Pages 2305±2592 Vol. 63 1±15±98 eDt 2DC9 71 a 4 98Jt009 O000Fm001Ft41 ft41 :F\MA5A.X 15jaws E:\FR\FM\A15JAW.XXX Sfmt4710 Fmt4710 Frm00001 PO00000 Jkt010199 17:15Jan14, 1998 VerDate 02-DEC-97 No. 10 federal register January 15,1998 Thursday Office (GPO). Access Regulations (CFR) Free, easy,onlineaccesstoselected The released concurrently. that theonlineandprintedversionsof until acompletesetisavailable.GPOtakingstepsso incrementally throughoutcalendaryears1996and1997 GPO Access services andaccessmethods,seepageIIorcontactthe For additionalinformationon http://www.access.gpo.gov/nara/cfr service astheybecomeavailable. New titlesand/orvolumeswillbeaddedtothisonline Committee oftheFederalRegister. official onlineeditionsauthorizedbytheAdministrative announcement ontheinsidecoverofthisissue. For informationonbriefingsinWashington,DC,see Briefings onhowtousetheFederalRegister ★ ★ CFR Code ofFederalRegulations , aserviceoftheUnitedStatesGovernmentPrinting Email: [email protected] Phone: toll-free:1-888-293-6498 and User SupportTeamvia: Federal Register CFR Now AvailableOnline GPO Access volumes isnowavailablevia (Selected Volumes) titles willbeaddedto via GPO Access on GPO Access Code ofFederal CFR GPO Access products, , arethe will be GPO 1 II Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998

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Contents Federal Register Vol. 63, No. 10

Thursday, January 15, 1998

Agricultural Marketing Service Grants and cooperative agreements; availability, etc.: NOTICES Special education and rehabilitative services— Canned beets, canned carrots, and canned white potatoes; Children with disabilities programs, etc., 2588–2591 United States Standards for Grades, 2356–2357 Canned sweet potatoes; United States Standards for Grades, Employment and Training Administration 2357–2358 NOTICES Agency information collection activities: Agriculture Department Proposed collection; comment request, 2420–2421 See Agricultural Marketing Service See Forest Service Energy Department See Grain Inspection, Packers and Stockyards See Federal Energy Regulatory Commission Administration See Southwestern Power Administration NOTICES Assassination Records Review Board Atomic energy agreements; subsequent arrangements, 2372 NOTICES Applications, hearings, determinations, etc.: Meetings; Sunshine Act, 2361 Comprehensive National Energy Strategy, 2371–2372

Centers for Disease Control and Prevention Environmental Protection Agency NOTICES NOTICES Agency information collection activities: Committees; establishment, renewal, termination, etc.: Submission for OMB review; comment request, 2394– National Drinking Water Advisory Council, 2391 2396 Meetings: National Drinking Water Advisory Council, 2391–2392 Children and Families Administration Export Administration Bureau RULES Head Start Program: RULES Export licensing: Early Head Start program; performance standards for Commerce control list— grantees and agencies providing services; Wassenaar Arrangement List of Dual-Use Items; implementation; correction, 2312–2314 implementation; commerce control list revisions Civil Rights Commission and reporting requirements, 2452–2555 NOTICES Federal Communications Commission Meetings; State advisory committees: RULES Massachusetts, 2361–2362 Common carrier services: Competitive bidding procedures, 2315–2350 Coast Guard Radio stations; table of assignments: RULES Kansas, 2350 Drawbridge operations: Mississippi, 2350 New Jersey, 2308–2312 Washington, 2350–2351 Wyoming, 2351–2352 Commerce Department PROPOSED RULES See Export Administration Bureau Radio stations; table of assignments: See International Trade Administration Colorado, 2354 See National Oceanic and Atmospheric Administration Florida, 2354 Texas, 2355 Consumer Product Safety Commission NOTICES NOTICES Reporting and recordkeeping requirements, 2392 Applications, hearings, determinations, etc.: Black & Decker Corp., 2367 Federal Election Commission NOTICES Defense Department Meetings; Sunshine Act, 2392–2393 NOTICES Agency information collection activities: Federal Energy Regulatory Commission Proposed collection; comment request, 2367–2369 NOTICES Meetings: Electric rate and corporate regulation filings: Science Board, 2369 Georgia Power Co. et al., 2375–2378 Pacific Gas & Electric Co. et al., 2378–2381 Education Department Hydroelectric applications, 2381–2383 NOTICES Applications, hearings, determinations, etc.: Agency information collection activities: Central Maine Power Co., 2372 Proposed collection; comment request, 2370–2371 CNG Transmission Corp., 2373

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Consumers Energy Co., 2373 Indian Affairs Bureau Egan Hub Partners, L.P., 2373 NOTICES Equitrans, L.P., 2373–2374 Reservation establishment, additions, etc.: Granite State Gas Transmission, Inc., 2374 Cow Creek Band of Umpqua Indian Tribe, OR, 2408–2409 Idaho Power Co., 2374 LG&E Natural Pipeline Co., 2374–2375 Interior Department West Texas Gas, Inc., 2375 See Fish and Wildlife Service Williams Natural Gas Co.; correction, 2449 See Indian Affairs Bureau See Land Management Bureau Federal Maritime Commission See National Park Service NOTICES Agreements filed, etc., 2393 International Trade Administration Freight forwarder licenses: NOTICES International Forwarding & Logistics, Inc., et al., 2393 Antidumping: Ferrosilicon from— Federal Reserve System Brazil, 2362–2363 NOTICES Tapered roller bearings and parts, finished and Banks and bank holding companies: unfinished, etc., from— Change in bank control, 2393 Japan, 2558–2585 Formations, acquisitions, and mergers, 2393–2394 Permissible nonbanking activities, 2394 International Trade Commission NOTICES Fish and Wildlife Service Import investigations: NOTICES Broad-based consumption tax; U.S. trade and Endangered and threatened species permit applications, competitiveness, 2413–2414 2405–2407 Steel wire rope from— Marine mammals permit applications, 2407–2408 Thailand, 2414–2415 Food and Drug Administration Justice Department RULES See Justice Programs Office Animal drugs, feeds, and related products: NOTICES Chloretracycline, sulfathiazole, penicillin, 2306–2307 Agency information collection activities: NOTICES Proposed collection; comment request, 2415 Harmonisation International Conference; guidelines Submission for OMB review; comment request, 2415– availability: 2416 E2B data elements for transmission of individual case safety reports, 2396–2404 Justice Programs Office Meetings: NOTICES Life Sciences Research Office, 2404–2405 Grants and cooperative agreements; availability, etc.: Public housing; building safer communities, 2416 Forest Service Victims of Crime Act; State compensation and assistance, NOTICES 2416–2417 Environmental statements; notice of intent: Bridger-Teton National Forest, WY, 2358–2360 Labor Department See Employment and Training Administration Grain Inspection, Packers and Stockyards Administration See Occupational Safety and Health Administration PROPOSED RULES NOTICES Agricultural commodities standards: Privacy Act: Inspection services; use of contractors; meaning of terms Systems of records, 2417–2420 and who may be licensed, 2353–2354 NOTICES Land Management Bureau Barge inspection services: NOTICES Pilot program, 2360–2361 Agency information collection activities: Submission for OMB review; comment request, 2409 Health and Human Services Department Environmental statements; availability, etc.: See Centers for Disease Control and Prevention Ashley and Uinta National Forests; Duchesne and See Children and Families Administration Wasatch Counties, UT, 2409–2410 See Food and Drug Administration Meetings: See Health Care Financing Administration Resource advisory councils— See Public Health Service New Mexico, 2410 NOTICES Public land and resource management, improvement by Meetings: science use; meeting, 2411 Consumer Protection and Quality Advisory Commission, Realty actions; sales, leases, etc.: 2394 Idaho, 2411–2412 Health Care Financing Administration National Credit Union Administration NOTICES NOTICES Agency information collection activities: Agency information collection activities: Submission for OMB review; comment request, 2405 Proposed collection; comment request, 2421

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Credit unions: NOTICES Community development revolving loan program; 1998 Organization, functions, and authority delegations: application period, 2422 Centers for Disease Control and Prevention; correction, 2449 National Highway Traffic Safety Administration NOTICES Securities and Exchange Commission Motor vehicle safety standards; exemption petitions, etc.: NOTICES Trinity Trailer Mfg., Inc., 2446 Agency information collection activities: Proposed collection; comment request, 2428 National Oceanic and Atmospheric Administration Meetings; Sunshine Act, 2436 Self-regulatory organizations; proposed rule changes: NOTICES Meetings: American Stock Exchange, Inc., 2437–2443 Western Pacific Fishery Management Council, 2363–2364 Applications, hearings, determinations, etc.: Permits: Goldman, Sachs & Co. et al., 2428–2435 Endangered and threatened species, 2364–2366 Government Securities Clearing Corp., 2435–2436 Marine mammals, 2366–2367 Public utility holding company filings, 2436 Southwestern Power Administration National Park Service NOTICES NOTICES Integrated System power rates and opportunities: Environmental statements; availability, etc.: New power rates; rate order approved and placed in Oregon Caves National Monument, OR, 2412 effect on interim basis, 2383–2389 Environmental statements; notice of intent: Power rates: Glen Echo Park, MD, 2412–2413 Robert D. Willis project, 2390–2391 Meetings: Keweenaw National Historical Park Advisory State Department Commission, 2413 NOTICES Agency information collection activities: National Science Foundation Proposed collection; comment request, 2443–2446 NOTICES Antartic Conservation Act of 1978; permit applications, Transportation Department etc., 2422 See Coast Guard See National Highway Traffic Safety Administration Nuclear Regulatory Commission NOTICES Treasury Department Agency information collection activities: NOTICES Proposed collection; comment request, 2422–2423 Agency information collection activities: Environmental statements; availability, etc.: Submission for OMB review; comment request, 2446– Vermont Yankee Nuclear Power Corp., 2425–2426 2447 Regulatory guides; issuance, availability, and withdrawal, 2426 United States Information Agency Applications, hearings, determinations, etc.: NOTICES Florida Power Corp., 2423–2425 Grants and cooperative agreements; availability, etc.:NIS college and university partnerships program, 2447– Occupational Safety and Health Administration 2448 NOTICES Meetings: Occupational Safety and Health National Advisory Committee, 2421 Separate Parts In This Issue Part II Pension Benefit Guaranty Corporation Department of Commerce, Export Administration, 2452– RULES 2555 Single-employer plans: Allocation of assets— Interest assumptions for valuing benefits, 2307–2308 Part III NOTICES Department of Commerce, International Trade Single-employer and multiemployer plans: Administration, 2558–2585 Interest rates and assumptions, 2426–2427 Part IV Personnel Management Office Department of Education, 2588–2591 RULES Organizations representing Federal employees and other organizations; agency relationships, 2305–2306 Reader Aids Additional information, including a list of telephone Public Health Service numbers, finding aids, reminders, and a list of Public Laws See Centers for Disease Control and Prevention appears in the Reader Aids section at the end of this issue. See Food and Drug Administration

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Electronic Bulletin Board Free Electronic Bulletin Board service for Public Law numbers, Federal Register finding aids, and a list of documents on public inspection is available on 202–275– 1538 or 275–0920.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

5 CFR 251...... 2305 7 CFR Proposed Rules: 868...... 2353 15 CFR 732...... 2452 740...... 2452 742...... 2452 743...... 2452 744...... 2452 746...... 2452 762...... 2452 774...... 2452 21 CFR 558...... 2306 29 CFR 4044...... 2307 33 CFR 117...... 2308 45 CFR 1301...... 2312 1304...... 2312 1305...... 2312 1306...... 2312 47 CFR 1...... 2315 21...... 2315 24...... 2315 26...... 2315 27...... 2315 73 (5 documents) ...... 2350, 2351 90...... 2315 95...... 2315 Proposed Rules: 73 (4 documents) ...... 2354, 2355

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Rules and Regulations Federal Register Vol. 63, No. 10

Thursday, January 15, 1998

This section of the FEDERAL REGISTER 1996; Pub. L. 104–177, 110 Stat. 1563, is to caution Federal employees against contains regulatory documents having general August 6, 1996. serving as representatives for applicability and legal effect, most of which As amended, 18 U.S.C. Section organizations other than labor are keyed to and codified in the Code of 205(d)(1)(B) allows a Federal officer or organizations. The Federal department Federal Regulations, which is published under employee, if not inconsistent with the that commented on the proposed rule 50 titles pursuant to 44 U.S.C. 1510. performance of his or her duties, to asserts that the third situation set out in The Code of Federal Regulations is sold by represent without compensation a non- the supplementary information portion the Superintendent of Documents. Prices of profit cooperative, voluntary, of the proposed rule in which an new books are listed in the first FEDERAL professional, recreational or similar employee is still prohibited from REGISTER issue of each week. organization if a majority of the representing the views of the organization’s or group’s members are organization or group is not altogether Government officers or employees or clear. OFFICE OF PERSONNEL their spouses or dependent children. MANAGEMENT Subsection (d)(2) of amended Section III. Analysis of Comments 205 sets forth the circumstances in The three public interest 5 CFR Part 251 which a Federal employee may not act organizations that commented on the as agent or attorney representing an proposed rule were concerned that the RIN 3206±AH72 employee organization. There are three language of the rule is unnecessarily situations in which an employee is negative in tone and could have the Agency Relationships With prohibited from representing the views effect of discouraging Federal Organizations Representing Federal of the organization or group. The first employees from serving as Employees and Other Organizations situation prevents employee representatives for organizations under representation when the subject of the the terms and conditions of the AGENCY: Office of Personnel representation is a claim against the Management. proposed rule. It is suggested that the United States. 18 U.S.C. § 205(d)(2)(A). regulation focuses on the remaining ACTION: Final rule. The second situation prohibits the restrictions in 18 U.S.C. § 205 and gives prescribed action during a judicial or the appearance that its primary purpose SUMMARY: The Office of Personnel administrative proceeding where the Management (OPM) is issuing final is to caution Federal employees against organization or group is a party. 18 serving as representatives for regulations governing agency relations U.S.C. § 205(d)(2)(B). The third situation with managerial, supervisory, organizations. When the 5 CFR part 251 expressly disallows Federal employees regulations were first published, they professional, and other organizations from requesting grants, contracts or that are not labor organizations. These provided for the new statutory Federal funds on behalf of an employee exception and contained a reference in regulations will permit greater employee organization. 18 U.S.C. § 205(d)(2)(C). representation of employee 5 CFR 251.101(f) to the 18 U.S.C. § 205 Accordingly, paragraph (f) of the Part restrictions which remained. 60 FR organizations under certain 251 regulation is being revised to reflect circumstances. 51371–51373, October 2, 1995. The the new law. intent was to caution Federal employees EFFECTIVE DATE: January 15, 1998. The proposed rule requested and make them aware that this authority FOR FURTHER INFORMATION CONTACT: comments and prescribed a 60-day exists and restricts them under certain Lorraine Lewis, General Counsel, U.S. comment period. OPM received four circumstances from representing comments on the proposed rule, three Office of Personnel Management, Office organizations before Federal agencies. In by public interest organizations and one of the General Counsel, 1900 E Street, the Supplementary Information to the by a Federal department. The four NW., Washington, DC 20415–0001, final rule OPM responded to a comments were timely. OPM has Telephone: (202) 606–1700, FAX: (202) commenter who took issue with the carefully considered the points made in 606–2609. inclusion of subpart (f): the comments and reviewed the entire SUPPLEMENTARY INFORMATION: Part 251 regulation and relevant OPM is bound by the Department of Justice’s interpretation of 18 U.S.C. § 205 and I. Background portions of the Federal Employee Representation Improvement Act of it would be improper for the regulation to OPM published in the Federal 1996. OPM has decided to make no authorize employees to represent non-labor organizations as part of their official duties. Register on April 22, 1997, at 62 FR change to the proposed rule. 19525, proposed regulations on agency Indeed, it was out of concern that some relationships with organizations II. Summary of Comments officials might misconstrue these regulations as authorizing dealings with employee representing Federal employees and The three public interest representatives of non-labor organizations other organizations. These regulations organizations that commented on the without regard to 18 U.S.C. § 205 as reflected a provision of the Federal proposed rule expressed concern that as interpreted by the Department of Justice that Employee Representation Improvement currently written it may tend to OPM included the cautionary note of section Act of 1996 which modified the 18 discourage Federal employees from 251.101(f). Should a law be passed making U.S.C. § 205 restrictions to permit exercising representation rights they the cautionary note unnecessary, OPM will employee representation of employee may have. It is suggested that the modify its regulations. 61 FR 32914, June 26, organizations under certain language of the proposed rule is 1996. circumstances. The Federal Employee unnecessarily negative in tone and gives The Federal Employee Representation Representation Improvement Act of the appearance that its primary purpose Improvement Act of 1996; Public Law

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104–177, 110 Stat. 1563, August 6, 1996, information of the proposed regulations for guidance regarding any conflicts of modifying the 18 U.S.C. § 205 is clear and does not need modification. interest that may arise. restrictions to permit employee Regulatory Flexibility Act [FR Doc. 98–974 Filed 1–14–98; 8:45 am] representation of employee BILLING CODE 6325±01±P organizations under certain I certify that this regulation will not circumstances, prompted OPM to have a significant economic impact on modify its final rule regarding 5 CFR a substantial number of small entities part 251. DEPARTMENT OF HEALTH AND because it will only affect Federal HUMAN SERVICES OPM, in its proposed rule, captures Government employees and non-labor the essence of that relaxed restriction, organizations representing such Food and Drug Administration while noting that subsection (d)(2) of employees. amended Section 205 sets forth the 21 CFR Part 558 circumstances in which a Federal Executive Order 12866, Regulatory employee may not act as agent or Review New Animal Drugs for Use in Animal attorney representing an employee This rule has been reviewed by the Feeds; Chlortetracycline, Sulfathiazole, organization. It would be misleading to Office of Management and Budget in Penicillin exclude the restrictions the law accordance with Executive Order 12866. maintains, especially since violations of AGENCY: Food and Drug Administration, the Section 205 restrictions subject List of Subjects in 5 CFR Part 251 HHS. individual employees to the civil and/ ACTION: Final rule. Government employees. or criminal penalties set forth in 18 SUMMARY: The Food and Drug U.S.C. § 216. Office of Personnel Management. Administration (FDA) is amending the The Federal department commented Janice R. Lachance, animal drug regulations to reflect on the third restriction set forth in the Director. approval of an abbreviated new animal amendment and reflected in the Accordingly, OPM is amending 5 CFR drug application (ANADA) filed by supplementary information portion of part 251 as follows: Hoffmann-La Roche, Inc. The ANADA the proposed rule. The commenter provides for use of Type A medicated suggested that the third situation which PART 251ÐAGENCY RELATIONSHIPS article containing chlortetracycline, disallows Federal employees from WITH ORGANIZATIONS sulfathiazole, and penicillin to make a requesting grants, contracts or Federal REPRESENTING FEDERAL Type C medicated swine feed. funds on behalf of an employee EMPLOYEES AND OTHER EFFECTIVE DATE: January 15, 1998 organization is not clear in the ORGANIZATIONS supplementary information portion of FOR FURTHER INFORMATION CONTACT: the proposed rule. It is suggested that 1. The authority citation for part 251 Lonnie W. Luther, Center for Veterinary the language does not make clear continues to read as follows: Medicine (HFV–102), Food and Drug whether an employee could negotiate Administration, 7500 Standish Pl., Authority: 5 U.S.C. § 1104; 5 U.S.C. Chap Rockville, MD 20855, 301–827–0209. with a Federal agency on behalf of an 7; 5 U.S.C. § 7135; 5 U.S.C. § 7301; E.O. organization over the terms of a 11491. SUPPLEMENTARY INFORMATION: Hoffmann- contract. The commenter points out that La Roche, Inc., 340 Kingsland St., a review of the law and the legislative 2. In § 251.101, paragraph (f) is Nutley, NJ 07110–1199, filed ANADA history make it clear that the restriction revised to read as follows: 200–167 that provides using Aureozol, is meant to apply only when the a Type A medicated article containing § 251.101 Introduction contract involves the expenditure of chlortetracycline calcium complex Federal funds. For example, an * * * * * equivalent to 40 grams per pound (g/lb) employee could represent a day-care (f) Federal employees, including chlortetracycline hydrochloride, center in the day-care center’s rent, but management officials and supervisors, sulfathiazole 8.8 percent (40 g/lb), and the employee could not represent the may communicate with any Federal penicillin (from penicillin procaine) 20 center in the center’s application for a agency, officer, or other Federal entity g/lb, to make a Type C medicated swine grant from the U.S. Department of on the employee’s own behalf. However, feed. The Type C swine feed contains Education. Federal employees should be aware that 100 g of chlortetracycline, 100 g of We agree with the commenter that the 18 U.S.C. 205, in pertinent part, restricts sulfathiazole, and 50 g of penicillin per restriction on representation remains for Federal employees from acting, other ton of feed. It is a complete feed for any matter that ‘‘involves a grant, than in the proper discharge of their swine raised in confinement (dry lot) or contract, or other agreement (including official duties, as agents or attorneys for on limited pasture. It is used in swine a request for any such grant, contract, or any person or organization other than a pre-starter and starter feeds for agreement) providing for the labor organization, before any Federal reduction of incidence of cervical disbursement of Federal funds to the agency or other Federal entity in abscesses, treatment of bacterial organization or group.’’ Federal connection with any matter in which enteritis (salmonellosis or necrotic Employee Representation Improvement the United States is a party or has a enteritis caused by Salmonella Act of 1996, Public Law 104–177, Sec. direct and substantial interest. An choleraesuis and vibrionic dysentery), 2(d)(2)(C). The relevant legislative exception to the prohibition found in 18 maintenance of weight gain in the history states: ‘‘[d]ue to limited Federal U.S.C. 205 permits Federal employees to presence of atropic rhinitis, increased resources, employee organizations represent certain nonprofit rate of weight gains and improved feed should be on the same footing as organizations before the Government efficiency from 10 pounds of body other[s] looking for Federal funds.’’ except in connection with specified weight to 6 weeks post-weaning. It is House Report No. 104–230, August 4, matters. Agency officials and employees used for swine grower and finisher feed 1995. OPM believes, however, that the are therefore advised to consult with for reduction of incidence of cervical language in the supplementary their designated agency ethics officials abscesses, treatment of bacterial

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Boehringer Ingelheim Animal Health, For annuity benefits, the interest Inc.’s NADA 39–077 CSP 500 Fermazole 2. Section 558.155 Chlortetracycline, assumptions will be 5.50 percent for the Brand (chlortetracycline (as sulfathiazole, penicillin is amended in first 25 years following the valuation hydrochloride), sulfathiazole, penicillin paragraph (a)(2) by removing ‘‘000010’’ date and 5.25 percent thereafter. The (from penicillin procaine)). The ANADA and adding in its place ‘‘054273’’. annuity interest assumptions represent a is approved as of January 15, 1998, and Dated: January 2, 1998. decrease (from those in effect for the regulations are amended in 21 CFR Stephen F. Sundlof, January 1998) of 0.10 percent for the 558.155(a)(2) to reflect the approval. Director, Center for Veterinary Medicine. first 25 years following the valuation The basis of approval is discussed in the [FR Doc. 98–703 Filed 1–14–98; 8:45 am] date and are otherwise unchanged. For benefits to be paid as lump sums, the freedom of information summary. BILLING CODE 4160±01±F This approval is for use of a Type A interest assumptions to be used by the medicated article to make Type C PBGC will be 4.25 percent for the period medicated feeds. The Type A medicated during which a benefit is in pay status PENSION BENEFIT GUARANTY and 4.00 percent during any years article is a Category II drug which, as CORPORATION provided in 21 CFR 558.4, requires an preceding the benefit’s placement in pay approved form FDA 1900 for making a 29 CFR Part 4044 status. The lump sum interest Type C medicated feed. The Animal assumptions are unchanged from those Drug Availability Act of 1996 (Pub. L. Allocation of Assets in Single- in effect for January 1998. The PBGC has determined that notice 104–250) replaces the procedures for Employer Plans; Interest Assumptions and public comment on this amendment approval of certain medicated feeds for Valuing Benefits are impracticable and contrary to the with a general licensing system. A AGENCY: Pension Benefit Guaranty public interest. This finding is based on medicated feed previously requiring an Corporation. the need to determine and issue new approved medicated feed application interest assumptions promptly so that now requires manufacturing in a ACTION: Final rule. the assumptions can reflect, as licensed medicated feed mill. Therefore, SUMMARY: The Pension Benefit Guaranty accurately as possible, current market use of this Type A medicated article to Corporation’s regulation on Allocation conditions. make Type C medicated feeds as of Assets in Single-Employer Plans Because of the need to provide provided in ANADA 200–167 is prescribes interest assumptions for immediate guidance for the valuation of required to be manufactured at a valuing benefits under terminating benefits in plans with valuation dates licensed feed mill. single-employer plans. This final rule during February 1998, the PBGC finds In accordance with the freedom of amends the regulation to adopt interest that good cause exists for making the information provisions of 21 CFR part assumptions for plans with valuation assumptions set forth in this 20 and 514.11(e)(2)(ii), a summary of dates in February 1998. amendment effective less than 30 days safety and effectiveness data and EFFECTIVE DATE: February 1, 1998. after publication. information submitted to support FOR FURTHER INFORMATION CONTACT: The PBGC has determined that this approval of this application may be seen Harold J. Ashner, Assistant General action is not a ‘‘significant regulatory in the Dockets Management Branch Counsel, Office of the General Counsel, action’’ under the criteria set forth in (HFA–305), Food and Drug Pension Benefit Guaranty Corporation, Executive Order 12866. Administration, 12420 Parklawn Dr., Because no general notice of proposed 1200 K Street, NW., Washington, DC rm. 1–23, Rockville, MD 20857, between rulemaking is required for this 20005, 202–326–4024. (For TTY/TDD 9 a.m. and 4 p.m., Monday through amendment, the Regulatory Flexibility users, call the Federal relay service toll- Friday. Act of 1980 does not apply. See 5 U.S.C. free at 1–800–877–8339 and ask to be 601(2). FDA has determined under 21 CFR connected to 202–326–4024.) 25.33(a)(1) that this action is of a type SUPPLEMENTARY INFORMATION: The List of Subjects in 29 CFR Part 4044 that does not individually or PBGC’s regulation on Allocation of Pension insurance, Pensions. cumulatively have a significant effect on Assets in Single-Employer Plans (29 the human environment. Therefore, In consideration of the foregoing, 29 CFR part 4044) prescribes actuarial CFR part 4044 is amended as follows: neither an environmental assessment assumptions for valuing plan benefits of nor an environmental impact statement terminating single-employer plans PART 4044ÐALLOCATION OF is required. covered by title IV of the Employee ASSETS IN SINGLE-EMPLOYER List of Subjects in 21 CFR Part 558 Retirement Income Security Act of 1974. PLANS Among the actuarial assumptions 1. The authority citation for part 4044 Animal drugs, Animal feeds. prescribed in part 4044 are interest continues to read as follows: Therefore, under the Federal Food, assumptions. These interest Drug, and Cosmetic Act and under assumptions are intended to reflect Authority: 29 U.S.C. 1301(a), 1302(b)(3), authority delegated to the Commissioner current conditions in the financial and 1341, 1344, 1362. of Food and Drugs and redelegated to annuity markets. 2. In appendix B, a new entry is the Center for Veterinary Medicine, 21 Two sets of interest assumptions are added to Table I, and Rate Set 52 is CFR part 558 is amended as follows: prescribed, one set for the valuation of added to Table II, as set forth below.

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The introductory text of each table is Appendix B to Part 4044—Interest republished for the convenience of the Rates Used to Value Annuities and reader and remains unchanged. Lump Sums

TABLE I.ÐANNUITY VALUATIONS

[This table sets forth, for each indicated calendar month, the interest rates (denoted by i1, i2, * * *, and referred to generally as it) assumed to be in effect between specified anniversaries of a valuation date that occurs within that calendar month; those anniversaries are specified in the columns adjacent to the rates. The last listed rate is assumed to be in effect after the last listed anniversary date.]

The values of it are: For valuation dates occurring in the monthÐ it for t = it for t = it for t =

******* February 1998 ...... 0550 1±25 .0525 >25 N/A N/A

TABLE II.ÐLUMP SUM VALUATIONS [In using this table: (1) For benefits for which the participant or beneficiary is entitled to be in pay status on the valuation date, the immediate an- nuity rate shall apply; (2) For benefits for which the deferral period is y years (where y is an integer and 0 < y ≤ n1), interest rate i1 shall apply from the valuation date for a period of y years, and thereafter the immediate annuity rate shall apply; (3) For benefits for which the de- ferral period is y years (where y is an integer and n1 < y ≤ n1 + n2), interest rate i2 shall apply from the valuation date for a period of y ¥ n1 years, interest rate i1 shall apply for the following n1 years, and thereafter the immediate annuity rate shall apply; (4) For benefits for which the deferral period is y years (where y is an integer and y > n1 + n2), interest rate i3 shall apply from the valuation date for a period of y ≤ n1Ðn2 years, interest rate i2 shall apply for the following n2 years, interest rate i1 shall apply for the following n1 years, and thereafter the im- mediate annuity rate shall apply.]

For plans with a valuation Immediate Deferred annuities (percent) Rate set date annuity rate i i n n On or after Before (percent) i1 2 3 1 2

******* 52 02±1±98 03±1±98 4.25 4.00 4.00 4.00 7 8

Issued in Washington, D.C., on this 9th day 70.0, in Atlantic City, New Jersey; and SUPPLEMENTARY INFORMATION: of January 1998. the Route 52 (Ninth Street) Bridge Regulatory History David M. Strauss, across Beach Thorofare at NJICW mile Executive Director, Pension Benefit Guaranty 80.4, in Ocean City, New Jersey. On July 16, 1997, the Coast Guard Corporation. Additionally, a new provision is added published in the Federal Register (62 FR 38043) a Notice of Proposed [FR Doc. 98–1063 Filed 1–14–98; 8:45 am] that restricts openings of the Route 30 Rulemaking (NPRM) entitled BILLING CODE 7708±01±P Bridge across Beach Thorofare at NJICW Drawbridge Operations Regulations; mile 67.2. The changes are being made New Jersey Intracoastal Waterway. The to ease vehicular traffic congestion DEPARTMENT OF TRANSPORTATION NPRM proposed changes in the caused by bridge openings in and operating schedules of a number of around seaside resort areas and to Coast Guard bridges. The changes are designed to reduce the need for these bridges to be ease vehicular traffic congestion caused 33 CFR Part 117 continually staffed by a drawtender by bridge openings in and around during off-peak periods when few seaside resort areas and to reduce the [CGD05±97±003] openings occur. need for these bridges to be continually RIN 2115±AE47 DATES: This final rule is effective on staffed by a drawtender during off-peak February 17, 1998. periods when few openings occur. The Drawbridge Operation Regulations; Coast Guard received 10 letters New Jersey Intracoastal Waterway ADDRESSES: Documents as indicated in commenting on various provisions of this preamble are available for AGENCY: Coast Guard, DOT. the NPRM. No public hearing was inspection or copying at the office of the requested and none was held. ACTION: Final rule. Commander (Aowb), Fifth Coast Guard Background and Purpose SUMMARY: The Coast Guard is changing District, Federal Building, 4th Floor, 431 the regulations governing several Crawford Street, Portsmouth, Virginia General bridges that cross the New Jersey 23704–5004, between 8 a.m. and 4:30 The NJICW extends approximately Intracoastal Waterway (NJICW). Those p.m., Monday through Friday, except 118 statute miles from Manasquan Inlet bridges are: the Route 35 Bridge across Federal holidays. The telephone number to Cape May Harbor. The NJICW is Manasquan River at NJICW mile 1.1, in is (757) 398–6222. primarily used by pleasure craft, Brielle, New Jersey; the S37 Bridge FOR FURTHER INFORMATION CONTACT: commercial, and sport fishing vessels. across Barnegat Bay at NJICW mile 14.1, General regulations governing the in Seaside Heights, New Jersey; the Ann Deaton, Bridge Administrator, Fifth operation of bridges are listed in US40–322 (Albany Avenue) Bridge Coast Guard District, (757) 398–6222. sections 117.1 through 117.49 of 33 across Inside Thorofare at NJICW mile CFR. Specific drawbridge regulations,

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The comments bridges crossing the NJICW in an effort The Coast Guard evaluated this stated that the schedule is unfair to the to balance the needs of mariners and proposal, but has decided not to change boating public and would be impractical vehicle drivers transiting into and the dates in the final rule. Bridge and potentially hazardous to boaters. around seaside resort areas. Bridge opening log data from 1993 to 1995 The Coast Guard considered the openings at peak traffic hours during the revealed that the highest concentration comments, but has decided not to tourist season often cause considerable of vessel and vehicular traffic occurred change the final rule. As stated in the congestion while accommodating during the period from May 15 to proposed rule, NJDOT records reveal a relatively few vessels. In support of its September 30. For that reason, the decrease in bridge openings from 11 request, NJDOT contends that there has NJDOT limited its request to change the p.m. to 8 a.m. in the yearly opening logs been an overall decrease in vessel traffic schedule to September 30. The Coast for 1993, 1994 and 1995. The bridge and an increase in vehicular traffic in Guard has no current justification for opened for vessels 243, 177, and 111 recent years. NJDOT believes that the changing the dates beyond September times during these years, respectively. regulations will help solve the vehicular 30; however, should vehicle traffic In light of these statistics, which traffic problem caused by the frequency become a concern for the NJDOT indicate minimal use of the bridge, the of bridge openings. The regulations beyond September 30, and the NJDOT Coast Guard believes that a four hour restricting openings will also allow can justify changing the dates, the Coast notice is reasonable. This regulation bridge owners to reduce bridge tender Guard would evaluate a future proposal merely requires mariners to plan ahead hours for certain bridges during off-peak to modify the regulation. to schedule the bridge opening at times periods when requests for openings Another comment suggested changing acceptable to them. One comment proposed adding infrequently occur. A special 24-hour the draw opening schedule on additional language to the regulation to telephone number will be posted on all Saturdays, Sundays, and Federal clarify that the draw should only open bridges in accordance with 33 CFR holidays to coincide with the draw if vessels are waiting. The rationale for 117.55 to arrange for openings during opening schedule on Mondays to the comment is that the bridge should off-peak periods and emergencies. Fridays in order to avoid confusion not open unnecessarily, i.e., at times between weekday and weekend The Coast Guard received 10 when no vessels are waiting. The Coast openings. The Coast Guard considered comments on the NPRM. No comments Guard considered the comment but has this comment and has changed the final addressed the proposed changes for the decided not to change the final rule. The Route 30 Bridge or the US40–322 rule to simplify the bridge opening regulation currently states that the draw Bridge. The changes in operating schedule. The opening schedule for the ‘‘need only open,’’ on the hour and half regulations for these bridges in this final weekend openings will be the same as hour. This language grants discretion to rule are unchanged from the NPRM. The for weekday openings, i.e., the draw bridge tenders to open the draw at the comments concerning the proposed will open 15 minutes before the hour prescribed times only when vessels are changes to the remaining bridges are and 15 minutes after the hour. waiting to pass. The language does not discussed below. The 15 minute before and after the require the bridge to open, as it would hour opening schedule on Mondays to Route 35 Bridge if the regulation stated that the draw Thursdays and on Fridays except ‘‘shall open’’ or ‘‘will open’’ at the During the summer of 1991, the Coast Federal holidays from 12 p.m. to 7 p.m. prescribed times. Guard implemented a temporary final was implemented to coincide with Another comment recommended that, rule, which changed the existing schedules of trains operated by the instead of opening the draw in half hour regulations governing the Route 35 Brielle Railroad Bridge at mile 0.9 periods, the draw should open on Bridge for 60 days from August 1 (Manasquan River), owned and operated signal, but no more than twice in any through September 29, 1991. The by New Jersey Transit Rail Operations hour. The comment suggested that in temporary final rule, published in the (NJTRO). The Route 35 Bridge is located the final analysis, the draw would open Federal Register at 56 FR 40418, approximately 200 feet upstream from the same number of times; i.e., twice in extended the hour and half hour the railroad bridge. Coordinating a one hour period. The Coast Guard has opening schedule on weekends and drawbridge openings of the Route 35 decided not to incorporate this holidays to between 9 a.m. and 10 p.m., and the Brielle Railroad Bridges will suggestion into the final rule. As and provided for only twice an hour minimize the number of times vessels written, the final rule provides a openings during the evening rush hours would be required to hold or maneuver consistent schedule, which allows from 4 p.m. to 7p.m. Monday through between the Route 35 and Brielle vehicle traffic and mariners to plan their Thursday and from 12 p.m. to 7 p.m. on Railroad Bridges while waiting for one trips accordingly. Fridays. of the bridges to open. The NPRM proposed to permanently During the summer boating season, S37 Bridge implement the temporary final the Brielle Railroad Bridge is normally The NPRM proposed to change the rulemaking schedule, except that an maintained in the open position and regulation for the S37 Bridge to allow additional hour was added to the times closed approximately five minutes the bridge to open on signal except from that the bridge opens on the hour and before the arrival of a passenger train. Memorial Day to Labor Day, from 8 a.m. half hour. The schedule will begin at 8 Trains typically cross the Brielle to 8 p.m., when the draw would only a.m. instead of 9 a.m. The NPRM also Railroad Bridge between 10 and 20 open on the hour and half hour. From proposed adding a four hour notice minutes past the hour. It is expected 1 April to 30 November, from 11 p.m. requirement for draw openings between that a consistent opening schedule will to 8 a.m., four hours advance notice 11 p.m. and 8 a.m. year-round. not only enhance the safety of vessels, would be required.

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The Coast Guard received several US40–322 Bridge Guard has decided to make a textual comments on the NPRM for the Route The NPRM proposed changes to the change to clarify the requirements and 37 Bridge. Many of the comments US40–322 Bridge schedule by amending to provide consistent language for all expressed opposition to the four hour section 117.733(f) and redesignating it NJICW bridges. Specifically, the change notice requirement, stating that the as paragraph (g). Paragraph (g) now clarifies the requirement governing absence of a full time bridge tender may states that the draw need only open those bridges where advance notice is cause a hazardous condition to vessels year-round from 11 p.m. to 7 a.m. and required for draw openings. The waiting, particularly during periods of November 1 through March 31 from 3 changes removes, throughout the flood tide. The Coast Guard considered p.m. to 11 p.m., if four hours advance regulation, the phrases stating that the the comments received, and after notice is given. From June 1 through draw shall open on signal if advance consulting with units that frequently September 30, from 9 a.m. to 4 p.m., and notice is given. As amended, the phrase patrol those waters, has decided not to from 6 p.m. to 9 p.m., the draw need will state that the draw need only open change the final rule. Those units only open on the hour and half hour. if at least the requisite number of hours reported that, in their experience, From June 1 through September 30, notice is given. routine conditions at the Route 37 from 4 p.m. to 6 p.m., the draw need not The NPRM proposed amending Bridge pose no greater hazard that any be opened. Section 117.733 by deleting surplus other NJICW Bridge. At most, the The Coast Guard received no language in paragraph (a)(1) to be schedule may create an inconvenience comments on these proposed changes consistent with the general operating to mariners. The schedule will only and they appear in this final rule as regulations under 33 CFR 117.5. That require vessel operators to plan transits proposed. provision already requires drawbridges in order to minimize delays while to open promptly and fully for the waiting for the bridge opening. Vessels Route 52 Bridge passage of vessels when a request to required to wait for openings can also The NPRM proposed changes in the open is given. The final rule removes make arrangements to wait in nearby regulations governing the Route 52 the applicable language from paragraph marinas or anchor in designated bay (Ninth Street) Bridge to require it to (a)(1). anchorages. NJDOT records for 1993, open on signal except that from The final rule amends section 117.733 1994 and 1995 also showed a minimal Memorial Day to Labor Day from 8 a.m. (b), (c), (d), and (h) by deleting the demand for bridge openings during the to 8 p.m., the draw need only open on phrase stating that public vessels, period April 1 to November 30, from 11 the hour and half-hour. The NJDOT vessels in distress, or vessels in tow may p.m. to 8 a.m. During those periods, the contended that because vessel traffic pass without delay. This requirement is bridge opened for vessels 151, 67, and through the bridge has decreased, currently published in 33 CFR 117.31 82 times, respectively. In light of these limiting openings to the hour and half and is no longer required to be statistics, the Coast Guard believes that hour to include the weekdays would published in each specific bridge the four hour notice requirement to have enhance vehicular traffic without regulation. a bridge tender on scene is reasonable. significantly affecting vessel traffic. The Coast Guard has revised 33 CFR Another comment suggested that The Coast Guard received two 117.733 to include specific regulations traffic congestion could be further comments on the NPRM for the Route governing the Stone Harbor Boulevard alleviated by requiring bridges to open 52 Bridge. The comments suggested that Bridge across Great Channel, at mile only on the hour rather than on the hour expanding the weekend and holiday 102.0 in paragraph (j), and paragraph (i), and half hour. The Coast Guard schedule throughout the week would be which governs the Route 52 Bridge. considered this comment, but has not detrimental to the local boating The Coast Guard removed the former changed the final rule. The opening industry. The comments expressed regulation in 33 CFR 117.733 paragraph schedule is designed to balance the concern that the bridge schedule would (j), governing the Cape May County competing needs of vehicular and vessel require boaters to leave their docks in Bridge Commission Bridge, at mile traffic. The Coast Guard believes that time to pass through the bridge and thus 104.0 between Stone Harbor and two bridge openings per hour achieve increase the chances of leaving behind Nummy Island by codifying this the desired balance. However, the Coast late passengers for whom they might paragraph at 33 CFR 117.720. The Cape Guard would consider future proposals otherwise wait. The Coast Guard May County Bridge Commission Bridge to modify the bridge opening schedule considered the comments, but has not spans Great Channel, at mile 0.7, a if requested by NJDOT. changed the final rule. The final rule tributary to the NJICW. It had been merely expands the schedule that Route 30 Bridge incorrectly placed in 33 CFR 117.733 already occurs on weekends and among NJICW bridges. The NPRM proposed changes in the holidays from Memorial Day to Labor regulation for the Route 30 Bridge to Day from 8 a.m. to 8 p.m., and does not The Coast Guard received no require the bridge to open on signal prevent mariners from transiting comments for the Cape May County except from 11 p.m. to 7 a.m. year- through the bridge. The final rule Bridge Commission Bridge. The Coast round, and from 3 p.m. to 11 p.m. from merely requires mariners to schedule Guard believes, however, that the November 1 through March 31, when their trips accordingly, as they have wording in the proposed paragraph is four hours advance notice would be already had to do on weekends and unnecessarily confusing, and therefore required. The changes were proposed to holidays, factoring in any buffers has added language to paragraphs (a) relieve NJDOT of the burden of ensuring needed to accommodate late passengers. and (b) to more clearly state that the that bridge tenders are continuously draw need only open if at least four present during periods when openings General Requirements hours advance notice is given. are infrequent. The Coast Guard received no Finally, the final rule revises 33 CFR The Coast Guard received no comments on the general proposals. 117.733 by redesignating former comments on these proposed changes Therefore, the general proposals are paragraph (g), governing the Dorset and they appear in this final rule as being implemented without change. Avenue Bridge across Inside Thorofare, proposed. After further review, however, the Coast mile 71.2. as paragraph (h).

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Regulatory Evaluation FR 38654, 29 July 1994), this final rule Heights, shall open on signal except as This final rule is not a significant is categorically excluded from further follows: regulatory action under section 3(f) of environmental documentation. A (1) From December 1 through March Executive Order 12866 and does not Categorical Exclusion Determination 31 from 11 p.m. to 8 a.m., the draw need require an assessment of potential costs statement has been prepared and placed not be opened. and benefits under section 6(a)(3) of that in the rulemaking docket. (2) From April 1 through November order. It has been exempted from review List of Subjects in 33 CFR Part 117 30 from 11 p.m. to 8 a.m., the draw need by the Office of Management and only open if at least four hours notice Budget under that order. It is not Bridges. is given. significant under the regulatory policies Regulations (3) From Memorial Day through Labor and procedures of the Department of For the reasons discussed in the Day from 8 a.m. to 8 p.m., the draw Transportation (DOT) (44 FR 11040; need only open on the hour and half February 26, 1979). The Coast Guard preamble, the Coast Guard amends 33 CFR Part 117 as follows: hour. expects the economic impact of this rule (e) The draw of the AMTRAK New to be so minimal that a full Regulatory PART 117ÐDRAWBRIDGE Jersey Transit Rail Operations (NJTRO) Evaluation, under paragraph 10e of the OPERATION REGULATIONS automated railroad swing bridge across regulatory policies and procedures of Beach Thorofare, mile 68.9 at Atlantic DOT is unnecessary. The Coast Guard 1. The authority citation for part 117 City shall operate as follows: reached this conclusion based on the continues to read as follows: (1) Open on signal from 11 p.m. to 6 fact that the changes and actions Authority: 33 U.S.C. 499; 49 CFR 1.46; 33 a.m. From 6 a.m. to 11 p.m., the draw instituted by this rule will not prevent CFR 1.05–1(g); section 117.255 also issued shall open on signal from 20 minutes to mariners from transiting the bridges. under the authority of Pub. L. 102–587, 106 30 minutes after each hour and remain The final rule merely requires mariners Stat. 5039. open for all waiting vessels. to plan to be in position to take 2. Section 117.733 is revised to read advantage of scheduled bridge openings (2) Opening of the draw span may be as follows: and to timely contact bridges tenders delayed for ten minutes except as controlling bridges that require advance § 117.733 New Jersey Intracoastal provided in § 117.31(b). However, if a notification. Waterway. train is moving toward the bridge and has crossed the home signal for the (a) The following requirement applies Small Entities bridge before the signal requesting to all bridges listed in this section: The opening of the bridge is given, that train Under the Regulatory Flexibility Act owners of these bridges shall provide, may continue across the bridge and (5 U.S.C. 601 et seq.), the Coast Guard and keep in good legible condition, must clear the bridge interlocks before must consider whether this rule will clearance gauges with figures not less stopping. have a significant economic impact on than twelve (12) inches high designed, a substantial number of small entities. installed and maintained according to (3) When the bridge is not tended ‘‘Small entities’’ include independently the provisions of § 118.160 of this locally and/or is operated from a remote owned and operated small businesses chapter. location, sufficient closed circuit TV that are not dominant in their field and (b) The draw of the Route 35 Bridge, cameras shall be operated and that otherwise qualify as ‘‘small mile 1.1 across Manasquan River at maintained at the bridge site to enable business concerns’’ under section 3 of Brielle, shall open on signal except as the remotely located bridge/train the Small Business Act (15 U.S.C. 632). follows: controller to have full view of both river Because it expects the impact of this (1) From May 15 through September traffic and the bridge. rule to be minimal, the Coast Guard 30: (4) Radiotelephone Channel 13 certifies under 5 U.S.C. 605(b) that this (i) On Saturdays, Sundays and (156.65 MHz) VHF–FM, shall be final rule will not have a significant Federal holidays, from 8 a.m. to 10 p.m., maintained and utilized to facilitate economic impact on a substantial the draw need only open 15 minutes communication in both remote and number of small entities. before the hour and 15 minutes after the local control locations. The bridge shall Collection of Information hour. also be equipped with directional (ii) On Mondays to Thursdays from 4 microphones and horns to receive and This final rule does not provide for a deliver signals to vessels within a mile collection of information requirement p.m. to 7 p.m., and on Fridays, except Federal holidays from 12 p.m. to 7 p.m., that are not equipped with under the Paperwork Reduction Act (44 radiotelephones. U.S.C. 3501 et seq.). the draw need only open 15 minutes before the hour and 15 minutes after the (5) Whenever the remote control Federalism hour. system equipment is partially disabled The Coast Guard has analyzed this (2) Year-round from 11 p.m. to 8 a.m., or fails for any reason, the bridge shall rule under the principles and criteria the draw need only open if at least four be physically tended and operated by contained in Executive Order 12612 and hours notice is given. local control. Personnel shall be has determined that this rule will not (c) The draw of the County Route 528 dispatched to arrive at the bridge as have sufficient federalism implications Bridge, mile 6.3 across Barnegat Bay at soon as possible, but not more that one to warrant preparation of a Federalism Mantoloking, shall open on signal; hour after malfunction or disability of Assessment. except that from Memorial Day through the remote system. Mechanical bypass Labor Day on Saturdays, Sundays and and override capability of the remote Environment Federal holidays from 9 a.m. to 6 p.m., operation system shall be provided and The Coast Guard considered the the draw need only open on the hour, maintained. environmental impact of this rule and twenty minutes after the hour, and forty (6) When the draw is opening and concluded that under section minutes after the hour. closing, or is closed, yellow flashing 2.B.2.e.(32)(e) of Commandant (d) The draw of the S37 Bridge across lights located on the ends of the center Instruction M16475.1B (as amended, 59 Barnegat Bay, mile 14.1 at Seaside piers shall be displayed continuously

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Roger Rufe Jr., which OMB approval has been (f) The draw of the Route 30 Bridge Vice Admiral, U.S. Coast Guard Commander obtained; corrects errors and omissions across Beach Thorofare, mile 67.2 at Fifth Coast Guard District. in the text of the final regulations; Atlantic City, shall open on signal [FR Doc. 98–1070 Filed 1–14–98; 8:45 am] makes changes in certain provisions to except that, year-round from 11 p.m. to BILLING CODE 4910±14±M make them easier to read; adds and 7 a.m. and, from November 1 through corrects cross references to other related March 31 from 3 p.m. to 11 p.m., the sections of the Head Start regulations, draw need only open if an least four DEPARTMENT OF HEALTH AND and makes one change required by the hours notice is given. HUMAN SERVICES Head Start Act. (g) The draw of the US40–322 (Albany The Office of Management and Budget Avenue) Bridge, mile 70.0 across Inside Administration for Children and (OMB) approved the information and Thorofare, at Atlantic City, shall open Families collection requirements in 45 CFR on signal except that: sections 1301.31(b) on personnel (1) Year-round, from 11 p.m. to 7 a.m.; 45 CFR Parts 1301, 1304, 1305 and policies; 1304.20 (a), (c), and (d) on and from November 1 through March 31 1306 child health and developmental from 3 p.m. to 11 p.m., the draw need services; 1304.22(c) on child health and only open if at least four hours notice Head Start Program safety; 1304.23(a) on child nutrition; is given; AGENCY: Administration on Children, 1304.40(a) on family partnerships; (2) From June 1 through September Youth and Families Administration for 1304.41(a) on community partnerships; 30: Children and Families, HHS. 1304.50 (f), (g), and (h) on program (i) From 9 a.m. to 4 p.m. and from 6 governance; 1304.51 (a) and (i) on ACTION: Technical and correcting p.m. to 9 p.m. the draw need only open management systems and procedures; amendments. on the hour and half hour; and 1304.52(j) on human resources (ii) From 4 p.m. to 6 p.m. the draw SUMMARY: This document contains management; and 1304.60(b) and (c) on need not open. technical and correcting amendments to deficiencies and quality improvement (h) The draw of the Dorset Avenue the Head Start Program final rule plans. This Notice adds the newly Bridge across Inside Thorofare, mile published on November 5, 1996 (61 FR assigned OMB Control number 0970– 72.1 at Ventnor City, shall open on 57186). The final rule implements the 0148 for these sections as required by signal except that from June 1 through statutory provisions for establishing OMB. The expiration date for the September 30, from 9:15 a.m. to 9:15 Program Performance Standards for approval is December 31, 1999. In the p.m., the draw need only open at 15 and Early Head Start grantees and Head Start case of 45 CFR 1305.3 (b) and (d), a 45 minutes after the hour. Grantee and delegate agencies providing technical edit is made in the (i) The draw of the Route 52 (Ninth services to eligible children from birth parenthetical statement at the end of the Street) Bridge, mile 80.4 across Beach to five years and their families as well section on the OMB Control Number. Thorofare, at Ocean City, shall open on as pregnant women and for taking Changes have been made to citations in signal except that from Memorial Day corrective actions when Early Head several places in Appendix A. through Labor Day from 8 a.m. to 8 p.m., Start or Head Start agencies fail to meet Changes are made in the text in 45 the draw need only open on the hour such standards. These technical and CFR § 1304.20(b), § 1304.20(f)(1), and half hour. correcting amendments add the Office § 1304.41(b), § 1304.50(b)(3), 1304.52(j)(1) and § 1306.30(c) to make (j) The draw of the Stone Harbor of Management and Budget (OMB) the provisions easier to understand Boulevard Bridge, mile 102.0 across Control Number to sections containing without changing their requirements. Great Channel, at Stone Harbor, shall information collection requirements for There are also corrections to open on signal except that: which OMB approval has been obtained typographical errors in Appendix A, (1) From October 1 through March 31 and make other necessary corrections. from 10 p.m. to 6 a.m. the draw need Paragraph (b), II General Procedures, DATES: Effective on January 15, 1998. only open if at least eight hours notice and Paragraphs (c) and (e), III Human FOR FURTHER INFORMATION CONTACT: is given. E. Resources Management. The references (2) From Memorial Day through Labor Dollie Wolverton, Head Start Bureau, to ‘‘delegate agencies’’ are being deleted Day from 6 a.m. to 6 p.m. on Saturdays, 202–205–8418 (not a toll free call); from 45 CFR 1305.3 because these Sundays and Federal holidays, the draw SUPPLEMENTARY INFORMATION: references were included in the final need open only on the hour, 20 minutes regulations as the result of I. Background after the hour, and 20 minutes before typographical errors. Paragraph (ix) is the hour. The final rule on Head Start being deleted from 45 CFR 3. Section 117.720 is added to read as Performance Standards was published 1304.50(d)(1). The provision, which follows: on November 5, 1996 (61 FR 57186), in requires that members of the Policy the Federal Register. The purpose of the Councils and Policy Committees § 117.720 Great Channel. final rule, the first wide ranging revision approve the Head Start Program’s The draw of the Cape May County of the performance standards in over 20 annual audit, was included in the final Bridge Commission bridge, mile 0.7, years, is to implement the 1994 regulation through an error. The between Stone Harbor and Nummy amendments to the Head Start Act deletion of this provision necessitates Island, shall open on signal except that: which require an update to the Head changes to the numbering of 45 CFR (a) From May 15 through October 15 Start Program Performance Standards. 1304.50(d)(1) (x)–(xiii) and references to from 10 p.m. to 6 a.m., the draw need those provisions in Appendix A. only open if at least four hours advance II. Need for Technical and Correcting This notice also includes changes to notice is given. Amendments to 45 CFR Parts 1301, several of the cross-references in the (b) From October 16 through May 14, 1304, 1305, and 1306 regulations which have been provided the draw need only open if at least 24 This document adds the OMB Control to assist grantees and others in using the hours advance notice is given. number to the sections containing document and which do not affect the

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2313 requirements of the regulations. The 45 CFR Part 1306 D. In paragraph (c)(4), after the words phrase ‘‘Head Start parents’’ was Education of disadvantaged, Grant ‘‘Individualized Education Program’’ omitted from 45 CFR 1304.41(b) and is programs/social programs, Individuals add the parenthetical letters ‘‘(IEP)’’; being inserted to comply with Section with disabilities. E. In paragraph (f)(1) add the words 641A(a)(3)(C)(ii) of the Head Start Act ‘‘screening for’’ before the word (42 U.S.C. 9836A). The parenthetical (Catalog of Federal Domestic Assistance ‘‘developmental’’ and remove the word phrase (‘‘this regulation is binding on Program Number 93.600, Project Head Start) ‘‘screening’’ after the word ‘‘behavioral’’ Policy Councils exclusively’’) is being Dated: January 7, 1998. and add the word ‘‘concerns’’ in its removed from § 1304.51(d)(1)(iii) Neil J. Stillman, place; and because it may be misunderstood. The Deputy Assistant Secretary for Information F. Add the Office of Management and statement in the parenthetical applies to and Resource Management. Budget Control Number in a the cross reference cited in the Accordingly, 45 CFR Parts 1301, 1304, parenthetical sentence at the end to read provision as a whole. 1305, and 1306 of the Head Start final as follows: Grantees that already have taken steps rule are corrected by making the to comply with 45 CFR 1304.41(b), will following technical and correcting § 1304.20 Child health and developmental services. be given an opportunity to take any amendments: necessary corrective action before being * * * * * sanctioned as provided by the Head PART 1301ÐHEAD START GRANTS (The information and collection Start Act. ADMINISTRATION requirements are approved by the Office of Management and Budget (OMB) Waiver of Notice and Comment 1. The authority citation for Part 1301 under OMB Control Number 0970–0148 Procedures continues to read as follows: for paragraphs (a), (c) and (d).) Authority: 42 U.S.C. 9801 et seq. The Administrative Procedure Act (5 § 1304.21 [Corrected] U.S.C. 553(b)(B)) requires that a notice 2. In § 1301.31, revise the 5. In § 1304.21(b)(1), within the of proposed rulemaking be published parenthetical sentence at the end of the parenthetical phrase at the end which unless the Department finds, for good section to read as follows: cause, that such notice and opportunity reads ‘‘(see 45 CFR 1304.3(a)(5))’’, add for public comment is impracticable, § 1301.31 Personnel policies. the words ‘‘for a definition of unnecessary, or contrary to the public * * * * * curriculum’’ after the number ‘‘(5)’’. In interest. In this instance, the rule in (The information collection paragraph (b)(1)(i) of this section in the question effects technical changes, requirements are approved by the Office phrase at the end which reads ‘‘See 45 corrections to and deletion of text not of Management and Budget (OMB) CFR 1304.52(g)(4)’’, remove the number properly included in the regulations and under OMB Control Number 0970–0148 ‘‘(4)’’ and replace it with ‘‘(2)’’. a change necessary to comply with for paragraph (b).) 6. In § 1304.22, add the OMB Control provisions of the Head Start Act. Number in a parenthetical sentence at Accordingly, the Department has PART 1304ÐPROGRAM the end of the section to read as follows: PERFORMANCE STANDARDS FOR determined that it would be § 1304.22 Child health and safety. unnecessary to use notice and comment THE OPERATION OF HEAD START * * * * * procedures in issuing these PROGRAMS BY GRANTEE AND (The information collection amendments. DELEGATE AGENCIES requirements are approved by the Office Impact Analysis 3. The authority citation for Part 1304 of Management and Budget (OMB) continues to read as follows: No Impact Analysis is needed for the under OMB Control Number 0970–0148 technical amendments. The impact of Authority: 42 U.S.C. 9801 et seq. for paragraph (c).) 7. In § 1304.23, add the OMB Control the necessary corrections falls within § 1304.20 [Corrected] the analysis of the Performance Number in a parenthetical sentence at 4. In § 1304.20: the end of the section to read as follows: Standards published in the Federal A. In the heading of paragraph (b): Register on November 5, 1996 (61 FR (1) Remove the word ‘‘screening’’ and § 1304.23 Child nutrition. 57186 and 57209). add in its place ‘‘concerns’’; and * * * * * List of Subjects (2) Add the words ‘‘screening for’’ (The information collection before the word ‘‘developmental’’; requirements are approved by the Office 45 CFR Part 1301 B. In the first sentence of paragraph of Management and Budget (OMB) Administrative practice and (b)(1): under OMB Control Number 0970–0148 procedure, Education of disadvantaged, (1) Add the words ‘‘screening for paragraph (a).) Grant programs/social programs, procedures to identify concerns Selection of grantees. regarding a child’s’’ after the word § 1304.40 [Corrected] ‘‘appropriate’’; 8. In § 1304.40(a) (2) and (3) remove 45 CFR Part 1304 (2) Add in parentheses ‘‘(visual and the capital letters from ‘‘Family Dental health, Education of auditory),’’ after the word ‘‘sensory’’; Partnership Agreements’’ and disadvantaged, Grant programs/social (3) Remove the word ‘‘and’’ before the ‘‘Agreement’’ and in their place add the programs, Health care, Mental health word ‘‘behavioral’’ and add a comma lower case. At the end of paragraph programs, Nutrition, Reporting and after ‘‘behavioral’’, and remove the (i)(4) of this section, add in parentheses recordkeeping requirements. words ‘‘screenings of’’ after the word ‘‘(See 45 CFR 1306.33 regarding the ‘‘behavioral’’; home-based program option.)’’. Add the 45 CFR Part 1305 C. In the second sentence of Office of Management and Budget Education of disadvantaged, Grant paragraph (b)(1) remove the word Control Number in a parenthetical programs/social programs, Individuals ‘‘screenings’’ and add the words sentence at the end of the section to with disabilities. ‘‘screening procedures’’. read as follows:

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§ 1304.40 Family partnerships. B. In paragraph (b) under II. General of Management and Budget (OMB) * * * * * Procedures, in the Grantee Agency/ under OMB Control Number 0970–0148 (The information and collection Policy Council column, remove the ‘‘C’’ for paragraph (j).) requirements are approved by the Office and add in its place ‘‘—’’ to show the 14. In § 1304.60 add the Office of of Management and Budget (OMB) space is now blank and on the same line Management and Budget Control under OMB Control Number 0970–0148 in the Delegate Agency/Policy Number in a parenthetical sentence at for paragraph (a). Committee column remove the letter the end of the section to read as follows: ‘‘C’’ and add in its place ‘‘—’’ to show § 1304.41 [Corrected] the space is now blank. § 1304.60 Deficiencies and quality improvement plans. 9. In § 1304.41(b), after the word C. Under II. General Procedures, in ‘‘includes’’ add the words ‘‘Head Start paragraph (g), at the beginning, remove * * * * * parents,’’. In this same paragraph add a ‘‘1304.50(d)(1)(ix)’’. (The information and collection comma after the word ‘‘professionals’’ D. Under III, Human Resources requirements are approved by the Office and add the word ‘‘other’’ before the Management: of Management and Budget (OMB) word ‘‘volunteers’’. Add the Office of (1) In paragraph (a) remove under OMB Control Number 0970–0148 Management and Budget Control ‘‘1304.50(d)(1)(x)’’ and add in its place for paragraphs (b) and (c).) Number in a parenthetical sentence at ‘‘1304.50(d)(1)(ix)’’. the end of the section to read as follows: (2) In paragraph (b) remove PART 1305ÐELIGIBILITY, ‘‘1304.50(d)(1)(xi)’’ and add in its place RECRUITMENT, SELECTION, § 1304.41 Community partnerships. ‘‘1304.50(d)(1)(x)’’. ENROLLMENT AND ATTENDANCE IN * * * * * (3) In paragraph (c) remove HEAD START (The information collection ‘‘1304.50(d)(1)(xii)’’ and add in its place 15. The authority citation for Part requirements are approved by the Office ‘‘1304.50(d)(1)(xi)’’, and in the column 1305 continues to read as follows: of Management and Budget (OMB) on Grantee Agency/Governing body under OMB Control Number 0970–0148 remove ‘‘C’’ and add in its place ‘‘A’’. Authority: 42 U.S.C. 9801 et seq. for paragraph (a).) (4) In paragraph (d) remove ‘‘1304.50(d)(1)(xi)’’ and add in its place § 1305.3 [Corrected] § 1304.50 [Corrected] ‘‘1304.50(d)(1)(x).’’ 16. In § 1305.3(b) remove the words 10. In § 1304.50(b)(3), after the words (5) In paragraph (e), remove ‘‘and delegate agency’’ and ‘‘or ‘‘low-income children and families’’ ‘‘1304.50(d)(1)(xii)’’ and add in its place delegate’s’’. In paragraph (d) of this remove the period and add a comma in ‘‘1304.50(d)(1)(xi)’’, and under the section remove ‘‘or delegate agency’’. its place, remove ‘‘Community Delegate Agency/Governing body Revise the Office of Management and representatives may’’, and remove column, remove the ‘‘C’’ and add in its Budget Control Number parenthetical ‘‘include’’ and add ‘‘including, for place ‘‘A’’. sentence at the end of the section to example,’’ in its place. In paragraph read as follows: § 1304.51 [Corrected] (d)(1)(iii) at the end, remove the phrase 12. At the end of § 1304.51(a)(1)(iii), § 1305.3. Determining community ‘‘(this regulation is binding on Policy strengths and needs. Councils exclusively)’’. Remove add the sentence ‘‘See the requirements paragraph (d)(1)(ix) of this section and of 45 CFR parts 1305, 1306, and 1308.’’. * * * * * redesignate paragraphs (d)(1)(x) through Add the Office of Management and (The information collection (d)(1)(xii) as paragraphs (d)(1)(ix) Budget Control Number in a requirements are approved by the Office through (d)(1)(xi), respectively. In parenthetical sentence at the end of the of Management and Budget (OMB) paragraph (e)(3), remove the words section to read as follows: under OMB Control Number 0970–0124 for paragraphs (b) and (d).) ‘‘Governing Board’’ and in its place add § 1304.51 Management systems and ‘‘governing body’’. Add the Office of procedures. PART 1306ÐHEAD START STAFFING Management and Budget Control * * * * * REQUIREMENTS AND PROGRAM Number in a parenthetical sentence at (The information and collection OPTIONS the end of the section to read as follows: requirements are approved by the Office § 1304.50 Program governance. of Management and Budget (OMB) 17. The authority citation for Part 1306 continues to read as follows: * * * * * under OMB Control Number 0970–0148 for paragraphs (a) and (i).) (The information and collection Authority: 42 U.S.C. 9801 et seq. requirements are approved by the Office § 1304.52 [Corrected] § 1306.30 [Corrected] of Management and Budget (OMB) 13. In § 1304.52(j)(1) add a set of 18. In § 1306.30(c) in the second under OMB Control Number 0970–0148 parentheses around the words ‘‘that for paragraphs (f), (g), and (h).) sentence, remove the comma before the includes screening for tuberculosis’’. words ‘‘at a minimum’’, remove the Appendix A—[Corrected] Add the Office of Management and words ‘‘at a minimum,’’, remove the Budget Control Number in a word ‘‘the’’ before the word ‘‘safety’’, 11. In Appendix A, make corrections parenthetical sentence at the end of the as follows: add the words ‘‘health and’’ before the section to read as follows: word ‘‘safety’’, and remove the words A. Under I. Planning, the ‘‘Function’’ ‘‘of facilities’’ and add the word ‘‘as’’ in column, remove the sentence at the end § 1304.52 Human resources management. its place. of paragraph (a) which reads ‘‘(this * * * * * regulation is binding on Policy Councils (The information and collection [FR Doc. 98–961 Filed 1–14–98; 8:45 am] exclusively.)’’. requirements are approved by the Office BILLING CODE 4184±01±P

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FEDERAL COMMUNICATIONS the Commission’s regulations and determines that with regard to particular COMMISSION eliminate unnecessary rules wherever matters the adoption of service-specific possible, increase the efficiency of the rules is warranted. As the Commission 47 CFR Parts 1, 21, 24, 26, 27, 90 and competitive bidding process, and indicated in the Notice, the Commission 95 provide more specific guidance to has gained significant experience in the [WT Docket No. 97±82, ET Docket No. 94± auction participants. The changes also course of the 15 auctions conducted to 32; FCC 97±413] advance the Commission’s auction date. In particular, the Commission has program by reducing the burden on the found that much of the auction process Competitive Bidding Proceeding Commission and the public of can be standardized and that adopting conducting service-by-service auction service-specific rules for many aspects AGENCY: Federal Communications rule makings. In the Competitive Commission. of the competitive bidding process is Bidding Second Report and Order in PP both unnecessary and confusing. The ACTION: Final rule. Docket No. 93–253, the Commission Commission also finds that conducting stated that we would ‘‘issue further SUMMARY: separate rule makings for each In this Third Report and Reports and Orders * * * to adopt Order, the Commission adopts uniform individual service often slows the auction rules for each auctionable delivery of service to the public because competitive bidding rules for all future service or class of service,’’ and we it results in regulatory delays before the auctions. The Commission believes that identified criteria that would govern our licensing process begins. The majority these rule changes will simplify and choice of service-specific auction rules of commenters addressing this issue streamline its regulations in order to and procedures, which may be found in increase the overall efficiency of the subpart Q of part 1 of our rules. agree, emphasizing that the adoption of competitive bidding process. These rule Implementation of Section 309(j) of the uniform auction procedures will (1) changes are necessary to further the Communications Act—Competitive shorten the rule making process for Commission’s goals of simplifying and Bidding, PP Docket No. 93–253, Second future auctions by narrowing the issues streamlining its regulations, and to Report and Order, 59 FR 22980 (May 4, on which the Commission must seek develop uniform auction rules and 1994) (‘‘Competitive Bidding Second comment in service-specific rule procedures for all future auctions. The Report and Order’’), on recon., Second makings; (2) decrease uncertainty for intended effect of this action is to adopt Memorandum Opinion and Order, 59 auction participants; (3) benefit small uniform final rules and procedures FR 44272 (August 26, 1994) businesses because uniform rules are applicable to the Commission’s (‘‘Competitive Bidding Second more easily understood and complied spectrum auction program. Memorandum Opinion and Order’’). with, particularly by those with limited EFFECTIVE DATE: March 16, 1998. These rule changes result from the resources and those that participate in FOR FURTHER INFORMATION CONTACT: Josh Commission’s proposals in Amendment different auctions; and (4) enable the Roland or Mark Bollinger, Auctions and of Part 1 of the Commission’s Rules— Commission to develop a consistent Industry Analysis Division, Wireless Competitive Bidding Proceeding, Order, body of law and precedent governing Telecommunications Bureau, at (202) Memorandum Opinion and Order, and the auction process. 418–0660. Notice of Proposed Rule Making, WT 4. The Balanced Budget Act of 1997, SUPPLEMENTARY INFORMATION: This is a Docket No. 97–82, 62 FR 13570 (March Pub. L. 105–33, 111 Stat. 251 (1997), to summary of the Third Report and Order 21, 1997) (‘‘Notice’’). be codified in relevant part at 47 U.S.C. in WT Docket No. 97–82, ET Docket No. 2. The Commission also released a 309(j)(2)(E) and 309(j)(4)(F) (‘‘Balanced 94–32, adopted on December 18, 1997 Second Further Notice of Proposed Rule Budget Act’’), expands the and released on December 31, 1997. The Making in this Docket, in which it Commission’s auction authority. Section complete Third Report and Order is sought comment on additional changes 309(j)(2) formerly stated that mutually to its general competitive bidding rules. available for inspection and copying exclusive applications for initial The Second Further Notice of Proposed during normal business hours in the licenses or construction permits were Rule Making was published in the FCC Reference Center, Room 239, 1919 auctionable if the principal use of the Federal Register on January 7, 1998. See M Street, NW., Washington, DC 20554. spectrum was for subscription-based Amendment of Part 1 of the The complete text may be purchased services and competitive bidding would Commission’s Rules—Competitive from the Commission’s copy contractor, Bidding Procedures, Allocation of promote the expressed objectives. As International Transcription Service, Spectrum Below 5 GHz Transferred amended, Section 309(j)(2) provides Inc., 1231 20th Street, N.W., from Federal Government Use, 4660– that, in cases of mutually exclusive Washington, D.C. 20036, (202) 857– 4685 MHz, Second Further Notice of applications, all spectrum is auctionable 3800. The complete Third Report and Proposed Rule Making, WT Docket No. except licenses or construction permits Order also is available on the 97–82, ET Docket No. 94–32 (rel. for (1) public safety services; (2) digital Commission’s Internet home page January 7, 1998) (‘‘Second Further television service given to existing (http://www.fcc.gov). Notice of Proposed Rule Making’’). broadcasters to replace their analog SUMMARY OF ACTION: license; and (3) non-commercial II. Applicability of General Competitive educational or public broadcast stations. I. Background Bidding Rules In addition, the Balanced Budget Act 1. On December 18, 1997, the Federal 3. With some exceptions, the authorizes the Commission to assign Communications Commission Commission adopts its proposal in the pending broadcast license applications (Commission) adopted a Third Report Notice to apply the general competitive filed before July 1, 1997 by means of and Order making substantive bidding rules adopted herein to all competitive bidding pursuant to Section amendments and modifications to its future auctions, regardless of whether 309(j). Because these legislative changes general competitive bidding rules for all service-specific auction rules have significantly increase the number of auctionable services. These changes to previously been adopted. The Part 1 services that will be licensed by the Commission’s general competitive rules will apply to all auctionable competitive bidding, we believe that bidding rules are intended to streamline services, unless the Commission adopting uniform competitive bidding

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The Commission previously and WWC suggest that when service- safety services provided using Part 90 adopted service-specific auction rules specific rules have been adopted after spectrum, auctioning such spectrum is for the auction of these services, and industry participation and based upon not in the public interest. AICC and believes that this decision is in the best particular characteristics of a specific AAA further suggest that those interest of prospective applicants for industry or spectrum to be auctioned, commenters who favor the adoption of these auctions, who may have relied those service-specific rules should general competitive bidding procedures upon the service-specific rules govern. for all spectrum might not have previously adopted by the Commission 7. With regard to the auction of considered the possibility of auctions in formulating business plans and licenses to provide paging services, for shared channels, since the making early efforts to obtain financing. AirTouch opposes the Commission’s Commission is not currently authorized As discussed below, however, the proposal to apply general auction rules to award licenses for such spectrum by Commission retains the discretion to to all future auctions, regardless of means of competitive bidding. The use the revised general competitive whether service specific rules have been Commission agrees that shared bidding procedures adopted in this adopted. AirTouch argues in particular spectrum is, by definition, not proceeding for any reauction of licenses that the Commission should not adopt auctionable under Section 309(j) due to in these services. The Commission also a general stopping rule for the paging the lack of mutual exclusivity. notes that while service-specific rules auction which would be contrary to the 10. Similarly, Hughes suggests that in exist for the auction of the 220 MHz comments received in that proceeding the event the Commission decides to service, many of these rules are similar, and the stopping rule that the auction satellite services, it should or refer to the Part 1 rules. To apply the Commission ultimately adopted. As conduct a service-specific rule making existing rules for the most part is also discussed above, the Commission will specially tailored to the capital strongly supported by those commenters use previously-adopted, service-specific intensive nature of the satellite industry, addressing the issue. For example, rules for the paging auction. instead of employing the general AMTA states that the 220 MHz industry 8. The rule changes the Commission competitive bidding procedures adopted has encountered extraordinary delays in adopts today streamline and simplify its in this proceeding. Although the achieving regulatory certainty, and that general competitive bidding procedures. Commission does not decide that issue amending or altering the auction rules The majority of the rules the now, as the Commission suggested in for this service would create further Commission adopts today address the Notice, the Commission will uncertainty. Consistent with the aspects of the Commission’s spectrum continue to adopt service-specific Commission’s discussion below, the auction program that affect future auction procedures where it finds that Commission’s decision regarding the auction applicants only. These rules its general competitive bidding establishment of minimum opening bids include application procedures (e.g., procedures are inappropriate. will apply to the initial auction of electronic filing, short-form application III. Rules Governing Designated Entities licenses in the paging and 220 MHz amendments, ownership disclosure services. In addition, the Commission requirements), upfront and down 11. Section 309(j)(4)(D) of the notes that several petitions for payment issues, issues relating to Communications Act of 1934 provides reconsideration are pending in these competitive bidding design, procedure that in prescribing rules for a proceedings. In resolving these and timing (e.g., alternate bidding competitive bidding system, the petitions, the Commission will address methodologies, minimum opening bids, Commission shall ‘‘ensure that small installment payment financing for and bid withdrawal), and rules businesses, rural telephone companies, licenses in these services in a manner prohibiting collusion during the and businesses owned by members of consistent with our decision herein to auction. However, some of the minority groups and women are given temporarily suspend the use of provisions the Commission adopts the opportunity to participate in the installment payments. today address aspects of its rules that provision of spectrum-based services.’’ 6. Many of the commenters who govern current licensees as well. 47 U.S.C. 309(j)(4)(D). The statute support the Commission’s proposal to Specifically, these minor rule changes further directs the Commission to adopt general competitive bidding affect certain license-related payment consider the use of tax certificates, procedures for all auctionable services terms (e.g., installment payments, grace bidding preferences, alternative argue that the Commission should, in its periods, and unjust enrichment). payment schedules and methods of discretion, adopt or retain service- 9. Two commenters, AICC and AAA, calculations and other procedures as specific rules in particular instances. argue that the general competitive means of accomplishing this statutory Airadigm argues that the Commission bidding procedures adopted in this objective. See 47 U.S.C. 309(j)(3)(B) and should use existing service-specific proceeding would be wholly (j)(4)(D). rules where it would be unfair to allow inappropriate for auctions of shared 12. The Commission adopts the rules one group of licensees in the same frequencies governed by Part 90 of the in this Third Report and Order in order service to benefit or be disadvantaged by Commission’s rules. In support of this to facilitate broad-based participation in operating under a different set of rules position, these commenters argue that: auctions. The Commission believes that than its competitors in the same service (1) None of the Commission’s auctions standardizing the rules regarding (e.g., in the case of a reauction of have involved shared frequencies; (2) definitions of eligible entities, unjust licenses following bidder default). any auction of Part 90 shared spectrum enrichment and bidding credits will Similarly, NextWave contends that the would involve participants ranging in assist small, minority and women- adoption of service-specific rules may size from very large corporations to very owned businesses because the rules’

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As the these commenters argue that any strict on whether installment payments Commission has discussed in the past, requirement that financial statements be should be adopted in the future. a single gross revenues size standard is audited is unduly burdensome for most 13. The Commission also notes that an established method for determining small business applicants. In addition, pursuant to Section 309(j)’s obligations size eligibility for various kinds of AMTA contends that the certification to ensure opportunities for participation federal programs that aid smaller requirement already present on the by small enterprises, rural telephone businesses. NextWave, in its comments, short-form (FCC Form 175) application companies, and minority- and women- agrees, stating that gross revenues are a is sufficient to ensure that small owned businesses, and Section 257 of generally reliable measure of whether a business applicants submit only the Telecommunications Act, requiring company is indeed small. In addition, accurate information, both financial and that the Commission identify and while the Commission has used a total otherwise, as part of their applications. eliminate market entry barriers for small assets test in determining eligibility for Only two commenters, ISTA and and entrepreneurial entrepreneur blocks, see, e.g., 47 CFR PageNet advocate that applicants use telecommunications businesses, the 709(a), the Commission has not used audited financial statements in order to Commission has commenced a series of such a test for determining small qualify for small business status. After studies, and has other studies in the business eligibility. The Commission review of the comments on this issue, planning process, to examine barriers also notes that the Small Business Act’s the Commission concludes that such a encountered by minorities and women statutory definition of small business requirement would be onerous to small in the auctions process and the does not use a total assets test. See 15 business. The Commission also agrees secondary market for licenses. When U.S.C. 632(c). Thus, the Commission with AMTA’s observation that the those studies are completed, the declines to adopt any other measure of certification requirement on the FCC Commission will examine whether business size, such as a total assets test, Form 175 acts to ensure that applicants additional measures are warranted to at this time. submit accurate information. promote the objectives of giving small 16. Definition of Gross Revenues. All Furthermore, as discussed below, the businesses, rural telephone companies, commenters addressing the issue Commission also will retain the and women- and minority-owned support the Commission’s proposal in authority to audit applicants businesses the chance to provide the Notice to adopt a uniform definition individually if there is any question spectrum-based services, as required in of gross revenues for all auctionable concerning small business status. The Section 309(j). services. The Commission believes that Commission therefore declines to 14. Small Business Size Standards. a uniform definition of gross revenues, require all applicants to use audited The Commission adopts its proposal to as the essential element of our small financial statements to support their continue to define small businesses, as business definitions, furthers the gross revenue calculations. Audited it has in the past, based on the Commission’s goal of establishing financial statements, however, are characteristics and capital requirements uniform definitions and is necessary if they exist. The Commission of the specific service. The Commission administratively efficient. Thus, the also notes that, consistent with the believes that this approach has given it Commission adopts a uniform definition Small Business Act, 15 U.S.C. flexibility that will continue to benefit of gross revenues in the Part 1 rules. 632(c)(ii)(II), where an entity has been small businesses in future auctions. The 17. Various commenters addressed in existence for less than three years, the Commission also notes that this specific aspects of the Commission’s entity’s gross revenues should be approach is consistent with the Small proposed definition of gross revenues. averaged for the relevant number of Business Administration’s practice of CII supports the Commission’s proposal years the entity, or its predecessor in approving small business size standards that applicants be permitted to use interest (affiliate), has been in existence. on a service-by-service basis. either fiscal year or calendar year figures 19. Accordingly, as proposed in the Commenters addressing this issue for calculation purposes. No Notice, and consistent with the support this conclusion. For example, commenters opposed this proposal. The Commission’s broadband PCS rules, the AMTA and NextWave both believe that Commission is persuaded that Commission will define gross revenues the determination of appropriate small permitting use of either of these figures for all auctionable services as: business size standards should be made will assist applicants in providing the on a case-by-case basis. most current information available on all income received by an entity, whether 15. No commenters addressed the their applications. The Commission earned or passive, before any deductions are Commission’s proposal in the Notice to concludes that its general gross revenue made for costs of doing business (e.g., cost of goods sold), as evidenced by audited create size standards that require small definition should permit applicants to financial statements for the three (3) most businesses to have gross revenues ‘‘not support their gross revenue calculations recent calendar years or, if audited financial to exceed,’’ as opposed to ‘‘less than’’ a using either fiscal or calendar years. statements were not prepared on a calendar- certain amount. Nevertheless, the 18. Several commenters responded to year basis, for the most recently completed Commission believes that adoption of the Commission’s tentative conclusion fiscal years preceding the filing of the this proposal is important to further its in the Notice to accept the use of applicant’s short-form (FCC Form 175). If an objective of establishing uniform unaudited financial statements where entity was not in existence for all or part of definitions relating to small business audited financial statements are the relevant period, gross revenues shall be evidenced by the audited financial standards for future auctions. From this unavailable, if prepared in accordance statements of the entity’s predecessor-in- point forward, the Commission’s with Generally Accepted Accounting interest or, if there is no identifiable service-specific small business Principles, for gross revenue predecessor-in-interest, unaudited financial definitions will be expressed in terms of calculations by auction applicants statements certified by the applicant as

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The of determining the gross revenues of an services to rural areas. the Commission Commission adopts its proposal to applicant seeking to qualify for status as also noted that adopting the 1996 Act adopt a uniform definition of the term a small business. See 47 CFR definition would promote uniformity of ‘‘affiliate’’ for all future auctions. As the 1.2110(b)(4)(x). In the past, however, the regulations and is therefore consistent Commission discussed in the Notice, term ‘‘consortium’’ has been defined on with the mandate of that legislation to the term affiliate is defined by the a service-by-service basis as ‘‘a ease regulatory burdens and eliminate Commission’s Part 1 rules as an conglomerate organization formed as a unnecessary regulation. The individual or entity that directly or joint venture between or among Commission believes that the same indirectly controls or has the power to mutually independent business firms, reasons for amending this definition in control the applicant; is directly or each of which individually satisfies the the broadband PCS rules justify indirectly controlled by the applicant; is definition of a very small business, amending the definition in Part 1 for all directly or indirectly controlled by a small business or entrepreneur.’’ See, services subject to competitive bidding. third person(s) that also controls or has e.g., 47 CFR 101.1112(f) (defining the 25. Thus, the Commission amends the power to control the applicant; or term ‘‘consortium’’ for LMDS). This § 1.2110(b)(3) to define the term rural has an ‘‘identity of interest’’ with the results in each member of a consortium telephone company as a local exchange applicant. The Commission has found being defined as an affiliate of each carrier operating entity to the extent that that this definition, which also contains other member. The resulting attribution such entity—(A) provides common detailed discussion and examples of of gross revenues of each member of the carrier service to any local exchange relevant terms such as ‘‘control’’ and consortium is inconsistent with our carrier study area that does not include ‘‘identity of interest,’’ has proven intention to permit small or very small either (i) any incorporated place of workable and is broad enough to businesses to form consortia as a means 10,000 inhabitants or more, or any part address a wide variety of business of increasing the capital available to thereof, based on the most recently structures. In particular, this definition participate in the Commission’s available population statistics of the has helped to ensure that businesses auctions, while still being eligible for Bureau of the Census, or (ii) any seeking small business status are truly status as a small business. territory, incorporated or small. The Commission also believes 23. The Commission therefore amends unincorporated, included in an that this definition, by focusing on § 1.2110(b)(4)(x) to provide that a urbanized area, as defined by the ‘‘indicia of control,’’ is consistent with ‘‘consortium’’ as defined on a service- Bureau of the Census as of August 10, our proposals regarding attribution of by-service basis for purposes of 1993; (B) provides telephone exchange gross revenues of investors and affiliates determining status as a designated service, including exchange access, to discussed in the Second Further Notice entity will not be treated as a ‘‘joint fewer than 50,000 access lines; (C) of Proposed Rule Making in this docket. venture’’ under our attribution provides telephone exchange service to 21. CIRI requests that the Commission standards. As a result, when two or any local exchange carrier study area include in its general definition of the more entities form an association that with fewer than 100,000 access lines; or term ‘‘affiliate’’ an exemption for Indian meets the service-specific definition of a (D) had less than 15 percent of its access tribes and Alaska Regional or Village ‘‘consortium,’’ the gross revenues of lines in communities of more than Corporations, as the Commission did for each entity will not be attributed to each 50,000 on the date of enactment of the broadband PCS, and more recently, for entity in determining eligibility for Telecommunications Act of 1996. LMDS. The Commission agrees with designated entity status. The 26. Installment Payments. After CIRI that entities owned and controlled Commission believes that this careful review of the comments in this by Indian tribes and Alaska Regional or clarification to the general definition of docket, and the Commission’s recent Village Corporations should be eligible the term ‘‘affiliate’’ will enhance the decisions in the broadband PCS C block, to bid in future auctions as small ability of small businesses to form LMDS and 800 MHz SMR services, the businesses, notwithstanding their associations that will permit them to bid Commission has determined that affiliation with other entities owned by for licenses that would be too expensive installment payments should not be tribes or Alaska Native Corporations for them individually. Auction winners used in the immediate future as a means whose gross revenues cause the have successfully used consortium of financing small business combined average gross revenues of the structures to acquire licenses and ‘‘spin- participation in the Commission’s entity and its affiliates to exceed the off’’ licenses post-auction, and the auction program. See also ‘‘FCC general limits for eligibility for bidding Commission wishes to continue to make Announces Spectrum Auction Schedule as such a business. As the Commission this option available. for 1998,’’ Public Notice, DA 97–2497 stated in support of a similar exemption 24. Definition of Rural Telephone (rel. November 25, 1997), announcing from the affiliation rules in LMDS, this Company. The National Telephone the following upcoming auctions: exception will ensure that these entities Cooperative Association (‘‘NTCA’’) and LMDS, 220 MHz, broadband C block will have a meaningful opportunity to the Rural Telecommunications Group Reauction, 39 GHz, Paging, 800 MHz participate in spectrum-based services (‘‘RTG’’), commented in support of the SMR (Lower 80 and General Category from which they would otherwise be Commission’s proposal in the Notice to Channels), Location Monitoring precluded. Furthermore, the adopt the definition of a rural telephone Services (LMS), Public Coast Stations, Commission does not believe that this company contained in the Pending Analog Broadcast Licenses for exemption for the specified entities will Telecommunications Act of 1996 as the Commercial Radio and Television entitle them to an unfair advantage over single definition of the term to be used Stations, and ‘‘FCC Announces Auction entities that are otherwise eligible for in all auctionable services. No Schedule for the General Wireless small business status. commenters opposed this proposal. As Communications Service,’’ Public

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Notice, DA 97–2634 (rel. December 17, Consistent with this decision, the 309(j) requires the Commission to 1997). The Commission must balance Commission hereby eliminates consider alternative methods to allow competing objectives in Section 309(j) installment payments in the auction of for dissemination of licenses among that require, inter alia, that it promote the lower 80 and General Category designated entities, including small the development and rapid deployment channels in the 800 MHz SMR service. businesses. The Commission believes of new spectrum-based services and Although Merlin submits that the that the rules it adopts below regarding ensure that designated entities are given elimination of the Commission’s the use of bidding credits for small the opportunity to participate in the installment payment provisions in any business applicants in future auctions provision of such services. The service would be contrary to the will both fulfill the mandate of Section Commission notes that its experience Commission’s conclusions in previous 309(j) to provide small businesses with has demonstrated that installment rule makings, the Commission believes the opportunity to participate in payments may not be necessary to that this decision is consistent with auctions and ensure that new services ensure a meaningful opportunity for suggestions of CIRI, as well as the are offered to the public without delay. small businesses to participate Commission’s general experience in 30. Merlin contends that while successfully in our auction program. For examining the success of the installment significant bidding credits can be useful example, in the cellular auction of payment program to date. As the in helping smaller entities win licenses licenses for unserved areas, which had Commission recently recognized in when they bid against larger companies, no special bidding provisions, 36 eliminating installment payments for bidding credits alone do not help percent of the licenses went to small or LMDS licensees, Congress did not smaller entities access the capital very small businesses. The Commission require the use of installment payments required to build a spectrum-based also stated that in assessing the public in all auctions, but rather recognized service. In addition, Merlin states that interest, we must try to ensure that all them as one means of promoting the eliminating the installment payment the objectives of Section 309(j) are objectives of Section 309(j)(3) of the plan would raise the cost of capital for considered. The Commission has found, Communications Act. The Commission small businesses which would be forced for example, that obligating licensees to continues to experiment with different to borrow additional funds from pay for their licenses as a condition of means of achieving its obligations under commercial lenders at higher interest receipt requires greater financial the statute, and has offered installment rates. Merlin also argues that because accountability from applicants. payments to licensees in several many small businesses have relied on 27. In addition, questions have been auctioned wireless services. Installment the current installment plan terms in raised in bankruptcy litigation about payments are not the only tool available formulating business plans necessary to whether the Commission can quickly to assist small businesses. Indeed, the bid in upcoming auctions, any decision reclaim licenses should a licensee Commission have conducted auctions to eliminate the installment payment declare bankruptcy (even though without installment payments. program could effectively preclude licenses are expressly conditioned upon Moreover, Section 3007 of the Balanced small business participation in future payment and cancel automatically in Budget Act requires that the auctions altogether. The Commission the event of non-payment) resulting in Commission conduct certain future disagrees with Merlin’s assertions. As significant delays in the provision of auctions in a manner that ensures that the Commission has discussed, the service to the public. While the all proceeds from such bidding are Commission believes that the increased Commission is confident of prevailing deposited in the U.S. Treasury not later in any litigation, until controlling bidding credits it adopts below will than September 30, 2002. Although the precedent is established or legislation help fulfill the mandate of Section Commission seeks comment in the addressing the conflicting rights is 309(j)(4)(D) of the Communications Act Second Further Notice of Proposed Rule enacted, such delays may occur. In this to provide small businesses with the Making on offering installment payment regard, the Commission has strongly opportunity to participate in spectrum- plans in the future, the Commission urged Congress to adopt legislation that based services. As noted above, this believes that Section 3007 may require would clarify that provisions of the approach was successful in enabling that these auctions be conducted Bankruptcy Code (1) are not applicable small businesses to participate in the without offering long-term installment to any FCC license for which a payment WCS auction, in which the Commisison payments. See Balanced Budget Act of obligation is owed; (2) do not relieve was unable to employ installment any licensee from payment obligations; 1997. The Conference Report on the payments because of the statutory and (3) do not affect the Commission’s Balanced Budget Act of 1997 indicates deadline for depositing auction authority to revoke, cancel, transfer or that the deadline set forth in Section revenues in the U.S. Treasury. The assign such licenses. The Commission 3007 ‘‘applies to all competitive bidding Commission also recently used this also notes that, in order to balance the provisions in this title of the conference approach in establishing rules for the impact on small businesses of its agreement and any amendments to other auction of licenses for 800 MHz SMR decision to discontinue the use of law made in this title.’’ Conference and LMDS. installment payments in the near future, Report on H.R. 2015, Balanced Budget 31. The Commission recognizes that it the Commission is adopting higher Act of 1997, Congressional Record— previously adopted rules for both the bidding credits than those proposed in House, Vol. 143, No. 109—Part II, at 220 MHz and paging services that the Notice. H6176. permit eligible small businesses to pay 28. Therefore, subject to the 29. In this regard, the Commission for their licenses in installments. Commission’s proposals in the Second agrees with commenters such as CIRI, Several petitions for reconsideration Further Notice of Proposed Rule that contend that increased bidding have been filed in these proceedings Making, the Commission concludes that credits will allow responsible small that remain pending before the until further notice, installment bidders with appropriately tailored Commission. The Commission will payments should not be offered in business plans to secure adequate resolve these petitions separately in a auctions as a means of financing small private financing to be successful in manner consistent with our decision businesses and other designated entities future auctions. Further, as the herein to suspend the use of installment seeking to secure spectrum licenses. Commission has already noted, Section payment plans at least until our rights

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For example, Pocket states that years not exceeding $40 million be auctions, there is disagreement among bidders often ‘‘bid through’’ bidding eligible for bidding credits of 25 commenters as to whether a standard credits and that bidding credits tend to percent. As discussed above, the schedule of bidding credits for small result in higher bids and, in general, Commission believes that higher businesses is desirable. For example, CII higher auction prices. The Commission bidding credits than those proposed in supports our proposal to standardize the believes that without installment the Notice are necessary now that our sliding scale of bidding credits that is payments, bidding credits, coupled with installment payment program is available to an applicant. Specifically, providing bidders sufficient time to suspended. The Commission believes CII believes that granting businesses of raise financing, will enable small that the schedule of bidding credits it different sizes different levels of bidding businesses to successfully compete in adopts is reasonable in light of our credits in different services threatens to future auctions. Also, tiered bidding decision to suspend installment result in inconsistent participation by credits have proven to work well and payments for services auctioned in the small businesses in spectrum auctions. provide for more competition between immediate future, and expect that it will In contrast, some commenters oppose small business participants of different any set schedule of bidding credits, and sizes. The use of tiered bidding credits prove sufficient to enable small believe that the Commission should was successful in enabling small businesses to obtain spectrum licenses specify appropriate bidding credits for businesses to participate in the WCS through our auction program. Thus, the each auctionable service. Among these, auction, in which the Commission was Commission declines to adopt Merlin’s PCIA and AMTA believe that the unable to employ installment payments proposal. The Commission also notes Commission should continue to because of the statutory deadline for that it seeks comment in the Second examine what constitutes an effective depositing auction revenues in the U.S. Further Notice of Proposed Rule Making bidding credit on a service-by-service Treasury. Finally, while the on means other than bidding credits and basis because the financing Commission recognizes Pocket’s installment payments by which the requirements of different spectrum- concerns about the possibility that Commission might facilitate the based services may necessitate use of bidders ‘‘bid through’’ bidding credits, participation of small businesses in our different size bidding credits to provide the Commission does not believe that spectrum auction program. the proper assurances that small this problem is significant where not all 36. Unjust Enrichment. The businesses will be able to effectively bidders are eligible for bidding credits, Commission adopts its proposal to compete. As the Commission stated in and the size of the bidding credit varies conform the Part 1 unjust enrichment the Notice, the Commission believes among those who are eligible. rules to the broadband PCS rules. The that an approach in which the 34. Consistent with this reasoning, the Commission believes that effective Commission provides certainty for Commission adopts the following unjust enrichment rules are necessary to future auctions about the size of schedule of bidding credits for use in ensure that meaningful small business available bidding credits will benefit future auctions in which provisions for participation in spectrum-based services small businesses because potential designated entities are offered: is not thwarted by transfers of licenses bidders will have more information well to non-designated entities. As the Bidding in advance of the auction than Commission stated in the Notice, the previously about how such levels will credits Average annual gross revenues broadband PCS unjust enrichment rules be set. Once a small business definition (per- cent) are preferable to our current general is adopted for a particular service, unjust enrichment rules because they eligible businesses will benefit they are Not to exceed $3 million ...... 35 provide greater specificity about funds able to refer to a schedule in our Part 1 Not to exceed $15 million ...... 25 due at the time of transfer or assignment rules to determine the level of bidding Not to exceed $40 million ...... 15 credit available to them. The and specifically address changes in Commission therefore adopts its The Commission recognizes that these ownership that would result in loss of proposal to create a standard schedule credits are higher than some previously eligibility for installment payments, of bidding credits. adopted for specific services. Based on which the current general rules do not 33. In light of the Commission’s the Commission’s past auction address. The broadband PCS rules also decision to suspend installment experience and the suspension of address assignments and transfers payment financing for the near future, installment payments, however, the between entities qualifying for different the Commission has determined that Commission believes that the approach tiers of installment payments or bidding higher bidding credits than those taken here will provide adequate credits, thus supplying clearer guidance proposed in the Notice would better opportunities for small businesses of for auctions in which tiered installment effectuate our statutory mandate. varying sizes to participate in spectrum payment plans or bidding credits are Airadigm supports larger bidding auctions. provided. Commenters addressing this credits than those proposed by the 35. The Commission recognizes that issue largely support this decision. For Commission. Similarly, CIRI contends Merlin recommends providing higher example, Pocket and Ericsson both that unless the Commission is prepared bidding credits than those which the argue that modified unjust enrichment to establish the creditworthiness of Commission adopts. Specifically, rules would still deter transfers installment payment applicants, the Merlin suggests that (1) businesses with designed to subvert the Commission’s Commission should offer substantial average gross revenues for the preceding rules, but would provide businesses bidding credits to small businesses in three years not exceeding $3 million be with more flexibility in situations of lieu of government financing. The eligible for bidding credits of 40 financial distress and permit the transfer

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If a licensee seeks to make any the amount of time the initial license While the Commission did not receive change in ownership that would result has been held. Consistent with the rules significant comment on this issue, the in the licensee qualifying for a less that exist in these services, the amount Commission notes that in awarding favorable installment plan, the licensee of this payment will be reduced over licenses in the past, the Commission has must seek Commission approval and time as follows: A transfer in the first emphasized that the terms associated must adjust its payment plan to reflect two years of the license term will result with the continued grant of a license its new eligibility status. in a forfeiture of 100 percent of the will be governed by current Commission value of the bidding credit (or, in the Unjust Enrichment and Bidding Credits rules and regulations. For example, in case of very small businesses awarding licenses to C block licensees 39. For existing and future licensees transferring to small businesses, 100 paying for their licenses in installments, who qualified or qualify in the future for percent of the difference between the the Commission indicated in the a bidding credit in paying for their bidding credit received by the former associated ‘‘Note’’ and ‘‘Security winning bid, the Commission also and the bidding credit for which the Agreement’’ that the terms of the amends § 1.2111(c) to provide for unjust latter is eligible); in year three of the installment plan would be governed by enrichment payments similar to those license term the payment will be 75 and construed in accordance with then- contained in the Commission’s percent; in year four the payment will applicable Commission orders and broadband PCS rules. Specifically, be 50 percent; and in year five the regulations, as amended. Therefore, the during the term of the initial license payment will be 25 percent, after which Commission concludes that the unjust grant, if a licensee seeks to assign or there will be no payment. These enrichment rules it adopts apply to transfer control of its license to an entity assessments will have to be paid to the existing licensees, and supersede not meeting the eligibility standards for U.S. Treasury as a condition of approval service-specific rules where applicable. bidding credits, or seeks to make any of the assignment, transfer, or Specifically, these rules will supersede other change in ownership that would ownership change. All current and existing unjust enrichment provisions in result in the licensee no longer future licensees, with the exception of the narrowband and broadband PCS, qualifying for a bidding credit, the entrepreneur block licensees subject to WCS, 900 MHz, and IVDS services. See licensee must seek Commission restrictions on assignments and 47 CFR 24.309(f) (narrowband PCS), approval and must reimburse the transfers of licenses, will be governed by 24.711 (C block), 24.716(d) (F block), government for the amount of the this modification to our general rules. 27.209(d)(1), (2) (WCS), 90.812(b) (900 bidding credit, plus interest based on The Commission believes that our MHz), 95.816(e) (IVDS). As discussed the rate for U.S. Treasury obligations decision to maintain the original above, the Commission suspends the applicable on the date the license is transfer restrictions for such licensees is use of installment payments for the granted, as a condition of the approval proper in light of the special provisions immediate future as a means of of such assignment, transfer or other which were made available for licensees financing small business participation ownership change. Similarly, if the in the Commission’s entrepreneur in the Commission’s auction program. licensee seeks to assign or transfer blocks. As a result, the Commission’s decision control of its license to an entity with regard to unjust enrichment meeting the eligibility standards for Unjust Enrichment and Partitioning and payments as they relate to licensees lower bidding credits, or seeks to make Disaggregation paying for their licenses in installment any other change in ownership that 41. Also as proposed in the Notice, payments will apply only to existing would result in the licensee qualifying the Commission will adopt a general licensees, their transferees and assignees for a lower bidding credit under this rule modeled on the Commission’s (until the Commission reinstates section, the licensee must seek broadband PCS rules to determine the installment payments). Commission approval and must pay to amount of unjust enrichment payments the United States Treasury the assessed for all current and future Unjust Enrichment and Installment difference between the amount of the licensees. Thus, the Commission adopts Payments bidding credit obtained by the licensee a general unjust enrichment rule that 38. For existing licensees who make and the bidding credit for which the treats partitioning and disaggregation by use of Commission installment payment assignee, transferee or licensee is licensees in the same manner as the financing, the Commission amends eligible as a condition of the approval of broadband PCS rule. Specifically, if the § 1.2111(c) to conform to the such assignment, transfer or other licensee seeks to partition any portion of Commission’s broadband PCS rules. ownership change. These provisions its geographic service area, the amount Specifically, if a licensee seeks to assign also will apply to licensees who of the unjust enrichment payment or transfer control of its license to an partition or disaggregate their licenses. discussed above will be calculated entity not meeting the eligibility 40. The Commission also adopts its based upon the ratio of population in standards for installment payments, the proposal in the Notice to provide for the partitioned area to the overall licensee must make full payment of the decreasing unjust enrichment payments population of the licensed area. remaining unpaid principal and any for licensees that utilized a bidding Similarly, if a licensee seeks to unpaid interest accrued through the credit when paying for their licenses disaggregate spectrum, the amount of date of the assignment or transfer as a and that make transfers and assignments the unjust enrichment payment will be condition of Commission approval. occurring later in the license term. This determined based upon the ratio of the Similarly, if the licensee seeks to make decision also is supported by the amount of spectrum disaggregated to the any change in ownership structure that commenters. In amending the rule in amount of spectrum held by the would result in the licensee losing this manner, the Commission ensures disaggregating licensee.

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IV. Application Issues required for the grant of a waiver, in size that would affect an applicant’s 42. Electronic Filing. The Commission provide adequate assurance that eligibility for designated entity believes that electronic filing of all requests for waiver relating to the provisions. In contrast, Metrocall short-form and long-form applications electronic filing of applications will contends that all changes in ownership for auctionable services is in the best receive proper consideration. In incidental to mergers and acquisitions, interest of auction participants, as well addition, the Commission emphasizes non-substantial pro forma changes, and as members of the public monitoring that it has typically responded rapidly involuntary changes in ownership Commission auctions. Therefore, the to time-sensitive waiver requests filed should be categorized as minor. Commission amends §§ 1.2105(a) and by auction applicants, and intends to Metrocall also states that an applicant 1.2107(c) of its rules to require continue to do so in the future. should not be permitted to upgrade its 44. Only one commenter, Airadigm, electronic filing of all short-form and designated entity status after the short opposes an electronic filing long-form applications, beginning form filing deadline (i.e., go from a requirement. Airadigm states that the January 1, 1999, unless it is not ‘‘small’’ to ‘‘very small’’ business), but Commission experienced difficulties in operationally feasible. Although in the should be permitted to lose its processing electronic filings during the Notice the Commission proposed to designated entity status as a result of a IVDS auction and argues that removing require electronic filing commencing minor change in control (i.e., exceed the the option of manual filing could result January 1, 1998, the Commission threshold for eligibility as a small in similar problems in future auctions. believes that this additional phase-in business). The Commission believes that the period before the requirement becomes 47. After careful consideration of the system enhancements discussed above, comments addressing the issue, the effective will benefit potential bidders. most of which were not in place during Commission concludes that a definition The majority of the comments the IVDS auction, adequately respond to of major and minor amendments similar addressing the issue support the Airadigm’s concerns. The Commission to that provided in the Commission’s decision to require electronic filing. For also notes that its experiences from PCS rules, 47 CFR 24.822, is example, PageNet contends that recent auctions demonstrate that the appropriate. After the short-form filing electronic filing promotes access to electronic bidding system is reliable. deadline, applicants will be permitted applications by competing bidders, as For example, in the broadband PCS D, to make minor amendments to their well as the general public, by making it E, and F block auction, 94 percent of the short-form applications both prior to possible to review and download qualified bidders filed their short-form applications without traveling to FCC applications electronically. In the and during the auction. However, headquarters or contracting for recently completed 800 MHz SMR applicants will not be permitted to make photocopying of paper applications. To auction, 93 percent of the qualified major amendments or modifications to facilitate public access, the Commission bidders filed their short-form their applications after the short-form has developed user-friendly electronic applications electronically. The filing deadline. Major amendments will filing software and Internet World Wide Commission did not experience include, but will not be limited to, Web forms to give auction applicants problems with its electronic filing changes in license areas designated on the ability to conveniently file and procedures. the short-form application, changes in review applications. This software helps 45. Finally, as the Commission stated ownership of the applicant which applicants ensure the accuracy of their in the Notice, the Commission would constitute a change in control, applications as they are filling them out, recognizes that there is a need for a and the addition of other applicants to and enables them to correct errors and period of time before a comprehensive any bidding consortia. Consistent with omissions prior to submitting their electronic filing requirement becomes the weight of the comments addressing applications. To assist the public, the effective in order for bidders to prepare the issue, major amendments will also Commission provides technical support and be completely comfortable with this include any change in an applicant’s personnel to answer questions and work process. The effective date of January 1, size which would affect an applicant’s with callers using the electronic auction 1999, will provide potential bidders eligibility for designated entity system. In addition, the Commission has with adequate time in which to adapt to provisions. For example, if Company A, demonstrated its auction software at electronic filing requirements. Finally, an applicant that qualified for special conferences organized by potential although the Commission concludes provisions as a small business, merges bidders and members of the industry in that electronic filing is the preferred with Company B during the course of an order to familiarize interested parties filing method, the Commission auction, and if, as a result of this with our recent software enhancements. nevertheless reserves the right to merger, the merged company would not 43. AT&T is generally supportive of provide for manual filing in the event of qualify as a small business, the electronic filing, but proposes that the technical failure or other difficulties. amendment reflecting the change in Commission create a waiver process 46. Short-form Application ownership of Company A would be whereby an applicant that has missed a Amendments. The majority of considered a major amendment. filing deadline due to technical commenters support the Commission’s Otherwise, the new entity could receive problems can obtain a waiver quickly or proposal in the Notice to create a small business bidding credits and be permitted to submit a paper original uniform definition of major and minor installment payments when it does not of the application by hand or mail the amendments to applicants’ short-form qualify for them. As is the case in the same day. In addition, AT&T requests (FCC Form 175) applications for all Commission’s PCS rules, however, that a Commission staff member be future auctions. However, commenters’ applicants will be permitted to amend provided with the authority to grant opinions differ on what types of their short-form applications to reflect such a waiver in the event of electronic amendments the Commission should the formation of bidding consortia or filing difficulties. The Commission does categorize as major or minor. For changes in ownership that do not result not believe that a specific waiver example, AT&T and ISTA argue that in a change in control of the applicant, provision is necessary. The major amendments should include all provided that the parties forming Commission’s existing waiver changes in ownership that constitute a consortia or entering into ownership provisions, which specify the showing change in control, as well as all changes agreements have not applied for licenses

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2323 in any of the same geographic license areas. AT&T argues that the aspect of 52. Ownership Disclosure areas. In contrast, minor amendments the rule prohibiting the addition or Requirements. As the Commission will include, but will not be limited to, deletion of markets often has had the indicated in the Notice, the Commission the correction of typographical errors unfortunate result of discouraging non- continues to believe that detailed and other minor defects, and any auction, business-related discussions ownership information is necessary to amendment not identified as major. between auction applicants who are not ensure that applicants claiming small 48. As noted above, the Commission actually bidding for licenses in the same business status qualify for such status, has generally refused to grant requests geographic license areas. Because of the and to ensure compliance by all to add or delete markets on an potential anti-competitive results of applicants with spectrum caps and applicant’s short-form application in allowing bidders to delete markets after other ownership limits. Disclosure of order to prevent collusive conduct or the short-form filing deadline, however, ownership information also aids bidders gaming that would reduce the the Commission believes that this type by providing them with information competitiveness of the auction. While of error can be more effectively about their auction competitors and the Commission recognizes that there addressed by other means, including alerting them to entities subject to our may be some circumstances in which increased awareness on the part of anti-collusion rules. Therefore, the the competitiveness of the auction prospective auction applicants of the Commission adopts standard ownership might be enhanced by allowing consequences of choosing ‘‘all markets,’’ disclosure requirements for all applicants to add markets to their short- as well as software enhancements that auctionable services that will avoid the form applications, the Commission make specifying particular markets on variations found in the Commission’s concludes that the risks of encouraging the FCC Form 175 less burdensome. current service-specific ownership or facilitating conduct that negatively 50. The Commission also emphasizes disclosure requirements. affects the competitiveness of the that, pursuant to § 1.65 of the 53. This decision is widely supported auction and the post-auction market Commission’s rules, each auction by the majority of comments in this structure outweigh the benefits of applicant is required to assure the proceeding. Most commenters categorizing such amendments as continuing accuracy and completeness addressing the issue of ownership minor. Several commenters support this of information furnished in a pending disclosure support requiring some level conclusion that the addition or deletion application. See 47 CFR 1.65. Each of ownership information at the short- of markets on the short-form application applicant is therefore under a form application stage. For example, PCIA believes that full disclosure of should always be deemed a ‘‘major’’ continuing obligation to update its amendment. Specifically, PageNet states bidder ownership information is short-form and long-form applications that because the only new information necessary if competing bidders are to as appropriate to reflect any changes that an applicant could be deemed to accurately assess the legitimacy of their that would make a pending application possess at this stage would be licenses auction opponents and their respective inaccurate or incomplete, or that are on which other applicants intend to bid, bids. PCIA contends that there can be no necessary to determine that an applicant amendment of the short-form valid reason for legitimate bidders to is in compliance with our rules. As in application in this regard could only hide their ownership. Such information, all prior auctions, an application that is lead to auction abuses. Those according to PCIA, is crucial for amended by a major amendment will be commenters supporting defining the purposes of the Commission’s anti- considered newly filed, and therefore addition or deletion of markets after the collusion rules, spectrum caps, and short-form filing deadline as a minor will not be accepted after the short-form other ownership limits. Similarly, amendment argue that such an filing deadline. The Commission further PageNet contends that full ownership amendment should only be permitted notes that it has waived its ex parte disclosure is important to aid bidders in prior to the upfront payment deadline or rules as they apply to the submission of compiling information about their the release of the Public Notice amended short-form applications to auction competitors and, most announcing qualified bidders. After this maximize applicants’ opportunities to importantly, to alert them to any point, the overall competitiveness of the seek the advice of Commission staff conduct that might be a violation of the auction may be threatened. when making amendments at any time Commission’s anti-collusion rules. In 49. AT&T proposes that the deletion after the short-form filing deadline. the satellite context, Hughes argues that of markets to avoid specifying markets 51. Finally, the Commission notes the submission of detailed ownership that overlap with another auction that in the context of cellular unserved information is essential because of the applicant (and thus preventing area licensing, WWC contends that the extreme costs associated with the build- discussion on potentially non-auction- rules adopted in this proceeding out of a satellite system. In contrast, related matters such as interconnection, addressing major and minor only CII argues that the Commission’s resale, and equipment orders that do not amendments to short-form applications objectives with regard to the rules affect bids or bidding strategies) be should not apply to cellular unserved governing designated entity status, deemed a minor amendment. The area applications filed in 1994 as these spectrum caps, and other ownership Commission notes that in previous applications were to be governed by a limitations would be fully satisfied by auctions some applicants have ‘‘letter-perfect’’ standard and applicants deferring the filing of comprehensive inadvertently placed themselves at risk were given no opportunity to cure ownership information until the long- of violating the Commission’s anti- minor defects. While the Commission form application stage. collusion rule by choosing to specify has considered WWC’s argument, the 54. For all future auctions, therefore, ‘‘all markets’’ on their short-form Commission believes that it is the Commission will model our applications when they intended to bid inapplicable. WWC addresses the initial reporting requirements on the general only on a particular license or group of application procedures for cellular application requirements contained in licenses. As a general matter, the anti- unserved area licenses, while the Part 1 our broadband PCS rules. Under this collusion rule does not prohibit non- rules, in contrast, address application standard, all auction applicants will be auction-related business negotiations procedures for participation in an required to disclose the real party or between auction applicants that have auction once a finding of mutual parties in interest by including as an applied for the same geographic service exclusivity has been made. exhibit to their short-form applications

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 2324 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations detailed ownership information. this term is defined in § 1.2110 of our which blind bidding is used, PageNet Although the Commission’s current Part rules; (6) if the applicant is a general contends that a competitor is often able 1 rules require auction applicants to list partnership, the name, address and to bid up the price of a license that it all owners of a five percent or greater citizenship of each partner, and the never intends to win in order to force interest in the applicant, the share or interest participation in the the incumbent to buy the license at a Commission agrees with commenters partnership; (7) if the applicant is a higher price. PageNet further contends such as CII that argue that applicants limited partnership, the name, address that this higher price is then reflected in should not be required to list all holders and citizenship of each general partner higher rates for services, which in turn of this small an interest in the applicant, and each limited partner whose interest affect the incumbent’s ability to unless they are in a position of control in the applicant is equal to or greater compete. As discussed above, the by virtue of other factors (i.e., voting than 10 percent (as calculated according Commission agrees that it is important agreements, management structure), or to the percentage of equity paid in and that auction applicants disclose certain hold a significant passive ownership the percentage of distribution of profits ownership information prior to the start interest (i.e., 20 percent). Thus, the and losses); (8) if the applicant is a of an auction. At the same time, Commission amends its rules to require limited liability corporation, the name, however, the Commission believes that that applicants list controlling interests address and citizenship of each of its in certain circumstances, the as well as all parties holding a 10 members; and (9) a list of all parties competitiveness of an auction may be percent or greater interest in the holding indirect ownership interests in increased if less bidder information is applicant and any affiliates of these the applicant, as determined by made available. In the Competitive interest holders. See 47 CFR successive multiplication of the Bidding Second Memorandum Opinion 1.2110(b)(4). A 10 percent or greater ownership percentages for each link in and Order, the Commission retained the interest reporting requirement is the vertical ownership chain, that equal flexibility to conceal bidder identities if consistent with the revised definition of 10 percent or more of the applicant, further experience showed that it would the term ‘‘applicant’’ we adopt for except that if the ownership percentage be desirable to do so. More recently, in purposes of the anti-collusion rule. The for an interest in any link in the chain the auction rules for geographic area Commission notes that PageNet exceeds 50 percent or represents actual paging licenses, the Commission contends that the Commission should control, it shall be treated and reported concluded that the advantages of require disclosure of entities and as if it were a 100 percent interest. See, limiting information disclosed to individuals that own more than five e.g., 47 CFR 20.6(d)(8). bidders outweigh the disadvantages of percent of the applicant or who have 56. In addition, consistent with the this approach, and reserved the provided more than five percent of the reporting requirements set forth in the discretion to announce by Public Notice applicant’s equity. However, as 900 MHz SMR rules, the Commission prior to the auction the precise suggested above, the Commission will require that applicants claiming information to be revealed to bidders believes that the detailed reporting small business status disclose on their during that auction. The Commission requirement we create today, in short-form applications the names of believes that the uniform rules adopted combination with our comprehensive each controlling interest and affiliate, as today provide the Commission with the affiliation rules, permits us to determine these terms are defined in this necessary flexibility to tailor the amount the ‘‘real party or parties in interest’’ proceeding, and to provide gross of bidder information made available to revenues calculations for each. On their when parties apply to participate in an applicants to ensure the long-form applications, such applicants auction. competitiveness of each auction. The will be required to disclose any Commission therefore declines to adopt 55. Specifically, all auction applicants additional gross revenues calculations, a provision prohibiting non-disclosure will be required to disclose: (1) A list of any agreements that support small of bidder identities in all future any FCC-regulated business, 10 percent business status, and any investor auctions. or more of whose stock, warrants, protection agreements. The Commission options or debt securities are owned by believes that these reporting 58. Ownership Disclosure Filings. The the applicant; (2) a list of any party requirements will help to assure that Commission believes that permitting holding a 10 percent or greater interest only qualifying applicants obtain the applicants to file ownership information in the applicant, including the specific benefits of our small business when they apply for their first auction, amount of the interest; (3) a list of any provisions, without being unduly which would then be stored in a central party holding a 10 percent or greater burdensome. database and updated each time the interest in any entity holding or 57. Finally, in a related proposal, information changes during or after the applying for any FCC-regulated business PageNet states that Commission should first auction and when applicants in which a 10 percent or greater interest expressly prohibit ‘‘blind bidding’’ (i.e., participate in a subsequent auction, will is held by another party which holds a bidding in which auction participants streamline our application processes 10 percent or greater interest in the do not know the identities or ownership and minimize the burden on auction applicant (e.g., if company A owns 10% information of the other bidders in the applicants. This concept is supported by of company B (the applicant) and 10% auction) in any pending and future the record. For example, CII and of company C, a company holding or auction because it (1) is unfair to Airadigm argue that this approach will applying for an FCC-regulated business, auction participants; (2) encourages benefit auction applicants by reducing the companies A and C must be listed auction abuses; and (3) encourages the time spent preparing auction in company B’s application); (4) the speculation. PageNet contends that applications, and will benefit the name, address and citizenship of any these factors can have a significant Commission by eliminating the need to party holding 10 percent or more of impact upon the competitiveness of the review and analyze duplicative filings. each class of stock, warrants, options or auction and the post-auction The Commission believes that by debt securities, together with the marketplace. In situations in which an requiring ownership disclosure filings, amount and percentage held; (5) the incumbent has already met the we ensure that we receive all the name, address and citizenship of all Commission’s build-out requirements information necessary to evaluate an controlling interests of the applicants, as and must still bid in an auction in applicant’s qualifications. As the

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Commission indicated in the Notice, simplify the bidding process and auction design and to the characteristics however, these requirements could minimize implementation costs of the licenses being auctioned. This result in duplicative filings. For imposed on bidders. The Commission determination can be made in a variety example, where licenses for a service concluded that the best approach would of ways and using a variety of are offered in a series of blocks, as in the be to maintain the flexibility to techniques to estimate the value of the case of broadband PCS, an entity may determine the amount of the upfront spectrum being auctioned; however, as wish to participate in several auctions, payment on an auction-by-auction basis, a general rule we have required an and would be required to disclose the because this balancing may yield upfront payment equal to $0.02 per pop same information a number of times. different results depending upon the per megahertz. As discussed infra, Under the system the Commission particular licenses being auctioned. under the current competitive bidding envisions, when applying to participate 61. Many commenters make specific rules the Commission maintains the in subsequent auctions, applicants will proposals regarding the proper size and discretion to alter the amount of the be permitted to update the database or terms for assessing upfront payments in required upfront payment or to modify certify that there have been no changes future auctions. For example, PageNet the terms under which the upfront in ownership and that the information and CII suggest that the Commission payment is assessed. The Commission contained in the database remains adopt a standard upfront payment rule believes that retaining this discretion correct. The Commission will look to requiring separate upfront payments for provides the Commission with the implement this process in the near each license identified in an applicant’s greatest level of flexibility to determine future as part of our Universal Licensing short-form application. CII contends the appropriate upfront payment System. that this would reduce the number of amount on an auction-by-auction basis. 59. Audits. The only commenters to ‘‘phantom’’ mutual exclusivities (i.e., 63. Refund of Upfront Payments. After address this proposal, PageNet and theoretical frequency conflicts caused considering the issue in light of Airadigm, support this proposal. by the fact that the current auction rules Congress’s 1996 amendment to Section Airadigm requests that applicants and create no financial disincentive to list 309(j)(8)(C) and the comments received licensees subject to audit be afforded licenses in an application on which the in this proceeding, the Commission will sufficient time to provide information to applicant has no bona fide intention to continue our current practice of the Commission and that the bid). In contrast, Airadigm and NPCS returning the upfront payments of Commission issue written findings argue that the Commission should not bidders who have completely following its examination. The require a separate upfront payment for Commission therefore adopts its each license on which an entity elects withdrawn from an auction prior to the proposal, and will modify our rules to bid, as this would limit bidders’ conclusion of competitive bidding. As governing status as a designated entity flexibility to change strategy and force the Commission suggested in the Notice, to expressly provide that applicants and them to reveal their bidding strategy it is unclear whether Congress intended, licensees claiming eligibility for special prior to the start of the auction. In an in amending Section 309(j)(8)(C), to provisions shall be subject to audits by alternate proposal, AirTouch and CII require the Commission to change its the Commission. Such audits will be suggest that the Commission require practice of refunding upfront payments governed by the standards set forth in applicants to increase their upfront to bidders who withdraw during the Sections 403 and 308(b) of the payments as an auction progresses to course of an auction. The Commission Communications Act. 47 U.S.C. 403, equal a percentage of their total bids. continues to believe, however, that the 308(b). The Commission believes that AirTouch argues that this requirement prompt return of upfront payments is in these provisions, as well as the general would reduce the risk of defaults and the public interest, because it prevents provisions of the Administrative discourage parties from submitting unnecessary encumbrances on the funds Procedure Act, will adequately address ‘‘jump bids’’ where they have no of auction bidders, many of whom may Airadigm’s concerns, and the intention of actually winning a be small businesses, after they have Commission therefore declines at this particular license. Similarly, to reduce withdrawn from the auction. In time to adopt specific rules to govern the risk of default, CII recommends that addition, we believe that this practice audits of applicants and licensees when an applicant’s upfront payment minimizes the financial burdens of conducted in the future. drops below a specific percentage of its participating in an auction, because high bid amount, the Commission allow auction participants earn no interest on V. Payment Issues the applicant to increase its deposit to upfront payment funds on deposit with 60. Determination of Upfront Payment a certain percentage of its high bid total the Commission. Moreover, all Amount. In the Competitive Bidding within ten business days. In contrast to commenters addressing the issue Second Report and Order, the these two proposals, Airadigm opposes support our proposal to continue this Commission indicated that the upfront increasing the upfront payment practice. AirTouch proposes that the payment should be set using a formula requirement once a bidder’s bid amount Commission retain an administrative fee based upon the amount of spectrum and exceeds a certain multiple of the based upon the number of rounds an population (or ‘‘pops’’) covered by the original upfront payment amount applicant has remained in the auction license or licenses for which parties because this would create a significant when it refunds upfront payments to intend to bid. The Commission reasoned barrier to small businesses. bidders who have withdrawn. Airadigm that this method of determining the 62. The Commission agrees with and AT&T state that not returning required upfront payment would enable Airadigm and NPCS that it is upfront payments in a prompt manner prospective bidders to tailor their unnecessary to adopt additional rules in circumstances where a bidder has upfront payment to their bidding governing the amount of the upfront withdrawn is akin to a ‘‘fee’’ that strategies. At the same time, however, payment and the terms under which it Congress did not intend to authorize, the Commission noted that determining is assessed. The Commission believes its and that may work to discourage an appropriate upfront payment reasoning in the Competitive Bidding participation in the Commission’s involved balancing the goal of Second Report and Order remains valid, auction program. The Commission encouraging bidders to submit serious, and that the required upfront payment agrees with Airadigm and AT&T, and qualified bids with the desire to should be tailored to the particular conclude that such a fee is

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 2326 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations inappropriate, and therefore, rejects the Commission recognizes in the payment period because we believe that AirTouch’s proposal. Notice, in past auctions there have been extensive relief from initial payment cases where a winning bidder missed obligations could threaten the integrity, 64. Down Payment and Full Payment for the applicable second down payment fairness, and efficiency of the auction Licenses deadline but subsequently made its process. As observed in the Notice, a Level of Down Payments down payment and filed a request late fee of five percent is consistent with 65. The Commission created the down seeking a waiver of the deadline. In general commercial practice and payment requirement in the Competitive some of these cases, the Bureau granted provides some recompense to the Bidding Second Report and Order, in the waivers, subject to payment of a five federal government for the delay and which the Commission concluded that percent late fee. In granting the waivers, administrative or other costs incurred. at the conclusion of the auction, a the Bureau recognized the licensee’s In addition, we believe that a five bidder must tender a significant and good faith and ability to pay as percent fee is large enough to deter non-refundable down payment to the evidenced by its timely remittance of all winning bidders from making late Commission over and above its upfront earlier payments and prompt action to payments and yet small enough so as payment in order to provide further cure the delinquency. not to be punitive. Therefore, applicants 68. The Commission recognizes that who do not submit the required final assurance that the winning bidder will applicants may encounter unexpected payment and five percent late fee within be able to pay the full amount of its or unforeseeable difficulties when trying the 10-day late payment period will be winning bid. The Commission believes to arrange financing and make declared in default, and will be subject that a substantial down payment is substantial payments under strict to the default payment specified in required to ensure that licensees have deadlines. In circumstances that may § 1.2104(g) of our rules. 47 CFR the financial capability to attract the warrant favorable consideration of a 1.2104(g). capital necessary to deploy and operate waiver request or an extension of the 70. Finally, the Commission their systems, and to protect against payment date, the Commission must emphasizes that its decision to permit default. Because it is due soon after the also evaluate the fairness to other late payments is limited to payments close of the auction, the down payment licensees who made their payments in owed by winning bidders who have is a valuable indicator of a license a timely fashion. Two commenters, submitted timely initial down applicant’s financial viability. In Mountain Solutions, Ltd. (‘‘Mountain payments. The Commission continues addition, the Commission believes that Solutions’’) and AirTouch, the only to believe that the strict enforcement of it is important it learns early on in the commenters to address this issue in payment deadlines enhances the licensing process when an applicant detail, support our proposal to permit integrity of the auction and licensing might be unable to finance its winning late payment subject to a standard late process by ensuring that applicants have bid or bids. fee for any licensee not able to make a the necessary financial qualifications. In 66. Several commenters oppose any timely payment. The Commission this connection, the Commission increase in the down payment beyond agrees, and amends § 1.2109(a) to permit believes that the bona fide ability to pay 20 percent of the high bid amount. winning bidders who are required to demonstrated by a timely initial down Airadigm opposes granting the Bureau make final payment on their licenses payment is essential to a fair and the discretion to establish a down within a certain period of time as efficient auction process. Thus, the payment amount because it believes that announced by public notice, to submit Commission has not proposed to modify the Bureau could unfairly disadvantage their payment 10 business days after the its approach of requiring timely small businesses by requiring payment deadline, provided that they submission of initial down payments disproportionately large down payments also pay a late fee equal to five percent that immediately follow the close of an for auctions of particularly capital- of the amount due. Although the auction. The Commission did not intensive services. In addition, Commission suspends the use of propose to adopt a late payment period Airadigm states that granting the Bureau installment payments for the immediate for down payments that are due soon this discretion could complicate future, in the event the Commission after the close of the auction as the applicants’ financing arrangements once again offers installment payments, Commission believes it is reasonable to because down payment amounts could the Commission will also amend expect that winning bidders timely vary with each auction. After § 1.2110(e) to permit auction winners remit their down payments, given that consideration of these comments, the paying for the licenses in installments to it is their first opportunity to Commission concludes that a standard submit their second down payment 10 demonstrate to the Commission their down payment amount of 20 percent is business days after the payment ability to make payments toward their appropriate. Finally, if unusual deadline, provided they also pay a late licenses. Further, if a winning bidder circumstances present themselves in the fee equal to five percent of the amount defaults on its down payment on a context of a particular service, the due. license, the Commission can take action Commission reserves the right to adopt 69. As discussed above, the under § 1.2109(b) relatively soon after a different amount by rule in that Commission’s rules provide that the auction has closed, by, for example, service. winning bidders have ten business days re-auctioning the license or offering it to to make timely payment following Untimely Second Down Payments and the other highest bidders (in descending notification that their licenses are ready Full Payments order) at their final bids. Similarly, the to be granted. The Commission believes Commission will not allow for any late 67. The Commission will amend that in establishing this additional ten submission of upfront payments, as to sections 1.2109(a) and 1.2110(e) of its business day period, during which do so would slow down the licensing rules to permit auction winners to make winning bidders will not be considered process by delaying the start of an their second down payments or final in default, the Commission will provide auction. payments within ten business days after an adequate amount of time to permit the applicable deadline, provided that winning bidders to adjust for any last- Full Payment and Petitions To Deny they also pay an appropriate late fee, minute problems. The Commission 71. The Commission will suspend the without being considered in default. As declines to provide for a lengthier late use of installment payments as a means

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2327 of financing small business regardless of whether petitions to deny between three percent (3%) and twenty participation in our auction program for their applications have been filed. percent (20%) of the defaulted bid the immediate future. As a result, all 73. Default Payments. The amount where a winning bidder or auction winners, including small Commission adopts its proposal to licensee defaults and the defaulted businesses, will be required to submit delete the words ‘‘simultaneous license has yet to be reauctioned. Once the full payment owed on their winning multiple-round’’ from § 1.2104(g), and the license has been reauctioned by the bids shortly after a license is ready to be will apply the default/withdrawal Commission and the total default granted. The Commission will recognize payment procedure to all auction payment can be determined, the that in the past the filing of petitions to designs. Several commenters support Commission will either assess the deny against a winning bidder’s this decision, maintaining that rigorous balance of the appropriate default application(s) has often had the effect of enforcement of the Commission’s payment, or refund any amounts due, as significantly delaying the grant of the payment deadlines is critical to necessary. applicant’s license(s), and as a result, preserving the integrity of the auction 75. Installment Payments the deadline for that applicant to submit and licensing process by ensuring that the balance of its winning bid. However, applicants possess the necessary Late Payments financial qualifications. These in the Balanced Budget Act Congress 76. In order to add certainty to the commenters also suggest that default granted the Commission the authority to installment payment process, the payments are an effective and necessary shorten the petition to deny period, and Commission adopts its proposals from method of discouraging defaults and as a result, to grant licenses much more the Notice to modify its grace period encouraging private market solutions to rapidly. Balanced Budget Act, § 3008. provisions. As discussed above, the licensee financing difficulties. The As an initial matter, consistent with this Commission declines to use installment Commission believes that this legislation, the Commission amends payments for the immediate future as a modification to our general rules §§ 1.2108(b) and (c) of its rules to means of financing small business provide that the Commission shall not governing bidder default will help to maintain the integrity of the auction participation in our auction program. As grant a license earlier than seven days a result, the Commission’s decision with following issuance of a public notice by process by discouraging defaults on the part of bidders, encouraging bidders to regard to late payment fees for the Commission that long-form installment payments effectively will applications have been accepted for make secondary or back-up financial arrangements, and ensuring that default apply only to existing licensees who are filing. 47 CFR 1.2108(b), (c). Also currently paying for their licenses in consistent with the Balanced Budget payments are made in a timely manner. The Commission also believes this installments. From this point forward, Act, the Commission amends this instead of considering individual grace section to provide that in all cases the modification will help to discourage insincere bidding and ensure that period requests, the following system period for filing petitions to deny shall will apply: A licensee who does not be no shorter than five days. In this licenses end up in the hands of those parties that value them the most and make payment on an installment regard, the Commission seeks comment obligation will automatically have an in the Second Further Notice of have the financial qualifications necessary to construct operational additional 90 days in which to submit Proposed Rule Making on whether there its required payment without being are instances in which the Commission systems and provide service. See 47 U.S.C. 309(j)(5). considered delinquent, but will be should provide for a longer period for 74. Our rules provide that where a assessed a five percent late payment fee the filing of petitions to deny or for the winning bidder defaults on a license, as discussed above. If the licensee fails grant of initial licenses in auctionable the bidder becomes subject to a default to make the required payment at the services. payment equal to the difference between close of this first 90-day non- 72. In light of this change in our rules, the amount bid and the winning bid the delinquency period, the licensee will the Commission believes that the next time the license is offered by the automatically be provided a subsequent concerns discussed in the Notice Commission, plus a payment equal to 90-day grace period, this time subject to regarding delays in the granting of three percent of the subsequent winning a second, additional late fee equal to ten licenses and, as a result, in the deadline bid or the amount bid, whichever is percent of the initial required payment. for full payment are substantially lower. See 47 CFR 1.2104(g)(2). In the 77. As proposed in the Notice, under reduced. While applications that are the Competitive Bidding Fifth Report and this system, licensees will not be subject of petitions to deny ordinarily Order, the Commission stated that required to submit a filing to take take longer to resolve than uncontested where the default payment cannot be advantage of these provisions. During applications, the Commission believes determined, the Commission may assess this 90-to-180-day period, the these changes in procedure will reduce an initial default payment ‘‘of up to 20 Commission or its designated collection the risk of frivolous petitions being filed percent’’ of the defaulting bidder’s agent will continue to pursue collection solely for purposes of delay, and will winning bid. We adopt our proposal in of past-due installments and fees. Also enhance our ability to resolve petitions the Notice to employ this practice for all during this time, the licensee will have expeditiously. Finally, the Commission auctionable services. No commenter the opportunity to raise necessary believes that concerns regarding delayed addressed this issue. Although the capital, continue service and payment are outweighed by the risk and Commission provided that this deposit construction efforts, or seek a buyer for uncertainty that would be imposed on amount will be up to 20 percent of the its license(s) that will resume payments. an applicant if it were required to make defaulted bid amount, we note that if a These late payment provisions will its full auction payment while a petition license is reauctioned for an amount apply independently to all installment against its application was still pending greater than the defaulted bid for the payments. Therefore, the late payment and could potentially result in denial of license, the default payment due will be provisions and accompanying late fees the application. As a result, the only three percent of the defaulted bid. will not affect the payment schedule for Commission declines to amend its rules 47 CFR 24.704(a)(2). See also 47 CFR future payments. Thus, even if a to require all winning bidders to make 1.2104(g). Thus, in the future we will licensee elects to take advantage of the their full payments at the same time, assess an initial default deposit of late payment provisions, the licensee

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The following example fees the Commission adopts will accrue declare the licensee in default and illustrates how this system will operate: on the next business day following the subject to the default payments ABC Corp. has a $100,000 installment payment due date and will be payable proposed in the Notice. In contrast, only interest payment due on March 1. If ABC with the next quarterly installment CIRI opposes this liberalization of the Corp. is able to make its payment on March payment obligation. The Commission current grace period rules, requesting 1, then it must remit $100,000 to the emphasizes that at the close of non- instead that grace period relief be made Commission. If ABC Corp. makes its payment delinquency or grace period, a licensee available only when a licensee can anytime from March 2 until May 30 (the end must submit the required late fee(s), all demonstrate that such relief is of the non-delinquency period), then ABC interest accrued during the non- warranted and the public debt will Corp. must remit $105,000 to the delinquency period, and the appropriate Commission to be considered current on its ultimately be satisfied. Although March 1 installment payment. If ABC Corp. scheduled payment with the first Hughes recommends the imposition of a does not make its March 1 payment by May payment made following the conclusion ‘‘significant’’ late fee to the extent that 30, then it must remit $115,000 on or before of the non-delinquency period or grace an applicant misses a payment deadline, August 28. If ABC Corp. does not remit the period. Payments made at the close of Hughes believes that a five to ten required $115,000 by August 29 (the end of any grace period will first be applied to percent late fee is large enough to the 90-day grace period), then it will be satisfy any lender advances as required considered in default and its license will discourage late payments and to ensure under each licensee’s ‘‘Note and that the government is compensated for automatically cancel on August 30 without Security Agreement.’’ Afterwards, further action by the Commission. See 47 its administrative expenses in recouping CFR 1.2110(e)(4)(iii). payments will be applied in the the payment. As an alternative to our following order: late charges, interest proposal in the Notice, GWI proposes ABC Company’s June 1 installment charges, principal payments. As part of payment of $100,000 remains due on that any such late payment fee should the Commission’s spectrum be pro-rated over the 90-day payment June 1 regardless of the payment status management responsibilities, the of the March 1 payment. The late period instead of accruing all at once Commission wishes to ensure that regardless of when the late payment is payment terms apply to June spectrum is put to use as soon as installment payment independently of made, in order to provide an economic possible. The Commission also believes incentive for licensees who are overdue the March payment. Thus, if ABC that licensees should be working to Company does not make its March 1 in their payment obligations to retire the obtain the funds necessary to meet their payment quickly instead of waiting payment until June 1, the total amount payment obligations before they are due due to the Commission on June 1 is until the end of the payment period. In and, accordingly, that the non- addition, GWI suggests that such a pro- $215,000 which consists of the March delinquency and grace periods the payment, the March 5% non- rated payment is fairer to licensees who Commission adopts should be used only inadvertently miss a required payment delinquency late fee, the March 10% in extraordinary circumstances. Thus, as grace period late fee and the June through administrative error or other the Commission emphasized in the unavoidable, unforeseen circumstances. payment. Assuming the licensee remits Notice, a licensee who fails to make the March 1 payment and payment within 180 days sufficient to 79. As an alternative to the accompanying March late fees of pay the late fees, interest, and principal, Commission’s proposals in the Notice, $115,000 to the Commission by August will be deemed to have failed to make Airadigm contends that following the 29, then the total amount due to the full payment on its obligation and will first 90-day non-delinquency period, Commission on September 1 will be be subject to license cancellation licensees should be given a second 90- $215,000 which consists of the June pursuant to § 1.2104(g)(2) of the day period with a five percent late fee, installment payment of $100,000, the Commission’s rules. followed by a third 90-day grace period June 5% non-delinquency late fee, the 78. Several commenters support the with a 10 percent late fee. ISTA believes June 10% grace period late fee and Commission’s efforts to provide that a rule whereby any license is September installment payment of licensees with predetermined non- cancelled at the close of the second 90- $100,000. delinquency periods without requiring day grace period is draconian, and that ABC Company may elect to make late the submission of a formal grace period such a ‘‘hard-and-fast’’ automatic payments and pay the accompanying request. In addition, many of the cancellation rule would doom many late fees on the March and June commenters addressing this issue, small businesses. GWI opposes the payments. However, ABC Company including AMTA, Hughes, AirTouch, imposition of an additional 10 percent must remit $115,00 representing the Mountain Solutions and CII support the late payment fee where licensees require required March payment and imposition of a late payment fee similar an additional 90-day late payment accompanying March late fees by to that imposed in the broadband F period. The Commission declines to August 29 (the end of March’s 90-day block auction, in order to create a adopt these alternate proposals. As the grace period) or it will be considered in significant incentive for timely payment Commission indicated in the Notice, the default and its license will of installment obligations. CII believes grant of a grace period is an automatically cancel on August 30 that modifying our current grace period extraordinary remedy and we wish to without further action by the procedures will provide licensees with encourage licensees to seek private Commission. Furthermore, ABC knowledge in advance of the extent of market solutions to their capital Company must remit and additional any relief that will be forthcoming from problems before the payment due date. $115,000 representing the required June the Commission to a licensee who In this regard, the Commission notes payment and accompanying June late misses an installment payment. that it has an obligation under the Debt fees by November 29 (the end of June’s AirTouch believes that any licensee Collection Improvement Act to enforce 90-day grace period) or it will be who fails to make payment within 180 payment obligations owed to the federal

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2329 government. See Debt Collection has emphasized that the terms of the to § 0.459 of the Commission’s rules, Improvement Act, Pub. L. 104–134, installment payment program will be and that such confidential treatment § 3100(j)(i), 110 Stat. 1321 (1996), governed by current Commission rules should be sufficient to safeguard the codified at 31 U.S.C. 3711(a) (‘‘DCIA’’). and regulations, as amended. For privacy interests of licensees, while still 80. The Commission believes that the example, in awarding licenses to C making the terms of any workout automatic grace period provisions we block licensees paying for their licenses available for public scrutiny. As an adopt today provide licensees with in installments, the Commission initial matter, because the Commission adequate financial incentives to make indicated in the associated ‘‘Note and adopts its proposals providing for installment payments on time, while at Security Agreement’’ that the terms of automatic grace periods, the the same time creating increased the installment plan would be governed Commission does not envision licensees certainty that will help licensees pursue by and construed in accordance with filing grace period requests under private market solutions to their then-applicable Commission orders and normal circumstances from this point financing difficulties. These provisions regulations, as amended. The forward. As a result, the Commission also will discourage licensees from Commission also believes that these believes that CIRI’s concerns about the attempting to maximize their cash flow licensees should obtain the benefit of Commission making public a licensee’s at the government’s expense by increased certainty that provisions for request for grace period relief are moot. submitting a required installment automatic grace periods provide. This Moreover, because from this point payment after it is due. Several decision is supported by Mountain forward a licensee’s taking advantage of commenters agree with this assessment. Solutions, who requests that current our late payment provisions will be an At the same time, these provisions will licensees obtain the benefits of any administrative matter processed by the eliminate uncertainty for many loosening of the late payment fee and Commission’s loan servicer, and not a licensees who are seeking to restructure grace period rules. formal waiver request, aside from other debt contingent upon the results 82. As provided in the Second Report instances where a licensee is declared in of the Commission’s installment and Order and Further Notice of default, there will be no public notice of payment provisions. In addition, this Proposed Rule Making in this docket, a licensee’s payment status. The license system will ease the burden on the installment payments for C and F block is cancelled automatically under such Commission of considering individual licensees will resume effective March circumstances. In contrast, for licensees grace period requests where 31, 1998. See Amendment of the who have previously filed grace period Commission or its designee may not Commission’s Rules Regarding requests consistent with the have the necessary resources to evaluate Installment Payment Financing for Commission’s current rules and a licensee’s financial condition, Personal Communications Services procedures, the Commission will business plans, and capital structure (PCS) Licensees, Second Report and continue its current practice of making proposals. The Commission recognizes Order and Further Notice of Proposed the request public when a decision is that some commenters oppose the Rule Making, WT Docket No. 97–82 62 released granting or denying the request, imposition of a late fee on overdue FR 55348 (October 24, 1997) (‘‘Second except to the extent that any request by installment payment, and in particular Report and Order and Further Notice of the licensee for confidential treatment is on the 90-day non-delinquency period. Proposed Rule Making’’). Under the granted pursuant to § 0.459 of the However, this approach is consistent Commission’s decision to reinstate Commission’s rules. See 47 CFR 0.459. with the standard commercial practice installment payments for these The Commission further clarifies that of establishing late payment fees and licensees, the Commission provided such licensees are not deemed to be in developing financial incentives for them with one automatic 60-day non- default on these licenses until such time licensees to resolve capital issues before delinquency period following the March as the Bureau issues a decision on these payment due dates. This approach also 31, 1998, deadline, during which time grace period requests. Licensees whose is consistent with the provisions of the they will not be considered delinquent requests for a grace period are denied DCIA, which requires that the in their payment obligations. As the will have ten (10) business days to make Commission notify the Secretary of the Commission indicated in the Second the required payment or be considered Treasury and commence debt collection Report and Order and Further Notice of in default. procedures where a party is more than Proposed Rule Making, the Commission 180 days past due on any outstanding will not entertain any requests for Defaults on Installment Payments debt owed to a federal agency. See 31 extension of the March 31, 1998 84. The Commission will not adopt its CFR 3711(g)(1). deadline beyond an automatic 60-day tentative conclusion to apply the default 81. The Commission recognizes that a non-delinquency period, so that for C provisions of § 1.2104(g) to licensees number of commenters oppose the and F block licensees all required who default on an installment payment. application of these provisions to payments must be submitted no later Most commenters addressing the issue current licensees. In particular, GWI and than May 30, 1998. Only those licensees oppose this proposal. For example, IVDS Enterprises argue that to the extent making a timely payment of all amounts Pocket submits that default payments the Commission adopts a late payment due, as set forth in the Second Report assessed later in the license term fee, it should limit the imposition of and Order will be permitted to take become highly arbitrary and unduly such a fee to licenses issued in future advantage of the late payment burdensome. Pocket also contends that auctions. However, the Commission’s provisions the Commission adopts such payments are greater than those recent experience with the installment today. See 47 CFR 1.2110. traditionally required for secured payment program has shown the 83. In commenting on these creditors and create substantial importance of ensuring that all modifications to the grace period disincentives for investors and creditors licensees, including current licensees, provisions, CIRI also proposes that the who might otherwise be interested in have adequate financial incentives to Commission make public the terms of providing financing for licensees. make installment payments on time. any workouts or debt relief provided to Pocket also notes that any default The Commission notes that in awarding licensees. CIRI notes that parties may payment assessed disadvantages a licenses in the past to entities choosing request confidential treatment of licensee’s other creditors, which also to pay in installments, the Commission sensitive financial information pursuant makes it more difficult for licensees to

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In decision will apply only to existing cancel without further action by the contrast, AirTouch supports our licensees who are currently paying for Commission, the licensee will become tentative conclusion that licensees that their licenses in installments. subject to the default payment set forth ultimately fail to fulfill their installment 87. The Commission’s decision not to in § 1.2104(g) of our rules, and the payment obligations despite the pursue cross default remedies against Commission will initiate debt collection availability of a 90-day non-delinquency current licensees who default on an procedures against the licensee and period and a subsequent, automatic 90- installment payment is supported by the accountable affiliates. 47 CFR 1.2104(g), day grace period, should be declared in majority of commenters. For example, 1.2110(e)(4)(iii). See also 31 U.S.C. default, and in turn be made subject to Airadigm contends that it is unfair to Chapter 37; 4 CFR Parts 101–105; 47 the default payments proposed in the jeopardize an entire business because of CFR Part 1, Subpart O. Notice. a default on one license. Similarly, ISTA 85. The Commission has considered argues for separate treatment of separate VI. Competitive Bidding Design, the comments of those who oppose the services, regardless of ownership, lest a Procedure, and Timing Issues proposed assessment, and find that an failure in one business cause failure in 89. Balanced Budget Act of 1997 additional payment requirement for unrelated businesses. IVDS Enterprises Notice and Comment Procedures. The licensees defaulting on installments is proposes that licensees be able to Commission believes that in the past not necessary to achieve our stated discontinue installment payments on a our service-specific rule making process objectives. The Commission’s current particular license and allow that license has served the purpose of adequately rules and installment payment terms are to be cancelled or revoked. IVDS ensuring that interested parties have adequate to discourage defaults and Enterprises believes that such a decision sufficient time to familiarize themselves encourage licensees to find private should not affect the licensee’s other with the rules and procedures to be market solutions when they face licenses, whether in the same or other employed in an auction prior to the financial difficulties. The Commission services, where the licensee has made application deadlines and start date of also believes that the rules it adopts timely installment payments. that auction. The Commission providing for a 90-day non-delinquency Alternatively, Pocket believes that the nevertheless believes that this period followed by a subsequent, Commission should reserve the legislation requires that the Commission automatic 90-day grace period, subject authority to impose cross defaults on a provide an additional opportunity for to appropriate late fees of five percent case-by-case basis only for licensees that input from potential bidders prior to the for the 90-day non-delinquency period have demonstrated bad faith. issuance of detailed auction-specific and 10% for automatic 90-day grace 88. The Commission recognizes that information by the Bureau. To date, the period, payable at the conclusion of some commenters strongly advocate a Bureau has served as the primary point these periods serve these goals without policy of cross defaults in this context. of contact with potential bidders and substantially risking delays or These commenters suggest that such a other parties interested in issues relating disruption in service to the public. In policy (1) prevents speculation during to each upcoming auction, and this has particular, the Commission believes that the auction and cherry-picking (e.g., worked well. In light of the typically this certainty regarding the selectively defaulting on some licenses time-sensitive nature of most issues Commission’s treatment of licensees while keeping others) after the auction arising in the weeks prior to the start of needing extra time to make their concludes, (2) encourages auction an auction, the Bureau has been installment payments will increase the participants to find private market equipped to make determinations and likelihood that licensees and potential solutions to financial shortfalls, and (3) respond rapidly to potential bidders’ investors will find solutions to capital is consistent with commercial lending concerns. Consistent with the problems before a default occurs. The policies. The Commission believes, provisions of the Balanced Budget Act, risk of losing its license should provide however, that the default provisions and to ensure that potential bidders a licensee a strong incentive to avoid contained in § 1.2104(g)(2) serve as an have adequate time to familiarize default. If, however, a default does adequate incentive to discourage themselves with the specific provisions occur, the conditions on the face of each speculation and encourage licensees to that will govern the day-to-day conduct license and the terms of the notes and pursue non-default solutions to of an auction, the Commission directs security agreements executed by financial difficulties. The Commission the Bureau, under its existing delegated licensees provide the Commission also emphasizes that our decision on authority, see 47 CFR 0.131(c), 0.331, appropriate remedies that will ensure this matter only addresses default in the 0.332, to seek comment on a variety of that defaulted licenses are returned to context of installment payments, and auction-specific issues prior to the start the Commission for reauction and that does not affect our policy with regard to of each auction. all outstanding debts, as well as the defaults on down payments. In addition, 90. The Commission directs the Commission’s costs, are recoverable. by making licensees who default on an Bureau to seek comment on specific installment payment subject to the mechanisms relating to day-to-day Cross Default in the Context of default payment set forth in auction conduct including, for example, Installment Payments § 1.2104(g)(2), the Commission created the structure of bidding rounds and 86. After consideration of the an additional deterrent to licensees stages, establishment of minimum comments in this proceeding, The considering default as a solution to opening bids or reserve prices, Commission concludes that it will not financing shortfalls. The Commission minimum acceptable bids, initial pursue a policy of cross default (either believes that this policy will promote maximum eligibility for each bidder, within or across services) where the goals of section 309(j) by not activity requirements for each stage of licensees default on an installment punishing otherwise successful the auction, activity rule waivers, payment. Because the Commission will licensees for failures in one market, and criteria for determining reductions in

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2331 eligibility, information regarding bid progress more rapidly and efficiently. particularly in the case of complex withdrawal and bid removal, stopping The Commission has successfully auctions of multiple licenses, it is one rules, and information relating to employed click box bidding in the means of helping auctions to progress auction delay, suspension, or recently completed 800 MHz SMR more efficiently. Under the current cancellation. The Commission directs auction, and plans to employ it in the simultaneous multiple-round auction the Bureau to afford interested parties a forthcoming LMDS auction. rules, each round of bidding contains a reasonable time, in light of the start date 92. The Commission delegates to the discrete bidding period during which of each auction and relevant pre-auction Bureau the authority to determine bidders cannot see the actions of other filing deadlines, to comment on auction- whether the public interest will be bidders. Bidders must wait until the end specific issues. In this regard, the served by ‘‘real time’’ bidding in a of each round to see the bids placed by Commission notes that it has been the particular auction. Most commenters other bidders and determine their status Bureau’s practice to release the public oppose the use of ‘‘real time’’ bidding, as high bidder. In contrast, an open, notice providing details concerning arguing it may be difficult for bidders to continuous bidding round—in which each upcoming auction sufficiently in react quickly enough to ensure that in bidders know when their bid has been advance of the short-form filing each bidding round they make new high exceeded and are free to bid again—can deadline (e.g., 30 days prior to the bids on the necessary percentage of their be used to reduce the delay inherent in deadline) to provide interested parties bidding eligibility to meet their activity the current design where a bidder must with an opportunity to develop business requirement. These commenters also wait until the next discrete round to plans, assess market conditions and believe that the somewhat accelerated react to the actions of other bidders. evaluate the availability of equipment. pace of ‘‘real time’’ bidding may leave 95. The Commission notes that some Also consistent with previous practice, less time to craft informed bidding commenters express concern that the the Commission recognizes that the strategies during the auction. widespread use of ‘‘real time’’ bidding Bureau needs the flexibility to 93. As mentioned above, the ‘‘click- would increase the administrative costs announce, at any time in the weeks box bidding’’ format should of participating in the auction due to the leading up to the start date of each significantly improve a bidder’s ability incentive to stay on-line during the auction, any minor, non-substantive to react quickly. Further, should the continuous bidding period and thereby amendments or clarifications to the Commission determine to employ ‘‘real- work to exclude smaller entities that specific mechanisms set forth in time’’ bidding in the future, the may lack the resources to devote to a auction-related public notices or the Commission believes that the issues concentrated bidding period or to stay Bidder Information Package. The involving meeting activity requirements on-line during the entire bidding period. Commission believes that this process is will be alleviated by our proposal in the The Commission agrees with Notice to open a discrete closed bidding consistent with the requirements of commenters that under some period after each fixed period of ‘‘real section 3002(a)(1)(B)(iv) of the Balanced circumstances the costs of participating time’’ bidding (when only standing high Budget Act, and will afford potential in an auction in which bidders are bids from the previous round and new bidders adequate notice, as well as an required to be ‘‘on-line’’ may discourage high bids from the current round count opportunity to comment on the Bureau’s the participation of small businesses. in determining the bidder’s activity intentions regarding issues relating to The Commission therefore concludes level). During this closed bidding the day-to-day conduct of each auction. that the per minute charge for bidding period, bidders will be able to submit ‘‘on-line’’ should be reexamined, and 91. ‘‘Real time’’ Bidding. The valid bids (bids that meet or exceed the delegate to the Bureau that authority to Commission will adopt its proposal in minimum accepted bid) to ensure that implement such a reduced fee in the the Notice to allow for ‘‘real time’’ they have the opportunity to meet their future, if appropriate. bidding as an alternate design activity requirements for the round. 96. No commenters addressed the methodology in our rules. After careful Following the discrete closed bidding Commission’s tentative conclusion in consideration of the comments received period, the Commission will post the that Notice that because ‘‘real time’’ in this proceeding, as well as its final round results for the period and auctions are a variation of the experience in conducting 15 auctions to make all bids available to the public. simultaneous multiple-round auction date, the Commission concludes that This discrete period should help to design established in our rules, many of ‘‘real time’’ bidding will allow auctions eliminate any risks of not meeting the same procedures (i.e., upfront to proceed more rapidly because it will eligibility requirements or having time payments to determine eligibility, allow bidders immediate feedback on to formulate bidding strategies which activity requirements that apply to each new high bids. The Commission also commenters suggest may be associated round, minimum bid increments, and a notes that in an effort to simplify the with ‘‘real time’’ electronic bidding. In stopping rule) should apply. These auction process and prevent ‘‘gaming’’ particular, this period will help to procedures have proven workable and of bids, the Commission has recently provide bidders sufficient time to meet easily understood by bidders in the modified its electronic bidding process eligibility requirements and will context of our simultaneous multiple- by implementing ‘‘click-box bidding.’’ minimize the risks, suggested by some round auction design, but some This feature, which replaces the field commenters, of the submission of modifications to these procedures may where bidders previously typed their erroneous bids. be necessary if the Commission employs dollar bid amount with a ‘‘click on 94. One of the greatest advantages to ‘‘real time’’ bidding. The Commission check box to bid’’ field (where the only ‘‘real time’’ bidding is that it allows concludes that the Bureau should bid amount allowed is at the minimum bidders to obtain immediate feedback undertake this task. acceptable bid) no longer allows bidders on new high bids, withdrawn high bids 97. Consistent with section 3002 of to type a bid amount on the Bid and minimum accepted bids, and the Balanced Budget Act, the Submission screen. As such, ‘‘click-box thereby provides them with the Commission directs the Bureau to seek bidding’’ can work well in a ‘‘real-time’’ opportunity to immediately respond to comment from the public on auction- bidding context because bidders can this information and move licenses specific issues (i.e., duration of bidding more rapidly respond to the bids of toward their final valuations more rounds and activity requirements) prior other bidders, permitting an auction to quickly. The Commission believes that, to the start of each auction. The

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Commission believes that this practice 100. Minimum Opening Bids and technologies and services and of seeking comment on such issues prior Reserve Prices. Several commenters promoting economic opportunity and to the start of each auction will oppose the use of minimum opening competition (see 47 U.S.C. 309(j)(3)) adequately address any additional bids. However, the Balanced Budget Act have not been eliminated, and the concerns associated with the use of establishes a presumption in favor of a Commission must continue to balance ‘‘real time’’ bidding. The Commission required minimum opening bid or and pursue them all. Therefore, the also notes that it seeks, on an ongoing reserve price. Balanced Budget Act, Commission concludes that the new basis, to enhance and improve our section 3002(a)(1)(C)(iii). The provision does not call for traditional bidding processes. The Commission Commission therefore adopts its reserve prices. Rather, it calls for an believes that the Bureau should explore proposal in the Notice to delete the term added protection that licenses will not ‘‘real time’’ bidding consistent with the ‘‘suggested’’ from § 1.2104(d). The be assigned at unacceptably low prices. requirement under section 309(j) that Commission also clarifies that the 102. The Commission believes that the Commission experiment with Bureau has the authority to seek the Bureau should have the discretion to different bidding methodologies. See 47 comment on minimum opening bids employ either or both of these U.S.C. 309(j)(3). and reserve prices and to establish such mechanisms for future auctions. The 98. Combinatorial Bidding. The mechanisms for each auction, consistent Commission directs the Bureau to seek Commission did not specifically seek with its role in managing the auction comment on the use of a minimum comment in the Notice on the use of process and setting valuations for other opening bid and/or reserve price, as it combinatorial bidding as an auction purposes (e.g., setting upfront payment will do for a variety of auction-specific design methodology. The Commission’s amounts). The Bureau shall establish a issues, prior to each auction. In current Part 1 rules already provide for minimum opening bid and/or reserve addition, the Bureau should seek the use of combinatorial bidding as one price for each auction, unless, after comment on the methodology to be of our competitive bidding design comment is sought prior to a particular employed in establishing each of these options. See 47 CFR 1.2103(b). In auction, it is determined that a mechanisms. Among other factors, the addition, the Commission was directed minimum opening bid or reserve price Bureau should consider the amount of by Congress in the Balanced Budget Act would not be in the public interest. spectrum being auctioned, levels of of 1997 to consider the use of 101. The terms ‘‘minimum opening incumbency, the availability of combinatorial bidding as an alternative bid’’ and ‘‘reserve price’’ are technology to provide service, the size auction design that could be used, in of the geographic service areas, issues of certain instances, as a means of traditionally different, and are interference with other spectrum bands, speeding the auction process. employed for different purposes. A and any other relevant factors that could Specifically, the Balanced Budget Act reserve price is defined as an absolute reasonably have an impact on valuation requires the Commission, for testing minimum price below which an of the spectrum being auctioned. purposes, to design and conduct an auctioneer will not sell an object being auction in which a system of auctioned. It may be disclosed to 103. Maximum Bid Increments. combinatorial bidding is used. Balanced bidders before an auction or during an Several commenters suggest that jump Budget Act; 47 U.S.C. 309(j)(3)(i). auction, or it may be kept secret, so that bidding is not a problem of serious 99. The Commission has insufficient a ‘‘winning’’ bidder does not actually concern. Some theoretical literature, information to determine how this find out if the object has been won until however, suggests that bidders could relatively new bidding methodology after the auction has closed. Auctioneers use jump bidding to manipulate the might be used to improve our spectrum generally employ reserve prices to order auction process and potentially reduce auction program. The Commission will to maximize the revenue earned from an efficiency of the auction. For example, seek comment on a number of issues auction. A minimum bid is a minimum a general principle of auction theory is relating to combinatorial bidding, and value below which bids will not be that the auction mechanisms that will more thoroughly address this issue accepted in the first round of an perform the best are those which are once the record is complete. The auction. The level of a minimum able to induce bidders to reveal the most Commission has also awarded a opening bid is not unchangeable like a information. To the extent that jump research and development contract to a reserve price, but may be reduced at the bids enable bidders to conceal private sector consultant to examine discretion of the auctioneer if no bids information, the phenomenon moves us theoretical and applied combinatorial are made at the existing level. The away from the informational advantages bidding approaches where licenses primary purpose of a minimum opening of an ascending bid (multiple round) exhibit strong synergies and bidders bid is to speed up the course of an auction in the direction of a first-price have overlapping preferences (i.e., auction. However, a minimum bid also sealed bid (single round) auction. As prefer different packages of licenses). can serve as a revenue-enhancing ISTA recognizes, jump bidding can The contractor will also evaluate the function like a reserve price, because if complicate bidding strategy and deny most appropriate of the theoretical and bids will not be accepted below a bidders information about the number applied approaches to combinatorial certain level, they will also not be sold of bidders who would be willing to pay bidding for spectrum auctions and below that level. That is, a minimum prices between the minimum acceptable address a number of concerns raised by opening bid effectively functions as a bid and the jump bid. In the absence of the Commission and other interested reserve price unless or until it is information about the bidders who parties. The Commission’s goal in reduced. Regarding the level of reserves would be willing to participate at awarding the contract is to allow private or minimum bids, the Commission does intermediate bids, other bidders may sector and government auction experts not believe that the Balanced Budget feel compelled to shade their bids more to address these concerns and Act provision means that it should now than they would otherwise. This investigate the possible effects of the use be attempting to maximize the revenue behavior is an attempt to avoid the of combinatorial bidding on the auction earned in all future spectrum license ‘‘winner’s curse,’’ that is, the tendency process, including the Commission’s auctions. The other auction goals in the for the winner to be the bidder who fulfillment of the objectives of Section Act, such as ensuring the deployment most overestimates the value of the item 309(j) of the Communications Act. and rapid deployment of new being auctioned.

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104. As an initial matter, the withdrawals as they are critical to Commission will modify § 1.2109(b) to Commission notes that recent changes providing applicants with the flexibility reserve the discretion to either reauction designed to improve the Commission’s to correct bids that are placed in error a defaulted license or offer it to the electronic auction bidding process and to quickly change bidding strategy. other highest bidders (in descending eliminate the dangers that a maximum PageNet contends that concerns about order) at their final bids. 47 CFR bid increment is designed to avoid (e.g., strategic withdrawals intended to 1.2109(b). Several commenters support jump bidding). In an effort to speed the produce anti-competitive results are not the reauction of defaulted licenses auction process and eliminate sufficient to eliminate the bidding because it helps to ensure that the price unwarranted ‘‘gaming’’ of our processes, flexibility that bid withdrawals provide. paid for a license is the current price, the Commission has simplified the Finally, AirTouch suggests that the rather than the price that was applicable electronic auction bidding process by Commission permit bid withdrawals at at the time the original auction implementing ‘‘click-box bidding.’’ As any time, subject to certain conditions. occurred. Only two commenters oppose discussed above, this feature permits In particular, AirTouch recommends reauction in all circumstances. bidders to enter a bid only at the that: (1) All bid withdrawals should be Airadigm and AMTA oppose providing maximum bid increment as determined subject to applicable bid withdrawal the Commission with the discretion to by the Commission, and thus makes payments; (2) a bidder withdrawing a reauction defaulted licenses because bidding tactics such as jump bidding bid should not be permitted to regain they believe that awarding licenses to impossible. Nevertheless, the eligibility on any bidding units lost as the next highest bidder will be faster Commission will reserve the discretion a result of the withdrawal; and (3) the than reauctioning. However, as the to employ a maximum bid increment high bidder in the round prior to the Commission stated in the Notice, the should it return to an auction format in withdrawn bid should be permitted to Commission has developed a which jump bidding can in any way bid again on the license, and to computerized auction system and decrease the competitiveness of an reacquire eligibility for bidding units conducted numerous auctions and now auction. In this regard, the Commission necessary to resubmit the new bid. believes that the costs of a reauction, disagrees with NextWave’s suggestion 107. In contrast, NextWave supports a even for a small number of relatively that by disallowing jump bids as one limitation on bid withdrawals. low value licenses, is generally method by which bidders may obtain NextWave states that bid withdrawals minimal. The Commission also believes information about each other the are a necessary tool, but in some that the planned use of regularly Commission risks prolonging an instances, bid withdrawals are used for scheduled quarterly auctions will auction. On the contrary, the insincere bidding designed to ‘‘game’’ ensure rapid reauction. Commission has alternate methods (e.g., the auction. To protect against such 109. Further, the Commission notes ‘‘click-box bidding,’’ employing misuse, NextWave proposes, for that re-offering a defaulted license to the minimum bid increments and activity example, that the Commission create a next highest bidder (in descending rules and increasing the number of fourth stage of the auction, during order) at their final bids may not ensure rounds per day) to ensure that auctions which a bidder who has withdrawn that the license will be awarded to the close within a reasonable time. from a particular market would be bidder who values it the most highly. In 105. Bid Withdrawal Payments. As prohibited from re-bidding in the same particular, as the license is offered to discussed above, the Commission market. In the past, the Commission has bidders at the next highest bids, other recently implemented ‘‘click-box recognized that allowing bid parties can argue that they would pay bidding’’ in an effort to improve the withdrawals facilitates efficient more for the license if given the auction process and eliminate erroneous aggregation of licenses and pursuit of opportunity. In addition, when more bids. The Commission also recently efficient backup strategies as than one license is being auctioned, modified the electronic bidding format information becomes available during aggregation strategies may shift during to limit withdrawals. As a result of such the course of an auction. Nevertheless, the course of the auction, affecting the changes, the types of erroneous bids the Commission also has recognized value placed on any individual license discussed in the Notice cannot occur that bidders may, in some instances, by a particular bidder. As the under our new bidding format. The seek to remove bids for improper Commission discussed in the Notice, Commission therefore concludes that its purposes, such as to delay the close of when it first adopted rules governing proposal regarding decreased bid the auction for strategic purposes. For the licensing of defaulted licenses, the withdrawal payments in cases of this reason, the Bureau has traditionally Commission stated that ‘‘[i]n the event erroneous bids is moot. retained the discretion to limit that a winning bidder in a simultaneous 106. Misuse of Bid Withdrawals. withdrawals as part of the management multiple-round auction defaults on its Several commenters oppose the of an auction. To prevent strategic down payment obligations, the Commission’s proposal to place limits delays to the close of the auction, or Commission will generally reauction the on bid withdrawals in certain other abuses, the Bureau should license either to existing or new circumstances as a means of avoiding exercise its discretion assertively. In applicants.’’ Noting that in some strategic withdrawals that are intended addition, the Bureau should consider circumstances the costs of conducting a for anti-competitive purposes. Both limiting the number of rounds in which reauction may not always be justified, AT&T and Merlin argue that the ability bidders may withdraw bids, and to the Commission reserved the discretion to withdraw bids is critical to a bidder’s prevent bidders from bidding on a in cases in which the winning bidder auction strategy. While they recognize particular market if the Bureau finds defaults on its down payment obligation the difficulty in determining the true that a bidder is abusing the to offer a defaulted license to the highest intent behind a withdrawn bid, these Commission’s bid withdrawal losing bidders (in descending order of commenters suggest that the procedures. These are among the types their bids) at their final bids if ‘‘only a Commission continue to monitor each of issues on which the Bureau will seek small number of relatively low value auction carefully, and address abusive comment prior to the start of each future licenses are to be reauctioned * * *.’’ behavior on a case-by-case basis. auction. 110. Nextel and others suggest that Similarly, PageNet states that the 108. Reauction Versus Offering to the Commission should retain the Commission should not limit bid Second Highest Bidder. The discretion to award defaulted licenses to

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 2334 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations the next highest bidder only when the certain restrictions on communication necessary. The Commission believes default occurs soon after the close of the concerning the applicants in which it that applicants are no more likely to auction and there has been no holds an attributable interest or with make false certifications about the opportunity for parties to file petitions which it has entered into a bidding exception which the Commission to deny. Nextel suggests that in such an arrangement. adopts today than about other instance, there is little risk of a 113. After considering the comments information on the form. As discussed significant change in market price, and filed in response to our proposals in the infra, the Commission also reminds no risk of encouraging frivolous Notice, the Commission has decided to prospective applicants that the petitions to deny. The Commission is adopt a second exception to our general Commission will conduct a detailed aware of the dangers of adopting a rule rules prohibiting collusion. See 47 CFR investigation in the event it becomes which could have the unfortunate 1.2105(c). Specifically, the Commission aware of a possible violation of the anti- consequence of encouraging the filing of will permit a holder of a non-controlling collusion rule, and that violations may frivolous petitions to deny. attributable interest in an applicant to result in the loss of the down payment Nevertheless, the Commission believes obtain an ownership interest in or enter or full bid amount, the cancellation of that by reserving the discretion to either into a consortium arrangement with licenses, and preclusion from reauction defaulted licenses or award another applicant for a license in the participation in future auctions. them to the next highest bidder, the same geographic area provided that the 115. Commenters in both the Paging Commission will be in the best possible original applicant has withdrawn from proceeding and in this proceeding position to determine which option the auction, is no longer placing bids, support the creation of a safe harbor for serves the public interest in each and has no further eligibility. To meet discussions of certain non-auction particular situation. the requirements of this exception, the related business matters between attributable interest holder will be applicants for the same license areas. In VII. Anti-Collusion Rules required to certify to the Commission general, these commenters argue that (1) 111. The Commission has taken this that it did not communicate with the the Commission’s anti-collusion rules opportunity in revisiting our general new applicant prior to the date the cause unnecessary confusion in their competitive bidding procedures to original applicant withdrew from the current form, (2) the purposes of the examine the effectiveness of the anti- auction, and that it will not convey anti-collusion rules would not be collusion rule in the 15 auctions the bidding information, or otherwise serve threatened by such a safe harbor, and (3) Commission has conducted to date. The as a nexus between the previous existing antitrust laws and policies will Commission continues to believe that its applicant and the new applicant. As adequately accomplish the goal of anti-collusion rules are necessary to stated in the Notice, this additional protecting the competitiveness of the deter bidders from engaging in anti- exception will further facilitate the flow bidding process. As the auction program competitive behavior. Nevertheless, of capital to auction applicants by has evolved, the Commission has after careful review of the comments encouraging, and providing the continued to refine and clarify for received in this proceeding, the flexibility necessary for, non-controlling bidders the operation and impact of the Commission has determined that some investors to invest in other auction anti-collusion rule upon bidder conduct modifications to § 1.2105(c) can be applicants if their original applicant during the course of an auction. Prior to made which will benefit bidders in fails to complete the auction. The the start of the broadband PCS D, E and several respects, without jeopardizing majority of commenters addressing this F block auction, the Bureau received the competitiveness and overall proposal agree that it will encourage numerous inquiries concerning the integrity of our auction program. investment in auction applicants impact of these rules upon business 112. In the Collusion MO&O, the without threatening the overall contacts between current broadband Commission revisited the anti-collusion competitiveness of the auction process. PCS licensees and auction winners and rules prior to the start of the PCS 114. Only Nextel and PageNet oppose eligible participants in the ongoing auctions, and concluded that allowing this exception, citing the potential for broadband PCS D, E and F Block holders of non-controlling attributable collusive activity when an investor in auction. In response to these inquiries, interests in an applicant greater an applicant that has chosen to the Bureau released a Public Notice flexibility to form agreements with other withdraw from the auction explores providing guidance on these business applicants would help applicants to possible investments in other negotiations in the context of our anti- acquire the additional capital necessary applicants, thus learning bidding collusion rules. The Bureau emphasized to bid successfully for licenses. See strategies of multiple auction that § 1.2105(c) may affect the way in Implementation of Section 309(j) of the participants. In addition, PageNet which auction applicants conduct their Communications Act—Competitive contends that this exception could routine business during an auction by Bidding, WT Docket No. 93–253, encourage speculation which would placing significant limitations upon Memorandum Opinion and Order, 59 threaten the integrity of the auction their ability to pursue business FR 64159 (December 13, 1994) process and ultimately result in lower opportunities involving services in the (‘‘Collusion MO&O’’). The Commission prices paid for the spectrum. However, geographic areas for which they have therefore created an exception to the after balancing these factors, the applied to bid for licenses. These general rule contained in § 1.2105 to Commission believes that the benefits of interpretations have provided sufficient permit a holder of a non-controlling this certification requirement, in guidance concerning the types of non- attributable interest in one applicant for particular the likelihood that auction auction related communications which a particular license or licenses to obtain applicants will be able to attract are permitted under § 1.2105(c), and the ownership interests in or enter into increased investment, exceed any Commission therefore declines to create consortium arrangements with a second possible disadvantages. The such a safe harbor. applicant for a license in the same Commission requires that auction 16. The Commission affirms the geographic service area. See 47 CFR applicants certify to the truthfulness Bureau’s interpretation of this aspect of 1.2105(c)(4). The attributable interest and accuracy of a number of issues on the anti-collusion rule. As a general holder must certify to the Commission their Form 175 applications, and to matter, the anti-collusion rule does not that it has observed and will observe make minor amendments when prohibit non auction-related business

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2335 negotiations between auction applicants antitrust laws, and that conduct that is course, pre-grant construction will be who have applied for the same permissible under the Commission’s subject to any service-related geographic service areas. The rules may be prohibited by the antitrust restrictions, including but not limited to Commission cautions auction statute. In addition, the Commission antenna restrictions, environmental applicants, however, that discussions reminds prospective auction requirements, and international concerning, but not limited to, issues participants it will continue to coordination. Any applicant engaging in such as management, resale, roaming, scrutinize carefully any instances in pre-grant construction activity does so interconnection, partitioning and which bidding patterns suggest that entirely at its own risk, and the disaggregation may all raise collusion may be occurring. Commission will not take such activity impermissible subject matter for 119. Finally, the Commission into account in ruling on any petition to discussion because they may convey reemphasizes that the Commission will deny. Finally, the Commission notes pricing information and bidding aggressively investigate any allegations that it expects its licensing process to be strategy. Because auction applicants that an auction participant has violated more rapid generally in light of the should avoid all discussions with each § 1.2105(c). Bidders who are found to shortened petition to deny period other that will likely affect bids or have violated the Commission’s anti- permitted by the Balanced Budget Act. bidding strategies, the Commission collusion rules may, among other Balanced Budget Act, section 3008. believes that individual applicants, and sanctions, be subject to the loss of their IX. Conclusion not the Commission, are in the best down payment or their full bid amount, position to determine in the first face the cancellation of their licenses, 122. Based on the experience the instance which communications are and may be prohibited from Commission has gained from its 15 permissible and which are not. participating in future auctions. In completed auctions, as well as the 117. As discussed above, the Notice addition, where allegations appear to feedback it has received from bidders, also invited comment on any other give rise to violations of the federal the Commission believes the time has changes to our rules prohibiting antitrust laws, the Commission may come to streamline its competitive collusion that commenters believe are investigate and/or refer such cases to the bidding rules in order to make our warranted. Section 1.2105(c)(6)(i) of the United States Department of Justice for licensing process more efficient. In the Commission’s rules provide that, for investigation. past, the Commission has adjusted its purposes of the anti-collusion rule, an auction procedures for different services VIII. Pre-grant Construction applicant is defined as an entity and has gained experience with the submitting a short-form application, as 120. The Commission will adopt its process, resulting in the adoption of well as all holders of partnership, proposal in the Notice to permit different procedures for different ownership, and any stock interest applicants for all licenses awarded by auctionable services. This Third Report amounting to five percent or more of the competitive bidding to begin and Order amends subpart Q of part 1 entity. 47 CFR 1.2105(c)(6)(i). One construction of facilities prior to the of the Commission’s rules to reflect commenter, the Coalition of grant of their applications. All substantive amendments and Institutional Investors (‘‘CII’’), states that commenters addressing the issue modifications intended to simplify these defining any holder of five percent or support our proposal to permit license regulations, supersede unnecessary more of an auction applicant as part of applicants to begin construction of their rules wherever possible, and eliminate the applicant for purposes of the facilities, at their own risk, upon release the need to conduct separate, Commission’s anti-collusion rules of a public notice announcing the comprehensive rule making proceedings unnecessarily restricts applicants’ acceptance for filing of post-auction prior to each auction. The Commission abilities to obtain financing from a long-form applications. These believes that the rules it adopts today variety of sources. After careful commenters agree that allowing pre- will benefit bidders and the auction consideration of the issue, the grant construction furthers the statutory process generally. The Commission also Commission agrees with CII. Therefore, objective of rapidly deploying new believes these rules will help to provide the Commission will increase the technologies, products, and services for more specific guidance and flexibility attribution standard contained in the benefit of the public. 47 U.S.C. on a number of issues that will increase § 1.2105(c)(6)(i) to 10 percent, or any 309(j)(3)(A). the overall effectiveness of our auctions. 121. Commenters also support our holder of a controlling interest in the X. Final Regulatory Flexibility Analysis applicant. proposal to permit license applicants 118. A higher attribution standard with petitions to deny filed against their 123. As required by the Regulatory will facilitate the flow of capital to long-form applications to begin Flexibility Act (RFA), 5 U.S.C. 603, the applicants by enabling parties to make construction of their facilities at the Commission has prepared a Final investments in multiple applicants, same time as license applicants whose Regulatory Flexibility Analysis (FRFA) including applicants for licenses in the licenses are not the subject of pending of the expected impact on small entities same geographic areas. The petitions to deny. While the of the rules adopted in the Third Report Commission’s decision to use an Commission’s current service-specific and Order. The Commission will send attribution threshold of 10 percent is rules require as a condition for pre-grant a copy of the Third Report and Order, consistent with the change the construction no pending petitions to including this FRFA, to the Chief Commission makes to the general deny, the Commission concludes that Counsel for Advocacy of the Small reporting requirement. The Commission the merits of petitions to deny may be Business Administration. (In addition, recognizes that some potential for judged by an applicant and factored into the Third Report and Order and FRFA collusion exists whenever an entity is its assessment of the risk of proceeding (or summaries thereof) will be permitted to hold an interest in more with construction before license grant. published in the Federal Register.) As than one applicant for licenses in the The Commission therefore adopts a pre- required by the Regulatory Flexibility same geographic service area. However, grant construction rule for all services Act (RFA), an Initial Regulatory the Commission reemphasizes that subject to competitive bidding that Flexibility Analysis (IRFA) was auction applicants and their owners permits construction by applicants that incorporated in the Notice of Proposed continue to be subject to existing are subject to petitions to deny. Of Rulemaking in WT Docket No. 97–82.

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See 5 U.S.C. 604. The RFA is codified may require that these auctions be suspend installment payment financing at 5 U.S.C. 601 et seq. See also, conducted without offering long-term for the near future, the Commission Amendment of Part 1 of the installment payments. Thus, there determined that higher bidding credits Commission’s Rules—Competitive probably will be no reporting would better fulfill the mandate of Bidding Proceeding, WT Docket No. 97– requirements or fees for future section 309(j)(4)(D) of the 82, Order, Memorandum Opinion and installment payments. Communications Act to provide small Order, and Notice of Proposed (2) Merlin contends that including businesses the opportunity to Rulemaking, 62 FR 13570 (March 21, past affiliates in the proposed new participate in spectrum-based services. 1997). The Commission sought written definition of affiliate would require Therefore, the Commission adopts public comment on the proposals in the small businesses to keep more extensive bidding credits of 35 percent for Notice of Proposed Rulemaking, records and would be unduly designated entities with average gross including comment on the IRFA. This burdensome. This Order adopts a revenues not to exceed $3 million, 25 Final Regulatory Flexibility Analysis uniform definition of ‘‘affiliate’’ for all percent for designated entities with (FRFA) in this Third Report and Order future auctions. The term ‘‘affiliate’’ is average gross revenues not to exceed (Order) conforms to the RFA, as defined in the Part 1 rules as an $15 million, and 15 percent for amended by the Contract With America individual or entity that directly or designated entities with average gross Advancement Act of 1996 (CWAAA), indirectly controls or has the power to revenues not to exceed $40 million. Pub. L. 104–121, 110 Stat. 847 (1996). control the applicant; is directly or With respect to down payments, the indirectly controlled by the applicant; is Commission adopts the proposal in the A. Need for, and Objectives of, the directly or indirectly controlled by a Order in WT Docket No. 97–82 Notice to delegate to the Bureau the third person(s) that also controls or has discretion to determine the down 124. This Order makes substantive the power to control the applicant; or payment amount on a service-by-service amendments and modifications to the has an ‘‘identity of interest’’ with the basis. The Commission believes that a Commission’s general competitive applicant. The Commission concludes substantial down payment is required to bidding rules for all auctionable that this definition has helped to ensure ensure that licensees have the financial services. These changes to the that businesses seeking small business capability to attract the capital competitive bidding rules are intended status are truly small. In addition, the necessary to deploy and operate their to simplify the Commission’s rules and Commission finds that this definition is systems and to protect against default. regulations and eliminate unnecessary consistent with the decision to adopt a rules wherever possible, increase the controlling interest threshold for (5) Merlin argues that the proposal to efficiency of the competitive bidding purposes of attribution of gross revenues require auction winners to pay their process, and provide more specific of investors and affiliates of an second down payment regardless of a guidance to auction participants while applicant. pending petition to deny would increase also giving them more flexibility. (3) Merlin argues that the the defaults by small businesses. In this Commission’s proposal to lower the Order, the Commission is suspending B. Summary of Significant Issues Raised financial caps which permit small the use of installment payments as a by Public Comments in Response to the businesses to take advantage of special means of financing small business IRFA benefits would limit the number of participation in the auction program for 125. One party, Merlin Telecom, Inc. small businesses eligible for benefits the immediate future. As a result, all (Merlin), filed comments directly in and thus increase the barriers to entry auction winners, including small response to the IRFA. Merlin raises six that small businesses face. This Order businesses, will be required to submit arguments: adopts the proposal in the Notice to the full payment owed on their winning (1) Merlin urges the Commission not continue to define small businesses bids shortly after the license is ready to to impose additional reporting based on the characteristics and capital be granted. The Commission notes that requirements or additional fees on requirements of a specific service, in in the Balanced Budget Act Congress applicants seeking installment order to reduce the barriers to entry granted the Commission authority to payments. In this Order, the faced by small businesses. shorten the petition to deny period, and Commission concludes that installment (4) Merlin argues that the as a result, to grant licenses much more payments should not be offered in Commission’s proposals to reduce rapidly. Sections 1.2108 (b) and (c) of auctions as a means of financing small bidding credits, raise the interest rate on the rules are amended to provide that businesses and other designated entities installment payments, raise down the Commission shall not grant a license seeking to secure spectrum licenses. The payments, and eliminate installment less than seven days after public notice Commission eliminates installment payments will have a negative effect on that long-form applications have been payments in the auction of the lower 80 the ability of small businesses to accepted for filing. In addition, the and General Category channels in the compete effectively in the Commission amends this section to 800 MHz SMR service. The Commission telecommunications industry. In this provide that in all cases the period for notes that installment payments are not Order, the Commission concludes that filing petitions to deny shall be no the only tool available to assist small installment payments should not be shorter than five days. Applications that businesses. Section 3007 of the offered in auctions as a means of are the subject of petitions to deny will Balanced Budget Act requires that the financing small businesses and other ordinarily take longer to resolve than Commission conduct certain future designated entities seeking to secure uncontested applications, these changes auctions in a manner that ensures that spectrum licenses. In the Further in procedure will reduce the risk of all proceeds from such bidding are Notice, the Commission seeks comment frivolous petitions being filed solely for deposited in the U.S. Treasury not later on offering installment payments in the the purpose of delay and will enhance than September 30, 2002. The future; however, section 3007 of the the Commission’s ability to resolve Commission seeks comment in the Balanced Budget Act may require that petitions expeditiously. The Further Notice on offering installment these auctions be conducted without Commission declines to require all payments in the future; however, offering long-term installment winning bidders to make their full section 3007 of the Balanced Budget Act payments. In light of the decision to payments at the same time regardless of

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The broadband PCS licensees default on an installment The Commission has not developed a spectrum is divided into six frequency payment. The Commission is definition of small entities applicable to blocks designated A through F. The eliminating the use of installment cellular licensees. Therefore, the Commission has defined ‘‘small entity’’ payments as a means of financing small applicable definition of small entity is in the auctions for Blocks C and F as a business participation in the auction the definition under the Small Business firm that had average gross revenues of program for the foreseeable future. Administration (SBA) rules applicable less than $40 million in the three Therefore, in practice this decision will to radiotelephone companies. This previous calendar years. This definition apply only to existing licensees who are definition provides that a small entity is of ‘‘small entity’’ in the context of currently paying for their licenses in a radiotelephone company employing broadband PCS auctions has been installments. no more than 1,500 persons. The size approved by the SBA. The Commission data provided by the SBA does not has auctioned broadband PCS licenses C. Description and Estimate of the enable us to make a meaningful estimate in Blocks A through F. Of the qualified Number of Small Entities to Which of the number of cellular providers bidders in the C and F block auctions, Rules Will Apply which are small entities because it all were entrepreneurs—defined for 126. The RFA directs agencies to combines all radiotelephone companies these auctions as entities together with provide a description of, and, where with 500 or more employees. The 1992 affiliates, having gross revenues of less feasible, an estimate of the number of Census of Transportation, than $125 million and total assets of less small entities that will be affected by Communications, and Utilities, than $500 million at the time the FCC our rules. The RFA generally defines the conducted by the Bureau of the Census, Form 175 application was filed. Ninety term ‘‘small entity’’ as having the same is the most recent information available. bidders, including C block reauction meaning as the terms ‘‘small business,’’ This document shows that only 12 winners, won 493 C block licenses and ‘‘small organization,’’ and ‘‘small radiotelephone firms out of a total of 88 bidders won 491 F block licenses. governmental jurisdiction.’’ A small 1,178 such firms which operated during For purposes of this FRFA, the organization is generally ‘‘any not-for- 1992 had 1,000 or more employees. Commission assumes that all of the 90 profit enterprise which is independently Therefore, even if all 12 of these firms C block broadband PCS licensees and 88 owned and operated and is not were cellular telephone companies, F block broadband PCS licensees, a total dominant in its field.’’ Nationwide, nearly all cellular carriers were small of 178 licensees, are small entities. there are 275,801 small organizations. businesses under the SBA’s definition. Narrowband PCS. The Commission ‘‘Small governmental jurisdiction’’ The Commission assumes, for purposes has auctioned nationwide and regional generally means ‘‘governments of cities, of its evaluations and conclusions in licenses for narrowband PCS. There are counties, towns, townships, villages, this FRFA, that all of the current 11 nationwide and 30 regional licensees school districts, or special districts, with cellular licensees are small entities, as for narrowband PCS. The Commission a population of less than 50,000.’’ As of that term is defined by the SBA. In does not have sufficient information to 1992, there were 85,006 such addition, the Commission notes that determine whether any of these jurisdictions in the United States. there are 1,758 cellular licenses; licensees are small businesses within 127. In addition, the term ‘‘small however, the Commission does not the SBA-approved definition for business’’ has the same meaning as the know the number of cellular licensees, radiotelephone companies. At present, term ‘‘small business concern’’ under since a cellular licensee may own there have been no auctions held for the Section 3 of the Small Business Act. several licenses. The most reliable major trading area (MTA) and basic Under the Small Business Act, a ‘‘small source of information regarding the trading area (BTA) narrowband PCS business concern’’ is one which: (1) Is number of cellular service providers licenses. The Commission anticipates a independently owned and operated; (2) nationwide appears to be data the total of 561 MTA licenses and 2,958 is not dominant in its field of operation; Commission publishes annually in its BTA licenses will be awarded in the and (3) meets any additional criteria Telecommunications Industry Revenue auctions. Given that nearly all established by the Small Business report, regarding the radiotelephone companies have no more Administration (SBA). Telecommunications Relay Service than 1,500 employees, and that no 128. The rules adopted in this Order (TRS). The report places cellular reliable estimate of the number of will allow all entities, including existing licensees and Personal Communications prospective MTA and BTA narrowband cellular, PCS, paging, and other small Service (PCS) licensees in one group. licensees can be made, the Commission communications entities, to obtain According to the data released in assumes, for purposes of this FRFA, that licenses in auctionable services through November, 1997, there are 804 all of the licenses will be awarded to competitive bidding. These rules companies reporting that they engage in small entities, as that term is defined by generally apply to future auctions, but, cellular or PCS service. Although it the SBA. with limited exceptions, will not apply seems certain that some of these carriers to the initial auctions of licenses in the are not independently owned and Estimates for 220 MHz Radio Services paging, 220 MHz, 800 MHz Specialized operated, or have more than 1,500 Since the Commission has not yet Mobile Radio (SMR), and Local employees, the Commission is unable at defined a small business with respect to Multipoint Distribution (LMDS) this time to estimate with greater 220 MHz radio services, it will utilize services. In estimating the number of precision the number of cellular service the SBA definition applicable to small entities who may participate in carriers that would qualify as small radiotelephone companies—an entity future auctions of wireless services, the business concerns under the SBA’s employing no more than 1,500 persons.

