The regulation appears to pertain to _Three or more axis_ CNC machine with a sub 1.1 micron repeatability on one or more axes. That's not a 50s manual jig borer, that's a very high end modern(ish) CNC machine.
The Canadian implementation (Obviously not US law but it's implementing the same treaty), is a little more readable. https://www.international.gc.ca/controls-controles/about-a_p...