ML20134C739
| ML20134C739 | |
| Person / Time | |
|---|---|
| Issue date: | 01/30/1996 |
| From: | Hauber R NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | Angelone F MITSUBISHI INTERNATIONAL CORP. |
| Shared Package | |
| ML20134C741 | List: |
| References | |
| NUDOCS 9702040024 | |
| Download: ML20134C739 (19) | |
Text
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0053u9 9
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UNITED STATES s
j NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 2006H001 2AN 3 01996 Mr. Fred Angelone Mitsubishi international Corporation One Oxford Center, Suite 4400 301 Grant Street 1
Pittsburgh, PA 15219-6401
Dear Mr. Angelone:
The following information is provided in response to the questions that you sent December 3 and December 4,1996 to Ms. Betty Wright concerning U.S. export controls on exports of U.S.-origin zirconium material. I have discussed my responses with nuclear export officials at the Departments of State, Commerce, and Energy and the Arms Control and Disarmament Agency and they have no objection.
QUESTION 1.
We would like to confirm whether U.S.-origin " Zirconium Alloy No. 4 Tube Reduced Extrusions" (ZRY-4 TREX) (see enclosure) is stipulated as " Zirconium tubes, i.e., zirconium metal and alloys in the form of tubes or assemblies of tubes especially designed or prepared for use in a nuclear reactor" in (6) of appendix A to part 110-illustrative list of nuclear reactor equipment under NRC export licensing authority and to be exported to Japan in accordance with NRC General License 10 CFR 110.26.
Response: Exports of "ZRY-4 TREX" from the U.S. are controlled by the Nuclear Regulatory Commission under the Atomic Energy Act, as amended, and the implementing regulations set out in 10 CFR Part 110. Item (6) of Appendix A to Part 110 stipulates " Zirconium tubes, i.e., zirconium metal and alloys in the form of tubes or assemblies of tubes especially designed or prepared for use in a nuclear reactor" as equipment under NRC authority. This includes "ZRY-4 TREX." "ZRY-4 TREX" can be exported to Japan under the NRC generallicense in i 110.26.
QUESTION 2.
On the other hand, Trigger List of London Guideline
/
(INFCIRC/254/Rev.1/ Mod.3; Nov.1994) includes " zirconium
/
tubes" in 1.6 of ANNEX B and London Guideline requires
" formal governmental assurance prior to export" in article 2 of g0*J part 1. We would like to know whether " zirconium tubes" made in U.S. are categorized as London Guideline part 1.lf it is categorized, we would like you to advise us of procedure of 030079 N hCN${ CON governmental assurance for export Y-4 TR t,o_ Japan.
g20 g 960130 M
CENERAL PDR
Mr. Angelone Response: Exports of " zirconium tubes" from the U.S. are considered by the U.S.
government as trigger list items on Part 1 of the Nuclear Suppliers Group (NSG) guidelines. The U.S. government, as a matter of policy, has interpreted Part 1 of the guidelines broadly to include " zirconium tube" material that requires further fabrication to final size as items under NRC regulatory jurisdiction. " Zirconium tubes" can be exported to Japan under NRC's general license in i 110.26. All of the countries which have been issued a general license under i 110.26, including Japan, have previously provided written generic assurances to the U.S.
government that satisfy the statutory criteria of the Atomic Energy Act, as amended, and the requirements of the NSG guidelines, Part 1. The U.S.
government considers these written generic assurances, as explained below, as the
" formal governmental assurance prior to export" as required by 1.6 of ANNEX B of the NSG guidelines (INFCIRC/254/Rev.1/ Mod.3) for export of ZRY-4 TREX to Japan. They need not reference an agreement for cooperation.
For the U.S. to consider approval of "ZRY-4 TREX" or " zirconium tube" exports to Japan, the following three criteria, as specified in 10 CFR 110.42(b), must be met to satisfy the statutory requirements of the Atomic Energy Act, as amended: 1)
International Atomic Energy Agency (IAEA) safeguards will be applied with respect to such items; 2) no such items will be used for any nuclear explosive device or for research on or development of any nuclear explosive device; and 3) no such items will be retransferred without the prior approval of the U.S. The U.S. considers that Japan meets the first two criteria as a non-nuclear weapon state party to the Treaty on the Non Proliferation of Nuclear Weapons in good standing with full-scope IAEA safeguards in force. The third criterion is met because the Japanese government has provided prior written generic assurances to the U.S. confirming that any nuclear reactor component proposed for export to Japan will not be retransferred to any other nation or group of nations without prior U.S. approval.
QUESTION 3.
We would like to know whether ZRY-4 FINAL TUBES which are fabricated by Japanese manufacturer and r;onsists of materials which are made in U.S.A. are categorized as (6)in appendix A to part 110--illustrative list of nuclear reactor equipment under NRC export licensing authority. Or may we understand that ZRY-4 FINAL TUBES can be exported from Japan without U.S.
regulation because they are recognized as Japanese origin?
