Even where an exporter or reexporter would need to obtain a license under the EAR, that process is both cheaper and the process is more flexible than obtaining a license under the ITAR. For example, unlike the ITAR, the EAR does not require license applicants to provide BIS with a purchase order with the application, meaning that small (or any) entities can enter into negotiations or contracts for the sale of goods without having to caveat any sale presentations with a reference to the need to obtain a license under the ITAR before shipment can occur. Second, the EAR allows license applicants to obtain licenses to cover all expected exports or reexports to a particular consignee over the life of a license, rather than having to obtain a new license for every transaction.
In short, BIS expects that the changes to the EAR proposed in this rule will have a positive effect on all affected entities, including small entities. While BIS acknowledges that this rule may have some cost impacts to small (and other) entities, those costs are more than offset by the benefits to the entities from the licensing procedures under the EAR, which are much less costly and less time consuming than the procedures under the ITAR. Accordingly, the Chief Counsel for Regulation for the
List of Subjects in 15 CFR Part 774
Exports, Reporting and recordkeeping requirements.
Accordingly, part 774 of the Export Administration Regulations (15 CFR Parts 730-774) is proposed to be amended as follows:
1. The authority citation for 15 CFR part 774 continues to read as follows:
Authority: 50 U.S.C. app.
2. In Supplement No. 1 to Part 774, Category 3, amend Export Control Classification Number (ECCN) 3A101 by:
a. revising the Related Controls paragraph in the List of Items Controlled section; and
b. revising paragraph a in the Items paragraph in the List of Items Controlled section, to read as follows:
Supplement No. 1 to Part 774--The Commerce Control List
* * * * *
3A101 Electronic equipment, devices and components, other than those controlled by 3A001, as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Related Controls: See also ECCN 4A003.e for controls on analog-to-digital converter, printed circuit boards, or modules for computers.
* * * * *
a. Analog-to-digital converters usable in "missiles," and having any of the following characteristics:
a.1. "Specially designed" to meet military specifications for ruggedized equipment;
a.2. "Specially designed" for military use and being any of the following types:
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