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With respect to the 220 MHz services, the SBA definition applicable to is eligible to hold a PLMR license, the Commission has proposed a two- radiotelephone companies, i.e., an therefore, these rules could potentially tiered definition of small business for entity employing no more than 1,500 impact every small business in the purposes of auctions: (1) For Economic persons. There are approximately 100 United States if PLMR licenses are Area (EA) licensees, a firm with average licensees in the Air-Ground subject to auction under these new annual gross revenues of not more than radiotelephone service, and the auction rules. $6 million for the preceding three years; Commission estimates that almost all of Aviation and Marine Radio Service and (2) for regional and nationwide them qualify as small under the SBA licensees, a firm with average annual definition. Small entities in the aviation and gross revenues of not more than $15 marine radio services use a marine very Specialized Mobile Radio Licensees million for the preceding three years. high frequency (VHF) radio, any type of Since this definition has not yet been The Commission awards bidding emergency position indicating radio approved by the SBA, the Commission credits in auctions for geographic area beacon (EPIRB) and/or radar, a VHF will utilize the SBA definition 800 MHz and 900 MHz SMR licenses to aircraft radio, and/or any type of applicable to radiotelephone companies. two tiers of firms: (1) ‘‘Small entities,’’ emergency locator transmitter (ELT). Given that nearly all radiotelephone those with revenues of no more than The Commission has not developed a companies employ no more than 1,500 $15 million in each of the three definition of small entities specifically employees, the Commission will previous calendar years; and (2) ‘‘very applicable to these small businesses. consider the approximately 3,800 small entities,’’ those with revenues of Therefore, the applicable definition of incumbent licensees as small businesses no more than $3 million in each of the small entity is the definition under the under the SBA definition. three previous calendar years. The SBA rules applicable to a small regulations defining ‘‘small entity’’ and organization, generally ‘‘any not-for- Common Carrier Paging ‘‘very small entity’’ in the context of 800 profit enterprise which is independently The Commission has proposed a two- MHz SMR and 900 MHz SMR have been owned and operated and is not tier definition of small businesses in the approved by the SBA. The Commission dominant in its field.’’ Nationwide, context of auctioning geographic area does not know how many firms provide there are 275,801 small organizations. paging licenses in the Common Carrier 800 MHz or 900 MHz geographic area ‘‘Small governmental jurisdiction’’ Paging and exclusive Private Carrier SMR service pursuant to extended generally means ‘‘governments of cities, Paging services. Under the proposal, a implementation authorizations, nor how counties, towns, townships, villages, small business will be defined as either many of these providers have annual school districts, or special districts, with (1) an entity that, together with its revenues of no more than $15 million. a population of less than 50,000.’’ As of affiliates and controlling principals, has One firm has over $15 million in 1992, there were 85,006 such average gross revenues for the three revenues. The Commission assumes for jurisdictions in the United States. The preceding years of not more than $3 purposes of this FRFA that all of the Commission is unable at this time to million; or (2) an entity that, together remaining existing extended make a meaningful estimate of the with affiliates and controlling implementation authorizations are held number of potential small businesses principals, has average gross revenues by small entities, as that term is defined under these size standards. Most for the three preceding calendar years of by the SBA. The Commission has held applicants for individual recreational not more than $15 million. Since the auctions for geographic area licenses in licenses are individuals. Approximately SBA has not yet approved this the 900 MHz SMR band, and recently 581,000 ship station licensees and definition for paging services, the completed an auction for geographic 131,000 aircraft station licensees operate Commission will utilize the SBA area 800 MHz SMR licenses. There were domestically and are not subject to the definition applicable to radiotelephone 60 winning bidders who qualified as radio carriage requirements of any companies—an entity employing no small and very small entities in the 900 statute or treaty. Therefore, for purposes more than 1,500 persons. At present, MHz auction. In the recently concluded of the evaluations and conclusions in there are approximately 24,000 Private 800 MHz SMR auction there were 524 this FRFA, the Commission estimates Paging licenses and 74,000 Common licenses won by winning bidders, of that there may be at least 712,000 Carrier Paging licenses. According to which 38 licenses were won by small potential licensees which are Telecommunications Industry Revenue and very small entities. individuals or are small entities, as that data, there were 172 ‘‘paging and other Private Land Mobile Radio Licensees term is defined by the SBA. mobile’’ carriers reporting that they (PLMR) engage in these services. See FCC, Offshore Radiotelephone Service Telecommunications Industry Revenue: The Commission has not developed a This service operates on several UHF TRS Fund Worksheet Data, Figure 2 definition of small entities specifically TV broadcast channels that are not used (Number of Carriers Paying Into the TRS applicable to PLMR licensees. For the for TV broadcasting in the coastal area Fund by Type of Carrier) (Nov. 1997). purpose of determining whether a of the states bordering the Gulf of Consequently, the Commission licensee is a small business as defined Mexico. At present, there are estimates that there are fewer than 172 by the SBA, each licensee would need approximately 55 licensees in this small paging carriers. The Commission to be evaluated within its own business service. The Commission is unable at estimates that the majority of private area. The Commission is unable at this this time to estimate the number of and common carrier paging providers time to estimate the number of small licensees that would qualify as small would qualify as small businesses under businesses which could be impacted by entities under the SBA definition for the SBA definition. the rules. However, the Commission’s radiotelephone communications. 1994 Annual Report on PLMRs Air-Ground Radiotelephone Service indicates that at the end of fiscal year General Wireless Communication The Commission has not adopted a 1994 there were 1,087,267 licensees Service definition of small business specific to operating 12,481,989 transmitters in the This service was created by the the Air-Ground radiotelephone service. PLMR bands below 512 MHz. Any Commission on July 31, 1995 by Accordingly, the Commission will use entity engaged in a commercial activity transferring 25 MHz of spectrum in the

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4660–4685 MHz band from the federal general competitive bidding rules are policy of refunding upfront payments government to private sector use. The inappropriate. before the end of an auction to bidders Commission has announced that an 132. The Commission also received that lose eligibility; adopts uniform auction of 875 GWCS licenses will begin numerous comments with respect to the default rules to all auctionable services; on May 27, 1998. The Commission is issue of eliminating installment permits auction winners who have unable at this time to estimate the payments. The Commission has submitted a timely down payment to number of licensees that would qualify reviewed all of the comments in submit final payments 10 business days as small entities under the SBA response to the Notice of Proposed after the applicable deadline, provided definition for radiotelephone Rulemaking in this docket, as well as the appropriate late fee is paid; adopts communications. the comments filed in response to one 90-day non-delinquency period and Installment Public Notice (see ‘‘Wireless one automatic 90-day grace period, and D. Description of the Projected Telecommunications Bureau Seeks a late payment fee, similar to the rules Reporting, Recordkeeping, and Other Comment on Broadband PCS C and F for broadband PCS F block for licensees Compliance Requirements Block Installment Payment Issues,’’ currently paying under installments; 129. All license applicants will be Public Notice, DA 97–82, 62 FR 31777 and clarifies that the Commission will subject to reporting and recordkeeping (June 11, 1997) (‘‘Installment Public not pursue a policy of cross-default, requirements to comply with the Notice’’)) and concludes that either within or across services, where competitive bidding rules. Specifically, installment payments should not be licensees default on an installment applicants will apply for license offered in auctions as a means of payment. auctions by filing a short-form financing small businesses and other 135. Finally, this Order delegates application and will file a long-form designated entities seeking to secure authority to the Wireless application at the conclusion of the spectrum licenses. In this Order, Telecommunications Bureau to seek auction. Additionally, entities seeking Commission eliminates installment comment on specific mechanisms treatment as ‘‘small businesses’’ will payments in the auction of the lower 80 relating to auction conduct; allows for need to submit information pertaining and General Category channels in the real-time bidding in simultaneous to the gross revenues of the small 800 MHz SMR service. The Commission multiple-round auctions; provides that business applicant, its affiliates, and notes that installment payments are not the Bureau will seek comment on and certain investors in the applicant. the only tool available to assist small specify a minimum opening bid and/or businesses, and that section 3007 of the reserve price in future auctions; adopts, E. Steps Taken to Minimize the Balanced Budget Act requires that the for all auctionable services, the Economic Impact on Small Entities and Commission conduct certain future broadband PCS rules for bid withdrawal Significant Alternatives Considered auctions in a manner that ensures that payments in the event of erroneous bids; all proceeds from such bidding are modifies the attributable investor 130. Among other goals, Section deposited in the U.S. Treasury not later threshold of the anti-collusion rule to 309(j) directs the Commission to than September 30, 2002. The include controlling interests and/or disseminate licenses among a wide Commission seeks comment in the holders of a 10 percent or greater variety of applicants, including small Further Notice on offering installment interest in the applicant and to permit businesses and other designated payments in the future; however, an entity that has invested in an entities. At the same time, Section 309(j) section 3007 of the Balanced Budget Act applicant that withdraws from an requires that the Commission ensure the may require that these auctions be auction to invest in other applicants that development and rapid deployment of conducted without offering long-term have applied to bid in the same markets; new technologies, products, and installment payments. and permits all auction winners to begin services for the benefit of the public, 133. In assessing the public interest, construction at their own risk upon and recover for the public a portion of the Commission must try to ensure that issuance of a public notice announcing the value of the public spectrum all the objectives of section 309(j) are the auction winners. resource made available for commercial considered. In this Order, the 136. The Commission believes that use. Commission continues the practice of the objectives of section 309(j) are met 131. The Commission received defining small business standards on a by the rule changes in this Order. In numerous comments addressing the service-specific basis; adopts uniform addition, this Order serves the public applicability of general competitive definitions of ‘‘gross revenues’’ and interest by simplifying regulations, bidding rules for future auctions. Many ‘‘affiliate’’; eliminates the use of eliminating unnecessary rules, commenters support general installment payments for the 800 MHz increasing the efficiency of the competitive bidding rules, but argue Lower 80 channels and General competitive bidding process, and that the Commission should adopt Category channels services; suspends providing more specific guidance to service-specific rules in particular the use of installment payments for auction participants while also giving instances, such as a reauction. For other services to be auctioned in the them more flexibility. example, two commenters, AICC and immediate future; provides for higher AAA, argue that shared channels should bidding credits, in lieu of installment F. Report to Congress not be auctioned under the general payments, to encourage and facilitate 137. The Commission shall send a competitive bidding procedures. Hughes the participation of designated entities copy of this Final Regulatory Flexibility contends that if satellite services are in future auctions; and modifies the Analysis, along with this Order, in a auctioned, the Commission must unjust enrichment rule. report to Congress pursuant to the Small conduct a service-specific rulemaking 134. In addition, this Order requires Business Regulatory Enforcement tailored to the nature of the satellite electronic filing of all short-form and Fairness Act of 1996, 5 U.S.C. industry. The Commission does not long-form applications, beginning 801(a)(1)(A). A copy of the Order and address the issue of the auctionability of January 1, 1999; adopts a uniform this FRFA (or a summary thereof) will particular services in this proceeding; definition of major amendments to the be published in the Federal Register. however, service-specific auction rules short-form; adopts general ownership See 5 U.S.C. 604(b). A copy of the Order will be adopted in the future where the disclosure requirements; affirms the and this FRFA will also be sent to the

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Chief Counsel for Advocacy of the Small Proposed Rulemaking in CC Docket No. Federal Communications Commission. Business Administration. 92–297. Magalie Roman Salas, Type of Review: Revised Collection. XII. Paperwork Reduction Act Analysis Secretary. Respondents: Businesses or Other Notice of Public Information Collections For-profit entities. Rule Changes Submitted to OMB for Emergency Number of Respondents: 44,000. Parts 1, 21, 24, 27, 90 and 95 of Title Review and Approval Total Annual Burden: 773,000 hours. 47 of the Code of Federal Regulations are amended as follows: Paperwork Reduction Act Total Cost to Respondents: $46,347,350. The Federal Communications PART 1ÐPRACTICE AND Commission, as part of its continuing Needs and Uses PROCEDURE effort to reduce paperwork burden, The Commission is adopting a general 1. The authority citation for part 1 invites the general public and other rule to determine the amount of unjust continues to read as follows: federal agencies to take this opportunity enrichment payments to be assessed to comment on the following emergency upon assignment, transfer, partitioning Authority: 47 U.S.C. 151, 154, 207, 303 and 309(j), unless otherwise noted. information collection, as required by and disaggregation of licenses. The new the Paperwork Reduction Act of 1995, rule, applicable to all current and future 2. Section 1.2101 is revised to read as Pub. L. 104–13. An agency may not licensees, is based upon the unjust follows: conduct or sponsor a collection of enrichment rule currently applicable to § 1.2101 Purpose. information unless it displays a broadband PCS licensees. Therefore, currently valid control number. No transfer disclosure requirements will The provisions of this subpart person shall be subject to any penalty apply in all these license transactions. implement Section 309(j) of the for failing to comply with a collection Second, the Commission is amending Communications Act of 1934, as added of information subject to the Paperwork its general anti-collusion rules, by the Omnibus Budget Reconciliation Reduction Act (PRA) that does not permitting the holder of a non- Act of 1993 (Pub. L. 103–66) and the display a valid control number. controlling attributable interest in an Balanced Budget Act of 1997 (Pub. L. Comments are requested concerning applicant to obtain an ownership 105–33), authorizing the Commission to whether the proposed collection of interest in or enter into a consortium employ competitive bidding procedures information is necessary for the proper arrangement with another applicant for to choose from among two or more performance of the functions of the a license in the same geographic area mutually exclusive applications for Commission, including whether the provided that the original applicant has certain initial licenses. 3. Section 1.2102 is amended by information shall have practical utility, withdrawn from the auction, is no revising paragraphs (a) and (b) and the accuracy of the Commission’s longer placing bids, and has no further adding a note to the section to read as burden estimate, ways to enhance the eligibility. To meet the requirements of follows: quality, utility and clarity of the the exception, the attributable interest information collected, and ways to holder will be required to certify to the § 1.2102 Eligibility of applications for minimize the burden of the collection of Commission that it did not competitive bidding. information on the respondents, communicate with the new applicant (a) Mutually exclusive initial including the use of automated prior to the date the original applicant applications are subject to competitive collection techniques or other forms of withdrew from the auction, and that it bidding. information technology. The will not convey bidding information, or (b) The following types of license Commission is seeking emergency otherwise serve as a nexus between the applications are not subject to approval for this information collection previous and the new applicant. competitive bidding procedures: by March 2, 1998 under the provisions These requirements are being added (1) Public safety radio services, of 5 CFR 1320.13. to the existing requirements. The including private internal radio services DATES: Persons wishing to comment on number of respondents will not increase used by state and local governments and this information collection should but the annual burden hours and costs non-government entities and including submit comments by February 25, 1998. will increase by an estimated 8,500 emergency road services provided by hours and $612,650. not-for-profit organizations, that ADDRESSES: Direct all comments to Judy (i) Are used to protect the safety of Boley, Federal Communications List of Subjects life, health, or property; and Commission, Room 234, 1919 M St., 47 CFR Part 1 (ii) Are not commercially available to NW., Washington, DC 20554 or via Communications common carriers, the public; internet to [email protected] and Timothy (2) Initial licenses or construction Reporting and recordkeeping Fain, OMB Desk Officer, 10236 NEOB permits for digital television service 725 17th Street, NW., Washington, DC requirements. l given to existing terrestrial broadcast 20503 or fain [email protected]. 47 CFR Part 21 licensees to replace their analog FOR FURTHER INFORMATION CONTACT: for Communications common carriers, television service licenses; or additional information or copies of the Reporting and recordkeeping (3) Noncommercial educational and information collection contact Judy requirements. public broadcast stations described Boley at (202) 418–0217 or via Internet under 47 U.S.C. 397(6). at [email protected]. 47 CFR Part 90 * * * * * SUPPLEMENTARY INFORMATION: OMB Reporting and recordkeeping Note to § 1.2102: To determine the rules approval Number 3060–0767 Title: requirements. that apply to competitive bidding, specific Auction Forms and License Transfer service rules should also be consulted. Disclosures: Supplement For the Second 47 CFR Part 95 4. Section 1.2103 is amended by Report and Order, Order on Reporting and recordkeeping revising paragraph (a) and adding Reconsideration and Fifth Notice of requirements. paragraph (d) to read as follows:

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§ 1.2103 Competitive bidding design (2) Default or disqualification after name and title of a responsible person options. close of auction. If a high bidder should be included as well. If the (a) The Commission will choose from defaults or is disqualified after the close applicant is a trust, then the name and one or more of the following types of of such an auction, the defaulting bidder address of the trustee will be required. auction designs for services or classes of will be subject to the payment in If the applicant is none of the above, services subject to competitive bidding: paragraph (g)(1) of this section plus an then it must identify and describe itself (1) Simultaneous multiple-round additional payment equal to 3 percent of and its principals or other responsible auctions (using remote or on-site the subsequent winning bid. If the persons; and electronic bidding); subsequent winning bid exceeds the (B) Applicant ownership information, (2) Sequential multiple round defaulting bidder’s bid amount, the 3 as set forth in § 1.2112. auctions (using either oral ascending or percent payment will be calculated (iii) The identity of the person(s) remote and/or on-site electronic based on the defaulting bidder’s bid authorized to make or withdraw a bid; bidding); amount. If either bid amount is subject (iv) If the applicant applies as a (3) Sequential or simultaneous single- to a bidding credit, the 3 percent credit designated entity pursuant to § 1.2110, a round auctions (using either sealed will be calculated using the same bid statement to that effect and a paper or remote and/or on-site amounts and basis (net or gross bids) as declaration, under penalty of perjury, electronic bidding); and in the calculation of the payment in that the applicant is qualified as a (4) Combinatorial (package/ paragraph (g)(1) of this section. Thus, designated entity under § 1.2110. contingent) bidding auctions. (v) Certification that the applicant is for example, if gross bids are used to legally, technically, financially and * * * * * calculate the payment in paragraph otherwise qualified pursuant to section (d) The Commission may use real (g)(1) of this section, the 3 percent will 308(b) of the Communications Act of time bidding in all electronic auction be applied to the gross amount of the 1934, as amended. The Commission will designs. subsequent winning bid, or the gross 5. Section 1.2104 is amended by accept applications certifying that a amount of the defaulting bid, whichever revising paragraphs (d) and (g) to read request for waiver or other relief from is less. as follows: the requirements of section 310 is * * * * * pending; § 1.2104 Competitive bidding mechanisms. 6. Section 1.2105 is revised to read as (vi) Certification that the applicant is * * * * * follows: in compliance with the foreign (d) Minimum Bid Increments, § 1.2105 Bidding application and ownership provisions of section 310 of Minimum Opening Bids and Maximum certification procedures; prohibition of the Communications Act of 1934, as Bid Increments. The Commission may, collusion. amended; by announcement before or during an (a) Submission of Short-Form (vii) Certification that the applicant is auction, require minimum bid Application (FCC Form 175). In order to and will, during the pendency of its increments in dollar or percentage be eligible to bid, an applicant must application(s), remain in compliance terms. The Commission also may timely submit a short-form application with any service-specific qualifications establish minimum opening bids and (FCC Form 175), together with any applicable to the licenses on which the maximum bid increments on a service- appropriate upfront payment set forth applicant intends to bid including, but specific basis. by Public Notice. Beginning January 1, not limited to, financial qualifications. * * * * * 1999, all short-form applications must The Commission may require (g) Withdrawal, Default and be filed electronically. certification in certain services that the Disqualification Payment. As specified (1) All short-form applications will be applicant will, following grant of a below, when the Commission conducts due: license, come into compliance with an auction pursuant to § 1.2103, the (i) On the date(s) specified by public certain service-specific rules, including, Commission will impose payments on notice; or but not limited to, ownership eligibility bidders who withdraw high bids during (ii) In the case of application filing limitations; the course of an auction, or who default dates which occur automatically by (viii) An exhibit, certified as truthful on payments due after an auction closes operation of law (see, e.g., 47 CFR under penalty of perjury, identifying all or who are disqualified. 22.902), on a date specified by public parties with whom the applicant has (1) Bid withdrawal prior to close of notice after the Commission has entered into partnerships, joint auction. A bidder who withdraws a high reviewed the applications that have ventures, consortia or other agreements, bid during the course of an auction is been filed on those dates and arrangements or understandings of any subject to a payment equal to the determined that mutual exclusivity kind relating to the licenses being difference between the amount bid and exists. auctioned, including any such the amount of the winning bid the next (2) The short-form application must agreements relating to the post-auction time the license is offered by the contain the following information: market structure. Commission. The bid withdrawal (i) Identification of each license on (ix) Certification under penalty of payment is either the difference which the applicant wishes to bid; perjury that it has not entered and will between the net withdrawn bid and the (ii)(A) The applicant’s name, if the not enter into any explicit or implicit subsequent net winning bid, or the applicant is an individual. If the agreements, arrangements or difference between the gross withdrawn applicant is a corporation, then the understandings of any kind with any bid and the subsequent gross winning short-form application will require the parties other than those identified bid, whichever is less. No withdrawal name and address of the corporate office pursuant to paragraph (a)(2)(viii) payment is assessed if the subsequent and the name and title of an officer or regarding the amount of their bids, winning bid exceeds the withdrawn bid. director. If the applicant is a bidding strategies or the particular This payment amount is deducted from partnership, then the application will licenses on which they will or will not any upfront payments or down require the name, citizenship and bid. payments that the withdrawing bidder address of all general partners, and, if a Note to paragraph (a): The Commission has deposited with the Commission. partner is not a natural person, then the may also request applicants to submit

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(1) Any short-form application formation of consortia or changes in entity, or outstanding stock, or (FCC Form 175) that does not contain all ownership at any time before or during outstanding voting stock of the entity of the certifications required pursuant to an auction, provided such changes do submitting a short-form application, and this section is unacceptable for filing not result in a change in control of the all officers and directors of that entity; and cannot be corrected subsequent to applicant, and provided that the parties and the applicable filing deadline. The forming consortia or entering into (ii) The term bids or bidding strategies application will be dismissed with ownership agreements have not applied shall include capital calls or requests for prejudice and the upfront payment, if for licenses in any of the same additional funds in support of bids or paid, will be returned. geographic license areas. Such changes bidding strategies. (2) The Commission will provide will not be considered major Example: Company A is an applicant in bidders a limited opportunity to cure modifications of the application. area 1. Company B and Company C each own defects specified herein (except for (3) After the filing of short-form 10 percent of Company A. Company D is an failure to sign the application and to applications, applicants may make applicant in area 1, area 2, and area 3. make certifications) and to resubmit a agreements to bid jointly for licenses, Company C is an applicant in area 3. Without corrected application. During the provided the parties to the agreement violating the Commission’s Rules, Company resubmission period for curing defects, have not applied for licenses in any of B can enter into a consortium arrangement a short-form application may be the same geographic license areas. with Company D or acquire an ownership amended or modified to cure defects (4) After the filing of short-form interest in Company D if Company B certifies applications, a holder of a non- either (1) that it has communicated with and identified by the Commission or to will communicate neither with Company A make minor amendments or controlling attributable interest in an or anyone else concerning Company A’s bids modifications. After the resubmission entity submitting a short-form or bidding strategy, nor with Company C or period has ended, a short-form application may acquire an ownership anyone else concerning Company C’s bids or application may be amended or interest in, form a consortium with, or bidding strategy, or (2) that it has not modified to make minor changes or enter into a joint bidding arrangement communicated with and will not correct minor errors in the application. with, other applicants for licenses in the communicate with Company D or anyone Major amendments cannot be made to a same geographic license area, provided else concerning Company D’s bids or bidding short-form application after the initial that: strategy. filing deadline. Major amendments (i) The attributable interest holder 7. Section 1.2107 is amended by include changes in ownership of the certifies to the Commission that it has revising paragraphs (b) and (c) to read applicant that would constitute an not communicated and will not as follows: assignment or transfer of control, communicate with any party concerning changes in an applicant’s size which the bids or bidding strategies of more § 1.2107 Submission of down payment and filing of long-form applications. would affect eligibility for designated than one of the applicants in which it entity provisions, and changes in the holds an attributable interest, or with * * * * * license service areas identified on the which it has a consortium or joint (b) Unless otherwise specified by short-form application on which the bidding arrangement, and which have public notice, within ten (10) business applicant intends to bid. Minor applied for licenses in the same days after being notified that it is a high amendments include, but are not geographic license area(s); and bidder on a particular license(s), a high limited to, the correction of (ii) The arrangements do not result in bidder must submit to the Commission’s typographical errors and other minor any change in control of an applicant; lockbox bank such additional funds (the defects not identified as major. An or ‘‘down payment’’) as are necessary to application will be considered to be (iii) When an applicant has bring its total deposits (not including newly filed if it is amended by a major withdrawn from the auction, is no upfront payments applied to satisfy bid amendment and may not be resubmitted longer placing bids and has no further withdrawal or default payments) up to after applicable filing deadlines. eligibility, a holder of a non-controlling, twenty (20) percent of its high bid(s). (In (3) Applicants who fail to correct attributable interest in such an applicant single round sealed bid auctions defects in their applications in a timely may obtain an ownership interest in or conducted under § 1.2103, however, manner as specified by public notice enter into a consortium with another bidders may be required to submit their will have their applications dismissed applicant for a license in the same down payments with their bids.) Unless with no opportunity for resubmission. geographic service area, provided that otherwise specified by public notice, (c) Prohibition of collusion. (1) Except the attributable interest holder certifies this down payment must be made by as provided in paragraphs (c)(2), (c)(3) to the Commission that it did not wire transfer in U.S. dollars from a and (c)(4) of this section, after the filing communicate with the new applicant financial institution whose deposits are of short-form applications, all prior to the date that the original insured by the Federal Deposit applicants are prohibited from applicant withdrew from the auction. Insurance Corporation and must be cooperating, collaborating, discussing or (5) Applicants must modify their made payable to the Federal disclosing in any manner the substance short-form applications to reflect any Communications Commission. Down of their bids or bidding strategies, or changes in ownership or in membership payments will be held by the discussing or negotiating settlement of consortia or joint bidding Commission until the high bidder has agreements, with other applicants until arrangements. been awarded the license and has paid after the high bidder makes the required (6) For purposes of this paragraph: the remaining balance due on the down payment, unless such applicants (i) The term applicant shall include license or authorization, in which case are members of a bidding consortium or all controlling interests in the entity it will not be returned, or until the other joint bidding arrangement submitting a short-form application to winning bidder is found unqualified to

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No interest on any down read as follows: definition of a small business on a payment will be paid to the bidders. service-specific basis, taking into (c) A high bidder that meets its down § 1.2109 License grant, denial, default, and disqualification. consideration the characteristics and payment obligations in a timely manner capital requirements of the particular must, within ten (10) business days after (a) Unless otherwise specified by service. being notified that it is a high bidder, public notice, auction winners are required to pay the balance of their (2) Businesses owned by members of submit an additional application (the minority groups and/or women. Unless ‘‘long-form application’’) pursuant to winning bids in a lump sum within ten (10) business days following the release otherwise provided in rules governing the rules governing the service in which specific services, a business owned by the applicant is the high bidder. of a public notice establishing the payment deadline. If a winning bidder members of minority groups and/or Notwithstanding any other provision in women is one in which minorities and/ title 47 of the Code of Federal fails to pay the balance of its winning bids in a lump sum by the applicable or women who are U.S. citizens control Regulations to the contrary, high the applicant, have at least 50.1 percent bidders need not submit an additional deadline as specified by the equity ownership and, in the case of a application filing fee with their long- Commission, it will be allowed to make corporate applicant, a 50.1 percent form applications. Specific procedures payment within ten (10) business days voting interest. For applicants that are for filing applications will be set out by after the payment deadline, provided partnerships, every general partner Public Notice. Beginning January 1, that it also pays a late fee equal to five either must be a minority and/or woman 1999, all long-form applications must be percent of the amount due. When a (or minorities and/or women) who are filed electronically. An applicant that winning bidder fails to pay the balance U.S. citizens and who individually or fails to submit the required long-form of its winning bid by the late payment together own at least 50.1 percent of the application under this paragraph and deadline, it is considered to be in partnership equity, or an entity that is fails to establish good cause for any late- default on its license(s) and subject to filed submission, shall be deemed to the applicable default payments. 100 percent owned and controlled by have defaulted and will be subject to the Licenses will be awarded upon the full minorities and/or women who are U.S. payments set forth in § 1.2104. and timely payment of winning bids citizens. The interests of minorities and and any applicable late fees. women are to be calculated on a fully- * * * * * diluted basis; agreements such as stock 8. Section 1.2108 is amended by (b) If a winning bidder withdraws its options and convertible debentures revising paragraphs (b) and (c) to read bid after the Commission has declared shall be considered to have a present as follows: competitive bidding closed or fails to remit the required down payment effect on the power to control an entity § 1.2108 Procedures for filing petitions to within ten (10) business days after the and shall be treated as if the rights deny against long-form applications. Commission has declared competitive thereunder already have been fully * * * * * bidding closed, the bidder will be exercised. However, upon a (b) Within a period specified by deemed to have defaulted, its demonstration that options or Public Notice, and after the Commission application will be dismissed, and it conversion rights held by non- by public notice announces that long- will be liable for the default payment controlling principals will not deprive form applications have been accepted specified in § 1.2104(g)(2). In such the minority and female principals of a for filing, petitions to deny such event, the Commission, at its discretion, substantial financial stake in the venture applications may be filed. In all cases, may either re-auction the license to or impair their rights to control the the period for filing petitions to deny existing or new applicants or offer it to designated entity, a designated entity shall be no shorter than five (5) days. the other highest bidders (in descending may seek a waiver of the requirement Any such petitions must contain order) at their final bids. The down that the equity of the minority and allegations of fact supported by affidavit payment obligations set forth in female principals must be calculated on of a person or persons with personal § 1.2107(b) will apply. a fully-diluted basis. The term minority knowledge thereof. (c) A winning bidder who is found includes individuals of African (c) An applicant may file an unqualified to be a licensee, fails to American, Hispanic-surnamed, opposition to any petition to deny, and remit the balance of its winning bid in American Eskimo, Aleut, American the petitioner a reply to such a timely manner, or defaults or is Indian and Asian American extraction. opposition. Allegations of fact or denials disqualified for any reason after having (3) Rural telephone companies. A thereof must be supported by affidavit made the required down payment, will rural telephone company is any local of a person or persons with personal be deemed to have defaulted and will be exchange carrier operating entity to the knowledge thereof. The time for filing liable for the payment set forth in extent that such entity— such oppositions shall be at least five (5) § 1.2104(g)(2). In such event, the (i) provides common carrier service to days from the filing date for petitions to Commission may either re-auction the deny, and the time for filing replies any local exchange carrier study area license to existing or new applicants or that does not include either shall be at least five (5) days from the offer it to the other highest bidders (in filing date for oppositions. The descending order) at their final bids. (A) any incorporated place of 10,000 Commission may grant a license based inhabitants or more, or any part thereof, on any long-form application that has * * * * * based on the most recently available 10. Section 1.2110 is revised to read been accepted for filing. The population statistics of the Bureau of the as follows: Commission shall in no case grant Census, or licenses earlier than seven (7) days § 1.2110 Designated entities. (B) any territory, incorporated or following issuance of a public notice (a) Designated entities are small unincorporated, included in an announcing long-form applications have businesses, businesses owned by urbanized area, as defined by the been accepted for filing. members of minority groups and/or Bureau of the Census as of August 10, * * * * * women, and rural telephone companies. 1993;

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(ii) provides telephone exchange director has a block sufficient to give him or (iv) Affiliation through stock service, including exchange access, to her control or the power to control and the ownership. (A) An applicant is fewer than 50,000 access lines; remaining 60 percent is widely distributed presumed to control or have the power (iii) provides telephone exchange with no individual stockholder having a to control a concern if he or she owns stock interest greater than 10 percent, service to any local exchange carrier management has the power to control. If or controls or has the power to control study area with fewer than 100,000 persons with such management control of the 50 percent or more of its voting stock. access lines; or other entity are persons with attributable (B) An applicant is presumed to (iv) has less than 15 percent of its interests in the applicant, the other entity control or have the power to control a access lines in communities of more will be deemed an affiliate of the applicant. concern even though he or she owns, than 50,000 on the date of enactment of controls or has the power to control less the Telecommunications Act of 1996. (iii) Identity of interest between and than 50 percent of the concern’s voting (4) Affiliate. (i) An individual or among persons. Affiliation can arise stock, if the block of stock he or she entity is an affiliate of an applicant or between or among two or more persons owns, controls or has the power to of a person holding an attributable with an identity of interest, such as control is large as compared with any interest in an applicant if such members of the same family or persons other outstanding block of stock. individual or entity— with common investments. In (C) If two or more persons each owns, (A) Directly or indirectly controls or determining if the applicant controls or controls or has the power to control less has the power to control the applicant, has the power to control a concern, than 50 percent of the voting stock of a or persons with an identity of interest will concern, such minority holdings are (B) Is directly or indirectly controlled be treated as though they were one equal or approximately equal in size, by the applicant, or person. and the aggregate of these minority (C) Is directly or indirectly controlled Example. Two shareholders in Corporation holdings is large as compared with any by a third party or parties that also Y each have attributable interests in the same other stock holding, the presumption controls or has the power to control the PCS application. While neither shareholder arises that each one of these persons applicant, or has enough shares to individually control individually controls or has the power (D) Has an ‘‘identity of interest’’ with Corporation Y, together they have the power to control the concern; however, such to control Corporation Y. The two presumption may be rebutted by a the applicant. shareholders with these common (ii) Nature of control in determining investments (or identity in interest) are showing that such control or power to affiliation. treated as though they are one person and control, in fact, does not exist. (A) Every business concern is Corporation Y would be deemed an affiliate (v) Affiliation arising under stock considered to have one or more parties of the applicant. options, convertible debentures, and who directly or indirectly control or agreements to merge. Stock options, have the power to control it. Control (A) Spousal affiliation. Both spouses convertible debentures, and agreements may be affirmative or negative and it is are deemed to own or control or have to merge (including agreements in immaterial whether it is exercised so the power to control interests owned or principle) are generally considered to long as the power to control exists. controlled by either of them, unless they have a present effect on the power to are subject to a legal separation Example. An applicant owning 50 percent control the concern. Therefore, in recognized by a court of competent making a size determination, such of the voting stock of another concern would jurisdiction in the United States. In have negative power to control such concern options, debentures, and agreements are since such party can block any action of the calculating their net worth, investors generally treated as though the rights other stockholders. Also, the bylaws of a who are legally separated must include held thereunder had been exercised. corporation may permit a stockholder with their share of interests in property held However, an affiliate cannot use such less than 50 percent of the voting stock to jointly with a spouse. options and debentures to appear to block any actions taken by the other (B) Kinship affiliation. Immediate terminate its control over another stockholders in the other entity. Affiliation family members will be presumed to concern before it actually does so. exists when the applicant has the power to own or control or have the power to control a concern while at the same time Example 1. If company B holds an option another person, or persons, are in control of control interests owned or controlled by to purchase a controlling interest in company the concern at the will of the party or parties other immediate family members. In A, who holds an attributable interest in a PCS with the power to control. this context ‘‘immediate family application, the situation is treated as though member’’ means father, mother, company B had exercised its rights and had (B) Control can arise through stock husband, wife, son, daughter, brother, come owner of a controlling interest in ownership; occupancy of director, sister, father- or mother-in-law, son- or company A. The gross revenues of company officer or key employee positions; daughter-in-law, brother- or sister-in- B must be taken into account in determining contractual or other business relations; the size of the applicant. law, step-father or -mother, step-brother Example 2. If a large company, BigCo, or combinations of these and other or -sister, step-son or -daughter, half factors. A key employee is an employee holds 70% (70 of 100 outstanding shares) of brother or sister. This presumption may the voting stock of company A, who holds an who, because of his/her position in the be rebutted by showing that the family attributable interest in a PCS application, and concern, has a critical influence in or members are estranged, the family ties gives a third party, SmallCo, an option to substantive control over the operations are remote, or the family members are purchase 50 of the 70 shares owned by or management of the concern. not closely involved with each other in BigCo, BigCo will be deemed to be an affiliate (C) Control can arise through business matters. of company A, and thus the applicant, until management positions where a SmallCo actually exercises its option to concern’s voting stock is so widely Example. A owns a controlling interest in purchase such shares. In order to prevent distributed that no effective control can Corporation X. A’s sister-in-law, B, has an BigCo from circumventing the intent of the attributable interest in a PCS application. be established. rule which requires such options to be Because A and B have a presumptive kinship considered on a fully diluted basis, the Example. In a corporation where the affiliation, A’s interest in Corporation Y is option is not considered to have present officers and directors own various size blocks attributable to B, and thus to the applicant, effect in this case. of stock totaling 40 percent of the unless B rebuts the presumption with the Example 3. If company A has entered into corporation’s voting stock, but no officer or necessary showing. an agreement to merge with company B in

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An not exceeding $3 million are eligible for holds or shares the power to vote such agreement to share profits/losses bidding credits of 35 percent; stock, to any person who has the sole proportionate to each party’s (ii) Businesses with average gross power to sell such stock, and to any contribution to the business operation is revenues for the preceding years, 3 years person who has the right to revoke the a significant factor in determining not exceeding $15 million are eligible trust at will or to replace the trustee at whether the business operation is a joint for bidding credits of 25 percent; and will. venture. (iii) Businesses with average gross (B) If a trustee has a familial, personal (B) The parties to a joint venture are revenues for the preceding years, 3 years or extra-trust business relationship to considered to be affiliated with each not exceeding $40 million are eligible the grantor or the beneficiary, the stock other. Nothing in this subsection shall for bidding credits of 15 percent. interests held in trust will be deemed be construed to define a small business (f) Installment payments. The controlled by the grantor or beneficiary, consortium, for purposes of determining Commission may permit small as appropriate. status as a designated entity, as a joint businesses (including small businesses (C) If the primary purpose of a voting venture under attribution standards owned by women, minorities, or rural trust, or similar agreement, is to separate provided in this section. telephone companies that qualify as voting power from beneficial ownership (xi) Exclusion from affiliation small businesses) and other entities of voting stock for the purpose of coverage. For purposes of this section, determined to be eligible on a service- shifting control of or the power to Indian tribes or Alaska Regional or specific basis, which are high bidders control a concern in order that such Village Corporations organized pursuant for licenses specified by the concern or another concern may meet to the Alaska Native Claims Settlement Commission, to pay the full amount of the Commission’s size standards, such Act (43 U.S.C. 1601 et seq.), or entities their high bids in installments over the voting trust shall not be considered owned and controlled by such tribes or term of their licenses pursuant to the valid for this purpose regardless of corporations, are not considered following: whether it is or is not recognized within affiliates of an applicant (or licensee) (1) Unless otherwise specified by the appropriate jurisdiction. that is owned and controlled by such public notice, each eligible applicant (vii) Affiliation through common tribes, corporations or entities, and that paying for its license(s) on an management. Affiliation generally arises otherwise complies with the installment basis must deposit by wire where officers, directors, or key requirements of this section, except that transfer in the manner specified in employees serve as the majority or gross revenues derived from gaming § 1.2107(b) sufficient additional funds otherwise as the controlling element of activities conducted by affiliate entities as are necessary to bring its total the board of directors and/or the pursuant to the Indian Gaming deposits to ten (10) percent of its management of another entity. Regulatory Act (25 U.S.C. 2701 et seq.) winning bid(s) within ten (10) days after (viii) Affiliation through common will be counted in determining such the Commission has declared it the facilities. Affiliation generally arises applicant’s (or licensee’s) compliance winning bidder and closed the bidding. where one concern shares office space with the financial requirements of this Failure to remit the required payment and/or employees and/or other facilities section, unless such applicant will make the bidder liable to pay a with another concern, particularly establishes that it will not receive a default payment pursuant to where such concerns are in the same or substantial unfair competitive advantage § 1.2104(g)(2). related industry or field of operations, because significant legal constraints (2) Within ten (10) days of the or where such concerns were formerly restrict the applicant’s ability to access conditional grant of the license affiliated, and through these sharing such gross revenues. application of a winning bidder eligible arrangements one concern has control, (c) The Commission may set aside for installment payments, the licensee or potential control, of the other specific licenses for which only eligible shall pay another ten (10) percent of the concern. designated entities, as specified by the high bid, thereby commencing the (ix) Affiliation through contractual Commission, may bid. eligible licensee’s installment payment relationships. Affiliation generally (d) The Commission may permit plan. Failure to remit the required arises where one concern is dependent partitioning of service areas in payment will make the bidder liable to upon another concern for contracts and particular services for eligible pay default payments pursuant to business to such a degree that one designated entities. § 1.2104(g)(2). concern has control, or potential (e) Bidding credits. (1) The (3) Upon grant of the license, the control, of the other concern. Commission may award bidding credits Commission will notify each eligible (x) Affiliation under joint venture (i.e., payment discounts) to eligible licensee of the terms of its installment arrangements. (A) A joint venture for designated entities. Competitive bidding payment plan and that it must execute size determination purposes is an rules applicable to individual services a promissory note and security association of concerns and/or will specify the designated entities agreement as a condition of the individuals, with interests in any degree eligible for bidding credits, the licenses installment payment plan. Unless other or proportion, formed by contract, for which bidding credits are available, terms are specified in the rules of express or implied, to engage in and the amounts of bidding credits and particular services, such plans will: carry out a single, specific business other procedures. (i) Impose interest based on the rate venture for joint profit for which (2) Size of bidding credits. A winning of U.S. Treasury obligations (with purpose they combine their efforts, bidder that qualifies as a small business maturities closest to the duration of the property, money, skill and knowledge, or a consortium of small businesses may license term) at the time of licensing; but not on a continuing or permanent use the following bidding credits (ii) Allow installment payments for basis for conducting business generally. corresponding to their respective the full license term;

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(iii) Begin with interest-only (g) The Commission may establish any deductions are made for costs of payments for the first two years; and different upfront payment requirements doing business (e.g., cost of goods sold), (iv) Amortize principal and interest for categories of designated entities in as evidenced by audited financial over the remaining term of the license. competitive bidding rules of particular statements for the relevant number of (4) A license granted to an eligible auctionable services. most recently completed calendar years entity that elects installment payments (h) The Commission may offer or, if audited financial statements were shall be conditioned upon the full and designated entities a combination of the not prepared on a calendar-year basis, timely performance of the licensee’s available preferences or additional for the most recently completed fiscal payment obligations under the preferences. years preceding the filing of the installment plan. (i) Designated entities must describe applicant’s short-form (FCC Form 175). (i) Any licensee that fails to submit on their long-form applications how If an entity was not in existence for all payment on an installment obligation they satisfy the requirements for or part of the relevant period, gross will automatically have an additional eligibility for designated entity status, revenues shall be evidenced by the ninety (90) days in which to submit its and must list and summarize on their audited financial statements of the required payment without being long-form applications all agreements entity’s predecessor-in-interest or, if considered delinquent. Any licensee that effect designated entity status, such there is no identifiable predecessor-in- making its required payment during this as partnership agreements, shareholder interest, unaudited financial statements period will be assessed a late payment agreements, management agreements certified by the applicant as accurate. fee equal to five percent (5%) of the and other agreements, including oral When an applicant does not otherwise amount of the past due payment. Late agreements, which establish that the use audited financial statements, its designated entity will have both de fees assessed under this paragraph will gross revenues may be certified by its facto and de jure control of the entity. accrue on the next business day chief financial officer or its equivalent Such information must be maintained at following the payment due date. and must be prepared in accordance the licensees’ facilities or by their Payments made at the close of any grace with Generally Accepted Accounting designated agents for the term of the period will first be applied to satisfy any Principles. license in order to enable the lender advances as required under each 11. Section 1.2111 is amended by Commission to audit designated entity licensee’s ‘‘Note and Security revising paragraphs (c) and (d) and eligibility on an ongoing basis. adding paragraph (e) to read as follows: Agreement.’’ Afterwards, payments will (j) The Commission may, on a service- be applied in the following order: late specific basis, permit consortia, each § 1.2111 Assignment or transfer of control: charges, interest charges, principal member of which individually meets unjust enrichment. payments. the eligibility requirements, to qualify * * * * * (ii) If any licensee fails to make the for any designated entity provisions. (c) Unjust enrichment payment: required payment at the close of the 90- (k) The Commission may, on a installment financing. (1) If a licensee day period set forth in paragraph (i) of service-specific basis, permit publicly- that utilizes installment financing under this section, the licensee will traded companies that are owned by this section seeks to assign or transfer automatically be provided with a members of minority groups or women control of its license to an entity not subsequent 90-day grace period. Any to qualify for any designated entity meeting the eligibility standards for licensee making a required payment provisions. installment payments, the licensee must during this subsequent period will be (l) Audits. (1) Applicants and make full payment of the remaining assessed a late payment fee equal to ten licensees claiming eligibility under this unpaid principal and any unpaid percent (10%) of the amount of the past section shall be subject to audits by the interest accrued through the date of due payment. Licensees shall not be Commission, using in-house and assignment or transfer as a condition of required to submit any form of request contract resources. Selection for audit approval. in order to take advantage of the initial may be random, on information, or on (2) If a licensee that utilizes 90-day non-delinquency period and the basis of other factors. installment financing under this section subsequent automatic 90-day grace (2) Consent to such audits is part of seeks to make any change in ownership period. All licensees that avail the certification included in the short- structure that would result in the themselves of the automatic grace form application (FCC Form 175). Such licensee losing eligibility for installment period must pay the required late fee(s), consent shall include consent to the payments, the licensee shall first seek all interest accrued during the non- audit of the applicant’s or licensee’s Commission approval and must make delinquency and grace periods, and the books, documents and other material full payment of the remaining unpaid appropriate scheduled payment with (including accounting procedures and principal and any unpaid interest the first payment made following the practices) regardless of form or type, accrued through the date of such change conclusion of the grace period. sufficient to confirm that such as a condition of approval. A licensee’s (iii) If an eligible entity making applicant’s or licensee’s representations (or other attributable entity’s) increased installment payments is more than one are, and remain, accurate. Such consent gross revenues or increased total assets hundred and eighty (180) days shall include inspection at all due to nonattributable equity delinquent in any payment, it shall be reasonable times of the facilities, or investments, debt financing, revenue in default. parts thereof, engaged in providing and from operations or other investments, (iv) Any eligible entity that submits transacting business, or keeping records business development or expanded an installment payment after the due regarding FCC-licensed service and service shall not be considered to result date but fails to pay any late fee, interest shall also include consent to the in the licensee losing eligibility for or principal at the close of the 90-day interview of principals, employees, installment payments. non-delinquency period and subsequent customers and suppliers of the (3) If a licensee seeks to make any automatic grace period will be declared applicant or licensee. change in ownership that would result in default, its license will automatically (m) Gross revenues. Gross revenues in the licensee qualifying for a less cancel, and will be subject to debt shall mean all income received by an favorable installment plan under this collection procedures. entity, whether earned or passive, before section, the licensee shall seek

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Commission approval and must adjust percent of the value of the bidding applicant, including the specific amount its payment plan to reflect its new credit; of the interest; eligibility status. A licensee may not (D) A transfer in year 5 of the license (3) A list of any party holding a 10 switch its payment plan to a more term will result in a forfeiture of 25 percent or greater interest in any entity favorable plan. percent of the value of the bidding holding or applying for any FCC- (d) Unjust enrichment payment: credit; and regulated business in which a 10 bidding credits. (1) A licensee that (E) for a transfer in year 6 or percent or more interest is held by utilizes a bidding credit, and that during thereafter, there will be no payment. another party which holds a 10 percent the initial term seeks to assign or (ii) These payments will have to be or more interest in the applicant (e.g., If transfer control of a license to an entity paid to the United States Treasury as a company A owns 10 percent of that does not meet the eligibility criteria condition of approval of the assignment, Company B (the applicant) and 10 for a bidding credit, will be required to transfer, or ownership change. percent of Company C then Companies reimburse the U.S. Government for the (e) Unjust enrichment: partitioning A and C must be listed on Company B’s amount of the bidding credit, plus and disaggregation. (1) Installment application; interest based on the rate for ten year payments. Licensees making installment (4) A list of the names, addresses, and U.S. Treasury obligations applicable on payments, that partition their licenses or citizenship of any party holding 10 the date the license was granted, as a disaggregate their spectrum to entities percent or more of each class of stock, condition of Commission approval of not meeting the eligibility standards for warrants, options or debt securities the assignment or transfer. If, within the installment payments, will be subject to together with the amount and initial term of the license, a licensee that the provisions concerning unjust percentage held; utilizes a bidding credit seeks to assign (5) A list of the names, addresses, and enrichment as set forth in this section. or transfer control of a license to an citizenship of all controlling interests of (2) Bidding credits. Licensees that entity that is eligible for a lower bidding the applicants, as set forth in § 1.2110; credit, the difference between the received a bidding credit that partition (6) In the case of a general bidding credit obtained by the assigning their licenses or disaggregate their partnerships, the name, address and party and the bidding credit for which spectrum to entities not meeting the citizenship of each partner, and the the acquiring party would qualify, plus eligibility standards for such a bidding share or interest participation in the interest based on the rate for ten year credit, will be subject to the provisions partnership; U.S. treasury obligations applicable on concerning unjust enrichment as set (7) In the case of a limited the date the license is granted, must be forth in this section. partnerships, the name, address and paid to the U.S. Government as a (3) Apportioning unjust enrichment citizenship of each limited partner condition of Commission approval of payments. Unjust enrichment payments whose interest in the applicant is equal the assignment or transfer. If, within the for partitioned license areas shall be to or greater than 10 percent (as initial term of the license, a licensee that calculated based upon the ratio of the calculated according to the percentage utilizes a bidding credit seeks to make population of the partitioned license of equity paid in and the percentage of any ownership change that would result area to the overall population of the distribution of profits and losses); in the licensee losing eligibility for a license area and by utilizing the most (8) In the case of a limited liability bidding credit (or qualifying for a lower recent census data. Unjust enrichment corporation, the name, address and bidding credit), the amount of the payments for disaggregated spectrum citizenship of each of its members; and bidding credit (or the difference shall be calculated based upon the ratio (9) A list of all parties holding between the bidding credit originally of the amount of spectrum disaggregated indirect ownership interests in the obtained and the bidding credit for to the amount of spectrum held by the applicant, as determined by successive which the restructured licensee would licensee. multiplication of the ownership qualify), plus interest based on the rate 12. Section 1.2112 is added to read as percentages for each link in the vertical for ten year U.S. treasury obligations follows: ownership chain, that equals 10 percent applicable on the date the license is or more of the applicant, except that if § 1.2112 Ownership disclosure the ownership percentage for an interest granted, must be paid to the U.S. requirements for short- and long-form Government as a condition of applications. in any link in the chain exceeds 50 Commission approval of the assignment percent or represents actual control, it or transfer. (a) Each application for a license or shall be treated and reported as if it (2) Payment schedule. (i) The amount authorization or for consent to assign or were a 100 percent interest. of payments made pursuant to transfer control of a license or (b) In addition to the information paragraph (d)(1) of this section will be authorization shall disclose fully the required under paragraph (a) of this reduced over time as follows: real party or parties in interest and must section, each applicant for a license or (A) A transfer in the first two years of include in an exhibit the following authorization claiming status as a small the license term will result in a information: business shall, as an exhibit to its long- forfeiture of 100 percent of the value of (1) A list of any FCC-regulated form application: the bidding credit (or in the case of very business 10 percent or more of whose (1) Disclose separately and in the small businesses transferring to small stock, warrants, options or debt aggregate the gross revenues, computed businesses, 100 percent of the difference securities are owned by the applicant or in accordance with § 1.2110, for each of between the bidding credit received by an officer, director, attributable the following: the applicant and its the former and the bidding credit for stockholder or key management affiliates, the applicant’s attributable which the latter is eligible); personnel of the applicant. This list investors, affiliates of its attributable (B) A transfer in year 3 of the license must include a description of each such investors, and, if a consortium of small term will result in a forfeiture of 75 business’s principal business and a businesses, the members comprising the percent of the value of the bidding description of each such business’s consortium; credit; relationship to the applicant; (2) List and summarize all agreements (C) A transfer in year 4 of the license (2) A list of any party holding a 10 or instruments (with appropriate term will result in a forfeiture of 50 percent or greater interest in the references to specific provisions in the

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 2348 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations text of such agreements and (d) Conditions. Except as indicated, PART 24ÐPERSONAL instruments) that support the all pre-grant construction is subject to COMMUNICATIONS SERVICES applicant’s eligibility as a small the following conditions: business under the applicable (1) The application does not include 17. The authority citation for part 24 designated entity provisions, including a request for a waiver of one or more continues to read as follows: the establishment of de facto and de jure FCC rules; Authority: 47 U.S.C. Sections 154, 301, control; such agreements and (2) For any construction or alteration 302, 303, and 332, unless otherwise noted. instruments include articles of that would exceed the requirements of 18. Section 24.304 is amended by incorporation and bylaws, shareholder § 17.7 of this chapter, the licensee has revising paragraph (a)(2) to read as agreements, voting or other trust notified the appropriate Regional Office follows: agreements, franchise agreements, and of the Federal Aviation Administration any other relevant agreements (FAA Form 7460–1), filed a request for § 24.304 Withdrawal, default and (including letters of intent), oral or antenna height clearance and disqualification penalties. written; and obstruction marking and lighting (a) * * * (3) List and summarize any investor specifications (FCC Form 854) with the (2) Default or disqualification after protection agreements, including rights FCC, PRB, Support Services Branch, close of auction. See § 1.2104(g)(2) of of first refusal, supermajority clauses, Gettysburg, PA 17325; this chapter. options, veto rights, and rights to hire (3) The applicant has indicated in the * * * * * and fire employees and to appoint application that the proposed facility 19. Section 24.309 is amended by members to boards of directors or would not have a significant revising paragraphs (b) and (f) to read as management committees. environmental effect, in accordance follows: with §§ 1.1301 through 1.1319; 13. Section 1.2113 is added to read as § 24.309 Designated entities follows: (4) Under applicable international agreements and rules in this part, * * * * * § 1.2113 Construction prior to grant of individual coordination of the proposed (b) Designated entities will be eligible application. channel assignment(s) with a foreign for certain special narrowband PCS Subject to the provisions of this administration is not required; and provisions as follows: section, applicants for licenses awarded (5) Any service-specific restrictions (1) Installment payments. (i) Small by competitive bidding may construct not listed herein. businesses, including small businesses facilities to provide service prior to owned by members of minority groups grant of their applications, but must not PART 21ÐDOMESTIC PUBLIC FIXED and women, will be eligible to pay the operate such facilities until the FCC RADIO SERVICES full amount of their winning bids on grants an authorization. If the any regional, MTA or BTA license in 14. The authority citation for part 21 installments over the term of the license conditions stated in this section are not continues to read as follows: met, applicants must not begin to pursuant to the terms set forth in construct facilities for licenses subject to Authority: Secs. 1, 2, 4, 201–205, 208, 215, § 1.2110(g) of this chapter. competitive bidding. 218, 303, 307, 313, 403, 404, 410, 602, 48 (ii) Businesses owned by members of Stat. as amended, 1064, 1066, 1070–1073, minority groups and women that are (a) When applicants may begin 1076, 1077, 1080, 1082, 1083, 1087, 1094, construction. An applicant may begin winning bidders for the regional 1098, 1102; 47 U.S.C. 151, 154, 201–205, 208, licenses indicated by an (**) in § 24.129 construction of a facility upon release of 215, 218, 303, 307, 313, 314, 403, 404, 602; the Public Notice listing the post- 47 U.S.C. 552, 554, unless otherwise noted. may pay the full amount of their winning bids (less the applicable auction long-form application for that 15. Section 21.959 is amended by facility as acceptable for filing. bidding credit and down payment) in revising paragraph (a)(2) to read as installments with (b) Notification to stop. If the FCC for follows: any reason determines that construction (A) Interest imposed based on the rate for ten-year U.S. Treasury obligations should not be started or should be § 21.959 Withdrawal, default, and stopped while an application is disqualification. applicable on the date the license is pending, and so notifies the applicant, granted, plus 2.5 percent; * * * * * (B) Interest-only payments for the first orally (followed by written (a) * * * two years; and confirmation) or in writing, the (2) Default or disqualification after (C) Principal and interest payments applicant must not begin construction close of auction. See § 1.2104 (g)(2) of amortized over the remaining eight or, if construction has begun, must stop this chapter. years of the license. construction immediately. * * * * * (2) Bidding credits. Businesses owned (c) Assumption of risk. Applicants 16. Section 21.960 is amended by by member of minority groups and that begin construction pursuant to this revising paragraphs (b)(4) and (d)(1) to women, including small businesses section before receiving an read as follows: owned by members of minority groups authorization do so at their own risk and women, will be eligible for a and have no recourse against the United § 21.960 Designated entity provisions for MDS. twenty-five (25) percent bidding credit States for any losses resulting from: when bidding on the following licenses: (1) Applications that are not granted; * * * * * (i) The nationwide licenses on (2) Errors or delays in issuing public (b) * * * Channel 5, Channel 8 and Channel 11; (4) Conditions and obligations. See notices; and (3) Having to alter, relocate or § 1.2110(f)(4) of this chapter. (ii) All MTA licenses on Channel 19, dismantle the facility; or * * * * * Channel 22, Channel 24; and (4) Incurring whatever costs may be (d) * * * (iii) All BTA licenses on Channel 26. necessary to bring the facility into (1) Unjust enrichment. See § 1.2111 of This bidding credit will reduce by 25 compliance with applicable laws, or this chapter. percent the bid price that businesses FCC rules and orders. * * * * * owned by members of minority groups

VerDate 02-DEC-97 16:40 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 E:\FR\FM\P15JA0.PT1 15jar1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2349 and women will be required to pay to interest and principal amortized over PART 27ÐWIRELESS obtain a license. Businesses owned by the remaining nine years of the license COMMUNICATIONS SERVICE women and/or minorities, including term. small businesses owned by women and/ (3) For an eligible licensee that 25. The authority citation for part 27 or minorities will be eligible for a forty qualifies as a Small business or as a continues to read as follows: (40) percent bidding credit when consortium of small businesses, interest Authority: 47 U.S.C. Sections 154, 301, bidding on all regional licenses on shall be imposed based on the rate for 302, 303, 307, 309 and 332, unless otherwise Channel 13 and Channel 17. In § 24.129, ten-year U.S. Treasury obligations noted. the licenses that will be eligible for 25 applicable on the date the license is 26. Section 27.203 is amended by percent bidding credits are indicated by granted, plus 2.5 percent; payments revising paragraph (b) to read as follows: an (*); the licenses that will be eligible shall include interest only for the first for 40 percent bidding credits are two years and payments of interest and § 27.203 Withdrawal, default and indicated by an (**). principal amortized over the remaining disqualification payments. * * * * * eight years of the license term. * * * * * (f) Unjust enrichment. Designated (4) For an eligible licensee that (b) Default or disqualification after entities using installment payments, qualifies as a business owned by close of auction. See § 1.2104(g)(2) of bidding credits or tax certificates to members of minority groups and/or this chapter. obtain a narrowband PCS license will be women, interest shall be imposed based 27. Section 27.209 is amended by subject to the unjust enrichment on the rate for ten-year U.S. Treasury revising paragraph (d) to read as provisions contained in § 1.2111 of this obligations applicable on the date the follows: chapter. license is granted; payments shall 20. Section 24.704 is amended by § 27.209 Designated entities; bidding include interest only for the first three credits; unjust enrichment. revising paragraph (a)(2) to read as years and payments of interest and follows: principal amortized over the remaining * * * * * seven years of the license term. (d) Unjust enrichment. See § 1.2111 of § 24.704 Withdrawal, default and this chapter. disqualification penalties. (5) For an eligible licensee that (a) * * * qualifies as a small business owned by PART 90ÐPRIVATE LAND MOBILE (2) Default or disqualification after members of minority groups and/or RADIO SERVICES close of auction. See § 1.2104(g)(2) of women or as a consortium of small this chapter. business owned by members of minority 28. The authority citation for part 90 groups and/or women, interest shall be continues to read as follows: * * * * * imposed based on the rate for ten-year 21. Section 24.711 is amended by Authority: Secs. 4, 251–2, 303, 309 and U.S. Treasury obligations applicable on revising paragraphs (b) and (c) to read 332, 48 Stat. 1066, 1082, as amended; 47 the date the license is granted; payments as follows: U.S.C. 154, 251–2, 303, 309 and 332, unless shall include interest only for the first otherwise noted. § 24.711 Upfront payments, down six years and payments of interest and 29. Section 90.805 is amended by payments and installment payments for principal amortized over the remaining revising paragraph (c) to read as follows: licenses for frequency Block C. four years of the license term. * * * * * (c) Unjust enrichment. See § 1.2111 of § 90.805 Withdrawal, default and (b) Installment payments. Each this chapter. disqualification payments. eligible licensee of frequency Block C or 22. Section 24.712 is amended by * * * * * F may pay the remaining 90 percent of adding paragraph (c) to read as follows: (c) Default or disqualification after the net auction price for the license in close of auction. See § 1.2104 (g)(2) of installment payments pursuant to § 24.712 Bidding credits for licenses for this chapter. frequency Block C. § 1.2110(g) of this chapter and under the 30. Section 90.812 is amended by following terms: * * * * * revising paragraphs (a) and (b) to read (1) For an eligible licensee with gross (c) Unjust enrichment. See § 1.2111 of as follows: revenues exceeding $75 million this chapter. (calculated in accordance with 23. Section 24.716 is amended by § 90.812 Installment payments for § 24.709(a)(2) and (b)) in each of the two revising paragraph (c) and (d) to read as licensees won by small businesses. preceding years (calculated in follows: (a) Installment payments. See accordance with § 24.720(f)), interest § 1.2110(f)(4) of this chapter. shall be imposed based on the rate for § 24.716 Upfront payments, down (b) Unjust enrichment. See § 1.2111(c) ten-year U.S. Treasury obligations payments, and installment payments for of this chapter. applicable on the date the license is licenses for frequency Block F. granted, plus 3.5 percent; payments * * * * * PART 95ÐPERSONAL RADIO shall include both principal and interest (c) Late installment payments. See SERVICES amortized over the term of the license. § 1.2110(f)(4) of this chapter. 31. The authority citation for part 95 (2) For an eligible licensee with gross (d) Unjust enrichment. See § 1.2111 of continues to read as follows: revenues not exceeding $75 million this chapter. (calculated in accordance with 24. Section 24.717 is amended by Authority: Secs. 4, 303, 48 Stat. 1066, § 24.709(a)(2) and (b)) in each of the two revising paragraph (c) to read as follows: 1082, as amended; 47 U.S.C. 154, 303. preceding years, interest shall be 32. Section 95.816 is amended by imposed based on the rate for ten-year § 24. 717 Bidding credits for licenses for revising paragraphs (c)(6) and (e) to read frequency Block F. U.S. Treasury obligations applicable on as follows: the date the license is granted, plus 2.5 * * * * * percent; payments shall include interest (c) Unjust enrichment. See § 1.2111 of § 95.816 Competitive bidding proceedings. only for the first year and payments of this chapter. * * * * *

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(c) * * * 3800, 1231 20th Street, NW, FOR FURTHER INFORMATION CONTACT: Pam (6) Default or disqualification. See Washington, DC 20036. Blumenthal, Mass Media Bureau, (202) § 1.2104 (g)(2) of this chapter. 418–2180. List of Subjects in 47 CFR Part 73 * * * * * SUPPLEMENTARY INFORMATION: This is a (e) Unjust enrichment. See § 1.2111 of Radio broadcasting. synopsis of the Commission’s Report this chapter. Part 73 of title 47 of the Code of and Order, MM Docket No. 97–184, * * * * * Federal Regulations is amended as adopted December 17, 1997, and [FR Doc. 98–823 Filed 1–14–98; 8:45 am] follows: released January 9, 1998. The full text of this Commission decision is available BILLING CODE 6712±01±P PART 73Ð[AMENDED] for inspection and copying during normal business hours in the FCC 1. The authority citation for Part 73 Reference Center (Room 239), 1919 M FEDERAL COMMUNICATIONS continues to read as follows: COMMISSION Street, NW, Washington, DC. The Authority: 47 U.S.C. 154, 303, 334, 336. complete text of this decision may also 47 CFR Part 73 § 73.202 [Amended] be purchased from the Commission’s copy contractor, ITS, Inc., (202) 857– 2. Section 73.202(b), the Table of FM [MM Docket No. 97±183; RM±9119] 3800, 1231 20th Street, NW, Allotments under Kansas, is amended Washington, DC 20036. Radio Broadcasting Services; by adding Channel 269C3 at Lindsborg. List of Subjects in 47 CFR Part 73 Lindsborg, KS Federal Communications Commission. John A. Karousos, Radio broadcasting. AGENCY: Federal Communications Part 73 of title 47 of the Code of Commission. Chief, Allocations Branch, Policy and Rules Division, Mass Media Bureau. Federal Regulations is amended as ACTION: Final rule. [FR Doc. 98–1030 Filed 1–14–98; 8:45 am] follows: SUMMARY: The Commission, at the BILLING CODE 6712±01±P PART 73Ð[AMENDED] request of Michael D. Law, allots Channel 269C3 to Lindsborg, Kansas, as 1. The authority citation for Part 73 the community’s second local FM FEDERAL COMMUNICATIONS continues to read as follows: COMMISSION service. See 62 FR 45785, August 29, Authority: 47 U.S.C. 154, 303, 334, 336. 1997. Channel 269C3 can be allotted to 47 CFR Part 73 Lindsborg in compliance with the § 73.202 [Amended] Commission’s minimum distance 2. Section 73.202(b), the Table of FM separation requirements with a site [MM Docket No. 97±184; RM±9120] Allotments under Mississippi, is restriction of 8.6 kilometers (5.4 miles) amended by adding New Augusta, Radio Broadcasting Services; New Channel 269A. north in order to avoid short-spacing Augusta, MS conflicts with the licensed operations of Federal Communications Commission. Station KFDI–FM, Channel 267C, AGENCY: Federal Communications John A. Karousos, Wichita, Kansas; Station KVOE–FM, Commission. Chief, Allocations Branch, Policy and Rules Channel 269A, Emporia, Kansas; and ACTION: Final rule. Division, Mass Media Bureau. Station KZSN–FM, Channel 271C, [FR Doc. 98–1029 Filed 1–14–98; 8:45 am] Hutchinson, Kansas. The coordinates for SUMMARY: The Commission, at the BILLING CODE 6712±01±P Channel 269C3 at Lindsborg are 38–39– request of Community Broadcasting 03 NL and 97–42–12 WL. With this Company, allots Channel 269A to New action, this proceeding is terminated. Augusta, Mississippi, as the FEDERAL COMMUNICATIONS EFFECTIVE DATE: February 23, 1998. A community’s first local aural COMMISSION filing window for Channel 269C3 at transmission service. See 62 FR 45784, Lindsborg, Kansas, will not be opened at August 29, 1997. Channel 269A can be 47 CFR Part 73 this time. Instead, the issue of opening allotted to New Augusta, Mississippi, in [MM Docket No. 97±65; RM±9002] a filing window for this channel will be compliance with the Commission’s addressed by the Commission in a minimum distance separation Radio Broadcasting Services; subsequent order. requirements with a site restriction of Chewelah, WA FOR FURTHER INFORMATION CONTACT: Pam 7.8 kilometers (4.9 miles) northwest in AGENCY: Federal Communications order to avoid a short-spacing conflict Blumenthal, Mass Media Bureau, (202) Commission. 418–2180. with the site specified in Station ACTION: Final rule. SUPPLEMENTARY INFORMATION: This is a WTKX–FM’s construction permit for synopsis of the Commission’s Report Channel 268C, Pensacola, Florida. The SUMMARY: The Commission, at the and Order, MM Docket No. 97–183, coordinates for Channel 269A at New request of LifeTalk Broadcasting adopted December 17, 1997, and Augusta are 31–13–41 NL and 89–06–47 Association, allots Channel *274C3 at released January 9, 1998. The full text WL. With this action, this proceeding is Chewelah, Washington, and reserves the of this Commission decision is available terminated. channel for noncommercial educational for inspection and copying during EFFECTIVE DATE: February 23, 1998. A use as the community’s first local aural normal business hours in the FCC filing window for Channel 269A at New transmission service. See 62 FR 7981, Reference Center (Room 239), 1919 M Augusta, Mississippi will not be opened February 21, 1997. Channel *274C3 can Street, NW, Washington, DC. The at this time. Instead, the issue of be allotted to Chewelah in compliance complete text of this decision may also opening a filing window for this with the Commission’s minimum be purchased from the Commission’s channel will be addressed by the distance separation requirements with a copy contractor, ITS, Inc., (202) 857– Commission in a subsequent order. site restriction of 21.8 kilometers (13.6

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Channel 267A can be FEDERAL COMMUNICATIONS Canadian government has been allotted to Westport in compliance with COMMISSION obtained. With this action, this the Commission’s minimum distance proceeding is terminated. separation requirements at city 47 CFR Part 73 EFFECTIVE DATE: February 23, 1998. reference coordinates. The coordinates [MM Docket No. 97±44; RM±8974] FOR FURTHER INFORMATION CONTACT: for Channel 267A at Westport are North Sharon P. McDonald, Mass Media Latitude 46–53–24 and West Longitude Radio Broadcasting Services; Mills, Bureau, (202) 418–2180. 124–06–06. Since Westport is located WY SUPPLEMENTARY INFORMATION: This is a within 320 kilometers (200 miles) of the AGENCY: Federal Communications U.S.-Canadian border, concurrence of synopsis of the Commission’s Report Commission. and Order, MM Docket No. 97–65, the Canadian government has been adopted December 24, 1997, and obtained. With this action, this ACTION: Final rule. proceeding is terminated. released January 9, 1998. The full text SUMMARY: The Commission, at the of this Commission decision is available EFFECTIVE DATE: February 23, 1998. A request of Mountain Tower for inspection and copying during filing window for Channel 267A at Broadcasting, allots Channel 288A at normal business hours in the FCC Westport, Washington, will not be Mills, Wyoming, as the community’s Reference Center (Room 239), 1919 M opened at this time. Instead, the issue of first local aural transmission service. Street, NW., Washington, DC. The opening a filing window for this See 62 FR 5791, February 7, 1997. complete text of this decision may also channel will be addressed by the Channel 288A can be allotted to Mills be purchased from the Commission’s Commission in a subsequent order. in compliance with the Commission’s copy contractors, International minimum distance separation FOR FURTHER INFORMATION CONTACT: Transcription Service, Inc., (202) 857– requirements at city reference 3800, 1231 20th Street, NW., Sharon P. McDonald, Mass Media coordinates. The coordinates for Washington, DC 20036. Bureau, (202) 418–2180. Channel 288A at Mills are North List of Subjects in 47 CFR Part 73 SUPPLEMENTARY INFORMATION: This is a Latitude 42–50–24 and West Longitude Radio broadcasting. synopsis of the Commission’s Report 106–22–06. With this action, this Part 73 of Title 47 of the Code of and Order, MM Docket No. 97–83, proceeding is terminated. Federal Regulations is amended as adopted December 17, 1997, and EFFECTIVE DATE: February 23, 1998. A follows: released January 9, 1998. The full text filing window for Channel 288A at of this Commission decision is available Mills, Wyoming, will not be opened at PART 73Ð[AMENDED] for inspection and copying during this time. Instead, the issue of opening normal business hours in the FCC a filing window for this channel will be 1. The authority citation for Part 73 Reference Center (Room 239), 1919 M addressed by the Commission in a continues to read as follows: Street, NW., Washington, DC. The subsequent order. Authority: 47 U.S.C. 154, 303, 334, 336. complete text of this decision may also FOR FURTHER INFORMATION CONTACT: § 73.202 [Amended] be purchased from the Commission’s Sharon P. McDonald, Mass Media copy contractors, International Bureau, (202) 418–2180. 2. Section 73.202(b), the Table of FM Transcription Service, Inc., (202) 857– SUPPLEMENTARY INFORMATION: This is a Allotments under Washington, is 3800, 1231 20th Street, NW., synopsis of the Commission’s Report amended by adding Chewelah, Channel Washington, DC 20036. *274C3. and Order, MM Docket No. 97–44, Federal Communications Commission. List of Subjects in 47 CFR Part 73 adopted December 17, 1997, and John A. Karousos, released January 9, 1998. The full text Radio broadcasting. of this Commission decision is available Chief, Allocations Branch, Policy and Rules Division, Mass Media Bureau. Part 73 of Title 47 of the Code of for inspection and copying during normal business hours in the FCC [FR Doc. 98–1028 Filed 1–14–98; 8:45 am] Federal Regulations is amended as follows: Reference Center (Room 239), 1919 M BILLING CODE 6712±01±P Street, NW., Washington, DC. The PART 73Ð[AMENDED] complete text of this decision may also FEDERAL COMMUNICATIONS be purchased from the Commission’s COMMISSION 1. The authority citation for Part 73 copy contractors, International continues to read as follows: Transcription Service, Inc., (202) 857– 47 CFR Part 73 Authority: 47 U.S.C. 154, 303, 334, 336. 3800, 1231 20th Street, NW., Washington, DC 20036. [MM Docket No. 97±83; RM±8948] § 73.202 [Amended] List of Subjects in 47 CFR Part 73 Radio Broadcasting Services; Westport, WA 2. Section 73.202(b), the Table of FM Radio broadcasting. Allotments under Washington, is Part 73 of Title 47 of the Code of AGENCY: Federal Communications amended by adding Westport, Channel Federal Regulations is amended as Commission. 267A. follows:

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PART 73Ð[AMENDED] 1. The authority citation for Part 73 continues to read as follows: Authority: 47 U.S.C. 154, 303, 334, 336.

§ 73.202 [Amended] 2. Section 73.202(b), the Table of FM Allotments under Wyoming, is amended by adding Mills, Channel 288A. Federal Communications Commission. John A. Karousos, Chief, Allocations Branch, Policy and Rules Division, Mass Media Bureau. [FR Doc. 98–1026 Filed 1–14–98; 8:45 am] BILLING CODE 6712±01±P

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Proposed Rules Federal Register Vol. 63, No. 10

Thursday, January 15, 1998

This section of the FEDERAL REGISTER SUPPLEMENTARY INFORMATION: chapter 35), the information collection contains notices to the public of the proposed Executive Order 12866 and recordkeeping requirements in part issuance of rules and regulations. The 868 have been approved previously by purpose of these notices is to give interested This rule has been determined to be OMB and assigned OMB No. 0580– persons an opportunity to participate in the nonsignificant for the purpose of 0013. rule making prior to the adoption of the final Executive Order 12866, and therefore rules. has not been reviewed by the Office of Background Management and Budget. GIPSA is committed to carrying out DEPARTMENT OF AGRICULTURE Executive Order 12988 its statutory and regulatory mandates in a cost effective manner that best serves This rule has been reviewed under Grain Inspection, Packers and the public interest. Concurrently, GIPSA Executive Order 12988, Civil Justice Stockyards Administration is constantly seeking ways to reduce the Reform. This rule is not intended to cost of providing official services, have preemptive effect with respect to 7 CFR Part 868 without reducing the quality of that any State or local laws, regulations, or service. One measure that has proven policies unless they present an effective is the use of contract samplers RIN No. 0580±AA54 irreconcilable conflict with this rule. at outlying service points or during This rule is not intended to have General Regulations and Standards for periods of peak demand. By judiciously retroactive effect. There are no Certain Agricultural Commodities using contract samplers, GIPSA field administrative procedures which must offices and State cooperators have been be exhausted prior to any judicial AGENCY: Grain Inspection, Packers and able to reduce their operating expenses challenge to the provisions of this rule Stockyards Administration, USDA. and, in many cases, provide quicker or application of its provisions. service to their applicants for services. ACTION: Proposed rule. Effects on Small Entities GIPSA believes that contract inspections may be equally beneficial in certain SUMMARY: The Grain Inspection, Packers GIPSA has determined that this situations; e.g., providing quality and Stockyards Administration (GIPSA) proposed rule will not have a significant inspections on an intermittent basis at is proposing to amend the regulations economic impact on a substantial geographically isolated service points. under the Agricultural Marketing Act number of small entities as defined Additionally, GIPSA feels that allowing (Act) of 1946 to allow GIPSA and State under the Regulatory Flexibility Act (5 GIPSA and State cooperators to contract cooperators to use contractors to U.S.C. 601 et seq.). GIPSA believes that with private firms, institutions, perform specified inspection services. allowing contracts with private firms, individuals, and others for inspection GIPSA has determined that private institutions, individuals, and others for work will foster more cost-effective firms, institutions, and individuals, inspection work will foster more cost- operations, which in turn, may lessen working under contract with GIPSA effective operations. Many users of the the need for future fee increases. field offices and State cooperators may inspection services do not meet the be able to perform some inspection requirements for small entities as The Act of 1946, as amended, services, at certain locations, more defined in the Regulatory Flexibility provides authority to the Secretary of effectively or at less cost than if those Act. For example, the primary user of Agriculture to enter into contracts and services were performed by Department pulse inspection services is the U.S. agreements with States and agencies of or State employees. Consequently, government. It is estimated that between States, private firms, institutions, and GIPSA is proposing to amend the 80 and 90 percent of all inspections are individuals for the purpose of regulations to allow GIPSA and State performed (directly or indirectly) at the performing specified inspection cooperators to contract for service work request of either the USDA’s Farm services. According to section and to license individual contractors Service Agency or Foreign Agricultural 868.1(b)(23) of the regulations, such and those employed by contractors. Service, or the U.S. Agency for services may include ‘‘applying such International Development. The tests and making examinations of a DATES: Comments must be received on proposed change would allow GIPSA commodity and records by official or before March 16, 1998. and the 13 State cooperators to use personnel as may be necessary to determine the kind, class, grade, other ADDRESSES: Written comments must be contractors to perform specified quality designation, the quantity, or submitted to George Wollam, USDA, inspection services. Currently, contract condition of commodity; performing GIPSA, ART, Stop 3649, Washington, samplers are used by both GIPSA and condition of container, carrier stowage DC 20250–3649; FAX (202) 720–4628. State cooperators which has resulted in examination; and any other services as All comments received will be made reduced operating expenses and, in related to commodities, as necessary; available for public inspection in Room many cases, quicker services to and issuing an inspection certificate.’’ 0623, USDA South Building, 1400 applicants for services. It is expected However, section 868.80(a)(1) of the Independence Avenue, SW., that this action would result in similar regulations states that only persons Washington, DC, during regular benefits. employed by a cooperator may be business hours (7 CFR 1.27(b)). Information Collection and licensed to inspect commodities or to FOR FURTHER INFORMATION CONTACT: Recordkeeping Requirements perform related services. Consequently, George Wollam, address same as above, In compliance with the Paperwork GIPSA is proposing to amend the telephone (202) 720–0292. Reduction Act of 1980 (44 U.S.C. regulations to provide for GIPSA and

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State cooperators to contract for quality FEDERAL COMMUNICATIONS ACTION: Proposed rule. (grading) inspection services and to COMMISSION license individual contractors and those SUMMARY: This document requests employed by a contractor. 47 CFR Part 73 comments on a petition filed by Max Media proposing the allotment of [MM Docket No. 97±201; RM±9127] Proposed Action Channel 243A to Columbia City, Florida, as that community’s first local To provide for more responsive, cost- Radio Broadcasting Services; Crested Butte, CO broadcast service. The channel can be effective inspection services under the allotted to Columbia City without a site Act of 1946, GIPSA is proposing to AGENCY: Federal Communications restriction at coordinates 30–04–12 and revise: Commission. 82–41–42. 1. Section 868.1(b)(13) to expand the ACTION: Proposed rule; dismissal. DATES: Comments must be filed on or definition of contractor to provide for before March 2, 1998, and reply SUMMARY: This document dismisses a cooperators to use contractors for comments on or before March 17, 1998. specified services. petition filed on behalf of Crested Butte Broadcasting Company, which ADDRESSES: Federal Communications 2. Section 868.80(a)(1) to add requested the allotment of Channel Commission, Washington, DC 20554. In provisions for licensing individual 293A to Crested Butte, Colorado, as that addition to filing comments with the contractors and employees of community’s first local commercial FM FCC, interested parties should serve the contractors. transmission service, based upon the petitioner’s counsel, as follows: Donald E. Martin, P.O. Box 19351, Washington, List of Subjects in 7 CFR Part 868 lack of an expression of interest in pursuing the proposal by the petitioner DC 20036. Administrative practice and or any other party. See 62 FR 49189, FOR FURTHER INFORMATION CONTACT: procedure, Agricultural commodities. September 19, 1997. With this action, Kathleen Scheuerle, Mass Media For reasons set forth in the preamble, the proceeding is terminated. Bureau, (202) 418–2180. 7 CFR Part 868 is proposed to be ADDRESSES: Federal Communications SUPPLEMENTARY INFORMATION: This is a amended as follows: Commission, Washington, DC 20554. summary of the Commission’s Notice of FOR FURTHER INFORMATION CONTACT: Proposed Rule Making, MM Docket No. PART 868ÐGENERAL REGULATIONS Nancy Joyner, Mass Media Bureau, (202) 97–252, adopted December 17, 1997, AND STANDARDS FOR CERTAIN 418–2180. and released January 9, 1998. The full AGRICULTURAL COMMODITIES SUPPLEMENTARY INFORMATION: This is a text of this Commission decision is synopsis of the Commission’s Report available for inspection and copying 1. The authority citation for Part 868 and Order, MM Docket No. 97–201, during normal business hours in the continues to read as follows: adopted December 22, 1997, and Commission’s Reference Center (Room Authority: Secs. 202–208, 60 Stat. 1087, as released January 9, 1998. The full text 239), 1919 M Street, NW., Washington, amended (7 U.S.C. 1621 et seq.). of this Commission decision is available DC. The complete text of this decision for inspection and copying during may also be purchased from the 2. Section 868.1(b)(13) is revised to normal business hours in the FCC’s Commission’s copy contractors, read as follows: Reference Center (Room 239), 1919 M International Transcription Services, Street, NW., Washington, DC. The Inc., 1231 20th Street, NW., § 868.1 Meaning of terms. complete text of this decision may also Washington, DC 20036, (202) 857–3800, * * * * * be purchased from the Commission’s facsimile (202) 857–3805. (b) * * * copy contractor, International Provisions of the Regulatory Transcription Service, Inc., 1231 20th Flexibility Act of 1980 do not apply to (13) Contractor. Any person who Street, NW., Washington, DC 20036, this proceeding. enters into a contract with the Service (202) 857–3800. or with a cooperator to perform Members of the public should note that from the time a Notice of Proposed specified inspection services. List of Subjects in 47 CFR Part 73 Rule Making is issued until the matter * * * * * Radio broadcasting. is no longer subject to Commission 2. Section 868.80(a)(1) is revised to Federal Communications Commission. consideration or court review, all ex read as follows: John A. Karousos, parte contacts are prohibited in Chief, Allocations Branch, Policy and Rules Commission proceedings, such as this § 868.80 Who may be licensed. Division, Mass Media Bureau. one, which involve channel allotments. (a) Inspectors. *** [FR Doc. 98–1025 Filed 1–14–98; 8:45 am] See 47 CFR 1.1204(b) for rules governing permissible ex parte contact. (1) Is employed by a cooperator, is a BILLING CODE 6712±01±P For information regarding proper contractor, or is employed by a filing procedures for comments, see 47 contractor. FEDERAL COMMUNICATIONS CFR 1.415 and 1.420. * * * * * COMMISSION Dated: January 9, 1998. List of Subjects in 47 CFR Part 73 James R. Baker, 47 CFR Part 73 Radio broadcasting. Administrator, Grain Inspection, Packers and [MM Docket No. 97±252, RM±9206] Federal Communications Commission. Stockyards Administration. John A. Karousos, [FR Doc. 98–920 Filed 1–14–98; 8:45 am] Radio Broadcasting Services; Columbia City, FL Chief, Allocations Branch, Policy and Rules BILLING CODE 3410±EN±P Division, Mass Media Bureau. AGENCY: Federal Communications [FR Doc. 98–1024 Filed 1–14–98; 8:45 am] Commission. BILLING CODE 6712±01±P

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FEDERAL COMMUNICATIONS also be purchased from the Section 1.420(i) of the Commission’s COMMISSION Commission’s copy contractor, ITS, Inc., Rules, we will not accept competing (202) 857–3800, 1231 20th Street, NW, expressions of interest in use of Channel 47 CFR Part 73 Washington, DC 20036. 295C3 at Ore City. Provisions of the Regulatory [MM Docket No. 97±251, RM±9199] DATES: Comments must be filed on or Flexibility Act of 1980 do not apply to before March 2, 1998, and reply Radio Broadcasting Services; this proceeding. comments on or before March 17, 1998. Breckenridge and Graford, TX Members of the public should note that from the time a Notice of Proposed ADDRESSES: Federal Communications AGENCY: Federal Communications Rule Making is issued until the matter Commission, Washington, DC 20554. In Commission. is no longer subject to Commission addition to filing comments with the ACTION: Proposed rule. consideration or court review, all ex FCC, interested parties should serve the parte contacts are prohibited in petitioner, or its counsel or consultant, SUMMARY: The Commission requests as follows: James P. Riley, Fletcher, comments on a petition filed by Big Commission proceedings, such as this one, which involve channel allotments. Heald & Hildreth, P.L.C., 11th Floor, Country Radio, Inc., licensee of Station 1300 North 17th Street, Rosslyn, KLXK(FM), Breckenridge, Texas, See 47 CFR 1.1204(b) for rules governing permissible ex parte contacts. Virginia 22209–3801 (Counsel for requesting the substitution of Channel petitioner). 228C3 for Channel 228C2 at For information regarding proper Breckenridge; the reallotment of filing procedures for comments, see 47 FOR FURTHER INFORMATION CONTACT: Pam Channel 228C3 from Breckenridge to CFR 1.415 and 1.420. Blumenthal, Mass Media Bureau, (202) Graford; and, the modification of Station List of Subjects in 47 CFR Part 73 418–2180. KLXK(FM) authorization to specify Radio broadcasting. SUPPLEMENTARY INFORMATION: This is a Graford as its community of license. synopsis of the Commission’s Notice of Channel 228C3 can be allotted to Federal Communications Commission. Proposed Rule Making, MM Docket No. Graford in compliance with the John A. Karousos, 97–253, adopted December 24, 1997, Commission’s minimum distance Chief, Allocations Branch, Policy and Rules and released January 9, 1998. The full separation requirements with a site Division, Mass Media Bureau. text of this Commission decision is restriction 21.7 kilometers (13.5 miles) [FR Doc. 98–1023 Filed 1–14–98; 8:45 am] available for inspection and copying northwest. The coordinates for Channel BILLING CODE 6712±01±P during normal business hours in the 228C3 at Graford are 33–06–51 NL and FCC’s Reference Center (Room 239), 98–19–57 WL. In accordance with the 1919 M Street, NW, Washington, DC. provision of Section 1.420(i) of the FEDERAL COMMUNICATIONS The complete text of this decision may Commission’s Rules, we will not accept COMMISSION also be purchased from the competing expressions of interest in use Commission’s copy contractor, ITS, Inc., 47 CFR Part 73 of Channel 228C3 at Graford. (202) 857–3800, 1231 20th Street, NW, DATES: Comments must be filed on or [MM Docket No. 97±253, RM±9198] Washington, DC 20036. before March 2, 1998, and reply Provisions of the Regulatory Radio Broadcasting Services; comments on or before March 17, 1998. Flexibility Act of 1980 do not apply to Daingerfield and Ore City, TX ADDRESSES: Federal Communications this proceeding. Commission, Washington, DC 20554. In AGENCY: Federal Communications Members of the public should note addition to filing comments with the Commission. that from the time a Notice of Proposed FCC, interested parties should serve the ACTION: Proposed rule. Rule Making is issued until the matter petitioner, or its counsel or consultant, is no longer subject to Commission as follows: Ann Bavender, Fletcher, SUMMARY: The Commission requests consideration or court review, all ex Heald & Hildreth, P.L.C., 11th Floor, comments on a petition filed by OARA, parte contacts are prohibited in 1300 North 17th Street, Rosslyn, Inc., licensee of Station KWSK(FM), Commission proceedings, such as this Virginia 22209–3801 (Counsel for Channel 295A, Daingerfield, Texas, one, which involve channel allotments. petitioner). requesting the substitution of Channel See 47 CFR 1.1204(b) for rules FOR FURTHER INFORMATION CONTACT: Pam 295C3 for Channel 295A; the governing permissible ex parte contacts. Blumenthal, Mass Media Bureau, (202) reallotment of Channel 295C3 from For information regarding proper 418–2180. Daingerfield to Ore City; and, the filing procedures for comments, see 47 SUPPLEMENTARY INFORMATION: This is a modification of Station KWSK(FM)’s CFR 1.415 and 1.420. synopsis of the Commission’s Notice of license to specify Ore City as its Proposed Rule Making, MM Docket No. community of license. Channel 295C3 List of Subjects in 47 CFR Part 73 97–251, adopted December 17, 1997, can be allotted to Ore City in Radio broadcasting. and released January 9, 1998. The full compliance with the Commission’s text of this Commission decision is minimum distance separation Federal Communications Commission. available for inspection and copying requirements with a site restriction to John A. Karousos, during normal business hours in the accommodate OARA’s desired site. The Chief, Allocations Branch, Policy and Rules FCC’s Reference Center (Room 239), coordinates for Channel 295C3 at Ore Division, Mass Media Bureau. 1919 M Street, NW, Washington, DC. City are 32–52–55 NL and 94–49–18 [FR Doc. 98–1022 Filed 1–14–98; 8:45 am] The complete text of this decision may WL. In accordance with the provision of BILLING CODE 6712±01±P

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Notices Federal Register Vol. 63, No. 10

Thursday, January 15, 1998

This section of the FEDERAL REGISTER Room 0709, South Building; STOP States Standards for Grades of Canned contains documents other than rules or 0247, P.O. Box 96456, Washington, DC Beets; Canned Carrots; and Canned proposed rules that are applicable to the 20090–6456; faxed to (202) 690–1087; or White Potatoes. public. Notices of hearings and investigations, e-mailed to NFPA is a scientifically and committee meetings, agency decisions and [email protected]. technically-based trade association rulings, delegations of authority, filing of Comments should reference the date petitions and applications and agency representing over 550 food industry 1 statements of organization and functions are and page number of this issue of the companies. NFPA requested that the examples of documents appearing in this Federal Register. All comments recommended drained weight of the No. section. received will be made available for 300 size container be reviewed for all public inspection at the above address styles of canned root crop vegetables. during regular business hours (8 a.m.– Within the last few years the canning DEPARTMENT OF AGRICULTURE 4:30 p.m.). industry has been replacing production The current U.S. grade standards for of the No. 303 container size with the Agricultural Marketing Service these canned root crop vegetables, along No. 300 container. The total water with the proposed changes, are available capacity for the No. 300 container is less United States Standards for Grades of either through the above addresses or by than the total water capacity for a No. Canned Beets, United States accessing AMS’s Home Page on the 303 container. The percentage water Standards for Grades of Canned Internet at www.ams.usda.gov/ capacity, on which the recommended Carrots and the United States standards/vegcan.htm. minimum drained weight average is Standards for Grades of Canned White FOR FURTHER INFORMATION CONTACT: based, is calculated by dividing the Potatoes Chere L. Shorter at (202) 720–4693. RMDWA for a particular style of canned [FV±97±329N] SUPPLEMENTARY INFORMATION: Section root crop vegetable by the total water AGENCY: Agricultural Marketing Service, 203(c) of the Agricultural Marketing Act capacity of the container. Studies done USDA. of 1946, as amended, directs and by the USDA have found that for every ACTION: Notice. authorizes the Secretary of Agriculture style of canned root crop vegetable ‘‘to develop and improve standards of under consideration, in the current U.S. SUMMARY: The Agricultural Marketing quality, condition, quantity, grade, and standards, the drained weight as a Service (AMS) of the Department of packaging and recommend and percentage of the water capacity is Agriculture (USDA) is soliciting demonstrate such standards in order to significantly more for the No. 300 comments on its proposal to change the encourage uniformity and consistency container than for No. 303 containers, United States Standards for Grades of in commercial practices * * *’’. AMS even though the available capacity of Canned Beets, the United States is committed to carrying out this the No. 300 container is 9.02 percent Standards for Grades of Canned Carrots, authority in a manner that facilitates the less than that of the No. 303 container. and the United States Standards for marketing of agricultural commodities NFPA states that several companies Grades of Canned White Potatoes and makes copies of official standards are noting difficulty in meeting the (canned root crop vegetables). available upon request. The United RMDWA requirements for these Specifically, USDA is proposing to States Standards for Grades of Canned products in the No. 300 cans. In some adjust the Recommended Minimum Beets, the United States Standards for instances, critical fill weight maximums Drained Weight Averages (RMDWA’s) Grades of Canned Carrots, and the have been exceeded, causing companies for all styles packed in No. 300 size cans United States Standards for Grades of to reevaluate their thermal processing to be equivalent to the percent water Canned White Potatoes (canned root schedules to be sure their product is capacity corresponding to the closest crop vegetables) do not appear in the sterile. Some companies are targeting sized container, the No. 303 can, i.e., Code of Federal Regulations but are lower than the RMDWA’s. One effect of reduced by 9.02 percent. These changes maintained by USDA. targeting too low is that production may are being requested by industry in order AMS is proposing to change the not meet the buyers’ specifications for to improve the useability of the U.S. United States Standards for Grades of the RMDWA’s because there may be a standards for these canned root crop Canned Beets, the United States high percentage of slack filled cans. vegetables. In addition, USDA will Standards for Grades of Canned Carrots, This situation may result in a demand further improve the standards and and the United States Standards for from buyers for a discount in price. To promote consistency by changing the Grades of Canned White Potatoes using meet USDA requirements for drained format of the tables to incorporate a the procedures it published in the weight, processors, by putting more column for the water capacity of each August 13, 1997, Federal Register and product into the can than may be container size and add metric system that appear in part 36 of Title 7 of the necessary, have sustained economic tables to the canned beets and canned Code of Federal Regulations (7 CFR part hardship, damage to the product, and carrots standards. 36). sometimes loss of the integrity to the DATES: Comments must be submitted on In November 1993, USDA received a can seal. When the seal’s integrity is lost or before March 16, 1998. request to review the RMDWA’s for during processing, the product’s ADDRESSES: Written comments may be these canned root crops in No. 300 size wholesomeness is jeopardized. submitted to Chere L. Shorter, Processed containers from the National Food The remedies recommended by NFPA Products Branch, Fruit and Vegetable Processors Association’s (NFPA)’s Grade propose that the RMDWA’s in the U.S. Programs, Agricultural Marketing Standards Review Subcommittee. NFPA Service, U.S. Department of Agriculture, requested the changes in the United 1 Source—USDA, NASS, ASB.

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00001 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2357 standards for grades of canned beets; Beets; Canned Carrots; and Canned requesting a decrease in the canned carrots; and canned white White Potatoes by making changes to recommended drained weight for potatoes be reduced to the same and adding the following tables: Canned sweetpotatoes packed in retail size cans percentage water capacity offered in the Beets, Table I, adding Table IA, Canned including No. 10 cans. The drained No. 303 container size, i.e. lowered by Carrots, Table I, adding Table IA, and weight recommendations would also 9.02 percent. The No. 303 can size was Canned White Potatoes, Table I and add No. 300 cans, a size pack which has chosen because the size relationship is Table IA. Specifically, the changes will: been increasingly utilized in the closest to the No. 300 can. In (1) adjust the RMDWA’s for No. 300 industry. These changes would allow consideration of this proposal, the containers which were calculated using more equitable utilization of processed Standardization Section of the the percentage water capacity sweetpotatoes across domestic growing Processed Products Branch, Fruit and corresponding to No. 303 containers and regions and will help the sweetpotato Vegetable Programs, AMS, initiated a lowered accordingly by 9.02 percent of industry to meet its market needs. study to review the current grade the RMDWA of the 303 size container; DATES: Comments must be submitted on standards for canned root crop and further improve the standards and or before March 16, 1998. vegetables packed in No. 300 containers. promote consistency by (2) changing the ADDRESSES: Interested persons are Several companies were asked to submit format to include tables that will invited to submit their written data on drained weight for the two most incorporate the water capacity of each comments to Karen L. Kaufman, prevalent styles of each canned root container size; and (3) adding metric Processed Products Branch, Fruit and crop vegetable under consideration, system tables to the canned beet and Vegetable Division, Agricultural mainly sliced and whole beets, diced canned carrot standards. Marketing Service, U.S. Department of and sliced carrots and sliced and whole These changes, if adopted, would Agriculture, STOP 0247, P.O. Box potatoes. Seven PPB area field offices improve the grade standards by making 96456, Washington, D.C. 20090–6456; also collected samples and determined RMDWA’s proportional for the No. 300 faxed to (202) 690–1087; or e-mailed to drained weight measurements for these can size, ensure safety of the product, [email protected]. commodities. The independent findings and help to facilitate the marketing of Comments should reference the date provided a cross-sectional canned beets, carrots and white and page number of this issue of the representation of the marketplace and potatoes, allowing a more equitable Federal Register. The petitions and served as a benchmark for industry data. marketing environment for the canning comments will be made available for The drained weight data provided by industry. The affected trade has public inspection at the above address the industry and by AMS for the No. recommended and reviewed these during regular business hours. 300 containers were then combined and changes, therefore AMS is publishing The current United States Standards examined. In 1996 the data and this notice with a 60 day comment for Grades of Canned Sweetpotatoes, conclusions were published in a report period which will provide sufficient along with the proposed changes, are on file with USDA titled, ‘‘Drained amount of time for interested persons to available through the above addresses or Weight Study, 1995 Report on Proposal comment on changes to the standards. by accessing AMS’s Home Page on the to Lower Recommended Minimum Authority: 7 U.S.C. 1621–1627. Internet at: www.ams.usda.gov/ Drained Weights for Root Vegetables standards/vegcan.htm. Packed in No. 300 Containers.’’ Dated: January 9, 1998. The conclusions of the report do Robert C. Keeney, FOR FURTHER INFORMATION CONTACT: Karen L Kaufman at (202) 720–5021. substantiate that there is some merit in Deputy Administrator, Fruit and Vegetable the industry proposal to decrease the Programs. SUPPLEMENTARY INFORMATION: Section recommended minimum drained [FR Doc. 98–1053 Filed 1–14–98; 8:45 am] 203(c) of the Agricultural Marketing Act of 1946, as amended, directs and weights in the U.S. grade standards for BILLING CODE 3410±02±P canned beets; carrots; and white authorizes the Secretary of Agriculture potatoes packed in No. 300 containers. ‘‘to develop and improve standards of Currently, the percentage water DEPARTMENT OF AGRICULTURE quality, condition, grade, and packaging capacity, which is the ratio of the and recommend and demonstrate such RMDWA and the water capacity of a Agricultural Marketing Service standards in order to encourage uniformity and consistency in container, is significantly higher in all [FV±97±328N] cases for the smaller No. 300 container commercial practices * * *’’ The than for the No. 303 containers. For United States Standards for Grades of Agricultural Marketing Service (AMS) is example, in diced beets, the RMDWA Canned Sweetpotatoes committed to carrying out this authority for the No. 300 container is 10.0 ounces, in a manner that facilitates the and the RMDWA for the No. 303 AGENCY: Agricultural Marketing Service, marketing of agricultural commodities. container is 10.5 ounces. The percent USDA. The United States Standards for Grades water capacity represented by 10.0 ACTION: Notice. of Canned Sweetpotatoes do not appear ounces is 65.8 percent, while 10.5 in the Code of Federal Regulations but ounces represents a percent water SUMMARY: The Agricultural Marketing are maintained by the U.S. Department capacity of only 62.3 percent. Service (AMS) is soliciting comments of Agriculture. Copies of official Based on this information USDA has on its proposal to change the voluntary standards are available upon request. found that new RMDWA’s for No. 300 United States Standards for Grades of AMS is proposing to change the containers, making the percentage water Canned Sweetpotatoes. Specifically, United States Standards for Grades of capacities more consistent with those of AMS proposes to lower the Canned Sweetpotatoes using the the No. 303 containers, should be recommended drained weights for procedures it published in the August considered. canned sweetpotatoes packed in retail 13, 1997, Federal Register and that Based on these findings, AMS agrees size cans by two percent. AMS has appear in part 36 of title 7 of the Code with the recommendations from NFPA received petitions to revise the United of Federal Regulations (7 CFR part 36). and proposes to improve the United States Standards for Grades of Canned Specifically, AMS is proposing to lower States Standards for Grades of Canned Sweetpotatoes. The petitioners are the recommended drained weight for

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00002 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2358 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices sweetpotatoes packed in retail size cans, varieties of sweetpotatoes (i.e. No. 300 cans along with the other including No. 10 size cans, by two Beauregard), the cans must be over- drained weight changes in the standard. percent. The drained weight criteria for filled. This condition may cause damage A 60-day comment period is provided the No. 300 can, a size pack which has to the sweetpotatoes resulting in for interested persons to comment on been increasingly utilized in the downgrading the product, and may have changes to the standards. industry, would also be added. This an adverse effect on the integrity of the Authority: 7 U.S.C. 1621–1627. change would allow a more equitable can seam closure. If the seal’s integrity Dated: January 9, 1998. marketing environment for domestic is lost during processing, the product’s Robert C. Keeney, sweetpotato processors. wholesomeness is jeopardized. AMS received petitions from the The petitioners contend that a Deputy Administrator, Fruit and Vegetable Sweet Potato Council of the United unilateral reduction in drained weight Programs. States, and the North Carolina Sweet requirements in the grade standard is [FR Doc. 98–1054 Filed 1–14–98; 8:45 am] Potato Commission and three processors indicated due to the varietal BILLING CODE 3410±02±P requesting the revision of the United characteristics of sweetpotatoes States Standards for Grades of Canned currently available for processing. Sweetpotatoes. AMS has reviewed the petitions and DEPARTMENT OF AGRICULTURE The petitioners represent a significant data submitted, and has gathered Forest Service part of the canned sweetpotato industry. information from government and The Louisiana, Mississippi, and North industry sources. Initial findings do Authorizing BLM To Offer Oil and Gas Carolina sweetpotato industry provides substantiate that there may be a Leases in Management Areas 21, 45, over half of the sweetpotatoes produced disparity between the drained weights 71, 72; Bridger-Teton National Forest; 1 domestically. for canned sweetpotatoes processed Teton, Sublette and Fremont Counties, The petitions indicate that the before 1985 and those processed since Wyoming recommended drained weights for the newer varieties have become canned sweetpotatoes packed in retail predominant. AGENCY: Forest Service, USDA—Lead size cans, as shown in the U.S. One study showed that in 1989, a Agency; Bureau of Land Management Standards for Grades of Canned producer maintained an average fill (BLM) Cooperating Agency. Sweetpotatoes, are difficult to meet and weight of 72.8 ounces. The resulting ACTION: Notice of intent to prepare put sweetpotato processors at an drained weights failed to meet the Environmental Impact Statement. economic disadvantage in marketing minimum of 73.0 ounces in only 31 these products. percent of production. By 1995, the SUMMARY: The Bridger-Teton National The reasons given for this disparity average fill weight had been raised to Forest will prepare an Environmental are that the changes in the varietal types 77.2 ounces, a full 4.2 ounces over the Impact Statement (EIS) to document the of sweetpotatoes and the growing minimum drained weight. Despite this analysis and disclose the environmental conditions in the growing regions have increase, 55 percent of production failed impacts of the proposed authorization of changed significantly since the current to meet 73 ounces after processing. This the BLM to offer oil and gas leases in Recommended Minimum Drained overfill not only penalized the processor Management Areas 21, 45, 71, and 72. Weight Averages (RMDWA’s) were first financially but also threatened product The 1990 Bridger-Teton National proposed 21 years ago. Prior to 1985, quality and wholesomeness. Forest Land and Resource Management there were several varieties of AMS is continuing to gather drained Plan identified all of Management Areas sweetpotatoes utilized in canned weight information on the newer 21, 45, 71, and 72 as available for oil sweetpotatoes. These varieties were varieties of sweetpotatoes to ascertain and gas leasing. The Forest Plan did not Centennial, Jewel, Gold Rush, and an equitable recommended minimum make the leasing decision for site others. Since 1989, the fresh drained weight of canned specific lands. Therefore, because the sweetpotato market has predominantly sweetpotatoes. As an interim measure Forest Plan made no site-specific switched to marketing the Beauregard while further studies are made, AMS decisions, the Forest Plan did not make variety because of its improved quality proposes to lower the recommended an irreversible commitment of characteristics and yield potential. drained weight for sweetpotatoes resources. The next step in the leasing Surplus sweetpotatoes from the fresh packed in retail size cans, including No. process is to complete a site specific market have traditionally supplied 10 size cans, by two percent, and add analysis of the Management Areas. The canning operations. Since 1989, the recommended drained weight oil and gas leasing analysis is tiered to processors have noted that the criteria for the No. 300 can. the oil and gas analysis contained sweetpotatoes they have been using The No. 300 size can was not within the Bridger-Teton National have lower total solids and lower included in the last revision of the Forest Land and Resource Management densities than previously used varieties. grades standard, but is being added Plan Final Environmental Impact As part of the industry petition to because of the increased usage of this Statement and analyzes resource issues review the RMDWA’s for canned can size. The percentage water capacity, at a smaller scale and incorporates any sweetpotatoes, USDA requested that the on which the recommended minimum new resource information. The purpose sweetpotato industry submit data drained weight averages are based, is of offering Management Areas 21, 45, covering several seasons to provide calculated by dividing the RMDWA by 71, and 72 is to provide opportunities evidence of this processing condition. the total water capacity of the container. for exploration and development of Data was collected from plants located The drained weight of the No. 300 can leasable minerals. A specific objective of in Louisiana, Mississippi, and North is based on the percentage water the 1990 Bridger-Teton National Forest Carolina covering several processing capacity available in the No. 303 can, Land and Resource Management Plan is seasons. which is very similar in size. As the to ‘‘Provide leasable, locatable, and The petitioners stated that to meet the canning industry has been replacing salable mineral exploration and standard when packing certain newer production of the No. 303 container size development opportunities’’ (see Goal with the No. 300 can, it seems and objective 1.1 (d) page 113 Bridger- 1 Source—USDA, NASS, ASB appropriate to include the RMDWA for Teton National Forest Land and

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Resource Management Plan). (c) Determine if further analysis is Management Areas of the Forest. The Additionally, the Federal government’s needed resulting from new estimate for Management Area 21 policy for minerals resource circumstances or new information. indicates that ‘‘In the event of a management is expressed in the Mining (d) Determine which specific lands discovery, gas with some oil or and Minerals Policy Act of 1970. The and under what conditions the Forest condensate would most likely be Act directs the Forest Service to ‘‘foster Service will consent to authorize the encountered, and field development and encourage private enterprise in the Bureau of Land Management (BLM) to would involve up to 5 wells. Wells development of economically sound offer for lease. would be drilled on 640 acre spacing.’’ and stable industries and in the orderly Conducting an environmental (FEIS p. 244) It is estimated that there and economic development of domestic analysis on a proposed leasing action is would be two exploratory wells in this resources* * *’’ triggered when the BLM receives an area. The estimation for Management Expression of Interest in leasing a Area 45 is stated as, ‘‘the potential for DATES: Written comments concerning specific area. The Expression of Interest the scope of the analysis described in the occurrence of oil and gas in this MA means an entity has identified a block is high. Any discoveries will probably this Notice should be received by March of land that it wants to be offered for 2, 1998, to ensure timely consideration. be gas with some oil or condensate. leasing. In cases where no site-specific Spacing would be 640 acres with about Comments previously submitted in analysis has been completed, this action response to the scoping for the proposed 10 wells.’’ (FEIS p. 197) Two of the 10 requires the Forest Service to complete wells are expected to be exploratory Environmental Assessment dealing with an analysis of the area to determine leasing Management Areas 45, 21, 71, wells. The estimate for MA 71 is stated which of the nominated lands it will as: ‘‘The potential for the occurrence of and 72 will be included in this analysis. consent to be leased and to identify These previous comments do not need hydrocarbons is rated high. Cretaceous under what conditions the oil and gas through Paleozoic rocks are believed to to be resubmitted. Scoping meetings are activities will be permitted. The planned for February 10, 1998 in be present along with good structural Bridger-Teton National Forest will possibilities. If discovery is made, wells Jackson, Wyoming at 7:00 pm in the analyze the entire Management Areas Teton County Library and February 12, would be spaced on 640 acres with up where the nominated lands are located. to 10 wells drilled.’’ (FEIS p. 198). The 1998 in Pinedale, Wyoming at 7:00 pm To satisfy the requirements of the estimate for MA 72 is: ‘‘The MA is rated in the Sublette County Library. National Environmental Policy Act as high for the occurrence of (NEPA), a proposed action must be ADDRESSES: Send written comments to hydrocarbons * * * Less activity is identified by the Forest Service. A Rick Anderson, Project Coordinator, expected here than on other MAs but it proposed action is not necessarily what Bridger-Teton National Forest, P.O. Box is estimated that some activity will will occur on the ground. It is a starting 1888, Jackson, WY 83001. E-Mail occur. Gas would most likely be point for identification of issues and comments may be sent to: eis/r4lb- encountered in a discovery with some [email protected] alternatives. The Forest Service proposes to associated oil or condensate. Well FOR FURTHER INFORMATION CONTACT: authorize the BLM to offer oil and gas spacing would be 640 acres. In the event Questions concerning the proposed leases in four areas of the Bridger-Teton that a discovery is made up to 5 wells action and EIS should be directed to National Forest. may be drilled.’’ (FEIS p. 224) Rick Anderson at (307) 739–5558, or The first area, Management Area 21, The development scenarios are based through writing or electronic mail to the also known as the Hoback Basin Area on an assumption that each exploratory addresses listed above. contains approximately 72,400 acres of well will have an average total disturbance of 15 acres—11 of which SUPPLEMENTARY INFORMATION: When the National Forest System lands and is located about 25 miles southeast of will be stabilized in about three years Bridger-Teton National Forest Land and for a producer. Dry and abandoned Resource Management Plan was Jackson surrounding the community of Bondurant, WY, in Sublette County. The wells will have no facilities and all approved in 1990 it identified at a acreage will be stabilized (FEIS p. 192) programmatic level the lands available second area, Management Area 45, also known as the Moccasin Basin Area Prior to deciding to analyze the for oil and gas leasing. The next step in proposed action using an Environmental the leasing process is for the Forest contains approximately 58,000 acres of National Forest System land and is Impact Statement, scoping was Service to perform a site specific leasing conducted to identify issues to be analysis tiered to the Forest Plan. The located about 30 miles northeast of Jackson, WY, in Teton County. The analyzed through an Environmental purpose of this analysis is to implement Assessment. This previous scoping the authority granted to the Forest third area, Management Area 71, also known as the Union Pass Area contains identified many issues which will be Service by the Federal Onshore Oil and considered in the Environmental Impact Gas Leasing Reform Act of 1987 and the approximately 87,000 acres of National Forest System land and is located about Statement. The many issues received implementing regulations (36 CFR 228 relate to the general categories listed E), and to make the leasing decision for 40 miles north of Pinedale, WY, in Fremont, Sublette and Teton Counties. below: the specific lands for which interest in • Economic Impacts. leasing has been expressed. The fourth area, Management Area 72, • Social Impacts. also known as the Upper Green River Conducting this analysis and making • Effects on community and regional Area contains approximately 152,500 the necessary determinations will infrastructure. acres of National Forest System land • include the following steps or Effects on Air quality. and is located about 30 miles north of • determinations: Effects on Wilderness Areas, Pinedale, WY, in Sublette and Teton roadless areas, and other special (a) Verify that the leasing of these Counties. management areas. lands is consistent with the Forest Plan. The Final Environmental Impact • Effects on wildlife. (b) Determine that the leasing has Statement (FEIS) for the Bridger-Teton • Effects on vegetation. been adequately addressed in a National National Forest Land and Resource • Effects on water quality and Environmental Policy Act (NEPA) Management Plan estimates reasonable fisheries. document. foreseeable developments for each of the • Effects on the character of the area.

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• Effects on quality of life for environmental objections that could be Dated: January 19, 1998. residents and visitor experience issues. raised at the draft EIS stage but that are Michael Schrotz, • Effects on National Forest not raised until after completion of the Acting Deputy Forest Supervisor, Brider- recreation opportunities. final EIS may be waived or dismissed by Teton National Forest, USDA Forest Service. • Effects on Paleontologic Resources. the courts. City of Angoon v. Hodel, 803 [FR Doc. 98–748 Filed 1–14–98; 8:45 am] • The cumulative effects of the F.2d 1016, 1022 (9th Cir. 1986), and BILLING CODE 3410±11±M proposed oil and gas activities Wisconsin Heritages, Inc. v. Harris, 490 combined with the impacts of other F. Supp. 1334, 1338 (E.D. Wis. 1980). actions on a wide spectrum of ecological DEPARTMENT OF AGRICULTURE and human environment areas of Because of these court rulings, it is very concern. important that those interested in this Grain Inspection, Packers and • Broadscale effects on the region proposed action participate by the close Stockyards Administration including the neighboring National of the 45-day comment period so that Parks. substantive comments and objections Pilot Program for Barge Inspection • Adequacy of the Bridger-Teton are made available to the Forest Service Services National Forest Land and Resource at a time when it can meaningfully AGENCY: Grain Inspection, Packers and Management Plan Final Environmental consider them and respond to them in Stockyards Administration (GIPSA). Impact Statement oil and gas leasing the final EIS. ACTION: Notice. scenarios for site-specific analysis and To assist the Forest Service in decision making. identifying and considering issues and SUMMARY: GIPSA is announcing its plan The previously submitted specific concerns on the proposed action, to conduct a pilot program allowing issues relating to the above general more than one official agency to provide categories will be considered in this comments on the draft EIS should be as specific as possible. It is also helpful if barge inspection services within a single Environmental Impact Statement. Other geographic area. potential issues may be identified comments refer to specific pages or EFFECTIVE DATE: March 1, 1998. during the current scoping period. chapters of the draft EIS. Comments The Forest Service is seeking may also address the adequacy of the ADDRESSES: Neil E. Porter, Director, information and comments from draft EIS or the merits of the alternatives Compliance Division, STOP 3604, Federal, State, and local agencies, as formulated and discussed in the draft (Room 1647–S), 1400 Independence well as individuals and organizations EIS. Reviewers may wish to refer to the Ave. S.W., Washington, D.C. 20250– who may be interested in, or affected by, Council on Environmental Quality 3604. the proposed action. The Forest Service Regulations for implementing the FOR FURTHER INFORMATION CONTACT: Neil invites written comments and procedural provisions of the National E. Porter, telephone 202–720–8262. suggestions on the issues related to the Environmental Policy Act at CFR 40 SUPPLEMENTARY INFORMATION: Sections proposal and the area being analyzed. 1503.3 in addressing these points. Information received will be used in 7(f) and 7A of the United States Grain Comments received in response to preparation of the draft EIS and final Standards Act, as amended, (Act) were EIS. For the most effective use, this solicitation, including names and amended by the U.S. Grain Standards comments should be submitted to the addresses of those who comment, will Act Amendments of 1993 (Public Law Forest Service by March 2, 1998. be considered part of the public record 103–156) on November 24, 1993, to The Responsible Official is Thomas on this proposed action and will be authorize GIPSA’s Administrator to Puchlerz, Acting Forest Supervisor, available for public inspection. conduct pilot programs. These pilot Bidger-Teton National Forest, Jackson, Comments submitted anonymously will programs would allow more than one WY. The decision to be made is whether be accepted and considered; however, official agency to provide official or not to authorize the BLM to offer those who submit anonymous services within a single geographic area specific lands for lease, subject to the comments will not have standing to without undermining the declared Forest Service ensuring that correct appeal the subsequent decision under policy of the Act. The purpose of pilot stipulations are attached to the leases 36 CFR 215 or 217. Additionally, programs is to evaluate the impact of issued by the BLM (36CFR228.102(e)). pursuant to CFR 1.27(d), any person allowing more than one official agency The draft EIS is expected to be available may request the agency to withhold a to provide official services within a single geographic area. for public review in January 1999, with submission from the public record by a final EIS estimated to be completed in showing how the Freedom of GIPSA considered several possible July 1999. The comment period on the Information Act (FOIA) permits such pilot programs as announced in the draft EIS will be 45 days from the date confidentiality. Persons requesting such March 14, 1994, Federal Register (59 FR the Environmental Protection Agency confidentially should be aware that, 11759) and the March 10, 1995, Federal publishes the notice of availability in under the FOIA, confidentiality may be Register (60 FR 13113). In the the Federal Register. granted in only limited circumstances, September 27, 1995, Federal Register The Forest Service believes, at this such as to protect trade secrets. The (60 FR 49828) GIPSA announced two early stage, it is important to give pilot programs, ‘‘Timely Service’’ and Forest Service will inform the requester reviewers notice of several court rulings ‘‘Open Season,’’ starting on November 1, of the agency’s decision regarding the related to public participation in the 1995, and ending on October 31, 1996. environmental review process. First, request for confidentiality, and where These two pilot programs were reviewers of draft EIS’s must structure the request is denied, the agency will extended to October 31, 1999, as their participation in the environmental return the submission and notify the announced in the October 3, 1996, review of the proposal so that it is requester that the comments may be Federal Register (61 FR 51674). meaningful and alerts an agency to the resubmitted with or without name and The March 14, 1994, Federal Register reviewer’s position and contentions. address within 10 days. invited comments on a possible pilot Vermont Yankee Nuclear Power Corp. v. program for barges on selected rivers or NRDC, 435 U.S. 519, 553 (1978). Also, portions of rivers as defined by GIPSA.

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This was one of five potential pilots five from official agencies (two private October 31, 1999, concurrently with the being considered. GIPSA received 41 and three States) and two from trade two existing pilot programs, barges on comments. Seven specifically talked organizations. Four official agencies all rivers may be sampled by probe by about the pilot programs for barges. Of supported option 4 and one supported any official agency. During this time, those seven, five supported the program option 2. Both options 2 and 4 would GIPSA will monitor all pilot programs. for barges, and two did not. limit the pilot program to the official Anytime, GIPSA determines that a pilot Subsequently, GIPSA determined that agency serving the area within which program is having a negative impact on this proposed pilot program was too the barge was loaded. Option 2 is the official system or is not working as narrow in scope for the initial round of further limited to the Mississippi River intended, the pilot program may be pilot programs. while option 4 covers all rivers modified or discontinued. If GIPSA Subsequently, some official agencies nationwide. The official agencies cited determines that a customer violates the expressed their belief that a pilot their belief that options 2 and 4 would provisions of this pilot program, such program on the Mississippi River would provide more flexibility to the grain customer will no longer be permitted to be beneficial because there is some industry, and their concern that options participate in the program. uncertainty over the boundary lines 1 and 3 would weaken the official Official agencies participating in this between official agencies along the system. Allowing unrestricted access to pilot program must notify GIPSA’s Mississippi River. At one point GIPSA grain barges would cause their fixed Compliance Division at 202–720–8525 considered the boundary to be the cost to rise as high inspection volume or FAX 202–690–2755 any time they middle of a river. Official agencies customers are lost and they are left with sample a barge outside their assigned found this very difficult to work with, the responsibility of providing service to geographic area. infrequent users of official services. and GIPSA subsequently changed the Authority: Pub. L. 94–582, 90 Stat. 2867, boundary definition to the edge of a This, they believe, would encourage as amended (7 U.S.C. 71 et seq.). official agencies to focus on serving high river. The middle of a river was viewed Dated: January 9, 1998. as an open area to be served by either volume customers and encourage Neil E. Porter, contiguous official agency. customers to look for better grades. In 1993, because of flooding along the Official agencies would tend to become Director, Compliance Division. Mississippi River, GIPSA granted a national, contract with one large [FR Doc. 98–921 Filed 1–14–98; 8:45 am] temporary exception for certain types of customer, and lose integrity and BILLING CODE 3410±EN±P barge inspections along portions of the impartiality. Illinois, Mississippi, and Missouri One of the three State official agencies Rivers. This exception made the covered did not favor projects opening up ASSASSINATION RECORDS REVIEW river areas open to any official agency agency geographic areas while the other BOARD for probe sampling and inspections to two State official agencies supported expedite barge traffic. GIPSA noted no option 2 and 4 respectively. The State Sunshine Act Meeting official agencies noted other concerns problems resulting from this exception. DATE: January 22, 1998. In addition, some facilities located including their limitations on travel, PLACE: along the Mississippi River (Birds Point inability to add or decrease staff ARRB, 600 E Street, NW., Terminal, Bertrand, Missouri; Peavey quickly, and their stronger neutrality Washington, DC. Company, St. Louis, Missouri; ADM, and integrity base on non-profit status STATUS: Closed. Winona, Minnesota; and Consolidated compared to most private official MATTERS TO BE CONSIDERED: Grain, Caruthersville, Missouri) have agencies. received services from alternative GIPSA recognizes these concerns, but 1. Review and Accept Minutes of official agencies under the existing pilot believes that there are adequate Closed Meetings. programs. There have been no safeguards in the proposed pilot 2. Review of Assassination Records. 3. Other Business. significant problems resulting from the programs. barge inspections on the Mississippi Two national grain trade CONTACT PERSON FOR MORE INFORMATION: River under the existing pilot programs. organizations supported option 3. Eileen Sullivan, Press Officer, 600 E GIPSA announced and invited Option 3 would allow barges, Street, NW; Second Floor, Washington, comments on the following four nationwide, to be probe-sampled by any DC 20530. Telephone: (202) 724–0088; possible pilot programs in the October official agency no matter where it is Fax: (202) 724–0457. 10, 1997, Federal Register (62 FR located or where it was loaded. These T. Jeremy Gunn, 52967). two organizations cited their belief that Executive Director. 1. Barges on the Mississippi River option 3 would provide grain handlers [FR Doc. 98–1086 Filed 1–12–98; 4:21 pm] another option for obtaining timely may be sampled by probe by any official BILLING CODE 6118±01±P agency; or official inspection services when the 2. Barges on the Mississippi River official agency serving them is busy. It would, they believe, provide better may be sampled by probe at any COMMISSION ON CIVIL RIGHTS location by the official agency access to service, and foster official designated to serve the geographic area agency emphasis on quality and Agenda and Notice of Public Meeting within which the barge was loaded; or efficiency. They also believed that of the Massachusetts Advisory 3. Barges on all rivers may be sampled market driven-competition can Committee by probe by any official agency; or effectively and efficiently address many 4. Barges on all rivers may be sampled of the factors that discourage use of the Notice is hereby given, pursuant to by probe at any location by the official domestic official inspection system. the provisions of the rules and agency designated to serve the They believe the other proposed pilot regulations of the U.S. Commission on geographic area within which the barge programs would be too limited in scope. Civil Rights, that a meeting of the was loaded. After consideration of all relevant Massachusetts Advisory Committee to Comments were due by November 15, information, GIPSA is announcing that the Commission will convene at 10:30 1997. GIPSA received seven comments: effective March 1, 1998, and ending a.m and adjourn at 3:00 p.m. on

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Thursday, February 5, 1998, at the where appropriate, make corrections. final results of review. The petitioners Westborough State Hospital, Lincoln Based on the correction of certain did not submit comments. Room, P.O. Box 288, Lyman Street, ministerial errors made in the final Alleged Ministerial Errors Westborough, Massachusetts 01581. The results of review, we are amending our purpose of the meeting is to plan for the final results of review. Issue 1: Ferbasa argues that the statewide civil rights conference EFFECTIVE DATE: January 15, 1998. Department erroneously added to constructed value (CV) an amount scheduled for March 1998. FOR FURTHER INFORMATION CONTACT: Persons desiring additional Cameron Werker or Wendy J. Frankel, calculated for ICMS and IPI taxes information, or planning a presentation AD/CVD Enforcement Group II, Import related to home market sales prices to the Committee, should contact Administration, International Trade rather than materials costs. Department’s Position: We agree with Committee Chairperson Fletcher Administration, U.S. Department of Ferbasa. In our calculation of CV for the Blanchard, 413–585–3909, or Ki-Taek Commerce, 14th Street and Constitution final results of review, we inadvertently Chun, Director of the Eastern Regional Avenue, NW, Washington, DC 20230, used the tax amounts reported for home Office, 202–376–7533 (TDD 202–376– telephone: (202) 482–3874 or (202) 482– market sales. For these amended final 8116). Hearing-impaired persons who 5849, respectively. will attend the meeting and require the results we have used the amounts services of a sign language interpreter SUPPLEMENTARY INFORMATION: provided by Ferbasa in Exhibit D–16 of should contact the Regional Office at Applicable Statute and Regulations its March 27, 1996, supplemental least ten (10) working days before the submission, which reflect the amount of The Department of Commerce (the scheduled date of the meeting. ICMS and IPI taxes incurred for material The meeting will be conducted Department) has now amended the final inputs used in the production of pursuant to the provisions of the rules results of this administrative review in ferrosilicon. and regulations of the Commission. accordance with section 751 of the Issue 2: Ferbasa asserts that in Tariff Act of 1930, as amended (the calculating it’s home market indirect Dated at Washington, DC, January 8, 1998. Tariff Act). Unless otherwise indicated, selling expenses, the Department Carol-Lee Hurley, all citations to the Tariff Act are erroneously used the originally reported Chief, Regional Programs Coordination Unit. references to the provisions effective indirect selling expense figures rather [FR Doc. 98–1065 Filed 1–14–98; 8:45 am] January 1, 1995, the effective date of the than the corrected values reported in BILLING CODE 6335±01±P amendments made to the Tariff Act by Exhibit D–20 of it’s March 27, 1996, the Uruguay Round Agreements Act. In supplemental submission. addition, unless otherwise indicated, all Department’s Position: We agree with DEPARTMENT OF COMMERCE citations to the Department’s regulations Ferbasa that we inadvertently used the are to the regulations as codified at 19 incorrect indirect selling expenses International Trade Administration CFR 353 (April 1, 1997). provided in Ferbasa’s original [A±351±820] Background submission. For these amended final results, we have used the corrected Ferrosilicon From Brazil: Amended On November 22, 1996, the values reported by Ferbasa in Exhibit D– Final Results of Antidumping Duty Department published the final results 20 of its March 27, 1996, supplemental Administrative Review of the first administrative review of the submission. antidumping duty order on ferrosilicon Issue 3: The petitioners argue that for AGENCY: Import Administration, from Brazil (61 FR 59407), covering the the final results of review, the International Trade Administration, period August 15, 1993 through Department failed to express the final Department of Commerce. February 28, 1995. The respondent is dumping margin as a percentage in the ACTION: Amended Final Results of Companhia de Ferro Ligas da Bahia computer calculations, thereby Antidumping Duty Administrative (Ferbasa). The petitioners are Aimcor understating the margin by a factor of Review. and SKW Metals & Alloys Inc. 100. On November 25, and November 26, Department’s Position: We agree with SUMMARY: On November 22, 1996, the 1996, respectively, Ferbasa and the the petitioner. For these amended final Department of Commerce published the petitioners filed allegations that the results, we have formatted the final results of the first administrative Department made certain ministerial calculation spreadsheet to express the review of the antidumping duty order errors in the final results of margin as a percentage. on ferrosilicon from Brazil. The review administrative review. Subsequently, Issue 4: The petitioners state that in covered Companhia de Ferro Ligas da both parties filed suit with the Court of calculating CV, the Department used Bahia, a manufacturer/exporter of the International Trade (CIT) regarding the only the cost of production (COP) values subject merchandise to the United final results of review. On August 18, for December 1994, and therefore, States. The period of review is August 1997, the CIT consolidated the court normal value, which was based on CV, 15, 1993 through February 28, 1995. The cases and gave leave to the Department was not based on a six-month weighted respondent and the petitioners filed to consider certain alleged ministerial average CV as discussed in the ministerial error comments with regard errors, and where appropriate, make Department’s final results of review to these final results of review on corrections. Federal Register notice. November 25, and November 26, 1996, As discussed below, in accordance Department’s Position: We agree with respectively. Subsequently, both parties with 19 CFR 353.28(d), we have the petitioners that in our calculation of filed suit with the Court of International determined that the issues raised in the normal value, we inadvertently failed to Trade regarding these final results of order from the CIT are ministerial weight average the six months of costs review. On August 18, 1997, the Court errors. On December 17, 1997, the for the subject merchandise. We on International Trade consolidated the Department released draft amended corrected this error for the amended court cases and gave leave to the final results of review to Ferbasa and to final results of review. Department of Commerce to consider petitioners. On January 7, 1998, Ferbasa Issue 5: The petitioners allege that certain alleged ministerial errors, and submitted comments regarding the draft when converting normal value from

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Therefore, when available (FA) rate for ICMS taxes direct the U.S. Customs Service to converting reais to U.S. dollars, we incurred by Ferbasa on electricity costs. assess the resulting ad valorem rate should have multiplied the reais Petitioners note, however, that in the against the entered value of each entry amount by 1.182033. We have corrected calculations, the Department applied as of the subject merchandise by the this calculation for these amended final FA for ICMS taxes on electricity an importer during the period of review. results of review. actual figure that was less than 18 This notice also serves as the final Issue 6: The petitioners allege that the percent of Ferbasa’s electricity cost. reminder to importers of their Department made the same conversion Department’s Position: We agree with responsibility under 19 CFR 353.26 to error, noted in Issue 5 above, with the petitioners and have corrected this file a certificate regarding the regard to U.S. packing expenses. error for these amended final results of reimbursement of antidumping duties Department’s Position: We agree with review. prior to liquidation of the relevant the petitioners and have corrected this entries during this review period. Amended Final Results of Review error for these amended final results of Failure to comply with this requirement review. As a result of our correction of the could result in the Secretary’s Issue 7: The petitioners contend that ministerial errors, we have determined presumption that reimbursement of in calculating adjustments to CV the that the amended weighted-average antidumping duties occurred and the Department subtracted home market margin for Ferbasa for the period August subsequent assessment of double packing expenses from a CV that did not 15, 1993 through February 28, 1995 is antidumping duties. include those expenses. 30.69 percent. This notice also serves as a reminder Department’s Position: We agree with The Department shall determine, and to parties subject to administrative the petitioners, and have eliminated this the U.S. Customs Service shall assess, protective order (APO) of their adjustment from the weighted-average antidumping duties on all appropriate responsibility concerning the margin calculation for these amended entries. The Department will issue disposition of proprietary information final results of review. appraisement instructions concerning disclosed under APO in accordance Issue 8: The petitioners note that the respondent directly to the U.S. with 19 CFR 353.34(d). Timely written although the Department’s final results Customs Service. notification of return/destruction of of review analysis memorandum states Furthermore, the following cash APO materials or conversion to judicial that the Department calculated the ratio deposit requirements will be effective protective order is hereby requested. of net profit to cost of goods sold based for all shipments of the subject Failure to comply with the regulations on information from Ferbasa’s financial merchandise entered, or withdrawn and the terms of the APO is a statements, it appears that the from warehouse, for consumption on or sanctionable violation. Department actually calculated a ratio of after the publication date of these final These amended final results of net profit to net sales value, thereby amended results of administrative administrative review and notice are in understating the profit ratio. review, as provided for by section accordance with section 751(a)(1) and Ferbasa contends that in the draft 751(a)(1) of the Act: (1) The amended (h) of the Tariff Act (19 U.S.C. 1675(a)(1) amended final results of review, the cash deposit rate for the reviewed and (h) and 19 CFR 353.28. Department calculated the profit ratio company named above will be the rate Dated: January 12, 1998. using profit and cost of manufacturing as stated above; (2) for previously rather than profit and cost of goods sold. investigated or reviewed companies not Robert S. LaRussa, Ferbasa further contends that the listed above, the cash deposit rate will Assistant Secretary for Import Department should apply the profit rate continue to be the company-specific rate Administration. to a pre-profit CV that does not include published for the most recent period; (3) [FR Doc. 98–1158 Filed 1–14–98; 8:45 am] amounts for ICMS and IPI taxes since if the exporter is not a firm covered in BILLING CODE 3510±DS±P the profit ratio is calculated based on a this review, or the original less than fair cost of goods sold amount that is net of value (LTFV) investigation, but the DEPARTMENT OF COMMERCE the ICMS and IPI taxes. manufacturer is, the cash deposit rate Department’s Position: We agree with will be the rate established for the most National Oceanic and Atmospheric the petitioners that in our final results recent period for the manufacturer of Administration of review we inadvertently calculated a the merchandise; and (4) if neither the ratio of profit to net sales value. We also exporter nor the manufacturer is a firm [I.D. 010998B] agree with Ferbasa that for the draft covered in this review, the cash deposit Western Pacific Fishery Management amended final results of review, we rate for all other manufacturers or Council; Public Meeting inadvertently used the cost of exporters will be 35.95 percent, the All manufacturing rather than the cost of Others rate established in the amended AGENCY: National Marine Fisheries goods sold in our profit rate calculation. final LTFV investigation. These Service (NMFS), National Oceanic and For these amended final results, we amended deposit requirements, when Atmospheric Administration (NOAA), have corrected the profit calculation to imposed, shall remain in effect until Commerce. reflect a ratio of net profit to cost of publication of the final results of the ACTION: Notice of public meeting. goods sold. However, there is no next administrative review. information on the record to SUMMARY: The Western Pacific Fishery substantiate Ferbasa’s claim that the Assessment Rates Council will hold public meetings cost of goods sold figure is calculated For assessment purposes, we (including hearings) in Hawaii on the net of ICMS and IPI taxes. Therefore, we calculated an importer-specific islands of Maui, Oahu, and Kauai to

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2364 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices solicit comment on a limited access (voice) or 808–522–8226 (fax), at least 5 California Department of Forestry and program proposed for the Mau Zone days prior to meeting date. Fire Protection (CDFFP), Santa Rosa, CA bottomfish fishery in the Northwestern Dated: January 9, 1998. (1103); Louisiana-Pacific Corporation Hawaiian Islands. Richard W. Surdi, (LPC), Trinidad, CA (1104); has issued a modification to a permit to the U.S. DATES: The schedule for the public Acting Director, Office of Sustainable meetings is as follows: Tuesday, 27 Fisheries, National Marine Fisheries Service. Army Corps of Engineers (Corps), at January 1998, Lihikai Elementary [FR Doc. 98–1051 Filed 1–14–98; 8:45 am] Walla Walla, WA (895). Notice is also given that NMFS issued School, 6:00 pm - 9:00 pm, Kahalui, BILLING CODE 3510±22±F Maui; Wednesday, 28 January 1998, amendments to permits to: the Idaho Council Office, 6:30 pm - 9:00 pm, Department of Fish and Game (IDFG), at Honolulu, Hawaii; and Thursday, 29 DEPARTMENT OF COMMERCE Boise, ID (795); the Northwest Fisheries January 1998, Wilcox Elementary, 6:00 Science Center, NMFS (NWFSC), at pm - 9:00 pm, Lihue, Kauai. National Oceanic and Atmospheric Seattle, WA (1005); the Fish Passage ADDRESSES: The meetings will be held Administration Center (FPC), at Portland, OR (822); and the Columbia River Inter-Tribal Fish at: Maui, Lihikai Elementary School, [I.D. 010998A] Kahalui, Maui, 335 Papa Street, 96732; Commission (CRITFC), at Portland, OR Oahu, Council Office, 1164 Bishop Endangered and Threatened Species; (825). Street, Suite 1400, Honolulu, Hawaii, Permits DATES: Written comments or requests for 96813; Kauai, Wilcox Elementary a public hearing on any of these AGENCY: School, 4319 Hardy Street, Lihue, National Marine Fisheries applications must be received on or Kauai, 96766. Telephone inquires can Service (NMFS), National Oceanic and before February 17, 1998. Atmospheric Administration (NOAA), be made to (808) 522–8220. ADDRESSES: The applications and Council address: Western Pacific Commerce. related documents are available for Fishery Management Council, 1164 ACTION: Receipt of applications for review in the following offices, by Bishop St., Suite 1400, Honolulu, HI, scientific research permits 1059, 1072, appointment: 96813. 1074, 1075, 1088, 1092, 1114, 1115, and For applications/permits 1059, 1066, 1116. Issuance of scientific research FOR FURTHER INFORMATION CONTACT: 1072, 1074, 1075, 1079, 1080, 1082, permits 1066, 1079, 1080, 1082, 1103, Kitty M. Simonds, Executive Director; 1088, 1092, 1103, 1104: Protected 1104, modification 3 to permit 895, and telephone 808–522–8220. Species Division, NMFS, 777 Sonoma amendments to permits 795, 1005, 822, Avenue, Room 325, Santa Rosa, CA SUPPLEMENTARY INFORMATION: The and 825. Western Pacific Fishery Management 95404–6528 (707 575–6066); For applications/permits 895, 795, Council will be holding public SUMMARY: Notice is hereby given that 1005, 822, 825, 1114, 1115, 1116: meetings/hearings on Maui, Oahu, and the following applicants have applied in Kauai to solicit comments on the due form for permits that would Protected Resources Division, F/NWO3, proposed limited access system for the authorize takes of an endangered or NMFS, 525 NE Oregon Street, Suite 500, Mau Zone bottomfish fishery in the threatened species for scientific research Portland, OR 97232–4169 (503–230– Northwestern Hawaiian Islands. In 1989 purposes: Carl Page, in Cotati, CA 5400); All documents may also be reviewed the Mau Zone was established through (1059); U.S.D.I. Bureau of Reclamation by appointment in the Office of Amendment 2 of the Council’s (BOR), in Shasta Lake, CA (1072); Protected Resources, F/PR3, NMFS, Bottomfish and Seamount Groundfish Pacific Lumber Company (PLC), in 1315 East-West Highway, Silver Spring, Fishery Management Plan. The Mau Scotia, CA (1074); Pacific Coast MD 20910–3226 (301–713–1401). Zone was created as an open access Federation of Fishermen’s Associations fishery but required a federal permit for (PCFFA), in Miranda, CA (1075); FOR FURTHER INFORMATION CONTACT: For participation. Currently, a 2 year U.S.D.I. Bureau of Land Management permits 1059, 1066, 1072, 1074, 1075, moratorium is in place on the issuance (BLM), in Arcata, CA (1088); Sierra 1079, 1080, 1082, 1088, 1092, 1103, of new permits for the Mau Zone Pacific Industries (SPI), in Redding, CA 1104: Tom Hablett, Protected Resources fishery. The moratorium is scheduled to (1092); the State of Washington, Division, NMFS Santa Rosa office, (707– expire 27 March 1999, by which time Department of Fish and Wildlife 575–6066). the Council intend to establish a new (WDFW) at Olympia, WA (1114); Public For permits 1114, 1115, 1116: Tom management program for the fishery. Utility District No. 1 of Chelan County Lichatowich, Protected Resources Although other issues not on the (PUDCC), at Wenatchee, WA (1115); and Division, NMFS Portland office, (503– agenda may come before this Council Public Utility District No. 1 of Douglas 230–5438). for discussion, in accordance with the County (PUDDC) at East Wenatchee, For permits 895, 795, 1005, 822, 825: Magnuson-Stevens Fishery WA (1116). Robert Koch, Protected Resources Conservation and Management Act, Notice is also given that NMFS has Division, NMFS Portland office, (503– those issues may not be the subject of issued scientific research permits that 230–5424). formal Council action during these authorize takes of Endangered Species SUPPLEMENTARY INFORMATION: Permits meetings. Council action will be Act-listed anadromous fish species for are requested under the authority of restricted to those issues specifically the purpose of scientific research and/ section 10 of the Endangered Species identified in the agenda listed in this or enhancement, subject to certain Act of 1973 (ESA) (16 U.S.C. 1531– notice. conditions set forth therein, to: D.W. 1543) and the NMFS regulations Alley and Associates (DWAA), governing ESA-listed fish and wildlife Special Accommodations Brookedale, CA (1066); Georgia-Pacific permits (50 CFR parts 217–227). This meeting is physically accessible West, Inc. (GPWI), Fort Bragg, CA Those individuals requesting a to people with disabilities. Requests for (1079); Dr. Jerry J. Smith, San Jose State hearing on these requests for permits sign language interpretation or other University (SJSU), San Jose, CA (1080); should set out the specific reasons why auxiliary aids should be directed to Salmon Trollers Marketing Association a hearing would be appropriate (see Kitty M. Simonds, 808–522–8220 (STMA), Fort Bragg, CA (1082); the ADDRESSES). The holding of such a

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2365 hearing is at the discretion of the threatened, SONNC coho salmon WDFW (1114) requests a five-year Assistant Administrator for Fisheries, (Oncorhynchus kisutch) associated with permit for a take of juvenile endangered, NOAA. All statements and opinions fish population and habitat studies on naturally-produced and artificially- contained in the above application PLC ownership properties in basins of propagated, Upper Columbia River summaries are those of the applicant the Eel, Van Duzen, and Mattole Rivers, steelhead (Oncorhynchus mykiss) and do not necessarily reflect the views Freshwater Creek, and coastal stream associated with a smolt monitoring of NMFS. drainages to Humboldt Bay within the program at Rock Island Dam on the Issuance of these permits, ESU. The studies consist of coho salmon Columbia River. The purpose of the modifications, and amendments, as habitat and biological inventories, and program is to collect information on required by the ESA, was based on a project monitoring and evaluation juvenile fish migration timing, survival, finding that such permits, studies for which ESA-listed fish are travel timing, and general fish health. modifications, and amendments: (1) proposed to be taken. ESA-listed fish The data will be used to make in-season Were applied for in good faith; (2) will be captured, anesthetized, handled adjustments to water releases from would not operate to the disadvantage (identified and measured), allowed to upstream reservoirs that optimize of the listed species which are the recover from the anesthetic, and downstream migration conditions. ESA- subject of the permits; and (3) are released. ESA-listed salmon indirect listed juvenile fish are proposed to be consistent with the purposes and mortalities associated with the research collected in a permanent inclined policies set forth in section 2 of the are also requested. screen trap, anesthetized, examined ESA. These permits, modifications, and PCFFA (1075) requests a five-year and/or tagged with passive integrated amendments were also issued in permit for takes of adult and juvenile, transponders (PIT), allowed to recover accordance with and are subject to parts threatened, SONNC coho salmon from the anesthetic, and released. ESA- 217-222 of Title 50 CFR, the NMFS (Oncorhynchus kisutch) associated with listed juvenile fish indirect mortalities regulations governing listed species fish population and habitat studies in associated with the research are also permits. the Eel River Basin within the ESU. The requested. PUDCC (1115) requests a five-year Applications Received studies consist of coho salmon permit for takes of endangered, Carl Page (1059) requests a five-year distribution, abundance and genetic surveys for which ESA-listed fish are naturally-produced and artificially- permit for takes of: adult and juvenile, propagated, Upper Columbia River threatened, southern Oregon/northern proposed to be taken. ESA-listed fish will be captured, anesthetized, handled steelhead (Oncorhynchus mykiss) California coast (SONNC) coho salmon associated with two research studies. (Oncorhynchus kisutch); adult and (identified and measured), allowed to recover from the anesthetic, and The purpose of study one is to evaluate juvenile, threatened, central California the juvenile fish bypass system installed released. ESA-listed salmon indirect coast coho salmon (Oncorhynchus at Rock Creek Dam. Data collected will mortalities associated with the research kisutch); and adult and juvenile, be used to test and improve the surface are also requested. endangered, southern California coast collector system that guides juvenile steelhead (Oncorhynchus mykiss) BLM (1088) requests a five-year salmonids around the dam. ESA-listed associated with fish population and permit for takes of adult and juvenile, juvenile fish are proposed to be habitat studies in coastal drainages threatened, SONNC coho salmon collected by surface collectors at the throughout California. The studies (Oncorhynchus kisutch) associated with dam, anesthetized, examined and/or consist of coho salmon habitat and fish population and habitat studies in PIT-tagged, allowed to recover from the biological inventories, and project the Eel and Mattole River Basins, and anesthetic, and released. The purpose of monitoring and evaluation studies for Humboldt County coastal stream study two is to monitor juvenile fish gas which ESA-listed fish are proposed to drainages within the ESU. The studies bubble trauma at Rocky Reach and Rock be taken. ESA-listed fish will be consist of coho salmon distribution, Island Dams on the Columbia River. The captured, anesthetized, handled abundance and spawner surveys for information obtained will be used to (identified and measured), allowed to which ESA-listed fish are proposed to determine how fish are affected by gas recover from the anesthetic, and be taken. ESA-listed fish will be bubbles and what can be done to released. ESA-listed salmon indirect captured, anesthetized, handled minimize gas bubble trauma. ESA-listed mortalities associated with the research (identified and measured), allowed to juvenile fish are proposed to be are also requested. recover from the anesthetic, and collected by surface collectors at the BOR (1072) requests a five-year released. ESA-listed salmon indirect dams, anesthetized, examined, allowed permit for takes of adult and juvenile, mortalities associated with the research to recover from anesthetic, and released. threatened, SONNC coho salmon are also requested. ESA-listed juvenile fish indirect (Oncorhynchus kisutch) associated with SPI (1092) requests a five-year permit mortalities associated with both studies monitoring projects in the Trinity, for takes of adult and juvenile, are also requested. Klamath and New River Basins within threatened, SONNC coho salmon PUDDC (1116) requests a five-year the Evolutionarily Significant Unit (Oncorhynchus kisutch) associated with permit for takes of endangered, (ESU). The studies consist of coho fish population and habitat studies on naturally-produced and artificially- salmon distribution and abundance SPI ownership properties within the propagated, Upper Columbia River surveys for which ESA-listed fish are ESU. The studies consist of coho salmon steelhead (Oncorhynchus mykiss) proposed to be taken. ESA-listed fish habitat and biological inventories for associated with a study designed to will be captured, anesthetized, handled which ESA-listed fish are proposed to determine the survival and migration (identified and measured), allowed to be taken. ESA-listed fish will be differences of juvenile fish as they pass recover from the anesthetic, and captured, anesthetized, handled downstream through Lake Pateros and released. ESA-listed salmon indirect (identified and measured), allowed to Wells Dam. ESA-listed juvenile fish are mortalities associated with the research recover from the anesthetic, and proposed to be collected by rotary screw are also requested. released. ESA-listed salmon indirect traps and/or beach seines. All ESA- PLC (1074) requests a five-year permit mortalities associated with the research listed fish captured will be examined for takes of adult and juvenile, are also requested. under water and released into the

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2366 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices stream where captured without 895. Modification 3 to permit 895 was DEPARTMENT OF COMMERCE additional handling. The information issued on December 24, 1997. Permit will be used to determine the 895 authorizes the Corps annual takes of National Oceanic and Atmospheric appropriateness of utilizing selected adult and juvenile, endangered, Snake Administration surrogate stocks in future survival River sockeye salmon (Oncorhynchus [I.D. 010898B] studies in the mid-Columbia River. nerka); adult and juvenile, threatened, ESA-listed juvenile fish indirect naturally-produced and artificially- Marine Mammals; Scientific Research mortalities associated with the research propagated, Snake River spring/summer Permits (PHF# 782±1438 and PHF# are also requested. chinook salmon (Oncorhynchus 774±1437) Permits Issued tshawytscha); and adult and juvenile, threatened, Snake River fall chinook AGENCY: National Marine Fisheries Notice was published on September salmon (Oncorhynchus tshawytscha) Service (NMFS), National Oceanic and 18, 1997 (62 FR 48995) that an associated with the operation of the Atmospheric Administration (NOAA), application had been filed by DWAA Juvenile Fish Transportation Program at Commerce. (1066) to take threatened central four hydroelectric projects on the Snake ACTION: Receipt of applications. California coast coho salmon as and Columbia Rivers (Lower Granite, SUMMARY: Notice is hereby given that authorized by the Endangered Species Little Goose, Lower Monumental, and Act of 1973 (ESA) (16 U.S.C. 1531-1543) the National Marine Mammal McNary Dams). For modification 3, the Laboratory, National Marine Fisheries and the NMFS regulations governing Corps is authorized an increase in the listed fish and wildlife permits (50 CFR Service, NOAA, 7600 Sand Point Way, annual incidental take of adult, NE, BIN C15700, Bldg. 1, Seattle, parts 217-222). Permit 1066 was issued threatened, Snake River spring/summer to DWAA on December 23, 1997. Permit Washington 98115–0700 has applied in chinook salmon associated with due form for a permit to take multiple 1066 expires on June 30, 2002. fallbacks through the juvenile fish Notice was published on September cetacean and pinniped species for bypass systems at the projects. A purposes of scientific research. In 11, 1997 (62 FR 47790) that an corresponding increase in ESA-listed application had been filed by GPWI addition the Southwest Fisheries adult salmon incidental mortalities are Science Center, National Marine (1079) to take threatened central also authorized. Modification 3 is valid California coast coho salmon as Fisheries Service, NOAA, P.O. Box 271 for the duration of the permit. Permit La Jolla, CA 92038–0271 has applied in authorized by the ESA. Permit 1079 was 895 expires on December 31, 1998. issued to GPWI on December 23, 1997. due form for a permit to take multiple Permit 1079 expires on June 30, 2002. Amended Permits pinniped species for the purposes of Notice was published on September scientific research. 11, 1997 (62 FR 47790) that an Amendments to scientific research DATES: Written or telefaxed comments application had been filed by SJSU and/or enhancement permits 795, 1005, must be received on or before February (1080) to take threatened central 822, and 825 were issued on December 17, 1998. California coast coho salmon as 29, 1997. The amendments authorize an ADDRESSES: The applications and authorized by the ESA. Permit 1080 was extension of each of the permits through related documents are available for issued to SJSU on December 23, 1997. May 31, 1998. The permits were all due review upon written request or by Permit 1080 expires on June 30, 2002. to expire on December 31, 1997. appointment in the following office(s): Notice was published on September Extensions of the permits are necessary Permits and Documentation Division, 18, 1997 (62 FR 48995) that an to allow the permit holders to continue Office of Protected Resources, NMFS, application had been filed by STMA activities while new permits are applied 1315 East-West Highway, Room 13130, (1082) to take threatened central for and/or to allow them the Silver Spring, MD 20910 (301/713– California coast coho salmon as opportunity to develop take estimates of 2289); and authorized by the ESA. Permit 1082 was ESA-listed steelhead (Oncorhynchus Regional Administrator, Northwest issued to STMA on December 23, 1997. mykiss) for the applications. Permits Region, National Marine Fisheries Permit 1082 expires on June 30, 2002. 795 and 1005 authorize IDFG and Service, NOAA, 7600 Sand Point Way, Notice was published on August 22, NWFSC takes of adult and juvenile, NE, BIN C15700, Bldg. 1, Seattle, WA 1997 (62 FR 44646) that an application endangered, Snake River sockeye 98115–0070 (206/526–6150). had been filed by CDFFP (1103) to take salmon associated with a captive Regional Administrator, Southwest threatened central California coast coho broodstock program. Permits 822 and Region, National Marine Fisheries salmon as authorized by the ESA. 825 authorize FPC and CRITFC takes of Service, NOAA, 501 West Ocean Permit 1103 was issued to CDFFP on juvenile, endangered, Snake River Boulevard, Suite 4200, Long Beach, CA December 23, 1997. Permit 1103 expires sockeye salmon; adult and juvenile, 90802–4213 (562/980–4001). on June 30, 2002. threatened, naturally-produced and Written comments or requests for a Notice was published on August 22, artificially-propagated, Snake River public hearing on these applications 1997 (62 FR 44646) that an application spring/summer chinook salmon; and should be mailed to the Chief, Permits had been filed by LPC (1104) to take adult and juvenile, threatened, Snake and Documentation Division, F/PR1, threatened central California coast coho River fall chinook salmon associated Office of Protected Resources, NMFS, salmon as authorized by the ESA. with scientific research and monitoring 1315 East-West Highway, Room 13130, Permit 1104 was issued to LPC on activities. Silver Spring, MD 20910. Those individuals requesting a hearing should December 23, 1997. Permit 1103 expires Dated: January 9, 1998. on June 30, 2002. set forth the specific reasons why a Barbara A. Schroeder, hearing on these particular requests Modifications Issued Acting Chief, Endangered Species Division, would be appropriate. Notice was published on October 14, Office of Protected Resources, National Comments may also be submitted by 1997 (62 FR 53319) that an application Marine Fisheries Service. facsimile at (301) 713–0376, provided had been filed by the Corps for [FR Doc. 98–1050 Filed 1–14–98; 8:45 am] the facsimile is confirmed by hard copy modification 3 to enhancement permit BILLING CODE 3510±22±F submitted by mail and postmarked no

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2367 later than the closing date of the ACTION: Notice of first prehearing and (d). Should the allegations be comment period. Please note that conference. proven, Complaint Counsel for the comments will not be accepted by email Office of Compliance of the U.S. or other electronic media. DATES: This notice announces a Consumer Product Safety Commission Concurrent with the publication of prehearing conference to be held in the seeks a finding that the product presents this notice in the Federal Register, matter of The Black & Decker a substantial product hazard and that NMFS is forwarding copies of this Corporation, et al. on January 29, 1998, public notification be made pursuant to application to the Marine Mammal at 10:00 a.m. section 15(c) of the CPSA and that other Commission and its Committee of ADDRESSES: The prehearing conference appropriate relief be directed, as set Scientific Advisors. will be in hearing room 420 of the East- forth in the Complaint. SUPPLEMENTARY INFORMATION: The West Towers Building, 4330 East-West Dated: January 12, 1998. Highway, Bethesda, Maryland 20814. subject permits are requested under the Sadye E. Dunn, authority of the Marine Mammal FOR FURTHER INFORMATION CONTACT: For Consumer Product Safety Commission. Protection Act of 1972, as amended (16 additional information contact Sadye E. U.S.C. 1361 et seq.), the Regulations Dunn, Secretary, U.S. Consumer [FR Doc. 98–1076 Filed 1–14–98; 8:45 am] Governing the Taking and Importing of Product Safety Commission, BILLING CODE 6355±01±M Marine Mammals (50 CFR part 216), the Washington, D.C.; telephone (301) 504– Endangered Species Act of 1973, as 0500; telefax (301) 504–0127. amended (16 U.S.C. 1531 et seq.), the SUPPLEMENTARY INFORMATION: This DEPARTMENT OF DEFENSE regulations governing the taking, public notice is issued pursuant to 16 [OMB Control Number 0704±0225] importing, and exporting of endangered CFR 1025.21(b) of the U.S. Consumer fish and wildlife (50 CFR 222.23), and Product Safety Commission’s Rules of Notice and Request for Comments the Fur Seal Act of 1966, as amended Practice for Adjudicative Proceedings to Regarding an Information Collection (16 U.S.C. 1151 et seq.). inform the public that a prehearing Requirement The National Marine Mammal conference will be held in an Laboratory seeks to conduct aerial administrative proceeding under AGENCY: Department of Defense (DoD). surveys of large and small cetaceans in Section 15 of the Consumer Product ACTION: Notice and request for the waters off the coasts of Alaska, Safety Act (CPSA) captioned CPSC comments regarding a proposed Washington, Oregon, and California. Docket No. 98–1, In the Matter of The extension of an approved information During the course of these surveys, Black & Decker Corporation; and collection requirement. some pinniped species may also be Charles E. Fenton, Barbara B. Lucas, and SUMMARY: inadvertently harassed. Thomas M. Schoewe, Directors, Black & In compliance with Section The Southwest Fisheries Science Decker (U.S.) Inc.; and Black & Decker 3506(c)(2)(A) of the Paperwork Center seeks to conduct photographic (U.S.) Inc. The Presiding Officer in the Reduction Act of 1995 (Pub. L. 104–13), aerial surveys of pinniped rookeries proceeding is United States DoD announces the proposed extension and/or haulouts in California, Oregon, Administrative Law Judge William B. of a public information collection Washington, and Alaska. These surveys Moran. The Presiding Officer has requirement and seeks public comment will assess pinniped populations and determined that, for good and sufficient on the provisions thereof. Comments are determine distribution, length cause, the time period for holding this invited on: (a) Whether the proposed frequencies, breeding densities, nearest first prehearing conference had to be collection of information is necessary neighbor distances, and population extended to the date announced above, for the proper performance of the indices. which date is beyond the fifty (50) day functions of the agency, including In compliance with the National period referenced in 16 CFR 1025.21(a). whether the information will have Environmental Policy Act of 1969 (42 The public is referred to the Code of practical utility; (b) the accuracy of the U.S.C. 4321 et seq.), an initial Regulations citation listed above for estimate of the burden of the proposed determination has been made that the identification of the issues to be raised information collection; (c) ways to activities proposed are categorically at the conference and is advised that the enhance the quality, utility, and clarity excluded from the requirement to date, time and place of the hearing also of the information to be collected; and prepare an environmental assessment or will be established at the conference. (d) ways to minimize the burden of the environmental impact statement. Substantively, the issue being information collection on respondents, Dated: January 8, 1988. litigated in this proceeding is described including the use of automated collection techniques or other forms of Ann D. Terbush, by the Presiding Officer as whether the Black and Decker Spacemaker Toaster, information technology. This Chief, Permits and Documentation Division, information collection requirement is Office of Protected Resources, National Model T1000, Type 1, (‘‘Spacemaker Marine Fisheries Service. Toaster’’) presents a fire hazard as a currently approved by the Office of Management and Budget (OMB) for use [FR Doc. 98–1049 Filed 1–14–98; 8:45 am] consequence of an allegedly defective through June 30, 1998. DoD proposes BILLING CODE 3510±22±F electronic timer; whether the allegedly defective timer constitutes a design that OMB extend its approval for use defect under 15 U.S.C. 2064; whether through June 30, 2001. CONSUMER PRODUCT SAFETY the allegedly defective timer creates a DATES: Consideration will be given to all COMMISSION substantial risk of injury to consumers comments received by March 16, 1998. within the meaning of Section 15(a)(2), ADDRESSES: Written comments and [CPSC Docket No. 98±1] (c) and (d) of the CPSA, 15 U.S.C. recommendations on the proposed Black & Decker Corporation, et al.; 2064(a)(2), (c) and (d); and whether, information collection requirement Prehearing Conference consequently, the Spacemaker Toaster should be sent to: Defense Acquisition presents a substantial product hazard, as Regulations Council, Attn: Ms. Melissa AGENCY: Consumer Product Safety described in sections 15(a)(2), (c) and D. Rider, PDUSD (A&T) DP (DAR), IMD Commission. (d) of the CPSA, 15 U.S.C. 2064(a)(2), (c) 3D139, 3062 Defense Pentagon,

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Washington, DC 20301–3062. Telefax latter case, the Government will obtain collection of information is necessary (703) 602–0350. a CAGE code for the offeror, if it is for the proper performance of the E-mail comments submitted over the selected for award, using the procedures functions of the agency, including Internet should be addressed to: at DFARS 204.7202–1. The CAGE codes whether the information will have [email protected]. provided by offerors are used by the practical utility; (b) the accuracy of the Please cite OMB Control Number Government in automated acquisition estimate of the burden of the proposed 0704–0225 in all correspondence related systems to identify discrete entities that information collection; (c) ways to to this issue. E-mail comments should have been awarded contracts. The codes enhance the quality, utility, and clarity cite OMB Control Number 0704–0225 in support efficient data exchange among of the information to be collected; and the subject line. automated systems for contract award, (d) ways to minimize the burden of the FOR FURTHER INFORMATION CONTACT: Ms. contract administration, and contract information collection on respondents, Melissa D. Rider, at (703) 602–0131. A payment. including the use of automated copy of this information collection Affected Public: Businesses or other collection techniques or other forms of requirement is available electronically for-profit and not-for-profit institutions. information technology. This via the INTERNET at: http:// Annual Burden Hours: 66,898. information collection requirement is www.dtic.mil/dfars/ Number of Responses: 108,261. currently approved by the Office of Paper copies may be obtained from Responses per Respondent: 1. Management and Budget (OMB) for use Ms. Melissa D. Rider, PDUSD (A&T) DP Average Burden per Response: .62 through September 30, 1998. DoD (DAR), IMD 3D139, 3062 Defense hours. proposes that OMB extend its approval Pentagon, Washington, DC 20301–3062. Frequency: On occasion. for use through September 30, 2001. Title, Associated Form, and OMB SUPPLEMENTARY INFORMATION: DATES: Consideration will be given to all Number: Defense FAR Supplement Part comments received by March 16, 1998. 204, Administrative Matters, and related Summary of Information Collection ADDRESSES: Written comments and clauses at 252.204; OMB Control This information collection recommendations on the proposed Number 0704–0225. requirement pertains to information that information collection requirement Needs and Uses: This information contractors must submit to DoD to should be sent to: Defense Acquisition collection requirement pertains to two request release of unclassified data that Regulations Council, Attn: Ms. Amy types of information that a contractor is not in the public domain, or to Williams, (PDUSD (A&T) DP (DAR), must submit to DoD. provide or request assignment of a IMD 3D139, 3062 Defense Pentagon, a. The Defense Federal Acquisition contractor and Government entity Washington, DC 20301–3062. Telefax Regulation Supplement (DFARS), at (CAGE) code. This information is used (703) 602–0350. 204.404–70(a), prescribes the use of the by DoD to (1) control unclassified data E-mail comments submitted over the clause at DFARS 252.204–7000, that is sensitive or otherwise Internet should be addressed to: Disclosure of Information, when the inappropriate for release for the [email protected]. contractor will have access to or contractor’s stated purpose, and (2) Please cite OMB Control Number generate unclassified information that support efficient data exchange among 0704–0216 in all correspondence related may be sensitive and inappropriate for automated systems for contract award, to this issue. E-mail comments should release to the public. this clause contract administration, and contract cite OMB Control Number 0704–0216 in requires contractors to obtain payment by assigning a unique code to the subject line. contracting officer approval to release each contractor doing business with FOR FURTHER INFORMATION CONTACT: Ms. unclassified information outside of the DoD. Amy Williams, at (703) 602–0131. A contractor’s organization unless the Michele P. Peterson, copy of this information collection information is already in the public Executive Editor, Defense Acquisition requirement is available electronically domain. In requesting such approval, Regulations Council. via the Internet at: http://www.dtic.mil/ the contractor must identify the specific [FR Doc. 98–971 Filed 1–14–98; 8:45 am] dfars/ information that will be released, the BILLING CODE 5000±04±M Paper copies may be obtained from medium that will be used, and the Ms. Amy Williams, PDUSD (A&T) DP purpose for the release. The (DAR), IMD 3D139, 3062 Defense Government reviews the information DEPARTMENT OF DEFENSE Pentagon, Washington, DC 20301–3062. provided by the contractor to determine Title, Associated Form, and OMB if it is sensitive or otherwise [OMB Control Number 0704±0216] Number: Defense Federal Acquisition inappropriate for release for the stated Information Collection Requirements; Regulation Supplement (DFARS) Part purpose. Such requests are normally Bonds and Insurance 228, Bonds and Insurance, and Related received only on research and Clauses at 252.228, OMB Control development contracts or large dollar AGENCY: Department of Defense (DoD). Number 0704–0216. systems or operations contracts. ACTION: Notice and request for Needs and Uses: This information b. DFARS 204.602–70 prescribes the comments regarding a proposed collection requirement pertains to use of the solicitation provision at extension of an approved information information collections used by DoD 252.204–7001, Commercial and collection requirement. claims investigators to determine the Government Entity (CAGE) Code amount and extent of claims placed Reporting, when CAGE codes for SUMMARY: In compliance with Sections against the Government and by DoD prospective offerors are not available to 3506(c)(2)(A) of the Paperwork contracting officers to assess whether a contracting officers. The provision Reduction Act of 1995 (Pub. L. 104–13), contractor, other than a Spanish requires an offeror to submit as part of DoD announces the proposed extension contractor or subcontractor, performing its offer either a previously assigned of a public information collection a service or construction contract in GAGE code, or to ask the contracting requirement, and seeks public comment Spain, has insurance adequate to cover officer to request a code from the on the provisions thereof. Comments are the risk assumed by the contractor or Defense Logistics Service Center. In the invited on: (a) whether the proposed subcontractor.

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Affected Public: Businesses or other collection of information is necessary Annual Burden Hours: 400. for-profit and not-for-profit institutions. for the proper performance of the Number of Responses: 800. Annual Burden Hours: 859 hours. functions of the agency, including Number of Respondents: 49. whether the information will have Responses per Respondent: 1. Responses Per Respondent: 1. practical utility; (b) the accuracy of the Average Burden per Response: 30 Number of Responses: 49. agency’s estimate of the burden of the minutes. Average Burden Per Response: 17.53 proposed information collection; (c) Frequency: On occasion. hours. ways to enhance the quality, utility, and Frequency: On occasion. clarity of the information to be SUPPLEMENTARY INFORMATION: collected; and (d) ways to minimize the SUPPLEMENTARY INFORMATION: Summary of Information Collection burden of the information collection on Summary of Information Collection respondents, including the use of The clause at DFARS 252.237–7011, • DFARS 252.228–7000, automated collection techniques or Preparation History, requires that the Reimbursement for War-Hazard Losses, other forms of information technology. contractor submit information requires the contractor to provide notice This information collection requirement describing the results of the embalming and supporting documentation to the is currently approved by the Office of process on each body prepared for Government regarding claims or Management and Budget (OMB) for use burial under a DoD contract. potential claims under the clause. through June 30, 1998. DoD proposes Michele P. Peterson, • DFARS 252.228–7005, Accident that OMB extend its approval for use through June 30, 2001. Executive Editor, Defense Acquisition Reporting and Investigation Involving Regulations Council. Aircraft, Missiles, and Space Launch DATES: Consideration will be given to all [FR Doc. 98–973 Filed 1–14–98; 8:45 am] comments received by March 16, 1998. Vehicles, requires the contractor to BILLING CODE 5000±04±M report promptly to the Administrative ADDRESSES: Written comments and Contracting Officer all pertinent facts recommendations on the proposed relating to each accident involving an information collection requirement DEPARTMENT OF DEFENSE aircraft, missile, or space launch vehicle should be sent to: Defense Acquisition being manufactured, modified, repaired, Regulations Council, Attn: Mr. Michael Office of the Secretary or overhauled in connection with the Pelkey, PDUSD(A&T)DP(DAR), IMD contract. 3D139, 3062 Defense Pentagon, Defense Science Board; Notice of • DFARS 252.228–7006, Compliance Washington, DC 20301–3062. Telefax Advisory Committee Meetings with Spanish Laws and Insurance, (703) 602–0350. Please cite OMB requires the contractor to provide a Control Number 0704–0231 in all SUMMARY: The Defense Science Board written representation that the correspondence related to this issue. will meet in closed session on February contractor has obtained the required Comments may also be provided 4–5, May 20–21, and October 7–8, 1998 types of insurance in the minimum electronically by e-mailing the at the Pentagon, Arlington, Virginia. amounts specified in the clause. This comments to [email protected]. Please The mission of the Defense Science information is obtained from contractors include OMB Control Number 0704– Board is to advise the Secretary of under service or construction contracts 0231 in the subject line of the e-mail. Defense and the Under Secretary of to be performed in Spain by other than FOR FURTHER INFORMATION CONTACT: Defense for Acquisition & Technology Spanish contractors or subcontractors. Mr. Michael Pelkey, at (703) 602–0131. on scientific and technical matters as Michele P. Peterson, A copy of this information collection they affect the perceived needs of the Executive Editor, Defense Acquisition requirement is available electronically Department of Defense. At these Regulations Council. via the Internet at: http://www.dtic.mil/ meetings the Defense Science Board will [FR Doc. 98–972 Filed 1–14–98; 8:45 am] dfars/ discuss interim findings and tentative BILLING CODE 5000±04±M Paper copies may be obtained from recommendations resulting from Mr. Michael Pelkey, ongoing Task Force activities. The PDUSD(A&T)DP(DAR), IMD 3D139, Board will also discuss plans for future DEPARTMENT OF DEFENSE 3062 Defense Pentagon, Washington, DC consideration of scientific and technical 20301–3062. aspects of specific strategies, tactics, and [OMB Control Number 0704±0231] Title, Associated Form, and OMB policies as they may affect the U.S. Information Collection Requirements; Number: Defense Federal Acquisition national defense posture. Mortuary Services Contracts Regulation Supplement (DFARS) In accordance with Section 10(d) of Subpart 237.70, Mortuary Services, and the Federal Advisory Committee Act, AGENCY: Department of Defense (DoD). the associated clause at DFARS P.L. No. 92–463, as amended (5 U.S.C. ACTION: Notice and request for 252.237–7011; no form is used for this App. II, (1994)), it has been determined comments regarding a proposed information collection; OMB Number that these Defense Science Board extension of an approved information 0704–0231. meetings, concern matters listed in 5 collection requirement. Needs and Uses: This requirement U.S.C. § 552b(c)(1) (1994), and that provides for the collection of necessary accordingly these meetings will be SUMMARY: In compliance with Section information from contractors regarding closed to the public. 3506(c)(2)(A) of the Paperwork the results of the embalming process Reduction Act of 1995 (Pub. L. 104–13), under contracts for mortuary services. Dated: January 9, 1998. DoD announces the proposed extension The information is used to ensure L. M. Bynum, of a public information collection proper preparation of the body for Alternate OSD Federal Register Liaison requirement and seeks public comment shipment and burial. Officer, Department of Defense. on the provisions thereof. Comments are Affected Public: Businesses or other [FR Doc. 98–964 Filed 1–14–98; 8:45 am] invited on: (a) whether the proposed for-profit and not-for-profit institutions. BILLING CODE 5000±04±M

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DEPARTMENT OF EDUCATION opportunity to comment on information two-fold. First, any delay in requesting collection requests. The Office of applications from State Education Notice of Proposed Information Management and Budget (OMB) may Agencies (SEAs) beyond February 1998 Collection Requests amend or waive the requirement for will mean that the demonstration of public consultation to the extent that comprehensive school reform models to AGENCY: Department of Education. public participation in the approval be funded under this legislation will not ACTION: Notice of Proposed Information process would defeat the purpose of the be able to begin until the school year Collection Requests. information collection, violate State or starting in 1999. Thus, the Department will not be able to fulfill the intent of SUMMARY: The Deputy Chief Information Federal law, or substantially interfere Officer, Office of the Chief Information with any agency’s ability to perform its Congress that these comprehensive Officer, invites comments on the statutory obligations. The Deputy Chief innovations begin in the 1998 school proposed information collection Information Officer, Office of the Chief year and provide evidence in requests as required by the Paperwork Information Officer, publishes this succeeding years that can have a Reduction Act of 1995. notice containing proposed information positive influence on the collection requests at the beginning of reauthorization of Title I itself. Second, DATES: An emergency review has been the Departmental review of the this program was developed in the requested in accordance with the Act information collection. Each proposed Congress at the end of the 1998 budget (44 U.S.C. Chapter 3507 (j)), since information collection, grouped by process. It was unclear until the final public harm is reasonably likely to office, contains the following: (1) Type conference on the Department’s budget result if normal clearance procedures of review requested, e.g., new, revision, if this program would actually become are followed. Approval by the Office of extension, existing or reinstatement; (2) law. Thus, the Department could not Management and Budget (OMB) has Title; (3) Summary of the collection; (4) develop materials that could go through been requested by February 9, 1998. A Description of the need for, and the public comment process in a way regular clearance process is also proposed use of, the information; (5) that avoids the need for this emergency beginning. Interested persons are Respondents and frequency of clearance approach. Therefore, ED is invited to submit comments on or before collection; and (6) Reporting and/or requesting approval by February 9, 1998 March 16, 1998. Recordkeeping burden. ED invites in order for the State competitive grant ADDRESSES: Written comments public comment at the address specified programs to be implemented in time for regarding the emergency review should above. Copies of the requests are schools to establish working be addressed to the Office of available from Patrick J. Sherrill at the relationships with the providers of Information and Regulatory Affairs, address specified above. comprehensive school reform models in Attention: Dan Chenok, Desk Officer: The Department of Education is September 1998. Department of Education, Office of especially interested in public comment Frequency: Annually. Management and Budget, 725 17th addressing the following issues: (1) Is Affected Public: Businesses or other Street, NW., Room 10235, New this collection necessary to the proper for-profits; Not-for-profit institutions; Executive Office Building, Washington, functions of the Department, (2) will State, local or Tribal Gov’t, SEAs or D.C. 20503. Requests for copies of the this information be processed and used LEAs. proposed information collection request in a timely manner, (3) is the estimate Reporting and Recordkeeping Hour should be addressed to Patrick J. of burden accurate, (4) how might the Burden: Responses: 56. Burden Hours: Sherrill, Department of Education, 7th & Department enhance the quality, utility, 2,240. D Streets, S.W., Room 5624, Regional and clarity of the information to be [FR Doc. 98–995 Filed 1–14–98; 8:45 am] Office Building 3, Washington, D.C. collected, and (5) how might the BILLING CODE 4000±01±P 20202–4651. Written comments Department minimize the burden of this regarding the regular clearance and collection on the respondents, including requests for copies of the proposed through the use of information DEPARTMENT OF EDUCATION information collection requests should technology. be addressed to Patrick J. Sherrill, Notice of proposed information Dated: January 9, 1998. Department of Education, 600 collection requests Independence Avenue, S.W., Room Gloria Parker, AGENCY: Department of Education. 5624, Regional Office Building 3, Deputy Chief Information Officer, Office of Washington, D.C. 20202–4651, or the Chief Information Officer. ACTION: Notice of Proposed Information should be electronic mailed to the Office of Elementary and Secondary Collection Requests. # internet address [email protected], or Education SUMMARY: The Deputy Chief Information should be faxed to 202–708–9346. Type of Review: New. Officer, Office of the Chief Information FOR FURTHER INFORMATION CONTACT: Title: Comprehensive School Reform Officer, invites comments on the Patrick J. Sherrill (202) 708–8196. Demonstration Program. proposed information collection Individuals who use a Abstract: This application will be requests as required by the Paperwork telecommunications device for the deaf used by the State Education Agencies Reduction Act of 1995. (TDD) may call the Federal Information (SEAs) to obtain funds to provide DATES: An emergency review has been Relay Service (FIRS) at 1–800–877–8339 competitive grants to local education requested in accordance with the Act between 8 a.m. and 8 p.m., Eastern time, agencies to assist local Title I and some (44 U.S.C. Chapter 3507 (j)), since Monday through Friday. non-Title I schools to adopt research- public harm is reasonably likely to SUPPLEMENTARY INFORMATION: Section based comprehensive school reform result if normal clearance procedures 3506 (c)(2)(A) of the Paperwork models. The information will be used to are followed. Approval by the Office of Reduction Act of 1995 (44 U.S.C. review and to approve SEA applications Management and Budget (OMB) has Chapter 3506 (c)(2)(A) requires that the to participate in the program. been requested by January 13, 1998. A Director of OMB provide interested Additional Information: An regular clearance process is also Federal agencies and the public an early emergency request for this collection is beginning. Interested persons are

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2371 invited to submit comments on or before collection; and (6) Reporting and/or Affected Public: Not-for-profit March 16, 1998. Recordkeeping burden. ED invites institutions; State, local or Tribal Gov’t, ADDRESSES: Written comments public comment at the address specified SEAs or LEAs. regarding the emergency review should above. Copies of the requests are Reporting and Recordkeeping Hour be addressed to the Office of available from Patrick J. Sherrill at the Burden: Information and Regulatory Affairs, address specified above. Responses: 1,063. Attention: Dan Chenok, Desk Officer: The Department of Education is Burden Hours: 64. Department of Education, Office of especially interested in public comment [FR Doc. 98–996 Filed 1–14–98; 8:45 am] Management and Budget, 725 17th addressing the following issues: (1) is BILLING CODE 4000±01±P Street, NW., Room 10235, New this collection necessary to the proper Executive Office Building, Washington, functions of the Department, (2) will D.C. 20503. Requests for copies of the this information be processed and used DEPARTMENT OF ENERGY proposed information collection request in a timely manner, (3) is the estimate should be addressed to Patrick J. of burden accurate, (4) how might the Public Hearings on a Comprehensive Sherrill, Department of Education, 7th & Department enhance the quality, utility, National Energy Strategy D Streets, S.W., Room 5624, Regional and clarity of the information to be Office Building 3, Washington, D.C. collected, and (5) how might the AGENCY: Office of Policy and 20202–4651. Written comments Department minimize the burden of this International Affairs, U.S. Department of regarding the regular clearance and collection on the respondents, including Energy. requests for copies of the proposed through the use of information ACTION: Notice of Public Hearing. information collection requests should technology. be addressed to Patrick J. Sherrill, SUMMARY: The U.S. Department of Dated: January 9, 1998. Department of Education, 600 Energy is announcing a series of public Independence Avenue, S.W., Room Gloria Parker, hearings to solicit input from state and 5624, Regional Office Building 3, Deputy Chief Information Officer, Office of local officials, utility representatives, Washington, D.C. 20202–4651, or the Chief Information Officer. industry representatives, public interest should be electronic mailed to the Office of the Secretary groups and other interested parties in internet address #[email protected], or the development of a statutorily should be faxed to 202–708-9346. Type of Review: New. required national energy policy plan, FOR FURTHER INFORMATION CONTACT: Title: America Reads Pilot Sites hereinafter referred to as the Patrick J. Sherrill (202) 708–8196. Letter, and Request for Information from ‘‘Comprehensive National Energy Individuals who use a America Reads Federal Work Study and Strategy’’ or ‘‘Strategy’’. The Department telecommunications device for the deaf President’s Coalition Members. also invites interested parties to submit (TDD) may call the Federal Information Abstract: Improving the teaching and written comments for use in developing Relay Service (FIRS) at 1–800–877–8339 learning of reading is one of the the Strategy. between 8 a.m. and 8 p.m., Eastern time, Department of Education’s seven Dates and Locations: Monday through Friday. priorities. This summer, the Department Houston, Texas. February 12, 1998. 1:00 SUPPLEMENTARY INFORMATION: Section will sponsor America Reads pilot sites p.m. to 5:00 p.m. (Venue TBD) 3506(c)(2)(A) of the Paperwork to offer extended learning time Davis, California. February 13, 1998. Reduction Act of 1995 (44 U.S.C. opportunities for children to practice 8:30 a.m. to 12:30 p.m. (Venue TBD) Chapter 3506(c)(2)(A) requires that the and further develop their reading skills. The letter to literacy leaders will assist Detroit, Michigan. February 17, 1998. Director of OMB provide interested 1:00 p.m. to 5:00 p.m. (Venue TBD) Federal agencies and the public an early the Department in developing and planning quality summer pilot sites. It Washington, D.C. February 19, 1998. opportunity to comment on information 1:00 p.m. to 5:00 p.m. (Venue TBD) collection requests. The Office of will be sent to at least one literacy Management and Budget (OMB) may coalition in every state with priority ADDRESSES: Written comments may be amend or waive the requirement for given to those sites in E.Z.s and E.C.s, sent to the U.S. Department of Energy, public consultation to the extent that as well as those communities that have Office of Policy and International public participation in the approval signed on to the proposed Voluntary Affairs, (PO–4), 1000 Independence process would defeat the purpose of the National Test. The voluntary request for Avenue SW, Washington, D.C. 20585, information collection, violate State or information from the America Reads ATTN: CNES–Hearings. Written Federal law, or substantially interfere Federal Work Study programs and the comments and input are encouraged via with any agency’s ability to perform its President’s Coalition for the America the INTERNET at http:// statutory obligations. The Deputy Chief Reads Challenge members will be www.eren.doe.gov. Information Officer, Office of the Chief posted on the web to allow pilot sites to FOR FURTHER INFORMATION CONTACT: For Information Officer, publishes this be able to utilize their resources. questions regarding the public hearings, notice containing proposed information Additional Information: In order to participation or written submissions, collection requests at the beginning of enable America Reads pilot sites to be please visit the website at http:// the Departmental review of the prepared for their summer reading www.eren.doe.gov or send fax inquiries information collection. Each proposed programs and take full advantage of the to CNES-HEARINGS at 202–586–4025. information collection, grouped by Department of Education’s assistance SUPPLEMENTARY INFORMATION: Section office, contains the following: (1) Type and the experience of other America 801 of the Department of Energy of review requested, e.g., new, revision, Reads Challenge participants, this Organization Act of 1977 requires the extension, existing or reinstatement; (2) information must be collected and President to submit a National Energy Title; (3) Summary of the collection; (4) posted on the world wide web as soon Policy Plan to Congress. The President Description of the need for, and as possible. Therefore, ED is requesting plans to submit a National Energy proposed use of, the information; (5) approval by January 13, 1998. Policy Plan to Congress in 1998. Section Respondents and frequency of Frequency: One time. 801 also states that the President shall

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‘‘seek the active participation by the United States of America and the is located on the Dead River in Franklin regional, State, and local agencies and Government of Switzerland Concerning and Somerset Counties, Maine. instrumentalities and the private sector Civil Uses of Atomic Energy as amended The license for Project No. 2612 was through public hearings in cities and and the Agreement for Cooperation in issued for a period ending December 31, rural communities and other the Peaceful Uses of Nuclear Energy 1997. Section 15(a)(1) of the FPA, 16 Between the Government of the United appropriate means to insure that the U.S.C. 808(a)(1), require’s the States of America and the European views and proposals of all segments of Commission, at the expiration of a Atomic Energy Community the economy are taken into account in license term, to issue from year to year the formulation and review of such (EURATOM). an annual license to the then licensee proposed Plan.’’ The subsequent arrangement to be under the terms and conditions of the The hearings are expected to facilitate carried out under the above-mentioned prior license until a new license is public input on a broad range of energy agreements involves approval of the issued, or the project is otherwise issues with major regional, national and following: RTD/EU(SD)–1 for the disposed of as provided in Section 15 or international impacts including: retransfer of irradiated graphite, fuel any other applicable section of the FPA. • Reducing vulnerability of the U.S. spheres, composed of 32,570.88 grams If the project’s prior license waived the economy to disruptions in energy of enriched uranium, containing applicability of Section 15 of the FPA, supplies; 5,459.10 grams of the isotope U–235 • Producing and using energy in (enriched to 16.76 percent) from then, based on Section 9(b) of the efficient and environmentally Switzerland to Germany. The fuel has Administration Procedure Act, 5 U.S.C. responsible ways, including strategies been irradiated in research experiments 558(c), and as set forth at 18 CFR for meeting U.S. greenhouse gas at the PROTEUS critical experiment 16.21(a), if the licensee of such project emission reductions proposed in facility in Switzerland and will be has filed an application for a subsequent December 1997 at Kyoto, Japan; returned to Forschungszentrum, Julich, license, the licensee may continue to • Promoting international Germany for storage. The material was operate the project in accordance with cooperation in energy use and supply to transferred from Germany to the terms and conditions of the license further U.S. economic, environmental, Switzerland in 1990, under RTD/ after the minor or minor part license and security goals; and SD(EU)–59. expires, until the Commission acts on • Maintaining a diverse set of energy In accordance with Section 131 of the its application. If the licensee of such a options, particularly for the longer-term, Atomic Energy Act of 1954, as amended, project has not filed an application for to ensure adequate, clean energy at it has been determined that this a subsequent license, then it may be reasonable costs. subsequent arrangement will not be required, pursuant to 18 CFR 16.21(b), Participants wishing to speak at the inimical to the common defense and to continue project operations until the hearings must register on-site. The security. Commission issues someone else a speaker registry will open one-half hour This subsequent arrangement will license for the project or otherwise before each hearing and will close one- take effect no sooner than fifteen days orders disposition of the project. half hour after the hearing begins. In after the date of publication of this If the project is subject to Section 15 addition, a website has been identified notice. of the FPA, notice is hereby given that both to accept comments and to Dated: January 9, 1998. an annual license for Project No. 2612 distribute information on the Strategy as For the Department of Energy. is issued to Central Maine Power it is developed. Cherie P. Fitzgerald, Company for a period effective January 1, 1998, through December 31, 1998, or Issued in Washington D.C. on January 9, Director, International Policy and Analysis 1998. Division Office of Arms Control and until the issuance of a new license for Robert W. Gee, Nonproliferation. the project or other disposition under Assistant Secretary for Policy and [FR Doc. 98–1057 Filed 1–14–98; 8:45 am] the FPA, whichever comes first. If issuance of a new license (or other International Affairs, U.S. Department of BILLING CODE 6450±01±P Energy. disposition) does not take place on or [FR Doc. 98–1058 Filed 1–14–98; 8:45 am] before January 1, 1999, notice is hereby BILLING CODE 6450±01±P DEPARTMENT OF ENERGY given that, pursuant to 18 CFR 16.18(c), an annual license under section 15(a)(1) Federal Energy Regulatory of the FPA is renewed automatically DEPARTMENT OF ENERGY Commission without further order or notice by the Commission, unless then Commission Office of Arms Control and [Project No. 2612] orders otherwise. Nonproliferation Policy Central Maine Power Company; Notice If the project is not subject to section Proposed Subsequent Arrangement of Authorization for Continued Project 15 of the FPA, notice is hereby given Operation that Central Maine Power Company is AGENCY: Department of Energy. authorized to continue operation of the ACTION: Subsequent arrangement. January 9, 1998. Flagstaff Project No. 2612 until such On December 28, 1995, Central Maine time as the Commission acts on its SUMMARY: Pursuant to Section 131 of the Power Company, licensee for the application for subsequent license. Atomic Energy Act of 1954, as amended Flagstaff Project No. 2612, filed an Linwood A. Watson, Jr., (42 U.S.C. 2160), notice is hereby given application for a new or subsequent of a proposed ‘‘subsequent license pursuant to the Federal Power Acting Secretary. arrangement’’ under the Agreement for Act (FPA) and the Commission’s [FR Doc. 98–986 Filed 1–14–98; 8:45 am] Cooperation Between the Government of regulations thereunder. Project No. 2612 BILLING CODE 6717±01±M

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DEPARTMENT OF ENERGY Consumers Energy Company describes Any person desiring to protest the its filing as resolving issues arising from filing should file a protest with the Federal Energy Regulatory Consumers’ earlier filing of unexecuted Federal Energy Regulatory Commission, Commission agreements related to Network 888 First Street, N.E., Washington, DC [Docket No. RP98±109±000] Integration Transmission Service. 20426, in accordance with section Any person desiring to be heard or to 385.211 of the Commission’s Rules of CNG Transmission Corporation; Notice protest said filing should file a motion Practice and Procedure. All such of Section 4 Filing to intervene or protest with the Federal protests should be filed as provided in Energy Regulatory Commission, 888 section 154.210 of the Commission’s January 9, 1998. First Street, N.E., Washington, D.C. regulations. Protests will be considered Take notice that on January 6, 1998, 20426, in accordance with Rules 211 by the Commission in determining CNG Transmission Corporation (CNGT), and 214 of the Commission’s Rules of appropriate action, but will not serve to tendered for filing, pursuant to section Practice and Procedure (18 CFR 385.211 make protestants parties to the 4 of the Natural Gas Act, a notice of and 18 CFR 385.214). All such motions proceeding. Copies of this filing are on termination of service on certain or protests should be filed on or before file with the Commission and are specified uncertificated gathering January 20, 1998. Protests will be available for public inspection. pipeline facilities in Jefferson County, considered by the Commission in Linwood A. Watson, Jr., Pennsylvania. CNGT states that it will determining the appropriate action to be Acting Secretary. abandon these facilities by sale to CNG taken, but will not serve to make [FR Doc. 98–982 Filed 1–14–98; 8:45 am] Producing Company effective thirty protestants parties to the proceeding. BILLING CODE 6717±01±M days from the date of filing of the Any person wishing to become a party instant notice. must file a motion to intervene. Copies CNGT states that no contract for of this filing are on file with the DEPARTMENT OF ENERGY transportation of service with CNG will Commission and are available for public be terminated because delivery of gas inspection. Federal Energy Regulatory will occur further downstream of the Linwood A. Watson, Jr., Commission current delivery points. Acting Secretary. Any person desiring to be heard or to [Docket No. RP97±346±013] [FR Doc. 98–992 Filed 1–14–98; 8:45 am] protest said filing should file a motion BILLING CODE 6717±01±M Equitrans, L.P.; Notice of Proposed to intervene or protest with the Federal Changes in FERC Gas Tariff Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C. DEPARTMENT OF ENERGY January 9, 1998. 20426, in accordance with Rules 211 Take notice that on January 7, 1998, and 214 of the Commission’s Rules of Federal Energy Regulatory Equitrans, L.P. (Equitrans) tendered for Practice and Procedure. Under section Commission filing as part of its FERC Gas Tariff the 154.210 of the Commission’s regulation [Docket No. RP97±363±003] following revised tariff sheets, with an all such motions or protests should be effective date of August 1, 1997: filed on or before January 20, 1998. Egan Hub Partners, L.P.; Notice of 3rd Sub Eighth Revised Sheet No. 5 Protests appropriate action to be taken, Compliance Filing 3rd Sub Ninth Revised Sheet No. 6 but will not serve to make protestants 4th Sub Fifth Revised Sheet No. 7 parties to the proceeding. Any person January 9, 1998. 4th Sub First Revised Sheet No. 7A wishing to become a party must file a Take notice that on December 31, 3rd Sub Original Sheet No. 7B motion to intervene. Copies of this filing 1997, Egan Hub Partners, L.P., (Egan 3rd Sub Seventh Revised Sheet No. 8 are on file with the Commission and are Hub) tendered for filing as part of tits Substitute Fourth Revised Sheet No. 10 available for public inspection. FERC Gas Tariff, Original Volume No. 1, 2nd Substitute First Rev Sheet No. 225 2nd Substitute First Rev Sheet No. 256 Linwood A. Watson, Jr., tariff sheets to the filing, with an Acting Secretary. effective date of November 3, 1997. Equitrans states that this filing is made in compliance with the Order on [FR Doc. 98–980 Filed 1–14–98; 8:45 am] Egan Hub states that the filing is being made because it has recently come to Rehearing, Clarification and Compliance BILLING CODE 6717±01±M the attention of Egan Hub that the tariff Filing issued December 24, 1997 (the sheets submitted as part of the December 24 Order) in which the DEPARTMENT OF ENERGY compliance filing did not correspond to Commission held that the tariff sheets the earlier versions of Egan Hub’s tariff. previously accepted for September 1, Federal Energy Regulatory Egan Hub provides notice by the filing effectiveness were accepted effective Commission of its intent to withdraw the November August 1. The December 24 Order required Equitrans to refile the affected [Docket No. ER98±1305±000] 19, 1997 compliance filing in its entirety and submit the instant filing in tariff sheets with an August 1, 1997 Consumers Energy Company; Notice compliance with the October 30 Letter effective date within fifteen days of the of Filing Order. Order. Egan Hub states that in order to reflect Equitrans states that the rate sheets January 9, 1998. all the changes made to comply with the previously accepted by the Commission Take notice that on December 22, October 30, 1997 Letter Order, Egan Hub for September 1, 1997 effectiveness are 1997, Consumers Energy Company is refiling its entire tariff in both a paper included in the filing and bear an tendered what it described as an offer of version and in electronic format. effective date of August 1, 1997. In settlement in Docket No. ER97–1510– Egan Hub states that a copy of the addition, Equitrans proposes to revise 000. The Commission is treating this letter is being served on all parties in the tariff sheets containing section 27.3 filing as a new and distinct filing, and Docket No. RP97–363–000, and because of the General Terms and Conditions to has therefore assigned a new docket of the voluminous nature of the tariff, it indicate the commencement of recovery number, ER98–1305–000, to it. is not being served on parties. of stranded costs beginning on August 1,

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1997. Equitrans also states that certain DEPARTMENT OF ENERGY Commission, unless the Commission other tariff sheets with it filed orders otherwise. previously for September 1, 1997 Federal Energy Regulatory If the project is not subject to section effectiveness are mooted by the instant Commission 15 of the FPA, notice is hereby given filing. [Project No. 2061] that Idaho Power Company is Equitrans states that copies of this rate authorized to continue operation of the filing were served on the parties to this Idaho Power Company; Notice of Lower Salmon Falls Project No. 2061 proceeding, as well as Equitrans’ Authorization for Continued Project until such time as the Commission acts jurisdictional customers and interested Operation on its application for subsequent state commissions. license. January 9, 1998. Linwood A. Watson, Jr. Any person desiring to protest the On December 20, 1995, Idaho Power filing should file a protest with the Company, licensee for the Lower Acting Secretary. Federal Energy Regulatory Commission, Salmon Falls Project No. 2061, filed an [FR Doc. 98–989 Filed 1–14–98; 8:45 am] 888 First Street, NE., Washington, DC application for a new or subsequent BILLING CODE 6717±01±M 20426, in accordance with section license pursuant to the Federal Power 385.211 of the Commission’s Rules of Act (FPA) and the Commission’s Practice and Procedure. All such regulations thereunder. Project No. 2061 DEPARTMENT OF ENERGY protests should be filed as provided in is located on the Snake River in section 154.210 of the Commission’s Federal Energy Regulatory Gooding and Twin Falls Counties, Commission regulations. Protests will be considered Idaho. by the Commission in determining The license for Project No. 2061 was [Docket No. PR98±5±000] appropriate action, but will not serve to issued for a period ending December 23, make protestants parties to the 1997. Section 15(a)(1) of the FPA, 16 LG&E Natural Pipeline Company; proceeding. Copies of this filing are on U.S.C. 808(a)(1), requires the Notice of Petition for Rate Approval file with the Commission and are Commission, at the expiration of a available for public inspection. license term, to issue from year to year January 9, 1998. Lindwood A. Watson, Jr., an annual license to the then licensee Take notice that on December 31, Acting Secretary. under the terms and conditions of the 1997, LG&E Natural Pipeline Company (LG&E) filed pursuant to section [FR Doc. 98–983 Filed 1–14–98; 8:45 am] prior license until a new license is issued, or the project is otherwise 284.123(b)(2) of the Commission’s BILLING CODE 6717±01±M disposed of as provided in section 15 or regulations a petition for rate approval any other applicable section of the FPA. requesting that the Commission approve DEPARTMENT OF ENERGY If the project’s prior license waived the as fair and equitable rates for NGPA applicability of section 15 of the FPA, section 311 transportation services the Federal Energy Regulatory then, based on Section 9(b) of the following: (i) For firm transportation Commission Administrative Procedure Act, 5 U.S.C. service, a demand charge not to exceed 558(c), and as set forth at 18 CFR $2.0893 and a variable charge not to exceed $0.0129 per MMBtu; (ii) for [Docket No. CP96±610±000] 16.21(a), if the licensee of such project has filed an application for a subsequent interruptible transportation service, a Granite State Gas Transmission, Inc.; license, the licensee may continue to volumetric rate not to exceed $0.0186 Notice on Oral Argument operate the project in accordance with per MMBtu; and (iii) for storage the terms and conditions of the license services, those established by contract January 9, 1998. after the minor or minor part license between LG&E and its customers. In accordance with its motion of expires, until the Commission acts on LG&E’s petition states that it is an December 23, 1997, the Public Advocate its application. If the licensee of such a intrastate pipeline within the meaning of the State of Maine (Public Advocate) project has not filed an application for of section 2(16) of the NGPA operating is given ten minutes to present its a subsequent license, then it may be within the State of New Mexico. arguments at the oral argument required, pursuant to 18 CFR 16.21(b), According to its petition, LG&E offers scheduled for January 15, 1998 in this to continue project operations until the both firm and interruptible proceeding. The Public Advocate may Commission issues someone else a transportation services in interstate reserve a portion of this time for license for the project or otherwise commerce under section 311 of the rebuttal. orders disposition of the project. NGPA. It also offers storage services The time allotted to the Public If the project is subject to section 15 under section 311. Advocate herein is separate from and in of the FPA, notice is hereby given that LG&E’s currently effective rates for addition to the time previously allotted an annual license for Project No. 2061 section 311 services were established by to the supporters and opponents of the is issued to Idaho Power Company for a Settlement in Docket Nos. PR94–21– project in our notice issued December a period effective December 24, 1997, 000, et al., which was approved on 10, 1997. through December 23, 1998, or until the August 6, 1996. 76 FERC ¶ 61,181 issuance of a new license for the project (1996). LG&E’s currently effective The Public Advocate must file with or other disposition under the FPA, maximum firm transportation rate under the Commission by 3 p.m. on January whichever comes first. If issuance of a section 311 consists of a maximum 12, 1998, the name of the person who new license (or other disposition) does demand charge of $2.4746 and a will represent the Public Advocate at not take place on or before December 24, maximum variable charge of $0.0117 oral argument. 1998, notice is hereby given that, per MMBtu; the current maximum Linwood A. Watson, Jr., pursuant to 18 CFR 16.18(c), and annual interruptible transportation rate is Acting Secretary. license under section 15(a)(1) of the $0.0930 per MMBtu. The rates for [FR Doc. 98–991 filed 1–14–98; 8:45 am] FPA is renewed automatically without storage services LG&E offers under BILLING CODE 6717±01±M further order or notice by the section 311 are now ‘‘market-based’’,

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2375 and are established through arm’s length suspended the effectiveness of WTG’s Comment date: January 27, 1998, in negotiations. proposed tariff changes until May 1, accordance with Standard Paragraph E Article IX of the Settlement approved 1998. at the end of this notice. on August 6, 1996 required LG&E to file Any person desiring to protest said 3. Texas-New Mexico Power Company an application for rate approval filing, should file a protest with the pursuant to section 284.123(b)(2) on or Federal Energy Regulatory Commission, [Docket No. ER98–1031–000] before December 31, 1997 to justify its 888 First Street, NW., Washington, DC, Take notice that on December 10, then current rates or establish new rates, in accordance with section 385.211 of 1997, Texas-New Mexico Power and to demonstrate that the rates thus the Commission’s Rules and Company, tendered for filing a letter proposed are fair and equitable. LG&E Regulations. All such protests must be approving application for membership states that the purpose of the petition for filed on or before January 16, 1998. in the Western Systems Power Pool rate approval it has filed in the Protests will be considered by the (WSPP). proceeding is to comply with Article IX Commission in determining the Copies of the filing were served upon of the Settlement and the August 6, appropriate action to be taken, but will the New Mexico Public Utility 1996 order. not serve to make the Protestants parties Commission and Public Utility Pursuant to section 284.123(b)(2)(ii), to the proceeding. Copies of the filing Commission of Texas, and all WSPP if the Commission does not act within are on file with the Commission and are members. 150 days of the filing date, LG&E’s available for public inspection in the Comment date: January 22, 1998, in proposed rates will be fair and Public Reference Room. accordance with Standard Paragraph E equitable. The Commission may, prior Linwood A. Watson, Jr., at the end of this notice. to the expiration of the 150 day period, Acting Secretary. extend the time for action or may 4. Central Power and Light Company; [FR Doc. 98–981 Filed 1–14–98; 8:45 am] institute a proceeding to afford parties West Texas Utilities Company; Public an opportunity for written comments BILLING CODE 6717±01±M Service Company of Oklahoma; and for oral presentation of views, data Southwestern Electric Power Company and arguments. Any person desiring to [Docket No. ER98–1034–000] participate in this rate proceeding must FEDERAL ENERGY REGULATORY Take notice that on December 16, file a motion to intervene in accordance COMMISSION 1997, Central Power and Light Company with Rules 211 and 214 of the (CPL), West Texas Utilities Company Commission’s Rules of Practice and [Docket No. DR98±7±000, et al.] (WTU), Public Service Company of Procedure. All motions must be filed Oklahoma (PSO) and Southwestern with the Secretary of the Commission Georgia Power Company, et al. Electric Electric Power Company (SWEPCO) on or before January 26, 1998. The Rate and Corporate Regulation Filings (collectively, the ‘‘CSW Operating petition for rate approval is on file with Companies’’) submitted for filing a the Commission and is available for January 8, 1998. service agreement under which the CSW public inspection. Take notice that the following filings Operating Companies will provide Linwood A. Watson, Jr., have been made with the Commission: transmission service to Avista Energy, Acting Secretary. 1. Georgia Power Company Inc. (Avista), Entergy Power Marketing [FR Doc. 98–984 Filed 1–14–98; 8:45 am] Corp. (Entergy), and Electric BILLING CODE 6717±01±M [Docket No. DR98–7–000] Clearinghouse, Inc. (ECI) in accordance Take notice that on November 18 with the CSW Operating Companies’ 1997, Georgia Power Company, filed a open access transmission service tariff. DEPARTMENT OF ENERGY request for approval for accounting The CSW Operating Companies also purposes only, of certain depreciation- submitted a notice of cancellation for Federal Energy Regulatory related accounting adjustments each firm point-to-point transmission Commission implemented by the Company in 1995 service agreement. [Docket No. RP98±25±002] and 1996. The proposed adjustments The CSW Operating Companies state were approved for retail purposes by the that the filing has been served on ECI, West Texas Gas Inc.; Notice of Georgia Public Service Commission. Entergy, Avista, and the Public Utility Proposed Changes in FERC Gas Tariff Comment date: January 25, 1998, in Commission of Texas. accordance with Standard Paragraph E Comment date: January 22, 1998, in January 9, 1998. at the end of this notice. accordance with Standard Paragraph E Take notice that on December 11, at the end of this notice. 1997, West Texas Gas, Inc. (WTG) 2. Nantahala Power & Light Company tendered for filing as part of its FERC [Docket No. DR98–9–000] 5. Southern California Edison Company Gas Tariff, First Revised Volume No. 1, Take notice that on November 19, [Docket No. ER98–1035–000] in compliance with the Commission’s 1997, Nantahala Power & Light Take notice that on December 11, November 26, 1997 order in this Company, filed a request for approval of 1997, Southern California Edison proceeding, the following tariff sheets, depreciation rates for accounting Company (Edison), tendered for filing to be effective December 1, 1997: purposes only pursuant to Section 302 the Authorized Representatives’ Substitute First Revised Sheet No. 5 of the Federal Power Act. The proposed Procedures For Post-Restructuring Substitute First Revised Sheet No. 7 adjustments were approved for retail Operations And Accounting Substitute First Revised Sheet No. 9 purposes by the North Carolina Utilities (Procedures), and a Notice of WTG states that these tariff sheets Commission effective January 1, 1996. Cancellation of various rate schedules remove the negotiated rate procedures Nantahala Power & Light Company with the City of Anaheim. The from its tariff, as required by the requests that the Commission allow the Procedures address issues relating to the November 26, 1997 order. In the proposed depreciation rates to become operation of the Independent System November 26 order, the Commission effective as of January 1, 1996 also. Operator (ISO) and Power Exchange.

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To the extent necessary, Edison seeks capacity and energy at market-based Tariff, Original Volume No. 1. The waiver of the 60 day prior notice rates pursuant to Southwestern’s proposed rider would result in a rate requirement and requests that the market-based sales tariff. decrease in accordance with the Commission assign to the Procedures an Comment date: January 22, 1998, in provisions of the current rate schedules effective date concurrent with the date accordance with Standard Paragraph E contained in Service Agreement No. 6, the ISO assumes operational control of at the end of this notice. under FERC Electric Tariff Original Edison’s transmission facilities, which 8. Additional Signatories to PJM Volume No. 1. is expected to be January 1, 1998. Interconnection, L.L.C. Operating The proposed rider is being filed in Copies of this filing were served upon Agreement order to implement provisions of the the Public Utilities Commission of the current rate schedules contained in State of California and all interested [Docket No. ER98–1039–000] Service Agreement No. 6, which are parties. Take notice that on December 11, already on file with the Commission. Comment date: January 22, 1998, in 1997, the PJM Interconnection, L.L.C. The current rate schedules contained in accordance with Standard Paragraph E (PJM) filed, on behalf of the Members of Service Agreement No. 6 are the product at the end of this notice. the LLC, a completed membership of a comprehensive restructuring of application for Entergy Power Marketing 6. Niagara Mohawk Power Corporation Deseret’s financial obligations. Corporation, allowing Entergy Power Comment date: January 22, 1998, in [Docket No. ER98–1037–000] Marketing Corporation to become a accordance with Standard Paragraph E Take notice that on December 11, member. PJM requests the effective date at the end of this notice. 1997, Niagara Mohawk Power to be the day after the filing was Corporation (NMPC), tendered for filing received by FERC. 12. Orange and Rockland Utilities, Inc. with the Federal Energy Regulatory Comment date: January 22, 1998, in [Docket No. ER98–1044–000] Commission executed form Service accordance with Standard Paragraph E Take notice that on December 12, Agreements between NMPC and at the end of this notice. 1997, Orange and Rockland Utilities, multiple parties (Purchasers). The 9. Louisville Gas and Electric Company Inc. (Orange and Rockland), filed a Service Agreements specify that the Service Agreement between Orange and Purchasers have signed on to and have [Docket No. ER98–1041–000] Rockland and Plum Street Energy agreed to the terms and conditions of Take notice that on December 11, Marketing (Customer). This Service NMPC’s Power Sales Tariff designated 1997, Louisville Gas and Electric Agreement specifies that Customer has as NMPC’s FERC Electric Tariff, Company, tendered for filing copies of agreed to the rates, terms and conditions Original Volume No. 2. This Tariff, service agreements between Louisville of Orange and Rockland Open Access approved by FERC on April 15, 1994, Gas and Electric Company and Electric Transmission Tariff filed on July 9, and which has an effective date of Clearinghouse, Inc. under Rate GSS. 1996, in Docket No. OA96–210–000. March 13, 1993, will allow NMPC and Comment date: January 22, 1998, in the Purchasers to enter into separately accordance with Standard Paragraph E Orange and Rockland requests waiver scheduled transactions under which at the end of this notice. of the Commission’s sixty-day notice requirements and an effective date of NMPC will sell to the Purchasers 10. Consumers Energy Company capacity and/or energy as the parties November 25, 1997, for the Service may mutually agree. [Docket No. ER98–1042–000] Agreement. Orange and Rockland has In its filing letter, NMPC also Take notice that on December 11, served copies of the filing on The New included a Certificate of Concurrence 1997, Consumers Energy Company York State Public Service Commission for each Purchaser. (CECo), tendered for filing Service and on the Customer. NMPC is: (a) Generally requesting an Agreements for Network Integration Comment date: January 22, 1998, in effective date of December 1, 1997, for Transmission Service and Network accordance with Standard Paragraph E the agreements, and (b) requesting Operating Agreements for the following at the end of this notice. customers: waiver of the Commission’s notice 13. Northern States Power Company requirements for good cause shown. Martin Marietta Magnesia Specialties (Minnesota Company), Northern States NMPC has served copies of the filing Georgia-Pacific Corporation Power Company (Wisconsin Company) upon the New York State Public Service Keeler Brass Company Commission, and the companies These filings were made pursuant to [Docket No. ER98–1045–000] included in a Service List enclosed with CECo’s Open Access Transmission Take notice that on December 12, the filing. Tariff and the Michigan Public Service 1997, Northern States Power Company Comment date: January 22, 1998, in Commission retail direct access (Minnesota) and Northern States Power accordance with Standard Paragraph E program. CECo requests an effective Company (Wisconsin) (collectively at the end of this notice. dates of November 18, 1997. known as NSP), tendered for filing an 7. Southwestern Public Service Co. Comment date: January 22, 1998, in Electric Service Agreement between accordance with Standard Paragraph E NSP and Cinergy Services, Inc., as [Docket No. ER98–1038–000] at the end of this notice. Agent for and on behalf of The Take notice that on December 11, Cincinnati Gas & Electric Company and 11. Deseret Generation & Transmission 1997, New Century Services, Inc., on PSI Energy, Inc. (Customer). This Co-operative behalf of Southwestern Public Service Electric Service Agreement is an Company (Southwestern), submitted an [Docket No. ER98–1043–000] enabling agreement under which NSP executed umbrella service agreement Take notice that on December 10, may provide to Customer the electric under Southwestern’s market-based 1997, Deseret Generation & services identified in NSP Operating sales tariff with UtiliCorp United, Inc., Transmission Co-operative (Deseret), Companies Electric Services Tariff (UtiliCorp). This umbrella service tendered for filing a proposed rider to Original Volume No. 4. NSP requests agreement provides for Southwestern’s its Supplement No. 6, to Service that this Electric Service Agreement be sale and UtiliCorp’s purchase of Agreement No. 6, under FERC Electric made effective on November 14, 1997.

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Comment date: January 22, 1998, in 18. FirstEnergy System Comment date: January 22, 1998, in accordance with Standard Paragraph E [Docket No. ER98–1050–000] accordance with Standard Paragraph E at the end of this notice. at the end of this notice. Take notice that on December 12, 14. Central Maine Power Company 1997, FirstEnergy System, tendered for 22. PJM Interconnection, L.L.C. [Docket No. ER98–1046–000] filing Service Agreements to provide [Docket No. ER98–1054–000] Non-Firm Point-to-Point Transmission Take notice that on December 12, Service for AYP Energy, Incorporated, Take notice that on December 12, 1997, Central Maine Power Company Cinergy Services, Incorporated, MidCon 1997, PJM Interconnection, L.L.C. (PJM), (CMP), tendered for filing an executed Power Services Corporation, Northeast tendered for filing executed service service agreement for sale of capacity Utilities Service Company, and Virginia agreements for point-to-point service and/or energy entered into with Orange Electric and Power Company, the under the PJM Open Access Tariff with & Rockland Utilities. Service will be Transmission Customers. Services are Enron Power Marketing, Inc., and South provided pursuant to CMP’s Wholesale being provided under the FirstEnergy Jersey Energy Company. Copies of this filing were served upon Market Tariff, designated rate schedule System Open Access Transmission the parties to the service agreements and CMP—FERC Electric Tariff, Original Tariff submitted for filing by the Federal the regional transmission owners in Volume No. 4. Energy Regulatory Commission in Comment date: January 22, 1998, in PJM. Docket No. ER97–412–000. The accordance with Standard Paragraph E Comment date: January 22, 1998, in proposed effective date under the at the end of this notice. accordance with Standard Paragraph E Service Agreements is December 1, at the end of this notice. 15. Duquesne Light Company 1997. Comment date: January 22, 1998, in [Docket No. ER98–1047–000] 23. Merchant Energy Group of the accordance with Standard Paragraph E Americas, Inc. Take notice that December 12, 1997, at the end of this notice. Duquesne Light Company (DLC), filed a [Docket No. ER98–1055–000] Service Agreement dated December 8, 19. Northern Indiana Public Service Take notice that on December 12, 1997, with American Municipal Company 1997, Merchant Energy Group of the Power—Ohio under DLC’s Open Access [Docket No. ER98–1051–000] Americas, Inc. (MEGA), applied to the Transmission Tariff (Tariff). The Service Take notice that on December 12, Commission for acceptance of MEGA Agreement adds American Municipal 1997, Northern Indiana Public Services Rate Schedule FERC No. 1, the granting Power—Ohio as a customer under the Company (Northern), filed a Service of certain blanket approvals, including Tariff. DLC requests an effective date of Agreement pursuant to its Power Sales the authority to sell electricity at December 8, 1997, for the Service Tariff with PP&L, Inc. market-based rates, and the waiver of Agreement. Copies of this filing have been sent to certain Commission Regulations. Comment date: January 22, 1998, in PP&L, Inc., to the Indiana Utility MEGA intends to engage in wholesale accordance with Standard Paragraph E Regulatory Commission, and to the electric power and energy purchases at the end of this notice. Indiana Office of Utility Consumer and sales as a marketer. Comment date: January 22, 1998, in 16. Central Maine Power Company Counselor. Comment date: January 22, 1998, in accordance with Standard Paragraph E [Docket No. ER98–1048–000] accordance with Standard Paragraph E at the end of this notice. Take notice that on December 12, at the end of this notice. 24. Wisconsin Public Service 1997, Central Maine Power Company Corporation (CMP), tendered for filing an executed 20. Northern Indiana Public Service service agreement for sale of capacity Company [Docket No. ER98–1056–000] and/or energy entered into with [Docket No. ER98–1052–000] Take notice that on December 12, PacifiCorp Power Marketing, Inc. Take notice that on December 12, 1998, Wisconsin Public Service Service will be provided pursuant to 1997, Northern Indiana Public Services Corporation (WPSC), tendered for filing CMP’s Wholesale Market Tariff, Company (Northern), filed a Service an amendment to its February 22, 1993, designated rate schedule CMP—FERC Agreement pursuant to its Power Sales Agreement with the City of Marshfield Electric Tariff, Original Volume No. 4. Tariff with Tenaska Power Services concerning the ownership and operation Comment date: January 22, 1998, in Company. of combustion turbine generation. The accordance with Standard Paragraph E Copies of this filing have been sent to amendment implements a revision to at the end of this notice. Tenaska Power Services Company, to the capacity rating of the West Marinette Unit. 17. Central Maine Power Company the Indiana Utility Regulatory Commission, and to the Indiana Office Wisconsin Public Service requests [Docket No. ER98–1049–000] of Utility Consumer Counselor. waiver of the Commission’s Regulation Take notice that on December 12, Comment date: January 22, 1998, in to permit the amendment to become 1997, Central Maine Power Company accordance with Standard Paragraph E effective on January 1, 1998. (CMP), tendered for filing an executed at the end of this notice. Comment date: January 22, 1998, in accordance with Standard Paragraph E service agreement for sale of capacity 21. Louisville Gas and Electric at the end of this notice. and/or energy entered into with Company Rainbow Energy Marketing Corporation. 25. California Independent System [Docket No. ER98–1053–000] Service will be provided pursuant to Operator Corporation CMP’s Wholesale Market Tariff, Take notice that on December 12, designated rate schedule CMP—FERC 1997, Louisville Gas and Electric [Docket No. ER98–1057–000] Electric Tariff, Original Volume No. 4. Company, tendered for filing copies of Take notice that on December 12, Comment date: January 22, 1998, in a service agreement between Louisville 1997, the California Independent accordance with Standard Paragraph E Gas and Electric Company and Southern System Operator Corporation (ISO), at the end of this notice. Company Services under Rate GSS. tendered for filing a Responsible

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Participating Transmission Owner FEDERAL ENERGY REGULATORY 5. Louisville Gas and Electric Company Agreement executed by the ISO and COMMISSION [Docket No. ER98–1061–000] Pacific Gas and Electric Company for Take notice that on December 15, approval by the Commission. [Docket No. ER97±905±002, et al.] 1997, Louisville Gas and Electric The ISO states that this filing has been Company, tendered for filing copies of served on all parties listed on the Pacific Gas & Electric Company, et al. service agreements between Louisville official service list in the above Electric Rate and Corporate Regulation Gas and Electric Company and Electric Filings referenced dockets, including the Clearinghouse, Inc., under Rate GSS. California Public Utilities Commission. January 9, 1998. Comment date: January 23, 1998, in accordance with Standard Paragraph E Comment date: January 22, 1998, in Take notice that the following filings at the end of this notice. accordance with Standard Paragraph E have been made with the Commission: at the end of this notice. 6. Tampa Electric Company 1. Pacific Gas & Electric Company [Docket No. ER98–1062–000] 26. California Independent System [Docket No. ER97–905–002] Operator Corporation Take notice that on December 15, Take notice that on December 15, 1997, Tampa Electric Company (Tampa [Docket No. ER98–1058–000] 1997, Pacific Gas & Electric Company, Electric), tendered for filing a Contract Take notice that on December 12, tendered for filing proposed revisions to for the Purchase and Sale of Power and 1997, the California Independent the principles for TELSA-Midway Energy (Contract) between Tampa System Operator Corporation (ISO), Transmission Service. Electric and the Tennessee Valley tendered for filing a Responsible Comment date: January 23, 1998, in Authority (TVA). The Contract provides Participating Transmission Owner accordance with Standard Paragraph E for the negotiation of individual Agreement executed by the ISO and at the end of this notice. transactions in which Tampa Electric Southern California Edison Company will sell power and energy to TVA. 2. Northeast Utilities Services Company Tampa Electric proposes an effective for approval by the Commission. [Docket No. ER98–197–001] date of December 15, 1997, for the The ISO states that this filing has been Contract, or, if the Commission’s notice Take notice that on December 18, served on all parties listed on the requirement cannot be waived, the 1997, Northeast Utilities Company, official service list in the above earlier of February 13, 1998, or the date tendered for filing its refund report in referenced dockets, including the the Contract is accepted for filing. the above-referenced docket. California Public Utilities Commission. Copies of the filing have been served Comment date: January 23, 1998, in on TVA and the Florida Public Service Comment date: January 22, 1998, in accordance with Standard Paragraph E accordance with Standard Paragraph E Commission. at the end of this notice. Comment date: January 23, 1998, in at the end of this notice. 3. Houston Lighting & Power Company accordance with Standard Paragraph E Standard Paragraph at the end of this notice. [Docket No. ER98–950–000] 7. Union Electric Company E. Any person desiring to be heard or Take notice that on December 10, to protest said filing should file a 1997, Houston Lighting & Power [Docket No. ER98–1064–000] motion to intervene or protest with the Company, tendered for filing a Notice of Take notice that on December 15, Federal Energy Regulatory Commission, withdrawal of its Service Agreement in 1997, Union Electric Company (UE), 888 First Street, N.E., Washington, D.C. the above-referenced docket. tendered for filing a Service Agreement 20426, in accordance with Rules 211 Comment date: January 23, 1998, in for Non-Firm Point-to-Point and 214 of the Commission’s Rules of accordance with Standard Paragraph E Transmission Service between UE and Practice and Procedure (18 CFR 385.211 at the end of this notice. Northern States Power Company (NSP). and 18 CFR 385.214). All such motions UE asserts that the purpose of the or protests should be filed on or before 4. Duquesne Light Company Agreement is to permit UE to provide the comment date. Protests will be [Docket No. ER98–1060–000] transmission service to NSP pursuant to considered by the Commission in UE’s Open Access Transmission Tariff Take notice that on December 15, filed in Docket No. OA96–50. determining the appropriate action to be 1997, Duquesne Light Company (DLC), taken, but will not serve to make Comment date: January 23, 1998, in filed a Service Agreement for Retail accordance with Standard Paragraph E protestants parties to the proceeding. Network Integration Transmission at the end of this notice. Any person wishing to become a party Service and a Network Operating must file a motion to intervene. Copies Agreement for Retail Network 8. Union Electric Company of this filing are on file with the Integration Transmission Service dated [Docket No. ER98–1065–000] Commission and are available for public November 15, 1997, with Wheeled Take notice that on December 15, inspection. Electric Power Co., under DLC’s Open 1997, Union Electric Company (UE), Linwood A. Watson, Jr., Access Transmission Tariff (Tariff). The tendered for filing Service Agreements Acting Secretary. Service Agreement and Network for Firm Point-to-Point Transmission [FR Doc. 98–1020 Filed 1–14–98; 8:45 am] Operating Agreement adds Wheeled Services between UE and Northern Electric Power Co., as a customer under BILLING CODE 6717±01±P States Power Company and Williams the Tariff. DLC requests an effective date Energy Services Company. UE asserts of November 15, 1997, for the Service that the purpose of the Agreements is to Agreement. permit UE to provide transmission Comment date: January 23, 1998, in service to the parties pursuant to UE’s accordance with Standard Paragraph E Open Access Transmission Tariff filed at the end of this notice. in Docket No. OA96–50.

