Export Control Classification Number 0Y521 Series Supplement-Extension of Controls on an Emerging Technology (Software Specially Designed To Automate the Analysis of Geospatial Imagery Classification)

CourtIndustry And Security Bureau
Citation87 FR 729
Published date06 January 2022
SectionRules and Regulations
Record Number2021-28444
Federal Register, Volume 87 Issue 4 (Thursday, January 6, 2022)
[Federal Register Volume 87, Number 4 (Thursday, January 6, 2022)]
                [Rules and Regulations]
                [Pages 729-731]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-28444]
                Rules and Regulations
                 Federal Register
                This section of the FEDERAL REGISTER contains regulatory documents
                having general applicability and legal effect, most of which are keyed
                to and codified in the Code of Federal Regulations, which is published
                under 50 titles pursuant to 44 U.S.C. 1510.
                The Code of Federal Regulations is sold by the Superintendent of Documents.
                Federal Register / Vol. 87, No. 4 / Thursday, January 6, 2022 / Rules
                and Regulations
                [[Page 729]]
                Bureau of Industry and Security
                15 CFR Part 774
                [Docket No. 211222-0267]
                RIN 0694-AH89
                Export Control Classification Number 0Y521 Series Supplement--
                Extension of Controls on an Emerging Technology (Software Specially
                Designed To Automate the Analysis of Geospatial Imagery Classification)
                AGENCY: Bureau of Industry and Security, Commerce.
                ACTION: Interim final rule; technical amendment.
                SUMMARY: On January 6, 2020, the Bureau of Industry and Security (BIS)
                amended the Export Administration Regulations (EAR) to add Software
                Specially Designed to Automate the Analysis of Geospatial Imagery to
                the 0Y521 Temporary Export Control Classification Numbers (ECCN) Series
                as 0D521. BIS first extended controls on this emerging technology for a
                second year pursuant to the 0Y521 series extension procedures on
                January 6, 2021, and in this action extends these controls a second
                time for an additional year for a total of three years of this control
                since it was added to the EAR on January 6, 2020.
                DATES: This rule is effective January 6, 2022.
                FOR FURTHER INFORMATION CONTACT: Aaron Amundson, Director, Information
                Technology Division, Office of National Security and Technology
                Transfer Controls, at email [email protected] or by phone at
                (202) 482-5299.
                 On January 6, 2020, the Bureau of Industry and Security (BIS)
                amended the Export Administration Regulations (EAR) with an interim
                final rule to add an emerging technology--Software Specially Designed
                to Automate the Analysis of Geospatial Imagery--to the 0Y521 Temporary
                Export Control Classification Numbers (ECCN) Series as 0D521. (85 FR
                459, January 6, 2020). More specifically, the software was described as
                Geospatial imagery ``software'' ``specially designed'' for training a
                Deep Convolutional Neural Network to automate the analysis of
                geospatial imagery and point clouds. The following year, BIS extended
                that status for a year. (86 FR 461, January 6, 2021). These actions are
                consistent with Section 1758 (50 U.S.C. 4801) of the Export Control
                Reform Act of 2018 (ECRA), which requires the Department of Commerce to
                establish appropriate controls on the export, reexport, or transfer
                (in-country) of emerging and foundational technologies.
                 BIS established the ECCN 0Y521 series (April 13, 2012, 72 FR 22191)
                to identify items that warrant control on the Commerce Control List
                (CCL) but are not yet identified in an existing ECCN. Items in the
                0Y521 series of ECCNs are added upon a determination by the Department
                of Commerce, with the concurrence of the Departments of Defense and
                State, and other agencies as appropriate, that the items warrant
                control for export because the items may provide a significant military
                or intelligence advantage to the United States or because foreign
                policy reasons justify control. The ECCN 0Y521 series is a temporary
                holding classification.
                 Under the procedures set forth in Section 742.6(a)(8)(iii) of the
                EAR, items classified under ECCN 0Y521 remain so classified for one
                year from the date they are listed in supplement no. 5 to part 774 of
                the EAR, unless the items are re-classified under a different ECCN or
                the 0Y521 classification is extended. BIS may extend an item's ECCN
                0Y521 classification for two one-year periods, provided that the U.S.
                Government has submitted a proposal to the relevant multilateral
                regime(s) (e.g., the Wassenaar Arrangement) to obtain multilateral
                controls over the item, with the understanding that multilateral
                controls are preferable when practical. Further extension beyond three
                years may occur only if the Under Secretary for Industry and Security
                makes a determination that such extension is in the national security
                or foreign policy interest of the United States. Any extension or re-
                extension of control of an ECCN 0Y521 item, including the determination
                by the Under Secretary, shall be published in the Federal Register.
                 In this action, BIS extends the status of an item classified under
                a 0Y521 ECCN for a second time for an additional year, for a total of
                three years of this control since it was added to the EAR on January 6,
                2020, consistent with procedures that allow such an extension.
