Bureau of Export Administration, Commerce § 770.2 (x) Evidence of the item being exhibited at for example, a western producer or purchaser a trade fair in a foreign country, particularly of the item, a recognized expert, a reputable for the purpose of inducing sales of the item trade publication, or independent laboratory; to the foreign country; (v) A comparative list identifying, by man- (xi) A copy of the export control laws or ufacturers and model numbers, the key per- regulations of the source country, showing formance components and the materials used that the item is not controlled; or in the item that qualitatively affect the per- (xii) A catalog or brochure indicating the formance of the U.S. and foreign items; item is for sale in a specific country. (vi) Evidence of the interchangeability of (2) Foreign (non-U.S.) source: U.S. and foreign items; (i) Names of foreign manufacturers of the (vii) Patent descriptions for the U.S. and item including, if possible, addresses and foreign items; telephone numbers; (viii) Evidence that the U.S. and foreign (ii) A report from a reputable source of in- items meet a published industry, national, or formation on commercial relationships that international standard; a foreign manufacturer is not linked finan- (ix) A report or eyewitness account, by cially or administratively with a U.S. com- deposition or otherwise, of the foreign item’s pany; operation; (iii) A list of the components in the U.S. (x) Evidence concerning the foreign manu- item and foreign item indicating model num- facturers’ corporate reputation; bers and their sources; (xi) Comparison of the U.S. and foreign end (iv) A schematic of the foreign item identi- item(s) made from a specific commodity, fying its components and their sources; tool(s), device(s), or technical data; or (v) Evidence that the item is a direct prod- (xii) Evidence of the reputation of the for- uct of foreign technology (e.g., a patent law eign item including, if possible, information suit lost by a U.S. producer, a foreign pat- on maintenance, repair, performance, and ent); other pertinent factors. (vi) Evidence of indigenous technology, production facilities, and the capabilities at SUPPLEMENT NO. 2 TO PART 768—ITEMS those facilities; or ELIGIBLE FOR EXPEDITED LICENSING (vii) Evidence that the parts and compo- PROCEDURES [RESERVED] nents of the item are of foreign origin or are exempt from U.S. licensing requirements by the parts and components provision § 732.4 of PART 770—INTERPRETATIONS the EAR. (3) Sufficient quantity: Sec. (i) Evidence that foreign sources have the 770.1 Introduction. item in serial production; 770.2 Item interpretations. (ii) Evidence that the item or its product is 770.3 Interpretations related to exports of used in civilian applications in foreign coun- technology and software to destinations tries; in Country Group D:1. (iii) Evidence that a foreign country is AUTHORITY: 50 U.S.C. app. 2401 et seq.; 50 marketing in the specific country an item of U.S.C. 1701 et seq.; E.O. 12924, 59 FR 43437, 3 its indigenous manufacture; CFR, 1994 Comp., p. 917; E.O. 13026, 61 FR (iv) Evidence of foreign inventories of the 58767, 3 CFR, 1996 Comp., p. 228; Notice of Au- item; gust 3, 2000 (65 FR 48347, August 8, 2000). (v) Evidence of excess capacity in a foreign country’s production facility; § 770.1 Introduction. (vi) Evidence that foreign countries have not targeted the item or are not seeking to In this part, references to the EAR purchase it in the West; are references to 15 CFR chapter VII, (vii) An estimate by a knowledgeable subchapter C. This part provides com- source of the foreign country’s needs; or modity, technology, and software in- (viii) An authoritative analysis of the terpretations. These interpretations worldwide market (i.e., demand, production rate for the item for various manufacturers, clarify the scope of controls where such plant capacities, installed tooling, monthly scope is not readily apparent from the production rates, orders, sales and cumu- Commerce Control List (CCL) (see Sup- lative sales over 5–6 years). plement No. 1 to part 774 of the EAR) (4) Comparable quality: and other provisions of the Export Ad- (i) A sample of the foreign item; ministration Regulations. (ii) Operation or maintenance manuals of the U.S. and foreign items; § 770.2 Item interpretations. (iii) Records or a statement from a user of the foreign item; (a) Interpretation 1: Anti-friction bear- (iv) A comparative evaluation, preferably ing or bearing systems and specially de- in writing, of the U.S. and foreign items by, signed parts. (1) Anti-friction bearings 539 VerDate 11<MAY>2000 09:37 Mar 07, 2001 Jkt 194046 PO 00000 Frm 00539 Fmt 8010 Sfmt 8010 Y:\SGML\194046T.XXX pfrm13 PsN: 194046T § 770.2 15 CFR Ch. VII (1–1–01 Edition) or bearing systems shipped as spares or piece of equipment, whether or not the replacements are classified under Ex- wire or cable is cut to length and port Control Classification Numbers whether or not it is fitted with connec- (ECCNs) 2A001, 2A002, 2A003, 2A004, tors at one or both ends, so long as it 2A005, and 2A006 (ball, roller, or needle- is in normal quantity necessary to roller bearings and parts). This applies make the original installation of the to separate shipments of anti-friction equipment and is necessary to its oper- bearings or bearing systems and anti- ation. friction bearings or bearing systems (2) Wire or cable exported as replace- shipped with machinery or equipment ment or spares, or for further manufac- for which they are intended to be used ture is controlled under the applicable as spares or replacement parts. wire or cable ECCN only. This includes (2) An anti-friction bearing or bear- wire or cable, whether or not cut to ing system physically incorporated in a length or fitted with connectors at one segment of a machine or in a complete or both ends. machine prior to shipment loses its (d) Interpretation 4: Telecommuni- identity as a bearing. In this scenario, cations equipment and systems. Control the machine or segment of machinery equipment for paging systems (broad- containing the bearing is the item sub- cast radio or selectively signalled re- ject to export control requirements. ceiving systems) is defined as circuit (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- systems—(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 items—(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 540 VerDate 11<MAY>2000 09:37 Mar 07, 2001 Jkt 194046 PO 00000 Frm 00540 Fmt 8010 Sfmt 8010 Y:\SGML\194046T.XXX pfrm13 PsN: 194046T Bureau of Export Administration, Commerce § 770.2 machine is shipped separately, it Exporter Services, Room 1099A, U.S. should be reported under the Schedule Department of Commerce, Washington, B number appropriate for the indi- DC 20230, before reporting a shipment vidual item being exported.