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Comment date: January 23, 1998, in MidAmerican requests an effective (Tariff), filed in compliance with FERC accordance with Standard Paragraph E date of November 24, 1997, for the Order No. 888A. at the end of this notice. Agreements with AEPSC, CNG and NPE, SDG&E filed the executed Service and December 4, 1997, for the Agreement with the Commission in 9. Wisconsin Public Service Agreement with Entergy and compliance with applicable Corporation accordingly seeks a waiver of the Commission Regulations. SDG&E also [Docket No. ER98–1066–000] Commission’s notice requirement. provided Sheet No. 114 (Attachment E) Take notice that on December 15, MidAmerican has served a copy of the to the Tariff, which is a list of current 1997, Wisconsin Public Service filing on AEPSC, CNG, NPE, Entergy, subscribers. SDG&E requests waiver of Corporation (WPSC), tendered for filing the Iowa Utilities Board, the Illinois the Commission’s notice requirement to a letter agreement terminating the Commerce Commission and the South permit an effective date of February 16, Partial Assignment Agreement between Dakota Public Utilities Commission. 1998. WPSC and Morgan Stanley Capital Comment date: January 23, 1998, in Copies of this filing were served upon Group, Inc.; a letter of consent to the accordance with Standard Paragraph E the Public Utilities Commission of the termination executed by Oconto Electric at the end of this notice. State of California and all interested parties. Cooperative (OEC); and a request to 12. PECO Energy Company terminate a partial requirements service Comment date: January 23, 1998, in agreement between WPSC and OEC [Docket No. ER98–1069–000] accordance with Standard Paragraph E under which no service has yet been Take notice that on December 15, at the end of this notice. provided. The terminations are 1997, PECO Energy Company (PECO) 15. Maine Electric Power Company Inc. requested to become effective on filed under § 205 of the Federal Power November 30, 1997. Act, 16 U.S.C. 792 et seq., a Transaction [Docket No. ER98–1072–000] Comment date: January 23, 1998, in Agreement dated November 20, 1997, Take notice that on December 15, accordance with Standard Paragraph E with Cinergy Resources, Inc. (CRI), 1997, Maine Electric Power Company, at the end of this notice. under PECO’s FERC Electric tariff Inc. (MEPCO), tendered for filing a Original Volume No. 1 (Tariff). The service agreement for Non-Firm Point- 10. The Dayton Power and Light Co. Transaction Agreement is for a term of to-Point Transmission Service entered [Docket No. ER98–1067–000] thirteen (13) months. into with The Cincinnati Gas & Electric Take notice that on December 15, PECO requests an effective date of Company, PSI Energy, Inc. (collectively 1997, The Dayton Power and Light December 1, 1997, for the Transaction Cinergy Operating Companies), and Company (Dayton), submitted service Agreement. Cinergy Services, Inc., as agent for and agreements establishing American PECO states that copies of this filing on behalf of the Cinergy Operating Municipal Power-Ohio, Inc., DTE have been supplied to CRI and to the Companies. Service will be provided Energy Trading, Inc., PP&L, Inc., as Pennsylvania Public Utility pursuant to MEPCO’s Open Access customers under the terms of Dayton’s Commission. Transmission Tariff, designated rate Open Access Transmission Tariff. Comment date: Janaury 23, 1998, in schedule MEPCO—FERC Electric Tariff, Dayton requests an effective date of accordance with Standard Paragraph E Original Volume No. 1, as one day subsequent to this filing for the at the end of this notice. supplemented. service agreements. Accordingly, 13. Northwestern Public Service Comment date: January 23, 1998, in Dayton requests waiver of the Company accordance with Standard Paragraph E Commission’s notice requirements. at the end of this notice. Copies of the filing were served upon [Docket No. ER98–1070–000] 16. FirstEnergy System establishing American Municipal Take notice that on December 15, Power-Ohio, Inc., DTE Energy Trading, 1997, Northwestern Public Service [Docket No. ER98–1073–000] Inc., PP&L, Inc., and the Public Utilities Company (NWPS), tendered for filing a Take notice that on December 15, Commission of Ohio. Service Agreement for Non-Firm Point- 1997, FirstEnergy System filed Service Comment date: January 23, 1998, in to-Point Transmission Services by and Agreements to provide Non-Firm Point- accordance with Standard Paragraph E between Northwestern Public Service to-Point Transmission Service for AES at the end of this notice. and Tenaska Power Services Co. Power, Incorporated, CNG Power Copies of the filing were served upon 11. MidAmerican Energy Company Services Corporation, The Dayton Power NWPS’s wholesale electric customers, and Light Company, Equitable Power Docket No. ER98–1068–000 interested public bodies, and all parties Services Company, Federal Energy Take notice that on December 15, previously requesting copies. Sales, Incorporated, Koch Energy 1997, MidAmerican Energy Company Comment date: January 23, 1998, in Trading, Incorporated, Minnesota Power (MidAmerican), 666 Grand Avenue, Des accordance with Standard Paragraph E & Light Company, New York State Moines, Iowa 50309, filed with the at the end of this notice. Electric & Gas Corporation, NorAm Commission three Non-Firm 14. San Diego Gas & Electric Company Energy Services, Incorporated, Transmission Service Agreements with Pennsylvania Power & Light, American Electric Power Service [Docket No. ER98–1071–000] Incorporated, Rainbow Energy Corporation (AEPSC), dated November Take notice that on December 15, Marketing Corporation and Wabash 24, 1997, CNG Power Services 1997, San Diego Gas & Electric Valley Power Association, Incorporated, Corporation (CNG), dated November 24, Company (SDG&E), tendered for filing the Transmission Customers. Services 1997, and NP Energy Inc. (NPE), dated and acceptance, pursuant to 18 CFR are being provided under the November 24, 1997, and Entergy Power 35.13, Service Agreement (Agreement), FirstEnergy System Open Access Marketing Corp. (Entergy), dated with ConAgra Energy Services Transmission Tariff submitted for filing December 4, 1997, entered into pursuant (ConAgra), for Point-to-Point by Federal Energy Regulatory to MidAmerican’s Open Access Transmission Service under SDG&E’s Commission in Docket No. ER97–412– Transmission Tariff. Open Access Transmission Tariff 000. The proposed effective date under

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2380 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices the Service Agreements is December 1, PECO requests an effective date of Point Transmission Service Agreement 1997. December 8, 1997, for the Service between LG&E and Virginia Power Comment date: January 23, 1998, in Agreement. under LG&E’s Open Access accordance with Standard Paragraph E PECO states that copies of this filing Transmission Tariff. at the end of this notice. have been supplied to GAR and to the Comment date: January 23, 1998, in Pennsylvania Public Utility accordance with Standard Paragraph E 17. Wisconsin Electric Power Co. Commission. at the end of this notice. [Docket No. ER98–1074–000] Comment date: January 23, 1998, in 24. Louisville Gas and Electric accordance with Standard Paragraph E Take notice that on December 15, Company 1997, Wisconsin Electric Power at the end of this notice. [Docket No. ER98–1081–000] Company (Wisconsin Electric), tendered 20. Wisconsin Power and Light for filing a Short Term Firm Company Take notice that on December 15, Transmission Service Agreement and a 1997, Louisville Gas and Electric non-firm Transmission Service [Docket No. ER98–1077–000] Company (LG&E), tendered for filing an Agreement between itself and Tenaska Take notice that on December 15, executed Short-Term Firm Point-to- Power Services Company (Tenaska). 1997, Wisconsin Power and Light Point Transmission Service Agreement The Transmission Service Agreements Company (WP&L), tendered for filing between LG&E and Florida Power and allow Tenaska to receive transmission executed Form of Service Agreements Light Company (FP&L), under LG&E’s services under Wisconsin Electric’s for Firm and Non-Firm Point-to-Point Open Access Transmission Tariff. FERC Electric Tariff, Volume No. 7, Transmission Service, establishing Comment date: January 23, 1998, in which is pending Commission Tenaska Power Services Co., as a point- accordance with Standard Paragraph E consideration in Docket No. OA97–578. to-point transmission customer under at the end of this notice. the terms of WP&L’s transmission tariff. Wisconsin Electric requests an 25. PECO Energy Company effective date coincident with its filing WP&L requests an effective date of and waiver of the Commission’s notice December 5, 1997, and; accordingly, [Docket No. ER98–1109–000] requirements in order to allow for seeks waiver of the Commission’s notice Take notice that on December 17, economic transactions as they appear. requirements. A copy of this filing has 1997, PECO Energy Company (PECO), Copies of the filing have been served on been served upon the Public Service filed revised sheets to its FERC Electric Tenaska, the Public Service Commission Commission of Wisconsin. Tariff Original Volume No. 1 (the of Wisconsin and the Michigan Public Comment date: January 23, 1998, in Tariff). The revised sheets contain Service Commission. accordance with Standard Paragraph E modifications to certain rates, terms and Comment date: Janaury 23, 1998, in at the end of this notice. conditions of the Tariff, which would accordance with Standard Paragraph E 21. Louisville Gas and Electric enable PECO to sell, assign or transfer at the end of this notice. Company rights. PECO requested an effective date 18. PECO Energy Company of December 18, 1997. [Docket No. ER98–1078–000] PECO states that copies of its filing [Docket No. ER98–1075–000] Take notice that on December 15, have been served on the Pennsylvania Take notice that on December 15, 1997, Louisville Gas and Electric Public Utility Commission and on all 1997, PECO Energy Company (PECO), Company, tendered for filing copies of customers who have executed service filed a Service Agreement dated service agreements between Louisville agreements under the Tariff. December 1, 1997, with Allegheny Gas and Electric Company and Market Comment date: January 23, 1998, in Energy Solutions, Inc. (AES), under Responsive Energy Inc., under Rate accordance with Standard Paragraph E PECO’s FERC Electric Tariff Original GSS. at the end of this notice. Volume No. 1 (Tariff). The Service Comment date: January 23, 1998, in 26. The Dayton Power and Light Agreement adds AES as a customer accordance with Standard Paragraph E Company under the Tariff. at the end of this notice. PECO requests an effective date of [Docket No. ER98–1292–000] December 1, 1997, for the Service 22. Louisville Gas and Electric Company Take notice that The Dayton Power Agreement. and Light Company (Dayton) on PECO states that copies of this filing [Docket No. ER98–1079–000] December 19, 1997, tendered for filing have been supplied to AES and to the Take notice that on December 15, a revised Open Access Transmission Pennsylvania Public Utility 1997, Louisville Gas and Electric Tariff. Dayton requests an effective date Commission. Company, tendered for filing copies of of December 19, 1997. Comment date: January 23, 1998, in a service agreement between Louisville Copies of this filing were served on accordance with Standard Paragraph E Gas and Electric Company and Hoosier customers under the tariff and the at the end of this notice. Energy Rural Electric Coop Inc., under Public Utilities Commission of Ohio. 19. PECO Energy Company Rate GSS. Comment date: January 23, 1998, in Comment date: January 23, 1998, in accordance with Standard Paragraph E [Docket No. ER98–1076–000] accordance with Standard Paragraph E at the end of this notice. at the end of this notice. Take notice that on December 15, 27. United States Department of 1997, PECO Energy Company (PECO), 23. Louisville Gas and Electric Energy—Bonneville Power filed a Service Agreement dated Company Administration December 8, 1997, with GPU Advanced Resources, Inc. (GAR), under PECO’s [Docket No. ER98–1080–000] [Docket No. NJ97–3–002] FERC Electric Tariff Original Volume Take notice that on December 15, Take notice that on December 19, No. 1 (Tariff). The Service Agreement 1997, Louisville Gas and Electric 1997, the Bonneville Power adds GAR as a customer under the Company (LG&E), tendered for filing an Administration of the United States Tariff. executed Short-Term Firm Point-To- Department of Energy tendered its

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2381 compliance filing in response to earlier service. Southwestern has developed Commission and are available for public Commission orders in this proceeding. rates related to such terms and inspection. Comment date: January 26, 1998, in conditions, which are in the approval Linwood A. Watson, Jr., accordance with Standard Paragraph E process, and are expected to be Acting Secretary. at the end of this notice. implemented January 1, 1998. Notice of [FR Doc. 98–1021 Filed 1–14–98; 8:45 am] such rates will be published in the BILLING CODE 6717±01±P 28. United States Department of Energy Federal Register upon their receiving [Docket No. NJ98–1–000] interim approval. Subsequent to interim Take notice that on December 31, approval, Southwestern’s wholesale DEPARTMENT OF ENERGY 1997, the United States Department of power and transmission rates will be Energy, Western Area Power filed with the Commission with a Federal Energy Regulatory Administration (Western), submits its request for confirmation and approval Commission open-access transmission service tariff on a final basis. Notice of Conduit Exemption terms and conditions with the Federal Comment date: January 30, 1998, in Energy Regulatory Commission accordance with Standard Paragraph E January 9, 1998. (Commission). In accordance with Rule at the end of this notice. 207 of the Commission’s Rules of Take notice that the following 30. Colstrip Energy, Limited Practice and Procedure, 18 CFR 385.207, hydroelectric application has been filed Partnership and 18 CFR 35.28(e), Western is with the Commission and is available requesting a declaratory order that its [Docket No. QF84–377–009] for public inspection: voluntary transmission tariff meets or On December 18, 1997, Colstrip a. Type of Application: Conduit exceeds the requirements of the Energy, Limited Partnership Exemption (Tendered Notice). Commission’s Order No. 888 (Final Rule (Applicant), 1087 W. River Street, Suite b. Project No.: 11610–000. on Open Access and Stranded Costs). In 200, Boise, Idaho 83702 submitted for c. Date filed: November 7, 1997. addition, Western is seeking a waiver filing an application for recertification from requirements of the Commission’s of a facility as a qualifying small power d. Applicant: Gary R. Hobbs. Order No. 888, which would require production facility pursuant to Section Western to act contrary to the laws e. Name of Project: Cherry Grove 292.207(b) of the Commission’s Project. which govern its activities. Western is Regulations. No determination has been also seeking an exemption in lieu of made that the submittal constitutes a f. Location: At the Crab Creek Canyon, paying a filing fee applicable to complete filing. in Utah County, Utah. petitions for declaratory orders because According to the applicant, the small g. Filed Pursuant to: Federal Power it is an agency of the United States Act 16 U.S.C. §§ 791(a)–825(r). Department of Energy, and therefore power production facility, is located in exempt from filing fees, as provided in Rosebud County, Montana. The h. Applicant Contact: Gary R. Hobbs, 18 CFR 381.012(a), 381.108(a), and Commission most recently recertified H.C. 13, Box 520, Fairview, UT 84629, 381.302)(c). the facility in Colstrip Energy Limited (801) 873–3343. Partnership, 74 FERC ¶ 62,072 (1996). Comment date: January 30, 1998, in i. FERC Contact: Robert W. Bell (202) The instant application for accordance with Standard Paragraph E 219–2806. at the end of this notice. recertification is to reflect changes in the upstream ownership of the facility j. Description of Project: The proposed 29. United States Department of Energy, and in the fuel supply for the facility. project consists of: (1) A powerhouse Southwestern Power, Administration Comment date: 15 days after the date that would be built on the City of Transmission Service Terms and of publication of this notice in the Spanish Fork’s 14-inch-diameter, Conditions Federal Register, in accordance with ductile iron pipeline, with one generating unit having an installed [Docket No. NJ98–2–000] Standard Paragraph E at the end of this notice. capacity of 224-kW. The applicant Take notice that the Southwestern would use all the power generated for Power Administration (Southwestern), Standard Paragraph a proposed housing development. The on December 31, 1997, tendered for average annual generation would be E. Any person desiring to be heard or filing for Commission review of 1,726,000 kWh. Southwestern’s open access to protest said filing should file a transmission terms and conditions. motion to intervene or protest with the k. Under section 4.32(b)(7) of the These transmission terms and Federal Energy Regulatory Commission, Commission’s regulations (18 CFR), if conditions were the subject of 888 First Street, N.E., Washington, D.C. any resource agency, Indian Tribe, or Southwestern administrative 20426, in accordance with Rules 211 person believes that the applicant proceedings that preceded adoption of and 214 of the Commission’s Rules of should conduct an additional scientific such terms and conditions. Practice and Procedure (18 CFR 385.211 study to form an adequate factual basis Southwestern tendered for filing its and 18 CFR 385.214). All such motions for a complete analysis of the open access transmission tariff terms or protests should be filed on or before application on its merits, they must file and conditions with a Petition for the comment date. Protests will be a request for the study with the Declaratory Order that said terms and considered by the Commission in Commission, not later than 60 days after conditions meet or exceed the determining the appropriate action to be the date of this notice, and must serve Commission’s open access policies, and taken, but will not serve to make a copy of the request on the applicant. are consistent with the reciprocity protestants parties to the proceeding. Linwood A. Watson, Jr. compliance principles of the Any person wishing to become a party Acting Secretary. Commission’s final rule on non- must file a motion to intervene. Copies [FR Doc. 98–985 Filed 1–14–98; 8:45 am] discriminatory open access transmission of this filing are on file with the BILLING CODE 6717±01±M

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2382 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices

DEPARTMENT OF ENERGY only those who file a motion to f. Location: The proposed recreation intervene in accordance with the facilities would be located in and near Federal Energy Regulatory Commission’s Rules may become a the Almanor Campground on the Commission party to the proceeding. Any comments, southwestern shore of Lake Almanor. protests, or motions to intervene must g. Filed Pursuant to: Federal Power Notice of Amendment of License be received on or before the specified Act, 16 U.S.C. § 791(a)–825(r). h. Applicant Contact: Bill Zemke, January 9, 1998. comment date for the particular application. Pacific Gas & Electric Company, Mail Take notice that the following Code N11C, P.O. Box 770000, San hydroelectric application has been filed C1. Filing and Service of Responsive Documents—Any filings must bear in Francisco, CA 94177, (415) 973–1646. with the Commission and is available i. FERC Contact: J.K. Hannula, (202) for public inspection: all capital letters the title ‘‘COMMENTS’’, 219–0116. a. Type of Application: Amendment j. Comment Date: March 4, 1998. of License. ‘‘RECOMMENDATIONS FOR TERMS AND CONDITIONS’’, ‘‘PROTEST’’, OR k. Description of the Application: PG b. Project No.: 2114–065. & E requests approval to permit the c. Date Filed: December 17, 1997. ‘‘MOTION TO INTERVENE’’, as applicable, and the Project Number of National Forest Service (FS) to d. Applicant: Public Utility District reconstruct a marina containing 45 slips No. 2 of Grant County, Washington. the particular application to which the filing refers. Any of the above-named and a boat launch at Almanor e. Name of Project: Priest Rapids Campground, Larsen National Forest. Project. documents must be filed by providing the original and the number of copies The FS also proposes to construct a new f. Location: On the Columbia River in parking area, boat launch, and day use Grant County, Washington. provided by the Commission’s regulations to: The Secretary, Federal beach area at the campground, and g. Filed Pursuant to: Federal Power paved fishing trails at the Canyon Dam Act, 16 U.S.C. § 791(a)–825(r). Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C. day use facility. h. Applicant Contact: Mr. Don 1. This notice also consists of the 20426. A copy of any motion to Godard, Public Utility District No. 2 of following standard paragraphs: B, C1, intervene must also be served upon each Grant County, P.O. Box 878, Ephrata, and D2. WA 98823, (509) 754–3451. representative of the Applicant B. Comments, Protests, or Motions to i. FERC Contact: Timothy Welch, specified in the particular application. Intervene—Anyone may submit D2. Agency Comments—Federal, (202) 219–2666. comments, a protest, or a motion to state, and local agencies are invited to j. Comment Date: January 28, 1998. intervene in accordance with the file comments on the described k. Description of Amendment: Grant requirements of Rules of Practice and application. A copy of the application County Public Utility District No. 2 Procedure, 18 CFR 385.210, .211, .214. may be obtained by agencies directly (licensee) requests authorization to In determining the appropriate action to from the Applicant. If an agency does install a spillway deflector at the take, the Commission will consider all not file comments within the time Wanapum Development for the passage protests or other comments filed, but specified for filing comments, it will be of downstream migrant fishes at only those who file a motion to presumed to have no comments. One Wanapum Dam. The deflector will be intervene in accordance with the copy of an agency’s comments must also constructed at Wanapum Dam Spillway Commission’s Rules may become a be sent to the Applicant’s 12 for the further development of a party to the proceeding. Any comments, representatives. device to reduce the level of dissolved protests, or motions to intervene must gases in the spilled water. A prototype Linwood A. Watson, Jr., be received on or before the specified spillway deflector was installed in Acting Secretary. comment date for the particular spillway bay 2 in the spring of 1996. [FR Doc. 98–987 Filed 1–14–98; 8:45 am] application. Based on the data collected in 1996, the BILLING CODE 6717±01±M C1. Filing and Service of Responsive prototype spillway deflector produced Documents—Any filings must bear in total dissolved gas levels of saturation all capital letters the title lower than water passing through spill DEPARTMENT OF ENERGY ‘‘COMMENTS’’, bays not equipped with the prototype ‘‘RECOMMENDATIONS FOR TERMS deflector. This second prototype Federal Energy Regulatory AND CONDITIONS’’, ‘‘PROTEST’’, OR deflector will consist of a triangular Commission ‘‘MOTION TO INTERVENE’’, as concrete section which is located 32 feet Notice of Non-Project Use of Project applicable, and the Project Number of below the crest of the spillway. The Lands (Development of Recreational the particular application to which the deflector’s horizontal surface will be Facilities) filing refers. Any of the above-named approximately 12 feet and will run the documents must be filed by providing full width of the spillway slot, January 9, 1998. the original and the number of copies approximately 50 feet. Take notice that the following provided by the Commission’s 1. This notice also consists of the hydroelectric application has been filed regulations to: The Secretary, Federal following standard paragraphs: B, C1, with the Commission and is available Energy Regulatory Commission, 888 and D2. for public inspection: First Street, N.E., Washington, D.C. B. Comments, Protests, or Motions to a. Type of Application: Non-Project 20426. A copy of any motion to Intervene—Anyone may submit Use of Project Lands (Development of intervene must also be served upon each comments, a protest, or a motion to Recreational Facilities). representative of the Applicant intervene in accordance with the b. Project No.: 2105–062. specified in the particular application. requirements of Rules of Practice and c. Date Filed: September 4, 1997. D2. Agency Comments—Federal, Procedure, 18 CFR 385.210, .211, .214. d. Applicant: Pacific Gas & Electric state, and local agencies are invited to In determining the appropriate action to Company (PG & E). file comments on the described take, the Commission will consider all e. Name of Project: Upper North Fork application. A copy of the application protests or other comments filed, but Feather River Project (Lake Almanor). may be obtained by agencies directly

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2383 from the Applicant. If an agency does B. Comments, Protests, or Motions to Order No. 0204–108, dated November not file comments within the time Intervene—Anyone may submit 10, 1993, has approved and placed in specified for filing comments, it will be comments, a protest, or a motion to effect on an interim basis Rate Order No. presumed to have no comments. One intervene in accordance with the SWPA–37 which provides for the copy of an agency’s comments must also requirements of Rules of Practice and following Integrated System Rate be sent to the Applicant’s Procedure, 18 CFR 385.210, .211, .214. Schedules: representatives. In determining the appropriate action to Rate Schedule P–98, Wholesale Rates for Linwood A. Watson, Jr., take, the Commission will consider all Hydro Peaking Power Acting Secretary. protests or other comments filed, but Rate Schedule NFTS–98, Wholesale Rates for [FR Doc. 98–988 Filed 1–14–98; 8:45 am] only those who file a motion to Point-to-Point and Network Transmission Service BILLING CODE 6717±01±M intervene in accordance with the Commission’s Rules may become a Rate Schedule EE–98, Wholesale Rate for party to the proceeding. Any comments, Excess Energy DEPARTMENT OF ENERGY protests, or motions to intervene must The rate schedules supersede the be received on or before the specified existing rate schedules shown below: Federal Energy Regulatory comment date for the particular Rate Schedule P–90A, Peaking Power— Commission application. (superseded by P–98) C1. Filing and Service of Responsive Rate Schedule P–90B, Peaking Power through Notice of Amendment of License Documents—Any filings must bear in Oklahoma Utility Companies and/or all capital letters the title Oklahoma Municipal Power Authority— January 9, 1998. ‘‘COMMENTS’’, (no longer applicable) Take notice that the following Rate Schedule F–90B, Firm Power through ‘‘RECOMMENDATIONS FOR TERMS hydroelectric application has been filed Oklahoma Utility Companies—(no longer AND CONDITIONS’’, ‘‘PROTEST’’, OR with the Commission and is available applicable) ‘‘MOTION TO INTERVENE’’, as for public inspection: Rate Schedule TDC–90, Transmission applicable, and the Project Number of a. Type of Application: Amendment Service—(superseded by NFTS–98) the particular application to which the Rate Schedule IC–90, Interruptible of License. filing refers. Any of the above-named Capacity—(no longer applicable) b. Project No.: 1025–020. documents must be filed by providing Rate Schedule EE–90, Excess Energy— c. Date Filed: December 23, 1997. (superseded by EE–98) d. Applicant: Safe Harbor Water the original and the number of copies DATES: Power Corporation. provided by the Commission’s The effective period for the rate e. Name of Project: Safe Harbor. regulations to: The Secretary, Federal schedules specified in Rate Order No. f. Location: On the Susquehanna Energy Regulatory Commission, 888 SWPA–37 is January 1, 1998, through River, in Lancaster County, First Street, N.E., Washington, D.C. September 30, 2001. Pennsylvania. 20426. A copy of any motion to FOR FURTHER INFORMATION CONTACT: g. Filed Pursuant to: Federal Power intervene must also be served upon each Forrest E. Reeves, Assistant Act, 16 U.S.C. 791(a)–825(r). representative of the Applicant Administrator, Office of Corporate h. Applicant Contact: Marshall J. specified in the particular application. Operations, Southwestern Power Kaiser, President, Safe Harbor Water D2. Agency Comments—Federal, Administration, Department of Energy, Power Corporation, One Powerhouse state, and local agencies are invited to P.O. Box 1619, Tulsa, Oklahoma 74101– Road, Conestoga, PA 17516–9651, (717) file comments on the described 1619. 872–5441. application. A copy of the application SUPPLEMENTARY INFORMATION: i. FERC Contact: James Hunter, (202) may be obtained by agencies directly Southwestern Power Administration’s 219–2839. from the Applicant. If an agency does (Southwestern) Administrator has j. Comment Date: February 27, 1998. not file comments within the time determined, based on the November k. Description of Application: The specified for filing comments, it will be 1997 Integrated System Current Power Applicant proposes to raise the normal presumed to have no comments. One Repayment Study, that existing rates maximum level of Safe Harbor reservoir copy of an agency’s comments must also will not satisfy cost recovery criteria by 0.8 feet, from elevation 227.2 feet to be sent to the Applicant’s specified in Department of Energy Order elevation 228.0 feet above mean sea representatives. No. RA 6120.2 and Section 5 of the level. Raising the elevation can be Linwood A. Watson, Jr., Flood Control Act of 1944. The accomplished operationally, and would Acting Secretary. Administrator prepared a November not require any modification to project [FR Doc. 98–990 Filed 1–14–98; 8:45 am] 1997 Integrated System Revised Power structures. BILLING CODE 6717±01±M Repayment Study based on additional The higher level would benefit the annual revenue of $1,805,772 beginning project by maximizing the operating January 1, 1998, which increases head and by providing 5,900 acre-feet of DEPARTMENT OF ENERGY ultimate annual revenues from additional usable storage capacity for $96,344,200 to $98,149,972, in part to energy generation, under the normal Southwestern Power Administration recover increases in Corps of Engineers daily peaking operation. The Applicant and Southwestern Federal investments. Integrated System RatesÐNotice of proposes to implement the increase in Southwestern has changed the rate Order Approving New Power Rates on reservoir elevation over several years, if structure to conform with the intent of an Interim Basis necessary, to minimize the potential the Federal Energy Regulatory effects of the increase on migrant AGENCY: Southwestern Power Commission’s (FERC) Order No. 888; shorebird usage of mudflat areas within Administration, DOE. consequently, the actual rate impact on the reservoir. ACTION: Notice of rate order, each customer will vary based on the 1. This notice also consists of the type of service requested and provided. following standard paragraphs: B, C1, SUMMARY: The Deputy Secretary acting Also, a credit, specifically designed for and D2. under Amendment No. 3 to Delegation each individual customer, will apply

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2384 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices against the purchased power adder in effect on a final basis, or to Rate Order SWPA–29, October 1, 1994– component of the rate schedules to disapprove power and transmission September 30, 1995 refund both excess revenues and rates. Amendment No. 1 to Delegation Rate Order SWPA–32, October 1, 1995– interest accruing on such revenues in September 30, 1996 Order No. 0204–108, effective May 30, Rate Order SWPA–34, October 1, 1996– the purchased power deferral account 1986, 51 FR 19744, revised the September 30, 1997 during recent years of favorable water delegation of authority to confirm, Rate Order SWPA–35, October 1, 1997– conditions. This credit is intended to approve and place into effect on an March 31, 1998 equalize the customer’s average interim basis power and transmission Southwestern’s November 1997 purchased power adder cost. These rates to the Under Secretary of Energy Current Power Repayment Study (PRS) credits will be provided to each rather than the Deputy Secretary of indicated that the existing rates would applicable customer over a 6-month Energy. This delegation was reassigned not satisfy present financial criteria service period beginning January 1, to the Deputy Secretary of Energy by regarding repayment of investment in a 1998. The customer specific credit, Department of Energy (DOE) Notice 50-year period due, in part, to along with the Administrator’s 1110.29, dated October 27, 1988, and increasing Corps of Engineers (Corps) discretionary purchased power adder clarified by Secretary of Energy Notice and Southwestern Federal investment. adjustment, will offset the immediate SEN–10–89, dated August 3, 1989, and The Revised PRS indicated that an impact of increasing the purchased subsequent revisions. By Amendment increase in annual revenues of power adder to 1.1 mills/kWh, except No. 2 to Delegation Order No. 0204–108, $1,805,772 was necessary beginning in for those customers to which the effective August 23, 1991, 56 FR 41835, FY 1998 to accomplish System purchased power adder does not the Secretary of the Department of repayment in the required number of currently apply. This rate proposal also Energy revised Delegation Order No. years. Accordingly, Southwestern includes a provision to continue and 0204–108 to delegate to the Assistant developed proposed System rate increase the Administrator’s Secretary, Conservation and Renewable schedules in the November 1997 Rate Discretionary Purchased Power Adder Energy, the authority which was Design Study based on that additional Adjustment, from up to $0.0005 to up to previously delegated to the Deputy revenue requirement. $0.0011 per kilowatthour as necessary, Secretary in that Delegation Order. By Title 10, Part 903, Subpart A of the and to adjust the purchased power Amendment No. 3 to Delegation Order Code of Federal Regulations, adder annually, at his/her discretion, No. 0204–108, effective November 10, ‘‘Procedures for Public Participation in under a formula-type rate, with 1993, 58 FR 59717, the Secretary of Power and Transmission Rate notification to FERC. Energy revised the delegation of Adjustment,’’ has been followed in Following review of Southwestern’s authority to confirm, approve and place proposal within the Department of connection with the proposed rate into effect on an interim basis power adjustments. More specifically, Energy, I approved, Rate Order No. and transmission rates by delegating SWPA–37, on an interim basis through opportunities for public review and that authority to the Deputy Secretary of comment on proposed System power September 30, 2001, or until confirmed Energy. This rate order is issued by the and approved on a final basis by FERC. rates during a 90-day period were Deputy Secretary pursuant to said announced by notice published in the Dated: January 7, 1998. Amendment to Delegation Order No. Federal Register August 22, 1997, (62 Elizabeth A. Moler, 0204–108. It is also made pursuant to FR 44670). A Public Information Forum Deputy Secretary. the authorities as implemented in 10 was held September 4, 1997, in Tulsa, CFR 903. Order Confirming, Approving and Oklahoma, and a Public Comment Placing Increased Power Rate in Effect Background Forum was held October 9, 1997, also in on an Interim Basis Tulsa. Written comments were due by FERC confirmation and approval of November 20, 1997. On August 25, [Rate Order No. SWPA–37] the following Integrated System 1997, Southwestern mailed a copy of January 1, 1998. (System) rate schedules was provided in the Federal Register Notice, making In the matter of: Southwestern Power FERC Docket No. EF90–4011–000 copies of the proposed rate schedules Administration System Rates issued September 18, 1991, for the and supporting data for the August 1997 Pursuant to Sections 302(a) and period October 1, 1990, through Power Repayment and Rate Design 301(b) of the Department of Energy September 30, 1994: Studies available to customers and Organization Act, Public Law 95–91, the Rate Schedule P–90A, Peaking Power— interested parties for review and functions of the Secretary of the Interior (superseded by P–98) comment during the formal period of and the Federal Power Commission Rate Schedule P–90B, Peaking Power through public participation. In addition, and under Section 5 of the Flood Control Oklahoma Utility Companies and/or prior to the formal 90-day public Act of 1944, 16 U.S.C. 825s, for the Oklahoma Municipal Power Authority— participation process, Southwestern (no longer applicable) Southwestern Power Administration Rate Schedule F–90B, Firm Power through held a number of informal meetings (Southwestern) were transferred to and Oklahoma Utility Companies— (no longer with customer representatives during vested in the Secretary of Energy. By applicable) preparation of the August 1997 Current Delegation Order No. 0204–108, Rate Schedule TDC–90, Transmission and Revised Power Repayment Studies effective December 14, 1983, 48 FR Service—(superseded by NFTS–98) and Rate Design Study. Southwestern 55664, the Secretary of Energy delegated Rate Schedule IC–90, Interruptible personnel met informally with to the Deputy Secretary of Energy on a Capacity—(no longer applicable) representatives of the Southwestern non-exclusive basis the authority to Rate Schedule EE–90, Excess Energy— Power Resources Association (an confirm, approve and place into effect (superseded by EE–98) organization representing many of on an interim basis power and These rate schedules were Southwestern’s customers) on four transmission rates, and delegated to the subsequently extended on an interim occasions and with the Oklahoma Federal Energy Regulatory Commission basis by the Deputy Secretary under the Municipal Power Authority (OMPA) (FERC) on an exclusive basis the Rate Order No. and for the periods listed member representatives once to explain authority to confirm, approve and place below: the studies, answer questions, and

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2385 consider comments and suggestions Corps implemented a new financial system based on the November 1997 Revised Power concerning development of the during FY 1996 within several of its district Repayment Study. proposed System rates. Further, offices and numerous problems developed 2. The Net Capacity or Energy Sales/ Southwestern staff met with specific during retrieval of the 1996 financial data Deliveries divisor on ancillary services was changed from the average 12 months’ customer representatives following the which significantly delayed preparation of financial statements and the financial audit. coincidental peak (CP) of the fifteen projects Public Information and Comment Southwestern incorporated the audited within Southwestern’s control area to the Forums to discuss the results of the financial data for FY 1996 in its November capacity sales (billing units) associated with August 1997 Current and Revised Power 1997 Power Repayment Studies. This audited the customers who are anticipated to be Repayment Studies and Rate Design financial data resulted in a decrease in the taking the ancillary services. Study and how the proposals impacted level of revenues needed. 3. The separate ancillary service charge for these customers directly. 2. Reduction in the level of Service Charges Energy Imbalance was deleted while the Following the conclusion of the due to resolution of a major power sales penalty provision for the service as proposed comment period in November 1997, contract. Southwestern had been involved in in the August 1997 Rate Design was retained. power sales contract negotiations with a 4. The calculation of the per MW cost for modifications to the August 1997 Power providing generation for the two ancillary Repayment and Rate Design Studies and major customer for some time. Upon successful negotiation of a new power sales services, (1) Operational Reserves-Spinning the proposed rate schedules were contract in August 1997, Southwestern and (2) Operational Reserves-Supplemental completed based on (1) Formal lowered its estimate of transmission service were revised to divide the projected comments received, (2) finalization of charges to correspond with revised generation expenses by the rated capacity of the FY 1996 Southwestern Federal anticipated rate levels. This change also the generation rather than the 12 CP value. Power System (SWFPS) financial audit, caused a decrease in the level of revenues 5. Switchyard costs on the transmission and (3) resolution of a major power sales needed. side of the Corps’ facilities that previously contract. The comments presented 3. Minor corrections to revenues to reflect were included in generation have been reassigned to transmission. during the formal public participation effective dates of contract changes and implementation of rates for new services for 6. Before allocating Transmission Expenses process were considered, responses to Transformation, the costs for the developed and, where deemed specific customers. The corrections had both increasing and decreasing impacts on the Scheduling, System Control and Dispatch appropriate, incorporated into the revenues needed. ancillary service have been removed. studies. Once all comments had been 4. Minor revisions to estimates of revenues 7. An energy transmission loss analysis carefully considered, the Administrator expected from facilities charges based on was completed and the energy loss made the decision to submit the revised recently updated projections of future percentage to be charged on transactions was (November 1997) rate proposal for individual customer transmission system reduced from 5 percent to 4 percent. Also, a determination was made to charge dollars for interim approval and implementation. usage. These revisions had both increasing losses, based on a formula described in Rate and decreasing impacts on the revenues Responses to major comments are Schedule NFTS–98, rather than have them needed also. contained herein. The proposed rate scheduled/repaid with energy. 5. Adjusted revenues to include customer- schedules resulting from these changes 8. Southwestern will be providing specific purchased power credits not are designed to increase total annual secondary service, ‘‘headroom,’’ under its identified in the August 1997 PRS due to the firm transmission service for both Federal revenues to a level sufficient to repay all unavailability of account data that and non-Federal power. costs by the 50th year. determines the level of participation for each 9. Southwestern will be offering Network individual customer. Analysis of the Discussion Integration Transmission Service. The charge individual customer account activity has for this service will be based on the The rate schedules proposed by been completed and specific purchased Southwestern for implementation calculation specified by FERC in its Order power revenue credits have been determined No. 888 for this type of service. increase ultimate annual revenue from for those participating customers to place all $96,344,200, to $98,149,972, or 1.9 such customers on an equal level. In review, Southwestern is filing a percent, which will satisfy cost recovery revised rate adjustment plan for two criteria outlined in Department of Not included in the above reasons. These reasons include the need Energy (DOE) Order No. RA 6120.2 and adjustments are additional issues for a minor increase in the annual Section 5 of the Flood Control Act of related to rate design. Southwestern has revenue requirements to satisfy cost 1944, by increasing annual net revenues redesigned its rates for transmission recovery criteria and also the by $1,805,772, beginning January 1, service in accordance with the intent of restructuring of rates to conform with 1998. This amount is less than the FERC Order No. 888 on open the intent of FERC Order Nos. 888 and revenue level initially proposed in transmission access. Most of the 888–A. The PRSs indicated that current August 1997 due to changes made to (1) comments, concerns and requests for revenue levels are insufficient, by Correct errors in the August study cited information have been related to approximately 1.9 percent, to repay the within comments received and noted by Southwestern’s proposed August 1997 Federal investment within the staff review; (2) reflect the results of the Rate Design and Rate Schedules, and in repayment period. That increased FY 1996 financial audit that had been particular, its charges for transmission requirement is due to increased delayed (due to the Corps of Engineer’s service. In consideration of comments investments for both the Corps of (Corps) switchover to a new financial and suggested improvements to its rate Engineers (Corps) hydroelectric projects management system); and (3) better design, Southwestern has made and Southwestern’s transmission system show the impacts of specific power numerous changes to both its rate facilities. Some of the factors causing sales contract provisions. The following design and rate schedules. The the Corps increases in project adjustments or corrections, which were following are changes made to investments include a finalization of the not included in the August 1997 Southwestern’s August 1997 Rate Stockton cost allocation study, and studies, lowered the level of increase Design and Rate Schedules: (The major rehabilitation of a few projects to needed: rationale for these changes is described correct identified problems. Also, major in Southwestern’s responses to major investments have been made in 1. Completion of the FY 1996 SWFPS comments section.) audit. This audit was not finalized until Southwestern’s aging transmission September 1997 due to numerous problems 1. The revenue requirement and facilities to sustain the reliability of the with Corps’ financial data for FY 1996. The transmission capacity sales were changed system. This filing represents the first

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2386 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices revenue change for the Integrated proposed an adjustment to Truman’s would be reallocated back to the System in seven years. The second allocated costs and reduced the hydropower purpose in an amount reason is the restructuring of repayable investment to an amount relational to the part of the hydropower Southwestern’s generation and equal to approximately 44 percent of purpose functioning as originally transmission rates and the development then-allocated costs, with the remaining designed. Southwestern does not of separate rates for ancillary services. amount to be deferred until the project anticipate finalization of the Truman This restructuring conforms with the can be operated as it was designed. cost allocation within the 1997 PRS cost intent of FERC Order Nos. 888 and 888– FERC approved this proposal as an evaluation period; therefore, A, and required a shift of certain costs acceptable interim measure while the Southwestern has continued to use the between generation and transmission to Corps develops a cost allocation for Interim Cost Allocation for the Truman provide for ancillary services and also to Truman based on actual operating project in development of the 1997 PRS. reassign generation costs associated conditions. Southwestern also proposed Purchased Power Deferral Account with Corps transmission-related this concept to the Corps, and the Corps (Credit and Adders) switchyard facilities to transmission. agreed to consider it as an option in The reassignment of costs will have developing the cost allocation for the In the 1988 and 1990 PRSs, varying financial impacts on project. Subsequently, the Corps has Southwestern implemented customer- Southwestern’s customers based on the completed a major revision to the specific purchased power credits to flow service requested and provided. Truman project cost allocation and has back over a fixed period deferred In Southwestern’s 1988 and again in utilized Southwestern’s proposed revenues and interest accrued on such the 1990 Rate Proposals, two concept for determining repayable revenues in such a way as to equalize noteworthy issues, which have investment at the project during the the average purchased power adder rate previously been approved by FERC were interim period until the project becomes per kilowatthour (kWh) paid by each described in detail. The two issues were fully operational. Although not yet customer. These credits remained in (1) the treatment of a portion of the approved on a final basis, the Interim effect through September 30, 1993, to Truman project investment as not Cost Allocation proposed by the Corps balance each customer’s average cost currently repayable, and (2) the for the Truman project has been utilized irrespective of the condition or balance development of customer-specific in the development of the 1990 PRSs of the Purchase Power Account credits to the Purchased Power Adder to and in the 1997 PRSs in support of the (Account), or the need for rate adjustment in the meantime. The refund excess revenues collected under revenue requirements of Southwestern’s customer-specific credits specified in Southwestern’s purchased power rate System and the rate proposal, as the the 1990 PRS, like the previous credits, component. most recent cost allocation available were insufficient to totally equalize the which reasonably reflects the level of Harry S. Truman Project average purchased power adder rate costs expected to be payable at the The Truman issue arose out of the paid by each customer. Changing Truman project during the cost limitations placed on the project’s interest rates, above average water evaluation period. operations by the Corps. The project conditions during the period which was designed and constructed to have During February 1997, the Interagency eliminated the need for estimated 160 MW of dependable (marketable) Committee on Cost Allocations (ICCA) average-year purchases, and different capacity through the use of six met to review and potentially approve rates for the credits over the credit reversible pump turbine generating the Truman, Stockton, and Clarence period kept the previous credits from units which could return water to the Cannon project cost allocations. The reaching the goal. Therefore, additional reservoir following normal generation, Stockton cost allocation was customer-specific adjustments are to mitigate extreme variations in water subsequently approved on a final basis needed to bring all participating available for generation and the lack of on May 8, 1997. The Clarence Cannon customers to the same level. It is storage capacity in the project (only two cost allocation was sent back to the important that the remaining revenues feet). Pumping ensures project Corps’ St. Louis District for a review of to be credited flow back over a short dependable capacity and allows the classification of a specific charge period to get all customers on the same marketing of all six units. A substantial and was to be returned to the ICCA for per kWh contribution basis. fish kill during testing of the units and final approval. The Truman cost Southwestern is proposing to flow back considerable opposition to the project’s allocation was to be sent back to the the deferred revenues and interest operation, both in the pumping mode Corps’ Kansas City District office to during the service period January 1, and the full six-unit generation mode, make changes in the allocation’s 1998, through June 30, 1998. However, led the Corps to significantly restrict the assumptions and then be prepared for to avoid the potential for making cash project’s operation. In particular, the finalization. However, in June 1997, a payments to customers in excess of project’s pumps may not be used and second meeting of the ICCA was held monthly charges, the rate schedules only a limited number of units may be with several customer representatives to again limit the amount of applicable utilized simultaneously. Consequently, discuss the Truman cost allocation. The credit in any month to the level of total Southwestern is unable to market full customers expressed their concern charges for Southwestern’s services capacity from the project and has about the significant level of costs being rendered for such month, and allow for declared only two units in commercial proposed while the project continued to any excess credit to be used in future operation. Southwestern proposed to be limited in its ability to produce billing periods. Amounts of revenue and FERC in the 1988 rate filing that, since hydropower. At this meeting, the Corps interest in the Account at any time are the entire project was neither revenue- agreed to review the issue of assigning System revenues, entirely within the producing, declared in commercial hydro-related costs to another project purview of Southwestern. No customer operation, nor expected to be in service purpose that had contributed to limiting is considered to have escrowed these within the then-existing cost evaluation the hydro operation of the project. The funds, nor to have any specific period, the total investment allocated to allocation of those costs to another entitlement or ownership right in power was not repayable under DOE or purpose would be potentially contributions to the Account or accrued FERC regulations. Southwestern further considered temporary and the costs interest, although Southwestern will

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2387 attempt to apply purchased power is the determination of the purchased Power Repayment Study (PRS), but $4.2 adders, and credits, on a basis power adder itself. Southwestern is million of this difference was due to reasonably proportional to applicable proposing, as in all previous proposals unforeseen and extraordinarily large customer purchases of peaking power beginning with the 1983 retirement losses which are not and energy. implementation of the purchased power projected by the Corps or Southwestern. During the time the purchased power rate component, that the adder be set The Corps O&M expenses before the adders and the accounting mechanism equal to the current average long-term retirement losses were $30.9 million, have been in place, they have proven to purchased power rate requirement. As less than 2 percent from the previous be effective in assuring that purchased shown in the Rate Design Study, the projection for FY 1996. Projections for power revenues equal purchased power amount is determined by dividing the Corps O&M are not developed by costs over time. The financial interests estimated total average direct purchased Southwestern, but are developed by the of the Government have been protected power costs by Southwestern’s total Corps and provided to Southwestern in this endeavor, and the rate annual contractual 1200-hour peaking annually. The Corps makes projections component has been adjusted as energy commitments to the customers using historical information and then necessary. In the 1988 and 1990 Rate (exclusive of contract support includes projections for large Proposals, Southwestern also requested arrangements). In this rate proposal, the maintenance items for each of the approval for the Administrator to have resulting Purchased Power Adder projects that have been included in their authority to adjust the purchased power (Adder) is $0.0011 per kWh of peaking outyear budget estimates. These rate component up to once annually, energy. The total revenue created projections are made in current year based on a formula-type rate included in through application of this Adder would dollars. Southwestern reviews this the rate schedules, by up to $0.0005 per enable Southwestern to cover its average information and adjusts the estimates to kWh at his or her discretion. The annual purchased power costs. future year dollars based on the Gross flexibility derived from this authority Comments and Responses Domestic Product Price Index projection enables Southwestern to react more to incorporate inflationary trends. quickly to significant changes in water The Southwestern Power Southwestern agrees that such costs conditions which may have occurred Administration (Southwestern) received should be prudently and timely during the preceding year or simply to numerous comments from customers incurred at reasonable levels consistent exercise better control on the amount of and interested parties from the public with maintaining the high level of revenue in the Account and to better participation process. The issues reliability required in the utility identified in these comments were given limit the over or under recoveries of industry. Historically, the estimates that careful and thorough consideration and, revenue. The Administrator utilized this the Corps provides have been where deemed appropriate, solutions authority in December 1993, 1994, 1995, reasonably accurate in total, although were developed and incorporated into and 1996 to implement adjustments of they fluctuate from actual expenditures Southwestern’s final rate proposal, as up to $0.0005 per kWh additional credit by individual project. The Corps noted in the earlier Discussion section. to help reduce excess revenues collected believes that its internal controls, A summary of major comments and in the Account during the previous accounting system reviews, and funding Southwestern’s responses to the issues years of good water conditions and the procedures effectively provide the raised in them follows: corresponding reduced need for needed level of justification, purchased power. This authority seems Corps O&M Expenses consistency, and control of its O&M to remain appropriate, particularly in expenditures. light of the fact that the Account has no Comment: Southwestern’s updated direct effect on System repayment revenue requirement projections based Southwestern agrees that a reduction requirements and the separate rate on audited financial statements for the in Corps O&M expenditures would help component serves to provide revenues FY 1996 indicate that Corps of in reducing the upward pressure on to meet expected costs which, if they do Engineer’s (Corps) Operation & rates. However, the Corps O&M not come to pass, are either held to meet Maintenance (O&M) expenses for 1996 expenditures have been quite stable for future costs or result in a lower were approximately $4,900,000 less most of the last ten years. There is no purchased power rate for customers. than estimated by Southwestern in its indication by the Corps that O&M costs However, experience has shown revenue requirements projection. will be increasing significantly, but Southwestern that the $0.0005 per kWh However, Southwestern did not revise future PRSs will reflect any such trend. adjustment level does not provide its Corps O&M projection. It appears It is true that Corps O&M expenditures significant impact to the Account that Corps O&M expenditures are are a significant percentage of the cost especially during times of widely increasing as compared to historical of hydropower; but, considering the fluctuating water conditions. Therefore, levels, while Southwestern is reducing level of Corps power investment on the Southwestern’s Administrator requests its expenditures. Corps O&M financial statements, this percentage continuing authority to adjust the expenditures are approximately 30 does not appear to be out of line. purchased power rate component percent of the cost of Southwestern Southwestern will continue to monitor annually based on a formula-type rate hydropower. Reductions in Corps O&M the Corps estimates of O&M expenses to included in the rate schedules, but expenditures will reduce upward rate assure the estimates are reasonably increasing his/her authority up to pressure on Southwestern’s rates. When comparable to actual expenses as noted $0.0011 per kWh, an increase of $0.0006 Southwestern modifies rates in FY 2001, on each year’s financial statements. per kWh, as he/she determines it should consider reducing the Corps Southwestern completes repayment necessary, to provide better control over O&M expense to reflect actual expenses reviews each year and will include the amount of revenue in the Account in 1996, 1997 and 1998. actual expenses for the latest historical and to provide greater flexibility in Response: Southwestern agrees that year available in its review. When limiting the over and under recoveries the audited financial statements for FY Southwestern modifies rates in FY 2001, of revenue. 1996 Corps O&M expense were it will incorporate actual Corps O&M An element directly related to the approximately $4.9 million less than expenses for FY 1997, FY 1998, FY 1999 Account and accrual of interest thereto Southwestern estimated in the 1996 and FY 2000.

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Accelerated Repayment the water conditions and the volume of established, at least in part, (1) to Comment: Footnotes in the sales which they experience. From the provide some protection for the Southwestern PRS indicate that beginning, the U.S. Congress recognized financial integrity and stability of the Southwestern plans in this PRS to repay that marketable energy in a PMAs, including Southwestern, which debt faster than required by its loan hydroelectric system would vary from must assure recovery of all annual costs obligations. Southwestern should not year to year with fluctuations in and repayment of investment from repay its Federal obligations any faster available water. The Congress agreed revenues based on hydroelectric power than required for purposes of that, in order to produce a stable rate generation under highly variable water establishing cost of service and rates. structure, repayment plans which are conditions, and (2) to provide a Southwestern should use amortization based on average water conditions are a stabilizing effect on hydroelectric power and interest expenses that do not exceed reasonable approach. This model rates to minimize the need for more what is required to repay loan permits Southwestern to apply a stable numerous and potentially larger rate over a period of years, regardless of increases caused by a single year or obligations. Response: The footnote in actual water conditions. In above- event. While it is true that a five-year Southwestern’s PRS indicates that average water years, the rate model cost evaluation period is not required, historical water conditions have been recovers more capital which balances Southwestern has utilized it above average allowing for increased poorer returns during below average consistently, and it serves as a sales and amortization; however, this water years. ‘‘reasonable’’ period over which During most of the past ten years, PRS indicates that, even with above Southwestern can project future events Southwestern has experienced above and costs. This repayment methodology average water conditions, current rates average water conditions; therefore, has been used consistently through are insufficient to meet repayment Southwestern has returned more funds Southwestern’s history, and the FERC criteria for the System. Southwestern’s to the U.S. Treasury than had been has supported the process through its rate adjustment plan in the FY 1997 PRS planned. The Flood Control Act of 1944 approval of past rate adjustments. does not accelerate repayment of the requires that: ‘‘All moneys received Southwestern’s customers’ concerns Federal investment. The comment’s from such sales shall be deposited in the that would warrant pursuing a phased- reference to loan obligations is actually Treasury of the United States as in rate increase at this time have been the repayment of the Federal miscellaneous receipts.’’ All revenues carefully considered. Southwestern is investment. Each year’s investment at from sales of power and energy and faced with certain statutory (the Flood each project is treated as a separate non-Federal transmission are returned Control Act of 1944) and regulatory repayment obligation with a specific to the Treasury. Revenues that exceed (DOE Order No. RA 6120.2) term and interest rate. Southwestern’s expenditures for a particular year are requirements which limit the latitude repayment policy is set forth in DOE credited to the repayment of investment. the Administrator can exercise in setting Order No. RA 6120.2. Section 8.c.(3) of Revenues credited to repayment of the the cost-based rates. Southwestern that Order states: ‘‘To the extent Federal investment during the past ten remains committed to the continued possible, while still complying with the years have enabled Southwestern to financial integrity and stability of its repayment periods established for each maintain stable rates since 1992. As a System through the development of increment of investment and unless rate increase of 1.9 percent is needed, regular annual PRSs based upon otherwise indicated by legislation, the Current PRS reflects that the 1997 average-water-year conditions and on amortization of the investment will be rate adjustment plan, with existing the implementation of rate increases, as accompanied by application to the rates, is insufficient to meet anticipated needed, in accordance with such legal highest interest-bearing investment repayment obligations. and regulatory requirements. This first.’’ The policy is based on Section 5 process has been strongly supported in FY 2001 Test Year of the Flood Control Act of 1944 (Flood recent years by customers and customer Control Act) which requires that power Comment: Industry accepted practice organizations. The stepped-in rate and energy from Federal projects be is to raise rates when there is a clear approved in 1990 was a one-time phase- marketed, ‘‘* * * at the lowest possible need to raise them. There does not in approach that was intended as a rates to consumers consistent with appear to be information that supports reasonable accommodation to customer sound business principles * * *.’’ Southwestern’s need to increase its rates concerns regarding a single 14.4 percent Amortization of the capital investment before FY 2001. Typically, electric increase. At that time, there was a is required by the Flood Control Act to utilities use one of three methods to unique situation regarding Corps O&M be accomplished, ‘‘* * * over a establish a test year. The test year costs and confusion over Corps policy reasonable period of years * * *.’’ This selection methods include (1) Historical, regarding preventive and breakdown period has been determined by Order based on actual results of a previous maintenance as well as inconsistency in No. RA 6120.2 to be within 50 years year; (2) projected, based on the same anticipated funding level restrictions. from the date of commercial service for year the rates are established; or (3) The level of the rate adjustment in this the hydroelectric projects and to be combination of actual and projected rate filing, 1.9 percent, is minor in its shorter periods for transmission and data. Southwestern does not need a rate application to rates, and Southwestern replacement investments based on their increase until the year 2001. It would be does not have a compelling reason to service lives. consistent with past precedent to phase it in. Southwestern sets its rates based on develop steps to these rates or Some customers are impacted at a rate average year water conditions. implement them for a test year in 1998. greater than 1.9 percent, primarily due Southwestern’s PRSs reflect the rate Response: The existing repayment to rate restructuring. Such restructuring adjustment plan based on average study methodology prescribed by DOE stems from Southwestern’s requirement hydrologic conditions. The repayment Order No. RA 6120.2 advocates a cost to conform to the intent of FERC Order system permits the Power Marketing evaluation period (CEP) that is No. 888. However, an analysis of the Administrations (PMAs) to vary the ‘‘normally 5 years’’ to project future data indicates that the shift in amount of capital returned to the costs and revenues to reflect changing Southwestern’s expense patterns from Treasury from year to year, reflecting conditions. That methodology was generation-related costs, which have

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In addition, with all the from SWPA’s Integrated System or use changes in the electric industry, this is any of SWPA’s transmission facilities, to Other issues are discussed in the considered a ‘‘sound business pay for their hydro power purchases Administrator’s Record of Decision. principle’’ in that it reduces under a bundled rate that includes Southwestern’s financial risk (albeit, transmission and a charge for Availability of Information only slightly) of repaying its Federal scheduling and reactive power services Information regarding this rate investment in a timely manner. is contrary to Order No. 888 and will not be approved by FERC. proposal including studies, comments Losses Response: Southwestern’s sale of and other supporting material, is available for public review and Comment: Capacity losses are Federal power and energy are based on comment in the offices of Southwestern approximately 2.8% of total peaking a ‘‘postage-stamp’’ type rate, which is Power Administration, One West Third and firm capacity. Losses and station based on the financial integration of all Street, Tulsa, OK 74101. services are approximately 3.3% of total the projects marketed under the energy resources available for sale. Integrated System, as well as various Administrator’s Certification Typically demand losses are greater components of Southwestern’s than energy losses, stated on a transmission system. The capacity rate The November 1997 Revised Power percentage basis. Station service should for all Federal power customers Repayment Study indicates that the not be included as energy losses; only includes a transmission component and increased power rates will repay all losses that occur on the transmission the two required ancillary services. This costs of the Integrated System including system should be considered when rate has been set to assure that amortization of the power investment calculating transmission losses. Request Southwestern charges itself the same consistent with the provisions of Southwestern prepare a transmission rates it charges for the use of the Department of Energy Order No. RA loss study. Transmission loss rates for transmission system for wheeling non- 6120.2. In accordance with Section 1 of transmission customers should be Federal power. The customers which Delegation Order No. 0204–108, as established and updated each year. 5% receive the output of Corps projects that amended November 10, 1993, 58 FR power factor losses are higher than are presently electrically isolated from 59717, and Section 5 of the Flood surrounding control areas. Anything Southwestern’s primary interconnected Control Act of 1944, the Administrator over 3% must be justified by a loss system requested integration of such has determined that the proposed study. projects into the Integrated System to System rates are consistent with receive that system’s benefits, including applicable law and the lowest possible Response: The percentages used in lower costs. In addition, such customers the above comment are believed to have rates consistent with sound business receive a number of benefits from their principles. been developed from numbers in the project sales which other Federal 1997 PRS and were based on customers do not, such as overload Environment Southwestern’s Load Resource Study capacity, condensing, greater scheduling The environmental impact of the which, for simplicity, combines losses flexibility, and exclusion from paying and station service to show total energy the Purchased Power Adder. proposed System rates was evaluated in usage. Southwestern recently performed Additionally, such projects also include consideration of DOE’s guidelines for a transmission loss study. Station components of Southwestern’s implementing the procedural provisions service was not included in our loss transmission system and switchyard of the National Environmental Policy study. Only losses that occur on the facilities used to deliver power and Act and was determined to fall within transmission system were considered in energy from the dams. In addition, the class of actions that are categorically the calculation of transmission losses in revenues from all sales within the excluded from the requirements of the loss study. Southwestern’s loss Integrated System are applied toward preparing either an Environmental study indicates that Southwestern’s loss repayment of all Federal investment for Impact Statement or an Environmental percentage is approximately 4 percent. all projects, regardless of their electrical Assessment. Consequently, Southwestern has integration status. Order reduced the loss percentage from 5 Southwestern is not required by FERC percent to 4 percent for real power Order No. 888 to offer unbundled In view of the foregoing and pursuant losses and included that figure in its services to its customers. Section 5 of to the authority delegated to me by the rate schedules. Southwestern will also the Flood Control Act of 1944 sets forth Secretary of Energy, I hereby confirm, begin charging for losses, as compared the statutory requirements for the sale approve and place in effect on an to its previous practice of requiring and delivery of Federal power and interim basis, effective January 1, 1998, losses to be scheduled as energy. energy. Based on DOE policy, ‘‘each of the following Southwestern System Rate Isolated Projects and Bundled Rates the PMAs that own transmission Schedules which shall remain in effect facilities will publish generally on an interim basis through September Comments: Isolated projects should applicable open access wholesale 30, 2001, or until the FERC confirms not be required to pay for transmission transmission tariffs and will take service and approves the rates on a final basis. and ancillary services that they do not itself under such tariffs. The tariffs will Dated: January 7, 1998. use. Isolated projects should receive include rates, terms, and conditions, credit for incurring costs that the typical and will offer transmission services, Elizabeth A. Moler, Southwestern customer does not. It is including ancillary services, to all Deputy Secretary. not appropriate to charge ancillary entities eligible to seek a transmission [FR Doc. 98–1060 Filed 1–14–98; 8:45 am] services for isolated project power. order under section 211 of the Federal BILLING CODE 6450±01±P

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DEPARTMENT OF ENERGY and the Federal Power Commission of water per second from Town Bluff under Section 5 of the Flood Control Dam for its own use. Power was Southwestern Power Administration Act of 1944, 16 U.S.C. 825s, for the legislatively authorized at the project, Southwestern Power Administration but installation of hydroelectric Robert Douglas Willis Hydro Power (Southwestern) were transferred to and facilities was deferred until justified by Rate Approving a Power Rate Increase vested in the Secretary of Energy. By economic conditions. A determination on an Interim Basis Delegation Order No. 0204–108, of feasibility was made in a 1982 Corps AGENCY: Southwestern Power effective December 14, 1983, 48 FR study. In 1983 the Sam Rayburn Administration, DOE. 55664, the Secretary of Energy delegated Municipal Power Agency (SRMA) to the Deputy Secretary of Energy on a ACTION: Notice of rate order. proposed to sponsor and finance the non-exclusive basis the authority to development of hydropower at Town SUMMARY: The Deputy Secretary acting confirm, approve and place into effect Bluff Dam in return for the output of the under Amendment No. 3 to Delegation on an interim basis power and project to be delivered to its member Order No. 0204–108, dated November transmission rates, and delegated to the municipalities and participating 10, 1993, has approved Rate Order No. Federal Energy Regulatory Commission member cooperatives of the Sam SWPA–36 which increases the power (FERC) on an exclusive basis the Rayburn Dam Electric Cooperative. rate for the Robert Douglas Willis Hydro authority to confirm, approve and place Since the hydroelectric facilities at the Project. This is an interim approval of in effect on a final basis, or to Town Bluff Dam have been completed, the rate effective January 1, 1998, disapprove power and transmission the facilities have been renamed the through September 30, 2001. rates. Amendment No. 1 to Delegation Robert Douglas Willis Hydropower FOR FURTHER INFORMATION CONTACT: Order No. 0204–108, effective May 30, Project (Robert D. Willis). Forrest E. Reeves, Assistant 1986, 51 FR 19744, revised the The Robert D. Willis rate is unique in Administrator, Office of Corporate delegation of authority to confirm, that it excludes the costs associated Operations, Southwestern Power approve and place into effect on an with the hydropower design and Administration, Department of Energy, interim basis power and transmission construction performed by the Corps, rates to the Under Secretary of Energy P.O. Box 1619, Tulsa, Oklahoma 74101– because all funds for these costs were rather than the Deputy Secretary of 1619. provided by SRMA. Under the Energy. This delegation was reassigned SUPPLEMENTARY INFORMATION: The Southwestern/SRMA power sales to the Deputy Secretary of Energy by Contract No. DE–PM75–85SW00117, existing rate for the Robert Douglas Department of Energy (DOE) Notice Willis Hydro Project is $266,928 per SRMA will continue to pay all annual 1110.29, dated October 27, 1988, and operating and marketing costs, as well year. The rate was approved on a final clarified by Secretary of Energy Notice as expected capital replacement costs, basis by the Federal Energy Regulatory SEN–10–89, dated August 3, 1989, and through the rate paid to Southwestern, Commission on January 28, 1997, for a subsequent revisions. By Amendment and will receive all power and energy period ending September 30, 2000. No. 2 to Delegation Order No. 0204–108, produced at the project for a period of On September 24, 1997, the effective August 23, 1991, 56 FR 41835, 50 years. Southwestern Power Administration the Secretary of the Department of (Southwestern) published notice in the Energy revised Delegation Order No. Discussion Federal Register, 62 FR 49976 of its 0204–108 to delegate to the Assistant proposed rate increase for the Robert Secretary, Conservation and Renewable The 1997 Current Robert D. Willis Douglas Willis Hydro Project and to Energy, the authority which was Power Repayment Study (PRS) tests the provide a 45-day comment period. One previously delegated to the Deputy adequacy of the existing rate based on comment indicating no objection to the Secretary in that Delegation Order. By the evaluation period extending from proposed rate increase was received Amendment No. 3 to Delegation Order FY 1997 through FY 2001, to recover from the sole customer, Sam Rayburn No. 0204–108, effective November 10, annual expenses for marketing, Municipal Power Agency. 1993, 58 FR 59717, the Secretary of operation and maintenance, and to Following review of Southwestern’s Energy revised the delegation of amortize additions to plant and major proposal within the Department of authority to confirm, approve and place replacements of the generating facilities. Energy, I approved, Rate Order No. into effect on an interim basis power Since the project’s design and SWPA–36, which increases the existing and transmission rates by delegating construction were financed in their Robert Douglas Willis Rate to $302,928 that authority to the Deputy Secretary of entirety by SRMA, no component for per year for the period January 1, 1998, Energy. This rate order is issued by the amortization of the original investment through September 30, 2001. Deputy Secretary pursuant to said of some $18 million is included in the Dated: January 7, 1998. Amendment to Delegation Order No. rate determination. The Current PRS for the Robert D. Willis project, using the Elizabeth A. Moler, 0204–108. existing annual rate of $266,928, Deputy Secretary. Background indicates that the legal requirements to Order Confirming, Approving and Dam B (Town Bluff Dam), located on repay all costs will not be met and an Placing Increased Power Rate in Effect the Neches River in eastern Texas increase in revenue is necessary. The on an Interim Basis downstream from the Sam Rayburn additional revenue needed is, in part, a result of the increase in replacement Rate Order No. SWPA–36 Dam, was originally constructed in 1951 by the U.S. Army Corps of Engineers costs required to be recovered. In January 1, 1998. (Corps) and provides streamflow addition, the Corps had projected a In the matter of: Southwestern Power regulation of releases from the Sam significant increase in its estimates of Administration—Robert D. Willis Rayburn Dam. The Lower Neches Valley operations and maintenance (O&M) Pursuant to Sections 302(a) and Authority contributed funds toward costs for the Robert D. Willis project. 301(b) of the Department of Energy construction of both projects and makes The previous year’s O&M projections Organization Act, Public Law 95–91, the established annual payments for the were considered by the Corps to have functions of the Secretary of the Interior right to withdraw up to 2000 cubic feet been understated.

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The existing annual Robert D. Willis with applicable law and is the lowest Council will consider recommendations project power rate of $266,928 was possible rate consistent with sound to forward directly to EPA. confirmed and approved on a final basis business principles. Because membership on this group by the FERC on January 28, 1997, for the will be limited and must be Environment period October 1, 1996, through representative of balanced views, September 30, 2000. The 1997 Robert D. The environmental impact of the rate selections will be made by the Director, Willis Current Power Repayment Study increase proposal was evaluated in Office of Ground Water and Drinking (PRS) indicates that the present rate consideration of DOE’s guidelines for Water, based on drinking water does not meet the cost recovery criteria implementing the procedural provisions expertise and demonstrated interest in for the isolated project. Over the entire of the National Environmental Policy drinking water policy. Any interested repayment period the current rate will Act and was determined to fall within person or organization may suggest an underpay requirements by $13,310,053. the class of actions that are categorically individual for a position on this The 1997 Robert D. Willis Revised PRS excluded from the requirements of working group. Candidates should be indicates that an annual rate of $302,928 preparing either an Environmental identified by name, occupation, will satisfy repayment criteria in Impact Statement or an Environmental position, address and telephone accordance with Department of Energy Assessment. number. Order No. RA 6120.2 and Section 5 of Order Persons selected for membership are the Flood Control Act of 1944. The responsible for any expenses that would proposed increase in revenue amounts In view of the foregoing and pursuant be incurred while attending meetings. to $36,000 or 13.5 percent annually to to the authority delegated to me by the Suggestions should be submitted to begin January 1, 1998. The proposed Secretary of Energy, I hereby confirm, Charlene E. Shaw, Designated Federal rate of $302,928 annually would satisfy approve and place in effect on an Officer, National Drinking Water the present repayment criteria. interim basis, effective January 1, 1998, Advisory Council, U.S. Environmental Pursuant to Title 10, Part 903, Subpart the proposed annual rate of $302,928 for Protection Agency, Office of Ground A of the Code of Federal Regulations (10 the sale of power and energy from the Water and Drinking Water (4601), 401 M CFR 903), ‘‘Procedures for Public Robert D. Willis project to the Sam Street, SW, Washington, D.C. 20460, no Participation in Power and Rayburn Municipal Power Agency, later than January 28, 1998. Transmission Rate Adjustments and under Contract No. DE–PM75– The Agency will not formally Extensions’’, 50 FR 37837, the 85SW00117, as amended. The rate shall acknowledge or respond to Administrator, Southwestern, published remain in effect on an interim basis nominations. E-Mail your questions to notice in the Federal Register (62 FR through September 30, 2001, or until the [email protected] or call 49976), on September 24, 1997, FERC confirms and approves the rate on 202–260–2285. announcing a 45-day period for public a final basis. review and comment. Southwestern Dated: January 9, 1998. Dated: January 7, 1998. held informal meetings and a Public Elizabeth Fellows, Information Forum on October 2, 1997, Elizabeth A. Moler, Acting Director, Office of Ground Water and where Southwestern provided copies of Deputy Secretary. Drinking Water. supporting data for the 1997 Robert D. [FR Doc. 98–1059 Filed 1–14–98; 8:45 am] [FR Doc. 98–1073 Filed 1–14–98; 8:45 am] Willis PRS to interested parties. A letter BILLING CODE 6450±01±P BILLING CODE 6560±50±P was received on behalf of SRMA, indicating no opposition to the ENVIRONMENTAL PROTECTION proposed rate increase. Southwestern ENVIRONMENTAL PROTECTION AGENCY did not receive any request to convene AGENCY a formal Public Comment Forum and, as a result, did not convene such a [FRL±5950±2] [FRL±5950±3] meeting. Information regarding this rate proposal, including studies, comments National Drinking Water Advisory National Drinking Water Advisory and other supporting material, is Council; Request for Nominations Council; Notice of Open Meetings available for public review and comment in the offices of the The Environmental Protection Agency Under section 10(a)(2) of Public Law Southwestern Power Administration, (EPA) invites all interested persons to 92–423, ‘‘The Federal Advisory One West Third Street, Tulsa, Oklahoma suggest individuals to serve as members Committee Act,’’ notice is hereby given 74103. of a working group that will be formed that a meeting of the National Drinking to provide advice to the National Water Advisory Council established Administrator’s Certification Drinking Water Advisory Council on under the Safe Drinking Water Act, as The 1997 Revised Robert D. Willis how the new Safe Drinking Water Act amended (42 U.S.C. S300f et seq.), will PRS indicates that the annual power approach to benefits and costs should be be held on February 2, 1998, from 1:00 rate of $302,928 will repay all costs of implemented in the decision making p.m. until 4:00 p.m., in Room 1209 East the project including amortization of process. The Council was established to Tower, U.S. Environmental Protection additions to plant and major provide practical and independent Agency (EPA) Headquarters, 401 M replacements of the generating facilities advice, consultation, and Street SW, Washington, D.C. 20460. consistent with provisions of DOE Order recommendations to the Agency on the Council members will be participating No. RA 6120.2. In accordance with activities, functions and policies related by Conference Call. The meeting is open Section 1 of Delegation Order No. 0204– to the Act as amended. At the October to the public, but due to past 108, as amended November 10, 1993, 58 15 and 16, 1997, meeting of the Council, experience, seating will be limited. FR 59717, and Section 5 of the Flood it was decided that a working group The purpose of this meeting is to Control Act of 1944, the Administrator should be formed to provide this provide the Council with the has determined that the proposed specific input. Following reports from recommendations of the Occurrence and Robert D. Willis power rate is consistent the working group, the Advisory Contaminant Selection Working Group

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2392 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices on the Final Drinking Water the OMB control numbers and LATA association and connected Contaminant Candidate List. expiration dates should be directed to modifications of LATA boundaries The meeting is open to the public. Jerry Cowden, Federal Communications should be granted. The Council encourages the hearing of Commission, (202) 418–0447. Federal Communications Commission. outside statements and will allocate Federal Communications Commission Magalie Roman Salas, one-half hour for this purpose. Oral Secretary. statements will be limited to five OMB Control No.: 3060–0782. minutes, and it is preferred that only Expiration Date: 1/31/2001. [FR Doc. 98–970 Filed 1–14–98; 8:45 am] one person present the statement. Any Title: Petitions for Limited BILLING CODE 6712±01±P outside parties interested in presenting Modification of LATA Boundaries to an oral statement should petition the Provide Expanded Local Calling Service Council by telephone at (202) 260-2285 (ELCS) at Various Locations. FEDERAL ELECTION COMMISSION before January 28, 1998. Form Number: Not applicable. Estimated Annual Burden: 800 hours; Any person who wishes to file a Sunshine Act Meeting written statement can do so before or 8 hours per response; 20 respondents. Description: The Commission has after a Council meeting. Written provided voluntary guidelines for filing AGENCY: Federal Election Commission. statements received prior to the meeting expanded local calling service requests. The Commission voted to hold a will be distributed to all members of the The guidelines ask that each ELCS meeting closed to the public on Council before any final discussion or request include the following Thursday, January 8, 1998, pursuant to vote is completed. Any statements information: (1) Type of proposed 11 CFR 2.7(d) (1) and (2), ‘‘that received after the meeting will become service; (2) direction of proposed Commission business so requires and part of the permanent meeting file and service; (3) telephone exchange that no earlier announcement of the will be forwarded to the Council involved; (4) names of affected carriers; change was possible.’’ members for their information. (5) state commission approval; (6) Members of the public that would like DATE AND TIME: Wednesday, January 21, number of access lines or customers; (7) to attend the meeting, present an oral 1998 at 10:00 a.m. usage data; (8) poll results if any; (9) statement, or submit a written community of interest statement; (10) a PLACE: 999 E Street NW., Washington, statement, should contact Ms. Charlene map showing exchanges and LATA DC. Shaw, Designated Federal Officer, boundary involved; and (11) any other National Drinking Water Advisory STATUS: This meeting will be closed to pertinent information. These guidelines Council, U.S. EPA, Office of Ground the public. will allow the Commission to conduct Water and Drinking Water (4601), 401 M ITEMS TO BE DISCUSSED: smooth and continuous processing of Street SW, Washington, D.C. 20460. The these requests. The collection of Compliance matters pursuant to 2 telephone number is Area Code (202) information will enable the Commission U.S.C. 437g. 260–2285 or E-Mail to determine if there is a public need for [email protected]. Audits conducted pursuant to 2 expanded local calling service in each U.S.C. 437g, § 438(b), and Title 26, Dated: January 9, 1998. area subject to the request. U.S.C. Elizabeth Fellows, OMB Control No.: 3060–0786. Matters concerning participation in Expiration Date: 1/31/2001. Acting Director, Office of Ground Water and civil actions or proceedings or Drinking Water. Title: Petitions for LATA Association arbitration. [FR Doc. 98–1072 Filed 1–14–98; 8:45 am] Changes by Independent Telephone Internal personnel rules and BILLING CODE 6560±50±P Companies. Form Number: Not applicable. procedures or matters affecting a Estimated Annual Burden: 120 hours; particular employee. FEDERAL COMMUNICATIONS 6 hours per respondent; 20 respondents. DATE & TIME: Thursday, January 22, 1998 Description: The Commission has COMMISSION at 10:00 a.m. provided voluntary guidelines for filing PLACE: 999 E Street NW., Washington, Public Information Collection(s) LATA association change requests. The DC (Ninth Floor). Approved by Office of Management guidelines ask that each LATA and Budget association change request include the STATUS: This meeting will be open to the following information: (1) Type of public. January 7, 1998. request; (2) exchange information; (3) ITEMS TO BE DISCUSSED: The Federal Communications number of access lines or customers; (4) Commission (FCC) has received Office public interest statement; (5) a map Correction and Approval of Minutes. of Management and Budget (OMB) showing exchanges and LATA Advisory Opinion 1997–26: approval for the following public boundaries involved; (6) a list of Association of Metropolitan Sewage information collection(s) pursuant to the extended local calling service (ELCS) Agencies by counsel, Herbert E. Marks Paperwork Reduction Act of 1995, Pub. routes between the independent and Brian J. McHugh. L. 96–511. An agency may not conduct exchange and the LATA with which it Audit: San Diego Host Committee/Sail or sponsor a collection of information is currently associated; and (7) a BOC to Victory ’96 (continued from meeting unless it displays a currently valid supplement requesting a modification of of December 4, 1997). control number. Notwithstanding any the LATA boundary. The requested other provisions of law, no person shall information will be used by the Audit: Committee on Arrangements be subject to any penalty for failing to Commission to determine whether the for the 1996 Republican National comply with a collection of information need for the proposed changes in LATA Convention (continued from meeting of subject to the Paperwork Reduction Act association outweighs the risk of December 4, 1997). (PRA) that does not display a valid potential anticompetitive effects, and Senior Level (SL) Pay System. control number. Questions concerning thus whether requests for changes in Administrative Matters.

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PERSON TO CONTACT FOR INFORMATION: FEDERAL MARITIME COMMISSION 1. Neal C. Needham, Anna, Illinois; to Mr. Ron Harris, Press Officer, acquire additional voting shares of First Telephone: (202) 219–4155. Ocean Freight Forwarder License State Bank of Dongola, Dongola, Illinois. Applicants Marjorie W. Emmons, Board of Governors of the Federal Reserve System, January 12, 1998. Secretary of the Commission. Notice is hereby given that the Jennifer J. Johnson, [FR Doc. 98–1169 Filed 1–13–98; 2:28 pm] following applicants have filed with the Deputy Secretary of the Board. BILLING CODE 6715±01±M Federal Maritime Commission applications for licenses as ocean freight [FR Doc. 98–1077 Filed 1–14–98; 8:45 am] forwarders pursuant to section 19 of the BILLING CODE 6210±01±F Shipping Act of 1984 (46 U.S.C. app. FEDERAL MARITIME COMMISSION 1718 and 46 CFR 510). Persons knowing of any reason why FEDERAL RESERVE SYSTEM Notice of Agreement(s) Filed any of the following applicants should Formations of, Acquisitions by, and not receive a license are requested to Mergers of Bank Holding Companies The Commission hereby gives notice contact the Office of Freight Forwarders, of the filing of the following Federal Maritime Commission, The companies listed in this notice agreement(s) under the Shipping Act of Washington, DC 20573. have applied to the Board for approval, 1984. International Forwarding and Logistics, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) Interested parties can review or obtain Inc., 2653 Veneer Street, Charleston, SC 29405, Officer: Leslie M. Leben, (BHC Act), Regulation Y (12 CFR Part copies of agreements at the Washington, 225), and all other applicable statutes DC offices of the Commission, 800 President MATEX International Ltd., 201 E. Grand and regulations to become a bank North Capitol Street, N.W., Room 962. holding company and/or to acquire the Interested parties may submit comments Avenue, Suite 1–A, Escondido, CA 92025, Officers: Ronald A. Matsuishi, assets or the ownership of, control of, or on an agreement to the Secretary, the power to vote shares of a bank or Federal Maritime Commission, President, Frank B. Reinsch, General Manager bank holding company and all of the Washington, DC 20573, within 10 days banks and nonbanking companies American Container Line, 1340 Tully of the date of this notice appears in the owned by the bank holding company, Road, Suite 313, San Jose, CA 95122, Federal Register. including the companies listed below. Steve Dinh, Sole Proprietor Agreement No.: 202–008090–042. The applications listed below, as well Dated: January 9, 1998. as other related filings required by the Title: Mediterranean North Pacific Joseph C. Polking, Board, are available for immediate Coast Freight Conference. Secretary. inspection at the Federal Reserve Bank Parties: Med Pacific Express Zim [FR Doc. 98–998 Filed 1–14–98; 8:45 am] indicated. The application also will be Israel Navigation Co., Ltd. BILLING CODE 6730±01±M available for inspection at the offices of Synopsis: The parties have modified the Board of Governors. Interested persons may express their views in their Agreement to reflect the deletion writing on the standards enumerated in of the trade from the West Coast of the the BHC Act (12 U.S.C. 1842(c)). If the United States to the Mediterranean from FEDERAL RESERVE SYSTEM proposal also involves the acquisition of the geographic scope of the Agreement Change in Bank Control Notices; a nonbanking company, the review also as of February 15, 1998. Acquisitions of Shares of Banks or includes whether the acquisition of the Agreement No.: 232–011605. Bank Holding Companies nonbanking company complies with the standards in section 4 of the BHC Act. Title: GWF/Seaboard Space Charter The notificants listed below have and Sailing Agreement. Unless otherwise noted, nonbanking applied under the Change in Bank activities will be conducted throughout Parties: Great White Fleet, Ltd. Control Act (12 U.S.C. 1817(j)) and § the United States. (‘‘GWF’’) Seaboard Marine, Ltd. 225.41 of the Board’s Regulation Y (12 Unless otherwise noted, comments (‘‘Seaboard’’) CFR 225.41) to acquire a bank or bank regarding each of these applications Synopsis: The proposed Agreement holding company. The factors that are must be received at the Reserve Bank permits the parties to charter space to considered in acting on the notices are indicated or the offices of the Board of set forth in paragraph 7 of the Act (12 each other, rationalize sailings, to Governors not later than February 9, U.S.C. 1817(j)(7)). interchange equipment, and to enter 1998. The notices are available for into joint terminal arrangements relating A. Federal Reserve Bank of Cleveland immediate inspection at the Federal to stevedoring or other marine terminal (Jeffery Hirsch, Banking Supervisor) Reserve Bank indicated. The notices operations in the trade between the U.S. 1455 East Sixth Street, Cleveland, Ohio also will be available for inspection at 44101-2566: Atlantic and Gulf Coasts and the the offices of the Board of Governors. 1. WesBanco, Inc., Wheeling, West Caribbean Coast of Colombia, Costa Interested persons may express their Virginia; to acquire 100 percent of the Rica, Guatemala, Honduras and Panama. views in writing to the Reserve Bank voting shares of Commercial By Order of the Federal Maritime indicated for that notice or to the offices Bancshares, Incorporated, Parkersburg, Commission. of the Board of Governors. Comments West Virginia, and thereby indirectly Dated: January 9, 1998. must be received not later than January acquire The Bank of Paden City, Paden Joseph C. Polking, 30, 1998. City, West Virginia, Commercial A. Federal Reserve Bank of St. Louis Banking and Trust Company, Secretary. (Randall C. Sumner, Vice President) 411 Parkersburg, West Virginia, Jackson [FR Doc. 98–997 Filed 1–14–98; 8:45 am] Locust Street, St. Louis, Missouri 63102- County Bank, Ravenswood, West BILLING CODE 6730±01±M 2034: Virginia, Farmers & Mechanics Bank of

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Ritchie County, Harrisville, West Board of Governors of the Federal Reserve Board of Governors of the Federal Reserve Virginia, The Dime Bank, Marietta, System, January 9, 1998. System, January 9, 1998. Ohio, Union Bank Of Tyler County, Jennifer J. Johnson, Jennifer J. Johnson, Middlebourne, West Virginia, The Deputy Secretary of the Board. Deputy Secretary of the Board. Community Bank, Pennsboro, West [FR Doc. 98–1001 Filed 1–14–98; 8:45 am] [FR Doc. 98–1002 Filed 1–14–98; 8:45 am] Virginia, and Gateway Bancshares, Inc., BILLING CODE 6210±01±F BILLING CODE 6210±01±F McMechen, West Virginia, and thereby indirectly acquire The Bank of McMechen, McMechen, West Virginia. FEDERAL RESERVE SYSTEM DEPARTMENT OF HEALTH AND In connection with this application, HUMAN SERVICES Notice of Proposals to Engage in Applicant also has applied to acquire Permissible Nonbanking Activities or Commbanc Investment, Inc., Marietta, Advisory Commission on Consumer to Acquire Companies that are Ohio, and Hometown Finance Co., Inc., Protection and Quality in the Health Engaged in Permissible Nonbanking Parkersburg, West Virginia, and thereby Care Industry; Notice of Public Meeting Activities engage in securities brokerage activities In accordance with Section 10(a)(2) of pursuant to § 225.28(b)(7)(i) of the The companies listed in this notice the Federal Advisory Committee Act, Board’s Regulation Y, in financial and have given notice under section 4 of the Public Law 92–463, notice is hereby advisory activities pursuant to § 225.28 Bank Holding Company Act (12 U.S.C. given of the meeting of the Advisory (b)(6) of the Board’s Regulation Y; 1843) (BHC Act) and Regulation Y, (12 Commission on Consumer Protection extending credit and servicing loans CFR Part 225) to engage de novo, or to and Quality in the Health Care Industry. pursuant to § 225.28(b)(1) of the Board’s acquire or control voting securities or This two-day meeting will be open to Regulation Y; and acting as agent for the assets of a company that engages either the public, limited only by the space sale of death and disability insurance directly or through a subsidiary or other available. directly related to its consumer lending company, in a nonbanking activity that Place of meeting: William Natcher activities pursuant to § 225.28(b)(11)(ii) is listed in § 225.28 of Regulation Y (12 Conference Center, National Institutes of of the Board’s Regulation Y. CFR 225.28) or that the Board has Health (Building 45), 45 Center Drive; B. Federal Reserve Bank of Atlanta determined by Order to be closely Bethesda, MD, 20892. Exact locations of the (Lois Berthaume, Vice President) 104 related to banking and permissible for sessions will be available at the conference Marietta Street, N.W., Atlanta, Georgia bank holding companies. Unless center (lower level) and on the Commission’s web site, ‘‘www.hcqualitycommission.gov’’. 30303-2713: otherwise noted, these activities will be Times and Dates: The public meeting will 1. Regions Financial Corporation, conducted throughout the United States. span two days. On Tuesday, January 27, Birmingham, Alabama; to merge with Each notice is available for inspection 1998, the subcommittee break-out sessions Key Florida Bancorp, Inc., Bradenton, at the Federal Reserve Bank indicated. will take place from 8:00 a.m. until 4:30 p.m. Florida, and thereby indirectly acquire The notice also will be available for On Wednesday, January 28, 1998, the general inspection at the offices of the Board of plenary session will begin at 8:00 a.m. and Liberty National Bank, Bradenton, it will continue until 4:00 p.m. Florida. Governors. Interested persons may Purpose/Agenda: To hear testimony and C. Federal Reserve Bank of St. Louis express their views in writing on the continue formal proceedings of the (Randall C. Sumner, Vice President) 411 question whether the proposal complies Commission’s three (3) remaining Locust Street, St. Louis, Missouri 63102- with the standards of section 4 of the subcommittees (Subcommittee on Consumer Rights has completed its work). Agenda items 2034: BHC Act. Unless otherwise noted, comments are subject to change as priorities dictate. 1. Community Bank Shares of Contact Person: For more information, regarding the applications must be Indiana, Inc., New Albany, Indiana; to including substantive program information received at the Reserve Bank indicated acquire 100 percent of the voting shares and summaries of the meeting, please or the offices of the Board of Governors of NCF Financial Corporation, contact: Edward (Chip) Malin, Hubert not later than January 29, 1998. Humphrey Building, Room 118F, 200 Bardstown, Kentucky, and thereby A. Federal Reserve Bank of San Independence Avenues, S.W., Washington, indirectly acquire NCF Bank & Trust DC 20201; [202/205–3333]. Company, Bardstown, Kentucky. Francisco (Maria Villanueva, Manager of Analytical Support, Consumer Dated: January 8, 1998. 2. Union Planters Corporation, Regulation Group) 101 Market Street, Janet Corrigan, Memphis, Tennessee; to acquire 100 San Francisco, California 94105-1579: Executive Director, Advisory Commission on percent of the voting shares of Security 1. Banque Nationale de Paris, Paris, Consumer Protection and Quality in the Bancshares, Inc., Des Arc, Arkansas, and Health Care Industry. France; to engage de novo through its thereby indirectly acquire Farmers & subsidiary BNP Securities (U.S.A.), Inc., [FR Doc. 98–962 Filed 1–14–98; 8:45 am] Merchants Bank, Des Arc, Arkansas, and Radnor, Pennsylvania, in buying and BILLING CODE 4110±60±M Merchants & Farmers Bank, West selling in the secondary market all types Helena, Arkansas. of securities on the order of customers D. Federal Reserve Bank of DEPARTMENT OF HEALTH AND as a ‘‘riskless principal’’ to the extent of HUMAN SERVICES Minneapolis (Karen L. Grandstrand, engaging in a transaction in which the Vice President) 90 Hennepin Avenue, company, after receiving an order to buy Centers for Disease Control and P.O. Box 291, Minneapolis, Minnesota (or sell) a security from a customer, Prevention 55480-0291: purchases (or sells) the security for its 1. Forstrom Bancorporation, Inc., own account to offset a [30DAY±07±98] Clara City, Minnesota; to merge with contemporaneous sale to (or purchase Agency Forms Undergoing Paperwork First Valley Bankcorp, Seeley Lake, from) the customer, pursuant to § Reduction Act Review Montana, and thereby indirectly acquire 225.28(b)(7)(ii) of the Board’s Regulation First Valley Bank, Seeley Lake, Y. The proposed activities will be The Centers for Disease Control and Montana. conducted worldwide. Prevention (CDC) publishes a list of

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2395 information collection requests under lead among children in the Tri-State lead, complete blood count, EP, ZPP, review by the Office of Management and Mining District. This district antibody titers, and the CDC/ATSDR Budget (OMB) in compliance with the encompasses several contaminated areas recommended immune panel. A second Paperwork Reduction Act (44 U.S.C. including three Superfund sites: The blood drawn a month later will examine Chapter 35). To request a copy of these Oronogo-Duenweg Mining Belt site in intra-personal immune tests stability requests, call the CDC Reports Clearance Jasper County, Missouri; the Cherokee and will help evaluate the relationship Office on (404) 639–7090. Send written County Site in Kansas; and the Tar between immune results and recent comments to CDC, Desk Officer; Human Creek, Ottawa County Site in Oklahoma. illness. Parents will be interviewed The proposed study consists of two Resources and Housing Branch, New using a children’s health questionnaire repeated in-person interviews and Executive Office Building, Room 10235; that solicits information on Washington, DC 20503. Written biological testing for blood lead and immune function among participants of demographics, the medical history of comments should be received within 30 each child and the occurrences of recent days of this notice. the ongoing lead screening programs in the Tri-State Mining district. illness. Statistical analyses will compare Proposed Projects Approximately 50 children identified as health outcome measures (symptoms, 1. The Tri-State Mining District: Lead having blood lead >10 micrograms per illness, change in immune parameters) Exposure and Immunotoxic Effects deciliter and 50 children with blood to blood lead levels. Other than their Study in the Tri-State District—New— lead levels <5 micrograms per deciliter time, there will be no cost to the The proposed study evaluates will constitute the study and respondents. The length of clearance associations between immune system comparison groups respectively. Blood requested is for 1 year. Total annual dysfunction/damage and exposure to specimens will be obtained to measure burden hours are 125.

Average Number of re- Number of re- burden/re- Total Form name spondents sponses/re- sponse burden spondent (in hrs) (in hrs.)

Verification ...... 500 1 0.5 25 Pediatric Immune Questionnaire ...... 100 2 0.05 100

2. National Childhood Blood Lead FY92, CDC awarded funds to eight monitor short-term trends; (3) identify Surveillance System—(0920–0337)— states to assist them in developing a clusters of cases; (4) determine Reinstatement—Lead poisoning is a complete childhood lead surveillance geographic distribution of cases; (5) common and societally devastating activity. In FY96, CDC provided funding examine risk factors among children environmental disease of young for childhood blood lead surveillance with elevated lead levels; (6) identify children in the United States. In activity in 31 states and the District of risk factors for elevated lead levels response to the call for a national Columbia. Sixteen of these states among specific population groups; (7) surveillance program of lead levels submitted 1995 (calendar year) data to target intervention programs to groups made in the HHS publication, Strategic the national database. Information from at risk for elevated lead levels; and (8) Plan for the Elimination of Childhood this national surveillance system may be track national progress in eliminating Lead Poisoning (February 1991), CDC used by Federal and state agencies to (1) childhood lead poisoning. Total annual established the National Childhood more accurately estimate the number of burden hours are 456. Blood Lead Surveillance System. In children with elevated lead levels; (2)

Number of re- Average bur- Total Respondents Number of re- sponses/re- den/response burden spondents spondent (in hrs.) (in hrs.)

State Health Departments: (a) Annual Report ...... 20 1 10 200 (b) Quarterly Report ...... 32 4 2 256

3. Risk And Protective Factors of reduce the risk of violence in women’s Hispanic women who: (1) Have never Intimate Partner Violence Survey— lives, (3) these risk and protective been in a violent relationship, (2) are New—The purpose of the project is to factors may influence women’s ability to currently in a violent relationship, and identify early warning signs and detect early warning signs for physical (3) have previously been in a violent protective factors in intimate violence violence perpetrated by an intimate relationship, but have been living free of prevention by conducting a random- partner, and (4) there may be differences violence for at least one year. The digit-dial national survey. Findings from between African-American, Caucasian, survey will gather data from a preliminary focus group study reveal and Hispanic women regarding helping approximately 1,800 women using an that: (1) There may exist a pattern of relationships and services utilized by interview protocol which was early warning signs that women can use abused women. developed and pilot tested in to avoid intimate partner violence, (2) The survey will include a conjunction with the focus group study certain individual and societal stratification methodology to include six and has been refined by experts and characteristics (which we call risk and specific categories of women across the protective factors), such as family United States who are over 18 years of CDC program staff. Total annual burden history of abuse or the support of age. The six categories of women are hours are 630. friends or institutions, may increase or African-American, Caucasian, and

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Number of Average Total Respondents Number of responses/ burden/ response burden respondents respondent (in hrs.) (in hrs.)

Never Abused in a Relationship: 12 min. ÐAfrican Am...... 300 1 .2 ...... 60 ÐCaucasian ...... 300 1 .2 ...... 60 ÐHispanic ...... 300 1 .2 ...... 60 Currently in Abusive Relationship: 15 min. ÐAfrican Am...... 300 1 .25 ...... 75 ÐCaucasian ...... 300 1 .25 ...... 75 ÐHispanic ...... 300 1 .25 ...... 75 Formerly in Abusive Relationship: 15 min. ÐAfrican Am...... 300 1 .25 ...... 75 ÐCaucasian ...... 300 1 .25 ...... 75 ÐHispanic ...... 300 1 .25 ...... 75

Dated: January 9, 1998. available from the Drug Information representatives. FDA also seeks input Wilma G. Johnson, Branch (HFD–210), Center for Drug from consumer representatives and Acting Associate Director for Policy Planning Evaluation and Research, Food and others. ICH is concerned with and Evaluation, Centers for Disease Control Drug Administration, 5600 Fishers harmonization of technical and Prevention (CDC). Lane, Rockville, MD 20857, 301–827– requirements for the registration of [FR Doc. 98–1016 Filed 1–14–98; 8:45 am] 4573. Single copies of the guidance may pharmaceutical products among three BILLING CODE 4163±18±M be obtained by mail from the Office of regions: The European Union, Japan, Communication, Training and and the United States. The six ICH Manufacturers Assistance (HFM–40), sponsors are the European Commission, DEPARTMENT OF HEALTH AND Center for Biologics Evaluation and the European Federation of HUMAN SERVICES Research (CBER), or by calling the CBER Pharmaceutical Industries Associations, Voice Information System at 1–800– the Japanese Ministry of Health and Food and Drug Administration 835–4709 or 301–827–1800. Copies may Welfare, the Japanese Pharmaceutical [Docket No. 96D±0236] be obtained from CBER’s FAX Manufacturers Association, the Centers Information System at 1–888–CBER– for Drug Evaluation and Research and International Conference on FAX or 301–827–3844. Biologics Evaluation and Research, Harmonisation; Guidance on Data FOR FURTHER INFORMATION CONTACT: FDA, and the Pharmaceutical Research Elements for Transmission of Regarding the guidance: Marcel E. and Manufacturers of America. The ICH Individual Case Safety Reports; Salive, Center for Biologics Secretariat, which coordinates the Availability Evaluation and Research (HFM– preparation of documentation, is 220), Food and Drug provided by the International AGENCY: Food and Drug Administration, Administration, 1401 Rockville Federation of Pharmaceutical HHS. Pike, Rockville, MD 20852, 301– Manufacturers Associations (IFPMA). ACTION: Notice. 827–3974. The ICH Steering Committee includes Regarding the ICH: Janet J. Showalter, representatives from each of the ICH SUMMARY: The Food and Drug Office of Health Affairs (HFY–20), sponsors and the IFPMA, as well as Administration (FDA) is publishing a Food and Drug Administration, observers from the World Health guidance entitled ‘‘E2B Data Elements 5600 Fishers Lane, Rockville, MD Organization, the Canadian Health for Transmission of Individual Case 20857, 301–827–0864. Protection Branch, and the European Safety Reports.’’ The guidance was SUPPLEMENTARY INFORMATION: In recent Free Trade Area. prepared under the auspices of the years, many important initiatives have In the Federal Register of October 1, International Conference on been undertaken by regulatory 1996 (61 FR 51287), FDA published a Harmonisation of Technical authorities and industry associations to draft tripartite guideline entitled ‘‘Data Requirements for Registration of promote international harmonization of Elements for Transmission of Individual Pharmaceuticals for Human Use (ICH). regulatory requirements. FDA has Case Safety Reports’’ (E2B). The notice The guidance is intended to facilitate participated in many meetings designed gave interested persons an opportunity the standardization of the data elements to enhance harmonization and is to submit comments by December 30, for the transmission of individual case committed to seeking scientifically 1996. safety reports for both preapproval and based harmonized technical procedures After consideration of the comments postapproval reporting periods. for pharmaceutical development. One of received and revisions to the guidance, DATES: Effective January 15, 1998. the goals of harmonization is to identify a final draft of the guidance was Submit written comments at any time. and then reduce differences in technical submitted to the ICH Steering ADDRESSES: Submit written comments requirements for drug development Committee and endorsed by the three on the guidance to the Dockets among regulatory agencies. participating regulatory agencies on July Management Branch (HFA–305), Food ICH was organized to provide an 17, 1997. and Drug Administration, 12420 opportunity for tripartite harmonization In accordance with FDA’s Good Parklawn Dr., rm. 1–23, Rockville, MD initiatives to be developed with input Guidance Practices (62 FR 8961, 20857. Copies of the guidance are from both regulatory and industry February 27, 1997), this document has

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2397 been designated a guidance, rather than E2B Data Elements for Transmission of This document has taken into account the a guideline. Individual Case Safety Reports1 documents provided by ICH sponsors, the ENS-CARE Single Case Format, EuroSCaPE The guidance is intended to facilitate 1. Introduction format, and the CIOMS IA proposal, and the standardization of the data elements 1.1 Scope of this guidance comments received following the circulation for the transmission of individual case of these papers. safety reports by identifying and The objectives of the working group are to facilitate the standardization of the data 1.3 Notes on format of this document defining the data elements for the elements for transmission of individual case Section 2 and its subsections designated A transmission of all types of individual safety reports by identifying and, where and B contain notes that are directed toward case safety reports, regardless of source necessary or advisable, by defining the data clarifying the nature of the data that should and destination. This includes case elements for the transmission of all types of be provided. In addition, there are notes to safety reports for both preapproval and individual case safety reports, regardless of assist in defining the format that should be postapproval reporting periods and source and destination. This includes case used to transmit the data. covers both adverse drug reaction and safety reports for both pre- and postapproval periods and covers both adverse drug 1.4 Definition of Data Elements adverse event reports. It is not intended reaction and adverse event reports. It is not The format for individual case safety that this format should be used for cases intended that this format should be used for reports includes provisions for transmitting in the integrated safety summary of a cases in the integrated safety summary of a all the relevant data elements useful to assess marketing license application dossier. marketing license application dossier. For an individual adverse drug reaction or For adverse reactions encountered in adverse reactions encountered in clinical adverse event report. The data elements are clinical trials, this format should be trials, this format should be used only for sufficiently comprehensive to cover complex those subject to expedited reporting. The reports from most sources, different data sets, used only for those subject to expedited scope of this topic does not encompass the reporting. and transmission situations or requirements; definition of database structures, nor the therefore, not every data element will be This guidance represents the agency’s design of a paper report form, quality available for every transmission. In many, if current thinking on data elements for control/quality assurance aspects, or not most, instances, a substantial number of the transmission of individual case technical security issues. the data elements will not be known and safety reports. It does not create or 1.2 Background therefore will not be included in the confer any rights for, or on, any person transmission. Where it was deemed Because of national and international laws, necessary, provisions for unknown/not and does not operate to bind FDA or the rules, and regulations, individual case safety applicable were included (e.g., outcome, public. An alternative approach may be reports of adverse drug reactions and adverse route of administration). However, since the events need to be transmitted: used if such approach satisfies the transmission is intended to be electronic, it - From identified reporting sources to requirements of the applicable statute, was thought to be unnecessary to include regulatory authorities and pharmaceutical provisions to assign values of unknown for regulations, or both. companies; all data elements. Different ways of including - Between regulatory authorities; As with all of FDA’s guidances, the the same data have been provided to cope - Between pharmaceutical companies and public is encouraged to submit written with differing information contents: e.g., age regulatory authorities; comments with new data or other new information can be sent as date of birth and - Within authorities or pharmaceutical date of reaction/event, age at the time of information pertinent to this guidance. companies; The comments in the docket will be - From clinical investigators, via the reaction/event, or patient age group periodically reviewed, and, where sponsor, to ethics committees; according to the available information (see appropriate, the guidance will be - From authorities to the World Health section B.1.2 and the respective user guidance). In this example, age would be amended. The public will be notified of Organization (WHO) Collaborating Center for International Drug Monitoring. provided by the most precise available data any such amendments through a notice element rather than including multiple in the Federal Register. The transmission of such individual case safety reports currently relies on paper-based elements of redundant data. Interested persons may, at any time, formats (e.g., yellow cards, Council for Structured data are strongly recommended submit written comments on the International Organizations of Medical in electronic transmission and provisions for including information in this way have been guidance to the Dockets Management Sciences (CIOMS) forms, MedWatch) or electronic media (e.g., within pharmaceutical made. However, structuring of the data also Branch (address above). Two copies of implies the use of controlled vocabularies, any comments are to be submitted, companies, or with WHO), usually by online access, tape, or file transfer. which are not yet available for some data except that individuals may submit one Considering the large number of potential elements. It is anticipated that electronic copy. Comments are to be identified participants in a world-wide exchange of transmission of individual case safety reports with the docket number found in information, there is a need for an electronic will be implemented without controlled brackets in the heading of this format capable of accommodating direct vocabularies until they become available. In document. The guidance and received database to database transmission using certain instances, there are provisions for the transmission of some free text items, comments may be seen in the office message transfers. Successful electronic transmission of including a full text case summary narrative. above between 9 a.m. and 4 p.m., The transmission of other unstructured data, Monday through Friday. An electronic information relies on the definition of common data elements, provided in this such as full clinical records or images, is version of this guidance is available on document, and standard transmission outside the scope of this guidance. the Internet at ‘‘http://www.fda.gov/ procedures to be specified by the ICH 1.5 Minimum information cder/guidance/index.htm’’ or at CBER’s Electronic Standards for the Transfer of The minimum information for the World Wide Web site at ‘‘http:// Regulatory Information (ESTRI) Expert transmission of a report should include at Working Group (M2). www.fda.gov/cber/publications.htm’’. least one identifiable patient (section B.1), Information on the electronic one identifiable reporter (section A.2), one transmission of individual case safety 1 This guidance represents the agency’s current reaction/event (section B.2), and one suspect reports is available on the Internet at thinking on data elements for the transmission of drug (section B.4). Because it is often difficult individual case safety reports. It does not create or IFPMA’s ICH site home page at ‘‘http:/ confer any rights for or on any person and does not to obtain all the information, any one of /www.ifpma.org/ich1.html’’ (see ‘‘http:/ operate to bind FDA or the public. An alternative several data elements is considered sufficient /www.ifpma.org/m2-site/manicsr.htm’’). approach may be used if such approach satisfies the to define an identifiable patient (e.g., initials, requirements of the applicable statute, regulations, age, sex) or an identifiable reporter (e.g., The text of the guidance follows: or both. initials, address, qualification). It is also

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In addition, in order to properly process where the initial sender did not specify the - Yes/no the report, the following administrative type of report; it differs from Other which User Guidance: information is needed: The sender identifier indicates the sender knows the type of report This item is used to provide the sender’s (A.3.1.2), the report identification number(s) but cannot fit it into the categories provided. local reporting requirements, and the (A.1.10), and the date of receipt of the most A.1.5 Seriousness definition of expedited is dependent on the recent information (A.1.7) (see user guidance A.1.5.1. Serious local regulatory requirements. When the for A.1.7). - Yes/no countries of origin and destination of the A.1.5.2. Seriousness criteria (more than one transmission differ, the receiver should be 2. Guidance: Content of the Data Elements can be chosen) aware that the information may not be The data elements are divided into sections - Results in death applicable to their regulatory requirements. pertaining to: - Is life-threatening A.1.10 Report identification number(s) A: Administrative and Identification - Requires inpatient hospitalization or A.1.10.1 National regulatory authority’s case Information prolongation of existing hospitalization report number A.1 - Identification of the case safety report - Results in persistent or significant A.1.10.2 Company’s case report number A.2 - Primary source(s) of information disability/incapacity (as per reporter’s A.1.10.3 Other sender’s case report number A.3 - Information on sender and receiver of opinion) User Guidance: case safety report - Is a congenital anomaly/birth defect A.1.10.1 and A.1.10.2 are the identifiers B: Information on the Case: - Other medically important condition given by a national regulatory authority and B.1 - Patient characteristics User Guidance: by a company, respectively. Both identifiers B.2 - Reaction(s)/event(s) The terms life-threatening and other may be transmitted if known. Companies B.3 - Results of tests and procedures medically important condition are defined in should ensure a single international report relevant to the investigation of the the ICH E2A guidance. All the criteria apply number to facilitate the unique identification patient to the case as a whole and should not be of a report that may have been sent to many B.4 - Drug(s) information confused with the outcome(s) of individual places and subject to multiple B.5 - Narrative case summary and further reactions(s)/event(s) that are provided in retransmissions. A.1.10.3 would be used by information section B.2.i.9. senders who are not representing either a A. Administrative and Identification A.1.6 Date report was first received from pharmaceutical company or a national Information source regulatory authority. A.1 Identification of the case safety report Note concerning transmission: User Guidance: A.1.1 Identification of the country of the Alpha/numeric data. For senders dealing with initial A.1.11 Suspected duplicate primary source information, this should always be the date User Guidance: received from the primary source. When - Yes Generally, this item would be the only retransmitting information received from User Guidance: country provided. Provisions are made to another regulatory agency or another This item is used when the sender suspects include other countries for unusual cases company or any other secondary source, or knows that the report has already been concerning foreign travel and sources of receivers should use the date they first transmitted to the receiver. Only an manufactured material (A.1.2 and B.4.k.2.3). received the information. affirmative answer is needed, otherwise the Note concerning transmission: Note concerning transmission: item is left empty. If known, the suspect duplicate case report number(s) and the other The codes for countries are defined by the Full precision date, i.e., day, month, and sender(s), where applicable, can be provided. transmission standard. year. A.1.11.1 Source(s) of the duplicate (e.g., A.1.2 Identification of the country where the A.1.7 Date of receipt of the most recent name of the company, name of regulatory reaction/event occurred information for this report agency) User Guidance: User Guidance: A.1.11.2 Case report number of the suspected For example, if the reaction was detected Because reports are required to be sent at duplicate(s) while the patient was traveling, but the different times to multiple receivers, the Note concerning transmission: report was made by a health professional on initial/follow up status is dependent upon Alpha/numeric data for the number and the patient’s return. the receiver. For this reason, an item to source. A.1.3 Date of this transmission capture followup status is not included. A.1.12 Identification number of the report However, the date of receipt of the most Note concerning transmission: which is linked to this report (repeat as recent information taken together with the Full precision date, i.e., day, month, and necessary) year. ‘‘sender identifier’’ (A.3.1.2) and sender’s User Guidance: A.1.4 Type of report ‘‘report identification number’’ (A.1.10) provide a mechanism for each receiver to This section is used in the case of, e.g., a - Spontaneous report identify whether the report being transmitted mother-child pair where both had reactions/ - Report from study is an initial or followup report. For this events or siblings with common exposure, or - Other reason, these items are considered necessary several reports involving the same patient, or - Not available to sender (unknown) for each transmission. several similar reports from same reporter User Guidance: Note concerning transmission: (cluster). These links do not refer to A separate category for the designation of duplicates, but to links of clinical relevance Full precision date, i.e., day, month, and a literature source is covered in item A.2.2 (the reactions/events are shared among year. and is not duplicated in this section which patients or in the same patient and appear A.1.8 Additional available documents held is intended to capture the type of report. If pertinent to each other). by sender the case in the literature arises from Note concerning transmission: A.1.8.1 Are additional documents available? spontaneous observations, type should be Alpha/numeric data. Spontaneous report; if the case arises from a - Yes/no A.1.13 Report nullification study, type should be Report from study. If A.1.8.2 List of documents held by sender - Yes it is unclear from the literature report User Guidance: User Guidance: whether the case(s) cited are spontaneous List the documents received from the This item is used to indicate that a observations or arise from a study, then this primary source (e.g., clinical records, previously transmitted report should be item should be Other. hospital records, autopsy reports). It is considered completely void (nullified), for Differentiation between types of studies, e.g., recognized that these documents may not be example when the whole case was found to clinical trials or others, is given in section obtainable in many instances. be erroneous. It is essential to use the same A.2.3.3. Note concerning transmission: case report number previously submitted.

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A.1.13.1 Reason for nullification Note concerning transmission: In cases where a fetus or suckling infant Note concerning transmission: Alpha/numeric data. sustains an adverse reaction/event, Free text. A.2.3 Study identification information on both the parent and the child/ A.1.14 Was the case medically confirmed, A.2.3.1 Study name fetus should be provided. Reports of these if not initially from a health professional? A.2.3.2 Sponsor study number cases are referred to as parent-child/fetus - Yes/no User Guidance: report. Several general principles are used for User Guidance: This section would be completed only if filing these reports. If there has been no This section is completed if the primary the sender is the study sponsor or has been reaction/event affecting the child/fetus, the source of information was a lawyer, informed of the study number by the parent-child/fetus report does not apply. For consumer, or other nonhealth professional sponsor. those cases describing fetal demise or early A.2.3.3 Study type in which the reaction(s)/ and it is needed because of differences in spontaneous abortion, only a parent report is event(s) were observed postmarketing surveillance regulations applicable. If both the parent and the child/ concerning lay reports. - Clinical trials fetus sustain adverse events, two reports are A.2 Primary source(s) of information - Individual patient use, e.g., provided, but they are linked by using ‘‘compassionate use’’ or named patient sections A.1.12 in each of the reports. When The primary source(s) of the information is basis only the child/fetus has an adverse reaction/ a person who reports the facts. This should - Other studies event (other than early spontaneous abortion/ be distinguished from senders (secondary User Guidance: fetal demise), the information provided in sources) who are transmitting the Other studies include this section applies to the child/fetus, and information, e.g., industry to regulatory pharmacoepidemiology, characteristics concerning the parent who authority. pharmacoeconomics, intensive monitoring, was the source of exposure to the drug are Any or all of the three subsections (A.2.1, PMS, etc. A.2.2, A.2.3) can be used. In the case of a provided in section B.1.10. A.3 Information on sender and receiver of B.1.1 Patient (name or initials) published study or published individual case safety report User Guidance: case, the reporter would be the investigator A.3.1 Sender The identification of the patient may be or first author, and details on publication and A.3.1.1 Type trial type should also be provided. prohibited by certain national confidentiality - Pharmaceutical company A.2.1 Primary source(s) (repeat as necessary) laws or directives. The information is only - Regulatory authority A.2.1.1 Reporter identifier (name or initials) provided when it is in conformance with the - Health professional confidentiality requirements. This also User Guidance: - Regional pharmacovigilance center The identification of the reporter may be applies to medical record number(s) (B.1.1.1). - WHO collaborating center for B.1.1.1 Patient medical record number(s) and prohibited by certain national confidentiality international drug monitoring source(s) (if allowable) laws or directives. The information is only - Other (e.g., distributor, study sponsor, or provided when it is in conformance with the contract research organization) User Guidance: confidentiality requirements and this User Guidance: Record numbers may include the general guidance applies to all the subsections of In this context, a pharmaceutical company practitioner and/or specialist record(s) A.2.1. Notwithstanding the above, at least includes biotechnology companies and other number(s), hospital record(s) numbers, or one subsection should be completed to fulfill manufacturers required to submit individual patient/subject identification number in a the general need of having an identifiable case safety reports. study. reporter. If only the name of the reporter is A.3.1.2 Sender identifier Note concerning transmission: known and it is prohibited to provide it User Guidance: Alpha/numeric data. because of confidentiality requirements, Identifies the sender, e.g., company name B.1.2 Age information initials can be used. or regulatory authority name. This item User Guidance: A.2.1.2 Reporter’s address should always be completed. To be used according to the most precise Note concerning transmission: A.3.1.3 Person responsible for sending the information available. The format for addresses are defined in the report B.1.2.1 Date of birth transmission standard. User Guidance: User Guidance: A.2.1.3 Country Name of person in the company or agency If the full date of birth is not known, use Note concerning transmission: who is responsible for the authorization of section B.1.2.2 The codes for countries are defined by the report dissemination. This would usually be Note concerning transmission: transmission standard. the same person who signs the covering Full precision date, i.e., day, month, and A.2.1.4 Qualification memo for paper submissions. The inclusion year. - Physician of the name of this person in the B.1.2.2 Age at time of onset of reaction/event - Pharmacist transmission may be subject to national or User Guidance: - Other health professional international regulations. If several reactions/events are in the report, - Lawyer A.3.1.4 Sender’s address, fax, telephone and use the Age at the time of the first reaction/ - Consumer or other nonhealth professional e-mail address event. For fetal reaction(s)/event(s), use the User Guidance: A.3.2 Receiver next item Gestation period when reaction/ In some regions, consumer and lawyer User Guidance: event was observed (B.1.2.2.1). reports are transmitted only when there is See the user guidance concerning the When providing the age in decades, please medical confirmation. sender (A.3.1). note that, for example, the 7th decade refers A.2.2 Literature reference(s) A.3.2.1 Type to a person in their 60’s. User Guidance: - Pharmaceutical company Note concerning transmission: References are provided in the Vancouver - Regulatory authority The codes to be used are defined in the Convention (known as ‘‘Vancouver style’’) as - Regional pharmacovigilance center transmission standard but should include developed by the International Committee of - WHO collaborating center for various age units (days, weeks, months, Medical Journal Editors. The standard international drug monitoring years, decades). format, as well as those for special situations, - Other (e.g., a company affiliate or a B.1.2.2.1 Gestation period when reaction/ can be found in the following reference, partner) event was observed in the fetus which is in the Vancouver style. A.3.2.2 Receiver identifier (see glossary) User Guidance: International Committee of Medical Journal A.3.2.3 Receiver’s address, fax, telephone The gestation period at the time of Editors, Uniform requirements for and e-mail address exposure is captured in section B.4.k.10. manuscripts submitted to biomedical B. Information on the Case Note concerning transmission: journals, New England Journal of Medicine, B.1 Patient characteristics Number and units (days, weeks, months or 1997; 336:309–15. User Guidance: trimester).

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B.1.2.3 Patient age group (as per reporter) should be completed only when the age is B.1.4 Height (cm) - Neonate not provided more specifically in sections B.1.5 Sex - Infant B.1.2.2 or B.1.2.3. B.1.6 Last menstrual period date - Child B.1.3 Weight (kg) Note concerning transmission: - Adolescent User Guidance: Imprecise dates are acceptable, i.e., month - Adult The weight at the time of the event/ and year, or year only. - Elderly B.1.7 Relevant medical history and reaction. User Guidance: concurrent conditions (not including The terms are not defined in this document Note concerning transmission: reaction/event) and are intended to be used as they were The codes for items B.1.3–B.1.5 are defined B.1.7.1 Structured information (repeat as reported by the primary source. This section in the transmission standard. necessary)

Disease/surgical procedure/etc. Start date Continuing Y/N/U End date Comments

User Guidance: relevance of the past medical history, this B.1.7.2 Text for relevant medical history and Medical judgment should be exercised in information can be included in the comments concurrent conditions (not including completing this section. Information column. reaction/event) pertinent to understanding the case is Note concerning transmission: User Guidance: desired, such as diseases, conditions such as Imprecise dates may be used for both start To be used if structured information is not pregnancy, surgical procedures, and end dates. The continuing column available in the sender’s database. Otherwise, psychological trauma. Each of the items in should accept values for yes, no, and it is preferable to send structured data in the table can be repeated as necessary. If segment B.1.7.1. unknown; and the main descriptive column precise dates are not known and a text Note concerning transmission: should have alpha data in concordance with description aids in understanding the Free text. medical history, or if concise additional the controlled vocabulary being developed. B.1.8 Relevant past drug history (repeat the information is helpful in showing the line as necessary)

Name of drug as reported Start date End date Indication Reactions

User Guidance: B.1.9. In case of death B.1.10.4 through B.1.10.8, review the This segment concerns previously taken B.1.9.1 Date of death guidances provided for B.1.3 through B.1.5 drugs, but not those taken concomitantly or Note concerning transmission: and B.1.7 through B.1.8. drugs that may have potentially been Imprecise date format. B.1.10.1 Parent identification involved in the current reaction(s)/event(s). B.1.9.2 Reported cause(s) of death (repeat as B.1.10.2 Parent age information Information concerning concomitant and necessary) User Guidance: other suspect drugs is included in section Note concerning transmission: Use the date of birth if the precise birthday B.4. The information provided here may also Controlled vocabulary should be used is known, otherwise use age. include previous experience with similar when fully implemented. B.1.10.2.1 Date of birth of parent drugs. Medical judgment should be exercised B.1.9.3 Was autopsy done? in completing this section. When completing Note concerning transmission: the item concerning the name of the drug it - Yes/no/unknown Full precision date. is important to use the words provided by the B.1.9.4 Autopsy-determined cause(s) of death B.1.10.2.2 Age of parent primary source. Trade name, generic name, (repeat as necessary) B.1.10.3 Last menstrual period date or class of drug can be used. The term Note concerning transmission: User Guidance: ‘‘none’’ should be used when appropriate, Controlled vocabulary should be used If a precise date is not available, complete e.g., when there is no previous exposure to when fully implemented. the gestation period at time of exposure in the drug or vaccine, or no previous reaction B.1.10 For a parent-child/fetus report, B.4.k.10. following exposure. information concerning the parent Note concerning transmission: Note concerning transmission: User Guidance: Full precision date. The data element for name of drug should This section is used only in the case of a B.1.10.4 Weight (kg) of parent accept alpha/numeric data and include parent-child/fetus report where the parent B.1.10.5 Height (cm) of parent provisions for accepting the word none. The had no reaction/event. See user guidance for B.1.10.6 Sex of parent data elements for reactions and indications section B.1. Guidance regarding B.1.10.7 Relevant medical history and should conform to the controlled vocabulary confidentiality is provided in B.1.1 and concurrent conditions of parent (not when fully implemented. Both dates may be should be considered before providing the including reaction/event) imprecise. parent identification. For the subsections B.1.10.7.1 Structured information (parent)

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Disease/surgical procedure/etc. Start date Continuing Y/N/U End Date Comments

B.1.10.7.2 Text for relevant medical history and concurrent conditions of parent (not including reaction/event) B.1.10.8 Relevant past drug history of parent

Reactions (if any and Name of drug as reported Start date End date Indication known)

B.2 Reaction(s)/event(s) B.2.i.4 Date of start of reaction/event B.2.i.7.1 Time interval between beginning of User Guidance: B.2.i.5 Date of end of reaction/event suspect drug administration and start of The designation of ‘‘i’’ in this section B.2.i.6 Duration of reaction/event reaction/event indicates that each item is repeatable and User Guidance: B.2.i.7.2 Time interval between last dose and that it carries an appropriate correspondence This section can usually be computed from start of reaction/event B.2.i.8 Outcome of reaction/event at the time to the same ‘‘i’’ in all subsections. A separate start/end of reaction/event. However, of last observation block (i) should be used for each reaction/ sometimes, both dates and duration are event term. For example, if two reactions are useful, e.g., for a reaction/event of short - Recovered/resolved observed, the first reaction would be duration such as anaphylaxis or arrhythmia. - Recovering/resolving - Not recovered/not resolved described in items B.2.1.1 through B.2.1.9, Note concerning transmission: - Recovered/resolved with sequelae and the other reaction would be described in Imprecise dates may be used and the items B.2.2.1 through B.2.2.9. - Fatal duration is defined by the transmission - Unknown B.2.i.1 Reaction/event as reported by the standard. primary source User Guidance: B.2.i.7 Time intervals between suspect drug In case of irreversible congenital User Guidance: administration and start of reaction/event anomalies, the choice Not recovered/not The original reporter’s words and/or short User Guidance: resolved should be used. Fatal should be phrases are used to describe the reaction/ The major uses of intervals are to cover used when death is possibly related to the event. This should be provided in a language reaction/event. Considering the difficulty of agreed upon by sender and receiver. For circumstances where both the dates are deciding between ‘‘reaction/event caused international transmissions, English is the known but the interval is very short (e.g., death’’ and ‘‘reaction/event contributed generally accepted language. minutes, such as in anaphylaxis), and when significantly to death’’, both were grouped in Note concerning transmission: only imprecise dates are known but more information concerning the interval is a single category. Where, according to both Alpha/numeric data. the reporter and the sender, the death is B.2.i.2 Reaction/event term known. Dates, if available, should always be transmitted in the appropriate fields rather unrelated to the reaction/event, ‘‘death’’ User Guidance: should not be selected here, but is reported than intervals. The term can be a sign, symptom, or only under section B.1.9. When there is more than one reaction/ diagnosis. A controlled vocabulary should be B.3 Results of tests and procedures relevant used when available. This also applies to the event and more than one suspect drug, there to the investigation of the patient is a matrix of intervals between the exposures other items of structured data, such as User Guidance: and reactions/events. B.2.i.7 captures the indication, diseases in past medical history. This section captures the tests and interval between each reaction/event and one Note concerning transmission: procedures performed to diagnose or confirm Alpha/numeric data. suspect drug. B.4.k.13 captures the interval the reaction/event, including those tests done B.2.i.3 Term highlighted by the reporter between each suspect drug and one reaction/ to investigate (exclude) a nondrug cause, e.g., - Yes event. The sender should choose the drug serologic tests for infectious hepatitis in User Guidance: and reaction/event considered based on suspected drug-induced hepatitis. Both To be used when the primary source information available and/or the reporter’s positive and negative results should be indicated that the reaction/event was a major judgment. The complexity of the intervals reported. While structured information is concern or reason for reporting the case. If highlights the desirability of providing dates. preferable, provisions are made to transmit the information is not explicitly provided by Note concerning transmission: the information as free text in B.3.2. the initial reporter, the item should be left Codes are defined in the transmission B.3.1 Structured information (repeat as blank. Only affirmative answers are needed. standard. necessary)

More information Date Test Result Unit Normal low range Normal high range available (Y/N)

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Note concerning transmission: allows for multiple batch/lot numbers, each B.4.k.7 Pharmaceutical form (Dosage form) Imprecise dates may be used. The separated by a delimiter defined by the User Guidance: description of the tests, results, units, and transmission standard chosen. Provide the E.g., tablets, capsules, syrup. normal ranges will be in free text unless most specific information available. For Note concerning transmission: covered by a controlled vocabulary. The expiration date and other related Free text until a controlled vocabulary is column entitled ‘‘more information information, see additional information on available’’ accepts only yes or no. drug (B.4.k.19). available. B.3.2 Results of tests and procedures relevant Note concerning transmission: B.4.k.8 Route of administration to the investigation Alpha/numeric data, the delimiter to User Guidance: Note concerning transmission: separate batch and lot numbers to be defined See suggested vocabulary in the route of Free text. by the transmission standard. administration list in Attachment 2. For a B.4 Drug(s) information B.4.k.4 Holder and authorization/application parent-child/fetus report, this indicates the User Guidance: number of drug route of administration of a drug given to the This section covers both suspect drugs and User Guidance: child/fetus. This is usually an indirect concomitant medications, including If relevant and known, provide the name exposure, such as transmammary, but can biologicals. In addition, the section can be of the holder and the authorization number include more usual routes of administration used to identify drugs thought to have an in the country where the drug was obtained interaction. For each drug, the for other drugs given to the child. The parent when the case report is sent to that country. route of administration is provided in characterization of the drug role (B.4.k.1) is These items apply to both applications and B.4.k.9. that indicated by the primary reporter, i.e., authorizations. Pharmaceutical companies B.4.k.9 Parent route of administration (in the original source of the information. The provide this information for their own case of a parent child/fetus report) designation of ‘‘k’’ in this section indicates suspect drug(s). that each item is repeatable and that it carries B.4.k.4.1 Authorization/application number User Guidance: an appropriate correspondence to the same Note concerning transmission: This section is used only in a parent-child/ ‘‘k’’ in all subsections. A separate block (k) fetus report and linked parent reports to should be used for each drug. Drugs used to Alpha/numeric data. indicate the route of administration to the treat the reaction/event should not be B.4.k.4.2 Country of authorization/ included here. application parent. B.4.k.1 Characterization of drug role Note concerning transmission: B.4.k.10 Gestation period at time of exposure - Suspect/concomitant/interacting The codes for countries are defined by the User Guidance: User Guidance: transmission standard. Use the gestational age at the time of the Characterization of the drug as provided by B.4.k.4.3 Name of holder/applicant earliest exposure primary reporter. By convention, all Note concerning transmission: Note concerning transmission: spontaneous reports have at least one suspect Alpha/numeric data. Gestation period at time of exposure is drug. B.4.k.5 Structured dosage information expressed by providing both a number and B.4.k.2 Drug identification E.g., 2 milligrams (mg) three times a day for designation of units of days, weeks, months, User Guidance: 5 days or trimester. Drug substance name and/or proprietary B.4.k.5.1 dose (number): 2 B.4.k.11 Indication for use in the case medicinal product name is provided as it was B.4.k.5.2 dose (unit): mg User Guidance: reported. B.4.k.5.3 number of separate dosages: 3 B.4.k.2.1 Proprietary medicinal product name B.4.k.5.4 number of units in the interval: 1 The indication as reported. Note concerning transmission: User Guidance: B.4.k.5.5 definition of the interval unit: day The name should be that used by the B.4.k.5.6 cumulative dose to first reaction Controlled vocabulary to be used when reporter. It is recognized that a single product (number): 30 fully implemented. may have different proprietary names in B.4.k.5.7 cumulative dose to first reaction B.4.k.12 Date of start of drug different countries, even when produced by (unit): mg Note concerning transmission: a single manufacturer. User Guidance: Imprecise date formats in this section as Note concerning transmission: Please note the side-by-side illustration of well as in B.4.k.14. Alpha/numeric data. how the structured dosage is provided. For B.4.k.13 Time intervals between drug B.4.k.2.2 Active substance name(s) the more complex example of 5 mg (in one administration and start of reaction/event User Guidance: dose) every other day for 30 days, User Guidance: Provide the international nonpropriety subsections B.4.k.5.1 through B.4.k.5.7 would name(s) (INN(s)) or drug substance name(s) be 5, mg, 1, 2, day, 75, mg, respectively. In The major uses of intervals are to cover or drug identification code(s) if no name the same way, 50 mg daily for 2 days would circumstances where both the dates are exists. For combination products, each active be 50, mg, 1, 1, day, 100, mg. For prolonged known but the interval is very short (e.g., ingredient should be specified. This chronic therapy, the sender should consider minutes, such as in anaphylaxis), and when information, as well as that requested for the need to complete the cumulative dose only imprecise dates are known but more Proprietary medicinal product name sections. information concerning the interval is (B.4.k.2.1), may not be known for In the case of a parent-child/fetus report, known. Dates, if available, should always be concomitant or interacting drugs when the the dosage section applies to the parental transmitted in the appropriate items rather sender is a pharmaceutical company. In the dose. than intervals. case of blinded trials, in the exceptional For dosage regimen that involve more than When there is more than one reaction/ circumstance when the blind has not been one dosage form and/or changes in dosage, event and more than one suspect drug, there broken, the word ‘‘blinded’’ should precede the information is provided in section B.4.k.6 is a matrix of intervals between the exposures the names of the drugs included in the study. as text. Alternatively, the sender can provide and reactions/events. B.2.i.7 captures the Placebo can be included as a drug. more than one iteration (k) for the same drug. B.4.k.2.3 Identification of the country where Categories for ‘‘dose unit’’ and for ‘‘definition interval between each reaction/event and one the drug was obtained of the interval’’ are described in Attachment suspect drug. B.4.k.13 captures the interval Note concerning transmission: 1. between each suspect drug and one reaction/ The codes for countries are defined by the B.4.k.6 Dosage text event. The sender should select the drug and transmission standard. User Guidance: reaction/event based on information B.4.k.3 Batch/lot number To be used in cases where provision of available and/or the reporter’s judgment. User Guidance: structured dosage information is not possible. Note concerning transmission: This information is particularly important Note concerning transmission: The format for intervals is defined in the for vaccines and biologicals. The section Free text. transmission standard.

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B.4.k.13.1 Time interval between beginning B.4.k.18.1 Reaction assessed Attachment 1 of drug administration and start of reaction/ User Guidance: Unit List event Generally the reaction assessed is the most Mass B.4.k.13.2 Time interval between last dose important or the most serious. kg kilogram(s) of drug and start of reaction/event B.4.k.18.2 Source of assessment g gram(s) B.4.k.14 Date of last administration User Guidance: mg milligram(s) µ User guidance: E.g., initial reporter, investigator, g microgram(s) For ongoing drug administration after the regulatory agency, company. ng nanogram(s) onset of the reaction/event, leave this item B.4.k.18.3 Method of assessment pg picogram(s) blank and use Action(s) taken with drug mg/kg milligram(s)/kilogram (B.4.k.16). User Guidance: µg/kg microgram(s)/kilogram B.4.k.15 Duration of drug administration E.g., global introspection, algorithm, mg/m2 milligram(s)/sq. meter User Guidance: Bayesian calculation. µg/m2 microgram(s)/sq. meter This item is used if exact dates of drug B.4.k.18.4 Result Radioactivity administration are not available at the time B.4.k.19 Additional information on drug Bq becquerel(s) of the report, but there is information User Guidance: GBq gigabecquerel(s) concerning the duration of drug Use to specify any additional information MBq megabecquerel(s) administration. The information requested is pertinent to the case that is not covered by Kbq kilobecquerel(s) the overall duration of drug administration above sections (e.g., beyond expiration date, Ci curie(s) and covers intermittent administration. batch and lot tested and found to be within mCi millicurie(s) Note concerning transmission: specifications). µCi microcurie(s) The format is defined in the transmission B.5 Narrative case summary and further nCi nanocurie(s) standard. information Volume B.4.k.16 Action(s) taken with drug B.5.1 Case narrative including clinical l litre(s) course, therapeutic measures, outcome, and ml millilitre(s) - Drug withdrawn µ - Dose reduced additional relevant information. l microlitre(s) - Dose increased Other User guidance: mol mole(s) - Dose not changed Focused, factual, and clear description of - Unknown mmol millimole(s) the case. µmol micromole(s) - Not applicable Note concerning transmission: User Guidance: iu international unit(s) Free text. kiu iu(1000s) These data, taken together with the B.5.2 Reporter’s comments outcome of the reaction (B.2.i.8), provide the Miu iu(1,000,000s) information concerning dechallenge. Not User Guidance: iu/kg iu/kilogram applicable is used in circumstances such as Use for including the reporter’s comments mEq milliequivalent(s) if the patient died or the treatment had been on the diagnosis, causality assessment or % percent completed prior to reaction/event. other issues considered relevant. gtt drop(s) B.4.k.17 Effect of rechallenge (or re- B.5.3 Sender’s diagnosis/syndrome and/or DF dosage form exposure), for suspect drug(s) only reclassification of reaction/event User Guidance: B.4.k.17.1 Did reaction recur on User Guidance: This is the suggested list of units. When readministration? This section provides the sender with an having other measure units, transformation is recommended if possible. Otherwise use the - Yes/no/unknown opportunity to combine signs and symptoms that were reported into a succinct diagnosis free text field. User Guidance: Definition of Interval List and the reasoning would be included in Unknown indicates that a rechallenge was Minutes section B.5.4. done, but it is not known if the event Hours Note concerning transmission: recurred. This segment is not to be completed Days if it is unknown whether a rechallenge was Uncontrolled vocabulary until the Weeks done. controlled vocabulary is fully implemented. Months B.4.k.17.2 If yes to item B.4.k.17.1, which B.5.4 Sender’s comments Years reaction(s)/event(s) recurred? User Guidance: Cyclical Note concerning transmission: This section provides information As necessary Controlled vocabulary to be used when concerning the sender’s assessment of the Total fully implemented. case and may be used to describe B.4.k.18 Relatedness of drug to reaction(s)/ disagreement with and/or alternatives to the Attachment 2 event(s) (repeat B.4.k.18.1 through B.4.k.18.4 diagnoses given by the initial reporter. Route of Administration List as necessary) Note concerning transmission: Auricular (otic) User Guidance: Free text. Buccal This section provides the means to Cutaneous 3. Glossary transmit the degree of suspected relatedness Dental of each drug to the reaction(s)/event(s). The Parent-child/fetus report: Report in which Endocervical repeating items could also be used to provide the administration of medicines to a parent Endosinusial the assessment of relatedness by different results in a suspected reaction/event in a Endotracheal sources or methods of assessment. For the child/fetus. Epidural purpose of reporting, there is a conventional Receiver: The intended recipient of the Extra-amniotic implied suspected causality for spontaneous transmission. Hemodialysis reports. It is recognized that information Reporter: Reporter is primary source of the Intra corpus cavernosum concerning the relatedness, especially for information, i.e., a person who initially Intra-amniotic spontaneous reports, is often subjective and reports the facts. This should be Intra-arterial may not be available. distinguished from the sender of the message, Intra-articular Note concerning transmission: though the reporter could also be a sender. Intra-uterine For subsection B.4.k.18.1, the controlled Sender: The person or entity creating the Intracardiac vocabulary, when fully implemented, should message for transmission. Although the Intracavernous be used. For subsections B.4.k.18.2 through reporter and sender may be the same person, Intracerebral B.4.k.18.4, alpha/numeric data with the function of the sender should not be Intracervical uncontrolled vocabulary should be used. confused with that of the reporter. Intracisternal

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Intracorneal Nutritional Sciences (ASNS) is Infant formulas for use by infants with Intracoronary undertaking an assessment of the low birth-weight are subject to Intradermal scientific basis for the need to establish regulation under 412(h) of the act (21 Intradiscal (intraspinal) Intrahepatic specific recommendations (minimum U.S.C. 350a(h)). Exempt infant formulas Intralesional and maximum levels) for intake by are permitted to have nutrients or Intralymphatic preterm infants of micronutrients, that nutrient levels that are different from Intramedullar (bone marrow) is, the vitamins and minerals specified those that are codified in 21 CFR Intrameningeal in the Federal Food, Drug, and Cosmetic 107.100, if the manufacturer of the Intramuscular Act (the act) and selenium, infant formula can justify the nutrient Intraocular molybdenum, chromium, and fluoride. deviation. The agency believes that Intrapericardial To assist in this task, LSRO/ASNS is some deviations from the nutrient Intraperitoneal Intrapleural inviting the submission of scientific requirements established for term Intrasynovial data and information on this topic and infants may be appropriate to promote Intratumor will provide an opportunity for oral healthy growth and development in low Intrathecal presentations at an open meeting. birth-weight preterm infants. These Intrathoracic DATES: The LSRO will hold a 1-day deviations have yet to be defined. Intratracheal public meeting on this topic on Friday, Consequently, FDA has asked ASNS to Intravenous bolus perform a review to consider whether Intravenous drip March 27, 1998. The meeting will begin Intravenous (not otherwise specified) at 9 a.m. Requests to make oral there is a scientific basis for having Intravesical presentations at the open meeting must different recommendations for Iontophoresis be submitted in writing and received by micronutrients in formulas for low Nasal Friday, February 13, 1998. Hard copies birth-weight preterm infants. Occlusive dressing technique of oral presentations should be FDA is announcing that it has asked Ophthalmic delivered by Friday, March 20, 1998. ASNS, as a task under contract 223–92– Oral 2185, to provide FDA’s Center for Food Oropharyngeal Individuals may submit, in writing, Other scientific data, information, and views Safety and Applied Nutrition with an Parenteral by July 1, 1998. up-to-date review of the nutrient requirements of low birth-weight Periarticular ADDRESSES: The open meeting will be preterm infants, including a review of Perineural held in the Chen Auditorium, Lee Bldg., Rectal the implications of these requirements American Society of Nutritional Respiratory (inhalation) on the need for recommendations for Sciences, 9650 Rockville Pike, Bethesda, Retrobulbar levels of nutrients in formulas for these MD. Written requests to make oral Subconjunctival infants. In response to this request, Subcutaneous presentations of scientific data, ASNS has directed its LSRO to obtain Subdermal information, and views at the open state-of-the-art scientific information on Sublingual meeting should be submitted both to low birth-weight preterm infant nutrient Topical Daniel J. Raiten (address below) and to Transdermal requirements and related scientific the Dockets Management Branch (HFA– Transmammary questions on specifications for preterm 305), Food and Drug Administration, Transplacental infant formula. The LSRO/ASNS will 12420 Parklawn Dr., rm. 1–23, Unknown undertake a study and prepare a Urethral Rockville, MD 20857. Two copies of the documented scientific report that Vaginal scientific data, information, and views summarizes the available information should be submitted to each office. Dated: January 6, 1998. related to these issues. These two copies are to be identified William K. Hubbard, LSRO/ASNS will perform an with the docket number found in Associate Commissioner for Policy assessment of the nutrient requirements brackets in the heading of this Coordination. for infant formulas intended for use by document. [FR Doc. 98–959 Filed 1-14-98; 8:45 am] preterm (low birth-weight) infants that BILLING CODE 4160±01±F FOR FURTHER INFORMATION CONTACT: addresses the following issues: Daniel J. Raiten, Life Sciences (1) What scientific basis is there to Research Office, Federation of specify requirements for micronutrients DEPARTMENT OF HEALTH AND American Societies for in infant formulas intended for use by HUMAN SERVICES Experimental Biology, 9650 low birth-weight preterm infants? The Rockville Pike, Bethesda, MD American Academy of Pediatrics, the Food and Drug Administration 20814-3998, 301–530–7030, or European Society for Pediatric [Docket No. 96N±0391] Linda H. Tonucci, Center for Food Gastroenterology and Nutrition, and the Safety and Applied Nutrition (HFS– Canadian Pediatric Society have Micronutrient Requirements for 456), Food and Drug proposed nutrient requirements for low Preterm Infant Formulas; Administration, 200 C St. SW., birth-weight infants distinct from those Announcement of Study; Request for Washington, DC 20204, 202–205– for term infants. Has scientific Scientific Data and Information; 5372. knowledge advanced to the point to Announcement of Open Meeting SUPPLEMENTARY INFORMATION: FDA has a warrant distinct micronutrient AGENCY: Food and Drug Administration, contract (223–92–2185) with ASNS composition standards for formulas for HHS. concerning the analysis of scientific low birth-weight preterm infants? issues that bear on the safety of foods (2) Micronutrient requirements of ACTION: Notice. and cosmetics. The objectives of this preterm infants fed enteral formulas are SUMMARY: The Food and Drug contract are to provide information to sometimes described according to a first Administration (FDA) is announcing FDA on general and specific issues of or transition stage (between birth and 10 that the Life Sciences Research Office scientific fact associated with the days of age), a stable growing stage (LSRO) of the American Society of analysis of human nutrition. (from about 10 days until discharge

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2405 from the hospital, often 6 to 8 weeks Friday, February 13, 1998. Written Type of Information Collection after birth), and a postdischarge stage requests to make oral presentations of Request: Extension of a currently (from discharge home to approximately scientific data, information, and views approved collection; Title of 1 year). Is there scientific evidence to at the open meeting should be Information Collection: Provider support more than one set of submitted both to Daniel J. Raiten Reimbursement Manual, Part 1— micronutrient requirements for infant (address above) and to the Dockets Chapter 27, Section 2721, 2722 and formulas to support healthy growth and Management Branch (address above). 2725, Request for Exception to ESRD development of the preterm infant at the Two copies of the material to be Composite Rates and Supporting different stages of development? Are the presented must be submitted to each Regulations in 42 CFR 413.170; Form micronutrient requirements for term office on or before March 20, 1998. The No.: HCFA–9044 (OMB# 0938–0296); infant formulas sufficient for thriving open meeting will be held in the Chen Use: Sections 2721, 2722 and 2525 of postdischarge preterm infants? Auditorium, Lee Bldg., ASNS (address the Provider Reimbursement Manual (3) What is the scientific evidence to above). describe the information ESRD facilities support a dietary recommendation for a FDA and ASNS are also inviting must submit in justifying an exception minimum and a maximum quantitative submission of written presentations of request to their composite rate for nutrient concentration for selenium, scientific data, information, and views. outpatient dialysis services.; Frequency: chromium, molybdenum, and fluoride These materials should be submitted on On occasion; Affected Public: Business in preterm infant formulas? What limits or before July 1, 1998. Two copies of the or other for-profit, Not-for-profit of intake would ensure safe and written materials must be submitted to institutions and Federal Government; adequate exposure to these nutrients? Is each office. Number of Respondents: 275; Total there a need to specify the chemical In accordance with its contract with Annual Responses: 275; Total Annual form or other characteristics of these FDA, ASNS will provide the agency Hours: 13,200. nutrients or their sources to ensure with a scientific report on or about To obtain copies of the supporting safety and adequacy? September 30, 1998. statement and any related forms for the (4) Certain micronutrient interactions, Dated: January 6, 1998. proposed paperwork collections such as vitamin E:linoleic acid, vitamin William K. Hubbard, referenced above, access HCFA’s Web B6:protein, and calcium:phosphorus, Site address at http://www.hcfa.gov/ have been identified for full-term Associate Commissioner for Policy Coordination. regs/prdact95.htm, or E-mail your infants which have helped to ensure the request, including your address, phone adequacy of full-term formulas. Are [FR Doc. 98–958 Filed 1–14–98; 8:45 am] BILLING CODE 4160±01±F number, OMB number, and HCFA there micronutrient interactions that can document identifier, to be identified for preterm infants that [email protected], or call the Reports will help to ensure the nutrient Clearance Office on (410) 786–1326. adequacy of infant formulas for this DEPARTMENT OF HEALTH AND Written comments and population? Are there recommended HUMAN SERVICES recommendations for the proposed ratios for metal cations? Is the evidence Health Care Financing Administration information collections must be mailed of interaction between these minerals within 30 days of this notice directly to sufficiently strong to suggest that the [Document Identifier: HCFA±9044] the OMB desk officer: OMB Human ratios should be ensured for the health Resources and Housing Branch, of preterm infants? Agency Information Collection Attention: Allison Eydt, New Executive (5) In an earlier task under this Activities: Submission for OMB Office Building, Room 10235, contract (61 FR 58566, November 15, Review; Comment Request 1996), LSRO/ASNS agreed to investigate Washington, D.C. 20503. whether there is evidence of a benefit to AGENCY: Health Care Financing Dated: January 7, 1998. preterm infants from ingestion of Administration. John P. Burke III, taurine and carnitine, as well as In compliance with the requirement HCFA Reports Clearance Officer, HCFA Office whether there is evidence that would of section 3506(c)(2)(A) of the of Information Services, Information provide a basis for a requirement for Paperwork Reduction Act of 1995, the Technology Investment Management Group, minimal intakes of each of these Health Care Financing Administration Division of HCFA Enterprise Standards. substances. Is there adequate evidence (HCFA), Department of Health and [FR Doc. 98–1064 Filed 1–14–98; 8:45 am] of benefit of other substances not listed Human Services, is publishing the BILLING CODE 4120±03±P in this notice to support a requirement following summary of proposed for their inclusion in preterm infant collections for public comment. formulas? Interested persons are invited to send LSRO/ASNS will use these questions comments regarding this burden DEPARTMENT OF THE INTERIOR as a guide in its investigation. ASNS estimate or any other aspect of this Fish and Wildlife Service will prepare a comprehensive final collection of information, including any report that documents and summarizes of the following subjects: (1) The Endangered and Threatened Species the results of its evaluation. necessity and utility of the proposed Permit Applications FDA and ASNS are announcing that information collection for the proper the LSRO/ASNS expects to hold a performance of the agency’s functions; AGENCY: Fish and Wildlife Service, public meeting on this topic on Friday, (2) the accuracy of the estimated Interior. March 27, 1998. The meeting will begin burden; (3) ways to enhance the quality, ACTION: Notice of receipt of applications. at 9 a.m. It is anticipated that the public utility, and clarity of the information to meeting will be up to 1 day, depending be collected; and (4) the use of The following applicants have on the number of requests to make oral automated collection techniques or applied for permits to conduct certain presentations. Requests to make oral other forms of information technology to activities with endangered species. This presentations at the open meeting must minimize the information collection notice is provided pursuant to section be submitted in writing and received by burden. 10(c) of the Endangered Species Act of

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1973, as amended (16 U.S.C. 1531, et PRT–838059 1 Federal Drive, Fort Snelling, seq.). Applicant: David E. Kamms, Parma, Minnesota 55111–4056. Telephone: (612/725–3536 x224); FAX: (612/725– PRT–838053 Ohio. The applicant requests a permit to 3526). Applicant: Ohio Division of Wildlife, take (salvage dead shells) of the Dated: January 8, 1998. Columbus, Ohio; Michael J. Budzik, following species: clubshell Chief. Matthias A. Kerschbaum, The applicant requests a permit to (Pleurobema clava), cracking Acting Assistant Regional Director, IL, IN, take (capture and breed in captivity) pearlymussel [Hemistena (=Lastena) MO (Ecological Services), Region 3, Fort Snelling, Minnesota. Karner blue butterfly (Lycaeides melissa lata], Curtis’ pearlymussel [Epioblasma samuelis). Capture will occur in Allegan (Dysnomia) florentina curtisi], fanshell [FR Doc. 98–979 Filed 1–14–98; 8:45 am] County, Michigan, and captive breeding [Cyprogenia stegaria (=irrorata)], fat BILLING CODE 4310±55±P will occur at The Toledo Zoological pocketbook [Potamilus (=Proptera) Gardens, Toledo, Ohio. Activities are plenum], Higgins’ eye pearlymussel DEPARTMENT OF THE INTERIOR proposed for the purpose of preparation (Lampsilis higginsi), northern riffleshell (Epioblasma torulosa rangiana), orange- for future reestablishment of Fish and Wildlife Service populations in historical areas of the foot pimple back pearlymussel (Plethobasus cooperianus), pink mucket species’ range for the purpose of Notice of Receipt of Applications for pearlymussel [Lampsilis abrupta survival and enhancement of the species Permit in the wild. (=orbiculata)], purple cat’s paw pearlymussel [Epioblasma (=Dysnomia) The following applicants have PRT–838055 obliquata obliquata (=sulcata sulcata)], applied for a permit to conduct certain Applicant: Ecological Specialists, Inc., ring pink (=golf stick pearly) mussel activities with endangered species. This St. Peters, Missouri; Heidi L. Dunn, (Obovaria retusa), rough pigtoe notice is provided pursuant to Section President. (Pleurobema plenum), tubercled- 10(c) of the Endangered Species Act of The applicant requests a permit to blossom pearlymussel [Epioblasma 1973, as amended (16 U.S.C. 1531, et take (capture and release; relocate) (=Dysnomia) torulosa torulosa), turgid- seq.): Higgins’ eye pearlymussel (Lampsilis blossom pearlymussel [Epioblasma Applicant: The Field Museum, higginsi) and winged mapleleaf mussel (=Dysnomia) turgidula], white cat’s paw Chicago, IL, PRT–838179. (Quadrula fragosa) in Iowa, Minnesota, pearlymussel [Epioblasma (=Dysnomia) The applicant requests a permit to and Wisconsin in the Mississippi River obliquata perobliqua], white wartyback import tissue samples from Cuban and all its tributary rivers. Activities are pearlymussel (Plethobasus cicatricosus), solenodon (Solenodon cubanus) and proposed for the purpose of presence/ and winged mapleleaf mussel Haitian solenodon (Solenodon absence surveys and relocation aimed at (Quadrula fragosa) in the following paradoxus) from the collection of the survival and enhancement of the species states: Illinois, Indiana, Kentucky, Academia de Ciencias de Cuba for the in the wild. Michigan, Ohio, Pennsylvania, and purpose of scientific research. This Wisconsin. Activities are proposed for notice covers activities conducted by PRT–838056 the purpose of scientific research aimed the applicant over a period of five years. at survival and enhancement of the Applicant: Joseph R. Holomuzki, Ohio Applicant: The Field Museum, species in the wild. State University—Mansfield, Mansfield, Chicago, IL, PRT–838206. Ohio. PRT–838062 The applicant requests a permit to re- The applicant requests a permit to export scientific specimens of the red Applicant: Paul R. Burton, Ephraim, take (capture and release) Hungerford’s uakari (Cacajao calvus) borrowed from crawling water beetle (Brychius Wisconsin. The applicant requests a permit to the Swedish Museum of Natural History hungerfordi) in the Cheybogan River for purpose of scientific research. watershed, Michigan. Activities are take (salvage dead specimens; capture, Applicant: College of Veterinary proposed for the purpose of scientific harass by holding and examination, and Medicine, University of Florida, research aimed at survival and release of live specimens) Hine’s Gainesville, FL, PRT–838219. enhancement of the species in the wild. emerald dragonfly (Somatochlora hineana) in Door County, Wisconsin. The applicant requests a permit to PRT–838058 Activities are proposed to document the import plasma samples taken from Applicant: U.S. Army Corps of morphology of the species for the captive-hatched Galapagos tortoise Engineers, Environmental Analysis purpose of survival and enhancement of (Geochelone nigra) at the Charles Branch, Memphis, Tennessee; Kristin J. the species in the wild. Darwin Research Station, Galapagos Pelizza, principal investigator. Written data or comments should be Islands, Ecuador for the purpose of The applicant requests a permit to submitted to the Regional Director, U.S. scientific research. take (capture and release) fat Fish and Wildlife Service, Ecological Applicant: Field Museum of Natural pocketbook [Potamilus (=Proptera) Services Operations, 1 Federal Drive, History, Chicago, IL, PRT–838246. capax], pink mucket pearlymussel Fort Snelling, Minnesota 55111–4056, The applicant requests a permit to [Lampsilis abrupta (=orbiculata)], and and must be received within 30 days of import skin and skeletal material from winged mapleleaf mussel (Quadrula the date of this publication. eight mouse lemurs (Microcebus sp.) fragosa) in the following counties in Documents and other information collected from the wild for the purpose Missouri: Bollinger, Butler, Cape submitted with these applications are of scientific research related to Giradeau, Mississippi, New Madrid, available for review by any party who taxonomic studies. Ripley, Scott, Stoddard, and Wayne. submits a written request for a copy of Applicant: John M. La Sala, Seaford, Activities are proposed to document such documents to the following office NY PRT–838205. presence or absence of the species for within 30 days of the date of publication The applicant requests a permit to the purpose of survival and of this notice: U.S. Fish and Wildlife import the sport-hunted trophy of one enhancement of the species in the wild. Service, Ecological Services Operations, male bontebok (Damaliscus pygargus

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2407 dorcas) culled from a captive herd The applicant requests a permit to U.S.C. 1361 et seq.) the Fish and maintained under the management import a polar bear (Ursus maritimus) Wildlife Service authorized the program of the Republic of South Africa, sport-hunted from the Viscount Melville requested permit subject to certain for the purpose of enhancement of the Sound polar bear population, Northwest conditions set forth therein. survival of the species. Territories, Canada prior to April On October 10, 1997, a notice was Written data or comments should be 30,1994, for personal use. published in the Federal Register, Vol. submitted to the Director, U.S. Fish and Applicant: Thomas Cochran, New 62, No. 197, Page 53016, that an Wildlife Service, Office of Management Castle, PA, PRT–838178 application had been filed with the Fish Authority, 4401 North Fairfax Drive, The applicant requests a permit to and Wildlife Service by the University Room 700, Arlington, Virginia 22203 import a polar bear (Ursus maritimus) of Alaska Museum, Fairbanks, AK for a and must be received by the Director sport-hunted from the Gulf of Boothia permit (PRT–832903) to import within 30 days of the date of this polar bear population, Northwest biological specimens of polar bear publication. Territories, Canada prior to April (Ursus maritimus), walrus (Odobenus The public is invited to comment on 30,1994, for personal use. rosmarus), and sea otter (Enhydra lutris) the following application for permits to Written data or comments, requests for the purpose of scientific research. conduct certain activities with marine for copies of any of these complete Notice is hereby given that on mammals. The application was applications, or requests for a public December 22, 1997, as authorized by the submitted to satisfy requirements of the hearing on these applications should be provisions of the Marine Mammal Marine Mammal Protection Act of 1972, sent to the U.S. Fish and Wildlife Protection Act of 1972, as amended (16 as amended (16 U.S.C. 1361 et seq.) and Service, Office of Management U.S.C. 1361 et seq.) the Fish and the regulations governing marine Authority, 4401 N. Fairfax Drive, Room Wildlife Service authorized the mammals (50 CFR 18). 700, Arlington, Virginia 22203, requested permit subject to certain Applicant: New College of the telephone 703/358–2104 or fax 703/ conditions set forth therein. University of South Florida, Division of 358–2281 and must be received within On October 21, 1997, a notice was Social Sciences, Sarasota, FL, PRT– 30 days of the date of publication of this published in the Federal Register, Vol. 837923. notice. Anyone requesting a hearing 62, No. 203, Page 54648, that an Permit Type: Take for scientific should give specific reasons why a application had been filed with the Fish research. hearing would be appropriate. The and Wildlife Service by Lawrence Name and Number of Animals: holding of such a hearing is at the Epping, Salem, OR, for a permit (PRT– manatee (Trichecus manatus), 2 discretion of the Director. 835236) to import a sport-hunted polar Summary of Activity to be Documents and other information bear (Ursus maritimus) trophy, taken Authorized: The applicant requests a submitted with the application are from the Lancaster Sound population, permit to take two captive manatees for available for review, subject to the Northwest Territories, Canada prior to scientific research of manatee behavior requirements of the Privacy Act and April 30, 1994, for personal use. including, visual acuity, concept Freedom of Information Act, by any Notice is hereby given that on formation, and motor imitation. party who submits a written request for December 12, 1997, as authorized by the Source of Marine Mammals: The a copy of such documents to the above provisions of the Marine Mammal research involves two captive manatees address within 30 days of the date of Protection Act of 1972, as amended (16 housed at Mote Marine Laboratory, publication of this notice. U.S.C. 1361 et seq.) the Fish and Sarasota, FL. Wildlife Service authorized the Period of Activity: Up to 5 years from Dated: January 9, 1998. requested permit subject to certain issuance date of permit, if issued. MaryEllen Amtower, conditions set forth therein. Applicant: University of Florida, Acting Chief, Branch of Permits, Office of On October 10, 1997, a notice was Department of Chemistry, Gainesville, Management Authority. published in the Federal Register, Vol. FL, PRT–837797. [FR Doc. 98–994 Filed 1–14–98; 8:45 am] 62, No. 197, Page 53016, that an Permit Type: Import for Scientific BILLING CODE 4310±55±P application had been filed with the Fish Research. and Wildlife Service by Randy Deeter, Name and Number of Animals: polar Anchorage, AK, for a permit (PRT– bear (Ursus maritimus), 5 samples. DEPARTMENT OF THE INTERIOR 834963) to import a sport-hunted polar Summary of Activity to be bear (Ursus maritimus) trophy, taken Fish and Wildlife Service Authorized: The applicant requests a from the Lancaster Sound population, permit to import ear punch samples Issuance of Permit for Marine Northwest Territories, Canada. The bear surplus to Canadian researchers’ studies Mammals Mr. Deeter hunted was taken from the for the purpose of scientific research Southern Beaufort Sea population. The related to the genetic evolution of polar On May 26, 1997, a notice was original notice was incorrect. bear. published in the Federal Register, Vol. Notice is hereby given that on Source of Marine Mammals: Canada, 62, No. 58, Page 14438, that an December 16, 1997, as authorized by the as described above. application had been filed with the Fish provisions of the Marine Mammal Period of Activity: Up to 5 years from and Wildlife Service by John Hoyer, Protection Act of 1972, as amended (16 issuance date of permit, if issued. Brillion, WI, for a permit (PRT–826773) U.S.C. 1361 et seq.) the Fish and Concurrent with the publication of to import a sport-hunted polar bear Wildlife Service authorized the this notice in the Federal Register, the (Ursus maritimus) trophy, taken from requested permit subject to certain Office of Management Authority is the Northern Beaufort Sea population, conditions set forth therein. forwarding copies of this application to Northwest Territories, Canada for On October 10, 1997, a notice was the Marine Mammal Commission and personal use. published in the Federal Register, Vol. the Committee of Scientific Advisors for Notice is hereby given that on 62, No. 197, Page 53016, that an their review. December 23, 1997, as authorized by the application had been filed with the Fish Applicant: Dean Palmer, provisions of the Marine Mammal and Wildlife Service by Frederick Williamsport, PA, PRT–838172 Protection Act of 1972, as amended (16 Steudler, Jr., Conestoga, PA, for a permit

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(PRT–834952) to import a sport-hunted DEPARTMENT OF THE INTERIOR DEPARTMENT OF THE INTERIOR polar bear (Ursus maritimus) trophy, taken from the McClintock Channel Bureau of Indian Affairs Bureau of Indian Affairs population, Northwest Territories, Proclaiming Certain Lands as Proclaiming Certain Lands as Canada for personal use. Reservation for the Cow Creek Band of Reservation for the Cow Creek Band of Notice is hereby given that on Umpqua Tribe of Indians in Oregon; Umpqua Tribe of Indians in Oregon; December 16, 1997, as authorized by the Notice of Reservation Proclamation Notice of Reservation Proclamation provisions of the Marine Mammal Protection Act of 1972, as amended (16 SUMMARY: The Assistant Secretary— SUMMARY: The Assistant Secretary— U.S.C. 1361 et seq.) the Fish and Indian Affairs proclaimed Indian Affairs proclaimed approximately 4.41 acres as an addition Wildlife Service authorized the approximately 17.46 acres, more or less, to the reservation of the Cow Creek requested permit subject to certain as an addition to the reservation of the Band of Umpqua Tribe of Indians on conditions set forth therein. Cow Creek Band of Umpqua Tribe of December 19, 1997. This notice is Indians on December 19, 1997. This On November 5, 1997, a notice was published in the exercise of authority notice is published in the exercise of published in the Federal Register, Vol. delegated by the Secretary of the Interior authority delegated by the Secretary of 62, No. 214, Page 59876, that an to the Assistant Secretary—Indian the Interior to the Assistant Secretary— application had been filed with the Fish Affairs by 209 DM 8.1. Indian Affairs by 209 DM 8.1. and Wildlife Service by Madeline Kay, FOR FURTHER INFORMATION CONTACT: FOR FURTHER INFORMATION CONTACT: Juniper Hills, CA, for a permit (PRT– Larry E. Scrivner, Bureau of Indian Larry E. Scrivner, Bureau of Indian 835807) to import a sport-hunted polar Affairs, Division of Real Estate Services, Affairs, Chief, Division of Real Estate bear (Ursus maritimus) trophy, taken MS–4510/MIB/Code 220, 1849 C Street, Services, MS–4510/MIB/Code 220, 1849 from the Foxe Basin population, N.W., Washington, D.C. 20240, C Street, N.W., Washington, D.C. 20240, Northwest Territories, Canada prior to telephone (202) 208–7737. telephone (202) 208–7737. April 30, 1994, for personal use. SUPPLEMENTARY INFORMATION: A SUPPLEMENTARY INFORMATION: A Notice is hereby given that on January proclamation was issued according to proclamation was issued according to 6, 1998, as authorized by the provisions the Act of June 18, 1934 (48 Stat. 986; the Act of June 18, 1934 (48 Stat. 986; of the Marine Mammal Protection Act of 25 U.S.C. 467), for the tract of land 25 U.S.C. 467), for the tract of land described below. The land was 1972, as amended (16 U.S.C. 1361 et described below. The land was proclaimed to be an addition to and part seq.) the Fish and Wildlife Service proclaimed to be an addition to and part of the reservation of the Cow Creek of the reservation of the Cow Creek authorized the requested permit subject Band of Umpqua Tribe of Indians for the to certain conditions set forth therein. Band of Umpqua Tribe of Indians for the exclusive use of Indians on that exclusive use of Indians on that On November 5, 1997, a notice was reservation who are entitled to reside at reservation who are entitled to reside at published in the Federal Register, Vol. the reservation by enrollment or tribal the reservation by enrollment or tribal 62, No. 214, Page 59876, that an membership. membership. application had been filed with the Fish Reservation of the Cow Creek Band of and Wildlife Service by Clifford Senter, Reservation of the Cow Creek Band of Umpqua Tribe of Indians, Douglas Umpqua Tribe of Indians, Douglas Plaistow, NH, for a permit (PRT– County, Oregon 835809) to import a sport-hunted polar County, Oregon bear (Ursus maritimus) trophy, taken The following described real property The following described real property from the Lancaster Sound population, is located in the Southeast quarter of is located in the Southwest quarter of Northwest Territories, Canada prior to Section 6 and the Northeast quarter of Section 22 and the Northwest quarter of April 30, 1994, for personal use. Section 7, Township 30 South, Range 5 Section 27, Township 30 South, Range West, W.M., Douglas County, Oregon, Notice is hereby given that on January 5 West, Willamette Meridian, Douglas and contains 4.41 acres, more or less, County, Oregon. 6, 1998, as authorized by the provisions according to plat 94–26163 filed in Beginning at a 5⁄8 inch iron rod that of the Marine Mammal Protection Act of Douglas County, Oregon, on December bears South 86°07′39′′ East 17.65 feet 1972, as amended (16 U.S.C. 1361 et 20, 1994. from the section corner common to seq.) the Fish and Wildlife Service Parcel 2 of Land Partition No. 1994– Section 21, 22, 27, and 28, Township 30 113, Partition Plat Records of Douglas authorized the requested permit subject South, Range 5 West, Willamette County, Oregon. together with an to certain conditions set forth therein. meridian, Douglas County, Oregon; easement 30 feet in width, for road and Documents and other information thence South 86°07′39′′ East 219.44 feet utilities, as set out on Land Partition No. submitted for these applications are to a 3⁄4 inch iron pipe; thence South 1994–113 and as reserved by available for review by any party who 82°38′46′′ East 392.92 feet to a 5⁄8 inch instrument, Recorder’s No. 95–6143, submits a written request to the U.S. iron rod; thence South 41°03′06′′ East Records of Douglas County, Oregon. Fish and Wildlife Service, Office of 577.66 feet to a point marked by a fence Title to the land described above is ° ′ ′′ Management Authority, 4401 North conveyed subject to any valid existing corner post; thence North 62 45 17 East Fairfax Drive, Rm 700, Arlington, easements for public roads and 409.48 feet to a point located in the Virginia 22203. Phone (703) 358–2104 highways, for public utilities and for center of Canyon Creek; thence along or Fax (703) 358–2281. railroads and pipelines and any other said center of Canyon Creek North 15°20′21′′ West 128.62 feet to a point; Dated: January 9, 1998. right-of-way or reservation of record. thence continuing along said center of MaryEllen Amtower, Dated: December 19, 1997. Canyon Creek North 24°13′21′′ West Acting Chief, Branch of Permits, Office of Kevin Gover, 305.60 feet to a point; thence continuing Management Authority. Assistant Secretary—Indian Affairs. along said center of Canyon Creek North [FR Doc. 98–993 Filed 1–14–98; 8:45 am] [FR Doc. 98–975 Filed 1–14–98; 8:45 am] 9°49′21′′ West 491.28 feet more or less BILLING CODE 4310±55±P BILLING CODE 4310±02±P to a point in the center of the South

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Umpqua River; thence along said center Budget, Interior Department Desk during the first week of February 1998. of the South Umpqua River North Officer (1004–NEW), Office of Respondents would be asked to verify 67°55′10′′ West 470.14 feet to a point; Information and Regulatory Affairs, preprinted information about each horse thence continuing along said center of Washington, D.C. 20503. Please send a or burro as accurate or to correct it and the South Umpqua River north copy of your comments to the Bureau of would give information about what 76°26′00′′ West 108.67 feet to a point; Land Management Information happened to the horse or burro and thence leaving said center of the South Clearance Officer (WO–630), 1849 C St., where it is currently located. Those Umpqua River and running South N.W., Mail Stop 401 LS, Washington, individuals who still have their horses 4°50′21′′ West 621.98 feet to a 5⁄8 inch D.C. 20240. would be asked to title them by iron rod; thence North 89°28′50′′ West FOR FURTHER INFORMATION CONTACT: submitting an application for title. The 513.13 feet to a 5⁄8 inch iron rod located Carole Smith, (202) 452–0367, from application requests information about on the easterly right-of-way of County whom a copy of the proposed the animal(s) and the adopter’s name Road Number 35; thence along said emergency collection is available. and address and also requires a certified ° ′ ′′ easterly right-of-way South 0 42 17 NATURE OF COMMENTS: We specifically statement from a veterinarian or other West 160.66 feet to the point of request your comments on the proposed animal professional that the animal or beginning. Containing 17.46 acres, more collection in relation to the following: animals were properly cared for and in or less. (1) Whether the collection of good health. We expect a 30% to 35% Title to the land described above is information is necessary for BLM’s response rate to this mailing. conveyed subject to any valid existing proper functioning, including whether Individuals who did not respond but for easements for public roads and or not the information will have whom letters were not returned by the highways, for public utilities and for practical utility; Postal Service would receive a second railroads and pipelines and any other (2) The accuracy of BLM’s estimate of letter, sent by regular mail. rights-of-way or reservations of record. the burden of collecting the information, The time for reading the letter and Dated: December 19, 1997. including the validity of the preprinted information, verifying and Kevin Gover, methodology and assumptions used; supplying data and getting a certification as to the health of the Assistant Secretary—Indian Affairs. (3) The quality, utility and clarity of animal or animals is estimated at 1 [FR Doc. 98–976 Filed 1–14–98; 8:45 am] the information to be collected; and (4) How to minimize the burden of hour, 15 minutes per response. This BILLING CODE 4310±02±P collecting the information on those who time includes 45 minutes for the are to respond, including using the adopter to fill in the required DEPARTMENT OF THE INTERIOR appropriate automated, electronic, information and 30 minutes for the mechanical, or other forms of veterinarian or other applicable Bureau of Land Management information technology. individual to search his or her records SUPPLEMENTARY INFORMATION: and certify that the animals were [WO±260±1030±2±24 1A] The Wild, Free-Roaming Horse and Burro Act of humanely treated and cared for. The BLM needs this information in Request for Emergency Clearance of December 15, 1971, as amended, places advance of the time frames required by an Information Collection Relating to these animals under BLM’s management a regular information collection in order Wild Horses and Burros and protection. BLM must manage these animals so as to achieve and maintain to meet its data needs and to comply AGENCY: Bureau of Land Management, a thriving, natural ecological balance on with a settlement in Fund for the Interior. the public lands. Maintaining the Animals and Animal Protection League, ACTION: Notice and request for balance requires removing excess Inc. v. Shea. The terms of the settlement comments. animals from the range and offering agreement in this lawsuit require BLM healthy animals for adoption. These to get OMB approval for two forms SUMMARY: In accordance with the animals go to individuals who are relating to maintenance and care and Paperwork Reduction Act of 1995, the qualified to provide humane care and titling of wild horses and burros. The Bureau of Land Management (BLM) proper treatment. If these individuals titling effort associated with this announces that we have requested demonstrate proper treatment and care collection will assist in meeting the emergency approval from the Office of for 1 year, BLM may grant title to not terms and intent of the settlement Management and Budget (OMB) by more than four animals per year to these agreement. January 30, 1998, to collect information individuals. Dated: January 9, 1998. relating to certain wild horses and The regulations at 43 CFR 4750.5 Carole Smith, burros. The BLM needs this information require BLM to issue titles after 1 year to issue title to adopters of wild horses Bureau of Land Management Information to adopters who have held the animals Collection Officer. and burros since 1992 who have not yet for a year and have complied with all received title to the animals. We do not [FR Doc. 98–1011 Filed 1–14–98; 8:45 am] applicable requirements. Since 1992, BILLING CODE 4310±84±M anticipate that collecting this about 2,500 individuals have adopted information will extend beyond the 180- about 4,000 horses but do not have title day maximum permitted by statute. to them. Untitled animals are Federal DEPARTMENT OF THE INTERIOR DATES: Comments on the request for property and subject to BLM’s emergency clearance should be sent as jurisdiction and oversight. This Bureau of Land Management soon as possible. Comments on the information collection would assist proposed collection must be received by these adopters in getting title to the [UT±930±08±1310±00] January 30, 1998, to be assured of animals. AGENCY: Bureau of Land Management, consideration. The collection would be conducted as Utah. ADDRESSES: Mail comments on the follows: BLM would send registered ACTION: Notice of Adoption/Notice of request for emergency clearance directly letters to the approximately 2,500 Availability of Record of Decision. to the Office of Management and adopters at their addresses of record

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SUMMARY: This notice is to advise the described in the FEIS (the USFS The agenda for the RAC meeting will public that the Bureau of Land preferred alternative). include a video conference in the Management (BLM) plans to adopt the Copies of the FEIS are available from morning with the Secretary of the Final Environmental Impact Statement the Ashley National Forest, 355 North Interior and the Director of the Bureau (FEIS) addressing oil and gas leasing for Vernal Avenue, Vernal, Utah, 84078, of Land Management on Standards for lands within Duchesne and Wasatch and Uinta National Forest, 100 West 88 Rangeland Health and Guidelines for Counties, Utah, upon the Ashley and North, Provo, Utah, 84601. Public Livestock Grazing and RAC success Uinta National Forests and of the reading copies are available at the stories. (Other RACs in other States will availability of the BLM’s Record of following BLM locations: Utah State also be included in the video Decision (ROD). Office, 324 South State Street, Salt Lake conference). Additional agenda item in DATES: The public has 30 days from the City, Utah 84111, and Vernal District the afternoon include a briefing on (1) date of this notice to appeal this Office, 170 South 500 East, Vernal, Implementation of the Standards for decision in accordance with the Utah, 84078. Rangeland Health and Guidelines for instructions provided in this Notice. This decision may be appealed to the Livestock Grazing, (2) the Southwest Interior Board of Land Appeals, Office SUPPLEMENTARY INFORMATION: In Strategy and (3) the Automated Lands of the Secretary, in accordance with the accordance with section 102 of the Minerals Records System (ALMRS). National Environmental Policy Act of regulations in 43 CFR part 4. The The meeting will begin on February 1969 (NEPA), a Final Environmental Appellant has the burden of showing 20, 1998 at 8:30 a.m. The meeting is Impact Statement (FEIS) addressing oil the decision appealed from is in error. open to the public. The time for the and gas leasing for lands within If you wish to file a petition for a stay Duchesne and Wasatch Counties upon of the effectiveness of this decision public to address the RAC is on the the Ashley and Uinta National Forests during the time your appeal is being Friday, February 20, 1998, from 3:00 has been prepared by the U.S. Forest reviewed by the Board, the petition for p.m. to 4:00 p.m. The RAC may reduce Service (USFS) and BLM. National and stay must accompany your notice of or extend the end time of 4:00 p.m. local agreements between the two appeal. If you request a stay, you have depending on the number of people agencies identified the USFS as the lead the burden of proof to demonstrate that wishing to address the RAC. The length agency for preparing the analysis with a stay should be granted. of time available for each person to BLM participating as a cooperating FOR FURTHER INFORMATION CONTACT: Jim address the RAC will be established at agency as described in 40 CFR 1501.6. Fouts, Bureau of Land Management, the start of the public comment period The FEIS addresses the potential Utah State Office, P.O. Box 45155, Salt and will depend on how many people impacts of leasing on lands within the Lake City, Utah, 84145–0155, phone there are that wish to address the RAC. Ashley and Uinta National Forests and number 801–539–4044 or Jerry Kenczka, At the completion of the public identifies which areas are available for Bureau of Land Management, Vernal comments the RAC may continue leasing and any stipulations that will be District Office, 170 South 500 East, discussion on its Agenda items. The attached to leases. The two Forest Vernal, Utah, 84078, phone number meeting on February 20, 1998, will be Service Plans have been amended to be 435–781–4494. from 8:30 a.m. to 4:00 p.m. The end consistent with the decisions reached in Dated: January 8, 1998. time of 4:00 p.m. for the meeting may the ROD. The Mineral Leasing Act on G. William Lamb, be changed depending on the work 1920, as amended, provides the State Director. remaining for the RAC. Secretary of the Interior the authority to [FR Doc. 98–1014 Filed 1–14–98; 8:45 am] issue oil and gas leases on lands where FOR FURTHER INFORMATION CONTACT: the oil and gas rights are held by the BILLING CODE 4310±DQ±M Bob Armstrong, New Mexico State Federal Government. This authority has Office, Planning and Policy Team, been delegated to the BLM. The Federal DEPARTMENT OF THE INTERIOR Bureau of Land Management, 1474 Onshore Oil and Gas Leasing Reform Rodeo Road, P.O. Box 27115, Santa Fe, Act of 1987 requires BLM to obtain the Bureau of Land Management New Mexico 87502–0115, telephone consent of the Secretary of Agriculture (505) 438–7436. before issuing oil and gas leases on [NM±910±08±1020±00] National Forest System lands. Authority SUPPLEMENTARY INFORMATION: The New Mexico Resource Advisory purpose of the Resource Advisory to consent has been delegated to Forest Council Meeting Supervisors. council is to advise the Secretary of the In accordance with 40 CFR 1506.3(c). AGENCY: Bureau of Land Management, Interior, through the BLM, on a variety BLM is adopting the FEIS for the Interior. of planning and management issues associated with the management of purpose of issuing oil and gas leases ACTION: Notice of council meeting. within Duchesne and Wasatch Counties public lands. The Council’s of the Ashley and Uinta National SUMMARY: In accordance with the responsibilities include providing Forests. BLM actively participated in Federal Land Policy and Management advice on long-range planning, the preparation of the Draft and Final Act and the Federal Advisory establishing resource management EIS’s and independently reviewed each Committee Act of 1972 (FACA), 5 U.S.C. priorities and assisting the BLM to document. Department of the Interior, as Appendix 1, The Department of the identify State and regional standards for well as public comments and concerns, Interior, Bureau of Land Management rangeland health and guidelines for have been satisfactorily addressed in the (BLM), announces a meeting of the New grazing management. FEIS. The FEIS complies with NEPA Mexico Resource Advisory Council Dated: January 9, 1998 and meets the requirements of the (RAC). The meeting will be held on regulations for implementing the February 20, 1998 at the Bureau of Land Richard A. Whitley, Federal Land Policy and Management Management, New Mexico State Office, Deputy State Director. Act of 1976 (43 CFR part 1600). BLM’s 1474 Rodeo Road, Santa Fe, New [FR Doc. 98–1015 Filed 1–14–98; 8:45 am] preferred alternative is Alternative 3 as Mexico. BILLING CODE 4310±FB±M

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DEPARTMENT OF THE INTERIOR attending interested parties and BLM. to a FOIA request, you must state this The public meeting is not intended to prominently at the beginning of your Bureau of Land Management seek or obtain a consensus on any comment. We will honor your wish to [WO±100±08±1820±00] particular issue. BLM expects the the extent allowed by law. All parties to include representatives of submissions from organizations or Use of Science for Improving Federal, State, and local government businesses, and from individuals Management of Public Lands and agencies; universities; private research identifying themselves as Resources entities; and interested individuals. representatives or officials of The specific purposes of the public organizations or businesses, will be AGENCY: Bureau of Land Management, meeting are to— released in their entirety, including • Interior. Discuss BLM’s current use of names and addresses (or e-mail ACTION: Announcement of public available scientific knowledge and addresses). meeting. information, that is, what information is Electronic Access and Filing Address: BLM currently applying and how does Commenters may transmit comments SUMMARY: The Bureau of Land it enter into decision-making processes; electronically via the Internet to: Management (BLM) will conduct a • Discuss current and future research [email protected]. Please submit public meeting on the use of science for needs, including whether ongoing comments as an ASCII file and avoid the improving the management of the research activities should be adjusted to use of special characters or encryption. Nation’s public lands and resources. meet changing needs and how to Please include the identifier ‘‘Science’’ The public meeting will focus on anticipate future research needs; and in the subject of your message and your science in support of rangeland • Discuss the need for additional name and address in the body of your ecosystem management. The purposes science initiatives. message. of the public meeting are to discuss The public meeting will be conducted BLM’s current use of available scientific as follows: A BLM representative will Dated: January 9, 1998. knowledge and information and to give a 15-minute summary that Tom Fry, obtain public views on current and describes current and planned research Acting Director, Bureau of Land Management. future research needs and on desirable activities. After the summary, the BLM [FR Doc. 98–1034 Filed 1–14–98; 8:45 am] science initiatives. The public meeting representative will lead an interactive BILLING CODE 4310±84±P is part of an ongoing effort to base discussion. If time remains, participants decisions concerning the conservation will have an opportunity to make and use of our public lands and closing remarks. BLM will make a DEPARTMENT OF THE INTERIOR resources on the best available science. transcript of the public meeting and will Bureau of Land Management DATES: BLM will hold the public make the transcript available to meeting on January 26, 1998, from 9:00 interested parties who contact one of the [ID±010±5700±10; IDI±31768] a.m. to 3:00 p.m. local time. individuals listed under FOR FURTHER Submit written comments no later INFORMATION CONTACT. Notice of Realty Action; Recreation than close of business January 30, 1998. II. Public Comment Procedures and Public Purposes (R&PP) Act ADDRESSES: BLM will hold the public Classification in Boise County, Idaho Participation in the public meeting is meeting in Room 7000–B of the not a prerequisite for submittal of AGENCY: Bureau of Land Management, Department of the Interior Building, written comments. BLM invites written Interior. 1849 C Street, NW, Washington, DC. comments from all interested parties. Send written comments to Bureau of ACTION: Classification for recreation and Your written comments should be Land Management, WO–100, 1849 C public purposes lease with option for specific and explain the reason for any Street, NW, Washington, DC 20240. See conveyance of public land in Boise recommendation. BLM appreciates any SUPPLEMENTARY INFORMATION section for County. and all comments, but those most useful electronic access and filing address. and likely to influence decisions on SUMMARY: The following public lands FOR FURTHER INFORMATION CONTACT: BLM’s use of science are those that are adjacent to the community of Idaho Bruce Van Haveren, (303) 236–0161, or either supported by quantitative City, Boise County, Idaho have been John Haugh, (202) 452–5071. information or studies or those that examined and found suitable for lease Individuals who use a include citations to and analyses of with an option for sale upon proper telecommunications device for the deaf applicable laws and regulations. Except development as a public park under the (TDD) may call the Federal Information for comments provided in electronic provisions of the Recreation and Public Relay Service at 1–800–877–8339 format, commenters should submit two Purposes Act, as amended (43 U.S.C. between 8:00 a.m. and 8:00 p.m. Eastern copies of their written comments, where 869 et seq.): time, Monday through Friday, excluding practicable. BLM will not necessarily Boise Meridian, Idaho Federal holidays. consider comments received after the T. 6 N., R. 5 E., section 26; Lots 10 and 14, SUPPLEMENTARY INFORMATION time indicated under the DATES section : part of Lot 13, and NE1⁄4SE1⁄4. or at locations other than that listed in I. Public Meeting Containing 56.93 acres more or less. the ADDRESSES section. In an effort to ensure that BLM bases In the event there is a request under Upon publication of this notice in the its resource management decisions on the Freedom of Information Act (FOIA) Federal Register, the lands will be the best available science, BLM is for a copy of your comments, we intend segregated from all forms of conducting a public meeting on the use to make them available in their entirety, appropriation under the public land of science for improving the including your name and address (or laws, including the general mining laws, management of America’s public lands your e-mail address if you file except for lease or conveyance under and resources. BLM believes that a electronically). However, if you do not the Recreation and Public Purposes Act public meeting will facilitate the want us to release your name and and leasing under the mineral leasing interactive exchange of ideas among the address (or e-mail address) in response laws. Any adverse comments will be

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2412 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices reviewed by the District Manager. In the SUMMARY: This notice announces the of the existing policies and programs. absence of any adverse comments, the availability of a draft general Alternative B is the ‘‘minimum classification will become effective and management plan (GMP) and requirements’’ alternative and describes the land leased to the City of Idaho City environmental impact statement (EIS) those minimum actions that are for a public park. for Oregon Caves National Monument, required for the safe and effective EFFECTIVE DATES: The segregation is Oregon. This notice also announces operation of the park. Included is a effective January 15, 1998. The public open houses for the purpose of 3,310-acre protected area within classification will be effective March 16, receiving comments on the draft adjacent National Forest lands to protect 1998. document. All comments received will cave ecology and the public water become part of the public record and supply. Alternative C (the proposed DATES: Comments must be submitted on copies of comments, including names, action and preferred alternative) or before March 2, 1998. addresses and telephone numbers emphasizes enhanced protection of the ADDRESSES: Comments concerning the provided by respondents, may be monument resources and visitor classification, lease or conveyance released for public inspection. experiences through park-led cave tours, should be sent to: Area Manager, DATES: Comments on the draft GMP/EIS an on-site visitor center in an adaptively Cascade Resource Area, 3948 should be received no later than March reused historic building, establishment Development Ave., Boise, ID 83705. 13, 1998. Public meetings will be held of a caves reservation system, and FOR FURTHER INFORMATION CONTACT: as follows: enhancement of non-motorized trails in Effie Schultsmeier, Cascade Area Realty February 9, 1998, from 2:00 to 4:00 p.m. a protected forest setting. It also Specialist, (208) 384–3357. and from 7:00 to 9:00 p.m. at the provides for increased protection of the SUPPLEMENTARY INFORMATION: This Illinois Valley Senior Center, 520 East cave hydrology, surface forest action is in response to an application River Street, Cave Junction, OR; and environment, and public water supply by the City of Idaho City for a public February 10, 1998, from 2:00 to 4:00 through a 3,310-acre addition to the park. The lands are not needed for p.m. and from 7:00 to 9:00 p.m. at the monument from adjacent National Federal purposes and are needed by the Grants Pass City Council Chambers, Forest lands. Alternative D emphasizes City for a public park. Lease of the lands 101 NW ‘‘A’’ Street, Grants Pass, OR. increased visitor services and recreation will not be authorized until after the ADDRESSES: Comments on the draft opportunities combined with increased classification becomes effective. Lease GMP/EIS should be sent to the watershed protection. A 2,373-acre of the lands for recreational or public Superintendent, Oregon Caves National addition and a 937-acre protected area purpose use would be in the public Monument, 19000 Caves Highway, Cave are also part of the alternative. The draft interest, and will be subject to the Junction, OR 97523. Public reading EIS evaluates the potential following terms, conditions, and copies of the draft GMP/EIS will be environmental impacts associated with reservations: available for review at the following the strategies comprising the four 1. Provisions of the Recreation and locations, as well as other local libraries alternatives. The official responsible for Public Purposes Act and to all around the Oregon Caves National a decision on the proposed action is the applicable regulations of the Secretary Monument area: Office of Public Affairs, Regional Director, Pacific West Region, of the Interior. National Park Service, Department of National Park Service. 2. All valid existing rights the Interior, 18th and C Streets, NW, Dated: January 8, 1998. documented on the official public land Washington, DC 20240, telephone: (202) Charlotte A. Munson, records at the time of lease/patent 208–6843; Columbia Cascades Support Acting Superintendent, Columbia Cascades issuance. Office, National Park Service, Room Support Office. 3. All minerals shall be reserved to 650, 909 First Avenue, Seattle, WA [FR Doc. 98–1018 Filed 1–14–98; 8:45 am] the United States, together with the 98104–1060, telephone: (206) 220–4154; BILLING CODE 4310±70±P right to prospect for, mine, and remove Oregon Caves National Monument, the minerals. 19000 Caves Highway, Cave Junction, 4. Any other reservations that the OR 97523, telephone: (541) 592–2100; DEPARTMENT OF THE INTERIOR authorized officer determines Office of Public Affairs, National Park appropriate to ensure public access and Service, Pacific West Region, 600 National Park Service proper management of Federal lands Harrison Street, Suite 600, San and interests therein. Lease of the lands Francisco, CA 94107–1372, telephone: Glen Echo Park Management Plan/ will not be authorized until after the (415) 427–1300; Technical Information Environmental Assessment classification becomes effective. Center, National Park Service, Denver AGENCY: National Park Service, Interior. Steven W. Moore, Service Center, 12795 W. Alameda ACTION: Notice of scoping meeting/open Acting Cascade Area Manager. Parkway, Denver, CO 80225–0287, house for the Glen Echo Park [FR Doc. 98–1012 Filed 1–14–98; 8:45 am] telephone: (303) 969–2534; Portland Management Plan/Environmental BILLING CODE 4310±GG±M Public Library, 801 SW. 10th Avenue, Assessment. Portland, OR 97205 , telephone: (503) 248–5123. SUMMARY: This notice announces an DEPARTMENT OF THE INTERIOR SUPPLEMENTARY INFORMATION: This draft upcoming scoping meeting/open house GMP/EIS describes and analyzes the for the Glen Echo Park Management Draft General Management Plan/ environmental consequences of four Plan and the intent to publish an Environmental Impact Statement for alternative strategies for guiding future environmental assessment in Oregon Caves National Monument, management of the national monument. association with the management plan. Oregon The major subject areas are natural and DATE AND TIME: Tuesday, February 3, AGENCY: National Park Service. cultural resources, visitor services, and 1998, from 7:00 to 9:00 p.m. park management and operations. ADDRESSES: Clara Barton Community ACTION: Notice of availability of draft Alternative A is the ‘‘no action’’ Center, 7425 MacArthur Boulevard, Environmental Impact Statement. alternative, which means a continuation Cabin John, Maryland.

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The purpose of the scoping meeting/ INTERNATIONAL TRADE significantly affect the relationship open house is to describe the COMMISSION between tax policy and international management planning effort for Glen trade. Echo Park and to solicit concerns about [Investigation 332±389] The Commission will provide its future management of the park. Through Implications for U.S. Trade and report by June 15, 1998. a workshop format the meeting will Competitiveness of a Broad-Based Public Hearing provide an overview of the planning Consumption Tax effort and an opportunity for the public A public hearing in connection with to discuss their concerns with park staff AGENCY: United States International the investigation will be held in the and provide verbal and written Trade Commission Commission hearing room, 500 E Street, SW, Washington, DC 20436, beginning comments. ACTION: Institution of investigation and at 9:30 a.m. on March 5, 1998. All We encourage all who have an scheduling of public hearing. interest in the park’s future to attend or persons have the right to appear by to contact the Park Superintendent by EFFECTIVE DATE: January 8, 1998. counsel or in person to present information and to be heard. Requests to letter or telephone, at George SUMMARY: Following receipt on appear at the public hearing should be Washington Memorial Parkway, c/o December 15, 1997, of a request from filed with the Secretary, United States Turkey Run Park, McLean, Virginia the House Committee on Ways and International Trade Commission, 500 E 22101, telephone number: 703–285– Means (Committee), the Commission Street, SW, Washington, DC 20436 no 2600. instituted investigation No. 332–389, later than COB, February 26, 1998. Dated: January 8, 1998. Implications for U.S. Trade and Prehearing statements should be filed Competitiveness of a Broad-based Audrey F. Calhoun, not later than COB February 26, 1998. Consumption Tax, under section 332(g) Superintendent, George Washington Any posthearing submissions must be of the Tariff Act of 1930 (19 U.S.C. Memorial Parkway. filed not later than COB March 19, 1998. [FR Doc. 98–1017 Filed 1–14–98; 8:45 am] 1332(g)). In the event that, as of COB March 4, BILLING CODE 4310±70±M FOR FURTHER INFORMATION: Information 1998, no witnesses have filed a request on economic aspects of the investigation to appear at the hearing, the hearing will may be obtained from Hugh Arce, Office be canceled. Any person interested in DEPARTMENT OF INTERIOR of Economics (202–205–3234) or attending the hearing as an observer or William Donnelly, Office of Economics non-participant may call the Secretary Keweenaw National Historical Park (202–205–3223), and on legal aspects, Advisory Commission Meeting to the Commission (202–205–1816) after from William Gearhart, Office of the March 4, 1998, to determine whether AGENCY: National Park Service. General Counsel (202–205–3091). The the hearing will be held. ACTION: Notice of meeting. media should contact Margaret O’Laughlin, Office of External Relations Written Submissions SUMMARY: This notice announces an (202–205–1819). Hearing impaired Interested persons are invited to upcoming meeting of the Keweenaw individuals are advised that information submit written statements (one original National Historical Park Advisory on this matter can be obtained by and 14 copies) concerning the matters to Commission. Notice of this meeting is contacting the TDD terminal on (202– be addressed in the report. Commercial required under the Federal Advisory 205–1810). or financial information that a party Committee Act (Public Law 92–463). desires the Commission to treat as Background DATES: February 24, 1998; 8:30 a.m. confidential must be submitted on until 4:30 p.m. The Committee’s letter noted that separate sheets of paper, each clearly ADDRESSES: Keweenaw National there are several proposals to marked ‘‘Confidential Business Historical Park Headquarters, 100 Red significantly reform the current U.S. Information’’ at the top. (Generally, Jacket Road (2nd floor), Calumet, income tax system, including many that submission of separate confidential and Michigan 49913–0471. can be characterized as consumption public versions of the submission would The Chairman’s welcome; minutes of taxes. Examples noted in the letter be appropriate.) All submissions the previous meeting; update on the include a flat tax, a national retail sales requesting confidential treatment must general management plan; update on tax, and a value-added tax. It noted that conform with the requirements of park activities; old business; new a number of studies have examined the § 201.6 of the Commission’s Rules of business; next meeting date; effects of consumption-based taxes on Practice and Procedure (19 CFR 201.6). adjournment. This meeting is open to international trade and found a wide All written submissions, except for the public. range of effects on investment, imports, confidential business information, will FOR FURTHER INFORMATION CONTACT: and exports, depending upon how the be made available in the Office of the Superintendent, Keweenaw National consumption tax is structured. Secretary to the Commission for Historical Park, Frank C. Fiala, P.O. Box As requested by the Committee, the inspection by interested persons. To be 471, Calumet, Michigan 49913–0471, Commission in its report on the assured of consideration by the 906–337–3168. investigation will provide an analysis of Commission, written statements relating SUPPLEMENTARY INFORMATION: The the implications for U.S. trade and to the Commission’s report should be Keweenaw National Historical Park was competitiveness of replacing the current submitted at the earliest practical date established by Public Law 102–543 on income tax system with a broad-based and should be received no later than October 27, 1992. consumption tax. The Commission will March 19, 1998. All submissions should also analyze various consumption tax be addressed to the Secretary, U.S. Dated: January 7, 1998. proposals such as those noted above. In International Trade Commission, 500 E William W. Schenk, addition, the Commission will provide Street SW, Washington, DC 20436. Regional Director, Midwest Region. a review of current economic analyses Persons with mobility impairments [FR Doc. 98–1019 Filed 1–14–98; 8:45 am] on this topic, and a discussion of the who will need special assistance in BILLING CODE 4310±70±P key technical issues that can gaining access to the Commission

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Requests to United States is likely to be materially appear at the hearing should be filed in [FR Doc. 98–966 Filed 1–14–98; 8:45 am] injured by reason of imports of the writing with the Secretary to the BILLING CODE 7020±02±P subject merchandise if the order is Commission on or before May 12, 1998. revoked. Such a request concerning the A nonparty who has testimony that may countervailing duty order on steel wire aid the Commission’s deliberations may INTERNATIONAL TRADE rope from Thailand was filed on June request permission to present a short COMMISSION 30, 1995, by the Committee of Domestic statement at the hearing. All parties and Steel Wire Rope and Specialty Cable [Investigation No. 753±TA±35] nonparties desiring to appear at the Manufacturers of Washington, DC. hearing and make oral presentations Steel Wire Rope From Thailand Participation in the Investigation and should attend a prehearing conference to be held at 9:30 a.m. on May 14, 1998, AGENCY: United States International Public Service List at the U.S. International Trade Trade Commission. Persons wishing to participate in the Commission Building. Oral testimony ACTION: Initiation and scheduling of a investigation as parties must file an and written materials to be submitted at countervailing duty investigation. entry of appearance with the Secretary the public hearing are governed by to the Commission, as provided in SUMMARY: The Commission hereby gives sections 201.6(b)(2), 201.13(f), and section 201.11 of the Commission’s 207.24 of the Commission’s rules. notice of the initiation of countervailing rules, no later than 21 days prior to the duty investigation No. 753–TA–35 Parties must submit any request to hearing date specified in this notice. present a portion of their hearing under section 753(a) of the Tariff Act of Industrial users and (if the merchandise 1930 (19 U.S.C. § 1675b(a)) (the Act) to testimony in camera no later than 7 under investigation is sold at the retail days prior to the date of the hearing. determine whether an industry in the level) representative consumer United States is likely to be materially organizations have the right to appear as Written Submissions injured by reason of imports from parties in Commission countervailing Each party who is an interested party Thailand of steel wire rope, provided for duty investigations. The Secretary will shall submit a prehearing brief to the in subheading 7312.10.90 of the prepare a public service list containing Commission. Prehearing briefs must Harmonized Tariff Schedule of the the names and addresses of all persons, conform with the provisions of section United States, if the countervailing duty or their representatives, who are parties 207.23 of the Commission’s rules; the order on such merchandise is revoked. to this investigation upon the expiration deadline for filing is May 13, 1998. For further information concerning of the period for filing entries of the conduct of this investigation and Parties may also file written testimony appearance. Copies of draft in connection with their presentation at rules of general application, consult the questionnaires will be sent for comment Commission’s Rules of Practice and the hearing, as provided in section to parties who filed an entry of 207.24 of the Commission’s rules, and Procedure, part 201, subparts A through appearance by February 6, 1998. E (19 CFR part 201), and part 207 (19 posthearing briefs, which must conform CFR part 207). Limited Disclosure of Business with the provisions of section 207.25 of the Commission’s rules. The deadline EFFECTIVE DATE: Proprietary Information (BPI) Under an January 5, 1998. for filing posthearing briefs is May 29, FOR FURTHER INFORMATION CONTACT: Jim Administrative Protective Order (APO) and BPI Service List 1998; witness testimony must be filed McClure (202–205–3191), Offce of no later than three days before the Investigations, U.S. International Trade Pursuant to section 207.7(a) of the hearing. In addition, any person who Commission, 500 E Street SW, Commission’s rules, the Secretary will has not entered an appearance as a party Washington, DC 20436. Hearing- make BPI gathered in this investigation to the investigation may submit a impaired persons can obtain available to authorized applicants written statement of information information on this matter by contacting representing interested parties (as pertinent to the subject of the the Commission’s TDD terminal on 202– defined in 19 U.S.C. § 1677(9)) who are investigation on or before May 29, 1998. 205–1810. Persons with mobility parties to the investigation under the On June 24, 1998, the Commission will impairments who will need special APO issued in the investigation, make available to parties all information assistance in gaining access to the provided that the application is made on which they have not had an Commission should contact the Office not later than 21 days prior to the opportunity to comment. Parties may of the Secretary at 202–205–2000. hearing date specified in this notice. A submit final comments on this General information concerning the separate service list will be maintained information on or before June 26, 1998, Commission may also be obtained by by the Secretary for those parties but such final comments must not accessing its internet server (http:// authorized to receive BPI under the contain new factual information and www.usitc.gov or ftp://ftp.usitc.gov). APO. must otherwise comply with section SUPPLEMENTARY INFORMATION: Staff Report 207.30 of the Commission’s rules. All written submissions must conform with Background The prehearing staff report in this the provisions of section 201.8 of the Section 753(a) of the Act provides investigation will be placed in the Commission’s rules; any submissions that, in the case of a countervailing duty nonpublic record on May 6, 1998, and that contain BPI must also conform with order issued under section 303 of the a public version will be issued the requirements of sections 201.6, Act with respect to which the thereafter, pursuant to section 207.22 of 207.3, and 207.7 of the Commission’s requirement of an affrmative the Commission’s rules. rules.