Response: The U.S. considers U.S.-origin ZRY-4 FINAL TUBES as items in Appendix A (6) to Part 110 and in Part 1 of the NSG guidelinas. If such tubes are exported from Japan, they are subject to NRC retransfer regulations. Please see discussion below.
QUESTION 4.
Even in case that ZRY-4 FINAL TUBES are exported to United Kingdom and/or France from Japan by Japanese fabricator as items recognized as U.S. origin, we understand that ZRY-4 FINAL TUBES are able to be exported from Japan to the United Kingdom and/or France under NRC General License 10 CFR 110.6 which stipulates " Retransfer of any nuclear equipment...
requires authorization by the Department of Energy, unless,
Mr. Angilona the export to the destination is authorized under a special license or a aaneral license (underline added) or an exemption from licensing requirements." However, we found that 10 CFR 110.42(b) stipulates "No such equipment or materials will be retransferred...without the prior consent of the United States."
So, we would like you to clarify whether export of ZRY-4 FINAL TUBES from Japan are authorized without any regulation and wish you to advise us of procedures for the authorization.
Response: As stipulated in i 110.6, DOE authorization is not required for a retransfer of nuclear equipment listed in il 110.8 and 110.9 (such as ZRY-4 FINAL TUBES) If the new destination is authorized to receive the nuclear equipment directly from the U.S. under an NRC generallicense. The United Kingdom and France are eligible recipients of direct exports from the U.S. of Section 109b nuclear components under NRC general license in i 110.26. As noted in the discussion in QUESTION 2 above, all of the countries that have been issued a general license under i 110.26 have previously provided the U.S. government written generic assurances that satisfy the statutory criteria of the Atomic Energy Act, as amended, and the requirements of the NSG guidelines, Part 1. " Prior consent" for retransfers under i 110.42(b) has been given with respect to each of these countries in light of the provision of such generic assurances. Therefore, i
U.S.-origin ZRY-4 FINAL TUBES can be retransferred from Japan to the United Kingdom or France without additional U.S. regulation.
QUESTION 1:
We understand that it is possible to retransfer U.S.-origin zirconium metal. (you advised about trax only). However, as we suggested in Question 4, i 110.42(b)(3) states that zirconium tube which is stipulated by Appendix A (6) to Part 110 requires prior consent of U.S. In case of transfer and retransfer as stipulated in i 110.6, request for authority to retransfer is processed by DOE. We wish ycu to check linkage of El 110.6 and 110.42 with DOE and NRC.
Response: Exports of zircon!um metal from the U.S. are regulated by the U.S.
Department of Commerce, not NRC. U.S. export authorities do not consider zirconium metal as a trigger list item. Any reexport from Japan of ZRY-4 TREX or ZRY-4 FINAL TUBES consisting of U.S.-origin zirconium metal would be regulated by Japanese export authorities without additional U.S. regulation. In this regard, -
the U.S. government would presume that all NSG member governments are commited to act responsibly within the context of the NSG guidelines. The U.S.
government considers that both ZRY-4 TREX and ZRY-4 FINAL TUBES are trigger list items on Part 1 of the NSG guidelines.
QUESTION 2:
Ms. Wright advised that she will need to know. exact quantity of US zirconium metal to be retransferred to what country. Please advise us by which article of 10 CFR 110 it is regulated. May we understand that we need to add such retransfer information in yearly report to NRC instead current yearly report of only expert items from U.S. to Japan? Does it also mean that final
I Mr. Ang:lena,
tubes stipulated in our December 3 fax are not recognized as Japanese origin so that you need to obtain prior consent of U.S.
j competent authority?
j Response: U.S. exports of zirconium metal are controlled by the U.S. Department of Commerce; therefore, NRC does not require any reports, including information i
on the quantity of material to be retransferred. Commerce also does not require i
such reports. Reexports from Japan of " final tubes" consisting of U.S.-origin zirconium metal would be made under the export regulations of Japan. Prior U.S.
government consent is not required. Please see discussion in QUESTION 1 above.
l QUESTION 3:
Please check and advise us of applicable part of DOC general license which regulate export / retransfer of ZRY-4 bar and please j
kindly send the part to us as soon as possible. Many thanks.
l j
Responta: According to Mr. Joseph Chuchia, U.S. Department of Commerce, Bureau of Export Administration, assuming the ratio of hafnium to zirconium in ZRY-4 is less than 1 part hafnium to 500 parts of zirconium by weight, the Export Control Commodity Number (ECCN) is 1C234. Exports to Japan may be made j
under the provisions of "No License Required" (NLR) provided that none of the general prohibitions 4 through 10 contained in part 732.3(d) are applicable. The
]
pertinent parts of the Commodity Control list Supp.1 part 774, Country Chart
'j Supp.1 part 738 and general prohibitions part 736.2 are enclosed. Retransfer of ZRY-4 within Japan does not require U.S. government authorization. Reexport from Japan can be made in accordance with the provisions of part 740.11 (enclosed) using license exception Additional Permissive Reexport (APR).
