[Federal Register Volume 71, Number 54 (Tuesday, March 21, 2006)]
[Rules and Regulations]
[Pages 14097-14099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-2685]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 744, 766, and 770

[Docket No. 060109005-6005-01]
RIN 0694-AD67


Corrections and Clarifications to the Export Administration 
Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule revises the Export Administration Regulations (EAR) 
to clarify certain provisions or to update technical information. The 
Bureau of Industry and Security identified these revisions through 
internal review or questions from the public.

DATES: This rule is effective March 21, 2006.

ADDRESSES: Send comments regarding the Paperwork Reduction Act burden 
estimates or any other aspect of the collection of information affected 
by this rule to David Rostker, OMB Desk Officer, by e-mail at [email protected] or by fax to 202 395 7285; with a copy to the 
Regulatory Policy Division, Bureau of Industry and Security at one of 
the addresses below. Send comments concerning any other aspect of this 
rule via e-mail to [email protected], via fax to 202 482 3355 or to the 
Regulatory Policy Division, Bureau of Industry and Security, Room 
H2017, U.S. Department of Commerce, Washington, DC 20230. Please refer 
to RIN 0694-AD67 in all comments.

FOR FURTHER INFORMATION CONTACT: William Arvin, Regulatory Policy 
Division, [email protected], tel. (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

    BIS reviews the EAR to identify provisions that contain incorrect 
citations, are obsolete, or that otherwise need correcting. In 
addition, members of the public sometimes point out provisions that 
need revising. This rule makes several such revisions as more fully 
described below.

Clarification of Country Group Restrictions on Use of Certain License 
Exceptions

    Section 740.9(b) of the Export Administration Regulations provides 
an exception to export license requirements for items temporarily in 
the United States under certain circumstances. Two of those 
circumstances are: Items traveling through the United States, and items 
imported into the United States for display at exhibitions or trade 
fairs. If such items are listed on the Commerce Control List for 
national security, nuclear nonproliferation, chemical or biological 
weapons proliferation or missile technology reasons, the License 
Exception provisions that govern these two circumstances do not 
authorize exports to certain destinations in Country Group D (Supp. No. 
1 to Part 740) because of national security, nuclear nonproliferation, 
chemical or biological weapons, or missile technology concerns.

Clarification of Country Group Restrictions on Use of License Exception 
TMP for Items Moving Through the United States

    Prior to publication of this rule, Sec.  740.9(b)(1)(i), which 
relates to items moving in transit through the United States, 
transposed terms in a way that could appear to restrict items 
controlled for missile technology reasons from being sent to countries 
of concern for chemical and biological weapons reasons and to restrict 
items controlled for chemical and biological reasons to countries of 
concern regarding missiles. Specifically, the phrase ``Items controlled 
for national security, nuclear proliferation, missile technology, or 
chemical and biological weapons reasons may not be exported to Country 
Group D:1, 2, 3, or 4 * * * respectively * * *'' appeared to restrict 
items controlled for missile technology reasons from Country Group D:3, 
although Country Group D:3 lists countries of concern for chemical and 
biological weapons reasons, and to restrict items controlled for 
chemical or biological weapons proliferation reasons from Country Group 
D:4, although Country Group D:4 of the EAR, lists countries of concern 
for missile technology reasons. This rule transposes the phrases 
``missile technology'' and ``chemical or biological weapons'' in Sec.  
740.9(b)(1)(i) to match them to their relevant country groups.

Clarification of Country Group Restrictions on Use of License Exception 
TMP for Items Imported Into the United States for Exhibitions or Trade 
Fairs

    Prior to publication of this rule, Sec.  740.9(b)(2)(ii)(C), which 
relates to items imported for display at exhibitions or trade fairs and 
being exported to a destination other than that from which imported, 
transposed terms in a way that could appear to restrict items 
controlled for missile technology

[[Page 14098]]

reasons from being sent to countries of concern for nuclear 
proliferation reasons and to restrict items controlled for nuclear 
proliferation reasons from being sent to countries of concern for 
missile proliferation reasons. Specifically, the phrase ``Exports to 
Country Group D:1, 2, 3, or 4 * * * of items controlled for national 
security, missile technology, chemical or biological weapons reasons or 
nuclear proliferation, respectively'' illogically appeared to restrict 
items controlled for missile technology reasons from Country Group D:2 
although Country Group D:2 lists countries of concern for nuclear 
proliferation reasons and to restrict items controlled for nuclear 
nonproliferation reasons from Country Group D:4 although Country Group 
D:4 lists countries of concern for missile proliferation reasons. This 
rule transposes the phrases ``missile technology'' and ``nuclear 
proliferation'' in Sec.  740.9(b)(2)(ii)(C) to match them to their 
relevant country groups.

Correction of Citations in Statement of Licensing Policy Regarding 
Entities Sanctioned Pursuant to Section 11B(1)(B) of the Export 
Administration Act

    Section 744.19 of the EAR describes BIS's licensing policy 
regarding certain sanctioned entities, including entities sanctioned 
pursuant to section 11B(1)(B) of the Export Administration Act of 1979 
as amended. Prior to publication of this rule, paragraph (c) of Sec.  
744.19 incorrectly cited section 11B(1)(B)(i) of the EAA as the section 
providing for denial of items controlled pursuant to the Export 
Administration Act of 1979 and paragraph (d) incorrectly cited section 
11B(1)(B)(ii) as the section providing for denial of items on the MTCR 
Annex. The citations should be reversed. This rule replaces the ``(i)'' 
in the citation in paragraph (c) with a ``(ii)'' and the ``(ii)'' in 
the citation in paragraph (d) with a ``(i)'' thereby correcting the 
citations.

