[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]


=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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
------------------------------------------------------------------------
                                                  [E:1]
                                                Terrorist       [E:2]
                   Country                     supporting    unilateral
                                                countries    embargo \1\
------------------------------------------------------------------------
Cuba........................................            X             X
Iran........................................            X   ............
Iraq........................................            X   ............
Korea, North................................            X   ............
Libya.......................................            X             X
Sudan.......................................            X   ............
Syria.......................................            X   ............
------------------------------------------------------------------------
\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