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13 December 2007
[Federal Register: December 12, 2007 (Volume 72, Number 238)]
[Rules and Regulations]
[Page 70509-70513]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12de07-4]
[[Page 70509]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 740 and 772
[Docket No. 071114704-7749-01]
RIN 0694-AD72
Revisions to License Exceptions TMP and BAG: Expansion of
Eligible Items
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: This rule amends the Export Administration Regulations (EAR)
to expand the availability of License Exceptions Temporary Imports,
Exports, and Reexports (TMP) and Baggage (BAG) to allow for certain
temporary exports and reexports of technology by U.S. persons to U.S.
persons or their employees traveling or temporarily assigned abroad.
DATES: Effective Date: This rule is effective: December 12, 2007.
Although there is no formal comment period, public comments on this
regulation are welcome on a continuing basis.
ADDRESSES: You may submit comments, identified by RIN 0694-AD72, by any
of the following methods:
E-mail: publiccomments@bis.doc.gov. Include ``RIN 0694-AD72'' in
the subject line of the message.
Fax: (202) 482-3355. Please alert the Regulatory Policy Division,
by calling (202) 482-2440, if you are faxing comments.
Mail or Hand Delivery/Courier: Timothy Mooney, U.S. Department of
Commerce, Bureau of Industry and Security, Regulatory Policy Division,
14th St. & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230,
Attn: RIN 0694-AD72.
Send comments regarding the collection of information associated
with this rule, including suggestions for reducing the burden, to David
Rostker, Office of Management and Budget (OMB), by e-mail to
David_Rostker@omb.eop.gov, or by fax to (202) 395-7285; and to the U.S.
Department of Commerce, Bureau of Industry and Security, Regulatory
Policy Division, 14th St. & Pennsylvania Avenue, NW., Room 2705,
Washington, DC 20230. Comments on this collection of information should
be submitted separately from comments on the final rule (i.e. RIN 0694-
AD72)--all comments on the latter should be submitted by one of the
three methods outlined above.
FOR FURTHER INFORMATION CONTACT: Timothy Mooney, Office of Exporter
Services, Bureau of Industry and Security, Telephone: (202) 482-2440.
SUPPLEMENTARY INFORMATION:
Background
Under part 740 of the EAR, License Exception Temporary Imports,
Exports, and Reexports (TMP) (Sec. 740.9) and License Exception
Baggage (BAG) (Sec. 740.14) both contain tools of trade provisions
(Sec. 740.9(a)(2)(i) and Sec. 740.14(b)(4), respectively) which
authorize certain temporary exports and reexports for usual and
reasonable kinds and quantities of tools of trade for use in a lawful
enterprise or undertaking of the exporter. Previously, License
Exceptions TMP and BAG did not authorize temporary exports or reexports
of technology because the scope of these license exceptions was limited
to commodities and software.
This rule expands the availability of License Exceptions TMP and
BAG to allow for certain temporary exports and reexports of technology
by U.S. persons to U.S. persons or their employees traveling or
temporarily assigned abroad. This rule does not authorize any new
release of technology. Technology exported under License Exceptions TMP
or BAG may only be released to persons who may receive that same
technology pursuant to other provisions of the EAR. Exporters and
reexporters who wish to use the tools of trade provisions of the two
relevant license exceptions for the temporary export or reexport of
technology subject to the EAR may do so, subject to certain
restrictions specifically applicable to technology exports and
reexports. These restrictions provide safeguards against the
unauthorized risk of access to technology.
Amendments to the Export Administration Regulations
This rule makes the following revisions to the Export
Administration Regulations (EAR) to reflect changes to License
Exceptions TMP and BAG:
In part 740 (License Exceptions):
(1) This rule makes changes in Sec. 740.9 (Temporary Imports,
Exports, and Reexports (TMP)), to amend the ``tools of trade''
provisions in paragraph (a)(2)(i) to authorize the export or reexport
by U.S. persons of certain technology to U.S. persons or their
employees traveling or temporarily assigned abroad. This rule adds a
new paragraph (a)(2)(i)(C) to add a specific definition of U.S. person
applicable to paragraph (a)(2)(i).