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In accordance with sections 201.16(c) During the first 60 days of this same of information that will enable the and 207.3 of the Commission’s rules, review period, a regular review of this Attorney General to make the required each document filed by a party to the information collection is also being determination. investigation must be served on all other undertaken. All comments and 5. An estimate of the total number of parties to the investigation (as identified suggestions, or questions regarding respondents and the amount of time by either the public or BPI service list), additional information, to include estimated for an average respondent to and a certificate of service must be obtaining a copy of the proposed respond: 10,103 respondents with the timely filed. The Secretary will not information collection instrument with average response at 10.021 hours. accept a document for filing without a instructions, should be directed to: 6. An estimate of the total public certificate of service. Department of Justice, Civil Rights burden (in hours) associated with the Authority: This investigation is being Division, Voting Section, Attention: collection: 47,365 annual burden hours. conducted under authority of title VII of the David H. Hunter, (202) 307–2898, P.O. If additional information is required Tariff Act of 1930; this notice is published Box 66128, Washington, DC 20035. contact: Mr. Robert B. Briggs, Clearance pursuant to section 207.46 of the Comments are encouraged and will be Officer, Information Management and Commission’s rules. accepted until March 16, 1998. Your Security Staff, Justice Management By order of the Commission. comments should address one or more Division, United States Department of Issued: January 8, 1998. of the following four points: Justice, Suite 850, Washington Center Donna R. Koehnke, 1. evaluate whether the proposed Building, 1001 G Street, NW, Secretary. collection of information is necessary Washington, DC, 20530. for the proper performance of the [FR Doc. 98–965 Filed 1–14–98; 8:45am] Dated: January 12, 1998. functions of the agency, including Robert B. Briggs, BILLING CODE 7020±02±P whether the information will have Clearance Officer, United States Department practical utility; of Justice. 2. evaluate the accuracy of the DEPARTMENT OF JUSTICE agency’s estimate of the burden of the [FR Doc. 98–1013 Filed 1–14–98; 8:45 am] proposed collection of information, BILLING CODE 4410±13±M Civil Rights Division including the validity of the methodology and the assumptions used; Agency Information Collection DEPARTMENT OF JUSTICE Activities Proposed Collection; 3. enhance the quality, utility, and Comment Request clarity of the information to be Justice Management Division; Agency collected; and Information Collection Activities: ACTION: Request OMB Emergency 4. evaluate whether the data Existing Collection: Common Request Approval of a Reinstatement, without collection instrument will minimize the change, of a previously approved burden of the collection of information ACTION: Notice of Information Collection collection for which approval has on those who are to respond, including Under Review: Extension of Previously expired. Procedures for the the use of appropriate automated, Approved Collection, Department of Administration of Section 5 of the electronic, mechanical, or other Justice Procurement Blanket Clearance. Voting Rights Act of 1965. technological collection techniques or other forms of information technology, Office of Management and Budget The Department of Justice, Civil e.g., permitting electronic submission of approval is being sought for the Rights Division, has submitted the responses. information collection listed below. following information collection request Overview of this information This collection was previously utilizing emergency review procedures, collection. published in the Federal Register on to OMB for review and clearance in 1. Type of Information Collection. October 31, 1997, allowing for a 60-day accordance with sections Reinstatement, without change, of a public comment period. No comments 1320.13(a)(1)(ii) and (a)(2)(iii) of the previously approved collection for were received by the management and Paperwork Reduction Act of 1995. The which approval has expired. Planning Staff. Civil Rights Division has determined 2. Title of the Form/Collection: The purpose of this notice is to allow that it cannot reasonably comply with Procedures for the Administration of an additional 30 days for public the normal clearance procedures under Section 5 of the Voting Rights Act of comments. Comments are encouraged this Part of the Act because normal 1965. and will be accepted until February 17, clearance procedures are reasonably 3. Agency form number, if any, and 1998. This process is conducted in likely to prevent or disrupt the the applicable component of the accordance with a 5 CFR 3120.10. collection of information. department of Justice sponsoring the Written comments and/or suggestions Therefore, OMB emergency approval collection: Form Number: None. Civil regarding the items contained in this has been requested by January 27, 1998. Rights Division, United States notice, especially regarding the If granted the emergency approval is Department of Justice. estimated public burden and associated only valid for 180 days. All comments 4. Affected public who will be asked response time, should be directed to the and questions pertaining to this pending or required to respond, as well as a brief Office of Management and Budget, request for emergency approval must be abstract: Primary: State, Local, and Office of Information and Regulatory directed to OMB, Office of Information Tribal Government. Other: None. Affairs: Attention: Ms. Victoria and Regulatory Affairs, Attention: Jurisdictions specifically covered under Wassmer, 202–395–5871, Department of Department of Justice Desk Officer (Ms. the Voting Rights Act are required to Justice Desk Officer, Washington, DC Victoria Wassmer), Washington, DC, obtain preclearance from the Attorney 20503. Additionally, comments may be 20503. Comments regarding the General before instituting changes submitted to OMB via facsimile on 202– emergency submission of this affecting voting. They must convince 395–7285. information collection may also be the Attorney General that voting Written comments and suggestions submitted to OMB via facsimile at 202– changes are not racially discriminatory. from the public and affected agencies 395–7285. The procedures facilitate the provision concerning this collection of

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(2) Evaluate the accuracy of the [FR Doc. 98–1000 Filed 1–4–98; 8:45 am] Each LIRP must include, as a agency’s estimate of the burden of the minimum, officials and residents of an BILLING CODE 4410±26±M proposed collection of information, the HA, and a researcher. The roles of each validity of the methodology and of these partners must be equivalent in assumptions used; DEPARTMENT OF JUSTICE terms of decisionmaking. Each proposal (3) Enhance the quality, utility, and must also outline how these clarity of the information to be Office of Justice Programs partnerships will be continued once collected; and Federal funding has concluded. National Institute of Justice (4) Minimize the burden of the Interested organizations should call collection of information on those who [OJP (NIJ)±1147] the National Criminal Justice Reference are to respond, including through the Service (NCJRS) at 1–800–851–3420 to use of appropriate automated, National Institute of Justice obtain a copy of ‘‘Building Safer Public electronic, mechanical, or other Solicitation for Building Safer Public Housing Communities Through Locally technological collection techniques or Housing Communities Through Locally Initiated Research Partnerships, 1998’’ other forms of information technology, Initiated Research Partnerships (refer to document No. SL000243). For e.g., permitting electronic submission of AGENCY: Office of Justice Programs, World Wide Web access, connect either responses. to either NIJ at http:// Comments may also be submitted to National Institute of Justice, Justice. ACTION: Notice of solicitation. www.ojp.usdoj.gov/nij/funding.htm, or the Department of Justice, Justice the NCJRS Justice Information Center at Management Division, Information SUMMARY: Announcement of the http://www.ncjrs.org/fedgrant.htm#nij. Management and Security Staff, availability of the National Institute of Jeremy Travis, Attention: Department Clearance Justice solicitation ‘‘Building Safer Officer, Suite 850, 1001 G Street, NW, Director, National Institute of Justice. Public Housing Communities Through [FR Doc. 98–1043 Filed 1–14–98; 8:45 am] Washington, DC 20530. Additionally, Locally Initiated Research Partnerships, BILLING CODE 4410±18±P comments may be submitted to DOJ via 1998.’’ facsimile on 202–514–1590. DATES: Due date for receipt of proposals Overview of This Collection is close of business March 31, 1998. DEPARTMENT OF JUSTICE (1) Type of Information Collection: ADDRESSES: National Institute of Justice, Office of Justice Programs Extension of Current Collection. 810 Seventh Street, NW, Washington, (2) The title of this form/collection: DC 20531. National Institute of Justice Department of Justice Procurement FOR FURTHER INFORMATION CONTACT: For Blanket Clearance. a copy of the solicitation, please call [OJP(NIJ)±1148] (3) The agency form number, if any, NCJRS at 1–800–851–3420. For general and applicable component of the information about application National Institute of Justice Department sponsoring the collection: procedures for solicitations, please call Solicitation for Evaluation of Victims of Procurement Solicitation Documents, the U.S. Department of Justice Response Crime Act State Compensation and Justice Management Division, Center at 1–800–421–6770. Assistance Programs, 1998 Department of Justice. SUPPLEMENTARY INFORMATION: (4) Affected public who will be asked AGENCY: Office of Justice Programs, or required to respond, as well as a brief Authority National Institute of Justice, Justice. abstract. Primary: Commercial This action is authorized under the ACTION: Notice of Solicitation. organizations and individuals who Omnibus Crime Control and Safe Streets voluntarily submit offers and bids to Act of 1968, §§ 201–03, as amended, 42 SUMMARY: Announcement of the compete for contract awards to provide U.S.C. 3721–23 (1994). availability of the National Institute of supplies and services required by the Justice ‘‘Evaluation of Victims of Crime Background Government. All work statements and Act State Compensation and Assistance pricing data are required to evaluate the The National Institute of Justice (NIJ) Programs, 1998.’’ is calling for proposals to implement contractors bid or proposal. DATES: Due date for receipt of proposals Locally Initiated Research Projects (5) An estimate of the total number of is close of business March 16, 1998. respondents and the amount of time for (LIRP) in Public and Indian Housing an average respondent to respond: 7,462 Authorities. These projects will assist ADDRESSES: National Institute of Justice, respondents, 20 hours average response housing authorities in the evaluation of 810 Seventh Street, NW, Washington, time. efforts to control and prevent drug and DC 20531. (6) An estimate of the total public drug-related crime problems such as FOR FURTHER INFORMATION CONTACT: For burden (in hours) associated with this those supported by the Public Housing a copy of the solicitation, please call collection: 149,240 hours annually. Drug Elimination Program (PHDEP). NCJRS 1–800–851–3420. For general If additional information is required Eight to 12 awards for a total information about application contact: Mr. Robert B. Briggs, Clearance expenditure of up to $975,000 will be procedures for solicitations, please call Officer, United States Department of awarded to proposals that include the the U.S. Department of Justice Response Justice, Information Management and following areas of research: Center 1–800–421–6770.

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SUPPLEMENTARY INFORMATION: without further notice on February 17, securing support. On October 1, 1997, Authority 1998. the FPLS was expanded to include the ADDRESSES: Interested individuals may National Directory of New Hires, a This action is authorized under the comment on this publication by writing database containing information on Omnibus Crime Control and Safe Streets to Robert A. Shapiro, Associate employees recently hired, quarterly Act of 1968, §§ 201–03, as amended, 42 Solicitor, Division of Legislation and wage data on private and public sector U.S.C. 3721–23 (1994). Legal Counsel, 200 Constitution employees, and information on Background Avenue, NW, Room N–2428, unemployment compensation benefits. Washington, DC 20210. All comments On October 1, 1998, the FPLS will be The National Institute of Justice is received will be available for public expanded further to include a Federal calling for proposals for an evaluation of inspection at that address. Case Registry. The Federal Case Registry Victims of Crime Act (VOCA) funded FOR FURTHER INFORMATION CONTACT: will contain abstracts on all participants compensation and assistance programs. involved in child support enforcement These programs have an overall goal of Miriam McD. Miller, Co-Counsel for Administrative Law, Office of the cases. When the Federal Case Registry is providing a seamless web of services instituted, its files will be matched on and support to reduce the financial, Solicitor, Department of Labor, 200 Constitution Avenue, NW, Room N– an ongoing basis against the files in the physical, psychological, and emotional National Directory of New Hires to costs of victimization. One grant of 2428, Washington, DC 20210, telephone (202) 219–8188, ext. 135. determine if an employee is a $750,000 for a 30-month period, will be participant in a child support case SUPPLEMENTARY INFORMATION: awarded to evaluate the effectiveness of Pursuant anywhere in the country. If the FPLS these programs in meeting their goals to section three of the Privacy Act of identifies a person as being a participant and victim needs. 1974 (5 U.S.C. 552a(e)(4)), hereinafter in a State child support case, that State Interested organizations should call referred to as the Act, the Department will be notified of the participant’s the National Criminal Justice Reference hereby publishes notice of a proposed current employer. State requests to the Service (NCJRS) at 1–800–851–3420 to new routine use for the Department’s FPLS for location information will also obtain a copy of ‘‘Evaluation of Victims existing payroll system of records. This continue to be processed after October of Crime Act State Compensation and document supplements this 1, 1998. Assistance Programs’’ (refer to Department’s last publication in full of When individuals are hired by the document no. SL000242). For World all of its Privacy Act systems of records. Department of Labor, we may disclose Wide Web access, connect to either NIJ On September 23, 1993, in Volume 58 to the FPLS their names, social security at http://www.ojp.usdoj.gov/nij/ at Page 49548 of the Federal Register, numbers, home addresses, dates of funding.htm, or the NCJRS Justice we published a notice containing 138 birth, dates of hire, and information Information Center at http:// systems of records which were identifying us as the employer. We also www.ncjrs.org/fedgrant.htm#nij. maintained under the Act. Subsequent may disclose to FPLS names, social Jeremy Travis, publications of new systems were made security numbers, and quarterly Director, National Institute of Justice. on April 15, 1994 (59 FR 18156)(two earnings of each Department of Labor new systems); on May 10, 1995 (60 FR [FR Doc. 98–1042 Filed 1–14–98; 8:45 am] employee, within one month of the end 24897)(one new system); and on June of the quarterly reporting period. BILLING CODE 4410±18±P 15, 1995 (60 FR 31495)(one new Information submitted by the system); April 7, 1997 (62 FR Department of Labor to the FPLS will be 16610)(one new system); and on disclosed by the Office of Child Support DEPARTMENT OF LABOR October 14, 1997 (62 FR 53343) (one Enforcement to the Social Security new system). Office of The Secretary Administration for verification to ensure The Department hereby proposes to that the social security number provided Privacy Act of 1974; Proposed New amend an existing system of records, is correct. The data disclosed by the Routine Use To an Existing System of DOL/OCFO–1, Attendance, Leave and Department of Labor to the FPLS will Records Payroll File, so that a new Routine Use also be disclosed by the Office of Child can be established. Pursuant to Pub. L. Support Enforcement to the Secretary of AGENCY: Office of the Secretary, Labor. 104–193, the Personal Responsibility the Treasury for use in verifying claims ACTION: Notice and request for and Work Opportunity Reconciliation for the advance payment of the earned comments. Act of 1996, this Department will income tax credit or to verify a claim of disclose data from this system to the employment on a tax return. SUMMARY: In accordance with the Office of Child Support Enforcement, We are also making various minor Privacy Act of 1974 (5 U.S. C. Admininstration for Children and grammatical corrections to this system. 552a(e)(11)), the Department of Labor is Families, U.S. Department of Health and The names of agencies within the issuing notice of our intent to amend the Human Services for use in the National category for System Location are being system of records entitled, DOL/OFO–1, Database of New Hires, part of the updated. In the Records Category, two Attendance, Leave, and Payroll File, to Federal Parent Locator System (FPLS) commas are being added, and two include a new routine use. The and Federal Tax Offset System, DHHS/ grammatical corrections are being made. disclosure is required by the Personal OCSE No. 09–90–0074. A description of Finally, two grammatical corrections are Responsibility and Work Opportunity the Federal Parent Locator Service may being made in the category for Purpose. Reconciliation Act (PRWORA, Pub.L. be found at 62 FR 51663 (October 2, 104–193). We invite public comment on 1997). Universal Routine Uses this publication. FPLS is a computerized network In its September 23, 1993 publication, DATES: Persons wishing to comment on through which States may request the Department gave notice of eleven the proposed routine use must do so by location information from Federal and paragraphs containing routine uses February 17, 1998. State agencies to find non-custodial which apply to all of its systems of Effective date: The proposed routine parents and/or their employers for records, except for DOL/OASAM–5 and use will become effective as proposed purposes of establishing paternity and DOL/OASAM–7. These eleven

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Disclosure may be made to any 15, 1994 document in order to correct therefore deemed by the agency to be for source from which information is grammatical mistakes in the September a purpose that is compatible with the requested in the course of a law 23, 1993 version. In the May 10, 1995, purpose for which the agency collected enforcement or grievance investigation, June 15, 1995 and April 7, 1997 the records. or in the course of an investigation publication, the General Prefatory 3. When a record on its face, or in concerning retention of an employee or Statement was republished as a conjunction with other records, other personnel action, the retention of convenience to the reader of the indicates a violation or potential a security clearance, the letting of a document. In an October 14, 1997 violation of law, whether civil, criminal contract, the retention of a grant, or the publication, the General Prefatory or regulatory in nature, and whether retention of any other benefit, to the Statement was again republished in arising by general statute or particular extent necessary to identify the order to make a syntactical change to program statute, or by regulation, rule, individual, inform the source of the paragraph 10. We are again republishing or order issued pursuant thereto, purpose(s) of the request, and identify the General Prefatory Statement as a disclosure may be made to the the type of information requested. appropriate agency, whether Federal, convenience to the reader. 9. Disclosure may be made to a The public, the Office of Management foreign, State, local, or tribal, or other Federal, State, local, foreign, or tribal or and Budget (OMB), and the Congress are public authority responsible for other public authority of the fact that invited to submit written comments on enforcing, investigating or prosecuting this system of records contains the proposed new routine use. A report such violation or charged with enforcing information relevant to the hiring or on the proposed amendment to DOL/ or implementing the statute, or rule, retention of an employee, the granting OCFO–1 has been provided to OMB and regulation, or order issued pursuant or retention of a security clearance, the to the Congress as required by OMB thereto, if the information disclosed is Circular A–130, Revised, and 5 U.S.C. relevant to any enforcement, regulatory, letting of a contract, a suspension or 552a(r). investigative or prosecutive debarment determination or the responsibility of the receiving entity, issuance or retention of a license, grant, General Prefatory Statement and by careful review, the agency or other benefit. The following routine uses apply to determines that the records are both 10. A record from any system of and are incorporated by reference into relevant and necessary to the litigation records set forth below may be disclosed each system of records published below and the use of such records is therefore to the Office of Management and Budget unless the text of a particular notice of deemed by the agency to be for a in connection with the review of private a system of records indicates otherwise. purpose that is compatible with the relief legislation and the legislative These routine uses do not apply to DOL/ purpose for which the agency collected coordination and clearance process. OASAM–5, Rehabilitation and the records. 11. Disclosure may be made to a debt Counseling File, nor to DOL/OASAM–7, 4. A record from this system of collection agency that the United States Employee Medical Records. records may be disclosed to a Member has contracted with for collection 1. It shall be a routine use of the of Congress or to a Congressional staff services to recover debts owed to the records in this system of records to member in response to an inquiry of the United States. disclose them to the Department of Congressional office made at the written Publication of a Proposed Amendment Justice when: (a) The agency or any request of the constituent about whom component thereof; or (b) any employee the record is maintained. Accordingly, DOL/OCFO–1, of the agency in his or her official 5. Records from this system of records Attendance, Leave, and Payroll File, a capacity where the Department of may be disclosed to the National system notice recently amended at 62 Justice has agreed to represent the Archives and Records Administration or FR 16614 (April 7, 1997), is further employee; or (c) the United States to the General Services Administration amended by amending the category for Government, is a party to litigation or for records management inspections Routine Uses, by adding a new has an interest in such litigation, and by conducted under 44 U.S.C. 2904 and paragraph of routine use at the end of careful review, the agency determines 2906. the existing text, to be designated as that the records are both relevant and 6. Disclosure may be made to agency paragraph F., to read as set forth below. necessary to the litigation and the use of contractors, or their employees, For the convenience of the reader, the such records by the Department of consultants, grantees, or their newly revised system is being published Justice is therefore deemed by the employees, or volunteers who have been in full as follows: agency to be for a purpose that is engaged to assist the agency in the compatible with the purpose for which performance of a contract, service, grant, DOL/OCFO±1 the agency collected the records. cooperative agreement or other activity SYSTEM NAME: 2. It shall be a routine use of the related to this system of records and records in this system of records to who need to have access to the records Attendance, Leave, and Payroll File. disclose them in a proceeding before a in order to perform the activity. SECURITY CLASSIFICATION: court or adjudicative body, when: (a) Recipients shall be required to comply The agency or any component thereof; with the requirements of the Privacy Act None. or (b) any employee of the agency in his of 1974, as amended, 5 U.S.C. 552a; see SYSTEM LOCATION: or her official capacity; or (c) any also 5 U.S.C. 552a(m). employee of the agency in his or her 7. The name and current address of an A. Offices in Washington, D.C.: individual capacity where the agency individual may be disclosed from any 1. Office of the Secretary of Labor, has agreed to represent the employee; or system of records to the parent locator including:

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a. Office of the Assistant Secretary for number of regular, overtime, holiday, and transmittal of computer tape data to Administration and Management, Sunday, and other hours worked, pay appropriate State and local governments (OASAM); period number and ending date, cost of for their benefits matching projects. b. Office of the Solicitor of Labor; living allowances, co-owner and/or Transmittal of employee’s name, social c. Office of Public Affairs; beneficiary of bonds, marital status, security number, salary history to state d. Bureau of International Labor number of dependents, mailing address, unemployment insurance agencies in Affairs; ‘‘Notification of Personnel Action’’, and order to facilitate the processing of state e. Employees’ Compensation Appeals claims by the employee for overtime, for unemployment insurance claims for Board; back wages and for waivers. Consumer DOL employees. f. Wage Appeals Board; credit reports of individuals indebted to B. Pursuant to section 13 of the Debt g. Benefits Review Board; the United States, correspondence to Collection Act of 1982, the name, Social h. Office of Administrative Law and from the debtor, information or Security Number, address(es), telephone Judges; records relating to the debtor’s current number(s), and nature, amount and i. Pension Benefit Guaranty whereabouts, assets, liabilities, income history of the debt of a current or former Corporation; and expenses, debtor’s personal employee may be disclosed to private j. President’s Committee on the financial statements and other collection agencies for the purpose of Employment of People with Disabilities; information such as the nature, amount collecting or compromising a debt k. National Occupational Information and history of a debt owed by an existing in this system. Coordinating Committee; individual covered by this system, and C. Department of Justice and General l. National Commission for other records and reports relating to the Accounting Office: Information may be Employment Policy; implementation of the Debt Collection forwarded to the General Accounting m. Veteran’s Employment and Act of 1982, including any investigative Office and/or the Department of Justice Training Service. reports or administrative review as prescribed in the Joint Federal Claims 2. Bureau of Labor Statistics; matters. The individual records listed Collection Standards (4 CFR Chapter II). 3. Employment Standards herein are included only as pertinent or When debtors fail to make payment Administration, including the Office of applicable to the individual employee. through normal collection routines, the Labor-Management Standards and the files are analyzed to determine the Office of Labor-Management Programs; AUTHORITY FOR MAINTENANCE OF THE SYSTEM: feasibility of enforced collection by 4. Employment and Training 31 U.S.C. 66(A). referring the cases to the Department of Administration; Justice for litigation. 5. Occupational Safety and Health PURPOSE(S): D. Other Federal Agencies: Administration; In compliance with principles and (1) Pursuant to sections 5 and 10 of 6. Mine Safety and Health standards prescribed by the Comptroller the Debt Collection Act of 1982, Administration; General, this system manages the information relating to the 7. Office of the Inspector General; Department of Labor’s compensation implementation of the Debt Collection 8. Pension and Welfare Benefits and benefits processing, accounting, and Act of 1982 may be disclosed to other Administration; and reporting. The system provides control Federal Agencies to effect salary or 9. The Chief Financial Officer for the procedures and systems to assure the administrative offsets, or for other Department. complete and timely processing of input purposes connected with the collection B. Regional and Area Offices of the documents and output reports necessary of debts owed to the United States. above. to update and maintain the (2) A record from this system may be C. Timekeepers. Department’s Interactive Payroll disclosed to a Federal Agency in System. response to its request in connection CATEGORIES OF INDIVIDUALS COVERED BY THE with the hiring/retention of an SYSTEM: ROUTINE USES OF RECORDS MAINTAINED IN THE employee, the letting of a contract, or Department of Labor employees. SYSTEM, INCLUDING CATEGORIES OF USERS AND the issuance of a grant, license, or other THE PURPOSES OF SUCH USES: benefit by the requesting agency, to the CATEGORIES OF RECORDS IN THE SYSTEM: A. Transmittal of data to the U.S. extent that the information is necessary Name, social security number and Treasury to effect issuance of paychecks and relevant to the requesting agency’s employee number, grade, step, and or electronic fund transfers (EFT) to decision on the matter. salary, organization (code), retirement or employees and distribution of pay E. Internal Revenue Service: FICA data as applicable. Federal, State, according to employee directions for (1) Information contained in the and local tax deductions, as appropriate. savings bonds, allotments to financial system of records may be disclosed to IRS tax lien data, savings bond and institutions, and other authorized the Internal Revenue Service to obtain charity deductions; regular and optional purposes. Transmittal of Thrift Savings taxpayer mailing addresses for the government life insurance deduction(s), Plan data to the Thrift Savings Board to purpose of locating such taxpayer to health insurance deduction and plan or effect contributions to the Thrift Savings collect, compromise, or write-off a code; cash award data; jury duty data, Plan. Tax withholding data sent to the Federal claim against the taxpayer. military leave data, pay differentials, Internal Revenue Service and (2) Information may be disclosed to union dues deductions, allotments by appropriate State and local taxing the Internal Revenue Service concerning type and amount, Thrift Savings Plan authorities, FICA deductions to the the discharge of an indebtedness owed contributions, financial institution code Social Security Administration, dues by an individual. and employee account number, leave deductions to labor unions, F. The names, social security status and data of all types (including withholdings for health insurance to numbers, home addresses, dates of annual, compensatory, jury duty, insurance carriers and the Office of birth, dates of hire, quarterly earnings, maternity, military, retirement, Personnel Management, charity employer identifying information, and disability, sick, transferred, and without deductions to agents of charitable State of hire of employees may be pay), time and attendance records, institutions, annual W–2 statements to disclosed to the Office of Child Support including flexitime log sheets indicating taxing authorities and the individual, Enforcement, Administration for

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Children and Families, Department of SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS addressee section below on or before Health and Human Services for the OF THE ACT: March 16, 1998. The Department of purpose of locating individuals to None. Labor is particularly interested in establish paternity, establishing and Signed at Washington, DC, this 9th day of comments which: modifying orders of child support, January 1998. • evaluate whether the proposed identifying sources of income, and for Alexis M. Herman, collection of information is necessary other child support enforcement actions Secretary of Labor. for the proper performance of the as required by the Personal [FR Doc. 98–1033 Filed 1–14–98; 8:45 am] functions of the agency, including Responsibility and Work Opportunity BILLING CODE 4510±23±P whether the information will have Reconciliation Act (Welfare Reform law, practical utility; Pub. L. 104–193). • evaluate the accuracy of the agency’s estimate of the burden of the DISCLOSURE TO CONSUMER REPORTING DEPARTMENT OF LABOR AGENCIES: proposed collection of information, Employment and Training including the validity of the The amount, status, and history of Administration methodology and assumptions used; overdue debts, the name and address, • enhance the quality, utility, and taxpayer identification number (SSN), Proposed Collection; Welfare-to-Work clarity of the information to be and other information necessary to Solicitation for Grant Applications collected; and establish the identity of a debtor, the Comment Request • minimize the burden of the agency and program under which the collection of information on those who January 9, 1998. claim arose, are disclosed pursuant to 5 are to respond, including through the ACTION: Notice. U.S.C. 552a(b)(12) to consumer use of appropriate automated, reporting agencies as defined by section SUMMARY: electronic, mechanical, or other 603(f) of the Fair Credit Reporting Act The Department of Labor, as part of its continuing effort to reduce technological collection techniques or (15 U.S.C. 1681a(f)), in accordance with other forms of information technology, section 3(d)(4)(A)(ii) of the Federal paperwork and respondent burden conducts a preclearance consultation e.g., permitting electronic submission of Claims Collection Act of 1966, as responses. amended (31 U.S.C. 3711(f)) for the program to provide the general public ADDRESSES: purpose of encouraging the repayment and Federal agencies with an U.S. Department of Labor, of an overdue debt. opportunity to comment on proposed Employment and Training and/or continuting collections of Administration, ATTENTION: Cheryl POLICIES AND PRACTICES FOR STORING, information in accordance with the Turner, 200 Constitution Avenue, N.W., RETRIEVING, ACCESSING, RETAINING, AND Paperwork Reduction Act of 1995 Room S–5513, Washington, D.C. 20210, DISPOSING OF RECORDS IN THE SYSTEM: (PRA95) [44 U.S.C. 3506(c)(2)(A)]. This 202–219–0181 extension 139 (this is not STORAGE: program helps ensure that requested a toll free number) or by fax at 202–219– Manual and machine-readable files. data can be provided in the desired 0376. format, reporting burden (time and SUPPLEMENTARY INFORMATION: RETRIEVABILITY: financial resources) is minimized, By name and SSN. collection instruments are clearly I. Background understood, and the impact of collection SAFEGUARDS: The Balanced Budget Act of 1997, requirements on respondents can be signed by the President on August 5, Personnel screening and locked properly assessed. 1997, authorized the Department of storage equipment. Currently, the Employment and Labor to provide Welfare-to-Work RETENTION AND DISPOSAL: Training Administration is soliciting (WtW) grants to States and local comments concerning the proposed Retained until after GAO audit. communities to provide transitional extension collection of the Solicitation Records are then disposed of, or retired, employment assistance to move for Grant Applications (SGA) for the according to specified agency/GRS Temporary Assistance for Needy Welfare-to-Work (WtW) Competitive records schedules. Families (TANF) recipients with Grants. This SGA was published in the significant employment barriers into SYSTEM MANAGER(S) AND ADDRESS: Federal Register on December 30, 1997 unsubsidized jobs providing long-term See the appropriate Agency Official in Under OMB approval number 1205– employment opportunities. Under the attached and at 29 CFR 70a.43. 0387 (Please note that, due to a WtW grants program, 25% of funds not typographical error, the OMB approval allocated by the formula grants (to the NOTIFICATION PROCEDURE: number appeared in the SGA as ‘‘1205– States) will be provided through As in system manager and address. 1387’’. This clearance number is competitive grants to local governments, incorrect). A copy of the proposed RECORD ACCESS PROCEDURES: PICs, and private entities. In order to information collection request (ICR) can As in system manager and address. receive competitive grant funds, the be obtained by contacting the office statute provides that the public or CONTESTING RECORD PROCEDURES: listed in the addressee section of this private entity must submit an As in system manager and address. notice. Comments will be used to application in conjunction with the influence the development of future applicable PIC or political subdivision. RECORD SOURCE CATEGORIES: WtW solicitations for grant applications. Employees, supervisors, timekeepers, The SGA published in the Federal II. Current Actions official personnel records, the IRS, Register on December 30, 1997 will not Need for continuing an existing consumer credit reports, personal be modified in any way. collection of information. financial statements, correspondence DATES: Written comments on the WtW Type of Review: Extension (without with the debtor, records relating to SGA published in the Federal Register change) hearings on the debt, and from other on December 30, 1997 must be Agency: Employment and Training DOL systems of records. submitted to the office listed in the Administration

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Title: Welfare-to-Work Competitive Frank Frodyma at the address provided ADDRESSES: Interested parties are Grants; Solicitation for Grant below. Any such submissions received invited to submit written comments to Application prior to the meeting will be provided to Mr. James L. Baylen at the National OMB Number: 1205–0387 the members of the Committee and will Credit Union Administration, 1775 Affected Public: Public and private be included in the record of the Duke Street, Alexandria, VA 22314– entities meeting. Because of the need to cover a 3428; Fax No. 703–518–6433. Total Respondents: 600 wide variety of subjects in a short FOR FURTHER INFORMATION CONTACT: Frequency: Annually period of time, there is usually Copies of the information collection Total Responses: 600 insufficient time on the agenda for requests, with applicable supporting Average time per response: 20 members of the public to address the documentation, may be obtained by Estimated Total Burden Hours: 12,000 committee orally. However, any such calling the NCUA Clearance Officer, Total Burden Cost (capital/startup): requests will be considered by the Chair James L. Baylen, (703) 518–6411. $480,000 who will determine whether or not time SUPPLEMENTARY INFORMATION: Proposal Total Burden Cost (operating/ permits. Any request to make an oral maintaining): Comments submitted in to revise the following currently presentation should state the amount of approved collections of information: response to this request will be time desired, the capacity in which the summarized and considered for use in OMB Number: 3133–0004. person would appear, and a brief Form Number: NCUA 5300 and future SGAs; they will also become a outline of the content of the matter of public record. NCUA 5300S presentation. Individuals with Type of Review: Revision to a Dated: January 9, 1998. disabilities who need special currently approved collection. Dennis Lieberman, accommodations should contact Title: Semiannual and Quarterly Acting Director, Welfare to Work Grants Theresa Berry (phone: 202–219–8615, Financial and Statistical Report. Implementation Team. extension 106; FAX: 202–219–5986) one Description: The financial and [FR Doc. 98–1031 Filed 1–14–98; 8:45 am] week before the meeting. statistical information collected is An official record of the meeting will BILLING CODE 4510±30±M essential to NCUA in carrying out its be available for public inspection in the responsibility for supervising federal OSHA Technical Data Center (TDC) credit unions. The information also DEPARTMENT OF LABOR located in Room N2625 of the enables NCUA to monitor all federally Department of Labor Building (202– insured credit unions whose share Occupational Safety and Health 219–7500). For additional information accounts are insured by the National Administration; National Advisory contact: Frank Frodyma, Acting Director Credit Union Share Insurance Fund. Committee on Occupational Safety and of Policy, Occupational Safety and Respondents: All credit unions. Health; Notice of Meeting Health Administration (OSHA); Room Estimated No. of Respondents/ N–3641, 200 Constitution Avenue, NW., Recordkeepers: 11,500. Notice is hereby given of the date and Washington, DC 20210 (phone: 202– Estimated Burden Hours Per location of the next meeting of the 219–8021, extension 102; FAX: 202– Response: 8. National Advisory Committee on 219–4383; e-mail frank.frodyma@osha- Frequency of Response: Quarterly and Occupational Safety and Health no.osha.gov). semi-annually. (NACOSH), established under section Signed at Washington, DC, this 9th day of Estimated Total Annual Burden 7(a) of the Occupational Safety and January, 1998. Hours: 204,800. Health Act of 1970 (29 U.S.C. 656) to Charles N. Jeffress, Estimated Total Annual Cost: 0. advise the Secretary of Labor and the OMB Number: 3133–0067. Secretary of Health and Human Services Assistant Secretary of Labor for Occupational Safety and Health. Form Number: NCUA 5310. on matters relating to the administration Type of Review: Revision to a of the Act. NACOSH will hold a meeting [FR Doc. 98–1032 Filed 1–14–98; 8:45 am] currently approved collection. on February 12, 1998, in Room N3437 BILLING CODE 4510±26±M Title: Corporate Credit Union Monthly A–C of the Department of Labor Call Report. Building located at 200 Constitution Description: NCUA utilizes the Avenue, NW., Washington, DC. The NATIONAL CREDIT UNION information to monitor financial meeting is open to the public and will ADMINISTRATION conditions in corporate credit unions, begin at 9:00 a.m. lasting until and to allocate supervision and Agency Information Collection approximately 4:30 p.m. examination resources. The respondents Activities: Proposed Collection; Agenda items will include: A brief are corporate credit unions, or ‘‘banker’s Comment Request overview of current activities in the banks’’ for natural person credit unions. Occupational Safety and Health AGENCY: National Credit Union Respondents: Corporate credit unions. Administration (OSHA) and the Administration (NCUA). Estimated No. of Respondents/ Recordkeepers: 40. National Institute for Occupational ACTION: Request for comment. Safety and Health (NIOSH), a discussion Estimated Burden Hours Per of incentive and disciplinary programs SUMMARY: The NCUA intends to submit Response: 1.44. in the workplace, updates on the CCP the following revisions to currently Frequency of Response: Monthly. Estimated Total Annual Burden implementation and 11(c) task force, a approved collections to the Office of Management and Budget (OMB) for Hours: 960. report on the ergo stakeholder meetings, Estimated Total Annual Cost: 0. discussion of OSHA’s multiple review and clearance under the definitions of and criteria for safety and Paperwork Reduction Act of 1995 (Pub. By the National Credit Union health programs as well as reports from L. 104–13, 44 U.S.C. Chapter 35). These Administration Board on January 8, 1998. NACOSH’s workgroups. information collections are published to Becky Baker, Written data, views or comments for obtain comments from the public. Secretary of the Board. consideration by the committee may be DATES: Comments will be accepted until [FR Doc. 98–967 Filed 1–14–98; 8:45 am] submitted, preferably with 20 copies, to March 16, 1998. BILLING CODE 7535±01±U

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NATIONAL CREDIT UNION NATIONAL SCIENCE FOUNDATION NUCLEAR REGULATORY ADMINISTRATION COMMISSION Notice of Permits Issued Under the Community Development Revolving Antarctic Conservation Act of 1978 Agency Information Collection Activities: Proposed Collection; Loan Program for Credit Unions AGENCY: National Science Foundation. Comment Request ACTION: Notice of permits issued under AGENCY: National Credit Union the Antarctic Conservation Act of 1978, AGENCY: U.S. Nuclear Regulatory Administration. Public Law 95–541. Commission (NRC). ACTION: Notice of application period. ACTION: Notice of pending NRC action to SUMMARY: The National Science submit an information collection Foundation (NSF) is required to publish SUMMARY: The National Credit Union request to OMB and solicitation of notice of permits issued under the Administration (NCUA) will accept public comment. Antarctic Conservation Act of 1978. applications for participation in the This is the required notice. SUMMARY: The NRC is preparing a Community Development Revolving FOR FURTHER INFORMATION CONTACT: submittal to OMB for review of Loan Program for Credit Unions Nadene G. Kennedy or Joyce Jatko continued approval of information throughout calendar year 1998, subject Permit Office, Office of Polar Programs, collections under the provisions of the to availability of funds. Application Rm. 755, National Science Foundation, Paperwork Reduction Act of 1995 (44 procedures for qualified low-income 4201 Wilson Boulevard, Arlington, VA U.S.C. Chapter 35). credit unions are set forth in part 705, 22230. Information pertaining to the NCUA Rules and Regulations, 12 CFR SUPPLEMENTARY INFORMATION: On requirement to be submitted: Part 705. November 29, 1997, the National 1. The title of the information DATES: Applications may be submitted Science Foundation published a notice collection: NRC Form 366, ‘‘Licensee throughout calendar year 1998. in the Federal Register of a waste Event Report’’. management permit application 2. Current OMB approval number: ADDRESSES: Applications for received. A permit was issued on 3150–0104. participation may be obtained from and December 24, 1997 to the following 3. How often the collection is should be submitted to: NCUA, Office of applicant: Red Whittaker, Permit required: On occasion. Community Development Credit #98WM–1. 4. Who is required or asked to report: Unions, 1775 Duke Street, Alexandria, Nadene G. Kennedy, Holders of operating licenses for VA 22314–3428. Permit Officer. commercial nuclear power plants. 5. The number of annual respondents: FOR FURTHER INFORMATION CONTACT: The [FR Doc. 98–1055 Filed 1–14–98; 8:45 am] BILLING CODE 7555±01±M 109 holders of operating licenses for Office of Community Development commercial nuclear power plants. Credit Unions at the above address or 6. The number of hours needed telephone (703) 518–6610. NATIONAL SCIENCE FOUNDATION annually to complete the requirement or SUPPLEMENTARY INFORMATION: Part 705 of request: Approximately 50 hours per the NCUA Rules and Regulations Notice of Permits Issued Under the response. The total industry burden is implements the Community Antarctic Conservation Act of 1978 80,000 hours. 7. Abstract: NRC collects reports of Development Revolving Loan Program AGENCY: National Science Foundation. for Credit Unions. The purpose of the operational events at commercial ACTION: Notice of permits issued under nuclear power plants in order to Program is to assist officially designated the Antarctic Conservation of 1978, ‘‘low-income’’ credit unions in incorporate lessons of that experience in Public Law 95–541. the licensing process and to feed back providing basic financial services to the lessons of that experience to the residents in their communities which SUMMARY: The National Science nuclear industry. result in increased income, ownership Foundation (NSF) is required to publish notice of permits issued under the Submit, by March 16, 1998, comments and employment. The Program makes that address the following questions: available low interest loans and deposits Antarctic Conservation Act of 1978. This is the required notice. 1. Is the proposed collection of in amounts up to $300,000 to qualified information necessary for the NRC to participating ‘‘low-income’’ credit FOR FURTHER INFORMATION CONTACT: Nadene G. Kennedy, Permit Office, properly perform its functions? Does the unions. Program participation is limited information have practical utility? to existing credit unions with an official Office of Polar Programs, Rm. 755, National Science Foundation, 4201 2. Is the burden estimate accurate? ‘‘low-income’’ designation. Wilson Boulevard, Arlington, VA 22230. 3. Is there a way to enhance the quality, utility, and clarity of the This notice is published pursuant to SUPPLEMENTARY INFORMATION: On information to be collected? section 705.9 of the NCUA Rules and December 2, 1997, the National Science Regulations, 12 CFR 705.9, which states 4. How can the burden of the Foundation published a notice in the information collection be minimized, that NCUA will provide notice in the Federal Register of permit applications Federal Register when funds in the including the use of automated received. Permits were issued on collection techniques or other forms of program are available. January 7, 1998 to the following information technology? By the National Credit Union applicants: Howard E. Evans, Permit No. A copy of the draft supporting Administration Board on January 8, 1998. 98–020 and Rennie S. Holt, Permit No. statement may be viewed free of charge Becky Baker, 98–021. at the NRC Public Document Room, Nadene G. Kennedy, Secretary, NCUA Board. 2120 L Street, NW (lower level), Permit Officer. [FR Doc. 98–968 Filed 1–14–98; 8:45 am] Washington, DC. OMB clearance [FR Doc. 98–1056 Filed 1–14–98; 8:45 am] requests are available at the NRC BILLING CODE 7535±01±U BILLING CODE 7555±01±M worldwide web site (http://

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This modification prevents the thermal Comments and questions about the regulations. overloading of the SW System in order to information collection requirements The Commission has made a preserve the operability of equipment cooled may be directed to the NRC Clearance proposed determination that the by the SW System. Several potential new Officer, Brenda Jo. Shelton, U.S. Nuclear amendment request involves no failure modes were evaluated and Regulatory Commission, T–6 F33, significant hazards consideration. Under determined not to create the possibility of a Washington, DC, 20555–0001, or by the Commission’s regulations in 10 CFR new or different kind of accident. telephone at 301–415–7233, or by 50.92, this means that operation of the Additionally, the RB Fans are engineered Internet electronic mail at facility in accordance with the proposed safeguards equipment designed to mitigate an [email protected]. amendment would not (1) involve a accident, and the SW System is an accident significant increase in the probability or mitigation support system. These systems are Dated at Rockville, Maryland, this 8th day consequences of an accident previously not accident initiators. The ES electrical of January, 1998. busses and the EDG [emergency diesel evaluated; or (2) create the possibility of For the Nuclear Regulatory Commission. generator] are not affected by this change. All a new or different kind of accident from Brenda Jo. Shelton, containment design conditions are met with any accident previously evaluated; or this change. NRC Clearance Officer, Office of the Chief (3) involve a significant reduction in a Therefore, this change cannot create the Information Officer. margin of safety. The licensee made its possibility of an accident of a different kind [FR Doc. 98–1048 Filed 1–14–98; 8:45 am] request on December 5, 1997, and as than previously evaluated in the SAR. BILLING CODE 7590±01±P required by 10 CFR 50.91(a), and 3. Does not involve a significant reduction provided its analysis of the issue of no in the margin of safety. significant hazards consideration which Technical Specification 3.6.6 states that NUCLEAR REGULATORY is presented below: two RB Spray trains and two RB containment COMMISSION cooling trains must be operable. This 1. Does not involve a significant increase specification ensures diversity and in the probability or consequences of an redundancy of the containment cooling [Docket No. 50±302] accident previously evaluated. system. Following the modification, all The change to the starting logic for the RB Florida Power Corporation; Notice of margins will be maintained. Two RB Fans Fans affects the ES equipment that responds will be operable and capable of starting on Consideration of Issuance of to mitigate an accident. The RB Fans are not an RBIC signal. The modified circuitry Amendment to Facility Operating accident initiators and the change to the maintains the RB Fan redundancy. The RB License, Proposed No Significant starting logic cannot initiate an accident. Sprays are not affected by this modification. Hazards Consideration Determination, Therefore, the probability of occurrence of an The margin of safety associated with the and Opportunity for a Hearing evaluated accident is not increased. containment maximum pressure and The RB Fan start logic change selects an temperature in response to a LOCA [loss-of- The U.S. Nuclear Regulatory available RB Fan to run upon an RBIC coolant accident] is not affected since any Commission (the Commission) is actuation, but only allows the operation of failure of this modification results in considering issuance of an amendment one RB Fan to prevent overloading the SW equipment combinations that have been [Nuclear Services Closed Cycle Cooling] to Facility Operating License No. DPR analyzed and determined to be acceptable. System. The containment analysis for CR–3 Containment LOCA response sensitivity 72, issued to the Florida Power assumes that one train of ES equipment is studies have verified that the small start Corporation (FPC or the licensee), for available for accident mitigation, specifically, delay, associated with the modified RB Fan operation of the Crystal River Nuclear one RB Fan and one RB Spray train for start circuit, has no effect on the post-LOCA containment cooling. The combination of two Generating Unit 3 (CR3) located in peak temperature and pressure in RB Spray trains with no RB Fans is also Citrus County, Florida. containment. Also, the failure of SW valves evaluated and found to be acceptable. These The licensee proposed a revision to that results in the loss of the ability of the the description of the starting logic for available containment cooling equipment combinations represent the minimum that RB Fan Coolers to remove heat or the failure the Reactor Building (RB) Recirculation would be available for accident response of either RB Fan to run, will not affect the System Fan Coolers, as discussed in the both before and after the implementation of containment peak temperature and pressure CR3 Final Safety Analysis Report this change. conditions since two trains of RB Spray are (FSAR), Chapters 5, 6, 7 and 9, and In addition to the same equipment being available. Improved Technical Specification (ITS) available to mitigate an accident, there is no The proposed modification allows only Bases Section 3.6. The change to the change to the analyzed containment one RB Fan to operate post-accident. This response. The time delay in the start of an ensures that the SW System is not overloaded starting logic would ensure that only and SW temperatures remain within design one RB Fan starts on an Engineered RB Fan of up to several seconds due to the modification has been evaluated through basis limits. Therefore, there is no reduction Safeguards (ES) Reactor Building containment analysis sensitivity studies. The in the margin of safety for the SW System Isolation and Cooling (RBIC) signal. A results of these studies show that equipment cooling function after the modification to the plant will install containment peak pressure and temperature, implementation of this change. components that could increase the and long term temperature profiles, are not The small additional electrical loads, and probability of occurrence of a affected. The consequences of an accident are the out-of-sequence loading of an RB Fan malfunction of equipment important to directly related to containment pressure and associated with this change have been safety previously evaluated in the temperature conditions. Since containment evaluated and determined to be within the FSAR. FPC has determined that conditions following an accident are not load limits of the EDG and ES electrical affected by this modification, there will be no busses. Therefore, there is no reduction in proposed changes to associated change to the consequences of any analyzed the electrical system margin of safety. electrical controls involve an accident. Based on the above evaluation, there is no Unreviewed Safety Question (USQ). 2. Does not create the possibility of a new reduction in the margin of safety associated Therefore, NRC review and approval are or different kind of accident from any with the equipment and systems affected by required. accident previously evaluated. this change.

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The NRC staff has reviewed the Commission’s ‘‘Rules of Practice for The petitioner must also provide licensee’s analysis and, based on this Domestic Licensing Proceedings’’ in 10 references to those specific sources and review, it appears that the three CFR part 2. Interested persons should documents of which the petitioner is standards of 10 CFR 50.92(c) are consult a current copy of 10 CFR 2.714 aware and on which the petitioner satisfied. Therefore, the NRC staff which is available at the Commission’s intends to rely to establish those facts or proposes to determine that the Public Document Room, the Gelman expert opinion. Petitioner must provide amendment request involves no Building, 2120 L Street, NW., sufficient information to show that a significant hazards consideration. Washington, DC, and at the local public genuine dispute exists with the The Commission is seeking public document room located at the Coastal applicant on a material issue of law or comments on this proposed Region Library, 8619 W. Crystal Street, fact. Contentions shall be limited to determination. Any comments received Crystal River, Florida. matters within the scope of the within 30 days after the date of If a request for a hearing or petition amendment under consideration. The publication of this notice will be for leave to intervene is filed by the contention must be one which, if considered in making any final above date, the Commission or an proven, would entitle the petitioner to determination. Atomic Safety and Licensing Board, relief. A petitioner who fails to file such Normally, the Commission will not designated by the Commission or by the a supplement which satisfies these issue the amendment until the Chairman of the Atomic Safety and requirements with respect to at least one expiration of the 30-day notice period. Licensing Board Panel, will rule on the contention will not be permitted to However, should circumstances change request and/or petition; and the participate as a party. during the notice period, such that Secretary or the designated Atomic Those permitted to intervene become failure to act in a timely way would Safety and Licensing Board will issue a parties to the proceeding, subject to any result, for example, in derating or notice of hearing or an appropriate limitations in the order granting leave to shutdown of the facility, the order. intervene, and have the opportunity to Commission may issue the license As required by 10 CFR 2.714, a participate fully in the conduct of the amendment before the expiration of the petition for leave to intervene shall set hearing, including the opportunity to 30-day notice period, provided that its forth with particularity the interest of present evidence and cross-examine final determination is that the the petitioner in the proceeding, and witnesses. amendment involves no significant how that interest may be affected by the If a hearing is requested, the hazards consideration. The final results of the proceeding. The petition Commission will make a final determination will consider all public should specifically explain the reasons determination on the issue of no and State comments received. Should why intervention should be permitted significant hazards consideration. The the Commission take this action, it will with particular reference to the final determination will serve to decide publish in the Federal Register a notice following factors: (1) The nature of the when the hearing is held. of issuance. The Commission expects petitioner’s right under the Act to be If the final determination is that the that the need to take this action will made a party to the proceeding; (2) the amendment request involves no occur very infrequently. nature and extent of the petitioner’s significant hazards consideration, the Written comments may be submitted property, financial, or other interest in Commission may issue the amendment by mail to the Chief, Rules Review and the proceeding; and (3) the possible and make it immediately effective, Directives Branch, Division of Freedom effect of any order which may be notwithstanding the request for a of Information and Publications entered in the proceeding on the hearing. Any hearing held would take Services, Office of Administration, U.S. petitioner’s interest. The petition should place after issuance of the amendment. Nuclear Regulatory Commission, also identify the specific aspect(s) of the If the final determination is that the Washington, DC 20555–0001, and subject matter of the proceeding as to amendment request involves a should cite the publication date and which petitioner wishes to intervene. significant hazards consideration, any page number of this Federal Register Any person who has filed a petition for hearing held would take place before notice. Written comments may also be leave to intervene or who has been the issuance of any amendment. delivered to Room 6D22, Two White admitted as a party may amend the A request for a hearing or a petition Flint North, 11545 Rockville Pike, petition without requesting leave of the for leave to intervene must be filed with Rockville, Maryland, from 7:30 a.m. to Board up to 15 days prior to the first the Secretary of the Commission, U.S. 4:15 p.m. Federal workdays. Copies of prehearing conference scheduled in the Nuclear Regulatory Commission, written comments received may be proceeding, but such an amended Washington, DC 20555–0001, Attention: examined at the NRC Public Document petition must satisfy the specificity Rulemakings and Adjudications Staff Room, the Gelman Building, 2120 L requirements described above. Not later may be delivered to the Commission’s Street, NW., Washington, DC. than 15 days prior to the first prehearing Public Document Room, the Gelman The filing of requests for hearing and conference scheduled in the proceeding, Building, 2120 L Street, NW., petitions for leave to intervene is a petitioner shall file a supplement to Washington, DC, by the above date. A discussed below. the petition to intervene which must copy of the petition should also be sent By February 17, 1998, the licensee include a list of the contentions which to the Office of the General Counsel, may file a request for a hearing with are sought to be litigated in the matter. U.S. Nuclear Regulatory Commission, respect to issuance of the amendment to Each contention must consist of a Washington, DC 20555–0001, and to R. the subject facility operating license and specific statement of the issue of law or Alexander Glenn, General Counsel, any person whose interest may be fact to be raised or controverted. In Florida Power Corporation, MAC—A5A, affected by this proceeding and who addition, the petitioner shall provide a P.O. Box 14042, St. Petersburg, Florida wishes to participate as a party in the brief explanation of the bases of the 33733–4042, attorney for the licensee. proceeding must file a written request contention and a concise statement of Nontimely filings of petitions for for a hearing and a petition for leave to the alleged facts or expert opinion leave to intervene, amended petitions, intervene. Requests for a hearing and a which support the contention and on supplemental petitions and/or requests petition for leave to intervene shall be which the petitioner intends to rely in for hearing will not be entertained filed in accordance with the proving the contention at the hearing. absent a determination by the

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Commission, the presiding officer or the to place radiation survey instruments in Updated Final Safety Analysis Report presiding Atomic Safety and Licensing accessible locations for use in such an (UFSAR). Board that the petition and/or request emergency. The change will not increase the should be granted based upon a The proposed action is in accordance probability or consequences of balancing of the factors specified in 10 with the licensee’s application for accidents, no changes are being made in CFR 2.714(a)(1)(i)–(v) and 2.714(d). exemption dated December 16, 1997. the types of any effluents that may be For further details with respect to this The Need for the Proposed Action released offsite, and there is no action, see the application for significant increase in the allowable amendment dated December 5, 1997, The purpose of 10 CFR 70.24 is to individual or cumulative occupational which is available for public inspection ensure that if a criticality were to occur radiation exposure. Accordingly, the at the Commission’s Public Document during the handling of special nuclear Commission concludes that there are no Room, the Gelman Building, 2120 L material, personnel would be alerted to significant radiological environmental that fact and would take appropriate Street, NW., Washington, DC, and at the impacts associated with the proposed action. At a commercial nuclear power local public document room, located at action. plant the inadvertent criticality with the Coastal Region Library, 8619 W. With regard to potential Crystal Street, Crystal River, Florida. which 10 CFR 70.24 is concerned could occur during fuel handling operations. nonradiological impacts, the proposed Dated at Rockville, Maryland, this 9th day The special nuclear material that could action does involve features located of January 1998. be assembled into a critical mass at a entirely within the restricted area as For the Nuclear Regulatory Commission. commercial nuclear power plant is in defined in 10 CFR part 20. It does not L. Raghavan, the form of nuclear fuel; the quantity of affect nonradiological plant effluents Senior Project Manager, Project Directorate other forms of special nuclear material and has no other environmental impact. II–3, Division of Reactor Projects—I/II, Office that is stored on site in any given Accordingly, the Commission concludes of Nuclear Reactor Regulation. location is small enough to preclude that there are no significant [FR Doc. 98–1046 Filed 1–14–98; 8:45 am] achieving a critical mass. Because the nonradiological environmental impacts BILLING CODE 7590±01±P fuel is not enriched beyond 5.0 weight associated with the proposed action. percent Uranium-235 and because Alternatives to the Proposed Action commercial nuclear plant licensees have NUCLEAR REGULATORY procedures and design features that Since the Commission has concluded COMMISSION prevent inadvertent criticality, the staff that there is no measurable [Docket No. 50±271] has determined that it is unlikely that environmental impact associated with an inadvertent criticality could occur the proposed action, any alternatives Vermont Yankee Nuclear Power due to the handling of special nuclear with equal or greater environmental Corporation; Vermont Yankee Nuclear material at a commercial power reactor. impact need not be evaluated. As an Power Station; Environmental The requirements of 10 CFR 70.24, alternative to the proposed action, the Assessment and Finding of No therefore, are not necessary to ensure staff considered denial of the proposed Significant Impact the safety of personnel during the action. Denial of the application would result in no change in current The U.S. Nuclear Regulatory handling of special nuclear material at commercial power reactors. environmental impacts, The Commission (the Commission) is environmental impacts of the proposed considering issuance of an exemption Environmental Impacts of the Proposed action and the alternative action are from certain requirements of its Action similar. regulations for Facility Operating The Commission has completed its Alternative Use of Resources License No. DPR–28, issued to Vermont evaluation of the proposed action and Yankee Nuclear Power Corporation (the concludes that there is no significant This action does not involve the use licensee), for operation of Vermont environmental impact if the exemption of any resources not previously Yankee Nuclear Power Station located is granted. Inadvertent or accidental considered in the Final Environmental in Windham County, Vermont. criticality will be precluded through Statement for the Vermont Yankee Environmental Assessment compliance with the Vermont Yankee Nuclear Power Station. Technical Specifications, the design of Agencies and Persons Consulted Identification of the Proposed Action the fuel storage racks providing The proposed action would exempt geometric spacing of fuel assemblies in In accordance with its stated policy, the licensee from the requirements of 10 their storage locations, and on January 9, 1998, the staff consulted CFR 70.24, which requires in each area administrative controls imposed on fuel with the Vermont State official, Mr. in which special nuclear material is handling procedures. Technical William K. Sherman, of the Department handled, used, or stored a monitoring Specifications requirements specify of Public Service, regarding the system that will energize clear audible reactivity limits for the fuel storage environmental impact of the proposed alarms if accidental criticality occurs. racks and minimum spacing between action. The State official had no The proposed action would also exempt the fuel assemblies in the storage racks. comments. the licensee from the requirements to Appendix A of 10 CFR part 50, Finding of No Significant Impact maintain emergency procedures for each ‘‘General Design Criteria for Nuclear area in which this licensed special Power Plants,’’ Criterion 62, requires the Based upon the environmental nuclear material is handled, used, or criticality in the fuel storage and assessment, the Commission concludes stored to ensure that all personnel handling system shall be prevented by that the proposed action will not have withdraw to an area of safety upon the physical systems or processes, a significant effect on the quality of the sounding of the alarm, to familiarize preferably by use of geometrically-safe human environment. Accordingly, the personnel with the evacuation plan, and configurations. This is met at the Commission has determined not to to designate responsible individuals for Vermont Yankee Station, as identified prepare an environmental impact determining the cause of the alarm, and in the Technical Specifications and the statement for the proposed action.

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For further details with respect to the Regulatory Guide 3.35, Assumptions PENSION BENEFIT GUARANTY proposed action, see the licensee’s letter Used for Evaluating the Potential CORPORATION dated December 16, 1997, which is Radiological Consequences of available for public inspection at the Accidental Nuclear Criticality in a Interest Assumption for Determining Commission’s Public Document Room, Plutonium Processing and Fuel Variable-Rate Premium; Interest on which is located at The Gelman Fabrication Plant (Revision 1, July Late Premium Payments; Interest on Building, 2120 L Street, NW., 1979) Underpayments and Overpayments of Washington, DC, and at the local public Regulatory Guide 5.1, Serial Numbering Single-Employer Plan Termination document room located at the Brooks of Fuel Assemblies for Light-Water- Liability and Multiemployer Withdrawal Memorial Library, 224 Main Street, Cooled Nuclear Power Reactors Liability; Interest Assumptions for Brattleboro, VT. (December 1972) Multiemployer Plan Valuations Following Mass Withdrawal Dated at Rockville, Maryland, this 9th day Regulatory Guide 5.14, Use of of January 1998. Observation (Visual Surveillance) AGENCY: Pension Benefit Guaranty For the Nuclear Regulatory Commission. Techniques in Material Access Areas Corporation. Ronald B. Eaton, (Revision 1, May 1980) ACTION: Notice of interest rates and Acting Director, Project Directorate I–3, Regulatory Guide 5.24, Analysis and assumptions. Division of Reactor Projects—I/II, Office of Use of Process Data for the Protection SUMMARY: Nuclear Reactor Regulation. of Special Nuclear Material (June This notice informs the public [FR Doc. 98–1045 Filed 1–14–98; 8:45 am] 1974) to be used under certain Pension Benefit Guaranty Corporation regulations. These BILLING CODE 7590±01±P Regulatory Guide 5.29, Nuclear Material rates and assumptions are published Control Systems for Nuclear Power elsewhere (or are derivable from rates Plants (Revision 1, June 1975) NUCLEAR REGULATORY published elsewhere), but are collected Regulatory Guide 5.30, Materials COMMISSION and published in this notice for the Protection Contingency Measures for convenience of the public. Interest rates Regulatory Guides; Withdrawal Uranium and Plutonium Fuel are also published on the PBGC’s home Manufacturing Plants (June 1974) page (http://www.pbgc.gov). The Nuclear Regulatory Commission Regulatory Guide 5.45, Standard Format DATES: The interest rate for determining is withdrawing several guides in its and Content for the Special Nuclear the variable-rate premium under part Regulatory Guide Series. Regulatory Material Control and Accounting 4006 applies to premium payment years guides may be withdrawn when (1) they Section of a Special Nuclear Material beginning in January 1998. The interest are superseded by the Commission’s License Application (Including That assumptions for performing regulations, (2) equivalent for a Uranium Enrichment Facility) multiemployer plan valuations recommendations have been (December 1974) following mass withdrawal under part incorporated in approved codes or Regulatory Guide 8.3, Film Badge 4281 apply to valuation dates occurring standards, or (3) there have been Performance Criteria (February 1973) in February 1998. The interest rates for changes in methods, techniques, or the late premium payments under part 4007 need for specific guidance. Since the In addition, Draft Regulatory Guide DG–0008, ‘‘Applications for the Use of and for underpayments and methods discussed in these regulatory overpayments of single-employer plan guides fall into one of these categories, Sealed Sources in Portable Gauging Devices’’ (May 1995), is being termination liability under part 4062 the regulatory guides listed below are and multiemployer withdrawal liability being withdrawn. New applications for withdrawn from consideration as a regulatory guide. The NRC recently under part 4219 apply to interest licenses or amendments should address accruing during the first quarter current guidance. However, withdrawal published NUREG–1556, ‘‘Consolidated Guidance About Materials Licenses: (January through March) of 1998. of these regulatory guides does not alter FOR FURTHER INFORMATION CONTACT: any existing license conditions that Program-Specific Guidance About Portable Gauge Licenses,’’ which Harold J. Ashner, Assistant General were based on these guides. Counsel, Office of the General Counsel, Applications that reference these contains information on the same subject. Pension Benefit Guaranty Corporation, regulatory guides and are pending as of 1200 K Street, NW., Washington, DC Comments and suggestions in the date of this notice do not need to be 20005, 202–326–4024. (For TTY/TDD connection with items for inclusion in withdrawn or amended. users, call the Federal relay service toll- guides currently being developed or free at 1–800–877–8339 and ask to be Regulatory Guide 3.2, Efficiency Testing improvements in all published guides connected to 202–326–4024.) of Air-Cleaning Systems Containing are encouraged at any time. Written Devices for Removal of Particles comments may be submitted to the SUPPLEMENTARY INFORMATION: (January 1973) Rules and Directives Branch, Division of Variable-Rate Premiums Regulatory Guide 3.9, Concrete Administrative Services, Office of Radiation Shields (June 1973) Administration, U.S. Nuclear Regulatory Section 4006(a)(3)(E)(iii)(II) of the Regulatory Guide 3.33, Assumptions Commission, Washington, DC 20555. Employee Retirement Income Security Used for Evaluating the Potential Act of 1974 (ERISA) and § 4006.4(b)(1) Radiological Consequences of (5 U.S.C. 552(a)) of the PBGC’s regulation on Premium Accidental Nuclear Criticality in a Dated at Rockville, Maryland, this 22nd Rates (29 CFR part 4006) prescribe use Fuel Reprocessing Plant (April 1977) day of December 1997. of an assumed interest rate in Regulatory Guide 3.34, Assumptions For the Nuclear Regulatory Commission. determining a single-employer plan’s Used for Evaluating the Potential Malcolm R. Knapp, variable-rate premium. The rate is the Radiological Consequences of Acting Director, Office of Nuclear Regulatory ‘‘applicable percentage’’ (described in Accidental Nuclear Criticality in a Research. the statute and the regulation) of the Uranium Fuel Fabrication Plant [FR Doc. 98–1047 Filed 1–15–98; 8:45 am] annual yield on 30-year Treasury (Revision 1, July 1979) BILLING CODE 7590±01±P securities for the month preceding the

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2427 beginning of the plan year for which The as- provision provides otherwise. For premiums are being paid (the ‘‘premium For premium payment years sumed in- interest accruing during any calendar payment year’’). The yield figure is beginning in terest rate is quarter, the specified rate is the average reported in Federal Reserve Statistical quoted prime rate on short-term Releases G.13 and H.15. October 1997 ...... 5.53 commercial loans for the fifteenth day For plan years beginning before July November 1997 ...... 5.38 (or the next business day if the fifteenth 1, 1997, the applicable percentage of the December 1997 ...... 5.19 day is not a business day) of the month 30-year Treasury yield was 80 percent. January 1998 ...... 5.09 preceding the beginning of the quarter, The Retirement Protection Act of 1994 as reported by the Board of Governors (RPA) amended ERISA section Late Premium Payments; of the Federal Reserve System in 4006(a)(3)(E)(iii)(II) to change the Underpayments and Overpayments of Statistical Release H.15 (‘‘Selected applicable percentage to 85 percent, Single-Employer Plan Termination Interest Rates’’). The rate for the first effective for plan years beginning on or Liability after July 1, 1997. (The amendment also quarter (January through March) of 1998 Section 4007(b) of ERISA and provides for a further increase in the (i.e., the rate reported for December 15, § 4007.7(a) of the PBGC’s regulation on applicable percentage—to 100 percent— 1997) is 8.50 percent. Payment of Premiums (29 CFR part when the Internal Revenue Service 4007) require the payment of interest on The following table lists the adopts new mortality tables for late premium payments at the rate withdrawal liability underpayment and determining current liability.) established under section 6601 of the overpayment interest rates for the The assumed interest rate to be used Internal Revenue Code. Similarly, specified time periods: in determining variable-rate premiums § 4062.7 of the PBGC’s regulation on for premium payment years beginning Liability for Termination of Single- Rate in January 1998 is 5.09 percent (i.e., 85 From Through (percent) percent of the 5.99 percent yield figure employer Plans (29 CFR part 4062) for December 1997). requires that interest be charged or 1/1/92 ...... 3/31/92 7.50 (Under section 774(c) of the RPA, the credited at the section 6601 rate on 4/1/92 ...... 9/30/92 6.50 amendment to the applicable percentage underpayments and overpayments of 10/1/92 ...... 6/30/94 6.00 was deferred for certain regulated public employer liability under section 4062 of 7/1/94 ...... 9/30/94 7.25 utility (RPU) plans for as long as six ERISA. The section 6601 rate is 10/1/94 ...... 12/31/94 7.75 months. The applicable percentage for established periodically (currently 1/1/95 ...... 3/31/95 8.50 RPU plans has therefore remained 80 quarterly) by the Internal Revenue 4/1/95 ...... 9/30/95 9.00 percent for plan years beginning before Service. The rate applicable to the first 10/1/95 ...... 3/31/96 8.75 January 1, 1998. For ‘‘partial’’ RPU quarter (January through March) of 4/1/96 ...... 12/31/96 8.25 plans, the assumed interest rates to be 1998, as announced by the IRS, is 9 1/1/97 ...... 3/31/97 8.25 used in determining variable-rate percent. 4/1/97 ...... 6/30/97 8.25 premiums can be computed by applying The following table lists the late 7/1/97 ...... 9/30/97 8.50 the rules in § 4006.5(g) of the premium payment interest rates for premiums and 10/1/97 ...... 12/31/97 8.50 rates regulation. The PBGC’s 1997 employer liability for the specified time 1/1/98 ...... 3/31/98 8.50 premium payment instruction booklet periods: also describes these rules and provides Interest rate Multiemployer Plan Valuations a worksheet for computing the assumed From Through (percent) Following Mass Withdrawal rate.) The following table lists the assumed 1/1/92 ...... 3/31/92 9 The PBGC’s regulation on Duties of interest rates to be used in determining 4/1/92 ...... 9/30/92 8 Plan Sponsor Following Mass variable-rate premiums for premium 10/1/92 ...... 6/30/94 7 Withdrawal (29 CFR part 4281) payment years beginning between 7/1/94 ...... 9/30/94 8 prescribes the use of interest 10/1/94 ...... 3/31/95 9 February 1997 and January 1998. The assumptions under the PBGC’s rates for July through December 1997 in 4/1/95 ...... 6/30/95 10 7/1/95 ...... 3/31/96 9 regulation on Allocation of Assets in the table (which reflect an applicable 4/1/96 ...... 6/30/96 8 Single-employer Plans (29 CFR part percentage of 85 percent) apply only to 7/1/96 ...... 12/31/96 9 4044). The interest assumptions non-RPU plans. However, the rates for 1/1/97 ...... 3/31/97 9 applicable to valuation dates in months before July 1997 and after 4/1/97 ...... 6/30/97 9 February 1998 under part 4044 are December 1997 apply to RPU (and 7/1/97 ...... 9/30/97 9 contained in an amendment to part 4044 ‘‘partial’’ RPU) plans as well as to non- 10/1/97 ...... 12/31/97 9 1/1/98 ...... 3/31/98 9 published elsewhere in today’s Federal RPU plans. Register. Tables showing the The as- Underpayments and Overpayments of assumptions applicable to prior periods For premium payment years sumed in- Multiemployer Withdrawal Liability are codified in appendix B to 29 CFR beginning in terest rate part 4044. is Section 4219.32(b) of the PBGC’s regulation on Notice, Collection, and Issued in Washington, DC, on this 9th day February 1997 ...... 5.46 Redetermination of Withdrawal of January 1998. March 1997 ...... 5.35 Liability (29 CFR part 4219) specifies David M. Strauss, April 1997 ...... 5.54 May 1997 ...... 5.67 the rate at which a multiemployer plan Executive Director, Pension Benefit Guaranty June 1997 ...... 5.55 is to charge or credit interest on Corporation. July 1997 ...... 5.75 underpayments and overpayments of [FR Doc. 98–1062 Filed 1–14–98; 8:45 am] August 1997 ...... 5.53 withdrawal liability under section 4219 BILLING CODE 7708±01±P September 1997 ...... 5.59 of ERISA unless an applicable plan

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SECURITIES AND EXCHANGE collection of information; (c) ways to Trust, designed to be sold to VLI COMMISSION enhance the quality, utility, and clarity accounts and to which Applicants or of the information on respondents; and their affiliates may in the future serve as Proposed Collection; Comment (d) ways to minimize the burden of the investment advisers, investment sub- Request collection of information on advisers, investment managers, Upon written request, copies available respondents, including through the use administrators, principal underwriters from: Securities and Exchange of automated collection techniques or or sponsors. Commission, Office of Filings and other forms of information technology. APPLICANTS: Goldman, Sachs & Co. Information Services, 450 Fifth Street, Consideration will be given to (‘‘Goldman Sachs’’), on behalf of itself N.W., Washington, D.C. 20549. comments and suggestions submitted in and its operating division Goldman writing on or before March 16, 1998. Sachs Asset Management (‘‘GSAM’’), Extension: Please direct your comments to Goldman Sachs Variable Insurance Rule 15g–9, SEC File No. 270–325, OMB Michael E. Bartell, Associate Executive Control No. 3235–0385. Trust, and Goldman Sachs Asset Director, Office of Information Management International (‘‘GSAMI’’). Notice is hereby given that pursuant Technology, Securities and Exchange FILING DATE: The application was filed to the Paperwork Reduction Act of 1995 Commission, 450 Fifth Street, N.W., on September 23, 1997 and amended on (44 U.S.C. §§ 3501 et seq.), the Washington, D.C. 20549. December 18, 1997. Securities and Exchange Commission HEARING OR NOTIFICATION OF HEARING: (‘‘Commission’’) is soliciting comment Dated: January 8, 1998. An on the collection of information Jonathan G. Katz, order granting the application will be described below. The Commission plans Secretary. issued unless the Commission orders a to submit this existing collection of [FR Doc. 98–1037 Filed 1–14–98; 8:45 am] hearing. Interested persons may request a hearing on this application by writing information to the Office of BILLING CODE 8010±01±M Management and Budget for extension to the Secretary of the SEC and serving and approval. Applicants with a copy of the request, • Rule 15g–9, Sales Practice SECURITIES AND EXCHANGE in person or by mail. Hearing requests Requirements for Certain Low-Priced COMMISSION must be received by the Commission by 5:30 p.m. on January 30, 1998, and must Securities [Rel. No. IC±22995; File No. 812±10794] Section 15(c)(2) of the Securities be accompanied by proof of service on Exchange Act of 1934 (the ‘‘Exchange the Applicants in the form of an Goldman, Sachs & Co. et al.; Notice of affidavit or, for lawyers, a certificate of Act’’) authorizes the Commission to Application promulgate rules that prescribe means service. Hearing requests should state reasonably designed to prevent January 8, 1998. the nature of the requester’s interest, the fraudulent, deceptive, or manipulative AGENCY: Securities and Exchange reason for the request and the issues practices in connection with over-the- Commission (‘‘SEC’’ or ‘‘Commission’’). contested. Persons who wish to be counter (‘‘OTC’’) securities transactions. ACTION: Notice of application for an notified of a hearing may request Pursuant to this authority, the order under Section 6(c) of the notification by writing to the Secretary Commission in 1989 adopted Rule 15a– Investment Company Act of 1940 (the of the SEC. 6 (the ‘‘Rule’’), which was subsequently ‘‘Act’’) granting relief from the ADDRESSES: Secretary, Securities and redesignated as Rule 15g–9, 17 CFR provisions of Sections 9(a), 13(a), 15(a) Exchange Commission, 450 Fifth Street, 240.15g–9. The Rule requires broker- and 15(b) of the Act and Rules 6e– N.W., Washington, D.C. 20549. dealers to produce a written suitability 2(b)(15) and 6e–3(T)(b)(15) thereunder. Applicants, c/o Michael J. Richman, determination for, and to obtain a Goldman, Sachs & Co., 85 Broad Street, written customer agreement to, certain SUMMARY OF APPLICATION: Applicants New York, New York 10004. recommended transactions in low- seek exemptive relief to the extent FOR FURTHER INFORMATION CONTACT: priced stocks that are not registered on necessary to permit life insurance Keith E. Carpenter, Senior Counsel, or a national securities exchange or company separate accounts supporting Kevin M. Kirchoff, Branch Chief, Office authorized for trading on NASDAQ, and variable life insurance contracts (and of Insurance Products, Division of whose issuers do not meet certain their insurance company depositors) to Investment Management, at (202) 942– minimum financial standards. The Rule invest in shares of the Goldman Sachs 0670. is intended to prevent the Variable Insurance Trust or a ‘‘future SUPPLEMENTARY INFORMATION: The indiscriminate use by broker-dealers of trust,’’ as defined below (together, the following is a summary of the fraudulent, high pressure telephone ‘‘Trust’’), when the following other application; the complete application is sales campaigns to sell low-priced types of investors also hold shares of the available for a fee from the SEC’s Public securities to unsophisticated customers. Trust: (1) A variable life insurance Reference Branch, 450 5th Street, N.W., The staff estimates that approximately (‘‘VLI’’) account of a life insurance Washington, D.C. 20549 (tel. (202) 942– 270 broker-dealers incur an average company that is not an affiliated person 8090). burden of 78 hours per year to comply of the insurance company depositor of with this rule. Thus, the total burden any VLI account, (2) the Trust’s Applicants’ Representations hours to comply with the Rule is investment adviser (representing seed 1. Goldman Sachs Variable Insurance estimated at 21,060 hours (270 × 78). money investments in the Trust), (3) a Trust is a business trust organized under Written comments are invited on: (a) life insurance company separate the laws of Delaware on September 16, whether the proposed collection of account supporting variable annuity 1997. It is registered under the Act as an information is necessary for the proper contracts (a ‘‘VA account’’), and/or (4) a open-end management investment performance of the functions of the qualified pension or retirement plan. As company and is a series investment agency, including whether the used herein, a ‘‘future trust’’ is any company as defined by Rule 18f–2 information shall have practical utility; investment company (or investment under the Act. It is currently comprised (b) the accuracy of the agency’s portfolio or series thereof), other than of nine investment portfolios. It issues estimates of the burden of the proposed the Goldman Sachs Variable Insurance a separate series of shares of beneficial

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2429 interest in connection with each operating division, GSAM, and through federal tax law several years ago created investment portfolio (each, a ‘‘Fund’’). It several investment management the opportunity for investment may offer each series of its shares to VLI affiliates, including GSAMI. Through companies such as the Trust to increase accounts and VA accounts of various GSAM, Goldman Sachs serves as their net assets by selling shares to life insurance companies (‘‘participating investment adviser to Goldman Sachs qualified pension and retirement plans insurance companies’’) and to pension Variable Insurance Trust’s High Yield such as the plans. Section 817(h) of the and retirement plans qualified under Fund, Growth and Income Fund, CORE Code imposes certain diversification Section 401(a) of the Internal Revenue U.S. Equity Fund, CORE Large Cap standards on the assets underlying Code of 1986, as amended (the ‘‘Code’’) Growth Fund, CORE Small Cap Equity variable contracts, such as those in each (‘‘plans’’). Fund, Capital Growth Fund and Mid Fund of the Trust. The Code provides 2. Each VLI account and VA account Cap Equity Fund. GSAMI is an affiliate that variable contracts will not be will be established as a segregated asset of Goldman Sachs and serves as the treated as annuity contracts or life account by a participating insurance investment adviser to Goldman Sachs insurance contracts, as the case may be, company pursuant to the insurance law Variable Insurance Trust’s Global for any period (or any subsequent of the insurance company’s state of Income Fund and International Equity period) for which the underlying assets domicile. As such, the assets of each Fund. GSAMI has been registered as an are not, in accordance with regulations will be the property of the participating investment adviser under the Advisers issued by the Treasury Department, insurance company and that portion of Act since 1991. adequately diversified. On March 2, the assets of such an account equal to 5. The Applicants propose that the 1989, the Treasury Department issued the reserves and other contract Trust offer and sell its shares to VLI regulations (Treas. Reg. 1.817–5) which liabilities with respect to the account accounts and VA accounts of various established specific diversification will not be chargeable with liabilities participating insurance companies to requirements for investment portfolios arising out of any other business that the serve as an investment medium to underlying variable contracts. The insurance company may conduct. The support viable life insurance contracts regulations generally provide that, in income, gains and losses, realized or (‘‘VLI contracts’’) and variable annuity order to meet these diversification unrealized from such an account’s contracts (‘‘VA contracts’’) (together, requirements, all of the beneficial assets will be credited to or charged ‘‘variable contracts’’) issued through interests in the investment company against the account without regard to such accounts. As described more fully must be held by the segregated asset other income, gains or losses of the below, the Trust will only sell its shares accounts of one or more life insurance insurance company. If a VLI account or to registered VLI accounts and companies. Notwithstanding this, the VA account is registered as an registered VA accounts if each regulations also contain an exception to investment company, it will be a participating insurance company this requirement that permits trustees of ‘‘separate account’’ as defined by Rule sponsoring such a VLI account or VA a qualified pension or retirement plan to 0–1(e) (or any successor rule) under the account enters into a participation hold shares of an investment company, Act and will be registered as a unit agreement with the Trust. The the shares of which are also held by investment trust. For purposes of the participation agreements will define the insurance company segregated asset Act, the life insurance company that relationship between the trust and each accounts, without adversely affecting establishes such a registered VLI participating insurance company and the status of the investment company as account or VA account is the depositor will memorialize, among other matters, an adequately diversified underlying and sponsor of the account as those the fact that, except where the investment for variable contracts issued terms have been interpreted by the agreement specifically provides through such segregated asset accounts Commission with respect to variable life otherwise, the participating insurance (Treas. Reg. 1.817–5(f)(3)(iii)). insurance and variable annuity separate company will remain responsible for 8. As a result of this exception to the accounts. establishing and maintaining any VLI general diversification requirement, 3. The plans will be pension or account or VA account covered by the qualified pension and retirement plans, retirement plans intended to qualify agreement and for complying with all such as the plans, may hold Trust shares under Sections 401(a) and 501(a) of the applicable requirements of state and and select a Fund of the Trust as an Code. Many of the plans will include a federal law pertaining to such accounts investment option without endangering cash or deferred arrangement and to the sale and distribution of the tax status of variable contracts as life (permitting salary reduction variable contracts issued through such insurance or annuities, respectively. contributions) intended to qualify under accounts. Trust shares sold to the plans would be Section 401(k) of the Code. The plans 6. The use of a common management held by the trustees of the plans as will also be subject to, and will be investment company (or investment required by Section 403(a) of ERISA. designed to comply with, the provisions portfolio thereof) as an investment The trustees or other fiduciaries of the of the Employee Retirement Income medium for both VLI accounts and VA plans may vote Trust shares held by Security Act of 1974 (‘‘ERISA’’) accounts of the same insurance their plans in their own discretion or, if applicable to either defined benefit or to company, or of two or more insurance the applicable plan so provides, vote defined contribution profit-sharing companies that are affiliated persons of such shares in accordance with plans. each other, is referred to herein as instructions from participants in such 4. Goldman Sachs is registered as a ‘‘mixed funding.’’ The use of a common plans. The use of a common broker-dealer under the Securities management investment company (or management investment company (or Exchange Act of 1934 and is a member investment portfolio thereof) as an investment portfolio thereof) as an of the National Association of Securities investment medium for VLI accounts investment medium for VLI accounts, Dealers, Inc. Goldman Sachs has been and/or VA accounts of two or more VA accounts and plans, is referred to as registered as an investment adviser insurance companies that are not ‘‘extended mixed funding.’’ under the Investment Advisers Act of affiliated persons of each other, is 1940 (the ‘‘Advisers Act’’) since 1981 referred to herein as ‘‘shared funding.’’ Applicants’ Legal Analysis and conducts its investment 7. The Trust may sell its shares 9. Rule 6e–2(b)(15) under the Act management activities through its directly to the plans. Changes in the provides partial exemptions from

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Sections 9(a), 13(a), 15(a), and 15(b) of serves as a vehicle for mixed funding such an organization. These Rules also the Act to VLI accounts supporting but does not permit such a VLI account recognize that, in connection with the scheduled premium VLI contracts and to invest in shares of a management Trust, there exists no necessity to apply to their life insurance company investment company that serves as a Section 9(a) to individuals in various depositors. The exemptions granted by vehicle for extended mixed funding or participating insurance companies who the Rule are available, however, only shared funding. would have no relationship to the Trust where the Trust offers its shares 11. In general, Section 9(a) of the Act other than that their employer utilizes exclusively to VLI accounts of the same disqualifies any person convicted of the Trust to support variable contracts. participati ng insurance company and/ certain offenses, and any company Applicants assert that no regulatory or of participating insurance companies affiliated with that person, from acting purpose would be served in extending that are affiliated persons of the same or serving in various capacities with the Section 9(a) monitoring participating insurance company and respect to a registered investment requirements because of mixed funding, then, only where scheduled premium company. More specifically, paragraph extended mixed funding or shared (3) of Section 9(a) provides that it is VLI contracts are issued through such funding. Participating insurance unlawful for any company to serve as VLI accounts. Therefore, VLI accounts, companies and plans are not expected investment adviser or principal their depositors and their principal to play any significant role in the underwriter for any registered open-end underwriters could not rely on the management of the Trust. Those exemptions provided by Rule 6e– investment company if an affiliated person of that company is subject to a individuals at Goldman Sachs, GSAM 2(b)(15) if shares of the Trust are held and GSAMI who would participate in by a VLI account through which flexible disqualification enumerated in Sections 9(a) (1), or (2). the management of the Trust will do so premium VLI contracts are issued, a VLI regardless of which VLI accounts, VA account of an unaffiliated participating 12. Subject to the limitations described above, Rule 6e–2(b)(15)(i) and accounts and plans invest in the Trust. insurance company, any VA account or The increased expense of extending the a plan. In other words, Rule 6e–2(b)(15) (ii) and Rule 6e–3(T)(b)(15) (i) and (ii) Section 9(a) monitoring requirements to does not permit a scheduled premium provide exemptions from Section 9(a) to participating insurance companies or VLI account to invest in shares of a VLI accounts and their affiliates under plans could reduce the net return management investment company that certain circumstances and subject to realized by investors in VLI accounts, serves as a vehicle for mixed funding, certain conditions that would limit the VA accounts or plans and would not extended mixed funding or shared application of the eligibility restrictions provide any material benefit to such funding. to affiliated individuals or companies that directly participate in the investors. 10. Rule 6e–3(T)(b)(15) under the Act management of the Trust. The relief 14. Rule 6e–2(b)(15)(iii) and Rule 6e– provides partial exemptions from provided by Rule 6e–2(b)(15)(i) and Sections 9(a), 13(a), and 15(b) of the Act 3(T)(b)(15)(iii) provide partial Rule 6e–(T)(b)(15)(i) permits a person exemptions from Sections 13(a), 15(a) to VLI accounts supporting flexible disqualified under Section 9(a) to serve premium variable life insurance and 15(b) of the Act to the extent that as an officer, director, or employee of a those Sections have been deemed by the contracts and their life insurance participating insurance company, or any company depositors. The exemptions Commission to require ‘‘pass-through’’ of the insurance company’s affiliates, as voting with respect to management granted by the Rule are available, long as that person does not participate however, only where the Trust offers its investment company shares held by an directly in the management or insurance company separate account, in shares exclusvely to VLI accounts administration of the Trust. The relief order to permit the insurance company (through which either scheduled provided by Rule 6e–2(b)(15)(ii) and to disregard the voting instructions of its premium or flexible premium contracts Rule 6e–3(T)(b)(15)(ii) permits a VLI contract owners (‘‘VLI owners’’) in are issued) of the same participating participating insurance company to certain limited circumstances. Because insurance company and/or of serve as the Trust’s investment adviser participating insurance companies that or principal underwriter, provided that the Commission has deemed Sections are affiliated persons of the same none of its personnel who are ineligible 13(a), 15(a) and 15(b) to require a participating insurance company, VA pursuant to Section 9(a) of the Act are participating insurance company to vote accounts of the same participating participating in the management or all shares of the Trust held by a VLI insurance company or of affiliated administration of the Trust. account in accordance with instructions participating insurance companies, or 13. The partial relief provided by from VLI owners, the partial exemptions the general account of the same Rules 6e–2(b)(15) and 6e–3(T)(b)(15) from these sections provided by participating insurance company or of limits, in effect, the amount of subparagraph (b)(15)(iii)(A) of Rule 6e– affiliated participating insurance monitoring of personnel that a 2 and subparagraph (b)(15)(iii)(A)(1) of companies. Therefore, VLI accounts, participating insurance company and its Rule 6e–3(T) would permit a their depositors and their principal affiliates would otherwise have to participating insurance company to underwriters could not rely on the conduct to ensure compliance with disregard the voting instructions of such exemptions provided by Rule 6e– Section 9 to that which is appropriate in VLI owners when required to do so by 3(T)(b)(15) if shares of the Trust are held light of the policy and purposes of any insurance regulatory authority by a VLI account of an unaffiliated Section 9. These Rules recognize that it (subject to the provisions of paragraphs participating insurance company, a VA is not necessary for the protection of (b)(5)(i) and (b)(7)(ii)(A) of Rules 6e–2 account of an unaffiliated participating investors or the purposes fairly intended and 6e–3(T)), if following such insurance company, the general account by the policy and provisions of the Act instructions would cause the insurance of an unaffiliated participating to apply the provisions of Section 9(a) company to: (a) Make (or refrain from insurance company or a plan. In other to the many hundreds of individuals in making) certain investments that would words, Rule 6e–3(T)(b)(15) permits VLI a large insurance company complex, result in changes in the subclassification accounts supporting flexible premium most of whom typically have no or investment objectives of the Trust; or VLI contracts to invest in shares of a involvement in matters pertaining to (b) approve or disapprove any contract management investment company that investment companies affiliated with between the Trust and GSAM or GSAMI

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(or another investment adviser or flexible premium VLI contracts would, fiduciaries) have a fiduciary duty to subadviser), as investors in the Trust, have virtually participants that is similar to the 15. Subparagraph (b)(15)(iii)(B) of identical interests. obligations that a participating Rule 6e–2 and subparagraph 20. Each Fund of the Trust will be insurance company has to look after the (b)(15)(iii)(A)(2) of Rule 6e–3(T) would managed to attempt to achieve the interests of its VLI owners and VA permit a participating insurance investment objective or objectives of owners. In this respect, Applicants note company to disregard the voting such Fund, and not to favor or disfavor that participating insurance companies instructions of such VLI owners if the any particular participating insurance and their VLI accounts would not owners initiate any change in the company or type of variable contract. require any exemptions from the Act Trust’s investment policies, principal Applicants assert that there is no reason other than those necessary for mixed underwriter, or investment adviser to believe that the different features of funding and shared funding if (provided that disregarding such voting various types of variable contracts, participants in certain qualified pension instructions is reasonable and subject to including any ‘‘minimum death benefit’’ and retirement plans invest indirectly in the other provisions of paragraphs guarantee under certain VLI contracts, the Trust when their plan purchases a (b)(5)(ii), (b)(7)(ii)(B) and (b)(7)(ii)(C) of will lead to different investment variable annuity contract offered by a Rules 6e–2 and 6e–3(T)). policies for different types of variable participating insurance company in the 16. Because the Commission has contracts. To the extent that the degree qualified plan market. The various plans deemed Sections 13(a), 15(a) and 15(b) of risk may differ between VLI contracts may or may not offer an annuity option. to require any participating insurance and VA contracts, the different 25. In light of the fact that plan company to vote all shares of the Trust insurance charges imposed, in effect, investors would have beneficial interest held by the insurer’s VLI accounts in adjust any such differences and equalize in the Trust very similar to those of VLI accordance with instructions from the insurers’ exposure to risk in either owners and VA owners, Applicants owners of variable life insurance case. assert that, provided that they (and VLI contracts issued through such account, 21. Furthermore, no single investment accounts and participating insurance the partial exemption from these strategy can be identified as appropriate companies) comply with the conditions sections provided by subparagraph to one particular type of variable explained below, the addition of the (b)(15)(iii) of Rule 6e–2 and contract but not another. Each pool of plans as shareholders of the Trust and subparagraph (b)(15)(iii)(A)(1) of Rule VLI owners and VA owners is composed the addition of participants as persons 6e–3(T) is one that almost all VLI of individual of diverse financial status, having beneficial interests in the Trust accounts and their participating age, and insurance and investment should not increase the risk of material insurance companies may need to rely goals. A Fund of the Trust supporting irreconcilable conflicts among and on. one type of variable contract must between investors. Applicants further 17. Both Rule 6e–2 and Rule 6e–3(T) accommodate these diverse factors in assert that even if a material generally recognize that a variable life order to attract and retain owners of irreconcilable conflict involving the insurance contract is primarily a life other types of variable contracts. plans, or participants arose, the trustees insurance contract containing many Permitting mixed funding will facilitate (or other fiduciaries) of the plans, unlike important elements unique to life the success of each Fund and will participating insurance companies, can, insurance contracts and subject to broaden the base of VLI owners and VA if their fiduciary duty to the participants extensive state insurance regulation. owners and encourage the Trust to add requires if, redeem the shares of the Applicants assert that in adopting additional Funds. Trust held by the plans and make subparagraph (b)(15)(iii) of these Rules, 22. Applicants maintain that qualified alternative investments without the Commission implicitly recognized retirement plan investors in the Trust obtaining prior regulatory approval. that state insurance regulators have would have substantially the same Similarly, most, if not all, of the plans, authority, pursuant to state insurance interests as do VLI owners and VA unlike the VLI accounts or the VA laws or regulations, to disapprove or owners. Like VLI and VA owners, accounts, may hold cash or other liquid require changes in investment policies, qualified retirement plan investors are asserts pending their reinvestment in a investment advisers, or principal long-term investors. Therefore, most can suitable alternative investment. underwriters. be expected not to withdraw their assets 26. Applicants maintain that VLI 18. If the Trust serves as an from the plans. owners and VA owners would benefit investment vehicle for mixed funding, 23. In additional, neither VLI and VA from the expected increase in net assets extended mixed funding or shared owners on the one hand nor plan of the Funds of the Trust occasioned by funding, the exemptions otherwise investors on the other would be taxed participant investments. Not only provided by Rule 6e–2(b)(15) would not on the investment return of their should such additional investments not be available to VLI accounts and their respective investments in the Trust. increase the likelihood of material participating insurance company Therefore, they would share a strong irreconcilable conflicts of interest depositors and principal underwriters. interest in the Trust operating in a between or among different types of Likewise, if the Trust serves as an manner that preserves this tax status. investors, but such additional investment vehicle for extended mixed For example, material conflicts between investments should reduce some of the funding or shared funding, the these two groups of investors regarding costs of investing for variable contract exemptions otherwise provided by Rule capital transactions would be unlikely owners. In particular, additional 6e–3(T)(b)(15) would not be available to to occur. In this regard, ERISA imposes investments would promote economies VLI accounts and their participating general diversification requirements on of scale, permit increased safety through insurance companies and principal qualified pension or retirement plan greater portfolio diversification, provide underwriters. investments that are wholly consistent each Fund’s investment adviser with 19. Applicants maintain that VLI with those required of each Fund of the greater flexibility due to a larger owners and VA owners, as investors in Trust under Section 817(h) of the Code. portfolio and make the addition of the Trust, would have substantially 24. VLI accounts. VA accounts and future new Funds more feasible. identical interests. Likewise, owners of the plans are governed in similar ways. 27. When the Commission last revised scheduled premium VLI contracts and Plan committees (and other plan Rule 6e–3(T) in 1987, the Treasury

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Department had not issued the current (or advisers) or another named fiduciary irreconcilable conflicts arising between regulations (Treas. Reg. 1.817–5) which to exercise voting rights in accordance or among the interests of VLI owners, make it possible for the Trust to sell with instructions from participants. VA owners and plan investors than shares to qualified pension or retirement 31. Where plans provide participants would extended mixed funding where plans without adversely affecting the tax with the right to give voting only separate accounts of affiliated status of VLI contracts and VA instructions, Applicants see no reason participating insurance companies held contracts. Applicants submit that, to believe that participants in the plans such shares. although proposed regulations had been generally or those in a particular plan, 36. A particular state insurance published, the Commission did not either as a single group or in regulator could require action of an envision this possibility when it last combination with participants in other insurer domiciled or licensed in its examined paragraph (b)(15) of the Rule plans, would vote in a manner that jurisdiction that conflicts with or is and might well have broadened the would disadvantage VLI owners or VA inconsistent with the regulatory exclusivity provision of that paragraph owners. The purchase of Trust shares by requirements of or actions required by at that time to include plans such as the plans that provide voting rights does the regulator of another state where the those covered by this application had not present any complications not insurer is domiciled or licensed. The this possibility been apparent. In this otherwise occasioned by mixed funding fact that different insurance companies regard, the Commission has recently or by shared funding. are domiciled in different states does issued several orders under Section 6(c) 32. Section 817(h) of the Code is the not enlarge or create significantly granting the same exemptions requested codification of certain aspects of a series different issues in connection with herein to other Applicants in very of published and unpublished rulings conflicting state regulatory similar circumstances. issued by the Internal Revenue Service requirements. Affiliation among or 28. In light of the fact that the directed at the control of investments between such insurance companies does proposed plan investments in the Trust supporting VLI contracts and VA not diminish the potential for such should not increase the likelihood of contracts. In light of Treasury issues to arise nor, in light of the source material irreconcilable conflicts and Regulation 1.817–5(f)(3)(iii) which of such issues, does it dramatically would otherwise benefit VA owners and specifically permits ‘‘qualified pension increase the likelihood of their being VLI owners and in light of the recent or retirement plans’’ and separate resolved. supporting precedent, Applicants accounts to share the same underlying 37. Concern also has existed that believe that the Commission should management investment company, material irreconcilable conflicts grant the requested exemptions. Applicants have concluded that neither between or among the interests of VLI 29. Applicants do not believe that the Code, nor other Treasury owners and/or VA owners of plan investments in the Trust would Regulations or revenue rulings unaffiliated insurance companies were increase the potential for material thereunder, would create any inherent more likely to arise in the event that irreconcilable conflicts of interest conflicts of interest between or among such companies exercised their limited between or among different types of plan investors, VLI owners and VA right to disregard VLI owner voting investors. Section 403(a) of ERISA owners. instructions than would be the case provides that the trustee(s) of a plan 33. Although there are differences in between or among affiliated companies. must have exclusive authority and the manner in which distributions from Applicants assert, however, that the discretion to manage and control the the plans and distributions from VLI right of an insurance company to plan with two exceptions: (a) When the and VA contracts are taxed, Applicants disregard VLI owner voting instructions plan expressly provides that the maintain that these differences will does not raise any issues different from trustee(s) is subject to the direction of a have no impact on the Trust. VLI those raised by the authority of different named fiduciary who is not a trustee in accounts, VA accounts, participating state insurance regulators over separate which event the trustee(s) is subject to insurance companies and the plans each accounts. Similarly, affiliation between proper directions made in accordance will redeem Trust shares in the same or among insurance companies does not with the terms of the plan and not manner and using the same procedures. diminish or eliminate the potential for contrary to ERISA; and (b) when the Each will purchase and redeem such divergent judgments by such companies authority to manage, acquire or dispose shares at net asset value in conformity as to the advisability or legality of a of assets of the plan is delegated to one with Rule 22c–1 under the Act. change in investment policies, principal or more investment advisers pursuant to 34. Applicants do not see any greater underwriter or investment adviser of a Section 402(c)(3) of ERISA. Absent one potential for material irreconcilable mutual fund in which their separate of these exceptions, the trustee(s) of the conflicts arising between the interests of account invests. Applicants believe that plan would have the exclusive authority plan investors and over Trust investors the potential for disagreement between and responsibility for exercising voting from possible future changes in the or among insurance companies is rights attributable to their plan’s federal tax laws than that which already limited by requirements in Rule 6e–2 investment securities. Where a named exists with regard to such conflicts and Rule 6e–3(T) that a company’s fiduciary appoints an investment arising between VLI owners and VA disregard of voting instructions be adviser, the adviser has the authority owners. reasonable and based on specific good and responsibility to exercise such 35. Applicants assert that the holding faith determinations. Moreover, in the voting rights unless the authority and of Trust shares by separate accounts of event that a decision by a participating responsibility is reserved to the unaffiliated insurance companies would life insurance company to disregard VLI trustee(s) or a non-trustee fiduciary. not entail greater potential for material owners’ voting instructions represents a 30. Applicants generally expect many irreconcilable conflicts arising between minority position or would preclude a of the plans to have their trustees or or among the interests of VLI owners majority vote at a Trust shareholders other fiduciaries exercise voting rights and VA owners than would mixed meeting, the company could be required attributable to investment securities funding. Likewise, the holding of Trust by the Trust’s board of trustees to held by the plan in their discretion. shares by separate accounts of withdraw from the Trust. Some of the plan, however, may provide unaffiliated insurance companies would 38. Various factors have discouraged for the trustee(s), an investment adviser not entail greater potential for material a number of life insurance companies

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The Commission and operating a funding medium (such well as any additional guidelines has previously granted exemptions to as the Trust), the lack of expertise with established by trustees of the Trust. classes of similarly situated parties in respect to investment management GSAM and GSAMI manage client various contexts and from a wide (principally with respect to equity accounts, and would manage each Fund variety of circumstances, including class investments and derivative instruments) of the Trust, without regard to the exemptions in the context of mixed and the lack of name recognition by the identity of the investors in such funding, extended mixed funding and public of many such insurers as accounts. Thus, each Fund will be shared funding. investment professionals with whom an managed in the same manner as any investor can feel comfortable entrusting other open-end management investment Applicants’ Conditions their investment dollars. For example, a company. 1. Applicants represent and agree that number of smaller life insurance 41. Applicants see no legal if the exemptions requested herein are companies do not find it economically impediment to permitting the Trust to granted, the Trust will only sell shares feasible, or within their investment or serve as a vehicle for mixed funding, to VLI accounts if the following administrative expertise, to enter the extended mixed funding and shared conditions are met: variable contract business on their own. funding. The Commission has issued a. A majority of the board of trustees Use of the Funds of the Trust as a mixed numerous orders permitting mixed of the Trust shall consist of persons who funding and shared funding vehicle for funding, extended mixed funding and are not interested persons of the Trust variable contracts would reduce or shared funding. Therefore, granting the or interested persons of such persons. eliminate such concerns for small life exemptions requested herein is in the For this purpose, interested persons insurance companies. public interest and will not compromise means ‘‘interested persons’’ as defined 39. Permitting the Trust to serve as a the regulatory purpose of Section 9(a), by Section 2(a)(19) of the Act, and rules mixed funding and shared funding 13(a), 15(a) or 15(b) of the Act or of thereunder, and as modified by any vehicle also should provide several Rules 6e–2 and 6e–3(T) thereunder. applicable Commission orders, except 42. Section 6(c) of the Act authorizes benefits to variable contract owners by that if this condition is not met by the Commission to exempt any person, eliminating a significant portion of the reason of the death, disqualification, or security, or transaction or any class of costs of establishing and administering bona fide resignation of any trustee or persons, securities, or transactions from separate mutual funds. Participating trustees, then the operation of this insurance companies would benefit not any provision or provisions of the Act condition shall be suspended for: (1) A only from the investment and and/or any rule under it if, and to the period of 45 days if the vacancy or administrative expertise of GSAM and extent that, such exemption is necessary vacancies may be filled by the GSAMI, but also from the cost or appropriate in the public interest and remaining trustees, (2) a period of 60 efficiencies and investment flexibility consistent with the protection of days if a vote of shareholders is required afforded by a large pool of assets. investors and the purposes fairly to fill the vacancy or vacancies, or (3) Permitting the Trust to serve as a mixed intended by the policy and provisions of such longer period as the Commission and shared funding vehicle also should the Act. Applicants request an order of may prescribe by order upon make a greater amount of assets the Commission that would exempt VLI application. available for investment by each Fund accounts and their participating than would otherwise be the case and, insurance companies and principal b. The board of trustees of the Trust thereby, promote economies of scale, underwriters as a class from the shall monitor the Trust for the existence increase the safety of a Fund by provisions of Sections 9(a), 13(a), 15(a) of any material irreconcilable conflicts increasing diversification of and 15(b) of the Act and Rule 6e–2 or between or among the interests of VLI investments, and/or make the addition Rule 6e–3(T)(b)(15) thereunder. The owners, VA owners and plan investors of new Funds more feasible. Therefore, exemption of these classes of parties is and determine what action, if any, making the Trust available to serve as a appropriate in the public interest and should be taken in response to those vehicle for mixed funding and shared consistent with the protection of conflicts. A material irreconcilable funding could encourage more life investors and the purposes fairly conflict may arise for a variety of insurance companies to offer variable intended by the policy and provisions of reasons, including: (1) An action by any contracts and thereby increase the Act because all of the potential state insurance regulatory authority, (2) competition in the variable contracts members of the class could obtain the a change in applicable federal or state market. Such competition, in turn, can foregoing exemptions for themselves on insurance, tax, or securities laws or be expected to result in more contract the same basis as the Applicants, but regulations, or a public ruling, private variation and in lower fees and charges. only at a cost to each of them that is not letter ruling, no-action or interpretive Applicants also assert that permitting justified by any public policy purpose. letter, or any similar action by the Trust to serve as a vehicle for As discussed below, the requested insurance, tax, or securities regulatory extended mixed funding will result in exemptions would only extend to VLI authorities, (3) an administrative or increased assets for the Funds. This also accounts whose participating insurance judicial decision in any relevant will benefit owners of variable contracts companies enter into participation proceeding, (4) the manner in which the by promoting economies of scale, agreements with the Trust, which investments of any Fund are being increasing the safety of Funds by agreements would subject such VLI managed, (5) a difference in voting increasing diversification of accounts to the conditions discussed instructions given by VLI owners, VA investments, and/or make the addition below. The Commission staff also would owners and plan investors, (6) a of new Funds more feasible. have the opportunity to review decision by a participating insurance 40. Applicants submit that regardless compliance with these conditions by company to disregard VLI or VA of the types of investors in the Trust, participating insurance companies contract owner voting instructions, and they each will be contractually and when it reviews the registration (7) a decision by a plan trustee (or other otherwise obligated to manage each statements under the Securities Act of plan fiduciary) to disregard voting Fund solely and exclusively in 1933 filed by each VLI account and VA instructions of plan participants.

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c. The Trust’s prospectus shall a. A majority vote of the disinterested ensuring that it and other participating disclose that: (1) Its shares are offered in trustees of the Trust shall represent a insurance companies calculate ‘‘pass- connection with mixed funding, conclusive determination as to the through’’ votes for VLI accounts and VA extended mixed funding and shared existence of a material irreconcilable accounts in a consistent manner. Each funding, (2) mixed funding, extended conflict between or among the interests participating insurance company also mixed funding and shared funding may of VLI owners, VA owners and plan will vote Trust shares held in any present certain conflicts of interest investors. For the purpose of registered VLI account or registered VA between VA owners, VLI owners and subparagraph e below, a majority vote of account for which it has not received plan investors, and (3) the Trust’s board the disinterested trustees of the Trust timely voting instructions in the same of trustees will monitor the Trust for the shall represent a conclusive proportion as instructions received in a existence of any material irreconcilable determination as to whether any timely fashion from VA owners and VLI conflict of interest and determine what proposed action adequately remedies owners. action, if any, should be taken in any material irreconcilable conflict e. In the event that a material response to such a conflict. The Trust between or among the interests of VLI irreconcilable conflict of interest arises shall also notify the plan trustees and owners, VA owners and plan investors. between VA owners or VLI owners and participating insurance companies that The Trust shall notify each participating plan investors, each participating similar prospectus disclosure may be insurance company and plan in writing insurance company will, at its own appropriate in separate account of any determination of the foregoing expense, take whatever action is prospectuses or any plan prospectuses type. necessary to remedy such conflict as it or other plan disclosure documents. b. Each participating insurance adversely affects owners of its VA d. The Trust will comply with all of company will monitor its operations contracts or VLI contracts up to and the provisions of the Act relating to and those of the Trust for the purpose including: (1) Establishing a new security holder (i.e., persons such as VLI of identifying any material registered management investment owners and VA owners or participants irreconcilable conflicts or potential company, and (2) withdrawing assets in plans that provide participants with material irreconcilable conflicts attributable to reserves for the VA voting rights) voting including Section between or among the interests of plan contracts or VLI contracts subject to the 16(a), 16(b) (when applicable) and 16(c) investors, VA owners and VLI owners. conflict from the Trust and reinvesting (even though the Trust is not a trust of c. Each participating insurance such assets in a different investment the type described therein). company will report any such conflicts medium (including another Fund of the e. GSAM and GSAMI will report any or potential conflicts to the Trust’s Trust) or submitting the question of material irreconcilable conflicts or any board of trustees and will provide the whether such withdrawal should be potential material irreconcilable board, at least annually, with all implemented to a vote of all affected VA conflicts between or among the interests information reasonably necessary for the owners or VLI owners, and, as of VLI owners, VA owners and plan board to consider any issues raised by appropriate, segregating the assets investors to the Trust’s board of trustees such existing or potential conflicts or by supporting the contracts of any group of and will assist the board in carrying out these conditions. Each participating such owners that votes in favor of such the board’s responsibilities under these insurance company will also assist the withdrawal, or offering to such owners conditions. Such assistance will board in carrying out its responsibilities the option of making such a change. include, but not be limited to, providing under these conditions including, but Each participating insurance company the board, at least annually, with all not limited to: (1) Informing the board will carry out the responsibility to take information reasonably necessary for the whenever it disregards VLI owner or VA the foregoing action with a view only to board to consider any issues raised by owner voting instructions, and (2) the interests of owners of its VA such existing or potential conflicts. providing, at least annually, such other contracts and VLI contracts. f. All reports sent by participating information and reports as the board Notwithstanding the foregoing, each insurance companies or plans to the may reasonably request. Each participating insurance company will board of trustees of the Trust or notices participating insurance company will not be obligated to establish a new sent by the board to participating carry out these obligations with a view funding medium for any group of VA insurance companies or plans notifying only to the interests of owners of its VLI contracts or VLI contracts if an offer to the recipient of the existence of or contracts and VA contracts. do so has been declined by a vote of a potential for a material irreconcilable d. Each participating insurance majority of the VA owners or VLI conflict between the interests of VA company will provide ‘‘pass-through’’ owners adversely affected by the owners, VLI owners and plan investors voting privileges to owners of registered conflict. as well as board deliberations regarding VA contracts and registered VLI f. If a material irreconcilable conflict such conflicts or such potential conflicts contracts as long as the Act requires arises because of a participating shall be recorded in the board meeting such privileges in such cases. insurance company’s decision to minutes of the Trust or other Accordingly, such participating disregard the voting instructions of VLI appropriate records, and such minutes insurance companies, where applicable, owners or VA owners and that decision or other records shall be made available will vote Trust shares held in their represents a minority position or would to the Commission upon request. separate accounts in a manner preclude a majority vote at any Fund 2. In addition to the foregoing consistent with voting instructions shareholder meeting, then, at the conditions, Applicants consent to the timely received from owners of such request of the Trust’s board of trustees, following conditions and represent and VLI and VA contracts. Each the participating insurance company agree that if the exemptions requested participating insurance company will will redeem the shares of the Trust to herein are granted, the Trust will not vote Trust shares owned by itself (i.e., which the disregarded voting sell shares to any VLI account unless the that are not attributable to VA contract instructions relate. No charge or account’s participating insurance or VLI contract reserves) in the same penalty, however, will be imposed in company enters into a participation proportion as instructions received in a connection with such a redemption. agreement with the Trust containing timely fashion from VA owners and VLI g. Each participating insurance provisions that require the following: owners and shall be responsible for company and VLI account will continue

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Self-Regulatory Organizations; participating insurance company and Notwithstanding the foregoing, no plan Government Securities Clearing VLI account will instead comply with will be obligated to establish a new Corporation; Notice of Filing of an such amended or successor rule. funding medium for any group of Application for Clearing Agency 3. In addition to the foregoing participants or plan investors if an offer Registration conditions, Applicants consent to the following conditions and represent and to do so has been declined by a vote of January 8, 1998. agree that if the exemptions requested a majority of the plan’s participants or Notice is hereby given that on October herein are granted, the Trust will not plan investors adversely affected by the 2, 1997, the Government Securities sell shares of any Fund to a plan if such conflict. Clearing Corporation (‘‘GSCC’’) filed sale would result in the plan owning c. If a material irreconcilable conflict with the Securities and Exchange 10% more of that Fund’s outstanding arises because of a plan trustee’s (or Commission (‘‘Commission’’) an shares unless the plan first enters into other fiduciary’s) decision to disregard application, pursuant to Sections 17A a participation agreement with the Trust the voting instructions of plan and 19(a) of the Securities Exchange Act containing provisions that require the participants (of a plan that provides of 1934 (‘‘Act’’),1 requesting that the following: voting rights to its participants) and that Commission grant GSCC full registration a. The trustees or plan committees of decision represents a minority position as a clearing agency or in the alternative the plan will: (1) Monitor the plan’s or would preclude a majority vote at any extend GSCC’s temporary registration as operations and those of the Trust for the shareholder meeting, then, at the a clearing agency until such time as the purpose of identifying any material request of the Trust’s board of trustees, Commission is able to grant GSCC irreconcilable conflicts or potential permanent registration.2 The material irreconcilable conflicts the plan will redeem the shares of the Trust to which the disregarded voting Commission is publishing this notice to between or among the interests of plan solicit comments from interested instructions relate. No charge or investors, VA owners and VLI owners, persons. penalty, however, will be imposed in (2) report any such conflicts or potential On May 24, 1988, the Commission connection with such a redemption. conflicts to the Trust’s board of trustees, approved pursuant to Sections 17A and (3) provide the board, at least annually, 4. Applicants also represent and agree 19(a) of the Act and Rule 17Ab2–1(c) with all information reasonably that if the exemptions requested herein promulgated thereunder 3 the necessary for the board to consider any are granted, the Trust will not sell application of GSCC for registration as issues raised by such existing or shares of any Fund to a plan until the a clearing agency for a period of three potential conflicts and any other plan executes an application containing years.4 The Commission subsequently information and reports that the board an acknowledgement of the condition has extended GSCC’s registration until may reasonably request, (4) inform the that the Trust cannot sell shares of any February 28, 1998.5 board whenever it (or another fiduciary) Fund if such sale would result in that GSCC provides clearance and disregards the voting instructions of plan owning 10% or more of the Fund’s settlement services for its members’ plan participants (of a plan that transactions in government securities. provides voting rights to its outstanding shares unless that plan first enters into a participation agreement as GSCC offers its members services for participants), and (5) ensure that the next-day settling trades, forward settling plan votes Trust shares as required by described above. trades, auction takedown activity, and applicable law and governing plan Conclusion repurchase transactions. In connection documents. The trustees or plan with GSCC’ clearance and settlement committees of the plan will carry out For the reasons summarized above, services, GSCC provides a centralized these obligations with a view only to the Applicants assert that the requested loss allocation procedure and maintains interests of plan investors in its plan. exemptions are appropriate in the b. In the event that a conflict of margin to offset netting and settlement public interest and consistent with the risks. interest arises between plan investors protection of investors and the purposes and VA owners, VLI owners or other GSCC believes that it should obtain fairly intended by the policy and permanent registration and has investors in the Trust, each plan will, at provisions of the Act. its own expense, take whatever action is implemented several changes in the past necessary to remedy such conflict as it For the Commission, by the Division of year to enhance its operations. The adversely affects that plan or Investment Management, pursuant to Commission has recently approved participants in that plan up to and delegated authority. GSCC’s proposed rule change that including: (1) Establishing a new Jonathan G. Katz, institutes new election procedures for registered management investment Secretary. 1 15 U.S.C. 78q–1, 78s(a). company, and (2) withdrawing plan [FR Doc. 98–1040 Filed 1–14–98; 8:45 am] assets subject to the conflict from the 2 Letter from Sal Ricca, President and Chief BILLING CODE 8010±01±M Operating Officer, GSCC (September 25, 1997). Trust and reinvesting such assets in a 3 17 CFR 240.17Ab2–1. different investment medium (including 4 Securities Exchange Act Release No. 25740 (May another Fund of the Trust) or submitting 24, 1988), 53 FR 19639. the question of whether such 5 Securities Exchange Act Release Nos. 29067 withdrawal should be implemented to a (April 11, 1991), 56 FR 14542; 32385 (June 3, 1993), 58 FR 32405; 35787 (May 31, 1995), 60 FR 30324; vote of all affected plan investors and, 36508 (November 27, 1995), 60 FR 61719; 37983 as appropriate, segregating the assets of (November 25, 1996), 61 FR 64183; and 39698 (May any group of such participants that 30, 1997), 62 FR 30911.

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GSCC’s board of directors.6 Finally, SECURITIES AND EXCHANGE simulator, materials and supplies GSCC has received Commission COMMISSION inventory, office supplies, and furniture. In addition, CY seeks authority through approval for several enhancements to its [Release No. 35±26813] risk management procedures.7 December 31, 2002 for an exception In the order initially granting GSCC Filings Under the Public Utility Holding from the cost provisions of section 13(b) to sell to its associate companies at fair temporary registration, the Commission Company Act of 1935, as Amended market value credits it has received for discussed the need for GSCC to amend (``Act'') the enrichment process performed on its standard of care to an ordinary January 9, 1998. previously purchased nuclear fuel. negligence standard for all functions Notice is hereby given that the Associate companies to whom the goods affecting settlement of government following filing(s) has/have been made and/or credits may be sold could securities. GSCC is working with the with the Commission pursuant to include, but would not be limited to, Commission to develop the appropriate provisions of the Act and rules Northeast Nuclear Energy Company. liability structure. promulgated thereunder. All interested Based on its review of sales of similar Interested persons are invited to persons are referred to the application(s) items, including sales by other utilities submit written data, views, and and/or declaration(s) for complete implementing decommissioning plans arguments concerning the foregoing statements of the proposed for nuclear plants, CY expects that these application. Such written data, views, transaction(s) summarized below. The goods and credits have a fair market and arguments will be considered by the application(s) and/or declaration(s) and value that is substantially below their any amendments thereto is/are available Commission in granting registration or book cost to CY. CY believes that a for public inspection through the instituting proceedings to determine requirement prohibiting the sale of these Commission’s Office of Public assets to associate companies at whether registration should be denied Reference. in accordance with Section 19(a)(1) of competitive prices will substantially Interested persons wishing to limit the pool of potential bidders and the Act.8 Persons making written comment or request a hearing on the submissions should file six copies hinder its ability to wind down its application(s) and/or declaration(s) business activities economically. thereof with the Secretary, Securities should submit their views in writing by and Exchange Commission, 450 Fifth February 2, 1998, to the Secretary, For the Commission, by the Division of Street, N.W., Washington, DC 20549. Securities and Exchange Commission, Investment Management, pursuant to Copies of the amended application for Washington, D.C. 20549, and serve a delegated authority. registration and all written comments copy on the relevant applicant(s) and/or Jonathan G. Katz, will be available for inspection and declarant(s) at the address(es) specified Secretary. copying in the Commission’s Public below. Proof of serve (by affidavit or, in [FR Doc. 98–1039 Filed 1–14–98; 8:45 am] Reference Section, 450 Fifth Street, case of an attorney at law, by certificate) BILLING CODE 8010±01±M N.W., Washington, DC 20549. All should be filed with the request. Any submissions should refer to File No. request for hearing shall identify SECURITIES AND EXCHANGE 600–23 and should be submitted by specifically the issues of fact or law that COMMISSION February 5, 1998. are disputed. A person who so requests will be notified of any hearing, if For the Commission by the Division of Sunshine Act Meeting Market Regulation, pursuant to delegated ordered, and will receive a copy of any authority.9 notice or order issued in the matter. FEDERAL REGISTER CITATION OF PREVIOUS After said date, the application(s) and/ ANNOUNCEMENT: [63 1878, January 12, Jonathan G. Katz, or declaration(s), as filed or as amended, 1998] Secretary. may be granted and/or permitted to [FR Doc. 98–978 Filed 1–14–98; 8:45 am] become effective. STATUS: Closed Meeting. BILLING CODE 8010±01±M The Connecticut Yankee Atomic Power PLACE: 450 Fifth Street, N.W., Company (70–9101) Washington, D.C. The Connecticut Yankee Atomic DATE PREVIOUSLY ANNOUNCED: January Power Company (‘‘CY’’), 107 Selden 12, 1998. Street, Berlin, Connecticut 06337, a CHANGE IN THE MEETING: Time Change. 6 In the order initially granting GSCC temporary registration, the Commission granted GSCC several utility subsidiary of The New England The time for the closed meeting exemptions from certain provisions of the Act, Electric System and Northeast Utilities, scheduled for Thursday, January 15, including the fair representation standard in each a registered holding company, has 1998, at 10:00 a.m., has been changed to Section 17A(b)(3)(C) of the Act [15 U.S.C. 78q– filed an application-declaration under 2:00 p.m. 1(b)(3)(C)]. The Commission’s recent approval of sections 12(f) and 13(b) of the Act and At times, changes in Commission GSCC’s election procedures included a rules 54, 87, 90 and 91 under the Act. priorities require alterations in the determination that such procedures are consistent On December 4, 1996, the board of scheduling of meeting items. For further with the fair representation standard in Section directors of CY voted unanimously to 17A(b)(3)(C). Securities Exchange Act Release No. information and to ascertain what, if 39372 (November 28, 1997), 62 FR 64415. cease permanently the production of any, matters have been added, deleted 7 Securities Exchange Act Release Nos. 38340 power at its nuclear plant. In connection or postponed, please contact: (November 21, 1997), 62 FR 63405 (order approving with the cessation of production, CY The Office of the Secretary (202) 942– proposed rule change regarding GSCC’s loss seeks authority through December 31, 7070. allocation for blind brokered activity) and 39309 2002 for an exception from the cost (November 7, 1997), 62 FR 61158 (order approving provisions of section 13(b) to sell certain Dated: January 12, 1998. proposed rule change to institute an auto debit of its remaining non-seller produced Jonathan G. Katz, service). goods to its associate companies at fair Secretary. 8 15 U.S.C. 78s(a)(1). market value. These goods generally [FR Doc. 98–1114 Filed 1–13–98; 11:07 am] 9 17 CFR 200.30–3(a)(16). include equipment, including the BILLING CODE 8010±01±M

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SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s C. Self-Regulatory Organization’s COMMISSION Statement of the Purpose of, and Statement on Comments on the Statutory Basis for, the Proposed Rule Proposed Rule Change Received from [Release No. 34±39530; File No. SR±Amex± 97±45] Change Members, Participants or Others 1. Purpose No written comments were solicited Self-Regulatory Organizations; Notice or received with respect to the proposed of Filing and Order Granting The Exchange is proposing to rule change. Accelerated Approval of Proposed discontinue its Listed Put and Call Rule Change by the American Stock Option Questionnaire for Registered III. Solicitation of Comments Exchange, Inc. Relating to Options Personnel.3 This examination has been Interested persons are invited to Qualification Examinations administered to an Amex member or submit written data, views and registered employee who was registered arguments concerning the foregoing. January 8, 1998. and approved by the Exchange prior to Persons making written submissions Pursuant to Section 19(b)(1) of the 1977,4 and who wishes to engage in a should file six copies thereof with the Securities Exchange Act of 1934 public options business.5 The Listed Put Secretary, Securities and Exchange (‘‘Act’’),1 notice is hereby given that on and Call Option Questionnaire had been Commission, 450 Fifth Street, N.W., November 19, 1997, the American Stock administered by the broker-dealer Washington, D.C. 20549. Copies of the Exchange, Inc. (‘‘Amex’’ or ‘‘Exchange’’) member organization with which the submission, all subsequent filed with the Securities and Exchange individual was associated, which would amendments, all written statements Commission (‘‘Commission’’) the then certify to the Exchange that the with respect to the proposed rule proposed rule change as described in applicant had satisfactorily completed change that are filed with the Items I and II below, which Items have the examination. Commission, and all written been prepared by the self-regulatory The Exchange is proposing that, in communications relating to the organization. The Commission is lieu of the Listed Put and Call Option proposed rule change between the publishing this notice to solicit Questionnaire, members and registered Commission and any person, other than comments on the proposed rule change employees seeking to become qualified those that may be withheld from the from interested persons and to grant to engage in a public options business, public in accordance with the accelerated approval on the proposed pursuant to Exchange Rule 920(b) provisions of 5 U.S.C. 552, will be rule change. satisfactorily complete the Series 42 available for inspection and copying in I. Self-Regulatory Organization’s examination administered by the NASD. the Commission’s Public Reference Statement of the Terms of Substance of This examination is currently in use by Room in Washington, D.C. Copies of the Proposed Rule Change the NASD, and prior to the Exchange’s such filing will also be available for inspection and copying at the principal The Exchange is proposing to proposed termination of the Listed Put office of the Amex. All submissions discontinue the use of its Listed Put and and Call Option Questionnaire, affected should refer to the file number in the Call Option Questionnaire for individuals were able to take either of caption above and should be submitted Registered Personnel, and instead, the examinations in order to become by February 5, 1998. require affected individuals to options qualified. The Exchange, satisfactorily complete the Series 42 therefore, believes that the proposed IV. Commission’s Findings and Order examination administered by the termination of the Listed Put and Call Granting Accelerated Approval of National Association of Securities Questionnaire examination will result Proposed Rule Change 2 in greater industry-wide consistency in Dealers, Inc. (‘‘NASD’’). The Commission finds that the The text of the proposed rule change the qualification testing of registered personnel. Exchange’s proposal is consistent with is available at the Office of the the requirements of the Act and the Secretary, the Amex and at the 2. Statutory Basis rules and regulations thereunder Commission. The proposed rule change is applicable to a national securities II. Self-Regulatory Organization’s consistent with Section 6(b) of the Act, exchange. Specifically, the Commission Statement of the Purpose of, and specifically Section 6(b)(5) in that the finds that the proposed rule change is Statutory Basis for, the Proposed Rule proposal, in general, protects investors consistent with Section 6(b)(5) of the Act,6 Change and the public interest by helping to which requires that an exchange have rule that, in general, protect In its filing with the Commission, the assure member competence. In addition, investors and the public interest. self-regulatory organization included the proposal furthers the objectives of Moreover, the Commission finds the statements concerning the purpose of, Section 6(c)(3)(A) because it is designed proposed rule change consistent with and statutory basis for, the proposed to set standards of training, experience Section 6(c)(3)(A) of the Act 7 in that the rule change and discussed any and competence and to examine and proposal is designed to ensure that comments it received on the proposed verify the qualifications of its members members, and those persons associated rule change. The text of these statements and associated persons of its members. with members, meet certain standards of may be examined at the places specified B. Self-Regulatory Organization’s training, experience and competence. in Item III below. The self-regulatory Statement on Burden on Competition The Commission believes that organization has prepared summaries, replacing the Listed Put and Call Option The proposed rule change will impose set forth in sections A, B, and C below, Questionnaire for Registered Personnel no burden on competition. of the most significant aspects of such with the NASD’s series 42 will provide statements. more consistency in educating and 3 This examination was previously referred to as examining for competence for those 1 the Put and Call Option Questionnaire for Listed U.S.C. 78s(b)(1). who wish to engage in a public options 2 See Securities Exchange Act Release No. 33892 Personnel. (April 11, 1994), 59 FR 18433 (April 18, 1994) 4 In 1997 the Series 7 examination began to cover (release approving the Registered Options standardized options. 6 15 U.S.C. 78f(b)(5). Representative exam). 5 See Exchange Rule 920. 7 15 U.S.C. 78f(c)(3)(A).

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The Series 42, however, has together with the substance of the interest in the DIAMONDS Trust.8 The a question bank of 307 questions so a proposal, was published for comment in Sponsor will enter into a trust person who has failed the exam is Securities Exchange Act Release No. agreement with the Trustee, State Street unlikely to receive the same series of 39143 (September 29, 1997), 62 FR Bank and Trust Company, in accordance questions upon re-testing, thereby 51917 (October 3, 1997). No comments with Section 26 of the Investment assuring that an individual is properly were received on the proposal. The Company Act of 1940 (‘‘1940 Act’’). A tested for his competency in the subject Exchange filed Amendment No. 1 to the distributor will act as underwriter of matter. Moreover, the Commission proposed rule filing on December 3, DIAMONDS on an agency basis. All believes that because the Series 42 is 1997.3 This order approves the orders to create DIAMONDS in Creation only given at designated and secured proposed rule filing as amended. Unit size aggregations must be placed with the distributor, and it will be the testing sites the integrity of the II. Description examination process is protected. responsibility of the distributor to On December 11, 1992,4 the transmit such orders to the Trustee. The The Commission therefor finds good Commission approved Amex Rules 1000 distributor is a registered broker-dealer, cause for approving the proposed rule et seq. to accommodate trading on the and a member of the National change (SR–Amex–97–45) prior to the Exchange of Portfolio Depositary Association of Securities Dealers, Inc. thirtieth day after date of publication of Receipts (‘‘PDRsSM’’), securities which 9 notice thereof in the Federal Register. represent interests in a unit investment The Dow Jones Industrial Average It is Therefore Ordered, pursuant to trust (‘‘Trust’’) operating on an open-end The DJIA is a price-weighted stock Section 19(b)(2),8 that the proposed rule basis and that hold a portfolio of index consisting of 30 stocks traded on change be, and hereby is, approved. securities. The Trust sponsor the New York Stock Exchange For the Commission by the Division of (‘‘Sponsor’’) for each series of PDRs is (‘‘NYSE’’).10 The DJIA is called an Market Regulation, pursuant to delegated PDR Services Corporation, a wholly- ‘‘average’’ because originally it was authority.9 owned subsidiary of Amex.5 Each Trust calculated by adding up the component Jonathan G. Katz, is intended to provide investors with an stock prices and then dividing by the Secretary. instrument that closely tracks the number of stocks. The method remains [FR Doc. 98–1038 Filed 1–14–98; 8:45 am] underlying securities portfolio, that the same today, but the divisor (the BILLING CODE 8010±01±M trades like a share of common stock, and number that is divided into the total of that pays to PDR holders periodic the stock prices) has been increased to dividends proportionate to those paid eight significant digits to minimize SECURITIES AND EXCHANGE with respect to the underlying portfolio distortions due to rounding. The DJIA COMMISSION of securities, less certain expenses, as divisor is adjusted due to corporate described in the applicable Trust actions that change the price of any of [Release No. 34±39525; File No. SR±Amex± prospectus. The first Trust to be formed its component shares. The most frequent 97±29] in connection with the issuance of PDRs reason for such an adjustment is a stock was based on the Standard & Poor’s 500 split. For example, suppose a company Self-Regulatory Organizations; Index (‘‘S&P 500 Index’’), known as in the DJIA issues one new share for American Stock Exchange, Inc.; Order Standard & Poor’s Depositary Receipts each share outstanding. After this two- Granting Approval and Notice of Filing (‘‘SPDRs’’), which have been trading on for-one ‘‘split,’’ each share of stock is and Order Granting Accelerated the Exchange since January 29, 1993.6 In worth half what it was immediately Approval of Amendment No. 1 to the 1995, the Commission approved Amex’s before, other things being equal. But Proposed Rule Change Relating to listing and trading of PDRs based on the without an adjustment in the divisor, Listing and Trading of DIAMONDSSM Standard & Poor’s MidCap 400 IndexTM this split would produce a distortion in Trust Units (‘‘MidCap SPDRs’’).7 the DJIA. An adjustment must be made to compensate so that the ‘‘average’’ will January 8, 1998. 3 Amendment No. 1 discusses the composition of remain unchanged. At Dow Jones, this I. Introduction the trust securities, the basis for the mandatory adjustment is handled by changing the termination date of the Trust, applicable trading divisor.11 halt procedures, and applicable equity rules. See On August 11, 1997, the American letter from Michael Cavalier, Associate General promoted by S&P, and S&P makes no representation Stock Exchange, Inc. (‘‘Amex’’ or Counsel, Legal and Regulatory Policy, Amex, to regarding the advisability of investing in SPDRs or Sharon Lawson, Senior Special Counsel, Market ‘‘Exchange’’) submitted to the Securities MidCap SPDRs. Regulation, Commission, dated December 3, 1997. and Exchange Commission 8 SM SM 4 ‘‘Dow Jones Industrial Average ,’’ ‘‘DJIA ,’’ (‘‘Commission’’), pursuant to Section See Securities Exchange Act Release No. 31591 ‘‘Dow JonesSM’’ and ‘‘DIAMONDS’’ are each (December 11, 1992), 57 FR 60253 (December 18, trademarks and service marks of Down Jones & 19(b)(1) of the Securities Exchange Act 1992) (‘‘SPDRs Order’’). 1 Company, Inc. (‘‘Dow Jones’’) and have been of 1934 (‘‘Act’’) and Rule 19b–4 5 ‘‘PDRs’’ is a service mark of PDR Services Corp. licensed for use for certain purposes by the thereunder,2 a proposed rule change to 6 See SPDRs Order, supra note 4. Exchange and the Sponsor. DIAMONDS are not list and trade under Amex Rules 1000 7 See Securities Exchange Act Release No. 35534 sponsored, endorsed, sold or promoted by Dow et seq. DIAMONDSSM, units of (March 24, 1995), 60 FR 16686 (March 31, 1995). Jones, and Dow Jones makes no representation ‘‘Standard & Poor’s 500,’’ ‘‘Standard & Poor’s regarding the advisability of investing in such beneficial interest in the DIAMONDS MidCap 400 Index,’’ ‘‘Standard & Poor’s Depositary product. Trust. In addition, the Exchange Receipts,’’ ‘‘SPDRs,’’ ‘‘Standard & Poor’s MidCap 9 The description of the DJIA included herein is proposes to adopt Amex Rule 1005, 400 Depositary Receipts’’ and ‘‘MidCap SPDRs’’ are based on materials prepared by Dow Jones and trademarks of The McGraw-Hill Companies, Inc. submitted by Amex in its proposed rule filing. and are being used by the Exchange and the 10 A price-weighted index is an index in which 8 15 U.S.C. 78s(b)(2). Sponsor under license among Standard & Poor’s, a component stocks are weighted according to their 9 17 CFR 200.30–3(a)(12). division of The McGraw-Hill Companies, Inc., the price. 1 15 U.S.C. 78s(b)(1). Exchange and the Sponsor. ‘‘SPDRs’’ and ‘‘MidCap 11 Currently, the divisor is recalculated after the 2 17 CFR 240.19b–4. SPDRs’’ are not sponsored, endorsed, sold, or close of business on the day prior to the occurrence

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Changes in the composition of the the ‘‘Cash Component’’ in the case of a dividends less expenses through the DJIA are made entirely by the editors of creation. The securities and cash previous day’s close, and (c) on a daily The Wall Street Journal without accepted by the Trustee are referred to, basis, the accumulated dividends, less consultation with the companies, the in the aggregate, as a ‘‘Portfolio expenses, per outstanding DIAMONDS respective stock exchange, or any Deposit.’’ Unit. official agency. Additions or deletions The mandatory termination date of Transactions in DIAMONDS may be of components may be made to achieve the Trust will be the first to occur of (i) effected on the Exchange until 4:15 p.m. better representation of the broad January 30, 2122 or (ii) the date 20 years New York time each business day. The market and of American industry.12 after the death of the last survivor of minimum fractional change for eleven persons named in the trust DIAMONDS shall be 1⁄64 of $1.00. The DIAMONDS Trust agreement between the Trust Sponsor To be eligible to place orders to create and the Trustee.15 Redemption DIAMONDS as described below, an DIAMONDS in Creation Unit size Issuance entity or person must either be a aggregations generally18 will be participant in the Continuous Net Upon receipt of a Portfolio Deposit in redeemable in kind by tendering them Settlement (‘‘CNS’’) system of the payment for a creation order placed to the Trustee. While holders may sell National Securities Clearing Corporation through the distributor as described DIAMONDS in the secondary market at (‘‘NSCC’’) or a Depository Trust above, the Trustee will issue a specified any time, they must accumulate at least Company (‘‘DTC’’) participant. Upon number of DIAMONDS, which aggregate 50,000 (or multiples thereof) to redeem acceptance of an order to create number is referred to as a ‘‘Creation through the Trust. DIAMONDS will DIAMONDS, the distributor will Unit.’’ A Creation Unit for DIAMONDS remain outstanding until redeemed or instruct the Trustee to initiate the book- will be made up of 50,000 DIAMONDS. until the termination of the Trust. entry movement of the appropriate Individual DIAMONDS can then be Creation Units generally will be number of DIAMONDS to the account of traded in the secondary market like redeemable on any business day in the entity placing the order. other equity securities.16 The exchange for a portfolio of the securities DIAMONDS will be registered in book DIAMONDS Trust has been structured held by the Trust identical in entry only, which records will be kept to provide for the initial issuance of composition to the securities portion of by DTC. DIAMONDS at a per unit price which a Portfolio Deposit in effect on the date Payment with respect to creation would approximate 1/100th of the value request is made for redemption, together orders placed through the distributor of the DJIA.17 with a ‘‘Cash Redemption Payment’’ (as will be made by (1) the ‘‘in-kind’’ It is expected that the Trustee or defined in the Trust prospectus), deposit with the Trustee of a specified Sponsor will make available (a) on a including accumulated dividends, less portfolio of securities that is daily basis a list of the names and expenses, through the date of substantially similar in composition to required number of shares for each of redemption. The number of shares of the component shares of the underlying the securities in the current Portfolio each of the securities transferred to the index or portfolio;13 (2) a cash payment Deposit; (b) on a minute-by-minute basis redeeming holder generally will be sufficient to enable the Trustee to make throughout the day, a number number of shares of each of the a distribution to the holders of representing the value (on a per component stocks in a Portfolio Deposit beneficial interests in the Trust on the DIAMONDS Unit basis) of the securities on the day of redemption notice is next dividend payment date as if all the portion of a Portfolio Deposit in effect received by the Trustee, multiplied by securities had been held for the entire on such day, plus accumulated the number of Creation Units being accumulation period for the distribution redeemed. Nominal service fees may be (‘‘Dividend Equivalent Payment’’), 15 Amex state that the basis of the mandatory termination date of the Trust is to comply with the charged in connection with the creation subject to certain specified common law rule against perpetuities which and redemption of Creation Units. The adjustments;14 and (3) a cash payment provides, in brief, that no estate is valid unless it Trustee will cancel all tendered or adjustment calculated by the Trustee must vest no later than twenty-one years after lives Creation Units upon redemption. to enable the securities portfolio portion in being at the creation if the estate, and that any future or present estate is void in its creation if it Distributions to equal the net asset value of the Trust suspends the absolute power of alienation longer (the ‘‘Balancing Amount’’). The than this period. See Amendment No. 1, supra note The DIAMONDS Trust will pay Balancing Amount and the Dividend 3. monthly dividends. The first ex- Equivalent Payment are referred to as 16 The DIAMONDS Trust, Series I, filed with the dividend date for DIAMONDS will be Commission’s Division of Investment Management the third Friday of the third full month an application seeking, among other things, an of the split. The formula used to calculate divisor order: (1) permitting secondary market transactions following the commencement date of adjustments is: New Divisor=Current in DIAMONDS at negotiated prices, rather than at × Divisor Adjusted Sum/Unadjusted of Prices Sum of a current public offering price described in the 18 The Trustee shall have the discretion to deliver Prices. prospectus as required by Section 22(d) of the 1940 the cash equivalent value of an Index security or 12 For further details on how the DJIA is Act and Rule 22c–1; and (2) permitting the sale of Index securities, based on the market value of such maintained, see the Commission’s order approving DIAMONDS to purchasers in the secondary market Index security or securities as of the Evaluation the trading of options on the DJIA (File No. CBOE– unaccompanied by a prospectus, when prospectus Time on the date such redemption is deemed 97–26) in Securities Exchange Act Release No. delivery is not required by Section 4(3) of the received by the Trustee, as a part of the Cash 39011 (September 3, 1997), 62 FR 47841 (September Securities Act of 1933 but may be required Redemption Payment in lieu of delivering the Index 11, 1997). according to Section 24(d) of the 1940 Act for security or securities if: (1) the Trustee determines 13 The securities included in the Portfolio Deposit redeemable securities issued by a Unit Investment in its discretion that an Index security is likely to generally will include all of the component Trust. The Commission granted these exemptions be unavailable or available in insufficient quantity securities of the DJIA. The Trust will not hold an on December 30, 1997. The exemptions permit for delivery by the Trust upon redemption; or (2) optimized portfolio such as is the case with World individual DIAMONDS to be traded in secondary a redeeming investor requests redemption in cash Equity Benchmark Shares (‘‘WEBS’’), but will hold market transactions similar to a closed-end with respect to one or more Index securities, if, for shares of all of the securities included in the DJIA. investment company. See Investment Company Act example, the redeemer is restricted by regulation or The Trustee will hold, as nearly as practicable, an Release No. 22979 (December 30, 1997). otherwise from investing or engaging in a equal number of shares of each of the DJIA 17 As of August 7, 1997 it is estimated that the transaction in one or more Index securities. See securities. See Amendment No. 1, supra note 3. value of such an individual DIAMONDS Unit Draft Preliminary Prospectus for DIAMONDS Trust, 14 See ‘‘Distributions’’ infra. would be approximately $81.88. Series 1, at 36.

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Holders of DIAMONDS until termination and there have been (‘‘OEX’’), S&P 500 (‘‘SPX’’), or MMI as reflected on the records of the DTC fewer than 50 record and/or beneficial (‘‘XMI’’), in deciding whether to halt and the DTC Participants on the second holders of the PDRs for 30 or more trading in DIAMONDS or other index- business day following the ex-dividend consecutive trading days; or based derivative securities.22 date will be entitled to receive an (b) if the index on which the Trust is amount representing dividends based is no longer calculated; or Terms and Characteristics accumulated through the monthly (c) if such other event shall occur or Under Amex Rule 1000, Commentary dividend period which ends on the condition exists which, in the opinion .01, Amex members and member business day preceding such ex- of the Exchange, makes further dealings organizations are required to provide to dividend date net of fees and expenses on the Exchange inadvisable. all purchasers of DIAMONDS a written accrued daily for such period. The A Trust shall terminate upon removal description of the terms and payment of dividends will be made on from Exchange listing and its PDRs characteristics of such securities, in a the first business day coincident with or redeemed in accordance with provisions form prepared by the Exchange, not following the Monday preceding the of the Trust prospectus. A Trust may later than the time a confirmation of the third Friday in the calendar month also terminate under such other first transaction in each series is following the ex-dividend date (the conditions as may be set forth in the delivered to such purchaser. The ‘‘Dividend Payment Date’’). On the Trust prospectus. For example, the Exchange also requires that such Dividend Payment Date, dividends Sponsor, following notice to PDR description be included with any sales payable for those securities with ex- holders, shall have discretion to direct material on DIAMONDS that is dividend dates falling within the period that the Trust be terminated if the value provided to customers or the public. In from the ex-dividend date most recently of securities in such Trust falls below a addition, the Exchange requires that preceding the current ex-dividend date specified amount.19 The DIAMONDS members and member organizations will be distributed. The Trustee will Trust may also terminate if the license provide customers the prospectus for compute on a daily basis the dividends agreement with Dow Jones terminates. DIAMONDS upon request. accumulated within each monthly Trading Halts A member or member organization dividend period. Dividend payments carrying an omnibus account for a non- will be made through DTC and its Prior to commencement of trading in member broker-dealer is required to participants to all such holders with DIAMONDS, the Exchange will issue a inform such non-member that execution funds received from the Trustee. The circular to members informing them of of an order to purchase DIAMONDS for DIAMONDS Trust intends to make the Exchange policies regarding trading such omnibus account will be deemed DTC Dividend Reinvestment Service halts in such securities. The circular to constitute agreement by the non- available for use by DIAMONDS holders will make clear that, in addition to other member to make such written through DTC Participant brokers for factors that may be relevant, the description available to its customers on reinvestment of their cash proceeds. An Exchange may consider factors such as the same terms as are directly applicable interested investor would have to those set further in Rule 918C(b) in to members and member organizations. consult his or her broker to ascertain the exercising its discretion to halt or Prior to commencement of trading of availability of dividend reinvestment suspend trading. These factors would DIAMONDS, the Exchange will through such broker. include whether trading has been halted distribute to Exchange members and or suspended in the primary market(s) Criteria for Initial and Continued Listing member organizations an Information for any combination of underlying Circular calling attention to these Because of the open-end nature of the stocks accounting for 20% or more of requirements as well as the Trust upon which a series of PDRs is the applicable current index group characteristics of the DIAMONDS Trust 20 based, the Exchange believes it is value; or whether other unusual and to applicable Exchange rules. necessary to maintain appropriate conditions or circumstances detrimental flexibility in connection with listing a to the maintenance of a fair and orderly Proposed Rule 1005 specific Trust. In connection with initial market are present.21 The Exchange proposes to adopt Rule listing, the Exchange will establish a Further, DIAMONDS trading will be 1005 (‘‘Dow Jones Indexes’’) stating that minimum number of PDRs required to halted if the circuit breaker parameters Dow Jones has licensed the Exchange to be outstanding at the time of of Rule 117 have been reached. The use certain Dow Jones indexes for commencement of Exchange trading. triggering of futures price limits for the purposes of the listing and trading of For DIAMONDS, a minimum of 150,000 DJIA, S&P 500, S&P 100 or Major Market particular series of Portfolio Depositary DIAMONDS (i.e., three Creation Units of Index (‘‘MMI’’) futures contracts will Receipts on the Exchange, and stating, 50,000 DIAMONDS each), will be not, in itself, require a halt in among other things, that Dow Jones and required to be outstanding when trading DIAMONDS trading or a delayed the Exchange make no warranty, express begins. or implied, as to results to be obtained The DIAMONDS Trust will be subject 19 With respect to the DIAMONDS Trust, the by any person or entity from the use of to the initial and continued listing Sponsor has the discretionary right to terminate the Trust if the value of Trust Securities (as defined in the Indexes or any data included criteria of Rule 1002(b). Rule 1002(b) the Trust registration statement) falls below therein. provides that, following twelve months $150,000,000 at any time after six months from the formation of a Trust and following, and prior to three years following, III. Discussion commencement of Exchange trading, the inception of the Trust. Following such time, the The Commission finds that the Sponsor has the discretionary right to terminate the Exchange will consider suspension of Trust if Trust Securities fall below $350,000,000 in proposed rule changes are consistent trading in, or removal from listing of a value, adjusted annually for inflation. with the requirements of the Act and the Trust when, in its opinion, further 20 Amex Rule 918C(b)(3). dealing in such securities appears 22 Amex Rule 918C(b)(4). 22 See Amendment No. 1, supra note 3.

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2441 rules and regulations thereunder as DIAMONDS, can trade at a single securities of the fund based on the net applicable to a national securities location in an auction market asset value of the securities held by the exchange, and, in particular, with the environment could alter the dynamics fund as designated by the board of requirements of Section 6(b)(5).23 The of program trading, because the directors.31 Accordingly, PDRs in Commission believes that providing for availability of such single transaction general, and DIAMONDS in particular, the exchange-trading of DIAMONDS portfolio trading could, in effect, restore will allow investors to (1) respond will offer investors an efficient way of the execution of program trades to more quickly to changes in the market; (2) participating in the securities markets. traditional block trading techniques.28 trade at a known price; (3) engage in Specifically the Commission believes An individual DIAMOND has a value hedging strategies not currently that the trading of DIAMONDS will approximately equal to one-one- available to retail investors; and (4) provide investors with increased hundredth of the value of the DJIA, reduce transactions costs for trading a flexibility in satisfying their investment making it available and useful to portfolio of securities. needs by allowing them to purchase and individual retail investors desiring to Although PDRs in general, and sell a low-cost security replicating the hold a security replicating the DIAMONDS in particular, are not performance of a broad portfolio of performance of a broad portfolio of leveraged instruments, and, therefore, stocks at negotiated prices throughout stocks. Accordingly, the Commission do not possess any of the attributes of the business day.24 The Commission believes that trading of DIAMONDS will stock index options, their prices will also believes that PDRs in general, and provide retail investors with a cost still be derived and based upon the DIAMONDS in particular, will benefit efficient means to make investment securities held in their respective investors by allowing them to trade decisions based on the direction of the Trusts. In essence, DIAMONDS are securities based on unit investment market and a whole and may provide equity securities that are priced off a trusts in secondary market market participants several advantages portfolio of stocks based on the DJIA. transactions.25 Accordingly, as over existing methods of effecting Accordingly, the level of risk involved discussed below, the proposed rule program trades involving stocks. in the purchase or sale of DIAMONDS change is consistent with the The Commission also believes that (or a PDR in general) is similar to the requirements of Section 6(b)(5) that PDRs, in general, and DIAMONDS, in risk involved in the purchase or sale of Exchange rules facilitate transactions in particular, will provide investors with traditional common stock, with the securities while continuing to further several advantages over standard open- exception that the pricing mechanism investor protection and the public end mutual fund shares that track a for DIAMONDS (and PDRs in general) is interest.26 broad-based portfolio of stocks such as based on a basket of stocks. As the Commission noted in previous the DJIA. In particular, investors will Nonetheless, the Commission has orders approving other PDR products have the ability to trade DIAMONDS several specific concerns regarding the (SPDRs and MidCap SPDRs) for listing continuously throughout the business trading of these securities. In particular, and trading on Amex,27 the Commission day in secondary market transactions at DIAMONDS raise disclosure, market believes that the trading of a security negotiated prices.29 In contrast, impact, and secondary market trading like PDRs in general, and DIAMONDS pursuant to Investment Company Act issues that must be addressed in particular, which replicate the Rule 22c–1,30 holders and prospective adequately. As discussed in more detail performance of a broad portfolio of holders of open-end mutual fund shares below, the Commission believes Amex stocks, could benefit the securities are limited to purchasing or redeeming adequately addresses these concerns. markets by, among other things, helping The Commission believes that the to ameliorate the volatility occasionally 28 Program trading is defined as index arbitrage or proposed rule filing contains several experienced in these markets. The any trading strategy involving the related purchase provisions that will ensure that or sale of a ‘‘basket’’ or group of fifteen or more investors are adequately apprised of the Commission believes that the creation of stocks having a total market value of $1 million or one or more products where actual terms, characteristics, and risks of more. trading DIAMONDS. As noted above, portfolios of stocks or instruments 29 Because of potential arbitrage opportunities, representing a portfolio of stocks, such the Commission believes that DIAMONDS will not the proposal contains four aspects trade at a material discount or premium in relation addressing disclosure concerns. First, to their net asset value. The mere potential for pursuant to Amex Rule 1000(a), 23 15 U.S.C. 78f(b)(5). arbitrage should keep the market price of a Commentary .01, Amex members must 24 Pursuant to Section 6(b)(5) of the Act, the DIAMOND comparable to its net asset value, and Commission must predicate approval of any new therefore, arbitrage activity likely will be minimal. provide their customers trading securities product upon a finding that the In addition, the Commission believes the Trust will DIAMONDS with a written explanation introduction of such product is in the public tract the underlying index more closely than an of any special characteristics and risks interest. Such a finding would be difficult with open-end index fund because the Trust will accept attendant to trading such PDR securities respect to a product that served no hedging or other only in-kind deposits, and, therefore, will not incur economic function, because any benefits that might brokerage expenses in assembling its portfolio. In (such as DIAMONDS), a in form be derived by market participants likely would be addition, the Trust will generally redeem only in prepared by Amex. As discussed above, outweighed by the potential for manipulation, kind, thereby enabling the Trust to invest virtually members can obtain DIAMONDS diminished public confidence in the integrity of the all of its assets in securities comprising the markets, and other valid regulatory concerns. product descriptions for distribution to underlying index. customers from Amex. Second, 25 The Commission notes, however, that unlike 30 Investment Company Act Rule 22c–1 generally open-end funds where investors have the right to requires that a registered investment company members and member organizations redeem their fund shares on a daily basis, investors issuing a redeemable security, its principal must include this written product could only redeem PDRs in creation unit share underwriter, and dealers in that security, may sell, description with any sales material sizes. Nevertheless, PDRs would have the added redeem, or repurchase the security only at a price relating to the series of DIAMONDS that benefit of liquidity from the secondary market and based on the net asset value next computed after PDR holders, unlike holders of most other open-end receipt of an investor’s request to purchase, redeem, is provided to customers or the public. funds, would be able to dispose of their shares in or resell. The net asset value of a mutual fund Third, any other written materials a secondary market transaction. generally is computed once daily Monday through provided by a member or member 26 In approving this rule, the Commission notes Friday as designated by the investment company’s organization to customers or the public that it has considered the proposed rule’s impact on board of directors. The Commission granted efficiency, competition, and capital formation. 15 DIAMONDS an exemption from this provision in referencing DIAMONDS as an U.S.C. 78c(f). order to allow them to trade at negotiated prices in 27 See supra notes 4 and 7. the secondary market. See supra note 16. 31 Id.

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Specifically, DIAMONDS, that a circular and prospectus are would permit Amex, when determining like other listed PDRs, are equity available from a broker upon request. whether to halt DIAMONDS trading, to securities that will be subject to the full Fourth, a member or member consider whether trading has been panoply of Amex rules governing the organization carrying an omnibus halted or suspended in the primary trading of equity securities on Amex, account for a non-member broker-dealer market(s) for any combination of including, among others, rules is required to inform such non-member underlying stocks accounting for 20% or governing the priority, parity and that execution of an order to purchase more of the applicable current index precedence of orders and the a series of DIAMONDS for such group value or whether other unusual responsibilities of specialists. In omnibus account will be deemed to conditions or circumstances detrimental addition, Amex has developed specific constitute agreement by the non- to the maintenance of a fair and orderly listing and delisting criteria for PDRs member to make the written product market are present.35 that are applicable to DIAMONDS that description available to its customers on The Commission believes that the will help to ensure that the markets for the same terms as member firms. trading of PDRs is general, and DIAMONDS will be deep and liquid. As Accordingly, the Commission believes DIAMONDS in particular, on Amex noted above, Amex’s proposal provides that investors in PDR securities, in should not adversely impact U.S. for trading halt procedures governing general, and DIAMONDS, in particular, securities markets. As to the trading of DIAMONDS. Finally, the Commission will be provided with adequate DIAMONDS, the Commission notes that notes that Amex’s equity rules disclosure of the unique characteristics the corpus of the DIAMONDS Trust is governing account opening and of the PDR instruments and other a portfolio of stocks replicating the suitability will apply to the trading of relevant information pertaining to the DJIA, a broad-based price-weighted DIAMONDS. instruments. index consisting of 30 actively-traded The Commission finds good cause to Finally, under Amex’s proposal there and liquid stocks. In fact, as described approve Amendment No. 1 to the will be no special account opening or above, the Commission believes proposed rule change prior to the customer suitability rules applicable to DIAMONDS may provide substantial thirtieth day after the date of the trading of DIAMONDS.32 benefits to the marketplace and publication of notice of filing thereof in Nevertheless, pursuant to Amex Rule investors, including, among others, the Federal Register. Specifically, 1000(a), Amex equity rules governing enhancing the stability of the markets Amendment No. 1 strengthens the account opening and suitability will for individual stocks.36 Accordingly, the proposed rule change by clarifying the apply. Specifically, these provisions Commission believes that DIAMONDS nature of composition of the Trust, the provide that members shall use due do not contain features that will make reasoning behind the trust term, the diligence to learn the essential facts them likely to impact adversely the U.S. trading halt procedures, and the relative to every customer, order or securities markets. applicable equity trading rules. In account opened, and, prior to or Finally, the Commission notes that addition, the proposed rule change was promptly after the completion of a Amex has submitted surveillance noticed for the full statutory period and transaction for such account, procedures for the trading of no comment letters were received. specifically approve the opening of the DIAMONDS and believes that those Finally, amendment No. 1 does not raise account.33 procedures, which incorporate and rely any new regulatory issues. Accordingly, The Commission believes Amex has upon existing Amex surveillance the Commission believes that there is adequately addressed the potential procedures governing equities, are good cause, consistent with Section market impact concerns raised by the adequate under the Act. 6(b)(5) of the Act, to approve proposal. First, Amex’s proposal The Commission finds that Amex’s Amendment No. 1 to the proposal on an permits listing and trading of specific proposal contains adequate rules and accelerated basis. PDRs only after review by the Interested persons are invited to Commission. Second, Amex has 35 See Amex Rule 918C(b). submit written data, views, and 36 Even though PDR transactions may serve as arguments concerning Amendment No. developed policies regarding trading substitutes for transactions in the cash market, and halts in PDRs. Specifically, the possibly make the order flow in individual stocks 1 to the rule proposal. Persons making Exchange would halt PDR trading in smaller than would otherwise be the case, the written submissions should file six DIAMONDS if the circuit breaker Commission acknowledges that during turbulent copies thereof with the Secretary, market conditions the ability of large institutions to Securities and Exchange Commission, parameters under Amex Rule 117 were redeem or create PDRs could conceivably have an reached.34 In addition, in deciding impact on price levels in the cash market. In 450 Fifth Street, N.W., Washington, D.C. whether to halt trading or conduct a particular, if a PDR is redeemed, the resulting long 20549. Copies of the submission, all delayed opening in PDRs, in general, stock position could be sold into the market, subsequent amendments, all written thereby depressing stock prices further. The statements with respect to the proposed and DIAMONDS, in particular, Amex Commission notes, however, that the redemption or represents that it will be guided by, but creation of PDRs likely will not exacerbate a price rule change that are filed with the movement because PDRs will be subject to the Commission, and all written equity margin requirements of 50% and PDRs are 32 This reflects the fact that PDRs are equity communications relating to the non-leveraged instruments. In addition, as noted proposed rule change between the products and not an options product, and, above, during turbulent market conditions, the therefore, do not necessitate the imposition of Commission believes PDRs, including SPDRs, Commission and any person, other than options-like rules. MidCap SPDRs and DIAMONDS, in particular, will those that may be withheld from the 33 See Amex Rule 411. serve as a vehicle to accommodate and ‘‘bundle’’ public in accordance with the 34 In addition, for PDRs tied to an index, the order flow that otherwise would flow to the cash provisions of 5 U.S.C. 552, will be triggering of futures price limits for the S&P 500 market, thereby allowing such order flow to be Index, S&P 100 Index, or MMI futures contracts will handled more efficiently and effectively. available for inspection and copying at not, in itself, result in a halt in PDR trading or a Accordingly, although DIAMONDS, like any other the Commission’s Public Reference delayed opening. However, the Exchange could PDR, could, in certain circumstances, have an Room. Copies of such filing also will be consider such an event, along with other factors, impact on the cash market, on balance we believe available for inspection and copying at such as a halt in trading in OEX, SPX, or MMI the product will be beneficial to the marketplace options, in deciding whether to halt trading in and can actually aid in maintaining orderly the principal office of the Exchange. All PDRs. markets. submissions should refer to File No.

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SR–Amex–97–29 and should be the proper performance of the agency Public comments are being solicited submitted by February 5, 1998. functions. to permit the agency to— • Evaluate the accuracy of the • Evaluate whether the proposed IV. Conclusion agency’s estimate of the burden of the information collection is necessary for It is Therefore Ordered, pursuant to proposed collection. the proper performance of the agency Section 19(b)(2) of the Act,37 that the • Enhance the quality, utility, and functions. proposed rule change (SR–Amex–97– clarity of the information to be • Evaluate the accuracy of the 29), as amended, is approve. collected. agency’s estimate of the burden of the For the Commission, by the Division of • Minimize the reporting burden on proposed collection. Market Regulation, pursuant to delegated those who are to respond, including • Enhance the quality, utility, and 38 authority. through the use of automated collection clarity of the information to be Jonathan G. Katz, techniques or other forms of technology. collected. Secretary. FOR FURTHER INFORMATION CONTACT: • Minimize the reporting burden on [FR Doc. 98–1041 Filed 1–14–98; 8:45 am] Comments regarding the collection those who are to respond, including BILLING CODE 8010±01±M listed in this notice or requests for through the use of automated collection copies of the proposed collection and techniques or other forms of technology. supporting documents should be FOR ADDITIONAL INFORMATION: Comments DEPARTMENT OF STATE directed to Charles S. Cunningham, regarding the collection listed in this Directives Management Branch, U.S. notice or requests for copies of the The Bureau of Consular Affairs Department of State, Washington, DC proposed collection and supporting [Public Notice 2700] 20520, (202) 647–0596. documents should be directed to Dated: December 23, 1997. Charles S. Cunningham, Directives Agency Information Collection Glen H. Johnson, Management Branch, U.S. Department Activities; Proposed Collection; Acting, Chief Information Officer. of State, Washington, DC 20520, (202) Comment Request 647–0596. [FR Doc. 98–1003 Filed 1–14–98; 8:45 am] AGENCY: Department of State BILLING CODE 4710±06±M Dated: December 23, 1997. ACTION: 60-Day Notice of Proposed Glen H. Johnson, Information Collection; DSP–64, Acting Chief Information Officer. Statement Regarding Lost and Stolen DEPARTMENT OF STATE [FR Doc. 98–1004 Filed 1–14–98; 8:45 am] Passport. [Public Notice 2701] BILLING CODE 4710±06±M

SUMMARY: The Department of State is The Bureau of Consular Affairs; 60-Day seeking Office of Management and Notice of Proposed Information DEPARTMENT OF STATE Budget (OMB) approval for the Collection; DSP±10A, Birth Affidavit information collection described below. Bureau of Consular Affairs The purpose of this notice is to allow 60 [Public Notice 2702] days for public comment in the Federal SUMMARY: The Department of State is Register preceding submission to OMB. seeking Office of Management and Agency Information Collection This process is conducted in accordance Budget (OMB) approval for the Activities; Proposed Collection; with the Paperwork Reduction Act of information collection described below. Comment Request 1995. The purpose of this notice is to allow 60 The following summarizes the days for public comment in the Federal AGENCY: Department of State. information collection proposal Register preceding submission to OMB. ACTION: 60-Day Notice of Proposed submitted to OMB: This process is conducted in accordance Information Collection; DS–1423, Type of Request: Reinstatement, with the Paperwork Reduction Act of Request By United States National For without change, of a previously 1995. and Report of Exception to Section 53.1, approved collection for which approval The following summarizes the Title 22 of the Code of Federal has expired. information collection proposal Regulations. Originating Office: The Bureau of submitted to OMB: Consular Affairs. Type of Request: Reinstatement, SUMMARY: The Department of State is Title of Information Collection: without change, of a previously seeking Office of Management and Statement Regarding Lost and Stolen approved collection for which approval Budget (OMB) approval for the Passport. has expired. information collection described below. Frequency: On occasion. Originating Office: The Bureau of The purpose of this notice is to allow 60 Form Number: DSP–64. Consular Affairs. days for public comment in the Federal Respondents: U.S. Citizens. Title of Information Collection: Birth Register preceding submission to OMB. Estimated Number of Respondents: Affidavit. This process is conducted in accordance 30,000. Frequency: On occasion. with the Paperwork Reduction Act of Average Hours Per Response: 15 Form Number: DSP–10A. 1995. minutes. Respondents: Applicant’s eligibility to The following summarizes the Total Estimated Burden: 7,500. be documented as a citizen of the information collection proposal Public comments are being solicited United States. submitted to OMB: to permit the agency to— Estimated Number of Respondents: Type of Request: Reinstatement, • Evaluate whether the proposed 50,000. without change, of a previously information collection is necessary for Average Hours Per Response: 15 approved collection for which approval minutes. has expired. 37 15 U.S.C. 78s(b)(2). Total Estimated Burden: 12,500 Originating Office: The Bureau of 38 17 CFR 200.30–3(a)(12). hours. Consular Affairs.

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Title of Information Collection: approved collection for which approval for public comment in the Federal Request by United States National For has expired. Register preceding submission to OMB. and Report of Exception to Section 53.1, Originating Office: The Bureau of This process is conducted in accordance Title 22 of the Code of Federal Consular Affairs. with the Paperwork Reduction Act of Regulations. Title of Information Collection: 1995. Frequency: On occasion. Affidavit Regarding Change of Name. The following summarizes the Form Number: DS–1423. Frequency: On Occasion. information collection proposal Respondents: Citizens of the United Form Number: DSP–60. submitted to OMB: States. Respondents: U.S. Citizens and Type of Request: Reinstatement, Estimated Number of Respondents: Nationals. without change, of a previously 2,500. Estimated Number of Respondents: approved collection for which approval Average Hours Per Response: 15 75,000. has expired. minutes. Average Hours Per Response: 15 Total Estimated Burden: 625 hours. Originating Office: The Bureau of minutes. Public comments are being solicited Consular Affairs. Total Estimated Burden: 18,750 to permit the agency to— Title of Information Collection: • Evaluate whether the proposed hours. Passport Amendment/Validation information collection is necessary for Public comments are being solicited Application. to permit the agency to— Frequency: On occasion. the proper performance of the agency • functions. Evaluate whether the proposed Form Number: DSP–19. • Evaluate the accuracy of the information collection is necessary for Respondents: U.S. Citizens. agency’s estimate of the burden of the the proper performance of the agency Estimated Number of Respondents: functions. 150,000. proposed collection. • Enhance the quality, utility, and Evaluate the accuracy of the Average Hours Per Response: 15 clarity of the information to be agency’s estimate of the burden of the minutes. collected. proposed collection. Total Estimated Burden: 37,500. • Minimize the reporting burden on • Enhance the quality, utility, and Public comments are being solicited those who are to respond, including clarity of the information to be to permit the agency to— through the use of automated collection collected. • Evaluate whether the proposed techniques or other forms of technology. • Minimize the reporting burden on information collection is necessary for FOR FURTHER INFORMATION CONTACT: those who are to respond, including the proper performance of the agency Comments regarding the collection through the use of automated collection functions. listed in this notice or requests for techniques or other forms of technology. • Evaluate the accuracy of the copies of the proposed collection and FOR ADDITIONAL INFORMATION: Comments agency’s estimate of the burden of the supporting documents should be regarding the collection listed in this proposed collection. directed to Charles S. Cunningham, notice or requests for copies of the • Enhance the quality, utility, and Directives Management Branch, U.S. proposed collection and supporting clarity of the information to be Department of State, Washington, DC documents should be directed to collected. 20520, (202) 647–0596. Charles S. Cunningham, Directives • Minimize the reporting burden on those who are to respond, including Dated: December 23, 1997. Management Branch, U.S. Department of State, Washington, DC 20520, (202) through the use of automated collection Glen H. Johnson, 647–0596. techniques or other forms of technology. Acting Chief Information Officer. FOR ADDITIONAL INFORMATION CONTACT: [FR Doc. 98–1005 Filed 1–14–98; 8:45 am] Dated: December 23, 1997. Comments regarding the collection BILLING CODE 4710±06±M Glen H. Johnson, Acting Chief Information Officer. listed in this notice or requests for copies of the proposed collection and [FR Doc. 98–1006 Filed 1–14–98; 8:45 am] DEPARTMENT OF STATE supporting documents should be BILLING CODE 4710±06±M directed to Charles S. Cunningham, [Public Notice 2703] Directives Management Branch, U.S. DEPARTMENT OF STATE Department of State, Washington, DC The Bureau of Consular Affairs; 60-Day 20520, (202) 647–0596. Notice of Proposed Information Collection; DSP±60, Affidavit The Bureau of Consular Affairs Dated: December 23, 1997. Regarding Change of Name [Public Notice 2704] Glen H. Johnson, Acting Chief Information Officer. SUMMARY: The Department of State is Agency Information Collection [FR Doc. 98–1007 Filed 1–14–98; 8:45 am] seeking Office of Management and Activities; Proposed Collection BILLING CODE 4710±06±M Budget (OMB) approval for the Comment Request information collection described below. AGENCY: The purpose of this notice is to allow 60 Department of State. DEPARTMENT OF STATE days for public comment in the Federal ACTION: 60-Day Notice of Proposed Register preceding submission to OMB. Information Collection; DSP–19, The Bureau of Consular Affairs This process is conducted in accordance Passport Amendment/Validation with the Paperwork Reduction Act of Application. [Public Notice 2705] 1995. The following summarizes the SUMMARY: The Department of State is Agency Information Collection information collection proposal seeking Office of Management and Activities; Proposed Collection; submitted to OMB: Budget (OMB) approval for the Comment Request Type of Request: Reinstatement, information collection described below. without change, of a previously The purpose of this is to allow 60 days AGENCY: Department of State.

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ACTION: 60-Day Notice of Proposed DEPARTMENT OF STATE Dated: December 23, 1997. Information Collection; DSP–10, Glen H. Johnson, Statement of Identity. Bureau of Consular Affairs Acting Chief Information Officer. [Public Notice 2706] [FR Doc. 98–1009 Filed 1–14–98; 8:45 am] SUMMARY: The Department of State is BILLING CODE 4710±06±M seeking Office of Management and Agency Information Collection Budget (OMB) approval for the Activities; Proposed Collection; information collection described below. Comment Request DEPARTMENT OF STATE The purpose of this notice is to allow 60 days for public comment in the Federal AGENCY: Department of State. Bureau of Consular Affairs ACTION: 60-Day Notice of Proposed Register preceding submission to OMB. [Public Notice 2702] This process is conducted in accordance Information Collection; Application for with the Paperwork Reduction Act of Passport/Registration (DSP–11). Agency Information Collection 1995. Activities; Proposed Collection; SUMMARY: The Department of State is The following summarizes the seeking Office of Management and Comment Request information collection proposal Budget (OMB) approval for the AGENCY: Department of State. submitted to OMB: information collection described below. ACTION: 60-Day Notice of Proposed Type of Request: Reinstatement, The purpose of this notice is to allow 60 Information Collection; Application for without change, of a previously days for public comment in the Federal Passport by Mail (DSP–82). approved collection for which approval Register preceding submission to OMB. has expired. This process is conducted in accordance SUMMARY: The Department of State is Originating Office: The Bureau of with the Paperwork Reduction Act of seeking Office of Management and Consular Affairs. 1995. Budget (OMB) approval for the The following summarizes the information collection described below. Title of Information Collection: information collection proposal The purpose of this notice is to allow 60 Statement of Identity. submitted to OMB: days for public comment in the Federal Frequency: On occasion. Type of Request: Extension of a Register preceding submission to OMB. Form Number: DSP–10. currently approved collection. This process is conducted in accordance Organizating Office: Bureau of Respondents: U.S. citizens. with the Paperwork Reduction Act of Consular Affairs. 1995. Estimated Number of Respondents: Title of Information Collection: The following summarizes the 2,600. Application for Passport/Registration. information collection proposal Average Hours Per Response: 15 Frequency: On occasion. submitted to OMB: minutes. Form Number: DSP–11. Type of Request: Extension of a Total Estimated Burden: 650 hours. Respondents: Citizens and Nationals currently approved collection. of the United States who are applying Orginating Office: Bureau of Consular Public comments are being solicited for registration as a U.S. citizen abroad. Affairs. to permit the agency to— Estimated Number of Respondents: Title of Information Collection: • Evaluate whether the proposed 4,400,000. Application for Passport by Mail. information collection is necessary for Average Hours Per Response: 20 Frequency: On occasion. the proper performance of the agency minutes. Form Number: (DSP–82). functions. Total Estimated Burden: 1,466,666.6 Respondents: Individuals who are • Evaluate the accuracy of the hours. eligible to apply for a United States agency’s estimate of the burden of the Public comments are being solicited passport by mail. proposed collection. to permit the agency to— Estimated Number of Respondents: • Evaluate whether the proposed 1,700,000. • Enhance the quality, utility, and information collection is necessary for Average Hours Per Response: 15 clarity of the information to be the proper performance of the agency minutes. collected. functions. Total Estimated Burden: 425,000. • Minimize the reporting burden on • Evaluate the accuracy of the Public comments are being solicited those who are to respond, including agency’s estimate of the burden of the to permit the agency to— through the use of automated collection proposed collection. • Evaluate whether the proposed techniques or other forms of technology. • Enhance the quality, utility, and information collection is necessary for clarity of the information to be FOR ADDITIONAL INFORMATION CONTACT: the proper performance of the agency Comments regarding the collection collected. functions. • Minimize the reporting burden on • listed in this notice or requests for Evaluate the accuracy of the those who are to respond, including copies of the proposed collection and agency’s estimate of the burden of the through the use of automated collection supporting documents should be proposed collection. techniques or other forms of technology. • directed to Charles S. Cunningham, Enhance the quality, utility, and Directives Management Branch, U.S. FOR ADDITIONAL INFORMATION CONTACT: clarity of the information to be Comments regarding the collection collected. Department of State, Washington, DC • 20520, (202) 647–0596. listed in this notice or requests for Minimize the reporting burden on copies of the proposed collection and those who are to respond, including Dated: December 23, 1997. supporting documents should be through the use of automated collection Glen H. Johnson, directed to Charles S. Cunningham, techniques or other forms of technology. Acting Chief Information Officer. Directives Management Branch, U.S. FOR FURTHER INFORMATION CONTACT: [FR Doc. 98–1008 Filed 1–14–98; 8:45 am] Department of State, Washington, DC Comments regarding the collection BILLING CODE 4710±06±M 20520, (202) 647–0596. listed in this notice or requests for

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2446 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices copies of the proposed collection and at no time passes through the area half of all potatoes harvested in the supporting documents should be where the horizontal member of the rear States of Idaho and Washington are directed to Charles S. Cunningham, underride guard would be located, and hauled in Trinity trailers. Directives Management Branch, U.S. it certainly does not do so while the Interested persons are invited to Department of State, Washington, DC vehicle is in transit.’’ submit comments on the petition 20520, (202) 647–0596. The applicant received NHTSA’s described above. Comments should refer interpretation approximately seven to the docket and notice number, and be Dated: December 23, 1997. months before the due date for submitted to: Docket Management, Glen H. Johnson, compliance. Standard No. 224 requires, National Highway Traffic Safety Chief Information Officer, Acting. effective January 26, 1998, that all Administration, room PL–410, 400 [FR Doc. 98–1010 Filed 1–14–98; 8:45 am] trailers with a GVWR of 4536 Kg or Seventh Street, SW, Washington, DC BILLING CODE 4710±06±M more be fitted with a rear impact guard 20590. It is requested but not required that conforms to Standard No. 223 Rear that 2 copies be submitted. impact guards. Because of the costs All comments received before the DEPARTMENT OF TRANSPORTATION involved in re-engineering its trailers to close of business on the comment accommodate a rear impact guard, closing date below will be considered, National Highway Traffic Safety Trinity Trailer has asked for an and will be available for examination in Administration exemption of three years. The company the docket at the above address both [Docket No. NHTSA±98±3306] presented cost estimates indicating that before and after that date, from 10 a.m. the costs to conform at the end of a three to 5 p.m. To the extent possible, Trinity Trailer Mfg., Inc.; Application for year period would be $637,720 with a comments filed after the closing date Temporary Exemption From Federal corresponding increase in the price of will also be considered. Notice of final Motor Vehicle Safety Standard No. 224 its trailers of $709, as compared with a action on the petition will be published cost to conform of $882,920 and a trailer in the Federal Register pursuant to the Trinity Trailer Mfg., Inc. (formerly price increase of $2,943 at the end of a authority indicated below. Farm Bed Mfg., Inc.), of Boise, Idaho, one-year exemption. The applicant Comment closing date: February 4, has applied for a three-year temporary represents that an increase of this 1998. exemption from Motor Vehicle Safety magnitude would effectively price its Standard No. 224 Rear Impact Authority: 49 U.S.C. 30113; delegations of trailers out of the market. In the absence authority at 49 CFR 1.50 and 501.4. Protection. The basis of the application of an exemption, Trinity Trailer will be is that compliance would cause Issued on January 9, 1998. forced to close because the Eagle Bridge L. Robert Shelton, substantial economic hardship to a is its sole product. The company’s net manufacturer that has tried in good faith Associate Administrator for Safety income for 1996 was only $137,798 Performance Standards. to comply with the standard. which represented a decline from 1995’s [FR Doc. 98–999 Filed 1–14–98; 8:45 am] This notice of receipt of the net income of $611,145. The company application is published in accordance manufactured 263 trailers in the 12- BILLING CODE 4910±59±P with agency regulations on the subject month period preceding the filing of its and does not represent any judgment by application. the agency about the merits of the The applicant believes that it has DEPARTMENT OF THE TREASURY application. made a good faith effort to meet Submission for OMB Review; Trinity Trailer manufactures and sells Standard No. 224, saying that, prior to Comment Request the ‘‘Eagle Bridge,’’ self-unloading bulk requesting its interpretation from trailers that have small conveyor belts at NHTSA, ‘‘hundreds of hours were spent January 8, 1998. the lower rear of the trailer to unload to find an automatically retracting rear The Department of the Treasury has potatoes and other agricultural impact guard,’’ only to find that none submitted the following public products. The rear shaft mount for the are available in the United States. Its information collection requirement(s) to conveyor belt protrudes 24 inches from engineers have not been successful ‘‘in OMB for review and clearance under the the rear of the trailer in order to drop making a moveable guard or a moveable Paperwork Reduction Act of 1995, the cargo onto another conveyor belt rear shaft and tail fins.’’ The application Public Law 104–13. Copies of the that is located at the unloading site. contains the alternate means of submission(s) may be obtained by Because Standard No. 224 excludes a compliance that have been examined, calling the Treasury Bureau Clearance ‘‘special purpose vehicle,’’ the applicant and sets forth the reasons for the Officer listed. Comments regarding this had asked NHTSA on June 28, 1996, for rejection of each. It believes that it can information collection should be an interpretation that the Eagle Bridge achieve full compliance by the end of a addressed to the OMB reviewer listed qualified for exclusion because it was three-year exemption period. and to the Treasury Department manufactured with ‘‘work-performing The applicant believes that an Clearance Officer, Department of the equipment.’’ On August 22, 1997, exemption would be in the public Treasury, Room 2110, 1425 New York NHTSA replied that the Eagle Bridge interest and consistent with traffic Avenue, NW., Washington, DC 20220. was not excluded. Paragraph S4 of safety objectives because there is no Standard No. 224 defines a special history of injuries from motor vehicle Bureau of the Public Debt (PD) purpose vehicle as ‘‘a trailer or semi- accidents involving the rear conveyor OMB Number: 1535–0023. trailer having work-performing belt system on its trailers. Further, ‘‘the Form Number: PD F 4000. equipment * * * that, while the vehicle possibility of injury to occupants of a Type of Review: Extension. is in transit, resides in or moves through vehicle impacting the rear of a Trinity Title: Request by Owner for Reissue of the area that could be occupied by the trailer is minimal because of Trinity’s United States Savings Bonds/Notes to horizontal member of the rear underride wheels-back design.’’ These trailers are Add Beneficiary or Co-owner, Eliminate guard * * *.’’ (Emphasis added). As used extensively by the agricultural Beneficiary or Decedent, Show Change NHTSA wrote the applicant, ‘‘[t]he industry in the Pacific Northwest, and of Name and/or Correct Error in small conveyor belt of the Eagle Bridge the applicant estimates that ‘‘well over Registration.

