[Federal Register Volume 61, Number 17 (Thursday, January 25, 1996)]
[Rules and Regulations]
[Pages 2099-2111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-293]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Parts 770, 771, 772, 773, 774, 775, 776, 785, 786, 787 and
799
[Docket No. 960103001-6001-01]
RIN 0694-AB36
Revisions to the Export Administration Regulations: Reform of
Computer Export Controls; Establishment of General License G-CTP
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Interim rule.
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SUMMARY: The Bureau of Export Administration (BXA) is amending the
Export Administration Regulations (EAR), to implement the President's
October 6, 1995, announcement on major reform of computer export
controls.
The President announced a liberalization of export controls on all
computers to countries in North America, most of Western Europe, and
parts of Asia. For certain other countries, including many in Latin
America and Central and Eastern Europe, this rule also liberalizes
export controls on computers. For the former Soviet Union, China and
certain other countries, U.S. export controls will focus on computers
intended for military and proliferation end-uses or users, and ease
controls on exports of computers to civilian customers. Finally, there
will be no change in current policy for computer shipments to terrorist
countries, with the exception of the addition of Sudan to ECCNs 4A94F,
4D94F, 4E94F, and Computer Tier 4 (a grouping of terrorist countries,
for the purpose of computer controls).
This decision will streamline validated license requirements for
U.S. computer manufacturers of computers that are, or will be in the
next two years, widely available in the international market place.
DATES: Effective Date: This rule is effective January 22, 1996.
Comment Date: Comments must be received by February 26, 1996.
ADDRESSES: Written comments (six copies) should be sent to Sharron
Cook, Office of Exporter Services, Bureau of Export Administration,
Department of Commerce, P.O. Box 273, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: For general information contact
Sharron Cook, Regulatory Policy Division, Bureau of Export
Administration, Telephone: (202) 482-2440.
For technical information contact Joseph Young, Strategic Trade
Division, Bureau of Export Administration, Telephone: (202) 482-4197.
SUPPLEMENTARY INFORMATION:
Background
When controls were last revised in 1993, the Administration
recognized that computer technology would continue to change rapidly--
and that it would need to review control levels within 18 to 24 months.
Accordingly, for the past several months, the Administration has
conducted a review of computer export controls that took into account
(1) the rapid advance of computing technology since 1993, (2) our
security and nonproliferation interests, and (3) the need for a policy
that would remain effective over the next 18 to 24 months.
This review found that enormous advances in the power and
capabilities of computing systems coming into widespread commercial use
have occurred and will continue to occur over the next two years. The
commercial computer market is being transformed by the emergence of
workstations containing multiple high-speed microprocessors, the ready
availability of high-speed communications links, and the continuing
rapid progress in software to permit difficult problems to run in
parallel and on networks.
Based on these developments, the Administration has determined that
computers capable of up to 7,000 million theoretical operations per
second (MTOPS) will become widely available in open international
markets within the next two years. The Administration has also
determined that computers with performance capabilities at and above
10,000 MTOPS have a significant number of strategic applications.
The new computer export controls found in this rule are to
implement the following goals, as stated by the President:
To permit the government to calibrate control levels and
licensing conditions depending upon the national security or
proliferation risk posed by exports to a specific destination;
To enhance U.S. national security and preserve the U.S. computer
industrial base by ensuring controls on computer exports are
effective and do not unnecessarily impede legitimate computer
exports; and
To permit the government to track global sales, thereby
illuminating how high performance computing may be used to pursue
critical military applications.
In this interim rule, the term ``supercomputer'' and the separate
supercomputer section in Sec. 776.11 have been removed. The majority of
the new computer controls can now be found in Sec. 776.10 that
generally pertains to computers. Because the term supercomputer was
removed from the EAR, all such references have been removed.
Within General License GCG, Sec. 771.14, the supercomputer
restriction is removed, with the exception that, ``no computers with a
CTP greater than 10,000 MTOPS may be exported to Argentina, Hong Kong,
South Korea, Singapore, and Taiwan without a validated license.'' This
is consistent with the President's announcement of October 6, 1995,
which provides a ceiling for the CTP level for which general licenses
can be used for these countries, except Taiwan and Hong Kong. Hong Kong
and Taiwan have a CTP limitation for computers of 10,000 MTOPS and are
in Computer Tier 2, established by this rule.
In this rule, the supercomputer restriction is also removed from
General Licenses G-TEMP and SAFEGUARDS. All computers are now eligible
for temporary export under the provisions of General License G-TEMP.
Also, all computers are now eligible for export to the International
Atomic Energy Agency (IAEA) under the provisions of General License
SAFEGUARDS.
A new General License G-CTP is established by this rule under
Sec. 771.28. This general license authorizes the export of computers
and specially
[[Page 2100]]
designed components therefor, exported separately or as part of a
system, and related equipment therefor when exported with these
computers as part of a system. These items will be eligible for export
to Computer Tier 1, 2 and 3 countries, for consumption therein. CTP
restrictions will correspond to the different Computer Tiers under the
provisions of Sec. 771.28.
Other areas significantly revised are those dealing with support
documentation for computer export and reexport applications, and
amendment requests. Currently, exporters must submit certain supporting
documents to BXA. This rule authorizes exporters of computers of
unlimited CTP to retain the required support documentation, i.e., BXA-
629P (Statement by Ultimate Consignee and Purchaser), International
Import Certificate (IC), People's Republic of China End-User
Certificate, Indian IC, Bulgarian IC, Czech IC, Hungarian IC, Polish
IC, Romanian IC, or Slovak IC, when submitting an application for
export, reexport or amendment.
Another area of liberalization is Special Licenses. Supplement No.
1 to part 773 (Commodities Excluded from the Special License
Procedures) has been revised to make all computers eligible for export
under special licenses. Exporters may now submit requests for computers
of unlimited CTP to be considered for special licenses.
This rule also makes changes to permissive reexport authority
(Sec. 774.2). Computers of unlimited CTP are eligible for permissive
reexport to and among the former COCOM participating and cooperating
countries, with the exception of Hong Kong and South Korea. Hong Kong
and South Korea will be limited to a CTP of 10,000 MTOPS, because these
countries fall within Computer Tier 2.
Section 776.10, ``Electronic Computers and Related Equipment'', has
been revised by adding paragraphs to implement the new computer reform.
The newly added paragraphs provide safeguard conditions, list
recordkeeping requirements, indicate general license availability, and
establish four Computer Country Tiers with corresponding license
requirements and policy.
Each country of the world is included in one of the Computer Tiers,
including those countries not specifically specified in the President's
announcement of October 6, 1995. Computer Tier 1 consists of Western
Europe, Turkey, Japan, Canada, Mexico, Australia, and New Zealand.
Persons may export computers of unlimited CTP and specially designed
components therefor, exported separately or as part of a system, and
related equipment therefor when exported with these computers as part
of a system to these countries using General License G-DEST or G-CTP
(depending on the CTP of the computer). The rule provides for
permissive reexports to and among these countries under
Sec. 774.2(a)(1).
Examples of the countries that can be found in Computer Tier 2 are
all the countries within Country Group T (except Mexico), South Korea,
ASEAN countries, Hungary, Poland, the Czech Republic, the Slovak
Republic, Slovenia, and South Africa. A complete listing of all the
countries included in Computer Tier 2 can be found in this rule under
Sec. 776.10. For these countries, exports of computers with a CTP less
than or equal to 10,000 MTOPS and specially designed components
therefor, exported separately or as part of a system, and related
equipment therefor when exported with these computers as part of a
system are authorized under General License G-DEST or G-CTP (depending
on the CTP of the computer). Validated licenses are required for
computers with a CTP greater than 10,000 MTOPS.
Examples of countries that are in Computer Tier 3 are India, China,
Vietnam, Pakistan, and countries of the Middle East, Maghreb, the
former Soviet Union, and the balance of Eastern Europe, i.e., those
Eastern European countries not included in Computer Tier 2. For a list
of countries that fall into Computer Tier 3, see Sec. 776.10. Exports
to Computer Tier 3 countries are authorized under General License G-
DEST for computers less than or equal to 2,000 MTOPS and specially
designed components therefor, exported separately or as part of a
system, and related equipment therefor when exported with these
computers as part of a system. Exports to permitted end-users and end-
uses located in countries in Computer Tier 3 are authorized under
General License G-CTP for computers greater than 2,000 MTOPS but less
than or equal to 7,000 MTOPS and specially designed components
therefor, exported separately or as part of a system, and related
equipment therefor when exported with these computers as part of a
system. General License G-CTP is not authorized for exports and
reexports to Computer Tier 3 for military end-users and end-uses and
nuclear, chemical, biological, or missile end-users and end-uses
defined in part 778. A validated license is required for all consignees
for computers with a CTP greater than 7,000 MTOPS.
As provided in the President's announcement, the U.S. will
``continue to deny computer technology to terrorist countries around
the world''. The countries identified by the Secretary of State as
terrorist supporting are included in Computer Tier 4. They include
Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria. Different
licensing requirements apply to each country in this Computer Country
Tier.
The President's announcement included a decision to continue to
deny computer technology to terrorist countries. This rule adds Sudan
to the list of countries requiring a validated license under ECCN
4A94F, 4D94F, and 4E94F. Another rule will be published in the near
future that will completely revise the Export Administration
Regulations pertaining to Sudan.
Safeguard conditions may be applied at the discretion of the U.S.
