[Federal Register Volume 69, Number 183 (Wednesday, September 22, 2004)]
[Rules and Regulations]
[Pages 56693-56695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21303]


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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 040713207-4207-01]
RIN 0694-AD13


India: Removal of Indian Entity and Revision in License Review 
Policy for Certain Indian Entities; and a Clarification

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: On January 12, 2004, President George W. Bush announced the 
Next Steps in Strategic Partnership (NSSP) with India. The proposed 
cooperation outlined in the NSSP will progress through a series of 
reciprocal steps that build on each other, including steps related to 
enhancing cooperation in peaceful uses of space technology and steps to 
create the appropriate environment for successful high technology 
commerce. This rule implements three initial steps the United States 
has agreed to take under the NSSP. These steps are: To remove the 
Indian Space Research Organization (ISRO) Headquarters, Bangalore from 
the Department of Commerce Entity List; to remove the export license 
requirements for items subject to the Export Administration Regulations 
(EAR) having a classification of EAR99 or a classification where the 
third through fifth digits of the Export Commodity Classification 
Number (ECCN) are ``999'', e.g. XX999, for the seven (7) ISRO 
subsidiaries listed on the Entity List; and establish a presumption of 
approval for all items not controlled for nuclear proliferation reasons 
going to the ``balance of plant'' portion of Indian nuclear facilities 
subject to International Atomic Energy Agency safeguards (Rajasthan 1 & 
2 and Tarapur 1 & 2).
    This rule also makes one clarification in order to make clear the 
longstanding interpretation that information regarding the Entity List 
published in the Federal Register is intended to inform the public, not 
simply to inform exporters.

DATES: This rule is effective September 22, 2004.

ADDRESSES: Although this is a final rule, comments are welcome and 
should be addressed to Sharron Cook, Office of Exporter Services, 
Bureau of Industry and Security, Department of Commerce, PO Box 273, 
Washington, DC 20044, e-mailed to: [email protected] or faxed to (202) 
482-3355.
    Comments regarding the collections of information associated with 
this rule, including suggestions for reducing the burden, should be 
sent to OMB Desk Officer, New Executive Office Building, Washington, DC 
20503--Attention: David Rostker; and to the Office of Administration, 
Bureau of Industry and Security, Department of Commerce, 14th and 
Pennsylvania Avenue, NW., Room 6883, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Eileen M. Albanese, Office of Exporter 
Services, Bureau of Industry and Security, Telephone: (202) 482-0436.

SUPPLEMENTARY INFORMATION:

Background

    In November 2001, Indian Prime Minister Vajpayee and President Bush 
committed India and the United States to a strategic partnership. Since 
then, the two countries have strengthened bilateral cooperation 
significantly in several areas. On January 12, 2004, the two leaders 
announced the next steps in implementing a shared vision to expand 
cooperation, deepen the ties of commerce and friendship between the two 
nations, and increase stability in Asia and beyond.
    The proposed cooperation will progress through a series of 
reciprocal steps that will build on each other. It

[[Page 56694]]

will include expanded engagement on nuclear regulatory and safety 
issues and missile defense, ways to enhance cooperation in peaceful 
uses of space technology, and steps to create the appropriate 
environment for successful high technology commerce.
    This rule implements three initial steps in transforming the 
relationship between the United States and India by: (1) Removing the 
Indian Space Research Organization (ISRO) Headquarters in Bangalore 
from the Department of Commerce Entity List contained in Supplement No. 
4 to Part 744 of the Export Administration Regulations (EAR); (2) 
removing the license requirement for the seven (7) ISRO subsidiaries 
listed on the Entity List for all items subject to the Export 
Administration Regulations (EAR) having a classification of EAR99 or a 
classification where the third through fifth digits of the Export 
Commodity Classification Number (ECCN) are ``999'', e.g., XX999.; and 
(3) establishing a presumption of approval for all items not controlled 
for nuclear proliferation reasons going to the ``balance of plant'' 
portion of Indian nuclear facilities subject to International Atomic 
Energy Agency safeguards (Rajasthan 1 & 2 and Tarapur 1 & 2). Balance 
of plant'' refers to the part of a nuclear power plant used for power 
generation (e.g., turbines, controllers, or power distribution) to 
distinguish it from the nuclear reactor. This explanation of ``balance 
of plant'' is added as a footnote to the Entity List.
    The removal of ISRO Headquarters, Bangalore from the Entity List 
eliminates the existing license requirements in Supplement No. 4 to 
Part 744 for exports to this entity. The removal of entities from the 
Entity List does not relieve exporters or reexporters of their 
obligations under Part 744. Neither the removal of entities from the 
Entity List or the removal of license requirements for entities on the 
Entity List relieves exporters or reexporters of their obligations 
under General Prohibition 5 in Sec.  736.2(b)(5) of the EAR which 
provides that, ``you may not, without a license, knowingly export or 
reexport any item subject to the EAR to an end-user or end-use that is 
prohibited by part 744 of the EAR.'' BIS strongly urges the use of 
Supplement No. 3 to part 732 of the EAR, ``BIS's ``Know Your Customer'' 
Guidance and Red Flags'' when exporting or reexporting to India.
    This rule also amends section 744.1 by revising the phrase 
``Exporters are'' to read ``The public is'' in the second sentence of 
paragraph (c). BIS is revising this phrase in order to clarify the 
longstanding interpretation that when information regarding the Entity 
List was published in the Federal Register, BIS was informing the 
public. Therefore, this rule clarifies that BIS's intent has always 
been to notify all persons that entities listed in Supplement No. 4 are 
ineligible to receive any items subject to the EAR without a license to 
the extent specified in the supplement. The word ``Exporter'' should 
not be read to limit the scope of the notice.
    Although the Export Administration Act expired on August 20, 2001, 
Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp., p. 783 
(2002)) as extended by the Notice of August 7, 2003 (3 CFR, 2003 Comp. 
328 (2004)), continues the Regulations in effect under the 
International Emergency Economic Powers Act.

