[Federal Register Volume 74, Number 245 (Wednesday, December 23, 2009)]
[Rules and Regulations]
[Pages 68147-68149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30487]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 0911051394-91397-01]
RIN 0694-AE77


Authorization Validated End-User: Amendment to Existing Validated 
End-User Authorizations in the People's Republic of China (PRC) and 
India

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 suspend the 
availability of Authorization Validated End-User

[[Page 68148]]

(VEU) status for any export, reexport, or transfer (in-country) of 
items subject to the EAR to Aviza Technology China, a VEU in the 
People's Republic of China (PRC/China) and to GE India's GE Fanuc 
Systems PVT Ltd facility in India. VEU status was provided to the PRC 
company in an April 2009 final rule published in the Federal Register, 
and to the eligible facility of the Indian company in a July 2009 final 
rule published in the Federal Register.
    BIS is suspending the availability of Authorization VEU for 
exports, reexports, and transfers (in-country) due to material changes 
at the companies, consistent with the authorization's eligible end-user 
provisions. Suspension of the availability of Authorization VEU in this 
amendment is not the result of prohibited activities by the two 
companies. This amendment does not otherwise create a new license 
requirement or adversely affect the licensing policy for exports, 
reexports or transfers of items to the company and facility identified 
in this rule.

DATES: This rule is effective December 23, 2009.

ADDRESSES: Although there is no formal comment period, public comments 
on this regulation are welcome on a continuing basis. You may submit 
comments, identified by RIN 0694-AE77 (VEUAVIZAGE), by any of the 
following methods:
    E-mail: [email protected]. Include ``RIN 0694-AE77 
(VEUAVIZAGE)'' 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 St. & Pennsylvania Avenue, NW., Room 2705, Washington, 
DC 20230, Attn: RIN 0694-AE77 (VEUAVIZAGE).
    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-AE77 (VEUAVIZAGE))--all 
comments on the matter should be submitted by one of the three methods 
outlined above.

FOR FURTHER INFORMATION CONTACT: Elizabeth Scott Sangine, Acting Chair, 
End-User Review Committee, Bureau of Industry and Security, U.S. 
Department of Commerce, 14th St. & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230; by telephone (202) 482-3343, or by e-mail to 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    BIS amended the EAR in a final rule published in the Federal 
Register on June 19, 2007 (72 FR 33646) to create a new Authorization 
Validated End-User (VEU). Authorization VEU allows the export, reexport 
or transfer (in-country) of certain specified items (including 
commodities, software and technology, except for those controlled for 
missile technology or crime control reasons) to approved civil end-
users located in eligible destinations under a general authorization 
instead of under multiple individual licenses. Authorization VEU is 
described in Sec.  748.15 of the EAR. The June 19 rule also identified 
China as the initial eligible destination for shipments under the 
authorization; BIS identified India as an eligible destination in an 
October 1, 2007 final rule (72 FR 56010).
    In a rule published in the Federal Register on April 29, 2009 (74 
FR 19382), BIS designated Aviza Technology China (Aviza) as a VEU, thus 
authorizing certain specific exports, reexports and transfers (in-
country) to the listed facilities of the company under Authorization 
VEU. On July 2, 2009, BIS designated GE India as a VEU (74 FR 31620); 
GE India's listing included its GE Fanuc Systems PVT Ltd. (GE Fanuc) 
facility as an ``Eligible Destination,'' and listed specific items that 
could be exported, reexported or transferred (in-country) to the GE 
Fanuc facility under Authorization VEU. Prior to publication of this 
rule, Aviza and GE India's GE Fanuc facility were listed in Supplement 
No. 7 to Part 748 of the EAR (Supplement No. 7 to Part 748--
Authorization Validated End-User (VEU): List of Validated End-Users, 
Respective Eligible Items and Eligible Destinations).
    In this final rule, BIS amends the EAR to suspend, until further 
notice, the authority of any person to export, reexport, or transfer 
(in-country) any items subject to the EAR under Authorization VEU to 
Aviza and to the GE Fanuc facility in India. BIS is suspending the 
availability of Authorization VEU for Aviza and the GE Fanuc facility 
due to material changes at the companies, consistent with Sec.  748.15 
of the EAR.
    Suspension of the availability of Authorization VEU in this 
amendment is not the result of prohibited activities by the two 
companies. This amendment does not otherwise create a new license 
requirement or adversely affect the licensing policy for exports, 
reexports or transfers of items to the company and facility identified 
in this rule.
    This amendment applies only to transactions under Authorization VEU 
involving Aviza and the GE Fanuc facility in India, which were 
previously identified in Supplement No. 7 to Part 748 of the EAR. This 
amendment does not apply to other companies or facilities in China or 
India that may be designated as eligible under Authorization VEU. 
License requirements and other provisions of the EAR continue to apply 
to exports, reexports, or transfers (in-country) to Aviza in China and 
the GE Fanuc facility in India. Additionally, all conditions and 
restrictions that applied to transactions involving Aviza or the GE 
Fanuc facility pursuant to Authorization VEU prior to the effective 
date of this amendment continue to apply. These restrictions and 
conditions include any that were imposed on either company in 
connection with its eligibility for Authorization VEU, as communicated 
by BIS in the initial letter that granted each company VEU status.
    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 August 13, 2009 (74 FR 41325 (August 14, 2009), 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.

Saving Clause

    Shipments of items removed from eligibility for export, reexport or 
transfer under Authorization VEU as a result of this regulatory action 
that were on dock for loading, on lighter, laden aboard an exporting 
carrier, or en route aboard a carrier to a port of export, on December 
23, 2009, pursuant to actual orders for export or reexport to a foreign 
destination, may proceed to that destination under the previously 
applicable authorization so long as they are exported, reexported or 
transferred before January 6, 2010. Any such items not actually 
exported or reexported before midnight, on January 6, 2010, require a 
license in accordance with this regulation.

[[Page 68149]]

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of Executive Order 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 (PRA), 44 U.S.C. 
3501 et seq., unless that collection of information displays a 
currently valid OMB Control Number. This regulation involves 
information 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 
which involves requirements in connection with Authorization Validated 
End-User. This rule is expected to result in an increase in license 
applications submitted to BIS. Total burden hours associated with the 
PRA and OMB control number 0694-0088 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 to this 
rule 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 may be submitted to Sheila Quarterman, 
Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, 14th St. & 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 Administration 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 August 13, 2009, 74 
FR 41325 (August 14, 2009).

Supplement No. 7 to Part 748 [Amended]

0
2. Supplement No. 7 to part 748 (Authorization Validated End-User 
(VEU): List of Validated End-Users, Respective Eligible Items and 
Eligible Destinations) is amended by:
0
a. Removing the entry for Aviza Technology China from the ``Validated 
End-User,'' ``Eligible Items (By ECCN),'' and ``Eligible Destination'' 
columns; and
0
b. Removing the entry for GE Fanuc Systems PVT Ltd. from the ``Eligible 
Items (by ECCN)'' and ``Eligible Destination'' columns associated with 
the VEU GE India.

    Dated: December 18, 2009.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. E9-30487 Filed 12-22-09; 8:45 am]
BILLING CODE 3150-33-P