15 C.F.R. Supplement No. 2 to Part 748—Unique Application and Submission Requirements
Title 15 - Commerce and Foreign Trade
In addition to the instructions contained in Supplement No. 1 to part 748, you must also ensure that the additional requirements for certain items or types of transactions described in this supplement are addressed in your license application. All other blocks not specifically identified in this supplement must be completed in accordance with the instructions contained in Supplement No. 1 to part 748. The term “Block” used in this supplement relates to Form BIS-748P, unless otherwise noted. (a) Chemicals, medicinals, and pharmaceuticals. If you are submitting a license application for the export or reexport of chemicals, medicinals, and/or pharmaceuticals, the following information must be provided in Block 22. (1) Facts relating to the grade, form, concentration, mixture(s), or ingredients as may be necessary to identify the item accurately, and; (2) The Chemical Abstract Service Registry (C.A.S.) numbers, if they exist, must be identified. (b) Communications intercepting devices. If you are required to submit a license application under §742.13 of this part, you must enter the words “Communications Intercepting Device(s)” in Block 9. The item you are requesting to export or reexport must be specified by name in Block 22(j). (c) Computers, telecommunications, information security items, and related equipment. If your license application includes items controlled by both Category 4 and Category 5, your license application must be submitted under Category 5 of the Commerce Control List (§774.1 of the EAR)—see Category 5 Part 1 Notes 1 and 2 and Part 2 Note 1. License applications including computers controlled by Category 4 must identify an “Adjusted Peak Performance” (“APP”) in Block 22(b). If the principal function is telecommunications, an APP is not required. Computers, related equipment, or software performing telecommunication or local area network functions will be evaluated against the telecommunications performance characteristics of Category 5 Part 1, while information security commodities, software and technology will be evaluated against the information security performance characteristics of Category 5 Part 2. If your license application involves items controlled by both Category 4 and Category 5, your license application must be submitted under Category 5—see Category 5 Part 1 Notes 1 and 2 and Part 2 Note 1. License applications involving computers controlled by Category 4 must identify an Adjusted Peak Performance (APP) in Block 22(b). If the principal function is telecommunications, an APP is not required. Computers, related equipment, or software performing telecommunication or local area network functions will be evaluated against the telecommunications performance characteristics of Category 5 Part 1, while information security commodities, software and technology will be evaluated against the information security performance characteristics of Category 5 Part 2. (1) Requirements for license applications that include computers. If you are submitting a license application to export or reexport computers or equipment containing computers to destinations in Country Group D:1 (See Supplement No. 1 to part 740 of the EAR), or to upgrade existing computer installations in those countries, you must also include technical specifications and product brochures to corroborate the data supplied in your license application, in addition to the APP in Block 22(b). (2) Security Safeguard Plan requirement. The United States requires security safeguards for exports, reexports, and in-country transfers of High Performance Computers (HPCs) to ensure that they are used for peaceful purposes. If you are submitting a license application for an export, reexport, or in-country transfer of a high performance computer to or within a destination in Computer Tier 3 (see §740.7(c)(1) of the EAR) or to Cuba, Iran, Libya, North Korea, Sudan, or Syria you must include with your license application a security safeguard plan signed by the end-user, who may also be the ultimate consignee. This requirement also applies to exports, reexports, and in-country transfers of components or electronic assemblies to upgrade existing “computer” installations in those countries. A sample security safeguard plan is posted on BIS's Web page at http://www.bis.doc.gov/hpcs/SecuritySafeguardPlans.php. (d) Gift parcels; consolidated in a single shipment. If you are submitting a license application to export multiple gift parcels for delivery to individuals residing in a foreign country, you must include the following information in your license application. Note: Each gift parcel must meet the terms and conditions described for gift parcels in License Exception GFT (see §740.12(a) of the EAR). (1) In Block 16, enter the word “None”; (2) In Block 18, enter the word “Various” instead of the name and address of a single ultimate consignee; (3) In Block 21, enter the phrase “For personal use by recipients”. (4) In Block 22(e), indicate a reasonable estimate of the number of parcels to be shipped during the validity of the license; (5) In Block 22(j), enter the phrase “Gift Parcels”; (6) In Block 23, indicate a reasonable value approximation proportionate to the quantity of gift