I hope that this information is helpful. If I can be of further assistance, please call me at (301) 415 2344. If you have specific questions regarding Mr. Chuchla's response, I suggest that you contact Mr. Chuchla directly at (202) 482-4188.
Sincerel,
C-onald D. Hauber, Director Nonproliferation, Exports and Multilateral Relations Office of International Programs
Enclosures:
- 1. Description of Materials (from your facsimile dtd 12/3)
- 2. U.S. Department of Commerce Export Regulations
1 1
i
[Information from Mitsubishi's facsimile of December 3,1996 to Ms. Wright) d DESCRIPTION OF MATERIALS:
(1) ZRY-4 TREX to be imported to Japan from US.
1.
Chemical composition:
Allovina Elements Composition Ranae (%)
Tin 1.20 - 1.45 Iron 0.18 - 0.24 Chromium 0.07 - 0.17 i
Iron + Chromium 0.28 - 0.37 Oxygen 0.1000 - 0.1500 Carbon 0.0100 - 0.0160 Silicon 0.0080 - 0.0120 i
Zirconium balance 2,
Dimensions - Two types:
j A. Outer diameter, 31.75 mm; Wall thickness, 5.08 mm; j
Length range of multiples 2.480 mm = 3.800 mm B. Outer diameter, 31.75mm; Wall thickness, 5.08 mm; Length range of multiples 2.370 mm = 3.930 mm t
l (2)
ZRY-4 FINAL TUBES with plug on one side i
1.
Chemical composition: Same as above.
2.
Dimensions - Two types:
i A. Outer diameter,9.525 mm; inner diameter,9.5 mm; Length,4.000 mm j
B. Outer diameter,12.24 mm,10.9 mm and 11.43 mm; Wall thickness,0.348 mm; Length,3.894 mm; 4 holes of 4
i 2.32 mm diameter bored every 90 degrees from center of inside of tube. Outer diameter of tube has three different dimensions.
/
ENCLOSURE 1 j
Commerce Control List Supplement No. I to Part 774-page 42 Lithium enriched in the 6 isotope ('Li) to Note: This entry does not control zirconium a.
greater than 7.5 atom percent, alloys, compounds or mixtures containing lithium enriched in the 6 in the form of foil or strip having a thickness not exceeding 0.10 mm (0.004 in.).
isotope, and products or devices containing any of Items:
the foregoing; except thermoluminescent dosimeters.
- a. Zirconium metal; Note: The natural occurrence of the 6
)
- b. Reserved.
- d. Manufactures of zirconium metal, alloys, or compounds described in IC234.a,.b, or.c; or less than 1 part hafnium to 500 parts zirconium by weight,
- e. Waste and scrap from zirconium metal, alloys, License Requirements:
compounds, or manufactures thereof controlled I
by IC234.a..b,.c, or.d; Reasonfor Control: NP, AT ADVISORY NOTE:
(Not eligible for License Exception GBS) Licenses are likely to be Control (s)
Country Chart approved for export and reexport to satisfactory end users in Country Group D:1 of the following-NP applies to entire entry NP Column 1 Finished parts made of zirconium metal or a.
AT applies to entire entry AT Column I alloys, specially designed for an identified civil research or power reactor facility, provided that:
License Exceptions:
a.l. None of the parts contains fissile LVS: N/A materials; and GBS: N/A CIV: N/A a.2. The importing country has agreed to the l
application of the Safeguards of the International List ofitems Controlled:
Atomic Energy Agency (IAEA) in connection wi h the nuclear reactor facility; t
Unit: Kilograms RelatedControls: N/A
- b. Contained zirconium metal, or parts made Related Definitions: Zirconium metal and then from, in individual shipments not exceeding alloys in the form of tubes or assemblies of 100 i:g, when intended for use in, or in support of, tubes, specially designed or prepared for use an identified civil research or power reactor in a reactor are subject to the export licensing facility, in connection with which it is authority of the Nuclear Regulatory contemplated that IAEA Safeguards would be Commission. (See 10 CFR part i10.)
applied.
N.B.: The provisions of this ADVISORY NOTE notwithstanding, current law prohibits Export Administration Regulations August 1996 ENCLOSURE 2
~-
Commerce Coatrol List Supplement No. I to Part 774-page 43 approval to nuclear production or utilization IC237 Radium-226, radium-226 compounds, facilities in the People's Republic of China.
or mixtures containing radium-226, and products or devices containing any of the foregoing; except medical applicators, or a 1C236 Alpha-emitting radionuclides having product or device containing not more than an alpha half-life of 10 days or greater, but less 0.37 GBq (10 millicuries) of radium-226 in any than 200 years, including compounds and form.
mixtures containing these radionuclides with a total alpha activity of I curie per kilogram (37 License Requirements:
G Bq) or greater; except devices containing less than 3.7 GBq (100 millicuries) of alpha activity Reasonfor Control: NP, AT a
i per device.