In Sec. 740.9, this rule also adds a new paragraph (a)(3)(iv),
establishing restrictions to prevent unauthorized export or reexport of
technology. These restrictions include a restriction added to paragraph
(a)(3)(iv)(A) for exports or reexports to employees who are not U.S.
persons, as defined in (a)(2)(i)(C), to ensure that this license
exception will not be used to circumvent other license requirements
under the EAR such as the ``deemed export'' license requirements set
forth in Sec. 734.2(b)(2)(ii). Specifically, TMP may be available to
employees who are not U.S. persons, as defined in paragraph
(a)(2)(i)(C), for exports or reexports of technology under the tools of
trade provisions set forth in paragraph (a)(2)(i)(A) only to the extent
that such employees are authorized to receive the same technology in
accordance with the EAR (e.g., a license or license exception), or,
alternatively, do not require such authorization on account of the
technology's NLR status. As an additional safeguard, under paragraph
(a)(3)(iv)(A)(2), the U.S. person employer must demonstrate and
document for recordkeeping purposes the reason that the technology to
be authorized for export or reexport under the tools of trade
provisions of paragraph (a)(2)(i)(A) is needed by such employees in
their temporary business activities abroad on behalf of their U.S.
person employer.
This rule adds a new paragraph (a)(1)(i) to provide an additional
requirement and guidance for the return or disposal of technology
authorized under License Exception TMP. This paragraph (a)(1)(i)
clarifies that technology shipped or transmitted as temporary exports
or reexports under the provisions of paragraph (a)(2)(i)(A) that exists
in a format that could facilitate a subsequent release of the
technology must be returned or disposed of in accordance with paragraph
(a)(4) of License Exception TMP. This paragraph also provides an
illustrative list of examples of technology that exists in a format
that could facilitate a subsequent release of technology.
(2) This rule also revises Sec. 740.14 (Baggage (BAG)) to amend
the tools of trade provisions in paragraph (b)(4) (Tools of Trade) to
authorize the export or reexport of certain technology to U.S. persons
for use in the trade, occupation, employment, vocation, or hobby of the
traveler or members of the U.S. person's household, provided they are
also U.S. persons, who are traveling or moving. This rule adds a new
paragraph (b)(4)(i) to add a specific definition of U.S. person
applicable to paragraph (b)(4) of this section. In addition, this rule
adds a new paragraph (h) prohibiting the unauthorized export or
reexport of technology.
[[Page 70510]]
(3) In Sec. 772.1 (Definitions of Terms as Used in the Export
Administration Regulations), this rule revises paragraph (b) of the
definition of U.S. person to clarify that exporters should see Sec.
740.14 (License Exception BAG) for a definition of U.S. person that is
specific to that section.
(4) In Sec. 740.9, the reference to Note 2 in Category 5--Part 2
``Information Security'' of the Commerce Control List (CCL) (Supplement
No. 1 to Part 774 of the EAR) is removed. Note 2 in Category 5, Part 2
refers persons to License Exceptions TMP and BAG. Prior to the
publication of this rule, the last sentence of paragraph (a)(2)(i) of
License Exception TMP referred persons back to Note 2 in Category 5,
Part 2. License Exception BAG does not contain a reference to Note 2 of
Category 5, Part 2. To provide clarity, the reference to Note 2 in
Sec. 740.9 is eliminated with the publication of this rule.
In order to provide clearer guidance to the public regarding which
encryption items are authorized under License Exceptions TMP and BAG,
this rule also specifies certain restrictions applicable to the use of
both License Exceptions TMP and BAG for exports and reexports of
certain types of encryption technology. First, encryption technology
controlled under ECCN 5E002 is not authorized for export or reexport
under the amended ``tools of trade'' provisions of License Exception
TMP. Second, in License Exception BAG Sec. 740.14, the new U.S. person
``tools of trade'' provisions do not authorize the export or reexport
of ECCN 5E002 encryption technology to any destination listed in
Country Group E:1 of Supplement No. 1 to part 740. For the export or
reexport of 5E002 technology by companies, their subsidiaries and
employees, see License Exception Encryption Commodities and Software
(ENC) set forth in Sec. 740.17.
In License Exception TMP Sec. 740.9 paragraph (a)(2)(i), this rule
also removes the second to last sentence that stated, prior to the
publication of this rule, that items controlled under ECCN 5D992 are
permitted pursuant to this section, as this sentence is not needed to
clarify the scope of items available under License Exception TMP.
Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as extended by the Notice of August 15,
2007, 72 FR 46137 (August 16, 2007), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act.
Rulemaking Requirements
1. This final rule has been determined to be not significant for
purposes of E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with a collection of information, subject to the
requirements of the Paperwork Reduction Act, unless that collection of
information displays a currently valid Office of Management and Budget
Control Number. This rule contains a collection of information subject
to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This
collection has been approved by the Office of Management and Budget
under control number 0694-0088, ``Multi-Purpose Application,'' which
carries a burden hour estimate of 58 minutes for a manual or electronic
submission.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military and foreign affairs
function of the United States (5 U.S.C. 553(a)(1)). Further, no other
law requires that a notice of proposed rulemaking and an opportunity
for public comment be given for this final rule. Because a notice of
proposed rulemaking and an opportunity for public comment are not
required to be given for this rule under the Administrative Procedure
Act or by any other law, the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Therefore,
this regulation is issued in final form.
List of Subjects
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 772
Exports.
0
Accordingly, parts 740 and 772 of the Export Administration Regulations
(15 CFR parts 730-774) are amended as follows:
PART 740--[AMENDED]
0
1. The authority citation for 15 CFR part 740 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp.,
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 15, 2007, 72 FR 46137 (August 16, 2007).
0
2. Section 740.9 is amended by:
0
a. Revising paragraph (a)(1);
0
b. Revising paragraphs (a)(2) introductory text, (a)(2)(i) introductory
text, (a)(2)(i)(A) and adding new paragraph (a)(2)(i)(C);
0
c. Revising paragraphs (a)(3)(i)(A), (a)(3)(i)(B) introductory text,
(a)(3)(i)(B)(1), (a)(3)(i)(B)(2), (a)(3)(ii), (a)(3)(iii) and adding
new paragraph (a)(3)(iv);
0
d. Revising paragraph (a)(4); and
0
e. Revising paragraph (a)(5), to read as follows:
Sec. 740.9 Temporary imports, exports and reexports (TMP).
* * * * *
(a) * * * (1) Scope. You may export and reexport commodities and
software for temporary use abroad (including use in international
waters) subject to the conditions and restrictions described in
paragraphs (a)(2) through (a)(5) of this section. U.S. persons, as
defined in paragraph (a)(2)(i)(C), may export and reexport technology
for temporary use abroad under paragraph (a)(2)(i) of this section to
U.S. persons or their employees traveling or temporarily assigned
abroad (including use in international waters) subject to the
conditions and restrictions described in paragraphs (a)(2) through
(a)(5) of this section. Paragraph (a) does not authorize any new
release of technology. Persons receiving technology exported or
reexported under paragraph (a)(2)(i) must already be authorized to
receive the same technology in accordance with the EAR (e.g., through a
license or license exception), or, alternatively, not require such
authorization on account of the technology's NLR status. Technology
exports and reexports authorized under this paragraph (a) may be made
as actual shipments, transmissions, or releases. Exports and reexports
of encryption items controlled under ECCN 5E002 are not permitted
pursuant to this paragraph (a). Items shipped as temporary exports and
reexports under the provisions of this paragraph (a) must be returned
to the country from which they were exported or reexported as soon as
practicable but, except in circumstances described in this section, no
later than one year from the date of export or reexport. This
requirement does not apply if the items are consumed or destroyed in
the normal course of authorized temporary use abroad or an extension or
other disposition is permitted by the EAR or in writing by BIS.
[[Page 70511]]
(i) Additional requirement for return or disposal of technology.
Technology shipped or transmitted as a temporary export or reexport
under the provisions of this paragraph (a)(2)(i)(A) that exists in a
format that could facilitate a subsequent release of the technology
must be returned or disposed of in accordance with paragraph (a)(4) of
this section. Examples of technology that exists in a format that could
facilitate a subsequent release of technology include the following:
technology in a hard copy format (e.g. blue prints, manuals);
technology in an electronic format stored on an electronic device (e.g.
laptop, PDA); or technology stored on removable storage media and
devices (e.g. CD-ROMS, flash drives, video cassettes).
