[Federal Register Volume 66, Number 190 (Monday, October 1, 2001)]
[Rules and Regulations]
[Pages 50090-50093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24648]



[[Page 50089]]

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Part VI





Department of Commerce





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Bureau of Export Administration



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15 CFR Parts 742 and 744



India and Pakistan: Lifting of Sanctions, Removal of Indian and 
Pakistani Entities, and Revision in License Review Policy; Final Rule

  Federal Register / Vol. 66, No. 190 / Monday, October 1, 2001 / Rules 
and Regulations  

[[Page 50090]]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 742 and 744

[Docket No. 010927238-1238-01]
RIN 0694-AC50


India and Pakistan: Lifting of Sanctions, Removal of Indian and 
Pakistani Entities, and Revision in License Review Policy

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: On September 22, 2001, President George W. Bush waived 
sanctions placed on India and Pakistan in May 1998, including those 
sanctions implemented by regulations issued on November 19, 1998 (63 FR 
64322). This rule implements the waiver of these sanctions by removing 
the policy of denial for exports and reexports of items controlled for 
Nuclear Proliferation (NP) and Missile Technology (MT) reasons to India 
and Pakistan and restoring the use of License Exceptions for these 
items for entities not listed on the Entity List. In addition, this 
rule removes the supplementary measures taken in connection with the 
sanctions by removing a large number of Indian and Pakistani entities 
from the Entity List. The license requirements and review policy for 
the entities that remain on the list are set forth on the list itself.

DATES: This rule is effective October 1, 2001.

FOR FURTHER INFORMATION CONTACT: Eileen M. Albanese, Director, Office 
of Exporter Services, Bureau of Export Administration, Telephone: (202) 
482-0436.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with section 102(b) of the Arms Export Control Act, 
President Clinton reported to the Congress on May 13, 1998, with regard 
to India, and on May 30, 1998, with regard to Pakistan, his 
determinations that those states had each detonated a nuclear explosive 
device. The President directed that the relevant agencies and 
instrumentalities of the United States take the necessary actions to 
implement the sanctions described in section 102(b)(2) of that Act. In 
light of the President's directive, the Bureau of Export Administration 
(BXA) adopted certain regulations to implement the sanctions, as well 
as certain supplementary measures to enhance the sanctions on November 
19, 1998 (63 FR 64322).
    On September 22, 2001, in Presidential Determination No. 2001-28, 
and pursuant to section 9001(b) of the Department of Defense 
Appropriations Act, 2000 (Public Law 106-79), President George W. Bush 
determined and certified to the Congress that the application to India 
and Pakistan of the sanctions and prohibitions contained in 
subparagraphs (B), (C), and (G) of section 102(b)(2) of the Arms Export 
Control Act would not be in the national security interest of the 
United States. Furthermore, pursuant to section 9001(a) of the 
Department of Defense Appropriations Act, 2000 (Public Law 106-79), the 
President waived, with respect to India and Pakistan, to the extent not 
already waived, the application of any sanction contained in sections 
101 or 102 of the Arms Export Control Act.
    Based on this Presidential Determination, this rule implements the 
lifting of these sanctions by removing section 742.16 of the Export 
Administration Regulations (EAR), which sets forth the policy of denial 
for exports and reexports of items controlled for Nuclear Proliferation 
(NP) and Missile Technology (MT) reasons to India and Pakistan. A 
license will continue to be required to India and Pakistan for these 
items, but the license review policy will revert to a case-by-case 
review, as set forth in sections 742.3 and 742.5 of the EAR for 
nuclear- and missile-controlled items, respectively. Also, exports of 
these items to India and Pakistan, other than exports to entities 
listed on the Entity List, are again eligible for the use of License 
Exceptions as provided in Part 740 of the EAR.
    In light of the President's determination, this rule also removes 
the supplementary measures, implemented in 1998, by removing sections 
744.11, ``Restrictions on certain government, parastatal, and private 
entities in Pakistan and India,'' and 744.12 , ``Restrictions on 
certain military entities in Pakistan and India,'' from the EAR. This 
rule also revises the list of Indian and Pakistani entities on the 
Entity List pursuant to section 744.1(c) of the EAR. License 
requirements for Indian and Pakistani entities on the Entity List are 
contained in Supplement No. 4 to Part 744 of the EAR. The license 
review policy for export and reexports to all Indian and Pakistani 
listed entities of items classified as EAR99 (items that are subject to 
the EAR, but are not listed on the Commerce Control List) is 
presumption of approval, and the license review policy for items listed 
on the Commerce Control List is case-by-case.
    The removal of entities from the Entity List eliminates the 
existing license requirements in Supplement No. 4 to Part 744 for 
exports to those entities. The removal of entities from the Entity List 
does not relieve exporters or reexporters of their obligations under 
part 744 of the EAR, which provides that a license is required even 
when one would not otherwise be necessary, if an exporter knows, has 
reason to know, or is otherwise informed by BXA that the item will be 
used in activities related to nuclear, chemical, or biological weapons, 
or missile delivery systems. BXA strongly urges the use of Supplement 
No. 3 to part 732 of the EAR, ``BXA's `Know Your Customer' Guidance and 
Red Flags'' when exporting or reexporting to India and Pakistan.
    Although the Export Administration Act expired on August 20, 2001, 
Executive Order 13222 of August 17, 2001 (66 FR 44025, August 22, 2001) 
continues the Regulations in effect under the International Emergency 
Economic Powers Act.