Control (s)
Country Chart License Requirements:
NP applies to entire entry NP Column 1 Reasonfor Control; NP, AT AT applies to entire entry AT Column 1 Control (s)
Country Chart License Exceptions:
NP applies to entire entry NP Column 1
'l LVS: N/A AT applies to entire entry AT Column 1 GBS: N/A CIV:
N/A License Exceptions:
List ofItems Controlled:
LVS: N/A GBS: N/A Unit: $ value ClV: N/A Related Controls: N/A RelatedDefinitions: N/A List ofItems Controlled:
Items:
Unit: Millicuries The list of items controlled is contained in the Related Controls:
Alpha emitting ECCN heading.
radionuclides are subject to the export licensing authority of the Nuclear Regulatory Commission. (See 10 CFR part i10.)
1C238 Chlorine trifluoride (C1F ).
3 RelatedDefinitions: N/A Items:
License Requirements:
The list of items controlled is contained in the Reasonfor Control: NP,AT ECCN heading.
Control (s)
Country Chart NP applies to entire entry NP Column 1 AT applies to entire entry.
AT Column 1 August 1996 Export Administration Regulations
i.
Steps for Using the EAR 3732.1 Part 732-page i f732.1 (2) Where is it going? The country of ultimate destination for an export or reexport also STEPS OVERVIEW determines licensing requirements (see parts 738 and 774 of the EAR conceming the Country (a)(1) Introduction Chart and the Commerce Control List).
1 In this part, references to the EAR are references (3) Who will receive it? The ultimate end-user to 15 CFR chapter Vil, subchapter C. This part is of your item cannot be a bad end-user. See intended to help you determine your obligations General Prohibition Four (Denial Orders) in under the EAR by listing logical steps in l732.2
{736.2(b)(4) and parts 744 and 764 of the EAR through 6732.5 of this part that you can take in for a reference to the list of persons you may not reviewing these regulations. By cross-references deal with.
to the relevant provisions of the EAR, this part 9
describes the suggested steps for you to determine (4) What will they do with it? The ultimate applicability of the following:
end-use of your item cannot be a bad end-use.
See General Prohibition Five (End Use End-(i) The scope of the EAR (part 734 of the User) in Q736.2(b)(5) and part 744 of the EAR for EAR);
general end use and end-user restrictions.
(ii) Each of the general prohibitions (part 736 of (5) What else do they do? Conduct such as the EAR);
contracting, financing, and freight forwarding in support of a proliferation project (as described in j
(iii) The License Exceptions (part 740 of the
{744.6 of the EAR) may prevent you from EAR); and dealing with someone.
l (iv) Other requirements such as clearing your (c) Areyour items and activities subject to the l
export with the U.S. Customs Service, keeping EAR?
records, and completing and documenting license applications.
You should first determine whether your commodity, software, or technology is subject to (2) These steps describe the organization of the the EAR (see part 734 of the EAR concerning EAR, the relationship among the provisions of the scope), and Steps I through 6 help you do that.
EAR, and the appropriate order for you to For exports from the United States, only Steps 1 consider the various provisions of the EAR.
and 2 are relevant. If you already know that your item or activity is subject to the EAR, you should (b) Facts aboutyour transaction go on to consider the ten general prohibitions in part 736 of the EAR. If your item or activity is The following five types of facts determine your not subject to the EAR, you have no obligations obligations under the EAR and will be of help to under the EAR and may skip the remaining steps:
you in reviewing these steps.
(d) Doesyour item or activity require a license (1) What is it? What an item is, for export under one or neore ofthe ten general control purposes, depends on its classification, prohibitions?
which is its place on the Commerce Control List (see part 774 of the EAR).
) (1)
Brief summary of the ten general prohibitions. The general prohibitions are found Export Administration Regulations August 1996
_ = - -
Steps for Using the EAR
$732.1 Part 732-page 2 in part 736 of the EAR and referred to in these (2) Controls on items on the Commerce steps.
They consist, very briefly, of the Control List (CCL). If your item or activity is following:
subject to the EAR, you should determine whether any one or more of the ten general i
(i) General Prohibition One (Exports and prohibitions require a license for your export, Reexpons): Export and reexport of controlled reexport, or activity. Steps 7 through 1I refer to items to listed countries.
classification of your item on the Commerce Control List (CCL) (part 774 of the EAR) and (ii)
General Prohibition Two (Parts and how to use the Country Chart (Supplement No.1 Components Reexports): Reexport and export to part 738 of the EAR) to determine whether a from abroad of foreign-made items incorporsting license is required based upon the classification more than a de minimis amount of controlled U.S.
of your item. 'Ihese steps refer to General content.
