21 March 2006
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[Federal Register: March 21, 2006 (Volume 71, Number 54)]
[Rules and Regulations]
[Page 14097-14099]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21mr06-5]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 740, 744, 766, and 770
[Docket No. 060109005-6005-01]
RIN 0694-AD67
Corrections and Clarifications to the Export Administration
Regulations
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: This rule revises the Export Administration Regulations (EAR)
to clarify certain provisions or to update technical information. The
Bureau of Industry and Security identified these revisions through
internal review or questions from the public.
DATES: This rule is effective March 21, 2006.
ADDRESSES: Send comments regarding the Paperwork Reduction Act burden
estimates or any other aspect of the collection of information affected
by this rule to David Rostker, OMB Desk Officer, by e-mail at
david_rostker@omb.eop.gov or by fax to 202 395 7285; with a copy to the
Regulatory Policy Division, Bureau of Industry and Security at one of
the addresses below. Send comments concerning any other aspect of this
rule via e-mail to rpd2@bis.doc.gov, via fax to 202 482 3355 or to the
Regulatory Policy Division, Bureau of Industry and Security, Room
H2017, U.S. Department of Commerce, Washington, DC 20230. Please refer
to RIN 0694-AD67 in all comments.
FOR FURTHER INFORMATION CONTACT: William Arvin, Regulatory Policy
Division, warvin@bis.doc.gov, tel. (202) 482-2440.
SUPPLEMENTARY INFORMATION:
Background
BIS reviews the EAR to identify provisions that contain incorrect
citations, are obsolete, or that otherwise need correcting. In
addition, members of the public sometimes point out provisions that
need revising. This rule makes several such revisions as more fully
described below.
Clarification of Country Group Restrictions on Use of Certain License
Exceptions
Section 740.9(b) of the Export Administration Regulations provides
an exception to export license requirements for items temporarily in
the United States under certain circumstances. Two of those
circumstances are: Items traveling through the United States, and items
imported into the United States for display at exhibitions or trade
fairs. If such items are listed on the Commerce Control List for
national security, nuclear nonproliferation, chemical or biological
weapons proliferation or missile technology reasons, the License
Exception provisions that govern these two circumstances do not
authorize exports to certain destinations in Country Group D (Supp. No.
1 to Part 740) because of national security, nuclear nonproliferation,
chemical or biological weapons, or missile technology concerns.
Clarification of Country Group Restrictions on Use of License Exception
TMP for Items Moving Through the United States
Prior to publication of this rule, Sec. 740.9(b)(1)(i), which
relates to items moving in transit through the United States,
transposed terms in a way that could appear to restrict items
controlled for missile technology reasons from being sent to countries
of concern for chemical and biological weapons reasons and to restrict
items controlled for chemical and biological reasons to countries of
concern regarding missiles. Specifically, the phrase ``Items controlled
for national security, nuclear proliferation, missile technology, or
chemical and biological weapons reasons may not be exported to Country
Group D:1, 2, 3, or 4 * * * respectively * * *'' appeared to restrict
items controlled for missile technology reasons from Country Group D:3,
although Country Group D:3 lists countries of concern for chemical and
biological weapons reasons, and to restrict items controlled for
chemical or biological weapons proliferation reasons from Country Group
D:4, although Country Group D:4 of the EAR, lists countries of concern
for missile technology reasons. This rule transposes the phrases
``missile technology'' and ``chemical or biological weapons'' in Sec.
740.9(b)(1)(i) to match them to their relevant country groups.
Clarification of Country Group Restrictions on Use of License Exception
TMP for Items Imported Into the United States for Exhibitions or Trade
Fairs
Prior to publication of this rule, Sec. 740.9(b)(2)(ii)(C), which
relates to items imported for display at exhibitions or trade fairs and
being exported to a destination other than that from which imported,
transposed terms in a way that could appear to restrict items
controlled for missile technology
[[Page 14098]]
reasons from being sent to countries of concern for nuclear
proliferation reasons and to restrict items controlled for nuclear
proliferation reasons from being sent to countries of concern for
missile proliferation reasons. Specifically, the phrase ``Exports to
Country Group D:1, 2, 3, or 4 * * * of items controlled for national
security, missile technology, chemical or biological weapons reasons or
nuclear proliferation, respectively'' illogically appeared to restrict
items controlled for missile technology reasons from Country Group D:2
although Country Group D:2 lists countries of concern for nuclear
proliferation reasons and to restrict items controlled for nuclear
nonproliferation reasons from Country Group D:4 although Country Group
D:4 lists countries of concern for missile proliferation reasons. This
rule transposes the phrases ``missile technology'' and ``nuclear
proliferation'' in Sec. 740.9(b)(2)(ii)(C) to match them to their
relevant country groups.
Correction of Citations in Statement of Licensing Policy Regarding
Entities Sanctioned Pursuant to Section 11B(1)(B) of the Export
Administration Act
Section 744.19 of the EAR describes BIS's licensing policy
regarding certain sanctioned entities, including entities sanctioned
pursuant to section 11B(1)(B) of the Export Administration Act of 1979
as amended. Prior to publication of this rule, paragraph (c) of Sec.