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Description: The form is used by owners of securities of State and Local Estimated Burden Hours Per owners to identify securities for which Government Series. Respondent: 1 hour. reissue is requested and to indicate the Respondents: State, Local or Tribal Frequency of Response: On occasion. new registration required. Government. Estimated Total Reporting Burden: Respondents: Individuals or Estimated Number of Respondents: 4,000 hours. households. 5,000. OMB Number: 1512–0508. Estimated Number of Respondents: Estimated Burden Hours Per Form Number: ATF F 5300.28. 600,000. Respondent: 55 minutes. Recordkeeping Requirement ID Estimated Burden Hours Per Frequency of Response: On occasion. Number: ATF REC 5300/28. Respondent: 30 minutes. Estimated Total Reporting Burden Type of Review: Extension. Frequency of Response: On occasion. Hours: 4,585 hours. Title: Application for Registration for Estimated Total Reporting Burden Clearance Officer: Vicki S. Thorpe Tax-Free Transactions Under 26 U.S.C. Hours: 300,000 hours. (304) 480–6553, Bureau of the Public 4221 (Firearms and Ammunition). OMB Number: 1535–0042. Debt, 200 Third Street, Parkersburg, Description: Businesses, State and Form Number: PD F 2216. West VA 26106–1328. local governments, and small businesses Type of Review: Extension. OMB Reviewer: Alexander T. Hunt apply for registration to sell or purchase Title: Application by Preferred (202) 395–7860, Office of Management firearms or ammunition tax free on this Creditor for Disposition Without and Budget, Room 10226, New form. ATF uses the form to determine Administration Where Deceased Executive Office Building, Washington, an applicant’s qualification. Owner’s Estate Includes United States DC 20503. Respondents: Businesses or other for- Registered Securities and/or Related Lois K. Holland, profit, State, Local or Tribal Checks in an Amount not Exceeding Departmental Reports Management Officer. Government. $500. [FR Doc. 98–1035 Filed 1–14–98; 8:45 am] Estimated Number of Respondents: Description: Used by a preferred BILLING CODE: 4810±40±P 125. creditor of a decedent’s estates to Estimated Burden Hours Per request payment of savings bonds/notes Respondent: 3 hours. and/or related checks not exceeding DEPARTMENT OF THE TREASURY Frequency of Response: Other (one- $500, when estate is not being time). administered. Submission for OMB Review; Estimated Total Reporting Burden: Respondents: Individuals or Comment Request 375 hours. households, Business or other for-profit. January 9, 1998. Clearance Officer: Robert N. Hogarth Estimated Number of Respondents: The Department of Treasury has (202) 927–8930, Bureau of Alcohol, 5,000. submitted the following public Tobacco and Firearms, Room 3200, 650 Estimated Burden Hours Per information collection requirement(s) to Massachusetts Avenue, N.W., Respondent: 10 minutes. OMB for review and clearance under the Washington, DC 20226. Frequency of Response: On occasion. Paperwork Reduction Act of 1995, Pub. OMB Reviewer: Alexander T. Hunt Estimated Total Reporting Burden L. 104–13. Copies of the submission(s) (202) 395–7860, Office of Management Hours: 835 hours. may be obtained by calling the Treasury and Budget, Room 10202, New OMB Number: 1535–0091. Bureau Clearance Officer listed. Executive Office Building, Washington, Form Number: None. Comments regarding this information DC 20503. Type of Review: Extension. collection should be addressed to the Lois K. Holland, Title: Regulations Governing United OMB reviewer listed and to the Departmental Reports Management Officer. States Treasury Certificates of Treasury Department Clearance Officer, [FR Doc. 98–1036 Filed 1–14–98; 8:45 am] Indebtedness—State and Local Department of the Treasury, Room 2110, BILLING CODE 4810±31±P Government Series. 1425 New York Avenue, NW., Description: These are regulations Washington, DC 20220. authorizing the issuing of United States Treasury Bonds, Notes and Certificates Bureau of Alcohol, Tobacco and UNITED STATES INFORMATION of Indebtedness of the State and Local Firearms (BATF) AGENCY Government Series. OMB Number: 1512–0090. NIS College and University Respondents: State, Local or Tribal Form Number: ATF F 1643 (5100.18). Partnerships Program; NoticeÐ Government. Type of Review: Extension. Revised Request for Proposals (RFP) Estimated Number of Respondents: Title: Application for Amended Basic 1,000. Permit Under the Federal Alcohol This notice amends the RFP Estimated Burden Hours Per Administration Act. published on November 20, 1997, Respondent: 10 minutes. Description: ATF F 1643 is completed providing for assistance awards by the Frequency of Response: On occasion. by persons who hold a basic permit to Office of Academic Programs of the Estimated Total Reporting Burden operate as an importer or wholesaler, United States Information Agency to Hours: 167 hours. producer, rectifier, bottler, or support partnerships with (a) foreign OMB Number: 1535–0092. warehouseman of distilled spirits, wine institution(s) of higher education from Form Number: PD Fs 4144, 4144–1, or malt beverages with ATF, but who the New Independent States in specified 4144–2, 4144–3 and 4144–4. intend to change their basic permit due fields. The RFP is amended to remove Type of Review: Extension. to change in name, trade name, location, the restriction against awards for Title: Subscription for Purchase and or operations. partnerships with state universities in Issue of U.S. Treasury Securities—State Respondents: Business or other for- Azerbaijan. The RFP’s closing date and Local Government Series. profit. remains February 23, 1998. Potential Description: The information is Estimated Number of Respondents: applicants should refer to the RFP necessary to establish the accounts for 4,000. published on November 20, 1997 for full

VerDate 02-DEC-97 17:09 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 E:\FR\FM\P15JA3.PT1 15jan1 2448 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices details about applying for assistance To Download a Solicitation Package Register announcement before sending awards under this RFP. via Internet: The entire Solicitation inquiries or submitting proposals. Once Package may be downloaded from the RFP deadline has passed, Agency FOR FURTHER INFORMATION, CONTACT: USIA’s website at http://www.usia.gov/ staff may not discuss this competition in Office of Academic Programs; Advising, education/rfps. Please read all any way with applicants until the Teaching, and Specialized Programs information before downloading. Bureau proposal review process has Division; College and University been completed. Affiliations Program (CUAP), (E/ASU), To Receive a Solicitation Package via Fax on Demand: The entire Solicitation Room 349, U.S. Information Agency, Notification Package may be received via the 301 4th Street, S.W., Washington, DC Bureau’s ‘‘Grants Information Fax on Final awards cannot be made until 20547, phone: (202) 619–4126, fax: (202) Demand System,’’ which is accessed by funds have been appropriated by 401–1433. Send a message via Internet calling 202/401–7616. Please request a Congress, allocated and committed to: [email protected] to request a ‘‘Catalog’’ of available documents and through internal USIA procedures. Solicitation Package. The Solicitation order numbers when first entering the Dated: January 8, 1998. Package includes more detailed award system. Robert L. Earle, criteria, all application forms, and Please specify USIA Program Officer Deputy Associate Director for Educational guidelines for preparing proposals, Jonathan Cebra on all inquiries and and Cultural Affairs. including specific criteria for correspondences. Interested applicants [FR Doc. 98–1061 Filed 1–14–98; 8:45 am] preparation of the proposal budget. should read the complete Federal BILLING CODE 8230±01±M

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Corrections Federal Register Vol. 63, No. 10

Thursday, January 15, 1998

This section of the FEDERAL REGISTER DEPARTMENT OF ENERGY DEPARTMENT OF HEALTH AND contains editorial corrections of previously HUMAN SERVICES published Presidential, Rule, Proposed Rule, Federal Energy Regulatory and Notice documents. These corrections are Commission Public Health Service prepared by the Office of the Federal Register. Agency prepared corrections are Centers for Disease Control and issued as signed documents and appear in [Docket Nos. RP98±105±000 and RP89±183± Prevention; Statement of Organization, the appropriate document categories 076] Functions, and Delegations of elsewhere in the issue. Williams Natural Gas Company; Notice Authority of Proposed Changes in FERC Gas Correction Tariff In notice document 97–32256, Correction beginning on page 65088, in the issue of Wednesday, December 10, 1997, make In notice document 98–641, beginning the following corrections: on page 1846, in the issue of Monday, 1. On page 65088, in the second January 12, 1998, the docket numbers column, in the second paragraph, in the should appear as set forth above. second line, ‘‘Communicty’’ should read BILLING CODE 1505-01-D ‘‘Community’’. 2. On the same page, in the same column, in the third paragraph, in the 11th line, ‘‘officer’’should read ‘‘offices’’. BILLING CODE 1505-01-D

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DEPARTMENT OF COMMERCE DATES: This rule is effective January 15, Therefore, in order to meet Wassenaar 1998. Comments on this rule must be Arrangement requirements, exporters on Bureau of Export Administration received on or before February 17, 1998. occasion may be informed that the ADDRESSES: Written comments should export of a certain item to a specific 15 CFR Parts 732, 740, 742, 743, 744, be sent to Patricia Muldonian, end-user under a License Exception is 746, 762, and 774 Regulatory Policy Division, Bureau of not authorized or alternatively, may be [Docket No. 971006239±7239±01] Export Administration, Department of requested to provide prior written Commerce, P.O. Box 273, Washington, notification to BXA of an export of a RIN 0694±AB35 DC 20044. certain item to a specific end-user under FOR FURTHER INFORMATION CONTACT: a License Exception. Implementation of the Wassenaar James Lewis, Director, Office of Reports are required to be submitted Arrangement List of Dual-Use Items: to BXA semiannually for specified items Revisions to the Commerce Control Strategic Trade and Foreign Policy Controls, Bureau of Export controlled under the Wassenaar List and Reporting Under the Arrangement exported under License Wassenaar Arrangement Administration, Telephone: (202) 482– 0092. Exceptions LVS, GBS, CIV, CTP, TSR, and GOV. BXA must receive such AGENCY: Bureau of Export SUPPLEMENTARY INFORMATION: reports no later than August 1 for Administration, Commerce. Background exports during the reporting period ACTION: Interim rule with request for January 1 through June 30, and no later comments. In July 1996, the United States and than February 1 for exports during the thirty-two other countries gave final reporting period July 1 through SUMMARY: Representatives of thirty-three approval to the establishment of a new December 31. The Export Control countries gave final approval July 12– multilateral export control arrangement, Classification Number and paragraph 13, 1996 in Vienna, Austria to establish called the Wassenaar Arrangement on reference as identified on the Commerce the Wassenaar Arrangement on Export Export Controls for Conventional Arms Control List, number of units in each Controls for Conventional Arms and and Dual-Use Goods and Technologies shipment, and the country of ultimate Dual-Use Goods and Technologies. The (Wassenaar Arrangement). The destination must be included in each thirty-three countries agreed to control Wassenaar Arrangement contributes to report for each export during the all items in the List of Dual-Use Goods regional and international security and reporting period. Although the exporter and Technologies with the objective of stability by promoting transparency and must be identified on all reports to BXA, preventing unauthorized transfers. They greater responsibility in transfers of names of exporters will not be released further agreed on a target date of conventional arms and dual-use goods to participating states. Certain November 1, 1996, for implementation and technologies, thus preventing additional information requirements of the Wassenaar Lists. destabilizing accumulations of such apply to digital computers. The purpose of this interim rule is to items. Participating states have Exporters should note that the first make the changes to the Commerce committed to exchange information on report must be submitted to and Control List necessary to implement the exports of dual-use goods and received by BXA no later than August Wassenaar List. In addition, this interim technologies to non-participating states 1, 1998 for the partial reporting period rule imposes new reporting for the purposes of enhancing beginning January 15, 1998 and ending requirements on persons that export transparency and assisting in June 30, 1998. Thereafter, reports are certain items controlled under the developing common understandings of required semiannually according to the Wassenaar Arrangement to non-member the risks associated with the transfers of provisions of new § 743.1(f) of the EAR. countries in order to fulfill the these items. This rule also amends § 742.12 of the information exchange requirements of To fulfill U.S. commitments to the EAR (High Performance Computers) to the Wassenaar Arrangement. The Wassenaar Arrangement with regard to clarify the reporting and recordkeeping Department of Commerce, with other dual-use items, this rule amends the requirements for certain computer and concerned agencies, is reviewing the Export Administration Regulations software exports. Export Administration Regulations to (EAR) by imposing new reporting This rule also amends part 740 of the determine whether further changes will requirements for exports of certain items EAR by adding appropriate cross- be required to implement the controlled under the Wassenaar references to reporting requirements information sharing provisions of the Arrangement. Reports are not required under License Exceptions LVS, GBS, Wassenaar Arrangement and to make for reexports. These new requirements CIV, TSR, CTP, and GOV. The major the necessary adjustments to existing appear in newly added part 743 of the changes in the Commerce Control List country groups. EAR. Information from exporters will be (CCL) necessary to implement the This rule also revises part 740 of the consolidated by BXA for an aggregate Wassenaar Arrangement are EAR by removing License Exception data submission to the participating summarized below. availability for certain items controlled states. In addition, based on interagency for missile technology reasons. With respect to certain dual-use agreement, particularly consultations Although the Export Administration commodities, software, and technology, with the Department of State, this rule Act (EAA) expired on August 20, 1994, participating states have undertaken revises part 740 of the EAR by removing the President invoked the International commitments to notify each other License Exception availability for Emergency Economic Powers Act and preferably within 30 days, but no later missile technology (MT) controlled continued in effect, to the extent than 60 days, of an approval of a license items, except that items described in permitted by law, the provisions of the that has been denied by another ECCNs 6A008, 7A001, 7A002, 7A004, EAA and the EAR in Executive Order participating state for an essentially 7A101, 7A102, 7A103, 7A104, 7D001, 12924 of August 19, 1994, as extended identical transaction during the 7D002, 7D003, 7D101, 7D102, 7E003, or by the President’s notices of August 15, preceding three years. Certain of these 7E101, may be exported as part of a 1995, August 14, 1996 and August 15, items are eligible for License Exceptions manned aircraft, satellite, land vehicle, 1997. authorized by part 740 of the EAR. or marine vehicle or in quantities

VerDate 02-DEC-97 16:47 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\P15JA0.PT2 15jar2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2453 appropriate for replacement parts under forming/flow-forming machines. Lastly, —‘‘Integrated Services Digital Network’’ License Exceptions TMP, RPL, TSU, or controls on spindle assemblies and slide (ISDN) functions; AVS. This action is based on a U.S. assemblies have been moved from —Multi-level priority and pre-emption Government policy to restrict the 2B008 to 2B992 as specially designed for circuit switching; proliferation of missile capability and is components therefore. —Routing or switching of ‘‘datagram’’ consistent with the Missile Technology packets; Category 3—Electronics Control Regime (MTCR) multilateral —Routing for switching of fast select guidelines. A number of controls have been packets; Also, in an effort to comply with our removed for components under —Automatic hand-off of cellular radio international commitments of the Category 3, including microprocessors calls; and Wassenaar Arrangement, the U.S. has up to a composite theoretical —Digital cross connect equipment. also committed to exercise extreme performance (CTP) value of 260 Mtops, Additionally, the control parameters vigilance for certain items controlled for most storage devices (i.e. memory for the ‘‘data signaling rate’’ for national security reasons (NS), which circuits), and on custom integrated ‘‘communications channel controllers’’ are considered most critical to military circuits (3A001). In addition, the and the digital transfer rate for ‘‘network applications. This rule removes License frequency parameter for network access controllers’’ have been modified Exception eligibility for License analyzers and microwave test receivers to relax controls on packet switches, Exceptions LVS, CIV, TSR, and GOV for have been relaxed, and controls on circuit switches and routers. Controls on certain commodities, technologies, and emulators (3A002) have been removed all general purpose test equipment (e.g. software controlled for national security entirely. The most significant change is bit error rate testers and protocol reasons for which the U.S. has agreed to in the entries under Category 3B dealing analyzers) have been removed (5B001). license with extreme vigilance. with semiconductor manufacturing Controls on software for use of digital switching equipment (5D001) have been Category 1—Materials equipment. Specifically, these entries have been combined and divided into removed and controls on development Additional controls have been added two ECCNs. In addition, the limit for technology for spread spectrum and for body armor (1A005), certain control of integrated circuits testers frequency hopping techniques fluorocarbon electronic cooling fluids have been raised from 50 MHZ to 60 (5E001.b.) have been added. (1C006), certain ‘‘ceramic-ceramic’’ MHZ (3B002). materials with oxide or glass matrix Category 5—‘‘Information Security’’, (1C007), certain metals and compounds Category 4—Computers Part II (1C011), and certain material for nuclear Under category 4, the CTP value for Under Part II, ‘‘Information Security’’, heat sources. In addition, controls for computers has been raised from 260 certain items have been decontrolled ‘‘stress’’ limits for metal alloys (1C002), Mtops to 2,000 Mtops. The limit on through an expansion of ‘‘Notes’’ within have been modified. Additional graphic accelerators and graphics the entry of 5A002. These notes state clarification of controls are specific for coprocessors has been relaxed to a 3–D that certain access control equipment the transition temperature limits on vector rate of 3,000,000 (4A003). The (e.g. equipment to protect personal certain ‘‘fibrous or filamentary technology for ‘‘multi-data-stream identification numbers [PIN]), data materials’’ (1C010) processing’’ has been revised to the authentication equipment (e.g. equipment which calculates a Message Category 2—Material Processing control level defined in 4A003.b. (4E002). The technology for magnetic Authentication Code [MAC]) and A significant number of changes have hard disk drives (4E002) has been cryptographic equipment specially been implemented for machine tools. removed. designed and limited for use in Specifically, the machine tool entry has machines for banking or money been modified to separate the controls Category 5—Telecommunications, Part I transactions are not controlled. In on turning, milling and grinding Several sections of Part I, addition, all software for virus machines. In particular, such machines Telecommunication have been removed protection (5D002) has been removed. will no longer be controlled under the creating a significant number of changes Category 6—Sensors and Lasers Wassenaar Arrangement on the basis of to the controls on telecommunication ‘‘tilting spindles’’, ‘‘camming’’, or ‘‘run- equipment. The majority of changes are Under the acoustics section, controls out’’. Also, detailed test procedures, as identified in the following entries. for certain wide-swath bathymetric specified by the International Standards All controls on telecommunication survey systems and terrestrial Organization (ISO), will no longer be transmission equipment or systems, geophones have been removed. In reiterated in the list. This revision will having digital cross connect equipment addition, controls for towed acoustic allow the regulations to remain effective and modems (5A001.b.), have been hydrophone arrays and processing while keeping the procedures under removed. In addition, controls have equipment for hydrophone arrays have which the equipment is measured, been removed on certain been modified. Controls for bottom or current with industry practice. In communication channel controllers, bay cable systems (6A001) have been addition, controls have been removed certain network access controllers, added. Under optical sensors, controls for ‘‘numerical control’’ units and certain radio equipment operating at for specially designed components of ‘‘motion control boards’’, wire feed type frequencies of 31 GHz or less, and image intensifier tubes (6A002) have electrical discharge machines (2B001), certain digital signal processing been modified. Controls for manual machines specially designed for equipment based upon ‘‘user-accessible monospectral imaging sensors have bevel gears (2B003), systems for programmability’’ by raising the control been added. Under optics, controls on inspection of hemishells (2B006), and parameters in each instance (5A001.b.). certain optical filters and ‘‘fluoride software for ‘‘flexible manufacturing Also, controls have been removed on fiber’’ cable (6A004) have been units’’ (2D002). Two additional items ‘‘stored program controlled’’ switching removed. Under lasers, certain carbon have been added under 2B001. They equipment containing any of the dioxide lasers, semiconductor lasers, include ‘‘specialty machines’’ (i.e. deep following characteristics, functions or ruby lasers, neodymium doped lasers hole drilling machines) and spin- features (5A001.c.): and free electron lasers (6A005) have

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In addition, Specifically, controls have been are under the licensing authority of the controls on materials for optical fiber narrowed on technology for multiple Department of State, Office of Defense preforms for the manufacture of high domed combustors (9E003.a.2), the Trade Controls. Those items are birefringence fibers (6C002), materials technology for gas bearing for gas specifically listed on the CCL to inform for certain low optical absorption turbine engine rotor assemblies the exporter that the corresponding EU materials, and materials for optical fiber (9E003.a.12), and the technology for list entry for such items are under the preforms for the manufacture of fluoride helicopter, tilt rotor or tilt wing aircraft licensing authority of the Department of fibers (6C004) have been removed. power transfer systems. State, Office of Defense Trade Controls. Controls on software specially designed All items removed from national BXA is continuing a comprehensive for bottom or bay cables have been security (NS) controls as a result of the review of the Commerce Control List added and controls on certain primary Wassenaar List of Dual-Use Goods and (CCL) to account for items controlled by radar target data software (6D003) have Technologies will continue to be the Nuclear Suppliers Group (NSG), the been removed. Finally, controls for controlled for antiterrorism (AT) Missile Technology Control Regime certain optical fabrication technology reasons. (MTCR), and the Australia Group (AG) and technology for certain optical fibers Numerous entries that are contained and to correct errors published on (6E003) have been removed. on the Wassenaar List of Dual-Use March 25, 1996, and unavoidably Goods and Technologies are subject to reprinted in this version of the CCL. The Category 7—Navigation and Avionics the export licensing authority of the review will be based in large part upon Controls on inertial navigation Office of Defense Trade Controls, the comments received in response to systems certified for use on ‘‘civil Department of State. This rule will list the March 25 rule and upon ongoing aircraft’’ (7A003) have been removed. all entries that are controlled on the efforts to harmonize the CCL with the Also, controls for direction finder Wassenaar List of Dual-Use Goods and EU’s control list. equipment (7A007), computer aided Technologies, but will specify that those design (CAD) software (7D003), and entries are under the licensing authority Saving Clause technology for electric actuators for of the Office of Defense Trade Controls, This rule revises the numbering and primary flight control and flight control Department of State. structure of certain entries on the optical sensor arrays (7E004) have been On March 25, 1996 (61 FR 12714), Commerce Control List. For items under added. BXA revised the Commerce Control List such entries and for April 15, 1998, by adopting the European Union (EU) BXA will accept license applications for Category 8—Marine numbering system and converted our items described either by the entries in Controls for certain underwater vision former ECCNs to correspond effect immediately before January 15, systems, certain photographic still accordingly. The changes adopted by 1998 or the entries described in this cameras and certain light systems this rule attempts to further harmonize rule. In addition, shipments of items (8A002) have been relaxed. Controls on the CCL with the EU List. This ensures removed from eligibility for export or stirling cycle engine air independent that identical ECCNs on the CCL and the reexport under a particular License power systems (8A002) have been EU List will identify the same item(s). Exception authorization or the clarified. From an enforcement or customs designator NLR, as a result of this perspective, this common numbering Category 9—Propulsion regulatory action, may continue to be system simplifies export controls for all exported or reexported under that Under the section dealing with Test, countries that harmonize to this control License Exception authorization or Inspection and Production Equipment, list. As a result of this harmonization designator until February 17, 1998. several items have been removed, exercise, it was discovered that certain including automated equipment for differences exist between the EU List Rulemaking Requirements measuring airfoil wall thickness, and the CCL and among agencies within 1. This interim rule has been tooling/fixtures, and measuring the U.S., in terms of MTCR related determined to be significant for equipment for hole drilling processing, controls. These differences purposes of E.O. 12866. ceramic core leaching equipment and predominately exist in the area of 2. Notwithstanding any other ceramic shell burn out or firing technology and software controls. For provision of law, no person is required equipment (9B001). Controls on brush most of the entries, the EU text was to respond to, nor shall any person be seals have been narrowed by adding a adopted or modified to ensure that it subject to a penalty for failure to comply control for a temperature limit (9B003) comported to the intent of the MTCR with a collection of information, subject and expanded by adding tools, dies or Annex. For those technology and to the requirements of the Paperwork fixtures for solid state joining of software entries where differences could Reduction Act (PRA), unless that intermetallic airfoil-to-disk not be resolved at the interagency level, collection of information displays a combinations for gas turbine engines it was agreed to maintain the control currently valid OMB Control Number. (9B004). Transducers/strain gauges/ text for those entries as published in the This rule involves collections of accelerometers/thermocouples for March 25 rule, until these differences information subject to the Paperwork vibration equipment (9B006) have also are resolved. Reduction Act of 1995 (44 U.S.C. 3501 been removed. Accordingly, under To ensure that no overlap in controls et seq.) These collections has been software, controls for certain software exists among the regimes and that the approved by the Office of Management for vibration test equipment as well as Wassenaar Arrangement list did not and Budget under control numbers certain development/production decontrol items that are currently 0694–0073, 0694–0086, and 0694–0088. software of test facilities for engines controlled on the MTCR Annex, This rule also contains a new collection- (9D004) have been removed. Finally, a references to certain missile technology of-information requirement subject to

VerDate 02-DEC-97 16:47 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 E:\FR\FM\P15JA0.PT2 15jar2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations 2455 the PRA that has received emergency business proprietary nature or for any 15 CFR Part 746 approval under OMB control number other reason. The Department will Embargoes, Exports, Foreign Trade, 0694-xxxx. The new information return such comments and materials to Reporting and recordkeeping requirement and estimated public the person submitting the comments requirements. burden hours include: recording and will not consider them in the responses (5 minutes each); filing development of final regulations. All 15 CFR Part 762 responses (1 minute each); and public comments on these regulations Administrative practice and transmitting responses to BXA (10 will be a matter of public record and procedure, Business and Industry, minutes per exporter). These estimates will be available for public inspection Exports, Foreign trade, Reporting and include the time for reviewing and copying. In the interest of accuracy recordkeeping requirements. instructions, searching existing data and completeness, the Department sources, gathering and maintaining the requires comments in written form. 15 CFR Part 774 data needed, and completing and Oral comments must be followed by Exports, Foreign Trade. reviewing the collections of written memoranda, which will also be Accordingly, parts 732, 740, 742, 744, information. Send comments regarding a matter of public record and will be 746, 762, and 774 of the Export these burden estimates or any other available for public review and copying. Administration Regulations (15 CFR aspect of these collections of Communications from agencies of the parts 730 through 799) are amended as information, including suggestions for United States Government or foreign follows: reducing the burden, to OMB Desk governments will not be made available 1. The authority citation for parts 732 Officer, New Executive Office Building, for public inspection. and 762 is revised to read as follows: Washington, DC 20503. 3. This rule does not contain policies The public record concerning these Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 12924, 59 FR 43437, with Federalism implications sufficient regulations will be maintained in the Bureau of Export Administration 3 CFR, 1994 Comp., p. 917; E.O. 13026, 3 to warrant preparation of a Federalism CFR, 1995 Comp., p. 228; Notice of August assessment under Executive Order Freedom of Information Records Inspection Facility, Room 4525, 15, 1995, 3 CFR, 1995 Comp., p. 501; Notice 12612. of August 14, 1996, 3 CFR, 1996 Comp., p. 4. The provisions of the Department of Commerce, 14th Street 298; and Notice of August 13, 1997 (62 FR Administrative Procedure Act (5 U.S.C. and Pennsylvania Avenue, N.W., 43629, August 15, 1997). 553) requiring notice of proposed Washington, D.C. 20230. Records in this facility, including written public 2. The authority citation for part 740 rulemaking, the opportunity for public is revised to read as follows: participation, and a delay in effective comments and memoranda date, are inapplicable because this summarizing the substance of oral Authority: 50 U.S.C. app. 2401 et seq.; 50 regulation involves a military and communications, may be inspected and U.S.C. 1701 et seq.; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August foreign affairs function of the United copied in accordance with regulations published in Part 4 of Title 15 of the 15, 1995, 3 CFR, 1995 Comp., p. 501; Notice States (Sec. 5 U.S.C. 553(a)(1)). Further, of August 14, 1996, 3 CFR, 1996 Comp., p. no other law requires that a notice of Code of Federal Regulations. 289; and Notice of August 13, 1997 (62 FR proposed rulemaking and an Information about the inspection and 43629, August 15, 1997). opportunity for public comment be copying of records at the facility may be 3. The authority citation for part 742 given for this interim rule. Because a obtained from Margaret Cornejo, Bureau is revised to read as follows: notice of proposed rulemaking and an of Export Administration Freedom of opportunity for public comment are not Information Officer, at the above Authority: 50 U.S.C. app. 2401 et seq.; 50 required to be given for this rule under address or by calling (202) 482–5653. U.S.C. 1701 et seq.; 18 U.S.C. 2510 et seq.; 5 U.S.C. or by any other law, the 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. List of Subjects 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. analytical requirements of the 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Regulatory Flexibility Act (5 U.S.C. 601 15 CFR Part 732 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 et seq.) are not applicable. CFR, 1994 Comp., p, 917; E.O. 12938, 59 FR However, because of the importance Administrative practice and procedure, Exports, Foreign trade, 59099, 3 CFR, 1995 Comp., p. 950; Notice of of the issues raised by these regulations, August 15, 1995, 3 CFR, 1995 Comp., p. 501; Reporting and recordkeeping this rule is issued in interim form and Notice of August 14, 1996, 3 CFR, 1996 comments will be considered in the requirements. Comp., p. 289; and Notice of August 13, 1997 development of final regulations. 15 CFR Part 740 (62 FR 43629, August 15, 1997). Accordingly, the Department 4–5. The authority citation for part Administrative practice and encourages interested persons who wish 744 is revised to read as follows: to comment to do so at the earliest procedure, Exports, Foreign trade, Authority: 50 U.S.C. app. 2401 et seq.; 50 possible time to permit the fullest Reporting and recordkeeping requirements. U.S.C 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 consideration of their views. U.S.C. 2139a; E.O. 12058, 43 FR 20947, 3 The period for submission of 15 CFR Part 742 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR comments will close February 17, 1998. 33181, 3 CFR, 1993 Comp., p. 608; E.O. The Department will consider all Exports, Foreign Trade. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. comments received before the close of 15 CFR Part 743 915; E.O. 12938, 59 FR 59099, 3 CFR, 1994 the comment period in developing final Comp., p. 950; Notice of August 14, 1996, 3 regulations. Comments received after Administrative practice and CFR, 1996 Comp., p. 298; and Notice of the end of the comment period will be procedure, Exports, Foreign trade, August 13, 1997 (62 FR 43629, August 15, considered if possible, but their Reporting and recordkeeping 1997). consideration cannot be assured. The requirements. 6. The authority citation for part 746 is revised to read as follows: Department will not accept public 15 CFR Part 744 comments accompanied by a request Authority: 50 U.S.C. app. 2401 et seq.; 50 that a part or all of the material be Exports, Foreign Trade, Reporting and U.S.C. 1701 et seq.; 22 U.S.C. 287c; 22 U.S.C. treated confidentially because of its recordkeeping requirements. 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994

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Comp., p. 899; E.O. 12924, 59 FR 43437, 3 Exception in order to comply with U.S. § 740.11 Governments and international CFR, 1994 Comp., p. 917; Notice of August Wassenaar obligations. In addition, BXA organizations (GOV). 14, 1996, 3 CFR, 1996 Comp., p. 298; and may inform an exporter, that before * * * * * Notice of August 13, 1997 (62 FR 43629, (a) * * * August 15, 1997). using any License Exception, a notice be submitted with BXA concerning the (2) The following items controlled for 7. The authority citation for part 774 proposed export. national security (NS) reasons under continues to read as follows: 10. Section 740.3 is amended by Export Control Classification Numbers Authority: 50 U.S.C. app. 2401 et seq.; 50 adding a new paragraph (f) to read as (ECCNs) identified on the Commerce U.S.C. 1701 et seq.; 10 U.S.C. 720; 10 U.S.C. follows: Control List may not be exported or 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. reexported under this License Exception 287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; § 740.3 Shipments of Limited Value (LVS). to destinations other than Austria, Sec. 201, Pub. L. 104–58, 109 Stat. 557 (30 * * * * * Belgium, Canada, Denmark, Finland, U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 (f) Reporting requirements. See France, Germany, Greece, Ireland, Italy, U.S.C. app. 466c; 50 U.S.C. app. 5; E.O. § 743.1 of the EAR for reporting Luxembourg, the Netherlands, Portugal, 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. requirements for exports of certain Spain, Sweden, and the United 917; Notice of August 15, 1995, 3 CFR, 1995 commodities under License Exception Kingdom: 1C001, 1C012, 5A001.b.9, Comp., p. 501; Notice of August 14, 1996, 3 LVS. 6A001.a.2.a.1, 6A001.a.2.a.2, CFR, 1996 Comp., p. 298; and Notice of 11. Section 740.4 is revised to read as 6A001.a.2.a.7, 6A001.a.2.b, August 13, 1997 (62 FR 43629, August 15, follows: 6A001.a.2.e.1, 6A001.a.2.e.2, 1997). 6A002.a.1.c, 6A008.l.3., 6B008, § 740.4 Shipments to Country Group B PART 732Ð[AMENDED] 8A001.b., 8A001.d., 8A002.o.3.b., countries (GBS). 9A011; and 8. Section 732.4 of the EAR is License Exception GBS authorizes (i) ‘‘Composite’’ structures or amended by adding a new paragraph exports and reexports to Country Group laminates controlled by 1A002.a., (b)(3)(iv) to read as follows: B (see Supplement No. 1 to part 740) of having an organic ‘‘matrix’’ and made those commodities controlled to the from materials listed under 1C010.c. or § 732.4 Steps regarding License Exceptions. ultimate destination for national 1C010.d.; and security reasons only and identified by (ii) ‘‘Digital’’ computers controlled by * * * * * ‘‘GBS—Yes’’ on the CCL. See § 743.1 of 4A003.b. and having a CTP exceeding (b) * * * the EAR for reporting requirements for 10,000 MTOPS; and (3) * * * (iii) ‘‘Electronic assemblies’’ (iv) If you are exporting under License exports of certain commodities under controlled by 4A003.c. and capable of Exceptions GBS, CIV, LVS, CTP, TSR, or License Exception GBS. enhancing performance by aggregation GOV, you should review § 743.1 of the 12. Section 740.5 is amended by of ‘‘computing elements’’ so that the EAR to determine the applicability of adding a new sentence at the end to CTP of the aggregation exceeds 10,000 certain reporting requirements. read as follows: MTOPS; and * * * * * § 740.5 Civil end-users (CIV). (iv) Processing equipment controlled by 6A001.a.2.c. and specially designed PART 740Ð[AMENDED] * * * See § 743.1 of the EAR for reporting requirements for exports of for real time application with towed 9. Section 740.2 is amended: certain commodities under License acoustic hydrophone arrays; and a. By adding a new paragraph (a)(5); Exception CIV. (v) Bottom or bay cable systems and 13. Section 740.6 is amended by controlled by 6A001.a.2.e.3 and having b. By adding a new paragraph (c) to adding paragraph (b) to read as follows: processing equipment specially read as follows: designed for real time application with § 740.6 Technology and software under bottom or bay cable systems; and § 740.2 Restrictions on all License restriction (TSR). (vi) ‘‘Software’’, as follows: Exceptions. * * * * * (A) Controlled by 4D001, specially (a) * * * (b) Reporting requirements. See designed for the ‘‘development’’ or (5) The item is controlled for missile ‘‘production’’ for items controlled by technology (MT) reasons, except that the § 743.1 of the EAR for reporting requirements for exports of certain 4A003.b or .c, as defined by paragraphs items described in ECCNs 6A008, (a)(2)(ii) and (iii) of this section; and 7A001, 7A002, 7A004, 7A101, 7A102, commodities under License Exception TSR. (B) Controlled by 5D001.a, specially 7A103, 7A104, 7B001, 7D001, 7D002, designed for items controlled by 7D003, 7D101, 7D102, 7E003, or 7E101, 14. Section 740.7 is amended by revising paragraph (f) to read as follows: 5A001.b.9; and may be exported as part of a manned (C) Controlled by 6D001 for items aircraft, satellite, land vehicle or marine § 740.7 Computers (CTP). controlled by 6A008.l.3 or 6B008; and vehicle or in quantities appropriate for * * * * * (D) Controlled by 6D003.a; and replacement parts for such applications (E) Controlled by 7D003.a or 7D003.b; (f) Reporting requirements. See under § 740.9(a)(2)(ii) (License and § 743.1 of the EAR for reporting Exception TMP for kits consisting of (F) Controlled by 8D001, specially requirements for exports of certain replacement parts), § 740.10 (License designed for the ‘‘development’’ or commodities under License Exception Exception RPL), § 740.13 (License ‘‘production’’ of equipment controlled CTP. Exception TSU), or § 740.15(c) (License by 8A001.b, 8A001.d, or 8A002.o.3.b; Exception AVS for equipment and spare 15. Section 740.11 is amended: and parts for permanent use on a vessel or a. By revising paragraph (a)(2); (G) Controlled by 9D001, specially aircraft). b. By revising paragraph (b)(2)(iii); designed for the ‘‘development’’ of * * * * * c. By revising paragraph (b)(2)(iv), and equipment or ‘‘technology’’ controlled (c) BXA may by informing the d. By adding a new Supplement No. by 9A011, 9E003.a.1, or by 9E003.a.3, exporter, suspend or revoke any License 1, as follows: for items controlled by 1A002.a, as

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(v) Bottom or bay cable systems controlled Control List. (b) * * * by 6A001.a.2.e.3 and having processing (b) Diplomatic and consular missions of a (2) * * * equipment specially designed for real time cooperating government. License Exception (iii) (A) Items for official use within application with bottom or bay cable GOV is available for all items consigned to national territory by agencies of the U.S. systems; and for the official use of a diplomatic or Government. This License Exception is (vi) ‘‘Software’’, as follows: consular mission of a cooperating available for all items consigned to and (A) Controlled by 4D001, specially government located in any country in designed for the ‘‘development’’ or Country Group B (see Supplement No. 1 to for the official use of any agency of a part 740), except: cooperating government within the ‘‘production’’ for items controlled by 4A003.b or .c, as defined by paragraphs (1) Items identified on the Commerce territory of any cooperating government, (a)(1)(ii) and (iii) of this Supplement; and Control List as controlled for national except items described in paragraph (a) (B) Controlled by 5D001.a, specially security (NS) reasons under Export Control to Supplement No. 1 of this section: designed for items controlled by 5A001.b.9; Classification Numbers (ECCNs) as follows (B) Reporting requirements. See and for export or reexport to destinations other § 743.1 of the EAR for reporting (C) Controlled by 6D001 for items than Austria, Belgium, Canada, Denmark, requirements for exports of certain items controlled by 6A008.l.3 or 6B008; and Finland, France, Germany, Greece, Ireland, (D) Controlled by 6D003.a; and Italy, Luxembourg, the Netherlands, Portugal, under this paragraph (b)(2)(iii). Spain, Sweden, or the United Kingdom: (iv) (A) Diplomatic and consular (E) Controlled by 7D003.a or 7D003.b; and (F) Controlled by 8D001, specially 1C001, 1C012, 5A001.b.9, 6A001.a.2.a.1, missions of a cooperating government. 6A001.a.2.a.2, 6A001.a.2.a.7, 6A001.a.2.b, This License Exception is available for designed for the ‘‘development’’ or ‘‘production’’ of equipment controlled by 6A001.a.2.e.1, 6A001.a.2.e.2, 6A002.a.1.c, all items consigned to and for the 8A001.b, 8A001.d, or 8A002.o.3.b; and 6A008.l.3., 6B008, 8A001.b., 8A001.d., official use of a diplomatic or consular (G) Controlled by 9D001, specially 8A002.o.3.b., 9A011; and mission of a cooperating government designed for the ‘‘development’’ of (i) ‘‘Composite’’ structures or laminates controlled by 1A002.a., having an organic located in any country in Country equipment or ‘‘technology’’ controlled by ‘‘matrix’’ and made from materials listed 9A011, 9E003.a.1, or by 9E003.a.3, for items Group B (see Supplement No. 1 to part under 1C010.c. or 1C010.d.; and controlled by 1A002.a, as described in 740), except items described in (ii) ‘‘Digital’’ computers controlled by paragraph (a)(1)(i) of this Supplement; and paragraph (b) of Supplement No. 1 of 4A003.b. and having a CTP exceeding 10,000 (H) Controlled by 9D002 for ‘‘software’’ this section. MTOPS; and (B) Reporting requirements. See specially designed for the ‘‘production’’ of (iii) ‘‘Electronic assemblies’’ controlled by equipment controlled by 9A011; and § 743.1 of the EAR for reporting 4A003.c. and capable of enhancing (I) Controlled by 9D004.a or .c. performance by aggregation of ‘‘computing requirements for exports of certain items (vii) ‘‘Technology’’, as follows: under this paragraph (b)(2)(iv). elements’’ so that the CTP of the aggregation (A) Controlled by 5E001.a for items exceeds 10,000 MTOPS; and * * * * * controlled by 5A001.b.9 or 5D001.a; and (iv) Processing equipment controlled by (B) Controlled by 1E001 for items Supplement No. 1 to § 740.11—Additional 6A001.a.2.c. and specially designed for real controlled by 1A002.a, 1C001, or 1C102 as time application with towed acoustic Restrictions on Use of License Exception described by paragraph (a)(1)(i) of this GOV hydrophone arrays; and Supplement; and (v) Bottom or bay cable systems controlled (a) Items for official use within national (C) Controlled by 6E001 for the by 6A001.a.2.e.3 and having processing territory by agencies of the U.S. Government. ‘‘development’’ of equipment or ‘‘software’’ equipment specially designed for real time License Exception GOV is available for all in 6A001.a.2.a.1, 6A001.a.2.a.2, application with bottom or bay cable items consigned to and for the official use of 6A001.a.2.a.7, 6A001.a.2.b, 6A001.a.2.c, systems; any agency of a cooperating government 6A001.a.2.3, 6A002.a.1.c, 6A008.l.3, or (vi) ‘‘Software’’, as follows: within the territory of any cooperating 6B008, as described in paragraph (a)(1) of (A) Controlled by 4D001, specially government, except: this Supplement; and designed for the ‘‘development’’ or (1) Items identified on the Commerce (D) Controlled by 6E002 for the ‘‘production’’ for items controlled by 4A003 Control List as controlled for national ‘‘production’’ of equipment controlled by .b or .c, as defined by paragraphs (b)(1) (ii) security (NS) reasons under Export Control 6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.7, or (iii) of this Supplement; and Classification Numbers (ECCNs) as follows 6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.3, (B) Controlled by 5D001.a, specially for export or reexport to destinations other 6A002.a.1.c, 6A008.l.3, or 6B008, as designed for items controlled by 5A001.b.9; than Austria, Belgium, Canada, Denmark, described in paragraph (a)(1) of this and Finland, France, Germany, Greece, Ireland, Supplement; and (C) Controlled by 6D001 for items Italy, Luxembourg, the Netherlands, Portugal, (E) Controlled by 8E001 for items controlled by 6A008.l.3 or 6B008; and Spain, Sweden, or the United Kingdom: controlled by 8A001.b, 8A002.o.3.b, or (D) Controlled by 6D003.a; and 1C001, 1C012, 5A001.b.9, 6A001.a.2.a.1, 8A001.d; and (E) Controlled by 7D003.a or 7D003.b; and 6A001.a.2.a.2, 6A001.a.2.a.7, 6A001.a.2.b, (F) Controlled by 9E001 for items (F) Controlled by 8D001, specially 6A001.a.2.e.1, 6A001.a.2.e.2, 6A002.a.1.c, controlled by 9A011, 9D001, or 9D002; and designed for the ‘‘development’’ or 6A008.l.3., 6B008, 8A001.b., 8A001.d., (G) Controlled by 9E002 for items ‘‘production’’ of equipment controlled by 8A002.o.3.b., 9A011; and controlled by 9A011; and 8A001.b, 8A001.d, or 8A002.o.3.b; and (i) ‘‘Composite’’ structures or laminates (H) Controlled by 9E003.a.1; and (G) Controlled by 9D001, specially controlled by 1A002.a., having an organic (I) Controlled by 9E003.a.3 for items designed for the ‘‘development’’ of ‘‘matrix’’ and made from materials listed controlled by 1A002.a as described in equipment or ‘‘technology’’ controlled by under 1C010.c. or 1C010.d.; and paragraph (a)(1) of this Supplement. 9A011, 9E003.a.1, or by 9E003.a.3, for items (ii) ‘‘Digital’’ computers controlled by (2) Items identified on the Commerce controlled by 1A002.a, as described in 4A003.b. and having a CTP exceeding 10,000 Control List as controlled for missile paragraph (b)(1)(i) of this Supplement; and MTOPS; and technology (MT), chemical and biological (H) Controlled by 9D002 for ‘‘software’’ (iii) ‘‘Electronic assemblies’’ controlled by warfare (CB), or nuclear nonproliferation specially designed for the ‘‘production’’ of 4A003.c. and capable of enhancing (NP) reasons; equipment controlled by 9A011; and

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(I) Controlled by 9D004 .a or .c. (3) Exporters must keep accurate than 42 mm and there is no capability of (vii) ‘‘Technology’’, as follows: records of each export to countries not mounting chucks (machines may have (A) Controlled by 5E001.a for items included in Country Group A:1 (see drilling and/or milling capabilities for controlled by 5A001.b.9 or 5D001.a; and Supplement No. 1 to part 740 of the machining parts with diameters less than 42 (B) Controlled by 1E001 for items mm); or milling machines controlled by controlled by 1A002.a, 1C001, or 1C102 as EAR) of a computer with a CTP greater 2B001.b with x-axis travel greater than two described by paragraph (b)(1) of this than 4,000 MTOPS. These records must meters and overall ‘‘positioning accuracy’’ on Supplement; and be submitted semiannually to BXA and the x-axis more (worse) than 0.030 mm. (C) Controlled by 6E001 for the must contain the information as Therefore, exports of such items under ‘‘development’’ of equipment or ‘‘software’’ described in § 743.1 of the EAR. License Exception GOV are subject to in 6A001.a.2.a.1, 6A001.a.2.a.2, * * * * * reporting requirements. 6A001.a.2.a.7, 6A001.a.2.b, 6A001.a.2.c, 18. A new part 743 is added to read (iii) Category 3: 3A002.g.2, 3B001.a.2, 6A001.a.2.3, 6A002.a.1.c, 6A008.l.3, or as follows: 6B008, as described in paragraph (b)(1) of 3D001, and 3E001; (iv) Category 4: 4A001.a.2 and .b, this Supplement; and PART 743ÐSPECIAL REPORTING (D) Controlled by 6E002 for the 4A003.b and .c (see paragraph (c)(2) of ‘‘production’’ of equipment controlled by Authority: 50 U.S.C. app. 2401 et seq.; 50 this section), 4D001, 4D003.c, and 6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.7, U.S.C. 1701 et seq.; E.O. 12924, 59 FR 43437, 4E001; 6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.3, 3 CFR, 1994 Comp., p. 917; Notice of August (v) Category 5: 5A001.b.8, 5B001 6A002.a.1.c, 6A008.l.3, or 6B008, as 15, 1995, 3 CFR, 1995 Comp., p. 501; Notice (items specially designed for described in paragraph (b)(1) of this of August 14, 1996, 3 CFR, 1996 Comp., p. 5A001.b.8), 5D001.a and .b, 5E001.a, Supplement; and 289; and Notice of August 13, 1997 (62 FR 5A002, 5B002, 5D002, and 5E002; (E) Controlled by 8E001 for items 43629, August 15, 1997). controlled by 8A001.b, 8A002.o.3.b, or (vi) Category 6: 6A001.a.1.b, .a.2.c, 8A001.d; and § 743.1 Wassenaar Arrangement. .a.2.d, and .a.2.e; 6A002.b, 6A004.c and (F) Controlled by 9E001 for items (a) Scope. This section outlines d, 6A006.g and h, 6A008.d, .h, and .k; controlled by 9A011, 9D001, or 9D002; and special reporting requirements for 6D001, 6D003.a, 6E001, and 6E002; (G) Controlled by 9E002 for items (vii) Category 8: 8A001.c; 8A002.b, .h, exports of certain commodities, software controlled by 9A011; and .j, .o.3.a, and .p; 8D001, 8D002, 8E001, and technology controlled under the (H) Controlled by 9E003.a.1; and and 8E002.a; and Wassenaar Arrangement. Such reports (I) Controlled by 9E003.a.3 for items (viii) Category 9: 9B001.b, 9D001, must be submitted to BXA semiannually controlled by 1A002.a as described in 9D002, 9D004.a and .c, 9E001, 9E002, paragraph (b)(1)(i) of this Supplement. in accordance with the provisions of 9E003.a.1, 9E003.a.2, .a.3, .a.4, .a.5, .a.8, (2) Items identified on the Commerce paragraph (f) of this section, and records and .a.9. Control List as controlled for missile of all exports subject to the reporting (2) Reports for ‘‘digital computers’’ technology (MT), chemical and biological requirements of this section must be and ‘‘electronic assemblies’’ controlled warfare (CB), or nuclear nonproliferation kept in accordance with part 762 of the (NP) reasons; under ECCN 4A003.b and .c are EAR. This section does not require (3) Regional stability items controlled required only for computers with a reports for reexports. under Export Control Classification Numbers composite theoretical performance (ECCNs) 6A002, 6A003, 6E001, 6E002, (b) Requirements. You must submit two (2) copies of each report required (CTP) exceeding 4,000 MTOPS or 7D001, 7E001, 7E002, and 7E101 as computer enhancements thereof such described in § 742.6(a)(1) of the EAR; or under the provisions of this section and (4) Encryption items controlled for EI maintain accurate supporting records that the CTP exceeds 4,000 MTOPS. reasons as described in the Commerce (see § 762.2(b) of the EAR) for all Records for software controlled by Control List. exports of items specified in paragraph 4D001 are required for software (c) of this section under any of the specially designed for the development PART 742Ð[AMENDED] following License Exceptions or production of computers having a CTP exceeding 4,000 MTOPS. For the 16. Section 742.6(a)(1) is amended: authorized by part 740 of the EAR: a. By removing the phrase ‘‘6D102 License Exceptions GBS, CIV, TSR, LVS, calculation of CTP, see the Technical (only software for development of items CTP, and GOV. For purposes of this part Note for Category 4 in the Commerce in 6A002.a.1, a.2, a.3, or .c);’’ and 743, ‘‘you’’ has the same meaning as Control List (Supplement No. 2 to part b. By revising the phrase ‘‘7E002 (only ‘‘U.S. exporter’’, as defined in part 772 774 of the EAR). technology for the production of inertial of the EAR. (d) Country Exceptions. You must navigation systems, inertial equipment, (c) Items for which reports are report each export subject to the and specially designed components required. (1) You must submit reports to provisions of this section, except for therefor for civil aircraft).’’ to read BXA under the provisions of this exports to countries identified in ‘‘7E002 (only technology for the section only for exports of items Country Group A:1 (see Supplement No. production of inertial navigation controlled under the following ECCNs: 1 to part 740 of the EAR). systems, inertial equipment, and (i) Category 1: 1A002, 1C007.c and .d, (e) Information that must be included specially designed components therefor 1C010.c and .d, 1D002, 1E001, 1E002.e, in each report. (1) Each report submitted for civil aircraft); 7E101 (only and 1E002.f.; to BXA for items other than those technology for the use of inertial (ii) Category 2: 2B001.a or .b (certain identified in paragraph (e)(2) of this navigation systems, inertial equipment, items only; see Note to this paragraph) section must include the following and specially designed components for 2B001.f, 2B003, 2D001, 2E001, and information for each export during the civil aircraft).’’ 2E002; time periods specified in paragraph (f) 17. Section 742.12 is amended by of this section: Note to paragraph (c)(1)(ii): The following (i) Export Control Classification revising paragraph (a)(3) and by are not controlled for NP reasons: turning removing paragraph (a)(4) to read as machines controlled by 2B001.a with a Number and paragraph reference as follows: capacity equal to or less than 35 mm identified on the Commerce Control diameter; bar machines (Swissturn), limited List; § 742.12 High performance computers. to machining only bar feed through, if (ii) Number of units in the shipment; (a) * * * maximum bar diameter is equal to or less and

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(iii) Country of ultimate destination. § 743.2 [Reserved] in a ‘‘nuclear reactor’’, including the neutron (2) Reports for ‘‘digital computers’’ absorbing part and the support or suspension and ‘‘electronic assemblies’’ controlled PART 744Ð[AMENDED] structures therefore, and control rod guide under ECCN 4A003.b and .c must tubes; 19. Section 744.8(b) is amended by d. Electronic controls for controlling the include the following information: revising the phrase ‘‘7A006, 7A106, power levels in ‘‘nuclear reactors’’, including (i) Date of shipment; 7A115, 7A994,’’ to read ‘‘7A006, reactor control rod drive mechanisms and (ii) Name and address of the end-user 7A994’’. radiation detection and measuring and each intermediate consignee; instruments to determine neutron flux levels; (iii) CTP of each computer or PART 746Ð[AMENDED] e. Pressure tubes specially designed or aggregation of computing elements in prepared to contain fuel elements and the shipment; 20. Section 746.8(b)(1)(ii) is amended primary coolant in a ‘‘nuclear reactor’’ at an (iv) Quantity shipped; and by revising the phrase ‘‘6E002, 9A115, operating pressure in excess of 5.1 MPa; (v) End-use. 9A991.a,’’ to read ‘‘6E002, 9A991.a,’’. f. Tubes or assemblies of tubes, made from (f) Frequency and timing of reports. zirconium metal or alloy in which the ratio PART 762Ð[AMENDED] of hafnium to zirconium is less than 1:500 You must submit reports subject to the parts by weight, specially designed or provisions of this section semiannually. 21. Section 762.2 is amended by prepared for use in a ‘‘nuclear reactor’’; The reports must be labeled with the revising paragraphs (b)(35) and (b)(36) g. Coolant pumps specially designed or exporting company’s name and address and by adding a new paragraph (b)(37) prepared for circulating the primary coolant at the top of each page and must include to read as follows: of ‘‘nuclear reactors’’; for each such export all the information h. Internal components specially designed specified in paragraph (e) of this § 762.2 Records to be retained. or prepared for the operation of a ‘‘nuclear section. The reports shall cover exports reactor’’, including core support structures, * * * * * thermal shields, baffles, core grid plates and made during six month time periods (b) * * * diffuser plates; spanning from January 1 through June (35) § 764.5, Voluntary self-disclosure; i. Heat exchangers. 30 and July 1 through December 31. (36) § 766.10, Subpoenas; and (1) The first report must be submitted (37) § 743.1, Wassenaar reports. 0A002 Power generating or propulsion to and received by BXA no later than equipment specially designed for use with August 1, 1998 for the partial reporting PART 774Ð[AMENDED] space, marine or mobile ``nuclear reactors''. period beginning January 15, 1998 and (These items are subject to the export licensing authority of the U.S. Department ending June 30, 1998. Thereafter, 22. Supplement No. 1 to part 774 is revised to read as follows: of State, Office of Defense Trade Controls. reports are due according to the See 22 CFR part 121.) provisions of paragraphs (f)(2) and (f)(3) Supplement No. 1 to Part 774—the of this section. Commerce Control List 0A018 Items on the International (2) Reports for the reporting period Munitions List. Category 0—Nuclear Materials, Facilities, ending June 30 must be submitted to and Equipment [and Miscellaneous Items] License Requirements and received by BXA no later than Reason for Control: NS, RS, AT, UN August 1. A. Systems, Equipment and Components Control(s) Country Chart (3) Reports for the reporting period 0A001 ``Nuclear reactors'', i.e., reactors ending December 31 must be submitted capable of operation so as to maintain a NS applies to entire entry NS Column 1 to and received by BXA no later than controlled, self-sustaining fission chain February 1. RS applies to 0A018.c ...... RS Column 2 reaction, and equipment and components AT applies to entire entry AT Column 1 (g) Mailing address and facsimile specially designed or prepared for use in UN applies to entire entry Rwanda number: (1) Two (2) copies of reports connection with a ``nuclear reactor'', required under this section shall be including (see List of Items Controlled). License Exceptions delivered to one of the following License Requirements LVS: $5000 for 0A018.a and b; $3000 for 0A018.c; $1500 for 0A018.d through .f; $0 addresses. BXA will not accept reports Reason for Control: sent C.O.D. for entire entry for Rwanda Control(s): Items described in 0A001 are GBS: N/A (i) For deliveries by U.S. postal subject to the export licensing authority of CIV: N/A service: the Nuclear Regulatory Commission (see 10 CFR part 110) List of Items Controlled Bureau of Export Administration, U.S. License Exceptions Unit: 0A018.a, .b, and .c in $ value; 0A018.d, Department of Commerce, P.O. Box 273, .e, and .f in number. Attn: ‘‘Wassenaar Reports’’, Washington, LVS: N/A Related Controls: N/A D.C. 20044 GBS: N/A Related Definitions: N/A CIV: N/A (ii) For courier deliveries: Items: a. Power controlled searchlights and List of Items Controlled control units therefor, designed for military Bureau of Export Administration, U.S. Unit: N/A. use, and equipment mounting such units; Department of Commerce, Attn: Related Controls: N/A and specially designed parts and accessories ‘‘Wassenaar Reports’’, Room 2705, 14th Related Definitions: N/A therefor; Street and Pennsylvania Ave., N.W., Items: a. Pressure vessels, i.e. metal vessels b. Construction equipment built to military Washington, D.C. 20230 as complete units or X parts therefor, which specifications, specially designed for (2) Reports may also be sent by are specially designed or prepared to contain airborne transport; and specially designed facsimile to: (202) 482–3345, Attn: the core of a ‘‘nuclear reactor’’ and are parts and accessories therefor; ‘‘Wassenaar Reports’’. capable of withstanding the operating c. Specially designed components and (h) Contacts. General information pressure of the primary coolant, including parts for ammunition, except cartridge cases, the top plate for a reactor pressure vessel; powder bags, bullets, jackets, cores, shells, concerning the Wassenaar Arrangement b. Fuel element handling equipment, projectiles, boosters, fuses and components, and reporting obligations thereof is including reactor fuel charging and primers, and other detonating devices and available from the Office of Strategic discharging machines; ammunition belting and linking machines Trade and Foreign Policy Controls, Tel. c. Control rods specially designed or (all of which are subject to the export (202) 482–0092, Fax: (202) 482–4094. prepared for the control of the reaction rate licensing authority of the U.S. Department of

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State, Office of Defense Trade Controls. (See License Exceptions License Exceptions 22 CFR parts 120 through 130.) LVS: N/A LVS: N/A d. Bayonets; GBS: N/A GBS: N/A e. Muzzle-loading (black powder) firearms; CIV: N/A CIV: N/A Note: Antique small arms dating prior to List of Items Controlled List of Items Controlled 1890 and their reproductions are not Unit: $ value controlled by this ECCN 0A018. Unit: $ value Related Controls: N/A Related Controls: N/A f. Military helmets, except: Related Definitions: N/A Related Definitions: N/A f.1. Conventional steel helmets other than Items: The list of items controlled is Items: The list of items controlled is those described by 0A018.f.2 of this entry. contained in the ECCN heading contained in the ECCN heading f.2. Helmets, made of any material, equipped with communications hardware, 0A984 Shotguns, barrel length 18 inches 0A986 Shotgun shells, except buckshot optional sights, slewing devices or (45.72 cm) inches or over; buckshot shotgun shells, and parts. mechanisms to protect against thermal flash shotgun shells; except equipment used or lasers. exclusively to treat or tranquilize animals, License Requirements Note: Helmets described in 0A018.f.1 are and except arms designed solely for signal, Reason for Control: UN controlled by 0A988. Helmets described in flare, or saluting use; and parts, n.e.s. Control(s): UN applies to entire entry. A 0A018.f.2 are controlled by the U.S. License Requirements license is required for items controlled by Department of State, Office of Defense Trade this entry to Cuba, Libya, North Korea and Reason for Control: CC, UN Controls (See 22 CFR part 121, Category X). Rwanda. The Commerce Country Chart is not designed to determine licensing 0A980 Horses by sea. Control(s) Country Chart requirements for this entry. See part 746 of the EAR for additional information License Requirements CC applies to shotguns CC Column 1 Reason for Control: SS with a barrel length License Exceptions Control(s): SS applies to entire entry. For over 18 in. (45.72 cm) LVS: N/A licensing requirements (and possible but less than 24 in. GBS: N/A License Exceptions) proceed directly to (60.96 cm) or buckshot CIV: N/A part 754 of the EAR. The Commerce shotgun shells con- List of Items Controlled Country Chart is not designed to determine trolled by this entry, re- Unit: $ value licensing requirements for items controlled gardless of end-user. Related Controls: N/A for SS reasons CC applies to shotguns CC Column 2 Related Definitions: N/A List of Items Controlled with a barrel length Items: The list of items controlled is Unit: $ value greater than or equal to Related Controls: N/A 24 in. (60.96 cm), re- contained in the ECCN heading Related Definitions: N/A gardless of end-user. 0A988 Conventional military steel helmets Items: The list of items controlled is CC applies to shotguns CC Column 3 as described by 0A018.f.1; and machetes. contained in the ECCN heading with a barrel length greater than or equal to License Requirements 0A982 Saps; thumbcuffs, leg irons, 24 in. (60.96 cm) if for Reason for Control: UN shackles, and handcuffs; straight jackets, sale or resale to police Control(s): UN applies to entire entry. A plastic handcuffs, machetes, conventional or law enforcement. license is required for items controlled by steel military helmets, police helmets and UN applies to entire entry Rwanda this entry to Cuba, Libya, North Korea and shields; and parts and accessories, n.e.s. License Exceptions Rwanda. The Commerce Country Chart is License Requirements not designed to determine licensing Reason for Control: CC, UN LVS: N/A requirements for this entry. See part 746 of GBS: N/A the EAR for additional information CIV: N/A Control(s) Country Chart Note: Exports from the U.S. and List of Items Controlled transhipments to Iran must be licensed by CC applies to entire entry CC Column 1 Unit: $ value the Department of Treasury, Office of Foreign except machetes. Related Controls: This entry does not control Assets Control. (See § 746.7 of the EAR for UN applies to machetes ... Rwanda shotguns with a barrel length of less than additional information on this requirement.) 18 inches (45.72 cm). (See 22 CFR part License Exceptions License Exceptions 121.) These items are subject to the export LVS: N/A licensing authority of the Department of LVS: N/A GBS: N/A State, Office of Defense Trade Controls GBS: N/A CIV: N/A Related Definitions: N/A CIV: N/A List of Items Controlled Items: The list of items controlled is List of Items Controlled Unit: $ value contained in the ECCN heading Unit: $ value Related Controls: N/A Related Controls: N/A Related Definitions: N/A 0A985 Optical sighting devices for firearms (including shotguns controlled by Related Definitions: N/A Items: The list of items controlled is Items: The list of items controlled is contained in the ECCN heading 0A984); discharge type arms (for example, stun guns, shock batons, electric cattle contained in the ECCN heading 0A983 Specially designed implements of prods, immobilization guns and projectiles, B. Test, Inspection and Production torture and thumbscrews; and parts and etc.) except equipment used exclusively to Equipment accessories, n.e.s. treat or tranquilize animals, and except 0B001 Plant for the separation of isotopes License Requirements arms designed solely for signal, flare, or saluting use; and parts, n.e.s. of ``natural uranium'' and ``depleted Reason for Control: CC uranium'', ``special fissile materials'' and License Requirements Control(s): CC applies to entire entry. A ``other fissile materials'', and specially license is required for ALL destinations, Reason for Control: CC, UN designed or prepared equipment and regardless of end-use. Accordingly, a components therefor, as follows (see List of column specific to this control does not Control(s) Country Chart Items Controlled). appear on the Commerce Country Chart. (See part 742 of the EAR for additional CC applies to entire entry CC Column 1 License Requirements information.) UN applies to entire entry Rwanda Reason for Control:

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Control(s): Items described in 0B001 are c.3.a. Maraging steel capable of an ultimate characteristics, and specially designed subject to the export licensing authority of tensile strength of 2,050 MPa or more; components therefor: the Nuclear Regulatory Commission (see 10 c.3.b. Aluminum alloys capable of an c.11.a. Multiphase output of 600 to 2000 CFR part 110). ultimate tensile strength of 460 MPa or more; Hz; License Exceptions or c.11.b. Frequency control better than 0.1%; LVS: N/A c.3.c. ‘‘Fibrous or filamentary materials’’ c.11.c. Harmonic distortion of less than GBS: N/A with a ‘‘specific modulus’’ of more than 3.18 2%; and 6 CIV: N/A x 10 m and a ‘‘specific tensile strength’’ c.11.d. An efficiency greater than 80%; greater than 76.2 x 103 m; c.12. Centrifuge housing/recipients to List of Items Controlled c.4. Magnetic suspension bearings contain the rotor tube assembly of a gas Unit: N/A consisting of an annular magnet suspended centrifuge, consisting of a rigid cylinder of Related Controls: N/A within a housing made of UF6 resistant wall thickness up to 30 mm with precision Related Definitions: N/A materials (e.g. aluminum, aluminum alloys, machined ends and made of or protected by Items: a. Plant specially designed for nickel or alloy containing 60 weight percent UF6 resistant materials; separating isotopes of ‘‘natural uranium’’ or more nickel) containing a damping c.13. Scoops consisting of tubes of up to 12 and ‘‘depleted uranium’’, ‘‘special fissile medium and having the magnet coupling mm internal diameter for the extraction of materials’’ and ‘‘other fissile materials’’, as with a pole piece or second magnet fitted to UF6 gas from within a centrifuge rotor tube follows: the top cap of the rotor; by a Pitot tube action, made of or protected a.1. Gaseous diffusion separation plant; c.5. Specially prepared bearings by UF6 resistant materials; a.2. Gas centrifuge separation plant; comprising a pivot-cup assembly mounted on d. Equipment and components, specially a.3. Aerodynamic separation plant; a damper; designed or prepared for aerodynamic a.4. Chemical exchange separation plant; c.6. Rings or bellows with a wall thickness separation process, as follows: a.5. Ion-exchange separation plant; of 3 mm or less and a diameter of between d.1. Separation nozzles consisting of slit- a.6. Atomic vapor ‘‘laser’’ isotopic 75 mm and 400 mm and designed to give shaped, curved channels having a radius of separation plant; local support to a rotor tube or to join a curvature less than 1 mm and having a knife- a.7. Molecular ‘‘laser’’ isotopic separation number together, made from any of the edge contained within the nozzle which plant; following high strength-to-density ratio separates the gas flowing through the nozzle a.8. Plasma separation plant; materials; into two streams; a.9. Electro magnetic separation plant; c.6.a. Maraging steel capable of an ultimate d.2. Tangential inlet flow-driven b. Equipment and components, specially tensile strength of 2050 MPa or more; cylindrical or conical tubes (vortex tubes), designed or prepared for gaseous diffusion made of or protected by UF6 resistant c.6.b. Aluminum alloys capable of an separation process, as follows: materials with a diameter of between 0.5 cm ultimate tensile strength of 460 MPa or more; b.1. Bellow valves made of or protected by and 4 cm and a length to diameter ratio of or materials resistant to UF6 (e.g., aluminum, 20:1 or less and with one or more tangential c.6.c. ‘‘Fibrous or filamentary materials’’ aluminum alloys, nickel or alloy containing inlets; with a ‘‘specific modulus’’ of more than 3.18 60 weight percent or more nickel), with a d.3. Compressors (positive displacement, x 106 m and a ‘‘specific tensile strength’’ diameter of 40 mm to 1500 mm; 3 centrifugal and axial flow types) or gas b.2.a. Compressors (positive displacement, greater than 76.2 x 10 m;’’. blowers with a suction volume capacity of 2 centrifugal and axial flowtypes) or gas c.7. Baffles of between 75 mm and 400 mm m3/min, made of or protected by materials diameter for mounting inside a rotor tube, blowers with a suction volume capacity of 1 resistant to UF6 (e.g., aluminum, aluminum 3 made from any of the following high m /min or more of UF6, and discharge alloys, nickel or alloy containing 60 weight pressure up to 666.7 kPa, made of or strength-to-density ratio materials: percent or more nickel), and rotary shaft seals c.7.a. Maraging steel capable of an ultimate protected by materials resistant to UF6 (e.g. therefor; aluminum, aluminum alloys, nickel or alloy tensile strength of 2050 MPa or more; d.4. Aerodynamic separation element containing 60 weight percent or more nickel); c.7.b. Aluminum alloys capable of an housings, made of or protected by materials ultimate tensile strength of 460 MPa or more; b.2.b. Rotary shaft seals for compressors or resistant to UF6 to contain vortex tubes or blowers specified in 0B001.b.2.a. and or separation nozzles; designed for a buffer gas in-leakage rate of c.7.c. ‘‘Fibrous or filamentary materials’’ d.5. Heat exchangers made of aluminum, less than 1,000 cm3/min.; with a ‘‘specific modulus’’ of more than 3.18 copper, nickel, or alloy containing more than 6 b.3. Gaseous diffusion barriers made of x 10 m and a ‘‘specific tensile strength’’ 60 weight percent nickel, or combinations of porous metallic, polymer or ceramic greater than 76.2 x 103 m;’’. these metals as clad tubes, designed to materials resistant to corrosion by UF6 with c.8. Top and bottom caps of between 75 operate at pressures of 600 kPa or less; a pore size of 10 to 100 nm, a thickness of mm and 400 mm diameter to fit the ends of d.6. Bellows valves made of or protected by 5 mm or less, and, for tubular forms, a a rotor tube, made from any of the following UF6 resistant materials with a diameter of 40 diameter of 25 mm or less; high strength-to-density ratio materials: to 1500 mm; b.4. Gaseous diffuser housings made of or c.8.a. Maraging steel capable of an ultimate d.7. Process systems for separating UF6 protected by materials resistant to corrosion tensile strength of 2050 MPa or more; or from carrier gas (hydrogen or helium) to 1 by UF6; c.8.b. Aluminum alloys capable of an ppm UF6 content or less, including: b.5. Heat exchangers made of aluminum, ultimate tensile strength of 460 MPa or more; d.7.a. Cryogenic heat exchangers and copper, nickel, or alloys containing more c.8.c. ‘‘Fibrous or filamentary materials’’ cryoseparators capable of temperatures of than 60 weight percent nickel, or with a ‘‘specific modulus’’ of more than 3.18 ¥120° C or less; combinations of these metals as clad tubes, x 106 m and a ‘‘specific tensile strength’’ d.7.b. Cryogenic refrigeration units capable designed to operate at sub-atmospheric greater than 76.2 x 103 m. of temperatures of ¥120° C or less; pressure with a leak rate that limits the c.9. Molecular pumps comprised of d.7.c. Separation nozzle or vortex tube pressure rise to less than 10 Pa per hour cylinders having internally machined or units for the separation of UF6 from carrier under a pressure differential of 100 kPa; extruded helical grooves and internally gas; c. Equipment and components, specially machined bores; d.7.d. UF6 cold traps capable of designed or prepared for gas centrifuge c.10. Ring-shaped motor stators for temperatures of ¥20° C or less; separation process, as follows: multiphase AC hysteresis (or reluctance) e. Equipment and components, specially c.1. Gas centrifuges; motors for synchronous operation within a designed or prepared for chemical exchange c.2. Complete rotor assemblies consisting vacuum in the frequency range of 600 to separation process, as follows: of one or more rotor tube cylinders; 2,000 Hz and a power range of 50 to 1,000 e.1. Fast-exchange liquid-liquid centrifugal c.3. Rotor tube cylinders with a thickness Volt-Amps; contactors with stage residence time of 30 of 12 mm or less, a diameter of between 75 c.11. Frequency changers (converters or seconds or less and resistant to concentrated mm and 400 mm, made from any of the inverters) specially designed or prepared to hydrochloric acid (e.g., made of or lined with following high strength-to-density ratio supply motor stators for gas centrifuge suitable plastic materials such as materials: enrichment, having all of the following fluorocarbon polymers or lined with glass);

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e.2. Fast-exchange liquid-liquid pulse the electron beam gun and the product and j.1. Ion sources, single or multiple, columns with stage residence time of 30 tails collectors; consisting of a vapor source, ionizer, and seconds or less and resistant to concentrated g.5. ‘‘Lasers’’ or ‘‘laser’’ systems for the beam accelerator made of suitable materials hydrochloric acid (e.g., made of or lined with separation of uranium isotopes with a (e.g., graphite, stainless steel, or copper) and suitable plastic materials such as spectrum frequency stabilizer for operation capable of providing a total ion beam current fluorocarbon polymers or lined with glass); over extended periods of time; of 50 mA or greater; e.3. Electrochemical reduction cells N.B.: See also 6A005 and 6A205. j.2. Ion collector plates for collection of designed to reduce uranium from one h. Equipment and components, specially enriched or depleted uranium ion beams, valence state to another; designed or prepared for molecular ‘‘laser’’ consisting of two or more slits and pockets e.4. Electrochemical reduction cells feed isotopic separation process, as follows: and made of suitable non-magnetic materials equipment to take U∂4 from the organic h.1. Supersonic expansion nozzles for (e.g., graphite or stainless steel); stream and, for those parts in contact with cooling mixtures of UF6 and carrier gas to j.3. Vacuum housings for uranium the process stream, made of or protected by 150 K or less and made from UF6 resistant electromagnetic separators made of non- suitable materials (e.g., glass, fluorocarbon materials; magnetic materials (e.g. graphite or stainless h.2. Uranium fluoride (UF5) product polymers, polyphenyl sulphate, polyether steel) and designed to operate at pressures of collectors consisting of filter, impact, or sulfone and resin-impregnated graphite); 0.1 Pa or lower; cyclone-type collectors or combinations e.5. Feed preparation systems for j.4. Magnet pole pieces with a diameter thereof, and made of UF5/UF6 resistant producing high purity uranium chloride greater than 2 m; solution consisting of dissolution, solvent materials (e.g. aluminum, aluminum alloys, nickel or alloys containing 60 weight percent j.5. High voltage power supplies for ion extraction and/or ion exchange equipment sources, having all of the following for purification and electrolytic cells for of nickel and UF6 resistant fully fluorinated characteristics: reducing the uranium U∂6 or U∂4 to U∂3; hydrocarbon polymers); j.5.a. Capable of continuous operation; e.6. Uranium oxidation systems for h.3. Equipment for fluorinating UF5 to UF6; j.5.b. Output voltage of 20,000 V or greater; oxidation of U∂3 to U∂4; h.4. Compressors made of or protected by j.5.c. Output current of 1 A or greater; f. Equipment and components, specially materials resistant to UF6 (e.g., aluminum, j.5.d. Voltage regulation of better than designed or prepared for ion-exchange aluminum alloys, nickel or alloy containing 0.01% over a period of 8 hours; separation process, as follows: 60 weight percent or more nickel), and rotary N.B.: See also 3A227. f.1. Fast reacting ion-exchange resins, shaft seals therefor; j.6. Magnet power supplies (high power, pellicular or porous macro-reticulated resins h.5. Process systems for separating UF6 direct current) having all of the following in which the active chemical exchange from carrier gas (e.g., nitrogen or argon) characteristics: groups are limited to a coating on the surface including: h.5.a. Cryogenic heat exchangers and of an inactive porous support structure, and j.6.a. Capable of continuous operation with cryoseparators capable of temperatures of other composite structures in any suitable a current output of 500 A or greater at a ¥120 °C or less; form, including particles or fibers, with voltage of 100 V or greater; h.5.b. Cryogenic refrigeration units capable diameters of 0.2 mm or less, resistant to j.6.b. Current or voltage regulation better of temperatures of ¥120 °C or less; concentrated hydrochloric acid and designed than 0.01% over a period of 8 hours. h.5.c. UF6 cold traps capable of N.B.: See also 3A226. to have an exchange rate half-time of less temperatures of ¥20 °C or less; than 10 seconds and capable of operating at ° ° h.6. ‘‘Lasers’’ or ‘‘laser’’ systems for the 0B002 Specially designed or prepared temperatures in the range of 100 C to 200 separation of uranium isotopes with a auxiliary systems, equipment and C; spectrum frequency stabilizer for operation components, as follows, (see List of Items f.2. Ion exchange columns (cylindrical) over extended periods of time; Controlled) for isotope separation plant with a diameter greater than 1000 mm, made N.B.: See also 6A005 and 6A205. specified in 0B001, made of or protected by of or protected by materials resistant to i. Equipment and components, specially UF6 resistant materials. concentrated hydrochloric acid (e.g., designed or prepared for plasma separation License Requirements titanium or fluorocarbon plastics) and process, as follows: capable of operating at temperatures in the Reason for Control: ° ° i.1. Product and tails collectors made of or range of 100 C to 200 C and pressures above protected by materials resistant to the heat Control(s): Items described in 0B002 are 0.7 MPa; and corrosion of uranium vapor such as subject to the export licensing authority of f.3. Ion exchange reflux systems (chemical yttria-coated graphite or tantalum; the Nuclear Regulatory Commission (see 10 or electrochemical oxidation or reduction i.2. Radio frequency ion excitation coils for CFR part 110) systems) for regeneration of the chemical frequencies of more than 100 kHz and License Exceptions reducing or oxidizing agents used in ion capable of handling more than 40 kW mean LVS: N/A exchange enrichment cascades; power; GBS: N/A g. Equipment and components, specially i.3. Microwave power sources and CIV: N/A designed or prepared for atomic vapor antennae for producing or accelerating ions, List of Items Controlled ‘‘laser’’ isotopic separation process, as with an output frequency greater than 30 follows: GHz and mean power output greater than 50 Unit: N/A g.1. High power electron beam guns with kW; Related Controls: N/A total power of more than 50 kW and strip or i.4. Uranium plasma generation systems; Related Definitions: N/A scanning electron beam guns with a i.5. Liquid uranium metal handling Items: a. Feed autoclaves, ovens or systems delivered power of more than 2.5 kW/cm for systems consisting of crucibles, made of or used for passing UF6 to the enrichment use in uranium vaporization systems; protected by suitable corrosion and heat process; g.2. Trough shaped crucibles and cooling resistant materials (e.g., tantalum, yttria- b. Desublimers or cold traps, used to equipment made of or protected by materials coated graphite, graphite coated with other remove UF6 from the enrichment process for resistant to heat and corrosion of molten rare earth oxides or mixtures thereof), and subsequent transfer upon heating; uranium or uranium alloy’s (e.g., tantalum, cooling equipment for the crucibles; c. Product and tails stations for transferring yttria-coated graphite, graphite coated with N.B.: See also 2A225. UF6 into containers; other rare earth oxides or mixtures thereof); i.6. Separator module housings d. Liquefaction or solidification stations N.B: See also 2A225. (cylindrical) for containing the uranium used to remove UF6 from the enrichment g.3. Product and tails collector systems plasma source, radio-frequency drive coil process by compressing and converting UF6 made of or lined with materials resistant to and the product and tails collectors and to a liquid or solid form; the heat and corrosion of uranium vapor, made of a suitable non-magnetic material e. Piping systems and header systems such as yttria-coated graphite or tantalum; (e.g. stainless steel); specially designed for handling UF6 within g.4. Separator module housings j. Equipment and components, specially gaseous diffusion, centrifuge or aerodynamic (cylindrical or rectangular vessels) for designed or prepared for electromagnetic cascades made of or protected by UF6 containing the uranium metal vapor source, separation process, as follows: resistant materials;

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f.1. Vacuum manifolds or vacuum headers a.2. Ammonia-hydrogen exchange plants; Control(s): Items described in 0B006 are having a suction capacity of 5 m3/minute or a.3. Hydrogen distillation plants; subject to the export licensing authority of more; or b. Equipment and components, as follows, the Nuclear Regulatory Commission (see 10 f.2. Vacuum pumps specially designed for designed for: CFR part 110) use in UF6 bearing atmospheres; b.1. Hydrogen sulphide-water exchange License Exceptions g. UF6 mass spectrometers/ion sources process: LVS: N/A specially designed or prepared for taking on- b.1.a. Tray exchange towers; GBS: N/A line samples of feed, product or tails from b.1.b. Hydrogen sulphide gas compressors; CIV: N/A UF6 gas streams and having all of the b.2. Ammonia-hydrogen exchange process: List of Items Controlled following characteristics: b.2.a. High-pressure ammonia-hydrogen g.1. Unit resolution for mass of more than exchange towers; Unit: N/A 320 amu; b.2.b. High-efficiency stage contactors; Related Controls: N/A g.2. Ion sources constructed of or lined b.2.c. Submersible stage recirculation Related Definitions: N/A with nichrome or monel, or nickel plated; pumps; Items: a. Fuel element chopping or shredding g.3. Electron bombardment ionization b.2.d. Ammonia crackers designed for machines, i.e. remotely operated equipment sources; and pressures of more than 3 MPa; to cut, chop, shred or shear irradiated ‘‘nuclear reactor’’ fuel assemblies, bundles or g.4. Collector system suitable for isotopic b.3. Hydrogen distillation process: rods; analysis. b.3.a. Hydrogen cryogenic distillation b. Dissolvers, critically safe tanks (e.g. towers and cold boxes designed for operation 0B003 Plant for the production of uranium small diameter, annular or slab tanks) below 35 K (¥238° C); hexafluoride (UF ) and specially designed specially designed or prepared for the 6 b.3.b. Turboexpanders or turboexpander- or prepared equipment and components dissolution of irradiated ‘‘nuclear reactor’’ compressor sets designed for operation below therefor, as follows (see List of Items fuel, which are capable of withstanding hot, 35 K (¥238° C); Controlled). highly corrosive liquids, and which can be b.4. Heavy water concentration process to License Requirements remotely loaded and maintained; reactor grade level (99.75 weight percent c. Counter-current solvent extractors and Reason for Control: NP, AT deuterium oxide): ion-exchange processing equipment specially b.4.a. Water distillation towers containing designed or prepared for use in a plant for Control(s) Country Chart specially designed packings; the reprocessing of irradiated ‘‘natural b.4.b. Ammonia distillation towers uranium’’, ‘‘depleted uranium’’ or ‘‘special NP applies to entire entry NP Column 1 containing specially designed packings; fissile materials’’ and ‘‘other fissile AT applies to entire entry AT Column 1 b.4.c. Catalytic burners for conversion of materials’’; License Exceptions fully enriched deuterium to heavy water; d. Process control instrumentation b.4.d. Infrared absorption analyzers LVS: $ value specially designed or prepared for capable of on-line hydrogen-deuterium ratio GBS: N/A monitoring or controlling the reprocessing of analysis where deuterium concentrations are CIV: N/A irradiated ‘‘natural uranium’’, ‘‘depleted equal to or more than 90 weight percent. uranium’’ or ‘‘special fissile materials’’ and List of Items Controlled ‘‘other fissile materials’’; Unit: N/A 0B005 Plant specially designed for the e. Holding or storage vessels specially Related Controls: N/A fabrication of ``nuclear reactor'' fuel designed to be critically safe and resistant to Related Definitions: N/A elements and specially designed equipment the corrosive effects of nitric acid; therefor. Items: a. Plant for the production of UF6; Note: Critically safe tanks may have the b. Equipment and components, as follows, License Requirements following features: specially designed of prepared for UF6 Reason for Control: 1. Walls or internal structures with a boron production: Control(s): Items described in 0B005 are equivalent of at least two percent; b.1. Fluorination and hydrofluorination subject to the export licensing authority of 2. A maximum diameter or 175 mm for screw and fluid bed reactors and flame the Nuclear Regulatory Commission (see 10 cylindrical vessels; or towers; CFR part 110) 3. A maximum width of 75 mm for either b.2. Distillation equipment for the License Exceptions a slab or annular vessel. purification of UF6. LVS: N/A f. Complete systems specially designed or 0B004 Plant for the production of heavy GBS: N/A prepared for the conversion of plutonium water, deuterium or deuterium compounds, CIV: N/A nitrate to plutonium oxide; g. Complete systems specially designed or and specially designed or prepared List of Items Controlled equipment and components therefor, as prepared for the production of plutonium Unit: N/A metal. follows (see List of Items Controlled). Related Controls: N/A Note: Plant for the reprocessing of License Requirements Related Definitions: A plant for the irradiated ‘‘nuclear reactor’’ fuel elements fabrication of ‘‘nuclear reactor’’ fuel Reason for Control: includes equipment and components which elements includes equipment which: (a) Control(s): Items described in 0B004 are normally come into direct contact with and Normally comes into direct contact with or subject to the export licensing authority of directly control the irradiated fuel and the directly processes or controls the the Nuclear Regulatory Commission (see 10 major nuclear material and fission product production flow of nuclear materials; (b) CFR part 110) processing streams. Seals the nuclear materials within the License Exceptions cladding; (c) Checks the integrity of the 0B008 Equipment for ``nuclear reactors''. LVS: N/A cladding or the seal; and (d) Checks the License Requirements GBS: N/A finish treatment of the solid fuel CIV: N/A Items: The List of Items Controlled is Reason for Control: NP, AT List of Items Controlled contained in the ECCN heading Control(s) Country Chart Unit: N/A 0B006 Plant for the reprocessing of Related Controls: N/A irradiated ``nuclear reactor'' fuel elements, NP applies to entire entry NP Column 2 Related Definitions: N/A and specially designed or prepared AT applies to entire entry AT Column 1 Items: a. Plant for the production of heavy equipment and components therefor, License Exceptions water, deuterium or deuterium compounds, including (see List of Items Controlled). as follows: LVS: $ value a.1. Hydrogen sulphide-water exchange License Requirements GBS: N/A plants; Reason for Control: CIV: N/A

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List of Items Controlled C. Materials Items: The list of items controlled is contained in the ECCN heading Unit: N/A 0C001 ``Natural uranium'' or ``depleted Related Controls: N/A uranium'' or thorium in the form of metal, 0C005 Graphite, nuclear-grade, having a Related Definitions: N/A alloy, chemical compound or concentrate purity level of less than 5 parts per million Items: a. Simulators specially designed for and any other material containing one or ``boron equivalent'' and with a density ‘‘nuclear reactors’’; more of the foregoing. greater than 1.5 g/cm 3. b. Ultrasonic or eddy current test License Requirements License Requirements equipment specially designed for ‘‘nuclear Reason for Control: Reason for Control: reactors’’. Control(s): Items described in 0C001 are Control(s): Items described in 0C005 are subject to the export licensing authority of subject to the export licensing authority of 0B009 Plant for the conversion of uranium the Nuclear Regulatory Commission (see 10 the Nuclear Regulatory Commission (see 10 and equipment specially designed or CFR part 110) CFR part 110) prepared therefor, as follows (see List of Items Controlled). License Exceptions License Exceptions LVS: N/A LVS: N/A License Requirements GBS: N/A GBS: N/A Reason for Control: CIV: N/A CIV: N/A Control(s): Items described in 0B009 are List of Items Controlled List of Items Controlled subject to the export licensing authority of Unit: N/A Unit: N/A the Nuclear Regulatory Commission (see 10 Related Controls: (1) See also 1A290. (2) This Related Controls: N/A CFR part 110) entry does not control: (a) Four grams or Related Definitions: N/A License Exceptions less of ‘‘natural uranium’’ or ‘‘depleted Items: The list of items controlled is uranium’’ when contained in a sensing contained in the ECCN heading LVS: N/A component in instruments (see 10 CFR part GBS: N/A 110); or (b) ‘‘Depleted uranium’’ specially 0C006 Nickel powder or porous nickel CIV: N/A fabricated for the following civil non- metal, specially prepared for the List of Items Controlled nuclear applications: Shielding; Packaging; manufacture of gaseous diffusion barriers, Ballasts; or Counter-weights as follows (see List of Items Controlled). Unit: N/A Related Definitions: N/A License Requirements Related Controls: N/A Items: The list of items controlled is Reason for Control: Related Definitions: N/A contained in the ECCN heading Items: a. Systems for the conversion of Control(s): Items described in 0C006 are subject to the export licensing authority of uranium ore concentrates to UO3; 0C002 ``Special fissile materials'' and ``other fissile materials''; except, four the Nuclear Regulatory Commission (see 10 b. Systems for the conversion of UO3 to ``effective grams'' or less when contained in CFR part 110) UF6; a sensing component in instruments. License Exceptions c. Systems for the conversion of UO3 to LVS: N/A UO2; License Requirements GBS: N/A d. Systems for the conversion of UO2 to Reason for Control: CIV: N/A UF4; Control(s): Items described in 0C002 are subject to the export licensing authority of List of Items Controlled e. Systems for the conversion of UF4 to the Nuclear Regulatory Commission (see 10 Unit: N/A UF6; CFR part 110) Related Controls: See also 1C240 f. Systems for the conversion of UF4 to License Exceptions Related Definitions: N/A uranium metal; Items: a. Powder with a nickel purity content g. Systems for the conversion of UF6 to LVS: N/A GBS: N/A of 99.9 weight percent or more and a mean UO2; CIV: N/A particle size of less than 10 micrometers h. Systems for the conversion of UF6 to measured by American Society for Testing List of Items Controlled UF4. and Materials (ASTM) B330 standard and Unit: N/A a high degree of particle size uniformity; or 0B986 Equipment specially designed for Related Controls: N/A b. Porous nickel metal produced from manufacturing shotgun shells; and Related Definitions: N/A materials specified in 0C006.a. ammunition hand-loading equipment for Items: The List of Items Controlled is both cartridges and shotgun shells. Contained in the ECCN heading 0C201 Specially prepared compounds or powders, other than nickel, resistant to License Requirements 0C004 Deuterium, heavy water, deuterated corrosion by UF6 (e.g. aluminum oxide and Reason for Control: UN paraffins and other compounds of fully fluorinated hydrocarbon polymers), for Control(s): UN applies to entire entry. A deuterium, and mixtures and solutions the manufacture of gaseous diffusion license is required for items controlled by containing deuterium, in which the isotopic barriers, having a purity of 99.9 weight this entry to Cuba, Libya, North Korea and ratio of deuterium to hydrogen exceeds percent or more and a mean particle size of Rwanda. The Commerce Country Chart is 1:5000. less than 10 micrometers measured by not designed to determine licensing License Requirements American Society for Testing and Materials requirements for this entry. See part 746 of Reason for Control: (ASTM) B330 standard and a high degree of particle size uniformity. the EAR for additional information Control(s): Items described in 0C004 are License Exceptions subject to the export licensing authority of License Requirements the Nuclear Regulatory Commission (see 10 Reason for Control: LVS: N/A CFR part 110) Control(s): Items described in 0C201 are GBS: N/A License Exceptions subject to the export licensing authority of CIV: N/A LVS: N/A the Nuclear Regulatory Commission (see 10 List of Items Controlled GBS: N/A CFR part 110) Unit: $ value CIV: N/A License Exceptions Related Controls: N/A List of Items Controlled LVS: N/A Related Definitions: N/A Unit: N/A GBS: N/A Items: The list of items controlled is Related Controls: N/A CIV: N/A contained in the ECCN heading Related Definitions: N/A List of Items Controlled

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Unit: N/A authority of the Department of Energy (see EAR99 Items subject to the EAR that are Related Controls: N/A 10 CFR part 810) not elsewhere specified in this CCL Related Definitions: N/A Related Definitions: N/A Category or in any other category in the Items: The list of items controlled is Items: The list of items controlled is CCL are designated by the number EAR99. contained in the ECCN heading contained in the ECCN heading Category 1—Materials, Chemicals, D. Software ‘‘Microorganisms’’ & ‘‘Toxins’’ 0E018 ``Technology'' for the 0D001 ``Software'' specially designed or ``development'', ``production'', or ``use'' of A. Systems, Equipment and Components modified for the ``development'', items controlled by 0A018.b through ``production'' or ``use'' of goods controlled 0A018.e. 1A001 Components made from fluorinated by this Category. compounds, as follows (see List of Items License Requirements Controlled). License Requirements Reason for Control: NS, AT, UN License Requirements Reason for Control: NP, AT Reason for Control: NS, AT Control(s) Country Chart Control(s) Country Chart NS applies to entire entry NS Column 1 Control(s) Country Chart NP applies to ‘‘software’’ NP Column 1 AT applies to entire entry AT Column 1 NS applies to entire entry NS Column 2 for items controlled by UN applies to entire entry Rwanda 0B003. AT applies to entire entry AT Column 1 NP applies to ‘‘software’’ NP Column 2 License Exceptions License Exceptions for items controlled by CIV: N/A LVS: $5000 0B008. TSR: Yes GBS: N/A AT applies to entire entry AT Column 1 List of Items Controlled CIV: N/A Unit: N/A License Exceptions List of Items Controlled CIV: N/A Related Controls: N/A Unit: Kilograms TSR: N/A Related Definitions: N/A Related Controls: Items specially designed or Items: The list of items controlled is List of Items Controlled modified for missiles or for items on the contained in the ECCN heading Unit: $ value U.S. Munitions List are subject to the Related Controls: (1) ‘‘Software’’ for items 0E984 ``Technology'' for the export licensing authority of the U.S. controlled by 0A001, 0A002, 0B001, ``development'' or ``production'' of Department of State, Office of Defense 0B002, 0B004, 0B005, 0B006, 0B009, shotguns controlled by 0A984 and Trade Controls (see 22 CFR part 121.) 0C001, 0C002, 0C004, 0C005, 0C006, and buckshot shotgun shells. Related Definitions: N/A 0C201 are subject to the export licensing Items: a. Seals, gaskets, sealants or fuel authority of the Nuclear Regulatory License Requirements bladders specially designed for ‘‘aircraft’’ or Commission (see 10 CFR part 110). (2) Reason for Control: CC, UN aerospace use made from more than 50% by ‘‘Software’’ for items controlled by 0A002 weight of any of the materials controlled by are subject to the export licensing authority Control(s) Country Chart 1C009.b or 1C009.c; of the U.S. Department of State, Office of b. Piezoelectric polymers and copolymers Defense Trade Controls (see 22 CFR part CC applies to ‘‘tech- CC Column 1 made from vinylidene fluoride materials 121) nology’’ for shotguns controlled by 1C009.a: Related Definitions: N/A with a barrel length b.1. In sheet or film form; and Items: The List of Items Controlled is over 18 in. (45.72 cm) b.2. With a thickness exceeding 200 µm; contained in the ECCN heading but less than 24 in. c. Seals, gaskets, valve seats, bladders or (60.96 cm) and shotgun E. Technology diaphragms made from fluoroelastomers shells, regardless of containing at least one vinylether monomer, end-user. 0E001 ``Technology'' according to the specially designed for ‘‘aircraft’’, aerospace or Nuclear Technology Note for the CC applies to ‘‘tech- CC Column 2 missile use. ``development'', ``production'' or ``use'' of nology’’ for shotguns items controlled by this Category. with a barrel length 1A002 ``Composite'' structures or over 24 in. (60.96 cm), License Requirements laminates, having any of the following (see regardless of end-user. List of Items Controlled). Reason for Control: NP, AT CC applies to ‘‘tech- CC Column 3 License Requirements nology’’ for shotguns Control(s) Country Chart with a barrel length Reason for Control: NS, NP, AT over 24 in. (60.96 cm) if NP applies to ‘‘tech- NP Column 1 for sale or resale to po- Control(s) Country Chart nology’’ for items con- lice or law enforcement. trolled by 0B003. UN applies to entire entry Rwanda NS applies to entire entry NS Column 2 NP applies to ‘‘tech- NP Column 2 except finished or semi- nology’’ for items con- License Exceptions finished items specially trolled by 0B008. CIV: N/A designed for purely ci- AT applies to entire entry AT Column 1 TSR: N/A vilian applications as follows: sporting goods, License Exceptions List of Items Controlled automotive industry, CIV: N/A Unit: N/A machine tool industry, TSR: N/A Related Controls: N/A and medical applica- List of Items Controlled Related Definitions: N/A tions. Unit: N/A Items: The list of items controlled is NP applies to 1A002.b.1 NP Column 1 Related Controls: ‘‘Technology’’ for items contained in the ECCN heading in the form of tubes controlled by 0A001, 0A002, 0B001, with an inside diameter 0B002, 0B004, 0B005, 0B006, 0B009, between 75 mm and 400 0C001, 0C002, 0C004, 0C005, 0C006, and mm. 0C201 are subject to the export licensing AT applies to entire entry AT Column 1

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License Requirement Notes: See § 743.1 of 1A004 Protective and detection equipment List of Items Controlled the EAR for reporting requirements for and components, not specially designed for Unit: Kilograms exports under License Exceptions. military use. (These items are subject to the Related Controls: See also 9A010 and 9A110 License Exceptions export licensing authority of the U.S. Related Definitions: N/A Department of State, Office of Defense LVS: $1500; N/A for ‘‘composite’’ structures Items: The list of items controlled is Trade Controls. See 22 CFR part 121.) or laminates controlled by 1A002.a, having contained in the ECCN heading an organic ‘‘matrix’’ and made from 1A005 Body armor, and specially 1A225 Platinized catalysts specially materials controlled by 1C010.c or 1C010.d designed components therefor, not designed or prepared for promoting the GBS: N/A manufactured to military standards or hydrogen isotope exchange reaction CIV: N/A specifications, nor to their equivalents in between hydrogen and water for the List of Items Controlled performance. recovery of tritium from heavy water or for Unit: Kilograms License Requirements the production of heavy water. Related Controls: (1) See also 1A202, 9A010, Reason for Control: NS, UN, AT License Requirements and 9A110. (2) This entry does not control Reason for Control: NP, AT ‘‘composite’’ structures or laminates made Control(s) Country Chart from epoxy resin impregnated carbon Control(s) Country Chart ‘‘fibrous or filamentary materials’’ for the NS applies to entire entry NS Column 2 repair of aircraft structures of laminates, UN applies to entire entry. A license is re- NP applies to entire entry NP Column 1 provided that the size does not exceed one quired for items controlled by this entry AT applies to entire entry AT Column 1 square meter (1 m2) to Cuba, Libya, North Korea and Rwanda. Related Definitions: N/A The Commerce Country Chart is not de- License Exceptions Items: a. An organic ‘‘matrix’’ and made from signed to determine licensing require- LVS: N/A materials controlled by 1C010.c, 1C010.d or ments for this entry. See part 746 of the GBS: N/A 1C010.e; or EAR for additional information. CIV: N/A b. A metal or carbon ‘‘matrix’’ and made AT applies to entire entry AT Column 1 List of Items Controlled from: License Exceptions Unit: Kilograms b.1. Carbon ‘‘fibrous or filamentary LVS: N/A Related Controls: N/A materials’’ with: Related Definitions: N/A b.1.a. A ‘‘specific modulus’’ exceeding GBS: N/A CIV: N/A Items: The list of items controlled is 10.15 x 106 m; and contained in the ECCN heading b.1.b. A ‘‘specific tensile strength’’ List of Items Controlled exceeding 17.7 x 104 m; or Unit: $ value 1A226 Specialized packings for use in b.2. Materials controlled by 1C010.c. Related Controls: (1) Bulletproof and bullet separating heavy water from ordinary water Technical Notes: (1) Specific modulus: resistant vests (body armor) NIJ levels III and made of phosphor bronze mesh Young’s modulus in pascals, equivalent to and IV, are subject to the export licensing (chemically treated to improve wettability) N/m2 divided by specific weight in N/m3, authority of the U.S. Department of State, and designed for use in vacuum distillation measured at a temperature of (296±2) K Office of Defense Trade Controls. (See 22 towers. ((23±2) C) and a relative humidity of CFR part 121.) (2) This entry does not License Requirements ± control individual suits of body armor and (50 5)%. (2) Specific tensile strength: Reason for Control: NP, AT ultimate tensile strength in pascals, accessories therefor, when accompanying equivalent to N/m2 divided by specific their users for his/her own personal Control(s) Country Chart weight in N/m3, measured at a temperature protection. (3) This entry does not control ± ± body armor designed to provide frontal of (296 2) K ((23 2) C) and a relative NP applies to entire entry NP Column 1 humidity of (50±5)%. protection only from both fragment and blast from non-military explosive devices AT applies to entire entry AT Column 1 1A003 Manufactures of non-fluorinated Related Definitions: N/A License Exceptions polymeric substances controlled by Items: The list of items controlled is LVS: N/A 1C008.a.3 in film, sheet, tape or ribbon form contained in the ECCN heading GBS: N/A with either of the following characteristics CIV: N/A (see List of Items Controlled). 1A102 Resaturated pyrolized carbon- carbon materials designed for ``missiles''. List of Items Controlled License Requirements (These items are subject to the export Unit: $ value Reason for Control: NS, AT licensing authority of the U.S. Department Related Controls: N/A of State, Office of Defense Trade Controls. Related Definitions: N/A Control(s) Country Chart See 22 CFR part 121.) Items: The list of items controlled is contained in the ECCN heading NS applies to entire entry NS Column 2 1A202 Composite structures, other than AT applies to entire entry AT Column 1 those controlled by 1A002, in the form of 1A227 High-density (lead glass or other) tubes with an inside diameter of between 75 radiation shielding windows greater than License Exceptions mm and 400 mm made with any of the 0.09 m2 on cold area and with a density LVS: $200 ``fibrous or filamentary materials'' specified greater than 3 g/cm3 and a thickness of 100 GBS: N/A in 1C210.a or with carbon prepreg materials mm or greater; and specially designed CIV: N/A controlled by 1C210.c. frames therefor. List of Items Controlled License Requirements License Requirements Unit: Kilograms Reason for Control: NP, AT Reason for Control: NP, AT Related Controls: This entry does not control manufactures when coated or laminated Control(s) Country Chart Control(s) Country Chart with copper and designed for the production of electronic printed circuit NP applies to entire entry NP Column 1 NP applies to entire entry NP Column 1 boards AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 Related Definitions: N/A Items: a. With a thickness exceeding 0.254 License Exceptions License Exceptions mm; or LVS: N/A LVS: N/A b. Coated or laminated with carbon, GBS: N/A GBS: N/A graphite, metals or magnetic substances′ CIV: N/A CIV: N/A

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List of Items Controlled Related Controls: N/A silicon carbide fibers, including special Unit: $ value Related Definitions: N/A equipment to strain the fiber during heating; Related Controls: Nuclear equipment is also Items: The list of items controlled is d.2. Equipment for the chemical vapor subject to the export licensing authority of contained in the ECCN heading deposition of elements or compounds on the Nuclear Regulatory Commission. (See heated filamentary substrates to manufacture B. Test, Inspection and Production silicon carbide fibers; 10 CFR part 110.) Equipment Related Definitions: N/A d.3. Equipment for the wet-spinning of Items: The list of items controlled is 1B001 Equipment for the production of refractory ceramics (such as aluminum contained in the ECCN heading fibers, prepregs, preforms or ``composites'' oxide); controlled by 1A002 or 1C010, and specially d.4. Equipment for converting aluminum 1A290 Depleted uranium (any uranium designed components and accessories containing precursor fibers into alumina containing less than 0.711% of the isotope therefor. fibers by heat treatment; U±235) in shipments of more than 1,000 e. Equipment for producing prepregs kilograms in the form of shielding License Requirements controlled by 1C010.e by the hot melt contained in X-ray units, radiographic Reason for Control: NS, MT, NP, AT method; exposure or teletherapy devices, f. Non-destructive inspection equipment radioactive thermoelectric generators, or Control(s) Country Chart capable of inspecting defects three packaging for the transportation of dimensionally, using ultrasonic or X-ray radioactive materials. NS applies to entire entry NS Column 2 tomography and specially designed for License Requirements MT applies to entire MT Column 1 ‘‘composite’’ materials. entry, except 1B001.d.4 Reason for Control: NP, AT and .f. 1B002 Systems and components therefor, NP applies to filament NP Column 1 specially designed to avoid contamination Control(s) Country Chart winding machines de- and specially designed for producing metal scribed in 1B001.a that alloys, metal alloy powder or alloyed NP applies to entire entry NP Column 2 materials controlled by 1C002.a.2, 1C002.b AT applies to entire entry AT Column 1 are capable of winding cylindrical rotors having or 1C002.c. License Exceptions a diameter between 75 License Requirements LVS: N/A mm (3 in) and 400 mm Reason for Control: NS, AT GBS: N/A (16 in) and lengths of CIV: N/A 600 mm (24 in) or great- Control(s) Country Chart List of Items Controlled er; and coordinating and Unit: Kilograms programming controls NS applies to entire entry NS Column 2 Related Controls: (1) This entry does not and precision mandrels AT applies to entire entry AT Column 1 for these filament wind- control depleted uranium in fabricated License Exceptions forms for use in munitions. See 22 CFR ing machines. AT applies to entire entry AT Column 1 LVS: $5000 part 121 for depleted uranium subject to GBS: N/A the export licensing authority of the U.S. License Exceptions CIV: N/A Department of State, Office of Defense LVS: N/A for MT and for 1B001.a; $5,000 for List of Items Controlled Trade Controls. (2) Depleted uranium that all other items is not fabricated for use in munitions or Unit: $ value GBS: N/A Related Controls: N/A fabricated into commodities solely to take CIV: N/A advantage of its high density (e.g., aircraft, Related Definitions: N/A ship, or other counterweights) or in the List of Items Controlled Items: The list of items controlled is forms listed in this entry are subject to the Unit: $ value contained in the ECCN heading export licensing authority of the Nuclear Related Controls: See also 1B101 and 1B201; Regulatory Commission. (See 10 CFR part and for accelerators and systems 1B003 Tools, dies, molds or fixtures, for 110.) (3) See also 0C001 containing accelerators see 3A101 ``superplastic forming'' or ``diffusion Related Definitions: N/A Related Definitions: N/A bonding'' titanium or aluminum or their Items: The list of items controlled is Items: a. Filament winding machines of alloys, specially designed for the contained in the ECCN heading which the motions for positioning, wrapping manufacture of (see List of Items and winding fibers are coordinated and Controlled). 1A984 Chemical agents, including tear gas programmed in three or more axes, specially License Requirements formulation containing 1 percent or less of designed for the manufacture of ‘‘composite’’ Reason for Control: NS, AT orthochlorobenzalmalononitrile (CS), or 1 structures or laminates from ‘‘fibrous or percent or less of chloroacetophenone filamentary materials’’; Control(s) Country Chart (CN), except in individual containers with a b. Tape-laying or tow-placement machines net weight of 20 grams or less; smoke of which the motions for positioning and NS applies to entire entry NS Column 2 bombs; non-irritant smoke flares, canisters, laying tape, tows or sheets are coordinated AT applies to entire entry AT Column 1 grenades and charges; other pyrotechnic and programmed in two or more axes, articles having dual military and specially designed for the manufacture of License Exceptions commercial use; and fingerprinting ‘‘composite’’ airframe or ‘‘missile’’ structures; LVS: $5000 powders, dyes and inks. c. Multidirectional, multidimensional GBS: N/A License Requirements weaving machines or interlacing machines, CIV: N/A including adapters and modification kits, for Reason for Control: CC List of Items Controlled weaving, interlacing or braiding fibers to Unit: Equipment in number; components in manufacture ‘‘composite’’ structures; Control(s) Country Chart $ value Note: 1B001.c does not control textile Related Controls: For specially designed CC applies to entire entry CC Column 1 machinery not modified for the above end- production equipment of systems, sub- uses. License Exceptions systems and components controlled by d. Equipment specially designed or 9A005 to 9A009, 9A011, 9A101, 9A105 to LVS: N/A adapted for the production of reinforcement 9A109, 9A111, and 9A116 to 9A120 usable GBS: N/A fibers, as follows: in ‘‘missiles’’, see 9B115. CIV: N/A d.1. Equipment for converting polymeric Related Definitions: N/A List of Items Controlled fibers (such as polyacrylonitrile, rayon, pitch Items: a. Airframe or aerospace structures; Unit: $ value or polycarbosilane) into carbon fibers or b. ‘‘Aircraft’’ or aerospace engines; or

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c. Specially designed components for those sintering or bonding of composite equipment for the ‘‘production’’, handling structures or engines. structures, laminates and manufactures and acceptance testing of boron carbide thereof Related Definitions: N/A. 1B018 Equipment on the International Items: a. Filament winding machines of Items: The list of items controlled is Munitions List. which the motions for positioning, wrapping contained in the ECCN heading License Requirements and winding fibers can be coordinated and programmed in three or more axes, designed 1B116 Specially designed nozzles for Reason for Control: NS, MT, RS, AT producing pyrolitically derived materials to fabricate composite structures or laminates formed on a mold, mandrel or other from fibrous or filamentary materials, and Control(s) Country Chart substrate from precursor gases which coordinating and programming controls; decompose in the 1,573 K (1,300 ≥C) to b. Tape-laying machines of which the NS applies to entire entry NS Column 1 3,173 K (2,900 ≥C) temperature range at motions for positioning and laying tape and MT applies to equipment MT Column 1 pressures of 130 Pa to 20 kPa. for the ‘‘production’’ of sheets can be coordinated and programmed rocket propellants. in two or more axes, designed for the License Requirements RS applies to 1B018.a ...... RS Column 2 manufacture of composite airframe and Reason for Control: MT, AT AT applies to entire entry AT Column 1 ‘‘missile’’ structures; License Exceptions c. Equipment designed or modified for the Control(s) Country Chart ‘‘production’’ of ‘‘fibrous or filamentary LVS: $3000 for 1B018.a for countries materials’’ as follows: MT applies to entire entry MT Column 1 WITHOUT an ‘‘X’’ in RS; Column 2 on the c.1. Equipment for converting polymeric AT applies to entire entry AT Column 1 Country Chart contained in Supplement fibers (such as polyacrylonitrile, rayon or License Exceptions No. 1 to part 738 of the EAR; $5000 for polycarbosilane) including special provision LVS: N/A 1B018.b to strain the fiber during heating; GBS: N/A GBS: N/A c.2. Equipment for the vapor deposition of CIV: N/A CIV: N/A elements or compounds on heated filament List of Items Controlled substrates; and List of Items Controlled Unit: Equipment in number; parts and c.3. Equipment for the wet-spinning of Unit: Equipment in number accessories in $ value refractory ceramics (such as aluminum Related Controls: N/A Related Controls: N/A oxide); Related Definitions: N/A Related Definitions: N/A d. Equipment designed or modified for Items: The list of items controlled is Items: a. Equipment for the ‘‘production’’ of special fiber surface treatment or for contained in the ECCN heading military explosives and solid propellants. producing prepregs and preforms controlled 1B201 Filament winding machines, other a.1. Complete installations; by 9A110. than those controlled by 1B001 or 1B101, in a.2. Specialized components (for example, Note: Equipment covered in 1B101.d which the motions for positioning, dehydration presses; extrusion presses for the includes but is not limited to, rollers, tension wrapping, and winding fibers are extrusion of small arms, cannon and rocket stretchers, coating equipment, cutting coordinated and programmed in two or propellants; cutting machines for the sizing equipment and clicker dies. more axes, specially designed to fabricate of extruded propellants; sweetie barrels composite structures or laminates from (tumblers) 6 feet and over in diameter and 1B115 Equipment for the ``production'', ``fibrous or filamentary materials'' and having over 500 pounds product capacity; handling and acceptance testing of capable of winding cylindrical rotors of and continuous mixers for solid propellants); propellants or propellant constituents diameter between 75 mm and 400 mm and or controlled by 1C011, 1C111 or on the U.S. lengths of 600 mm or greater and a.3. Nitrators, continuous types; and Munitions List, and specially designed coordinating and programming controls a.4. Specially designed parts and components therefor. and precision mandrels therefor. accessories therefor. License Requirements b. Environmental chambers capable of License Requirements Reason for Control: MT, AT pressures below (10¥4) Torr, and specially Reason for Control: NP, AT designed components therefor. Control(s) Country Chart Control(s) Country Chart 1B101 Equipment, other than that MT applies to entire entry MT Column 1 controlled by 1B001, for the ``production'' of NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 structural composites, and specially AT applies to entire entry AT Column 1 designed components and accessories License Exceptions License Exceptions therefor. LVS: N/A LVS: N/A License Requirements GBS: N/A GBS: N/A Reason for Control: MT, NP, AT CIV: N/A CIV: N/A List of Items Controlled List of Items Controlled Control(s) Country Chart Unit: Equipment in number; components in Unit: $ value $ value Related Controls: N/A MT applies to entire entry MT Column 1 Related Controls: (1) The only batch or Related Definitions: N/A NP applies to 1B101.a NP Column 1 continuous mixers controlled by this entry Items: The list of items controlled is only. are those which have provision for mixing contained in the ECCN heading AT applies to entire entry AT Column 1 under vacuum in the range of zero to License Exceptions 13.326 kPa and with a temperature control 1B225 Electrolytic cells for fluorine capacity of the mixing chamber: (a) Batch production with a production capacity LVS: N/A mixers having a total volumetric capacity greater than 250 g of fluorine per hour. GBS: N/A of 110 liters or more and at least one CIV: N/A License Requirements mixing/kneeding shaft mounted off center; List of Items Controlled (b) Continuous mixers having two or more Reason for Control: NP, AT Unit: $ value mixing/kneeding shafts and capability to Related Controls: See also 1B201 open the mixing chamber. (2) For Control(s) Country Chart Related Definitions: Components and equipment specially designed for the accessories controlled by this entry include production of military propellants or NP applies to entire entry NP Column 1 molds, mandrels, dies, fixtures and tooling propellant consistuents, see the U.S. AT applies to entire entry AT Column 1 for the preform processing, curing, casting, Munitions List. (3) This entry does control License Exceptions

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LVS: N/A License Exceptions 1B230 Pumps circulating solutions of GBS: N/A LVS: N/A diluted or concentrated potassium amide CIV: N/A GBS: N/A catalyst in liquid ammonia (KNH2/NH3), with List of Items Controlled CIV: N/A all of the characteristics (see List of Items Controlled). Unit: $ value List of Items Controlled Related Controls: N/A Unit: $ value License Requirements Related Definitions: N/A Related Controls: Heavy water production Reason for Control: NP, AT Items: The list of items controlled is equipment is also subject to the export contained in the ECCN heading licensing authority of the Nuclear Control(s) Country Chart 1B226 Electromagnetic isotope Regulatory Commission. (See 10 CFR part 110.) NP applies to entire entry NP Column 1 separators, designed for or equipped with, AT applies to entire entry AT Column 1 single or multiple ion sources capable of Related Definitions: ‘‘Fine-grain stainless steels’’ in this entry are defined to be fine- providing a total ion beam current of 50 mA License Exceptions grain austenitic stainless steels with an or greater. LVS: N/A ASTM (or equivalent standard) grain size License Requirements GBS: N/A number of 5 or greater CIV: N/A Reason for Control: NP, AT Items: a. Designed to operate with internal temperatures of 35 K (¥238 °C) or less; List of Items Controlled Control(s) Country Chart b. Designed to operate at an internal Unit: $ value pressure of 0.5 to 5 MPa (5 to 50 Related Controls: Heavy water production NP applies to entire entry NP Column 1 atmospheres); equipment is also subject to the export AT applies to entire entry AT Column 1 c. Constructed of ‘‘fine-grain stainless licensing authority of the Nuclear Regulatory Commission. (See 10 CFR part License Exceptions steels’’ of the 300 series with low sulphur content or equivalent cryogenic and H2- 110.) LVS: N/A compatible materials; and Related Definitions: N/A GBS: N/A d. With internal diameters of 1 m or greater Items: a. Airtight (i.e., hermetically sealed); CIV: N/A and effective lengths of 5 m or greater. b. For concentrated potassium amide List of Items Controlled solutions (1% or greater), operating pressure Unit: $ value 1B229 Water-hydrogen sulphide exchange of 1.5–60 MPa (15–600 atmospheres); for Related Controls: This entry includes tray columns constructed from fine carbon dilute potassium amide solutions (less than separators capable of enriching stable steel with a diameter of 1.8 m or greater, 1%), operating pressure of 20–60 MPa (200– which can operate at a nominal pressure of 600 atmospheres); and isotopes and separators with the ion 3 sources and collections both in the 2 MPa or greater, and internal contactors c. A capacity greater than 8.5 m /hr. therefor. magnetic field and those configurations in 1B231 Tritium facilities, plant or which they are external to the field License Requirements equipment, as follows (see List of Items Related Definitions: N/A Reason for Control: NP, AT Controlled). Items: The list of items controlled is License Requirements contained in the ECCN heading Control(s) Country Chart Reason for Control: NP, AT 1B227 Ammonia synthesis converters or NP applies to entire entry NP Column 1 ammonia synthesis units in which the Control(s) Country Chart synthesis gas (nitrogen and hydrogen) is AT applies to entire entry AT Column 1 withdrawn from an ammonia/hydrogen License Exceptions NP applies to entire entry NP Column 1 high-pressure exchange column and the LVS: N/A AT applies to entire entry AT Column 1 synthesized ammonia is returned to that GBS: N/A License Exceptions column. CIV: N/A LVS: N/A License Requirements List of Items Controlled GBS: N/A Reason for Control: NP, AT Unit: $ value CIV: N/A Related Controls: (1) See 0B004 for columns List of Items Controlled Control(s) Country Chart which are specially designed or prepared Unit: $ value for the production of heavy water. These Related Controls: This entry does not control NP applies to entire entry NP Column 1 items are controlled on the NSG Trigger tritium, tritium compounds, and mixtures AT applies to entire entry AT Column 1 List (INFCIRC/254/part (2) See 10 CFR part containing tritium, or products or devices License Exceptions 110 for heavy water production equipment thereof. See 10 CFR part 110 for tritium subject to the export licensing authority of LVS: N/A subject to the export licensing authority of GBS: N/A the Nuclear Regulatory Commission the Nuclear Regulatory Commission CIV: N/A Related Definition: (1) This entry includes Related Definitions: N/A internal contactors of the columns are Items: a. Facilities or plant for the List of Items Controlled segmented trays with an effective production, recovery, extraction, Unit: $ value assembled diameter of 1.8 m (6 ft.) or concentration, or handling of tritium; Related Controls: N/A greater, are designed to facilitate b. Equipment for tritium facilities or plant, Related Definition: N/A countercurrent contacting and constructed as follows: Items: The list of items controlled is of materials resistant to corrosion by b.1. Hydrogen or helium refrigeration units contained in the ECCN heading. hydrogen sulfide/water mixtures. These capable of cooling to 23 K (¥250 C) or less, may be sieve trays, valve trays, bubble cap with heat removal capacity greater than 150 1B228 Hydrogen-cryogenic distillation trays or turbogrid trays. (2) Fine carbon watts; or columns having all of the characteristics steel in this entry is defined to be steel b.2. Hydrogen isotope storage and (see List of Items Controlled). with the austenitic ASTM (or equivalent purification systems using metal hydrides as License Requirements standard) grain size number of 5 or greater. the storage, or purification medium. Reason for Control: NP, AT (3) Materials resistant to corrosion by hydrogen sulfide/water mixtures in this 1B232 Turboexpanders or turboexpander- compressor sets designed for operation Control(s) Country Chart entry are defined to be stainless steels with a carbon content of 0.03% or less below 35 K (Ø238≥ C) and a throughput of NP applies to entire entry NP Column 1 Items: The list of items controlled is hydrogen gas of 1000 kg/hr or greater. AT applies to entire entry AT Column 1 contained in the ECCN heading License Requirements

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Reason for Control: NP, AT molds, including high pressure castings, b. Materials for absorbing frequencies sintered forms, and forms made by powder exceeding 1.5×1014 Hz but less than 3.7×10 14 Control(s) Country Chart metallurgy. Hz and not transparent to visible light; The object of the control should not be c. Intrinsically conductive polymeric NP applies to entire entry NP Column 1 defeated by the export of non-listed forms materials with a bulk electrical conductivity AT applies to entire entry AT Column 1 alleged to be finished products but exceeding 10,000 S/m (Siemens per meter) or License Exceptions representing in reality crude forms or semi- a sheet (surface) resistivity of less than 100 fabricated forms. LVS: N/A ohms/square, based on any of the following polymers: GBS: N/A 1C001 Materials specially designed for CIV: N/A c.1. Polyaniline; use as absorbers of electromagnetic waves, c.2. Polypyrrole; List of Items Controlled or intrinsically conductive polymers, as c.3. Polythiophene; Unit: $ value follows (see List of Items Controlled). c.4. Poly phenylene-vinylene; or Related Controls: N/A License Requirements c.5. Poly thienylene-vinylene. Related Definitions: N/A Reason for Control: NS, MT, AT Items: The list of items controlled is Technical Note: Bulk electrical contained in the ECCN heading conductivity and sheet (surface) resistivity Control(s) Country Chart should be determined using ASTM D–257 or 1B233 Lithium isotope separation national equivalents. facilities, plant or equipment, as follows NS applies to entire entry NS Column 1 (see List of Items Controlled). MT applies to entire entry MT Column 1 1C002 Metal alloys, metal alloy powder AT applies to entire entry AT Column 1 and alloyed materials, as follows (see List License Requirements of Items Controlled). Reason for Control: License Exceptions Control(s): Items described in 1B233 are LVS: N/A License Requirements subject to the export licensing authority of GBS: N/A Reason for Control: NS, NP, AT the Nuclear Regulatory Commission (see 10 CIV: N/A CFR part 110) List of Items Controlled Control(s) Country Chart License Exceptions Unit: Kilograms NS applies to entire entry NS Column 2 LVS: N/A Related Controls: See also 1C101 NP applies to 1C002.a.2.c NP Column 1 GBS: N/A Related Definitions: N/A or a.2.d if they exceed CIV: N/A Items: a. Materials for absorbing frequencies the parameters stated in × 8 × 12 List of Items Controlled exceeding 2 10 Hz but less than 3 10 Hz. 1C202. Unit: N/A Notes: 1. 1C001.a does not control: AT applies to entire entry AT Column 1 Related Controls: N/A a. Hair type absorbers, constructed of License Exceptions Related Definitions: N/A natural or synthetic fibers, with non- Items: a. Facilities or plant for the separation magnetic loading to provide absorption; LVS: $3000 of lithium isotopes; b. Absorbers having no magnetic loss and GBS: N/A b. Equipment for the separation of lithium whose incident surface is non-planar in CIV: N/A isotopes, as follows: shape, including pyramids, cones, wedges List of Items Controlled b.1. Packed liquid-liquid exchange and convoluted surfaces; Unit: Kilograms columns specially designed for lithium c. Planar absorbers, having all of the Related Controls: See also 1C202. This entry amalgams; following characteristics: does not control metal alloys, metal alloy b.2. Mercury and/or lithium amalgam 1. Made from any of the following: powder or alloyed materials for coating pumps; a. Plastic foam materials (flexible or non- substrates b.3. Lithium amalgam electrolysis cells; flexible) with carbon-loading, or organic Related Definition: N/A b.4. Evaporators for concentrated lithium materials, including binders, providing more Items: a. Metal alloys, as follows: hydroxide solution. than 5% echo compared with metal over a ± a.1. Nickel or titanium-based alloys in the C. Materials bandwidth exceeding 15% of the center form of aluminides, as follows, in crude or frequency of the incident energy, and not semi-fabricated forms: Technical Note: Metals and alloys: Unless capable of withstanding temperatures provision to the contrary is made, the words ° a.1.a. Nickel aluminides containing a exceeding 450 K (177 C); or minimum of 15 weight percent aluminum, a ‘‘metals’’ and ‘‘alloys’’ in 1C001 to 1C012 b. Ceramic materials providing more than maximum of 38 weight percent aluminum cover crude and semi-fabricated forms, as 20% echo compared with metal over a and at least one additional alloying element; follows: bandwidth exceeding ±15% of the center a.1.b. Titanium aluminides containing 10 Crude forms: Anodes, balls, bars (including frequency of the incident energy, and not weight percent or more aluminum and at notched bars and wire bars), billets, blocks, capable of withstanding temperatures least one additional alloying element; blooms, brickets, cakes, cathodes, crystals, exceeding 800 K (527° C); cubes, dice, grains, granules, ingots, lumps, a. 2. Metal alloys, as follows, made from Technical Note: Absorption test samples pellets, pigs, powder, rondelles, shot, slabs, metal alloy powder or particulate material for 1C001.a. Note 1.c.1 should be a square at slugs, sponge, sticks; controlled by 1C002.b: least 5 wavelengths of the center frequency Semi-fabricated forms (whether or not a.2.a. Nickel alloys with: on a side and positioned in the far field of coated, plated, drilled or punched): a.2.a.1. A stress-rupture life of 10,000 the radiating element. a. Wrought or worked materials fabricated hours or longer at 923 K (650° C) at a stress × 6 2 by rolling, drawing, extruding, forging, 2. Tensile strength less than 7 10 N/m ; of 676 MPa; or impact extruding, pressing, graining, and a.2.a.2. A low cycle fatigue life of 10,000 × 6 atomizing, and grinding, i.e.: angles, 3. Compressive strength less than 14 10 cycles or more at 823 K (550° C) at a channels, circles, discs, dust, flakes, foils and N/m2; maximum stress of 1,095 MPa; leaf, forging, plate, powder, pressings and d. Planar absorbers made of sintered ferrite, a.2.b. Niobium alloys with: stampings, ribbons, rings, rods (including having: a.2.b.1. A stress-rupture life of 10,000 bare welding rods, wire rods, and rolled 1. A specific gravity exceeding 4.4; and hours or longer at 1,073 K (800° C) at a stress wire), sections, shapes, sheets, strip, pipe and 2. A maximum operating temperature of of 400 MPa; or ° tubes (including tube rounds, squares, and 548 K (275 C). a.2.b.2. A low cycle fatigue life of 10,000 hollows), drawn or extruded wire; Note 2: Nothing in 1C001.a releases cycles or more at 973 K (700° C) at a b. Cast material produced by casting in magnetic materials to provide absorption maximum stress of 700 MPa; sand, die, metal, plaster or other types of when contained in paint. a.2.c. Titanium alloys with:

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a.2.c.1. A stress-rupture life of 10,000 1C003 Magnetic metals, of all types and of 1C005 ``Superconductive'' ``composite'' hours or longer at 723 K (450° C) at a stress whatever form, having any of the conductors in lengths exceeding 100 m or of 200 MPa; or characteristics (see List of Items with a mass exceeding 100 g, as follows a.2.c.2. A low cycle fatigue life of 10,000 Controlled). (see List of Items Controlled). ° cycles or more at 723 K (450 C) at a License Requirements License Requirements maximum stress of 400 MPa; Reason for Control: NS, AT Reason for Control: NS, AT a.2.d. Aluminum alloys with a tensile strength of: Control(s) Country Chart Control(s) Country Chart a.2.d.1. 240 MPa or more at 473 K (200° C); or NS applies to entire entry NS Column 2 ° NS applies to entire entry NS Column 2 a.2.d.2. 415 MPa or more at 298 K (25 C); AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 a.2.e. Magnesium alloys with a tensile strength of 345 MPa or more and a corrosion License Exceptions License Exceptions rate of less than 1 mm/year in 3% sodium LVS: $3000 LVS: $1500 chloride aqueous solution measured in GBS: N/A GBS: N/A accordance with ASTM standard G–31 or CIV: N/A CIV: N/A national equivalents; List of Items Controlled List of Items Controlled Technical Note 1: The metal alloys in Unit: Kilograms Unit: Kilograms 1C002.a are those containing a higher Related Controls: N/A Related Controls: N/A percentage by weight of the stated metal than Related Definitions: N/A Related Definitions: N/A Items: a. Initial relative permeability of of any other element. Items: a. Multifilamentary ‘‘superconductive’’ 120,000 or more and a thickness of 0.05 mm Technical Note 2: Stress-rupture life ‘‘composite’’ conductors containing one or or less; should be measured in accordance with more niobium-titanium filaments: ASTM standard E–139 or national Technical Note: Measurement of initial a.1. Embedded in a ‘‘matrix’’ other than a equivalents. permeability must be performed on fully copper or copper-based mixed ‘‘matrix’’; or Technical Note 3: Low cycle fatigue life annealed materials. a.2. Having a cross-section area less than should be measured in accordance with b. Magnetostrictive alloys, having any of 0.28 × 10¥4 mm2 (6 µm in diameter for ASTM Standard E–606 ‘‘Recommended the following characteristics: circular filaments); Practice for Constant-Amplitude Low-Cycle b.1. A saturation magnetostriction of more b. ‘‘Superconductive’’ ‘‘composite’’ × ¥4 Fatigue Testing’’ or national equivalents. than 5 10 ; or conductors consisting of one or more Testing should be axial with an average stress b.2. A magnetomechanical coupling factor ‘‘superconductive’’ filaments other than ratio equal to 1 and a stress-concentration (k) of more than 0.8; or niobium-titanium, having all of the factor (Kt) equal to 1. The average stress is c. Amorphous or nanocrystalline alloy following: defined as maximum stress minus minimum strips, having all of the following b.1. A ‘‘critical temperature’’ at zero stress divided by maximum stress. characteristics: magnetic induction exceeding 9.85 K b. Metal alloy powder or particulate c.1. A composition having a minimum of (¥263.31° C) but less than 24 K (¥249.16° material for materials controlled by 1C002.a, 75 weight percent of iron, cobalt or nickel; C); c.2. A saturation magnetic induction (Bs) of as follows: b.2. A cross-section area less than 0.28 × 1.6 T or more; and b.1. Made from any of the following 10¥4 mm2; and c.3. Any of the following: composition systems: b.3. Remaining in the ‘‘superconductive’’ c.3.a. A strip thickness of 0.02 mm or less; state at a temperature of 4.2 K (¥268.96° C) Technical Note: X in the following equals or when exposed to a magnetic field one or more alloying elements. c.3.b. An electrical resistivity of 2 × 10 ¥4; corresponding to a magnetic induction of 12 b.1.a. Nickel alloys (Ni-Al-X, Ni-X-Al) ohm cm or more. T. qualified for turbine engine parts or Technical Note: Nanocrystalline materials components, i.e. with less than 3 non- in 1C003.c are those materials having a 1C006 Fluids and lubricating materials, as metallic particles (introduced during the crystal grain size of 50 nm or less, as follows (see List of Items Controlled). manufacturing process) larger than 100 µm in determined by X-ray diffraction. 109 alloy particles; License Requirements b.1.b. Niobium alloys (Nb-Al-X or Nb-X-Al, 1C004 Uranium titanium alloys or Reason for Control: NS, AT Nb-Si-X or Nb-X-Si, Nb-Ti-X or Nb-X-Ti); tungsten alloys with a ``matrix'' based on b.1.c. Titanium alloys (Ti-Al-X or Ti-X-Al); iron, nickel or copper, having all of the Control(s) Country Chart b.1.d. Aluminum alloys (Al-Mg-X or Al-X- characteristics (see List of Items Mg, Al-Zn-X or Al-X-Zn, Al-Fe-X or Al-X-Fe); Controlled). NS applies to entire entry NS Column 2 AT applies to entire entry AT Column 1 or License Requirements b.1.e. Magnesium alloys (Mg-Al-X or Mg-X- Reason for Control: NS, AT License Exceptions Al); and LVS: $3000 b.2. Made in a controlled environment by Control(s) Country Chart GBS: N/A any of the following processes: CIV: N/A b.2.a. ‘‘Vacuum atomization’’; NS applies to entire entry NS Column 2 List of Items Controlled b.2.b. ‘‘Gas atomization’’; AT applies to entire entry AT Column 1 b.2.c. ‘‘Rotary atomization’’; Unit: Barrels (55 U.S. gallons/ 209 liters) b.2.d. ‘‘Splat quenching’’; License Exceptions Related Controls: N/A b.2.e. ‘‘Melt spinning’’ and LVS: $3000 Related Definitions: N/A ‘‘comminution’’; GBS: N/A Items: a. Hydraulic fluids containing, as their b.2.f. ‘‘Melt extraction’’ and CIV: N/A principal ingredients, any of the following ‘‘comminution’’; or List of Items Controlled compounds or materials: a.1. Synthetic hydrocarbon oils or b.2.g. ‘‘Mechanical alloying’’; Unit: Kilograms silahydrocarbon oils, having all of the c. Alloyed materials, in the form of Related Controls: N/A following: uncomminuted flakes, ribbons or thin rods Related Definitions: N/A produced in a controlled environment by Items: a. A density exceeding 17.5 g/cm 3; Note: For the purpose of 1C006.a.1, ‘‘splat quenching’’, ‘‘melt spinning’’ or ‘‘melt b. An elastic limit exceeding 1,250 MPa; silahydrocarbon oils contain exclusively extraction’’, used in the manufacture of metal c. An ultimate tensile strength exceeding silicon, hydrogen and carbon. alloy powder or particulate material 1,270 Mpa; and a.1.a. A flash point exceeding 477 K (204° controlled by 1C002.b. d. An elongation exceeding 8%. C);

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a.1.b. A pour point at 239 K (¥34° C) or The specimen will be considered thermally e.1. Polydiorganosilanes (for producing less; stable if, on completion of the above silicon carbide); a.1.c. A viscosity index of 75 or more; and procedure, all of the following conditions are e.2. Polysilazanes (for producing silicon a.1.d. A thermal stability at 616 K (343° C); met: nitride); or 1. The loss in weight of each ball is less e.3. Polycarbosilazanes (for producing a.2. Chlorofluorocarbons, having all of the than 10 mg/mm2 of ball surface; ceramics with silicon, carbon and nitrogen following: 2. The change in original viscosity as components); ° Note: For the purpose of 1C006.a.2, determined at 311 K (38 C) is less than 25%; f. Ceramic-ceramic ‘‘composite’’ materials chlorofluorocarbons contain exclusively and with an oxide or glass ‘‘matrix’’ reinforced carbon, fluorine and chlorine. 3. The total acid or base number is less with continuous fibers from any of the than 0.40; a.2.a. No flash point; following systems: e. Autogenous ignition temperature is a.2.b. An autogenous ignition temperature f.1. Al2O3; or determined using the method described in exceeding 977 K (704° C); f.2. Si-C-N. ASTM E–659 or national equivalents. a.2.c. A pour point at 219 K (¥54° C) or Note: 1C007.f does not control less; 1C007 Ceramic base materials, non- ‘‘composites’’ containing fibers from these a.2.d. A viscosity index of 80 or more; and systems with a fiber tensile strength of less ``composite'' ceramic materials, ceramic- ° a.2.e. A boiling point at 473 K (200° C) or ``matrix'' ``composite'' materials and than 700 MPa at 1,273 K (1,000 C) or fiber higher; precursor materials, as follows (see List of tensile creep resistance of more than 1% b. Lubricating materials containing, as their Items Controlled). creep strain at 100 MPa load and 1,273 K principal ingredients, any of the following (1,000° C) for 100 hours. compounds or materials: License Requirements b.1. Phenylene or alkylphenylene ethers or Reason for Control: NS, MT, AT 1C008 Non-fluorinated polymeric thio-ethers, or their mixtures, containing substances, as follows (see List of Items more than two ether or thio-ether functions Control(s) Country Chart Controlled). or mixtures thereof; or License Requirements b.2. Fluorinated silicone fluids with a NS applies to entire entry NS Column 2. Reason for Control: NS, AT kinematic viscosity of less than 5,000 mm2/ MT applies to items in MT Column 1. ° 1C007.d and .f when the s (5,000 centistokes) measured at 298 K (25 Control(s) Country Chart C); dielectric constant is c. Damping or flotation fluids with a purity less than 6 at fre- NS applies to entire entry NS Column 2 exceeding 99.8%, containing less than 25 quencies from 100 Hz to AT applies to entire entry AT Column 1 particles of 200 µm or larger in size per 100 10,000 MHz for use in ml and made from at least 85% of any of the missile radomes. License Exceptions following compounds or materials: AT applies to entire entry AT Column 1. LVS: $200 c.1. Dibromotetrafluoroethane; License Requirement Notes: See § 743.1 of GBS: N/A c.2. Polychlorotrifluoroethylene (oily and the EAR for reporting requirements for CIV: N/A waxy modifications only); or exports under License Exceptions. List of Items Controlled c.3. Polybromotrifluoroethylene; License Exceptions Unit: Kilograms d. Fluorocarbon electronic cooling fluids, LVS: $5000, except N/A for MT and for Related Controls: N/A having all of the following characteristics: Related Definitions: N/A d.1. Containing 85% by weight or more of 1C007.e GBS: N/A Items: a. Non-fluorinated polymeric any of the following, or mixtures thereof: substances, as follows: d.1.a. Monomeric forms of CIV: N/A List of Items Controlled a.1. Bismaleimides; perfluoropolyalkylether-triazines or a.2. Aromatic polyamide-imides; perfluoroaliphatic-ethers; Unit: Kilograms a.3. Aromatic polyimides; d.1.b. Perfluoroalkylamines; Related Controls: See also 1C107 a.4. Aromatic polyetherimides having a d.1.c. Perfluorocycloalkanes; or Related Definitions: N/A glass transition temperature (Tg) exceeding d.1.d. Perfluoroalkanes; Items: a. Base materials of single or complex 513 K (240° C) determined using the dry d.2. Density at 298 K (25° C) of 1.5 g/ml borides of titanium having total metallic method described in ASTM D 3418; or more; impurities, excluding intentional additions, d.3. In a liquid state at 273 K (0° C); and of less than 5,000 ppm, an average particle Note: 1C008.a does not control non-fusible d.4. Containing 60% or more by weight of size equal to or less than 5 µm and no more compression molding powders or molded fluorine. than 10% of the particles larger than 10 µm; forms. Technical Note: For the purpose of 1C006: b. Non-‘‘composite’’ ceramic materials in b. Thermoplastic liquid crystal copolymers a. Flash point is determined using the crude or semi-fabricated form, composed of having a heat distortion temperature ° Cleveland Open Cup Method described in borides of titanium with a density of 98% or exceeding 523 K (250 C) measured according ASTM D–92 or national equivalents; more of the theoretical density; to ASTM D–648, method A, or national b. Pour point is determined using the Note: 1C007.b does not control abrasives. equivalents, with a load of 1.82 N/mm2 and method described in ASTM D–97 or national c. Ceramic-ceramic ‘‘composite’’ materials composed of: equivalents; with a glass or oxide-‘‘matrix’’ and reinforced b.1. Any of the following: c. Viscosity index is determined using the with fibers made from any of the following b.1.a. Phenylene, biphenylene or method described in ASTM D–2270 or systems: naphthalene; or national equivalents; c.1. Si-N; b.1.b. Methyl, tertiary-butyl or phenyl d. Thermal stability is determined by the c.2. Si-C; substituted phenylene, biphenylene or following test procedure or national c.3. Si-Al-O-N; or naphthalene; and equivalents: c.4. Si-O-N; having a ‘‘specific tensile b.2. Any of the following acids: Twenty ml of the fluid under test is placed strength’’ exceeding 12.7 x 103 m; b.2.a. Terephthalic acid; in a 46 ml type 317 stainless steel chamber d. Ceramic-ceramic ‘‘composite’’ materials, b.2.b. 6-hydroxy-2 naphthoic acid; or containing one each of 12.5 mm (nominal) with or without a continuous metallic phase, b.2.c. 4-hydroxybenzoic acid; diameter balls of M–10 tool steel, 52100 steel incorporating particles, whiskers or fibers, c. Polyarylene ether ketones, as follows: and naval bronze (60% Cu, 39% Zn, 0.75% where carbides or nitrides of silicon, c.1. Polyether ether ketone (PEEK) Sn); zirconium or boron form the ‘‘matrix’’; c.2. Polyether ketone ketone (PEKK); The chamber is purged with nitrogen, e. Precursor materials (i.e., special purpose c.3. Polyether ketone (PEK); sealed at atmospheric pressure and the polymeric or metallo-organic materials) for c.4. Polyether ketone ether ketone ketone temperature raised to and maintained at 644 producing any phase or phases of the (PEKEKK); ± 6 K (371 ± 6° C) for six hours; materials controlled by 1C007.c, as follows: d. Polyarylene ketones;

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e. Polyarylene sulphides, where the Related Definitions: (1) Specific modulus: e.2. Made from organic or carbon ‘‘fibrous arylene group is biphenylene, triphenylene Young’s modulus in pascals, equivalent to or filamentary materials’’: or combinations thereof; N/m2 divided by specific weight in N/m3, e.2.a. With a ‘‘specific tensile strength’’ f. Polybiphenylenethersulphone. measured at a temperature of (296±2) K exceeding 17.7x104 m; Technical Note: The glass transition ((23+2) C) and a relative humidity of e.2.b. With a ‘‘specific modulus’’ exceeding ± 10.15×106 m; temperature (Tg) for 1C008 materials is (50 5)%. (2) Specific tensile strength: e.2.c. Not controlled by 1C010.a or determined using the method described in ultimate tensile strength in pascals, 2 1C010.b; and ASTM D 3418 using the dry method. equivalent to N/m divided by specific weight in N/m3, measured at a temperature e.2.d. When impregnated with materials 1C009 Unprocessed fluorinated of (296±2) K ((23±2) C) and a relative controlled by 1C008 or 1C009.b, having a compounds, as follows (see List of Items ± glass transition temperature (Tg) exceeding humidity of (50 5)% ° Controlled). Items: a. Organic ‘‘fibrous or filamentary 383 K (110 C) or with phenolic or epoxy resins, having a glass transition temperature License Requirements materials’’, having all of the following: ° a.1. A specific modulus exceeding 12.7 x (Tg) equal to or exceeding 418 K (145 C). Reason for Control: NS, AT 106 m; and Notes: 1C010.e does not control: a.2. A specific tensile strength exceeding 1. Epoxy resin ‘‘matrix’’ impregnated Control(s) Country Chart 23.5 x 104 m; carbon ‘‘fibrous or filamentary materials’’ (prepregs) for the repair of aircraft structures NS applies to entire entry NS Column 2 Note: 1C010.a does not control or laminates, in which the size of individual AT applies to entire entry AT Column 1 polyethylene. sheets of prepreg does not exceed 50 cm × 90 b. Carbon ‘‘fibrous or filamentary License Exceptions cm; materials’’, having all of the following: 2. Prepregs when impregnated with LVS: $5000 b.1. A specific modulus exceeding 12.7 x phenolic or epoxy resins having a glass GBS: N/A 6 10 m; and transition temperature (Tg) less than 433 K CIV: N/A b.2. A specific tensile strength exceeding (160 °C) and a cure temperature lower than List of Items Controlled 23.5 x 104 m; the glass transition temperature. Unit: Kilograms Technical Note: Properties for materials Technical Note: The glass transition Related Controls: N/A described in 1C010.b should be determined temperature (Tg) for 1C010.e materials is Related Definitions: N/A using SACMA recommended methods SRM determined using the method described in Items: a. Copolymers of vinylidene fluoride 12 to 17, or national equivalent tow tests, ASTM D 3418 using the dry method. The having 75% or more beta crystalline such as Japanese Industrial Standard JIS–R– glass transition temperature for phenolic and structure without stretching; 7601, Paragraph 6.6.2, and based on lot epoxy resins is determined using the method b. Fluorinated polyimides containing 10% average. described in ASTM D 4065 at a frequency of by weight or more of combined fluorine; Note: 1C010.b does not control fabric made 1 Hz and a heating rate of 2 K per minute c. Fluorinated phosphazene elastomers from ‘‘fibrous or filamentary materials’’ for using the dry method. containing 30% by weight or more of the repair of aircraft structures or laminates, combined fluorine. 1C011 Metals and compounds, as follows in which the size of individual sheets does (see List of Items Controlled). not exceed 50 cm x 90 cm. 1C010 ``Fibrous or filamentary materials'' License Requirements c. Inorganic ‘‘fibrous or filamentary which may be used in organic ``matrix'', Reason for Control: NS, MT, AT metallic ``matrix'' or carbon ``matrix'' materials’’, having all of the following: ``composite'' structures or laminates, as c.1. A specific modulus exceeding 2.54 x 6 Control(s) Country Chart follows (see List of Items Controlled). 10 m; and c.2. A melting, softening, decomposition or License Requirements sublimation point exceeding 1,922 K (1,649 NS applies to entire entry NS Column 1 Reason for Control: NS, NP, AT °C) in an inert environment; MT applies to 1C011.a MT Column 1 and .b. Note: 1C010.c does not control: AT applies to entire entry AT Column 1 Control(s) Country Chart 1. Discontinuous, multiphase, polycrystalline alumina fibers in chopped License Exceptions NS applies to entire entry NS Column 2 fiber or random mat form, containing 3 LVS: N/A NP applies to 1C010.a NP Column 1 weight percent or more silica, with a specific GBS: N/A (aramid ‘‘fibrous or fila- modulus of less than 10×106 m; CIV: N/A mentary materials’’, .b 2. Molybdenum and molybdenum alloy List of Items Controlled (carbon ‘‘fibrous and fibers; Unit: N/A filamentary materials’’), 3. Boron fibers; and e.1 for ‘‘fibrous and Related Controls: (1) See also 1C111. (2) 4. Discontinuous ceramic fibers with a Items controlled by 1C011.a, and metal filamentary materials’’ melting, softening, decomposition or that meet or exceed the fuels in particle form, whether spherical, sublimation point lower than 2,043 K (1,770 atomized, spheroidal, flaked or ground, control criteria of ECCN °C) in an inert environment. 1C210. manufactured from material consisting of d. ‘‘Fibrous or filamentary materials’’: AT applies to entire entry AT Column 1 99 percent or more of items controlled by d.1. Composed of any of the following: 1C011.b. are subject to the export licensing License Requirement Notes: See § 743.1 of d.1.a. Polyetherimides controlled by authority of the U.S. Department of State, the EAR for reporting requirements for 1C008.a; or Office of Defense Trade Controls (see 22 exports under License Exceptions. d.1.b. Materials controlled by 1C008.b to CFR part 121) License Exceptions 1C008.f; or Related Definitions: N/A d.2. Composed of materials controlled by LVS: $1500, N/A for NP Items: a. Metals in particle sizes of less than 1C010.d.1.a or 1C010.d.1.b and µ GBS: N/A 60 m whether spherical, atomized, ‘‘commingled’’ with other fibers controlled CIV: N/A spheroidal, flaked or ground, manufactured by 1C010.a, 1C010.b or 1C010.c; from material consisting of 99% or more of List of Items Controlled e. Resin-impregnated or pitch-impregnated zirconium, magnesium and alloys of these; Unit: Kilograms fibers (prepregs), metal or carbon-coated N.B.: The metals or alloys listed in 1C011.a Related Controls: See also 1C210, 1C990, and fibers (preforms) or ‘‘carbon fiber preforms’’, are controlled whether or not the metals or 9A110 for material not controlled by as follows: alloys are encapsulated in aluminum, 1C010.e, as defined by technical notes 1 or e.1. Made from ‘‘fibrous or filamentary magnesium, zirconium or beryllium. 2. Note that some items in 1C010.e are also materials’’ controlled by 1C010.a, 1C010.b or b. Boron or boron carbide of 85% purity or controlled under 9A110 1C010.c; higher and a particle size of 60 µm or less;

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N.B.: The metals or alloys listed in 1C011.b o. Charges specially designed for civilian Control(s) Country Chart are controlled whether or not the metals or applications, containing military explosives, alloys are encapsulated in aluminum, except those items described in 1C992. MT applies to entire entry MT Column 1 magnesium, zirconium or beryllium. Technical Note: Military high explosives AT applies to entire entry AT Column 1 c. Guanidine nitrate. are solid, liquid or gaseous substances or License Exceptions mixtures of substances that, in their 1C012 Materials for nuclear heat sources, application as primary, booster, or main LVS: N/A as follows (see List of Items Controlled). charges in warheads, demolition and other GBS: N/A CIV: N/A License Requirements military applications, are required to List of Items Controlled Reason for Control: detonate. Control(s): Items described in 1C012 are Advisory Note: Licenses are likely to be Unit: Kilograms subject to the export licensing authority of approved for export and reexport to Related Controls: N/A the Nuclear Regulatory Commission (see 10 satisfactory end-users in Country Group D:1 Related Definitions: N/A CFR part 110) of certain explosive substances and mixtures Items: a. Fine grain recrystallized bulk in reasonable quantities for civilian or graphites having a bulk density of 1.72 g/cm3 License Exceptions industrial purposes when made into or greater, measured at 288 K (15° C), and LVS: N/A cartridges or charges of an exclusively having a particle size of 100 micrometers or GBS: N/A civilian or industrial nature, such as less, pyrolytic or fibrous reinforced graphites, CIV: N/A propellants for sporting purposes or shooting usable for rocket nozzles and reentry vehicle List of Items Controlled gallery practice; cartridges for riveting guns; nose tips; b. Ceramic composite materials (dielectric Unit: N/A and explosive charges for agricultural constant less than 6 at frequencies from 100 Related Controls: N/A purposes, public works, mines, quarries or Hz to 10,000 MHz), also usable for ‘‘missile’’ Related Definitions: N/A oil-well drilling. The following are the radomes, and bulk machinable silicon- Items: a. Plutonium in any form with a substances or mixtures to which this procedure applies: carbide reinforced unfired ceramic, usable for plutonium isotopic assay of plutonium-238 nose tips. of more than 50% by weight; a. Nitrate-based (40 percent or more) and provided they do not contain more than 40 1C111 Propellants and constituent Note: 1C012.a does not control: percent nitroglycol/nitroglycerin or no more chemicals for propellants, other than those 1. Shipments with a plutonium content of than 16 percent TNT; controlled by 1C011, as follows (see List of 1 g or less; b. Nitrocellulose with a nitrogen content of Items Controlled). 2. Shipments of 3 effective grams or less over 12.2 percent; when contained in a sensing component in c. Nitroglycerin; License Requirements instruments. d. Single base nitrocellulose; Reason for Control: MT, AT b. Previously separated neptunium-237 in e. Sodium azide and other inorganic any form. azides. Control(s) Country Chart Note: 1C012.b does not control shipments with a neptunium-237 content of 1 g or less. 1C101 Materials and devices for reduced MT applies to entire entry MT Column 1 observables such as radar reflectivity, AT applies to entire entry AT Column 1 1C018 Materials on the International ultraviolet/infrared signatures and acoustic License Exceptions Munitions List. signatures, other than those controlled by 1C001, usable in ``missiles'' and their LVS: N/A License Requirements subsystems. GBS: N/A Reason for Control: NS, AT CIV: N/A License Requirements List of Items Controlled Control(s) Country Chart Reason for Control: MT, AT Unit: Kilograms Related Controls: The following materials, NS applies to entire entry NS Column 1 Control(s) Country Chart whether or not encapsulated in aluminum, AT applies to entire entry AT Column 1 MT applies to entire entry MT Column 1 beryllium, magnesium, or zirconium are License Exceptions AT applies to entire entry AT Column 1 subject to the export licensing authority of LVS: $3000 the U.S. Department of State, Office of License Exceptions GBS: Yes for items listed in Advisory Note Defense Trade Controls: (See 22 CFR part to 1C018 LVS: N/A 121): (a) Spherical aluminum powder with × ¥6 CIV: N/A GBS: N/A particles of uniform diameter 60 10 m CIV: N/A (60 micrometers) or less and an aluminum List of Items Controlled List of Items Controlled content of 97 percent or greater; (b) Metals Unit: Kilograms in particle sizes less than 60 × 10¥6 m (60 Unit: Kilograms Related Controls: N/A microns), whether spherical, atomized, Related Controls: Materials controlled by this Related Definitions: N/A spheroidal, flaked or ground, manufactured entry include: (a) structural materials and Items: a. Ethyl and Methyl centralites. from material consisting of 99 percent or coatings specially designed for reduced b. NN-Diphenylurea (unsymmetrical more of: boron; magnesium; zirconium; radar reflectivity; (b) coatings, including diphenylurea). alloys of boron, magnesium or zirconium; paints, specially designed for reduced or c. Methyl-NN-diphenylurea (methyl beryllium; or iron powder with average tailored reflectivity or emissivity in the unsymmetrical diphenylurea). particle size of 3×10¥6 m (3 microns) or microwave, infrared or ultraviolet spectra. d. Ethyl-NN-diphenylurea (ethyl less produced by hydrogen reduction of This entry does not control coatings when unsymmetrical diphenylurea). iron oxide. e. Ethyl phenyl urethane. specially used for the thermal control of Related Definitions: N/A f. Diphenyl urethane. satellites. Items: a. Propulsive substances: g. Diortho tolyl-urethane. Related Definitions: N/A a.1. Spherical aluminum powder, other h. 2-Nitrodiphenylamine. Items: The list of items controlled is than that specified on the U.S. Munitions i. p-Nitromethylaniline. contained in the ECCN heading List, with particles of uniform diameter of j. 2,2′ Dinitropropanol. less than 500 micrometer and an aluminum ′ 1C107 Graphite and ceramic materials, k. Bis(2,2 dinitropropyl) formal and acetal. other than those controlled by 1C007, as content of 97% by weight or greater; l. 3-Nitraza-1,5 pentane diisocyanate. follows (see List of Items Controlled). a.2. Metals, other than that controlled by m. Guanidine nitrate. the U.S. Munitions List, in particle sizes of n. Hydrogen peroxide in concentrations of License Requirements less than 500 micrometers, whether 85%. Reason for Control: MT, AT. spherical, atomized, spheroidal, flaked or

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Dinitrogen trioxide; List of Items Controlled Unit: Kilograms Tape is a material constructed of interlaced a.3.b. Nitrogen dioxide/dinitrogen or unidirectional filaments, strands, tetroxide; Related Controls: N/A Related Definitions: N/A rovings, tows or yarns, etc., usually a.3.c. Dinitrogen pentoxide; preimpregnated with resin. b. Polymeric substances: Items: The list of items controlled is contained in the ECCN heading. Specific modulus is the Young’s modulus in b.1. Carboxy-terminated polybutadiene N/m2 divided by the specific weight in N/ (CTPB); 1C202 Alloys, other than those controlled m3, measured at a temperature of 23 ± 2 °C ± b.2. Hydroxy-terminated polybutadiene by 1C002.a.2.c or .d, as follows (see List of and a relative humidity of 50 5 percent. (HTPB), other than that controlled by the Items Controlled). Specific tensile strength is the ultimate U.S. Munitions List; tensile strength in N/m2 divided by License Requirements b.3. Polybutadiene-acrylic acid (PBAA); specific weight in N/m3, measured at a Reason for Control: NP, AT temperature of 23 ± 2 °C and a relative b.4. Polybutadiene-acrylic acid- ± acrylonitrile (PBAN); humidity of 50 5 percent. c. Other propellant additives and agents: Control(s) Country Chart Items: a. Carbon or aramid ‘‘fibrous or filamentary materials’’ having a ‘‘specific c.1. Butacene; NP applies to entire entry NP Column 1 modulus’’ of 12.7 x 106 m or greater or a c.2. Triethylene glycol dinitrate (TEGDN); AT applies to entire entry AT Column 1 ‘‘specific tensile strength’’ of 235 x 103 m or c.3. 2-Nitrodiphenylamine; License Exceptions greater except Aramid ‘‘fibrous or filamentary c.4. Trimethylolethane trinitrate (TMETN); materials’’ having 0.25 percent or more by c.5. Diethylene glycol dinitrate (DEGDN). LVS: N/A weight of an ester based fibre surface Note: For propellants and constituent GBS: N/A modifier; chemicals for propellants not controlled by CIV: N/A b. Glass ‘‘fibrous or filamentary materials’’ 1C111, see the U.S. Munitions List. List of Items Controlled having a ‘‘specific modulus’’ of 3.18 x 106 m Unit: $ value or greater and a ‘‘specific tensile strength’’ of 1C116 Maraging steels (steels generally Related Controls: N/A 76.2 x 103 m or greater; or characterized by high nickel, very low Related Definition: The phrase ‘‘alloys c. Thermoset resin impregnated continuous carbon content and the use of capable of’’ encompasses before and after ‘‘yarns’’, ‘‘rovings’’, ‘‘tows’’ or ‘‘tapes’’ with a substitutional elements or precipitates to heat treatment. width no greater than 15 mm (prepregs), produce age-hardening) having an ultimate Items: a. Aluminum ‘‘alloys capable of’’ an made from carbon or glass ‘‘fibrous or tensile strength of 1,500 MPa or greater, ultimate tensile strength of 460 Mpa or filamentary materials’’ controlled by 1C210.a measured at 293 K (20≥ C), in the form of more at 293 K (20° C), in the form of tubes or .b. sheet, plate or tubing with a wall or plate or cylindrical solid forms (including Technical Note: The resin forms the matrix thickness equal to or less than 5 mm. forgings) with an outside diameter of more of the composite. License Requirements than 75 mm; 1C216 Maraging steel, other than that Reason for Control: MT, NP, AT b. Titanium ‘‘alloys capable of’’ an ultimate tensile strength of 900 MPa or more at 293 controlled by 1C116, capable of an ultimate K (20° C) in the form of tubes or cylindrical tensile strength of 2,050 MPa or more, at Control(s) Country Chart solid forms (including forgings) with an 293 K (20≥ C), except forms in which no linear dimension exceeds 75 mm. MT applies to entire entry MT Column 1 outside diameter of more than 75 mm. License Requirements NP applies to items that NP Column 1 1C210 ``Fibrous or filamentary materials'' Reason for Control: NP, MT, AT meet or exceed the pa- or prepregs, other than those controlled by rameters of 1C216. 1C010.a, .b or .e, as follows (see List of Control(s) Country Chart AT applies to entire entry AT Column 1 Items Controlled). License Exceptions License Requirements NP applies to entire entry NP Column 1 LVS: N/A Reason for Control: NP, AT AT applies to entire entry AT Column 1 GBS: N/A License Exceptions CIV: N/A Control(s) Country Chart LVS: N/A List of Items Controlled GBS: N/A NP applies to entire entry NP Column 1 Unit: $ value CIV: N/A AT applies to entire entry AT Column 1 Related Controls: See also 1C216 List of Items Controlled Related Definitions: N/A License Exceptions Unit: $ value Items: The list of items controlled is LVS: N/A Related Controls: N/A contained in the ECCN heading. GBS: N/A Related Definition: The phrase ‘‘maraging CIV: N/A steel capable of’’ encompasses maraging 1C117 Tungsten, molybdenum and alloys List of Items Controlled steel before or after heat treatment. of these metals in the form of uniform, Unit: Kilograms Items: The list of items controlled is spherical or atomized particles of 500 contained in the ECCN heading. micrometer diameter or less with a purity of Related Controls: See 9A110 for fiber 97% or greater for fabrication of rocket prepregs. 1C225 Boron and boron compounds, motor components, i.e., heat shields, nozzle Related Definitions: For the purpose of this mixtures and loaded materials in which the substrates, nozzle throats and thrust vector entry, the term ‘‘fibrous or filamentary boron-10 isotope is more than 20% by control surfaces. materials’’ is restricted to continuous weight of the total boron content. ‘‘monofilaments’’, ‘‘yarns’’, ‘‘rovings’’, License Requirements ‘‘tows’’ or ‘‘tapes’’. License Requirements Reason for Control: MT, AT Definitions for other terms used in this entry: Reason for Control: NP, AT

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Control(s) Country Chart Control(s) Country Chart 1C231 Hafnium metal, alloys and compounds of hafnium containing more NP applies to entire entry NP Column 1 NP applies to entire entry NP Column 1 than 60% hafnium by weight and AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 manufactures thereof. License Exceptions License Exceptions License Requirements Reason for Control: NP, AT LVS: N/A LVS: N/A GBS: N/A GBS: N/A CIV: N/A Control(s) Country Chart CIV: N/A List of Items Controlled List of Items Controlled NP applies to entire entry NP Column 1 Unit: Kilograms AT applies to entire entry AT Column 1 Related Controls: N/A Unit: Kilograms Related Definitions: N/A Related Controls: N/A License Exceptions Items: The list of items controlled is Related Definitions: N/A LVS: N/A contained in the ECCN heading. Items: The list of items controlled is GBS: N/A contained in the ECCN heading. CIV: N/A 1C226 Parts made of tungsten, tungsten carbide, or tungsten alloys (greater than 1C229 High purity (99.99% or greater) List of Items Controlled 90% tungsten) having a mass greater than bismuth with very low silver content (less Unit: Kilograms 20 kg and a hollow cylindrical symmetry than 10 parts per million). Related Controsl: N/A (including cylinder segments) with an License Requirements Related Definitions: N/A inside diameter greater than 100 mm but Items: The list of items controlled is less than 300 mm, except parts specially Reason for Control: NP, AT contained in the ECCN heading. designed for use as weights or gamma-ray collimators. Control(s) Country Chart 1C232 Helium-3 or helium isotopically enriched in the helium-3 isotope, mixtures License Requirements NP applies to entire entry NP Column 1 containing helium-3, or products or devices Reason for Control: NP, AT AT applies to entire entry AT Column 1 containing any of the foregoing, except a product or device containing less than 1 g License Exceptions Control(s) Country Chart of helium-3. LVS: N/A License Requirements NP applies to entire entry NP Column 1 GBS: N/A AT applies to entire entry AT Column 1 CIV: N/A Reason for Control: NP, AT License Exceptions List of Items Controlled Control(s) Country Chart LVS: N/A Unit: Kilograms GBS: N/A Related Controls: N/A NP applies to entire entry NP Column 1 CIV: N/A Related Definitions: N/A AT applies to entire entry AT Column 1 List of Items Controlled Items: The list of items controlled is License Exceptions Unit: Kilograms contained in the ECCN heading. LVS: N/A Related Controls: N/A GBS: N/A Related Definitions: N/A 1C230 Beryllium metal, alloys containing CIV: N/A Items: The list of items controlled is more than 50% of beryllium by weight, contained in the ECCN heading. beryllium compounds, or manufactures List of Items Controlled thereof, including waste and scrap Unit: Liters 1C227 Calcium (high purity) containing containing beryllium metal, alloys, or Related Controls: N/A both less than 1,000 parts per million by compounds. Related Definitions: N/A weight of metallic impurities other than License Requirements Items: The list of items controlled is magnesium and less than 10 parts per contained in the ECCN heading. million of boron. Reason for Control: NP, AT License Requirements 1C233 Lithium enriched in the 6 isotope Control(s) Country Chart (6Li) to greater than 7.5 atom percent, Reason for Control: NP, AT alloys, compounds or mixtures containing NP applies to entire entry NP Column 1 lithium enriched in the 6 isotope, or Control(s) Country Chart AT applies to entire entry AT Column 1 products or devices containing any of the NP applies to entire entry NP Column 1 License Exceptions foregoing except thermoluminescent dosimeters. AT applies to entire entry AT Column 1 LVS: N/A License Exceptions GBS: N/A License Requirements CIV: N/A LVS: N/A Reason for Control: NP, AT GBS: N/A List of Items Controlled CIV: N/A Unit: Kilograms Control(s) Country Chart List of Items Controlled Related Controls: (1) This entry includes Unit: Kilograms waste and scrap containing beryllium NP applies to entire entry NP Column 1 Related Controls: N/A metal, alloys, or compounds. (2) This entry AT applies to entire entry AT Column 1 Related Definitions: N/A does not control: (a) Metal windows for X- License Exceptions Items: The list of items controlled is ray machines, or for bore-hole logging contained in the ECCN heading. devices; (b) Oxide shapes in fabricated or LVS: N/A semi-fabricated forms specially designed GBS: N/A 1C228 Magnesium (high purity) containing for electronic component parts or as CIV: N/A both less than 200 parts per million by substrates for electronic circuits; and, (c) List of Items Controlled weight of metallic impurities other than Beryl (silicate of beryllium and aluminum) Unit: Kilograms calcium and less than 10 parts per million in the form of emeralds or aquamarines. Related Controls: N/A of boron. Related Definitions: N/A. Related Definitions: The natural occurrence License Requirements Items: The list of items controlled is of the 6 isotope in lithium is 7.5 atom Reason for Control: NP, AT contained in the ECCN heading. percent.

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Items: The list of items controlled is 1C236 Alpha-emitting radionuclides Related Definitions: N/A contained in the ECCN heading. having an alpha half-life of 10 days or Items: The list of items controlled is greater but less than 200 years, compounds contained in the ECCN heading. 1C234 Zirconium with a hafnium content or mixtures containing any of these of less than 1 part hafnium to 500 parts radionuclides with a total alpha activity of 1C239 High explosives, other than those zirconium by weight, in the form of metal, 37 GBq/kg (1 Ci/kg) or greater, or products controlled by the U.S. Munitions List, or alloys containing more than 50% zirconium or devices containing any of the foregoing, substances or mixtures containing more by weight, or compounds, or manufactures except a product or device containing less than 2% thereof, with a crystal density 3 wholly thereof; except zirconium in the form than 3.7 GBq (100 millicuries) of alpha greater than 1.8 gm per cm and having a detonation velocity greater than 8,000 m/s. of foil having a thickness not exceeding activity. 0.10 mm. License Requirements License Requirements License Requirements Reason for Control: NP, AT Reason for Control: Reason for Control: NP, AT Control(s) Country Chart Control(s) Country Chart

Control(s) Country Chart NP applies to entire entry NP Column 1 NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 NP applies to entire entry NP Column 1 License Exceptions AT applies to entire entry AT Column 1 License Exceptions LVS: N/A LVS: N/A License Exceptions GBS: N/A GBS: N/A LVS: N/A CIV: N/A CIV: N/A GBS: N/A List of Items Controlled List of Items Controlled CIV: N/A Unit: Millicuries Unit: Kilograms List of Items Controlled Related Controls: Certain alpha emitting Related Controls: See also 22 CFR part 12 Related Definitions: N/A Unit: Kilograms radionuclides are subject to the export licensing authority of the Nuclear Items: The list of items controlled is Related Controls: Zirconium metal and alloys Regulatory Commission. (See also 10 CFR contained in the ECCN heading. in the form of tubes or assemblies of tubes, part 110.) 1C240 Nickel powder or porous nickel specially designed or prepared for use in Related Definition: N/A metal, other than those controlled by a reactor are subject to the export licensing Items: The list of items controlled is authority of the Nuclear Regulatory contained in the ECCN heading. 0C006, as follows (see List of Items Controlled). Commission. (See 10 CFR part 110.) This entry includes waste and scrap containing 1C237 Radium-226, radium-226 License Requirements compounds, mixtures containing radium- zirconium. This entry does not control Reason for Control: 226, or products or devices containing any zirconium in the form of foil or strip of the foregoing, except medical Control(s) Country Chart having a thickness not exceeding 0.10 mm applicators, or products or devices (0.004 in.). containing not more than 0.37 GBq (10 NP applies to entire entry NP Column 1 Related Definitions: N/A millicuries) of radium-226 in any form. AT applies to entire entry AT Column 1 Items: The list of items controlled is License Requirements contained in the ECCN heading. License Exceptions Reason for Control: NP, AT LVS: N/A 1C235 Tritium, tritium compounds, GBS: N/A mixtures containing tritium in which the Control(s) Country Chart CIV: N/A ratio of tritium to hydrogen by atoms NP applies to entire entry NP Column 1 List of Items Controlled exceeds 1 part in 1000, or products or AT applies to entire entry AT Column 1 Unit: $ value devices containing any of the foregoing; Related Controls: N/A except, a product or device containing not License Exceptions Related Definitions: N/A more than 1.48µ103 GBq (40 Ci) of tritium LVS: N/A Items: a. Powder with a nickel purity content in any form. GBS: N/A of 99.0% by weight or greater and a mean CIV: N/A License Requirements particle size of less than 10 micrometers List of Items Controlled measured by American Society for Testing Reason for Control: Unit: $ value and Materials (ASTM) B330 standard, except Control(s): Items described in 1C235 are Related Controls: N/A filamentary nickel powders; subject to the export licensing authority of Related Definition: N/A b. Porous nickel powder produced from the Nuclear Regulatory Commission (see 10 Items: The list of items controlled is materials controlled by 1C240.a, except CFR part 110). contained in the ECCN heading. single porous nickel sheets not exceeding 2 License Exceptions 1,000 cm per sheet. 1C238 Chlorine trifluoride (ClF3). Note: 1C240.b refers to porous metal LVS: N/A formed by compacting and sintering the GBS: N/A License Requirements Reason for Control: NP, AT materials in 1C240.a to form a metal material CIV: N/A with fine pores interconnected throughout List of Items Controlled Control(s) Country Chart the structure. Unit: N/A 1C350 Chemicals that may be used as NP applies to entire entry NP Column 1 Related Controls: N/A precursors for toxic chemical agents, as AT applies to entire entry AT Column 1 Related Definitions: N/A follows (see List of Items Controlled). Items: The list of items controlled is License Exceptions License Requirements contained in the ECCN heading. LVS: N/A Reason for Control: CB, AT GBS: N/A CIV: N/A Control(s) Country Chart List of Items Controlled Unit: Kilograms CB applies to entire entry CB Column 2 Related Controls: N/A AT applies to entire entry AT Column 1

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License Requirement Notes Diisopropyl-beta-aminoethanol (C.A.S.#96– c. Countries Not Eligible: The following 1. SAMPLE SHIPMENTS: Certain sample 80–0), N,N-Diisopropyl-beta-aminoethyl countries are not eligible for exports under # shipments of chemicals controlled under chloride (C.A.S. 96–79–7), Dimethyl this Trace Quantities Note: Cuba, Iran, Iraq, # ECCN 1C350 may be made without a license, ethylphosphonate (C.A.S. 6163–75–3), Libya, North Korea, Sudan, and Syria. # as provided by the following: Dimethyl methylphosphonate (C.A.S. 756– 4. COMPOUNDS: A license is not required a. Chemicals Not Eligible: The following 79–6), Ethylphosphonous dichloride under this entry for chemical compounds # chemicals are not eligible for sample [Ethylphosphinyl dichloride] (C.A.S. 1498– created with any chemicals identified in this shipments: 0-Ethyl-2-diisopropylaminoethyl 40–4), Ethylphosphonus difluoride ECCN 1C350, unless those compounds are # methylphosphonite (QL) (C.A.S. #57856–11– [Ethylphosphinyl difluoride] (C.A.S. 430– also identified in this entry. 8), Ethylphosphonyl difluoride (C.A.S. #753– 78–4), Ethylphosphonyl dichloride Technical Notes: 1. For purposes of this # 98–0), and Methylphosphonyl difluoride (C.A.S. 1066–50–8), Methylphosphonous entry, a ‘‘mixture’’ is defined as a solid, (C.A.S. #676–99–3). dichloride [Methylphosphinyl dichloride] liquid or gaseous product made up of two or # b. Countries Not Eligible: The following (C.A.S. 676–83–5), Methylphosphonous more components that do not react together countries are not eligible to receive sample difluoride [Methylphosphinyl difluoride] under normal storage conditions. # shipments: Cuba, Iran, Iraq, Libya, North (C.A.S. 753–59–3), Methylphosphonyl 2. The scope of this control applicable to # Korea, Sudan, Syria. dichloride (C.A.S. 676–97–1), Pinacolyl Hydrogen Fluoride (Item 25 in List of Items # c. Sample Shipments: A license is not alcohol (C.A.S. 464–07–3), 3-Quinuclidinol Controlled) includes its liquid, gaseous, and # required for sample shipments when the (C.A.S. 1619–34–7), and Thiodiglycol aqueous phases, and hydrates. # cumulative total of these shipments does not (C.A.S. 111–48–8); (Related ECCN: 1C995) 3. All de minimis exclusions of this entry exceed a 55-gallon container or 200 kg of c. A license is required when at least one extend to all mixtures including those that each chemical to any one consignee per of all other chemicals in the List of Items contain no solvents. calendar year. Multiple sample shipments, in Controlled constitutes more than 25 percent 4. A Solvent is defined as a substance any quantity, not exceeding the totals of the weight of the mixture on a solvent free capable of dissolving another substance to indicated in this paragraph may be exported basis (related ECCN: 1C995); and form a uniformly dispersed mixture without a license, in accordance with the d. A license is not required under this (solution). For examples and clarification of provisions of this Note 1. A consignee that entry for mixtures when the controlled the term ‘‘solvent free’’ basis, see § 770.4 of receives a sample shipment under this chemical is a normal ingredient in consumer the EAR. exclusion may not resell, transfer or reexport goods packaged for retail sale for personal License Exceptions the sample shipment, but may use the sample use. Such consumer goods are controlled by LVS: N/A shipment for any other legal purpose ECCN EAR99. GBS: N/A unrelated to the chemical weapons. However, e. Calculation of concentrations of AG- CIV: N/A a sample shipment received under this controlled chemicals. exclusion remains subject to all General 1. Usual Commercial Purposes. In List of Items Controlled Prohibitions including the end-use restriction calculating the percentage of an AG Unit: Liters or kilograms, as appropriate described in § 744.4 of the EAR. controlled chemical in a mixture (solution), Related Controls: See also 1C995 d. The exporter is required to submit a any other chemical must be excluded if it Related Definition: See § 770.2(k) of the EAR quarterly written report for shipments of was not added for usual commercial for synonyms for the chemicals listed in samples made under this Note 1. The report purposes, but was added for the sole purpose this entry. must be on company letterhead stationery of circumventing the Export Administration Items: a. Precursor Chemicals, as follows: (titled ‘‘Report of Sample Shipments of Regulations. a.1. (C.A.S. #1341–49–7) Ammonium Chemical Precursors’’ at the top of the first 2. ‘‘Solvent Free Basis Requirement.’’ hydrogen fluoride; page) and identify the chemical(s), Chemical When calculating the percentage, by weight, a.2. (C.A.S. #7784–34–1) Arsenic Abstract Service Registry (C.A.S.) number(s), of components in a chemical mixture, you trichloride; quantity(ies), the ultimate consignee’s name must exclude from the calculation any a.3. (C.A.S. #76–93–7) Benzilic acid; and address, and the date exported. The component of the mixture that acts as a a.4. (C.A.S. #107–07–3) 2-Chloroethanol; report must be sent to the U.S. Department solvent. a.5. (C.A.S. #78–38–6) Diethyl of Commerce, Bureau of Export 3. Solvent—For purposes of this ECCN ‘‘A ethylphosphonate; Administration, P.O. Box 273, Washington, substance capable of dissolving another a.6. (C.A.S. #15715–41–0) Diethyl DC 20044, Attn: ‘‘Report of Sample substance to form a uniformly dispersed methylphosphonite; Shipments of Chemical Precursors’’. mixture (solution)’’. a.7. (C.A.S. S.#2404–03–7) Diethyl-N,N- 2. MIXTURES: Mixtures controlled by this • Solvents are liquids at standard dimethylphosphoroamidate; entry that contain certain concentrations of temperature and pressure (STP). a.8. (C.A.S. #762–04–9) Diethyl phosphite; precursor and intermediate chemicals are • In no instance is an AG controlled a.9. (C.A.S. #100–37–8) N,N- subject to the following licensing chemical considered a ‘‘solvent’’. Diethylaminoethanol; requirements: • All ingredients of mixtures are expressed a.10. (C.A.S. #5842–07–9) N,N-Diisopropyl- a. A license is required, regardless of the in terms of weight. beta-aminoethane thiol; concentrations in the mixture, for the • The solvent component of the mixture a.11. (C.A.S. #4261–68–1) N,N-Diisopropyl- following chemicals: 0-Ethyl-2- converts it into a solution. beta-aminoethyl chloride hydrochloride; diisopropylaminoethyl methylphosphonite 3. TRACE QUANTITIES: a. A license is a.12. (C.A.S. #96–80–0) N,N-Diisopropyl- (QL) (C.A.S.#57856–11–8), Ethylphosphonyl required for mixtures containing any amount beta-aminoethanol; difluoride (C.A.S.#753–98–0) and (including trace quantities) for the following a.13. (C.A.S. #96–79–7), N,N-Diisopropyl- Methylphosphonyl difluoride (C.A.S.#676– chemicals: 0-Ethyl-2-diisopropylaminoethyl beta-aminoethyl chloride; 99–3); methyl phosphonite (QL) (C.A.S. #57856–11– a.14. (C.A.S. #108–18–9) Di- b. A license is required when at least one 8), Ethyl phosphonyl difluoride (C.A.S. isopropylamine; of the following chemicals constitutes more #753–98–0), and Methyl phosphonyl a.15. (C.A.S. #6163–75–3) Dimethyl than 10 percent of the weight of the mixture difluoride (C.A.S. #676–99–3). ethylphosphonate; on a solvent free basis: Arsenic trichloride b. Except as noted in paragraph (3)(a) of the a.16. (C.A.S. #756–79–6) Dimethyl (C.A.S.#7784–34–1), Benzilic acid License Requirements Note, a license is not methylphosphonate; (C.A.S.#76–93–7), Diethyl ethylphosphonate required under this entry for mixtures that a.17. (C.A.S. #868–85–9) Dimethyl (C.A.S.#78–38–6), Diethyl contain a cumulative total concentration of phosphite (dimethyl hydrogen phosphite); methylphosphonite (C.A.S.#15715–41–0), no more than 10,000 parts by weight (pbw) a.18. (C.A.S. #124–40–3) Dimethylamine; Diethyl-N,N-dimethylphosphoroamidate per million of all precursor or intermediate a.19. (C.A.S. #506–59–2) Dimethylamine (C.A.S. #2404–03–7), N,N-Diisopropyl-beta- chemicals listed in this entry. The hydrochloride; aminoethane thiol (C.A.S.#5842–07–9), N,N- calculation for this paragraph (3)(b) should a.20. (C.A.S. #57856–11–8) 0-Ethyl-2- Diisopropyl-2-aminoethyl chloride not be done on a solvent-free basis (related diisopropylaminoethyl methyl phosphonite hydrochloride (C.A.S.#4261–68–1), N,N- ECCN: 1C995). (QL);

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a.21. (C.A.S. #1498–40–4) Ethyl GBS: N/A 1C352 Animal pathogens, as follows (see phosphonous dichloride [Ethyl phosphinyl CIV: N/A List of Items Controlled). dichloride]; List of Items Controlled License Requirements a.22. (C.A.S. #430–78–4) Ethyl phosphonus difluoride [Ethyl phosphinyl difluoride]; Unit: $ value Reason for Control: CB, AT a.23. (C.A.S. #1066–50–8) Ethyl Related Controls: All vaccines and phosphonyl dichloride; ‘‘immunotoxins’’ are excluded from the Control(s) Country Chart a.24. (C.A.S. #753–98–0) Ethyl phosphonyl scope of this entry. See also 1C991. CB applies to entire entry CB Column 1 difluoride; Related Definition: (1) For the purposes of AT applies to entire entry AT Column 1 a.25. (C.A.S. #7664–39–3) Hydrogen this entry ‘‘immunotoxin’’ is defined as an fluoride; antibody-toxin conjugate intended to License Exceptions a.26. (C.A.S. #3554–74–3) 3-Hydroxyl-1- destroy specific target cells (e.g., tumor LVS: N/A methylpiperidine; cells) that bear antigens homologous to the GBS: N/A a.27. (C.A.S. #76–89–1) Methyl benzilate; antibody. (2) For the purposes of this entry CIV: N/A # a.28. (C.A.S. 676–83–5) Methyl ‘‘subunit’’ is defined as a portion of the List of Items Controlled phosphonous dichloride [Methyl phosphinyl ‘‘toxin’’. Unit: $ value dicloride]; Items: a. Viruses, as follows: Related Controls: All vaccines are excluded a.29. (C.A.S. #753–59–3) Methyl a.1. Chikungunya virus; phosphonous difluoride [Methyl phosphinyl from the scope of this entry. See also a.2. Congo-Crimean haemorrhagic fever 1C991. difluoride]; virus; a.30. (C.A.S. #676–97–1) Methyl Related Definition: N/A a.3. Dengue fever virus; Items: a. Viruses, as follows: phosphonyl dichloride; a.4. Eastern equine encephalitis virus; # a.1. African swine fever virus; a.31. (C.A.S. 676–99–3) Methyl a.5. Ebola virus; phosphonyl difluoride; a.2. Avian influenza virus that are: # a.6. Hantaan virus; a.2.a. Defined in EC Directive 92/40/EC a.32. (C.A.S. 10025–87–3) Phosphorus a.7. Japanese encephalitis virus; oxychloride; (O.J. L.16 23.1.92 p.19) as having high # a.8. Junin virus; pathogenicity, as follows: a.33. (C.A.S. 10026–13–8) Phosphorus a.9. Lassa fever virus pentachloride; a.2.a.1. Type A viruses with an IVPI a.10. Lymphocytic choriomeningitis virus; a.34. (C.A.S. #1314–80–3) Phosphorus (intravenous pathogenicity index) in 6 week a.11. Machupo virus; pentasulfide; old chickens of greater than 1.2; or a.12. Marburg virus; a.35. (C.A.S. #7719–12–2) Phosphorus a.2.a.2. Type A viruses H5 or H7 subtype trichloride; a.13. Monkey pox virus; for which nucleotide sequencing has a.36. (C.A.S. #75–97–8) Pinacolone; a.14. Rift Valley fever virus; demonstrated multiple basic amino acids at a.37. (C.A.S. #464–07–3) Pinacolyl alcohol; a.15. Tick-borne encephalitis virus the cleavage site of haemagglutinin; a.38. (C.A.S. #151–50–8) Potassium (Russian Spring-Summer encephalitis virus); a.3. Bluetongue virus; cyanide; a.16. Variola virus; a.4. Foot and mouth disease virus; a.39. (C.A.S. #7789–23–3) Potassium a.17. Venezuelan equine encephalitis virus; a.5. Goat pox virus; fluoride; a.18. Western equine encephalitis virus; a.6. Porcine herpes virus (Aujeszky’s a.40. (C.A.S. #7789–29–9) Potassium a.19. White pox; or disease); bifluoride; a.20. Yellow fever virus. a.7. Swine fever virus (Hog cholera virus); a.41. (C.A.S. #1619–34–7) 3-Quinuclidinol; b. Rickettsiae, as follows: a.8. Lyssa virus; a.42. (C.A.S. #3731–38–2) 3-Quinuclidone; b.1. Bartonella quintana (Rochalimea a.9. Newcastle disease virus; a.43. (C.A.S. #1333–83–1) Sodium quintana, Rickettsia quintana); a.10. Peste des petits ruminants virus; bifluoride; b.2. Coxiella burnetii; a.11. Porcine enterovirus type 9 (swine a.44. (C.A.S. #143–33–9) Sodium cyanide; b.3. Rickettsia prowasecki; or vesicular disease virus); a.12. Rinderpest virus; a.45. (C.A.S. #7681–49–4) Sodium fluoride; b.4. Rickettsia rickettsii. a.13. Sheep pox virus; a.46. (C.A.S. #1313–82–2) Sodium sulfide; c. Bacteria, as follows: a.14. Teschen disease virus; a.47. (C.A.S. #10025–67–9) Sulfur c.1. Bacillus anthracis; a.15. Vesicular stomatitis virus; monochloride; c.2. Brucella abortus; a.48. (C.A.S. #10545–99–0) Sulfur b. Bacteria, as follows: c.3. Brucella melitensis; b.1. Mycoplasma mycoides. dichloride; c.4. Brucella suis; # b.2. Reserved. a.49. (C.A.S. 111–48–8) Thiodiglycol; c.5. Burkholderia mallei (Pseudomonas # a.50. (C.A.S. 7719–09–7) Thionyl mallei); 1C353 Genetically-modified chloride; c.6. Burkholderia pseudomallei ``microorganisms'', as follows (see List of # a.51. (C.A.S. 102–71–6) Triethanolamine; (Pseudomonas pseudomallei); Items Controlled). a.52. (C.A.S. #637–39–8) Triethanolamine c.7. Chlamydia psittaci; License Requirements hydrochloride; c.8. Clostridium botulinum; # Reason for Control: CB, AT a.53. (C.A.S. 122–52–1) Triethyl c.9. Francisella tularensis; phosphite; and c.10. Salmonella typhi; a.54. (C.A.S. #121–45–9) Trimethyl Control(s) Country Chart c.11. Shigella dysenteriae; phosphite. c.12. Vibrio cholerae; b. Reserved. CB applies to entire entry CB Column 1 c.13. Yersinia pestis. AT applies to entire entry AT Column 1 1C351 Human pathogens, zoonoses, and d. ‘‘Toxins’’, as follows: and subunits License Exceptions ``toxins'', as follows (see List of Items thereof: Controlled). d.1. Botulinum toxins; LVS: N/A GBS: N/A License Requirements d.2. Clostridium perfringens toxins; d.3. Conotoxin; CIV: N/A Reason for Control: CB, AT d.4. Microcystin (cyanginosin); List of Items Controlled d.5. Ricin; Control(s) Country Chart Unit: $ value d.6. Saxitoxin; Related Controls: All vaccines are excluded CB applies to entire entry CB Column 1 d.7. Shiga toxin; from the scope of this entry. See also AT applies to entire entry AT Column 1 d.8. Staphylococcus aureus toxins; 1C991 d.9. Tetrodotoxin; Related Definition: N/A License Exceptions d.10. Verotoxin; or Items: a. Genetically modified LVS: N/A d.11. Aflatoxins. ‘‘microorganisms’’ or genetic elements that

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Control(s): SS applies to entire entry. For (NPR) or became available for export as a licensing requirements (and possible result of an exchange of any NPR produced 1C354 Plant pathogens, as follows (see License Exceptions) proceed directly to or derived commodities. List of Items Controlled). part 754 of the EAR. The Commerce License Requirements License Requirements Country Chart is not designed to determine Reason for Control: SS Reason for Control: CB, AT licensing requirements for items controlled Control(s): SS applies to entire entry. For for SS reasons licensing requirements (and possible Control(s) Country Chart List of Items Controlled License Exceptions) proceed directly to part 754 of the EAR. The Commerce Unit: Barrels/Liters Country Chart is not designed to determine CB applies to entire entry CB Column 1 Related Controls: N/A AT applies to entire entry AT Column 1 licensing requirements for items controlled Related Definitions: N/A for SS reasons License Exceptions Items: The list of items controlled is List of Items Controlled LVS: N/A contained in the ECCN heading Unit: Millions of cubic feet GBS: N/A 1C982 Other petroleum products listed in Related Controls: N/A CIV: N/A Related Definitions: N/A Supplement No. 1 to part 754 of the EAR Items: The list of items controlled is List of Items Controlled that were produced or derived from the contained in the ECCN heading Unit: $ value Naval Petroleum Reserves (NPR) or became Related Controls: All vaccines are excluded available for export as a result of an 1C988 Western red cedar (thuja plicata), from the scope of this entry. See also exchange of any NPR produced or derived logs and timber, and rough, dressed and 1C991 commodities. worked lumber containing wane listed in Related Definitions: N/A Supplement No. 2 to part 754 of the EAR. Items: a. Bacteria, as follows: License Requirements License Requirements a.1. Xanthomonas albilineans; Reason for Control: SS a.2. Xanthomonas campestris pv. citri Control(s): SS applies to entire entry. For Reason for Control: SS Control(s): SS applies to entire entry. For including strains referred to as Xanthomonas licensing requirements (and possible licensing requirements (and possible campestris pv. citri types A,B,C,D,E or License Exceptions) proceed directly to License Exceptions) proceed directly to otherwise classified as Xanthomonas citri, part 754 of the EAR. The Commerce part 754 of the EAR. The Commerce Xanthomonas campestris pv. aurantifolia or Country Chart is not designed to determine Country Chart is not designed to determine Xanthomonas campestris pv. citrumelo; licensing requirements for items controlled licensing requirements for items controlled b. Fungi, as follows: for SS reasons for SS reasons b.1. Colletotrichum coffeanum var. List of Items Controlled List of Items Controlled virulans (Colletotrichum kahawae); Unit: Million board feet scribner b.2. Cochliobolus miyabeanus Unit: $ value Related Controls: N/A (Helminthosporium oryzae); Related Controls: N/A Related Definitions: N/A b.3. Microcyclus ulei (syn. Dothidella ulei); Related Definitions: N/A Items: The list of items controlled is Items: The list of items controlled is b.4. Puccinia graminis (syn. Puccinia contained in the ECCN heading graminis f. sp. tritici); contained in the ECCN heading b.5. Puccinia striiformis (syn. Puccinia 1C990 Fibrous and filamentary materials, glumarum); 1C983 Natural gas liquids and other not controlled by 1C010 or 1C210, for use b.6. Magnaporthe grisea (pyricularia grisea/ natural gas derivatives listed in Supplement in ``composite'' structures and with a pyricularia oryzae). No. 1 to part 754 of the EAR that were specific modulus of 3.18µ10 6 m or greater produced or derived from the Naval and a specific tensile strength of 7.62µ10 4 1C980 Inorganic chemicals listed in Petroleum Reserves (NPR) or became m or greater. Supplement No. 1 to part 754 of the EAR available for export as a result of an License Requirements that were produced or derived from the exchange of any NPR produced or derived Naval Petroleum Reserves (NPR) or became commodities. Reason for Control: AT available for export as a result of an License Requirements exchange of any NPR produced or derived Control(s) Country Chart commodities. Reason for Control: SS Control(s): SS applies to entire entry. For AT applies to entire entry AT Column 1 License Requirements licensing requirements (and possible License Exceptions Reason for Control: SS License Exceptions) proceed directly to LVS: N/A Control(s): SS applies to entire entry. For part 754 of the EAR. The Commerce GBS: N/A licensing requirements (and possible Country Chart is not designed to determine CIV: N/A License Exceptions) proceed directly to licensing requirements for items controlled List of Items Controlled part 754 of the EAR. The Commerce for SS reasons. Country Chart is not designed to determine Unit: Kilograms licensing requirements for items controlled List of Items Controlled Related Controls: N/A for SS reasons Unit: Barrels/Liters Related Definitions: N/A Items: The list of items controlled is Related Controls: N/A List of Items Controlled contained in the ECCN heading Unit: Barrels/Liters Related Definitions: N/A Related Controls: N/A Items: The list of items controlled is 1C991 Vaccines containing items Related Definitions: N/A contained in the ECCN heading controlled by ECCNs 1C351, 1C352, 1C353, Items: The list of items controlled is and 1C354; and immunotoxins. contained in the ECCN heading. License Requirements

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Reason for Control: AT Related Controls: N/A Items: The list of items controlled is AT applies to entire entry. A license is Related Definition: For calculation of de contained in the ECCN heading required for items controlled by this entry minimis quantities of controlled chemicals to Cuba, Iran, Libya and North Korea. The in mixtures, see the License Requirements 1D018 ``Software'' specially designed or Commerce Country Chart is not designed Notes 2 and 3 under ECCN 1C350 and modified for the ``development'', to determine licensing requirements for § 770.4 of the EAR ``production'', or ``use'' of items controlled this entry. See part 746 of the EAR for Items: The list of items controlled is by 1B018. contained in the ECCN heading additional information License Requirements License Exceptions D. Software Reason for Control: NS, MT, AT LVS: N/A 1D001 ``Software'' specially designed or GBS: N/A Control(s) Country Chart CIV: N/A modified for the ``development'', ``production'' or ``use'' of equipment List of Items Controlled NS applies to entire entry NS Column 1 controlled by 1B001 to 1B003. Unit: $ value MT applies to ‘‘software’’ MT Column 1 Related Controls: N/A License Requirements for the ‘‘development’’, Related Definitions: For the purpose of this Reason for Control: NS, MT, NP, AT ‘‘production’’, or ‘‘use’’ entry ‘‘immunotoxin’’ is defined as an of items controlled by antibody-toxin conjugate intended to Control(s) Country Chart 1B018 for MT reasons. destroy specific target cells (e.g., tumor AT applies to entire entry AT Column 1 cells) that bear antigens homologous to the NS applies to entire entry NS Column 1 antibody MT applies to ‘‘software’’ MT Column 1 License Exceptions Items: The list of items controlled is for the ‘‘development’’, CIV: N/A contained in the ECCN heading ‘‘production’’, or ‘‘use’’ TSR: N/A of items controlled by List of Items Controlled 1C992 Oil well perforators. 1B001 for MT reasons. Unit: $ value License Requirements NP applies to ‘‘software’’ NP Column 1 for the ‘‘development’’, Related Controls: N/A Reason for Control: AT ‘‘production’’ or ‘‘use’’ Related Definitions: N/A of items controlled by Items: The list of items controlled is Control(s) Country Chart 1B001 for NP reasons. contained in the ECCN heading AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 1D101 ``Software'' specially designed for License Exceptions License Exceptions the ``use'' of goods controlled by 1B101. CIV: Yes, except N/A for MT LVS: N/A License Requirements TSR: Yes, except N/A for MT GBS: N/A Reason for Control: MT, AT CIV: N/A List of Items Controlled Unit: $ value List of Items Controlled Control(s) Country Chart Related Controls: See also 1D101 and 1D102 Unit: Materials in number Related Definitions: N/A Related Controls: N/A MT applies to entire entry MT Column 1 Items: The list of items controlled is Related Definitions: N/A AT applies to entire entry AT Column 1 contained in the ECCN heading Items: a. Shaped charges specially designed License Exceptions for oil well operations, utilizing one charge 1D002 ``Software'' for the ``development'' functioning along a single axis, that upon of organic ``matrix'', metal ``matrix'' or CIV: N/A detonation produce a hole, and: carbon ``matrix'' laminates or TSR: N/A a.1. Contain any formulation of RDX, PYX, ``composites''. List of Items Controlled PETN, HNS, or HMX; and Unit: $ value a.2. Have only a uniformly shaped conical License Requirements liner with an included angle of 90 degrees or Reason for Control: NS, MT, AT Related Controls: N/A less; and Related Definitions: N/A a.3. Have a total explosive mass of no more Control(s) Country Chart Items: The list of items controlled is than 90 grams; and contained in the ECCN heading a.4. Have a diameter not exceeding three NS applies to entire entry NS Column 1 inches. MT applies to ‘‘software’’ MT Column 1 1D102 Other ``software'' not controlled by b. Reserved. specially designed or 1D001, 1D002, and 1D103, specially modified for the ‘‘devel- designed for the ``development'', 1C995 Mixtures containing precursor and opment’’ of ‘‘compos- ``production'' or ``use'' of items controlled intermediate chemicals used in the ites’’ controlled by 1A, by 1A, 1B, and 1C for MT reasons. ``production'' of chemical warfare agents 1B or 1C entries for MT License Requirements that are not controlled by ECCN 1C350. reasons. Reason for Control: MT, AT License Requirements AT applies to entire entry AT Column 1 Reason for Control: AT License Requirement Notes: See § 743.1 of Control(s) Country Chart AT applies to entire entry. A license is the EAR for reporting requirements for required for items controlled by this entry exports under Exceptions. MT applies to entire entry MT Column 1 to Cuba, Iran, Libya and North Korea. The License Exceptions AT applies to entire entry AT Column 1 Commerce Country Chart is not designed CIV: Yes, except N/A for MT to determine licensing requirements for License Exceptions TSR: Yes, except N/A for MT this entry. See part 746 of the EAR for CIV: N/A additional information List of Items Controlled TSR: N/A License Exceptions Unit: $ value List of Items Controlled Related Controls: ‘‘Software’’ for items LVS: N/A controlled by 1A102 are subject to the Unit: $ value GBS: N/A export licensing authority of the U.S. Related Controls: N/A CIV: N/A Department of State, Office of Defense Related Definitions: N/A List of Items Controlled Trade Controls (see 22 CFR part 121). Items: The list of items controlled is Unit: Kilograms Related Definitions: N/A contained in the ECCN heading

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1D103 ``Software'' specially designed for CIV: N/A controlled by 1C235 are subject to the analysis of reduced observables such as TSR: N/A export licensing authority of the radar reflectivity, ultraviolet/infrared List of Items Controlled Department of Energy (see 10 CFR part signatures and acoustic signatures. Unit: $ value 810). (3) ‘‘Technology’’ for items described License Requirements Related Controls: N/A in 1C012 are subject to the export licensing authority of the Nuclear Regulatory Reason for Control: MT, AT Related Definitions: N/A Items: The list of items controlled is Commission (see 10 CFR part 110). (4) ‘‘Technology’’ for items controlled by Control(s) Country Chart contained in the ECCN heading 1A102 are subject to the export licensing E. Technology MT applies to entire entry MT Column 1 authority of the U.S. Department of State, AT applies to entire entry AT Column 1 1E001 ``Technology'' according to the Office of Defense Trade Controls (see 22 CFR part 121). License Exceptions General Technology Note for the ``development'' or ``production'' of items Related Definitions: N/A CIV: N/A Items: The list of items controlled is TSR: N/A controlled by 1A001.b, 1A001.c, 1A002, 1A003, 1A004, 1A005, 1A102, 1B or 1C contained in the ECCN heading. List of Items Controlled (except 1C980 to 1C984, 1C988, 1C990, 1E002 Other ``technology'', as follows (see Unit: $ value 1C991, 1C992, 1C994 and 1C995). List of Items Controlled). Related Controls: N/A Related Definitions: N/A License Requirements License Requirements Items: The list of items controlled is Reason for Control: NS, MT, NP, CB, AT Reason for Control: NS, MT, AT contained in the ECCN heading Control(s) Country Chart 1D201 ``Software'' specially designed for Control(s) Country Chart the ``use'' of goods controlled by 1B201. NS applies to ‘‘tech- NS Column 1 NS applies to entire entry NS Column 1 nology’’ for items con- License Requirements MT applies to 1E002.e ...... MT Column 1 trolled by 1A001.b and AT applies to entire entry AT Column 1 Reason for Control: NP, AT .c, 1A002, 1A003, 1B001 to 1B003, 1B018, License Requirement Notes: See § 743.1 of Control(s) Country Chart 1B225, 1C001 to 1C010, the EAR for reporting requirements for 1C018, 1C230, 1C231, exports under License Exceptions. NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 1C233, or 1C234. License Exceptions MT applies to ‘‘tech- MT Column 1 CIV: N/A License Exceptions nology’’ 1 for items con- TSR: Yes, except for 1E002.e CIV: N/A trolled by 1B001, TSR: N/A 1B101, 1B115, 1B116, List of Items Controlled List of Items Controlled 1C001, 1C007, 1C101, Unit: N/A 1C107, 1C011, 1C111, Related Controls: See also 1E102, 1E202, and Unit: $ value 1E101 for ‘‘technology’’ related to 1E002.e Related Controls: N/A 1C116, or 1C117 for MT Related Definitions: N/A reasons. Related Definitions: N/A Items: The list of items controlled is NP applies to ‘‘tech- NP Column 1 Items: a. ‘‘Technology’’ for the contained in the ECCN heading nology’’ for items con- ‘‘development’’ or ‘‘production’’ of trolled by 1A002, polybenzothiazoles or polybenzoxazoles; 1D390 ``Software'' for process control that 1B001, 1B101, 1B201, b. ‘‘Technology’’ for the ‘‘development’’ or is specifically configured to control or 1B225 to 1B232, 1C001, ‘‘production’’ of fluoroelastomer compounds initiate ``production'' of chemicals 1C010, 1C202, 1C210, containing at least one vinylether monomer; controlled by 1C350. 1C216, 1C225 to 1C234, c. ‘‘Technology’’ for the design or 1C236 to 1C238 for NP License Requirements ‘‘production’’ of the following base materials reasons. or non-‘‘composite’’ ceramic materials: Reason for Control: CB, AT CB applies to ‘‘tech- CB Column 1 c.1. Base materials having all of the nology’’ for items con- following characteristics: Control(s) Country Chart trolled by 1C351, c.1.a. Any of the following compositions: 1C352, 1C353, or 1C354. c.1.a.1. Single or complex oxides of CB applies to entire entry NP Column 2 CB applies to ‘‘tech- CB Column 2 AT applies to entire entry AT Column 1 zirconium and complex oxides of silicon or nology’’ for materials aluminum; License Exceptions controlled by 1C350. c.1.a.2. Single nitrides of boron (cubic CIV: N/A AT applies to entire entry AT Column 1 crystalline forms); TSR: N/A License Requirement Notes: See § 743.1 of c.1.a.3. Single or complex carbides of List of Items Controlled the EAR for reporting requirements for silicon or boron; or Unit: $ value exports under License Exceptions. c.1.a.4. Single or complex nitrides of Related Controls: N/A License Exceptions silicon; Related Definitions: N/A CIV: N/A c.1.b. Total metallic impurities, excluding Items: The list of items controlled is TSR: Yes, except for MT and for exports and intentional additions, of less than: contained in the ECCN heading reexports to destinations outside of c.1.b.1. 1,000 ppm for single oxides or Austria, Belgium, Canada, Denmark, carbides; or 1D993 ``Software'' specially designed for c.1.b.2. 5,000 ppm for complex compounds the ``development'', ``production'', or ``use'' Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, or single nitrides; and of equipment or materials controlled by c.1.c. Having any of the following: 1C210.b, 1C990, or 1C994. Portugal, Spain, Sweden, or the United Kingdom of ‘‘technology’’ for items c.1.c.1. Average particle size equal to or License Requirements controlled by 1C001 or 1C012; or 1A002.a, less than 5 µm and no more than 10% of the Reason for Control: AT having an organic ‘‘matrix’’ and made from particles larger than 10 µm; or materials listed under 1C010.c or 1C010.d. Note: For zirconia, these limits are 1 µm Control(s) Country Chart List of Items Controlled and 5 µm respectively. Unit: N/A c.1.c.2. Having all of the following: AT applies to entire entry AT Column 1 Related Controls: (1) See also 1E101 and c.1.c.2.a. Platelets with a length to License Exceptions 1E210. (2) ‘‘Technology’’ for items thickness ratio exceeding 5;

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c.1.c.2.b. Whiskers with a length to Related Definitions: N/A Unit: N/A diameter ratio exceeding 10 for diameters Items: The list of items controlled is Related Controls: N/A less than 2 µm; and contained in the ECCN heading. Related Definitions: N/A c.1.c.2.c. Continuous or chopped fibers less Items: The list of items controlled is µ 1E103 ``Technical data'' (including than 10 m in diameter; contained in the ECCN heading. c.2. Non-‘‘composite’’ ceramic materials processing conditions) for the regulation of composed of the materials described in temperature, pressure or atmosphere in 1E202 ``Technology'' according to the 1E002.c.1; autoclaves or hydroclaves, when used for General Technology Note for the Note: 1E002.c.2 does not control the ``production'' of ``composites'' or ``development'' or ``production'' of goods technology for the design or production of partially processed ``composites''. controlled by 1A202 or 1A225 to 1A227. abrasives. License Requirements License Requirements d. ‘‘Technology’’ for the ‘‘production’’ of Reason for Control: MT, AT Reason for Control: NP, AT aromatic polyamide fibers; e. ‘‘Technology’’ for the installation, Control(s) Country Chart maintenance or repair of materials controlled Control(s) Country Chart by 1C001; MT applies to entire entry MT Column 1 f. ‘‘Technology’’ for the repair of AT applies to entire entry AT Column 1 NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 ‘‘composite’’ structures, laminates or License Exceptions materials controlled by 1A002, 1C007.c or License Exceptions 1C007.d. CIV: N/A TSR: N/A CIV: N/A Note: 1E002.f does not control TSR: N/A ‘‘technology’’ for the repair of ‘‘civil aircraft’’ List of Items Controlled structures using carbon ‘‘fibrous or Unit: N/A List of Items Controlled filamentary materials’’ and epoxy resins, Related Controls: See also 1E203 Unit: N/A contained in aircraft manufacturers’ manuals. Related Definitions: N/A Related Controls: N/A Items: The list of items controlled is Related Definitions: N/A 1E101 ``Technology'' according to the contained in the ECCN heading. Items: The list of items controlled is General Technology Note for the ``use'' of contained in the ECCN heading. goods controlled by 1A102, 1B001, 1B101, 1E104 ``Technology'' relating to the 1B115, 1B116, 1C001, 1C007, 1C011, 1C101, ``production'' of pyrolitically derived 1E203 ``Technology'' according to the 1C107, 1C111, 1C116, 1C117, 1D101 or materials formed on a mold, mandrel or General Technology Note for the 1D103. other substrate from precursor gases which ``development'' of ``software'' controlled by License Requirements decompose in the 1,573 K (1,300≥ C) to 1D201. 3,173 K (2,900≥ C) temperature range at Reason for Control: MT, NP, AT pressures of 130 Pa to 20 kPa. License Requirements Reason for Control: NP, AT Control(s) Country Chart License Requirements Reason for Control: MT, AT MT applies to entire entry MT Column 1 Control(s) Country Chart NP applies to 1B001.a and NP Column 1 Control(s) Country Chart 1B101. NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 MT applies to entire entry MT Column 1 AT applies to entire entry AT Column 1 License Exceptions AT applies to entire entry AT Column 1 License Exceptions CIV: N/A License Exceptions CIV: N/A TSR: N/A CIV: N/A TSR: N/A List of Items Controlled TSR: N/A List of Items Controlled Unit: N/A List of Items Controlled Unit: N/A Related Controls: ‘‘Technology’’ for items Unit: N/A Related Controls: N/A controlled by 1A102 are subject to the Related Controls: This entry includes Related Definitions: N/A export licensing authority of the U.S. ‘‘technology’’ for the composition of Items: The list of items controlled is Department of State, Office of Defense precursor gases, flow-rates and process contained in the ECCN heading. Trade Controls (see 22 CFR part 121). control schedules and parameters. Related Definitions: N/A Related Definitions: N/A 1E350 ``Technology'' according to the Items: The list of items controlled is Items: The list of items controlled is ``General Technology Note'' for facilities contained in the ECCN heading. contained in the ECCN heading. designed or intended to produce chemicals controlled by 1C350. 1E102 ``Technology'' according to the 1E201 ``Technology'' according to the License Requirements General Technology Note for the General Technology Note for the ``use'' of ``development'' of ``software'' controlled by goods controlled by 1A002, 1A202, 1A225 to Reason for Control: CB, AT 1D001, 1D101 or 1D103. 1A227, 1B201, 1B225 to 1B233, 1C002.a.2.c License Requirements or .d, 1C010.b, 1C202, 1C210, 1C216, 1C225 Control(s) Country Chart to 1C240 or 1D201. Reason for Control: MT, AT CB applies to entire entry CB Column 2 License Requirements AT applies to entire entry AT Column 1 Control(s) Country Chart Reason for Control: NP, AT License Exceptions MT applies to entire entry MT Column 1 Control(s) Country Chart CIV: N/A AT applies to entire entry AT Column 1 TSR: N/A NP applies to entire entry NP Column 1 License Exceptions List of Items Controlled AT applies to entire entry AT Column 1 CIV: N/A Unit: N/A TSR: N/A License Exceptions Related Controls: N/A List of Items Controlled CIV: N/A Related Definitions: N/A Unit: N/A TSR: N/A Items: The list of items controlled is Related Controls: N/A List of Items Controlled contained in the ECCN heading.

