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448 Part 770—Interpretations § 770.1 15 CFR Ch. VII (1±1±97 Edition) (vii) Evidence that the parts and compo- SUPPLEMENT NO. 2 TO PART 768ÐITEMS nents of the item are of foreign origin or are ELIGIBLE FOR EXPEDITED LICENSING exempt from U.S. licensing requirements by PROCEDURES [RESERVED] the parts and components provision § 732.4 of the EAR. (3) Sufficient quantity: PART 770ÐINTERPRETATIONS (i) Evidence that foreign sources have the item in serial production; Sec. (ii) Evidence that the item or its product is 770.1 Introduction. used in civilian applications in foreign coun- 770.2 Commodity interpretations. tries; 770.3 Interpretations related to exports of (iii) Evidence that a foreign country is technology and software to destinations marketing in the specific country an item of in Country Group D:1. its indigenous manufacture; 770.4 Interpretations related to chemical (iv) Evidence of foreign inventories of the mixturesÐde minimis exceptions exam- item; ples. (v) Evidence of excess capacity in a foreign AUTHORITY: 50 U.S.C. app. 2401 et seq.; 50 country's production facility; U.S.C. 1701 et seq.; E.O. 12924, 3 CFR, 1994 (vi) Evidence that foreign countries have Comp., p. 917; Notice of August 15, 1995 (60 FR not targeted the item or are not seeking to 42767, August 17, 1995). purchase it in the West; SOURCE: 61 FR 12920, Mar. 25, 19 unless oth- (vii) An estimate by a knowledgeable erwise noted. source of the foreign country's needs; or (viii) An authoritative analysis of the § 770.1 Introduction. worldwide market (i.e., demand, production rate for the item for various manufacturers, In this part, references to the EAR plant capacities, installed tooling, monthly are references to 15 CFR chapter VII, production rates, orders, sales and cumu- subchapter C. This part provides com- lative sales over 5±6 years). modity, technology, and software in- (4) Comparable quality: terpretations. These interpretations (i) A sample of the foreign item; clarify the scope of controls where such (ii) Operation or maintenance manuals of scope is not readily apparent from the the U.S. and foreign items; Commerce Control List (CCL) (see Sup- (iii) Records or a statement from a user of plement No. 1 to part 774 of the EAR) the foreign item; and other provisions of the Export Ad- (iv) A comparative evaluation, preferably ministration Regulations. in writing, of the U.S. and foreign items by, for example, a western producer or purchaser § 770.2 Commodity interpretations. of the item, a recognized expert, a reputable trade publication, or independent laboratory; (a) Interpretation 1: Anti-friction bear- (v) A comparative list identifying, by man- ing or bearing systems and specially de- ufacturers and model numbers, the key per- signed parts. (1) Anti-friction bearings formance components and the materials used or bearing systems shipped as spares or in the item that qualitatively affect the per- replacements are classified under Ex- formance of the U.S. and foreign items; port Control Classification Numbers (vi) Evidence of the interchangeability of U.S. and foreign items; (ECCNs) 2A001, 2A002, 2A003, 2A004, (vii) Patent descriptions for the U.S. and 2A005, and 2A006 (ball, roller, or needle- foreign items; roller bearings and parts). This applies (viii) Evidence that the U.S. and foreign to separate shipments of anti-friction items meet a published industry, national, or bearings or bearing systems and anti- international standard; friction bearings or bearing systems (ix) A report or eyewitness account, by shipped with machinery or equipment deposition or otherwise, of the foreign item's for which they are intended to be used operation; as spares or replacement parts. (x) Evidence concerning the foreign manu- (2) An anti-friction bearing or bear- facturers' corporate reputation; ing system physically incorporated in a (xi) Comparison of the U.S. and foreign end segment of a machine or in a complete item(s) made from a specific commodity, tool(s), device(s), or technical data; or machine prior to shipment loses its (xii) Evidence of the reputation of the for- identity as a bearing. In this scenario, eign item including, if possible, information the machine or segment of machinery on maintenance, repair, performance, and containing the bearing is the item sub- other pertinent factors. ject to export control requirements. 