jet/combined cycle engines, including devices to regulate combustion, and specially designed components therefor (see @ 121.1, both Cat. IV(h) and Cat. VIII(b)); (c) Rocket motor cases, "interior lining", "insulation" and nozzles therefor (see @ 121.1, Cat. IV(h) and Cat. V(c)); (d) Staging mechanisms, separation mechanisms, and interstages therefor (see @ 121.1, Cat. IV(c) and (h)); (e) Liquid and slurry propellant (including oxidizers) control systems, and specially designed components therefor, designed or modified to operate in vibration environments of more than 100 g RMS between 20 Hz and,000 Hz (see @ 121.1, Cat. IV(c) and (h)); PAGE 53 58 FR 39280, *39296 FOCUS (f) Hybrid rocket motors and specially designed components therefor (see @ 121.1, Cat. IV(h)). Notes to Item 3 (1) Item 3(a) engines may be exported as part of a manned aircraft or in quantities appropriate for replacement parts for manned aircraft. (2) In Item 3(C), "interior lining" suited for the bond interface between th e solid propellant and the case or insulating liner is usually a liquid polymer based dispersion of refractory or insulating materials, e.g., carbon filled HTP B or other polymer with added curing agents to be sprayed or screeded over a case interior (see @ 121.1, Cat. V(c)). (3) In Item 3(c), "insulation" intended to be applied to the components of a rocket motor, i.e., the case, nozzle inlets, case closures, includes cured or semi-cured compounded rubber sheet stock containing an insulating or refractory material. It may also be incorporated as stress relief boots or flaps. (4) The only servo valves and pumps covered in (e) above, are the following: (i) Servo valves designed for flow rates of 24 liters per minute or greater, at an absolute pressure of 7,000 kPa (1,000 psi) or greater, that have an actuator response time of less than 100 msec; (ii) Pumps, for liquid propellants, with shaft speeds equal to or greater than 8,000 RPM or with discharge pressures equal to or greater than 7,000 kPa (1,000 psi). (5) Item 3(e) systems and components may be exports as part of a satellite. Item 4-Category II Propellants and constituent chemicals for propellants as follows: (see @ 121.1, Cat. V(c) and @ 121.12 and @ 121.14). (a) Propulsive substances: (1) Hydrazine with a concentration of more than 70 percent and its derivatives including monomethylhydrazine (MMH) (see @ 121.12(a)(22)); (2) Unsymmetric dimethylhydrazine (UDHM) (see @ 121.12(a)(22)); (3) Ammonium perchlorate (see @ 121.12(a)(23)); (4) Spherical aluminum powder with particle of uniform diameter of less than 500 x 10-m (500 micrometer) and an aluminum content of 97 percent or greater (see @ 121.12(a)(1)); (5) Metal fuels in particle sizes less than 500 x 10-m (500 Microns), whethe r spherical, atomized, spheroidal, flaked or ground, consisting of 97 percent or more of any of the following: zirconium, beryllium, boron, magnesium, zinc, and alloys of these (see @ 121.12(a)(2)); PAGE 54 58 FR 39280, *39296