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1E351 ``Technology'' according to the LVS: $3000 a.9. Zirconium oxide (zirconia) (ZrO2); ``General Technology Note'' for the disposal GBS: Yes, for 2A001.a and 2A001.b b. Crucibles with a volume of between 50 of chemicals or microbiological materials CIV: Yes, for 2A001.a and 2A001.b ml and 2 liters and made of or lined with controlled by 1C350, 1C351, 1C352, 1C353, List of Items Controlled tantalum, having a purity of 99.9% or greater; or 1C354. Unit: $ value c. Crucibles with a volume of between 50 License Requirements Related Controls: (1) See also 2A991. (2) This ml and 2 liters and made of or lined with tantalum (having a purity of 98% or greater) Reason for Control: CB, AT entry does not control balls with tolerance specified by the manufacturer in coated with tantalum carbide, nitride or boride (or any combination of these). Control(s) Country Chart accordance with ISO 3290 as grade 5 or worse. (3) Quiet running bearings are 2A226 Valves 5 mm or greater in ``nominal CB applies to ‘‘tech- CB Column 1 subject to the export licensing authority of size'', with a bellows seal, wholly made of the Department of State, Office of Defense nology’’ for the disposal or lined with aluminum, aluminum alloy, Trade Controls. (See 22 CFR part 121.) of items controlled by nickel, or alloy containing 60% or more Related Definitions: Annular Bearing 1C351, 1C352, 1C353, or nickel, either manually or automatically Engineers Committee (ABEC). 1C354. operated. CB applies to ‘‘tech- CB Column 2 Items: a. Ball bearings and solid roller nology’’ for the disposal bearings having tolerances specified by the License Requirements of items controlled by manufacturer in accordance with ABEC 7, Reason for Control: NP, AT 1C350. ABEC 7P, ABEC 7T or ISO Standard Class 4 AT applies to entire entry AT Column 1 or better (or national equivalents), and having Control(s) Country Chart rings, balls or rollers made from monel or License Exceptions beryllium; NP applies to entire entry NP Column 1 CIV: N/A Note: 2A001.a does not control tapered AT applies to entire entry AT Column 1 TSR: N/A roller bearings. License Exceptions List of Items Controlled b. Other ball bearings and solid roller LVS: N/A Unit: N/A bearings having tolerances specified by the GBS: N/A Related Controls: N/A manufacturer in accordance with ABEC 9, CIV: N/A Related Definitions: N/A ABEC 9P or ISO Standard Class 2 or better Items: The list of items controlled is (or national equivalents); List of Items Controlled contained in the ECCN heading. Note: 2A001.b does not control tapered Unit: $ value roller bearings. Related Controls: Valves are also subject to 1E994 ``Technology'' for the the export licensing authority of the c. Active magnetic bearing systems using ``development'', ``production'', or ``use'' of Nuclear Regulatory Commission. (See 10 any of the following: fibrous and filamentary materials controlled CFR part 110.) c.1. Materials with flux densities of 2.0 T by 1C990 or fluorocarbon electronic cooling Related Definition: For valves with different or greater and yield strengths greater than fluids controlled by 1C994. inlet and outlet diameter, the ‘‘nominal 414 MPa; size’’ parameter described in the entry License Requirements c.2. All-electromagnetic 3D homopolar bias refers to the smallest diameter. Reason for Control: AT designs for actuators; or c.3. High temperature (450 K (177 °C) and Items: The list of items controlled is contained in the ECCN heading. Control(s) Country Chart above) position sensors. 2A290 Generators and other equipment AT applies to entire entry AT Column 1 2A225 Crucibles made of materials resistant to liquid actinide metals, as specially designed, prepared, or intended License Exceptions follows (see List of Items Controlled). for use with nuclear plants. CIV: N/A License Requirements License Requirements TSR: N/A Reason for Control: NP, AT Reason for Control: NP, AT List of Items Controlled Unit: N/A Control(s) Country Chart Control(s) Country Chart Related Controls: N/A Related Definitions: N/A NP applies to entire entry NP Column 1 NP applies to entire entry NP Column 2 Items: The list of items controlled is AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 contained in the ECCN heading. License Exceptions License Exceptions EAR99 Items subject to the EAR that are LVS: N/A LVS: N/A not elsewhere controlled by this CCL GBS: N/A GBS: N/A Category or in any other category in the CIV: N/A CIV: N/A CCL are designated by the number EAR99. List of Items Controlled List of Items Controlled Unit: $ value Category 2—Materials Processing Unit: $ value Related Controls: N/A Related Controls: Nuclear equipment is also Note: For quiet running bearings, see the Related Definitions: N/A subject to the export licensing authority of U.S. Munitions List. Items: a. Crucibles with a volume of between the Nuclear Regulatory Commission. (See A. Equipment, Assemblies and Components 150 ml and 8 liters and made of or coated 10 CFR part 110.) with any of the following materials having a Related Definitions: N/A 2A001 Anti-friction bearings and bearing purity of 98% or greater: Items: systems, as follows, (see List of Items a.1. Calcium fluoride (CaF2); a. Generators, turbine-generator sets, steam Controlled) and components therefor. a.2. Calcium zirconate (metazirconate) turbines, heat exchangers, and heat exchanger type condensers designed or License Requirements (Ca2ZrO3); a.3. Cerium sulphide (Ce2S3); intended for use in a nuclear reactor; Reason for Control: NS, AT a.4. Erbium oxide (erbia) (Er2O3); b. Process control systems intended for use a.5. Hafnium oxide (hafnia) (HfO2); with the equipment controlled by 2A290.a. Control(s) Country Chart a.6. Magnesium oxide (MgO); a.7. Nitrided niobium-titanium-tungsten 2A291 Equipment related to nuclear NS applies to entire entry NS Column 2 alloy (approximately 50% Nb, 30% Ti, 20% material handling and processing and to AT applies to entire entry AT Column 1 W); nuclear reactors. License Exceptions a.8. Yttrium oxide (yttria) (Y2O3); or License Requirements

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Reason for Control: NP, AT Control(s) Country Chart operate at speeds exceeding 2.3 million DN; or Control(s) Country Chart NP applies to entire entry NP Column 2 b.2. Manufactured for use at operating AT applies to entire entry AT Column 1 temperatures below 219 K (¥54° C) or above NP applies to entire entry NP Column 2 423 K (150° C). AT applies to entire entry AT Column 1 License Exceptions c. Gas-lubricated foil bearing manufactured LVS: N/A for use at operating temperatures of 561 K License Exceptions GBS: N/A (288° C) or higher and a unit load capacity LVS: N/A CIV: N/A exceeding 1 MPa. GBS: N/A List of Items Controlled d. Active magnetic bearing systems. CIV: N/A Unit: Equipment in number e. Fabric-lined self-aligning or fabric-lined List of Items Controlled Related Controls: N/A journal sliding bearings manufactured for use ° Unit: Equipment in number; parts and Related Definitions: N/A at operating temperatures below 219 K (¥54 ° accessories in $ value Items: The list of items controlled is C) or above 423 K (150 C). Related Controls: Nuclear equipment is also contained in the ECCN heading 2A993 Explosive detection systems, subject to the export licensing authority of consisting of an automated device, or the Nuclear Regulatory Commission. (See 2A991 Bearings and bearing systems not controlled by 2A001. combination of devices, with the ability to 10 CFR part 110.) detect the presence of different types of Related Definitions: N/A License Requirements explosives, in passenger checked baggage, Items: a. Process control systems, except Reason for Control: AT without need for human skill, vigilance, or those controlled by 2A290.b, intended for use judgment. with nuclear reactors. Control(s) Country Chart License Requirements b. Casks that are specially designed for transportation of high-level radioactive AT applies to entire entry AT Column 1 Reason for Control: AT material and that weigh more than 1,000 kg. License Exceptions c. Commodities, parts and accessories Control(s) Country Chart LVS: N/A specially designed or prepared for use with GBS: N/A AT applies to entire entry AT Column 1 nuclear plants (e.g., snubbers, airlocks, CIV: N/A reactor and fuel inspection equipment) License Exceptions List of Items Controlled except items licensed by the Nuclear LVS: N/A Regulatory Commission, pursuant to 10 CFR Unit: $ value GBS: N/A part 110. Related Controls: (1) This entry does not CIV: N/A control balls with tolerance specified by List of Items Controlled 2A292 Piping, fittings and valves made of, the manufacturer in accordance with ISO or lined with, stainless steel, copper-nickel 3290 as grade 5 or worse. (2) Quiet running Unit: Equipment in number alloy or other alloy steel containing 10% or bearings are subject to the export licensing Related Controls: N/A more nickel and/or chromium. authority of the Department of State, Office Related Definitions: N/A Items: The list of items controlled is License Requirements of Defense Trade Controls. (See 22 CFR part 121) contained in the ECCN heading Reason for Control: NP, AT Related Definitions: (1) (a) DN is the product 2A994 Portable electric generators and of the bearing bore diameter in mm and the specially designed parts. Control(s) Country Chart bearing rotational velocity in rpm. (b) Operating temperatures include those License Requirements NP applies to entire entry NP Column 2 temperatures obtained when a gas turbine Reason for Control: AT AT applies to entire entry AT Column 1 engine has stopped after operation. (2) Control(s): AT applies to entire entry. A License Exceptions Annular Bearing Engineers Committee license is required for items controlled by LVS: N/A (ABEC); American National Standards this entry to Cuba, Iran, Libya, and North Institute (ANSI); Anti-Friction Bearing Korea. The Commerce Country Chart is not GBS: N/A Manufacturers Association (AFBMA) designed to determine licensing CIV: N/A Items: a. Ball bearings or Solid ball bearings requirements for this entry. See part 746 of List of Items Controlled (except tapered roller bearings), having the EAR for additional information Unit: Pressure tubes, pipes, and fittings in tolerances specified by the manufacturer in Note: Exports from the U.S. and kilograms; valves in number; parts and accordance with ABEC 7, ABEC 7P, or ABEC transshipments to Iran must be licensed by accessories in $ value 7T or ISO Standard Class 4 or better (or the Department of Treasury, Office of Foreign Related Controls: Piping, fittings, and valves equivalents) and having any of the following Assets Control. (See § 742.8 and § 746.7 of are also subject to the export licensing characteristics. the EAR for additional information on this authority of the Nuclear Regulatory a.1. Manufactured for use at operating requirement.) temperatures above 573 K (300° C) either by Commission. (See 10 CFR part 110.) License Exceptions using special materials or by special heat Related Definitions: N/A LVS: N/A Items: a. Pressure tube, pipe, and fittings of treatment; or a.2. With lubricating elements or GBS: N/A 200 mm (8 inches) or more inside diameter, CIV: N/A and suitable for operation at pressures of 3.4 component modifications that, according to List of Items Controlled Mpa (500 psi) or greater; the manufacturer’s specifications, are b. Pipe valves having all of the following specially designed to enable the bearings to Unit: $ value characteristics: operate at speeds exceeding 2.3 million DN. Related Controls: N/A b. Solid tapered roller bearings, having b.1. A pipe size connection of 8 inches or Related Definitions: N/A tolerances specified by the manufacturer in more inside diameter; Items: The list of items controlled is accordance with ANSI/AFBMA Class 00 b.2. Rated at 1,500 psi or more; contained in the ECCN heading (inch) or Class A (metric) or better (or c. Parts, n.e.s. equivalents) and having either of the B. Test, Inspection and Production Equipment 2A293 Pumps designed to move molten following characteristics. metals by electromagnetic forces. b.1. With lubricating elements or Notes for Category 2B: 1. Secondary component modifications that, according to parallel contouring axes (e.g., the w-axis on License Requirements the manufacturer’s specifications, are horizontal boring mills or a secondary rotary Reason for Control: NP, AT specially designed to enable the bearings to axis the center line of which is parallel to the

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Axis nomenclature shall be in exceeding 5,000 mm and specially designed control’’; components therefor. accordance with International Standard ISO Note: 2B001.a does not control turning 841, ‘‘Numerical Control Machines—Axis 2B003 ``Numerically controlled'' or manual and Motion Nomenclature’’. machines specially designed for the production of contact lenses. machine tools, and specially designed 3. For the purposes of 2B001 to 2B009 a components, controls and accessories ‘‘tilting spindle’’ is counted as a rotary axis. b. Machine tools for milling, having any of therefor, specially designed for the shaving, 4. Guaranteed positioning accuracy levels the following characteristics: finishing, grinding or honing of hardened instead of individual test protocols may be b.1.a. Positioning accuracy with all (R = 40 or more) spur, helical and double- compensations available of less (better) than c used for each machine tool model using the µ helical gears with a pitch diameter agreed ISO test procedure. 6 m along any linear axis (overall exceeding 1,250 mm and a face width of 5. The positioning accuracy of positioning); and 15% of pitch diameter or larger finished to b.1.b. Three linear axes plus one rotary axis ‘‘numerically controlled’’ machine tools is to a quality of AGMA 14 or better (equivalent which can be coordinated simultaneously for be determined and presented in accordance to ISO 1328 class 3). ‘‘contouring control’’; with ISO 230/2. b.2. Five or more axes which can be License Requirements 2B001 Machine tools and any combination coordinated simultaneously for ‘‘contouring Reason for Control: NS, AT thereof, for removing (or cutting) metals, control’’; or ceramics or ``composites'', which, b.3. A positioning accuracy for jig boring Control(s) County Chart machines, with all compensations available, according to the manufacturer's technical µ specification, can be equipped with of less (better) than 4 m along any linear NS applies to entire entry NS Column 2 electronic devices for ``numerical control''. axis (overall positioning); AT applies to entire entry AT Column 1 c. Machine tools for grinding, having any License Requirement Notes: See § 743.1 of License Requirements of the following characteristics: the EAR for reporting requirements for c.1.a. Positioning accuracy with all Reason for Control: NS, NP, AT exports under License Exceptions. compensations available of less (better) than Control(s) Country Chart 4 µm along any linear axis (overall License Exceptions positioning); and LVS: $5000 NS applies to entire entry NS Column 2 c.1.b. Three or more axes which can be GBS: N/A NP applies to 2B001.a,b,c, NP Column 1 coordinated simultaneously for ‘‘contouring CIV: N/A and d, EXCEPT: (1) control’’; or List of Items Controlled turning machines under c.2. Five or more axes which can be Unit: Equipment in number; parts and 2B001.a with a capacity coordinated simultaneously for ‘‘contouring accessories in $ value equal to or less than 35 control’’; Related Controls: See also 2B993 mm diameter; (2) bar Notes: 2B001.c does not control grinding Related Definitions: N/A machines (Swissturn), machines, as follows: Items: The list of items controlled is limited to machining 1. Cylindrical external, internal, and contained in the ECCN heading. only bar feed through, if external-internal grinding machines having maximum bar diameter all the following characteristics: 2B004 Hot ``isostatic presses'', having all is equal to or less than a. Limited to cylindrical grinding; and of the following characteristics described in 42 mm and there is no b. Limited to a maximum workpiece the List of Items Controlled, and specially capability of mounting capacity of 150 mm outside diameter or designed dies, molds, components, chucks. (Machines may length. accessories and controls therefor. have drilling and/or 2. Machines designed specifically as jig License Requirements milling capabilities for grinders having any of the following machining parts with characteristics: Reason for Control: NS, MT, NP, AT diameters less than 42 a. The c-axis is used to maintain the mm); or (3) milling ma- grinding wheel normal to the work surface; Control(s) Country Chart chines under 2B001.b. or NS applies to entire entry NS Column 2 with x-axis travel great- b. The a-axis is configured to grind barrel MT applies to entire entry MT Column 1 er than two meters and cams. NP applies to entire entry, NP Column 1 overall ‘‘positioning ac- 3. Tool or cutter grinding machines except 2B004.b.3 and curacy’’ on the x-axis shipped as complete systems with ‘‘software’’ presses with tempera- more (worse) than 0.030 specially designed for the production of tools tures exceeding 1,733K, mm. or cutters. and pressure below 69 AT applies to entire entry AT Column 1 4. Crank shaft or cam shaft grinding machines. MPa. License Requirement Notes: See § 743.1 of 5. Surface grinders. AT applies to entire entry AT Column 1 the EAR for reporting requirements for d. Electrical discharge machines (EDM) of License Exceptions exports under License Exceptions. the non-wire type which have two or more LVS: N/A License Exceptions rotary axes which can be coordinated GBS: N/A LVS: N/A simultaneously for ‘‘contouring control’’; CIV: N/A e. Machine tools for removing metals, GBS: N/A List of Items Controlled CIV: N/A ceramics or ‘‘composites’’: e.1. By means of: Unit: Equipment in number; parts and List of Items Controlled e.1.a. Water or other liquid jets, including accessories in $ value Unit: Equipment in number; parts and those employing abrasive additives; Related Controls: See also 2B104 and 2B204 accessories in $ value e.1.b. Electron beam; or Related Definitions: N/A Related Controls: See also 2B290 and 2B991 e.1.c. ‘‘Laser’’ beam; and Items: a. A controlled thermal environment Related Definitions: N/A e.2. Having two or more rotary axes which: within the closed cavity and possessing a Items: a. Machine tools for turning, having all e.2.a. Can be coordinated simultaneously chamber cavity with an inside diameter of of the following characteristics: for ‘‘contouring control’’; and 406 mm or more; and

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b. Any of the following: evaporant stream to control the deposition b.1.b. Linear voltage differential b.1. A maximum working pressure rate of a coating containing two or more transformer systems having all of the exceeding 207 MPa; elements; following characteristics: b.2. A controlled thermal environment d. ‘‘Stored program controlled’’ plasma b.1.b.1. ‘‘Linearity’’ equal to or less (better) exceeding 1,773 K (1,500° C); or spraying production equipment having any than 0.1% within a measuring range up to 5 b.3. A facility for hydrocarbon of the following characteristics: mm; and impregnation and removal of resultant d.1. Operating at reduced pressure b.1.b.2. Drift equal to or less (better) than gaseous degradation products. controlled atmosphere (equal or less than 10 0.1% per day at a standard ambient test room ± Technical Note: The inside chamber kPa measured above and within 300 mm of temperature 1 K; or dimension is that of the chamber in which the gun nozzle exit) in a vacuum chamber b.1.c. Measuring systems having all of the both the working temperature and the capable of evacuation down to 0.01 Pa prior following: working pressure are achieved and does not to the spraying process; or b.1.c.1. Containing a ‘‘laser’’; and include fixtures. That dimension will be the b.1.c.2. Maintaining, for at least 12 hours, d.2. Incorporating in situ coating thickness ± smaller of either the inside diameter of the control; over a temperature range of 1 K around a standard temperature and at a standard pressure chamber or the inside diameter of e. ‘‘Stored program controlled’’ sputter pressure, all of the following: the insulated furnace chamber, depending on deposition production equipment capable of which of the two chambers is located inside b.1.c.2.a. A ‘‘resolution’’ over their full current densities of 0.1 mA/mm2 or higher at µ the other. µ scale of 0.1 m or less (better); and a deposition rate 15 m/h or more; b.1.c.2.b. A ‘‘measurement uncertainty’’ 2B005 Equipment specially designed for f. ‘‘Stored program controlled’’ cathodic arc equal to or less (better) than (0.2 + L/2,000) the deposition, processing and in-process deposition equipment incorporating a grid of µm (L is the measured length in mm); electromagnets for steering control of the arc control of inorganic overlays, coatings and Note: 2B006.b.1 does not control spot on the cathode; surface modifications for non-electronic measuring interferometer systems, without g. ‘‘Stored program controlled’’ ion plating substrates, by processes shown in the closed or open loop feedback, containing a production equipment allowing for the in Table and associated Notes following ‘‘laser’’ to measure slide movement errors of 2E003.f, and specially designed automated situ measurement of any of the following: machine-tools, dimensional inspection handling, positioning, manipulation and g.1. Coating thickness on the substrate and machines or similar equipment. control components therefor. rate control; or b.2. Angular measuring instruments having g.2. Optical characteristics. License Requirements an ‘‘angular position deviation’’ equal to or ° Reason for Control: NS, AT 2B006 Dimensional inspection or less (better) than 0.00025 ; measuring systems and equipment, as Note: 2B006.b.2 does not control optical Control(s) Country Chart follows (see List of Items Controlled). instruments, such as autocollimators, using License Requirements collimated light to detect angular NS applies to entire entry NS Column 2 displacement of a mirror. Reason for Control: NS, NP, AT AT applies to entire entry AT Column 1 c. Equipment for measuring surface License Exceptions irregularities, by measuring optical scatter as Control(s) Country Chart LVS: $1000 a function of angle, with a sensitivity of 0.5 nm or less (better). GBS: N/A NS applies to entire entry NS Column 2 CIV: N/A NP applies to 2B006.a and NP Column 1 2B007 ``Robots'' having any of the List of Items Controlled .b. following characteristics described in the Unit: $ value AT applies to entire entry AT Column 1 List of Items Controlled and specially Related Controls: This entry does not control License Exceptions designed controllers and ``end-effectors'' chemical vapor deposition, cathodic arc, therefor. sputter deposition, ion plating or ion LVS: N/A License Requirements implantation equipment specially designed GBS: N/A for cutting or machining tools. CIV: N/A Reason for Control: NS, NP, AT Related Definitions: N/A List of Items Controlled Control(s) Country Chart Items: a. ‘‘Stored program controlled’’ Unit: Equipment in number chemical vapor deposition (CVD) production Related Controls: See also 2B206 and 2B996. equipment having all of the following: NS applies to entire entry NS Column 2 Related Definition: (1) Machine tools which NP applies to 2B007.c if NP Column 1 a.1. Process modified for one of the can be used as measuring machines are following: specially designed or controlled if they meet or exceed the rated as radiation hard- a.1.a. Pulsating CVD; criteria specified for the machine tool a.1.b. Controlled nucleation thermal ened to withstand great- function or the measuring machine er than 5 X 104 grays(Si) decomposition (CNTD); or function. (2) A machine described by this a.1.c. Plasma enhanced or plasma assisted without operational deg- entry is controlled if it exceeds the control CVD; and radation; to 2B007.b; threshold anywhere within its operating a.2. Any of the following: and to specially de- range. a.2.a. Incorporating high vacuum (equal to signed controllers and or less than 0.01 Pa) rotating seals; or Items: a. Computer controlled, ‘‘numerically ‘‘end-effectors’’ therefor. a.2.b. Incorporating in situ coating controlled’’ or ‘‘stored program controlled’’ AT applies to entire entry AT Column 1 dimensional inspection machines, having a thickness control; License Exceptions three dimensional length (volumetric) b. ‘‘Stored program controlled’’ ion LVS: $5000, except 2B007.b and .c implantation production equipment having ‘‘measurement uncertainty’’ equal to or less µ GBS: N/A beam currents of 5 mA or more; (better) than (1.7 + L/1,000) m (L is the c. ‘‘Stored program controlled’’ electron measured length in mm) tested according to CIV: N/A beam physical vapor (EB-PVD) production ISO 10360–2; List of Items Controlled equipment incorporating all of the following: b. Linear and angular displacement Unit: $ value c.1. Power systems rated for over 80 kW; measuring instruments, as follows: Related Controls: See also 2B207 and 2B997 c.2. A liquid pool level ‘‘laser’’ control b.1. Linear measuring instruments having Related Definitions: N/A system which regulates precisely the ingots any of the following: Items: a. Capable in real time of full three- feed rate; and b.1.a. Non-contact type measuring systems dimensional image processing or three- c.3. A computer controlled rate monitor with a ‘‘resolution’’ equal to or less (better) dimensional scene analysis to generate or operating on the principle of photo- than 0.2 µm within a measuring range up to modify ‘‘programs’’ or to generate or modify luminescence of the ionized atoms in the 0.2 mm; numerical program data;

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Note: The scene analysis limitation does Control(s) Country Chart plate drilling machines, other than radial not include approximation of the third drilling machines; dimension by viewing at a given angle, or NP applies to flow-form- NP Column 1 b. Armor plate planing machines; limited grey scale interpretation for the ing machines; and spin- c. Armor plate quenching presses; perception of depth or texture for the forming machines capa- d. Centrifugal casting machines capable of approved tasks (21⁄2 D). ble of flow-forming casting tubes 6 feet (183 cm) or more in b. Specially designed to comply with functions. length, with a wall thickness of 2 inches (5 national safety standards applicable to AT applies to entire entry AT Column 1 cm) and over; explosive munitions environments; e. Gun barrel rifling and broaching License Exceptions c. Specially designed or rated as radiation- machines, and tools therefor; hardened to withstand greater than 5 × 103 LVS: N/A f. Gun barrel rifling machines; Gy (Si) without operational degradation; or GBS: N/A g. Gun barrel trepanning machines; d. Specially designed to operate at CIV: N/A h. Gun boring and turning machines; altitudes exceeding 30,000 m. List of Items Controlled i. Gun honing machines of 6 feet (183 cm) Unit: $ value stroke or more; 2B008 Assemblies, units or inserts Related Controls: See also 2B109 for j. Gun jump screw lathes; specially designed for machine tools, or for additional flow-forming machines for MT k. Gun rifling machines; equipment controlled by 2B006 or 2B007, as and NP reasons. See also 2B209 for l. Gun straightening presses; follows (see List of Items Controlled). additional flow-forming machines m. Induction hardening machines for tank License Requirements controlled for NP reasons. turret rings and sprockets; Reason for Control: NS, AT Related Definitions: Machines combining the n. Jigs and fixtures and other metal- function of spin-forming and flow-forming working implements or accessories of the Control(s) Country Chart are for the purpose of 2B009 regarded as kinds exclusively designed for use in the flow-forming machines. manufacture of firearms, ordnance, and other NS applies to entire entry NS Column 2 Items: a. Two or more controlled axes of stores and appliances for land, sea, or aerial AT applies to entire entry AT Column 1 which at least two can be coordinated warfare; simultaneously for ‘‘contouring control’’; and License Exceptions o. Small arms chambering machines; b. A roller force more than 60 kN. p. Small arms deep hole drilling machines LVS: N/A and drills therefor; GBS: N/A 2B018 Equipment on the International q. Small arms rifling machines; CIV: N/A Munitions List. r. Small arms spill boring machines; List of Items Controlled License Requirements s. Tank turret bearing grinding machines. Unit: $ value Reason for Control: NS, MT, RS, AT Advisory Note: Licenses are likely to be Related Controls: See also 2B998 approved, as administrative exceptions, for Related Definition: N/A Control(s) Country Chart export and reexport to Country Group D:1 of Items: a. Linear position feedback units (e.g., equipment used to determine the safety data inductive type devices, graduated scales, NS applies to entire entry NS Column 1 of explosives, as required by the International infrared systems or ‘‘laser’’ systems) having MT applies to specialized MT Column 1 Convention on the Transport of Dangerous an overall ‘‘accuracy’’ less (better) than (800 machinery, equipment, Goods (C.I.M.) articles 3 and 4 in Annex 1 + (600 × L × 10¥3)) nm (L equals the effective and gear for producing RID, provided that such equipment will be length in mm); rocket systems (includ- used only by the railway authorities of ing ballistic missile sys- Note: For ‘‘laser’’ systems see also Note to current C.I.M. members, or by the tems, space launch ve- 2B006.b.1. Government-accredited testing facilities in hicles, and sounding b. Rotary position feedback units (e.g., those countries, for the testing of explosives rockets) and unmanned inductive type devices, scales, infrared to transport safety standards, of the following air vehicle systems (in- systems or ‘‘laser’’ systems) having an description: cluding cruise missile ‘‘accuracy’’ less (better) than 0.00025°; a. Equipment for determining the ignition systems, target drones, Note: For ‘‘laser’’ systems see also Note to and deflagration temperatures; and reconnaissance 2B006.b.1. b. Equipment for steel-shell tests; drones) usable in sys- c. Drophammers not exceeding 20 kg in c. ‘‘Compound rotary tables’’ and ‘‘tilting tems that are controlled weight for determining the sensitivity of spindles’’, capable of upgrading, according to for MT reasons includ- explosives to shock; the manufacturer’s specifications, machine ing their propulsion sys- d. Equipment for determining the friction tools to or above the levels controlled by tems and components, sensitivity of explosives when exposed to 2B001 to 2B009. and pyrolytic deposition charges not exceeding 36 kg in weight. 2B009 Spin-forming machines and flow- and densification equip- forming machines, which, according to the ment. 2B104 Equipment and process controls manufacturer's technical specifications, RS applies to entire entry RS Column 2 designed or modified for densification and can be equipped with ``numerical control'' AT applies to entire entry AT Column 1 pyrolysis of structural composite rocket units or a computer control and having all License Exceptions nozzles and reentry vehicle nose tips. the characteristics (see List of Items LVS: $3000 License Requirements Controlled). GBS: Yes for Advisory Note in this entry to Reason for Control: MT, NP, AT License Requirements 2B018 Reason for Control: NS, MT, NP, AT List of Items Controlled Control(s) Country Chart Unit: Equipment in number; parts and Control(s) Country Chart accessories in $ value MT applies to entire entry MT Column 1 Related Controls: N/A NP applies to 2B104.a NP Column 1 NS applies to entire entry NS Column 2 Related Definitions: N/A AT applies to entire entry AT Column 1 MT applies to spin-form- MT Column 1 Items: Specialized machinery, equipment, License Exceptions ing machines the ma- gear, and specially designed parts and LVS: N/A chines combining the accessories therefor, including but not GBS: N/A functions of spin-form- limited to the following, that are specially CIV: N/A ing and flow-forming; designed for the examination, manufacture, and flow-forming ma- testing, and checking of arms, appliances, List of Items Controlled chines. machines, and implements of war: a. Armor Unit: Equipment in number

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Related Controls: The only ‘‘isostatic Control(s) Country Chart List of Items Controlled presses’’ and furnaces controlled by 2B104 Unit: Equipment in number; parts and are: (a) ‘‘Isostatic presses’’, other than those NP applies to electro- NP Column 1 accessories in $ value controlled by 2B004, having all the dynamic vibration test Related Controls: See also 2B290, 2B991, and following characteristics: (1) Maximum systems, employing 2D002 ‘‘Numerical control’’ units are working pressure of 69 MPa or greater; (2) feedback or closed loop controlled by their associated ‘‘software’’. Designed to achieve and maintain a control techniques and Related Definition: N/A incorporating a digital thermal environment of 873 K (600° C) or Items: a. Machine tools for milling, having controller, capable of vi- greater; and (3) Possessing a chamber any of the following characteristics: brating at 10 g RMS or cavity with an diameter of 254 mm or a.1. ‘‘Positioning accuracies’’ with all more between 20 Hz compensations available less (better) than greater; (b) CVD Furnaces designed or and 2000 Hz and im- 0.006 mm along any linear axis (positioning); modified for the densification of carbon- parting forces of 50 kN or carbon composites. (11,250 lbs.) measured a.2. Two or more contouring rotary axes. Related Definitions: N/A ‘‘bare table’’, or greater. Items: The list of items controlled is AT applies to entire entry AT Column 1 Note: 2B201.a. does not control milling having the following characteristics: contained in the ECCN heading. License Exceptions a. X-axis travel greater than 2 m; LVS: N/A 2B109 Flow-forming machines, other than b. Overall ‘‘positioning accuracy’’ on the x- GBS: N/A those controlled by 2B009, and specially axis more (worse) than 0.030 mm. CIV: N/A designed components therefor. b. Machine tools for grinding, having any List of Items Controlled License Requirements of the following characteristics: Unit: $ value b.1. ‘‘Positioning accuracies’’ with all Reason for Control: MT, NP, AT Related Controls: See also 9B990 compensations available less (better) than Related Definitions: (1) The term ‘‘digital 0.004 mm along any linear axis (positioning); Control(s) Country Chart control’’ refers to equipment, the functions or of which are, partly or entirely, b.2. Two or more contouring rotary axes. MT applies to entire entry MT Column 1 automatically controlled by stored and Note: 2B201.b does not control the NP applies to entire entry NP Column 1 digitally coded electrical signals. (2) The following grinding machines: AT applies to entire entry AT Column 1 term ‘‘bare table’’ means a flat table, or surface, with no fixture or fitting. a. Cylindrical external, internal, and License Exceptions Items: a. Vibration test systems employing external-internal grinding machines having LVS: N/A feedback or closed loop techniques and all of the following characteristics: GBS: N/A incorporating a digital controller, capable of 1. Limited to cylindrical grinding; CIV: N/A vibrating a system at 10 g RMS or more over 2. A maximum workpiece outside diameter the entire range 20 Hz to 2,000 Hz and List of Items Controlled or length of 150 mm; imparting forces of 50 kN (11,250 lbs.), 3. Not more than two axes that can be Unit: Equipment in number; parts and measured ‘‘bare table’’, or greater; simultaneously for ‘‘contouring control’’; and accessories in $ value. b. Digital controllers, combined with 4. No contouring c axis; Related Controls: See also 2B009 and 2B209. specially designed vibration test ‘‘software’’, b. Jig grinders with axes limited to x, y, c Related Definition: This entry controls only with a real-time bandwidth greater than 5 and a where c-axis is used to maintain the kHz and designed for use with vibration test spin-forming machines combining the grinding wheel normal to the work surface, systems described in 2B116.a; functions of spin-forming and flow-forming and the a axis is configured to grind barrel c. Vibration thrusters (shaker units), with and flow forming machines. cams; or without associated amplifiers, capable of Items: a. According to the manufacturer’s imparting a force of 50 kN (11,250 lbs.), c. Tool or cutter grinding machines with technical specification, can be equipped with measured ‘‘bare table’’, or greater, and usable ‘‘software’’ specially designed for the ‘‘numerical control’’ units or a computer in vibration test systems described in production of tools or cutters; or control, even when not equipped with such 2B116.a; d. Crankshaft or camshaft grinding units; and d. Test piece support structures and machines. b. With more than two axes which can be electronic units designed to combine c. Machines for turning, that have coordinated simultaneously for ‘‘contouring multiple shaker units into a complete shaker ‘‘positioning accuracies’’ with all control.’’ system capable of providing an effective compensations available less (better) than combined force of 50 kN, measured ‘‘bare 0.006 mm along any linear axis (overall Technical Notes: 1. Machines combining table’’, or greater, and usable in vibration test positioning) for machines capable of the function of spin-forming and flow- systems described in 2B116.a. machining diameters greater than 35 mm. forming are for the purpose of 2B109 Note: Bar machines (Swissturn), limited to regarded as flow-forming machines. 2B201 Machine tools, other than those controlled by 2B001 for removing or cutting machining only bar feed thru, are excluded 2. 2B109 does not control machines that if maximum bar diameter is equal to or less are not usable in the production of metals, ceramics or ``composites'', which, according to manufacturer's technical than 42 mm and there is no capability of propulsion components and equipment (e.g. specification, can be equipped with mounting chucks. Machines may have motor cases) for systems in 9A005, 9A007.a, electronic for simultaneous ``contouring drilling and/or milling capabilities for or 9A105. control'' in two or more axes. machining parts with diameters less than 42 mm. 2B116 Vibration test systems, equipment License Requirements and components therefor, as follows (see Reason for Control: NP, AT 2B204 ``Isostatic presses,'' not controlled List of Items Controlled). by 2B004 or 2B104, capable of achieving a maximum working pressure of 69 Mpa License Requirements Control(s) Country Chart (10,000 psi) or greater and having a Reason for Control: MT, NP, AT NP applies to entire entry NP Column 1 chamber cavity with an inside diameter in AT applies to entire entry AT Column 1 excess of 152 mm (6 inches) and specially Control(s) Country Chart License Exceptions designed dies, molds, and controls therefor. MT applies to entire entry MT Column 1 LVS: N/A GBS: N/A License Requirements CIV: N/A Reason for Control: NP, AT

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Control(s) Country Chart 2B207 ``Robots'' or ``end-effectors'', other Control(s) Country Chart than those controlled by 2B007, specially NP applies to entire entry NP Column 1 designed to comply with national safety NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 standards applicable to handling high AT applies to entire entry AT Column 1 explosives (for example, meeting code License Exceptions ratings for high explosives) and specially License Exceptions LVS: N/A designed controllers therefor. LVS: N/A GBS: N/A GBS: N/A License Requirements CIV: N/A CIV: N/A Reason for Control: NP, AT List of Items Controlled List of Items Controlled Unit: $ value. Unit: Equipment in number Control(s) Country Chart Related Controls: N/A Related Controls: N/A. Related Definition: The inside chamber Related Definition: Remote manipulators NP applies to entire entry NP Column 1 provide translation of human operator dimension is that of the chamber in which AT applies to entire entry AT Column 1 both the working temperature and working actions to a remote operating arm and pressure are achieved and does not include License Exceptions terminal fixture. They may be of a ‘‘master/ fixtures. That dimension will be the LVS: N/A slave’’ type or operated by joystick or keypad. smaller either the inside diameter of the GBS: N/A Items: a. Having a capability of penetrating pressure chamber or the inside diameter of CIV: N/A the insulated chamber, depending on 0.6 m or more of hot cell wall (operation); or List of Items Controlled which of the two chambers is located b. Having a capability of bridging over the inside the other. Unit: $ value top of a hot cell wall with a thickness of 0.6 Items: The list of items controlled is Related Controls: N/A m or more (over-the-wall operation). Related Definitions: N/A contained in the ECCN heading. 2B226 Vacuum or controlled environment Items: The list of items controlled is (inert gas) induction furnaces capable of 2B206 Dimensional inspection machines, contained in the ECCN heading. devices or systems, other than those operation above 1,123 K (850≥ C) and having induction coils 600 mm or less in diameter, controlled by 2B006, as follows (see List of 2B209 Flow forming machines, or spin and designed for power inputs of 5 kW or Items Controlled). forming machines capable of flow forming more, and power supplies specially functions, other than those controlled by License Requirements designed therefor with a specified power 2B009 or 2B109, or mandrels, as follows Reason for Control: NP, AT output of 5 kW or more. (see List of Items Controlled). License Requirements Control(s) Country Chart License Requirements Reason for Control: NP, AT Reason for Control: NP, AT NP applies to entire entry NP Column 1 Control(s) Country Chart AT applies to entire entry AT Column 1 Control(s) Country Chart License Exceptions NP applies to entire entry NP Column 1 LVS: N/A NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 GBS: N/A License Exceptions CIV: N/A License Exceptions LVS: N/A List of Items Controlled LVS: N/A GBS: N/A Unit: Equipment in number; parts and GBS: N/A CIV: N/A accessories in $ value. CIV: N/A List of Items Controlled Related Controls: See also 2B992. List of Items Controlled Related Definition: (1) Machine tools that can Unit: $ value. be used as measuring machines are Unit: Equipment in number; parts and Related Controls: See also Category 3B. This controlled if they meet or exceed the accessories in $ value. entry does not control furnaces designed criteria specified for the machine function Related Controls: N/A. for the processing of semiconductor wafers. or the measuring machine function. (2) A Related Definition: This entry includes Related Definition: N/A machine controlled by 2B206 is controlled machines which have only a single roller Items: The list of items controlled is if it exceeds the control threshold designed to deform metal plus two contained in the ECCN heading. anywhere within its operating range. (3) auxiliary rollers which support the 2B227 Vacuum and controlled atmosphere The probe used in determining the mandrel, but do not participate directly in metallurgical melting and casting furnaces measurement uncertainty of a dimensional the deformation process. and specially configured computer control inspection system shall be described in Items: a. Machines having any of the and monitoring systems therefor. VDI/VDE 2617 parts 2, 3 and 4. following: Items: a. Computer controlled or numerically a.1. Having three or more rollers (active or License Requirements controlled dimensional inspection machines guiding); and Reason for Control: NP, AT having both of the following characteristics: a.2. According to the manufacturer’s a.1. Two or more axes; and technical specification can be equipped with Control(s) Country Chart a.2. A one-dimensional length ‘‘numerical control’’ units or a computer NP applies to entire entry NP Column 1 ‘‘measurement uncertainty’’ equal to or less control. µ AT applies to entire entry AT Column 1 (better) than (1.25 + L/1000) m tested with b. Rotor-forming mandrels designed to a probe of ‘‘accuracy’’ of less (better) than 0.2 form cylindrical rotors of inside diameter License Exceptions µm (L is the measured length millimeters) between 75 mm (3 in.) and 400 mm (16 in.). (Ref.:VDI/VDE 2617 Parts 1 and 2); LVS: N/A b. Systems for simultaneously linear- GBS: N/A 2B225 Remote manipulators that can be CIV: N/A angular inspection of hemishells having both used to provide remote actions in List of Items Controlled of the following characteristics: radiochemical separation operations and b.1. ‘‘Measurement uncertainty’’ along any hot cells, as follows (see List of Items Unit: $ value µ linear axis equal to less (better) than 3.5 m Controlled). Related Controls: N/A per 5 mm; and Related Definition: N/A b.2. ‘‘Angular position deviation’’ equal to License Requirements Items: a. Arc remelt and casting furnaces or less than 0.02°. Reason for Control: NP, AT with consumable electrode capacities

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Capable of balancing speed of The pumping speed is determined at the revolution more than 5000 r.p.m.; measurement point with nitrogen gas or 2B228 Rotor fabrication and assembly b. Centrifugal balancing machines designed air. equipment and bellows-forming mandrels for balancing hollow cylindrical rotor Items: The list of items controlled is and dies, as follows (see List of Items components and having all of the following contained in the ECCN heading. Controlled). characteristics: 2B232 Multistage light gas guns or other License Requirements b.1. A journal diameter of 75 mm or more; b.2. Mass capability of from 0.9 to 23 kg; high-velocity gun systems (coil, Reason for Control: NP, AT b.3. Capable of balancing to a residual electromagnetic, electrothermal, or other imbalance of 0.01 kg mm/kg per plane or advanced systems) capable of accelerating Control(s) Country Chart better; and projectiles to 2 km/s or greater. b.4. Belt drive type. NP applies to entire entry NP Column 1 License Requirements AT applies to entire entry AT Column 1 2B230 ``Pressure transducers'' which are Reason for Control: NP, AT License Exceptions capable of measuring absolute pressure at Control(s) Country Chart LVS: N/A any point in the range 0 to 13 kPa, with pressure sensing elements made of or GBS: N/A NP applies to entire entry NP Column 1 CIV: N/A protected by nickel, nickel alloys with more than 60% nickel by weight, aluminum or AT applies to entire entry AT Column 1 List of Items Controlled aluminum alloys, having any of the License Exceptions Unit: $ value characteristics (see List of Items LVS: N/A Related Controls: N/A Controlled). GBS: N/A Related Definitions: N/A License Requirements CIV: N/A Items: a. Rotor assembly equipment for assembly of gas centrifuge rotor sections, Reason for Control: NP, AT List of Items Controlled baffles and end caps, including associated Unit: $ value. precision mandrels, clamps and shrink fit Control(s) Country Chart Related Controls: N/A. machines; Related Definitions: N/A. b. Rotor straightening equipment for NP applies to entire entry NP Column 1 Items: The list of items controlled is alignment of gas centrifuge rotor sections to AT applies to entire entry AT Column 1 contained in the ECCN heading. a common axis; License Exceptions 2B290 ``Numerically controlled'' machine Technical Note: Normally such equipment LVS: N/A tools not controlled by 2B001. will consist of precision measuring probes GBS: N/A License Requirements linked to a computer that subsequently CIV: N/A Reason for Control: NP, AT controls the action of, for example, List of Items Controlled pneumatic rams used for aligning the rotor Unit: $ value. tube sections. Control(s) Country Chart Related Controls: N/A c. Bellows-forming mandrels and dies for Related Definitions: (1) Pressure transducers NP applies to entire entry NP Column 2 producing single-convolution bellows are devices that convert pressure AT applies to entire entry AT Column 1 (bellows made of high-strength aluminum measurements into an electrical signal. (2) alloys, maraging steel or high strength For the purposes of this entry, ‘‘accuracy’’ License Exceptions filamentary materials). The bellows have all includes non-linearity, hysteresis and LVS: N/A of the following dimensions: repeatability at ambient temperature. GBS: N/A c.1. 75 mm to 400 mm inside diameter; Items: a. A full scale of less than 13 kPa and CIV: N/A c.2. 12.7 mm or more in length; and an ‘‘accuracy’’ of better than +/¥1% List of Items Controlled c.3. Single convolution depth more than 2 (full¥scale); or Unit: Equipment in number; parts and mm. b. A full scale of 13 kPa or greater and an accessories in $ value ‘‘accuracy’’ of better than +/¥130 Pa. 2B229 Centrifugal multiplane balancing Related Controls: N/A machines, fixed or portable, horizontal or 2B231 Vacuum pumps with an input throat Related Definition: N/A Items: a. Turning machines or combination vertical, as follows (see List of Items size of 380 mm or greater with a pumping turning/milling machines that are capable of Controlled). speed of 15,000 liters/s or greater and machining diameters greater than 2.5 meters. capable of producing an ultimate vacuum License Requirements b. Reserved. better than 10¥4 Torr (1.33 10¥4 mbar). Reason for Control: NP, AT µ License Requirements 2B350 Chemical manufacturing facilities Control(s) Country Chart Reason for Control: NP, AT and equipment, as follows (see List of Items Controlled). NP applies to entire entry NP Column 1 Control(s) Country Chart License Requirements AT applies to entire entry AT Column 1 Reason for Control: CB, AT License Exceptions NP applies to entire entry NP Column 1 AT applies to entire entry AT Column 1 LVS: N/A Control(s) Country Chart GBS: N/A License Exceptions CIV: N/A LVS: N/A CB applies to entire entry CB Column 3 AT applies to entire entry AT Column 1 List of Items Controlled GBS: N/A Unit: $ value CIV: N/A License Exceptions Related Controls: N/A List of Items Controlled LVS: N/A Related Definitions: N/A Unit: $ value GBS: N/A Items: a. Centrifugal balancing machines Related Controls: Vacuum pumps for gaseous CIV: N/A designed for balancing flexible rotors having diffusion separation process are subject to List of Items Controlled

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Unit: Equipment in number. d.4. Graphite; i.2. Ceramics; Related Controls: The controls in this entry d.5. Nickel or alloys with more than 40% i.3. Ferrosilicon; do not apply to equipment that is: (a) nickel by weight; i.4. Fluoropolymers; specially designed for use in civil d.6. Tantalum or tantalum alloys; i.5. Glass (including vitrified or enamelled applications (e.g., food processing, pulp d.7. Titanium or titanium alloys; or coatings or glass lining); and paper processing, or water d.8. Zirconium or zirconium alloys; i.6. Graphite; purification); and (b) inappropriate, by the e. Distillation or absorption columns of i.7. Nickel or alloys with more than 40% nature of its design, for use in storing, internal diameter greater than 0.1 m, where nickel by weight; processing, producing or conducting and all surfaces that come in direct contact with i.8. Tantalum or tantalum alloys; controlling the flow of chemical weapons the chemical(s) being processed are made i.9. Titanium or titanium alloys, or precursors controlled by 1C350. from any of the following materials: i.10. Zirconium or zirconium alloys; Related Definitions: For purposes of this e.1. Alloys with more than 25% nickel and j. Incinerators designed to destroy chemical entry the term ‘‘chemical warfare agents’’ 20% chromium by weight; warfare agents, or chemical weapons are those agents subject to the export e.2. Fluoropolymers; precursors controlled by 1C350, having licensing authority of the U.S. Department e.3. Glass (including vitrified or enamelled specially designed waste supply systems, of State, Office of Defense Trade Controls. coatings or glass lining); special handling facilities and an average (See 22 CFR part 121) e.4. Graphite; combustion chamber temperature greater Items: a. Reaction vessels or reactors, with or e.5. Nickel or alloys with more than 40% than 1000°C in which all surfaces in the without agitators, with total internal nickel by weight; waste supply system that come into direct (geometric) volume greater than 0.1 m3 e.6. Tantalum or tantalum alloys; contact with the waste products are made (100 liters) and less than 20 m3 (20,000 e.7. Titanium or titanium alloys; or from or lined with any of the following liters), where all surfaces that come in e.8. Zirconium or zirconium alloys; materials: direct contact with the chemical(s) being f. Remotely operated filling equipment in j.1. Alloys with more than 25% nickel and processed or contained are made from any which all surfaces that come in direct contact 20% chromium by weight; of the following materials: with the chemical(s) being processed are j.2. Ceramics; or a.1. Alloys with more than 25% nickel and made from any of the following materials: j.3. Nickel or alloys with more than 40% 20% chromium by weight; f.1. Alloys with more than 25% nickels and nickel by weight. a.2. Fluoropolymers; 20% chromium by weight, or a.3. Glass (including vitrified or enamelled f.2. Nickel or alloys with more than 40% 2B351 Toxic gas monitoring systems and coating or glass lining); nickel by weight; dedicated detectors therefor. a.4. Nickel or alloys with more than 40% g. Multiple seal valves incorporating a leak License Requirements nickel by weight; detection port, bellows-seal valves, non- a.5. Tantalum or tantalum alloys; return (check) valves or diaphragm valves, in Reason for Control: CB, AT. a.6. Titanium or titanium alloys; or which all surfaces that come in to direct a.7. Zirconium or zirconium alloys; contact with the chemical(s) being processed Control(s) Country Chart b. Agitators for use in reaction vessels or or contained are made from any of the CB applies to entire entry CB Column 3 reactors where all surfaces of the agitator that following materials: AT applies to entire entry AT Column 1 come in direct contact with the chemical(s) g.1. Alloys with more than 25% nickel and being processed or contained are made from 20% chromium by weight; License Exceptions any of the following materials: g.2. Fluoropolymers; LVS: N/A b.1. Alloys with more than 25% nickel and g.3. Glass (including vitrified or enamelled GBS: N/A 20% chromium by weight; coatings or glass lining); CIV: N/A b.2. Fluoropolymers; g.4. Nickel or alloys with more than 40% List of Items Controlled b.3. Glass (including vitrified or enamelled nickel by weight; coatings or glass lining); g.5. Tantalum or tantalum alloys; Unit: Equipment in number b.4. Nickel or alloys with more than 40% g.6. Titanium or titanium alloys; or Related Controls: N/A nickel by weight; g.7. Zirconium or zirconium alloys; Related Definitions: N/A b.5. Tantalum or tantalum alloys; h. Multi-walled piping incorporating a leak Items: a. Designed for continuous operation b.6. Titanium or titanium alloys; or detection port, in which all surfaces that and usable for the detection of chemical b.7. Zirconium or zirconium alloys; come in direct contact with the chemical(s) warfare agents, chemicals controlled by c. Storage tanks, containers or receivers being processed or contained are made from 1C350 or organic compounds containing with a total internal (geometric) volume any of the following materials: phosphorus, sulphur, fluorine or chlorine, at 3 greater than 0.1 m3 (100 liters) where all h.1. Alloys with more than 25% nickel and concentrations of less than 0.3 mg/m ; or surfaces that come in direct contact with the 20% chromium by weight; b. Designed for the detection of chemical(s) being processed or contained are h.2. Fluoropolymers; cholinesterase-inhibiting activity. made from any of the following materials: h.3. Glass (including vitrified or enamelled 2B352 Equipment capable of use in c.1. Alloys with more than 25% nickel and coatings or glass lining); handling biological materials, as follows 20% chromium by weight; h.4. Graphite; (see List of Items Controlled). c.2. Fluoropolymers; h.5. Nickel or alloys with more than 40% c.3. Glass (including vitrified or enamelled nickel by weight; License Requirements coatings or glass lining); h.6. Tantalum or tantalum alloys; Reason for Control: CB, AT c.4. Nickel or alloys with more than 40% h.7. Titanium or titanium alloys; or nickel by weight; h.8. Zirconium or zirconium alloys; Control(s) Country Chart c.5. Tantalum or tantalum alloys; i. Multiple-seal, canned drive, magnetic c.6. Titanium or titanium alloys; or drive, bellows or diaphragm pumps, with CB applies to entire entry CB Column 3 c.7. Zirconium or zirconium alloys; manufacturer’s specified maximum flow-rate AT applies to entire entry AT Column 1 3 d. Heat exchangers or condensers with a greater than 0.6 m /hour, or vacuum pumps License Exceptions heat transfer surface area of less than 20 m2, with manufacturer’s specified maximum LVS: N/A where all surfaces that comes in direct flow-rate greater than 5 m3/hour (under contact with the chemical(s) being processed standard temperature (273 K (0°C)) and GBS: N/A are made from any of the following materials: pressure (101.3 kPa) conditions), in which all CIV: N/A d.1. Alloys with more than 25% nickel and surfaces that come into direct contact with List of Items Controlled 20% chromium by weight; the chemical(s) being processed are made Unit: Equipment in number d.2. Fluoropolymers; from any of the following materials: Related Controls: N/A d.3. Glass (including vitrified or enamelled i.1. Alloys with more than 25% nickel and Related Definitions: For purposes of this coatings or glass lining); 20% chromium by weight; entry, isolators include flexible isolators,

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dry boxes, anaerobic chambers and glove a.1. Having four interpolating axes that can Note: 2B991.d.1.b. applies to machine tools boxes. be coordinated simultaneously for for turning only. Items: a. Complete containment facilities at ‘‘contouring control’’; or d.1.c. ‘‘Run out’’ (out-of-true running) in P3 or P4 containment level; a.2. Having two or more axes that can be one revolution of the spindle less (better) Technical Note: P3 or P4 (BL3, BL4, L3, coordinated simultaneously for ‘‘contouring than 0.0006 mm total indicator reading (TIR); L4) containment levels are as specified in the control’’ and a minimum programmable d.1.d. The ‘‘positioning accuracies’’, with WHO Laboratory Biosafety Manual (Geneva, increment better (less) than 0.001 mm; all compensations available, are less (better) 1983). a.3. ‘‘Numerical control’’ units for machine than: 0.001° on any rotary axis; b. Fermenters capable of cultivation of tools having two, three or four interpolating d.2. Electrical discharge machines (EDM) pathogenic microorganisms, viruses, or for axes that can be coordinated simultaneously of the wire feed type that have five or more toxin production, without the propagation of for ‘‘contouring control’’, and capable of axes that can be coordinated simultaneously aerosols, having a capacity equal to or greater receiving directly (on-line) and processing for ‘‘contouring control’’. than 100 liters. computer-aided-design (CAD) data for 2B992 Non-``numerically controlled'' internal preparation of machine instructions; Technical Note: Fermenters include machine tools for generating optical quality or bioreactors, chemostats, and continuous-flow surfaces, and specially designed b. ‘‘Motion control boards’’ specially systems. components therefor. c. Centrifugal separators capable of the designed for machine tools and having any License Requirements continuous separation of pathogenic of the following characteristics: microorganisms, without the propagation of b.1. Interpolation in more than four axes; Reason for Control: AT aerosols, and having all of the following b.2. Capable of ‘‘real time processing’’ of characteristics: data to modify tool path, feed rate and Control(s) Country Chart c.1. A flow rate greater than 100 liters per spindle data, during the machining hour; operation, by any of the following: AT applies to entire entry AT Column 1 c.2. Components of polished stainless steel b.2.a. Automatic calculation and License Exceptions modification of part program data for or titanium; LVS: N/A machining in two or more axes by means of c.3. Double or multiple sealing joints GBS: N/A within the steam containment area; and measuring cycles and access to source data; CIV: N/A c.4. Capable of in situ steam sterilization in or List of Items Controlled a closed state. b.2.b. ‘‘Adaptive control’’ with more than Unit: Equipment in number Technical Note: Centrifugal separators one physical variable measured and Related Controls: N/A include decanters. processed by means of a computing model (strategy) to change one or more machining Related Definitions: N/A d. Cross-flow filtration equipment capable instructions to optimize the process. Items: a. Turning machines using a single of continuous separation of pathogenic b.3. Capable of receiving and processing point cutting tool and having all of the microorganisms, viruses, toxins, and cell following characteristics: cultures without the propagation of aerosols, CAD data for internal preparation of machine instructions; or a.1. Slide positioning accuracy less (better) having all of the following characteristics: than 0.0005 mm per 300 mm of travel; d.1. Equal to or greater than 5 square c. ‘‘Numerically controlled’’ machine tools that, according to the manufacturer’s a.2. Bidirectional slide positioning meters; repeatability less (better) than 0.00025 mm d.2. Capable of in situ sterilization. technical specifications, can be equipped with electronic devices for simultaneous per 300 mm of travel; e. Steam sterilizable freeze-drying a.3. Spindle ‘‘run out’’ and ‘‘camming’’ less equipment with a condenser capacity greater ‘‘contouring control’’ in two or more axes and that have both of the following (better) than 0.0004 mm total indicator than 50 kgs of ice in 24 hours but less than reading (TIR); 1,000 kgs; characteristics: c.1. Two or more axes that can be a.4. Angular deviation of the slide f. Equipment that incorporates or is movement (yaw, pitch and roll) less (better) coordinated simultaneously for contouring contained in P3 or P4 containment housing, than 2 seconds of arc, TIR, over full travel; control; and as follows: and c.2. ‘‘Positioning accuracies’’, with all f.1. Independently ventilated protective a.5. Slide perpendicularity less (better) compensations available: full or half suits; than 0.001 mm per 300 mm of travel; c.2.a. Better than 0.020 mm along any f.2. Class III biological safety cabinets or Technical Note: The bidirectional slide isolators with similar performance standards; linear axis (overall positioning) for grinding machines; positioning repeatability (R) of an axis is the g. Chambers designed for aerosol challenge maximum value of the repeatability of testing with microorganisms, viruses, or c.2.b. Better than 0.020 mm along any 3 linear axis (overall positioning) for milling positioning at any position along or around toxins and having a capacity of 1 m or the axis determined using the procedure and greater. machines; or c.2.c. Better than 0.020 mm along any under the conditions specified in part 2.11 of 2B991 Numerical control units for linear axis (overall positioning) for turning ISO 230/2: 1988. machine tools and ``numerically controlled'' machines; or b. Fly cutting machines having all of the machine tools, n.e.s. d. Machine tools, as follows, for removing following characteristics: b.1. Spindle ‘‘run out’’ and ‘‘camming’’ less License Requirements or cutting metals, ceramics or composites, that, according to the manufacturer’s (better) than 0.0004 mm TIR; and Reason for Control: AT technical specifications, can be equipped b.2. Angular deviation of slide movement with electronic devices for simultaneous (yaw, pitch and roll) less (better) than 2 Control(s) Country Chart ‘‘contouring control’’ in two or more axes: seconds of arc, TIR, over full travel. d.1. Machine tools for turning, grinding, AT applies to entire entry AT Column 1 2B993 Gearmaking and/or finishing milling or any combination thereof, having machinery not controlled by 2B003 capable License Exceptions two or more axes that can be coordinated of producing gears to a quality level of simultaneously for ‘‘contouring control’’ and LVS: N/A better than AGMA 11. GBS: N/A having any of the following characteristics: CIV: N/A d.1.a. One or more contouring ‘‘tilting License Requirements List of Items Controlled spindles’’; Reason for Control: AT Unit: Equipment in number Note: 2B991.d.1.a. applies to machine tools Related Controls: N/A for grinding or milling only. Control(s) Country Chart Related Definitions: N/A d.1.b. ‘‘Camming’’ (axial displacement) in Items: a. ‘‘Numerical control’’ units for one revolution of the spindle less (better) AT applies to entire entry AT Column 1 machine tools: than 0.0006 mm total indicator reading (TIR); License Exceptions

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LVS: N/A Control(s) Country Chart Unit: $ value GBS: N/A Related Controls: See also 2D101 and 2D201 CIV: N/A AT applies to entire entry AT Column 1 Related Definitions: N/A List of Items Controlled License Exceptions Items: The list of items controlled is contained in the ECCN heading. Unit: $ value LVS: N/A Related Controls: N/A GBS: N/A 2D002 ``Software'' for electronic devices, Related Definitions: N/A CIV: N/A even when residing in an electronic device Items: The list of items controlled is List of Items Controlled or system, enabling such devices or contained in the ECCN heading. Unit: $ value systems to function as a ``numerical 2B996 Dimensional inspection or Related Controls: This entry does not control control'' unit, capable of any of the measuring systems or equipment not measuring interferometer systems, without following (see List of Items Controlled). controlled by 2B006. closed or open loop feedback, containing a laser to measure slide movement errors of License Requirements License Requirements machine-tools, dimensional inspection Reason for Control: NS, NP, AT Reason for Control: AT machines or similar equipment. Related Definition: N/A Control(s) Country Chart Control(s) Country Chart Items: a. Spindle assemblies, consisting of spindles and bearings as a minimal assembly, NS applies to entire entry NS Column 1 AT applies to entire entry AT Column 1 with radial (‘‘run out’’) or axial (‘‘camming’’) NP applies to entire entry, NP Column 1 axis motion in one revolution of the spindle License Exceptions except 2D002.b. less (better) than 0.0006 mm total indicator AT applies to entire entry AT Column 1 LVS: N/A reading (TIR); GBS: N/A b. Single point diamond cutting tool License Exceptions CIV: N/A inserts, having all of the following CIV: N/A List of Items Controlled characteristics: TSR: Yes b.1. Flawless and chip-free cutting edge Unit: Equipment in number List of Items Controlled Related Controls: N/A when magnified 400 times in any direction; Related Definitions: N/A b.2. Cutting radius from 0.1 to 5 mm Unit: $ value Items: a. Manual dimensional inspection inclusive; and Related Controls: (1) See also 2D202. (2) This machines, having both of the following b.3. Cutting radius out-of-roundness less entry does not control ‘‘software’’ specially characteristics: (better) than 0.002 mm TIR. designed or modified for the operation of a.1. Two or more axes; and c. Specially designed printed circuit boards machine tools not controlled by Category 2. a.2. A measurement uncertainty equal to or with mounted components capable of Related Definitions: N/A less (better) than (3 + L/300) micrometer in upgrading, according to the manufacturer’s Items: a. Coordinating simultaneously more any axes (L measured length in mm); specifications, ‘‘numerical control’’ units, than 4 axes for ‘‘contouring control’’; or b. Systems for simultaneous linear-angular machine tools or feedback devices to or b. ‘‘Real time processing’’ of data to modify above the levels specified in ECCNs 2B991, inspection of hemishells, having both of the tool path, feed rate and spindle data, 2B993, 2B996, 2B997, or 2B998. following characteristics: during the machining operation, by any of b.1. ‘‘Measurement uncertainty’’ along any C. Materials [Reserved] the following: linear axis equal to or less (better) than 3.5 D. Software b.1. Automatic calculation and modification micrometer per 5 mm; and of part program data for machining in two b.2. ‘‘Angular position deviation’’ equal to 2D001 ``Software'' specially designed or or more axes by means of measuring cycles or less (better) than 0.02°; modified for the ``development'', and access to source data; or 2B997 ``Robots'' not controlled by 2B007 ``production'' or ``use'' of equipment b.2. ‘‘Adaptive control’’ with more than one or 2B207 that are capable of employing controlled by 2A001 or 2B001 to 2B009. physical variable measured and processed feedback information in real-time License Requirements by means of a computing model (strategy) processing from one or more sensors to Reason for Control: NS, MT, NP, AT to change one or more machining generate or modify ``programs'' or to instructions to optimize the process. generate or modify numerical program data. Control(s) Country Chart 2D018 ``Software'' for the ``development'', License Requirements ``production'' or ``use'' of equipment Reason for Control: AT NS applies to entire entry NS Column 1 MT applies to ‘‘software’’ MT Column 1 controlled by 2B018. for equipment con- Control(s) Country Chart License Requirements trolled by 2B004 and Reason for Control: NS, MT, AT AT applies to entire entry AT Column 1 2B009 for MT reasons. NP applies to specially NP Column 1 Control(s) Country Chart License Exceptions designed or modified LVS: N/A ‘‘software’’ for equip- NS applies to entire entry NS Column 1 ment controlled by GBS: N/A MT applies to ‘‘software’’ MT Column 1 2B001 for NP reasons, CIV: N/A for equipment con- and to specially de- List of Items Controlled trolled by 2B018 for MT signed ‘‘software’’ for Unit: $ value reasons. equipment controlled by Related Controls: N/A AT applies to entire entry AT Column 1 2B004, 2B006, 2B007, or Related Definitions: N/A 2B009 for NP reasons. License Exceptions Items: The list of items controlled is AT applies to entire entry AT Column 1 contained in the ECCN heading. CIV: N/A License Requirement Notes: See § 743.1 of TSR: Yes 2B998 Assemblies, units or inserts the EAR for reporting requirements for List of Items Controlled specially designed for machine tools exports under License Exceptions. Unit: $ value controlled by 2B991, or for equipment License Exceptions controlled by 2B993, 2B996 or 2B997. Related Controls: N/A CIV: N/A Related Definitions: N/A License Requirements TSR: Yes, except N/A for MT Items: The list of items controlled is Reason for Control: AT List of Items Controlled contained in the ECCN heading.

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2D101 ``Software'' specially designed for Control(s) Country Chart functionally identical equipment within the ``use'' of equipment controlled by ‘‘flexible manufacturing units’’ using pre- 2B104, 2B109 or 2B116. NP applies to entire entry NP Column 2 stored part programs and a pre-stored License Requirements AT applies to entire entry AT Column 1 strategy for the distribution of the part programs. License Exceptions Reason for Control: NS, MT, AT b. Reserved. CIV: N/A Control(s) Country Chart TSR: N/A 2D994 ``Software'' specially designed for List of Items Controlled the ``development'' or ``production'' of NS applies to entire entry NS Column 1 Unit: $ value portable electric generators controlled by MT applies to entire entry MT Column 1 Related Controls: N/A 2A994. AT applies to entire entry AT Column 1 Related Definitions: N/A License Requirements License Exceptions Items: The list of items controlled is Reason for Control: AT CIV: N/A contained in the ECCN heading. Control(s) TSR: N/A 2D991 ``Software'' specially designed for AT applies to entire entry. A license is List of Items Controlled the ``development'', ``production'', or ``use'' required for items controlled by this entry to Unit: $ value of equipment controlled by 2B991, 2B993, Cuba, Iran, Libya, and North Korea. The Related Controls: See also 9D004 or 2B996, 2B997, and 2B998. Commerce Country Chart is not designed to determine licensing requirements for this Related Definitions: N/A License Requirements entry. See part 746 of the EAR for additional Items: The list of items controlled is Reason for Control: AT information. contained in the ECCN heading. Note: Exports from the U.S. and Control(s) Country Chart 2D201 ``Software'' specially designed for transhipments to Iran must be licensed by the ``use'' of equipment controlled by AT applies to entire entry AT Column 1 the Department of Treasury, Office of Foreign 2B204, 2B206, 2B207, 2B209, 2B227 or Assets Control. (See § 742.8 and § 746.7 for 2B229. License Exceptions additional information on this requirement.) CIV: N/A License Requirements License Exceptions TSR: N/A Reason for Control: NP, AT CIV: N/A List of Items Controlled TSR: N/A Control(s) Country Chart Unit: $ value List of Items Controlled Related Controls: N/A Related Definitions: N/A Unit: $ value NP applies to entire entry NP Column 1 Related Controls: N/A AT applies to entire entry AT Column 1 Items: The list of items controlled is contained in the ECCN heading. Related Definitions: N/A License Exceptions Items: The list of items controlled is contained in the ECCN heading. CIV: N/A 2D992. Specific ``software'', as follows (see List of Items Controlled). TSR: N/A E. Technology License Requirements List of Items Controlled 2E001 ``Technology'' according to the Reason for Control: AT Unit: $ value General Technology Note for the Related Controls: N/A ``development'' of equipment or ``software'' Control(s) Country Chart Related Definitions: N/A controlled by 2A (except 2A991, 2A993, or Items: The list of items controlled is AT applies to entire entry AT Column 1 2A994), 2B (except 2B991, 2B993, 2B996, contained in the ECCN heading. 2B997, or 2B998), or 2D (except 2D991, License Exceptions 2D992, or 2D994). 2D202 ``Software'' specially designed or CIV: N/A License Requirements modified for the ``development'', TSR: N/A Reason for Control: NS, MT, NP, CB, AT ``production'' or ``use'' of equipment List of Items Controlled controlled by 2B201. Unit: $ value Control(s) Country Chart License Requirements Related Controls: N/A Reason for Control: NP, AT Related Definitions: N/A NS applies to ‘‘tech- NS Column 1 Items: a. ‘‘Software’’ to provide ‘‘adaptive nology’’ for items con- Control(s) Country Chart control’’ and having both of the following trolled by 2A001, 2B001 characteristics: to 2B009, 2D001 or NP applies to entire entry NP Column 1 a.1. For ‘‘flexible manufacturing units’’ 2D002 AT applies to entire entry AT Column 1 (FMUs) which consist at least of equipment MT applies to ‘‘tech- MT Column 1 described in b.1 and b.2 of the definition of nology’’ for items con- License Exceptions ‘‘flexible manufacturing unit’’ contained in trolled by 2B004, CIV: N/A part 772 of the EAR; and 2B009, 2B018, 2B104, TSR: N/A a.2. Capable of generating or modifying, in 2B109, 2B116, 2D001 or List of Items Controlled ‘‘real time processing’’, programs or data by 2D101 for MT reasons using the signals obtained simultaneously by NP applies to ‘‘tech- NP Column 1 Unit: $ value means of at least two detection techniques, Related Controls: N/A nology’’ for items con- such as: trolled by 2B001, Related Definitions: N/A a.2.a. Machine vision (optical ranging); 2B004, 2B006, 2B007 Items: The list of items controlled is a.2.b. Infrared imaging; 2B009, 2B104, 2B109, contained in the ECCN heading. a.2.c. Acoustical imaging (acoustical 2B204 2B206, 2B207, ranging); 2B209, 2B225, 2B226, 2D290 ``Software'' specially designed or a.2.d. Tactile measurement; modified for the ``development'', 2B228, 2B229, 2B231, a.2.e. Inertial positioning; 2D001, 2D002, or 2D201 ``production'' or ``use'' of items controlled a.2.f. Force measurement; and by 2A290, 2A291, 2A292, 2A293, or 2B290. for NP reasons a.2.g. Torque measurement. NP applies to ‘‘tech- NP Column 2 License Requirements Note: 2D992.a does not control ‘‘software’’ nology’’ for equipment Reason for Control: NP, AT which only provides rescheduling of controlled by 2A290

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Control(s) Country Chart Control(s) Country Chart b.1.b. ‘‘Diffusion bonding’’; or b.1.c. ‘‘Direct-acting hydraulic pressing’’; CB applies to ‘‘tech- CB Column 3 NP applies to ‘‘tech- NP Column 2 b.2. Technical data consisting of process nology’’ for equipment nology’’ for equipment methods or parameters as listed below used controlled by 2B350 to controlled by 2A290 to control: 2B352 CB applies to ‘‘tech- CB Column 3 b.2.a. ‘‘Superplastic forming’’ of aluminum AT applies to entire entry AT Column 1 nology’’ for equipment alloys, titanium alloys or ‘‘superalloys’’: controlled by 2B350 to License Requirement Notes: See § 743.1 of b.2.a.1. Surface preparation; the EAR for reporting requirements for 2B352 AT applies to entire entry AT Column 1 b.2.a.2. Strain rate; exports under License Exceptions. b.2.a.3. Temperature; License Exceptions License Requirement Notes: See § 743.1 of b.2.a.4. Pressure; the EAR for reporting requirements for CIV: N/A b.2.b. ‘‘Diffusion bonding’’ of exports under License Exceptions. TSR: Yes, except N/A for MT ‘‘superalloys’’ or titanium alloys: License Exceptions List of Items Controlled b.2.b.1. Surface preparation; Unit: N/A CIV: N/A b.2.b.2. Temperature; TSR: Yes, except N/A for MT Related Controls: See also 2E101, 2E201, and b.2.b.3. Pressure; 2E301 List of Items Controlled b.2.c. ‘‘Direct-acting hydraulic pressing’’ of Related Definitions: N/A Unit: N/A aluminum alloys or titanium alloys: Items: The list of items controlled is Related Controls: N/A b.2.c.1. Pressure; contained in the ECCN heading. Related Definitions: N/A b.2.c.2. Cycle time; Items: The list of items controlled is 2E002 ``Technology'' according to the contained in the ECCN heading. b.2.d. ‘‘Hot isostatic densification’’ of General Technology Note for the titanium alloys, aluminum alloys or ``production'' of equipment controlled by 2A 2E003 Other ``technology'', as follows (see ‘‘superalloys’’: (except 2A991, 2A993, or 2A994), or 2B List of Items Controlled). b.2.d.1. Temperature; (except 2B991, 2B993, 2B996, 2B997, or License Requirements b.2.d.2. Pressure; 2B998). Reason for Control: NS, AT b.2.d.3. Cycle time; License Requirements c. ‘‘Technology’’ for the ‘‘development’’ or Reason for Control: NS, MT, NP, CB, AT Control(s) Country Chart ‘‘production’’ of hydraulic stretch-forming machines and dies therefor, for the Control(s) Country Chart NS applies to entire entry NS Column 1 manufacture of airframe structures; AT applies to entire entry AT Column 1 d. ‘‘Technology’’ for the ‘‘development’’ of NS applies to ‘‘tech- NS Column 1 License Exceptions generators of machine tool instructions (e.g., nology’’ for equipment part programs) from design data residing controlled by 2A001, CIV: N/A 2B001 to 2B009 TSR: Yes, except 2E003.a, .b, .e and .f inside ‘‘numerical control’’ units; MT applies to ‘‘tech- MT Column 1 List of Items Controlled e. ‘‘Technology for the development’’ of nology’’ for equipment Unit: N/A integration ‘‘software’’ for incorporation of controlled by 2B004, Related Controls: N/A expert systems for advanced decision support 2B009, 2B018, 2B104, Related Definitions: N/A of shop floor operations into ‘‘numerical 2B109, and 2B116 for Items: a. ‘‘Technology’’ for the control’’ units; MT reasons ‘‘development’’ of interactive graphics as an f. ‘‘Technology’’ for the application of NP applies to ‘‘tech- NP Column 1 integrated part in ‘‘numerical control’’ units inorganic overlay coatings or inorganic nology’’ for equipment for preparation or modification of part surface modification coatings (specified in controlled by 2B001, programs; column 3 of the following table) to non- 2B004, 2B006, 2B007, b. ‘‘Technology’’ for metal-working electronic substrates (specified in column 2 2B009, 2B104, 2B109, manufacturing processes, as follows: 2B204, 2B206, 2B207, b.1. ‘‘Technology’’ for the design of tools, of the following table), by processes specified 2B209, 2B225, 2B226, dies or fixtures specially designed for any of in column 1 of the following table and 2B228, 2B229, or 2B231 the following processes: defined in the Technical Note. for NP reasons b.1.a. ‘‘Superplastic forming’’;

CATEGORY 2EÐMATERIALS PROCESSING TABLE; DEPOSITION TECHNIQUES [The numbers in parentheses refer to the Notes following this Table]

1. Coating Process (1) 2. Substrate 3. Resultant Coating

A. Chemical Vapor Deposition (CVD) ...... ``Superalloys'' ...... Aluminides for internal passages Ceramics and Low-expansion glasses (14) ..... Silicides Carbides Dielectric layers (15) Carbon-carbon, Ceramic, and Metal ``matrix'' Silicides ``composites''. Carbides Refractory metals Mixtures thereof (4) Dielectric layers (15) Aluminides Alloyed aluminides (2) Cemented tungsten carbide (16), Silicon car- Carbides bide. Tungsten Mixtures thereof (4) Dielectric layers (15) Molybdenum and Molybdenum alloys ...... Dielectric layers (15) Beryllium and Beryllium alloys ...... Dielectric layers (15)

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CATEGORY 2EÐMATERIALS PROCESSING TABLE; DEPOSITION TECHNIQUESÐContinued [The numbers in parentheses refer to the Notes following this Table]

1. Coating Process (1) 2. Substrate 3. Resultant Coating

Sensor window materials (9) ...... Dielectric layers (15) B. Thermal-Evaporation Physical Vapor Depo- sition (TE±PVD) 1. Physical Vapor Deposition (PVD): Elec- ``Superalloys'' ...... Alloyed silicides tron-Beam (EB±PVD). Alloyed aluminides (2) MCrAlX (5) Modified zirconia (12) Silicides Aluminides Mixtures thereof (4) Ceramics and Low-expansion glasses (14) ..... Dielectric layers (15) Corrosion resistant steel (7) ...... MCrAlX (5) Modified zirconia (12) Mixtures thereof (4) Carbon-carbon, Ceramic and Metal ``matrix'' Silicides ``composites''. Carbides Refractory metals Mixtures thereof (4) Dielectric layers (15) Cemented tungsten carbide (16), Silicon car- Carbides bide. Tungsten Mixtures thereof (4) Dielectric layers (15) Molybdenum and Molybdenum alloys ...... Dielectric layers (15) Beryllium and Beryllium alloys ...... Dielectric layers (15) Borides Sensor window materials (9) ...... Dielectric layers (15) Titanium alloys (13) ...... Borides Nitrides 2. Ion assisted resistive heating Physical Ceramics and Low-expansion glasses (14) ..... Dielectric layers (15) Vapor Deposition (Ion Plating). Carbon-carbon, Ceramic and Metal ``matrix'' Dielectric layers (15) ``composites''. Cemented tungsten carbide (16) Silicon car- Dielectric layers (15) bide. Molybdenum and Molybdenum alloys ...... Dielectric Layers (15) Beryllium and Beryllium alloys ...... Dielectric layers (15) Sensor window materials (9) ...... Dielectric Layers (15) 3. Physical Vapor Deposition: ``laser'' Ceramics and Low-expansion glasses (14) ..... Silicides evaporation. Dielectric layers (15) Carbon-carbon, Ceramic and Metal ``matrix'' Dielectric layers (15) ``composites''. Cemented tungsten carbide (16), Silicon car- Dielectric layers (15) bide. Molybdenum and Molybdenum alloys ...... Dielectric layers (15) Beryllium and Beryllium alloys ...... Dielectric layers (15) Sensor window materials (9) ...... Dielectric layers (15) Diamond-like carbon 4. Physical Vapor Deposition: cathodic arc ``Superalloys'' ...... Alloyed silicides discharge. Alloyed Aluminides (2) MCrAlX (5) Polymers (11) and Organic ``matrix'' ``compos- Borides ites''. Carbides Nitrides C. Pack cementation (see A above for out-of- Carbon-carbon, Ceramic and Metal ``matrix'' Silicides pack cementation) (10). ``composites''. Carbides Mixtures thereof (4) Titanium alloys (13) ...... Silicides Aluminides Alloyed aluminides (2) Refractory metals and alloys (8) ...... Silicides Oxides

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CATEGORY 2EÐMATERIALS PROCESSING TABLE; DEPOSITION TECHNIQUESÐContinued [The numbers in parentheses refer to the Notes following this Table]

1. Coating Process (1) 2. Substrate 3. Resultant Coating

D. Plasma spraying ...... ``Superalloys'' ...... MCrAlX (5) Modified zirconia (12) Mixtures Thereof (4) Abradable Nickel-Graphite Abradable Ni-Cr-Al- Bentonite Abradable Al-Si-Polyester Alloyed aluminides (2) Aluminum alloys (6) ...... MCrAlX (5) Modified zirconia (12) Silicides Mixtures thereof (4) Refractory metals and alloys (8) ...... Aluminides Silicides Carbides Corrosion resistant steel (7) ...... Modified zirconia (12) Mixtures thereof (4) Titanium alloys (13) ...... Carbides Aluminides Silicides Alloyed aluminides (2) Abradable Nickel-Graphite Abradable Ni-Cr-Al- Bentonite Abradable Al-Si-Polyester E. Slurry Deposition ...... Refractory metals alloys (8) ...... Fused silicides Fused aluminides except for resistance heat- ing elements Carbon-carbon, Ceramic and Metal ``matrix'' Silicides ``composites''. Carbides Mixtures thereof (4) F. Sputter Deposition ...... ``Superalloys'' ...... Alloyed silicides Alloyed aluminides (2) Noble metal modified aluminides (3) MCrAlX (5) Modified zirconia (12) Platinum Mixtures thereof (4) Ceramics and Low-expansion glasses (14) ..... Silicides Platinum Mixtures thereof (4) Dielectric layers (15) Titanium alloys (13) ...... Borides Nitrides Oxides Silicides Aluminides Alloyed aluminides (2) Carbides Carbon-carbon, Ceramic and Metal ``matrix'' Silicides ``Composites''. Carbides Refractory metals Mixtures thereof (4) Dielectric layers (15) Cemented tungsten carbide (16), Silicon car- Carbides bide. Tungsten Mixtures thereof (4) Dielectric layers (15) Molybdenum and Molybdenum alloys ...... Dielectric layers (15) Beryllium and Beryllium alloys ...... Borides Dielectric layers (15) Sensor window materials (9) ...... Dielectric layers (15)

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CATEGORY 2EÐMATERIALS PROCESSING TABLE; DEPOSITION TECHNIQUESÐContinued [The numbers in parentheses refer to the Notes following this Table]

1. Coating Process (1) 2. Substrate 3. Resultant Coating

Refractory metals and alloys (8) ...... Aluminides Silicides Oxides Carbides G. Ion Implantation ...... High temperature bearing steels ...... Additions of Chromium, Tantalum, or Niobium (Columbium) Titanium alloys (13) ...... Borides Nitrides Beryllium and Beryllium alloys ...... Borides Cemented tungsten carbide (16) ...... Carbides Nitrides

Notes to Table on Deposition Techniques following metal halides: potassium iodide, substrate, a glow discharge plasma, or ‘‘laser’’ 1. The term ‘coating process’ includes potassium fluoride, or sensor window irradiation. coating repair and refurbishing as well as materials of more than 40 mm diameter for Note 1: CVD includes the following original coating. thallium bromide and thallium processes: directed gas flow out-of-pack 2. The term ‘alloyed aluminide coating’ chlorobromide. deposition, pulsating CVD, controlled includes single or multiple-step coatings in 10. ‘‘Technology’’ for single-step pack nucleation thermal decomposition (CNTD), which an element or elements are deposited cementation of solid airfoils is not controlled plasma enhanced or plasma assisted CVD prior to or during application of the by this Category. processes. aluminide coating, even if these elements are 11. Polymers, as follows: polyimide, Note 2: Pack denotes a substrate immersed deposited by another coating process. It does polyester, polysulfide, polycarbonates and in a powder mixture. not, however, include the multiple use of polyurethanes. Note 3: The gaseous reactants used in the single-step pack cementation processes to 12. Modified zirconia refers to additions of out-of-pack process are produced using the achieve alloyed aluminides. other metal oxides, (e.g., calcia, magnesia, same basic reactions and parameters as the 3. The term ‘noble metal modified yttria, hafnia, rare earth oxides) to zirconia in pack cementation process, except that the aluminide’ coating includes multiple-step order to stabilize certain crystallographic substrate to be coated is not in contact with coatings in which the noble metal or noble phases and phase compositions. Thermal the powder mixture. metals are laid down by some other coating barrier coatings made of zirconia, modified b. Thermal Evaporation-Physical Vapor process prior to application of the aluminide with calcia or magnesia by mixing or fusion, Deposition (TE–PVD) is an overlay coating coating. are not controlled. process conducted in a vacuum with a 4. Mixtures consist of infiltrated material, 13. Titanium alloys refers to aerospace pressure less than 0.1 Pa wherein a source of graded compositions, co-deposits and alloys having an ultimate tensile strength of thermal energy is used to vaporize the multilayer deposits and are obtained by one 900 MPa or more measured at 293 K (20° C). coating material. This process results in the or more of the coating processes specified in 14. Low-expansion glasses refers to glasses condensation, or deposition, of the the Table. which have a coefficient of thermal evaporated species onto appropriately 5. MCrAlX refers to a coating alloy where expansion of 1×10 ¥7 K ¥1 or less measured positioned substrates. The addition of gases M equals cobalt, iron, nickel or combinations at 293 K (20° C). to the vacuum chamber during the coating thereof and X equals hafnium, yttrium, 15. Dielectric layers are coatings process to synthesize compound coatings is silicon, tantalum in any amount or other constructed of multi-layers of insulator an ordinary modification of the process. The intentional additions over 0.01 weight materials in which the interference use of ion or electron beams, or plasma, to percent in various proportions and properties of a design composed of materials activate or assist the coating’s deposition is combinations, except: of various refractive indices are used to also a common modification in this a. CoCrAlY coatings which contain less reflect, transmit or absorb various wavelength technique. The use of monitors to provide in- than 22 weight percent of chromium, less bands. Dielectric layers refers to more than process measurement of optical than 7 weight percent of aluminum and less four dielectric layers or dielectric/metal characteristics and thickness of coatings can than 2 weight percent of yttrium; ‘‘composite’’ layers. be a feature of these processes. Specific TE– b. CoCrAlY coatings which contain 22 to 16. Cemented tungsten carbide does not PVD processes are as follows: 24 weight percent of chromium, 10 to 12 include cutting and forming tool materials 1. Electron Beam PVD uses an electron weight percent of aluminum and 0.5 to 0.7 consisting of tungsten carbide/(cobalt, beam to heat and evaporate the material weight percent of yttrium; or nickel), titanium carbide/(cobalt, nickel), which forms the coating; c. NiCrAlY coatings which contain 21 to 23 chromium carbide/nickel-chromium and 2. Resistive Heating PVD employs weight percent of chromium, 10 to 12 weight chromium carbide/nickel. electrically resistive heating sources capable percent of aluminum and 0.9 to 1.1 weight of producing a controlled and uniform flux Technical Note to Table on Deposition percent of yttrium. of evaporated coating species; Techniques 6. The term ‘aluminum alloys’ refers to 3. ‘‘Laser’’ Evaporation uses either pulsed alloys having an ultimate tensile strength of Processes specified in Column 1 of the or continuous wave ‘‘laser’’ beams to heat the 190 MPa or more measured at 293 K (20° C). Table are defined as follows: material which forms the coating; 7. The term ‘corrosion resistant steel’ refers a. Chemical Vapor Deposition (CVD) is an 4. Cathodic Arc Deposition employs a to AISI (American Iron and Steel Institute) overlay coating or surface modification consumable cathode of the material which 300 series or equivalent national standard coating process wherein a metal, alloy, forms the coating and has an arc discharge steels. ‘‘composite’’, dielectric or ceramic is established on the surface by a momentary 8. Refractory metals consist of the deposited upon a heated substrate. Gaseous contact of a ground trigger. Controlled following metals and their alloys: niobium reactants are decomposed or combined in the motion of arcing erodes the cathode surface (columbium), molybdenum, tungsten and vicinity of a substrate resulting in the creating a highly ionized plasma. The anode tantalum. deposition of the desired elemental, alloy or can be either a cone attached to the periphery 9. Sensor window materials, as follows: compound material on the substrate. Energy of the cathode, through an insulator, or the alumina, silicon, germanium, zinc sulphide, for this decomposition or chemical reaction chamber. Substrate biasing is used for non zinc selenide, gallium arsenide and the process may be provided by the heat of the line-of-sight deposition.

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Note: This definition does not include into the surface region of the substrate. This 3. Coating integrity; random cathodic arc deposition with non- includes processes in which ion implantation 4. Coating composition; biased substrates. is performed simultaneously with electron 5. Coating and substrates bonding; c. Ion Plating is a special modification of beam physical vapor deposition or sputter 6. Microstructural uniformity. a general TE–PVD process in which a plasma deposition. c. Criteria for optical properties or an ion source is used to ionize the species assessment: Accompanying Technical Information to 1. Reflectance; to be deposited, and a negative bias is Table on Deposition Techniques applied to the substrate in order to facilitate 2. Transmission; the extraction of the species to be deposited 1. ‘‘Technology’’ for pretreatments of the 3. Absorption; from the plasma. The introduction of reactive substrates listed in the Table, as follows: 4. Scatter; species, evaporation of solids within the a. Chemical stripping and cleaning bath 5. ‘‘Technology’’ and parameters related to process chamber, and the use of monitors to cycle parameters, as follows: specific coating and surface modification provide in-process measurement of optical 1. Bath composition; processes listed in the Table, as follows: characteristics and thicknesses of coatings a. For the removal of old or defective a. For Chemical Vapor Deposition: are ordinary modifications of the process. coating corrosion product or foreign deposits; 1. Coating source composition and d. Pack Cementation is a surface b. For preparation of virgin substrates; formulation; modification coating or overlay coating 2. Time in bath; 2. Carrier gas composition; process wherein a substrate is immersed in 3. Temperature of bath; 3. Substrate temperature; a powder mixture (a pack), that consists of: 4. Number and sequences of wash cycles; 4. Time-temperature-pressure cycles; 1. The metallic powders that are to be b. Visual and macroscopic criteria for 5. Gas control and part manipulation; deposited (usually aluminum, chromium, acceptance of the cleaned part; b. For Thermal Evaporation—Physical silicon or combinations thereof); c. Heat treatment cycle parameters, as Vapor Deposition: 2. An activator (normally a halide salt); follows: 1. Ingot or coating material source and 1. Atmosphere parameters, as follows: composition; 3. An inert powder, most frequently a. Composition of the atmosphere; 2. Substrate temperature; alumina. The substrate and powder mixture b. Pressure of the atmosphere; 3. Reactive gas composition; is contained within a retort which is heated 2. Temperature for heat treatment; 4. Ingot feed rate or material vaporization to between 1,030 K (757° C) to 1,375 K 3. Time of heat treatment; rate; (1,102° C) for sufficient time to deposit the d. Substrate surface preparation 5. Time-temperature-pressure cycles; coating. parameters, as follows: 6. Beam and part manipulation; e. Plasma Spraying is an overlay coating 1. Grit blasting parameters, as follows: 7. ‘‘Laser’’ parameters, as follows: process wherein a gun (spray torch) which a. Grit composition; a. Wave length; produces and controls a plasma accepts b. Grit size and shape; b. Power density; powder or wire coating materials, melts them c. Grit velocity; c. Pulse length; and propels them towards a substrate, 2. Time and sequence of cleaning cycle d. Repetition ratio; whereon an integrally bonded coating is after grit blast; e. Source; formed. Plasma spraying constitutes either 3. Surface finish parameters; f. Substrate orientation; low pressure plasma spraying or high e. Masking technique parameters, as c. For Pack Cementation: velocity plasma spraying carried out follows: 1. Pack composition and formulation; underwater. 1. Material of mask; 2. Carrier gas composition; Note 1: Low pressure means less than 2. Location of mask; 3. Time-temperature-pressure cycles; ambient atmospheric pressure. 2. ‘‘Technology’’ for in situ quality d. For Plasma Spraying: Note 2: High velocity refers to nozzle-exit assurance techniques for evaluation of the 1. Powder composition, preparation and gas velocity exceeding 750 m/s calculated at coating processes listed in the Table, as size distribution; 293 K (20° C) at 0.1 MPa. follows: 2. Feed gas composition and parameters; a. Atmosphere parameters, as follows: 3. Substrate temperature; f. Slurry Deposition is a surface 1. Composition of the atmosphere; 4. Gun power parameters; modification coating or overlay coating 2. Pressure of the atmosphere; 5. Spray distance; process wherein a metallic or ceramic b. Time parameters; 6. Spray angle; powder with an organic binder is suspended c. Temperature parameters; 7. Cover gas composition, pressure and in a liquid and is applied to a substrate by d. Thickness parameters; flow rates; either spraying, dipping or painting, e. Index of refraction parameters; 8. Gun control and part manipulation; subsequent air or oven drying, and heat 3. ‘‘Technology’’ for post deposition e. For Sputter Deposition: treatment to obtain the desired coating. treatments of the coated substrates listed in 1. Target composition and fabrication; g. Sputter Deposition is an overlay coating the Table, as follows: 2. Geometrical positioning of part and process based on a momentum transfer a. Shot peening parameters, as follows: target; phenomenon, wherein positive ions are 1. Shot composition; 3. Reactive gas composition; accelerated by an electric field towards the 2. Shot size; 4. Electrical bias; surface of a target (coating material). The 3. Shot velocity; 5. Time-temperature-pressure cycles; kinetic energy of the impacting ions is b. Post shot peening cleaning parameters; 6. Triode power; sufficient to cause target surface atoms to be c. Heat treatment cycle parameters, as 7. Part manipulation; released and deposited on an appropriately follows: f. For Ion Implantation: positioned substrate. 1. Atmosphere parameters, as follows: 1. Beam control and part manipulation; Note 1: The Table refers only to triode, a. Composition of the atmosphere; 2. Ion source design details; magnetron or reactive sputter deposition b. Pressure of the atmosphere; 3. Control techniques for ion beam and which is used to increase adhesion of the 2. Time-temperature cycles; deposition rate parameters; coating and rate of deposition and to radio d. Post heat treatment visual and 4. Time-temperature-pressure cycles. frequency (RF) augmented sputter deposition macroscopic criteria for acceptance of the g. For Ion Plating: used to permit vaporization of non-metallic coated substrates; 1. Beam control and part manipulation; coating materials. 4. ‘‘Technology’’ for quality assurance 2. Ion source design details; Note 2: Low-energy ion beams (less than 5 techniques for the evaluation of the coated 3. Control techniques for ion beam and keV) can be used to activate the deposition. substrates listed in the Table, as follows: deposition rate parameters; h. Ion Implantation is a surface a. Statistical sampling criteria; 4. Time-temperature-pressure cycles; modification coating process in which the b. Microscopic criteria for: 5. Coating material feed rate and element to be alloyed is ionized, accelerated 1. Magnification; vaporization rate; through a potential gradient and implanted 2. Coating thickness, uniformity; 6. Substrate temperature;

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7. Substrate bias parameters. Unit: N/A Control(s): AT applies to entire entry. A Related Controls: N/A license is required for items controlled by 2E018 ``Technology'' for the ``use'' of Related Definitions: N/A this entry to Cuba, Iran, Libya, and North equipment controlled by 2B018. Items: The list of items controlled is Korea. The Commerce Country Chart is not License Requirements contained in the ECCN heading. designed to determine licensing Reason for Control: NS, MT, AT requirements for this entry. See part 746 of 2E290 ``Technology'' according to the the EAR for additional information General Technology Note for the ``use'' of Control(s) Country Chart equipment controlled by 2A290, 2A291, Note: Exports from the U.S. and 2A292, 2A293, and 2B290. transhipments to Iran must be licensed by the NS applies to entire entry NS Column 1 Department of Treasury, Office of Foreign MT applies to ‘‘tech- MT Column 1 License Requirements Assets Control. (See § 742.8 and § 746.7 of nology’’ for equipment Reason for Control: NP, AT the EAR for additional information on this controlled by 2B018 for requirement.) MT reasons. Control(s) Country Chart License Exceptions AT applies to entire entry AT Column 1 NP applies to entire entry NP Column 2 CIV: N/A License Exceptions AT applies to entire entry AT Column 1 TSR: N/A CIV: N/A List of Items Controlled TSR: Yes License Exceptions Unit: N/A List of Items Controlled CIV: N/A TSR: N/A Related Controls: N/A. Unit: N/A Related Definitions: N/A. List of Items Controlled Related Controls: N/A Items: The list of items controlled is Related Definitions: N/A Unit: N/A contained in the ECCN heading. Items: The list of items controlled is Related Controls: N/A contained in the ECCN heading. Related Definitions: N/A EAR99 Items subject to the EAR that are Items: The list of items controlled is not elsewhere controlled by this CCL 2E101 ``Technology'' according to the contained in the ECCN heading. Category or in any other category in the General Technology Note for the ``use'' of CCL are designated by the number EAR99. equipment or ``software'' controlled by 2E301 ``Technology'' according to the 2B004, 2B009, 2B104, 2B109, 2B116, or ``General Technology Note'' for ``use'' of Category 3—Electronics items controlled by 2B350, 2B351 and 2D101. A. Systems, Equipment and Components 2B352. License Requirements Note 1: The control status of equipment License Requirements Reason for Control: MT, NP, AT and components described in 3A001 or Reason for Control: CB, AT 3A002, other than those described in Control(s) Country Chart 3A001.a.3 to 3A001.a.10 or 3A001.a.12, Control(s) Country Chart which are specially designed for or which MT applies to entire entry MT Column 1 have the same functional characteristics as NP applies to 2B004, NP Column 1 CB applies to entire entry CB Column 3 other equipment is determined by the control 2B104, 2B109, and AT applies to entire entry AT Column1 status of the other equipment. 2B116. License Exceptions Note 2: The control status of integrated AT applies to entire entry AT Column 1 CIV: N/A circuits described in 3A001.a.3 to 3A001.a.9 License Exceptions TSR: N/A or 3A001.a.12 that are unalterably programmed or designed for a specific CIV: N/A List of Items Controlled function for other equipment is determined TSR: N/A Unit: N/A by the control status of the other equipment. List of Items Controlled Related Controls: N/A Related Definitions: N/A N.B.: When the manufacturer or applicant Unit: N/A cannot determine the control status of the Related Controls: This entry controls only Items: The lists of items controlled are contained in the ECCN headings. other equipment, the control status of the ‘‘technology’’ for 2B009 for spin forming integrated circuits is determined in machines combining the functions of spin 2E991 ``Technology'' for the ``use'' of 3A001.a.3 to 3A001.a.9 and 3A001.a.12. If forming and flow forming, and flow equipment controlled by 2B991, 2B993, the integrated circuit is a silicon-based forming machines. 2B996, or 2B997. ‘‘microcomputer microcircuit’’ or Related Definitions: N/A microcontroller microcircuit described in License Requirements Items: The list of items controlled is 3A001.a.3 having an operand (data) word contained in the ECCN heading. Reason for Control: AT length of 8 bit or less, the control status of the integrated circuit is determined in 2E201 ``Technology'' according to the Control(s) Country Chart 3A001.a.3. General Technology Note for the ``use'' of equipment or ``software'' controlled by AT applies to entire entry AT Column 1 3A001 Electronic components, as follows 2A225, 2A226, 2B001, 2B006, 2B007.b, License Exceptions (see List of Items Controlled). 2B007.c, 2B008, 2B009, 2B201, 2B204, 2B207, 2B209, 2B225 to 2B232, 2D201 or CIV: N/A License Requirements 2D202. TSR: N/A Reason for Control: NS, MT, AT License Requirements List of Items Controlled Control(s) Country Chart Reason for Control: NP, AT Unit: N/A Related Controls: N/A. Related Definitions: N/A. NS applies to entire entry NS Column 2 Control(s) Country Chart Items: The list of items controlled is MT applies to 3A001.a.1.a MT Column 1 AT applies to entire entry AT Column 1 NP applies to entire entry NP Column 1 contained in the ECCN heading. License Exceptions AT applies to entire entry AT Column 1 2E994 ``Technology'' for the ``use'' of LVS: N/A for MT; $1500: 3A001.c;$3000: License Exceptions portable electric generators controlled by 2A994. 3A001.b.1, b.2, b.3, .d, .e and .f; $5000: CIV: N/A 3A001.a, and .b.4 to b.7 TSR: N/A License Requirements GBS: Yes, except 3A001.a.1.a, b.1, b.3 to b.7, List of Items Controlled Reason for Control: AT .c to .f

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CIV: Yes, except 3A001.a.1, a.2, a.3.a (for a.5.a.1. A resolution of 8 bit or more, but b.1.a.2. Having a cathode heater element processors with a CTP greater than 500 less than 12 bit, with a total conversion time with a turn on time to rated RF power of less Mtops), a.5, a.6, a.9, a.10, and a.12, .b, .c, to maximum resolution of less than 10 ns; than 3 seconds; .d, .e, and .f a.5.a.2. A resolution of 12 bit with a total b.1.a.3. Coupled cavity tubes, or List of Items Controlled conversion time to maximum resolution of derivatives thereof, with an ‘‘instantaneous bandwidth’’ of more than 7% or a peak Unit: Number less than 200 ns; or a.5.a.3. A resolution of more than 12 bit power exceeding 2.5 kW; Related Controls: See also 3A101, 3A201, and b.1.a.4. Helix tubes, or derivatives thereof, 3A991 with a total conversion time to maximum resolution of less than 2 µs; with any of the following characteristics: Related Definitions: For the purposes of b.1.a.4.a. An ‘‘instantaneous bandwidth’’ of integrated circuits in 3A001.a.1, 5×103 a.5.b. Digital-to-analog converters with a × × resolution of 12 bit or more, and a ‘‘settling more than one octave, and average power Gy(Si)=5 105 Rads (Si); 5 106 Gy (Si)/ (expressed in kW) times frequency × time’’ of less than 10 ns; s=5 108 Rads (Si)/s. (expressed in GHz) of more than 0.5; Items: a. General purpose integrated circuits, a.6. Electro-optical and ‘‘optical integrated circuits’’ designed for ‘‘signal processing’’ b.1.a.4.b. An ‘‘instantaneous bandwidth’’ of as follows: one octave or less, and average power having all of the following: Note 1: The control status of wafers (expressed in kW) times frequency a.6.a. One or more than one internal (finished or unfinished), in which the (expressed in GHz) of more than 1; or ‘‘laser’’ diode; function has been determined, is to be b.1.a.4.c. Being ‘‘space qualified’’; a.6.b. One or more than one internal light evaluated against the parameters of 3A001.a. b.1.b. Crossed-field amplifier tubes with a detecting element; and Note 2: Integrated circuits include the gain of more than 17 dB; a.6.c. Optical waveguides; following types: ‘‘Monolithic integrated b.1.c. Impregnated cathodes designed for circuits’’; ‘‘Hybrid integrated circuits’’; a.7. Field programmable gate arrays having electronic tubes, with any of the following: ‘‘Multichip integrated circuits’’; ‘‘Film type any of the following: b.1.c.1. A turn on time to rated emission integrated circuits’’, including silicon-on- a.7.a. An equivalent usable gate count of of less than 3 seconds; or sapphire integrated circuits; ‘‘Optical more than 30,000 (2 input gates); or b.1.c.2. Producing a continuous emission integrated circuits’’. a.7.b. A typical ‘‘basic gate propagation current density at rated operating conditions delay time’’ of less than 0.4 ns; exceeding 5 A/cm2; a.1. Integrated circuits, designed or rated as a.8. Field programmable logic arrays b.2. Microwave integrated circuits or radiation hardened to withstand any of the having any of the following: modules containing ‘‘monolithic integrated following: a.8.a. An equivalent usable gate count of circuits’’ operating at frequencies exceeding a.1.a. A total dose of 5×103 Gy (Si), or more than 30,000 (2 input gates); or 3 GHz; higher; or a.8.b. A toggle frequency exceeding 133 a.1.b. A dose rate upset of 5×106 Gy (Si)/ Note: 3A001.b.2 does not control circuits MHz; s, or higher; or modules for equipment designed or rated a.9. Neural network integrated circuits; a.2. Integrated circuits described in to operate in the ITU allocated bands at a.10. Custom integrated circuits for which 3A001.a.3 to 3A001.a.10 or 3A001.a.12, frequencies not exceeding 31 GHz. the function is unknown, or the control electrical erasable programmable read-only b.3. Microwave transistors rated for status of the equipment in which the memories (EEPROMs), flash memories and operation at frequencies exceeding 31 GHz; integrated circuits will be used is unknown static random-access memories (SRAMs), b.4. Microwave solid state amplifiers, to the manufacturer, having any of the having any of the following: having any of the following: following: a.2.a. Rated for operation at an ambient b.4.a. Operating frequencies exceeding 10.5 a.10.a. More than 208 terminals; temperature above 398 K (125° C); GHz and an ‘‘instantaneous bandwidth’’ of a.10.b. A typical ‘‘basic gate propagation a.2.b. Rated for operation at an ambient more than half an octave; or delay time’’ of less than 0.35 ns; or temperature below 218 K (¥55° C); or b.4.b. Operating frequencies exceeding 31 a.10.c. An operating frequency exceeding 3 a.2.c. Rated for operation over the entire GHz; GHz; ambient temperature range from 218 K (¥55° b.5. Electronically or magnetically tunable a.11. Digital integrated circuits, other than C) to 398 K (125° C); band-pass or band-stop filters having more those described in 3A001.a.3 to 3A001.a.10 than 5 tunable resonators capable of tuning Note: 3A001.a.2 does not apply to and 3A001.a.12, based upon any compound across a 1.5:1 frequency band (Fmax/Fmin) in integrated circuits for civil automobiles or semiconductor and having any of the less than 10 µs having any of the following: railway train applications. following: b.5.a. A band-pass bandwidth of more than a.3. ‘‘Microprocessor microcircuits’’, a.11.a. An equivalent gate count of more 0.5% of center frequency; or ‘‘micro-computer microcircuits’’ and than 300 (2 input gates); or b.5.b. A band-stop bandwidth of less than microcontroller microcircuits, having any of a.11.b. A toggle frequency exceeding 1.2 0.5% of center frequency; the following characteristics: GHz; b.6. Microwave ‘‘assemblies’’ capable of Note: 3A001.a.3 includes digital signal a.12. Fast Fourier Transform (FFT) operating at frequencies exceeding 31 GHz; processors, digital array processors and processors having any of the following: b.7. Mixers and converters designed to digital coprocessors. a.12.a. A rated execution time for a 1,024 extend the frequency range of equipment a.3.a. A ‘‘composite theoretical point complex FFT of less than 1 ms; described in 3A002.c, 3A002.e or 3A002.f performance’’ (‘‘CTP’’) of 260 million a.12.b. A rated execution time for an N- beyond the limits stated therein; theoretical operations per second (Mtops) or point complex FFT of other than 1,024 points b.8. Microwave power amplifiers more and an arithmetic logic unit with an of less than N log2 N /10,240 ms, where N containing tubes controlled by 3A001.b and access width of 32 bit or more; is the number of points; or having all of the following: a.3.b. Manufactured from a compound a.12.c. A butterfly throughput of more than b.8.a. Operating frequencies above 3 GHz; semiconductor and operating at a clock 5.12 MHz; b.8.b. An average output power density frequency exceeding 40 MHz; or b. Microwave or millimeter wave exceeding 80 W/kg; and a.3.c. More than one data or instruction bus components, as follows: b.8.c. A volume of less than 400 cm3; or serial communication port for external b.1. Electronic vacuum tubes and cathodes, Note: 3A001.b.8 does not control interconnection in a parallel processor with as follows: equipment designed or rated for operation in a transfer rate exceeding 2.5 Mbyte/s; Note: 3A001.b.1 does not control tubes an ITU allocated band. a.4. Storage integrated circuits designed or rated to operate in the ITU c. Acoustic wave devices, as follows, and manufactured from a compound allocated bands at frequencies not exceeding specially designed components therefor: semiconductor; 31 GHz. c.1. Surface acoustic wave and surface a.5. Analog-to-digital and digital-to-analog b.1.a. Travelling wave tubes, pulsed or skimming (shallow bulk) acoustic wave converter integrated circuits, as follows: continuous wave, as follows: devices (i.e., ‘‘signal processing’’ devices a.5.a. Analog-to-digital converters having b.1.a.1. Operating at frequencies higher employing elastic waves in materials), having any of the following: than 31 GHz; any of the following:

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c.1.a. A carrier frequency exceeding 2.5 current in amperes) by the duration of the or less and a ‘‘frequency switching time’’ GHz; discharge in hours to 75% of the open circuit of 0.3 ms or more); and 3A002.d c.1.b. A carrier frequency exceeding 1 GHz, voltage divided by the total mass of the cell (synthesized output frequency of 2.6 GHz but not exceeding 2.5 GHz, and having any (or battery) in kg. or less and a ‘‘frequency switching time’’ of the following: e.1.c. ‘‘Space qualified’’ and radiation of 0.3 ms or more) c.1.b.1. A frequency side-lobe rejection hardened photovoltaic arrays with a specific CIV: Yes for 3A002.a.1 (provided all of the exceeding 55 dB; power exceeding 160 W/m2 at an operating following conditions are met: (1) c.1.b.2. A product of the maximum delay temperature of 301 K (28° C) under a Bandwidths do not exceed: 4 MHz per time and the bandwidth (time in µs and tungsten illumination of 1 kW/m2 at 2,800 K track and have up to 28 tracks or 2 MHz bandwidth in MHz) of more than 100; (2,527° C); per track and have up to 42 tracks; (2) Tape c.1.b.3. A bandwidth greater than 250 e.2. High energy storage capacitors, as speed does not exceed 6.1 m/s; (3) They are MHz; or follows: not designed for underwater use; (4) They c.1.b.4. A dispersive delay of more than 10 N.B.: See also 3A201.a. are not ruggedized for military use; and (5) µs; or e.2.a. Capacitors with a repetition rate of Recording density does not exceed 653.2 c.1.c. A carrier frequency of 1 GHz or less, less than 10 Hz (single shot capacitors) magnetic flux sine waves per mm); having any of the following: having all of the following: 3A002.b (synthesized output frequency of c.1.c.1. A product of the maximum delay e.2.a.1. A voltage rating equal to or more 2.6 GHz or less; and a ‘‘frequency time and the bandwidth (time in µs and than 5 kV; switching time’’ of 0.3 ms or more), bandwidth in MHz) of more than 100; e.2.a.2. An energy density equal to or more 3A002.d (synthesized output frequency of c.1.c.2. A dispersive delay of more than 10 than 250 J/kg; and 2.6 GHz or less; and a ‘‘frequency µs; or e.2.a.3. A total energy equal to or more switching time’’ of 0.3 ms or more). c.1.c.3. A frequency side-lobe rejection than 25 kJ; List of Items Controlled exceeding 55 dB and a bandwidth greater e.2.b. Capacitors with a repetition rate of Unit: Number than 50 MHz; 10 Hz or more (repetition rated capacitors) Related Controls: See also 3A202 and 3A992 c.2. Bulk (volume) acoustic wave devices having all of the following: Related Definitions: N/A (i.e., ‘‘signal processing’’ devices employing e.2.b.1. A voltage rating equal to or more Items: a. Recording equipment, as follows, elastic waves) that permit the direct than 5 kV; and specially designed test tape therefor: processing of signals at frequencies e.2.b.2. An energy density equal to or more a.1. Analog instrumentation magnetic tape exceeding 1 GHz; than 50 J/kg; recorders, including those permitting the c.3. Acoustic-optic ‘‘signal processing’’ e.2.b.3. A total energy equal to or more recording of digital signals (e.g., using a high devices employing interaction between than 100 J; and density digital recording (HDDR) module), acoustic waves (bulk wave or surface wave) e.2.b.4. A charge/discharge cycle life equal having any of the following: and light waves that permit the direct to or more than 10,000; a.1.a. A bandwidth exceeding 4 MHz per processing of signals or images, including e.3. ‘‘Superconductive’’ electromagnets and electronic channel or track; spectral analysis, correlation or convolution; solenoids specially designed to be fully a.1.b. A bandwidth exceeding 2 MHz per d. Electronic devices and circuits charged or discharged in less than one electronic channel or track and having more containing components, manufactured from second, having all of the following: than 42 tracks; or ‘‘superconductive’’ materials specially N.B.: See also 3A201.b. a.1.c. A time displacement (base) error, designed for operation at temperatures below e.3.a. Energy delivered during the measured in accordance with applicable IRIG the ‘‘critical temperature’’ of at least one of discharge exceeding 10 kJ in the first second; or EIA documents, of less than ± 0.1 µs; the ‘‘superconductive’’ constituents, with any e.3.b. Inner diameter of the current of the following: carrying windings of more than 250 mm; and Note: Analog magnetic tape recorders d.1. Electromagnetic amplification: e.3.c. Rated for a magnetic induction of specially designed for civilian video d.1.a. At frequencies equal to or less than more than 8 T or ‘‘overall current density’’ purposes are not considered to be instrumentation tape recorders. 31 GHz with a noise figure of less than 0.5 in the winding of more than 300 A/mm 2; dB; or Note: 3A001.e.3 does not control a.2. Digital video magnetic tape recorders d.1.b. At frequencies exceeding 31 GHz; ‘‘superconductive’’ electromagnets or having a maximum digital interface transfer d.2. Current switching for digital circuits solenoids specially designed for Magnetic rate exceeding 180 Mbit/s; using ‘‘superconductive’’ gates with a Resonance Imaging (MRI) medical Note: 3A002.a.2 does not control digital product of delay time per gate (in seconds) equipment. video magnetic tape recorders specially and power dissipation per gate (in watts) of f. Rotary input type shaft absolute position designed for television recording using a ¥14 J; or less than 10 encoders having any of the following: signal format standardized or recommended d.3. Frequency selection at all frequencies f.1. A resolution of better than 1 part in by the CCIR or the IEC for civil television using resonant circuits with Q-values 265,000 (18 bit resolution) of full scale; or applications. exceeding 10,000; f.2. An accuracy better than ± 2.5 seconds a.3. Digital instrumentation magnetic tape e. High energy devices, as follows: of arc. data recorders employing helical scan e.1. Batteries and photovoltaic arrays, as techniques or fixed head techniques, having follows: 3A002 General purpose electronic any of the following: Note: 3A001.e.1 does not control batteries equipment, as follows (see List of Items a.3.a. A maximum digital interface transfer with volumes equal to or less than 27 cm3 Controlled). rate exceeding 175 Mbit/s; or (e.g., standard C-cells or R14 batteries). License Requirements a.3.b. Being ‘‘space qualified’’; e.1.a. Primary cells and batteries having an Reason for Control: NS, AT Note: 3A002.a.3 does not control analog energy density exceeding 480 Wh/kg and magnetic tape recorders equipped with rated for operation in the temperature range Control(s) Country Chart HDDR conversion electronics and configured from below 243 K (-30° C) to above 343 K to record only digital data. ° (70 C); NS applies to entire entry NS Column 2 a.4. Equipment, having a maximum digital e.1.b. Rechargeable cells and batteries AT applies to entire entry AT Column 1 interface transfer rate exceeding 175 Mbit/s, having an energy density exceeding 150 Wh/ designed to convert digital video magnetic License Requirement Notes: See § 743.1 of kg after 75 charge/discharge cycles at a tape recorders for use as digital the EAR for reporting requirements for discharge current equal to C/5 hours (C being instrumentation data recorders; exports under License Exceptions. the nominal capacity in ampere hours) when a.5. Waveform digitizers and transient operating in the temperature range from License Exceptions recorders having all of the following: ° ° below 253 K (-20 C) to above 333 K (60 C); LVS: $3000: 3A002.a, .e, .f, .g; $5000: N.B.: See also 3A202. Technical Note: Energy density is obtained 3A002.b to .d a.5.a. Digitizing rates equal to or more than by multiplying the average power in watts GBS: Yes for 3A002.a.1.; 3A002.b 200 million samples per second and a (average voltage in volts times average (synthesized output frequency of 2.6 GHz resolution of 10 bits or more; and

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a.5.b. A continuous throughput of 2 Control(s) Country Chart b.4. With a magnetic field uniform to better Gbit/s or more; than 1% over the central 50% of the inner Technical Note: For those instruments AT applies to entire entry AT Column 1 volume; with a parallel bus architecture, the License Exceptions Note: 3A201.b does not specify magnets continuous throughput rate is the highest specially designed for and exported as parts word rate multiplied by the number of bits LVS: N/A of medical nuclear magnetic resonance in a word. Continuous throughput is the GBS: N/A (NMR) imaging systems. The phrase ‘‘as part fastest data rate the instrument can output to CIV: N/A of’’ does not necessarily mean physical part mass storage without the loss of any List of Items Controlled in the same shipment; separate shipments information while sustaining the sampling Unit: Number from different sources are allowed, provided rate and analog-to-digital conversion. Related Controls: Items controlled in 3A101.a the related export documents clearly specify b. ‘‘Frequency synthesizer’’, ‘‘assemblies’’ are subject to the export licensing authority that the shipments are dispatched ‘‘as part having a ‘‘frequency switching time’’ from of the U.S. Department of State, Office of of’’ the imaging systems. one selected frequency to another of less than Defense Trade Controls (See 22 CFR part c. Flash X-ray generators or pulsed electron 1 ms; 121). accelerators with peak energy of 500 keV or c. ‘‘Signal analyzers’’, as follows: Related Definitions: N/A greater, as follows, except accelerators that c.1. ‘‘Signal analyzers’’ capable of Items: a. Analog-to-digital converters, usable are component parts of devices designed for analyzing frequencies exceeding 31 GHz; in ‘‘missiles’’, designed to meet military purposes other than electron beam or X-ray c.2. ‘‘Dynamic signal analyzers’’ having a specifications for ruggedized equipment; radiation (electron microscopy, for example) ‘‘real-time bandwidth’’ exceeding 25.6 Khz; b. Accelerators capable of delivering and those designed for medical purposes: Note: 3A002.c.2 does not control those electromagnetic radiation produced by c.1. Having an accelerator peak electron energy of 500 keV or greater but less than 25 ‘‘dynamic signal analyzers’’ using only bremsstrahlung from accelerated electrons of MeV and with a figure of merit (K) of 0.25 constant percentage bandwidth filters. 2 MeV or greater, and systems containing or greater, where K is defined as: Technical Note: Constant percentage those accelerators. K=1.7×103V2.65Q, where V is the peak bandwidth filters are also known as octave or Note: 3A101.b above does not include fractional octave filters. electron energy in million electron volts and equipment specially designed for medical Q is the total accelerated charge in coulombs d. Frequency synthesized signal generators purposes. if the accelerator beam pulse duration is less producing output frequencies, the accuracy than or equal to 1 microsecond; if the 3A201 Electronic components, other than and short term and long term stability of accelerator beam pulse duration is greater those controlled by 3A001, as follows (see which are controlled, derived from or than 1 microsecond, Q is the maximum List of Items Controlled). disciplined by the internal master frequency, accelerated charge in 1 microsecond {Q and having any of the following: License Requirements equals the integral of i with respect to t, over d.1. A maximum synthesized frequency Reason for Control: NP, AT the lesser of 1 microsecond or the time exceeding 31 GHz; duration of the beam pulse (Q={integral} idt), d.2. A ‘‘frequency switching time’’ from Control(s) Country Chart where i is beam current in amperes and t is one selected frequency to another of less than time in seconds}; or 1 ms; or NP applies to entire entry NP Column 1 c.2. Having an accelerator peak electron d.3. A single sideband (SSB) phase noise AT applies to entire entry AT Column 1 energy of 25 MeV or greater and a peak better than ¥(126+20 log10F¥20 log10f) in power greater than 50 MW. {Peak power = License Exceptions dBc/Hz, where F is the off-set from the (peak potential in volts) × (peak beam current operating frequency in Hz and f is the LVS: N/A in amperes)}. operating frequency in MHz; GBS: N/A Technical Notes: a. Time duration of the Note: 3A002.d does not control equipment CIV: N/A beam pulse—In machines, based on in which the output frequency is either List of Items Controlled microwave accelerating cavities, the time produced by the addition or subtraction of Unit: Number duration of the beam pulse is the lesser of 1 two or more crystal oscillator frequencies, or Related Controls: This entry does not control microsecond or the duration of the bunched by an addition or subtraction followed by a magnets that are specially designed for and beam packet resulting from one microwave multiplication of the result. exported as parts of medical nuclear modulator pulse. e. Network analyzers with a maximum magnetic resonance (NMR) imaging b. Peak beam current—In machines based operating frequency exceeding 40 GHz; systems. Such parts may be exported in on microwave accelerating cavities, the peak f. Microwave test receivers having all of the separate shipments from different sources, beam current is the average current in the following: provided that the related export control time duration of a bunched beam packet. f.1. A maximum operating frequency documents clearly specify that the parts are exceeding 40 GHz; and for medical NMR imaging systems that are 3A225 Frequency changers (also known f.2. Being capable of measuring amplitude being exported. as converters or inverters) or generators, and phase simultaneously; Related Definition: N/A other than those controlled by 0B001.c.11, having all of the characteristics (see List of g. Atomic frequency standards having any Items: a. Capacitors with the following Items Controlled). of the following: characteristics: g.1. Long-term stability (aging) less (better) a.1. Voltage rating greater than 1.4 kV, License Requirements than 1×10¥11/month; or energy storage greater than 10 J, capacitance Reason for Control: NP, AT g.2. Being ‘‘space qualified’’. greater than 0.5 µF and series inductance less Note: 3A002.g.1 does not control non- than 50 Nh; or Control(s) Country Chart ’’space qualified’’ rubidium standards. a.2. Voltage rating greater than 750 V, capacitance greater than 0.25 µF and series NP applies to entire entry NP Column 1 3A101 Electronic equipment, devices and inductance less than 10 Nh; AT applies to entire entry AT Column 1 components, other than those controlled by b. Superconducting solenoidal 3A001, as follows (see List of Items License Exceptions electromagnets with all of the following Controlled). characteristics: LVS: N/A License Requirements b.1. Capable of creating magnetic fields of GBS: N/A CIV: N/A Reason for Control: MT, AT more than 2 teslas (20 kilogauss); b.2. With an L/D ratio (length divided by List of Items Controlled Control(s) Country Chart inner diameter) greater than 2; Unit: Number b.3. With an inner diameter of more than Related Controls: Frequency changers (also MT applies to entire entry MT Column 1 300 mm; and known as converters or inverters)

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especially designed or prepared to supply Items: The list of items controlled is b.2. Having an output greater than 100 A; motor stators and having the characteristics contained in the ECCN heading. b.3. Having a rise time of less than 10 described in 3A225.b and .d, together with microsecond into loads of less than 40 ohms a total harmonic distortion of less than 2 3A228 Switching devices, as follows (see (rise time is the time interval from 10% to percent and an efficiency of greater than 80 List of Items Controlled). 90% current amplitude when driving a percent are subject to the export licensing License Requirements resistive load); authority of the Nuclear Regulatory Reason for Control: NP, AT b.4. Enclosed in a dust-tight enclosure; Commission. (See 10 CFR part 110.) b.5. No dimension greater than 254 mm; Related Definition: Motor stators are Control(s) Country Chart b.6. Weight less than 25 kg; and especially designed or prepared ring- b.7. Specified for use over an extended ° shaped stators for high-speed multiphase NP applies to entire entry NP Column 1 temperature range 223 K (¥50 C) to 373 K ° AC hysteresis (or reluctance) motors for AT applies to entire entry AT Column 1 (100 C) or specified as suitable for aerospace synchronous operation within a vacuum in use. the frequency range of 600 Hz to 2,000 Hz, License Exceptions and a power range of 50 VA to 1,000 VA. LVS: N/A 3A230 High-speed pulse generators with The stators consist of multiphase windings GBS: N/A output voltages greater than 6 volts into a on a laminated low-loss iron core CIV: N/A less than 55 ohm resistive load, and with comprising thin layers typically to 2.0 mm List of Items Controlled pulse transition times less than 500 (.008 in) thick or less. picoseconds. Unit: Number Items: a. A multiphase output capable of Related Controls: N/A License Requirements providing a power of 40 W or more; Related Definitions: N/A b. Capable of operating in the frequency Reason for Control: NP, AT Items: a. Cold-cathode tubes (including gas range between 600 and 2000 Hz; krytron tubes and vacuum sprytron tubes), c. Total harmonic distortion below 10%; Control(s) Country Chart whether gas filled or not, operating similarly and to a spark gap, containing three or more d. Frequency control better than 0.1%. NP applies to entire entry NP Column 1 electrodes, and having all of the following AT applies to entire entry AT Column 1 characteristics: 3A226 Direct current high-power supplies, License Exceptions other than those controlled by 0B001.j.6, a.1. Anode peak voltage rating of 2,500 V LVS: N/A capable of continuously producing, over a or more; GBS: N/A time period of 8 hours, 100 V or greater with a.2. Anode peak current rating of 100 A or CIV: N/A current output of 500 A or greater and with more; and current or voltage regulation better than a.3. Anode delay time of 10 microsecond List of Items Controlled 0.1%. or less; Unit: Number b. Triggered spark-gaps having an anode License Requirements Related Controls: N/A delay time of 15 microsecond or less and Related Definitions: In this entry, ‘‘pulse Reason for Control: NP, AT rated for a peak current of 500 A or more; transition time’’ is defined as the time c. Modules or assemblies with a fast interval between 10% and 90% voltage Control(s) Country Chart switching function having all of the amplitude. following characteristics: Items: The list of items controlled is NP applies to entire entry NP Column 1 c.1. Anode peak voltage rating greater than contained in the ECCN heading. AT applies to entire entry AT Column 1 2,000 V; License Exceptions c.2. Anode peak current rating of 500 A or 3A231 Neutron generator systems, more; and LVS: N/A including tubes, designed for operation c.3. Turn-on time of 1 microsecond or less. GBS: N/A without an external vacuum system and utilizing electrostatic acceleration to induce CIV: N/A 3A229 Firing sets and equivalent high- a tritium-deuterium nuclear reaction. List of Items Controlled current pulse generators (for detonators Unit: $ value controlled by 3A232), as follows (see List of License Requirements Related Controls: N/A Items Controlled). Reason for Control: NP, AT Related Definitions: N/A License Requirements Control(s) Country Chart Items: The list of items controlled is Reason for Control: NP, AT contained in the ECCN heading. NP applies to entire entry NP Column 1 3A227 High-voltage direct current power Control(s) Country Chart AT applies to entire entry AT Column 1 supplies, other than those controlled by 0B001.j.5, capable of continuously NP applies to entire entry NP Column 1 License Exceptions producing, over a time period of 8 hours, AT applies to entire entry AT Column 1 LVS: N/A 20,000 V or greater with current output of License Exceptions GBS: N/A CIV: N/A 1 A or greater and with current or voltage LVS: N/A regulation better than 0.1%. GBS: N/A List of Items Controlled License Requirements CIV: N/A Unit: Number, parts and accessories in $ Reason for Control: NP, AT List of Items Controlled value Unit: Number Related Controls: N/A Control(s) Country Chart Related Controls: See also U.S. Munitions Related Definitions: N/A List Items: The list of items controlled is NP applies to entire entry NP Column 1 Related Definitions: N/A contained in the ECCN heading. AT applies to entire entry AT Column 1 Items: a. Explosive detonator firing sets 3A232 Detonators and multipoint initiation License Exceptions designed to drive multiple controlled systems, as follows (see List of Items detonators controlled by 3A232; LVS: N/A Controlled). b. Modular electrical pulse generators GBS: N/A (pulsers) designed for portable, mobile or License Requirements CIV: N/A ruggedized use (including xenon flash-lamp Reason for Control: NP, AT List of Items Controlled drivers) having all the following Unit: $ value characteristics: Control(s) Country Chart Related Controls: N/A b.1. Capable of delivering their energy in Related Definitions: N/A less than 15 microsecond; NP applies to entire entry NP Column 1

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Control(s) Country Chart that are monel or nickel-plated; (c) Electron 2. External amplifiers; bombardment ionization sources; (d) 3. Pre-amplifiers; AT applies to entire entry AT Column 1 Having a collector system suitable for 4. Sampling devices; isotopic analysis. 5. Cathode ray tubes. License Exceptions Related Definitions: N/A LVS: N/A Items: a. Inductively coupled plasma mass 3A980 Voice print identification and GBS: N/A spectrometers (ICP/MS); analysis equipment and parts, n.e.s. CIV: N/A b. Glow discharge mass spectrometers License Requirements List of Items Controlled (GDMS); Reason for Control: CC Unit: Number c. Thermal ionization mass spectrometers (TIMS); Related Controls: This entry does not control Control(s) Country Chart detonators using only primary explosives, d. Electron bombardment mass such as lead azide. spectrometers that have a source chamber CC applies to entire entry CC Column 1 Related Definition: The detonators of concern constructed from, lined with or plated with all utilize a small electrical conductor materials resistant to UF6; License Exceptions (bridge, bridge wire or foil) that explosively e. Molecular beam mass spectrometers as LVS: N/A vaporizes when a fast, high-current follows: GBS: N/A electrical pulse is passed through it. In e.1. Having a source chamber constructed CIV: N/A nonslapper types, the exploding conductor from, lined with or plated with stainless steel List of Items Controlled or molybdenum and have a cold trap capable starts a chemical detonation in a contacting Unit: Equipment in number of cooling to 193 K (¥80° C) or less; or high-explosive material such as PETN Related Controls: N/A e.2. Having a source chamber constructed (Pentaerythritoltetranitrate). In slapper Related Definitions: N/A from, lined with or plated with materials detonators, the explosive vaporization of Items: The list of items controlled is resistant to UF6; or the electrical conductor drives a flyer or contained in the ECCN heading. slapper across a gap and the impact of the f. Mass spectrometers equipped with a slapper on an explosive starts a chemical microfluorination ion source designed for use 3A981 Polygraphs (except biomedical detonation. The slapper in some designs is with actinides or actinide fluorides. recorders designed for use in medical driven by a magnetic force. The term facilities for monitoring biological and 3A292 Oscilloscopes and transient exploding foil detonator may refer to either neurophysical responses); fingerprint recorders other than those controlled by an EB or a slapper-type detonator. Also, the analyzers, cameras and equipment, n.e.s.; 3A002.a.5, and specially designed word initiator is sometimes used in place automated fingerprint and identification components therefor. of the word detonator. retrieval systems, n.e.s.; psychological Items: a. Electrically driven explosive License Requirements stress analysis equipment; electronic detonators, the following: Reason for Control: NP, AT monitoring restraint devices; and specially a.1. Exploding bridge (EB); designed parts and accessories, n.e.s. a.2. Exploding bridge wire (EBW); Control(s) Country Chart License Requirements a.3. Slapper; a.4. Exploding foil initiators (EFI); NP applies to entire entry NP Column 2 Reason for Control: CC b. Arrangements using single or multiple AT applies to entire entry AT Column 1 detonators designed to nearly simultaneously Control(s) Country Chart initiate an explosive surface (over greater License Exceptions than 5000 mm2) from a single firing signal LVS: N/A CC applies to entire entry CC Column 1 (with an initiation timing spread over the GBS: N/A License Exceptions CIV: N/A surface of less than 2.5 microseconds). LVS: N/A List of Items Controlled 3A233 Mass spectrometers, other than GBS: N/A Unit: Number those controlled by 0B002.g, capable of CIV: N/A Related Controls: N/A measuring ions of 230 atomic mass units or List of Items Controlled Related Definitions: ‘‘Bandwidth’’ is defined greater and having a resolution of better as the band of frequencies over which the Unit: Equipment in number than 2 parts in 230, and ion sources deflection on the cathode ray tube does not Related Controls: N/A therefor. fall below 70.7% of that at the maximum Related Definitions: N/A License Requirements point measured with a constant input Items: The list of items controlled is contained in the ECCN heading. Reason for Control: NP, AT voltage to the oscilloscope amplifier. Items: a. Non-modular analog oscilloscopes 3A991 Electronic devices and components Control(s) Country Chart having a bandwidth of 1 GHz or greater; not controlled by 3A001. b. Modular analog oscilloscope systems NP applies to entire entry NP Column 1 having either of the following characteristics: License Requirements AT applies to entire entry AT Column 1 b.1. A mainframe with a bandwidth of 1 Reason for Control: AT GHz or greater; or License Exceptions b.2. Plug-in modules with an individual Control(s) Country Chart LVS: N/A bandwidth of 4 GHz or greater; GBS: N/A c. Analog sampling oscilloscopes for the AT applies to entire entry AT Column 1 CIV: N/A analysis of recurring phenomena with an License Exceptions List of Items Controlled effective bandwidth greater than 4 GHz; d. Digital oscilloscopes and transient LVS: N/A Unit: Number GBS: N/A Related Controls: Specially designed or recorders, using analog-to-digital conversion CIV: N/A prepared magnetic or quadruple mass techniques, capable of storing transients by spectrometers that have the following sequentially sampling single-shot inputs at List of Items Controlled characteristics and are capable of taking successive intervals of less than 1 ns (greater Unit: Equipment in number on-line samples of feed, product, or tails than 1 giga-sample per second), digitizing to Related Controls: N/A from UF6 gas streams are subject to the 8 bits or greater resolution and storing 256 or Related Definitions: N/A export licensing authority of the Nuclear more samples. Items: a. ‘‘Microprocessor microcircuits’’, Regulatory Commission. (See 10 CFR part Note: Specially designed components ‘‘microcomputer microcircuits’’, and 110.): (a) Unit resolution for mass greater controlled by this item are the following, for microcontroller microcircuits having a clock than 320; (b) Ion sources that are analog oscilloscopes: frequency exceeding 25 MHz; constructed of or lined with nichrome or 1. Plug-in units; b. Storage integrated circuits, as follows:

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b.1. Electrical erasable programmable read- h.2. Rechargeable cells and batteries having b.3. ‘‘Space qualified’’; only memories (EEPROMs) with a storage an energy density exceeding 150 Wh/kg after c. Equipment, with a maximum digital capacity; 75 charge/discharge cycles at a discharge interface transfer rate exceeding 60 Mbit/s, b.1.a. Exceeding 16 Mbits per package for current equal to C/5 hours (C being the designed to convert digital video magnetic flash memory types; or nominal capacity in ampere hours) when tape recorders for use as digital b.1.b. Exceeding either of the following operating in the temperature range from instrumentation data recorders; limits for all other EEPROM types: below 253 K (¥20° C) to above 333 K (60° B. Test, Inspection and Production b.1.b.1. Exceeding 1 Mbit per package; or C); Equipment b.1.b.2. Exceeding 256 kbit per package Technical Note: Energy density is obtained and a maximum access time of less than 80 by multiplying the average power in watts 3B001 Equipment for the manufacturing of ns; (average voltage in volts times average semiconductor devices or materials and b.2. Static random access memories current in amperes) by the duration of the specially designed components and (SRAMs) with a storage capacity: discharge in hours to 75 percent of the open accessories therefor. b.2.a. Exceeding 1 Mbit per package; or circuit voltage divided by the total mass of License Requirements b.2.b. Exceeding 256 kbit per package and the cell (or battery) in kg. Reason for Control: NS, AT a maximum access time of less than 25 ns; i. ‘‘Superconductive’’ electromagnets or c. Field programmable logic arrays having solenoids specially designed to be fully Control(s) Country Chart either of the following: charged or discharged in less than one c.1. An equivalent gate count of more than minute, having all of the following: 5000 (2 input gates); or NS applies to entire entry NS Column 2 c.2. A toggle frequency exceeding 100 Note: 3A991.i does not control AT applies to entire entry AT Column 1 ‘‘superconductive’’ electromagnets or MHz; License Requirement Notes: See § 743.1 of solenoids designed for Magnetic Resonance d. Custom integrated circuits for which the EAR for reporting requirements for Imaging (MRI) medical equipment. either the function is unknown, or the exports under License Exceptions. i.1. Maximum energy delivered during the control status of the equipment in which the License Exceptions integrated circuits will be used is unknown discharge divided by the duration of the to the manufacturer, having any of the discharge of more than 500 kJ per minute; LVS: $500 following: i.2. Inner diameter of the current carrying GBS: Yes, except 3B001. a.2 and a.3; and for d.1. More than 144 terminals; or windings of more than 250 mm; and equipment controlled under 3B001.e, they d.2. A typical ‘‘basic propagation delay i.3. Rated for a magnetic induction of more cannot be connected to equipment time’’ of less than 0.4 ns. than 8T or ‘‘overall current density’’ in the controlled by 3B001.a.2, a.3, and .f. e. Travelling wave tubes, pulsed or winding of more than 300 A/mm2. CIV: Yes for equipment controlled by continuous wave, as follows: j. Circuits or systems for electromagnetic 3B001.a.1 e.1. Coupled cavity tubes, or derivatives energy storage, containing components List of Items Controlled thereof; manufactured from ‘‘superconductive’’ Unit: Number e.2. Helix tubes, or derivatives thereof, materials specially designed for operation at Related Controls: See also 3B991 with any of the following: temperatures below the ‘‘critical Related Definitions: N/A e.2.a.1. An ‘‘instantaneous bandwidth’’ of temperature’’ of at least one of their Items: a. ‘‘Stored program controlled’’ half an octave or more; and ‘‘superconductive’’ constituents, having all of equipment designed for epitaxial growth, as e.2.a.2. The product of the rated average the following: follows: output power (expressed in kW) and the j.1. Resonant operating frequencies a.1. Equipment capable of producing a maximum operating frequency (expressed in exceeding 1 MHz; layer thickness uniform to less than ± 2.5% GHz) of more than 0.2; j.2. A stored energy density of 1 MJ/M3 or across a distance of 75 mm or more; e.2.b.1 An ‘‘instantaneous bandwidth’’ of more; and a.2. Metal organic chemical vapor less than half an octave; and j.3. A discharge time of less than 1 ms; deposition (MOCVD) reactors specially e.2.b.2. The product of the rated average k. Hydrogen/hydrogen-isotope thyratrons designed for compound semiconductor output power (expressed in kW) and the of ceramic-metal construction and rate for a crystal growth by the chemical reaction maximum operating frequency (expressed in peak current of 500 A or more. between materials controlled by 3C003 or GHz) of more than 0.4; 3C004; f. Flexible waveguides designed for use at 3A992 General purpose electronic a.3. Molecular beam epitaxial growth frequencies exceeding 40 GHz; equipment not controlled by 3A002. equipment using gas sources; g. Surface acoustic wave and surface License Requirements b. ‘‘Stored program controlled’’ equipment designed for ion implantation, having any of skimming (shallow bulk) acoustic wave Reason for Control: AT devices (i.e., ‘‘signal processing’’ devices the following: b.1. An accelerating voltage exceeding 200 employing elastic waves in materials), having Control(s) Country Chart either of the following: keV; b.2. Being specially designed and g.1. A carrier frequency exceeding 1 GHz; AT applies to entire entry AT Column 1 or optimized to operate at an accelerating g.2. A carrier frequency of 1 GHz or less; License Exceptions voltage of less than 10 keV; and LVS: $1000 for Syria for .a only b.3. Direct write capability; or g.2.a. A frequency side-lobe rejection GBS: N/A b.4. Being capable of high energy oxygen exceeding 55 dB; CIV: N/A implant into a heated semiconductor material g.2.b. A product of the maximum delay ‘‘substrate’’; List of Items Controlled c. ‘‘Stored program controlled’’ anisotropic time and bandwidth (time in microseconds Unit: Equipment in number and bandwidth in MHz) of more than 100; or plasma dry etching equipment, as follows: Related Controls: N/A c.1. Equipment with cassette-to-cassette g.2.c. A dispersive delay of more than 10 Related Definitions: N/A microseconds. operation and load-locks, and having any of Items: a. Electronic test equipment, n.e.s. the following: h. Batteries, as follows: b. Digital instrumentation magnetic tape c.1.a. Magnetic confinement; or Note: 3A991.h does not control batteries data recorders having any of the following c.1.b. Electron cyclotron resonance (ECR); with volumes equal to or less than 26 cm3 characteristics; c.2. Equipment specially designed for (e.g., standard C-cells or UM–2 batteries). b.1. A maximum digital interface transfer equipment controlled by 3B001.e. and having h.1. Primary cells and batteries having an rate exceeding 60 Mbit/s and employing any of the following: energy density exceeding 350 Wh/kg and helical scan techniques; c.2.a. Magnetic confinement; or rated for operation in the temperature range b.2. A maximum digital interface transfer c.2.b. ECR; from below 243 K (¥30° C) to above 343 K rate exceeding 120 Mbit/s and employing d. ‘‘Stored program controlled’’ plasma (70° C); fixed head techniques; or enhanced CVD equipment, as follows:

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d.1. Equipment with cassette-to-cassette Unit: Number components as specified in the heading of operation and load-locks, and having any of Related Controls: See also 3B992 3B991.b, as follows: the following: Related Definitions: N/A Note: 3B991 does not control quartz d.1.a. Magnetic confinement; or Items: a. For testing S-parameters of furnace tubes, furnace liners, paddles, boats d.1.b. ECR; transistor devices at frequencies exceeding 31 (except specially designed caged boats), d.2. Equipment specially designed for GHz; bubblers, cassettes or crucibles specially equipment controlled by 3B001.e. and having b. For testing integrated circuits capable of designed for the processing equipment any of the following: performing functional (truth table) testing at controlled by 3B991.b.1. d.2.a. Magnetic confinement; or a pattern rate of more than 60 MHz; d.2.b. ECR; b.1.a. Equipment for producing Note: 3B002.b does not control test polycrystalline silicon and materials e. ‘‘Stored program controlled’’ automatic equipment specially designed for testing: loading multi-chamber central wafer controlled by 3C001; 1. ‘‘Assemblies’’ or a class of ‘‘assemblies’’ handling systems, having all of the following: b.1.b. Equipment specially designed for for home or entertainment applications; e.1. Interfaces for wafer input and output, purifying or processing III/V and II/VI 2. Uncontrolled electronic components, to which more than two pieces of semiconductor materials controlled by ‘‘assemblies’’ or integrated circuits. semiconductor processing equipment are to 3C001, 3C002, 3C003, or 3C004, except c. For testing microwave integrated circuits be connected; and crystal pullers, for which see 3B991.b.1.c at frequencies exceeding 3 GHz; e.2. Designed to form an integrated system below; in a vacuum environment for sequential Note: 3B002.c does not control test b.1.c. Crystal pullers and furnaces, as multiple wafer processing; equipment specially designed for testing follows: microwave integrated circuits for equipment Note: 3B001.e. does not control automatic Note: 3B991.b.1.c does not control designed or rated to operate in the ITU diffusion and oxidation furnaces. robotic wafer handling systems not designed allocated bands at frequencies not exceeding to operate in a vacuum environment. 31 GHz. b.1.c.1. Annealing or recrystallizing equipment other than constant temperature f. ‘‘Stored program controlled’’ lithography d. Electron beam systems designed for equipment, as follows: furnaces employing high rates of energy operation at 3 keV or below, or ‘‘laser’’ beam transfer capable of processing wafers at a rate f.1. Align and expose step and repeat systems, for the non-contactive probing of exceeding 0.005 m2 per minute; equipment for wafer processing using photo- powered-up semiconductor devices, having b.1.c.2. ‘‘Stored program controlled’’ optical or X-ray methods, having any of the all of the following: crystal pullers having any of the following following: d.1. Stroboscopic capability with either characteristics: f.1.a. A light source wavelength shorter beam-blanking or detector strobing; and b.1.c.2.a. Rechargeable without replacing than 400 nm; or d.2. An electron spectrometer for voltage f.1.b. Capable of producing a pattern with measurement with a resolution of less than the crucible container; µ a minimum resolvable feature size of 0.7 m 0.5 V. b.1.c.2.b. Capable of operation at pressures or less; above 2.5 x 105 Pa; or Note: 3B002.d does not control scanning b.1.c.2.c. Capable of pulling crystals of a Note: The minimum resolvable feature size electron microscopes, except when specially is calculated by the following formula: diameter exceeding 100 mm; designed and instrumented for the non- b.1.d. ‘‘Stored program controlled’’ (an exposure light source wavelength in µm) contactive probing of powered-up equipment for epitaxial growth having any of × (K factor) semiconductor devices. the following characteristics: MRF = ————————————————— 3B991 Equipment not controlled by 3B001 b.1.d.1. Capable of producing a layer numerical aperture for the manufacture of electronic thickness uniformity across the wafer of ± Where the K factor = 0.7. components and materials, and specially equal to or better than 3.5%; MRF = minimum resolvable feature size. designed components and accessories b.1.d.2. Rotation of individual wafers f.2. Equipment specially designed for mask therefor. during processing; or making or semiconductor device processing b.1.e. Molecular beam epitaxial growth License Requirements using deflected focussed electron beam, ion equipment; beam or ‘‘laser’’ beam, having any of the Reason for Control: AT b.1.f. ‘‘Magnetically enhanced’’ following: ‘‘sputtering’’ equipment with specially f.2.a. A spot size smaller than 0.2 µm; Control(s) Country Chart designed integral load locks capable of f.2.b. Being capable of producing a pattern transferring wafers in an isolated vacuum with a feature size of less than 1 µm; or AT applies to entire entry AT Column 1 environment; f.2.c. An overlay accuracy of better than ± License Exceptions b.1.g. Equipment specially designed for ion µ 0.20 m (3 sigma); LVS: N/A implantation, ion-enhanced or photo- g. Masks and reticles designed for GBS: N/A enhanced diffusion, having any of the integrated circuits controlled by 3A001; CIV: N/A following characteristics: h. Multi-layer masks with a phase shift b.1.g.1. Patterning capability; List of Items Controlled layer. b.1.g.2. Accelerating voltage for more than Unit: Equipment in number 200 keV; or 3B002 ``Stored program controlled'' test Related Controls: N/A b.1.g.3. Capable of high energy oxygen equipment, specially designed for testing Related Definitions: N/A implant into a heated ‘‘substrate’’; finished or unfinished semiconductor Items: a. Equipment specially designed for b.1.h. ‘‘Stored program controlled’’ devices and specially designed the manufacture of electron tubes, optical equipment for the selective removal (etching) components and accessories therefor. elements and specially designed components by means of anisotropic dry methods (e.g., License Requirements therefor controlled by 3A001 or 3A991; plasma), as follows: b. Equipment specially designed for the Reason for Control: NS, AT b.1.h.1. Batch types having either of the manufacture of semiconductor devices, following: integrated circuits and ‘‘assemblies’’, as Control(s) Country Chart b.1.h.1.a. End-point detection, other than follows, and systems incorporating or having optical emission spectroscopy types; or the characteristics of such equipment: NS applies to entire entry NS Column 2 b.1.h.1.b. Reactor operational (etching) AT applies to entire entry AT Column 1 Note: 3B991.b also controls equipment pressure of 26.66 Pa or less; used or modified for use in the manufacture b.1.h.2. Single wafer types having any of License Exceptions of other devices, such as imaging devices, the following: LVS: $500 electro-optical devices, acoustic-wave b.1.h.2.a. End-point detection, other than GBS: Yes devices. optical emission spectroscopy types; CIV: N/A b.1. Equipment for the processing of b.1.h.2.b. Reactor operational (etching) List of Items Controlled materials for the manufacture of devices and pressure of 26.66 Pa or less; or

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b.1.h.2.c. Cassette-to-cassette and load b.1.m.1. Positioning accuracy less than ±1 b.2.f. Align and expose equipment for locks wafer handling; micrometer; or wafer production using photo-optical Notes: 1. ‘‘Batch types’’ refers to machines b.1.m.2. Spot size (kerf width) less than 3 methods, including both projection image not specially designed for production micrometer. transfer equipment and step and repeat processing of single wafers. Such machines b.2. Masks, mask ‘‘substrates’’, mask- equipment, capable of performing any of the can process two or more wafers making equipment and image transfer following functions: simultaneously with common process equipment for the manufacture of devices Note: 3B991.b.2.f does not control photo- parameters, e.g., RF power, temperature, etch and components as specified in the heading optical contact and proximity mask align and gas species, flow rates. of 3B991, as follows: expose equipment or contact image transfer 2. ‘‘Single wafer types’’ refers to machines Note: The term ‘‘masks’’ refers to those equipment. specially designed for production processing used in electron beam lithography, X-ray b.2.f.1. Production of a pattern size of less of single wafers. These machines may use lithography, and ultraviolet lithography, as than 2.5 micrometer; automatic wafer handling techniques to load well as the usual ultraviolet and visible b.2.f.2. Alignment with a precision finer a single wafer into the equipment for photo-lithography. than ± 0.25 micrometer (3 sigma); or processing. The definition includes b.2.a. Finished masks, reticles and designs b.2.f.3. Machine-to-machine overlay no equipment that can load and process several therefor, except: better than ± 0.3 micrometer; wafers but where the etching parameters, e.g., b.2.a.1. Finished masks or reticles for the RF power or end point, can be independently b.2.g. Electron beam, ion beam or X-ray production of unembargoed integrated equipment for projection image transfer determined for each individual wafer. circuits; or b.1.i. ‘‘Chemical vapor deposition’’ (CVD) capable of producing patterns less than 2.5 b.2.a.2. Masks or reticles, having both of micrometer; equipment, e.g., plasma-enhanced CVD the following characteristics: (PECVD) or photo-enhanced CVD, for b.2.a.2.a. Their design is based on Note: For focussed, deflected-beam systems semiconductor device manufacturing, having geometries of 2.5 micrometer or more; and (direct write systems), see 3B991.b.1.j or b.10. either of the following capabilities, for b.2.a.2.b. The design does not include b.2.h. Equipment using ‘‘lasers’’ for direct deposition of oxides, nitrides, metals or special features to alter the intended use by write on wafers capable of producing polysilicon: means of production equipment or patterns less than 2.5 micrometer. b.1.i.1. ‘‘Chemical vapor deposition’’ ‘‘software’’; b.3. Equipment for the assembly of equipment operating below 105 Pa; or b.2.b. Mask ‘‘substrates’’ as follows: integrated circuits, as follows: b.1.i.2. PECVD equipment operating either b.2.b.1. Hard surface (e.g., chromium, b.3.a. ‘‘Stored program controlled’’ die below 60 Pa (450 millitorr) or having silicon, molybdenum) coated ‘‘substrates’’ bonders having all of the following automatic cassette-to-cassette and load lock (e.g., glass, quartz, sapphire) for the characteristics: wafer handling; preparation of masks having dimensions b.3.a.1. Specially designed for ‘‘hybrid Note: 3B991.b.1.i does not control low exceeding 125 mm x 125 mm; or integrated circuits’’; pressure ‘‘chemical vapor deposition’’ b.2.b.2. ‘‘Substrates’’ specially designed for b.3.a.2. X–Y stage positioning travel (LPCVD) systems or reactive ‘‘sputtering’’ X-ray masks; exceeding 37.5 x 37.5 mm; and equipment. b.2.c. Equipment, other than general b.3.a.3. Placement accuracy in the X–Y b.1.j. Electron beam systems specially purpose computers, specially designed for plane of finer than ± 10 micrometer; designed or modified for mask making or computer aided design (CAD) of b.3.b. ‘‘Stored program controlled’’ semiconductor device processing having any semiconductor devices or integrated circuits; equipment for producing multiple bonds in of the following characteristics: b.2.d. Equipment or machines, as follows, a single operation (e.g., beam lead bonders, b.1.j.1. Electrostatic beam deflection; for mask or reticle fabrication: chip carrier bonders, tape bonders); b.1.j.2. Shaped, non-Gaussian beam profile; b.2.d.1. Photo-optical step and repeat b.3.c. Semi-automatic or automatic hot cap b.1.j.3. Digital-to-analog conversion rate cameras capable of producing arrays larger sealers, in which the cap is heated locally to exceeding 3 MHz; than 100 mm x 100 mm, or capable of a higher temperature than the body of the b.1.j.4. Digital-to-analog conversion producing a single exposure larger than 6 package, specially designed for ceramic accuracy exceeding 12 bit; or mm x 6 mm in the image (i.e., focal) plane, microcircuit packages controlled by 3A001 b.1.j.5. Target-to-beam position feedback or capable of producing line widths of less and that have a throughput equal to or more control precision of 1 micrometer or finer; than 2.5 micrometer in the photoresist on the than one package per minute. Note: 3B991.b.1.j does not control electron ‘‘substrate’’; Note: 3B991.b.3 does not control general beam deposition systems or general purpose b.2.d.2. Mask or reticle fabrication purpose resistance type spot welders. scanning electron microscopes. equipment using ion or ‘‘laser’’ beam b.4. Filters for clean rooms capable of b.1.k. Surface finishing equipment for the lithography capable of producing line widths providing an air environment of 10 or less processing of semiconductor wafers as of less than 2.5 micrometer; or particles of 0.3 micrometer or smaller per follows: b.2.d.3. Equipment or holders for altering 0.02832 m3 and filter materials therefor; b.1.k.1. Specially designed equipment for masks or reticles or adding pellicles to backside processing of wafers thinner than remove defects; 3B992 Equipment not controlled by 3B002 100 micrometer and the subsequent Note: 3B991.b.2.d.1 and b.2.d.2 do not for the inspection or testing of electronic separation thereof; or control mask fabrication equipment using components and materials, and specially b.1.k.2. Specially designed equipment for photo-optical methods which was either designed components and accessories achieving a surface roughness of the active commercially available before the 1st therefor; surface of a processed wafer with a two- January, 1980, or has a performance no better License Requirements sigma value of 2 micrometer or less, total than such equipment. Reason for Control: AT indicator reading (TIR); b.2.e. ‘‘Stored program controlled’’ Note: 3B991.b.1.k does not control single- equipment for the inspection of masks, Control(s) Country Chart side lapping and polishing equipment for reticles or pellicles with: wafer surface finishing. b.2.e.1. A resolution of 0.25 micrometer or AT applies to entire entry AT Column 1 finer; and b.1.l. Interconnection equipment which License Exceptions includes common single or multiple vacuum b.2.e.2. A precision of 0.75 micrometer or LVS: N/A chambers specially designed to permit the finer over a distance in one or two GBS: N/A integration of any equipment controlled by coordinates of 63.5 mm or more; CIV: N/A 3B991 into a complete system; Note: 3B991.b.2.e does not control general b.1.m. ‘‘Stored program controlled’’ purpose scanning electron microscopes List of Items Controlled equipment using ‘‘lasers’’ for the repair or except when specially designed and Unit: Equipment in number trimming of ‘‘monolithic integrated circuits’’ instrumented for automatic pattern Related Controls: N/A with either of the following characteristics: inspection. Related Definitions: N/A

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Items: a. Equipment specially designed for ‘‘assemblies’’ or a class of ‘‘assemblies’’ for Control(s) Country Chart the inspection or testing of electron tubes, home and entertainment applications. optical elements and specially designed 2. 3B992.b.4.b does not control test AT applies to entire entry AT Column 1 components therefor controlled by 3A001 or equipment specially designed for testing License Exceptions 3A991; electronic components, ‘‘assemblies’’ and b. Equipment specially designed for the integrated circuits not controlled by 3A001 or LVS: $3000 inspection or testing of semiconductor 3A991 provided such test equipment does GBS: N/A devices, integrated circuits and ‘‘assemblies’’, not incorporate computing facilities with CIV: N/A as follows, and systems incorporating or ‘‘user accessible programmability’’. List of Items Controlled having the characteristics of such equipment: b.4.c. Equipment specially designed for Unit: $ value Note: 3B992.b also controls equipment determining the performance of focal-plane Related Controls: N/A arrays at wavelengths of more than 1,200 nm, used or modified for use in the inspection or Related Definitions: III/V compounds are using ‘‘stored program controlled’’ testing of other devices, such as imaging polycrystalline or binary or complex measurements or computer aided evaluation devices, electro-optical devices, acoustic- monocrystalline products consisting of and having any of the following wave devices. elements of groups IIIA and VA of characteristics: Mendeleyev’s periodic classification table b.1. ‘‘Stored program controlled’’ b.4.c.1. Using scanning light spot diameters (e.g., gallium arsenide, gallium-aluminium inspection equipment for the automatic of less than 0.12 mm; arsenide, indium phosphide). detection of defects, errors or contaminants b.4.c.2. Designed for measuring Items: a. Silicon; of 0.6 micrometer or less in or on processed photosensitive performance parameters and b. Germanium; or wafers, ‘‘substrates’’, other than printed for evaluating frequency response, c. III/V compounds of gallium or indium. circuit boards or chips, using optical image modulation transfer function, uniformity of acquisition techniques for pattern responsivity or noise; or 3C002 Resist material and ``substrates'' comparison; b.4.c.3. Designed for evaluating arrays coated with controlled resists. Note: 3B992.b.1 does not control general capable of creating images with more than 32 License Requirements purpose scanning electron microscopes, x 32 line elements; Reason for Control: NS, AT except when specially designed and b.5. Electron beam test systems, capable of instrumented for automatic pattern operating at or below 3,000 eV, for non- Control(s) Country Chart inspection. contactive probing of powered-up b.2. Specially designed ‘‘stored program semiconductor devices having any of the following: NS applies to entire entry NS Column 2 controlled’’ measuring and analysis b.5.a. Stroboscopic capability with either AT applies to entire entry AT Column 1 equipment, as follows: beam blanking or detector strobing; b.2.a. Specially designed for the License Exceptions b.5.b. An electron spectrometer for voltage measurement of oxygen or carbon content in LVS: $3000 measurements with a resolution of less than semiconductor materials; GBS: N/A 0.5 V; or b.2.b. Equipment for line width CIV: N/A b.5.c. Electrical tests fixtures for measurement with a resolution of 1 performance analysis of integrated circuits; List of Items Controlled micrometer or finer; Note: 3B992.b.5 does not control scanning Unit: $ value b.2.c. Specially designed flatness Related Controls: N/A measurement instruments capable of electron microscopes, except when specially designed and instrumented for non- Related Definitions: Silylation techniques are measuring deviations from flatness of 10 defined as processes incorporating micrometer or less with a resolution of 1 contactive probing of a powered-up semiconductor device. oxidation of the resist surface to enhance micrometer or finer. performance for both wet and dry b.3. ‘‘Stored program controlled’’ wafer b.6. ‘‘Stored program controlled’’ developing. multifunctional focused ion beam systems probing equipment having any of the Items: a. Positive resists designed for specially designed for manufacturing, following characteristics: semiconductor lithography specially adjusted repairing, physical layout analysis and b.3.a. Positioning accuracy finer than 3.5 (optimized) for use at wavelengths below 370 testing of masks or semiconductor devices micrometer; nm; and having either of the following b.3.b. Capable of testing devices having b. All resists designed for use with electron characteristics: more than 68 terminals; or beams or ion beams, with a sensitivity of 0.01 b.6.a. Target-to-beam position feedback b.3.c. Capable of testing at a frequency µcoulomb/mm2 or better; exceeding 1 GHz; control precision of 1 micrometer or finer; or c. All resists designed for use with X-rays, b.6.b. Digital-to-analog conversion b.4. Test equipment as follows: with a sensitivity of 2.5 mJ/mm2 or better; b.4.a. ‘‘Stored program controlled’’ accuracy exceeding 12 bit; d. All resists optimized for surface imaging equipment specially designed for testing b.7. Particle measuring systems employing technologies, including silylated resists. discrete semiconductor devices and ‘‘lasers’’ designed for measuring particle size unencapsulated dice, capable of testing at and concentration in air having both of the 3C003 Organo-inorganic compounds, as frequencies exceeding 18 GHz; following characteristics: follows (see List of Items Controlled). b.7.a. Capable of measuring particle sizes Technical Note: Discrete semiconductor License Requirements devices include photocells and solar cells. of 0.2 micrometer or less at a flow rate of 3 Reason for Control: NS, AT b.4.b. ‘‘Stored program controlled’’ 0.02832 m per minute or more; and b.7.b. Capable of characterizing Class 10 equipment specially designed for testing Control(s) Country Chart integrated circuits and ‘‘assemblies’’ thereof, clean air or better. capable of functional testing: C. Materials NS applies to entire entry NS Column 2 b.4.b.1. At a pattern rate exceeding 20 AT applies to entire entry AT Column 1 MHz; or 3C001 Hetero-epitaxial materials b.4.b.2. At a pattern rate exceeding 10 MHz consisting of a ``substrate'' having stacked License Exceptions but not exceeding 20 MHz and capable of epitaxially grown multiple layers of any of LVS: $3000 testing packages of more than 68 terminals; the following (see List of Items Controlled). GBS: N/A Note: 3B992.b.4.b does not control License Requirements CIV: N/A equipment specially designed for testing Reason for Control: NS, AT List of Items Controlled integrated circuits not controlled by 3A001 or Unit: $ value 3A991. Control(s) Country Chart Related Controls: This entry controls only Notes: 1. 3B992.b.4.b does not control test compounds whose metallic, partly metallic equipment specially designed for testing NS applies to entire entry NS Column 2 or non-metallic element is directly linked

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to carbon in the organic part of the Control(s) Country Chart Items: The list of items controlled is molecule. contained in the ECCN heading. Related Definition: N/A NS applies to entire entry NS Column 1 Items: a. Organo-metallic compounds of AT applies to entire entry AT Column 1 3D102 ``Software'' specially designed for the ``development'' or ``production'' of aluminium, gallium or indium having a License Exceptions purity (metal basis) better than 99.999%; equipment controlled by 3A001.a.1.a or CIV: N/A b. Organo-arsenic, organo-antimony and 3A101. TSR: Yes organo-phosphorus compounds having a License Requirements List of Items Controlled purity (inorganic element basis) better than Reason for Control: MT, AT 99.999%. Unit: $ value Related Controls: N/A 3C004 Hydrides of phosphorus, arsenic or Related Definitions: N/A Control(s) Country Chart antimony, having a purity better than Items: The list of items controlled is 99.999%, even diluted in inert gases or contained in the ECCN heading. MT applies to entire entry MT Column 1 hydrogen. AT applies to entire entry AT Column 1 3D003 Computer-aided-design (CAD) License Requirements ``software'' designed for semiconductor License Exceptions Reason for Control: NS, AT devices or integrated circuits, having any of CIV: N/A the following (see List of Items Controlled). TSR: N/A Control(s) Country Chart License Requirements List of Items Controlled NS applies to entire entry NS Column 2 Reason for Control: NS, AT Unit: $ value AT applies to entire entry AT Column 1 Related Controls: N/A Control(s) Country Chart Related Definitions: N/A License Exceptions Items: The list of items controlled is NS applies to entire entry NS Column 1 LVS: $3000 contained in the ECCN heading. GBS: N/A AT applies to entire entry AT Column 1 CIV: N/A License Exceptions 3D980 ``Software'' specially designed for List of Items Controlled CIV: N/A the ``development'', ``production'', or ``use'' Unit: $ value TSR: Yes of items controlled by 3A980 and 3A981. Related Controls: This entry does not control List of Items Controlled License Requirements hydrides containing less than 20% molar Unit: $ value Reason for Control: CC, AT or more of inert gases or hydrogen. Related Controls: This entry does not control Related Definition: N/A ‘‘software’’ specially designed for Control(s) Country Chart Items: The list of items controlled is schematic entry, logic simulation, placing contained in the ECCN heading. and routing, layout verification or pattern CC applies to entire entry CC Column 1 generation tape. AT applies to entire entry AT Column 1 D. Software Related Definitions: (1) Libraries, design License Exceptions 3D001 ``Software'' specially designed for attributes or associated data for the design the ``development'' or ``production'' of of semiconductor devices or integrated CIV: N/A equipment controlled by 3A001.b to circuits are considered as ‘‘technology’’. (2) TSR: N/A 3A002.g or 3B (except 3B991 and 3B992). A lithographic processing simulator is a ‘‘software’’ package used in the design List of Items Controlled License Requirements phase to define the sequence of Unit: $ value Reason for Control: NS, AT lithographic, etching and deposition steps Related Controls: N/A for translating masking patterns into Related Definitions: N/A Control(s) Country Chart specific topographical patterns in Items: The list of items controlled is conductors, dielectrics or semiconductor contained in the ECCN heading. NS applies to ‘‘software’’ NS Column 1 material. for equipment con- Items: a. Design rules or circuit verification 3D991 ``Software'' specially designed for trolled by 3A001.b to rules; the ``development'', ``production'', or ``use'' 3A001.f, 3A002, and 3B. b. Simulation of the physically laid out of electronic devices or components AT applies to entire entry AT Column 1 circuits; or controlled by 3A991, general purpose c. Lithographic processing simulators for electronic equipment controlled by 3A992, License Requirement Notes: See § 743.1 of design. the EAR for reporting requirements for or manufacturing and test equipment exports under License Exceptions. 3D101 ``Software'' specially designed for controlled by 3B991 and 3B992. License Exceptions the ``use'' of equipment controlled by License Requirements 3A101.b. CIV: N/A Reason for Control: AT TSR: Yes License Requirements List of Items Controlled Reason for Control: MT, AT Control(s) Country Chart Unit: $ value Control(s) Country Chart Related Controls: See also 3D101 AT applies to entire entry AT Column 1 Related Definitions: N/A MT applies to entire entry MT Column 1 License Exceptions Items: The list of items controlled is AT applies to entire entry AT Column 1 CIV: N/A contained in the ECCN heading. License Exceptions TSR: N/A 3D002 ``Software'' specially designed for CIV: N/A List of Items Controlled the ``use'' of ``stored program controlled'' TSR: N/A Unit: $ value equipment controlled by 3B (except 3B991 List of Items Controlled Related Controls: N/A and 3B992). Unit: $ value Related Definitions: N/A License Requirements Related Controls: N/A Items: The list of items controlled is Reason for Control: NS, AT Related Definitions: N/A contained in the ECCN heading.

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E. Technology b. Hetero-structure semiconductor devices 3E292 ``Technology'' according to the such as high electron mobility transistors General Technology Note for the 3E001 ``Technology'' according to the (HEMT), hetero-bipolar transistors (HBT), ``development'', ``production'', or ``use'' of General Technology Note for the quantum well and super lattice devices; equipment controlled by 3A292. ``development'' or ``production'' of c. ‘‘Superconductive’’ electronic devices; equipment or materials controlled by 3A License Requirements d. Substrates of films of diamond for Reason for Control: NP, AT (except 3A292, 3A980, 3A981, 3A991 or electronic components. 3A992), 3B (except 3B991 and 3B992) or 3C. Control(s) Country Chart License Requirements 3E101 ``Technology'' according to the General Technology Note for the ``use'' of Reason for Control: NS, MT, NP, AT NP applies to entire entry NP Column 2 equipment or ``software'' controlled by AT applies to entire entry AT Column 1 3A001.a.1.a. or 3A101. Control(s) Country Chart License Exceptions License Requirements CIV: N/A NS applies to ‘‘tech- NS Column 1 Reason for Control: MT, AT nology’’ for items con- TSR: N/A trolled by 3A001, Control(s) Country Chart List of Items Controlled 3A002, 3B001 and Unit: N/A 3B002 or 3C001 to MT applies to entire entry MT Column 1 Related Controls: N/A 3C004. AT applies to entire entry AT Column 1 Related Definitions: N/A MT applies to ‘‘tech- MT Column 1 Items: The list of items controlled is nology’’ for equipment License Exceptions contained in the ECCN heading. controlled by 3A001 or CIV: N/A 3A101 for MT reasons. TSR: N/A 3E980 ``Technology'' specially designed for ``development'', ``production'', or ``use'' NP applies to ‘‘tech- NP Column 1 List of Items Controlled nology’’ for equipment of items controlled by 3A980 and 3A981. Unit: N/A controlled by 3A201, Related Controls: N/A License Requirements 3A225 to 3A233 for NP Reason for Control: CC, AT reasons. Related Definitions: N/A AT applies to entire entry AT Column 1 Items: The list of items controlled is contained in the ECCN heading. Control(s) Country Chart License Requirement Notes: See § 743.1 of the EAR for reporting requirements for 3E102 ``Technology'' according to the CC applies to entire entry CC Column 1 exports under License Exceptions. General Technology Note for the AT applies to entire entry AT Column 1 License Exceptions ``development'' of ``software'' controlled by License Exceptions 3D101. CIV: N/A CIV: N/A TSR: Yes, except N/A for MT License Requirements TSR: N/A List of Items Controlled Reason for Control: MT, AT List of Items Controlled Unit: N/A Unit: N/A Related Controls: (1) See also 3E101 and Control(s) Country Chart Related Controls: N/A 3E201. (2) 3E001 does not control Related Definitions: N/A MT applies to entire entry MT Column 1 ‘‘technology’’ for the ‘‘development’’ or Items: The list of items controlled is AT applies to entire entry AT Column 1 ‘‘production’’ of: (a) Microwave transistors contained in the ECCN heading. License Exceptions operating at frequencies below 31 GHz; (b) 3E991 ``Technology'' for the Integrated circuits controlled by 3A001.a.3 CIV: N/A ``development'', ``production'', or ``use'' of to a.12, having all of the following: 1. TSR: N/A electronic devices or components Using ‘‘technology’’ of one micrometer or List of Items Controlled controlled by 3A991, general purpose more, AND 2. Not incorporating multi- electronic equipment controlled by 3A992, layer structures. (3) The term multi-layer Unit: N/A Related Controls: N/A or manufacturing and test equipment structures in this entry does not include controlled by 3B991 or 3B992. devices incorporating a maximum of two Related Definitions: N/A metal layers and two polysilicon layers. Items: The list of items controlled is License Requirements Related Definition: N/A contained in the ECCN heading. Reason for Control: AT Items: The list of items controlled is 3E201 ``Technology'' according to the contained in the ECCN heading. Control(s) Country Chart General Technology Note for the ``use'' of 3E002 Other ``technology'' for the equipment controlled by 3A201, 3A225 to AT applies to entire entry AT Column 1 ``development'' or ``production'' of items 3A233. License Exceptions described in the List of Items Controlled. License Requirements CIV: N/A License Requirements Reason for Control: NP, AT TSR: N/A Reason for Control: NS, AT List of Items Controlled Control(s) Country Chart Unit: N/A Control(s) Country Chart NP applies to entire entry NP Column 1 Related Controls: N/A Related Definitions: N/A NS applies to entire entry NS Column 1 AT applies to entire entry AT Column 1 Items: The list of items controlled is AT applies to entire entry AT Column 1 License Exceptions contained in the ECCN heading. License Exceptions CIV: N/A CIV: N/A TSR: N/A EAR99 Items subject to the EAR that are TSR: Yes not elsewhere specified in this CCL List of Items Controlled Category or in any other category in the List of Items Controlled Unit: N/A CCL are designated by the number EAR99. Unit: N/A Related Controls: N/A Related Controls: N/A Related Definitions: N/A Category 4—Computers Related Definitions: N/A Items: The list of items controlled is Note 1: Computers, related equipment and Items: a. Vacuum microelectronic devices; contained in the ECCN heading. ‘‘software’’ performing telecommunications

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Radiation hardened to exceed any of MT applies to digital com- MT Column 1 controllers are not regarded as the following specifications: puters used as ancillary telecommunications equipment described in a.2.a. A total dose of 5 × 10 3 Gy (Si); or equipment for test fa- Category 5, Part 1 (Telecommunications). a.2.b. A dose rate upset of 5 × 10 6 Gy (Si)/ cilities and equipment N.B. 2: For the control status of ‘‘software’’ s; that are controlled by specially designed for packet switching, see a.2.c. Single Event Upset of 1 × 10 ¥7 Error/ 9B005 or 9B006. ECCN 5D001 (Telecommunications). bit/day; CC applies to digital com- CC Column 1 b. Having characteristics or performing puters for computerized Note 2: Computers, related equipment and finger-print equipment. ‘‘software’’ performing cryptographic, functions exceeding the limits in Category 5, Part 2 (‘‘Information Security’’). AT applies to entire entry AT Column 1 cryptoanalytic, certifiable multi-level (refer to 4A994 for con- security or certifiable user isolation 4A002 ``Hybrid computers'' and trols on digital comput- functions, or that limit electromagnetic ``electronic assemblies'' and specially ers with a CTP ≥ 6 but ≤ compatibility (EMC), must also be evaluated designed components therefor. to 2,000 Mtops). against the performance characteristics in Category 5, Part 2 (‘‘Information Security’’). License Requirements NP applies to digital computers with a CTP Reason for Control: NS, MT, AT, NP, XP greater than 2,000 Mtops, unless a License A. Systems, Equipment and Components Exception is available. See § 742.3(b) of the Control(s) Country Chart EAR for information on applicable licensing 4A001 Electronic computers and related review policies. equipment, and ``electronic assemblies'' NS applies to entire entry NS Column 2 XP applies to digital computers with a CTP and specially designed components MT applies to hybrid MT Column 1 greater than 2,000 Mtops, unless a License therefor. computers combined Exception is available. XP controls vary License Requirements with specially designed according to destination and end-user and Reason for Control: NS, MT, AT, NP, XP ‘‘software’’, for model- end-use. See § 742.12 of the EAR for ing, simulation, or de- additional information. Control(s) Country Chart sign integration of com- Note: For all destinations, except Cuba, plete rocket systems and Iran, Iraq, Libya, North Korea, Sudan, and NS applies to entire entry NS Column 2 unmanned air vehicle Syria, no license is required (NLR) for MT applies to items in MT Column 1 systems that are usable computers with a CTP of 2,000 Mtops, and 4A001.a when the pa- in systems controlled for assemblies described in 4A003.c that are rameters in 4A101 are for MT reasons. not capable of exceeding a CTP of 2,000 met or exceeded. AT applies to entire entry AT Column 1 Mtops in aggregation. Computers controlled AT applies to entire entry AT Column 1 in this entry for MT reasons are not eligible NP applies to hybrid computers with a CTP for NLR. NP applies to electronic computers with a greater than 2,000 Mtops, unless a License License Requirement Notes: See § 743.1 of Exception is available. See § 742.3(b) of the CTP greater than 2,000 Mtops, unless a the EAR for reporting requirements for EAR for information on applicable licensing License Exception is available. See § 742.3(b) exports under License Exceptions. of the EAR for information on applicable review policies. licensing review policies. XP applies to hybrid computers with a CTP License Exceptions XP applies to electronic computers with a greater than 2,000 Mtops, unless a License LVS: $5000; N/A for MT and ‘‘digital’’ CTP greater than 2,000 Mtops, unless a Exception is available. XP controls vary computers controlled by 4A003.b and License Exception is available. XP controls according to destination and end-user and having a CTP exceeding 10,000 MTOPS; or vary according to destination and end-user end-use. See § 742.12 of the EAR for ‘‘electronic assemblies’’ controlled by and end-use. See § 742.12 of the EAR for additional information. 4A003.c and capable of enhancing additional information. License Exceptions performance by aggregation of ‘‘computing elements’’ so that the CTP of the License Requirement Notes: See § 743.1 of LVS: $5000; N/A for MT aggregation exceeds 10,000 MTOPS. the EAR for reporting requirements for GBS: N/A GBS: Yes, for 4A003.d, .e, .f, and .g and exports under License Exceptions. CIV: N/A specially designed components therefor, License Exceptions List of Items Controlled exported separately or as part of a system. LVS: $5000 for 4A001.a; N/A for MT and Unit: Equipment in number; parts and CTP: Yes, for computers controlled by 4A001.b accessories in $ value 4A003.a, .b and .c, to the exclusion of other GBS: N/A Related Controls: See also 4A102 and 4A994 technical parameters, with the exception of CIV: N/A Related Definitions: N/A parameters specified as controlled for List of Items Controlled Items: a. Containing ‘‘digital computers’’ Missile Technology (MT) concerns and 4A003.e (equipment performing analog-to- Unit: Equipment in number; parts and controlled by 4A003; digital or digital-to-analog conversions accessories in $ value b. Containing analog-to-digital converters exceeding the limits of 3A001.a.5.a). See Related Controls: See also 4A101 and 4A994. having all of the following characteristics: b.1. 32 channels or more; and § 740.7 of the EAR. Equipment designed or rated for transient b.2. A resolution of 14 bits (plus sign bit) CIV: Yes, for 4A003.d (having a 3–D vector ionizing radiation is subject to the export or more with a conversion rate of 200,000 rate less that 10 M vectors/sec), .e, .f and licensing authority of the U.S. Department conversions/s or more. .g. of State, Office of Defense Trade Controls. List of Items Controlled (See 22 CFR part 121.) See also 4A101. 4A003 ``Digital computers'', ``electronic Related Definitions: For the purposes of assemblies'', and related equipment Unit: Equipment in number; parts and integrated circuits in 4A001.a.2, 5 x 103 therefor, and specially designed accessories in $ value Gy(Si) = 5 x 105 Rads (Si); 5 x 106 Gy (Si)/ components therefor. Related Controls: See also 4A994 s = 5 x 108 Rads (Si)/s. Related Definitions: N/A Items: a. Specially designed to have either of License Requirements Items: the following characteristics: Reason for Control: NS, MT, CC, AT, NP, XP Note 1: 4A003 includes the following:

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a. Vector processors; ‘‘electronic assemblies’’ inherently limited by CIV: N/A b. Array processors; nature of their design for use as related List of Items Controlled c. Digital signal processors; equipment controlled by 4A003.d, 4A003.e Unit: Equipment in number d. Logic processors; or 4A003.f. Related Controls: N/A e. Equipment designed for ‘‘image Note 2: 4A003.c does not control Related Definitions: N/A enhancement’’; ‘‘electronic assemblies’’ specially designed Items: a. Rated for continuous operation at f. Equipment designed for ‘‘signal for a product or family of products whose temperatures from below 228 K (¥45° C) to processing’’. maximum configuration does not exceed the above 328 K (+55° C); or Note 2: The control status of the ‘‘digital limit of 4A003.b. b. Designed as ruggedized or ‘‘radiation computers’’ and related equipment described d. Graphics accelerators and graphics hardened’’. in 4A003 is determined by the control status coprocessors exceeding a ‘‘three dimensional of other equipment or systems provided: Vector Rate’’ of 3,000,000; 4A102 ``Hybrid computers'' specially a. The ‘‘digital computers’’ or related e. Equipment performing analog-to-digital designed for modelling, simulation or equipment are essential for the operation of conversions exceeding the limits in design integration of ``missiles''. (These the other equipment or systems; 3A001.a.5; items are subject to the export licensing b. The ‘‘digital computers’’ or related f. Equipment containing ‘‘terminal authority of the U.S. Department of State, equipment are not a ‘‘principal element’’ of interface equipment’’ exceeding the limits in Office of Defense Trade Controls. See 22 the other equipment or systems; and 5A001.b.3; CFR part 121.) N.B. 1: The control status of ‘‘signal Note: For the purposes of 4A003.f, processing’’ or ‘‘image enhancement’’ 4A980 Computers for fingerprint ‘‘terminal interface equipment’’ includes equipment, n.e.s. equipment specially designed for other ‘‘local area network’’ interfaces and other equipment with functions limited to those communications interfaces. ‘‘Local area License Requirements required for the other equipment is network’’ interfaces are evaluated as Reason for Control: CC, AT determined by the control status of the other ‘‘network access controllers’’. equipment even if it exceeds the ‘‘principal g. Equipment specially designed to provide Control(s) Country Chart element’’ criterion. external interconnection of ‘‘digital N.B. 2: For the control status of ‘‘digital computers’’ or associated equipment that CC applies to entire entry CC Column 1 computers’’ or related equipment for AT applies to entire entry AT Column 1 allows communications at data rates telecommunications equipment, see Category exceeding 80 Mbyte/s. License Exceptions 5, Part 1 (Telecommunications). c. The ‘‘technology’’ for the ‘‘digital Note: 4A003.g does not control internal LVS: N/A computers’’ and related equipment is interconnection equipment (e.g., backplanes, GBS: N/A determined by 4E. buses) or passive interconnection equipment. CIV: N/A List of Items Controlled a. Designed or modified for ‘‘fault 4A004 Computers, as follows (see List of tolerance’’; Items Controlled) and specially designed Unit: Equipment in number Note: For the purposes of 4A003.a., ‘‘digital related equipment, ``electronic assemblies'' Related Controls: N/A computers’’ and related equipment are not and components therefor. Related Definitions: N/A considered to be designed or modified for Items: The list of items controlled is License Requirements ‘‘fault tolerance’’ if they utilize any of the contained in the ECCN heading. Reason for Control: NS, AT following: 4A994 Computers, ``electronic 1. Error detection or correction algorithms Control(s) Country Chart assemblies'', and related equipment not in ‘‘main storage’’; controlled by 4A001, 4A002, or 4A003, and 2. The interconnection of two ‘‘digital NS applies to entire entry NS Column 2 specially designed components therefor. computers’’ so that, if the active central AT applies to entire entry AT Column 1 License Requirements processing unit fails, an idling but mirroring central processing unit can continue the License Exceptions Reason for Control: AT system’s functioning; LVS: $5000 3. The interconnection of two central GBS: N/A Control(s) Country Chart processing units by data channels or by use CIV: N/A AT applies to entire entry AT Column 1 of shared storage to permit one central List of Items Controlled processing unit to perform other work until Unit: Equipment in number; parts and License Exceptions the second central processing unit fails, at accessories in $ value LVS: N/A which time the first central processing unit Related Controls: N/A GBS: N/A takes over in order to continue the system’s Related Definitions: N/A CIV: N/A functioning; or Items: a. ‘‘Systolic array computers’’; List of Items Controlled 4. The synchronization of two central b. ‘‘Neural computers’’; Unit: Equipment in number; parts and processing units by ‘‘software’’ so that one c. ‘‘Optical computers’’. central processing unit recognizes when the accessories in $ value other central processing unit fails and Related Controls: N/A 4A101 Analog computers, ``digital Related Definitions: N/A recovers tasks from the failing unit. computers'' or digital differential analyzers, Items: a. Electronic computers and related b. ‘‘Digital computers’’ having a other than those controlled by 4A001 equipment, and ‘‘electronic assemblies’’ and ‘‘composite theoretical performance’’ designed or modified for use in ``missiles'', specially designed components therefor, (‘‘CTP’’) exceeding 2,000 million theoretical having any of the following (see List of rated for operation at an ambient temperature operations per second (Mtops); Items Controlled). above 343 K (70° C); c. ‘‘Electronic assemblies’’ specially License Requirements b. ‘‘Digital computers’’ having a designed or modified to be capable of Reason for Control: MT, AT ‘‘composite theoretical performance’’ enhancing performance by aggregation of (‘‘CTP’’) equal to or greater than 6 million ‘‘computing elements’’ (‘‘CEs’’) so that the Control(s) Country Chart theoretical operations per second (Mtops); ‘‘CTP’’ of the aggregation exceeds the limit in c. ‘‘Assemblies’’ not controlled by 4A003 4A003.b.; MT applies to entire entry MT Column 1 that are specially designed or modified to Note 1: 4A003.c applies only to ‘‘electronic AT applies to entire entry AT Column 1 enhance performance by aggregation of assemblies’’ and programmable ‘‘computing elements’’ (‘‘Ces’’), as follows: interconnections not exceeding the limit in License Exceptions c.1. Designed to be capable of aggregation 4A003.b. when shipped as unintegrated LVS: N/A in configurations of 16 or more ‘‘computing ‘‘electronic assemblies’’. It does not apply to GBS: N/A elements’’ (‘‘Ces’’); or

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c.2. Having a sum of maximum data rates Control(s) Country Chart Control(s) Country Chart on all channels available for connection to associated processors exceeding 40 million AT applies to entire entry AT Column 1 MT applies to ‘‘software’’ MT Column 1 Bytes/s; for equipment con- License Exceptions Note 1: 4A994.c applies only to ‘‘electronic trolled by 4A001 to assemblies’’ and programmable LVS: N/A 4A003 for MT reasons. interconnections with a ‘‘CTP’’ not exceeding GBS: N/A CC applies to ‘‘software’’ CC Column 1 the limits in 4A994.b, when shipped as CIV: N/A for equipment con- unintegrated ‘‘electronic assemblies’’. It does List of Items Controlled trolled by 4A003 for CC not apply to ‘‘electronic assemblies’’ Unit: $ value reasons. inherently limited by nature of their design Related Controls: This entry does not control AT applies to entire entry AT Column 1 for use as related equipment controlled by general-purpose sputtering equipment. NP applies to ‘‘software’’ for computers 4A994. Related Definition: N/A with a CTP greater than 2,000 Mtops, unless Note 2: 4A994.c does not control any Items: a. Equipment specially designed for a License Exception is available. See ‘‘electronic assembly’’ specially designed for the application of magnetic coating to § 742.3(b) of the EAR for information on a product or family of products whose controlled non-flexible (rigid) magnetic or applicable licensing review policies. maximum configuration does not exceed the magneto-optical media; XP applies to ‘‘software’’ for computers limits of 4A994.b. b. ‘‘Stored program controlled’’ equipment with a CTP greater than 2,000 Mtops, unless d. Disk drives and solid state storage specially designed for monitoring, grading, a License Exception is available. See equipment: exercising or testing controlled rigid § 742.3(b) of the EAR for information on d.1. Magnetic, erasable optical or magneto- magnetic media; applicable licensing review policies. optical disk drives with a ‘‘maximum bit c. Equipment specially designed for the License Requirement Notes: See § 743.1 of transfer rate’’ exceeding 25 million bit/s; ‘‘production’’ or alignment of heads or head/ the EAR for reporting requirements for d.2. Solid state storage equipment, other disk assemblies for controlled rigid magnetic exports under License Exceptions. than ‘‘main storage’’ (also known as solid and magneto-optical storage, and electro- License Exceptions state disks or RAM disks), with a ‘‘maximum mechanical or optical components therefor. CIV: N/A bit transfer rate’’ exceeding 36 million bit/s; TSR: Yes, except N/A for MT and for e. Input/output control units designed for C. Materials ‘‘software’’ for equipment or ‘‘software’’ use with equipment controlled by 4A994.d; 4C994 Materials specially formulated for requiring a license and except for f. Equipment for ‘‘signal processing’’ or and required for the fabrication of head/disk ‘‘software’’ specially designed for the ‘‘image enhancement’’, not controlled by assemblies for controlled magnetic and ‘‘development’’, or ‘‘production’’ of 4A003, having a ‘‘composite theoretical magneto-optical hard disk drives. equipment controlled as follows, for performance’’ (‘‘CTP’’) exceeding 8.5 million exports and reexports to destinations theoretical operations per second (Mtops); License Requirements outside of Austria, Belgium, Canada, g. Graphics accelerators or graphics Reason for Control: AT Denmark, Finland, France, Germany, coprocessors, not controlled by 4A003, that Greece, Ireland, Italy, Luxembourg, the exceeds a ‘‘3–D vector rate’’ of 400,000 or, if Control(s) Country Chart Netherlands, Portugal, Spain, Sweden, or supported by 2–D vectors only, a ‘‘2–D vector the United Kingdom: (a) ‘‘Digital’’ rate’’ of 600,000; AT applies to entire entry AT Column 1 computers controlled by 4A003.b and having a CTP exceeding 10,000 MTOPS; or Note: The provisions of 4A994.g do not License Exceptions (b) ‘‘Electronic assemblies’’ controlled by apply to work stations designed for and LVS: N/A 4A003.c and capable of enhancing limited to: GBS: N/A performance by aggregation of ‘‘computing a. Graphic arts (e.g., printing, publishing); CIV: N/A elements’’ so that the CTP of the and List of Items Controlled aggregation exceeds 10,000 MTOPS. b. The display of two-dimensional vectors. Unit: $ value List of Items Controlled h. Color displays or monitors having more Related Controls: N/A Unit: $ value than 120 resolvable elements per cm in the Related Definitions: N/A Related Controls: N/A direction of the maximum pixel density; Items: The list of items controlled is Related Definitions: N/A Note 1: 4A994.h does not control displays contained in the ECCN heading. Items: The list of items controlled is or monitors not specially designed for contained in the ECCN heading. electronic computers. D. Software Note 2: Displays specially designed for air Note: The control status of ‘‘software’’ for 4D002 ``Software'' specially designed or traffic control (ATC) systems are treated as the ‘‘development’’, ‘‘production’’, or ‘‘use’’ modified to support ``technology'' specially designed components for ATC of equipment described in other Categories is controlled by 4E (except 4E980, 4E992, and systems under Category 6. dealt with in the appropriate Category. The 4E993). i. Equipment containing ‘‘terminal control status of ‘‘software’’ for equipment License Requirements interface equipment’’ exceeding the limits in described in this Category is dealt with Reason for Control: NS, MT, AT, NP, XP 5A991. herein. Control(s) Country Chart Note: For the purposes of 4A994.i, 4D001 ``Software'' specially designed or ‘‘terminal interface equipment’’ includes modified for the ``development'', NS applies to entire entry NS Column 1 ‘‘local area network’’ interfaces, modems and ``production'' or ``use'' of equipment or other communications interfaces. ‘‘Local area MT applies to ‘‘software’’ MT Column 1 ``software'' controlled by 4A001 to 4A004, or for equipment con- network’’ interfaces are evaluated as 4D (except 4D993 or 4D994). ‘‘network access controllers’’. trolled by 4E for MT License Requirements reasons. B. Test, Inspection and Production Reason for Control: NS, MT, CC, AT, NP, XP AT applies to entire entry AT Column 1 Equipment NP applies to ‘‘software’’ for computers 4B994 Equipment for the ``development'' Control(s) Country Chart with a CTP greater than 2,000 Mtops, unless and ``production'' of magnetic and optical a License Exception is available. See storage equipment. NS applies to ‘‘software’’ NS Column 1 § 742.3(b) of the EAR for information on for equipment con- applicable licensing review policies. License Requirements trolled by 4A001 to XP applies to ‘‘software’’ for computers Reason for Control: AT 4A004, 4D001 to 4D003. with a CTP greater than 2,000 Mtops, unless

VerDate 02-DEC-97 16:47 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00065 Fmt 4701 Sfmt 4700 E:\FR\FM\P15JA0.PT2 15jar2 2516 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Rules and Regulations a License Exception is available. See 4D980 ``Software'' specially designed for Related Definitions: N/A § 742.3(b) of the EAR for information on the ``development'', ``production'', or ``use'' Items: The list of items controlled is applicable licensing review policies. of items controlled by 4A980. contained in the ECCN heading. License Exceptions License Requirements E. Technology CIV: N/A Reason for Control: CC, AT TSR: Yes, except N/A for MT and for 4E001 ``Technology'' according to the ‘‘software’’ specifically designed or Control(s) Country Chart General Technology Note, for the modified to support ‘‘technology’’ for ``development'', ``production'' or ``use'' of computers requiring a license. CC applies to entire entry CC Column 1 equipment or ``software'' controlled by 4A List of Items Controlled AT applies to entire entry AT Column 1 or 4D (except 4A980, 4A993 or 4A994). Unit: $ value License Exceptions License Requirements Related Controls: N/A CIV: N/A Reason for Control: NS, MT, CC, AT, NP, XP Related Definitions: N/A TSR: N/A Items: The list of items controlled is Control(s) Country Chart contained in the ECCN heading. List of Items Controlled Unit: $ value NS applies to ‘‘tech- NS Column 1 4D003 Specific ``software'', as follows (see Related Controls: N/A nology’’ for equipment List of Items Controlled). Related Definitions: N/A controlled by 4A001 to License Requirements Items: The list of items controlled is 4A004, 4D001 to 4D003. contained in the ECCN heading. Reason for Control: NS, AT MT applies to ‘‘tech- MT Column 1 nology’’ for items con- 4D993 ``Program'' proof and validation trolled by 4A001 to Control(s) Country Chart ``software'', ``software'' allowing the 4A003, 4A101, 4D001, automatic generation of ``source codes'', 4D102 or 4D002 for MT NS applies to entire entry NS Column 1 and operating system ``software'' not AT applies to entire entry AT Column 1 reasons. controlled by 4D003 that are specially CC applies to ‘‘tech- CC Column 1 License Requirement Notes: See § 743.1 of designed for real time processing nology’’ for equipment the EAR for reporting requirements for equipment. controlled by 4A003 for exports under License Exception. License Requirements CC reasons. License Exceptions Reason for Control: AT AT applies to entire entry AT Column 1 CIV: N/A NP applies to ‘‘technology’’ for computers TSR: Yes, except 4D003.c Control(s) Country Chart with a CTP greater than 2,000 Mtops, unless List of Items Controlled a License Exception is available. See Unit: $ value AT applies to entire entry AT Column 1 § 742.3(b) of the EAR for information on Related Controls: N/A License Exceptions applicable licensing review policies. Related Definitions: N/A CIV: N/A XP applies to ‘‘technology’’ for computers Items: a. Operating system ‘‘software’’, TSR: N/A with a CTP greater than 2,000 Mtops, unless ‘‘software’’ development tools and compilers a License Exception is available. See List of Items Controlled specially designed for ‘‘multi-data-stream § 742.3(b) of the EAR for information on processing’’ equipment, in ‘‘source code’’; Unit: $ value applicable licensing review policies. b. ‘‘Expert systems’’ or ‘‘software’’ for Related Controls: N/A License Requirement Notes: See § 743.1 of ‘‘expert system’’ inference engines providing Related Definitions: N/A the EAR for reporting requirements for both: Items: a. ‘‘Program’’ proof and validation exports under License Exceptions. ‘‘software’’ using mathematical and b.1. Time dependent rules; and License Exceptions b.2. Primitives to handle the time analytical techniques and designed or characteristics of the rules and the facts; modified for ‘‘programs’’ having more than CIV: N/A c. ‘‘Software’’ having characteristics or 500,000 ‘‘source code’’ instructions; TSR: Yes for ‘‘technology’’ directly related for performing functions exceeding the limits in b. ‘‘Software’’ allowing the automatic hardware under a License Exception. N/A Category 5, Part 2 (‘‘Information Security’’); generation of ‘‘source codes’’ from data for MT and for ‘‘technology’’ for the d. Operating systems specially designed for acquired on line from external sensors ‘‘development’’ or ‘‘production’’ of ‘‘real time processing’’ equipment that described in the Commerce Control List; equipment or ‘‘software’’ for export and guarantees a ‘‘global interrupt latency time’’ c. Operating system ‘‘software’’ not reexport to destinations outside of Austria, of less than 20 µs. controlled by 4D003 that are specially Belgium, Canada, Denmark, Finland, designed for ‘‘real time processing’’ France, Germany, Greece, Ireland, Italy, 4D102 ``Software'' specially designed or equipment that guarantees a ‘‘global interrupt Luxembourg, the Netherlands, Portugal, modified for the ``development'', latency time’’ of less than 30 microseconds. Spain, Sweden, or the United Kingdom of ``production'' or ``use'' of equipment ‘‘technology’’ for: (a) ‘‘Digital’’ computers controlled by 4A101. 4D994 ``Software'' specially designed or controlled by 4A003.b and having a CTP modified for the ``development'', License Requirements exceeding 10,000 MTOPS; or (b) ``production'', or ``use'' of equipment ‘‘Electronic assemblies’’ controlled by Reason for Control: MT, AT controlled by 4A994, 4B994 and materials 4A003.c and capable of enhancing controlled by 4C994. performance by aggregation of ‘‘computing Control(s) Country Chart License Requirements elements’’ so that the CTP of the aggregation exceeds 10,000 MTOPS. MT applies to entire entry MT Column 1 Reason for Control: AT AT applies to entire entry AT Column 1 List of Items Controlled Unit: N/A License Exceptions Control(s) Country Chart Related Controls: N/A CIV: N/A AT applies to entire entry AT Column 1 Related Definitions: N/A TSR: N/A Items: The list of items controlled is License Exceptions List of Items Controlled contained in the ECCN heading. Unit: $ value CIV: N/A Related Controls: N/A TSR: N/A 4E980 ``Technology'' for the Related Definitions: N/A List of Items Controlled ``development'', ``production'', or ``use'' of Items: The list of items controlled is Unit: $ value items controlled by 4A980. contained in the ECCN heading. Related Controls: N/A License Requirements

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Reason for Control: CC, AT Reason for Control: AT L word length adjustment * multiply Control(s) Country Chart Control(s) Country Chart Execution time t is expressed in microseconds, TP and ‘‘CTP’’ are expressed CC applies to entire entry CC Column 1 AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 in millions of theoretical operations per License Exceptions second (Mtops) and WL is expressed in bits. License Exceptions CIV: N/A Outline of ‘‘CTP’’ Calculation Method CIV: N/A TSR: N/A TSR: N/A List of Items Controlled ‘‘CTP’’ is a measure of computational List of Items Controlled performance given in Mtops. In calculating Unit: N/A Unit: N/A Related Controls: N/A the ‘‘CTP’’ of an aggregation of ‘‘CEs’’ the Related Controls: N/A Related Definitions: N/A following three steps are required: Related Definitions: N/A Items: a. ‘‘Technology’’ for the 1. Calculate the effective calculating rate R Items: The list of items controlled is for each ‘‘CE’’; contained in the ECCN heading. ‘‘development’’ or ‘‘production’’ of graphics accelerators; 2. Apply the word length adjustment (L) to 4E992 ``Technology'' for the b. ‘‘Technology’’, for the ‘‘development’’ or the effective calculating rate (R), resulting in ``development'', ``production'', or ``use'' of ‘‘production’’ of equipment designed for a Theoretical Performance (TP) for each equipment controlled by 4A994 and 4B994, ‘‘multi-data-stream processing’’; ‘‘CE’’; materials controlled by 4C994, or c. ‘‘Technology’’, ‘‘required’’ for the 3. If there is more than one ‘‘CE’’, combine ``software'' controlled by 4D993 or 4D994. ‘‘development’’ or ‘‘production’’ of magnetic the TPs, resulting in a ‘‘CTP’’ for the License Requirements hard disk drives with a ‘‘maximum bit aggregation. transfer rate’’ (‘‘MBTR’’) exceeding 11 Reason for Control: AT Details for these steps are given in the Mbit/s. following sections. Control(s) Country Chart EAR99 Items subject to the EAR that are Note 1: For aggregations of multiple ‘‘CEs’’ not elsewhere specified in this CCL that have both shared and unshared memory AT applies to entire entry AT Column 1 Category or in any other category in the subsystems, the calculation of ‘‘CTP’’ is License Exceptions CCL are designated by the number EAR99. completed hierarchically, in two steps: first, CIV: N/A Technical Note: ‘‘COMPOSITE aggregate the groups of ‘‘CEs’’ sharing TSR: N/A THEORETICAL PERFORMANCE’’ (‘‘CTP’’). memory; second, calculate the ‘‘CTP’’ of the List of Items Controlled groups using the calculation method for Abbreviations used in this Technical Note Unit: N/A multiple ‘‘CEs’’ not sharing memory. Related Controls: See also 4E994 ‘‘CE’’ ‘‘computing element’’ (typically an Note 2: ‘‘CEs’’ that are limited to input/ Related Definitions: N/A arithmetic logical unit) output and peripheral functions (e.g., disk Items: The list of items controlled is FP floating point drive, communication and video display contained in the ECCN heading. XP fixed point controllers) are not aggregated into the ‘‘CTP’’ t execution time calculation. 4E993 Other ``Technology'' for the XOR exclusive OR ``development'' or ``production'' of graphics CPU central processing unit The following table shows the method of accelerators or equipment designed for TP theoretical performance (of a single calculating the Effective Calculating Rate R ``multi-data-stream processing'' and ‘‘CE’’) for each ‘‘CE’’: ``technology'' ``required'' for the ‘‘CTP’’ ‘‘composite theoretical Step 1: The effective calculating rate R ``development'' or ``production'' of performance’’ (multiple ‘‘CEs’’) magnetic hard disk drives. R effective calculating rate License Requirements WL word length

Effective calculating Rate, R

XP only ...... 1÷3 * (txp add), if no add is implemented use: (Rxp) ...... 1÷ (txp mult) If neither add nor multiply is implemented use the fast- est available arithmetic operation as follows: 1÷3 * txp. See Notes X & Z. FP only (Rfp) ...... max 1÷tfp add, 1÷tfp mult, See Notes X & Y. Both FP and XP (R) ...... Calculate both Rxp, Rfp. For simple logic processors not implementing any of the specified 1÷3 * tlog. Where tlog is the execute time of the XOR, or for logic arithmetic operations. hardware not implementing the XOR, the fastest simple logic op- eration. See Notes X & Z. For special logic processors not using any of the specified arithmetic R = R′ * WL/64. Where R′ is the number of results per second, WL or logic operations. is the number of bits upon which the logic operation occurs, and 64 is a factor to normalize to a 64 bit operation.

Note W: For a pipelined ‘‘CE’’ capable of logic operations per cycle), the execution (e.g., a ‘‘CE’’ performing an addition and a executing up to one arithmetic or logic time t is given by: multiplication in one cycle is to be treated as operation every clock cycle after the pipeline two ‘‘CEs’’, the first performing an addition cycle time is full, a pipelined rate can be established. t = in one cycle and the second performing a The effective calculating rate (R) for such a the number of identical operations multiplication in one cycle). If a single ‘‘CE’’ ‘‘CE’’ is the faster of the pipelined rate or per machine cycle has both scalar function and vector function, non-pipelined execution rate. use the shorter execution time value. ‘‘CEs’’ that perform different types of Note X: For a ‘‘CE’’ that performs multiple arithmetic or logic operations in a single Note Y: For the ‘‘CE’’ that does not operations of a specific type in a single cycle machine cycle are to be treated as multiple implement FP add or FP multiply, but that (e.g., two additions per cycle or two identical separate ‘‘CEs’’ performing simultaneously performs FP divide:

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= 1 possible combination of ‘‘CEs’’ that provides Note 2: ‘‘CEs’’ share memory if they access Rfp the largest ‘‘CTP’’ should be used. The TP of a common segment of solid state memory. t fpdivide each contributing ‘‘CE’’ is to be calculated at This memory may include cache memory, If the ‘‘CE’’ implements FP reciprocal but its maximum value theoretically possible main memory or other internal memory. not FP add, FP multiply or FP divide, then before the ‘‘CTP’’ of the combination is Peripheral memory devices such as disk derived. drives, tape drives or RAM disks are not N.B.: To determine the possible included. = 1 Rfp combinations of simultaneously operating For Multiple ‘‘CEs’’ or groups of ‘‘CEs’’ not t fpreciprocal ‘‘CEs’’, generate an instruction sequence that sharing memory, interconnected by one or If none of the specified instructions is initiates operations in multiple ‘‘CEs’’, more data channels: implemented, the effective FP rate is 0. beginning with the slowest ‘‘CE’’ (the one Ci=0.75 * ki (i=2, * * * , 32) (see Note needing the largest number of cycles to Note Z: In simple logic operations, a single below) complete its operation) and ending with the instruction performs a single logic =0.60 * ki (i=33, * * *, 64) fastest ‘‘CE’’. At each cycle of the sequence, manipulation of no more than two operands =0.45 * ki (i=65, * * *, 256) the combination of ‘‘CEs’’ that are in of given lengths. In complex logic operations, =0.30 * ki (i >256) a single instruction performs multiple logic operation during that cycle is a possible The value of Ci is based on the number of manipulations to produce one or more results combination. The instruction sequence must ‘‘CE’’s, not the number of nodes. from two or more operands. take into account all hardware and/or where architectural constraints on overlapping Rates should be calculated for all ki=min (Si/Kr, 1), and supported operand lengths considering both operations. Kr=normalizing factor of 20 MByte/s. pipelined operations (if supported), and non- Note 2: A single integrated circuit chip or Si=sum of the maximum data rates (in pipelined operations using the fastest board assembly may contain multiple ‘‘CEs’’. units of MByte/s) for all data channels executing instruction for each operand length Note 3: Simultaneous operations are connected to the ith ‘‘CE’’ or group of based on: assumed to exist when the computer ‘‘CEs’’ sharing memory. 1. Pipelined or register-to-register manufacturer claims concurrent, parallel or When calculating a Ci for a group of ‘‘CEs’’, operations. Exclude extraordinarily short simultaneous operation or execution in a the number of the first ‘‘CE’’ in a group execution times generated for operations on manual or brochure for the computer. determines the proper limit for Ci. For a predetermined operand or operands (for Note 4: ‘‘CTP’’ values are not to be example, in an aggregation of groups example, multiplication by 0 or 1). If no aggregated for ‘‘CE’’ combinations (inter) consisting of 3 ‘‘CEs’’ each, the 22nd group register-to-register operations are connected by ‘‘Local Area Networks’’, Wide will contain ‘‘CE’’64, ‘‘CE’’65 and ‘‘CE’’66. The implemented, continue with (2). Area Networks, I/O shared connections/ proper limit for Ci for this group is 0.60. 2. The faster of register-to-memory or devices, I/O controllers and any Aggregation (of ‘‘CEs’’ or groups of ‘‘CEs’’) memory-to-register operations; if these also communication interconnection should be from the fastest-to-slowest; i.e.: do not exist, then continue with (3). implemented by ‘‘software’’. ≥ ≥ 3. Memory-to-memory. TP1 TP2 * * * . >TPn, and Note 5: ‘‘CTP’’ values must be aggregated In each case above, use the shortest in the case of TPi=TPi+1, from the largest to for multiple ‘‘CEs’’ specially designed to execution time certified by the manufacturer. smallest; i.e.: enhance performance by aggregation, Step 2: TP for each supported operand Ci ≥ Ci+1 length WL. operating simultaneously and sharing Note: The ki factor is not to be applied to Adjust the effective rate R (or R’) by the memory,—or multiple memory/’’CE’’— ‘‘CEs’’ 2 to 12 if the TPi of the ‘‘CE’’ or group word length adjustment L as follows: combinations operating simultaneously utilizing specially designed hardware. of ‘‘CEs’’ is more than 50 Mtops; i.e., Ci for TP = R * L, where L = (1/3 + WL/96) This aggregation does not apply to ‘‘CEs’’ 2 to 12 is 0.75. Note: The word length WL used in these ‘‘electronic assemblies’’ described by calculations is the operand length in bits. (If Category 5—Telecommunications and 4A003.d. an operation uses operands of different ‘‘Information Security’’ ‘‘CTP’’=TP1+C2 * TP2+* * *+Cn * TPn, lengths, select the largest word length.) The I. Telecommunications combination of a mantissa ALU and an where the TPs are ordered by value, with TP1 Notes: 1. The control status of components, exponent ALU of a floating point processor being the highest, TP2 being the second ‘‘lasers’’, test and ‘‘production’’ equipment, or unit is considered to be one ‘‘CE’’ with a highest, * * *, and TPn being the lowest. Ci Word Length (WL) equal to the number of is a coefficient determined by the strength of materials and ‘‘software’’ therefor which are bits in the data representation (typically 32 the interconnection between ‘‘CEs’’, as specially designed for telecommunications or 64) for purposes of the ‘‘CTP’’ calculation. follows: equipment or systems is determined in Category 5, Part 1. This adjustment is not applied to For multiple ‘‘CEs’’ operating 2. ‘‘Digital computers’’, related equipment specialized logic processors that do not use simultaneously and sharing memory: XOR instructions. In this case TP = R. or ‘‘software’’, when essential for the C2=C3=C4=* * *=Cn=0.75 operation and support of telecommunications Select the maximum resulting value of TP Note 1: When the ‘‘CTP’’ calculated by the for: equipment described in this Category, are above method does not exceed 194 Mtops, regarded as specially designed components, Each XP-only ‘‘CE’’ (Rxp); the following formula may be used to provided they are the standard models Each FP-only ‘‘CE’’ (Rfp); calculate Ci: customarily supplied by the manufacturer. Each combined FP and XP ‘‘CE’’ (R); This includes operation, administration, Each simple logic processor not 0. 75 maintenance, engineering or billing computer implementing any of the specified = = Ci (i 2 , . . . , n) systems. arithmetic operations; and m Each special logic processor not using any of where m=the number of ‘‘CEs’’ or groups of A. Systems, Equipment and Components the specified arithmetic or logic operations. ‘‘CEs’’ sharing access. 5A001 Telecommunications systems, Step 3: ‘‘CTP’’ for aggregations of ‘‘CEs’’, Provided: equipment, and components. including CPUs. 1. The TP1 of each ‘‘CE’’ or group of ‘‘CEs’’ For a CPU with a single ‘‘CE’’, ‘‘CTP’’ = TP does not exceed 30 Mtops; License Requirements (for ‘‘CEs’’ performing both fixed and floating 2. The ‘‘CEs’’ or groups of ‘‘CEs’’ share Reason for Control: NS, AT point operations TP = max (TPfp, TPxp)) access to main memory (excluding cache ‘‘CTP’’ for aggregations of multiple ‘‘CEs’’ memory) over a single channel; and Control(s) Country Chart operating simultaneously is calculated as 3. Only one ‘‘CE’’ or group of ‘‘CEs’’ can follows: have use of the channel at any given time. NS applies to 5A001.a ...... NS Column 1 Note 1: For aggregations that do not allow N.B.: This does not apply to items NS applies to 5A001.b, .c, NS Column 2 all of the ‘‘CEs’’ to run simultaneously, the controlled under Category 3. .d, or .e.

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Control(s) Country Chart integrated and operated in any satellite b.7.a. Incorporating adaptive techniques system for civil use. providing more than 15 dB suppression of an AT applies to entire entry AT Column 1 b.2. Being underwater communications interfering signal; or b.7.b. Having all of the following: License Requirement Notes: See § 743.1 of systems having any of the following b.7.b.1. Automatically predicting and the EAR for reporting requirements for characteristics: selecting frequencies and ‘‘total digital exports under License Exceptions. b.2.a. An acoustic carrier frequency outside the range from 20 kHz to 60 kHz; transfer rates’’ per channel to optimize the License Exceptions b.2.b. Using an electromagnetic carrier transmission; and LVS: N/A for 5A001.a and b.9; frequency below 30 kHz; or b.7.b.2. Incorporating a linear power $5000 for 5A001.b.1 to b.8 and b.10, .c, and b.2.c. Using electronic beam steering amplifier configuration having a capability to .e techniques; support multiple signals simultaneously at $3000 for 5A001.d b.3. Being equipment containing any of the an output power of 1 kW or more in the 1.5 GBS: Yes, except 5A001.a and b.9 following: MHz to 30 MHz frequency range or 250 W CIV: Yes, except 5A001.a, b.8, and b.9 b.3.a. ‘‘Network access controllers’’ and or more in the 30 MHz to 87.5 MHz List of Items Controlled their related common medium having a frequency range, over an ‘‘instantaneous Unit: Equipment in number; parts and ‘‘digital transfer rate’’ exceeding 156 Mbit/s; bandwidth’’ of one octave or more and with accessories in $ value or an output harmonic and distortion content of Related Controls: See also 5A101 and 5A991 b.3.b. ‘‘Communication channel better than -80 dB; Related Definitions: N/A controllers’’ with a digital output having a b.8. Being radio equipment employing Items: a. Any type of telecommunications ‘‘data signalling rate’’ exceeding 2.1 Mbit/s ‘‘spread spectrum’’ or ‘‘frequency agility’’ equipment having any of the following per channel; (frequency hopping) techniques having any characteristics, functions or features: Note: If any uncontrolled equipment of the following characteristics: a.1. Specially designed to withstand contains a ‘‘network access controller’’, it b.8.a. User programmable spreading codes; transitory electronic effects or cannot have any type of telecommunications or electromagnetic pulse effects, both arising interface, except those described in, but not b.8.b. A total transmitted bandwidth which from a nuclear explosion; controlled by 5A001.b.3. is 100 or more times the bandwidth of any a.2. Specially hardened to withstand b.4. Employing a ‘‘laser’’ and having any of one information channel and in excess of 50 gamma, neutron or ion radiation; or kHz; a.3. Specially designed to operate outside the following characteristics: the temperature range from 218 K (¥55°C) to b.4.a. A transmission wavelength Note: 5A001.b.8.b does not control cellular 397 K (124°C). exceeding 1,000 nm; or radio equipment operating in civil bands. Note: 5A001.a.3 applies only to electronic b.4.b. Employing analog techniques and Note: 5A001.b.8 does not control equipment. having a bandwidth exceeding 45 MHz; equipment operating at an output power of Note: 5A001.a.2 and 5A001.a.3 do not Note: 5A001.b.4.b does not control 1.0 Watt or less. apply to equipment on board satellites. commercial TV systems. b.9. Being digitally controlled radio b. Telecommunication transmission b.4.c. Employing coherent optical receivers having all of the following: equipment and systems, and specially transmission or coherent optical detection b.9.a. More than 1,000 channels; designed components and accessories techniques (also called optical heterodyne or b.9.b. A ‘‘frequency switching time’’ of less therefor, having any of the following homodyne techniques); than 1 ms; characteristics, functions or features: b.4.d. Employing wavelength division b.9.c. Automatic searching or scanning of Note: Telecommunication transmission multiplexing techniques; or a part of the electromagnetic spectrum; and equipment: b.4.e. Performing ‘‘optical amplification’’; b.9.d. Identification of the received signals a. Categorized as follows, or combinations b.5. Being radio equipment operating at or the type of transmitter; or thereof: input or output frequencies exceeding 31 Note: 5A001.b.9 does not control cellular 1. Radio equipment (e.g., transmitters, GHz; radio equipment operating in civil bands. receivers and transceivers); Note: 5A001.b.5 does not control b.10. Employing functions of digital 2. Line terminating equipment; equipment designed or modified for ‘‘signal processing’’ to provide voice coding 3. Intermediate amplifier equipment; operation in any ITU allocated band. at rates of less than 2,400 bit/s. 4. Repeater equipment; b.6. Being radio equipment employing any c. ‘‘Stored program controlled’’ switching 5. Regenerator equipment; of the following: equipment and related signalling systems, 6. Translation encoders (transcoders); b.6.a. Quadrature-amplitude-modulation 7. Multiplex equipment (statistical having any of the following characteristics, (QAM) techniques above level 4 if the ‘‘total mutiplex included); functions or features, and specially designed digital transfer rate’’ exceeds 8.5 Mbit/s; 8. Modulators/demodulators (modems); components and accessories therefor: b. QAM techniques above level 16 if the 9. Transmultiplex equipment (see CCITT Note: Statistical multiplexers with digital Rec. G701); ‘‘total digital transfer rate’’ is equal to or less input and digital output which provide 10. ‘‘Stored program controlled’’ digital than 8.5 Mbit/s; or switching are treated as ‘‘stored program crossconnection equipment; c. Other digital modulation techniques and controlled’’ switches. 11. ‘‘Gateways’’ and bridges; having a ‘‘spectral efficiency’’ exceeding 3 bit/sec/Hz; c.1. ‘‘Common channel signalling’’ 12. ‘‘Media access units’’; and operating in either non-associated or quasi- b. Designed for use in single or multi- Notes: 1. 5A001.b.6 does not control associated mode of operation; channel communication via any of the equipment specially designed to be c.2. ‘‘Dynamic adaptive routing’’; following: integrated and operated in any satellite Note: 5A001.c.2 does not control packet 1. Wire (line); system for civil use.02 switches or routers with ports or lines not 2. Coaxial cable; 2. 5A001.b.6 does not control radio relay 3. Optical fiber cable; equipment for operation in an ITU allocated exceeding the limits in 5A001.c.3. 4. Electromagnetic radiation; or band: c.3. Being packet switches, circuit switches 5. Underwater acoustic wave propagation. a. Having any of the following: and routers with ports or lines exceeding any b.1. Employing digital techniques, a.1. Not exceeding 960 MHz; or of the following: including digital processing of analog signals, a.2. With a ‘‘total digital transfer rate’’ not c.3.a. A ‘‘data signalling rate’’ of 2.1 Mbit/ and designed to operate at a ‘‘digital transfer exceeding 8.5 Mbit/s; and s per channel for a ‘‘communications channel rate’’ at the highest multiplex level exceeding b. Having a ‘‘spectral efficiency’’ not controller’’; or 45 Mbit/s or a ‘‘total digital transfer rate’’ exceeding 4 bit/sec/Hz. Note: 5A001.c.3.a does not control exceeding 90 Mbit/s; b.7. Being radio equipment operating in the multiplexed composite links composed only Note: 5A001.b.1 does not control 1.5 MHz to 87.5 MHz band and having any of communication channels not individually equipment specially designed to be of the following characteristics: controlled by 5A001.c.3.a.