(ii) [RESERVED]
(2) Eligible items. The following items are eligible to be shipped
under this paragraph (a):
(i) Tools of trade. Usual and reasonable kinds and quantities of
tools of trade (commodities, software, and technology) for use in a
lawful enterprise or undertaking of the exporter. For the export or
reexport of commodities or software, the transaction must meet the
requirements of paragraph (a)(2)(i)(A) or paragraph (a)(2)(i)(B) of
this section. For the export or reexport by U.S. persons of technology
authorized under this paragraph, the transaction must meet the
requirements of paragraph (a)(2)(i)(A) of this section.
(A) Destinations other than Country Group E:2 or Sudan. Exports and
reexports of tools of trade for use by the exporter or employees of the
exporter may be made only to destinations other than Country Group E:2
or Sudan. The tools of trade must remain under the ``effective
control'' (see Sec. 772.1 of the EAR) of the exporter or the
exporter's employee. Eligible tools of trade may include, but are not
limited to, equipment and software as is necessary to commission or
service items, provided that the equipment or software is appropriate
for this purpose and that all items to be commissioned or serviced are
of foreign origin, or if subject to the EAR, have been lawfully
exported or reexported. For exports and reexports by U.S. persons to
U.S. persons or their employees traveling or temporarily assigned
abroad, eligible tools of trade may also include, but are not limited
to, technology as is necessary to commission or service items, provided
that all items to be commissioned or serviced either are of foreign
origin and not subject to the EAR, or, if subject to the EAR, have been
lawfully exported or reexported. Tools of trade may accompany the
individual departing from the United States or may be shipped
unaccompanied within one month before the individual's departure from
the United States, or at any time after departure.
* * * * *
(C) For purposes of this paragraph (a)(2)(i), U.S. person is
defined as follows: an individual who is a citizen of the United
States, an individual who is a lawful permanent resident as defined by
8 U.S.C. 1101(a)(2) or an individual who is a protected individual as
defined by 8 U.S.C. 1324b(a)(3). U.S. person also means any juridical
person organized under the laws of the United States, or any
jurisdiction within the United States (e.g., corporation, business
association, partnership, society, trust, or any other entity,
organization or group that is incorporated to do business in the United
States).
* * * * *
(3) * * *
(i) * * *
(A) No item may be exported or reexported under paragraph (a) of
this section to Country Group E:2 (see Supplement No. 1 to this part)
except as permitted by paragraph (a)(2)(viii) of this section (news
media). These destination restrictions apply to temporary exports to
and for use on any vessel, aircraft or territory under the ownership,
control, lease, or charter by any country in Country Group E:2, or any
national thereof;
(B) No item may be exported under this License Exception to Country
Group D:1 (see Supplement No. 1 to part 740) except:
(1) Commodities and software exported under paragraph (a)(2)(viii),
news media, of this section;
(2) Items exported under paragraph (a)(2)(i), tools of trade, of
this section;
(ii) Ineligible items. (A) Items that will be used outside of
Country Group A:1 (see Supplement No. 1 to part 740), Iceland, or New
Zealand, either directly or indirectly, in any sensitive nuclear
activity as described in Sec. 744.2 of the EAR may not be exported or
reexported to any destination under the temporary exports and reexports
provisions of this License Exception.
(B) Exports and reexports of encryption items controlled under ECCN
5E002 are not permitted pursuant to this paragraph (a).
(iii) Use or disposition. No item may be exported or reexported
under this paragraph (a) if:
(A) An order to acquire the item has been received before shipment;
(B) The exporter has prior knowledge that the item will stay abroad
beyond the terms of this License Exception; or
(C) The item is for lease or rental abroad.
(iv) Restrictions specific to the export or reexport of technology.
The authorization for the export or reexport of technology under the
tools of trade provisions of paragraph (a)(2)(i)(A) is subject to the
restrictions in this paragraph (a)(3)(iv), as described in paragraphs
(a)(3)(iv)(A), (a)(3)(iv)(B) and (a)(3)(iv)(C).
