[Federal Register Volume 74, Number 81 (Wednesday, April 29, 2009)]
[Rules and Regulations]
[Pages 19382-19385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9817]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 090415662-9687-01]
RIN 0694-AE61


Additions and Revisions to the List of Approved End-Users and 
Respective Eligible Items for the People's Republic of China (PRC) 
Under Authorization Validated End-User (VEU)

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS) 
amends the Export Administration Regulations (EAR) to add a name to the 
list of end-users for the People's Republic of China (PRC) approved to 
receive exports, reexports and transfers of certain items under 
Authorization Validated End-User (VEU). This rule also amends the EAR 
to add and revise eligible items and destinations for existing VEU 
authorizations. Specifically, this rule amends the EAR to authorize one 
additional VEU and identify its respective eligible items for export 
and reexport to the PRC. This rule also amends the authorizations of 
two pre-existing VEUs in the PRC. Finally, this rule makes a 
modification to the listed name of an existing VEU in the PRC. In a 
final rule published in the Federal Register on June 19, 2007, BIS 
revised and clarified U.S. export control policy for the PRC, 
establishing Authorization VEU and identifying the PRC as the initial 
eligible destination. In a final rule published in the Federal Register 
on October 19, 2007, BIS published the names of the first five 
validated end-users in the PRC that were approved to receive certain 
specified items under Authorization VEU.

DATES: This rule is effective April 29, 2009. Although there is no 
formal comment period, public comments on this regulation are welcome 
on a continuing basis.

ADDRESSES: You may submit comments, identified by RIN 0694-AE61 
(VEUPRCADE), by any of the following methods:
    E-mail: [email protected]. Include ``RIN 0694-AE61 
(VEUPRCADE)'' in the subject line of the message.
    Fax: (202) 482-3355. Please alert the Regulatory Policy Division, 
by calling (202) 482-2440, if you are faxing comments.
    Mail or Hand Delivery/Courier: Sheila Quarterman, U.S. Department 
of Commerce, Bureau of Industry and Security, Regulatory Policy 
Division, 14th Street & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230, Attn: RIN 0694-AE61 (VEUPRCADE).
    Send comments regarding the collection of information associated 
with this rule, including suggestions for reducing the burden to 
Jasmeet Seehra, Office of Management and Budget (OMB), by e-mail to 
[email protected] or by fax to (202) 395-7285. Comments on this 
collection of information should be submitted separately from comments 
on the final rule (i.e., RIN 0694-AE61 (VEUPRCADE))--all comments on 
the latter should be submitted by one of the three methods outlined 
above.

FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chairman, End-User 
Review Committee, Bureau of Industry and Security, U.S. Department of 
Commerce, 14th Street & Pennsylvania Avenue, NW., Washington, DC 20230; 
by telephone (202) 482-3811, or by e-mail to [email protected].

SUPPLEMENTARY INFORMATION:

Background

Authorization Validated End-User (VEU): Additions and Modifications to 
the List of Approved End-Users, Eligible Items and Destinations

    Consistent with U.S. Government policy to facilitate trade for 
civilian end-users in the PRC, BIS amended the EAR in a final rule on 
June 19, 2007 (72 FR 33646) by creating a new authorization for 
``validated end-users'' (VEUs) located in eligible destinations to 
which eligible items (commodities, software and technology, except 
those controlled for missile technology or crime control reasons) may 
be exported, reexported or transferred under a general authorization 
instead of a license, in conformance with Section 748.15 of the EAR.
    Authorization VEU is a mechanism to facilitate increased high-
technology exports to companies in the PRC and India that have a record 
of using such items responsibly. VEUs may obtain eligible items that 
are on the Commerce Control List without having to wait for their 
suppliers to obtain export licenses from BIS. A wide range of items are 
eligible for shipment under Authorization VEU. In addition to U.S. 
exporters, Authorization VEU may be used by foreign reexporters, and 
does not have an expiration date.

Additional VEUs in the PRC and Their Respective ``Eligible Items (By 
ECCN)'' and ``Eligible Destinations''

    This final rule amends Supplement No. 7 to Part 748 of the EAR to 
identify an additional company with eligible facilities in the PRC as a 
VEU and to identify the items that may be exported, reexported or 
transferred to it under Authorization VEU. This new entry is for Aviza 
Technology China. It lists Export Control Classification Numbers 
(ECCNs) 2B230, 3B001.c.1.a and 3B001.e under ``Eligible Items (By 
ECCN),'' and includes the following facility names and addresses under 
``Eligible Destination:''

