Response: The Related Controls paragraph of ECCN 3A611 in this second proposed rule contains the following statement "Electronic components not enumerated on the USML or another 600 series entry that are `specially designed' for a military vehicle controlled by USML Category VII or ECCN 0A606 are controlled by ECCN 0A606.x." Additionally, the final definition of "specially designed," in the April 16 (initial implementation) rule, excludes certain named parts and components, parts and components that are identical to parts and components used in civil items that are in production or that differ from items only with respect to fit. It also excludes parts and components where documentation contemporaneous with development indicates the part or component was designed for a civil item or for no specific item. BIS welcomes comments on the impact of that definition on the provisions of this proposed rule.
Comment: One commenter expressed approval of using the word "required" in ECCN 3E611, because it serves to focus the controls on critical technology and is well understood by exporters.
Response: BIS agrees. The term "required" is based on the Wassenaar Arrangement general technology note and is used in technology ECCNs throughout the EAR to focus the scope of the control.
Comment: One commenter questioned whether the reference to " SEC 746.3 (Iraq)" is needed in note 1 in ECCN 4A003.
Response: The reference to SEC 746.3 (Iraq) is currently in note 1 in ECCN 4A003. The note indicates that certain transactions that do not require a license for many destinations do, however, require a license pursuant to SEC 746.3 of the EAR for destinations in Iraq. It is unrelated to the purpose of the proposed revisions to ECCN 4A003 in the November 28 (military electronics) rule, which was to impose the missile technology (MT Column 1) reason for control on analog-to-digital converters in 4A003.e that meet or exceed the parameters of ECCN 3A101.a.4. Therefore, BIS is not making any changes to the text of proposed ECCN 4A003 as a result of this comment.
Comment: One commenter stated that ECCN 5A001.f and .h duplicate items found in proposed USML Category XI(a)(4)(iii), and recommended that the overlap be resolved before releasing a final rule.
Response: The proposed Department of State rule being published simultaneously with this proposed rule contains a note to USML Category XI(a)(4)(iii) stating that "Paragraph XI(a)(4)(iii) does not control mobile telecommunications jamming equipment determined to be subject to the EAR via a commodity jurisdiction determination . . . ." BIS believes that the commodity jurisdiction process will effectively resolve the overlap that this commenter perceived and is, therefore, not making any changes to the text of ECCN 5A001.f and .h in this proposed rule.
Comment: One commenter stated that changes proposed to USML Category XI(b) would complicate the classification of equipment currently classified in 5A001.i and 5A980, and recommended that both rules be revised to create jurisdictional "bright lines" and "positive lists" of the equipment controlled in each list as intended by the Export Control Reform Initiative.
Response: BIS believes that the USML Category XI(b) as set forth in the proposed Department of State rule being published simultaneously with this proposed rule, along with the order of review in the April 16 (initial implementation) final rule published by BIS (See 78 FR 22735, April 16, 2013), will provide certainty as to which agency has jurisdiction over which articles. Under the order of review, items enumerated on the USML are subject to the ITAR, even if they are within the parameters of an ECCN. Accordingly, BIS is making no changes to ECCNs 5A001.i or 5A980 as a result of this comment. However, if upon review of the Department of State text in light of the "order of review," readers believe uncertainty still exists, BIS will consider comments to that effect. In addition, BIS invites recommendations from the public regarding text that would provide a clear distinction between the items controlled by USML Category XI(b) and items controlled by ECCN 5A001.i or 5A980.