[Federal Register Volume 67, Number 166 (Tuesday, August 27, 2002)]
[Rules and Regulations]
[Pages 54952-54953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21596]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 736, 758, 764, 766 and 772

[Docket No. 020628162-2162-01]
RIN 0694-AC58


Revision to the Export Administration Regulations: Denied Persons 
List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule removes references in the Export Administration 
Regulations (EAR) to the ``Denied Persons List'' maintained by the 
Bureau of Industry and Security because the list is described, but not 
published, in the Code of Federal Regulations, and is not intended to 
be legally controlling. This rule also makes a format change in the 
template of the standard denial order published in the EAR.

EFFECTIVE DATE: This rule is effective August 26, 2002.

FOR FURTHER INFORMATION CONTACT: Thomas W. Andrukonis, Director, Office 
of Enforcement Analysis, Bureau of Industry and Security, Telephone: 
(202) 482-4255.

SUPPLEMENTARY INFORMATION:

Background

    As described in section 764.3 of the Export Administration 
Regulations (15 CFR 764.3), the Bureau of Industry and Security (BIS) 
has the authority to issue an order that restricts the ability of 
persons named in it to engage in export or reexport transactions of 
items subject to the Export Administration Regulations (EAR) and 
restricts their access to items subject to the regulations. These 
orders may also prohibit all persons from taking certain actions 
specified in the order because those actions could circumvent the 
restrictions imposed on the denied person by the order. BIS publishes 
notices of such orders in the Federal Register to provide notice to all 
persons of the provisions of the order. BIS maintains unofficial 
compilations of such denial orders, for the convenience of the public, 
in a ``Denied Persons List'' included in the unofficial version of the 
EAR and on a Web site. Because these compilations are not included in 
the Code of Federal Regulations, this rule removes references to the 
``Denied Persons List'' from the EAR in parts 732, 736, 758, 764, 766 
and 772. References to the ``Denied Persons List'' in part 752 of the 
EAR will be removed in a separate rule.
    This rule also replaces the word ``immediately'' with ``[date]'' in 
the last sentence of the pro forma standard denial order, because a 
standard order need not be effective as of the date of signing. This 
rule does not change the scope of any order denying export privileges, 
nor does it change the rights or duties of any person with respect to 
the Export Administration Regulations.

Rulemaking Requirements

    1. This final 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 does not involve a collection of information 
subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et 
seq.).
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to 5 U.S.C. 553(b)(A), the provisions of the 
Administrative Procedure Act requiring a notice of proposed rulemaking 
and the opportunity for public comment are waived, because this 
regulation involves a rule of agency procedure. No other law requires 
that a notice of proposed rulemaking and an opportunity for public 
comment be given for this rule.
    Additionally, pursuant to 5 U.S.C. 553(d)(2), the 30 day delay in 
effectiveness is waived for the same reason. Because a notice of 
proposed rulemaking and an 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. 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 William Arvin, Office 
of Exporter Services, Bureau of Industry and Security, Department of 
Commerce, P.O. Box 273, Washington, D.C. 20044.

List of Subjects

15 CFR Parts 732 and 758

    Administrative practice and procedure, Advisory committees, 
Exports, Foreign trade, Reporting and recordkeeping requirements.

15 CFR Parts 736 and 772

    Exports, Foreign trade.

15 CFR Part 764

    Administrative practice and procedure, Exports, Foreign trade, Law 
enforcement, Penalties.

15 CFR Part 766

    Administrative practice and procedure, Confidential business 
information, Exports, Foreign trade.

    Accordingly, parts 732, 736, 758, 764, 766 and 772 of the Export 
Administration Regulations (15 CFR parts 730-799) are amended as 
follows:

PART 732--[AMENDED]

    1. The authority citation for 15 CFR part 732 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
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 14, 2002, 67 
FR 53721, August 16, 2002.


    2. Section 732.3 is amended by revising paragraph (g)(1) to read as 
follows:


Sec. 732.3  Steps regarding the ten general prohibitions.

* * * * *
    (g) * * *
    (1) Determine whether your transferee, ultimate end-user, any 
intermediate consignee, or any other party to a transaction is a person 
denied export privileges (see part 764 of the EAR). It is a violation 
of the EAR to

[[Page 54953]]

engage in any activity that violates the terms or conditions of a 
denial order. General Prohibition Four (Denial Orders) applies to all 
items subject to the EAR, i.e., both items on the CCL and within EAR99.
* * * * *

PART 736--[AMENDED]

    3. The authority citation for 15 CFR part 736 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 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. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Notice of November 9, 2001, 66 FR 56965, 3 CFR, 2001 Comp., p. 
917; Notice of August 14, 2002, 67 FR 53721, August 16, 2002.