parcels identified in Block 22(e); and (e) Intransit through the United States. If you are submitting a license application for items moving intransit through the United States that do not qualify for the intransit provisions of License Exception TMP (see §740.9(b)(1) of the EAR), you must provide the following information with your license application: (1) In Block 9, enter the phrase “Intransit Shipment”; (2) In Block 24, enter the name and address of the foreign consignor who shipped the items to the United States and state the origin of the shipment; (3) Any available evidence showing the approval or acquiescence of the exporting country (or the country of which the exporter is a resident) for shipments to the proposed ultimate destination. Such evidence may be in the form of a Transit Authorization Certificate; and (4) Any support documentation required by §748.9 of this part for the country of ultimate destination. (f) Intransit outside of the United States. If you are submitting a license application based on General Prohibition No. 8 stated in §734.2(b)(8) of the EAR and identification of the intermediate consignee in the country of unlading or transit is unknown at the time the license application is submitted, the country of unlading or transit must be shown in Block 17. (g) Nuclear Nonproliferation items and end-uses—(1) Statement requirement. If a license is required to export or reexport items described in §742.3 of the EAR, or any other item (except those controlled for short supply reasons) where the item is intended for a nuclear end-use, prior to submitting a license application, you must obtain a signed written statement from the end-user certifying the following: (i) The items to be exported or replicas thereof (“replicas” refers to items produced abroad based on physical examination of the item originally exported, matching it in all critical design and performance parameters), will not be used in any of the activities described in §744.2(a) of the EAR; and (ii) Written authorization will be obtained from the BIS prior to reexporting the items, unless they are destined to Canada or would be eligible for export from the United States to the new country of destination under NLR based on Country Chart NP Column 1. (2) License application requirements. Along with the required certification, you must include the following information in your license application: (i) In Block 7, place an (X) in the box titled “Nuclear Certification”; (ii) In Block 9, enter the phrase “NUCLEAR CONTROLS”; (iii) In Block 21, provide, if known, the specific geographic locations of any installations, establishments, or sites at which the items will be used; (iv) In Block 22(j), if applicable, include a description of any specific features of design or specific modifications that make the item capable of nuclear explosive activities, or of safeguarded or unsafeguarded nuclear activities as described in §744.2(a)(3) of the EAR; and (v) In Block 24, if your license application is being submitted because you know that your transaction involves a nuclear end-use described in §744.2 of the EAR, you must fully explain the basis for your knowledge that the items are intended for the purpose(s) described §744.2 of the EAR. Indicate, if possible, the specific end-use(s) the items will have in designing, developing, fabricating, or testing nuclear weapons or nuclear explosive devices or in designing, constructing, fabricating, or operating the facilities described in §744.2(a)(3) of the EAR. (h) Numerical control devices, motion control boards, numerically controlled machine tools, dimensional inspection machines, direct numerical control systems, specially designed assemblies and specially designed software. (1) If you are submitting a license application to export, reexport, or request BIS to classify numerical control devices, motion control boards, numerically controlled machine tools, dimensional inspection machines, and specially designed software you must include the following information in your license application: (i) For numerical control devices and motion control boards: (A) Make and model number of the control unit; (B) Description and internal configuration of numerical control device. If the device is a computer with motion control board(s), then include the make and model number of the computer; (C) Description of the manner in which a computer will be connected to the CNC unit for on-line processing of CAD data. Specify the make and model of the computer; (D) Number of axes the control unit is capable of simultaneously controlling in a coordinated contouring mode, and type of interpolation (linear, circular, and other); (E) Minimum programmable increment; (F) A description and an itemized list of all software/firmware to be supplied with the control device or motion control board, including software/firmware for axis interpolation function and for any programmable control unit or device to be supplied with the control unit; (G) Description of capabilities related to “real time processing” and receiving computer aided-design; (H) A description of capability to accept additional boards or software that would permit an upgrade of the electronic device or motion control board above the control levels specified in ECCN 2B001; and (I) Specify if the electronic device has been