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c.3.b. A ‘‘digital transfer rate’’ of 156 Mbit/ Accordingly, a column specific to this c. ‘‘Stored program controlled’’ switching s for a ‘‘network access controller’’ and control does not appear on the Commerce equipment and related signalling systems as related common medium; Country Chart. (See § 742.13 of the EAR for follows: c.4. ‘‘Optical switching’’; additional information on the scope of this c.1. ‘‘Data (message) switching’’ equipment c.5. Employing ‘‘Asynchronous Transfer control.) or systems designed for ‘‘packet-mode Mode’’ (‘‘ATM’’) techniques. Note: These items are subject to the United operation’’ and assemblies and components d. Optical fiber communication cables, Nations Security Council arms embargo therefor, n.e.s. optical fibers and accessories, as follows: against Rwanda described in § 746.8 of the c.2. Containing ‘‘Integrated Services Digital d.1. Optical fibers and optical fiber cables EAR. Network’’ (ISDN) functions and having any of of more than 50 m in length having any of License Exceptions the following: the following characteristics: c.2.a. Switch-terminal (e.g., subscriber line) LVS: N/A d.1.a. Designed for single mode operation; interfaces with a ‘‘digital transfer rate’’ at the GBS: N/A highest multiplex level exceeding 192,000 or CIV: N/A d.1.b. For optical fibers, specified by the bit/s, including the associated signalling manufacturer as being capable of List of Items Controlled channel (e.g., 2B+D); or withstanding a proof test tensile stress of Unit: $ value c.2.b. The capability that a signalling 2×109 N/m2 or more; Related Controls: N/A message received by a switch on a given Technical Note: Proof Test: on-line or off- Related Definitions: N/A channel that is related to a communication Items: The list of items controlled is line production screen testing that on another channel may be passed through contained in the ECCN heading. dynamically applies a prescribed tensile to another switch. stress over a 0.5 to 3 m length of fiber at a 5A991 Telecommunication equipment, not Note: 5A991.b. does not preclude the running rate of 2 to 5 m/s while passing controlled by 5A001. evaluation and appropriate actions taken by between capstans approximately 150 mm in the receiving switch or unrelated user diameter. The ambient temperature is a License Requirements message traffic on a D channel of ISDN. nominal 293 K (20° C) and relative humidity Reason for Control: AT c.3. Routing or switching of ‘‘datagram’’ 40%. packets; N.B.: Equivalent national standards may be Control(s) Country Chart c.4. Routing or switching of ‘‘fast select’’ used for executing the proof test. packets; AT applies to entire entry AT Column 1 d.2. Optical fiber cables and accessories Note: The restrictions in 5A991.c.3 and c.4 designed for underwater use. License Exceptions do not apply to networks restricted to using Note: 5A001.d.2 does not control standard LVS: N/A only ‘‘network access controllers’’ or to civil telecommunication cables and GBS: N/A ‘‘network access controllers’’ themselves. accessories. CIV: N/A c.5. Multi-level priority and pre-emption N.B.: For fiber-optic hull penetrators or List of Items Controlled for circuit switching; connectors, see 8A002.c. Unit: $ value Note: 5A991.c.5. does not control single- e. ‘‘Electronically steerable phased array Related Controls: N/A level call preemption. antennae’’ operating above 31 GHz. Related Definitions: N/A c.6. Designed for automatic hand-off of Note: 5A001.e does not control Items: a. Any type of telecommunications cellular radio calls to other cellular switches ‘‘electronically steerable phased array equipment, not controlled by 5A001.a, or automatic connection to a centralized antennae’’ for landing systems with specially designed to operate outside the subscriber data base common to more than temperature range from 219 K (¥54° C) to one switch; instruments meeting ICAO standards ° covering microwave landing systems (MLS). 397 K (124 C). c.7. Containing ‘‘stored program b. Transmission equipment, as follows: controlled’’ digital crossconnect equipment 5A101 Telemetering and telecontrol b.1. Modems using the ‘‘bandwidth of one with ‘‘digital transfer rate’’ exceeding 8.5 equipment usable for ``missiles''. voice channel’’ with a ‘‘data signalling rate’’ Mbit/s per port. exceeding 9,600 bits per second; License Requirements c.8. Being packet switches, circuit switches b.2. ‘‘Communication channel controllers’’ and routers with ports or lines exceeding any Reason for Control: MT, AT with a digital output having a ‘‘data of the following: signalling rate’’ exceeding 64,000 bit/s per c.8.a. A ‘‘data signalling rate’’ of 64,000 bit/ Control(s) Country Chart channel; or s per channel for a ‘‘communications channel b.3. ‘‘Network access controller’’ and their controller’’; or MT applies to entire entry MT Column 1 related common medium having a ‘‘digital Note: 5A991.c.8.a. does not control AT applies to entire entry AT Column 1 transfer rate’’ exceeding 33 Mbit/s. multiplex composite links composed only of License Exceptions b.4. Being ‘‘stored program controlled’’ digital cross connect equipment with ‘‘digital communication channels not individually LVS: N/A transfer rate’’ exceeding 8.5 Mbit/s per port. controlled by 5A001.b.1. GBS: N/A b.5. Radio equipment operating at input or c.8.b. A ‘‘digital transfer rate’’ of 33 Mbit/ CIV: N/A output frequencies exceeding: s for a ‘‘network cess controller’’ and related List of Items Controlled b.5.1. 31 GHz for satellite-earth station common media; Unit: Number applications; or d. Centralized network control having all Related Controls: N/A b.5.2. 26.5 GHz for other applications; of the following characteristics: Related Definitions: N/A Note: 5A991.b.5. does not control d.1. Receives data from the nodes; and Items: The list of items controlled is equipment for civil use when conforming d.2. Process these data in order to provide contained in the ECCN heading. with an International Telecommunications control of traffic not requiring operator Union (ITU) allocated band between 26.5 decisions, and thereby performing ‘‘dynamic 5A980 Communications intercepting GHz and 31 GHz. adaptive routing’’; devices; and parts and accessories Note: 5A991.d. does not preclude control therefor. b.6. Providing functions of digital ‘‘signal processing’’ as follows: of traffic as a function of predictable License Requirements b.6.a. Voice coding at rates less than 2,400 statistical traffic conditions. Reason for Control: Controls on equipment bit/s; e. Phased array antennae, operating above described in this entry are maintained in b.6.b. Employing circuitry that 10.5 GHz, containing active elements and accordance with the Omnibus Crime Control incorporates ‘‘user-accessible distributed components, and designed to and Safe Streets Act of 1968 (Public Law 90– programmability’’ of digital ‘‘signal permit electronic control of beam shaping 351). A license is required for ALL processing’’ circuits exceeding the limits of and pointing, except for landing systems destinations, regardless of end-use. 4A003.b. with instruments meeting International Civil

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Aviation Organization (ICAO) standards Control(s) Country Chart 5D101 ``Software'' designed or modified (microwave landing systems (MLS)). for the ``development'', ``production'' or f. Mobile communications equipment, AT applies to entire entry AT Column 1 ``use of items controlled by 5A101. n.e.s., and assemblies and components License Requirements therefor; or License Exceptions g. Radio relay communications equipment LVS: $3000 Reason for Control: MT, AT designed for use at frequencies equal to or GBS: Yes exceeding 19.7 GHz and assemblies and CIV: Yes Control(s) Country Chart components therefor, n.e.s. List of Items Controlled MT applies to entire entry MT Column 1 B. Test, Inspection and Production Unit: $ value AT applies to entire entry AT Column 1 Equipment Related Controls: N/A License Exceptions 5B001 Equipment and specially designed Related Definitions: N/A Items: The list of items controlled is CIV: N/A components or accessories therefor, TSR: N/A specially designed for the ``development'', contained in the ECCN heading. List of Items Controlled ``production'' or ``use'' of equipment, D. Software materials, functions or features controlled Unit: $ value by 5A001, 5B001, 5C001, 5D001 or 5E001. 5D001 ``Software'', as described in the List Related Controls: N/A of Items Controlled. Related Definitions: N/A License Requirements Items: The list of items controlled is Reason for Control: NS, AT License Requirements contained in the ECCN heading. Reason for Control: NS, AT Control(s) Country Chart 5D991 ``Software'' specially designed or Control(s) Country Chart modified for the ``development'', NS applies to entire entry NS Column 2 ``production'', or ``use'' of equipment AT applies to entire entry AT Column 1 NS applies to entire entry NS Column 1 controlled by 5A991 and 5B991. License Requirement Notes: See § 743.1 of AT applies to entire entry AT Column 1 License Requirements the EAR for reporting requirements for License Requirement Notes: See § 743.1 of Reason for Control: AT exports under License Exceptions. the EAR for reporting requirements for License Exceptions exports under License Exceptions. Control(s) Country Chart LVS: $5000 License Exceptions AT applies to entire entry AT Column 1 GBS: Yes CIV: Yes, except for ‘‘software’’ controlled by CIV: Yes 5D001.b or .c, when specially designed or License Exceptions List of Items Controlled modified for equipment, functions or CIV: N/A Unit: Equipment in number; parts and features controlled by 5A001.b.9 TSR: N/A accessories in $ value TSR: Yes, except for exports and reexports to List of Items Controlled Related Controls: See also 5B991. This entry destinations outside of Austria, Belgium, Unit: $ value does not control optical fibers and ‘‘optical Canada, Denmark, Finland, France, Related Controls: N/A fiber preform’’ characterization equipment Germany, Greece, Ireland, Italy, Related Definitions: N/A not using semiconductor ‘‘lasers’’. Luxembourg, the Netherlands, Portugal, Items: The list of items controlled is Related Definition: N/A Spain, Sweden, or the United Kingdom of contained in the ECCN heading. Items: The List of Items Controlled is ‘‘software’’ controlled by 5D001.a and E. Technology contained in the ECCN heading. specially designed for items controlled by 5A001.b.9 5B991 Telecommunications test 5E001 ``Technology'', (see List of Items equipment, n.e.s. List of Items Controlled Controlled). Unit: $ value License Requirements License Requirements Related Controls: See also 5D991 Reason for Control: NS, AT Reason for Control: AT Related Definitions: N/A Items: a. ‘‘Software’’ specially designed or Control(s) Country Chart Control(s) Country Chart modified for the ‘‘development’’, ‘‘production’’ or ‘‘use’’ of equipment, AT applies to entire entry AT Column 1 NS applies to entire entry NS Column 1 functions or features controlled by 5A001, AT applies to entire entry AT Column 1 License Exceptions 5B001 or 5C001. License Requirement Notes: See § 743.1 of b. ‘‘Software’’ specially designed or LVS: $1,000 for Syria; N/A to Iran the EAR for reporting requirements for modified to support ‘‘technology’’ controlled GBS: N/A exports under License Exceptions. CIV: N/A by 5E001. License Exceptions List of Items Controlled c. Specific ‘‘software’’ as follows: c.1. ‘‘Software’’, other than in machine- CIV: N/A Unit: $ value executable form, specially designed or TSR: Yes, except for exports or reexports to Related Controls: N/A destinations outside of Austria, Belgium, Related Definitions: N/A modified for the ‘‘use’’ of digital cellular radio equipment or systems; Canada, Denmark, Finland, France, Items: The list of items controlled is Germany, Greece, Ireland, Italy, contained in the ECCN heading. c.2. ‘‘Software’’ specially designed or modified to provide characteristics, functions Luxembourg, the Netherlands, Portugal, C. Materials or features of equipment controlled by 5A001 Spain, Sweden, or the United Kingdom of or 5B001; ‘‘technology’’ controlled by 5E001.a for the 5C001 Preforms of glass or of any other c.3. ‘‘Software’’ which provides the ‘‘development’’ or ‘‘production’’ of items material optimized for the manufacture of capability of recovering ‘‘source code’’ of controlled by 5A001.b.9 or 5D001.a. optical fibers controlled by 5A001.d. telecommunications ‘‘software’’ controlled by List of Items Controlled License Requirements 5A001, 5B001, or 5C001; Unit: $ value Reason for Control: NS, AT c.4. ‘‘Software’’, other than in machine- Related Controls: See also 5E101 and 5E991 executable form, specially designed for Related Definitions: N/A Control(s) Country Chart ‘‘dynamic adaptive routing’’. Items: a. ‘‘Technology’’ according to the N.B.: For ‘‘software’’ for ‘‘signal General Technology Note for the NS applies to entire entry NS Column 2 processing’’ see also 4D and 6D. ‘‘development’’, ‘‘production’’ or ‘‘use’’

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(excluding operation) of equipment, CIV: N/A Related Controls: See also 5A992. This entry functions or features, materials or ‘‘software’’ TSR: N/A does not control: (a) ‘‘Personalized smart controlled by 5A001, 5B001, 5C001 or 5D001. List of Items Controlled cards’’ or specially designed components b. Specific ‘‘technologies’’, as follows: therefor, with any of the following Unit: N/A b.1. ‘‘Required’’ ‘‘technology’’ for the characteristics: (1) Not capable of message Related Controls: N/A ‘‘development’’ or ‘‘production’’ of traffic encryption or encryption of user- telecommunications equipment specially Related Definitions: N/A supplied data or related key management designed to be used on board satellites; Items: The list of items controlled is functions therefor; or (2) When restricted b.2. ‘‘Technology’’ for the ‘‘development’’ contained in the ECCN heading. for use in equipment or systems excluded from control under the note to 5A002.c, or or ‘‘use’’ of ‘‘laser’’ communication 5E991 ``Technology'' for the under paragraphs b through h of this note. techniques with the capability of ``development'', ``production'' or ``use'' of (b) Equipment containing ‘‘fixed’’ data automatically acquiring and tracking signals equipment controlled by 5A991 or 5B991, or compression or coding techniques; (c) and maintaining communications through ``software'' controlled by 5D991. exoatmosphere or sub-surface (water) media; Receiving equipment for radio broadcast, b.3. ‘‘Technology’’ for the processing and License Requirements pay television or similar restricted application of coatings to optical fiber Reason for Control: AT audience television of the consumer type, specially designed to make it suitable for without digital encryption and where underwater use; Control(s) Country Chart digital decryption is limited to the video, b.4. ‘‘Technology’’ for the ‘‘development’’ audio or management functions; (d) of equipment employing ‘‘Synchronous AT applies to entire entry AT Column 1 Portable or mobile radiotelephones for civil Digital Hierarchy’’ (‘‘SDH’’) or ‘‘Synchronous use (e.g., for use with commercial civil License Exceptions Optical Network’’ (‘‘SONET’’) techniques; cellular radiocommunications systems) b.5. ‘‘Technology’’ for the ‘‘development’’ CIV: N/A that are not capable of end-to-end of ‘‘switch fabric’’ exceeding 64,000 bit/s per TSR: N/A encryption; (e) Decryption functions information channel other than for digital List of Items Controlled specially designed to allow the execution of copy-protected ‘‘software’’, provided the cross connect integrated in the switch; Unit: $ value b.6. ‘‘Technology’’ for the ‘‘development’’ decryption functions are not user- Related Controls: N/A accessible; (f) Access control equipment, of centralized network control or ‘‘dynamic Related Definitions: N/A adaptive routing’’; such as automatic teller machines, self- Items: The list of items controlled is service statement printers or point of sale b.7. ‘‘Technology’’ for the ‘‘development’’ contained in the ECCN heading. of digital cellular radio systems; terminals, that protects password or b.8. ‘‘Technology’’ for the ‘‘development’’ EAR99 Items subject to the EAR that are personal identification numbers (PIN) or of broadband ‘‘Integrated Services Digital not elsewhere specified in this CCL similar data to prevent unauthorized access Network’’ (‘‘ISDN’’); Category or in any other category in the to facilities but does not allow for encryption of files or text, except as b.9. ‘‘Technology’’ for the ‘‘development’’ CCL are designated by the number EAR99. directly related to the password or PIN of QAM techniques, for radio equipment, protection; (g) Data authentication above level 4; Part 2—‘‘Information Security’’ equipment that calculates a Message b.10. ‘‘Technology’’ for the ‘‘development’’ Note: The control status of ‘‘information Authentication Code (MAC) or similar of ‘‘spread spectrum’’ or ‘‘frequency agility’’ security’’ equipment, ‘‘software’’, systems, result to ensure no alteration of text has application specific ‘‘electronic assemblies’’, (frequency hopping) techniques. taken place, or to authenticate users, but modules, integrated circuits, components, or does not allow for encryption of data, text 5E101 ``Technology'' according to the functions is determined in Category 5, Part 2 General Technology Note for the or other media other than that needed for even if they are components or ‘‘electronic the authentication; (h) Cryptographic ``development'', ``production'' or ``use'' of assemblies’’ of other equipment. equipment controlled by 5A101. equipment specially designed and limited A. Systems, Equipment and Components for use in machines for banking or money License Requirements transactions, such as automatic teller Reason for Control: MT, AT 5A002 Systems, equipment, application machines, self-service statement printers or specific ``assemblies'', modules or point of sale terminals. Control(s) Country Chart integrated circuits for ``information Related Definitions: For the control of global security'', and specially designed navigation satellite systems receiving MT applies to entire entry MT Column 1 components therefor. equipment containing or employing decryption (i.e., GPS or GLONASS see AT applies to entire entry AT Column 1 License Requirements 7A005) License Exceptions Reason for Control: NS, AT, EI Items: a. Systems, equipment, application CIV: N/A specific ‘‘assemblies’’, modules or TSR: N/A Control(s) Country Chart integrated circuits for ‘‘information List of Items Controlled security’’, and specially designed NS applies to entire entry NS Column 1 components therefor: Unit: $ value AT applies to entire entry AT Column 1 Related Controls: N/A a.1. Designed or modified to use Related Definitions: N/A EI applies to encryption items transferred ‘‘cryptography’’ employing digital techniques Items: The list of items controlled is from the U.S. Munitions List to the to ensure ‘‘information security’’; contained in the ECCN heading. Commerce Control List consistent with E.O. a.2. Designed or modified to perform 13026 of November 15, 1996 (61 FR 58767) cryptoanalytic functions; 5E111 ``Technology'' according to the and pursuant to the Presidential a.3. Designed or modified to use General Technology Note for the Memorandum of that date. Refer to § 742.15 ‘‘cryptography’’ employing analog techniques ``development'', ``production'', or ``use'' of of the EAR. to ensure ‘‘information security’’; ``software'' controlled by 5D101. License Requirement Notes: See § 743.1 of Note: 5A002.a.3 does not control the following: License Requirements the EAR for reporting requirements for 1. Equipment using ‘‘fixed’’ band Reason for Control: MT, AT exports under License Exceptions. License Exceptions scrambling not exceeding 8 bands and in which the transpositions change not more LVS: N/A Control(s) Country Chart frequently than once every second; GBS: N/A 2. Equipment using ‘‘fixed’’ band MT applies to entire entry MT Column 1 CIV: N/A scrambling exceeding 8 bands and in which AT applies to entire entry AT Column 1 List of Items Controlled the transpositions change not more License Exceptions Unit: $ value frequently than once every ten seconds;

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3. Equipment using ‘‘fixed’’ frequency Items: a. Equipment specially designed for: Items: a. ‘‘Software’’ specially designed or inversion and in which the transpositions a.1. The ‘‘development’’ of equipment or modified for the ‘‘development’’, change not more frequently than once every functions controlled by 5A002, 5B002, 5D002 ‘‘production’’ or ‘‘use’’ of equipment or second; or 5E002, including measuring or test ‘‘software’’ controlled by 5A002, 5B002 or 4. Facsimile equipment; equipment; 5D002. 5. Restricted audience broadcast a.2. The ‘‘production’’ of equipment or b. ‘‘Software’’ specially designed or equipment; and functions controlled by 5A002, 5B002, modified to support ‘‘technology’’ controlled 6. Civil television equipment; 5D002, or 5E002, including measuring, test, by 5E002. a.4. Designed or modified to suppress the repair or production equipment; c. Specific ‘‘software’’ as follows: compromising emanations of information- b. Measuring equipment specially designed c.1. ‘‘Software’’ having the characteristics, bearing signals; to evaluate and validate the ‘‘information or performing or simulating the functions of Note: 5A002.a.4 does not control security’’ functions controlled by 5A002 or the equipment controlled by 5A002 or 5B002; equipment specially designed to suppress 5D002. c.2. ‘‘Software’’ to certify ‘‘software’’ emanations for reasons of health and safety. controlled by 5D002.c.1. C. Materials [Reserved] a.5. Designed or modified to use 5D992 ``Software'' not controlled by cryptographic techniques to generate the D. Software 5D002. spreading code for ‘‘spread spectrum’’ or the License Requirements hopping code for ‘‘frequency agility’’ 5D002 Information SecurityÐ``Software''. systems; License Requirements Reason for Control: AT a.6. Designed or modified to provide Reason for Control: NS, AT, EI certified or certifiable ‘‘multilevel security’’ Control(s) Country Chart or user isolation at a level exceeding Class B2 Control(s) Country Chart of the Trusted Computer System Evaluation AT applies to 5D992.a and AT Column 1 Criteria (TCSEC) or equivalent; .b. NS applies to entire entry NS Column 1 AT applies to 5D992.c ...... AT Column 2 a.7. Communications cable systems AT applies to entire entry AT Column 1 designed or modified using mechanical, License Exceptions electrical or electronic means to detect EI applies to encryption items transferred CIV: N/A surreptitious intrusion. from the U.S. Munitions List to the TSR: N/A Commerce Control List consistent with E.O. 5A992 ``Information security'' equipment, 13026 of November 15, 1996 (61 FR 58767) List of Items Controlled n.e.s.; (e.g., cryptographic, cryptoanalytic, and pursuant to the Presidential Unit: $ value and cryptologic equipment, n.e.s.), and Memorandum of that date. Refer to § 742.15 Related Controls: N/A components therefor. of the EAR. Related Definitions: N/A Items: a. ‘‘Software’’, specially designed or License Requirements Note: Encryption software is controlled modified for the ‘‘development’’, Reason for Control: AT because of its functional capacity, and not ‘‘production’’, or ‘‘use’’ of information because of any informational value of such security or cryptologic equipment (e.g., Control(s) Country Chart software; such software is not accorded the equipment controlled by 5A992) same treatment under the EAR as other b. ‘‘Software’’ having the characteristics, or AT applies to entire entry AT Column 1 ‘‘software’’; and for the export licensing performing or simulating the functions of the purposes encryption software is treated License Exceptions equipment controlled by 5A992. under the EAR in the same manner as a c. ‘‘Software’’ designed or modified to LVS: N/A commodity included in ECCN 5A002. protect against malicious computer damage, GBS: N/A License Exceptions for commodities are not e.g., viruses. CIV: N/A applicable. E. Technology List of Items Controlled Note: Encryption software controlled for EI Unit: $ value reasons under this entry remains subject to 5E002 ``Technology'' according to the Related Controls: N/A the EAR even when made publicly available General Technology Note for the Related Definitions: N/A in accordance with part 734 of the EAR, and ``development'', ``production'' or ``use'' of Items: The list of items controlled is it is not eligible for the General Software equipment controlled by 5A002 or 5B002 or contained in the ECCN heading. Note (‘‘mass market’’ treatment under ``software'' controlled by 5D002. License Exception TSU for mass market B. Test, Inspection and Production software). After a one-time BXA review, License Requirements Equipment certain encryption software may be released Reason for Control: NS, AT, EI 5B002 Information SecurityÐtest, from EI controls and made eligible for the inspection and ``production'' equipment. General Software Note treatment as well as Control(s) Country Chart other provisions of the EAR applicable to License Requirements software. Refer to § 742.15(b)(1) of the EAR NS applies to entire entry NS Column 1 Reason for Control: NS, AT and Supplement No. 6 to part 742 of the AT applies to entire entry AT Column 1 EAR. EI applies to encryption items transferred Control(s) Country Chart License Requirement Notes: See § 743.1 of from the U.S. Munitions List to the the EAR for reporting requirements for Commerce Control List consistent with E.O. NS applies to entire entry NS Column 1 exports under License Exceptions. 13026 of November 15, 1996 (61 FR 58767) AT applies to entire entry AT Column 1 License Exceptions and pursuant to the Presidential License Requirement Notes: See § 743.1 of Memorandum of that date. CIV: N/A the EAR for reporting requirements for TSR: N/A Refer to § 742.15 of the EAR exports under License Exceptions. List of Items Controlled License Requirement Notes: See § 743.1 of License Exceptions the EAR for reporting requirements for Unit: $ value LVS: N/A exports under License Exceptions Related Controls: See also 5D992. This entry GBS: N/A License Exceptions does not control ‘‘software’’ ‘‘required’’ for CIV: N/A the ‘‘use’’ of equipment excluded from CIV: N/A List of Items Controlled control under 5A002 or ‘‘software’’ providing TSR: N/A Unit: $ value any of the functions of equipment excluded List of Items Controlled Related Controls: N/A from control under 5A002 Unit: N/A Related Definitions: N/A Related Definitions: N/A Related Controls: See also 5E992

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Related Definitions: N/A b. Acoustic beacons, as follows: a.1.c.3. Designed to withstand pressure Items: The list of items controlled is 1. Acoustic emergency beacons; during normal operation at depths exceeding contained in the ECCN heading. 2. Pingers specially designed for relocating 1,000 m; or or returning to an underwater position. a.1.c.4. Side-lobe suppression exceeding 22 5E992 ``Technology'', n.e.s., for the a.1.a. Wide-swath bathymetric survey Db; ``development'', ``production'', or ``use'' of systems designed for sea bed topographic a.1.d. Acoustic systems, equipment and ``information security'' or cryptologic mapping, having all of the following: specially designed components for equipment (e.g., equipment controlled by a.1.a.1. Being designed to take determining the position of surface vessels or 5A992), or ``software'' controlled by 5D992. measurements at an angle exceeding 20° from underwater vehicles having any of the License Requirements the vertical; following: Reason for Control: AT a.1.a.2. Being designed to measure depths Note: 6A001.a.1.d includes: exceeding 600 m below the water surface; a. Equipment using coherent ‘‘signal Control(s) Country Chart and processing’’ between two or more beacons a.1.a.3. Being designed to provide any of and the hydrophone unit carried by the AT applies to entire entry AT Column 1 the following: surface vessel or underwater vehicle; License Exceptions a.1.a.3.a. Incorporation of multiple beams b. Equipment capable of automatically any of which is less than 1.9°; or correcting speed-of-sound propagation errors CIV: N/A a.1.a.3.b. Data accuracies of better than for calculation of a point. TSR: N/A 0.3% of water depth across the swath a.1.d.1. Designed to operate at a range List of Items Controlled averaged over the individual measurements exceeding 1,000 m with a positioning Unit: N/A within the swath; accuracy of less than 10 m rms (root mean Related Controls: N/A a.1.b. Object detection or location systems square) when measured at a range of 1,000 Related Definitions: N/A having any of the following: m; or Items: The list of items controlled is a.1.b.1. A transmitting frequency below 10 a.1.d.2. Designed to withstand pressure at contained in the ECCN heading. Khz; depths exceeding 1,000 m; a.1.b.2. Sound pressure level exceeding a.2. Passive (receiving, whether or not EAR99 Items subject to the EAR that are 224 Db (reference 1 µPa at 1 m) for related in normal application to separate not elsewhere specified in this CCL equipment with an operating frequency in active equipment) systems, equipment and Category or in any other category in the the band from 10 Khz to 24 Khz inclusive; specially designed components therefor, as CCL are designated by the number EAR99. a.1.b.3. Sound pressure level exceeding follows: Category 6—Sensors and Lasers 235 Db (reference 1 µPa at 1 m) for a.2.a. Hydrophones (transducers) having equipment with an operating frequency in any of the following characteristics: A. Systems, Equipment and Components the band between 24 Khz and 30 Khz; a.2.a.1. Incorporating continuous flexible a.1.b.4. Forming beams of less than 1° on sensors or assemblies of discrete sensor 6A001 Acoustics. any axis and having an operating frequency elements with either a diameter or length less License Requirements of less than 100 Khz; than 20 mm and with a separation between a.1.b.5. Designed to operate with an elements of less than 20 mm; Reason for Control: NS, AT unambiguous display range exceeding 5,120 a.2.a.2. Having any of the following sensing m; or elements: Control(s) Country Chart a.1.b.6. Designed to withstand pressure a.2.a.2.a. Optical fibers; during normal operation at depths exceeding a.2.a.2.b. Piezoelectric polymers; or NS applies to entire entry NS Column 2 a.2.a.2.c. Flexible piezoelectric ceramic AT applies to entire entry AT Column 1 1,000 m and having transducers with any of the following: materials; License Requirement Notes: See § 743.1 of a.1.b.6.a. Dynamic compensation for a.2.a.3. A hydrophone sensitivity better the EAR for reporting requirements for pressure; or than ¥180 Db at any depth with no exports under License Exceptions. a.1.b.6.b. Incorporating other than lead acceleration compensation; License Exceptions zirconate titanate as the transduction a.2.a.4. When designed to operate at depths not exceeding 35 m, a hydrophone sensitivity LVS: $3000; N/A for 6A001.a.2.a.1, a.2.a.2, element; ¥ a.2.a.7, a.2.b; processing equipment a.1.c. Acoustic projectors, including better than 186 Db with acceleration controlled by 6A002.a.2.c, and specially transducers, incorporating piezoelectric, compensation; designed for real time application with towed magnetostrictive, electrostrictive, a.2.a.5. When designed for normal acoustic hydrophone arrays; a.2.e.1, a.2.e.2; electrodynamic or hydraulic elements operation at depths exceeding 35 m, a and bottom or bay cable systems controlled operating individually or in a designed hydrophone sensitivity better than ¥192 Db by 6A002.a.2.e.3 and having processing combination, having any of the following: with acceleration compensation; a.2.a.6. When designed for normal equipment specially designed for real time Notes: 1. The control status of acoustic application with bottom or bay cable systems operation at depths exceeding 100 m, a projectors, including transducers, specially hydrophone sensitivity better than ¥204 Db; GBS: Yes for 6A001.a.1.b.4 designed for other equipment is determined CIV: Yes for 6A001.a.1.b.4 or by the control status of the other equipment. a.2.a.7. Designed for operation at depths List of Items Controlled 2. 6A001.a.1.c does not control electronic exceeding 1,000 m; sources that direct the sound vertically only, Unit: $ value Technical Note: Hydrophone sensitivity is Related Controls: See also 6A991 or mechanical (e.g., air gun or vapor-shock gun) or chemical (e.g., explosive) sources. defined as twenty times the logarithm to the Related Definitions: N/A base 10 of the ratio of rms output voltage to Items: a. Marine acoustic systems, equipment a.1.c.1. An instantaneous radiated acoustic a 1 V rms reference, when the hydrophone 2 and specially designed components therefor, power density exceeding 0.01 mW/mm /Hz sensor, without a pre-amplifier, is placed in as follows: a.1. Active (transmitting or for devices operating at frequencies below 10 a plane wave acoustic field with an rms transmitting-and-receiving) systems, Khz; pressure of 1 µPa. For example, a equipment and specially designed a.1.c.2. A continuously radiated acoustic hydrophone of ¥160 Db (reference 1 V per components therefor, as follows: 2 power density exceeding 0.001 Mw/mm /Hz µPa) would yield an output voltage of 10¥8 Note: 6A001.a.1 does not control: for devices operating at frequencies below 10 V in such a field, while one of ¥180 Db a. Depth sounders operating vertically Khz; sensitivity would yield only 10¥9 V output. below the apparatus, not including a Technical Note: Acoustic power density is Thus, ¥160 Db is better than ¥180 Db. scanning function exceeding ±20°, and obtained by dividing the output acoustic a.2.b. Towed acoustic hydrophone arrays limited to measuring the depth of water, the power by the product of the area of the having any of the following: distance of submerged or buried objects or radiating surface and the frequency of a.2.b.1. Hydrophone group spacing of less fish finding; operation. than 12.5 m;

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a.2.b.2. Hydrophone group spacing of 12.5 6A002 Optical sensors. wavelength range exceeding 1,200 nm but m to less than 25 m and designed or able to License Requirements not exceeding 30,000 nm; be modified to operate at depths exceeding a.2. Image intensifier tubes and specially Reason for Control: NS, MT, CC, RS, AT, UN 35 m; designed components therefor, as follows: a.2.a. Image intensifier tubes having all of Technical Note: ‘‘Able to be modified’’ in Control(s) Country Chart 6A001.a.2.b.2 means having provisions to the following: allow a change of the wiring or NS applies to entire entry NS Column 2 a.2.a.1. A peak response in the wavelength interconnections to alter hydrophone group MT applies to optical de- MT Column 1 range exceeding 400 nm but not exceeding spacing or operating depth limits. These tectors in 6A002.a.1, 1,050 nm; provisions are: spare wiring exceeding 10% a.3, and .e that are spe- a.2.a.2. A microchannel plate for electron of the number of wires, hydrophone group cially designed or rated image amplification with a hole pitch µ spacing adjustment blocks or internal depth as electomagnetic (in- (center-to-center spacing) of 15 m or less; limiting devices that are adjustable or that cluding ‘‘lasers’’) and and control more than one hydrophone group. ionized particle radi- a.2.a.3. Photocathodes, as follows: a.2.b.3. Hydrophone group spacing of 25 m ation resistant. a.2.a.3.a. S–20, S–25 or multialkali RS applies to 6A002.a.1, RS Column 1 photocathodes with a luminous sensitivity or more and designed to operate at depths µ exceeding 100 m; a.2, a.3 and .c. exceeding 240 A/lm; a.2.b.4. Heading sensors controlled by CC applies to police- CC Column 1 a.2.a.3.b. GaAs or GaInAs photocathodes; 6A001.a.2.d; model infrared viewers or a.2.b.5. Longitudinally reinforced array in 6A002.c. a.2.a.3.c. Other III–V compound hoses; AT applies to entire entry AT Column 1 semiconductor photocathodes; a.2.b.6. An assembled array of less than 40 UN applies to 6A002.a.1, Rwanda Note: 6A002.a.2.a.3.c does not control mm in diameter; a.2, a.3 and c. compound semiconductor photocathodes a.2.b.7. Multiplexed hydrophone group License Requirement Notes: See § 743.1 of with a maximum radiant sensitivity of 10 signals designed to operate at depths the EAR for reporting requirements for mA/W or less. exceeding 35 m or having an adjustable or exports under License Exceptions. a.2.b. Specially designed components, as removable depth sensing device in order to License Exceptions follows: operate at depths exceeding 35 m; or a.2.b.1. Microchannel plates having a hole LVS: $3000, except N/A for MT and for a.2.b.8. Hydrophone characteristics pitch (center-to-center spacing) of 15 µm or 6A002.a.1, a.2, a.3, .c, and .e less; controlled by 6A001.a.2.a; GBS: N/A a.2.b.2. GaAs or GaInAs photocathodes; a.2.c. Processing equipment, specially CIV: N/A designed for towed acoustic hydrophone a.2.b.3. Other III–V compound arrays, having ‘‘user accessible List of Items Controlled semiconductor photocathodes; programmability’’ and time or frequency Unit: Parts and accessories in $ value Note: 6A002.a.2.b.3 does not control domain processing and correlation, including Related Controls: See also 6A102, 6A202, and compound semiconductor photocathodes spectral analysis, digital filtering and 6A992 with a maximum radiant sensitivity of 10 beamforming using Fast Fourier or other Related Definitions: (1) ‘‘Image intensifiers’’ mA/W or less. transforms or processes; defined in 6A002.a.2 and ‘‘focal plane arrays’’ defined in 6A002.a.3 specially a.3. Non-’’space-qualified’’ ‘‘focal plane a.2.d. Heading sensors having all of the arrays’’, as follows: following: designed, modified, or configured for a.2.d.1. An accuracy of better than ±0.5°; military use and not part of civil equipment Technical Note: Linear or two-dimensional and are subject to the export licensing authority multi-element detector arrays are referred to a.2.d.2. Any of the following: of U.S. Department of State, Office of Defense as ‘‘focal plane arrays’’. a.2.d.2.a. Designed to be incorporated Trade Controls (22 CFR part 121). (2) ‘‘Space Notes: 1. 6A002.a.3 includes within the array hosing and to operate at qualified’’ ‘‘monospectral imaging sensors’’, photoconductive arrays and photovoltaic depths exceeding 35 m or having an and ‘‘multispectral imaging sensors’’ defined arrays. adjustable or removable depth sensing device in 6A002.b, and ‘‘space-qualified’’ ‘‘focal 2. 6A002.a.3 does not control silicon ‘‘focal in order to operate at depths exceeding 35 m; plane arrays’’ defined in 6A002.e, specially plane arrays’’, multi-element (not to exceed or designed or modified for items on the U.S. 16 elements) encapsulated photoconductive a.2.d.2.b. Designed to be mounted external Munitions List are subject to the export cells or pyroelectric detectors using any of to the array hosing and having a sensor unit licensing authority of the Department of the following: capable of operating with 360° roll at depths State, Office of Defense Trade Controls (22 a. Lead sulphide; exceeding 35 m; CFR part 121) b. Triglycine sulphate and variants; a.2.e. Bottom or bay cable systems having Items: a. Optical detectors, as follows: c. Lead-lanthanum-zirconium titanate and any of the following: Note: 6A002.a does not control germanium variants; a.2.e.1. Incorporating hydrophones or silicon photodevices. d. Lithium tantalate; controlled by 6A001.a.2.a; a.1. ‘‘Space-qualified’’ solid-state detectors, e. Polyvinylidene fluoride and variants; a.2.e.2. Incorporating multiplexed as follows: f. Strontium barium niobate and variants; hydrophone group signals designed to a.1.a. ‘‘Space-qualified’’ solid-state or operate at depths exceeding 35 m or having detectors, having all of the following: g. Lead selenide. an adjustable or removable depth sensing a.1.a.1. A peak response in the wavelength a.3.a. Non-‘‘space-qualified’’ ‘‘focal plane device in order to operate at depths range exceeding 10 nm but not exceeding 300 arrays’’, having all of the following: exceeding 35 m; or nm; and a.3.a.1. Individual elements with a peak a.2.e.3. Processing equipment, specially a.1.a.2. A response of less than 0.1% response within the wavelength range designed for bottom or bay cable systems, relative to the peak response at a wavelength exceeding 900 nm but not exceeding 1,050 having ‘‘user accessible programmability’’ exceeding 400 nm; nm; and and time or frequency domain processing a.1.b. ‘‘Space-qualified’’ solid-state a.3.a.2. A response ‘‘time constant’’ of less and correlation, including spectral analysis, detectors, having all of the following: than 0.5 ns; digital filtering and beamforming using Fast a.1.b.1. A peak response in the wavelength a.3.b. Non-‘‘space-qualified’’ ‘‘focal plane Fourier or other transforms or processes; range exceeding 900 nm but not exceeding arrays’’, having all of the following: b. Correlation-velocity sonar log equipment 1,200 nm; and a.3.b.1. Individual elements with a peak designed to measure the horizontal speed of a.1.b.2. A response ‘‘time constant’’ of 95 response in the wavelength range exceeding the equipment carrier relative to the sea bed ns or less; 1,050 nm but not exceeding 1,200 nm; and at distances between the carrier and the sea a.1.c. ‘‘Space-qualified’’ solid-state a.3.b.2. A response ‘‘time constant’’ of 95 bed exceeding 500 m. detectors having a peak response in the ns or less;

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a.3.c. Non-‘‘space-qualified’’ ‘‘focal plane 6A003 Cameras. b.2.a. Linear detector arrays with more arrays’’, having individual elements with a License Requirements than 8,192 elements per array; and peak response in the wavelength range Reason for Control: NS, NP, RS, AT, UN b.2.b. Mechanical scanning in one exceeding 1,200 nm but not exceeding 30,000 direction; nm. Control(s) Country Chart b.3. Imaging cameras incorporating image b. ‘‘Monospectral imaging sensors’’ and intensifiers having the characteristics listed ‘‘multispectral imaging sensors’’ designed for NS applies to entire entry NS Column 2 in 6A002.a.2.a; remote sensing applications, having any of NP applies to items con- NP Column 1 b.4. Imaging cameras incorporating ‘‘focal the following: trolled in paragraphs plane arrays’’ having the characteristics listed b.1. An Instantaneous-Field-Of-View 6A003.a.2, a.3 and a.4. in 6A002.a.3. (IFOV) of less than 200 µr (microradians); or RS applies to items con- RS Column 1 6A004 Optics. b.2. Being specified for operation in the trolled in 6A003.b.3 and wavelength range exceeding 400 nm but not b.4. License Requirements exceeding 30,000 nm and having all the AT applies to entire entry AT Column 1 Reason for Control: NS, AT following; UN applies to items con- Rwanda b.2.a. Providing output imaging data in trolled in 6A003.b.3 and Control(s) Country Chart digital format; and b.4. b.2.b. Being any of the following: License Exceptions NS applies to entire entry NS Column 2 b.2.b.1. ‘‘Space-qualified’’; or AT applies to entire entry AT Column 1 b.2.b.2. Designed for airborne operation, LVS: $1500, except N/A for 6A003.a.2 License Requirement Notes: See § 743.1 of using other than silicon detectors, and having through a.5, b.1, b.3 and b.4 GBS: Yes for 6A003.a.1 the EAR for reporting requirements for an IFOV of less than 2.5 mr (milliradians). exports under License Exceptions. c. Direct view imaging equipment CIV: Yes for 6A003.a.1 operating in the visible or infrared spectrum, List of Items Controlled License Exceptions incorporating any of the following: Unit: Number LVS: $3000 c.1. Image intensifier tubes having the Related Controls: See also 6A203. See GBS: Yes for 6A004.a.1, a.2, a.4, b, d.2, and characteristics listed in 6A002.a.2.a; or 8A002.d and .e for cameras specially d.4 c.2. ‘‘Focal plane arrays’’ having the designed or modified for underwater use. CIV: Yes for 6A004.a.1, a.2, a.4, b, d.2, and characteristics listed in 6A002.a.3. Related Definitions: N/A d.4 Technical Note: ‘‘Direct view’’ refers to Items: a. Instrumentation cameras, as follows: List of Items Controlled imaging equipment, operating in the visible a.1. High-speed cinema recording cameras Unit: Equipment in number; cable in meters/ or infrared spectrum, that presents a visual using any film format from 8 mm to 16 mm feet; components in $ value image to a human observer without inclusive, in which the film is continuously Related Controls: See also 6A994 converting the image into an electronic signal advanced throughout the recording period, Related Definitions: N/A for television display, and that cannot record and that are capable of recording at framing Items: a. Optical mirrors (reflectors), as or store the image photographically, rates exceeding 13,150 frames/s; follows: electronically or by any other means. Note: 6A003.a.1 does not control cinema a.1. ‘‘Deformable mirrors’’ having either Note: 6A002.c does not control the recording cameras for normal civil purposes. continuous or multi-element surfaces, and following equipment incorporating other a.2. Mechanical high speed cameras, in specially designed components therefor, than GaAs or GaInAs photocathodes: which the film does not move, capable of capable of dynamically repositioning recording at rates exceeding 1,000,000 portions of the surface of the mirror at rates a. Industrial or civilian intrusion alarm, exceeding 100 Hz; traffic or industrial movement control or frames/s for the full framing height of 35 mm film, or at proportionately higher rates for a.2. Lightweight monolithic mirrors having counting systems; an average ‘‘equivalent density’’ of less than b. Medical equipment; lesser frame heights, or at proportionately 2 lower rates for greater frame heights; 30 kg/m and a total mass exceeding 10 kg; c. Industrial equipment used for a.3. Lightweight ‘‘composite’’ or foam a.3. Mechanical or electronic streak inspection, sorting or analysis of the mirror structures having an average cameras having writing speeds exceeding 10 properties of materials; ‘‘equivalent density’’ of less than 30 kg/m2 mm/µs; d. Flame detectors for industrial furnaces; and a total mass exceeding 2 kg; a.4. Electronic framing cameras having a e. Equipment specially designed for a.4. Beam steering mirrors more than 100 speed exceeding 1,000,000 frames/s; laboratory use. mm in diameter or length of major axis, that a.5. Electronic cameras, having all of the d. Special support components for optical maintain a flatness of lambda/2 or better following: sensors, as follows: (lambda is equal to 633 nm) having a control a.5.a. An electronic shutter speed (gating d.1. ‘‘Space-qualified’’ cryocoolers; bandwidth exceeding 100 Hz. capability) of less than 1 µs per full frame; d.2. Non-’’space-qualified’’ cryocoolers, b. Optical components made from zinc and having a cooling source temperature below selenide (ZnSe) or zinc sulphide (ZnS) with 218 K (¥55° C), as follows: a.5.b. A read out time allowing a framing transmission in the wavelength range d.2.a. Closed cycle type with a specified rate of more than 125 full frames per second. exceeding 3,000 nm but not exceeding 25,000 Mean-Time-To-Failure (MTTF), or Mean- b. Imaging cameras, as follows: nm and having any of the following: Time-Between-Failures (MTBF), exceeding Note: 6A003.b does not control television b.1. Exceeding 100 cm3 in volume; or 2,500 hours; or video cameras specially designed for b.2. Exceeding 80 mm in diameter or d.2.b. Joule-Thomson (JT) self-regulating television broadcasting. length of major axis and 20 mm in thickness minicoolers having bore (outside) diameters b.1. Video cameras incorporating solid (depth). of less than 8 mm; state sensors, having any of the following: c. ‘‘Space-qualified’’ components for d.3. Optical sensing fibers specially b.1.a. More than 4 × 106 ‘‘active pixels’’ per optical systems, as follows: fabricated either compositionally or solid state array for monochrome (black and c.1. Lightweighted to less than 20% structurally, or modified by coating, to be white) cameras; ‘‘equivalent density’’ compared with a solid acoustically, thermally, inertially, b.1.b. More than 4 × 106 ‘‘active pixels’’ per blank of the same aperture and thickness; electromagnetically or nuclear radiation solid state array for color cameras c.2. Substrates, substrates having surface sensitive. incorporating three solid state arrays; or coatings (single-layer or multi-layer, metallic e. ‘‘Space qualified’’ ‘‘focal plane arrays’’ b.1.c. More than 12 × 106 ‘‘active pixels’’ or dielectric, conducting, semiconducting or having more than 2,048 elements per array for solid state array color cameras insulating) or having protective films; and having a peak response in the incorporating one solid state array; c.3. Segments or assemblies of mirrors wavelength range exceeding 300 nm but not b.2. Scanning cameras and scanning designed to be assembled in space into an exceeding 900 nm. camera systems, having all of the following: optical system with a collecting aperture

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Specially designed to maintain the exceeding 1,100 nm; and an average or CW a.1.c.1. An output energy exceeding 10 J surface figure or orientation of the ‘‘space- output power not exceeding 2 Kw; and per pulse; or qualified’’ components controlled by operate in a pulse-excited, non-’’Q- a.1.c.2. An average or CW output power 6A004.c.1 or 6A004.c.3; switched’’ multiple-transverse mode; or in exceeding 500 W; or d.2. Having steering, tracking, stabilization a continuously excited, multiple-transverse a.1.d. An output wavelength exceeding 360 or resonator alignment bandwidths equal to mode; and 6A005.g.1. nm and having any of the following: or more than 100 Hz and an accuracy of 10 CIV: Yes, for 6A005..d (except d.2.c), CO2 or a.1.d.1. An output energy exceeding 1.5 J µr (microradians) or less; CO/CO2 ‘‘lasers’’ having an output per pulse; or d.3. Gimbals having all of the following: wavelength in the range from 9,000 to a.1.d.2. An average or CW output power d.3.a. A maximum slew exceeding 5°; 11,000 nm and having a pulsed output not exceeding 30 W; d.3.b. A bandwidth of 100 Hz or more; exceeding 2 J per pulse and a maximum a.2. Metal vapor ‘‘lasers’’, as follows: d.3.c. Angular pointing errors of 200 µr rated average single or multimode output a.2.a. Copper (Cu) ‘‘lasers’’ having an (microradians) or less; and power not exceeding 5 Kw; CO ‘‘lasers’’ average or CW output power exceeding 20 W; d.3.d. Having any of the following: having a CW maximum rated single or a.2.b. Gold (Au) ‘‘lasers’’ having an average d.3.d.1. Exceeding 0.15 m but not multimode output power not exceeding 10 or CW output power exceeding 5 W; exceeding 1 m in diameter or major axis Kw; CO2 ‘‘lasers’’ controlled by 6A005.a.4 a.2.c. Sodium (Na) ‘‘lasers’’ having an length and capable of angular accelerations that operate in CW multiple-transverse output power exceeding 5 W; exceeding 2 r (radians)/s2; or mode; and having a CW output power not a.2.d. Barium (Ba) ‘‘lasers’’ having an d.3.d.2. Exceeding 1 m in diameter or exceeding 15 Kw; Neodymium-doped average or CW output power exceeding 2 W; major axis length and capable of angular (other than glass), pulse-excited, ‘‘Q- a.3. Carbon monoxide (CO) ‘‘lasers’’ having accelerations exceeding 0.5 r (radians)/s2; switched lasers’’ controlled by any of the following: d.4. Specially designed to maintain the 6A005.c.2.b.2.b having a pulse duration a.3.a. An output energy exceeding 2 J per alignment of phased array or phased segment equal to or more than 1 ns; and a multiple- pulse and a pulsed ‘‘peak power’’ exceeding mirror systems consisting of mirrors with a transverse mode output with a ‘‘peak 5 Kw; or segment diameter or major axis length of 1 power’’ not exceeding 400 MW; a.3.b. An average or CW output power m or more. Neodymium-doped (other than glass) exceeding 5 Kw; ‘‘lasers’’ controlled by 6A005.c.2.b.3.b or a.4. Carbon dioxide (CO2) ‘‘lasers’’ having 6A005 ``Lasers'', components and optical 6A005.c.2.b.4.b that have an output any of the following: equipment, as follows (see List of Items wavelength exceeding 1,000 nm, but not a.4.a. A CW output power exceeding 15 Controlled). exceeding 1,100 nm; and an average or CW Kw; a.4.b. A pulsed output having a ‘‘pulse License Requirements. output power not exceeding 2 Kw; and duration’’ exceeding 10 µs and having any of Reason for Control: NS, NP, AT operate in a pulse-excited, non-‘‘Q- switched’’ multiple-transverse mode; or in the following: a.4.b.1. An average output power Control(s) Country Chart a continuously excited, multiple-transverse mode; and 6A005.g.1. exceeding 10 Kw; or a.4.b.2. A pulsed ‘‘peak power’’ exceeding NS applies to entire entry NS Column 2 List of Items Controlled 100 Kw; or NP applies to 6A005.a.1.c, NP Column 1 Unit: Equipment in number; parts and a.4.c. A pulsed output having a ‘‘pulse a.2.a (with an output accessories in $ value duration’’ equal to or less than 10 µs; and power > 40W), a.4.c, Related Controls: See also 6A205, 6A995, having any of the following: a.6, (argon ion lasers 0B001.g.5 and 0B001.b.6. Shared aperture a.4.c.1. A pulse energy exceeding 5 J per only), c.1.b (with an optical elements, capable of operating in pulse; or output power > 30W), ‘‘super-high power laser’’ applications are a.4.c.2. An average output power exceeding c.2.c.2.a (with an output subject to the export licensing authority of 2.5 Kw; power > 40W), c.2.c.2.b the U.S. Department of State, Office of a.5. ‘‘Chemical lasers’’, as follows: (with an output power > Defense Trade Controls. (See 22 CFR part a.5.a. Hydrogen Fluoride (HF) ‘‘lasers’’; 40W), c.2.d.2.b (with an 121.) a.5.b. Deuterium Fluoride (DF) ‘‘lasers’’; output power > 40W), Related Definitions: (1) Pulsed ‘‘lasers’’ a.5.c. ‘‘Transfer lasers’’, as follows: and d.2.c. include those that run in a continuous a.5.c.1. Oxygen Iodine (O2–I) ‘‘lasers’’; AT applies to entire entry AT Column 1 wave (CW) mode with pulses a.5.c.2. Deuterium Fluoride-Carbon dioxide superimposed. (2) Pulse-excited ‘‘lasers’’ License Exceptions (DF–CO2) ‘‘lasers’’; include those that run in a continuously a.6. Gas discharge and ion ‘‘lasers’’ (i.e., LVS: N/A for NP items excited mode with pulse excitation krypton ion or argon ion ‘‘lasers’’) having any $3000 for all other items superimposed. (3) The control status of of the following: GBS: Yes, for 6A005.d (except d.2.c), CO2 or Raman ‘‘lasers’’ is determined by the a.6.a. An output energy exceeding 1.5 J per CO/CO2 ‘‘lasers’’ having an output parameters of the pumping source ‘‘lasers’’. pulse and a pulsed ‘‘peak power’’ exceeding wavelength in the range from 9,000 to The pumping source ‘‘lasers’’ can be any of 50 W; or 11,000 nm and having a pulsed output not the ‘‘lasers’’ described as follows: a.6.b. An average or CW output power exceeding 2 J per pulse and a maximum Items: a. Gas ‘‘lasers’’, as follows: exceeding 50 W; rated average single or multimode output a.1. Excimer ‘‘lasers’’, having any of the a.7. Other gas ‘‘lasers’’, having any of the power not exceeding 5 Kw; CO ‘‘lasers’’ following: following: having a CW maximum rated single or a.1.a. An output wavelength not exceeding Note: 6A005.a.7 does not control nitrogen multimode output power not exceeding 10 150 nm and having any of the following: ‘‘lasers’’. Kw; CO2 ‘‘lasers’’ controlled by 6A005.a.4 a.1.a.1. An output energy exceeding 50 mJ a.7.a. An output wavelength not exceeding that operate in CW multiple-transverse per pulse; or 150 nm and having any of the following: mode; and having a CW output power not a.1.a.2. An average or CW output power a.7.a.1. An output energy exceeding 50 mJ exceeding 15 Kw; Neodymium-doped exceeding 1 W; per pulse and a pulsed ‘‘peak power’’ (other than glass), pulse-excited, ‘‘Q- a.1.b. An output wavelength exceeding 150 exceeding 1 W; or switched lasers’’ controlled by nm but not exceeding 190 nm and having any a.7.a.2. An average or CW output power 6A005.c.2.b.2.b having a pulse duration of the following: exceeding 1 W;

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a.7.b. An output wavelength exceeding 150 c.2.a.1.a. An output energy exceeding 20 J c.2.c.1. A wavelength less than 150 nm and nm but not exceeding 800 nm and having any but not exceeding 50 J per pulse and an having any of the following: of the following: average output power exceeding 10 W; or c.2.c.1.a. An output energy exceeding 50 a.7.b.1. An output energy exceeding 1.5 J c.2.a.1.b. An output energy exceeding 50 J mJ per pulse and a pulsed ‘‘peak power’’ per pulse and a pulsed ‘‘peak power’’ per pulse; exceeding 1 W; or exceeding 30 W; or c.2.a.2. Non-‘‘Q-switched lasers’’ having c.2.c.1.b. An average or CW output power a.7.b.2. An average or CW output power any of the following: exceeding 1 W; exceeding 30 W; c.2.a.2.a. An output energy exceeding 50 J c.2.c.2. A wavelength of 150 nm or more a.7.c. An output wavelength exceeding 800 but not exceeding 100 J per pulse and an but not exceeding 800 nm and having any of nm but not exceeding 1,400 nm and having average output power exceeding 20 W; or the following: any of the following: c.2.a.2.b. An output energy exceeding 100 c.2.c.2.a. An output energy exceeding 1.5 J a.7.c.1. An output energy exceeding 0.25 J J per pulse; per pulse and a pulsed ‘‘peak power’’ per pulse and a pulsed ‘‘peak power’’ c.2.b. Neodymium-doped (other than glass) exceeding 30 W; or exceeding 10 W; or ‘‘lasers’’, having an output wavelength c.2.c.2.b. An average or CW output power exceeding 30 W; a.7.c.2. An average or CW output power exceeding 1,000 nm but not exceeding 1,100 c.2.c.3. A wavelength exceeding 800 nm exceeding 10 W; or nm, as follows: but not exceeding 1,400 nm, as follows: a.7.d. An output wavelength exceeding N.B.: For neodymium-doped (other than c.2.c.3.a. ‘‘Q-switched lasers’’ having: 1,400 nm and an average or CW output glass) ‘‘lasers’’ having an output wavelength not exceeding 1,000 nm or exceeding 1,100 c.2.c.3.a.1. An output energy exceeding 0.5 power exceeding 1 W. J per pulse and a pulsed ‘‘peak power’’ b. Individual, multiple-transverse mode nm, see 6A005.c.2.d. c.2.b.1. Pulse-excited, mode-locked, ‘‘Q- exceeding 50 W; or semiconductor ‘‘lasers’’ and arrays of switched lasers’’ having a ‘‘pulse duration’’ c.2.c.3.a.2. An average output power individual semiconductor ‘‘lasers’’, having of less than 1 ns and having any of the exceeding: any of the following: following: c.2.c.3.a.2.a. 10 W for single-mode ‘‘lasers’’; b.1. An output energy exceeding 500 µJ per c.2.b.1.a. A ‘‘peak power’’ exceeding 5 GW; c.2.c.3.a.2.b. 30 W for multimode ‘‘lasers’’; pulse and a pulsed ‘‘peak power’’ exceeding c.2.b.1.b. An average output power c.2.c.3.b. Non-’’Q-switched lasers’’ having: 10 W; or exceeding 10 W; or c.2.c.3.b.1. An output energy exceeding 2 b.2. An average or CW output power c.2.b.1.c. A pulsed energy exceeding 0.1 J; J per pulse and a pulsed ‘‘peak power’’ exceeding 10 W. c.2.b.2. Pulse-excited, ‘‘Q-switched lasers’’ exceeding 50 W; or Technical Note: Semiconductor ‘‘lasers’’ having a pulse duration equal to or more than c.2.c.3.b.2. An average or CW output power are commonly called ‘‘laser’’ diodes. 1 ns, and having any of the following: exceeding 50 W; or c.2.c.4. A wavelength exceeding 1,400 nm Note 1: 6A005.b includes semiconductor c.2.b.2.a. A single-transverse mode output and having any of the following: ‘‘lasers’’ having optical output connectors having: c.2.c.4.a. An output energy exceeding 100 (e.g. fiber optic pigtails). c.2.b.2.a.1. A ‘‘peak power’’ exceeding 100 mJ per pulse and a pulsed ‘‘peak power’’ Note 2: The control status of MW; exceeding 1 W; or semiconductor ‘‘lasers’’ specially designed c.2.b.2.a.2. An average output power c.2.c.4.b. An average or CW output power for other equipment is determined by the exceeding 20 W; or exceeding 1 W; control status of the other equipment. c.2.b.2.a.3. A pulsed energy exceeding 2 J; d. Dye and other liquid ‘‘lasers’’, having c. Solid state ‘‘lasers’’, as follows: or any of the following: c.1. ‘‘Tunable’’ ‘‘lasers’’ having any of the c.2.b.2.b. A multiple-transverse mode d.1. A wavelength less than 150 nm and: following: output having: d.1.a. An output energy exceeding 50 mJ Note: 6A005.c.1 includes titanium— c.2.b.2.b.1. A ‘‘peak power’’ exceeding 400 per pulse and a pulsed ‘‘peak power’’ MW; sapphire (Ti: Al2O3), thulium—YAG (Tm: exceeding 1 W; or YAG), thulium—YSGG (Tm: YSGG), c.2.b.2.b.2. An average output power d.1.b. An average or CW output power exceeding 2 kW; or alexandrite (Cr: BeAl2O4) and color center exceeding 1 W; ‘‘lasers’’. c.2.b.2.b.3. A pulsed energy exceeding 2 J; d.2. A wavelength of 150 nm or more but c.2.b.3. Pulse-excited, non-‘‘Q-switched not exceeding 800 nm and having any of the c.1.a. An output wavelength less than 600 lasers’’, having: nm and having any of the following: following: c.2.b.3.a. A single-transverse mode output d.2.a. An output energy exceeding 1.5 J per c.1.a.1. An output energy exceeding 50 mJ having: per pulse and a pulsed ‘‘peak power’’ pulse and a pulsed ‘‘peak power’’ exceeding c.2.b.3.a.1. A ‘‘peak power’’ exceeding 500 20 W; exceeding 1 W; or kW; or c.1.a.2. An average or CW output power d.2.b. An average or CW output power c.2.b.3.a.2. An average output power exceeding 20 W; or exceeding 1 W; exceeding 150 W; or c.1.b. An output wavelength of 600 nm or d.2.c. A pulsed single longitudinal mode c.2.b.3.b. A multiple-transverse mode oscillator having an average output power more but not exceeding 1,400 nm and having output having: any of the following: exceeding 1 W and a repetition rate c.2.b.3.b.1. A ‘‘peak power’’ exceeding 1 exceeding 1 Khz if the ‘‘pulse duration’’ is c.1.b.1. An output energy exceeding 1 J per MW; or pulse and a pulsed ‘‘peak power’’ exceeding less than 100 ns; c.2.b.3.b.2. An average power exceeding 2 d.3. A wavelength exceeding 800 nm but 20 W; or kW; c.1.b.2. An average or CW output power not exceeding 1,400 nm and having any of c.2.b.4. Continuously excited ‘‘lasers’’ the following: exceeding 20 W; or having: c.1.c. An output wavelength exceeding d.3.a. An output energy exceeding 0.5 J per c.2.b.4.a. A single-transverse mode output pulse and a pulsed ‘‘peak power’’ exceeding 1,400 nm and having any of the following: having: c.1.c.1. An output energy exceeding 50 mJ 10 W; or c.2.b.4.a.1. A ‘‘peak power’’ exceeding 500 d.3.b. An average or CW output power per pulse and a pulsed ‘‘peak power’’ kW; or exceeding 1 W; or exceeding 10 W; or c.2.b.4.a.2. An average or CW output power d.4. A wavelength exceeding 1,400 nm and c.1.c.2. An average or CW output power exceeding 150 W; or having any of the following: exceeding 1 W; c.2.b.4.b. A multiple-transverse mode d.4.a. An output energy exceeding 100 mJ c.2. Non-‘‘tunable’’ ‘‘lasers’’, as follows: output having: per pulse and a pulsed ‘‘peak power’’ Note: 6A005.c.2 includes atomic transition c.2.b.4.b.1. A ‘‘peak power’’ exceeding 1 exceeding 1 W; or solid state ‘‘lasers’’. MW; or d.4.b. An average or CW output power c.2.a. Neodymium glass ‘‘lasers’’, as c.2.b.4.b.2. An average or CW output power exceeding 1 W; follows: exceeding 2 kW; e. Components, as follows: c.2.a.1. ‘‘Q-switched lasers’’ having any of c.2.c. Other non-‘‘tunable’’ ‘‘lasers’’, having e.1. Mirrors cooled either by active cooling the following: any of the following: or by heat pipe cooling;

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Technical Note: Active cooling is a cooling b.1. 0.05 nT rms/square root Hz at Items: a. Gravity meters for ground use technique for optical components using frequencies of less than 1 Hz; having a static accuracy of less (better) than flowing fluids within the subsurface b.2. 1 × 10¥3 nT rms/square root Hz at 10 µgal; (nominally less than 1 mm below the optical frequencies of 1 Hz or more but not Note: 6A007.a does not control ground surface) of the optical component to remove exceeding 10 Hz; or gravity meters of the quartz element heat from the optic. b.3. 1 × 10¥4 nT rms/square root Hz at (Worden) type. e.2. Optical mirrors or transmissive or frequencies exceeding 10 Hz; b. Gravity meters for mobile platforms for partially transmissive optical or electro- c. Fiber optic ‘‘magnetometers’’ having a ground, marine, submersible, space or optical components specially designed for ‘‘noise level’’ (sensitivity) lower (better) than airborne use, having all of the following: use with controlled ‘‘lasers’’; 1 nT rms per square root Hz; b.1. A static accuracy of less (better) than f. Optical equipment, as follows: d. ‘‘Magnetic gradiometers’’ using multiple 0.7 mgal; and (For shared aperture optical elements, ‘‘magnetometers’’ controlled by 6A006.a, b.2. An in-service (operational) accuracy of capable of operating in ‘‘Super-High Power 6A006.b or 6A006.c; less (better) than 0.7 mgal having a time-to- Laser’’ (‘‘SHPL’’) applications, see the U.S. e. Fiber optic ‘‘intrinsic magnetic steady-state registration of less than 2 Munitions List.) gradiometers’’ having a magnetic gradient minutes under any combination of attendant f.1. Dynamic wavefront (phase) measuring field ‘‘noise level’’ (sensitivity) lower (better) corrective compensations and motional equipment capable of mapping at least 50 than 0.3 nT/m rms per square root Hz; influences; positions on a beam wavefront having any of f. ‘‘Intrinsic magnetic gradiometers’’, using c. Gravity gradiometers. the following: ‘‘technology’’ other than fiber-optic f.1.a. Frame rates equal to or more than 100 ‘‘technology’’, having a magnetic gradient 6A008 Radar systems, equipment and Hz and phase discrimination of at least 5% field ‘‘noise level’’ (sensitivity) lower (better) assemblies having any of the of the beam’s wavelength; or than 0.015 nT/m rms per square root Hz; characteristics (see List of Items f.1.b. Frame rates equal to or more than g. Magnetic compensation systems for Controlled), and specially designed 1,000 Hz and phase discrimination of at least magnetic sensors designed for operation on components therefor. 20% of the beam’s wavelength; mobile platforms; License Requirements f.2. ‘‘Laser’’ diagnostic equipment capable h. ‘‘Superconductive’’ electromagnetic Reason for Control: NS, MT, AT of measuring ‘‘SHPL’’ system angular beam sensors, components manufactured from steering errors of equal to or less than 10 ‘‘superconductive’’ materials: Control(s) Country Chart µrad; h.1. Designed for operation at temperatures f.3. Optical equipment and components below the ‘‘critical temperature’’ of at least NS applies to entire entry NS Column 2 specially designed for a phased-array one of their ‘‘superconductive’’ constituents MT applies to items that MT Column 1 ‘‘SHPL’’ system for coherent beam (including Josephson effect devices or are designed for air- combination to an accuracy of lambda/10 at ‘‘superconductive’’ quantum interference borne applications and µ the designed wavelength, or 0.1 m, devices (SQUIDS)); that are usable in sys- whichever is the smaller; h.2. Designed for sensing electromagnetic tems controlled for MT f.4. Projection telescopes specially field variations at frequencies of 1 kHz or reasons. designed for use with ‘‘SHPL’’ systems. less; and AT applies to entire entry AT Column 1 h.3. Having any of the following 6A006 ``Magnetometers'', ``magnetic License Requirement Notes: See § 743.1 of characteristics: gradiometers'', ``intrinsic magnetic the EAR for reporting requirements for h.3.a. Incorporating thin-film SQUIDS with gradiometers'' and compensation systems, exports under License Exceptions. a minimum feature size of less than 2 µm and and specially designed components with associated input and output coupling License Exceptions therefor, as follows (see List of Items circuits; LVS: $5000; N/A for MT and 6A008.l.3 Controlled). h.3.b. Designed to operate with a magnetic GBS: Yes, for 6A008.b, .c, and l.1 only License Requirements field slew rate exceeding 1 × 106 magnetic CIV: Yes, for 6A008.b, .c, and l.1 only Reason for Control: NS, AT flux quanta per second; List of Items Controlled h.3.c. Designed to function without Unit: $ value Control(s) Country Chart magnetic shielding in the earth’s ambient Related Controls: See also 6A108 and 6A998. magnetic field; or This entry does not control: (1) Secondary NS applies to entire entry NS Column 2 h.3.d. Having a temperature coefficient less surveillance radar (SSR); (2) Car radar AT applies to entire entry AT Column 1 (smaller) than 0.1 magnetic flux quantum/K. designed for collision prevention; (3) License Requirement Notes: See § 743.1 of Displays or monitors used for Air Traffic 6A007 Gravity meters (gravimeters) and Control (ATC) having no more than 12 the EAR for reporting requirements for gravity gradiometers, as follows (see List of exports under License Exceptions. resolvable elements per mm; (4) Items Controlled). Meteorological (weather) radar. License Exceptions License Requirements Related Definitions: N/A LVS: $1500 Reason for Control: NS, MT, AT Items: a. Operating at frequencies from 40 GBS: N/A GHz to 230 GHz and having an average CIV: N/A Control(s) Country Chart output power exceeding 100 mW; List of Items Controlled b. Having a tunable bandwidth exceeding ± Unit: $ value NS applies to entire entry NS Column 2 6.25% of the center operating frequency; Related Controls: See also 6A996. This entry MT applies to 6A007.b MT Column 1 Technical Note: The center operating does not control instruments specially and .c when the accura- frequency equals one half of the sum of the designed for biomagnetic measurements for cies in 6A007.b.1 and highest plus the lowest specified operating medical diagnostics. b.2 are met or exceeded. frequencies. Related Definitions: N/A AT applies to entire entry AT Column 1 c. Capable of operating simultaneously on Items: a. ‘‘Magnetometers’’ using License Exceptions more than two carrier frequencies; ‘‘superconductive’’, optically pumped or d. Capable of operating in synthetic LVS: $3000; N/A for MT nuclear precession (proton/Overhauser) aperture (SAR), inverse synthetic aperture GBS: N/A ‘‘technology’’ having a ‘‘noise level’’ (ISAR) radar mode, or sidelooking airborne CIV: N/A (sensitivity) lower (better) than 0.05 nT rms (SLAR) radar mode; per square root Hz; List of Items Controlled e. Incorporating ‘‘electronically steerable b. Induction coil ‘‘magnetometers’’ having Unit: $ value phased array antennae’’; a ‘‘noise level’’ (sensitivity) lower (better) Related Controls: See also 6A107 and 6A997 f. Capable of heightfinding non-cooperative than any of the following: Related Definitions: N/A targets;

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Note: 6A008.f does not control precision 6A018 Magnetic, pressure, and acoustic Control(s) Country Chart approach radar (PAR) equipment conforming underwater detection devices specially to ICAO standards. designed for military purposes and controls AT applies to entire entry AT Column 1 and components therefor. g. Specially designed for airborne (balloon License Exceptions or airframe mounted) operation and having License Requirements LVS: N/A Doppler ‘‘signal processing’’ for the detection Reason for Control: NS, AT of moving targets; GBS: N/A CIV: N/A h. Employing processing of radar signals Control(s) Country Chart using any of the following: List of Items Controlled h.1. ‘‘Radar spread spectrum’’ techniques; NS applies to entire entry NS Column 1 Unit: $ value or AT applies to entire entry AT Column 1 Related Controls: N/A h.2. ‘‘Radar frequency agility’’ techniques; License Exceptions Related Definitions: N/A i. Providing ground-based operation with a Items: The list of items controlled is maximum ‘‘instrumented range’’ exceeding LVS: $5000 GBS: N/A contained in the ECCN heading. 185 km; CIV: N/A Note: 6A008.i does not control: 6A108 Radar systems and tracking List of Items Controlled a. Fishing ground surveillance radar; systems, other than those controlled by b. Ground radar equipment specially Unit: Equipment in number;components in $ 6A008, as follows (see List of Items designed for enroute air traffic control, value Controlled). Related Controls: N/A provided that all the following conditions are License Requirements met: Related Definitions: N/A Reason for Control: MT, AT 1. It has a maximum ‘‘instrumented range’’ Items: The list of items controlled is contained in the ECCN heading. of 500 km or less; Control(s) Country Chart 2. It is configured so that radar target data 6A102 Radiation hardened detectors, can be transmitted only one way from the other than those controlled by 6A002, for MT applies to entire entry MT Column 1 radar site to one or more civil ATC centers; use in protecting against nuclear effects AT applies to entire entry AT Column 1 3. It contains no provisions for remote (e.g. electromagnetic pulse (EMP), X-rays, control of the radar scan rate from the combined blast and thermal effects) and License Exceptions enroute ATC center; and usable for ``missiles'', designed or rated to LVS: N/A 4. It is to be permanently installed; withstand radiation levels that meet or GBS: N/A c. Weather balloon tracking radars. exceed a total irradiation dose of 5 x 105 CIV: N/A j. Being ‘‘laser’’ radar or Light Detection rads (Si). List of Items Controlled and Ranging (LIDAR) equipment, having any License Requirements of the following: Unit: $ value Reason for Control: MT, AT j.1. ‘‘Space-qualified’’; or Related Controls: (1) This entry does not j.2. Employing coherent heterodyne or control airborne civil weather radar Control(s) Country Chart homodyne detection techniques and having conforming to international standards for civil weather radars provided that they do an angular resolution of less (better) than 20 MT applies to entire entry MT Column 1 µ not incorporate any of the following: (a) r (microradians); AT applies to entire entry AT Column 1 Note: 6A008.j does not control LIDAR Phased array antennas; (b) Frequency agility; License Exceptions equipment specially designed for surveying (c) Spread spectrum; or (d) Signal processing or for meteorological observation. LVS: N/A specially designed for the tracking of GBS: N/A k. Having ‘‘signal processing’’ sub-systems vehicles. (2) Items in 6A108.a that are CIV: N/A using ‘‘pulse compression’’, with any of the specially designed or modified for ‘‘missiles’’ following: List of Items Controlled or for items on the U.S. Munitions List are k.1. A ‘‘pulse compression’’ ratio exceeding Unit: Components in number subject to the export licensing authority of 150; or Related Controls: N/A the U.S. Department of State, Defense Trade k.2. A pulse width of less than 200 ns; or Related Definitions: In this entry, a detector Controls (see 22 CFR part 121). l. Having data processing sub-systems with is defined as a mechanical, electrical, Related Definitions: Laser radar systems are any of the following: optical or chemical device that defined as those that embody specialized l.1. ‘‘Automatic target tracking’’ providing, automatically identifies and records, or transmission, scanning, receiving and signal at any antenna rotation, the predicted target registers a stimulus such as an processing techniques for utilization of lasers position beyond the time of the next antenna environmental change in pressure or for echo ranging, direction finding and beam passage; temperature, an electrical or discrimination of targets by location, radial electromagnetic signal or radiation from a speed and body reflection characteristics. Note: 6A008.l.1 does not control conflict radioactive material. Items: a. Radar and laser radar systems alert capability in ATC systems, or marine or Items: The list of items controlled is designed or modified for use in ‘‘missiles’’; harbor radar. contained in the ECCN heading. l.2. Calculation of target velocity from b. Precision tracking systems, usable for primary radar having non-periodic (variable) 6A107 Gravity meters (gravimeters), ‘‘missiles’’, as follows: scanning rates; gravity gradiometers, and specially b.1. Tracking systems that use a code l.3. Processing for automatic pattern designed components therefore, other than translator in conjunction with either surface recognition (feature extraction) and those controlled by 6A007.b and .c, or airborne references or navigation satellite comparison with target characteristic data designed or modified for airborne or marine systems to provide real-time measurements bases (waveforms or imagery) to identify or use, having a static or operational accuracy of in-flight position and velocity; classify targets; or of 7 µ10 ¥6 m/sec2 (0.7 milligal) or better, b.2. Range instrumentation radars l.4. Superposition and correlation, or and a time to steady-state registration of including associated optical/infrared trackers fusion, of target data from two or more two minutes or less. with all of the following capabilities: ‘‘geographically dispersed’’ and License Requirements b.2.a. Angular resolution better than 3 ‘‘interconnected radar sensors’’ to enhance Reason for Control: MT, AT milliradians (0.5 mils); and discriminate targets. b.2.b. Range of 30 km or greater with a Note: 6A008.l.4 does not control systems, Control(s) Country Chart range resolution better than 10 m rms; equipment and assemblies used for marine b.2.c. Velocity resolution better than traffic control. MT applies to entire entry MT Column 1 3 m/s.

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6A202 Photomultiplier tubes with a b.3.c. Kerr or pocket cell electro-optical Control(s) Country Chart photocathode area of greater than 20 cm2 shuttering; or having an anode pulse rise time of less than b.3.d. Other framing tubes and solid-state NP applies to entire entry NP Column 1 1 ns. imaging devices having a fast-image gating AT applies to entire entry AT Column 1 time of less than 50 ns specially designed for License Requirements License Exceptions cameras controlled by 6A203.b.2; Reason for Control: NP, AT c. Radiation-hardened TV cameras, or LVS: N/A lenses therefor, specially designed or rated as GBS: N/A Control(s) Country Chart radiation hardened to withstand greater than CIV: N/A 50 × 103 grays (Silicon) (5 × 106 rad (Silicon)) List of Items Controlled NP applies to entire entry NP Column 1 without operational degradation. Unit: Equipment in number; parts and AT applies to entire entry AT Column 1 accessories in $ value License Exceptions 6A205 ``Lasers'', other than those Related Controls: N/A LVS: N/A controlled 6A005, as follows (see List of Related Definitions: N/A GBS: N/A Items Controlled). Items: The list of items controlled is CIV: N/A License Requirements contained in the ECCN heading. List of Items Controlled Reason for Control: NP, AT 6A226 Pressure sensors, as follows (see Unit: Number List of Items Controlled). Control(s) Country Chart Related Controls: N/A License Requirements Related Definitions: N/A Reason for Control: NP, AT Items: The list of items controlled is NP applies to entire entry NP Column 1 contained in the ECCN heading. AT applies to entire entry AT Column 1 Control(s) Country Chart License Exceptions 6A203 Cameras and components, other LVS: N/A than those controlled by 6A003, as follows NP applies to entire entry NP Column 1 GBS: N/A (see List of Items Controlled). AT applies to entire entry AT Column 1 CIV: N/A License Exceptions License Requirements List of Items Controlled Reason for Control: NP, AT LVS: N/A Unit: Equipment in number; parts and GBS: N/A accessories in $ value CIV: N/A Control(s) Country Chart Related Controls: See also 0B001.g.5 and List of Items Controlled 0B001.h.6 NP applies to entire entry NP Column 1 Related Definitions: N/A Unit: Equipment in number; parts and AT applies to entire entry AT Column 1 Items: a. Argon ion ‘‘lasers’’ with greater than accessories in $ value Related Controls: N/A License Exceptions 40 W average output power operating at wavelengths between 400 nm and 515 nm; Related Definitions: N/A LVS: N/A Items: a. Manganin gauges for pressures b. Tunable pulsed single-mode dye GBS: N/A greater than 100 kilobars; or oscillators capable of an average power CIV: N/A b. Quartz pressure transducers for output of greater than 1 W, a repetition rate pressures greater than 100 kilobars. List of Items Controlled greater than 1 kHz, a pulse less than 100 ns, Unit: Equipment and components in number; and a wavelength between 300 nm and 800 6A991 Marine or terrestrial acoustic parts and accessories in $ value nm; equipment, n.e.s., capable of detecting or Related Controls: N/A c. Tunable pulsed dye laser amplifiers and locating underwater objects or features or Related Definitions: N/A oscillators, with an average power output of positioning surface vessels or underwater Items: a. Mechanical rotating mirror cameras, greater than 30 W, a repetition rate greater vehicles; and specially designed as follows, and specially designed than 1 kHz, a pulse width less than 100 ns, components, n.e.s. components therefor: and a wavelength between 300 nm and 800 License Requirements a.1. Framing cameras with recording rates nm, except single mode oscillators; greater than 225,000 frames per second; or d. Pulsed carbon dioxide ‘‘lasers’’ with a Reason for Control: AT a.2. Streak cameras with writing speeds repetition rate greater than 250 Hz, an greater than 0.5 mm per microsecond; average power output of greater than 500 W, Control(s) Country Chart Note: Components of such cameras include and a pulse of less than 200 ns operating at AT applies to entire entry AT Column 2 their synchronizing electronic units and rotor wavelengths between 9,000 nm and 11,000 assemblies consisting of turbines, mirrors nm; License Exceptions and bearings. e. Para-hydrogen Raman shifters designed LVS: N/A b. Electronic streak and framing cameras to operate at 16 micrometer output GBS: N/A and tubes, as follows: wavelength and at a repetition rate greater CIV: N/A b.1. Electronic streak cameras capable of 50 than 250 Hz; List of Items Controlled ns or less time resolution and streak tubes f. Pulse-excited, Q-switched Neodymium- doped (other than glass) ‘‘lasers’’, having all Unit: $ value therefor; Related Controls: N/A b.2. Electronic (or electronically shuttered) of the following: f.1. An output wavelength exceeding 1,000 Related Definitions: N/A framing cameras capable of 50 ns or less Items: The list of items controlled is nm but not exceeding 1,100 nm; frame exposure time; contained in the ECCN heading. b.3. Framing tubes and solid-state imaging f.2. A pulse duration equal to or more than devices for use with cameras controlled by 1 ns; and 6A992 Optical Sensors, not controlled by 6A203.b.2, as follows: f.3. A multiple-transverse mode output 6A002. having an average power exceeding 50 W. b.3.a. Proximity focused image intensifier License Requirements tubes having the photocathode deposited on 6A225 Velocity interferometers for Reason for Control: AT a transparent conductive coating to decrease measuring velocities in excess of 1 km/s photocathode sheet resistance; during time intervals of less than 10 Control(s) Country Chart b.3.b. Gate silicon intensifier target (SIT) microsecond (VISARs, Doppler laser videcon tubes, where a fast system allows interferometers (DLIs), etc.). AT applies to entire entry AT Column 1 gating the photoelectrons from the photocathode before they impinge on the SIT License Requirements License Exceptions plate; Reason for Control: NP, AT LVS: N/A

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GBS: N/A dB/km in the wavelength range exceeding 6A996 ``Magnetometers'', n.e.s., having a CIV: N/A 1,000 nm but not exceeding 3,000 nm. ``noise level'' (sensitivity) lower (better) List of Items Controlled than 1.0 nT rms per square root Hz. 6A995 ``Lasers'', not controlled by 6A005 License Requirements Unit: Equipment in number; parts and or 6A205. accessories in $ value Reason for Control: AT Related Controls: N/A License Requirements Related Definitions: N/A Reason for Control: AT Control(s) Country Chart Items: a. Image intensifier tubes and specially designed components therefor, as follows: Control(s) Country Chart AT applies to entire entry AT Column 1 a.1. Image intensifier tubes having all the License Exceptions following: AT applies to entire entry AT Column 1 a.1.a. A peak response in wavelength range LVS: N/A exceeding 400 nm, but not exceeding 1,050 License Exceptions GBS: N/A nm; LVS: N/A CIV: N/A a.1.b. A microchannel plate for electron GBS: N/A List of Items Controlled image amplification with a hole pitch CIV: N/A Unit: $ value (center-to-center spacing) of less than 25 List of Items Controlled Related Controls: N/A micrometers; and Unit: Equipment in number; parts and Related Definitions: N/A a.1.c. Having any of the following: Items: The list of items controlled is accessories in $ value a.1.c.1. An S–20, S–25 or multialkali contained in the ECCN heading. photocathode; or Related Controls: N/A a.1.c.2. A GaAs or GaInAs photocathode; Related Definitions: N/A 6A997 Gravity meters (gravimeters) for a.2. Specially designed microchannel Items: a. Carbon dioxide (CO2) ‘‘lasers’’ ground use, n.e.s. plates having both of the following having any of the following: License Requirements characteristics: a.1. A CW output power exceeding 10 kW; a.2.a. 15,000 or more hollow tubes per a.2. A pulsed output with a ‘‘pulse Reason for Control: AT plate; and duration’’ exceeding 10 microseconds; and Control(s) Country Chart a.2.b. Hole pitch (center-to-center spacing) a.2.a. An average output power exceeding of less than 25 micrometers. 10 kW; or AT applies to entire entry AT Column 1 a.2.b. A pulsed ‘‘peak power’’ exceeding 6A994 Optics, not controlled by 6A004. 100 kW; or License Exceptions License Requirements a.3. A pulsed output with a ‘‘pulse LVS: N/A Reason for Control: AT duration’’ equal to or less than 10 GBS: N/A microseconds; and CIV: N/A Control(s) Country Chart a.3.a. A pulse energy exceeding 5 J per List of Items Controlled pulse and ‘‘peak power’’ exceeding 2.5 kW; Unit: $ value AT applies to entire entry AT Column 1 or Related Controls: N/A License Exceptions a.3.b. An average output power exceeding Related Definitions: N/A LVS: N/A 2.5 kW; Items: a. Having a static accuracy of less GBS: N/A b. Semiconductor lasers, as follows: (better) than 100 microgal; or CIV: N/A b.1. Individual, single-transverse mode b. Being of the quartz element (Worden) semiconductor ‘‘lasers’’ having: type. List of Items Controlled b.1.a. An average output power exceeding Unit: Equipment in number; parts and 100 mW; or 6A998 Airborne radar equipment, n.e.s., and specially designed components accessories in $ value b.1.b. A wavelength exceeding 1,050 nm; Related Controls: N/A therefor. b.2. Individual, multiple-transverse mode Related Definitions: N/A semiconductor ‘‘lasers’’, or arrays of License Requirements Items: a. Optical filters: a.1. For wavelengths longer than 250 nm, individual semiconductor ‘‘lasers’’, having a Reason for Control: AT comprised of multi-layer optical coatings and wavelength exceeding 1,050 nm; having either of the following: c. Solid state, non-‘‘tunable’’ ‘‘lasers’’, as Control(s) Country Chart a.1.a. Bandwidths equal to or less than 1 follows: AT applies to entire entry AT Column 1 nm Full Width Half Intensity (FWHI) and c.1. Ruby ‘‘lasers’’ having an output energy peak transmission of 90% or more; or exceeding 20 J per pulse; License Exceptions a.1.b. Bandwidths equal to or less than 0.1 c.2. Neodymium-doped (other than glass) LVS: N/A nm FWHI and peak transmission of 50% or ‘‘lasers’’, as follows, with an output GBS: N/A more; wavelength exceeding 1,000 nm but not CIV: N/A exceeding 1,100 nm: Note: 6A994 does not control optical filters List of Items Controlled with fixed air gaps or Lyot-type filters. c.2.a. Pulse-excited, ‘‘Q-switched lasers’’, with a pulse duration equal to or more than Unit: $ value a.2. For wavelengths longer than 250 nm, 1 ns, and a multiple-transverse mode output Related Controls: N/A and having all of the following: Related Definitions: N/A a.2.a. Tunable over a spectral range of 500 with any of the following: c.2.a.1. A ‘‘peak power’’ exceeding 200 Items: The list of items controlled is nm or more; contained in the ECCN heading. a.2.b. Instantaneous optical bandpass of mW; or 1.25 nm or less; c.2.a.2. An average output power exceeding B. Test, Inspection and Production a.2.c. Wavelength resettable within 0.1 ms 50 W; Equipment to an accuracy of 1 nm or better within the c.2.b. Pulse-excited, non-‘‘Q-switched 6B004 Optical equipment, as follows (see tunable spectral range; and lasers’’, having a multiple-transverse mode List of Items Controlled). a.2.d. A single peak transmission of 91% output with an average power exceeding 500 or more; W; or License Requirements a.3. Optical opacity switches (filters) with c.2.c. Continuously excited ‘‘lasers’’ having Reason for Control: NS, AT a field of view of 30° or wider and a response a multiple-transverse mode output with an time equal to or less than 1 ns; average or CW output power exceeding 500 Control(s) Country Chart b. ‘‘Fluoride fiber’’ cable, or optical fibers W; therefor, having an attenuation of less than 4 d. Free electron ‘‘lasers’’. NS applies to entire entry NS Column 2

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Control(s) Country Chart Reason for Control: MT, AT 6C004 Optical materials, as follows (see List of Items Controlled). AT applies to entire entry AT Column 1 Control(s) Country Chart License Requirements Reason for Control: NS, AT License Exceptions MT applies to entire entry MT Column 1 LVS: $5000 AT applies to entire entry AT Column 1 GBS: Yes for 6B004.b Control(s) Country Chart CIV: Yes for 6B004.b License Exceptions NS applies to entire entry NS Column 2 List of Items Controlled LVS: N/A AT applies to entire entry AT Column 1 Unit: Number GBS: N/A Related Controls: This entry does not control CIV: N/A License Exceptions microscopes. List of Items Controlled LVS: $1500 Related Definitions: N/A Unit: Number GBS: Yes for 6C004.a and .e Items: a. Equipment for measuring absolute CIV: Yes for 6C004.a and .e ± Related Controls: N/A reflectance to an accuracy of 0.1% of the Related Definitions: N/A List of Items Controlled reflectance value; Items: The list of items controlled is Unit: $ value b. Equipment other than optical surface contained in the ECCN heading. Related Controls: See also 6C994 scattering measurement equipment, having Related Definitions: N/A an unobscured aperture of more than 10 cm, 6B995 Specially designed or modified Items: a. Zinc selenide (ZnSe) and zinc specially designed for the non-contact optical equipment, including tools, dies, fixtures or sulphide (ZnS) ‘‘substrate blanks’’ produced measurement of a non-planar optical surface gauges, and other specially designed by the chemical vapor deposition process, figure (profile) to an ‘‘accuracy’’ of 2 nm or components and accessories therefor: having any of the following: less (better) against the required profile. License Requirements a.1. A volume greater than 100 cm3; or a.2. A diameter greater than 80 mm having 6B007 Equipment to produce, align and Reason for Control: AT calibrate land-based gravity meters with a a thickness of 20 mm or more; static accuracy of better than 0.1 mgal. b. Boules of the following electro-optic Control(s) Country Chart materials: License Requirements b.1. Potassium titanyl arsenate (KTA); Reason for Control: NS, AT AT applies to entire entry AT Column 1 b.2. Silver gallium selenide (AgGaSe2); License Exceptions b.3. Thallium arsenic selenide (Tl3AsSe3, Control(s) Country Chart also known as TAS; LVS: N/A c. Non-linear optical materials, having all NS applies to entire entry NS Column 2 GBS: N/A of the following: AT applies to entire entry AT Column 1 CIV: N/A c.1. Third order susceptibility (chi 3) of License Exceptions List of Items Controlled 10–6 m2/V2 or more; and c.2. A response time of less than 1 ms; LVS: $5000 Unit: Equipment in number; parts and d. ‘‘Substrate blanks’’ of silicon carbide or GBS: N/A accessories in $ value beryllium beryllium (Be/Be) deposited CIV: N/A Related Controls: N/A materials exceeding 300 mm in diameter or Related Definitions: N/A List of Items Controlled major axis length; Items: a. For the manufacture or inspection Unit: Number e. Glass, including fused silica, phosphate of: Related Controls: N/A glass, fluorophosphate glass, zirconium a.1. Free electron ‘‘laser’’ magnet wigglers; Related Definitions: N/A fluoride (ZrF4) and hafnium fluoride (HfF4), Items: The list of items controlled is a.2. Free electron ‘‘laser’’ photo injectors; having all of the following: contained in the ECCN heading. b. For the adjustment, to required e.1. A hydroxyl ion (OH-) concentration of tolerances, of the longitudinal magnetic field less than 5 ppm; 6B008 Pulse radar cross-section of free electron ‘‘lasers’’. e.2. Integrated metallic purity levels of less measurement systems having transmit C. Materials than 1 ppm; and pulse widths of 100 ns or less and specially e.3. High homogeneity (index of refraction designed components therefor. 6C002 Optical sensor materials, as follows variance) less than 5 × 10–6; License Requirements (see List of Items Controlled). f. Synthetically produced diamond material with an absorption of less than Reason for Control: NS, MT, AT License Requirements 10¥5 cm¥1 for wavelengths exceeding 200 Reason for Control: NS, AT Control(s) Country Chart nm but not exceeding 14,000 nm.

NS applies to entire entry NS Column 2 Control(s) Country Chart 6C005 Synthetic crystalline ``laser'' host MT applies to entire entry MT Column 1 material in unfinished form, as follows (see AT applies to entire entry AT Column 1 NS applies to entire entry NS Column 2 List of Items Controlled). AT applies to entire entry AT Column 1 License Requirements License Exceptions License Exceptions Reason for Control: NS, AT LVS: N/A GBS: N/A LVS: $3000 Control(s) Country Chart CIV: N/A GBS: N/A CIV: N/A List of Items Controlled NS applies to entire entry NS Column 2 Unit: Number List of Items Controlled AT applies to entire entry AT Column 1 Unit: Number Related Controls: See also 6B108 License Exceptions Related Definitions: N/A Related Controls: See also 6C992 Items: The list of items controlled is Related Definitions: N/A LVS: $1500 contained in the ECCN heading. Items: a. Elemental tellurium (Te) of purity GBS: N/A levels of 99.9995% or more; CIV: N/A 6B108 Systems, other than those b. Single crystals of cadmium telluride List of Items Controlled controlled by 6B008, specially designed for (CdTe), cadmium zinc telluride (CdZnTe) or Unit: Kilograms radar cross section measurement usable mercury cadmium telluride (HgCdTe) of any Related Controls: N/A for ``missiles'' and other subsystems. purity level, including epitaxial wafers Related Definitions: N/A License Requirements thereof. Items: a. Titanium doped sapphire;

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b. Alexandrite. Control(s) Country Chart Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, 6C992 Optical sensing fibers not MT applies to ‘‘software’’ MT Column 1 Spain, Sweden, or the United Kingdom of controlled by 6A002.d.3 which are modified for equipment con- ‘‘software’’ for items controlled by 6D003.a. structurally to have a ``beat length'' of less trolled by 6A008 or List of Items Controlled than 500 mm (high birefringence). 6B008 for MT reasons. Unit: $ value License Requirements NP applies to ‘‘software’’ NP Column 1 Related Controls: See also 6D103 and 6D993 Reason for Control: AT for equipment con- Related Definitions: N/A trolled by 6A005 for NP Items: a. Acoustics ‘‘software’’, as follows: reasons. Control(s) Country Chart a.1. ‘‘Software’’ specially designed for AT applies to entire entry AT Column 1 acoustic beam forming for the ‘‘real time AT applies to entire entry AT Column 1 License Requirement Notes: See § 743.1 of processing’’ of acoustic data for passive the EAR for reporting requirements for reception using towed hydrophone arrays; License Exceptions exports under License Exceptions. a.2. ‘‘Source code’’ for the ‘‘real time processing’’ of acoustic data for passive LVS: N/A License Exceptions GBS: N/A reception using towed hydrophone arrays; CIV: N/A CIV: N/A a.3. ‘‘Software’’ specially designed for TSR: Yes, except N/A for MT and for exports bottom or bay cable systems and having List of Items Controlled or reexports to destinations outside of beamforming or ‘‘source code’’ for ‘‘real time Unit: Equipment in number; parts and Austria, Belgium, Canada, Denmark, processing’’ of acoustic data for passive accessories in $ value Finland, France, Germany, Greece, Ireland, reception; Related Controls: N/A Italy, Luxembourg, the Netherlands, b. Optical sensors. None. Related Definitions: N/A Portugal, Spain, Sweden, or the United c. Cameras. None. Items: The list of items controlled in Kingdom of ‘‘software’’ for items controlled d. Optics. None. contained in the ECCN heading. by 6A008.l.3 or 6B008. e. Lasers. None List of Items Controlled f. Magnetometers. 6C994 Optical materials. Unit: $ value f.1. ‘‘Software’’ specially designed for License Requirements Related Controls: See also 6D991 magnetic compensation systems for magnetic Related Definitions: N/A sensors designed to operate on mobile Reason for Control: AT Items: The list of items controlled is platforms; contained in the ECCN heading. f.2. ‘‘Software’’ specially designed for Control(s) Country Chart magnetic anomaly detection on mobile 6D002 ``Software'' specially designed for platforms; AT applies to entire entry AT Column 1 the ``use'' of equipment controlled by g. Gravimeters. ‘‘Software’’ specially License Exceptions 6A002.b, 6A008 or 6B008. designed to correct motional influences of LVS: N/A License Requirements gravity meters or gravity gradiometers; h. Radar ‘‘software’’, as follows: GBS: N/A Reason for Control: NS, MT, AT h.1. Air Traffic Control ‘‘software’’ CIV: N/A Control(s) Country Chart application ‘‘programs’’ hosted on general List of Items Controlled purpose computers located at Air Traffic Unit: Equipment in number; parts and NS applies to entire entry NS Column 1 Control centers and capable of any of the accessories in $ value MT applies to ‘‘software’’ MT Column 1 following: Related Controls: N/A for equipment con- h.1.a. Processing and displaying more than Related Definitions: N/A trolled by 6A008 or 150 simultaneous ‘‘system tracks’’; or Items: a. Low optical absorption materials, as 6B008 for MT reasons. h.1.b. Accepting radar target data from follows: AT applies to entire entry AT Column 1 more than four primary radars; a.1. Bulk fluoride compounds containing h.2. ‘‘Software’’ for the design or License Exceptions ‘‘production’’ of radomes which: ingredients with a purity of 99.999% or CIV: N/A h.2.a. Are specially designed to protect the better; or TSR: Yes, except N/A for MT ‘‘electronically steerable phased array Note: 6C994.a.1 controls fluorides of List of Items Controlled antennae’’ controlled by 6A008.e.; and zirconium or aluminum and variants. Unit: $ value h.2.b. Result in an antenna pattern having a.2. Bulk fluoride glass made from Related Controls: See also 6D102 and 6D992 an ‘‘average side lobe level’’ more than 40 dB compounds controlled by 6C004.e.1; Related Definitions: N/A below the peak of the main beam level. b. ‘‘Optical fiber preforms’’ made from bulk Items: The list of items controlled is Technical Note: ‘‘Average side lobe level’’ fluoride compounds containing ingredients contained in the ECCN heading. in 6D003.h.2.b is measured over the entire with a purity of 99.999% or better, specially array excluding the angular extent of the designed for the manufacture of ‘‘fluoride 6D003 Other ``software'', as follows (see main beam and the first two side lobes on fibers’’ controlled by 6A994.b. List of Items Controlled). either side of the main beam. License Requirements D. Software 6D102 ``Software'' specially designed for Reason for Control: NS, AT the ``use'' of goods controlled by 6A108. 6D001 ``Software'' specially designed for License Requirements the ``development'' or ``production'' of Control(s) Country Chart equipment controlled by 6A004, 6A005, Reason for Control: MT, AT 6A008 or 6B008. NS applies to entire entry NS Column 1 AT applies to entire entry AT Column 1 Control(s) Country Chart License Requirements Reason for Control: NS, MT, NP, AT License Requirement Notes: See § 743.1 of MT applies to entire entry MT Column 1 the EAR for reporting requirements for AT applies to entire entry AT Column 1 exports under License Exceptions. Control(s) Country Chart License Exceptions License Exceptions NS applies to ‘‘software’’ NS Column 1 CIV: Yes for 6D003.h.1 CIV: N/A for equipment con- TSR: Yes, except for exports or reexports to TSR: N/A trolled by 6A004, destinations outside of Austria, Belgium, List of Items Controlled 6A005, 6A008 or 6B008. Canada, Denmark, Finland, France, Unit: $ value

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Related Controls: N/A 6D992 ``Software'' specially designed for Control(s) Country Chart Related Definitions: N/A the ``development'' or ``production'' of Items: The list of items controlled is equipment controlled by 6A992, 6A994, or MT applies to ‘‘tech- MT Column 1 contained in the ECCN heading 6A995. nology’’ for items con- License Requirements trolled by 6A002, 6D103 ``Software'' that processes post- 6A007, 6A008, 6A102, flight, recorded data, obtained from the Reason for Control: AT 6A107, 6A108, 6B008, systems controlled by 6A108.b, enabling 6B108, 6D001, 6D002, determination of vehicle position Control(s) Country Chart 6D102 or 6D103 for MT throughout its flight path. reasons. License Requirements AT applies to entire entry AT Column 1 NP applies to ‘‘tech- NP Column 2 Reason for Control: MT, AT License Exceptions nology’’ for equipment controlled by 6A003, CIV: N/A Control(s) Country Chart 6A005, 6A202, 6A203, TSR: N/A 6A205, 6A225 or 6A226 MT applies to entire entry MT Column 1 List of Items Controlled for NP reasons. AT applies to entire entry AT Column 1 Unit: $ value RS applies to ‘‘tech- RS Column 1 nology’’ for equipment License Exceptions Related Controls: N/A Related Definitions: N/A controlled by 6A002 or CIV: N/A 6A003 for RS reasons. Items: The list of items controlled is TSR: N/A CC applies to ‘‘tech- CC Column 1 contained in the ECCN heading. List of Items Controlled nology’’ for equipment Unit: $ value 6D993 Other ``software'' not controlled by controlled by 6A002 for The list of items controlled is contained in 6D003. CC reasons. the ECCN heading. AT applies to entire entry AT Column 1 License Requirements UN applies to ‘‘tech- Rwanda 6D104 ``Software'' specially designed for Reason for Control: AT nology’’ for equipment the ``use'' of equipment controlled by controlled by 6A002 or 6A002, 6A003, 6A007, 6A102, and 6B108, for Control(s) Country Chart 6A003 for UN reasons. MT reasons. License Requirement Notes: See § 743.1 of AT applies to entire entry AT Column 1 License Requirements the EAR for reporting requirements for Reason for Control: MT, AT License Exceptions exports under License Exceptions. CIV: N/A License Exceptions Control(s) Country Chart TSR: N/A CIV: N/A MT applies to entire entry MT Column 1 List of Items Controlled TSR: Yes, except N/A for MT and for exports AT applies to entire entry AT Column 1 Unit: Equipment in number; parts and or reexports to destinations outside of License Exceptions accessories in $ value Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, CIV: N/A Related Controls: N/A TSR: N/A Related Definitions: N/A Italy, Luxembourg, the Netherlands, Items: a. Air Traffic Control (ATC) ‘‘software’’ Portugal, Spain, Sweden, or the United List of Items Controlled application ‘‘programs’’ hosted on general Kingdom of ‘‘technology’’ for the Unit: $ value purpose computers located at Air Traffic ‘‘development’’ of equipment or ‘‘software’’ Related Controls: N/A Control centers, and capable of automatically in 6A001.a.2.a.1, 6A001.a.2.a.2, Related Definitions: N/A 6A001.a.2.a.7, 6A001.a.2.b, 6A001.a.2.c Items: The list of items controlled is handing over primary radar target data (if not contained in the ECCN heading. correlated with secondary surveillance radar and 6A001.a.2.e when specially designed (SSR) data) from the host ATC center to for real time application, 6A002.a.1.c, 6D991 ``Software'' specially designed for another ATC center; 6A008.l.3, 6B008, 6D003.a, or 6D001 when the ``development'', ``production'', or ``use'' specially designed for the ‘‘development’’ E. Technology of equipment controlled by 6A991, 6A996, or ‘‘production’’ of equipment controlled 6A997, or 6A998. 6E001 ``Technology'' according to the by 6A001.a.2.a.1, 6A001.a.2.a.2, License Requirements General Technology Note for the 6A001.a.2.a.7, 6A001.a.2.b, 6A001.a.2.c, Reason for Control: AT ``development'' of equipment, materials or and 6A001.a.2.e as set forth above. ``software'' controlled by 6A (except 6A018, List of Items Controlled Control(s) Country Chart 6A991, 6A992, 6A994, 6A995, 6A996, 6A997 Unit: N/A or 6A998), 6B, (except 6B995) 6C (6C992 or AT applies to entire entry, AT Column 1 Related Controls: See also 6E101, 6E201, and 6C994) or 6D (except 6D991, 6D992, or 6E991 except ‘‘software’’ for 6D993). equipment controlled by Related Definitions: N/A 6A991. License Requirements Items: The list of items controlled is AT applies to ‘‘software’’ AT Column 2 Reason for Control: NS, MT, NP, RS, CC, AT, contained in the ECCN heading. for equipment con- UN trolled by 6A991. 6E002 ``Technology'' according to the General Technology Note for the Control(s) Country Chart License Exceptions ``production'' of equipment or materials CIV: N/A controlled by 6A (except 6A018, 6A991, TSR: N/A NS applies to ‘‘tech- NS Column 1 nology’’ for items con- 6A992, 6A994, 6A995, 6A996, 6A997 or List of Items Controlled trolled by 6A001 to 6A998), 6B, (except 6B995), or 6C (6C992 or Unit: $ value 6A008, 6B004 to 6B008, 6C994). Related Controls: N/A 6C002 to 6C005, or License Requirements Related Definitions: N/A 6D001 to 6D003. Items: The list of items controlled is Reason for Control: NS, MT, NP, RS, AT, CC, contained in the ECCN heading. UN

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Control(s) Country Chart Items: a. Acoustics. None. Control(s) Country Chart b. Optical sensors. None. NS applies to ‘‘tech- NS Column 1 c. Cameras. None. MT applies to entire entry MT Column 1 nology’’ for equipment d. Optics, ‘‘technology’’, as follows: AT applies to entire entry AT Column 1 controlled by 6A001 to d.1. Optical surface coating and treatment License Exceptions 6A008, 6B004 to 6B008, ‘‘technology’’ ‘‘required’’ to achieve or 6C002 to 6C005. uniformity of 99.5% or better for optical CIV: N/A MT applies to ‘‘tech- MT Column 1 coatings 500 mm or more in diameter or TSR: N/A nology’’ for equipment major axis length and with a total loss List of Items Controlled controlled by 6A002, (absorption and scatter) of less than 5 x 10¥3; Unit: N/A 6A007, 6A008, 6A102, N.B.: See also 2E003.f. Related Controls: N/A 6A107, 6A108, 6B008, d.2. Optical fabrication ‘‘technology’’ using Related Definitions: N/A or 6B108 for MT rea- single point diamond turning techniques to Items: The list of items controlled is sons. produce surface finish accuracies of better contained in the ECCN heading. NP applies to ‘‘tech- NP Column 1 than 10 nm rms on non-planar surfaces nology’’ for equipment exceeding 0.5 m2; 6E201 ``Technology'' according to the controlled by 6A003, e. Lasers. ‘‘Technology’’ ‘‘required’’ for the General Technology Note for the ``use'' of 6A005, 6A202, 6A203, ‘‘development’’, ‘‘production’’ or ‘‘use’’ of equipment controlled by 6A003.a.2, 6A205, 6A225 or 6A226 specially designed diagnostic instruments or 6A003.a.3, 6A003.a.4, 6A005.a.1.c, for NP reasons. targets in test facilities for ‘‘SHPL’’ testing or 6A005.a.2.a, 6A005.c.1.b, 6A005.c.2.c.2, RS applies to ‘‘tech- RS Column 1 testing or evaluation of materials irradiated 6A005.c.2.d.2.b, 6A202, 6A203, 6A205, nology’’ for equipment by ‘‘SHPL’’ beams; 6A225 or 6A226. controlled by 6A002 or f. Magnetometers. ‘‘Technology’’ 6A003 for RS reasons. License Requirements ‘‘required’’ for the ‘‘development’’ or Reason for Control: NP, AT CC applies to ‘‘tech- CC Column 1 ‘‘production’’ of fluxgate ‘‘magnetometers’’ or nology’’ for equipment fluxgate ‘‘magnetometer’’ systems, having controlled by 6A002 for Control(s) Country Chart any of the following: CC reasons. f.1. A ‘‘noise level’’ of less than 0.05 nT AT applies to entire entry AT Column 1 NP applies to entire entry NP Column 1 rms per square root Hz at frequencies of less UN applies to ‘‘tech- Rwanda AT applies to entire entry AT Column 1 nology’’ for equipment than 1 Hz; or 3 License Exceptions controlled by 6A002 or f.2. A ‘‘noise level’’ of less than 1 x 10¥ CIV: N/A 6A003 for UN reasons. nT rms per square root Hz at frequencies of 1 Hz or more. TSR: N/A License Requirement Notes: See § 743.1 of List of Items Controlled the EAR for reporting requirements for 6E101 ``Technology'' according to the exports under License Exceptions. General Technology Note for the ``use'' of Unit: N/A Related Controls: N/A License Exceptions equipment or ``software'' controlled by 6A002, 6A007.b and .c, 6A008, 6A102, Related Definitions: This entry only controls CIV: N/A 6A107, 6A108, 6B108, 6D102 or 6D103. ‘‘technology’’ for items in 6A005.a.2.a with TSR: Yes, except N/A for MT and for exports an output power >40 W, 6A005.a.6 argon or reexports to destinations outside of License Requirements ‘‘lasers’’ only, 6A005.c.1.b with an output Austria, Belgium, Canada, Denmark, Finland, Reason for Control: MT, AT power >30 W, 6A005.c.2.c.2.a with an France, Germany, Greece, Ireland, Italy, output power >40 W, 6A005.c.2.c.2.b with Luxembourg, the Netherlands, Portugal, Control(s) Country Chart an output power >40 W, and Spain, Sweden, or the United Kingdom of 6A005.c.2.d.2.b with an output power >40 ‘‘technology’’ for the ‘‘development’’ of MT applies to entire entry MT Column 1 W. equipment in 6A001.a.2.a.1, 6A001.a.2.a.2, AT applies to entire entry AT Column 1 Items: The list of items controlled is 6A001.a.2.a.7, 6A001.a.2.b, 6A001.a.2.c and contained in the ECCN heading. 6A001.a.2.e when specially designed for real License Exceptions time application, 6A002.a.1.c, 6A008.l.3, or CIV: N/A 6E991 ``Technology'' for the 6B008. TSR: N/A ``development'', ``production'' or ``use'' List of Items Controlled List of Items Controlled equipment controlled by 6A991, 6A996, Unit: N/A Unit: N/A 6A997, or 6A998. Related Controls: See also 6E992 Related Controls: N/A License Requirements Related Definitions: N/A Related Definitions: (1) This entry only Reason for Control: AT Items: The list of items controlled is controls ‘‘technology’’ for equipment contained in the ECCN heading. controlled by 6A008 when it is designed Control(s) Country Chart for airborne applications and is usable in 6E003 Other ``technology'', as follows (see ‘‘missiles’’. (2) This entry only controls AT applies to entire entry AT Column 1 List of Items Controlled). ‘‘technology’’ for items in 6A002.a.1, a.3, except ‘‘technology’’ for License Requirements and e that are specially designed or rated equipment controlled by Reason for Control: NS, AT as electromagnetic (including ‘‘laser’’) and 6A991. ionized-particle radiation resistant. (3) This AT applies to ‘‘tech- AT Column 2 Control(s) Country Chart entry only controls ‘‘technology’’ for items nology’’ for equipment in 6A007.b and .c when the accuracies in controlled by 6A991. 6A007.b.1 and b.2 are met or exceeded. NS applies to entire entry NS Column 1 License Exceptions AT applies to entire entry AT Column 1 Items: The list of items controlled is contained in the ECCN heading. CIV: N/A License Exceptions TSR: N/A CIV: N/A 6E102 ``Technology'' according to the List of Items Controlled General Technology Note for the ``use'' of TSR: Yes Unit: N/A List of Items Controlled ``software'' controlled by 6D001 and 6D002, for MT reasons. Related Controls: N/A Unit: N/A Related Definitions: N/A Related Controls: See also 6E993 License Requirements Items: The list of items controlled is Related Definitions: N/A Reason for Control: MT, AT contained in the ECCN heading.

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6E992 ``Technology'' for the Control(s) Country Chart Control(s) Country Chart ``development'' or ``production'' of equipment, materials or ``software'' NS applies to entire entry NS Column 1 NS applies to entire entry NS Column 1 controlled by 6A992, 6A994, or 6A995, MT applies to entire entry MT Column 1 MT applies to entire entry MT Column 1 6B995, 6C992, 6C994, or 6D993. AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 License Requirements License Exceptions License Exceptions Reason for Control: AT LVS: N/A LVS: N/A GBS: N/A GBS: N/A Control(s) Country Chart CIV: N/A CIV: N/A List of Items Controlled AT applies to entire entry AT Column 1 List of Items Controlled Unit: $ value Unit: $ value License Exceptions Related Controls: See also 7A101 and 7A994. Related Controls: See also 7A103 and 7A994. Inertial navigation systems and inertial CIV: N/A MT controls do not apply to accelerometers equipment, and specially designed TSR: N/A that are specially designed and developed components therefor specifically designed, List of Items Controlled as Measurement While Drilling (MWD) modified or configured for military use are sensors for use in downhole well service Unit: $ value subject to the export licensing authority of Related Controls: N/A applications. the U.S. Department of State, Office of Related Definitions: N/A Related Definitions: N/A Defense Trade Controls. (See 22 CFR part Items: The list of items controlled is Items: a. A ‘‘bias’’ ‘‘stability’’ of less (better) 121.) contained in the ECCN heading. than 130 micro g with respect to a fixed Related Definitions: N/A calibration value over a period of one year; Items: a. Navigation error (free inertial) 6E993 Other ``technology'', not controlled b. A ‘‘scale factor’’ ‘‘stability’’ of less subsequent to normal alignment of 0.8 by 6E003. (better) than 130 ppm with respect to a fixed nautical mile per hour (50% Circular Error License Requirements calibration value over a period of one year; Probable (CEP)) or less (better); or Reason for Control: AT or b. Specified to function at linear c. Specified to function at linear acceleration levels exceeding 10 g. Control(s) Country Chart acceleration levels exceeding 100 g. Note: The parameters of 7A003.a are applicable with any of the following 7A002 Gyros having any of the following AT applies to entire entry AT Column 1 environmental conditions: characteristics (see List of Items 1. Input random vibration with an overall License Exceptions Controlled), and specially designed magnitude of 7.7 g rms in the first half hour components therefor. CIV: N/A and a total test duration of one and one half TSR: N/A License Requirements hour per axis in each of the three List of Items Controlled Reason for Control: NS, MT, AT perpendicular axes, when the random Unit: N/A vibration meets the following: Related Controls: N/A Control(s) Country Chart a. A constant power spectral density (PSD) Related Definitions: N/A value of 0.04 g2/Hz over a frequency interval Items: a. Optical fabrication technologies for NS applies to entire entry NS Column 1 of 15 to 1,000 Hz; and serially producing optical components at a MT applies to entire entry MT Column 1 b. The PSD attenuates with frequency from rate exceeding 10 m2 of surface area per year AT applies to entire entry AT Column 1 0.04 g2/Hz to 0.01 g2/Hz over a frequency on any single spindle and with: interval from 1,000 to 2,000 Hz; or License Exceptions a.1. An area exceeding 1 m2; and 2. A roll and yaw rate of equal to or more a.2. A surface figure exceeding lambda/10 LVS: N/A than +2.62 radian/s (150 deg/s); or rms at the designed wavelength; GBS: N/A 3. According to national standards b. ‘‘Technology’’ for optical filters with a CIV: N/A equivalent to 1. or 2. of this note. bandwidth equal to or less than 10 nm, a List of Items Controlled Note: 7A003 does not control inertial navigation systems that are certified for use field of view (FOV) exceeding 40° and a Unit: $ value on ‘‘civil aircraft’’ by civil authorities of a resolution exceeding 0.75 line pairs per Related Controls: See also 7A102 and 7A994 ‘‘participating state’’ in Country Group A:1. milliradian; Related Definitions: N/A Items: a. A ‘‘drift rate’’ ‘‘stability’’, when EAR99 Items subject to the EAR that are 7A004 Gyro-astro compasses, and other measured in a 1 g environment over a period not elsewhere specified in this CCL devices which derive position or orientation of three months and with respect to a fixed Category or in any other category in the by means of automatically tracking celestial calibration value, of: CCL are designated by the number EAR99. bodies or satellites, with an azimuth a.1. Less (better) than 0.1° per hour when accuracy of equal to or less (better) than 5 Category 7—Navigation and Avionics specified to function at linear acceleration seconds of arc. levels below 10 g; or A. Systems, Equipment and Components License Requirements a.2. Less (better) than 0.5° per hour when Reason for Control: NS, MT, AT N.B.: For automatic pilots for underwater specified to function at linear acceleration vehicles, see Category 8. For radar, see levels from 10 g to 100 g inclusive; or Control(s) Country Chart Category 6. b. Specified to function at linear Note to Category 7A: For inertial acceleration levels exceeding 100 g. NS applies to entire entry NS Column 1 navigation equipment for ships or MT applies to entire entry MT Column 1 7A003 Inertial navigation systems submersibles see item 9.e on the Wassenaar AT applies to entire entry AT Column 1 Munitions List. (gimballed or strapdown) and inertial equipment designed for ``aircraft'', land License Exceptions 7A001 Accelerometers designed for use in vehicle or ``spacecraft'' for attitude, LVS: N/A inertial navigation or guidance systems and guidance or control, having any of the GBS: N/A having any of the following characteristics following characteristics (see List of Items CIV: N/A (see List of Items Controlled), and specially Controlled), and specially designed List of Items Controlled designed components therefor. components therefor. Unit: $ value License Requirements License Requirements Related Controls: See also 7A104 and 7A994 Reason for Control: NS, MT, AT Reason for Control: NS, MT, AT Related Definitions: N/A

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Items: The list of items controlled is Items: The list of items is included in the Note: 7A103.a does not control equipment contained in the ECCN heading. entry heading. containing accelerometers specially designed and developed as MWD (Measurement While 7A005 Global navigation satellite systems 7A102 All types of gyros, other than those Drilling) sensors for use in down-hole well (i.e. GPS or GLONASS) receiving controlled by 7A002, usable in ``missiles'', services operations. equipment, and specially designed with a rated ``drift rate'' ``stability'' of less components therefor. (These items are than 0.5≥ (1 sigma or rms) per hour in a 1 b. Integrated flight instrument systems, subject to the export licensing authority of g environment and specially designed which include gyrostabilizers or automatic the U.S. Department of State, Office of components therefor. pilots, designed or modified for use in Defense Trade Controls. See 22 CFR part License Requirements ‘‘missiles’’. 121.) Reason for Control: MT, AT 7A104 Gyro-astro compasses and other 7A006 Airborne altimeters operating at devices, other than those controlled by frequencies other than 4.2 to 4.4 GHz Control(s) Country Chart 7A004, which derive position or orientation inclusive, having any of the following by means of automatically tracking celestial characteristics (see List of Items MT applies to entire entry MT Column 1 bodies or satellites and specially designed Controlled). AT applies to entire entry AT Column 1 components therefor. License Requirements License Exceptions License Requirements LVS: N/A Reason for Control: NS, MT, AT Reason for Control: MT, AT GBS: N/A CIV: N/A Control(s) Country Chart Control(s) Country Chart List of Items Controlled S applies to entire entry ... NS Column 1 Unit: $ value MT applies to entire entry MT Column 1 MT applies to entire entry MT Column 1 Related Controls: N/A AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 Related Definitions: (1) Drift rate is defined License Exceptions License Exceptions as the time rate of output deviation from the desired output. It consists of random LVS: N/A LVS: N/A and systematic components and is GBS: N/A GBS: N/A expressed as an equivalent angular CIV: N/A CIV: N/A displacement per unit time with respect to List of Items Controlled List of Items Controlled inertial space. (2) Stability is defined as Unit: $ value standard deviation (1 sigma) of the Unit: $ value Related Controls: See also 7A106, 7A994 and variation of a particular parameter from its Related Controls: This entry controls Category 6 for controls on radar. calibrated value measured under stable specially designed components for gyro- Related Definitions: N/A temperature conditions. This can be astro compasses and other devices Items: a. ‘‘Power management’’; or expressed as a function of time. controlled by 7A004 b. Using phase shift key modulation. Items: The list of items controlled is Related Definitions: N/A contained in the ECCN heading. Items: The list of items controlled is 7A007 Direction finding equipment contained in the ECCN heading. operating at frequencies above 30 MHz and 7A103 Instrumentation, navigation specially designed components therefor. equipment and systems, other than those 7A105 Global Positioning Systems (GPS) (These items are subject to the export controlled by 7A003, and specially designed or similar satellite receivers, other than licensing authority of the U.S. Department components therefor. those controlled by 7A005, and designed or of State, Office of Defense Trade Controls. License Requirements modified for use in ``missiles''. (These items See 22 CFR part 121.) Reason for Control: MT, AT are subject to the export licensing authority of the U.S. Department of State, Office of 7A101 Accelerometers, other than those Defense Trade Controls. See 22 CFR part controlled by 7A001, with a threshold of Control(s) Country Chart 0.05 g or less, or a linearity error within 121.) MT applies to entire entry MT Column 1 0.25% of full scale output, or both, which 7A106 Altimeters, other than those AT applies to entire entry AT Column 1 are designed for use in inertial navigation controlled by 7A006, of radar or laser radar systems or in guidance systems of all types License Exceptions type, designed or modified for use in and specially designed components LVS: N/A ``missiles''. (These items are subject to the therefor. GBS: N/A export licensing authority of the U.S. License Requirements CIV: N/A Department of State, Office of Defense Trade Controls. See 22 CFR part 121.) Reason for Control: MT, AT List of Items Controlled Unit: $ value 7A115 Passive sensors for determining Control(s) Country Chart Related Controls: (1) Items described in bearing to specific electromagnetic source 7A103.b are subject to the export licensing (direction finding equipment) or terrain MT applies to entire entry MT Column 1 authority of the U.S. Department of State, characteristics, designed or modified for AT applies to entire entry AT Column 1 Office of Defense Trade Controls (See 22 use in ``missiles''. (These items are subject License Exceptions CFR part 121). (2) Inertial navigation to the export licensing authority of the U.S. systems and inertial equipment, and Department of State, Office of Defense LVS: N/A specially designed components therefor Trade Controls. See 22 CFR part 121.) GBS: N/A specifically designed, modified or CIV: N/A 7A116 Flight control systems (hydraulic, configured for military use are subject to List of Items Controlled the export licensing authority of the U.S. mechanical, electro-optical, or electro- Unit: $ value Department of State, Office of Defense mechanical flight control systems Related Controls: This entry does not control Trade Controls. (See 22 CFR part 121.) (including fly-by-wire systems) and attitude accelerometers which are specially Related Definitions: N/A control equipment) designed or modified designed and developed as MWD Items: a. Inertial or other equipment using for ``missiles''. (These items are subject to (Measurement While Drilling) sensors for accelerometers or gyros controlled by 7A001, the export licensing authority of the U.S. use in downhole well service operations. 7A002, 7A101 or 7A102 and systems Department of State, Office of Defense Related Definitions: N/A incorporating such equipment; Trade Controls. See 22 CFR part 121.)

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7A117 ``Guidance sets'' capable of License Exceptions Control(s) Country Chart achieving system accuracy of 3.33% or less LVS: N/A of the range (e.g., a ``CEP'' of 10 km or less GBS: N/A NS applies to entire entry NS Column 1 at a range of 300 km). (These items are CIV: N/A MT applies to entire entry MT Column 1 subject to the export licensing authority of AT applies to entire entry AT Column 1 the U.S. Department of State, Office of List of Items Controlled Defense Trade Controls. See 22 CFR part Unit: $ value License Exceptions 121.) Related Controls: (1) See also 7B102 and LVS: N/A 7A994 Other navigation direction finding 7B994. (2) This entry does not control test, GBS: N/A equipment, airborne communication calibration or alignment equipment for CIV: N/A equipment, all aircraft inertial navigation Maintenance level I. List of Items Controlled systems not controlled under 7A003 or Related Definition: (1) Maintenance Level I: Unit: $ value 7A103, and other avionic equipment, The failure of an inertial navigation unit is Related Controls: (1) See also 7B103 and including parts and components, n.e.s. detected on the aircraft by indications from 7B994. 2.) This entry includes: inertial the Control and Display Unit (CDU) or by License Requirements measurement unit tester (IMU module); the status message from the corresponding IMU platform tester; IMU stable element Reason for Control: AT sub-system. By following the handling fixture; IMU platform balance manufacturer’s manual, the cause of the fixture; gyro tuning test stations; gyro Control(s) Country Chart failure may be localized at the level of the dynamic balance stations; gyro run-in/ AT applies to entire entry AT Column 1 malfunctioning line replaceable unit motor test stations; gyro evacuation and fill (LRU). The operator then removes the LRU stations; centrifuge fixtures for gyro License Exceptions and replaces it with a spare. (2) bearings; accelerometer axis align station; LVS: N/A Maintenance Level II: The defective LRU is and accelerometer test station GBS: N/A sent to the maintenance workshop (the Related Definitions: N/A CIV: N/A manufacturer’s or that of the operator Items: The list of items controlled is List of Items Controlled responsible for level II maintenance). At contained in the ECCN heading the maintenance workshop, the Unit: $ value 7B102 Equipment, as follows (see List of Related Controls: (1) Global Positioning malfunctioning LRU is tested by various Items Controlled), other than those Satellite receivers having the following appropriate means to verify and localize controlled by 7B002, specially designed to characteristics are subject to the export the defective shop replaceable assembly characterize mirrors, for laser gyro licensing authority of the U.S. Department (SRA) module responsible for the failure. equipment. of State, Office of Defense Trade Controls This SRA is removed and replaced by an (22 CFR part 121): (a) Designed for operative spare. The defective SRA (or License Requirements encryption or decryption (e.g., Y-code) of possibly the complete LRU) is then Reason for Control: MT, AT GPS precise positioning service (PPS) shipped to the manufacturer. Maintenance signal; (b) Designed for producing Level II does not include the removal of Control(s) Country Chart navigation results above 60,000 feet controlled accelerometers or gyro sensors altitude and at 1,000 knots velocity or from the SRA. MT applies to entire entry MT Column 1 greater; (c) Specifically designed or Items: The list of items controlled is AT applies to entire entry AT Column 1 modified for use with a null-steering contained in the ECCN heading. antenna or including a null-steering License Exceptions antenna designed to reduce or avoid 7B002 Equipment, as follows (see List of LVS: N/A jamming signals; or (d) Designed or Items Controlled), specially designed to GBS: N/A modified for use with unmanned air characterize mirrors for ring ``laser'' gyros. CIV: N/A vehicle systems capable of delivering at List of Items Controlled License Requirements least a 500 kg payload to a range of at least Unit: $ value 300 km. (GPS receivers designed or Reason for Control: NS, MT, AT Related Controls: N/A modified for use with military unmanned Related Definitions: N/A air vehicle systems with less capability are Control(s) Country Chart Items: a. Scatterometers having a considered to be specially designed, measurement accuracy of 10 ppm or less NS applies to entire entry NS Column 1 modified or configured for military use are (better). controlled by 22 CFR part 121. (2) This MT applies to entire entry MT Column 1 b. Reflectometers having a measurement entry controls direction finding equipment AT applies to entire entry AT Column 1 accuracy of 50 ppm or less (better). that is not subject to the export licensing License Exceptions c. Prolifometers having a measurement authority of the U.S. Department of State, accuracy of 0.5nm (5 angstrom) or less Office of Defense Trade Controls (22 CFR LVS: N/A (better). part 121). GBS: N/A Related Definitions: N/A CIV: N/A 7B103 Specially designed ``production Items: The list of items controlled is List of Items Controlled facilities'' for equipment controlled by contained in the ECCN heading. Unit: $ value 7A117. (These items are subject to the export licensing authority of the U.S. B. Test, Inspection and Production Related Controls: See also 7B102 and 7B994 Department of State, Office of Defense Equipment Related Definitions: N/A Items: a. Scatterometers having a Trade Controls. See 22 CFR part 121.) 7B001 Test, calibration or alignment measurement accuracy of 10 ppm or less 7B994 Other equipment for the test, equipment specially designed for (better); inspection, or ``production'' of navigation equipment controlled by 7A (except 7A994). b. Profilometers having a measurement and avionics equipment. License Requirements accuracy of 0.5 nm (5 angstrom) or less (better). License Requirements Reason for Control: NS, MT, AT Reason for Control: AT 7B003 Equipment specially designed for Control(s) Country Chart the ``production'' of equipment controlled Control(s) Country Chart by 7A (except 7A994). NS applies to entire entry NS Column 1 AT applies to entire entry AT Column 1 MT applies to entire entry MT Column 1 License Requirements AT applies to entire entry AT Column 1 Reason for Control: NS, MT, AT License Exceptions

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LVS: N/A CIV: N/A 7D101 ``Software'' specially designed for GBS: N/A TSR: N/A the ``use'' of equipment controlled by 7A001 CIV: N/A List of Items Controlled to 7A006, 7A101 to 7A106, 7A115, 7B001, 7B002, 7B003, 7B102 or 7B103. List of Items Controlled Unit: $ value Unit: $ value Related Controls: (1) See also 7D102 and License Requirements Related Controls: N/A 7D994. (2) This entry does not control Reason for Control: MT, AT Related Definitions: N/A ‘‘source code’’ for the ‘‘use’’ of gimballed Items: The list of items controlled is AHRS Control(s) Country Chart contained in the ECCN heading Related Definition: AHRS generally differ from inertial navigation systems (INS) in C. Materials [Reserved] MT applies to entire entry MT Column 1 that an AHRS provides attitude and AT applies to entire entry AT Column 1 D. Software heading information and normally does not provide the acceleration, velocity and License Exceptions 7D001 ``Software'' specially designed or position information associated with an CIV: N/A modified for the ``development'' or INS TSR: N/A ``production'' of equipment controlled by 7A Items: The list of items controlled is List of Items Controlled (except 7A994) or 7B (except 7B994). contained in the ECCN heading Unit: $ value License Requirements Related Controls: (1) The ‘‘software’’ related 7D003 Other ``software'', as follows (see to 7A003.b, 7A005, 7A103.b, 7A105, Reason for Control: NS, MT, RS, AT List of Items Controlled). 7A106, 7A115, 7A116, 7A117, or 7B103 are Control(s) Country Chart License Requirements subject to the export licensing authority of Reason for Control: NS, MT, AT the U.S. Department of State, Office of NS applies to ‘‘software’’ NS Column 1 Defense Trade Controls. (See 22 CFR part for equipment con- Control(s) Country Chart 121.) (2) ‘‘Software’’ for inertial navigation trolled by 7A001 to systems and inertial equipment, and 7A004, 7A006, 7B001, NS applies to entire entry NS Column 1 specially designed components therefor, 7B002 or 7B003. MT applies to entire entry MT Column 1 not designed for use on civil aircraft by MT applies to entire entry MT Column 1 AT applies to entire entry AT Column 1 civil aviation authorities of a country listed RS applies to ‘‘software’’ in Country Group A:1 is subject to the List of Items Controlled for inertial navigation export licensing authority of the U.S. systems inertial equip- Unit: $ value Department of State, Office of Defense ment, and specially de- Related Controls: See also 7D103 and 7D994 Trade Controls. (See 22 CFR part 121.) signed components Related Definitions: N/A Related Definitions: N/A therefor, for ‘‘civil air- Items: a. ‘‘Software’’ specially designed or Items: The list of items controlled is craft’’ DRS Column 1. modified to improve the operational contained in the ECCN heading AT applies to entire entry AT Column 1 performance or reduce the navigational error of systems to the levels controlled by 7A003 7D102 Integration ``software'' for the License Exceptions or 7A004; equipment controlled by 7A003 or 7A103. CIV: N/A b. ‘‘Source code’’ for hybrid integrated License Requirements TSR: N/A systems that improves the operational Reason for Control: MT, AT List of Items Controlled performance or reduces the navigational error of systems to the level controlled by 7A003 Unit: $ value Control(s) Country Chart Related Controls: (1) See also 7D101 and by continuously combining inertial data with 7D994. (2) The ‘‘software’’ related to any of the following navigation data: b.1. Doppler radar velocity; MT applies to entire entry MT Column 1 7A003.b, 7A005, 7A007, 7A103.b, 7A105, AT applies to entire entry AT Column 1 7A106, 7A115, 7A116, 7A117, or 7B103 are b.2. Global navigation satellite systems subject to the export licensing authority of (i.e., GPS or GLONASS) reference data; or License Exceptions the U.S. Department of State, Office of b.3. Terrain data from data bases; CIV: N/A Defense Trade Controls. (See 22 CFR part c. ‘‘Source code’’ for integrated avionics or TSR: N/A mission systems that combine sensor data 121.) (3) ‘‘Software’’ for inertial navigation List of Items Controlled systems and inertial equipment, and and employ ‘‘expert systems’’; d. ‘‘Source code’’ for the ‘‘development’’ of Unit: $ value specially designed components therefor, Related Controls: The ‘‘software’’ related to not for use on civil aircraft are subject to any of the following: 7A003.b or 7A103.b are subject to the the export licensing authority of the U.S. d.1. Digital flight management systems for export licensing authority of the U.S. Department of State, Office of Defense ‘‘total control of flight’’; Department of State, Office of Defense Trade Controls. (See 22 CFR part 121.) d.2. Integrated propulsion and flight Trade Controls. (See 22 CFR part 121.) Related Definitions: N/A control systems; Related Definitions: N/A Items: The list of items controlled is d.3. Fly-by-wire or fly-by-light control Items: The list of items controlled is contained in the ECCN heading systems; d.4. Fault-tolerant or self-reconfiguring contained in the ECCN heading 7D002 ``Source code'' for the ``use'' of any ‘‘active flight control systems’’; 7D103 ``Software'' specially designed for inertial navigation equipment or Attitude d.5. Airborne automatic direction finding modelling or simulation of the ``guidance and Heading Reference Systems (AHRS) equipment; sets'' controlled by 7A117 or for their (except gimballed AHRS) including inertial d.6. Air data systems based on surface design integration with ``missiles''. (This equipment not controlled by 7A003 or static data; or entry is subject to the export licensing 7A004. d.7. Raster-type head-up displays or three dimensional displays; authority of the U.S. Department of State, License Requirements e. Computer-aided-design (CAD) Office of Defense Trade Controls. See 22 Reason for Control: NS, MT, AT ‘‘software’’ specially designed for the CFR part 121.) ‘‘development’’ of ‘‘active flight control Control(s) Country Chart 7D994 ``Software'', n.e.s., for the systems’’, helicopter multi-axis fly-by-wire or ``development'', ``production'', or ``use'' of fly-by-light controllers or helicopter NS applies to entire entry NS Column 1 navigation, airborne communication and ‘‘circulation controlled anti-torque or other avionics. MT applies to entire entry MT Column 1 circulation-controlled direction control AT applies to entire entry AT Column 1 systems’’ whose ‘‘technology’’ is controlled License Requirements License Exceptions by 7E004.b, 7E004.c.1 or 7E004.c.2. Reason for Control: AT

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Control(s) Country Chart Control(s) Country Chart Related Controls: See also 7E104 and 7E994 Related Definitions: N/A AT applies to entire entry AT Column 1 RS applies to ‘‘tech- RS Column 1 Items: a. ‘‘Technology’’ for the nology’’ for inertial ‘‘development’’ or ‘‘production’’ of: License Exceptions navigation systems, in- a.1. Airborne automatic direction finding CIV: N/A ertial equipment and equipment operating at frequencies TSR: N/A specially designed com- exceeding 5 MHz; List of Items Controlled ponents therefor, for a.2. Air data systems based on surface Unit: $ value civil aircraft. static data only, i.e., that dispense with Related Controls: N/A AT applies to entire entry AT Column 1 conventional air data probes; Related Definitions: N/A License Exceptions a.3. Raster-type head-up displays or three Items: The list of items controlled is dimensional displays for ‘‘aircraft’’; CIV: N/A a.4. Inertial navigation systems or gyro- contained in the ECCN heading. TSR: N/A astro compasses containing accelerometers or E. Technology List of Items Controlled gyros controlled by 7A001 or 7A002; Unit: N/A a.5. Electric actuators (i.e., 7E001 ``Technology'' according to the Related Controls: (1) See also 7E102 and electromechanical, electrohydrostatic and General Technology Note for the 7E994. (2) The ‘‘technology’’ related to integrated actuator package) specially ``development'' of equipment or ``software'' 7A003.b, 7A005, 7A007, 7A103.b, 7A105, designed for ‘‘primary flight control’’; controlled by 7A (except 7A994), 7B (except 7A106, 7A115, 7A116, 7A117, or 7B103 are a.6. ‘‘Flight control optical sensor array’’ 7B994) or 7D (except 7D994). subject to the export licensing authority of specially designed for implementing ‘‘active License Requirements the U.S. Department of State, Office of flight control systems’’; Defense Trade Controls (see 22 CFR part Reason for Control: MT, NS, RS, AT b. ‘‘Development’’ ‘‘technology’’, as 121) follows, for ‘‘active flight control systems’’ Related Definitions: N/A Control(s) Country Chart (including fly-by-wire or fly-by-light): Items: The list of items controlled is b.1. Configuration design for contained in the ECCN heading NS applies to ‘‘tech- NS Column 1 interconnecting multiple microelectronic nology’’ for items con- 7E003 ``Technology'' according to the processing elements (on-board computers) to trolled by 7A001 to General Technology Note for the repair, achieve ‘‘real time processing’’ for control 7A004, 7A006, 7B001 to refurbishing or overhaul of equipment law implementation; 7B003, 7D001 to 7D003. controlled by 7A001 to 7A004. b.2. Control law compensation for sensor MT applies to entire entry MT Column 1 location or dynamic airframe loads, i.e., License Requirements RS applies to ‘‘tech- RS Column 1 compensation for sensor vibration nology’’ for inertial Reason for Control: NS, MT, AT environment or for variation of sensor navigation systems, in- location from the center of gravity; ertial equipment and Control(s) Country Chart b.3. Electronic management of data specially designed com- redundancy or systems redundancy for fault ponents therefor, for NS applies to entire entry NS Column 1 detection, fault tolerance, fault isolation or civil aircraft. MT applies to entire entry MT Column 1 reconfiguration; AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 Note: 7E004.b.3. does not control License Exceptions ‘‘technology’’ for the design of physical License Exceptions CIV: N/A redundancy. CIV: N/A TSR: N/A b.4. Flight controls that permit inflight TSR: N/A List of Items Controlled reconfiguration of force and moment controls List of Items Controlled Unit: N/A for real time autonomous air vehicle control; Unit: N/A Related Controls: See also 7E994. This entry b.5. Integration of digital flight control, Related Controls: (1) See also 7E101 and does not control maintenance navigation and propulsion control data into 7E994. (2.) The ‘‘technology’’ related to ‘‘technology’’ directly associated with a digital flight management system for ‘‘total 7A003.b, 7A005, 7A007, 7A103.b, 7A105, calibration, removal or replacement of control of flight’’; 7a106, 7A115, 7A116, 7A117, or 7B103 are damaged or unserviceable LRUs and SRAs Note: 7E004.b.5 does not control: subject to the export licensing authority of of a ‘‘civil aircraft’’ as described in 1. ‘‘Development’’ ‘‘technology’’ for the U.S. Department of State, Office of Maintenance Level I or Maintenance Level integration of digital flight control, Defense Trade Control (see 22 CFR part II navigation and propulsion control data into 121) Related Definition: Refer to the Related a digital flight management system for ‘‘flight Related Controls: N/A Definitions for 7B001 path optimization’’; Related Definitions: N/A Items: The list of items controlled is 2. ‘‘Development’’ ‘‘technology’’ for Items: The list of items controlled is contained in the ECCN heading ‘‘aircraft’’ flight instrument systems contained in the ECCN heading integrated solely for VOR, DME, ILS or MLS 7E004 Other ``technology'', as follows (see navigation or approaches. 7E002 ``Technology'' according to the List of Items Controlled). b.6. Full authority digital flight control or General Technology Note for the License Requirements multisensor mission management systems ``production'' of equipment controlled by 7A employing ‘‘expert systems’’; (except 7A994) or 7B (except 7B994). Reason for Control: NS, MT, AT N.B.: For ‘‘technology’’ for Full Authority License Requirements Control(s) Country Chart Digital Engine Control (‘‘FADEC’’), see Reason for Control: NS, MT, RS, AT 9E003.a.9. NS applies to entire entry NS Column 1 c. ‘‘Technology’’ for the ‘‘development’’ of Control(s) Country Chart MT applies to entire entry MT Column 1 helicopter systems, as follows: AT applies to entire entry AT Column 1 c.1. Multi-axis fly-by-wire or fly-by-light NS applies to ‘‘tech- NS Column 1 License Exceptions controllers that combine the functions of at nology’’ for equipment least two of the following into one controlled by 7A001 to CIV: N/A controlling element: 7A004, 7A006 or 7B001 TSR: N/A c.1.a. Collective controls; to 7B003. List of Items Controlled c.1.b. Cyclic controls; MT applies to entire entry MT Column 1 Unit: N/A c.1.c. Yaw controls;

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c.2. ‘‘Circulation-controlled anti-torque or b. Design ‘‘technology’’ for the Items: a. Manned, tethered submersible circulation-controlled directional control configuration of hardened electrical circuits vehicles designed to operate at depths systems’’; and subsystems; exceeding 1,000 m; c.3. Rotor blades incorporating ‘‘variable c. Design ‘‘technology’’ for the b. Manned, untethered submersible geometry airfoils’’ for use in systems using determination of hardening criteria of .a and vehicles, having any of the following: individual blade control. .b of this entry. b.1. Designed to operate autonomously and having a lifting capacity of all the following: 7E101 ``Technology'', other than 7E104 ``Technology'' for the integration of b.1.a. 10% or more of their weight in air; ``technology'' controlled by 7E003, the flight control, guidance, and propulsion and according to the General Technology Note data into a flight management system for b.1.b. 15 kN or more; for the ``use'' of equipment controlled by optimization of rocket system trajectory. b.2. Designed to operate at depths 7A001 to 7A006, 7A101 to 7A106, 7A115 to (This entry is subject to the export licensing exceeding 1,000 m; or 7A117, 7B001, 7B002, 7B003, 7B102, 7B103, authority of the U.S. Department of State, b.3. Having all of the following: 7D101 to 7D103. Office of Defense Trade Controls. See 22 b.3.a. Designed to carry a crew of 4 or License Requirements CFR part 121.) more; b.3.b. Designed to operate autonomously Reason for Control: MT, RS, AT 7E994 ``Technology'', n.e.s., for the for 10 hours or more; ``development'', ``production'', or ``use'' of b.3.c. Having a range of 25 nautical miles Control(s) Country Chart navigation, airborne communication, and or more; and other avionics equipment. b.3.d. Having a length of 21 m or less; MT applies to entire entry MT Column 1 Technical Notes: RS applies to ‘‘use’’ of in- RS Column 1 License Requirements 1. For the purposes of 8A001.b, ‘‘operate ertial navigation sys- Reason for Control: AT autonomously’’ means fully submerged, tems, inertial equipment without snorkel, all systems working and and specially designed Control(s) Country Chart cruising at minimum speed at which the components therefor, for AT applies to entire entry AT Column 1 submersible can safely control its depth civil aircraft. dynamically by using its depth planes only, AT applies to entire entry AT Column 1 License Exceptions with no need for a support vessel or support License Exceptions CIV: N/A base on the surface, sea-bed or shore, and CIV: N/A TSR: N/A containing a propulsion system for submerged or surface use. TSR: N/A List of Items Controlled 2. For the purposes of 8A001.b, ‘‘range’’ List of Items Controlled Unit: N/A means half the maximum distance a Unit: N/A Related Controls: N/A submersible vehicle can cover. Related Controls: 1.) The ‘‘technology’’ Related Definitions: N/A c. Unmanned, tethered submersible related to 7A003.b, 7A005, 7A103.b, Items: The list of items controlled is vehicles designed to operate at depths 7A105, 7A016, 7A115, 7A116, 7A117, contained in the ECCN heading exceeding 1,000 m, having any of the 7B103, or 7D103 are subject to the export EAR99 Items subject to the EAR that are following: licensing authority of the U.S. Department c.1. Designed for self-propelled manoeuvre of State, Office of Defense Trade Controls. not elsewhere specified in this CCL Category or in any other category in the using propulsion motors or thrusters (See 22 CFR part 121.) 2.) ‘‘Technology’’ for controlled by 8A002.a.2; or CCL are designated by the number EAR99. inertial navigation systems and inertial c.2. Having a fiber optic data link; equipment, and specially designed Category 8—Marine d. Unmanned, untethered submersible components therefor, not for use on civil vehicles, having any of the following: aircraft are subject to the export licensing A. Systems, Equipment and Components d.1. Designed for deciding a course relative to any geographical reference without real- authority of the U.S. Department of State, 8A001 Submersible vehicles and surface time human assistance; Office of Defense Trade Controls. (See 22 vessels, as follows (see List of Items d.2. Having an acoustic data or command CFR part 121.) Controlled). Related Definitions: N/A link; or Items: The list of items controlled is License Requirements d.3. Having a fiber optic data or command contained in the ECCN heading Reason for Control: NS, AT link exceeding 1,000 m; e. Ocean salvage systems with a lifting 7E102 ``Technology'' for protection of Control(s) Country Chart capacity exceeding 5 MN for salvaging avionics and electrical subsystems against objects from depths exceeding 250 m and electromagnetic pulse (EMP) and NS applies to entire entry NS Column 2 having any of the following: electromagnetic interference (EMI) hazards, AT applies to entire entry AT Column 1 e.1. Dynamic positioning systems capable from external sources, as follows (see List of position keeping within 20 m of a given of Items Controlled). License Requirement Notes: See § 743.1 of point provided by the navigation system; or the EAR for reporting requirements for e.2. Seafloor navigation and navigation License Requirements exports under License Exceptions. integration systems for depths exceeding Reason for Control: MT, AT License Exceptions 1,000 m with positioning accuracies to LVS: $5000; N/A for 8A001.b and .d within 10 m of a predetermined point; Control(s) Country Chart GBS: N/A f. Surface-effect vehicles (fully skirted CIV: N/A variety) having all of the following MT applies to entire entry MT Column 1 characteristics: List of Items Controlled AT applies to entire entry AT Column 1 f.1. A maximum design speed, fully License Exceptions Unit: Equipment in number; parts and loaded, exceeding 30 knots in a significant accessories in $ value wave height of 1.25 m (Sea State 3) or more; CIV: N/A Related Controls: For the control status of f.2. A cushion pressure exceeding 3,830 Pa; TSR: N/A equipment for submersible vehicles, see: and List of Items Controlled Category 5, Part 2 ‘‘Information Security’’ f.3. A light-ship-to-full-load displacement Unit: N/A for encrypted communication equipment; ratio of less than 0.70; Related Controls: N/A Category 6 for sensors; Categories 7 and 8 g. Surface-effect vehicles (rigid sidewalls) Related Definitions: N/A for navigation equipment; Category 8A for with a maximum design speed, fully loaded, Items: a. Design ‘‘technology’’ for shielding underwater equipment. exceeding 40 knots in a significant wave systems; Related Definitions: N/A height of 3.25 m (Sea State 5) or more;

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h. Hydrofoil vessels with active systems for b.2. Maintaining the position of the vehicle using titanium based alloys or ‘‘fibrous or automatically controlling foil systems, with a within 10 m of a predetermined point in the filamentary’’ ‘‘composite’’ materials in their maximum design speed, fully loaded, of 40 water column; or structural members; knots or more in a significant wave height of b.3. Maintaining the position of the vehicle i. Remotely controlled articulated 3.25 m (Sea State 5) or more; within 10 m while following a cable on or manipulators specially designed or modified i. Small waterplane area vessels having any under the seabed; for use with submersible vehicles, having any of the following: c. Fiber optic hull penetrators or of the following: i.1. A full load displacement exceeding 500 connectors; i.1. Systems which control the manipulator tons with a maximum design speed, fully d. Underwater vision systems, as follows: using the information from sensors which loaded, exceeding 35 knots in a significant d.1. Television systems and television measure the torque or force applied to an wave height of 3.25 m (Sea State 5) or more; cameras, as follows: external object, or tactile sense between the d.1.a. Television systems (comprising or manipulator and an external object; or camera, monitoring and signal transmission i.2. A full load displacement exceeding i.2. Controlled by proportional master- equipment) having a limiting resolution 1,500 tons with a maximum design speed, slave techniques or by using a dedicated when measured in air of more than 800 lines ‘‘stored program controlled’’ computer, and fully loaded, exceeding 25 knots in a and specially designed or modified for having 5 degrees of freedom of movement or significant wave height of 4 m (Sea State 6) remote operation with a submersible vehicle; more; or more. d.1.b. Underwater television cameras Note: Only functions having proportional Technical Note: A small waterplane area having a limiting resolution when measured control using positional feedback or by using vessel is defined by the following formula: in air of more than 1,100 lines; a dedicated ‘‘stored program controlled’’ d.1.c. Low light level television cameras waterplane area at an operational design computer are counted when determining the × specially designed or modified for draught less than 2 (displaced volume at number of degrees of freedom of movement. the operational design draught) 2/3. underwater use containing all of the following: j. Air independent power systems, 8A002 Systems and equipment, as follows d.1.c.1. Image intensifier tubes controlled specially designed for underwater use, as (see List of Items Controlled). by 6A002.a.2.a; and follows: j.1. Brayton or Rankine cycle engine air License Requirements d.1.c.2. More than 150,000 ‘‘active pixels’’ per solid state area array; independent power systems having any of Reason for Control: NS, AT the following: Technical Note: Limiting resolution in television is a measure of horizontal j.1.a. Chemical scrubber or absorber Control(s) Country Chart resolution usually expressed in terms of the systems specially designed to remove carbon dioxide, carbon monoxide and particulates NS applies to entire entry NS Column 2 maximum number of lines per picture height discriminated on a test chart, using IEEE from recirculated engine exhaust; AT applies to entire entry AT Column 1 Standard 208/1960 or any equivalent j.1.b. Systems specially designed to use a License Requirement Notes: See § 743.1 of standard. monoatomic gas; j.1.c. Devices or enclosures specially the EAR for reporting requirements for d.2. Systems, specially designed or exports under License Exceptions. designed for underwater noise reduction in modified for remote operation with an frequencies below 10 kHz, or special License Exceptions underwater vehicle, employing techniques to mounting devices for shock mitigation; or LVS: $5000; N/A for 8A002.o.3.b minimize the effects of back scatter, j.1.d. Systems specially designed: GBS: Yes for 8A002.e.2 and manipulators for including range-gated illuminators or ‘‘laser’’ j.1.d.1. To pressurize the products of systems; civil end-uses (e.g., underwater oil, gas or reaction or for fuel reformation; e. Photographic still cameras specially mining operations) controlled by 8A002.i.2 j.1.d.2. To store the products of the designed or modified for underwater use and having 5 degrees of freedom of reaction; and below 150 m having a film format of 35 mm movement j.1.d.3. To discharge the products of the or larger, and having any of the following: CIV: Yes for 8A002.e.2 and manipulators for reaction against a pressure of 100 kPa or e.1. Annotation of the film with data more; civil end-uses (e.g., underwater oil, gas or provided by a source external to the camera; j.2. Diesel cycle engine air independent mining operations) controlled by 8A002.i.2 e.2. Automatic back focal distance systems, having all of the following: and having 5 degrees of freedom of correction; or movement e.3. Automatic compensation control j.2.a. Chemical scrubber or absorber List of Items Controlled specially designed to permit an underwater systems specially designed to remove carbon camera housing to be usable at depths dioxide, carbon monoxide and particulates Unit: Equipment in number from recirculated engine exhaust; Related Controls: See also 8A992 and for exceeding 1,000 m; f. Electronic imaging systems, specially j.2.b. Systems specially designed to use a underwater communications systems, see monoatomic gas; Category 5, Part I—Telecommunications. designed or modified for underwater use, capable of storing digitally more than 50 j.2.c. Devices or enclosures specially Related Definitions: N/A designed for underwater noise reduction in Items: a. Systems and equipment, specially exposed images; g. Light systems, as follows, specially frequencies below 10 kHz or special designed or modified for submersible mounting devices for shock mitigation; and vehicles, designed to operate at depths designed or modified for underwater use: g.1. Stroboscopic light systems capable of j.2.d. Specially designed exhaust systems exceeding 1,000 m, as follows: a light output energy of more than 300 J per that do not exhaust continuously the a.1. Pressure housings or pressure hulls flash and a flash rate of more than 5 flashes products of combustion; with a maximum inside chamber diameter per second; j.3. Fuel cell air independent power exceeding 1.5 m; g.2. Argon arc light systems specially systems with an output exceeding 2 kW a.2. Direct current propulsion motors or designed for use below 1,000 m; having any of the following: thrusters; h. ‘‘Robots’’ specially designed for j.3.a. Devices or enclosures specially a.3. Umbilical cables, and connectors underwater use, controlled by using a designed for underwater noise reduction in therefor, using optical fiber and having dedicated ‘‘stored program controlled’’ frequencies below 10 kHz or special synthetic strength members; computer, having any of the following: mounting devices for shock mitigation; or b. Systems specially designed or modified h.1. Systems that control the ‘‘robot’’ using j.3.b. Systems specially designed: for the automated control of the motion of information from sensors which measure j.3.b.1. To pressurize the products of equipment for submersible vehicles force or torque applied to an external object, reaction or for fuel reformation; controlled by 8A001 using navigation data distance to an external object, or tactile sense j.3.b.2. To store the products of the and having closed loop servo-controls: between the ‘‘robot’’ and an external object; reaction; and b.1. Enabling a vehicle to move within 10 or j.3.b.3. To discharge the products of the m of a predetermined point in the water h.2. The ability to exert a force of 250 N reaction against a pressure of 100 kPa or column; or more or a torque of 250 Nm or more and more;

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j.4. Stirling cycle engine air independent o.3. Noise reduction systems designed for weight of the boiler in pounds equal to or in power systems, having all of the following: use on vessels of 1,000 tons displacement or excess of 0.83; j.4.a. Devices or enclosures specially more, as follows: b.5. Submarine and torpedo nets; and designed for underwater noise reduction in o.3.a. Systems that attenuate underwater b.6. Components, parts, accessories, and frequencies below 10 kHz or special noise at frequencies below 500 Hz and attachments for the above. mounting devices for shock mitigation; and consist of compound acoustic mounts for the j.4.b. Specially designed exhaust systems acoustic isolation of diesel engines, diesel 8A992 Underwater systems or equipment, which discharge the products of combustion generator sets, gas turbines, gas turbine not controlled by 8A002, and specially against a pressure of 100 kPa or more; generator sets, propulsion motors or designed parts therefor. k. Skirts, seals and fingers, having any of propulsion reduction gears, specially License Requirements designed for sound or vibration isolation, the following: Reason for Control: AT k.1. Designed for cushion pressures of having an intermediate mass exceeding 30% of the equipment to be mounted; 3,830 Pa or more, operating in a significant Control(s) Country Chart wave height of 1.25 m (Sea State 3) or more o.3.b. Active noise reduction or cancellation systems, or magnetic bearings, and specially designed for surface effect AT applies to entire entry AT Column 1 vehicles (fully skirted variety) controlled by specially designed for power transmission 8A001.f; or systems, and incorporating electronic control License Exceptions k.2. Designed for cushion pressures of systems capable of actively reducing LVS: N/A 6,224 Pa or more, operating in a significant equipment vibration by the generation of GBS: N/A wave height of 3.25 m (Sea State 5) or more anti-noise or anti-vibration signals directly to CIV: N/A and specially designed for surface effect the source; p. Pumpjet propulsion systems having a List of Items Controlled vehicles (rigid sidewalls) controlled by power output exceeding 2.5 MW using Unit: $ value 8A001.g; divergent nozzle and flow conditioning vane Related Controls: N/A l. Lift fans rated at more than 400 kW techniques to improve propulsive efficiency Related Definitions: N/A specially designed for surface effect vehicles or reduce propulsion-generated underwater- Items: a. Underwater vision systems, as controlled by 8A001.f or 8A001.g; radiated noise; follows: m. Fully submerged subcavitating or a.1. Television systems (comprising supercavitating hydrofoils specially designed 8A018 Items on the International camera, lights, monitoring and signal for vessels controlled by 8A001.h; Munitions List. transmission equipment) having a limiting n. Active systems specially designed or License Requirements resolution when measured in air of more modified to control automatically the sea- than 500 lines and specially designed or induced motion of vehicles or vessels Reason for Control: NS, AT modified for remote operation with a controlled by 8A001.f, 8A001.g, 8A001.h or submersible vehicle; or 8A001.i; Control(s) Country Chart a.2. Underwater television cameras having o. Propellers, power transmission systems, NS applies to entire entry NS Column 1 a limiting resolution when measured in air of power generation systems and noise AT applies to entire entry AT Column 1 more than 700 lines; reduction systems, as follows: o.1. Water-screw propeller or power License Exceptions Technical Note: Limiting resolution in transmission systems, as follows, specially LVS: $5000 television is a measure of horizontal designed for surface effect vehicles (fully GBS: N/A resolution usually expressed in terms of the skirted or rigid sidewall variety), hydrofoils CIV: N/A maximum number of lines per picture height discriminated on a test chart, using IEEE or small waterplane area vessels controlled List of Items Controlled by 8A001.f, 8A001.g, .8A001.h or 8A001.i: Standard 208/1960 or any equivalent Unit: $ value o.1.a. Supercavitating, super-ventilated, standard. Related Controls: N/A partially-submerged or surface piercing b. Photographic still cameras specially Related Definitions: N/A designed or modified for underwater use, propellers rated at more than 7.5 MW; Items: a. Closed and semi-closed circuit o.1.b. Contrarotating propeller systems (rebreathing) apparatus for diving and having a film formate of 35 mm or larger, and rated at more than 15 MW; underwater swimming, and specially having autofocussing or remote focussing o.1.c. Systems employing pre-swirl or post- designed components for use in the specially designed for underwater use; swirl techniques for smoothing the flow into conversion of open-circuit apparatus to c. Stroboscopic light systems, specially a propeller; military use; designed or modified for underwater use, o.1.d. Light-weight, high capacity (K factor b. Naval equipment, as follows: capable of a light output energy of more than exceeding 300) reduction gearing; b.1. Diesel engines of 1,500 hp and over 300 J per flash; o.1.e. Power transmission shaft systems, with rotary speed of 700 rpm or over d. Other underwater camera equipment, incorporating ‘‘composite’’ material specially designed for submarines; n.e.s.; components, capable of transmitting more b.2. Electric motors specially designed for e. Other submersible systems, n.e.s.; than 1 MW; submarines, i.e., over 1,000 hp, quick f. Boats, n.e.s., including inflatable boats, o.2. Water-screw propeller, power reversing type, liquid cooled, and totally and specially designed components therefor, generation systems or transmission systems enclosed; n.e.s.; designed for use on vessels, as follows: b.3. Nonmagnetic diesel engines, 50 hp and g. Marine engines (both inboard and o.2.a. Controllable-pitch propellers and over, specially designed for military outboard) and submarine engines, n.e.s; and hub assemblies rated at more than 30 MW; purposes. (An engine shall be presumed to be specially designed parts therefor, n.e.s.; o.2.b. Internally liquid-cooled electric specially designed for military purposes if it h. Other self-contained underwater propulsion engines with a power output has nonmagnetic parts other than crankcase, breathing apparatus (scuba gear) and related exceeding 2.5 MW; block, head, pistons, covers, end plates, valve equipment, n.e.s.; o.2.c. ‘‘Superconductive’’ propulsion facings, gaskets, and fuel, lubrication and i. Pressure regulators, air cylinders, hoses, engines, or permanent magnet electric other supply lines, or its nonmagnetic valves and backpacks for the apparatus propulsion engines, with a power output content exceeds 75 percent of total weight.); described in paragraph 8A002.q; exceeding 0.1 MW; b.4. Marine boilers designed to have any of j. Life jackets, inflation cartridges, o.2.d. Power transmission shaft systems, the following characteristics: compasses, wetsuits, masks, fins, weight incorporating ‘‘composite’’ material b.4.a. Heat release rate (at maximum rating) belts, and dive computers; components, capable of transmitting more equal to or in excess of 190,000 BTU per hour k. Underwater lights and propulsion than 2 MW; per cubic foot of furnace volume; or equipment; o.2.e. Ventilated or base-ventilated b.4.b. Ratio of steam generated in pounds l. Air compressors and filtration systems propeller systems rated at more than 2.5 MW; per hour (at maximum rating) to the dry specially designed for filling air cylinders.

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B. Test, Inspection and Production TSR: Yes, except for exports or reexports to Control(s) Country Chart Equipment destinations outside of Austria, Belgium, Canada, Denmark, Finland, France, NS applies to entire entry NS Column 1 8B001 Water tunnels, having a Germany, Greece, Ireland, Italy, AT applies to entire entry AT Column 1 background noise of less than 100 dB Luxembourg, the Netherlands, Portugal, µ License Requirement Notes: See § 743.1 of (reference 1 Pa, 1 Hz) in the frequency Spain, Sweden, or the United Kingdom of the EAR for reporting requirements for range from 0 to 500 Hz, designed for ‘‘software’’ specially designed for the exports under License Exceptions. measuring acoustic fields generated by a ‘‘development’’ or ‘‘production’’ of hydro-flow around propulsion system equipment controlled by 8A001.b, License Exceptions models. 8A001.d, or 8A002.o.3.b CIV: N/A License Requirements List of Items Controlled TSR: Yes, except for exports or reexports to Reason for Control: NS, AT destinations outside of Austria, Belgium, Unit: $ value Canada, Denmark, Finland, France, Related Controls: N/A Control(s) Country Chart Germany, Greece, Ireland, Italy, Related Definitions: N/A Luxembourg, the Netherlands, Portugal, Items: The list of items controlled is Spain, Sweden, or the United Kingdom of NS applies to entire entry NS Column 2 contained in the ECCN heading AT applies to entire entry AT Column 1 ‘‘technology’’ for items controlled by 8A001.b, 8A001.d, or 8A002.o.3.b 8D002 Specific ``software'' specially License Exceptions TSR: Yes designed or modified for the LVS: $3000 ``development'', ``production'', repair, List of Items Controlled GBS: N/A overhaul or refurbishing (re-machining) of Unit: N/A CIV: N/A propellers specially designed for Related Controls: N/A List of Items Controlled underwater noise reduction. Related Definitions: N/A Unit: $ value Items: The list of items controlled is License Requirements Related Controls: N/A contained in the ECCN heading Related Definitions: N/A Reason for Control: NS, AT Items: The list of items controlled is 8E002 Other ``technology'', as follows (see contained in the ECCN heading Control(s) Country Chart List of Items Controlled). License Requirements C. Materials NS applies to entire entry NS Column 1 AT applies to entire entry AT Column 1 Reason for Control: NS, AT 8C001 Syntactic foam designed for underwater use, having all of the following License Requirement Notes: See § 743.1 of Control(s) Country Chart (see List of Items Controlled). the EAR for reporting requirements for License Requirements exports under License Exceptions. NS applies to entire entry NS Column 1 AT applies to entire entry AT Column 1 Reason for Control: NS, AT License Exceptions CIV: N/A License Requirement Notes: See § 743.1 of Control(s) Country Chart TSR: Yes the EAR for reporting requirements for List of Items Controlled exports under License Exceptions. NS applies to entire entry NS Column 2 Unit: $ value License Exceptions AT applies to entire entry AT Column 1 Related Controls: See also 8D992 CIV: N/A License Exceptions Related Definitions: N/A TSR: Yes LVS: N/A Items: The list of items controlled is List of Items Controlled GBS: N/A contained in the ECCN heading Unit: N/A CIV: N/A Related Controls: See also 8E992 8D992 ``Software'' specially designed or Related Definitions: N/A List of Items Controlled modified for the ``development'', Items: a. ‘‘Technology’’ for the Unit: $ value ``production'' or ``use'' of equipment ‘‘development’’, ‘‘production’’, repair, Related Controls: N/A controlled by 8A992. Related Definition: Syntactic foam consists of overhaul or refurbishing (re-machining) of License Requirements propellers specially designed for underwater hollow spheres of plastic or glass noise reduction; embedded in a resin matrix Reason for Control: AT b. ‘‘Technology’’ for the overhaul or Items: a. Designed for marine depths refurbishing of equipment controlled by exceeding 1,000 m; and Control(s) Country Chart 8A001, 8A002.b, 8A002.j, 8A002.o or b. A density less than 561 kg/m3. AT applies to entire entry AT Column 1 8A002.p. D. Software License Exceptions 8E992 ``Technology'' for the 8D001 ``Software'' specially designed or CIV: N/A ``development'', ``production'' or ``use'' of modified for the ``development'', TSR: N/A equipment controlled by 8A992. ``production'' or ``use'' of equipment or List of Items Controlled License Requirements materials controlled by 8A (except 8A018 or Unit: $ value Reason for Control: AT 8A992), 8B or 8C. Related Controls: N/A License Requirements Related Definitions: N/A Control(s) Country Chart Reason for Control: NS, AT Items: The list of items controlled is contained in the ECCN heading AT applies to entire entry AT Column 1 Control(s) Country Chart E. Technology License Exceptions CIV: N/A NS applies to entire entry NS Column 1 8E001 ``Technology'' according to the TSR: N/A AT applies to entire entry AT Column 1 General Technology Note for the List of Items Controlled License Requirement Notes: See § 743.1 of ``development'' or ``production'' of Unit: N/A the EAR for reporting requirements for equipment or materials controlled by 8A Related Controls: N/A exports under License Exceptions. (except 8A018 or 8A992), 8B or 8C. Related Definitions: N/A License Exceptions License Requirements Items: The list of items controlled is CIV: N/A Reason for Control: NS, AT contained in the ECCN heading‘

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EAR99 Items subject to the EAR that are adapted for a ship’s electric power commercial communications satellite not elsewhere specified in this CCL generation or propulsion launch, provided the solid propellant ‘‘kick Category or in any other category in the Items: The list of items controlled is motor’’ being utilized is not specifically CCL are designated by the number EAR99. contained in the ECCN heading designed or modified for military use or capable of being restarted after Category 9—Propulsion Systems, Space 9A003 Specially designed assemblies and achievement of mission orbit (such orbit Vehicles and Related Equipment components, incorporating any of the transfer engines are always controlled on ``technologies'' controlled by 9E003.a, for A. Systems, Equipment and Components USML). Technical data (as defined in gas turbine engine propulsion systems, as 120.10 of the International Traffic in Arms (For propulsion systems designed or rated follows (see List of Items Controlled). Regulations (ITAR)) and defense services against neutron or transient ionizing License Requirements (as defined in 120.9 of the ITAR) related to radiation, see the U.S. Munitions List, 22 the systems, components, or parts on the Reason for Control: NS, AT CFR part 121.) USML are always controlled under the USML, even when the satellite itself is 9A001 Aero gas turbine engines Control(s) Country Chart incorporating any of the ``technologies'' licensed by the Department of Commerce. controlled by 9E003.a, as follows (see List NS applies to entire entry NS Column 2 (4) Military communications satellites or of Items Controlled). AT applies to entire entry AT Column 1 multi-mission satellites, including commercial communications satellites License Requirements License Exceptions having additional non-communication Reason for Control: NS, MT, AT LVS: $5000 mission(s) or payload(s) are under the GBS: N/A jurisdiction of the Department of State. (5) Control(s) Country Chart CIV: N/A Other ‘‘spacecraft’’ not subject to the export List of Items Controlled licensing authority of the U.S. Department NS applies to entire entry NS Column 1 of State, Office of Defense Trade Controls MT applies to only to MT Column 1 Unit: Number under 22 CFR part 121. This entry includes those engines that meet Related Controls: N/A the international space station being the characteristics listed Related Definition: N/A developed, launched and operated under in 9A101. Items: a. Controlled by 9A001; the supervision of the U.S. National AT applies to entire entry AT Column 1 b. Whose design or production origins are Aeronautics and Space Administration. either countries in Country Group D:1 or License Exceptions Exporters requesting a license from the unknown to the manufacturer. Department of Commerce for spacecraft LVS: N/A other than the international space station GBS: N/A 9A004 Space launch vehicles and CIV: N/A ``spacecraft''. or a commercial communications satellite specified in 9A004 must provide a List of Items Controlled License Requirements statement from the Department of State, Unit: Equipment in number; parts and Reason for Control: NS, SI, AT Office of Defense Trade Controls, verifying accessories in $ value that the item intended for export is under Related Controls: See also 9A101 and 9A991 Control(s) Country Chart the licensing jurisdiction of the Related Definitions: N/A Department of Commerce. (6) All other Items: a. Not certified for the specific ‘‘civil NS applies to entire entry NS Column 1 spacecraft, including all other satellites not aircraft’’ for which they are intended; SI applies to commercial communications controlled under 9A004 and components, Note: For the purpose of the ‘‘civil aircraft’’ satellites controlled by 9A004 that in- parts, accessories, attachments, associated certification process, a number of up to 16 clude the individual munitions list sys- equipment, and ground support equipment civil certified engines, assemblies, or tems, components, or parts identified on therefor are subject to the export licensing components including spares is considered the United States Munitions List (USML). authority of the Department of State. (7) appropriate. 22 CFR part 121. See § 742.14 of the EAR Items on the USML that are included in a b. Not certified for civil use by the aviation for additional information. commercial communications satellite to be authorities in Country Group A:1; AT applies to entire entry AT Column 1 exported under a Commerce license must c. Designed to cruise at speeds exceeding License Exceptions be specifically listed on the Commerce Mach 1.2 for more than thirty minutes. license application. Such items when not LVS: N/A included in a specific commercial 9A002 Marine gas turbine engines with an GBS: N/A communications satellite are under the ISO standard continuous power rating of CIV: N/A jurisdiction of the Department of State. (8) 24,245 kW or more and a specific fuel List of Items Controlled Technical data provided to the launch consumption not exceeding 0.219 kg/kWh Unit: Equipment in number; components, provider (form, fit, function, mass, in the power range from 35 to 100%, and parts and accessories in $ value electrical, mechanical, dynamic/ specially designed assemblies and Related Controls: (1) See also 9A104 (2) This environmental, telemetry, safety, facility, components therefor. entry describes space launch vehicles (not launch pad access, and launch parameters) License Requirements including their payloads) and other for commercial communications satellites Reason for Control: NS, AT ‘‘spacecraft’’. (3) Commercial that describe the interfaces for mating of communications satellites are subject to the satellite to the launch vehicle and Control(s) Country Chart Commerce licensing jurisdiction even if parameters for launch (e.g. orbit, timing) of they include the individual munitions list the satellite, are under Commerce NS applies to entire entry NS Column 2 systems, components, or parts identified jurisdiction. Other technical data and all AT applies to entire entry AT Column 1 on the United States Munitions List defense services and technical assistance License Exceptions (USML). In all other cases, these systems, for satellite and/or launch vehicles, components, or parts remain on the USML, including compatibility, integration, or LVS: $5000 except that satellite fuel, ground support processing data are controlled and subject GBS: N/A equipment, test equipment, payload to licensing by the Department of State, in CIV: N/A adapter/interface hardware, replacement accordance with 22 CFR parts 120 through List of Items Controlled parts for the preceding items, and non- 130. Approval for such technical assistance Unit: Number embedded, solid propellant orbit transfer will require a Technical Assistance Related Controls: N/A orbit transfer engines (‘‘kick motors’’) are Agreement (TAA) and may require U.S. Related Definition: The term ‘‘marine gas subject to Commerce licensing jurisdiction Government oversight. (9) Once a satellite turbine engines’’ includes those industrial, (and not controlled on the USML) when is launched, items remaining unlaunched or aero-derivative, gas turbine engines they are to be utilized for the specific are required to be returned immediately to

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the United States. If the satellite launch is licensing authority of the U.S. Department electronic release mechanisms therefor, canceled or unduly delayed, the satellite of State, Office of Defense Trade Controls. except such types as are in normal sporting and all support equipment must be See 22 CFR part 121.) use; returned immediately to the United States. 9A010 Specially designed components, f. Military instrument flight trainers, except (10) Detailed design, development, systems and structures for launch vehicles, for combat simulation; and components, production, or manufacturing data for all launch vehicle propulsion systems or parts, attachments and accessories specially spacecraft, including satellites, regardless ``spacecraft''. (These items are subject to designed for such equipment. of which agency has jurisdiction over the the export licensing authority of the U.S. export, and all systems components, parts, Department of State, Office of Defense 9A018 Equipment on the International accessories, attachments, and associated Trade Controls. See 22 CFR part 121.) Munitions List. equipment (including ground support equipment) specifically designed or 9A011 Ramjet, scramjet or combined cycle License Requirements modified for articles on the USML engines and specially designed Reason for Control: NS, RS, AT (including software source code and components therefor. (These items are subject to the export licensing authority of operating algorithms) are subject to Control(s) Country Chart licensing by the Department of State. This the U.S. Department of State, Office of does not include that level of technical Defense Trade Controls. See 22 CFR part NS applies to entire entry NS Column 1 121.) data (including marketing data) necessary RS applies to 9A018. a RS Column 2 and reasonable for a purchaser to have 9A018 Equipment on the International and b. assurance that a U.S.-built item intended to Munitions List. AT applies to entire entry AT Column 1 operate in space has been designed, manufactured and tested in conformance License Requirements License Exceptions with specified contract requirements (e.g., Reason for Control: NS, RS, AT LVS: $1500 operational performance, reliability, GBS: N/A lifetime, product quality, or delivery Control(s) Country Chart CIV: N/A expectations) as well as data necessary for normal in-orbit satellite operations, to NS applies to entire entry NS Column 1 List of Items Controlled evaluate in-orbit anomalies, and to operate RS applies to 9A018.a and RS Column 2 Unit: Equipment in number; parts and and maintain associated ground station b. accessories in $ value equipment (except encryption hardware). AT applies to entire entry AT Column 1 Related Controls: (1) This entry controls (11) For the control status of products License Exceptions parachute systems designed for use in contained in ‘‘spacecraft’’ payloads, see the LVS: $1500 dropping personnel only. (2) Parachute appropriate categories GBS: N/A systems designed for use in dropping Related Definitions: Transferring registration CIV: N/A military equipment, braking military or operational control to any foreign person aircraft, slowing spacecraft descent, or of any commercial communications List of Items Controlled satellite controlled by this entry must be Unit: Equipment in number; parts and retarding weapons delivery; AND authorized on a license issued by the accessories in $ value Instrument flight trainers for combat Bureau of Export Administration. This Related Controls: (a) Parachute systems simulation are subject to the export requirement applies whether the designed for use in dropping military licensing authority of the U.S. Department commercial communications satellite is equipment, braking military aircraft, of State, Office of Defense Trade Controls. physically located in the United States or slowing spacecraft descent, or retarding (See 22 CFR part 121.) abroad weapons delivery; AND (b) Instrument Related Definitions: N/A Items: The list of items controlled is flight trainers for combat simulation are Items: a. Military trainer aircraft bearing ‘‘T’’ contained in the ECCN heading subject to the export licensing authority of designations: 9A005 Liquid rocket propulsion systems the U.S. Department of State, Office of a.1. Using reciprocating engines; or containing any of the systems or Defense Trade Controls. (See 22 CFR part a.2. Turbo prop engines with less than 600 121, Category VIII.) components controlled by 9A006. (These horse power (h.p.); Related Definition: This entry controls items are subject to the export licensing a.3. T–37 model jet trainer aircraft; and parachute systems designed for use in authority of the U.S. Department of State, a.4. Specially designed component parts. Office of Defense Trade Controls. See 22 dropping personnel only. b. Ground vehicles and components CFR part 121.) Items: a. Military trainer aircraft bearing ‘‘T’’ designations: therefor, specially designed or modified for 9A006 Systems and components specially a.1. Using reciprocating engines; or military purposes. (See part 770 of the EAR, designed for liquid rocket propulsion a.2. Turbo prop engines with less than 600 Interpretation 8) systems. (These items are subject to the horse power (h.p.); c. Pressurized breathing equipment export licensing authority of the U.S. a.3. T–37 model jet trainer aircraft; and specially designed for use in military aircraft Department of State, Office of Defense a.4. Specially designed component parts. and helicopters; Trade Controls. See 22 CFR part 121.) b. Vehicles specially designed or modified d. Military parachutes; 9A007 Solid rocket propulsion systems. for military purposes. (See § 770, e. Military instrument flight trainers, (These items are subject to the export Interpretation 8) except for combat simulation; and c. Pressure refuelers, pressure refueling licensing authority of the U.S. Department components, parts, attachments and equipment, and equipment specially of State, Office of Defense Trade Controls. accessories specially designed for such See 22 CFR part 121.) designed to facilitate operations in confined areas; and ground equipment, n.e.s, equipment. 9A008 Components specially designed for developed specially for military aircraft and solid rocket propulsion systems. (These 9A101 Lightweight turbojet and turbofan helicopters, and specially designed parts and items are subject to the export licensing engines (including turbocompound accessories, n.e.s.; authority of the U.S. Department of State, engines) usable in ``missiles'', other than d. Pressurized breathing equipment Office of Defense Trade Controls. See 22 those controlled by 9A001, as follows (see specially designed for use in military aircraft CFR part 121.) List of Items Controlled). and helicopters; 9A009 Hybrid rocket propulsion systems. e. Military parachutes and complete License Requirements (These items are subject to the export canopies, harnesses, and platforms and Reason for Control: MT, AT

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Control(s) Country Chart Related Controls: Items described in 9A106.a, therefor, made either with organic matrix or .b, and .c are subject to the export licensing metal matrix utilizing fibrous or filamentary MT applies to entire entry MT Column 1 authority of the U.S. Department of State, reinforcements having a specific tensile AT applies to entire entry AT Column 1 Office of Defense Trade Controls (See 22 strength greater than 7.62 µ 104 m and a CFR part 121) 6 License Exceptions specific modulus greater than 3.18 x 10 m. Related Definitions: N/A LVS: N/A Items: a. Ablative liners for thrust or License Requirements GBS: N/A combustion chambers; Reason for Control: MT, AT CIV: N/A b. Rocket nozzles; List of Items Controlled c. Thrust vector control sub-systems; Control(s) Country Chart Unit: Equipment in number; parts and Technical Note: Examples of methods of MT applies to entire entry MT Column 1 accessories in $ value achieving thrust vector control controlled by Related Controls: (1) Items controlled in 9A106.c includes: AT applies to entire entry AT Column 1 9A101.b are subject to the export licensing 1. Flexible nozzle; License Exceptions authority of the U.S. Department of State, 2. Fluid or secondary gas injection; LVS: N/A Office of Defense Trade Controls (see 22 3. Movable engine or nozzle; GBS: N/A CFR part 121). (2) Engines designed or 4. Deflection of exhaust gas steam (jet CIV: N/A modified for missiles (except engines for vanes or probes); or non-military unmanned air vehicles 5. Thrust tabs. List of Items Controlled [UAVs] or remotely piloted vehicles d. Liquid and slurry propellant (including Unit: Kilograms [RPVs]), regardless of thrust or specific fuel oxidizers) control systems, and specially Related Controls: (1) See also 1A002, 1C010, consumption, are subject to the export designed components therefor, designed or and 1C210. (2) The only resin impregnated licensing authority of the U.S. Department modified to operate in vibration fiber prepregs controlled by entry 9A110 of State, Office of Defense Trade Controls. environments of more than 10 g rms between are those using resins with a glass (See 22 CFR part 121.) 20 Hz and 2000 Hz. transition temperature (Tg), after cure, Related Definitions: N/A exceeding 418 K (145° C) as determined by Items: a. Engines having both of the following Note: The only servo valves and pumps controlled by 9A106.d, are the following: ASTM D4065 or equivalents. (3) characteristics: ‘‘Composite structures, laminates, and a.1. Maximum thrust value greater than a. Servo valves designed for flow rates of manufactures thereof, specially designed 1000 N (achieved un-installed) excluding 24 liters per minute or greater, at an absolute for use in missile systems are under the civil certified engines with a maximum pressure of 7 Mpa or greater, that have an licensing authority of the Office of Defense thrust value greater than 8,890 N (achieved actuator response time of less than 100 ms; un-installed), and b. Pumps, for liquid propellants, with shaft Trade Controls, U.S. Department of State, a.2. Specific fuel consumption of 0.13 kg/ speeds equal to or greater than 8,000 rpm or except those specially designed for non- N/hr or less (at sea level static and standard with discharge pressures equal to or greater military unmanned air vehicles controlled conditions); or than 7 Mpa. in 9A120 Related Definitions: N/A b. Engines designed or modified for use in 9A107 Solid propellant rocket engines, ‘‘missiles’’. usable in rockets with a range capability of Items: The list of items controlled is contained in the ECCN heading 9A104 Sounding rockets, capable of a 300 Km or greater, other than those range of at least 300 km. (These items are controlled by 9A007, having total impulse 9A111 Pulse jet engines, usable in subject to the export licensing authority of capacity of 0.841 Mns or greater. (These ``missiles'', and specially designed the U.S. Department of State, Office of items are subject to the export licensing components therefor. (These items are Defense Trade Controls. See 22 CFR part authority of the U.S. Department of State, subject to the export licensing authority of 121.) Office of Defense Trade Controls. See 22 the U.S. Department of State, Office of CFR part 121.) 9A105 Liquid propellant rocket engines. Defense Trade Controls. See 22 CFR part (These items are subject to the export 9A108 Solid rocket propulsion 121.) licensing authority of the U.S. Department components, other than those controlled by 9A115 Launch support equipment, of State, Office of Defense Trade Controls. 9A008, usable in rockets with a range designed or modified for ``missiles''. (These See 22 CFR part 121.) capability of 300 Km or greater. (These items are subject to the export licensing items are subject to the export licensing 9A106 Liquid rocket propulsion systems authority of the U.S. Department of State, authority of the U.S. Department of State, or components, other than those controlled Office of Defense Trade Controls. See 22 Office of Defense Trade Controls. See 22 by 9A006, usable in rockets with a range CFR part 121.) CFR part 121.) capability of 30 Km or greater, as follows 9A116 Reentry vehicles, usable in (see List of Items Controlled). 9A109 Hybrid rocket motors, usable in ``missiles'', and equipment designed or rockets with a range capability of 300 Km License Requirements modified therefor. (These items are subject or greater, other than those controlled by to the export licensing authority of the U.S. Reason for Control: MT, AT 9A009, and specially designed components Department of State, Office of Defense therefor. (These items are subject to the Trade Controls. See 22 CFR part 121.) Control(s) Country Chart export licensing authority of the U.S. Department of State, Office of Defense 9A117 Staging mechanisms, separation MT applies to entire entry MT Column 1 Trade Controls. See 22 CFR part 121.) mechanisms, and interstages, usable in AT applies to entire entry AT Column 1 ``missiles''. (These items are subject to the 9A110 Composite structures, laminates License Exceptions export licensing authority of the U.S. and manufactures thereof, other than those Department of State, Office of Defense LVS: N/A controlled by entry 9A010, specially Trade Controls. See 22 CFR part 121.) GBS: N/A designed for use in ``missiles'' or the CIV: N/A subsystems controlled by entries 9A005, 9A118 Devices to regulate combustion List of Items Controlled 9A007, 9A105.a, 9A106 to 9A108, 9A116 or usable in engines which are usable in Unit: Equipment and components in number; 9A119, and resin impregnated fiber rockets with a range capability greater than parts and accessories in $ value prepregs and metal coated fiber preforms 300 Km or

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(These items are subject continuous brake horsepower of 400 BHP CIV: N/A to the export licensing authority of the U.S. (298 kW) or greater (performance based on List of Items Controlled Department of State, Office of Defense SAE J1349 standard conditions of 100 Kpa Unit: Number and 25°) Trade Controls. See 22 CFR part 121.) Related Controls: N/A b. Off highway wheel tractors of carriage 9A120 Non-military unmanned air vehicle capacity 9 mt (20,000 lbs) or more; and parts Related Definitions: N/A systems (UAVs) and remotely piloted and accessories, n.e.s. Items: The List of Items Controlled is vehicles (RPVs) that are capable of a c. On-Highway tractors, with single or contained in the ECCN heading maximum range of at least 300 kilometers tandem rear axles rated for 9 mt per axel (km), regardless of payload. B. Test, Inspection and Production (20,000 lbs.) or greater and specially designed Equipment License Requirements parts. 9B001 Specially designed equipment, Reason for Control: MT, AT 9A991 ``Aircraft'', n.e.s., and gas turbine tooling and fixtures, as follows (see List of engines not controlled by 9A001 or 9A101 Items Controlled), for manufacturing or Control(s) Country Chart and parts and components, n.e.s. measuring gas turbine blades, vanes or tip MT applies to entire entry MT Column 1 License Requirements shroud castings. AT applies to entire entry AT Column 1 Reason for Control: AT, UN License Requirements License Exceptions Control(s) Country Chart Reason for Control: NS, MT, AT LVS: N/A GBS: N/A AT applies to entire entry AT Column 1 Control(s) Country Chart CIV: N/A UN applies to 9A991.a ..... Rwanda NS applies to entire entry NS Column 1 List of Items Controlled License Exceptions MT applies only to equip- MT Column 1 Unit: Equipment in number; parts and LVS: N/A accessories in $ value ment for engines that GBS: N/A meet the characteristics Related Controls: N/A CIV: N/A Related Definitions: N/A described in 9A001. List of Items Controlled Items: The list of items controlled is AT applies to entire entry AT Column 1 contained in the ECCN heading Unit: Number Related Controls: N/A License Requirement Notes: See § 743.1 of 9A980 Nonmilitary mobile crime science Related Definitions: N/A the EAR for reporting requirements for laboratories; and parts and accessories, Items: a. Military aircraft, demilitarized (not exports under License Exceptions. n.e.s. specifically equipped or modified for License Exceptions military operation), as follows: LVS: $5000, except N/A for MT License Requirements a.1. Cargo, ‘‘C–45 through C–118’’ GBS: Yes, except N/A for MT Reason for Control: CC inclusive, and ‘‘C–121,’’ a.2. Trainers, bearing a ‘‘T’’ designation CIV: Yes, except N/A for MT Control(s) Country Chart and using piston engines, List of Items Controlled a.3. Utility, bearing a ‘‘U’’ designation and Unit: $ value CC applies to entire entry CC Column 1 using piston engines, Related Controls: For specially designed License Exceptions a.4. Liaison, bearing an ‘‘L’’ designation, production equipment of systems, sub- and systems and components controlled by LVS: N/A a.5. Observation, bearing an ‘‘O’’ GBS: N/A designation and using piston engines; 9A005 to 9A009, 9A011, 9A101, 9A105 to CIV: N/A b. Civil aircraft; and 9A109, 9A111, and 9A116 to 9A119 usable List of Items Controlled Note: Specify make and model of aircraft in ‘‘missiles’’ see 9B115. See also 9B991 Unit: $ value and type of avionic equipment on aircraft. Related Definitions: N/A Items: a. Directional solidification or single Related Controls: N/A c. Aero gas turbine engines, and specially Related Definitions: N/A designed parts therefor. crystal casting equipment; Items: The list of items controlled is b. Ceramic cores or shells; Note: 9A991.c does not control aero gas contained in the ECCN heading c. Ceramic core manufacturing equipment turbine engines that are destined for use in civil ‘‘aircraft’’ and that have been in use in or tools; 9A990 Diesel engines, n.e.s., and tractors d. Ceramic shell wax pattern preparation and specially designed parts therefor, n.e.s. bona fide civil ‘‘aircraft’’ for more than eight years. equipment. License Requirements d. Aircraft parts and components, n.e.s. Reason for Control: AT 9B002 On-line (real time) control systems, e. Pressurized aircraft breathing instrumentation (including sensors) or equipment, n.e.s.; and specially designed Control(s) Country Chart automated data acquisition and processing parts therefor, n.e.s. equipment, specially designed for the AT applies to entire entry AT Column 1 9A992 Complete canopies, harnesses, and ``development'' of gas turbine engines, except 9A990.a. platforms and electronic release assemblies or components incorporating AT applies to 9A990.a AT Column 2 mechanisms therefor, except such types as ``technologies'' controlled by 9E003.a. only. are in normal sporting use. License Requirements License Exceptions License Requirements Reason for Control: NS, MT, AT

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Control(s) Country Chart Items: The list of items controlled is 9B007 Equipment specially designed for contained in the ECCN heading inspecting the integrity of rocket motors NS applies to entire entry NS Column 1 using non-destructive test (NDT) MT applies only to equip- MT Column 1 9B005 On-line (real time) control systems, techniques other than planar X-ray or basic ment for engines that instrumentation (including sensors) or physical or chemical analysis. automated data acquisition and processing meet the characteristics License Requirements described in 9A001. equipment, specially designed for use with Reason for Control: NS, MT, AT AT applies to entire entry AT Column 1 any of the following wind tunnels or devices (see List of Items Controlled). License Exceptions Control(s) Country Chart License Requirements LVS: $3000, except N/A for MT GBS: Yes, except N/A for MT Reason for Control: NS, MT, AT NS applies to entire entry NS Column 1 CIV: Yes, except N/A for MT MT applies to entire entry MT Column 1 List of Items Controlled Control(s) Country Chart AT applies to entire entry AT Column 1 Unit: $ value NS applies to entire entry NS Column 1 License Exceptions Related Controls: N/A MT applies to entire entry MT Column 1 LVS: N/A Related Definitions: N/A AT applies to entire entry AT Column 1 GSB N/A Items: The list of items controlled is CIV: N/A contained in the ECCN heading License Exceptions List of Items Controlled LVS: N/A 9B003 Equipment specially designed for Unit: Number GBS: N/A the ``production'' or test of gas turbine Related Controls: N/A CIV: N/A brush seals designed to operate at tip Related Definitions: N/A speeds exceeding 335 m/s, and List of Items Controlled Items: The list of items controlled is temperatures in excess of 773 K (500≥C), Unit: $ value contained in the ECCN heading and specially designed components or Related Controls: See also 9B105 accessories therefor. Related Definitions: N/A 9B008 Transducers specially designed for License Requirements Items: a. Wind tunnels designed for speeds the direct measurement of the wall skin friction of the test flow with a stagnation Reason for Control: NS, MT, AT of Mach 1.2 or more, except those specially temperature exceeding 833 K (560 ≥C). designed for educational purposes and Control(s) Country Chart having a test section size (measured laterally) License Requirements of less than 250 mm; Reason for Control: NS, AT NS applies to entire entry NS Column 1 Technical Note: Test section size in MT applies only to equip- MT Column 1 Control(s) Country Chart ment for engines that 9B005.a means the diameter of the circle, or meet the characteristics the side of the square, or the longest side of the rectangle, at the largest test section NS applies to entire entry NS Column 2 described in 9A001. AT applies to entire entry AT Column 1 AT applies to entire entry AT Column 1 location. b. Devices for simulating flow- License Exceptions License Exceptions environments at speeds exceeding Mach 5, LVS: $5000 LVS: $5000, except N/A for MT including hot-shot tunnels, plasma arc GSB N/A GBS: Yes, except N/A for MT tunnels, shock tubes, shock tunnels, gas CIV: N/A CIV: Yes, except N/A for MT tunnels and light gas guns; or List of Items Controlled List of Items Controlled c. Wind tunnels or devices, other than two- Unit: Number Unit: $ value dimensional sections, capable of simulating Related Controls: N/A Related Controls: See also 9B115 Reynolds number flows exceeding 25×106. Related Definitions: N/A Related Definitions: N/A Items: The list of items controlled is 9B006 Acoustic vibration test equipment Items: The list of items controlled is contained in the ECCN heading capable of producing sound pressure levels contained in the ECCN heading of 160 Db or more (referenced to 20 uPa) 9B004 Tools, dies or fixtures for the solid 9B009 Tooling specially designed for with a rated output of 4 kW or more at a test producing turbine engine powder state joining of ``superalloy'', titanium or cell temperature exceeding 1,273 K (1,000 intermetallic airfoil-to-disk combinations metallurgy rotor components capable of ≥C), and specially designed quartz heaters operating at stress levels of 60% of ultimate described in 9E003.a.3 or 9E003.a.6 for gas therefor. turbines. tensile strength (UTS) or more and metal License Requirements temperatures of 873 K (600 ≥C) or more. License Requirements Reason for Control: NS, AT License Requirements Reason for Control: NS, MT, AT Reason for Control: NS, AT Control(s) Country Chart Control(s) Country Chart Control(s) Country Chart NS applies to entire entry NS Column 2 NS applies to entire entry NS Column 1 AT applies to entire entry AT Column 1 MT applies only to equip- MT Column 1 NS applies to entire entry NS Column 2 ment for engines that License Exceptions AT applies to entire entry AT Column 1 meet the characteristics LVS: $3000 License Exceptions described in 9A001. GBS: Yes LVS: $5000 AT applies to entire entry AT Column 1 CIV: Yes GBS: N/A License Exceptions List of Items Controlled CIV: N/A LVS: $3000, except N/A for MT Unit: Number List of Items Controlled GBS: Yes, except N/A for MT Related Controls: See also 9B106. Note that Unit: Equipment in number; parts and CIV: Yes, except N/A for MT some items in 9B006 may also be accessories in $ value List of Items Controlled controlled under 9B106 Related Controls: N/A Unit: Number Related Definitions: N/A Related Definitions: N/A Related Controls: N/A Items: The list of items controlled is Items: The list of items controlled is Related Definitions: N/A contained in the ECCN heading contained in the ECCN heading

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9B105 Wind tunnels for speeds of Mach subject to the export licensing authority of Items: a. Automated equipment using non- 0.9 or more, usable for ``missiles'' and their the U.S. Department of State, Office of mechanical methods for measuring airfoil subsystems. Defense Trade Controls. See 22 CFR part wall thickness; License Requirements 121.) b. Tooling, fixtures or measuring Reason for Control: MT, AT 9B117 Test benches and test stands for equipment for the ‘‘laser’’, water jet or ECM/ solid or liquid propellant rockets or rocket EDM hole drilling processes controlled by Control(s) Country Chart motors, having either of the following 9E003.c; characteristics (see List of Items c. Ceramic core leaching equipment; MT applies to entire entry MT Column 1 Controlled). d. Ceramic shell burn out or firing AT applies to entire entry AT Column 1 License Requirements equipment. License Exceptions Reason for Control: MT, AT C. Materials [Reserved] LVS: N/A GBS: N/A D. Software Control(s) Country Chart CIV: N/A List of Items Controlled 9D001 ``Software'' required for the MT applies to entire entry MT Column 1 ``development'' of equipment or Unit: $ value AT applies to entire entry AT Column 1 ``technology'' controlled by 9A (except Related Controls: See also 9B005 License Exceptions 9A018, 9A990 or 9A991), 9B (except 9B990 Related Definitions: N/A or 9B991) or 9E003. Items: The list of items controlled is LVS: N/A contained in the ECCN heading GBS: N/A License Requirements CIV: N/A Reason for Control: NS, MT, AT 9B106 Environmental chambers and List of Items Controlled anechoic chambers, as follows (see List of Unit: $ value Control(s) Country Chart Items Controlled). Related Controls: See also 9B990 License Requirements Related Definitions: N/A NS applies to ‘‘software’’ NS Column 1 Reason for Control: MT, AT Items: a. The capacity to handle more than for items controlled by 90 Kn of thrust; or 9A001 to 9A003, 9B001 Control(s) Country Chart b. Capable of simultaneously measuring to 9B009, 9E003. the three axial thrust components. MT applies to ‘‘software’’ MT Column 1 MT applies to entire entry MT Column 1 for equipment con- AT applies to entire entry AT Column 1 9B990 Vibration test equipment and trolled by 9A001, specially designed parts and components, 9A101, 9A106, 9A110, License Exceptions n.e.s. 9A120, 9B001, 9B002, LVS: N/A 9B003, 9B004, 9B005, GBS: N/A License Requirements 9B007, 9B105, 9B106, CIV: N/A Reason for Control: AT 9B116, and 9B117 for List of Items Controlled MT reasons. Control(s) Country Chart Unit: $ value AT applies to entire entry AT Column 1 Related Controls: N/A AT applies to entire entry AT Column 1 License Requirement Notes: See § 743.1 of Related Definitions: N/A the EAR for reporting requirements for License Exceptions Items: a. Environmental chambers capable of exports under License Exceptions. simulating the following flight conditions: LVS: N/A License Exceptions a.1. Altitudes of 15,000 m or greater; or GBS: N/A a.2. Temperature of at least 223 K (¥50° CIV: N/A CIV: N/A ° TSR: N/A C) to 398 K (+ 125 C) and vibration List of Items Controlled environments of 10 g rms or greater between Unit: $ value List of Items Controlled 20 Hz and 2,000 Hz and imparting forces of Related Controls: N/A Unit: $ value 5 Kn or greater. Related Definitions: N/A Related Controls: (1) See also 9D101. (2) b. Anechoic chambers capable of Items: The list of items controlled is ‘‘Software’’ ‘‘required’’ for the simulating the following flight conditions: b.1. Altitudes of 15,000 m or greater; or contained in the ECCN heading ‘‘development’’ of items controlled by ° 9A004 is subject to the export licensing b.2. Temperature of at least 223 K (50 C) 9B991 Specially designed equipment, ° authority of the U.S. Department of State, to 398 K (+ 125 C) and acoustic tooling or fixtures, not controlled by 9B001, Office of Defense Trade Controls. (See 22 environments at an overall sound pressure as described in the List of Items Controlled, level of 140 Db or greater (referenced to 20 for manufacturing or measuring gas turbine CFR part 121.) (3) ‘‘Software’’ ‘‘required’’ microPa) or with a rated power output of 4 blades, vanes or tip shroud castings. for the ‘‘development’’ of equipment or kW or greater. ‘‘technology’’ subject to the export License Requirements 9B115 Specially designed ``production licensing authority of the U.S. Department Reason for Control: AT equipment'' for the systems, sub-systems of State, Office of Defense Trade Controls and components controlled by 9A005 to is also subject to the same licensing Control(s) Country Chart 9A009, 9A011, 9A101, 9A105 to 9A109, jurisdiction. (See 22 CFR part 121.) 9A111, 9A116 to 9A119. (These items are AT applies to entire entry AT Column 1 Related Definitions: N/A subject to the export licensing authority of Items: The list of items controlled is the U.S. Department of State, Office of License Exceptions contained in the ECCN heading Defense Trade Controls. See 22 CFR part LVS: N/A 121.) GBS: N/A 9D002 ``Software'' required for the CIV: N/A ``production'' of equipment controlled by 9A 9B116 Specially designed ``production (except 9A018, 9A990 or 9A991) or 9B List of Items Controlled facilities'' for the systems, sub-systems, (except 9B990 or 9B991). and components controlled by 9A004 to Unit: $ value 9A009, 9A011, 9A101, 9A104 to 9A109, Related Controls: N/A License Requirements 9A111, 9A116 to 9A119. (These items are Related Definitions: N/A Reason for Control: NS, MT, AT

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Control(s) Country Chart Department of State, Office of Defense List of Items Controlled Trade Controls. (See 22 CFR part 121.) (3) Unit: $ value NS applies to ‘‘software’’ NS Column 1 ‘‘Software’’ ‘‘required’’ for the ‘‘use’’ of Related Controls: N/A for equipment con- equipment or ‘‘technology’’ subject to the Related Definitions: N/A export licensing authority of the U.S. trolled by 9A001 to Items: The list of items controlled is Department of State, Office of Defense 9A003 or 9B001 to contained in the ECCN heading 9B009. Trade Controls is also subject to the same MT applies to ‘‘software’’ MT Column 1 licensing jurisdiction. (See 22 CFR part 9D101 ``Software'' specially designed for for equipment con- 121.) the ``use'' of goods controlled by 9B105, trolled by 9A001, Related Definitions: N/A 9B106, 9B116 or 9B117. 9A101, 9A106, 9A110, Items: a. ‘‘Software’’ in digital electronic License Requirements 9A120, 9B001, 9B002, controls for propulsion systems, aerospace 9B003, 9B004, 9B005, test facilities or air breathing aero-engine test Reason for Control: MT, AT 9B007 9B105, 9B106, facilities; 9B116, and 9B117 for b. Fault-tolerant ‘‘software’’ used in Control(s) Country Chart MT reasons. ‘‘FADEC’’ systems for propulsion systems AT applies to entire entry AT Column 1 and associated test facilities. MT applies to entire entry MT Column 1 AT applies to entire entry AT Column 1 License Requirement Notes: See § 743.1 of 9D004 Other ``software'', as follows (see the EAR for reporting requirements for List of Items Controlled). License Exceptions exports under License Exceptions. License Requirements CIV: N/A License Exceptions Reason for Control: NS, MT, AT TSR: N/A CIV: N/A List of Items Controlled TSR: N/A Control(s) Country Chart Unit: $ value List of Items Controlled Related Controls: N/A Unit: $ value NS applies to entire entry NS Column 1 Related Definitions: N/A MT applies to entire entry MT Column 1 Related Controls: (1) ‘‘Software’’ ‘‘required’’ Items: The list of items controlled is AT applies to entire entry AT Column 1 for the ‘‘production’’ of items controlled by contained in the ECCN heading 9A004 is subject to the export licensing License Exceptions authority of the U.S. Department of State, CIV: N/A 9D102 ``Software'' specially designed for Office of Defense Trade Controls. (See 22 TSR: N/A the ``use'' of items controlled by 9A101, 9A106, 9A110, and 9A120. CFR part 121.) (2) ‘‘Software’’ ‘‘required’’ List of Items Controlled for the ‘‘production’’ of equipment or License Requirements ‘‘technology’’ subject to the export Unit: $ value licensing authority of the U.S. Department Related Controls: N/A Reason for Control: MT, AT of State, Office of Defense Trade Controls Related Definitions: N/A is also subject to the same licensing Items: a. 2D or 3D viscous ‘‘software’’ Control(s) Country Chart jurisdiction. (See 22 CFR part 121.) validated with wind tunnel or flight test data Related Definitions: N/A required for detailed engine flow modelling; MT applies to entire entry MT Column 1 b. ‘‘Software’’ for testing aero gas turbine Items: The list of items controlled is AT applies to entire entry AT Column 1 engines, assemblies or components, specially contained in the ECCN heading License Exceptions designed to collect, reduce and analyze data 9D003 ``Software'' required for the ``use'' in real time, and capable of feedback control, CIV: N/A of full authority digital electronic engine including the dynamic adjustment of test TSR: N/A controls (FADEC) for propulsion systems articles or test conditions, as the test is in List of Items Controlled controlled by 9A (except 9A018, 9A990 or progress; Unit: $ value 9A991) or equipment controlled by 9B c. ‘‘Software’’ specially designed to control Related Controls: ‘‘Software’’ for items directional solidification or single crystal (except 9B990 or 9B991), as follows (see controlled by 9A115 are subject to the casting; List of Items Controlled). export licensing authority of the U.S. d. ‘‘Software’’ in ‘‘source code’’, ‘‘object License Requirements code’’ or machine code required for the ‘‘use’’ Department of State, Office of Defense Reason for Control: NS, MT, AT of active compensating systems for rotor Trade Controls (see 22 CFR part 121) blade tip clearance control. Related Definitions: N/A Items: The list of items controlled is Control(s) Country Chart Note: 9D004.d does not control ‘‘software’’ contained in the ECCN heading embedded in uncontrolled equipment or NS applies to ‘‘software’’ NS Column 1 required for maintenance activities 9D103 ``Software'' specially designed for for ‘‘use’’ of FADEC for associated with the calibration or repair or equipment controlled by modelling, simulation or design integration updates to the active compensating clearance of ``missiles'', or the subsystems controlled 9A001 to 9A003. control system. MT applies to ‘‘software’’ MT Column 1 by 9A005, 9A007, 9A105.a, 9A106, 9A108, required for the ‘‘use’’ 9D018 ``Software'' for the ``use'' of 9A116 or 9A119. (This entry is subject to the of FADEC for gas tur- equipment controlled by 9A018. export licensing authority of the U.S. Department of State, Office of Defense bine engines controlled License Requirements by 9A101, 9A106, or Trade Controls. See 22 CFR part 121.) 9A110. Reason for Control: NS, RS, AT 9D990 ``Software'', n.e.s., for the AT applies to entire entry AT Column 1 Control(s) Country Chart ``development'' or ``production'' of License Exceptions equipment controlled by 9A990 or 9B990. CIV: Yes, except N/A for MT NS applies to entire entry NS Column 1 License Requirements TSR: Yes, except N/A for MT RS applies to 9A018.a and RS Column 2 Reason for Control: AT List of Items Controlled .b. AT applies to entire entry AT Column 1 Unit: $ value Control(s) Country Chart Related Controls: (1) See also 9D103. (2) License Exceptions ‘‘Software’’ ‘‘required’’ for the ‘‘use’’ of CIV: N/A AT applies to ‘‘software’’ AT Column 1 items controlled by 9A004 is subject to the TSR: Yes for Australia, Japan, New Zealand, for equipment under export licensing authority of the U.S. and NATO only 9A990 except 9A990.a.