(A) The authorization for the export or reexport of technology
under the tools of trade provisions of paragraph (a)(2)(i)(A) of this
section may be used only by U.S. persons, as defined in (a)(2)(i)(C),
or their employees traveling or on temporary assignment abroad. The
restrictions under this paragraph (a)(3)(iv)(A) include the following
three additional restrictions:
(1) Employees who are not U.S. persons, as defined in (a)(2)(i)(C),
may be authorized to receive exports or reexports of the technology
eligible for export or reexport under the tools of trade provisions of
paragraph (a)(2)(i)(A), only if such employees are already eligible to
receive such technology through a current license or a license
exception or on account of NLR status;
(2) A U.S. employer of individuals who are not U.S. persons, as
defined in (a)(2)(i)(C), must demonstrate and document for
recordkeeping purposes the reason that the technology to be authorized
for export or reexport under the tools of trade provisions of paragraph
(a)(2)(i)(A) is needed by such employees in their temporary business
activities abroad on behalf of the U.S. person employer, prior to using
the tools of trade provisions of paragraph (a)(2)(i)(A) of this
section. This documentation must be created and maintained in
accordance with the recordkeeping requirements of part 762 of the EAR;
and
(3) The U.S. person must retain supervision over the technology
that has been authorized for export or reexport under these or other
provisions.
(B) The exporting or reexporting party and the recipient of the
technology must take security precautions to protect against
unauthorized release of the technology while the technology is being
shipped or transmitted and used overseas. Examples of security
precautions to help prevent unauthorized access include the following:
(1) Use of secure connections, such as Virtual Private Network
connections, when accessing IT networks for e-mail
[[Page 70512]]
and other business activities that involve the transmission and use of
the technology authorized under this license exception;
(2) Use of password systems on electronic devices that will store
the technology authorized under this license exception; and
(3) Use of personal firewalls on electronic devices that will store
the technology authorized under this license exception.
(C) Technology authorized under these provisions may not be used
for foreign production purposes or for technical assistance unless
authorized by BIS.
(4) Return or disposal of items. All items exported or reexported
under these provisions must, if not consumed or destroyed in the normal
course of authorized temporary use abroad, be returned as soon as
practicable but no later than one year after the date of export or
reexport, to the United States or other country from which the items
were so exported or reexported, or shall be disposed of or retained in
one of the following ways:
(i) Permanent export or reexport. If the exporter or the reexporter
wishes to sell or otherwise dispose of the items abroad, except as
permitted by this or other applicable provision of the EAR, the
exporter must request authorization by submitting a license application
to BIS at the address listed in part 748 of the EAR. (See part 748 of
the EAR for more information on license applications.) The request
should comply with all applicable provisions of the EAR covering export
directly from the United States to the proposed destination. The
request must also be supported by any documents that would be required
in support of an application for export license for shipment of the
same items directly from the United States to the proposed destination.
BIS will advise the exporter of its decision.
(ii) Use of a license. An outstanding license may also be used to
dispose of items covered by the provisions of this paragraph (a),
provided that the outstanding license authorizes direct shipment of the
same items to the same new ultimate consignee in the new country of
destination.
(iii) Authorization to retain item abroad beyond one year. If the
exporter wishes to retain an item abroad beyond the 12 months
authorized by paragraph (a) of this section, the exporter must request
authorization by submitting Form BIS-748P, Multipurpose Application, 90
days prior to the expiration of the 12 month period. The request must
be sent to BIS at the address listed in part 748 of the EAR and should
include the name and address of the exporter, the date the items were
exported, a brief product description, and the justification for the
extension. If BIS approves the extension request, the exporter will
receive authorization for a one-time extension not to exceed six
months. BIS normally will not allow an extension for items that have
been abroad more than 12 months, nor will a second six month extension
be authorized. Any request for retaining the items abroad for a period
exceeding 18 months must be made in accordance with the requirements of
paragraph (a)(4)(i) of this section.
(5) Reexports. (i) Commodities and software lawfully exported from
the United States may be reexported to a new country or countries of
destination other than Sudan or Country Group E:2 under provisions of
this paragraph (a) provided its terms and conditions are met and the
commodities and software are returned to the country from which the
reexport occurred.
(ii) Technology legally exported from the United States may be
reexported by a U.S. person to U.S. persons and their employees in a
new country or countries of destination other than Sudan or Country
Group E:2 under provisions of this paragraph (a)(2)(i)(A) provided its
terms and conditions are met and the technology is returned to the
country from which the reexport occurred.
* * * * *
0
3. Section 740.14 is amended:
0
a. By revising paragraphs (a) and (b) introductory text ;
0
b. By revising paragraph (b)(4);
0
c. By revising the introductory text of paragraph (c); and
0
d. By adding new paragraph (h), to read as follows:
Sec. 740.14 Baggage (BAG).