downgraded, and if so can it be upgraded in future. (ii) For numerically controlled machine tools and dimensional inspection machines: (A) Name and model number of machine tool or dimensional inspection machine; (B) Type of equipment, e.g., horizontal boring machine, machining center, dimensional inspection machine, turning center, water jet, etc.; (C) Description of the linear and rotary axes capable of being simultaneously controlled in a coordinated contouring mode, regardless of the fact that the coordinated movement of the machine axis may be limited by the numerical control unit supplied by the machine tool; (D) Maximum workpiece diameter for cylindrical grinding machines; (E) Motion (camming) of the spindle axis measured in the axial direction in one revolution of the spindle, and a description of the method of measurement for turning machine tools only; (F) Motion (run out) of the spindle axis measured in the radial direction in one revolution of the spindle, and a description of the method of measurement; (G) Overall positioning accuracy in each axis, and a description of the method for measurement; and (H) Slide motion test results. (i) Parts, components, and materials incorporated abroad into foreign-made products. BIS will consider license applications to export or reexport to multiple consignees or multiple countries when an application is required for foreign produced direct product containing parts and components subject to the EAR in §732.4(b) of the EAR and to General Prohibition Two stated in §734.2(b)(2) of the EAR. Such requests will not be approved for countries listed in Country Group E:2 (See Supplement No. 1 to part 740 of the EAR), and may be approved only in limited circumstances for countries listed in Country Group D:1. (1) License applications for the export of parts and components. If you are submitting a license application for the export of parts, components, or materials to be incorporated abroad into products that will then be sent to designated third countries, you must enter in Block 21, a description of end-use including a general description of the commodities to be manufactured, their typical end-use, and the countries where those commodities will be marketed. The countries may be listed specifically or may be identified by Country Groups, geographic areas, etc. (2) License applications for the reexport of incorporated parts and components. If you are submitting a license application for the reexport of parts, components, or materials incorporated abroad into products that will be sent to designated third countries you must include the following information in your license application: (i) In Block 9, enter the phrase “Parts and Components”; (ii) In Block 18, enter the name, street address, city and country of the foreign party who will be receiving the foreign-made product. If you are requesting approval for multiple countries or consignees enter “Various” in Block 18, and list the specific countries, Country Groups, or geographic areas in Block 24; (iii) In Block 20, enter the name, street address, city, and country of the foreign party who will be exporting the foreign-made product incorporating U.S. origin parts, components or materials; (iv) In Block 21, describe the activity of the ultimate consignee identified in Block 18 and the end-use of the foreign-made product. Indicate the final configuration if the product is intended to be incorporated in a larger system. If the end-use is unknown, state “unknown” and describe the general activities of the end-user; (v) In Block 22(e), specify the quantity for each foreign-made product. If this information is unknown, enter “Unknown” in Block 22(e); (vi) In Block 22(h), enter the digit “0” for each foreign-made product; (vii) In Block 22(j), describe the foreign-made product that will be exported, specifying type and model or part number. Attach brochures or specifications, if available. Show as part of the description the unit value, in U.S. dollars, of the foreign-made product (if more than one foreign-made product is listed on the license application, specify the unit value for each type/model/part number). Also include a description of the U.S. content (including the applicable Export Control Classification Number(s)) and its value in U.S. dollars. If more than one foreign-made product is identified on the license application, describe the U.S. content and specify the U.S. content value for each foreign-made product. Also, provide sufficient supporting information to explain the basis for the stated values. To the extent possible, explain how much of the value of the foreign-made product represents foreign origin parts, components, or materials, as opposed to labor, overhead, etc. When the U.S. content varies and cannot be specified in advance, provide a range of percentage and value that would indicate the minimum and maximum U.S. content; (viii) Include separately in Block 22(j) a description of any U.S. origin spare parts to be reexported with the foreign-made product, if they exceed the amount allowed by §740.10 of the EAR. Enter the quantity, if appropriate, in Block 22(e). Enter the ECCN for the spare parts in Block 22(a) and enter the value of the spare parts in Block 22(h); (ix) In Block 23, enter the digit “0”; (x) If the foreign-made product is the direct product