Government. A list of safeguard conditions that may appear on validated
licenses are listed in Sec. 776.10(h).
Exporters should be aware of the special recordkeeping requirements
for computers. This rule requires exporters to keep records relating to
each export of a computer with a CTP equal to or greater than 2,000
MTOPS. These records must include the date of shipment, name and
address of the end-user and each intermediate consignee, CTP of each
computer in shipment, volume of computers in shipment, end-use, and
dollar value of shipment.
General Licenses GCT and GFW have been revised to conform with the
revisions of this rule. However, you are informed that the CTP
eligibility levels of General License G-DEST and the new General
License G-CTP far exceed the historic CTP eligibility levels of General
Licenses GCT and GFW and that it may be to your benefit to use G-DEST
or G-CTP instead of GCT and GFW. The authorities of General Licenses
GCT and G-CTP overlap for computers but not for all transactions
involving peripherals exported separately from computer systems. At the
urging of some exporters, this rule maintains General License GCT
because it will remain useful to authorize the export of certain
peripherals when not exported with a computer system eligible for
General License G-CTP.
Specially designed components, exported separately or as part of a
system, and related equipment therefore when exported with computer
systems meeting the eligibility requirements for a general license will
also be eligible under the same general license as the computer.
General licenses are not available for exports of items the exporter
knows will be used to enhance the CTP of a computer beyond the
[[Page 2101]]
technical parameters of the general license.
When evaluating your computer to determine general license
eligibility, use the CTP parameter to the exclusion of other technical
parameters for computers classified under ECCN 4A03A; with the
exception of parameters specified as controlled for Missile Technology
(MT) concerns and 4A03A.e (Equipment performing analog-to-digital or
digital-to-analog conversions exceeding the limits in ECCN 3A01A.a.5).
For example, if you have a graphic workstation with a CTP of 5,000
MTOPS, that includes a graphic accelerator with a 3D vector rate of 10
million vectors/second, destined for a civil end-user and end-use in
India--you may export the graphic workstation to India using General
License G-CTP.
This rule imposes an immediate recordkeeping requirement and alerts
exporters to a future reporting requirement for computer exports. These
requirements are included in part in light of the information sharing
commitments the United States expects to announce in the near future in
connection with the new multilateral regime that will replace the
Coordinating Committee on Export Controls (COCOM) to control the export
of arms and sensitive dual-use goods and technologies. The
recordkeeping requirement takes effect immediately upon filing of the
rule. It is expected that exports of computers above 2,000 MTOPS to
certain destinations will become subject to the reporting requirement
once the initial elements of the new multilateral regime are adopted.
The date on which the reporting requirement is triggered, and the date
on which the first report will be due, will be included in a future
Federal Register notice.
This rule liberalizes the parts and components rule found in
Sec. 776.12 of the EAR. It makes the de minimis exclusions available to
computers that were previously supercomputers.
All the changes to the Commerce Control List (CCL) pertain to
Category 4. This rule revises Foreign Policy controls for computers.
The computer-related FP controls of this rule apply to all destinations
except Japan and to items that require a license depending upon the
destinations specified in the Computer Country Tiers. For example,
Computer Tier 1 does not require a validated license for exports of
computers, so there are no computer-related FP controls for exports of
computers to these countries.
Saving Clause
Shipments of items removed from general license authorizations as a
result of this regulatory action that were on dock for loading, on
lighter, laden aboard an exporting carrier, or en route aboard carrier
to a port of export pursuant to actual orders for export before
February 8, 1996 may be exported under the previous general license
provisions up to and including February 22, 1996. Any such items not
actually exported before midnight February 22, 1996, require a
validated export license in accordance with this regulation.
Although the Export Administration Act (EAA) expired on August 20,
1994, the President invoked the International Emergency Economic Powers
Act and continued in effect, to the extent permitted by law, the
provisions of the EAA and the EAR in Executive Order 12924 of August
19, 1994, as extended by the President's notice of August 15, 1995 (60
Fed. Reg. 42767).
Rulemaking Requirements
1. This interim rule has been determined to be significant for
purposes of Executive Order 12866.
2. This rule involves collections of information subject to the
Paperwork Reduction Act of 1995. These collections have been approved
by the Office of Management and Budget (OMB) under control numbers
0694-0002, 0694-0005, 0694-0006, 0694-0010, 0694-0013, 0694-0015, 0694-
0017, 0694-0021, 0694-0029, and 0694-0064. The rule also contains
information requirements that have been approved by OMB under 0694-
0073. The usage and computer authorization logs are estimated to
average 5 minutes each, monthly reports are estimated at 30 minutes,
and recordkeeping requirements on export transactions are estimated at
2 minutes. Each of the reporting burden estimates include the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding these estimates to
the Office of Information and Regulatory Affairs, Office of Management
and Budget, Washington, DC 20503 and to the Bureau of Export
Administration, Director of Administration, Room 3889, Department of
Commerce, Washington, DC 20230. Notwithstanding any other provision of
law, no person is required to respond to nor shall a person be subject
to a penalty for failure to comply with a collection of information
subject to the requirements of the Paperwork Reduction Act unless that
collection of information displays a currently valid OMB Control
Number.
3. This rule does not contain policies with Federalism implications
sufficient to warrant preparation of a Federalism assessment under
Executive Order 12612.
4. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by section
553 of the Administrative Procedure Act (5 U.S.C. 553) or by any other
law, under section 3(a) of the Regulatory Flexibility Act (5 U.S.C.
603(a) and 604(a)) no initial or final Regulatory Flexibility Analysis
has to be or will be prepared.
5. The provisions of the Administrative Procedure Act, (5 U.S.C.
553), requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military or foreign affairs function
of the United States. No other law requires that a notice of proposed
rulemaking and an opportunity for public comment be given for this
rule.
However, because of the importance of the issues raised by these
regulations, this rule is issued in interim form and comments will be
considered in the development of final regulations.
Accordingly, the Department encourages interested persons who wish
to comment to do so at the earliest possible time to permit the fullest
consideration of their views.
The period for submission of comments will close February 26, 1996.
The Department will consider all comments received before the close of
the comment period in developing final regulations. Comments received
after the end of the comment period will be considered if possible, but
their consideration cannot be assured. The Department will not accept
public comments accompanied by a request that a part or all of the
material be treated confidentially because of its business proprietary
nature or for any other reason. The Department will return such
comments and materials to the person submitting the comments and will
not consider them in the development of final regulations. All public
comments on these regulations will be a matter of public record and
will be available for public inspection and copying. In the interest of
accuracy and completeness, the Department requires comments in written
form.
Oral comments must be followed by written memoranda, which will
also be a matter of public record and will be available for public
review and copying.
[[Page 2102]]
Communications from agencies of the United States Government or foreign
governments will not be made available for public inspection.
The public record concerning these regulations will be maintained
in the Bureau of Export Administration Freedom of Information Records
Inspection Facility, Room 4525, Department of Commerce, 14th Street and
Pennsylvania Avenue, NW., Washington, DC 20230. Records in this
facility, including written public comments and memoranda summarizing
the substance of oral communications, may be inspected and copied in
accordance with regulations published in Part 4 of Title 15 of the Code
of Federal Regulations. Information about the inspection and copying of
records at the facility may be obtained from Theodore Zois, Bureau of
Export Administration Freedom of Information Officer, at the above
address or by calling (202) 482-1525.
List of Subjects
15 CFR Part 770
Administrative practice and procedure, Exports.
15 CFR Parts 771, 772, 773, 774, 775, 776, 786 and 799
Exports, Reporting and recordkeeping requirements.
15 CFR Part 785
Communist countries, Exports.
15 CFR Part 787
Boycotts, Exports, Law enforcement, Penalties, Reporting and
recordkeeping requirements.
Accordingly, parts 770, 771, 772, 773, 774, 775, 776, 785, 786, 787
and 799 of the Export Administration Regulations (15 CFR parts 730-799)
are amended as follows:
1. The authority citation for 15 CFR parts 770, 771, 774, 786, 787
and 799 is revised to read as follows:
Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et
seq.), as amended; Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et
seq.); Pub. L. 95-242, 92 Stat. 120 (22 U.S.C. 3201 et seq. and 42
U.S.C. 2139a); Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et
seq.), as amended [(extended by Pub. L. 103-10, 107 Stat. 40 and by
Pub. L. 103-277, 108 Stat. 1407)]; Pub. L. 102-484, 106 Stat. 2575
(22 U.S.C. 6004); E.O. 12002 of July 7, 1977 (42 FR 35623, July 7,
1977), as amended; E.O. 12058 of May 11, 1978 (43 FR 20947, May 16,
1978); E.O. 12214 of May 2, 1980 (45 FR 29783, May 6, 1980); E.O.
12735 of November 16, 1990 (55 FR 48587, November 20, 1990), as
continued by Notice of November 12, 1993 (58 FR 60361, November 15,
1993); E.O. 12851 of June 11, 1993 (58 FR 33181, June 15, 1993);
E.O. 12867 of September 30, 1993 (58 FR 51747, October 4, 1993);
E.O. 12930 of September 29, 1994 (59 FR 50475, October 3, 1994);
E.O. 12924 of August 19, 1994 (59 FR 43437 of August 23, 1994); E.O.
12930 (59 FR 50475 of October 3, 1994); and Notice of August 15,
1995 (60 FR 42767).