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Control(s) Country Chart License Requirement Notes: See § 743.1 of ‘‘software’’ subject to the export licensing the EAR for reporting requirements for authority of the U.S. Department of State, AT applies to ‘‘software’’ AT Column 2 exports under License Exceptions. Office of Defense Trade Controls, is also for equipment under License Exceptions subject to the same licensing jurisdiction. 9A990.a only. CIV: N/A (See 22 CFR part 121) Related Definitions: N/A TSR: N/A License Exceptions Items: The list of items controlled is CIV: N/A List of Items Controlled contained in the ECCN heading TSR: N/A Unit: N/A List of Items Controlled Related Controls: (1) See also 9E101 and 9E003 Other ``technology'', as follows (see 1E002.f (for controls on ‘‘technology’’ for List of Items Controlled). Unit: $ value the repair of controlled structures, Related Controls: N/A License Requirements laminates or materials). (2) The Related Definitions: N/A Reason for Control: NS, SI, AT ‘‘technology’’ required for the Items: The list of items controlled is ‘‘development’’ of equipment controlled by Control(s) Country Chart contained in the ECCN heading 9A004 is subject to the export licensing 9D991 ``Software'', for the ``development'' authority of the U.S. Department of State, NS applies to entire entry NS Column 1 or ``production'' of equipment controlled by Office of Defense Trade Controls. (See 22 SI applies to 9E003.a.1 through a.12 and f. 9A991 or 9B991. CFR part 121.) (3) ‘‘Technology’’, required See § 742.14 of the EAR for additional in- for the ‘‘development’’ of equipment or License Requirements formation. ‘‘software’’ subject to the export licensing AT applies to entire entry AT Column 1 Reason for Control: AT authority of the U.S. Department of State, Office of Defense Trade Controls, is also License Requirement Notes: See § 743.1 of Control(s) Country Chart subject to the same licensing jurisdiction. the EAR for reporting requirements for (See 22 CFR part 121) exports under License Exceptions AT applies to entire entry AT Column 1 Related Definitions: ‘‘Development’’ or License Exceptions License Exceptions ‘‘production’’ ‘‘technology’’ controlled by CIV: N/A 9E for gas turbine engines remains CIV: N/A TSR: N/A controlled when used as ‘‘use’’ List of Items Controlled TSR: N/A ‘‘technology’’ for repair, rebuild and Unit: N/A List of Items Controlled overhaul. Excluded from control are: Related Controls: (1) Hot section technology, drawings or documentation for Unit: $ value ‘‘technology’’ specifically designed, maintenance activities directly associated Related Controls: N/A modified, or equipped for military uses or with calibration, removal or replacement of Related Definitions: N/A purposes, or developed principally with damaged or unserviceable line replaceable Items: The list of items controlled is U.S. Department of Defense funding, is units, including replacement of whole contained in the ECCN heading subject to the licensing authority of the engines or engine modules U.S. Department of State. (2) ‘‘Technology’’ E. Technology Items: The list of items controlled is is subject to the EAR when actually Note: ‘‘Development’’ or ‘‘production’’ contained in the ECCN heading applied to a commercial aircraft engine ‘‘technology’’ controlled by 9E001 to 9E003 9E002 ``Technology'' according to the program. Exporters may seek to establish for gas turbine engines remains controlled commercial application either on a case- when used as ‘‘use’’ ‘‘technology’’ for repair, General Technology Note for the ``production'' of equipment controlled by by-case basis through submission of rebuild and overhaul. Excluded from control documentation demonstrating application are: technical data, drawings or 9A001.c, 9A004 to 9A011 or 9B (except 9B990 or 9B991). to a commercial program in requesting an documentation for maintenance activities export license from the Department directly associated with calibration, removal License Requirements Commerce in respect to a specific export, or replacement of damaged or unserviceable Reason for Control: NS, MT, AT or in the case of use for broad categories line replaceable units, including replacement of aircraft, engines, or components, a of whole engines or engine modules. Control(s) Country Chart commodity jurisdiction determination from the Department of State. 9E001 ``Technology'' according to the NS applies to entire entry NS Column 1 General Technology Note for the Related Definitions: N/A MT applies to ‘‘tech- MT Column 1 Items: a. ‘‘Technology’’ ‘‘required’’ for the ``development'' of equipment or ``software'' nology’’ for equipment controlled by 9A001.c, 9A004 to 9A011, 9B ‘‘development’’, ‘‘production’’, or overhaul of controlled by 9B001, the following commercial aircraft engines, (except 9B990 or 9B991), or 9D (except 9B002, 9B003, 9B004, 9D990 or 9D991). components or systems: 9B005, 9B007, 9B105, a.1. Gas turbine blades, vanes or tip License Requirements 9B106, 9B116, and shrouds made from directionally solidified Reason for Control: NS, MT, AT 9B117 for MT reasons. (DS) or single crystal (SC) alloys having (in AT applies to entire entry AT Column 1 the 001 Miller Index Direction) a stress- Control(s) Country Chart License Requirement Notes: See § 743.1 of rupture life exceeding 400 hours at 1,273 K the EAR for reporting requirements for (1,000° C) at a stress of 200 MPa, based on NS applies to ‘‘tech- NS Column 1 exports under License Exceptions. the average property values; nology’’ for items con- License Exceptions a.2. Multiple domed combustors operating trolled by 9A001.c, at average burner outlet temperatures CIV: N/A 9B001 to 9B009, 9D001 exceeding 1,643 K (1,370° C) or combustors TSR: N/A to 9D004. incorporating thermally decoupled MT applies to ‘‘tech- MT Column 1 List of Items Controlled combustion liners, non-metallic liners or nology’’ for items con- Unit: N/A non-metallic shells; trolled by 9B001, Related Controls: (1) See also 9E102. (2) The a.3. Components manufactured from 9B002, 9B003, 9B004 ‘‘technology’’ required for the organic ‘‘composite’’ materials designed to 9B005, 9B007, 9B105, ‘‘development’’ of equipment controlled by operate above 588 K (315° C), or from metal 9B106, 9B116, 9B117, 9A004 is subject to the export licensing ‘‘matrix’’ ‘‘composite’’, ceramic ‘‘matrix’’, 9D001, 9D002, 9D003, authority of the U.S. Department of State, intermetallic or intermetallic reinforced and 9D004 for MT rea- Office of Defense Trade Controls. (See 22 materials controlled by 1A002 or 1C007; sons. CFR part 121.) (3) ‘‘Technology’’, required a.4. Uncooled turbine blades, vanes, tip- AT applies to entire entry AT Column 1 for the ‘‘development’’ of equipment or shrouds or other components designed to

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Airfoil-to-disk blade combinations e.1. ‘‘Technology’’ for the ‘‘development’’ in the ‘‘development’’, ‘‘production’’, or using solid state joining; or ‘‘production’’ of reciprocating diesel overhaul of hot section parts and components a.7. Gas turbine engine components using engine ground vehicle propulsion systems of civil derivatives of military engines ‘‘diffusion bonding’’ ‘‘technology’’ controlled having all of the following: controlled on the U.S. Munitions List. by 2E003.b; e.1.a. A box volume of 1.2 m3 or less; a.8. Damage tolerant gas turbine engine e.1.b. An overall power output of more 9E018 ``Technology'' for the rotating components using powder than 750 kW based on 80/1269/EEC, ISO ``development'', ``production'', or ``use'' of metallurgy materials controlled by 1C002.b; 2534 or national equivalents; and equipment controlled by 9A018. a.9. Full authority digital electronic engine e.1.c. A power density of more than 700 License Requirements control (FADEC) for gas turbine and kW/m3 of box volume; Reason for Control: NS, RS, AT combined cycle engines and their related Technical Note: Box volume: the product diagnostic components, sensors and specially of three perpendicular dimensions measured designed components; in the following way: Control(s) Country Chart a.10. Adjustable flow path geometry and Length: The length of the crankshaft from NS applies to entire entry NS Column 1 associated control systems for: front flange to flywheel face; a.10.a. Gas generator turbines; RS applies to 9A018.a and RS Column 2 Width: The widest of the following: a.10.b. Fan or power turbines; a. The outside dimension from valve cover .b. a.10.c. Propelling nozzles; to valve cover; AT applies to entire entry AT Column 1 Notes: 1. Adjustable flow path geometry b. The dimensions of the outside edges of License Exceptions and associated control systems do not the cylinder heads; or CIV: N/A include inlet guide vanes, variable pitch fans, c. The diameter of the flywheel housing; variable stators or bleed valves for TSR: Yes for Australia, Japan, New Zealand, Height: The largest of the following: and NATO only compressors. a. The dimension of the crankshaft center- 2. 9E003.a.10 does not control line to the top plane of the valve cover (or List of Items Controlled ‘‘development’’ or ‘‘production’’ cylinder head) plus twice the stroke; or Unit: N/A ‘‘technology’’ for adjustable flow path b. The diameter of the flywheel housing. Related Controls: N/A geometry for reverse thrust. e.2. ‘‘Technology’’ ‘‘required’’ for the Related Definitions: N/A a.11. Rotor blade tip clearance control ‘‘production’’ of specially designed Items: The list of items controlled is systems employing active compensating components, as follows, for high output contained in the ECCN heading casing ‘‘technology’’ limited to a design and diesel engines: 9E101 ``Technology'' according to the development data base; or e.2.a. ‘‘Technology’’ ‘‘required’’ for the General Technology Note for the a.12 Gas bearing for gas turbine engine ‘‘production’’ of engine systems having all of ``development'' or ``production'' of goods rotor assemblies; the following components employing controlled by 9A101, 9A104 to 9A111 or a.13. Wide chord hollow fan blades ceramics materials controlled by 1C007: 9A115 to 9A120. without part-span support; e.2.a.1. Cylinder liners; b. ‘‘Technology’’ ‘‘required’’ for the e.2.a.2. Pistons; License Requirements ‘‘development’’ or ‘‘production’’ of any of the e.2.a.3. Cylinder heads; and Reason for Control: MT, AT following: e.2.a.4. One or more other components b.1. Wind tunnel aero-models equipped (including exhaust ports, turbochargers, Control(s) Country Chart with non-intrusive sensors capable of valve guides, valve assemblies or insulated transmitting data from the sensors to the data fuel injectors); MT applies to entire entry MT Column 1 acquisition system; or e.2.b. ‘‘Technology’’ ‘‘required’’ for the AT applies to entire entry AT Column 1 b.2. ‘‘Composite’’ propeller blades or ‘‘production’’ of turbocharger systems, with propfans capable of absorbing more than single-stage compressors having all of the License Exceptions 2,000 kW at flight speeds exceeding Mach following: CIV: N/A 0.55; e.2.b.1. Operating at pressure ratios of 4:1 TSR: N/A c. ‘‘Technology’’ ‘‘required’’ for the or higher; List of Items Controlled ‘‘development’’ or ‘‘production’’ of gas e.2.b.2. A mass flow in the range from 30 turbine engine components using ‘‘laser’’, Unit: N/A to 130 kg per minute; and Related Controls: ‘‘Technology’’ controlled water jet, ECM or EDM hole drilling e.2.b.3. Variable flow area capability by 9E101 for items in 9A101.b, 9A104, processes to produce holes having any of the within the compressor or turbine sections; 9A105, to 9A109, 9A110 that are specially following sets of characteristics: e.2.c. ‘‘Technology’’ ‘‘required’’ for the designed for use in missile systems and c.1. All of the following: ‘‘production’’ of fuel injection systems with subsystems, 9A111, 9A115, and 9A116 to c.1.a. Depths more than four times their a specially designed multifuel (e.g., diesel or diameter; jet fuel) capability covering a viscosity range 9A120 are subject to the export licensing c.1.b. Diameters less than 0.76 mm; and from diesel fuel (2.5 cSt at 310.8 K (37.8°C)) authority of the U.S. Department of State, c.1.c. Incidence angles equal to or less than down to gasoline fuel (0.5 cSt at 310.8 K Office of Defense Trade Controls (see 22 ° 25 ; or (37.8°C)), having both of the following: CFR part 121) c.2. All of the following: e.2.c.1. Injection amount in excess of 230 Related Definitions: N/A c.2.a. Depths more than five times their mm3 per injection per cylinder; and Items: The list of items controlled is diameter; e.2.c.2. Specially designed electronic contained in the ECCN heading c.2.b. Diameters less than 0.4 mm; and control features for switching governor c.2.c. Incidence angles of more than 25°; 9E102 ``Technology'' according to the characteristics automatically depending on General Technology Note for the ``use'' of Technical Note: For the purposes of fuel property to provide the same torque goods controlled by 9A004 to 9A011, 9A101, 9E003.c, incidence angle is measured from a characteristics by using the appropriate 9A104 to 9A111, 9A115 to 9A120, 9B105, plane tangential to the airfoil surface at the sensors; point where the hole axis enters the airfoil 9B106, 9B115, 9B116, 9B117, 9D101 or e.3. ‘‘Technology’’ ‘‘required’’ for the 9D103. surface. ‘‘development’’ or ‘‘production’’ of high d. ‘‘Technology’’ ‘‘required’’ for the output diesel engines for solid, gas phase or License Requirements ‘‘development’’ or ‘‘production’’ of helicopter liquid film (or combinations thereof) cylinder Reason for Control: MT, AT

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Control(s) Country Chart 9E990 ``Technology'', n.e.s., for the Reason for Control: AT ``development'' or ``production'' or ``use'' of MT applies to entire entry MT Column 1 equipment controlled by 9A990 or 9B990. Control(s) Country Chart AT applies to entire entry AT Column 1 License Requirements AT applies to entire entry AT Column 1 License Exceptions Reason for Control: AT License Exceptions CIV: N/A Control(s) Country Chart TSR: N/A CIV: N/A TSR: N/A List of Items Controlled AT applies to ‘‘tech- AT Column 1 nology’’ for equipment List of Items Controlled Unit: N/A under 9A990 and 9B990 Related Controls: (1) For the purpose of this Unit: $ value except 9A990.a. Related Controls: N/A entry, ‘‘use’’ ‘‘technology’’ is limited to AT applies to ‘‘tech- AT Column 2 Related Definitions: N/A items controlled for MT reasons. (2) nology’’ for equipment ‘‘Technology’’ controlled by 9E102 for under 9A990.a only. Items: The list of items controlled is contained in the ECCN heading items subject to the export licensing License Exceptions jurisdiction of the Department of State in CIV: N/A EAR99 Items subject to the EAR that are 9A004 to 9A011, 9A101.b, 9A104 to TSR: N/A not elsewhere specified in this CCL 9A109, 9A110 that are specially designed List of Items Controlled Category or in any other category in the for use in missile systems and subsystems, CCL are designated by the number EAR99. 9A111, 9A115, 9A116 to 9A120, and Unit: $ value Related Controls: N/A 9D103 are subject to the export licensing Dated: December 23, 1997. Related Definitions: N/A R. Roger Majak, authority of the U.S. Department of State, Items: The list of items controlled is Office of Defense Trade Controls (see 22 contained in the ECCN heading Assistant Secretary for Export CFR part 121) Administration. Related Definitions: N/A 9E991 ``Technology'', for the [FR Doc. 98–1 Filed 1–14–98; 8:45 am] ``development'', ``production'' or ``use'' of Items: The list of items controlled is BILLING CODE 3510±33±P contained in the ECCN heading equipment controlled by 9A991 or 9B991. License Requirements

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DEPARTMENT OF COMMERCE SUPPLEMENTARY INFORMATION: Corporation (NTN). This merchandise is Applicable Statute and Regulations currently classifiable under HTS item International Trade Administration numbers 8482.99.30, 8483.20.40, Unless otherwise indicated, all 8482.20.20, 8483.20.80, 8482.91.00, [A±588±054, A±588±604] citations to the statute are in reference 8484.30.80, 8483.90.20, 8483.90.30, and to the provisions effective January 1, 8483.90.60. These HTS item numbers Tapered Roller Bearings and Parts 1995, the effective date of the and those for the A–588–054 finding are Thereof, Finished and Unfinished, amendments made to the Tariff Act of provided for convenience and Customs From Japan, and Tapered Roller 1930 (the Act) by the Uruguay Round purposes. The written description Bearings, Four Inches or Less in Agreements Act (URAA). In addition, remains dispositive. Outside Diameter, and Components unless otherwise indicated, all citations The A–588–054 reviews cover TRB Thereof, From Japan; Final Results of are to the Department’s regulations, 19 sales by two TRB manufacturers/ Antidumping Duty Administrative CFR part 353 (1997). exporters (Koyo Seiko Ltd. (Koyo) and Reviews Background NSK Ltd. (NSK)), and two resellers/ exporters (Fuji Heavy Industries (Fuji) AGENCY: Import Administration, On August 18, 1976, the Treasury and MC International (MC)). The International Trade Administration, Department published in the Federal reviews of the A–588–604 case cover Department of Commerce. Register (41 FR 34974) the antidumping TRB sales by three manufacturers/ finding on TRBs from Japan, and on ACTION: Notice of Final Results of exporters (Koyo, NSK and NTN October 6, 1987, the Department Administrative Reviews. Corporation (NTN)), and two resellers/ published the antidumping duty order exporters (Fuji and MC). Because Fuji SUMMARY: On September 9, 1997, the on TRBs from Japan (52 FR 37352). On and MC had no shipments in the A– Department of Commerce (the October 1, 1996 (61 FR 51529), the 588–604 review, for the reasons Department) published the preliminary Department published the notice of explained in our notice of preliminary results of the 1995–96 administrative ‘‘Opportunity to Request an results, we have not assigned a rate to reviews of the antidumping duty order Administrative Review’’ for both TRB these firms for these final results (see on tapered roller bearings (TRBs) and cases. The petitioner, the Timken TRB Prelim at 47453). The period of parts thereof, finished and unfinished, Company (Timken), and one respondent review (POR) for both cases is October from Japan (A–588–604), and the requested administrative reviews. We 1, 1995, through September 30, 1996. initiated the A–588–054 and A–588–604 antidumping finding on TRBs, four Duty Absorption inches or less in outside diameter, and administrative reviews for the period components thereof, from Japan (A– October 1, 1995, through September 30, On December 11, 1996, Timken 588–054) (see Tapered Roller Bearings 1996, on November 15, 1996 (61 FR requested that the Department and Parts Thereof, Finished and 58513). On September 9, 1997, we determine, with respect to all Unfinished, from Japan, and Tapered published in the Federal Register the respondents, whether antidumping Roller Bearings, Four Inches or Less in preliminary results of the 1995–96 duties had been absorbed during the Outside Diameter, and Components administrative reviews of the POR. Section 751(a)(4) of the Act Thereof, from Japan; Preliminary antidumping duty order and finding on provides for the Department, if Results of Antidumping Duty TRBs from Japan (see TRB Prelim at requested, to determine during an Administrative Reviews, 62 FR 47452 47542). We held a hearing for the 1995– administrative review initiated two or (September 9, 1997) (TRB Prelim)). The 96 administrative reviews of both the four years after the publication of the review of the A–588–054 finding covers A–588–054 and A–588–604 TRBs cases order, whether antidumping duties have two manufacturers/exporters and two on October 30, 1997. The Department been absorbed by a foreign producer or resellers/exporters of the subject has now completed these reviews in exporter if the subject merchandise is merchandise to the United States during accordance with section 751 of the Act, sold in the United States through an the period October 1, 1995, through as amended. affiliated importer. The Department’s interim regulations do not address this September 30, 1996. The review of the Scope of the Review A–588–604 order covers three provision of the Act. Imports covered by the A–588–054 For transition orders as defined in manufacturers/exporters, two resellers/ finding are sales or entries of TRBs, four section 751(c)(6)(C) of the Act (i.e., exporters, and the period October 1, inches or less in outside diameter when orders in effect as of January 1, 1995), 1995, through September 30, 1996. We assembled, including inner race or cone section 351.213(j)(2) of the Department’s gave interested parties an opportunity to assemblies and outer races or cups, sold new antidumping regulations provide comment on our preliminary results. either as a unit or separately. This that the Department will make a duty- Based upon our analysis of the merchandise is classified under the absorption determination, if requested, comments received we have changed Harmonized Tariff Schedule (HTS) item for any administrative review initiated the results from those presented in our numbers 8482.20.00 and 8482.99.30. in 1996 or 1998. See 62 FR 27394 (May preliminary results of review. Imports covered by the A–588–604 19, 1997). Because the finding and order EFFECTIVE DATE: January 15, 1998. order include TRBs and parts thereof, on TRBs have been in effect since 1976 FOR FURTHER INFORMATION CONTACT: finished and unfinished, which are and 1987, respectively, they are Charles Ranado, Stephanie Arthur, or flange, take-up cartridge, and hanger transition orders in accordance with Valerie Owenby, Office of AD/CVD units incorporating TRBs, and tapered section 751(c)(6)(C) of the Act. The Enforcement III, Office 8, Import roller housings (except pillow blocks) preamble to the new antidumping Administration, International Trade incorporating tapered rollers, with or regulations explains that reviews Administration, U.S. Department of without spindles, whether or not for initiated in 1996 will be considered Commerce, 14th Street and Constitution automotive use. Products subject to the initiated in the second year and reviews Avenue, N.W., Washington, D.C. 20230, A–588–054 finding are not included initiated in 1998 will be considered telephone: (202) 482–3518, 6312, or within the scope of this order, except for initiated in the fourth year (62 FR 0172, respectively. those manufactured by NTN 27317, May 19, 1997). This approach

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00002 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2559 ensures that interested parties will have manufactured sales), we must presume of over 4′′ finished TRBs to over 4′′ the opportunity to request a duty- that duties will be absorbed for those further-manufactured TRBs was flawed absorption determination prior to the sales which were dumped. Our duty- because the division of products subject time for sunset review of the order absorption presumptions can be to the TRB orders does not reflect under section 751(c) of the Act on rebutted with evidence that the commercial reality, but rather arose entries for which the second and fourth unaffiliated purchasers in the United from the manner in which Timken years following an order have already States will pay the ultimately assessed defined merchandise covered by the passed. Since these reviews were duty. After publication of our petitions in the A–588–054 and A–588– initiated in 1996, and a request was preliminary results, we gave interested 604 TRB cases. Koyo further argues, in made for a determination, we are parties the opportunity to submit support of its assertions that the making duty-absorption determinations evidence that the unaffiliated division between the orders is as part of these administrative reviews. purchasers in the United States will pay asymmetrical, that the over 4′′ A–588– As indicated above, the statute the ultimately assessed duties. However, 604 order covers components of TRBs provides for a determination on duty we received no such evidence. Under which are typically further processed absorption if the subject merchandise is these circumstances, we find that into under 4′′ bearings. sold in the United States through an antidumping duties have been absorbed Second, Koyo contends that the affiliated importer. In these cases, NTN, by Koyo, NTN, NSK, and Fuji on the statute does not grant the Department Koyo, NSK, and Fuji sold through percentages of U.S. sales indicated. discretion to decide whether or not to importers that are affiliated within the Specific arguments relating to duty invoke section 772(e)(1) and (e)(2) of the meaning of section 751(a)(4) of the Act. absorption are discussed in the Act. Rather, Koyo argues, the We have determined that duty ‘‘Miscellaneous’’ section below. Department is required to apply the absorption has occurred with respect to special rule provided the respondent Analysis of Comments Received the following firms and with respect to has demonstrated that the value added the following percentages of sales made We received case briefs from Koyo, in the United States is likely to through their U.S. affiliates: NSK, NTN, and Timken on October 16, substantially exceed the value of the 1997. We received rebuttal briefs from imported merchandise. Koyo contends Percentage the same four parties, as well as from that, given that the Department of U.S. affili- Fuji, on October 23, 1997. The determined in its preliminary results Manufacturer/exporter/reseller ates' sales with dump- comments which were contained in all that Koyo satisfied the ‘‘substantially ing margins of the case and rebuttal briefs we exceeds’’ requirement, the Department received are addressed below in the was compelled by the statute to apply For the A±588±054 Case: following order: the special rule provision and determine Koyo Seiko ...... 12.99 1. Facts Available/Further the constructed export price (CEP) for Fuji ...... 4.54 Manufacturing A–588–604 further-manufactured TRB NSK ...... 13.30 sales using the price of either identical For the A±588±604 Case: 2. Adjustments to Normal Value Koyo Seiko ...... 98.10 3. Adjustments to United States Price or other subject merchandise or, if it Fuji 1 4. Cost of Production and Constructed determined that there was not a NSK ...... 51.78 Value sufficient quantity of sales using these NTN ...... 66.36 5. Miscellaneous Comments Related to two proxies, any other ‘‘reasonable’’ Duty Absorption, Level of Trade, basis. Koyo argues that the Department 1 No shipments or sales subject to this re- view. the Arm’s-Length Test, and Sample cannot, as it did in its preliminary Sales results, simply reject the special rule in In the case of Koyo, the firm did not 6. Clerical Errors its entirety simply because it determines respond to our request for further- there is an insufficient quantity of sales manufacturing information and we 1. Facts Available/Further Manufacturing of identical or other subject determined the dumping margins for merchandise. Rather, contends Koyo, these further-manufactured sales on the Comment 1: Koyo argues that the the Department must calculate CEP basis of adverse facts available. Lacking Department’s application of adverse using ‘‘any other reasonable basis,’’ as other information, we find duty facts available with respect to its sales directed by the statute. absorption on all such sales of further- of A–588–604 further-manufactured Koyo proposes that, in light of the processed TRBs (see Antifriction TRBs was inappropriate and contrary to similarities of merchandise subject to Bearings (Other Than Tapered Roller law for the following reasons. First, the A–588–054 and A–588–604 orders, Bearings) and Parts Thereof from Koyo states, the Department apparently instead of evaluating whether the France, et. al.; Preliminary Results of decided to require further- margins of finished over 4′′ A–588–604 Antidumping Administrative Review, 62 manufacturing data because there was bearings were an appropriate proxy for FR 31568 (June 10, 1997) (where we an insufficient quantity of sales of further-manufactured merchandise, the found duty absorption with respect to imported finished A–588–604 TRBs to Department should have relied on the all sales for which respondent provided serve as a surrogate in accordance with margins of finished under 4′′ A–588– no data in response to the Department’s section 773(e) (1) and (e)(2) of the Act, 054 TRBs as a surrogate for those over questionnaire)). the special rule provision for further- 4′′ components which were further With respect to other respondents processed merchandise. Koyo asserts processed into under 4′′ TRBs, and the with affiliated importers (NSK, NTN, that the Department presumably margins of imported finished over 4′′ A– and Fuji), for which we did not apply reached its conclusion by comparing the 588–604 TRBs as a surrogate for those adverse facts available, we must entered and sales values of imported over 4′′ components which were further presume that the duties will be absorbed finished over 4′′ TRBs to the entered manufactured into over 4′′ TRBs. In fact, for those sales which were dumped. and sales values of over 4′′ TRB Koyo argues, not only is such an Where Koyo’s margins were not components which were further approach another reasonable basis, but determined on the basis of adverse facts manufactured. However, Koyo it adheres to the statutory preference for available (i.e., for non-further- contends, the Department’s comparison relying on the price of ‘‘other’’ or

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‘‘identical’’ subject merchandise. Koyo special rule provision, and once this respondents if it will require further- maintains that while the Department requirement has been met, the processing data early in the review. may be hesitant to use a margin from a Department is mandated by the statue to Timken responds that the different order or finding (A–588–054) apply the special rule for further- Department’s application of adverse and apply it to further-manufactured manufactured merchandise. NSK facts available with respect to Koyo’s products subject to a different order (A– contends that the determination of further-manufactured merchandise was 588–604), its concerns are not legally whether such sales are appropriate or supported by the record and in relevant for the special rule provision. whether there is a sufficient quantity to accordance with the law. Timken argues Koyo contends that the statute contains provide a reasonable basis for that the statute grants the Department no language suggesting that ‘‘crossing comparison relates only to the two broad discretion in the implementation orders’’ would constitute an proxies for calculating CEP set forth in of the special rule, and asserts that the unreasonable basis for comparison, and section 772(e)(1) and (e)(2) of the Department’s actions were consistent that the Department’s refusal to look with the statute when it determined that ′′ statute. NSK further argues that if the beyond the confines of the over 4 order Department determines that neither of Koyo’s A–588–604 non-further- is not consistent with the statue. Koyo these two proxies can be used, it may manufactured TRBs were an also adds that the Department’s failure calculate CEP on ‘‘any other reasonable inappropriate proxy for Koyo’s A–588– to acknowledge the existence of the basis.’’ However, NSK argues, once it 604 further-manufactured merchandise. under 4′′ finding cedes too much control Timken argues that the Department’s finds that certain merchandise qualifies to petitioners who might be encouraged use of the standard section 772(d)(2) for the special rule under the condition to write petitions that create anomalous methodology to calculate CEP for Koyo’s set forth above, the Department cannot outcomes, as is the case, Koyo asserts, further-manufactured sales constituted calculate CEP using the section with respect to the division between the another ‘‘reasonable basis,’’ and that the 772(d)(2) standard methodology. two TRB orders. information on the record did not Furthermore, Koyo argues, using the Specifically, NSK maintains that provide any other ‘‘reasonable basis’’ for calculated margins for under 4′′ finished reverting to this methodology is determining margins for further- TRBs as a proxy for that merchandise contrary to the language of the statute manufactured sales. subject to the A–588–604 order which and that this method does not constitute Department’s Position: We disagree was further manufactured is appropriate another ‘‘reasonable basis’’ by which to with respondents. The statute at section because of the physical similarities of calculate CEP because section 772(d)(2) 772(e) provides that: the merchandise. It does not matter, of the Act provides that CEP be reduced Where the subject merchandise is imported argues Koyo, that each of these by ‘‘the cost of any further manufacture by a person affiliated with the exporter or categories of merchandise is not subject or assembly * * * except in producer, and the value added in the United to the same order because, as indicated circumstances described in subsection States by the affiliated person is likely to above, the asymmetric division of the (e) of this section.’’ Therefore, NSK exceed substantially the value of the subject orders arose from historical asserts, the Department cannot reduce merchandise, the administering authority happenstance. Koyo also asserts that, if CEP by the cost of any further shall determine the constructed export price the Department were to adopt such an manufacturing within the realm of for such merchandise by using one of the approach, there would be a sufficient following prices if there is a sufficient section 772(e). NSK argues that the quantity of sales to provide a reasonable basis quantity of U.S. sales of imported Statement of Administrative Action for comparison and the administering finished A–588–054 TRBs to serve as a (SAA) at 826 supports its assertions that authority determines that the use of such proxy for further-manufactured A–588– the Department cannot apply the sales is appropriate: 604 TRBs. standard 772(d)(2) methodology once (1) The price of identical subject Koyo also suggests that, as an the condition for the special rule has merchandise sold by the exporter or producer alternative, the Department can compare to an unaffiliated person; been satisfied because it purposefully (2) The price of other subject merchandise the value of finished bearings subject to omits the standard methodology as an both the A–588–054 finding and A– sold by the exporter or producer to an alternative to the two surrogates unaffiliated person. 588–604 order to the value of further- identified in section 772(e)(1) and (e)(2). If there is not a sufficient quantity of sales manufactured bearings subject to the A– In addition, NSK claims, the SAA makes to provide a reasonable basis for comparison 588–604 order. This method would every attempt to keep section 772(e) under paragraph (1) or (2), or the guarantee, Koyo argues, a sufficient administering authority determines that quantity of sales to serve as a proxy and simple and a resort to the standard neither of the prices described in such would be reasonable and appropriate. methodology is contrary to the intent of paragraphs is appropriate, then the Having then determined a sufficient the special rule to reduce the burden of constructed export price may be determined quantity test, Koyo suggests, the a further-manufacturing analysis for the on any other reasonable basis. Department should weight-average the Department. Finally, NSK argues that Koyo asserts that the Department, margins calculated for A–588–054 and the Department’s interpretation of having determined that the value added A–588–604 finished bearings and apply section 772(e) is contrary to the in the United States is likely to the result to the A–588–604 further- objective of establishing a ‘‘bright-line substantially exceed the value of the processed components. standard’’ which allows the Department imported merchandise, is required to Like Koyo, NSK argues that the to inform respondents early during a apply the special rule provision of the Department must, in accordance with review proceeding whether or not they statute, and argues that the use of the section 772(e) of the Act, apply the must supply detailed further- word ‘‘shall’’ in the provision clearly special rule for further-processed manufacturing information. Because the demonstrates that the Department does merchandise once it has determined Department reversed its decision not have discretion as to when to invoke that the value added in the United regarding Koyo’s further manufacturing the special rule. States is likely to substantially exceed months after it initially concluded this Koyo and NSK incorrectly assume the value of the imported product. NSK data would not be required, the that we rejected the provision entirely. maintains that this is the only statutory Department, NSK argues, has defeated In addition, Koyo incorrectly argues that requirement for the application of the its stated objective of informing we imposed an additional qualification

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00004 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2561 for the application of the special rule; performing a further-manufacturing abandoned the special rule, as Koyo and namely, that we required Koyo not only analysis is high, we may determine that NSK suggest. For all respondents with to demonstrate that the value added to the potential gains in accuracy do not further-manufactured merchandise, we its further-manufactured subject outweigh the burden of applying the first evaluated whether the value added merchandise substantially exceeded the standard section 772(d)(2) methodology in the United States was likely to value of the subject merchandise as and that the use of one of the statutory substantially exceed the value of the entered but also to demonstrate that alternatives set forth in 772 (e)(1) and imported components. We determined there was a sufficient quantity of its (e)(2) is appropriate. However, if the that Fuji, NTN, and Koyo met the non-further-manufactured sales to serve burden is relatively low and the ‘‘substantially exceeds’’ qualification for as a proxy for the calculation of CEP for proportion of further-manufactured implementation of the special rule. its further-manufactured merchandise. sales is sufficiently high to raise However, while we have determined To the contrary, our decision to request concerns about accuracy, we may that the use of either of the two proxy further-processing data from Koyo was consider use of the statutory alternatives methods is appropriate for Fuji and made within the confines of and inappropriate. NTN, we have found that for Koyo, according to the language of the special In the instant case, the record does resorting to either of the alternatives set rule. The SAA provides that the special not lead us to conclude that the use of forth in the special rule provision is not rule provision will come into play when either of the two alternative methods appropriate. it is estimated that the value added in described in section 772 (e)(1) and (e)(2) If we determine that the use of one of the United States is substantially more with respect to Koyo’s further- the two proxies set forth in section 772 than half of the price charged to the first manufactured merchandise is (e)(1) and (e)(2) is inappropriate, as unaffiliated purchaser of the finished appropriate. The record indicates that explicitly directed by the statute, we merchandise (see SAA at 825–826). Koyo’s U.S. sales of further- may use any other reasonable basis to After a determination that the value manufactured subject merchandise calculate CEP for further-manufactured added is likely to substantially exceed represented a large portion of its total sales. Here the statute again grants us the value of the imported components, U.S. sales of subject merchandise during considerable latitude in determining the statute specifies that the use of the the POR. Therefore, the use of either of precisely what constitutes ‘‘any other options identified in section 772 (e)(1) the proxy methods in this case—where reasonable basis.’’ The SAA at 825 and (e)(2) is contingent upon the the proportion of further-manufactured indicates that one possible method is existence of a sufficient quantity of sales sales is relatively high—would have a basing the CEP of the further-processed to provide a reasonable basis for relatively high potential for inaccuracy. merchandise on the transfer price from comparison and that the use of such In addition, as noted in our preliminary the exporter or producer to the affiliated sales is appropriate. In other words, results, the finished merchandise sold importer. In general, however, if the two even if the quantity of the proxy sales by Koyo to the first unrelated U.S. statutory alternatives cannot be used, is sufficient, we will reject their use customer was still in the same class or we should identify and use a method unless we determine that using them is kind as merchandise within the scope of which not only satisfies the overall appropriate. the TRB order and finding (i.e., purpose of the provision—the reduction In determining whether the use of imported TRB components were of the burden on the Department—but either of the two proxy methods is processed into TRBs). As a result, the also furthers the goal of accuracy. A appropriate, the Department looks to the calculation of the precise amount of cost reasonable alternative, then, may be our underlying purpose of the special rule, of further manufacturing would not be standard further-processing analysis if which is to avoid imposing an nearly as burdensome as it would be for its use is not unduly burdensome and if unnecessary burden on the Department, Fuji, another respondent who imported it sufficiently reduces the potential for while still ensuring reasonably accurate TRBs for incorporation in automobiles. inaccuracy or distortion. results (see SAA at 825–826). As part of Furthermore, in prior reviews we have As explained in detail above, the this determination, we consider such calculated margins for Koyo’s further- record in this case indicates that the use factors as whether their use may lead to processed sales and have extensive of the standard methodology for inaccurate results. We believe that the experience with and knowledge of calculating CEP for Koyo’s further- greater the proportion of further- Koyo’s further-manufactured sales and manufactured sales is a reasonable manufactured to non-further- the calculation of the cost of further method. Therefore, we disagree with manufactured merchandise, the greater manufacturing in the United States with NSK that the standard methodology the possibility of inaccurate results. If respect to these sales. Therefore, in this cannot serve as another reasonable there is a concern about accuracy, we case we have determined that for Koyo basis. Not only would its exclusion as must consider whether an alternative the relatively small reduction of burden another reasonable basis effectively method, especially the standard on the Department that would result eliminate the Department’s ability to use methodology, would be unduly from resorting to either of the two an accurate and valid alternative in burdensome. The burden of applying statutory proxy methods under the situations such as this, but the plain the standard methodology to calculate special rule is outweighed by the language of the provision clearly does the CEP for further-manufactured potential distortion and losses in not preclude the standard methodology merchandise may vary from case to case accuracy as a consequence of their use. as a viable alternative. In addition, we depending on factors such as the nature Accordingly, we have rejected the use of disagree with NSK that, because the of the further-manufacturing process either of the two proxies as SAA does not specifically reference the and the finished products. The accuracy inappropriate and have sought to standard methodology as another gained by applying the standard calculate the CEP for Koyo’s further reasonable basis, we are unable to use methodology may also vary significantly manufactured sales using another it as such. In fact, the SAA does not from case to case, depending upon such reasonable basis. specifically exclude the standard factors as the amount of value added in This determination, however, does methodology as an option. In addition, the United States and the proportion of not indicate that, because we found the both the statute and the SAA clearly U.S. sales which undergo further alternative methods in section 772 (e)(1) grant the Department discretion with processing. Where the burden of and (e)(2) to be inappropriate, we have respect to the determination of what

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United States, 17 manufactured A–588–604 merchandise, should reject Timken’s argument. Koyo CIT 335, 340 (1993) (Bowe-Passat)). Koyo argues that the Department should argues that it would be difficult to While the special rule provides us with have compared the value of all imported imagine how applying the highest rate a method to eliminate the burden of unfinished components to the value of ever calculated for Koyo is not calculating the cost of further all finished bearings (whether subject to ‘‘reasonably adverse.’’ Furthermore, processing, its intent was not to elevate the A–588–604 order or A–588–054 Koyo asserts that just because Timken is the goal of burden reduction over the finding) in order to make our sufficiency able to devise a more adverse approach goal of accuracy. Finally, we note that determination. Since we rejected the use in applying facts available does not while NSK argues against the use of the of Koyo’s identical or other A–588–604 mean that the Department’s application standard methodology as another subject merchandise based on our of facts available is not ‘‘reasonably reasonable basis, it provides no determination that these alternatives adverse.’’ Koyo also contends that the alternative for calculating CEP for were inappropriate, Koyo’s argument is Department’s choice of the highest rate Koyo’s further-manufactured irrelevant. However, we nonetheless ever for Koyo as the adverse facts merchandise, nor does it point to any note that section 772 (e)(1) and (e)(2) of available rate was reasonable record evidence establishing that the the Act refers to identical or other considering the fact that Koyo standard methodology would be, in this subject merchandise. As a result, when cooperated with the Department in instant case, inappropriate for determining if such sales occurred in a every aspect of the review with the only calculating CEP for Koyo’s further- sufficient quantity, the statute clearly exception being its decision not to file manufactured merchandise. limits our determination to the scope of a response to Section E of the As discussed in the summary above, the order and does not permit the Department’s questionnaire. Koyo does propose, however, an inclusion of non-subject sales as Koyo Department’s Position: We disagree alternative for calculating the CEP of its suggests. with Timken. In accordance with further-manufactured A–588–604 TRB In light of all of the above, we have section 776 (a) and (b) of the statute and merchandise, which it believes determined that the facts in this case our consistent practice, because Koyo constitutes ‘‘another reasonable basis.’’ support the selection of the standard failed to cooperate to the best of its Koyo proposes that the Department, methodology as a reasonable basis. ability in responding to our requests for instead of evaluating whether the Furthermore, because Koyo failed to information by declining to provide data margins for finished over 4′′ A–588–604 comply with the Department’s request on its further-processed sales, we bearings were an appropriate surrogate for further-processing data, for these applied adverse facts available in the for A–588–604 further-manufactured final results we have applied as adverse absence of the further-manufacturing merchandise, could have used the facts available to Koyo’s further- sales information. In selecting from margins it calculated for under 4′′ A– manufactured merchandise the highest among the facts available, we chose as 588–054 bearings as a proxy for that A– rate ever calculated for Koyo in any the adverse facts available rate to apply 588–604 merchandise which was segment of the A–588–604 proceeding to Koyo’s further-manufactured sales the further processed into under 4′′ (36.21 percent). highest rate we ever calculated for Koyo bearings, and the margins calculated for Comment 2: Timken argues that in any previous review of the A–588– over 4′′ bearings as a proxy for that A– Department should adhere to its normal 604 case. We then applied that rate to 588–604 merchandise which was practice and apply an adverse facts the total entered value of Koyo’s further- further processed into over 4′′ bearings. available rate of 36.21 percent to the manufactured sales. In choosing among While Koyo’s proposal would be less total sales value of Koyo’s further- the facts available, we are not required burdensome than the use of the manufactured sales rather than to the by the statute to select a method that is standard methodology, we believe that total entered value of these sales. Citing ‘‘the most’’ or ‘‘more’’ reasonably the standard methodology is not unduly the United States Court of Appeals for adverse. In choosing the highest margin burdensome and presents a higher the Federal Circuit’s (CAFC) decision in ever calculated for Koyo in the A–588– probability of accurate results than Olympic Adhesives v. United States, 604 case, we have adhered to the using margins calculated for non- 899 F. 2d 1565, 1572 (Fed. Cir. 1990), statutory language and selected further-manufactured sales. Among Timken contends that the Department is information that is adverse to the other things, Koyo’s proposal relies on required to draw an inference that is interest of Koyo. Timken has failed to information concerning a different class ‘‘reasonably adverse’’ to the respondent. offer arguments or provide record or kind of merchandise and therefore in However, Timken asserts, Koyo’s evidence demonstrating that the rate this case does not sufficiently allay selective submission of information has selected is not reasonably adverse. concerns about potential inaccuracy. seemingly worked to its advantage in Therefore, for these final results, we The record indicates that the use of that Koyo has apparently received a have not changed our application of these proxy methods would have a lower margin despite the application of facts available with respect to Koyo’s relatively high potential for distortion; facts available. Timken maintains that sales of further-manufactured TRB we believe that the gains in accuracy we this is supported by the fact that while components. would achieve using the standard the preliminary margin for Koyo in the Comment 3: For the preliminary methodology would outweigh the A–588–604 case for this review is 23.26 results of these reviews, we applied additional burden resulting from the use percent, in previous reviews in which facts available with respect to certain of of the standard calculation. The record the Department calculated margins for MC’s sales because it did not provide

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In the company with an opportunity to billing adjustment we derived from fact, we have determined that other correct its deficiencies for the final NTN’s home market database. However, transaction-specific adjustments are results. Timken argues that if MC is the difference between the two totals inaccurate because the total of all billing unable to provide the information was significantly different from the adjustments does not match the total necessary for matching certain of its difference Timken cited in its brief. from exhibit three. Furthermore, U.S. sales to sales of the foreign like Therefore, we reviewed the record to because the total from exhibit three product, the Department should apply ascertain the accurate total for NTN’s resulted in our successful trace to NTN’s as adverse facts available to these billing adjustments. MOF reports, we find this total to be far unmatched U.S. sales the highest During verification we thoroughly more reliable than any other margin for any respondent in any verified NTN’s reported home market information on the record. review of the A–588–054 finding. volume and value for the POR. As our Therefore, having determined that the exhibit three total billing adjustment Department’s Position: As stated in verification report indicates, it was amount is the accurate figure, we have our preliminary results, MC’s necessary for us to reconcile the volume adjusted NTN’s reported transaction- questionnaire response contained only and value NTN reported in its response specific billing adjustments to reflect limited model-match information which to its Ministry of Finance (MOF) reports. this total. However, because our own prevented us from finding As part of this reconciliation we analysis indicates an adjustment contemporaneous sales of the foreign examined an adjustment NTN made for different than that calculated by like product for comparison to a small its total HM billing adjustments for the Timken, while we agree with Timken number of U.S. sales of subject POR (see Department’s Home Market that an adjustment is warranted, we merchandise (see TRB Prelim at 47455). Verification Report for NTN, July 9, As a result, in accordance with section have relied on our own calculated 1997, exhibit three) (NTN HM Report). adjustment amount. Furthermore, 776(a) of the Act, we resorted to facts Not only did we successfully trace this because the record provides no available. Because MC was not total to the computer program NTN used information as to which transaction- previously afforded the opportunity to to calculate it, but we also traced NTN’s specific billing adjustments are remedy or explain its deficiencies, on reported volume and value for the POR accurate, and because NTN has neither September 16, 1997, we issued a for its home market sales directly to the explained this discrepancy nor provided supplemental questionnaire to MC MOF report with no discrepancies (see us with any information with respect to requesting this information. On NTN HM Report at 6). We also verified the correction of this discrepancy in its September 30, 1997, MC responded by NTN’s reported, transaction-specific reported data, we have relied on facts submitting the necessary data. The home market billing adjustments by available to correct NTN’s reported information provided by MC has examining a variety of sales home market billing adjustments. allowed us to find contemporaneous documentation in the sales trace portion Because we are unable to identify which sales of the foreign like product to of our verification (see NTN HM Report billing adjustments are inaccurate, as compare to all of MC’s U.S. sales. at 17). Again we found no facts available, we systematically sorted Therefore, we have determined that it is discrepancies. As a result of both through NTN’s raw home market not necessary to apply facts available to verification exercises, one would database and totaled the reported per- any of MC’s U.S. sales for these final assume that NTN’s reported home sale billing adjustments until we arrived results. market billing adjustments were at a total equal to our calculated 2. Adjustments to Normal Value accurate and that the total of its adjustment. We then adjusted these transaction-specific billing adjustments sales’ billing adjustments such that they Comment 4: Timken asserts that for the POR would equal the total reflected the total in exhibit three and because there is a discrepancy between reported on exhibit three of our disallowed the rest of NTN’s reported NTN’s computer tape and the total verification report. However, this is not billing adjustments. For a detailed billing adjustment figure in a the case. In fact, when we calculated the description of this methodology please verification exhibit, NTN has incorrectly overall POR total billing adjustment for refer to the proprietary version of the reported its home market billing NTN’s home market database, this total Department’s Final Analysis adjustments. Thus, Timken argues that was significantly different from that Memorandum for NTN, dated January 7, NTN’s reporting is inconsistent with its reported in the referenced exhibit three. 1998. narrative response and its verification Therefore, we needed to determine Comment 5: Timken contends that exhibit and, given these inconsistences, which billing adjustment figure was NTN used an incorrect denominator the Department should convert NTN’s correct. For example, as we noted above, when calculating the ratio it used to negative billing adjustments to positive not only did we verify the accuracy of allocate home market inventory carrying adjustments. the total from exhibit three, but we also costs, resulting in inaccurate expense NTN claims that there is no merit to verified the accuracy of NTN’s reported calculations. Timken also argues that Timken’s request because the transaction-specific billing adjustments. even if NTN had calculated an accurate Department verified that its reported After additional review, we have ratio, it nevertheless incorrectly applied home market billing adjustments were concluded that the exhibit three figure this percentage to its home market sales. accurate. Therefore, NTN argues that the is the accurate total. We recognize that Therefore, Timken asserts, for purposes Department should retain its billing while our verification of NTN’s reported of the final results the Department adjustments as reported, and reject transaction-specific adjustment yielded should not only recalculate the Timken’s proposed adjustment. no discrepancies, this verification inventory carrying cost expense ratio for

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NTN’s home market sales using the NTN’s home market sales to calculate incurred selling expenses, including appropriate sales value (denominator), revised expense adjustments. technical service expenses. but it should also use the revised ratio NTN contends that these adjustments Furthermore, at verification we verified to recalculate NTN’s claimed were successfully verified and that its that the unit in question clearly adjustment. methodology has been accepted by the performed selling functions, and clearly NTN argues that the Department Department in the past. NTN claims that incurred selling expenses. Timken’s thoroughly verified its calculation for the reasons set forth in comments claims are based on its failure to methodology for inventory carrying four and five, the Department need not recognize the distinction between two costs and found no discrepancies. NTN reexamine the data verified in Japan. separate divisions of the same unit further asserts that not only is Timken’s Further, NTN contends that, because which perform separate responsibilities. argument based on a misunderstanding Timken fails to put forth any rationale Therefore, for these final results, we of information on the record, but the regarding their proposed modification of agree with NTN and have continued to Department has repeatedly accepted the ratio used to determine the amount accept its reported technical service NTN’s reporting methodology in prior of the adjustment, there is absolutely no expenses. TRB and antifriction bearings (AFB) grounds for the Department to reverify Comment 8: Timken argues that cases. Tapered Roller Bearings and and modify data already closely Koyo’s transaction-specific home market Parts Thereof, Finished and Unfinished, examined. billing adjustments (BILADJ1H) are From Japan, and Tapered Roller Department’s Position: We agree with already reflected in the reported gross Bearings, Four Inches or Less in Outside the respondent. In the instant review we unit prices and that, consequently, the Diameter, and Components Thereof, conducted a thorough verification of Department should not adjust Koyo’s From Japan, Preliminary Results of NTN’s reported home market unit prices for the BILADJ1H amounts. Antidumping Duty Administrative adjustments to include post-sale freight, Timken asserts that the Department’s Reviews and Termination in Part, 61 FR pre-sale freight, packing labor, packing June 20, 1997 home market verification 25200, 25202 (May 20, 1996) and material, and indirect selling expenses. report for Koyo (Koyo Home Market Antifriction Bearings (Other Than We concluded that NTN’s methodology Report) supports its arguments that Tapered Roller Bearings) and Parts yielded accurate results (see NTN HM home market prices have already been Thereof From France, Germany, Italy, Report at 8). After reviewing the record revised to account for billing Japan, Singapore, Sweden, and the again for these final results, it is clear adjustments because the report notes United Kingdom; Final Results of from the home market verification that ‘‘Koyo searched back through its Antidumping Duty Administrative exhibits that all of NTN’s adjustments database, located the matching sales Reviews and Partial Termination of were calculated correctly. Therefore, for transaction(s), canceled them out and Administrative Reviews, 61 FR 66472, these final results, we have accepted re-entered the revised price’’ (Koyo 66486 (December 17, 1996) (AFBs V). As NTN’s reported home market Home Market Report at 6). Additional a result, NTN argues, there is no basis adjustments but have recalculated them evidence from the relevant verification for Timken’s argument. without regard to levels of trade, as exhibit, Timken argues, also supports its Department’s Position: We agree with discussed in our response to comment conclusions. For example, Timken NTN. Timken appears to have 32 below. notes, there is a particular TRB model misunderstood the verification exhibits. Comment 7: Timken claims that NTN which appears in Koyo’s sales ledger at However, it is clear from the failed to provide an adequate narrative a given price (apparently the ‘‘original’’ information on the record that NTN response to the Department’s price), but the reported gross unit price accurately calculated and applied the supplemental questionnaire regarding for a sales transaction involving that appropriate ratio when allocating its its calculation of technical service model is different from the ledger price. home market inventory carrying costs. expenses. Instead, Timken argues, NTN Timken further argues that the fact that Not only did we verify NTN’s inventory failed to demonstrate that its technical the Department had to deduct post-sale carrying cost allocation, including the services were selling expenses, and, as price adjustments from the ledger totals denominator, without discrepancy (see a result, the Department should not to reconcile total value and volume NTN HM Report at 11), but NTN’s make an adjustment to normal value supports its position that gross unit response demonstrates that NTN (NV) for these expenses. sales prices are already net of billing applied an accurate ratio to all of its NTN claims that Timken’s argument adjustments. home market sales. Therefore, we have is based on a misunderstanding of the Koyo responds that Timken has not recalculated NTN’s reported home NTN corporate brochure and that overlooked an error in the BILADJ1H market inventory carrying costs for Timken misunderstands the computer reporting methodology that these final results. relationship, role, and function of those was corrected prior to verification. Koyo Comment 6: Timken argues that the entities which incurred technical argues that the revised tapes it Department should ensure that all of service expenses during the POR. NTN submitted to the Department after NTN’s reported home market argues that it has clearly demonstrated verification properly reflect gross unit adjustments are accurate and claims that that all of its technical service activities prices prior to any billing adjustments. NTN’s post-sale freight, pre-sale freight, are selling expenses and that, Timken’s The reported gross unit price of the TRB packing labor, packing material, and claims should be dismissed as model identified by Timken, Koyo indirect selling expenses (to include groundless. argues, has been corrected on the technical services, advertising, Department’s Position: We agree with revised tapes and now matches the warehousing, and other indirect selling NTN. In its brief Timken argues that a ‘‘original’’ price (before any expenses) were incorrectly allocated specific entity which NTN reported as adjustments) appearing in its sales using an inaccurate total sales value. incurring technical service expenses did ledgers. Timken asserts that the Department not incur these expenses as selling Department’s Position: We disagree should recalculate allocation ratios for expenses. However, it is clear from with petitioner. We have reviewed the all of NTN’s expenses (except technical information on the record that the unit record, and have determined that the services) using the correct total sales in question performed selling functions, gross unit prices Koyo reported in its value and apply these revised ratios to including technical services, and thus revised home market tape submitted on

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May 30, 1997 are not net of billing Timken also argues that Koyo’s claim the CIT, upon remand, ordered the adjustments. As Koyo explained in its for lump-sum billing adjustments Department to attempt to devise a rebuttal brief, it filed a revised home should be denied because Koyo has not methodology that removed PSPAs and market sales file with the Department as acted to the best of its ability in rebates paid on sales of non-subject a result of the error it discovered in the reporting them. Timken claims that merchandise from FMV (NV), and to reporting methodology for this there is information on the record which deny such an adjustment if they could adjustment. The model identified by demonstrates Koyo could have devised not be removed. In that decision, Timken was one of those affected by a computer program to match lump-sum Timken contends, the CIT held that this reporting error (see Koyo Home adjustments to the relevant sales. For PSPAs and rebates paid on both subject Market Report at 6). Therefore, for these example, Timken argues that while in and non-subject merchandise were final results, we have not made any its questionnaire response Koyo states acceptable provided the amount paid changes with respect to our treatment of that it does not maintain lump-sum per sale was the same throughout the Koyo’s transaction-specific billing adjustments in a customer-specific POR. Timken further argues that adjustments. manner, it also states in the response because the CIT determined that NSK Comment 9: Timken argues that the that it ‘‘matched these debit and credit did not meet the standard for Department should reject Koyo’s and notices to the relevant sales in order to acceptance of its lump-sum PSPAs, and NSK’s claims for home market lump- report the billing adjustments on a because NSK’s allocation methodology sum post-sale price adjustments transaction-specific basis.’’ Timken for the current reviews is apparently (PSPAs). With respect to Koyo, Timken maintains that this is exactly the type of unchanged, its lump-sum adjustments asserts that the Department should deny computer programming that would should not be allowed. Timken asserts an adjustment to NV for Koyo’s allow Koyo to attribute lump-sum that the CIT, in other decisions, has customer-specific lump-sum billing billing adjustments to the sales upon upheld the rejection of NSK’s lump-sum adjustments (BILADJ2H) for the which they were granted. Timken also adjustments. For example, in Torrington following reasons: (1) NV may not be argues that additional evidence of Co. v. United States, 881 F. Supp 622 modified by adjustments attributable to Koyo’s ability to match lump-sum (CIT 1995), Timken argues, the CIT non-scope merchandise; (2) sales prices adjustments to relevant sales is ordered the Department on remand to modified by adjustments not contained in the home market develop a methodology for removing attributable to those particular sales verification report, which describes how PSPAs paid on non-subject merchandise cannot be used to calculate NV; (3) Koyo Koyo was able to design a program that from the calculation of FMV (NV). has not acted to ‘‘the best of its ability’’ searched its database to reenter revised Timken also cites Torrington Co. v. in reporting its lump-sum billing unit prices. United States, 926 F. Supp. 1151 (CIT adjustments; and (4) Koyo hasn’t Finally, Timken asserts that Koyo has 1996), and claims that the CIT, in that demonstrated that its allocation not demonstrated that its lump-sum decision, held that PSPAs which could methodology is not distortive. Timken billing adjustments are not distortive, not be tied specifically to the sales for notes that Koyo has calculated its lump- and claims that Koyo’s May 30, 1997 which they were granted could not be sum billing adjustments by multiplying home market sales printout treated as direct expenses and affirmed the total adjustment amount paid to a demonstrates this. Timken points to two the disallowance of NSK’s lumps-sum customer by the ratio of its TRB sales to examples of similar gross unit prices adjustments because they could not be that customer to the total sales to that from the sales tape that have been tied to specific part numbers. customer. As a result, Timken argues, modified by lump-sum billing Timken further contends that in this adjustment is attributable to subject adjustments, and argues that because Timken Co. v. United States, 930 F. and non-subject merchandise and this each of the adjustments is a given Supp. 621 (1996), the CIT held that allocation methodology attributes a percentage of the unit price, all those Commerce should not have allowed an portion of the adjustment to sales for sales which have had the adjustment adjustment to FMV (NV) for NSK’s which no adjustment was made. Timken allocated to them, even though they lump-sum PSPAs. Timken also cites to claims that the Court of International were not in the group of sales to which the CIT’s more recent decision in NSK Trade (CIT) in Torrington Co. v. United the adjustment is correctly attributed, vs. United States, 969 F. Supp. 34 (CIT States, 17 CIT 199, 218, 818 F. Supp have been modified by that percentage. 1997), asserting that the CIT affirmed 1563, 1578 (1993) (Torrington) held that Timken further contends that such a the Department’s disallowance of NSK’s ‘‘merchandise which is outside the difference is distortive given that the lump-sum PSPAs. scope of an antidumping duty order statute recognizes any margin over .5 In sum, Timken argues that NSK’s cannot be used in the calculation of percent as significant, and recommends allocation methodology is distortive antidumping duties,’’ and its decision in that the Department subtract (rather because, although every individual this case is reason alone to reject Koyo’s than add) BILADJ2H from the gross unit payment of a lump-sum adjustment ties claim for lump-sum billing adjustments. price to correct this distortion. to a certain group of sales transactions Regarding its next claim, Timken Petitioner also urges the Department (and not to all sales), NSK nonetheless asserts that the statute provides that to reject NSK’s claims for lump-sum allocates the total of lump-sum ‘‘normal value shall be the price’’ at rebates. Timken argues that NSK failed payments to all POR sales. In addition, which the foreign like product is sold. to accurately report the amount of it Timken claims that NSK has not acted However, Timken argues, as a result of customer-specific lump-sum PSPAs to the best of its ability in reporting its Koyo’s allocation methodology, there directly attributable to specific sales of lump-sum PSPAs. are some home market sales prices that scope merchandise, and that, Koyo responds that its lump-sum have been modified by a portion of the accordingly, the Department should billing adjustments are not distortive. lump-sum billing adjustment which is deny an adjustment to NV for these Citing to the most recent AFB and TRB not properly attributable to those PSPAs. Timken argues that the reviews, Koyo asserts that the particular sales. Therefore, Timken Department’s acceptance of NSK’s Department has evaluated Koyo’s lump- argues, the modified price of such sales lump-sum adjustments is contrary to sum billing adjustment methodology is not ‘‘the price at which the foreign Federal-Mogul Corp. v. United States, and in each case has allowed the like product was first sold.’’ 834 F. Supp. 1391 (CIT 1993), in which adjustment. The reporting methodology

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00009 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 2566 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices for the current reviews, Koyo asserts, is and that ‘‘we are satisfied that Koyo’s adjustments when it was not feasible for the same as that which the Department allocation methodology across subject a respondent to report these adjustments has previously accepted. merchandise by sales value was not on a more specific basis, provided that Koyo argues that Timken’s reliance on distortive.’’ the allocation method used does not Torrington to support its assertions that Koyo adds that the Department cause unreasonable inaccuracies or the adjustment should be denied followed the intent of the URAA to distortions. because it was allocated over a total liberalize reporting requirements in In applying this standard, we have not sales value which included non-subject accepting billing adjustments and rejected an allocation method solely merchandise is inappropriate because asserts that the SAA at 823–824 makes because the allocation includes the case was decided before the clear this intent. Furthermore, Koyo adjustments granted on non-scope enactment of the URAA. Furthermore, claims, the Department’s new merchandise. However, such allocations Koyo argues, even prior to the URAA, antidumping regulations allow the are not acceptable where we have the CAFC rejected the distinction Department to consider allocated reason to believe that respondents did between scope and non-scope expenses and adjustments where not grant such adjustments in merchandise used by the CIT. In transaction-specific reporting is not proportionate amounts with respect to addition, Koyo argues that the possible, and that Koyo’s allocation sales of out-of-scope and in-scope Department determined that the methodology is consistent with the merchandise. We have made this Torrington case was of limited relevance expressed goals of the new regulations. determination by examining the extent in evaluating Koyo’s billing adjustment Koyo claims that calculating to which the out-of-scope merchandise allocation methods for 1994/95 AFB BILADJ2H on a transaction-specific included in the allocation pool is review (see Antifriction Bearings (Other basis is not possible. Because a portion different from the in-scope merchandise Than Tapered Roller Bearings) and of the adjustments are attributable to in terms of value and physical Parts Thereof From France, et. al.; Final more than one sale, Koyo asserts that characteristics, and the manner in Results of Antidumping Administrative data linking a given sale to a particular which it is sold. Significant differences Review, 62 FR 2091 (January 15, 1997) adjustment does not exist within its in such terms may increase the (AFBs VI)). database. Finally, regarding Timken’s likelihood that respondents did not With respect to Timken’s claims that assertion that any adjustment which grant price adjustments in proportionate Koyo has not demonstrated that its exceeds the de minimis threshold points amounts with respect to sales of subject allocation methodology is not distortive, to a distortive allocation, Koyo responds and non-subject merchandise. While we Koyo responds, citing the 1995/1996 that the concept of the de minimis scrutinize any such differences carefully AFB Final Results (Antifriction Bearings threshold is not related to whether or between in-scope and out-of-scope sales (Other Than Tapered Roller Bearings) not an allocation is distortive. in terms of their potential for distorting and Parts Thereof From France, NSK responds that the judicial reported per-unit adjustments on the Germany, Italy, Japan, Romania, precedent relied on by Timken to sales involved in our analysis, it would Singapore, Sweden, and the United support its assertions includes cases be unreasonable to require that Kingdom; Final Results of Antidumping decided before the enactment of the respondents provide sale-specific Duty Administrative Reviews, 62 FR URAA which do not govern the adjustment data on non-scope 54043 (October 17, 1997)(AFB’s VII)), Department in post-URAA reviews. merchandise in order to prove that there that the Department has established a Furthermore, NSK argues that the SAA is no possibility for distortion. Such a test for determining whether or not and the new antidumping regulations requirement would defeat the purpose allocations are distortive. Koyo argues support the Department’s acceptance of of permitting the use of reasonable that the Department’s test does not NSK’s methodology for allocating lump- allocations by a respondent that has depend on whether sales in the sum PSPAs. NSK adds that the cooperated to the best of its ability. allocation pool were of non-subject Department, in recent AFB reviews, has Based on our examination of the merchandise, nor does it depend upon accepted NSK’s lump-sum PSPAs. record in this and in past reviews, we the difference between the allocated and Department’s Position: We disagree are satisfied that Koyo’s records do not actual adjustment. Koyo contends that with Timken. We have granted claims allow it to report these billing the purpose of the test is to determine for PSPAs as direct adjustments to NV adjustments on a transaction-specific if merchandise in the allocation pool is if we determined that the respondent, in basis and that Koyo acted to the best of significantly different in terms of value, reporting these adjustments, acted to the its ability in calculating the reported physical characteristics, and the manner best of its ability in providing adjustment on as narrow a basis as its in which it was sold. Koyo further information and meeting the records allowed. Therefore, for these argues that evidence on the record in requirements we have established with final results we have made a direct the instant reviews demonstrates that it respect to these adjustments, and that its adjustment to NV for Koyo’s lump-sum has met the Department’s test regarding reporting methodology was not billing adjustments. whether an allocation is distortive. For unreasonably distortive (see section With respect to NSK, as explained in example, Koyo claims that the 782(e) of the Act). We did not treat such our preliminary analysis memorandum, merchandise over which it allocated adjustments as direct or indirect selling we have accepted its claims for lump- billing adjustments was similar in terms expenses, but as direct adjustments to sum rebates because we are satisfied of value and physical characteristics identify the correct starting price. While that NSK’s methodology, while it and that as a result, the sales patterns of our preference is for transaction-specific includes non-subject merchandise, does these products were similar to the reporting, we recognize that this is not not shift rebates from non-scope to merchandise to which the adjustments always possible. It is inappropriate to scope merchandise. In its response, NSK were specifically attributable. Citing reject allocations that are not submitted information demonstrating AFBs VI and AFBs VII, Koyo notes that unreasonably distortive where a fully that the ratio of scope to non-scope the Department concluded in the three cooperating respondent is unable to merchandise purchased by each most recent AFB reviews that ‘‘it is not report the information in a more specific customer who received this rebate was feasible for Koyo to report this manner (see section 782(e) of the Act). relatively constant throughout the POR. adjustment on a more specific basis’’ Accordingly, we have accepted these Furthermore, we have determined based

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00010 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2567 on our review of the record that NSK supplemental questionnaire, we asked removed the total sales value of Koyo’s acted to the best of its ability in Koyo to explain why it was unable to OEM home market sales from the reporting these price adjustments and report home market rebates on a more denominator of the expense ratio. that reporting on a more specific basis specific basis. In its supplemental Koyo responds that Timken’s was not possible given the manner in response Koyo stated that more specific argument regarding its allocation which NSK maintains its records. reporting for a certain customer who methodology for pre-sale freight has Comment 11: Timken argues that received rebates was not possible been rejected by the Department in past Koyo’s home market rebates were not because its records did not allow it to reviews and urges the Department to allocated over the actual sales for which isolate sales of those bearings for which once again dismiss it. Koyo argues that they were incurred. Timken further rebates were granted. Based on it has reported its pre-sale freight asserts that Koyo did not act to the best information Koyo provided, we are expense in the same manner as in past of its ability in reporting this adjustment satisfied that Koyo acted to the best of reviews, and asserts that the Department because the record indicates that Koyo its ability in reporting home market has verified and accepted its use of had the capability to properly link rebates. However, because Koyo’s Koyo Seiko’s total sales value as the rebates to specific sales. Finally, Timken allocation methodology includes non- denominator for calculating pre-sale maintains that Koyo has provided no scope merchandise, we have freight. Koyo further maintains that its evidence demonstrating that its nevertheless examined Koyo’s total bearing sales amounts were based allocation methodology is not distortive allocation to determine if it is distortive. on its ‘‘Sales and Cost of Goods Sold’’ and asserts that the Department should Our review of the record indicates that summary, and that the total bearing consequently deny Koyo’s claim for the non-scope merchandise included in sales for its distributors were based on home market rebates. Koyo’s allocation are sales of bearings figures the Department tied to the Koyo responds that, as with its billing other than TRBs. Not only has our audited financial statements. adjustments, the measure of whether or review and analysis of the record given Furthermore, Koyo argues that these not an allocation is distortive does not us no reason to believe that Koyo is sales totals included those to affiliated depend on the difference between an more likely to grant rebates on sales of and unaffiliated customers in the home allocated and actual adjustment or bearings other than TRBs than on sales market and export markets. Koyo argues whether the allocation pool includes of TRBs, but we note that Koyo is that because its home market and export merchandise for which the expense was primarily in the business of selling sales were to a mix of both affiliated and not originally incurred. Koyo argues that bearings, some of which are within the unaffiliated customers, its allocation when attempting to determine whether scope of the TRB orders and others methodology was fair and that the an allocation is distortive, the which are not. While we recognize that proper basis for allocation is its prices Department examines the extent to there are differences among bearings, we for all relevant sales. which merchandise in the allocation have not found that the scope and non- Department’s Position: We agree with pool is different from merchandise for scope bearings included in Koyo’s petitioner in part. While we agree that which the expense was incurred in allocation vary significantly in terms of Koyo’s questionnaire response does terms of value, physical characteristics, value, physical characteristics, nor the indicate that it did not incur pre-sale and the manner in which it is sold. In manner in which they were sold such freight expenses for certain home fact, Koyo asserts, the Department, in that Koyo’s allocation would result in market sales, we disagree with Timken the most recently completed TRB an unreasonably inaccurate or distortive that Koyo’s allocation of these expenses review, found that the subject and non- allocation. Therefore, for these final is otherwise unreasonable. In its subject bearings included in the results we have made no changes in our response Koyo reported home market allocation pool for home market rebates treatment of Koyo’s home market pre-sale freight expenses which did not differ significantly with respect rebates. reflected those expenses it incurred to value, physical characteristics, or Comment 12: Timken argues that when transporting TRBs destined for sales patterns. Koyo further argues, Koyo’s domestic pre-sale freight sale in both the U.S. and home markets citing the home market verification expenses should be allocated equally to from the home market plant to home report, that the Department’s finding sales in the home market and in the market warehouses. While Koyo that ‘‘[there were] no discrepancies in United States. Timken contends that reported these pre-sale freight expenses either the program or the calculation Koyo’s practice of allocating Japanese for all of its home market and U.S. sales, methodology’’ demonstrates that Koyo’s pre-sale freight expenses to U.S. sales on its questionnaire response indicates that rebate allocation methodology is not the basis of transfer prices is potentially there are certain home market sales for distortive. distortive because such prices are not at which Koyo did not incur this expense Finally, Koyo argues that because the arm’s length. Koyo’s allocation because the merchandise was not Department in the 1994/1995 TRB methodology, Timken argues, has the transported from the plant to a reviews determined that Koyo had acted effect of shifting expenses attributable to warehouse at a location different from to the best of its ability in reporting U.S. sales to sales in the home market. the plant. For example, on page 36 of its rebates, and because the allocation Timken also argues that Koyo’s section B response to our questionnaire, methodology for these reviews is response demonstrates that there are Koyo explains that, prior to sale, not unchanged, the Department should certain home market sales for which the only did it store TRBs at its two home continue to make a direct adjustment to company did not incur pre-sale freight market central warehouses, warehouses home market price for rebates for these expenses. Timken suggests that, because at its branch and sales offices, and at the final results. the record indicates that Koyo warehouses of its consolidated Department’s Position: We disagree maintained warehouses at its plants distributors, but it also stored certain with Timken. During the POR Koyo during the POR, and because pre-sale merchandise at its plant warehouse. In granted rebates to certain of its home freight expenses are not incurred for the proprietary explanation following market customers. Koyo calculated sales shipped directly from the plant this description Koyo again indicates rebate factors by dividing the total warehouse to the customer, the that there are certain types of home rebates paid to a given customer by the Department should follow its practice market sales for which the merchandise total POR sales to that customer. In our from the 94–95 TRB review in which it was stored at its plant warehouse. In

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00011 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 2568 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices addition, on page 23 of its section B which the expense was actually Corporation of U.S.A. (KCU), its wholly- response, when explaining its post-sale incurred (see, e.g., 92–93 TRB Final at owned U.S. affiliate, the U.S. sales home market freight expenses, Koyo 57635 and Certain Fresh Cut Flowers transactions relevant to Koyo’s states that it incurred post-sale freight From Columbia; Final Results of allocation are those between Koyo Seiko expenses either in shipping Antidumping Duty Administrative and KCU. Thus, Koyo correctly merchandise from the plant directly to Reviews, 61 FR 42848 (August 19, included within its denominator the a customer or when transporting 1996)). In addition, we examine the total value of its sales to KCU, which merchandise from a warehouse to a respondent’s allocation methodology to were made at transfer prices. Similarly, customer. Again, this indicates that determine if there is internal in the home and third-country markets there are certain home market sales for consistency between the numerator and Koyo Seiko sold to both affiliated and which the merchandise is shipped denominator and in the methodology as unaffiliated customers. Therefore, Koyo directly from the plant to a customer a whole. For example, if an expense is properly included within its allocation and, therefore, is not transported to a allocated on the basis of total sales denominator the total value of Koyo warehouse at a location different from value, as is the expense at issue here, Seiko’s sales to its home and third- the plant. Therefore, we agree with the expense amount (the numerator) and country market customers, some of Timken that the record demonstrates the total sales value (the denominator) which were made at resale prices while that there are certain home market sales should reflect the same pool of sales others were at transfer prices. Koyo’s for which Koyo did not incur home such that the total expense amount methodology, therefore, not only relies market pre-sale freight expenses. reported by the respondent is divided on a numerator and denominator which We have determined that for these by the total value of the sales for which reflect the same pool of sales, but its final results it is necessary to (1) the expense was actually incurred. denominator is calculated on the basis reallocate Koyo’s reported home market Likewise, the allocation ratio should be of the value of those sales for which the pre-sale freight expenses such that the applied to the same sales price reflected reported total expense amount was total sales value of those home market in the denominator. For example, we actually incurred. When calculating the sales for which the expense was not would not accept the application of an per-unit expense adjustment amount for incurred is excluded from the allocation allocation ratio to home market gross each U.S. and home market transaction, denominator, and (2) apply the expense sales price if the denominator was Koyo applied its allocation ratio (which only to those home market sales for calculated by totaling the value of all was the same for all sales) to the which the expense was incurred. appropriate unit price. For U.S. sales it However, Koyo’s response does not sales on the basis of a net price. In the instant case, Koyo Seiko, the Japanese applied the ratio to the transfer prices enable us to specifically identify within Koyo reported between Koyo Seiko and Koyo’s home market database those parent, incurred the pre-sale freight expenses at issue for all merchandise, KCU, which were the U.S. prices upon sales for which the expense was not which the expense was incurred and the incurred. In light of this, we have whether destined for sale to the U.S., third-country, or home market (with the U.S. sales values reflected in Koyo’s determined to rely on facts available to allocation denominator. For home determine those sales for which the exception of the home market OEM sales described above). Because Koyo market sales, Koyo applied the ratio to expense was not incurred. Based on either a resale price (for unaffiliated Koyo’s proprietary narrative explanation does not maintain its records such that it is able to calculate the total expense customers) or transfer price (for on page 36 of its response, we have affiliated customers) because these were concluded that Koyo did not incur this amount incurred for each market, it was the home market prices upon which the expense on certain sales to home market unable to separately calculate the expense was incurred and the home OEM customers. While we recognize specific pre-sale freight expense market sales values reflected in the that it is likely that not all of Koyo’s attributable to each market. Therefore, allocation denominator. home market OEM sales were exempt Koyo used as its allocation numerator from this expense, because we are the total expense amount incurred by Timken argues that, in order to unable to identify exactly which OEM Koyo Seiko for all merchandise, as properly reflect commercial reality and sales were exempt, we have applied derived from Koyo Seiko’s sales records. avoid distortion, Koyo should instead non-adverse facts available and The sales for which this expense was apply its expense ratio to U.S. resale recalculated the expense adjustment by incurred were Koyo Seiko’s sales to all prices, the price between KCU and the (1) removing from Koyo’s reported its customers, which encompassed a first unaffiliated U.S. customer. allocation denominator the total sales mix of affiliated and unaffiliated entities However, Timken overlooks the fact that value of Koyo’s home market OEM sales in both the export and home markets. this transaction is not the sale for which and (2) applying the recalculated Thus, Koyo calculated its pre-sale the expense was actually incurred. As a expense adjustment to U.S. sales and freight allocation denominator by result, Timken’s proposed methodology only non-OEM home market sales. totaling the value for all of Koyo Seiko’s would neither reflect the manner in However, despite the fact that we sales to all its customers, as derived which, nor the sales upon which, Koyo have determined for these final results from Koyo Seiko’s records. While for actually incurred the expense. Timken’s that Koyo’s pre-sale freight allocation these final results we have adjusted this argument also ignores the fact that denominator is overstated and the denominator to exclude the total sales Koyo’s allocation denominator includes expense was reported for home market value of home market OEM sales, we not only U.S. transfer values but home sales for which it was not incurred, we have nevertheless preserved Koyo’s market and third-country transfer values disagree with Timken that Koyo’s basic allocation methodology. Because as well. Thus, Timken’s assertion that allocation otherwise fails to reflect the Koyo Seiko’s customers encompassed a Koyo always calculates the home market manner in which the expense was mix of affiliated and unaffiliated parties expense adjustment on the basis of actually incurred. In general, when a in both the home and export markets, resale prices is incorrect. Rather, the respondent relies on an expense Koyo’s denominator includes sales record demonstrates that, for sales to allocation to calculate its per-unit values which reflect both transfer and affiliated home market parties, Koyo adjustment amounts, we require that resale prices. Since Koyo Seiko’s calculated the adjustment on the basis allocation to reflect the manner in customer in the United States is Koyo of the transfer price between Koyo Seiko

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00012 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2569 and the affiliated home market Koyo calculated its short-term interest calculation of a single average number customer. In addition, rather than argue rate and its credit expense ratios. After of days in inventory has the effect of that all transfer values included in reviewing supporting documentation for overstating the ICC incurred for those Koyo’s denominator should be excluded each of several loans we selected from sales made by the consolidated from the allocation methodology, Koyo’s credit calculation worksheets, distributors and understating the ICC Timken limits its argument to only U.S. we were satisfied that Koyo had incurred for sales made by Koyo Seiko. transfer prices and fails to demonstrate accurately reported its credit expense. Therefore, because information exists on why U.S. transfer values are an While those entries identified by the record which would allow us to improper factor in the denominator’s Timken were not among those chosen, calculate home market ICC which more calculation while home market and we emphasize that the purpose of closely reflect the actual experience of third-country transfer values are not. verification is not to conduct an Koyo Seiko and its consolidated Finally, the record does not contain, exhaustive review of a response. Rather, distributors, we have recalculated and Timken has not provided, any verification is intended to serve as a Koyo’s reported home market ICC for evidence demonstrating that the transfer spot check to verify the overall integrity these final results. Please see our Final prices Koyo reported between Koyo of a response (see, e.g., Bomont Results Analysis Memorandum for Seiko and KCU are unreliable. Rather, Industries v. United States, 14 CIT 208, Koyo, dated January 7, 1998 for a the record indicates that these transfer 209, 733 F. Supp. 1507 (1990)). Absent detailed explanation of our prices were maintained by KCU, for any unreconciling information regarding recalculation. purposes other than antidumping Koyo’s calculation of its short-term Comment 15: Timken argues that proceedings, within the ordinary course borrowing rate, we were satisfied that Koyo improperly excluded a certain of business. Furthermore, we note that this expense was accurately reported. category of expenses from its reported antidumping proceedings are only one Furthermore, we are generally satisfied total export selling expenses. of the factors a respondent must account with Koyo’s explanation of and the Koyo responds that its methodology for in setting its transfer prices; transfer reliability of those interest amounts properly excludes these expenses and prices are also subject to possible which Timken claims should be contends that Timken’s argument is Internal Revenue Service audits for U.S. removed from the interest rate based on a misunderstanding of the tax purposes and to U.S. Customs’ calculation and can find no evidence on home market verification report and of review. Therefore, based on the above the record that indicates these interest Koyo’s August 26, 1997 letter in reasons, we do not agree with the amounts should be excluded from the response to Timken’s pre-preliminary petitioner that Koyo’s basic allocation calculation of credit; accordingly, we comments. methodology is unreasonable. have not done so for these final results. Department’s Position: We disagree Therefore, for these final results, while Comment 14: In its case brief Timken with Timken. We have reviewed the we have recalculated Koyo’s originally argued that Koyo allocated its home home market verification report and the reported allocation ratio to exclude market inventory carrying costs (ICC) relevant exhibit and have determined home market OEM sales, we have made over a sales value which improperly that Koyo correctly excluded this no other changes to Koyo’s overall excluded sales to its distributors. expense category from its total export allocation methodology. However, Timken subsequently selling expenses. The proprietary nature Comment 13: Timken argues that the withdrew that argument. In addition, of this argument prevents us from Department should recalculate Koyo’s Timken also suggested that the discussing it in further detail here. For home market average short-term Department should recalculate Koyo’s more information, refer to the borrowing rate to exclude interest ICC ratio using the following proprietary version of our final results amounts which it maintains are methodology: (1) calculate separate ICC analysis memorandum for Koyo, dated aberrational and unsupported by the ratios for Koyo Seiko sales and sales by January 7, 1998. record. Timken asserts that home its wholly-owned distributors; (2) apply 3. Adjustments to United States Price market verification documents detailing the Koyo Seiko ICC ratio to all of its loans taken by Koyo during the POR sales; and (3) apply both Koyo Seiko’s Comment 16: Timken argues that the contain two loan entries which do not and the distributors’ ICC rates to the Department should apply facts available list certain relevant information affiliated distributors’ sales. Timken with respect to Koyo’s pre-sale U.S. regarding the terms and details of these contends that this methodology would inland freight because Koyo failed to loans for which the reported interest produce a more accurate result because demonstrate that the expenses attributed was incurred. merchandise stored by Koyo Seiko and to subject merchandise are reasonably Koyo argues that Timken’s assertions by its distributors remains in inventory accurate. Timken is concerned that are misplaced because they are based on for different average periods of time. Koyo’s allocation methodology is a misunderstanding of the credit Koyo did not specifically comment on distortive because (1) the total reported verification exhibit. Koyo argues that Timken’s proposed method for expenses include those associated with the interest amounts Timken identified allocating ICC. shipping merchandise from Japan, as aberrational do not constitute Department’s Position: We agree with Europe, and from Koyo Corporation of payments on specific loans, but rather Timken. Exhibit B–9 of Koyo’s U.S.A. Manufacturing Division (KCUM) reflected interest paid by Koyo Seiko questionnaire response indicates that, to to KCU, and (2) Koyo allocated freight under some other arrangement. Citing calculate its reported home market ICC, costs based on the weight of all sales, the Department’s home market Koyo derived an overall average number including those sales for which KCU verification report, Koyo asserts that the of days using inventory balance and apparently did not incur a freight Department has already verified the total sales figures for both Koyo Seiko expense. accuracy of Koyo’s reported credit and its consolidated distributors. Koyo maintains that Timken expense ratio and found no However, because there were significant incorrectly assumes that this expense is discrepancies. differences between the inventory allocated on the basis of sales value Department’s Position: We disagree balances and total sales values for Koyo when it was actually allocated on the with Timken. During verification we Seiko as compared to those for its basis of the weight of the merchandise carefully reviewed the manner in which consolidated distributors, Koyo’s shipped. Koyo further maintains that

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00013 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 2570 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices allocating this expense based on weight was sold. NTN claims that selling of. . . the subject merchandise sold in is not distortive because the cost to ship expenses also differed by LOT and had the United States and the foreign like a given weight of non-scope and scope an effect on prices but that this product sold in the exporting country (if merchandise is identical. Koyo also difference does not account entirely for Commerce requested this information in argues that its allocation methodology is the different price levels. NTN further order to determine the normal value and well-established, has been repeatedly emphasizes that section 772 (a) and (f) the constructed export price)’’. verified, and was again verified without of the Act expresses a preference for the Therefore, NTN claims that the discrepancy at the Department’s U.S. profit calculations to be performed as Department has calculated CEP profit in verification for these reviews. specifically as possible and on the a manner contrary to that specified in Department’s Position: We disagree narrowest basis as possible. Finally, the statute. with Timken. Koyo calculated its U.S. NTN asserts that because the Department’s Position: We disagree inland pre-sale freight expense ratio by Department calculated constructed with NTN. The Department’s September dividing KCU’s total POR freight-in value (CV) profit on a LOT-specific basis 4, 1997 policy bulletin regarding the expenses (associated with shipping and matched U.S. and home market calculation of CEP profit indicates that merchandise from railheads to KCU’s sales by LOT, the calculation of CEP section 772(f)(2)(D) of the Act clearly warehouses) as reported in its financial profit should also take LOT into states that the calculation of total actual statements by the total gross weight account. profit is to include all revenues and shipped to U.S. customers of all Timken argues that the Department expenses resulting from the products. Koyo then multiplied the rejected the identical argument by NTN respondent’s EP sales as well as from its resulting freight-in factor by the unit in its final results of the sixth review of CEP and home market sales. The basis gross weight to arrive at its reported pre- the AFBs case, stating that ‘‘neither the for total actual profit is the same as the sale freight amounts. During statute nor the SAA require us to basis for total expenses under section verification, not only did we carefully calculate CEP profit on a basis more 772(f)(2)(C) of the Act. The first examine Koyo’s methodology for specific than the subject merchandise as alternative under this section states that, allocating its U.S. pre-sale inland freight a whole. * * * [t]he statute and SAA, for purposes of determining profit, the expenses, but we tied KCU’s reported by referring to ‘‘the’’ profit, ‘‘total actual term ‘‘total expenses’’ refers to all total pre-sale freight expenses directly to profit,’’ and ‘‘total expenses’’, imply that expenses incurred with respect to the its financial statements and found no we should prefer calculating a single subject merchandise sold in the United discrepancy. In addition, we verified profit figure’’ (see AFBs VI at 2081 and States (as well as home market that the gross weight reported by Koyo 2125). For these same reasons, Timken expenses). Thus, where the respondent was accurate (see Koyo Seiko U.S. contends that the Department should makes both EP and CEP sales to the Verification Report, August 7, 1997, at again reject NTN’s assertion in this TRB United States, sales of the subject 13). review. merchandise would encompass all such As noted above, the expense total Department’s Position: We agree with transactions. Therefore, because NTN appearing in Koyo’s numerator Timken. Neither the statute nor the SAA had EP sales, we have included these encompasses POR freight-in expenses requires us to calculate CEP profit on a sales in the calculation of CEP profit. incurred when shipping merchandise basis more specific than the subject Comment 19: NTN argues that the (whether scope or non-scope) from merchandise as a whole. See AFBs VI at Department’s decision to ignore Europe and Japan to KCU’s sales 2125. Respondent’s suggestion would adjustments to its U.S. indirect selling warehouses, and from KCUM to KCU. not only add a layer of complexity to an expenses for expenses incurred when Similarly, the denominator includes the already complicated exercise with no financing cash deposits for antidumping POR gross weight of all such sales for increase in accuracy, but a portion of duties is contrary to both the which these expenses were incurred. the CEP-profit calculation would be Department’s position in past reviews We have examined the record and are more susceptible to manipulation. and judicial precedent, and that it satisfied that Koyo’s records do not Therefore, for these final results we inappropriately denies an adjustment allow it to report these expenses on a have not changed our CEP profit for expenses incurred solely as a result more specific basis. Additionally, while calculation. of the existence of an antidumping Timken asserts that KCU apparently Comment 18: NTN asserts that the order. allocates U.S. inland pre-sale freight Department had no basis for including NTN asserts that the CIT has expense totals to certain sales for which EP sales in the calculation of the CEP previously held that these imputed KCU did not pay for freight transfers profit adjustment and argues that interest expenses do not constitute from KCUM to KCU, we can find no section 772 (a) and (f) of the Act clearly selling expenses, and cites PQ Corp. v. evidence on the record indicating that state that the adjustment for profit to United States, 11 CIT 53, 67 (1987) (PQ KCU did not incur all expenses CEP sales is to be based on the expenses Corp), in which the CIT stated, ‘‘if associated with shipping merchandise incurred in the United States as a deposits of estimated antidumping from KCUM to KCU’s sales warehouse. percentage of total expenses. NTN duties entered into the calculation of Because we are satisfied that Koyo’s contends that section 772(d) of the Act present dumping margins, those allocation is as specific as possible, and contains no provision for the inclusion deposits would work to open up a because the numerator and denominator of export price expenses and that the margin where none otherwise exists.’’ properly reflect all shipments and all canon of statutory construction, NTN claims that the rationale in PQ expenses, we have not resorted to the expressio unius est exclusio alterius, Corp applies similarly to interest use of facts available for these final indicates that the absence of such a incurred when financing cash deposits, results. provision precludes its inclusion. NTN and asserts that if the Department were Comment 17: NTN argues that the further asserts that the SAA similarly to allow interest expenses from previous Department should have calculated CEP states that ‘‘the total expenses are all reviews to affect the calculation of profit on a level-of-trade (LOT)-specific expenses incurred by or on behalf of the margins for current reviews, it would basis. NTN claims that the Department foreign producer and exporter and the precipitate an unending cycle which noted that prices differed significantly affiliated seller in the United States with would prevent the Department from based on the LOT at which merchandise respect to the production and sale revoking an order.

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NTN maintains that the CIT, in that we should deduct from U.S. price. associated with participation in Timken v. United States, Slip Op. 97– To do so would involve a circular logic dumping cases, we do not see a sound 87 (July 3, 1997)(Timken), upheld that could result in an unending spiral basis for extending this exemption to NTN’s adjustments to U.S. indirect of deductions for an amount that is financing expenses allegedly associated selling expenses for interest incurred intended to represent the actual offset with financing cash deposits. By the when financing cash deposits, and notes for the dumping (see, e.g., Antifriction same token, for the reasons stated above, that the Department itself argued in Bearings (Other Than Tapered Roller we would not allow an offset for support of such an adjustment. NTN Bearings) and Parts Thereof from financing the payment of legal fees argues that, as set forth in Timken, France, et. al.; Final Results of associated with participation in a interest expenses attributable to cash Antidumping Duty Administrative dumping case. deposit financing are not incurred in the Reviews, 57 FR 28360 (June 24, 1992) We see no merit to the argument that, course of selling merchandise in the (AFBs II); see also, e.g., Certain Cut-to- since we do not deduct cash deposits United States. Length Carbon Steel Plate from from U.S. price, we should also not NTN also references the CIT’s Germany; Final Results of Antidumping deduct financing expenses that are decision in Federal Mogul Corp. v. Duty Administrative Review, 62 FR arbitrarily associated with cash United States, Slip Op. 96–163 18390, 18395 (April 17, 1995)). We have deposits. To draw an analogy which (December 12, 1996), claiming that the also declined to deduct legal fees shows why this logic is flawed, we also CIT explicitly rejected the petitioner’s associated with participation in an do not deduct corporate taxes from U.S. argument that interest expenses antidumping case, reasoning that such price; however, we would not consider constituted selling expenses because expenses are incurred solely as a result a reduction in selling expenses to reflect they were incurred as a result of NTN’s of the existence of the antidumping duty financing alleged to be associated with ‘‘decision’’ to engage in dumping. order (see AFBs II). Underlying our logic payment of such taxes. Additionally, argues NTN, the Court in both these instances is an attempt to Finally, we also determine that we rejected the petitioner’s argument that distinguish between business expenses should not use an imputed amount that allowing such an adjustment was that arise from economic activities in would theoretically be associated with duplicative of interest paid on the the United States and business expenses financing of cash deposits. There is no refund of excess cash deposits. that are direct, inevitable consequences real opportunity cost associated with Timken responds that the Department of an antidumping duty order. cash deposits when the paying of such correctly rejected NTN’s claim for a Financial expenses allegedly deposits is a precondition for doing downward adjustment to U.S. indirect associated with cash deposits are not a business in the United States. Like selling expenses for interest incurred direct, inevitable consequence of an taxes, rent, and salaries, cash deposits when financing cash deposits. Timken antidumping duty order. As we stated in are simply a financial obligation of argues that allowing such an adjustment the preliminary results at 47455: doing business. Companies cannot serves as an incentive to respondents to ‘‘[m]oney is fungible. If an importer choose not to pay cash deposits if they prolong litigation to avoid actual acquires a loan to cover one operating payment of duties, which is contrary to cost, that may simply mean that it will want to import nor can they dictate the the purpose of the interest provision set not be necessary to borrow money to terms, conditions, or timing of such forth in the Trade Agreements Act of cover a different operating cost.’’ payments. By contrast, we impute credit 1979, which is to reduce incentives to Companies may choose to meet and inventory carrying costs when delay payment of duties owed. obligations for cash deposits in a variety companies do not show an actual Department’s Position: We agree with of ways that rely on existing capital expense in their records because Timken that we should deny an resources or that require raising new companies have it within their adjustment to NTN’s U.S. indirect resources through debt or equity. For discretion to provide different payment selling expenses for expenses which example, companies may choose to pay terms to different customers and to hold NTN claims are related to financing of deposits by using cash on hand, different inventory balances for different cash deposits. obtaining loans, increasing sales markets. We impute costs in these The statute does not contain a precise revenues, or raising capital through the circumstances as a means of comparing definition of what constitutes a selling sale of equity shares. In fact, companies different conditions of sale in different expense. Instead, Congress gave the face these choices every day regarding markets. Thus, our policy on imputed administering authority discretion in all their expenses and financial expenses is consistent; under this this area. It is a matter of policy whether obligations. There is nothing inevitable policy, the imputation of financing costs we consider there to be any financing about a company having to finance cash to actual expenses is inappropriate. expenses associated with cash deposits. deposits and there is no way for the Comment 20: Timken contends that We recognize that we have, to a limited Department to trace the motivation or the Department should recalculate extent, removed such expenses from use of such funds even if it were. NTN’s U.S. credit expense because NTN indirect selling expenses for such In a different context, we have made reported a customer-specific average financing expenses in past reviews of similar observations. For example, we credit expense rather than a transaction- this finding, this order, and other stated that ‘‘debt is fungible and specific credit expense. Timken argues orders. However, we have reconsidered corporations can shift debt and its that NTN has provided the necessary our position on this matter and have related expenses toward or away from information on the record to recalculate now concluded that this practice is subsidiaries in order to manage profit’’ a transaction-specific credit expense. inappropriate. Further, we note that the (see Ferrosilicon from Brazil, 61 FR at Further, Timken claims that, based on a Court’s affirmance of our prior policy 59412 (regarding whether the comparison of the credit amounts does not preclude us from following this Department should allocate debt to reported by NTN to those credit new, reasonable policy. specific divisions of a corporation)). amounts which are derived when using We have long maintained, and So, while under the statute we may NTN’s reported transaction-specific continue to maintain, that antidumping allow a limited exemption from sales payment dates, it is apparent that duties, and cash deposits of deductions from U.S. price for cash NTN’s customer-specific methodology antidumping duties, are not expenses deposits themselves and legal fees produces distortive results.

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NTN argues that the Department has merchandise in question was shipped question or that NTN performed upheld its methodology in several past directly from the manufacturer to the activities that exceeded those normally proceedings and has verified the unrelated buyer, without being associated with the role of a related accuracy of NTN’s data, not only in this introduced into the inventory of the agent in EP transactions. Moreover, we review, but in previous reviews as well. related selling agent; (3) this was a verified NTN’s response for this review Department’s Position: We agree with customary commercial channel for sales and found that NBCA’s functions with Timken with regard to NTN’s CEP sales. of this merchandise between the parties respect to EP sales were limited to being We have data on the record which involved; and (4) the related agent in the a communications link and a processor allows us to calculate a transaction- United States acted only as a processor of documents. Therefore, we have not specific credit expense for CEP sales. of the sales-related documentation and reclassified NTN’s EP sales for these Therefore, we have recalculated NTN’s a communication link with the final results. credit expense using the dates of unrelated U.S. buyer. Timken argues Comment 23: Due to the proprietary payment which NTN reported. that, when the activities of the related nature of the comments we received Comment 21: Timken contends that selling agent exceed the functions regarding NTN USA’s expenses, we are NTN improperly excluded certain normally associated with a related agent unable to state the concerns expressed expenses from its reported U.S. indirect involved with EP sales, the sale cannot by both NTN and Timken and our selling expenses and states that, for the be classified as an EP sale. For example, position with response to this issue. purpose of final results, the Department petitioner asserts that the Department’s Therefore, for a detailed explanation of should deduct these expenses from CEP. Antidumping Manual (1994) states that this issue and our position, please see NTN argues that not only has the ‘‘the extent of the related selling agent’s the proprietary analysis memorandum Department rejected Timken’s claim in normal functions, such as the for NTN dated January 7, 1998. past reviews, determining that NTN’s administration of warranties, reporting methodology was accurate, 4. Cost of Production (COP) and advertising, extensive in-house Constructed Value (CV) but in this current review the technical assistance, and the Department thoroughly verified this supervision of further manufacturing, Comment 24: NTN claims that the methodology and again found no may indicate that the agent is more than Department’s preliminary results discrepancies. the ‘‘paper-pusher’’ envisioned for adjustment to COP and CV for affiliated- Department’s Position: We agree with purchase price sales’’ (see Antidumping party inputs is distortive and should be the respondent. As NTN has explained Manual, Chapter 7 at 4–5). Timken eliminated. NTN argues that the and as we have repeatedly accepted, claims that evidence on the record Department’s adjustment, which was because certain of its U.S. expenses indicates that NTN’s U.S. subsidiary, calculated based on sampled were incurred solely for non-scope NBCA, performed numerous functions transactions, does not accurately reflect merchandise, in order to ensure an which exceeded those normally the experience of all sales and, by accurate allocation of its U.S. expenses, associated with a related agent involved applying the results of the sample to the NTN first removed all such expenses in EP sales transactions. As a result, total population of affiliated-party from its pool of U.S. expenses. The Timken concludes, the Department purchases, the Department, in essence, remaining expenses which were should reclassify all of NTN’s reported used facts available when sufficient incurred for either scope or non-scope EP sales as CEP sales. information was clearly available on the merchandise, but cannot be specifically NTN argues that, as the Department record. NTN further argues that the linked to either scope or non-scope has verified in this current and in Department misinterpreted section merchandise by NTN, were then previous TRB reviews, (1) there were no 773(f)(2) and (3) of the Act by allocated to scope and non-scope sales negotiations between its determining that an adjustment was merchandise. We have consistently unaffiliated EP customer and NBCA, (2) necessary. NTN claims that section determined this methodology to be NBCA did not receive any purchase 773(f)(2) of the Act addresses the reasonable not only in past reviews of orders from the unaffiliated customer, circumstances under which the these TRB cases but in past reviews of (3) NBCA did not generate any invoices Department should disregard some AFB cases as well (see 92/93 TRB Final for unaffiliated customers, (4) NBCA transactions, but it does not mention the and AFBs VII). In addition, for this never took title to the merchandise in Department’s practice of choosing the review, we verified NTN’s U.S. question, (5) NBCA never carried the highest of either the cost of production, expenses and found no discrepancies merchandise in its inventory, and (6) transfer prices, or market prices when (see Department’s U.S. Verification NBCA never acted as the importer of calculating COP or CV. NTN Report for NTN, June 3, 1997, at 10) record. In summary NTN states, these additionally claims that Section (NTN U.S. Report). Because NTN has sales were clearly made in Japan and 773(f)(3) of the Act requires the not altered its methodology for this clearly met the Department’s definition Department to have reasonable grounds current review and because the record of EP sales transactions. Furthermore, to believe that inputs are being sold at in this review indicates no reason for a NTN adds, the record demonstrates that less than the COP before it may use COP different methodology to be used, we NBCA acted solely as a communications information. NTN contends that, have again accepted this methodology link and a processor of documents with because the record demonstrates that for these final results. respect to U.S. EP sales. affiliates sold many inputs to NTN Comment 22: Timken alleges that Department’s Position: We agree with above COP, it is incorrect for the certain of NTN’s claimed EP NTN. Timken lists the criteria the Department to adjust the costs for all transactions are actually CEP Department considers when deciding TRBs which contained affiliated-party transactions when examined in light of whether sales should be classified as EP inputs. the criteria for defining EP transactions or CEP. Of the criteria outlined, NTN also asserts that, assuming the as outlined in the Department’s however, the only area that Timken Department was correct in making an Antidumping Manual. Petitioner states questions is the activities of NBCA’s adjustment for affiliated-party inputs, it that EP sales must meet the following liaison office. As NTN notes, there is no should use a more reasonable criteria; (1) the sales transaction occurs information on the record suggesting recalculation methodology such as the prior to importation; (2) the that NBCA is the seller for the sales in weighted-average difference between

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COP and transfer price for all inputs discretion depending on the facts and account for the difference between the sold to NTN. According to NTN, by circumstances of the case. In this transfer price and market value for adjusting all sales which had an instance, NTN provided the transfer inputs purchased from affiliated parties affiliated-party input, the Department prices and cost information for its major based on the adjustment factor used in added additional profit to those inputs inputs. We examined this information the preliminary results. which already included profit. on a sample basis and determined that Comment 25: Petitioner states that the Therefore, NTN concludes that the the company’s reported amounts were Department should ensure that the Department should use NTN’s affiliated- not less than its respective COP, as calculation of COP and CV includes party input data as reported. required by section 773(f)(3) of the Act. certain non-operating expenses (e.g., The petitioner contends that the NTN also provided a market value for certain write-offs, depreciation of idle Department acted in accordance with identical or similar inputs obtained equipment, foreign currency gains and section 773(f)(2) and (3) of the Act and from or sold to non-affiliated parties to losses, etc.) NSK, on the other hand, that NTN failed to demonstrate that the establish that the transfer price was contends that the exclusion of these Department’s adjustments produced comparable to the market price. We then non-operating expenses is permissible distorted results. According to the examined this information on a sample and is based on past Department petitioner, section 773(f)(2) and (3) of basis and determined that in certain practice. the Act states that the Department may instances the company’s reported Department’s Position: For the final use information available in transfer prices did not reflect a market results we have relied on NSK’s circumstances such as those which exist price, as required by section 773(f)(2) of reported general expense factor that with respect to NTN in this review and the Act. As noted on page 24 of the June excludes certain non-operating income that the Department has the right to use 13, 1997 cost verification report, NTN and expenses. We reviewed the discretion in selecting the highest of (1) could not explain the difference information on the record and noted the transfer price from an affiliated between the transfer price and the that NSK included depreciation of idle party, (2) the COP for the input, or (3) market price. Thus, for the preliminary equipment in its COP. As for the other the price from the unaffiliated party. results we used the results of our non-operating expenses identified by Timken disputes NTN’s interpretation samples to increase the manufacturing the petitioner, we note that NSK of section 773(f)(3) of the Act, stating costs of the control numbers NTN excluded them from the calculation of that the statute does not require the identified as including related-party COP. However, these non-operating Department to act only if it is able to inputs. expenses are minor expenses. Thus, determine that all inputs have been We also disagree with NTN’s including them in the calculation of the priced below COP. Rather, Timken contention that it is not appropriate for dumping margin has a de minimis effect argues, the Department may act when it the Department to rely on section on the calculation of NSK’s margin. has reasonable grounds to believe or 773(f)(2) and (3) of the Act in this Comment 26: NSK argues that, in suspect that an amount represented as instance. We note that section 351.407 accordance with section 773(f) of the the value of an affiliated-party input is (a) and (b) of the Final Rule, at 27296 Act, the Department may only substitute less than the COP of the input. and 27413, sets forth certain rules that affiliated-party costs for a respondent’s Moreover, the petitioner asserts, the are common to the calculation of CV reported transfer prices for affiliated- Department acted reasonably in making and COP. This section states that for the party inputs for purposes of sections its preliminary adjustment because it purpose of section 773(f)(3) of the Act 773(b) and 773(e) of the statute. had limited data regarding NTN’s the Department will determine the value However, NSK asserts, in the affiliated-party inputs. Thus, the of a major input purchased from an preliminary results the Department also Department reasonably determined that affiliated person based on the higher of: substituted affiliated-party cost data the problem it had identified was likely (1) the price paid by the exporter or when it determined whether the foreign to affect all models with affiliated-party producer to the affiliated person for the like product was commercially inputs. Finally, Timken claims, for each major input; (2) the amount usually comparable to each U.S. model, when it TRB part number where the COP of the reflected in sales of the major input in calculated a difference-in merchandise affiliated-party input was greater than the market under consideration; or (3) (difmer) adjustment for non-identical the transfer price, the Department the cost to the affiliated person of U.S. and home market matches, and should increase COP and CV by an producing the major input. when it recalculated NSK’s reported amount equal to the difference between Furthermore, we have relied on this U.S. inventory carrying costs prior to transfer price and the COP. methodology in Final Results of deducting this expense from CEP. Citing Department’s Position: We disagree Antidumping Duty Administrative Ad Hoc Comm, of AZ–NM–TX–FL with NTN that our adjustment to Review; Certain Corrosion-Resistant Producers of Grey Portland Cement v. increase certain transfer prices to equal Carbon Steel Flat Products and Certain United States, 13 F.3d 398, 401 (Fed. a market price is flawed. The Cut-to-Length Carbon Steel Plate From Cir. 1994), NSK contends that where Department tested affiliated-party Canada, 62 FR 18449, 18457 (April 15, Congress has included specific language inputs on a sample basis, and applied 1997), AFBs VI at 2115, and the 92/93 in one section of the statute but has the results of the sample to the total TRB Final. In each of these review’s omitted it from another, related section population of affiliated-party final results, the Department determined of the same statute, it is generally transactions. Our adjustment relied on that in the case of a transaction between presumed that Congress intended the affiliated-party factors provided by NTN affiliated persons involving a major omission. Therefore, NSK argues, in its COP and CV database and it input, we will use the highest of the because the statutory authority to accounted for the fact that only certain transfer price between the affiliated determine whether the foreign like inputs obtained from certain affiliates party, the market price between product is commercially comparable to did not reflect a market value. The unaffiliated persons involving the major the U.S. merchandise, to adjust NV for preamble of section 351.407 of the Final input, or the affiliated supplier’s cost of difmer, and to adjust CEP for U.S. Rule at 27296 and 27413 leaves producing this input. inventory carrying costs is found in conducting an arm’s-length test of the Accordingly, for the final results we sections 771(16), 773(a)(6), and 772(d) transfer price to the Department’s adjusted NTN’s reported costs to of the Act, respectively, and not in

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Hence, Timken states, and home market merchandise. antidumping law clearly does not Congress has again implicitly delegated Likewise, when calculating a difmer permit the Department to use affiliated- authority to the Department to formulate adjustment to NV in accordance with party cost data to determine commercial an appropriate methodology and the section 773(b) of the Act, it has been our comparability, to calculate the difmer Department reasonably determined that consistent policy to calculate the adjustment, or to calculate an it was appropriate to use NSK’s adjustment as the difference between adjustment to CEP for inventory affiliated-party cost data when the product-specific VCOMs for the U.S. carrying costs. Therefore, NSK calculating this adjustment. and home market merchandise concludes, the Department should rely Timken also asserts that section compared (see, e.g., 92–93 TRB Prelim at on NSK’s reported cost data without 772(d) of the Act does not detail the 57631). Furthermore, we have permitted regard to affiliated-supplier cost data in methodology the Department is to use to respondents to calculate their reported all instances except where specifically calculate ICC adjustments to CEP but ICC on the basis of TCOM. authorized by the statute. only lists the kinds of expenses that may As a result, if we determine a NSK also asserts that the substitution be deducted from CEP. Therefore, component of a respondent’s COP and of affiliated-party costs when Timken argues, Congress has once again CV is distortive for one aspect of our determining commercial comparability implicitly delegated authority to the analysis, it is reasonable to make the constitutes an alteration of the Department to select an appropriate same determination with respect to Department’s model-match methodology to calculate ICC and other those other aspects of our margin methodology and prevents respondents expenses. calculations where we relied on the from taking advantage of the Finally, Timken argues, the identical cost data. To do otherwise Department’s TRB Option II reporting Department’s substitution of affiliated- would not only produce distortive methodology. NSK argues that it is not party cost data when determining the results but would be contrary to our commercial comparability of NSK’s only difficult for a respondent to obtain mandate to administer the dumping home market comparison merchandise affiliated-party cost data in time to laws as accurately as possible. integrate it into the model match, but it is not likely to have a significant impact NSK incorrectly asserts that section is often the case that an affiliated on the Department’s model matches. 773(f) of the Act specifically limits supplier refuses to provide the Moreover, Timken concludes, not only substitution of affiliated-party cost data respondent with its cost data. As a are respondents required to supply data to our analysis under sections 773(b) result, NSK contends, through no fault on multiple models for matching under and 773(e). In fact, section 773(f) of its own, a respondent’s inability to the TRB Option II reporting indicates that for purposes of obtain affiliated-party cost data may methodology, but any respondent subsections (b) and (e) we may result in the inability to compare concerned about the potential effect on appropriate models and in the the model-match may revise its substitute certain cost data but 773(f) Department’s use of total facts available. submission accordingly. does not prohibit this kind of Timken argues that, contrary to NSK’s Department’s Position: We agree with substitution for other purposes. None of assertions, there is nothing in the Timken. In our preliminary results for the sections of the statute (771(16), statutory provisions cited by NSK which NSK, in accordance with section 773(f) 772(d), and 773(a)(6)), for which NSK restricts the Department’s discretion to of the Act, we recalculated NSK’s argues that we may not substitute use adjusted cost data for purposes reported TRB-specific COP and CV to affiliated-party costs, explicitly other than sections 773(b) and 773(e) of include the COP of an affiliated-party precludes the incorporation of corrected the statute. For example, Timken input if the transfer price NSK reported cost data. For example, the only maintains, section 771(16) of the Act, for that input was less than the COP for guidance provided by section 771(16) of the ‘‘model-match’’ provision, only that input. We note that COP and CV are the Act is that the comparison instructs the Department to select composed of several components. The merchandise be ‘‘like’’ the U.S. subject comparison merchandise that is ‘‘like’’ adjustment we made for NSK’s merchandise in terms of component the U.S. subject merchandise in affiliated-party inputs is actually an material and uses and ‘‘approximately component material and uses and is adjustment to its reported material equal in commercial value.’’ Therefore, ‘‘approximately equal in commercial costs. Because material costs are a as Timken points out, section 771(16) of value,’’ and does not specify the component of the variable cost of the Act does not specify a particular methodology by which the Department manufacture (VCOM) and the total cost methodology for determining is to select the similar comparison of manufacture (TCOM), and these in appropriate matches. Rather, the statute merchandise or determine commercial turn are components of COP and CV, implicitly delegates the selection of an comparability. Rather, citing the CAFC’s when we adjusted NSK’s reported appropriate methodology to the decision in Koyo Seiko v. United States, material costs we not only recalculated Department. 66 F.3d 1204 (Fed. Cir. 1995), Timken its COP and CV, but we effectively Likewise, section 773(a)(6) of the Act contends that, because Congress has recalculated VCOM and TCOM grants us the same discretion to implicitly delegated authority to the components of COP and CV as well. determine a suitable method to calculate Department to determine and apply a NSK’s assertions overlook the fact that a difmer adjustment and does not model-match methodology, it was not the Department does not rely on a restrict our selection of an appropriate inappropriate or unlawful for the respondent’s reported costs solely for methodology to any particular Department to rely on affiliated-party the calculation of COP and CV. We also approach. In addition, with respect to cost data in making its commercial use cost information in a variety of other our recalculation of NSK’s U.S. ICC, comparability determination for NSK. aspects of our margin calculations. For section 772(d) of the Act only specifies Likewise, Timken argues that the example, when determining the what adjustments are to be made to provision which underlies the commercial comparability of the foreign determine CEP and does not provide Department’s difmer adjustment, section like product in accordance with section details regarding the precise

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Miscellaneous Comments Related to from CEP only those expenses associated with economic activities in antidumping duties have been absorbed Duty Absorption, Sample Sales, Level of by a foreign producer or exporter subject Trade, and the Arm’s-Length Test the United States which occurred with respect to sales to the unaffiliated U.S. to the order if the subject merchandise Comment 27: Timken contends that customer. We found no information on is sold in the United States through an the Department’s decision not to make the record for this review period to importer who is affiliated with such an adjustment to CEP to account for indicate that the indirect selling foreign producer or exporter, and indirect selling expenses and ICC expenses and ICC for the respondents authorizes this type of investigation incurred in Japan because expenses that were incurred in their respective during an administrative review were not related specifically to home markets were incurred on sales to initiated two years or four years after commercial activity in the United States the unaffiliated customer in the United publication of an order. was incorrect. Timken argues that under States. For transition orders as defined in pre-URAA law the Department section 751(c)(6)(C) of the Act (i.e., deducted all selling expenses incurred In addition, it is clear from the SAA that under the new statute we should orders in effect as of January 1, 1995), in exporting to the United States and section 351.213(j)(2) of the Department’s that the new law was not intended to deduct from CEP only those expenses associated with economic activities in regulations provides that the change the Department’s practice. Department will make a duty-absorption Timken contends that the SAA clearly the United States. The SAA also indicates that ‘‘constructed export price determination, if requested, for any indicates that Congress did not intend to administrative review initiated in 1996 change the old law insofar as the is now calculated to be, as closely as possible, a price corresponding to an or 1998. See 62 FR 27296, 27394 (May Department’s prior treatment of selling 19, 1997). Although these antidumping expenses was concerned. Further, export price between non-affiliated exporters and importers’’ (see SAA at regulations are not binding upon the Timken asserts that under the Department for these TRB reviews, they Department’s new regulations (19 CFR 823). Therefore, we have deducted from do constitute a public statement of how 351.402(b), 62 FR at 27411), CEP should CEP only those expenses associated the Department expects to proceed in be adjusted if the expenses in question with commercial activities in the United construing section 751(a)(4) of the Act. are related to the sale to the unaffiliated States. Timken’s reference to the SAA to This approach ensures that interested customer in the United States but not if support the proposition that the new parties will have the opportunity to they are only associated with the sale to law is not intended to change our request a duty-absorption determination the U.S. affiliate. Therefore, Timken practice in this regard is misplaced. prior to the time of the sunset review of argues that the Department should Timken cites various provisions of the the order under section 751(c) of the Act implement the SAA and the SAA which state that our practice with on entries for which the second and understanding Congress intended by respect to ‘‘assumptions’’ would not deducting export selling expenses change. The SAA explains that fourth years following an order have incurred in Japan from the calculation ‘‘assumptions’’ are selling expenses of already passed. Because this finding and of CEP. the purchaser for which the foreign order on TRBs have been in effect since NTN, NSK, Koyo, and Fuji assert that seller agrees to pay (see SAA at 824). 1976 and 1987, these are transition the SAA fully supports the Thus, if the home market producer orders in accordance with section Department’s decision not to adjust CEP agrees to pay for the affiliated importer’s 751(c)(6)(C) of the Act; therefore, based to account for indirect selling expenses cost of advertising in the U.S. market, on the policy stated above, the and ICC incurred in Japan and cite to the Department would deduct such an Department will consider a request for section 772(d) of the Act which states expense as an ‘‘assumption.’’ It should a duty-absorption determination during that ‘‘constructed export price will be be noted that assumptions are different a review initiated in 1996 or 1998. On calculated by reducing the price of the than selling expenses incurred in the December 11, 1996, Timken requested first sale to an unaffiliated customer in home market in selling to the affiliated that the Department determine, with the United States by the amount of the importer, which are not incurred ‘‘on respect to various respondents, whether following expenses (and profit) behalf of the buyer’’ (i.e., the affiliated antidumping duties had been absorbed associated with economic activities importer). Rather, the exporter incurs during the POR. Since these reviews occurring in the United States.’’ SAA at such expenses on its own behalf, and for were initiated in 1996 and such a 823. Further, respondents argue that the its own benefit, in order to complete the request was made, we have made a Department has used the same sale to the affiliated importer (see AFBs duty-absorption determination as part of methodology in Tapered Roller Bearings VI at 2124). In this case respondent’s these administrative reviews. and Parts Thereof, Finished and reported selling expenses at issue were In our preliminary results of review Unfinished, From Japan, and Tapered not associated with commercial activity we calculated the percentage of sales by Roller Bearings, Four Inches or Less in in the United States. Rather, the a U.S. affiliate with dumping margins Outside Diameter, and Components expenses at issue were incurred prior to for each exporter. We stated that, with Thereof, From Japan; Final Results of the commercial activity in the United respect to those companies (with Antidumping Duty Administrative States. Therefore, because the affiliated importer(s)) that had dumping Reviews and Termination in Part, 62 FR respondents’ reported export selling margins, we would rebuttably presume 11825, 11834 (March 13, 1997) (94–95 expenses and ICC did not represent that the duties will be absorbed for TRB Final) and AFBs VII at 54043 and commercial activities performed in the those sales which were dumped. 54055, in which the Department United States, we did not deduct these Subsequent to the preliminary results, concluded that export selling expenses expenses from CEP for these final we received comments regarding our are not specifically associated directly results. duty-absorption determination but have

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00019 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 2576 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices not changed our presumption for these preamble to the proposed antidumping unaffiliated purchasers will pay the final results. regulations explains that reviews assessed duty. Comment 28: NSK, NTN, and Koyo initiated in 1996 will be considered Department’s Position: We agree with claim that the Department has initiated in the second year and reviews Timken. An investigation as to whether interpreted section 351.213(j) of its initiated in 1998 will be considered there is duty absorption does not simply regulations incorrectly as providing for initiated in the fourth year (see Final involve publishing the margin in the duty-absorption inquiries in the second Rule at 7317). Because the TRB order final results of review. As the and fourth years following a sunset and finding have been in effect since Department noted in the preliminary review after which an order is 1987 and 1976, respectively, these are results of these reviews, the continued and in periods such as the transitional in accordance with section determination that duty absorption seventh and ninth reviews for transition 751(c)(6)(C) of the Act (see e.g., AFBs exists is also based on the lack of any orders. Citing the principle of statutory VII at 54044 and 54075). This being a information on the record that the first construction ‘‘expressio unius est review initiated in 1996 and a request unaffiliated customer will be exclusio alterius,’’ wherein there is an having been made, we have made duty- responsible for paying the duty that is inference that all omissions should be absorption determinations as part of ultimately assessed. Absent such an understood as exclusions, respondents these administrative reviews. irrevocable agreement between the conclude that the lack of explicit Comment 29: Respondents argue that affiliated U.S. importer(s) and the first Congressional approval for duty- measuring duty absorption based on unaffiliated customer, there is no basis absorption inquiries for the latter information not known until the for the Department to conclude that the transition orders shows that Congress completion of an administrative review duty attributable to the margin is not did not intend for duty-absorption is unfair. More specifically, they claim being absorbed (see, e.g., AFBs VII at inquiries to be initiated more than four that the nature of the review process 54043 and 54044). years after publication of an prevents them from determining the As was the case with the most antidumping order. Finally, respondents U.S. price increase necessary to pass recently completed review of AFBs, this is an instance where the existence of a contend that the Department is incorrect dumping duties on to customers margin raises an initial presumption in justifying the duty-absorption inquiry because the ultimate liability is not that the respondent and its affiliated by considering the TRB order and determined until the end of a review. importer(s) are absorbing the duty. As finding as transitional in accordance Respondents argue further that, other such, the burden of producing evidence with section 751(c)(6)(C) of the Act. than dumping duties paid at the time of to the contrary shifts to the respondent According to respondents, section entry, they have no means of estimating (see Creswell Trading Co., Inc. v. United 751(c)(6)(C) of the Act only applies to the price increases necessary to pass States, 15 F.3d 1054 (CAFC 1994)). ‘‘sunset’’ reviews. dumping duties on to the customers. Timken claims that not only does Here, the respondents have failed to narrowing the applicability of the duty- Finally, respondents argue that the place evidence on the record, despite absorption inquiries to only the second Department cannot presume being given ample time to do so, in and fourth years of sunset reviews ‘‘rebuttably’’ that duty absorption on support of their position that they and unduly limit the effectiveness of the sales to a U.S. affiliate exists if the their affiliated importer(s) are not statute, but there is no indication that record does not contain evidence of the absorbing the duties (see, e.g., AFBs VII sections 751(a)(4) or 751(c)(6)(D) of the U.S. purchaser’s assumption of liability at 54043 and 54044). Act intended such a narrow application. for ultimate assessment. Respondents Comment 30: Koyo and NSK argue Timken’s response to the legal principle claim that the Department’s rebuttable that, even if a duty-absorption inquiry is of ‘‘all omissions should be understood presumption ignores commercial reality lawful, the Department’s duty- as exclusions’’ is that it has little force in that no U.S. buyer would agree to absorption methodology fails to measure in the administrative setting because assume liability for an unascertainable duty absorption on respondents’ U.S. deference is granted to an agency’s amount of duties. Respondents claim sales database as a whole. Respondents interpretation of a statute, unless that the Department has not provided claim that by not considering sales Congress has directly spoken to the any reason for adopting the made at non-dumped prices the question at issue (citing Mobile presumption of duty absorption and that Department fails to get an accurate Communications Corp. Of America v. the presumption is not allowable by measure of whether duty absorption has F.C.C., 77 F.3d 1399, 1404–1045). law. occurred. Timken further argues that ‘‘whether the Timken agrees with the Department’s Timken responds that taking into specification of one matter means the approach in using the rebuttable consideration negative margins in a exclusion of another is a matter of presumption that the duties for sales duty-absorption inquiry may indirectly legislative intent for which one must that were dumped will be absorbed. lead to increased levels of dumping. look at the statute as a whole’’ (citing Timken argues that the Department’s Timken asserts that while sales priced Massachusetts Trustees of Eastern Gas examination of whether duty absorption above ‘‘dumping levels’’ may in fact & Fuel Associates v. United States, 312 occurred by reviewing data on the allow an importer to engage in duty F.2d 214, 220 (1st Cir. 1963) (citing volume of dumped imports and absorption, this does not change the authority), aff’d, 377 U.S. 235 (1964)). dumping margins follows the guidelines likelihood that dumping will increase Department’s Position: As for the time of the SAA. Timken argues that the upon revocation of an order. frame in which we are conducting these Department’s decision was reasonable, Department’s Position: We disagree reviews, section 351.213(j)(1) of our given the lack of record evidence that with respondents that we should regulations, in accordance with section the first unrelated customer will be aggregate negative and positive margins 751(a)(4) of the Act, provides for the responsible for paying the duty that is in our duty-absorption determination. conduct, upon request, of duty- ultimately assessed, the consistency of The Department treats so-called absorption inquiries in reviews initiated the Department’s dumping ‘‘negative’’ margins as being equal to two and four years after the publication determinations, and the fact that the zero in calculating a weighted-average of an antidumping duty order (see e.g., Department gives the respondents the margin because otherwise exporters AFBs VII at 54043 and 54044). The opportunity to provide evidence that the would be able to mask their dumped

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00020 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2577 sales with non-dumped sales (see Final distribution and sellers performing one LOT existed in the home market Determination of Sales at Less Than qualitatively or quantitatively different and three distinct LOTs existed in the Fair Value; Professional Electric Cutting functions in selling to them. See AFBs U.S. market (the CEP LOT and two EP Tools and Professional Electric VI at 2105. LOTs). Because there was no home Sanding/Grinding Tools from Japan, 58 As in the preliminary results, where market LOT equivalent to any of the FR 30149 (May 26, 1993)). It would be we established that the comparison U.S. LOTs for Fuji, NSK, and Koyo, and inconsistent on one hand to calculate sales were made at a different LOT than because NV for these firms represented margins using only positive-margin the sales to the United States, we made a price more remote from the factory sales, which is the Department’s a LOT adjustment if we were able to than the CEP, for these firms we made practice, and then argue, in effect, that determine that the differences in LOTs a CEP offset adjustment to NV in our there are no margins for duty-absorption affected price comparability. We CEP comparisons (see Certain Internal- purposes because a deduction from the determined the effect on price Combustion Industrial Fork Lift Trucks total duties determined should be made comparability by examining sales at from Japan; Final Results of for sales without margins (see AFB VII different LOTs in the comparison Antidumping Duty Administrative at 54043 and 54076, citing Certain Hot- market. Any price effect must be Reviews, 62 FR 5592, 5608 (February 6, Rolled Lead and Bismuth Carbon Steel manifested in a pattern of consistent 1997)). Products From the United Kingdom; price differences between foreign We determined that for MC a single Final Results of Antidumping Duty market sales used for comparison and LOT existed in the third-country market Administrative Review, 62 FR 18744, foreign market sales at the LOT of the and that a single EP LOT existed in the 18745 (April 17, 1997)). However, non- export transaction. To quantify the price U.S. market. Based on our comparison dumped sales affect the percentage of differences, we calculated the difference of the U.S. EP LOT to the third-country sales through affiliated importers which in the average of the net prices of the LOT, we determined that the third- are dumped and therefore affect the same models sold at different LOTs. We country LOT was the same as the EP results of the absorption inquiry. used the average difference in net prices LOT. As a result, we made no LOT to adjust NV when NV was based on a adjustment. Level of Trade (LOT) LOT different from that of the export For NTN we found that there were As set forth in section 773(a)(7) of the sale. If there was a pattern of no price three home market LOTs and two (EP Act and in the SAA at 829–831, to the differences, the differences in LOTs did and CEP) LOTs in the United States. extent practicable we have determined not have a price effect and, therefore, no Because there were no home market NV based on sales at the same LOT as adjustment was necessary. LOTs equivalent to NTN’s CEP LOT, the LOT of the EP and CEP sales. When Section 773 of the Act provides for an and because NV for NTN represented a we were unable to find comparison adjustment to NV when NV is based on price more remote from the factory than sales at the same LOT as the EP or CEP a LOT different from that of the CEP if the CEP, we made a CEP offset sales, we compared the U.S. sales to the NV level is more remote from the adjustment to NV in our CEP sales at a different LOT in the factory than the CEP and if we are comparisons. We also determined that comparison market. We determined the unable to determine whether the NTN’s EP LOT was equivalent to one of LOT of EP sales on the basis of the difference in LOTs between the CEP and its LOTs in the home market. Because starting prices of sales to the United NV affects the comparability of their we determined that there was a pattern States. We based the LOT of CEP sales prices (see, e.g., AFBs VII at 31566 and of consistent price differences, we made on the price in the United States after 31572). This latter situation can occur a LOT adjustment to NV for NTN in our making the CEP deductions under when there is no home market LOT EP comparisons where the U.S. EP sale section 772(d) of the Act but before equivalent to the U.S. LOT or where matched to a home market sale at a making the deductions under section there is an equivalent home market level different level of trade. 772(c) of the Act. Where home market but the data are insufficient to support Comment 31: Koyo, NTN, and NSK prices served as the basis of NV, we a conclusion on price effect. This contend that the Department’s practice determined the NV LOT based on adjustment, the CEP offset, is identified with regard to LOTs effectively starting prices in the NV market. Where in section 773(a)(7)(B) of the Act and is precludes a LOT adjustment to NV for NV was based on CV, we determined the lower of the following: CEP comparisons and is thus contrary to the NV LOT based on the LOT of the • The indirect selling expenses on the law and Congressional intent. sales from which we derived SG&A and home market sale, or NSK contends that there is no profit for CV. In order to determine the • The indirect selling expenses statutory requirement that a LOT LOT of U.S. sales and comparison sales, deducted from the starting price used to adjustment be based on the full we reviewed and compared distribution calculate CEP. difference in prices between the home systems, including selling functions, The CEP offset is not automatically market comparison LOT and the HM classes of customer, and the extent and granted each time we use CEP (see, e.g., LOT equivalent to the CEP LOT and level of selling expenses for each Notice of Final Determination of Sales suggests that a partial LOT adjustment claimed LOT. Customer categories such at Less Than Fair Value; Certain Cut-to- is contemplated by the statute. NSK as distributor, original equipment Length Carbon Steel Plate from South contends that the plain reading of the manufacturer (OEM), or wholesaler are Africa, 62 FR 61731, 61732 (November statute requires that the Department commonly used by respondents to 19, 1997)). The CEP offset is made only must adjust NV for CEP sales for the describe LOTs but are insufficient to when the LOT of the home market sale difference between price levels at the establish a LOT. Different LOTs is more advanced than the LOT of the LOTs which do exist in the home necessarily involve differences in CEP sale and there is not an appropriate market. Therefore, NSK argues the selling functions, but differences in basis for determining whether there is Department should at least make a selling functions, even substantial ones, an effect on price comparability. partial LOT adjustment when are not alone sufficient to establish a We determined that for respondents comparing NSK’s CEP sales to home difference in the LOTs. Different LOTs Koyo and NSK there were two home market aftermarket (AM) sales which, it are characterized by purchasers at market LOTs and one U.S. LOT (i.e., the contends, are more advanced than HM different stages in the chain of CEP LOT). For Fuji we determined that OEM sales because prices are higher at

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00021 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 2578 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices the HM AM LOT. Finally, NSK does not authorize the use of price Furthermore, we disagree with NSK contends that the Department should differences between different home that its CEP sales should be matched to grant NSK a partial LOT adjustment market LOTs to substitute for calculated its home market OEM sales before they equal to the price difference between LOT adjustments. As a result, Timken are matched to home market AM sales. home market AM sales and OEM sales. concludes, the Department should reject Based upon our examination of the Koyo asserts that it and other NSK’s claim for the same reasons it information on the record, we found respondents have proposed to the rejected the identical argument in AFBs that no home market LOT for NSK had Department alternative methods by VII at 54043 and 54056–57. more selling functions than another which the Department could construct Department’s Position: We disagree home market level. Rather, the home an appropriate home market LOT by with respondents. Our methodology market LOTs each involved different deducting from NV those home market does not preclude LOT adjustments to degrees of various selling functions. We expenses that correspond to the NV for CEP sales. Rather, we do not conclude that, for NSK and for expenses that are deducted from CEP, make a LOT adjustment where the facts respondents generally, while the but that the Department has failed to of the case do not support such an reported home market LOTs are provide a reasonable explanation for adjustment. Based upon our different from one another, no home rejecting the proposals. examination of the information on the market LOT is more advanced than any NTN states that the Department record, for this review we found that no other based upon the evidence on the should make a price-based LOT respondent had a home market LOT record. We also disagree with NSK’s adjustment when the LOT of the CEP equivalent to its CEP LOT. As a result, assertion that, because its OEM prices sale is different from the LOT of the because we lacked the information are generally lower than its AM prices, comparison foreign like product, and necessary to determine whether there is its OEM LOT is less advanced than the that the LOT of the CEP sale should be a pattern of consistent price differences distributor/aftermarket LOT. We based on the sale to the first unaffiliated between the relevant LOTs, we did not determine whether one LOT is more U.S. customer prior to the deduction of make a LOT adjustment for any of the advanced than another on the basis of expenses pursuant to section 772(d) of respondents when we matched a CEP the selling functions performed by a the Act. NTN asserts that such an sale to a sale of the foreign like product respondent with respect to the two approach is not only consistent with the at a different LOT. We disagree with LOTs. NSK’s home market OEM and Department’s model-match NSK that we should make a ‘‘partial AM sales are more advanced than the methodology, but evidence on the LOT adjustment’’ because there is no LOT of the CEP sales because record demonstrates that NTN’s provision in the statute for making such comparatively fewer selling functions performance of different selling a partial adjustment. We make a LOT are associated with the CEP sales than activities at each LOT affected price adjustment when there is ‘‘any are associated with sales to either of the comparability. NTN argues that it is other LOTs. Therefore, we have not unreasonable for the Department to difference between the export price or constructed export price and the [NV] altered our LOT methodology. refuse to make a price-based adjustment Finally, we disagree with NTN. The that is shown to be wholly or partly due when there are significant differences in definition of ‘‘constructed export price’’ to a difference in LOT between the prices between home market LOTs and contained at section 772(d) of the Act export price or constructed export price U.S. sales are matched to home market indicates clearly that we are to base CEP sales at LOTs different than the U.S. and the normal value.’’ See section on the U.S. resale price, as adjusted for sale. 773(a)(7)(A) of the Act. While NSK has U.S. selling expenses and profit. As Timken contends that under section interpreted the phrase ‘‘wholly or such, the CEP reflects a price exclusive 773(a)(7)(A)(ii) of the Act, Congress partly’’ to justify a partial LOT of all selling expenses and profit intended for a LOT adjustment to be adjustment, we interpret this phrase to associated with economic activities made only if it was ‘‘demonstrated to mean that we may make a LOT occurring in the United States. See SAA affect price comparability, based on a adjustment only if part of the at 823. These adjustments are necessary pattern of consistent price differences differences in prices between LOTs is in order to arrive at, as the term CEP between sales at different LOT’s in the attributable to the difference in LOT. In makes clear, a ‘‘constructed’’ EP. The country in which normal value is other words, we need not demonstrate adjustments we make to the starting determined.’’ Timken contends that the that no factor other than LOT influenced price, specifically those made pursuant adjustment cannot be made unless a a pattern of price differences. Thus, we to section 772(d) of the Act (‘‘Additional LOT equivalent to the U.S. LOT exists do not read into this language of the Adjustments for Constructed Export in the home market. Therefore, Timken statute the authority to make a LOT Price’’), normally change the LOT. claims, if the data available to the adjustment between two home market Accordingly, we must determine the Department does not allow the LOTs where neither level is equivalent LOT of CEP sales exclusive of the demonstration required by section to the LOT of the U.S. sale. expenses (and associated selling 773(a)(7)(A)(ii) of the Act, the statute We also disagree with Koyo that we functions) that we deduct pursuant to does not permit a LOT adjustment and should adopt one of the proposed this section (see, Certain Cold-Rolled allows only a CEP offset. alternative methods by which we would Carbon Steel Flat Products from the Further, Timken argues that NSK’s ‘‘construct’’ home market LOTs. We Netherlands; Final Results of assertion that the Department could base home market LOTs on a Antidumping Administrative Review, 62 have calculated a ‘‘partial LOT respondent’s actual experience in FR 18475, 18480 (April 15, 1997)). As adjustment’’ for the difference between selling in the home market. Therefore, stated earlier, because none of NTN’s the CEP LOT and the home market AM because there is no statutory basis for us home market LOTs were equivalent to LOT on the basis of a consistent pattern to ‘‘construct’’ levels in the home the LOT of its CEP sales, we were of price differences between the home market or elsewhere, we have not used unable to make a LOT adjustment for market OEM and AM LOTs is Koyo’s claimed constructed NV LOT in such sales. unfounded. Timken contends that order to calculate a LOT adjustment for Comment 32: NTN contends that the where there is no home market LOT Koyo’s CEP sales (see AFBs VII at 54040, Department should have relied on its comparable to the U.S. LOT, the statute 54047). U.S. and home market selling expenses,

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00022 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2579 which were based on LOT, as reported, methodology was ‘‘whether the reported LOT by performing different activities/ instead of reallocating these selling expenses demonstrably vary according functions or by performing the same expenses without regard to LOT. NTN to levels of trade.’’ Timken argues that activities/functions to a different degree argues that the Department incorrectly while NTN asserts that its LOT-specific when selling to each LOT. In relied on the CIT’s decision in The allocation methodology meets this accordance with this order, in our Timken Company v. United States, Slip standard, NTN provides no explanation remand results pursuant to Timken 1 we Op. 96–86 (May 31, 1996)(Timken 1) as on the record of how its methodology did not allow NTN’s allocation of its the basis for its reallocation because the met this standard nor is there any other expenses by LOT due to the lack of standards set forth in the Timken 1 evidence on the record supporting quantitative and narrative evidence on decision are not only met by NTN’s NTN’s methodology. the record demonstrating that the allocated expenses, but its original Timken further argues that in Timken expenses in question demonstrably reporting methodology is less distortive 1, after identifying the issue in question, varied according to LOT. In the instant than the Department’s reallocation the CIT remanded the case to the review, we applied the same standards without regard to LOT. NTN further Department to determine whether NTN articulated by the CIT in Timken 1. In asserts that the Department’s reliance on had demonstrated that its expenses other words, we have examined the Timken 1 is misplaced due to the fact varied according to LOT. However, record to determine if evidence exists that the Department has previously Timken states, while the Department demonstrating that those home market indicated that NTN’s reporting was working on its response to that and U.S. expenses NTN allocated by methodology is within the parameters of remand, it issued its 1992–93 final LOT did demonstrably vary according to the Timken 1 determination. For results, the final results cited by NTN, LOT. example, NTN asserts, in 92/93 TRB in which it rejected NTN’s allocation of For this review NTN provided two Final at 57629 and 57636, the U.S. expenses due to a discrepancy in exhibits which outlined its derivation of Department determined that NTN’s sales value. Timken states that it was LOT-specific per-unit expense LOT-based reporting was not acceptable only after publication of the 1992–93 adjustments for certain of its U.S. and based ‘‘solely on our discovery of a final results for NTN that the home market expenses. Exhibit C–7 discrepancy in NTN’s reported total Department completed its remand detailed NTN’s calculations of LOT- U.S. sales value for scope merchandise results pursuant to Timken 1 and specific per-unit expense adjustment during the POR.’’ NTN maintains that it determined that the record lacked the ratios for its U.S. inland freight is clear from the language of the evidence necessary to demonstrate that (warehouse to customer) expenses, other determination that the only reason the NTN’s expenses varied by LOT. See The U.S. transportation expenses, U.S. Department rejected NTN’s reported Department’s Final Results of Customs duty, U.S. packing material, expenses was an alleged discrepancy in Redetermination Pursuant to Court overhead, and labor expenses, U.S. reported numbers. NTN claims that not Remand (December 17, 1996), at 9. advertising expenses, U.S. inventory only is the reporting methodology in Timken contends that, given that these carrying costs, and other U.S. indirect this review identical to that in the remand results have been affirmed by selling expenses. Exhibit B–4 detailed above-cited final results, but the the CIT (see Timken v. United States, NTN’s LOT-specific per-unit adjustment Department found no discrepancies in Slip Op. 97–87 (July 3, 1997), and that ratios for its home market pre-sale and this methodology during its U.S. sales the Department has requested a remand post-sale freight expenses, home market verification. in the litigation arising from the 1992– advertising expenses, home market In addition, NTN contends that the 93 final results to consider this issue in packing labor and material expenses, Department determined that different light of its remand redetermination home market technical service LOTs existed in the U.S. and Japanese pursuant to Timken 1 and the CIT’s expenses, and other home market markets for its sales (see TRB Prelim at affirmation thereof, the Department indirect selling expenses. Both exhibits 47458–9), and that the decision to correctly rejected NTN’s LOT-specific indicate that, except for certain U.S. and allocate certain U.S. and home market expense allocations in this instant home market packing material and expenses without regard to LOT voids review. packing labor expenses, none of the the LOT determination made in the Department’s Position: We agree with expenses were unique to a single LOT preliminary results, insofar as the effect Timken in part. We have determined in that NTN incurred each of the above of the different LOTs on price is that, for a majority of the expenses in expenses when selling to each LOT. lessened by this reallocation. question, NTN’s LOT-specific selling However, rather than calculate a single Furthermore, NTN argues that the expense allocation methodology bears allocation ratio to be applied to all sales, Department’s mandate is to administer no relationship to the manner in which NTN instead allocated a portion of each the antidumping laws as accurately as NTN actually incurred these selling total expense amount to each LOT such possible (see Bowe-Passat at 335 and expenses. In Timken 1 the CIT ordered that it was able to derive LOT-specific 340). Because the Department’s the Department to accept NTN’s LOT- allocation ratios. When applied to the reallocation of these expenses without specific allocations and per-unit LOT reported unit prices, NTN’s LOT- regard to LOT eliminates the affect of expense adjustment amounts only if specific allocation ratios resulted in the LOT on price, NTN asserts, the NTN’s expenses demonstrably varied calculation of significantly different per- Department’s decision to reallocate according to LOT. By ordering us to unit expense adjustment amounts such these expenses is a direct violation of ascertain whether these expenses that NTN actually reported an expense this mandate. Therefore, NTN actually varied according to LOT, the adjustment amount for a TRB sale to one concludes, the Department should rely CIT, in essence, indicated that NTN’s LOT which was significantly different on the LOT-specific expense allocation use of its calculation of LOT-specific than the amount of the same expense it ratios and its LOT-specific expenses as per-unit expense adjustments did not reported for a sale of the identical TRB originally reported in its questionnaire necessarily mean that NTN incurred the to another LOT. response. expenses differently due to differences NTN determined the portion of each Timken contends that in Timken 1 the in LOTs. Rather, additional evidence of the above expenses (except for certain CIT stated that the issue raised by must also exist which demonstrates that U.S. and home market packing material NTN’s LOT-specific expense allocation NTN actually sold differently to each and labor expenses) to be allocated to

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00023 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 2580 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices each LOT by means of allocation 1997, attachments I and II), we did, in to unaffiliated parties. NTN argues that methodologies which were based on (1) fact, recalculate NTN’s U.S. selling in applying the arm’s-length test the the differences in total sales value for expenses without regard to LOT. Department only considers the average each LOT, (2) the differences in the total However, in contrast to the above, for percentage difference in pricing number of invoices generated for each certain of NTN’s U.S. packing material between affiliated and unaffiliated-party LOT, (3) the differences in the total and packing labor expenses, exhibit C– sales and ignores other factors which number of employees involved in sales 7 of NTN’s response indicated that NTN greatly influence price such as the terms at each LOT, or (4) a combination of the incurred these expenses only when and quantities of each affiliated-party above. As a result, these differences selling to one specific U.S. LOT. In sale. NTN further contends that the caused the differences in the expense addition, NTN’s narrative explanation Department’s 99.5 percent threshold is amounts NTN reported for each LOT clearly indicated that certain of NTN’s not really a ‘‘test’’, since it fails to and in its LOT-specific ratios. packing expenses individually differed provide an objective standard to While the record for these reviews by LOT. Because these expenses were determine whether affiliated sales are at contains detailed worksheets unique to a single LOT, NTN (1) arm’s-length. Instead, NTN claims, the demonstrating NTN’s allocation allocated each total expense amount test weighs sales against an average methodologies, it does not contain any solely to this LOT, (2) calculated a which does not reflect the full range of narrative or quantitative evidence single allocation ratio for this LOT, and prices paid in the transactions demonstrating why or to what degree a (3) applied this ratio only to those U.S. examined. Therefore, NTN asserts, the TRB sale to one LOT would generate a sales at this LOT. NTN’s response use of the 99.5 percent figure as a greater or lesser amount of the above clearly indicates that these expenses baseline to decide if sales are at arm’s expenses than a sale of the same TRB to demonstrably varied according to LOT length does not address the fact that another LOT. Rather, NTN’s sole (see NTN questionnaire response, some arm’s-length sales fall outside this support for its allocations are the January 27, 1997, at exhibit C–7) (NTN narrow range. As a result, NTN claims, allocations themselves. While we Response). Furthermore, in the instant the percentage used would better reflect recognize that total sales values, the review, we verified these expenses in the range of arm’s-length prices if it total number of invoices, and even the detail and concluded that NTN’s were lowered to a 95 percent threshold. total number of employees may vary allocation methodology regarding U.S. Timken claims that in accordance according to LOT, these aggregate packing material and U.S. packing labor with section 773(a)(1)(B) of the Act, the differences do not demonstrate whether was accurate (see NTN U.S. Report, at Department properly excluded those NTN sold differently to its LOTs and fail 13). Therefore, for our preliminary home market sales to affiliated parties to indicate what activities or functions results we applied our recalculated which were not at arm’s length. Timken NTN may have performed differently ratios for certain of NTN’s U.S. packing argues that not only is it wholly within when selling to each LOT such that it and U.S. labor expenses only for sales the Department’s discretion to derive a actually incurred per-unit expense to the one LOT for which these methodology to determine whether amounts differently due to differences expenses were incurred. home market sales to affiliates are at in LOTs. The record, therefore, lacks the In addition, after further review of the arm’s length, but NTN has provided no evidence necessary to demonstrate that record, we have also determined that evidence supporting its claim that the all of NTN’s expenses varied according NTN’s home market packing labor and Department’s 99.5 test was contrary to to LOT. Therefore, for these final packing material expenses demonstrably law. results, we have not accepted NTN’s varied according to LOT. Section A and In addition, Timken points out, the LOT-specific allocations and its use of exhibit B–4 of NTN’s response clearly record indicates that one of the factors LOT-specific adjustment ratios for its demonstrate that different methods of suggested by NTN for inclusion in the U.S. inland freight (warehouse to packing are required depending upon 99.5 percent test, terms of sale, was customer) expenses, other U.S. LOT. As indicated above, NTN has reported the same for all of NTN’s home transportation expenses, U.S. Customs allocated all of its home market market sales. Thus, Timken concludes, duty, U.S. advertising expenses, U.S. expenses by LOT, but has not provided even if the Department agreed with inventory carrying costs, and other U.S. record evidence (except for home NTN, the adoption of NTN’s suggestion indirect selling expenses, or for its home market packing) demonstrating that they would have no effect. market pre-sale and post-sale freight were incurred differently by LOT. Department’s Position: We disagree expenses, home market advertising Therefore, for these final results we with NTN. Our 99.5 percent arm’s- expenses, home market technical have only accepted NTN’s allocation for length test is a reasonable method for service expenses, and other home home market packing expenses establishing a fair basis of comparison market indirect selling expenses. Rather, according to LOT. between affiliated and unaffiliated-party we have recalculated NTN’s allocation Therefore, with the exception of sales. NTN asserts that additional ratios such that we derived a single ratio NTN’s home market and U.S. packing factors, such as quantity and payment applicable to all sales regardless of LOT. expenses, due to the lack of quantitative terms, should be taken into We then applied these recalculated and narrative evidence on the record consideration when comparing affiliated allocation ratios to NTN’s reported U.S. demonstrating that certain of NTN’s and unaffiliated-party sales, but fails to and home market unit prices to expenses demonstrably varied according establish that the Department must calculate per-unit expense adjustment to LOT, for these final results we have abandon its existing test. NTN also amounts which did not vary by the LOT reallocated these expenses without argues that our use of the 99.5 percent to which the U.S. or home market sale regard to LOT. threshold is distortive but provides no was made. quantitative evidence demonstrating We disagree with Timken that all of Arm’s Length Test that a lowering of the threshold would NTN’s U.S. and home market expenses Comment 33: NTN asserts that the yield more accurate results. should be recalculated without regard to Department’s 99.5 percent arm’s-length Furthermore, the CIT has upheld the LOT. In our preliminary analysis test is not a reasonable basis for validity of our arm’s-length test on memorandum (see Preliminary Analysis determining whether affiliated-party numerous occasions. For example, in Memorandum for NTN, September 2, sales were at prices comparable to those Usinor Sacilor v. United States, 872 F.

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Supp 1000 (1994), the CIT clearly stated which a respondent applies the label consideration. Timken maintains that that ‘‘[g]iven the lack of evidence ‘‘sample.’’ In fact, for these reviews we NSK did not provide information for the showing any distortion of price determined that there were instances record affirmatively demonstrating that comparability, the court finds where it is appropriate not to exclude its U.S. sample sales were transferred application of Commerce’s arm’s-length such alleged samples from our dumping without consideration or ownership. test reasonable.’’ Likewise, in Micron analysis. It is well-established that the Timken further argues that the CIT in Technology, Inc. v. United States, 893 F. burden of proof rests with the party J.C. Hallman Mfg. Co. v. United States, Supp 21, 38 (CIT 1995), because the CIT making a claim and in possession of the 13 CIT 1073, 1076, 728 F. Supp. 751, found that the plaintiff/respondent needed information (see, e.g., NTN 753 (1989) (J.C. Hallman) stated that failed to ‘‘demonstrate that Commerce’s Bearing Corporation of America v. samples must be reported under a customer-based arm’s-length is United States, 997 F.2d 1453, 1458–59 ‘‘temporary importation bond.’’ Timken unreasonable’’ and failed to ‘‘point to (CAFC 1993), (citing Zenith Elecs. Corp. asserts that the CIT in that case also record evidence which tends to v. United States, 988 F.2d 1573, 1583 held that in the absence of such a bond, undermine Commerce’s conclusion,’’ (CAFC 1993), and Tianjin Mach. Import the Department has no way of knowing the CIT sustained the 99.5 percent & Export Corp. v. United States, 806 F. that the merchandise is not imported for arm’s-length test, given a lack of Supp. 1008, 1015 (CIT 1992)). As sale. Timken contends that because NSK evidence showing a distortion of price discussed below, one respondent failed has provided no information comparability. Further, in NTN Bearing to demonstrate that its claimed sample demonstrating whether its zero-priced Corp. of America, American NTN sales lacked consideration. When sample sales were imported under a Bearing Manufacturing Corp., and NTN respondents failed to support their temporary importation bond, the Corp. v. United States, 905 F. Supp. sample claim, we did not exclude the Department should reverse its 1083 (CIT 1995), NTN argued, as here, alleged samples from our margin preliminary determination and include that there were numerous factors analysis. NSK’s zero-priced sample sales in its influencing the price of a related-party With respect to HM sales, in addition margin calculations for these final transaction and the Department cannot to excluding sample transactions which results. make a meaningful price comparison do not meet the definition of ‘‘sales,’’ we NSK responds that the Department without examining them. The CIT may exclude sales designated as correctly excluded zero-priced U.S. disagreed with NTN and stated that, in samples from our analysis, pursuant to sample sales from its analysis. NSK accordance with section 19 CFR section 773(a)(1) of the Act, when a contends that Timken’s reliance on J.C. 353.45(a) of our regulations, the respondent has provided evidence Hallman is misplaced because this case Department has broad discretion in demonstrating that the sales were not predated the court’s NSK decision and devising an appropriate methodology to made in the ordinary course of trade, as because the CIT, in its omission of any determine whether particular related- defined in section 771(15) of the Act. reference to J.C. Hallman in its decision, party prices are, in fact, comparable to With regard to assessment rates, in effectively determined that the case was unrelated-party prices. order to ensure that we collect duties irrelevant for its decision. Furthermore, Therefore, because NTN has failed to only on sales of subject merchandise, NSK argues, the only standard set forth demonstrate that the 99.5 percent we included the entered values and by the CAFC in NSK is whether a sale threshold produces distortive results quantities of the sample transactions in occurred (i.e., involved consideration). and that the Department’s methodology our calculation of the assessment rates NSK contends that as long as sample is unreasonable, in accordance with the and set the dumping duties due for such sales lacked consideration, then all CIT decisions cited above, we have not transactions to zero. We have done this other issues, such as whether the altered our 99.5 percent arm’s-length because U.S. Customs will collect the ad recipient took title to the merchandise, test for these final results. valorem (or per-unit, where applicable) are irrelevant. NSK further argues that it duties on all entries of subject reported its free samples as outside the Sample Sales merchandise whether or not the ordinary course of trade and indicated On June 10, 1997, the CAFC held that merchandise was a sample transaction. that zero-priced samples were not sales the term ‘‘sold’’ requires both a transfer However, to ensure that sample because they lacked consideration. of ownership to an unrelated party and transactions do not dilute the cash Because the Department did not ask any consideration. NSK Ltd. v. United deposit rates, we excluded both the questions regarding the company’s States, 115 F.3d 965, 975 (Fed. Cir. calculated U.S. prices and quantities for sample sales in its supplemental 1997) (NSK). The CAFC determined that sample transactions from our questionnaire, NSK argues, the samples which NSK had given to calculation of the cash deposit rates. Department concluded that it had all potential customers at no charge and Comment 34: Timken argues that for necessary information to determine with no other obligation lacked these final results the Department whether or not zero-priced sample sales consideration. Moreover, the CAFC should include in NSK’s U.S. database should be considered ‘‘sales’’ for found that, since free samples did not its zero-priced sample sales. Timken purposes of its analysis. constitute ‘‘sales,’’ they should not have contends that although the CAFC’s Department’s Position: We disagree been included in calculating U.S. price. decision in NSK held that zero-priced with petitioner. The record indicates In light of the CAFC’s opinion, we sample sales which lacked that NSK’s reported sample transactions have revised our policy with respect to consideration did not constitute ‘‘sales’’ did not involve consideration (see, e.g., samples. The Department will now for purposes of the antidumping law, NSK Section C Questionnaire Response, exclude from its dumping calculations the decision did not establish a per se January 27, 1997, at 4). Accordingly, sample transactions for which a exclusion for all zero-priced sample pursuant to the CAFC’s decision in respondent has established that there is sales. Timken argues that such sales do NSK, we have excluded NSK’s reported either no transfer of ownership or no not qualify for automatic exclusion from U.S. sample sales from the U.S. sales consideration. the U.S. database because the burden is database. This new policy does not mean that on the respondent to demonstrate that Comment 35: NTN argues that the the Department automatically will sample sales did not involve the transfer Department should exclude from its exclude from analysis any transaction to of ownership or that they lacked margin calculations those sample sales

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NSK contends that because home market sample sales which it above, we have altered our treatment of the general issues section is free of claims are outside the ordinary course NTN’s zero-priced U.S. sales and have proprietary material, it should have of trade should be excluded from included them in NTN’s U.S. database been served with the proprietary portion margin calculations in accordance with for these final results. of Timken’s brief rather than one day section 773(b) of the Act and in NTN also argues that we should later. NSK claims that the Department accordance with the CIT’s decision in exclude its alleged home market sample should not allow Timken to abuse the NSK v. United States, Slip Op. 97–74 sales from its home market sales ‘‘one-day lag’’, for the purpose of the (June 17, 1997), in which the CIT held database. As noted previously, one of rule is to permit counsel the that the Department improperly the circumstances under which we may opportunity to review proprietary included NTN’s sample sales. exclude sample sales from the home portions of submissions and to confirm NTN also asserts that its U.S. sample market database is when a respondent that (a) all proprietary information has sales should be excluded from the has demonstrated that such sales were been properly bracketed, and (b) that the Department’s analysis in accordance made outside the ordinary course of public version correctly removes, ranges with the CAFC’s ruling in NSK, in trade. Accordingly, we have examined or indexes the proprietary information. which the CAFC ordered that zero- the record with respect to NTN’s alleged 19 CFR 353.32(a)(2). Therefore, NSK priced sample sales be excluded for home market sample sales to determine asserts, because neither of these purposes of calculating margins. if these sales qualify for such an purposes is served by Timken’s decision Timken responds that the CAFC in exclusion. In its original questionnaire to withhold an entire portion of its case NSK did not establish a per se exclusion response NTN only states that ‘‘samples brief, the Department should reject the for so-called sample sales. Rather, are provided to customers for the general issues portion of Timken’s case Timken claims, the CAFC held that purpose of allowing the customer to brief. sales which lacked consideration did determine whether a particular product Department’s Position: During our not constitute sales for purposes of the is suited to the customer’s needs’’ and October 30, 1997 TRB hearing NSK antidumping law. Timken notes that the that ‘‘the purpose * * * would not be raised these concerns. After adjourning Department’s preliminary margin the same as those purchased in the to review the details of Timken’s brief program at lines 92 and 704 already normal course of trade’’ (see, NTN and the issues raised by NSK, we excludes zero-priced sales, and claims Response at B–15). NTN has provided determined that Timken improperly that the NSK decision does not support no other information demonstrating that served the general issues portion of its the exclusion of sales NTN alleges are its alleged home market sample sales case brief to the other parties to this samples. Finally, Timken argues that were outside the ordinary course of proceeding but nevertheless properly NTN has not adequately demonstrated trade. The fact that a respondent filed its brief with the Department. After that its home market sample sales are identified sales as samples does not further discussion with the parties in outside the ordinary course of trade, and necessarily render such sales outside attendance we found that NSK, NTN, that such sales therefore do not warrant the ordinary course of trade (see AFBs and Fuji all responded to Timken’s exclusion from the home market VI at 2124). For these reasons, we general comments section in their database. disagree with NTN that its home market rebuttal briefs, but that Koyo had not. Department’s Position: We disagree ‘‘sample’’ sales should be excluded from Therefore, with the agreement of the with NTN. We examined the record to our margin calculations. parties in attendance, because Koyo did determine whether NTN’s U.S. sample We have also evaluated whether not have the opportunity to rebut this sales lacked consideration, and were NTN’s alleged home market sample section of Timken’s brief due to the unable to find any information sales qualify for exclusion from the service of the brief, we granted Koyo an whatsoever in either NTN’s narrative or home market database in light of the additional week to respond to the sales database regarding sample NSK decision. As noted above, we general issues section of Timken’s case transactions. As noted above, the party exclude sample transactions from the brief and allowed Timken’s general in possession of the information has the dumping calculation only if a comments to remain part of the burden of producing that information, respondent has demonstrated that there administrative record. particularly when seeking a favorable is either no transfer of ownership or no adjustment or exclusion. Because NTN consideration. Evidence on the record Clerical Errors did not provide any information in its clearly indicates that NTN received Comment 37: NSK argues that, when response or elsewhere that would have consideration for all home market sales calculating home market net prices, aided us in determining whether NTN it claims are samples. As such, none of rather than deducting NSK’s reported received a bargained-for exchange from its home market sample sales meet the REBATE1H, the Department incorrectly its U.S. customers, we cannot conclude criterion for exclusion established by added these rebates to home market that NTN received no consideration for NSK. gross unit price. Timken states that, to these alleged samples. While NTN’s Therefore, because NTN’s alleged U.S. the extent that the Department intended database does include sales which are and home market sample sales do not to deduct NSK’s rebates when zero-priced, we are unable to determine qualify for exclusion under NSK, and calculating NV, it agrees that the rebates from the record if these transactions because NTN has failed to demonstrate were improperly added to gross price. represent those sales which NTN that its home market sample sales are Department’s Position: We agree with apparently argues should be excluded outside the ordinary course of trade, we NSK and have amended our computer from the U.S. database in accordance have included these sales in our U.S. program for these final results such that with NSK. Furthermore, the mere fact and home market databases for these NSK’s reported home market rebates are that a sale has a reported unit price of final results. subtracted from, rather than added to, zero does not indicate that a transaction Comment 36: NSK argues that home market gross unit prices. lacked exchange of consideration. Our Timken’s general issues should be Comment 38: NSK and Koyo assert preliminary margin program stricken from the record because the that, when calculating CEP profit, the

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Department incorrectly based its as the value to which the ratios are the final results the Department should derivation of total home market revenue applied. correct this error such that whenever on gross home market prices rather than Timken asserts that these imputed contemporaneous sales of an identical on home market prices net of discounts credit and inventory expenses are or most similar foreign like product is and rebates. Timken agrees that the already included in the Department’s determined to be below COP, the calculation of home market revenues calculation of CV as part of SG&A and computer program calculates NV on the should be based on net price. that to add them again would result in basis of CV rather than continuing the Department’s Position: We agree. The double counting. search for a contemporaneous match of Department’s September 4, 1997 policy Department’s Position: We agree with the next most similar foreign like bulletin regarding the calculation of CEP NSK. When calculating CV in our product. profit clearly indicates that total home preliminary results computer program Department’s Position: We agree with market sales revenue should be for NSK we inadvertently failed to make Timken and NSK. Therefore, for these calculated net of home market discounts a COS adjustment to CV for NSK’s final results we have modified our and rebates. Therefore, for these final reported home market credit expenses multi-level array model-match computer results we have adjusted our calculation and failed to deduct ICC from CV as part programming language to correct this of NSK’s and Koyo’s home market of the CEP offset. Therefore, for these error and to ensure that all sales of a revenue such that our computer final results we have modified certain U.S. model for which the identical or programs calculate home market language within our computer program most similar foreign like product is revenues net of rebates and discounts. to ensure that these deductions are below COP are compared to CV. In addition, while NTN did not made when we calculated NV using CV. Comment 42: NTN argues that the comment on this issue, we note that we In addition, in order to derive the actual Department’s preliminary results made the identical error in our credit and ICC amounts used in our CV computer program contains two errors preliminary results computer program calculation, we calculated our home which should be corrected for the final for NTN. Therefore, to ensure the market credit and ICC ratios on the same results. First, NTN claims, when calculation of the most accurate final basis as the value to which we applied creating the data sets NEGDATA1, results margin for NTN, we have these ratios. Furthermore, while only HMREL, and HMUNREL from the data corrected this error in our computer NSK commented on this issue, we have set HMOVER, the Department’s program for NTN as well. determined that we made the identical computer program for NTN drops We also note that, while reviewing error in our preliminary results several observations which should have our preliminary results calculation of computer programs for NTN and Koyo. not been excluded from the margin CEP profit for each of the respondents, Therefore, to ensure the calculation of calculations. Likewise, NTN argues, we discovered that we inadvertently accurate final results margins for these when the Department created the data made an additional error. After two respondents, we have corrected this sets HMSETS, HMCUPS, and calculating total actual profit and error in our computer programs for NTN HMCONES from the data set HMMM, deriving a profit ratio, we multiply this and Koyo as well. the computer program again dropped ratio by the respondent’s total U.S. Comment 40: NSK contends that the several observations which should not selling expenses. Our September 4, 1997 Department improperly downloaded have been excluded from the margin policy bulletin clearly states that ‘‘when NSK’s U.S. computer data by failing to calculations. allocating a portion of the actual profit define the Y2FACTU variable as having While Timken does not specifically to each U.S. CEP sale, we will include two decimal places. As a result, NSK agree or disagree with NTN’s clerical imputed (U.S.) credit and inventory asserts, the U.S. Y2 factors used by the error allegations, with respect to NTN’s carrying costs as part of the total U.S. Department in its preliminary results first alleged error it notes that the expenses allocation.’’ However, in our model-match for NSK erroneously relies Department’s computer programming preliminary results computer programs on a U.S. Y2 factor which is overstated language causes sales observations with we inadvertently excluded U.S. credit by 100. Timken agrees that NSK’s U.S. a customer relationship code other than and inventory carrying costs from our Y2 factor variable appears to lack 1 or 2 to be excluded from the calculation of the U.S. selling expenses decimal places. Department’s calculations. Similarly, upon which profit was allocated. Department’s Position: We agree with Timken notes that, with respect to Therefore, although no party to this NSK. However, rather than re- NTN’s second alleged error, the proceeding commented on this issue, to downloading NSK’s U.S. data to correct Department’s computer programming ensure the calculation of accurate this error, for these final results we have language results in observations for margins we have nevertheless corrected corrected this error by dividing all of which the home market part type was this error, where appropriate, for these NSK’s U.S. Y2 factors within our reported as other than 1, 2, or 3 also to final results. database by 100 prior to conducting our be excluded from the margin Comment 39: NSK argues that, model matches. calculations. although it is the Department’s long- Comment 41: Timken and NSK assert Department’s Position: With respect standing policy when calculating CV to that an error exists in the Department’s to NTN’s first alleged error, we agree. In deduct credit from CV as a home market preliminary results computer programs preparation for our arm’s-length test we circumstance-of-sale (COS) adjustment which causes certain U.S. sales to be divided NTN’s home market sales (data and to deduct ICC as part of the CEP matched with the second or third most set HMOVER) into two groups on the offset, the Department’s preliminary similar foreign like product in those basis of whether the sale was made to results computer program for NSK did instances where the identical or most an affiliated or unaffiliated customer not make these adjustments. NSK similar foreign like product was (data sets HMREL and HMUNREL). In contends that not only should the determined to be below COP. Timken our questionnaire we asked respondents Department make these adjustments for and NSK argue that, because it is the to identify for each home market sale these final results, but when deriving Department’s long-standing practice to whether it was to an affiliated or the expense ratios for credit and ICC, base its calculation of NV on CV unaffiliated customer, using a code of the Department should ensure that these whenever the identical or most similar ‘‘1’’ for unaffiliated customers and a ratios are calculated on the same basis foreign like product is below cost, for code of ‘‘2’’ for affiliated customers.

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While our questionnaire does not matches U.S. sales to sales of the foreign Margin instruct respondents to use any like product. Manufacturer/exporter/reseller (percent) additional codes, NTN nevertheless Koyo contends that it is unnecessary For the A±588±054 Case:. separately identified its sales to home for the Department to purposely set the market affiliated customers which were Koyo Seiko ...... 9.60 ID for its reported U.S. TRB cups and Fuji ...... 34 consumed rather than resold using a the OD for its reported U.S. TRB cones NSK ...... 1.45 code of ‘‘3.’’ In our preliminary results to zero. Koyo argues that, regardless of MC International ...... 1.92 computer program we inadvertently whether there is an erroneous ID or OD For the A±588±604 Case:. excluded the code of ‘‘3’’ from the reported for a U.S. TRB cup or cone, the Fuji ...... (1) 1 programming language we used to Department’s computer program MC International ...... ( ) Koyo Seiko ...... 29.02 separate home market sales into the nevertheless ranks the home market affiliated and unaffiliated sales groups. NTN ...... 27.80 foreign like products for each U.S. NSK ...... 9.60 Therefore, for these final results we model accurately. have corrected this error by identifying 1 No shipments or sales subject to this re- all home market sales to affiliated Department’s Position: We disagree view. These firms have no rate from any prior customers by means of both codes ‘‘2’’ with Timken that distortions will result segment of this proceeding. and ‘‘3.’’ because the computer program does not The Department shall determine, and With respect to NTN’s second alleged set the OD for U.S. cones and the ID for the Customs Service shall assess, error, we disagree that the discrepancy U.S. cups to zero. Two of the physical antidumping duties on all appropriate NTN notes is an error. In our TRB criteria for TRB sets are the ID and OD. entries. We will calculate importer- questionnaire we ask respondents to The ID reflects the measure of the TRB specific ad valorem duty assessment identify TRB sets, cups, cones, and parts cone while the OD reflects the measure rates for the merchandise based on the using numerical codes (‘‘1’’ for sets, ‘‘2’’ of the TRB cup. While a TRB set, which ratio of the total amount of antidumping for cups’’, ‘‘3’’ for cones, and ‘‘4’’ for contains both a cup and cone, has both duties calculated for the examined sales parts), and we used these numerical an ID and OD measurement, made during the POR to the total codes when we created the data sets individually sold TRB cups do not have customs value of the sales used to HMSETS, HMCUPS, and HMCONES in an ID and individually sold TRB cones calculate those duties. This rate will be our computer program. The sales NTN do not have an OD. As a result of our assessed uniformly on all entries that a identifies as being incorrectly excluded home market set-splitting methodology, particular importer made during the from the margin calculations were sales in which we derive separate cup and POR. (This is equivalent to dividing the of home market parts (code ‘‘4’’). We did cones sales from the respondents’ total amount of antidumping duties, not create a separate HMPARTS data set reported home market TRB set sales, it which are calculated by taking the and did not retain these sales in our is necessary for us to purposely set the difference between NV and U.S. price, margin calculation because we had ID for split cups to zero and the OD for by the total U.S. price of the sales already determined that NTN did not split cones to zero. In the past, we have compared and adjusting the result by make any sales of TRB parts in the found it unnecessary to include similar the average difference between U.S. United States. Because our TRB model- programming language with respect to a price and customs value for all match methodology does not permit the respondent’s U.S. sales because we do merchandise examined during the POR.) comparison of U.S. TRB sets, cups and not split U.S. sets into individual cup While the Department is aware that the cones to home market parts (we only and cone sales. Timken’s comments entered value of sales during the POR is match U.S. TRB sets to home market reflect its concern that, if a respondent not necessarily equal to the entered sets, U.S. cups to home market cups, incorrectly reports an ID value greater value of entries during the POR, use of U.S. cones to home market cones, and than zero for any U.S. cups and an OD entered value of sales as a basis of the U.S. parts to home market parts), and value greater than zero for any U.S. assessment rate permits the Department because there were no U.S. sales of TRB cones, the Department’s programming to collect a reasonable approximation of parts, it was unnecessary for us to retain language would result in inaccurate antidumping duties which would have NTN’s reported sales of home market model matching. Therefore, for these been determined if the Department had TRB parts (code ‘‘4’’) in our data base. final results we have examined whether reviewed those sales of merchandise Therefore, because NTN’s sales of home Koyo reported any ID values for its U.S. during the POR. The Department will market TRB parts were not needed for cups or OD values for its U.S. cones issue appropriate appraisement comparison purposes, our exclusion of which were greater than zero. We found instructions directly to the Customs these sales from the margin calculations that Koyo had indeed reported values Service. was appropriate and does not constitute greater than zero for both the OD of its Furthermore, the following deposit an error as NTN alleges. U.S. cones and the IDs of its U.S. cups. requirements will be effective after the Comment 43: Timken argues that, As a result, we have set the value of any publication date of these final results for while the Department’s computer positive inside cup diameters or all shipments of TRBs from Japan program for Koyo properly sets the positive outside cone diameters to zero entered, or withdrawn from warehouse, inside diameter (ID) for home market in Koyo’s U.S. summary sales databases. for consumption on or after the TRB cups and the outside diameter (OD) Final Results of Reviews publication date of the final results of for home market TRB cones to zero, the these administrative reviews, as program fails to do the same for Koyo’s Based on our review of the arguments provided by section 751(a)(1) of the Act: reported U.S. sales of TRB cups and presented above, for these final results (1) The cash deposit rates for the cones. Timken asserts that, because the we have made changes in our reviewed companies will be those rates inside and outside diameters are two of preliminary margin calculation established in the final results of these the five physical criteria relied upon in programs. We determine that the reviews; the Department’s model-match following percentage weighted-average (2) For previously reviewed or methodology, this error will cause margins exist for the period October 1, investigated companies not listed above, distortions when the Department 1995 through September 30, 1996: the cash deposit rate will continue to be

VerDate 02-DEC-97 17:12 Jan 14, 1998 Jkt 010199 PO 00000 Frm 00028 Fmt 4701 Sfmt 4703 E:\FR\FM\P15JA3.PT2 15jan2 Federal Register / Vol. 63, No. 10 / Thursday, January 15, 1998 / Notices 2585 the company-specific rate published for From Japan, 58 FR 51061 (September of the Act (19 U.S.C. 1675(a)(1)) and 19 the most recent period; 30, 1993)). CFR 353.22. (3) If the exporter is not a firm The cash deposit rate has been This notice also serves as a reminder covered in these reviews, a prior review, determined on the basis of the selling to parties subject to administrative or the less-than-fair-value (LTFV) price to the first unaffiliated U.S. protective orders (APO) of their investigations, but the manufacturer is, customer. For appraisement purposes, responsibility concerning the return or where information is available, the the cash deposit rate will be the rate destruction of proprietary information Department will use the entered value established for the most recent period disclosed under APO in accordance of the merchandise to determine the for the manufacturer of the with 19 CFR 353.34(d) or conversion to assessment rate. merchandise; and judicial protective order is hereby This notice serves as a final reminder requested. Failure to comply with the (4) If neither the exporter nor the to importers of their responsibility to regulations and terms of an APO is a manufacturer is a firm covered in these file a certificate regarding the violation which is subject to sanction. or any previous reviews conducted by reimbursement of antidumping duties These administrative reviews and this the Department, the cash deposit rate for prior to liquidation of the relevant notice are in accordance with section the A–588–054 case will be 18.07 entries during this review period. 751 (a)(1) of the Act (19 U.S.C. percent, and 36.52 percent for the A– Failure to comply with this requirement 1675(a)(1) and 19 CFR 353.22. 588–604 case (see Preliminary Results of could result in the Secretary’s Antidumping Duty Administrative presumption that reimbursement of Dated: January 7, 1998. Reviews; Tapered Roller Bearings, antidumping duties occurred and the Robert S. LaRussa, Finished and Unfinished, and Parts subsequent assessment of double Assistant Secretary for Import Thereof, from Japan and Tapered Roller antidumping duties. These Administration. Bearings, Four Inches or less in Outside administrative reviews and this notice [FR Doc. 98–944 Filed 1–14–98; 8:45 am] Diameter, and Components Thereof, are in accordance with section 751(a)(1) BILLING CODE 3510±DS±P

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DEPARTMENT OF EDUCATION Research and Innovation to Improve Under this absolute priority, the Services and Results for Children With Secretary expects to fund projects across Notice Inviting Applications for New Disabilities the full range of age, disability, and Awards for Fiscal Year 1998 [CFDA No. 84.324] service issue categories. In addition, the Secretary intends, under section AGENCY: Department of Education. Purpose of Program 661(e)(2) of IDEA, to fund a limited ACTION: Notice inviting applications for number of projects in each of the focus new awards for fiscal year 1998. To produce, and advance the use of, knowledge to: (1) Improve services areas listed below. An applicant that SUMMARY: On June 4, 1997, the President provided under IDEA, including the chooses to address one or more of the signed into law Pub. L. 105–17, the practices of professionals and others focus areas listed below should identify Individuals with Disabilities Education involved in providing those services to in their application the focus area or Act Amendments, amending the children with disabilities; and (2) areas they select on the cover sheet of Individual with Disabilities Education improve educational and early their application. Act (IDEA). intervention results for infants, toddlers, Focus Area 1—Early Intervention and This notice provides closing dates and and children with disabilities. Early Childhood other information regarding the transmittal of applications for a fiscal Eligible Applicants Projects under this focus area support models that identify and address one or year 1998 competition under one State and local educational agencies; more of the changes included in the program authorized by IDEA, as institutions of higher education; other IDEA Amendments passed in 1997 that amended. The Office of Special public agencies; private nonprofit may affect the delivery of services for Education Programs (OSEP) has, in prior organizations; outlying areas; freely young children with disabilities (ages years, announced priorities for the associated States; and Indian tribes or birth through nine). Examples of support of model demonstration tribal organizations. projects under several of the programs changes in IDEA that may affect young authorized by IDEA. This priority Applicable Regulations children with disabilities and their consolidates the similar model (a) The Education Department General families include, but are not limited to: (1) The implementation and impact of demonstration priority requirements Administrative Regulations (EDGAR) in Individualized Family Service Plans among the various programs. By 34 CFR parts 74, 75, 76, 77, 80, 81, 82, (IFSP), Individualized Education consolidating multiple priorities and 85, and 86; and (b) The selection criteria Programs, and transition requirements announcements into one, OSEP included in regulations in 34 CFR that become effective in July of 1998; endeavors to avoid unnecessary 324.32. duplication and provide consistent and Note: The regulations in 34 CFR Part 86 (2) The increased access of infants information for all model demonstration apply to institutions of higher education and toddlers to service delivery in competitions. This approach reflects the only. natural environments. IDEA amendments of 1997, which Priority Projects under this program are consolidated fourteen separate required to evaluate their effectiveness. discretionary programs into six, in order Under sections 661(e)(2) and 672 of Where appropriate, the Secretary to ensure a broader coverage of the full IDEA and 34 CFR 75.105(c)(3), the particularly encourages projects under range of children with disabilities, and Secretary gives an absolute preference to this focus area to include information to provide greater flexibility in the applications that meet the following related to the following measures— administration of the program. The priority. The Secretary funds under this (a) Changes in the percentage of priority under this program is based on competition only those applications that families receiving all services identified the statutory provisions in IDEA or on meet this absolute priority: on the IFSP and reporting that their previously published priorities for Absolute Priority—Model services are timely and coordinated; which public comment was sought and Demonstration Projects for Children (b) Changes in the percentage of received. Only changes authorized by With Disabilities (84.324M) parents who are satisfied with their IDEA were made to priorities previously child’s education; and published. This priority supports model (c) Changes in the number of infants, demonstration projects that develop, Waiver of Rulemaking toddlers, and young children with implement, evaluate, and disseminate disabilities, primarily receiving services It is generally the practice of the new or improved approaches for in natural environments, making the Secretary to offer interested parties the providing early intervention, special transition at age 3 to inclusive settings, opportunity to comment on proposed education and related services to and participating in regular education priorities. However, section 661(e)(2) of infants, toddlers, and children with programs, as a result of the model IDEA makes the Administrative disabilities, ages birth through 21. project. Procedure Act (5 U.S.C. 553) Projects supported under this priority The Secretary intends to make inapplicable to the priority in this are expected to be major contributors of approximately 3 awards in Focus Area notice. In order to make awards on a models or components of models for 1. timely basis, the Secretary has decided service providers and for outreach to publish this priority in final under projects funded under the Individuals Focus Area 2—Instructional Models to the authority of section 661(e)(2). with Disabilities Education Act. Improve Early Reading Results for This notice supports the National Under the Government Performance Children with Learning Disabilities Education Goals by improving and Results Act (GPRA), OSEP is Children with learning disabilities understanding of how to enable developing performance measures for typically need highly purposeful, children with disabilities to reach programs authorized by Part D of IDEA. strategic, systematic, and carefully higher levels of academic achievement. This absolute priority includes designed instruction to learn to read. Note: The Department of Education is not measures that may be used to This focus area supports newly- bound by any estimates in this notice. implement the GPRA. developed models to improve the early

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The models must Emotional Disturbance that successful participation by students incorporate research-based principles of Projects under Focus Area 4 support with disabilities in vocational education phonemic awareness, alphabetic school and community-based service and higher-level academic programs understanding and knowledge, the delivery systems for children with or at improved outcomes in employment, appreciation of meaning, and reflect the risk of emotional disturbance, that postsecondary education, independent following research based principles: implement the targets of the National living, and community participation. create appreciation of the written word; Agenda for Achieving Better Results for Under Focus Area 5, projects will be develop awareness of printed language; Children and Youth with Serious supported to develop and demonstrate learn the alphabet; understand the Emotional Disturbance (U.S. effective strategies for— (a) Incorporating instructional relation of letters and words; Department of Education, 1994) to: (a) objectives into the IEP that address the understand that language is made of Expand positive learning opportunities needs and preferences of the student, words, syllables, and phonemes; learn and results; (b) Strengthen school and beginning at age 14; letter sounds; sound out new words; community capacity; (c) Value and (b) Specifying a role for the general identify words in print accurately and address diversity; (d) Collaborate with easily; know spelling patterns; and learn education teacher in this process; families; (e) Promote appropriate (c) To the extent appropriate, to read critically. assessment; (f) Provide ongoing skill Projects under this program are employing strategies for accessing the development and support; and (g) general education curriculum to achieve required to evaluate their effectiveness. Create comprehensive and collaborative Where appropriate, the Secretary instructional objectives; and systems. (d) Employing strategies for particularly encourages projects under The targets and cross-cutting themes this focus area to include information evaluating student progress within of the Agenda were reinforced in IDEA instructional settings toward transition- related to the following measures— with the emphasis on interagency (a) Multiple measures of student’s related goals or objectives or both. collaboration, and on early intervention Projects under this program are beginning reading knowledge and skills; and prevention. (b) The extent to which children with required to evaluate their effectiveness. Projects under this program are Where appropriate, the Secretary learning disabilities access the general required to evaluate their effectiveness. education curriculum, including particularly encourages projects under Where appropriate, the Secretary this focus area to include information participation in national and State particularly encourages projects under assessments; and related to the following measures— this focus area to include information (a) Changes in the percentage of (c) Descriptions of the instructional related to the following measures— children with disabilities participating models, including basal reading (a) Decreases in the percentage of in core academic subjects (i.e., the programs, supplemental materials, and children who are suspended or subjects required for high school instructional approaches. expelled; and graduation); The Secretary intends to make (b) Improvements in identification, (b) Changes in the percentage of approximately 3 awards in Focus Area early intervention, and prevention of children with disabilities, ages 14 and 2. emotional disturbance. older, whose IEPs include courses of Focus Area 3—Appropriate Services for The Secretary intends to make study for advanced placement or Children with Deaf-Blindness approximately 3 awards in Focus Area vocational education programs; 4. (c) Changes in the percentage of This focus area supports model children with disabilities, ages 14 and projects to meet the needs of children Focus Area 5—Secondary School Services for Children with Disabilities older, who have IEP statements of with deaf-blindness. Projects may student progress toward transition- include, for example, related services Among the Amendments to the IDEA related goals; such as assistive technology, innovative passed in 1997 were changes to the (d) Changes in student progress on approaches to addressing language and requirements in the IEP that take effect outcomes as measured by State or communication, sensory functioning, on July 1, 1998. The law now requires, district-wide assessments of all and orientation and mobility skills for beginning at age 14, ‘‘a statement of the students; students attending their local schools. transition service needs of the child (e) Changes in the accumulation of Projects may address the heterogeneous under the applicable components of the credits toward graduation with a nature of the students’ needs, ranging child’s IEP that focuses on the child’s diploma or progress indicators for the from advanced curricula for some courses of study (such as participation awarding of certificates; and students to lifelong support for others. in advanced-placement courses or a (f) Changes in attendance and dropout Projects are required to evaluate their vocational education program)’’ (section statistics for participants. effectiveness. Where appropriate, the 614(d)(1)(A)(vii)(i)). This change focuses The Secretary intends to make Secretary particularly encourages attention on how the child’s educational approximately 3 awards in Focus Area projects under this focus area to include program can be planned to help the 5. information related to the following child succeed in secondary school and measures: make a successful transition to his or Focus Area 6—Two-Year Postsecondary (a) Changes in family satisfaction with her goals for life after secondary school. Institutions. the provision of services and the child’s With the provision of improved services The 1992–93 National Postsecondary education; and beginning early in secondary school, Student Aid Survey (NPSAS), reports (b) Changes in the teacher’s there is sufficient time to achieve that 71 percent of students with assessment of the provision of services. desired post-school results through a disabilities attending institutions of The Secretary intends to make carefully planned and integrated higher education are enrolled in two- approximately 3 awards in Focus Area program of proper instruction, related year institutions. This figure represents 3. services, and community experience. an 8 percent increase in two-year

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Further, there of children served under IDEA, Part C that are based on theory, research, or is a continuing need to strengthen within the geographic area served by the evaluation data; linkages with secondary education, project; and (b) Evaluate the model by using vocational rehabilitation, TRIO (d) Changes in the collaborative multiple measures of results to programs, four-year colleges and efforts and linkages to other agencies in determine the effectiveness of the model universities, and other State and local States that provide services for infants and its components or strategies. With agencies, resources, and service-delivery and toddlers at-risk for disabilities. the exception of projects under focus systems. The Secretary intends to make area 7, Local and State Child Fund, all Projects must address the needs of approximately 3 awards in Focus Area projects must include measures of students with disabilities attending two- 7. individual child change and other year institutions of higher education. Focus Area 8—Inclusive Schooling indicators of the effects of the model For example, projects under this focus Practices in Urban and Rural School (e.g., family outcomes, peer outcomes, may: establish outreach strategies to Districts teacher outcomes), and cost data recruit students from secondary associated with implementing the Projects under this Focus Area education settings into two-year model; and demonstrate innovative strategies for institutions; develop innovative (c) Produce detailed procedures and implementing inclusive schooling supports and services to improve materials that would enable others to practices, including preschool practices, academic performance, retention, and replicate the model. as components of systemic education program completion rates; improve Federal financial participation for a reform in urban and rural school educational access through assistive project funded under this priority will districts. For example, projects under technology and distance learning; not exceed 90 percent of the total this Focus may demonstrate: innovative establish linkages with four-year annual costs of development, operation, supports and services as part of institutions to facilitate further and evaluation of the project. systemic education reform to improve academic study; and establish Applicants and resulting projects academic performance and results for collaborations with employers, must involve individuals with students in inclusive settings; processes vocational rehabilitation, community- disabilities or parents of individuals and means for general and special based organizations, and other relevant with disabilities in planning, education to create a unified system in agencies and service-delivery systems. implementing, and evaluating the order to support school reform and the Projects under this program are projects. (See section 661(f)(1)(A) of inclusion of students with severe required to evaluate their effectiveness. IDEA.) disabilities in inclusive settings; Where appropriate, the Secretary All projects funded under this priority inventive methods for interagency particularly encourages projects under must make positive efforts to employ collaboration and service coordination this focus area to include information and advance in employment qualified in support of systemic reform for the related to the following measure: individuals with disabilities in inclusion of students with disabilities in Changes in the percentage of students programs assisted under this Act. (See their community schools; and with disabilities entering and section 606 of IDEA.) innovative approaches to the successfully completing two-year Projects must budget for two trips involvement of the community and postsecondary education programs, and annually to Washington, D.C., for: (1) A families in support of systemic reform transferring to four-year institutions or two-day project directors’ meeting; and and implementation of inclusive employment as a result of the model (2) a meeting to collaborate with the schooling practices. project. Federal project officer and the other Projects under this program are projects funded under this priority, to The Secretary intends to make required to evaluate their effectiveness. share information and discuss project approximately 3 awards in Focus Area Where appropriate, the Secretary implementation issues. 6. particularly encourages projects under Applications Available: January 23, Focus Area 7—Local or State Child Find this focus area to include information 1998. related to the following measures: Deadline for Transmittal of Projects under this Focus Area (a) Changes in the percentage of Applications: March 13, 1998. support development of local or State children with disabilities who Deadline for Intergovernmental Child Find models to identify all participate in the general curriculum Review: May 13, 1998. eligible children under IDEA, Part C, most of their day; Estimated Number of Awards: 36. currently Part H of IDEA. Projects must (b) Changes in the percentage of Project Period: Up to 48 months. test and describe the environments and children with disabilities in the regular Maximum Award: The Secretary strategies that promote successful child classroom with (appropriate) supports rejects and does not consider an find practices. and accommodations and adaptive application that proposes a budget Projects under this program are instructional methods; and exceeding $150,000 (exclusive of any required to evaluate their effectiveness. (c) Changes in the percentage of matching funds) for any single budget Where appropriate, the Secretary children with disabilities who period of 12 months. However, because particularly encourages projects under participate in other school functions as of budgetary considerations contingent this focus area to include information a result of the model project. upon congressional action, the Secretary related to the following measures— The Secretary intends to make may change the maximum amount (a) Changes in the number of children approximately 3 awards for this through a notice published in the served under Part C, ages birth to 3; competitive priority. Federal Register.

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Page Limit: Part III of the application, uses a smaller print size, spacing, or Education documents published in the the application narrative, is where an margin that would make the narrative Federal Register, in text or portable applicant addresses the selection exceed the equivalent of the page limit, document format (pdf) on the World criteria that are used by reviewers in the application will not be considered Wide Web at either of the following evaluating the application. An applicant for funding. sites: must limit Part III to the equivalent of For Applications and General http://ocfo.ed.gov/fedreg.htm http:// no more than 40 double-spaced number Information Contact: Requests for www.ed.gov/news.html of pages, using the following standards: applications and general information To use the pdf you must have the (1) A ‘‘page’’ is 81⁄2′′ x 11′′ (on one side should be addressed to the Grants and Adobe Acrobat Reader Program with only) with one-inch margins (top, Contracts Services Team, 600 Search, which is available free at either bottom, and sides). (2) All text in the Independence Avenue, S.W., room of the previous sites. If you have application narrative, including titles, 3317, Switzer Building, Washington, questions about using the pdf, call the headings, footnotes, quotations, D.C. 20202–2641. The preferred method U.S. Government Printing Office toll references, and captions, as well as all for requesting information is to FAX free at 1–888–293–6498. text in charts, tables, figures, and your request to: (202) 205–8717. Anyone may also view these graphs, must be double-spaced (no more Telephone: (202) 260–9182. documents in text copy only on an Individuals who use a than 3 lines per vertical inch). If using electronic bulletin board of the telecommunications device for the deaf a proportional computer font, use no Department. Telephone: (202) 219–1511 (TDD) may call the TDD number: (202) smaller than a 12-point font, and an or, toll free, 1–800–222–4922. The 205–8953. Individuals with disabilities average character density no greater documents are located under Option may obtain a copy of this notice or the than 18 characters per inch. If using a G—Files/Announcements, Bulletins, application packages referred to in this nonproportional font or a typewriter, do and Press Releases. notice in an alternate format (e.g. not use more than 12 characters to the Braille, large print, audiotape, or Note: The official version of a document is inch. the document published in the Federal computer diskette) by contacting the Register. The page limit does not apply to Part Department as listed above. However, I—the cover sheet; Part II—the budget Program Authority: Sections 672 and 673 the Department is not able to reproduce of IDEA. section (including the narrative budget in an alternate format the standard Dated: November 19, 1997. justification); Part IV—the assurances forms included in the application and certifications; or the one-page package. Howard Moses, abstract, re´sume´s, bibliography, and Acting Assistant Secretary for Special letters of support. However, all of the Electronic Access to This Document Education and Rehabilitative Services. application narrative must be included Anyone may view this document, as [FR Doc. 98–960 Filed 1–14–98; 8:45 am] in Part III. If an application narrative well as all other Department of BILLING CODE 4000±01±P

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Reader Aids Federal Register Vol. 63, No. 10 Thursday, January 15, 1998

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Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202±523±5227 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since E-mail [email protected] the revision date of each title. 61...... 1890 Laws 3 CFR 70...... 1890 For additional information 523±5227 Administrative Orders: 71...... 1890 Notice of January 2, Presidential Documents 72...... 1890 1998 ...... 653 110...... 1890 Executive orders and proclamations 523±5227 150...... 1890 The United States Government Manual 523±5227 5 CFR Proposed Rules: 251...... 2305 430...... 2186 551...... 2304 Other Services 708...... 374 Proposed Rules: Electronic and on-line services (voice) 523±4534 890...... 446 12 CFR Privacy Act Compilation 523±3187 560...... 1051 TDD for the hearing impaired 523±5229 7 CFR 301...... 1, 1321 Proposed Rules: 925...... 655 309...... 29 ELECTRONIC BULLETIN BOARD 930...... 399 563...... 563 Free Electronic Bulletin Board service for Public Law numbers, 966...... 139 563b...... 563 Federal Register finding aids, and list of documents on public 980...... 139 14 CFR inspection. 202±275±0920 1930...... 2135 39 .....4, 658, 1335, 1337, 1735, FAX-ON-DEMAND Proposed Rules: 610...... 446 1737, 1738, 1901, 1903, You may access our Fax-On-Demand service with a fax machine. 868...... 2353 1905, 1907, 1909, 1911, There is no charge for the service except for long distance 1301...... 1396 1912, 1913 telephone charges the user may incur. The list of documents on 61...... 660 public inspection and the daily Federal Register’s table of 8 CFR 71 ...... 924, 1884, 1915, 1916, contents are available. The document numbers are 7050-Public 103...... 1331 1997, 2136, 2137, 2138 Inspection list and 7051-Table of Contents list. The public 212...... 1331 91...... 1917, 2304 inspection list is updated immediately for documents filed on an 214...... 1331 93...... 1917 emergency basis. 235...... 1331 97...... 666, 2139 274a...... 1331 119...... 4 NOTE: YOU WILL ONLY GET A LISTING OF DOCUMENTS ON 121 ...... 4, 1917, 2304 FILE. Documents on public inspection may be viewed and copied Proposed Rules: 103...... 1775 135...... 4, 1917 in our office located at 800 North Capitol Street, NW., Suite 700. 142...... 2304 The Fax-On-Demand telephone number is: 301±713±6905 9 CFR Proposed Rules: 3...... 1 25...... 2186 FEDERAL REGISTER PAGES AND DATES, JANUARY 92...... 1889 39 ...... 167, 169, 171, 172, 174, 93...... 1889 1070, 1072, 1074, 1076, 1±138...... 2 94...... 406, 1889 1930 139±398...... 5 95...... 1889 91...... 126 399±654...... 6 96...... 406, 1889 121...... 126 655±1050...... 7 97...... 1889 125...... 126 1051±1320...... 8 98...... 1889 129...... 126 130...... 1889 1321±1734...... 9 15 CFR 1735±1888...... 12 145...... 2 1889±2134...... 13 147...... 2 732...... 2452 740...... 2452 2135±2304...... 14 310...... 1735 742...... 2452 2305±2592...... 15 319...... 147 Proposed Rules: 743...... 2452 304...... 1797 744...... 2452 305...... 1797 746...... 2452 310...... 1800 762...... 2452 327...... 1797 774...... 2452 335...... 1797 902...... 290, 667 381...... 1797 16 CFR 500...... 1797 Proposed Rules: 10 CFR Ch. I ...... 1802 30...... 1890 303...... 447, 449 32...... 1890 1210...... 1077 40...... 1890 50...... 1335, 1890 17 CFR 52...... 1890 Ch. II ...... 451 60...... 1890 240...... 1884

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Proposed Rules: 31 CFR 61...... 2194 76...... 1943 1...... 695, 2188 103...... 1919 62...... 2195 90...... 770 63...... 2194 95...... 770 20 CFR 33 CFR 73...... 714 200...... 2140 117 ...... 1746, 2141, 2308 122...... 1536 48 CFR Proposed Rules: 123...... 1536 Proposed Rules: 4...... 1532 200...... 34 165...... 1089 42 CFR 6...... 1532 8...... 1399 21 CFR 405...... 687 35 CFR 12...... 1532 510...... 408 411...... 1646 115...... 2141 13...... 1532 520...... 148, 408 413...... 292, 1379 117...... 2141 16...... 1532 558...... 408, 2306 440...... 292 119...... 2141 19...... 1532 Proposed Rules: 441...... 292 Proposed Rules: 32...... 1532 489...... 292 101...... 1078 133...... 186 33...... 1532 201...... 176 135...... 186 Proposed Rules: 41...... 1532 411...... 1659 42...... 1532 22 CFR 36 CFR 424...... 1659 43...... 1532 435...... 1659 40...... 669 1151...... 1924 49...... 1532 455...... 1659 41...... 669 1153...... 1924 52...... 1532 1001...... 187 53...... 648, 1532 23 CFR 1155...... 1924 1505...... 690 1191...... 2000, 2060 43 CFR 1327...... 149 1514...... 690 37 CFR Proposed Rules: 1535...... 418 24 CFR 3100...... 1936 203...... 1926 1537...... 690 3106...... 1936 207...... 1302 253...... 2142 1548...... 690 251...... 1302 3130...... 1936 1552 ...... 418, 690, 691, 1532 252...... 1302 38 CFR 3160...... 1936 Proposed Rules: 255...... 1302 Ch. XXVIII...... 1399 3...... 412, 413 44 CFR 266...... 1302 44...... 649 Proposed Rules: 39 CFR 11...... 1063 922...... 386 81...... 1997 952...... 386 111...... 153 45 CFR 255...... 2304 970...... 386 26 CFR 1301...... 2312 1 ...... 6, 409, 411, 671, 1054, 40 CFR 1304...... 2312 49 CFR 1740, 1917 1305...... 2312 9 ...... 673, 926, 1059, 1318 10...... 2171 40...... 24 1306...... 2312 51...... 414, 1362 173...... 1884 48...... 24 1630...... 1532 52 ...... 26, 414, 415, 674, 1060, 382...... 2172 602...... 6, 1917 Proposed Rules: 1362, 1369, 1927, 2146, 393...... 1383 Proposed Rules: 302...... 187 2147 571...... 27 1.....35, 39, 42, 453, 707, 1803, 303...... 187 60...... 414, 1746 653...... 418 1932, 1933 304...... 187 61...... 414, 1746 654...... 418 54...... 708 62...... 2154 301...... 1086 47 CFR Proposed Rules: 63...... 1746 232...... 195, 1418 68...... 640 0...... 990 29 CFR 571...... 46 85...... 926 1 ...... 990, 2170, 2315 1610...... 1610 86...... 926 21...... 2315 1910...... 1152 140...... 1318 24...... 2170, 2315 50 CFR 1926...... 1152, 1919 180 .....156, 416, 417, 676, 679, 26...... 2315 17...... 692, 1752 4044...... 2307 1369, 1377, 1379, 2156, 27...... 2315 32...... 2178 2163 36...... 2094 226...... 1388 30 CFR 185...... 2163 54...... 162, 2094 285...... 667 924...... 1342 186...... 1379, 2163 69...... 2094 600...... 419 Proposed Rules: 228...... 682 73 ...... 164, 160, 2350, 2351 622 ...... 290, 443, 1772 Ch. II ...... 185 244...... 683 90...... 2315 648 ...... 444, 1773, 2182, 2184 56...... 290 245...... 683 95...... 2315 660...... 419 57...... 290 271...... 683, 2167 Proposed Rules: Proposed Rules: 62...... 290 712...... 684 1...... 460, 770 17...... 1418, 1948 70...... 290 716...... 684 21...... 770 222...... 1807 71...... 290 721 ...... 673, 685, 686 24...... 770 227...... 1807 904...... 1396 Proposed Rules: 26...... 770 300...... 1812 918...... 712 52 ...... 456, 714, 1091, 1804, 27...... 770 622...... 1813 936...... 454, 1399 1935, 2194 64...... 1943 648...... 466 944...... 2192 60...... 2194 73 ...... 193, 194, 2354, 2355 660...... 2195

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REMINDERS Individuals with Disabilities due by 1-21-98; The items in this list were COMMENTS DUE NEXT Education Act published 11-18-97 editorially compiled as an aid WEEK Amendments of 1997; FEDERAL ELECTION to Federal Register users. implementationÐ COMMISSION Inclusion or exclusion from AGRICULTURE State assistance and Contribution and expenditure this list has no legal DEPARTMENT preschool grants for limitations and prohibitions: children with disabilities significance. Agricultural Marketing Corporate and labor programs and early Service organizationsÐ intervention program for Mushroom promotion, Association member; RULES GOING INTO infants and toddlers definition; comments research, and consumer with disabilities; EFFECT JANUARY 15, information order; due by 1-21-98; comments due by 1-20- published 12-22-97 1998 referendum procedures; 98; published 10-22-97 comments due by 1-22-98; Qualified nonprofit published 12-23-97 ENVIRONMENTAL corporations; comments COMMERCE DEPARTMENT Spearmint oil produced in Far PROTECTION AGENCY due by 1-23-98; Export Administration West; comments due by 1- Air quality implementation published 12-10-97 Bureau 23-98; published 12-24-97 plans; approval and FEDERAL EMERGENCY Export licensing: Tomatoes grown in Florida promulgation; various MANAGEMENT AGENCY States: Disaster assistance: Commerce control listÐ and imported; comments due by 1-20-98; published California; comments due by Fire suppression assistance; Wassenaar Arrangement 12-18-97 1-22-98; published 12-23- eligibility process List of Dual-Use Items; 97 simplified and Federal implementation; AGRICULTURE DEPARTMENT Colorado; comments due by cost share changed; commerce control list 1-22-98; published 12-23- comments due by 1-23- revisions and reporting Animal and Plant Health Inspection Service 97 98; published 11-24-97 requirements; published Public assistance and 1-15-98 Exportation and importation of Illinois; comments due by 1- animals and animal 22-98; published 12-23-97 hazard mitigation grant FEDERAL products: New York; comments due programs; appeals review COMMUNICATIONS and disposition Bovine spongiform by 1-21-98; published 12- COMMISSION procedures; comments encephalopathy; disease 22-97 due by 1-23-98; published Common carrier services: status changeÐ Texas; comments due by 1- 11-24-97 Competitive bidding Belgium; comments due 20-98; published 12-19-97 FEDERAL RESERVE procedures; published 1- by 1-20-98; published Pesticides; tolerances in food, SYSTEM 15-98 11-18-97 animal feeds, and raw Truth in lending (Regulation Plant-related quarantine, agricultural commodities: HEALTH AND HUMAN Z): domestic: Fenarimol; comments due SERVICES DEPARTMENT Official staff commentary; Mediterranean fruit fly; by 1-20-98; published 11- Children and Families update; comments due by comments due by 1-20- 18-97 Administration 1-20-98; published 12-9- 98; published 11-20-97 Fomesafen; comments due Head Start Program: 97 AGRICULTURE by 1-20-98; published 11- HOUSING AND URBAN Early Head Start program; DEPARTMENT 19-97 DEVELOPMENT performance standards for Natural Resources Hydroprene; comments due DEPARTMENT grantees and agencies Conservation Service by 1-20-98; published 11- Fair housing: providing services; Technical assistance: 19-97 implementation; correction; Fair Housing Act violations; State Technical Committees; Superfund program: published 1-15-98 civil penalties; comments membership and role National oil and hazardous due by 1-20-98; published HEALTH AND HUMAN expansion substances contigency 12-18-97 SERVICES DEPARTMENT Comment period planÐ Single Audit Act Amendments Food and Drug extension; comments Uncontrolled hazaradous of 1996; implementation: due by 1-23-98; Administration waste sites; listing and Audits of States, local published 1-6-98 Animal drugs, feeds, and deletion policy for governments, and non- related products: AGRICULTURE Federal facilities; profit organizations DEPARTMENT Chloretracycline, comments due by 1-23- expending Federal Rural Utilities Service sulfathiazole, penicillin; 98; published 11-24-97 awards; comments due by published 1-15-98 Electric, telecommunications, FARM CREDIT 1-20-98; published 11-18- and water and waste ADMINISTRATION 97 PERSONNEL MANAGEMENT financial assistance INTERIOR DEPARTMENT OFFICE Farm credit system: programs; environmental Fish and Wildlife Service policies and procedures; Loan policies and Organizations representing Endangered and threatened comments due by 1-23-98; operationsÐ Federal employees and species: other organizations; agency published 11-24-97 Interest rates and Mobile River Basin, AL; relationships; published 1- DEFENSE DEPARTMENT charges; comments due by 1-21-98; published cylindrical lioplax, etc. (six 15-98 Engineers Corps 12-22-97 aquatic snails); comments TRANSPORTATION Water resource development due by 1-23-98; published DEPARTMENT projects, public use; FEDERAL 12-19-97 COMMUNICATIONS shoreline use permits; Preble's meadow jumping Federal Aviation COMMISSION Administration flotation materials; mouse; comments due by comments due by 1-20-98; Common carrier services: 1-22-98; published 12-23- Airworthiness directives: published 12-4-97 Satellite communicationsÐ 97 British Aerospace; published EDUCATION DEPARTMENT Ka-band satellite Riparian brush rabbit, etc.; 12-31-97 Special education and application and licensing comments due by 1-20- Fokker; published 12-31-97 rehabilitative services: procedures; comments 98; published 11-21-97

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Rough Popcornflower; Fees based upon capital TRANSPORTATION San Francisco Bay, CA; comments due by 1-20- gains shares or capital DEPARTMENT comments due by 1-20- 98; published 11-20-97 appreciation of client's Federal Railroad 98; published 10-20-97 INTERIOR DEPARTMENT account; exemption; Administration Surface Mining Reclamation comments due by 1-20- Railroad power brakes and and Enforcement Office 98; published 11-19-97 drawbars: LIST OF PUBLIC LAWS Permanent program and Multi-state investment Train and locomotive power abandoned mine land advisers; exemption; braking systems; reclamation plan comments due by 1-20- advanced technology use; The List of Public Laws for submissions: 98; published 11-19-97 two-way end-of-train the 105th Congress, First Session, has been completed. Virginia; comments due by TRANSPORTATION telemetry devices; It will resume when bills are 1-22-98; published 12-23- DEPARTMENT comments due by 1-20- 97 98; published 1-5-98 enacted into Public Law Coast Guard LABOR DEPARTMENT TRANSPORTATION during the second session of Employment and Training Ports and waterways safety: DEPARTMENT the 105th Congress, which Administration Los Angeles Harbor-San convenes on January 27, National Highway Traffic 1998. Welfare-to-work grants; Pedro Bay, CA; safety Safety Administration governing provisions; zone; comments due by Anthropomorphic test devices: comments due by 1-20-98; 1-20-98; published 11-19- Note: A Cumulative List of Side impact test dummies; published 11-18-97 97 Public Laws was published in dynamic crash test; LABOR DEPARTMENT the Federal Register on TRANSPORTATION comments due by 1-22- December 31, 1997. Mine Safety and Health DEPARTMENT 98; published 12-8-97 Administration Federal Aviation TRANSPORTATION Coal and metal and nonmetal Administration DEPARTMENT mine safety and health: Occupational noise exposure Airworthiness directives: Research and Special Public Laws Electronic Programs Administration Report availability; Allison Engine Co.; Notification Service Pipeline safety: comments due by 1-22- comments due by 1-20- (PENS) 98; published 12-23-97 98; published 11-18-97 Facility response plan PERSONNEL MANAGEMENT Boeing; comments due by submissions; reporting OFFICE 1-23-98; published 12-9- cycle changes; comments Prevailing rate systems; 97 due by 1-22-98; published PENS is a free electronic mail 12-24-97 notification service for newly comments due by 1-22-98; British Aerospace; published 12-23-97 Outer Continental Shelf enacted public laws. To comments due by 1-20- subscribe, send E-mail to Retirement, health benefits, 98; published 12-18-97 pipelines; point at which and life insurance, Federal pipeline is subject to [email protected] Eurocopter France; employees: RSPA regulations; with the message: comments due by 1-20- memorandum of Decennial census SUBSCRIBE PUBLAWS-L 98; published 11-21-97 understanding with Interior employees with dual FIRSTNAME LASTNAME appointments; continuity of Fokker; comments due by Department; comments 1-20-98; published 12-18- due by 1-20-98; published coverage requirements; Note: This service is strictly 97 11-19-97 exemption; comments due for E-mail notification of new by 1-23-98; published 12- Saab; comments due by 1- TREASURY DEPARTMENT public laws only. The text of 24-97 20-98; published 12-18-97 Alcohol, Tobacco and laws is not available through SECURITIES AND Class E airspace; comments Firearms Bureau this service. We cannot EXCHANGE COMMISSION due by 1-20-98; published Alcohol; viticultural area respond to specific inquiries Investment advisers: 12-3-97 designations: sent to this address.

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