of U.S. origin technology that was exported or reexported subject to written assurance, a request for waiver of that assurance, if necessary, may be made in Block 24. If U.S. origin technology will accompany a shipment to a country listed in Country Group D:1 or E:2 (see Supplement No. 1 to part 740 of the EAR) describe in Block 24 the type of technology and how it will be used. (j) Ship stores, plane stores, supplies, and equipment—(1) Vessels under construction. If you are submitting a license application for the export or reexport of items, including ship stores, supplies, and equipment, to a vessel under construction you must include the following information in your license application: (i) In Block 18, enter the name, street address, city, and country of the shipyard where vessel is being constructed; (ii) In Block 22(j), state the length of the vessel for a vessel under 12 m (40 ft) in length. For a vessel 12 m (40 ft) in length or over, provide the following information (if this information is unknown, enter “Unknown” in this Block): (A) Hull number and name of vessel; (B) Type of vessel; (C) Name and business address of prospective owner, and the prospective owner's nationality; and (D) Country of registry or intended country of registry. (2) Aircraft under construction. If you are submitting a license application for the export or reexport of items, including plane stores, supplies, and equipment, to an aircraft under construction you must include the following information in your license application: (i) In Block 18, enter the name and address of the plant where the aircraft is being constructed; (ii) In Block 22(j), enter the following information (if this information is unknown, enter “Unknown” in this Block): (A) Type of aircraft and model number; (B) Name and business address of prospective owner and his nationality; and (C) Country of registry or intended country of registry. (3) Operating vessels and aircraft. If you are submitting a license application for the export or reexport of items, including ship or plane stores, supplies, and equipment to an operating vessel or aircraft, whether in operation or being repaired, you must include the following information in your license application: (i) In Block 18, enter the name of the owner, the name of the vessel, if applicable, and port or point where the items will be taken aboard; (ii) In Block 18, enter the following statement if, at the time of filing the license application, it is uncertain where the vessel or aircraft will take on the items, but it is known that the items will not be shipped to a country listed in Country Group D:1 or E:2 (see Supplement No. 1 to part 740 of the EAR): Uncertain; however, shipment(s) will not be made to Country Groups D:1 or E:2. (iii) Provide information as described in paragraph (j)(1)(ii) of this supplement for vessels or information contained in paragraph (j)(2)(ii) of this supplement for aircraft. (k) Regional stability controlled items. If you are submitting a license application for the export or reexport of items controlled for regional stability reasons and subject to licensing under RS Column 1 on the Country Chart, your license application must be accompanied by full technical specifications. (l) Reexports. If you know that an item that requires a license to be exported from the United States to a certain foreign destination will be reexported to a third destination also requiring approval, such a request must be included on the license application. The license application must specify the country to which the reexport will be made in Block 24. If the export does not require a license but the reexport does, you may apply for a license for the reexport, or you may export without a license and notify the consignee of the requirement to seek a license to reexport. (m) Robots. If you are submitting a license application for the export or reexport of items controlled by ECCNs 2B007 or 2D001 (including robots, robot controllers, end-effectors, or related software) the following information must be provided in Block 24: (1) Specify if the robot is equipped with a vision system and its make, type, and model number; (2) Specify if the robot is specially designed to comply with national safety standards for explosive munitions environments; (3) Specify if the robot is specially designed for outdoor applications and if it meets military specifications for those applications; (4) Specify if the robot is specially designed for operating in an electro-magnetic pulse (EMP) environment; (5) Specify if the robot is specially designed or rated as radiation-hardened beyond that necessary to withstand normal industrial (i.e., non-nuclear industry) ionizing radiation, and its rating in grays (Silicon); (6) Describe the robot's capability of using sensors, image processing or scene analysis to generate or to modify robot program instructions or data; (7) Describe the manner in which the robot may be used in nuclear industry/manufacturing; and (8) Specify if the robot controllers, end-effectors, or software are specially designed for robots controlled by ECCN 2B007, and why. (n) Short Supply controlled items. If you are submitting a license application for the export of items controlled for short supply reasons, you must consult part 754 of the EAR for instructions on preparing