Revision of Administrative Law Judge Address

    This rule revises the address of the Administrative Law Judge in 
Sec.  766.24 to reflect the address currently in use.

Removal of Obsolete Interpretation

    This rule removes and reserves Sec.  770.1(c)--Interpretation 3--
because the commodities to which it applies are no longer on the 
Commerce Control List. That interpretation first appeared in the 
regulations in 1966, when metallic wire and cable were listed on the 
antecedent of the Commerce Control List. No such entry has appeared on 
the Commerce Control List in several years.
    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as extended by the Notice of August 2, 2005, 
70 FR 45273 (August 5, 2005), has continued the Export Administration 
Regulations in effect under the International Emergency Economic Powers 
Act.

Rulemaking Requirements

    1. This 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 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 Office of Management and Budget under 
control number 0694-0088, ``Multi-Purpose Application,'' which carries 
a burden hour estimate of 58 minutes for a manual or electronic 
submission. BIS believes that this rule will not materially affect the 
burden imposed by this collection.
    3. This rule does not contain policies with federalism implications 
as that term is defined under E.O. 13132.
    4. The Department finds that there is good cause under 5 U.S.C. 
553(b)(B) to waive the provisions of the Administrative Procedure Act 
requiring prior notice and the opportunity for public comment because 
it is unnecessary. The changes made by this rule correct inadvertent 
drafting errors. Therefore it is unnecessary to provide notice and 
opportunity for public comment. In addition, the 30-day delay in 
effectiveness required by 5 U.S.C. 553(d) is not applicable because 
this rule is not a substantive rule.
    Because notice of proposed rulemaking and 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.

List of Subjects

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 766

    Administrative practice and procedure, Confidential business 
information, Exports, Law enforcement, Penalties.

15 CFR Part 770

    Exports.


0
Accordingly, parts 740, 744, 766 and 770 of the Export Administration 
Regulations (15 CFR 770-799) are amended as follows:

PART 740--LICENSE EXCEPTIONS

0
1. The authority citation for part 740 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Pub. L. 106-387; 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 2, 2005, 70 FR 45273 (August 5, 2005).


0
2. In Sec.  740.9, revise paragraphs (b)(1)(i) and (b)(2)(ii)(C) to 
read as follows:


Sec.  740.9  Temporary imports, exports, and reexports (TMP).

* * * * *
    (b) * * *
    (1) * * *
    (i) Items controlled for national security reasons, nuclear 
nonproliferation reasons, chemical and biological weapons reasons or 
missile technology reasons may not be exported to Country Group D:1, 2, 
3, or 4 (see Supplement No. 1 to part 740), respectively, under this 
paragraph (b)(1).
* * * * *
    (2) * * *
    (ii) * * *
    (C) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 
to part 740) of items controlled for national security reasons, nuclear 
nonproliferation reasons, chemical and biological weapons reasons or 
missile technology reasons, respectively.
* * * * *

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

0
3. The authority citation for part 744 continues to read as follows:


[[Page 14099]]


    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 August 2, 2005, 70 
FR 45273 (August 5, 2005); Notice of October 25, 2005, 70 FR 62027 
(October 27, 2005).


0
4. In Sec.  744.19, revise paragraphs (c) and (d) to read as follows:


Sec.  744.19  Licensing policy regarding persons sanctioned pursuant to 
specified statutes.

* * * * *
    (c) A sanction issued pursuant to section 11B(b)(1)(B)(ii) of the 
Export Administration Act of 1979, as amended, and as carried out by 
Executive Order 13222 of August 17, 2001, that prohibits the issuance 
of new licenses for exports to the sanctioned entity of items 
controlled pursuant to the Export Administration Act of 1979.
    (d) A sanction issued pursuant to section11B(b)(1)(B)(i) of the 
Export Administration Act of 1979, as amended (Missile Technology 
Control Act of 1990), and as carried out by an Executive Order 13222 of 
August 17, 2001, that prohibits the issuance of new licenses for 
exports to the sanctioned entity of MTCR Annex equipment or technology 
controlled pursuant to the Export Administration Act of 1979.

PART 766--ADMINISTRATIVE ENFORCEMENT PROCEEDINGS

0
5. The authority citation for 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 
2, 2005, 70 FR 45273 (August 5, 2005).


0
6. In Sec.  766.24, revise the second sentence of paragraph (e)(3) to 
read as follows:


Sec.  766.24  Temporary denials.

* * * * *
    (e) * * *
    (3) Appeal Procedure.
    * * * Service on the administrative law judge shall be addressed to 
U.S. Coast Guard, ALJ Docketing Center, 40 S. Gay Street, Baltimore, 
Maryland, 21202-4022. * * *
* * * * *

PART 770--INTERPRETATIONS

0
7. The authority citation for part 770 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 
2, 2005, 70 FR 45273 (August 5, 2005).


Sec.  770.2  [Amended]

0
8. In Sec.  770.2, remove and reserve paragraph (c).

    Dated: March 14, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 06-2685 Filed 3-20-06; 8:45 am]
BILLING CODE 3510-33-P