(a) Scope. This License Exception authorizes individuals leaving
the United States either temporarily (i.e., traveling) or longer-term
(i.e., moving) and crew members of exporting or reexporting carriers to
take to any destination, as personal baggage, the classes of
commodities, software and technology described in this section.
(b) Eligibility. Individuals leaving the United States may export
or reexport any of the following commodities or software for personal
use of the individuals or members of their immediate families traveling
with them to any destination or series of destinations. Individuals
leaving the United States who are U.S. persons, as defined in paragraph
(b)(4)(i), may export or reexport technology as a tool of trade under
paragraph (b)(4) for their personal use or for the personal use of
members of their immediate families who are traveling or moving with
them, provided they are also U.S. persons, as defined in paragraph
(b)(4)(i), to any destination or series of destinations. Technology
exports and reexports authorized under paragraph (b)(4) of this section
may be made as actual shipments, transmissions, or releases.
Individuals leaving the United States temporarily (i.e., traveling)
must bring back items exported and reexported under this License
Exception unless they consume the items abroad or are otherwise
authorized to dispose of them under the EAR. Crew members may export or
reexport only commodities and software described in paragraphs (b)(1)
and (b)(2) of this section to any destination.
* * * * *
(4) Tools of trade. Usual and reasonable kinds and quantities of
tools, instruments, or equipment and their containers and also
technology for use in the trade, occupation, employment, vocation, or
hobby of the traveler or members of the household who are traveling or
moving. For special provisions regarding encryption commodities and
software subject to EI controls, see paragraph (f) of this section. For
a special provision that specifies restrictions regarding the export or
reexport of technology under this paragraph, see paragraph (h).
(i) For purposes of this paragraph (b), U.S. person is defined as
follows: an individual who is a citizen of the United States, an
individual who is a lawful permanent resident as defined by 8 U.S.C.
1101(a)(2) or an individual who is a protected individual as defined by
8 U.S.C. 1324b(a)(3).
(ii) [RESERVED]
(c) Limits on eligibility. The export of any item is limited or
prohibited, if the kind or quantity is in excess of the limits
described in this section. In addition, the items must be:
* * * * *
(h) Special provision: restrictions for Export or Reexport of
Technology. This authorization for the export or reexport of technology
under the tools of trade provisions of paragraph (b)(4) of this section
may be used only if:
(1) The technology is to be used overseas solely by individuals or
members of their immediate families traveling with them provided they
are U.S. persons as defined in paragraph (b)(4)(i).
(2) The exporting or reexporting party and the recipient take
adequate security precautions to protect against
[[Page 70513]]
unauthorized access to the technology while the technology is being
transmitted and used overseas. Examples of security precautions to help
prevent unauthorized access include the following:
(i) Use of secure connections, such as Virtual Private Network
connections when accessing IT networks for e-mail and other business
activities that involve the transmission and use of the technology
authorized under this license exception;
(ii) Use of password systems on electronic devices that will store
the technology authorized under this license exception; and
(iii) Use of personal firewalls on electronic devices that will
store the technology authorized under this license exception.
(3) The technology authorized under these provisions may not be
used for foreign production purposes or for technical assistance unless
authorized by BIS;
(4) Any encryption item controlled under ECCN 5E002 is not exported
or reexported to any destination listed in Country Group E:1 of
Supplement No. 1 of this part.
PART 772--[AMENDED]
0
4. The authority citation for 15 CFR part 772 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
3, 2006, 71 FR 44551 (August 7, 2006); Notice of August 15, 2007, 72
FR 46137 (August 16, 2007).
0
5. Section 772.1 is amended by revising paragraph (b) in the definition
of ``U.S. person'', as set forth below:
Sec. 772.1 Definitions of Terms as used in the Export Administration
Regulations (EAR).
* * * * *
``U.S. person''.
* * * * *
(b) See also Sec. Sec. 740.9, 740.14 and parts 746 and 760 of the
EAR for definitions of ``U.S. person'' that are specific to those
parts.
* * * * *
Dated: December 7, 2007.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. E7-24077 Filed 12-11-07; 8:45 am]
BILLING CODE 3510-33-P