Prohibitions One (Exports and Reexports), Two (Parts and Components Reexports), and Three (iii)
General Prohibition Three (Foreign-(Foreign-Produced Direct Product Reexports) for produced Direct Product Reexports): Reexport all countries except: Cuba, Iran, Iraq, Libya, and and export from abroad of the foreign-produced North Korea. For these countries, you may skip direct product of U.S. technology and software.
Steps 7 through 11 and go directly to Step 12.
(iv) General Prohibition Four (Denial Orders):
(3) Controls on activities. Steps 12 through 18 Engaging in actions prohibited by a denial order, refer to General Prohibitions Four through Ten.
Those general prohibitions apply to all items (v) General Prohibition Five (End-Use End-subject to the EAR, not merely those items listed User): Export or reexport to prohibited end-user on the CCL in part 774 of the EAR. For example, or end-users, they refer to the general prohibitions for persons denied export privileges, prohibited end uses and (vi)
General Prohibition Six (Embargo):
end-users, embargoed countries (e.g., Cuba, Iran, Export or reexport to embargoed destinations.
Iraq, Libya, and North Korea), prohibited activities of U.S. persons in support of (vii) General Prohibition Seven (U.S. Person proliferation of weapons of mass destruction, Proliferation Activity): Support of proliferation prohibited unlading of shipments, compliance activities, with orders, terms and conditions, and activities when a violation has occurred or is about to (viii) General Prohibition Eight (In-Transit):
occur.
In-transit shipments and items to be untaden from vessels and aircraft.
(4) General prohibitions. If none of the ten general prohibitions applies, you should skip the (ix) General Prohibition Nine (Orders, Terms steps concerning License Exceptions and for and Conditions): Violation of any orders, terms, exports from the United States, review Steps'27 or conditions.
through 29 concerning Shipper's Export Declarations to be filed with the U.S. Customs (x)
General Prohibition Ten (Knowledge Service, Destination Control Statements for Violation to Occur):
Proceeding with export control documents, and recordkeeping transactions with knowledge that a violation has requirements.
occurred or is about to occur.
Esport Administration Regulations August 1996
Commerce Control 1Ast Overview and the Country Chart Sepplesment N. I to Part 738-pate 5 Commerce Country Chart Reason for Control Chemiced & Biological Nucteer Neelonel
^ RNeele Regional Crime Antl.
Countries Wessono NonproONoretion Securky Tech Statsfifty Control Torrertem CR C8 09 NP eF 90 s NS adY R$
Rs CC CC CC AT As Column Column Ceauma Ceaune Ceauma Celumn Ceauma Coeuma Cetumn Cetsen Column Column Colwswe Cohsma Column 1
2 3
1 2
9 2
1 1
2 1
2 3
1 2
Ho"du'a5 X
X X
X X
X X
X X
X l
Hong Kmg X
X X
X X2 X
X X
X X
Hua98'Y X
X X
X X
X X
X
'ce'"ad X
X X
X X
X
'a5*
X X
X X
X X
X X
X X
X X
'adoa*Si X
X X
X X
X X
X X
X Iran See part 746 of the EAR to determine whether a Itcense is required in order to export or reexport to this deshnaton.
""9/
X X
X X
X X
X X
X X
X X
haad X
X X
X X
X X
4 X
X X
X X
X X
X X
X X
X "8'Y X
X X
X Jamaica X
X X
X X
X X
X X
X Jam n X
X X
X t
Jmdan X
X X
X X
X X
X X
X X
Kazakhstan X
X X
X X
X X
X X
X X
Kenya X
X X
X X
X X
X X
X Kinbati X
X X
X X
X X
X X
X Korea. North See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destina90n.
ceseral Prohibitions Part 7.4-page t
$736.1 (c) If you violate any of these ten general i
prohibitions, or engage in other conduct contrary Introduction to the Export Administration Act, the EAR, or any order, license, License Exception, or in this pan, references to the EAR are references authorization issued thereunder, as described in to 15 CFR chapter VII, subchapter C. A person pan 764 of the EAR regarding enforcement, you l
may undertake transactions subject to the EAR will be subject to the sanctions described in that without a license or other authorization, unless part.
the regulations affirmatively state such a require.
ment. As such, if an export, reexport, or activity (736.2 is subject to the EAR, the general prohibitions contained in this part and the License Exceptions General prohibitions and determination of specified in pan 740 of the EAR must be re-applicability viewed to determine if a license is necessary. In the case of all exports from the United States, you (a) Information or facts that determine the must document your expon as described in part qpplicability of the generalprohibitions 762 of the EAR regarding recordkeeping and clear your expon through the U.S. Customs Ser-The following five types of facts determine your vice as described in pan 758 of the EAR obligations under the ten general prohibitions and regarding export clearance requirements. Also the EAR generally:
note that for shon supply controls all prohibitions and License Exceptions are in part 754 of the (1) Classi8estion of the item. The classification EAR.
of the item on the Commerce Control List (see part 774 of the EAR);
(.) In this part we tell you:
(2)
Destination. The country of ultimate (1) The facts that make your proposed expon, destination for an export or reexpon (see parts reexport, or conduct subject to these general 738 and 774 of the EAR concerning the Country prohibitions, and Chart and the Commerce Control List);
(2) The ten general prohibitions.
