[Federal Register Volume 66, Number 155 (Friday, August 10, 2001)]
[Rules and Regulations]
[Pages 42108-42110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20148]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Parts 734 and 740
[Docket No. 010710166-1166-01]
RIN 0694-AB76
Revisions to the Export Administration Regulations; Country Group
E:1; License Exception TMP
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Interim final rule.
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SUMMARY: This interim final rule amends the Export Administration
Regulations (EAR) by revising Country Group E:1 to include all
terrorist-supporting countries, and replacing references to Cuba, Iran,
Iraq, Libya, North Korea, Sudan and Syria with Country Group E:1 where
appropriate. This rule also expands the scope of eligible countries for
License Exception TMP for exhibition and demonstration to all countries
except the new Country Group E:1, with certain restrictions.
DATES: This rule is effective August 10, 2001. Comments on this rule
must be received on or before September 10, 2001.
ADDRESSES: Written comments should be sent to Sharron Cook, Regulatory
Policy Division, Bureau of Export Administration, Room 2705, 14th
Street and Pennsylvania Ave., NW., Washington, DC 20230.
FOR FURTHER INFORMATION CONTACT: Sharron Cook, Regulatory Policy
Division, Bureau of Export Administration, at (202) 482-2440.
SUPPLEMENTARY INFORMATION:
Background
The Bureau of Export Administration (BXA) is amending the Export
Administration Regulations (EAR) to continue its efforts to simplify
the EAR and to reflect current business practice and world
circumstance. Specifically, this rule amends the EAR by revising the
list of countries included in Country Group E:1 in Supplement No. 1 to
part 740.
This rule revises Country Group E:1, in Supplement no. 1 to part
740 of the EAR. This country group currently lists the countries
subject to United Nations embargo, is revised by listing countries
designated by the Department of State as those countries whose
governments have repeatedly provided support for acts of international
terrorism (Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria).
Therefore, this rule removes Angola, Bosnia and Herzegovina, and Rwanda
from Country Group E:1, and adds Iran, Sudan and Syria. This rule does
not change export control policy or license requirements for these
countries or for Angola, Serbia and Montenegro, or Rwanda set forth in
parts 742 and 746. This rule also makes conforming changes in
Sec. 734.4--De minimis U.S. content, Sec. 740.9--Temporary imports,
export, and reexports (TMP), Sec. 740.10--Servicing and replacement of
parts and equipment (RPL) by replacing references to those countries
with the phrase ``Country Group E:1.''
This rule also expands the scope of eligible countries for License
Exception TMP for exhibition and demonstration by making Country Group
D:1 eligible for this provision. Under License Exception TMP, you may
now export or reexport commodities and software for exhibition or
demonstration in any country, including countries in Country Group D:1,
except a country listed in Country Group E:1, subject to the terms and
conditions of License Exception TMP and the restrictions that apply to
all License Exceptions in Sec. 740.2 of the EAR.
This rule clarifies that a license exception may be applicable to
items for which a license would otherwise be required under General
Prohibition one, two, three, or eight.
Rulemaking Requirements
1. This interim final rule has been determined to be not
significant for purposes of E.O. 12866.
[[Page 42109]]
2. Notwithstanding any other provision of law, no person is
required to respond to nor 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 current valid OMB Control Number. This rule involves a
collection of information subject to the Paperwork Reduction Act of
1980 (44 U.S.C. 3501 et seq.). This collection has been approved by the
Office of Management and Budget under control number 0694-0088.
3. This rule does not contain policies with Federalism impacts as
that term is defined in Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military and foreign affairs
function of the United States (See 5 U.S.C. 553(a)(1)). Further, no
other law requires that a notice of proposed rulemaking and an
opportunity for public comment be given for this interim rule. Because
a notice of proposed rulemaking and an opportunity for public comment
are not required to be given for this rule under 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.