your license application. (o) Technology—(1) License application instructions. If you are submitting a license application for the export or reexport of technology you must check the box labeled “Letter of Explanation” in Block 6, enter the word “Technology” in Block 9, leave Blocks 22(e) and (i) blank, and include a general statement that specifies the technology (e.g., blueprints, manuals, etc.) in Block 22(j). (2) Letter of explanation. Each license application to export or reexport technology must be supported by a comprehensive letter of explanation. This letter must describe all the facts for a complete disclosure of the transaction including, if applicable, the following information: (i) The identities of all parties to the transaction; (ii) The exact project location where the technology will be used; (iii) The type of technology to be exported or reexported; (iv) The form in which the export or reexport will be made; (v) The uses for which the data will be employed; (vi) An explanation of the process, product, size, and output capacity of all items to be produced with the technology, if applicable, or other description that delineates, defines, and limits the data to be transmitted (the “technical scope”); and (vii) The availability abroad of comparable foreign technology. (3) Special provisions—(i) Technology controlled for national security reasons. If you are submitting a license application to export technology controlled for national security reasons to a country not listed in Country Group D:1 or E:2 (see Supplement No. 1 to part 740 of the EAR), upon request, you must provide BIS a copy of the written letter from the ultimate consignee assuring that, unless prior authorization is obtained from BIS, the consignee will not knowingly reexport the technology to any destination, or export the direct product of the technology, directly or indirectly, to a country listed in Country Group D:1 or E:2 (see Supplement No. 2 to part 740 of the EAR). If you are unable to obtain this letter of assurance from your consignee, you must state in your license application why the assurances could not be obtained. (ii) Maritime nuclear propulsion plants and related items. If you are submitting a license application to export or reexport technology relating to maritime nuclear propulsion plants and related items including maritime (civil) nuclear propulsion plants, their land prototypes, and special facilities for their construction, support, or maintenance, including any machinery, device, component, or equipment specifically developed or designed for use in such plants or facilities you must include the following information in your license application: (A) A description of the foreign project for which the technology will be furnished; (B) A description of the scope of the proposed services to be offered by the applicant, his consultant(s), and his subcontractor(s), including all the design data that will be disclosed; (C) The names, addresses and titles of all personnel of the applicant, the applicant's consultant(s) and subcontractor(s) who will discuss or disclose the technology or be involved in the design or development of the technology; (D) The beginning and termination dates of the period of time during which the technology will be discussed or disclosed and a proposed time schedule of the reports the applicant will submit to BIS, detailing the technology discussed or disclosed during the period of the license; (E) The following certification: I (We) certify that if this license application is approved, I (we) and any consultants, subcontractors, or other persons employed or retained by us in connection with the project licensed will not discuss with or disclose to others, directly or indirectly, any technology relating to U.S. naval nuclear propulsion plants. I (We) further certify that I (we) will furnish to the Bureau of Industry and Security all reports and information it may require concerning specific transmittals or disclosures of technology under any license granted as a result of this license application. (F) A statement of the steps that you will take to assure that personnel of the applicant, the applicant's consultant(s) and subcontractor(s) will not discuss or disclose to others technology relating to U.S. naval nuclear propulsion plants; and (G) A written statement of assurance from the foreign importer as described in paragraph (o)(3)(i) of this supplement. (p) Temporary exports or reexports. If you are submitting a license application for the temporary export or reexport of an item (not eligible for the temporary exports and reexports provisions of License Exception TMP (see §740.9(a) of the EAR)) you must include the following certification in Block 24: The items described on this license application are to be temporarily exported (or reexported) for (state the purpose e.g., demonstration, testing, exhibition, etc.), used solely for the purpose authorized, and returned to the United States (or originating country) as soon as the temporary purpose has ended, but in no case later than one year of the date of export (or reexport), unless other disposition has been authorized in writing by the Bureau of Industry and Security. (q) Chemicals controlled for CW reasons under ECCN 1C350. In addition to any supporting documentation required by part 