(3) End-user. The ultimate end-user (see Gen-eral Prohibition Four (paragraph (b)(4) of this (6) Your obligations under the ten general section) and pans 744 and 764 of the EAR for a prohibitions and under the EAR depend in large reference to the list of persons you may not deal part upon the five types of information described with);
in 6736.2(a) of this part and upon the general prohibitions described in 6736.2(b) of this part.
(4) End-use. The ultimate end-use (see General The ten general prohibitions contain cross-Prohibition Five (paragraph (b)(5) of this section) references to other pans of the EAR that further and pan 744 of the EAR for general end-use define the breadth of the general prohibitions.
restrictions); and For that reason, this part is not freestanding. In part 732, we provide certain steps you may follow (5) Conduct. Conduct such as contracting, fi-in proper order to help you understand the general nancing, and freight forwarding in support of a prohibitions and their relationship to other pans proliferation project as described in pan 744 of of the EAR.
the EAR.
Esport Administration Regulations August 1996
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am6 General Prohibitions Part 7%-page 2 terms and conditions of a given License Excep-(6) Genera /prohteltions tion are met by the exporter or reexponer.
The following ten general prohibitions describe (2) General Prohibition Two - Reexport and certain exports, reexports, and other conduct, export from abroad of foreiga-made items subject to the scope of the EAR, in which you incorporating more than a de minimis amount may not engage unless you either have a license of controlled U.S. content (Parts sad Compo-from the Bureau of Export Administration (BXA) seats Reesports).
or qualify under part 740 of the EAR for a Li-I cense Exception from each applicable general (i) You may not, without a license or License prohibition paragraph. De License Exceptions at Exception. export, reexport or export from abroad i
part 740 of the EAR apply only to General any foreign-made commodity, software, or tech-Prohibitions Or,e (Exports and Reexports in the nology incorporating U.S.-origin commodities, i
Form Received), Two (Parts and Components software, or technology respectively that is con-l Reexports), and Hree (Foreign Produced Direct trolled to the country of ultimate destination if the i
Product Reexports); however, selected License foreign-made item meets all three of the follow-Exceptions are specifically referenced and autho-ing conditions:
}
rized in part 746 of the EAR concerning embargo i
destinations and in {744.2(c) of the EAR regard-(A) It incorporates more than the de minimis ing nuclear end-uses.
amount of controlled U.S. content, as defined in Q734.4 of the EAR concerning the scope of the (1) General Prohibition One - Export and EAR; l
reexport of controlled items to listed countries j{
(Exports and Reexports). You may not, without (B) It is controlled for a reason indicated in a license or License Exception, export any item the applicable ECCN;and subject to the EAR to another country or reexport any item of U.S.-origin if each of the following is (C) Its export to the country of destination true:
requires a license for that control reason as indi-cated on the Country Chart. (The scope of this (i) The item is controlled for a reason indicated prohibition is determined by the correct classifi-in the applicable Export Control Classification cation of your foreign-made item and the ultimate Number (ECCN), and destination, as that combination is reflected on the Country Chart.)
(ii) Export to the country of destination re-quires a license for the control reason as indicated (ii) Each License Exception described at part on the Country Chart at part 738 of the EAR.
740 of the EAR supersedes General Prohibition (The scope of this prohibition is determined by One if all terms and conditions of a given License the correct classification of your item and the Exception are met by the exporter or reexporter.
ultimate destination as that combination is re-
~
flected on the Country Chart).' Note that each License Exception described at part 740 of the EAR supersedes General Prohibition One if all
' See part 738 of the EAR for selected controls that are not specified on the Country Chart.
Esport Admiinistration Regulations August 1996
General Prohibitions Part 736-page 3 (3) General Prohibition Three - Reexport and or as a precondition for the use of License Excep-export from abroad of the foreign-produced tion TSR at Q740.3(d) of the EAR, and direct product of U.S. technology and software (Foreign-Produced Direct Product Reexports).
(2) Such foreign-made direct products of the plant or component ere subject to national (i) Countryscope ofprohibition. You may not security controls as designated an the applicable export, reexport, or export from abroad items ECCN of the Commerce Control Ust at part 774 subject to the scope of this General Prohibition of the EAR.
nree to Cuba, North Korea, Libya, or a destina-tion in Country Group D:1 (See Supplement No.
(iii) License Exceptions. Each License Excep-I to part 740 of the EAR).
tion described at part 740 of the EAR supersedes this General Prohibition Three if all terms and (ii) Product scope offoreign made items sub-conditions of a given exception are met by the ject to prohibition. This General Prohibition 3 exporter or reexporter.
applies if an item meets either the Conditions defining the direct product of technology or the (4) General Prohibition Four(Denial Orden)
Conditions defining the direct product of a plant
- Engaging in actions prohibited by a denial j
in paragraph (bX3XiiXA) of this section:
order.