2. The authority citation for 15 CFR parts 773, 775, 778, and 785
continues to read as follows:
Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et
seq.), as amended; Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et
seq.); Pub. L. 95-242, 92 Stat. 120 (22 U.S.C. 3201 et seq. and 42
U.S.C. 2139a); Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et
seq.), as amended [(extended by Pub. L. 103-10, 107 Stat. 40 and by
Pub. L. 103-277, 108 Stat. 1407)]; Pub. L. 102-484, 106 Stat. 2575
(22 U.S.C. 6004); E.O. 12002 of July 7, 1977 (42 FR 35623, July 7,
1977), as amended; E.O. 12058 of May 11, 1978 (43 FR 20947, May 16,
1978); E.O. 12214 of May 2, 1980 (45 FR 29783, May 6, 1980); E.O.
12851 of June 11, 1993 (58 FR 33181, June 15, 1993); E.O. 12867 of
September 30, 1993 (58 FR 51747, October 4, 1993); E.O. 12924 of
August 19, 1994 (59 FR 43437 of August 23, 1994); E.O. 12938 of
November 14, 1994 (59 FR 59099 of November 16, 1994); and Notice of
August 15, 1995 (60 FR 42767).
3. The authority citation for 15 CFR part 776 continues to read as
follows:
Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et
seq.), as amended; Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et
seq.); Pub. L. 95-242, 92 Stat. 120 (22 U.S.C. 3201 et seq. and 42
U.S.C. 2139a); Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et
seq.), as amended; sec. 125, Pub. L. 99-64, 99 Stat. 156 (46 U.S.C.
466c); E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 1977), as
amended; E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 1978);
E.O. 12214 of May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 12867 of
September 30, 1993 (58 FR 51747 of October 4, 1993); E.O. 12924 of
August 19, 1994 (59 FR 43437, August 23, 1994); E.O. 12938 of
November 14, 1994 (59 FR 59099 of November 16, 1994); and Notice of
August 15, 1995 (60 FR 42767).
PART 770--[AMENDED]
Sec. 770.2 [Amended]
4. In Sec. 770.2 the definition for ``Supercomputer'' is removed.
PART 771--[AMENDED]
Sec. 771.14 [Amended]
5. Section 771.14 is amended by revising the phrase ``No
supercomputers may be exported under this general license.'' to read
``No computers with a CTP greater than 10,000 MTOPS may be exported to
Argentina, Hong Kong, South Korea, Singapore, and Taiwan under this
general license.'', in paragraph (d)(2).
Sec. 771.22 [Amended]
6. Section 771.22 is amended by removing and reserving paragraph
(c)(2)(i).
7. Section 771.26 is amended by revising paragraph (b), to read as
follows:
Sec. 771.26 General license SAFEGUARDS; international safeguards.
* * * * *
(b) Exclusions. No computers with a CTP greater than 7,000 MTOPS to
countries listed in Computer Tiers 3 and 4 (see Sec. 776.10 of this
subchapter for a complete list of the countries within Computer Tiers 3
and 4).
5. Part 771 is amended by adding a new Sec. 771.28 to read as
follows:
Sec. 771.28 General License G-CTP; exports of computers.
(a) Scope. General License G-CTP is established subject to the
provisions of this section authorizing exports of computers and
specially designed components therefor, exported separately or as part
of a system, and related equipment therefor when exported with these
computers as part of a system, for consumption in Computer Tier
countries as provided by this section. When evaluating your computer to
determine General License G-CTP eligibility, use the CTP parameter to
the exclusion of other technical parameters for computers classified
under ECCN 4A03A; with the exception of parameters specified as Missile
Technology (MT) concerns, 4A03A.e (equipment performing analog-to-
digital or digital-to-analog conversions exceeding the limits in ECCN
3A01A.a.5), and graphic accelerators or graphic coprocessors exceeding
a ``3-D vector rate'' of 10,000,000.
(b) Computer Tier 1. (1) Eligible countries. The countries that are
eligible to receive exports under this general license are Australia,
Austria, Belgium, Denmark, Finland, France, Germany, Greece, the Holy
See, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Mexico,
Monaco, Netherlands, New Zealand, Norway, Portugal, San Marino, Spain,
Sweden, Switzerland, Turkey, and the United Kingdom.
(2) Eligible Computers. The computers eligible for General License
G-CTP, are those with a CTP greater than 2,000 MTOPS.
(c) Computer Tier 2. (1) Eligible countries. The countries that are
eligible to receive exports under this general license include all
countries in Country
[[Page 2103]]
Group T 11 (except Mexico), Antigua and Barbuda, Bangladesh,
Benin, Bhutan, Botswana, Brunei, Burkina Faso, Burma (Myanmar),
Burundi, Cambodia, Cameroon, Cape Verde, Central Africa, Chad, Congo,
Cote d'Ivoire, Cyprus, Czech Republic, Dominica, Equatorial Guinea,
Eritrea, Ethiopia, Fiji, Gabon, Gambia (The), Ghana, Grenada, Guinea,
Guinea-Bissau, Hong Kong, Hungary, Indonesia, Kenya, Kiribati, Korea
(Republic of), Laos, Lesotho, Liberia, Madagascar, Malawi, Malaysia,
Maldives, Mali, Malta, Marshall Islands, Mauritius, Micronesia
(Federated States of), Mozambique, Namibia, Nauru, Nepal, Niger,
Nigeria, Palau, Papua New Guinea, Philippines, Poland, Rwanda, St.
Kitts & Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome &
Principe, Senegal, Seychelles, Sierra Leone, Singapore, Slovak
Republic, Slovenia, Solomon Islands, Somalia, South Africa, Sri Lanka,
Swaziland, Taiwan, Tanzania, Togo, Tonga, Thailand, Tuvalu, Uganda,
Western Sahara, Western Samoa, Zaire, Zambia, and Zimbabwe.
\11\ Countries included in Country Group T may be found in
Supplement No. 1 topPart 770 of this subchapter.
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(2) Eligible computers. The computers eligible for General License
G-CTP, are those having a Composite Theoretical Performance (CTP)
greater than 2000, but equal to or less than 10,000 Millions of
Theoretical Operations Per Second (MTOPS).
(d) Computer Tier 3. (1) Eligible countries. The countries that are
eligible to receive exports under this general license are Afghanistan,
Albania, Algeria, Andorra, Angola, Armenia, Azerbaijan, Bahrain,
Belarus, Bosnia & Herzegovina,12 Bulgaria, China (People's
Republic of), Comoros, Croatia,13 Djibouti, Egypt, Estonia,
Georgia, India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos,
Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav Republic
of), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar,
Romania, Russia, Saudi Arabia, Serbia & Montenegro,14 Tajikistan,
Tunisia, Turkmenistan, Ukraine, United Arab Emirates, Uzbekistan,
Vanuatu, Vietnam, and Yemen.
\12\ Except as provided in 31 CFR part 585.
\13\ Except as provided in 31 CFR part 585.
\14\ Except as provided in 31 CFR part 585.
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(2) Eligible computers. The computers eligible for General License
G-CTP, are those having a Composite Theoretical Performance (CTP)
greater than 2,000 Millions of Theoretical Operations Per Second
(MTOPS), but less than or equal to 7,000 MTOPS.
(3) Eligible exports. Only exports to permitted end-users and end-
uses located in countries in Computer Tier 3. General License G-CTP is
not authorized for exports and reexports to Computer Tier 3 for
military end-users and end-uses and nuclear, chemical, biological, or
missile end-users and end-uses defined in part 778 of this subchapter.
Exports under this general license may not be made to known military
end-users or to known military end-uses or known proliferation end-uses
or end-users defined in part 778 of this subchapter. Such exports will
continue to require a validated license and will be considered on a
case-by-case basis. Retransfers to military end-users or end-uses and
defined proliferation end-users and end-uses in eligible countries are
strictly prohibited without prior authorization.
(e) Restrictions. (1) Computers eligible for General License G-CTP
may not be accessed either physically or computationally by nationals
of Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria; except that
commercial consignees described in Sec. 776.10(j) of this subchapter
are prohibited only from giving such nationals user-accessible
programmability.
(2) Computers, software and specially designed technology eligible
for General License G-CTP may not be reexported/retransferred without
prior authorization from the Bureau of Export Administration, i.e.,
validated license, permissive reexport, or another general license.
This restriction will be conveyed to the consignee, via the Destination
Control Statement, see Sec. 786.6 of this subchapter.
PART 772--[AMENDED]
Sec. 772.11 [Amended]
8. Section 772.11 is amended by revising the phrase ``amendment
request, if the commodity described on the license is a supercomputer
or if the country'' to ``amendment request, if the country'' in
paragraph (k)(1)(i).
9. Section 772.11 is amended by revising the phrase ``(excluding
the People's Republic of China) and the commodity described on the
license is not a supercomputer.'' to ``(excluding the People's Republic
of China).'' in paragraph (k)(1)(ii).
10. Section 772.11 is amended by revising the phrase ``amendment
request, if the commodity described on the license is a supercomputer
or if the country'' to ``amendment request, if the country'' in
paragraph (l)(1)(i).
11. Section 772.11 is amended by revising the phrase ``(excluding
the People's Republic of China) and the commodity described on the
license is not a supercomputer.'' to ``(excluding the People's Republic
of China).'' in paragraph (l)(1)(ii).
PART 773--[AMENDED]
Supplement No. 1 to part 773, Commodities Excluded from the Special
License Procedure is amended:
a. By removing and reserving paragraph (a); and
b. By revising paragraph (l), to read as follows:
Supplement No. 1 to Part 773--Commodities Excluded From the Special
License Procedures
* * * * *
(l) Commodities subject to nuclear nonproliferation controls (see
Sec. 778.2 of this subchapter).