    4. Section 736.2 is amended by revising paragraph (b)(4)(i) to read 
as follows:


Sec. 736.2  General Prohibitions and Determination of Applicability.

* * * * *
    (b) * * *
    (4) * * *
    (i) You may not take any action that is prohibited by a denial 
order issued under part 766 of the EAR, Administrative Enforcement 
Proceedings. These orders prohibit many actions in addition to direct 
exports by the person denied export privileges, including some 
transfers within a single country, either in the United States or 
abroad, by other persons. You are responsible for ensuring that any of 
your transactions in which a person who is denied export privileges is 
involved do not violate the terms of the order. Orders denying export 
privileges are published in the Federal Register when they are issued 
and are the legally controlling documents in accordance with their 
terms. BIS also maintains compilations of persons denied export 
privileges on a Web site and as a supplement to the unofficial edition 
of the EAR available by subscription from the Government Printing 
Office. BIS may, on an exceptional basis, authorize activity otherwise 
prohibited by a denial order. See Sec. 764.3(a)(2) of the EAR.
* * * * *

PART 758--[AMENDED]

    5. The authority citation for 15 CFR part 758 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 
14, 2002, 67 FR 53721, August 16, 2002.

    6. Section 758.2 is amended by revising paragraph (c)(2) to read as 
follows:


Sec. 758.2  Automated Export System (AES).

* * * * *
    (c) * * *
    (2) Applicants are denied persons; or
* * * * *

PART 764--[AMENDED]

    7. The authority citation for 15 CFR part 764 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 
14, 2002, 67 FR 53721, August 16, 2002.

    8. Supplement No. 1 to Part 764 is amended by revising paragraph 
(a) (the undesignated paragraphs following paragraph (a) are 
unchanged), revising the heading and introductory text of paragraph 
(b), and revising the last sentence of the Supplement to read as 
follows:

SUPPLEMENT NO. 1 TO PART 764-STANDARD TERMS OF ORDERS DENYING 
EXPORT PRIVILEGES

    (a) General. (1) Orders denying export privileges may be 
``standard'' or ``non-standard.'' This Supplement specifies terms of 
the standard order denying export privilege with respect to denial 
orders issued after March 25, 1996. Denial orders issued prior to March 
25, 1996 are to be construed, insofar as possible, as having the same 
scope and effect as the standard denial order. All denial orders are 
published in the Federal Register. The failure by any person to comply 
with any denial order is a violation of the Export Administration 
Regulations (EAR) (see Sec. 764.2(k) of this part). BIS provides lists 
of denied persons on a Web site and as a supplement to the unofficial 
edition of the EAR available by subscription from the Government 
Printing Office.
    (2) Each denial order shall include:
    (i) The name and address of any denied persons and any related 
persons subject to the denial order;
    (ii) The basis for the denial order, such as final decision 
following charges of violation, settlement agreement, section 11(h) of 
the EAA, or temporary denial order request;
    (iii) The period of denial, the effective date of the order, 
whether and for how long any portion of the denial of export privileges 
is suspended, and any conditions of probation; and
    (iv) Whether any or all outstanding licenses issued under the EAR 
to the person(s) named in the denial order or in which such person(s) 
has an interest, are suspended or revoked.
* * * * *
    (b) Standard denial order terms. The following are the standard 
terms for imposing periods of export denial. Some orders also contain 
other terms, such as those that impose civil penalties, or that suspend 
all or part of the penalties or period of denial.
* * * * *
    This order, which constitutes the final agency action in this 
matter, is effective [DATE].

    9. Supplement No. 2 to Part 764 is removed.

PART 766--[AMENDED]

    10. The authority citation for 15 CFR 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 
14, 2002, 67 FR 53721, August 16, 2002.
    11. Section 766.25 is amended by revising paragraph (f) to read as 
follows:


Sec. 766.25  Administrative action denying export privileges.

* * * * *
    (f) Publication. The orders denying export privileges under this 
section are published in the Federal Register when issued, and, for the 
convenience of the public, information about those orders may be 
included in compilations maintained by BIS on a Web site and as a 
supplement to the unofficial edition of the EAR available by 
subscription from the Government Printing Office.
* * * * *

PART 772--[AMENDED]

    12. The authority citation for 15 CFR part 772 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 
14, 2002, 67 FR 53721, August 16, 2002.
    13. Section 772.1 is amended by removing the definition of ``Denied 
Persons List.''

    Dated: August 15, 2002.
James J. Jochum,
Assistant Secretary for Export Administration.
[FR Doc. 02-21596 Filed 8-26-02; 8:45 am]
BILLING CODE 3510-33-P