Aviza Technology China, Room B-1501, No. 188, Tomson Center, Zhang Yang 
Road, Shanghai, China 200122.
Aviza Technology China, Room 612, International Business Center, No. 
18, Hong Da North Road, Beijing Economics and Technology Development 
Area, Beijing, China.
Beijing Bonded: CIES, Electronics Building, A23, Fuxing Road, Beijing, 
China 100036.
Shanghai Bonded: SLC, Shanghai Industrial-Wailianfa International 
Logistics Co., Ltd., Address: 13F Waigaoqiao Building, 889 Yang Gao 
Road(N), Pudong, Shanghai, China.
HMG Logistics (Chengdu) Co., Ltd., Floor 1, No. 5 Standard Warehouse, 
EPZ (West Area), Chengdu, China 611731.
Modifications to Existing VEU Authorizations
    This final rule also amends Supplement No. 7 to Part 748 of the EAR 
to implement requests received from existing VEUs for modifications in 
their authorizations to include additional eligible items and 
additional destinations, and to list a change of name for an existing 
VEU. Specifically, this rule makes the following amendments to 
Supplement No. 7 to Part 748:

[[Page 19383]]

    (1) The authorization for Applied Materials China, Ltd. now also 
includes ECCN 2B006.b.1.a under ``Eligible Items (By ECCN)'' and the 
following facility name and address under ``Eligible Destination:'' 
Applied Materials (Xi'an Ltd.), No. 28 Xin Xi Ave., Xi'an High Tech 
Park, Export Processing Zone, Xi'an Shanxi, China 710075.
    (2) Based upon notification from existing VEU BHA Aerocomposite 
Parts Co., Ltd. that the company's name has legally been changed, the 
name ``BHA Aerocomposite Parts Co., Ltd.'' shown in Supplement No. 7 to 
Part 748 of the EAR prior to this rule has been changed to ``Boeing 
Tianjin Composites Co. Ltd.,'' under both the ``Validated End-User'' 
and ``Eligible Destination'' columns. Further, the authorization for 
Boeing Tianjin Composites Co. Ltd., formerly BHA Aerocomposite Parts 
Co., Ltd., now also includes ECCN 2B001.b.2 (limited to machine tools 
with accuracies no better than (i.e., less than) 13 microns), and 
replaces ECCN 2B001.e.1.a. with 2B001.e. under ``Eligible Items (By 
ECCN).'' ECCN 2B001.e. encompasses all parameters of its subparagraphs.
    With the publication of this final rule, the total number of VEUs 
in the PRC is six and the total number of eligible facilities is 
twenty. The VEUs listed in Supplement No. 7 to Part 748 were reviewed 
and approved by the U.S. Government in accordance with the provisions 
of Section 748.15 and Supplement Nos. 8 and 9 to Part 748 of the EAR.
    Approving this new end-user as a VEU is expected to further 
facilitate exports to civil end-users in the PRC. Approval of this 
company also represents a significant savings of time for suppliers and 
end-users. Authorization VEU will eliminate the burden on exporters and 
reexporters of preparing license applications and on BIS for processing 
such applications, as exports and reexports will be made under general 
authorization instead of under license. This savings will enable 
exporters and reexporters to supply VEUs much more quickly, thus 
enhancing the competitiveness of the exporters, reexporters, and end-
users in the PRC.
    To ensure appropriate facilitation of exports and reexports, on-
site reviews of the VEUs may be warranted pursuant to paragraph 
748.15(a)(2) and Section 7(iv) of Supplement No. 8 to Part 748 of the 
EAR. If such reviews are warranted, BIS will inform the PRC Ministry of 
Commerce.
    Since August 21, 2001, the Export Administration Act has been in 
lapse and the President, through Executive Order 13222 of August 17, 
2001 (3 CFR, 2001 Comp., p. 783 (2002)), as extended most recently by 
the Notice of July 23, 2008 (73 FR 43603, July 25, 2008), has continued 
the EAR in effect under the International Emergency Economic Powers 
Act. BIS continues to carry out the provisions of the Act, as 
appropriate and to the extent permitted by law, pursuant to Executive 
Order 13222.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
the purposes of Executive Order 12866.
    2. Notwithstanding any other provisions 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 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 
collections previously approved by the OMB under control number 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748; and for 
recordkeeping, reporting and review requirements in connection with 
Authorization Validated End-User, which carries an estimated burden of 
30 minutes per submission. This rule is expected to result in a 
decrease in license applications submitted to BIS. Total burden hours 
associated with the Paperwork Reduction Act and Office of Management 
and Budget control number 00694-0088 are not expected to increase 
significantly as a result of this rule.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The provisions of the Administrative Procedure Act 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 Sheila Quarterman, Regulatory Policy Division, 
Bureau of Industry and Security, U.S. Department of Commerce, 14th 
Street & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230

List of Subjects in 15 CFR Part 748

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

0
Accordingly, part 748 of the Export Administrative Regulations (15 CFR 
Parts 730-774) is amended as follows:

PART 748--[AMENDED]

0
1. The authority citation for 15 CFR Part 748 continues 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 July 23, 2008, 73 FR 
43603 (July 25, 2008).