* * * * *
PART 774--[AMENDED]
13. In Sec. 774.2, paragraphs (a)(1), (k)(1)(i) and (m) are revised
to read as follows:
Sec. 774.2 Permissive reexports.2
\2\ See Sec. 774.9 of this subchapter for effect on foreign
laws.
---------------------------------------------------------------------------
* * * * *
(a) * * *
(1) May be exported directly from the United States to the new
country of destination under General License G-DEST, G-TEMP,\4\ GFW,
GCG, G-NNR, GATS, GUS, BAGGAGE, or G-CTP.
\4\ Commodities legally exported from the United States may be
reexported to a new country(ies) of destination under General
License G-TEMP provided the restrictions described in Sec. 771.22
are met and the commodities and software are returned to the country
from which the reexport occurred.
---------------------------------------------------------------------------
* * * * *
(k) * * *
(1) Except:
(i) Computers with a CTP greater than 10,000 MTOPS to Hong Kong and
South Korea.
* * * * *
(m) Reexports of computers from Japan, provided that the reexport
is authorized in accordance with the licensing requirements of Japan,
computers destined to Computer Tier 3 countries (See part 776.10(f) of
this subchapter) that have a CTP greater than 7,000 MTOPS and computers
destined to Computer Tier 2 countries (See part 776.10(e) of this
subchapter) that have a CTP greater than 10,000 MTOPS.
* * * * *
Sec. 774.3 [Amended]
14. Section 774.3 is amended by revising the phrase ``identified in
Sec. 774.3(c)(1)(i)(A) (1) or (2) or the
[[Page 2104]]
commodity described on the application is a supercomputer; or'' to read
``identified in Sec. 774.3(c)(1)(i)(A) (1) or (2), or'' in paragraph
(b)(3)(i).
15. Section 774.3 is amended by revising the phrase ``listed in
Sec. 774.3(c)(1)(i)(B), except that a supporting document must be
submitted when the commodity described on the application is a
supercomputer.'' to read ``listed in Sec. 774.3(c)(1)(i)(B).'' in
paragraph (b)(3)(ii).
16. Section 774.3 is amended by removing the last sentence in
paragraph (c)(1)(i)(B), which reads ``However, if the commodity
described on the application is a supercomputer, the supporting
document must be submitted with the request for reexport
authorization--not retained in the applicant's records.''
Sec. 775.1 [Amended]
17. Section 775.1 is amended by removing the fourth sentence of
paragraph (a) that reads ``However, if the commodity described on the
application is a supercomputer, the supporting document shall be
submitted to the Office of Export Licensing along with the
application.''
Sec. 775.2 [Amended]
18. Section 775.2 is amended by revising the phrase ``each
individual export license application where the commodity described on
the application is a supercomputer or when the country'' to read ``each
individual export license application where the country'' in paragraph
(a)(1).
19. Section 775.2 is amended by revising the phrase ``(except for
the People's Republic of China) and the commodity described on the
application is not a supercomputer, a Form BXA-629P shall be retained''
to read ``(except for the People's Republic of China), a Form BXA-629P
shall be retained'' in paragraph (a)(2).
Sec. 775.3 [Amended]
20. Section 775.3 is amended by removing the fifth sentence in
paragraph (a)(1), that reads ``If the commodity described on the
application is a supercomputer, the IC must be submitted to the Office
of Export Licensing along with the application--not retained in the
applicant's files.''
Sec. 775.7 [Amended]
21. Section 775.7 is amended by removing paragraph (a)(2)(iii).
Sec. 775.10 [Amended]
22. Section 775.10 is amended by removing and reserving paragraph
(f)(1).
23. Section 775.10 is amended by revising paragraphs (g)(1) (i) and
(ii), (g)(2)(i)(A) and (g)(2)(i)(B), to read as follows:
Sec. 775.10 Special provisions.
* * * * *
(g) * * *
(1) * * *
(i) Submitted to the Bureau of Export Administration, along with
the amendment request, if the country of ultimate destination is the
People's Republic of China or a country in Country Group Q, W, Y, or Z;
or
(ii) Retained in the applicant's files in accordance with the
provisions of this part 775 if the country of ultimate destination is a
country in Country Group S or V (except for the People's Republic of
China).
(2) * * *
(i) * * *
(A) Submitted to the Bureau of Export Administration, along with
the amendment request, if the country of ultimate destination is the
People's Republic of China or a country in Country Group Q, W, Y, or Z;
or
(B) Retained in the applicant's files in accordance with the
provisions of this part 775 if the country of ultimate destination is a
country in Country Group S or V (except for the People's Republic of
China).
* * * * *
PART 776--[AMENDED]
24. Section 776.10 is amended by removing the parenthetical
sentence at the end of paragraph (a)(1) and by adding paragraphs (d)
through (m), to read as follows:
Sec. 776.10 Electronic computers and related equipment.
* * * * *
(d) Computer Tier 1.--(1) Applicable countries. The countries
subject to the requirements of this paragraph (d) include: Australia,
Austria, Belgium, Denmark, Finland, France, Germany, Greece, the Holy
See, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Mexico,
Monaco, Netherlands, New Zealand, Norway, Portugal, San Marino, Spain,
Sweden, Switzerland, Turkey, and the United Kingdom.
(2) Validated license requirement. Except as provided in part
771.2(c) of this subchapter, no validated license is required for
exports of computers to and among countries listed in paragraph (d)(1)
of this section, for consumption in such countries or other disposition
in accordance with the EAR.
(e) Computer Tier 2.--(1) Applicable countries. The countries
subject to the requirements of this paragraph (e) include all countries
in Country Group T 2 (except Mexico), Antigua and Barbuda,
Bangladesh, Benin, Bhutan, Botswana, Brunei, Burkina Faso, Burma
(Myanmar), Burundi, Cambodia, Cameroon, Cape Verde, Central Africa,
Chad, Congo, Cote d'Ivoire, Cyprus, Czech Republic, Dominica,
Equatorial Guinea, Eritrea, Ethiopia, Fiji, Gabon, Gambia (The), Ghana,
Grenada, Guinea, Guinea-Bissau, Hong Kong, Hungary, Indonesia, Kenya,
Kiribati, Korea (Republic of), Laos, Lesotho, Liberia, Madagascar,
Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritius,
Micronesia (Federated States of), Mozambique, Namibia, Nauru, Nepal,
Niger, Nigeria, Palau, Papua New Guinea, Philippines, Poland, Rwanda,
St. Kitts and Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome
and Principe, Senegal, Seychelles, Sierra Leone, Singapore, Slovak
Republic, Slovenia, Solomon Islands, Somalia, South Africa, Sri Lanka,
Swaziland, Taiwan, Tanzania, Togo, Tonga, Thailand, Tuvalu, Uganda,
Western Sahara, Western Samoa, Zaire, Zambia, and Zimbabwe.
\2\. Countries included in Country Group T may be found in
Supplement No. 1 to part 770 of this subchapter.
---------------------------------------------------------------------------
(2) Validated license requirement. A validated license or reexport
authorization is required to export or reexport a computer having a
Composite Theoretical Performance (CTP) greater than 10,000 Millions of
Theoretical Operations Per Second (MTOPS) to a country in Computer Tier
2.
(3) Licensing policy. License applications for the countries listed
in paragraph (e)(1) of this section will generally be approved.
(f) Computer Tier 3.--(1) Applicable countries. The countries
subject to the requirements of this paragraph (f) include Afghanistan,
Albania, Algeria, Andorra, Angola, Armenia, Azerbaijan, Bahrain,
Belarus, Bosnia and Herzegovina,3 Bulgaria, China (People's
Republic of), Comoros, Croatia,4 Djibouti, Egypt, Estonia,
Georgia, India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos,
Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav Republic
of), Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar,
Romania, Russia, Saudi Arabia, Serbia and Montenegro,5,
Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab Emirates,
Uzbekistan, Vanuatu, Vietnam, and Yemen.
\3\ Except as provided in 31 CFR part 585.
\4\ Except as provided in 31 CFR part 585.
\5\ Except as provided in 31 CFR part 585.
---------------------------------------------------------------------------
(2) Validated license requirement.
(i) A validated license or reexport authorization is required to
export or
[[Page 2105]]
reexport computers with a CTP greater than 2,000 MTOPS to countries in
Computer Tier 3 to military end-users and end-uses and to nuclear,
chemical, biological, or missile end-users and end-uses defined in part
778 of this subchapter located in Computer Tier 3 countries.
(ii) A validated license or reexport authorization is required to
export or reexport computers with a CTP greater than 7,000 MTOPS to all
end-users and end-uses located in countries in Computer Tier 3.
(3) Licensing policy. License applications for exports and
reexports to military end-users and end-uses and nuclear, chemical,
biological, or missile end-users and end-uses defined in part 778 of
this subchapter located in countries in Computer Tier 3 will be
reviewed on a case-by-case basis using the following criteria:
(i) The presence and activities of countries and end-users of
national security and proliferation concern and the relationships that
exist between the government of the importing country and such
countries and end-users;
(ii) The ultimate consignee's participation in, or support of, any
of the following:
(A) Activities that involve national security concerns; or
(B) Nuclear, chemical, biological or missile proliferation
activities described in part 778 of this subchapter;
(iii) The extent to which the importing country is involved in
nuclear, chemical, biological, or missile proliferation activities
described in part 778 of this subchapter;
(iv) The end-user, whether the end-use is single-purpose or
multiple-purpose.