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 of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
involves a collection of information subject to the PRA. This 
collection has been approved by OMB under control number 0694-0088, 
``Multi-Purpose Application,'' which carries a burden hour estimate of 
58 minutes for a manual or electronic submission. Send comments 
regarding these burden estimates or any other aspect of these 
collections of information, including suggestions for reducing the 
burden, to OMB Desk Officer, New Executive Office Building, Washington, 
DC 20503; and to the Office of Administration, Bureau of Industry and 
Security, Department of Commerce, 14th and Pennsylvania Avenue, NW., 
Room 6883, Washington, DC 20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 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 (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 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 Sharron Cook, Office 
of Exporter Services, Bureau of Industry and Security, Department of 
Commerce, PO Box 273, Washington, DC 20044.

List of Subjects in 15 CFR Part 744

    Exports, Foreign trade, Reporting and recordkeeping requirements.

0
Accordingly, part 744 of the Export Administration Regulations (15 CFR 
parts 730-799) is amended as follows:

PART 744--[AMENDED]

0
1. 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; 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 October 29, 2003, 
68 FR 62209, 3 CFR, 2003 Comp., p. 347; Notice of August 6, 2004, 69 
FR 48763 (August 10, 2004).


Sec.  744.1  [Amended]

0
2. Section 744.1 is amended by revising the phrase ``Exporters are'' to 
read ``The public is'' in the second sentence of paragraph (c).

0
3. In Supplement No. 4 to part 744, under the country of ``India'', the 
entities ``Indian Space Research Organization (ISRO) headquarters in 
Bangalore'' and ``Department of Atomic Energy Agency entities'' are 
revised to read as set forth below:

Supplement No. 4 to Part 744--Entity List

* * * * *

[[Page 56695]]



----------------------------------------------------------------------------------------------------------------
                                                              License         License review    Federal Register
            Country                      Entity             requirement           policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
INDIA..........................  The following Indian    For all items      Case-by-case       63 FR 64322, 11/
                                  Space Research          subject to the     review for all     19/98; 65 FR
                                  Organization (ISRO)     EAR having a       items on the CCL.  14444, 03/17/00;
                                  subordinate entities:   classification                        66 FR 50090, 10/
                                  ISRO Telemetry,         other than (1)                        01/01; [Insert
                                  Tracking and Command    EAR99 or (2) a                        Federal Register
                                  Network (ISTRAC);       classification                        citation 09/22/
                                  ISRO Inertial Systems   where the third                       04.
                                  Unit (IISU),            through fifth
                                  Thiruvananthapuram;     digits of the
                                  Liquid Propulsion       ECCN are
                                  Systems Center; Solid   ``999'', e.g.
                                  Propellant Space        XX999.
                                  Booster Plant
                                  (SPROB); Space
                                  Applications Center
                                  (SAC), Ahmadabad;
                                  Sriharikota Space
                                  Center (SHAR); Vikram
                                  Sarabhai Space Center
                                  (VSSC),
                                  Thiruvananthapuram.
                                 The following           For all items      Case-by-case for   63 FR 64322, 11/
                                  Department of Atomic    subject to the     all items listed   19/98; 65 FR
                                  Energy entities:        EAR.               on the CCL.        14444, 03/17/00;
                                  Bhabha Atomic                              Presumption of     66 FR 50090, 10/
                                  Research Center                            approval for       01/01; [Insert
                                  (BARC); Indira Gandhi                      EAR99 items.       Federal Register
                                  Atomic Research                                               citation 09/22/
                                  Center (IGCAR);                                               04.
                                  Indian Rare Earths;
                                  Nuclear reactors
                                  (including power
                                  plants) not under
                                  International Atomic
                                  Energy Agency (IAEA)
                                  safeguards, fuel
                                  reprocessing and
                                  enrichment
                                  facilities, heavy
                                  water production
                                  facilities and their
                                  collocated ammonia
                                  plants.
                                 The following           For all items      Case-by-case for   63 FR 64322, 11/
                                  Department of Atomic    subject to the     all items listed   19/98; 65 FR
                                  Energy entities:        EAR.               on the CCL.        14444, 03/17/00;
                                  Nuclear reactors                           Presumption of     66 FR 50090, 10/
                                  (including power                           approval for       01/01; [Insert
                                  plants) subject to                         EAR99 items.       Federal Register
                                  International Atomic                       Presumption of     citation 09/22/
                                  Energy Agency (IAEA)                       approval for       04.
                                  safeguards: Tarapur                        EAR99 items not
                                  (TAPS 1 & 2);                              controlled for
                                  Rajasthan (RAPS 1 &                        Nuclear
                                  2).                                        Proliferation
                                                                             (NP) reasons for
                                                                             use in the
                                                                             ``balance of
                                                                             plant'' (non-
                                                                             reactor-related
                                                                             end uses) \1\
                                                                             activities at
                                                                             nuclear
                                                                             facilities
                                                                             subject to
                                                                             International
                                                                             Atomic.
----------------------------------------------------------------------------------------------------------------
\1\ ``Balance of Plant'' refers to the part of a nuclear power plant used for power generation (e.g., turbines,
  controllers, or power distribution) to distinguish it from the nuclear reactor.


    Dated: September 17, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-21303 Filed 9-21-04; 8:45 am]
BILLING CODE 3510-33-P