448 VerDate 22-AUG-97 12:00 Sep 16, 1997 Jkt 174043 PO 00000 Frm 00448 Fmt 8010 Sfmt 8010 E:\CFR\174043.054 174043 Bureau of Export Administration, Commerce § 770.2 (3) An anti-friction bearing or bear- switching equipment in Category 5 of ing system not incorporated in a seg- the CCL. ment of a machine prior to shipment, (e) Interpretation 5: Numerical control but shipped as a component of a com- systemsÐ(1) Classification of ``Numerical plete unassembled (knocked-down) ma- Control'' Units. ``Numerical control'' chine, is considered a component of a units for machine tools, regardless of machine. In this scenario, the complete their configurations or architectures, machine is the item subject to export are controlled by their functional char- license requirements. acteristics as described in ECCN (b) Interpretation 2: Classification of 2B001.a. ``Numerical control'' units in- ``parts'' of machinery, equipment, or other clude computers with add-on ``motion itemsÐ(1) An assembled machine or unit control boards''. A computer with add- of equipment is being exported. In in- on ``motion control boards'' for ma- stances where one or more assembled chine tools may be controlled under machines or units of equipment are ECCN 2B001.a even when the computer being exported, the individual compo- alone without ``motion control boards'' nent parts that are physically incor- is not subject to licensing require- porated into the machine or equipment ments under Category 4 and the ``mo- do not require a license. The license or tion control boards'' are not controlled general exception under which the under ECCN 2B001.b. complete machine or unit of equipment (2) Export documentation requirement. is exported will also cover its compo- (i) When preparing a license applica- nent parts, provided that the parts are tion for a numerical control system, normal and usual components of the the machine tool and the control unit machine or equipment being exported, are classified separately. If either the or that the physical incorporation is machine tool or the control unit re- not used as a device to evade the re- quires a license, then the entire unit quirement for a license. requires a license. If either a machine (2) Parts are exported as spares, re- tool or a control unit is exported sepa- placements, for resale, or for stock. In in- rately from the system, the exported stances where parts are exported as component is classified on the license spares, replacements, for resale, or for application without regard to the other stock, a license is required only if the parts of a possible system. appropriate entry for the part specifies (ii) When preparing the Shipper's Ex- that a license is required for the in- port Declaration (SED), a system being tended destination. shipped complete (i.e., machine and (c) Interpretation 3: Wire or cable cut to control unit), should be reported under length. (1) Wire or cable may be in- the Schedule B number for each ma- cluded as a component of a system or chine. When either a control unit or a piece of equipment, whether or not the machine is shipped separately, it wire or cable is cut to length and should be reported under the Schedule whether or not it is fitted with connec- B number appropriate for the individ- tors at one or both ends, so long as it ual item being exported. is in normal quantity necessary to (f) Interpretation 6: Parts, accessories, make the original installation of the and equipment exported as scrap. Parts, equipment and is necessary to its oper- accessories, or equipment that are ation. being shipped as scrap should be de- (2) Wire or cable exported as replace- scribed on the SED in sufficient detail ment or spares, or for further manufac- to be identified under the proper ECCN. ture is controlled under the applicable When commodities declared as parts, wire or cable ECCN only. This includes accessories, or equipment are shipped wire or cable, whether or not cut to in bulk, or are otherwise not packaged, length or fitted with connectors at one packed, or sorted in accordance with or both ends. normal trade practices, the Customs (d) Interpretation 4: Telecommuni- Officer may require evidence that the cations equipment and systems. Control shipment is not scrap. Such evidence equipment for paging systems (broad- may include, but is not limited to, bills cast radio or selectively signalled re- of sale, orders and correspondence indi- ceiving systems) is defined as circuit cating whether the commodities are 449 VerDate 22-AUG-97 12:00 Sep 16, 1997 Jkt 174043 PO 00000 Frm 00449 Fmt 8010 Sfmt 8010 E:\CFR\174043.055 174043 § 770.2 15 CFR Ch. VII (1±1±97 Edition) scrap or are being exported for use as (E) Twenty-four volt electrical sys- parts, accessories, or equipment. tems; (g) Interpretation 7: Scrap arms, ammu- (F) Shielded electrical system (elec- nition, and implements of war. Arms, tronic emission suppression); or ammunition, and implements of war, (G) Puncture-proof or run-flat tires. as defined in the U.S. Munitions List, (ii) Automotive vehicles fall into two and are under the jurisdiction of the categories. U.S. Department of State (22 CFR parts (A) Military automotive vehicles on the 120 through 130), except for the follow- Munitions List, new and used. Auto- ing, which are under the jurisdiction of motive vehicles in this category are the Department of Commerce: primarily combat (fighting) vehicles, (1) Cartridge and shell cases that with or without armor and/or arma- have been rendered useless beyond the ment, ``designed for specific fighting possibility of restoration to their origi- function.'' These automotive vehicles nal identity by means of excessive are licensed for export by the U.S.
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