On September 20, 2016, the Bureau of Industry and Security (BIS) published in the Federal Register a final rule [160217120–6120–01] that revises the Commerce Control List (CCL), as well as corresponding parts of the Export Administration Regulations (EAR), to implement changes made to the Wassenaar Arrangement’s List of Dual-Use Goods and Technologies (WA List) maintained and agreed to by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Wassenaar Arrangement, or WA) at the December 2015 WA Plenary Meeting (the Plenary). The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability. The rule harmonizes the CCL with the changes made to the WA List at the Plenary by revising Export Control Classification Numbers (ECCNs) controlled for national security reasons in each category of the CCL, as well as making other associated changes to the EAR.
The changes to the WA List include raising the Adjusted Peak Performance (APP) for high performance computers. The President’s report for High Performance Computers was sent to Congress on June 1, 2016, to set forth the new APP in accordance with the National Defense Authorization Act (NDAA) for FY1998.
The rule also makes changes to the EAR that were not agreed to at the WA Plenary. APP parameters are amended in several places in the EAR by the rule, such as APP parameters in the de minimis rules, License Exception APP, and related reporting requirements. BIS is also updating license requirements and policies associated with Category 5—Part 2, including revising ECCNs 5A992, 5D992 and 5E992. In addition, the rule removes the Foreign National Review requirement associated with deemed exports under License Exceptions APP and CIV.
The final rule was effective on publication.