(A) Conditions defining direct product of (i) You may not take any action that is prohib-technology. Foreign-made items are subject to ited by a denial order issued under part 766 of the l
this General Prohibition 3 if they meet both of the EAR, Administrative Enforcement Proceedings.
following conditions:
These orders prohibit many actions in addition to direct exports by the person denied export privi-(1) They are the direct product of technol-leges, including some transfers within a single ogy or software that requires a written assurance country either in the United States or abroad by as a supporting document for a license or as a other persons. You are responsible for ensuring precondition for the use of License Exception that any of your transactions in which a person TSR at Q740.3(d) of the EAR, and who is denied export privileges is involved do not violate the terms of the order. He names of (2) They are subject to national security persons denied export privileges are published in controls as designated on the applicable ECCN of the Federal Register and are also included on the the Commerce Control List at part 774 of the Denied Persons List, which is referenced in Sup-EAR.
plement No. 2 to part 764 of the EAR, Enforce-ment. The terms of the standard denial order are (B) Conditions defining direct product of a set forth in Supplement No. I to part 764. You plant. Foreign-made items are also subject to this should note that some denial orders differ from General Prohibition 3 if they are the direct prod-the standard denial order. BXA may, on an ex-uct of a complete plant or any major component ceptional basis, authorize activity otherwise pro-of a plant if both of the following conditions are hibited by a denial order. See l764.3(aX3) of the met:
EAR.
(1) Such plant or component is the direct (ii) There are no License Exceptions described product of technology that requires a written in part 740 of the EAR that authorize conduct assurance as a supporting document for a license prohibited by this General Prohibition Four.
Esport Administration Regulations August 1996
l General Prohibitions Part 7%-page 4 (5) General Prohibition Five - Export or (i) Unlading andshipping in transit. You may i
reesport to prohibited end uses or end-users not export an item through or transit through a (End-Use End-User). You may not, without a country listed in (b)(8)(ii) of this section unless a license, knowingly export or reexport any item License Exception or license authorizes such an subject to the EAR to an end user of end-use that export directly to such a country of transit.
is prohibited by part 744 of the EAR.
(ii) Country scope. This General Prohibition
{
(6) General Prohibition Six - Export or Eight applies to Albania, Armenia, Azerbaijan, reexport to embargoed destinations Belarus, Bulgaria. Cambodia, Cuba, Estonia, (Embargo).
Georgia, Kazakhstan, Kyrgyzstan, Laos, Latvia, Lithuania, Mongolia, North Korea, Russia, (i) You may not, without a license or License Tajikistan, Turkmenistan, Ukraine, Uzbkeistan, i
Exception authorized under part 746, expon or Vietnam.
i reexpon any item subject to the EAR to a country l
that is embargoed by the United States or (9) General Prohibition Nine - Violation of otherwise made subject to controls as both are de-any order, terms, and conditions (Orders, scribed at part 746 of the EAR.
Terms, and Conditions). You may not violate terms or conditions of a license or of a License (ii)
License Exceptions to this General Exception issued under or made a part of the Prohibition Six are described at part 746 of the EAR, and you may not violate any order issued EAR on Embargoes and Other Special Controls; under or made a part of the EAR. There are no and unless a License Exception is authorized in License Exceptions to this General Prohibition pan 746 of the EAR, the License Exceptions at Nine in pan 740 of the EAR. Supplements Nos.
part 740 of the EAR are not available to I and 2 to this pan provide for certain General overcome this general prohibition.
Orders and Administrative Orders.
(7) General Prohibition Seven - Support of (10) General Prohibition Ten - Proceeding Proliferation ActMties (U.S.
Person with transactions with knowledge that a
Proliferation Activity). If you are a U.S. Person violation has occurred or is about to occur as that term is defined at Q744.6(c) of the EAR, (Knowledge Violation to Occur). You may not you may not engage in any activities prohibited sell, transfer, export, reexport, finance, order, by l744.6(a) or (b) of the EAR which prohibits buy, remove, conceal, store, use, loan, dispose of, the performance, without a license from BXA, of transfer, transport, forward, or otherwise service, certain financing, contracting, service, support, in whole or in part, any item subject to the EAR transportation, freight forwarding, or employment and exported or to be exported with knowledge that you know will assist in certain proliferation that a violation of the Expon Administration activities described funher at part 744 of the Regulations, the Expon Administration Act or EAR. There ait no License Exceptions to this any order, license, License Exception, or other General Prohibition Seven in part 740 of the EAR authorization issued thereunder has occurred, is unless specifically authorized in that part.
about to occur, or is intended to occur in connection with the item. Nor may you rely upon (8) General Prohibition Eight - In transit any license or License Exception after notice to shipments and items to be untaden from you of the suspension or revocation of that vessels or aircraft (Intransit).
license or exception. There are no License Exceptions to this General Prohibition Ten in part 740 of the EAR.