                Specifically, in this case the U.S. Government submitted a proposal for
                multilateral control of software specially designed to automate the
                analysis of geospatial imagery, as described in the January 6, 2020
                interim final rule and in ECCN 0D521, to the relevant multilateral
                regime (the Wassenaar Arrangement) in a timely manner, within the first
                year of the item's 0D521 classification. However, due to the pandemic,
                the Wassenaar Arrangement did not formally convene in 2020 and
                therefore was unable to consider acceptance of the proposal. Therefore,
                BIS published the first extension of this 0Y521 control on January 6,
                2021. However, the Wassenaar Arrangement's limited deliberations in
                2021 due to the pandemic did not allow for sufficient discussion of
                this proposal. An additional extension of time is appropriate in order
                for the U.S. Government to continue its effort at the Wassenaar
                Arrangement in 2022, and is consistent with the requirements of Section
                1758(c) of ECRA.
                Export Control Reform Act of 2018
                 On August 13, 2018, the President signed into law the John S.
                McCain National Defense Authorization Act for Fiscal Year 2019, which
                included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
                4852) that provides the legal basis for BIS's principal authorities and
                serves as the authority under which BIS issues this rule.
                Rulemaking Requirements
                 1. Executive Orders 13563 and 12866 direct agencies to assess all
                costs and benefits of available regulatory alternatives and, if
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety
                [[Page 730]]
                effects, distribute impacts, and equity). Executive Order 13563
                emphasizes the importance of quantifying both costs and benefits, of
                reducing costs, of harmonizing rules, and of promoting flexibility.
                This interim final rule has been designated to be not significant for
                purposes of Executive Order 12866.
                 2. Notwithstanding any other provision of law, no person is
                required to respond to, nor is subject to a penalty for failure to
                comply with a collection of information, subject to the requirements of
                the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
                unless that collection of information displays a currently valid OMB
                control number. This rule does not involve any collection of
                 3. This rule does not contain policies associated with Federalism
                as that term is defined under Executive Order 13132.
                 4. Pursuant to section 1762 of ECRA (see 50 U.S.C. 4821), this
                action is exempt from the Administrative Procedure Act requirements
                (under 5 U.S.C. 553) for notice of proposed rulemaking, opportunity for
                public participation, and delay in effective date. This rule only
                updates Supplement No. 5 to Part 774 to the EAR by extending the date
                of the period of validity of 0D521 software in Supplement No. 5 to Part
                774 for one year. This revision is merely technical and in accordance
                with established 0Y521 ECCN series procedure and purpose, which was
                proposed to the public and subject of comment. This rule clarifies
                information, which serves to avoid confusing readers about the 0D521
                item's status. It does not alter any right, obligation or prohibition
                that applies to any person under the EAR.
                 5. Because a notice of proposed rulemaking and an opportunity for
                public comment are not required to be given for this rule by 5 U.S.C.
                553, or by any other law, the analytical requirements of the Regulatory
                Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
                Accordingly, no regulatory flexibility analysis is required, and none
                has been prepared.
                List of Subjects in 15 CFR Part 774
                 Exports, Reporting and recordkeeping requirements.
                 Accordingly, part 774 of the Export Administration Regulations (15
                CFR parts 730 through 774) is amended as follows:
                1. The authority citation for part 774 continues to read as follows:
                 Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
                U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C.
                287c, 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15
                U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
                E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
                FR 44025, 3 CFR, 2001 Comp., p. 783.
                Supplement No. 5 to Part 774 [Amended]
                2. In Supplement No. 5 to part 774, amend the table under section
                ``0D521. Software'' by revising entry No 1. to read as follows:
                Supplement No. 5 to Part 774--Items Classified Under ECCNS 0A521,
                0B521, 0C521, 0D521 and 0E521
                * * * * *
                Item descriptor...................... Date of initial or Date when the item will Item-specific license
                Note: The description must match by subsequent BIS be designated EAR99, exception eligibility.
                 model number or a broader descriptor classification. unless reclassified in
                 that does not necessarily need to be (ID = initial date; SD another ECCN or the
                 company specific. = subsequent date). 0Y521 classification
                 is reissued.
                 * * * * * * *
                 0D521. Software.
                No. 1 Geospatial imagery ``software'' January 6, 2020 (ID)... January 6, 2023........ License Exception GOV
                 ``specially designed'' for training under Sec.
                 a Deep Convolutional Neural Network 740.11(b)(2)(ii) only.
                 to automate the analysis of
                 geospatial imagery and point clouds,
                 and having all of the following:
                1. Provides a graphical user
                 interface that enables the user to
                 identify objects (e.g., vehicles,
                 houses, etc.) from within geospatial
                 imagery and point clouds in order to
                 extract positive and negative
                 samples of an object of interest;
                2. Reduces pixel variation by
                 performing scale, color, and
                 rotational normalization on the
                 positive samples;
                3. Trains a Deep Convolutional Neural
                 Network to detect the object of
                 interest from the positive and
                 negative samples; and
                4. Identifies objects in geospatial
                 imagery using the trained Deep
                 Convolutional Neural Network by
                 matching the rotational pattern from
                 the positive samples with the
                 rotational pattern of objects in the
                 geospatial imagery.
                Technical Note: A point cloud is a
                 collection of data points defined by
                 a given coordinate system. A point
                 cloud is also known as a digital
                 surface model.
                 * * * * * * *
                [[Page 731]]
                Thea D. Rozman Kendler,
                Assistant Secretary for Export Administration.
                [FR Doc. 2021-28444 Filed 1-5-22; 8:45 am]
                BILLING CODE 3510-33-P

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