(4) Licensing policy for other end-uses and end-users. Licenses
applications for exports and reexports to other end-users and end-uses
located in countries in Computer Tier 3 will generally be approved.
(g) Computer Tier 4. (1) Applicable countries. The countries
subject to the requirements of this paragraph (g) include Cuba, Iran,
Iraq, Libya, North Korea, Sudan and Syria.
(2) Validated license requirement. A validated license or reexport
authorization is required to export or reexport to any end-user in
Syria or Sudan computers with a CTP equal to or greater than 6 MTOPS.
For validated license requirements for export or reexport of all
computers, regardless of CTP, to Cuba, Iran, Iraq, Libya, and North
Korea, see the following paragraphs:
(i) Cuba. You will need a license to export or reexport all
computers to Cuba, unless your transaction meets all the applicable
terms and conditions of any BXA General License, see part 771 of this
subchapter. Examples of General Licenses that may be considered for use
to export or reexport computers include G-TEMP (by the news media),
BAGGAGE, GUS, GIFT, SAFEGUARDS, and GLR. Also see the Office of Foreign
Assets Control's Regulations for Cuba (31 CFR part 515).
(ii) Iran. The Office of Foreign Assets Control (OFAC), within the
Department of the Treasury, administers an embargo against Iran under
the authority of the International Emergency Economic Powers Act (see
31 CFR part 560), which prohibits certain transactions with Iran,
including imports, exports, and certain reexports. The export and
reexport controls apply to transfers not only to Iran, but also to the
Government of Iran or any entity owned or controlled by the Government
of Iran. If you are a U.S. person, you should consult with OFAC for
authorization to export or reexport items subject to U.S. jurisdiction
to Iran, or to any entity owned or controlled by, or specially
designated as acting for or on behalf of, the Government of Iran. An
authorization from OFAC constitutes authorization under the EAR, and no
license from BXA is necessary.
(iii) Iraq. The Office of Foreign Assets Control (OFAC), within the
Department of the Treasury, administers an embargo against Iraq under
the authority of the International Emergency Economic Powers Act of
1977 and in conformance with United Nations Security Council
Resolutions. The applicable OFAC regulations, the Iraqi Sanctions
Regulations, are found at 31 CFR part 575. You should consult with OFAC
for authorization to export or reexport items subject to U.S.
jurisdiction to Iraq, or to any entity owned or controlled by, or
specially designated as acting for or on behalf of, the Government of
Iraq. An authorization from OFAC constitutes authorization under the
EAR, and no license from BXA is necessary. You may not use any BXA
general licenses or other BXA authorization to export or reexport to
Iraq, except for General Licenses BAGGAGE and GUS, as recognized in
OFAC's Iraqi Sanctions Regulations (31 CFR 575.507).
(iv) Libya. The Department of the Treasury and the Department of
Commerce maintain comprehensive controls on exports and reexports to
Libya. The Department of the Treasury, Office of Foreign Assets control
(OFAC) maintains comprehensive controls on export and transshipments to
Libya under the Libyan Sanctions Regulations (31 CFR part 550). To
avoid duplicate licensing procedures, OFAC and BXA have allocated
licensing responsibility as follows: OFAC licenses direct exports and
transshipments to Libya; BXA licenses reexports, exports of foreign
manufactured items containing U.S.-origin parts, components or
materials, and exports of foreign-produced direct product of U.S.
technology or software. Issuance of an OFAC license constitutes
authorization under the EAR, and no license from BXA is necessary.
Exports and reexports subject to the EAR that are not subject to the
Libyan Sanctions Regulations continue to require authorization from
BXA.
(v) North Korea. You will need a license to export or reexport all
computers to North Korea, unless your transaction meets all the
applicable terms and conditions of a general license, see part 771 of
this subchapter. Examples of general licenses that may used to export
or reexport computers include General License G-TEMP (by the news
media), BAGGAGE, GUS, GIFT, SAFEGUARDS, and GLR. Also see the Office of
Foreign Assets Control's Regulations for Cuba (31 CFR part 500).
(3) Licensing policy. Applications to export or reexport computers
to terrorist countries will generally be denied. See also part 785 of
this subchapter for greater detail concerning the licensing policy for
most of these countries.
(h) Safeguard conditions. Following interagency review of the
application, the Bureau of Export Administration will instruct the
exporter to submit a safeguard plan signed by the ultimate consignee
and certified by the export control authorities of the importing
country (see paragraph (i) of this section for certification by
government of importing country). The safeguard plan must indicate that
the ultimate consignee agrees to implement those safeguards required by
the Bureau of Export Administration as a condition of issuing the
license. The Bureau of Export Administration will inform exporters
concerning which of the following safeguards will be required as
license conditions:
(1) The applicant will assume responsibility for providing adequate
security against physical diversion of the computer during shipment
(e.g., delivery by either attended or monitored shipment, using the
most secure route possible--this precludes using the services or
facilities of any country listed in paragraph (g) of this section, i.e,
Computer Tier 4 countries).
(2) There will be no reexport or intra-country transfer of the
computer without prior written authorization from the Bureau of Export
Administration.
[[Page 2106]]
(3) The computer systems will be used only for those activities
approved on the license or reexport authorization.
(4) There will be no changes either in the end-users or the end-
uses indicated on the license without prior written authorization by
the Bureau of Export Administration.
(5) Only software that supports the approved end-uses will be
shipped with the computer system.
(6) The end-user will station security personnel at the computer
using facility to ensure that the appropriate security measures are
implemented.
(7) The exporter will station representatives at the computer using
facility, or make such individuals readily available, to guide the
security personnel in the implementation and operation of the security
measures.
(8) The security personnel will undertake the following measures
under the guidance of the exporter's representatives:
(i) The physical security of the computer using facility;
(ii) The establishment of a system to ensure the round-the-clock
supervision of computer security;
(iii) The inspection, if necessary, of any program or software to
be run on the computer system in order to ensure that all usage
conforms to the conditions of the license;
(iv) The suspension, if necessary, of any run in progress and the
inspection of any output generated by the computer to determine whether
the program runs or output conform with the conditions of the license;
(v) The inspection of usage logs daily to ensure conformity with
the conditions of the license and the retention of records of these
logs for at least a year;
(vi) The determination of the acceptability of computer users to
ensure conformity with the conditions of the license;
(vii) The immediate reporting of any security breaches or suspected
security breaches to the government of the importing country and to the
exporter's representatives;
(viii) The execution of the following key tasks:
(A) Establishment of new accounts;
(B) Assignment of passwords;
(C) Random sampling of data;
(D) Generation of daily logs;
(ix) The maintenance of the integrity and security of tapes and
data files containing archived user files, log data, or system backups.
(9) The exporter's representatives will be present when certain key
functions are being carried out (e.g., the establishment of new
accounts, the assignment of passwords, the random sampling of data, the
generating of daily logs, the setting of limits to computer resources
available to users in the development mode, the certification of
programs for conformity to the approved end-uses before they are
allowed to run in the production mode, and the modification to
previously certified production programs).
(10) The security personnel and the exporter's representatives will
provide monthly reports on the usage of the computer system and on the
implementation of the safeguards.
(11) The computer system will be housed in one secure building and
protected against theft and unauthorized entry at all times.
(12) Restricted nationals, i.e., nationals of Computer Tier 4
countries, will not be allowed access to computers:
(i) No physical or computational access to computers may be granted
to restricted nationals without prior written authorization from the
Bureau of Export Administration, except that commercial consignees
described in paragraph (j) of this section are prohibited only from
giving such nationals user-accessible programmability without prior
written authorization;
(ii) No passwords or IDs may be issued to restricted nationals;
(iii) No work may be performed on the computer on behalf of
restricted nationals; and
(iv) No conscious or direct ties may be established to networks
(including their subscribers) operated by restricted nationals.
(13) Physical access to the computer, the operator consoles, and
sensitive storage areas of the computer using facility will be
controlled by the security personnel, under the guidance and monitoring
of the exporter's representatives, and will be limited to the fewest
number of people needed to maintain and run the computer system.
(14) The computer will be equipped with the necessary software to:
permit access to authorized persons only, detect attempts to gain
unauthorized access, set and maintain limits on usage, establish
accountability for usage, and generate logs and other records of usage.
This software will also maintain the integrity of data and program
files, the accounting and audit system, the password or computational
access control system, and the operating system itself.
(i) The operating system will be configured so that all jobs can be
designated and tracked as either program development jobs or as
production jobs.
(ii) In the program development mode, users will be free, following
verification that their application conforms to the agreed end-use, to
create, edit, or modify programs, to use utilities such as editors,
debuggers, or compilers and to verify program operation. Programs in
the development mode will be subject to inspection as provided by
paragraph (h)(8)(iii) of this section.
(iii) In the production mode, users will have access to the full
range of computer resources, but will be prohibited from modifying any
program or using utilities that could modify any program. Before being
allowed to run in the production mode, a program will have to be
certified for conformity to approved end-uses by the security personnel
and the exporter's representatives.
(iv) Programs certified for execution in the production mode will
be protected from unauthorized modification by appropriate software and
physical security measures. Any modifications to previously certified
production programs will be approved by the security personnel under
the guidance and monitoring of the exporter's representatives.
(v) The computer will be provided with accounting and audit
software to ensure that detailed logs are maintained to record all
computer usage. A separate log of security-related events will also be
kept.