Export Administration Regulations August 1996
Liceses Esceptions Part 740-page 27 in their aircraft operations.
(1) The reexport is made in accordance with the conditions of an expon authorization from the government of the reexporting country; (3) Appliesbie comissodities. This paragraph (c) applies to the following commodities, subject to (2) The commodities being reexported are not the provisions in paragraph (cXI) and (c)(2) of controlled for nuclear nonproliferation, missile this section:
technology or crime control reasons; and Note to paragraph (e)(3) of this section:
(3) The reexpon is destined to either:
Fuel and related commodities for shipment to vessels or planes of U.S. or Canadian registry as (i) A country in Country Group B that is not described in this License Exception must be also included in Country Group D:2, D:3, or D:4; shipped under the short supply License Exception Cambodia; or Laos; and the commodity being SPR(see (754.2(h) of the EAR);
reexported is both controlled for national security reasons and not controlled for export to Country (i) Deck, engine, and steward department Group A:1; or stores, provisions, and supplies for both pon and voyage requirements; (ii) A country in Country Group D:1 only (National Security)(see Supplement No. I to part (ii) Medical and surgical supplies; 740), other than Cambodia or Laos, and the com-modity being reexported is controlled for national i
(iii) Food stores; security reasons.
(iv) Slop chest articles; (b) Ree.xports to andannong Country Groy A:1 andcooperating countries j
(v) Saloon stores or supplies; and Reexports may be made to and among Country (vi) Equipment and spare pans.
Group A:1 and cooperating countries, provided that eligible commodities are for use or consump-tion within a Country Group A:1 (see Supplement
$740.11 No I to pan 740) or cooperating country, or for reexport from such country in accordance with
- ADDITIONAL PERMISSIVE REEXPORTS other provisions of the EAR. All commodities (APR) except the following are eligible for reexport to j
and among Country Group A:1 and cooperating This License Exception allows the following countries:
reexports:
(1) Computers with a CTP greater than 10,000 (a) Reesportsfrom Country Group A:1 and MTOPS to Hong Kong and South Koren; cooperating countries (2) Commodities controlled for nuclear nonpro.
Reexports may be made from Country Group A:1 liferation reasons.
or from cooperating countries, provided that:
(c) Reexports to a destination to which direct shipment from the United States is authorized under an unused outstanding license may be made Esport Admiinistration Regulations August 1996
License Exceptions Part 740--page 28 under the terms of that license. Such reexports
(/) Reexports from a foreign destination to Can-shall be recorded in the same manner as exports ada th of any item if the item could be exported to are recorded, regardless of whether the license is Canada without a license.
partially or wholly used for reexport purposes.
(See part 762 of the EAR for recordkeeping re-(g) Reexports between Switzerland and Liechten-quirements.)
stein.
(d) Reexports of any item from Canada that, at (A) Shipments of foreign-made products that the time of reexport, may be exported directly incorporate U.S.-origin components may be ac-from the United States to the new country of companied by U.S.-origin controlled spare parts, destination under any License Exception.
provided that they do not exceed 10 percent of the value of the foreign-made product, subject to the (e) Reexports (return) to the United States of any restrictions in {734.4 of the EAR.
item. If the reexporting party requests written authorization because the government of the (l) Reexport to Sudan of items controlled by country from which the reexport will take place ECCNs 2A994,3A993,5A992, SA995,6A990, requires formal U.S. Government approval, such 6A994, 7A994, 8A992, 8 A994, 9A990, 9A992, authorization will generally be given.
and 9A994. In addition, items in these ECCNs are not counted as controlled U.S. content for purposes ofdetermining license requirements for U.S. parts, components, and materials incorpo-rated into foreign-made products.
Expert Administration Regulations August 1996
License Exceptions S:ppleme:t N:. I to Part 740--page 1 Country Group A
[A:1]
[A:2]
[A:3]
[A:4]
Missile Technology Australia Nuclear Suppliers Country Control Regime Group Group Argentina X
X X
Australia X
X X
X Austria' X
X X
Belgium X
X X
X Brazil X
Bulgaria X
Canada X
X X
X Czech Republic X
X Denmark X
X X
X Finland' X
X X
France X
X X
X Germany X
X X
X Greece X
X X
X Hong Kong' Hungary X
X X
leeland X
X Ireiend' X
X X
ttah X
X X
X Japan X
X X
X Korea, South' X
Luxembourg X
X X
X Netherlands X
X X
X New Zealand' X
X X
Norway X
X X
X Poland X
X Portugal X
X X
X Romania X
X Russia X
X Slovakia X
X South Africa X
X Spain X
X X
X Sweden' X
X X
Switzerland' X
X X
Turkey X
United Kingdom X
X X
X United States X
X X
X
' Cooperating Countries Expert Administration Regulations August 1996
NRC 240 iii E
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