However, because of the importance of the issues raised by these
regulations, this rule is being issued in interim form and BXA will
consider comments in the development of the final regulations.
Accordingly, the Department encourages interested persons who wish
to comment to do it at the earliest possible time to permit the fullest
consideration of their views.
The period for submission of comments will close September 10,
2001. The Department will consider all comments received before the
close of the comment period in developing final regulations. Comments
received after the end of the comment period will be considered if
possible, but their consideration cannot be assured. The Department
will not accept public comments accompanied by a request that a part or
all of the material be treated confidentially because of its business
proprietary nature or for any other reason. The Department will return
such comments and materials to the persons submitting the comments and
will not consider them in the development of final regulations. All
public comments on these regulations will be a matter of public record
and will be available for public inspection and copying. In the
interest of accuracy and completeness, the Department requires comments
be submitted in written form. Oral comments must be followed by written
memoranda, which will also be a matter of public record and will be
available for public review and copying.
The public record concerning these comments will be maintained in
the Bureau of Export Administration, Office of Administration, U.S.
Department of Commerce, Room 6883, 14th and Constitution Avenue, NW.,
Washington, DC 20230; (202) 482-0637. This component does not maintain
a separate public inspection facility. Requesters should first view
BXA's FOIA website (which can be reached through http://www.bxa.doc.gov/foia). If the records sought cannot be located at this
site, or if the requester does not have access to a computer, please
call the number above for assistance.
List of Subjects
15 CFR Part 734
Administrative practice and procedure, Exports, Foreign trade.
15 CFR Part 740
Administrative practice and procedure, Exports, Foreign trade,
Reporting and Record keeping requirements.
Accordingly, parts 734 and 740 of the Export Administration
Regulations (15 CFR Parts 730-799) are amended as follows:
1. The authority citation for 15 CFR part 734 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; Pub. L. 106-508; 50
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp. p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13206, 66 FR 18397,
April 9, 2001; Notice of November 9, 2000, 65 FR 68063, 3 CFR, 2000
Comp., p. 408.
2. The authority citation for part 740 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; Pub. L. 106-508; 50
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13206, 66 FR 18397, April 9, 2001.
PART 734--[AMENDED]
3. Section 734.4 is amended by revising the introductory text of
paragraph (c) to read as follows:
Sec. 734.4 De minimis U.S. content.
* * * * *
(c) Except as provided in paragraph (a) and (b) of this section for
certain computers and items controlled for EI reasons, the following
reexports are not subject to the EAR when made to either an embargoed
country listed in part 746 of the EAR or to a terrorist-supporting
country listed in Country Group E:1 (see Supplement No. 1 to part 740
of the EAR):
* * * * *
PART 740--AMENDED
4. Section 740.1 is amended in paragraph (a) by:
a. Revising the phrase ``Prohibition One, Two, or Three,'' to read
``Prohibition One, Two, Three, or Eight,'', in the first sentence; and
b. Revising the phrase ``Prohibitions Four, Seven, Eight, Nine, or
Ten,'' to read ``Prohibitions Four, Seven, Nine, or Ten,'' in the last
sentence.
5. Section 740.8 is amended by revising the phrase ``except Cuba,
Libya, North Korea, Iraq, Iran, Syria, and Sudan'' to read ``except
destinations in Country Group E:1 (see Supplement No. 1 to this
part).'' in paragraph (c).
6. Section 740.9 is amended:
a. By revising the heading and first sentence of paragraph
(a)(2)(iii); and
b. By revising paragraph (a)(3)(i)(A) to read as follows:
Sec. 740.9 Temporary imports, exports, and reexports (TMP).