(vi) For each job executed in the production mode, the operating
system will record execution characteristics in order to permit
generation of a statistical profile of the program executed.
(15) The source code of the operating system will be accessible
only to the exporter's representatives. Only those individuals will
make changes in this source code.
(16) The security personnel, under the guidance of the exporter's
representatives, will change passwords for individuals frequently and
at unpredictable intervals.
(17) The security personnel, under the guidance of the exporter's
representatives, will have the right to deny passwords to anyone.
Passwords will be denied to anyone whose activity does not conform to
the conditions of the license.
(18) Misuse of passwords by users will result in denial of further
access to the computer.
(19) The exporter's representatives will install a strict password
system and provide guidance on its implementation.
(20) Only the exporter's representatives will be trained in
[[Page 2107]]
making changes in the password system and only they will make such
changes.
(21) No computer will be networked to other computers outside the
computer center without prior authorization from the Bureau of Export
Administration.
(22) Generally, remote terminals will not be allowed outside the
computer using facility without prior authorization by the Bureau of
Export Administration. If remote terminals are specifically authorized
by the license:
(i) The terminals will have physical security equivalent to the
safeguards at the computer using facility;
(ii) The terminals will be constrained to minimal amounts of
computer resources (CPU time, memory access, number of input-output
operations, and other resources);
(iii) The terminals will not be allowed direct computational access
to the computer (i.e., the security personnel, under the guidance of
the exporter's representatives, will validate the password and identity
of the user of any remote terminals before any such user is permitted
to access the computer)--all terminals will be connected to the
computer system by a dedicated access line and a network access
controller.
(23) There will be no direct input to the computer from remote
terminals. Any data originating from outside the computer using
facility, except for direct input from terminals within the same
compound as the computer using facility, will first be processed by a
separate processor or network access controller in order to permit
examination of the data prior to its entry into the computer.
(24) The exporter will perform all maintenance of the computer
system.
(25) Spare parts kept on site will be limited to the minimum
amount. Spares will be kept in an area accessible only to the
exporter's representatives. These representatives will maintain a
strict audit system to account for all spare parts.
(26) No development or production technology on the computer system
will be sent with the computer to the ultimate consignee.
(27) The end-user must immediately report any suspicions or facts
concerning possible violations of the safeguards to the exporter and to
the export control authorities of the importing country.
(28) The exporter must immediately report any information
concerning possible violations of the safeguards to the Bureau of
Export Administration. A violation of the safeguards might constitute
grounds for suspension or termination of the license, preventing the
shipment of unshipped spare parts, or the denial of additional licenses
for spare parts, etc.
(29) The end-user will be audited quarterly by an independent
consultant who has been approved by the export control authorities of
the importing and exporting countries, but is employed at the expense
of the end-user. The consultant will audit the computer usage and the
implementation of the safeguards.
(30) The installation and operation of the computer will be
coordinated and controlled by the following management structure:
(i) Steering Committee. The Steering Committee will comprise
nationals of the importing country who will oversee the management and
operation of the computer.
(ii) Security Staff. The Security Staff will be selected by the
end-user or the government of the importing country to ensure that the
required safeguards are implemented. This staff will be responsible for
conducting an annual audit to evaluate physical security,
administrative procedures, and technical controls.
(iii) Technical Consultative Committee. This committee will
comprise technical experts from the importing country and the exporting
company who will provide guidance in operating and maintaining the
computer. At least one member of the committee will be an employee of
the exporter. The committee will approve all accounts and maintain an
accurate list of all users. In addition, the committee will advise the
Steering Committee and the Security Staff concerning the security
measures needed to ensure compliance with the safeguards required by
the license.
(31) An ultimate consignee who is a multiple-purpose end-user, such
as a university, will establish a peer review group comprising experts
who represent each department or application area authorized for use on
the computer under the conditions of the license. This group shall have
the following responsibilities:
(i) Review all requests for computer usage and make recommendations
concerning the acceptability of all projects and users;
(ii) Submit these recommendations to the Security Staff and
Technical Consultative Committee for review and approval (see paragraph
(h)(28) of this section);
(iii) Establish acceptable computer resource parameters for each
project and review the results to verify their conformity with the
authorized end-uses, restrictions, and parameters; and
(iv) Prepare monthly reports that would include a description of
any runs exceeding the established parameters and submit them to the
security staff.
(32) The end-user will also cooperate with any post-shipment
inquiries or inspections by the U.S. Government or exporting company
officials to verify the disposition and/or use of the computer,
including access to the following:
(i) Usage logs, which should include, at a minimum, computer users,
dates, times of use, and amount of system time used;
(ii) Computer access authorization logs, which should include, at a
minimum, computer users, project names, and purpose of projects.
(33) The end-user will also cooperate with the U.S. Government or
exporting company officials concerning the physical inspection of the
computer using facility, on short notice, at least once a year and will
provide access to all data relevant to computer usage. This inspection
will include:
(i) Analyzing any programs or software run on the computer to
ensure that all usage complies with the authorized end-uses on the
license. This will be done by examining user files (e.g., source codes,
machine codes, input/output data) that are either on-line at the time
of the inspection or that have been previously sampled and securely
stored.
(ii) Checking current and archived usage logs for conformity with
the authorized end-uses and the restrictions imposed by the license.
(iii) Verifying the acceptability of all computer users in
conformity with the authorized end-uses and the restrictions imposed by
the license.
(34) Usage requests that exceed the quantity of monthly CPU time
specified on the license shall not be approved without prior written
authorization from the Bureau of Export Administration. Requests for
computational access approval shall include a description of the
intended purpose for which access is sought.
(35) (i) In addition to, or in lieu of, the normal access by on-
site exporting company staff or its representatives, the company, when
required by the exporting government, will provide a separate remote
electronic access capability to the computer for the purposes of
maintenance, troubleshooting, inspection of work in progress, and
auditing of all work performed on the computer. On-site and central
exporting company hardware and software maintenance facilities, at the
direction of the exporting company staff or its representatives, to
gather information such as:
[[Page 2108]]
(A) Statistical profiles of production jobs;
(B) Logs of jobs run in both production and development mode;
(C) Logs and reports of security related events.
(ii) If such method is used, the remote maintenance facilities will
be considered part of the operating system and protected accordingly,
and will be available only to exporting company operational staff or
its representatives. The maintenance hardware and software and
associated communication links will be protected to ensure the
integrity and authenticity of data and programs and to prevent
tampering with hardware.
(36) The export company staff or its representatives will be
required to provide personnel for a specified period of time at the
computer facility for management, operation, and safeguarding of the
computer.
(i) Certification by export control authorities of importing
country.
(1) The following importing government certification is required by
paragraph (h) of this section:
This is to certify that (name of ultimate consignee) has
declared to (name of appropriate foreign government agency) that the
computer (model name) will be used only for the purposes specified
in the end-use statement and that the ultimate consignee will
establish and adhere to all the safeguard conditions and perform all
other undertakings described in the end-use statement.
The (name of appropriate foreign government agency) will advise
the United States Government of any evidence that might reasonably
indicate the existence of circumstances (e.g., transfer of
ownership) that could affect the objectives of the security
safeguard conditions.
(2) Other importing government assurances regarding prohibited
activities may also be required on a case-by-case basis.
(j) Commercial consignees. Exports or reexports of computers that
are solely dedicated to the following non-scientific and non-technical
commercial business uses will usually be eligible for a reduced set of
security safeguard conditions:
(1) Financial services (e.g., banking, securities and commodity
exchanges);
(2) Insurance;
(3) Reservation systems;
(4) Point-of-sales systems;
(5) Mailing list maintenance for marketing purposes;
(6) Inventory control for retail/wholesale distribution.
(k) Special recordkeeping requirements. Exporters must keep
accurate records of each export of a computer with a CTP equal to or
greater than 2,000 MTOPS. These records will be made available to the
U.S. Government upon request. The records will include the following
information:
(1) Date of shipment;
(2) Name and address of the end-user and each intermediate
consignee;
(3) CTP of each computer in shipment;
(4) Volume of computers in shipment;
(5) Dollar value of shipment; and
(6) End-Use.
(l) Reporting requirements. Exporters are hereby notified that
consistent with the commitments reached with the new multilateral
regime that will replace the Coordinating Committee (COCOM), exporters
will be required to submit to BXA consolidated reports on exports to
certain destinations every six months of computers with a CTP equal to
or greater than 2,000 MTOPS. These reports will include for each such
export all the information required to be kept pursuant to paragraph
(k) of this section. Exports of computers above 2,000 MTOPS to certain
destinations will be subject to the reporting requirement once the
initial elements of the new multilateral regime are adopted, and the
first report will be due thereafter.
(m) General license availability. When evaluating your computer to
determine General License eligibility, use the CTP parameter to the
exclusion of other technical parameters for computers classified under
ECCN 4A03A; with the exception of parameters specified as Missile
Technology (MT) concerns, 4A03A.e (equipment performing analog-to-
digital conversions exceeding the limits in ECCN 3A01A.a.5.a), and
graphic accelerators or graphic coprocessors exceeding a ``3-D vector
rate'' of 10,000,000.
(1) General License G-DEST. General License G-DEST may be used for
exports of computers and specially designed components therefor,
exported separately or as part of a system, and related equipment
therefor when exported with these computers as part of a system, as
described in this section.
