Pt. 770 15 CFR Ch. VII (1±1±98 Edition) (xii) Evidence of the reputation of the for- identity as a bearing. In this scenario, eign item including, if possible, information the machine or segment of machinery on maintenance, repair, performance, and containing the bearing is the item sub- other pertinent factors. ject to export control requirements. SUPPLEMENT NO. 2 TO PART 768ÐITEMS (3) An anti-friction bearing or bear- ELIGIBLE FOR EXPEDITED LICENSING ing system not incorporated in a seg- PROCEDURES [RESERVED] ment of a machine prior to shipment, but shipped as a component of a com- PART 770ÐINTERPRETATIONS plete unassembled (knocked-down) ma- chine, is considered a component of a Sec. machine. In this scenario, the complete 770.1 Introduction. machine is the item subject to export 770.2 Commodity interpretations. license requirements. 770.3 Interpretations related to exports of (b) Interpretation 2: Classification of technology and software to destinations ``parts'' of machinery, equipment, or other in Country Group D:1. itemsÐ(1) An assembled machine or unit 770.4 Interpretations related to chemical mixturesÐde minimis exceptions exam- of equipment is being exported. In in- ples. stances where one or more assembled machines or units of equipment are AUTHORITY: 50 U.S.C. app. 2401 et seq.; 50 being exported, the individual compo- U.S.C. 1701 et seq.; E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR nent parts that are physically incor- 42767, August 17, 1995). porated into the machine or equipment do not require a license. The license or SOURCE: 61 FR 12920, Mar. 25, 1996, unless otherwise noted. general exception under which the complete machine or unit of equipment § 770.1 Introduction. is exported will also cover its compo- In this part, references to the EAR nent parts, provided that the parts are are references to 15 CFR chapter VII, normal and usual components of the subchapter C. This part provides com- machine or equipment being exported, modity, technology, and software in- or that the physical incorporation is terpretations. These interpretations not used as a device to evade the re- clarify the scope of controls where such quirement for a license. scope is not readily apparent from the (2) Parts are exported as spares, re- Commerce Control List (CCL) (see Sup- placements, for resale, or for stock. In in- plement No. 1 to part 774 of the EAR) stances where parts are exported as and other provisions of the Export Ad- spares, replacements, for resale, or for ministration Regulations. stock, a license is required only if the appropriate entry for the part specifies § 770.2 Commodity interpretations. that a license is required for the in- (a) Interpretation 1: Anti-friction bear- tended destination. ing or bearing systems and specially de- (c) Interpretation 3: Wire or cable cut to signed parts. (1) Anti-friction bearings length. (1) Wire or cable may be in- or bearing systems shipped as spares or cluded as a component of a system or replacements are classified under Ex- piece of equipment, whether or not the port Control Classification Numbers wire or cable is cut to length and (ECCNs) 2A001, 2A002, 2A003, 2A004, whether or not it is fitted with connec- 2A005, and 2A006 (ball, roller, or needle- tors at one or both ends, so long as it roller bearings and parts). This applies is in normal quantity necessary to to separate shipments of anti-friction make the original installation of the bearings or bearing systems and anti- equipment and is necessary to its oper- friction bearings or bearing systems ation. shipped with machinery or equipment (2) Wire or cable exported as replace- for which they are intended to be used ment or spares, or for further manufac- as spares or replacement parts. ture is controlled under the applicable (2) An anti-friction bearing or bear- wire or cable ECCN only. This includes ing system physically incorporated in a wire or cable, whether or not cut to segment of a machine or in a complete length or fitted with connectors at one machine prior to shipment loses its or both ends. 450 VerDate 12<MAR>98 09:04 Mar 13, 1998 Jkt 179050 PO 00000 Frm 00444 Fmt 8010 Sfmt 8010 Y:\SGML\179050.TXT 179050-3 Bureau of Export Administration, Commerce § 770.2 (d) Interpretation 4: Telecommuni- Officer may require evidence that the cations equipment and systems. Control shipment is not scrap. Such evidence equipment for paging systems (broad- may include, but is not limited to, bills cast radio or selectively signalled re- of sale, orders and correspondence indi- ceiving systems) is defined as circuit cating whether the commodities are switching equipment in Category 5 of scrap or are being exported for use as the CCL. parts, accessories, or equipment. (e) Interpretation 5: Numerical control (g) Interpretation 7: Scrap arms, ammu- systemsÐ(1) Classification of ``Numerical nition, and implements of war. Arms, Control'' Units. ``Numerical