Rulemaking Requirements

    1. This final rule has been determined to be significant for 
purposes of E.O. 12866.
    2. This rule contains and 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 the Office of Management 
and Budget under control number 0694-0088, ``Multi-Purpose 
Application,'' which carries a burden hour estimate of 40 minutes to 
prepare and submit electronically and 45 minutes to submit manually on 
form BXA-748P; and 0694-0111, ``India Pakistan Sanctions,'' which 
carries a burden hour estimate of 40 minutes to prepare and submit 
electronically and 45 minutes to submit manually on form BXA-748P. 
Notwithstanding any other provision of law, no person is required to 
respond 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 OMB Control Number.
    3. This rule does not contain policies with Federalism implications 
as this term is defined under 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

[[Page 50091]]

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 final 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.
    Therefore, this regulation is issued in final form. Although there 
is no formal comment period, public comments on this regulation are 
welcome on a continuing basis. Comments should be submitted to Sharron 
Cook, Regulatory Policy Division, Bureau of Export Administration, 
Department of Commerce, P.O. Box 273, Washington, DC 20044 or E-mailed 
to [email protected].

List of Subjects

15 CFR Part 742

    Exports, Foreign trade.

15 CFR Part 744

    Exports, Foreign trade, Reporting and recordkeeping requirements.

    Accordingly, parts 742 and 744 of the Export Administration 
Regulations (15 CFR parts 730-799) are amended as follows:
    1. The authority citation for 15 CFR part 742 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 
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. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, August 22, 2001; Notice of November 9, 
2000, 65 FR 68063, 3 CFR, 2000 Comp., p. 408.


    2. The authority citation for 15 CFR part 744 is revised to read as 
follows:

    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; 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. 
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 
44025, August 22, 2001; Notice of November 9, 2000, 65 FR 68063, 3 
CFR, 2000 Comp., p. 408.

PART 742--[AMENDED]


Sec. 742.16  [Removed]

    3. Section 742.16 is removed and reserved.

PART 744--[AMENDED]


Sec. 744.1  [Amended]

    4. Section 744.1 is amended by revising the last sentence in 
paragraph (c) to read as follows: ``No License Exceptions are available 
for exports or reexports to listed entities of specified items, except 
License Exceptions for items listed in Sec. 740.2(a)(5) of the EAR 
destined to listed Indian or Pakistani entities intended to ensure the 
safety of civil aviation and safe operation of commercial passenger 
aircraft.''


Secs. 744.11 and 744.12  [Removed]

    5. Sections 744.11 and 744.12 are removed and reserved.

    6. Supplement No. 4 to part 744 is amended by removing Appendixes A 
and B and by revising the country ``India'' and ``Pakistan'' entries to 
read as follows:

                                                        Supplement No. 4 to Part 744--Entity List
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          Country                     Entity            License requirement    License review policy                Federal Register citation
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                   *                  *                  *                  *                  *                  *                  *
India.....................  Bharat Dynamics Limited..  For all items         Case-by-case for all       63 FR 64322, 11/19/98
                                                        subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/01/01]
                                                                              for EAR99 items.
                            The following              For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             subordinates of Defense    subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             Research and Development                         Presumption of approval   [Insert FR Cite, 10/1/01]
                             Organization (DRDO).                             for EAR99 items.
                            Armament Research and
                             Development
                             Establishment (ARDE).
                            Defense Research and
                             Development Lab (DRDL),
                             Hyderabad.
                            Missile Research and
                             Development Complex.
                            Solid State Physics
                             Laboratory.
                            The following Department   For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             of Atomic Energy           subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             entities.                                        Presumption of approval   [Insert FR Cite, 10/1/01]
                            Bhabha Atomic Research                            for EAR99 items.
                             Center (BARC).
                            Indira Gandhi Atomic
                             Research Center (IGCAR).
                            Indian Rare Earths.......
                            Nuclear reactors
                             (including power
                             plants), fuel
                             reprocessing and
                             enrichment facilities,
                             heavy water production
                             facilities and their
                             collocated ammonia
                             plants.