(i) Computer Tiers 1, 2 and 3. Exports of computers with a CTP
equal to or less 2,000 MTOPS and specially designed components
therefor, exported separately or as part of a system, and related
equipment therefor when exported with these computers as part of a
system, are eligible for General License G-DEST to countries in the
respective Computer Tiers.
(ii) Sudan and Syria. Exports of computers with a CTP less than 6
MTOPS and specially designed components therefor, exported separately
or as part of a system, and related equipment therefor when exported
with these computers as part of a system are eligible for General
License G-DEST to Sudan and Syria.
(2) General License G-CTP.
(i) Computer Tier 1. General License G-CTP is available for exports
of computers with a CTP greater than 2,000 MTOPS and specially designed
components therefor, exported separately or as part of a system, and
related equipment when exported with these computers as part of a
system therefor, to countries in Computer Tier 1.
(ii) Computer Tier 2. General License G-CTP is available for
exports of computers with a CTP greater than 2,000 MTOPS, but equal to
or less than 10,000 MTOPS and specially designed components therefor,
exported separately or as part of a system, and related equipment when
exported with these computers as part of a system therefor, to
countries in Computer Tier 2.
(iii) Computer Tier 3. General License G-CTP is available for
exports of computers with a CTP greater than 2,000 MTOPS, but less than
or equal to 7,000 MTOPS and specially designed components therefor,
exported separately or as part of a system, and related equipment when
exported with these computers as part of a system to permitted end-
users and end-uses located in countries in Computer Tier 3. General
License G-CTP is not authorized for exports or reexports to countries
in Computer Tier 3 for military end-users and end-uses and nuclear,
chemical, biological, or missile end-users and end-uses defined in part
778. (See Sec. 771.28 of this subchapter for more details of General
License G-CTP.)
(3) Other general licenses. Computers are eligible for many other
general licenses found in part 771 of this subchapter. Examples of
general licenses you may consider for exports of computers are: GLV,
BAGGAGE, GIT, GUS, GCG, GTF-U.S., GLR, GIFT, GLX, G-TEMP, and
SAFEGUARDS.
Sec. 776.11 [Removed and reserved]
25. Section 776.11 is removed and reserved.
26. Section 776.12 is amended by revising paragraph (b)
introductory text to read as follows:
Sec. 776.12 Parts, components, and materials incorporated abroad into
foreign-made products.
* * * * *
(b) Determining approval requirements. Prior written approval of
the Department of Commerce is required for the export from a foreign
country of
[[Page 2109]]
a foreign-made computer with a performance level exceeding 7,000 MTOPS
containing U.S.-origin controlled semiconductors (other than memory
circuits) classified under ECCN 3A01A or high speed interconnect
devices (ECCN 4A03A.d) to Computer Tier 3 and 4 countries, without
exception. Prior written approval also is required for any other
foreign-made product incorporating U.S. origin parts, components, or
materials, unless:
* * * * *
PART 785--[AMENDED]
Sec. 785.4 [Amended]
27. Section 785.4 is amended by revising the phrase ``Fluorocarbon
compounds for cooling fluids for radar and supercomputers described in
ECCN 1C94'' to read ``fluorocarbon compounds for cooling fluids for
radar and computers described in ECCN 1C94'' in the first and last
sentences in paragraph (d)(1)(xxxiii).
PART 786--[AMENDED]
28. Section 786.6 is amended by revising (a)(2) and (c)(2) to read
as follows:
Sec. 786.6 Destination control statements.
(a) * * *
(2) General License GLV, GTF-US, G-TEMP, GLR, GFW, GNSG, GCT, or G-
CTP.
* * * * *
(c) * * *
(2) General license shipments. For a shipment under any general
license, except General License GCT, GNSG, and G-CTP, any of the three
destination control statements in paragraph (d) of this section may be
used. For shipments under General License GCT, GNSG, and G-CTP,
exporters must use Statement No. 1 or 2.
* * * * *
PART 787--[AMENDED]
Sec. 787.13 [Amended]
29. Section 787.13 is amended by removing the reference ``776.11''
from the second sentence of paragraph (c).
PART 799--[AMENDED]
Supplement No. 1 to Sec. 799.1 [Amended]
30. In Category 4, the following amendments are made:
a. The Requirements sections of the following ECCNs are revised:
4A01A, 4A02A, 4A94F, 4D01A, 4D02A, 4D94F, 4E01A, and 4E94F; and
b. ECCN 4A03A, is revised to read as follows:
4A01A Electronic computers and related equipment, as follows, and
``assemblies'' and specially designed components therefor.
Requirements
Validated License Required: QSTVWYZ, (see Notes).
Unit: Computers and peripherals in number; parts and accessories in
$ value.
Reason For Control: NS, MT, NP, FP (see Notes).
GLV: $5000 for 4A01.a only; $0 for 4A01.b.
GCT: Yes, except MT and except Hong Kong and South Korea for
computers with a CTP greater than 10,000 MTOPS. (See Notes).
GCTP: No.
GFW: No.
Notes: 1. MT controls apply to 4A01.a.
2. FP and NP controls apply to all destinations, except:
a. Countries listed in Sec. 776.10(d) of this subchapter
(Computer Tier 1),
b. Countries listed in Sec. 776.10(e) of this subchapter
(Computer Tier 2), for computers with a CTP equal to or less than
10,000 MTOPS; and
c. Countries listed in Sec. 776.10(f) of this subchapter
(Computer Tier 3), for computers with a CTP equal to or less than
2,000 MTOPS to all end-users/uses or a CTP equal to or less than
7,000 MTOPS to end-users/uses that are not military end-users and
end-uses and are not nuclear, chemical, biological, or missile end-
users and end-uses defined in part 778 of this subchapter.
* * * * *
4A02A ``Hybrid computers'', as follows, and ``assemblies'' and
specially designed components therefor.
Requirements
Validated License Required: QSTVWYZ, (see Notes).
Unit: Computers and peripherals in number; parts and accessories in
$ value.
Reason For Control: NS, MT, NP, FP (see Notes).
GLV: $5000.
GCT: Yes, except MT and except Hong Kong and South Korea for
computers with a CTP greater than 10,000 MTOPS. (see Notes).
GCTP: No.
GFW: No.
Notes: 1. MT controls apply to hybrid computers combined with
specially designed ``software'', for modeling, simulation, or design
integration of complete rocket systems and unmanned air vehicle
systems described in Sec. 787.7 of this subchapter.
2. FP and NP controls apply to all destinations, except:
a. Countries listed in Sec. 776.10(d) of this subchapter
(Computer Tier 1),
b. Countries listed in Sec. 776.10(e) of this subchapter
(Computer Tier 2), for computers with a CTP equal to or less than
10,000 MTOPS; and
c. Countries listed in Sec. 776.10(f) of this subchapter
(Computer Tier 3), for computers with a CTP equal to or less than
2,000 MTOPS to all end-users/uses or a CTP equal to or less than
7,000 MTOPS to end-users/uses that are not military end-users and
end-uses and are not nuclear, chemical, biological, or missile end-
users and end-uses defined in part 778 of this subchapter.
* * * * *
4A03A ``Digital computers'', ``assemblies'', and related
equipment therefor, as described in this entry, and specially
designed components therefor.
Requirements
Validated License Required: QSTVWYZ, (see Note 5).
Unit: Computers and peripherals in number; parts and accessories in
Sec. value.
Reason for Control: NS, MT, NP, FP (see Notes).
GLV: $5,000.
GCT: Yes, except MT and FP, and except Hong Kong and South Korea
for computers with a CTP greater than 10,000 MTOPS. (See Notes).
GCTP: Yes, and specially designed components therefor, exported
separately or as part of a system, and related equipment therefor when
exported with these computers as part of a system. (See N.B.)
GFW: Yes, except MT and FP (see Notes), for computers with a CTP
not exceeding 1,000 MTOPS (500 MTOPS for eligible countries listed in
Supp. 4 to part 778 of this subchapter) and specially designed
components therefor, exported separately or as part of a system, and
related equipment therefor when exported with these computers as part
of a system.
N.B. 1: General License GFW is not available for the export of
commodities that the exporter knows will be used to:
a. Enhance the CTP to 2000 MTOPS or greater; or
b. Enhance the performance capability of a computer with a CTP
equal to or greater than 2000 MTOPS.
N.B. 2: To determine whether General License GFW may be used to
export related equipment controlled under another entry in the CCL,
consult the GFW paragraph under the Requirements heading of the
appropriate entry.
N.B. 3: General License G-CTP is not available for the export of
items that the exporter knows will be used to enhance the CTP beyond
the limits of General License G-CTP.
N.B. 4: When evaluating your computer to determine general license
eligibility, use the CTP parameter to the exclusion of other technical
parameters for computers classified under ECCN
[[Page 2110]]
4A03; with the exception of parameters specified as Missile Technology
(MT) concerns, 4A03A.e (Equipment performing analog-to-digital
conversions exceeding the limits in ECCN 3A01.a.5.a), and graphics
accelerators or graphics coprocessors exceeding a ``3-D vector rate''
of 10,000,000.
Notes: 1. MT controls apply to digital computers used as
ancillary equipment for test facilities and equipment that are
controlled by 9B05 or 9B06.
2. FP controls apply to computers for computerized fingerprint
equipment to all destinations except Australia, Japan, New Zealand
and members of NATO.