control'' ammunition, and implements of war, units for machine tools, regardless of as defined in the U.S. Munitions List, their configurations or architectures, and are under the jurisdiction of the are controlled by their functional char- U.S. Department of State (22 CFR parts acteristics as described in ECCN 120 through 130), except for the follow- 2B001.a. ``Numerical control'' units in- ing, which are under the jurisdiction of clude computers with add-on ``motion the Department of Commerce: control boards''. A computer with add- (1) Cartridge and shell cases that on ``motion control boards'' for ma- have been rendered useless beyond the chine tools may be controlled under possibility of restoration to their origi- ECCN 2B001.a even when the computer nal identity by means of excessive alone without ``motion control boards'' heating, flame treatment, mangling, is not subject to licensing require- crushing, cutting, or by any other ments under Category 4 and the ``mo- method are ``scrap''. tion control boards'' are not controlled (2) Cartridge and shell cases that under ECCN 2B001.b. have been sold by the armed services as (2) Export documentation requirement. ``scrap'', whether or not they have been (i) When preparing a license applica- heated, flame-treated, mangled, tion for a numerical control system, crushed, cut, or reduced to scrap by the machine tool and the control unit any other method. are classified separately. If either the machine tool or the control unit re- (3) Other commodities that may have quires a license, then the entire unit been on the U.S. Munitions List are requires a license. If either a machine ``scrap'', and therefore under the juris- tool or a control unit is exported sepa- diction of the Department of Com- rately from the system, the exported merce, if they have been rendered use- component is classified on the license less beyond the possibility of restora- application without regard to the other tion to their original identity only by parts of a possible system. means of mangling, crushing, or cut- (ii) When preparing the Shipper's Ex- ting. When in doubt as to whether a port Declaration (SED), a system being commodity covered by the Munitions shipped complete (i.e., machine and List has been rendered useless, export- control unit), should be reported under ers should consult the Office of Defense the Schedule B number for each ma- Trade Controls, U.S. Department of chine. When either a control unit or a State, Washington, DC 20520, or the Ex- machine is shipped separately, it porter Counseling Division, Office of should be reported under the Schedule Exporter Services, Room 1099A, U.S. B number appropriate for the individ- Department of Commerce, Washington, ual item being exported. DC 20230, before reporting a shipment (f) Interpretation 6: Parts, accessories, as metal scrap. and equipment exported as scrap. Parts, (h) Interpretation 8: Military auto- accessories, or equipment that are motive vehicles and parts for such vehi- being shipped as scrap should be de- clesÐ(1) Military automotive vehicles. (i) scribed on the SED in sufficient detail For purposes of U.S. export controls, to be identified under the proper ECCN. military automotive vehicles ``possess- When commodities declared as parts, ing or built to current military speci- accessories, or equipment are shipped fications differing materially from nor- in bulk, or are otherwise not packaged, mal commercial specifications'' may packed, or sorted in accordance with include, but are not limited to, the fol- normal trade practices, the Customs lowing characteristics: 451 VerDate 12<MAR>98 09:04 Mar 13, 1998 Jkt 179050 PO 00000 Frm 00445 Fmt 8010 Sfmt 8010 Y:\SGML\179050.TXT 179050-3 § 770.2 15 CFR Ch. VII (1±1±98 Edition) (A) Special fittings for mounting ord- under general exception or submitting nance or military equipment; an application to BXA for a license. (B) Bullet-proof glass; (2) [Reserved] (C) Armor plate; (i) Interpretation 9: Aircraft, parts, ac- (D) Fungus preventive treatment; cessories and components. Aircraft, (E) Twenty-four volt electrical sys- parts, accessories, and components de- tems; fined in Categories VIII and IX of the (F) Shielded electrical system (elec- Munitions List are under the export li- tronic emission suppression); or censing authority of the U.S. Depart- (G) Puncture-proof or run-flat tires. ment of State (22 CFR parts 120 (ii) Automotive vehicles fall into two through 130). All other aircraft, and categories. parts, accessories and components (A) Military automotive vehicles on the therefor, are under the export licensing Munitions List, new and used. Auto- authority of the U.S. Department of motive vehicles in this category are Commerce. The following aircraft, primarily combat (fighting) vehicles, parts, accessories and components are with or without armor and/or arma- under the licensing authority of the ment, ``designed for specific fighting U.S.