* * * * *
(a) * * *
(2) * * *
(iii) Exhibition and demonstration. You may export or reexport
under this provision commodities and software for exhibition or
demonstration in all countries except countries listed in Country Group
E:1 (see Supplement No. 1 to this part) provided that the exporter
maintains ownership of the commodities and software while they are
abroad and provided that the exporter, an employee of the exporter, or
the exporter's designated sales representative retains ``effective
control'' over the commodities and software while they are abroad (see
part 772 of the EAR for a definition of ``effective control''). * * *
* * * * *
(3) Special restrictions. (i) Destinations. (A) No commodity or
software may be exported or reexported under paragraph (a) of this
section to Country Group E:2 (see Supplement No. 1 to this part) except
as permitted by paragraph (a)(2)(viii) of this section (news media).
These destination restrictions apply to temporary exports to and for
use on any vessel, aircraft or territory under the ownership, control,
lease, or charter by any country in
[[Page 42110]]
Country Group E:2, or any national thereof.
* * * * *
7. Section 740.10 is amended:
a. By revising the phrase ``Cuba, Iran, Iraq, Sudan, Syria, Libya,
or North Korea'' in paragraph (a)(3)(iv) to read ``countries in Country
Group E:1 (see Supplement No. 1 to this part)'';
b. By revising paragraph (b)(2)(iv); and
c. By revising the phrase ``Cuba, Iran, Iraq, Libya, North Korea,
Sudan or Syria'' in paragraph (b)(3)(i)(D) to read ``countries in
Country Group E:1 (see Supplement No. 1 to this part)''.
Sec. 740.10 Servicing and replacement of parts and equipment (RPL).
* * * * *
(b) * * *
(2) * * *
(iv) Terrorist supporting countries. No repaired commodity or
software may be exported or reexported to countries in Country Group
E:1 (see Supplement No. 1 to this part).
* * * * *
8. Section 740.13 is amended by revising the phrase ``except Cuba,
Iran, Iraq, Libya, North Korea, Sudan, and Syria'' in paragraph
(d)(3)(i) to read ``except destinations in Country Group E:1 (see
Supplement No. 1 to this part).''
9. Section 740.15 is amended:
(a) By revising the phrase ``Cuba, Iran, Iraq, Libya, North Korea,
Sudan, or Syria'' in paragraphs (a)(1)(i), (a)(1)(ii), (a)(3)(iv),
(a)(3)(v), (a)(3)(vi), (a)(3)(vii), (a)(3)(viii) and (a)(3)(ix) to read
``a destination in Country Group E:1 (see Supplement No. 1 to this
part)''; and
(b) By revising the phrase ``Cuba, Iran, Iraq, Sudan, Syria, Libya,
and North Korea'' in paragraph (a)(2)(ii) to read ``a destination in
Country Group E:1 (see Supplement No. 1 to this part)''.
10. Supplement No. 1 to part 740 is amended by revising Country
Group E:1 to read as follows:
Supplement No. 1 to Part 740
* * * * *
Country Group E
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[E:1]
Terrorist [E:2]
Country supporting unilateral
countries embargo \1\
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Cuba........................................ X X
Iran........................................ X ............
Iraq........................................ X ............
Korea, North................................ X ............
Libya....................................... X X
Sudan....................................... X ............
Syria....................................... X ............
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\1\ In addition to the controls of the EAR that the Bureau of Export
Administration administers, note that the Treasury Department's Office
of Foreign Assets Control administers:
(a) A comprehensive embargo against Cuba, Iran, Iraq, Libya, Sudan, and
the Taliban and areas of Afghanistan controlled by the Taliban;
(b) A ban on arms and specified items destined to the National Union for
the Total Independence of Angola (UNITA) located in Angola; and
(c) An embargo against certain individuals and entities, e.g., Specially
Designated Terrorists (SDT). (Note: The Department of State also
imposes sanctions on certain individuals and entities, please consult
with the Department of State for further information concerning these
controls.)
Dated: August 1, 2001.
James J. Jochum,
Assistant Secretary for Export Administration.
[FR Doc. 01-20148 Filed 8-9-01; 8:45 am]
BILLING CODE 3510-33-P