744.19 incorrectly cited section 11B(1)(B)(i) of the EAA as the section
providing for denial of items controlled pursuant to the Export
Administration Act of 1979 and paragraph (d) incorrectly cited section
11B(1)(B)(ii) as the section providing for denial of items on the MTCR
Annex. The citations should be reversed. This rule replaces the ``(i)''
in the citation in paragraph (c) with a ``(ii)'' and the ``(ii)'' in
the citation in paragraph (d) with a ``(i)'' thereby correcting the
citations.
Revision of Administrative Law Judge Address
This rule revises the address of the Administrative Law Judge in
Sec. 766.24 to reflect the address currently in use.
Removal of Obsolete Interpretation
This rule removes and reserves Sec. 770.1(c)--Interpretation 3--
because the commodities to which it applies are no longer on the
Commerce Control List. That interpretation first appeared in the
regulations in 1966, when metallic wire and cable were listed on the
antecedent of the Commerce Control List. No such entry has appeared on
the Commerce Control List in several years.
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 2, 2005,
70 FR 45273 (August 5, 2005), has continued the Export Administration
Regulations in effect under the International Emergency Economic Powers
Act.
Rulemaking Requirements
1. This 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 involves collections of information subject
to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et. seq.). These
collections have been approved by 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. BIS believes that this rule will not materially affect the
burden imposed by this collection.
3. This rule does not contain policies with federalism implications
as that term is defined under E.O. 13132.
4. The Department finds that there is good cause under 5 U.S.C.
553(b)(B) to waive the provisions of the Administrative Procedure Act
requiring prior notice and the opportunity for public comment because
it is unnecessary. The changes made by this rule correct inadvertent
drafting errors. Therefore it is unnecessary to provide notice and
opportunity for public comment. In addition, the 30-day delay in
effectiveness required by 5 U.S.C. 553(d) is not applicable because
this rule is not a substantive rule.
Because notice of proposed rulemaking and 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.
List of Subjects
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
15 CFR Part 766
Administrative practice and procedure, Confidential business
information, Exports, Law enforcement, Penalties.
15 CFR Part 770
Exports.
0
Accordingly, parts 740, 744, 766 and 770 of the Export Administration
Regulations (15 CFR 770-799) are amended as follows:
PART 740--LICENSE EXCEPTIONS
0
1. The authority citation for part 740 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
Sec. 901-911, Pub. L. 106-387; 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 2, 2005, 70 FR 45273 (August 5, 2005).
0
2. In Sec. 740.9, revise paragraphs (b)(1)(i) and (b)(2)(ii)(C) to
read as follows:
Sec. 740.9 Temporary imports, exports, and reexports (TMP).
* * * * *
(b) * * *
(1) * * *
(i) Items controlled for national security reasons, nuclear
nonproliferation reasons, chemical and biological weapons reasons or
missile technology reasons may not be exported to Country Group D:1, 2,
3, or 4 (see Supplement No. 1 to part 740), respectively, under this
paragraph (b)(1).
* * * * *
(2) * * *
(ii) * * *
(C) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 1
to part 740) of items controlled for national security reasons, nuclear
nonproliferation reasons, chemical and biological weapons reasons or
missile technology reasons, respectively.
* * * * *
PART 744--CONTROL POLICY: END-USER AND END-USE BASED
0
3. The authority citation for part 744 continues to read as follows:
[[Page 14099]]
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; Sec. 901-911, Pub. L. 106-
387; Sec. 221, Pub. L. 107-56; E.O. 12058, 43 FR 20947, 3 CFR, 1978
Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60
FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224,
66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of August 2, 2005, 70
FR 45273 (August 5, 2005); Notice of October 25, 2005, 70 FR 62027
(October 27, 2005).
0
4. In Sec. 744.19, revise paragraphs (c) and (d) to read as follows:
Sec. 744.19 Licensing policy regarding persons sanctioned pursuant to
specified statutes.
* * * * *
(c) A sanction issued pursuant to section 11B(b)(1)(B)(ii) of the
Export Administration Act of 1979, as amended, and as carried out by
Executive Order 13222 of August 17, 2001, that prohibits the issuance
of new licenses for exports to the sanctioned entity of items
controlled pursuant to the Export Administration Act of 1979.
(d) A sanction issued pursuant to section11B(b)(1)(B)(i) of the
Export Administration Act of 1979, as amended (Missile Technology
Control Act of 1990), and as carried out by an Executive Order 13222 of
August 17, 2001, that prohibits the issuance of new licenses for
exports to the sanctioned entity of MTCR Annex equipment or technology
controlled pursuant to the Export Administration Act of 1979.
PART 766--ADMINISTRATIVE ENFORCEMENT PROCEEDINGS
0
5. The authority citation for part 766 is revised 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
2, 2005, 70 FR 45273 (August 5, 2005).
0
6. In Sec. 766.24, revise the second sentence of paragraph (e)(3) to
read as follows:
Sec. 766.24 Temporary denials.
* * * * *
(e) * * *
(3) Appeal Procedure.
* * * Service on the administrative law judge shall be addressed to
U.S. Coast Guard, ALJ Docketing Center, 40 S. Gay Street, Baltimore,
Maryland, 21202-4022. * * *
* * * * *
PART 770--INTERPRETATIONS
0
7. The authority citation for part 770 is revised 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
2, 2005, 70 FR 45273 (August 5, 2005).
Sec. 770.2 [Amended]
0
8. In Sec. 770.2, remove and reserve paragraph (c).
Dated: March 14, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 06-2685 Filed 3-20-06; 8:45 am]
BILLING CODE 3510-33-P