[[Page 50092]]

 
                            Indian Space Research      For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Organization (ISRO)        subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             headquarters in                                  Presumption of approval   [Insert FR Cite, 10/1/01]
                             Bangalore, and the                               for EAR99 items.
                             following subordinate
                             entities.
                            ISRO Telemetry, Tracking
                             and Command Network
                             (ISTRAC).
                            ISRO Inertial Systems
                             Unit (IISU),
                             Thiruvananthapuram.
                            Liquid Propulsion Systems
                             Center.
                            Solid Propellant Space
                             Booster Plant (SPROB).
                            Space Applications
                             Center, (SAC), Ahmadabad.
                            Sriharikota Space Center
                             (SHAR).
                            Vikram Sarabhai Space
                             Center (VSSC),
                             Thiruvananthapuram.
 
 
                   *                  *                  *                  *                  *                  *                  *
Pakistan..................  Abdul Qader Khan Research  For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Laboratories, a.k.a.       subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             Khan Research                                    Presumption of approval   [Insert FR Cite, 10/1/01]
                             Laboratories (KRL),                              for EAR99 items.
                             a.k.a. Engineering
                             Research Laboratories
                             (ERL), Kahuta.
                            Al Technique Corporation   For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             of Pakistan, Ltd.          subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Allied Trading Co........  For all items         Case-by-case for all       63 FR 64322, 11/19/98
                                                        subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            ANZ Importers and          For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Exporters, Islamabad.      subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Defence Science and        For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Technology Organization    subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             (DESTO), Rawalpindi.                             Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            High Technologies, Ltd.,   For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Islamabad.                 subject to the EAR.   items listed ion the      65 FR 14444, 03/17/00
                                                                              CCL. Presumption of       [Insert FR Cite, 10/1/01]
                                                                              approval for EAR99 items.
                            Karachi CBW Research       For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Institute, University of   subject to the EAR.   items listed on the CCL.  [Insert FR Cite, 10/1/01]
                             Karachi's Husein Ebrahim                         Presumption of approval
                             Jamal Research Institute                         for EAR99 items.
                             of Chemistry (HEJRIC).
                            Lastech Associates,        For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Islamabad.                 subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Machinery Master           For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Enterprises, Islamabad.    subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Maple Engineering Pvt.     For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Ltd. Consultants,          subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             Importers and Exporters.                         Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Orient Importers and       For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Exporters, Islamabad.      subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.

[[Page 50093]]

 
                            Pakistan Atomic Energy     For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Commission (PAEC), and     subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             the following                                    Presumption of approval   [Insert FR Cite, 10/1/01]
                             subordinate entities.                            for EAR99 items.
                            National Development
                             Complex (NDC).
                            Nuclear reactors
                             (including power
                             plants), fuel
                             reprocessing and
                             enrichment facilities,
                             all uranium processing,
                             conversion and
                             enrichment facilities,
                             heavy water production
                             facilities and any
                             collocated ammonia
                             plants.
                            Pakistan Institute for
                             Nuclear Science and
                             Technology (PINSTECH).
                            People's Steel Mills,      For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Karachi.                   subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Prime International......  For all items         Case-by-case for all       63 FR 64322, 11/19/98
                                                        subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Space and Upper            For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Atmospheric Research       subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             Commission (SUPARCO).                            Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Technical Services,        For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Islamabad.                 subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            The Tempest Trading        For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Company, Islamabad.        subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Unique Technical           For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Promoters.                 subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                                                                              Presumption of approval   [Insert FR Cite, 10/1/01]
                                                                              for EAR99 items.
                            Wah Chemical Product       For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             Plant.                     subject to the EAR.   items listed on the CCL.  [Insert FR Cite, 10/1/01]
                                                                              Presumption of approval
                                                                              for EAR99 items.
                            Wah Munitions Plant,       For all items         Case-by-case for all       63 FR 64322, 11/19/98
                             a.k.a. Explosives          subject to the EAR.   items listed on the CCL.  65 FR 14444, 03/17/00
                             Factory, Pakistan                                Presumption of approval   [Insert FR Cite, 10/1/01]
                             Ordnance Factories (POF).                        for EAR99 items.
 
 
                   *                  *                  *                  *                  *                  *                  *
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    Dated: September 27, 2001.
James J. Jochum,
Assistant Secretary for Export Administration.
[FR Doc. 01-24648 Filed 9-28-01; 8:45 am]
BILLING CODE 3510--33--P