3. FP and NP controls apply to all destinations, except:
a. Countries listed in Sec. 776.10(d) of this subchapter
(Computer Tier 1),
b. Countries listed in Sec. 776.10(e) of this subchapter
(Computer Tier 2), for computers with a CTP equal to or less than
10,000 MTOPS; and
c. Countries listed in Sec. 776.10(f) of this subchapter
(Computer Tier 3), for computers with a CTP equal to or less than
2,000 MTOPS to all end-users/uses or a CTP equal to or less than
7,000 MTOPS to end-users/uses that are not military end-users and
end-uses and are not nuclear, chemical, biological, or missile end-
users and end-uses defined in part 778 of this subchapter.
4. FP controls apply to Iran, Sudan and Syria for computers
controlled by 4A03A or 4A94F (i.e., computers with a CTP of 6 MTOPS
or greater). See Sec. 785.4(d)(1) of this subchapter.
5. Exceptions to the validated license requirement may be found
in Sec. 776.10 of this subchapter.
List of Items Controlled
Note 1: 4A03 includes vector processors, array processors,
digital signal processors, logic processors, and equipment for
``image enhancement'' or signal processing''.
Note 2: The control status of the ``digital computers'' or
related equipment described in 4A03 is governed by the control
status of other equipment or systems provided:
a. The ``digital computers'' or related equipment are essential
for the operation of the other equipment or systems;
b. The ``digital computers'' or related equipment are not a
``principal element'' of the other equipment or systems; and
N.B. 1: The control status of ``signal processing'' or ``image
enhancement'' equipment specially designed for other equipment with
functions limited to those required for the other equipment is
determined by the control status of the other equipment even if it
exceeds the ``principal element'' criterion.
N.B. 2: For the control status of ``digital computers'' or related
equipment for telecommunications equipment, see the telecommunications
entries in Category 5.
c. The technology for the ``digital computers'' and related
equipment is governed by 4E.
``Digital computers'', ``assemblies'', and related equipment
therefor, as follows, and specially designed components therefor:
a. Designed or modified for ``fault tolerance'';
Note: For the purposes of 4A03.a, ``digital computers'' and
related equipment are not considered to be designed or modified for
``fault tolerance'', if they use:
1. Error detection or correction algorithms in ``main storage'';
2. The interconnection of two ``digital computers'' so that, if
the active central processing unit fails, an idling but mirroring
central processing unit can continue the system's functioning;
3. The interconnection of two central processing units by data
channels or by use of shared storage to permit one central
processing unit to perform other work until the second central
processing unit fails, at which time the first central processing
unit takes over in order to continue the system's functioning; or
4. The synchronization of two central processing units by
``software'' so that one central processing unit recognizes when the
other central processing unit fails and recovers tasks from the
failing unit.
b. ``Digital computers'' having a ``composite theoretical
performance'' (``CTP'') exceeding 260 million theoretical operations
per second (MTOPS), except as described in Sec. 776.10 of this
subchapter;
c. ``Assemblies'' specially designed or modified to be capable of
enhancing performance by aggregation of ``computing elements''
(``CEs'') so that the ``CTP'' of the aggregation exceeds the limit in
4A03.b.
Note 1: 4A03.c applies only to ``assemblies'' and programmable
interconnections not exceeding the limits in 4A03.b, when shipped as
unintegrated ``assemblies''. It does not apply to ``assemblies''
inherently limited by nature of their design for use as related
equipment controlled by 4A03.d to 4A03.f.
Note 2: 4A03.c does not control ``assemblies'' specially
designed for a product or family of products whose maximum
configuration does not exceed the limits of 4A03.b.
d. Graphics accelerators or graphics coprocessors exceeding a ``3-D
Vector Rate'' of 1,600,000;
e. Equipment performing analog-to-digital conversions exceeding the
limits in 3A01.a.5.a;
f. Equipment containing ``terminal interface equipment'' exceeding
the limits in 5A02.c;
Note: For the purposes of 4A03.f, ``terminal interface
equipment'' includes ``local area network'' interfaces, modems and
other communications interfaces. ``Local area network'' interfaces
are evaluated as ``network access controllers''.
g. Equipment, specially designed to provide for the external
interconnection of ``digital computers'' or associated equipment, that
allows communications at data rates exceeding 80 Mbytes/s.
Note: 4A03.g does not control internal interconnection equipment
(e.g., backplanes, buses) or passive interconnection equipment.
4A94F Computers, ``assemblies'' and related equipment not
controlled by 4A01, 4A02, or 4A03, and specially designed components
therefor.
Requirements:
Validated License Required: SZ, Iran, Sudan, Syria (see Note).
Unit: Computers and peripherals in number; parts and accessories in
$ value.
Reason For Control: FP.
GLV: $0.
GCT: No.
GFW: No.
Note: Exceptions to the validated license requirement may be
found in Sec. 776.10 of this subchapter.
* * * * *
4D01A ``Software'' specially designed or modified for the
``development'', ``production'' or ``use'' of equipment controlled by
4A01, 4A02, 4A03, or 4A04, or ``software'' controlled by 4D01, 4D02, or
4D03.
Requirements:
Validated License Required: QSTVWYZ.
Unit: $ value.
Reason For Control: NS, MT, FP, NP (see Notes).
GTDR: Yes, except MT, FP, and software for computers requiring a
validated license, see Notes.
GTDU: No.
Notes: 1. MT controls apply to ``software'' specially designed
or modified for the ``development,'' ``production'' or ``use'' of
equipment controlled for MT by 4A01, 4A02, and 4A03.
2. FP and NP controls apply to all destinations, except:
a. Countries listed in Sec. 776.10(d) of this subchapter
(Computer Tier 1),
b. Countries listed in Sec. 776.10(e) of this subchapter
(Computer Tier 2), for ``software'' for computers with a CTP equal
to or less than 10,000 MTOPS; and
c. Countries listed in Sec. 776.10(f) of this subchapter
(Computer Tier 3), for computers with a CTP equal to or less than
2,000 MTOPS to all end-users/uses or a CTP equal to or less than
7,000 MTOPS to end-users/uses that are not military end-users and
end-uses and are not nuclear, chemical, biological, and missile end-
users and end-uses defined in part 778 of this subchapter.
3. FP controls apply to all destinations except Australia,
Japan, New Zealand and members of NATO, for ``software'' specially
designed or modified for the ``development'', ``production'', or
``use'' of computers for computerized fingerprint equipment.
[[Page 2111]]
4D02A ``Software'' specially designed or modified to support
``technology'' controlled by 4E01 or 4E02.
Requirements
Validated License Required: QSTVWYZ.
Unit: $ value.
Reason For Control: NS, MT, NP, FP (see Notes).
GTDR: Yes, except MT, FP, and for ``software'' for computers that
require a validated license, see Notes.
GTDU: No.
Notes: 1. MT controls apply to ``software'' specially designed
or modified to support technology for the ``development,''
``production'' or ``use'' of equipment controlled for MT by 4A01,
4A02 and 4A03.
2. FP and NP controls apply to all destinations, except:
a. Countries listed in Sec. 776.10(d) of this subchapter
(Computer Tier 1),
b. Countries listed in Sec. 776.10(e) of this subchapter
(Computer Tier 2), for software for computers with a CTP equal to
or less than 10,000 MTOPS; and
c. Countries listed in Sec. 776.10(f) of this subchapter
(Computer Tier 3), for computers with a CTP equal to or less than
2,000 MTOPS to all end-users/uses or a CTP equal to or less than
7,000 MTOPS to end-users/uses that are not military end-users and
end-uses and are not nuclear, chemical, biological, and missile end-
users and end-uses defined in part 778 of this subchapter.
3. FP controls apply to all destinations except Australia,
Japan, New Zealand and members of NATO, for ``software'' specially
designed or modified for the ``development'', ``production'', or
``use'' of computers for computerized fingerprint equipment.
4D94F ``Software'' specially designed for the ``development'',
``production'', or ``use'' of ``digital computers'', ``assemblies'' and
related equipment therefor controlled by 4A94F.
Requirements
Validated License Required: SZ, Iran, Sudan, Syria.
Unit: $ value.
Reason For Control: FP.
GTDR: No.
GTDU: No.
4E01A Technology, according the General Technology Note, for the
``development'', ``production'' or ``use'' of equipment controlled by
4A01, 4A02, 4A03, or 4A04, or ``software'' controlled by 4D01, 4D02, or
4D03.
Requirements
Validated License Required: QSTVWYZ.
Reason for Control: NS, MT, NP, FP (see Notes).
GTDR: Yes, except MT, FP, and ``technology'' required for computers
with a CTP greater than 2,000 MTOPs.
GTDU: No.
Notes: 1. MT controls apply to certain items controlled by 4A01,
4A02, 4A03, 4D01, or 4D02. See Reason for Control paragraphs in
these entries to determine which items are subject to MT controls.
2. FP and NP controls apply to all destinations.
3. FP controls apply, for all destinations except Australia,
Japan, New Zealand, and members of NATO, to technology for the
``development'', ``production'', or ``use'' of computers controlled
by 4A03 for computerized fingerprint equipment.
4E94F Technology for the ``development'', ``production'', or
``use'' of ``digital computers'', ``assemblies'' and related equipment
therefor controlled by 4A94F.
Requirements
Validated License Required: SZ, Iran, Sudan, and Syria.
Reason for Control: FP.
GTDR: No.
GTDU: No.
Dated: January 4, 1996.
Sue E. Eckert,
Assistant Secretary for Export Administration.
[FR Doc. 96-293 Filed 1-22-96; 2:52 pm]
BILLING CODE 3510-DT-P