0
2. Supplement No. 7 to Part 748 is amended by:
0
a. Revising the entry for ``Applied Materials China, Ltd.'';
0
b. Adding, in alphabetical order, an entry for ``Aviza Technology 
China''; and
0
c. Revising the entry for ``BHA Aerocomposite Parts Co., Ltd.''.
    The revisions and addition read as follows:

[[Page 19384]]



  Supplement No. 7 t Part 748--Authorization Validated End-User (VEU);
   List of Validated End-Users, Respective Items Eligible for Export,
             Reexport and Transfer and Eligible Destinations
------------------------------------------------------------------------
                               Eligible items (by
     Validated end-user               ECCN)         Eligible destination
------------------------------------------------------------------------
Applied Materials China,      2B006.b.1.a; 2B230;   Applied Materials
 Ltd..                         2B350.g.3;            China, Ltd.--
                               3B001.b.1;            Shanghai Depot c/o
                               3B001.c.2; 3B001.e;   Shanghai Applied
                               3B001.f.3; 3C001;     Materials Technical
                               3C002.                Service Center, 368
                                                     Zhang Jiang Road,
                                                     Pudong Zhangjiang
                                                     Hi-Tech Park,
                                                     Shanghai, China
                                                     201203.
                                                    Applied Materials
                                                     China, Ltd.--
                                                     Beijing Depot c/o
                                                     Beijing Applied
                                                     Materials Technical
                                                     Service Center
                                                     Bldg. 9, Area A,
                                                     No. 1 North Di
                                                     Sheng Street, BDA
                                                     Beijing, China
                                                     100176.
                                                    Applied Materials
                                                     China, Ltd.--Wuxi
                                                     Depot c/o Sinotrans
                                                     Jiangsu Group
                                                     Fuchang Co. J5 A-B
                                                     Wuxi Export
                                                     Processing Zone,
                                                     287 Gaolang Road,
                                                     Wuxi New District,
                                                     Wuxi Jiangsu China
                                                     214028.
                                                    Applied Materials
                                                     (Xi'an Ltd.) No. 28
                                                     Xin Xi Ave., Xi'an
                                                     High Tech Park
                                                    Export Processing
                                                     Zone, Xi'an Shanxi,
                                                     China 710075.
Aviza Technology China......  2B230; 3B001.c.1.a;   Aviza Technology
                               3B001.e.              China, Room B-1501,
                                                     No. 188, Tomson
                                                     Center, Zhang Yang
                                                     Road, Shanghai,
                                                     China 200122.
                                                    Aviza Technology
                                                     China, Room 612,
                                                     International
                                                     Business Center,
                                                     No. 18, Hong Da
                                                     North Road, Beijing
                                                     Economics and
                                                     Technology
                                                     Development Area,
                                                     Beijing, China.
                                                    Beijing Bonded:
                                                     CIES, Electronics
                                                     Building, A23,
                                                     Fuxing Road,
                                                     Beijing, China
                                                     100036.
                                                    Shanghai Bonded:
                                                     SLC, Shanghai
                                                     Industrial--Wailian
                                                     fa International
                                                     Logistics Co.,
                                                     Ltd., Address: 13F
                                                     Waigaoqiao Building
                                                     889 Yang Gao Road
                                                     (N), Pudong,
                                                     Shanghai, China.
                                                    HMG Logistics
                                                     (Chengdu) Co.,
                                                     Ltd., Floor 1, No.
                                                     5 Standard
                                                     Warehouse, EPZ
                                                     (West Area),
                                                     Chengdu, China
                                                     611731.
Boeing Tianjin Composites     1A002.a; 1B001.f;     Boeing Tianjin
 Co. Ltd.                      1C010.b; 1C010.e;     Composites Co.
                               1D001 (limited to     Ltd., No. 4-388
                               ``software''          Heibei Road, Tanggu
                               specially designed    Tianjin, China.
                               or modified for the
                               ``development'',
                               ``production'' or
                               ``use'' of
                               equipment
                               controlled by
                               1B001.f) 1E001
                               (limited to
                               ``technology''
                               according to the
                               General Technology
                               Note for the
                               ``development'' or
                               ``production'' of
                               items controlled by
                               1A002.a, 1B001.f,
                               1C010.b & .e, and
                               2B001.a); 2B001.b.2
                               (limited to machine
                               tools with
                               accuracies no
                               better than (i.e.,
                               less than) 13
                               microns); 2B001.e;
                               2D001 (limited to
                               ``software,'' other
                               than that
                               controlled by
                               2D002, specially
                               designed or
                               modified for the
                               ``development'',
                               ``production'' or
                               ``use'' of
                               equipment
                               controlled by
                               2B001.b.2 and
                               2B001.e); 2D002
                               (limited to
                               ``software'' for
                               electronic devices,
                               even when residing
                               in an electronic
                               device or system,
                               enabling such
                               devices or systems
                               to function as a
                               ``numerical
                               control'' unit,
                               capable of
                               coordinating
                               simultaneously more
                               than 4 axes for
                               ``contouring
                               control''
                               controlled by
                               2B001.b.2 and
                               2B001.e).
                              * * * * * * *
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[[Page 19385]]

    Dated: April 24, 2009.
Matthew S. Borman,
Acting Assistant Secretary for Export Administration.
[FR Doc. E9-9817 Filed 4-28-09; 8:45 am]
BILLING CODE 3510-33-P