748, you must also obtain from your consignee an End-Use Certificate for the export of chemicals controlled for CW reasons by ECCN 1C350 to non-States Parties (destinations not listed in Supplement No. 2 to part 745 of the EAR). See §745.2 of the EAR. In addition to the End-Use Certificate, you may still be required to obtain a Statement by Ultimate Consignee and Purchaser (Form BIS–711P) as support documentation. Consult §§748.9 and 748.11 of the EAR. (r) Encryption review requests. Enter, in Block 9 (Special Purpose) of the BIS-748P, “License Exception ENC” if you are submitting an encryption review request for License Exception ENC (§740.17 of the EAR) or “mass market encryption” if you are submitting an encryption review request under the mass market encryption provisions (§742.15(b)(2) of the EAR). If you seek an encryption review for another reason, enter “encryption—other”. (s) Foreign National Review Request—(1) BIS–748P “Multipurpose Application” form. If you are submitting a Foreign National Review (FNR) request for the deemed export of technology or source code, you must include the following information on the BIS–748P “Multipurpose Application” form: (i) In Block 1 through 3, insert name, telephone, and facsimile of the person that is most knowledgeable about the foreign national; (ii) In Block 4 (Date of Application), enter the date; (iii) In Block 5 (Type of Application), place an “X” in the box marked “Other”; (iv) In Block 6 (Documents Submitted with Application), place an “X” in “Other” to signify that you are submitting the Foreign National Review Support Statement(s) with the BIS–748P, and place an “X” in “BIS–748P–B” if you are submitting this FNR for multiple foreign nationals; (v) In Block 9 (Special Purpose), insert the phrase “Foreign National Review (FNR)”; (vi) In Block 14 (Applicant), insert the name of the applicant; (vii) In Block 18 (Ultimate Consignee), insert the name and address of the Foreign National; (viii) In Block 21 (Specific End-Use), insert any information which may be of interest regarding the export of the technology or source code; (ix) In Block 24 (Additional Information), insert contact email information; (x) In Block 25 (Signature) ________________________________ , sign the BIS–748P, and insert the name and title of the signer; and (xi) All other Blocks on the application may be left blank. (2) Multiple Foreign Nationals. If you are submitting a Foreign National Review Request for more than one individual, you may add other foreign nationals by completing and attaching form BIS–748P–B “End-User Appendix.” (t) Foreign National Review Support Statement. To request review of your FNR, you must submit to BIS a FNR support statement as set forth below on company letterhead, along with Form BIS–748P (Multipurpose Application), or its electronic equivalent. For FNRs that include multiple foreign nationals, an FNR support statement must be submitted for each foreign national. (1) Case number (Z number): Zxxxxxx; (2) Name, and all other names ever used; (3) Date of birth: dd/mm/yyyy; (4) Place of birth: city, state/province, and country; (5) U.S. Address: street address, city, state, zip; (6) Overseas Address: street address, city, province, country; (7) Visa type (with expiration date and place issued, if available): type, dd/mm/yyyy, city, country; (8) I–94 No. xxxxxxx, dd/mm/yyyy; (9) Passport and Country of Issue: xxxxxxxx, country; (10) U.S. Education (schools, degrees, and dates received) (if any): degree, subject, university, city, state, country, month/year-month/year; (11) Foreign Education: degree, subject, university, city, state, country, month/year-month/year; (12) Employer (applicant) and address: company, street address, city, state, zip; (13) Detailed explanation of position requirements and individual's qualifications related to the position; and (14) Prior Employment Record, (including overseas employment) addresses and dates; explain any periods of unemployment. (u) Aircraft and vessels on temporary sojourn. If the application is for an aircraft or a vessel traveling on a temporary sojourn, state the value of the aircraft or vessel as $0 in box 22(g) (unit price) and 22(h) (total price). In box 23 (Total Application Dollar Value), insert the total value of items other than the aircraft or vessel that are included in the same application. If the application is only for the aircraft or vessel on temporary sojourn, insert $0. (v) In-country transfers. To request an in-country transfer, you must specify “in-country transfer” in Block 9 (Special Purpose) and mark “Reexport” in Block 5 (Type of Application) of the BIS–748P “Multipurpose Application” form. The application also must specify the same foreign country for both the original ultimate consignee and the new ultimate consignee. [61 FR 12812, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996; 62 FR 25462, May 9, 1997; 63 FR 42229, Aug. 7, 1998; 64 FR 27146, May 18, 1999; 64 FR 47105, Aug. 30, 1999; 68 FR 35786, June 17, 2003; 69 FR 42865, July 19, 2004; 69 FR 64489, Nov. 5, 2004; 70 FR 8250, Feb. 18, 2005; 70 FR 54629, Sept. 16, 2005; 71 FR 20886, Apr. 24, 2006]
Title 15: Commerce and Foreign Trade
PART 748—APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND DOCUMENTATION
Supplement No. 2 to Part 748—Unique Application and Submission Requirements
